Report reveals deficits in Commonwealth fraud
At the same time as the Government and regulators demand higher standards of companies in the financial services sector, a new Australian National Audit Office (ANAO) report has revealed a less than optimal approach to fraud within Commonwealth departments and agencies.
The report, tabled in Parliament yesterday, revealed difficulties in precisely determining the level of fraud across departments and agencies because they do not all work to the same guidelines and definitions.
It found that while a fraud survey had revealed 97 per cent of agencies used the definition of fraud as specified in the guidelines, that definition was “more inclusive and general than used in practice by agencies”, with the result that not all agencies classified fraud incidents in the same way.
“Owing to agencies’ differing applications of the definition of fraud, Australian Government agencies are reporting incomplete and inconsistent data on the extent of fraud to the Australian Institute of Criminology (AIC) in its Annual Reporting Questionnaire,” the ANAO report said.
It said Australian Government agencies had commenced annual reporting on fraud in 1995-96 but noted that the AIC advised that since this date there had not been an opportunity to produce fraud trend information owing to the poor quality of data reported by agencies, “and the inconsistencies present in the use of units of measurement and categories”.
The report said the AIC had indicated that a major revision of the reporting requirements would be required in order for sufficient accuracy to be obtained from reporting so that trends could be identified from year-to-year in the future.
AUTHOR
Mike Taylor
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