9.4 Fraud and payment integrity controls and treatment
The department places great emphasis on protecting the integrity of government outlays. It maintains a strong focus on preventing inaccurate payments and guarding against the threats of fraud and corruption using a range of control measures.
Fraud Control Assurance Programme
The department’s innovative and industry‑leading Fraud Control Assurance Programme tests the effectiveness of fraud controls to identify and treat vulnerabilities. The Programme reduces opportunities to commit fraud and provides ongoing assurance that the department’s fraud controls effectively mitigate existing and emerging risks. Under the Programme, the department:
- reviews policies, processes and systems and works with stakeholders to understand control environments
- employs investigative techniques and forensic analysis to evaluate how well controls work
- undertakes scenario‑based testing, including controlled attempts to breach fraud controls, to identify vulnerabilities
- contributes to positive outcomes for government and Australian citizens by supporting the department to implement and maintain strong fraud controls.
In 2018–19, the Programme tested the effectiveness of 239 fraud controls across a range of departmental programs and corporate functions. The program also worked with departmental stakeholders to co‑design more than 54 additional fraud risk treatments.
The department is recognised as a leader in fraud control assurance within the Australian public sector. In 2018, the Programme won a Prime Minister’s Award for Excellence in Public Sector Management.
Payment Integrity Conformance Programme
The Payment Integrity Conformance Programme provides assurance that the department’s payment integrity controls work effectively and that eligible customers or providers receive the right payment. Under the Programme, the department:
- works with program owners and staff to understand the control environment
- completes an in‑depth assessment of a sample of activities, customer records and claims to assess the level of payment accuracy
- assesses the effectiveness of controls including legislation, regulations, policies, processes, communications, systems and staff decisions
- provides assurance that current controls are effective
- co‑designs treatments to address identified opportunities to increase payment accuracy
- contributes to positive outcomes for government and Australian citizens by supporting the department to pay the right person the right amount through the right program at the right time.
In 2018–19, the Programme assessed the effectiveness of 307 payment integrity controls across a range of departmental programs. The Programme also worked with stakeholders to co‑design more than 131 additional payment integrity risk treatments.