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Learn about the Fraud and Corruption Control Framework

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As the Attorney-General and the Minister for Finance recently announced, a new Commonwealth Fraud and Corruption Framework comes into effect on 1 July 2024.

Read the new 2024 framework

The Commonwealth Fraud and Corruption Control Framework 2024 is designed to support Australian Government entities to effectively manage the risks of fraud and corruption.

The changes to the framework form part of the government’s integrity reforms to improve the standards of integrity across the public sector and trust in government.

The Commonwealth Fraud Control Framework 2017 will continue to apply until 30 June 2024.

Read the current 2017 framework

About the framework

Purpose

The purpose of the framework is to support an effective system of governance and accountability across Commonwealth entities for protecting public resources from fraud and corruption.

The framework establishes the key elements entities require for effective fraud and corruption control. These are:

  • governance and oversight
  • rigorous risk assessments
  • informed and targeted control plans
  • effective controls encompassing appropriate prevention, detection, investigation, referral and reporting mechanisms.

Elements of the framework

The framework consists of 3 parts:

  1. Fraud and Corruption Rule (Section 10 of the Public Governance, Performance and Accountability (PGPA) Rule 2014) provides the legislative basis for the Commonwealth’s fraud and corruption control arrangements.
  2. Fraud and Corruption Policy sets out the key procedural requirements for accountable authorities of non-corporate Commonwealth entities (NCEs) to establish and maintain an appropriate system of fraud and corruption control for their entity.
  3. Fraud and Corruption Guidance (Resource Management Guide 201: Preventing, detecting and dealing with fraud and corruption) provides more detailed guidance to assist officers who are responsible for fraud and corruption control within entities to implement the requirements of the Rule and the Policy.

How the framework applies

The 3 parts of the framework apply to different types of Commonwealth entities as follows:

While some parts of the framework are not mandatory for corporate Commonwealth entities (CCEs) and Commonwealth companies, these entities are strongly encouraged to implement all parts of the framework.

Overview of changes from the 2017 framework

The changes form part of the Australian Government’s integrity reforms and align with new obligations of the National Anti-Corruption Commission.

The Fraud and Corruption Rule amendments align it with Australian Government policies including the Commonwealth Risk Management Policy and the Australian Government Investigation Standard, along with industry standards. This will strengthen the Commonwealth’s counter fraud and anti-corruption efforts.

The most significant change for the Fraud and Corruption Rule is that it now applies to corruption as well as fraud. This means accountable authorities of Commonwealth entities must take steps to prevent, detect and deal with corrupt conduct. This complements the National Anti-Corruption Commission’s prevention and investigation functions.

There are also new clauses requiring Commonwealth entities to:

  • have governance structures and processes to effectively oversee and manage risks of fraud and corruption relating to them
  • have officials who are responsible for managing risks of fraud and corruption relating to them
  • periodically review the effectiveness of their fraud and corruption controls.

The following table provides a comparison between the key elements of the new Fraud and Corruption Rule, and the current Fraud Rule.

New Fraud and Corruption Rule (effective from 1 July 2024) Comparison with the current Fraud Rule (effective to 30 June 2024)
Entities must conduct fraud and corruption risk assessments regularly and when there is a substantial change in the structure, functions or activities of the entity The current Fraud Rule applies these requirements to fraud but not to corruption
Entities must develop and implement fraud and corruption control plans as soon as practicable after conducting a risk assessment The current Fraud Rule applies these requirements to fraud but not to corruption
Entities must periodically review the effectiveness of their fraud and corruption controls There is no equivalent requirement in the Fraud Rule. However, the updated Commonwealth Risk Management Policy 2023 has required entities to periodically review the effectiveness of controls since 1 January 2023 
Entities must have governance structures, processes and officials in place to oversee and manage fraud and corruption risks. Entities must keep records of those structures, processes and officials There is no equivalent requirement in the Fraud Rule. However, the updated Commonwealth Risk Management Policy 2023 specifies governance requirements

Entities must have appropriate mechanisms for preventing fraud and corruption by ensuring that:

  • entity officials are aware of what constitutes fraud and corruption, and
  • risks of fraud and corruption are taken into account in planning and conducting activities of the entity
The current Fraud Rule applies these requirements to fraud but not to corruption

Entities must have appropriate mechanisms for:

  • detecting fraud and corruption, including processes for officials of the entity and other persons to report suspected fraud or corruption confidentially; and
  • investigating or otherwise responding to fraud or corruption or suspected fraud or corruption; and
  • recording and reporting incidents of fraud or corruption or suspected fraud or corruption.
The current Fraud Rule applies these requirements to fraud but not to corruption

Additional resources

Information sheets

We have developed the following information sheets to help Commonwealth officials to understand and implement the new framework obligations.

Magnifying glass with exclamation mark

Information Sheet – Element 1: Fraud and corruption risk assessments

Learn more about how entities can better understand and document their exposure to fraud and corruption, the associated risks and existing control arrangements

Checklist with ticks in navy blue circle

Information Sheet – Element 2: Fraud and corruption control plans

Learn more about how entities can document, communicate, manage and monitor activities that manage an entity’s identified fraud and corruption risks

Checklist in green circle

Information Sheet – Element 3: Reviewing control effectiveness

Learn more about how entities can ensure controls are designed correctly and operate effectively to reduce or manage risks

Fraud and control framework element 4 icon

Information Sheet – Element 4: Governance and oversight

Learn more about how entities can help entities enhance integrity, accountability and quality of outcomes through appropriate governance and oversight

Padlock in blue circle

Information Sheet – Element 5: Preventing fraud and corruption – soon to be released

Learn more about different strategies and mechanism that entities can employ to prevent fraud and corruption

Security camera in blue circle

Information Sheet – Element 6: Detecting fraud and corruption – soon to be released

Learn more about different mechanisms that entities can employ to detect fraud and corruption

Checklist, persons headshot and magnifying glass in purple circle

Information Sheet – Element 7: Responding to fraud and corruption – soon to be released

Learn more about a range of actions entities can take to effectively respond to incidents of fraud and corruption

Book in orange circle

Information Sheet – Element 8: Recording and reporting fraud and corruption – soon to be released

Learn more about how entities can record, report and share information about fraud and corruption and use the information strategically

Implementation roadmap

We have developed this roadmap to provide officials with an example of a step-by-step approach to implementing the new framework elements.

View the Implementation roadmap

Webinars and training

We will continue to release additional resources including webinars and educational material to help entities prepare for the commencement of the new framework.

Check this page for updates, join our mailing list or contact info@counterfraud.gov.au for more information.

Registrations are now available for the following webinars:

  • Understanding the new Commonwealth Fraud and Corruption Control Framework – Policy Elements 1-4 
    Date: Wednesday 24 April 2024 (11:00 am – 12:00 pm AEST).
  • Understanding the new Commonwealth Fraud and Corruption Control Framework – Policy Elements 5-8 
    Date: Tuesday 30 April 2024 (11:00 am – 12:00 pm AEST).
  • Incorporating corruption control into risk management frameworks
    Date: Thursday 9 May 2024 (11:00 am – 12:00 pm AEST).

To register or find out more about these webinars, contact info@counterfraud.gov.au.

We also offer a Counter Fraud Practitioner Training Program for Commonwealth officials engaged in fraud and corruption control. The training program consists of 5 full day interactive sessions on:

  • Understanding and Communicating the Fraud Problem
  • Fraud Risk Assessment
  • Fraud Controls
  • Data in Fraud Control and Fraud Control Assurance
  • Fraud Control Investment.

To find out more or apply for upcoming training opportunities throughout 2024, contact info@counterfraud.gov.au.

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