Preventing and Managing Fraud and Corruption in the UK Public - - PowerPoint PPT Presentation

Preventing and Managing Fraud and Corruption in the UK Public Sector

Bill Burnett – Adam Smith International

The focus in the UK is on prevention. A number of players have a role to play:  The Executive

 Ministers  Accounting Officers – the most senior civil servant in an organisation  Individual Public Servants

 Internal Audit

 Government Internal Audit Agency  Audit Committees

 External Audit

 The National Audit Office  The Public Accounts Committee

The Key Players

 Applicable to all Ministers and civil servants. Forms the basis for the disciplinary codes that apply to Ministers and civil servants.  Selflessness  Integrity  Objectivity  Accountability  Openness  Honesty  Leadership

The 7 Principles of Public Life

 Ministers – The Ministerial Code

 Determine policy  Propose legislation  Must listen to Accounting Officers on issues relating to the proper conduct of public business

 Accounting Officer

 Senior civil servant within the organisation personally responsible for maintaining internal control systems, producing financial statements and risk management  Responsible to parliament for stewardship of public money  Minister can direct Accounting Officer

 Individual Public Servants

Management Responsibilities

 Centralised internal audit agency within the Treasury (Ministry of Finance) – sets strategy, methodology and provides training and guidance (around 600 auditors)  Based within each Ministry and Agency including a Head of Internal Audit  Audit reports sent to appropriate Audit Committees  National Audit Office also has access to the reports  Management respond to report recommendations  Head of Internal Audit provide an annual opinion to the Accounting Officer on the overall adequacy and effectiveness of the organisation’s governance, risk management and control processes.

Internal Audit - Government Internal Audit Agency

 Within each Ministry, Agency, local government body  Advises the Accounting Officer on:

 the internal audit strategy and periodic internal audit plans,  the adequacy of the resources available to internal audit  the internal audit charter, or terms of reference, for internal audit  the results of internal audit work  the annual internal audit opinion and annual report; and  the performance of internal audit, including conformity with the applicable standards and performance measures

 No executive responsibilities

Internal Audit – Audit Committees

 Audits financial statements of all government ministries and agencies annually  Undertakes 60 value for money audits each year  Reports to entities and parliament on outcome of this work  Review of Internal Control systems  Reviews of Internal Audit  VFM reports  Around 700 auditors

External Audit – The National Audit Office

Structural  senior management actively encourage and support co-

• peration

 there is an appropriately constituted audit committee taking active interest in internal and external audit issues and encouraging co-operation  opportunities for co-operation are identified from respective audit plans, and documented along with the agreed procedures for co-operation Behavioural  there is regular and structured dialogue between interested parties, particularly internal and external audit teams  both sets of auditors adopt an active role in seeking

• pportunities for co-operation

 Cooperative, Supportive, Professional Respectful

Relationship Between Management, Internal and External Audit

 deals specifically with work of the National Audit Office and in particular Value for Money reports  chaired by member of the main opposition party  takes evidence from Accounting Officers not Ministers  Government required to respond within 3 months with action plan for implementation  National Audit Office carries out follow-up work and reports back to Committee on progress

Public Accounts Committee

 Mis-management of public funds and breaches of Codes – internal disciplinary procedures which can lead to pay reduction, demotion, dismissal depending upon seriousness  Suspected fraud and corruption reported to criminal authorities – police, serious fraud office, national crime agency depending upon seriousness and nature

• f alleged offences

Dealing with Mis-management, Fraud and Corruption