Governance & Communications Portfolio Report - 18 May 2016

Governance & Communications

Fraud and Corruption Prevention Management Framework

In June 2015 the Queensland Audit Office prepared a report under Part 3 of the Auditor-General Act 2009, titled ‘Fraud Management in Local Government’. The report identified that most councils are not effectively managing their fraud risks. The report made recommendations that:

1. The Department of Infrastructure, Local Government and Planning pursue amendment of the Local Government Regulation 2012 to require:

• loss as a result of fraud to be a reportable loss to the Auditor-General and to the Minister responsible for local government
• councils to keep written records of alleged and proven losses arising from fraud.

2. All councils assess themselves against the findings in this report as a priority and where needed develop, revise or update their:

• policies and procedures for fraud and corruption management
• fraud and corruption control plans
• fraud risk assessments
• data analytics capability for fraud detection

Further to this report, the Department has made the recommended amendments to the Local Government Regulation 2012.

Council is committed to acting in the best interest of the community and upholding the principles of honesty, integrity and transparency. Council operates as an organisation in which ethical conduct is expected, encouraged and supported with no tolerance for corrupt conduct, fraudulent activities or maladministration. Risk management principles and matching fraud and corruption prevention measures are applied across all areas of Council operations to protect the assets and resources of Council.

Council is currently finalising the Fraud and Corruption Prevention Management Framework which will encompass a policy (tabled at the Council meeting today for adoption), a control plan as well as prevention / detection / reporting / risk assessment and monitoring procedures.