Attribute 8: External Notification

The Need for Proper Definition and Control of External Interaction

No organisation is an island. This is particularly the case in the public sector where legislation imposes various requirements and where numerous external bodies with significant powers of scrutiny may have ongoing interests in or involvement with an agency. Without having given proper thought to the appropriate policies and protocols to be applied in this area confusion and inconsistency can occur, leading in some cases to significant oversights or errors.

Only 33% of agencies surveyed rated as "good" or better in this regard. At the least this could cause considerable embarrassment to an agency. At worst, breaches of significant requirements could occur which may carry serious ramifications.

Chief executives must be clear that there is no discretion in the reporting of fraud to either the Police or the Independent Commission Against Corruption.

The following information on selected external bodies is provided as a general guide only. External reporting and other statutory and policy requirements may change at any time. Agencies should monitor such matters and modify their policies in this area as necessary.

Independent Commission Against Corruption

The principal officer of each agency has a duty to report to the Independent Commissioner Against Corruption any matters that, on reasonable grounds, concerns or may concern corrupt conduct.

Corrupt conduct is defined in quite extensive and broad terms by Sections 7, 8 and 9 of the Independent Commission Against Corruption Act, 1988 (ICAC Act). An extract of those sections from the ICAC Act is provided at Appendix 8.

To assist agencies in satisfying their obligations for reporting under the ICAC Act, the Commission has issued Guidelines for the Reporting of Possible Corrupt Conduct to the Commission.

Amongst other things the ICAC guide defines reporting criteria and the form of report to be used. Rather than repeat such information here a full copy of the gazetted version (October 1990) of that guide has been included for reference purposes at Appendix 9.

The ICAC releases a variety of publications and from time to time may set out principles or suggested approaches for agencies in terms of dealing with corruption generally. Agencies should monitor and review such material to ensure they stay up to date with any changes and developments.

Police Service

All agencies have an obligation to inform the Police of the occurrence of fraud. There is no discretion in this matter.

For agencies subject to the requirements of the Public Sector Management Act, the Personnel Handbook - Public Service of NSW (the Personnel Handbook) states in Division 3 Part 2 Section 2.3.6 that:

where a department reasonably believes that an officer has committed a criminal offence (emphasis added), the matter should be referred to the police.

Section 316 of the Crimes Act of 1900 provides that anyone who:

knows or believes that the (an) offence has been committed ... and without reasonable excuse fails to bring that information to the attention of a member of the Police Force or other appropriate authority ... is liable for imprisonment for two years

Auditor-General

All public sector agencies subject to the requirements of the Public Finance and Audit Act have an obligation to report discrepancies of serious proportions to the Auditor-General as they may affect the annual audit and certification of the agency's financial statements.

Early notification will allow the auditor to reappraise the conduct of the audit. Late or no notification could result in an unfavourable audit result or delay signing of the financial statements.

Others

Contact with other external bodies may also be required or beneficial under certain circumstances. Such bodies could include the Crown Solicitor, Ombudsman or Director of Public Prosecutions. Policy should be developed to set out circumstances and protocols to apply. Small agencies without the benefit of in house legal advice may need to maintain a closer contact with various external bodies than the larger agencies.