Fraud Survey

In a report released today, the NSW Auditor-General, Margaret Crawford provides a snapshot of reported fraud in the NSW public sector and an analysis of NSW Government agencies’ fraud controls based on a survey of 102 agencies.

The survey found that:

  • the total number of reported fraud cases is nearly double that of a similar survey conducted in 2012. Agencies reported 1,077 frauds in this survey compared to 562 in the previous survey, with a total reported value of $10 million. The largest frauds are in procurement

  • measures to control fraud are improving. Agencies self-assessed their fraud control measures as either highly effective or effective in 83 per cent of cases – up from 80 per cent in 2012, 71 per cent in 2009 and 50 per cent in 2004.

‘The report highlights issues and opportunities for agencies to improve their fraud control. Also, instituting a fraud control policy for New South Wales will help promote best practice and a common approach to fraud control across the sector’, Ms Crawford said.

Fraud awareness training and preventative fraud controls, such as fraud risk assessments and pre-employment screening, remain areas for improvement.

The Auditor-General recommends NSW Treasury develop fraud control policy for the NSW public sector that:

  • explicitly states the government’s commitment to fraud control
  • clearly articulates the government’s expectations of agencies to develop and implement fraud control measures.

The profile of the average internal perpetrator is male, between 41-50 years old, holding a non-managerial position and working for the agency for more than five years.

Further information

Please contact Barry Underwood on 9275 7220 or 0403 073 664; email barry.underwood@audit.nsw.gov.au