Senior Aboriginal Legal Service lawyer Paul Tobin acquitted of perverting course of justice

Audit of the NIAA by the Australian National Audit Office 2023.

National Indigenous Australians Agency’s management of provider fraud and non-compliance.
30 MAY 2023
Australian National Audit Office
PUBLISHER
Australian National Audit Office
Financial risks, Government grants, Statutory authorities Compliance with law. Australia
RESOURCES
National Indigenous Australians Agency’s management of provider fraud and non-compliance      
DESCRIPTION
The National Indigenous Australians Agency (NIAA) is an executive agency under section 65 of the Public Service Act 1999 and is a non-corporate Commonwealth entity as defined by the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The NIAA is the lead entity for the Commonwealth policy development, program design, implementation and service delivery for Aboriginal and Torres Strait Islander peoples.

In a December 2022 program compliance and fraud management framework, the NIAA stated that it has a low tolerance for minor or careless ongoing non-compliance with grant agreements by providers, particularly where it impacts or disrupts services to the community.

In a December 2020 Risk Management Policy, the NIAA stated that it has a zero tolerance for criminal activity and breaches of the law, including dishonest, fraudulent or corrupt behaviour.

The Commonwealth Fraud Control Framework 2017 and the Commonwealth Grant Rules and Guidelines 2017 (CGRGs) require Australian Government officials to consider fraud risks throughout the grants management lifecycle.

The objective of the audit was to assess the effectiveness of the NIAA’s management of provider fraud and non-compliance risks.

Key findings:

The NIAA’s management of provider fraud and non-compliance risks is partly effective.

The NIAA’s frameworks for managing provider fraud and non-compliance are not fully fit-for-purpose.

There is a risk management framework and a risk-based conceptual approach for managing provider fraud and non-compliance risks.

The frameworks for managing fraud and provider non-compliance do not fully comply with legislation or the NIAA’s internal policies.

Elements of the provider fraud and non-compliance framework, such as the underlying policies and procedures, are not always aligned.

There are weaknesses in the design and implementation of governance and assurance mechanisms.

The NIAA’s arrangements for the prevention, detection and referral of potential provider fraud and non-compliance are partly effective.

Prevention is not consistently or sufficiently considered in grant design and planning, and training is out of date.

Detection relies primarily on complaints being raised and arrangements to deal with complaints are appropriate.

Proactive detection controls are not sufficiently implemented. Referral and escalation arrangements exist, however these require greater clarity.

Different organisations.  Tsk, tsk, tsk...