To ask the Minister of Finance to detail the Executive’s fraud adverse measures.

There are various measures in place across the Public Sector to detect, report and prevent fraud.

Managing Public Money Northern Ireland (MPMNI) provides guidance to departments and their Arm’s Length Bodies (ALBs) on preventing, countering and dealing with fraud, and all departments are required to develop anti-fraud strategies, including the following measures:

Developing a Fraud Policy Statement and a Fraud Response Plan;

Developing and promoting an anti-fraud culture;

Allocating responsibilities for the overall management of fraud risk;

Establishing cost-effective internal controls to detect and deter fraud;

Developing the skills and expertise to manage fraud risk effectively;

Establishing well publicised avenues for staff and members of the public to report their suspicions of fraud;

Responding quickly and effectively to fraud when it arises;

Establishing systems to monitor the progress of investigations;

Tracking all fraud cases and drawing on Internal Audit experience to strengthen control to prevent repetition;

Taking appropriate action (criminal, disciplinary) against fraudsters and seeking to recover losses;

Continuously evaluating the effectiveness of anti-fraud measures; and

Working with stakeholders to tackle fraud through intelligence sharing, joint investigations, etc. and the results of data matching under the National Fraud Initiative.

In addition to MPMNI, guidance is also available to departments on managing the risk of fraud, tackling external fraud, and raising concerns, as well as general guidance on good corporate governance.

NICS departments are required to report immediately, to the Department of Finance (DoF) and the C&AG, all frauds (proven or suspected), including attempted fraud, which affect their departments or the agencies and ALBs sponsored by them. Departments are also required to submit an annual return to DoF in respect of each financial year, giving details of all discovered cases of suspected and proven fraud (including attempted fraud). These departmental annual returns then form the basis of the Annual Theft and Fraud Report, which is published each year.

NICS departments also have departmental Fraud Working Groups, who meet regularly to consider issues in relation to fraud, raise awareness of anti-fraud measures and disseminate information pertinent to the prevention and detection of fraud.

DoF are committed to working with departments and our colleagues in the NIAO to ensure a coordinated approach to fraud prevention and management is implemented across the public sector.

A NICS Fraud Forum was established in March 2005 as a best practice advisory group. The Forum is chaired by the Treasury Officer of Accounts (DoF) and includes departmental, PSNI and NIAO representation. The group meets 2-3 times per year and is responsible for developing practical ways to promote an anti-fraud culture using existing best practice from within departments and other sources. A representative from the NICS Fraud Forum also attends the Criminal Finances Sub Group of the Organised Crime Task Force (OCTF), ensuring there is an appropriate link between the work of the OCTF and the NICS Fraud Forum.

Whilst responsibility for the detection and prevention of fraud lies with departmental management, Internal Audit also have a role in considering fraud risks when carrying out reviews, and the Fraud Investigation Team of Group Internal Audit and Fraud Investigation Services will conduct investigations (at the request of management) once a fraud has been identified.