Objective To determine whether local councils' fraud and corruption controls are well designed and operating as intended.
Issues Fraud is dishonest activity involving deception that causes actual or potential financial loss by an entity or others. Corruption is dishonest activity in which an employee of an entity acts contrary to its interests, abusing his or her position of trust to achieve personal gain or advantage.
Investigations by the Independent Broad-based Anti-corruption Commission, together with various performance audits, have found that agencies have not consistently applied the integrity systems intended to control fraud risks, and that these systems require regular testing.
Our 2012 audit report Fraud Prevention Strategies in Local Government concluded that the five councils we examined had not effectively managed their exposure to fraud risk, as none had developed a strategic and coordinated approach to controlling fraud.
This audit will examine whether councils have well-designed fraud and corruption controls, and the extent to which these controls are operating as intended. This audit is part of an annual series of fraud and corruption audits that will each focus on different issues and agencies.
Proposed agencies Greater Shepparton City Council, Strathbogie Shire Council, Wellington Shire Council, Wyndham City Council