Councils should have a fraud and corruption control framework which identifies and manages the risk of incidence of fraud or corruption and includes prevention and monitoring strategies.
The Independent Commission Against Corruption (ICAC) is responsible for investigating corruption in the NSW public sector (including in councils) and actively preventing it through advice and assistance. ICAC’s website provides a wide range of useful information about how councils can prevent, identify and manage corruption risks.
Since 2017, fraud prevention by NSW councils has been independently reviewed and reported on by the NSW Audit Office, as part of its external auditing and performance auditing responsibilities for local government. A link to the Audit Office’s report on its performance audit of fraud controls in councils is provided below. The NSW Audit Office has also issued a Better Practice Guide: Fraud Control Improvement Kit that provides useful guidance to councils when developing their fraud control framework.
Reporting suspected fraud or corruption
You should report suspected fraud or corruption, in the first instance, to your council through a recognised internal reporting mechanism. Your council’s fraud and corruption control policy or procedures should provide guidance on how to report suspected fraud or corruption.
You can also report fraud to the NSW Police and suspected corrupt conduct to the Independent Commission Against Corruption.
- NSW Audit Office – Better Practice Guide: Fraud Control Improvement Kit – PDF
- NSW Audit Office – Fraud Control in Local Councils (June 2018)
- Independent Commission Against Corruption – has many useful resources for councils on fraud and corruption control, including contact details for reporting
- NSW Ombudsman – has many useful resources for councils on public interest disclosures, including contact details for reporting serious wrongdoing