Ethics & Fraud Awareness Powerpoint

Ethics & Fraud
Force Preservation Awareness
Training Package
Module 6
Sponsored by AHQ and produced by DASA

Scope
• Values and Key definitions
• Ethical decision making
• Individual responsibilities and penalties
• Preventing and combating fraud
• Defence Whistleblower Scheme

Army Values
Courage
Initiative
Teamwork

Defence Values
• Professionalism
• Loyalty
• Integrity
• Courage
• Innovation
• Teamwork

Ethics
Ethics is a set of principles by
which your actions may be
judged good or bad, right or
wrong.
- Macquarie Dictionary

Ethics continued
“A good name, like good will, is got
by many actions and lost by one.”
Lord Francis Jeffrey
(Scottish judge and literary critic, 1773-1850)

Ethical Issues
– Competing values
– Conflict of Interest
“…any situation where there is, or may
appear to be, a conflict between your
personal interests and your public duties
and responsibilities.”

Decision Making Framework
• REcognise a potential issue
• Find relevant information
• Linger at the ‘fork in the road’ and pause
to consult
• Evaluate the options
• Come to a decision, act and make a
record
• Take time to reflect and review

Use of Army Resources
Proper use means:
• Efficient,
• Effective,
• Economical, and
• Ethical use that is not inconsistent with
the policies of the Commonwealth
Financial Management and Accountability Act
1997

Financial Compliance
• Army personnel must comply with Financial Accountability
Act & Regulations.
• Internal and external assurance processes identified Army
is not consistently complying with the legislation, or
reporting non-compliances.
• This represents a risk to Army’s reputation and can result
in disciplinary action being taken against those
responsible for breaches.
• The Top Ten of Financial Management Compliance
support Army personnel complying with the legislation.

Financial Compliance (Con’t)
1. Don’t spend without delegate approval.
2. Before approving expenditure, make sure
you have the delegation to do so.
3. Record all delegate approvals in writing.
4. Don’t approve blank spending proposals.
5. Don’t exceed the approved amount.

Financial Compliance (Con’t)
6. Don’t make purchases without seeking
appropriate quotations (usually three).
7. If you must ‘sole source’, make sure you
document your justification.
8. Purchases over $10,000 are recorded in
AusTender.
9. Don’t misuse a DPC or DTC.

Financial Compliance (Con’t)
10. If you are proposing to spend money in
a future year, seek approval to do so from
the Army FMA Reg 10 delegate

Waste -
Abuse -
Waste and Abuse
extravagant or needless use of
Defence resources
deliberate misuse of Defence
resources

The definition of fraud
“Dishonestly obtaining a benefit or
causing a loss by deception or other
means.”
- Commonwealth Fraud Control Guidelines, 2011

Fraud in Army
• Entitlement to Rental Allowance
• Entitlement to Other Allowances
• Defence Travel Card
• Loss or Theft of Military Equipment or Kit
• Loss or Theft of General Property (inc cash)
• Payment of Employer Support Payment

Defence Travel Card
• Approved Travel Budget
Calculator
• Keep appropriate
records
• Keep card and PIN
secure and separate
• DO NOT use the card as
a personal loan facility

Consequences for Army:
Increased Parliamentary scrutiny
Reduced safety of Army and Defence personnel
or equipment
Loss of resources, e.g. money and / or
equipment
Loss of goodwill from Defence Industry

Consequences for the individual:
Investigation which may result in:
• a penalty ranging from reprimand to
termination of employment; and/or
• loss of security clearance
• Prosecution by the CDPP in a civil criminal
court

Combating Fraud
What can you do to prevent losing
Defence resources

Dealing with Fraud
• Prevention
• Training
• Detection
• investigation
• prosecution - civilian criminal courts
• administrative action
• recovery

Type 2 incident:
Notifiable Incidents
DI(G) Admin 45-2
“...raises a reasonable suspicion that a civilian
criminal offence has been committed...”
This can include, but is not limited to:
• theft
• fraud
• misappropriation
• false statements
• falsification of
documents and records

Defence Whistleblower Scheme
To report alleged fraud contact the
Whistleblower hotline:
1800 673 502
IG.investigations@defence.gov.au

Contacts
For more information about fraud and ethics
visit: http://intranet.defence.gov.au/ig/
or send an email to:
ethics.training@defence.gov.au

Key points:
• Army Values
• Appropriate use of Commonwealth resources
• Ethics
• Fraud issues
• Your responsibilities