Despite 225 staff, the national training regulator has “partially effective” fraud controls, according to the Australian National Audit Office. Plus the Australian Skills Quality Authority has taken “minimal steps” to align with current Commonwealth fraud policy.
ASQA regulates 3,842 VET providers across the country, ex WA and Victoria where state agencies do it for themselves (ah federalism, aint it grand!)
ANAO reports that in May, the authority was “managing over 150 serious matters”, with half related to alleged fraud including bogus qualifications, cash for qualifications, fabrication of assessments and evidence and ghost colleges. However the audit office found “no evidence” of KPIs on “effectiveness and ability to respond potential instances of fraud.”
Overall the ANAO recommends the authority:
- ensures its fraud control roles and responsibilities “are current and commensurate: with existing Commonwealth governance
- update its policy and plan to “cover the full extent of its functions
- evaluate and monitor its processes for effectiveness of fraud control
The agency responded that it was on to the ANAO’s issues but Chief Executive Saxon Rice added, “ASQA’s regulatory functions go beyond protecting public resources from fraud and corruption and are focused on protection of vulnerable students and taking action against non-genuine providers.”
Nor is the ANAO entirely impressed with National Health and Medical Research Council processes on fraud for the 4,426 applications and 717 grants across its $898m program, plus the $626m it manages for the Medical Research Future Fund. This seems harsh given there were just three fraud allegations in 2023-24 last year, with one substantiated and one case on-going. But it isn’t surprising given the council does not oversee investigations by grant recipients. Plus, it has no staff qualified to conduct investigations and there is no plan for professional development of staff working in fraud control.
Among five ANAO recommendations are:
- commissioning independent assessment of grant recipient fraud risk controls
- ensuring NHMRC officials with fraud corruption risk remits have necessary skills and qualifications
- requiring grant recipients to report all allegations of fraud to the NHMRC.
The council agrees to all.
