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CIPFA Code of Practice for counter fraud

The CIPFA Code of Practice on Managing the Risk of Fraud and Corruption sets out the principles that define the governance and operational arrangements necessary for an effective counter fraud response.

Published in October 2014, the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption is applicable to all public services organisations.

The code is comprised of five key principles, which are to:

  • acknowledge the responsibility of the governing body for countering fraud and corruption
  • identify the fraud and corruption risks
  • develop an appropriate counter fraud and corruption strategy
  • provide resources to implement the strategy
  • take action in response to fraud and corruption.

Benefits

The code:

  • offers a clear framework for developing and maintaining an effective counter fraud response
  • is a useful tool for leaders to assess their resilience and capacity to tackle fraud
  • is designed to be adopted at board level to guide future counter fraud strategy
  • includes the activities and steps you can take to ensure the principles are actively upheld.
The code builds on previous guidance, Managing the Risk of Fraud: Actions to Counter Fraud and Corruption 2008, known as the Red Book, and is supported by two products:

Guidance notes

The code is underpinned by a set of guidance notes that explain the importance of the principles and how they can be applied in practice. 

The notes feature tips on relating the code to the different governance frameworks in operation in the public services. The notes will be particularly useful to organisations that are looking to improve the effectiveness of their counter fraud arrangements.

If your organisation subscribes to the Counter Fraud Centre, you can download the guidance notes free of charge (you will need to log into the website to access them).  

Alternatively, you can buy them here

Assessment tool and benchmarking report

We have developed an accessible and easy to use Assessment Tool that measures your counter fraud arrangements against the code of practice. 

The Tool:

  • evaluates your performance against the Counter Fraud Code of Practice
  • generates reports and graphs to illustrate your performance against the code
  • includes examples of good practice to help inform your assessment
  • records comments, providing a robust evidence base for the assessment
  • enables you to track your and your team’s progress
  • supports your Annual Governance Statement (AGS) and informs your development plans.

The Assessment Tool works by helping you to identify where your organisation’s strengths lie and where remedial action may be needed. 

It also allows you to benchmark your organisation against others, giving you an invaluable insight into the experience of your peers.

Local authorities will find the Tool and benchmarking report particularly useful when preparing their AGS, which must include an evaluation of the adequacy of their counter fraud arrangements.

Watch our video to see how the Tool works.

Download a sample benchmarking report to see the breadth of information included.

If your organisation subscribes to the Counter Fraud Centre, you will be sent your bespoke assessment tool on joining the Centre.

Alternatively, you can purchase the Assessment Tool here


Our Experts

Diana Melville

Diana Melville

Governance Advisor

Diana is the lead advisor for the CIPFA Better Governance Forum and is CIPFA’s representative on the Internal Audit Standards Advisory Board. She is a CIPFA qualified accountant and is also a member of the Chartered Institute of Personnel and Development. Prior to joining CIPFA in 2008 she was head of internal audit at Salisbury Council and held other audit roles in local government and at the National Audit Office.


She has authored the 2018 edition of Audit Committees, Practical Guidance for Local Authorities and Police and co-developed the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014). She was part of the CIPFA working group that developed the Good Governance Framework for Local Government (2016) and supports other CIPFA policy initiatives and publications on governance, internal audit and counter fraud.
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Code of Practice

The Code of Practice sets out the principles that define the governance and operational arrangements necessary for an effective counter fraud response.

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Related Products

Subscribe to the CIPFA Counter Fraud Centre

Subscribing is the most cost effective way to access the tools, alerts and resources needed to combat fraud in the public services.

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Counter Fraud Code of Practice Assessment Tool

CIPFA's Counter Fraud Code of Practice Assessment Tool.

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