34. In the most recent incident of fraud or corruption within your organisation that you are aware of, the main perpetrator(s) was?
Public Sector Fraud Awareness Survey - Findings: Incidents of fraud.
Observation:
PwC comment:
Internal fraud continues to be a significant risk for all organisations. This is because staff know the organisation, know the systems and processes, know the weaknesses and are trusted.
Of the 22.5% of respondents who were aware of at least one incident of fraud in their organisation, 77.4% reported that the main perpetrator came from within the organisation.
This was consistent across Central Government (76%), Local Government (83%) and Schools (71%).
Respondents indicated the main perpetrator was an operational staff (46%) or administration/support service person (22%).
| Internal (within the organisation) |
External (outside the organisation) |
A combination of external and internal (i.e. collusion) |
Don’t know | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Central Government | |||||||||
| Autonomous Crown Entities | 5 | 50% | 5 | 50% | 0 | 0% | 0 | 0% | 10 |
| Central Government - Other | 9 | 90% | 1 | 10% | 0 | 0% | 0 | 0% | 10 |
| Crown Agents or Companies | 17 | 68% | 3 | 12% | 4 | 16% | 1 | 4% | 25 |
| Crown Research Institutes | 2 | 100% | 0 | 0% | 0 | 0% | 0 | 0% | 2 |
| District Health Boards | 17 | 68% | 5 | 20% | 1 | 4% | 2 | 8% | 25 |
| Government Departments | 48 | 83% | 4 | 7% | 2 | 3% | 4 | 7% | 58 |
| Independent Crown Entities | 1 | 50% | 0 | 0% | 0 | 0% | 1 | 50% | 2 |
| Māori Trust Boards | 2 | 67% | 0 | 0% | 1 | 33% | 0 | 0% | 3 |
| Rural Education Activities Programmes | 0 | 0% | 0 | 0% | 0 | 0% | 2 | 100% | 2 |
| State-Owned Enterprises | 13 | 68% | 3 | 16% | 3 | 16% | 0 | 0% | 19 |
| Tertiary Education Institutions | 29 | 88% | 2 | 6% | 2 | 6% | 0 | 0% | 33 |
| Sub-Total | 143 | 76% | 23 | 12% | 13 | 7% | 10 | 5% | 189 |
| Internal (within the organisation) |
External (outside the organisation) |
A combination of external and internal (i.e. collusion) |
Don’t know | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| Local Government | |||||||||
| Airports | 2 | 33% | 1 | 17% | 2 | 33% | 1 | 17% | 6 |
| Council Controlled Organisations or Council Controlled Trading Organisations | 11 | 79% | 0 | 0% | 3 | 21% | 0 | 0% | 14 |
| Energy Companies | 12 | 86% | 0 | 0% | 2 | 14% | 0 | 0% | 14 |
| Fish and Game Councils | 1 | 100% | 0 | 0% | 0 | 0% | 0 | 0% | 1 |
| Licensing and Community Trusts | 6 | 100% | 0 | 0% | 0 | 0% | 0 | 0% | 6 |
| Local Authorities | 55 | 86% | 4 | 6% | 3 | 5% | 2 | 3% | 64 |
| Local Government - Other | 0 | 0% | 0 | 0% | 0 | 0% | 0 | 0% | 0 |
| Port Companies | 0 | 0% | 0 | 0% | 0 | 0% | 0 | 0% | 0 |
| Sub-Total | 87 | 83% | 5 | 5% | 10 | 10% | 3 | 3% | 105 |
| Schools | 27 | 71% | 6 | 16% | 2 | 5% | 3 | 8% | 38 |
| Total | 257 | 77% | 34 | 10% | 25 | 8% | 16 | 5% | 332 |
Observation:
Of the 22.5% of respondents who were aware of at least one incident of fraud in their organisation, the size of organisation did not make it any more or less susceptible to internal fraud.
