system consequences: assessing and monitoring the integrity of public officials seminar on integrity...
TRANSCRIPT
System consequences: assessing and monitoring the integrity of public officials
Seminar on Integrity in Public Administration & Management of Human Capital
Wednesday 15th October 2008: Mexico City
Peter DistonHead of Internal Fraud and Corruption Prevention
Brief Overview of HMRCCreated in 2005 as a result of a merger from:
• the Inland Revenue Service
• HM Customs and Excise.
Responsible for:
• Collecting and administering direct and indirect taxes - £457 billion in 2007-8.
• Responsible for paying out Child Benefit and Tax Credits – £30 billion in 2007-8.
• Government Banking.
• Valuation of property and land.
• enforcing customs and fiscal regimes inland and at sea and airports.
To deliver this:
• 90 000 staff
• 600+ offices nationally
• 42 separate business streams
Presentation Aims and ObjectivesTo give an overview of:
– HMRC Professional Standards Agenda
– how the integrity of HMRC employees is assured, controlled and monitored:
– individual level
– organisational level
– external level
– The classifications of conduct in relation to implementing and determining sanctions.
– HMRC’s operating framework for determining sanctions/ penalties.
HMRC: Professional Standards
Professional Standards is the behaviour and values expected to be displayed by all HMRC staff across all business functions at all time. It is consistent with the high ethical standards expected of our department and contained in the Civil Service Code.
Impartiality
Objectivity
Honesty
Integrity
Civil ServiceCode
For more information: http://www.civilservice.gov.uk/iam/codes/cscode/index.asp
Professional Standards Strategy
PeoplePolicies
&BehaviourStandards
Disciplinary Sanctions
Criminal Sanctions
Internal GovernanceHuman
Resources Function
Judicial System
Activities to pro-actively assure and control the integrity of HMRC Employees
Application Join Dept Job 1 Job 2 Leave Dept
Enhanced Basic Check
Employee’s Time in HMRC
Induction Training
Exit Procedures
SecurityVetting
Annual Review
Strategic Risk Assessment of Internal Fraud & Corruption
Communications & Ethics Awareness Training
Operational Security
Employee Self Declaration
Ind
ivid
ual
L
evel
Org
anis
atio
nal
L
evel
Strategic Risk Assessment of Internal Fraud & CorruptionProcess
• Stage 1: IG present process to Directorate SMTs (42).
• Stage 2: Business streams complete questionnaire.
• Stage 3: Verification of responses.
• Stage 4: Independent analysis of responses.
• Stage 5: Report issued to business.
• Stage 6: Development and implementation of a prevention plan – measurable controls and success indicators.
• Stage 7: Annual Review.
Main Benefits
• Standard methodology across organisation to evaluate risk from corruption/ wrong-doing.
• Highlight vulnerabilities either people of processes – target resources.
• Improved awareness of risks for senior and operational managers.
• Closer working between IG and business.
• Department wide view of risk from corruption/fraud.
…but sometimes assurance and controls are not enough – some
employees will inevitably choose to abuse their position of trust…
Activities to monitor the integrity of HMRC Employees
Application Join Dept Job 1 Job 2 Leave DeptEmployee’s Time in HMRC
ExternalComplaints
Third PartyInformation
GrievanceProcedure
With causealcohol/ drug
Testing*
Lawful Business Monitoring
ComputerAudit
Whistleblowing
Manager’sReferral
Bulk DataMatching*
* Currently under consideration
Classification of Misconduct
Level 2Gross Misconduct
Level 1Misconduct
Level 0Minor Misconduct
HMRC Disciplinary Sanctions FrameworkLevel of Offence
Nature of Offence Penalty
Misconduct
(local decision)
•First instance of an offence of Misconduct, or
•Where informal management action to improve an employee’s conduct has failed.
•First written warning (for 12 months)
•Repayment of money.
•Further Misconduct while a written warning is current, or
•Misconduct as sufficiently serious nature as to warrant a final written warning but not dismissal
•Final written warning (for 12 months – in exceptional cases longer but no longer than 3 years)
•Repayment of money.
Misconduct
(HR panel decision)
Further misconduct while a final written warning is current.
Dismissal with notice for misconduct
Other penalties short of dismissal include: a 5 year final written warning, an extension of existing final warning for the same period, plus one or more of the following:
–restriction on promotion
–downgrading
–financial penalty
–compulsory management move.
Gross Misconduct
(HR panel decision)
An offence that seriously damages the working relationship and trust between employer and employee, making them liable to dismissal without notice.
Dismissal without notice
Process for evaluating allegations of serious integrity breaches.
External Scrutiny: Evaluation & Monitoring of HMRC Employee’s Integrity
Evaluation
• Independent Police Complaints Commission.
• Revenue Adjudicators Office.
• Parliamentary Ombudsman.
Monitoring
• HM Treasury Fraud Return
• Freedom of Information.
• Parliament
– Public Accounts Committee
– Parliamentary Questions
Any Questions?
For further information:
Peter Diston | Head of Internal Fraud and Corruption Prevention | HM Revenue & Customs
Internal Governance | Room 4/49 | 100 Parliament Street | London | SW1a 2BQ00 44 207 147 2289 | 00 44 7799340065| [email protected]
Annex A: Misconduct ExamplesMisconduct
The following are examples of offences that can lead to disciplinary action being taken. The list, although comprehensive, is not exhaustive. Cases of Misconduct may lead to dismissal with notice but only if conduct does not improve despite a previous warning or warnings.
• Less serious instance of some of the offences listed as Gross Misconduct such as
– Insubordination
– Breach of the Health and Safety rules and procedures
– Failure to notify involvement in criminal proceedings
– Misuse of official equipment, premises, telephones, vehicles, computer facilities or stationery
– Neglect of duties
– Breaches of security
– Improper assistance to customers
– Unauthorised absence
– Less serious breaches of the rules on the use of Internet, Intranet, email
– Deliberate misrepresentation of results of performance and/or falsification of other official documents and/or records.
• Improper behaviour towards a member of the public, contractors etc
• Persistent lateness
• Misuse of flexible working hours systems such as frequently exceeding the end of period deficit
• Incapability to carry out official duties due to consumption of alcohol
• Repeated minor offences.
Gross Misconduct
• Theft, fraud, corruption, bribery or misappropriation.
• Bringing the Department into serious disrepute
• Any offence under any enactment for which the Department is responsible, such as smuggling
• A conviction, or caution, for any criminal offence that impairs the business of HMRC or the Civil Service or makes the jobholder unsuitable for work in the Department
• Selling or distributing pirate goods of any description at work, such as counterfeit DVDs
• Gross negligence or Gross neglect of duties
• Breach of confidentiality and/or privacy
• Misusing drugs, which includes
• Acceptance of gifts or hospitality from the public, traders and suppliers, other than the permissible exceptions
• Indecent or Grossly offensive conduct
• Fighting and/or assaults on colleagues
• Serious or persistent acts of discrimination, harassment or bullying
• Serious Insubordination
• Serious Breach of the Health and Safety Rules and Procedures
• Using the Department’s name or your official position to further your own interest or those of others
• Serious theft of official time
• Serious unauthorised absence
• Serious breaches of security
• Failure to notify involvement in criminal proceedings
• Misuse of Customer Records. This is where there is no proper, specific and legitimate business reason for doing so and includes
• Serious misuse of official premises, telephones, vehicles, computer facilities including