The Commonwealth Ombudsman has called on the Child Support Agency to improve its fraud control procedures after an investigation revealed the CSA did not have a workable plan to detect, investigate and prevent fraud. According to the Ombudsman, Professor John McMillan, the integrity of the child support scheme hinged on the reliability of the evidence used to assess child support obligations and it was incumbent on the CSA to ensure the evidence was accurate and substantiated. In his report, Responding to Allegations of Customer Fraud, Professor McMillan said the CSA’s fraud control plan “does not adequately manage the risks associated with customer fraud”. He said the plan, which had been implemented in 2006, focused almost exclusively on the risks posed by internal staff fraud.
Child Agency urged to tighten up
Professor McMillan said complaints to the Ombudsman’s office suggested the CSA did not regard investigating and prosecuting customer fraud as an efficient use of its resources. He said it was “important that the CSA review its policies and practices concerning customer fraud allegations. “False or misleading information can result in children and supporting parents being seriously disadvantaged by a CSA assessment,” he said. “The investigation of CSA complaints discussed in this report indicates that some CSA frontline staff do not understand the importance of this preliminary assessment role.” Professor McMillan said in response to some allegations, staff had suggested administrative means to address the dispute, that the person making the allegation take legal action, or promised to look into it without the intention of doing so. One complaint discussed in the report was made by a mother who believed her former husband had provided the CSA with incorrect pay slips as proof of his income. The report found the CSA did not conduct any meaningful investigation into her allegation, and relied on the pay slips as evidence to assess his child support payments. After taking Court action against her former spouse, it was discovered she had paid thousands of dollars of child support she was not liable to pay. Professor McMillan made five recommendations in his report, all of which were agreed to at least in part by the CSA. He recommended the CSA review its Fraud Control Plan to manage customer fraud risks; develop new fraud allegation procedures for staff; educate staff about identifying cases for referral to the Director of Public Prosecutions; consider further action regarding the mother who complained about forged pay slips; and educate staff on authenticating documents and investigating contradictory evidence. During the investigation, the Minister for Human Services, Senator Joe Ludwig, told the Ombudsman the CSA was developing new arrangements for investigating customer fraud that included an increased emphasis on criminal investigation and prosecution. Senator Ludwig, thanked Professor McMillan for his report, saying he expected any evidence of deliberate fraud to be referred to the Commonwealth DPP “I am committed to a tough compliance strategy that ensures all paying parents meet their child support obligations in full and on time,” Senator Ludwig said.
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