System consequences: assessing and monitoring the integrity of public officials

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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

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Brief Overview of HMRC

• Created 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

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Presentation Aims and Objectives

• To 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.
• HMRCs operating framework for determining
  sanctions/ penalties.

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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.

For more information http//www.civilservice.gov.
uk/iam/codes/cscode/index.asp
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Professional Standards Strategy
People Policies Behaviour Standards
Internal Governance
Human Resources Function
Judicial System
Disciplinary Sanctions
Criminal Sanctions
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Activities to pro-actively assure and control the
integrity of HMRC Employees
Strategic Risk Assessment of Internal Fraud
Corruption
Organisational Level
Operational Security
Communications Ethics Awareness Training
Employees Time in HMRC
Job 2
Leave Dept
Application
Join Dept
Job 1
SecurityVetting
Exit Procedures
Individual Level
Enhanced Basic Check
Induction Training
Annual Review
Employee Self Declaration
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Strategic Risk Assessment of Internal Fraud
Corruption

• Process
• 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.

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but sometimes assurance and controls are not
enough some employees will inevitably choose to
abuse their position of trust
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Activities to monitor the integrity of HMRC
Employees
Computer Audit
GrievanceProcedure
Bulk Data Matching
With causealcohol/ drug Testing
Employees Time in HMRC
Join Dept
Job 2
Leave Dept
Application
Job 1
ManagersReferral
Whistleblowing
Third PartyInformation
Lawful Business Monitoring
ExternalComplaints
Currently under consideration
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Classification of Misconduct
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HMRC Disciplinary Sanctions Framework
Level of Offence Nature of Offence Penalty Penalty
Misconduct (local decision) First instance of an offence of Misconduct, or Where informal management action to improve an employees conduct has failed. First written warning (for 12 months) Repayment of money. First written warning (for 12 months) Repayment of money.
Misconduct (local decision) 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. 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 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.
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Process for evaluating allegations of serious
integrity breaches.
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External Scrutiny Evaluation Monitoring of
HMRC Employees 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

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• 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 peter.diston_at_hmrc.gsi
  .gov.uk

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Annex A Misconduct Examples

• Misconduct
• 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 Departments 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