S ystem consequences: assessing and monitoring the integrity of public officials

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 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

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. • 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. For more information:http://www.civilservice.gov.uk/iam/codes/cscode/index.asp

Professional Standards Strategy People Policies& Behaviour Standards Internal Governance Human Resources Function Judicial System Disciplinary Sanctions Criminal Sanctions

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 Employee’s Time in HMRC Job 2 Leave Dept Job 1 Application Join Dept SecurityVetting Exit Procedures Individual Level Enhanced Basic Check Induction Training Annual Review Employee Self Declaration

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.

…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 Computer Audit Bulk Data Matching* GrievanceProcedure With causealcohol/ drug Testing* Employee’s Time in HMRC Join Dept Job 2 Leave Dept Job 1 Application Manager’sReferral Whistleblowing Third PartyInformation Lawful Business Monitoring ExternalComplaints * Currently under consideration

Classification of Misconduct

HMRC Disciplinary Sanctions Framework

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

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 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 Annex A: Misconduct Examples

S ystem consequences: assessing and monitoring the integrity of public officials