Guidance: Option 1 Option 2 This Fraud Control Plan clause will allow the Customer to require a For high risk or high contracts where a Fraud Fraud Control Plan to be developed Control Plan clause is required, this clause by the Supplier. For high risk provides more certainty around what needs to be included and how the process will be managed contracts or where risk of fraud is throughout the term of the Contract. likely and/or value is significant, the Option 2 clause should be used A clause of this type would be included to manage potential fraud risks associated with performance of the contract, where the cost of the fraud control plan is commensurate with the scope and scale of the procurement. Generally, where this clause is used, inclusion of complementary clauses detailing a range of related requirements may be required. Related clauses may include: making good any Customer losses; consent for access to personal information to enable investigations; and a framework to establish appropriate investigation procedures into suspected incidents (i.e. the Supplier the Customer or independent party). Clause: Option 1 Option 2 Fraud Control Plan Fraud Control Plan Within one month of the Contract start date, the Supplier Within one month of the Contract must prepare a Fraud Control Plan that meets the start date, the Supplier must requirements of this clause and is otherwise consistent prepare a Fraud Control Plan that is with the Commonwealth Fraud Control Framework consistent with the available at Commonwealth Fraud Control 2 The Fraud Control Plan must: Framework available at and a. the entire Contract, including any part of the provide a copy of the Fraud Control Contract being performed by any subcontractor or Plan to the Customer. other person or under any other arrangement The Supplier must review and established by the Supplier relating to the Contract; update the Fraud Control Plan at and least every six months during the b. contain appropriate prevention, detection, term of the Contract, or whenever investigation, reporting and audit processes and there is a significant change in the procedures. structure or activities of the 3 At a minimum the Control Plan must: Supplier. The Supplier must a. include a summary of fraud risks and vulnerabilities provide the Customer with details associated with the Contract, of any review and a copy of any b. propose treatment strategies and controls to update to the Fraud Control Plan. manage each identified fraud risk and vulnerability,
Guidance: Option 1 Option 2 This Fraud Control Plan clause will allow the Customer to require a Fraud Control Plan to be developed by the Supplier. For high risk contracts or where risk of fraud is likely and/or value is significant, the Option 2 clause should be used For high risk or high contracts where a Fraud Control Plan clause is required, this clause provides more certainty around what needs to be included and how the process will be managed throughout the term of the Contract. A clause of this type would be included to manage potential fraud risks associated with performance of the contract, where the cost of the fraud control plan is commensurate with the scope and scale of the procurement. Generally, where this clause is used, inclusion of complementary clauses detailing a range of related requirements may be required. Related clauses may include: making good any Customer losses; consent for access to personal information to enable investigations; and a framework to establish appropriate investigation procedures into suspected incidents (i.e. the Supplier the Customer or independent party). Clause: Option 1 Option 2 Fraud Control Plan Within one month of the Contract start date, the Supplier must prepare a Fraud Control Plan that is consistent with the Commonwealth Fraud Control Framework available at and provide a copy of the Fraud Control Plan to the Customer. The Supplier must review and update the Fraud Control Plan at least every six months during the term of the Contract, or whenever there is a significant change in the structure or activities of the Supplier. The Supplier must provide the Customer with details of any review and a copy of any update to the Fraud Control Plan. Fraud Control Plan Within one month of the Contract start date, the Supplier must prepare a Fraud Control Plan that meets the requirements of this clause and is otherwise consistent with the Commonwealth Fraud Control Framework available at 2 The Fraud Control Plan must: a. the entire Contract, including any part of the Contract being performed by any subcontractor or other person or under any other arrangement established by the Supplier relating to the Contract; and b. contain appropriate prevention, detection, investigation, reporting and audit processes and procedures. 3 At a minimum the Control Plan must: a. include a summary of fraud risks and vulnerabilities associated with the Contract, b. propose treatment strategies and controls to manage each identified fraud risk and vulnerability,
CommonwealthStandardTerms-v6.docx