An audit of the Department of Defence's investigation and misconduct management processes has revealed that a public servant was required to repay approximately $14,800 after being found to have committed timesheet fraud.

The employee was investigated in 2023, with Defence's human resources branch determining that the individual breached the Australian Public Service Code of Conduct.As a result, a salary reduction sanction was imposed and the debt was fully recovered by August 2024.

However, auditors noted that the debt calculation may not have captured the full financial impact because it excluded potential benefits obtained through the fraudulent claims, such as superannuation contributions and leave entitlements.

The audit examined the various investigative bodies responsible for overseeing Defence's workforce, including civilian staff, Australian Defence Force personnel and reservists.It found that investigations were not always conducted in accordance with Defence policy and were sometimes delayed.

The report also highlighted a separate procurement-related case involving a Defence contractor that submitted falsified quotes on multiple occasions between May and October 2020.While the contractor repaid nearly $1.

4 million in 2022, auditors found that Defence's Investigations and Public Interest Disclosures Branch did not fully assess the matter for broader offending despite indications of additional possible fraud.Historical records had also documented concerns about the contractor's payment claims.

Defence accepted all recommendations made by the audit office, including stronger enforcement of fraud-related debt recovery policies and the establishment of clearer arrangements for handling procurement complaints.

The findings come ahead of the planned creation of the Defence Delivery Agency in 2027 and follow internal warnings that increasing procurement-related misconduct and fraud cases may indicate broader systemic weaknesses within Defence.