An analysis of the ACT Public Service's integrity risks also suggests corrupt bureaucrats pose a greater danger to Canberra taxpayers than fraudulent members of the public.

The Commission for Public Administration's annual Over the Horizon report says the bureaucracy investigated 20 incidents of alleged fraud and graft in 2009-10, up from 12 in 2008. The investigations cost the Government $180,500. The report found the greatest risk to the public service's integrity was staff fraud, such as false pay claims, theft and misuse of office equipment and fuel cards.

It said almost every government agency was exposed to the threat of staff fraud, compared with much lower risks of inappropriate records access, IT misuse and fraud committed by the public.

The Department of Territory and Municipal Services recorded seven incidents of alleged wrongdoing in 2009-10 more than any other agency which included fraud and theft.