Agenda item

The Head of Internal Audit and Corporate Anti-Fraud will submit a report providing his Annual Report on the counter fraud related activity undertaken by the Internal Audit Corporate Anti-Fraud Team for the period 1^st April, 2016 to 31^st March, 2017 and providing information and assurance to the Committee regarding key aspects of the Authority’s risk management, control and governance framework.

The Head of Internal Audit and Corporate Anti-Fraud submitted a report providing his Annual Report on the counter fraud related activity undertaken by the Internal Audit Corporate Anti-Fraud Team for the period 1^st April, 2016 to 31^st March, 2017.  It provided information and assurance to the Committee regarding key aspects of the Authority’s risk management, control and governance framework.

In addition to himself, the following members of the Corporate Anti-Fraud Team were in attendance to answer any detailed technical questions raised:

·         Ms J Race – Principal Auditor, Internal Audit, Corporate Anti-Fraud

·         Ms C Evans – Senior Corporate Anti-Fraud Officer

·         Ms R Lancaster – Corporate Anti-Fraud Officer

The report indicated that as a Local Authority responsible for the administration for large amounts of assets and finance, Barnsley MBC was a target for fraudsters.  It was, therefore, important for the Authority to maintain a robust framework of policies and procedures to safeguard the Council’s integrity against potential fraud.

From April 2015, all counter fraud functions had been centralised within the Corporate Anti-Fraud Team and this had enabled the Council to focus its preventative and investigative resources to tackle different types of fraud that may occur.  The report gave details of the wide range of tasks undertaken including:

·         Implementing the Anti-Fraud and Corruption Policy across the Authority

·         Providing a comprehensive counter-fraud service for all directorates

·         Co-ordinating and managing the Council’s participation in the National Fraud Initiative

·         The introduction of Council wide Fraud Awareness Training and the prevention

·         The detection of all types of fraud

The report, in outlining the performance of the Team, gave details of both the proactive and reactive work undertaken including Council Tax Support Investigations, Fraudulent Council Tax liability claims, and Right to Buy and Housing/Tenancy Fraud work.  It also then highlighted the key priorities for the Team for 2017/18 and an Appendix to the report provided case examples of the Corporate Anti-Fraud Activity for 2016/17.

In the ensuing discussion, and in response to detailed questioning, the following matters were highlighted:

·         The Team attempted, where possible, to have an even spread of workload over the three main areas of focus, prevention, detection and investigation

·         The Cabinet in May, 2017 had received reports on the Corporate Anti-Fraud and Corruption Policy, the Corporate Anti-Fraud and Corruption Strategy and the Corporate Anti-Bribery Policy, all of which had been approved and, in addition, the Council’s overall ‘zero tolerance’ approach had been endorsed.  This Committee was charged with monitoring the effectiveness of these policies.  It was pleasing to note that these documents had received favourable reports within the local press.  Arising out of this, reference was made to the work programme and to the fact that part of this included the consolidation of work in this area and the organisation of a publicity campaign.  It was accepted that such a campaign could have implications for the workload of the Team

·         Meetings with the South Yorkshire Police were progressing to refresh protocols

·         In relation to the work on the National Fraud Initiative, it was noted that a significant sum was to be recovered in relation to both Private Residential Care Homes and Personal Budgets.  These cases generally linked to overpayments and did not indicate any systematic weaknesses.  This exercise had been so successful that it was intended that it would be repeated

·         Progress was continuing in relation to the in house e-learning modules which were to be rolled out shortly

·         It was noted that the Authority was no longer responsible for Housing Benefit Fraud

·         It was noted that in relation to Council tax, 141 cases showed no evidence of fraud. Information was provided on the type of issues investigated and particular reference was made to single person discount investigations.   Arising out of this discussion reference was made to the ways in which referrals were received and particular mention was made to online and telephone referrals.  It was noted that an answerphone service was now provided due to the number of calls received about Housing Benefit issues which the Team could no longer investigate.  Queries in relation to such issues were referred to the DWP

·         The service was always looking to improve ways of reporting potential fraud and to improve the quality of the information captured

·         In response to detailed questioning, Ms Race outlined to background to a suspected money laundering case which had been investigated.

·         The Head of Internal Audit and Corporate Anti-Fraud commented that the Council’s investment in the Team was vindicated by the success it had achieved

·         It was suggested that the Team target, at some time in the future, the Council’s business/commercial activities for any potential areas of fraud

·         The Principal Auditor referred to an article in the Barnsley Chronicle which highlighted a tenant who had sub let his house.  The individual concerned had been sentenced to 26 weeks and was required to pay approximately £6,000 in fines.  The Council was the first to bring successful case under the provisions of the Prevention of Social Housing Fraud Act 2013.

RESOLVED

(i)            That the Annual Fraud Report be received as part of the framework of assurance to support the Annual Governance Statement;

(ii)          That the embedding of a culture of zero tolerance and high levels of awareness regarding fraud and corruption be supported; and

(iii)         That the Committee place on record its thanks to the staff of the Corporate Anti-Fraud Team for their hard work and dedication during the year.