Agenda item

The Head of Internal Audit and Corporate Anti-Fraud will submit a report on the Corporate Anti-Fraud Team Plan for 2017/18 which supports the Corporate Anti-Fraud Strategy.

The Head of Internal Audit and Corporate Anti-Fraud introduced the report, noting the consideration given to the recent publication ‘Fighting Fraud and Corruption Locally’ in compiling the Strategy and Action Plan.

The approach had three themes; Acknowledge/ Deter; Prevent/Detect; and Investigate/Pursue, with resources divided amongst these three aspects.  Members were reminded of the recommendation that flexibility be maintained in order that the Head of Internal Audit and Corporate Anti-Fraud be able to direct resources as necessary to respond to any future issues requiring reactive investigation work.

It was noted that the vast majority of issues were reported to Internal Audit, with the public and employees being an important source of information, therefore the service was largely response led. 

Members acknowledged that it was the responsibility of management to have appropriate anti-fraud and corruption policies in place, and the recent focus on refreshing the whistleblowing policy and raising awareness was noted.

With regards to the strategy, Members noted the continued commitment shown through the investment in the Corporate Anti-Fraud Team, the figures for which showed that based on the results of activities during the year the function had more than paid for itself.  It was recognised that the team was very flexible, however Members’ attention was drawn to the areas where the team was likely to focus its efforts.    Also noted was the intention to submit regular reports to the committee on the successes of the team, including case studies where appropriate.

Members questioned why the publicity campaign would be undertaken in the medium term, rather than sooner. It was noted that this was in order to ensure appropriate policies and procedures had been reviewed, staff awareness raised, and the authority best placed to react to any issues raised through the campaign.  Assurances were given that the campaign would run in 2017.

A question was asked relating to procurement.  It was noted that the focus had generally been on high level procurement activity, but given that an increasing amount of procurement was undertaken at the Area Council level, it was asked what focus was given to this level.  The Head of Internal Audit and Corporate Anti-Fraud made the meeting aware that every piece of audit work would include work to consider fraud if there were inherent risks, and this would include work at Area Council level.  A previous audit of the work of Area Councils was judged overall as adequate.  Members acknowledged that increased commissioning and procurement could present higher levels of risk, and it was noted that this did feature in the audit plan.  It was suggested that a future meeting of the committee could receive a presentation from the Head of Strategic Commissioning and Procurement on the procurement process, including an overview of relevant policies and procedures, to ensure members were fully briefed on this.

Comments were made regarding the focus of anti-fraud work, which tended to focus on a certain segment of society, and questions were raised relating to whether the team was appropriately resourced.   It was acknowledged that the work of the team was targeted at areas where results were likely, and the balance between resources allocated and likely financial results was discussed

Following a question relating to the cross referencing of identification, Members were made aware of the work with the National Fraud Initiative to cross reference data.

The meeting discussed impending changes to business rates, and the possibility for this to impact on levels of fraud.

Members discussed the compiling of an inventory of investigative/ surveillance equipment for corporate use, noting that this was to maximise the impact of the equipment through sharing of resources.

The Chair questioned the changes in responsibility for enforcing the blue badge scheme, and it was recognised that this was a function of the changes implemented through Future Council, however it was agreed that this remained an important area to maintain.

RESOLVED:-

(i)     That the Corporate Anti-Fraud team plan 2017/18 and supporting strategy be agreed, subject to the need for the Head of Internal Audit to apply the plan flexibly to respond to demand;

(ii)    That the Committee receive regular monitoring reports from the Head of Internal Audit to demonstrate progress against the plan including information where the plan has been materially varied; and

(iii)  That a future meeting of the Committee receives a presentation from the Head of Commissioning and Procurement regarding the procurement process, and details of relevant policies and procedures.