Agenda item

The Head of Internal Audit, Anti-Fraud and Assurance will submit a report providing an account of the work of the Corproate Anti-Fraud Team for the period 1^st April to 31^st August, 2020.

The Head of Internal Audit, Anti-Fraud and Assurance submitted a report providing an account of the work of the Corporate Anti-Fraud Team for the period 1^st April to 31^st August, 2020.

The report gave details of the action taken in respect of fraud management and investigations  during the first five months of 2020/21 in relation to:

• Covid 19 Counter Fraud Work had been a major focus and with particular emphasis on
  • The small Business Grant Fund, Retail, Hospitality and Leisure Grant Fund and the Local authority Discretionary Grants Fund
  • Fraud Alerts and Scams
  • Covid 19 Fraud Risks
  • Counter Fraud Advice
• Data matching work that was continuing in relation to the National Fraud Initiative
  • It was noted that the Cabinet office had confirmed that Business Support Grants and Business Rates datasets were to be mandated in the 2020/21 NFI exercise
  • Comparisons were provided of the 2018/19 NFI results to pervious exercises in relation to Housing Benefit, Payroll, Pension Gratuity, Private Care Home Residents, Duplicate Creditors, Council Tax Reduction, Council Tax Single Person Discount and Personal Budgets
  • Arising out of the above, particular reference was made to work in relation to the Single Person Discount and the work undertaken in liaison with the Business Rates Team
• Investigations undertaken - details of which were summarised in relation to Council Tax Fraud, Tenancy Fraud (including Right to Buy investigations), Blue Badge Irregularities, Insurance Fraud and Corporate Investigations involving employee or other third party fraud
• Preventative work including procurement fraud risk
• Work with External Clients

The difficulties of identifying a definite amount of money saved as a result of the impact of the Team was outlined, however, it was noted that the Corporate Anti-Fraud Team more than payed for itself every year in direct activity and contributed additional fraud/loss avoidance through fraud awareness training, policy review and advice.

In the ensuing discussion, particular reference was made to the following:

·         There was a discussion of the potential risk associated with digital remote working which the Team was very alert to and it was noted that regular meetings were held with colleagues within the IT Service to look at and to be assured about the Council’s response to those kinds of risks

·         It was noted that Barnsley was one of the first Local Authorities in the region to start making payments to businesses in order to support the local economy in accordance with the Covid 19 guidance and this had been prior to the receipt of any Government funding.  Approximately £18m in payments had been made prior to the 31^st March, 2020.  The Section 151 Officer had been aware of the apparent and inherent risks associated with this and appropriate action had been taken to mitigate any risks arising.  The number of fraudulent cases had been minimal, and work was progressing with the Corporate Anti-Fraud team to recover any payments wherever possible.  The Government had confirmed, however, that provided that the Authority had robust and necessary procedures and processes in place, which it had, then any costs would be borne by the Government and not the Council

·         Questions were asked in relation to any publicity the authority might be issuing reminding individuals of the opportunity to return invalid claimed payments.  The Head of Internal Audit, Anti-Fraud and Assurance stated that successful prosecutions were always publicised in the local press.  In addition, in a few months’ time his service would be publicising a range of scams and frauds as part of the Fraud Awareness Week which ensured that these important messages were highlighted both within the Council and the local community.  In relation to all grants and payments schemes, the Council had very carefully crafted fair processing notices which made it clear that the information provided by applicants could be used for the purposes of combatting crime.  The Council was also developing capacity to utilise information it already had in order to identify fraudulent or duplicate payments utilising a new system that the Finance Service had recently implemented.  In relation to the proactive approach encouraging those who had received incorrect payments to admit the same was not something that was readily utilised, and this matter would be given further consideration to see if such an approach could be adopted.  It was suggested that it might be useful to give further consideration to the work of HMRC in this area

·         In response to specific questioning, the Director of Finance gave a brief report on the way in which funding received to support the Covid pandemic, as well as the New Burdens Funding, could be utilised

·         Thanks were extended to the Business Support Team and to the Corporate Anti-Fraud Team for their hard work during this very difficult period

RESOLVED:

(i)            That the progress made in the development of effective arrangements and measures to minimise the risk of fraud and corruption for the period 1^st April to 31^st August 2020 be noted; and

(ii)                That further regular reports be submitted on internal and external fraud investigated by the Corporate Anti-Fraud Team.