Agenda item

Members received the report of the Head of Internal Audit, Anti-Fraud and Assurance to introduce the next scheduled strategic risks to consider. These risks were presented by the Director of Finance and were Financial Sustainability (considered as part of the MTFS Report to the Committee) and Threat of Fraud.

Members were informed that the online training provision for officers on the topic of general anti-fraud awareness had recently been refreshed and that specific training on procurement fraud risk was being developed. Engagement with the Communications and Marketing Service was underway to ensure there was a general awareness of the risk of fraud, with various events and campaigns planned throughout 2023.

Cyber risk was identified as key and work was underway to prepare the Council for “when” this were to happen, rather than “if”. Members were advised that some cyber attacks had left Councils inoperable for months and therefore this work was a major focus in terms of resilience. An exercise had taken place with senior officers as a means of conveying that cyber risk was service-owned and not the sole responsibility of IT colleagues.

During Member discussion, it was questioned as to what work internal audit undertook to address financial sustainability. Members were advised that this was captured in transformation work and that this work aimed to elicit as much efficiency and effectiveness over its course. If a service was particularly large, complex, or transformative then time would be provided to support this transformation. Regular discussions were taking place on strategic oversight and planning, to ensure an effective response and diversion of resources where required.

Members additionally discussed the threat of fraud and the counter to this being related to a zero tolerance Council culture. It was questioned as to whether this was already strong among the workforce or whether it was something that needed addressing to counteract existing behaviour. Members were advised that a Governance and Ethics Board of officers had been created to identify and discuss issues, with one of the unfortunate issues being the risk of a small minority who were opportunistic or driven by external factors to commit fraud.

RESOLVED that the update be noted.