Agenda item

The Head of Internal Audit and Corporate Anti-Fraud will submit a progress report providing an update of the work of the Corporate Anti-Fraud Team from 1^st April to 31^st October, 2016.

The Head of Internal Audit and Anti-Fraud submitted a progress report providing an update of the work of the Corporate Anti-Fraud Team for the 1^st April to 31^st October, 2016.

The report provided details of the following activities in which the Team were currently involved:

·         Council Tax Support investigations

·         Council Tax fraudulent liability claims

·         Right to Buy investigations

·         Corporate Investigations

·         National Fraud Initiative involvement

·         Tenancy Fraud

An appendix to the report gave details of sample fraud cases that had been investigated together with the results/outcome.

The report indicated and the Head of Service gave details of the positive impact the Team was having in tackling fraud which was very much welcomed.  It was noted that the Team’s work was now having significant results as initiatives were rolled out end became fully embedded within the Council’s processes and procedures.

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

·         Details of the cumulative financial amounts obtained/recovered by the Service that would otherwise have been lost amounted to around £500,000 and was likely to increase

·         The number of Right to Buy, National Fraud Initiative and Tenancy Fraud cases were continuing to increase, however, the number of Corporate Investigations was relatively small due to the Service giving advice to managers who now undertook appropriate investigations (although the Service retained the right to intervene if it thought that managers hadn’t got the necessary skills to undertaken investigations)

·         It was the intention to present a report to either the January or March meeting on an update of the corporate anti-fraud policy and strategy

·         In response to specific questioning, an explanation was provided of how investigations were undertaken in order to detect Council Tax Fraud, and particularly in relation to Single Person Discount and also for unoccupied properties.  Arising out of this reference was made to a pilot being undertaken in relation to Single Person Discount which would allow data matching against other benefit and payroll systems.  If this was successful it was possible that a mandatory system might be introduced

·         In relation to the National Fraud Initiative, questions were asked with regard to the sale of data sets and whether or not the Council obtained income from such sales.  The Director of Legal and Governance explained that the Council was limited in what information it could legitimately sell as it was constrained by Date Protection legislation.  Data match information was only relevant to appropriate organisations.  The Head of Internal Audit and Corporate Anti-Fraud explained the way in which the Team ensured that it was fully compliant with all the relevant regulations and legislation in relation to the investigation and detection of fraud

·         Information was provided about the robust processes in place in relation to the raising of orders and the payment of invoices.  It was felt that there was limited scope for any kind of fraud.  In addition, computer software was used to identify areas of overpayment/dual payments etc.  Information was also provided on the arrangements and controls in place in relation to the prevention of fraud on contracts

·         There was a discussion of the changing risk appetite within the context of the financial restrictions facing the Authority.  It was noted that inherent risks would never go away, however, the necessary controls and systems were in place to minimise any fraud

·         Information was provided in relation to referrals that were not pursued for investigation and the reasons for this

·         In response to questioning, information was provided on ways in which supplier fraud or theft by employees (particularly in relation to theft of fuel from vehicles) was detected and investigated

RESOLVED:-

(i)        that the progress made in the development of effective arrangements and measures to minimise the risk of fraud and corruption be noted; and

(ii)       that the Committee receive six monthly progress reports on internal and external fraud investigated by the Corporate Anti-Fraud Team.