Agenda item

The Director of Finance submits a report to the Governance and Audit Committee with presents the Counter Fraud Mid-Year Update.

The Committee is recommended to note the report.

The Director of Finance submitted a report to the Governance and Audit Committee with presents the Counter Fraud Mid-Year Update.

The Corporate Investigation Manager, Stuart Limb, presented the report and provided insight into the work areas undertaken, highlighting:

·         the anti-fraud network mentioned in section 4.6. This network has proven beneficial through email alerts and shared intelligence on fraud risks across the country. Any arising risks are promptly addressed.

·         Looking ahead, section 4.8 outlines plans for a comprehensive review scheduled for January next year. Section 4.9 details the savings chart related to fraud prevention efforts.

In response to the presentation, members raised the following points:

·         A query was raised regarding the prioritisation of listed fraud risks. It was explained that these are known areas of concern, with certain aspects such as discount schemes unlikely to change soon particularly the 'Right to Buy' scheme, where once a property is sold, it is no longer part of the council's housing stock. It was suggested that summarising broader fraud issues across various council departments could be beneficial.

·         Further inquiries were made about the operations of the anti-fraud network, comparing its functions to those of financial institutions. Clarification was provided that under existing legislation, the council is permitted to request specific information, subject to proper authorisation. This includes applying legal frameworks and using risk profiling to detect and prevent fraudulent activity.

·         Concerns were raised about requests made concerning requests on council staff members, particularly regarding access to multiple systems by several users. It was explained that if a staff member leaves the council, managers must formally request access through the Information Technology team, with authorisation granted by the Director of Finance. This access may be related to ongoing investigations or non-fraud activities, including accessing email accounts. However, data remains the property of the council, and formal procedures are followed for access.

·         An update was provided on previous requests regarding council tax abstention, specifically related to individuals residing in student halls. Single Person Discount (SPD) investigations were noted, with 11 cases forming part of wider investigations. It was agreed that compliance work on Single Person Discount (SPD) fraud and misuse of student halls accommodation would be pursued as an action point.

·         The issue of the Empty Homes Bonus was discussed, focusing on data collection from SPD reviews and its role in identifying discount misuse. It was suggested that visiting properties and passing information to the council tax team could return more accurate data.

·         The Corporate Investigations Manager responded to a query regarding school places, it was confirmed that annual collaboration with the school admissions team has helped identify and prevent misuse of school placements. This work aims to prevent financial fraud and is reflected in the calculated savings figure. Discussions are ongoing with the Director of Finance regarding how savings figures are reported, particularly concerning whether they represent actual savings or notional values based on identified cases.

RESOLVED

The Committee received and commented on the report.

Made any recommendations to the Executive and/or the Director of Finance.