Issue - meetings

This report presents the Council’s Annual Counter Fraud Report for the financial year 2023-24.

Darren Armstrong, Deputy Director Organisational Assurance & Resilience, introduced a report presenting the Council’s Annual Counter Fraud Report for 2023-24, which summarised the counter fraud activity undertaken across multiple fraud types (including internal fraud, housing tenancy fraud, external fraud and proactive work) and had been designed to support the Committee in obtaining assurance on the robustness of the Council’s counter fraud arrangements.

In considering the report the following key issues were noted:

·                The high priority identified in terms of counter fraud activity given the inherent and significant level of risk posed by fraud to the Council, with the Council having established a well developed approach towards tackling fraud and corruption based on a combination of reactive and proactive prevention and detection activities in line with best practice.

·                The Annual Counter Fraud Plan had been designed to ensure that resources were being effectively targeted and deployed to prevent and detect fraud, underpinned by the Council’s Anti-Fraud and Bribery & Whistleblowing policies.  A summary of all reactive and proactive counter fraud activity undertaken in 2023-24 had been detailed within the Annual Counter Fraud Report attached as Appendix 1 to the report.

·                The amended format introduction as part of the Annual Counter Fraud Report, which included the following specific sections:

o      Internal Fraud Activity & Outcomes – including a breakdown of the main types and volume of referrals (including whistleblowing).  Members were advised that of the 20 cases concluded during the reporting period 10 had resulted in a degree of fraud and/or irregularity being identified involving either theft, misappropriation of funds; conflicts of interest; recruitment; external offences/breaches and/or conduct of staff.

o      Tenancy & Housing Fraud – with the total number of fraudulent housing cases concluded over the reporting period being 16 and total notional value (based on an estimate of £42k per property recovered or Housing application stopped) being £672k.

o      External Fraud – including (but not limited to) cases involving Blue Badges, Direct Payments, Council Tax and Business Rates, Insurance, Finance, Concessionary Travel and grant applications with 300 cases opened during the reporting period compared to 224 for the previous year.  Members were advised this included 213 successful outcomes where fraud was detected relating to Blue Badge, representing a significant increase compared to the previous year with 38 prosecutions and 126 cautions/warnings issued, again representing an increase over the previous year.

o      Proactive and other activity – including a broad range of work including National Fraud Initiative (NFI) data matching reviews, fraud workshops, targeted operations and other planned fraud risk reviews which had resulted in significant cost savings being generated for example, through the NFI Council Tax Single Person Discount (SPD) review and participation in the NFI London FraudHub.

·                The outline of the Counter Fraud Plan, which had also been included as Appendix 2 of the report, which summarised how resources would be deployed and targeted to achieve the aims and objectives within the Council’s anti-fraud policies developed based on previous outcomes, stakeholder engagement, known and emerging risks.  Members were advised this also included  ...  view the full minutes text for item 7