Agenda item

This report provides the Committee with an update with the counter fraud activity for this year.

Michael Bradley (Head of Audit and Investigations) introduced this report that set out the activities of the counter fraud function in Q4.  The Committee noted the following overview provided:

·             Internal fraud typically had the fewest but more complex referrals from a variety of sources in any period. In reference to the table in the report, he gave a summary of the case types as set out within the report but added that due to confidentiality, it was inappropriate to provide additional details within the report.  Members heard that the cases involved misuse of IT, conflict of interest, recruitment irregularities, breach of financial / other regulations and bribery or corruption.

·             The recovery of social housing properties by the Counter Fraud team remained a high priority fraud risk for the Council with the average value of each recovered tenancy being around £93,000.  Five housing cases, with a notional value of £465,000, were recorded as a result of fraud / irregularity in Q4. The total number of fraudulent housing cases concluded in 2019/20 was 19, (27 in 2018/19).

·             The following statistical information was also noted;

Ø   An average of 40 recoveries had been made over the last three years.

Ø   Referrals had declined over the last two years.

Ø   Of the 34 referrals logged during Q4, nine were from Housing Management teams.

Ø   Total referrals logged this year were 176, compared to last year’s total of 151, and a further 24 referrals were received in Q4 that needed to be processed.

Ø   There were currently 92 live housing investigations.

Ø   The successful on-street Blue Badge operation with the Parking Enforcement in the Willesden area.

·                 Arising from the Council’s response to the Covid-19 pandemic, some interim amendments to processes and controls in services had been put in place that were being delivered in a controlled manner with appropriate advice to managers regarding the risk of error and fraud. Officers were analysing the reasons for an increase in fraud referrals and dealing with individual caseloads.

The Chair having thanked the Head of Audit and Investigation invited comments and questions from Members with the following issues raised:

(a)    Members observed that because of the Covid-19 pandemic there could be frequent use of ID scans with all of the attendant problems, some of which were detailed in the report.  Referencing the report, the Head of Audit and Investigations highlighted the importance of adequate identity scanners, particularly for recruitment, and he anticipated the introduction of new scanners as soon as circumstances allowed.  He was looking into the risk of email scans verification. Work currently in progress, would be reported to Committee when it was completed.

(b)    In response to questions about whether the team had an arrangement in place to authenticate documents with the Home Office and the DVLA, the Head of Audit and Investigations confirmed that the ID scanner would be able to check and authenticate documents with statutory bodies.

In the absence of further issues, the Chair once again expressed thanks to the Head of Audit and Investigations for the progress report and the responses. 

The Committee RESOLVED to note the counter fraud work for the fourth quarter 2019/20.