Agenda item

This report sets out a summary of the counter fraud activity undertaken in 2022-23.

Darren Armstrong, Head of Audit & Investigation, introduced the report that summarised the counter fraud activity that had been undertaken in 2022-23. In considering the report the following key issues were noted:

·         The summary of numbers and types of internal and external fraud referrals for 2022-23 as detailed within Table A and Table C of the report.

·         In terms of Internal Fraud (Table A) the volume and type of referrals was consistent with recent years, and the trend suggested that the service profile and engagement across the Council continued to be effective. Due to the confidential nature of these type of referrals, it was not appropriate to provide further details of the allegations in the report

·         Table B provided a specific breakdown of Tenancy and Social Housing Fraud. A total of 20 fraudulent housing cases were identified in 22/23, with the average value of each recovered tenancy at approximately £93,000 per property, therefore  the notional value of the 20 cases totalled £1,860,000.

·         External Fraud referrals laid out in Table C of the report confirmed 224 new referrals for 22/23 with Blue Badge fraud allegations making up 68% of new referrals.

·         The broad range of proactive counter fraud activity for 2022/23 was summarised in Table D of the report. Work included NFI data matching reviews, fraud workshops, targeted operations and other planned fraud risk reviews.

·         As part of the Council’s membership to FraudHub the Council received access to another application called AppCheck, that was currently being tested by the Counter Fraud team in liaison with appropriate teams within the Council to pilot its use and monitor its effectiveness.

·         Table E of the report provided a summary of the notional and actual savings made to the Council as a result of the Fraud work undertaken,

·         The notional and actual savings identified as a result of counter fraud activity were summarised in Table E of the report, which (in addition to the preventative work being undertaken) it was also felt demonstrated the positive impact the Counter Fraud Team was having across the council in relation to the protection of the public purse.

·         The robust nature of both reactive and proactive counter fraud activity.

·         Increased referrals were expected as a consequence of the current economic environment and Cost of Living crisis.

The Chair then invited the Committee to raise questions on the report, with the responses summarised as follows:

·         In response to a Committee question in relation to the use of AppCheck as a tool to support identifying fraud, the Committee were advised that the app enabled departments to check and verify applications across a number of databases, it was noted that this would be particularly useful to the Housing Team.

·         In response to a Committee query in relation to sourcing additional tools to identify and inter link fraud, It was confirmed that the functions available as part of FraudHub were in the process of being rolled out across the Council, the Committee were advised of the option of an advanced version that would offer additional freedoms to more licensed data matching both internally and other boroughs.

·         Noting the increased referrals regarding Blue Badge Fraud, the Committee queried when updates to the Blue Badge system would be implemented to make Blue Badges less vulnerable to fraud. In response the Committee were advised that the Fraud Team were in regular contact with the Parking Team to identify hot spots and were assured that when progress was made nationally with combatting Blue Badge Fraud via the introduction of a revised Blue Badge Scheme that the Council would be keen to adopt any advancements to limit this type of fraud. The Committee were advised that their comments would be shared with the Parking team and that officers would continue to raise the issue via the London Counter Fraud Hub and working groups.

As the Committee had no further queries, the Chair thanked Darren Armstrong and his team for their hard work and gains made in Brent’s Counter Fraud Activity and it was RESOLVED to note the report.