Agenda item

(Chief Internal Auditor) To consider the attached report (AGC-021-2016/17).

The Senior Corporate Fraud Investigator presented a report on the Corporate Fraud Team Strategy for 2017/18.

The Committee was informed that the Corporate Fraud Team had become operational on 1 April 2015 and was created in order to bring a uniform approach to anti-fraud activities and to ensure that the Council had adequate resources dedicated to anti-fraud activity. The Corporate Fraud Team Strategy for 2017/18 summarised the key principles for the Team for 2017/18 along with some longer term aims.

The Senior Corporate Fraud Investigator stated that the Corporate Fraud Team Strategy set out the main focus of work that would be undertaken by the Team during 2017/18. The Plan allowed for a mix of both proactive work, such as the vetting of all Right-to-Buy applications, the targeting of Non Domestic Rates fraud with particular scrutiny of so-called ‘Phoenix’ companies, as well as at least one tenancy audit focusing on social tenancy related fraud, and reactive work including the assessment of all referrals and the provision of training packages to two separate departments within the Council. Members of the public were continuing to be encouraged to report fraud and “Know a Cheat in your Street” leaflets had again been included in every Council Tax and Business Rates bill. A review of the data matches from the recent National Fraud Initiative was already underway.

The Senior Corporate Fraud Investigator reported that the team had recently entered into a joint working initiative with their counterparts at Chelmsford City Council, which would focus on the sharing of investigative resources, exploring the potential for joint proactive initiatives, and providing a support service for Investigators. The Team had also undertaken a Standards investigation during 2016 for which it was remunerated, and would continue to be available to undertake such work in the future. The Team was continuing to provide training and advice to external organisations, and areas showing the potential for joint working or shared service arrangements were continuing to be explored, thus creating possible revenue raising opportunities.

The Senior Corporate Fraud Investigator added that the team now had the ability to undertake financial investigations under the provisions of The Proceeds of Crime Act 2002 and had used this ability on three active criminal prosecutions. Services had also been provided to a neighbouring Council, and would continue to be marketed to other local authorities and / or organisations on a “paid for” basis.

In response to questions from the Committee, the Senior Corporate Fraud Investigator outlined that sub-letting, key selling, Right-to-Buy and abandonment were the main forms of fraud associated with social housing. The Team did not get directly involved in potential fraud for Council Tax discounts, such as the Single Persons Discount; however, the Team did investigate potential fraud for Local Council Tax support as this was not a benefit.

The Committee was informed that the Corporate Fraud Team did not operate to a specific target system. In respect of value for money, an attempt was made to put a financial value on the Team’s work, although this was more difficult for Social Housing fraud; £18,000 was used as the figure for when a Council House was recovered as this was the cost of housing a family in temporary accommodation for one year. The Senior Corporate Fraud Investigator reassured the Committee that information was shared with other agencies when the law allowed for this.

The Chairman welcomed the fact that a more serious attitude was being taken to Corporate Fraud by the Council.

Resolved:

(1)        That the Corporate Fraud Team Strategy for 2017/18 be approved.