Issue - meetings

Report of the Director – Finance and Corporate Services

Mr Dulay presented the Annual Fraud Report which summarises the incidence of fraud and fraud prevention activities at the Council during the year 2022/23.

The Group noted that the auditor had not undertaken a full fraud risk assessment or audited any information provided to it by the Council’s officers. However, when undertaking other audit work if a fraud is suspected or identified, then it would be investigated and reported to Governance Scrutiny Group. A detailed report was appended with no frauds identified.

Mr Dulay highlighted that training on fraud awareness had been delivered by BDO to staff across the Council, anti-fraud and corruption policies and in particular the Council’s whistleblowing policy arrangements were robust, and staff are made aware of procedures on the staff intranet page and managers encourage an open culture.

Group were informed of the National Fraud Initiative (NFI), a data matching exercise that matches electronic data within and between public and private sector bodies to prevent and detect fraud. Mr Dulay advised the Group that the Council started a review in respect of single person discounts via the NFI and 800 matches were reviewed, from these matches there had been 69 live cases investigated and 69 cases where the discount had been removed. The Group were advised that due to other work pressures, resources were diverted to Council Tax Energy Rebate payments.

It was noted that all discounts awarded (except single person discounts) are reviewed on an annual basis.

In concluding Mr Dulay advised that the Council’s fraud arrangements are good.

Members of the Group raised specific concerns in respect of the 800 matches found via the NFI data matching exercise and only 69 cases being identified and investigated. The Group also asked what the Council does when a fraud has been identified. Mr Dulay reassured the Group that these were flagged matches and are not necessarily fraudulent. The Service Manager – Finance added that in most cases they are found to be a mistake, when fraudulent activity is identified the customer is rebilled for the outstanding amount.

The Chair considered the report to be positive and complimented officers on their proactive approach to fraud.

It was RESOLVED that Governance Scrutiny Group notes the Annual Fraud Report for 2022/23, and that the Council should carry out a Fraud Risk Assessment in the next 12 months.