Agenda item

To consider the Chartered Institute of Public Finance and Accountancy (CIPFA) Fraud and Corruption Tracker report for 2016 and the plans to implement the recommendations.

The Committee considered the Chartered Institute of Public Finance and Accountancy (CIPFA) Fraud and Corruption Tracker report for 2016, together with the Council’s plans and response to the recommendations.

The report was presented by Mrs Greenhalgh, Chief Internal Auditor. The Committee was informed that the report gave a national picture of fraud, bribery and corruption in the UK’s public sector and the actions being taken to prevent it. The report summarised the results of a survey carried out among authorities across the country (of which Blackpool was a contributor) and was supported by a number of other agencies. It was the second survey of this type and gave the opportunity to look for achievements, trends and emerging threats in the sector.

Mrs Greenhalgh talked the Committee through the CIPFA recommendations and the action being taken by the Council to address them. She then responded to questions in relation to the report and action plan.

The report made reference to a case study where Oldham Council had worked with the Department of Work and Pensions (DWP) to create the Single Fraud Investigation Service (SFIS) as part of a pilot national programme. Mrs Greenhalgh confirmed that a Single Fraud Investigation Service was established in Blackpool in April 2015.

On the subject of shared data, Mrs Greenhalgh acknowledged that there continued to be problems as the Department for Work and Pensions were unable to access the Council’s data. Asked about prevention measures in relation to business rates fraud, Mrs Greenhalgh confirmed that work was already being carried on by the Business Rates team and further links with the Corporate Fraud team were being considered.

The Committee discussed purchasing and procurement arrangements and the different arrangements that existed between various departments. Mrs Greenhalgh stressed that the Council had a strong procurement framework in place and that all departments should follow contract procedure rules. The procedures were also covered by regular audit procedures.

Members went on to question Mrs Greenhalgh in relation to the action plan recommendation that stated ‘it is important to prevent fraud that has no direct financial interest, such as data manipulation and recruitment, as it is high value fraud’. The response to that was that currently, the Corporate Fraud team responded to referrals, but had not undertaken any proactive work. However, it would be built into the revised proactive anti-fraud work programme going forward to assess the risk to the Council. Mrs Greenhalgh provided current examples of proactive work that included the Council Tax (single person discount and reduction scheme), the Blue Badge scheme and the checking on whether expenditure made via purchase cards was appropriate.

On the subject of anti-fraud measures within the Council’s own insurance claims, Mrs Greenhalgh confirmed that work would be led by the Corporate Fraud Team, in partnership with other departments, including Highways and Legal Services.

Asked what she considered to be the three highest risk areas faced in relation to fraud issues, Mrs Greenhalgh outlined the following:

1.         Having the capacity to identify fraud risk and investigate allegations.

2.         Insurance fraud.

3.         Council Tax fraud.

The Committee agreed to note the report.

Background papers: None.