This report is to provide an overview on all counter fraud activity across the Council’s services throughout the previous calendar year and represent an up-to-date account of the work undertaken, including progress and outcomes aligned with our strategy and core objectives.

The Counter Fraud Manager (CFM) presented the report, the purpose of which was to provide an overview on all counter fraud activity across the council’s services throughout the previous calendar year and represent an up-to-date account of the work undertaken, including progress and outcomes aligned with the council’s strategy and core objectives.

The following key points were highlighted:

1.     During 2023, there had been a significant increase in the number of referrals being made to the counter fraud service which provided assurance to the committee that effective reporting avenues were in place and that Individuals felt confident to use them to report allegations of suspected fraud.

2.     There had been a two-fold increase in the number of fraud alerts that were raised internally to council services and a threefold increase in the number of cases that were investigated to completion during 2023. This had been achieved through collaboration and effective partnership with internal services and external agencies.

In response to committee questions, it was noted

      I.         The CFM in relation to the cyber fraud graph confirmed that different ways of presenting the data such as monthly would be explored with the security team.

     II.         The CFM explained that it would be speculative on why there may be an uplift in cyber related incidents, but the committee could take assurance that none of the incidents targeting the council or Hoople Ltd were successful during 2023, demonstrating the robust controls in place to prevent cyber-attacks.

   III.         The CFM highlighted in 2023 the counter fraud service (CFS) undertook and led an extensive fraud risk assessment, during which the CFM met with directors, managers and operational workers across service areas within the council. This risk assessment ensured that services proactively acknowledged and took ownership of their fraud risks. The corporate performance team had since integrated all fraud risks into the council’s risk registers and the CFS has worked closely with SWAP internal audit to ensure that fraud risks are considered during the assessment of any relevant new audit.

   IV.         The CFM suggested that the visual metrics could be looked at and revamped to include deterrence but assured members that deterrence is included as part of the risk assessment and is included as part of the overall control metric. Examples of deterrence were given such as; publishing successful prosecutions/ outcomes, raising awareness and statements and declarations integrated into procedures and policy application forms.

    V.         The CFM explained that referral rates were similar to those seen in previous years. It was highlighted that the public referral hotline and digital reporting form had been introduced in November 2022 and it would seem the visibility and reporting platform had correlated with the increase of referrals.

   VI.         The reporting avenues for internal and external users were explored.

 VII.         The CFM informed the committee that resources would need to be reviewed internally if the trend of increased referrals were to continue.

VIII.         In relation to the successful prosecution in December 2023, the CFM highlighted how collaboration and joint working is  ...  view the full minutes text for item 75