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:

·       There had been a further increase in the number of corporate fraud referrals, an uptrend over the past three years. Whilst increases are positive in many ways as it shows confidence and accessibility in reporting systems, it can also pose a challenge due to the increased volume of work on resources allocated to respond.

·       Further challenges in 2024 such as understanding of how the fraud risks continue to develop across the organisation, increasing evolution and adaptation of artificial intelligence and risks associated with this emerging technology being utilised by bad actors was highlighted.

·       96.5% success rate of all staff completing fraud awareness training.

·       2 new strategic pillars in deter and protect had been added which aimed to capture and report to the committee some of the key existing measures that the Council had in both deterring fraud and protecting local residents from the risk of fraud.

In response to committee questions, it was noted.

1.   The CFM explained that a large percentage of referrals comes from external means, this could be via a postal form, the public referral hotline or digital reporting form. Most referrals utilised the anonymity option.

2.   The CFM confirmed a joint working agreement with the Department for Work and Pensions was in place.  An increase in the number of criminal investigations being jointly worked between both organisations was noticed and benefited in the number of civil recoveries being achieved. The importance of joint working with other enforcement agencies was highlighted to have significant impact and reduce the risk of fraud.

3.   The CFM confirmed that there is mandatory awareness training which reaches all staff across the Council and more targeted training for grant schemes.

4.   It was explained that benchmarking fraud prevention against other local authorities would be difficult.

5.   Council tax revenues and benefits remains a high area of referrals which marries nationally and what was being seen through other local authorities that engage in the Midlands fraud group, (a hub of corporate fraud investigators that share intelligence across the UK). 

6.   The committee were informed that the CFM was the sole full time equivalent officer that deals with corporate fraud in the council and that there could be some benefit in additional resources.

7.   The DOF highlighted that the counter fraud service is supported by colleagues across the organisation such as finance, benefits and revenues but would continue to review the resources and the cost benefit of what is able to be recalled in terms of avoided fraud.

8.   The Head of Internal Audit also advised the committee that she was working with the council tax team about second homes and sharing within the swap partnership about what their partners were doing.

The committee noted the report and deemed the annual fraud arrangements as satisfactory.