Agenda item

To submit the report of the Senior Manager Revenues and Risk.

Submitted - the report of the Senior Revenue and Risk Manager that gave an update on the Council's anti-fraud and anti-corruption arrangements together with the work programme for the next three years. 

It was noted that although 'Risk of Fraud, Bribery and/or Corruption' was considered a low risk the Council continued to be aware of the risk and the Council had suffered as a result of major fraud in the past.  Further details were given on the contents of the report.

It was explained that the Committee would receive regular reports (approximately every six months) on the Council's anti-fraud, anti-corruption and anti-bribery efforts. 

A member noted that the fraud linked to Express Motors had been shocking and it would be useful to have a sub-group of the Committee to look in detail and to learn lessons from this case. Reference was made to the Strategy and it was asked how regular did workshops take place with relevant officers to discuss issues that arise, apparent risks and to share good practice. It was asked which agencies the Council cooperated with and how regularly the Strategy was reviewed.

In response to the above observations, the Senior Revenue and Risk Manager noted:

·         That the Committee had already received a report on the Express Fraud at its meeting on 29 November 2018 and had discussed the matter in detail. At the time, the Environment Department was asked for a report regarding mitigating the risks to the Council of committing to a new agreement with the Welsh Government's Concessionary Fares Scheme. That it was a decision for the members if they wished to discuss the two cases of fraud in public transport at the Controls Improvement Working Group, however, there was a danger that by focusing on this fraud that they would lose sight of other risks bearing in mind that the Council has a wide range of services.

·         The Council did not have a specific anti-fraud resource, the work will be completed within the resources with internal audit undertaking the research. It was intended to conduct regular workshops with officers from different services such as audit, benefits, tax and others, looking at risks that arose from the experiences of other authorities.

·         Although the Response Plan had not been revised since 2013, it continued to be fit for purpose with only changes in job titles.

·         The Wales Audit Office led on the National Fraud Initiative that is held every two years by comparing agency data and if anything was highlighted then the relevant agency would be contacted. It was noted that once there was sufficient evidence to be presented to the police following an investigation by internal audit then the information would be referred to the Monitoring Officer.

A member noted that he was of the opinion that consideration needed to be given to the two cases of fraud in the public transport area in the Controls Improvement Working Group.

A member asked if there was a system in place to respond when incidents of fraud occurred.  In response, the Senior Revenue and Risk Manager noted that this was the purpose of the Response Plan. It was noted that managers and officers were in the best position to discover fraud and awareness needed to be raised in order that they were alert to the risk of fraud and to be willing to report on possible fraud. There was also an external risk from companies sending false invoices.  

In response to a further observation in the context of collaboration with other agencies, the Senior Revenue and Risk Manager noted that as part of the National Fraud Initiative there was a contact point in each agency and these could be used with fraud outside the initiative as well as a starting point.

A member gave thanks for the report. Reference was made to the fact that Council Tax fraud was not highlighted in the document. The member asked if housing benefit fraud was relevant in terms of the response plan as the Government had the responsibility. In response, the Senior Revenue and Risk Manager noted that there was no reference to Council Tax fraud in the document and consideration would be given to add this. He added that it was intended to place more focus on the Council Tax Reductions Scheme over the next few years. He explained that it was the UK Government's Work and Pensions Department who had been responsible for investigating housing benefits fraud for approximately four years. He elaborated that the Council had a contact point in the Work and Pensions Department and cases were referred to their attention, however, it was not as efficient as when the work was undertaken internally, with a requirement to complete a number of forms.

A member noted that it was impossible to get rid of fraud completely, however, the Strategy and the response plan confirmed that there were processes in place to prevent fraud and they should be approved.

RESOLVED to accept the report as an explanation of the Council's arrangements for investigating and preventing fraud and corruption within the system and to approve the Anti-Fraud, Anti-Corruption and Anti-Bribery Strategy and the Fraud and Corruption Response Plan.