Mark Niblock, Chief Internal Auditor, introduced his report that provided the Audit and Risk Management Committee with an update on the activities of the Counter-Fraud Team within Internal Audit covering the Municipal Year 2018/19 to date. The report also informed that although the Counter-Fraud Team worked closely and collaboratively with the Fraud and Compliance Team within Revenues and Benefits, the report did not include the extensive specialist activities of their work which was the subject of separate report to Members.

3.1  The report highlighted that the main areas of fraud within the public sector, as highlighted by the Counter Fraud Centre, were:

• Business Rates;
• Procurement;
• Social Care and Welfare Assistance;
• Council Tax;
• Disabled Parking (Blue Badge);
• Debt;
• Insurance Claims;
• Economic and voluntary sector (grant fraud);
• Recruitment Fraud; and
• Insider Fraud – payroll / expenses/ abuse of works time or position.

3.2  The report also identified that the primary role of the Counter Fraud Team was to:

• Prepare relevant best practice policies and procedures;
• Facilitate changes to the culture of the organisation by raising awareness amongst the workforce to fraud and corruption through targeted training;
• Proactively manage the risk of fraud to the Council through targeted audits in high risk areas; and
• Provide both a proactive and a reactive response to tackling fraud across the authority.

The report further identified the activities taken by the Counter-Fraud Team that included:

• Engagement with Fraud Groups – i.e. the Mersey Region Fraud Group (MRFG) and the North West Chief Audit Executives Counter-Fraud Sub Group.
• National Fraud Initiative - the Council is required by law to participate.
• Self-Assessment against the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption – adhering to the Code of Practice on Managing the Risk of Fraud and Corruption, which although not currently mandatory, represents best practice and compliance and enables the Council to demonstrate effective financial stewardship of public monies.
• Training, Awareness and Reporting; and
• Audits and Investigations.

Resolved – That the report be noted, and the work of the Counter Fraud Team be supported.