A report by the Chief Internal Auditor updated the Audit and Risk Management Committee on the activities of the Counter- Fraud Team within Internal Audit and provided details of the outcome of a recent review of the Council’s overall Counter Fraud and Corruption arrangements.

Detailed within the report were the main areas of fraud within the public sector and Members were advised that Local Authorities face a significant fraud challenge and fraud costs local government an estimated £2.1bn a year. The report informed the Committee that the current COVID-19 pandemic has increased risks to the local authority. In particular, Members heard how remote working reduces the level of management oversight; more money had been spent to maintain services and support those in need; unscrupulous fraudsters have targeted local authorities and service users.

Members were advised that the team oversees and co-ordinates the Council’s involvement in the National Fraud Initiative (NFI) which the Council is required by law to participate in. The report advised that this is a national exercise using data matching audit techniques and that council- wide data sets are uploaded to the Cabinet Office website, which are then matched with data within and between participating bodies to identify potential frauds, overpayment, and errors.

Members heard how the Chief Internal Auditor was pleased to report that there had been a high degree of compliance with the CIPFA “ Code of Practice on Managing the Risk of Fraud and Corruption”

In response to a question by a Member the Chief Internal Auditor advised the Committee that Councillors can assist the Audit Department by raising awareness and alerting members of the public to threats and risks and to provide advice about where to go and obtain advice and guidance and how to report it.

In response to a further question, Members heard how the Covid Act and procurement processes being relaxed has had an ability to undertake planned audit work, however, the Team had managed to integrate themselves into governance processes and were proactive in helping officers to build systems that had controls built into them.

Resolved – That the report be noted.