Agenda item

Fraud

To consider the report of the Head of Finance.

Minutes:

Documents:

·         Report of the Head of Finance

·         Powys Baseline Assessment for Fraud

·         SWAP Cross-cutting baseline assessment for fraud

·         Audit Wales – Raising Our Game, Tackling Fraud in Wales

 

Discussion:

·         The Chair reminded Members that the report was not around specific cases of fraud but the response to the Audit Wales report, first considered by Committee in December 2020, and subsequent work undertaken by SWAP

·         The SWAP review into fraud risk maturity indicated that frameworks and strategies were in place and effective.  There had been six themes and 27 assessment areas each of which had been given a RAG status.

·         An effective counter fraud team was in place that was appropriately skilled

·         Policies were in place and were being refreshed

·         However, there was a lack of awareness and training across the Council and limited reporting

·         There needed to be greater awareness of avenues for staff and public to report concerns

·         Future internal audit work will be aligned to fraud work and would be more proactive than reactive

·         The cross-partner report indicated that Powys was in second place with more green but also more reds. Local authorities were in similar positions regarding their baseline maturity assessment.

·         The Committee questioned why some issues were described as ‘amber’ when in fact they had not been completed at all and should be ‘red’.  The Assistant Director explained that the assessments covered many criteria and that he was happy with the scorings given.  The document was live and would be reviewed regularly.

·         Fraud work had continued throughout the pandemic, but the reporting had not.  A regular report would be provided for the Governance and Audit Committee going forward. 

·         Many other authorities had lost their fraud investigation specialism

·         £2M overpayments have been recovered over 4 years

·         Policies are in place and had been approved by both Audit Committee and EMT.  These have been rolled out with all officers and Councillors expected to accept the policies

·         There have been 67 investigations in 2021 with 10 cases of fraud proven and one case closed with recommendations to the service for process improvements

·         The Team also provide support and advice to services

·         Weaknesses are identified – a current case has highlighted a process failure, practice and systems and a manipulation of recording systems – EMT have been informed and Internal Audit has been asked to review the work

·         In response to the Audit Wales report, structural changes have been implemented and improvements to training rolled out.

·         The Committee had previously recommended that fraud training be mandatory for all staff – an e-learning package existed but was not currently mandatory, but EMT are reviewing the position

·         The Chair reminded Members that significant values could be involved – anything between £100M and £1B (based on figures estimated by the Cabinet Office)

·         It was key that officers and Members declare their interests and that management are also aware of those interests.  SWAP had undertaken an audit of declarations of interest which had highlighted that elements of the framework were lacking and the process was flawed.  Some actions have been delivered but further work is needed.

 

Outcomes:

·         The Committee were assured that progress was being made

 

 

 

 

Supporting documents: