Agenda item

28.1

The Committee received a report from the Senior Finance Manager (Stephen Bower) which informed the Audit and Standards Committee of the outcomes of the work undertaken by Internal Audit on fraud and corruption during 2023/24, and the proposed work for 2024/25.

28.2

The report had been prepared for the meeting of the Committee scheduled to take place on 25 July 2025 that had been cancelled.

28.3

It was noted that the report contained appendices and a checklist to help members understand fraud risks and how they were managed. The report also contained a number of amended policies that were available to help staff understand fraud risk. The Council advocated a zero-tolerance approach to fraud, however was still susceptible to fraud, and specific policies were in place to help deal with fraud.

28.4

It was also noted that the Anti-Fraud and Corruption Policy Statement and Framework outlined the Council’s approach to preventing fraud, by identifying risks and strategies to mitigate them. This incorporated key points from the Council’s Constitution, Members and Officers Code of Conduct and the Council’s values and goals. The aims of the policy were: -

·       To ensure the correct governance arrangements were in place and training of staff to ensure appropriate oversight of staff;

·       To acknowledge the risks that the Council faces and communicate these effectively;

·       To put in place anti-fraud systems and processes to ensure appropriate checking of applications; and

·       To provide resources to pursue fraud in a consistent manner

28.5

Members of the Committee asked questions and the following responses were provided: -

·       A new version of Fraud E-learning had been introduced in 2023. This training had been offered to all staff but was mandatory for managers only.

·       The Council worked with other core cities, and other professional bodies such as the Cabinet office and the Department of Work and Pensions.

·       Managers were expected to play a part in quality control relating to procurement.

·       Officers were constantly ’horizon scanning’ on key fraud areas, regularly attended training courses and received regular national body updates. The National Crime Agency and City of London Police highlighted fraud issues as they arose. There were two levels of reporting fraud: some applications might be a genuine error and would be rejected immediately, and others would require audit checks. The appropriate investigations and sanctions would be made whenever there was a report of fraud.

·       Internal audits considered recent risk areas and also carried out checks on ‘back catalogue’ areas of risk.

·       Officers met with Core City colleagues on a regular basis to compare and update on areas of fraud risk.

·       Timesheet fraud was a relatively low level of fraud, often linked in to other issues and could be difficult to prove. As such, detailed information on this fraud activity was not available.

28.6

RESOLVED: That the Audit and Standards Committee:

a)    notes the content of this report;

b)    notes that the Council’s policies in relation to fraud and corruption have been reviewed and fulfil the required governance arrangements for the Council; and

c)     notes the completed checklist for those responsible for governance (Appendix A).