Agenda item
Progress on National Fraud Initiative 2010 and New Initiative 2012
- Meeting of Standards Advisory Committee, Tuesday, 16th April, 2013 7.30 p.m. (Item 4.1)
- View the background to item 4.1
Minutes:
Mr Tony Qayum, Corporate Anti-Fraud Manager, introduced and summarised key points in the report, which provided a progress update on the National Fraud Initiative (NFI) 2010, an overview of anti-fraud work undertaken by Audit Services over recent months, and details of the new 2012 NFI. In particular Mr Qayum:
· Advised that the value of overpayments identified by the 2010 NFI initiative was now approximately £832k.
· Detailed the nature of cases and outcomes relating to Section 4B, 4E and 5B, 5C, 5D of the appended 2010/11 Outcomes Summary. There had been 12 prosecutions relating to cases categorised in Section 5 compared with 41 the previous year.
A discussion followed which focused on clarification being sought and given on the following points:-
· The total value of monies that would be recovered as a result of the 2010 NFI and the rate of recovery for these. Total value approximately £832k. Given the time needed to recover the monies their full value could not be recovered, however there was a deterrent value going forward associated with such prosecutions. A review would be undertaken in the Summer which focused on strengthening controls to prevent fraud where weaknesses had been found through cases identified by the 2010 NFI.
· What impact Government changes to Benefit payments would have on the NFI and the data available. Penalties identified for cases where there were no grounds for prosecution had risen from the debt plus 30% to debt plus 50%; and Officers envisaged that rather than pay this more people would take their chances in court.
· Whether data matching results at the start of an NFI continued to be examined until all information had been exhausted or whether the matching was refreshed. Given the volume of matches and examination of these in house by directorates with existing resources the cycle to obtain the information investigate and report back was 2 years.
· To what extent the fraud identified in the 2010 NFI would inform planning and prioritisation of resources for the 2012 NFI. The resources allocated for the investigation of Housing Benefit fraud and Social Housing fraud were to be maintained, as in the current economic climate and proximity to the City of London these areas were seen as high risk. It was intended to improve use of in house data matching.
· Given the cost to the Council of errors in some areas how were procedures being made more robust to prevent these in future. The Authority had an ongoing objective to strengthen systems and controls in response to identified weaknesses in order to provide appropriate levels of comfort; however it as accepted that there would always be risk in areas where monies could be claimed.
· The nature/ details of expenses claim fraud reported at Section 4E of the appended 2010/11 Outcomes Summary. 3 cases of obtaining parking permits at an address where the claimant did not live. 3 cases of delayed completion of paperwork for the deceased in a care home, and consequent continuation of payments. 4 case of duplicate payments.
· Progress with reference to the minutes of the SAC held on 17th October, Page 3, Agenda item 4.1 “Anti Fraud Update 2012”, Resolution 1 & 2. The expertise of the Audit Commission and the Authority’s external auditor had been utilised for independent reviews of the Authority’s risk management relating to fraud and to inform planning for this. Mr Barry O’Connor proposed that a report containing a detailed progress update be presented to a future SAC.
· Whether the categorisation of cases in the NFI 2010/11 Authority Summary appended to the report, as High, Medium, Low was a measure of risk or importance. Best data matches were categorised as high and the organisation focused on these first.
The Chair Moved the recommendation set out in the report (taking account of the additional recommendation proposed by Mr O’Connor), and it was:-
Resolved:
1. That the contents of the report be noted; and
2. That a report containing a detailed progress update on the Authority’s use of external audit expertise to undertake a review of the Authority’s risk management arrangements for fraud be presented to a future SAC.
Action by:
Mr Tony Qayum (Corporate Anti-Fraud Manager, Audit Services, Resources).
Supporting documents:
- Standards Advisory Committee NFI update April 2013 docFinal TQ2803131546pm, item 4.1 PDF 103 KB
- NFI summary as at 11 Feb 13 Appendix1 TQ2803131546pm, item 4.1 PDF 37 KB
- Appendix2 NFI summary as at 11 Feb 13 (2) (2) TQ2803131546pm, item 4.1 PDF 44 KB