Agenda item
Annual Anti -Fraud Report 2013-14
To note an update of the reactive and Anti-Fraud work undertaken during 2013/14 which captures the work of the Corporate Anti – Fraud Team in regard to Corporate Investigations, Housing Benefit Fraud Team Investigations, Social Housing Fraud Investigations and anti- fraud work around Parking Services.
Minutes:
Tony Qayum (Corporate Fraud and Governance Manager) introduced, and highlighted key points, in the report which:-
· Provided an update of reactive and Anti-Fraud work undertaken during 2013/14.
· Informed AC members of the activity and areas of investigation and work undertaken by Corporate Anti – Fraud Team (CAFT).
Points highlighted by Tony Qayum included:-
· Signposting AC members to:-
o The staff resources allocated to anti-fraud activities set out in the table at para 3.2 of the report.
o Appendix A which set out the background to and legal basis for the National Fraud Initiative (NFI); also information about the 2012/13 NFI and going forward.
o Appendix B which summarised arrangements for the transfer of existing Housing Benefit Fraud (HBF) investigation services to the Department for Work and Pensions (DWP) and briefly outlined the need for future consideration of the resourcing implications for some areas of fraud investigation which were currently bi-products of HBF investigations.
· Key matters arising from the Service Outturn for 2013-14, and in particular that training sessions had been run for staff and external bodies/visitors on Anti- Fraud and Corruption matters (and more were planned for the financial year), together with training exercises with the Risk Management Service and a joint training session for Members. An optional training session on the anti-fraud work undertaken by the authority and the impact of fraud would be run in October, and the role of Members would be covered.
· The success of the NFI for LBTH was summarised including the identification of over £700,000 of fraud and potential error. The initiative had existed for some years and had always yielded significant value.
· The continued provision of monthly governance reports to the Corporate Director of Resources and Monitoring Officer which provided an early warning of issues arising from CAFT activity comfort provided by investigations.
· Good performance from Housing Benefits Investigations with:
o A large increase in sanctions achieved: 151 in 2013/14 with 160 anticipated in 2014/15.
o A rise in court convictions from 42 to 48 in 2013/14 with 60 anticipated in 2014/15.
o A large increase in fraud and potential error from approximately £600k in 2012/13 to £825k in 2013/14. This reflected the level of housing benefit managed by the Authority but also highlighted the need for and added value provided by investigation.
· Good performance on Social Housing recoveries. LBTH had been the first authority to apply for funding to address the abuse of social housing and each year a team of 3 staff successfully identified significant levels of sublets which deprived the homeless of accommodation. A data matching exercise had identified significant numbers of matches that needed investigation and 43 recoveries had been achieved in 2013/14 as well as prevention of 3 illegitimate Right to Buy (RTB) purchases 1n 2013/14 and 12 in 2014/15 with the associated discount savings. There was potential for this area of fraud to double by year end. However Government funding would stop in the near future and the resourcing of this important work needed expeditious consideration.
A discussion followed which focused on clarification being sought and given on the following points:-
· Referencing para 8.3, consideration that the small team staff that undertook social housing recovery work provided excellent value for money given their track record of success, and it was obvious that funding needed to be found to continue the work when Government funding stopped. Minesh Jani (Service Head Risk Management) responded that a funding arrangement with the Homelessness Service was being looked at to ensure the service continued. Chris Holme (Acting Corporate Director Resources) added that 2 funding bids had been submitted to DCLG for anti-fraud work and the Authority had taken a lead on coordinating the work/ data sharing of local authorities in East London. The Social Housing Recovery service would continue to be funded going forward, as preventing criminal offences was a priority for the authority.
· Clarification was sought and given as to the value of social housing recovery per member of staff to assist AC members in quantifying what might be achieved by an increase in resources in this area. Greater partnership working in this area was also discussed. Three members of staff would maintain the current service and value derived from it. It was an area that was difficult to quantify for partnership working arrangements partly because in addition to investigation work much legal work followed a successful investigation.
· Noted that the area of illegal sub-letting of Council property was fast becoming an a focus for hardened criminals and some authorities such as Kensington and Chelsea were devoting significant resources to mitigate this and some RSLs had a full time position devoted to it.
· Concern expressed at the significant increase in attempted illegitimate RTB purchases between last year and this year. There was an incentive for the authority to prevent these due to up to £100k of discount applying to each RTB.
· Whether the transfer of existing HBF investigation services and associated funding to the DWP was irreversible. Yes the service/ staff/ funding would transfer. Data sharing with the DWP had proven difficult in the past and it was in the interest of the DWP for a local team to provide information. However the funding bid to DCLG for partnership working on anti-fraud work by 6 East London Boroughs encompassed this area.
The Chair Moved the recommendation as set out in the reportand it was:-
Resolved
That the contents of the report, be noted.
Supporting documents:
- 4.3 Annual Anti-Fraud Report 2014 AC, item 4.2 PDF 120 KB
- 4.3 Appenxix A - NFI-AC doc Final For Sep 2014 Committee, item 4.2 PDF 115 KB
- 4.3 Appendix B1 - ACDWP Transfer paper 2014-15 Final doc, item 4.2 PDF 48 KB
- 4.3 Appendix B2 - LA CEO phase 2 final, item 4.2 PDF 96 KB