Fraud update: councils are better at tackling fraud
0Ian O’Donnell is Executive Director of Corporate Resources, Ealing Council
On 8th November the Audit Commission published its annual review of councils’ counter fraud performance, Protecting The Public Purse (PPP). For the first time ever, the headline is that councils are improving, although unsurprisingly the report warns that there is more to do. According to the Commission, councils detected more than 124,000 cases of fraud in 2011/12 totalling £179 million. This compares to 121,000 cases in 2010/11, totalling £185 million. However, councils are facing new fraud risk challenges in areas such as business rates, the Social Fund, schools, Local Welfare Assistance, Right to Buy and Local Council Tax Support. The Annual Fraud Indicator published by the National Fraud Authority (NFA) estimates that councils face a total fraud risk of around £2.2 billion.
PPP acknowledges that there has been a step change in local government’s approach to the threat of fraud. Fighting Fraud Locally, which was launched last April, is local government’s own sector-wide counter fraud strategy, developed with the support of the NFA and backed by the Local Government Association. The Commission urges councils to follow the recommendations set out in Fighting Fraud Locally and to use the tools that have been developed to enhance their efforts.
Under the banner of Fighting Fraud Locally, councils have worked closely with counter fraud experts at the NFA and in the private sector to collect and publish best practice examples and expert guidance, to develop counter fraud tools, and to test new counter fraud approaches through a range of pilots. The results of all this work will be presented at the second Fighting Fraud Locally conference on 6th December in London. The conference will also look at what is planned for the year ahead. You can register for the conference here.
One of the Fighting Fraud Locally pilots was also launched on 8th November. The Tri-borough (of Westminster, Kensington & Chelsea, and Hammersmith & Fulham) held an event covered by ITN and the Sunday Times to launch their month-long fraud awareness campaign, a publicity blitz aimed at getting residents and staff to report fraud, with a hotline provided by Action Fraud, linked to the National Fraud Authority’s reporting centre. Information about frauds reported will be passed on to the National Fraud Intelligence Bureau (NFIB) which is overseen by the City of London Police.
The next day saw the publication of Slipping Through The Net, best practice guidance for councils on fighting insider fraud. This, and the other tools developed for councils through Fighting Fraud Locally, can be found on the CIPFA TISonline website (you will need to be a TISonline member, which most councils already are).
The evidence is that councils have indeed improved their performance in the fight against fraud. This is something to celebrate. The great work to fight fraud done by councils and other public sector bodies will be recognised at the very first Fighting Fraud Awards, held after the Fighting Fraud Locally Conference on 6th December.
Meanwhile, the decision about the future of the NFI and the other Audit Commission tools (including PPP) still hasn’t been taken by DCLG. Consultation with councils on the subject, undertaken as part of the Future of Local Audit Bill consultation, revealed a tsunami of support for the NFA taking on the work. It is hoped that this clear steer from councils will strongly influence the decision, although Cabinet Office and DWP both remain firmly interested.
The LGA is offering some funding for councils working together to combat housing tenancy fraud. These pilots are intended to generate a significant increase in the number of properties recovered and encourage a sustainable approach to counter-fraud activity across council boundaries. The deadline for bids is the 14th December 2012. If you would like to hear more about the pilot, please contact: Warren Leigh, Adviser, Local Government Association at warren.leigh@local.gov.uk
Finally, the Fighting Fraud Locally team produces a quarterly newsletter. Future editions will focus on sharing best practice and successes against fraud that have been secured by councils. If you would like to receive a copy of this newsletter and have not already requested to do so, please email your request to john.baker@rsmtenon.com
