Agenda item

The report of the Head of Audit provides a source of assurance that the internal control environment is operating as intended through a summary of the counter fraud activity for the period from April to September 2022.

The report of the Head of Audit provided a source of assurance that the internal control environment is operating as intended through a summary of the counter fraud activity for the period from April to September 2022.

In attendance for this item were:

·  Louise Booth – Head of Audit

·  Louise Ivens – Principal Audit Manager

Members were informed of the following points:

• This was a bi-annual report and covered the period of April to September.
• Page 58 of the agenda pack highlighted the methods used to contact the Counter-Fraud Team for both staff and the members of the public which included the provision of a dedicated inbox, telephone line, post and a ‘do it online’ form for members of staff. The table on page 58 showed the referrals received, by directorate, by the type of concern raised between April and September 2022. The pie chart on page 59 demonstrated the referral method. The referrals received through the ‘other routes’ related to those shared by external agencies such as National Anti-Fraud Network or other Council services seeking advice or assistance.
• Members noted that as at the 1^st October 2022, 21 referrals were being investigated. It was also noted that 23 referrals had been closed in the reporting period.
• Pages 61-65 provided information on investigations relating to Housing Leeds and Insurance Services.
• Members noted the proactive anti-fraud work especially in relation to council tax support.
• Members were advised that as part of counter fraud arrangements, regular communications are sent to staff of current fraud risks and signposting of where to report any concerns. There had been promotion of the Fraud Awareness Training Package. In June a promotion was timed to coincide with World Whistleblower’s Day with a further communication in September which had included a reminder to staff to be vigilant of bank mandate fraud.
• Members were advised of a review on the Anti-Money Laundering Policy, Procedure and Reporting Arrangements. A draft copy had been appended to the submitted report for Member’s information.

In response to questions from Members the Committee were provided with the following information:

·  In relation to a question on internal whistleblowing it was queried what these specific issues related to if this wasn’t confidential information.

·  In relation to the pie chart on page 58 Members queried the section marked ‘others’. The Committee were informed that this section represented other outside bodies and other Council services seeking advice.

·  In relation to a query surrounding those marked as external on the pie chart, it was confirmed that these related to members of the public and would be highlighted as such in the next report.

·  Members were advised that liaison meetings were held with directorates and services to share best practice and consider any risks.

The Committee requested comparison data in relation to Housing Leeds tenanted properties and other fraud work with the core cities and neighbouring authorities for the next report.

RESOLVED – To:

a) Receive the Counter Fraud Update Report covering the period from April to September 2022 (Appendix A) and note the work undertaken by Internal Audit and other service areas during the period covered by the report; and

b) Endorse the Anti Money Laundering Policy and the Anti Money Laundering Policy on a Page (Appendix B) and that any subsequent minor changes are approved by the Chief Officer Financial Services.

c) Receive comparative data from core cities and neighbouring authorities in the next report.