Agenda item

RESOLVED:

·  To note the progress and performance of the Audit and Anti Fraud Service to 30 September 2022.

9.1  The Head of Audit, Anti-Fraud and Risk Management introduced the

report on the performance of the Audit & Anti-Fraud Service, the areas of work undertaken, and information on current developments in Internal Audit and Anti-Fraud together with statistical information about the work of the investigation teams.

9.2  The Corporate Head of Audit and Fraud highlighted the following:

·  The service was currently undergoing a restructure, addressing

temporary staff solutions, offering new ways of working, increased

flexibility and succession planning; 

·  40 percent of the Audit Plan was in progress in October with 56 audits planned and underway, compared to 35 audits in progress at the same stage in the previous year; 

·  The Council was continuing to recover from the cyber-attack with work

·  that could not be carried out previously now progressing;

·  The implementation of recommendations arising from Internal Audit work remains at a high level and is meeting the Division’s KPI;

·  Overall the number of ‘no’ and ‘limited’ assurance reports was comfortably within the range experienced in previous years, although it was also noted that some audits have not been able to start because of service issues arising from the cyber-attack;

·  Investigation area: estimated saving arising from enquiries:

-  Tenancy Fraud £1,951,400

-  No Recourse to Public Funds £686,095

-  Blue Badge/Parking £11,585

-  Other investigations £10,000

-  Total £2,659,080

·  The number of fraud referrals had increased , driven by tenancy and

  parking cases; 

·  In regard to the National Fraud Initiative the number of outcomes had

significantly reduced;

·  Hackney participation in the 2020/21 National Fraud Initiative was

limited because of the timing of the cyber attack. The following round of

matching was in progress with results in January 2023;

·  The parking investigation outcomes appear lower than in previous

years. This may be a reporting issue following the introduction of a new

case management system;

·  No Recourse to Public Funds explanation of circumstances when

action is taken given to the Committee; 

    Tenancy Fraud Outcomes were recovering well;

·  1000 units of housing had been recovered since 2010 and used to

provide secure accommodation;

9.1  The Committee congratulated officers on the recovery of these 1000 units of housing. Councillor Chapman reiterated the congratulations for this achievement which significantly assisted in meeting housing need in the Borough.

9.2  Councillor Gilbert asked when the postponed audits - climate change,

etc, would be carried out.

9.3  Councillor Garbett referred to the new relationship between housing benefits and the Department of Works and Pensions in regard to information sharing and whether consent was required in this regard. She referred to the human impact in relation to fraud investigation and what support was provided going forward. She asked for an update on the whistleblowing hotline.

9.4  Councillor Troughton asked whether any comparison had been carried out on Housing benefit fraud investigation performance of the Department of Work and Pensions as compared to that of the Council.

9.5  Councillor Baffour asked when properties were recovered were tenants

referred directly.  

8.6  Councillor Gordon referred to the fact that investigations could be stressful for those investigated and asked for details of the average duration of investigations.

8.7  The Head of Anti-Fraud and Risk Management responded as follows:

·  That the postponed audit on climate change would be carried out, if not in the current year, in the following year;

·  Investigations into housing benefit fraud was transferred to the Department for Work and Pensions in 2013/4. It was confirmed that the Department had the authority to carry out these investigations; 

·  The Whistle Blowing policy was agreed by the April 2022 meeting of the Audit Committee and circulated to staff. The provider of the service had changed;

·  No comparison had been carried out on the relative Housing benefit fraud investigation performance. This no longer sat with the Fraud Section of the Council. Officers agreed to investigate if this information was available and circulate to members.

      Action: The Head of Anti-Fraud and Risk Management

In cases where properties are recovered the sub-tenants were signposted to  other services where appropriate. In some cases the tenancies were sourced through the private sector, causing delays;

Timescales varied considerably. Some older tenancy fraud cases were more than one year old, whereas some parking offences are identified proactively and may be dealt with on the spot. Court backlogs are extending the time to resolve some investigation enquiries. 

RESOLVED:

·  To note the progress and performance of the Audit and Anti Fraud Service to 30 September 2022.