Format of development plan for Actions by AaronTevis

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									                          Appendix E




Managing the Risk of Fraud –
     Self Assessment
                                    Yes /
                                    No /                                                                                                Target date for
Action                              Partly     Evidence / reference                  Further Action to be Taken            By Who?      completion
1. ADOPTING THE RIGHT STRATEGY - KEY ELEMENTS OF A STRATEGIC APPROACH
1.1 Does the organisation have a       Yes The Council has an Anti-       The Policy and the Strategy will                 Audit and    2009/10 (for Review of
counter fraud and corruption               Fraud, Theft and Corruption    need to be reviewed in due course                Risk         ATF&C Policy and
strategy that can be clearly linked to     Policy and Strategy (AFTCP     to ensure that it continues to reflect           Manager      Strategy)
the organisation's overall strategic       & S) and a Whistle blowing     present practice. The scheduled                  (via the
objectives?                                Policy in place. The AFTCP     date of review is 2009/10.                       Corporate
                                           & S was updated and                                                             Governance
                                           approved by the Executive in                                                    Group)
                                           November 2007
                                           An Anti Fraud and Corruption
                                           leaflet was published and
                                           circulated to all Council and
                                           Liberata staff in October 2007
                                           A whistle blowing leaflet was
                                           circulated in August 2008 and
                                           publicised in the Staff
                                           Newsletter.
                                                                                                                                             st
1.2 Is there a clear remit 'to reduce  Yes The AFT&C Strategy makes it There is a need to ensure that there                Audit and    By 31 March 2010
losses to fraud and corruption and         clear that the Council will    is a consistent message given to all             Risk
corruption to an absolute minimum'         seek to recover losses as a    staff, Members and Contractors                   Manager
covering all areas of fraud and            result of fraud, theft or      used by the Council that Fraud,
corruption affecting the                   corruptions where possible     Theft and Corruption are not
organisation?                              and financially viable.        acceptable. This will be done by:-

                                               The AFT&C Strategy                    o Promoting awareness of the
                                               identifies the role of various          Anti-Fraud, Theft and Corruption
                                               parts of the organisation in            Policy;
                                               reducing losses to fraud and          o Informing staff/Members of the
                                               this is reinforced by the               Council’s stance on F,T & C at
                                               Council’s Financial Procedure           induction;
                                               Rules which allocate                  o Ensuring Contracts include
                                               responsibilities for preventing         reference to the Council’ stance;
                                               and detecting fraud. In               o Ensuring applications forms for
                                               particular, the AFT&C                   Council services make it clear
                                               outlines the role of:-                  that fraud, theft and corruption
                                                    o Members                          are not acceptable.
                                                    o Management
                                                    o Employees


                                                                                 2
                                        Yes /
                                        No /                                                                                                   Target date for
Action                                  Partly    Evidence / reference                    Further Action to be Taken               By Who?     completion
                                                       o Internal Audit
1.3 Are there effective links            Partly   The Council has developed               Further work needs to be                 Audit and   Audit and Risk Manager
between ‘policy’ work (to develop                 an AFT&C Policy to provide              undertaken to produce a clear plan       Risk
an anti-fraud and corruption and                  direction in relation to its work       of actions to be taken to pro-actively   Manager     By Sept 2009
‘zero tolerance’ culture, create a                in this area. Complementing             detect, and where necessary,
strong deterrent effect and prevent               this an AFT&C Strategy has              investigate, fraud.
fraud and corruption by designing                 been produced to implement
and redesigning policies and                      the Policy.
systems) and ‘operational’ work (to
detect and investigate fraud and
corruption and seek to apply
sanctions and recover losses where
it is found)?
1.4 Is the full range of integrated      Partly   The AFT&C Strategy includes             A review of the actions to be taken      Audit and   By Sept 2009
action being taken forward or does                a range of actions, some of             needs to be undertaken in                Risk
the organisation ‘pick and choose’?               which have been                         conjunction with the outcome of this     Manager
                                                  implemented.                            self assessment.
1.5 Does the organisation focus on        Yes     Until 2007/08, no information           Each year a report will be submitted     Audit and   Annually in June of each
outcomes (i.e. reduced losses) and                on the Council’ activities to           to the Accounts and Audit                Risk        year.
not just activity (i.e. the number of             prevent, detect and                     Committee on the Council’s               Manager
investigations, prosecutions, etc.)?              investigate fraud had been              activities to detect and prevent
                                                  formally reported to                    fraud, theft and corruption.
                                                  Members.
                                                  Reports are now prepared
                                                  annually and have been
                                                  submitted in 2008 and 2009.


1.6 Has the strategy been directly        Yes     The Anti-Fraud, Theft and               The Strategy will be kept under          Audit and   Annual Review.
agreed by those with political and                Corruption Policy and                   review and updated as and when           Risk
executive authority for the                       Strategy and the Whistle                required.                                Manager
organisation?                                     blowing Policy were reviewed
                                                  and approved by the
                                                  Council’s Executive.




                                                                                      3
                                       Yes /
                                       No /                                                                                                Target date for
Action                                 Partly     Evidence / reference                 Further Action to be Taken              By Who?     completion
2.0 ACCURATELY IDENTIFYING THE RISKS – MEASURING FRAUD AND CORRUPTION LOSSES
2.1 Are fraud and corruption risks Yes  o Identified on the         o Fraud, theft and Corruption to                           Audit and   o     As an when Risk
considered as part of the                  Council’s Strategic and    be considered when Risk                                  Risk              Registers are reviewed
organisation’s strategic risk              Operational Risk           Registers are reviewed.                                  Manager           (on at least a quarterly
management arrangements?                   Register (as required)   o Internal Audit to continue using                                           basis)
                                        o Taken into consideration    the possibility of fraud, theft                                      o     Annually as part of the
                                           in the development of      and corruption as key issues in                                            Internal Audit Planning
                                           the Internal Audit Plan.   the risk based approach to                                                 process (and 3 yearly
                                                                      audit planning.                                                            as part of the Strategic
                                                                                                                                                 Planning process).

2.2 Is the organisation seeking to       Partly   Generally, on the basis of           In view of the negligible level of      n/a         n/a
identify accurately the nature and                experience to date and given         fraud, theft and corruption
scale of losses to fraud and                      the robustness of the                experienced at the Council, it is not
corruption, using a                               Council’s present system of          considered a good use of resources
                                                  internal control, it is not          to undertake further work in this
   proper definition of fraud based              considered necessary to              area. This matter will, however, be
    in civil law for making accurate              commit resources to this             subject to annual review as part of
    estimates?                                    work.                                the review of this self assessment.
   Professional statistical                                                           Should it be necessary to change
    methodology for making                        The Council does, however,           this assessment, further work will
    accurate estimates and                        actively participate in the          be undertaken.
    building in a proper level of                 National Fraud Initiative
    independent validation?                       which helps to focus limited
                                                  resources.
2.3 Does the organisation use          Partly     The Council uses its past            Continued reference to past             Audit and   Annually as part of the
accurate estimates of losses to                   knowledge and experience of          knowledge and experience will be        Risk        Internal Audit Planning
make informed judgements about                    fraud, theft and corruption to       used to determine the extent of         Manager     process.
levels of budgetary investment in                 determine the amount of              investment in work to counter fraud
work to counter fraud and                         resources required for dealing       and corruption.
corruption?                                       with potential occurrences.

                                                  The size and workload of the
                                                  Benefit Fraud Investigation
                                                  Team is a matter of
                                                  monitoring by the Client
                                                  Management Team of the
                                                  Council.

                                                                                   4
                                        Yes /
                                        No /                                                                                             Target date for
Action                                  Partly   Evidence / reference                  Further Action to be Taken            By Who?     completion
3.0 CREATING AND MAINTAINING A STRONG STRUCTURE – HAVING THE NECESSARY AUTHORITY AND SUPPORT
3.1 Do those tasked with countering    Yes Details of authority are set out No further action necessary n/a                              n/a
fraud and corruption have the              in the:-
appropriate authority needed to
pursue their remit effectively, linked      o ATF&C Policy and
to the organisation’s counter fraud              Strategy;
and corruption strategy?                    o Council’s Scheme of
                                                 Delegation
                                            o Financial Procedure
                                                 Rules
3.2 Is there strong political and      Yes The ATF&C Policy and             No further action necessary n/a                              n/a
executive support for work to              Strategy has been approved
counter fraud and corruption?              by both the Council and the
                                           Executive.

                                                 An annual report on activities
                                                 around detecting and
                                                 preventing fraud, theft and
                                                 corruption will be submitted to
                                                 the Accounts and Audit
                                                 Committee.




3.3 Is there a level of financial         Yes    The Council uses its past             Continued reference to past           Audit and   Annually as part of the
investment in work to counter fraud              knowledge and experience of           knowledge and experience will be      Risk        Internal Audit Planning
and corruption that is proportionate             fraud, theft and corruption to        used to determine the extent of       Manager     process.
to the risk that has been identified?            determine the amount of               investment in work to counter fraud
                                                 resources required for dealing        and corruption
                                                 with potential occurrences.

                                                 The size and workload of the
                                                 Benefit Fraud Investigation
                                                 Team is a matter of
                                                 monitoring by the Client
                                                 Management Team of the
                                                 Council.

                                                                                   5
                                       Yes /
                                       No /                                                                                            Target date for
Action                                 Partly   Evidence / reference                Further Action to be Taken             By Who?     completion
SPECIALIST TRAINING AND ACCREDITION
3.4 Are all those working to counter Partly     o   Benefit Fraud                   Training in counter fraud techniques   Audit and   Training to be determined
fraud and corruption professionally                 Investigators are               to be arranged.                        Risk        as part of annual Personal
trained and accredited for their                    Professional In Security                                               Manager     Development Plans (or
role?                                               (PINS) trained.                                                                    sooner if possible and
                                                                                                                                       within resources).
                                                o   Internal Audit do not
                                                    have formalised training
                                                    qualifications but attend
                                                    the annual Fraud Forum
                                                    organised by CIPFA
                                                    each year to keep up to
                                                    date on fraud issues

3.5 Do those employees who are           Yes    o   Benefit Fraud                   The provision of ongoing training      Relevant    Annually as part of the
trained and accredited formally                     Investigators attend            will continue to be identified         Service     Personal Development
review their skills base and attend                 refresher training              annually as part of the Personal       Managers    Planning process.
regular refresher courses to ensure                 provided by National            Development Plans of each
they are abreast of new                             Anti-Fraud Network.             member of staff.
developments and legislation?
                                                o   The Benefit Fraud
                                                    Manager attends a
                                                    quarterly network group
                                                    of East Lancs authorities
                                                    to share good practice
                                                    and discuss topical items
                                                    of benefit fraud.

                                                o   The Audit and Risk
                                                    Manager attends CIPFA
                                                    Better Governance
                                                    Forum workshops and
                                                    the annual CIPFA fraud
                                                    Forum.

3.6Are all those working to counter      Yes    Benefit Fraud Investigators         No further action                      n/a         n/a
fraud and corruption undertaking                and Internal Audit employees
this work in accordance with a clear            have signed Codes of

                                                                                6
                                         Yes /
                                         No /                                                                                        Target date for
Action                                   Partly   Evidence / reference                Further Action to be Taken         By Who?     completion
ethical framework and standards of                Conduct pertinent to their
personal conduct?                                 roles in addition to being
                                                  subject to the Council’s
                                                  overall employee code of
                                                  conduct
PROPRIETY CHECKS
3.7 Is an effective propriety              Yes    o    The Council’s Human            No further action                  n/a         n/a
checking process – implemented by                      Resources Section
appropriately trained staff – in place                 ensures that all
that includes appropriate action                       appointments are
where individuals fail the check?                      subject to references.
                                                  o    Criminal Records
                                                       Bureau checks are also
                                                       undertaken where it is
                                                       considered necessary
                                                       for both Members and
                                                       Staff.
                                                  o    When contracts are let,
                                                       there is some checking
                                                       of the propriety of
                                                       contractors

3.8 Does the organisation regularly        Yes    Internal Audit undertake an         The Annual Internal Audit Plan     Audit and   Annually, as part of the
review its propriety checking and                 annual audit of the Council’s       should continue to include these   Risk        Audit Planning process.
are random checks carried out to                  Human Resources                     reviews as a key risk area.        Manager
ensure that it is implemented?                    procedures and procedures
                                                  for letting contracts. The
                                                  outcome of these audit is, if
                                                  necessary, reported to
                                                  Management and thereafter
                                                  to the Accounts and Audit
                                                  Committee.

DEVELOPING EFFECTIVE RELATIONSHIPS WITH OTHER ORGANISATIONS
3.9 Are there framework           Yes o 3 year SLA with      No further action                                           n/a         n/a
agreements in place to work with         Department for Work
other organisations and agencies?        and Pensions


                                                                                  7
                                     Yes /
                                     No /                                                                                 Target date for
Action                               Partly   Evidence / reference               Further Action to be Taken   By Who?     completion
                                              o   Subscription to National
                                                  Anti Fraud Network

                                              o   Joint Working as part of
                                                  the National Fraud
                                                  Initiative

                                              o   Joint working with the
                                                  Police as and when
                                                  necessary.
3.10 Are the framework agreements    Yes      As above                           As above                     n/a         n/a
focussed on the practicalities of
common work?
3.11 Are there regular meetings to   Yes      o   Regular liaison takes          No further action            n/a         n/a
implement and update these                        place between DWP,
agreements?                                       Benefit Fraud
                                                  Investigators and NAFN

                                              o East Lancashire network
                                                of Benefit Managers,
                                                Fraud Managers etc.
4.0 TAKNG ACTION TO TACKLE THE PROBLEM – TAKING THE FULL RANGE OF ACTION AND INTEGRATING DIFFERENT STRANDS
4.1 Is the organisation undertaking Partly Via pro-active fraud work       It is accepted that further work Audit and     To be determined
the full range of necessary action         including:-                     could be undertaken in this area Risk
(see also 1.3)?                                                            learning from best practice      Manager /
                                            o Review of AFT&C Policy examples of other organisations        Benefit Fraud
                                                and Strategy;                                               Team
                                            o Reviewing Financial
                                                Procedure Rules;
                                            o Producing leaflets on the
                                                AFT&C Policy and
                                                Strategy for all staff;
                                            o Maintaining Risk
                                                Registers to ensure the
                                                potential for fraud, theft
                                                and corruption continue
                                                to be recognised issues;
                                            o Actively participating in

                                                                             8
                                        Yes /
                                        No /                                                                                               Target date for
Action                                  Partly    Evidence / reference                  Further Action to be Taken             By Who?     completion
                                            the National Fraud
                                            Initiative;
CULTURE, DETERRENCE AND PREVENTION FRAMEWORK
4.2 Does the organisation have a   Partly o A reminder is circulated                    Further action is required, for        Audit and
clear programme of work attempting          to all staff in November                    example:-                              Risk
to create a real anti-fraud and             /December each year.                         o Consideration needs to be           Manager
corruption and zero tolerance               The Whistle blowing                              given to ways of raising
culture (including strong                   policy, the AFT&C                                awareness of the potential for
arrangements to facilitate whistle          Policy, Gifts and                                fraud, theft and corruption and
blowing)?                                   Hospitality Code of                              how this can be prevented;
                                            Conduct, financial and                       o Likewise, the Council’s
                                            contract procedure rules                         arrangements for
                                            are all referred to.                             Whistleblowing need to be
                                                                                             refreshed and re-launched.
                                                                                                                                                 st
                                                  o    As from 2009 a slot will                                                            By 31 July 2009
                                                       be taken in the Induction
                                                       process for all incoming
                                                       staff with regard to
                                                       awareness of Anti Fraud,
                                                       Theft and Corruption
                                                       strategies.

4.3 Are there clear goals for this        Yes     The aim is always to                  No further action                      n/a         n/a
work (to maximise the percentage                  maximise the percentage of
of staff and public who recognise                 staff and public who
their responsibilities to protect the             recognise their
organisation and its resources)?                  responsibilities and to protect
                                                  the organisation and its
                                                  resources.




4.4 Is this programme of work being      Partly   Following the Use of                  Actions are required which seek to     Chief       By August 2009
effectively implemented?                          Resources Assessment for              improve the Council’s Use of           Finance
                                                  2007, the External Auditors           Resources scores in this area.         Officer
                                                  commented that the Council            These actions are specifically set

                                                                                    9
                                      Yes /
                                      No /                                                                                         Target date for
Action                                Partly    Evidence / reference            Further Action to be Taken             By Who?     completion
                                                has ‘a strong anti-fraud        out in the Use of Resources Action
                                                culture which covers both       Plan.
                                                Council services and its key
                                                partners’

                                                The Council received a score
                                                of 3 for its internal control
                                                system and 3 for having
                                                proper arrangements in place
                                                to promote and ensure
                                                probity and propriety in the
                                                conduct of its business.
4.5 Are there arrangements in place    Partly   An Anti Fraud Survey will be    Further work needs to be               Audit and   By December 2009
to evaluate the extent to which a               launched in June 2009 to all    undertaken to assess the results of    Risk
real anti-fraud and corruption                  employees. Consideration to     the survey and determine further       Manager
culture exists or is developing                 be given to a similar survey    strategy to develop the AF &C
throughout the organisation?                    for Council Members             culture throughout the organisation.
4.6 Are agreements in place with        Yes      o Regular liaison takes        No further action                      n/a         n/a
stakeholder representatives to work                   place between DWP,
together to counter fraud and                         Benefit Fraud
corruption?                                           Investigators and NAFN

                                                o   East Lancashire network
                                                    of Benefit Managers,
                                                    Fraud Managers etc.

                                                o   3 year SLA with
                                                    Department for Work
                                                    and Pensions

                                                o   Subscription to National
                                                    Anti Fraud Network


                                                o   Joint Working as part of
                                                    the National Fraud
                                                    Initiative



                                                                               10
                                       Yes /
                                       No /                                                                                            Target date for
Action                                 Partly    Evidence / reference               Further Action to be Taken            By Who?      completion
                                                 o    Joint working with the
                                                      Police as and when
                                                      necessary.

4.7 Have arrangements been made         Partly   As above                           No further action                     n/a          n/a
to ensure that stakeholder
representatives benefit from
successful counter fraud and
corruption work?

DETERRENCE
                                                                                                                                             st
4.8 Does the organisation have a        Partly   The Council has approved an        Further work is required to promote   Audit and    By 31 March 2009
clear programme of work attempting               AFT&C Policy and Strategy          awareness of the Council’s stance     Risk
to create a strong deterrent effect?             as part of its work to create a    on fraud, theft and corruption both   Manager
                                                 strong deterrent effect.           internally with staff, members and    /Benefit
                                                                                    contractors and externally to the     Fraud Team
                                                                                    public.

                                                                                    This may take the form of better
                                                                                    coverage on the Council’s website,
                                                                                    through local newspapers and
                                                                                    potentially having fraud awareness
                                                                                    campaigns.
4.9 Does the organisation have a        Partly   o    The Council has made
clear programme of work to                            available the AFT&C
publicise the:                                        Policy and Strategy to all
                                                      members of staff and
       hostility of the honest                       Members;
        majority to fraud and                    o    A leaflet about the
        corruption                                    AFT&C Strategy and
       effectiveness of                              Policy has been
        preventative arrangements                     circulated to all staff and
       sophistication of                             Members;
        arrangements to detect                   o    The Council applies
        fraud and corruption                          sanctions appropriate to
       professionalism of those                      the incidence of fraud,
        investigating fraud and                       theft or corruption;
        corruption and their ability             o    Where possible, the

                                                                                11
                                       Yes /
                                       No /                                                                                            Target date for
Action                                 Partly   Evidence / reference               Further Action to be Taken             By Who?      completion
        to uncover evidence                          Council publicises the
       likelihood of proportionate                  outcome of material
        sanctions being applied;                     fraud investigations;
        and                                     o    A whistle blowing leaflet
       likelihood of losses being                   was circulated in August
        recovered?                                   2008 and publicised in
                                                     the Staff Newsletter.

4.10 Has the organisation                Yes    o    Press releases are made       No further action. The Council         Audit and    Ongoing
successfully publicised work in this                jointly by the DWP and         seeks to achieve a balance             Risk
area?                                               the authority (DWP lead        between publication of fraudulent      Manager /
                                                    role)                          activity                               Human
                                                                                                                          Resources
                                                o    Extract from Lancashire                                              Manager /
                                                    Evening Telegraph                                                     Benefits
                                                                                                                          Fraud Team
                                                                                                                          Leader
4.11 Has the publicity been targeted     Yes    Major frauds involving             Publicity to be sought when it is      Audit and    Ongoing
at the areas of greatest fraud                  financial loss carried out in      considered appropriate to the          Risk
losses?                                         partnership with the DWP           circumstances of the fraud and the     Manager /
                                                                                   need to promote deterrence             Benefits
                                                                                                                          Fraud Team
                                                                                                                          Leader
PREVENTION
4.12 Does the organisation seek to       Yes    o    As new policies and           Continue to encourage involvement      Audit and    Ongoing
design fraud and corruption out of                   systems are devised and       of Internal Audit in the development   Risk
new policies and systems and to                      where it is considered        of policies and systems at an early    Manager
revise existing ones to remove                       appropriate, access to        stage to ensure
apparent weaknesses?                                 Internal Audit is available   opportunities/weaknesses that
                                                     to comment as                 might result in fraud, theft or
                                                     necessary on aspects of       corruption are minimised.
                                                     the system;
                                                o    As part of general
                                                     internal audit work, the
                                                     Internal Audit Unit review
                                                     existing systems and the
                                                     application of policies to
                                                     determine weaknesses

                                                                                 12
                                         Yes /
                                         No /                                                                                            Target date for
Action                                   Partly   Evidence / reference                Further Action to be Taken             By Who?     completion
                                                        that could result in fraud,
                                                        theft and corruption.
                                                        Recommendations are
                                                        made to improve
                                                        systems as a
                                                        consequence.
4.13 Do concluding reports on              Yes    For those investigations that       Ensure that each report following an   Audit and   Ongoing
investigations include a specific                 have taken place, and where         investigation has a mandatory          Risk
section on identified policy and                  the policy and systems              section for identified weaknesses      Manager
systems weaknesses that allowed                   weaknesses have been                and proposed improvements.
the fraud and corruption to take                  identified, specific
place?                                            recommendations are made
                                                  to make improvements in the
                                                  systems/policy as a
                                                  mechanism to prevent future
                                                  potential frauds, theft and
                                                  corruption.
4.14 Is there a system for                 Yes    Where weaknesses are                No further action                      n/a         n/a
considering and prioritising action to            identified as part of the
remove these identified                           Internal Audit process,
weaknesses?                                       recommendations are made
                                                  to auditees which are
                                                  prioritised according to:-

                                                      o    The level of control
                                                           weakness (whether it
                                                           is major, important or
                                                           minor weakness);
                                                      o    The perceived
                                                           financial risk (based
                                                           on the value of
                                                           potential financial
                                                           loss if the
                                                           weaknesses are dealt
                                                           with)




                                                                                  13
                                        Yes /
                                        No /                                                                                             Target date for
Action                                  Partly    Evidence / reference              Further Action to be Taken           By Who?         completion
DETECTION
4.15 Are there effective ‘whistle        Partly   Following the Use of              Actions are required which seek to   Audit an Risk   By August 2009
blowing’ arrangements in place?                   Resources Assessment for          improve the Council’s Use of         Manager
                                                  2007, the External Auditors       Resources scores in this area.
                                                  commented that the Council        These actions are specifically set
                                                  has ‘a strong anti-fraud          out in the Use of Resources Action
                                                  culture which covers both         Plan.
                                                  Council services and its key
                                                  partners’

                                                  The Council received a Use
                                                  of Resources score of 3 for its
                                                  internal control system and 3
                                                  for having proper
                                                  arrangements in place to
                                                  promote and ensure probity
                                                  and propriety in the conduct
                                                  of its business.

4.16 Are analytical intelligence          Yes     The Council does not              No further action                    n/a             n/a
techniques used to identify potential             specifically use its own
fraud and corruption?                             bespoke analytical
                                                  intelligence techniques to
                                                  identify potential fraud and
                                                  corruption other than through
                                                  the normal course of internal
                                                  audit work.

                                                  The Council does, however,
                                                  actively participate in the
                                                  National Fraud Initiative
                                                  which does such techniques.
4.17 Are there effective                  Yes     As indicated elsewhere, the       No further action                    n/a             n/a
arrangements for collating, sharing               Council does have
and analysing intelligence?                       arrangements in place to
                                                  collate, share and analyse
                                                  intelligence. This is with
                                                  organisations such as:-

                                                                                  14
                                       Yes /
                                       No /                                                                                             Target date for
Action                                 Partly    Evidence / reference              Further Action to be Taken           By Who?         completion

                                                     o   Department for Work
                                                         and Pensions;
                                                     o   National Anti-Fraud
                                                         Network;


4.18 Are there arrangements in           Yes     The AFT&C Strategy includes       No further action                    n/a             n/a
place to ensure that suspected                   a Fraud, Theft and Corruption
cases of fraud or corruption are                 Response Plan which states
reported promptly to the appropriate             clearly, using flowcharts, what
person for further investigation?                actions should be taken if
                                                 fraud, theft and/or corruption
                                                 is reported.

4.19 Are arrangements in place to        Yes     As indicated above, as part of    No further action                    n/a             n/a
ensure that identified potential                 AFT&C Strategy, there is a
cases are promptly and                           Response Plan which drives
appropriately investigated?                      when an investigation is
                                                 necessary and how it is
                                                 conducted.
4.20 Are proactive exercises             Yes     Pro-active work is undertaken     No further action                    n/a             n/a
undertaken in key areas of fraud                 as part of the Annual Internal
risk or known systems                            Plan. Annually, the Audit Plan
weaknesses?                                      is reviewed to determine
                                                 areas of key risk (where
                                                 policies or systems may have
                                                 changed resulting in a
                                                 heightened risk of fraud, theft
                                                 or corruption).

INVESTIGATION
4.21 Is the organisation’s              Partly   Following the Use of              Further action is need to focus on   Audit and       By March 2009
investigation work effective?                    Resources Assessment for          outcomes from investigative work,    Risk
                                                 2007, the External Auditors       and in particular the recovery of    Manager /
                                                 commented that the Council        losses arising from fraud, theft     Benefit Fraud
                                                 has ‘a strong anti-fraud          and/or corruption. This self         Team
                                                 culture which covers both         assessment will be the basis of

                                                                               15
                                       Yes /
                                       No /                                                                                        Target date for
Action                                 Partly   Evidence / reference              Further Action to be Taken       By Who?         completion
                                                Council services and its key      developing this work.
                                                partners’

                                                The Council received a score
                                                of 3 for its internal control
                                                system and 3 for having
                                                proper arrangements in place
                                                to promote and ensure
                                                probity and propriety in the
                                                conduct of its business .

                                                The Council’s general
                                                investigative work is
                                                considered to be effective
                                                and in particular in Benefits,
                                                in conjunction with the DWP,
                                                there have been at least 3
                                                significant successes in
                                                uncovering and prosecuting
                                                major fraud.
4.22 Is it carried out in accordance     Yes    As part of the AFT&C, there       No further action                n/a             n/a
with clear guidance?                            is a specifically designed
                                                flowchart outlining the
                                                procedures to be followed in
                                                conducting an investigation.

4.23 Do those undertaking                Yes    The Council’s Financial           No further action other than     Audit and       Ongoing
investigations have the necessary               Procedure Rules, Scheme of        ensuring that staff skills and   Risk
powers, both in law, where                      Delegation and the                knowledge remain up to date in   Manager /
necessary, and within the                       arrangements between the          areas such as PACE, RIPA etc     Benefit Fraud
organisation?                                   Council and Liberata provide                                       Team
                                                the necessary powers for
                                                staff to undertake
                                                investigations.

                                                Relevant staff have training in
                                                PACE and use of RIPA.



                                                                                 16
                                       Yes /
                                       No /                                                                                               Target date for
Action                                 Partly    Evidence / reference              Further Action to be Taken             By Who?         completion
4.24 Are referrals handled and           Yes     Each investigation is different   No further action                      n/a             n/a
investigations undertaken in a                   and as a consequence it is
timely manner?                                   not possible to place
                                                 timescales on progress.
                                                 However, each is handled as
                                                 efficiently as possible and is
                                                 referred when it is considered
                                                 necessary to do so.
4.25 Does the organisation have         Partly   Following the Use of              Further action is needed to focus on   Audit and       By August 2009
arrangements in place for                        Resources Assessment for          outcomes from investigative work,      Risk
assessing the effectiveness of                   2007, the External Auditors       and in particular the recovery of      Manager /
investigations?                                  commented that the Council        losses arising from fraud, theft       Benefit Fraud
                                                 has ‘a strong anti-fraud          and/or corruption. This self           Team
                                                 culture which covers both         assessment will be the basis of
                                                 Council services and its key      developing this work.
                                                 partners’

                                                 The Council received a score
                                                 of 3 for its internal control
                                                 system and 3 for having
                                                 proper arrangements in place
                                                 to promote and ensure
                                                 probity and propriety in the
                                                 conduct of its business. As
                                                 indicated elsewhere, the
                                                 External Auditors

SANCTIONS
4.26 Does the organisation have a        Yes     o    The Council has              No further action                      n/a             n/a
clear and consistent policy on the                    disciplinary procedures
application of sanctions where fraud                  which would be used
or corruption is proven to be                         where staff commit
present?                                              offences (and
                                                      notwithstanding Police
                                                      involvement thereafter);
                                                 o    The Council also has a
                                                      Standards Committee
                                                      which would deal with

                                                                                 17
                                        Yes /
                                        No /                                                                                                Target date for
Action                                  Partly   Evidence / reference              Further Action to be Taken               By Who?         completion
                                                       matters related to
                                                       Members;
                                                  o In relation to Benefit
                                                       Fraud, the Council
                                                       utilises those sanctions
                                                       available (administrative
                                                       penalties for example)
                                                       depending on the
                                                       circumstances of each
                                                       fraud committed.
4.27 Are all possible sanctions –         Yes    The Council considers all         No further action                        n/a             n/a
disciplinary/regulatory, civil and               sanctions appropriate to the
criminal – considered?                           offence committed and in the
                                                 context of what is considered
                                                 by Management as best in
                                                 the public interest.
4.28 Does the consideration of            Yes    Any consideration of              No further action                        n/a             n/a
appropriate sanctions take place at              sanctions is only made
the end of the investigation when all            following a thorough
the evidence is available?                       investigation. This is set out
                                                 in the Council’s procedures
                                                 for investigations.
4.29 Does the organisation monitor        Yes    Benefit Fraud Team monitors       Subject to resources being               Audit and       By December 09
the extent to which the application              the amount of overpayments        available, consideration will be         Risk
of sanctions is successful?                      recovered in all sanction         given to what further action the         Manager /
                                                 cases.                            Council could undertake to               Benefit Fraud
                                                 Internal Audit apply sanctions    determine the extent of success          Team
                                                 to fraud cases wherever           with the application of sanctions
                                                 applicable and recover
                                                 monies wherever possible.

REDRESS
4.30 Does the organisation have a         Yes    The Council’s AFT&C Policy        The Policy and the Strategy will         Corporate       2009/10 (for Review of
clear policy on the recovery of                  states that the Council will:-    need to be reviewed in due course        Governance      ATF&C Policy and
losses incurred to fraud and                                                       to ensure that it continues to reflect   Group           Strategy)
corruption?                                      ‘Take all necessary and           present practice. The scheduled
                                                 appropriate actions where         date of review is 2009/10.
                                                 evidence of fraud, theft and

                                                                                  18
                                        Yes /
                                        No /                                                                                        Target date for
Action                                  Partly   Evidence / reference                 Further Action to be Taken        By Who?     completion
                                                 corruption comes to light’.

                                                 Equally it states that the
                                                 Council will pursue
                                                 prosecution where it is
                                                 considered relevant to do so.

                                                 Recent incidences of benefit
                                                 fraud demonstrate that the
                                                 Council, in conjunction with
                                                 other Agencies, will use both
                                                 criminal and civil court to
                                                 recover losses where
                                                 possible.
4.31 Is the organisation effective in     Yes    During 2008/09, the Council          Consider providing monitoring     Audit and   Ongoing
recovering any losses incurred to                has issued 44 sanctions and          information on cases other than   Risk
fraud and corruption?                            had successful prosecutions          Benefit Fraud                     Manager/
                                                 on 22 occasions.                                                       Benefits
                                                                                                                        Manager
                                                 In relation to benefit fraud
                                                 overpayments, these are
                                                 either recovered from
                                                 ongoing benefit entitlement,
                                                 direct invoicing or bailiff/legal
                                                 action

                                                 HB Fraud overpayments and
                                                 recovery are monitored on a
                                                 quarterly basis and figures for
                                                 08/09 were reported to A & A
                                                 Committee June 09.
4.32 Does the organisation use the        Yes    The Council’s AFT&C Policy           No further action                 n/a         n/a
criminal and civil law to the full in            states that the Council will:-
recovering losses?
                                                 ‘Take all necessary and
                                                 appropriate actions where
                                                 evidence of fraud, theft and
                                                 corruption comes to light’.


                                                                                     19
                                     Yes /
                                     No /                                                                                            Target date for
Action                               Partly   Evidence / reference             Further Action to be Taken            By Who?         completion

                                              Equally it states that the
                                              Council will pursue
                                              prosecution where it is
                                              considered relevant to do so.

                                              Recent incidences of benefit
                                              fraud demonstrate that the
                                              Council, in conjunction with
                                              other Agencies, will use both
                                              criminal and civil court to
                                              recover losses where
                                              possible.
4.33 Does the organisation monitor     Yes    Given the incidences of fraud,   Details of the monitoring will be     Audit and       Annually, in June of each
proceedings for the recovery of               theft and/or corruption          incorporated into the Annual Report   Risk            year.
losses?                                       generally is low, monitoring     on Benefits work which will be        Manager /
                                              of the proceedings for the       reported to the Accounts and Audit    Benefit Fraud
                                              recovery of losses is            Committee in June of each year.       Team
                                              undertaken on a case by
                                              case basis.

                                        In relation to Benefits,
                                        monitoring of recovery in
                                        relation to fraud is monitored
                                        by Liberata and is reported
                                        along with other information
                                        on overpayments
4.34 What is the organisation’s     n/a This information is being      n/a                                           n/a             n/a
successful recovery rate?               collated at present
5.0 DEFINING SUCCESS – FOCUSING ON OUTCOMES AND NOT MERELY ACTIVITY
5.1 Are there clear outcomes        Yes The ultimate aim of work to    No further action                             n/a             n/a
described for work to counter fraud     counter fraud, theft and
and corruption?                         corruption is to minimise the
                                        occurrence of such activity
                                        and therefore the financial
                                        loss to the Council and tax
                                        payers of Pendle.


                                                                              20
                                       Yes /
                                       No /                                                                              Target date for
Action                                 Partly   Evidence / reference              Further Action to be Taken   By Who?   completion
                                                The AFT&C Policy and
                                                Strategy details clearly the
                                                outcomes anticipated from
                                                the work undertaken in this
                                                area.

5.2 Do the desired outcomes relate       Yes    The AFT&C Policy and              No further action            n/a       n/a
to the actual sums lost to fraud and            Strategy indicate that the
corruption?                                     Council outcome of work in
                                                this area is to seek to recover
                                                losses as a result of fraud,
                                                theft and corruption.




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