Counter fraud and corruption strategy

5.1. The council faces a range of fraud and corruption risks and associated impacts. The most obvious of these impacts is financial loss but there are many other potential negative consequences, including reputational damage, loss of trust, safeguarding issues, data breaches, reduced staff morale, partners and suppliers less willing to work with us and detriment to the well-being of our residents and staff.

5.2. The council recognises the potential for harm caused by fraud and is committed to identifying and managing fraud risks appropriately. The council also recognises that both the nature and likelihood of fraud risks change as the internal and external environments change, for example in times of economic hardship or organisational change, and that therefore fraud risk assessment is a continual, dynamic process.

5.3. Managers have primary responsibility for ensuring there are appropriate arrangements within their areas to prevent and detect fraud and corruption. This includes considering fraud and corruption risks and mitigation measures as part of standard risk management processes. Managers should consider the risks of fraud being committed to benefit the council as well as fraud committed against the council. Managers should also undertake a fraud and corruption risk assessment when new processes and systems are designed and implemented.

5.4. The Audit and Assurance service will support managers by providing advice and guidance on fraud risks and controls as requested. The Audit and Assurance service will also undertake regular horizon scanning for new and emerging fraud threats, and share relevant information with Corporate Leadership Team.

5.5. The following are core fraud risk areas for the council, but these are by no means exclusive:

• Council Tax and Business Rates: False information provided to obtain discounts, exemptions and reduction schemes, failure to report changes in circumstances which may affect the entitlement to such awards or failure to list properties.
• Housing and Tenancy Fraud: fraudulent applications for housing, including the provision of false documents in support of an application, subletting.
• Social Care fraud: overstatement of needs in order to obtain funding, misuse of direct payments by the client or third party, misrepresentation of assets for a financial assessment.
• Cybercrime: Phishing emails or telephone calls to trick the recipient into divulging sensitive information or to take a specific action, for example making an urgent payment.
• Procurement / Commissioning: fraud can occur throughout the commissioning cycle, including cartel risks at tender stage, false or duplicate invoicing, false performance reporting.
• Payroll: false or exaggerated expenses, travel and overtime claims.
• Employee fraud: False information provided in order to gain employment, for example qualifications, job history or references, working for other organisations whilst on sick leave from the council, working for multiple organisations at the same time without appropriate declarations.
• Blue Badge Fraud: use of counterfeit / altered badges, third party use when the blue badge holder is not in the vehicle, use of a deceased person’s blue badge.