Agenda item

This report summarises the outcome of audit and counter fraud work undertaken in 2017/18 and provides an opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and internal control.

Members considered a report summarising the outcome of audit and counter fraud work undertaken in 2017/18 and providing an opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and internal control.

The Head of Internal Audit, Veritau attended the meeting to present the report and answer Member questions. He clarified that his opinion contained in the report was based on the results of internal audit work, including follow up work to ensure that previously agreed management actions have been implemented. He stated that the report included details of internal audit reports which had been finalised since April’s meeting. There was also detail on counter fraud activity.

In response to questions he stated:

·        In terms of counter fraud savings there was a focus on areas which were most relevant in terms of value to the Council, however there are other areas of fraud which are important to both the community and CYC, for example parking fraud.

·        Sometimes there was not sufficient evidence of wrongdoing during counter fraud investigation, however 56% was a fairly high figure. The focus was on cases which would result in a positive outcome, which was decided during initial assessment.

·        Information on trends could be provided to the Committee. The value of benefit fraud had been shrinking since responsibility was transferred to the Department of Work and Pensions (DWP). More work was being undertaken in Adult Social Care such as providing training to staff on how to report concerns and this was leading to an increase in referrals and outcomes. This was leading to an increase in value in this area.

·        Instances of internal fraud over the last year were relatively low level which showed that controls were working and fraud was being picked up.

·        It was a positive sign that CYC had been selected to take participate in the 2018/19 National Fraud Initiative pilot exercise on Business Rate fraud, as one of 7 groups taking part. CYC was recognised as having a national profile on counter fraud work.

·        On the issue of the Information Governance audit, some schools had not responded at all and some were in the process of academisation, which left the Council with no authority to complete the work. Many schools had now appointed Veritau as their Data Protection Officer so this would allow further work to be undertaken.

·        If Veritau was the Data Protection Officer for a school there were ‘Chinese walls’ in place, so different teams and different reporting lines in place for audits.

Resolved: That Members:

(a)  Note the results of audit and counter fraud work undertaken.

(b)  Note the opinion of the Head of Internal Audit on the adequacy and effectiveness of the council’s framework of governance, risk management and internal control .

(c)  Note the outcome of the Quality Assurance and Improvement Programme and the confirmation that the internal audit service conformed with Public Sector Internal Audit Standards.

(d)  Note the significant control weakness identified during the year which is relevant to the preparation of the Annual Governance Statement.

Reason:

(a) To enable members to consider the implications of audit and counter fraud findings.

(b) To enable members to consider the implications of audit and counter fraud findings.

(c) To enable members to consider the opinion of the Head of Internal Audit.

(d) To enable the Annual Governance Statement to be prepared