Issue - meetings

To consider a report by the Benefits Manager on the Workplan for the Corporate Fraud Team following the transfer of Housing Benefit Fraud investigations to the Department for Work and Pensions and the Council’s revised Fraud Prosecution Policy.

 i.  Approves the Corporate Fraud Team Workplan 2015/17, attached as Appendix 1 of the Officer’s report.

ii.  Approves the revised Fraud Prosecution Policy, attached as Appendix 2 of the Officer’s report.

iii.  Endorses that monitoring the delivery of the Workplan be overseen by the Executive Councillor for Customer Services alongside Annual Reports to the Corporate Governance Panel.

The Cabinet received a report from the Benefits Manager, which was presented by the Head of Customer Service (a copy of which is appended in the Minute Book) regarding the Workplan for the Corporate Fraud Team following the transfer of Housing Benefit fraud investigations to the Department for Work and Pensions (DWP).

In May 2015 the responsibility for investigating allegations of Housing Benefit fraud transferred to the DWP.  Three Investigating Officers transferred to the DWP and the in-house team now consisted of a Team Leader, one Investigating Officer and an Intelligence Officer. 

Since then the Team had been completing the remaining residual work following the DWP transfer, including the preparation of a number of Housing Benefit cases for prosecution.  The Workplan had been developed around the types of fraud that currently formed the majority of the work for the Team, as well as new and emerging threats, including Council Tax Support fraud; Council Tax discount fraud; Housing Tenancy fraud and Business Rates fraud. 

Regarding the productivity of the Team it was explained that between April and October 2015 over 400 referrals were received and a significant value of fraud identified including the recovery of six social housing properties that had been re-allocated to families in genuine need.  The value of the fraud identified outweighed the staffing costs of the Fraud Team and the related software costs. Having a Corporate Fraud Team was considered valuable in the deterrent against fraud.

In responding to questions regarding the success at recovering fraud once identified it was explained that Housing Benefit fraud was difficult to recover.  However, responsibility for this had now transferred to the DWP.  The Council was able to issue £70 penalty notices for Council Tax Discount Fraud.  Although the Team no longer investigated Housing Benefit fraud, discrepancies identified whilst investigating Council Tax Support/Council Tax Discount fraud often resulted in the overpayment of Housing Benefit. 

With different types of fraud being investigated, it had required the Fraud Prosecution Policy to be amended including reference to the legislation used in prosecuting these new areas.  The Cabinet had approved the revised Fraud Prosecution Policy that established the legislation and process that Investigating Officers had to adhere to when considering the action to take following fraud investigation. 

Having considered the comments of the Corporate Governance Panel and the Overview and Scrutiny Panel (Economic Well-Being) the Cabinet

RESOLVED

to

 i.  approve the Corporate Fraud Team Workplan 2015/17, attached as Appendix 1 of the Officer’s report.

ii.  approve the revised Fraud Prosecution Policy, attached as Appendix 2 of the Officer’s report.

iii.  endorse that monitoring the delivery of the Workplan be overseen by the Executive Councillor for Customer Service alongside Annual Reports to the Corporate Governance Panel.

To consider a report by the Benefits Manager seeking approval of the Corporate Fraud Team’s work plan.

(Councillor D M Tysoe, Executive Councillor for Customer Services, was in attendance for this item).

With the aid of a report by the Head of Customer Services (a copy of which is appended in the Minute Book) the Panel gave consideration to the Fraud Workplan and a revised Prosecution Policy. The Workplan had been produced following the transfer of responsibility for Housing Benefit fraud to the Department for Work and Pensions. It incorporated analysis of the areas of work that presented the most risk to the Council and of emerging risks facing local authorities.

RESOLVED

  that the Cabinet be recommended to:

·  approve the Fraud Workplan;

·  approve the revised Prosecution Policy, and

·  authorise the Executive Councillor for Customer Services to monitor the delivery of the Workplan alongside annual reports to the Corporate Governance Panel.

To consider a report on the Workplan for the Corporate Fraud Team following the transfer of Housing Benefit fraud investigations to the Department for Work and Pensions and the Council’s revised Fraud Prosecution Policy.

The Panel received a report from the Benefits Manager (a copy of which is appended in the Minute Book) regarding the Workplan for the Corporate Fraud Team following the transfer of Housing Benefit fraud investigations to the Department for Work and Pensions (DWP).

In May 2015 the responsibility for investigating allegations of Housing Benefit fraud transferred to the DWP.  Three Investigating Officers transferred to the DWP and the in-house team now consisted of a Team Leader, one Investigating Officer and an Intelligence Officer. 

It was explained to the Panel that the Workplan had been developed around the types of fraud that currently formed the majority of the work for the Team, as well as new and emerging threats, including Council Tax Support fraud; Council Tax discount fraud; Housing Tenancy fraud and Business Rates fraud.  The Corporate Fraud Team had been working with service areas across the Council and other partners to determine the level of fraud risk they encountered to establish how the Corporate Fraud Team could assist in reducing risk and investigating allegations of fraud.

In addition the Council had been the lead authority representing Cambridgeshire in securing funding from the Department for Communities and Local Government to establish a countywide initiative called the Cambridgeshire Anti-Fraud Network (CAFN).  The principle aim of CAFN had been the creation of a central data-sharing hub across Cambridgeshire to assist in the detection and investigation of tenancy fraud and other fraud identified/reported across the County.  Although CAFN was still in its infancy, it was noted that as a result of Cambridgeshire authorities working together over £1 million of fraud had been identified across the County.

With different types of fraud being investigated, required the Fraud Prosecution Policy to be amended to include reference to the legislation used in prosecuting these new areas.  The Panel endorsed the recommendations to the Cabinet on the Fraud Prosecution Policy that established the legislation and process that Investigating Officers must adhere to when considering the action to take following fraud investigation. 

The Panel had previously agreed that the subject of a new Fraud Working Group would not be considered until the Work Programme of the Corporate Fraud Team had been agreed.  The Corporate Fraud Team’s remit focused on Council services most at risk from fraud and loss and as the Team had been in its new format since May 2015, it was still establishing priorities for the future. The work of the Corporate Fraud Team was reported to the Corporate Governance Panel on an annual basis.  In addition, monitoring the delivery of the Workplan was to be overseen by the Executive Councillor for Customer Service.  The Panel concurred that this was sufficient and that the formation of the Fraud Working Group would not add further value at this time.

The Panel considered whether it wished to receive reports on a more frequent basis.  However, as the Annual Report on the Corporate Fraud Team was scheduled to be presented to the Panel in June 2016, the Panel were satisfied  ...  view the full minutes text for item 36