Agenda item

Zac O’Neil, Head of Counter Fraud, introduced the 2020/21 quarter 4 counter fraud progress report. Officers highlighted that operations were impacted in quarter 4, more so than quarter 3, due to the tightening of Covid-19 restrictions in the first few months of 2021; however, the challenging conditions were not as consequential as they had previous been during the first national lockdown. Members were informed that Counter Fraud operations had delivered £262k in loss prevention savings throughout the 4^th quarter meaning the 2020/21 target of £1m has been met.

Within Housing, it was noted that 11 Council housing properties had been recovered in quarter 4, this brought the total number of properties recovered throughout 2020/21 to 22. This was seen as a success considering the restrictions in place as a result of the pandemic with regard to the recovery of property through the courts; these restrictions had led to more flexible approaches in negotiating the recovery of properties. The successes of the Business Assurance Counter Fraud Team (BACFT) against the backdrop of Covid-19 were further highlighted when number of properties recovered were compared to the that of 2019/20, in which a total of 28 properties had been recovered. It was noted that within Exchequer Services, the total loss preventions savings and income were £26k for quarter 4, bringing the total for 2020/21 to £138k; this was attributed to a focus on ‘Beds in Sheds’ project work bringing unregistered dwellings into Council Tax generating dwellings. Within Social Care, no additional savings were made in quarter 4, meaning the total identified loss prevention savings for 2020/21 remained at £130k; however, it was noted that a significant number of investigations were ongoing with further referrals being received from that area of the Council. This was expected to lead to a good performance in quart 1 of 2021/22.

The Committee were also informed that throughout quarter 4, the Counter Fraud team had met with Directors and Heads of Service with a focus on fraud risk planning, particularly in relation to procurement to explore new areas for proactive projects going forward.

Members were informed that the hours of service received from the Home Office Immigration Enforcement Officer, embedded within the Counter Fraud Team, had been reduced in line with the reduction in referrals received; this was seen as a symptom of the Covid-19 pandemic and the hours could be increased should the situation change going forward. It was also highlighted that just over 6000 Revenues Inspections were carried out in 2020/21 and quarter 4 had shown a marked improvement in performance compared to quarters 1 to 3.

Alex Brown, Interim Head of Counter Fraud, summarised the report’s Forward Look for the Committee. It was noted that the impact felt by Covid-19 restrictions would begin to have less of an impact as the lifting of restrictions was expected in line with the Government’s roadmap out of lockdown. Visiting and interviewing functions would be continuing where appropriate and the BACFT would continue to support Exchequer Services in the administration of Business Grants Schemes; it was noted that this work was likely to continue throughout quarter 1 and possibly beyond. It was highlighted that a financial target in loss prevention and financial savings across Council services had been set at £1.5m for 2021/22, the BACFT were confident that this could be achieved.

Furthermore, Members noted that there was to be a change in leadership within the BACFT following the Head of Counter Fraud’s forthcoming departure. An Interim Head of Counter Fraud had been internally appointed and a decision on a permanent Head of Counter Fraud was expected in quarter 2 of 2021/22.

The Committee sought clarifications on the flexible working practices adopted in negotiating the recovery of Council housing properties during the pandemic. Officers elaborated to say that the team had been discussing the merits of returning tenancies with tenants in a more protracted manner; it was noted that lessons had been learnt for the future and where costs involved with court action could be avoided, officers would be exploring alternative means negotiation. Though it was also noted that there were occasions where court action would be deemed necessary. Officers also gave the Committee assurance that records were flagged with regard to individuals whereby the Council had stopped short of legal action but would be alerted to in future when liaising with them.

Members were encouraged by the performance of the Counter Fraud Team over what had been a challenging year and thanked officers for their hard work. The Committee wished the previous Head of Counter Fraud well in his new role and congratulated the Interim Head of Counter Fraud on his new position.

RESOLVED that the counter fraud progress report for 2020/21 quarter 4 be noted.