Issue - meetings

This report details the counter fraud work undertaken during the first two quarters of the financial year to 30^th September 2012, by the Council’s Corporate Anti Fraud Service (CAFS).

Geoff Drake, Chief Internal Auditor, introduced the report, which set out the performance of the Corporate Anti-Fraud Service in the first six months of the financial year. He said that CAFS had delivered 72 sanctions (including 7 prosecutions) in the first half of the year including 35 properties recovered or prevented from fraudulently being allocated. He added that section 11 of the report gave details of monies collected. He said that, going forward, the Committee would be able to use the information presented to assess what was recovered.

The Chairman asked whether the recovery rate was considered sufficient. Mr. Drake said that the rate appeared to be about 50%, but that the debt raised, on benefit overpayments, for instance, was often difficult to recover and took a long time to recover. Jane West, Executive Director of Finance and Corporate Governance, said that the figure was higher than she had feared, and positive in light of the upcoming localisation of Council Tax benefit.

Councillor Iggulden said that while it was understandable that the work of CAFS should be promoted, the value put on recovered properties by the Audit Commission seemed excessive. Mr Drake said the methodology was imperfect but the valuations were an accepted rate across local govt set by the Audit commission that helps for comparison purposes between councils.  While in many cases there is no direct budget obvious impact there have been occasions where recovered properties have been sold.

Councillor Murphy asked if the Council had been awarded costs or compensation in the Smith case. Mr Drake said that he did not believe there had been assets to claim against, and that the courts did not always award as might be expected; he would confirm the position in that case in writing.

RESOLVED THAT

The report be noted.

This report details the counter fraud work undertaken during the first two quarters of the financial year to 30^th September 2012, by the Council’s Corporate Anti Fraud Service (CAFS).