Detecting, investigation & recovery

6.1 This section should be read with our Fraud Response Plan, see Appendix 2 (Word 40k) and also our Prosecution Policy, Appendix 4 (Word 55k).

6.2 The council has robust processes designed to reduce the risk of fraud and corruption these include regular management review of systems and procedures to ensure compliance with financial control, a risk based Internal Audit review cycle, Risk Management review process and governance guides including Hospitality procedures and declarations of interests.

6.3 Where appropriate and in accordance with the fraud response plan the Internal Audit Service will undertake formal investigations into fraud and corruption. The process utilised in undertaking and investigation is covered by established professional practice as prescribe by CIPFA and in compliance with the Councils Fraud Response Plan and legislative guidance.

6.4 All cases referred either by the Whistle blowing telephone line or via an internal referral are formally risk assessed by the Head of Audit Services and approval sought from the Head of Risk Management. Each case is then recorded for tracking on a database maintained by Internal Audit. It is important that transparency is maintained in all decision making and consequently there is a process verification and review of the basis elements of the enquiry throughout the audit/investigation process.

6.5 It is important to note that the auditor receiving the complaint will not be the sole investigator of the enquiry, therefore ensuring the utmost independence is maintained during the currency of an investigation.

6.6 Data Matching

6.6.1 As a proactive commitment to the prevention and detection of fraud the Authority has actively participated in the National Fraud Initiative, which is a data matching exercise carried out by the Audit Commission under their powers within the Audit Commission Act 1998. This data match looks at a wide variety of data sources and compares them to each other to identity potential fraud and irregularity. The potential fraud and irregularity areas include:

• Benefits
• Payroll and Pensions
• Creditors
• Street Traders
• Insurance
• Private and Voluntary Adult Homes
• Child Minders
• Blue badge misuse

6.6.2 In addition data matching is also carried out with the Benefit Agency (Department for Works and Pensions) and the HM Revenue and Customs    under their own statutory powers.

6.6.3 Data matching is conducted within the requirements of the current Data Protection legislation, and the new Audit Commission protocols effective from 2006 and staff side consultation.

6.7 Housing or Council Tax Benefit Fraud

6.7.1 This Service is managed by the Central Benefits Section within the Housing Directorate.  

6.7.2 The framework for benefits related investigations and sanctions is contained within Appendix 4 (Word 55k)

6.7.3 Concerns regarding possible Housing or Council Tax Benefit Fraud, these can be reported using the Benefit Fraud Hotline on (0207 364 7443 – 24 hour answer phone service) or you can speak to a Benefit Investigator direct on 0207 364 7425 or 7426 or 7442

6.7.4 Other possible fraudulent activity include the following, see Appendix 5 for more details (Word 37k):

• Tenancy Fraud
• Grants
• Insurance Claims
• Parking Permits including Blue Badge Scheme
• Identity theft fraud
• Protect yourself
• Advance fee fraud