Issue - meetings

This report details counter fraud work carried out by Internal Audit during 2024/25 to provide assurance on the Council’s response to combating fraud and corruption. 

Internal Audit have investigated all allegations of suspected fraud or financial irregularity in a proportionate manner. 

Two formal whistleblowing referrals were received and investigated during 2024/25.

The BCP Anti-Fraud & Corruption Policy has been revised to incorporate the new corporate offence introduced by the Economic Crime & Corporate Transparency Act 2023. Under this legislation, organisations may face prosecution if a fraud is committed by an employee, agent, or subsidiary with the intent to benefit the organisation, and the organisation has failed to implement reasonable fraud prevention.

NOTE: In relation to this item of business, the Committee is asked to consider the following resolution in relation to any discussion on the exempt appendix A to the report:

“That under Section 100(A)(4) of the Local Government Act 1972, the public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraphs 1, 2 and 7 in Part I of Schedule 12A of the Act and that the public interest in withholding the information outweighs such interest in disclosing the information.”

The Audit Manager (Deputy Chief Internal Auditor) presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'H' to these Minutes in the Minute Book. The report detailed the counter fraud work carried out by Internal Audit during 2024/25 to provide assurance on the Council’s response to combating fraud and corruption. 

The Audit Manager drew attention to some of the work undertaken, including an annual review/update of policies, monitoring completion of staff fraud awareness training (87% by August 2025), and the matching of payroll data to identify undeclared dual employment as part of prevention and detection work. All high risk audit reviews had been completed. All allegations of suspected fraud or financial irregularity had been investigated in a proportionate manner. Two formal whistleblowing referrals had been investigated and resolved during 2024/25. Further details were provided in an exempt appendix to the report. Corporate counter fraud work had included assisting with Right to Buy application checks. It was noted that the CIPFA-based annual assessment of the Council’s arrangements on managing the risk of fraud and corruption had scored 94%.

The BCP Anti-Fraud & Corruption Policy had been revised to incorporate the new corporate offence introduced by recent legislation, meaning that organisations may face prosecution if a fraud is committed by an employee, agent, or subsidiary with the intent to benefit the organisation, and the organisation has failed to implement reasonable fraud prevention. Training for senior management was being provided.

Officers provided the following information in response to questions on the report:

• It was confirmed that failure to notify the Council that a blue badge holder had passed away could be classed as potential fraud. Data matching was helping to identify cases at an earlier stage.
• In terms of how the increase in fraud cases had affected the capacity of team, it was explained that most cases related to council tax discount referrals which already had resources allocated and which had now transferred to the revenue compliance team.
• The Audit Manager agreed to provide further information in relation to 6% of the CIPFA assessment score not achieved and to consider whether a form of external verification was possible for future years
• Members were assured that councillor training completion rates were taken seriously, although it was noted that there were limits on enforcement. Councillor training was reported to the Standards Committee. It was acknowledged that there could be genuine reasons for not being able to complete training. Support would be provided as required to remove barriers to participation.
• There was a specific team in revenue and benefits which focussed on the collection of business rates. The team was proactive in this work and achieved good recovery rates compared to other councils.

RESOLVED that:

a)    the counter fraud work & investigations carried out by Internal Audit during 2024/25 be noted; 

b)     the whistleblowing referrals received during 2024/25 be noted.

Voting: Agreed with no dissent