An update will be given on the progress against outstanding actions identified by the Committee.

There was submitted a report by the Council’s Corporate Director (Corporate Services) (A.6) which presented to Members the progress against outstanding actions identified by the Committee.

It was reported that the Table of Outstanding Issues had been reviewed and updated since it was last considered by the Committee at its meeting held on 25 January 2018.

It was further reported that there were no significant issues to bring to the attention of the Committee, with updates provided against individual items, as set out in Appendix A to item A.6 of the Report of the Corporate Director (Corporate Services), or elsewhere on the agenda where appropriate.

Updates against actions identified within the latest Annual Governance Statement were set out in Appendix B with no significant issues to highlight at the present time.

Members were informed that in developing a Counter Fraud and Corruption Strategy, a voluntary code of practise that had been published by CIPFA had been identified which was presented to the Committee to consider for adoption by the Council. That code of practice identified five key principles for an organisation to consider, namely –

Principle 1 – Acknowledge Responsibility

The organisation should acknowledge its responsibility for ensuring that the risks associated with fraud and corruption are managed effectively across all parts of the organisation.

Specific steps should include:

·           The organisation’s leadership team acknowledge the threats of fraud and corruption and the harm they can cause to the organisation, its aims and objectives and to its service users.

·           The organisation’s leadership team acknowledge the importance of a culture that is resilient to the threats of fraud and corruption and aligns to the principles of good governance.

·           The governing body acknowledges its responsibility for ensuring the management of its fraud and corruption risks and will be accountable for the actions it takes through its governance reports.

·           The governing body sets a specific goal of ensuring and maintaining its resilience to fraud and corruption and explores opportunities for financial savings from enhanced fraud detection and prevention.

Principle 2 – Identify Risks

Fraud risk identification is essential to understand specific exposures to risk, changing patterns in fraud and corruption threats and the potential consequences to the organisation and its service users.

Specific steps should include:

·           Fraud risks are routinely considered as part of the organisation’s risk management arrangements.

·           The organisation identifies the risks of corruption and the importance of behaving with integrity in its governance framework.

·           The organisation uses published estimates of fraud loss, and where appropriate its own measurement exercises, to aid its evaluation of fraud risk exposures.

·           The organisation evaluates the harm to its aims and objectives and service users that different fraud risks can cause.

Principle 3 – Develop a Strategy

An organisation needs a counter fraud strategy setting out its approach to managing its risks and defining responsibilities for action.

Specific steps should include:

·           The governing body formally adopts a counter fraud and corruption strategy to address the identified risks and align with the organisation’s acknowledged responsibilities and goals.

·           The strategy includes the organisation’s use of joint working or partnership approaches to managing its risks, where appropriate.

·           The strategy includes both proactive and responsive approaches that are best suited to the organisation’s fraud and corruption risks.

·           The strategy includes clear identification of responsibility and accountability for delivery of the strategy and for providing oversight.

Principle 4 – Provide Resources

The organisation should make arrangements for appropriate resources to support the counter fraud strategy.

Specific steps should include:

·           An annual assessment of whether the level of resource invested to counter fraud and corruption is proportionate for the level of risk.

·           The organisation utilises an appropriate mix of experienced and skilled staff, including access to counter fraud staff with professional accreditation.

·           The organisation grants counter fraud staff unhindered access to its employees, information and other resources as required for investigation purposes.

·           The organisation has protocols in place to facilitate joint working and data and intelligence sharing to support counter fraud activity.

Principle 5 – Take Action

The organisation should put in place the policies and procedures to support the counter fraud and corruption strategy and take action to prevent, detect and investigate fraud.

Specific steps should include:

·           The organisation has put in place a policy framework which supports the implementation of the counter fraud strategy.

·           Plans and operations are aligned to the strategy and contribute to the achievement of the organisation’s overall goal of maintaining resilience to fraud and corruption.

·           Making effective use of national or sectoral initiatives to detect fraud or prevent fraud, such as data matching or intelligence sharing.

·           Providing for independent assurance over fraud risk management, strategy and activities.

·           There is a report to the governing body at least annually on performance against the counter fraud strategy and the effectiveness of the strategy from the lead person(s) designated in the strategy. Conclusions are featured in the annual governance report.

It was RESOLVED that the Committee -

a)     notes the progress on the outstanding issues; and

b)        adopts CIPFA’s code of practice on managing the risk of fraud and corruption.