Fighting Fraud Locally

Transcription

1 Fighting Fraud Locally The Local Government Fraud Strategy Rachael Tiffen Head of Public Sector Fraud National Fraud Authority

2 The Damage Caused by Fraud The NFA Annual Fraud Indicator 2011 Knowing the extent and reach of the problem is crucial in fight against fraud The Annual Fraud Indicator is our blueprint. It enables us to gain a perspective and judge the scale of the problem and target our actions accordingly Fraud costs the UK 38.4 billion a year On average 760 per adult Public Sector fraud is 55% of the total at 21.2 billion Mainly tax and benefit fraud but also fraud in procurement, council tax and housing tenancy Local Government Fraud is estimated at 2.1bn AFI National Fraud Authority Annual Fraud Indicator 2011

3 A cross-government approach Central Government Response: Fraud, Error and Debt Taskforce Announced October 2010 Chaired by Francis Maude MP. Membership from Govt departments and private sector Zero tolerance approach to fraud across public services building on NFA report and action plan Pilots in key risk areas to demonstrate how fraud can be tackled across public services Report published February

4 Local Government response: Building on NFA work Pre FFL :NFA existing programme of work and projects on Housing tenancy fraud Council Tax Regional Partnerships Verification Insider Procurement Grants Working with the LGA on framework contract on CRA data NFA Pathfinders and pilots in above area Scoping emerging risks Better knowledge and focus CIPFA checklists Local Government Counter Fraud event 2011 Strand of Fighting Fraud Together 4

5 The AFI Tackling the main risks 152 million 43 million 8 million 46 million 90 million Housing tenancy fraud Procurement fraud Payroll & recruitment fraud 855 million 900 million Council tax fraud Blue Badge Scheme abuse Grant fraud Pension fraud

6 Tackling the main fraud risks Housing tenancy fraud 900m lost p.a. 50,000 homes occupied fraudulently 18,000 p.a. to house a family NFA/LA pathfinders using credit reference agency checks to verify circumstances Potential for cashable savings for local authorities NFA project: checklists, workshops, pathfinders, Guide and engagement stream

7 Tackling the main fraud risks Council tax discount fraud 90m lost to fraud per annum One third of tax payers claim Single Person Discount Pilots in 3 LAs found 4-6% of discounts claimed are fraudulent Now looking at other exemptions such as for students And the other risks...

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9 What does APP mean in practice and the associated tools? Acknowledge What does it mean in practice: Needs to be cultural change An increase in fraud awareness Reporting Prevent What does it mean: Prevention on application and verification of circumstances Sharing knowledge of known fraud Better use of data and technology to prevent and detect fraud Pursue What does it mean: Local Authorities must have the capacity and capability to investigate and prosecute fraud Need a consistent and more effective response for dealing with fraud cases Each strand of APP links to tools or guidance... 9

10 The Tools so far Good Practice Bank Live on CIPFA website To be populated by March 2012 The NFA checklist Templates A Wheel of Fraud risk tool Free E-Learning tool Free resilience checks The Compendium of Powers and Penalties Links to good practice documents Results of pathfinders and pilots The CIPFA/NFA online technical forum Councils can discuss technical issues and we will monitor and respond where appropriate

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13 Access Go to the TIS homepage at Access to the Fraud Discussion Forum is via To access the Good Practice Bank, click on the link below and enter your CIPFA address and password: nline.net/riskmanagement/default.asp?section=fraud The Powers and Penalties document, Wheel of Fraud and other links are in sources of information. The FFL Strategy will replace this front page when published. This page is in development and NFA will be populating this page until March 2012, please forward any useful templates or documents to

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15 Promoting Fighting Fraud Locally We are working with LGA, SOLACE to promote We are also working with firms and CIPFA The NFA will conduct a number of regional workshops with Audit Commission and MBUS to explain and promote the strategy throughout March. Work with other enforcement agencies

16 Fighting Fraud Locally First sector-led strategy developed under Fighting Fraud Together Content arises from practitioners and experts in the sector Needs to be owned and implemented by local government Emphasises the three limbs of Acknowledge, Prevent and Pursue NFA will provide tools to help local authorities address fraud risks NFA strands of work continue : MBUS and the Audit Commission Further tools/ guidance on Business Rates, Grants, Personal Budgets, Housing tool, Housing Forum and the Fraud and Corruption Manual

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