Issue - meetings

The Head of Corporate Governance reported on the work carried out by the Audit and Counter Fraud Team in the period to 31^st December 2020.

The Team had continued to prioritise work on the Fundamental Financial Systems (FFS) reviews related to 2020/21 transactions and work to support the 2020/21 audit of the financial accounts. The FFS audits were well underway, the initial stage being near to completion in reviewing 14 systems with throughput value of over £10m.  Due to the pandemic, Internal Audit continued to provide significant non-audit related administration support to Revenues and Benefits services in the processing of Business Grants and in providing advice to support the Council in considering its response to managing Supplier Relief.

Other Audit and Counter Fraud Team work in this period included

·         contributions to reviewing and controls around processing Winter Grants, and continued support around Business Grants and Discretionary Business Grants;

·         carrying out investigations around potential fraud and error on Business Grants;

·         Advisory work to colleagues, including those managing the People Programme and the implementation of the ICT solution to reflect the potential issues with the system;

·         Business Grant Assurance review around the Small Business Grant Fund (SBGF), the Retail, Hospitality and Leisure Grant Fund (RHLGF) and Discretionary Grant Fund (DFG) administered by the Council;

·         the Counter Fraud and Direct Payments Audit Teams (Adults and Children) continuing to deliver outcomes which have generated £198,645 and £1,421,626 (respectively) during the first 9 months of the year to 31 December 2020; and

·         the Team continuing to collaborate with colleagues to procure and implement a cost effective solution to the Audit Management System, to ensure an appropriate mix of external and internal resources to achieve value for money.

With reference to Appendix 1 and the summary of reports concluded in the period to 31^st December 2020, a Member queried ‘Green’ ratings allocated in certain areas which, it was suggested, gave a wrong impression.  The Committee was advised that the ratings recorded related only to the particular scope of the investigation. 

A Member noted that pandemic-related Business Grants were ongoing and queried what checks the Council was making as to eligibility.  It was acknowledged that managing and monitoring the various grants process was complicated, with a number of schemes running.  However, Licensing and other Teams provided feedback to the Team, in addition to the Team’s own processes.  There had also been some whistleblowing from the public.  The Committee was advised that wrongful receipt of grants was fraud and that correspondence to recipients did note this fact.  It was considered that the Council and its investigatory team was doing its best to minimise fraud.

RESOLVED that the report be noted.