Decision details

Ian Rushworth, Audit Manager, presented a report on CIPFA Code of Practice – Managing Risk of Fraud and Corruption.

The County Council had a responsibility to ensure it had effective counter fraud arrangements in place and CIPFA had recently issued a voluntary code of practice entitled 'Managing the Risk of Fraud and Corruption' to support organisations in delivering this.

The code consisted of the following five key principles of counter fraud good practice:

·  Acknowledge the responsibility of the governing body for countering fraud and corruption;

·  Identify the fraud and corruption risks;

·  Develop an appropriate counter fraud and corruption strategy

·  Provide resources to implement the strategy; and

·  Take action in response to fraud and corruption.

The code built on existing CIPFA guidance, 'Managing the Risk of Fraud', and other counter fraud best practice advice such as the 'Protecting the Public Purse' reports issued by the Audit Commission.

For each of the five principles the new code included details of the specific elements that organisations should have in place. The Council's current arrangements had been assessed against each of these elements. LCC already had adequate and effective counter fraud arrangements in place and as such was compliant with the vast majority of the code. Three areas for recommendation had been identified which could be strengthened by these arrangements:

1.  The code recommended that a statement was included in the annual governance report stating that the organisation had adopted a response appropriate to the fraud and corruption risks it faced. LCC's annual governance report for 2013/14 referred to the council's whistleblowing and counter fraud arrangements, however, consideration would be given to expanding this and include a reference to the CIPFA Code of Practice in future annual governance reports.

2.  LCC had an anti-fraud policy and strategy which was developed several years ago. Whilst these documents were relevant they needed to be refreshed to reflect current arrangements. These would be reviewed by the end of March 2015.

3.  To increase Fraud awareness across the County Council it was proposed that staff in key roles completed a fraud awareness e-Learning course. A course had been developed by the National Fraud Authority and Deloitte and made available free of charge to local authorities. It was intended that this would be rolled out in April 2015 and made mandatory to the following groups of staff.

·  Budget holders;

·  Staff within County Treasurers Directorate; and

·  Staff within procurement, legal services, Your Pensions Service and payroll.

Resolved: The Committee note the report and approve that:

1.  A statement is included in the annual governance statement that LCC had adopted a response appropriate to the fraud and corruption risks it faces and a reference is made to the CIPFA Code of Practice;

2.  LCC review its anti-fraud policy and strategy by the end of March 2015;

3.  LCC staff in key roles complete a fraud awareness e-learning course.