Report of: The Interim Group Finance Director (Section 151 Officer)

Purpose of the report: To update the Audit and Governance Committee on the activity and performance of the Counter Fraud Team for the fiscal year 1 April 2025 to 31 March 2026.

Recommendation(s): That the Committee resolves to:

1.    Note the contents of the report.

The Group Finance Director had submitted a report to update the Audit and Governance Committee on the activity and performance of the Counter Fraud Team for the fiscal year 1 April 2025 to 31 March 2026. 

Scott Warner, the Counter Fraud Manager was present to respond to questions. 

The Chair reminded the Committee that the appendix to this report was confidential; should Members wish to discuss its content, they would be required to enter confidential session.  

Councillor Harley joined the meeting. 

The Counter Fraud Manager provided a summary of the report, noting that it outlines the performance of the Counter Fraud team for the 2025-2026 financial year. The Committee was reminded that four of the five key performance targets set out in table 1 had been achieved or exceeded. In reference to the target for the number of housing applications, the Counter Fraud Manager explained that this was not achieved as outcomes from a data matching exercise were not applied to the system in time for the individual statistics. Further detail was provided on each target within table 2. The Counter Fraud Manager positively emphasised the success of the 10th annual fraud conference in November 2025 and highlighted that the team had been highly commended via an award for excellence in protecting the public purse. The Committee heard that a combined financial value of nearly £2.9 million had been delivered in the last year, amounting to a gross return on investment of more than 400% based on the cost of running the counter fraud team. 

The Chair invited questions from the Committee. 

Councillor Fry praised the work of the Counter Fraud team and asked whether consistent achievement of targets could suggest that future aims should be more ambitious; a summary of targets and performance over recent years was requested. Additionally, Councillor Fry requested an indication of the trading income from commercial activity, such as the annual conference, and queried why it would not be going ahead this year. 

The Counter Fraud Manager explained that targets are set to extend the delivery of the team, and these are evaluated annually to embrace new methods. In relation to trading income, the Committee heard that the team does provide external services on a commercial basis to around 35 organisations, mainly other local authorities and social housing providers, and this generates the team’s main income. Finally, in relation to the annual conference, the Counter Fraud Manager explained that a break would be taken this year to ensure that usual services are maintained and to refresh the conference offering for 2027. 

The Chair, in reference to table 2 of the report, queried who is now responsible for investigating housing benefit fraud, to which the Counter Fraud Manager explained that the responsibility passed over to the Department for Work and Pensions in around 2015. 

The Chair thanked the Counter Fraud Manager. 

The Committee reviewed and noted the report. 

The Counter Fraud Manager left the meeting and did not return. 

The Chair reordered the agenda: item 14 moved up to item 11.