Waverley Borough Council

AUDIT COMMITTEE

20th July 2020

Title:
FRAUD INVESTIGATION SUMMARIES

Lead Councillor:	Councillor Peter Marriott, Chairman of Audit Committee

Strategic Director:	Graeme Clark

Key decision:	Yes

Access:	Public

1. Purpose and summary
The report provides an update to the Committee on the work being completed in investigating fraud, primarily focusing on Housing Tenancy fraud. The report also includes the current outputs in relation to the National Fraud Initiative (NFI)

2. Recommendation
It is recommended that the Audit Committee notes the results of the fraud investigation activity, attached in:- Annexe 1 for the full year (01 April 2019 to 31 March 2020). Annexe 2 for the 1st quarter (01 April 2020 to 30 June 2020).

3. Reason for the recommendation
To enable the Audit Committee to be informed of the work that has been completed to date in relation to fraud matters.

4. Background
4.1 This report provides the Audit Committee with an update on the progress being made on fraud investigations. As part of this work we continue to share ideas and information with other Surrey councils and other social housing providers as part of the Surrey Counter Fraud Partnership. The success of the work completed has been supported by the introduction of the Prevention of Social Housing Fraud Act 2013 where the maximum penalty for the offence of acting dishonestly in the subletting/parting with possession of a property is up to 2 years’ imprisonment or a fine (or both).
4.2 In the period 1st April 2019 to 31st March 2020, include 6 properties either being relinquished (2 cases) or recovered through the court system, (4 cases), and these have been made available to be re-let to applicants on our waiting list. In the period 1st April 2020 to 30th June 2020, include 4 properties where the tenancies have been recovered including 1 where the right to buy was stopped and the tenancy was also relinquished.

5. Relationship to the Corporate Strategy and Service Plan
5.1 A financially sound Waverley, with infrastructure and services fit for the future

6. Implications of decision
6.1 Resource (Finance, procurement, staffing, IT) The notional value of financial savings detailed in Annexe 1 up to 31 March 2020 is £879,976. Of which £258,530 relates to National Fraud Initiative, £55,992 for a DFG Grant and the majority of the balance of £565,454 based on Cabinet Office figures relates directly to housing fraud. Annexe 2 for the 1st quarter of 2020-2021 Relates to the recovery of 4 properties to the value of £444,000. However, these indicative values do not include the real value to Waverley Borough Council, as it costs on average £200,000 to build a new house. Outcomes from this work not only highlight the fundamental financial value of continuing to support the work being carried out but the ethical and social responsibility importance to ensure that only those that qualify for social housing are successful. By securing the return of 10 properties back into housing stock helps Waverley to meet the needs of legitimate housing applicants.
6.2 Risk management If the authority did not carry out this investigation work it would enable fraudsters to perpetrate fraud against the council and obtain services or financial benefit including housing that they are not entitled to. Protection of council assets.
6.3 Legal It is the Council’s duty to safeguard public funds; the work being completed may incur legal costs where matters escalate to prosecution. However, these costs are far outweighed by the Council’s stance that fraud perpetrated against the council and its taxpayers will not be tolerated, and the benefit in pursuing these cases. There are tangible and intangible benefits to the recovery of HRA properties by stopping fraudsters receiving services that they are not entitled to. The Prevention of Social Housing Fraud Act 2013 contains two offences regarding the sub-letting or parting with possession of properties held under secure tenancies. The first is committed where the tenant no longer occupies the property as their only or principal home and sublets or parts possession of all or part of it in the knowledge that this is in breach of tenancy. A person convicted of this offence is liable on summary conviction to a fine of up to £5,000. A more serious offence is committed if the tenant acts dishonestly in the subletting/parting with possession. A person convicted of this offence is liable to imprisonment for a term not exceeding 2 years or a fine (or both).
6.4 Equality, diversity and inclusion There are no direct equality, diversity or inclusion implications in this report. Equality impact assessments are carried out when necessary across the council to ensure service delivery meets the requirements of the Public Sector Equality Duty under the Equality Act 2010.
6.5 Climate emergency declaration There are no direct implications in this report.

7. Consultation and engagement
7.1 Head of Housing and the Fraud Investigation Officer

8. Other options considered
8.1 N/A

9. Governance journey
9.1 The minutes of the Audit Committee will be presented to Council.

Annexes:

Annexe 1 – Analysis of the caseload and outputs from the Fraud Investigation activity for the period 01/04/2019 to 31/03/2020.

Annexe 2 – Analysis of the caseload and outputs from the Fraud Investigation activity for the period 01/04/2020 to 30/06/2020.

Background Papers

There are no background papers, as defined by Section 100D (5) of the Local Government Act 1972).

CONTACT OFFICER:

Name:	Gail Beaton

Position:	Internal Audit Manager

Telephone:	01483 523260

Email:	gail.beaton@waverley.gov.uk

Agreed and signed off by:

Legal Services: 01/07/2020

Head of Finance: 30/06/2020

Strategic Director: 01/07/2020