Protecting the Public PurseFraud Briefing 2013 Hertfordshire County Council
Agenda
• Introduction and purpose of your Fraud Briefing
• Protecting the Public Purse (PPP) 2013 report – national picture
• Interpreting fraud detection results
• The local picture
• Questions?
And do not forget–Checklist for those charged with governance (Appendix 2 of PPP 2013)–Questions councillors may want to ask/consider (Appendix 3 of PPP 2013)
Introduction
• Fraud costs local government in England over £2 billion per year (source: National Fraud Authority)
• Fraud is never a victimless crime
• Councillors have an important role in the fight against fraud
Purpose of Fraud Briefing at your council
• Opportunity for councillors to consider fraud detection performance, compared to similar local authorities;
• Reviews current counter fraud strategy and priorities;
• Discuss local and national fraud risks;
• Reflect local priorities in a proportionate response to those risks
National Picture 2012/13 Total cases detected107,000, with a value of £178 million (excluding social housing fraud)
Nationally, the number of detected frauds has fallen by 14% since 2011/12 and the value by less than 1%
Other£38.5 million
Council tax discount£19.5 million
Housing benefit and Council tax benefit£120 million
Interpreting fraud detection results
• Contextual and comparative information needed to interpret results
• Detected fraud is indicative, not definitive, of counter fraud performance (Prevention and deterrence should not be overlooked)
• No fraud detected does not mean no fraud committed (Fraud will always be attempted and even with the best prevention measures some will succeed)
• Councils who look for fraud, and look in the right way, will find fraud (There is no such thing as a small fraud, just a fraud that has been detected early)
Your council is highlighted in yellow in the graphs that follow
The local pictureHow your council compares to other County CouncilsTotal detected cases and value 2012/13
Hertfordshire detected: 1 case, valued at £279,202
County Council average: 11 cases, valued at £162,763
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10
20
30
40
50
60
70
80
90
£-
£200,000
£400,000
£600,000
£800,000
£1,000,000
£1,200,000
£1,400,000
£1,600,000
£1,800,000
Detected cases Detected value
County Councils 2012/13Social care fraudDetected cases and detected value
Hertfordshire detected: no casesCounty Council average: 3 cases, valued at £77,003
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5
10
15
20
25
30
35
40
£-
£200,000
£400,000
£600,000
£800,000
£1,000,000
£1,200,000
£1,400,000
£1,600,000
£1,800,000
Detected cases Detected value
County Councils 2012/13Schools fraudDetected cases and detected value
Hertfordshire detected: no casesCounty Council average: 1 case, valued at £27,032
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1
2
3
4
5
6
7
8
9
10
£-
£50,000
£100,000
£150,000
£200,000
£250,000
£300,000
£350,000
Detected cases Detected value
District Councils in your County Council area 2012/13 Council tax (CTAX) discount fraudDetected value and detected value as a percentage of council tax income
Total detected in your county area : 190 cases, valued at £79,632
Average in your county area : 19 cases, valued at £7,963
£-
£10,000
£20,000
£30,000
£40,000
£50,000
£60,000
£70,000
£80,000
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0.020
0.040
0.060
0.080
0.100
0.120
0.140
Detected value Detected value as % CTAX income
Disabled parking (Blue Badge) fraud 2012/13Detected cases by council type and County Councils
Hertfordshire detected: no cases
County Council average: 2 cases
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5
10
15
20
25
30
35
40
Detected cases
0
5
10
15
20
25
30
35
40
45
London Boroughs Metropolitan Districts Unitary Authories County Councils
Average cases by council type
County Councils 2102/13Procurement fraudDetected cases and detected value
Hertfordshire detected: 1 case, valued at £279,202County Council average: 1 case, valued at £16,499
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2
4
6
8
10
12
£-
£50,000
£100,000
£150,000
£200,000
£250,000
£300,000
Detected cases Detected value
County Councils 2012/13Insurance fraudDetected cases and detected value
Hertfordshire detected: no cases
County Council Total: 5 cases, valued at £351,800
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1
2
3
4
£-
£50,000
£100,000
£150,000
£200,000
£250,000
£300,000
£350,000
£400,000
Detected cases Detected value
County Councils 2012/13Economic and third sector support fraudDetected cases and detected value
Hertfordshire detected: no casesCounty Council total: 13 cases, valued at £38,400
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1
2
3
4
5
6
7
8
9
10
£-
£5,000
£10,000
£15,000
£20,000
£25,000
Detected cases Detected value
County Councils 2012/13Internal fraudDetected cases and detected value
Hertfordshire detected: no casesCounty Council average: 5 cases, valued at £63,811
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5
10
15
20
25
30
£-
£100,000
£200,000
£300,000
£400,000
£500,000
£600,000
£700,000
£800,000
Detected cases Detected value