Contact: Kevin Gardner, tel. 01962 847381, email [email protected]

1 Summary

At its last meeting, the Committee discussed the need to ensure that there are procedures in place within the Authority for whistle blowing and combating fraud. The Committee asked the Clerk to investigate the position on this matter and report back. This paper summarises the arrangements in place.

2 Anti Theft, Fraud and Corruption Policy

An Anti Theft, Fraud and Corruption Policy has been in place as a Service Order since 2006 and is supported by the following policies and procedures:

2.1 gifts and hospitality procedures,

2.2 procedures for handling of break-ins or burglary at Hampshire Fire and Rescue Service premises

2.3 reporting concerns at work (whistleblowing)

2.4 discipline procedures

2.5 financial and procurement guidelines

2.6 financial management (income)

2.7 Financial Regulations

2.8 Scheme of delegation for officers

2.9 Standing Orders on contracts

3 Staff Code of Conduct

3.1 There is a code of conduct for staff which sets out the standards expected of Hampshire Fire and Rescue employees. Where appropriate, breaches of this code will result in disciplinary action. Further, compliance with Service orders is incorporated in staff contracts.

4 Communication to Staff

4.1 The existence of the above policies, procedures and requirements is communicated periodically through Routine Notice, which is the weekly bulletin for all staff.

5 Internal Audit

5.1 Audit Services at Hampshire County Council provide an Internal Audit function to the Service under a service level agreement. This service is professionally led by managers who are appropriately qualified and trained. There is an Internal Audit strategy in place which meets the requirements of the CIPFA Code of Practice for Internal Audit in Local Government, and has been approved by the Governance Committee. There is close liaison between Audit Services and managers within the Service. Auditors maintain a presence at the headquarters site on a regular basis, to provide opportunity to ask for help and advice on an ad-hoc basis.

5.2 Within the audit function there is a team dedicated to special investigations, which has received appropriate training, and has access to adequate resources. This team records details of all thefts and reported allegations of fraud or irregularity, and are responsible for risk assessing each case and agreeing the course of action with the manager.

5.3 Where investigations are carried out, it is normal practice to produce two reports, the first addressing the allegations themselves, the second addressing the control issues and therefore providing proactive advice on preventing recurrence of the incident. Where it is considered likely that similar incidents could occur in other parts of the organisation, the findings and guidance on best practice are also shared with other relevant parties.

5.4 A risk based approach is taken to audit planning. Each year an audit needs assessment is reviewed, and issues and changes facing the Service are considered. Opportunity is taken during planning meetings with managers to identify any areas that are particularly vulnerable to fraud. The result is a risk-based plan that covers all key systems, risks and major transactions and testing within each review is planned to assess compliance with key controls, including those designed to reduce the risk of / improve the likelihood of detecting, fraud or other malpractice that could lead to legal breaches etc.

5.5 The special investigations team carry out planned fraud detection work, including the investigation of data matches arising from the Audit Commission's National Fraud Initiative (NFI) data matching exercise, which takes place every other year.

5.6 To date, the NFI exercise has not identified significant levels of fraud in the Service, and the outcomes have contributed to the overall positive assurances that have been provided to the Authority.

5.7 Other reviews are included in the plan on a risk assessed basis, drawing on knowledge of investigations carried out, feedback from key contacts during the planning process and knowledge of issues arising in other local authorities.

5.8 There is a system in place within the Service to follow up all audit recommendations made in audit reports to ensure that they have been implemented as agreed. Progress against implementation of recommendations is reported to the Governance Committee regularly.

6 Conclusion

6.1 It will be evident from the above that the Authority has comprehensive arrangements in place to minimise risk of fraud, to communicate these arrangements to staff, and to monitor compliance through the internal audit function.

7 Recommendation

That the report is noted.

Background Papers:
None