Deterrence and Prevention
6.1 The effectiveness of the Council's financial arrangements will have a major bearing on its ability to minimise fraud, corruption and bribery. To actively prevent fraud the Council must identify and remove the opportunity to commit crime from new policies and systems and to revise existing ones to remove apparent weaknesses.
6.2 The Council will endeavour to act robustly and decisively when fraud, bribery, or corruption is suspected and proven. This will be demonstrated through disciplinary action or prosecution. The Council will take action to help ensure the maximum recoveries for the Council.
Prevention - Internal Controls
6.3 As the appointed officer under 'Section 151' of the Local Government Act, 1972 and the Accounts and Audit Regulations (various years) responsible for making arrangements for the proper administration of the Council's financial affairs, the Community of Practice (COP) Lead Finance (S. 151 Officer) is required to:
- Maintain an effective accounting system;
- Comply with statutory financial reporting deadlines; and
- Maintain an adequate and effective internal audit.
6.4 The Regulations required that a Deputy S.151 Officer be formally nominated.
6.5 The 2003, 2006 and 2011 Accounts and Audit Regulations require the Council to ensure that they have adequate and effective financial management and a sound System of Internal Control (SIC). It must review the system annually and publish a statement with the accounts (the annual Governance Statement).
6.6 The Council's Financial Procedure Rules (part of the Constitution) also require the S.151 Officer to maintain a planned continuous internal audit to form part of the system of internal control, assist in the protection of the Council's assets and the detection and prevention of fraud and error. In consultation with the internal and external audit managers, special attention within audit plans is paid to those activities particularly exposed to the risk of fraud, corruption and bribery (paragraph 3.0).
6.7 The adequacy and appropriateness of the Council's financial systems is independently reviewed by both internal and external audit. Senior management are required to be responsive to audit recommendations, and any issues.
6.8 The Council's arrangements for preventing fraud will be considered by the Audit Committee on a regular basis. The arrangements will include Internal Audit and the Benefits Fraud Team carrying out pro-active and reactive work.
6.9 The Internal Auditor will take the appropriate steps to communicate to the appropriate managers, on a timely basis, the details of any fraud bulletins (warnings) received from the external auditor and any other source to ensure safeguards are in place.
6.10 The Council will liaise and co-operate with other interested agencies and authorities, including External Audit, Department for Work and Pensions, the Police, professional bodies, and other local authority networks, by, for example, exchanging information on current trends and remedies and membership of the National Anti Fraud Network (NAFN).
Prevention - Staff
6.11 The Council recognises that a key preventative measure in the fight against fraud, corruption and bribery is to take effective steps at the recruitment stage to establish, as far as possible, the previous record of potential staff in terms of their propriety and integrity. Staff recruitment is therefore required to be in accordance with procedures laid down by the Head of Corporate Services, and, to obtain a written reference regarding known honesty and integrity of potential staff before employment offers are made.
6.12 In the case of agency staff, references will have been taken by the agency to establish the honesty and integrity of the employee.
6.13 Council staff are expected to follow any Code of Conduct related to their employment or to their professional bodies or qualifications. This will be emphasised in staff induction procedures.
6.14 Employees who hold professional, trade or other appropriate qualifications are expected to comply with codes of conduct issued by the organisations of which they are members.
6.15 Council staff are required to notify the Council's Monitoring Officer of offers of gifts or hospitality in any way related to their employment.
6.16 Any relevant pecuniary interests which, if publicly known, could be perceived as being likely to interfere with their independent judgement, must also be notified to, and recorded by, the Monitoring Officer.
Prevention - Members
6.17 The Council's constitution contains a statement of the roles, functions, rights and duties of Members of the Council of Councillors. All members are required to comply with the Constitution, which includes a Code of Conduct.
6.18 All members of the Council are required under the Council's Code of Conduct to notify the Council's Monitoring Officer of:
- Any areas of conflict between their Council duties and other areas of their personal or professional lives; and
- Any offers of gifts or hospitality as specified in the code (to a value exceeding £25), which are in any way related to the performance of their duties to the Council.
6.19 The Authority has in place a Standards Committee that promotes and maintains high standards of member conduct and assists members to observe the code of conduct.