20 Shared Services Agreement - Fraud Investigation Services
(Cabinet Member with Special Responsibility Councillor Whitehead)
Report of Director of Corporate Services
Minutes:
(Cabinet Member with Special Responsibility Councillor Whitehead)
Cabinet received a report from the Director of Corporate Services which sought approval for the continuation of the existing cost sharing arrangement with Preston City Council and Fylde Borough Council to provide a Corporate Enquiry Team, to help prevent and detect fraud in the local authority area. The report was exempt from publication by virtue of Schedule 12A, Paragraph 3 of the Local Government Act 1972.
The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:
Option 1: To agree the continuation of the cost sharing arrangement with Preston City Council and Fylde Borough Council, in relation to the Council’s counter fraud activities
Advantages: Objective for the team to be self-financing Flexibility and responsiveness to changing levels of demand/need within the partner organisations.
Existing links and collaboration with Internal Audit
The retention of qualified staff with proven expertise in the fraud environment
Disadvantages: None identified
Risks: Failure to achieve self-financing objective
Option 2: To not agree the continuation of the shared service arrangements with Preston City Council and Fylde Borough Council, and instead instruct Officers to consider alternative options to prevent and detect fraud in the local authority environment.
Advantages: None identified
Disadvantages: Shortage of specialist counter fraud skills within the Council
Lost opportunity for tackling fraud in a cost-effective, collaborative manner.
Inevitable disruption No continuity in service delivery
A break up of the partnership would create uncertainty and insecurity for staff within the shared service with the likelihood of losing key staff.
Risks: There are implications for the Council if the arrangement doesn’t proceed with the risk of not having an adequate deterrent in place to prevent fraud if experienced staff are lost, nor the resources in place to investigate fraudulent activity.
The officer preferred option is Option 1. The landscape in which Councils operate has changed as a result of Covid-19; there now being a higher profile regarding fraud and its impact on public funds generally, at a time when Councils and other public bodies are facing huge financial challenges. Continuation of the cost sharing arrangement for counter fraud services ensures the Council is resourced to prevent fraud from occurring, and where prevention is not possible, is resourced to provide a proportionate response, enabling the timely and effective detection, investigation and prosecution of fraudsters.
Councillor Whitehead proposed, seconded by Councillor Brookes:-
“That the recommendation, as set out in the report, be approved.”
Councillors then voted:-
Resolved unanimously:
(1) That Cabinet approves the continuation of the cost sharing arrangement with Preston City Council and Fylde Borough Council on an outline 10 year basis underpinned by a rolling 1-year notice period, for services in relation to counter fraud activity.
Officer responsible for effecting the decision:
Director of Corporate Services
Reasons for making the decision:
The decision is consistent with the corporate priority of being a responsible Council, protecting the public purse, with an ambition to create an “Inclusive and Prosperous Local Economy”. The ... view the full minutes text for item 20