Most, 64pc of local government public finance managers believe fraud is a major risk for local authorities, according to a survey. It was by Perpetuity Research on behalf of CIPFA (Chartered Institute of Public Finance and Accountancy). A report, Tackling Fraud in the Public Sector, says 69pc believed poor organisational controls leave councils vulnerable to fraudsters.
Half (49pc) said staff were not adequately trained to identify fraudulent activity.
The importance of prevention emerged as a key theme. A large majority (87pc) of respondents reported that preventative strategies would be the key means of fraud in local government in the future. Strong governance and long-term planning were also identified as essential to eliminating vulnerabilities within councils.
Rob Whiteman CBE, CIPFA CEO said: “Fraud, bribery and corruption are constantly evolving threats that undermine financial resilience and put even greater pressure on public services at a time of crisis. The increased strain on resources and governance as a result of COVID-19, and the prevalence of technology-enabled frauds, compound these threats even further.
“We cannot prevent all financial crime. What we can do is put in place measures to ensure that authorities have an awareness of the risks they face in a constantly changing world and are equipped to mitigate these. Our focus in the future must shift to long-term planning and preventative strategies to ensure that fraudsters cannot threaten the resources councils need to provide for the most vulnerable.”
And the criminologist Prof Martin Gill, pictured, founder and director of Perpetuity said: “In these stressful times the police have put us on notice that fraudsters are active, exploring the new opportunities that are being created for them by the current epidemic. Never has it been a more important time to understand both the risks and the need to adapt responses accordingly.
“This research provides important and timely insights from senior officers in local government across the country on the nature and level of fraud risks and identifies some of the key barriers to improving the response. These findings must be heeded.”
CIPFA adds that the online survey (responded to by 303, mainly managers in finance, human resources, IT, internal audit and counter fraud) was done to improve awareness and generate new insights into how fraud is perceived and can be combatted across local government. Researchers also ran three roundtable discussions – two in London, one in Chester.
You can download the 66-page report in full, or a summary, on the Perpetuity website.
