the future for fraud making anti-fraud activities work march 2015, cipfa north west phil sapey,...

THE FUTURE FOR FRAUDMAKING ANTI-FRAUD ACTIVITIES WORK

March 2015, CIPFA North WestPhil Sapey, Senior Fraud Manager, Mazars

Contents

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Evolution The evolution of anti-fraud activities - how we got here (wherever that is)

Success What will it look like?

Horizon Scanning Definitions, scale and case studies

The Evolution of Anti-Fraud

3

• Evolution

• Un-evolution

• Super evolution

• Compliance evolution

HOW HAS YOUR FRAUD TEAM EVOLVED?

Evolution of Anti-Fraud• There is no Fraud in Local Government

Incentives…

• We should look at Benefit fraud There is a lot of benefit fraud… Could there be fraud anywhere else?

• We need a corporate anti-fraud capacity Housing fraud Exemptions and discounts Disabled parking

5

The Un-Evolution Option

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• Benefits fraud is being investigated by the DWP

• We don’t have any other fraud or fraud risk

Super Evolution of Anti-Fraud

• We need a corporate anti-fraud capacity

Addressing organisational culture How do we stop people committing or attempting fraud Pro-active anti fraud work Reactive anti fraud work

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Compliance Evolution of Anti-Fraud

• We need a corporate anti-fraud capacity

Because people will notice if we don’t - transparency agenda Failure to prevent bribery legislation? Failure to prevent financial crime legislation?

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What should we be looking out for?

Horizon Scanning

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• SFIS

• Transparency

• CIPFA - Code on Fraud and Corruption

• Emerging risks

SFIS

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Comms

Referrals

Investigations

Future?

Transparency

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Effective

Explanation

Risky?

Transparency

Local Authorities must publish the following information about their counter fraud work:

• Number of occasions they use powers under POSHF or similar

• Number of employees (absolute and fte) undertaking investigations and prosecutions of fraud

• Total number of professionally accredited counter fraud specialists

• Total amount spent by the authority on the investigation and prosecution of fraud, and

• Total number of fraud cases investigated

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CIPFA - Code on Fraud and Corruption

AcknowledgeIdent

ifyStrategyResourcesAction

13

Emerging risks???

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Bank Mandate fraud

Procuremen

t frau

d

Account

s payable

Sale of

assetsHousing

Depots,DLOs, and satellites

Bank mandate fraud

Procuremen

t frau

d

Account

s payable

Sale of

assetsHousing

Depots, DLOs and satellites

Emerging Risks???

15

Don’t Forget the Risks that have Always Been There

16

An Education in Fraud in Schools

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Why Schools?

• Satellite• Governance• Internal Audit nose• Delivery model risk

• Academies• Autonomy• Accountability

What to do?• Schools fraud

healthcheck

What Does Success Look Like?

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Success - Policies/Strategy

19

Prevent

DetectDeter

Sanction

Redress

Acknowledge

Prevent

Pursue

Acknowledge

IdentifyStrategy

Resources

Action

Success – plan & report

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Whistleblowing/reporting

Member approval - ongoing

Awareness/ Training

Plan of workWith agreed outcomes

Internal Audit

Identifying Risk

Innovative exercises

Understanding fraud and fraud risksReceiving regular updates on investigations;

Reviewing the organisation’s top risks including fraud risk; Approving a pro-active anti-fraud plan of work

Communicating cultureChair of Audit Committee or other Counter Fraud Champion writing introductions to Counter fraud

communications and training sessions

Encouraging honesty and opennessSupport for the reporting of concerns and receiving updates on the number and type of whistleblowing

referrals received

Phil.sapey@mazars.co.uk

07810 635202

https://www.linkedin.com/pub/phil-sapey/1A/312/B1B

@philsapey

Questions?

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