the future for fraud making anti-fraud activities work march 2015, cipfa north west phil sapey,...
TRANSCRIPT
THE FUTURE FOR FRAUDMAKING ANTI-FRAUD ACTIVITIES WORK
March 2015, CIPFA North WestPhil Sapey, Senior Fraud Manager, Mazars
Contents
2
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
6
• 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
7
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?
8
What should we be looking out for?
Horizon Scanning
9
• SFIS
• Transparency
• CIPFA - Code on Fraud and Corruption
• Emerging risks
SFIS
10
Comms
Referrals
Investigations
Future?
Transparency
11
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
12
CIPFA - Code on Fraud and Corruption
AcknowledgeIdent
ifyStrategyResourcesAction
13
Emerging risks???
14
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
17
Why Schools?
• Satellite• Governance• Internal Audit nose• Delivery model risk
• Academies• Autonomy• Accountability
What to do?• Schools fraud
healthcheck
What Does Success Look Like?
18
Success - Policies/Strategy
19
Prevent
DetectDeter
Sanction
Redress
Acknowledge
Prevent
Pursue
Acknowledge
IdentifyStrategy
Resources
Action
Success – plan & report
20
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
07810 635202
https://www.linkedin.com/pub/phil-sapey/1A/312/B1B
@philsapey
Questions?
21