Helping you to tackle fraud

Last week, Eric Pickles, Communities and Local Government minister, published his top ten tips for tackling local authority fraud. With over £2 billion at stake, you will probably undertaking or planning activities in each of these areas. Below, RSM Tenon, which has one of the largest Fraud Services teams of any UK accounting and professional services firm, sets out some ways in which you can implement Pickles’ advice.

How to tackle local authority fraud

  1. Measure exposure to fraud risk
  2. More aggressively pursue a preventative strategy
  3. Make better use of data analytics and credit reference agency checks to prevent fraud
  4. Adopt tried and tested methods for tackling fraud in risk areas - such as blue badge scheme misuse
  5. Follow best practice to drive down Housing Tenancy and Single Person Discount fraud
  6. Pay particular attention to high risk areas such as procurement and grant awards
  7. Work in partnership with service providers to tackle organised fraud across local services
  8. Maintain specialist fraud investigative teams
  9. Vet staff to a high standard to stop organised criminals infiltrating key departments
  10. Implement national counter fraud standards developed by the Chartered Institute of Public Finance and Accountancy

Why tackle local authority fraud?

Eric Pickles said: "It's time to get tough and take on the fraud cons. At a time when we need to cut the national deficit and government waste, cleaning up fraud could save the taxpayer over £2 billion in recovered cash currently being fraudulently stolen or lost to tax cheats.  Better prevention, detection and recovery of fraud will help reduce the financial pressure on councils and help protect frontline services.

Mike Haley, Director of Public Sector Fraud, National Fraud Authority said: "At a time when councils are attempting to protect front line services, fraud can no longer be tolerated. Substantial savings can be made, as demonstrated by the best local authorities, and reducing fraud can make a significant difference to local government finances.

Despite the cuts in public sector spending, countering fruad is an area that can give you a return on your investment by reducing your fraud losses to an absolute minimum."