Agenda item

Mr Derek Murphy (Cabinet Member for Economic Development), Simon Mitchell (Assistant Director Adults Commissioning) and Mark Albiston (Director of Adult Social Care and Health West Kent) were in attendance for this item.

1.    The Counter Fraud Manager introduced the report which detailed the Counter Fraud activity undertaken for the period of April 2023 to August 2023, including reported fraud and irregularities, and provided an update on the Counter Fraud Action Plan for 2023/24 covering reactive and pro-active activity. It was said that there had been an increase in referrals compared to the same period in 2022/23. The increase was primarily driven by blue badge referrals, following work with districts to improve awareness in this area. It was said that the cost-of-living crisis had contributed to increased motivation to commit fraud. The team were working to mitigate the opportunity for fraud and errors. Regarding blue badge enforcement, it was said that two further blue badge prosecutions had occurred since the drafting of the report.

2.    It was highlighted that the Counter Fraud Team had completed a substantial investigation into the way providers invoice and the way KCC pays providers within the supporting living contract. The review identified improvements needed to ensure that there was a direct link between the care being delivered and the invoicing within the provider. It was said that there was a lack of information reported to KCC by the provider and, therefore, there was a lack of reconciliation occurring.

3.    A report issued by Thanet District Council reviewed the way in which consultancy services were procured for East Kent Opportunities (EKO) and had identified a failure to adhere to the procurement rules. It also identified that there was a lack of metrics to inform the performance of the regeneration project to the Governance and Audit Committee.

4.    In response to questions and comments from Members it was said that:

a)    The Department of Transport was exploring the digitisation of blue badges to reduce fraud risk.

b)    Members were reminded that there was a legal obligation to provide a direct payment option to individuals in receipt of adult social care. There was a low level of take-up in Kent compared to that in other councils. Payment errors primarily occurred through the Mosaic system when the recording of a date-of-death did not result in a cancelled payment package. The Director of Adult Social Care and Health West Kent said that while fraud risk may increase in this area, there was ongoing cross-directorate work and engagement with the partners to mitigate this risk.

c)    Data provided by the Kent Intelligence Network gave insight into existing and emerging fraud risks. The Counter Fraud team used this data to inform their work with district councils.

d)    The Corporate Director Growth, Environment and Transport confirmed that the relevant management actions to ensure compliance with the financial and procurement regulations in EKO procurement would be implemented by December 2023.

e)    The General Counsel highlighted to Members that there was an upward trend in the number of fraud and irregularity referrals per month. The Head of Internal Audit said that a key challenge was determining the priority of the referrals.

5.    RESOLVED to:

a)    Note the Counter Fraud Update report for 2023/24

b)    Note the progress of the Counter Fraud Action Plan for 2023/24

c)    Agree that a progress report on the management actions undertaken in response to the Supporting Living investigation be provided to the Governance and Audit Committee in six months.