Agenda item

1.     The report was presented by the Interim Head of Counter Fraud, Mr James Flannery.  Mr Flannery highlighted the following key points for Members:

        a)     Mr Flannery highlighted a change in terminology to Members; where active recovery of losses was identified, these would now be reported as savings within the report.

        b)     System changes to the case management system had been implemented to differentiate between the figures of what was crime and what was error.  Further clarity would be provided in future reports.

        c)     The Council of Europe Group Against Corruption Evaluation of Anti-

                Corruption and the Promotion of Integrity at a Sub National Level had

                started, with the submission of evidence to the evaluators completed within the reporting period. A site visited is expected in January 2026 where the evaluators will engage with key stakeholders to assess KCC’s anti-corruption controls and how it promotes integrity. A summary of findings and recommendations would be reported back to the Committee.

        d)     Social Care data had been sent to the National Fraud Initiative; the outcome of the data match was awaited.

        e)     The peer review of the Counter Fraud team’s compliance with the

                Government Counter-Fraud Professional Standards has been completed with KCC Counter Fraud team found to be fully compliant with those standards.

2.     In answer to Member questions and comments, the following was said:

        a)     Mr Flannery explained that due to resource restriction, no further Enforcement Days would be scheduled until 2026.  It was confirmed that the team remained open to working with parking managers of any authority to assist in upskilling Civil Enforcement Officers to conduct proactive enforcement activity.  It was confirmed that video training was available for Enforcement Officers to assist in the initial stages.

        b)     Mr Watts confirmed that a Cyber Security update was being prepared for the Policy and Resources Cabinet Committee for March 2026.  A discussion would be held in see if a single core briefing could be provided.

        c)     A review of services provided to Kent Maintain Schools was being conducted to compare what services were being provided to academies.  This work involved issuing alerts and liaising with school finance officers and the senior leadership forums, to highlight the dangers of spear phishing and cyber security awareness.

        d)     Mr Flannery confirmed that a business case was currently being submitted as part of the medium-term financial planning process and he would be happy to discuss details with the relevant Cabinet Member, if required.  

        e)     It was confirmed that, whilst the report highlighted where there was good practice, Members were reminded that on street parking monitoring was delegated to the District Authorities to complete.  As the parking agreement between KCC and the District Authorities does not cover Blue Badge enforcement, encouragement was given to the relevant portfolio holders of the various district authorities to try put high emphasis on Blue Badge enforcement within their parking teams.

        f)      Since the Head of Internal Audit and Counter Fraud had left KCC, the current interim arrangements within the team continued to work well.  The Government introduction of professional standards within the Counter Fraud profession also helped to provide structure.  A data analyst has been employed with a computer science skill set and they have been working within the Counter Fraud team for past 12 months but their knowledge of Artificial Intelligence (AI) had been utilised across the team’s practices.  Mr Flannery confirmed that the team continued to embrace AI and officers had received training on its use to establish best practices and in line with appropriate governance.

3.     RESOLVED Members NOTED the Counter Fraud Progress Report, which included the reported irregularities from 1 April 2025 to 30 September 2025.

RESOLVED Members NOTED the Progress if the Counter Fraud Action Plan for 2025/2026, set out in Appendix B of the report.