Interesting figures released by the Audit Commission reveal that £178 million of fraud was detected by local government in the last year, with just over three quarters of that total being detected by one quarter of councils.
A total of 107,000 fraud cases were identified. This actually represents a fall of 14% in the number of frauds detected, while at the same time there was an average increase in value of 15% for each detected fraud.
This is the first year the Commission has required local authorities to separately identify detected frauds against schools in its annual survey. This data only covers maintained schools, as free schools, foundations and academies are outside the Commission’s remit. Councils reported 191 cases of fraud in schools with a total worth of £2.3 million, 86 cases of which (with a value of £1.9 million) involved internal fraud.
The Commission also noted regional variations in fraud detection. In 2012/13, significantly lower levels of fraud detection were witnessed in most regions outside London, compared with the previous year. The falls in detection ranged from 6% to 46%. However, London boroughs saw a 36% increase in both the number and value of frauds detected.
One of the striking findings of the survey of local authorities was that 79 district councils detected no non-benefit fraud at all, causing the Commission to question council priorities and the resources allocated to tackling fraud.
“I would urge all councils to review their local policies to ensure they are doing all they can to detect and record fraud cases," said Jeremy Newham of the Audit Commission. "Our report has many examples of what can be achieved by councils who acknowledge the scale of the problem and apply appropriate and proportionate resources to tackle fraud.”
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