The Audit and Governance Committee are scheduled to meet to discuss internal audit progress, counter fraud measures, treasury management, and cyber security. The committee will also review its work programme.

Counter Fraud and Enforcement Unit (CFEU) Update

The committee will receive an update on the counter fraud activities undertaken by the council. The CFEU report will cover fraud risk mitigation, and present the updated Fraud Risk Strategy 2025, Fraud Compliance Report, and Fraud Response Plan.

The Fraud Risk Strategy 2025, which the committee will be asked to note, sets out definitions, motivations for fraud, and principles of risk management. The report pack states that:

Risk management and being 'risk aware' are vital to ensure the effective operation of the Council.

The Fraud Compliance Report summarises the activities in fraud risk mitigation that the CFEU has committed to. It notes that work has commenced in relation to the introduction of service specific fraud risk registers, with the first being issued to the Revenues and Benefits Team. The report also includes the completed Fighting Fraud and Corruption Locally (FFCL) checklist, which confirms a significant level of compliance. Areas shown as partially or non-compliant will be considered for improvement.

The Fraud Response Plan and supporting summary, which the committee will also be asked to note, is intended as a quick reference guide for employees, contractors, councillors, members of the public and third-party organisations regarding the reporting of fraud, theft or corruption.

The CFEU work plan for 2024/25 included a focus on fraud risk mitigation regarding grant schemes and polygamous working as high-risk areas. A Grant Management Policy has been drafted and is in the final stages of consultation. A supporting Grant Management Toolkit detailing fraud risk areas, mitigation and suggestions relating to application drafting and verification activities has been completed and is now available for reference and use by colleagues.

The committee will also hear about the investigation into a former employee who held multiple contracts of employment simultaneously, and was found guilty of committing fraud against Tewkesbury Borough Council, South Gloucestershire Council, and Publica Group Ltd¹.

The individual failed to disclose his multiple jobs to each organisation when taking up new roles. He submitted false timesheets, misrepresenting the hours worked for each employer, and provided inaccurate information on declaration forms regarding secondary employment. Through these actions, he received salaries and other benefits totaling approximately £236,000.

The investigation informed the decision to focus on the risks relating to polygamous working. A fraud risks and mitigations report has been issued to Senior Leadership Team and to Governance Officers, making 16 recommendations including suggestions for wording in employment contracts, the requirement for employees to regularly sign and agree to Code of Conduct documents, declaration of interest processes and how the council manages secondary employment permissions and monitoring.

The CFEU Head of Service forms part of the core Multi-Agency Approach to Fraud (MAAF) group. The core group consists of attendees from Gloucestershire Constabulary Economic Crime Team, Trading Standards, Victim Support, NHS and colleagues from Gloucester City and County Councils. The MAAF has been set up to discuss fraud trends, victim care and communication of fraud scams across Gloucestershire. The Gloucestershire MAAF webpage, to be known as Gloucestershire Against Scams Joint Agency Response or 'Glass Jar' is now complete, and the launch is planned for October.

Internal Audit Progress Report

The Audit and Governance Committee will receive a report on the progress of internal audits. The Internal Audit Progress Report includes a summary of audit work completed since the last committee meeting.

The report includes the finalised audit assignments for the Counter Fraud and Enforcement Unit, and Payroll.

• The Counter Fraud and Enforcement Unit audit confirmed a sound system of governance, risk management and control.
• The Payroll audit reviewed Publica Payroll Controls and Council Service Area Controls.

The report also includes a list of open agreed actions for the committee's information.

Treasury Management Q1 Report

The committee will be asked to note the Treasury Management Q1 Report. The report provides an overview of the council's investment performance during the first quarter of the financial year. According to the report pack, the overall performance of investments in the three months to 30 June 2025 was positive, returning interest of £385,375 or 4.37% against the profiled budget of £289,058 and generating an unrealised capital gain of 2.3% or £260,711 in the year to date. The council complied with the Prudential Indicators for quarter one 2025/26 as set out in the budget approved by full council in February 2025.

Cyber Security Update

The Audit and Governance Committee will receive an update on cyber security.

Audit and Governance Committee Work Programme

The committee will review and note its work programme.