Getting it right – recommendations

We recommend that:

Paragraph

· Bromley should:

- provide feedback to telephone call centre staff on their referrals of possible fraud cases

- require telephone call centre staff to take details from members of the public who report alleged fraud and pass these onto the fraud section.

2.49

· Bromley reviews the fast track scheme to improve the security of claims by:

- ensuring Broomleigh HA allocates additional trained staff in the Orpington office to deal with claims

- verifying Broomleigh HA fast track cases so that full assurance is obtained in the assessment of claims.

2.57

· Bromley:

- revises its claim form to ensure it is consistent with BFI’s Good Practice Guide

- analyses the reasons for further information being requested to identify improvements that can be made to the claim form

- strictly monitors the distribution of claim forms

- ensures only current claim forms are available and all previous versions are destroyed

- decides that if it is to continue to state that acknowledgement of receipt of the claim form will be made within 7 days, it ensures this happens and is incorporated into the post opening processes.

2.69

· Bromley introduces practices to ensure post opening is consistent with practices in BFI’s Good Practice Guide.

2.72

· Bromley:

- ensures sufficient resources are available to open post on the date of receipt

- co-ordinates post opening with the courier service to enable post opened to be received by the staff logging post onto the Academy system on the same day.

2.76

· Bromley instructs the pre-assessment team to check every claim form to ensure it has been fully completed and confirm that the claim form has every relevant question answered on the assessment input document.

2.92

· Bromley:

- redesigns the control sheet to provide assurance and an audit trail that all required checks have been undertaken

- ensures signatures on all renewal claims are cross-checked against previous claims and confirmed.

2.101

· Bromley ensures staff adhere to guidance procedures and obtain original documentation, clearly stamping copies as originals seen to reduce the risk of fraud and error.

2.105

· Bromley ensures , as laid down in its own guidance, it obtains up-to-date proof of IS or JSA(IB) to be satisfied of current entitlement.

2.118

· Bromley:

- ensures capital is verified fully in all relevant cases

- adopts VF by December 2003 at the latest, to allow for its inclusion when re-tendering its benefit contract. This should improve its standard of verification and strengthen the security of the benefit system.

2.129

· Bromley:

- provides cross training to HB and HPU staff to ensure they are fully aware of the requirements of both sides

- improves joint initiatives and working practices to reduce duplication of work and ensure smooth process for claimants

- obtains residency and register details to provide assurance that the claimant is living at the property

- introduces performance indicators to monitor the work flow between HB and HPU

- identifies the likely time of residency so that appropriate benefit periods are set to provide risk assurance.

2.143

· Bromley:

- develops a systematic means of monitoring workflow to track the time taken from receipt of claim to request for further information

- monitors the work of the pre-assessment team to identify areas that require action to ensure claims are passed to the assessment team promptly and accurately

- avoids double handling and ensures all additional information is sought at the first time of request by providing appropriate training and management support.

2.161

· Bromley urgently ensures, in conjunction with Capita and its software supplier, that appropriate systems are in place to prevent payments being made before claims have been determined.

2.169

· Bromley ensures that notices of determination are not issued until client-side has determined the case.

2.169

· Bromley ensures that all benefit claims and decisions rejected at the determination stage are subsequently monitored for return.

2.169

· Bromley:

- introduces clear and precise measures to prioritise types of correspondence received

- puts in place controls that will effectively identify and age profile outstanding post

- introduces systems which will provide management assurance that:

· controls are effective

· workflow is being managed

· priorities are being met.

2.179

· Bromley:

- urgently reviews all existing reported POA cases and correctly updates cases so that only correct POA cases are reported

- identifies where payments are being made in breach of the regulations and takes the necessary action to correct these payments and record the necessary information to ensure correct completion of the subsidy claim form

- introduces a reporting mechanism to allow accurate age analysis of POA cases to enable appropriate management information and control to be provided

- provides staff training on POAs to ensure appropriate cases are put into payment

- incorporates client checking of POAs into contract monitoring procedures

- ceases making POAs on RR cases.

2.190

· Bromley:

- immediately introduces management checks by both client and contractor

- designs and implements a range of management checks that brings together and supports all components of the Government’s fraud strategy

- introduces a target for all operational managers that ensures checks are undertaken, and on a monthly basis reports the results into a corporate performance system.

2.197

· Bromley introduces appropriate training to counter staff and staff involved in post opening on original documentation and provides ultraviolet scanners to help in identifying original documentation.

2.203

· to strengthen its working relationship with the RO, Bromley should:

- introduce a mechanism for measuring performance against the targets contained in the SLA

- ensure RO referrals are issued on time in all appropriate cases by printing its referrals locally at Exchequer House and delivering them by courier to the RO on a daily basis

- implement procedures to ensure that replies from the RO are monitored and actioned as soon as possible after receipt

- introduce procedures for dealing with PTDs, to minimise unnecessary subsequent referrals

- introduce formal arrangements to meet regularly so that effective communication takes place.

2.215

· Bromley ensures that:

- it complies with the requirements of the SLA with BA and monitors performance against the standards set down

- the nominated liaison officer attends the quarterly liaison meetings.

2.224

· Bromley and ES agree an SLA. The SLA should include agreed targets and a mechanism for measuring performance.

2.227

Keeping it right – recommendations

We recommend that:

Paragraph

· to fully meet the requirements of Schedule 6, Bromley:

- revises its existing CTB notice of determination to include details of the claimant’s right to a written statement to bring it in line with all other notices

- reviews all its notices of determination to ensure that the period of the award is the only period listed. This should help prevent unnecessary enquiries being made about a period to which there is clearly no entitlement.

2.232

· to help reduce the number of avoidable overpayments, Bromley issues guidance to staff on when to set shorter benefit periods for cases of known high risk.

2.240

· Bromley considers concentrating additional resources on those cases that would reap dividends in preventing or detecting fraud. By undertaking a risk analysis and a sustained programme of visits to claimants deemed as high risk, Bromley should be able to reduce the numbers of overpayments and could also claim additional subsidy.

2.244

· Bromley considers developing additional ways of publicising the duty to report changes of circumstances. For example, an advice notice could be sent with each benefit payment made, whether by cheque or by BACS.

2.247

· Bromley establishes the number of renewal claims not being returned, and where possible the reasons, and considers referring cases to the fraud section for investigation.

2.250

· Bromley:

- immediately withdraws the additional check undertaken by the client-side and takes full account of the requirements of HB regulation 79(1)

- reviews all previous informal interviews to ensure that the decisions made were legally valid.

2.261

· Bromley takes urgent action to improve performance in the handling of requests for first- and second-stage reviews. It should identify, analyse and address the causes for the considerable delays in dealing with such requests.

2.263

· Bromley ensures staff:

- are issued with training and guidance on how to apply the fit and proper person test in appropriate cases

- apply the test appropriately.

2.273

· Bromley discusses procedures to prevent and reduce overpayments with Broomleigh HA by:

- ensuring Broomleigh notifies Bromley when it knows tenants’ circumstances change

- examining credits on Broomleigh’s rent account to recover overpayments where appropriate.

2.279

· Bromley undertakes a review of its cheque production procedure, to satisfy itself that all appropriate security measures are being followed in the dispatch of cheques.

2.288

· Bromley and the contractor ensure that:

- an immediate investigation takes place to examine any system transactions after the dates employees had left

- all current users are reviewed and deletions made where necessary

- formal procedures are adopted to ensure that user permissions are deleted on the employee’s last day at work.

2.296

· Bromley, in consultation with the contractor, reduces the risk of internal fraud and error by ensuring:

- access levels are reviewed for each member of staff and restricted to appropriate levels. The emphasis must be to minimise the update facility for each user

- a review of access levels is undertaken if an employee changes their role within Bromley.

2.301

· Bromley checks the setting of the HB and CTB indicators for all new and renewal claims received and passes this information on to BA to ensure errors are corrected.

2.304

Putting it right – recommendations

We recommend that:

Paragraph

· Bromley ensures that its determination team and its contractor undertake at least a minimum of 10% management checks on overpayment classifications to ensure they are correctly identified, satisfying themselves as to the integrity of any subsequent subsidy claims to DWP.

2.319

· Bromley takes steps to ensure that notices of determination are not sent to claimants until the client-side has made a determination. Delaying the dispatch of the notice of determination will help reduce the number of incorrect notices from being sent and improve the standard of customer service provided.

2.320

· Bromley takes steps to revise its current control sheet to ensure that:

- assessment staff provide all relevant facts to show why an overpayment has been raised, giving details of the overpayment calculation and classification

- determination officers clearly state:

· that the overpayment calculation is correct

· that the classification is correct

· that the overpayment is recoverable

· from who the overpayment is recoverable.

A revised form would make it clear that the requirements of the appropriate HB and CTB Regulations are being properly met so that subsequent recovery action is lawful.

2.330

· Bromley introduces the full range of recovery powers available, to reduce the level of outstanding debt and help prevent cases from being overlooked or ignored when all other appropriate action has been taken.

2.336

· Bromley investigates why there was such a discrepancy in the debts raised between 1998/99 and 1999/2000 and reviews its overall target to ensure all appropriate debt identified has been recognised.

2.344

· Bromley:

- fully uses its power to recover overpaid HB debt from landlords, after notifying all private landlords and HAs of its intention to introduce the powers of recovery under the Fraud Act

- makes more use of the landlord debt report, by undertaking discussions with the worst debtors to secure a negotiated settlement of debts.

2.355

· Bromley:

- undertakes an age analysis of overpayment debts on the system

- explores all avenues of recovery and

- instigates recovery action where possible.

2.359

· Bromley staff involved in the investigation of fraud work are fully utilised in one team to ensure that standards of training, the range and quality of investigations and performance measures are consistently applied.

2.363

· Bromley keeps procedural guidance under regular review to ensure that it fully complies with legislation, good practice, current focus on fraud work and reflects recommendations of IA and Bromley’s own action plan.

2.367

· Bromley staff involved in the investigation of fraud have access to and comply with the CPIA code of practice and the RIPA. Bromley staff involved in the claiming, management checking and validation of WBS must have full access to all relevant legislation and guidance circulars. Bromley should ensure that it holds a copy of the Income Related Benefits (Subsidy to Authorities) Order 1998.

2.377

· Bromley provides the same level and range of training to all staff involved in the investigation of fraud. This training should ensure that all staff are fully equipped to undertake the full scope of investigatory work required to meet Bromley’s fraud strategy and prosecution policy.

2.382

· Bromley uses information from other DWP sources to develop its risk assessment of fraud in the area. This risk assessment should be used to:

- help develop a fraud strategy and business plan

- target the claims that represent the highest risk of fraud.

2.387

· Bromley amends its referral criteria to ensure that cases are only referred to fraud at the stage when action taken to verify a claim results in a suspicion of fraud.

2.396

· Bromley ensures that future fraud awareness training addresses and incorporates the inclusion of all information and evidence which supports the suspicion of fraud.

2.398

· Bromley reviews information sought on its standard referral form so that it provides a more detailed picture of the suspicion and alleged fraudster in line with advice provided in the BFI Good Practice Guide.

2.402

· Bromley:

- ensures its hotline is answered in person rather than by an answerphone where possible

- uses a standard form to collect information from telephone callers reporting suspected fraud to the main switchboard and caller centre.

2.415

· Bromley reviews the process for recording Capita fraud referrals onto the master Bromley case management system to ensure that all relevant information is captured.

2.418

· Bromley revises its fraud referral guidance to ensure that only appropriate cases are referred to and accepted by fraud staff. This guidance should set out the distinction between verification and investigation work and form part of future fraud awareness training.

2.427

· Bromley urgently drafts and implements procedures, including liaison with the Post Office, to ensure that all items returned by the Post Office under the Do Not Redirect scheme are recorded and referred to fraud.

2.432

· Bromley revises its procedure notes for visiting officers to ensure they are conducive to conducting quality interviews aimed at verifying all relevant aspects of the claim.

2.436

· Bromley reintroduces periodic visits to HMOs to ensure their continuing compliance with their responsibility to report changes of circumstances.

2.436

· Bromley:

- adopts a wider risk based approach to claims selected for proactive visiting

- ensures the results of all visiting activity are fed back to assessment staff for recording on benefit claim files.

2.442

· Bromley develops and uses an earnings enquiry form, along the same lines as that used by BFIS, which requests all the information necessary to identify the employee, the extent of their earnings and the identity of potential witnesses.

2.473

· Bromley obtains a stock of CP2(LT) forms from BA and conducts living together interviews in accordance with the guidance and regulations.

2.489

· Bromley maintains a master file containing a copy of the risk assessment conducted as justification for the drive. This master file should also be used to retain:

- a schedule of all claims targeted that documents the current position on each investigation

- non claim-specific correspondence

- other general information, including statistics relating to the drive

Each of the visiting officer's investigation files should then be cross-referenced against the master file.

2.494

· Bromley fraud officers, to ensure undisputed evidence is obtained during an investigation, must:

- ask open questions of claimants and landlords about the reasons for not declaring a change of circumstances

- prove fraudulent intent by a claimant or landlord, based on the balance of probability.

2.509

· Bromley ensures that all investigation staff and the validation officer are fully aware of the criteria for the claiming of WBS as set out in the Subsidy Order.

2.509

· Bromley:

- urgently pursues a suitable outlet for its prosecution work that allows the full range of sanctions available

- introduces a fraud strategy that supports the aims of Bromley’s prosecution policy and addresses the aims and objectives required at an operational level.

2.520

· Bromley reviews its management checks to ensure they provide:

- quality assurance on all areas and aspects of fraud work

- future guidance and feedback to staff on the effectiveness of investigative work undertaken.

2.529

· Bromley revises its performance indicators to provide targets and measures both individually and collectively on:

- file holdings

- output of work

- quality and effectiveness of performance

- use of inspectors’ powers and sanctions.

2.531

· Bromley reviews its collection of management information so that it provides a composite return for all fraud staff.

2.536

· Bromley:

- ensures that all information on potentially violent claimants and unsafe addresses is shared among all staff of Bromley and Capita

- incorporates training on dealing with potentially violent situations into a training programme for those fraud staff with regular claimant contact.

2.538

· Bromley and BFIS:

- introduce a series of ‘dipstick’ checks to ensure the agreed targets are being achieved

- provide staff with access to the SLA or a desk aid reminder of agreed service levels based on core requirements of the SLA.

2.547

Making sure the strategy works – recommendations

We recommend that:

Paragraph

· Bromley underpins its corporate anti-fraud and corruption policy with an operational strategy specifying:

- counter fraud objectives

- achievable targets which meet operational objectives

- measurements of quality assurance in the investigative process and performance against achievement.

2.559

· Bromley reviews its client-side to ensure it has appropriate staffing to monitor the contractor effectively and carry out its determinations accurately and promptly.

2.579

· Bromley and the contractor:

- review the Academy system capabilities and the configurations set to improve system security and provide all available online guidance to staff

- urgently agree the management information required, using the guidance above and sharing best practices from other Academy users and outsourced sites. The frequency of all information should be agreed and adhered to.

2.599