Decision details

With reference to Article 18 of the minute of meeting of the Audit, Risk and Scrutiny Committee of 12 February 2024, the Council had before it a report by the Chief Officer - Finance which provided background information on the recent embezzlement which had been committed and the steps that were being taken to reduce the risk of further financial fraud against the Council.

The report recommended:-

that the Council -

(a)          note the content of the report, and the immediate actions taken to address the control failures, as well as the further and ongoing improvements to Council financial controls and processes;

(b)          note the Internal Audit Plan 2024/25 to 2026/27, from the Audit, Risk and Scrutiny Committee on 12 February 2024, had specific audits/auditable areas that would provide assurance to the Council in 2024/25 of the Council Tax control environment, including Council Tax Income (National Fraud Initiative), and wider counter fraud activities under the scope of Prevention of Fraud, Bribery and Corruption and also Procurement Fraud Controls; and

(c)          note that the Chief Officer - Finance in consultation with the Corporate Management Team would specifically consider the assurance that can be placed on the Revenues and Benefits control environment as part of the preparation of the 2023/24 Annual Governance Statement, which would be reported to a future meeting of the Audit, Risk and Scrutiny Committee.

The Council received a presentation from the Chief Officer - Finance and the Interim Chief Officer - Governance (Legal), followed by an opportunity for questions, which were answered by the relevant officers.

Councillor McLellan moved, seconded by Councillor Yuill:-

That the Council approve the recommendations contained within the report.

Councillor Malik moved as an amendment, seconded by Councillor Ali:-

            That the Council -

(1)      approve the recommendations contained within the report;

(2)      agree that a fraud of this magnitude over a 17 year period highlights failures in the Council control and assurance policy, especially given Internal Audit frequently review the Council Tax function;

(3)      agree that no control system is fool proof and as section 3.15 of the report highlights, controls are designed on the basis that most people are honest and trusted, nevertheless this alleged embezzlement highlights failures on the Council’s part over a 17 year period; and

(4)      agree that the Council should seek to use any relevant remedy available to recover as much money as it can from the individual concerned.

On a division, there voted:-

For the motion  (28)  -  Lord Provost; Depute Provost; and Councillors Allard, Alphonse, Boulton, Bouse, Brooks, Hazel Cameron, Clark, Cooke, Copland, Cormie, Cross, Davidson, Farquhar, Greig, Henrickson, Hutchison, MacGregor, McLellan, McLeod, McRae, Massey, Mennie, Nicoll, Radley, van Sweeden and Yuill.

For the amendment  (13)  -  Councillors Ali, Blake, Bonsell, Crockett, Graham, Grant, Kusznir, Lawrence, Macdonald, Malik, Thomson, Tissera and Watson.

The Council resolved:-

to adopt the motion.