Fraud

Whilst Derbyshire County Council does everything it can to prevent fraud occurring and identify when it does, sometimes fraud will occur.

It is therefore important that we all understand what fraud is, examples of common frauds within schools, and how you can raise a concern if you suspect fraud might be taking place.

What is fraud?

Fraud occurs when one person deceives another to get a benefit for themselves.

When fraud happens in schools, it takes money away from pupils and teachers, and in so doing, can affect staff morale, funding available for education, school events and trips.

Examples of frauds in schools

Fraud in schools is rare; however, when it does occur, it tends to relate to:

• false payments for goods and services – when the school pays for goods or services that it did not receive
• bank mandate fraud – amendment of supplier bank details, resulting in payments being made, to which the recipient is not entitled
• theft of monies – theft of cash held by the school, intended to pay for school dinners, trips, imprest account or private school fund
• property misuse – unauthorised personal use of school property, vehicles or equipment.
• recruitment fraud – when an applicant provides false identity, right to work, qualification or reference information in order to obtain a job at the school.

Fraud prevention / detection

The school’s governance framework plays a key role in the prevention and detection of fraud. Key elements include:

• Financial regulations, procedures and roles and responsibilities – which detail agreed spending limits, processes for ordering and payment, and enforce a segregation of duties in the raising of orders, goods receipt and invoice approval
• Whistleblowing policy – detailing how concerns can be raised and the protections applicable to those that do so
• role of governing body and supporting sub-committees – in providing transparency and accountability in decision-making

How to report a concern

As part of your role, you may become aware of a potential fraud or just feel that something is wrong. If you do, it’s important you raise this with the headteacher and the assistant director of finance (audit) via email: ReportFraud@derbyshire.gov.uk or telephone: 01629 533334, so that the matter can be investigated.

Further guidance on how to raise concerns, including your right to do so anonymously, will be detailed within your school’s Whistleblowing policy.

Further guidance

If you would like further information on fraud, how to identify it and how to report concerns; together with some worked examples of what is, and is not, fraud, please refer to the ‘Fraud in Schools’ e-learning module available via Derbyshire Learning Online.

If you have any further queries about fraud or about a situation at your school, please contact:
Jonathan Lake – Schools Lead - Email: jonathan.lake@derbyshire.gov.uk 
(Or another member ot the Audit Services team will be happy to help you): Telephone: 01629 532941