Revenues and Local Taxation
Administration with Fraud
England, Wales and Scotland
Monday 7th December 2015
9.25am–12.30pm (incl. 5 mins. for reading)
Time allowed: 3 hours
Section A: Answer 10 Questions out of 15, each question carries a maximum of 5 Marks. You are advised to spend a maximum of 30 minutes on this section.
Section B: Answer 1 Questionout of 2, with the question carrying a maximum of 50 Marks. You are advised to spend a maximum of 30 minutes on this section.
Section C: Answer 4 Questions out of 7, each question carries a maximum of 50 Marks. You are advised to spend a maximum of 30 minutes per question.
Where there are regional variations within the question, answer in respect of the region where you currently work. Specify which region this is.
Maximum marks 300
SECTION A – answer TEN out of FIFTEEN questions
Outline answers only required in this section
1. What is the National Fraud Initiative?
2. Explain a financial penalty for council tax administration and when it can be
administered.
3. What is a Job Specification?
4.Explain the term ‘Equality Impact Assessment’.
5. What is case law?
6.What is the main role of either the Local Government Association or the Welsh Local Government Association or the Convention of Scottish Local Authorities?
7. What is the role of Section151 officer in England and Wales and or Section 95 officer in Scotland?
8.What do you understand by the term ‘internal check’?
9.What are ‘Financial Regulations’ in relation to a local authority?
10. What is a Public Private Partnership?
11.What is a Customer or Citizens Panel?
12.Briefly explain on-street parking.
13. What do you understand by the term ‘delegated powers’?.
14. What is a politically restricted post?
15. What are the main roles of a councillor?
SECTION B – answer ONE out of TWO questions
16. It is claimed that fraud in revenues services now costs taxpayers over £19 million a year.
Write a report, explaining what steps are being taken to detect and prevent fraud.
17.You have been asked to review the award of Empty Property Rate Relief, following an increase in rates avoidance in your authority’s area. What steps would you take to ensure that awards are correctly made?
SECTION C– answer FOUR out of SEVEN questions
18. A complaint has been received about the fees charged by enforcement agents
representing your organisation. Draft a letter, responding in line with your organisations
complaints procedure.
19. In the current round of budget cuts and austerity,the council is considering the closure of
the authority’s Cash Offices. As the Revenues Team Leader, draft a briefing note outlining
the issues to consider before closing the Cash Offices and what alternative methods of
payment should be offered to taxpayers. You should clearly stat the factors that need to be
considered before introducing such alternative methods.
20. Your authority has received an increasing number of Freedom of Information requests. A
number concern the Revenues Service. Outline the key points when dealing with any
Freedom of Information requests.
21.The External Auditor has sought clarification on the write off of council debts that are
outstanding. The Auditor has asked for details of the steps taken before considering any
debts for write off and the procedure for writing off any debts. Draft a memo in response to
the Auditor.
22. Your authority has a Library Service, which consists of a central library in the town centre
and a mobile library service. Explain the various sources of income that can be generated
from the library service. You should explain the difference between cash and credit income
and how debts can be enforced should payment not be received for any service provided.
23.Discuss the benefits to the organisation and staff of encouraging staff to work from home.
24. Please outline what help (both mandatory and discretionary) with rates that businesses are
given by your authority.
Cert L3 Revenues and Local Taxation Administration with Fraud
Examiners Comments
December 2015
SECTION A – answer TEN out of FIFTEEN questions
Outline answers only required in this section
General Comments: 15 students attempted this paper and the standard was generally high. However some students should read and answer the question asked. Others should write the correct number (or even a number) against that answer – no students lost marks for this though.
1. What is the National Fraud Initiative?
13 out of 15 students answered this question with an average mark of 4.46. A good answer should have stated that the National Fraud Initiative (NFI) is an exercise that matches electronic data within and between public and private sector bodies to prevent and detect fraud. This can include Council Tax data.
2. Explain a financial penalty for Council Tax Administration and when it can be
administered.
12 out of 15 students answered this question with an average mark of 5. A good answer should have stated thata financial penalty of £70 or £280 in some enhanced cases (£50 and £200 in Scotland) can be imposed for failure to provide information with 21 days for Council Tax. It can be appeal against but can withhold payment before any appeal can be heard. Also applicable for Council Tax Support eg you can impose penalties.
3. What is a Job Specification?
11 out of 15 students answered this question with an average mark of 4.27. A good answer should have stated thata job specification is a detailed description of the role, including all responsibilities, objectives, and requirements. A person specification is a profile of your ideal new employee, including skills, experience, and personality type.
4.Explain the term ‘Equality Impact Assessment’.
4 out of 15 students answered this question with an average mark of 4.75. A good answer should have stated that an equality impact assessment (EIA) is a process designed to ensure that a policy, project or scheme does not discriminate against any disadvantaged or vulnerable people.
5. What is case law?
14 out of 15 students answered this question with an average mark of 4.21. A good answer should have stated thatcase law is the set of existing rulings which have made new interpretations of law and, therefore, can be cited as precedent. In most countries, including most European countries, the term is applied to any set of rulings on law which is guided by previous rulings, for example, previous decisions of a government agency - that is, precedential case law can arise from either a judicial ruling or a ruling of an adjudication within an executive branch agency. Trials and hearings that do not result in written decisions of a court of record do not create precedent for future court decisions.
6.What is the main role of EITHER the Local Government Association OR the Welsh Local Government Association OR the Convention of Scottish Local Authorities?
6 out of 15 students answered this question with an average mark of 2.67. A good answer should have stated that the relevant Association is the national voice of local government as appropriate in England, Wales and Scotland. It seeks to be an authoritative and effective advocate on behalf of its members. The LGA seeks to promote better local government; it maintains communication between officers in different local authorities to develop best practice. It also represents the interests of local government to national government and seeks to improve the image and reputation of local government generally. These kindred organisations need to be covered by students in their studies
7.What is the role of S151 officer in England and Wales and s95 in Scotland
8 out of 15 students answered this question with an average mark of 3.63. A good answer should have stated that to the stewardship and management role for this key financial officer post plus that they need a specific qualification and are a statutory officer. This is a key part of the syllabus.
8.What do you understand by the term ‘internal check’?
12 out of 15 students answered this question with an average mark of 3.92. A good answer should have stated that an effective system of internal controls provides a level of assurance that financial information is reliable and the local government is meeting compliance with applicable regulations and internal procedures. Achieving regulatory compliance should be viewed as the fundamental goal of an effective internal control system with further enhancement being ongoing as part of an overall organisational risk management process. Developing the appropriate internal controls to minimise the risks, fraud or error to an acceptable level is achieved through a sound understanding of both the legislative framework and risk management practices.
9.What are ‘Financial Regulations’ in relation to a local authority?
2 out of 15 students answered this question with an average mark of 5. A good answer should have stated thatFinancial Regulations are one of a set of management documents which collectively control and co-ordinate the financial affairs of the Council and are incorporated into the organisations Constitution. The Council’s s151 (s95 in Scotland) officer is generally responsible.
10. What is a Public Private Partnership?
10 out of 15 students answered this question with an average mark of 4.5. A good answer should have stated that PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP, the cost of using the service is borne exclusively by the users of the service and not by the taxpayer.
11.What is a Customer or Citizens Panel?
4 out of 15 students answered this question with an average mark of 4. A good answer should have stated that Citizens' or Customer Panels are made up of residents who have agreed to tell respective councils what they think about local issues and services. This can be done face to face or in surveys.
12.Briefly explain on-street parking.
6 out of 15 students answered this question with an average mark of 5. A good answer should have stated that Parking is a vital part of the syllabus and should be covered by tutors and students. A good answer should have stated that Is parking on the street rather than off street car parking. This particularly in towns and cities is becoming more and more controlled with ticket machines, permits and restricted parking such as residents own parking.
13. What do you understand by the term ‘delegated powers’?.
9 out of 15 students answered this question with an average mark of 2.22. A good answer should have stated that delegation can only be given by Council or Elected Mayor but answers outlined that delegation could be given by officers. A good answer should have stated that Delegated powers are where the power of the Council (or elected Mayor) is handed to a Committee, Elected Member or officer. Certain decisions cannot be given delegated powers. An example of delegated powers could be the authorisation of write offs under a certain amount. A good organisation will have a list of delegated powers.
14. What is a politically restricted post?
13 out of 15 students answered this question with an average mark of 4.77. A good answer should have stated that certain posts are ‘politically restricted’, which means that individuals who hold them are effectively prevented from having any active political role either in or outside the workplace. This not only debars post holders from holding or standing for elected office but also prevents them from participating in political activities, publicly expressing support for a political party or undertaking other activities such as canvassing on behalf of a person who seeks to be a candidate; and speaking to the public at large or publishing any written or artistic work that could give the impression that they are advocating support for a political party. These restrictions aim to prevent politics coming into play where an employee is in a politically influential position. This could be where an employee implements the authority’s policies, gives advice to, or speaks on behalf of, the authority.
15. What are the main roles of a councillor?
12 out of 15 students answered this question with an average mark of 4.83. A good answer should have stated that Councillors are typically elected as members of political parties or alternatively as independents. Councils may also co-opt unelected councillors to fill vacancies on the council where insufficient candidates have stood for election, although in practice this is rare outside parish councils. Once elected they are meant to represent all their constituents in the whole authority, and not just those who voted for them or just those in the district or ward they were elected in. They are bound by a code of conduct enforced by standards boards.
SECTION B – answer ONE out of TWO questions
16. It is claimed that fraud in revenues services now costs taxpayers over £19 million a year. Write a report explaining what steps are being taken to detect and prevent fraud.
9 out of 15 students answered this question with an average mark of 37.67. A good answer should have stated in a report format giving a general overview of fraud. Eg types, amounts, NFA, NFI. Steps to detect and prevent fraud - Steps currently taken eg signed declarations, annual review, letter to taxpayer, system checks, signed application. Risk Based Checking. Joint Procurement. Examples of proactive working eg partnership including with others, sharing cost and reward, risk assessment, data matching, managed service, finders fee only. Legal remedies – eg imposition of penalties, prosecution, cautions, admin penalties. Fraud with initiatives such as Protecting the Public Purse is an essential part of the syllabus and should be covered by students.
17. You have been asked to review the award of Empty Property Rate Relief following an increase in rates avoidance from Non Domestic Rates in your authority’s area. What steps would you take to ensure that the awards are correctly made?
5 out of 15 students answered this question with an average mark of 28.4. A good answer should have statedtypes of fraud such as Repeated short periods of occupation - of six weeks or slightly more, resulting in a further period of empty property rates, Occupation of vacant properties, for example retail warehouses or shops, by charities. The ratepayer of a vacant property being a charity and it is proposed that when next in use the property will be wholly or mainly used for charitable purposes, The letting of a vacant property to ‘off the shelf’ companies which then immediately enter into a members’ voluntary liquidation with the liquidator then ‘exempt’ from empty property rates indefinitely, Appealing the rateable value or rating list entry of an empty property following the removal of services or deliberately damaging a property, Claiming exemption from empty rates on the basis that occupation is prohibited by law following the disturbance of asbestos or other contaminants which may result in a local authority issuing a notice prohibiting occupation, Short term leases and/or long term leases brought to an end before expiry date.The answer should also have included steps to tackle this avoidance such as administration in place, inspections, joint visits, photos, sharing of best practice.Fraud with initiatives such as Protecting the Public Purse is an essential part of the syllabus and should be covered by students.
SECTION C– answer FOUR out of SEVEN questions
18.A complaint has been received about the fees charged by enforcement agents representing your organisation. Draft a letter responding in line with your organisations complaints procedure.
9 out of 15 students answered this question with an average mark of 32.56. A good answer should have stateddetails of the Steps you will take with the enforcement agent to deal with the complaint – discuss with them about the fees, talk, retrain issues, discipline, investigate, action to take.In the answer you will also need to outline details of the Councils complaints process – different stages. Who responds at each stage. Timeframe. Include complaint to ombudsman.
19. In the current round of budget cuts and austerity he Council is considering the closure of the authority’s Cash Offices. As the Revenues Team Leader draft a briefing note outlining the issues to consider before closing the Cash Offices and what alternative methods of payment should be offered to taxpayers, clearly stating the factors that need to be considered before introducing such alternative methods. Draft the briefing note.
12 out of 15 students answered this question with an average mark of 37.25. A good answer should have stated issues for closing cash office eg cost savings, staff, customer and union consultation, less security, accommodation savings, redeploying staff, impact on vulnerable customers.Alternative methods of paying eg cash/card payment machines, direct debits, payment at post offices, online payments.This is a topical question in today’s financial environment particularly with the cost including security of providing a cash office.
20. Your Authority has received an increasing number of Freedom of Information requests. A number concern the Revenues Service. Outline the key points when dealing with any Freedom of Information requests.
6 out of 15 students answered this question with an average mark of 17.67. A good answer should have stated that the Right to Know under Freedom of Information allows you to do two things:-
-To ask any public organisation covered by the Act what information it has on any subject you specify.
-If the organisation has the information, to be given copies.
-Providing the information is not legally exempt from disclosure the organisation must tell you what it has and give it to the person(s) requesting it within 20 working days. In many cases, even if it withholds the information, it at least has to tell you what it has.
Your request has to be in written form, but email will do. You don’t have to give your real name, only a contact address. You do not have to explain why you want the information and they have no right to ask you. These rights apply to everyone, not just UK citizens.
The FOIA also strengthens your rights under the Data Protection Act. Access to electronic personal data and also now to ‘unstructured personal data’ held by public authorities, which could include, for example, notes and memos (eg handwritten documents).