Chief Executive statement on the Failure to Prevent Fraud offence

On 1^st September 2025 a new fraud offence came into force. This is a corporate offence of ‘failure to prevent fraud’, which is part of the Economic Crime and Corporate Transparency Act 2023.

Under the “failure to prevent fraud” offence, organisations may be held criminally liable when a person associated with the organisation (for example an employee, volunteer, contractor, agent or subsidiary) commits a specified fraud offence for the benefit of the organisation, and the organisation did not have reasonable procedures in place to prevent that fraud.

The Trust Standing Financial Instructions outline the responsibilities to prevent, detect and report fraud, bribery and corruption.

• Both myself as Trust Chief Executive and the Chief Finance Officer have responsibility to monitor and ensure compliance with NHS requirements on fraud and corruption.
• The Chief Finance Officer will ensure that action is taken to counter fraud and corruption.
• In cases of fraud and corruption or of anomalies which may indicate fraud or corruption, the Chief Finance Officer will inform the Local Counter Fraud Specialist (LCFS) in accordance with Secretary of State for Health and Social Care’s Directions.
• Where a criminal offence is suspected, the Chief Finance Officer will inform the police.
• The Audit and Assurance Committee reviews and approves the Counter Fraud, Bribery and Corruption policy as well as monitoring Counter Fraud reports in relation to suspected fraud.

Derbyshire Community Health Service NHS FT has in place, and will maintain, procedures which we believe to be reasonable and proportionate in preventing fraud. Specifically:

1. Leadership & culture
   We are committed to fostering a culture of honesty and transparency. I, the members of the Board and the Senior Leadership Team endorse the principle that any suspected fraudulent or dishonest behaviour should be reported, investigated and addressed appropriately.
2. Risk assessment
   We undertake regular assessments of the fraud risk profile facing the Trust. This includes considering where and how fraudulent activity might arise within our operations, including the supply chain, agency arrangements and other partnerships. These assessments are reviewed and updated periodically; our Audit & Assurance Committee has responsibility to review, monitor and ensure that the organisation has adequate arrangements in place for both preventing and countering fraud and will review the outcomes of counter fraud reports.
3. Prevention procedures
   We have implemented proportionate, risk-based procedures designed to prevent fraud. These include, but are not limited to, due diligence checks, financial controls, procurement oversight, contract monitoring, segregation of duties, clear scheme of delegations, and a whistle-blowing mechanism. Where appropriate, we provide fraud-awareness training to our staff, contractors and partners.
4. Communication and training
   We communicate clearly to all staff and partners that fraud is unacceptable and that we expect conduct in line with the Trust’s values and standards of behaviour. We provide guidance, policies and training to support staff in identifying and reporting concerns.
5. Monitoring, review and continuous improvement
   We monitor our procedures and controls to ensure they remain effective and relevant. Where weaknesses or control gaps are identified, we act promptly to remediate them. We review our policy and governance framework to ensure alignment with evolving risks and external guidance.
6. Whistle-blowing & speaking up
   We have in place mechanisms for staff, contractors, agency workers and others to raise concerns without fear of reprisal. We encourage openness and will treat as a priority any reports suggesting potential fraud or misconduct, investigating them thoroughly and impartially.
7. Governance and accountability
   The Trust Board receives assurance on fraud risk, prevention activity and control effectiveness. All Board members have been trained in relation to the failure to prevent fraud legislation and I, as Chief Executive, take ultimate responsibility for the arrangements and for embedding the anti-fraud culture within the organisation.

I believe the procedures set out above reflect our commitment to acting ethically, lawfully and in the best interests of patients, staff, public funds and the public we serve. We will continue to review and refine our approach to ensure that we remain vigilant and compliant with the requirements of the Act and the associated guidance.