The Charity Commission, the regulator of charities in England and Wales, has published the findings of a study which has found that cultural factors, such as placing excessive trust or responsibility in individuals, or the lack of internal challenge and oversight, contributed to 70% of insider frauds within a sample of charities analysed by the Commission.

The Commission is therefore urging all charities to foster a culture where staff, trustees and volunteers are reminded of the need to challenge any concerning behaviour and not turn a blind eye when internal processes aren’t followed.

The findings follow a number of high profile cases of insider fraud in charities recently, including Birmingham Dogs Home, where the former chief-executive stole £900,000 from the charity. The head of finance at NSA Afan was jailed earlier this week for spending almost £54,000 of the charity’s money for her own personal gain.

Michelle Russell, Director of Investigations, Monitoring and Enforcement at the Charity Commission, said:

Today’s report has confirmed what we already suspected from our casework in this area. The crucial lesson for charities isn’t about introducing lengthy counter-fraud policies. It’s about changing people’s behaviours and encouraging staff and all those involved in charities to be vigilant and speak out when things don’t seem right. This must be demonstrated by everyone in an organisation to be truly effective.

The vast majority of charity workers do incredible work but, as we’ve seen in some troubling cases recently, sadly charities aren’t immune to fraud. A dangerous combination of a lack of accountability and controls not being consistently applied can make any charity – big or small – vulnerable, and create opportunities for fraudsters that will have devastating effects.

Everybody has a part to play in the fight against charity fraud to ensure the public’s generous donations reach those who need them most.

The Commission issued a 6 week long call for information to help charities better understand the risks and causes of insider fraud, and therefore how to better protect their valuable assets. The Commission received over 50 responses, with a third of responding charities having an income of over £1million. The study also identified that 19% of frauds reported to the authorities resulted in a prosecution, 38% recovered part or all of the money/assets taken, and 76% of the frauds prompted media coverage.

The Commission has published advice for charities on improving their resilience to fraud, as well as a number of anonymised case studies alongside the report. These demonstrate cases of poor or non-application of financial controls, low fraud awareness, and excessive trust or lack of challenge.

Previous analysis by the Commission found that a third of frauds committed at charities and reported to the Commission were suspected to have been committed by charity staff, trustees or volunteers.

Anyone who suspects fraud in a charity, should make a report to the police, the charity in question and to the Commission, via RSI@charitycommission.gsi.gov.uk.

Ends

Notes to editors

1. The Charity Commission is the independent regulator of charities in England and Wales. To find out more about our work, see the about us page on GOV.UK.
2. Search for charities on our check charity tool.

• More than 50 leading technology companies and organisations have contributed to the development of an AI deal worth almost £1 billion, including almost £300m of private sector investment into UK sector
• 1,000 new government funded AI PhDs will keep the UK at the forefront of innovation and build UK status as AI research hotspot
• Organisations in Wales actively embracing AI in what they do include IQE, MedaPhor, Amplyfi and Artimus

More than 50 leading businesses and organisations have contributed to the development of a £1 billion deal to put the nation at the forefront of the artificial intelligence industry, featuring almost £300 million of new private sector investment.

The deal between the UK Government and industry, announced by Business Secretary Greg Clark and Digital Secretary Matt Hancock today (Thursday 26 April 2018), also includes more than £300 million of newly allocated government funding for AI research to make the UK a global leader in this technology.

Building on the commitment made in the Industrial Strategy and its AI Grand Challenge, the deal marks the first phase of a major innovation-focused investment drive in AI which aims to help the UK seize the £232 billion opportunity AI offers the UK economy by 2030 (10 per cent of GDP).

The AI Sector Deal follows record levels of investments into UK tech in 2017 and today’s deal includes new investments such as: * Japanese venture capital firm Global Brain opening its first European HQ in the UK and investing £35 million in UK deep-tech start-ups * The University of Cambridge opening a new £10 million AI supercomputer and making its infrastructure available to businesses * Top-ranking Vancouver-based venture capital firm Chrysalix, is also going to establish a European HQ in the UK and use it to invest up to £110 million in AI and robotics * The Alan Turing Institute and Rolls-Royce will jointly-run research projects exploring: how data science can be applied at scale, the application of AI across supply chains, data-centric engineering and predictive maintenance, and the role of data analytics and AI in science.

Secretary of State for Wales Alun Cairns said:

Wales is already embracing the opportunities provided by artificial intelligence to revolutionise many different areas of work, including the medical and semiconductor sectors.

Today’s deal will mean even closer cooperation between UK Government and industry in Wales, creating jobs in new fields and building a stronger, more resilient economy.

Business and Energy Secretary Greg Clark said:

Artificial intelligence provides limitless opportunities to develop new, efficient and accessible products and services which transform the way we live and work. Today’s new deal with industry will ensure we have the right investment, infrastructure and highly-skilled workforce to establish the UK as a driving force in the development and commercial use of artificial intelligence technologies.

As with all innovation there is also the potential for misuse which puts the whole sector under scrutiny and undermines public confidence. That is why we are establishing a new world-leading body, to ensure the ethical use of data in AI applications for the benefit of all.

Developing AI Skills

The deal will help establish the UK as a research hotspot, with measures to ensure the innovators and tech entrepreneurs of tomorrow are based in the UK, with investment in the high-level post-graduate skills needed to capitalise on technology’s huge potential.

It includes money for training for 8,000 specialist computer science teachers, 1,000 government-funded AI PhDs by 2025 and a commitment to develop a prestigious global Turing Fellowship programme to attract and retain the best research talent in AI to the UK.

This will make sure every secondary school has a fully qualified computer science GCSE teacher to give the next generation the skills they need to develop and capitalise on future technology. As part of the deal, the accountancy firm Sage have also committed to delivering an AI pilot programme for 150 young people across the UK.

Regional Tech Hubs

The Government will build on its reputation as an international hub for AI innovation and provide £20 million of funding to help the UK’s service industries, including law and insurance, with new pilot projects to identify how AI can transform and enhance their operations.

£21 million will also be used to support uptake of AI through businesses by transforming Tech City UK, currently London based, into Tech Nation, creating a world-leading network of high growth regional tech hubs across the country.

World’s first Centre for Data Ethics

The deal highlights government work to ensure all AI developments in Britain are conducted to the highest ethical standards by establishing a world-leading Centre for Data Ethics and Innovation.

The £9 million Centre will be an important part of plans to make the UK the best place in the world for businesses developing AI to grow and thrive. It will address the challenges posed by the adoption of AI and advise on the measures needed to enable and ensure safe, ethical and innovative uses of data-driven technologies, while helping protect consumers.

Secretary of State for Digital, Culture, Media and Sport Matt Hancock said:

The UK must be at the forefront of emerging technologies, pushing boundaries and harnessing innovation to change people’s lives for the better.

Artificial Intelligence is at the centre of our plans to make the UK the best place in the world to start and grow a digital business. We have a great track record and are home to some of the world’s biggest names in AI like Deepmind, Swiftkey and Babylon, but there is so much more we can do.

By boosting AI skills and data driven technologies we will make sure that we continue to build a Britain that is shaping the future.

The new sector deal is the focal point of the government’s Artificial Intelligence Grand Challenge, a key part of the government’s modern Industrial Strategy which sets out a long-term plan to boost the productivity and earning power of people throughout the UK. The AI Grand Challenge aims to put the UK at the forefront of the AI and data revolution ensuring the vast social and economic benefits of this technology are felt in every corner of Britain.

The Industrial Strategy set out four Grand Challenges to put the UK at the forefront of the industries of the future. AI and Data is one of these and this sector deal provides the blueprint for delivery.

Dame Wendy Hall said:

It is very exciting to see the recommendations in the AI Review turned into reality through this bold and ambitious Sector Deal for AI. We are at a pivotal point in the application of AI across many different sectors of industry and I truly believe the U.K. can take a leadership role in developing the use of AI in industry in a safe and ethical way that will be of benefit to everyone.

The AI sector deal will make Britain the go to place for AI and make sure this technology is used as a force for good to benefit people, from government’s investment in early diagnostics and precision medicines projects that will use AI to help diagnose chronic illnesses, to a commitment to establishing Data Trusts between government, industry and academia to ensure data sharing is safe and secure.

To better understand the ethical and security implications of data sharing and privacy breaches, the Engineering and Physical Sciences Research Council (EPSRC) is investing £11 million in eleven new research projects, led by universities, to analyse the important challenges for people and businesses that use data and those that allow access to their data. They have also committed to make £300 million available in support for new research projects to complement the new Centres for Doctoral Training.

Neil Crockett, Chief Digital Officer, Rolls-Royce, said:

At Rolls-Royce, we believe that AI is central to unleashing huge value for our customers and from within our own business, and in achieving our goal of pioneering the power that matters.

This MoU signals an exciting new phase in Rolls-Royce’s relationship with The Alan Turing Institute. We believe this collaboration will further strengthen Rolls-Royce’s reputation as a world-leading adopter of AI technologies in an industrial context. At the same time, it will support the institute’s position, and thus the UK’s position, as a global centre of excellence for data science and AI.

AI in Wales

The AI sector deal will not only support new adopters of AI, it will help the Wales’ trailblazing companies who are already embracing this tech and using it to create clusters of expertise, high-skill jobs and investing in developing this technology.

Companies and bodies in Wales actively embracing AI in what they do include:

• IQE, a specialist in semiconductors, is investing £38m alongside Cardiff University to develop a new state-of-the-art facility that will manufacture components used in AI applications.

• MedaPhor, based within Cardiff University, develops advanced hi-fidelity ultrasound simulators, artificial intelligence image analysis software and augmented reality needle guidance systems for medical practitioners.

• Amplyfi is an artificial intelligence start-up that wants to transform the business intelligence industry. Its DataVoyant software platform harvests and reads data that is both publicly available online and from the deep web — the parts of the internet that are not indexed by standard search engines. The technology enables clients to spot potential disruptions to their businesses, whether a war, a market shift, or a new technology.

• Artimus in Cardiff provides artificial intelligence and machine learning solutions using expertise from a broad range of disciplines including engineering.

Additional quotes:

Nicholas Sleep, Chief Technology Officer of Medaphor Group in Cardiff said:

We’re trying to translate technology for the benefit of doctors. We use artificial intelligence to make ultrasound scanning easier for clinicians; making machines smarter to speed up scanning, and to aid clinicians in their decision making.

The Government is absolutely right to be prioritising this technology, and putting Britain at the forefront of applying this technology in the medical sector, where it will make a big difference in improving safety and reducing the cost of healthcare.

The Exchequer Secretary to the Treasury, Robert Jenrick said:

Artificial intelligence will enable us to work smarter, boost our productivity and make the country richer.

From search engines to self-driving cars, this technology will be at the heart of our new economy. That’s why we continue to back our AI innovators in order to cement the UK’s position as a world-leader in this cutting-edge technology.

Marc Waters, Managing Director (UK & Ireland), Hewlett Packard Enterprise said:

Artificial intelligence presents a significant opportunity to create competitive advantage for the UK economy with benefits for companies, workers and consumers.

The opportunity exists not only to harness the power of AI for innovation and scientific discovery but to improve productivity and provide economic growth.

However, many UK enterprises are still struggling to find viable use cases for their business and take tangible, near-term steps toward making these a reality. To help fill this gap, HPE is investing in and providing these organisations with the specialised AI expertise and supercomputing infrastructure needed to support AI applications.

Professor Michael Denham, Chief Executive and Co-Founder of Mindtrace Ltd said:

Just as computing technology has served us well by allowing us to make complex computations which are far beyond human capabilities, AI technology will increasingly support us in our ability to make complex and timely decisions, in healthcare, transportation, manufacturing, security, and many other areas, with super-human levels of accuracy, speed and efficiency, enhancing our lives in ways which we are only beginning to understand.

Antony Walker, deputy CEO, techUK said:

The UK has an impressive track-record on AI. But we must keep pace and scale of innovation continues to accelerate, we need to ensure that the UK stays at the forefront in the development and application of these powerful new technologies.

The Government’s AI Sector Deal provides a clear blueprint for how the UK can become a world-leader in innovative, responsible and ethical AI. The sector deal focuses on the key issues of maintaining leadership and driving uptake, building the skills pipeline and ethics. Success will depend upon AI companies being deeply engaged in the process.

Gerard Grech, CEO Tech Nation, said:

One of the biggest changes the UK faces over the next 10 years is technological and the development of Artificial Intelligence will be at the forefront of it. The UK needs to embrace it and shape it. As a recognised global centre of AI expertise with companies like DeepMind, Improbable and 5AI, the UK is in a great position, and by building strong networks of shared knowledge and expertise, we can make it even stronger.

Tech Nation cannot wait to get started on shaping its first programme for the UK’s fastest-growing AI companies next year, which will help those who have proven their potential to reach the next level.

Hugh Milward, Senior Director, Corporate External and Legal Affairs, Microsoft UK, said:

The UK is poised to do great things in the field of AI. If the Sector Deal can ensure that the development of AI is ethical, inclusive and responsible then the UK, as the home of the father of AI Alan Turing, will have a bright future as a world leading centre for AI.

Notes to editors:

• AI holds transformative implications for every aspect of our lives and every sector of the economy. The economic prize is clear: potentially adding 10% to UK GDP by 2030 if adoption is widespread (PWC), and a productivity boost of up to 30% (Bank of America).
• The Industrial Strategy, published in 2017 , following the independent review of AI in the UK in 2017, ‘Growing the Artificial Intelligence Industry in the UK’, commits to the Grand Challenge of putting the UK at the forefront of the AI and data revolution, helping sectors boost their productivity through new technologies, helping people develop the skills they need and leading the world in the safe, ethical use of data.
• The Sector Deal is the first major initiative under the grand challenge, that outlined proposals for how government could work with industry to stay ahead of the competition and grow the UK’s use of AI right across the economy in a safe and ethical way, for the benefit of all in society.
• The interim Centre for Data Ethics and Innovation will start work on key issues straight away and its findings will be used to inform the final design and work programme of the permanent Centre, which will be established on a statutory footing in due course. A public consultation on the permanent Centre will be launched soon.
• We are announcing new challenges where we will work with industry to develop innovative uses of AI and advanced analytic technologies through the£1.7 billion Industrial Strategy Challenge Fund. These include ‘Next-Generation Services’ , ‘Early Diagnostics and Precision Medicine’, and ‘Transforming Food Production’.

ENDS

The MAIB report on the collision between two Hong Kong registered vessels, Huayang Endeavour and Seafrontier, approximately 5 nautical miles to the west of Sandettie Bank in the Dover Strait on 1 July 2017, is now published. Both vessels sustained damage but the accident did not result in any injuries or pollution.

The report contains details of what happened and subsequent actions taken, read more.

Thank you Mr President. And may I start by thanking the Secretary-General, State-Secretary Neculaescu and Commissioner Chergui for their briefings. As I remember saying in Addis last September at the Security Council’s joint meeting with the African Union PSC, our relationship is vital, and we must continue to strengthen it if we are to have success, so it is particularly good to see you here, Commissioner Chergui.

The UK shares the briefers’ alarm at the scale and complexity of violent conflict today. The costs are mounting, whether we measure those in lost lives, displaced families, human rights violations, extreme poverty, or peacekeeping and humanitarian budgets. Our motivation to prevent further conflict and to sustain peace must be greater than ever. And I agree very much with the Secretary-General on the importance of human rights in this context, both of course as a warning or trigger of conflict, but not only that. We believe that activity at national and local level on human rights can be an important contribution in of itself to stability and conflict prevention.

The UK very much welcomes Secretary-General Guterres’ vision for peace building and sustaining peace, and particularly the renewed focus on conflict prevention set out in his report. We also fully endorse the understanding that supporting countries to sustain peace should be a shared priority across the whole UN system, from peace and security to developments and human rights. Many of our own ministries and governments have come to this conclusion. The UK government has decided that over half of our development spend will be in conflict and fragile states, as that is the greatest challenge in reducing poverty today. This does not, as some might be concerned, does not mean that the respective mandates of different parts of the United Nations are under threat. And in this regard, we welcome the fact that both the General Assembly and the Security Council will adopt resolutions committing to further implementation of the Sustaining Peace Vision agreed in 2016.

The UK has identified three priorities for future work.

First, we want to see a stronger partnership for peace developed between the United Nations and the World Bank. Their combined vision, expertise and global presence are essential to ensure that multilateral investments and development tackle the drivers of conflict.

Second, we want to see more effective preventive diplomacy by the United Nations. In particular, addressing underlying causes. We all know the critical role that political agreements play and the openings they create for peacebuilding. And I very much endorse the Secretary-General’s words on the importance of women’s participation in such negotiations. We know from the research done that peace negotiations are 35 percent more likely to be sustained for at least 15 years if women are involved in them.

And our third priority is ensuring smoother peacekeeping mission transitions from mission to non-mission settings, and I’ll say a few more words more about that in my intervention. Right from the moment that we decide to deploy peacekeepers, we should be thinking about their exit. While recognising that fragile contexts will always be prone to risk, we on the Security Council need a clear vision of what a sufficiently stable end state looks like. And the Secretariat has a key role to play in this through generating deeper analysis and a mission implementation plan with clear benchmarks towards achieving that end state. These steps should then focus resource and allow the Council to track progress. This is being tested at the moment of course in Haiti.

The UN development system needs to be stepping up sooner in Mission settings. We welcome the Secretary-General’s suggestion to link development assistance frameworks with Mission assessments. As the peacekeeping fund has sought to encourage Mali, peacekeepers and UN country teams need to work to the same script, the same deadlines and the same objectives. Funds, programs and agencies must be ready to tackle conflict rather than simply work round it. Mapping capabilities to do so, as was done in Liberia, should ensure we are all better prepared to fill gaps when a mission leaves.

Now the Secretary-General stressed the importance of enhancing coherence to support efforts by national governments. Not everything is up to the United Nations. National ownership, when politically inclusive, is what makes transition processes effective and resilient. We must always consider how missions handover to national institutions and actors. Côte d’Ivoire’s experience demonstrates the impact this can have when done well. I think the salutary lessons you put forward Minister were important for us all, in particular about ensuring that the UN does not take on the functions of government and prevent them from being able to carry out their own tasks.

The development of a shared peacebuilding plan could help pull the mission, the UN country team donors, the host government and other national stakeholders together through and beyond the transition. That the US, Sweden and Liberia work together so effectively to develop a peacebuilding plan demonstrates the valuable role the Peacebuilding Commission can have. And that’s why the UK has been one of the largest and longest standing donors to the Peacebuilding Fund.

And finally, we need to be creative about what the residual UN country team presence looks like. The creation of an enhanced Resident Coordinator’s office in Liberia is a very promising initiative, and it reflects the recognition in the Secretary-General’s report that the UN development system needs enhanced capacities to support countries at risk of conflict.

Transitions from Mission settings are just one dimension of what is a larger agenda for sustaining peace. But given that one of the most significant predictors of future conflicts is past conflicts, we must get them right. Daunting as solving the recurrent challenge of transitions may be, we do have good examples of innovative and effective action to draw on for our inspiration. Now with the Secretary-General’s reports on sustaining peace and peace building, we have a plan for making change happen. So there should be nothing, Mr President, stopping us in this Council from making change happen.