To update members on the progress of internal audit work and to bring to their attention any key internal control issues arising from work recently completed.

The Committee considered the progress on internal audit work and key internal control issues arising from work recently completed.

The Internal Audit Manager presented the report and highlighted pages 3, 4, and 5 of the report.

The significant findings and risks were presented highlighting two areas where partial or no assurance was found, these being agency staff and modern records.

With regard to modern records, this area was assessed as a partial risk. It was found that a very professional service was in evidence.  However, it was also noted that although detailed guidance and procedures were in place, it appeared that on occasion these were not followed.   

The one significant service finding identified was that there is no future strategic plan for the Modern Records unit (MRU) in place. It was noted, as detailed in the report that a strategy is in the development stage.

In relation to Agency staff, this area was assessed as a partial risk.

The report shows that there were six significant findings identified, these were.

·         the contract underlying the use of agency workers does not demonstrate good governance.

·         the Service Level Agreement with Hoople has not been varied to take account of the contract novation form the provider in March 2015.

·         there is no mechanism to identify contract that have not been signed after the procurement process has ended.

·         there is a back log of unapproved expense claims.

·         the draft contract has a service standard that 100% of agency staff should have two independent references, however sampling evidence gaps in employment history with three workers not showing evidence of references. It was noted that robust pre-employment screening checks will be addressed in new contractual arrangements.

·         leaver’s forms are not detailed and discrepancies between different systems indicate data quality concerns.

In the ensuing discussion the principal points were raised;

 A member, although pleased that issues had been highlighted and that the management updates contained in the report demonstrated recognition of the issues had some reservation as to whether improvements would be made.

Service level agreements (SLA) should be live documents and be periodically reviewed to ensure they are fit for purpose.

It was noted that the current contact with Hoople expires in March 2016 and that it would be prudent to review SLA’s before the formulation of new contracts.

Legal and contract teams should be adequately resourced with the capabilities to manage responsibilities.

Concern was expressed regarding unexplained gaps in employment history and that relevant procedures should reviewed and addressed as necessary.

It was clarified that employment issues highlighted were pertaining to agency staff and it was noted that actions had been accepted with a target date for implementation given as 31 March 2016.

Concern was expressed by members that although it has been reported that this is an agency staff issue it does give not members confidence that other areas might have similar issues.

Concern was raised regarding the progress of scheduled audits with confirmation that extra resources had been secured in the last quarter of this financial year and the expectation is that 90% of scheduled audits to either have been completed or in progress by the end of this 2015/16.

RESOLVED

That: a progress report is given at the March meeting

Feedback is delivered at the March meeting on contract management and the delivery process on the audit plan.

That a report be presented on the management of contracts and procurement within the authority on completion of the six contract reviews.

Point five and six of the significant findings contained in the agency staff report to the committee be referred to the children’s wellbeing performance review  for comment and action  with feedback to be delivered at the March Meeting.