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.

Members were presented with an update on the progress of the internal audit work. 

It was noted that by July 2017 all audits would be completed.   It was confirmed that two audits were at fieldwork stage and draft reports for a further 5 audits were with managers for comment.

Members’ attention was drawn to the significant and partial assurance findings of the report which were:

·         Pre-paid cards (direct payments) – partial

·         Children missing education – partial

·         Looked after children  – partial

·         Concessionary fares – partial

·         Payroll - partial

Payroll

The head of HR and organisational development confirmed that all actions identified in previous and current audits were being undertaken.    It was confirmed that a new payroll structure had been in place since April 2017 and a new payroll manager would be in post from 22 May 2017.     It was noted that there were several reasons for overpayment of salary which included managers not notifying payroll in a timely manager.    Steps were being taken to ensure that manner were aware of their responsibilities.    

Children missing education (CME)

Following queries from members, the head of learning and achievement explained that the previous director for children’s wellbeing had commissioned the audit and that it was based on an audit sample of four schools.     The audit had been commissioned due to the high level of authorised absences recorded by schools.    It was noted that the schools were not using the absence code correctly and the directorate would be sending information to all schools and academies to clarify the use of the code correctly.  The audit had identified additional issues and an additional audit was being commissioned with a larger sample of schools.  

Looked after children (LAC)  

The head of looked children confirmed that the issues raised by the audit would be resolved by changing the way Mosaic (the children’s safeguarding case management system) is used.   It was anticipated that new processes would implemented in June 2017 and it should make it simpler for practitioners to use the system.   

In response to a query from a member, it was confirmed that the reason for the delay was that Mosaic was a complex computer program and a major upgrade to the system had taken place the previous year.  There had also been a need to consult with practitioners and then re-configure the system.    

Following a member’s query, the head of LAC explained that where there were audit recommendations which are dependent on other systems, the service would look at the level of risk, the issue of regulatory compliance and whether it is a requirement and the impact on children’s safety.   If the audit recommendation did impact on children’s safety, then other methods would be put in place.     

In response to a member’s question, the head of LAC confirmed that the number LAC had increased over the last 12 months.  It was noted that while the fostering service had increased the number of foster carers, there was still a gap and the service was reliant on independent fostering agencies and residential units.

Pre-paid cards (direct payments)

In response to a member’s query, the head of prevention and support confirmed that as soon as there was a possibility of data protection breaches, contact was made with the contractor.    It was confirmed that the system was now safe in terms of information governance.     

It was noted that the current provider had given notice to withdraw from the contract and that an officer decision would be taken to appoint a new provider from 1 July 2017 pending a procurement exercise.      

14:58 Cllr Williams left the meeting.

Concessionary fares

The passenger transport manager advised that the consultancy who administer the concessionary fares reimbursement scheme had been successfully  used since 2008 and carried out similar work for numerous other councils. However as a result of the audit we would also be introducing closer monitoring of the bus operators returns in-house.

RESOLVED

That the report be noted.