Agenda item

To receive a verbal update report on the progress with the Action Plan included in the Internal Audit report on Financial Payments to Care Leavers.     (A copy of the report presented to the Committee on the 5^th November, 2014 has been enclosed).

The Committee received a verbal report from the Head of Children and Family Services (HCFS) on the progress with the Action Plan included in the Internal Audit report on Financial Payments to Care Leavers.  The report presented to the Committee in November, 2014 had been circulated with the papers for the meeting.

The Chair referred to the views expressed at the previous meeting that the headline action, that a meeting had not been held between the Head of Revenues and Benefits (HRBSM) and the Service Manager - Looked After Children (SMLAC), had a detrimental impact on some of the other identified actions.  The Committee had agreed that the HRB and the SMLAC be invited to attend the December, 2014 meeting to explain the lack of progress and provide assurance that the Action Plan was now being progressed. 

The HCFS explained that having liaised further with Internal Audit it had been identified that the appropriate link was with Procurement Services rather than Revenues and Benefits.  Three main aspects of concern related to:-

·                 The importance of ensuring that there was a robust system to address the management of the large amounts of cash handled at Brighton Road, Rhyl.

·                 The Service, as a result of Government and Court decisions, were acting as a benefits agency and the need had arisen to examine how to effectively perform this function, and address other associated issues and dimensions.

·                 The Council’s role as the corporate parent to service users, and the need to examine the implementation and operation of systems suitable for both the Council and service users.

It was explained that the internal audit process had been established to provide a steer and guidance in the development of an Action Plan.  It was confirmed progress had been achieved and the following issues were highlighted:-

-                  Difficulties arising when service users were unable to manage their respective finances.

-                  The need to strike a balance between managing the process as a benefits agency and corporate parent, to ensure service users utilise their finances over a given period of time.

-                  There having been very little adverse effect on service users.  The processes utilised had ensured that the requirements and needs of service users had been addressed.

-                  The need to ensure that issues relating to the management of cash did not have an adverse effect on service users.  Details pertaining to the management of cash flow, and the examination of new payment models, were summarised.

The HRBSM provided the following information with regard to the Revenues and Benefits service aspect:-

-                  Increase in the level of demand for cash and the safeguards instigated.

-                An acknowledgement that the Children’s Services Team were ensuring that the needs of the service users were being met.

-                A suggestion to instigate a reduction in cash payments where possible, to reduce the possibility of fraud and abuse.

-                The need to examine procurement activity, the inclusion of the provision of bus passes, charitable organisations and other third sector engagement.

-                  The importance of ensuring a robust set of procedures and processes were in place for the distribution of cash.

-                  Confirmation provided that cash was not supplied for the acquisition of white goods.

In response to a question from the Chair regarding the provision of financial management training, the SMLAC referred to the money management programme delivered by Barnardos Children’s Charity.  She also outlined the process instigated to address the actions highlighted which included discussions with the Senior Procurement Officer in respect of white goods, pre-payment cards and travel tickets and passes.

The SMLAC provided a detail summary of the progress achieved with regard to Risk Issues 1, 2 and 3 detailed in the Action Plan.  The CA explained that there was no perfect solution available and the action taken was that realistically available.  The HIA agreed that an information progress report be presented to the March, 2015 meeting of the Committee.

Following further discussion, it was:-

RESOLVED – that Corporate Governance Committee:-

(a)            receives and notes the actions in the report, and

(b)            requests that an information update report be presented by the Head of Internal Audit to the March, 2015 meeting of the Committee.

     (IB to Action)