Agenda item

Report by the Director of Finance and Support Services, and the Head of Southern Internal Audit Partnership.

The Committee is asked to note the Internal Audit Progress Report.

45.1     The Committee considered a report by the Director of Finance and Support Services, and the Head of Southern Internal Audit Partnership (copy appended to the signed minutes).

45.2     The item began with attendance from Mr Poland, Head of Directly Provided Services, and Ms Fenn, Service Manager, to discuss Hammonds Residential Care Home.

45.3     Mr Poland began by explaining that the 2021 audit had shown 17 areas that required action; 13 were rated high, 3 medium and 1 low.  The service had taken responsibility of the actions and there were now only minor outstanding actions.  Work was ongoing with Capita to work back to 2016 to resolve all accounting issues.  It was confirmed that the accounting issues were not fraudulent. 

45.4     Ms Fenn, who had been the Service Manager for Hammonds since January 2022, confirmed that all transactions since 2016 were being looked through to understand all issues.  It was confirmed that correct procedures were now in place with no margins for error.

45.5     The Committee made comments including those that follow.

•      Queried if there were any County Council liabilities outstanding.  – Ms Fenn confirmed this was unlikely.

•      Asked if churn within Capita could impact other services.  – Mr Poland explained that these had been outposted roles with only a few hours a week.  Mr Poland believed that the issues would resolve in the longer term as staff would be in house.

•      Questioned if the same issues were likely to occur in other care homes.  – Mr Poland explained that this was a unique service that had experienced particular COVID-19 issues.  There had also been unique processes in place where audits had closed off accounts after each manager left the home.

•      Sought clarity over the audit account closure process.  Members of the Committee and the Cabinet Member for Finance and Property were strong in their view that management should take accountability for the effective maintenance of the clients’ accounts and would want assurance this is the case moving forward.  - Ms Fenn explained that it wasn’t generally an audit responsibility and that new processes would be installed to close down accounts appropriately.  The committee noted the new arrangements would be installed and requested that appropriate lessons were learned on correct procedures.

45.6     Mr Poland summarised by confirming that the issues discovered at Hammonds had been part of a wider thematic review, followed by a concentrated look at the particular issues.  Reassurance was given to the committee that the issues were not wider service concerns that would impact other care facilities.

45.7     Mr Pitman, Head of Southern Internal Audit Partnership, introduced the report which covering internal audit activity and the progress made against the internal audit plan.  Mr Pitman apologised that the report did not include risks and resolved to include in future reports and circulate current risks to committee members after the meeting.

45.8     The Committee made comments including those that follow.

•      Queried the actions relating to the limited assurance for P-Cards.  – Mr Pitman highlighted that the annexe gave an update on actions and reported that a new officer had taken responsibility for the actions.  Progress was being made and would be reported on at the next committee meeting.  Cllr Hunt, Cabinet Member for Finance and Property, resolved to raise the issues at a Cabinet meeting.  The Committee resolved to invite service officers to the next meeting of the committee if the issue was not resolved.

•      Sought clarity on the School Traded Services and the lack of strategy in place.  – Mr Pitman resolved to go back to the service and request details. 

45.9     Resolved – That the Committee notes the Internal Audit Progress Report and resolves to invite service officers to the next Committee meeting to discuss P-Cards if the issues are not resolved.