The Director of Finance will submit Document “F” which reviews the service Internal Audit has provided to the Council during the financial year 2018/19.

Recommended-

That the work carried out by Internal Audit during 2018/19 be recognised and supported.

                                                (Mark St Romaine – 01274 432888)

The Director of Finance submitted Document “F” which reviewed the service Internal Audit had provided to the Council during the financial year 2018/19.

The purpose of the report was to inform members of the Committee about the service Internal Audit had provided to the Council during the financial year 2018/19.

In particular Members were advised of the following:-

·         Internal Audit completed 93% of the 2018/19 audit plan which, was above the target of 90%.

·         Internal Audit’s Client satisfaction identified that 98% of the respondents said that the “recommendations were useful and realistic” and believed that the audit was “of benefit to management.”

·         100% of all high priority recommendations made from the work undertaken were accepted by management.  

It was reported that significant progress had been made in relation to the Internal Audit Peer Review which was highlighted in the actions taken in the Internal Audit Quality Assurance Improvement Plan (Appendix “C” to Document “F”).

Members were informed that on going concerns included computer audits; no computer audits were performed in 2018/19; the service did not have a specialised computer auditor following the cessation, in October 2017, of the joint working arrangement with Wakefield Council.  The lack of computer audit coverage and assurance in 2018/19 represented a risk exposure for the Council, which was being addressed in 2019/20, where Salford Council, who provide Computer Audit Services for a number of Councils and organisations in the North West, would be completing an Audit Needs assessment of Bradford’s ICT functionality.  Once this had been completed a decision would be made how to fulfil this requirement in 2019/20.  Salford Council had indicated they would be willing to provide Computer Audit Services for Bradford Council on a Service Level agreement or contractual basis.

Members were informed that the other significant concern related to the two follow up audits of Direct Payments reported in April 2018 and March 2019 as both gave an ineffective opinion. The March 2019 report acknowledged that some progress had occurred but repeated the same concerns and recommendations made in the April 2018 report for management to action as implementation had been delayed until October 2019. As a consequence the safeguarding and fraud vulnerabilities reported in the direct payments system had not yet been resolved and there was increased exposure to these risks since they were first reported to management in September 2016.   

In relation to the significant concerns relating to direct payments the Assistant Director, Commissioning reported that:

·         There were 1066 people in receipt of direct payments.

·         Good progress was being made with actions from the follow up report.

·         A new suspension and termination policy had been developed and was being embedded in practice.

·         A new manager was now in place and trajectories to bring the backlog of audits to completion was being developed.

·         A business case would be prepared if demand could not be met with current resources. Additional administrative support was now in place.

·         A proportionate risk based matrix to determine frequency of audit, from Wakefield authority was being used and benchmarking was being undertaken.

·         The Service needed to get to being 100% compliant with audit recommendations.

·         Social Work Reviewing Timetable was being aligned with the audit timetable.

·         There was an action plan in place to respond to the outstanding audit recommendations.

·         Further progress would be known be the end of September 2019.

·         Performance was being managed through DMT.

·         The safeguarding element was a priority; the focus was on Social Service and Direct Payment activity working together.

In response to a Member’s question it was reported that it was good practice for Direct Payment reviews to be undertaken annually and that vulnerable peoples needs were being met.

The Chair highlighted that the issue in relation to Direct Payments may have been considered by the Health and Social Care Overview and Scrutiny Committee but had not progressed and there continued to be delays in complying with the audit recommendations. He asked that as this was an operational matter had CMT been informed of the issues and had any actions been suggested?

In response it was reported that CMT received Internal Audit reports and the half year monitoring reports. It was suggested that Direct Payments be escalated to it being included in the Councils Risk Register.

A Member suggested that CMT should receive a report solely on direct payments rather than the issue being part of another report.

Members were informed that feedback on this matter would be reported in the Annual Internal Audit Report.

Resolved-

(1)       That the work carried out by Internal Audit during     2018/19 be recognised and supported.

(2)       That the significant concerns relating to Direct Payments be included in the Councils Strategic Risk Register.

(3)       That a report solely on the significant concerns relating to Direct Payments be reported to the Corporate Management Team as soon as possible.

Action:          Strategic Director, Health and Wellbeing and Head of Internal Audit