Meeting documents

To consider a report by the South West Audit Partnership (SWAP) (attached).

The Committee considered a report by the South West Audit Partnership (SWAP) concerning the Internal Audit Annual Report 2017-18.

Members asked about the disagreement in ownership of the accepted risk in relation to ICT contract management and it was confirmed that contract managers were responsible for the management of contracts rather than procurement officers.  However, as part of the refresh of the Procurement Strategy and Policy, procurement and legal services staff had worked together to devise a contract management training programme.  This should be piloted in September 2018 in order to support managers and ensure that the contract management policy was effective and pursued value for money from contractual arrangements. Contract management arrangements were regularly reported to the Corporate Leadership Team and update reports could be brought to the Audit and Governance Committee if required.

The Chairman commented that once a service had been outsourced it would not be subject to the same savings targets as those services that remained under the Council's control.  This had an impact on the shape of the Council's own services and it would be useful to consider this aspect in future.

Members highlighted the failure to implement some of the high level recommendations as a cause for concern and it was explained that outstanding recommendations in relation to significant audit risks would always be reported back to the Committee until such time as they were implemented. The Committee could invite relevant officers to meetings to provide an account if necessary.

Members debated the future activity by the Committee to assist with the outstanding recommendations in relation to use and management of the High Needs Block, budget management within Children's Services and Section 17 payments made to safeguard and promote the welfare and upbringing of children in need. 

The Chairman stated that there was a need to know whether some of the elements contained in the budget assumptions were being delivered, such as the recruitment of foster carers, the recruitment of social workers and the Family Partnership Zones.  He suggested that the outcomes to be reported in the Children's Services Budget Management follow up report were considered by the Chairman, Vice-Chairman and Cllr Bryan to assess whether to arrange a further meeting of the Committee to specifically look at these areas. 

Members asked whether a contingency budget was set aside to account for unplanned events that had a high impact on the budget and the Chief Accountant advised that the Children's Services budget had already been based on high risk factors. However, there remained difficulties around high cost placements and reducing the numbers of Looked After Children (LAC).  The organisation had some general funding and an overall contingency budget of £2.9m, but there was no specific contingency budget for Children's Services.

Members also drew attention to how savings from the closure of the 2 children's homes would be used and were particularly interested in exploring how good outcomes for children were being achieved, including getting children out of care. 

Mindful of the crossover with the Safeguarding Overview and Scrutiny Committee, members noted that it would be important to link the work and involve the Chairman of this Committee in discussions.

In response to a question, the SWAP Assistant Director stated that the annual opinion of reasonable assurance that had been given was a positive message and that there was a fairly consistent split of Reasonable and Partial assurance audits when compared with other organisations.  The number of Partial assurance opinions given could potentially reflect that the internal audit activity was looking at the right areas of highest risk and concern.

Resolved

1.      That the Chairman, Vice-Chairman and Cllr Bryan consider the outcomes in the Children's Services Budget Management follow up report when available;

2.      That the Chairman, Vice-Chairman and Cllr Ray Bryan of the Audit and Governance Committee and the Chairman of the Safeguarding Overview and Scrutiny Committee meet with the Interim Director of Children's Services to discuss the position and undertake a scoping exercise.

3.      That the scoping exercise includes the scoping document for the Scrutiny Review of Looked after Children in foster or residential placements; and

4.      That, following discussion with the Interim Director of Children’s Services, a joint activity (informal or formal) of the Audit and Governance and Safeguarding Overview and Scrutiny Committees is arranged in early September 2018.

5.      That the Committee liaise with the Interim Director of Children's Services in relation to the risks accepted as part of the Section 17 payments review.