Agenda item

This report sets out the outcome of internal audit activity completed since the last meeting of the Audit Committee.

Discussion:

The Principal Auditor introduced this report on the outcome of completed internal audit activity.

It was reported that the audit definitions had been set so to improve managers’ understanding of them and that the audit report format was designed so to direct managers more clearly to the key risk areas. A clearer priority ranking system for audit recommendations had also been introduced.

Officers responded to Members’ questions on a number of audits. This included, for the Direct Debit Income audit, advising that the practice in Adult Social Care of not sending direct debit mandates to the bank until the first invoice had been received was historical and that rather than being a training issue officers had been instructed to ensure they are submitted promptly. In relation to the Leisure Memberships audit it was suggested that the public be made aware that all cash refunds over £10 would need management authorisation. The Director of Children and Adults explained the background as to the delayed implementation, arising from changes in senior management, of recommendations arising from the Parkland Resource Centre Unit audit.

To facilitate discussion the Committee agreed to move the exclusion of press and public for part of the consideration of this report, so to allow Members to comment on the exempt appendix accompanying agenda item 10 (Irregularity Report). In relation to this exempt appendix the Chief Finance Officer undertook to provide Members with a briefing note setting out further background to this matter.

The Transport Procurement Unit Manager tabled information in relation to the Transport Procurement audit. This set out the background to the Transport Procurement Unit, the work streams and a statistical overview; including details of the number of contracts currently running, the value of savings achieved through re-tendering and re-planning of routes on SEN transport contracts and the contracts inspection rate. In response to Members’ questions and concerns, the Transport Procurement Unit Manager acknowledged and welcomed the recommendations arising from the audit and gave details as to:

• the overpayment to a taxi company of approximately £30,000 which had lead to the audit
• the background and basis as to why the unit scored tenders using the ratio 65:35 (quality to price), in addition to the quality assessment as part of the Local Transport Framework. This had been designed as a pragmatic response to lesson learnt from earlier contract delivery
• details of the existing Local Transport Framework, that would end in September 2011, and the steps that would be taken to review the options for the continued provision of these service contracts such as the potential of extending the term of contracts
• the terms and conditions contained within new contracts, which would include 10 separate criteria for assessing quality
• the relationship with the Children and Adults Directorate in specifying and providing quality-assessed transport, which included discussions as to achieving efficiencies whilst safeguarding the needs of vulnerable individuals
• the monitoring/inspection regime for vehicles, passengers and routes and examples of action taken by the unit in response to poor performance.

The Director of Children and Adults also advised Members as to the changing context for the delivery of SEN services, including the increased use of personalised budgets.

In addition to checking lists of passengers and routes with the operator Members suggested that these lists also be checked with schools. Members also stressed the importance of high quality staff in the provision of services to vulnerable individuals and the Transport Procurement Unit Manager advised that, in addition to the 65:35 quality to price ratio, since 2008 all drivers and escorts were required to attend training provided by the Community Transport Association. Members were advised that follow up audit work would be undertaken within six months.

In relation to the Security of Confidential Records at Children and Adults Sites audit the Director of Children and Adults advised Members that the audit had sought assurances that handling confidential data was appropriate and consistent across all sites, that an archiving project was taking place at the time of the audit and that the importance of securing confidential data had been restated to staff. The Director undertook to advise the Committee as to the length of time that records were retained. Members were of the opinion that the findings of this review should be shared with relevant task groups of the Health and Adult Social Care and Children and Young People Overview and Scrutiny Committees.

Decision:

(a)                          The Audit Committee agreed to exclude the press and public for the consideration of the appendix accompanying item 10 (Irregularity Report) as it contained information relating to an individual and information relating to action taken or about to be taken in connection with the prevention, investigation or prosecution of crime under paragraphs 1 and 7 of part 1 of Schedule 12A of the Local Government Act 1972.

(b)                          The Audit Committee noted the outcome of Internal Audit's work.

(c)                           The Audit Committee agreed to refer the findings of the audit on the Security of Confidential Records at Children and Adults Sites to the Safeguarding Vulnerable Adults Task Group and the Child Protection Monitoring Group.

(d)                          The Audit Committee requested that the Chief Finance Officer provide Members with a briefing note setting out further background information on the investigation set out in the exempt appendix accompanying agenda item 10 (Irregularity Report).