Agenda item

This report advises Members of progress in delivering the approved 2013/14 work programme and presents outcomes completed since the last meeting of the Audit Committee.

Discussion:

The Audit Services Manager introduced this report, which provided an overview of the 2013/2014 internal audit work programme, together with details of audit outcomes completed since the last Audit Committee Meeting.

The Committee was advised that following recent changes to Disclosure and Barring (DBS) legislation, the Council’s Disclosure and Barring Policy had been revised and was due to be published shortly and that service specific guidance for Foster Care staff had been updated and checked with the British Association for Adoption and Fostering. The Audit Services Manager referred to the overall audit opinion that the DBS and DPA arrangements for foster care, and the wider arrangements within Children and Adults, needed strengthening and highlighted the update provided in the report on management progress with the six significant recommendations relating to data protection compliance.

Members were updated as to progress with the Council’s three-year programme of reviewing financial management in Medway’s schools. This review was being undertaken via a series of probity reviews and, subject to unforeseen circumstances, would be completed by July 2015/2016. It was noted that despite some improvements, particularly around financial awareness, the majority of schools were yet to be visited and, based on the evidence to date, the overall opinion on financial control in Medway schools was that it still needed strengthening. Members were advised that Internal Audit was currently liaising with Governor Services and Education Finance, in relation to governance and financial management training for governors.

Members considered the key issues identified during the 2013/2014 probity review programme and stressed the importance of sharing this information with Governing Bodies and Headteachers, to help them consider the effectiveness of financial management within their schools. Members considered the need for an innovative portfolio of measures to raise awareness amongst all governors as to the issue and their responsibilities. Measures to promote best practice amongst all Medway schools should include: a summary document highlighting the emerging issues and lessons learnt to facilitate their own review of financial controls and appropriate training accessible for both governors and Headteachers that would include the use of alternative formats, such as the internet.

During the discussion, the Committee noted the success of Medway Action for Families, the local multi-agency delivery model of the national Troubled Families Programme, and officers advised that the audit opinion (that the current management arrangements needed strengthening) should be considered in the context of a clear multi-agency commitment to delivering a successful outcome with long term benefits. Members considered the complexities associated with the scheme’s financial framework, a results-based funding scheme, and it was noted that reviews had been undertaken on two ‘payments by results’ claims. These had highlighted data issues to be addressed as part of the audit action plan. It was further noted that issues surrounding the criteria would need to be resolved nationally.

Members were also referred to the two follow-up audits included in the report (Local Bank Accounts in Schools and IWorld System Access Controls) and it was highlighted that in both audits the audit opinion had been raised from insufficient to satisfactory.

Decision:

(a)               The Audit Committee noted progress on the 2013/2014 audit programme, including the three additional audits and the proposed deferment of one audit, and the outcome of Internal Audit’s work.

(b)               The Audit Committee requested an update on the implementation of the four material recommendations arising from the Highways Maintenance audit.

(c)               The Audit Committee requested that officers take forward the measures identified to promote best practice amongst all Medway schools. This should include: a summary document highlighting the emerging issues and lessons learnt to facilitate their own review of financial controls and appropriate training accessible for both governors and Headteachers that would include the use of alternative formats, such as the internet.