Agenda item
Internal Audit and Anti-Fraud Progress Report
- Meeting of Audit Committee, Thursday, 11th April, 2019 6.30 p.m. (Item 5.1)
- View the background to item 5.1
Minutes:
Mr Steven Tinkler, Interim Head of Audit and Risk Management, introduced this report stating that the report provided an update on the progress made against the delivery of the 2018-19 Annual Audit Plan, as well as the current counter fraud performance and audits which have received limited assurance ratings.
Mr Tinkler referred Members to paragraph 4.7 in the report and highlighted BDO, the external audit partner, had completed 13 school audits. In addition he stated PricewaterhouseCoopers had completed a one-off review looking at Tower Hamlets Homes move to Boatmans house.
Paragraphs 5.1 to 5.4 highlighted the work for the counter-fraud team and the successes they had achieved.
In response to questions from Members the following was noted:
· The number of properties recovered under Social Housing Fraud is 54, two more than the previous year. A higher target has been set for the following year. Data sharing within the organisation and other authorities has resulted in a higher number of referrals. Mr Qayum informed Members Tower Hamlets had a high rate of performance in this area. Referrals are triaged and where evidence is found the anti-fraud team investigates further.
· In response to if the Anti-fraud team had sufficient resources to investigate fraud and its timeliness, Steven Tinkler informed Members the investigation timeframe was being looked at. A new case management system was being procured which would allow the team to provide targeted information and performance reports. Mr Qayum informed Members the Council had a dedicated resource of 2FTE to investigate blue badge fraud, which many other local authorities did not.
· Mr Tinkler added that the Blue Badge replacement scheme will mean more people will qualify for a Blue Badge and the outcome of 175 badges seized is the best figure the team had achieved in some years. Tower Hamlets had a zero tolerance policy in relation to Blue Badge fraud.
· In relation to the 60 residents’ permits that were cancelled, Mr Qayum explained these were due to people mis-using permits when they do not live in Tower Hamlets.
· Regarding the issue of stolen Blue Badges, Mr Qayum explained a new ‘white badge’ scheme would be introduced and that discussion was taking place with Parking Enforcement on what this would entail.
· Members congratulated the Anti-Fraud team on the successes they had achieved.
Control and Monitoring of Purchase Cards – Follow Up Audit
Mr Steven Tinkler provided the Committee with an update on behalf of Mr Kevin Bartle who had given his apologies for the meeting.
Mr Tinkler stated the issue with Purchase Cards was due to the lack of organisational discipline which had led to a potential abuse of credit cards. Over time the number of people with access to Purchase Cards had been reduced and the compliance/control function has been absorbed within the procurement team. Mr Tinkler said there would be an improvement in this area and the risk of fraud was low.
In response to questions from Members the following was noted:
· The Purchase Cards had a limit of £500.
· The situation with Purchase Cards was particularly bad about two years ago when the audit of Youth Services showed the abuse of credit cards and the lack of control within the department.
· There will be a follow up audit in six months of this report.
Special Education Needs and Disability (SEND) – Follow Up Audit
Christine McInnes, Service Head for Education and Partnerships stated she welcomed the internal audit report and the recommendations therein. She said the two high priority recommendations had not been implemented due to issues with the migration and testing of the new IT system. She explained the SEND service had undergone a restructure and the budget was stretched. Staff were focussing on increasing the KPI for Education and Health Care Plans. The Council had a low performance rate of 28% when the national average was 65%.
Ms McInnes stated the priority was to improve performance. New procedures and systems had been put in place to ensure the timely completion of the Care Plans. She said her team would continue to implement the recommendations of the audit report.
In response to questions from Members the following was noted:
· The SEND team dealt with approximately 400 assessment requests, with 320 new plans issued in 2018.
· There are 2,900 live plans on the system.
· The migration of data to the IT system had proved challenging however staff training in using the new system is ongoing.
The Chair thanked Ms Christine McInnes and Mr John O’Shea for attending the meeting.
The Committee RESOLVED to:
1. NOTE the contents of the report and took into account the assurance opinion assigned to the systems reviewed during the period.
Supporting documents: