Mr Steven Tinkler, Interim Head of Audit and Risk Management introduced this report stating the report provided an update on the progress 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.

In response to questions from Members about the report, the following was noted:

·         Members made several suggestions as to the areas of fraud it would like the counter-fraud team to examine. Mr Tinkler said he would take on board the suggestions of proceeds from crime and planning enforcements.

·         In respect to Blue Badge fraud, Members enquired if the counter-fraud team were expecting to hit their targets. Mr Tony Qayum, Corporate Anti-Fraud Manager confirmed his team would be exceeding the target. He said the council was benchmarked against other London Boroughs and Tower Hamlets was a high performing borough. They had concentrated efforts around the Royal London Hospital and had increased the number of prosecutions undertaken.

·         Members enquired if ‘Right to buy’ fraud, such as money laundering was pursued by the team. Mr Qayum stated this was part of Tower Hamlets Homes ‘right to buy’ processes – they are required to check each applicant’s application and to safeguard the interest of the public purse, by knowing where the deposit/ money is coming from.

Members of the Committee also heard from each Service Area Director where a limited assurance had been given:

Attendance Management including Annual Leave

Amanda Harcus, Divisional Director for Human Resources stated steady progress had been made in short and long term absence. Ms Harcus said investment had been made into a new system called “1^st Call” where staff will be able to speak to a nurse, when they call in sick. The traction period in the number of days taken sick will not be immediate as the new system will need time to bed in. Ms Harcus said the sickness policy is under review and long and short term sickness needs to be treated differently.

Staff Declaration of Interests – Follow up audit

Amanda Harcus, Divisional Director for Human Resources said the HR system to capture staff declarations had been automated and the response rate was 83%. She said staff should complete a declaration annually however as there were two different systems in place the HR team were in the process of procuring a new system. It will take 9 months for the systems to align so at present the capture of data is a mixed bag.

Members asked if the sample testing was a paper exercise, Page 53, bullet point 4. Ms Harcus stated that the Addeco system would flag up incomplete Declarations and it was for line managers to chase their staff members.

Disclosure and Barring Service (DBS) – 2^nd follow up Audit

Ms Amanda Harcus, informed members the code of conduct policy was under review and clear guidance will be provided to managers about which posts require DBS checks and those that do not. This would help to streamline the process. Ms Harcus assured members that a risk assessment of a new member of staff was in place and that no new member of staff would start work, without a DBS check in place.

Management of Care Plans for Vulnerable Adults

Mr David Jones, Interim Divisional Director for Adult Social Care stated that the processes and forms as per the Care Act had been reviewed. He had introduced a more person-centred approach to Care Plans which was introduced approximately one month ago. Mr Jones stated that under the legislation care plan assessments are not required for everyone. It was more risk based. The database systems Frameworki and Mosaic had been merged and although there were a few backlogs, the number of cases outstanding had reduced.

In response to questions from Members, Mr Jones assured Members that whilst radical changes had been made to the service, the service would now focus on the customer journey and provide support to vulnerable adults in a more holistic way.

Contract Monitoring of Domiciliary Care Contracts

Mr Keith Burns, Programme Director Special Projects stated that over the last three months the documentation for Domiciliary Care Contracts had been reviewed and the correct documentation was now in place.

He assured Members the contract with Homecare Ltd had been terminated and that his team was working alongside the contract management and legal teams to ensure the documentation was correct.

Members asked who would be monitoring the documentation. Mr Burns replied they had a risk-based approach and visit every provider quarterly. He said about 2000 visits to service users homes were undertaken and that this was unique to Tower Hamlets.

In response to questions about Allied Care, Mr Burns said Tower Hamlets itself did not have a contract with this organisation, although it did provide a market oversight and a contingency plan was in place, as the organisation had its offices within the borough.

Monitoring of Waste Collection and Street Cleansing Contract

Mr Robin Payne, Interim Divisional Director for Public Realm said following the audit in May 2018, the Waste Management Strategy had been reviewed in August 2018. He said consultation had taken place and the Waste strategy would be implemented at the beginning of 2019. Mr Payne said adequate monitoring and reviewing of the contract were in place.

Back records of the contract with Veolia, was being audited in order to establish the details of the initial contract and the council’s expectations of them. Mr Payne said front line staff lacked knowledge however the Council was working with Veolia to prioritise this. A growth bid had been made following the concern of the lack of resources. The service would move back in-house in 2020.

Mr Payne said that the number of complaints in relation to waste collection had risen from 60 per month to 130 per month over the last three months. There is an extensive list of risks, to be considered when the service is bought back in-house, however he is confident his team is sufficiently prepared for this.

Members expressed concern about the Waste Collection and Street Cleansing contract and it was observed that when senior managers leave, or are appointed on an interim basis, the knowledge also leaves. Members stated that it was vital documentation is up to date.

Creditors Systems Audit

Neville Murton, Acting Corporate Director for Resources updated Members with regard to the Creditors System. He said this was a highly devolved area and whilst the majority of invoices are paid on time there are some that are paid late. Mr Murton said the consolidation of the function into the Business support hub would help to improve the processing of invoices. Mr Murton stated it was important to ensure staff operated to the standards set out in the procedures and protocols. A new system was being tested to avoid duplicate invoices and to allow for earlier payment of invoices.

Members enquired what it meant that 9 out of 10 staff leavers were not removed promptly. Mr Murton explained that ex-members of staff should not have access to systems once they leave the council and this needed to be achieved a lot more quickly on the Agresso system.

Members also enquired why 6 out of 20 invoices were not paid by the due date. Mr Murton said these could be for a number of reasons such as there being an issue or query and left as pending. Mr Murton said this was poor practice rather than anything else.

Members of the Committee NOTED

1.    The contents of the report and took into account the assurance opinion assigned to the systems reviewed during the period.