Agenda item

That the report be accepted.

The Interim Internal Audit Manager presented the update on progress of the Internal Audit department including changes to the audit plan, action tracking, performance indicators and investigations.

Following concerns raised at the previous meeting, senior officers were in attendance to share an overview of the actions and safeguards taken in response to the red review of care provider overpayments.  A reminder was given of the key findings to the audit which had been undertaken at the request of Social Services.

The Chief Officer (Social Services) acknowledged the overpayment as a serious error mainly arising from (i) the arrangement of a care package without the necessary contracts and (ii) the systematic error in failing to update the care and support plan.  Whilst this was primarily an error on the part of the Council, the responsibility of the provider was also recognised.  An agreed plan with the provider to repay the full amount over five monthly instalments was on track for completion.  Internal Audit had worked with the team to put in place a range of safeguarding measures involving the checking of provider payments overseen by a panel, the completion of guidance on procedures and the verification of care plans.  The work of the Task & Finish Group - established to improve governance arrangements as a result of this issue - was progressing well and was due to conclude at the end of April 2017.  Until then, the Financial Assessment team would ensure that invoices were not processed for payment until details were cross-checked with the PARIS system.  An additional amount of £68K from the Health Board towards the cost in supporting the service user was being received in instalments and would be fully met by the end of the financial year.

The Senior Manager (Safeguarding & Commissioning) gave assurance on agreed actions implemented to strengthen procedures such as checks carried out by the Financial Assessment team, the rotation of officers to different roles to help identify issues and authorisation limits on invoices.

The Chief Executive was satisfied that actions on this individual case were progressing, without risk to the care provider, and that there was demonstrable evidence that the system controls were now in place.

Councillor Ian Dunbar spoke about the significance of the overpayment to the single provider.  The Chief Executive reaffirmed that this was an error and not a case of any fraudulent behaviour.  The quality of services of the care provider was not in question and repayment terms had been agreed and were in place.  Speaking in agreement, the Chief Officer (Social Services) said that the Contract Monitoring team had confirmed there was no financial risk and that the safeguarding measures, along with any additional findings from the Task & Finish Group, would ensure correct use of the PARIS system.

Councillor Glyn Banks said that this matter did not detract from the excellent work of Social Services.  On the actions being implemented, the Senior Manager acknowledged the challenges within team capacity in reviewing other learning disability payments as a priority area and gave assurances that the significance of the overpayment was recognised by officers.

As further assurance, the Interim Internal Audit Manager advised that the audit plan for 2017/18 would include provision for a review of the controls on provider payments.

The Chief Officer (Governance) gave a summary of the key findings of the red review report on compliance with the Payment Card Industry Data Security Standard (PCIDSS), the method of processing credit card payments from residents.  Having become the nominated lead officer for PCIDSS, the Chief Officer would assume responsibility and have oversight of use the facility across all departments.  Good progress was being made on the actions with some already implemented, such as the establishment of a working group which had determined a low merchant level across the Council.

A third red review report on Greenfield Valley Heritage Park was dealt with under a separate agenda item.

RESOLVED:

That the report be accepted.