The report of the Deputy Chief Executive and City Treasurer and the Head of Internal

Audit and Risk Management is enclosed.

The Committee considered the report of the Deputy Chief Executive and City Treasurer / Head of Internal Audit and Risk Management. The report provided the Committee with a summary of thework of the Internal Audit Section since

April 2020. The publication of quarter four 2019/20 executive summaries was delayed due to Covid19 and cancellation of Audit Committee meetings in April and June. The report included the executive summaries and assurance opinions from completed audits finalised between February 2020 and July 2020.

The Chair invited questions from the Committee.

A member referred to audits that had taken place within schools where it appeared that similar issues had been identified relating to financial procedures and policy. Officers were asked if guidance could be provided to schools and school governors to address the issues raised to improve school’s financial governance arrangements. The comment was also made that in view of the audits that had raised issues within areas of Council services there are also a number of the audits that had taken place on Council services which had produced many examples of good practice.

It was reported that following the completion of the audits in schools, a consolidated themed report is produced for the Director of One Education. A common themed report is also circulated to all of the schools in Manchester highlighting common themes and lessons learned. This process could be explored further with One Education to consider other routes to pass on guidance and support on financial governance for schools.   

A member asked officers why an updated position of the Audit Plan Status had not been included in the report in view of significant problems with audit completions. Officers were also asked to explain the proposed arrangements to resource the PPE hub and business grants beyond quarter two and if any resources had been provided from Central Government to fund this.

The Committee was informed that the report had been prepared in respect of audits taking place up to the end of July 2020, although some audits may have not been completed at that point. Some additional audit reports would be submitted to a later committee. With reference to the PPE hub, it was reported that three full-time audit staff posts had been provided to deal with PPE, this had been reduced to a half full-time post until the end of March 2021, at the latest. The staff member concerned had been kept in the half post to ensure a level of continuity is maintained and it was anticipated that the other half of the post would be filled. A more structured process was now in place to deal with PPE with additional staff resources to be provided for the PPE hub. The meeting was informed that resources had been brought in from across the council to help address the ongoing incident management and prepare for business as usual and recovery planning. It was important to properly resource such areas as business rates grants with audit staff to ensure guidelines are followed as well as spot instances of fraud. It was reported that £225,000 was received from the Government as part of a New Burdens payment.

A member referred to issues relating to the audit of schools and the issues arising from those in particular financial management guidance for schools and what the position for this is and the school’s development plan. Officers were asked what follow up action had been taken regarding hospitality and other issues.

It was reported that schools are provided with guidance and the findings from audits are made into formal recommendations to the schools and followed up by the auditors. School development planning is an area where the recommendation is that planning takes place three years ahead. Follow up actions on audits had been delayed due to Covid and closure of schools. Other follow up checks would be completed and reported. The issue of hospitality raised in an audit it was reported this would be checked and reported to the Committee. 

A member referred to concerns raised on the use and performance of Liquid Logic and the bedding in of the system. Officers were also asked to comment on the point raised within the report that suggested a ‘cultural norm’ in Adult Services by social workers’ approach to recording information and the concerns this raises for adult safeguarding. Members were concerned on the limited assurances given and the lack of progress being made by the service.

It was reported the audits had identified issues within adult services and children’s services such as changes in business practice following the introduction of Liquid Logic. Work is ongoing to address those issues concerning Liquid Logic involving the City Treasurer, Internal Audit and Children’s Services and Adult Services DMTs. The comment made on a ‘cultural norm’ had been identified as an historic challenge to install business change within the service and achieve compliance through training of social work staff. Further checks would be made to ensure compliance is being achieved. With reference to concerns raised on recording safeguarding issues it was reported that the changes made to case management on Liquid Logic that children’s services is a few weeks away from business of usual. Adult Services would take longer in view of the more complex nature of the care finance packages. The Director of Adult Services would be contacted on the issues raised and reported back to the Committee.

A member referred to Mental Health - Adults Services and concerns on lack of management input on decisions on mental health case work and the lack of management overview on those decisions and delays on referrals made. Reference was also made to the use of the Paris System and how it operated/ compared to Liquid Logic. The Committee also identified other issues to consider including processing between the Liquid Logic and Paris systems, management oversight on processes on recording and decision making on safeguarding recording and logging and the efficiency of communication between the two systems.

It was reported that the Paris system was used by the Mental Health Trust and not the Council. Some of the actions to be taken by the Mental Health Trust were still outstanding. It was noted that assurance is needed on how things are processed through Liquid Logic and it was expected that Liquid Logic would provide a greater level of reporting. The points made were noted and would be discussed with the Audit Team.

A member referred to the Disability Supported Accommodation Service and the limited assurance the audit had produced and drew attention to the likely changes in the support needs of the users of the service over time. Attention was also drawn to the management of the budget which did not meet the demands of the service.

Officers reported that the service had received an audit in view of concerns over budget overspends and to understand the service activity to be able to set a more accurate budget and introduce measures to better control this. It was noted that the use of agency staff was not the best use of resources and officers were now building on the recommendations of the audit. 

Decision

The Committee noted the report and comments made.

(Councillor Ahmed Ali declared a personal interest for the reason that he is a Council appointed representative to: Adoption Counts.)