Agenda item

Report of the Director of Corporate Resources to advise the Committee of the work undertaken during the first quarter by the Internal Audit Service in completing the 2013/14 annual audit plan together with the responsive and housing benefit fraud investigation work, and to provide details of the work undertaken by Council’s Human Resources business unit in supporting disciplinary action taken across all departments by respective Council Officers and consultants employed by the Council.

The Committee considered the Internal Audit Progress report for quarter 2, 2013-14, as circulated. Anne Woods, Head of Audit and Risk Management, highlighted the briefing at Appendix E to the report on the DWP proposals for a Single Fraud Investigation Service, and the concerns regarding the impact this could have on local authorities’ ability to tackle issues such as tenancy fraud. It was noted that the Local Authority Investigation Officers Group had lobbied the DWP regarding these concerns, but there had as yet been no response.

The Committee noted that there had been three limited assurance reports this quarter. Particular concern was expressed regarding the Mayoral Community Infrastructure Levy, and the Committee asked why a recommendation had not been made that all CIL calculations should be reviewed, given that errors had been identified in three out of the ten cases sampled. With regard to the number of limited assurance reports, it was noted that the total number of audit reports completed in the quarter had been high, and the three identified therefore represented a small proportion. It was noted that the Interim Director of Children’s Services was looking at the two limited assurance reports relating to CYPS, and it was anticipated that significant progress on implementation of these recommendations would be reported back soon. In respect of the CIL report, it was noted that the service had offered to review CIL cases and processes as a result of the audit findings, and it had therefore not been necessary to issue this as an audit recommendation. It was agreed that a report on progress on implementation of the audit recommendations would be circulated to the Committee outside the meeting.

The Committee asked about the timescales for suspension cases, and how these could be closed down more quickly. The Chief Executive advised that there was a focussed effort on resolving suspension cases more quickly, as a consequence of which a number of service level and Member level hearings had been scheduled recently. The Chief Executive agreed to circulate in confidence details of the one outstanding suspension case exceeding 100 days’ duration.

In response to a question from the Committee regarding how sub-letting of Council properties was identified and investigated, it was reported that there were a number of possible reporting mechanisms, and that potential cases were also identified through data-matching exercises and through the National Fraud Initiative. Any cases successfully prosecuted would be publicised in Haringey People and Home Zone.

The Committee asked about the number of outstanding suspension cases, and it was agreed that the Chief Executive would circulate a breakdown of ongoing cases to the Committee confidentially outside the meeting. It was noted that the number of ongoing cases had reduced, as a number of cases had been concluded since the production of the report. Concern was expressed regarding the over-representation of BAME staff in disciplinary cases, in response to which the Chief Executive advised that he shared these concerns and had initiated a piece of work to try and identify the issues and would report the findings of this work to the Committee in due course.

The Committee asked about the cost-effectiveness of engaging consultants for prolonged period of time – particularly with regard to the two single frontline services posts reported at the bottom of page 160 of the agenda pack. With regard to these two posts, the Chief Executive agreed to provide details of the Highways Contract post to the Committee outside of the meeting, and advised that for the other post, the possibility of entering into a contract for the Confirm software was being explored. The Committee asked whether it may be possible to offer permanent recruitment to the individual concerned, and it was agreed that this would also be explored.

In response to concerns raised regarding recent disciplinary cases relating to individuals not having the right to work in the UK, the Chief Executive agreed that recent cases had highlighted the need to address this issue, and reported that recruitment processes were being strengthened such that all job applicants to provide evidence of their right to work in the UK before any appointment was made.

The Committee expressed concern at the briefing regarding the SFIS. It was agreed that the Committee would ask the Chief Executive and Leader to write to the DWP regarding this issue, and that both political groups would ask their respective MPs to pursue this matter.

RESOLVED

i)             That the audit coverage and counter-fraud work completed be noted; and the actions taken during the quarter to ensure audit recommendations are implemented and that outstanding recommendations are addressed during the second quarter, 2013/14.

ii)            That the information received from the HR business unit be noted.

iii)           That the Council’s proposed actions, set out in appendix E, in response to the DWP’s statements on how SFIS will operate be agreed. In addition, that the Chief Executive and Leader be asked to write to the DWP regarding this issue, and that both political groups ask their MPs to pursue this matter.