Agenda item

The Head of Audit and Risk Management introduced the report which detailed the work undertaken by the in-house Audit and Risk Team, as well as our outsourced partner Mazars, for the quarter ending 30 September 2021. It was noted that the service had received fewer fraud referrals during the Covid-19 pandemic but that this was now increasing to more normal levels.

It was noted that Early Help Care Plans had been removed from the audit plan but the Committee queried whether this issue had been resolved. The Head of Audit and Risk Management stated that the EY audit had been delayed by six months to allow the findings from the Care Quality Commission (CQC) to be embedded before an evaluation. It was added that this area would be reviewed as part of the internal audit plan in 2022-23. It was confirmed that Commercial Land and Property had been added to the audit plan in response to a request from management. The rationale for this was to ensure that there was a robust arrangement for the management of the portfolio.

It was noted that Park View School had been subject to cyber fraud and it was enquired whether there was evidence of similar issues elsewhere. The Head of Audit and Risk Management stated that this was the only known case at present. It was highlighted that cyber fraud was increasingly common and that a cyber audit was being conducted which would be shared with the Committee.

Some members asked whether it would be possible to provide comparative data and learning points over the previous two years in each quarterly report. The Head of Audit and Risk Management noted that there was an annual report which set out in detail the work relating to anti-fraud and any lessons learned, including the numbers of cases.

The Committee noted that there were currently 230 potential tenancy fraud cases outstanding and it was enquired whether there were a large number of older cases or whether this represented mainly new cases. The Head of Audit and Risk Management stated that there were 230 ongoing cases but that a number of these were older cases that required some physical visits and had been delayed by the Covid-19 pandemic. The Committee noted that it would be helpful to have further information on the average timescales for processing cases.

The Committee noted that the audits on Purchasing Cycle and Management of Contracts Register had been removed. It was enquired why these audits had been removed given the Committee’s previous questions and concerns about whether there were satisfactory assurances. The Head of Audit and Risk Management explained that the audits had been delayed pending the outcome of an organisational review about procurement related activities, including contract management. It was noted that the audit of Contract Management was currently at the fieldwork stage and it was enquired whether this would be deferred pending the outcome of the organisational review. The Head of Audit and Risk Management explained that this related to the follow up of a previous audit to review whether the recommendations had been implemented after six months.

Some members of the Committee commented that there was a significant number of cases relating to Homes for Haringey and asked whether this suggested that there were deficiencies in tenancy management or processes and whether the council should recuperate some costs from Homes for Haringey. The Head of Audit and Risk Management did not believe that there were particular issues with tenancies compared to other boroughs. It was explained that Homes for Haringey funded a Tenancy Fraud Officer who acted as a conduit between the two organisations.

It was enquired whether the Committee could be updated on the 11 cases of people who had No Recourse to Public Funds (NRPF). The Head of Audit and Risk Management stated that he would provide an update to the Committee outside of the meeting. In response to a question about audits being added and removed, the Head of Audit and Risk Management explained that the audit plan set out the areas that were due to be reviewed and why. It was noted that the audit plan was driven by the key areas of risk and that this was reviewed periodically and/ or when new information was available.

RESOLVED

To note the activities of the Audit and Risk Service during quarter two of 2021/22.