Comhairle nan Eilean Siar Internal Audit Follow Up Review Children s Services Cost of Placements Final Report FU01 13/14
INTERNAL AUDIT FOLLOW UP REPORT CONTENTS Page SECTION 1 - EXECUTIVE SUMMARY 1 3 SECTION 2 - DETAILED FINDINGS AND RECOMMENDATIONS 4 5 APPENDIX RESPECTIVE RESPONSIBILITIES OF MANAGEMENT AND 6 INTERNAL AUDIT
INTERNAL AUDIT FOLLOW UP REPORT SECTION 1 EXECUTIVE SUMMARY Introduction 1.01 This follow up report has been prepared for the Comhairle s Audit & Scrutiny Committee. The original report advised of a number of recommendations made in the Children s Services Cost of Placements report which was issued on 7 March 2013. The follow up review was undertaken in accordance with the operational annual internal audit plan for 2012/13. Internal audit objective 1.02 Following up internal audit reports and assessing the level of compliance with recommendations made is an important part of the internal audit function. 1.03 In accordance with the remit detailed in the operational annual internal audit plan for 2013/14, our internal audit work was designed to obtain assurance that the original recommendations have been implemented. We obtained this assurance through internal audit testing and undertaking discussions with key personnel. 1.04 The main recommendations in the original report were: - The need to review and update the Contract and Service Specifications between Action for Children (formally NCH) and the Comhairle; and The cost of weekly mainland placements can be significant, the use of or access to national contracts should be explored in order to demonstrate best value. 1
INTERNAL AUDIT FOLLOW UP REPORT SECTION 1 EXECUTIVE SUMMARY (CONTINUED) Detailed findings 1.05 The current status of progress against the original recommendations can be summarised as follows:- Key to status Fully implemented; Partly implemented, although further work is required to meet the objective of the recommendation; or Insufficient progress to date. Recommendation Action to Date Status The partnership that exists between the Comhairle and AFC should be formally agreed and an updated Contract and Service Level Agreement be implemented and agreed between both parties. This should be periodically reviewed and circulated to relevant staff. Partly implemented The specification should also be updated and reviewed periodically to advise users of the contents of the specification and how the delivery of the service should be carried out. In addition, a service specification schedule should be in place for all services the Comhairle fund. Partly implemented Procurement of mainland placements should be considered through the Scotland Excel list in order to demonstrate best value. Fully implemented 2
INTERNAL AUDIT FOLLOW UP REPORT SECTION 1 EXECUTIVE SUMMARY (CONTINUED) Recommendation Action to Date Status In terms of completeness, inspection body reports should be held on service users files. Fully implemented The Comhairle demonstrate that it has a defined interest in any improvements required in funded placements as a result of any independent inspection findings and follow up confirmation from the establishment must be obtained in order to demonstrate that remedial action has been implemented, where applicable. Fully implemented Concluding remarks 1.06 From our follow up testing, we note that out of the 5 follow up recommendations made in the original follow up report 3 appear to have been fully implemented, and management have confirmed that the remaining recommendations will be implemented by October 2013. 1.07 For Comhairle nan Eilean Siar Internal Audit Services Internal Audit Comhairle nan Eilean Siar Council Offices Sandwick Road Stornoway 3
INTERNAL 4 AUDIT FOLLOW UP REPORT SECTION 2 DETAILED FINDINGS 2.1 Action recommended Action by Progress to Date Action outstanding The partnership that exists between the Comhairle and AFC should be formally agreed and an updated Contract and Service Level Agreement be implemented and agreed between both parties. This should be periodically reviewed and circulated to relevant staff. Bernard Chisholm 1 July 2013 Commissioning framework has been drafted and work is being progressed with Helen MacKenzie in terms of the: - Commissioning strategy training; - Service specification meetings of the Providers Forum Finalising of the commissioning framework. The specification should also be updated and reviewed periodically to advise users of the contents of the specification and how the delivery of the service should be carried out. In addition, a service specification schedule should be in place for all services the Comhairle fund. Bernard Chisholm 1 October 2013 and quarterly thereafter. A range of unmet needs have been identified and a service redesign paper is being drafted. It is anticipated work will be completed in October 2013 and reported to Committee. Finalising specification service schedule. of and 4
INTERNAL 5 AUDIT FOLLOW UP REPORT SECTION 2 DETAILED FINDINGS (CONTINUED) 2.2 Action recommended Action by Progress to Date Action outstanding Procurement of mainland placements should be considered through the Scotland Excel list in order to demonstrate best value. Bernard Chisholm 1 April 2013 All placements are compliant with Scotland Excel list procurement None. 2.3 Action recommended Action by Progress to Date Action outstanding In terms of completeness, inspection body reports should be held on service users files. Bernard Chisholm Immediately Compliant. None. The Comhairle demonstrate that it has a defined interest in any improvements required in funded placements as a result of any independent inspection findings and follow up confirmation from the establishment must be obtained in order to demonstrate that remedial action has been implemented, where applicable. Agnes Macdonald 1 April 2013 Compliant. None. 5
INTERNAL 6 AUDIT FOLLOW UP REPORT APPENDIX: RESPECTIVE RESPONSIBILITIES OF MANAGEMENT AND INTERNAL AUDIT Internal controls It is the responsibility of Comhairle management to maintain adequate and effective financial systems and to arrange for a system of internal controls. Our responsibility as internal auditors is to evaluate significant financial systems and associated internal controls and to report to the Audit Committee on the appropriateness of such systems and controls. In practice, we cannot examine every financial activity and accounting procedure and we cannot substitute for management s responsibility to maintain adequate systems of internal controls over financial systems. We therefore may not identify all the weaknesses that exist in that regard. Fraud and corruption The prime responsibility for the prevention and detection of fraud and irregularities rests with Comhairle management. They also have a duty to take reasonable steps to limit the opportunity for corrupt practices. It is our responsibility to review the adequacy of these arrangements, but our work does not remove the possibility that fraud, corruption or irregularity may have occurred and remained undetected. We nevertheless endeavour to plan our audit so that we have a reasonable expectation of detecting material fraud, but our examination should not be relied upon to disclose all such material frauds as may exist. 6