The Governance, Audit, Risk Management and Standards Committee met on Tuesday 24 September 2024 to discuss various risk registers and audit progress reports. Key decisions included the establishment of a Standards Working Group and noting the progress of the 2022/23 external audit.

Establishment of the Standards Working Group

The committee resolved to establish a Standards Working Group. This group will be comprised of three members: one Independent Member, one Conservative member, and one Labour member. Reserve members will also be appointed. The membership rules stipulate that when the group is required, it will consist of one member from each of the main political parties and one Independent Member. The appointed members are Mr James Coyle and Dr John Kirkland as Independent Members, Councillor Yogesh Teli for the Conservative party, and Antonio Weiss for the Labour party. Reserve members include Christopher Baxter and Paul Osborn for the Conservative party, and Dean Gilligan and Eden Kulig for the Labour party.

Audit Progress Report 2022/23

Members received an update on the progress of the 2022/23 external audit. Representatives from Mazars, the auditors, outlined their work on the Council's statement of accounts for the year ending 31 March 2023. The amended backstop date for these accounts has been set for 13 December 2024, with auditors aiming to complete the audit by the end of November. For the 2023/24 audit, the backstop date is 28 February 2025.

During the discussion, clarification was sought on the valuation of property. Members were informed that due to capacity issues, an external company had been engaged for this task, and there was a risk that valuations might change due to the optimistic assumptions applied by the external company. The Strategic Director of Finance and Assurance confirmed that the Council had agreed to this adjustment.

Questions were also raised regarding Mazars' audit fees, which had increased substantially. This was attributed to the Council opting into a new procurement process, the first year of a fee contract, and fees being set by the Public Sector Audit Appointments (PSAA). The contract allows for additional fees for issues arising during the audit. A Mazars representative confirmed that the audit was nearing completion.

Regarding significant risks identified in the report, specifically the valuation of property, plant and equipment, investment property, and cash equivalents, it was confirmed that an issue with bank confirmation had been resolved and a new creditors list had been received in an acceptable format.

The Mazars representative also reported that backstop arrangements for the 2023/24 accounts had been ratified, and the National Audit Office had issued a revised Code of Practice. Due to insufficient time to complete the 2023/24 audit, Mazars intended to issue a disclaimed audit opinion to meet the backstop date. This was noted as a common occurrence across the country. The committee resolved to note the Audit Progress Report 2022/23.

Children's Services Directorate Risk Register 2024/25

An information report detailing the quarter 1 2024/25 Children's Services Directorate risk register and corporate risks was presented. The Strategic Director of Children's Services highlighted a red risk concerning the recruitment and retention of permanent and experienced social workers. She reported success in recruiting social workers from overseas and plans to develop staff through a social work academy. Members were assured that an experienced Children's Director was involved in the recruitment process for overseas staff.

Concerns were raised about the downgrade of three risks – inspection of the service, systems and partnership arrangements, and recruitment and retention – from red to amber. The Strategic Director explained that measures had been strengthened, capacity increased, and performance management made more robust. An Improvement Board, including the Leader of the Council and the Managing Director, and a weekly Board chaired by the Strategic Director were in place. An independent audit of the Children Safeguarding Team indicated reduced risks and improved quality, with risk assessments independently moderated.

Regarding children on a Child Protection Plan, the Strategic Director noted an increase in numbers and emphasised the importance of providing appropriate support to families and children. Fortnightly meetings are held to discuss at-risk children, and monthly meetings review children in need. Funding from the Department for Education has enabled the team to receive support and coaching from the London Borough of Islington, an authority rated as 'outstanding'.

A red risk related to the Mosaic system, a case file system, and a funding gap was discussed. The system had been reviewed, and the risk was associated with staff operating it. It was agreed that the team managing the system would be integrated into the Director of IT's service area. The funding gap was being managed by holding a vacancy. The committee resolved to note the report.

Adult Social Care & Public Health Directorate Risk Register 2024/25 Q1

Members received an information report on the risk register for the Adult Social Care and Public Health Directorate for the first quarter of the 2024/25 financial year. Nine risks were identified. A red risk concerning the recruitment and retention of permanent, experienced, and qualified social work staff was discussed. The Assistant Director of Health and Wellbeing stated that agency staff were covering most vacant positions, but the team aimed to develop an in-house academy. He noted the high competition for social workers and the need to make roles more attractive, harmonise grades, and develop an apprentice scheme.

The committee inquired about how the risk related to challenges to Adult Social Care budgets was being addressed. It was reported that increased support and funding were being received from the Integrated Care Board. The risk was attributed to rising demand for services, and officers were working to improve budget monitoring. The Strategic Director of Finance added that an additional £5 million in growth had been included in the budget, which was noted as being more volatile than others due to placement costs.

Regarding poor provider performance in the community equipment market, clarification was sought on a TUPE issue, which the Assistant Director undertook to provide after the meeting. Concerning fraud, the Assistant Director explained that this related to the misuse of direct payments and misrepresentation of financial circumstances for residential care. The aim was to ensure staff were aware of indicators of fraudulent activity, and fraud risk was a standard agenda item for Directorate Management Team meetings.

The interaction between different IT systems was questioned, particularly in relation to improvements in provider performance and the use of public health resources. The committee was informed that relationships with the consortium had improved. The committee resolved to note the report.

Annual Health and Safety Report for 2023-2024

A report detailing the annual review of health and safety performance was presented, aimed at assessing the Council's effectiveness in managing risk and addressing shortcomings. The Director of Human Resources and Organisational Development introduced the report.

Questions were raised about the accident and incident analysis for Maintained Schools. Clarification was sought on whether the figure of 188 included both students and staff, and why a figure of 214 was stated elsewhere. The officer explained that the latter figure included anyone associated with the school, provided the school subscribed to the Service Level Agreement. A breakdown of these figures was promised.

Regarding asbestos re-inspection surveys, the officer confirmed their requirement and the recommendation for repeat surveys. A member expressed concern about potential resident displacement, but the officer reassured the committee that inspections would be non-intrusive and undertook to liaise with Housing colleagues.

The Personal Emergency Evacuation Plan (PEEP) was explained as a document to support individuals requiring assistance to evacuate the workplace in an emergency. While not required for homeworking, it was useful to ascertain if assistance was needed. A General Emergency Evacuation Plan (GEEP) was also mentioned for those attending meetings.

A red risk concerning the failure to fulfil the Council's Health and Safety duties leading to a harmful event was discussed. The current view was that this was insufficient, but training for the Corporate Leadership Team on health and safety was being implemented. Officers expressed confidence in changing this risk status within six months.

In terms of equality implications, a member commented that the protected characteristics of pregnancy and maternity should be included. The officer acknowledged this as an oversight. The committee resolved to note the Accidents and Incidents report, the Health and Safety and Corporate Health and Safety Plan, and information relating to the Employee Assist Programme.

Internal Audit & Corporate Anti Fraud Team (CAFT) Progress Report

Members received a report on the progress of the Internal Audit and Corporate Anti-Fraud Team (CAFT) against their 2024/25 plans and the outcomes of reactive investigations. In response to a question about Internal Audit performance, the Interim Assistant Director of Audit and Anti-Fraud explained that performance indicator figures were not yet available due to a recent change in the indicator, and the client satisfaction survey was incomplete. The committee resolved to note the Internal Audit and CAFT progress report.