Agenda item

Purpose of the Report: Scrutiny of Services

To review the summary of audit findings produced as a result of an internal audit review of CFL Care Assessments.

Witnesses:

Mary Lewis, Cabinet Member for Children, Young People and Families

Dave Hill, Executive Director - Children, Families & Learning

Rachel Wigley, Interim Director of Financial Insights

David John, Audit Manager

Reem Burton, Principal Auditor

Key points raised in the discussion:

1.    After a brief overview of the audit, the auditors advised the Committee that their key wish was to see the Liquid Logic IT system fully implemented in Children’s Services alongside basic user processes as this would realise immediate improvements. The cultural issues identified would take longer to change. The Executive Director took the findings seriously but reminded the Committee that it took place during a period of significant staff upheaval.

2.    The Executive Director identified two key challenges: quality of social work and the financial controls and systems. The implementation of the IT system had not been good, taking it away from the core product, and this was under review with the supplier. Gateway Teams were now controllers of packages of care costs working with social workers in a break from the past practice of social workers deciding on placements. The result of this was a significant budget underspend.

3.    Auditors were questioned as to the culpability of individuals in the poor practice found in the audit report. The Audit Manager explained that this issue was due to poor embedding of the IT system and a lack of understanding around the importance of using the system properly not individual behaviour.

4.    The Audit Manager stated that the weaknesses in the use of the IT system were widespread and these problems had been known by historical management but never dealt with. The Executive Director reassured the Committee that there was an almost entirely new leadership team now in place and improvement action was underway.

5.    The Vice-Chairman thought that a follow-up audit was required to test the Executive Director’s assurances that the situation had improved. The Audit Manager would work with the service to scope and plan a follow-up audit at the optimum time. The Executive Director welcomed input from critical friends, outlining the other ways the Directorate had been challenged including Ofsted inspection, peer review and by the Children’s Commissioner.

6.    The witnesses clarified the timeline of the audit for the Committee. It was commissioned by the incoming Chief Executive last year and reported informally in May 2018. The Executive Director began in April and independently identified issues with gatekeeping of costs and the quality of placements. New processes were in the planning stage during the summer and were implemented from September. Internal Audit commented that it had been difficult to get the service to engage with the draft findings during this period.

7.    A Member queried the role of Finance in helping Children’s Services control costs; it had been suggested their role was transactional rather than supportive and it was hoped that this would change. The Director of Financial Insights explained that the Finance Improvement project work was working to develop processes and enable services to improve too. Finance would contribute to the improvements needed in the IT system including the use of ContrOCC, a financial administration package.

8.    Internal Audit would like to see set processes and procedures introduced recognised and understood by all staff. The Executive Director envisaged the review of, and improvements to the use of the IT system would take six months to complete.

9.    The Cabinet Member reflected that the item had demonstrated to the Committee what a service twice rated inadequate looked like as Ofsted reports can often simplify the problems. The service had been defined by a theme of crisis management and the report showed the implications of this. It would be difficult to change the whole culture but this would start with implementing compliance with basic processes.

RESOLVED:

1.    The Committee wishes to see a follow-up Internal Audit scheduled on care assessments in June or July 2019 with findings reported to this Committee at its November meeting.

2.    This audit should cover progress on the review and improvement of the LCS system including ContrOCC and commentary on the success of the Gateway Team in improving the quality and cost of placements and the roll out of training to social workers.