Agenda item

1.1            The Strategic Director for Social Services provided some background relating to safeguarding of children’s money to the Committee and the complexities due to the different nature in the types of monies being held for the children and the changes in the lives of children in care.

1.2            The Strategic Director for Social Services approached Andrew Wathan, former Principal Auditor to conduct an audit because of the complexities involved and as the process also crossed several service areas.  It was also equally important for those children no longer in care that the money should go with them.

1.3            The Director pointed out that another intricate factor was where the money was held, depending on whether it came from compensation, criminal injuries payments, baby bonds, monies held in trusts or other sources. Much of it was in share foundation which only had reference numbers and not names of the children which made cross-referencing difficult. The Strategic Director for Social Services felt the unsound opinion was disappointing but was grateful that there was an opportunity to ensure the system was correct. This had been discussed with the Executive Board and the Cabinet Member, and it was proposed that two additional posts be created. In addition, there was a clear action plan which would be managed by a service manager; and they would also oversee the full process, working in conjunction with business support and colleagues in other areas of the Council.

1.4            The Chair congratulated the Strategic Director for Social Services for raising this issue for audit and thanked her on behalf of the committee.

Comments of the Committee:

1.5            Cllr Mogford queried why this needed to be brought to audit for resolving if the officers already knew there were issues. The Strategic Director for Social Services confirmed that whilst steps were taken to address it was considered that an independent and objective view from audit would be beneficial. The Director confirmed that the challenge around the complexities of safeguarding children’s money was not isolated to Newport, and similar audits were now being conducted in other councils following Newport City Council’s audit. 

1.6            Dr Barry asked how long this had been an issue.  The Strategic Director for Social Services advised that there were several factors that raised this as a concern, including payments being processed through family courts, savings related to a judicial review and the work of the Share Foundation which triggered Social Services to look at the whole thing.

1.7            D Reed queried when the issue had been considered with the Cabinet Member for Social Services (Children), and the Strategic Director confirmed that it had been taken to the Executive Board and documented as part of the minutes of that meeting were taken.

1.8            Councillor Horton asked whether the money was being held in the best accounts that generated interest for the children/young adults.  The Strategic Director for Social Services advised that it was held in The Share Foundation partly for this reason, and the Foundation handled the money on behalf the Council and other Local Authorities.

1.9            The Chair mentioned that it was reported in the press that there was £1.7Bn held in trust funds for children where it was not known who the funds belonged to. The Strategic Director for Social Services confirmed awareness of this and further challenges for young people with disabilities who may not be able to attend the court of protection in person to access their money.

1.10         D Reed thanked the Strategic Director for Social Services for the report and remarked on the staggering complexities of the topic but considered that the Committee should not accept the explanation and escalate their concerns as per the second option outlined in the recommendations.

1.11         The Chair thanked The Strategic Director for Social Services and expressed their confidence that this would be resolved.

Recommendation:

The Governance and Audit Committee considered the following options:

i) accept the explanations and assurances of the Strategic Director and the Head of Service, which will be confirmed via a third follow up internal audit, or

ii) do not accept the explanations and assurances provided and escalate concerns to the Chief Executive and Executive Board, and Cabinet Member

The Governance and Audit Committee resolved to take forward the second recommendation ii) Do not accept the explanations and assurances provided and escalate concerns to the Chief Executive and Executive Board.