Agenda and minutes

1.1  Councillor Nick Sharman was approved as chair. Councillor Brian Bell was approved as Vice-Chair.

4.1  The minutes of the previous meeting were agreed as a correct record.

Matters Arising

Payroll Data

Michael Honeysett reported to the Committee that although the process was

working there were concerns with reporting and the interface with pensions.

The chair expressed concern that this remained a red risk and needed to be

monitored. He asked for a verbal update at the next meeting.

  ACTION: Michael Honeysett

5.1  Ajman Ali, Director of Housing updated the Committee on his priorities for housing, highlighting the following areas:

·  The Capital Investment Plan

·  Asset Management Strategy

·  Housing Business Plan 

·  Procurement of Services

·  Modernisation of Housing Services

·  Ensuring Stability

·  Cultural Change

·  Ensuring visible management in the service

·  Improving Performance

·  Improving the turnaround of voids

·  Lifts required investment

·  Ensuring Value for Money

·  Savings

·  Innovation

5.2 The Chair emphasised the need to manage a sense of direction.  Councillor Michelle Gregory referred to the high level of Agency Staff in the Department and asked for an update in six months’ time on reducing this figure together with the costs involved.

Action: Director Housing

Councillor Gregory went on to asked for action on repairs reporting suggesting the use of automatic responses from officers to tenants on jobs, including when there were issues on the block that affect all residents.

5.3   Councillor Yvonne Maxwell stressed the importance of looking at ways of involving residents in what was considered to be good performance together with human and financial costs of turning around voids. She referred to excessive time spent by staff on monitoring badly performing contracts.

5.4 Councillor Patrick Spence asked what factors could be addressed to reduce the 73 days turnaround of voids. He referred to the level of arrears of 4 million and how this compared to other local authorities and how proactive the Council was in dealing with tenants who fall into arrears. He stressed the importance of earlier intervention to avoid tenants being in the advance stages of litigation.

5.5  The Chair asked if milestones had been established to enable the Committee to oversee the priority areas. He stressed the importance of completing repairs at first visit, thereby controlling higher costs. Further, there was a need to oversee contracts and looking at taking contracts in house.  

ACTION: That the Director of Housing prepare a set of priorities with milestones to allow effective monitoring by the Audit Committee.

5.6 Ajam Ali told the Committee that work was ongoing with the Residents Liaison Group to ensure more formal goals and the Council’s Communications Department had carried out a survey.   He confirmed that he would supply figures on reductions to temporary staff in six months. He told the Committee that efforts were made to communicate with residents as soon as possible and that communications were hand delivered. In relation to temporary accommodation cost he confirmed that he would be able to access figures on this.  Further, he confirmed that contracts could be taken back in house and would compile priorities.   

6.1  Rob Miller introduced the report. Delivery of work would take place in line with strategic principles and a service oriented approach. Work was ongoing on the repairs service, making it easy to use with benefits for residents and staff. Rob Miller went tell the Committee about the overview of service engagement to support digital change across the council and that work was ongoing with the Communications Department on this. The Committee noted that there had been a complete restructure of the department and a successful recruitment campaign, securing the best staff, including a head of delivery. 

6.2  Councillor Michelle Gregory emphasised the need for training for residents. Councillor Patrick Spence referred to the fact that many residents did not have a computer and whether the Council was undertaking outreach work in this regard. Rob Miller confirmed that when improvements were being made work was carried out on collectively digital access across the Borough. He acknowledged the need for out-reach work. Community groups and business could be used in this regard with specific focus on estate.  In response to Councillor Gregory’s question on mobile phones, Rob Miller confirmed that these were designed for accessibility.

6.3  The Chair referred to risks around adequate resourcing, achievement and the dangers of systems updates together with resilience.  He referred to good relationships in some areas while not in others and that there was a need for interaction with the Boards that had been set in the Council.  In relation to performance and targets he asked if there were milestones that could be measured.  Rob Miller confirmed that much progress had been made in demonstrating value for money. Improvements were being made in relation to systems updates and that resilience was good in particular in respect of google.  He referred to good relations with departments across the council with growing expectations. Work was on going on the measurement of performance and targets in how ICT supported other departments.  The chair emphasised the need to have core indicators 

RESOLVED:

1. To note the progress that had been made with realigning the Council’s strategic approach to ICT and digital service delivery.

2.  To note the formal closure of the previous 2015-2020 Hackney Digital Strategy and the direction of travel based on the service oriented and thematic approach as set out in the report.

7.1  Polly Cziok introduced the report advising the Committee of the key risks facing the Chief Executives Directorate in 2018/19 and the actions being taken to reduce the likelihood and impact of those risks.  An end of year review of the risk environment and management actions that the Directorate had lead responsibility for had been undertaken

7.2  Councillor Michelle Gregory asked for more detail on risk on Local Economic Development. Councillor Evonne Maxwell highlighted the risk of Brexit and the consequent loss of European funding. The Chair referred to the new risk around environmental sustainability and the need to look at how the risk could be mitigated including developing actions and how these actions are monitored. He queried what the Council was proposing to do in relation to the community sustainable strategy. He queried whether convergence in Growth Borough was still relevant and if so that this should be reviewed and asked that Stephen Haynes attend a future meeting.

  Action: Stephen Haynes

7.4  Councillor Patrick Spence asked Strategic Organisation Development and Polly Cziok told the Committee that the Change for Everyone programme covered areas such as staff engagement, recruitment and retention, internal communications and equalities.  Ian Williams that the programme encouraged management and staff to work more efficiently, while reducing bureaucracy. Polly Cziok confirmed that the Mori would be carried out in the autumn.  She reported that feedback from the staff satisfaction was good.  There continued to be issues with diversity at the upper levels of the organisation.

7.5 Ian Williams identified some risks in relation to Brexit such as difficulties around recruitment and retention of staff. A report on Brexit was previously submitted to the Committee and he confirmed the submission on a further report on this matter.  Polly Cziok went to tell the Committee a current review wished to unlock processes at the top of the organisation, giving senior managers an increased role.

7.6  The chair reported that he had met with Councillor Burke on sustainability and would submit a paper on this, inviting Councillor Burke to a future meeting.

  Action: Ian Williams.

RESOLVED:

To note the contents of the report and the Chief Executive’s Directorate Risk Register at Appendix 1 to the report.

8.1 Pradeep Wadden introduced the report with the latest update on treasury management activity covering the first 2 months of the 2018/19 financial year.  He reported that there were no major changes since the submission of the previous report. It was noted that cash balances were down but that this was not a trend. The chair stressed the need for a context on this. Further, he stated that there was increased risk with the more borrowing and interaction with the markets. Ian Williams agreed to arrange training on treasury management.  

  ACTION: Ian Williams.

RESOVLED:

To note the report.

9.1  Ian Williams introduced the report updating the Committee on key activities planned for the next year in particular around commercialisation, financial and corporate risk.

9.2   The chair asked for member’s views on what they considered to be priority areas for the Committee to keep under review, adding that he considered SEND to be on such area.  Councillor Evonne Maxwell reiterated the need to review around SEND and the Budget overspend.  Ian Williams reported that the matter was being discussed with the City and Hackney Clinical Commissioning Group and that details be circulated to members. It was agreed that the up to date information on SEND funding be circulated to members

   ACTION: Ian Williams

9.3  Councillor Michelle Gregory welcomed the use of reserves to be a point of discussion for members.

9.4  Councillor Patrick Spence welcomed the use of smaller groups of councillors to drill down into issues.

9.5   Ian Williams told the Committee the work programme on SEND would be submitted to the Audit Committee in July.

  ACTION: Ian Williams

RESOLVED:

To note the report

10.1  Ian Williams and Chair thanked Matt Powell for all his work on risk.  The report updated the committee on the current Corporate Risk Register of the Council as at June 2018. The report also identified how risks within the Council were identified and managed throughout the financial year and the Council’s approach to embedding risk management. Matt Powell told the Committee that five risks had reduced as a result of senior management action and controls put in place.

10.2  Ian Williams told the Committee that an update on Universal Credit would be made to a future meeting together with an update on Brexit.

      Action: Ian Williams

10.3  The Chair asked about how the assessment of risk was being recorded in relation to the work of the Council’s Boards. Ian Williams agreed to circulate the Risk Register of the Housing Development Board.   He stressed the need to build risk into cross departmental working groups.

  Action:  Ian Williams

RESOLVED:

To note the contents of the report and the attached risk registers and controls in place.

11.1  Bruce Deville introduced the report providing an updated set of key performance indicators along with an update on risk management with a scorecard and accompanying commentary on the Council’s risk approach. The report also set out the latest capital programme monitoring with some enhanced analysis of the variances to budget. Further enhancements to this section of the report as discussed at previous Audit Committees had been made, specifically in relation to the financing of the programme. 

11.2   Bruce Deville reported that 92.9 % of repairs were now completed on first the first visit, with the repairs service now being able to react in real time. The chair asked if there was separate data for contractors and Bruce Deville agreed to incorporate this information, highlighting works carried out by the DLO and contractors. The Chair went on to query the turnaround of voids of 72 days. Bruce Deville told the Committee that long term voids had distorted the overall figures. Councillor Michelle Gregory asked if underperforming contractors were financially penalised. Ian Williams told the Committee that there were controls in place, including withholding payment. Ian Williams agreed to circulate a briefing on the 72 days turnaround of void properties. Rotini would be requested to produce a briefing to members of the committee on the workings of contracts.  

11.3 Councillor Patrick Spence referred to increases in rent arrears and sickness levels and Bruce Devile told the Committee that rent arrears fluctuate around Christmas and would update the next meeting of the Committee on sickness levels Ian Williams told the Committee that rent arrears had reduced in the last quarter. Councillor Patrick asked about the introduction of Universal Credit. Ian Williams confirmed to the Committee that the introduction of Universal Credit had been delayed a number of times.  He told the Committee that the Council made efforts to ensure that it was easier for people in the Borough to pay Council Tax.

ACTION: Bruce Devile

11.4  Councillor highlighted the fact that the percentage of Council Tax collected had increased to 94 %. She went on say that there were individuals in the borough who would find it difficult to pay Council Tax.  Ian Williams reported that this assumption is taken into account in setting the Council Tax Budget and that the Council works to mitigate this.  

RESOLVED:

1. To note the performance indicators presented in appendix 1 and the Risk Management Scorecard in appendix 2 to the report. 

2.  To note the current capital monitoring update in appendix 3.

12.1   Michael Sheffield introduced the report providing details of Internal Audit during 2017/18 and the areas of work undertaken, together with an opinion on the soundness of the control environment in place to minimise risk to the Council. He reported that the overall insurance levels remained the same and that the control framework was sound. 89% of high priority recommendations had been implemented. 84% of medium priority recommendations had been implemented. The key financial finding were audited more frequently and there was a good level of assurance.

12.2  The Chair thanked officers for a reassuring report.  He referred to a failure on the part of TMOS to pick up on audit. Julie Sharp reported that the Council audited TMOs with issues and was raising awareness of the processes involved around good governance. An action plan was now in place. The Chair emphasised the need for overview and monitoring in this area and asked what and asked what future action was to be take.  Julie Sharp confirmed that there would be regular visits to TMOs. In the event of a lot of recommendations being made during a visit, further visits are carried out. Further, the TMO team had produced a guide on governance to be issued to TMOs. The TMOs service team had put together an action plan with training on GPDR and considering other areas of training.   

RESOLVED:

1.  To note the report of Internal Audit’s performance and opinion of the Council’s framework of governance, risk management and internal control.

2.  To approve the revised Internal Audit Charter and Strategy.

13.1  Michael Sheffield introduced the report on the Annual Fraud and Irregularity report 2017/18. The attached documents provided documents provided status report and analysis of reported fraud and irregularly. Estimated savings arising from enquiries amounted to £4,912,085. The volume of fraud work remained the same. In relation to internal fraud there had been a high number of investigations. Legacy issues continued in hackney homes including around TMOs and there was extensive restructuring in housing. Whistleblowing was most prevalent in the area of housing. During the course of the year eight staff had been dismissed or had left the Council. 

In relation to Tenancy Fraud Investigations

-  66 tenancies had been recovered 

-  14 Right to Buys had been cancelled or withdrawn

-  40 housing applications had been cancelled

The number of housing applications represented a reduction against previous years and resulted in part for an increased awareness of the Local authority response among perpetrators. 

13.2  In response to a question from the Chair regarding the level of staffing, Michael Sheffield confirmed that a full team was in place. 

13.3  Councillor Patrick Spence referred to the reduction in the number of tenancies recovered.  He asked how the council compared to other councils in this regard. Michael Sheffield told the Committee that other providers had their own anti-fraud teams in place and carry out this work themselves. He further confirmed that his staff were committed to identifying fraud in the Borough. He acknowledged that there was scope for improvement in this area. He confirmed that the Legal Department had increased resources in this area and that this had a positive impact. Michael Sheffield agreed to produce 2/3 year old comparison to other councils.

  ACTION: Michael Sheffield

13.4 Dawn Carter-McDonald confirmed to the Committee that an action plan was in place to rectify this.  The Chair stressed the need to have the most effective processes in place to identify fraud and asked for a reassurance that the matter was investigated.

13.5   Councillor Evonne Maxwell raised the issue of tenants renting out for 90 days a year.  Michael Sheffield confirmed that the key driver in this area is that the property is not used as their own home.  It was made clear that the property was not used as a business and that the Council must of informed of the subletting.    

RESOLVED:

To note the report.