Agenda, decisions and minutes

1.1  Dawn Carter-McDonald outlined the legal context for holding remote local

authority meetings, including the recent amendment to the Local Government Act 1972 to facilitate this. She outlined the measures in place to fulfil the related regulations. 

1.2 The clerk read from the Committee Protocol points relating to the management of the Committee.

Apologies for absence were submitted on behalf of Councillor Bell.

2.1  Apologies for absence were submitted on behalf of Councillor Bell.

Councillor Gregory declared that she was a member of a TMO

3.1  Councillor Gregory declared that she was a member of a Tenants Management Organisation.

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

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

RESOLVED to note the impact of COVID 19 on the financial position of the Council

5.2  The Chair stated the contribution of the Audit Committee in assessing risk, measuring performance management and performance, ensuing that the Council is achieving value for money. Questions to be asked at this time included whether the Council was setting clear objectives and accounting for and using its resources. Is there an understanding as far as possible of the medium and long term implications of Covid 19. Is the Council planning appropriately for these and are Council Departments examining the new risks.  

5.2  Rob Miller referred to the fact that consideration had been given to how the council’s governance arrangements were working during the crisis, given the importance of having effective control and democratic oversight. The Councils Management Team and other senior managers were meeting regularly, providing for a clarity of oversight, linking into Cabinet and the newly established Cabinet Sub-Group, ensuring cabinet oversight. The focus was on key thematic, collaborative working across services around the needs of residents, including focusing on such areas, as vulnerable people, accelerating discharge from hospitals, working with rough sleepers. This was carried out at pace.

5.3  Meetings were being held with trade unions to have a combined response, with a joint statement sent to all staff.  Rob Miller referred to staff anxiety in the crisis.  Collaborative work with partners was particularly important in providing social care. He said that the focus was on maintaining key services where possible, referring to effective collaborative work in keeping parks open. New services had been created including to provide food to the isolated.

5.4  Rob Miller referred the Committee to initiatives around:

·  Single management arrangements

·  Home based working

·  Web chat

·  Volunteering hub

·  Contact had not reduced

·  Reduction in wait times

·  Customer satisfaction slightly lower

·  Emergency repairs only

·  Increase in benefits requests

·  Work on staff wellbeing

The slides referred to would be circulated.

  Action: Rob Miller

5.5  Councillor Harvey Odze asked if staff working from home had been made aware of HRMC £6 allowance and whether working from home was in employment contracts.  Councillor Odze asked how the lessons/ innovations currently being learned would be incorporated into economising in the following financial year.  Ian Williams told the Committee of effective engagement with the Trades Unions on employment issues and that technical detail was being worked through. In relation to building in innovation, he referred the Committee to the next steps section of the report at section 19.

5.6  Ian Williams introduced the report, thanking Council staff, public sector partners, partners in the community and voluntary sector, and citizens of Hackney who had stepped up to the challenge posed by Covid 19. He referred the Committee to a number on issues including:

·  A budget gap of £19m over the planning period

·  That timescales were uncertain in relation to the Fairer Funding Review and the spending review

·  Financial challenges were being considered

·  Hackney’s share of the government funding measures was £10.092m. A full announcement of further government additional resources was to be announced on Saturday. Detail was awaited but the working  ...  view the full minutes text for item 5.

RESOLVED to note the impact of Covid 19 on the financial position of the Council.

RESOLVED to note the performance indicators presented in appendix 1, the Risk Management Scorecard in appendix 2 and the current capital monitoring update in appendix 3

6.1  The Committee noted the updated reports that were selected to be reviewed by the Audit Committee on a regular basis as part of the Committee’s overview of the Council’s performance. It provided an updated set of of key performance indicators along with an update on risk management with a Corporate Scorecard, together with 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.

6.2  The Chair emphasised the need at this time to develop a new performance framework to assess performance in such areas as tackling hardship, homeless, etc. It was noted that the Council’s data team was currently working on this.

RESOLVED to note the performance indicators presented in appendix 1, the Risk Management Scorecard in appendix 2 and the current capital monitoring update in appendix 3

RESOLVED to note the contents of the risk register and the attached risk registers and controls in place.

7.1  The Chair asked about how the Council was adapting to the current circumstances in adjusting risk profiling.

7.2   Anne Canning thanked staff across the council, partners and the community for their work during the crisis, together with the support of members of Council. Anne Canning referred to the increase in risk as a result of the current public health and human rights crisis brought about by covet 19 and highlighted two areas risks, increased because of the current lack of lines of. These were:

-  Safeguarding with the current pressures on families

-  To ensure the continuity of respect and appropriate care to the most vulnerable in the Borough  

Children and Families

Anne Canning told the Committee of the current increase in demand, referring to universal credit and austerity.  Referrals had decreased significantly across all council services. Social Workers were working to maintain contact with the families that were known to them in the Borough, emphasising that those in need should access services. Further, a lot of work was carried out by Children and families and the HLT to ensure that there was engagement with families with constructive conversations. She said that austerity had put a lot of pressure on families with further impact from Covid 19. There was increased demand for 16 and 17 year olds, increasing financial pressure on the Council.

Following the downgrading to ‘requires improvement’ by Ofsted a focused implementation plan had been put in place, with Council Member oversight. Work continued on this to address from children’s safeguarding.

Hackney Learning Trust

Anne Canning reported that some issues had been downgraded by the government in the current circumstances, with initiatives around the National Funding Formula put on hold. She reported that the Council had received a three year settlement. SEND funding continued to be an area of concern, with features such as the requirement for demand locally. There was a partitioning out of exclusions to look at SEND as a separate entity.

Risk continued in relation to how the council housed transport vehicles. Work continued on programme delivery with implementation anticipated in September.

Safeguarding considerations for those pupils in unregistered schools continued to be a risk.  The service did all it could to support these children who are home educated and worked to have better processes in place to identify and support these children.

Public Health 

Risk in this demand led area focused on uncontrolled increases in sexual activity spend and uneven access to services. Work was underway to mitigate this, with communication across London.

Adult Services

Anne Canning referred to significant financial risk in the area of Adults Services.  Safe care during the crisis was a much discussed subject in the media.  There were four care homes in the Borough and the Council delivered to fourteen settings. This service had been relied heavily on over the past month. There was Council support in securing PPE and health support to go into settings where issues arise There were concerns that workforce and provision within the  ...  view the full minutes text for item 8.

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

8.1  Ian Williams introduced the report updating the Committee on the current Finance and Corporate Resources Directorate Risk Register of the Council as at April 2020. 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.

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

RESOLVED to note the quarterly update on Treasury Management.

9.1  Michael Honeysett introduced the fourth of the treasury management reports relating to the financial year 2019/20 for the Audit Committee. The report set out the background for treasury management activity from January 2020 to March 2020 and the action taken during this period. Michael Honeysett told the Committee that there were to be no changes to the treasury management strategy. He stressed the need to stay as cash light as possible, monitoring income. In the current circumstances it was not now possible to short term borrow from other local authorities.   

RESOLVED to note the quarterly update on Treasury Management.

RESOLVED to note the Audit and Anti-Fraud’s progress and performance to 31 March 2020.

10.1  Michael Sheffield introduced the report asking the Committee to consider the performance of the Audit and Anti-Fraud Service, the areas of work undertaken, and the information on current developments in Internal Audit and Anti-Fraud, together with statistical information about the work of the investigations teams.

RESOLVED to note the Audit and Anti-Fraud’s progress and performance to 31 March 2020.

RESOLVED to note the summary of the Council’s corporate arrangements for whistle blowing, with cases received in 2019/20

11.1   Michael Sheffield introduced the report summarising the Council’s corporate arrangements Whistleblowing and providing the Committee with an update on the cases received in 2019/20.

RESOLVED to note the summary of the Council’s corporate arrangements for whistle blowing, with cases received in 2019/20

RESOLVED to note the Annual Report of the Audit Committee set out at appendix 1.

10.2  Michael Sheffield told the Committee that information on this was drawn from a number of sources such as the budget, transactions carried out, proposed changes to governance arrangements, issues arising from horizon scanning, counter fraud and risk. Areas such as climate change, governance of companies and residential care had also been included.

10.3  Michael Sheffield told the Committee that all audit staff were on standby to be redeployed to essential services. There was contingency in the plan to cover this situation.  At present audits continued to be carried out. The Chair asked to be kept updated on this.

  Action: Michael Sheffield

10.4  Councillor Maxwell asked how the current crisis would be integrated into the Plan.  Michael Sheffield told the Committee that plan was subject to change and that there was flexibility in this regard with some audits dropping out and the opportunity to add others that arise.

RESOLVED to note the Annual Report of the Audit Committee set out at appendix 1.

RESOLVED to approve the proposed Internal Annual Plan 2020/21 and the key performance measures  

13.1  Ian Williams introduced the report asking the Committee to consider and approve the propose Internal Audit Plan and resources for 2020/21 as part of its role in overseeing corporate governance. Ian Williams referred to the note circulated to members of the Committee on the closure of 2019/20 accounts closure update, incorporating changes to the process as a result of Covid.

13.2  Michael Honeysett told the Committee that the aim was to close the accounts by May 2020.  However, this would depend on some issues around valuations. The Auditors were aiming to complete Annual Accounts by July.  Lucy Nutley confirmed this timetable, subject to staff availability. Liaison was underway around land and buildings valuations and pension’s valuations.

RESOLVED to approve the proposed Internal Annual Plan 2020/21 and the key performance measures 

RESOLVED to note the work programme of the Audit Committee.

14.1   The Committee considered the work programme for the Audit Committee. 

Councillor Odze considered that in the current circumstances and given the  long period up to the October meeting an additional meeting of the committee be added.  The Chair agreed the need to scrutinize the current situation around Covid whether it be through a formal meeting or a deep dive. Further, there would need to be flexibility around the work programme and he would consult with Ian Williams on this.  

RESOLVED to note the work programme of the Audit Committee.

RESOLVED to note the activities undertaken so far to review the corporate approach taken to making insourcing decisions in the authority and to agree the next steps as set out in section 5 of the report.

15.1  The Chair introduced the report, referring to the fact that the Council had a strong in-house team and that this gave resilience during the crisis.  He stressed the need to have proper processes in place to facilitate insourcing and said that there were robust ways to do this. There remained an issue in regards to work on the performance assessment and review, in particular in relation to the front line end of care.

15.2  Councillor Gregory referred to the vulnerability of agency staff and importance for all of direct employment on a permanent basis.

15. 3  Rotimi Ajilore told the Committee that agency staff were working as normally and continued to be paid during the pandemic and that there was no furloughing of these staff. He stated that support was being provided to suppliers and providers and work was underway across London to support GLL. He stated that some services would be insourced but that some would not, given the structure and complexity of these contracts.

15.  The Chair thanked Rotimi for his work in producing the report on insourcing.  

RESOLVED to note the activities undertaken so far to review the corporate approach taken to making insourcing decisions in the authority and to agree the next steps as set out in section 5 of the report.