Action underway as OHAC payments audit raises ‘significant concerns’

Orkney Islands Council is taking action to address concerns over the procedures in place to monitor payments made through Orkney Health & Care.  

The concerns came as members of the Council’s Monitoring and Audit Committee scrutinised an Internal Audit report which had identified that there was a fundamental lack of governance in place – but that significant improvements were already underway. 

Amongst others these payments related mainly to agency workers, fostering and adoption fees and out of Orkney placements.  

The report described how there had been a lack of policy and procedure documents or effective authorisation and approval controls in place, to monitor and govern payments made across those areas. 

This had meant that there had been some lack of control in the level and type of spend being authorised including care fees being paid that were not in line with policy and expenses being paid without appropriate authorisation. 

It was noted in the report that spend has increased substantially across many of the areas concerned over the last five financial years. An increased reliance on agency staff saw a growth in spending reaching £4.5 million in 2023/24, a situation mirrored in local authorities throughout the UK.  

The need for immediate improvement has been recognised, with Orkney Health and Care taking a number of steps including the drafting of a policy around payments for Agency Workers and a revised policy on Fostering, Kinship and Adoption Allowances, the latter of which came in front of elected members at Policy and Resources committee this week

The report included 22 recommendations in total.  The report was held in private due to the potential for individuals – including service users - to be identified.

Chair of the Monitoring and Audit Committee Councillor Lindsay Hall said: “This was undoubtedly a report which gave Councillors significant concern. The issues raised were given a good going over by the members of the committee, with many difficult and uncomfortable questions asked of the staff team present. 

“We were reassured that, in most cases, the issues it raised had been identified and taken forward for action before the report came before us – with some actions already completed.  

“It was clear to elected members that this was not about any individual wrongdoing but a lack of clear processes and policies - and that significant steps are already underway to make improvements in this regard.” 

A follow up report will come back to the Monitoring and Audit committee later this year.