An inspectorate of the Department for Work and Pensions.

Report

Charter Mark - Awarded for excellence

Resource management

5.1 Benefits administration has to be set within the broader context of a local authority’s overall strategies and responsibilities. Members, managers and staff should therefore have a clear sense of direction, purpose and focus for their work. Members and senior officers should also have assurance that HB and CTB administration is effective and secure.

5.2 The council met 12of the 16 enablers for Resource management.

Performance enablers

Managing the Benefits service

5.3 Weymouth and Portland Borough Council met all 3 of the enablers.

5.4 In 2003, the council published a Corporate Plan 2003-2008 setting out its strategic objectives, key aims and priorities for improvement. The Corporate Plan formed the basis of the council’s business planning and performance management framework, and was reviewed on a regular basis. The council also published an annual Performance Plan setting out its targets and intentions for service delivery and improvement. In addition, in 2004 the council produced a Transformation and Improvement Plan in response to recommendations made following its Comprehensive Performance Assessment.

5.5 The next level in the council’s performance management framework required each service to produce its own set of plans. For example for 2005/06, the Benefits service produced:

5.6 Clear links had been drawn in the Revenues and Benefits Unit Work Plan between the specific key objectives, targets and measures for the service, and the wider corporate aims and priorities in an attempt to ensure that service objectives were aligned with those of the council as a whole. The council operated a Staff Development Scheme to encourage staff awareness of the impact of their individual contributions towards the achievement of corporate aims and priorities.

5.7 The Benefits service had set itself targets that were comprehensive, stretching, and sought continuous improvement. These targets were reviewed annually, and agreed by Members and senior officers before being adopted.

5.8 The council was proactive in monitoring its achievement against plans and targets. Senior officers met on a weekly basis to discuss progress against corporate priorities and the council’s improvement plan. Senior officers received reports of performance against key Benefits service targets on a monthly basis. A corporate performance management system was used to collate information and generate reports to a committee of Members on a quarterly basis. We were told that any failure to meet targets was taken seriously, with Unit managers required to explain to Members and senior officers any reasons for the failure, and the actions taken to remedy the problem.

5.9 The Revenues and Benefits Manager had started working on a risk register in conjunction with the council’s Internal Audit service. Risks had been identified and documented. However, further work was required to establish how these risks were to be managed. This had been put on hold temporarily due to resource problems but was planned to be completed before the end of 2005/06.

5.10 We were provided with a copy of the council’s IT Disaster Recovery Plan for the Benefits service. The document was undated but we were told that a contract had been in place for approximately 10 years with an external provider, for emergency restoration of IT functionality. However, no testing of the plan had been carried out for a long time.

5.11 In addition, we were told that a reciprocal agreement was in place with West Dorset District Council where one council would help the other following any emergency incident. This agreement had not been formalised or tested but the council accepted the need to do so. It considered the planned WestWey Benefits service partnership would provide an ideal opportunity to do this.

Monitoring performance

5.12 Weymouth and Portland Borough Council met both of the enablers.

5.13 The council provided accurate and timely data returns to the Department reporting on performance measures, management information and the Housing Benefits Matching Service. It also completed self-assessments against the Performance Standards.

5.14 Monitoring the performance of the Benefits service against key targets was the responsibility of the Support Services team. Its duties included:

5.15 The Revenues and Benefits Manager was accountable through quarterly and annual reports to Members and senior officers for any non-achievement of targets. The council purchased a reporting software tool to supplement its Benefits IT system. This provided the means to run ad hoc management and exception reports to help identify problem areas where targets were not being achieved. Monitoring mechanisms were clearly operating well.

Providing for a skilled and competent workforce

5.16 Weymouth and Portland Borough Council met both of the enablers.

5.17 The council provided us with a range of up to date policies and procedures covering recruitment, induction, training and diversity. These included both corporate documents and policies tailored specifically to meet
the needs of the Benefits service. For example, these included:

5.18 Pre-appointment checks were carried out on potential new recruits.
These included verifying:

5.19 On appointment, staff attended induction training sessions covering both corporate and service specific material.

5.20 The Code of Conduct for Employees was comprehensive and included as an appendix a declaration of interest form to be completed on accepting a position with the council. Staff confirmed they had completed forms and were aware of the need to notify any change in personal circumstances.

5.21 Although the Staff Development Scheme had been in operation for a number of years, it was reviewed in 2005/06 in an effort to make clearer the links between individual and corporate targets and objectives. Individual staff training needs were linked to corporate objectives.

5.22 The council’s Human Resources service was proactive in carrying out quality checking and random sampling to test compliance with the various recruitment, selection and staff development policies and strategies.

5.23 The council was supportive of staff studying for relevant professional qualifications, either in technical or management development areas.

5.24 The Staff Development Scheme encouraged staff to register their interest in specific training or qualifications. This information coupled with the results of management checking was used by the Benefits service to draw up individual staff training plans. Records were kept detailing training courses attended and courses still outstanding. Evaluation of training attended was also carried out.

5.25 The council was proactive in working in partnership with other local councils to maximise opportunities for training and had made successful bids for Departmental funding. One bid helped finance the appointment of a Dorset Area Training coordinator who arranged all external training courses.

5.26 Another initiative included buying into quarterly training updates provided by an external consultant, ensuring that staff were kept up to date with current and future changes in legislation and Departmental guidance. This was supplemented by the council’s subscription to an external supplier’s updating information service made available electronically to all staff.

5.27 Staff turnover within the Benefits service was low so new entrant training was not regularly required. However, arrangements had been made to enable the council to buy into a structured 13-week training programme run by a neighbouring council when necessary.

Value for money

5.28 Although there is no definitive costing structure for benefits administration, local authorities should have regard to Departmental guidance which does cover efficiency.

Performance enablers

Achieving value for money

5.29 Weymouth and Portland Borough Council met one of the 2 enablers (E58).

5.30 The council did not use cost per claim calculations as a key performance indicator for planning improvements to its Benefits service. However, costs of the service were broken down into certain components for example, salaries, and were closely monitored as part of the budget monitoring mechanism and reported to members on a monthly basis.
(Low Priority Recommendation 15)

5.31 When considering setting annual budgets for individual services, Members considered any likely impact on the service of reducing available funding. Members had been supportive of the Benefits Service, for example, approving the purchase of new IT to improve the service provided to customers.

5.32 The council was proactive in seeking opportunities to work jointly with other local authorities and external partners to achieve efficiency and economic benefits. The council demonstrated a particular strength in partnership working in the Benefits service, namely in 3 areas:

5.33 The desire to improve its Benefits service drove the council to examine its capacity for change based on its existing resources, taking into account its strengths and weaknesses, and evaluating possible options. For example, the lack of sanction activity had been criticised in our Comprehensive Assessment report dated 2004. The council took stock of its resources and levels of expertise, evaluated its options and decided to join an existing fraud partnership. While the council had only been a member of the partnership for around 6 months, we noted increased levels of sanction activity.

5.34 We were told that both councils forming the WestWey partnership were in the process of reviewing and evaluating their processes and procedures in preparation for the merger. The partnership had also enlisted the help of an independent consultant to provide impartial advice to ensure the best policies and procedures were adopted by the new organisation to maximise efficiencies and economies.

IT systems

5.35 Weymouth and Portland Borough Council met one of the 2 enablers (E59).

5.36 The Benefits IT systems supported all aspects of accounting for and payment of benefit, and had effective interfaces with other relevant council
IT systems. The systems enabled the council to produce standard and ad hoc management information and exception reports to facilitate accurate performance monitoring.

5.37 The council’s Internal Audit service was closely involved in carrying out checks on the Benefits service. For example, the Benefits service carried out a monthly reconciliation of the Benefits IT system comparing benefits expenditure and likely subsidy received. Internal Audit, as a safeguard to provide high levels of assurance to the Section 151 Officer, checked this reconciliation each month. This process was introduced in response to a historical problem and was praised by the Audit Commission. The value of this reconciliation was borne out by no amendments or qualifications being required to the council’s subsidy claim in recent years.

5.38 The council had built up a good relationship with its IT providers, having been a customer since 1989, and was involved in user group and design team meetings. The Revenues and Benefits Manager met with the IT provider’s Account Manager on a regular basis to discuss any problems with the service. This was generally quarterly but could be more frequent. No records were usually kept of these meetings. Although there were no difficulties reported
with these arrangements, the council agreed that the planned creation of the WestWey partnership would be an ideal opportunity to formalise its arrangements to monitor and manage the contract arrangements with its
IT providers. (Low Priority Recommendation 16)

Assurance

5.39 Large numbers of HB and CTB payments pass through a council’s accounting and payment system. It is, therefore, essential that there are rigorous internal control mechanisms to provide assurance that the Benefits
IT system is secure.

Performance enablers

Internal control mechanisms

5.40 Weymouth and Portland Borough Council met 1 of the 3 enablers (E61).

5.41 We were provided with a copy of the Revenues and Benefits Unit Systems Control document which clearly outlined the protocols adopted by the council to ensure secure access to the Benefits IT systems. This also included procedural guidance on fault management and correction. The Support Services team securely controlled access to the IT systems using passwords and clearly defined access levels.

5.42 A good relationship had been built up with the council’s Corporate IT team who assisted with technical issues for example:

5.43 In addition, the council subscribed to a Help Desk service from its IT provider to assist with fault management and correction.

5.44 The council provided us with a copy of its Post Opening Procedures. This document outlined procedures required to ensure a secure process. It included details of controls to provide assurance that the systems for dealing with post were secure and staff were complying with them.

5.45 We observed the council’s post opening process and were generally satisfied that procedures were being followed. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX X:

5.46 The council carried out checks to validate the accuracy of payments before sending statistical returns to the Department. However, before it could meet the enabler it needed to carry out an additional check on a sample of cases. We recommend the council carries out a check to reconcile the dates input on the Benefits IT system with those on the claim form.
(Medium Priority Recommendation 13)

Secure administration

5.47 Weymouth and Portland Borough Council met both of the enablers.

5.48 The council’s Internal Audit service adopted a risk-based approach to auditing the council’s services. The Benefits service was classed as a fundamental system and therefore considered high risk and resourced accordingly. We looked at audit plans for the last 3 years and can confirm that in comparison to the council’s other fundamental systems the Benefits service was allocated the most time by a significant margin. For example, in 2005/06 the Benefits service was due to receive 28% of the total time allocated to auditing all fundamental systems.

5.49 Audit of the Benefits service covered a range of activities including:

5.50 The Benefits service and Internal Audit Service had built up good relationships with the Audit Commission.

5.51 Another example of the council’s proactive partnership working was illustrated by its plans to consider forming a consortium arrangement for Internal audit for 2006/07 to maximise efficiency and effectiveness by pooling resources.

5.52 The implementation of recommendations from internal and external auditors was monitored by the council’s Audit Committee which met every
2 months. We were told that Members took an in-depth interest in ensuring high-level recommendations were implemented, and were very supportive of the Internal Audit service.

5.53 We were provided with evidence to show that 2 out of the 3 recommendations made by Internal Audit in 2005 had been implemented. The other recommendation was outstanding due to help being required from the Internal Audit service, which had suffered resource issues due to staff sickness.

5.54 Internal Audit also operated a diary and reminder service for managers on outstanding recommendations to ensure they would not be forgotten.

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