An inspectorate of the Department for Work and Pensions.

Report

Charter Mark - Awarded for excellence

Findings (continued)

Making sure the strategy works

2.557 Making sure the strategy works means planning action, taking action and measuring the impact of that action to help plan future activity.

2.558We assessed Torbay’s performance in Making sure the strategy works by looking at the areas of:

Corporate strategy

2.559 Torbay's strategic plans are currently linked to the detailed BV performance plan. It sets out Torbay’s 5 year programme of BV reviews against the 4 main BV principles of consulting, comparing, challenging and competing.

2.560 A new set of corporate policies were agreed in October 2000 to reflect the aims of the new council administration:

2.561 The DA Management Letter of December 2000 comments that a number of high level goals and priorities have been formulated by Members, although a good deal of work has yet to be done to convert these into clear and measurable objectives and targets. These objectives are essential to the production of individual service plans. Further, this work should only be seen as the first stage in achieving the significant cultural change required under Best Value. The key challenge for Members will be to ensure that the service planning process is dynamic, supported by regular performance monitoring with systematic action taken to secure service improvement.

2.562 To assist in this process, DA recommended that Torbay develops a performance management framework. It is intended that the framework will:

2.563 We note that there has been limited progress in target setting for benefits work. The number of targets set is extremely limited. Meaningful targets would enable the exchequer and benefits section to more effectively demonstrate continuous improvement. Introducing targets will mean significantly more resources will have to be committed to management checking to monitor and report against these targets.

2.564 We were encouraged by the increase in Member involvement, and recent papers to the scrutiny committee, including papers on the recent change to the incentive scheme. This follows criticism in a 1997/98 DA report that stated "there is no reporting to Members on HB fraud" and contained a recommendation that this be rectified.

2.565 However, there has been very limited reporting to Members on the levels of HB debt. This is disappointing given the increasing levels of debt and lack of activity in this area.

2.566 Each directorate has also prepared a service plan for the period 2001-2003. The corporate services plan is broken down into 3 sections on:

2.567 There are additional papers that set out the plans for human resources and a separate exchequer and benefits strategic plan covering November 2000 to March 2004, which is reviewed every 6 months. The main objectives of the plan are:

2.568 Many of the comments made in our report will affect the plan.

Fig. 2.84: BFI findings against the exchequer and benefits strategic plan
Torbay’s proposals BFI findings

Individual sections to review processes and procedures.

A key part of this work is looking at the processes that directly affect claimants. The current delays in the actioning of work on the benefits sections is having a significant detrimental effect on customer service. We make recommendations to improve this. We also identify duplication of work in the area of verification and assessment, and make a number of recommendations to improve counter fraud working practices.

Review the roles of systems function within E and B.

We have raised some significant security concerns about the role of systems in the area of benefits.

Review the managerial and supervisory roles and responsibilities.

We identify the lack of accountability at a number of levels, mainly as a result of a failure to carry out management checks. We make specific recommendations regarding the need for managers to adopt a far greater pro-active approach to forward planning.

Source: BFI analysis

2.569 However, of the main targets affecting benefit work directly, we were concerned at Torbay's ability to reach its stated target on:

2.570 As cited elsewhere in this report, the current performance against the 14 day target is poor and the 10% management checking was not in place at the time of our visit.

2.571 We noted Torbay’s efforts to improve the level of prosecutions and other penalties, through the recruitment of an experienced staff member, and the commitment to training, specifically PINs.

2.572 We were not clear about the overpayments target for recovery of one million pounds. Over the period of the plan, this would equate to just £250,000 per year. This would be less than current achievement. If the recommended improvements set out in this report are to be realised, the target needs to be far more challenging than this. We feel that a much better target would be a percentage target of current debt and a recovery target for old debt, looking to reduce the overall debt position on a rolling basis over the lifetime of the plan.

2.573 There is a corporate LA Training and Development Strategy, dated November 2000. This sets the main objectives for Torbay to ensure that:

2.574 We identify instances throughout this report where training has been delivered to support processes in benefit administration. However, in some areas of fraud awareness work Torbay needs to maintain better training records. We also cite instances where job appraisals are not completed on time. This is a fundamental part of staff development, and should be addressed immediately.

Corporate management

Members’ involvement

2.575 It is important that council Members are kept informed of performance in benefits and counter fraud work, and Members are properly accountable for delivery of a secure and good quality service.

2.576 Exchequer and benefits report direct to the scrutiny sub-committee on the majority of issues on benefits and counter fraud work. The scrutiny committee is therefore the first port of call for reports from exchequer and benefits. The leader of the council as chair of policy has authorised the chair of the scrutiny committee to look at and consider all papers submitted by benefits. The chair of the scrutiny committee then refers relevant issues on, with recommendations to policy to approve or otherwise. Policy consists of all the chairs of the other committees.

2.577 Exchequer and benefits had presented reports to scrutiny as shown in Figure 2.85.

Fig. 2.85: Exchequer and benefits reports
Date Report Topics Included

7th March 2000

Update on benefits and fraud activity.

Accommodation, verification framework, claim processing, fraud.

4th April 2000

HB overpayment recovery.

Update following the setting up of the overpayment recovery unit on 1/4/99.

4th April 2000

Update on benefits and fraud activity.

Customer service survey, claims processing, fraud.

13 June 2000

HB overpayments.

Limited information on the recovery of RA overpayments for the 1999/00 year.

8 August 2000

Update on benefits section.

Improvement in the processing of claims.

8 August 2000

Benefit fraud workload update.

General workload and sanctions progress.

24/10/00

Update on benefits section.

Status of claims clearance, limited information on weekly overpayment recovery.

24/10/00

Benefit fraud workload update.

General workload and sanctions progress.

19/12/00

The BFI.

Setting out the BFI inspection programme, including a summary of main findings of BFI reports to date.

21/1/2001

General meeting of the scrutiny committee.

General update on benefits and fraud work. This indicated that benefits was struggling to meet the 14 day performance target. The fraud update provides details of publicity on the hotline.

24/4/01

IA output report, 2000/01.

Outcome of IA work and achievement against performance targets.

Source: Torbay

Strategic approach to fraud and error

2.578 A statement expressing an organisation’s strategic objective gives management and staff a clear sense of direction, purpose and a focus for their energy and enthusiasm.

2.579 In its March 1999 document, A new contract for welfare: SAFEGUARDING SOCIAL SECURITY, the government makes clear that an objective to reduce fraud and error needs to be set as a goal on which all staff delivering social security can focus.

2.580 HB and CTB delivery and counter fraud operations have their place in an LA’s corporate and departmental framework. It is important that there is consistency of purpose within this framework. Senior management needs to state clearly that the benefits and counter fraud sections will be able to focus on reducing fraud and error. This needs to be clearly understood by all those managing or delivering the service.

2.581 DA has been quite critical in the past on Torbay's lack of controls for Members and staff. In its 1997/98 Countering HB fraud report DA said there was scope to strengthen the existing anti-fraud arrangement, recommending the introduction of an anti-fraud and corruption policy. DA's 1998/99 Review of fraud and corruption report stated that "there is no hospitality register for Members and no register for interests for staff".

2.582 We were therefore pleased to identify clear progress in this area. There is evidence of appropriate strategies for counter fraud work which are consistent with the government’s strategies to combat fraud and error. There is a Council Fraud and Corruption Policy dated May 1998. There is also a specific HB-related fraud and corruption statement of the same date. The report covers prevention, detection and investigation. We also noted that following audit recommendations on staff declaring any personal interests, a policy was designed in 1999 to address this issue. All staff were required to complete a declaration stating any relations with:

2.583 We have commented on the reasonably successful implementation of the verification framework. This report shows that whilst there are areas where Torbay are clearly failing, VF has been implemented and in the vast majority of areas, to a good standard. The fact that the backlog of work is now being managed, should provide Torbay with the time to address the verification issues raised in this report.

2.584 However, we were concerned about the overall approach to forward planning. Although we recognise the work completed on fraud awareness training, we are concerned that major areas of work are not analysed to inform all staff of the risks of fraud entering the system. Particularly areas of weakness are the lack of feedback to assessors on the data matching exercises and the minimal analysis of fraud referrals from the benefits section.

2.585 We were pleased to acknowledge the effective relationships between Torbay and BFIS. The most graphic example of this is the joint working programmes conducted with BFIS, which has led to successes highlighted in Putting it right. The joint trial of the changes of circumstance form was also a positive initiative.

2.586 Torbay operates a corporate whistle blowing policy dated September 1999 which sets out

2.587 The whistle blowing policy advises staff of the access to internal and external routes for raising concerns, and publicises the confidential number for the charity organisation, Concern at work.

2.588 There is also a corporate document on Prevention of harassment and bullying at work dated July 1999. The sets out that the fact that anyone feeling that they have been:

…harassed or bullied at work should feel confident that any allegations will be taken seriously and investigated in confidence.

2.589 There is also a document produced in 1997 that sets out the disciplinary procedures, which differentiates between general misconduct and gross misconduct. It details the penalties that can be imposed and sets out the appeal procedures.

2.590 The development of a prosecutions and sanctions policy is most welcomed. The work in this area shows a clear commitment to tackling serious benefit fraud head on. The efforts to publicise these achievements can only help deter and prevent benefit fraud. However, Torbay now needs to consider how the fraud section deals with more mundane fraud referrals, to ensure that all relevant action is taken on all cases, regardless of the potential financial benefits to the council.

2.591 More immediate work is required in the area of overpayment recovery and, while we welcome Torbay's efforts to concentrate recovery on recently identified debt, measures need to be considered to tackle old debt.

2.592 We were pleased to see that checks are made at recruitment to identify any relevant issues regarding potential employees before an appointment is confirmed.

2.593 We were pleased to see regular landlord forums. These meetings are used to inform landlords of changes in the benefits system, so that they are fully aware of their duties and responsibilities in respect of the supply of information. This work needs to be supplemented with a landlord pack. Work had been undertaken on this, but unfortunately the product was not delivered.

2.594 We have noted the success of the benefit hotline. The results on this key anti-fraud initiative are encouraging.

2.595 We noted that Torbay had made use of the do-not-redirect scheme operated by Royal MailXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XX

Training

2.596 We have covered training in some detail throughout the report, generally noting good levels of training. Torbay has a training budget for HB and CTB staff, but had not spent the budget in any of the last 3 years.

IiP

2.597 In 2000/01 Torbay will continue to work towards IiP, but actual progress has been fairly slow. The current financial year was seen as a chance to consolidate progress to date, but there was no intention to push for IiP accreditation during the current year. The next 2 major milestones on the action plan are to:

2.598 Given that Torbay sees the 2001/02 year as one of consolidation on IiP, it is difficult to see how it will be ready for the final assessment in March 2002.

Best Value

2.599 Torbay has compiled a Best Value performance plan for 2000/01 as required by the Audit Commission. The plan is to be updated every year and published by 31 March each year. The current plan lists 6 main priorities:

2.600 Exchequer and benefits fall into year 4 of the Best Value programme. This should give Torbay the opportunity to address the issues and recommendations in this report and help Torbay to strive to attain performance standards in line with the top 25% performing authorities. Torbay recognises this opportunity and will be addressing many issues detailed in this report in an action plan that covers both benefit administration and counter fraud work.

2.601 One of the main aims identified in the plan is ‘placing high priority in fraud prevention’. It lists one of its successes in the previous year as having ‘worked in partnership with the BA in our connections first stop shops’.

2.602 It is encouraging to see that the exchequer and benefits command are included in such a document. We comment elsewhere on the individual service plan.

2.603 We detail below our analysis of progress against the Best Value performance indicators (BVPIs). Reporting against these PIs will mean that Torbay needs to ensure that reliable management information is available.

Fig. 2.86: Torbay's progress against BVPIs

BVPI

Has PI been developed?

BFI comments on:
Target set Torbay’s ability to provide accurate data on PIs through MIS

Speed of processing claims

      

Average time for processing new claims.

4

49 days has been set for the 2001/02 year. This is against the estimated performance for the 2000/01 year of 51.3 days.

With the current backlog, and the deteriorating performance in the 14 day performance target on new claims, it is unlikely that this will be achieved in the current financial year.

Average time for processing notifications of changes of circumstances.

4

9 day target set for the 2001/02 year. This is against the estimated performance for the 2000/01 year of 10.8 days.

The current backlog is likely to have a negative impact on this target being achieved.

% of renewal claims processed on time.

4

65% target set for the 2001/02 year. This is against the estimated performance for the 2000/01 year of 60% (against a target of 59%).

With the current backlog, and the deteriorating performance in the 14 day performance target on renewal claims, it is unlikely that this will be achieved.

Accuracy

      

% of cases for which the calculation of the amount of benefit due was correct on the basis of the information available at the time of determination, for a sample of cases checked post-determination.

4

95% target set for the 2001/02 year, which is unchanged against the estimated performance for 2000/01.

The most recent return made for 1 April 2001 to 30 June 2001 resulted in 125 cases being checked, with only 2 (1.6%) resulting in a financial error. This is well within target.

Cost

      

Average cost of handling an HB or CTB claim, taking into account the different type of claims received.

4

£99.74 target set for the 2001/02 year. This is against the estimated cost for the 2000/01 year of £104.92 (which was the target for that year).

We have no evidence to comment here, as we did not undertake any detailed analysis in this area.

 

BVPI

Has PI been developed?

BFI comments on:
Target set Torbay’s ability to provide accurate data on PIs through MIS

Customer satisfaction

 

 

 

Measuring customers’ views on key aspects of delivery, covering accessibility, staff helpfulness, standards of communication and information.

 

 

X

There was a customer satisfaction survey undertaken, prior to the introduction of the new style benefit application form. This involved 100 customers randomly chosen from the caseload. The survey was conducted by telephone to allow for an immediate response, with 5 main questions asked.

The overall level of service was rated as satisfactory or better by 79%. Helpfulness of staff was described as satisfactory or better in 96% of cases. 28% felt that the notifications issued to them could be improved, but 80% felt that their claim had been dealt with satisfactorily or better. Requests for supplementary information was clear for 86% of claimants.

Overpayment recovery

 

 

 

% of recoverable HB overpayments recovered during the year.

4

67% target set for the 2001/02 year. This is against the estimated performance for the 2000/01 year of 55% (against a target of 65%).

The actual recovery rate for the 2000/01 year was reported as 72.8% of all debt raised in that year.

Security

 

 

 

Whether the LA has a security strategy which commits it to the active use of prescribed initiatives and is communicated to all staff and is demonstrably acted upon.

4

There are a number of documents that support an overall strategy for security.

 

 

 

 

We make note in this report on the anti fraud strategy, IT security strategy, sanctions policy, code of conduct, whistleblowing policy and other documents that are issued to staff to support the active pursuit of a secure benefit paying system. Whilst we acknowledge some good activity in this area, we do have concerns around system access for the systems team and a number of shortfalls with the current AS 400 system.

Source: BFI analysis

Performance monitoring and assurance

2.604 We were pleased to note that there are weekly minuted meetings of the senior management teams on the benefit and exchequer team. There is a brief work update provided on each set of minutes. The minutes also document decisions made at this level, as well as updates and reminders on areas of topical interest. We also noted regular meetings between the benefits manager and the supervisors, used to disseminate information from the senior managers meeting, as well as discussing specific benefit issues. Again these minutes were well documented, covering issues including telephone service, counter rotas and update on the claim form.

2.605 Although this meeting structure allows issues to be discussed and for decisions to be disseminated, there is little other intelligence to help Torbay make informed management decisions about performance.

2.606 The lack of individual target setting and management checking detailed in this report also makes it difficult to assess how well individuals or teams are performing. Without this intelligence, there is little that can be done in a structured way to raise standards.

2.607 There is little in the way of documented evidence of option appraisal to inform the decision making process. We identified, for instance, the duplication in using verification officers and assessment staff to process claims. There does not appear to be any innovative approach to resolve this issue, although individuals told us that they do have their own ideas on what the solution might be.

2.608 Torbay had a backlog at the time of our on-site work, despite the extensive use of overtime. In 2000/01, Torbay committed £28,000 to the payment of overtime, equating to 3.3% of their total salary cost. Overtime was mainly used for day-to-day work.

2.609 The backlog is currently making it difficult for management to effectively control the workload. We provide instances where priorities are not being accurately identified and actioned. There is little assurance about progress of work in the backlog.

Procedures

2.610 The social security system in general can be regarded as complex and some of its rules and regulations complicated. HB and CTB with some 4.5 million claimants and £13.7 billion of expenditure nationally is an important component of the benefit system, and it is important that staff and managers responsible for secure and accurate administration are supported and guided by effective procedures.

2.611 As a minimum standard procedures must comply with Regulations, and they must be understood by both practitioners and managers. A complete volume should be available for each section or work group.

2.612 It is good practice to have procedures written in plain English and for them to cover all aspects of benefit delivery, not just those which have a basis in law. They should be reviewed and updated in a controlled environment.

2.613 When we looked at the procedures in place to safeguard the system from start to finish we found that they were generally comprehensive across the benefits and fraud operation. There were detailed procedures available for all assessment areas, overpayments and fraud. We were also pleased to see that in 1999/2000, all benefits staff were provided with a summary of all HB adjudication circular issues. This is an excellent initiative which was started by the systems team, with ongoing commitment by the benefits manager.

2.614 The Fraud section is currently in the process of re-writing the procedures that currently exist. This is mainly to take account of the new incentive scheme that Torbay signed up to for the 2001/02 year. The visiting team also have detailed procedures in place that cover all relevant areas of their work.

Internal Audit

2.615 IA can provide Torbay with assurance that its systems and procedures are operating as intended. This is supported by DA, which has recently noted a significant improvement in the work of IA.

2.616 The current strategic audit plan is derived from a basic risk overview based on factors such as previous audit findings and levels of expenditure within each area. However IA is now developing a new audit risk analysis to improve the effectiveness of the prioritisation and planning process.

2.617 Figure 2.87 shows the number of IA days spent on benefit administration and benefit fraud matters over the last 3 years.

Fig. 2.87: IA activity breakdown
  1998/99 1999/2000 2000/01 2001/02*

Total number of IA days used

2,161

2,293

824

1264*

Number of IA days used on HB and CTB administration

114

102

96

100*

Number of IA days used on counter fraud work

Time not split into discrete audits

23

12

16*

Benefits and fraud as a percentage of total

5.3%

5.5%

13.1%

9.2%*

Source: Torbay

*estimated

2.618 IA has been relatively active in the area of benefits. It has undertaken a number of reviews resulting in reports on:

2.619 In addition to these individual pieces of work, IA has been fundamental in the area of verification compliance, producing quarterly reports on the results of its testing in this area.

2.620 We are pleased to note IA's commitment to HB. Benchmarking figures provided by CIPFA suggest that of 60 unitary authorities, Torbay commits the fourth highest levels of IA days to HB. Indeed more than two thirds of these authorities commit less than half the days that Torbay does. Of the 13 ‘family’ authorities identified by CIPFA, Torbay committed by far the greatest days, and indeed double that of any within it’s ‘family’ group. We commend Torbay for committing this level of IA involvement to HB/CTB. The total expenditure on HB and CTB equated to around 25% of the Gross Revenue Expenditure in the last two years, so this high level of IA commitment in this area is appropriate.

2.621 We record action against IA recommendations throughout the report.

External Audit

2.622 EA is appointed by the AC. It is independent of Torbay and has statutory duties to enter an opinion on the LA’s accounts and comment on the efficiency and effectiveness of the LA’s services. DA are Torbay’s external auditors.

2.623 There have been the following DA reports, in addition to the yearly management letters, on the area of HB and CTB since 1997:

2.624 DA told us that it now relies on the work of IA. DA's view is that the quality of the work provided by IA has significantly improved over the last 2 years.

2.625 We comment throughout this report on the responses to DA findings, and Torbay's progress. Generally Torbay has responded well to DA recommendations, but weaknesses remain in:

2.626 Positive progress has been made in:

Future IT development

New Benefit system

2.627 Torbay has purchased a new windows based benefit system from it’s current software supplier. NNDR is already using the new system. For benefit staff it is intended that a test system will be set up so staff can get used to the system before it goes live. This will be available in the HB training room.

2.628 IBS has produced a project plan for the implementation of the new system and there is a project team led by the senior benefits and exchequer manager. There will be a user team set up for benefits and fraud to ensure that users are fully involved in the implementation. IBS will provide 45 days training for Torbay’s training team, who will then cascade relevant information to staff. It is intended that all existing cases will be transferred to the new system.

2.629 Early indications from those that have used the new system is that it is similar to the current version and staff should not find the changes too difficult, and that the help facility is very good. Staff are already used to sending emails, using word and excel, which will help them when moving to a windows based system.

2.630 The new system will enable staff to amend CT as well as HB. There are currently two staff that are cross training on CT and Benefits, which has achieved better working relationships between the two sections. It is hoped that this will assist in the smooth implementation of the new system.

2.631 Before deciding on the new system they visited 8 sites and looked at IBS and First software in operation.

2.632 The cost of the new benefit system will be £127K, which includes workflow and will be the latest version when they go live.

Data image processing(DIP)

2.633 Torbay planned to go live with DIP on benefits by September 2002. The Council already has a DIP system called Fortis that other departments of the council use. In order to operate DIP, a link will be required to the IBS system. Torbay will invest in around 5 scanners which will be situated in each office. IBS already has a workflow system and NNDR are already using 2 scanners. Funding is needed for the implementation, extra scanners and training. The project manager will be responsible for development of a training plan. There is no strategic plan, as Torbay plans to evaluate the use of the system in NNDR.

2.634 The benefits of DIP are seen to be a quieter and calmer working environment, ultimately saving time on filing and retrieval. Work will be allocated on the system which will aide improved case management. It is also hoped that the new system will assist in target setting and monitoring of work.

2.635 We did not include the implementation of the new systems within the scope of this inspection. However, Torbay need to ensure that they have cleared the current backlog of work before considering implementing either the new benefits system or the DIP system.

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