Agenda item

Report of the City Treasurer

8.1       Moira Mackie, Interim Shared Services Director for Audit, Fraud, Risk and Insurance, introduced a report that contained details of the work carried out by the Council’s Internal Audit service in the reporting period.  It found that in the areas audited internal control systems were generally effective although one no assurance report had been issued.  One follow up review completed in the period confirmed that the implementation of recommendations had been undertaken. 

8.2       The committee noted that the one no assurance related to an audit of Children’s Disability Services - Direct Payments.  The audit identified a number of control weaknesses in the existing system.  It was further noted that since the audit was finalised the service had confirmed that actions had been taken to address the weaknesses identified.  A follow-up audit will be undertaken in January 2017 to confirm that the agreed actions have been implemented as stated by the service.

8.3       The committee further noted that in addition to the internal audit work completed in the period, a technical claims file review had been undertaken by the Council’s insurers to provide an analysis of the Tri-Borough Claims Handling Service as measured against current best practice.  The service handles Employers and Public Liability claims up to a delegated authority of £100,000 for Westminster.  The committee welcomed the news that the review concluded that the service provided was effective, which is the highest opinion given in technical reviews, with the controls considered to be appropriate and to maintaining risk within acceptable parameters.

8.4       The Committee asked for details of the sort of claims being made up to the delegated authority level and whether there were many claims to this value.  The committee also asked officers whether they believed that the value at which they were able to determine claims was set at the right level.  Neil Walker, Assistant Head of the Tri-Borough Insurance Service, informed members that the City Council self-funded claims up to a value of £100,000.  The types of claims that the service handled often included claims for tree root damage.  The delegated authority level of £100,000 for Westminster had been in place for some time. He advised that a procurement exercise was currently underway for the award of a contract for the insurances which includes as part of the evaluation delegated authority levels for claim handling.  Bidders have the option to quote for different deductible levels.  At the Royal Borough of Kensington and Chelsea the delegated authority level is £250,000, in line with their deductible.  He considered that there were benefits, dependent upon the evaluated merits of the bids, in the Council having increased authority in determining claims as it was Public funds.

8.5       RESOLVED:  That the report be noted.

8.6       ACTIONS:

1.    Provide a breakdown of the claims paid out this year by Westminster up to the delegated authority of £100,000.

2.    The committee would like a note on the outcome of the procurement for a provider to handle Employers and Public Liability claims above the delegated authority level once a contractor has been chosen.

(Action for: Neil Walker, Assistant Head of the Tri-Borough Insurance Service)