FINANCIAL SAFEGUARDING

1. FINANCIAL SAFEGUARDING Simon Bleckly Justin Swale Warrington BC / Sefton MBC 11 October 2013

2. What are we going to tell you? • Background – why this area is important – and difficult! • Key issues: • Personalisation – personal budgets and direct payments • Client finances – appointeeship and court of protection • Financial risk and debt recovery • Corporate financial safeguarding • Whistleblowing • Case study – Sefton MBC • Questions

3. BACKGROUND • Legislation – “Caring for our Future” White Paper and Care & Support Bill • 2 key principles of relevance here: • Statutory duty on LAs to promote independence and well-being, reducing reliance on formal care • People should be in control of their own care – personal budgets and direct payments • Think Local Act Personal • Towards Excellence in Adult Social Care

4. BACKGROUND Draft Care and Support Bill: • Legal entitlement to a personal budget • The right to request a direct payment • Minimum eligibility criteria – councils must do written care and support plans • Councils must arrange / provide services to meet the minimum eligible needs • Councils to have lead responsibility for safeguarding “Self directed support is a key means of empowering people”

5. BACKGROUND • An increasing profile within Audit Plans: • emerging risk • Inclusion on strategic / directorate risk registers? • LA restructures: • Merger of children’s and adults’ services • Social enterprises for ASC

6. PERSONALISATION Personal budgets and direct payments • NW research 12/13: • Too complex and bureaucratic • Lack of flexibility and creative use of funding • Rules too rigid, LA still promoting “preferred providers” • Making it Real: • Risk enablement • Feeling in control and safe • Delivered through personal budgets and self-funding

7. PERSONALISATION Key risk issues: • Are there personal plans – are they regularly reviewed? • High cost panels – do they consider new approaches? • Effective brokerage services? • Are staff more comfortable promoting “virtual budgets”? • Allocating monies before personal plans agreed

8. PERSONALISATION Risks to the client: • Person controlling the account not using the money to pay for care • Family member gaining access to the account and misusing funds • Person controlling the account forges accounting records, payslips etc to claim for services not provided • Care worker / personal assistant claims for time not worked • Recipient of DP doesn’t spend the money on appropriate goods • Recipient does not maintain paperwork to demonstrate appropriate expenditure

9. PERSONALISATION Key controls (1): • Prepaid cards: • Transaction limits / limits on cashback • MCC blocking • Staff sharing passwords with users • Controls over refunds / ability to set up payments • Regular, risk-based auditing (IA role?) • Monitoring turnover of carers • Mandates for carer’s signatures • Evidence of transactions / wage payments • Large transactions on respite / holidays • Hours claimed checked to support plan

10. PERSONALISATION Key controls (2): • Staff vetting (CRB checks on PAs) • Recovery of unspent balances • Reassessments of care packages • Whistleblowing arrangements • Effective publicity and training

11. CLIENT FINANCES • Appointeeship / Court of Protection • Move away from trusteeship • Centralised systems? • Is this seen as a major financial system? • LA management of finances a last resort?

12. CLIENT FINANCES • Risk Issues • Delays in setting up arrangements • Lack of formal paperwork – still acting as trustees • Failing to notify DWP of deaths / deal with queries • Staff not authorised to withdraw clients’ money / exceeding authorised limits • Lack of documentation relating to benefits awards, Standing Orders, Direct Debit arrangements • Lack of separation of duties for setting up and administering accounts

13. CLIENT FINANCES • Risk Issues • Lack of separation of duties for recording and reconciling transactions in client records • Lack of management check on accounts • High balances on appointee accounts • Nil balances on accounts • Lack of appropriate skills / knowledge in specialist areas, e.g. disposal of property

14. CLIENT FINANCES • Controls for client finances in homes: • The home keeps clear records of people’s individual finances • Finances are audited monthly by the home manager or administrator and relatives are informed of transactions • The home ensures that residents receive their full entitlement of benefits and income • Care home staff report concerns about financial abuse through safeguarding procedures, to the OPG or the DWP • Local authority income teams make a safeguarding referral if a person’s care fees are not being paid • The local authority deputy maintains links with care homes in the area

15. FINANCIAL RISK AND DEBT RECOVERY • Following up on FACS ratings – identifying financial risk • Obtaining all relevant financial details at the assessment stage, e.g. personal pensions • Financial abuse by relatives with control over a client’s finances – safeguarding issue? • LA actions to recover debts on client contributions • Timeliness? • Legal position? • Best interest? • Care and Support Bill provisions

16. CORPORATE FINANCIAL SAFEGUARDING What is financial abuse? • “Theft, fraud, exploitation, pressure in connection with wills, property or inheritance or financial transactions, or the misuse or misappropriation of property, possessions or benefits” (No Secrets) However: • Not all vulnerable adults are unable to protect themselves from financial abuse and: • Not all of those who are ineligible for social care services are able to protect themselves from financial abuse

17. CORPORATE FINANCIAL SAFEGUARDING Why consider financial safeguarding risks? • Financial crime / abuse is often under-reported • There are a wide range of perpetrators – family members, friends, “professional criminals”, strangers, care workers / other professionals • There are many different types of financial abuse - losses vary from the insignificant to many thousands of pounds • The personalisation agenda can increase potential risks • The impact on the individual can be just as severe as other types of abuse • It can be difficult to identify the symptoms of financial abuse • It can be difficult to get appropriate support and advice

18. CORPORATE FINANCIAL SAFEGUARDING What are the risks? • Abuse of a formal position of trust – appointees, deputies, attorneys • Abuse of an informal position of trust – family members, friends / neighbours • Theft of money / property • Non-investment fraud, e.g. rogue traders • Cold-calling and mass-marketing frauds • Identity theft or customer impersonation

19. CORPORATE FINANCIAL SAFEGUARDING What are the risks? Frauds against the individual: • Includes scams, mass marketing fraud, identity fraud • Current estimate of £6.1 billion loss per annum • Scams and mass marketing - £3.5bn estimated loss per annum, over 3 million people fall victim each year • Identity fraud – over a quarter of all individuals have been a victim at some time – average loss nearly £500 per person • Over half of the victims of identity fraud are unable to recoup their losses

20. CORPORATE FINANCIAL SAFEGUARDING What can we do about these risks? • Understand the warning signs – may include: • Sudden inability to pay everyday bills • Reminders sent for e.g. utility bills • Unexplained withdrawals of money from bank: • Single large amounts • Regular smaller amounts (e.g. via ATM) • Loss of ATM / bank card or formal means of identification • Personal possessions go missing from home • Lack of documentation to support evidence of expenditure / income • Unexplained transfer / gift of assets to a relative / someone outside the family • Suspicious changes in wills / power of attorney (particularly LPA)

21. CORPORATE FINANCIAL SAFEGUARDING What can we do about these risks? • Warning signs (continued): • Visitors whose visits coincide with benefits payment days • Evasiveness of people in position of trust when providing financial information • Increased interest and / or involvement on person’s financial affairs by relatives / friends • Significant amounts of junk mail / cold calls • Unnecessary goods, services or subscriptions purchased • Deterioration in living conditions, e.g. no evidence of cleaning Note that these are just warning signs – people can make unwise decisions, but still be competent to manage their own financial affairs

22. CORPORATE FINANCIAL SAFEGUARDING What can we do about these risks? • Incorporate these areas in assessments – identify the risks • More effective liaison with the council’s financial support sections: • Client finances • Income assessment and recovery teams • Internal Audit / Legal Services • Early identification of potential outcomes and involvement of external agencies, e.g. DWP, OPG, Police • Awareness of reporting lines, e.g. whistleblowing • Training and awareness-raising

23. WHISTLEBLOWING Effective whistleblowing arrangements are a key control – but: • Does your whistleblowing procedure cover third party providers? • Do you get referrals in this area? • Are all practitioners aware of your procedures and how to use them? • Would you know how to deal with a referral in this area? • Is it clear how whistleblowing fits in with safeguarding referrals and other accountability frameworks?

24. Sefton MBC – ‘A Real World Case Study 2008 – 2013’N.B. Names have been changed to protect the guilty

25. The Background • Sefton Employee and Relative • Residential Care from 2008 • Financial Assessment / Client Contributions • Contact from Care Home May 2012

26. Safeguarding ‘Investigation’ • Ascertain Financial Position / Arrears • Ensure Placement is not in Danger • Notify Police • Appointeeship • Not a Disciplinary Matter!!!

27. Personnel / Internal Audit Investigation • Suspension • Initial IA Support : - Employee Role / Responsibilities - Details of Further Debts - Details of Assets / Property - Employee’s Husband - Legal Advice re Recovery • Personnel Conduct Interviews - Employee Admission

28. Investigation Findings/Conclusion/Outcome • Employee WAS Appointee • Consistent Failure to Pay Client Contributions Since 2008 • Unacceptable Financial Loss to Council • Financial Abuse of Vulnerable Adult • Discredit to the Council • Breach of Trust • Employee Dismissed

29. Debt Recovery / Further Actions • Debt Increases • Options for Recovery • Sale of House • Result!!!

30. Lessons Learnt / Audit Implications • Lack of Communication / Joined Up Approach • Delays in Obtaining Appointeeship • Weaknesses in Financial Assessment Process • Correct Raising of Debts & Communication with Client’s Relatives • Are There Others? • Debt Recovery Procedures

31. What have we told you? • There is a big culture shift underway • Personalisation brings both opportunities and risks • Risk assessments may have to change – financial safeguarding issues can be complex • Internal Audit need to have constant dialogue with managers and practitioners • It’s a great opportunity for Audit to add value

32. Any Questions?

33. It’s the last slide! References: “No Secrets: Guidance on protecting vulnerable adults in care” DoH 2000 “Caring for our future: reforming care and support” DH consultation 2013 “Draft Care & Support Bill” The Stationery Office 2012 “A Problem Shared: making best use of resources in adult social care” Think Local Act Personal 2013 “Personal Budgets: Taking Stock, Moving Forward” TLAP 2011 “Assessment: financial crime against vulnerable adults” SCIE 2011 Links: www.thinklocalactpersonal.org.uk