FINANCIAL SAFEGUARDING

Simon BlecklyJustin Swale

Warrington BC / Sefton MBC

11 October 2013

What are we going to tell you?

Background – why this area is important – and difficult!

Key issues:Personalisation – personal budgets and direct

paymentsClient finances – appointeeship and court of protectionFinancial risk and debt recoveryCorporate financial safeguardingWhistleblowing

Case study – Sefton MBCQuestions

BACKGROUNDLegislation – “Caring for our Future” White

Paper and Care & Support Bill2 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 PersonalTowards Excellence in Adult Social Care

BACKGROUNDDraft Care and Support Bill:Legal entitlement to a personal budgetThe right to request a direct paymentMinimum eligibility criteria – councils must do

written care and support plansCouncils must arrange / provide services to meet the

minimum eligible needsCouncils to have lead responsibility for safeguarding

“Self directed support is a key means of empowering people”

BACKGROUNDAn increasing profile within Audit Plans:

emerging riskInclusion on strategic / directorate risk

registers?LA restructures:

Merger of children’s and adults’ servicesSocial enterprises for ASC

PERSONALISATIONPersonal budgets and direct paymentsNW research 12/13:

Too complex and bureaucraticLack of flexibility and creative use of fundingRules too rigid, LA still promoting “preferred

providers”Making it Real:

Risk enablementFeeling in control and safeDelivered through personal budgets and self-

funding

PERSONALISATIONKey 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

PERSONALISATIONRisks to the client:Person controlling the account not using the money to

pay for careFamily member gaining access to the account and

misusing fundsPerson controlling the account forges accounting

records, payslips etc to claim for services not providedCare worker / personal assistant claims for time not

workedRecipient of DP doesn’t spend the money on appropriate

goodsRecipient does not maintain paperwork to demonstrate

appropriate expenditure

PERSONALISATIONKey controls (1):Prepaid cards:

Transaction limits / limits on cashbackMCC blocking

Staff sharing passwords with users Controls over refunds / ability to set up payments

Regular, risk-based auditing (IA role?)Monitoring turnover of carersMandates for carer’s signaturesEvidence of transactions / wage paymentsLarge transactions on respite / holidaysHours claimed checked to support plan

PERSONALISATIONKey controls (2):Staff vetting (CRB checks on PAs)Recovery of unspent balancesReassessments of care packagesWhistleblowing arrangementsEffective publicity and training

CLIENT FINANCES Appointeeship / Court of Protection

Move away from trusteeshipCentralised systems?Is this seen as a major financial system?LA management of finances a last resort?

CLIENT FINANCES Risk Issues

Delays in setting up arrangementsLack of formal paperwork – still acting as trusteesFailing to notify DWP of deaths / deal with queriesStaff not authorised to withdraw clients’ money /

exceeding authorised limitsLack of documentation relating to benefits

awards, Standing Orders, Direct Debit arrangements

Lack of separation of duties for setting up and administering accounts

CLIENT FINANCES Risk Issues

Lack of separation of duties for recording and reconciling transactions in client records

Lack of management check on accountsHigh balances on appointee accountsNil balances on accountsLack of appropriate skills / knowledge in

specialist areas, e.g. disposal of property

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

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 contributionsTimeliness?Legal position?Best interest?

Care and Support Bill provisions

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

CORPORATE FINANCIAL SAFEGUARDING

Why consider financial safeguarding risks?Financial crime / abuse is often under-reportedThere 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 risksThe 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

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 tradersCold-calling and mass-marketing frauds Identity theft or customer impersonation

CORPORATE FINANCIAL SAFEGUARDING

What are the risks?

Frauds against the individual: Includes scams, mass marketing fraud, identity fraudCurrent estimate of £6.1 billion loss per annumScams 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

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)

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

CORPORATE FINANCIAL SAFEGUARDINGWhat 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

WHISTLEBLOWINGEffective 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?

Sefton MBC – ‘A Real World Case Study 2008 – 2013’

N.B. Names have been changed to protect the guilty

The BackgroundSefton Employee and Relative

Residential Care from 2008

Financial Assessment / Client Contributions

Contact from Care Home May 2012

Safeguarding ‘Investigation’Ascertain Financial Position / Arrears

Ensure Placement is not in Danger

Notify Police

Appointeeship

Not a Disciplinary Matter!!!

Personnel / Internal Audit InvestigationSuspension

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

Investigation Findings/Conclusion/OutcomeEmployee WAS AppointeeConsistent Failure to Pay Client

Contributions Since 2008Unacceptable Financial Loss to CouncilFinancial Abuse of Vulnerable AdultDiscredit to the CouncilBreach of TrustEmployee Dismissed

Debt Recovery / Further ActionsDebt Increases

Options for Recovery

Sale of House

Result!!!

Lessons Learnt / Audit ImplicationsLack of Communication / Joined Up

ApproachDelays in Obtaining AppointeeshipWeaknesses in Financial Assessment

ProcessCorrect Raising of Debts &

Communication with Client’s RelativesAre There Others?Debt Recovery Procedures

What have we told you?There is a big culture shift underwayPersonalisation brings both opportunities and

risksRisk assessments may have to change –

financial safeguarding issues can be complexInternal Audit need to have constant dialogue

with managers and practitionersIt’s a great opportunity for Audit to add value

Any Questions?

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