Independent Member (Committee Vice. Chair) Independent Member (PTHB Vice Chair) (attending in place of Sara Williams, Independent Member)

Transcription

1 POWYS TEACHING HEALTH BOARD AUDIT & ASSURANCE COMMITTEE CONFIRMED MINUTES OF THE MEETING HELD ON TUESDAY 12 JULY 2018 BOARD ROOM, GLASBURY HOUSE, BRONLLYS HOSPITAL Present: Tony Thomas Duncan Forbes Melanie Davies In Attendance: Carol Shillabeer Peter Hopgood Mandy Collins Sarah Pritchard Gail Turner-Radcliffe Helen Higgs Elaine Matthews Scott Lavender Jane Errington Observers: Carl Stack Independent Member (Committee Chair) Independent Member (Committee Vice Chair) Independent Member (PTHB Vice Chair) (attending in place of Sara Williams, Independent Member) Chief Executive Officer Deputy Director of Finance (attending for Eifion Williams, Director of Finance and IT) Board Secretary Head of Financial Services Grant Thornton (External Audit) Head of Internal Audit Wales Audit Office All Wales Post Payment Verification Manager Committee Secretary (minutes) Community Health Council A&A/18/66 A&A/18/67 WELCOME AND APOLOGIES FOR ABSENCE The Committee Chair welcomed everyone to the meeting and confirmed that a quorum was present. Apologies were received from Sara Williams, Independent Member; Barrie Morris, Grant Thornton, and Eifion Williams, Director of Finance & IT. DECLARATIONS OF INTERESTS Page 1 of 9

2 A&A/18/68 The Committee Chair INVITED Members to declare any interests in relation to the items on the Committee agenda. None were declared. MINUTES FROM THE PREVIOUS MEETINGS FOR RATIFICATION The minutes of the meeting held on 29 May 2018 were RECEIVED and AGREED as being a true and accurate record, subject to the following amendment being made: A&A/18/53: Duncan Forbes, Independent Member, requested that the wording relating to the comment that he had made in respect of Single Tender Waivers be amended to read: Duncan Forbes advised that retrospective waivers were reported for contracts ending on 31 March 2018 but it appeared very likely that the contracts would require renewal beyond that date. Given how close it was to 1 April, he asked for assurance that appropriate procurement would take place to avoid any further need for retrospective approval for those items. The Chief Executive gave that assurance. Elaine Matthews, Wales Audit Office advised that a slight amendment was needed to the name of Matthew Burchett. A&A/18/69 MATTERS ARISING The following matters were raised: A&A/18/61: Duncan Forbes, Independent Member referred to page 15 of the minutes and asked which Committee had oversight of the Clinical Audit Programme. He requested that this remain as a rolling agenda item for that Committee until it had been resolved. Mandy Collins, Board Secretary, confirmed that the Patient Experience Quality and Safety (PEQ&S) Committee had oversight of the Clinical Audit Programme and confirmed that it was built in to the PEQ&S Committee s work programme. Duncan Forbes also requested that the following actions be added to the Audit and Assurance Committee s Action log: Page 16: Finance, Planning and Performance Committee to monitor implementation of the recommendations Page 2 of 9

3 A&A/18/70 A&A/18/71 contained in the Procurement of Consultant and Agency Staff Internal Audit Report. Mandy Collins, Board Secretary confirmed that this had not been included in the log as it was an action for the Finance, Planning and Performance Committee. Page 17: Update on progress in relation to Medical Equipment and Devices to be provided to the Audit and Assurance Committee. Mandy Collins, confirmed that this would be added to the action log. Action: Committee Secretary to add the action progress in relation to Medical Equipment and Devices to be provided to the Audit and Assurance Committee to the Committee s Action Log. ACTION LOG The Committee discussed the action log and NOTED the updates. In respect of: AA/18/59 Counter Fraud Policy & Resource Plan: Duncan Forbes, Independent Member advised that he had not received the amended sections for review. Sarah Pritchard, Head of Financial Services, agreed to re-send the document. Action: Head of Financial Services SINGLE TENDER WAIVERS Carol Shillabeer, Chief Executive Officer and Scott Lavender, PPV Manager, joined the meeting Sarah Pritchard, Head of Financial Services, presented a summary of the Single Tender Waivers (STWs) approved between 1 April 2018 and 30 June The Committee reviewed and discussed the two STWs that had been approved that were for the value of 71,653 and 19,000 respectively. The Committee were advised that the requests had been approved in line with the health board s Scheme of Reservation and Delegation of Powers. The Committee RATIFIED the two Single Tender Waivers approved between 1 April 2018 and 30 June Page 3 of 9

4 A&A/18/72 CORPORATE RISK REGISTER: RECOMMENDED UPDATES AND CHANGES Mandy Collins, Board Secretary, presented the Audit & Assurance Committee with the draft July 2018 version of the Corporate Risk Register for review. She explained that the Corporate Risk Register had been reviewed by the Executive Committee on 4 July 2018 and as a result a number of updates made. It was noted that the Corporate Risk Register would be considered by the Board when it met on 18 July 2018, and that due to the Board date being brought forward there had not been time to feed the views of the Committee in to the Board paper on this occasion. Duncan Forbes, Independent Member, referred to CRR 008: fragmented and unsustainable service models as a result of changing need and service reconfiguration of neighbouring NHS bodies. He asked that the Executive Committee looked at the wording of this risk as he felt that two risks had been combined when they really should be separate. Duncan Forbes also referred to CRR 004: ICT systems are not robust or stable enough to support safe, effective and up to date care. He noted that the risk score had not changed since January 2017 and asked that the Executive Committee and Executive Lead be asked to undertake a full review of this risk. Mandy Collins, Board Secretary, reassured the Committee that the Information Management, Technology and Governance (IMT&G) Committee would be reviewing this risk when it met on 25 July Carol Shillabeer, Chief Executive agreed that both risks needed further consideration. She confirmed that going forward the Executive Committee would be meeting to review all risks prior to the Corporate Risk Register being considered by the Audit and Assurance Committee and Board. Action: Corporate Risk Register to be reviewed by the Executive Committee prior to the September Audit and Assurance Committee Meeting Page 4 of 9

5 A&A/18/73 The Committee REVIEWED the draft July 2018 version of the Corporate Risk Register. It was AGREED that the Committee Chair would advise the Board of the issues raised by the Committee when it considered the Corporate Risk Register on 18 July 2018 ADOPTION OF THE ALL WALES NO PURCHASE ORDER NO PAY POLICY AND THE POWYS TEACHING HEALTH BOARD PROCUREMENT HANDBOOK Sarah Pritchard, Head of Financial Services, presented the paper that sought the Audit and Assurance Committee s approval of the proposal to implement a national No Purchase Order/No Payment Policy and its agreement to implement the Powys Procurement Manual. No Purchase Order/No Payment Policy Tony Thomas, Committee Chair, referred to the fact that the health board had not met the Welsh Government s administrative target related to the payment of 95% of nine-nhs creditors within 30 days in He asked whether the No Purchase Order/No Payment Policy would have a negative impact on payment timescales. In response, Sarah Pritchard confirmed that the policy should assist in improving payment performance. Duncan Forbes, Independent Member, noted that there was no reference to contracts for works in the policy. Sarah Pritchard advised that a rigorous process was in place for such contracts, and agreed to ensure that the process for contracts for works was detailed in the health board s accompanying procedure. Duncan Forbes also enquired as to what the process would be in circumstances where, for example, a piece of equipment failed and urgently needed replacing with no time to obtain a purchase order. Carol Shillabeer, Chief Executive Officer, advised that an escalation process was in place to address such situations. Powys Procurement Manual Duncan Forbes highlighted that the Manual did not refer to recent legislation such as the Well-being of Future Generations (Wales) Act 2015 and the Public Services (Social Value) Act It was agreed that Sarah Pritchard would liaise with NHS Wales Shared Services Page 5 of 9

6 A&A/18/74 Partnership, who had led the development of the handbook, to ensure that this matter was addressed. Action: Head of Financial Services Subject to the comments of the Committee being addressed, the Committee APPROVED: the All Wales No Purchase Order No Pay policy, and AGREED to it being implemented in shadow format for three months with a go-live date of 1 September 2018; and the Powys Teaching Health Board s Procurement Handbook and AGREED to it being distributed over the next month. INTERNAL AUDIT: PROGRESS UPDATE Helen Higgs, Head of Internal Audit, provided the Committee with an overview of the Audit plan and progress to date. She also brought the following Internal Audit Report to the attention of the Audit and Assurance Committee: Annual Quality Statement The Committee were informed that no issues had come to the attention of the auditors that led them to believe that the Annual Quality Statement had not been prepared in accordance with the Welsh Government Guidance, or that information in the Annual Quality Statement was not materially consistent with source documents. The Committee NOTED that progress against the Plan was as follows: Number of Audits in plan: 29 Number of audits finalised: 1 Number of audits issued at draft: 0 Number of audits in progress: 11 Tony Thomas, Committee Chair advised that the Committee wanted to see improved timeliness in respect of Executive Directors response to internal audit requests. Mandy Collins, Board Secretary confirmed that a process for Internal Audit to raise concerns regarding timeliness was in place. She also advised that regular progress reports would be submitted to the Executive Committee. Page 6 of 9

7 A&A/18/75 The Committee NOTED the Internal Audit update. EXTERNAL AUDIT: PROGRESS UPDATE Gail Turner-Radcliffe, Grant Thornton confirmed that the annual audit of financial statements was complete. She noted that the financial statements had been signed by the Auditor General for Wales on 13 June 2018 and laid before Parliament on 14 June Gail Turner-Radcliffe advised that the review of the Charitable Fund Accounts would take place in late summer. Elaine Matthews, Wales Audit Office also provided an update on performance audit work. She advised that: Thematic review (2017): Primary care services: Field work was underway with an expected completion date of November 2018 Thematic review (2017): Cross cutting review - Integrated care fund: Field work was underway with an expected completion date of November 2018 Structured assessment (2018): Scoping was underway with an expected completion date of January Follow up (2018): Clinical coding: Scoping had begun, the completion date is yet to be confirmed. Follow up (2018): Orthopaedics: Scoping had begun, the completion date is yet to be confirmed. Elaine Matthews referred to the national study Reflecting on Year One: How have public bodies responded to the Well-being of Future Generations (Wales) Act 2015 and asked how the health board would be taking forward the findings and recommendations. Carol Shillabeer, Chief Executive Officer confirmed that the Executive Committee had discussed the report, and advised that it s findings would be considered as part of the Integrated Medium Term Plan discussions scheduled for the 30 August 2018 Board Development session. Page 7 of 9

8 Elaine Matthews also brought the Committee s attention to the following national studies: Speak my language: Overcoming language and communication barriers in public services. Mandy Collins, Board Secretary advised that the report was being reviewed and a paper would be presented to the Executive Committee for discussion in due course. A picture of primary care in Wales which provides a snapshot of the current state of primary care in Wales. Carol Shillabeer, Chief Executive Officer advised that the health board was taking a fresh look at clusters within primary care. The Committee NOTED the External Audit update. A&A/18/76 A&A/18/78 RISK MANAGEMENT IMPROVEMENT AND DEPLOYMENT PLAN Mandy Collins, Board Secretary, presented this paper to the Committee seeking its agreement of the draft Risk Management Improvement and Deployment Plan. She informed the Committee that the Plan had been discussed at Executive Committee on 4 July Mandy Collins advised that the Executive Committee had raised concerns regarding the deliverability of a number of the timescales given resources within the Directorate of Corporate Governance and Corporate Affairs. She confirmed that she would be meeting with the Chief Executive to agree more realistic timescales. The Committee APPROVED the Risk Management Improvement and Deployment Plan subject to more realistic timescales being agreed with the Chief Executive. PPV: PROGRESS UPDATE Scott Lavender, All Wales Post Payment Verification Manager provided a progress update for the Committee on Post Payment Verification for the period 1 April 2018 to 30 June He advised that during this period the PPV team had visited one General Medical Services (GMS) contractor as per the visit plan agreed with Powys Teaching Health Board and one General Ophthalmic Services (GOS) Contractor. Page 8 of 9

9 The Committee noted that the PPV team would be recovering from completed visits to GMS contractors in the PTHB area. Tony Thomas, Committee Chair advised that the health board did not have University Hospital status and should be referred to as Powys Teaching Health Board (PTHB). The Committee agreed that a PPV reports in future should be scheduled for mid and end of year. The Committee NOTED the PPV update. A&A/18/79 COMMITTEE WORK PLAN FOR A&A/18/80 A&A/18/81 A&A/18/82 The Committee NOTED the Committee work plan for ITEMS TO BE BROUGHT TO THE ATTENTION OF THE BOARD AND OTHER COMMITTEES The Committee AGREED that the Board should be advised that the Annual Accounts had been signed by the Auditor General for Wales on 13 June 2018 and laid before Parliament on 14 June. ANY OTHER BUSINESS Carol Shillabeer, Chief Executive Officer, advised the Committee that the Out of Hours contracted had been awarded to Shropdoc by the two English CCGs. She confirmed that a fuller update would be provided to the Board when it met on 18 July Mandy Collins, Board Secretary, provided the Committee with an update on the Independent Member interviews that had taken place on 25 June She informed the Committee that recommendations for the two appointments had been made to the Cabinet Secretary. NEXT MEETING, Board Room, Glasbury House, Bronllys Page 9 of 9