Agenda item

To present the Annual Audit Letter for 2017/18.

The Annual Audit Letter for the Isle of Anglesey County Council for 2017/18 was presented for the Committee’s consideration. The Letter confirmed that on 28 September 2018, the Auditor General issued an unqualified audit opinion on the Council’s financial statements confirming that they present a true and fair view of the Council’s financial position. The key matters arising from the audit were reported to the Audit Committee’s September 2018 meeting.

The Committee noted the Audit Letter and noted also that it comments on the financial challenges which the Council is facing in seeking to set a balanced budget against a backdrop of diminishing general fund balances and that it refers specifically to demand pressures in Children and Adults’ Social care as key drivers of the £3.3m deficit which the Council is projecting on the provision of services in 2018/19. In light of this the Committee sought clarification of the following –

•           Whether the Health Service contributes towards the cost of children’s care placements or is asked to do so.

•           Whether the Authority is seeking a long-term resolution to the shortage of children’s placements locally by increasing the capacity on the Island thereby reducing the use of out of area placements which account for a large proportion of the expenditure on Children’s social care.

The Chief Executive said the Authority has specific responsibilities in relation to safeguarding and promoting the welfare of children whom it looks after; over the past three years the Authority has worked hard to ensure that the services it provides for its looked after children are of the highest quality with significant improvements having been made in that time. There are however instances where the needs of a looked after child are also health related, and in those cases the Authority does engage with the Health Service.

The Officer said that the Audit Letter also highlights the Council’s diminishing General Fund balances as a risk and that it observes that it is not sustainable to rely on reserves to support the ongoing cost of demand led care/Children’s Services. The Officer added that the risk posed by demand pressures on Children and Adults’ Social care budgets is currently an issue for all local authorities in Wales and is not unique to Anglesey.

With regard to addressing the shortage of placements locally, the Leader of the Council said that the Authority has received Executive approval both for the Small Group Homes Model of care which entails the Council utilising appropriate dwellings from its own housing stock to provide accommodation for up to 2 looked after children and for an enhanced Foster Carers’ support package which is intended to facilitate the recruitment of Foster Carers. Whilst these measures will bring savings in the long-term by reducing the use of distance placements/private Foster Carers there will always be children in the Authority’s care whose needs are such that they require specialist placements that are not available in-county. The Welsh Government has launched a £100m Health and Social Services Transformation fund to develop new models of health and social care through the Regional Partnership Boards. Currently the six North Wales authorities along with BCUHB are working on a Children Plan.

It was resolved to accept the Annual Audit Letter for 2017/18 and to note its contents.

NO ADDITIONAL ACTION WAS PROPOSED