Annual Report 2006-2007 - Cafcass

and up to the date of approval of the Annual Report and
Accounts, and accords with Treasury guidance.
During the year Cafcass has been able to put in place
additional procedures that strengthen our systems
of internal control and embed our risk management
processes.
Capacity to handle risk
As Accounting Officer, I am the primary owner of the
Corporate Risk Register, supported by three Corporate
Directors, with the Corporate Director of Strategy and
Performance leading on risk. The Chairs of the Board and
of the Audit Committee also play key roles in the overall
leadership of risk management in Cafcass.
During 2006–07 all senior managers were formally briefed
on risk management with cascade training taking place
in local teams. We also developed a shared risk register
with DfES, which is monitored and updated at sponsorship
meetings.
From the beginning of 2006–07 budget delegation has
been in place for frontline teams in all regions. This builds
on our experience of local delegation and constitutes
a significant change in practice in some areas. This is
supported by local financial training and regular quarterly
budget reviews.
The risk and control framework
The corporate risk register identifies the key strategic
risks which may stand in the way of Cafcass achieving its
objectives as outlined in the 2005–07 Business Plan. The
regional risk registers inform the corporate risk register.
Cafcass considers risks under five broad areas, and
sets risk tolerance on a four-point scale for each area
(ie nil-low-medium-high). The risk register is a working
document. In year, it has been enhanced and developed to
ensure it accurately captures real-time changes in risks.
Cafcass seeks to maximise its reputation in all that we
do and minimise those risks, which could lead to an
adverse reputation.
Both the corporate and regional registers are monitored
and reviewed quarterly by the Corporate Decision Group
(CDG) Performance Board and at quarterly performance
meetings. In preparation regions also complete selfassessments,
assessing their performance against a
range of financial, service delivery and quality indicators.
The Board agreed a new three-year Strategic Business
Plan and associated risk register for the period 2007–10 in
April 2007.
Review of effectiveness
As Accounting Officer, I have responsibility for reviewing
the effectiveness of the system of internal control. My
review of the effectiveness of the system of internal
control is informed by the work of the internal auditors
and the executive managers within the organisation who
have responsibility for the development and maintenance
of the internal control framework, and comments made
by the external auditors in their management letter and
other reports. I have been advised on the implications of
the results of my review of the effectiveness of the system
of internal control by the Board, the Audit Committee
and a plan to address weaknesses to ensure continuous
improvement of the system is in place.
HM Inspectorate of Court Administration (HMICA)
During the reporting period, HMICA undertook three
inspections; Frontline Practice in Private Law (August
2006), Promoting Race Equality (July 2006) and Assisting
Families by Court Order (Family Assistance Orders)
(February 2007). In addition, the Joint Inspection of
Cafcass and HMCS (Adoption – the new law) reported in
December 2006.
Three Post Inspection Reviews (PIRs) completed in
2006–07, Eastern Region, First Line Management, and
Domestic violence, safety and family proceedings. Out of
21 recommendations made in these three reports, seven
(33 %) were fully implemented and 14 (67%) were partially
implemented. The comparative figures for the previous
year as set out in HMICA’s Annual Report 2005–06 were of
the 23 recommendations made seven (30%) were assessed
as satisfactory at PIR and 16 (70%) assessed as generally
satisfactory at PIR but more work required.
In summarising the year HMICA reported, “The Board,
Chief Executive and Corporate Directorate provide
authoritative leadership. The organisation is benefiting
from a high degree of stability across its most senior
officer and Board member positions.”
Internal control bulletin
This has been the third year in which a system of internal
control has been fully in place across Cafcass. Throughout
2006–07 I have required that every location/department is
the subject of a process leading to an internal certificate
that covers 16 control areas. Every cost centre submits
returns that culminate in a certified annual return
completed by every Regional Director/National Office
department. The IFC training and procedures which have
operated in the year alongside targeted training have
resulted in significant progress in year. The two highest
reported weaknesses relate to local inventory records and
fraud prevention awareness. None of the issues raised
gave rise to significant internal control concerns.
Audit Committee
A duly constituted Audit Committee has operated
throughout the year and its terms of reference reflect best
practice. It consists of six non-executive members of the
Board. The Audit Committee met six times in 2006–07. The
attendance of the NAO at all these meetings provides a
valuable opportunity to introduce their experience, views
42 | Cafcass Annual Report and Accounts 2006–07