Payments over €11,000 were made to foster carers by Tusla without proper approval, audit reveals

Seán McCárthaigh

Cash allowances of over €11,000 were granted to foster carers without appropriate supporting documents by Tusla, an internal audit has revealed.

The finding was one of several discrepancies identified during an audit of cash payments authorised by staff at the north Dublin area office of Tusla which also revealed overpayments totalling over €6,000 were made to foster carers due to delays by social workers in notifying colleagues that placements had ended.

An internal audit report by Tusla – the Child and Family Agency – found the adequacy and effectiveness of internal control systems over cash allowance payments at its office in Airside Business Park, Swords, Co Dublin was “unsatisfactory.”

The report, which was released under freedom of information legislation, identified five separate issues during an audit of cash payments overseen in 2023 as posing “a significant risk” of substantial financial loss, accounting error and major non-compliance with procedures, policies or regulations.

They included that figures on overpayments recorded on its live database were missing from the cash allowance debtors’ year-end ledger.

The auditors said the matters required urgent action which has resulted in a number of agreed recommendations and a management implementation plan.

A sample of 25 cases examined to check on compliance with policy on payments and allowances relating to foster care also found an overpayment of €2,170 due to a miscalculation of respite care rates as well as a premature payment of €5,010 in cash before formal approval.

One of the main findings revealed that €11,036 was paid to foster carers without appropriate supporting documents.

Specifically, a weekly increase in payment rates of €100 was made without any documentation to justify the increase.

“The absence of supporting documentation indicates weak controls and could lead to unnecessary financial outflows,” the audit concluded.

It also highlighted how delays of up to 43 days in notifying other staff about the ending of placements in foster care resulted in overpayments totalling €6,310.

Tusla management has agreed to immediately establish a protocol for social workers to promptly notify staff about the end of placements in order to avoid the potential loss of money from the non-recovery of overpayments.

There were also delays of up to four months in notifying parties of overpayments as well as inconsistencies in repayment methods communicated to foster carers, while reminder letters were also issued up to four months late.

The review found nine Payment Initiation Forms were not fully signed by authorised personnel, while 4 PIFs were only certified after payments had already been made which the auditors warned could increase the risk of unauthorised payments being made.

In another sample, auditors found the size of an overpayment had been understated by €151 due to a calculation error.

They expressed concern that such inaccuracies could damage trust and credibility with foster carers as well as delaying the resolution process.

Tusla management confirmed the factual accuracy of the audit’s findings and accepted an agreed implementation plan for the recommendations which is being overseen by its director of service and integration.

It said it would immediately introduce measures to ensure compliance with the national policy relating to cash allowances to foster carers including regularly checking PIFs against approved rates.