Allowances and Payments in Fostering – Monitoring and Auditing

'Expenditure – Monitoring and Audit Sheet'

Foster carers should use the 'Expenditure - Monitoring & Audit Sheet' to demonstrate how the allowances provided for the needs of the child/young person have been used and what items have been purchased. All expenditure should be recorded (in brief) on the 'Expenditure - Monitoring & Audit Sheet' and set out whether the allowances have been provided in the form of purchased items, in the form of cash or in a different way. Information should include all allowances provided and in particular:

• What items of clothing have been purchased;
• How pocket money has been provided; and
• How birthday and festival allowance have been used or provided.

This is required for monitoring and audit purposes and to ensure that children and young people have received their full entitlement for each financial year, particularly when they move between placements. Foster carers should, where possible, retain all receipts for their own income tax and national insurance records.

Receipts should also be copied and/or given to the supervising social worker to be copied; any expenditure on a single item for the child/young person of £50.00 and above must be accompanied by a receipt.

The supervising social worker will check and approve the 'Expenditure - Monitoring & Audit Sheet' every three months (or at the supervision visit close to the three month point) and ensure that the allowances are being used to meet the needs of the child/young person in a flexible manner. The supervising social worker should also save a copy of the 'Expenditure - Monitoring & Audit Sheet' on the carers LCS record.

The supervising social worker should then place a copy of the approved 'Expenditure - Monitoring & Audit Sheet' and any accompanying receipts on the foster carers file. In addition, the supervising social worker should pass a copy of the approved 'Expenditure - Monitoring & Audit Sheet' to the child/young person's social worker who should place them on the child/young person's LCS case file.

For any carers receiving a hub allowances payment for activities for a Fostering hub, the supervising social worker will audit the expenses, ie Mockingbird and other similar hubs in supervision at least every 3 months. The payments are expected to be spent on activities monthly, however if the activity money is not spent and exceed £500, the activity money will be temporarily stopped until the balance has reduced.

Decisions regarding how the allowances are to be used and in what form they are provided should be agreed within the care planning/pathway planning/placement plan process and agreed between the child/young person, their foster carer and the supervising social worker, social worker and independent reviewing officer.

Foster carers are also reminded that it is their responsibility to retain their Hertfordshire remittance advice payments sheets for income tax and national insurance purposes.
Please see separate below guidance for management of the following allowances

• Disability Living Allowance (Care or Mobility);
• Personal Independence Payment (Care or Mobility);
• Employment & Support Allowance.

See also: Hertfordshire Guidance on the use of DLA/PIP/ESA/US

Guidance on the use of Disability Living Allowance (DLA) and Personal Independent Payments (PIP)

Approved foster carers - payment policy 2024-2025 | Hertfordshire County Council