Direct Payment Fact Sheet 

Keeping Records for Direct Payments 

Keeping clear records about how you spend your Direct Payment is an 
important part of receiving a Direct Payment from Knowsley council. 

Record 
keeping 
is also 
known 
as “financial 
monitoring “or “Audits “. 


Knowsley MBC is required to set up financial monitoring arrangements for 
audit purposes. This will fulfil the council’s responsibility to ensure that 
public funds are spent to produce the intended outcomes. Therefore, it is 
reasonable for the council to ask you to account for how the Direct 
Payment has been spent. This means that you will need to keep records 
and/or receipts of all payments. 

How often will my records be audited by Knowsley MBC? 

When you first start receiving a Direct Payment, you will be asked to send 
in your records after 3 months, then after 6 months and then after one 
year. Generally after this audits are carried out on a yearly basis. 

How will I know when to send my records for audit? 

You will receive a letter from Knowsley MBC asking you to send in your 
records If possible, we recommend that you send your records by 
recorded delivery or hand deliver to the office at Knowsley Disability 
Concern (KDC). 

When I have sent in my paperwork what happens next? 

Your paperwork is passed to a team of auditors employed by Knowsley 
MBC 

The auditors will check: 

. 
All payments from Knowsley MBC are correct and accurate. 

Direct Payment FACT Sheet #7_AuditPage 1 of 4 


. 
Wages paid to Personal Assistant are correct, accurate and match 

the net pay on the payslips. 

. 
Payments to HMRC are up to date with no history of late payments. 

. 
Other expenditure documented on the Support Plan is accounted 

for and receipts are provided where applicable. 

. 
Public Liability Insurance is up to date. 

. 
All assessed client contributions are being paid and up to date. 

. 
All invoices are paid and up to date. 

If the auditors have a query with any of the records they will refer to KDC 
and we will contact you to offer you further help, support or guidance in 
managing the finances or keeping your records. We will seek to assist you 
with dealing with the query by telephone, letter or home visit. 

I am employing a Personal Assistant -What records do I need to 
keep? 

You will need to keep all the bank statements from the bank account you 
set up only for the purpose of the direct payment. You also need to keep 
a copy of the payslip from the payroll service. 

I receive two payslips from my payroll service – 
what do I need 
to do? 

The first payslip is to give to your personal assistant. You will need to 
make sure that you pay them the correct amount on the payslip. This is 

called 
the “Net 
Pay “and 
it is the 
figure on the bottom right 
hand 
side of 


the payslip. 

The second copy is for your record keeping. You will need to ask your 
personal assistant to sign and date this payslip. This is to show that the 
personal assistant has been paid correctly and on time. It is important 
that the payslips are always signed. 

Direct Payment FACT Sheet #7_AuditPage 2 of 4 


I am making my own payroll arrangements. What records do I 
need? 

You will need to keep your timesheets which show the net amounts paid 
to your Personal Assistants and the payments that you make to Her 
Majesty’s Revenue and 
Customs (HMRC). You will need to keep copies of 
your bank statements and it is important to show on the bank statements 
the payments you have made to HMRC and the payments you have made 
to the Personal Assistants. 

I use an Agency for my care needs -What records do I need to 
keep? 

You will get an invoice from the Agency that you are using. You will need 
to keep a copy of all the invoices that you receive from the Agency. It is 
important to pay the Agency on time and keep up to date with payments. 
You will also need to keep a copy of all the bank statements for the Direct 
Payment account. 

I have received a Direct Payment for a one-off purchase – 
What records to 
do I need to keep? 

Generally, one-off Direct Payments are not required to be paid into a 
separate bank account and therefore, you will not be asked to return bank 
statements. You will need to keep receipts to evidence how you spent the 
Direct Payment. 

I have a Direct Payment for Short Breaks/Respite – 
What 
records do I need to keep? 

You will need to keep receipts for all the expenditure for your respite. For 
example, if you have used the short break to hire accommodation, you will 
need to keep the receipt. If you use a residential provision outside of 
Knowsley, you will have been given an invoice by the residential provider. 
Also, you will need to keep all the bank statements for your Direct 

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Payment account to show how the money has been used. Please see our 
FACT sheet on Short Breaks/Respite which gives further information about 
what you can and cannot use Respite money for. 

Sometimes I need some support with keeping good records, 
where can I get help? 

The Direct Payments Support Service at KDC offers help and guidance with 
keeping records in the following ways: 

. 
We provide an explanation of the audit requirements on our first 
visit to you after a referral from the social worker 
. 
Information about audits is provided in our Direct Payments starter 
pack that we leave with every individual after our first visit 
. 
We invite you to our monthly training sessions which includes a 
session about record keeping 
. 
We offer advice/guidance on how to pay your assessed contribution 
into your Direct Payment account 
. 
We are available for telephone help and a home visit where 
needed. 

Remember, if you are unsure, have any queries or need additional 
support; please contact the Direct Payments Team here at KDC. 

Telephone: 0151 480 8873 Email: andy.gilbert@kdc.org.uk 

You can find this Factsheet along with others covering a variety of topics 
by visiting us at www.kdc.org.uk 


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