Agenda item - Strategic Risk Focus Report: SR2, SR24, SR29, SR15, SR13 and SR37

Executive Director, Governance, People and Resources

That the Audit & Standards Committee:

1)             Note the SRR detailed within Table 1 of this report.

2)             Note Appendix 1 the CAMMS Risk report with details of the five SRs and actions taken (‘Existing Controls’) and actions planned.

3)             Note Appendix 2 which provides:

                      i.        a guide on the risk management process;

                     ii.           guidance on how Members might want to ask questions of Risk Owners, or officers connected to the strategic risks; and

                    iii.           details of opportunities for Members, or officers, to input on Strategic Risks at various points and levels.  

4)             Make recommendations for further action(s) to the relevant council body.

5)             Receive a report to its next meeting regarding risk assessing, risk appetite, benchmarking against other organisations and proposals for training.

49.1      The Committee considered a report of the Executive Director Governance People & Resources that provided detail on the actions taken and future actions to manage each strategic risk.

SR2 The Council is not financially sustainable.

SR24 The council is unable to provide an effective welfare support response to households facing financial hardship.

SR29 Procurement non-compliance and ineffective contract performance management leads to sub-optimal service outcomes, financial irregularity and losses, and reputational damage.

SR15 Not keeping children safe from harm and abuse.

SR13 Not keeping adults safe from harm and abuse.

49.2      In response to a question from Councillor Hugh-Jones, the Executive Director Governance People & Resources stated that the initial risk score was made by the relevant Directorate and that was then challenged and discussed by the Executive Leadership Team (ELT) who in turn would set the risk score.

49.3      During discussions, Members suggested the committee receive a report on how risk ratings were set and what benchmarking was undertaken with comparable local authorities. Members suggested a training session be held for Members to better understand the risk management process.

49.4      In response to a question from Helen Aston, the Chief Finance Officer stated that the risk score was high as there were significant challenges and risk relating to the council’s financial reserves in the medium-term.

49.5      In response to questions from Councillor Meadows, the Chief Finance Officer stated that resource issues meant that the focus in procurement was upon higher value contracts as they carried higher reputational risk. Officers in the Procurement Team were contacting senior managers about their specific service and ensuring training programmes were in place. The Executive Director, Adult Social Care & Health confirmed that the premises identified on page 28 of the agenda was Ireland Lodge and an action plan was being developed and would be implemented.

49.6      In response to a question from Councillor Moonan, the Chief Finance Officer clarified that Internal Audit had picked up one or two issues with contract procurement. The service had been hampered by a recent drop in staffing levels due to resignations and the pandemic had impacted the wider training and coaching programmes. These issues would be address with the target the end of the financial year.

49.7      In response to questions from Councillor Appich, the Executive Director, Adult Social Care & Health explained that the Finance & Performance Board met every other month.

49.8      In response to questions from Councillor Hugh-Jones, the Executive Director - Families Children & Learning explained that a specific hidden children officer had been recruited in to increase the focus in this area as an outcome of the pandemic. The Council was only the second council in the country to gain the National Probation Inspectorate Youth Inspectorate grading and the next review would be due in approximately 4 years. Furthermore, regular audit activity dipped in quarter 3 due to a system move and had returned to the expected level in quarter 4. In addition, there was a standard set for family plans for children in need to be updated with 45 days and currently 70% were completed within that timescale.

49.9      Councillor Peltzer Dunn moved a motion to add a recommendation as shown below:

That the Audit & Standards Committee:

2.5         Receive a report to its next meeting regarding risk assessing, risk appetite, benchmarking against other organisations and proposals for training.

49.10   Councillor Yates formally seconded the motion.

49.11   The Chair put the motion to the vote that passed.

49.12   The Chair put the recommendations as amended to the vote that were agreed.

49.13   Resolved- That the Audit & Standards Committee:

1)           Note the SRR detailed within Table 1 of this report.

2)           Note Appendix 1 the CAMMS Risk report with details of the five SRs and actions taken (‘Existing Controls’) and actions planned.

3)           Note Appendix 2 which provides:

                    i.        a guide on the risk management process;

                   ii.          guidance on how Members might want to ask questions of Risk Owners, or officers connected to the strategic risks; and

                 iii.          details of opportunities for Members, or officers, to input on Strategic Risks at various points and levels.  

4)           Make recommendations for further action(s) to the relevant council body.

5)           Receive a report to its next meeting regarding risk assessing, risk appetite, benchmarking against other organisations and proposals for training.