Agenda item

This report updates councillors on the position of the council’s Corporate Risk Register. The main updates are as follows:

·        No new risks have been added to the council’s Corporate Risk Register during the quarter.

·        Corporate Risk CR8 – Inability to run an election/ referendum – has been de-escalated and it now returns to being a service risk.

Each of the risks have been reviewed including the Actions Completed and the Actions Proposed. 

Fiona Manton, Risk and Insurance Manager presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'C' to these Minutes in the Minute Book.

The report updated councillors on the position of the council’s Corporate Risk Register. The main updates were as follows:

·        No new risks had been added to the Council’s Corporate Risk Register during the quarter.

·        Corporate Risk CR8 - Inability to run an election/ referendum – had been de-escalated and it now returns to being a service risk.

·        Each of the risks had been reviewed including the Actions Completed and the Actions Proposed.

The Risk and Insurance Manager reported on the continuing need to update and reflect the impact the pandemic had on the activities of the Council.  She reported that a full and comprehensive review of the corporate risks took place in June in advance of the workshop held with the Committee and from that process key questions were asked of each risk lead determining if the risk was still current and whether the impacts of the pandemic were sufficiently considered in the context of each risk.  The Committee was informed that the risk register included in appendix 1 of the report included the updates undertaken at the June review.

The Risk and Insurance Manager referred to the changes in risks during Quarter 1 which were referenced in paragraphs 8-12 of the report.  She explained that routinely risks were reviewed with the Chief Executive every six weeks and interim updates prepared for consideration which provided assurance.  The next interim review was scheduled for early august.

The Committee’s attention was drawn to paragraph 16 of the report and the work undertaken on horizon scanning which included looking out for new legislation and changes to the environment in which the Council operates with advanced notice provided to Managers of relevant information.  In addition, the Risk and Insurance Manager reported that the team challenged risks at both a corporate and a service level to ensure that they were given due consideration.

Councillor Phipps referred to CR11- the ability of the Council to function and operate efficiently in the delivery of single services across the BCP Council area and asked if the groups of officers and members were in place to deliver high level delivery plans for the corporate strategy.  She also referred to the LGA Peer challenge plan for November 2021 and asked if this would involve all Councillors.  The Risk and Insurance Officer reported that she would take those questions away and circulate a response in writing to the Committee.

The Chairman referred to CR9 and asked for an update on this risk.  Nicola Webb, Assistant Chief Financial Officer reported this was a refresh of the risk.     She highlighted the key issues including the impact of Covid and the high needs budget.  The Committee was advised that the Government had legislated that the high needs budget was not part of the general fund and it was carried forward separately as a separate reserve.  The Assistant Chief Financial Officer reported that this budget had not been brought into balance and was still an issue. She highlighted that if the legislation did not change or the Council received extra funding from Government or the Council found new ways to manage the high needs block potentially there was a significant issue for the Council as the deficit would continue to rise and before long it would exceed the Council’s unearmarked reserves.  The Committee was advised that the Council was trying to manage it by bringing down the deficit and lobbying Government, but it was difficult to bring this budget into balance.  The Assistant Chief Financial Officer reported that there were six weekly meetings with the Chief Executive, the Leader and other stakeholders such as the Clinical Commissioning Group to discuss this risk.  She referred to other key issues such as the pay award which had not yet been agreed and the potential for the award to be greater than what had been budgeted for, the transformation programme and the expected level of savings whilst outlining the mitigations.

The Chairman referred to the issues raised above in respect of CR9 which related to the Council’s ability to deliver a balanced budget.  He highlighted that all of these issues individually were significant but collectively would be overwhelming if they were all to come together.  The Chairman requested that a full update be provided at the next quarterly meeting of the Committee on 28 October 2021.  He requested that should the officer meeting see a trend developing that the Committee should be made aware. The Chairman asked that he and the Vice-Chairman be consulted so that they can consider if such issues should be forwarded to the Committee prior to the scheduled quarterly meeting on 28 October 2021 so that they were aware of the deliberations on CR9.

RESOLVED that:-

(a)           Members of the Audit and Governance Committee note the update provided in this report relating to corporate risks; and

(b)          That at the next quarterly meeting of the Committee on 28 October 2021, there is a further full update on the actions and mitigations, relating to CR9, and the Chief Finance Officer, or delegate, attending the meeting be prepared to outline how the Council will deliver a balanced budget.

Voting: Agreed