Agenda item

The Committee noted an update on the Council’s strategic risks as of June 2021 and the arrangements in place to manage them.

The review and update of each strategic risk had been discussed with the risk owners and reported to the Leadership Team and Cabinet Members.  The Committee noted that the covid-19 risk register, was no longer separate and had now been incorporated into the Strategic Risk Register, as requested by the Committee.

A full review and refresh of all strategic risks had been undertaken by the Leadership team in line with the Corporate Plan refresh which was also underway. As a result of this review, a number of new risks had been identified for inclusion in the risk register, and some risks had been transferred to directorate risk registers.

The following six new risks had now been identified for inclusion in the strategic risk register:-

•        Special Educational Needs and Disabilities (risk 54)

•        Implementation of external audit recommendations (risk 55)

•        Towns Fund programme (risk 56)

•        New operating model (risk 57)

•        Equalities (risk 58)

•        Corporate governance (risk 59)

The risks below had been transferred to directorate registers:-

•        CONTEST

•        School Place Planning

•        Supply chain resilience

A number of separate risks around future government policies and funding sources, previously included on the strategic risk register had been consolidated into one strategic risk.  The register now contained 16 strategic risks - eight red risks and seven amber risks and one risk was assessed as green.

In relation to Risk 50 – Commonwealth Games Aquatic Centre members questioned why the risk remained amber.  It was reported that the risk would likely be downgraded to green once the centre had been handed over to the organising committee.  However, the risk owner would be asked to review this risk.

In relation to Risk 27 - Medium Term Financial Strategy and Resource Allocation, it was reported that the risk score had been reduced as a result of the reduced budget shortfall position, for 2021/22.  The deficit was around £14 million, the budget for next year had been confirmed as £8 million. There had also been significant underspend across all council services, which had allowed the authority to replenish its reserves, however there was still a need to identify ongoing savings to balance the budget going forward.

In relation to Risk 6b - Business Continuity Management (BCM) members felt that this risk should be higher, given the number of interim directors in post.  It was reported that all but one posts had been appointed to on a permanent basis and recruitment was underway for the remaining position.

The risk in relation to school place planning had been moved to the directorate risk register as the Council had confidence that sufficient additional places had been created in Secondary Schools over the next academic year and projects to build new schools were on tracks. The risk remained amber however, and would remain under review.

In relation to Risk 59 – Corporate Governance – the risk related to the matters reported in the external auditors’ audit findings report and the delays in finalising the statement of accounts.  External auditors would be undertaking a wide review of governance.  The Director of Law and Governance and Monitoring Officer reported that the scope for the review had not yet been finalised and so he would update the Committee on the draft in private session.  However, the Chair reported that he would be discussing the matter with external auditors before the Committee was briefed.

In relation to Risk 4 – Children’s Social Care – It was reported that the last inspection had highlighted a number of areas of improvement and it was hoped that the Trust would move to “Requires Improvement” rating at the next inspection.  However, the impact that the pandemic had had on the workforce had been a key factor. The Director Law and Governance undertook to provide members with a briefing setting out the governance arrangements in relation to the Trust and the role of scrutiny.

Councillor Allen declared that he was a non-executive director of Sandwell Children’s Trust. He reported that a national shortage of social workers was a key concern, however the Trust was making savings annually and had recently made changes to its operating model.  The risk owner would be asked to attend the next meeting to discuss the risk in more detail.

In relation to risk 54 – Special Educational Needs and Disabilities – this was the consolidation of three red risks from the directorate risk register and did not just relate to the contract and procurement. However, any lessons learned from the reviews currently taking place would be taken on board.

Resolved that the Director of Children and Education is requested to attend the next meeting of the Audit and Risk Assurance Committee to discuss Risk 4 on the Strategic Risk Register;