Meeting documents

AVDC Audit Committee
Monday, 22nd January, 2018 7.00 pm

  • Meeting of Audit Committee, Monday 22nd January 2018 7.00 pm (Item 6.)

To consider the attached report.

 

Contact Officer:  Kate Mulhearn (01296) 585724

Minutes:

The Audit Committee had a role to monitor the effectiveness of risk management and internal control across the Council.  As part of discharging this role the committee was asked to review the Corporate Risk Register (CRR).  The CRR provided evidence of a risk aware and risk managed organisation and reflected the risks that were on the current radar for Commercial Board.  Some of the risks were not dissimilar to those faced across other local authorities.

 

Since the previous Audit Committee meeting in November 2017 the following risks had changed:

 

Risk Reference

Change

Comment

20) Failuretorespondto newlegislationonHomelessness Duty,enforceablefrom1 April 2018. Inabilitytorecruitand train staff incomplexnewlegislation.

New(Moderate)

Newlegislationwhich increased thedutyof Local Authorities toactto prevent homelessness came intoforcefrom1 April 2018.  Keychallenges arearound recruiting staff in a competitiveenvironmentand providing adequatetrainingon complexlegislation.

Failureto identifyand respond to currentand potential changesin thelegislative/regulatory environment.

Inadequatehorizon scanning.

Closed

Nolonger consideredto bea corporatelevelrisk.Risksin responseto specificlegislationchangeshavebeen captured elsewheree.g. #20 - Homelessnessand#12- GDPR)

2)Organisationalculturedoesnotenablethestrategy

(Connected Vision,Connected Knowledge& commercial targets).Behaviour frameworkand Valuesarenot embedded.

Reduced

Reduced

High ?Moderate

Newstaff and waysofworking arebecoming BAU postrestructure.Work still neededto define P&Cstrategyand embed behaviour frameworkbut notnowconsidered a "high"risk toachievementof strategy.

5)Councilownedor partlyownedcompanies(VC,AVE& AVB)fail toachievetheCouncil's objectives. Inadequate governancearrangementsover Companies.

Reduced

Reduced

High ?Moderate

Sale ofAVB assetsandwind up of VC reducetheoverallrisks associated with whole/partly owned companies.  AVB reviewwill identifylessons learned for futureconsiderationwith existing commercial interests(AVE) and anyfutureventures.

 

The Council’s managementcontinuedtoconsideredtherisksarising following theBrexitdecision.  Atthisstagethere was toomuch uncertaintyaboutthe specificimplicationson thestrategic objectivesand daytodayoperationsof theCouncil to putanythingmeaningful on theCRR.

 

Members challenged robustly some of the assumptions made in the CRR, both in specific and general terms.

 

Members requested further information and were informed:-

 

(i)            Vale Lottery – that in addition to an internal audit, Vale Lottery had also passed an audit inspection by the Gambling Commission in October 2017.

 

(ii)           Carillion – that while the Council had no direct exposure to Carillion, it was possible that some of the contractors that the Council worked with would have some exposure.  AVDC would continue to monitor this situation.

 

(iii)          With regard to the layout of the Corporate Risk Register, it was agreed that:-

·                     Risk Owner – would include an individual contact person, as well as a Board name, if this was applicable.

·                     Completion Date – that all Risks would have a milestone completion date.

 

Action Point: Advice to be sought on the need for Corporate Risk Register items to be included in Part 2 of the agenda.

 

RESOLVED –

 

That the current position of the Corporate Risk Register be noted.

Supporting documents: