Meeting documents

To consider the attached report.

Contact Officer:  Kate Mulhearn (01296) 585724

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 Strategic Board.  Some of the risks were not dissimilar to those faced across other local authorities. 

Since the last Audit Committee meeting in October 2018, the Secretary of State had announced his decision for a single unitary district council for Buckinghamshire.  The CRR had been fully refreshed and updated to reflect the changing context for AVDC risks.  The CRR had been reviewed by Strategic Board on 9 January 2019 and by Cabinet on 14 January 2019.

Members were informed that the unitary decision had significantly increased the overall level of risk within the Council.  2 new risks had been added and the ratings of other risks had been increased.  This reflected the impact of both the level of uncertainty over the influence of the Shadow Authority and the high likelihood of the loss of key staff, on AVDC’s ongoing ability to deliver its objectives and services in line with the current business model.

The background and comments against each risk was included in the report, as well as a summary in relation to residual risk ratings.  There were now 23 risks on the Corporate Risk Register.  The changing risk profile over time was as follows:-

The extreme risks related to:-

·                    Unknown impact of the influence of the Shadow Authority on AVDC’s ability to deliver strategic goals and priorities in line with agreed objectives and the current business model.  Focus on priority projects and planned transformation could diminish with the competing demands of the unitary authority.

·                    Deterioration in core services delivery due to loss of key staff and the inability to recruit or retain high performing staff.  Poor morale, or lack of foreseeable opportunity leads to "the best" seeking alternative employment, or not being willing to join AVDC.

·                    Lack of clarity and/or political engagement with partners hinders ability to engage in and influence next round of growth including consideration of CaMKOx Corridor, HS2, housing need targets.  A Bucks wide plan could result in even more housing growth in the Vale geography.

·                    Depot transformation Programme failed to deliver commercial, customer, health and safety, and environmental objectives.

The risk relating to failing to deliver the Commercial Property Investment Strategy and achieve the planned return on investment had not yet been fully assessed and rated as the viability and priority of the investment strategy needed to be reviewed in light of the Unitary change.

Members requested information and were informed:-

·                    that existing controls, mitigation and proposed actions to be taken in relation to the loss of key staff was detailed in the CRR.  This had been recognised as part of the budget setting process and an allowance for possible additional costs had been made for the 2019/20 financial year.

·                    that AVDC’s senior management and Cabinet Members had held a number of information sessions with staff to keep them up-to-date on arrangements for the new unitary authority.  The sessions had also allowed staff to raised their concerns.

·                    that, in due course, the Shadow Authority would have an Implementation Plan, Programme Directors and Management Team, which would direct the transition programme to the new Buckinghamshire Authority.  An Implementation Risk Register was being developed with input from the 5 Councils.  At the same time, AVDC would continue to monitor and report its own CRR and look to carry on with business as usual until the new Council was in place.

·                    that the Buckinghamshire authorities, apart from the County Council, shared their respective CRRs as public documents.

RESOLVED –

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