Agenda item

The Committee was requested to view the Quarter 1 Corporate Risk Register Update. The Policy Partnership & Involvement Manager explained to the Committee that the role of audit was to assess risk management processes. Cabinet also received risk updates.

Main Points:

It was confirmed that the Risk Management Policy was being redrafted and would be presented to a future Audit Committee with changes. 

At the end of Quarter 1 there were 7 High Level risks identified (risk scores 15-25) and 5 medium risks identified (risk scores 5 to 14).

At the end of Quarter 1 there were 12 corporate risks which consisted of 8 high and 4 medium risks. Appendix 1 of the report provided a summary of the new Corporate Risk Register 2019/20.

The summary of risks were as follows:

•A new risk identified as Demand for Additional Learning Needs (ALN) and Special Educational Needs support had been added in.

•The Brexit Risk was carried forward into 2019/20 and its risk score had been increased to 16 and reflected the current ever-changing situation.

Questions:

A Member commented that they thought that the process was fine but queried the rise in risk in Newport Councils Property Estate which had a risk of 16 and where did the Committee query this. It was confirmed that Cabinet looked at the scores and that the Audit Committee should not query the detail of the risk.

A Member commented that the new risk of Educational Out of County Placements was a surprise as it was thought that this area was fine due to a new building that had been sourced for Looked after Children needing placements. 

The Policy Partnership & Involvement Manager confirmed that this was an education risk in relation to the new education requirements, which is what the risk referred to.

It was discussed how the Social services risk was a risk involving the whole Council but this Education risk was a higher risk than that and that these 3 Educational risks compound on each other.

The Chair mentioned that the Committee looked at the general process but that there could be a possible change in audit, so at that stage, we could look at this in future. This change could occur in about 18 month’s time.

It was questioned as to who was responsible for the Brexit issues and it was confirmed that Cabinet was responsible for this issue. The total risk register was managed by Cabinet and the process was reviewed by Audit. 

It was discussed how Brexit affected all things but some were more impacted than others and the Chair confirmed that it was a valid question.

It was confirmed that all Members could attend briefing sessions in relation to Brexit. 

A Member had a question regarding school financial pressures and what they would look like in Quarter 2. It was discussed how some schools were struggling with deficit and that Education Services and the Finance teams were working together to reduce this deficit.

At the end of Quarter 1 the risk of schools presented as showing a deficit and scored a high risk and a member asked why there was a deficit and what would happen. The Chair commented that this was maybe an issue for Scrutiny. 

The Chair also commented on the Risk Score Profile table on page 17 and what the Committee wanted the risk to become and should there be a comment to say how it would be reduced. The Chair also commented that it would be useful if there was a column to see the direction of risk.  

A Member asked how we knew that the assessment was correct, the implication of Brexit could be years ahead and as a Council we were occupied by Brexit but could we do much about Brexit. The Member also questioned whether this risk was overestimated.

The Policy Partnership & Involvement Manager confirmed that there were many things the Council could do regarding Brexit and the individual areas impacted were scored. In relation to the risks escalated there was a further review by the senior leadership teams, which was then further agreed at Cabinet. A presentation of this process will be presented to the Committee in a future meeting.

There was a query regarding paragraph 3 on page 13 in relation to Risk Appetite and whether there was one at the moment.

It was confirmed that a new Risk Management Policy would replace the current Risk Management Strategy and there were some discussions being held with Cabinet Members as to what a Risk Appetite should be. The new strategy would be assertive as to what this was. It was explained that there was an evolving risk appetite so this was not reflected in risk policies. 

In relation to the risk regarding vulnerable children there was caution in this area. The Chair commented that in relation to Financial Controls should there be a bit more risk and it was agreed that this could be expressed better.

The Chair commented that it was limited as to what Members could do, the Committee could query the process but the Committee could not say one figure should be another. Welsh Government could determine that this could alter and maybe Audit could make decisions of this kind in the future.

It was suggested that maybe it would be helpful in a future agenda for the Committee to receive a presentation on the Risk Process.

The Chair confirmed that they attended an Audit Committee Chairs Conference where a consultation document was being considered and the plan was for Welsh Government to agree to the document, subject to consultation where it would then be widely circulated.

Audit Committee therefore might change and so the plan would be brought to the Audit Committee in the future.

Agreed:

For the Audit Committee to receive a presentation on the Risk Process at a future Committee.