Agenda item

The Leader presented the report which provided an update of the Corporate Risk Register for the end of Quarter 2 (30^th September 2019). 

Cabinet was asked to consider the content of the report and note the changes to the risk register for the end of quarter 2.

The report confirmed the Council’s Risk Management Strategy and Corporate Risk Register enables the administration and its officers to effectively identify, manage and monitor those risks which could prevent the authority from achieving its objectives set out in the Corporate Plan 2017-22 and its Statutory Duties as a local authority.

The report further explained that every year, as part of the Council’s planning arrangements, service areas review their current risks and look at new or emerging risks that would prevent the administration from achieving its objectives as part of the Council’s Corporate Plan.

The Quarter 2 risk report will be presented to the Council’s Audit Committee in January 2020; Audit Committee review and monitor the risk management and governance arrangements.

The report noted 12 risks have been escalated to the Council’s Corporate Risk Register requiring monitoring from Cabinet and the Senior Leadership Team.

The remaining risks will continue to be monitored through the Council’s service areas and Corporate Management Team.  Mechanisms are in place to escalate any new or existing risk to the Corporate Risk Register. 

At the end of Quarter 2 (1^st July 2019 to 30^th September 2019) the Council had 9 High risks (15 to 25) and 3 Medium Risks (5 to 14).  In comparison to quarter 1, there were no new risks and no risks were closed.  However, 2 risks had increased from Medium to High level risks. The scores of risks that increased were:

·         Demand for Additional Learning Needs (ALN) and Special Education Needs (SEN) support (Risk score increased from 12 to 20)

§  This risk relates to new legislation being introduced and unknowns in relation to its potential impact on Education services and school support in the city.

§  ALN funding models were reviewed in a local authority and headteacher working group during quarter 2. It was evident that due to a rise in the general school population there has been an increase in ALN pupils which has put additional pressure on the existing ALN funding. 

§  There is an expectation that schools supplement their allocated ALN funding, however, due to the increase of statemented and funded pupils the per pupil ALN funding does not reflect the amount required. 

§  A one year funding model was agreed with further meetings to take place during summer 2020 to develop a long term funding model.

·         In-year financial management (Risk score increased from 8 to 12)

§  The Council’s Finance Service at the end of September shows a forecast overspend of £700k.

§  Whilst the impact of an in-year overspend will have a detrimental effect on the level of reserves, it is not something the Council could not cover in the short-term. 

§  These overspends continuing in the medium term will need to be brought under control to prevent an impact on the financial resilience of the organisation.

§  Appropriate action will be needed to bring this overspend under control; however, a risk remains that demand and cost for services continues to increase by more than is currently projected.

Cabinet Members were asked to agree the contents of the Quarter 2 Risk Report and continue to monitor progress of actions taken to reduce the impact of the risks in the report.

Decision:

Cabinet approved the contents of the Quarter 2 Risk Report and agreed to continue to monitor progress of actions taken to reduce the impact of the risks contained in the report.