To receive Report No. 166/2021 from the Strategic Director of Resources.

Report No. 166/2021 was received from the Strategic Director of Resources, Saverio Della Rocca, who presented the report which presented the Strategic Risk Register to the Committee and methods used to address the risks contained within the Register.

In response to questions, it was confirmed that the Resilience Partnership at Risk 3 referred to the Local Resilience Partnership across Leicester, Leicestershire and Rutland. Several concerns were expressed over the closing of Risk 76 when work was still ongoing, however the Strategic Director for Resources gave assurance that the important actions mitigating the risk were underway and this was the reason behind the closing of the risk.

It was also agreed that large proposals such as the new Local Plan would create risks of deliverability for the Council, and the Strategic Director for Resources suggested that these pressures may lead to demands for external resourcing and higher funding in order to ensure sufficient capacity.

RESOLVED

That the Committee NOTES the content of the Strategic Risk Register in Appendices A and B to the report, and the actions underway to address the risks.

The Strategic Director for Resources and Head of Internal Audit, Rachel Ashley-Caunt, then presented the draft Internal Audit Report examining the Council’s approach to risk management. It was explained that it was considered appropriate for each directorate to establish and maintain their own risk registers to sit beneath the Strategic Risk Register. It was highlighted that there remained concerns around staff capacity, and it was explained that Internal Audit had been approached to provide 15 audit days of facilitative support to directorates with their risk registers.

It was clarified that Zurich Municipal, the Councils insurers, had agreed to provide support in initially establishing the registers at no cost to the Council, and Internal Audit’s role would then be in supporting directorates to facilitate the maintenance and updating of these risk registers from 2022-23 on an ongoing basis.

Members supported the principle of directorates maintaining their own risk registers but expressed a number of concerns regarding the proposed impact on the amount of audit assignments undertaken by Internal Audit having re-directed 15 days away to assisting directorates. It was also noted that the Internal Audit Plan for 2022-23 would be formally agreed by the Committee at a future meeting and this would include setting out areas where assignments would be subsequently unable to go ahead.

In response to these concerns, it was set out by the Strategic Director for Resources and the Head of Internal Audit that supporting the maintenance of risk registers would not detract from Internal Audit’s duty to audit the Council and would be as valuable to Internal Audit’s work as the audit assignments that may be displaced, through providing an insight into work across all directorates in managing risk.

The Head of Internal Audit also assured members that she had duty to undertake sufficient work to provide an end of year opinion and that providing risk management support would not compromise this obligation.

Concern was also expressed regarding the general impact on staff capacity to maintain the registers even with support from Internal Audit, and the Strategic Director for Resources gave assurance that all Members of the Council’s Strategic Management Team had been able to agree and support the creation of risk registers for their directorates and would be able to deliver these.

RESOLVED

That the Committee NOTES the Internal Audit risk management draft report at Appendix C and notes the proposed response in 3.3.2 and 3.4.2 of the report and the impact on resources.

The Strategic Director for Resources then provided a brief update on a current CIPFA consultation regarding treasury management, which included proposals to prevent local authorities from borrowing for investment purpose although it was highlighted that the proposals were not final. The Strategic Director for Resources explained that the Council would look to pursue a cautious policy and would not undertake significant borrowing for commercial investment but it was noted that some investments might have both a financial objective alongside a service priority e.g., provision of local services.