Agenda item

REPORT OF THE HEAD OF FINANCE, PERFORMANCE AND ASSET MANAGEMENT

To consider a Risk Management Update and the Annual Report on Risk Management 2016/17.

RECOMMENDED TO CABINET: 

(1)  That the reduction in the score for the “Increased Homelessness and use of B   & B” risk from a 7 to a 5 be approved;

(2)   That the reduction in the score for the “Office Accommodation” risk from a 7 to a 5 be approved;

(3)   That a reduction in the likelihood score for the “Sale of Materials” sub-risk to a 2 – Medium – be approved; and

(4)   That the Annual Report on Risk and Opportunities Management 2016/17, as set out at Appendix B to the report, be supported and referred to Council for approval.

REASON FOR DECISION:  To comply with the Risk and Opportunities Management Strategy, which stipulates that an Annual Risk Management report is taken to Council.

The Head of Finance, Performance and Asset Management presented a report which provided an update on Risk Management and the Annual Report on Risk Management 2016/17.

The Head of Finance, Performance and Asset Management advised that, in March 2017, officers reviewed the “Increased homelessness and use of B&B” risk and reduced the likelihood risk score to “Medium” (2).  Use of B&B accommodation had consistently reduced over the last year and at the time of the review, there were no homeless households being accommodated in B&B. The current level of homelessness within the District was being managed using available temporary accommodation units.  However, officers noted that this was a challenging issue and that demand could be unpredictable.  Therefore, the risk would be subject to quarterly reviews.  The proposed change would move the Homelessness risk from a 7 to a 5 on the Risk Matrix.

In respect of the “Office Accommodation” risk, the Head of Finance, Performance and Asset Management commented that Willmott Dixon had commenced work on site on 6 March 2017.  They were currently undertaking asbestos removal and demolition works and were on schedule.  Some unforeseen issues had been identified during the works and these were being assessed.  Any solutions required would be financed from existing budgets.  In view of the progress made and the Council's commitment to complete the refurbishment, Officers had reduced the Likelihood risk score to "2- Medium.  This proposed change would move the Office Accommodation risk from a 7 to a 5 on the Risk Matrix.

With regard to the “Sale of Materials” sub-risk, the Head of Finance, Performance and Asset Management stated that the likelihood risk score had been reduced to 2-Medium, as a new contract had been procured for mixed recycling services until May 2018.  Currently, a saving against budget was predicted.  This proposed change had no effect on the placement of the Waste and Street Cleansing Contract Renewal risk, which remained as 8 on the Risk Matrix.

The Head of Finance, Performance and Asset Management referred to the Annual report on Risk Management 2016/17, as attached at Appendix B to the report.  He summarised the significant changes to the Top Risks which had occurred throughout the year, and drew attention to work carried out on the Insurance Review, Business Continuity and Health and Safety.

In respect of the “Increased homelessness and use of B&B” risk, a Member asked for details of the Homelessness Reduction Bill.  The Committee was informed that this Bill had received Royal Assent in April 2017.  Officers undertook to provide Members of the Committee with details as to what was proposed in the Bill.

RECOMMENDED TO CABINET: 

(1)  That the reduction in the score for the “Increased Homelessness and use of B   & B” risk from a 7 to a 5 be approved;

(2)   That the reduction in the score for the “Office Accommodation” risk from a 7 to a 5 be approved;

(3)   That a reduction in the likelihood score for the “Sale of Materials” sub-risk to a 2 – Medium – be approved; and

(4)   That the Annual Report on Risk and Opportunities Management 2016/17, as set out at Appendix B to the report, be supported and referred to Council for approval.

REASON FOR DECISION:  To comply with the Risk and Opportunities Management Strategy, which stipulates that an Annual Risk Management report is taken to Council.