Agenda item

The Performance Officer introduced the Whole Authority Strategic Risk Assessment. Following presentation of the report, comments and questions were invited:

·         Locally Managed School Budgets: A Member commented on the collective net deficit balance of £435k for the current financial year and the Month 9 analysis indicates further decline taking the overall forecast deficit to £166,000 and queried if the statement was correct.

·         Investment Committee: A Member referred to the work of the Investment Committee noting the shortfall in rent covered by Welsh Government.  A forecasted combined overspend of £836,000 was queried. The Member asked if this is an exclusive figure unrelated to the income generated from Newport Leisure Park and Castlegate. It was responded that this amount relates to the income shortfalls separate to the funding received from the Welsh Government Covid 19 Hardship Fund. The net loss is significantly less as losses have been heavily offset by hardship funding.

·         Procurement: Regarding the implementation of the Procurement Strategy, it was noted a strategic review has taken place.  In response to a question, it was noted that the subsequent report is subject to individual Cabinet Member decision and was part of the budget consultation at the last meeting of the County Council.

·         Infrastructure: A Member queried why infrastructure had reduced from high to medium risk.

·         Solar Farm: A Member queried the restrictions in connecting potential new energy generation to the national grid that limit the ability to develop new solar farms and asked how this will be resolved. The Chief Officer, Resources explained the restrictions on the national grid prevalent in South East Wales impacted on the ability to create further solar farms. This is the subject of ongoing dialogue with energy companies. The possibility of battery storage to hold energy when there is available capacity is being explored as an option.

·         The Chair queried the role of the Audit Committee in scrutinising the strategic risk assessment.  The Performance Manager explained that the Committee must reassure itself on risk management arrangements. The risk owner provides updates within the risk management process. Whilst it may not be  feasible for risk owners to be present at meetings, in undertaking scrutiny, the Committee may request that technical points are raised outside the meeting. Matters requiring further explanation can be considered by the appropriate Select Committee.

·         A Member requested an update on the redeployment of Internal Audit staff to the TTP function.  Assurance was provided that the team provided assistance from January 2021 onwards. By 1^st March 80% had returned to their substantive roles.  One member of staff remains on a longer term secondment to assist with the administration of business grants.

·         The Chair questioned risks not mitigated after actions are taken (e.g. Risk 1 Potential Risk that: The authority does not remain relevant and viable for future generations due to not having a sustainable delivery model) referring to the disruption caused by the pandemic and flooding; circumstances that have prevented further mitigation. It was explained that various factors influence each risk and are taken into consideration in liaison with risk owners, taking into account how far it is within the Council’s control to mitigate the risk. All risks are kept under continuous review and take account of mitigation measures. Risks may be reassessed if there are changes. 

The Audit Committee agreed the report recommendations that:

1.    Members use the risk assessment to consider the effectiveness of the authority’s risk management arrangements and the extent to which the strategic risks facing the authority are appropriately captured: and

2.    That members scrutinise, on an on-going basis, the risk assessment and responsibility holders to ensure that risk is being appropriately managed.