Agenda item

The Council’s Risk Champion, Councillor R. Bailes presented to the Board.

A meeting was arranged with Chris Green, Internal Audit Manager on 3^rd January 2025 concerning discussions and confirmations of Audit opinion regarding the risks for 2025/26. 

The meeting followed publication of the English Devolution White Paper which impacted on the risk outlook and profile for BDC.  The paper published on 16^th December 2024 was reviewed by the Risk Champion to assess and highlight the risk appetite and impact to the Council.

The Risk Champion felt that it was imperative that all Members fully read, digest and understand the outcomes of what was included within the paper.  The information given to Local Authorities would have a major impact on all aspects for BDC which had ultimately changed the risk profile and altered the assessment of risks.  The Risk Champion advised that all Members should be aware of the changes that would be taking place, to be well informed and to make considered decisions.  It was felt that all Members shared accountability to manage risk and considered mitigating future risks to the Council.  It was also considered that a Members’ role was to serve the residents and manage a smooth transition.

The Risk Champion posed the following rhetorical questions to Members, associated with the White Paper:

1.    Have Members read the White Paper?

2.    How easy was it to understand?

3.    What more can the Council do to assist Members’ understanding of what is included in the White Paper?

4.    How can Members ensure to act in a fit, legal and decent way?

5.    If Members wished to share thoughts with the Risk Champion directly.

The critical risks after consideration of the English Devolution White Paper were identified as follows:

Workforce

1.    The effects on workforce which could affect productivity and attendance rates.

2.    Would Line Managers be effective in their role to motivate Teams through the changes.

3.    Having a fallback position to keep services running if employees considered to leave the Authority.

4.    Motivating teams and staff to deliver the required standard.

5.    Decision making structure to operate effectively.

6.    Would the appointment of future Senior Executives be affected.  Would they possess the skills necessary for a different landscape? What was their experience of winding down a service whilst maintaining service delivery?

 Operational Impact on District Council

1.    Finance and Budget Management had announced changes to the local Government funding.  Members were required to assess the impact of the changes through Audit, Standards and Governance Committee.

2.    No inflation markers on funding received.

3.    Set increases on Council Tax could result in a shortfall of the budget.

4.    Projects that were underway and had an extensive completion date.

5.    Managing spends appropriately and responsibly for residents.

6.    If the Portfolio Holders had the ability to cope with the impact of the extra work considerations required.

Continuity of Council Strategic Plans

1.    Making sure that all decisions were made effectively, had longevity and a positive result achieved for residents.

2.    Managing the finance and budget decisions were fit, legal and satisfactory.

3.    Communication streams were in place for Employees, Members and Residents.

4.    Ensuring outstanding projects were delivered on time.

5.    Setting up correct channels for due diligence and information sharing with the new Authority and Parish Councils.

6.    Completion of outstanding audits contracted to consultants (such as Play Audit).

7.    Revising any initiatives or plans that could exceed the handover date.

Members were also informed it was anticipated that The Environment Act was to be published within the following months which would have an impact on risk appetite and operational continuity.  It was Members’ responsibility to read and understand the contents.

Following consideration of the presentation concerning the Devolution White Paper, Members discussed the following:

• It was suggested that Members may want to discuss their concerns with the Risk Champion on an individual basis.  The Chairman added that he would be happy to review and assist the facilitation of any suggestions raised.

• Some Members felt that it was difficult to be pro-active and assess mitigating the risks to the Council without the full facts of the devolution being received.  However, other Members felt it was important to be pro-active and that residents had assurances that the Council were being proactive in mitigating the risks.

• The Parish Council’s representative raised concerned of how future communications would be facilitated to Parish Councils and agreed that Members should work through reviewing risks diligently and felt it was important a clear direction with good communication of progress should be considered.

• It was suggested that Members of the Audit, Standards and Governance Committee were provided with the specific powers and influence available to assist with scrutinising and mitigating the necessary risks. – The Section 151 Officer advised Members that it was important the Local Authority used the available resources in an effective way and followed the necessary policies available.  It was agreed that the Section 151 Officer would review the powers of scrutiny available for Members as an action.

• The Chairman concluded that in terms of governance, it was important Members be proactive in reviewing risk as part of their remit.

RESOLVED that the Risk Champion update be noted.</AI9>