Agenda item

Report of the Executive Director (Finance and Transformation)

The Executive Director (Finance and Transformation) introduced the report which set out the current identified strategic risks facing the Council, and those operational risks assessed as having a residual risk level of serious or severe (those with a score of 10 or more) as previously presented to Cabinet. The report was an assessment of risk as at 30 June 2024. Issues highlighted were:

-        The increased risk of industrial action since the last quarter: two trade unions had rejected the National Joint Committee’s pay offer and had stated their intention to ballot their members on possible strike action.

-        Following reassessment, the score for the risk of failing to comply with the Regulator of Social Housing’s regulatory standards had been reduced, there was good governance in place and at the end of June 2024 around 62 of the 100 actions on the action plan were complete or in progress.

-        The risk around resilience and business continuity had been reduced; since the last quarter there had been an update to the emergency plan, an update to the reception centre plan, and a new rota was in place for gold, silver and bronze officers who had all received training.     

No other strategic risk scores had changed.

The following points were made during the discussion:

-        A member wondered if a period of deflation might be starting and wondered whether the Council was modelling and forecasting for that and if so, whether that would be viewed as positive or not. Officers explained that as part of the medium term financial strategy calculations which were currently being revised, they would use three scenarios as they had done for the last few years: a standard approach using standard assumptions made by the Bank of England, and also an upside risk and downside risk, each of which would be included in the report.

-        Regeneration and economic development in relation to recruitment and retention had a high residual risk and a member asked for more information. Officers advised there were some vacancies in the team although there were now some additional staff and agency workers and the Council was making more use of the property framework through contractors. The risk remained as these were short term arrangements and it was a difficult field to recruit to which other local authorities were also finding, so it would remain as a high risk on the register until the team had longer term resources. There was no one single factor causing the situation and officers across Hertfordshire had discussed working together to recruit to roles. Salaries were lower than they were in the private sector making it more difficult for local authorities to compete and there were skills gaps although the Council looked at ways to develop people into the roles.

-        The residual score for poor housing void management had increased but the commentary said there had been an improvement and a member asked for clarity. Officers said more work was being done to bring voids up to standard which represented challenges and although there had been an improvement in the contract, performance was still not meeting targets. The Executive Director (Finance and Transformation) undertook to see the risk management commentary was updated with a fuller explanation.

RESOLVED

Audit Committee:

1)     Noted the risk registers at Quarter 1; and

2)     Noted comments and actions in respect of the strategic and serious/severe operational risks.