Agenda item

[To receive an update on the key risks the Council faces and how it can gain assurance that these risks are being mitigated]

Hayley Reid, Senior Auditor, outlined the changes to the strategic risk register since the March 2018 meeting of the Committee.

Councillor Harbans Bagri asked whether the Council had made any changes to its management structures as a result of the lessons learned reports on the Markets Relocation, the Interchange (Train Station) and the Civic Halls Refurbishment and whether there were any other old capital projects that may have similar issues to those highlighted in the lessons learned reports. The Senior Auditor reported that work on the abovementioned capital projects had commenced several years ago when different controls were in place.  The new controls and project management arrangements in place would be applied in respect of the three capital projects going forward and for other capital projects.  Laura Palmer, Projects and Programmes Manager added that her team shared information with the Senior Auditor on a monthly basis.  One of the issues from the lessons learned reports was about strengthening existing processes and having open and honest reporting on projects/programmes.

The Chair asked when the Committee would see an indication that the recommendations from the lessons learned reports would be implemented.  The Senior Auditor advised that some of the recommendations had already been actioned and report on progress would be submitted to the meeting on 17 September 2018.

John Humphries, Independent Member commented that given the Committee met quarterly, was there a dynamic reporting mechanism whereby the Chair of the Committee could receive early warning of any problems.  Peter Farrow, Head of Audit reported that he had regular catch up meetings with the Chair and anything of significance would be flagged in those meetings.

Councillor Jasbir Jaspal commented that she was not clear on the role and function of Corporate Landlord and would welcome a briefing. Claire Nye, Director of Finance reported that it could be combined with the report on the Strategic Asset Plan referred to in minute 5 above.  In response to a further question from Councillor Jaspal on Finance and Legal Services input and involvement in contracts for capital projects, the Director of Finance reported that her team had a lot of involvement in projects. The lessons learned report addressed the point of the Procurement Team’s involvement in projects at an early stage. The Strategic Finance and Procurement teams were getting stronger.  Legal Services would also be involved in the drafting of contracts.

Councillor Barbara McGarrity noted that risk 30 - Civic Hall was categorised risk red.  She asked when the Committee would receive regular updates on the costs of the programme.  The Head of Audit reported that the Committee’s role would be to monitor progress on the implementation of the recommendations from the lessons learned report and to provide independent assurance on the adequacy to the Council of the risk management framework and internal control environment.  Where appropriate costs would be included in the update report to Risk Register report, otherwise the Cabinet (Resources) Panel as well as the appropriate scrutiny panel would be monitoring the costs of the programme.

Councillor Harbans Bagri noted that the Council secured external support/advice for some of its projects.  He asked what in house evaluation the Council carried out on the costs and delivery of projects and whether the Council followed any Government standards.  The Chair advised that part of the role of Bob Hide, Equib would be to undertake benchmarking and provide that oversight for the Committee and the Council.  Bob Hide, Equib then went on to explain in more detail his role to make sure that the benchmarking scrutiny is there.

Referring to the risk 9 - City Centre Regeneration, Councillor Jasbir Jaspal commented that a lot of regeneration activity was taking place in the city.  She asked for an update on the city’s regeneration strategy.   The Chair advised that the Cabinet Member for City Economy attended a recent meeting of the Stronger City Economy Scrutiny Panel where a discussion took place on the draft Strategic Economic Plan.  He did not wish to duplicate those discussions.  He also reported that the Committee received an update on City Centre Regeneration from Paul Lakin, Head of City Development at its meeting on 12 March 2018. He suggested that the appropriate officer could be invited back to a future meeting.

Referring to risk 8 – Business Continuity Management, the Chair asked when the transfer of the day to day management and delivery of the Council’s Emergency Planning and Business Continuity management service to the West Midlands Fire and Rescue Service (WMFS) under a Collaborative Agreement would happen and whether WMFS were happy to enter into this type of agreement with the Council. The Senior Auditor reported that they were working towards it happening in the summer and that as far as she was aware the WMFS were happy with the arrangement.

The Chair suggested that risk 32 – Waste Management Services be considered at the next meeting and the risk owner be invited to attend.

Resolved:

1.    That it be noted that three new risks have been added to the register:

·         Risk 32 – Waste Management Services

·         Risk 33 – Governance of Major Capital Projects and Programmes

·         Risk 34 – Wolverhampton Interchange Programme (Train Station)

2.    That it be noted that Risk 31 – City of Wolverhampton College had been archived, a memorandum of understanding has now been agreed.  A low-level risk has been added to the Corporate department’s risk register regarding the ongoing partnership with the College and a possible call on guarantees provided by the Council.

3.    That the change in the target date and target score for the following risks be noted:

·         Risk 7 – Safeguarding

·         Risk 22 – Skills for Work and Economic Inclusion

·         Risk 24 – Maximising Benefits from the Combined Authority.

4.    That risk 32 – Waste Management Services be considered at the next meeting and the risk owner be invited to attend.