Agenda item

Presentation by Executive Director (Commercial) on the strategic risks facing the service and the internal controls and governance in place to manage / mitigate those risks to demonstrate how risk management is embedded within services.(Verbal presentation.)

The Chairman welcomed Mr Philip Barr, Scottish Borders Council Executive Director and SB Cares Managing Director.  Mr Barr was in attendance to give a presentation on Risk Management in Arms’ Length External Organisations (ALEOs).   Mr Barr explained that the presentation would detail the internal controls and governance in place to manage risk within SB Cares and LIVE Borders. He highlighted that it was important that there was clarity as to roles and responsibilities, to manage operational risk and maintain a level of service. 

Mr Barr advised that LIVE Borders was an integrated trust for leisure, culture and sports, established in April 2016.  The governance arrangements between LIVE Borders and the Council comprised a Management Team, Board of Trustees, Member-Trustee Liaison Group and Joint Officer Group.  The LIVE Borders Management Team was responsible for the organisation’s business plan and operational delivery and reported to the Board of Trustees, which in turn fed into the Member-Trustee Liaison Group.  This Group met three times a year and was responsible for ensuring ongoing delivery of strategic goals, future priorities and commissioning.  The Joint Officer Group liaised with the Member-Trustee Liaison Group and monitored the provision of the full service.  The Joint Officer Group reported performance to the Council’s Executive Committee and Corporate Management Team.   

Mr Barr went on to discuss SB Cares, a Limited Liability Partnership (LLP) established in April 2015, delivering adult social care services.   With regard to governance, SB Cares’ Managing Director met weekly with the Finance & Commercial Director and Head of Operations to discuss delivery of the service, operational audit assurance and risk management support.  The Managing Director then reported to the SB Cares Board, which met monthly.  The Board monitored progress and performance on service delivery including managing risks and internal audit updates.  The Board then reported to quarterly meetings of the Strategic Governance Group.  The Strategic Governance Group was responsible for ensuring that service objectives were met, and had strategic oversight of internal audit and risk management arrangements.   Finally, the Strategic Governance Group reported to full Council. 

Mr Barr then highlighted key risk considerations for both ALEOs including: alignment to corporate vision and strategic priorities, financial pressures, unpredictability of market, technological change, demand for service and changes to government legislation.  Mr Barr concluded his presentation by referring to the tools and techniques used to manage risk, which included key performance measures which were monitored on a regular basis, self-evaluation, inspections, external scrutiny, regular monitoring of strategic service, operational risk and regular reporting.

In response to questions Mr Barr advised that SB Cares’ monthly, quarterly and annual reports were overseen by Internal Audit.   With respect to the function of the three councillors on the LIVE Borders Board of Trustees, he explained that their role was to ensure LIVE Borders met the goals and aspirations of the Council.    The role of executive and non-executive directors was then discussed and in particular the importance of the non-executive role to hold the Board to account.   With reference to the effectiveness of LIVE Borders Member-Trustee Liaison Group, Mr Barr advised that the Group could influence service delivery on a locality basis.   The Chairman thanked Mr Barr for his attendance and presentation.

The Chief Officer Audit and Risk, Ms Stacey, advised that one of the Audit functions of the Committee was to ensure that risk management mechanisms were working across the entire business.  The previous Audit and Risk Committee had introduced a call-back programme and Members had welcomed its continuance.  The next Committee would receive a presentation from the Service Director Assets and Infrastructure on managing risks in his directorate including those relating to the capital programme. It was agreed that Ms Stacey circulate the schedule for presentations in order that the Committee could communicate the level of detail required from each presentation.   

DECISION

(a)        NOTED the presentation; and

(b)       AGREED to request the Chief Officer Audit and Risk circulate the schedule of forthcoming presentation to Members.