Agenda item

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

4.1       The Executive Director Finance and Regulatory, Mr David Robertson, was in attendance to brief the Committee on the strategic risks facing the various sections within Finance and Regulatory Services and to explain the internal controls and governance in place to manage and mitigate those risks.  Mr Robertson explained the areas of service he managed, namely: Financial Services, Legal and Protective Services, ICT Client Services; Commercial & Commissioned services, and Pension, Investment and Treasury.  Risk Registers for each of the services were developed through Financial, People and Business Planning processes and were owned by Service Managers within that service.  Risks were regularly reviewed by the Services Management Team and when necessary, were escalated to Corporate Management Team (CMT).  

4.2       Mr Robertson referred to the key overarching issues facing Finance and Regulatory Services namely ongoing financial pressures, recruitment and retention, new legislation, customer demand and expectations, IT reliance, and changes to service delivery models. Mr Robertson then went on to give a brief overview of the risks within each service.  With regard to IT Infrastructure, a red risk had been identified as ongoing delays with a number of ICT infrastructure projects which were fundamental to the Council’s Transformation programme.  Focus on the Peebles High School fire had diverted resources away from transformation activity to enable disaster recovery.  The delivery of the Transformation programme would be reviewed with CGI and projects which delivered the most benefit would be prioritised.  In terms of IT Data and System Security, there were ongoing discussions with CGI about PSN accreditation renewal with the Cabinet Office as the Council’s status was under review.  There was a likelihood that the risk would increase from 2 to 4.  In terms of Budgetary control, a red risk was identified in respect of the ongoing issue in the current financial year with management of the SBC budget and non- delivery of financial plan savings.  There was dialogue with budget managers, reporting to CMT and identifying compensating actions elsewhere in order to balance overspends in H&SC.  In terms of Government Funding, the LG Finance Settlement published on 6 February 2020 allowed the Council to set the budget for 20/21.  In 19/20 an enhanced reconciliation had been provided by COSLA to track specific funding streams from Settlement to Settlement.  The uncertainty with regard to the overall quantum of the LGFS and potential Council Tax flexibility remained a risk.  There had been no changes in respect of Pension Fund instability, Legislative Compliance and Elected Members.  Mr Robertson explained that management of risk was an integral part of the Council’s Financial Strategy and included regular monitoring of both corporate and operational risks within Services.  Mr Robertson responded to Members’ questions on flu injections for staff, the extensive IT programme, the use of process mapping, the relationship between SBC, NHS and the IJB, and the Pension Fund.  The Chairman thanked Mr Robertson for his presentation and advised that the Social Work Department would present next.

DECISION

NOTED the presentation on risk management in Finance and Regulatory Services