Issue - meetings

Report to follow

The Committee resolved to note the significant strategic risks and issues highlighted in the report.

The Committee were advised that work was currently being undertaken on this document to create a shorter, more focussed version. Report templates were also being reviewed with a view to changing them so that the risk element would be made more prominent so that Councillors were aware of all possible risks before making an informed decision.

The Committee resolved to note the significant strategic risks and issues highlighted in the report.

To consider the significant strategic risks and issues highlighted in this report and present these to the Corporate Policy and Resources Committee, ensuring continued wider reporting of the Corporate Risk Register and actions across other Committees.

The Committee received a report on the Corporate Risk Register from the Deputy Chief Executive. The report highlighted the Council’s continued efforts to identify, monitor, and manage its most significant strategic risks in relation to the delivery of corporate priorities. Members were advised that the Register had been revised to reflect updated risk scores and subject area consolidations, as previously agreed by the Committee, reducing the Register to 16 key areas. New risks, including the Council’s response to external audit and inspection recommendations and the implications of the proposed local government reorganisation, were noted. The Register will continue to be reviewed regularly in line with the Audit Committee cycle, and further updates will be made as required, particularly in light of potential Government-led intervention following the recent Best Value Inspection.

In reviewing the Corporate Risk Register, some members raised concerns regarding the high scoring of certain risks related to Local Government Reorganisation, suggesting that a score of 16 may be premature given the current uncertainty around its impacts. The Deputy Chief Executive noted that the level of uncertainty itself was contributing to the elevated risk score and that scores could be reviewed once greater clarity emerges.

The Committee questioned whether the identified risk owners were appropriate, suggesting that responsibility should lie with those who have operational oversight. In response, the Deputy Chief Executive, Lee O’Neil, confirmed that operational officers do provide input, with an emphasis placed on lead officer accountability. A member of the Committee observed that some references in the report, including to the Business, Infrastructure and Growth Committee (BIG) and Ashford Victory Place site, appeared outdated and required revision. Another member also proposed including a “last updated” field for each risk category to improve clarity and transparency. Lee O’Neil agreed to explore this enhancement across all risk areas.

The Committee resolved to consider the significant strategic risks and issues highlighted in this report and present these to the Corporate Policy and Resources Committee, ensuring continued wider reporting of the Corporate Risk Register and actions across other Committees.

To Consider the significant strategic risks and issues highlighted in this report and present these to the Corporate Policy and Resources Committee.

Due to time constraints, this item was not discussed at the 28 January 2025 meeting and will instead be considered at a carry-over Audit Committee meeting on 25 February 2025.

Discussions recorded at the Carry-over Audit Committee, 25 February 2025:

Councillor Williams joined the meeting at 18:44

During the Carry-over Audit Committee meeting on 25 February 2025, the Corporate Risk Register report was presented by Lee O’Neil, Deputy Chief Executive. The report highlighted significant strategic risks and issues, which were to be presented to the Corporate Policy and Resources Committee for wider reporting and action across other Committees. Key updates to the report included Surrey being in the first wave of Local Government Reorganisation, leading to changes in risk category nine. Risk category ten had also been updated to reflect actions required to address recommendations made in Grant Thornton’s external Audit reports. It was noted that previously existing risks had not been materially amended and remained the same.

Financial resilience and Commercial Assets saw an increased risk score due  to longer-term sinking fund modelling. The Committee expressed concerns over the modelling explanation, suggesting issues with lease renewals and timings should be detailed in the risk register. It was agreed by officers to expand the modelling explanation and clarified that the sinking fund process was not yet complete, with further reports and external expertise being sought.

The Committee observed that recruitment and retention risks had increased sharply due to reorganisation, and members questioned the rationale behind addressing the external audit recommendations through recruitment. The Deputy Chief Executives acknowledged the challenging environment and the need for skilled staff, while emphasising the importance of various recruitment methods. Housing supply and demand risks had also increased from risk score 6 to 12, with discussions focused on the worsening market and the need for clearer housing figures. It was agreed to make these figures more prominent.

The Independent Member inquired about new additions to the register, such as external audit findings, and the anticipated changes expected before the next committee meeting. It was suggested to consolidate risk subject areas to focus on main issues. Members also proposed using PowerBI to inform members about live movement on specific risks, and Lee confirmed this intention, detailing IT trials in progress and the need to tidy the register first.

The Committee supported the proposed changes to Appendix C through slimming down the register to 16 subject areas and keeping comments current. The committee agreed to make clear to Corporate Policy and Resources Committee that the register was subject to significant modification following external audit report additions.

The Committee resolved to:

1. Consider the significant strategic risks and issues highlighted in this report and present these to the Corporate Policy and Resources Committee, ensuring continued wider reporting of the Corporate Risk Register and actions across other Committees.

2. Consider the proposed changes to the risk categories/risk subject areas outlined in Appendix C