Issue - meetings

To note the report by the Internal Audit Manager.

The Internal Audit Manager presented a report to the Committee setting out the most significant risks and opportunities to Spelthorne Borough Council relating to the Covic-19 pandemic.  The risk assessment attached as Appendix 1 to the report detailed the risk categories, set out mitigation measures and identified actions considered necessary.

The Committee noted that financial sustainability was highlighted as a red risk and asked what indicators were used to measure this and the thresholds for success and failure.  The Deputy Chief Executive advised that extensive, regular monitoring of a number of areas including rental income, performance and budget monitoring of quarterly periods, sinking funds, council tax and business rate collection took place. The Council also shared, along with other Surrey local authorities, access to recognised experts in this field and had asked them to provide additional monitoring advice across all income streams as an additional health check.  Regular feedback was also provided to Cabinet and the Overview and Scrutiny Committee. 

It was anticipated that the rating for financial sustainability would remain at red until there was a clear understanding of the broad economic impact on the borough of Covid-19, particularly taking into account impacts on the airport and logistics industry, retail sector and the ending of the furlough scheme in October and the national government’s local authority funding stance among other considerations.

The Committee were advised that the Covid-19 risks would be maintained for the remainder of this financial year and reported to Audit Committee.  The situation would then be reviewed.

The Committee thanked the Internal Audit Manager for a comprehensive report and resolved to note the contents of that report.