Risk Report, May 2023_FINAL
Renfrewshire Council · 22 May 2023
Back to Audit, Risk and Scrutiny Board — 22 May 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 22 May 2023 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Risk Report, May 2023 ___________________________________________________________________ 1. Summary 1.1 Each year the Board considers and approves the council’s risks. 1.2 This paper sets out the latest position in managing the council’s risks, as we have entered the new financial year. The appendices attached provide details of: • 1: longer-term or imminent strategic risks (from April 2023) • 2: longer-term significant corporate risks (from April 2023) • 3: significant service risks (note nil entry and explanatory note) • 4: the list of ‘business as usual’ risks (ongoing) ________________________________________________________________________________ 2. Recommendations 2.1 It is recommended that the Board approves the report, agreeing with the risks identified. _________________________________________________________ 3. Background 3.1 The key areas of risk previously reported to the Audit, Risk & Scrutiny Board in November 2022 were: Strategic Risks: Very High-Risk Economy Very High-Risk Unemployment Very High-Risk Reducing inequalities High Risk Climate, sustainability & adaptability Corporate Risks: Very High-Risk Financial sustainability Very High-Risk Financial stability High-Risk Cyber attack High Risk Regulatory services/ statutory activities High Risk Commercial vehicle & operator’s license High Risk Tree Fall and Ash Dieback High Risk Asset Management
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3.2 The strategic and corporate risk profile for the council in terms of its longer-term or imminent risks was as shown by the matrix below: Evaluation: Low Moderate High Very High Total LT or Imm Strategic Risks: 00 00 01 03 04 LT or Imm Corporate Risks: 00 00 05 02 07 3.3 Risks are evaluated using the Council’s adopted risk matrix; this involves multiplying the likelihood of a risk occurring by its potential impact. Risks are then evaluated as either ‘low’ (green), ‘moderate’ (yellow), ‘high’ (amber) or ‘very high’ (red). 3.4 It was noted that when service departments had reviewed their top ‘significant’ operational risks (i.e., those evaluated as high or very high) all reported that any such risks were already captured by some strategic and/ or corporate risks. 3.5 The Corporate Risk Management Group has again reviewed the risk profile on behalf of the Corporate Management Team and the current information is now presented to Board, setting out the key risks as we have entered the 2023-24 financial year. 3.6 Movement in risk profile since the previous risk report to Board in November 2022: • Risks removed/ de-escalated Unemployment – this strategic risk had previously been a very high one for the council, but with targeted activities (including job creation programmes and demand led interventions, focus on youth unemployment, working with schools to better prepare pupils for employment, community benefit clauses embedded in procurement activities, enhanced and expanded employability services, and focused partnership working to ensure no-one is left behind), Renfrewshire is now seeing high levels of employment locally. Acknowledging however that there is no room for complacency, we ensure that going forward, employment, unemployment and low-paid employment matters will continue to feature in the wider ‘economy’ risk. • Risks remaining, with scoring/ evaluation changed Nil report for this section. • Risks added/ escalated from service/s to strategic or corporate Nil report for this section. • Risks added/ escalated from 'business as usual’ to strategic or corporate Nil report for this section. 3.7 With paragraph 3.6 in mind, the risk profile is therefore now as follows: Evaluation: Low Moderate High Very High Total LT or Imm Strategic Risks: 00 00 01 02 03 LT or Imm Corporate Risks: 00 00 05 02 07
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3.8 Most services report that any significant service risks are already captured by the above risks with further (less significant) service risks being embedded in their service improvement processes. Following the recent organisation structural changes however, Environment, Housing and Infrastructure Services will be fully reviewing their risk profile to determine if any new significant risks should be captured going forward. 3.9 Horizon Scanning While not necessarily included on risk registers, there are always matters that the Corporate Risk Management Group will keep a watching brief on. Of particular help in this, is the Global Risks Report – a survey produced annually by the World Economic Forum in partnership with Marsh McLennan and Zurich Insurance Group. It is worth noting that the report highlights that the cost-of-living crisis dominates global risks in the next two years, while climate action failure dominates the next decade. Both aspects feature in our local risk reporting. 3.10 Appendix 1 provides the detail for 3 longer-term or imminent strategic risks. Appendix 2 provides the detail for 7 longer-term or imminent corporate risks. Appendix 3 confirms a nil report for significant service risks (over and above service-led risks already in appendices 1 and 2). Appendix 4 outlines our ‘business as usual’ risk areas 1 3.11 The strategic and corporate risks are now aligned with the council plan themes that were approved in 2022. 1 For ‘business as usual’ risks, the council takes a different approach. BAU risks are defined as those not generally related to corporate priorities or ambitions but rather are inherent by nature of our type of organisation. Essentially these are risks we have no option but to live with and manage and monitor. Strategic Risks: Very High-Risk Economy Very High-Risk Reducing inequalities High Risk Climate, sustainability & adaptability Corporate Risks: Very High-Risk Financial sustainability Very High-Risk Financial stability High-Risk Cyber attack High Risk Regulatory services/ statutory activities High Risk Commercial vehicle & operator’s license High Risk Tree Fall and Ash Dieback High Risk Asset Management
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__________________________________________________________________ Implications of the Report 1. Financial Recurring costs associated with the measures in place for each risk are considered proportionate to the level of risk, and new planned actions are also considered to be cost effective. The financial requirements to support the risks should be met within the budget of each relevant risk owner, nevertheless, any unplanned and unbudgeted cost pressures that arise in relation to any of the risks identified will be subject to review in consultation with the Director of Finance and Resources. 2. HR & Organisational Development – not relevant to report recommendations 3. Community/Council Planning – effective risk management supports the delivery of all community/ council plan outcomes 4. Legal – not relevant to report recommendations 5. Property/Assets – not relevant to report recommendations 6. Information Technology – not relevant to report recommendations 7. Equality & Human Rights – not relevant to report recommendations 8. Health & Safety – not relevant to report recommendations 9. Procurement – not relevant to report recommendations 10. Risk – as per the subject matter of this report 11. Privacy Impact – not relevant to report recommendations 12. Cosla Policy Position – not relevant to report recommendations 13. Climate Risk – not relevant to report recommendations _________________________________________________________ Author: Karen Locke, Risk Manager Tel: 07506 957 037, Email: Karen.Locke@renfrewshire.gov.uk
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4 | P a g e Appendix 1: Strategic Risks, longer-term or imminent • ECONOMY – building an inclusive, green and resilient economy Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation SRR.23.01.01 Economy Even before the COVID-19 crisis, the Scottish economy was facing several strategic challenges including climate change, Brexit and lower than average productivity. Likewise, Renfrewshire’s economy was facing challenges such as: growing the working age population; more closely aligning the education and skills provision with the needs of local employers; and achieving a strong and inclusive economy. The risk therefore is that significant economic improvement and upskilling of local workforce is difficult to progress until the current landscape improves and our investment programmes are completed Head of Economy and Development Head of Finance & Procurement Programme Director – City Deal & Infrastructure (1) Economic Recovery Plan (2) Capital investment such as investment in housing and heritage assets; supporting Scotland’s prospectus for international investment by identifying and developing opportunities such as AMIDS2 and supporting local businesses seeking to export to new markets (3) Taking forward measures to counter any education learning loss (4) Developing skills interventions to address the risks of unemployment, in particular those in low-paid employment, and parents. (5) Support for local businesses to bid for council contracts (6) Support for local businesses to become more carbon neutral 05 05 25 V.High The coronavirus pandemic has resulted in significant challenges for economies across the world. The UK and Scottish Governments invested billions to support businesses through lockdowns and furlough in order to keep businesses viable and retain people in employment. Renfrewshire’s economy has well established strengths in transport (including Glasgow Airport), retail (including Braehead), manufacturing (including significant international exports) and construction. All these sectors and their wider supply chains have been impacted by the lockdown restrictions which have reduced supply and led to subdued demand for products and services. The construction sector is currently experiencing significant volatility in terms of labour, supply chains, prices, and construction inflation. This makes “building our way out of Covid” less attractive, coupled with a connected surge in construction claims and disputes. Action Codes Actions Assigned To Date Status CESIP22.01.02 Maximise funding for regeneration of Renfrewshire’s places through grant submissions to external sources including UK and Scottish Governments. The Regeneration and Place Team have successfully been able to secure and receive funding through various external sources. Between 21/22 and 25/26 we have been allocated £4.4m from the Place Based Investment Fund for capital regeneration projects. Between 22/23 and 24/25 we have received £1.5m in funding for capital and revenue regeneration spend from the Shared Prosperity fund. Head of Economy and Development 31-Mar- 2023 2 Advanced Manufacturing Innovation District
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5 | P a g e Have consistently been successful in RCGF funding applications. Most recent successful application received £800k in funding for the PACE theatre project. Have recently secured £35k funding from Visit Scotland to develop a strategic Tourism Infrastructure Development Plan for Clyde Muirshiel Regional Park. Recently the team submitted applications to NLHF and HES in respect of a potential new heritage scheme in Johnstone and Kilbarchan. CESDP21 - 01 - 27 Monitor benefits of City Deal Projects, including AMIDS, Clyde Waterfront and Renfrew Riverside and City Region wide employment programmes. Community Benefits: 110 of 150 community benefits have been delivered to date. The remainder are on track/have been re-baselined to be completed as part of the project lifespan. Project Benefits: Project is developing at pace with all expected benefits in terms of infrastructure, economy and wider regeneration on track. Glasgow Airport Investment Area (GAIA) Community Benefits: 70 out of 70 community benefits have been delivered. Project Benefits: Enabling infrastructure benefits of the GAIA project is now complete. The infrastructure in place has allowed the progression of the AMIDS site to take place with key link road throughout and new connecting bridges opened. Programme Director - City Deal and Infrastructure 31-Mar- 2023 CESDP21 - 01 - 13 Deliver on the ambitions of our town centre strategies and specifically working with partners to transform Paisley Town Centre through the Paisley Town Centre Action Plan 2016-2026. The transformation of Paisley on the back of the Action Plan has begun. Goals such creating an international culture and heritage destination and acting as a stimulus for property investment, development and re-use has already been realised. There are a number of significant regeneration projects currently under construction including the restoration of the Museum, Town Hall and Arts Centre and the creation of a new Culture and Learning Hub in the High Street. The recent publication of the Paisley Vision document will also act as a further catalyst to inspire future development in and around the town centre. The team are now looking at delivering refreshed strategies for other major settlements in Renfrewshire. The first will be in Johnstone, with further updates for Erskine, Linwood and Renfrew in the pipeline. Chief Economic and Regeneration Manager 31-Mar- 2023 CESDP21 - 01 - 26 Work with partners to deliver the Advanced Manufacturing Innovation District – Scotland (AMIDS) First two centres of employment are significantly progressed with occupation of the 1st now completed in Q4 2022 and the other due in Q1 2023. Procurement of a joint venture partner for the remaining AMIDS site is nearing completion, with agreement anticipated May 2023. A strategic Group has been established with key stakeholders informing progression of development. Key enabling infrastructure is now complete together with new public realm space. Programme Director, City Deal and Infrastructure 31-Mar- 2023 CESIP20 - 01 - 07 Participate fully in all aspects of the new National Manufacturing Institute Scotland (NMIS) Governance arrangements and Medicine Manufacturing Innovation Centre (MMIC) delivery. RC have strong links with NMIS and MMIC as they are represented on the NMIS One Scotland Collaboration Group and chair the AMIDS Strategic Advisory Group with both organisations represented. CD&I team members work closely with both organisations Programme Director, City Deal and Infrastructure 31-Mar- 2023
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6 | P a g e daily and continue to assist with the commissioning of their buildings. MMIC building is already operational with NMIS expected to open in early 2023. Work has progressed with the Strategic Advisory Group to ensure partnerships are in place and a collaborative approach is allowing NMIS and MMIC to lead on engaging with sector specific organisation to hopefully progress to further occupation at the AMIDS site. A meeting is scheduled at the NMIS building in March to plan through full governance and programme management structures for how all parties engage with each other. CESIP22.02.01 Progressing the AMIDS South project to maintain the programme requirements of the UK Government Levelling Up Fund award. Planning consent obtained (Jan 2023). Liaison with stakeholders and continuing development of detailed designs ongoing in advance of construction tender issue during 2023. Dialogue with UK Government agencies continuing on all aspects including delivery programme. Programme Director, City Deal and Infrastructure 31-Mar- 2023
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7 | P a g e • PLACE - working together to enhance wellbeing across communities • FAIR - nurturing bright, happy and healthy futures for all Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation SRR.23.02.02 Reducing inequalities in Renfrewshire If we don’t have a coordinated approach to tackling inequalities across Renfrewshire (including for example, the causes and consequences of poverty), this could jeopardise the effort in reducing both the short-term impacts on households but also have wider long-term consequences on attainment and health for people living on low incomes. Head of Policy & Partnerships (1) Fairer Renfrewshire Programme (2) Attainment Challenge (3) Strong partnership working (e.g. Community Planning Partnership (CPP). Advice Partnership, Empowering Communities Forum, Improving Life Chances, CPP Board (4) CPP have identified priorities e.g. Alcohol and Drugs, Social isolation etc. (5) Social Renewal Plan has been developed through a programme of analysis, research, and engagement. (6) Neighbourhood hub model in place to support local needs on a partnership basis in response to COVID 05 05 25 V.High The Council plays a key role in tackling inequalities and providing the best possible services to our communities, particularly those who are experiencing the poorest outcomes. As well as our focus on health and wellbeing, we are also committed to support vulnerable individuals, groups or communities through early intervention and prevention, responding to poverty, supporting routes to employment as well as dealing with welfare reforms. The impact of COVID-19 is likely to have exacerbated existing inequalities in terms of for example educational attainment, health, poverty and mental health. There will be a significant focus on ensuring that people receive the economic and wellbeing support that is needed, with a real opportunity to work in a different way, and to tackle some of the existing inequalities across communities as we do this. The current cost of living crisis impacts disproportionately on particular groups in society. In the short term, significant focus is on supporting food insecurity and supporting people on low incomes to maximise income and seek advice with income and debt management. Action Codes Actions Assigned To Date Status CESIP22.03.01 Develop the new Fairer Renfrewshire programme. The Fairer Renfrewshire Sub-Committee has been meeting since August 22 and a Fairer Renfrewshire Officers Group made up of officers from across services is meeting monthly. Work with partners to develop the Fairer Renfrewshire Programme is ongoing. There are four key emerging themes which are shared across all elements of the programme, and these are: •Improving financial security •Advancing equality of opportunity •Building community capacity and resilience •Listening to lived experience Funding has been allocated from the Fairer Renfrewshire budget to a number of projects to support residents with immediate Cost of Living increases. These include supports around food, fuel and advice. Work is also ongoing around digital access and supporting residents to get online through the Citizen Voice group, with a new post of Digital Champion in libraries has been recruited. Strategic Partnerships & Inequalities Manager 31-Mar- 2025
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8 | P a g e Our Winter Connections programme was set up to support residents over the Winter 22/23 period, and has provided grants to a number of organisations to run activities. The development of a panel of people with lived experience of poverty to inform the Council’s policy and practice is ongoing. A diverse panel has been recruited and have met formally six times, with test of change being evaluated by Poverty Alliance. In addition, officers are undertaking a ‘deep dive’ child poverty data exercise, to support the Local Child Poverty Action Plan as well as the wider Fairer Renfrewshire programme CESIP22.03.02 Develop and implement the action plan for the Trauma-Informed and Responsive Renfrewshire Programme. A coordinator post has been created to lead this programme of work going forward, with the coordinator starting in late October 2022. Further engagement with the Improvement Service and other local authorities has taken place through national networks for trauma champions and trauma leads, and the steering group reconvened in March 2023 to further explore the draft plan for the Programme. Leadership training for the Corporate Management Team was also undertaken in March 2023. Head of Policy & Partnerships 31-Mar- 2024 CESIP22.03.03 Deliver the Stigma/Language Matters project. The work of the Alcohol and Drugs Commission identified the need for partners to act robustly to eradicate stigma and promote positive conversations around recovery. Although the initial focus for this initiative was focused on alcohol and drug stigma, there is the opportunity to widen its scope to include other existing and emerging priorities, such as The Promise, Tackling Poverty, Trauma Informed and Responsive Renfrewshire and Our Values for example. High level themes and initial actions have been identified, including supporting staff to understand the power of language, be confident in their use of language, and to challenge stigma by speaking up when people make negative or wrong comments; and supporting national campaigns to help people in Renfrewshire understand the power and impact of language. A review of the resources required to deliver this project is currently underway. Head of Policy & Partnerships 31-Mar 2024 CESIP22.03.06 Develop and implement targeted interventions to supporting communities through the cost-of-living crisis, with a particular focus on food and fuel insecurity The Community Food Fund has supported community food provision across Renfrewshire. Three allocations of funding have been made to the Fuel Insecurity Pilot which continues to support fuel vouchers augmented with energy advice and the increase in payment amount and continuation of the Financial Insecurity Winter Payment supports households who are struggling to purchase essentials like food and fuel. In addition the Tackling Poverty programme continues to support an Energy Adviser in the Energy Management Unit. Strategic Partnerships & Inequalities Manager 31-Mar- 2023 CESIP22.03.09 Carry out an evaluation of the Tackling Poverty programme and develop a transition plan for mainstreaming this work. Work commenced in Q2 and initial projects identified for evaluation. This work is ongoing with Programme Management Unit support. Strategic Partnerships & Inequalities Manager 30-Sep- 2023
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9 | P a g e • GREEN – leading Renfrewshire to Net Zero Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation SRR.23.03.03 Climate, Sustainability & Adaptability The climate emergency brings a risk to Council and its communities in relation to increased extreme weather as well as food insecurity. We need to focus on mitigation and adaptation and ensure a just transition so no one is left behind and none is disadvantaged in the transition to net zero. The Council would need to take action and support those most disadvantaged. A key risk is that the Council is not in control of all of the levers, and cannot deliver everything required in isolation, so there is a risk that others do not contribute towards the 2030 target. Head of Policy & Partnerships Head of Climate, Public Protection and Roads Climate Change Working Group (1) The Council has used the Climate Change Assessment Tool – helps public sector organisations in Scotland self-evaluate their performance under the public sector duties of the Climate Change (Scotland) Act 2009 (2) Renfrewshire’s Plan for Net Zero has specific objectives to reduce emissions, and these are included in other key documents such as the Council Plan (3) Implementation of the Corporate Asset Management Strategy ensures that property assets are managed effectively and efficiently through the provision of relevant management and performance information (4) The Energy Management Team: ensure energy management initiatives are aligned to the capital investment programme and corporate asset strategy to optimise use of property estate and reduce overall running costs and energy consumption levels. Promote reductions in energy usage and advise employees and residents about energy efficiency (5) Through the Procurement Unit, sustainability and community benefits are considered in the development of all contract strategies (6) Governance through the Planning & Climate Change Policy Board (7) Launch of the Climate change action fund – to support a range of initiatives/feasibility to test new ways of working and to be ready to lever external funding (8) Climate Panel / Partnership Forum to support engagement and ensure all voices are heard, including traditionally underrepresented groups (9) Community Climate Fund – fund for community organisations to enable behaviour change and local green projects to make our communities more resilient 04 04 16 High Renfrewshire Council declared a Climate Emergency on 27 June 2019 and established a Climate Change Sub-Committee, now the Planning and Climate Change Policy Board to lead on this work. The actions required are potentially complex and multi-faceted and need to be supported by organisations across all sectors, and in partnership with local communities. Actions include: pledging to work proactively with others towards a net zero Renfrewshire by 2030, taking into account both production and consumption emissions; and assisting communities to become more resilient to the impacts of global warming, particularly to flooding and to drought. Action Codes New Actions Assigned To Date Status CESIP22.04.01 Complete the District Heating Network at AMIDS, with supplies to NMIS and MMIC. The district heating network is now complete and operational. Programme Director, City Deal and Infrastructure 31-Mar- 23 CESIP22.04.02 Develop the first stage of Renfrewshire’s Plan for Net Zero The Plan for Net Zero was developed in partnership with other services, stakeholders and our citizens through Renfrewshire’s Climate Panel. The Plan was approved by the Planning and Climate Change Policy Board on 23rd August. Strategy, Policy & Insight Manager 31-Dec- 22 Forward action linked to Net Zero plan: Climate change action to make Renfrewshire net zero - Renfrewshire Website
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10 | P a g e Appendix 2: Corporate Risks, longer-term or imminent • LIVING our VALUES – making a difference together Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR23.04.04 Financial Sustainability If significant cost pressures are not successfully planned for and managed effectively over the medium to longer term, this could jeopardise the financial sustainability of the council and result in a significant impact on availability and quality of front-line services and capital investment resources. Decisions will then be required on the continuity or scope of some services currently offered. Head of Finance & Procurement (1) Revised medium- to long-term Financial Outlook reassessed the various risks to the Council’s short, medium- and longer-term financial sustainability. Refreshed report to Council on 2 March 2023 outlined the immediate financial concerns and plans to address these, including R4R savings (see 3 below), financial sustainability workstreams, and utilising flexibilities agreed by the Scottish Government; however, as the position continues to develop and evolve, close monitoring will be required to ensure that the Council manages costs in the short term and fully appreciates the longer term consequences of actions taken to address short-term risks. Committee reports of this nature cover a wide range of current and future financial and economic factors e.g., Strategic Economic and National Policy Context, Cost Pressures, Pressures on Income and Mitigation Strategies to deal with such uncertainties. (2) A well-developed and embedded budget planning, budget setting and budgetary control system is in place throughout the organisation, and this informs members and officers regarding financial performance and stability. This facilitates robust and transparent decision making and incorporates an escalation process with regards budget management issues which may arise. (3) In conjunction with the medium to longer term financial outlook and the Council’s continued “Right for Renfrewshire (R4R) Programme”, Renfrewshire Council has been pro-active in planning for the future by identifying and agreeing a planned release of resources. This is required to meet emerging budget pressures and has been run in conjunction with the Council’s long-term debt smoothing strategy to support the release of planned savings over a number of years; however, the pandemic interrupted the planned delivery of savings under RFR, so the full programme has been reviewed. It remains the case that savings will continue to require be generated at scale in order to ensure the ongoing financial sustainability of the Council. 05 05 25 V.High Financial recovery from global events - Rebuilding of financial resilience following unprecedented costs and loss of income incurred in responding to the COVID-19 pandemic - Anticipated reduced income from NDR/CT over the medium term as full economic implications of the pandemic and cost-of-living crisis hit local businesses and communities - Pricing volatility and global supply issues leading to shortage of labour and materials following Brexit and the outbreak of the Ukraine war Best value report - Recommendation in Best Value report to prioritise how services need to be provided in future to be funded from within available resources. Cost and Income pressures - Future grant settlements and the level of funding available. - Implications of national economic policy choices to protect certain services from real-terms reductions in funding such as the Police and NHS - Future Local Government pay settlements, and non-payroll inflation - Demographics and demand pressures, such as an ageing population with increased associated
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11 | P a g e service demands, and increases in demand for children’s social care - Implications of welfare reform and poverty levels, exacerbated by cost- of-living crisis. - Reductions in income from fee- generating services such as car parking; implications of the national economic recovery and associated risks/uncertainty in economic factors e.g., interest rates and inflation. - Implications of third party provider financial stability, such as childcare providers in current economic climate - Liability for predecessor organisations, in light of the removal of the limitation period for historic child abuse claims (4) The Council approved a number of Financial Sustainability Workstreams in June 2022. These are led by Directors and look to progress recurring revenue savings. (5) There is close financial monitoring of the agreed savings to ensure that they are delivered within the agreed timescales or where this is not possible, to understand and reschedule planned delivery to achieve the associated objectives. Monitoring is undertaken via a combination of financial and operational measures, actions and related update reports. (6) Regular updates and bespoke reports are provided to CMT and the Council with regards the national fiscal position, likely developments and the impact on the council through close liaison with national groups e.g., CIPFA DoFs, COSLA and the Scottish Government. This liaison remains critical in ensuring the Council is aware of potential financial developments and is in a position to influence these. (7) Levels of and use of reserves has been a key tool in addressing the costs of the pandemic, therefore the planned use of and rebuilding of reserves in the medium term, and the Council’s Capital Investment and Treasury Management Strategy, are key to ensuring ongoing financial sustainability. Other controls (8) Reports and publications from Audit Scotland in relation to the Local Government financial outlook, financial planning and related developments and improvements are supplemented with a Renfrewshire context report, with both reports being submitted to the Council's Audit Risk and Scrutiny Board. (9) Utilisation and energy consumption has clarified priority areas for investment in the Council’s estate and this has supported and informed investment decisions and the formulation of the Council’s Capital and Revenue budgets. Action Codes Linked Actions Latest Note Assigned To Due Date Status CRR22.05.05a Strategic Property Review and new ways of working / Review of local policy positions Work on all of the financial sustainability workstreams is being progressed with updates regularly to Council. Agreed budget changes will then be incorporated into the General Fund base budget in Director of Environment, Housing and Infrastructure 30-Sep-2023 CRR22.05.05b Charging, fees and commercialisation / review of Council risk Director of Finance and Resources 30-Sep-2023 CRR22.05.05c Strategic review of procurement Chief Executive (Head of Policy and Partnerships) 30-Sep-2023
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12 | P a g e CRR22.05.05d Connected Communities / Review of Management grades and structures future years to capture the recurring savings. Due dates amended to 30 Sep 2023. Chief Executive (Head of Policy and Partnerships) 30-Sep-2023 CRR22.05.05e Digital Strategy Director of Finance and Resources 30-Sep-2023 CRR22.05.05f Council Tax and Tax Policy Director of Finance and Resources 30-Sep-2023 Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR23.04.05 Financial Stability If significant short-term costs and income losses are not closely monitored and understood, this could destabilise the finances of the Council to an extent beyond the financial resilience of the Council, resulting in a need for immediate cost control measures, or short-term savings which have an immediate impact on service delivery. Head of Finance and Procurement (1) Revenue budget monitoring reports to Policy Boards focus on the forecast year-end outturn position rather than the historic periodic position, so that significant variances are reported early, and any mitigating steps can be taken. This is already highlighting severe price pressures (such as energy costs) across different services. The impact of pay inflation is also highlighted through this reporting mechanism. (2) Review of all Right for Renfrewshire programmes has been undertaken in order to recalculate potential cost savings in-year and to reprofile agreed savings, the delivery of which was interrupted by the pandemic (3) Review of Financial Sustainability workstreams following approval of the 2023/24 Revenue Budget to ensure targets remain achievable (4) Clear analysis of the Council’s reserves position and potential for reprioritisation or redirection; including the development of plans to rebuild financial resilience of the Council in the medium term (5) Ongoing discussion with directors to understand the financial consequences of the current economic climate for each service and how these will be managed; (6) Review of capital plan and ongoing projects to ensure clear understanding of phasing of potential spend. 05 05 25 V.High Context: Imminent shorter- term risk for financial stability, recognising the immediate financial situation of the Council (note: the medium to longer- term financial position is captured under financial ‘sustainability’) Action Codes Linked Actions Latest Note Assigned Due Date Status CRR22.05.07a Investigate potential of Service Concession Flexibility allowed by Scottish Government This exercise has now been completed and approved by Council through the Revenue Estimates 2023/24 where annual recurring savings of £1.4m were identified. Head of Finance and Procurement 31-Oct- 2022 CRR22.05.07b Report to Council the financial impact of utilising the service concession flexibility Complete – reported to Council in Financial Outlook in December 2022 and Revenue Estimates report in March 2023 Director of Finance and Resources 31-Dec- 2022
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13 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR23.04.06 Cyber Attack While the council’s cyber protections are robust, cyber- attacks are becoming more and more frequent and sophisticated, and the council could be subject to an attack such as that on SEPA, with the risk of significant impact on council service provision. CMT For security reasons, controls are not published in the public domain Note, this risk has been subject to a deep dive exercise in March 2023. Recommendations are with the CMT for approval. 04 04 16 High Context: ▪ Review of the council’s cyber environment ▪ Ever increasing criminal cyber activity ▪ Increasing reliance on electronic systems Action Codes Linked Actions Latest Note Assigned To Due Date Status As agreed by the Corporate Management Team Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR23.04.07 Impact on Regulatory Services due to Covid- 19 and EU withdrawal. There is a risk, due to the shifting legislative landscape and rapidly increasing demands on Regulatory staff arising from COVID-19 and the EU Exit on 1 January 2021 that statutory duties may not be able to be fully met. Regulatory Services continue to function within a post-pandemic recovery phase. Head of Climate, Public Protection & Roads (1) Bedding in the new “grow your own” structure, to ensure a strong and resilient workforce moving forward. This will also support the retention of skilled and qualified employees within the service. (2) Working with REHIS, Society of Chief Environmental Health Officers for Scotland and University West of Scotland, Renfrewshire Council been mentoring a student from September 2021 as part of the first cohort of new trainees under a new Environmental Health course. This will lead to a larger number of EHOs to come through and replace an ageing workforce. (3) Three Fair Trading & Licensing Officers are passed Stage 1 of the Trading Standards qualification process and are undergoing Stage 2. This is a long process, which takes a significant amount of staff resource to support but can be undertaken in small, incremental stages, to ensure service delivery as a priority. (4) Wider staff being trained in functions to release EHO/TSO to focus on EU withdrawal work at Glasgow Airport. (5) Discussions with Glasgow Airport to understand impacts of changes at Glasgow Airport from EU withdrawal. (6) Discussions with DEFRA & Food Standards Scotland on Import/Exports duties (7) Regular meetings with other appropriate bodies to understand landscape for EU withdrawal and impacts on Renfrewshire. 03 05 15 High Context: Increased demands have been placed on Regulatory Services (Environmental Health and Trading Standards) due recovery post- pandemic and EU withdrawal. Resource and funding will be required to meet the current demands and ensure that statutory duties are not impacted. Action Codes Linked Actions Latest Note Assigned To Due Date Status Ongoing monitoring
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14 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR23.04.08 Commercial vehicle and operator licence compliance Renfrewshire Council requires its fleet of vehicles to be effectively managed, otherwise there could be sustained impact in several areas including community care, housing maintenance and repairs, streetscene operations and waste collection. Head of Operations and Service Development Governance (1) Training and Compliance Officer in post monitoring compliance performance and linking to inspection activity (2) Monitoring and tracking of vehicle servicing (3) Tachograph analysis system ensuring monitoring and compliance of driving staff (4) Operator Licencing Awareness Training (OLAT) conducted for all operational service managers (5) Full compliance audit report focusing on Operator Licence and Compliance completed in 2019 by Freight Transport Association (FTA) (6) Regular monitoring of Driver and Vehicle Standards Agency (DVSA) updates and controls (7) Quarterly attendance at Logistics UK (formerly FTA) and APSE Transport boards Operational (8) Reduction in average age of Council Fleet (9) Workshop equipment and tooling improvements 03 05 15 High Context: The council’s vehicle fleet, managed by Environment & Infrastructure Services, comprises around 500 vehicles including heavy and large goods vehicles, light vans and cars. The council implements a range of measures to ensure ongoing vehicle operator licence compliance. Action Codes Linked Actions Latest Note Assigned To Date Status (Presently monitoring compliance until such times as the risk can be reduced. We are currently recruiting for two compliance posts within the service)
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15 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR23.04.09 Asset Management Effective governance and management of the council’s property assets is essential, otherwise there is a significant risk of harm, financial loss, service disruption, non-compliances, fines, rising energy costs and inability to recover losses via insurance proceeds Director of Environment, Housing & Infrastructure; Director of Finance & Resources; Head of Economy & Development Services Corporately: Key responsibilities with regards to the Estate span 2 specific service departments, but they come together through a CAMIS Development Group (Corporate Asset Management Information System) which is taking forward a workplan to more effectively consolidate and oversee asset management risk Heads of Service: Effective asset management in practice on the frontline is included within the new Risk Assurance model which went live on 1 April 2023. 03 05 15 High Context: GOVERNANCE – roles and responsibilities - Estates (Leases – by and from the council, and on behalf of HSCP) - Facilities management (security, housekeeping, statutory duties/ inspection, maintenance, repair, building fire risk assessment) - Property services (capital works, and CAMIS development) - All services (inspection inventories and response, people elements of fire risk assessment) Action Codes Linked Actions Latest Note Assigned To Due Status CRR22.05.10a New CAMIS Development Group to appoint Joint Chairs/ Heads of Service Head of Property Services and Head of Facilities Management Services have agreed to co-chair the group CAMIS Development Group 30-Sep- 2022 CRR22.05.10b Agree Terms of Reference for the CAMIS Development Group The Terms of Reference have been finalised. CAMIS Development Group 15-Nov- 2022 CRR22.05.10c Undertake gap analysis to ascertain if any responsibilities in terms of governance are missing or unclear Organisational changes agreed by Council have streamlined some governance arrangements – specifically that Property Services are now part of the Facilities & Property Services function in Environment, Housing & Infrastructure Services. There is less scope therefore for unclear responsibilities. CAMIS Development Group 19-Dec- 2022 CRR22.05.10f Develop a workplan for the group and prioritise areas of initial focus Leads for initial priority activities have been agreed and a workplan is progressing in line with the Group’s terms of reference. CAMIS Development Group 28-Feb- 2023 CRR22.05.10g Agree the workplan for 2023/24 Workplan and meeting schedules are in place, aligned to the Group’s terms of reference CAMIS Development Group 31-Mar- 2023 CRR22.05.10d Undertake gap analysis to identify activities that take place outside of the CAMIS environment and consider if these can be brought into CAMIS by way of system development Making good progress but more involved than initially thought. Issues include future reference/ amendment to Scheme of Delegated Functions: Delegations to Officers – Due date therefore amended to June 2023 CAMIS Development Group 30-Jun- 2023 CRR22.05.10e Explore data and status monitoring Making good progress but more involved than initially thought – Due date therefore amended to June 2023 CAMIS Development Group 30-Jun- 2023
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16 | P a g e Context Risk Statement Owned by Current Controls Likelihood Impact Evaluation CRR23.04.10 Tree Fall and Ash Die Back & Larch Infection Tree management in Renfrewshire has historically been based around risk-based response to any reporting of concerns, however with the emergence of Ash Die back in the UK there is now an increased potential for: - public injury and property damage; - awards against the Council; and, - reputational damage. - Statutory notices Head of Operations and Service Development Responses to customer / public complaints and enquiries Reactive surveys Visual inspections Statutory notices served – (Forestry Scotland) 05 03 15 High Context: The main trigger for this risk a significant outbreak of Ash Dieback in the UK which will results in a significant number of trees within Renfrewshire having to be felled Action Codes Linked Actions Latest Note Assigned To Date Status CRR22.05.11a Tree & woodland area formal inspections Officers are undertaking a table-top Google assessment of Ash dieback - this is still ongoing. Due date amended to 30 June 2023 Tree & Woodland Officer 30-June- 2023 CRR22.05.11b Produce, disseminate and promote a formalised Ash Dieback Action Plan Looking to adapt Tree Council for Scotland’s Ash Die back plan. This will follow on from the desktop survey. Due date amended to 31 Dec 2023 Tree & Woodland Officer 31-Dec- 2023 CRR22.05.11c Further identify areas of larch trees and schedule removal 2 Larch Infections fully dealt with felling circa 1300 trees. Legal notice received requiring a further felling of trees and due date amended accordingly to 31 August 2023. Tree & Woodland Officer 31-Aug- 2023 CRR22.05.11d Accurately record findings and seek funding for replanting projects Working with Clyde Climate Forrest and Trees for Cities. In terms of Larch Infections we have commenced some replating using resources available. Due date amended to 31 Dec 2023 Tree & Woodland Officer 31-Dec- 2023
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17 | P a g e Appendix 3: Significant Service Risks Nil return, HOWEVER: Following the recent organisation structural changes, Environment, Housing and Infrastructure Services will be fully reviewing their risk profile to determine if any new significant risks should be recorded in this section going forward.
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18 | P a g e Appendix 4: Business-as-Usual Risks The council has 12 areas of risk that it considers to be business-as-usual risk; those not generally related to corporate priorities or ambitions but rather they are inherent by nature of our type of organisation and services we deliver. The table below sets out what our business-as-usual risk areas are (in no specific order), and what they cover. BAU RISK AREA ENCOMPASSING BAU RISK AREA ENCOMPASSING 1. Community & public safety Child and adult protection Serious and organised crime (external) 2. Asset management Statutory compliance Arrangements for void properties Fleet and other infrastructure ICT hardware and software assets and responsibilities 3. People wellbeing & development Staff health and wellbeing Training and development Corporate and local induction 4. Information handling GDPR compliance Information asset management Information security Records management 5. Health, safety & managing adverse events Staff incident recording RIDDOR arrangements Incident monitoring and trends analysis 6. Programme and project management Governance Compliance with industry standards/ adopted methods 7. Organisation resilience Business continuity: - Staffing resource - ICT and/ or power outages - Facility issue - Cyber security 8. Partnership management Partnership registers Agreements Liabilities 9. Financial control and governance Authorities and delegation Budgeting and accounting Conflict and whistleblowing Insider threat and crime Counter fraud 10. Service performance monitoring Trends analysis Links to risk management and service improvement 11. Procurement and contract management Standing orders Roles and responsibilities Monitoring & Performance Mgt 12. Complaints, comments and claims handling Compliance Trends analysis Links to service improvement The new risk assurance model in place for the above risks has gone live on 1 April. With the new ICT solution developed in-house to track these risks, Audit and Risk officers can see on a monthly basis, how Heads of Service and direct reports to Directors are responding to the question sets for each area of risk. In November 2023, members will receive the mid-year report that will give a first insight to how the new model is working.