Issue - meetings

To provide an update on risk as at the end of June 2025 (report of the Assistant Director – Governance enclosed).

The Portfolio Holder for Corporate Governance, Communications and Environmental Services  provided an update on the Risk Register up to the end of June 2025. He noted that the registers had been considered by the Governance and Audit Committee in September and risks were managed in accordance with the Partnership Risk Management Framework by officers, in consultation with the relevant Portfolio Holders.

It was noted that staff retention remained a high-risk area and a request was made for a figure on the percentage turnover of staff. The Portfolio Holder for Corporate Governance, Communications and Environmental Services  advised that an HR report was produced quarterly, detailing percentage turnover, and it was confirmed that further clarification would be provided in relation to the figure requested.

Another high-risk area identified was waste collection and round pressures. A question was asked as to whether this situation was expected to improve.

In response, it was explained that the current policies allowed unrestricted amounts of waste, making it difficult to predict volumes. Plans approved by Cabinet were scheduled for implementation within the next 12 to 18 months, which would address this risk. Associated policy changes were noted as progressing through a special Policy and Performance Committee.

A further query was raised for clarity regarding “capacity” as referenced in risk item 15.  It was confirmed that this referred to officer capacity to deliver work across three organisations and multiple high-profile programmes, including waste, housing revenue account, and other partnership initiatives. This issue had featured in both the Council’s and the partnership’s risk registers for some time. It was acknowledged that while senior officers had risen to the challenge, the demands continued to be monitored closely, as additional work pressures could make the situation more challenging.

DECISION:

That the Cabinet considers and notes the quarterly risk monitoring information for Q1 of 2025/26.

(Other Options Considered)

·           Alternative reporting arrangements.

Reasons for Decision:

·      The Cabinet is responsible for overseeing the Council’s risk management arrangement.

To provide an update on risk as at the end of June 2025 (report of the Assistant Director – Governance enclosed).

Consideration was given to the report of the Assistant Director – Governance which provided an update on risk management as at the end of June 2025. The report covered strategic risk information relating to SHDC, Partnership, Fraud, and SHDC’s Housing Revenue Account (HRA).

The Business Intelligence and Change Manager summarised the report and stated that:

• Following an internal audit review, key enhancements to the report included:
  • a clear indication of whether risks were at their target level; and
  • the tracking of mitigation actions using a RAG (Red-Amber-Green) status;
• Most strategic risks had remained stable, with several at target level;
• The Net Zero risk had reduced in likelihood due to the agreement of a target, completion of carbon foot printing exercises, and readiness of the carbon reduction action plan for consideration by the Policy Development Panel and Cabinet approval in Q3;
• The Health and Safety risk had increased in likelihood due to overdue audit actions. Clinics chaired by the Director of Communities were now in place to mitigate this, with a target resolution date of December 2025;
• Fraud risks were largely minimal or low, with a few medium risks  (procurement and NNDR fraud), but no changes were noted; and
• Within the HRA risks, the failure to self-refer to the regulator had reduced from medium to low following the implementation of a new procedure.

Members considered the report and made the following comments:

• Members queried whether staff retention had worsened due to Local Government Reorganisation (LGR).
  • The Business Intelligence and Change Manager confirmed that exit interview data showed no indication of LGR-related departures. A refreshed Workforce Development Strategy was underway, with a target completion date of March 2026. The aim was to reduce the risk level through tailored mitigations.

• Members noted that the commentary on LGR and the relationship with PSPS (Risk 9, page 39) required revision.
  • The Business Intelligence and Change Manager acknowledged that some text had been misplaced and confirmed that the rating would be amended to reflect the owner’s view that the risk should be reduced to low.

• Members asked whether financial penalties could arise from missed waste collections under the Environment Act.
  • The Business Intelligence and Change Manager stated that this point would be investigated and reported back to the panel.

• Members requested a breakdown of the £1.1 million allocated to support extra costs.
  • The Business Intelligence and Change Manager confirmed the risk had reached its target score and would provide figures to clarify the distribution across the partnership.

• Members asked when the Health and Safety risk would be on track.
  • The Business Intelligence and Change Manager responded that clinics were in place to address outstanding audit actions, with a target date of December 2025. If actions were not completed by then, the risk score would increase. An update would be provided at the November meeting.

• A correction was noted on page 39 for Risk 08 where the year-end should read 2026.

AGREED

That the Quarter 1 Risk Report 2025/26 be noted.