Decision details

The Equalities and Risk Manager, Angela Farmer, presented the report, highlighting: that the report reflected on the current position of Somerset Council in its approach to risk management and referenced the current suite of strategic risks as of May 2024; that in order to facilitate closer alignment between risk and performance, the risk management service had moved to the Strategy, Performance and Workforce Directorate; that a new system (Ideagen) to be used for the management of both performance and risk at Somerset Council and the phased transition from JCAD to Ideagen;  the review and identified changes of the committee report template submitted to Democratic Services for consideration; provided a snapshot of the risk reporting across a  number of committees; the revised Risk Scoring Matrix, with a further review early 2025.

The Audit Committee asked a number of questions and made a number of comments which were responded to at the meeting, as follows:

• Local Government borrowing and the approach to finance debt, including the inherited position of Somerset Council, change in Government policy, the impact of external factors such as inflation, and the capitalisation directive.
• The welcome comprehensive risk report and thanked officers for their work to improve risk reporting and consistency of presentation - The Equalities and Risk Manager to update risk scores for ORG0066, ORG0068 & ORG0070.
• The limited information of the Ideagen system, and the omission of why the transition from JCAD to Ideagen, and what it will deliver.

• The current downgrading of the risk for ORG0070 Budget overspend from critical to major, including the significant budget overspends in current financial year 2023/24, use of reserves, delivery of the financial plan, the dynamics of the risk and impacts of both internal and external factors on the budget.
• ORG0064 General housing – failure to maintain delivery of affordable housing through third parties (registered providers) and direct Council delivery, including phosphates position and commercial property sales to fund debt.

• Revised Strategic Risk review plan for consideration September 2024 - The Clerk, Audit Committee undertook to add to the Audit Committee workplan for 2024/25.

The Audit Committee noted:? 

o   The use and approach to risk identification in committee reports, using those reports submitted in March as a snapshot month.?? 

o   The changes identified in the committee template.? 

o   The revised Risk Scoring Matrix.? 

o   The current strategic risks for Somerset Council set out in Appendix Two?of the report. 

o   The change from JCAD Core® Enterprise Risk Management. system to Ideagen Risk Management Solution.? 

o   The refresh of the Strategic Risk register that is underway.?