Contact your Parish Council
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Audit, Governance & Standards Committee |
14th March 2022 |
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Risk Management Annual Report – 2021-22 |
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Final Decision-Maker |
Audit, Governance & Standards Committee |
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Lead Head of Service |
Mark Green – Director of Finance and Business Improvement |
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Lead Officer and Report Author |
Alison Blake – Interim Deputy Head of Audit |
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Classification |
Public |
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Wards affected |
All |
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Executive Summary
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The Audit, Governance & Standards Committee is required to provide oversight of the Council’s risk management arrangements and to seek assurances that the processes are working effectively. This report, which is presented annually, sets out the details of how the risk management processes have been working across the Council, and the work plan for the upcoming year.
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Purpose of Report
The purpose of this report is to provide assurance to Members on the Council’s risk management arrangements. As those charged with governance, the Committee must seek assurance over the effectiveness of the operation of the process as required through its Terms of Reference.
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This report makes the following recommendations to this Committee: |
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1. That the Risk Management Annual Report (Appendix 1) is discussed and noted. |
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Timetable |
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Meeting |
Date |
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Audit, Governance & Standards Committee |
14th March 2022 |
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Risk Management Annual Report – 2021-22 |
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1. CROSS-CUTTING ISSUES AND IMPLICATIONS
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Issue |
Implications |
Sign-off |
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Impact on Corporate Priorities |
We do not expect the recommendations will by themselves materially affect achievement of corporate priorities. However, risk management is a key component in the Council’s governance. Good governance underpins everything that the Council does. |
Alison Blake – Interim Deputy Head of Audit |
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Cross Cutting Objectives |
We do not expect the recommendations will by themselves materially affect achievement of corporate priorities. However, risk management is a key component in the Council’s governance. Good governance underpins everything that the Council does. |
Alison Blake – Interim Deputy Head of Audit |
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Risk Management |
Risk management is the focus of this paper. |
Alison Blake – Interim Deputy Head of Audit |
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Financial |
Risk management support is provided through the Mid Kent Audit partnership within existing budgets. This decision therefore has no direct financial implications.
In general, effective risk management contributes towards strong financial governance and controls in the Council. |
Section 151 Officer & Finance Team |
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Staffing |
There are no staffing implications to this decision. |
Alison Blake – Interim Deputy Head of Audit |
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Legal |
The Accounts and Audit Regulations 2015 require the Council to have a sound system of control which includes arrangements for the management of risk. This report is part of those arrangements and is designed to ensure that the appropriate controls are effective. |
Interim Deputy Head of Legal Partnership |
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Privacy and Data Protection |
This is a report in the public domain, and there are no associated privacy or data protection implications. |
Policy and Information Team |
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Equalities |
This report does not describe circumstances which require an Equality Impact Needs Assessment. |
Equalities & Communities Officer |
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Public Health
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While public health risks may be identified and reported through the risk management processes there are no public health implications for this report. |
Public Health Officer |
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Crime and Disorder |
While crime and disorder risks may be identified and reported through the risk management processes there are no crime and disorder implications for this report. |
Head of Service or Manager |
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Procurement |
While procurement risks may be identified and reported through the risk management processes there are no procurement implications for this report. |
Head of Service & Section 151 Officer |
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Biodiversity and Climate Change |
While biodiversity and climate change risks may be identified and reported through the risk management processes there are no biodiversity and climate change implications for this report. |
Biodiversity and Climate Change Officer |
2. INTRODUCTION AND BACKGROUND
2.1 Risk management is the process undertaken to identify, evaluate and manage risks. In early 2016 the Council implemented a risk management framework designed to improve the risk management process. This included reporting and monitoring mechanisms for key risk information to be communicated to Senior Officer and Member level. This framework was reviewed and updated in April 2019 to ensure that it remains fit for purpose and current.
2.2 The Audit, Governance & Standards Committee is required to provide oversight of the Council’s risk management arrangements and to seek assurances that the processes are working effectively. This report, which is presented annually, sets out the details of how the risk management processes are working across the Council.
3. AVAILABLE OPTIONS
3.1In order for any risk management process to be effective it is vital that risk information is reported, that risks are monitored and that action is taken to manage risks to an acceptable level. Reporting risks to Members is necessary to provide assurance that risks are being managed.
3.2An alternative option would be to not report or monitor risks, but this would counter the effectiveness of the process, and would go against the terms of reference for this Committee.
4. PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS
4.1 Effective risk management is a key component of sound governance. This Committee, as those charged with governance, must gain assurance that the Council is operating an effective risk management process, and that risks are being managed.
4.2 We therefore propose that the Committee discusses and notes the arrangements in place, providing any comments as required on the operation of the risk management process.
5. RISK
5.1 This report is presented for information only and in itself has no risk management implications. The work that it describes helps to contribute towards effective risk management.
6. CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK
6.1 The risk management framework was designed and updated through consultation with Corporate Leadership Team. All risk owners have been involved in the identification and assessment of the risks on the register.
7. NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION
7.1 Unless requested otherwise, we will continue to report annually on the Council’s Risk Management processes.
8. REPORT APPENDICES
The following documents are to be published with this report and form part of the report:
· Appendix 1: Annual Risk Management Report – 2021-22
9. BACKGROUND PAPERS
The risk management framework was reported to Policy and Resources Committee in April 2019 and is publicly available on the Council’s website.