APPENDIX I
Cobtree Manor Estate Risk Management Annual Review September 2015
Risk Management: Scenario
|
Risk No. |
Risk Type: |
Vulnerability: |
Risk: |
Consequences: |
|
1.
|
Strategic |
§ Ability to fulfill the objects of the Charity. |
§ Failure to fulfill objects. |
§ Intervention by the Charity Commission. § Forfeiture of lease to Cobtree Charity Trust Limited. |
|
2.
|
Governance |
§ Appropriateness of decisions. |
§ Conflict of interest with role of local authority. |
§ Intervention by the Charity Commission. § Forfeiture of lease to Cobtree Charity Trust Limited. |
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3.
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Operational |
§ Contractor(s) performance of services.
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§ Contractor defaults on the contract. § Inadequate staff resources. § Major breach of safety regulations/site not safe to allow public access. § Reduced income from golf course. § Reduced surplus at Kent Life. § Failure to re lease golf course and Kent Life at end of existing leases. |
§ Reduced visitor numbers. § Claims for compensation. § Long term damage to course or park. § Inability to maintain levels of service. § Difficulty in re-tendering site in its present state. § Significant income pressure on charity. § Requirement for charity to operate sites itself. § Reduced income threatening remainder of charity’s activities. § Potential for sites to become derelict. |
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4.
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Financial |
§ Level of financial resources to maintain services. |
§ Reduced income from investments. § Adequacy of monitoring procedures. § Inability to pay back reserves. § Reduced/insufficient income from café/car parking |
§ Reduced investment in buildings and infrastructure. § Reduced endowment fund. § Threat to staffing and ability to fund ongoing park management.
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5.
|
External |
§ Public perception of service provision. § Climatic conditions. |
§ Poor or inappropriate publicity. § Extreme conditions leading to loss of play. |
§ Reduced visitor numbers and revenue. § Increased vandalism and misuse of facilities. |
|
6.
|
Legal |
§ Compliance with requirements of the Charity Commission. § Compliance with requirements of the lease. |
§
Conflict of interest with role of local
authority. § Failure to comply with requirements of lease. |
§ Intervention by the Charity Commission. § Forfeiture of lease to Cobtree Charity Trust Limited. § Claims for compensation. |
Risk Management – Risk Profile Assessment
The risks have been mapped against a typical appetite for risk. The Assessment has been prepared in the context of the Charity’s key objectives; with the risks, at this stage, having not been mitigated.
The vertical axis shows the likelihood of an occurrence:
A = very high; B = high; C = Significant; D = low; E = very Low and F = almost impossible
The horizontal axis shows impact of an occurrence:
I = catastrophic; II = critical; III = marginal and IV = negligible
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L I K EL I H O O D |
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B |
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C |
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D |
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E |
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F |
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IV |
III |
II |
I |
IMPACT
Risk Management: Action Plan
|
Risk No. |
Description: Strategic |
Current Risk Score |
Target Risk Score |
|
1.
|
Failure to fulfill the objects of the Charity. |
E.I |
F.IV |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Requirement to consider objects when preparing reports for Committee.
|
§ Do not provide an audit trail. |
§ Specific reference to charitable objects in all reports. |
§
Cobtree Officer/ |
§ Reference included in all reports. |
§ Each meeting of the Committee. |
§ Committee meeting dates. |
|
Risk No. |
Description: Governance |
Current Risk Score |
Target Risk Score |
|
2.
|
Conflict of interest with the role of the local authority. |
D.II |
F.III |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
|
§ Specific Committee to consider Cobtree issues in detail.
|
§ Gives clear focus to Cobtree issues. |
§ Reinforce separation whenever possible. |
§
Cobtree Officer/ |
§ Separation acknowledged and reinforced. |
§ Annually. |
§ June/July. |
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§ Memorandum prepared and distributed to all Committee Members and Senior Officers.
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§
Reminds all Members and Officers to bear in
mind special circumstances applying to Cobtree. |
§ Reinforce separation whenever possible. |
§
Cobtree Officer/ |
§ Separation acknowledged and reinforced. |
§ Annually. |
§ June/July. |
Risk Management: Action Plan
|
Risk No. |
Description: Operational |
Current Risk Score |
Target Risk Score |
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3a.
|
Contractor defaults on the contract (Golf Course, Kent Life, Maidstone Borough Services) |
D.II |
E.III |
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Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Regular review meetings to develop partnership working and early identification of problems.
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§ Ensures sensitivity to, and understanding of, operating environment. § Ensure controls relate to all contracts. |
§ Continue with regular meetings. § Begin meetings with other contractors where necessary. § Identify appropriate action to be taken in the course of a contractor defaulting. § Ensure controls are adequate and instigate remedial action where insufficient. |
§
Contract monitoring Officer/ § Cobtree Officer and Parks and Leisure Manager to identify contractors or areas requiring additional monitoring and appropriate actions. |
§ Contractor performing to contract specification. Profitably. |
§ Quarterly. |
§ January, April, July and October. |
Risk Management: Action Plan
|
Risk No. |
Description: Operational |
Current Risk Score |
Target Risk Score |
|
3b
|
Inadequate staff resources provided by contractor/council. |
D.II |
E.III |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
|
§ Regular review meetings to develop positive working relationship and early identification of problems.
|
§ Ensures sensitivity to, and understanding of, operating environment. |
§ Continue with regular meetings. |
§
Contract Monitoring Officer/ § Cobtree Officer. |
§ Contractors staffing levels to required standard to meet customer expectations. § Ensuring management plan objectives are met. |
§ Quarterly. |
§ January, April, July and October. |
Risk Management: Action Plan
|
Risk No. |
Description: Operational |
Current Risk Score |
Target Risk Score |
|
3c.
|
Major breach in safety regulations or area not safe to allow public access. |
D.II |
F.II |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Regular meetings to monitor contractor performance.
|
§
Safety concerns discussed during partnership
meetings. |
§
Reinforce safety concerns at partnership
meetings. |
§
Contract Monitoring Officers/ Partnership
Board. |
§ No breaches in safety occur. |
§ Quarterly. |
§ January, April, July and October. |
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§ Individual risk assessments for all activities. |
§
Individual risk assessments for all
activities. |
§ Regular review of risk assessments. |
§ Contractor/ Cobtree Manager/Health and Safety Manager/Parks and Leisure Manager. |
§ Risks managed appropriately. |
§ Annually. |
§ March. |
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§ Visual inspection by contract operatives as they carry out their duties. § Written weekly and monthly inspection of play equipment § Annual external insurance inspection for play equipment
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§ Relies on contractor staff. § All equipment to meet BS standards and be independently inspected by Rospa inspector prior to use. |
§ Regular inspections by monitoring staff. § Operational concerns to be dealt with immediately by Parks Department § Incidents monitored and recorded. |
§ Cobtree Officer. |
§ No unsafe situations arise. |
§ Quarterly. |
§ January, April, July and October. |
Risk Management: Action Plan
|
Risk No. |
Description: Operational |
Current Risk Score |
Target Risk Score |
|
3d.
|
Contractor receiving reduced income from Golf Course, charity receiving less income following re-tender. |
D.II |
E.III |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Receive regular income reports from contractor. § Investigating re-tender using a leisure consultant to advise on suitable models.
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§ Relies on contractor information. §
Relies on advice from consultant. |
§ Regular income reports to meetings of the Partnership Board. § Ensure re-tender allows contractors to invest for the longer term and to have flexibility in the use of the site. § Ensure a strategy is set up for successful re-tender. |
§ Contract Monitoring Officer/ Partnership Board/Parks and Leisure Manager/Cobtree Officer. |
§ Income maintained at projected levels. § Ability to allow contractor to diversify and invest over the long term. § Importance of being able to be flexible with future offer. |
§ Quarterly.
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§ On-going. |
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Risk No. |
Description: Operational |
Current Risk Score |
Target Risk Score |
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3e.
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Contractor failing to sign golf course contract for current period until tender process is complete. |
AI |
BII |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Negotiations on going with Contractor.
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§
If a deal cannot be reached with the exiting
operator they may be forced to leave the site before a new tender is secured. |
§ Continue high level negotiation. § Ensure re-tender is prioritized. § Prepare plan to manage golf course in event of losing the contractor. |
§ Parks and Leisure Manager. § Head of Commercial and Economic Development § Cobtree Officer |
§ Income maintained at projected levels. § Golf course continuing to operate. |
§ Monthly. |
§ September 2015
|
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Risk No. |
Description: Operational |
Current Risk Score |
Target Risk Score |
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3f.
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Failure to gain an operator to run Kent Life following the end of the present agreement. |
DIII |
EIII |
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Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Current lease to November 2015.
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§
Re-tender process is underway a consultant has
been appointed and expressions of interest have been returned. |
§ Ensure re-tender is prioritized. . |
§ Parks and Leisure Services Manager. § Cobtree Officer. |
§ Re-tender in time for the end of existing lease. § Allowing sufficient flexibility in contract for fresh ideas to flourish and the site to continue to improve. |
§ Monthly. |
§ On-going. § Nov 2015 |
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Risk No. |
Description: Operational |
Current Risk Score |
Target Risk Score |
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3g.
|
Failure to successfully run visitor centre/café |
CIII |
EIII |
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Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ New Manager and Catering Supervisor and Assistant appointed, additional casual staff recruited. § Building completed and operational. |
§
Staffing resource is in place and building is
fit for purpose. |
§ Ensure adequate training of all new staff. § Set clear standards and goals from the beginning. § Ensure adequate financial control. § Set up suitable monitoring procedures. |
§ Cobtree Manager § Parks and Leisure Manager § Cobtree Officer |
§ Good customer service scores and mystery shop score achieved. § Facility is self funding and generates a surplus for reinvestment in the park § Green flag retained. |
§ Quarterly |
§ Cobtree Trust opening in October. § Quarterly finances and annual performance to be reported in July 2016 |
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Risk No. |
Description: Operational |
Current Risk Score |
Target Risk Score |
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3h.
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Poor operation of car parking charges leading to poor public perception and reduced visitor numbers |
DII |
EIV |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Marketing information gone out in the car park advising of charges coming. § Signage confirms income raised is reinvested in the park. § Car park to be operated by existing experienced MBC team. |
§ Ensure a clear communications plan is in place in advance of when charging is introduced.
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§ Ensure benefits for those paying for parking eg special offers. § Ensure improvements to the park as a result of income from car parking are well advertised. §
Ensure permits are easy to obtain. |
§ Cobtree Manager. § Cobtree Officer |
§ Benefits to visitors are clear. § Reduction in visitors is kept to a minimum. § Car park is well managed. § Complaints are minimized. § Visitor numbers are stabilized and back to current amount within 3 years. |
§ Quarterly. |
§ September 2015 § September 2016 § September 2017 § September 2018 |
Risk Management: Action Plan
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Risk No. |
Description: Financial |
Current Risk Score |
Target Risk Score |
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4a.
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Reduced income from investments. |
E.III |
F.IV |
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Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Investments with Chari-Fund.
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§ Low risk option. |
§ Monitor performance of Fund. |
§ Corporate Finance Officer. |
§ Good return on investments. |
§ Annually. |
§ March. |
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Risk No. |
Description: Financial |
Current Risk Score |
Target Risk Score |
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4b.
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Adequacy of monitoring procedures. |
C.II |
E.IV |
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Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Regular monitoring of service standards and audit of customer survey responses.
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§ Service standards maintained as per the contract. |
§ Balance monitoring effort to level of risk. |
§
Contract monitoring Officer/ |
§ Required customer satisfaction scores. |
§ Quarterly. |
§ On-going. |
Risk Management: Action Plan
|
Risk No. |
Description: Financial |
Current Risk Score |
Target Risk Score |
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4c.
|
Tenants defaulting on rental payments |
E.III |
F.IV |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
|
§ Legally binding lease agreement permitting legal action to be taken if arrears accrue.
|
§ Fully drafted lease |
§ Monitor rental income receipts. |
§ Corporate Finance and Property and procurement Officers. |
§ Rent paid up to date |
§ Quarterly. |
§ Jan 1st, April 1st, July 1st,October 1st |
|
Risk No. |
Description: Financial |
Current Risk Score |
Target Risk Score |
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4d.
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Receiving insufficient income from café/car parking to cover operational costs |
CII |
EII |
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Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Budget monitoring set up. § Cobtree Manager to oversee all financial operations in the park assisted by the Cobtree Accountant. § Visitor numbers monitored.
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§ Income/Expenditure is carefully monitored. § Manager and staff all experienced and qualified to give new venture best start possible. §
New facilities of a high standard |
§ Regular customer satisfaction surveys to be carried out. § Finance updates brought to each committee to include monitoring of new ventures. |
§ Cobtree Manager. § Cobtree Accountant. § Parks and Leisure Manager. § Cobtree Officer. |
§ Income builds gradually to a sustainable level that makes a significant positive impact of park running costs. § Good customer satisfaction scores. § After 2 years it should be clear if the venture is a success. |
§ Quarterly. |
§ 1st August 2015 § 1st August 2016 § 1st August 2017
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Risk Management: Action Plan
|
Risk No. |
Description: External |
Current Risk Score |
Target Risk Score |
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5a.
|
Poor or inappropriate publicity. |
D.III |
F.IV |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Newsletters are checked by the Cobtree Officer and the Communications team before going out. § Newspaper articles are monitored by the communications team.
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§ Publicity is managed where necessary. |
§ Regular reporting of any known incidents or unwanted activities. § All posters etc to use correct communications scheme. § Comms to advise on all public information including websites, social media, posters etc.
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§ Cobtree Officer. § Cobree Manager. |
§ No negative reports in the press or media. § Dealing with incidents as quickly as possible. |
§ When required. |
§ On-going. |
Risk Management: Action Plan
|
Risk No. |
Description: External |
Current Risk Score |
Target Risk Score |
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5b.
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Extreme climatic conditions. |
B.II |
D.III |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
|
§
Golf course closure procedure. |
§
Minimises unnecessary wear and tear of greens
and tees. |
§ On-going review in response to anticipated threat. |
§ Contractor/ Contract Monitoring Officer. |
§ Minimal impact on course playability. |
§ On-going. |
§ On-going. |
|
§ Enhanced maintenance operations.
|
§
Minimises unnecessary wear and tear of greens
and tees and park. |
§ On-going review in response to anticipated threat. |
§ Contractor/ Contract Monitoring Officer. |
§ Minimal impact on course playability and park usage. |
§ On-going. |
§ On-going. |
Risk Management: Action Plan
|
Risk No. |
Description: Legal |
Current Risk Score |
Target Risk Score |
|
6a.
|
Conflict of interest with role of local authority. |
C.II |
F.IV |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
|
§ Separate Committee to consider items in detail. |
§
Ensures a clear focus on Charity issues.
|
§
Need to reinforce to both Members and Officers
the clear distinction between local authority and Charity issues. |
§ Cobtree Officer/Senior Solicitor/ Committee Members. |
§ No blurring between the respective roles of the Council acting as local authority and as Charity. |
§ On-going. |
§ On-going. |
|
§ Appointment of Cobtree Officer.
§ Annual Report to Charity Commission.
§ External Auditors.
|
§ Provides clear separation of officer roles. § § Monitors each of these. |
§ Reinforce independency of Cobtree Officer role. |
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§ No concerns from Charity Commission or independent auditor.. |
§ Annually |
§ December (Annual Report). |
|
Risk No. |
Description: Legal |
Curre.nt Risk Score |
Target Risk Score |
|
6b.
|
Maidstone Borough Council acting as corporate Trustee of the charity fails to comply with the requirements of the lease. |
E.II |
F.IV |
|
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
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§ Lease requirements included as appropriate in reports. § Objects of the charity included in all reports. § Cobtree Officer regularly meets with the Cobtree Trust.
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§ Ensure estate is run in accordance with the charity’s aims. § Gives focus to management and property matters. |
§ Annual Reports are submitted to the Charity Commission. § Recommendation of auditors are followed. § Review of Asset Management Plan. |
§ Cobtree Officer § Cobtree Accountant § Parks and Leisure Manager § Property section. |
§ Compliance with requirements of lease. |
§ Annual. |
§ December § July. |