Agenda item - Strategic Risk Focus: SR15 Not keeping Children Safe; SR31 Greater liability on the council's budget due to budgetary pressures on schools; SR24 The impact of Welfare Reform increases need and demand for services; and SR29 Ineffective contract management leads to sub-optimal service outcome

Report of the Executive Lead Officer, Strategy, Governance & Law

1)           That the Audit & Standards Committee notes Appendix 1 for details of SR15; SR31; SR24; and SR29

2)           That, having considered Appendix 1 and any clarification and/or comments from the officers, the Committee makes any recommendations it considers appropriate to the relevant council body

3)           That the Committee note (as detailed in paragraph 3.3) the changes to the council’s SRR.

53.1      The Committee considered a report of the Executive Lead Officer, Strategy, Governance & Law that provided detail on the actions taken and future actions to manage each strategic risk.

53.2      Councillor Sykes noted that SR33 currently had the highest risk likelihood score and asked for further comment on the new risk.

53.3      The Risk Management Lead clarified that due to its status as a new risk, the risk likelihood score would be high until mitigating actions had been identified and undertaken.

53.4      Councillor Greenbaum asked for further clarification on the removal of SR17 from the Risk Register.

53.5      The Executive Director, Families, Children & Learning explained that there was recent agreement for the temporary expansion of Dorothy Stringer and Varndean schools that could later become a permanent expansion as well as expansion at Blatchington Mill and Patcham High School and the opening of a new site for Kings School. This, coupled with a reduction in the expected pupil number entering secondary school age in the city, meant that a new school was no longer required and that had been agreed with the Department for Education (DfE).

53.6      In relation to the change of risk title for SR30, Councillor Wealls commented that he believed it very important to continue to specifically refer to the city region and the significance of the inter-dependence of the regional economy. In relation to SR21: Unable to manage housing pressures and deliver new housing supply, Councillor Wealls noted that the shift in focus toward statutory responsibilities implied in the new title were of some concern given the context of the city’s housing crisis.

53.7      The Executive Director, Finance & Resources replied that the Chief Executive had attended the previous meeting of the committee and highlighted the importance of the Greater Brighton region however, the risk focus related to the direct influence the city could have. In relation to matter raised on SR21, the Executive Director, Finance & Resources confirmed that officers would review the risk and address any ambiguity.

53.8      Councillor Sykes stated his belief that the new title for SR21 better reflected the content and narrative of that specific risk and that the matters and contributory factors relating to the city’s housing crisis were broad and spread across many strategic risks.

53.9      The Chair asked if it was likely central government would request the return of the £15m funding awarded to Brighton & Hove following the decision not to open a new school.

53.10   The Executive Director, Families, Children & Learning clarified that the central government funding was for local provision of school places and whilst a new school had initially been identified for use of that funding, that focus had now changed toward the resource required for the expansion of schools and other school pressure points in the city.

53.11   In relation to the comments made on page 25 and page 47 of the agenda relating to school budgets, Councillor Allen asked for the current status of budgets and delegated financial powers.

53.12   The Executive Director, Families, Children & Learning clarified that delegated financial powers for schools still remained in place however, he and the Executive Director, Finance & Resources had written to each of the schools with a reminder of the need for sustainable strategies to be in place to balance budgets and the removal of delegated financial authority would be explored if the current situation did not improve.

53.13   Referring to page 21 of the agenda, the Chair asked if the number of Children in Care (CiC) and those on Child Protection Plans (CPP) remained significantly higher compared to similar authorities and sought assurance that action was being taken to address the number of children and young people being sexually exploited.

53.14   The Executive Director, Families, Children & Learning clarified that the number of CiC’s was now a statistical average compared to similar authorities for the first time in recent history. Although those on CPP’s had decreased, the number was still above the statistical average of similar authorities however, this did mean that the children were not in care and it was important to strike a balance between care and protection of children. The Executive Director, Families, Children & Learning provided assurance that there was an active programme underway examining the best approach and methods to tackle children and young people being sexually exploited.

53.15   In relation to SR24, Councillor Sykes noted that a detailed report had been produced two to three years ago subsequent to the completion of previous welfare reform. Councillor Sykes asked if a similar report would be produced detailing the impact of universal credit now the roll-out was complete.

53.16   The Executive Director, Finance & Resources replied that regular updates had been and would continue to be reported to the NICE Committee and this Committee.

53.17   Diane Bushell asked if any assessment had been undertaken on the impact of Universal Credit on the self-employed.

53.18   The Revenues & Benefits Manager replied that this was an issue his team were aware of and the treatment of income would be quite different and complex under Universal Credit. There had been no impact assessment undertaken to date but there were a significant number of self-employed people receiving housing benefit.

53.19   Referring to page 37 of the agenda, the Chair asked how performance of contract managers was monitored.

53.20   The Head of Procurement answered that there were in the region of 200 contract managers and contract management performance was inconsistent across that number however, increased resource had allowed for an expansion of the training delivered and greater capability for the corporate procurement team to challenge managers.

53.21   Councillor Robins observed that through his attendance of the Procurement Advisory Board, he had found that there were surprisingly few suppliers of the range of services the council procured.

53.22   RESOLVED-

1)           That the Audit & Standards Committee notes Appendix 1 for details of SR15; SR31; SR24; and SR29

2)           That, having considered Appendix 1 and any clarification and/or comments from the officers, the Committee makes any recommendations it considers appropriate to the relevant council body

3)           That the Committee note (as detailed in paragraph 3.3) the changes to the council’s SRR.