Agenda item

To consider the report of the Chief Executive & Growth Director.

The Audit Manager (HK) referred to the Audit and Governance Committee’s responsibility for monitoring and reviewing the Corporate Risk Register and in presenting an update advised that there was one new Risk Number 14 to the Corporate Risk Register since the last meeting. The detail of this risk had not been replicated in the version of the appendix circulated with the agenda. This had been rectified by later circulation.

The Audit Manager and Director Finance responded to Member’s questions in the following terms:-

·           Risk number 9 - a report with an update of the future of the Greater Exeter Strategic Plan, following the withdrawal of the East Devon District Council was being considered by the Executive on 1 December with a recommendation that the City Council will formally withdraw from the arrangement and in principle agreement was being sought for a non-statutory joint strategy and infrastructure arrangement;

·           Risk 1 - following the Council having taken this function back in house this risk would be updated to reflect this;

·           it had not been possible to obtain a response in respect of a question on Risk Item 2 about the Council’s role in engaging with other sectors in regard to the pandemic. A response would be circulated.

·           in respect of Risk Item 9 –It was noted that there was a High Court Judgement in 2015, in which the Council was told that purpose built student accommodation could not be counted towards meeting our adopted housing requirement/five year land supply. That is because the Council’s current adopted housing requirement does not take full account of the growth in student numbers that Exeter has seen in recent years. This will be the position until the Council adopts a new Local Plan for Exeter, containing a new housing requirement that does take account of the increased number of students in the city.  There is no definitive legal ruling of the counting or otherwise of co living housing towards the local planning authority housing requirements. It would seem reasonable to assume that co living housing can be counted towards the Council’s adopted housing requirement because, unlike student’s accommodation anyone can occupy a co living home.

·           in respect of Risk Item 11 – the Director Finance responded to a comment on the lack of a reference to potential capital receipts losses due to any decline in the value of our commercial estate. The Strategic Management Board will update the Register collectively, so that each entry can be challenged with each other to ensure that all entries are updated. He added that local authorities have a statutory override that offers as protection from any fluctuation of the market value of the Council’s commercial property to ensure there is no impact on the Council tax payer.

The Director Finance also referred to a question about other Councils’ investment portfolios and stated that such valuations were not an issue for Exeter’s council tax payers and referred to his previous response of the Council’s statutory override. He also responded to the Member who sought clarification about the Council’s liability for borrowing for investment. He confirmed that only two of 900 commercial properties had any borrowing attached to them. The income of £5million was set against an annual agreement to repay borrowing of between £200,000 and £300,000.

A Member also sought further information on Risk 14 relating to St Sidwell’s Point and the additional costs for the site. The Director Finance confirmed that the site would have to be Covid compliant with all that required, including additional PPE and fewer construction workers at any one time, which would impact on the schedule. He referred to his Section 151 comments in the relevant section of the report which referred to the financial challenges from the Covid 19 pandemic. There had been some respite from the Government’s Sales, Fees and Charges compensation scheme. He would report to Members the continuing risks of the Council’s income streams in his annual Budget Member Briefing in January.

The Audit and Governance Committee reviewed and noted the updated Corporate

Risk Register.

In accordance with Standing Order 43, two Members wished to abstain from noting the supporting document on the Audit Risk Assessment as they had not had sufficient time to receive all of the information.