Agenda item

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

The Audit Manager (HK) presented the report and referred to the coordinating role in drawing the updated Corporate Risk Register together, to present to the Audit and Governance Committee. Following the quarterly review by the Strategic Management Board, (SMB) a proposed update on each risk was included in the appendix to the report.  A new risk relating to the Exeter Liveable Programme had been added.

A Member asked if more consistent language could be used throughout the Risk Register in relation to the references to carbon neutral and Net Zero, which were different. The Audit Manager had spoken to the relevant Director and he agreed that the consistent phrasing of Carbon Net Zero would be used in all such future communication.

In response to Members’ questions, the Audit Manager and Director Finance explained:-

• Risk 1 - the Member’s comment in relation to the header for the risk relating to St Sidwells Point (SSP) and the Bus & Coach Station would be passed to the relevant Director to ensure the information was updated.

• the financial benefits would be measurable once SSP was open and operating.
• the Risk Register was not an audit, although the Internal Audit Managers oversee the compilation of the Schedule, which feeds into the risk assessment, which underpins the Audit Plan.

• the Director Corporate Services stated that the contractor for SSP were paid when payments were required, with an assimilation of the accounts at the end of the contract when requested. The contractor would then identify any additional works requested by the Council and invoice accordingly.  Legal discussions had centred around Covid related delays.

• Risk 3 - Exeter City Futures are a Community Interest Company, and it was not unusual for companies of that nature, delivering a purpose, and relying on external funding rather than an emphasis on profit had weaker accounts. This is an organisation that has been built up with some of the largest public sector organisations in the city and it presented an opportunity to work together to deliver one of the Council’s highest objectives.

• Risk 4 - the Five year housing land supply position has improved from that set out in the ‘Existing Mitigations and Controls’ column of the Risk Register.  The Council‘s latest Five Year Housing Supply Statement (dated September 2021 and referred to in the ‘Notes’ column of the Risk Register) concludes that the Council is currently able to demonstrate a housing supply of five years and five months.  The Corporate Risk Register will be updated to reflect this position.  In order to help maintain this healthy supply, it is important that the mitigations and controls set out in the Risk Register continue to be pursued.  The Notes column highlights that developers are challenging the latest Five Year Supply position via appeals. 

• Risk 8 - the Corporate Risk Register highlights significant risks to Members, in terms of either financial loss or reputational damage. The Government have awarded funding via Exeter City Council to Exeter City Futures to develop an Exeter City Fund proposal. This is currently not identified as a corporate risk and the City Fund proposal would be reported to Executive, with a business case made.

The Director Finance presented the following comments from the Chief Executive & Growth Director which were reported to the meeting in response to a Member’s question on the transparency and accountability of the Exeter Liveable Place Board which was as follows:-

The Liveable Exeter Place Board was established in order to provide additional confidence on delivery of the programme, the Board does not replace the formal decision making processes. The Place Board sits outside the formal planning process.  The City Council is the planning authority and decisions are taken through the planning process in public. The Place Board allows candid conversations between the city’s institutions on matters associated with delivery of the programme. The key test for the programme is can it be delivered, this relates to viability and a raft of issues because it is a brownfield regeneration programme with challenging abnormal and infrastructure costs. Having all the key institutions around a table to take collective responsibility for working with the Council to assist delivery of the Council’s housing programme, is a major advantage in convincing a local plan inspector, that the city’s organisations are working together on meaningful action to co-ordinate their investment plans to support the delivery of the overall programme. Open and frank conversations between the leaders of these organisations is important to help address barriers to delivery. The Board does not bind individual organisations, it is a Steering Board and not a decision making Board. In providing infrastructure in a timely fashion asset plans for infrastructure providers will need to be informed by regular dialogue and engendering confidence in our partners will be important. Having a Board that brings key organisations together is valuable, likewise having the most senior people around the table is a big advantage. An understanding of what it takes to get these leaders in the room and for them to spend significant time invested in the wider city agenda has shaped the way the Board has been put together.

The Director Finance made further clarifications on the following matters raised by a Member:-

·         in respect of the proposed Exeter City Fund, it would be work that was being funded by Central Government to develop a concept of working together with others to develop housing at scale on Exeter’s brownfield sites. There might be ambition to do work around some Council owned sites, but there was no commitment that this would be delivered through this proposed development fund and would require Council approval in any case.

• in response to the due diligence of Exeter City Futures and the possibility that the City Council could continue to be liable for any further losses, it was important to remember that Exeter City Council was one of seven constituent members and any support would be shared. The Director Corporate Services would discuss the Articles of the company with the Director of Finance.

• the Council’s commitment to deliver Net Zero for the city by 2030 was at the core of every activity. The risk was about a whole commitment, and there was little benefit in dividing its delivery. It was important to wait until the Net Zero team were able to report back with an assessment of what and when we can deliver in our own areas of responsibility. The discussion at the recent Executive reiterated the significant challenges of delivering such a programme.

The Audit and Governance Committee reviewed and noted the updated Corporate

Risk Register.