To consider the performance in the second quarter of 2018/19 of the Council’s Service Indicators, Revenue Budget Monitoring, Capital Budget Monitoring, Risk Management and Internal Audit.
To consider any Advance Questions submitted.
The Committee received a report that detailed the major variances on performance in relation to the Council’s Key Performance Indicators, Risk Management and Internal Audit. One advance question had been received in relation to the report and this was tabled at the meeting.
The Committee considered and discussed the report. There were a number of a questions and comments on the report, relating to the following topics:
· Risk Criteria. It was requested that an explanation of the risk criteria against which the risks referenced in the performance report are evaluated be included in future quarterly performance reports.
· Seasonal variation in targets. It was suggested that where seasonal variation was expected in monitored performance areas, this be allowed for in the associated targets.
· Corporate Plan Delivery Fund. It was identified that the Corporate Plan Delivery Fund was not expected to receive additional funding in the current year, but that this would be considered in future years in line with the requirements of the Corporate Plan.
· Mitigating Actions. It was identified that the identified red risk relating to OR4, Ageing RBBC fleet, was being addressed by planned replacement of the fleet, as considered by the Executive at its meeting of 29 November 2018. It was identified that the identified red risk relating to SR7, Partner decisions, was reflective of potential reductions in funding from other organisations, particularly Surrey County Council, increasing demand on the Council, but that these had not materialised in the year to date, and that the risk was therefore diminishing for the current year.
· Property Development, SR4. It was confirmed that investments outside of the borough could be considered where appropriately justified with reference to the Council’s economic area.
· Disabled Facilities Grant. It was requested that additional details of the capital variance relating to the disabled facilities grant be provided, and it was confirmed that a written response with this information would be provided following the meeting.
· Place Delivery. It was confirmed that the Place Delivery revenue variance underspend had not adversely affected service delivery.
· Warwick Quadrant Hotel. It was identified that the total cost of Warwick Quadrant Hotel project was approximately £4.5m, and that additional detail would be provided in a written report following the meeting.
· Brexit risks. A query was raised regarding the identification and evaluation of risks relating to the Brexit process. It was identified that, in addition to the references to Brexit in the risks referenced in the report, there were considered to be potential risk implications relating to: a possible general election or referendum, recruitment, supply of goods and services, general economic context, increased service pressures, and income received. It was however identified that the Council was considered to be positioned to be able to manage these risks either within the year, or to address them within the budget process for future years, and that the Council was confident that service delivery would not be adversely impacted.
(i) The quarterly performance report be noted;
(ii) The comments of the Committee be noted;
(iii) That the following observations be made to the Executive:
a. That the Committee recommends that future quarterly performance reports include an explanation of the criteria against which risks are evaluated.
b. That the Council’s awareness of risks relating to Brexit, as identified above, be noted.