To receive presentations from Heads of Service on the key operational risks identified within the following service areas:
· Housing
· Business Transformation
Also, to receive any additional Officer and/or Lead Risk Member (Councillors Bennett and Smith) oral updates in relation to risk monitoring activity which has taken place since the last meeting of the Committee.
(Presentations and oral reports)
Minutes:
The Committee received two separate presentations from Heads of Service on the operational risks identified within the following service areas:
· Housing Services
· Business Transformation
Housing Services
The Committee was advised that risk management was a continuous and developing process within Housing Services and subject to on-going review. Twelve key operational risks had been identified as areas of current concern, though it was likely that these would change over time. Each of these risks were addressed to some extent in the performance measures for Housing Services and it was agreed that further information about these measures should be circulated for Members’ consideration.
i) Risk of failure to effectively manage and achieve efficiencies through Housing Services Transformation
Housing Services had been working in different ways for some time as a result of trialling transformed ways of working within the community. This trial was due to be extended across the Borough through the work of the Locality teams and would lead to a reduction in risks to the Council as well as efficiency savings. However, Officers were not complacent and risks would continue to be monitored at a corporate level.
Councillor Shurmer, in his capacity as Portfolio Holder for Housing, commended the work of the Housing Locality teams. He urged every Member to visit the teams and to shadow them at work when they had an opportunity to do so.
ii) Risk of failure to effectively manage Housing Repairs and Maintenance
At the start of the service transformation process the Council had employed two managers to manage the Housing Repairs and Housing Maintenance functions separately. Following staff turnover a single manager had been successfully recruited to this post, both securing efficiency savings and minimising the risks that a single manager might not be found who was capable of managing both functions. These services were in the process of being restructured subject to the outcomes of staff consultation.
iii) Risk of failure to manage the impact of welfare reform
A number of changes had already been made to the welfare system, including the introduction of the bedroom tax, and further developments were due to take place, such as the introduction of Universal Credit. This would have an impact on some residents living in the Borough, including Council tenants. The Housing Services team had been doing a lot of work to identify which customers would be affected by these changes and what help they required to remain in their homes. This had included working with tenants to help them manage their finances effectively.
iv) Risk of failure to manage the liability for Council tax on void properties
As of 1st April 2014 Councils were required to pay Council tax for void properties. In previous years there had been greater flexibility over these payments as properties could be left void for up to six months without payments needing to be made. There was the potential for this change to payment rules to have a significant impact on the Council’s finances. For this reason Officers had been attempting to re-let void properties more quickly and in a better condition than previously.
v) Risk of failure to manage the impact of increasing homelessness cases
There had been an increase in homelessness cases within the Borough in recent months. In part this was due to the fact that private landlords were increasingly reluctant to accept tenants who were on benefits. Officers were, however, investigating further the root causes of homelessness and actions that could be taken to help prevent future cases of homelessness.
To address this problem the Council was using 21 properties from its housing stock to use as temporary accommodation for people at risk of becoming homeless. Bed and Breakfast accommodation also continued to be used in emergency situations.
vi) Risk of inability to collect rent
There had been some technical problems in recent months involving processing of rent payments and the transfer of housing benefit payments using Council ICT systems. There had also been some problems with tenants who were not paying rent. As a result of service transformation Officers were, however, confident that these problems had been largely resolved.
Officers confirmed that as a result of service transformation the Council was providing direct support to people who were struggling to pay their rent. This included working with people to identify the reasons that were causing them to default on payments. These reasons could be multiple and complex, including health, mental health, education, and other causes. Where causes could be identified staff worked with partner organisations to attempt to help that customer. This approach had started to pay dividends and rent arrears owed to the Council were falling.
vii) Risk of failure to effectively manage leaseholder properties
There were a number of leaseholders who had purchased flats in blocks where Council properties were also located. The leaseholders were responsible for contributing payments towards the maintenance of communal areas. In the past the Council had not always been particularly proactive when raising bills for payment. There was also greater scope for the Council to interact with leaseholders about the works that they could undertake independently.
viii) Risk of failure to effectively manage capital projects
Housing Officers were working closely with the Council’s Procurement team to ensure that contracts for capital projects were appropriate. Officers were attempting to approach expenditure of capital funding in a different way, such as in accordance with the work of the Locality teams.
ix) Risks with data systems.
Officers recognised that appropriate systems needed to be available to staff to enable them to undertake tasks required for the delivery of Housing Services.
x) Risk of potential for an increase in demand for Right to Buy
There had been an increase in both enquiries about Right to Buy and the number of purchases that had occurred during the previous 12 months; approximately 20 properties had been purchased during this period under Right to Buy rules compared to an average of four in preceding years.
Sales to tenants under Right to Buy rules reduced the housing stock available to accommodate Council tenants. However, the Council can keep 25% of Right to Buy sales money and use up to 30% of the revenue to put towards the purchase of a property. The Council had bought approximately five properties using this funding already, though a further six properties were in the process of being purchased. The Council was specifically seeking to obtain certain types of properties, such as two bedroom houses and bungalows, in order to meet demand in the Council’s allocations process. However, once an individual had been a Council tenant or (Registered Social Landlord tenant) for five years they would become eligible to purchase it under Right to Buy rules.
xi) Risk of failure to obtain the contract for Home Support Services from Worcestershire County Council
All of Worcestershire County Council’s Supporting People contracts had either already expired or were due to come to an end shortly. As part of this process the Council’s current Home Support Service contract with the county Council was due to end in September 2014.
The Home Support Service provided support to vulnerable and elderly people living in sheltered accommodation. Under the Supporting People contract tenants in receipt of housing benefits had received the Home Support Service for free. The Council was seeking to continue to provide some parts of this service, though it was likely to be subject to the payment of a fee. Affected tenants were in the process of being consulted about these changes and those in receipt of a free service would be asked to consider whether they would be prepared to pay for the service.
The potential for some Home Support Services to be paid for directly through housing benefit payments was briefly discussed. Officers explained that it was not possible for tenants to pay for the Home Support Service directly through housing benefit payments. However, it was possible that a service charge could be introduced which could be paid for using housing benefit.
xii) Risk of failure to obtain payment from St David’s House tenants due to changes in contracts
The Council currently had two contracts with Worcestershire County Council with implications for St David’s House; the Supporting People contract, and a care contract. The county Council was seeking to procure the care contract in future from a single provider and the Council had submitted a bid to provide this service.
Under the terms of the existing contracts payments were made by tenants to Worcestershire County Council. in future payments would need to be made directly to Redditch Borough Council. Staff at St David’s House were receiving training to enable them to support tenants to make payments in ways that best met their needs. This was occurring at a time when the Council was streamlining services provided at St David’s House.
Business Transformation
The Business Transformation presentation detailed the operational risks within ICT Services, Human Resources and the Information Management teams. As these were all enabling services it was important to ensure that each of these services continued to transform to ensure that they met the needs of front line services.
In ICT there had been some difficulties recruiting and retaining qualified staff. This was partly as a consequence of an increase in demand for skilled workers at a time when salaries within the private sector were raising whilst they remained fairly static within the public sector. Apprentices were being recruited to fill some of the gap, though the recruitment process was being reviewed as delays in getting an individual into their post had an impacted on capacity within the team.
The ICT team was also careful to maintain and test disaster recovery arrangements to ensure that core data was not lost. In previous years back up tapes had been used but it was recognised that these were not particularly secure. Increasingly, therefore, virtual systems were being used to store data securely. As part of this process the Council would retain an entire copy of data for Redditch systems which was stored in Bromsgrove (and vice versa).
Public Sector Network (PSN) requirements meant that the Council needed to apply business server patches more regularly than in previous years. To ensure that the Council could fulfil this requirement effectively a roll out plan and schedule had been developed.
Support was also required within the ICT team for service transformation and system upgrades within the Council, including the introduction of Windows 7 and Word 2008. Again a strategic plan had been developed and staff were adopting a flexible approach to working in order to prioritise workloads.
With regard to Information Management there were a number of risks associated with the potential for the loss of data, storage of data and breach of data protection rules. To address these risks the Council was restricting access to some forms of data or using encryption when appropriate. Data management training was provided consistently to all staff and audits were undertaken to identify the reasons for any data breaches.
The Human Resources team needed to invest sufficient resources to support the needs of the organisation. This included investing in developing the skills of managers and team leaders particularly with regard to people management skills. This would enable the Human Resources team to focus on offering specialist support where required through service transformation.
RESOLVED that
the presentations be noted.