combined assurance status report...combined assurance status report 5 critical systems 78 critical...

Appendix A

City of Lincoln Council

Combined Assurance Status Report

February 2017


Introduction 1

Key Messages 3

Critical Systems 5

Key Projects 10

Key Partnerships 12

Key Risks 13

The contacts at Assurance Lincolnshire for this review are:

John Scott

Audit Manager (Head of Internal Audit)

[email protected]

Paul Berry

Principal Auditor

[email protected]


1

Introduction

This is the fifth combined assurance report for the Council.

By grouping the different sources of assurance in a single model we provide the basis for Senior Management and the Audit Committee to gain a better understanding of their organisations assurance status and needs. We do this by coordinating assurance arrangements – providing some structure – this is the Assurance Map. We have well established Assurance Maps that help us to focus our work plans on the make or break risks that affect the successful delivery of services and strategic objectives. The Map also recognises the importance of critical business systems that support successful delivery and ‘protect the business’ – the due diligence activities. The Map gives an overview of assurance provided across the whole organisation – not just those from Internal Audit – making it possible to identify where assurances are present, their source, and where there are potential assurance ‘unknowns or gaps’. The Map is an invaluable tool for senior managers, providing a

snapshot of assurance at any point of time. This report

explores those assurances in more detail.

We gathered and analysed assurance information in a control

environment that:

takes what we have been told on trust, and

encourages accountability with those responsible for managing the service.

Scope

We gathered information on:

Critical systems – those areas identified by senior

management as having a significant impact on the

successful delivery of our priorities or whose failure could

result in significant damage to our reputation, financial loss

or impact on people.

Due diligence activities – those that support the running

of the Council and ensure compliance with policies.

Key risks – found on our strategic risk register,

operational risk registers or associated with major new

business strategy / change.

Key projects –supporting corporate priorities / activities.

Key partnerships – partnerships that play a key role in

successful delivery of services


2

Methodology

To ensure our combined assurance model shows assurances

across the entire Council, not just those from Internal Audit,

we leverage assurance information from your ‘business as

usual’ operations. Using the ‘3 lines of assurance’ concept:

Our approach includes a critical review or assessment on the

level of confidence the Council can have on its service

delivery arrangements, management of risks, operation of

controls and performance.

We did this by:

Speaking to senior and operational managers who have the day to day responsibility for managing and controlling their service activities.

Working with corporate functions and using other third party inspections to provide information on performance, successful delivery and organisational learning.

Using the outcome of Internal Audit work to provide independent insight and assurance opinions.

Considering other information and business intelligence that feed into and has potential to impact on assurance.

We used a Red (low), Amber (medium) and Green (high) rating to help us assess the level of assurance confidence in place.

The overall assurance opinion is based on the assessment and judgement of senior management. Internal audit has helped co-ordinate these and provided some challenge but as accountability rests with the Senior Manager we used their overall assurance opinion.

• Accountable for Delivery Management

• External Inspections & Internal Assurance

Functions

Corporate and Third Party

• Independent Assurance Internal Audit


3

Key Messages

We identified 78 critical services/systems, 27 projects (8 current SPIT projects and 19 strategic plan projects) and 7 strategic risks. Out of the total of 112 areas;

84 have Green assurance (76%)

24 have Amber assurance (22%)

3 have Red assurance (2%) All assurance ratings have improved compared to 2015/16. Critical services/systems; 60 Green (77%), 15 Amber (19%) & 3 Red (4%) – see pages 5-9 for further details and graphs. Strategic / SPIT Projects; 19 Green (69%) & 8 Amber (31%) – see pages 10-11 for further details and graphs. Strategic Risks; 6 Green (86%) and 1 Amber (14%) – see pages 13-14 for further details and graphs.

Red Amber Green

2%

22%

76%

Overall Assurance Status 2016/17

Red Amber Green

7%

28%

65%

Overall Assurance Status 2015/16


4

Suggested next steps……

This is a positive report and shows an improving assurance

position. Plans are in place to manage any mitigate any

Amber or Red assurances.


5

Critical Systems

78 critical services/systems were identified and of these

management considered 60 (77%) to be Green and 15 (19%)

to be Amber and 3 Red. (4%)

Internal Audit provided assurance on 53% of areas (within the

last 3 years plus current year) 16% of areas not recorded as

previously reviewed.

4%

19%

77%

Red

Amber

Green

Unknown

Management

Corporate & 3rd Party

Internal Audit

100%

27%

51%

Who Provides Your Assurance


6

Chief Executives Directorate

Within the Chief Executives Directorate, the following key

services / critical systems operate

• CX Business Management, Legal, Electoral Services,

Democratic Services, Procurement, HR (and payroll),

Workbased Learning, Civic and Twinning

• Finance, Insurance, Creditors, Debtors, Risk

Management, Audit, Commercialism, Revenues, Benefits,

Property Services

• Communications, Business Strategy, Performance,

Strategic Information Provision, Social Policy (Anti-Poverty /

Community Cohesion), Partnership management, Business

Development and ICT, Customer Services

The following services received a green assurance:

CX Business Management

Democratic Services,

Civic and Twinning

Finance,

Creditors,

Debtors,

Risk Management,

Audit,

TOFS

Revenues; NNDR, CTS, Recovery, Council tax, Benefits

Property Services

Managed Workspaces

Small Business Support

Business Strategy,

Performance management

Equality and diversity

Corporate governance

Strategic Information Provision,

Social Policy (Anti-Poverty / Community Cohesion), Partnership management

Business Development and ICT,

Customer Services

Project management (frameworks)

Corporate Governance

Equality and Diversity

Partnership governance

Business Continuity The Amber and Red assurance areas are; Legal – The information governance project is making good progress; there is further work to complete and resources have been secured for 2017/18. Addressing the forthcoming EU data protection regulation will be part of this work. Vision 2020 project support around growth will be significant and legal work complex and resources will be carefully managed. Ongoing work around Transport Hub, Boultham Park and


7

Housing (including Housing Company) remains Amber until completion. Further Member Code of Conduct training will be provided. Elections-Further training on elections is required internally in the short term; appropriate external support will be obtained. Procurement-Good compliance but there are some resource pressures. Procurement Lincolnshire involvement will cease as of 1.4.18 and preparations for that are underway. Updated Contract Procedure roll out for 2017/18. HR/payroll The new People strategy is on track; there are several linked projects including appraisal, recruitment, managing attendance, and training to be completed. There could be changes to the job evaluation scheme. There is also a new OH provider and new agency worker contract transition to manage. Payroll responsibilities in some areas need to be clarified and the overtime/enhancement project has not progressed as expected. Work based learning-current changes and risks to apprenticeship funding is being project managed. The Government is introducing a new apprenticeship levy and the impacts are being assessed. Insurance-With the loss of the insurance officer arrangements are in place for further external support and more input from service areas. Communications-delivery is good; there are risks in achieving the commercial financial target set Counter Fraud – The counter fraud partnership continues; there is a refreshed CF strategy, action plan and fraud risk register. However there are a lack of resources generally to take on much pro-active work outside of fraud partnership and NFI and SFIS engagement. This includes CTS fraud, tenancy fraud.

Property Services-Facilities Management - new asset management plan required and scheduled for 2017/18. Asset review programme has been taking place. Still an area where there is insufficient resource and the AMP would Assist. Business Continuity (RED) - IT Disaster recovery project well underway; still to complete IT DR plan. Updating BCP's currently to tie in with IT DR; remains Amber until this work is completed Other areas (green assurance): benefits subsidy claim still qualified; but this will take time to reverse. Finance is overall green assurance but TOFS remains Amber due to 18/19 target achievement. There are new Financial Regulations due out in early 2017/18; there are some compliance concerns. Customer service is overall green but telephony remains Amber – a new system will be in place shortly. A new Customer experience strategy will be completed shortly. Further work to complete on “channel shift” projects to maximize outcomes. Work has commenced on the reshaping local government agenda – which is also a strategic risk.


8

Communities and Environment Directorate

The following services received a green assurance: Planning (Development Management) Planning policy (Joint Strategic Planning) Planning (Heritage) Public Protection and anti-social behaviour CCTV Parks & Open Spaces & Allotments Street Cleansing Grounds Maintenance Waste Public Conveniences Car Parks Bus Station Environmental Protection Pollution Control Food safety Licensing Community Centres Crematorium and Cemeteries Events, Culture and Tourism The Amber and Red assurance areas are; Strategic waste management – Recycling rates have not continued to improve, and contamination of recycling streams has become more of an issue. Ultimately these could pose operational and financial challenges if service changes are

required to address these issues. The district Councils have submitted a proposal to the County Council on how to address contamination, but this has been rejected on grounds of cost. The County Council are now seeking to link both the contamination issue and their new contract for handling recycling material through the development of a new Joint Municipal Waste Management Strategy, which is being developed currently. Health & Safety Expectation that following audit of CHS (Health and Safety development plan) in quarter 4 that will become green; incident reporting and risk assessment gone live - monitoring implementation. Responsible Officer roles to complete. Private Sector Housing – looking to improve the rate of DFG grant delivery; options for the delivery of a future emergency grant scheme. The trusted landlord scheme needs implementing 2017/18 and plan being developed. Empty Homes strategy to be refreshed. Applied for further rogue landlord funding. HMO are key focus; more structured plan being developed. Mandatory HMO licensing will increase significantly 17/18. Sport and Leisure (RED) - Still trying to resolve tri-partite agreement and identify/assess mitigation options. Market income down. Neighbourhood working (RED)- Consultation commenced on refocus of NW for the City. Building Control - income level is still a risk Other areas (green assurance): a new public health strategic partnership is being developed. The Greater Lincs local plan – anticipating inspectors report mid- March 2017.


9

A review of health and safety processes and procedures

associated with open space management is identifying some

benefits from updating certain elements. This is expected to

place an additional burden on existing staff resources,

impacting other street scene services.

Housing and Regeneration Directorate The following services received a green assurance: Housing Business Support HRA/Landlord Services (Tenancy Services) Supported Housing Void Properties Lincare / Control Centre Housing Repairs Service Housing Investment Safety Assurance Choice based lettings/housing allocations Growth and Regeneration Environmental Strategy Economic Development Housing Strategy and Enabling The Amber and Red assurance areas are;

Property Shop/Choice based Letting and Registration-There are current issues with the CBL software which are being addressed and revising procedures. Homelessness- Legislative changes are coming forward which will mean the Council is responsible for more people. We need to focus on prevention and this work is being started now. There is an increase in applications, it is increasingly harder to place in private accommodation, less affordable rents and LHA caps; private landlord and rent deposit schemes are being reviewed; Other areas (green assurance): A new rechargeable repairs policy has been introduced which requires full implementation; there is a new stores contract for City maintenance services and the location of new stores. The Council will be seeking accreditation of the Housing tenant ASB charter – Respect - in 17-18. The Directorate continues with its new build housing investments including establishing a new Housing company. The housing strategy will be completed and approved. Major Developments Directorate The following services received a green assurance: Growth (Regeneration strategy & delivery) Supporting strategic infrastructure projects Investments (large business enquiries, local business support, promotion of the city)


10

Other areas(green assurance): Growth challenges outlined

in the Vision 2020 plan – attracting investment, housing, skills,

renewal areas. Reviewing WGC and costings.


11

Projects

Overall Comments

The Council has a range of strategic projects linked to the

previous strategic plan, transformation and capital schemes.

There are currently 18 Strategic Plan and 8 current SPIT

(Strategic Plan Implementation Team) projects.

Once a new monitoring process is agreed these strategic

projects will be replaced by the new projects from Vision 2020.

18 are rated as Green

8 are rated as Amber

Amber or Red assurance projects are:

SPIT:

Compulsory Acquisition - 13 Albany Terrace

Data Recovery and Back Up

Strategic Plan (2015-17):

There are 35 Strategic Plan projects currently under

consideration. As of 31st January 2017 of the 35 monitored

projects there are 14 completed projects (3 of these

completed in this period); 1 is classified as off track, 6 have

0%

31%

69%

0%

Red

Amber

Green

Unknown


12

some slippage and 12 that are on track. There are a further 2

projects that are classed as deferred or merged.

Of the 19 remaining live projects – 6 are almost complete; 10

are continued in the Vision 2020 and just 3 have been

dropped (Devolution; the specific combined heat and power

for WGC project and the idea for an energy service company

(ESCO))

Amber projects (some slippage – not causing significant

issues):

There are six amber projects, none of which are causing

serious concerns.

These are:

Development of Central Lincolnshire local plan

Development of a Business prospectus

Increase opportunities for locals people to access training and then employment

Implementation of landlord accreditation scheme

Deliver empty homes strategy

Seek accreditation of the Housing tenant ASB Charter Management of Risk

Each project is assigned a project manager and suitable

corporate support is identified. Project performance is

managed through SPIT (Strategic Plan Implementation Team)

or a separate Board. TOFS (Towards Financial Sustainably

Board) projects are managed through a TOFS Board.

Mega projects have their own project governance and Board

frameworks. There are 4 Mega projects; Boultham Park,

Transport HUB and Western Growth Corridor plus Housing

new Build/Delivery Group.

Another area of focus is the Lincoln Anti-Poverty Action Plan

which has a range of projects and actions. Some key areas

have been included within Vision 2020.

The Executive receive information on all projects.

We are conscious of the need to ensure that all projects are

properly resourced whilst maintaining the ability to deliver day

to day services.

As well as the key corporate projects identified in this section,

there are also smaller projects delivered across the Council.

We are satisfied that appropriate mechanisms and processes

are in place to manage the Council’s major projects.


13

Partnerships

Overall Comments

Significant work has been completed reviewing partnerships

over the last 12-18 months ensuring that governance

arrangements are in place and that the right officers and

members are representing the City Council. There is a key

partnership register covering both member and officer

involvement. The Chief Executive has been pro-active in

connecting with key partners - this is ongoing and includes

The Chamber of Commerce, Universities, Police, Greater

Lincolnshire LEP and others. There is currently a piece of

work around Growth and engagement with stakeholders and

key partners.

Management of Risk

• Governance arrangements are in place for all significant

partnerships, working to agreed terms of reference and

incorporating performance management aspects. Partnership

guidance document rolled out during 2013/14 is currently

being updated.

• We interact with the voluntary sector and have built strong

relations with those bodies supporting the council’s strategic

priorities- in particular the Third Sector Infrastructure Body for

Lincoln – Voluntary Centre Services, which is now located in

City Hall.

Management have not identified any non-compliance with the

Council’s partnership / joint working corporate guidance.

Internal Audit will carry out a partnerships internal audit in

2017/18 to obtain independent assurance on partnership /

joint working governance.


14

Risks

Strategic Risks

The Council has 7 Strategic Risks – 3 are assessed as Red

and 4 as Amber. The Red risks are;

All risks are being actively managed in accordance with the

Risk Management Framework.

Amber strategic risks are:

To deliver a sustainable Medium term Financial

Strategy

Deliver the Towards Financial Sustainability

Programme whilst ensuring the resilience of the

Council

Meet the emerging changes required in the Council’s

culture, behaviour and skills to support the delivery of

the council’s Vision 2020 and the transformational

journey to a “performance culture”.

Ensure sufficient levels of resilience and capacity exist

in order to deliver key strategic projects within the

Council

The Council has an active approach to risk management and

has reviewed the key strategic risks facing the Council.

As well as the risks identified in this section, Managers identify

operational risks and these are managed through similar

processes.

• Engaging with the Council’s strategic partners

and stakeholders to deliver against the Council’s

Vision 2020.

• • To ensure compliance with statutory duties

and appropriate governance arrangements are in

place, including: Health & Safety, Information

Management/IT Security, ICT Disaster

Recovery

• Develop an appropriate strategic response to the

changing structures in Local Government


15

Strategic risks are managed through CMT and are reported

through the Performance Scrutiny Committee / Executive.

Each risk is managed through a member of the Corporate

Management Team.

Overall, risks are clearly identified and well managed by the

Council.

All Strategic Risks have a management assurance which

reflects how well the risk is being managed rather than the risk

score;

All strategic risks have Green management assurance, with

the exception of the strategic response to the changing

structures in Local Government.

Operational Risks

There are three operational (Directorate) risk registers. There

are four Red risks linked to:

Recycling rates - Proposal made by Districts to County

to address recycling rates- response awaited

Failure to meet the Affordable Homes target – a key

target of the Housing Strategy – various

initiatives/projects to mitigate risk

Management of financial pressures (DCE) (TFS

programme; Income targets; Tripartite Agreement; Unfunded

budget pressures; Managing growth; Car parking income levels

during Hub construction

Failure to maintain properties/facilities safely, in

accordance with Council’s tree of responsibility - Individuals who haven’t accepted responsibilities to be targeted for

resolution

All risks are being actively managed in accordance with the

Risk Management Framework

Emerging Risks

No red emerging risks have been identified that are not

already identified within existing risk registers and service

plans.


16

End of report

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