nipec assurance framework: corporate risks 2016/17 · 2017-02-10 · nipec council’s executive...

NIPEC Council’s Executive Summary of Risks – 2016-17 – Version 11 : dated February 2017. of 12

NIPEC Assurance Framework: Corporate Risks – 2016/17

NIPEC maintains an Assurance framework which includes corporate risks which could pose a strategic level risk to the organisation. These high level risks are derived from and described within the key priority areas included in NIPEC’s current corporate plan and business objectives. The high level corporate risks for 2016/17 are as follows:

1. Governance and Performance: - Delivering the financial savings, productivity and cash releasing efficiencies towards

achieving year-end financial break even.

2. Governance and Performance: - Business Plan objectives and work plan 2016-17

3. Governance: - Council membership vacancies

4. Leadership: - Interim Chief Executive post

5. Accommodation: - Exit Clause in Accommodation Lease

The Assurance Framework includes the identification of principle risk, existing controls and where relevant, gaps in controls with actions to address any such gaps. The Assurance Framework is submitted for review by the Audit and Risk Committee at each of its meetings. The Audit and Risk Committee in turn provides an account of its activities (through the minute of its meetings) to Council at each Council meeting (which are open to the public). Through this process the Audit and Risk Committee is able to provide an assurance to Council that corporate level risks are identified, assessed, managed and controlled. See Annexe 1 for risk scoring system.


Summary Sheet of movement in high level corporate risks for 2016/17 from previous version.

High Risk Area

Rating on previous version

January 2016

Rating on current version February 2017

Movement (up/-/down)

1 Governance and Performance: Delivering the financial savings, productivity and cash releasing efficiencies towards achieving year-end financial break even.

-

2 Governance and performance: Business Plan objectives and work plan 2016-17

-

4 Governance: Council membership vacancies

-

5 Leadership: Interim Chief Executive post (Risk closed April 2016)

6 Accommodation: Break Clause in Accommodation Lease (Risk closed December 2016)


1. Delivering the financial savings, productivity and cash releasing efficiencies towards achieving year-

end financial break even.

Corporate Objective Area

Principle Risk Existing Controls Gaps in Controls Actions to be taken and Target date

Governance and Performance

Failure to achieve the required 5% reduction in the RRL and , therefore, not meeting the financial end of year performance target of containing net expenditure within 0.25% of RRL limits, or £20,000, whichever is the greater.

Revenue budgets drawn up which reflect the 5% reduction in the RRL and a savings plan in place to facilitate this. The full implementation of the VES process, under taken in 2015-16, from 1st April 2016 has assisted in the savings plan. Monthly monitoring of management statements. Monthly RRL and CRL returns to DHSSPSNI. Standing Item on the monthly agenda for the Business Team meetings and on the agenda for the monthly ‘one to one’ meetings between CE and HCS. Monthly reconciliation of Bank account and draw down funds

-

NIPEC will monitor with the BSO, Finance the further implementation of controls and reports available from the FPL module during the year. Target date is completion of financial year 2016-17 i.e. 31 March 2017.

Likelihood: 1 Impact: 2 Score: 2 (Low)




Financial strategy and annual financial estimates approved by Council (via Audit and Risk Committee) and DHSSPS. Accountability arrangements in place for staff. System in place for budget setting which involves all relevant parties. Process for identification of emerging pressures. Internal Audit reports.

o Mid-Year Assurance Statement (Sept.,/October 2016)

o End of Year Assurance Statement (March/April 2017) External Audit reports.


2. Business Plan objectives and work plan 2016-17



Governance and Performance

Failure to achieve all the work/project objectives within the 2016-17 Business Plan due to a temporary reduction in the staffing issues at SPO Level.

NIPEC’s Sponsor Branch has been kept up to-date on an ongoing basis in regard to NIPEC’s manpower position. The business plan objectives and work load is monitored at the monthly Business Team and Professional Team meetings. Also, written feedback in a matrix format, which is ‘RAG’ coded, is taken to each quarterly Council meeting.

-

A substantial element of the work of the member of staff on a ‘career break’ has been relocated across the other senior professional officers. NIPEC has now put in place in November 2016 an Associate Professional Officers list from which it can use nursing and midwifery expertise, as and when required, to assist with NIPEC project work.

Likelihood: 3 Impact: 3 Score: 9 (Medium)


3. Council membership vacancies



Governance:

Reduced capability of the Council .

As of July 2015 Council membership of 16 has been reduced due to four vacancies in the categories of:

2 Professional positions i.e. 22% of the professional membership and

2 Lay position i.e. 33% of the lay membership.

Public Appointments Unit and Sponsoring body aware of vacancies.

NIPEC is dependent on DHSSPS to activate and liaise with Public Appointments Unit in taking the matter forward.

DHSSPS, Public Appointments Unit to take forward the advertising and arrangements for the filling of the vacant positions. Target date is dependent on Public Appointments Unit and due to other public body vacancies currently in the system the likely timeframe for filling the NIPEC vacancies is most likely not within the next six months. NIPEC raised the issue again in an e-mail dated 12th October 2015 with its Sponsor Branch and a response dated 23rd October has been

Likelihood: 2 Impact: 3 Score: 6 (Medium)


received informing NIPEC “that the DHSSPS is aware of the current position and will be taking account of these as they consider their forward work programme.” A summary sheet showing NIPEC’s Council membership terms of office over the next two years was circulated at the Accountability Ground Clearing meeting held on 4th November 2015 and a copy of a summary sheet was taken to the November meeting of the Council. NIPEC also raised the matter at a Sponsor Branch meeting held on the 11th January 2017 and shared a copy of the summary sheet. The DoH are currently examining if some members could have their terms extended. NIPEC’s Audit and Risk


Committee were updated on the current position at its meeting held on 7th February 2017.


4. Interim Chief Executive post – (Risk Closed April 2016)



Leadership

Failure to have the Chief Executive post filled as a permanent appointment within the NIPEC staffing structure and the impression this gives regarding the longer term future of the organisation.

NIPEC’s Sponsor Branch is aware of the situation and NIPEC’s desire to have this post filled on a permanent basis.

-

The current secondment arrangement is that the CE is seconded from the DHSSPSNI until the 30 June 2018 (e-mail of 14th April 2016 from CNO)



Exit Clause in Accommodation Lease – (Risk Closed December 2016)



Accommodation

NIPEC is required to invoke the exit clause in the lease and vacate the accommodation by the 30 November 2016.

In line with circular PEL 14 (04) dated 8 August 2014 a SOC/Business Case was produced and forwarded to the sponsoring branch and DFP on the 2 March 2016. Submission of the SOC/Business Case allowed a time period for DFP to consider and reach a decision before NIPEC would be required to give the Landlord the required notice period of three months

Decision is outside of NIPEC’s direct control.

Deadline for DFP response is the 31 August 2016 if notice has to be given to the Landlord. SOC/Business Case submitted to AEMB on the 2nd March 2016 after Council meeting on the 1st March 2016

and an amended version submitted in May to address the three potential Public sector sites notified by the DHSSPS which upon examination are not viable options. NIPEC advised of DoF approval to the Business Case in a letter dated the 27th May 2016 Due to LPS advising



NIPEC after the above that the negotiations on the lease were for a straight three year lease, NIPEC submitted a revised business case which was subsequently approved by DoF in a letter dated 15 September 2016. New Lease signed off by both parties in November 2016


Annexe 1: Risk Scoring System Risks are assessed on a scale of 1-5 for impact and probability, using the scoring framework outlined below.

Risk Scoring Framework:

Impact

5 - Catastrophic

High High Extreme Extreme Extreme

4 – Major

High High High High Extreme

3 - Moderate

Medium Medium Medium Medium High

2 – Minor

Low Low Low Medium Medium

1 – Insignificant

Low Low Low Low Medium

1 Rare

2 Unlikely

3 Possible

4 Likely

5 Almost Certain

Likelihood

nipec assurance framework: corporate risks 2016/17 · 2017-02-10 · nipec council’s executive...

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