LISBURN & CASTLEREAGH CITY COUNCIL

Island Civic Centre The Island LISBURN BT27 4RL

6 October, 2016 Chairman: Councillor T Mitchell

Vice-Chairman: Alderman M Henderson MBE

Aldermen: W A Leathem, G Rice MBE and J Tinsley

Councillors: J Baird, S Carson, P Catney, D J Craig, J Gallen, A Girvin, A Grehan, B Hanvey, V Kamble and A Redpath

Ex Officio The Right Worshipful the Mayor, Councillor B Bloomfield MBE Deputy Mayor, Alderman S Martin

The Monthly Meeting of the Governance and Audit Committee will be held in the Cherry Room, Island Civic Centre, The Island, Lisburn, on Tuesday, 11 October, 2016 at 5.30 pm for the transaction of business on the undernoted Agenda.

Hot food will be available from 5.00 pm in Lighters Restaurant.

You are requested to attend.

DR THERESA DONALDSON Chief Executive Lisburn & Castlereagh City Council AGENDA

1. Apologies

2. Declarations of Interest

3. Minutes – Meeting of Committee held on 21 September, 2016 (copy attached)

4. Report by Chief Executive

1. Council Risk Management – Council Corporate Risk Register 2. Budget Report – Chief Executive 3. Rolling Year Absence Figures 4. Community Planning 4.1 Partnership Panel 4.2 SOLACE 5. Performance Improvement Update 5.1 Performance Improvement Audit 5.2 Customer Service Excellence 5.3 Petition Policy 6. Audit Update 6.1 The Rivers Agency: Flood Prevention and Management Report – Issue Date 13 September, 2016 6.2 The National Fraud Initiative: Northern Ireland – Issue Date 7 July, 2016

5. Confidential Business – “In Committee”

1. Report of the Head of Human Resources & Organisation Development (Acting) 1.1 Retrospective Reporting of Redundancies (confidential due to containing information likely to reveal the identity of an individual)

Members are requested to go to the Confidential Folder to access the Governance and Audit Committee confidential report

6. Any Other Business

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To: Members of Lisburn & Castlereagh City Council

GAC 21.09.2016 LISBURN & CASTLEREAGH CITY COUNCIL

Minutes of the Meeting of the Governance and Audit Committee held in the Island Civic Centre, The Island, Lisburn, on Wednesday, 21 September, 2016 at 5:30 pm

PRESENT: Councillor T Mitchell (Chairman)

The Right Worshipful the Mayor Councillor R B Bloomfield MBE

Deputy Mayor Alderman S Martin

Aldermen W A Leathem, G Rice MBE and J Tinsley

Councillors S Carson, P Catney, D J Craig, J Gallen, A Girvin, A Grehan, B Hanvey, V Kamble and A Redpath

IN ATTENDANCE: Chief Executive Director of Corporate Services Head of Internal Audit and Risk Head of Finance & IT Head of Human Resources & Organisation Development (Acting) Transition Manager Community Planning Manager Financial Transaction Policy & Reporting Manager Performance Development Officer Internal Audit Assistant Member Services Officer

Northern Ireland Audit Office

Mr A Knox

1. Apologies

It was agreed to accept apologies for non-attendance at the meeting on behalf of Alderman M Henderson MBE and Councillor J Baird.

2. Declarations of Interest

There were no declarations of interest.

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GAC 21.09.2016 3. Minutes

It was proposed by Councillor J Gallen, seconded by Councillor A Grehan and agreed that the minutes of the meeting of the Governance and Audit Committee held on 20 June, 2016, as adopted at the meeting of Council held on 28 June, 2016, be confirmed and signed.

It was agreed that the confidential business on the agenda would be considered at this point in the meeting.

4. Confidential Business

It was agreed that the reports and recommendations of the Chief Executive be adopted, subject to any decisions recorded below.

The matters contained in the confidential reports would be dealt with “In Committee” due to containing information (a) relating to the financial or business affairs of any particular person (including the Council holding that information); (b) relating to any individual; and (c) likely to reveal the identity of an individual.

“In Committee”

It was proposed by Councillor A Redpath, seconded by Alderman J Tinsley and agreed that the following matters be considered “in committee”, in the absence of members of the press and public being present.

The three confidential reports were considered in the following order: additional confidential report, further additional confidential report, confidential report.

4.1 Lisburn & Castlereagh City Council Report to Those Charged with Governance 2015-2016

The Chairman, Councillor T Mitchell, welcomed to the meeting Mr A Knox, Northern Ireland Audit Office (NIAO).

Members had been provided with a copy of the Lisburn & Castlereagh City Council Report to Those Charged with Governance 2015-2016. Mr A Knox made a verbal presentation on the report, during which he pointed out that the report was still in draft form as management had not had an opportunity to respond to the audit findings. Once the NIAO received the management response, the final document would be issued to the Council. Mr Knox thanked all Council Officers involved for the co-operation and assistance afforded to NIAO staff during the audit process.

It was proposed by Alderman W A Leathem, seconded by Alderman G Rice and agreed to recommend that (a) the draft Lisburn & Castlereagh City Council Report to Those Charged with Governance 2015-2016 be approved; and (b) upon receipt of the final report, this be presented to the Committee together with a traffic light report in order that implementation of recommendations could be monitored. 769

GAC 21.09.2016 4.2 Lisburn & Castlereagh City Council Statement of Accounts For Year Ended 31 March, 2016

Alderman G Rice left, and returned to, the meeting during consideration of this item of business (5.48 pm and 5.50 pm respectively).

The Deputy Mayor, Alderman S Martin, arrived to the meeting during consideration of this item of business (5.52 pm).

Members had been provided with a copy of the Lisburn & Castlereagh City Council Statement of Accounts for the Year Ended 31 March, 2016. The Head of Finance & IT having answered several Members’ queries, it was proposed by Alderman J Tinsley, seconded by Councillor A Grehan and agreed that the Statement of Accounts be accepted and signed by the Chairman, Councillor T Mitchell, and the Chief Executive.

Mr A Knox, Northern Ireland Audit Office, left the meeting at this point, as did the Director of Corporate Services, Head of Finance and IT and the Financial Transaction Policy & Reporting Manager.

4.3 Media Enquiry

Members were provided with the following:

(a) copy of a report by the Head of Marketing and Communications in respect of media queries that had been received regarding the Local Government Auditor’s Report 2016; (b) copy of the NIAO press release relating to this matter; and (c) copy of the NIAO Local Government Audit Report 2016.

Members noted the contents of the above correspondence and agreed that, in the event of a Member receiving a press query, this should be referred to the Head of Marketing and Communications for co-ordinated response.

4.4 Internal Audit Report – MCU

Members were provided with a copy of the Marketing Function Internal Audit Report June 2016, together with a summary of the report. The Head of Internal Audit and Risk having made a verbal presentation on the report and answered several queries raised by Members, it was proposed by Councillor D J Craig, seconded by Councillor P Catney and agreed to recommend that the Marketing Function Internal Audit Report June 2016 be approved.

4.6 Recommendations from External Report

Councillor D J Craig left the meeting during consideration of this item of business (6.14 pm).

Members were provided with a copy of recommendations arising from an external report carried out by Harry McConnell. Following discussion, it was proposed by Alderman J Tinsley, seconded by Councillor S Carson and agreed

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GAC 21.09.2016 4.6 Recommendations from External Report (Contd)

to recommend that the recommendations contained in the external report be approved. It was noted that further reports would be made at future Committee meetings regarding the items relating to ‘Petitions’ and ‘Social Media Training for Members’ and those reports would address a number of suggestions put forward by Members on those issues.

4.7 Extension of Statistician Contract

The Chief Executive set out in her report, information relating to the statistician currently on secondment with Lisburn & Castlereagh City Council and Antrim and Newtownabbey Borough Council. The Community Planning Manager having answered a number of queries raised by Members, it was proposed by Councillor A Redpath, seconded by Councillor A Girvin and agreed to recommend that, in agreement with Antrim and Newtownabbey Borough Council, the contract for the statistician be extended to March 2017, at which time the Council’s needs would be reassessed in line with its strategic review.

4.8 Report of the Head of Human Resources & Organisation Development (Acting)

Members were provided with a copy of a report prepared by the Head of Human Resources & Organisation Development (Acting) containing the following matter:

4.8.1 Efficiency Review 2017 – Progress Report

Members noted from the report of the Head of Human Resources & Organisation Development (Acting), a progress report in respect of the Efficiency Review 2017. In particular, it was noted that Councillor U Mackin would be replacing Alderman W A Leathem on the Elected Member Steering Group.

The Head of Human Resources & Organisation Development (Acting) left the meeting at this point.

Resumption of Normal Business

It was proposed by Councillor S Carson, seconded by Councillor J Gallen and agreed to come out of committee and normal business was resumed.

5. Report from Chief Executive

It was agreed that the report and recommendations of the Chief Executive be adopted, subject to any decisions recorded below.

Items for Decision

5.1 Performance Improvement Report

The Right Worshipful the Mayor, Councillor B Bloomfield, left the meeting at this point (6.28 pm). 771

GAC 21.09.2016 5.1 Performance Improvement Report (Contd)

Members having been provided with a copy of the Council Performance Improvement Report 2015/16, it was proposed by Alderman J Tinsley, seconded by Councillor A Redpath and agreed to recommend that it be approved.

5.2 Community Planning

Members were provided with a copy of an update report by the Community Planning Manager containing the following matters:

5.2.1 Thematic Working Groups

Members were provided with, and noted the contents of, a copy of key themes that had emerged from Thematic Working Group meetings held on 29 July and 3 August, 2016.

5.2.2 Finance

Members noted from the Community Planning Manager’s report, details of the financial cost to the Council of Community Planning activities since April 2015.

5.2.3 Strategic Community Planning Partnership Minutes

Members were provided with, and noted the contents of, a copy of minutes of the Strategic Community Planning Partnership (SCPP) meeting held on 2 June, 2016.

5.2.4 Officers Working Group Minutes

Members were provided with, and noted the contents of, a copy of the minutes of the Officers Working Group meeting held on 21 June, 2016.

5.2.5 Engaging a Consultant to Facilitate Production of the Community Plan

Councillor A Redpath left the meeting during consideration of this item of business (6.40 pm), as did Councillor P Catney (6.44 pm).

The Community Planning Manager advised that, at the Strategic Partnership meeting held on 1 September, 2016, discussion had taken place regarding the need to engage a consultant to write the Community Plan in order to ensure ownership stayed with the SCPP and was not seen solely as a Council plan. Representatives from statutory agencies on the Partnership disagreed and indicated that they were not in a position to contribute to the cost of a consultant. There was a very tight timescale for the production of the Draft Community Plan and a consultant required to the appointed in the next few weeks. Members were provided with details on the process for engaging a consultant, the estimated cost of which was approximately £28,000.

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GAC 21.09.2016 5.2.5 Engaging a Consultant to Facilitate Production of the Community Plan (Contd)

Discussion took place, during which Members expressed their disappointment and concern that the statutory agencies in the SCPP, with the exception of one, had refused to contribute to the cost of engaging a consultant or towards the funding of the Datahub. Alderman W A Leathem advised that he would be raising this matter at the next Partnership Panel meeting.

It was proposed by Alderman J Tinsley, seconded by Councillor A Grehan and agreed to recommend that the appointment of a consultant to develop the Community Plan, at an estimated cost of approximately £28,000, be approved.

5.2.6 Carnegie UK Trust Conference Towards a Wellbeing Framework: From Outcomes to Actions – 28 September, 2016

Members noted from the Community Planning Manager’s report, information regarding the above conference.

5.2.7 Age Friendly Framework

The Community Planning Manager reminded the Committee that the Council was working in partnership with Ards and North Down Borough Council, the Public Health Authority and the South Eastern Health and Social Care Trust to develop an Age Friendly Strategy which would be used as a self-assessment tool and a map to chart progress in the delivery of an Age Friendly City Council area. The launch of this would be at a conference on 16 November, 2016, hosted by the Council, after which work would begin on the development of the strategy. As the Age Friendly brand (copy of which Members had been provided with) was widely accepted, it was proposed by Councillor J Gallen, seconded by Alderman G Rice and agreed to recommend that the Council adopt the already-recognised Age-Friendly logo.

In response to comments by Councillor J Gallen, the Chief Executive agreed that training for Members in relation to the General Power of Competence would be arranged and that the establishment of a General Power of Competence Policy would be progressed.

Items for Noting

5.2.8 Partnership Panel Membership

Members noted that Alderman W A Leathem had replaced Councillor L Poots as the DUP representative on the Partnership Panel, with effect from the date of the Annual Meeting of Council, namely 14 June, 2016.

Councillor A Grehan left the meeting at this point (7.01 pm).

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GAC 21.09.2016 5.2.9 Social Media Policy Update

Alderman G Rice left the meeting during consideration of this item of business (7.05 pm).

The Chief Executive reported that a policy for the effective management of Council-owned social media platforms had been developed and forwarded to Heads of Service for consultation before Member approval was sought. Areas covered included the use of social media, relationships with other corporate strategies, the creation of Council social media platforms, employee responsibilities, risk, timeliness of social media, complaints handling and monitoring of platforms.

A policy regarding employees’ private use of social media was also currently under development.

It was noted that the Northern Ireland Ombudsman’s Office was currently producing Guidelines for Elected Members regarding the use of social media and, once issued, further information would be provided to Members.

6. Any Other Business

There was no other business.

There being no further business, the meeting was terminated at 7.06 pm.

Mayor/Chairman

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LISBURN & CASTLEREAGH CITY COUNCIL MEETING OF GOVERNANCE AND AUDIT COMMITTEE – 11 OCTOBER, 2016

REPORT BY DR THERESA DONALDSON, CHIEF EXECUTIVE

PURPOSE AND BACKGROUND

The purpose of this report is to set out for Members’ consideration, a number of recommendations relating to the operation of the Council.

The following decisions are required:

To consider the corporate risks and approve the amended Risk Register

To note a budget report for the Chief Executive’s Office

To note the rolling absence figures for the Chief Executive’s Office

To note the items in the Community Planning Manager’s Report

To note the matters contained in the performance improvement update

To note the information contained in the audit report

ITEM FOR DECISION

1. COUNCIL RISK MANAGEMENT – COUNCIL CORPORATE RISK REGISTER

Attached, under Appendix 1, is the updated Corporate Risk Register dated September 2016. The risks were reviewed by the CMT in August 2016. The key changes to the document are:

(a) Removed: Risk 5 – Potential failure to secure an appropriate budget and adequate resources to meet office needs and demands for effective service delivery. This risk was removed as the residual risk score has been reduced over the past year.

(b) Merged: Risk 11 and 12 Loss of funding from Central Government and other bodies and Loss of Income streams. Rationalisation of the two risks into one consolidated risk.

(c) New: Risk 5 – Failure to deliver programmes and projects that economically benefit the Council area. This risk relates to the uncertainty of European and other funding on the ability to carry out projects.

Recommendation

It is recommended that the Committee consider the corporate risks and approve the amended Risk Register.

ITEMS FOR NOTING

2. BUDGET REPORT – CHIEF EXECUTIVE

Attached, under Appendix 2, for the information of Members, is a copy of the Budget Report for the Chief Executive’s Office for the year to 31 March, 2017, as at 31 August, 2016.

Recommendation

It is recommended that the Committee note this information.

3. ROLLING YEAR ABSENCE FIGURES

Attached, under Appendix 3, for the information of Members, is a copy of the Rolling Absence Figures for the Chief Executive’s Office for the period to 31 March, 2015 to July 2016.

Recommendation

It is recommended that the Committee note this information.

4. COMMUNITY PLANNING

Attached, under Appendix 4, is a copy of a report prepared by the Community Planning Manager providing an update on community planning matters.

Recommendation

It is recommended that Members note the items in the Community Planning Manager’s report.

5. PERFORMANCE IMPROVEMENT UPDATE

Attached, under Appendix 5, is a copy of an update report regarding a number of performance improvement matters.

Recommendation

It is recommended that the matters contained in the update report be noted. 6. AUDIT UPDATE

Attached, under Appendix 6, is a copy of an audit report regarding Northern Ireland Audit Office Reports that had been released recently.

Recommendation

It is recommended that the information contained in the audit report be noted.

DR THERESA DONALDSON CHIEF EXECUTIVE 6 October, 2016 Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Appendix 1 Restricted - Not to be Reproduced without Permission Risk Assessment Form

Completed by: R S Lawther Date completed: 30th September 2016

Risk Risk Assessment of Risk Risk Assessment of Residual Risk Responsible Review Number Control Frequency Impact Likelihood Risk Impact Likelihood Residual Measure Score Risk Score 1 Potential failure to monitor, review and 4 3 12 CRR/1/15 4 2 8 CMT Quarterly audit H & S and other legislative requirements which could result in serious injury or loss of one or more lives due to council negligence 2 Fraud and corruption 4 2 8 CRR/2/15 4 1 4 CMT Quarterly 3 Loss of corporate image and reputation 3 2 6 CRR/3/15 3 1 3 CMT Quarterly due to performance management culture not embedded within the Council, the outcome could led to legal action or sanction if the Council does not carry through performance initiatives 4 The arrangements in place for civil 3 4 12 CRR/4/15 3 3 9 CE Quarterly contingencies and business continuity are not effective. 5 Failure to deliver programmes and 4 3 12 CRR/5/16 4 2 8 CMT Quarterly projects that economically benefit the Council area 6 Failure to deliver Community Plan in 4 3 12 CRR/6/15 4 2 8 CMT Monthly legislated timescale and failure to demonstrate inclusivity in the delivery of Community Plan including Partnerships not managed effectively and key service outcomes not achieved

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 1 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission

Risk Risk Assessment of Risk Risk Assessment of Residual Risk Responsible Review Number Control Frequency Impact Likelihood Risk Impact Likelihood Residual Measure Score Risk Score 7 Potential failure of Leachate 4 3 12 CRR/7/15 4 2 8 Director of Monthly Management Systems at former Landfill ES Sites 8 Failure to meet waste management 4 4 16 CRR/8/15 4 3 12 Director of Monthly targets ES 9 Planning and Area Planning 4 3 12 CRR/9/15 4 2 8 Director of Quarterly Development 10 Failure of ICT Systems 4 4 16 CRR/10/15 4 2 8 Director of Monthly CS 11 Loss of Income streams 3 4 12 CRR/11/16 3 3 9 CMT Quarterly

12 Loss of Data 4 3 12 CRR/12/15 4 2 8 Director of Quarterly CS 13 Failure of the security of IT systems 4 4 16 CRR/13/15 4 3 12 Director of Monthly CS

Removed 5 Potential failure to secure an appropriate 4 2 8 CRR/5/15 4 1 4 CMT Quarterly budget and adequate resources to meet office needs and demands for effective service delivery

11 and 12 merged to produce new 11

11 Loss of funding from Central 4 3 12 CRR/11/15 3 3 9 CMT Quarterly Government and other bodies

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 2 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Risk Action Plan

Corporate/Department/Section/Unit/Project: All Departments

Date of Risk Review: 17th September 2016 Prepared by: RS Lawther/K Connolly

Risk Control Measure: CRR/1/15

Description: Potential failure to monitor, review and audit legislative requirements which could result in serious injury or loss of one or more lives due to council negligence Potential Outcomes:

One:  Risk assessments are not kept up to date – or a new risk is not identified  Lack of systematic maintenance programme  Lack of ongoing investment  Lack of strategy to deal with ageing stock of buildings  Buildings and equipment do not meet public H&S standards

Two: Potential fatalities and serious injuries

Three: Prosecution – fines for body corporate and/ or fines/imprisonment for individual(s)

Four: Claims Theme 1 Priorities – Community and Culture

 Foster a Customer (Citizen and Business) focused council, meeting the customer needs in an effective and efficient manner

Theme 3 Priorities - Place & Environment

 Create a positive, place to live work and visit and preserve the natural environment for the future  Deliver a high quality built environment with in an outstanding natural environment through planning and partnership with developers, builders, designers and the community and voluntary sectors

Theme 4 Priorities - Health & Wellbeing

 We will provide a clean, healthy environment maintaining parks and open spaces, manage street cleaning and collect bins from the 48,000 householders it will serve  We are committed to promoting safe healthy communities and active lifestyles, wellbeing and independence of people and communities  We will promote the provision of accessible high quality children’s play opportunities

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 3 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Theme 5 Priorities - Good Governance & Service

 Ensure service delivery is as good as it can be with appropriate resourcing and performance management and measurement to drive improvements whilst maximising efficiencies Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 3 Likelihood 2 Impact 4 Impact 4 Overall Rating 12 Overall Rating 8 Officer Risk Owner: Corporate Management Team Overall Responsibility: Corporate Management Team Target Date: Reviewed Quarterly Proposed Actions to deal with risk:

Existing Actions:

 Relevant and achievable Corporate Vision and Objectives produced  Effective and current business plans for all departments being produced and will be reviewed regularly  PR and marketing strategy in place  Effective recruiting and retention plans for correct professional and qualified staff, thorough induction and development procedures  Planned time-table of site surveys compiled and reviewed regularly for Council buildings, with remedial action scheduled as required  Identification, regular and on-going training of employees for risk management.  Regular and on-going training of relevant employees in Asbestos identification/management  Accident and Incident monitoring and reporting procedures in place  Corporate Health & Safety procedures in place to deal with operational risk issues such as Legionella, Asbestos and Fire  Fire Risk Assessments in place for all Council facilities  Health & Safety audits and risk assessments carried out  Management control systems in place  Training of staff in Health & Safety and risk assessment in place  Continued development and review of Corporate Health & Safety Management System, Policies and Procedures  Insurance review carried out of all Council buildings  Continuous review of legislative environment in conjunction with other Government bodies to inform estimates process and legislative requirements are met  Arrangements for the reporting of incidents, accidents and work based ill health in place  Display of Health and Safety information, tool box talks and awareness campaigns in place  Health & Safety Committee and sub committees established  PR plan developed to deal with serious incidents  Compliance with legislative/Codes of Practice updates/reviews  Codes of Conduct in place  Ongoing Specific training: DPA; FOI; Health and Safety, Corporate Manslaughter Legislation

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 4 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission  Child Protection Policy in place  Whistle Blowing Policy in place  Data Protection Policy in place  Audit plan for 2016-19 in place  Estate Strategy for L&CCC assets produced by October 2016

New Actions:

 Carbon Reduction Commitment Energy Efficiency Scheme (CRC) reduction plans  Review of policies to deal with operational issues such as Legionella, Asbestos and fire safety  Budgetary control on property income and expenditure  Planned Preventative Maintenance (PPM) Programme being reviewed  Regular inspection and maintenance contracts in some areas  Continued development & enhancement of current safety management system  Continue Health & Safety audits of safety management culture within the Council as part of rolling planned programme  Health and well-being support plan being developed  Risk Management process, procedure and training for assessors to be put in place  Employees consulted about Health and Safety issues through Safety Rep inspections, Safety Rep Meetings and reports to Health and Safety Committee  Arrangements for trained first aiders to be put in place  New web based health and safety recording, reporting, monitoring and auditing to be introduced  Health and Safety reports quarterly standing item at CMT  Horizon Scanning – CMT/Heads  Consultation timeline and mapping of legislation implementation

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 5 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission

Risk Action Plan

Corporate/Department/Section/Unit/Project: Corporate Services

Date of Risk Review: 9th September 2016 Prepared by: RS Lawther/ S McGurnaghan

Risk Control Measure: CRR/2/15

Description: Fraud and corruption

Potential Outcomes:

One: Do not have effective budgetary and internal control system in place

Two: Breakdown of Internal financial processes and controls which could lead to:

 Suppliers submit fraudulent invoices  Staff abuse systems for personal gain

Three: Failure to have a comprehensive risk based audit programme in place

Corporate Objective:

Theme 5 Priorities - Good Governance & Service

 Provide strong Governance with clear purpose and focus; and effective and  accountable decision-making

 Be an open, honest and accountable council with transparency about our spending and performance; we will publish regular, up-to-date and relevant information, with established channels for questions and feedback and information for residents, local businesses and voluntary organisations

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 2 Likelihood 1 Impact 4 Impact 4 Overall Rating 8 Overall Rating 4 Officer Risk Owner: Director of Corporate Services Overall Responsibility: Council Target Date: Reviewed Quarterly Proposed Actions to deal with risk:

Existing Actions

 Internal/External audit, fraud and corruption policy, whistleblowing policy in place  Prudential Code and Treasury Management Strategies in place

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 6 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission  Review and update as necessary policies and procedures ongoing  Monthly Management accounts to Corporate Services Committee  Monthly budgetary control meeting with Directors and HOS  Certificates of Assurance on Internal Control signed annually by Directors & HOS  Ensure that each Directorate has appropriate internal controls for the resources they manage  Ongoing development of finance policies, procedures and control measures  Internal and external audit review carried out  Audit plan for 2016-19 developed on a risk basis  Fraud and Corruption Policy amended

New Actions:  Review of Accounting Manual

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 7 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission

Risk Action Plan Corporate/Department/Section/Unit/Project: All Departments

Date of Risk Review: 18th September 2016 Prepared by: RS Lawther/K-A McKibbin

Risk Control Measure: CRR/3/15

Description: Loss of corporate image and reputation due to performance management culture not embedded within the Council, the outcome could led to legal action or sanction if the Council does not carry through performance initiatives

Potential Outcomes:

One: Leading to increased risk of damaging litigation

Two: Loss of reputation

Three: Loss of confidence of key stakeholders

Corporate Objective:

Theme 1 Priorities – Community and Culture

 Foster a Customer (Citizen and Business) focused council, meeting the customer needs in an effective and efficient manner

Theme 5 Priorities - Good Governance & Service

 Ensure service delivery is as good as it can be with appropriate resourcing and performance management and measurement to drive improvements whilst maximising efficiencies  Ensure we meet the needs of the community through an outcomes and ‘evidenced based approach’

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 2 Likelihood 1 Impact 3 Impact 3 Overall Rating 6 Overall Rating 3 Officer Risk Owner: Corporate Management Team Overall Responsibility: Council Target Date: Reviewed Quarterly Proposed Actions to deal with risk:

Mitigating Factors:

 Code of Conduct for Members and staff in place  Performance targets assigned from Local Government

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 8 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission  Lack of Performance Management information  Failure of Performance Management System

Existing Actions:

 Relevant and achievable Corporate Vision and Objectives in place  Effective business plans developed and will be reviewed regularly  2015/16 – 16 Performance Improvement Objectives agreed by Council and submitted to NI Audit Office  2016/17 – Performance Improvement Objectives agreed by Council and submitted to NI Audit Office  Corporate PR and Communications strategy in place  Effective recruiting and retention plans, thorough induction procedures in place  Implement management techniques to ensure that motivation and morale of staff remains high  Council Customer Care procedure in place  Amendments to standing orders when required  Induction training for elected members in place to inform them of their local government responsibilities  Performance Management reporting to Corporate Management Team  Regular meetings with Heads of Service and Directors  Performance Excellence Working Group  Local Government Performance Improvement Sub Group (Chaired By LCCC CE) established  Internal and External Audit programme produced  Performance Improvement Plan developed and being implemented  Performance Policy in place  Member of APSE Performance Networks  Bespoke Performance Management System purchased and being implemented  Training provided to all relevant staff on new Performance Management System

New Actions:

 Human Resources support for organisational change, workforce development and developing leadership capacity being developed under workforce planning to mitigate this risk  Benchmarking at Service Level  Achievement of Quality Accreditations

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 9 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Risk Action Plan

Corporate/Department/Section/Unit/Project: Chief Executives Office

Date of Risk Review: 18th September 2016 Prepared by: RS Lawther/K Connolly

Risk Control Measure: CRR/4/15

Risk Description: The arrangements in place for civil contingencies and business continuity are not effective. Potential Outcomes:

One: Ineffective management of major emergencies affecting Council services and communities in Lisburn and Castlereagh in response to a major emergency

Two: Incident and recovery phase of an emergency lead to greater inconvenience and hardship and a longer timescale for return to normal

Three: Failure of IT systems

Four: Loss of site due to fire or other severe incident

Five: Severe weather; high/low temperatures, snow

Six: Fuel strike/shortages

Seven: Major power failure and other utilities at Council buildings

Eight: Effects of pandemics

Nine: Loss of key personnel

Ten: Contractor /supplier failure

Eleven: Security Incident

Twelve: Flooding Corporate Objective:

Theme 5 Priorities - Good Governance & Service

 Provide strong Governance with clear purpose and focus; and effective and accountable decision-making  Focus on affordability and financial planning to provide financial assurance and accountability by driving down costs and waste, ensuring efficiency not avoidance and finding ways to increase income opportunities.  Be an open, honest and accountable council with transparency about our spending and performance; we will publish regular, up-to-

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 10 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission date and relevant information, with established channels for questions and feedback and information for residents, local businesses and voluntary organisations  To provide value for money services that will enhance the quality of life to our residents and target local needs

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 4 Likelihood 3 Impact 3 Impact 3 Overall Rating 12 Overall Rating 9 Officer Risk Owner: BCM/EP Officer Name of Responsible Officer: Chief Executive Target Date: Reviewed Quarterly Proposed Actions to deal with risk:

Mitigating Factors:

 Predecessor Councils had plans in place to deal with EP and BCM  Legislation has not yet been enacted for Emergency planning  Potential failure of ICT Systems that are outside Council control

Existing Actions:

 Emergency Plan in place  Having appropriate committee/council approval for these plan  Appropriate Insurance in place  Management teams continue to review risks and take action to mitigate them where possible  Emergency Planning Implementation Group (EPIG) formed and ongoing planning and development of arrangements  Regional and sub-regional Civil Contingency arrangements have been reviewed and in place  Ongoing review of NI local governments role and responsibilities regarding Civil Contingencies  Annual audit to ensure adequacy and extent of insurance programme for Councils activity and exposure; EP and BCM arrangements  Emergency Planning information provided on Council website  Community resilience program in development  Intranet development for Business Continuity and Emergency Planning information guidance to local business on business continuity planning ongoing  Full debrief of recent ICT failures to determine learning out comes and resilience planning  BCP with risk management processes aligned  Corporate Business Continuity Plan agreed by CMT  Business Impact Analysis process carried out across all Departments  BCP exercise for CMT took place in May  Regularly review plans every 6 months to take considerations of changing external influences

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 Imbed EP and BCM into Council by training and awareness by March 17  Communicate to staff EP and BC plans  Cross train staff to enable them to cover other posts with particular attention to critical services  Establish organised and comprehensive communication on both a top- down and bottom up basis in respect of management/employees e.g. Quarterly Corporate Management Meetings, Monthly Team Meetings and Employee Consultative Committee, Staff bulletins  Test the EP and BCP - programme of departmental BC and EP exercises each year to being developed by October 16  Update Disaster Recovery plans post migration to new data centre and implementation of server virtualisation and data storage solutions  Specific ICT BCP being produced  Pandemic flu plan to be reviewed by June 16 and exercised by January 2017  Flooding emergency plan being developed in conjunction with statutory drainage agencies – September 16  Development of Departmental Business Continuity Plans by November 16

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Risk Action Plan

Corporate/Department/Section/Unit/Project: Economic Development

Date of Risk Review: 19th September 2016 Prepared by: RS Lawther/P McCormick

Risk Control Measure: CRR/5/15

Description: Failure to deliver programmes and projects that economically benefit the Council area

Potential Outcomes:

One: Unable to meet government and local economic development targets

Two: Bad press

Three: Shortfall on budget and potential staff cuts/service reduction

Four: Potential Litigation

Corporate Objective:

Theme 1 Priorities – Community & Culture

 Create a sense of Place by designing and delivering a holistic organisation between Lisburn & Castlereagh, urban and rural areas with an emphasis on the customer and customer experience

 Foster a Customer (Citizen and Business) focused council, meeting the customer needs in an effective and efficient manner

 Provide a council which effectively engages with stakeholders to understand critical issues, making the council part of the community

 Lead on Community Planning to develop and implement a shared vision for the area

 Promote and nurture a shared civic identity process to strengthen personal, social and economic wellbeing and to enhance the lives of people who work, live and socialise within the council area

 Working in partnership, maximise the economic contribution into the Council area by attracting spend from inward investors and visitors as well as residents

Theme 2 Priorities – Strong and sustainable economy and Growth

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 13 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission  Support Economic Development through working with local businesses and their representative organisations to help identify and address issues and to capitalize on the opportunities that the coming years bring

 Through planning/land use/local development planning, identify and safeguard adequate land for economic and industry development

 Engage with regional, national and European organisations to attract and optimise funding opportunities to support the area

 Deliver Regeneration projects that are in the pipeline including the Castlereagh Urban Integrated Development Framework and the Lisburn City Centre Master Plan

 Enhance Business Development by profiling the area as a place to visit and do business, encouraging social enterprise. Utilising our strategic location we will work with partners to develop initiatives that attract investment, business, careers and jobs to the region both within the City Centre and borough rural areas. Businesses have an important role to play in maintaining the vibrancy and distinctiveness of local areas, making them attractive for residents and visitors and are a key factor in the quality of life for residents.

 Develop a sustainable Rural Economic Development plan with our strategic partners. This will be achieved through the expansion & promotion of the district’s indigenous rural business sectors with a coordinated focus on entrepreneurship, innovation and the development of new market opportunities. Rural Development initiatives will also continue to showcase the region’s rich rural heritage, develop the area’s rural tourism sector and generate additional visitor spend through the exploitation of the council district’s strategic location.

 Develop, market and implement a Tourism Strategy including a major events strategy to take advantage of Northern Ireland’s most high profile events which take place in the new council area.

 Develop an Economic Vision that will include initiatives aimed at upskilling in the industry sectors and develop professional services; using Council’s enhanced powers to expand Business Renewal and Neighbourhood Renewal Funding and the delivery with Strategic partners programmes both within the City Centre and rural areas to deliver positive change and ensure successful regeneration.

Theme 3 Priorities – Place & Environment

 Create a positive, place to live work and visit and preserve the natural environment for the future

 Promote sustainable development though planning, policy and action

 Develop and implement strategies to retain the unique character of our

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 14 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission centres, villages and towns through planning/land use/local development planning

 Deliver a high quality built environment within an outstanding natural environment through planning and partnership with developers, builders, designers and the community and voluntary sectors

Theme 4 Priorities – Health and Well-being

 We are committed to promoting safe healthy communities and active lifestyles, wellbeing and independence of people and communities

 We will actively promote a more physically active and healthier community

 We will work with Partners with the aim of improving health and well-being for residents

Theme 5 Priorities - Good Governance & Service

 Ensure service delivery is as good as it can be with appropriate resourcing and performance management and measurement to drive improvements whilst maximising efficiencies

 Ensure we meet the needs of the community through an outcomes and “evidence based approach”

 Focus on affordability and financial planning to provide financial assurance and accountability by driving down costs and waste; ensuring efficiency not avoidance and finding ways to increase income opportunities

 Communicate effectively both internally and externally while harnessing technology to improve how we engage with all stakeholders

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 3 Likelihood 2 Impact 4 Impact 4 Overall Rating 12 Overall Rating 8 Officer Risk Owner: Lead Head of Economic Development Overall Responsibility: Corporate Management Team Target Date: Reviewed Quarterly Proposed Actions to deal with risk:

Existing Actions  Project risk assessment. Project risks determined to assess the acceptable and unacceptable levels of risk the Council is willing to take on projects. Unacceptable project risks which cannot be mitigated to acceptable levels will not be undertaken.  Project Management in place.  Ensure Event Management Plan, Risk Assessments and insurance are acceptable to Council H&S Standards.  Maintenance of flexible project specific risk registers for major capital projects.

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 15 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission New Actions:  The Council will monitor the impact of BREXIT on the potential drawdown of European Union funding and will assess the acceptable and unacceptable levels of risk that the Council would be willing to take on in terms of drawing down future funding opportunities from affected sources of European Union funded streams.

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Risk Action Plan

Corporate/Department/Section/Unit/Project: Chief Executive Office

Date of Risk Review: 27th September 2016 Prepared by: RS Lawther/ C McWhirter

Risk Control Measure: CRR/6/15

Risk Description: Failure to deliver Community Plan in legislated timescale and failure to demonstrate inclusivity in the delivery of Community Plan including Partnerships not managed effectively and key service outcomes not achieved

Corporate Objective:

Theme 1 Priorities – Community and Culture

 Provide a council which effectively engages with stakeholders to understand critical issues, making the council part of the community  Lead on Community Planning to develop and implement a shared vision for the area  Support and promote Community Development and nurture a shared civic identity, ensuring people-centred services that enables our community/ voluntary sector to play an active role in shaping and developing their communities and place  Promote and nurture a shared civic identity process to strengthen personal, social and economic wellbeing and to enhance the lives of people who work, live and socialise within the council area

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 3 Likelihood 2 Impact 4 Impact 4 Overall Rating 12 Overall Rating 8 Officer Risk Owner: Community Planning Manager Name of Responsible Officer: CMT Target Date: Reviewed Monthly Proposed Actions to deal with risk:

Mitigating Factors:

 Inadequate budget to facilitate service delivery when the scope of the service is unknown  Contrary objectives of statutory partners  People failing to engage  Partners only engaging with certain groups of people

Existing Actions:

 Partnership workshops started 15 November 2015

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 17 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission  Officer workshops started in March 15  Budget allocated and in place  Work-plan updated new version going to G&A in September 16  Regular reporting to G&A and CMT- ongoing  Development of Community Engagement Strategy completed  Liaison with key customer groupings - ongoing  Hosted community engagement events in July & August  Hosted Community Planning conference in September 15  NISRA statistician in post from Oct 15  Produced feedback from community consultations for G&A and community  Formalised the Strategic Partnership  Agreed data sharing working group in place  Regular meetings with Chief Executive, CMT and statutory and support partners – ongoing  Thematic groups being held in July/August 2016  Business Case produced for Council agreement to sign up for Datahub and recruitment of GIS officer.

New Actions:

 Liaise with Equality Officer, Good Relations Officer and all other Council Departments, partner agencies and G&A to ensure inclusivity - ongoing  Develop Single Outcome Agreement Delivery Plans – April 17

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Risk Action Plan

Corporate/Department/Section/Unit/Project: Environmental Services

Date of Risk Review: 11th September 2016 Prepared by: RS Lawther/A Reynolds

Risk Control Measure: CRR/7/15

Description: Failure of Leachate Management Systems at former Landfill Sites Potential outcomes:

One: Failure of Containment System

Two: Withdrawal of insurance Cover for pre-existing condition

Three: Refusal of NIW to accept Leachate for treatment at NIW treatment works

Four: Fines due to failure to comply with requirements of retrospective application of Article 13 of Landfill Directive

Five: Failure to secure adequate level of resources to carry out functions and services

Six: To avoid any penalties, the Council must incur additional landfill site engineering and aftercare costs; at this stage, no reliable estimate can be made of the additional costs but they are likely to be significant.

Corporate Objective:

Theme 3 Priorities - Place & Environment

 Increase rates of recycling, reduce energy consumption and promote sustainable outcomes by working with residents and businesses

Theme 4 Priorities - Health & Wellbeing

 We are committed to promoting safe healthy communities and active lifestyles, wellbeing and independence of people and communities

Theme 5 Priorities - Good Governance & Service

 Ensure service delivery is as good as it can be with appropriate resourcing and performance management and

 to drive improvements whilst maximising efficiencies Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 3 Likelihood 2 Impact 4 Impact 4

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 19 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Overall Rating 12 Overall Rating 8 Officer Risk Owner: Director of Environmental Services Overall Responsibility: Environmental Services Committee Target Date: Reviewed Monthly Proposed Actions to deal with risk:

Mitigating Factors:

 Consultants employed to undertake closure plan for Drumlough and Moss Road closed landfill site  Review annually and continue to negotiate with Insurance Company

Existing Actions:

 Reduce Leachate levels, monitoring regime in place and results need to be discussed with Council insurance company as part of annual review procedures  Closure Plan for Drumlough has been completed and submitted to NIEA for consideration.  Work on the perimeter drain at Drumlough to assess flows which will help inform the feasibility of installation of reed beds to treat leachate.  Consultants to continue with monitoring and technical work to support development of final closure plan,  Review the provision for aftercare costs once the consultants have completed the final closure plan, now expected to be ready in Autumn 2016  Disclosure in the annual financial statements of the issue, provision and contingent liability  A PR plan has been produced to mitigate against adverse publicity  Closure plan for Moss Road not yet in draft as statutory works still ongoing

New Actions:

 New contract advertised at end of contract to continue leachate removal and to investigate option of leachate removal over 100m3 max by NI Water.  Keep resources under review and secure any necessary additional resources during estimates process  Research further on site treatment methods,

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 20 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Risk Action Plan

Corporate/Department/Section/Unit/Project: Environmental Services

Date of Risk Review: 17th September 2016 Prepared by: RS Lawther/A Reynolds

Risk Control Measure: CRR/8/15

Description: Waste Management

Potential outcomes:

One: Failure to meet waste management targets

Two: Failure to correctly dispose of waste

Three: Requirement for Contingent Liability provision in relation to the Arc21 Residual Waste Treatment Project

Corporate Objective:

Theme 3 Priorities - Place & Environment

 Increase rates of recycling, reduce energy consumption and promote sustainable outcomes by working with residents and businesses  Produce a Council Sustainable Development strategy which takes account of Economic, Environmental and Social indicators across the new area

Theme 4 Priorities - Health & Wellbeing

 We will provide a clean, healthy environment maintaining parks and open spaces, manage street cleaning and collect bins from the 48,000 householders it will serve

 We are committed to promoting safe healthy communities and active lifestyles, wellbeing and independence of people and communities

Theme 5 Priorities - Good Governance & Service

 Ensure service delivery is as good as it can be with appropriate resourcing and performance management and measurement to drive improvements whilst maximising efficiencies

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 4 Likelihood 3 Impact 4 Impact 4 Overall Rating 16 Overall Rating 12 Officer Risk Owner: Director of Environmental Services Overall Responsibility: Environmental Committee Target Date: Reviewed Monthly

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 21 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Proposed Actions to deal with risk:

Mitigating Factors:

 Procurement process and rules  Availability of resources

Existing Actions:

 Through ARC 21 Joint Committee, ensure the implementation of the Waste Management Plan  Monitor waste management performance against targets at three monthly intervals  Ensure implementation of waste management legislation, guidance and best practice  Development and implementation of waste diversion schemes and initiatives  Targeted communications, initiatives and educational programs  Augment waste management activities with Elected Member meetings and briefings  Waste activities operated within regulatory framework  Effective procurement of waste management operations, activities, and contract management  Acting as appropriate with regard to notifications received from Northern Ireland Environment Agency regarding enforcement action being taken against waste operators  ARC21 to continue with management/governance of the RWTP in accordance with its terms of reference and ensure that due process is exercised at all times with the necessary approvals being obtained  Waste Harmonisation & Development Project Steering Group has been established and has draft work streams in place to address key harmonisation and development projects  Arc21 to manage the RWTP, PAC process with due regard to management/governance of the RWTP in accordance with its terms of reference and ensure that due process is exercised at all times with the necessary approvals being obtained and ensure that contingency provision is considered in order to mitigate the Councils exposure to possible collapse of the process

New Actions:

 Through ARC 21 Joint Committee, ensure that the Waste Management Plan is maintained, reviewed and updated as Councils and others require and in line with regulatory framework  Keep up-to-date with changes in relevant legislation and impact on waste management operations and activities  Maximise waste diversion opportunities at kerbside and through Household Recycling Centres and Bring Site locations  The Council to continue to make provision for any potential contingent liability risk within its reserves  Review operational business case and value for money of residual waste provision  Review project risk register for Residual Waste Treatment Plant

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Risk Action Plan

Corporate/Department/Section/Unit/Project: Development and Planning Directorate

Date of Risk Review: 26th September 2016 Prepared by: RS Lawther/B Elliot

Risk Control Measure: CRR/9/15

Description: Planning and area planning Potential Outcomes:

One: Failure to deliver planning in partnership with key stakeholders

Two: Develop good service delivery and process improvements  Technical/IT problems and process issues  Reduced operational performance and negative impact on performance targets due to performance of Planning Portal  Lack of procedural guidance and control mechanisms to manage system operations  Problems with public access to Planning Portal NI  Potential failure to meet statutory obligations  Potential failure to deliver Customer Service in terms of proper handling of Complaints, FOI/EIR requests and General correspondence

Three: Potential failure to secure the orderly and consistent development of land by:  Failing to deliver the LCCC Local Development Plan  Failing to determine planning applications  Failing to regulate unauthorized development  Failing to reduce legacy applications

Corporate Objective:

Theme 1 Priorities – Community and Culture

 Provide a council which effectively engages with stakeholders to understand critical issues, making the council part of the community  Lead on Community Planning to develop and implement a shared vision for the area  Support and promote Community Development and nurture a shared civic identity, ensuring people-centred services that enables our community/ voluntary sector to play an active role in shaping and developing their communities and place  Promote and nurture a shared civic identity process to strengthen personal, social and economic wellbeing and to enhance the lives of people who work, live and socialise within the council area

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 23 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission

Theme 2 Priorities - Strong and sustainable economy and Growth

 Through Planning/ Land use/ local development Planning, identify and safeguard adequate land for economic and industry development  Engage with regional, national and European organisations to attract and optimise funding opportunities to support the area  Deliver Regeneration projects that are in the pipeline including the Castlereagh Urban Integrated Development Framework and the Lisburn city Centre Master Plan  Develop a sustainable Rural Economic Development plan with our strategic partners. This will be achieved through the expansion & promotion of the district’s indigenous rural business sectors with a coordinated focus on entrepreneurship, innovation and the development of new market opportunities  Rural Development initiatives will also continue to showcase the region’s rich rural heritage, develop the area’s rural tourism sector and generate additional visitor spend through the exploitation of the council district’s strategic location

Theme 3 Priorities – Place & Environment

 Develop and deliver an Area Plan that maximizes the assets and advantages of our unique , regionally valuable City  Create a positive, place to live work and visit and preserve the natural environment for the future  Promote sustainable development though planning, policy and action  Develop and implement strategies to retain the unique character of our centres, villages and towns through Planning / land use / local development planning  Deliver a high quality built environment with in an outstanding natural environment through planning and partnership with community and voluntary sectors  Strengthen civic pride through common sense policies, which strike a balance between making the area accessible to all and protecting our environment and management of waste  Produce a Council Sustainable Development strategy which takes account of Economic, Environmental and Social indicators across the new area

Theme 4 Priorities - Health & Wellbeing

 We will provide a clean, healthy environment maintaining parks and open spaces, manage street cleaning and collect bins from the 48,000 householders it will serve

Theme 5 Priorities - Good Governance & Service

 Ensure service delivery is as good as it can be with appropriate resourcing and performance management and measurement to drive improvements whilst maximising efficiencies

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 24 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 3 Likelihood 2 Impact 4 Impact 4 Overall Rating 12 Overall Rating 8 Officer Risk Owner: Senior Planning Officer Overall Responsibility: Lead Head of Service for Planning and Building Control Target Date: Reviewed Quarterly Proposed Actions to deal with risk:

Mitigating Factors:  Strategies developed (such as the Planning Enforcement Strategy) to deal with particular areas of concern  Fully utilize Departmental Practice Notes/Guidance for agents/public/stakeholders on new elements of the Development Plan and Development Management systems  Protocol for operation of planning committee and Scheme of Delegation  Ultimate responsibility for functionality of Planning Portal NI up to 2019 rests with DOE

Existing Actions  Active Management of the Local Development Plan process at key stages of preparation in accordance with the prepared Timetable  Active Management of the Development Management caseload including meeting statutory targets and monitoring the processing of applications  Active Management of Enforcement caseload including meeting statutory targets and monitoring cases  Active involvement in stakeholder engagement across Council, with Members through Planning Committee, and externally through PADs  Ongoing service integration across other Council units including Building Control, Continue logging I.T issues in accordance with established procedures  When required escalate issues that are not being resolved to the Council’s satisfaction  Raise issues through appropriate channels as necessary e.g. Working Group Forums and Chief Executive’s meetings  Environmental Health and Economic Development

New Actions:

 To progress to next key stage of the Local Development Plan following preparatory stage  To deal with the potential increase in the number of applications by ensuring adequate resources are available  Meet key performance indicators and develop monthly reporting mechanisms to review performance and enhance service delivery  Publication of the Statement of Community Involvement outlining opportunity for stakeholder participation  Review of Protocol for operation of planning committee and Scheme of Delegation as required  Explore with other Council’s the future operational I.T requirements post 2019 (Planning Portal in place for 4 years post RPA)

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 25 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission  Consider introduction of new procedures to assist with improved service delivery

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 26 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission

Risk Action Plan

Corporate/Department/Section/Unit/Project:

Date of Risk Review: 5th September 2016 Prepared by: RS Lawther/ L Scott

Risk Control Measure: CRR/10/15

Description: Failure of ICT Systems

Potential Outcomes:

One: ICT strategy fails to support the organisation moving forward

Two:Systems are not successfully integrated with one and other

Three: Drain on resources as staff work around the systems

Four: Over reliance on outsourced provision

Corporate Objective:

Theme 5 Priorities - Good Governance & Service

 Create a new Organisation which will embrace not just a merger but a holistic organisation with an emphasis on all our customers and customer experience  Engage, develop and empower our staff, providing in equal measure support and challenge to provide the best and most effective staff in delivery of services  Provide staff with the skills and knowledge and the attitudes and behaviours that support the service and the authority  Ensure service delivery is as good as it can be with appropriate resourcing and performance management and measurement to drive improvements whilst maximising efficiencies  Communicate effectively both internally and externally while harnessing technology to improve how we engage with all stakeholders

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 4 Likelihood 2 Impact 4 Impact 4 Overall Rating 16 Overall Rating 8 Officer Risk Owner: Director of Corporate Services Overall Responsibility: Corporate Management Team Target Date: Reviewed Monthly

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 27 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Existing Actions:

 Customer Feedback Process in place  Business Continuity Management developed  Network design resilience being developed  One year detailed ICT plan in place  Spending complete for renewal/upgrade of highest risk items, in particular firewalls, core servers/switches and external bandwidth

New Actions:

 Implementation of Organisational design a priority to define roles and responsibilities of staff  Existing ICT budget spend focused on dealing with critical issues, capital and revenue budget resource provided in current year to address major issues, medium term financial plan investment programme in place for subsequent years  Develop a three year IT Strategy  Storage Area Network Capacity maximized through effective archiving solution  Key business applications from third party providers need to be reviewed by Heads of Service to ensure the Council is obtaining the most effective and efficient service  Electronic data disposal policy needs to be implemented  Upskill ICT staff to become more self-sufficient at dealing with issues

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Risk Action Plan

Corporate/Department/Section/Unit/Project: All Departments

Date of Risk Review: 26th September 2016 Prepared by: RS Lawther

Risk Control Measure: CRR/11/15

Description: Loss of Income Streams

Potential Outcome:

One: Significant reduction of income streams and external funding, or significant change in project or service development resulting in insufficient funding in place

Two: Collapse in regional markets leading to loss of income

Three: Low economic growth or recession reduces income and impacts on balancing the budget – significant change and financial savings required

Four: Under-utilisation of assets

Five: Loss of EU funding for projects

Six: New policies and regulations place a major financial burden on the Council

Seven: Change in monetary direction of National and Regional Government

Corporate Objective:

Theme 1 Priorities – Community and Culture

 Working in partnership, maximize the economic contribution into the Council area by attracting spend from inward investors and visitors as well as residents

Theme 2 Priorities - Strong and sustainable economy and Growth

 Through Planning/ Land use/ local development Planning, identify and safeguard adequate land for economic and industry development  Engage with regional, national and European organisations to attract and optimise funding opportunities to support the area  Deliver Regeneration projects that are in the pipeline including the Castlereagh Urban Integrated Development Framework and the Lisburn city Centre Master Plan  Develop a sustainable Rural Economic Development plan with our strategic partners. This will be achieved through the expansion & promotion of the district’s indigenous rural business sectors with a coordinated focus on

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 29 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission entrepreneurship, innovation and the development of new market opportunities  Rural Development initiatives will also continue to showcase the region’s rich rural heritage, develop the area’s rural tourism sector and generate additional visitor spend through the exploitation of the council district’s strategic location

Theme 3 Priorities - Place & Environment

 Create a positive, place to live work and visit and preserve the natural environment for the future  Deliver a high quality built environment with in an outstanding natural environment through planning and partnership with developers, builders, designers and the community and voluntary sectors

Theme 4 Priorities - Health & Wellbeing

 We are committed, both directly and in partnership with local organisations and clubs, to encouraging local residents to participate in regular physical activity and sport including through provision of quality facilities as well as pathways to support sports development  We will actively promote a more physically active and healthier community  We will work with Partners with the aim of improving health and well-being for residents

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 4 Likelihood 3 Impact 3 Impact 3 Overall Rating 12 Overall Rating 9 Officer Risk Owner: Corporate Management Team Overall Responsibility: Council Target Date: Reviewed Quarterly Proposed Actions to deal with risk:

Mitigating Factors:

 National and Local Government policy outside the influence of Council  Government welfare reform could potentially have a disproportionate impact on the poorest and most vulnerable members of society  Decline in income streams lends to insufficient funds to maintain current service levels and therefore erosion of reserves and savings required  Income reduced because of economic downturn e.g. Planning application, Building Control and Car Park income

Existing Actions:

 DCS taking report to CS Committee outlining EU funding which may be removed. Alternative sources of income may have to be sourced to fund these projects or ultimately if UK and Local Government do not provide funding will have to be factored into the District rate.  Protocol for application and approval of grants and external contributions

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 30 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission  Implementation of development plan  Implementation of Community Plan  Holistic approach to economic development and regeneration being pursued  Maximise funding levered in from external sources to support economic development  Actions to improve current income streams  Actions to attract new income streams  Targeted Investment in specific areas/initiatives  Continuous Treasury Management to assess the Council’s existing investments and consider future opportunities available  Continuous improvement of information available from Financial Management System  Monthly review of income streams via budget monitoring and quarterly review by CMT to include usage figures for services that are most effected by the current economic climate (through reduced income streams) so that trends can be identified  Five year budget to improve forecasting and planning in place  Quarterly report to Committees of significant variances from the approved budget  Development of a five year Rates Strategy that will examine income generation both within and outside of the Council. It will also consider the sustainability of income streams over the next five years

New Actions:

 Estates strategy/Management plan being produced which could produce efficiencies or effectiveness of services  Ongoing Capital Programme review of major schemes  Risk assessment to be included in all project planning

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 31 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Risk Action Plan

Corporate/Department/Section/Unit/Project: All Departments

Date of Risk Review: 4th September 2016 Prepared by: RS Lawther/M Finney

Risk Control Measure: CRR/12/15

Description: Risk of a loss of data

Potential Outcomes:

One: Sensitive and/or personal data is sent to the incorrect recipient

Two: Sensitive and/or personal data is not kept securely, and potentially lost

Three: Failure to adequately structure and protect data in shared filing to reflect various organisational changes

Four: Communication on social media which has an adverse effect on Council reputation

Five: Malicious or non-malicious loss of critical data

Corporate Objective:

Theme 5 Priorities - Good Governance & Service

 Ensure service delivery is as good as it can be with appropriate resourcing and performance management and measurement to drive improvements whilst maximising efficiencies externally while harnessing technology to improve how we engage with all stakeholders  Be an open, honest and accountable council with transparency about our spending and performance; we will publish regular, up-to-date and relevant information, with established channels for questions and feedback and information for residents, local businesses and voluntary organisations

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 3 Likelihood 2 Impact 4 Impact 4 Overall Rating 12 Overall Rating 8 Officer Risk Owner: Director of Corporate Services Overall Responsibility: Corporate Management Team Target Date: Reviewed Quarterly Proposed Actions to deal with risk:

Existing Actions

 ICT service plans continue to address data security issues relative to new ways of

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 32 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission working  Regularly remind all managers and employees of their responsibilities for the use of and security of data  Avoid using mobile devices to store or process sensitive or personal data  Encrypt laptops and data sticks when they are used to store or process sensitive or personal data  Proper disposal of confidential waste in place  Data Protection Policy in place  Freedom of Information Publication Scheme in place

New Actions:

 Develop protocol for use of social media for staff  Develop a corporate index of databases maintained for use by Service areas  Introduction of a single corporate register of the data held by the Council stating who is responsible for collecting and sharing the information. Categorised by use type, e.g. operational/performance/knowledge. This would reduce duplication.  Establish data sharing protocols with partners

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 33 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Risk Action Plan

Corporate/Department/Section/Unit/Project: All Departments

Date of Risk Review: 3rd September 2016 Prepared by: RS Lawther/L Scott

Risk Control Measure: CRR/13/15

Description: Failure of the security of IT systems Potential Outcomes:

One: Equipment loss or theft could lead to the organisation being compromised and / or fined by the Information commissioner

Two: Shared filing is not fully owned / managed by the business and sensitive data may be accessible to those who should not be able to access it and could be leaked / used inappropriately

Three: Malicious Cyber-attack

Four: Non-malicious action by employee which could introduce viruses into IT system

Five: Major reputational damage which leads to loss of public confidence in the Council

Six: Inability to operate key business processes

Corporate Objective:

Theme 5 Priorities - Good Governance & Service

 Ensure service delivery is as good as it can be with appropriate resourcing and performance management and measurement to drive improvements whilst maximising efficiencies externally while harnessing technology to improve how we engage with all stakeholders  Be an open, honest and accountable council with transparency about our spending and performance; we will publish regular, up-to-date and relevant information, with established channels for questions and feedback and information for residents, local businesses and voluntary organisations

Initial Risk Evaluation: Residual Risk Evaluation: Likelihood 4 Likelihood 3 Impact 4 Impact 4 Overall Rating 16 Overall Rating 12 Officer Risk Owner: Director of Corporate Services Overall Responsibility: Corporate Management Team Target Date: Reviewed Monthly

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 34 - Lisburn & Castlereagh City Council Corporate Risk Register Version 1.3 Restricted - Not to be Reproduced without Permission Proposed Actions to deal with risk:

Existing Actions

 ICT service plans continue to address data security issues relative to new ways of working  Regularly remind all managers and employees of their responsibilities for the use of and security of IT systems  Encrypt laptops and data sticks when they are used to store or process sensitive or personal data  Use of security software on all mobile devices e.g. Airwatch

New Actions:

 Develop a corporate index of databases maintained for use by Service areas  Introduction of a single corporate register of the data held by the Council stating who is responsible for collecting and sharing the information. Categorised by use type, e.g. operational/performance/knowledge. This would reduce duplication.  Establish data sharing protocols with partners  Develop Corporate use of GIS  Complete review of IT Security Policy including Process, Procedure and Staff Awareness Training  Audit of IT security within the organisation and report to CMT  Investigate a host/intrusion prevention system

O:\Corporate Services\Members Services\LCCC\Committees\Governance and Audit\2016\11.10.16\Main Report\Appendix 1 - CCR.doc 06/10/2016 10:37 - 35 - Appendix 2 Monthly Budget Report 04/10/2016 15:00

Current Budget for Annual YTD Total Variance Act/Comm Month Budget Budget Act/Comm to date 2 Governance & Audit

0852 Community Planning Expenditure 0010 Salaries 4,848 4,848 58,178 29,089 29,086 -3 1370 Office Equipment 0 63 750 375 0 -375 2140 Travel & Subsistence 0 83 1,000 500 73 -427 3000 Publications 0 83 1,000 500 662 162 3004 Room Charges 1,856 417 5,000 2,500 4,420 1,920 3154 Postage 0 83 1,000 500 49 -451 3186 Photocopying 0 42 500 250 284 34 3188 Telephones 0 125 1,500 750 0 -750 3496 Consultants 410 0 71,932 17,983 2,799 -15,184 ------Totals For Expenditure 7,113 5,744 140,860 52,447 37,373 -15,073

======Total For 0852 Community Planning 7,113 5,744 140,860 52,447 37,373 -15,073

52446.887113.3337373.495743.98-15073.39140860

3614 Staff Conferences Expenditure 0100 Conferences & Courses 15 219 2,630 1,315 1,054 -261 ------Totals For Expenditure 15 219 2,630 1,315 1,054 -261

======Total For 3614 Staff Conferences 15 219 2,630 1,315 1,054 -261

Monthly Budget Report by Detail 16.1.100.53 Page 1 of 4 Monthly Budget Report 04/10/2016 15:00

Current Budget for Annual YTD Total Variance Act/Comm Month Budget Budget Act/Comm to date

1315.0215.451054.08219.17-260.942630

3804 Corporate Management/Cost Expenditure 0190 Membership - outside bodies 0 0 725 725 185 -540 3274 Continuous Improve./Strategy Planning 223 417 5,000 2,500 860 -1,640 3276 RPA / Modernisation Agenda 0 1,667 20,000 10,000 7,960 -2,040 ------Totals For Expenditure 223 2,083 25,725 13,225 9,005 -4,220

======Total For 3804 Corporate Management/Cost 223 2,083 25,725 13,225 9,005 -4,220

13224.73222.969004.822083.33-4219.9125724.75

4602 Pensions Cost Expenditure 0200 Pensions 1,958 312 3,740 1,870 1,958 88 ------Totals For Expenditure 1,958 312 3,740 1,870 1,958 88

======Total For 4602 Pensions Cost 1,958 312 3,740 1,870 1,958 88

1870.021958.36311.6788.343740

3828 Internal Audit Expenditure

Monthly Budget Report by Detail 16.1.100.53 Page 2 of 4 Monthly Budget Report 04/10/2016 15:00

Current Budget for Annual YTD Total Variance Act/Comm Month Budget Budget Act/Comm to date 0010 Salaries 6,770 9,200 110,400 55,200 41,731 -13,469 2140 Travel & Subsistence 16 113 1,400 720 58 -662 3000 Publications 0 13 160 80 0 -80 3004 Room Charges 0 24 250 105 0 -105 3154 Postage 0 8 90 45 1 -44 3182 Printing 69 32 380 190 108 -82 3188 Telephones 0 13 150 75 49 -26 3502 Audit Fees - Internal Audit (Capita) 0 1,333 16,000 8,000 5,040 -2,960 3618 Risk Management Initiative 0 33 400 200 0 -200 3710 Capital Allocation 0 -88 -1,060 -530 0 530 4060 Agency Costs 1,530 3,500 22,000 12,500 11,456 -1,044 4820 Assoc. Local Govt. Auditors 0 11 130 65 0 -65 ------Totals For Expenditure 8,384 14,192 150,300 76,650 58,443 -18,207

======Total For 3828 Internal Audit 8,384 14,192 150,300 76,650 58,443 -18,207

3834 Chief Executive's Office Expenditure 0010 Salaries 20,838 26,512 318,140 159,069 125,389 -33,681 0015 Transition Team Salaries 3,676 5,272 78,200 46,560 43,254 -3,306 1370 Office Equipment 0 83 1,000 500 38 -462 2140 Travel & Subsistence 81 417 5,000 2,500 1,566 -934 3000 Publications 153 123 1,480 740 580 -159 3004 Room Charges 507 375 4,500 2,250 1,365 -885 3032 Public Relations 0 333 4,000 2,000 0 -2,000 3074 Insurance All Other 0 0 11,950 11,950 10,836 -1,114 3154 Postage 17 33 400 200 97 -103 3178 Stationery 90 359 4,200 2,045 1,340 -705 3186 Photocopying 666 225 2,700 1,350 1,889 539 3188 Telephones 7 100 1,200 600 354 -246 3490 Legal Fees -4,473 1,250 15,000 7,500 0 -7,500

Monthly Budget Report by Detail 16.1.100.53 Page 3 of 4 Monthly Budget Report 04/10/2016 15:00

Current Budget for Annual YTD Total Variance Act/Comm Month Budget Budget Act/Comm to date 3710 Capital Allocation 0 0 -1,830 0 0 0 4060 Agency Costs 826 2,300 23,000 9,200 11,894 2,694 ------Totals For Expenditure 22,387 37,383 468,940 246,465 198,602 -47,863

======Total For 3834 Chief Executive's Office 22,387 37,383 468,940 246,465 198,602 -47,863

323114.4730771.05257045.2151574.26-66069.26619240

======Totals For Governance & Audit 40,081 59,932 792,195 391,971 306,436 -85,535

Monthly Budget Report by Detail 16.1.100.53 Page 4 of 4 Appendix 3

LCCC ROLLING YEAR ABSENCE FIGURES 01 April 2015 - 31 July 2016 Chief Executives Office April 2016 May 2016 June 2016 July 2016 Total Possible Days 161.80 160.60 147.10 131.80 Days Lost Through Short Term Sickness0.80 0.00 0.00 0.00 Days Lost Through Long Term Sickness0.00 0.00 0.00 0.00 Short Term Lost Time Rate 0.49% 0.00% 0.00% 0.00% Long Term Lost Time Rate 0.00% 0.00% 0.00% 0.00% Total Lost Time Rate 0.49% 0.00% 0.00% 0.00% Days lost per employee 0.10 0.00 0.00 0.00

Chief Executives Office 01.04.15 - 31.03.16 01.05.15 - 30.04.16 01.06.15 - 31.05.16 01.07.15 - 30.06.16 01.08.15 - 31.07.16 Total Possible Days 2,081.80 2,057.50 2,040.80 2,005.30 1,960.70 Days Lost Through Short Term Sickness34.50 35.30 22.30 22.3 19.8 Days Lost Through Long Term Sickness0.00 0.00 0.00 0.00 0 Short Term Lost Time Rate 1.66% 1.72% 1.09% 1.11% 1.01% Long Term Lost Time Rate 0.00% 0.00% 0.00% 0.00% 0.00% Total Lost Time Rate 1.66% 1.72% 1.09% 1.11% 1.01% Days lost per employee 3.50 4.00 2.50 2.50 2.00 Appendix 4

Community Planning Update

1. PARTNERSHIP PANEL There was a pre meeting of the local government representatives on 28 September 2016 in advance of the full Partnership Panel meeting on 12 October. It was agreed that a number of issues should be raised including:  NI Executive Office, DFC & Ministers need to give direction to each Partner Agency on budgets and financial contributions to community plans  Statutory and non- Statutory Partners also need to ensure representatives sitting on Community Planning Boards are of sufficient seniority to take decisions on behalf of their organisations Attached at Appendix CPM1 are the minutes and action sheet from the Partnership Panel pre-meeting. Recommendation Members are recommended to note the content of the minutes and action sheet.

2. SOLACE The Solace NI meeting on 23 September included a discussion on the following strategic area of work:

 Community planning, alignment with the Programme for Government 2016-21 and the General Power of Competence

 Preparing Community Plans and ensuring a degree of consistency

 Funding Community Plans

 Engaging statutory and non-statutory partners

 Working with communities and developing an evidence base Attached at Appendix CPM2 is the note prepared after the discussion. Recommendation Members are recommended to note the meeting with SOLACE. Appendix CPM1

Outcome Note Local Government Preparation Forum for Partnership Panel Wednesday 28th September 2016 Antrim Civic Centre

Present Cllr Sean McPeake, NILGA President (Chair) Ald Freda Donnelly, NILGA Office Bearer Cllr Richard Smart, Ards and North Down Borough Council Ald John Finlay, Causeway Coast and Glens Borough Council Cllr Rosemarie Shields, Fermanagh and Omagh District Council Cllr Dermot Curran, Newry Mourne and Down District Council Cllr Maoliosa McHugh, Derry and Strabane District Council Ald Alan McDowell, NILGA Office Bearer Cllr Seamus Doyle, NILGA Office Bearer alternate Officers: Dr Theresa Donaldson, Chief Executive, Lisburn and Castlereagh City Council Derek McCallan, NILGA Chief Executive Nichola Creagh, Department for Communities Andrea McClean, Antrim and Newtownabbey Borough Council Russell Connelly, Belfast City Council Antoinette McBride, NILGA Partnership Panel Secretariat

Apologies: Ald Mark Cosgrove, Antrim and Newtownabbey Borough Council, Cllr John Kyle, Belfast City Council, Cllr Gerardine Mulvenna, Mid and East Antrim Borough Council, Ald Arnold Hatch, NILGA Office Bearer, Brendan Hegarty, Fermanagh and Omagh District Council, Jacqui Dixon, Antrim and Newtownabbey Borough Council, Suzanne Wylie, Belfast City Council .

1. Welcome and Opening Remarks

Cllr Sean McPeake (Chair), welcomed Members and Officers to the session, and in particular welcomed newly appointed Members to the Partnership Panel. The Apologies were noted.

In his opening remarks, the Chair emphasised the importance and the key purpose of today’s session: – for “Team Local Government” to discuss and reach shared consensus on the key, regional, strategic issues to be brought to the Partnership Panel Meeting on 12th October 2016.

1 Members considered Paper A, the outcomes note of the last Local Government Partnership Panel session on 21st April; the note was agreed; proposed by Cllr Maoliosa McHugh and seconded by Cllr Dermot Curran.

2. Draft REVISED Partnership Panel Work Plan

The draft Partnership Panel Work Plan is still work-in-progress and will be further consulted upon and evolve to meet both Council and wider Programme for Government (PfG) needs. The Panel will move from an “advisory body” role, to one which can now take action – “The Panel may give advice to those involved in local government and INITIATE ACTIONS, stemming from the Panel’s discussions, involving any Northern Ireland Department and local government”.

This key change in the Terms of Reference will better enable the Partnership Panel to deliver on its work programme. Members discussed the importance of the Panel as an “action orientated body”, and considered the use of “Task and Finish” working groups to be set up to undertake tangible activity and ensure programme delivery between Partnership Panel meetings. The support of officials in this regard was further emphasised, integrating the effort will be important.

It was agreed that a piece of work be taken forward by DfC and NILGA initially, in order that an augmentation review is planned, together with a review of impact of the functions transferred from Central to Local Government to date. A task and finish group could materially assist this in due course (reporting to the late January 2017 meeting of the Panel).

The Functions which to date have transferred from central to local government were to be fit for purpose, sufficiently funded and cost-neutral to the ratepayer at the point of transfer - it is becoming increasingly evident that this is not the case. There are valuable lessons to be learnt by central and local government for future transfer of functions.

Paper B was noted.

3. Issues raised by individual councils sent to Joint Secretariat

An updated “Paper C” was tabled as additional submissions were received from Councils. Written submissions (utilising the “optional” template supplied by NILGA as Joint Secretariat) were received from Fermanagh and Omagh District Council, Causeway Coast and Glens Borough Council, Lisburn and Castlereagh City Council and Belfast City Council. A Paper was also received from SOLACE on proposed actions to take forward Community Planning. A verbal update was also received by Derry and Strabane District Council Partnership Panel representative, Cllr Maoliosa McHugh.

At this point, it was suggested by a Member that although presented as an “optional” template - for future Local Government Preparation meetings, all Councils should use the template, to facilitate a complete 11 Council, constructive discussion on issues of regional, strategic significance to be brought to the Partnership Panel table. 2

The Member-Officer team considered all of the issues brought by Councils to date and agreed that the following items should be brought to the Partnership Panel Meeting on the 12th October:

A. Community Planning

 Community Planning Funding – Ministers need to give direction to each partner agency on budgets and financial contributions for community planning.

 Community Planning Representatives need to be of sufficient seniority to take decisions on behalf of their organisation.

 The Community Planning Officers Group Working Group will compile and analyse the costs of associated with community planning across the local government sector.

 Scrutiny and Performance Management - Further clarification is required regarding the scrutiny and performance management arrangements for all partners involved in the process of community planning.

 NILGA will work with SOLACE to coordinate a Members Community Planning Learning Network, drawing from its existing core work, and importantly also, from the professional officer grouping now established between Councils.

B. Tackling Disadvantage in Rural Areas; and improving access to services in rural areas

 Development of a Government Strategy aimed at tackling disadvantage in rural areas.

 Rural disadvantage and lack of a “primary” department is an all Council issue. Rural Disadvantage “loosely” covered in PfG. The Rural Proofing Bill and Rural Development Programme also do not go far enough, insufficient evidence at this stage of cross cutting, interdepartmental action on Rural Disadvantage.

 NILGA with cross council representation can raise mainstreaming of investment with DAERA Minister (appointment to be confirmed) linked to PfG.

C. Legacy Planning Issues

 At 1st April 2015, the DOE transferred hundreds of legacy planning applications across to Local Authorities dating back to the 2000s.

 The transfer of existing DOE staff resources did not take into account workload; legacy and current workloads that Councils are faced with.

 There were also many applications transferred requiring specialist skills that were not transferred to Councils; therefore additional resources and costs were burdened on the new Councils

3  Introduction of the Performance Management role of Planning HQ with the requirement of Council to deliver on Statutory Key Performance Indicators – lack of resources available to deal with legacy applications.

 Department should acknowledge their role in creating this problem and seek to reimburse Councils for key outlays.

 Formal Complaints and Ombudsman Cases – A number of Councils have raised issues with the draft protocol for handling formal complaints and ombudsman cases, where a complaint relates to the actions taken by the Department prior to April 2015 and transfer of planning of Councils. It is important that there is a final protocol put in place which is agreed between central and local government.

 The “New Burdens Doctrine” in England, Scotland and Wales identifies additional costs and impacts up to five years after transfer, a version of this should be developed for Northern Ireland.

D. Planning Portal

 The Planning Portal which will be operational until March 2019 is not fit for purpose. While aware that the Department and the 11 Councils are in the investigation stage of consideration for a new “fit for purpose” system, it is extremely important that the Department for Infrastructure lead on this with the Councils urgently.

E. Off-Street Car Parking

 Off Street car parking continues to be a financial burden on Councils.

 Transport NI and NSL have negotiated a new contract. This is to run for a further 3 years and as part of those negotiations there will be an increase in cost for services provided through Transport NI and their agents NSL on behalf of Councils. (It was Councils’ preferred option to have a single year extension and also be part of the negotiations. Neither of these were permitted/facilitated by Transport NI.)

 Prior to the contract negotiations Transport NI indicated that there would be 3% uplift in delivering the contract after October 2016; however, recent discussions have indicated that the uplift might be more significant. Councils through SOLACE have raised concerns regarding this increase with the Permanent Secretary, Mr Peter May.

 As a result of these discussions and due to the fact that the Off-Street Car Park responsibility was to have cost neutral implications for councils the Department has now agreed a refund of £110,000.00 to the 11 councils.

4

 Councils require a further discussion with the Department of Infrastructure on this matter, welcome the outcome of recent evidence provision but need to continue the negotiations.

 The New Burdens Doctrine in England, Scotland and Wales identifies additional costs and impacts up to five years after transfer, and enables recuperation of any substantive costs not planned for or delivered at the point of transfer.

F. Major Capital Projects; Establishing Partnerships

 Opportunity / Risk exists in developing new ways of working in partnership between local and central government, and between the public and private sector for major capital projects going forward. Good groundwork has established a “menu” of initiatives, but definitive guidance would materially assist.

 A commitment from the Partnership Panel to jointly look at or collectively endorse this would be very helpful. (Lisburn and Castlereagh City Council are exploring such a project - the provision of Knockmore M1 Link Road – the development would unlock the major development potential of the West Lisburn area.)

G. Developer Contributions – Section 76 Planning Agreements

 Section 76 of The Planning Act (NI) 2011 and the Strategic Planning Policy Statement Northern Ireland 2015 (SPPS), provide the legislative and policy basis for a local authority to enter into Planning Agreements. The SPPS also refers to other forms of developer contributions and community benefits which may be required from developers to facilitate their development proposals. The Planning Policy Division was responsible for developing the relevant planning legislation and policy set out above and maintains ongoing responsibility in line with Ministerial direction.

 The Department for Infrastructure should be encouraging stakeholder engagement in the establishment of a broad framework to deliver Section 76 Planning Agreements and exploring the potential for a joint approach between central and local government.

 Local government in NI does not have the wide range of powers as counterparts across the water. Hence contributions in terms of education, health, transport and some other amenities will need to be developed in conjunction with the relevant department. We should work in partnership to deliver a framework around this between central and local government.

Action: NILGA Joint Secretariat will generate a paper on AGREED Local Government Agenda Items for Partnership Panel meeting on 12th October 2016.

See “Local Government Strategic Issues / Action Paper” for Partnership Panel.

5 Action: Major Capital Projects; Developer Contributions – A piece of work to be undertaken identifying a means to collect and disseminate contributions gained from developers by planning authorities. NILGA to obtain existing guidance / practice in neighbouring jurisdictions.

 Governance arrangements  Legal protections  What is achievable?

Resolution of other issues raised at Prep session:

Tyres: Nichola Creagh advised that DAERA are working on a Strategy re Waste tyres, and the Department will provide an update at the Partnership Panel meeting.

Radiotherapy Services at Altnagelvin and City Hospital: Issue will be raised with the Health Minister outside of the Partnership Panel meeting.

Use of neonics and their impact of beekeeping: Council will work with relevant agencies and a local meeting called as necessary.

4. Draft Agenda for Partnership Panel Meeting, Wednesday 12th October 2016

Draft Agenda for meeting on 12th October 2016, and the Minutes of the last Partnership Panel meeting in October 2015 were NOTED.

The Draft Revised Terms of Reference and Standing Orders for Partnership Panel were also NOTED.

Nichola Creagh from the Department for Communities advised that the Papers for Partnership Panel will be issued within 5 working days of the Partnership Panel Meeting.

It was acknowledged that it would be much more beneficial for Local Government if Departments made available the Papers being brought to Partnership Panel table well in advance of the meeting. Action: Emphasis on the importance of getting Papers early will be raised at Partnership Panel Meeting.

5. Next Local Government side Meeting

There will be a Local Government briefing session for final preparations for the Local Government Team at 12 noon on Wednesday 12th October (Stormont Hotel, Confex Suite) in advance of the main meeting which will take place at 2pm in the Pavilion Building, Stormont Estate. Further information and Papers for these will follow.

6 LOCAL GOVERNMENT STRATEGIC ISSUES / ACTION PAPER PARTNERSHIP PANEL

STRATEGIC ISSUE “PROPOSING” ALL COUNCIL / PROPOSED ACTION ADDITIONAL NOTES – COUNCILS DEPARTMENTAL Supplementary Points SIGNIFICANCE COMMUNITY PLANNING Fermanagh & Omagh YES. LG Spokesperson to raise Statutory and non- District Council and suggest that the NI Statutory Partners also For the Community Executive Office, DFC & need to ensure Causeway Coast & Glens Planning Process to work Ministers need to give representatives sitting on Borough Council & to deliver real direction to each Partner Community Planning improvement for our Agency on budgets and Boards are of sufficient Lisburn & Castlereagh City communities; Statutory financial contributions to seniority to take decisions Council Partners (and other community plans. on behalf of their Partners) need to organisations. financially contribute. NILGA OB to supplement Councils even in the with existence in Scotland Commitment to the formative stages are of Community outcomes of Community incurring costs of well over Empowerment Act (2015) Plans will of course be £100,000 in preparing high which enforces significant by all Partners. quality evidence and participation – we wish to consultative processes. avoid punitive legislation. NILGA working with SOLACE to coordinate Community Planning Learning Network between Councils. 1 STRATEGIC ISSUE “PROPOSING” ALL COUNCIL / PROPOSED ACTION ADDITIONAL NOTES – COUNCILS DEPARTMENTAL Supplementary Points SIGNIFICANCE TACKLING Fermanagh and Omagh YES. F&O spokesperson to raise Tackling rural DISADVANTAGE IN District Council & suggest the development disadvantage is listed in RURAL AREAS; Rural disadvantage and of a Government Strategy the proposed draft IMPROVING ACCESS TO lack of a “primary” aimed at tackling Partnership Panel work SERVICES IN RURAL department is an all disadvantage in rural plan, can some basic AREAS Council issue (BCC has areas, and highlight that it terms of reference be the Colin Mountain / should be a feature of the commissioned through Belfast Hills). 2016/17 work plan (see PP? Rural Disadvantage across). “loosely” covered in PFG. The Rural Proofing Bill and NILGA OB to highlight that Rural Development Minister McIlveen Programme also do not go (DAERA) has agreed to a far enough, insufficient meeting; with cross council evidence at this stage of representation we can cross cutting, raise mainstreaming of interdepartmental action on investment at this, linked to Rural Disadvantage. PfG.

2 STRATEGIC ISSUE “PROPOSING” ALL COUNCIL / PROPOSED ACTION ADDITIONAL NOTES – COUNCILS DEPARTMENTAL Supplementary Points SIGNIFICANCE LEGACY PLANNING Lisburn and Castlereagh YES. (Costs) LCC spokesperson ISSUES City Council The former DoE to raise and suggest that transferred hundreds of Department for Belfast City Council legacy planning Infrastructure’s Planning applications across to Division should materially Councils dating back to the assist to remedy the issue. 2000s.The transfer of existing DoE staff resources did not fully take into account legacy and current workloads that Councils are faced with. There are also many applications transferred requiring specialist skills that were not transferred to (Complaints) BCC Councils; therefore spokesperson to raise and NILGA OB to refer to the additional resources and suggest that to remedy New Burdens Doctrine in costs were burdened on formal complaints and England, Scotland and the new Councils. ombudsman cases, it is Wales which identifies important that there is a additional costs and A number of Councils have final protocol linked to the impacts up to five years also raised issues with the revised Code of Conduct after transfer, a version of draft protocol for handling put in place which is this should be developed formal complaints and agreed between central for NI. ombudsman cases, where and local government. a complaint relates to the actions taken by the Department prior to April 2015 and transfer of planning to Councils. 3 STRATEGIC ISSUE “PROPOSING” ALL COUNCIL / PROPOSED ACTION ADDITIONAL NOTES – COUNCILS DEPARTMENTAL Supplementary Points SIGNIFICANCE PLANNING PORTAL Lisburn and Castlereagh YES. LG spokesperson to raise NB: It should be noted that City Council and suggest that the there are some concerns The Planning Portal which Department and the 11 within the sector as to why will be operational until Councils are in the a new bespoke system March 2019 is not fit for ‘discovery’ stage of seems to be the preferred purpose; good work has development of a new “fit direction of travel, when it been done to bring the for purpose” system, it is is the case that similar issue and costs to the table extremely important that products (available faster but urgent decisions are the Department for and possibly costing less) required in relation to the Infrastructure leads on this are already available and action to be taken. with the Councils as a operational in councils in matter of urgency. other jurisdictions. Development of the Also – communications proposed new system has between the ‘Planning a 2 year ‘lead in’ time. Portal Governance Group’ and councils/councillors needs to be improved.

4 STRATEGIC ISSUE “PROPOSING” ALL COUNCIL / PROPOSED ACTION ADDITIONAL NOTES – COUNCILS DEPARTMENTAL Supplementary Points SIGNIFICANCE OFF-STREET CAR Lisburn and Castlereagh YES. LG spokesperson to raise Prior to the contract PARKING City Council and confirm that as a result negotiations Transport NI Off Street car parking a of these discussions and indicated that there would Derry City and Strabane disproportionate financial due to the fact that the Off- be 3% uplift in delivering District Council burden on Councils. Street Car Park the contract after October responsibility was to have 2016; however, recent Transport NI and NSL cost neutral implications for discussions have indicated (contracted traffic wardens councils the Department that the uplift might be body) have negotiated a has now agreed a more significant. Councils new contract. This is to welcome refund of through SOLACE have run for a further 3 years; £110,000.00 to the 11 raised concerns regarding there will be an increase in councils. this increase with the cost for services provided Permanent Secretary, Mr through Transport NI & Councils require a further Peter May. their agents NSL on behalf discussion with the of Councils. (It was Department of NILGA OB to once again Councils’ preferred option Infrastructure on this draw attention to the New was to have a single year matter, welcome the Burdens Doctrine in extension & be part of the outcome of recent England, Scotland and negotiations. Neither of evidence provision but Wales which identifies these was need to continue the additional costs and permitted/facilitated by negotiations. impacts up to five years Transport NI.) after transfer, and enables recuperation of any substantive costs not planned for or delivered at the point of transfer.

5 STRATEGIC ISSUE “PROPOSING” ALL COUNCIL / PROPOSED ACTION ADDITIONAL NOTES – COUNCILS DEPARTMENTAL Supplementary Points SIGNIFICANCE MAJOR CAPITAL Lisburn and Castlereagh YES. LG spokesperson & EXAMPLE: Lisburn & PROJECTS; City Council NILGA President to Castlereagh City Council is ESTABLISHING GOOD Opportunity / Risk exists in highlight the opportunities exploring the provision of GOVERNANCE Investment across NI in developing new ways of and the obvious Knockmore M1 Link Road GUIDANCE key infrastructure projects working in partnership recognising the importance commitment at both levels – the development would between local & central of good governance and to explore further (e.g. unlock the major prudence – guidance government, & between Finance Minister meeting development potential of would be helpful. the public & private sector 22/9/16) but gain the West Lisburn area. for major capital projects commitment from the going forward. Good Partnership Panel to groundwork has support developing the established a “menu” of guidance through its work initiatives, but definitive plan, utilising NILGA and guidance would materially DF work & further work to assist. come.

6 STRATEGIC ISSUE “PROPOSING” ALL COUNCIL / PROPOSED ACTION ADDITIONAL NOTES – COUNCILS DEPARTMENTAL Supplementary Points SIGNIFICANCE DEVELOPER Belfast City Council YES LG spokesperson to raise Developer contributions CONTRIBUTIONS – and suggest that the are essential in the Section 76 of The Planning Section 76 Planning Department for furtherance of strategic can Act 2011 & the Strategic Agreements Infrastructure should be be essential in the Planning Policy Statement encouraging stakeholder development of open Northern Ireland 2015 engagement in the spaces, business (SPPS), provide the improvements, etc., but establishment of a broad legislative policy basis for a also a strong accountability framework /guidance to local authority to enter into framework must be put in deliver Section 76 Planning Planning Agreements. The place so that the Agreements and exploring SPPS also refers to other contributions are used in the potential for a joint forms of developer the wider public interest. approach between regional Example: Falkirk Stadium, contributions & community and local government. developer contributions benefits which may be have released finances acquired from developers Additional spokesperson to into adjacent to facilitate positive voice that this is an all neighbourhood renewal additional gains / council, all department activity in villages around proposals. The Planning issue, in that developers the district. Policy Division was may be delivering planning responsible for developing gains and investments the relevant planning after planning permission legislation and policy set is granted, which materially out above and maintains involves one or more ongoing responsibility in department (e.g. Housing line with Ministerial Health, Education, direction. Transport, Council).

7 STRATEGIC ISSUE “PROPOSING” ALL COUNCIL / PROPOSED ACTION ADDITIONAL NOTES – COUNCILS DEPARTMENTAL Supplementary Points SIGNIFICANCE PROPOSED Proposed at Local The functions which to NILGA OB to raise and Augmentation Review AUGMENTATION Government side meeting date have transferred from suggest that in the Work must also look at REVIEW OF THE 28.09.2016 central to local government Plan, DFC and NILGA Economic Impact of FUNCTIONS existing transfers together were to be fit for purpose, commission a piece of TRANSFERRED FROM with the performance sufficiently funded and work to be developed by a CENTRAL TO LOCAL small “Task & Finish” related to transfers. Local GOVERMENT TO DATE cost-neutral to the Government spokesperson Group to develop evidence ratepayer at the point of to once again draw and business case(s) of an transfer - it is becoming attention to the New Augmentation Review on evident that these Burdens Doctrine in behalf of Partnership principles are being tested, England, Scotland and Panel. Wales which identifies and some powers / additional costs and functions have yet to impacts up to five years transfer. There are after transfer, and enables valuable lessons to be recuperation of any learnt by central and local substantive costs not government for future planned for or delivered at transfer of functions. the point of transfer.

8 CPM2

Solace NI Meeting 23 September 2016 Craigavon Civic Centre

STRATEGIC AREA OF WORK DISCUSSION

Use community planning to join up services and improve the quality of life for citizens (to include social inclusion and health inequalities)

Attendees: Nichola Creagh, Department for Communities Heather McKee, Newry, Mourne and Down District Council Alison Keenan, Antrim and Newtownabbey Borough Council Patricia Mackey, Ards and North Down Borough Council Sharon McNicholl, Belfast City Council Martina Totten, Mid Ulster District Council Kim McLaughlin, Fermanagh and Omagh District Council Catharine McWhirter, Lisburn and Castlereagh City Council Fiona Surgeoner, Mid and East Antrim Borough Council Rachael Craig, Derry City and Strabane District Council

Apologies: Elizabeth Beattie, Causeway Coast and Glens Borough Council

Overview Nichola Creagh, Department for Communities, provided an overview of progress to date with regards to the process of community planning and the development of Community Plans. Nichola commended the commitment of Councils in driving forward community planning and indicated that the Department will continue to play a facilitative role in the process. The Department also agreed to support initiatives such as sharing data, information and best practice across the local government sector.

The Delivery Plans to support the Programme for Government 2016-21 will be considered by the NI Executive on Thursday 29 September and released for public consultation on Friday 30 September. This presents an ideal opportunity to ensure

1 strategic alignment between the Programme for Government and Community Plans. However, it was suggested that Delivery Plans should also be aligned to the budget and linked to the emerging Community Plans, and that Senior Responsible Officers should recognise Community Plans as the delivery mechanism for the Programme for Government at a local level.

Funding community planning There was a substantial discussion regarding the costs incurred by Councils as a result of community planning. The estimated annual cost to each Council is around £200k and to date, both statutory and non statutory partners appear to be unwilling to make a financial contribution towards the process. There are also inconsistencies in the level of support Councils receive from partner organisations, in terms of attending meetings, assuming a lead role in designated thematic areas and representation on Community Planning Partnerships. It was noted that, as effective partnership working underpins community planning, all partners should ‘buy in’ to and participate in the process on an equal basis. The Department for Communities has a key role to play in communicating this message and opening up the debate on the role of all partners in community planning.

It was agreed that:  Nichola Creagh will raise the issue of resources, financial contributions and ‘in kind’ support from partners to the process of community planning with the Permenent Secretary and Minister for Communities.  The Community Planning Officers Group will compile and analyse the costs associated with community planning across the local government sector, which may involve staff costs, consultation costs, action planning costs. This issue will be raised at the Partnership Panel meeting, in addition to the issues around community planning which have been put forward by Lisburn City and Castlereagh City Council, Fermanagh and Omagh District Council and Causeway Coast and Glens Borough Council.

Summary of other issues raised and the key points discussed Data sharing – Data sharing and access to statistical information is an important element of community planning. It facilitates the development of an evidence base to inform the action planning process and puts in place robust arrangements to monitor the impact and outcomes of actions and projects. The Department for Communities agreed to help facilitate the process of data sharing and it was suggested that a data sharing agreement should be developed at a regional level, in order to ensure a cohesive approach across the sector.

Consistency – There is a need to ensure a degree of consistency across the 11 Community Plans, as many of the emerging themes, outcomes and actions are likely be similar. This may provide opportunities for joined up working and collaboration

2 at a regional and sub regional level. It was agreed that, in the first instance, Nichola Creagh will organise a meeting with Officers to discuss and identify consistencies and commonalities across the 11 Community Plans. This will then be followed up by a meeting with the Chairpersons of the 11 Community Planning Partnerships.

Community Planning Group – This group is recognised as an excellent mechanism and network to share best practice, disseminate information, address issues and communicate progress regarding community planning across both regional and local government.

Scrutiny and performance management - Further clarification is required regarding the scrutiny and performance management arrangements for all partners involved in the process of community planning. It was noted that the Audit Panel can provide scrutiny for Councils, but that this will not incorporate or take account of the role of partners.

Stakeholder engagement - It was reinforced that effective and robust engagement and participation by key stakeholders underpins the process of community planning. Community planning is long term, focused on delivering real outcomes and cannot be rushed. It should therefore be recognised that the process of building sustainable relationships in Northern Ireland across the public, private and voluntary sectors to facilitate community planning has evolved within very tight timescales.

Well-Being Framework - Clarification and further information is required regarding the link between the Programme for Government and Well-Being Framework, and how both will address the shifting demographics of an ageing population.

Solace engagement - It was agreed that, going forward, a Chief Executive will work with the Community Planning Group, hosting an initial meeting to provide direction and help ensure current and emerging issues are resolved at a regional level.

It was agreed that:  The Department for Communities will help facilitate the process of data sharing at a regional level.  The Department for Communities will organise a meeting with Officers to discuss and identify consistencies and commonalities across the 11 Community Plans. This meeting will be followed up by a meeting with the Chairpersons of the Community Planning Partnerships.  A Chief Executive will work with the Community Planning Group, hosting an initial meeting to provide direction and help ensure current and emerging issues are resolved.

3 Appendix 5

PERFORMANCE IMPROVEMENT AUDIT

As Members are aware the Local Government Auditor recently carried out a Performance Improvement Audit of the Council in order to meet the requirements of the Local Government Act (NI) 2014. As way of an update on the progress of this, the auditor aims to send out an initial draft of their report to be agreed for factual accuracy at the end of October/early November. The Chief Executive will need to agree the final draft mid/late November. A further update will be brought to the next G&A Committee.

Recommendation

It is recommended that members note this item.

CUSTOMER SERVICE EXCELLENCE

Members are reminded that Council approved for the organisation to continue with maintaining the Customer Service Excellence Standard (CSE), this involves reaccrediting the services who held the standard in the extant Lisburn City Council. A procurement exercise has recently been carried out and an assessment body has been appointed. The services involved will commence preparation work in the coming months towards the CSE accreditation.

Recommendation

It is recommended that members note this item.

PETITION POLICY

Members will be aware that at the last committee meeting an independent investigator suggested that a policy and guidance document for handling petitions made to Council is developed. It was also suggested that guidance should be produced for Elected Members and staff about the completion of petitions. As way of an update on the progress of this, work is continuing to develop these documents, when they are produced they will be brought to a future committee meeting for approval.

Recommendation

It is recommended that members note this item. Appendix 6

Audit and Risk Manager Please find attached the following Reports that the Northern Ireland Audit Office has recently released. The Rivers Agency: Flood Prevention and Management Report – issue date 13th September 2016. Attached at Appendix HOA1 is a Report by the Comptroller and Auditor General which reveals that there is still room to improve the systems for preventing and managing flooding. Besides the Rivers Agency other public bodies are involved in flood prevention and response, for example Transport NI, NI Water and Local Councils. The Report makes reference to Councils on pages 14 paragraph 1.4. It also refers to the Local Government Emergency Management Group and Local Community Flood Resilience Forums in which Councils would participate (page 52). On Appendix 3 page 55 the Report includes the Council as a Public Sector Stakeholder and sets out our stakeholder requirements. Other stakeholders referred to in Appendix 3 who would interact with the Council include Reservoir Operators, NI Water, Rivers Agency, Bus Operator, Property Developers and Private and Public landlords. The Report would also be a source of information for the following services provided by the Council:  Community Planning  Planning  Building Control  Emergency Planning  Environmental Services Recommendation It is recommended that Members note the report and its implications for the Council in regards to Flood Prevention and Management.

The National Fraud Initiative: Northern Ireland – issue date 7th July 2016 Attached at Appendix HOA2 is a Report by the Comptroller and Auditor General on the outcomes from the last National Fraud Initiative (NFI) exercise that was carried out. This covered data from the period April 2014 to March 2016. The NFI exercise is run every two years and is a tool used to identify potentially fraudulent and erroneous transactions using computer based data matching techniques. Over 100 public bodies took part in the fourth running of the exercise in Northern Ireland. A pictorial representation of the results for the exercise are contained on page 5 (figure 1) of the report. All high risk matches were investigated in LCCC and this was reported to members in our Annual Internal Audit Report in June 2016.

The next cycle of the NFI exercise has just commenced with data due to be uploaded to Cabinet Office website on the 10th October 2016. The results from this cycle is due to be released back to us in January 2017 – for review, investigation and reporting of the high risk matches. Recommendation It is recommended that Members note the report. Appendix HOA1

The Rivers Agency: Flood Prevention and Management

REPORT BY THE COMPTROLLER AND AUDITOR GENERAL 13 September 2016 Cover Photograph: Upper Bann, January 2016. Photograph courtesy of the Rivers Agency. The Rivers Agency: Flood Prevention and Management

The Rivers Agency: Flood Prevention and Management

Published 13 September 2016 2 The Rivers Agency: Flood Prevention and Management

Executive Summary The Rivers Agency: Flood Prevention and Management

This report has been prepared under Article 8 of the Audit (Northern Ireland) Order 1987 for presentation to the Northern Ireland Assembly in accordance with Article 11 of the Order.

K J Donnelly Northern Ireland Audit Office

Comptroller and Auditor General 13 September 2016

The Comptroller and Auditor General is the head of the Northern Ireland Audit Office. He, and the Northern Ireland Audit Office are totally independent of Government. He certifies the accounts of all Government Departments and a wide range of other public sector bodies; and he has statutory authority to report to the Assembly on the economy, efficiency and effectiveness with which departments and other bodies have used their resources.

For further information about the Northern Ireland Audit Office please contact:

Northern Ireland Audit Office 106 University Street BELFAST BT7 1EU

Tel: 028 9025 1100 email: [email protected] website: www.niauditoffice.gov.uk

© Northern Ireland Audit Office 2016 4 The Rivers Agency: Flood Prevention and Management

Executive Summary The Rivers Agency: Flood Prevention and Management

Contents

Page

Executive Summary 9

Part One Background and Introduction 13

Flooding cannot be entirely prevented 14 A number of other public bodies are involved in flood prevention and response 14 Flooding has caused significant damage in Northern Ireland 15 Flooding is predicted to be more frequent in the future 16 The Rivers Agency is facing a number of challenges 17 This study examines the Rivers Agency’s management of flood risk and protection within Northern Ireland 17 Value for Money statement 18

Part Two Identification of Flood Risk 19

The Rivers Agency’s Flood Risk Management Strategy is in line with the EU Floods Directive requirements 20 The methodologies and risk calculations used to support the Strategic Flood Map and the Detailed Flood Maps are fit for purpose 22 More could be done to engage with stakeholders 24 The recommendations from a 2012 review of flooding have been implemented 26 Weather warning arrangements in Northern Ireland have improved 27 Improvements to the Flooding Incident Line have been slow and too many calls are abandoned 28 There are effective structures, guidance and protocols in place to allow relevant stakeholders to collaborate during flooding incidents 32 The Rivers Agency is proactive in improving resilience to flooding within Northern Ireland, especially in areas subject to repetitive flooding 32 The Rivers Agency: Flood Prevention and Management

Contents

Part Three Implementation and Protection of the Rivers Agency’s Flood Prevention Assets 37 The Strategic Flood Map and the Detailed Flood Maps are useful for development planning, promoting and designing resilience measures, and flood defence prioritisation 38

The Rivers Agency’s assessment of capital schemes could be less subjective 39 Our review of flood defence projects found cost overruns 43 Whilst the Rivers Agency’s management accounting system can identify each major project, it is unable to provide details on the stages within each project 45 The cost of responding to, and damage caused by, serious flooding incidents is unknown 45 The Rivers Agency has an ongoing cycle of inspection, assessment and intervention to ensure the effective functioning of flood defence assets 46

Appendices

Appendix 1 Our Consultant’s terms of reference 50

Appendix 2 Flood Risk Management Structures (pre and post December 2015) 51

Appendix 3 Stakeholders identified by NIAO for flood risk management in Northern Ireland 54

Appendix 4 The PEDU report, published in September 2012, made 12 recommendations 60

Appendix 5 NIAO’s review of capital projects 63

Appendix 6 Capital projects constructed between 2007-08 and 2014-15 65

NIAO Reports 2015-16 66 The Rivers Agency: Flood Prevention and Management

Abbreviations and Glossary

DARD Department of Agriculture and Rural Development DFP Department of Finance and Personnel DOE Department of the Environment DoF Department of Finance DRD Department for Regional Development ESS Enterprise Shared Services within the Department of Finance provides shared services to the NI government departments and some of their agencies, including Account NI, HR Connect, Records NI, Network NI, the Centre for Applied Learning and IT Assist. EU European Union FIL Flooding Incident Line Flood Response Agencies Rivers Agency, NI Water and TransportNI are often referred to as The three Flood Response Agencies

FRMP Flood Risk Management Plan GB Great Britain GIS Geographic Information System NI Northern Ireland NIAO Northern Ireland Audit Office NICS Northern Ireland Civil Service NIFRS Northern Ireland Fire and Rescue Service OFMDFM Office of the First Minister and the Deputy First Minister PEDU Performance and Efficiency Delivery Unit PPE Post Project Evaluation PPS Planning Policy Statement PSNI Police Service of Northern Ireland SPPS Strategic Planning Policy Statement UK United Kingdom 8 The Rivers Agency: Flood Prevention and Management

Executive Summary The Rivers Agency: Flood Prevention and Management 9

Executive Summary

Upper Bann, January 2016. Photograph courtesy of the Rivers Agency. 10 The Rivers Agency: Flood Prevention and Management

Executive Summary

1. The Rivers Agency is a division of 6. The Rivers Agency could do more to the Department for Infrastructure and engage with stakeholders. We also prior to 6 May 2016 a division of the believe there is considerable scope to Department of Agriculture and Rural improve the performance of the Flooding Development (DARD). It is the statutory Incident Line. drainage and flood defence authority for Northern Ireland. Implementation and maintenance of 2. This study examines the identification of the Rivers Agency’s flood prevention flood risk and the implementation and assets maintenance of the Rivers Agency’s flood prevention assets. 7. The Strategic Flood Map and Detailed Flood Maps, developed by the Rivers Identification of flood risk Agency, are useful for development planning, promoting and designing 3. Flooding is a natural process that resilience measures and flood defence cannot be entirely prevented but it can prioritisation. be managed and its effects can be mitigated. In Northern Ireland there have 8. Our review of flood defence projects been a number of major flooding events undertaken by the Rivers Agency found in the last 20 years resulting in disruption a number of time and cost overruns. The to people and damage to infrastructure Rivers Agency has identified a number of and the natural environment. lessons from these projects that have the potential to improve performance in the 4. The number of properties in Northern future. Ireland that are at risk from flooding is low when compared to many other EU countries. Nevertheless, the impact of Summary of recommendations flooding can be devastating.

5. The Rivers Agency has developed a On the Identification of Flood Risk Flood Risk Management Strategy, flood maps and plans that have identified 9. In our view the number of multi-agency areas at significant risk of flooding. It Flood and Water management has also identified and worked with groupings may be too large to allow communities at risk of flooding to build an effective, co-ordinated approach. flood resilience and put in place suitable We recommend that consideration is flood warning and informing activities. given to streamlining these groupings. (Paragraph 2.6) The Rivers Agency: Flood Prevention and Management 11

10. We recommend that the Strategic Flood future to represent flooding risk over Map approach is assessed against the a development’s lifetime, which could Detailed Flood Maps, for areas where typically be 50 -100 years. We both exist, to understand better the recommend that the Rivers Agency implications of the weaknesses within should consult with the Planning the models. (Paragraph 2.13) Authority to determine if the maps meet their needs and how they could 11. The Detailed Flood Maps are fit for be improved, if cost effective to do so. purpose and likely to meet stakeholders’ (Paragraph 3.4) needs. We recommend that the Rivers Agency reviews the weaknesses 15. We found the flood defence capital identified in the Strategic Flood projects’ cost-benefit assessments are Map and Detailed Flood Maps for robust and consistent with NI Guide to stakeholders and examines the Expenditure Appraisal and Evaluation benefits of providing water speed and guidance. However, we recommend flood duration information suitable for that the Rivers Agency should ensure emergency and evacuation planning. that PPEs, tailored to the size of the (Paragraph 2.21) project, are completed in a timely manner and any lessons learned, 12. We recommend that the Rivers including the reasons why projects Agency, as chair of the Floods Strategy exceed budget, are disseminated as Steering Group, continues to work with soon as possible. (Paragraph 3.17) Enterprise Shared Services to ensure the FIL telephony service meets their, 16. We also recommend that the causes of and the public’s needs. (Paragraph the budget and time overruns, which 2.36) have been already identified by the Rivers Agency, are used to develop an 13. In relation to the FIL telephony service, action plan to reduce future delays and we recommend that the relevant cost overruns. (Paragraph 3.18) agencies reconsider how online technology can be harnessed to better 17. We found that the Rivers Agency’s meet the public’s needs. (Paragraph management accounting information 2.39) system is able to provide a breakdown of the different types of project but On the Implementation and Maintenance of the unable to provide detail on the stages Rivers Agency’s Flood Protection Assets within the projects i.e. planning, design, implementation and evaluation. This 14. We found the 2030 future scenario detail is maintained by the project presented in the Strategic Flood manager. We recommend that the Map and Detailed Flood Maps is Rivers Agency routinely reviews unlikely to be long enough into the the effectiveness of the project 12 The Rivers Agency: Flood Prevention and Management

Executive Summary

management information to ensure it meets its needs, provides detail on the project stages and considers what improvements a project management software tool could add. (Paragraph 3.22) Part One: Background and Introduction

Lough Neagh near Maghery Road, November 2015. Photograph courtesy of the Rivers Agency. 14 The Rivers Agency: Flood Prevention and Management

Part One: Background and Introduction

Flooding cannot be entirely prevented A number of other public bodies are involved in flood prevention and 1.1 Flooding is a natural process that cannot response be entirely prevented or controlled. However, arrangements can be put 1.4 Whilst the Rivers Agency is the statutory in place to help mitigate the risks of drainage and flood protection authority flooding and ensure that public bodies for Northern Ireland, a number of other are adequately prepared to deal with departments and agencies2 also have the effects of flooding and protect the significant flood related responsibilities: public. • TransportNI3 has responsibility for 1.2 In Northern Ireland, the Rivers Agency is blocked gullies and road drains the statutory drainage and flood defence (a major contributor to urban flash authority for Northern Ireland. Under the flooding). terms of the Drainage (NI) Order 1973, the Rivers Agency has discretionary • NI Water is responsible for provision powers to: and maintenance of public sewers and for effectively dealing with the • maintain watercourses and sea contents of those sewers (including defences which have been surface water, domestic sewage or designated by the Drainage Council trade effluent). for NI; • The Department for Infrastructure • construct and maintain drainage and (formerly the Department of the flood defence structures; and Environment) and local councils have to consider the risk of flooding • administer advisory and enforcement when deciding on planning procedures to protect the drainage applications. function of all watercourses. • NI Fire and Rescue Service provide 1.3 To reduce the risk of flooding, the Rivers the flood rescue service. Agency manages a culvert network of 400km and 107km of engineered soft • Local councils facilitate coordination defences1. The Rivers Agency also of the local level multiagency monitors and maintains 26km of sea emergency response to flooding defences and two tidal barriers designed when there is no risk to life. There to reduce the risk of flooding to low lying are currently five multiagency coastal land.

1 Engineered soft defences are flood embankments made of clay or other soft natural material. 2 The Rivers Agency, TransportNI and NI Water are referred to as the three Flood Response Agencies. 3 On 15 April 2013 the Roads Service became known as TransportNI, the sole road authority in Northern Ireland, responsible for public roads, footways, bridges and street lights.

1 1 1 1 3 The Rivers Agency: Flood Prevention and Management 15

Emergency Preparedness Groups in Flooding has caused significant Northern Ireland, which each has a damage in Northern Ireland flood working group and work to the same flood plan template. 1.7 Over the past 20 years, flooding • The Department of Finance in Northern Ireland has resulted in (formerly the Department of significant disruption to people and Finance and Personnel (DFP)) damage to infrastructure and the natural manages the Flooding Incident Line environment. Examples include: (FIL). • December 2015 and January 2016 1.5 The Rivers Agency estimate that – storms Desmond, Eva and Frank around five per cent of properties4 in caused flooding to several counties, Northern Ireland lie within the 100-year many roads were temporarily closed river floodplain5 or the 200-year coastal and a number of homes were floodplain. One third of these properties flooded. currently have some level of flood protection. • January 2014 – high tides and strong winds caused difficult driving 1.6 In December 2015 the Rivers Agency conditions, damage to roads on the published Flood Risk Management Plans east coast and posed a significant setting out how the Rivers Agency, other threat to Belfast city centre. responsible bodies and the community will work together to manage flood risk. • June 2012 – more than 1,000 The plans aim to help shape decision flooding related incidents occurred making and the investment within the in South and East Belfast and around communities in greatest need of flood 1,600 homes were damaged. This mitigation measures, through: resulted in over 600 emergency payments of £1,000 being made • preventing increased flooding by by Belfast City Council, on behalf of appropriate land use planning; the Department of the Environment, to households affected by floodwater. • protecting communities and the environment by the provision of • October 2011 – in the Omagh schemes and approaches to reduce area houses flooded, roads washed flood risk; and away, roads and bridges were closed, an electricity substation was • improving preparedness under threat, culverts collapsed, and arrangements, to improve dealing people had to be rescued. There with flooding when it occurs.

4 The Rivers Agency estimates 46,000 of Northern Ireland’s 830,000 properties are within these floodplains. 5 The 100-year floodplain describes the area that is likely to be flooded in a 100-year flood. This is a flooding event that has a 1% probability of occurring in any given year.

1 4 1 5 16 The Rivers Agency: Flood Prevention and Management

Part One: Background and Introduction

was also flooding in Omagh during • allow for an increase in the 1972, 1987, 1991, 1996, 1999, frequency of certain operational 2007. maintenance activities;

• November 2009 – Fermanagh • accelerate the rate of sewer suffered flooding, leading to a upgrades; significant disruption to life in the county at both individual and • bring forward major infrastructure community level, with the main projects; Enniskillen to Dublin road closed. • address infrastructure vulnerabilities • October 2009 – South and East which are not part of the public Belfast had localised flooding with network; and sewage contamination. • go beyond the current design • August 2008 – 1,600 properties standards on both the public and mainly in Belfast, County Down private network. and County Armagh were affected by flooding, 37 major roads were 1.10 Even a substantial increase in closed and the Westlink underpass expenditure of this nature, however, was submerged under 20 feet of could not prevent all flooding. To water. engineer systems designed to meet all possible weather events would be 1.8 The Rivers Agency currently has a total prohibitively expensive. The three budget of almost £24 million. Of flood response agencies suggested that this, around £9 million is allocated to lower, targeted investment could make a capital expenditure and £15 million is significant contribution to reducing flood allocated to resource costs (see Figure risk in local areas. 15). In 2015 its flood defence assets were valued at £620 million. The Rivers Agency employs more than 370 staff, Flooding is predicted to be more 214 of whom are a direct labour force, frequent in the future assigned to maintenance work and capital projects. 1.11 Climate change predictions for Northern 1.9 In April 2013 the three flood response Ireland suggest a rise in sea level, an agencies estimated that up to £420 increase in winter rain and an increase million of additional funding, if in the frequency and intensity of extreme available, could be spent to further rainfall events. mitigate flooding. This funding would: The Rivers Agency: Flood Prevention and Management 17

1.12 In addition to the climate change • a move from the Rivers Agency’s predictions it is generally accepted that current headquarters location to Northern Ireland is likely to experience Loughry College. more frequent flooding in the future. Within urban areas, surface water flooding may increase due to the This study examines the Rivers development on green spaces and the Agency’s management of flood risk paving of gardens and driveways. In and protection within Northern Northern Ireland, most storm water Ireland drainage systems are designed to cope with a 1 in 30 year rainfall event. Climatology predicts that these rainfall 1.14 This report examines the Rivers Agency’s events will be exceeded more frequently. effectiveness in identifying and reducing flood risk and developing and maintaining the flood defence assets, The Rivers Agency is facing a number considering: of challenges • has the Rivers Agency adopted an effective Flood Risk Management 1.13 The Rivers Agency, like the rest of the Strategy, to meet the requirements of NI public sector, is facing a number of the EU Floods Directive? (Part Two); challenges: • are there effective collaborative • a period of financial constraint and a working relationships across the reduced budget; public sector to support flood prevention and a flood response? • the loss of a number of staff through (Part Two); and the Northern Ireland Civil Service (NICS) wide Voluntary Exit Scheme6; • has the Rivers Agency established specific methodologies for identifying • organisational change – the Rivers serious flood risk areas, and Agency has recently become a produced supporting action plans division within DARD and in May to reduce flooding and build flood 2016 moved to the Department for resilience? (Part Three). Infrastructure; 1.15 To inform our review we: • dealing with reduced number of local councils, new structure and • interviewed relevant personnel powers; and – we conducted semi-structured interviews with officials, management and staff in the Rivers Agency;

6 The NICS-wide Voluntary Exit Scheme was launched in March 2015 to address the budget pressures facing Departments, by delivering an NICS paybill reduction.

1 6 18 The Rivers Agency: Flood Prevention and Management

Part One: Background and Introduction

• contracted a consultant – a consultant was engaged to assess the technical capability of the Rivers Agency’s Flood Risk Map data to inform and prioritise funding and programme management (further details at Appendix 1);

• identified case studies– examples were identified to illustrate good practice;

• carried out a data and document review – including those relating to expenditure, performance, fixed assets, financial management reporting, legislation and EU Directives; and

• met with stakeholders – meetings with staff in NI Water, Planning Authority, Red Cross, Met Office and Belfast City Council to gain views on collaborative working.

Value for Money statement

1.16 In our view, the Rivers Agency’s actions in preparing for and implementing the EU Floods Directive have been effective. It remains too early to evaluate whether the additional capital expenditure incurred on flood defences have provided value for money. Part Two: Identification of Flood Risk

Toome Sluices at the Upper Bann, November 2009. Photograph courtesy of the Rivers Agency. 20 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk

2.1 This part of our report considers the »» prepare detailed hazard and extent to which the Rivers Agency has flood maps; and adopted an effective Flood Risk Strategy and established effective collaborative »» produce flood risk working relationships. management plans containing objectives and measures to reduce flood risk. The Rivers Agency’s Flood Risk Management Strategy is in line with 2.3 To comply with the EU Floods Directive the EU Floods Directive requirements the Rivers Agency published the ‘Preliminary Flood Risk Assessment’, in December 2011, which identified 2.2 The EU Floods Directive aims to establish areas with a significant risk of a framework that will contribute to flooding. The Preliminary Flood Risk reducing the impact of flooding on Assessment considered flooding from communities and the environment. The the main flooding sources including Directive required a staged approach rivers, the sea, surface water runoff whereby each EU Member State was and impounded water bodies7. The required to undertake: timetable and work programme for the preparation of detailed Flood Risk • a Preliminary Flood Risk Assessment Management Plans were published on by 22 December 2011 to identify the 20 December 2012 and reflect the areas which have a significant risk of EU Floods Directive requirements. flooding (seeFigure 1);

• for these areas at risk:

Figure 1: The Rivers Agency’s four stage strategy to implement EU Floods Directive by 2015

Stage Target Result date Stage 1 Create NI legislation to implement the EU Floods Directive Dec 2009 Achieved

Stage 2 Undertake a preliminary flood risk assessment and identify significant Dec 2011 Achieved flood risk areas Stage 3 Produce hazard and flood risk maps for the significant flood risk areas Dec 2013 Achieved Stage 4 Produce flood risk management plans containing objectives and Dec 2015 Achieved measures to manage flood risk in the significant flood risk areas

Source: NIAO based on the Rivers Agency’s documents

7 Impounded water bodies are reservoirs, bodies of water confined within an enclosure such as water held by a factory / plant, artificial lakes or ponds formed or modified by human activity.

7 7 The Rivers Agency: Flood Prevention and Management 21

2.4 The Floods Strategy Steering Group was • remove the membership overlap established to provide cross-departmental between groups; support and strategic direction for the implementation of the EU Floods • reflect restructuring; and Directive and the management of flood emergencies (see Figure 2). This was in • take account of contributions from addition to a large number of other pre- organisations such as Councils, the existing multi-agency Flood and Water NI Fire and Rescue Service (NIFRS) management groupings in Northern and the Police Service of Northern Ireland (see Appendix 2). In our view, Ireland (PSNI). the duplication of membership offers an opportunity to reduce the number of 2.6 In our view, the number of multi- these groupings. agency Flood and Water management groupings may be too large to allow an 2.5 The Rivers Agency told us that these effective, co-ordinated approach. We structures are constantly evolving and the recommend that consideration is given groupings are being rationalised to: to streamlining these groupings.

• reduce the number of liaison meetings;

Figure 2: Floods Directive Governance structure established (post December 2015)

Floods Strategy Steering Group This Group aims to secure cross-departmental support and provide strategic direction for the implementation of the EU Floods Directive and the management of flood emergencies.

North West Neagh Bann North East Flood Forum Flood Forum Flood Forum

These three forums aim to secure local support for, and involvement in, Flood Risk Management Plans that contain appropriate affordable solutions to locally significant flooding problems.

Source: The Rivers Agency 22 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk

The methodologies and risk 2.8 The Detailed Flood Maps for the 69 calculations used to support the areas and the other geographical areas Strategic Flood Map and the Detailed covered by the Strategic Flood Map are Flood Maps are fit for purpose hosted on DARD’s website, within Flood Maps (NI) (see Figure 3) (https://mapping.infrastructure-ni.gov. 2.7 In October 2008 the Rivers Agency uk/FloodMapsNI/index.aspx). published the Strategic Flood Map for Northern Ireland. While this map 2.9 We found that the Strategic Flood was used to locate general areas Map is compliant with the technical at risk of flooding, it was unable to equirements of the EU Floods Directive provide detailed flooding information at and is likely to be useful in development individual property level. The EU Floods planning, promoting and designing Directive requires detailed Hazard and resilience measures, and defence Flood Risk Maps for areas at significant prioritisation. risk of flooding. In response to the Directive, the Rivers Agency developed 2.10 We also found that the approach models (see Case Study 1) to visualise adopted by the Rivers Agency in the how the most significant flood waters preparation of Detailed Flood Maps travel along various pathways and was adequate in covering catchments impact on people, property and down to a small enough scale, and infrastructure. The Rivers Agency in modelling higher risk areas more produced 69 of these Detailed Flood accurately. Maps. The maps have been designed for the Government, utility stakeholders 2.11 Whilst there were some shortcomings in and the public. the Strategic Flood Map, these were not

Case Study 1

The Rivers Agency received an industry award for its use of geographic information system technology.

In July 2011 the Rivers Agency received a Special Achievement Award at the Environmental Systems Research Institute User Conference in San Diego, California, for its Strategic Flood Map for Northern Ireland.

The Rivers Agency map viewer provides location and zoom search features to make it easy for people to find, view and interpret information about their area. The map viewer now attracts regular users, public and private organisations, who can view historical, present day, climate change and flood defence maps.

Source: NIAO based on the Rivers Agency’s documents The Rivers Agency: Flood Prevention and Management 23

Figure 3: Extracts from Flood Maps (NI) indicating areas at risk of surface water flooding and a detailed search result for the south/east area in Belfast

Source: https://riversagency.maps.arcgic.com/apps/webappviewer/index.html 24 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk

significant and are mitigated by the level with other relevant flood risk information, of detail contained in the Detailed Flood will help in flood alleviation, land use Maps which cover the areas of greatest planning and emergency planning work. risk. 2.15 In April 2014, the Rivers Agency 2.12 The Rivers Agency has not subjected improved the way it presents the maps the Strategic Flood Map or the Detailed to the public and stakeholders by Flood Maps developed by external providing: consultants to independent validation. The contract for the development of • an enhanced scale; the maps included comparing the consultant’s technical specifications • access to pre-formatted maps against the Rivers Agency preset quality showing flood extents, depth, assurance criteria. The comparison velocity and flow along channels, was completed by Rivers Agency staff. and flood risk; However, to date, no assessment of these technical specifications has been • an estimate of the number of people undertaken. affected; and

2.13 We recommend that the Strategic Flood • the potential impact on economic Map approach is assessed against the activity. Detailed Flood Maps, for areas where both maps exist, to understand better 2.16 Whilst the Rivers Agency hosted Floods the implications of any weaknesses Directive Stakeholder forums in the within the models. lead-up to the December 2013 target date for completion of the maps, it has not subsequently sought feedback from More could be done to engage with stakeholders. stakeholders 2.17 The Rivers Agency also held meetings 2.14 From 2008 the DARD website made the with Planning Authority to outline that maps publicly available for people to the content of the Strategic Flood Map check if they were in flood prone areas, and the Detailed Flood Maps on the their expected level of flood risk and the DARD Flood Maps (NI) viewer was potential flood range during a flooding being updated. This was to ensure that event. Other government agencies Planning Authority were using the most and key stakeholders with an interest up-to-date flood maps when dealing with or role in the management of flood risk Area Plan development and individual also have access to a more detailed planning applications. The Planning version of the maps. The maps, along Authority provided verbal feedback. The Rivers Agency: Flood Prevention and Management 25

Figure 4: The Strategic Flood Map is unlikely to meet all stakeholders’ needs

Stakeholders’ Information Maps required Weaknesses in Weaknesses in main uses for needed to show the Strategic the Detailed flood maps Flood Map Flood Maps

1. Resilience measures How/where/ Depth and Depths unreliable, None when to install probability extents too property level uncertain to identify measures to reduce specific properties vulnerability - helps which may benefit Rivers Agency focus promotion

2. Planning for Decide where to Extents, to identify Extents too None development develop new/ sites; surface water uncertain to identify existing properties impacts specific properties

3. Emergency Evacuation routes Flood extents, No useful velocities Velocities and and evacuation and timings; safe depths, velocities, or timing possible timings need to be planning havens; scenarios rapidity and with this approach added for realistic duration of flooding exercises

4. Long term strategic Broad scale risk Risk to people and Lower level of None planning estimates property across NI accuracy than and regionally detailed maps

5. Defence and Risk estimates at Extents and depths, Not of sufficient None other flood risk intermediate scale to identify places accuracy management where defences prioritisation could give most benefit

6. Flood warning Which stakeholders Identify places at No useful velocities None delivery and uptake might benefit from a risk, lead times or timing possible warning; targeting with this approach correspondents; prioritising areas; promote uptake

Source: NIAO 26 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk

2.18 With no formal feedback sought by the The recommendations from a 2012 Rivers Agency from its stakeholders, we review of flooding have been undertook a stakeholder analysis (see implemented Appendix 3) which identified six broad uses for the flood maps (seeFigure 4). 2.22 There have been a number of reports into major flooding and other incidents, 2.19 We found that the Strategic Flood Map (see Figure 5). In July 2012, the and the Detailed Flood Maps will be Northern Ireland Executive agreed to useful in planning and implementing carry out a review of the response of resilience measures, planning for government agencies to the severe development, and defence and other flooding of 27 and 28 June 2012. flood risk management prioritisation. The former Performance and Efficiency Weaknesses in the information Delivery Unit (PEDU)8 reviewed the displayed, mainly in the Strategic Flood actions, handling and co-ordination of Map, hamper other uses, in particular the key central government agencies the lack of information suitable for with operational roles in responding emergency and evacuation planning to the flood emergencies, including regarding the speed of the water and the Rivers Agency, NI Water and flood duration (seeFigure 4). The scale TransportNI. PEDU were tasked to at which data is displayed also limits make recommendations to improve application to strategic planning. co-ordination and efficiencies across all government agencies. In addition, 2.20 Based on our review of the stakeholders’ PEDU reviewed the operation of the needs and main uses of the maps, Flooding Incident Line (FIL). we concluded that the Strategic Flood Map is not of sufficient accuracy for 2.23 PEDU reported in September 2012 most of the stakeholders’ needs, but is and made 12 recommendations (see of sufficient accuracy for broad scale Appendix 4) covering investment in strategic needs. The Detailed Flood flooding counter measures, developing Maps are fit for purpose and likely to a NI flood alert system and improving meet stakeholders’ needs. operational flood response. All the recommendations were accepted 2.21 We recommend that the Rivers Agency and allocated to the appropriate reviews the weaknesses identified in organisations. the Strategic Flood Map and Detailed Flood Maps for stakeholders and 2.24 Whilst all of the PEDU recommendations examines the benefits of providing have now been implemented, nine water speed and flood duration recommendations missed their target information suitable for emergency deadlines. and evacuation planning.

8 Performance and Efficiency Delivery Unit (PEDU) was a unit within the former Department of Finance and Personnel which had authority to scrutinise and review, critically, the nature of spending in all areas.

7 8 The Rivers Agency: Flood Prevention and Management 27

Figure 5: A number of major reviews have been carried out into flooding and other incidents

October 2008 Independent Report into the Flooding Incident affecting the Broadway Underpass – Westlink, Belfast on 16 August 2008

January 2009 Belfast City Council Report into Belfast Flooding on 16 August 2008

July 2010 OFMDFM Report of the Flooding Task Force into the Fermanagh Flooding of November 2009

March 2011 Utility Regulator’s Report of the investigations into the Freeze/Thaw incident of 2010/11 presented to the NI Executive in March 2011

June 2012 Belfast City Council June 2012 Flooding Incident Report

November 2012 PEDU Review of Response to Flooding on 27 and 28 June 2012

Source: NIAO

2.25 Progress reports on the PEDU reacting catchment areas and believe recommendations have been presented that there is benefit in working to achieve to the Head of the Civil Service each a better understanding of the trigger year from 2012, with the latest update thresholds for such catchment areas in provided in January 2015. terms of rainfall depth and duration. Flood warning and informing activities suitable for Northern Ireland commenced Weather warning arrangements in in 2013. These improvements to Northern Ireland have been improved flood warning information are being progressed through a four stage plan (see Figure 6). 2.26 Unlike the rest of the UK, Northern Ireland does not have a flood forecasting 2.27 We found that the partnering approach centre. The Rivers Agency told us that between the Rivers Agency and the the flood catchment areas in Northern Met Office is likely to improve the Ireland are smaller than elsewhere in system for flood warning in Northern the UK and any warning time would Ireland. These arrangements continue be much shorter, greatly reducing the to be developed in partnership with the benefit of such a centre. The Met Office Met Office, under a staged approach, told us that it recognised the challenges and supported by a Memorandum of presented by smaller scale, rapidly Understanding. 28 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk

Figure 6: Four stage improvement plan to the Northern Ireland flood warning system

Stage Expected action Result

1 Formal engagement with the Met Office A Memorandum of Understanding Completed in a ‘partnering’ approach to better between the Rivers Agency and the Met information and the impact assessment Office. of National Severe Weather Warning for heavy rainfall. 2 Ensuring adequate ‘informing’ in Creation of the Regional Community Completed relation to flood risk, to enable Resilience Group to identify communities, and reviewed responders and the public to be prepare community resilience plans and by the Red effective in dealing with flooding. agree on information to be shared. Cross 3 Public dissemination of water level Provision of river level warnings, real Ongoing information. time flood alert and gauging data on the Rivers Agency website, where these are likely to be beneficial. 4 Review and development. Consider the need for further refinement, Ongoing taking into account national advances in this area and feedback from community groups and the wider public.

Source: NIAO

2.28 The improvements will principally point of contact (see Figure 7). The benefit river flood warnings, as effective main benefits of FIL are: warnings for heavy thundery downpours, which often result in surface water • the call will be logged and passed flooding, continue to present challenges to the relevant agency; due to their often highly localised nature. • the caller doesn’t have to decide which agency to contact; and Improvements to the Flooding Incident Line have been slow and too many • the call won’t be redirected, nor will calls are abandoned the caller be given other numbers to call.

2.29 The Flooding Incident Line (FIL) was 2.30 During flooding incidents in June 2012, established in 2009 to improve the members of the public reported that way members of the public could report they were unable to get through to FIL, a serious flooding situation to a single with 80 per cent of calls abandoned. The Rivers Agency: Flood Prevention and Management 29

Case Study 2 – Flooding in County Fermanagh during December 2015 and January 2016 The River Erne is over 100 kilometres long, rises in Co. Cavan, flows through Upper and Lower Lough Erne in Fermanagh and onwards to Ballyshannon in Co. Donegal where it enters the sea. The catchment area is over 4,300 square kilometres. Lower Lough Erne has a surface area of 111 square kilometres and is nearly three times the size of Upper Lough Erne. The current system for managing the Loughs was set up in 1950. The levels in the Upper Lough and the inter-lough channel are kept below certain levels. This management balances power generation, flood alleviation, agricultural land use, environmental considerations, tourism and leisure interests. During exceptional periods of prolonged and heavy rainfall, the Loughs’ levels can rise over the set levels. There are two water level control structures on the Erne system: sluice gates at Portora, Enniskillen which are operated by the Rivers Agency in dry conditions and a hydro-electric station at Cliff, Co. Donegal. The gates at Portora control water levels upstream through Enniskillen and into Upper Lough Erne, and are operated by the Rivers Agency in dry conditions to manage water levels through Enniskillen and Upper Lough Erne at its minimum level. In wet conditions the gates are left fully open and have no direct effect on water levels, as the volume of water flowing into the Loughs can be up to three times more than the maximum outflow volumes. Parts of Northern Ireland had record-breaking rainfall during December 2015, which resulted in significant flooding around Lough Erne in Fermanagh. A number of roads remained closed during January 2016. At the start of January 2016 the water level in Upper Lough Erne peaked at 157 feet 11inches, which is almost 3 feet above the prescribed level.

A review carried out following severe flooding in Fermanagh in 2009 concluded that “it would not be economically or environmentally feasible to increase the capacity of the system to a level where flooding from extreme events, such as the November 2009 flooding, could be prevented. Neither would it be feasible to significantly reduce existing water levels, given the detrimental impact this would have on the natural environment and on water based tourism.”

Source: NIAO based on the Rivers Agency’s documents

In December 2012, the former DFP on 2.31 The Rivers Agency has been engaged in behalf of, Enterprise Shared Services9 work to identify potential improvements agreed a new telecommunications to FIL since 2013. To support this work, contract to help improve the public’s Enterprise Shared Services created access to government services, including the FIL Steering Group in 2014 which FIL. Enterprise Shared Services expected meets every two months and includes that this would improve the service by representatives from the Rivers Agency, increasing the number of skilled staff TransportNI and NI Water. who can take calls when incidents occur.

9 Enterprise Shared Services within the Department of Finance provides shared services to the NI government departments and some of their agencies, including Account NI, HR Connect, Records NI, Network NI, the Centre for Applied Learning and IT Assist. 30 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk

2.32 Since 2013, work has been ongoing FIL that will provide them with a higher with Enterprise Shared Services to ensure level of assurance that the FIL telephony that the telephony service is able to meet service will perform effectively should stakeholders’ needs during a significant a major flooding incident occur. These flood event. The FIL stress tests, involving options are currently being considered large volumes of simulated calls, by the three Flood Response Agencies. identified poor performance. 2.36 We recommend that the Rivers 2.33 The FIL performance statistics (see Agency, as chair of the Floods Strategy Figures 7 and 8) show that the calls Steering Group, continues to work with abandoned peaked in 2012 at 27 Enterprise Shared Services to ensure per cent. Figure 8 shows that from the the FIL telephony service meets their, start of the new contract in 2013 the and the public’s needs. abandonment rate has fallen from the 2012 peak, and was below 8 per cent 2.37 The upgrade and development of FIL, in the first two years of the new contract. called ‘FIL 2’ has been included in However, the call abandonment rate the NICS Digital Transformation ‘16 rose to nearly 16 per cent in 2015. by 16’10 online projects. Enterprise Shared Services has started to develop 2.34 The three Flood Response Agencies (see an on-line system to report flooding and Footnote 2) highlighted other problems provide back office communication with with FIL including emergency flood calls the three Flood Response Agencies, hot failing to connect and reports from PSNI spots for calls taken, sand bag locations that they could not get through to FIL on and details on the cessation of the 15 November 2015. DFP have advised incident. that the incident on 15 November is not reflective of the overall service and that 2.38 The three Flood Response Agencies the technical fault causing this issue has told us that they have now agreed that been identified and rectified. Enterprise Shared Services continues to develop the online system in parallel with 2.35 We found that the implementation of improving the resilience of the telephony improvements to FIL has been slow. aspect of FIL. Problems identified in June 2012 were discussed in 2013, a steering group 2.39 We recommend that the relevant was set up in 2014, and improvements agencies reconsider how online are now due to be in place by 2016. technology can be harnessed to better Enterprise Shared Services have meet the public’s needs. provided the three Flood Response Agencies with options for improving

10 The NICS Digital Transformation Programme includes the ’16 by 16’ in which 16 online projects are planned to be delivered by April 2016. While the initial commitment is for 16 services, more than 30 citizen facing services are being worked on as part of the programme.

7 10 The Rivers Agency: Flood Prevention and Management 31

Figure 7: The total number of calls handled and abandoned by Flooding Incident Line peaked in 2012

,00 00

,000 90

0 ,00

0 ,000 0 2,00 0 2,000 0

Number of calls handled ,00 0 Percentage of calls abandoned ,000 20

00 0

0 0 2010 2011 2012 2013 2014 2015

Calls referred to TransportNI Calls referred to Rivers Agency Calls referred to NI Water

Non-Flooding calls received Abandoned call percentage

Source: NI Direct

Figure 8: Too many calls to the Flooding Incident Line are abandoned

Total Calls Calls Abandoned Received Calls Abandoned Calls Answered % 2010 2,054 164 1,890 8.0% 2011 3,027 458 2,569 15.1% 2012 5,846 1,577 4,269 27.0% 2013 2,857 216 2,640 7.6% 2014 3,775 297 2,985 7.9% 2015 2,532 398 2,134 15.7%

Source: NI Direct 32 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk

There are effective structures, processes in place at a strategic guidance and protocols in place level among the flood response to allow relevant stakeholders to organisations. collaborate during flooding incidents 2.42 We found that during a flooding event there are effective structures, guidance 2.40 The Rivers Agency, as the designated and protocols in place to allow effective lead agency during flooding incidents, collaborative working which are routinely is responsible for developing and tested and improved. leading emergency planning exercises. For example, in November 2013 the Rivers Agency conducted a major tidal The Rivers Agency is proactive in flood response exercise in the Belfast improving resilience to flooding within area, attended by 179 specialists in Northern Ireland, especially in areas emergency response. The Rivers Agency subject to repetitive flooding told us that the learning from this exercise greatly enhanced the speed of response when the scenario arose in January 2.43 The Rivers Agency has undertaken a 2014 with the threatened inundation number of schemes aimed at increasing of Sydenham, the Belfast Docks and community resilience to flooding. various other parts of NI. Around £80,000 per annum has been committed to the development of 2.41 The Rivers Agency also has a key role in flooding resilience. the multi-agency Flood Strategy Steering Group which meets quarterly to: 2.44 During 2014, a Regional Community Resilience Group (see Appendix 2) pilot • develop strategies to improve flood scheme commenced, to identify and response; engage with ten communities (see Figure 9) at risk of flooding to help them be • provide direction to some of better prepared (see Case Study 4). The the Flood Working Groups review of the pilot scheme, completed (see Appendix 2) linked to the by the Consumer Council and the Red Emergency Planning Groups which Cross, concluded that the pilot scheme deal with issues at an operational had been successful, with more than level; monitor and review the 70 per cent of residents indicating that effectiveness of flood response they felt better informed and prepared during and following major events; for flooding. The review determined and ensure that there are effective that the work of the Regional Community communication channels and Resilience Group should continue. The Rivers Agency: Flood Prevention and Management 33

Figure 9: Ten communities selected to pilot the engagement to build community resilience to flooding scheme

Broughshane

Ahoghill

Coalisland Beragh

Fintona larger scale below Banbridge

There are four communities within the greater Belfast area

Sydenham

Braniel/Whincroft

Cregagh

Finaghy area (Sicily Park)

Source: British Red Cross and the Consumer Council’s Review of the Regional Community Resilience Group pilot 34 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk

The issue of resourcing needs to be addressed to determine the rate at which the initiative can be rolled out to other communities.

2.45 The Rivers Agency developed a business case for an Individual Property Protection Scheme, called the Homeowner Flood Protection Grant Scheme, on behalf of the Floods Directive Steering Group. This £1 million scheme was launched in January 2016 to assist families whose homes are at risk of flooding. Home owners eligible for the scheme will receive a 90 per cent grant, up to a maximum of £10,000, towards the cost of installing equipment to protect their homes.

2.46 The Homeowner Flood Protection Grant Scheme includes an information and awareness campaign to promote the benefits of property-level flood protection, provide homeowners with technical support and grant financial assistance to fit protection to their homes. It has been agreed that the Homeowner Flood Protection Grant Scheme, will be available to the owners of all residential properties located within high-risk flood areas and which are unlikely to benefit from publicly-funded community-level flood mitigation solutions within five years of their application. The Rivers Agency: Flood Prevention and Management 35

Case Study 3 – In January 2016 the water level on Lough Neagh was at an almost 100 year high Lough Neagh, with an area of over 150 square miles, is the largest lake in Ireland. Around 40 per cent of the land area of Northern Ireland is drained into the Lough by many tributaries, including six rivers. Lough Neagh’s level is controlled by floodgates at Toomebridge in County Antrim, which were fully opened in early November 2015.

November 2015 was the fourth wettest since 1910, and December 2015 was the wettest on record and often stormy, including storms Desmond, Eva and Frank. These repeated storms put pressure on the Lough peaking at over 13 metres on 8 January 2016, more than a metre above the statutory maximum level. This is the highest recorded level in almost 100 years.

During the first week of January 2016, a small number of properties around Lough Neagh were flooded, including some businesses which were badly impacted.

Water levels only began to recede in the second week of January 2016.

Source: NIAO

Case Study 4 – Practical examples of resilience building The Regional Community Resilience Group engaged with 10 flood risk communities and delivered some of the following, where appropriate: • an agreed community plan; • sandbag stores established; • local volunteers registered with the Met Office’s detailed Hazard Manager System; • agreed pumping locations; • ‘Flood Ahead’ traffic warnings provided to residents; • Flood Warden Scheme; • at-risk culvert grilles identified, mapped and inspection responsibilities allocated to local volunteers; • river station alerts have been installed in relevant locations and alerts to be sent to volunteers; and • household packs - ‘medicine in a bottle’ packs and NI Water’s stop valve tags were provided free to the residents.

Source: NIAO based on Red Cross and Consumer Council evaluation report 36 The Rivers Agency: Flood Prevention and Management

Part Two: Identification of Flood Risk Part Three: Implementation and Maintenance of the Rivers Agency’s Flood Prevention Assets

Upper Lough Erne, near Shanaghy and Derryad townlands, November 2009. Photograph courtesy of the Rivers Agency. 38 The Rivers Agency: Flood Prevention and Management

Part Three: Implementation and Maintenance of the Rivers Agency’s Flood Prevention Assets

3.1 This part of our report examines Planning Authority to consult with other the Rivers Agency’s performance in relevant bodies, including Rivers Agency, identifying, developing and maintaining where prevailing information suggests flood prevention assets to reduce the risk that flood risk or inadequate drainage of flooding. is likely to be a material consideration. One limitation of the maps, in respect of planning, is the time period represented The Strategic Flood Map and the by climate change, which is unlikely to Detailed Flood Maps are useful for be sufficient to cover a development’s development planning, promoting and lifetime. designing resilience measures, and flood defence prioritisation Case Study 5 – Planned 3.2 The Rivers Agency aims to reduce development site in a floodplain flood risk by preventing inappropriate development within floodplains. The flooded December 2015 Rivers Agency’s Planning Advisory The site of a £50million retail development, Unit provides advice to each of the on a floodplain, near Strabane, was under local councils’ planning offices11 on two feet of water as a result of storm Desmond the drainage and flood risk aspects in December 2015. The development site is of Development Plans and planning situated near the rivers Finn, Mourne and Foyle. applications, commensurate with the need to prevent inappropriate or unsustainable development in floodplains or elsewhere. This aims to avert any increase in risk to life and damage to property and the environment through flooding, as noted in the Strategic Planning Policy Statement12 (SPPS), published in September 2015.

3.3 We found the Strategic Flood Map and Detailed Flood Maps (see Paragraphs 2.9 to 2.24) are fit for purpose in supporting the implementation of the SPPS, as they allow properties and sites Photograph source: The Rivers Agency. at risk of flooding to be identified. While the identification of surface water risk is uncertain the SPPS requires the

11 On 1 April 2015, the Department of the Environment transferred responsibility for the majority of planning functions to local government, empowering local councils to shape how their area grows and develops. The Department of the Environment retained responsibility for: determination of regionally significant and ‘called-in’ applications; regional planning policy; planning legislation; oversight and guidance for councils; and performance management. 12 Planning Policy Statement 15 (PPS15), Planning and Flood Risk, was revised and published in September 2014. It has since been consolidated and reflected in a strategic way within the Strategic Planning Policy Statement for Northern Ireland (SPPS), published September 2015. The revised PPS15 is being retained under the transitional arrangements, as set out in the SPPS.

31 12 The Rivers Agency: Flood Prevention and Management 39

3.4 We found the 2030 future scenario The group behind the development are satisfied presented by the Strategic Flood that its proposed measures will prevent any Map and Detailed Flood Maps is future flooding. Following the flooding, the unlikely to be long enough into the group’s engineers reviewed their proposed future to represent flooding risk over method for tackling the flooding issue which a development’s lifetime, which could included reinforcing and recontouring lands typically be 50 -100 years. We surrounding the rivers. The project manager recommend that the Rivers Agency added that flood mitigation measures should consult with the Planning would include a widening of local rivers Authority to determine if the maps to accommodate a larger volume of water meet their needs and how they could and there is a strong case for the water- be improved, if cost effective to do so. walls in Strabane to be extended around the development site.

During the planning process, the Rivers Agency The Rivers Agency’s assessment indicated that this site lies with the 1 in 100 of capital schemes could be less year floodplain of the Mourne and Foyle Rivers. subjective However, the Planning Authority determined that this application was regionally significant and 3.5 The Rivers Agency subjects potential therefore was permitted under Planning Policy floodalleviation schemes (see Figure Statement 15 (PPS15), with mitigation. 10 for example schemes) to a feasibility study, including an economic appraisal The building of a 90 bed hotel, supermarket, and placed on a prioritisation list. The sports and well-being centre, garden centre, relevant Detailed Flood Map is used to employment park and petrol station is due to estimate likely property damage from a start in 2016. range of flood events. The estimated cost of a scheme is then compared to Source: NIAO the ‘total avoidance benefits’13 over the scheme’s life.

13 Total avoidance benefits are based on the avoidance of losses which would have occurred had the scheme not been implemented.

31 13 40 The Rivers Agency: Flood Prevention and Management

Part Three: Implementation and Maintenance of the Rivers Agency’s Flood Prevention Assets

Figure 10: A variety of flood defences were constructed in response to flooding in Co. Tyrone during 2011

Sheet pile Core Floodbank – Beragh, Sheet Pile/Reinforced Concrete Flood Wall – Co. Tyrone. Constructed as part of the Beragh Beragh, Co. Tyrone. Constructed as part of the Flood Alleviation Scheme in 2014-2015. Beragh Flood Alleviation Scheme in 2014-2015.

Flood protection is provided by the steel sheet Flood protection is provided by the sheet pile core set at the designed flood level. The piles driven below ground level to provide a pile core is then overlaid with soil and sown with foundation. A reinforced concrete floodwall is grass for aesthetics to provide the finished flood then cast on top of the sheet piles to provide embankment. protection to the designed flood level. The Rivers Agency: Flood Prevention and Management 41

Masonry Flood Wall - Beragh, Co. Tyrone. Reinforced Concrete Cantilever Flood Wall - Ballygawley, Co. Tyrone. Constructed as part of the Beragh Flood Alleviation Scheme in 2014-2015. Constructed as part of the Ballygawley Flood Alleviation Scheme in 2013. Flood protection is provided by a concrete masonry blockwork floodwall constructed to the Flood protection is provided by a reinforced required elevation. In this case the floodwall was concrete floodwall cast on site to the designed clad with brick to provide an aesthetic finish as flood level. the floodwall is located within the garden of a domestic property.

Source: The Rivers Agency 42 The Rivers Agency: Flood Prevention and Management

Part Three: Implementation and Maintenance of the Rivers Agency’s Flood Prevention Assets

3.6 The Rivers Agency told us that its planning blight and repair difficulty; scheme prioritisation procedures and ensure consistency, as each scheme is • a financial control score which assessed against five criteria, in order of assigns a higher score to cheaper importance: measures. • existing degree of protection; 3.7 We evaluated these prioritisation • structural category / risk of collapse procedures against a set of criteria, of an existing culvert; developed for us by our consultant, based on their experience and practice • economic appraisal score; elsewhere in the UK. We found a • special considerations, which include number of areas for improvement (see potential for negligence claims, Figure 11).

Figure 11: The Rivers Agency’s prioritisation procedures for flood protection measures do not meet some of NIAO’s expected criteria

Criteria How well Reasons criterion is met Covers appropriate Well Covers flooding from rivers and the sea which are the responsibility sources of flooding of the Rivers Agency. Covers lifetime of Well Lifetime costing is a requirement within NI Guide to Expenditure defence Appraisal and Evaluation guidance methodology. Reflects strategic Partially From Living with Rivers and the Sea: The opportunities for a more priorities holistic approach to flood risk reduction through the consideration of catchment-based solutions to flooding will be explored. This measure is not covered. Promotes Partially There are no specific sustainability requirements included and sustainability we note that NI Guide to Expenditure Appraisal and Evaluation guidance includes some sustainability criteria, but these are likely to be discounted significantly. Reduces subjectivity Partially Why the decision is reached is clear through scoring system, but some scores are subjective i.e. special considerations and consequences of culvert collapse. Includes appropriate Partially Property, people, and the environment should be covered, these range of impacts are NI Guide to Expenditure Appraisal and Evaluation guidance requirements; emphasis on cost benefit ratios focuses on economics. Covers appropriate Not met A limited number of flood risk management measures identified as range of measures the Rivers Agency responsibilities are addressed by the procedure. Uses proportionate Not met The full cost benefit analysis method is specified and this may not be methods proportionate for the screening exercise. However, a pre-feasibility stage is used to screen out projects which will be non-viable and uses a ready reckoner instead of the full cost benefit. Source: NIAO The Rivers Agency: Flood Prevention and Management 43

3.8 We found some further strengths of the Our review of flood defence projects prioritisation procedure, for example, the found cost overruns financial control score promotes small schemes, which is likely to be a good 3.12 Over the last five years the Rivers way of spreading a limited budget, in Agency has invested nearly £33 million preference to concentrating the money in the construction of new flood defence in a few, large schemes. The score assets, improving protection to 694 awarded for the existing degree of households by completing 20 projects. protection promotes schemes where We reviewed documents detailing the there is currently a high risk of flooding, selection, project management and post whether these have a good cost benefit project evaluations (PPEs) for a number ratio or not. This is a good way of of capital projects (see Appendix 5) addressing ‘nuisance flooding’ which is undertaken by the Rivers Agency. We associated with significant, but difficult to found: quantify, impacts. • business cases / economic 3.9 In our view the process could be less appraisals supporting the projects subjective, especially around the award comply with the majority of NI of scores for ‘special considerations’, Guide to Expenditure Appraisal and which appear to be subjective. They Evaluation guidance requirements; take account of issues such as the potential for negligence claims, planning • projects were subject to appropriate blight and repair difficulty. We found progress reviews and reporting; and that points awarded to projects in this • projects were subject to post project manner can have an impact on the evaluation, concentrating on actual prioritisation of individual schemes at the cost against budget and meeting expense of other projects. expected deadlines. 3.13 Our review of PPEs completed by the 3.10 Our review also included an assessment Rivers Agency found that two projects of the suitability of the information and had significant cost overruns: data generated by the maps to support the Rivers Agency’s decision making. • New flood walls at Moneymore We found that the data required for were completed at a cost of £2.2 capital spend prioritisation is available million, an 85 per cent increase in through the Detailed Flood Maps, at an the estimated cost of £1.2 million. appropriate scale. The increase in cost was due to a low initial estimate for the works, an 3.11 We found that the Strategic Flood increase in the extent of the works Map and the Detailed Flood Maps are undertaken, and the fact that the capable of supporting the capital project contract was undertaken when the prioritisation procedure. economy was buoyant, hence prices 44 The Rivers Agency: Flood Prevention and Management

Part Three: Implementation and Maintenance of the Rivers Agency’s Flood Prevention Assets

were inflated well above normal • Choice of procurement method not (detail at Appendix 5); and optimum • A section within a project at the –– The report found that in some Mount Vernon stream in Belfast, cases the procurement method estimated at £189,000, was is not fit for purpose, creates completed at a cost of more than an administrative burden, £590,000, 231 per cent over is time consuming and is budget, due to less accurate and disproportionate to the value of very optimistic initial estimates and the project. greater uncertainty at conceptual • Cost difference between the design stage (detail at Appendix 5). pre-tender cost estimate and the 3.14 Our review of PPEs for projects construction outturn cost constructed between 2007-08 and –– The report found that this is 2014-15 found that the majority of generally caused by a lack of projects finished over budget, by time accurate site information, design and / or cost (see Figure 12 and changes on-site, and protracted Appendix 6). project management. Figure 12: Most of Rivers Agency’s capital projects • Delays due to re-visiting the feasibility finished over time or budget between study at the detailed design stage 2007 and 2015 –– The report found this was Capital Capital Capital caused by a failure to identify projects projects projects all the associated risks; a need finishing over finishing over finishing over to update information in the time or budget time only budget only feasibility study; and the cost of 8 out of 13 6 out of 13 4 out of 12** works being underestimated. 62 % 46 % 33 % • Excessively low tender prices **one project, not yet completed, has exceeded its expected time but not its budget. –– The report found the main reasons were: poor site and Source: NIAO based on the Rivers Agency figures works information; the contractor not fully understanding the scope 3.15 In December 2015 the Rivers Agency of the construction; the contractor reported that it had reviewed the submitting claims for necessary findings of post project evaluations, or extra work not covered in to identify lessons learnt and make the scope; and a high level of recommendations on how future schemes competition. could improve delivery and value for money. The report concluded that there • Inadequate stakeholder/landowner was potential for efficiency improvements agreements by addressing several issues: –– The report explained that this occurs when there is a different The Rivers Agency: Flood Prevention and Management 45

interpretation of the Lands Agree- profiling of budgets. Account NI ments, the land owner reneges contains information on individual on the signed Land Agreement, projects but it does not contain sufficient and there is difficulty accessing detail to allow for monitoring. the land. 3.20 The individual project managers retain 3.16 The Rivers Agency report on PPEs the detail of each project. The Rivers includes solutions to these issues. Agency Operations Director meets However, it will take a number of years with the project managers each month, to determine if the suggested solutions reviews the overall programme and are effective in reducing the increased makes the adjustments to the delivery costs and time delays. plan, as necessary.

3.17 We found the flood defence capital 3.21 The Rivers Agency told us that it has projects’ cost-benefit assessments are previously considered and decided robust and consistent with NI Guide to against using a project management Expenditure Appraisal and Evaluation software tool, due to the small number of guidance. However, we recommend projects. that the Rivers Agency should ensure that PPEs, tailored to the size of the 3.22 We recommend that the Rivers Agency project, are completed in a timely routinely reviews the effectiveness of manner and any lessons learned, the project management information including the reasons why projects to ensure it meets its needs, provides exceed budget, are disseminated as detail on the project stages and soon as possible. considers what improvements a project management software tool could add. 3.18 We also recommend that the causes of the budget and time overruns, which have been already identified by the The cost of responding to, and Rivers Agency, are used to develop an damage caused by, serious flooding action plan to reduce future delays and incidents is unknown cost overruns. 3.23 The Rivers Agency has established Whilst the Rivers Agency’s methodologies for estimating the annual average damage for each building management accounting system within the Strategic Flood Map and can identify each major project, it is Detailed Flood Maps and the estimated unable to provide detail on the stages cost of the impact on the health of these within each project sufferers of floods. The aggregated annual average damage in NI (without 3.19 The Rivers Agency’s main financial climate change) is expected to be £291 accounting system is Account NI14 which million. This figure comprises river facilitates the monthly monitoring and

14 Account NI is a shared service centre providing a financial processing service for all NI government departments and 18 other public bodies. The services provided include: checking and paying invoices and making grant payments; reconciling bank accounts; issuing invoices on behalf of departments and administering debt management; maintaining accounting records; developing management reports; and reimbursing staff travel and expenses claims.

31 14 46 The Rivers Agency: Flood Prevention and Management

Part Three: Implementation and Maintenance of the Rivers Agency’s Flood Prevention Assets

(£117 million), coastal (£33 million), Figure 13: More than £4 million has been paid in and surface water (£140 million) Hardship Fund payments combined. The aggregated annual Number of Total amount average damage of £291 million properties paid (£) increases to £341 million when the awarded the effects of climate change are included. Hardship Fund These annualised figures reflect the range of floods that may occur over a 2007-08 1,172 1,172,000 very long term - in many years there may 2008-09 1,603 1,603,000 be no damage at all. In others there may 2009-10 60 60,000 be damage higher than that estimated 2010-11 6 6,000 above. 2011-12 121 121,000 3.24 In June 2007 the NI Assembly 2012-13 978 978,000 introduced an emergency payment 2013-14 63 63,000 scheme for householders affected by 2014-15 238 238,000 flooding, known as the Hardship Fund. 2015-16 52* 52,000* A £1,000 payment was made to Total 4,293 4,293,000 householders who had suffered severe inconvenience as a result of flooding, Source: NIAO based on the Rivers Agency data as an offer of practical assistance to *These are provisional figures supplied by Department of ensure that homes were made habitable Agriculture, Environment and Rural Affairs as quickly as possible. It is not a 3.27 The Rivers Agency’s Strategic Flood compensation payment. The Hardship Map and Detailed Flood Maps can Fund is administered by local councils estimate the damages for predicted and funded by the Department of the flood events. However, we found that Environment. to date there is no estimate of the total cost to the Northern Ireland government 3.25 In March 2016 the NI Executive agreed or economy resulting from past major to extend the Hardship Fund to assist flooding events. farmers and small businesses affected by flooding during the winter of 2015-16. The Rivers Agency has an ongoing These non-domestic properties, including cycle of inspection, assessment and sports facilities, community halls and churches, will be eligible for the £1,000 intervention which aims to ensure the payment administered by local councils. effective functioning of flood defence assets 3.26 To 31 March 2015, over £4.2 million had been paid to over four thousand 3.28 The Rivers Agency has an annual budget households (see Figure 13), including of approximately £24 million with 313 households receiving multiple building and maintaining flood defences payments for different incidents. (see Paragraph 1.3) accounting for 86 per cent (see Figure 14). The Rivers Agency: Flood Prevention and Management 47

Figure 14: Over 85 per cent of the Rivers Agency’s budget was spent in maintaining existing and building new flood defences (2014-15 figures)

14%

33% Maintaining eisting flood defences

ilding ne and replacement flood defences 22% alaries for maintaining and ilding flood defences Administrative costs

31%

Source: NIAO based on the Rivers Agency’s figures

3.29 The Rivers Agency is developing an IT inspections of the below ground assets model for different budget allocations and £1.3 million capital budget for to be represented in assets’ conditions asset renewal and upgrading to maintain in future years. The Rivers Agency the below ground assets to the current estimates it needs an annual resource expected condition. budget of over £1.1 million for the

Figure 15: While the Rivers Agency’s total expenditure has increased by 16 per cent, capital expenditure has increased by more than 40 per cent since 2010-11

% increase

between 2010-11 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 and £000 £000 £000 £000 £000 £000 2015-16 Resource Budget 14,512 14,892 15,126 15,968 15,215 15,601 7.5 Capital Budget 6,157 6,047 6,299 7,505 8,686 9,089 47.6 Total 20,669 20,939 21,425 23,473 23,901 24,690 19.5 Source: The Rivers Agency 48 The Rivers Agency: Flood Prevention and Management

Part Three: Implementation and Maintenance of the Rivers Agency’s Flood Prevention Assets

3.30 We found that the Rivers Agency has an ongoing cycle of inspection, assessment and intervention to ensure the effective functioning of assets (see Paragraph 1.3). We also recognise that the Rivers Agency needs to work within its budgets, which may prove difficult if the budgets are cut during this period of financial uncertainty and austerity. Appendices 50 The Rivers Agency: Flood Prevention and Management

Appendix 1: (Paragraph 1.15)

Our Consultant’s terms of reference

1 We commissioned a consultant to assist us in assessing the technical capability of the Flood Risk Maps developed by the Rivers Agency to satisfy the requirements of the EU Floods Directive.

2 Regarding the Strategic Flood Risk and Hazard Map (NI) the consultant was commissioned to:

• determine if the Strategic Flood Risk and Hazard Map (NI) satisfies legislative and policy requirements; • assess the ease of use / fitness for purpose of the Strategic Flood Risk and Hazard Map (NI) in: –– encouraging people living and working in flood prone areas to take appropriate action; and –– providing information in a form likely to be of value to key users e.g. planners, utility pro- viders, transport • This assessment should include a comparison with best practice example(s) identifying significant differences and suggesting improvements; and • provide a summary of these findings and possible / relevant recommendations.

3 Regarding the ‘Predictive Computer Modelling Techniques’ and data supporting the Strategic Flood Risk and Hazard Map (NI), the consultant was commissioned to:

• assess whether the Predictive Computer Modelling Techniques, supporting the maps, are fit for purpose, whether the data used is appropriate, and whether any underlying assumptions are reasonable; • include a comparison with suitable best practice example(s), identifying significant differences and suggesting improvements; and • provide a summary of these findings and possible / relevant recommendations.

4 Regarding the Rivers Agency’s identification and prioritisation of its programme of flood defence schemes and flood protection measures, the consultant was commissioned to:

• assess the methodology used by the Rivers Agency to identify and prioritise flood defence projects and flood prevention measures; • assess the extent to which the Strategic Flood Risk and Hazard Map (NI) is capable of supporting better decision-making on the Rivers Agency’s future programmes of flood defence projects and protection measures; and • provide a summary of these findings and possible / relevant recommendations. The Rivers Agency: Flood Prevention and Management 51

Appendix 2: (Paragraph 2.4) Coastguard NIAS NIHE Met Office BT NIE Local Harbours Coastguard NIAS NIHE Met Office BT NIE Local Harbours Coastguard NIAS NIHE Met Office BT NIE Local Harbours Coastguard NIAS NIHE Met Office BT NIE Local Harbours Others NIEA • • • • • • • • • • • • • • • • • • • • • • • • • • • •

NI Direct / FIL NIFRS PSNI Multi Agency Water / Agency Water Multi Local Government Emergency Management Group DCAL OFMDFM DOE DRD DARD

NI Water

Transport NI Rivers Agency Frequency of Meetings Quarterly Quarterly Quarterly Quarterly Quarterly Group Flood Response Groups Flood Strategy Steering Group Emergency Planning Group, Flooding sub group for North Emergency Planning Group, Flooding sub group for South Emergency Planning Group, Flooding sub group for East Emergency Planning Group, Flooding sub group for West Multi Agency Water / Flood Management Groups in Northern Ireland Multi Agency Water Flood Management Groups in Northern Ireland 52 The Rivers Agency: Flood Prevention and Management

Appendix 2: (Paragraph 2.4) Coastguard NIAS NIHE Met Office BT NIE Local Harbours Red Cross Consumer Council MoD NIE PHA NIHE Met Office Red Cross Consumer Council MoD NIE PHA NIHE Met Office Others • • • • • • • • • • • • • • • • • • • • •

NI Direct / FIL NIFRS PSNI Local Government Emergency Management Group DCAL

OFMDFM DOE DRD DARD

NI Water

Transport NI Rivers Agency Frequency of Meetings Quarterly Every 4 months Complete contact as and when required Quarterly Three times a year Group Emergency Planning Group, Flooding sub group for Belfast Community Resilience Groups Regional Community Resilience Group Local Community Flood Resilience Forums (initially 10 Forums) Flood Mitigation Groups Flood Investment and Planning Group Floods Directive Groups Floods Strategy Steering Group The Rivers Agency: Flood Prevention and Management 53 Freshwater Taskforce NILGA Association of British Insurers Loughs Agency NI Environment Agency Ulster Farmers Union Consumer Council Local Government Representative Environmental Groups Conservation Groups Angling Group Local Community Groups Association of British Insurers Ulster Farmers Union NI Environment Agency NI Environment Agency Loughs Agency AFBI NGOs Local Community Groups Others • • • • • • • • • • • • • • • • • • •

NI Direct / FIL NIFRS PSNI Local Government Emergency Management Group DCAL OFMDFM DOE DRD DARD

NI Water

Transport NI Rivers Agency Frequency of Meetings a Twice year Three times a year 3 to 4 times a year 3 to 4 times a year a Twice year Group Floods Directive Stakeholder Group Local Flood Forums (3 in total) Framework Directive Groups Water Framework Water Directive Interdepartmental Board Framework Water Directive Interdepartmental Implementation Group Catchment Stakeholder Groups (9 in total) 54 The Rivers Agency: Flood Prevention and Management

Appendix 3: (Paragraph 2.18) Types sources Types of flood water information required Extent - depths Extent - depths Extent - velocity - depths Extent - depths accurate levels Probabilities of flood required All All Not related to natural flood probability All Scale required Individual location Individual location Community River reach - community

What they need from maps/data GIS layer to intersect with their own data; overview maps at same RP for planning GIS layer to intersect with their own data; overview maps at same RP for planning Identify floodplain at risk from specific reservoir; roads liable to flooding Probability of flooding; economic risk and people affected; areas already protected by defences

What they want to know Identify threat to lines and infrastructure; prioritise protection measures; plan for disruption Identify threat to lines and infrastructure; prioritise protection measures; plan for disruption Identify impacts of uncontrolled release of water; plan for disruption (e.g. affecting access to reservoir) Prioritisation for defence works; assess benefits of maintaining or building defences

Stakeholder Power infrastructure managers Telecomms infrastructure operators Reservoir operators Drainage Council for NI Stakeholders identified by NIAO for flood risk management in Northern Ireland Infrastructure Public Sector The Rivers Agency: Flood Prevention and Management 55 Types sources Types of flood water information required Extent – depths – velocity/ flowpaths Extent – depths Extent Extent Extent - depths velocity Extent - depth velocity Probabilities of flood required All High All All High - medium All Scale required Individual location Street Community - regional – national Regional – national Individual properties – street Street – community What they need from maps/data GIS layer to intersect with NI data; overview maps Water at same RP for planning; duration of flooding. Locations and timing of flooding; key culverts for maintenance Overview at large scale of flooding; numbers of people and properties at risk Overview at large scale of flooding; numbers of people and properties at risk Identify schools and catchment at risk; how many neighbouring properties affected Areas which could benefit from defences; risk reduction to properties and people What they want to know Identify risks to infrastructure assets; prioritise protection measures; plan for operational impacts and disruption of service delivery; identify pollution sources and impacts Identify priority areas for maintenance; plan for disruption Overview of how flooding affects their responsibilities Overview of how flooding affects its responsibilities; long term risk; economic impact and likely spending requirements Plan for disruption; evacuation routes; schools which may be required as reception centres Support defence prioritisation; design defences; support long-term investment decisions

Stakeholder NI Water Local Councils NI departments NI Assembly Education Authority Rivers Agency 56 The Rivers Agency: Flood Prevention and Management The Rivers Agency: Flood Prevention and Management 56

Appendix 3: (Paragraph 2.18) Types sources Types of flood water information required Extent - depths velocity Extent - depths velocity Extent - depths velocity Extent - depths velocity Probabilities of flood required High - medium High - medium All Low- medium Scale required Individual properties - street Individual properties - street Street - community Street - community As per Rivers Agency What they need from maps/data Identify homes at risk; evacuation routes, time of rise, depths/hazard Identify sites at risk on map; evacuation routes; duration of flooding Identify sites at risk on map; evacuation routes; duration at flooding Broad areas and numbers affected; evacuation and access routes

What they want to know Support the Rivers Agency work Plan for disruption; evacuation routes Impacts for casualties; loss of services; contingency planning Evacuation and access routes; identify their own sites at risk; general emergency planning Number of people at risk; where resources are needed Stakeholder Consultants Care/ residential homes Health providers - hospitals and surgeries Emergency responders Red Cross Health and Public Safety Sector The Rivers Agency: Flood Prevention and Management 57 Types sources Types of flood water information required Extent – depth - duration Extent - depth velocity Extent - depth Probabilities of flood required High - medium High - medium High - medium Scale required Individual site - street Individual site - street Individual site - street

What they need from maps/data Identify sites at risk; identify evacuation/alternative routes; duration of flooding GIS layer to intersect with their own data; overview maps at same RP for planning; duration of flooding GIS layer to intersect with their own data; overview maps at same RP for planning; duration of flooding What they want to know Identify which sites and lines are at risk; prioritise protection; plan for disruption; removal of vehicles to safety; alternative routes Identify roads at risk; prioritise protection; plan for disruption; plan detours; incident management; damage to non-moveable infrastructure e.g. bridges, embankments Identify lines at risk; prioritise protection; plan for disruption; damage to non- moveable infrastructure e.g. bridges, embankments Stakeholder Bus operators TransportNI (formerly Roads Service) Rail operator Transport Sector Transport 58 The Rivers Agency: Flood Prevention and Management

Appendix 3: (Paragraph 2.18) Types sources Types of flood water information required Extent - depths secondary Extent - depths Extent – duration - water quality All Extent - depths velocity N/A Probabilities of flood required All - high for incident planning, low for insurance All High - medium All All Scale required Individual property - street community Individual location Field scale Community - regional Individual property - street What they need from maps/data Identify own business and risk on map; do same for main suppliers and clients; general risk in staff/customer catchment area Identify sites at risk on map; warning lead times; flood levels Which land floods often; water quality/salinity Metadata on flood maps Advice on how to use the flood maps; same as householders Identify if their home is at risk; probability/depth of flooding; identify evacuation routes; rise time and duration; water quality/salinity What they want to know Whether their property is at risk; whether insurance is required; to plan for disruption to business/ customers/suppliers Plan conservation works for key sites; plan for disruption/ removal for easily damaged items Identify which land is at risk; plan for disruption; select crop/livestock types Ensure consistency across borders Provide advice on where to get flood information Identify risk of flooding; make emergency plan if at risk; identify evacuation routes; adopt resilience measures Stakeholder Business owners / managers / employees Conservation NGOs/ Charities/Trusts Landowners/ farmers/NFU Neighbouring Country Consumer Council Householders Others The Rivers Agency: Flood Prevention and Management 59 Types sources Types of flood water information required Extent - depths Extent - depths Extent Probabilities of flood required 1%/0.5% as specified in PPS 15 High-medium All Scale required Individual properties/ sites - streets Individual properties - portfolio Regional - national What they need from maps/data Whether specific site is in planning policy statement band; probability of flooding; source of flooding for sewer water management Identifying specific properties at risk; portfolio risk - duration of flooding; depth/ probability of flooding for resilience Numbers of properties at risk; probabilities What they want to know Identify sites suitable for development; assess planning implications; drainage planning; site access Planning for when properties become uninhabitable; resilience measures Overview of risk in NI; estimate portfolio risk; not to be used for setting premiums or excesses Stakeholder Property developers Private/public landlords Insurers Source: NIAO 60 The Rivers Agency: Flood Prevention and Management

Appendix 4: (Paragraph 2.23)

The PEDU report, published in September 2012, made 12 recommendations as follows:

Investment in Flooding Counter Measures It is recommended that Rivers Agency, TransportNI and NI Water work with their parent departments to review current flood defence expenditure priorities and report to the Executive on their adequacy to meet the potential threats over the next 10 years. By whom: Rivers Agency, TransportNI, NI Water and parent departments. By when: December 2012 Current status: implemented Developing a NI Flood Alert System A good deal of information on drainage patterns and flood hot spots is already available within the flood response agencies. It is recommended that this resource is investigated to see how it could be used with Met Office forecasts to identify local threats. Even if the previous offering was not suitable, looking again at the “virtual” partnering with the Met Office in line with the SEPA model would be a useful start. By whom: Rivers Agency By when: March 2013 Current status: implemented It is recommended that when considering the options for building a local flood alert and forecasting service, consideration should also be given to how flood alerts can be best communicated to responding organisations and the public. By whom: Rivers Agency By when: March 2013 Current status: implemented Improving Operational Flood Response A key structural reason behind the question of who should be lead government department arises because Rivers Agency is in DARD while the TransportNI and NI Water are within DRD. In this context it is recommended that consideration is given to the consolidation all of the flood response organisations under one departmental ambit – i.e. by the transfer of Rivers Agency from DARD to DRD. By whom: OFMDFM, DARD, DRD By when: November 2012 Current status: implemented It is acknowledged that local government in Northern Ireland is currently undergoing a period of substantial reform initiated by the Review of Public Administration. While recognising this context it is recommended that OFMDFM give urgent consideration to proposals for formalising the role of local government in Northern Ireland in civil contingency matters. This should include consideration to extending Resilience Fora across the full width of local government. By whom: OFMDFM By when: November 2012 Current status: implemented The Rivers Agency: Flood Prevention and Management 61

Improving Operational Flood Response (continued) On 27th June the average call duration to FIL was 4 minutes and 32 seconds. While this does not appear excessive, it is essential that the telephone scripts of FIL are no longer than they need to be, and we note that FIL and the three organisations have been working together with a view to streamlining the process – it is recommended that this process should be accelerated.

By whom: FIL, Rivers Agency, TransportNI, NI Water By when: January 2013 Current status: implemented In the context where local councils are given a statutory emergency planning and protection role it is recommended that a process is developed whereby calls to FIL for property and personal assistance can be immediately relayed to local councils.

By whom: FIL, OFMDFM By when: March 2013 Current status: ongoing While flood notifications received by FIL are immediately passed to other organisational systems, in some cases there is also a need to contact a duty officer by telephone to alert them to the fact that the notices have been sent and need attention. While NI Water officials have some limited access to mobile communications that allow them to access FIL notices immediately, this is not the case in the TransportNI and Rivers Agency. It is recommended that the three Flood Response Agencies and FIL explore options for improved electronic communications.

By whom: FIL, Rivers Agency, TransportNI, NI Water By when: December 2012 Current status: implemented It is recommended that Rivers Agency completes its work on Individual Property Flood Protection Using Resistance and Resilience Measures urgently and incorporates it into a comprehensive strategy, for consideration by the Executive. This work should specifically include the promotion of self-help initiatives, and consideration of a scheme to help householders flood-proof their property.

By whom: Rivers Agency By when: March 2013 Current status: implemented Exercise Eluvies was scheduled for a re-run in 2014. Given the experience of June 2012 it is recommended that consideration is given to running the next exercise sooner, and that tests and exercises should be held more frequently until evidence of improved responses in real situations is evident.

By whom: Rivers Agency, OFMDFM By when: December 2012 Current status: implemented 62 The Rivers Agency: Flood Prevention and Management

Appendix 4: (Paragraph 2.23)

Improving Operational Flood Response (continued) To make use of the momentum given to this issue by the recent floods, it is recommended that the relevant lead departments come together to produce a consolidated action plan for all of the reports’ recommendations (see annexes 6-8) for implementing the improved flood defence framework. This work should also embrace the recommendations of this report.

By whom: Rivers Agency (lead role) By when: November 2012 Current status: implemented It is also recommended that PEDU should review the consolidated action plan and report on its implementation to the Executive in March 2013.

By whom: PEDU By when: March 2013 Current status: implemented Source: The Rivers Agency The Rivers Agency: Flood Prevention and Management 63

Appendix 5: (Paragraph 3.13)

To ensure the Rivers Agency was complying with the requirements of NI Guide to Expenditure Appraisal and Evaluation guidance we selected four capital projects, see below, compared the supporting business cases against the NI Guide to Expenditure Appraisal and Evaluation guidance’s requirements, and reviewed the progress reports and PPEs. Details of the projects selected

Project 1 Moneymore-Moneyhaw River. This project involved the provision of new flood walls adjacent to existing housing developments in the village. The estimated cost was £1.2 million. The aim was to provide flood protection to the two recently constructed housing developments where various planning issues had led to a much lower level of protection being provided to the housing. The actual spend was £2.2 million, an 85 per cent increase due to low initial estimate for the works, extent of the works increased, contract was undertaken when the economy was buoyant hence the prices were inflated well above normal. Project 2 Mount Vernon Stream, Belfast. This was a culvert renovation works to three separate watercourses within the Greater Belfast Area. Estimated Actual Cost Cost Initial estimates including Cost Outturn Increase (£) Increase construction programmes (£) (£) (%) tended to be less accurate, as there was greater uncertainty Ferndeen 128,329 209,598 81,269 63 at conceptual design / stream problem identification stage. The costings were based on numerous isolated repairs and included basic assumption on Rochester 298,785 353,331 54,546 18 the condition of un-surveyed Avenue sections of the network. It stream was concluded that initial construction programmes were optimistic. Perhaps the Consultant did not Mount 188,950 591,637 402,687 213 give sufficient consideration Vernon to the potential disturbance stream and constructability of these proposals and the rates were incorrect. This change for the original proposals accounts for the considerable increase in the outturn costs compared to feasibility estimates. While some of the increase in costs were due to various agreed compensation events. 64 The Rivers Agency: Flood Prevention and Management

Appendix 5: (Paragraph 3.13)

Project 3 Maghera (Co Down) Flood Alleviation Scheme involves the construction of a clay cored flood bank. The estimated cost is £67,826, using the Rivers Agency direct labour force.

This project was completed one day ahead of schedule. The project with a budget of £67,826 completed with an actual of £33,500, equating to a 51per cent decrease.

Project 4 Four Mile Burn Alleviation Scheme at Parkgate, includes the Hollybank Road flood protection block work floodwall at a cost of £713,226 with expected benefits of £1,386,583. While the Grange Road scheme involves constructing a new flood wall at a cost of £129,197 with expected benefits of £156,313.

Source: NIAO based on The Rivers Agency’s documents The Rivers Agency: Flood Prevention and Management 65

Appendix 6: (Paragraph 3.14)

Capital Projects constructed between 2007-08 and 2014-15 with a completed post project evaluation

Scheme Start Date Completion Date Cost

East Belfast Greenway Phase 1 July 2013 September 2014 £1,700,000 (Managed by Belfast City Council)

East Belfast, Merok Burn January 2015 July 2015 £297,971

Carrickfergus, Sullotober Water Phase 2 September 2011 August 2012 £260,000

Carrickbawn, Rostrevor November 2009 September 2012 £54,950

Cappagh, Mill Burn August 2009 October 2011 £26,868

Edenduff Cottages, Randlestown March 2010 December 2011 £102,000

Ballygawley, St Ciaran’s School January 2013 September 2013 £1,694,017

Castlewellan, Annsborough February 2013 June 2013 £132,500

Magherafelt, Highfield Road November 2010 August 2011 £683,950

Magherafelt, Ballymoghan April 2007 November 2007 £558,136

Maghera Flood Alleviation Scheme January 2012 October 2012 £33,500

Coleraine, Lodge Burn January 2011 June 2012 £2,992,706

Coleraine, Portna Sluice Gates October 2010 March 2013 £1,227,710 Refurbishment

Source: The Rivers Agency 66 The Rivers Agency: Flood Prevention and Management

NIAO Reports 2015-2016

Title Date Published

2015

Continuous improvement arrangements in policing 17 February 2015 Cross-border broadband initiative: the Bytel Project 03 March 2015 Protecting Strangford Lough 31 March 2015 DRD: the effectiveness of public transport in Northern Ireland 21 April 2015 General Report on the Health and Social Care Sector 2012-13 and 2013-14 26 May 2015 Local Government Auditor’s Report – 2015 23 June 2015 Department of Education: Sustainability of Schools 30 June 2015 The Northern Ireland Events Company 29 September 2015 Financial Auditing and Reporting: General Report by the Comptroller and Auditor General for Northern Ireland - 2015 24 November 2015 Invest to Save 15 December 2015

2016

Governance of Land and Property in the NI Housing Executive 7 January 2016 Continuous Improvement Arrangements in Policing 8 March 2016 Local Government Code of Audit Practice 31 March 2016 The National Fraud Initiative: Northern Ireland 7 July 2016 Managing Legal Aid 21 June 2016 Contracted Training Programmes 28 June 2016 Published and printed by CDS

CDS 160139

ISBN 978-1-911003-46-5

9 781911 003465 Appendix HOA2

Published and printed by CDS The National Fraud Initiative: CDS 156169 Northern Ireland

ISBN 978-1-911003-33-5

REPORT BY THE COMPTROLLER AND AUDITOR GENERAL 7 July 2016 9 781911 003335 The National Fraud Initiative: Northern Ireland

Published 7 July 2016

This report is being published under Article 4E of the Audit and Accountability (Northern Ireland) Order 2003.

K J Donnelly Northern Ireland Audit Office

Comptroller and Auditor General 7 July 2016

The Comptroller and Auditor General is the head of the Northern Ireland Audit Office. He and the Northern Ireland Audit Office are totally independent of Government. He certifies the accounts of all Government Departments and a wide range of other public sector bodies; and he has statutory authority to report to the Assembly on the economy, efficiency and effectiveness with which departments and other bodies have used their resources.

For further information about the Northern Ireland Audit Office please contact:

Northern Ireland Audit Office 106 University Street BELFAST BT7 1EU

Tel: 028 9025 1100 email: [email protected] website: www.niauditoffice.gov.uk

© Northern Ireland Audit Office 2016

The National Fraud Initiative: Northern Ireland

Contents

Page

Foreword 1

Executive Summary 3

Part One: NFI Outcomes

Reducing fraud and error makes good business sense 10

The NFI is a valuable tool for tackling fraud and error 10

The range of datasets matched helps to detect fraud and error in a number of key areas 10

NFI 2014-15 is the fourth NFI exercise in Northern Ireland 11

Organisations should use a risk based approach when selecting matches for investigation 11

Continuing to investigate matches when no fraud and error is being found is an inefficient and ineffective use of resources 12

The current NFI exercise has resulted in significant outcomes 12

The most significant monetary outcomes are secured in relation to housing benefit, pensions and rates 12

Outcomes can also be qualitative and provide positive assurance 13

Successful prosecutions have been secured against fraudsters 13

Information on successful prosecutions is not routinely shared with fraudsters’ employers 14

Significant outcomes continue to be secured in key areas 15

Housing Benefit 15

Social Housing 16

Domestic Rates 17

Occupational Pensions – Deceased Pensioners 17

Occupational Pensions – Pensioners returning to work 18

Payroll 19 The National Fraud Initiative: Northern Ireland

Contents

Trade Creditors 20

Private Supported Care Home Residents 20

Concessionary Travel Passes 21

Blue Badges 21

A pilot exercise on Lone Pensioner Allowance produced valuable outcomes and has been incorporated into the main NFI exercise 22

Two new pilot exercises have been undertaken as part of NFI 2014-15 23

Part Two: Using the NFI more effectively

The commitment of participating organisations to the NFI is key to ts success 26

Organisations must adopt a robust but measured approach to NFI investigations to make the most of finite resources 26

The value of data matching can be enhanced by effective communication between participating organisations 26

There is still evidence of inefficiencies in how some organisations undertake their NFI work 27

Fraud risks are constantly evolving and a sound counter fraud strategy, of which the NFI is part, is essential for all organisations 28

The vast majority of participating organisations have sound arrangements in place in relation to the NFI 29

There are examples of both good and poor practice by participating organisations 29

Part Three: NFI Developments

Responsibility for the NFI now rests with the Cabinet Office 32

A move towards fraud prevention is a key deliverable for the NFI 32

The NIAO continues to implement its strategy for the development of the NFI in Northern Ireland 32

The scope of the NFI will be extended through pilot data matches 33 The National Fraud Initiative: Northern Ireland

The NIAO remains indebted to Cabinet Office NFI colleagues for their support in implementing the NFI in Northern Ireland 33

Appendix 1: Total NFI outcomes in Northern Ireland to date 36

Appendix 2: Overview of the National Fraud Initiative 37

Appendix 3: Participating Bodies 38

Appendix 4: Formulae for calculating outcomes, including forward savings 40

Appendix 5: Audit assessment of organisations’ NFI arrangements 41 The National Fraud Initiative: Northern Ireland

ContentsAbbreviations

BBIS Blue Badge Improvement Service

BSO Business Services Organisation

C&AG Comptroller and Auditor General

DDRI Disclosure of Death Registration Information

DfC Department for Communities

DfI Department for Infrastructure

DoF Department of Finance

DPA Data Protection Act

DWP Department for Work and Pensions

GRO General Register Office

LPA Lone Pensioner Allowance

LPS Land and Property Services

NFI National Fraud Initiative

NIAO Northern Ireland Audit Office

NICS Northern Ireland Civil Service

NIHE Northern Ireland Housing Executive

NILGOSC Northern Ireland Local Government Officers’ Superannuation Committee

SSA Social Security Agency

UK United Kingdom

VAT Value Added Tax Foreword 2 The National Fraud Initiative: Northern Ireland

Foreword

Public sector organisations in Northern Ireland continue to face ever tighter budget constraints. Fraud impacts on the level of funding available for front line services, so fighting fraud must remain a key element in ensuring that limited public funds for the provision of goods and services are maximized. Fraud affects us all and we all pay the price. It is up to each public sector body to remain committed to challenging those who seek to abuse public funds by fraudulent means.

Under statutory powers inserted in the Audit and Accountability (Northern Ireland) Order 2003 by the Serious Crime Act 2007, I am able to undertake data matching exercises for the purpose of assisting the prevention and detection of fraud. These powers have strengthened the fight against fraud. The main data matching tool used is the National Fraud Initiative (NFI).

The Assembly’s Public Accounts Committee has endorsed the NFI as “a key tool in the armoury against fraud and error”. The continued commitment of Northern Ireland public sector bodies to the Initiative has helped to maximize its impact and while many organisations do not identify direct outcomes, the inclusion of their data in the NFI contributes to the identification of wider savings for the public sector as a whole.

This is the fourth NFI exercise to be undertaken in Northern Ireland. I wish to publicly thank all those involved in the review and investigation of data matches for the essential work that they do. Once again, that work has proved fruitful in identifying a significant level of fraud and error.

NFI outcomes in Northern Ireland now stand at almost £33 million, representing current and past fraud stopped and potential future fraud averted. Nationally, outcomes from data matching through the NFI stand at over £1 billion.

I continue to implement a strategy for widening the scope of the NFI in Northern Ireland and would encourage all public sector organisations to come forward with proposals for further potential data matches that could help in the prevention and detection of fraud.

Kieran Donnelly Comptroller and Auditor General Executive Summary 4 The National Fraud Initiative: Northern Ireland

Executive Summary

Partnership working allows cross-jurisdictional data matching under the NFI

1. The National Fraud Initiative (NFI) is a major data matching exercise undertaken every two years. This is the fourth exercise to be undertaken in Northern Ireland, with over 100 organisations from across central government, local government and the health sector participating.

2. Cross-jurisdictional data matching through the NFI means that the data of over 1,300 organisations across England, Scotland, Wales and Northern Ireland is compared, in order to highlight inconsistencies which could indicate fraud.

The success of the NFI depends on the commitment of participating organisations

3. Participating organisations in Northern Ireland must be commended for their continued commitment to the NFI.

Outcomes to date show the value of data matching

4. Total NFI outcomes1 for the first four exercises in Northern Ireland are almost £33 million (see Appendix 1). Between 1 April 2014 and 31 March 2016, local participation in the NFI resulted in outcomes of £3.1 million (see Figure 1), including:

• almost £1.5 million of pensions fraud and overpayments;

• over £1.2 million of housing benefit fraud and overpayments; and

• over £330,000 of rates evasion.

5. The outcomes comprise actual outcomes of over £1.6 million and estimated outcomes of over £1.4 million (see footnote 1).

6. In addition to quantified benefits, the NFI can also highlight duplication or inconsistencies in data which can be corrected by organisations, providing qualitative benefits and leaving bodies less vulnerable to fraud.

1 Outcomes include the value of incorrect payments (due to fraud or error) which are stopped, and an estimate of future savings achieved by no longer making these incorrect payments. The National Fraud Initiative: Northern Ireland 5

Figure 1: Key Outcomes from the fourth NFI exercise

Outcomes of £1,466,748 from 36 cases

Pensions

Outcomes of Outcomes of Payroll Benefit £11,053 and £1,249,692 Fraud from 13 cases other from 407 cases Outcomes £3,112,521 Outcomes of Outcomes of

£19,943 Care Rates £333,360 from 1 case homes from 66 cases

Creditors

Outcomes of £31,725 from 28 cases 6 The National Fraud Initiative: Northern Ireland

Executive Summary

A number of organisations are still over-investigating

7. Most participating organisations have participated in four cycles of NFI data matching and have refined their approach to reviewing and investigating matches, concentrating on high risk areas and recommended matches. However, some organisations are still over-investigating. Organisations are not expected to investigate all matches but should base their work on a fraud risk assessment and knowledge of key fraud risks.

8. The Northern Ireland Audit Office (NIAO) continues to monitor the approach of participating organisations through examination of data match reports on the secure NFI website and discussion with key personnel as appropriate.

Many participating organisations continue to embed the NFI in their counter fraud work

9. The following examples of good practice show how some participating organisations use the NFI as part of their counter fraud control environment:

• the NFI is included as a standing agenda item for the Audit Committee, with reporting to the full Board or Council as appropriate;

• the NFI investigation plan is approved by the Audit Committee before work commences;

• NFI results are used to inform Internal Audit plans;

• the NFI is a standing agenda item for the Counter Fraud Working Group;

• the NFI, in particular the appropriate review and investigation of matches, is included as a performance objective for the Director of Finance; and

• NFI results are built into the organisation’s overall plans for identifying and minimising potential fraud and duplicate payments.

Areas remain where practice could be improved in some instances

10. Previous NFI reports have identified areas where organisations could be more efficient and effective in how they implement the NFI and these still apply, in particular: The National Fraud Initiative: Northern Ireland 7

• Over-investigation of matches remains an issue (see paragraph 7). There is no audit requirement to investigate all matches. The level of investigation should be guided by a fraud risk assessment. Investigations should not continue if no fraud or error is being found.

• More use could be made of the report comment facility within the NFI web application, to save time entering comments against individual matches where there are no outcomes to record.

• Working offline should be kept to a minimum. Working within the secure web environment is more efficient and does not compromise the security of personal data.

• Key contacts2 should regularly review progress on matches and ensure that they are being reviewed, investigated and closed appropriately. There is some evidence of matches being opened and then left for long periods with no activity.

• Key contacts should ensure that outcomes, including qualitative outcomes such as corrections to national insurance numbers, are correctly recorded in the NFI web application so that the full value of the NFI can be reflected in the regional report.

• Key contacts and users should review the comments shared by organisations on the other side of the match. Reviewing and responding to comments in a timely way may be a better use of resources than continuing to investigate matches where no fraud and error is being found.

The NIAO will continue to develop the NFI in conjunction with public audit partners

11. The Cabinet Office NFI Team which administers the Initiative continues to develop the scope of data matching, with an increasing focus on fraud prevention. The NIAO continues to work with participating organisations in Northern Ireland to consider how any developments can be applied locally.

12. In addition, the NIAO has a strategy which sets out how coverage of the NFI can be expanded in Northern Ireland, in terms of both additional participants and inclusion of additional datasets. It continues to take this strategy forward.

2 Key contacts are the individuals primarily responsible for the NFI within participating organisations.

Part One: NFI Outcomes 10 The National Fraud Initiative: Northern Ireland

Part One: NFI Outcomes

Reducing fraud and error makes good business sense

1.1 Public sector losses due to fraud and error impact directly on taxpayers, ratepayers and service users by diverting valuable resources away from front line services. Preventing and detecting fraud makes good business sense and is an essential part of maximizing front line resources.

1.2 Public sector organisations must protect public funds by having a strong anti-fraud culture and effective strategies for tackling fraud and error. Potential fraudsters must be made aware of this anti-fraud culture and the consequences of any fraudulent activity.

The NFI is a valuable tool for tackling fraud and error

1.3 The National Fraud Initiative (NFI) is a major data matching exercise undertaken every two years (see Appendix 2 for more detail). It compares sets of data submitted by a wide range of organisations and highlights inconsistencies which could indicate fraud or error. Participation by organisations in England, Scotland, Wales and Northern Ireland is a major advantage of the NFI, allowing cross-jurisdictional matching.

The range of datasets matched helps to detect fraud and error in a number of key areas

1.4 Participating organisations submit a range of datasets including payroll, pensions, trade creditors, housing benefit, blue badges, concessionary travel passes, taxi driver licenses, private supported care home residents and domestic rates.

1.5 Figure 2 gives examples of the types of matches undertaken and the potential fraud or error they may reveal. The National Fraud Initiative: Northern Ireland 11

Figure 2: Examples of data matches

Data match Potential fraud or error

Payroll to payroll Employee working elsewhere while on sick leave

Housing benefit to payroll Claimant not declaring income which may remove or reduce entitlement to benefit

Pensions to death records Pension fraudulently or erroneously paid where the pensioner has died and pension administrator has not been notified

Blue badges to death records Fraudulent use of badge where badge holder is deceased

Private supported care home Care home continuing to receive payments after the resident’s death residents to death records

NFI 2014-15 is the fourth NFI exercise in Northern Ireland

1.6 NFI 2014-15 involved participation by 110 Northern Ireland public sector organisations (see Appendix 3). Northern Ireland data was matched with data from around 1,200 further organisations in England, Scotland and Wales.

1.7 A data match highlights an inconsistency which may require further investigation to confirm that no fraud is present. There may be an acceptable reason for the match. The majority of matches were made available to participating organisations via the secure NFI website in January 2015. Organisations had 12 months to aim to complete any investigative work. Any outcomes from uncompleted investigations will be captured and reported as part of the next NFI exercise.

Organisations should use a risk-based approach when selecting matches for investigation

1.8 Organisations are not expected to investigate all matches. They should base their investigative work on a fraud risk assessment and knowledge of key local fraud risks. Matches provided to organisations via the NFI are prioritised through the application of parameters, resulting in a number of “recommended filter matches”. Ideally, these should be reviewed and investigated where appropriate but participating organisations can reprioritise matches based on their known fraud risks.

1.8 12 The National Fraud Initiative: Northern Ireland

Part One: NFI Outcomes

1.9 The Northern Ireland Audit Office (NIAO) has recently published a good practice guide on managing fraud risk3 which sets out how organisations should assess, prioritise and address fraud risks (see paragraph 2.9).

Continuing to investigate matches when no fraud and error is being found is an inefficient and ineffective use of resources

1.10 A number of organisations continue to over-investigate. If no fraud or error is found after reviewing and investigating the recommended filter matches (see paragraph 1.8), it is unlikely that further work will produce outcomes. If an additional small sample of non-recommended matches produces no outcomes, there is little to be gained by continuing to investigate.

The current NFI exercise has resulted in significant outcomes

1.11 Between 1 April 2014 and 31 March 2016, Northern Ireland bodies identified outcomes4 of £3.1 million, comprising late outcomes from the previous exercise of over £833,000 and outcomes to date from the current exercise of over £2.2 million5.

The most significant monetary outcomes are secured in relation to housing benefit, pensions and rates

1.12 The nature of the data being matched means that, as in previous NFI exercises, the majority of outcomes have been secured by those organisations which administer housing benefit, pensions and rates. However, there have also been around £52,000 of outcomes in relation to trade creditors and private supported care home residents.

1.13 Many participating organisations secure no direct monetary outcomes from participating in the NFI. However, the inclusion of their data is essential to achieve monetary outcomes in key areas such as housing benefit and pensions, as illustrated in Figure 3.

3 Managing Fraud Risk in a Changing Environment: A Good Practice Guide, NIAO, November 2015 4 The outcomes include both actual fraud and error detected plus estimated forward savings where appropriate. Estimates are included where it is reasonable to assume that fraud and overpayments would have continued undetected without NFI data matching. The basis of calculation of these estimated figures is set out at Appendix 4. 5 The Cabinet Office reports every two years on outcomes at the relevant 31 March. This report uses the same basis for Northern Ireland. The National Fraud Initiative: Northern Ireland 13

������������������������������������������������������������������������������������������� Figure 3: Reverse match outcomes

Ø The data of one organisation which had no direct monetary outcomes contributed to 28 housing benefit outcomes, totalling over £17,000, for the NI Housing Executive and the Department of Finance. Ø The data of one organisation which had no direct monetary outcomes contributed to one housing benefit outcome worth almost £10,000, through an address match. Ø The data of one organisation which had no direct monetary outcomes contributed to a pension abatement outcome of over £5,000. Source: NFI 2014-15 web application ������������������������������������������������������������������������������������������� Outcomes can also be qualitative and provide positive assurance

1.14 Organisations which have few matches, or find no fraud or error in the matches they investigate, can take this as positive assurance in relation to their internal control environment and their Annual Governance Statement.6 The NFI also contributes to improved data quality through, for example, the correction of national insurance numbers and the removal of duplicate creditor references, thereby reducing the risk of fraud in the future. In the current exercise, 63 national insurance numbers have been corrected within organisational records.

1.15 It is important that qualitative outcomes, such as the correction of national insurance numbers, are properly recorded within the web application. Good quality data is essential for good quality data matching and the NFI plays a valuable role in highlighting where improvements are required.

1.16 Organisations’ data matches provide invaluable intelligence, and assurance, in relation to counter fraud work, particularly because the cross-jurisdictional coverage of the NFI provides access to data for matching that local organisations would not otherwise have.

Successful prosecutions have been secured against fraudsters

1.17 Once again a number of successful and significant prosecutions have been secured as a result of NFI data matching, as outlined in the following case examples:

Case Example 1

An NFI address match identified a person who failed to declare they were living with a partner. Overpayment of benefits amounted to £57,000 over a period of five years. The person was sentenced to six months’ imprisonment, suspended for one year. A recovery plan is in place.

Source: Social Security Agency

6 The Annual Governance Statement replaced the Statement of Internal Control in 2010-11. All departments, agencies and arm’s length bodies must prepare them. They bring together all disclosures relating to governance, risk and control. 14 The National Fraud Initiative: Northern Ireland

Part One: NFI Outcomes

Case Example 2 An NFI data match identified a person with an undeclared occupational pension and an undeclared partner. Overpayment of benefits in a five year period amounted to over £33,000. The claimant was sentenced to 12 months’ imprisonment, suspended for three years. A recovery plan is in place. Source: Social Security Agency

Case Example 3 A data match revealed that a person had been working for a public sector organisation while claiming housing benefit and jobseekers’ allowance. Overpayment of benefits in a six year period amounted to more than £22,000. The person was sentenced to a community service order. A recovery plan is in place. Source: Social Security Agency

Information on successful prosecutions is not routinely shared with fraudsters’ employers

1.18 If a public servant is convicted of fraud, the onus is on them to notify their employer of this. If the fraud is committed against a public authority, that authority has no obligation to notify the fraudster’s employer.

1.19 A number of public sector employees have been convicted of significant benefit fraud over the years as a result of the NFI. However there is still no consistent approach to ensure that employers are notified. The main prosecuting authority in relation to benefit fraud in Northern Ireland, the Social Security Agency (SSA)7, publicises convictions for benefit fraud on its website and in the local press, but does not share such information directly with employers.

1.20 There remains a strong conviction among the key partners in Northern Ireland – the NIAO, the Department of Finance (DoF)8 and the Department for Communities (DfC - see footnote 7) – that sharing information about convicted fraudsters is the right thing to do. At present, however, there is no clear guidance as to how this can be done without a breach of legislation. The DfC has particular concerns about data protection and inequality in relation to notifying employers.

1.21 While the NIAO has confirmed with the Information Commissioner that the Data Protection Act (DPA) is not a barrier to the sensible disclosure of information such as fraud convictions, the Commissioner’s advice is that organisations considering making disclosures would need to consider these on a case by case basis to avoid any unlawful disclosure of information. In these circumstances, it is difficult for the DoF to issue guidance. Consequently, despite considerable efforts on all sides, this matter remains unresolved.

7 Following departmental restructuring in May 2016, the Social Security Agency was subsumed into the new Department for Communities (DfC). 8 Formerly the Department of Finance and Personnel. Departmental restructuring came into effect on 9th May 2016. The National Fraud Initiative: Northern Ireland 15

1.22 This is deeply unsatisfactory. Without action, the risk remains that a public body may inadvertently continue to employ a convicted fraudster in a position of trust. The C&AG is committed to seeking a solution to this and will engage once more with the DoF, the DfC and the Information Commissioner to resolve the issue.

Significant outcomes continue to be secured in key areas

1.23 The following paragraphs summarise key findings in more detail. Outcomes figures include late outcomes from the 2012-13 exercise and estimated forward savings (see footnote 4).

Housing Benefit

1.24 People on low incomes may receive help with their rent by way of housing benefit.9 Fraud and error can occur when calculations are based on inaccurate information, for example where:

• the claimant does not declare a source of income; or

• the claimant does not declare a change of circumstances, e.g. additional residents at the address.

The NFI matches housing benefit records to datasets such as public sector payroll and pensions, student loans and housing tenancies in order to detect such inaccuracies.

1.25 Housing benefit makes up a large proportion of the fraud and error identified through the NFI in Northern Ireland. The current exercise has identified 407 cases of housing benefit fraud, error and overpayment totalling £1.2 million.

Case Example 4 A match between housing benefit records and student loan records identified a person who had been claiming housing benefit and jobseekers allowance but was ineligible for these benefits. Overpayment of benefits amounted to £32,000 over a five year period. The person was sentenced to five months’ imprisonment, suspended for two years. A recovery plan is in place. Source: Social Security Agency

9 The Northern Ireland Housing Executive (NIHE) administers housing benefit for those who rent their homes. Land and Property Services (LPS) administers housing benefit for those who own and occupy their own homes. 16 The National Fraud Initiative: Northern Ireland

Part One: NFI Outcomes

Case Example 5 An NFI data match revealed a person who had an undeclared occupational pension but was claiming a range of benefits including housing benefit. Further investigation revealed that the person was also working. Overpayments amounted to £19,000 over a five year period. The person was sentenced to 24 weeks’ imprisonment, suspended for two years. A recovery plan is in place. Source: Social Security Agency

Case Example 6 A data match showed that a person was receiving housing benefit in relation to two properties. Investigations revealed that they had vacated one of the properties in 2010. Overpayment of housing benefit amounted to almost £5,500. Recovery is in progress. Source: Land and Property Services

Case Example 7 A homeowner claiming housing benefit failed to declare student loan income, which affected eligibility. Overpayment of housing benefit amounted to almost £1,500. The amount is being recovered. Source: Land and Property Services

Social Housing

1.26 The cost of social housing tenancy fraud in Northern Ireland has not formally been quantified. In GB it is estimated that two per cent of social housing properties may be occupied fraudulently; this would equate to over 2,000 properties if the same percentage applied in Northern Ireland.

1.27 Data matching under the NFI helps to detect tenancy fraud by identifying where a person appears to be resident at two properties and is therefore potentially subletting one property unlawfully. It can also detect where a tenant is unlawfully resident in Northern Ireland and therefore has no entitlement to the property.

1.28 In Northern Ireland, the majority of social housing (around 88,000 properties) is owned and managed by the NI Housing Executive (NIHE). The remainder (around 32,000 properties) is managed by 21 registered housing associations.10 NIHE and two of the biggest housing associations submit their tenancy data to the NFI, accounting for almost 104,000 properties between them.

10 Northern Ireland Housing Market Review and Perspectives 2015-18, NI Housing Executive The National Fraud Initiative: Northern Ireland 17

1.29 No monetary outcomes, in terms of value of properties recovered, have been recorded but a significant number of data quality issues have been identified where incorrect national insurance numbers were held and had to be amended. These corrections improve data quality, reduce the risk of fraud and minimise the chance of false matches occurring in future NFI exercises.

Domestic Rates

1.30 Domestic rates are a property tax based on the valuation of a residential property and are payable by the occupier (or landlord in certain circumstances). Rates are administered by Land and Property Services (LPS).

1.31 Rates records are matched to the electoral register to identify cases where a property may not have been registered for rates, and also cases where there is a significant time difference between the registration dates on both systems, indicating possible rates arrears due.

1.32 In the current exercise, 66 cases of rates avoidance were detected, totalling just over £333,000.

Case Example 8 NFI data matching identified a property which was not on Land and Property Services’ (LPS) rating system. A bill has been issued to recover outstanding rates dating back to 2007, amounting to more than £11,500.

Source: Land and Property Services

Case Example 9 NFI data matching identified a property which LPS was unaware of. Outstanding rates dated back to 2009 and amounted to around £11,100. The occupant did not dispute this and has repaid the amount in full.

Source: Land and Property Services

Occupational Pensions – Deceased Pensioners

1.33 The NFI matches pension information to deceased records provided by the Department of Work and Pensions (DWP), and to Disclosure of Death Registration Information (DDRI) from the General Register Office (GRO). This matching is known as mortality screening. 18 The National Fraud Initiative: Northern Ireland

Part One: NFI Outcomes

1.34 Fraud and error in relation to deceased pensioners can occur where relatives do not notify the death of a pensioner and so a pension continues to be paid. Six public sector pension paying bodies11 submitted pension data for mortality screening. Investigation of pensions to deceased matches has highlighted 33 cases of fraud or error resulting in outcomes of just over £1.2 million.

Case Example 10 A pensioner died in February 2014. The pension administrator was not notified and only became aware of the death through an NFI data match. Payments totalling £2,226 had been made by cheque after the date of death. The cheques had not been cashed so when the overpayment was identified, the value of the cheques was reinstated. Source: NILGOSC

Case Example 11 An NFI data match released in January 2015 showed the date of death of a pensioner as August 2014. Overpayment of pension amounted to almost £3,500. The pension paying body wrote to the family and eventually received confirmation from the pensioner’s son, who was the executor of the pensioner’s will, that the amount would be repaid in full when the estate was finalised. The full amount has now been repaid. Source: NICS Pensions

Occupational pensions - Pensioners returning to work

1.35 Pension records are matched to payroll records to identify cases of pensioners returning to work without notifying the pension paying body, thereby avoiding a reduction (abatement) in pension. In the current exercise, three such cases were identified, with outcomes totalling over £224,000.

11 Northern Ireland Civil Service (NICS) Pensions; Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC); Teachers’ Pensions; Health Pensions; Northern Ireland Fire and Rescue Service Pensions; and Assembly Pensions. The National Fraud Initiative: Northern Ireland 19

Case Example 12 A data match showed that a former employee of a public sector organisation who was in receipt of an ill health pension had been re-employed in the same sector since 2006, at which date pension eligi- bility ceased. The pension paying body had not received the necessary notification. Overpayment of pension amounted to almost £75,000. Recovery is ongoing. In a similar case, an ill health pension continued to be paid after re-employment ended eligibility; again the pension paying body had not been notified. Overpayment of pension amounted to £150,000 over a period of almost 10 years. Recovery is ongoing. Source: Department of Education

1.36 Inclusion of pension data in the NFI has also contributed to housing benefit outcomes. Of the 407 housing benefit cases with outcomes (see paragraph 1.25), 148 were as a result of pension income not being declared on the benefit application.

Payroll

1.37 The NFI matches payroll data across all participating organisations, and with Home Office information, to identify cases of employment fraud, in particular:

• employees working for one body while on long-term sick leave from another;

• employees with two jobs where shift patterns overlap, so that it would not be possible to cover both jobs; and

• employees with no entitlement to live or work in the UK.

1.38 Thirteen cases of payroll fraud or error have been identified with outcomes of just over £11,000.

1.39 Inclusion of public sector payroll data in the NFI also contributes to housing benefit outcomes. Of the 407 housing benefit cases with outcomes (see paragraph 1.25), 104 were as a result of income being undeclared by a public sector employee or their co-habiting partner. 20 The National Fraud Initiative: Northern Ireland

Part One: NFI Outcomes

Trade Creditors

1.40 Trade creditors’ data matching within the NFI helps organisations to identify duplicate payments and incorrect VAT calculations. In addition it can highlight cases where system improvements or “housekeeping” are needed, for example the removal of duplicate creditor reference numbers.

1.41 In the current exercise, organisations have identified 28 cases involving monetary error totalling over £31,000. In a further 114 cases, action has been taken to correct non-monetary errors, such as a duplicate creditor reference number. Such corrections reduce the chance of fraud and error occurring in future.

1.42 Figure 4 sets out examples of creditor outcomes. �������������������������������������������������������������������������������������������

Figure 4: Trade Creditor Outcomes

Ø One department recovered three duplicate payments amounting to £4,500. Ø One department recovered a duplicate payment amounting to £2,900. Ø One health and social care trust recovered a duplicate payment amounting to £2,800. Ø One regional college recovered two duplicate payments amounting to £3,900. Source: NFI 2014-15 web application ��������������������������������������������������������������������������������������������

Private Supported Care Home Residents

1.43 Health trusts may pay all or part of private care home fees for older people. If care homes fail to notify trusts, either fraudulently or erroneously, that a resident has died, payments may continue after the death. The NFI matches trusts’ private care home payments records to death records, in order to identify such cases.

1.44 In the current exercise, one significant error was found where a fee continued to be paid for more than two years after the date of death (see Case Example 13). The National Fraud Initiative: Northern Ireland 21

Case Example 13 An NFI data match between private supported care home residents and death records showed that a client of the Trust had died in June 2013 but the care home had not notified the Trust. The client was a private placement and the Trust paid £100 per week to the home for the client’s nursing care, in line with statutory regulations. Contrary to the terms of the contract in place, the home failed to identify on its monthly remittances that the client had died. The resulting overpayment by the Trust was £12,943. The Trust has recovered the full amount. Source: Western Health and Social Care Trust

Concessionary Travel Passes

1.45 Concessionary travel is available to people aged 60 and over for travel in Northern Ireland, aged 65 and over for All Ireland Free Travel, and to others with certain mobility or medical issues (half fare). Concessionary travel passes are issued and administered by Translink.12

1.46 Matching of travel pass holders to death records reveals cases where a pass is still in circulation, and could therefore potentially be used, after the death of the pass holder. In the current exercise, this matching revealed 2,427 such cases. Translink were already aware of 1,141 of these through monthly information received from the local GRO.

1.47 Translink deactivated the remaining 1,286 passes by early March 2015. Only 15 of these had recorded usage, estimated at a value of £1,141, after the date of death but fraud cannot be proven.

Blue Badges

1.48 People with severe mobility problems can apply for a blue badge which entitles them to a range of concessions such as free parking in “pay and display” areas and use of parking spaces designated for blue badge holders. The Department for Infrastructure (DfI)13 administers blue badges in Northern Ireland.

1.49 An NFI match of blue badge holder records to death records, to identify badges potentially still in use after the death of the registered owner, generated 4,285 matches, a 15 per cent reduction on the previous exercise. This reduction may be due in part to the receipt of monthly death records from the GRO, enabling the DfI to cancel badges at the earliest possible date. The 4,285 badges have been flagged on the DfI’s database as not for automatic renewal, meaning the badge is effectively cancelled.

12 Translink is the name under which the bus and rail companies operate. Its parent company is the Northern Ireland Transport Holding Company, which is an Arm’s Length Body of the Department for Infrastructure (formerly Regional Development). 13 Formerly the Department for Regional Development. Departmental restructuring came into effect on 9th May 2016. 22 The National Fraud Initiative: Northern Ireland

Part One: NFI Outcomes

1.50 The DfI prioritised 45 cases for investigation where the badge issue date was after the date of death. These were due to an administrative time lag. No frauds have been confirmed.

1.51 The NFI also matches blue badge holders across authorities, to detect people who may be holding more than one badge. This generated 53 matches, 33 of which occurred because either the DfI or the organisation on the other side of the match held an incorrect national insurance number. This emphasises the need for all participating organisations to ensure that they hold accurate data, to minimise the number of false matches.

1.52 In a continuing effort to improve the administration of blue badges and minimise fraud, the DfI attempted to establish a formal link with the Department for Transport’s Blue Badge Improvement Service (BBIS) in March 2016. However, BBIS contractual arrangements made no provision for the inclusion of Northern Ireland. The DfI has sought confirmation from the Department for Transport that this omission will be rectified when the new BBIS contract is offered in January 2017.

1.53 In the meantime, the DfI:

• has created a new blue badge database which will in future link into the GB database;

• has adopted a new badge design which will be much more difficult for fraudsters to replicate or amend; and

• introduced a new application form in June 2016 to ensure the capture of complete and accurate information, including national insurance numbers.

1.54 The DfI is considering how it might make more use of the increased capacity of traffic attendants’ hand-held devices, to give the attendants access to all live badge data, enabling them to confirm the proper use of badges on the spot.

A pilot exercise on Lone Pensioner Allowance produced valuable outcomes and has been incorporated into the main NFI exercise

1.55 Three pilot exercises were undertaken during the last NFI exercise, one of which produced valuable outcomes. Lone Pensioner Allowance (LPA) gives a 20 per cent rate rebate to people aged 70 or over who live alone. LPA records were matched to death records, electoral records and state pension records to determine whether the award of LPA was still valid. The pilot produced outcomes of almost £23,000. The matches have been incorporated into the main NFI exercise and over £37,000 of outcomes have been identified so far. The National Fraud Initiative: Northern Ireland 23

Case Example 14 A data match highlighted that a pensioner in receipt of Lone Pensioner Allowance (LPA) had died. The account was closed and changed to a Rating of Empty Homes account in the name of the personal representatives of the deceased person. Rates, including clawback of LPA amounting to £1,080, have been fully recovered. Source: Land and Property Services

Two new pilot exercises have been undertaken as part of NFI 2014-15

1.56 Two pilot exercises have been undertaken as part of NFI 2014-15:

• Direct payments (personal budgets) for health and social care were matched to death records to detect cases where a direct payment recipient had died but the health trust had not been notified. There have been no monetary outcomes from the pilot and it is unlikely to remain as a match in the NFI 2016-17 exercise.

• GP patient registration data, administered by the Business Services Organisation (BSO), has been included as a pilot in 2014-15 to help tackle the issue of cross border health fraud, where a person not ordinarily resident in Northern Ireland uses a false address or a relative’s address to register with a GP in order to access free health and social care to which they are not entitled. The matches will be used by the BSO to target their counter fraud work. It is too early to judge the success of this pilot but it will be evaluated ahead of the next NFI exercise.

Part Two: Using the NFI more effectively 26 The National Fraud Initiative: Northern Ireland

Part Two: Using the NFI more effectively

The commitment of participating organisations to the NFI is key to its success

2.1 The success of the NFI continues to depend on the co-operation of participating organisations and their recognition that effective data matching is a key component of a successful counter fraud strategy. Organisations must be commended for their continued commitment and co- operation.

Organisations must adopt a robust but measured approach to NFI investigations to make the most of finite resources

2.2 NFI 2014-15 is the fourth exercise in Northern Ireland. Most participating organisations are now very familiar with the process and have a tried and tested approach to reviewing and investigating matches. However, there are still many examples of organisations continuing to investigate matches when no fraud or error is being found. This is not an effective use of resources.

2.3 There is no audit requirement to investigate all matches. The time and effort devoted to reviewing and investigating NFI data matches is entirely a matter for participating organisations. However, given that the matches highlight inconsistencies which could indicate fraud and error, organisations must adopt a robust, risk-based approach when deciding how many, and which, matches to investigate.

2.4 Key reports and recommended matches are highlighted within the NFI web application to help organisations identify where finite resources should initially be focused but organisations can sort, filter and reprioritise matches in line with local fraud risk assessments.

The value of data matching can be enhanced by effective communication between participating organisations

2.5 The NFI web application provides a secure environment for exchanging information on data matches through a shared comment facility. This is the means by which organisations can both seek information from and provide information to the organisation on the other side of the match, to help determine whether a match indicates fraud or error.

2.6 There is clear evidence that many organisations are not reading and responding to shared comments on a regular or timely basis. Key contacts should ensure that review of, and response to, shared comments is factored into NFI work. This may be a better use of resources than continuing to investigate matches where no fraud and error is being found (see paragraph 2.2). The National Fraud Initiative: Northern Ireland 27

There is still evidence of inefficiencies in how some organisations undertake their NFI work

2.7 Previous NFI reports have highlighted how organisations could be more efficient and effective in relation to the NFI but some of these lessons have not been learnt. Figure 5 reiterates some of these key points:

Figure 5: Using the NFI more efficiently and effectively

Issue Action

Roles and • Key contacts must be appropriate for the role and have the time, commitment and oversight responsibilities necessary. • Users must know the business area in order to investigate matches effectively.

Planning • Once matches are released, the Director of Finance and Key Contact should agree an approach to the review and investigation of matches and a timetable for completing the work. • Users who will investigate matches should view the relevant on-line training videos and read the latest guidance so they know the most efficient way of working. Investigating • Matches should be followed up promptly once available. matches • Priority should be given to recommended matches and key reports. • Make use of the sort and filter options within the web application to help prioritise matches. • Work within the secure web application. It is designed to streamline the process, allow easy sharing of information and ensure data security. • Report comments should be used where possible, rather than repeating the same comment on numerous individual matches. This will save time and effort. • You are not required to investigate every match. Use a risk based approach. • Time may be better spent responding to shared comments rather than continuing to investigate. • Provide short but informative comments on matches, as opposed to simply writing “No issue”. Recording and • Outcomes should be recorded promptly and only on the secure NFI web based application. reporting • Ensure that all outcomes are captured, including qualitative ones such as national insurance number corrections. • Use outcomes to inform how controls can be improved. • Senior management, the Board and the Audit Committee should be informed of progress and outcomes. • Positive assurance can be taken from having few matches and no outcomes. • Positive outcomes such as successful prosecutions should be published both internally and externally as a deterrent. 28 The National Fraud Initiative: Northern Ireland

Part Two: Using the NFI more effectively

Fraud risks are constantly evolving and a sound counter fraud strategy, of which the NFI is a part, is essential for all organisations

2.8 Fraud risks change as organisations, and the environment in which they operate, change. The Northern Ireland public sector is currently in the middle of a period of unprecedented change, with reductions in the number of local councils and central government departments, replacement of the education and library boards with a single education authority and significant staff losses through a voluntary exit scheme.

2.9 It is widely accepted that fraud risk increases in times of change. Organisations must review and revise their fraud risk assessments to take account of changing risks and ensure that their counter fraud strategy is fit for purpose. The NIAO recently published Managing‘ Fraud Risk in a Changing Environment: A Good Practice Guide’ aimed at helping organisations to recognise and address the risks and challenges that change presents.

2.10 Figure 6 shows some of the ways in which the NFI contributes to counter fraud arrangements.

Figure 6: The NFI as part of a counter fraud strategy

Deter fraud by publicising successful Prosecute detection Prevent fraud fraud by using evidence by improving gathered controls

Investigate Detect fraud NFI can fraud by providing by identifying evidence help... irregularities

Inform Mitigate fraud fraud policy through regular Analyse matching fraud by quantifying fraud risks The National Fraud Initiative: Northern Ireland 29

The vast majority of participating organisations have sound arrangements in place in relation to the NFI

2.11 The majority of participating organisations are audited by the NIAO. Audit staff have a role in quality assuring each organisation’s progress on the NFI, including how they review and investigate matches, record outcomes and report on the NFI internally. Auditors reviewed progress as at November 2015 and applied a Red / Amber / Green rating to each organisation (see Appendix 5 for details). As Figure 7 shows, the progress of 87 per cent of participating organisations was considered satisfactory.

Figure 7: Rating of Organisations’ NFI Approach

3% 10% 87%

2.12 The three organisations classed as red are all local councils. Significant organisational change occurred within the local government sector during this NFI exercise and these three organisations gave the NFI a low priority. One of the three councils completed its review of recommended matches by 31st March 2016, following regular reminders. The two remaining councils had not reviewed all their recommended matches by that date.

There are examples of both good and poor practice by participating organisations

2.13 Figure 8 sets out examples of both good and poor practice by participating organisations, as highlighted by audit staff: 30 The National Fraud Initiative: Northern Ireland

Part Two: Using the NFI more effectively

������������������������������������������������������������������������������������������� Figure 8:

Good Practice Ø The NFI is included as a standing agenda item for the Audit Committee, with reporting to the full Board as appropriate. Ø NFI results are used to inform Internal Audit plans.

Ø The NFI investigation plan is approved by the Audit Committee before work commences.

Ø NFI outcomes are included as a Key Performance Indicator in the accountability review process.

Ø The NFI is recognised in the organisation’s risk register as a mechanism for managing fraud risk. Poor Practice Ø The NFI is not given any recognition in the organisation’s counter fraud arrangements and is not referred to in their Fraud Policy. Ø NFI results are not reported to the Audit Committee. There is no recognition that few matches and no outcomes represent positive assurance for the organisation. Ø A number of organisations continue to over-investigate. This is a waste of resources.

Ø There are examples of organisations working offline. This is not recommended and should not be required in most cases, except perhaps in relation to trade creditors where further analysis is required. Ø Non-monetary outcomes are not always properly recorded. Corrections, such as amending national insurance numbers, are important in that they improve data quality, thereby lessening the chance of fraud happening and preventing false matches in future. ������������������������������������������������������������������������������������������� Part Three: NFI Developments 32 The National Fraud Initiative: Northern Ireland

Part Three: NFI Developments

Responsibility for the NFI now rests with the Cabinet Office

3.1 Following the abolition of the Audit Commission in March 2015, responsibility for the NFI moved to the Cabinet Office. The expertise of the NFI coordinator team and the agent who carries out the data matching has been retained, so in practice the initiative has continued unchanged.

A move towards fraud prevention is a key deliverable for the NFI

3.2 While the main NFI exercise every two years still produces useful outcomes, fraud and error prevention is a more efficient and effective solution for organisations, especially at a time of budgetary pressure and decreasing staff resources. Real time data matching using a new NFI product, AppCheck, can prevent fraud and error getting into organisations’ systems. Key advantages of AppCheck are:

• it is a fraud prevention tool;

• it provides immediate access to a wide range of datasets, reducing the administrative burden of having to seek confirmation of details on a case by case basis; and

• it will help reduce the volume of matches in the main NFI exercise, allowing investigative capacity to be targeted more effectively and helping to maximise efficiency.

3.3 The NIAO is keen to work with public sector organisations to explore how AppCheck can help them reduce their fraud risk, reduce administrative burden, and help focus investigation resources on areas of greatest benefit.

The NIAO continues to implement its strategy for the development of the NFI in Northern Ireland

3.4 It is important that new opportunities are sought to expand and develop the NFI, by securing participation by new organisations and by including new datasets. The current exercise has seen participation by two large housing associations (see paragraph 1.28) and the inclusion of direct payments and GPs’ patient registration data for the first time (see paragraph 1.56). The National Fraud Initiative: Northern Ireland 33

3.5 Looking ahead to NFI 2016-17, there will be a number of developments:

• It is anticipated that a third housing association, with a housing stock of 4,500 properties, will participate in the NFI. If this is confirmed, tenancy data for around 90 per cent of the social housing stock in Northern Ireland will be included in the NFI.

• The Victims and Survivors Service will participate for the first time on a voluntary basis, submitting payroll and creditors data.

• It is anticipated that data on company directors, held by Companies House, will be reintroduced to the NFI to help detect undeclared conflicts of interest.

The scope of the NFI will be extended through pilot data matches

3.6 Pilot data matches will once again be used to extend the scope of the NFI. Areas being considered include:

• Grants – we have been discussing with the NIHE the possibility of using real time data matching in relation to certain grants, to confirm eligibility at application stage, thereby preventing potential fraud or error entering the system (see paragraph 3.2).

• Rating of empty homes exclusions – a legislative change in October 2011 means that all properties, even empty homes, are subject to rates. However, there are a number of exclusions, for example where the empty home is in the possession of a personal representative of a deceased person or where the occupant is in nursing or residential care. In such cases, applications can be made for 100 per cent rates relief. LPS are keen to explore a pilot in this area, to provide confirmation that the empty homes are in fact empty.

The NIAO remains indebted to Cabinet Office NFI colleagues for their support in implementing the NFI in Northern Ireland

3.7 Once again we thank the NFI team, now based in the Cabinet Office, for their invaluable support in the development and operation of the NFI in Northern Ireland.

Appendices: 36 The National Fraud Initiative: Northern Ireland

Appendix 1 (paragraph 4)

Total NFI outcomes in Northern Ireland to date

This is the fourth NFI report for Northern Ireland. Total outcomes to date are set out in the table below.

Dataset Reporting Reporting Reporting Reporting Total to date period period period period

1 April 1 April 1 April 1 April 2008 2010 2012 2014

to 31 March to 31 March to 31 March to 31 March 2010 2012 2014 2016

Housing benefit 1,322,864 5,026,800 1,651,977 1,249,692 9,251,333

Pensions 729,160 2,128,393 3,372,325 1,466,748 7,696,626

Rates 979,596 13,219,605 372,835 333,360 14,905,396

Creditors 208,536 386,635 102,868 31,725 729,764

Payroll and other 15,019 5,774 35,250 11,053 67,096

Private supported care 0 14,820 0 19,943 34,763 home residents

Total 3,255,175 20,782,027 5,535,255 3,112,521 32,684,978

Outcomes are made up of actual fraud, error and overpayments identified by participating bodies and recorded on their web application plus, where appropriate, an estimated amount using the calculations set out in Appendix 4. The National Fraud Initiative: Northern Ireland 37

Appendix 2 (paragraph 1.3)

Overview of the National Fraud Initiative

What is data matching?

1. Data matching uses a web-based application to compare sets of data – such as payroll, pensions, benefits and trade creditors - held by public bodies on different financial systems, to uncover possible cases of fraud or error. A match indicates an inconsistency that may require further investigation; it does not mean there is definitely fraud or error.

The National Fraud Initiative (NFI)

2. The NFI is a data matching exercise run every two years to detect frauds and incorrect payments. To date, it has identified over £1 billion of outcomes nationally. Under the NFI, there is cross-jurisdictional data matching, so Northern Ireland data are matched with data from England, Scotland and Wales.

Code of Data Matching Practice

3. The NFI is governed by a Code of Data Matching Practice14 which ensures that data matching exercises comply with the law, in particular the Data Protection Act 1998. The Code lets individuals know why their data is being matched, the standards that apply and where they can find further information. The C&AG has statutory authority to data match and does not require the consent of the individuals concerned.

Who participates in data matching?

4. Bodies whose accounts are audited by the C&AG or a local government auditor15 may be required to participate in the NFI, where there is reasonable evidence that fraud is likely to be found. Other bodies may participate on a voluntary basis where the C&AG considers it appropriate. See Appendix 3 for a full list of participants.

How is data secured?

5. The NFI uses a secure web-based application for the transmission of data and for the accessing of matches by the participating bodies. The NFI’s systems are accredited to handle, store and process information up to the restricted classification level.

14 Prepared by the C&AG under Article 4G of the Audit and Accountability (Northern Ireland) Order 2003 and available at www.niauditoffice.gov.uk 15 Local government auditors are designated under the Local Government (Northern Ireland) Order 2005 38 The National Fraud Initiative: Northern Ireland

Appendix 3 (paragraph 1.6)

Participating Bodies – NFI 2014-15 Youth Justice Agency of Northern Ireland Forensic Science Northern Ireland Northern Ireland Courts and Tribunals Service Mandatory Participants Public Health Agency

Northern Ireland Departments: Other central government bodies:

Department of Agriculture and Rural Development Belfast Education and Library Board Department of Culture, Arts and Leisure North Eastern Education and Library Board Department of Education South Eastern Education and Library Board Department for Employment and Learning Southern Education and Library Board Department of Enterprise, Trade and Investment Western Education and Library Board Department of the Environment Invest Northern Ireland Department of Finance and Personnel Northern Ireland Assembly Department of Health, Social Services and Public National Museums and Galleries of Northern Safety Ireland Department of Justice Northern Ireland Council for the Curriculum, Department for Regional Development Examinations and Assessment Department for Social Development Northern Ireland Fire and Rescue Service Office of the First Minister and Deputy First Minister Northern Ireland Housing Executive Public Prosecution Service (non-ministerial) Northern Ireland Tourist Board Arts Council of Northern Ireland Sport Northern Ireland Executive Agencies: Livestock and Meat Commission Rivers Agency Agri-Food and Biosciences Institute Forest Service Libraries Northern Ireland Driver and Vehicle Agency Council for Catholic Maintained Schools Northern Ireland Environment Agency Construction Industry Training Board Planning Service Ulster Supported Employment Ltd Social Security Agency Belfast Metropolitan College Land and Property Services Agency South West College Northern Ireland Statistics and Research Agency South Eastern Regional College Northern Ireland Guardian ad Litem Agency Southern Regional College Northern Ireland Medical and Dental Training Northern Regional College Agency North West Regional College Labour Relations Agency The National Fraud Initiative: Northern Ireland 39

General Consumer Council Castlereagh Borough Council Health and Safety Executive Coleraine Borough Council Commissioner for Children and Young People Cookstown District Council Northern Ireland Craigavon Borough Council Equality Commission Northern Ireland Derry City Council Strategic Investment Board Down District Council Northern Ireland Legal Services Commission Dungannon and South Tyrone District Council Probation Board for Northern Ireland Fermanagh District Council Northern Ireland Authority for Utility Regulation Larne Borough Council Community Relations Council Limavady Borough Council Stranmillis University College Lisburn City Council Magherafelt District Council Health Services Bodies: Moyle District Council Business Services Organisation Newry and Mourne District Council Health and Social Care Board Newtownabbey Borough Council Belfast Health and Social Care Trust North Down Borough Council Northern Health and Social Care Trust Omagh District Council South Eastern Health and Social Care Trust Strabane District Council Southern Health and Social Care Trust Northern Ireland Local Government Officers’ Western Health and Social Care Trust Superannuation Committee Northern Ireland Social Care Council Arc21 Regulation and Quality Improvement Authority Voluntary participants Northern Ireland Blood Transfusion Service NI Ambulance Service HSS Trust Electoral Office Northern Ireland Audit Office

Local Government Bodies: Translink Northern Ireland Water Antrim Borough Council St Mary’s University College Ards Borough Council Helm Housing Association Armagh City and District Council OakleeTrinity Housing Association Ballymena Borough Council Ballymoney Borough Council Banbridge District Council Belfast City Council Carrickfergus Borough Council 40 The National Fraud Initiative: Northern Ireland

Appendix 4 (footnote 4 at paragraph 1.11)

Formulae for calculating outcomes, including forward savings

Dataset Basis of calculation

Housing benefit Value of fraud or error detected plus forward savings calculated as the weekly benefit reduction multiplied by 21 weeks

Pensions Cabinet Office formula: annual pension multiplied by the number of years until the pensioner would have reached the age of 85

Creditors Value of overpayments

Rates Value of fraud or error detected plus forward savings calculated as the average annual rates bill (£700) multiplied by 2. For Lone Pensioner Allowance, the forward savings are £700 x 2 x 20% for each case, as LPA gives 20% relief.

Payroll Value of overpayments, plus £5,000 per case where an employee is dismissed or resigns, or £10,000 per immigration case (estimated amounts based on future losses prevented where a fraudulent employee resigns or is removed from post)

Private supported care home residents Value of fraud or error detected plus forward savings calculated as 13 weeks x average weekly cost (£544), rounded down to £7,000 The National Fraud Initiative: Northern Ireland 41

Appendix 5 (paragraph 2.11)

Audit Assessment of Organisations’ NFI Arrangements

RED (High Risk)

• There has been little or no activity and progress on matches.

• There is a significant risk that all planned review and investigation work will not be carried out on time.

• The Key Contact for NFI has been ineffective or has inadequate influence within the organisation.

AMBER (Medium Risk)

• There has been some progress on matches in key reports but not all key reports have been opened and not all recommended matches reviewed.

• There is a risk that all planned review and investigation work will not be carried out on time.

• The Key Contact for NFI is an appropriate person but improvements to NFI arrangements could be made.

GREEN (Low Risk)

• Good progress is being made on all key reports and recommended matches.

• The organisation is on track to complete all review and investigation work on time.

• The Key Contact for NFI is effective and experienced in the NFI process.

Published and printed by CDS The National Fraud Initiative: CDS 156169 Northern Ireland

ISBN 978-1-911003-33-5

REPORT BY THE COMPTROLLER AND AUDITOR GENERAL 7 July 2016 9 781911 003335