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Audit and Risk Management Committee Public Document Pack Audit and Risk Management Committee Date: THURSDAY, 20 SEPTEMB ER 2012 Time: 11.00am Venue: COMMITTEE ROOM - 2ND FLOOR WEST WING, GUILDHALL Members: Jeremy Mayhew (Chairman) Kenneth Ludlam (External Member) Alderman Ian Luder (Deputy Caroline Mawhood (External Member) Chairman) Jeremy Simons Alderman Nick Anstee Alderman Simon Walsh Nigel Challis Deputy Douglas Barrow (Ex-Officio Hilary Daniels (External Member) Member) Revd Dr Martin Dudley Ray Catt (Ex-Officio Member) Deputy Robin Eve Roger Chadwick (Ex-Officio Member) Oliver Lodge Enquiries: Julie Mayer tel. no.: 020 7332 1410 [email protected] Lunch will be served in Guildhall Club at the rising of the Committee John Barradell Town Clerk and Chief Executive AGENDA Part 1 - Public Agenda - **please note amended running orde r ** 1. APOLOGIES For decision 2. DECLARATIONS BY MEMB ERS OF ANY PERSONAL OR PREJUDICIAL INTERESTS IN RESPECT OF ITEMS ON THIS AGENDA For decision 3. STRATEGIC RISK 8 (SR 8) - MANAGING THE CITY CO RPORATION'S REPUTATION Report of the Director of Public Relations For Information For decision (Pages 1 - 6) 4. STRATEGIC RISK 10 (S R10) - ADVERSE POLITICAL DE VELOPMENTS UNDERMINING THE EFFECTIVENESS OF THE CITY OF LONDON CORPORATION Report of the Remembrancer For Information For decision (Pages 7 - 10) Part 2 - Non -Public Agenda 5. EXCLUSION OF THE PUB LIC That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting for the following item on the grounds that it involves the likely disclosure of exempt information as defined in Part I of Schedule 12A of the Local Government Act. For decision 6. SR8 - MANAGING THE CITY CO RPORATION'S REPUTATI ON Report of the Director of Public Relations For information For decision 7. SR10 - ADVERSE POLITICAL DE VELOPMENTS UNDERMINI NG THE EFFECTIVENESS OF THE CITY OF LONDON CORPORATION - TO FOLLOW Report of the Remembrancer For information For decision 8. DUE DI LIGENCE REVIEW For decision 9. CORPORATE INVESTIGAT ION Report of the Chamberlain For Information For decision (Pages 11 - 12) Part 1 - Public Agenda (continued) 10. MINUTES OF THE PREVI OUS MEETING To agree the public minutes and summary of the meeting held on 24 July 2012. For decision (Pages 13 - 18) 11. OUTSTANDING ACTIONS OF THE COMMITTEE Report of the Town Clerk For decision (Pages 19 - 22) 12. ANNUAL AUDIT LETTE R Report of the External Auditors For Information For decision (Pages 23 - 32) 13. AUDIT AND RISK MANAG EMENT COMMITTEE EFFE CTIVENESS REVIEW Report of the Town Clerk For Decision For decision (Pages 33 - 56) 14. INTER NAL AUDIT REPORTING LINES AND TERMS OF R EFERENCE Report of the Town Clerk and Chamberlain For Decision For decision (Pages 57 - 68) 15. STAFF DECLARATIONS O F INTEREST AND THE B RIBERY ACT Report of the Town Clerk, Chamberlain and Comptroller and City Solicitor For Decision For decision (Pages 69 - 76) 16. PUBLIC SECTOR INTERN AL AUDIT STANDARDS 3 Report of the Chamberlain For Decision For decision (Pages 77 - 158) 17. HEALTH AND SAFETY MA NAGEMENT SYSTE MS Report of the Director of Human Resources For Information For decision (Pages 159 - 166) 18. HEALTH AND SAFETY - TOP 10 RISK REGISTER Report of the Director of Human Resources For Information For decision (Pages 167 - 174) 19. CHANGES TO PLANNING PROCESS UNDER THE LO CALISM ACT 2011 Report of Comptroller and City Solicitor and Director of Built Environment For Information For decision (Pages 175 - 180) 20. RISK MANGEMENT UPDAT E Report of the Chamberlain For Decision For decision (Pages 181 - 208) 21. INTERNAL AUDIT PLANN ING 2013/14 Report of the Chamberlain For Decision For decision (Pages 209 - 222) 22. INTERNAL AUDIT UPDAT E REPORT Report of the Chamberlain For Information For decision (Pages 223 - 244) 23. INTERNAL AUDIT RECOM MENDATIONS FOLLOW UP REPORT Report of the Chamberlain For Information For decision (Pages 245 - 260) 24. INVESTIGATION ACTIVI TY UP -DATE REPORT Report of the Chamberlain For Information For decision (Pages 261 - 268) 25. APPOINTMENT OF NON L OCAL AUTHORITY FUNDS AUDITORS Report of the Chamberlain For Decision For decision (Pages 269 - 272) 26. COMMITTEE WORK P ROGRAMME Report of the Town Clerk. For decision (Pages 273 - 274) 27. QUESTIONS ON MATTERS RELATING TO THE WORK OF THE COMMITTEE For decision 28. ANY OTHER BUSINESS T HAT THE CHAIRMAN CON SIDERS URGENT For decision Part 2 - Non Public Agenda (continued ) 29. EXCLUSION OF THE PUB LIC That, under Section 100 (A) of the Local Government Act 1972, the public be excluded from the meeting for the following items on the grounds that they involve the likely disclosure of exempt information as defined in Part 1 of Schedule 12A of the Local Government Act. For decision 30. MINUTES OF THE PREVI OUS MEETING To agree the non-public minutes of the meeting held on 24 July 2012 For decisio n (Pages 275 - 278) 31. HEALTH AND SAFETY - TOP 10 RISK REGISTER (NON -PUBLIC APPENDIX) Report of the Director of Human Resources For Information For decision (Pages 279 - 280) 5 32. PUBLICATION OF INFOR MATION ON CITY'S CAS H Report of the Director of Public Relations For Decision For decision (Pages 281 - 296) 33. CITY'S CASH FINANCIA L STATEMENTS Report of the Chamberlain For Decision For decision (Pages 297 - 300) 34. PLANNING GOVERNAN CE Report of the Town Clerk and Comptroller and City Solicitor For information For decision (Pages 301 - 306) 35. QUESTIONS ON MATTERS RELATING TO THE WORK OF THE COMMITTEE For decision 36. ANY OTHER BUSINESS T HAT THE CHAI RMAN CONSIDERS URGEN T For decision Part 3 - Confidential Agenda 37. CONFIDENTIAL MINUTES OF THE AUDIT AND RIS K MANAGEMENT COMMITTEE OF 24 JULY 2012 To approve the Confidential Minutes of the meeting held on 24 July 2012 For decision Agenda Item 3 Committee: Date: Item no. Audit and Risk Management 20 September 2012 Subject: Public Strategic risk SR8 - managing the City Corporation's reputation Report of: For Information Director of Public Relations Summary This report sets out briefly the background to the management of Strategic Risk No 8 – the management of the City of London Corporation’s reputation. It specifies the nature of the risks, the procedures in place to tackle them and the integral part which this work plays in the implementation of the overall Communications Strategy . Recommendation The Committee is recommended to take note of the contents of this report. Main Report Background 1. Like all organisations, the protection and enhancement of its reputation is an integral part of the work of the City of London Corporation. The lead responsibility for this rests with the Director of Public Relations and the Public Relations Office. The overall approach to this work is set out in the Communications Strategy, 2012-15 , approved by the Court of Common Council in April 2012. The relevant section of the Strategy is attached at appendix A. Detailed arrangements are also in place to ensure that this work is carried out in a fully integrated way with all relevant committees and departments, including appropriate regular meetings to review the current position and advise on the best way to handle particular issues, as and when they arise. Current Position 2. The current entry on the risk register for this risk (SR 8) is attached at appendix B. Various mitigating controls are in place as follows: i. Work proceeds to implement the focus of the communications work in relation to the services which the organisation provides, as specified in the current Communications Strategy (in addition to the continuing work on financial services issues). Detailed reports Page 1 on the progress with these activities are provided quarterly to the Policy and Resources Committee; ii. The City Corporation’s retained public affairs consultants, Quiller Consultants Ltd, provide, inter alia, detailed external advice and guidance on the management of reputational risk, through regular discussions with senior Members and officers; iii. The Director gives the highest priority to ensuring that the staffing arrangements of the PR Office encompass all the necessary skills, knowledge, experience and approach that assists in preparing in advance for possible risks to the reputation of the organisation and handling them effectively as and when they arise. This includes continuously placing the highest priority on the need to keep a close watch on this aspect of the organisation’s work; iv. The Director ensures regular liaison with Chairmen and Deputy Chairmen of Committees, chief officers and departmental communications representatives (including a regular meeting of the latter) whereby the reputational risks from all policy decisions and other aspects of the organisation’s work can be closely monitored; v. A “Public Relations Tool Kit” has been prepared for departmental communications representatives and others in departments with a communications responsibility to assist them in this work and help PR staff provide relevant training; and vi. Each departmental risk register is reviewed carefully on a regular basis, both by the audit and risk management team and PRO staff to make sure that all potential reputational risks are managed appropriately. 3. There are a number of substantial potential and current reputational risks which are set out in the attached entry in the risk register. Detailed plans are in place to monitor and manage each of these risks. Conclusion 4. This reports sets out briefly the current position on the management of reputational risk within the organisation, which the Committee is asked to consider and note. Background Papers: City of London Communications Strategy, 2012-15 Appendices: Page 2 Appendix A: Relevant section of the Communications Strategy, 2012-15 Appendix B: Strategic Risk 8, Negative publicity and damage to the City Corporation's reputation. Contact: Tony Halmos | [email protected] | 020 7332 1450 Page 3 Appendix A Extract from City of London Communications Strategy, 2012 -15.
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