Agenda item

The Committee had before it a report by the Director of Commissioning which provided assurance on the risk management, financial management and governance arrangements of Arm’s Length External Organisations (ALEOs)

within the ALEO Assurance Hub’s terms of reference.

The report recommended:-

That the Committee

(a)      note the level of assurance provided by each ALEO on risk management, financial management and governance;

(b)      note that Assurance Hub officers and ALEO Service Leads would discuss any outstanding issues identified in the appendices and identified at the Audit, Risk and Scrutiny Committee with ALEO representatives, with a view to further improving the assessment ratings at the next Hub meeting; and

(c)      note that the Council agreed to form a Joint Venture with bp to develop a hydrogen hub in the city, agree that the ALEO Assurance Hub provide

oversight of bp Aberdeen Hydrogen Energy Limited, and note that the

Assurance Hub Terms of Reference would be amended accordingly.

In response to a question relating to who would have oversight of how ALEOs were achieving Council outcomes and complying with the terms of their service

level agreements if the Strategic Commissioning Committee did not exist, the Chief Officer – Governance advised that if there were changes to the Committee structure, that all business would be re-aligned to another Committee or to Council.

In response to a question relating to the joint venture with bp and how the risk would be valued, the Chief Officer – Governance advised that risk management would be monitored via the ALEO Assurance Hub as well as scrutiny over the financial aspects at the City Growth and Resources Committee.

The Committee resolved:-

to approve the recommendations contained in the report.