Issue - meetings

FSD 18036

The Annual Governance Statement report was prepared and presented by David Hogan—Head of Audit.

The report was required because the Accounts and Audit Regulations 2015 required that a local authority undertake a review at least annually of the effectiveness of its system of internal control. This statement would be included with the published accounts. In England, the statement was the Annual Governance Statement. It was also included in the relevant CIPFA Code of Practice.

The report asked Members to comment and agree the Annual Governance Statement.

The Head of Audit outlined the sources of assurance that had to be relied upon when the AGS was being prepared. These sources included responsible directors and managers in the Council, as well as external auditors, other review agencies and inspectorates. The Head of Audit opinion also formed a key part of the review.

The annual review had identified several areas where further work was required to monitor how the key risks facing the Council were being managed, or where further work was required to improve systems. The first area identified was that of Finance and it was noted that in the future significant challenges would exist in trying to reconcile budget savings with the maintenance of front line services.

Members were appraised that contract issues had been identified over the last two years which had highlighted the need for stronger control and better management oversight.

Also identified was the need to effectively use performance management information and improve quality assurance arrangements.

The Committee noted that the Council’s Code of Corporate Governance had not been updated to reflect the 2016 CIPFA guidance.

Members were appraised that significant changes were required so that the Council would be compliant with the General Data Protection Regulations 2016 (GDPR) which would be introduced from May 25^th. Penalties for non-compliance could be severe.

Finally, the Head of Audit reminded Members that as part of the conclusion process in finalising the AGS, it was important that the Audit Sub-Committee provided robust independent consideration, challenge and ultimately—approval of the document. Once agreed by Internal Audit, the Annual Governance Statement would be signed by the Leader and by the Chief Executive. 

RESOLVED that the Annual Governance Statement for 2017/18 is approved.