Agenda item

Debbie Hogg, Director of Corporate Resources presented the draft Annual Governance Statement for 2019/20, which was a requirement under the Accounts and Audit Regulations (England) 2015, to be submitted as part of the annual accounts process.

It was noted that 6 out of the 10 key areas of improvement included on the 2018/19 Statement had been completed.  The draft Statement for 2019/20 included 3 new areas of significant risk arising for inclusion in the Statement.

·         Assurance over Financial Resilience and Service Sustainability in response to COVID 19

·         Governance Functions

·         Data Quality Arrangements within the Assistive Technology Service

The draft Annual Governance Statement was initially prepared pre Coronavirus, but the draft Annual Governance Statement has been updated to reflect known and projected impacts at this point in time

The statement had reflected strong governance in place during 2019/20.  However, it was stated that the statement must also consider any significant governance issues up to the point of its approval which takes places when considered alongside the Council’s Audited Statement of Accounts currently scheduled for October 2020 Audit Committee and it was noted that Coronavirus would be a challenge and impact on governance going forward.

Arising from discussion, the Vice-Chair, Councillor Richard Alan Jones referred to the Councils Governance Framework, as set out in the Appendix to the report and felt that there should be an audit trail in relation to the work of the Council’s Statutory Officers Governance Group.  Officers explained the Governance Group was an officer working group established several years ago that had its own governance work plan and that its output and audit trail was what agenda items were presented at Audit Committee, e.g. the Annual Governance Statement itself had been inputted into and reviewed by the Governance Group.

In response to questions from Members, the Director of Corporate Resources reported that whilst the Council was largely on track to make the planned savings for 2020/21, there was currently a projected shortfall of £1.7m.  The Council were currently under significant financial pressure and have pressures  in the region of £15m and increasing due to the impact Covid 19 was having on Council Services.  The Council had received £18m funding from the Government to support the impact Covid 19 was having on Council services.  However, she stressed that the Council continued to face significant challenges.  Should the Council not receive further funding from Government, the Council would need to bring in measures in order to ensure a balanced positionin 2020/21. 

In response to further questions regarding the payment of business rates and rate relief for businesses, it was noted that those business who qualified for the relief had received it.  For those businesses who had been granted payment holidays, the Council would be contacting them from the end of June onwards to put in place payment plans for payment of business rates.

In answer to a question concerning the Adult Social Care Market Sustainability, as to whether more support would be provided to those businesses who were found to be in financial difficulties due to the Covid 19 pandemic, it was noted that both Supported Living and Residential Services have been supported during Covid 19, and measures have been introduced to support these areas going forward.

During discussion, it was noted that the carry forward of the 4 key areas of improvement from the 2018/19 Statement had been risk assessed as still being significant and warranted their continued inclusion in the Annual Governance Statement.

A question was asked as to what impact Covid 19 had on the Council’s governance arrangements. Members were informed that the Council’s Governance framework was robust and flexible to enable the council to conduct its business. A number of Special Urgency Rule 16 decisions had been taken to deal with urgent issues.

RESOLVED that the initial outline of the draft Annual Governance Statement, prior to being published for consultation as part of the Draft Accounts in June 2020 (revised timescales), be noted.