Agenda item

Consideration was given to a report which informed Members of a review that had been undertaken of Doncaster’s Local Code of Corporate Governance to ensure that the guidance was relevant and up to date. A copy of the Local Code was appended to the report at Appendix A. The report also sought the Committee’s approval of the outline draft Annual Governance Statement (AGS) for the 2021/22 financial year, which the Council was legally required to produce.

The report outlined the process for the preparation of the Annual Governance Statement, which the Committee was asked to review and to endorse the initial draft Statement, prior to publication of the Council’s final Accounts in October 2022.

In introducing the report, the Director of Corporate Resources stated that the report was a positive report and further to last year’s AGS which had contained 9 significant issues, it was proposed that only 2 of the issues identified on last year’s plan would be carried forward into next year’s plan. All other issues had been effectively managed and were considered complete, or could be stepped down from the plan. During this year’s process, 1 new area of significant risk had been identified relating to Doncaster Inspection of Local Authority Children’s Services, as detailed at page 6 of Appendix B of the draft AGS.  Members were informed that 2 of the items represented on the AGS related to issues within Children’s Services and the Doncaster Children’s Services Trust. It was noted that the start of the financial year had been another very challenging environment for the Council, as a result of the Covid-19 pandemic. Despite this, Doncaster Council continued to ensure that its internal control arrangements were relevant, appropriate, well governed and effective, as evidenced in the draft AGS. The AGS would be reviewed and updated throughout the year to reflect progress before the production of the final AGS, which was anticipated to be presented to the Committee in October 2022.

The Vice-Chair raised a query regarding two items that had been brought forward from the previous year and one significant issue that had been identified for improvement in relation to ‘Doncaster Ofsted Inspection of Local Authority Children’s Services’. In response, the Director of Corporate Resources explained the complex nature of this issue which related to two separate matters regarding the Ofsted inspection report. This report referred to both the sustainability of the Council providing quality, safe and secure care provision for the delivery of children’s services and outlined the mechanisms in place for the transfer of the DCST function to the Council.

The Vice-Chair further sought assurance that the Council had the commitment, budget and resources in place to be able to deliver on the transformation of Children’s Services programme, whether this would be included on the Internal Audit Work Programme, or whether assurance would be sought from External Audit. The Director of Corporate Resources outlined the governance arrangements in place for overseeing the transition of the DCST, with input from the DfE which was ongoing. The transition of the Trust would be overseen by 3 sub-groups, with 2 of the sub-groups focussing on Performance and Systems modifications, chaired by herself as Director of Corporate Resources and the third group to look at Practice Improvement, chaired by the Director of Learning and Opportunities and Skills. The Audit Committee would be kept informed of progress going forward.

In response to questions regarding the Adult Social Care Market Sustainability, the Director of Corporate Resources provided an update with regard to the work and engagement that was being undertaken by the Council with the NHS Commissioning teams, care providers and the Integrated Care Systems. This included funding and resources to support the Adult Social Care sector which had been a challenge due to the recruitment of staff to the sector. She spoke of the need to ensure that the Council had a sustainable market to deliver the needs of both Adults and Children’s Services and confirmed that the Market Position Statement would be completed this year.

In relation to the extended timeframe of April 2023 for the completion of the Adult Social Care Market Sustainability work, it was reported that there was a significant amount of work required and changes to take place in this area through the coming year. The Council have been developing modules in terms of the Council’s market position statement and extensively working with the market. The timeframe had been extended to allow more time, due to negotiations taking place regarding the implementation of the 2022 fee uplifts of care providers and commissioning of services, changes to the government’s White Paper, and as a consequence of the Covid-19 pandemic.

Members were pleased to note the positive progress being made with regard to the 7 areas removed from the AGS. In response to questions regarding the cost pressures within the Dedicated Schools Grant (DSG) budget and implementation of the DSG deficit, as outlined in the External Auditor’s report, which had increased during the year and was projected to increase to over £14m by the end of March 2022, and whether this item was to be included on the AGS, it was noted that these issues would be addressed as part of the improvement plan for Children’s Services. It was explained that separate funding sources were involved which included the future Placement Strategy and the Special Educational Needs and Disability (SEND) strategy.

Following further questions, the Head of Audit confirmed that the AGS had been prepared in line with best practice guidance.

In relation to assurance regarding the Council’s future Financial Sustainability following recovery from the Covid-19 pandemic, which had been removed from the AGS, but would remain on the risk register, due to the Council maintaining a stable budget, the External Auditor confirmed that this area would continue to be an area of focus as part of External Audit’s work for 2021/22. The rationale for removing this item from the AGS was based on the good financial performance of the Council over the years and the levels of Council reserves. In spite of the DSG challenge, no significant issues had been identified with the AGS, including the judgement on the Council’s financial position. This would be kept under review and the AGS would remain a live document until the Statement of Accounts was signed later in the year.

The Head of Internal Audit confirmed that he was satisfied regarding the governance arrangements of the Council and that no items had been identified for inclusion on the AGS.

RESOLVED that the outline of the draft Annual Governance Statement be endorsed, prior to it being published for consultation as part of the 2021-22 Council Draft Accounts.