Agenda item

The Committee received the Annual Governance Statement for 2016/17.  The Council’s governance arrangements in place during 2016/17 had been reviewed and an annual governance statement had been produced and was attached at Appendix A to the report. 

Members noted that there had been 2 significant weaknesses reported in 2016-17, which were Adult, Health and Wellbeing (Contract and Commissioning Arrangements) and Deprivation of Liberty Safeguards (Best Interest Assessments), as detailed on page 5 of Appendix B of the report.  The Governance Statement highlighted the key areas of improvement from 2015-16 that had been completed and had been effectively managed to the extent that they were no longer significant in 2016-17.

In presenting the report, the Chief Financial Officer and Assistant Director of Finance, drew Members’ attention to the new format that had been introduced which included a Statement of Principles as set out on page 2 of the Appendix.  It was reported that some of the key areas for improvement were near completion however, there remained some issues identified during previous years that were yet to be resolved and would be carried forward as part of the 2017/18 action plan.

In response to a question from Kathryn Smart, the Chief Financial Officer and Assistant Director of Finance indicated that he would look at the enhancements suggested to the wording within the report around the assurances/opinions given by Internal and External Audit.

Kathryn Smart asked whether consideration had been given to including Markets and Drainage Boards, as areas requiring improvement.  In relation to Drainage Boards, it was reported that these boards were not directly operated by the Council but that the Council did appoint Commissioners to the Boards. Whilst there were some serious failings in governance arrangements around Drainage Boards, these were more significant, in terms of their impact, on the individual Drainage Boards, rather than their impact on the Council and so were not included within the Annual Governance Statement.  It was highlighted that an update report was to be submitted to the next meeting of the Committee, summarising the current position with regard to the 3 Drainage Boards based within the borough, incorporating some work that had been done with the National Audit Office who had produced a national report on Drainage Boards.  In terms of the Markets, it was reported that an update report had been presented to the Committee in July last year. This reported a better level of assurance that was indicative of a much improved control environment in relation to the governance and financial management arrangements and the Health and Safety issues which were highlighted at that time. Markets were not therefore included in the Annual Governance Statement this year.

During discussion, the Chief Financial Officer and Assistant Director of Finance reported that there was a Council wide misunderstanding of the actual purpose of the Governance Statement, with there being some low level issues raised by Officers.  It was reported that the Annual Governance Statement was intended to provide a holistic, high level strategic look at the Council’s governance arrangements and so it was intended to provide training for officers on the purpose of the Annual Governance Statement later on in the year.

In relation to the on-going key improvement areas identified in Appendix A of the report, Members sought assurance that safeguards had been put in place to bring the completion dates back on track.  It was reported that a 6 monthly update on these issues would be provided to the Committee in future. 

RESOLVED that

(1)         subject to the Committee’s comments above, the draft statement be approved in principal and subsequently a final version will be presented to Audit Committee on 27th July, for their approval; and

(2)         it be noted that the Mayor and the Chief Executive will be asked to sign the final Statement, after approval at Audit Committee on 27th July and prior to its publication along with the Statement of Accounts.