Agenda item

Report of Corporate Director for Finance and Resources

John Slater, Group Assurance and Audit Governance Manager, presented a report which gave an overview of the Council’s governance arrangements measured against standards and set out plans to improve compliance and to prepare an annual governance statement. The following information was highlighted:

a)  The report set out

·  a process for compiling the 2022/23 and 2023/24 Annual Governance Statements (AGS),

·  the process for completing drafting of the 2021/22 AGS and updating the 2019/20 and 2020/21 AGS

·  proposals to review the local code of governance and establish a Corporate Assurance Framework, and

·  a summary of changes to the governance environment since the last update.

b)  The Local Code of Governance is a summary of the Council’s governance arrangements and was last updated in 2017. It is based on good practice and principles of good governance as put forward by CIPFA which was updated in 2016.

c)  CIPFA has produced more recent guidance on local authority assurance frameworks and they are working with the LGA to provide new guidance this year. It was proposed to review the Local Code of Governance and to establish a Corporate Assurance Framework by October 2024.

d)  In regards to the production of the AGS, these are consistent with the indicative timelines as proposed with the Statement of Accounts.

e)  An AGS is required to be produced by the Accounts and Audit Regulations 2015 for each set of draft and final accounts.

f)  For 2022/23 and 2023/24 a combined AGS compilation process will take place with the aim of completion by June or July.

g)  A number of key governance changes were outlined such as government intervention, external auditor recommendations, and the section 114 (3) report issued in 2023.

The Committee raised the following points in discussion:

h)  The Committee welcomed the establishment of a Corporate Assurance Framework.

i)  Members discussed the interpretation of the latest CIPFA guidance and whether local authorities have interpreted the guidance varyingly. It was explained that the Council will be looking to conform with the guidance, but that other local authorities may have made more progress in its implementation. The Council will be looking to other local authorities to assess best practice.

j)  The new model will be a live process and thus assurances will be generated on an ongoing basis across all lines of activity which will be available to assess any issues.

k)  The Committee discussed areas of control such as performance management, financial controls, system controls and business continuity controls.

l)  Members commented that the Council needs to ensure that reporting is focussed and proportionate to the levels of risk and challenges that the Council faces.

m)  The Committee sought assurance on how the proposed frameworks are adding value to the Organisation. It was explained that the aim is to give senior managers assurances and an understanding of the issues that their specialisms face. It reflects best practice on what should be in place in all Councils. It is hoped that the majority of the control information will be automated and therefore would not be a burden on staff.

n)  It was clarified that the changes will allow Audit Committee to receive a clearer focus on any issues identified and this will allow it to add more value.

Resolved:

1)  To note the proposed establishment of a Corporate Assurance Framework by October 2024 following a review of the local governance framework, complying with the CIPFA, Leadership Assurance Frameworks guidance (December 2023), and the LGA Improvement and Assurance Framework for Local Government currently in consultation.

2)  To note the process to update prior year Annual Governance Statements for 2019/20 and 2020/21 to support statutory requirements for the financial statements outlined in the report.

3)  To note the process and timetable for compiling and completing the 2021/22, 2022/23, and 2023/24 Annual Governance Statement and associated risks as detailed in the report.

4)  To note the summary changes to Governance as outlined in the report.