Agenda item

The Director of Corporate Services presented the report. The Authority was required to publish an Annual Governance Statement (AGS) along with the Authority’s financial statements, following a self-assessment review of the effectiveness of the internal controls in place. The report and the statements set out the key elements of the Authority’s governance framework, how these had been evaluated, the outcome of the assessment of effectiveness and any areas for improvement.

The Audit Committee had previously approved a Code of Corporate Governance, in line with guidance produced jointly by CIPFA (Chartered Institute of Public Finance Accountants) and SOLACE (Society of Local Authority Chief Executives). The Code defined corporate governance as the way an authority ensured that it was doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest, and accountable manner.

In order to assess the effectiveness of the Authority’s current arrangements a self-assessment had been undertaken by the Executive Board who had considered the various sources of assurance that supported the core principles outlined in the report and the outcome of this was considered by Members under appendix A.

The assessment also considered recommendations made as part of last year’s Annual Governance Statement i) a project to replace the existing Performance Management System would commence; ii) an upgraded Finance system would be implemented in April 2022 and the Service would review and implement improvements to the monthly budget monitoring process which made greater use of additional functionality provided; iii) a mechanism to report to Members of the CFA the services response to national recommendations made by the HMICFRS during the year would be identified.  The Authority had addressed these areas which include the development of a new performance management system, improvements to financial monitoring processes, and the establishment of an Organisational Assurance Team to oversee internal audits and preparedness.

As part of the review, the Service was required to identify and disclose any significant governance issues, of which there had been none, hence the overall conclusion was that the system of internal controls was adequate.

County Councillor Buckley asked a question regarding whether there were significant changes to the Annual Governance Statement yearly or if it remained static, as Councils had a constitution which was a single point of contact for all Governance information. The DoCS explained that the Service had a Constitution and Standing Orders, and a Scheme of Delegation akin to Local Authorities which did remain fairly static. However, the Service were required to provide the AGS to confirm its governance arrangements and if there had been any changes. There were not many changes unless government required additional information, there had been a change in structure, or any issues emerged from independent reviews. Changes specific to the AGS would not require the Constitution to be updated.

Resolved: That the Committee noted and endorsed

1. The self-assessment and the Annual Governance Statement based on this and recommended that the Chair of the Authority sign the Statement.
2. The updated Local Code of Governance