To seek approval of the Annual Governance Statement for 2016/17.

The Audit and Governance Manager submitted the Annual Governance Statement 2016/17 for the Committee’s approval.

It was reported that a new format had been devised for the Annual Governance Statement to inform Members and the public in a proactive way of the effectiveness of the Council’s governance arrangements. The Annual Governance Statement had been drafted taking account of the new CIPFA / SOLACE framework.

The Committee was informed that the CIPFA / SOLACE framework identified that an Annual Governance Statement should include:-

·         An acknowledgement of responsibility for ensuring that there was a sound system of governance (incorporating the system of internal control) and reference to the Council’s Code of Governance;

·         Reference to, and assessment of, the effectiveness of key elements of the governance framework and the role of those responsible for the development and maintenance of the governance environment, such as the Authority, the Executive, the Audit Committee, Internal Audit, and others as appropriate;

·         An opinion on the level of assurance that the governance arrangements could provide and that the arrangements continued to be regarded as fit for purpose in accordance with the governance framework;

·         An agreed action plan showing actions taken, or proposed, to deal with significant governance issues;

·         Reference to how issues raised in the previous year’s annual governance statement had been resolved; and

·         A conclusion – a commitment to monitoring implementation as part of the next annual review.

Members were aware that the CIPFA / SOLACE framework required the Annual Governance Statement to be approved at a meeting of the Authority, or a delegated committee - this role had been delegated to the Audit Committee. The framework also required that the Statement be signed by the Leader of the Council and the Chief Executive, on behalf of the Council.

The Committee was informed that the CIPFA /Solace framework no longer provided a model statement that could be adopted, and it was up to each Authority to produce a compliant statement in a form of their choosing. The format adopted reflected the structure identified in the CIPFA / SOLACE framework above.

The Annual Governance Statement for 2016/17 was attached at Appendix A for approval by the Committee. It would then be subject to audit by the Council’s external auditors, following which it must be signed by the Leader of the Council and the Chief Executive, and appended to the Council’s Statement of Accounts. If any changes were required following audit, then a revised Annual Governance Statement would require the Committee’s approval.

Members were advised that the Leader of the Council and the Chief Executive were required to be advised of the implications of the results of the annual review of the governance framework and that actions were in place to address any weaknesses. In this respect, the Governance Framework in place for 2016/17 was considered to be robust with improvements made during the year, and significant issues that did arise identified. A number of ongoing or forthcoming items had been identified for progression in 2017/18. To monitor progress, those improvement items would be reported to Members as appropriate.

After consideration of the report, it was RESOLVED that the Annual Governance Statement 2016/17 be approved.