Issue - meetings

Councillors noted that, under the Accounts and Audit Regulations 2015, the Council was required to prepare an Annual Governance Statement (AGS) detailing the governance framework and procedures that had operated at the Council during the year, a review of their effectiveness, significant governance issues that had occurred and a statement of assurance. 

The 2015 Regulations also required the Council to publish the AGS alongside the adopted statement of accounts each year.

In recent years, the Executive had approved the AGS on the recommendation of the Corporate Governance and Standards Committee. Officers were now of the view that approval of the AGS was probably a non-Executive function and should be carried out either by the full Council or, in common with many councils which had delegated the function to an audit (or equivalent) committee, by the Corporate Governance and Standards Committee.

The Council was also required by the 2015 Regulations to ensure that it had a sound system of internal control which:

(a)   facilitates the effective exercise of its functions and the achievement of its aims and objectives;

(b)   ensures that the financial and operational management of the authority is effective; and

(c)   includes effective arrangements for the management of risk.

The Council must review of the effectiveness of the system of internal control for each financial year and at the same time prepare the AGS. The AGS was the mechanism by which this review was undertaken.

It was clear that the relevant item in the existing terms of reference of the Corporate Governance and Standards Committee required an update to actually refer to the AGS.  The terms of reference currently stated under Corporate Governance Activity:

“(14) To consider the Council’s statement on internal control and to recommend its adoption.”

Upon the motion of the Chairman of the Corporate Governance and Standards Committee, Councillor George Potter, seconded by the Vice-Chairman of that Committee, Councillor Deborah Seabrook, the Council

RESOLVED: That the following paragraph be substituted in place of the existing paragraph (14) of the terms of reference of the Corporate Governance and Standards Committee (under Corporate Governance Activity):

“(14) To consider and approve the Council’s Annual Governance Statement in advance of the formal approval of the Council’s Statement of Accounts”.

Reason:

To ensure the efficient and effective consideration and approval of the Council’s Annual Governance Statement each year.