Agenda item

The Service Director, Finance and Improvement Services presented the report to Members that set out the Council’s draft Annual Governance Statement (AGS) for the 2021/22 financial year.

The Service Director, Finance and Improvement Services directed Members to paragraph 4 of the report; it was advised that the report was produced in line with the Accounts and Audit (Wales) Regulation 2018 which requires an authority to conduct a review at least once a year of the effectiveness of its system of internal control and include a statement reporting on the review within any published statement of accounts.

Members were directed to section 5 of the report which introduced the Council’s draft AGS for 2021/22, with the document being included at Appendix 1. The Service Director informed Members that the AGS had been complied in accordance with the ‘Delivering Good Governance in Local Government: Framework (2016)’, as set out in the Accounts and Audit (Wales) Regulations 2018, and also in line with the CIPFA Bulletin 06.

The Service Director, Finance and Improvement Services continued by informing Members that the compilation of the draft AGS has entailed reviewing the activities in place around the Council’s main governance arrangements as set out in the Local Code of Corporate Governance and associated key processes; engagement with senior officers across services in respect of these arrangements; and taking account of the findings from a range of existing reports including external regulatory reports. The Service Director added that the review has also had regard to the impact of the coronavirus pandemic and cost-of-living crisis on the Council’s governance arrangements.

The Service Director, Finance and Improvement Services went on to advise Members that recommendations made within the 2020/21 AGS have been implemented and a position statement was set out at Appendix A of the report.

Members were directed to paragraphs 5.17.4 to 5.17.8 that provided an overview of the work undertaken by Internal Audit and External Audit (Audit Wales) during 2021/22, noting that the outcomes from this work have been used as sources of assurance as part of reviewing the Council’s governance arrangements.

The Service Director, Finance and Improvement Services advised Members that based on the review undertaken, it has identified 7 proposals for improvement which aim to further improve the governance arrangements in place within the Council, these being set out at Section 6 of the AGS. The Service Director confirmed that the proposals for improvement have been reviewed and agreed by the Council’s Senior Leadership Team (SLT) and that a progress update will be reported to the Governance and Audit Committee during the year.

Following the Service Director’s overview, the Chair proposed for an additional paragraph to be incorporated within the AGS confirming the adequacy of the arrangements in place based on the review undertaken. Committee Members supported this update and instructed the Service Director, Finance and Improvement Services to reflect this narrative within the AGS.

Following discussion, the Governance and Audit Committee RESOLVED:

-       For the Service Director, Finance and Improvement Services to include further narrative within the AGS confirming the adequacy of the arrangements in place, based on the review undertaken.

-       To critically review the Annual Governance Statement (Appendix 1), suggest any material amendments and recommend its certification by the Leader of the Council and the Chief Executive for inclusion within the Council's 2021/22 certified draft Statement of Accounts.

-       In the event that reports from relevant External Inspectors be provided to the Council before the Statement of Accounts are approved, authorise the Director of Finance and Digital Services to include reference within the Annual Governance Statement.