Agenda item

(Section 151 Officer)   To consider and approve the Council’s Annual Governance Statement for 2019/20 (AGC-008-2020/21).

The Chief Internal Auditor, S Marsh, presented a report on the Council’s Annual Governance Statement for 2019/20.

S Marsh reminded the Committee that the Council’s Statutory Statement of Accounts had to be prepared in accordance with the Accounts & Audit Regulations 2015. Within the regulations, and in accordance with defined ‘proper practice’, there was a mandatory requirement to publish an Annual Governance Statement to accompany the Statutory Statement of Accounts. These arrangements were designed to provide stakeholders with assurance regarding the adequacy of the Council’s governance arrangements, and identify those areas where improvements were required.

S Marsh reported that the Annual Governance statement had identified progress on four significant governance issues during 2019/20; these being:

            (i)         Business Continuity Planning;

(ii)        the Economic Climate, and in particular the continuing uncertainty over Brexit;

(iii)       the compliance of the Council’s statutory posts with relevant legislation; and

(iv)       the close down of the Council’s Accounts.

S Marsh informed the Committee that four areas had been identified for improvement or monitoring during 2020/21; these being:

(i)         the monitoring and mitigation of risks to the achievement of the Council’s objectives;

(ii)        financial resilience due to the Covid-19 pandemic;

(iii)       the health and safety of staff, partners and the public during the Covid-19 pandemic; and

(iv)       the governance arrangements for the new Qualis group of companies.

S Marsh added that a number of common themes had been identified, including the need for a consistent Project Management approach, documented procedures and guidance notes to support critical functions, and the identification of mandatory training requirements for all staff.

S Marsh stated that the Annual Governance statement demonstrated the Council’s governance arrangements had remained ‘fit for purpose’, even when the Leader of Council invoked his Emergency Powers at the start of the Covid-19 pandemic in March 2020, and there had been no significant detrimental effect on the Council’s ability to deliver its services. The longer term impact of the pandemic on the governance framework would be monitored throughout 2020/21.

In respect of the Council’s procedures and guidance notes, Cllr I Hadley commented that it would be beneficial to review them at some stage, and also enquired if all of the processes were in the same format? Cllr S Heap also added that the Council needed a standard process to ensure that future handovers were handled efficiently. S Marsh responded that that was being progressed.

Cllr S Heap asked in respect of the Financial Resilience item whether the Council was particularly worried about its current levels of debt, which he estimated to be approximately £8million (or about £61 per resident of the District). A Small agreed that the current debt was relatively small, but the Council needed to maintain an adequate level of reserves and the Covid-19 pandemic would have an impact on this. In addition, the financial landscape would be more complicated over the next few years so the Council could conceivably need a higher level of reserves. It would be unsustainable for the Council to continually borrow money to fund its revenue budgets, and it was important to ensure that the Council’s budget was balanced over the longer-term.

In relation to the close down of the Council’s accounts for 2018/19, Cllr R Jennings highlighted that there had been an increase in the audit fee charged to the Council and asked if the Council was content that the audit of last year’s accounts had been a thorough one? A Small stated that, ultimately, the Auditors had signed off the accounts so it would be difficult for the Council to criticise them, and highlighted that there was pressure on audit fees nationally due to a number of enhanced obligations. Officers would ascertain the exact increase in the audit fees and inform the Committee of this figure.

Resolved:

(1) That the Annual Governance Statement for 2019/20 be approved.