Agenda item

The Annual Governance Statement (AGS) is an important document which provides assurance concerning the council’s governance arrangements, both financial and non-financial. It is prepared on an annual basis for inclusion in the Statement of Accounts. This report seeks the Committee’s approval of the draft AGS 2024-25.

The Annual Governance Statement (AGS) is an important document which provides assurance concerning the council’s governance arrangements, both financial and non-financial. It is prepared on an annual basis for inclusion in the Statement of Accounts. The Committee received a report seeking the Committee’s approval of the draft AGS 2024-25.

The following matters were considered:

a)            Page 101. A Member of the Committee asked if the statement made by the Monitoring Officer, ‘The Council shall be considering the commencement of a Community Governance Review (CGR) at its extraordinary full council meeting scheduled for 26 June 2025,’ could be updated to reflect the fact that the meeting and decision have taken place. The Corporate Governance and Strategy Manager explained that the report has a long lead in time, which explains why the statement references a meeting that has now taken place. The Corporate Governance and Strategy Manager confirmed that the requested change can be made.

b)            Page 102. A Member of the Committee highlighted the final section on page 102, regarding the Council’s External Auditors’ comments, and asked for clarification, as it was their understanding that the statement was untrue. The Chair stated that it was their understanding that the statement is true. The Member quoted the February 2025 External Auditors’ Findings report, ‘We have raised a significant weakness in respect of the Council’s governance arrangements,’ and reiterated that they do not believe the statement in the Annual Governance Statement is correct. The Member also raised their concern that the External Auditors’ findings have been dismissed and not taken seriously by the Council’s Strategic Leadership Team. The Chair noted the comments. The Chair raised that if further amendments are to be made of the Annual Governance Statement, that they can be made and then circulated to Members or return to Committee. The Member stated that the AGS must say explicitly that the External Auditors identified a serious weakness in relation to the Council’s governance.

c)            CIPFA Principle G. A Member of the Committee raised that they were unhappy with the green light being given for implementing good practices in transparency. The Member expressed that this is inappropriate and unacceptable given the External Auditors’ finding of a significant weakness in the Council’s governance arrangements. The Chair noted the comments and raised that the issues raised would be taken back to Officers and the AGS rereviewed.

d)            Page 115. A Member of the Committee asked why there are no actions listed on the AGS Action Plan which relate to transparency and taking action to improve it. The Member quoted the comments of the previous Director of Corporate Services (S151) at the February 2025 meeting, ‘expressed that the Strategic Leadership Team acknowledge the recommendation of the external auditors to the Council and take it on board and fully understand the need for transparency and appreciate there is more work to be done to provide that as much as possible,’ and the March 2025 meeting, ‘informed the Committee that the Strategic Leadership Team do accept the recommendations of the External Auditors, and the comments from the Committee, and do intend to continue to deliver improvements in the areas identified.’ The Member queried why the AGS does not reflect the acknowledgement and comments of the previous S151 Officer in regarding to making improvements when it comes to transparency.  The Member asked why there are no actions listed on page 115 as promised by the previous S151 Officer. The Chair noted the comments and reminded the Member that the green traffic light mentioned, covers several other items that this Council deals with, not just the transparency matter. The Chair confirmed that the queries could be taken back to the Strategic Leadership Team and response can be provided following the meeting. The Member put on the record that the absence of any reference to improving transparency, improving governance in the additions to the AGS Action Plan undercuts the statements that the Member has read out by the previous S151 Officer.

e)            Strategic Priorities. A Member of the Committee queried that in section D on page 106, it reads as though the Council’s Strategic Priorities will enable and optimise the achievement of the intended outcomes, rather than that they are the Council’s intended outcomes. The Chair noted the comments and confirmed they would be reviewed.

·                     The Chair proposed that the following wording, italicised and in bold, is added to recommendation one,

‘(1) Approve the 2024-25 draft Annual Governance Statement as set out at Appendix 1, noting the questions and comments raised by Audit and Scrutiny Members, prior to it being signed by the Chief Executive and the Chair of the Strategy and Resources Committee and received to note by Full Council.’

Councillor Kelly seconded the proposal.

The Committee agreed (6 FOR and 1 ABSTAINING) the proposal to include the additional wording in recommendation one.

Following consideration, the Committee resolved (6 FOR, 1 ABSTAINING) to:

(1)      Approve the 2024-25 draft Annual Governance Statement as set out at Appendix 1, noting the questions and comments raised by Audit and Scrutiny Members, prior to it being signed by the Chief Executive and the Chair of the Strategy and Resources Committee and received to note by Full Council.

(2)      Nominate and authorise the Chief Finance Officer, in consultation with the Chair and Vice-Chair of Audit & Scrutiny Committee, to make any required amendments to the Annual Governance Statement prior to its submission with the Statement of Accounts.