Issue - meetings

That the Annual Governance Statement attached to the Statement of Accounts be approved subject to delegated authority granted to the Chief Executive to update and change the emphasis of Section 5.

The Democracy & Governance Manager introduced a report for the Committee to consider and approve the draft Annual Governance Statement (AGS), which was included as pages 105-119 of the Statement of Accounts.  He explained the involvement of the Corporate Governance Officer Working Group in the preparation of the draft AGS which also included a number of amendments suggested by members of the Committee during an informal briefing at which the draft document had been shared.  Members’ attention was drawn to the four key areas of consideration.

Councillor P.G. Heesom welcomed the report and thanked the officer team for the work undertaken since the informal briefing.  However he felt that the document could be reduced further and questioned the need to include Section 5 on significant governance issues if the document was meant to be generic, suggesting that an annexe may be more appropriate.

The Democracy & Governance Manager explained that the format of the AGS complied with joint guidance issued by the Chartered Institute of Public Finance & Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE).  Comments previously raised by the Wales Audit Office (WAO) had led to a more co-ordinated approach, resulting in the establishment of the working group to prepare the AGS for the year ending 31 March 2012, when no comments or criticism had been received.  The inclusion of Section 5 in the AGS, incorporating high ‘red’ risk areas of the Strategic Assessment of Risks & Challenges (SARC), had been agreed by senior officers and reflected the comments previously made by WAO.  It was intended for a report to be submitted to the Committee in December 2013 to provide further Member involvement at the start of the process next year.

The Head of Legal & Democratic Services reiterated the importance of earlier involvement and challenge by Members before the final approval stage and commented on future changes to the analysis of major risks which would be reflected in the AGS.

In responding to Councillor Heesom’s comments, the Chief Executive said that a balance was needed between Sections 4 and 5 of the AGS.  Although further changes could not be made without compromising meanings, he agreed to review Section 5 and would also incorporate an update on the level of risk with Betsi Cadwaladr University Health Board as well as ensuring that other issues were covered such as regional governance on collaboration, uncertainty arising from national reviews and achieving the Welsh Housing Quality Standard in anticipation of the response from WG on the revised Housing Business Plan.

Ms. Hughes of WAO reminded the Committee that the AGS formed part of the Statement of Accounts as a public document and that although the guidance had been followed, the level of detail and layout was for the Committee to determine.  She said that the key consideration for the Committee was to be satisfied by governance arrangements operating throughout the year and added that previous minor issues raised by WAO, including that for additional Member engagement, had been  ...  view the full minutes text for item 19