Agenda item

The Monitoring Officer to submit a report explaining the requirements for this Council to produce an Annual Governance Statement (AGS) and requesting the Committee approve it.

The Monitoring Officer

 

(a)  submitted a report (copies of which had previously been circulated to Members) explaining the requirements for this Council to produce an Annual Governance Statement (AGS) and requesting the Committee approve it;

 

(b)  advised that the AGS demonstrated the Council’s compliance with its Local Code of Corporate Governance.  In discharging its obligations, the Council was responsible for putting in place appropriate arrangements for the governance of its affairs and for ensuring that there was a sound system of internal control, which facilitated the effective exercise of its functions and included arrangements for the management of risk;

 

(c)  confirmed that a revised Local Code of Corporate Governance would be submitted to a future meeting of this Committee;

 

(d)  stated that the Council had an established officer Corporate Governance Group, composed of the Head of Paid Service, S151 Officer, Monitoring Officer and Solicitor to the Council, to oversee these matters.  In the future, the content of the meetings would be considered by Senior Management Team, to ensure a corporate responsibility for good governance, as well as ad hoc meetings of statutory officers where required;

 

(e)  highlighted

 

                      i.        the Council’s commitment to integrity and ethical values

                    ii.        this Committee reviewed changes to the Council’s Constitution on an ongoing basis and considered an annual review of changes.  Minor alterations to the process of updating the Constitution were being considered

                   iii.        Members had to consider ethical standards and probity and relevant training on ethical values was undertaken by Members and officers on a regular basis.  The 2016 Internal Audit report on ethical standards and probity arrangements found substantial assurance, the highest level available.

                   iv.        the Council promoted ethical standards and ensured its contractors complied with these standards.  The Council used a Standard Selection Questionnaire in all procurements valued over £50k and depending on the nature of the procurement, relevant and specific questions may be asked within the tender itself.  An audit of procurement compliance had concluded that there was a good control environment, together with satisfactory compliance.

                    v.        the Council had in place a suite of regularly updated policies and strategies, covering both internal and external issues, which were available to staff and the public via the internal MIKE site and the Council’s website.

                   vi.        the Council’s Corporate Health and Safety Policy was in place.  An annual statement on Health and Safety was prepared and reported to Senior Management Team and the Council had a Safety Committee, on which the Senior Management Team was represented

 

(f)   advised that the Council valued and ensured openness and comprehensive stakeholder engagement.  A Consultation Toolkit was used to guide effective and appropriate consultation.  The Council had established partnership working and consultation with a number of different partners and organisations and had excellent relations with recognised trade unions;

 

(g)  commented on how the Council focussed on its performance through the Corporate Peer Challenge, which had led to a number of recommendations, which the Council had agreed.  There had been significant work undertaken with Members to identify the key vision and Corporate priorities for the Council.  These changes would be significant and whilst they would come in to effect immediately, the next Council year would be a transition, with the full arrangements being in place for the 2019/20 year;

 

(h)  advised that the Council was resourceful and had well established flexible working practices, which enabled good levels of productivity to be achieved.  The Chief Executive was driving a new Workforce Strategy, which would further assist in ensuring that the Council maximised the potential of available staffing resources.  The Council had managed to maintain a healthy training budget to assist with staff and Member development.  Additional senior level capacity had been achieved with the creation of two new posts, as part of a Senior Management realignment.  In addition, there was a programme of recruitment taking place to ensure that capacity was maximised, as well as further structural reviews;

 

(i)    confirmed that an up to date and regularly reviewed Risk Management Policy and Strategy was maintained.  This required that both service and corporate risk registers were maintained with appropriate action plans to mitigate and manage identified risks.  These risk registers were reviewed and updated by Senior Management Team, as appropriate.  A full review had been undertaken during 2017/18, with the revised policy and updated strategic risk register being approved at a meeting of this Committee in June;

 

(j)    highlighted that the Council was making some significant changes to the management of performance.  An updated suite of performance measures would be introduced in 2018/19 and would be reported to individual policy committees project management/appraisal process – looking at these;

 

(k)  advised that the Council had a duty to maintain an Internal Audit service.  Based on work undertaken during 2017/18, Internal Audit’s overall opinion on the Council’s control environment was that of Satisfactory Assurance.  An opinion of at least Satisfactory Assurance was given for controls relating to the key financial systems.  Of the Internal Audit assignments delivered during 2017/18, two had resulted in an opinion of less than satisfactory.  These related to Safe Driving at Work and Development Control.  The Council was taking action to address Internal Audit’s findings and ensure its governance arrangements were robust;

 

(l)    confirmed that information security through the General Data Protection Regulations (GDPR) had been implemented throughout the Council;

 

(m) advised that the following areas had been identified as issues of focus during 2018/19:-

·         capacity across the council

·         lack of focus caused by too many priorities

·         the committee structures

·         the delegation scheme not being as effective as it should be

·         MMDR funding

·         no balanced budget for 2018/19 and dependency on achieving some high risk activities

 

These areas would be developed and managed over the year.

 

A Member highlighted the Risk Description at paragraph 9.1 of the report, querying how the reputation and performance of the Council could be affected.  The Monitoring Officer clarified that if the requirements detailed in the report were not complied with, there would be a risk to the reputation and performance of the Council (eg non-compliance with General Data Protection Regulations);

 

The Member asked if there were any financial implications of non-compliance.  The Monitoring Officer advised that there were always financial implications if there was an absence of good governance (eg wasting public money) and added that the Annual Governance Statement highlighted that the Council did have good governance measures in place.

 

Another Member noted the less than Satisfactory Assurance which had been given by Internal Audit for the Safe Driving at Work and Development Control audits.  He asked how Members of this Committee would be updated on the action taken.

 

The Monitoring Officer confirmed that the Head of Internal Audit would provide an update to a future meeting of this Committee.  The Chief Executive added that the Head of Internal Audit periodically attended Senior Management Team and action would not be overlooked.

 

Another Member commented that the Annual Governance Statement was very user friendly and the tables within the document conveyed information well.

 

There being no further comments or questions from Members, it was

 

RESOLVED that this Council’s draft Annual Governance Statement (AGS) be approved.