Agenda item

To present the report of the Head of Profession (HR) and Corporate Transformation.

The report of the Head of Profession (HR) and Transformation incorporating the draft Annual Governance Statement (AGS) for 2021/22 was presented for the Committee’s consideration.

Councillor Robin Williams, Portfolio Member for Finance, Corporate Business and Customer Satisfaction presented the draft Annual Governance Statement for 2021/22 which demonstrates how during the year, the Council’s governance arrangements fulfilled each of the principles contained within the CIPFA/SOLACE Framework for Delivering Good Governance in Local Government.

The Council is responsible for ensuring that it conducts its business in accordance with the law and proper standards and that it safeguards and properly accounts for public money and how public money is used. The Council also has a duty under the Local Government and Elections (Wales) Act 2021 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. In discharging this overall responsibility the Council has also a duty to put in place proper arrangements for the governance of its affairs, facilitating the effective exercise of its functions which includes arrangements for the management of risk together with adequate financial management. The Council approved and adopted a revised local code of corporate governance in March, 2022 which is consistent with the principles of the CIPFA/SOLACE Framework. The AGS shows how the Council has complied with the Code and meets the requirements of proper practice and Accounts and Audit (Wales) Regulations.

The Head of Profession (HR) and Transformation said that the Annual Governance Statement and the previous Self-Assessment Report complement each other. She confirmed that while no significant governance matters were identified in 2021/22 the self-assessment process did identify the governance issues listed at page 10 of the report that will be addressed during 2022/23.

In the ensuing discussion the Committee made the following points –

·                     Requested clarification of action 3 in the table on the progress made in 2021/22 on governance matters identified during 2020/21 wherein it was confirmed that matters [pertaining to the Local Government and Elections (Wales) Act 2021] requiring attention in 2021/22 had been implemented but stated also that further work on remaining matters needing attention was planned for 2022/23.

The Chief Executive clarified that some elements of the work had been completed and implemented and that other elements e.g. reviewing and updating the Constitution and introducing a Petition Scheme are work in progress to be completed in the current financial year.

·                     Requested clarification of point 3 in the table which lists governance matters identified by the Self-Assessment process wherein it was stated that failure to comply with new responsibilities and changes introduced by the  Local Government and Elections (Wales) Act 2021 could lead to further scrutiny by Welsh Government and a loss of reputation.

The Chief Executive clarified that the Act imposes new duties and responsibilities on the Council some of which have been implemented and others which are work in progress which if not fully implemented could have a reputational impact on the Council. It is the aim that next year’s report should confirm that all matters identified in the 2021/22 report will have been addressed.

·                     Highlighted that despite the expectation that the council should strive to continuously improve, the overall assessment rating against the core principles of the Framework has remained “Good” in consecutive years with no movement upwards to the next level.

The Chief Executive advised that the categories are broad in scope and that to uprate to “Excellent” would require the Council to be able to demonstrate innovative practices which is not always easy to do with regard to governance. The Head of Profession (HR) and Transformation clarified that the rating system does not reflect movement within categories.

·                     Queried whether the objective is to keep refining the Annual Governance Statement to reduce its length and whether the Council benchmarks its AGS against that of other councils both within Wales and further afield. Although the inclusion of the more detailed information via appendices rather than in the body of the report was welcomed a suggestion was made that a condensed version might be helpful for public consumption while a longer version could be retained for the internal reference of the Council and for its regulators.

The Chief Executive advised that the Council is part of a range of networks which provide a platform for the exchange of best practice and that many of its processes have been recognised as best practice by other councils. The Head of Profession (HR) and Transformation confirmed that the practice in other councils has been considered and that efforts will continue to be made to ensure that the AGS is concise, readable and contains only the necessary key elements.

It was resolved –

• To approve the Draft Annual Governance Statement that will form part of the 2021/22 Statement of Accounts.
• To delegate authority to the Chair and the Head of Function (Resources)/Section 151 Officer to make further minor amendments to the Annual Governance Statement prior to its inclusion in the final version of the Statement of Accounts.