Agenda item

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

The report of the Head of Profession (HR) and Transformation incorporating the Draft Annual Governance Statement for 2024/25 was presented for the committee’s consideration.

The Corporate Planning, Performance and Programme Manager presented the report which had been prepared in accordance with the principles set out in the CIPFA/SOLACE Framework for Delivering Good Governance in Local Government. He drew attention to the annual review of the effectiveness of the Council’s Governance Framework, highlighting the conclusions set out on page 5. These demonstrate how the Council’s governance arrangements align with those principles. He also outlined the actions taken and progress made in addressing governance issues identified in the previous year, as well as current governance challenges and the plans in place to address them in the year ahead.

 In reviewing the Annual Governance Statement the committee raised the following points –

• It was suggested that the progress update on addressing governance matters from the previous year would benefit from the inclusion of RAG (Red, Amber, Green) status indicators for each issue to support more effective analysis.

The Corporate Planning, Performance and Programme Manager confirmed that the  statement would be amended to incorporate RAG status information prior to its finalisation.

• The committee noted that the review concludes, under principle F (Managing risks and performance through robust internal control and string public financial management) that the Council has an effective performance management system that enables efficient and effective service delivery. The committee requested assurance that this conclusion is evidence-based.

In response, the Corporate Planning, Performance and Programme Manager stated that  the Council’s performance management process is acknowledged in the Council Plan and is regarded as robust. Key elements of this process include quarterly monitoring of the corporate scorecard by both Scrutiny and the Executive, regular oversight of service business plans, the Annual Performance Report which is reviewed and monitored by the Programme Board and the statutory Annual Self-Assessment conducted by the Council. The Corporate Planning, Performance and Programme Manager confirmed that the self-assessment for 2024/25 has been recently completed, and its findings will be reported to both this committee and to the Executive to provide assurance regarding the performance of the Council’s services.

• The committee queried whether, in relation to the identified governance matters for 2024/25, it would be more effective to assign priority to the issues listed, rather than scheduling all for completion by the end of March 2026.

In response, the Corporate Planning, Performance and Programme Manager explained that while governance matters often require long-term attention, the improvement actions identified for 2024/25 are intended to be addressed within the current financial year. He confirmed that as was done last year, he would provide a mid-year update for the committee to offer assurance that progress is being made on these actions.

• With regard to the governance matters from the previous year, the committee noted that staff retention for 2024/25 stood at 82%. The committee expressed concern that an 18% attrition rate appeared high and queried what proportion of this figure was attributable to natural wastage as opposed to staff leaving for better opportunities elsewhere.

The Corporate Planning, Performance and Programme Manager acknowledged that he   did not have the information immediately available but committed to obtaining the relevant data for the committee. Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing recalled that this issue had been raised during the Executive’s  discussions on the corporate scorecard. He noted that the reported percentage may include staff who have moved to other roles within the Council, which could distort the overall attrition figure. He highlighted the importance of distinguishing internal transfers from external departures to provide a more accurate picture.

It was resolved to approve the Draft Annual Governance Statement that will form part of the 2024/25 Statement of the Accounts.

Additional Actions –

·      The final version of the statement to include RAG status indicators for the  governance matters identified in the previous year.

·      The Committee to be provided with an update on progress against the governance matters identified through the 2024/25 assessment process at its December 2025 meeting.

·      The committee’s members to be provided with an analysis of the staff attrition rate, including a breakdown of internal movements as opposed to external exits.