Agenda Item No. 7
The Vale of Glamorgan Council
Audit Committee: 22nd September 2014
Report of the Head of Finance (Section 151 Officer)
Revised Annual Governance Statement 2013 - 2014
Purpose of the Report
1. The purpose of this report is to submit the revised Annual Governance Statement for review and to recommend its adoption by the Leader of the Council and the Managing Director.
THAT the revised Annual Governance Statement for 2013 - 2014 be recommended for adoption by the Leader and the Managing Director and their signatures appended accordingly.
Reason for the Recommendation
To provide for a review of the governance framework and the system of internal control, which has been in place within the Council for the year ended 31st March 2014.
2. The Council at its meeting held on 6th May 2009 (minute no. 1083) approved the adoption of a Code of Corporate Governance. The Code describes the Council's commitment to and understanding of corporate governance and outlines the arrangements that the Council has to put in place to ensure ongoing effective implementation and monitoring.
3. Section 4 (2) of the Accounts and Audit (Wales) Regulations 2005 as amended, requires every Welsh local authority to conduct a review, at least once in a year, of the effectiveness of its system of internal control and the governance arrangements with its Annual Statement of Accounts. The production of an Annual Governance Statement is a statutory requirement for local authorities in Wales to support the annual Statement of Accounts.
Relevant Issues and Options
4. A draft Annual Governance Statement (AGS) for the 2013/14 financial year relating to the activities of the Council was presented to the Audit Committee on 7th July 2014 and supported the unaudited Statement of Accounts. It had been drawn up with regard to the Code of Practice on Local Authority Accounting in the UK: A Statement of Recommended Practice (SORP). It also had regard to guidance issued by CIPFA/SOLACE in its publication "Developing Good Governance in Local Government" and the Council's Code of Corporate Governance.
5. In accordance with requirements; attached at Appendix A is the revised Annual Governance Statement which reflects any significant events or developments that have occurred between the balance sheet date and the date on which the Annual Statement of Accounts is signed by the responsible financial officer. In particular, changes have been made to Section 11 to reflect the significant governance issues relating to the intended retirement of the Council's Managing Director - Director of Resources (Head of Paid Service). The changes have been highlighted in bold italics for ease of reference.
Resource Implications (Financial and Employment)
6. The AGS includes the requirement that public money is safeguarded, properly accounted for and used economically, efficiently and effectively.
Sustainability and Climate Change Implications
7. None directly from this Draft Annual Governance Statement.
Legal Implications (to Include Human Rights Implications)
8. Production of the Annual Governance Statement is required under the Accounts and Audit (Wales) Regulations 2005 as amended and supports the annual Statement of Accounts.
Crime and Disorder Implications
9. A proper system of internal control provides appropriate measures to prevent and detect crime and disorder.
Equal Opportunities Implications (to include Welsh Language issues)
10. None as a direct consequence of this report.
11. A sound governance framework will support the achievement of all corporate and service objectives.
Policy Framework and Budget
12. The proposals in this report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
13. No further consultation is proposed.
Relevant Scrutiny Committee
14. Corporate Resources.
Helen Smith, Operational Manager - Audit - Tele: 01656754901
External Audit Manager - Grant Thornton UK LLP.
Alan Jenkins - Head of Finance (Section 151 Officer)