Agenda Item No 6

The Vale of Glamorgan Council


Audit Committee: 26th July 2017


Report of the Managing Director


Annual Governance Statement 2016/2017


Purpose of the Report

  1. The purpose of this report is to submit the Annual Governance Statement for review and to recommend its adoption by the Leader of the Council and the Managing Director.


THAT the Annual Governance Statement for 2016/2017 be recommended for adoption by the Leader and the Managing Director.

Reason for the Recommendation

To provide for a review of the governance framework and the system of internal control, that has been in place within the Council for the year ended 31st March 2017.


  1. 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.
  2. The Accounts and Audit (Wales) Regulations 2014 as amended from time to time, requires every Welsh local authority to conduct a review, at least once In a year, of the effectiveness of its systems 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

  1. The Annual Governance Statement (AGS) should relate to the mechanism used to demonstrate that, during the financial year ended 31st March 2017, the Council had an adequate governance regime in place and all business was conducted in compliance with the existing arrangements. However, significant events or developments relating to the AGS that occur between the balance sheet date and the date on which the Annual Statement of Accounts is signed by the responsible financial officer should also be reported.
  2. The AGS for the 2016/2017 financial year relating to the activities of the Council is attached at appendix A. It has been drawn up with regard to the Code of Practice on Local Authority Accounting in the UK: A Statement of Recommended Practice (SORP). The Council's Code of Corporate Governance has been reviewed during 2016/17, the amendments made are based upon the "Delivering Good Governance in Local Government: Framework (CIPFA/SOLACE, 2016).
  3. The overall Annual Governance arrangements within the Vale of Glamorgan Council for the financial year 2016/2017 are considered to be satisfactory. However, issues relating to the unprecedented challenges the Council faces with ever diminishing funding impacting on how the Council delivers its service, embarking on an ambitious programme of transformational change makes planning for the future difficult.

Resource Implications (Financial and Employment)

  1. The AGS includes the requirement that public money is safeguarded, properly accounted for and used economically, efficiently and effectively.

Sustainability and Climate Change Implications

  1. None directly from the Annual Governance Statement.

Legal Implications (to Include Human Rights Implications)

  1. Production of the Annual Governance Statement is required under the Accounts and Audit (Wales) Regulations 2014 as amended from time to time and supports the annual Statement or Accounts.

Crime and Disorder Implications

  1. A proper system of internal control provides appropriate measures to prevent and detect crime and disorder.

Equal Opportunities Implications (to include Welsh Language issues)

  1. None as a direct consequence of this report.

Corporate/Service Objectives

  1. A sound governance framework will support the achievement of all corporate and service objectives.

Policy Framework and Budget

  1. The proposals in this report are in accordance with the policy framework budget.

Consultation (including Ward Member Consultation)

  1. No further consultation is required

Relevant Scrutiny Committee

  1. Corporate Performance and Resources.

Background Papers


Contact Officer

Carys Lord

Head of Finance / Section 151 Officer

Officers Consulted

Corporate Management Team

Responsible Officer:

Rob Thomas

Managing Director