Part 1 - Open to the Public ITEM NO. 6 REPORT OF: Assistant Director Legal and Governance TO: Audit and Accounts Committee ON 24 August 2016 TITLE: Annual Governance Statement 2015-2016 RECOMMENDATIONS: Members approve the council’s Annual Governance Statement 2015-16 (AGS). EXECUTIVE SUMMARY: Local Authorities are required to produce an annual statement of corporate governance. This statement is a public document and is available on the Salford City Council website. The statement contains details of the mechanisms that we have in place to ensure that the City Council’s interests are sufficiently protected and that decision making is transparent and auditable. The updated statement takes account of changes to structures, governance procedures, policies and corporate objectives which have occurred since the last update. The statement shows an “as-is” view of the governance structures but also looks at the issues we are facing in the coming financial year. Comments from Corporate Management Team and The City Mayor have been incorporated into the statement. A draft version of the AGS was presented at Audit and Accounts Committee Meeting on 22 June 2016. Comments were also made on the draft AGS by the council’s external auditors, Grant Thornton. Following these comments, amendments to the AGS have been made and this report presents the final version of the 2015-16 AGS for the City Council at Appendix 1. The AGS has now been signed by the City Director and City Mayor. BACKGROUND DOCUMENTS: City Plan; Code of Corporate Governance 1
KEY DECISION: NO DETAILS: 1) The City Council is required to produce a statement of corporate governance; this statement should be updated on at least an annual basis. The statement follows a format recommended by CIPFA. The narrative provided seeks to describe the governance issues that the City Council has faced during 2015/16 and the actions that were taken to mitigate risk and ensure accountability with agreed roles and responsibilities 2) The statement covers the governance framework and the actions of officers and elected members. It also adheres to and compliments the code of corporate governance. 3) Obviously there have been a number of notable changes since the last statement was published including the election of a new City Mayor in May 2016. There have also been senior management structural changes and re- assignment of responsibilities. 4) Members were asked to consider a draft statement at the last meeting of Audit and Accounts Committee on 22 June and highlight any areas that may not have been covered sufficiently and to correct any errors. 5) Comments were also made on the draft statement by Corporate Management Team, the City Mayor and the council’s external auditors, Grant Thornton. 6) Following these comments, amendments to the AGS have been made and a final version of the 2015-16 AGS for the City Council is attached at Appendix 1. The AGS has now been signed by the City Director and City Mayor. 7) Members are asked to approve the council’s Annual Governance Statement 2015-16. 8) The Annual Governance Statement will then be published on the Council’s web site alongside the Council’s Financial Accounts. KEY COUNCIL POLICIES: City Plan EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: Included within the body of the report ASSESSMENT OF RISK: Supplied by Miranda Carruthers-Watt Risk Management is key to our governance procedures and is addressed in the body of the report. 2
LEGAL IMPLICATIONS Supplied by: Miranda Carruthers-Watt Local authorities have a legal responsibility to conduct, at least annually, a review of the effectiveness of their governance framework including their system of internal control (Regulation 4(3) of the Accounts and Audit Regulations 2011). Following the review an Annual Governance Statement (AGS) must be produced, approved and published. FINANCIAL IMPLICATIONS Supplied by: Joanne Hardman and included in the body of the report PROCUREMENT IMPLICATIONS supplied by: Andy White and Included within the body of the report HR IMPLICATIONS Supplied by: Sam Betts and included within the body of the report OTHER DIRECTORATES CONSULTED: All CONTACT OFFICER: Andy Roberts TEL NO: 686 6274 WARDS TO WHICH REPORT RELATES: All 3
Appendix 1 ANNUAL GOVERNANCE STATEMENT 2015-16 1 SCOPE OF RESPONSIBILITY Salford City Council is responsible for ensuring that: • its business is conducted in accordance with the law and proper standards; • public money is safeguarded, properly accounted for and used economically, efficiently and effectively. The Council also has a duty under the Local Government Act 1999 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 is responsible for putting 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. Salford City Council has approved and adopted a code of corporate governance which is consistent with the principles of the CIPFA/SOLACE framework “Delivering Good Governance in Local Government and the CIPFA code of practice 2016/17”. A copy of the authority’s code is on our website at http://www.salford.gov.uk/corporategovernance or can be obtained by writing to the council’s Assistant Director, Legal and Governance and Monitoring Officer. This statement explains how Salford City Council has complied with the code and also meets the requirements of Accounts and Audit (England) Regulations 2011, regulation 4(3) which requires all relevant bodies to prepare an annual governance statement. 2 THE PURPOSE OF THE GOVERNANCE FRAMEWORK The governance framework comprises the systems, processes, cultures and values by which the Council is directed and controlled and activities through which it accounts to, engages with and leads the community. It enables the Council to monitor the achievement of its objectives and to consider whether those objectives have led to the delivery of appropriate services and value for money. The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Council’s policies, aims and objectives. It is also used to evaluate the likelihood of those risks being realised and the impact should they be realised and to manage them efficiently, effectively and economically. The governance framework, as described below has been put in place at Salford City Council for the year ended 31 March 2016 and up to the date of approval of the annual report and accounts. 4
Recommend
More recommend
