ITEM AU6
AUDIT COMMITTEE –24 JUNE 2008
ANNUAL GOVERNANCE STATEMENT 2008/09
Report by the County Solicitor and Chief Finance Officer
Introduction
1. The County 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. Corporate governance is the framework of accountability to users, stakeholders and the wider community, within which organisations take decisions, and lead and control their functions, to achieve their objectives. The quality of corporate governance arrangements is a key determinant of the quality for services provided by organisations. This statement explains how the County Council has complied with the Code and also meets the requirements of regulation 4(2) of the Accounts and Audit Regulations 2003 as amended by the Accounts and Audit (Amendment) (England) Regulations 2006 in relation to the publication of a Statement on Internal Control.
Compilation of the Annual Governance Statement
2. On 21 January 2009 the
Audit Committee agreed the updated process for gaining assurance on risk
management and internal control. Heads of Service have been required to
complete a risk register for their service on a quarterly basis since August
2004. Additionally Business Managers and other Service Managers are required to
complete an Internal Control Checklist bi-annually. The Checklist asks a series
of key questions relating to the following areas: (a) Risk management; (b) Performance management; (c) Financial management; (d) Legislation; (e) Human resources; (f) Procurement/contracts; (g) Information technology; (h) Project management; (i) Partnerships; (j) Other significant control issues. Action plans are required for all areas that are not considered by the Business Manager to be fully compliant.
3. Heads of Service, Business Managers and other Senior Officers are required to sign Certificates of Assurance to confirm that they have updated the documents. Risk registers and internal control checklists are then reviewed by the relevant Director, who also signs a Certificate of Assurance to confirm that he has discussed and agreed the documents.
4. Risk registers and internal control checklists are reviewed by the Corporate Governance Assurance Group, a group of senior officers, chaired by the County Solicitor. Progress is reported quarterly to the Audit Working Group.
5. The Internal Audit function completed an annual review of the Internal Control Checklists, covering all directorates. Some issues were identified, however overall the audit found the process to be reliable and robust.
Annual Governance Statement 2008/09
6. The Annual Governance
Statement 2008/09 is attached at Annex 1 (download as .doc file) and has been
compiled by the members of the Corporate Governance Assurance Group drawing on
the following information: (i) Risk Registers compiled by Heads of Service and endorsed by Directors; (ii) Internal Control Checklists compiled by Business Managers other senior managers and endorsed by Directors; (i) The view of the Assistant Head of Finance (Audit); (ii) The view of the Chairman of the Audit Working Group; (iii) The view of the external auditor as contained within the annual audit and inspection letter; (iv) Reports by other independent inspection bodies.
7. All members of the County Council Management Team (CCMT) have been consulted on the draft Annual Governance Statement. As required by the Regulations, it has been signed by the Chief Executive and Leader of the Council and additionally the Chief Finance Officer and the Monitoring Officer.
8. Progress on actions identified as part of the assurance process will be monitored by the Corporate Governance Assurance Group and reported to the Audit Working Group and Audit Committee on a regular basis.
Production of the Statement for 2009/10 and Beyond
9. All directorates have
continued their progress in embedding the assurance process. During 2009/10
there will also need to be a further review of the guidance notes within the
internal control checklist in accordance with the Internal Audit Report
recommendations. RECOMMENDATION
10. The Committee is RECOMMENDED to approve the Annual Governance Statement 2008/09 for inclusion in the annual Statement of Accounts, subject to the County Solicitor & Monitoring Officer, following consultation with the Leader of the Council, Chief Executive and Section 151 Officer, making any necessary amendments in the light of comments made by the Committee.
P G CLARK SUE SCANE County Solicitor Assistant Chief Executive & Chief Corporate Core Finance Officer Corporate Core
Background Papers: Nil
Contact Officers: Peter Clark, County Solicitor , Tel 01865 323907 Georgina Paton, Principal Finance Manager (Corporate & Professional Standards), Tel 01865 323982
June 2009
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