To consider the report.

The Head of Law and Governance presented the 2017/18 Annual Governance Statement. It was recommended that the Audit and Performance Review Panel consider the report and recommend the statement to the Leader and Managing Director for signature and presentation with the Annual Statement of Accounts. 

The Panel were informed that the Annual Governance Statement was produced to ensure that the Council meets its statutory requirements and those of this Panel’s Terms of Reference to be satisfied that the Council has in place appropriate corporate governance systems and controls.

Cllr Smith informed that he had proof read the document and forwarded comments to the Principal Member for HR, Legal and IT.  Cllr Brimacombe mentioned that there were spelling errors within the report.

With regards to the action plan Cllr Smith referenced AGS 18.2 – Lack of and timeliness of responses to internal audit reports, and asked who were responsible to responding to the reports.  The Panel were informed that the appropriate service area responded to reports.

The Panel were also informed that with regards to AGS 18.3 – Budget Pressures the expected outcome would be changed from reporting to Cabinet to reporting to SMT as budget pressures were already reported to Cabinet.

Cllr Brimacombe felt that there needed to be some tie in with this report and the constitutional review as there was a symbiotic relationship.  The Panel were informed that the report looked at common themes and risks across service areas and good governance. 

Cllr Brimacombe said that section 1.2 of appendix A said ‘to ensure adherence to these requirements..’ but the document cannot ensure compliance and it assurance should be used instead. 

Cllr D Wilson mentioned that AGS 18.1- Business Continuity Plans, said that a  formal response to the 2017/18 draft Internal audit report is still outstanding.  Cllr D Wilson mentioned that this should have been actioned by now.  The Panel were informed that it should have been  a target date for the independent review of business continuity plans. 

(Cllr E Wilson joined the meeting)

Cllr L Evans asked if the peer review findings should be added to the report and was informed that this was a separate issue as this dealt with operational issues of the Council.

Cllr L Evans also mentioned that paragraph 5.4 made reference to the ongoing transformation programme and asked if governance arrangements with outsourced services and our partners should be included.  The Panel were informed that each service provided management assurance statements and that the director for commissioning would be responsible for statements covering outsourced services.  The statements cover all our services with each service area dealing with their own risks.  Cllr L Evans mentioned that this would not allow us to catch unknown unknowns.

Cllr Brimacombe mentioned that if the wrong thing was done correctly this would not be picked up by governance.

In response to concern raised by Cllr E Wilson regarding the lack of and timeliness of responses to internal audit reports, the Panel considered how they should monitor this to ensure that SMT were taking appropriate reviews.  It was felt that, as with risks being reviewed by SMT, that there should be a trigger put in place that if SMT are not monitoring then they should be brought to this Panel.  This should be accompanied by the Panel receiving 6 monthly updates.  This proposed process was approved.

Resolved unanimously:  that the Audit and Performance Review Panel notes the report and:

·         Consider the draft 2017/18 AGS; and

·         Recommend the 2017/18 AGS to the Leader and Managing Director for signature and publication with the Council’s Statement of Accounts.