Agenda item

To consider a report by the Head of Internal Audit (copy enclosed) which provides the final consultation on the self-assessment report on the Council’s governance and improvement arrangements for 2013/14.

A report by the Head of Internal Audit (HIA), which provided the final consultation with the Committee on the self-assessment report on the Council’s governance and improvement arrangements for 2013/14, had been circulated previously.

The report replaced the Council’s Annual Governance Statement, by combining the previous governance self-assessment and corporate self-assessment.  It was good practice to consult widely on the self-assessment with Members and senior management and to develop an ‘annual governance statement’ (AGS) which formed part of the Council’s Statement of Accounts.  However, there had been some duplication between the self-assessment needed for the AGS and the corporate self-assessment which focused more on continuous improvement.  It had therefore been decided to combine the documents to provide an innovative approach which saved resources and provided a joined-up approach to self-assessment within the Council.

The HIA explained that Appendix 1 provided a Draft document “Delivering Good Governance and Continuous Improvement” which was now in its final stages of consultation with Members and senior management.  Minor changes had been included and the last quarter’s performance figures would be added when finalised.  The CEO and Leader would be required to sign the agreed final version by the 30^th June, 2014 and it would be presented to the Committee with the Statement of Accounts in September, 2014.

Members were informed that the document had been discussed at:-

·                 Corporate Executive Team on 17^th March, 2014

·                 Corporate Governance Committee on 15^th April, 2014

·                 Council Briefing on 28^th April, 2014

·                 Senior Leadership Team on 1^st May, 2014

It had also been distributed to Cabinet Members and the WAO for comment.

The HIA made reference to two significant governance issues included in the report which related to procurement of construction services and arm’s length organisations, and provided a summary of the information contained in the report.

Mr P. Whitham referred to the WAO report on procurement of school building maintenance and the outcomes of the construction procurement audit.  The WOA report had indicated a figure of approximately £0.5m in relation to the procurement directed by the Council to school building maintenance.  He explained that the Chief Accountant had provided figures for the current financial year which indicated a figure of £28.4m capital expenditure for construction procurement and £9.3 for revenue totalling £37.7m per annum which was significantly more than the WAO report had indicated which he felt had highlighted a significant governance issue in terms of the work undertaken.  Mr Whitham also referred to the adverse report previously received in respect of Strategic HR and the relevant budget issues which provided comparable figures, particular reference being made to the impact of the contract procedure rules on the budget figures provided.  He expressed the view that Construction Procurement and Contract Procedures Rules could be viewed and addressed as separate governance issues, and the HIA agreed to liaise with the HFA in respect of this matter.

The HLDS made reference to the work currently being undertaken by the HFA in respect of Procurement issues and CPR’s and he confirmed that a report would be submitted to Cabinet on the 27^th May, 2014 in respect of this matter.  The HIA noted the comments made by Members of the Committee.

In response to concerns expressed by Councillor J. Butterfield that the latest resident survey had highlighted that most people do not feel well-informed about the Council’s performance and a range of other issues asked in the survey, the HIA explained that this issue would be addressed and included in the report to be presented to the Committee in September, 2014.

RESOLVED – that Corporate Governance Committee receives the report and notes Members comments.