Agenda item

Report of the Director of Finance

The Audit and Procurement Committee considered a report of the Director of Finance that sought approval of the Annual Governance Statement, attached as an Appendix to the report, which formed part of the Statement of Accounts for 2020-21.

Coventry City Council was responsible for ensuring that its business was conducted in accordance with the law and proper standards, and that public money was safeguarded and properly accounted for, and used economically, efficiently and effectively. In discharging this responsibility, the City Council was responsible for putting in place proper arrangements for the governance of its affairs and facilitating the effective exercise of its functions, including arrangements for the management of risk.

To demonstrate such arrangements, the City Council had adopted a Code of Corporate Governance, which was consistent with the principles reflected in the CIPFA/SOLACE framework and guidance ‘Delivering Good Governance in Local Government’ (2016).

The Annual Governance Statement (‘AGS’) explained how Coventry City Council had complied with the Code and in doing so, reflected the requirements of the Accounts and Audit Regulations 2015, which required all relevant bodies to prepare an Annual Governance Statement. The AGS also detailed key governance/control issues that the Council faced in the coming year.

The Statement set out the Council’s scope of responsibility, the purpose of the governance framework, the governance framework, and review of effectiveness. It also provided an update on the governance issues that were raised in the 2019-20 Annual Governance Statement.

It was clear that for some issues, the coronavirus pandemic had created challenges in delivering the planned actions in the timescales originally envisaged and re-shaped the focus of activity. However, the Council remained committed to enhancing its governance arrangements and where actions had been delayed, revised timescales had been agreed and were reflected in the action plan for 2021-22.

A review had been undertaken of the sixteen disclosures highlighted in the 2019-20 Statement. Two disclosures had been closed as they were no longer viewed as a significant governance / control issue facing the Council. Fourteen disclosures are to be carried forward into the 2021-22 Statement:

·  Sustainable improvement in Children’s Services

·  Ensuring delivery of the Council’s vision and corporate objectives, in line with the Medium-Term Financial Strategy

·  Raising educational standards

·  Implementation of the Information Management Strategy

·  Management of increasing demand in relation to homelessness and the associated costs of housing families in temporary accommodation

·  Development of a corporate data access standard

·  Governance over relationships with partners and outside bodies

·  Governance over the programme of capital projects

·  City of culture legacy

·  Strengthening arrangements linked to the programme of health and safety audits undertaken

·  Further development of the Council’s IT disaster recovery plans and processes

·  Review and update of the Social Value and Sustainability Policy

·  Implementation of the Local Government Ethical Standards Best Practice from the Committee on Standards in Public Life

·  Implementation of the Redmond Review into the oversight of local audit and the transparency of local authority financial reporting

In addition, six new disclosures were identified for inclusion within the

2021-22 Statement. These were identified as part of the review undertaken to support the production of the Statement.  The disclosures related to:

·  Further strengthening the Council’s arrangements and internal control environment around IT / Cyber Security.

·  Improving the system for identifying, evaluating, controlling and monitoring information risks (this has been incorporated into the wider issue of delivery of the Information Management Strategy.)

·  Demonstrating compliance with the Financial Management Code.

·  Ensuring robust governance over group activities / investments.

·  Embedding new methods of consultation and engagement.

·  Refresh of the One Coventry Plan. 

The Statement presented to the Audit and Procurement Committee as part of this report was the final version of the AGS for 2020-21.

The Committee requested that details of the Governance arrangements for the City of Culture legacy work, be circulated to Members of the Committee.

RESOLVED that the Audit and Procurement Committee:

1)  Notes the findings of the review of effectiveness of the Council’s governance arrangements and confirms its satisfaction with the level of assurance provided, that arrangements are fit for purpose. 

2)  Approves the Annual Governance Statement, attached at Appendix One to the report, which accompanied the 2019-20 Statement of Accounts.