Agenda item

Report of the Chief Operating Officer (Section 151 Officer)

The Audit and Procurement Committee considered a report of the Chief Operating Officer (Section 151 Officer) that provided details of the results of the annual review of effectiveness of the Council’s governance arrangements and sought approval for the Annual Governance Statement, which formed part of the Statement of Accounts for 2022-23.

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 Local 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 and the Accounts and Audit (Amendment) Regulations 2022, which required all relevant bodies to conduct a review of the effectiveness of its system of governance and prepare an Annual Governance Statement. The AGS also detailed key governance / control issues that the Council faced in the coming year.

The AGS was normally presented to Audit Committee in June / July each year to meet the deadline for publication specified in the Accounts and Audit Regulations. Whilst the accounts for 2022-23 had not yet been finalised, the audit of the 2019-20 accounts had now been completed, and work was currently ongoing to finalise the accounts for subsequent years. As such it was felt appropriate to present the AGS for 2022-23 at this time. This would also facilitate the AGS annual review for 2023-24.

Whilst processes were in place to monitor key elements of the governance framework through-out the year, for example through the work of Internal Audit, the Corporate Governance Steering Board and the Council’s Audit and Procurement Committee, an annual review was also undertaken as part of the production of the AGS for the year. The purpose of the review was to provide assurance that the arrangements set out in the Local Code of Corporate Governance continued to be fit for purpose and identified key governance issues for the forthcoming year. The annual review considered information from a number of sources with the outcomes reviewed and agreed by the Corporate Governance Steering Board and Leadership Team.

Based on the outcomes of the review, the overall opinion that had been reached was that reasonable assurance could be provided that the Council’s governance arrangements continued to be regarded as fit for purpose in accordance with the governance framework. The basis of this opinion, including the key findings from the review, were set out in the report.

The AGS also detailed the key governance issues that the Council faced in the coming year. Section 5.3 of Statement, attached at Appendix One, provided details of these areas. Whilst the process of identifying the issueswas co-ordinated by the Chief Internal Auditor, it incorporated the views and opinions of senior officers, the Council’s Governance Steering Board and Leadership Team.

An update on the progress against planned actions in relation to the issues raised in the 2021-22 AGS was provided in section 5.1 of the Statement, attached at Appendix One.  A review of the 19 issues highlighted in the AGS for 2021-22 has found that these fell into two categories, namely Issues which had now been addressed and issues carried forward to the 2023-24 Action Plan.

Seven new issues had been identified for the Annual Governance Statement, these were also detailed in section 5.3 of the Statement, attached at Appendix One, along with the actions the Council planned to take (or had taken) in 2023-24 in relation to these issues. These issues were identified as part of the review undertaken to support the production of the AGS as detailed in section 2.1 of the report.

RESOLVED that the Audit and Procurement Committee:

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

2)  In considering the Annual Governance Statement, attached as Appendix One to the report, approves the Statement which will accompany the 2022-23 Statement of Accounts.