Agenda item - Annual Governance Statement 2015/16

Report of the Executive Director, Finance & Resources (copy attached).

1)           That the Audit & Standards Committee approve the draft Annual Governance Statement (attached as Appendix 1) subject to any comments or amendments as they consider appropriate.

13.1      The Committee considered a report of the Executive Director, Finance & Resources that presented the draft Annual Governance Statement for 2015/16 following completion of the annual review of the council’s governance arrangements, including its systems of internal control.

13.2      Diane Bushell noted her concern that contract management was not a part of the strategic risk process. Diane stated that page 140 noted that improving contract management was hindered by limited resources and asked whether there was commitment to improve this area. Diane also noted her concern regarding ‘uncertain’ risk ratings and whether that meant there were not effective controls in identifying risk.

13.3      The Executive Director, Finance & Resources stated that a review would be conducted as to whether contract management should be a strategic risk. The Executive Director, Finance & Resources explained that historically, contract management had been a duty of senior managers and did not have a dedicated post. A case would shortly be made for the appointment of dedicated contract managers with the expected savings used as the resource. The Executive Director, Finance & Resources added that the recently established Procurement Advisory Board would assist in monitoring and holding officers to account.

13.4      The Risk Management Lead explained that where strategic risks were given ‘uncertain’ ratings, this meant that they were a priority to the council and monitored as such but some of the actions were dictated by outside bodies such as central government or developments that the council had no control over hence the risk was uncertain.

13.5      RESOLVED- That the Audit & Standards Committee approve the draft Annual Governance Statement (attached as Appendix 1) subject to any comments or amendments as they consider appropriate.