109.
Hayley McGrath, Corporate Governance Manager, introduced the report which requests that the Committee consider and note the review the Councils compliance with seven principles of good governance, including the review of effectiveness of the internal control arrangements. The report also requests the Committee approve the Annual Governance Statement for 2017/18.
Hayley McGrath informed the Committee that the Council has a duty to review the governance arrangements once a year, to ensure that they are appropriate and meet the seven principles of good governance, which is based on the CIPFA and SOLACE guidance document.
The review of the governance framework consists of looking at the arrangements for audit in the Council as a well as conducting interviews with senior management on a one to one basis reviewing the previous year alongside the seven principles of good governance. This also involves looking at policies and produces and committee structure of the organisation. A significant element to the report is the Head of Internal Audit Report produced by Mazars, which provided a substantial assurance rating that the financial and non-financial systems are working appropriately. Hayley McGrath also highlighted that the governance review looks at Colchester Borough Homes and the Colchester Community Stadium Company to ensure that they are working appropriately. Hayley McGrath confirmed that the statement uses prescribed wording to provide the relevant assurances.
As part of the statement it is necessary to identify those internal control areas which require action. This relates to areas where control arrangements could be improved rather than where a specific issue has occurred. Hayley McGrath highlighted that a more detailed action plan of these items is included within Appendix 2.
The role of the Committee is to approve the Annual Governance Statement, which is included as part of the Statement of Accounts and verified by external auditors.
Committee members thanked the officers for the work undertaken. Further information was requested with regards to the relationship between the Council and the Partnerships. Hayley McGrath confirmed that for the North Essex Parking Partnership and the Colchester and Ipswich Museum Service, Annual Governance Statements are reported directly to their Joint Committees. The partnerships do not have to complete a statement due to the size, but it is good practice to complete governance reviews.
A further query was raised with regard to how the new Council owned companies would be governed. In response Andrew Weavers, Monitoring Officer, confirmed that the companies have a group governance arrangement in place. This maps out the arrangement between the Council and each subsidiary company. The Governance and Audit Committee, as the shareholder Committee will receive reports from the board of Colchester Commercial Holdings with regard to the financial performance of the company and how it is performing against its targets. Hayley McGrath also confirmed that the companies would be listed within next year’s Annual Governance Statement in a similar way to how Colchester Borough Homes is currently reported.
RESOLVED that;
a)
The review of the Council’s compliance with the seven principles of good governance including the review of effectiveness of the internal control arrangements be noted.
b)
That the Annual Governance Statement for 2017/18 be noted.