Audit Committee
7 June 2011
Agenda Item No_______13______
Local Code of Corporate Governance and Annual Governance Statement 2010/11
Summary:
The Corporate Governance framework is made up of the systems and
processes, culture and values by which an organisation is directed
and controlled. For local authorities this includes how a council
relates to the community it serves.
The Local Code of Corporate Governance is a public statement of the
ways in which the Council will achieve good corporate governance.
It is based around six principles which were identified in the
joint publication by the Chartered Institute of Public Finance and
Accountancy (CIPFA) and the Society of Local Authority Chief
Executives (SOLACE). The Annual Governance Statement is
prepared following a review of all the evidences available to the
Council in seeking compliance with its Local Code.
Conclusions:
The arrangements set out in the Local Code of Corporate Governance
and the Annual Governance Statement will allow the Council to move
ahead with its corporate planning processes confident that it can
address the issues of governance and risk.
Recommendations:
Members are asked to review the evidences and approve the Annual
Governance Statement along with the updated Local Code of
Corporate Governance and associated action plan.
Members are asked to note that a more detailed review of the Local
Code of Corporate Governance will be required once the Corporate
Plan for 2011-15 has been prepared.
Cabinet member(s):
Ward(s) affected:
All
Contact Officer, telephone number,
and e-mail:
All
Sheila Oxtoby, 01263 516077, sheila.oxtoby@northnorfolk.gov.uk
Audit Committee
7 June 2011
1.
Introduction
1.1.
Attached to this paper are two documents for consideration by the Audit Committee.
These are;
• The Annual Governance Statement
• The Local Code of Corporate Governance
2.
Annual Governance Statement
2.1.
Attached at Appendix H is the draft Annual Governance Statement (AGS) for 2010-11.
This statement provides assurances as to the in-year operation of the risk and
governance arrangements adopted by the Council. It is prepared after reviewing all of
the evidences available to the Audit Committee, Performance and Risk management
Board, the Council’s Corporate Management Team, Head of Internal Audit, external
audit and the statutory officers of the Council.
2.2.
The AGS is included within the Financial Statements and is signed by the Leader of the
Council and the Chief Executive. The Audit Committee are asked to consider the draft
report as attached and to make recommendations to Council. The Council’s Head of
Internal Audit, the Monitoring Officer and the Chief Financial Officer will all be available
at the meeting to answer questions in relation to the draft statement.
3.
The Local Code of Corporate Governance
3.1.
It is best practice for each authority to adopt a Local Code of Corporate Governance
which demonstrates how the Council will achieve good governance. The Code follows
the six principles of good governance as identified by CIPFA/SOLACE.
3.2.
There are some key requirements that need to be met to demonstrate compliance with
the six principles and these are listed along with ‘evidences’ and source documents.
These evidences that must be reviewed regularly to ensure that they are up to date and
remain sufficiently current. Any gaps in compliance are identified and form an action
plan which is monitored throughout the year.
3.3.
The Local Code of Corporate Governance has been updated to reflect changes in
2010/11, however a more substantive review and update will be required following the
adoption by the Council of a new corporate plan and changes resulting from any new
approaches.
4.
Review of Effectiveness
4.1.
The Council is committed to a sound system of Governance that reflects:
4.1.1. openness, accountability and integrity
4.1.2. compliance with laws, policies and regulations
4.1.3. identified and monitors all strategic and operational risks
4.2.
The key document for the Council is the Corporate Plan. The risks to its
achievement are outlined in the comprehensive risk registers maintained by
the Authority.
4.3.
The review of the Governance arrangements is undertaken through a number
of mechanisms. The Monitoring Officers report, the report from the Head of
Internal Audit and the Senior Management Team members’ assurance certificates
as well as the various inspection regimes from the Audit Commission and the
Audit Committee
7 June 2011
External Auditors all provide elements of the overall review.
5.
Conclusion
5.1.
The arrangements set out in the Local Code of Corporate Governance will allow the
Council to move forward with its corporate planning processes confident that it can
address the issues of governance and risk.
6.
Recommendations
6.1.
Members are asked to review the evidences and approve the Annual Governance
Statement along with the updated Local Code of Corporate Governance and associated
action plan.
6.2.
Members are asked to note that a more detailed review of the Local Code of Corporate
Governance will be required once the Corporate Plan for 2011-15 has been prepared.