Agenda item

Draft Annual Governance Statement

Lisa Kitto, Interim Deputy Chief Finance Officer to report at the meeting.

Minutes:

The Council as part of its Statement of Annual Accounts produces an Annual Governance Statement. 

 

The draft Annual Governance Statement has been completed and sets out key information in the Council’s assessment of its internal governance arrangements.

 

The Annual Governance Statement also sets out key areas of governance concerns and actions that will be undertaken to address these.

 

The draft Annual Governance Statement is presented for an initial review by the Audit Committee and a final document will be presented to Committee at its next meeting for recommendation for approval at Full Council later in the year.

 

It was explained that some areas of weakness have been identified and these are set out in the document. A review of governance arrangements is currently underway and will be reported to Audit Committee throughout the year. 

 

Further information how the Council plans to address some of the governance concerns is also set out in an action plan appended to the Annual Governance Statement.

 

Members of the Committee were invited to ask questions;

 

·         Councillor Hayes referred to the Homes England Grant Claims and asked how much money was involved and for what purpose.

 

The Homes England Grant Claims related to monies for housing development and the risks highlighted referred to reputational risk going forward. Quality checks had been put in place in relation to this.  The exact sums involved were not known and officers made a commitment to provide this at the next meeting.

 

·         Councillor Vernon referred to the processes in relation to procurement requiring updating and training provided to managers. Councillor Vernon asked whether the Council had lost money in relation to procurement opportunities.

 

It was explained that it was more a case of losing the opportunity to save money. A central consolidated contract register would be implemented to help achieve savings.

 

·         Councillor Vernon referred to the statement relating to the opportunity for fraudulent business and other grant claims during the COVID 19 crisis having been likely and asked what work would be carried out in relation to this.

 

It was reported that work was being carried out to identify fraudulent activity and any cases that were identified would be dealt with.  It was reported that the Council is working within the national requirements and approach that have been established to identify fraudulent activity.  All findings would be reported back to the Audit Committee.

 

·         Councillor Whitby referred to the deficit on DSG reserves as set out on page 30. Councillor Whitby asked whether the recovery plan that had been agreed with the DFE was being implemented.

 

It was reported that the plan was being implemented and other work in this area was also being carried out. A report was due to be presented to Cabinet at a future meeting as well as regular updates.

 

·         Councillor Gold asked what the implications were financially in relation to COVID 19.

 

Mike Woodhead explained that the impact of COVID 19 would not be reflected within this report as this showed a backward look however he did report that the MTFS would include a range of scenarios.

 

Lisa Kitto explained that the impact of Covid had been considered as part of the work to produce the draft statutory accounts.  This included revaluations of the value of the Council’s Investments including Manchester Airport Group and the Greater Manchester Pension Fund.  Both had been re-valued by specialist valuers on behalf of the Greater Manchester Authorities, to take account of the impact of Covid, and reflected in the accounts. In addition to this, the Council had considered the impact on its assets including the valuation of property and had also considered the ‘Going Concern’ requirements.

 

·         Councillor Gold asked about the funding received at the start of the pandemic and asked whether this was included within the report.

 

It was explained that the Council received £5m before the end of the financial year which has been used to cover losses. The majority of the financial implications of COVID 19 will be seen from the 2020/2021 financial year and onwards.

 

Delegated decisions:

 

1.   That the Audit Committee notes the draft AGS and provide initial comments;

 

2.   That the Audit Committee notes that the draft AGS will be available on the Council’s website from the end of July and available for public inspection, and;

 

3.      That the Audit Committee notes that a final AGS will be presented to Committee in October for approval and for recommendation to Full Council.

Supporting documents: