Issue - meetings

To consider the Local Code of Corporate Governance and Draft Annual Governance Statement 2020/21.

The Internal Audit Manager gave a summary of the report, which detailed the Local Code of Corporate Governance 2021 and the Draft Annual Governance Statement (AGS) 2020/21 for publication with the Statement of Accounts. She said that the Local Code sat within the Constitution and that the AGS reflected the current in-year arrangements. She specifically referred to the Draft AGS Paragraph 4.5 Internal Audit Opinion and that she had taken CIPFA guidance in reflecting Covid 19 implications throughout the statement. She said that the Internal Audit Annual Report would be brought to the next meeting. She also highlighted that Paragraph 4.7 that identified areas for improvement or monitoring during 2021/22 was not an exhaustive list.

In response to a question from Councillor Emanuel in respect of how objectives for improvement would be measured, the Internal Audit Manager confirmed that monitoring arrangements would be in place, and these would be reflected in the following year’s statement.

Councillor Light acknowledged the work that had gone into putting the report together and how well officers had stepped up during the pandemic. She said that it was good to have a Local Code of Corporate Governance but was concerned that procedures in place might not be effective enough. She said that the AGS should not have been presented in view of the on-going investigation. She referred to the fact that the Investment Board should receive quarterly reports but that this had not happened since December 2020. She also said that the Draft AGS Principle C that referred to the Stansted Airport had not adequately reflected how the Appeal had actually been fought. She requested that two separate votes be taken in respect of adoption of each document as she supported approval of the Local Code but not the AGS. 

The Director – Finance and Corporate Services said that the Draft AGS was a position statement and confirmed that the 2019/20 AGS remained outstanding. He said that the statement in respect of Stansted Airport recognised that there was on-going discussions and decisions to be taken. He said that Scrutiny Committee was also considering whether to look at this. He also said that the Investment Board would be meeting in the near future to consider appropriate reports.

Councillor Khan said that he supported the views expressed by Councillor Light. He said that at a previous meeting the External Auditor had confirmed the significance of the AGS and that the issue was around confidence, in light of the on-going police investigation. He said that if the previous year’s accounts had not yet been signed off then why would this year’s accounts be signed off. He said that the draft AGS should not be taken at this time.

The Director – Finance and Corporate Services said that Draft AGS Paragraph 4.6 set out the position in that BDO were unable to sign off the 2019/20 Accounts but said that there was a requirement to submit the 2020/21 draft accounts by the end of June 2021, including the AGS.  ...  view the full minutes text for item 5