Issue - meetings

The Accounts and Audit Regulations 2015* require councils to produce an Annual Governance Statement (AGS) to accompany its Statement of Accounts.

The AGS concludes that BCP Council “has effective and fit-for-purpose governance arrangements in place in accordance with the governance framework”.

After considering all the sources of assurance (for governance arrangements), BCP Council Corporate Management Board identified that the following significant governance issues existed:

·       BCP Council Assurance Review

·       Dedicated Schools Grant

·       BCP FuturePlaces Ltd

·       Delay in the completion of the 2021/22 External Audit

·       Mandatory Training

An action plan to address these significant governance issues has been produced and is being implemented. An update against the action plan will be brought to Audit and Governance Committee in January 2024.

*and as amended by the Accounts and Audit (Amendment) Regulations 2022

The Local Code of Governance has been amended to keep pace with the Council’s changing governance arrangements and framework as required. The latest amendments are minor in nature.

The Head of Audit and Management Assurance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'I' to these Minutes in the Minute Book.

The Committee was reminded of the provisions of the Accounts and Audit Regulations 2015 (as amended by the Accounts and Audit (Amendment) Regulations 2022) requiring Councils to produce an Annual Governance Statement (AGS) to accompany its Statement of Accounts. The range of various sources from which the AGS was complied were set out and explained. The draft AGS had been published as part of the Statement of Accounts statutory public inspection period from 01June to 14 July 2023, during which time the public had the right to inspect, make objection, or ask the external auditor questions about the accounts. Although none were reported to have been received, an individual had made it known to the Council that they may still wish to make formal comment. The AGS would also be subject to formal audit by the external auditor.

The AGS concluded that BCP Council “has effective and fit-for-purpose governance arrangements in place in accordance with the governance framework” and that overall governance arrangements were considered sound.

It was reported that, after considering all the sources of assurance (for governance arrangements), BCP Council Corporate Management Board had identified that the following significant governance issues existed:

·       BCP Council Assurance Review

·       Dedicated Schools Grant

·       BCP FuturePlaces Ltd

·       Delay in the completion of the 2021/22 External Audit

·       Mandatory Training

An action plan to address these significant governance issues had been produced and was being implemented. An update against the action plan would be brought to Audit and Governance Committee in January 2024.

The Committee noted that the number of, largely national and external, issues which had caused delay to completion of external audits were now substantially resolved and that the external auditors were now making good progress with current audits. The Committee were also informed that a Central Government assurance review of BCP Council had been recently carried out and the results, expected imminently, were likely to give rise to a need for further amendment of the AGS.

The Local Code of Governance had been amended to reflect the evolution of the Council’s governance arrangements and to keep pace with the Council’s changing governance arrangements and framework as required. The latest amendments were minor in nature although it was noted that the reconvened Constitution Review Working Group was likely to make further contribution in this area.

RESOLVED that

a)    The ‘pre-audited’ Annual Governance Statement 2022/23 is approved;

b)    The annual update of Local Code of Governance is approved. If in-year material amendments are required, the Head of Audit and Management Assurance is delegated to make these in consultation with the Chair of the Audit and Governance Committee and the Leader of Council.

Voting: Unanimous