To outline to the committee the governance arrangements for Hoople to enable the committee to provide independent assurance on the adequacy of the risk management framework, including the internal control of the financial reporting and annual governance processes.

The solicitor to the council presented the report and explained that the Acting Director, Economy and Place and board member of Hoople and the Chief Operating Officer of Hoople were present to answer any queries members may have.  

Following a question from a member of the committee, it was explained that the board consisted of a council officer, a Member of Herefordshire Council and a representative of Wye Valley NHS Trust.   Due to the small size of the board, a decision had been taken that it would be difficult to have a sub committees.   As a result of this, the board schedules its meetings to ensure that all issues are discussed which included risk and audit. 

It was agreed that as Hoople were now included as part of the group accounts of council that the committee would receive an annual report on Hoople as part of the annual governance statement.

With regard to the Teckal status of Hoople, it was explained that this was important to the company as it enables trading with public sector organisations.  If Hoople lost its Teckal status then the council would need to procure its back office functions.     It was noted that 84% of Hoople’s income was derived from the two majority shareholders (Herefordshire Council and Wye Valley NHS Trust).  

RESOLVED

That the report be noted.