To seek the Committee’s approval of the draft Annual Governance Statement for 2008/09.

The Chief Internal Auditor presented a report which requested approval of the draft Annual Governance Statement for 2008/09. He drew Members’ attention to the five principles outlined in the Council’s Code of Governance which had been linked to the six principles of good governance outlined in the SOLACE/CIPFA publication ‘Delivering Good Governance in Local Government, paragraph 7 of the report refers. He also highlighted the corporate objectives and priorities which were set out in a number of key plans and strategies in addition to the Corporate Plan, paragraph 9 refers. He referred to the Council’s responsibilities to comply with the Code of Corporate Governance and that these were set out in the five principles, paragraphs 3.3 to 3.28 of the report refers. The Council had to review annually the effectiveness of the governance framework and this review had been set out in paragraphs 4.5 to 4.66 of the report. The content of the report had been discussed with the Chief Executive, Directors, Leaders and the Chairman and Vice-Chairman of the Committee.

The Vice-Chairman asked when the results would be available in relation to the Herefordshire quality of life survey. The Chief Internal Auditor advised that the appropriate government department would be issuing that information but no timescale had been given by the government for the issue.

The Vice-Chairman referred to paragraph 3.28 of the report and stated that the PACT process was under review and that the paragraph did not include this issue. It was suggested that the paragraph be amended to include the words ’The process is nevertheless under review’.

The Vice-Chairman referred to paragraph 4.12 of the report and took the view that the Monitoring Officer’s report was incomplete. The Legal Practice Manager informed Members that he was unaware of any outstanding issues. The progression of the responsibilities of the Monitoring officer would be recommenced shortly with the appointment of the Interim Deputy Chief Executive Legal and Democratic. The Chief Internal Auditor stated that there were no apparent issues from the Monitoring Officer but that if there was concern about the content of the report referred to then the final sentence of paragraph 4.12 could be deleted.

The Vice-Chairman took the view that paragraph 4.56 of the report significantly understated the Audit Commission’s findings. The Chief Internal Auditor advised Members that the issues for improvement as set out in paragraphs 4.56 and 5.9 had been added into paragraph 4.55. The Director of Resources suggested that the Committee might wish to reinforce paragraph 4.56.

The Chief Internal Auditor would amend the wording of paragraph 4.58 with the addition of the words ‘presented to Children’s Services Scrutiny Committee on 30 March 2009’ after the word ‘report’.

With regard to the view of a Member that the Annual Governance Statement could contain additional documentation to add clarity to the points highlighted, the Director of Resources advised that to achieve the Statement in the form submitted to the Committee was an art and had been accomplished through skill and expertise.

A Member was of the view that to attach the necessary documentation as back up to the Statement would be extremely unwieldy.

A Member asked if paragraph 5.6 referred to data from its partners. Mr T Tobin, Audit Commission, informed the Committee that this paragraph referred to data from its partners and the Council.

RESOLVED:   That subject to the following amendments, the Annual Governance Statement for inclusion in the Statement of final accounts for 2008/09 be approved:

(i)                 the words ’The process is nevertheless under review’ be added after the word ‘(PACTS)’ in paragraph 3.28 of the report;

(ii)               the final sentence in paragraph 4.12 of the report be deleted;

(iii)             the words in paragraph 4.56 of the report be replaced with the words ‘The Audit Commission has identified a number of significant areas for improvement and these will be followed up by the Council and overseen by the Audit and Corporate Governance Committee’; and

(iv)             the words ‘presented to Children’s Services Scrutiny Committee on 30 March 2009’ be added after the word ‘report’ in paragraph 4.58 of the report.