Agenda item

To consider and approve the Statement so that it can be signed by the Council Leader and the Chief Executive

DECISION:

To accept the report

To approve the Annual Governance Statement and recommend that it is signed by the Council Leader and Chief Executive.

Note:

Need to re-consider the Lawfulness likelihood score.

Need to consider reviewing the questions and adapting the document to be clear to Gwynedd residents - although compliant with CIPFA guidelines, a suggestion to consider combining with the assessment of governance arrangements which is included in Gwynedd Council's Self-Assessment to avoid duplication of work

The Statement was presented by the Head of the Finance Department. He explained that the statement, although not part of the accounts, was a statutory document which needed to be published with the accounts.  In accordance with the Accounts and Audit (Wales) Regulations and the CIPFA Code of Practice, all Local Authorities must ensure that a statement of internal management is in place. ⁠It was reported that the Chief Executive and the Council Leader were required to sign the statement, although the Governance and Audit Committee's approval was needed.

Some of the background to the statement was given. The statement which was based on the CIPFA/SOLACE Framework identified seven core principles for good governance and these had been divided further into sub-principles. It was highlighted that the Governance Arrangement Assessment Group had considered these principles and sub-principles and had created a Governance Risk Register, which was part of the Council's Corporate Risk Register.     Risks had been identified in 24 different areas of governance, identifying the controls that the Council had in place to mitigate these risks.

It was reported that risk management arrangements had given consideration to two factors when scoring the extent of the risk, namely the impact of the event should the risk be realised and the likelihood of the risk being realised.  Attention was drawn to the changes since the 2022/23 statement highlighting risk score adjustments in Finance and in Health, Safety and Well-being and it was reported that the Assessment Group had concluded there was one field with very high risks, 4 high risk fields, 10 medium risk fields and 9 low risk fields.

The members expressed their thanks for the report. Reference was made to each risk in turn giving Members an opportunity to enquire about that area.

During the ensuing discussion, the following observations were made by members:

Finance - that the 2022/23 risk score had been too low. Welcomed the adjustment and was satisfied with the assessment - it would be fair to retain the risk score at 20.

Finance - there was a need to amend the English report to reflect the 'very high risk' rather than 'medium risk'

Lawfulness - the likelihood of 1 was misleading

Health - suggested that the risk should be greater than 15? Had staff been fully trained?

General - that the headings were 'scholastic' suggesting that some were more important than others. Should the focus be on the matters that are of central importance rather than on the 'soft industrial'?

General - there was a need to use headings that referred to the conclusion. E.g. Finance matters clear and explanatory but with elements such as Housing and / or Growing Older, more background or a summary of areas within the field was needed. Need to consider reviewing questions and amending the document to be clear to Gwynedd residents. 

In response to a comment on the risks in Health, the Head of Finance noted that the score was a general one and had been scored by Health and Safety experts within the context of Council arrangements for safe operation.⁠ He reiterated there was a work programme in place with actions to reduce the likelihood score.

In response to a question on how often the risks were updated, the Head of Finance Department noted that the risk scores were reviewed continuously and that the high-risk fields were areas where long term plans had been identified to improve the situation. ⁠ Meanwhile, Heads of Department would report on the action and ensure the work was going in the right direction. He reiterated that the scoring process would be guided by a combination of findings or events and there was an element of objectivity as well as science behind the process.

In response to the general comments regarding the format of the statement, the Head of Finance Department noted there was an element of flexibility to the scoring and an attempt to follow CIPFA guidelines. It was accepted that the impact varied from field to field and it was difficult to generalise this. It was highlighted that it was intended to review the document, simplify it and combine it with Cyngor Gwynedd's self-assessment to secure one clear document for the people of Gwynedd and eliminate the element of duplicating work for officers.

RESOLVED:

To accept the report

To approve the Annual Governance Statement and recommend that it is signed by the Council Leader and Chief Executive.

Note:

Need to re-consider the Lawfulness likelihood score.

Need to consider reviewing the questions and adapting the document to be clear for residents - although compliant with CIPFA guidelines, a suggestion to consider combining with the assessment of governance arrangements included in Cyngor Gwynedd's Self-assessment to avoid duplicating work