The report of the Deputy Chief Executive and City Treasurer is attached.

The Committee considered a report of the Deputy Chief Executive and City Treasurer which presented the draft 2021/22 Annual Governance Statement (AGS), following completion of the annual review of the Council’s governance arrangements and systems of internal control. The processes followed to produce the AGS were outlined in the report.

In addition to the scope, purpose and context, the report also included information about:

• The document’s format and sections of the document, including an outline of improvements that had been made; namely a focus on producing a more easily digestible document with digital  accessibility improvements, in particular for those with visual impairments, to align with good practice.
• How Governance Arrangements are communicated;
• A discussion of next steps and the Annual Governance Statement’s Timeline

The Reform and Innovation Manager reported good progress in terms of strengthened and effective governance arrangements such that six of the challenges identified in the previous governance statement had been stepped down in respect of the Action Plan for 2022/23 resulting in an overall reduction in the number to be taken forward.

The main points of discussion in the meeting were:

• In view of its responsibilities for governance arrangements and systems of internal control, the frequency with which the Senior Management Team (SMT) discusses governance matters
• Noting the Head of Audit and Risk Management Annual Opinion 2021/22 was cited as ‘reasonable’, what actions could be taken to reach a position of ‘substantial’ assurance.
• The role of Trade Unions in consultations with staff where significant developments were underway.
• The role of the Audit Committee in amending the Council’s Climate Change budget and the associated policy development.

In respect of the Head of Audit and Risk Management’s annual opinion of ‘reasonable’, he explained that the opinion had been reached largely in reflection of the scale of change and challenge (the financial pressures the council faces, the scale of ambition in the city as well as  recent events that had impacted on Local Authority services).  Within that context, the position of  ‘reasonable’ was deemed fair in the circumstances, although the aspiration to attain a rating of ‘substantial’ remained a priority for the Authority.

With regard to the  frequency with which the SMT discusses governance arrangements, the Deputy Chief Executive and City Treasurer confirmed that this  was a fairly regular point of discussion, examples  of which included the discussion of the AGS, governance updates, the Corporate Risk Register as well as consideration of major cross-cutting themes, deemed to have a  strategic impact.

In respect of the relationship with Trades Unions, the Deputy Chief Executive and City Treasurer advised that the Authority had long established a collaborative approach, involving formal engagement and consultation procedures.  It was subsequently agreed to give greater prominence to the collaborative the Local Authority adopts with Trade Unions in the Statement.

With specific reference to the Council’s agreed Climate Change Action Plan and the agreed budget for carbon reduction targets therein, a member asked about the role of the Audit  Committee in amending the Climate Change budget and overall policy development with a view to meeting agreed objectives.  The  Deputy Chief Executive and City Treasurer explained that the AGS reference to the Plan solely focussed on the governance aspects of the Plan – the extracts outlined in the AGS referred to Local Authority’s emissions targets (noting that that two Plans were in place; one for the city as a whole and one solely for the Local Authority) and that it was within the terms of reference of the Council’s Environment and Climate Change Scrutiny Committee (E&CCSC) to scrutinise performance against the Plan and  put forward any recommendations concerning proposed amendments.  She added that the (Local Authority’s) Plan was considered on a quarterly basis by the E&CCSC and that the Plan for the city as a whole was scheduled to go through governance processes in late September / early October of this year.

Decision

1.    To note the draft Annual Governance Statement 2021/22.

2.    To agree that greater prominence to the collaborative approach the Local Authority adopts with Trade Unions shall be incorporated into the Statement.