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

The Committee considered the report of the Deputy Chief Executive and City Treasurer presenting the draft 2020/21 Annual Governance Statement (AGS). The AGS has been produced following completion of the annual review of the Council’s

governance arrangements and systems of internal control. The Directorate Lead - Corporate Planning and Governance introduced the report and informed the Committee that work had been undertaken to streamline the report following an exercise with peer authorities to look at examples of good practice and to adapt those to improve the layout and content of the statement. The statement has been made more concise and now focuses on important strategic information.

The Committee was reminded that the AGS is reported to both Audit Committee and Standards Committee. The Annual Report of Standards Committee informs the AGS as a source of assurance and it was proposed that for 2021/22 and subsequent years that instead of the AGS itself being brought to Standards Committee and Audit Committee, that would instead be submitted to Audit Committee only. This amendment would improve the efficiency of the process due to the timing of the usual Committee schedule which holds the meeting of the Standards Committee in March before Audit Committee. This will allow the draft version of the AGS to be in a more complete year-end position when reported to Audit Committee, therefore reducing officer resources required to update and produce the document. A recommendation would be required for the Council to consider and decide whether to amend article 9 of the Council Constitution accordingly. In addition, the Committee was requested to agree that the Code of Corporate Governance (CCG) be removed from the remit of the Standards Committee and be considered by the Audit Committee.

The Chair invited the Committee to ask questions and comment on the report.

Members of the Committee questioned the reasons for the removal of the AGS from consideration by Standards Committee in particular the reference to officer time. Members also considered the involvement of the Committee to be relevant and important. A change of date of the Standards Committee was suggested to address the matter.

The Committee was informed that a change of date to bring the report later would address the matter.

The Chair advised the Committee that the change of timings in the accounting regulations had impacted on the production of the AGS. Also, the Standards Committee had only limited terms of reference in relation to the AGS and CCG. The Committees ability to inform the AGS is through the production of the Annual Standards Report as it provides the Standards Committee overview of how the Council is operating and provides the Council with that assurance. It would also be difficult to advise on what the Committee could add to the CCG through the limited standards related focus it has, unless changes were made by CIPFA to the key principles relating to matters of conduct.

A member questioned what compromise could be made if a change was made to the CIPFA principles to allow the Committee to assess if input was required into the any new principles.

The Committee was advised that any changes to the CIPFA principles would be reported to the Committee for consideration.

Following discussion, members were in agreement that the Committee should retain its current responsibility for parts of the AGS and CCG relating to Standards matters. In addressing the issue of the scheduling of meetings, it was suggested that the Chair agree to call an additional meeting of the Standards Committee to deal with those matters as and when they arise.

The Chair noted that the Committee was aware of the need for flexibility in considering the Annual Governance Statement and preferred to retain the current responsibilities as part of its terms of reference, as detailed in the Council Constitution. To ensure the schedule for the production of the AGS is met, the Committee would meet to consider the AGS at an additional ordinary meeting at a time to complement its submission to the Audit Committee.

Decisions

1.  The Committee noted the contents and the comments on the draft version of the Council’s 2020/21 Annual Governance Statement (AGS).

2.  The Committee agreed to retain its responsibility to consider the Annual Governance Statement and Code of Corporate Governance in relation to member standards matters.

3.   The Committee agreed that an additional ordinary meeting of the Standards Committee be arranged, in consultation with the Chair, to consider the AGS, to complement the submission of the AGS to the Audit Committee if needed.