The Head of Finance presented the report of the Corporate Director Operational and Partnership Services which sought approval of the Annual Governance Statement for inclusion in the Council’s Statement of Accounts for 2015-16.  He stated that the Annual Governance Statement had been led by the Group Manager Corporate Performance, Partnerships and Transformation and her team.     

He explained that there are six core principles of good governance in the CIPFA/SOLACE framework contained within Delivering Good Governance in Local Government, which have been adapted for local government purposes.  The six principles are also aligned with the principles and values set out by the Welsh Government. 

The Head of Finance reported that good corporate governance requires the active participation of Members and officers across the Council and that these arrangements are reviewed annually and the findings used to update the Annual Governance Statement.  It also helps to ensure the continuous improvement of the Council’s corporate governance culture.

The Head of Finance informed the Committee that the inclusion of the Annual Governance Statement within the Statement of Accounts provides an overall assessment of the Council’s corporate governance arrangements and an appraisal of the controls in place to manage the Council’s key risks and identifies where improvements need to be made. 

The Head of Finance highlighted to the Committee the revised corporate priorities which had been set out on the Corporate Plan.  He informed the Committee that the Auditor General’s Annual Improvement Report had been positive who had concluded that the Council to make progress in delivering improvements; had recognised the need to support improvement of children’s services and that it’s forward planning arrangements and track record suggested it was well placed to secure improvement in 2015-16.  He stated that the Auditor General did not make any statutory recommendations, but had made 13 specific proposals for improvement. 

The Head of Finance informed the Committee that the Auditor General had undertaken a Corporate Assessment of the Council in 2015-16 in order to provide a position statement on the authority’s capacity and capability to deliver continuous improvement.  He stated that the outcome of the assessment was very positive and found no reason to make any formal recommendations, or conduct an investigation, or recommend that Ministers of Welsh Government intervene, but had made 8 proposals for improvement. 

The Head of Finance informed the Committee of changes to the management structure agreed by Council in April 2016 which resulted in the re-allocation of the functions of the Corporate Director Resources and had led to him being appointed the Section 151 Officer and a member of the Corporate Management Board. 

He reported on the wide range of issues which had been the subject of consultation and that the Shaping Bridgend’s Future consultation had included 15 community engagement events, an on-line survey and access to a budget simulator to capture the views of the public on budget savings in the Medium Term Financial Strategy.  He stated that the Council uses social media to promote its services and to engage with the public. 

The Head of Finance informed the Committee of the role of the Local Service Board (now the Public Service Board) and on the consultation it had undertaken during 2015-16.  He stated that the Wellbeing of Future Generations (Wales) Act 2015 established Public Service Boards in each local authority. 

The Head of Finance also informed the Committee of the training undertaken by the Committee in Treasury Management to assist in the scrutinising of the Annual Treasury Management Strategy.  He stated that Internal Audit provides independent and objective assurance and undertakes a continuous audit of Council services.  The Head of Audit had undertaken a self-assessment to demonstrate the extent to which the Internal Audit Shared Service complied with the Public Service Internal Audit Standards. 

The Head of Finance informed the Committee that a Financial Resilience Assessment was undertaken which focused on the delivery of the 2014-15 savings and 2015-16 financial planning period.  The assessment concluded that whilst the Council faced significant financial challenges, its current arrangements for achieving financial resilience are sound.  He stated that the purpose of the Corporate Assessment undertaken was to provide a position statement of an improvement authority’s capacity and capability to deliver continuous improvement.  It also considered the authority’s track record of performance and outcomes as well as examining the key arrangements necessary to underpin improvements in services and functions.  He stated that the Auditor General had concluded that the Council is developing appropriate plans for the future and is well placed to secure improvement. 

The Head of Finance informed the Committee that the Public Services Ombudsman for Wales had noted a decrease in the number of complaints received made against the authority.  He also stated that the care and Social Services Inspectorate Wales in its Annual Review had concluded that the Council remained realistic about the challenges posed by the need to deliver improving services within the context of reducing financial resources. 

The Head of Finance concluded that the challenge facing the Council will be to consider alternative delivery models for services which will be essential to mitigate the impact of cuts.  He stated the Council continues to face reduced resources and increased demands on services and it was necessary that the control environment, including governance and risk management remains robust, proportionate and efficient.  He also stated there were no significant cross cutting control issues that would impact on the Council’s Annual Governance Statement.

A member of the Committee requested that consideration be given to the effectiveness of the Scrutiny function and the Call-in process and devoting more resources to the function.                

RESOLVED:           That the Committee reviewed the Annual Governance Statement and approved its inclusion in the statement of Accounts 2015-16.