Audit and Governance Committee

17 April 2023

Annual Governance Statement – 2022/23

For Review and Consultation

Portfolio Holder:	Cllr S Flower, Leader of the Council

Executive Director:	J Mair, Director of Legal & Democratic

Report Author:	Marc Eyre	David Trotter

Title:	Service Manager for Assurance	Risk & Resilience Officer

Tel:	01305 224358	01305 228692

Email:	marc.eyre@dorsetcouncil.gov.uk

Report Status: Public

Brief Summary: The Accounts and Audit (England) Regulations 2015 require a body such as the Council to “approve an annual governance statement, prepared in accordance with proper practices in relation to internal control.” The attached draft Annual Governance Statement (AGS) for 2022-23 sets out key features of the governance framework in place in the Authority and provides a review of its effectiveness. It has been prepared in line with the recommendations published by CIPFA and SOLACE, which were revised in 2016. It should be noted that the Local Code of Corporate Governance and schedule of High risks are included as Appendices to the Annual Governance Statement.

The “Review of Effectiveness” within the draft AGS is informed by the Council’s Local Code of Corporate Governance Compliance Assessment 2022-23 (Appendix A). The AGS also discusses those risks that are contained in the Councils Corporate Risk Register which are classified as potentially extreme and, as such, represent potential significant governance issues that the Council is currently facing and actively seeking to address. As the risk register is presented as part of this report, it negates the need for the separate quarterly risk management presentation to this committee.

Under the regulations, the accounts are not approved by the Council (or the Committee to which the responsibility is delegated) until after the external audit has been carried out. At this stage this draft allows members an early view and an ability to inform the content. Final adoption of the AGS will take place, alongside the accounts, by the Council and any areas of improvement will be identified. The final statement will be signed by the Council Leader and Chief Executive. As the AGS must reflect any significant issues that arise prior to its final approval, if necessary, subsequent amendments will be made to the draft document to reflect them and reported to this Committee.

Recommendation: The Committee is asked to consider and comment on the revised draft Annual Governance Statement (AGS) for 2022-23.

Reason for Recommendation: Approval and publication of an Annual Governance Statement by the Council is a statutory requirement and provides evidence that Dorset Council maintains high standards of governance and addresses significant shortcomings and risks.

Financial Implications

There are no budget requirements arising directly from this report. The overall financial position of the Council is one of the significant issues covered in the AGS. Addressing other issues identified in the compliance assessment or the AGS may have budgetary implications, which will be considered in the relevant action plans.

Environmental Implications

None

Well-being and Health Implications

None

Other Implications

None

Risk Assessment

The AGS references risks on the Council’s corporate risk register which have been assessed as being “High” or “Extreme”.

Equalities Impact Assessment

Considering equalities issues is a key aspect of good governance, but there are no equalities issues arising directly from this report.

Appendices

Annual Governance Statement 2022/23

Local Code of Corporate Governance

Extreme Potential Risks

Background Papers