Issue - meetings

To consider proposals for the reallocation of committee responsibilities and the creation of two new committees in place of the existing Governance and Constitution Committee.

Members considered a report proposing the creation of two new committees in place of the existing Governance and Constitution Committee.

In a climate of increasing need for strong governance arrangements, transparency and clear lines of responsibility, it was considered good practice to have a separate committee which incorporated the requirements of good corporate governance which had an independent assurance function separate from any other responsibilities. The Code of Practice for Internal Audit in local government (CIPFA 2003) required that “the authority have an independent Audit Committee”.

CIPFA recommend a statement of purpose for the Committee:

“the purpose of the Audit Committee is to provide independent assurance of the adequacy of the risk management framework and the associated control environment, independent scrutiny of the authority’s financial and non-financial performance to the extent that it affects the authority’s exposure to risk and weakens the control environment, and to oversee the financial reporting process.”

CIPFA guidance also stipulated that:

“To be effective, the audit committee needs to be independent from executive and scrutiny.”

It was therefore proposed that the “audit-related” functions and powers of the Governance and Constitution Committee, appropriately modified in line with current thinking, should be transferred to a new ‘Audit and Governance Committee’. The existing Governance and Constitution Committee would retain the remaining functions and undertake these under the new title: the ‘Constitution Committee’.  Subject to any changes agreed by its Chairman, the latter Committee would retain its existing programme of meetings and its membership would be the same as that of the existing Governance and Constitution Committee.

Appendices B and C to the report set out the powers and functions of the proposed Audit & Governance Committee, and the Constitution Committee, respectively.

The report proposed that the Audit and Governance Committee would have 9 members. According to the existing political proportionality of the Council, this would normally result in a 7:1:1:0 political balance on the Committee. However, this allocation would mean that the entitlement to seats across the Council would no longer be in proportion. This would have been rectified by changing the allocation of seats on the new committee to 7:2:0:0, and this allocation was therefore proposed in the report.

However, the Labour Group had chosen to forego a seat on the Lay Member Appointments Committee in order to secure representation on the new Committee. This would result in an allocation of seats on the new Committee of 7:2:1:0.

In considering the proposed terms of reference for the Audit and Governance Committee as set out in Appendix B of the report, Members agreed that paragraph 4 should be amended to read as follows:

“4.  ensuring the Council has in place appropriate policies and  mechanisms to safeguard the Council’s resources and test value for money;”

RESOLVED

Council be recommended to agree that

(1)   a new Audit and Governance Committee be established, with the powers and functions set out in Appendix B of the report (together with the expanded responsibility at paragraph 4 as recommended by the Governance and Constitution  ...  view the full minutes text for item 9