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Weekly updates
"Chorley Council's Governance Overhaul: Key Decisions and Future Implications
In the past week, Chorley Council has held several meetings. Below are the details and key takeaways from each:
Governance Committee - Wednesday 22 May 2024
This meeting focused on the audit plan, financial risks, and governance improvements. Key discussions included:
Audit Plan and Financial Risks
- Management Override of Control: Gareth explained the potential risk of management manipulating financial statements. Specific targeted work will be done to identify any such cases.
- Pension Fund Liability: The valuation of the pension fund liability is a significant estimate in the financial statements. The actuary's assumptions will be reviewed to ensure they are sound and reasonable.
- Valuation of Land and Buildings: This involves judgments and estimates, and given the large values, it is a significant risk area. Assumptions and rationales will be tested.
- Materiality Thresholds: The materiality thresholds for the group audit and council audit were set just over a million pounds. The rationale for these thresholds was discussed.
Governance and Risk Management
- Corporate Governance Group: This group has been reestablished to focus on governance, risk management, and internal audit actions. Heads of service are now more accountable, and there is a greater emphasis on supporting services to improve governance.
- Service Assurance Statements: A new approach was taken this year, involving group sessions to discuss governance policies and procedures. This has led to better understanding and ownership among senior management.
- Risk Management Strategy: The council has improved its use of the GRACE system for risk management. The next phase involves better escalation processes for risks that services cannot manage alone.
Internal Audit and Effectiveness
- Internal Audit Reports: The committee reviewed several internal audit reports, including those on housing standards and event management. Actions have been taken to address issues, and progress is being monitored.
- Audit Effectiveness Review: The council's internal audit service was found to conform to 130 out of 135 components of the public sector internal audit standards. Actions are being taken to update the charter in line with new standards coming in January next year.
Financial Sustainability and Resilience
- SIPFA Resilience Index: The council's financial sustainability was reviewed using the SIPFA Resilience Index. Chorley Council's reserves, borrowing, and reliance on council tax were compared to similar councils. The council's level of reserves is lower than some comparators, but its ability to generate fees and charges is high.
Annual Governance Statement
- Draft Annual Governance Statement: The draft statement was presented, highlighting improvements in governance and risk management. Key actions for the next year were identified, including addressing issues related to sundry debtors and continuing to embed strong governance practices.
Public Questions and Standing Orders
- Suspension of Standing Orders: The committee discussed the continuation of the suspension of standing orders for public questions at council meetings. It was recommended to leave the suspension in place for now, with the option to review it if the situation changes.
Other Items
- Charity and Trust Fund Accounts: The committee approved the accounts for several small trust funds and discussed the potential to wind up some of these funds due to their inactivity.
- Work Program: The committee's work program was reviewed, and it was agreed to add a standing item for standards updates.
The next meeting is scheduled for Wednesday, 31st of July.
Planning Committee - Tuesday 21 May 2024
Unfortunately, we have not been able to find a video broadcast of this meeting.
Overview and Scrutiny Task Group - Suicide Bereavement and Prevention - Wednesday 22 May 2024
We have not been able to find a video broadcast of this meeting.
General Licensing Sub-Committee - Wednesday 22 May 2024
This meeting has been cancelled.
Implications and Themes
The Governance Committee's focus on financial risks and governance improvements is a recurring theme we've seen in council activities. The reestablishment of the Corporate Governance Group and the new approach to Service Assurance Statements indicate a strong commitment to improving governance structures and accountability. The use of the SIPFA Resilience Index to assess financial sustainability is a practical approach to understanding and managing financial health.
The continuation of the suspension of standing orders for public questions at council meetings could have implications for public engagement and transparency. This decision will need to be monitored to ensure it does not negatively impact the council's accountability to its constituents.
The review and potential winding up of inactive charity and trust fund accounts suggest a move towards more efficient financial management. This could free up resources for more active and impactful initiatives.
The next few months will be crucial as the council implements the identified key actions and updates its internal audit charter in line with new standards.
Recent meetings
Overview and Scrutiny Task Group - Suicide Bereavement and Prevention - Thursday, 26th September 2024 6.30 pm
We have not been able to find a video broadcast of this meeting.
Central Lancashire Strategic Planning Joint Advisory Committee - Thursday, 26th September 2024 6.30 pm
We have not been able to find a video broadcast of this meeting.
Governance Committee - Wednesday, 25th September 2024 2.30 pm
We have not been able to find a video broadcast of this meeting.
Licensing Act 2003 Sub-Committee - Monday, 23rd September 2024 3.30 pm
We have not been able to find a video broadcast of this meeting.
Overview and Scrutiny Performance Panel - Thursday, 24th October 2024 6.30 pm
We have not been able to find a video broadcast of this meeting.
Licensing Act 2003 Sub-Committee - Thursday, 19th September 2024 1.00 pm
We have not been able to find a video broadcast of this meeting.
General Licensing Sub-Committee - Wednesday, 18th September 2024 1.00 pm
We have not been able to find a video broadcast of this meeting.
Council - Tuesday, 17th September 2024 6.30 pm
We have not been able to find a video broadcast of this meeting.
Executive Cabinet - Thursday, 12th September 2024 6.30 pm
This meeting has been cancelled.
Planning Committee - Tuesday, 10th September 2024 6.30 pm
We have not been able to find a video broadcast of this meeting.
Upcoming meetings
No meetings found.