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Audit Committee – 23 June 2008
ANNUAL GOVERNANCE STATEMENT
Report of the Acting Head of Financial Services
Ward(s) affected: All Wards
1. Purpose of Report –
1.1 To introduce and explain the requirements for reporting and approving an Annual
Governance Statement (AGS) (formerly known as the Statement on Internal Control (SIC))
covering the financial year 2007/08.
2. Recommendations –
2.1 That the Draft Annual Governance Statement for 2007/08 is noted and referred for
approval to Policy Committee.
3. Background –
3.1 Regulation 4 of the Accounts and Audit regulations (2003) (as amended) requires
the Council to conduct a review at least once a year of the effectiveness of its
system of internal control and to publish a statement on internal control each year
with the Council’s financial statements.
3.2 For 2007/08 this requirement has changed. Now the Statement of Internal Control
has been revised with the requirement to produce an Annual Governance Statement
(AGS), although its content is broadly similar to the former Statement of Internal
Annual Governance Statement
3.3 The AGS (formerly known as the SIC) explains how the council has complied with
the local code of governance, how we are complying with regulation 4(2) of the
Accounts and Audit Regulations 2003 as amended by the Accounts and Audit
(Amendment) (England) Regulations 2006 in relation to the publication of a
statement on internal control. In addition, as before, there is a section setting out
any future actions that may be needed to strengthen our corporate governance
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3.4 Whilst most of the required information is currently within the SIC, the format has
been changed so as to link with the main sub-principle headings within the Local
3.5 The section on future actions will pick up any areas within the Local Code that are
perhaps not yet fully in place, plus any outcomes of the 2007 Use of Resources
assessment currently in progress, as well as any other local issues.
4.1 Financial Implications – None
4.2 Legal Implications – There is a legal requirement as part of approval of the annual
statement of accounts.
4.3 Contribution to Corporate Priorities – Approval and adoption of both documents
is a key aspect of demonstrating that Craven District Council has a formal and
established response to the Corporate Governance requirements.
4.4 Risk Management – There are no particular implications but the council must
continue to embed risk management into its culture.
5. Consultations with Others
6. Access to Information : Background Documents –
7. Author of the Report – Tony Plant, Acting Head of Financial Services,
Appendix A – Annual Governance Statement
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