Agenda item

(Monitoring Officer) To consider the attached report.

The select committee received a report regarding the Proposed Terms of Reference of the Audit and Standards Committee from the Assistant Director Performance Management.

At the Council meeting in February 2016, members considered a difference of view between the Audit and Governance Committee and the Standards Committee about a proposed merger of the two committees from May 2016. The Council decided that this Working Group should consider the concerns expressed by the Standards Committee and report back to the April Council meeting, alongside submitting the new Constitution.

The Standards Committee promoted and maintained high standards of conduct by Members. However, matters around Member conduct at committee level were relatively light and three of the six scheduled meetings had been cancelled in the last 18 months.

The Audit and Governance Committee was responsible for providing independent assurance of the adequacy of the Council’s risk management framework and provided independent scrutiny of the authority’s financial and non-financial performance. They approved the financial statements and Annual Governance Statement as well. A new committee would require a standing item concerning Standards issues. It was advised that a number of other authorities had combined their Audit and Standard Committees successfully, the main reasons being low numbers of complaints and similarities between communities dealing with governance issues.

The proposed Audit and Standards Committee would have the objective of making a positive contribution to the Council’s governance and control environment. The proposed Terms of Reference articulated the Committee’s wider remit which would include advising and reviewing the Council’s arrangements for internal audit, internal control, risk management, financial management, standards and corporate governance.

The proposals had been considered by the Audit and Governance Committee at its meeting on 30 November 2015. The committee welcomed the proposals and were in general agreement that these two committees should merge as this would be more efficient.

The proposals were also considered by the Standards Committee on 25 January 2016, who accepted that the implementation of the new arrangements for dealing with member misconduct under the Localism Act 2011 had dramatically reduced its workload. However, after discussion, the committee was not minded to support the proposals and expressed a number of concerns regarding the proposed merger:

(a)  There were currently 9 members available to consider Standards issues, which would reduce to 3 under the proposals and it was felt that this was not enough;

(b)  There was a perceived lack of involvement by parish councils under the proposals as there were three representatives from the local councils affiliated to the Standards Committee; and

(c)  There was a perceived risk that a smaller committee would be less objective when considering standards issues.

Although Standards Committee members acknowledged that there was a synergy between the two committees, they felt that they considered two separate types of issues. It was also stated that a number of other committees also have meetings cancelled due to a lack of business or met on an ad hoc basis. This was not a sufficient reason to consider disbanding the committee and amalgamating it with another.

After debate, the Working Group voted to retain the separation of Audit and Standards. The vote was close with some members supporting the proposed changes, however, feelings that Standards issues could be diluted in a new, amalgamated committee were slightly stronger. The recommendations allowed for a review in two years and that the membership of the Audit and Governance Committee increase to five councillors.

RECOMMENDED:

(1)  That the Council be recommended to retain the Audit and Governance Committee and Standard Committee as separate meetings;

(2)  That the Council be asked to consider a review of the Standards Committee in 2 year’s time; and

(3)  That the Audit and Governance Committee be increased to five councillors.