To consider Report CFO/026/20 of the Treasurer, concerning the Authority’s Annual Governance Statement. This statement fulfils the Authority’s statutory requirement to prepare a statement of internal control in accordance with proper practices, and to present an annual review of the effectiveness of the current system.

Members consider Report CFO/026/20 of the Treasurer, concerning the Authority’s Annual Governance Statement.

Members were informed that this statement fulfils the Authority’s statutory requirement to prepare a statement of internal control in accordance with proper practice; and to present an annual review of the effectiveness of the current system.

Members were informed that the Annual Governance Statement is attached to the report as Appendix A, and the overall conclusion is that the system of internal control is adequate, however noting that any control system can provide only reasonable assurance and not absolute assurance.

It was highlighted to Members that within the Annual Governance Statement, Section 3 outlines the Governance Framework, which are the key elements of the systems and processes that underpin the Authority’s governance arrangements.

They were advised that Section 4 reviews the Effectiveness of the governance arrangements including the system of internal control.

With regards to the “Significant Governance Issues” section on pages 74 – 75, Members were advised that this identifies the 2019/20 and recent historic challenges faced by the Authority; and considers the 2020/2021 and future years’ potential challenges.

Members made reference to the statement within the report, around the expectation that the Government will fully meet the costs of Covid-19 for the Authority, which they stated seems contrary to the view of other authorities. Members therefore sought assurance from officers that this was still expected to be the case.

Members were advised that the position was somewhat different, in terms of the cost of a fire service; and the cost of a local authority, in that local authorities provide a great deal of demand-led activities which have driven up additional costs, as well as the significant loss of income.

Members were advised that for the fire service, there have been two main issues -one being a loss of income from our commercial department; and the other being in terms of the procurement of additional PPE for our staff and some additional staffing costs. Therefore, although there is a significant difference in financial costs to a fire service compared to the costs to a local authority, the Authority has still incurred significant costs.

Members were informed that there is a risk that the £1.4m received may not be sufficient to cover all costs, should the required changes that the Authority has to put in place to its buildings and such; and the loss of income, continue to the end of the financial year. However, the Government has indicated that they are considering, for local authorities and fire authorities, the opportunity to apply for additional funding. As such, officers are confident that should things continue, further funding would be available.

Members were also advised that the Home Office have held back an additional £6m for fire services to bid for, to cover additional activities that they have taken on, which is an extra source of funding available. In addition, they were advised that some funding is also available through the NFCC, to assist in terms of National Resilience.

Members Resolved that:

The 2019/20 Annual Governance Statement, be approved.