Annual Governance Statement

• To fulfil the statutory requirement for each local authority to conduct a review of the effectiveness of the system of internal control and prepare an AGS each financial year.
• To ensure the AGS is consistent with our Local Code of Corporate Governance and the 7 Principles of Good Governance.
• To assess our governance arrangements, to identify areas of strength and weaknesses in internal controls.
• To ensure our governance is fit for purpose and to demonstrate that there is a sound system of governance.
• To outline our progress in 2024-25 and help us take further actions to improve governance for delivery in 2025-26

Good governance in local authorities is key to ensuring the council does the right things in the right way for the right people.

Ethics

It creates a culture based on openness, inclusivity and honesty.

Accountability

It puts the arrangements in place to ensure that the intended outcomes for stakeholders are defined and achieved.

Best Value

In ensures ongoing  continuous improvement to further strengthen the way the council operated.

Transparency

It demonstrates effective leadership, including accountability and transparency in actions and decisions.

Assurance

It ensures robust systems and processes are established and followed.

1. Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law.
2. Ensuring openness and comprehensive stakeholder engagement.
3. Defining outcomes in terms of sustainable economic, social, and environmental benefits.
4. Determining the interventions necessary to optimise the achievement of the intended outcomes.
5. Developing the entity’s capacity, including the capacity of its leadership and the individuals within it.
6. Managing risks and performance through robust internal control and strong public financial management.
7. Implementing good practices in transparency, reporting and audit to deliver effective accountability.

Local Code

Underpinning the Council’s Governance and Assurance Framework is its Local Code of Corporate Governance (“Local Code”). The Local Code is consistent with the 7 Principles of Corporate Governance. This AGS should be read in conjunction with the Local Code.

The Council has conducted a Good Governance Self-assessment against the 7 Principles of Corporate Governance.

Review of Effectiveness

The Governance and Assurance Framework has been in place for the year ended 31 March 2025 and up to the date of approval of the Statement of Accounts.

The Audit Manager’s overall opinion on the framework of governance, risk management and control in operation during 2024/25 is that it was adequate and effective.

• Local Code of Corporate Governance (based on 7 Principles of Good Governance).
• The Council’s Constitution.
• Council Corporate Risk Register.
• Internal Audit Activity.
• Internal Assurance Operating Framework. (See section below)
• External Auditor’s Findings and Recommendations.
• Council Strategy.
• Manager (SLT) Assurance feedback.
• External Operating Assurance Framework. (See section below)
• Annual Complaints Performance and Services Improvement Report. including Ombudsman Reports.
• Corporate Governance Group feedback.
• Scrutiny and Cabinet Advisory Board programmes.
• English Devolution White Paper and MHCLG updates and feedback.
• Performance Reporting.
• Staff Surveys and Briefings.
• Annual Report on Counter Fraud Activity.
• Outside Body feedback.
• External Inspection outcomes.

This sections sets out the key sources of internal assurance.

Corporate Management Team / Senior Leadership Team:

• Operational and strategic delivery
• Review of corporate performance, finance, risk reporting
• Medium term financial strategy delivery
• Oversight of complaints
• Contributes to annual governance statement
• Contributes to internal / external audits
• Oversight of reports / decisions of Ombudsman / regulators and peer reviews
• Compliance with Constitution

Head of Paid Service:

• Oversight of corporate performance
• Overall management of staff for discharge of council functions
• Ensures all the council’s functions are properly coordinated

Monitoring Officer:

• Statutory reporting duty under section 5 of the Local Government and Housing Act 1989
• Oversight of arrangements for member decision making
• Principle advisor to Standards Committee
• Oversight of member conduct / standards arrangements
• Oversight of Constitution

Section 151 Officer:

• Statutory reporting duty under section 114 of the Local Government Finance Act 1988
• Oversight of financial affairs to ensure proper administration

Corporate Governance Group:

• Regular meetings of the “golden triangle” (comprising the three statutory
  officers)

Head of Internal Audit:

• Prepare / implement annual internal audit plan
• Audit governance / risk / controls / policies / processes / reporting
• Internal audit quality assurance and improvement

Performance reports to the Executive:

• Measure of delivery against performance indicators
• Considers applicable statutory reports

Scrutiny and Performance Committee:

• Acts as a critical friend and holds the Executive to account for decisions

Audit and Governance Committee:

• Provides an independent and high-level focus on the adequacy of governance, risk and control arrangements. This includes receiving internal and external audit reports

Standards Committee:

• Promotes and maintains high standards of conduct by councillors

Full Council:

• Accountability for governance and non-executive functions
• Approves the budget and policy framework
• Considers applicable statutory and public interest reports

This section sets out the key sources of external assurance (how others hold the Council to account).

External inspection / assessment:

• Local Government and Social Care Ombudsman / Housing Ombudsman
• Health and Safety Executive
• Information Commissioner’s Office
• Planning Inspectorate
• Regulator of Social Housing
• The Building Safety Regulator

Community Engagement:

• Access to information
• Access to meetings
• Complaints and feedback

Judicial System:

• Criminal / civil litigation
• Judicial review

External Peer Challenge:

• External Peer Challenge (examples include Local Government Association Corporate Peer Challenge, Social Housing Peer Review)

External Audit

Local Elections

Government Intervensions

Business Continuity & Cyber and Information Security

Update: Significant progress – strengthening the organisation’s cyber security posture and enhancing our business continuity planning. This includes ongoing work to improve resilience, ensure robust protections are in place and regularly review our preparedness to emerging threats. These efforts are part of our commitment to safeguarding the authority’s operations and public services.

Establishment of Information Governance Framework and Panel.

Continues to be a key corporate risk.

Recommendations from Corporate Peer Review (LGA 2024)

Update: Significant progress. Recommendations developed into Action Plan. Action Plan Update reported to Cabinet on Appendix D – LGA Peer Challenge Action Plan update.pdf

Constitutional Review

Update: Completed and revised Constitution came into effect 1 June 2025.

Local Government Pension Scheme

Issue identified with regards to the methodology for the calculation of assumed pensionable pay for employees.

Statutory Report of Monitoring Officer and Head of Organisational Development reported to Full Council on 20.11.24.

Pension Regulator notified and updated. Affected staff notified and updated. ECG consulted.

Subsequent oversight provided by the Audit, Finance and Governance Committee.

Working with Pension Administrator to produce corrected information alongside issuing of annual pension statement.

Council Tax Collection

Issue identified with regards to the early collection of council tax and NDR direct debits in December 2024.

Investigation undertaken by Audit Manager and Reported to Overview and Scrutiny Committee on 9.1.25 and Audit, Finance and Governance Committee on 22.1.25.

External Communications Review undertaken and report to Overview and Scrutiny Committee on 31.3.25 with recommendations supported and implementation ongoing.

• New Whistleblowing & Speaking Up Policy
• Constitutional Review
• Councillor Development Strategy and Councillor Development Plan
• LGA Cyber 360 Review
• Implementation of LGA Corporate Peer Challenge recommendations
• Council Strategy Review
• Information Governance Framework and Panel
• Support for LGA Debate Not Hate Campaign
• Establishment of the Wealden Together Housing Board