Agenda item

That the report be received and that Cabinet ensure that the actions in relation to Cabinet reports and business cases be adopted.

The Cabinet received a report from the Audit & Corporate Governance Committee regarding a report from the external auditors, Grant Thornton, in relation to an objection received from a member of the public on the 2018/19 accounts regarding the purchase of Observatory House.

The objection submitted had not been upheld by Grant Thornton and their letter setting of their findings had been presented to the audit committee.  However, Grant Thornton had decided to make two statutory recommendations relating to the way the decision to acquire the property was taken; and the limited information made available to Members at the meeting of the Cabinet on 28^th May 2018 when the decision to acquire Observatory House was made.  Statutory recommendations needed to be considered and responded to by full Council and this would take place at the meeting on 9^th March 2023.

Given the issues raised it was appropriate that Cabinet receive the auditors findings, lessons learnt and agree the actions be implemented.  The specific recommendations were:

·  “Information to support decision-making – ensure that for important (in financial or strategic terms) decisions, sufficient and adequate information is made available to members within the formal governance processes to support the decisions made, including a comprehensive business case.

·  Use of Lead Members & Directors Group – ensure that the informal Lead Members & Directors Group is not used as a substitute for formal decision-making by Cabinet and other parts of the formal member structure, ensuring there is adequate consideration and documentation of important decisions within the formal decision-making arrangements.”

The report set out the lesson learnt and the improvements made to decision making processes since 2018/19, including new processes to significantly improve the quality of reports for key decisions, including full business cases.  Further recommended actions included additional training for Members and officers on governance, decision making and business cases.

The Cabinet noted that the objection had not been upheld, but accepted the findings leading to the issuing of statutory recommendations.  The management response that would be considered by Council was endorsed.  The Leader commented that further improvements were needed in the rigour of decision making processes, and timeliness of reports, and that this was a matter he would discuss further with the Chief Executive.

Resolved –  That the report be received and that Cabinet ensure that the actions in relation to Cabinet reports and business cases be adopted.