Waverley Borough Council Home Page Waverley Borough Council Home Page

Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 13/06/2006
Statement on Internal Control



30TH MAY 2006


[Wards Affected: N/A]

Summary and Purpose

Each year Waverley is required to produce a ‘Statement on Internal Control’ (SIC) which sets out the elements of the Council’s internal control framework and identifies any issues that need addressing in the coming year. The 2005-06 statement is attached and was considered by the Corporate Overview and Scrutiny Committee at its meeting on 30th May 2006.
Social/community Implications

This report has no direct social/community implications.

Environmental Implications

This report has no direct environmental implications.

E-Government Implications

There are no direct e-government implications but electronic means are used to communicate Waverley’s controls both internally and externally.

Resource and Legal Implications

There are no direct resource implications but having a sound system of internal control is a key element to the effective management of Waverley’s resources. Managing risk and eliminating waste and losses feature in the Council’s internal control framework. This Statement is required under the Accounts and Audit Regulations 2003.

1. As part of the Council’s governance arrangements, Waverley is required to produce and publish an annual statement which summarises the internal control framework that is in place. This statement was introduced in 2003-04 and is required by the Accounts and Audit Regulations 2003. Reference also has to be made to the SIC in the annual Best Value Performance Plan. The Statement is intended to give assurance to Members and other stakeholders, including the Audit Commission, that the Council’s control arrangements are robust and effective.

2. The Statement on Internal Control (SIC) is usually published as part of the annual Statement of Accounts with Members’ consideration being part of the accounts' approval process. However, the Audit Commission is now encouraging Councils to raise the importance of this statement and is expecting best practice to be followed. Best practice guidance identifies the need for separate cross-departmental officer focus on the Council’s control framework and more opportunity for members to discuss any control issues, separate from the annual accounts approval.

3. The latest Comprehensive Performance Assessment framework includes a judgement on the Council’s internal control arrangements. This is also a key issue which is covered in the Audit Commission’s Annual Audit Letter.

Waverley’s SIC

4. To respond to these additional requirements, officers have formed a group to oversee the Waverley’s internal control arrangements. For the 2005-06 Statement, this group has completed a detailed best practice matrix which has been summarised into the draft Statement on Internal Control which is attached at Annexe 1. The Group has also reviewed the process followed by the other Surrey Authorities.

5. This Statement includes a summary of key areas where actions are necessary to ensure that Waverley’s arrangements are in line with best practice.

Observations of the Corporate Overview and Scrutiny Committee

6. The Corporate Overview and Scrutiny Committee had no particular observations to make on the Statement of Internal Control but wished to commend it to the Executive.


It is recommended that

1. it is appropriate for the Executive to be responsible for reviewing and approving Waverley's annual Statement on Internal Control, following prior consideration by the Corporate Overview and Scrutiny Committee;

2. the draft Statement for 2005-06 and the proposed action plan be approved; and

3. the corporate group of senior officers, referred to in the report, be requested to review the Council's internal control arrangements as appropriate and oversee the implementation of the agreed action plan.

Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.

Name: Graeme Clark Telephone: 01483 523236
E-mail: grclark@waverley.gov.uk