The Director of Finance presented the Audit Commission Annual Governance Report, which was presented to the Audit and Risk Management Committee on 23 September 2009 (minute 28 refers). In addition to an unqualified audit opinion on the accounts, the District Auditor had issued an unqualified value for money conclusion stating that the Council had adequate arrangements to secure economy, efficiency and effectiveness in its use of resources in 2008-2009.

He had also completed his work on the new Use of Resources assessment for 2008/2009. The Director reported that the new approach key lines of enquiry reflected higher expectations than the previous assessment and included some areas not previously reviewed, including commissioning and procurement and use of natural resources. There was also a changed emphasis this year in that the focus was on being able to evidence the outcomes achieved as a result of the actions taken during the year. Evidence nationally indicated that most local authorities had received a lower assessment than the previous year and he reported that Wirral had been assessed as two, with regard to Managing Finances, Governing the Business and Managing Resources. However, the Audit Commission had recognised the improved performance in those areas. The Director commented that his formal Letter of Representation was included in the Annual Governance Report, which also contained an action plan to ensure compliance with the recommendations contained within the Report.

Resolved – That the action plan contained within the Annual Governance Report be approved.