The minutes of the Standards and Constitutional Oversight Committee of 10 September, 2020, together with the revised Council Constitution, are attached.

The first item requiring approval was in relation to the adoption of a revised Council Constitution.

Councillor Tony Cox moved and Councillor Moira McLaughlin seconded the  adoption of a revised Council Constitution as recommended by the Standards and Constitutional Oversight Committee at its meeting on 10 September, 2020, subject to the inclusion of the consequential amendments circulated with the agenda supplement.

Councillor Phil Gilchrist moved and Councillor Chris Carubia seconded an amendment as follows:

“Membership of the Audit and Risk Management Committee shall take due account of the available evidence, advice and best practice existing at the time of its composition. Council not only recognises the importance of its independence but also has due regard to the experience and judgment of its members.

Having regard to this, it is noted that the CIPFA ‘Practical Guidance for Local Authorities and Police Audit Committees 2018’ is written exclusively in the language of executive functions and a leader or mayor and cabinet system and that, on being asked, the CIPFA Better Governance Advisor provided only a brief interpretation that “it is best to keep separation of audit committee members (particularly chairs) from policy committees”

Officers sought and received further information on this point from CIPFA which is set out here.

I would define ‘executive member’ as used in the guidance to mean a member of the Policy and Resources Committee or chair of one of the other policy committees.

The primary purpose of the chair of the audit committee is to ensure that it fulfils its purpose and operates in accordance with its terms of reference. The principles in the CIPFA Position Statement should underpin the operation of the committee. If the chair of the audit committee attends Policy and Resources Committee it should be to represent the audit committee and this should be as a non-voting observer of the Policy and Resources Committee rather than a voting member.

Accordingly, in the interests of good practice, the membership of the Audit and Risk Management Committee should be amended at Section 13.1 of Part 3(B) of the Constitution and a paragraph inserted to read:

(a)  The membership of the Audit and Risk Management Committee may not include the Leader or Deputy Leader of the Council or a Chair of a Policy and Services Committee.

(b)  Members may not review decisions as part of the Audit and Risk Management Committee that they have made as a member of another Committee. In this case, they should declare an interest and leave the meeting room. If a member feels that there is a particular reason why he or she should participate, a dispensation must be sought from the Constitution and Standards Committee or Monitoring Officer.

Whilst the opportunity will be taken to explore more fully with CIPFA and external audit how the CIPFA ‘Practical Guidance for Local Authorities and Police Audit Committees 2018’ can be most appropriately and practically applied to a committee system and reported upon as part of the review of the constitution at the most appropriate opportunity Council considers that the steps taken above provide an adequate balance between the issues of experience and independence at this stage.”

A second amendment was then moved by Councillor Janette Williamson and seconded by Councillor Anita Leech, as follows:

Insert at 6th paragraph, after, ‘Accordingly…’

Council accepts that Guidance and

Delete ‘or’ at 7th paragraph and insert at end:

or any other member of the Policy and Resources Committee

Following a debate and Councillor Tony Cox having replied, the first amendment was put and carried (58:2) (Two abstentions).

The second amendment was put and carried (32:29) (One abstention).

Resolved (32:29) (One abstention) – That the revised Council Constitution, as recommended for adoption by the Standards and Constitutional Oversight Committee at its meeting on 10 September, 2020, subject to the inclusion of the consequential amendments circulated with the agenda supplement, and, as amended by both the Liberal Democrat amendment and the subsequent Labour amendment, (as shown below) be adopted as this Council’s Constitution.

Membership of the Audit and Risk Management Committee shall take due account of the available evidence, advice and best practice existing at the time of its composition. Council not only recognises the importance of its independence but also has due regard to the experience and judgment of its members.

Having regard to this, it is noted that the CIPFA ‘Practical Guidance for Local Authorities and Police Audit Committees 2018’ is written exclusively in the language of executive functions and a leader or mayor and cabinet system and that, on being asked, the CIPFA Better Governance Advisor provided only a brief interpretation that “it is best to keep separation of audit committee members (particularly chairs) from policy committees”

Officers sought and received further information on this point from CIPFA which is set out here.

I would define ‘executive member’ as used in the guidance to mean a member of the Policy and Resources Committee or chair of one of the other policy committees.

The primary purpose of the chair of the audit committee is to ensure that it fulfils its purpose and operates in accordance with its terms of reference. The principles in the CIPFA Position Statement should underpin the operation of the committee. If the chair of the audit committee attends Policy and Resources Committee it should be to represent the audit committee and this should be as a non-voting observer of the Policy and Resources Committee rather than a voting member.

Accordingly, Council accepts that guidance and in the interests of good practice, the membership of the Audit and Risk Management Committee should be amended at Section 13.1 of Part 3(B) of the Constitution and a paragraph inserted to read:

(a)  The membership of the Audit and Risk Management Committee may not include Leader or Deputy Leader of the Council, a Chair of a Policy and Services Committee or any other member of the Policy and Resources Committee

(b)  Members may not review decisions as part of the of the Audit and Risk Management Committee that they have made as a member of another Committee. In this case, they should declare an interest and leave the meeting room. If a member feels that there is a particular reason why he or she should participate, a dispensation must be sought from the Constitution and Standards Committee or Monitoring Officer.

Whilst the opportunity will be taken to explore more fully with CIPFA and external audit how the CIPFA ‘Practical Guidance for Local Authorities and Police Audit Committees 2018’ can be most appropriately and practically applied to a committee system and reported upon as part of the review of the constitution at the most appropriate opportunity Council considers that the steps taken above provide an adequate balance between the issues of experience and independence at this stage.