3.1 The Annual Governance Statement has been prepared with evidence gathered from various different sources to ensure that it properly reflects the effectiveness of the council’s arrangements during 2020/21. This evidence is summarised in paragraphs 3.1.1 to 3.1.6 below.

3.1.1 Heads of Service reviewed the effectiveness of governance arrangements within their area of responsibility by completing a certificate of assurance and updating a 78 point checklist covering: the control environment, risk management, business planning / information / reporting, financial control processes, project management, monitoring and corrective action, human resources, arm’s length bodies, and assessing whether key controls have been applied during the year.

• Through this process Heads of Service have confirmed corporate governance arrangements and financial controls in their area of responsibility have been, or are, working well and there are no other significant matters arising which would require to be raised specifically in the Annual Governance Statement.

3.1.2 In line with the Public Sector Internal Audit Standards (PSIAS) and the council’s Internal Audit Charter, the Audit and Risk Manager is required to provide the Audit and Scrutiny Panel (and the Chief Executive and CMT) with an annual summary of the work undertaken by Internal Audit and to provide an annual independent opinion on the council’s corporate governance, risk management, and internal control arrangements. This provides assurance on the effectiveness of the council’s governance arrangements and systems of internal control and the extent to which the council complies with the good governance principles referred to in paragraph 1.3 above.

• In his Internal Audit annual report for 2020/21, presented to the Chief Executive and CMT in May 2021 and the Audit and Scrutiny Panel in June 2021, the Audit and Risk Manager has stated that the annual Internal Audit opinion is unqualified and offers a generally positive view of the council’s governance and internal control arrangements. More specifically, it is the opinion of the Audit and Risk Manager that reasonable assurance can be placed on the adequacy and effectiveness of the council’s framework of governance, risk management, and internal control for the year ended 31st March 2021.

​​​​​​​3.1.3 Self-evaluation work undertaken by the council as part of its governance and performance management arrangements.

• For 2020/21 this included a review of the council’s response to COVID-19. Utilising a set of independent assessment criteria this self-evaluation exercise focused on four sections - the council’s response to COVID19, governance of the council during COVID-19, support for staff during COVID-19, and new ways of working. This exercise also captured lessons learned from the pandemic to support the council through the recovery and renewal planning processes, and to move to a platform of stability from which available resources were able to be redirected to fulfil the ambition set out in The Plan for North Lanarkshire.
• An Internal Audit was subsequently carried out on the council’s COVID-19 response in order to provide independent assurance of the adequacy and effectiveness of the council’s resilience arrangements and its response to the pandemic. Based on the results of the work, this audit was categorised as offering substantial assurance with only one area for improvement which was implementing an action plan to record and track progress in respect of lessons learned; an action plan was subsequently implemented and is being monitored by the Silver Group.

3.1.4 ​​​​​​​A statement of the effectiveness of the council’s internal financial control systems has been provided by the Head of Financial Solutions (the council’s Section 95 Officer / Chief Financial Officer) to the Chief Executive. The Head of Financial Solutions has also confirmed that the council’s financial arrangements conform with the requirements of the CIPFA Statement on the role of the Chief Financial Officer in local government (2016).

3.1.5​​​​​​​ In adherence to the CIPFA Code of Practice on Managing the Risk of Fraud and Corruption (2014), it is considered that the council has adopted management arrangements that are appropriate for its fraud and corruption risks and commits to maintaining its vigilance to tackling fraud; this commitment is set out in the Anti-Fraud Policy and Fraud Response Plan.

​​​​​​​3.1.6 Comments made by the external auditors and other audit and inspection bodies, feedback from Elected Members and committees in their scrutiny role, and issues considered by the Audit and Scrutiny Panel.

​​​​​​​3.1.7 The council’s arm’s length external organisations (ALEOs) have also completed a certificate of assurance and updated the accompanying 62 point checklist to support the preparation of the council’s statements on corporate governance and internal financial control for year ending 31 March 2021.

• In this respect, the Chief Executive or Senior Representative for each of the ALEOs has confirmed corporate governance arrangements and financial controls in their organisation have been, or are, working well and there are no other significant matters arising which would require to be raised specifically in the council’s Annual Governance Statement.