Governance

Proper governance practices
1. To meet the requirement to prepare a statement on internal control, local councils must prepare an Annual Governance Statement.
2. Local councils with annual income and expenditure less than £2.5 million must prepare an Annual Governance Statement as set out in the form of an Annual Return required by this Practitioners’ Guide.
3. Local councils with annual income and expenditure exceeding £2.5 million must either:
• prepare an Annual Governance Statement on the same basis as that set out as in an Annual Return required by this Practitioners’ Guide; or
• prepare an Annual Governance Statement following guidance issued by CIPFA/SOLACE in Delivering Good Governance in Local Government: Framework and subsequent publications.