Simple terms explainer

Councils have a duty to make sure their financial systems are well-managed and secure. They must have strong internal controls that help the council carry out its work effectively and manage risks properly. Every year, the council must review how well these controls are working and share the results with councillors or a committee. After this review, they must annually approve and publish an Annual Governance Statement alongside the annual accounts, signed by the Chief Executive and the Council Leader, to show they are being transparent and accountable with public money and addressing, where applicable,  deficiencies outlined in the annual review.