agenda item no. report to: executive board · achieving our vision of being arong st community...
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AGENDA ITEM NO.
REPORT TO: Executive Board REPORT NO: HF/49/13 DATE: 8 October 2013 LEAD MEMBER: Councillor Malcolm King OBE (Policy, Finance, Performance and Governance) CONTACT OFFICER: David Stewart (Tel: 29238) SUBJECT: Governance Code WARD: N/A 1. PURPOSE OF THE REPORT 1.1 To approve the Council’s Corporate Governance Code. 2. EXECUTIVE SUMMARY 2.1 Good corporate governance is essential to the Council successfully meeting its
Council Plan outcomes. 2.2 All UK local authorities are expected to have in place a local code of corporate
governance. 2.3 The Council’s current Code is due for renewal by November 2013. 2.4 A proposed new Code (attached) has been prepared, based on official guidance. This
is submitted for approval. 3 RECOMMENDATION 3.1 Members approve the proposed Governance Code.
REASONS FOR RECOMMENDATIONS
(i) To set out the Council’s commitment to and requirement for good governance. (ii) To enable compliance with regulatory best practice. (iii) To help the Council to successfully achieve its Council Plan outcomes
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4. BACKGROUND INFORMATION 4.1 It is essential that the Council, as a democratic body, engages with and accounts to its
many stakeholders effectively, and that they can have confidence in the way that the Council is led and run.
4.2 ‘Corporate Governance’ describes how the Council ensures that it is doing the right
things in the right way for the right people in a way which is timely, inclusive, open, honest and accountable. It comprises systems and processes but also culture and values – it is about conduct and behaviour as well as compliance.
4.3 The proposed Governance Code sets out the Council’s commitment to good
governance, based on six core principles that apply to all public sector organisations, its commitment to each principle and what it does to meet these commitments.
4.4 Although based on official guidance provided to UK local authorities1, the opportunity
has been taken to link the Code more explicitly to the Council Plan: It should be viewed as underpinning the outcomes set out in the Council Plan.
4.5 During a period of financial pressures and restructuring, it is essential that those
policies and procedures that are fundamental to good governance are identified and safeguarded. The proposed Code sets out some of the key policies and processes that comprise the Council’s governance framework.
4.6 Each year, the Council is statutorily required to undertake a review of its governance
arrangements and to publish the results in its Annual Governance Statement. This process effectively reviews compliance against the Code and the effectiveness of the governance framework.
4.7 The Code will be included in the Council’s constitution under ‘Codes and Protocols’
and will also be posted separately on the Council’s website and intranet (‘SAM’). 4.8 Policy Framework – This Governance Code supports the Organisation Theme of the
Council Plan. 4.9 Budget – None. 4.10 Legal – The requirement for a Governance Code is regulatory rather than statutory.
Application of the Code, however, will better enable the Council to meet its statutory responsibilities.
4.11 Staffing – None. 4.12 Equality/Human Rights – An Equality Impact Assessment has been undertaken
(FIN/EIA 002). This did not identify any negative impacts as a result of the proposed changes, but concluded that acceptance of the proposed Code will positively impact the Council’s equality duties.
4.13 Risks – The Council’s governance commitments will be specifically assessed by the
annual Principal Risk Review – an all-member workshop schedules for 5 November 2013.
1 Issued jointly by the Society of Local Authority Chief Executives (SOLACE) and the Chartered Institute of Public Finance and Accountancy (CIPFA).
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5. CONSULTATION 5.1 All officers at Senior Management Team level have been provided wit the opportunity
to comment on the proposed new Code. Responses have been taken into account. 6. EVALUATION OF OPTIONS 6.1 N/A. 7. SCRUTINY COMMITTEE COMMENTS 7.1 This report has not been considered by Scrutiny. BACKGROUND PAPERS LOCATION WEBSITE INFO. ‘Delivering Good Governance in Local Government’ (SOLACE & CIPFA)
Finance Department
The Good Governance Standard for Public Services (The Independent Commission on Good Governance in Public Services)
Finance Department
The Council Plan http://www.internal.wrexham.gov.uk/wordpress/sam/departments/chief-exec/the-council-plan-2012-16/
THEGOVERNANCE CODE
The Corporate Governance Code of Wrexham County Borough Council
WREXHAM COUNTY BOROUGH COUNCIL: GOVERNANCE CODE A. INTRODUCTION 1. The Council is a complex organisation which affects all who live and work in
Wrexham and businesses and organisations that are based here. It is essential that there is confidence in our ways of working and, that as a democratic body, we engage with and account to our citizens effectively.
2. We are therefore committed to good corporate governance – to doing the
right things in the right way for the right people in a way which is timely, inclusive, open, honest and accountable. This Code sets out that commitment, and lists the key policies and processes necessary for meeting it (Appendix A).
3. Effective governance is essential for achieving our vision and priorities as
set out in the Council Plan (Appendix B), but we recognise that controls must be proportionate to risk so as not to impede performance.
4. As well as the processes by which the Council is led and managed, culture
and values ‐ the way that councillors and employees think and act ‐ are just as essential for good governance
5. This Code is based on guidance to all UK local authorities1 which centres on
six core principles which are designed to underpin the governance arrangements of all public sector bodies. Good governance requires all of these principles to be met. They are as follows:
1: Focusing on the Council’s purpose and on the outcomes for Wrexham
and creating and implementing a vision for the local area. 2: Our councillors and employees working together to achieve a common
purpose with clearly defined functions and roles in order to achieve the best possible outcomes for the citizens of Wrexham.
3: Promoting values for the authority and demonstrating good governance
by upholding high standards of conduct and behaviour. 4: Taking informed and transparent decisions which are subject to effective
scrutiny and managing risk in order to foster innovation.
1 ‘Delivering Good Governance in Local Government’, issued jointly by the Society of Local Authority Chief Executives (SOLACE) and the Chartered Institute of Public Finance and Accountancy (CIPFA).
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5: Developing the capacity and capability of members and employees to be effective.
6: Engaging with local people and other stakeholders to ensure robust
public accountability. 6. The Code sets out our specific commitment to each of these principles
(section B) and then describes how we review and report on our corporate governance arrangements (section C).
B. CORPORATE GOVERNANCE COMMITMENTS Core Principle 1 ‐ Purpose & Outcomes: Focusing on the Council’s purpose and on the outcomes for Wrexham and creating and implementing a vision for the local area. We are committed to: achieving our vision of being a strong community leader, and to working
with our partners to promote and improve the economic, social and environmental well‐being of Wrexham, as set out in ‘Our Wrexham Plan’,
clearly communicating our vision, purpose and intended outcomes, as set out in the Council Plan, and how well we have done,
making the best use of resources and to providing a high quality service. We will therefore ensure that: (i) we continue to develop, promote and regularly review our vision and
purpose and their impact on the way that the Council is run, (ii) the Council and its partners understand and share an agreed vision that
underpins all joint work, (iii) we clearly communicate what we are doing, what we have achieved and
how well, and our financial position, (iv) our services are delivered in ways that provide the best value‐for‐money, (v) service quality and performance are measured by the most appropriate
means and that the information required for effective and regular review is available,
(vi) there are effective arrangements to identify and deal with failures in service delivery.
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Core Principle 2 ‐ Roles & Responsibilities: Our councillors and employees working together to achieve a common purpose with clearly defined functions and roles in order to achieve the best possible outcomes for the citizens of Wrexham. We are committed to: ensuring that there is effective leadership throughout the Council, with a
clear understanding of roles and functions and responsibilities for decision making,
promoting constructive relationships throughout the Council, functions being carried out to a high standard, the Council, our partners and the public knowing what to expect of each
other. We will therefore ensure that: (i) the respective roles and responsibilities of the executive and executive
councillors individually, those of other councillors generally and individually and those of senior officers, are set out clearly,
(ii) we specify what decision making powers are delegated and what must be decided by the Council as a whole, taking account of relevant legislation,
(iii) we have in place effective arrangements for communication between councillors and officers and provide guidance on their relations with each other,
(iv) we hold the Chief Executive responsible and accountable for all aspects of operational management, and that there is a shared understanding of the respective roles and responsibilities of the Chief Executive and the Leader,
(v) we have in post senior officers who are responsible for ensuring that appropriate advice is given on all financial matters, for keeping
proper financial records and accounts and for maintaining an effective system of financial control,
agreed procedures are followed and that we comply with all applicable statutes and regulations,
(vi) the terms and conditions for paying councillors and employees are set out and that there is an effective structure for managing the process,
(vii) we develop our vision, priorities and targets through robust mechanisms and in consultation with the local community and other key stakeholders, and that they are clearly stated and communicated,
(viii) we operate effective mechanisms to monitor service delivery, (ix) the legal status of our partnerships is clear and that all concerned in
partnership working understand the extent of their authority to bind their organisation to partnership decisions.
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Core Principle 3 ‐ Values: Promoting values for the authority and demonstrating good governance by upholding high standards of conduct and behaviour. We are committed to: putting our agreed values, as set out in the Council Plan2, into practice so
that they define our behaviour and the way that we work as an organisation,
our councillors and employees behaving in ways that exemplify high standards of conduct and good governance
promoting these standards across the Council and with our partners. We will therefore ensure that: (i) our values are used as a guide for decision making and as a basis for
developing positive and trusting relationships both inside and outside the Council,
(ii) we regularly communicate our values with councillors, staff, the public and our partners,
(iii) our leadership sets a tone for the organisation by creating and championing a climate of openness, support and respect,
(iv) we regularly communicate the standards of conduct and personal behaviour expected of councillors and staff, of work between councillors and staff and with our partners and the community,
(v) we operate effective arrangements to prevent councillors and employees being influenced by prejudice, bias or conflicts of interest,
(vi) our procedures and operations are designed in line with appropriate ethical standards, and that we monitor their continuing effectiveness in practice,
(vii) we operate an effective standards committee, (viii) we have in place agreed values for partnerships against which decisions
can be judged, (ix) we provide effective and fully accessible whistle blowing arrangements.
2 Trust – saying what you are going to do, doing it, and letting people know what you have done. Respect – valuing and having consideration for the people and communities we work with. Innovation – the ambition and enthusiasm to be creative and make Wrexham the best. Flexibility – the ability to adapt to changes and create new climates to achieve results. Integrity – confidence in people to deliver. Accountability at the right level. Commitment – Dedication to deliver on our priorities and become a strong community leader
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Core Principle 4 ‐ Taking Effective Decisions: Taking informed and transparent decisions which are subject to effective scrutiny and managing risk in order to foster innovation. We are committed to: conducting all business openly and transparently listening to and acting on constructive scrutiny, providing good quality information, advice and support to enable services
to be delivered effectively and in accordance with what the public and customers need,
being open and transparent about how decisions are taken and to ensuring that we take account of risk
using our legal powers to the full benefit of Wrexham. We will therefore ensure that: (i) we scrutinise decision making and performance in a way which
encourages constructive challenge and enhances overall performance, (ii) we operate open and effective mechanisms for documenting evidence
for decisions and that we record the criteria, rationale and considerations on which decisions are based,
(iii) our councillors and employees are safeguarded against conflicts of interest, and that the arrangements operate in practice
(iv) we operate an effective audit committee whose role is independent of the executive and scrutiny functions
(v) complaints are dealt with in a way which is transparent, accessible and which drives improvements where necessary
(vi) those responsible for decision making are provided with: information that is relevant, timely and gives clear explanations of
technical issues and their implications, the necessary professional advice on matters that have legal or
financial implications, which is recorded well in advance of decision making and used appropriately,
(vii) risk management is embedded into the culture of the organisation, with councillors and managers at all levels recognising that managing risk is part of their job
(viii) we do not exceed our legal powers, that we observe all legal requirements and that we integrate the principles of good law into our decision making processes.
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Core Principle 5 ‐ Capacity & Capability: Developing the capacity and capability of members and employees to be effective. We are committed to: our structures and ways of working being appropriate to the Council’s
needs and to meeting expectations and future requirements, having in place highly skilled and motivated councillors and staff for
delivering our priorities, sustaining confidence in our services and creating the conditions for success,
recognising and encouraging talent among members and in our workforce. We will therefore ensure that: (i) we provide induction and training programmes tailored to individual
needs, (ii) we enable roles to be met effectively by identifying and meeting any
training and development needs that result from: reviewing the performance of the executive as a whole and of
individual councillors, regularly assessing the skills required by our workforce,
(iii) we provide regular opportunities for knowledge to be updated and encourage the transfer of skills and knowledge,
(iv) our statutory officers possess the skills, resources and support necessary to perform effectively in their roles and that these roles are properly understood throughout the Council,
(v) we provide councillors outside the executive with sufficient support to enable them to carry out their duties effectively.
Core Principle 6 ‐ Engagement & Accountability: Engaging with local people and other stakeholders to ensure robust public accountability. We are committed to: supporting and responding to robust scrutiny, both internally and from
outside bodies, developing constructive relationships with citizens, communities and
partners, an active and planned approach to dialogue with and accountability to the
public to ensure effective and appropriate service delivery.
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We will therefore ensure that: (i) there is a clear understanding, both within the Council and outside, of
what we are accountable for and to whom, (ii) we assess the effectiveness of our relationships with regulators and
inspectors and also organisations with whom we work in partnership, (iii) we report annually on our scrutiny function’s activity, (iv) we have in place clear channels of communication with the public and
other stakeholders, and that these operate effectively, (v) we hold meetings in public unless there are good reasons for
confidentiality, (vi) we consult and engage with our citizens so that we understand and
respond to them, design and deliver services in the most effective, efficient and inclusive way and deal with competing demands and priorities,
(vii) the Council as a whole is open and accessible to the community, service users and its staff in all its dealings, preserving confidentiality in specific circumstances where proper and appropriate,
(viii) we consult and involve staff and their representatives in decision making. C. HOW WE REVIEW OUR CORPORATE GOVERNANCE 1. The Leader and Chief Executive are required to ensure that each year, a
review is undertaken to measure the extent to which we have met the requirements of this Code.
2. The results of the review are included in the Annual Governance Statement
which is published with the Annual Statement of Accounts. 3. Where the review reveals possible gaps or weaknesses, action is agreed to
ensure effective governance in future. Agreed action is monitored for implementation.
4. Where necessary, this Code will be amended as a result of the annual
review, changes in best practice or statutory changes. Any such amendment will require Executive Board approval.
5. This code will be renewed no later than November 2017.
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APPENDIX A GOVERNANCE FRAMEWORK OF KEY POLICIES, PROCEDURES AND WAYS OF WORKING
The Governance Framework comprises the policies systems, processes, cultures and values through which the Council directs and controls its functions, and through which it accounts to, engages with and, where appropriate, leads communities.
Core Principles
Element Notes Produced / Reviewed Annually
Produced / Reviewed
as Required
Supporting Processes, Monitoring
& Regulation
1 Purpose &
Outcomes
2 Roles &
Responsibilities
3 Values
4 Taking Effective
Decisions
5 Capacity &
Cap
ability
6 Engagement &
Accountability
Acceptable Use of ICT Facilities’
Annual Improvement Report Produced by the External auditor
Annual Scrutiny Report
Annual Statement of Accounts
Audit Committee
Budget Planning Process & Book
Code of Conduct ‐ Employees • Officers’ Registers of Interests • Registers of Gifts and Hospitality • Registers of Membership of Secret Societies
Code of Conduct ‐ Members
Code of Conduct (Planning)
Communications Strategy
Constitution
Consultation & Engagement Strategy Under development
Corporate Complaints Policy
Council Plan
Council Tax Leaflet
Counter Fraud Strategy Includes guidance on Bribery Act 2010
Customer Focus Strategy
Democratic Services Function Committee & Officer
Emergency Management Framework
Financial Regulations
‘Focused On Our Performance’
Governance Assurance Statement for Schools
Health & Safety Policy
ICT Security Policy
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Core Principles
Element Notes Produced / Reviewed Annually
Produced / Reviewed
as Required
Supporting Processes, Monitoring
& Regulation
1 Purpose &
Outcomes
2 Roles &
Responsibilities
3 Values
4 Taking Effective
Decisions
5 Capacity &
Cap
ability
6 Engagement &
Accountability
Information Management Strategy Under development ‐ includes Data Protection, Environmental Information & Freedom of Information Policies
Internal Audit: • External Audit Review of Internal Audit • Internal Audit Charter • Audit & Technical Manager’s Annual Report
Joint Consultative Committee
Local Services Board
Medium Term Financial Strategy
Member Development Programme
Members Salaries & Remuneration Schemes
Organisation Development and Workforce Strategy
‘Our Wrexham Plan’
Partnership Toolkit
Principal Risk Register
Procurement Strategy
Project Management Handbook
Protection of Vulnerable People • Child Protection Procedures • Social Svces Annual Director's Report & Associated Business Plan • Wrexham Area Child Protection Committee Business Plan
Regulation of Investigatory Powers Policy
Risk Management Policy
Senior Management Structure Includes agreed roles of : • Chief Executive • Head of Finance • Head of Corp & Cust Services (Monitoring Officer)
Service Continuity Plans
Social Media Guidelines for Employees
Staff Appraisals (PRCDs)
Standards Committee
Strategic Equality Plan
Treasury Management Strategy / Annual Review
Welsh Language Scheme
Whistle blowing Policy
APPENDIX B
EXTRACT FROM THE COUNCIL PLAN, 2012 ‐ 2016 Our Vision The Council as a strong community leader Our Purpose To ensure Wrexham and its people are supported to fulfil their potential and prosper Our Guiding Principles Citizens, Customers and Equality – Being at the centre of everything we do Members – Elected Members as community leaders being at the heart of decision making Welsh Language – Supporting and encouraging customers and staff to communicate in Welsh and English Our Values
Trust – saying what you are going to do, doing it, and letting people know what you have done.
Respect – valuing and having consideration for the people and communities we work with.
Innovation – the ambition and enthusiasm to be creative and make Wrexham the best.
Flexibility – the ability to adapt to changes and create new climates to achieve results.
Integrity – confidence in people to deliver. Accountability at the right level.
Commitment – Dedication to deliver on our priorities and become a strong community leader.
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