Local Code of Corporate Governance Appendix A

BOROUGH OF POOLE

LOCAL CODE OF CORPORATE GOVERNANCE

DATE APPROVED BY AUDIT COMMITTEE:18th December 2008

Under review: January – March 2010

CONTENTS

SectionPage

Introduction3

1.0The Principles of Good Governance4

2.0The Council’s Corporate Governance Arrangements4

Principle 1 –Purpose, Outcomes for the Community, and Vision4

Principle 2 – Roles and Responsibilities of Members and Officers 5

Principle 3 – Standards of Conduct and Behaviour6

Principle 4 – Decision Making, Scrutiny and Risk Management 7

Principle 5 – Developing Capacity and Capability 8

Principle 6 – Engaging with Local People and Stakeholders 8

3.0Monitoring, Reviewing and Reporting9

4.0Key Evidence10

5.0Contacts and Further Information12

INTRODUCTION

The Borough of Poole is committed to the highest standards of corporate governance. It recognises that good governance leads to good management, good performance, good stewardship of public money, good public engagement and, ultimately, good outcomes for citizens and service users. Good governance facilitates the Council in pursuing its vision effectively and underpins that vision with mechanisms for control and management of risk. The Council is clear that governance arrangements should not only be sound but also be seen to be sound.

Good governance is important to all involved in the Council, including its Members, its Management Team, and its officers, and is a key responsibility for the Leader of the Council and the Chief Executive.

This Code seeks to demonstrate the Council’s commitment to corporate governance. It sets out the Council’s governance arrangements, who is responsible for them, and how this will be reviewed and monitored.

What is Corporate Governance?

Governance is about how local government bodies ensure that they are doing the right things, in the right way, for the right people, in a timely, inclusive, open honest and accountable manner. It comprises of the systems, processes, cultures and values by which local government bodies are directed and controlled, and through which they account to, engage with and, where appropriate, lead their communities.

The Code seeks to demonstrate to all the Council’s stakeholders:

• Openness and Inclusivity – required to ensure that stakeholders can have confidence in the decision-making and management processes of the Council, and in the approach of the individuals within it. Being open through genuine consultation with stakeholders and providing access to full, accurate and clear information leads to effective and timely action and lends itself to necessary scrutiny. Openness also requires an inclusive approach, which seeks to ensure that all stakeholders and potential stakeholders have the opportunity to engage effectively with the decision–making processes and actions of the Council. It requires an outward focus and a commitment to partnership working. It calls for innovative approaches to consultation and to service provision.

• Integrity – comprising of both straightforward dealing and completeness. It is based upon honesty, selflessness and objectivity, and high standards of propriety and probity in the stewardship of public funds and the management of an authority’s affairs. It is dependent on the effectiveness of the control framework and on the personal standards and professionalism of the members and staff within the authority. It is reflected in the authority’s decision-making procedures, in its service delivery and in the quality of its financial and performance reporting.

• Accountability – is the process whereby the Council, and its Members and staff, are responsible for their decisions and actions, including their stewardship of public funds and all aspects of performance, and submit themselves to appropriate external scrutiny. It is achieved by all parties having a clear understanding of those responsibilities, and having clearly defined roles through a robust structure.

1.0THE PRINCIPLES OF CORPORATE GOVERNANCE

The CIPFA/SOLACE [1]Framework ‘Delivering Good Governance in Local Government’ defines six core principles (see 2.1 – 2.6 below) that should underpin the Council’s governance arrangements. Section 2 of this Code sets out the Council’s corporate governance arrangements in respect of these six principles and the corresponding requirements.

2.0THE COUNCIL’S CORPORATE GOVERNANCE ARRANGEMENTS

2.1Purpose, Outcomes for the Community, and Vision

2.1.1The Borough describes its vision for Poole and local community in Poole’s Sustainable Community Strategy and the Council’s Corporate Strategy, 'Strivingfor Excellence'. These Strategies are reviewed, using timely findings from consultation with a range of stakeholders, data evidence and political leadership, to ensure that the Council and its partners meet the needs of all the community, including changing demography, environmental and economic needs.

2.1.2The Sustainable Community Strategy and the Corporate Strategy are cascaded through the organisation through Service Unit Business Plans and individual appraisals. It is available to wider community through libraries and on boroughofpoole.com.

2.1.3The Borough is a leading member of the Local Strategic Partnership, and recognises the importance of partnership working to deliver its shared vision and objectives. In addition to the Sustainable Community Strategy, a Local Area Agreement (LAA) has been developed between the Council, Poole Partnership and the Government and a new Multi-Area Agreement for Bournemouth, Dorset and Poole was signed off in July 2008.

2.1.4The Borough’s Strategy Team supports the Authority to identify, deliver and monitor its strategic and service priorities in conjunction with partners and to achieve and evidence continuous improvement. A range of performance measures are used to monitor progress and performance management practices are under review to ensure the corporate performance management system is an effective management tool. In addition to Service Unit’s ongoing review and monitoring processes, corporate performance reports are regularly taken to Management Team and Cabinet. The Cabinet receives monthly financial monitoring reports. These are available to the public via boroughofpoole.com.

2.1.5Poole residents are informed of progress against the Council’s objectives in Poole News and through regularly updated content on the Borough’s website.

2.1.6The Medium Term Financial Plan and Capital Programme align resources to the corporate priorities.

2.1.7The Borough of Poole constantly seeks ways of ensuring the economical, effective and efficient use of resources, and for securing continuous improvement in the way in which its functions are exercised. This is also reflected in the Council’s Business Transformation Strategy which aims to ensure the use of financial, property, human and ICT assets are optimised.

2.1.8The Council’s Equality Scheme and action plan - Fairness for All - outlines our committment to promoting equality andcelebrating diversity in our town, our services and our workplace. This is supported by equality impact assessment processes, which all Service Units are required to undertake to ensure services are delivered, designed and continually reviewed to meet the needs of the whole community.

2.2 Roles and Responsibilities of Members and Officers

2.2.1The Council has adopted a Constitution that sets out how the council operates, how decisions are made and the procedures which are followed to ensure that these are efficient, transparent and accountable to local people. In particular, the Constitution:

• States the roles and responsibilities of the Cabinet and individual Cabinet Members, including Leader, Deputy Leader and Portfolio Holders, and explains how the Cabinet operates;
• States the roles and responsibilities of all other Members and Committees;
• Defines the roles of the statutory officers; Head of Paid Services (Chief Executive), Section 151 Officer (Head of Financial Services) and Monitoring Officer (Head of Legal & Democratic Services), and of other senior officers;
• Provides schemes of delegation for Members and Officers;
• Includes a Member-Officer Protocol to provide clarity on their respective roles and responsibilities and facilitate effective communication;
• Contains a Members Allowance Scheme which sets out terms and conditions for remuneration of Members.

The Council’s Constitution is regularly reviewed and updated.

2.2.2This is further supported by policies, procedures and functions, such as the independent remuneration panel.

2.2.3Existing governance arrangements for the Poole Partnership framework, Poole’s Local Strategic Partnership, are being reviewed. In addition, the Council recognises that arrangements for other partnerships need to be reviewed and appropriate governance procedures established.

2.3Standards of Conduct and Behaviour

2.3.1The Council is committed to upholding high ethical standards and good behaviour in all its decisions, activities and decision making. The following policies and protocols are in place and kept under review to assist with fostering this culture:

• The Constitution
• Member Code of Conduct
• Employee Code of Conduct
• Member–Member, and Member–Officer Protocols;

• Anti-Fraud and Corruption Policy;
• Whistleblowing Policy;
• Member and Staff Registers of Interest and of Gifts and Hospitality;
• Financial Regulations (including Procurement Rules and Procedures);
• Corporate Procurement Strategy;
• E-mail and Internet Policy;
• Fairness forAll;
• Prejudice Incident Reporting;
• Dignity at Work Policy.

The Council’s aim is not simply to ensure compliance with policies, legislation and professional standards, but to develop a culture of shared values which reflect the expectations of the public.

2.3.2The Council has a Standards Committee whose role includes promoting and maintaining high standards of conduct by Councillors, through, for example, promoting, advising on, and monitoring the Members’ Code of Conduct. In accordance with changes in the legislation, from 2008/09 the Standards Committee has had primary responsibility for determining complaints in the first instance, and the Borough’s Constitution has been amended to increase the membership of the Standards Committee. Procedures for investigation and determination of complaints have been agreed by Full Council. The Standards Committee is comprised of a majority of Independent Members and is chaired by an Independent. Retirement and succession provisions were introduced so that the Independent element of the membership is refreshed periodically.

2.3.3Where working in partnership, the Council strives to uphold and share its high ethical standards with its partners to achieve the shared vision and objectives. This is reflected, for example, in the Terms of Reference in place with key members of the Local Strategic Partnership.

2.4Decision Making, Scrutiny and Risk Management

2.4.1To ensure that this principle is upheld, the following are in place:

• The Constitution sets out how the Council operates and the process for policy and decision making, both by Members and Committees, and by Officers in the ‘List of Delegations to Officers’;
• Decisions made by the Council, the Cabinet (including Portfolio Holders) and Committees, including Planning and Licensing, are based on written reports, providing clear and relevant information, and are minuted;
• Provision of proper professional legal and/or financial advice to inform decision making through designated 151 and monitoring officer roles;

• Policies such as Financial Regulations (including Procurement Rules and Procedures);

• Improved Overview and Scrutiny Committee arrangements;
• Member and Officer Codes of Conduct;
• Member and Staff Registers of Interest and of Gifts and Hospitality;
• Internal Audit Function independent of the Executive and Scrutiny;
• An independent Audit Committee;

• Corporate Complaints Guidance;

• Whistleblowing Policy;
• Risk Management Strategy and Risk Assessment Process;
• Business Planning and Performance Management Framework – under review;
• Research GovernanceProcess;
• Programme and Project governance processes that support decisions and approvals for changes to service delivery;
• Corporate methodologies for managing and controlling the delivery of change;
• Observation of legislative requirements placed upon the Council.

2.4.2To improve the effectiveness of the scrutiny function, the Council implemented new Overview and Scrutiny arrangements in May 2008, themed around the Council’s Corporate priorities. An overarching Overview and Scrutiny Board facilitates the work of the six Overview and Scrutiny Committees.

2.4.3An Audit Committee operates to provide independent assurance to the Council on issues such as the effectiveness of governance arrangements, risk management and internal control environment.

2.4.4The Borough’s Risk Management Strategy requires the consideration of risk in all key management processes undertaken. The Council is continuing to embed systems for identifying, evaluating and managing all significant risks, including those relating to partnership working and ensures that dedicated risk management resources are in place to support this. During 2009/10, this also included work to review and update the Council’s Corporate Risk Register. Management Team and the Audit Committee monitor the refreshed register on a regular basis.

2.4.5It is essential that the research evidence the Council uses to inform its decisions is accurate, reliable, and accessible. Therefore as required by the Department of Health the Council has a Research Governance Framework designed to ensure minimum standards, co-ordination, ethics, transparency in research undertaken (see 2.6).

2.5Developing Capacity and Capability

2.5.1The Borough aims to ensure that all Members and Officers of the Council have the skills, knowledge and capacity they need to discharge their responsibilities effectively. It recognises the value of a well-trained, competent workforce, and has achieved Investors in People accreditation.

2.5.2The Council achieves this by:

• Member and Officer induction programmes and training plans;
• Ensuring all employees have job descriptions and that these, and person specifications, are used as the basis for recruitment;
• Ensuring statutory officers are appropriate skilled, experienced and supported by the Council;
• An annual Appraisal scheme for employees to identify training and development needs;
• Developing a Corporate Training Planner which is circulated to all staff providing information on some of the courses available;
• Ensuring that equality and diversity issues are actively addressed through the Fairness for All equalities scheme and action plan;
• The Workforce Strategy (currently under review) recognises the importance of planning to ensure the right number of people with the right skills are employed to effectively and efficiently provide excellent services, now and in the future.

2.6Engaging with Local People and Stakeholders

2.6.1The Council aims to have clear channels of communication with all sections of the community and other stakeholders, to ensure accountability and encourage open consultation.

2.6.2The Council’s magazine ‘Poole News’ is delivered to all households in the Borough six times a year and ‘Business Brief’ to all local businesses three times a year. The Borough’s website also provides a continually updated information source on plans, performance and services, and allows ready access to past and present consultations. Customer feedback (covering compliments, comments and complaints) is also regularly analysed and used by Service Units to inform continual service improvement.

2.6.3Residents needs and aspirations are established using a range of research/consultation techniques. We maintain a citizens panel (Poole Opinion Panel, POP) which has at least two surveys per year. We coordinate the Place Survey which is analysed for differences in public views by area, and age for example. In addition, key national data sets like the Census and Indices of Deprivation and anonymised administrative data held within the Council and partner agencies are used to inform targeted strategies and initiative for the most vulnerable members of our community, e.g. the Children and Young Peoples Plan.

2.6.4All research and consultation is coordinated within the Borough via an online database which is used variously, including as a resource of research evidence to inform service and policy planning. Partner agencies and the public can access and add to this online database.

2.6.5A Research Governance Board meets quarterly to provide quality assurance to help safeguard researchers and to protect service users and carers.

2.6.6The Council will hold committee meetings in public, unless there is a specific reason not to, in which case it will comply with the Access to Information provisions in the local Government Act 1972 (as amended). The Forward Plan, showing when Key Decisions will be made, Committee reports and minutes are available to the public. The six Area Committees help bring decision-making closer to local communities and involve local people in decisions by having open forum discussions at each meeting. Members may also hold surgeries for their constituents, to enable residents’ concerns to be heard and responded to.

2.6.7The Borough seeks to work with partners and other stakeholders to meet local needs and priorities. Existing governance arrangements for key partnerships in the Local Strategic Partnership, including the Poole Partnership Steering Group, and Performance Management Group, are under review. Key partnerships, such as the Children’s Governance Board, Town Centre Management Board and Tourism Management Board have clear reporting and decision-making arrangements in place. The Council is in the process of formalising existing governance arrangements for other partnerships to ensure responsibilities are clearly defined and accountability is robust.

2.6.8The ‘Arrangements for Joint Consultation with Employees’ document outlines how staff and their representatives will be consulted and in what circumstances.

3.0MONITORING, REVIEWING AND REPORTING

3.1The Audit Committee has responsibility for monitoring and reviewing the Council’s corporate governance arrangements.

3.2In addition, the Statutory Officers Group, comprising the Head of Legal & Democratic Services (Monitoring Officer), the Head of Financial Services (S151 Officer) and the Chief Executive, are responsible for the development and delivery of robust corporate governance arrangements, and for the on-going review of the effectiveness of the same.