Regional Code of Corporate Governance

Introduction

Corporate governance is the system and processes, culture and values by which regional working is directed and controlled, and through which it accounts to, engages with and offers support to school leaders, governors and teachers. 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.

ThisCode sets out standards of good practice and is supported by appropriate policies, systems and procedures which are designed to achieve sound corporate governance. It supports the Region’s vision ‘for a consistently high performing school network across the region with every school a good school offering high standards of teaching with all learners achieving their maximum potential’. This Code outlines the Region’s approach to corporate governance, supports its vision and demonstrates the commitment to uphold the highest standards of integrity, openness and accountability.

Core principle 1: Focusing on the purpose of the Region and on the outcomes for the learning community and creating and implementing a vision for the region

To achieve this we will:

  • develop and promote ERW’s purpose and vision
  • review on a regular basis ERW’s vision for the region and its implications for the Region’s governance arrangements
  • ensure that partnerships are underpinned by a common vision of their work that is understood and agreed by all partners
  • publish annual accounts on a timely basis to communicate the Region’s activities and achievements, its financial position and performance
  • decide how the quality of service for users is to be measured and make sure that the information needed to review service quality effectively and regularly is available
  • put in place effective arrangements to identify and deal with failure in service delivery
  • decide how value for money is to be measured and make sure that the Region or partnership has the information needed to review value for money and performance effectively
  • ensure that the Region maintains a prudential financial framework and that timely, accurate and impartial financial advice is provided to assist decision making and meeting objectives.

Core principle 2: Members and Officers working together to achieve a common purpose with clearly defined functions and roles

To achieve this we will:

  • set out a clear statement of the respective roles and responsibilities of the Joint Committee and ExecutiveBoard collectively and individually; regional senior staff and partner organisations
  • set out in the Region’s constitution the responsibility for functions between the Joint Committee and Executive Board and including details of the delegations to Officers, and ensure that it is monitored and updated when required
  • make the Managing Director responsible and accountable to the Joint Committee for all aspects of operational management
  • make the nominated Chief Finance Officer responsible to the Joint Committee for ensuring that appropriate advice is given on all financial matters, that appropriate management accounting systems, functions and controls are in place and for keeping proper financial records and accounts, and for maintaining an effective system of internal financial control
  • ensure governance arrangements allow the CFO and Monitoring Officer direct access to the Managing Director
  • make a Senior Officer (usually the Monitoring Officer or Head of Legal Services) responsible to the Joint Committeefor ensuring that agreed procedures are followed and that all applicable statutes, orders and regulations are complied with
  • develop protocols to ensure effective communication betweenElected Members, Staff and Stakeholdersin their respective roles
  • ensure an effective and appropriate structure for managing the setting of terms and conditions for Staff
  • ensure that effective mechanisms exist to monitor service delivery and performance
  • ensure that the Region’s vision, strategic plans, priorities and targets are developed through robust mechanisms, and in consultation with key stakeholders, and that they are clearly articulated and disseminated
  • continue to develop a medium term business and financial planning process to deliver strategic objectives, which is subject to regular review
  • when working in partnership:

- ensure that staff are clear about their roles and responsibilities both individually and collectively in relation to the partnership and to the Region

- ensure that there is clarity about the legal status of partnership

- ensure that representatives or organisations both understand and make clear to all other partners the extent of their authority to bind their organisation to partner decisions.

Core principle 3: promoting values for the Region and demonstrating the values of good governance through upholding high standards of conduct and behaviour

To achieve this we will:

  • ensure that the Region’s leadership sets a tone for the organisation by creating a climate of openness, support and respect
  • ensure that standards of conduct and personal behaviour expected of staff and stakeholders, of work between elected members, staff and stakeholders and the Region, its partners and the community are defined and communicated through codes of conduct and protocols
  • put in place arrangements to ensure that Staff and Stakeholders of the Region are not influenced by prejudice, bias or conflicts of interest in dealing with different stakeholders and put in place appropriate processes to ensure that they continue to operate in practice
  • develop and maintain shared values including leadership values both for the organisation and employees reflecting public expectations and communicate these with staff, partners and stakeholders
  • put in place arrangements to ensure that procedures and operations, including systems and processes for financial administration and financial control, are designed in conformity with appropriate regulations and ethical standards, and monitor their continuing effectiveness in practice
  • use the organisation’s shared values to act as a guide for decision making and as a basis for developing positive and trusting relationships with the Region
  • in pursuing the vision of regional working, agree a set of values against which decision making and actions can be judged. Such values must be demonstrated by partners’ behaviour both individually and collectively.

Core principle 4: Taking informed and transparent decisions which are subject to effective scrutiny and managing risk.

To achieve this we will:

  • develop and maintain an effective scrutiny function which encourages constructive challenge and enhances the Region’s performance overall and ensure an effective internal audit function is resourced and maintained
  • develop and maintain open, appropriate and effective mechanisms for documenting the basis for making decisions
  • put in place arrangements to safeguard against conflicts of interest on behalf of all staff and put in place appropriate processes to ensure that they continue to operate in practice
  • put in place effective transparent and accessible arrangements for dealing with complaints
  • ensure that those making decisions whether for the Region or for partnership are provided with information that is fit for purpose – relevant, accurate, timely and gives clear explanations of technical and financial issues and their implications including budgetary and financial information
  • ensure that proper professional advice on matters that have legal or financial implications is available and recorded well in advance of decision making and used appropriately
  • ensure that risk management is embedded in to the culture of the Region, with staff and stakeholders at all levels recognising that risk management is part of their job and that arrangements for financial and internal control and managing risk are addressed in governance reports
  • ensure that the Region puts in place effective internal financial controls covering codified guidance, budgetary systems, supervision, management review and monitoring, physical safeguards, segregation of duties, accounting procedures, information systems and authorisation and approval processes
  • ensure that effective arrangements for whistle blowing are in place to which employees and all those contracting with or appointed by the Region have access
  • actively recognise the limits of lawful activity placed on them by, for example the ultra vires doctrine but also strive to use their powers to the full benefit of the educational community
  • recognise the limits of lawful action and observe both the specific requirements of legislation and the general responsibilities placed on the Region by public law
  • observe all specific legislative requirements placed upon the Region, as well as the requirements of general law, and in particular to integrate the key principles of good administrative law – rationality, legality and natural justice into their procedures and decision making processes

Core principle 5: Developing the capacity and capability of Staff and Stakeholders to be effective

To achieve this we will:

  • provide induction programmes tailored to individual needs and opportunities for Members and Officers to update their knowledge on a regular basis
  • ensure that the Region’s key role holders have the skills, resources and support necessary to perform effectively in their roles and that these roles are properly understood and applied throughout the Region
  • develop skills on a continuing basis to enable roles to be carried out effectively, and to improve performance, including the ability to scrutinise and challenge and to recognise when outside expert advice is needed
  • ensure that effective arrangements are in place designed to encourage individuals from all sections of the community to engage with, contribute to and to participate as appropriate in the work of the Region
  • ensure that career structures are in place to encourage individual and collective development

Core principle 6: Engaging with local people and other stakeholders to ensure robust public accountability

To achieve this we will:

  • make clear to ourselves, all staff and stakeholders, who is accountable for what
  • consider those institutional stakeholders to whom they are accountable and assess the effectiveness of the relationships and any changes required
  • produce regularly reviewed work programmes to support the activity of the formal scrutiny function
  • ensure clear channels of communication are in place with all staff and stakeholders including monitoring arrangements and ensure that they operate effectively
  • ensure that arrangements are in place to enable the Region to engage with all stakeholders effectively recognising that different stakeholders may have different priorities
  • establish a clear policy on the types of issues they will meaningfully consult on or engage with service users including a feedback mechanism for those consultees to demonstrate what has changed as a result
  • on an annual basis, publish an appropriate performance plan giving information on the Region’s vision, strategy, plans and financial statements as well as information about its outcomes, achievements and the satisfaction of service users in the previous period
  • ensure that the Region as a whole is open and accessible to service users, stakeholders and staff and ensure that it has made a commitment to openness and transparency in all its dealings, including partnerships subject only to the need to preserve confidentiality in those specific circumstances where it is proper and appropriate to do so
  • develop and maintain a clear policy on how staff and their representatives are consulted and involved in decision making

Monitoring, Review and Reporting

The Region will undertake regular reviews of its governance arrangements to ensure compliance with the Code and the delivery of good governance through appropriate best practice frameworks. The purpose of the reviews will be to provide assurance that governance arrangements are adequate, compliant and operating effectively in practice and to identify gaps and any action required to ensure effective governance for the future.

There will be an annual review the outcome of which will take the form of an Annual Governance Statement (AGS) incorporating statements on the system of internal control. It will be submitted to the Joint Committee for agreement. Thereafter it will be published with the Statement of Accounts.

It is accepted that approval and ownership of the Governance Statement should be at corporate level and should be confirmed by the Managing Director and lead person from each of the Region’s Local Authorities jointly signing the statement on behalf of the Region.

The Joint Committee is the vehicle through which the statement will be endorsed on behalf of the six local authorities.

The Region will strive to establish a governance framework, embedded into its business processes, that links strategic objectives to risks, controls and assurances.

The principles set out in this Code are expected to be upheld by the Region’s stakeholders, partners and staff. There should thus be effective communication of this Code and the range of policies, systems and processes that form the governance framework.

February 2015