Contact: Jeff Pattison, 01962 847321, e-mail [email protected]

Ejner Knudsen, 01962 847403, e-mail [email protected]

1 Summary

1.1 This report invites the committee to consider the potential scope of its work in developing the corporate governance framework for eventual adoption by the Authority. A workplan was outlined originally in the attached report presented to its meeting on 26 May 2004, particularly in paragraph 4.2, and members are asked to review those proposals.

2 Issues for consideration

2.1 There is a problem due to the establishment of the new committee arrangements taking longer than anticipated which will make it difficult to complete both phases before the end of this financial year.

2.2 It is proposed to concentrate on phase 1 with the aims to define the existing framework of corporate governance, assess against recommended best practice to identify any major gaps, and then to draft the local code of corporate governance itself.

2.3 The Authority is expected to undergo the first Comprehensive Performance Assessment early in 2005, including a review of progress by the Audit Commission.

2.4 The process of internally reviewing management compliance with the code could commence as soon as possible in phase 2, and some of the analysis may be included as part of the Assurance Statement due to be compiled next year for publication with the final accounts.

2.5 The frequency of Governance Committee meetings needs to be determined according to the wishes of members but it is suggested that during the first year when there is more intensive activity they should be scheduled on a quarterly basis before reverting to the demands of perhaps half yearly progress reports.

3 Resource requirements

3.1 It will be the responsibility of senior management to maintain the final framework and therefore it is also desirable that their involvement in the development process is secured from the outset. Unfortunately it is inevitable that many other pressures will compete for their attention over the next six months including the financial and operational plans for the new year and so the phased approach is felt to be more realistic.

3.2 Support from the Clerk and Treasurer is expected to draw on practice developed elsewhere in other public sectors which may also reduce the total resources required.

3.3 Members are also asked to consider whether they are content for this process to continue at officer level or wish to be involved with some of the working group meetings.

Recommendations

It is recommended that the committee:

1 Approve the approach to delivering phase 1 of the outline workplan

2 Agree to the scheduling of meetings on a quarterly basis to deal with the expected workload for the first year.