Archived decisions

Hampshire Fire and Rescue Authority Item 5

Governance Committee

8 March 2005

Corporate Governance Policy

Report by the Chief Officer

Contact: David Howells, Director of Corporate Services. Tel. 023 8062 6833

Summary

While the Authority has in place a number of robust corporate governance practices and supporting documents, it has not formally adopted an overarching Code of Corporate Governance. This report recommends the adoption of such a code and this is set out as Appendix 1. The intention is that the Code will be published on our website together with a series of compliance statements that will be maintained as a `living document' and presented annually for review by the Committee.

Recommendations

1. That it be a recommendation to the Authority that the Code of Corporate Governance [set out as Appendix 1 to this report] be approved.

2. That compliance with the Code of Corporate Governance be reviewed annually by the Governance Committee.

Introduction

The term `corporate governance' refers to the system by which the Authority directs and controls its functions and how it relates to the community it serves. It represents the totality of the policies, systems, procedures and structures that together determine and control the way in which the Authority manages its business, determines its strategies and objectives and sets about delivering its services to meet those objectives for the greater good of the communities of Hampshire.

Contribution to corporate aims and objectives

While all our corporate aims seek to deliver services for the greater good of Hampshire communities it is essential that these - and their related objectives and activities - are underpinned by a commitment to a robust system of corporate governance.

We aim to be one of the top-performing fire and rescue services in the country so our decision-making processes must also be based on, and supported by, recognised good governance practices and procedures.

Code of Corporate Governance

The proposed Code of Corporate Governance is set out as Appendix 1 to this report and the Committee is asked to endorse it and recommend its adoption at the next meeting of the Authority on 1 June 2005.

The Code will formalise and affirm commitment to the many good governance practices that the Authority has pursued and practiced since it was first set up in 1997. It will also provide a `good practice' checklist that will both assist the Authority in developing further its related governance policies and practices; and provide the basis against which compliance with good practice can be reviewed and assessed.

The Code is consistent with the values adopted by the Authority and emphasises the commitment to:

· service to the community

· people

· diversity

· improvement

In addition, the Code is firmly based on the key principles of:

· openness and inclusivity

· integrity

· accountability

The Code is based on the CIPFA/SOLACE guidance and sets out the ways in which the principles of corporate governance should be reflected under five headings:

· Community focus

    To maintain a community focus by working both for and with communities in an open and effective manner, taking account of the views of all our stakeholders, regularly reporting on our activities, performance and financial position, and maintaining the highest standards of integrity.

· Service delivery

    To ensure that service delivery arrangements secure the continuous improvement of services and that agreed policies, priorities and decisions are implemented on time and in a manner consistent with the needs of users in the most cost-effective way.

· Management structures and processes

    To maintain effective political and managerial structures and processes to govern decision-making, ensure the strategic management of the Authority, clarify member and officer roles and responsibilities and ensure proper scrutiny of all aspects of performance and effectiveness.

· Risk management and internal control

    To exercise the highest standards of care and control over the assets and resources available, ensuring that these are protected from the risk of loss, damage or misuse, are used in the most cost-effective way and deliver services in a way that represents best value for stakeholders.

· Standards and conduct

    To ensure that the highest standards of professionalism and integrity are maintained and that all those associated with the Authority demonstrate leadership and public service commitment in conducting the affairs of the Authority in an open and accountable manner.

Risk analysis

The Code includes a specific section on `risk management and internal control' and there are seven actions setting out how the Authority will demonstrate its commitment to putting in place robust arrangements for the management of risk. The Committee will also be aware that, at its meeting on 9 February 2005, the Authority approved a Risk Management Policy and Strategy together with a Strategic Risk Register.

The Code therefore provides the overarching governance context for the Authority's Risk Management Policy and Strategy; but more importantly it also complements the strategy by setting out a number of specific actions that with will help to control and mitigate risk.

Without a Code of Governance in place, the Authority is vulnerable to criticisms from stakeholders that it does not openly and formally express its undoubted commitment to the principles of good governance practices. By reviewing - at least annually - the Authority's record of compliance with the Code it will be able to demonstrate and evidence its commitment and significantly reduce the potential risk to its reputation.

Resource implications

Developing the Code has been undertaken within existing resources. Once approved there is a commitment to reviewing the Authority's compliance with it. It is envisaged this review process can be undertaken in a cost-effective way by creating - on the public website - a `living document' setting out progress against each of the actions set out in the code.

The cost of developing appropriate pages on the website will be met from within existing resources. There will be some impact on senior managers' time - particularly during the first year when the compliance review document has to be developed for the first time.

Equality impact assessment

The Code will help to underpin the Authority's commitment to equality and diversity. The Section on `Community Focus' places great value on seeking and incorporating the views and opinions of the public and other stakeholders, both in helping to determine our priorities and in seeking joint working arrangements with other organisations. It gives commitment to work with local communities in an open and effective manner and that means valuing the diversity and different needs of stakeholder groups within those communities.

The proposals within this report are considered compatible with the provisions of the European Convention on Human Rights, the Human Resources Act 1998, and the Race Relations (Amendment Act 2000).

Consultation

The Code has been developed in a way that is consistent with the good practice guidance issued jointly by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE). Although the format and publication of codes of governance varies across local authorities most follow the general principles set out in the CIPFA & SOLACE guidance.

When the first formal review of compliance with the Code is drafted for consideration by the Committee, the opportunity will be taken to consult with appropriate stakeholders (including trades unions representatives) to determine whether the statements are consistent with their understanding and perception of compliance.

Conclusion

For the Authority to be able to demonstrate its commitment to the principles of good practice in its governance arrangements, it is essential that the Authority formally adopts a Code of Corporate Governance. The proposed Code is based on current good practice and, if approved, it is strongly recommended that compliance with it is reviewed at least annually by the Governance Committee.

Background information (Section 100D of the Local Government Act 1972)

The following documents disclose the facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of the report:

This excludes: published works and documents that disclose exempt or confidential information defined in the Act.

Groups/Secretarial/WP/Word/Corporate/Events HFRA Governance 8 3 05 Corporate Policy DH/JMW/21 2 2005

Appendix 1 - HFRA Code of Corporate Governance