Contact: Deborah Harkin, 01962 846530, [email protected]

1. Introductory Summary

1.1 This report seeks approval of a working model of governance for Hampshire's children's centres. It is likely that the model will need to be reviewed in the light of continuing experience and further central Government development.

1.2 The knowledge gained from "phase one" demonstrates that Hampshire County Council requires an approach to governance of children's centres modelled on the successful national SureStart Local Programme's Governance arrangements. These provide a model that is both robust (in terms of accountability to the local authority) and flexible to community needs.

1.3 The combination of services that children's centres provide for young children and families support all three of the County Council's corporate aims and contribute to the Every Child Matters outcomes by:

· Improving health outcomes for children and families through links with local Child Health Promotion Programmes;

· Reducing crime rates through partnership links with community Police;

· Reducing child poverty through helping lone parents to access work and training opportunities;

· Enabling parents to study and work through the delivery of structured parenting and family learning programmes.

Through the County Council's strategic lead in the planning and implementing of children's centres, services can be joined up through partnership working between statutory and voluntary agencies. This brings benefits in improved planning and commissioning of services to make the best use of resources.

2. Recommendations

a) That the Executive Lead Member for Children's Services approves the model, as set out in Appendix 1, as an interim working model for the governance of children's centres in Hampshire.

b) That the Executive Lead Member for Children's Services authorises the Director of Children's Services, in consultation with the Executive Lead Member, to make appointments to the Partnership Boards of children's centres.

c) That the Executive Lead Member for Children's Services delegates to the Director of Children's Services authority to remove members from Partnership Boards as provided for in paragraph 7.2.3 of the working model.

3 Background

3.1 Children's centres are at the heart of the Government's Every Child Matters: Change for Children Programme. They are a key vehicle for improving outcomes for children. They provide an exciting and revolutionary opportunity for services to join together to make a real difference for young children and their families.

3.2 This report builds on the report of 15 December 2006 which asked the Executive Member to note progress on the delivery of children's centres in Hampshire.

4 Governance of children's centres in Hampshire

4.1 Phase 2 of the children's centre project has involved a number of steps to establish a consistent and robust countywide model of governance for children's centres. A consultation exercise has recently been completed, including where possible prospective statutory partners, which has informed the development of a working model of governance. Approval to adopt the working model of governance for children's centres is now requested.

4.2 The following summarises the underlying principles of the working model of governance:

· The County Council would expect all children's centres to operate with a centre manager working with a Partnership Board. The Partnership Board should be informed both by a Parents' Forum and a Practitioners' Forum. Where there are a number of small children's centres, these forums may represent several centres serving a wider community. The Parent's Forum should enable the voice of centre users to be heard and will elect at least one member of the Partnership Board. The purpose of the Practitioners' Forum is to represent the views of the range of people delivering services through the centre and will elect at least one member of the Partnership Board.

· For County Council managed centres, accountability for the work of the centre and its outcomes will be through the Centre Manager working with the Partnership Board. The Centre Manager will be line-managed through a professional support and performance management system overseen by an appointed senior officer within Children's Centre Services (CCS).

· For school managed centres, the County Council will contract with the school's governing body through a Service Level Agreement, recognising the governing body's extended schools powers (i.e. its powers under the Education Act 2002 ) to enter into arrangements or agreements with other bodies to provide community services. Contractual responsibility for the work of the centre and its outcomes will be with the school's governing body, working with the Partnership Board. The Centre Manager will report through, but not be line managed by the same professional support system as in County Council managed centres.

· In other third-party managed centres, contractual responsibility for the work of the centre and its outcomes will be with the third-party working with the Partnership Board. The Centre Manager will report through, but not be line managed by the same professional support system as in County Council managed centres.

· Where children's centres are developed within Maintained Nursery Schools, those schools will be required to have regard to this model and to act in accordance with its principles. Further clarification on the position of maintained nursery schools, designated as children's centres, is awaited from central Government.

4.3 The draft policy paper and supporting consultation documentation for the governance of children's centres in Hampshire were sent to partners on 9 November 2006 with responses due by 9 February 2007.

4.4 The following organisations were invited to comment on the proposed model of governance:

· Health Authorities

· Schools

· District Councils

· Hampshire County Council officers

· parents via Hampshire Children & Families Forum (HCFF)

· existing children's centres/early years centres

· private, voluntary and independent organisations (PVIs).

Main responses to consultation

4.5 Out of the 1,126 known consultation packages distributed, 43 responded (3.82%) to the consultation (Appendix 2). 33 responses (76.74%) considered that the governance document clearly defined the difference between governance and management, with 32 (74.42%) responses agreeing with the overall approach to governance, as set out in the consultation document.

4.6 As part of the process of identifying appropriate structures for children's centres, the consultation exercise also asked for expressions of interest for the role of co-ordination in the management of a children's centre. 16 (37.21%) of the organisations who responded stated that they may be interested in the role.

Additional comments

4.7 Additional comments were also received from consultees as part of the consultation process (including face-to-face meetings). Responses included feedback surrounding the style of the draft policy, with comments that the proposals were too prescriptive and overly focused on County Council managed centres. Clarification was sought on how third-party organisations could be involved, with recommendations to strengthen sections relating to third-parties in the final policy. These comments have been taken into consideration and used to inform the working model of governance for which approval is now being requested.

5 Other options considered and rejected

5.1 Two other options were considered:

5.1.1 Delegation of financial and personnel functions to Partnership Boards - The draft model for governance sought to take advantage of the knowledge and experience that had been obtained through the development of school governing bodies and SureStart Local Programmes. The model proposed the formation of a Partnership Board which would be given delegated financial and personnel powers. Since then, the County Council's Legal Practice has advised that this option is not a suitable model to be taken forward. The reasons are outlined in the guidance provided within the DfES discussion paper - `The Governance & Management of Extended Schools and Sure Start Children's Centres' (2006). The paper states that "partnership/advisory boards have no legal status, cannot hold a budget or enter into contracts or legal arrangements and cannot be held legally liable should things go wrong".

Therefore, an alternative arrangement for governance is proposed, providing three options of management. The options are detailed in section 4.2 above.

5.1.2 Expansion of school's governing body remit to include children's centre - Consideration was given to the practicalities of expanding the school governing body's role when a children's centre was co-located with a school. The DfES discussion paper, highlighted under 5.1.1 above, makes it clear that an existing governing body cannot expand its remit to include the governance of a children's centre. The paper states that "the governing body cannot take on the formal role of that board [children's centre partnership board], as this would be outside its statutory powers".

In addition, the process of consultation and discussion raised further issues in relation to extending existing school governance arrangements. The community served by a school may not be coterminous with that which a children's centre will need to reach. It was felt that the Partnership Board arrangements gave better expression to the need to be representative of the community interest of more schools and communities than solely that served by the school on whose site a centre is established.

Furthermore, the legal status of a governing body as an incorporated body with powers delegated by statute, gives it powers and duties in relation to the conduct of the school and its personnel and financial functions. A governing body is the responsible body. The Partnership Board does not have this status and the dangers of confusion about accountability arising for governors and officers was considered a risk best avoided.

Although school governing bodies cannot extend their existing remit to include governance of children's centres, an alternative arrangement is being proposed that will allow the involvement of schools in the management of children's centres, through use of its extended schools powers (detailed in 4.2 above).

6 Legal implications

6.1 In accordance with the Childcare Act 2006 (the relevant provisions yet to be enacted), the County Council will be required to make arrangements to secure that early childhood services in the Council's administrative area are provided in an integrated manner which is calculated to facilitate access to those services, and to maximise the benefit of those services, to parents, prospective parents and young children. In doing this, the County Council will be required to take all reasonable steps to encourage and facilitate the involvement of interested parties in the making and implementation of these arrangements.

In the performance of its statutory duty, the County Council will be required to work with its statutory partners, being the Primary Care Trust and the Secretary of State for Employment.

7 Financial implications

7.1 The necessary financial accountability to the County Council, whilst allowing local flexibility, will be achieved by obtaining business unit status for the children's centres collectively. This requires an appropriate application under paragraph 5.10 of Financial Regulation D of Section E of Part 3 of the Constitution of Hampshire County Council to be submitted and approved.

7.2 Costs of adapting the `Governor Manager' database system to support this model will be incurred. This database was created for storing the details of school governors and is used by Governor Services in supporting the governance of schools. The `Governor Manager' package can be adapted to support children's centres partnership board details. The cost of making adaptations has been supported through the 2006/2007 financial year main revenue budget for children's centres. Ongoing support and maintenance costs will continue to be met through this funding stream.

8 Personnel implications

8.1 All County Council managed centres will be required to follow Hampshire County Council's personnel procedures e.g. Individual Performance Planning (IPP) and induction. Third-party managed centres will be required to demonstrate that they have appropriate policies and procedures in place for personnel issues.

8.2 In County Council managed centres, centre managers will be line-managed through a professional support and performance management system overseen by an appointed senior officer within CCS. Centre managers of third-party managed centres will be required to report through, but not be line managed by, the same professional support system as in County Council managed centres.

9 Impact assessment

9.1 In the application of the working model of governance, the proposal for the Parents' Forum is intended to create an environment in which parents of all ethnic and social backgrounds, will feel comfortable in participating. In addition, as recruitment to the Partnership Boards takes place, every effort will be made to ensure that Boards are fully representative of the communities served by the children's centre.

10 Crime prevention issues

10.1 The Police are represented on the Extended Schools and Children's Centres Stakeholder groups. The working model of governance has no direct impact on crime prevention issues.

11 Views of the Local County Councillor

11.1 Although consultation was not carried out with all local county councillors, as part of the broader consultation process, a County Councillor responded and their views were incorporated into the proposed working model of governance.

Section 100 D - Local Government Act 1972 - background documents

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

NB: the list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.

None

Appendix 1

Governance of Children's Centres in Hampshire - Proposed Working Model

Background

`Research to inform the Management and Governance of Children's Centres' (SureStart 2006) distinguishes between governance and management. Governance is ``to ensure that an organisation or partnership fulfils its overall purpose, achieves its intended outcomes for citizens and service users, and operates in an effective, efficient, and ethical manner''. Management ``is concerned with co-ordinating service delivery, Human Resources and budgeting to ensure that services are delivered to the best possible outcome for end users and the wider community''. Management of centres will be detailed through the use of a service level agreement and performance management arrangements. This paper is primarily concerned with governance.

Successful governance arrangements should be:

· Responsive to community needs

· Clear about functions and roles

· Robust and sustainable to ensure quality of service provision

· Engaged with parents through representation on the management group and/or a parent forum

· Involved with the wider community

· Structured to promote partnership working

Hampshire Context

In Hampshire, a variety of approaches to governance (and management) arose during Phase 1 of the implementation of children's centres, some of which proved to be problematic. There was recognition that corporately Hampshire needed to learn from this experience, and move existing centres to a single or at least agreed finite range of effective governance arrangements. Within all Hampshire's children's centres, the County Council have focused on ensuring a robust accountability for the governance of all aspects of management, including:

· Finance

· Health and safety

· Human resource management

· Local partnership working

· Outcomes for children

1. Working Model of Governance

The underlying principles of the working model of governance are as follows:

· The County Council would expect all children's centres to operate with a centre manager working with a Partnership Board. The Partnership Board should be informed both by a Parents' Forum and a Practitioners' Forum. Where there are a number of small children's centres, these forums may represent several centres serving a wider community. The Parents' Forum should enable the voice of centre users to be heard and will elect at least one member of the Partnership Board. The purpose of the Practitioners' Forum is to represent the views of the range of people delivering services through the centre and will elect at least one member of the Partnership Board.

· For County Council managed centres, accountability for the work of the centre and its outcomes will be through the Centre Manager working with the Partnership Board. The Centre Manager will be line-managed through a professional support and performance management system overseen by an appointed senior officer within the County Council.

· For school managed centres, the County Council will contract with the school's governing body through a Service Level Agreement (SLA), recognising the governing body's extended schools powers (i.e. its powers under the Education Act 2002 ) to enter into arrangements or agreements with other bodies to provide community services. Contractual responsibility for the work of the centre and its outcomes will be with the school's governing body, working with the Partnership Board. The Centre Manager will report through, but not be line managed by the same professional support system as in County Council managed centres.

· In other third-party managed centres, contractual responsibility for the work of the centre and its outcomes will be with the third-party working with the Partnership Board. The Centre Manager will report through, but not be line managed by the same professional support system as in County Council managed centres.

· Where children's centres are developed within Maintained Nursery Schools, those schools will be required to have regard to this model and to act in accordance with its principles. Further clarification on the position of maintained nursery schools, designated as children's centres, is awaited from central Government.

2. Financial and Personnel Management

The Scheme of Financial and Personnel Management for Children's Centres (due April 2007) will provide further detail on the following areas:

Financial Management

The necessary financial accountability to the County Council, whilst allowing local flexibility, will be achieved by obtaining business unit status for the children's centres collectively, to be known as Children's Centre Services (CCS). Accordingly the following principles for devolved financial management to the Children's Centre Services' business unit are proposed:

· The initial application for business unit status and the subsequent annual business plans, in respect of the children's centres collectively, will set the overall financial plan within which individual centres will operate;

· Each County Council managed centre is an operational unit within an overall business unit encompassing them collectively;

· Third-party managed centres will receive funding via the CCS under contractual arrangements.

The County Council has chosen to distribute funds among the centres in accordance with a formula, which takes account of the size and type of each centre, and which takes account of other factors deemed relevant, including any brought forward balance.

In County Council managed centres, the Centre Managers will have devolved financial management responsibility for all the revenue funds of the children's centre, including income from: the County Council, government grants, charges to users, sales, other grants, and payments from other bodies. The Centre Manager, working with the Partnership Board, will determine spending priorities, including related decisions on the appointment of staff and the use of premises. In doing so they will operate within the CCS' strategic plan and annual objectives.

Within the context of the overall business unit and County Council decisions as to the levels of business unit balances, each Children's Centre Manager and the Partnership Board, working together, should have the incentive to plan future spending to meet longer-term needs and objectives, by retaining unspent balances for specific purposes and the amounts should not be excessive.

CCS will develop a policy for fees and charges at children's centres which will recognise the need for flexibility and address the specific issues that might be faced by third-party managed centres. Centre managers will work with Partnership Boards to agree fees and charges that will comply with this policy.

The Centre Manager is responsible for planning, revising and monitoring the budget and must report to the Partnership Board at least quarterly. Budget deficits will not be allowed and any suggestion of a budget deficit developing in year must be reported to CCS immediately.

Children's centres must use an approved financial system, to account properly for all their funds, and keep sufficient financial records to satisfy the County Council's requirements. The County Council managed centres will be required to use `SAP'. Third-party managed centres will need to have sound financial systems that are approved by, and meet the County Council's reporting requirements.

The County Council remains the accountable body for all contracts and formal legal agreements for County Council managed centres and for services delivered by third-parties, including schools, through SLAs.

Capital

Capital expenditure is the responsibility of the County Council. The use of children's centre balances for capital expenditure requires the specific consent of the County Council.

Support Services

The County Council managed centres will obtain their support services, such as human resources, ICT, finance from County Council specialist support teams and business units under the terms of an internal SLA.

Third-party providers will make arrangements for the management of funds which takes account of the principle of local decision making and the County Council's responsibility for equality of access throughout the county.

Third-party providers will be allocated funding for support services for children's centres as part of their SLA and they will be required to demonstrate how the necessary support will be provided. Depending on the third-party, it may be possible for them to buy-back from County Council specialist support services.

3 Health and Safety

All County Council managed children's centres will be required to operate in accordance with the County Council's health and safety and safeguarding children policies and procedures. Third-party providers may choose to adopt the County Council's health and safety and safeguarding children arrangements, or would be required to satisfy the County Council that its own policies and procedures for these areas were comparable to the County Council's.

The Centre Manager will report regularly to the Partnership Board on these issues and to the County Council as required. Children's centres are expected to be a resource used by a wide section of the community. Adults will be using the same or proximal resources as young and potentially vulnerable children. Where centres are on school or third-party sites, close liaison with the school's governing body or third-party site's management arrangements will be necessary to ensure safety, particularly of children across the site. For County Council managed centres, an identified officer will be available to offer general advice and specialist services will be available from health and safety advisors and the Safeguarding Unit of the Children's Services Department.

4 Human Resource Management

County Council managed centres

In County Council managed children's centres, all human resource matters will be conducted in accordance with the County Council's relevant policies and procedures. Centre Managers will be appointed by the County Council, working, where possible, with representatives of Partnership Boards.

Performance management of the Centre Manager will be carried out in accordance with the County Council's Individual Performance Planning (IPP) arrangements and undertaken with the involvement of at least two representatives of the Partnership Board.

Centre Managers will agree with Partnership Boards, the staffing establishment of the centre on an annual basis and exercise devolved powers of appointment. CCS may be represented whenever it considers advisable.

Centre Managers, working with the Partnership Board, will be responsible to the County Council for the appointment, induction, performance review, professional development, grievance, discipline and competence of County Council staff at the centre. The County Council may be represented whenever it considers advisable.

County Council managed children's centres will receive professional support on all

human resource matters, from specialist advisers, under the terms of an internal SLA.

Third-party managed centres

Third-party providers will be required to operate in accordance with the principles of local decision making and fair and equal treatment of staff and to show that its policies and procedures for human resource management comply with national expectations and best practice. The County Council will provide a representative for appointments in third-party centres, where appropriate and if requested. Third-party providers will be allocated funding for the provision of human resources support to children's centres as part of their SLA and they will be required to demonstrate how the necessary support will be provided. Depending on the third-party, it may be possible for them to buy-back from County Council specialist support services.

5 Local Partnership Working

Accountability for local partnerships with the community and voluntary sector, health professionals, children's services (including extended services around schools) and the Police, sits with the Centre Manager who will report regularly to the Partnership Board and the County Council.

6 Outcomes for Children

Performance indicators have been set nationally for children's centres that are based on the five outcomes for children as defined in Every Child Matters. Each children's centre will be required to produce, implement, and evaluate its own development plan to achieve these outcomes, informed by county, district, and local priorities and supported by appropriate specialist county staff.

Monitoring centres' plans will be supported by the local Development Officer from within the Early Education and Childcare Unit, reporting to the appointed senior officer within CCS. The County Council has the responsibility to intervene if any centre is shown to be underperforming.

Third-party providers will be required to work with County Council monitoring mechanisms to assure quality outcomes for children and to meet agreed reporting requirements. Where centres are underperforming the County Council will put appropriate support and monitoring in place with the third-party. If improvement is not demonstrated within the specified period, actions will be taken in accordance with the SLA.

7 Constitutional Considerations

All children's centres are expected to have a Children's Centre Partnership Board that represents users and the interests of other local stakeholders. Training and support mechanisms are being developed for centre staff and children's centres' Partnership Boards. More detailed considerations regarding the role of Partnership Boards are listed under section 7.1.

7.1 The responsibilities of Centre Managers working with Partnership Boards

7.1.1 The Centre Manager should report to the Partnership Board regarding internal organization and management, and together they should take overall responsibility for the development, delivery and continuous improvement of high quality services that impact on the lives of local families and improve outcomes, as defined in Every Child Matters.

7.1.2 To ensure services are delivered, monitored, and evaluated and work

objectives are achieved, in line with implementation and development plans.

Support and advice to be accessed, as necessary.

7.1.3 To develop and recommend to CCS annual spending and development plans.

7.1.4 To ensure work with parents, children, members of the local community

and other stakeholders reflects ongoing evidence of local need. This will

include regular consultation exercises designed to reach all sections of the

community followed by clear planning and action.

7.1.5 To ensure that health and safety and safeguarding procedures are in

place across all areas of service delivery that meet the requirements of the County Council and Ofsted.

7.1.6 To work within the plans of the District 0-19 Group in the development

of district delivery plans and partnership work.

7.1.7 To ensure that formal complaints are dealt with in accordance with the Children's Centres Complaints Procedure and agree any actions in response to complaints.

7.1.8 To ensure effective financial management systems are in place that meet the DfES and the County Council's financial requirements for children's centres as set out in the Scheme of Financial and Personnel Management for children's centres.

7.1.9 To ensure effective working relationships are developed with other

initiatives to ensure integrated delivery of services in the local community and

best use of resources.

7.1.10 To ensure there are clear lines of communication with the Parents'

Forum and Practitioners' Forum.

7.1.11 To carry out the above responsibilities in an open and transparent

manner and in accordance with the Nolan Principles of Public Life and to

show respect for colleagues, staff, families and other stakeholders.

7.1.12 To provide data and reports to the County Council on request.

In addition, where the children's centre is on a school or third-party site:

7.1.13 To ensure there is an effective working relationship and systems to clarify roles and responsibilities with the school and its governing body or the third-party site's management arrangements.

7.2 Constitutional Details

7.2.1 Size

Between 6 - 15 members, to be determined in the first instance by the Council County working with its partners e.g. site owner, third party provider. Thereafter, to be agreed by the County Council, in consultation with the Partnership Board.

7.2.2 Membership

Should represent a 33% split between:

- parent/carers

- providers/partners

- voluntary/community

At least one:

· representative from the parents, elected by the Parents' Forum

· representative from the practitioners, elected by the Practitioners' Forum

· representative nominated by the local county councillor

· school governing body representative (from nearby schools)

· third-party representative (where the centre is managed by a third-party, including schools)

· site representative (if appropriate)

· voluntary/community representative (co-opted by the other members of the Partnership Board).

· representative appointed by Director of Children's Services

The initial appointments to the Partnership Board will be made by the County Council. Thereafter, appointments will be made by the County Council, acting on the nomination by the Partnership Board. The County Council reserves the right to refuse to appoint nominees about whom it has concerns.

All Partnership Board appointments are made under delegated powers by the Director of Children's Services in consultation with the Executive Lead Member for Children's Services.

It is proposed that membership records will be maintained by an adaptation of the existing system used to record membership of school governing bodies.

7.2.3 Term of office

To be determined by the Partnership Board, but no more than 4 years. Members can be appointed or elected for further terms of office. In cases of misconduct where the Partnership Board considers removal from office is necessary, it would make a recommendation to the Director of Children's Services. The Director of Children's services shall have delegated power to remove members from the Partnership Board in these circumstances. There will be the right to appeal this decision to a panel of elected members convened by the Executive Lead Member for Children's Services.

7.2.4 Vetting

Criminal Records Bureau (CRB) checks are carried out on all members of the Partnership Board in line with central government advice.

7.2.5 Chairman

To be elected by the Partnership Board but must not be a member of centre staff or a provider. Term of office to be determined by the Partnership Board, but no more than 2 years. Individuals may be re-elected for further terms as Chairman.

7.2.6 Frequency of meetings

To be determined by the Partnership Board, but at least quarterly.

7.2.7 Sub committees

Partnership Boards may set up one or more committees. Such committees must be reviewed annually. Committees must:

· be administered in accordance with the requirements of the Partnership Board as a whole

· consist of a minimum of three members

· have terms of reference

· report their meetings and actions to the Partnership Board at the next meeting

· be professionally advised by the Centre Manager or a nominee.

7.2.8 Clerk to the Partnership Board

Appointed by the County Council , based on a recommendation from the Children's Centre Manager and Partnership Board, but must not be the Centre Manager or a member of the Board.

7.2.9 Meeting administration

Agendas, papers, reports, minutes being considered by the Children's Centre Partnership Board should be supplied to all members of the Board five days prior to, and 10 days following the meeting in question. Officers of the County Council have a right to convene or attend any meeting of a Partnership Board on request from CCS.