Archived decisions
Appendix A
The Code of Corporate Governance for Hampshire County Council
1 Introduction
1.1 Hampshire County Council recognises that good governance arrangements are essential to ensure the County Council continues to be a leading force in the community, through the identification of needs and determining priorities to deliver the best outcomes for its citizens. The County Council has an ongoing commitment to maintaining high standards through its framework of corporate governance. The `framework' is the collective term for the mechanisms in place by which the County Council is directed, managed and controlled to achieve its aims and objectives.
2 Purpose of the Code of Corporate Governance
2.1 The Code of Corporate Governance for Hampshire County Council (the Code) explains how the County Council ensures compliance with statutory requirements and best practice guidance on corporate governance. Best practice guidance is specified in the Chartered Institute of Public Finance and Accountancy/Society of Local Authority Chief Executives (CIPFA/SOLACE) document entitled "Delivering Good Governance in Local Government". This is an update of the previously published document "A Keystone for Community Governance".
2.2 The County Council's governance framework ensures it is doing the right things, in the right way, for the right people in a timely, inclusive, open, honest and accountable manner. It comprises a large number of systems and processes, embedded across the whole organisation, that along with its cultures and values, determine how the County Council is direct and controlled. These are identified in the body of this Code.
2.3 The County Council is committed to:
· engaging in effective partnerships and providing leadership for and with the community
· ensuring the delivery of high-quality services whether directly or in partnership or by commissioning
· performing a stewardship role which protects the interests of local people and makes the best use of resources
· developing citizenship to encourage individuals to play a part in the development of their communities.
2.4 The Monitoring Officer is responsible for conducting an annual review of compliance with the Code and of the system of internal audit. The conclusions are reported in the draft annual governance statement to the Governance Committee. The Chief Internal Auditor supports the review of the governance arrangements in place through independent audit work and the findings are reported to the Monitoring Officer and Governance Committee.
2.5 The Governance Committee is responsible for the approval and regular review of the Code and will receive reports, throughout the year, on all the sources of assurance, as summarised in Appendix C.
2.6 In addition, the Governance Committee is responsible for receiving and approving the draft annual governance statement prepared by the Monitoring Officer, prior to signature by to the Leader of the County Council and the Chief Executive for publication with the annual accounts.
2.7 The Leader of the County Council and the Chief Executive are jointly responsible for providing an annual governance statement, giving assurance on the effectiveness of the governance arrangements in operation and identifying any areas for improvement. Further clarification of the annual assurance process is given in the Code below.
3 The principles of good Governance
3.1 The County Council has adopted the six core principles and supporting principles of the CIPFA/SOLACE framework. The core governance principles of the County Council are:
· focusing on the purpose of the County Council and on the outcomes for the community and creating and implementing a vision for the County
· members and officers working together to achieve a common purpose with clearly defined functions and roles
· promoting values for the County Council and demonstrating the values of good governance through upholding high standards of conduct and behaviour
· taking informed and transparent decisions which are subject to effective scrutiny and managing risk
· developing the capacity and capability of members and officers to be effective
· engaging with local people and other stakeholders to ensure robust public accountability.
4 Compliance with the Core and Supporting Principles
4.1 The six tables below, one for each of the core governance principles, list the CIPFA/SOLACE supporting principles and narrative on the arrangements in place, which demonstrate compliance by the County Council. A summary of the sources of evidence that provide assurance that these arrangements are operating in practice, is appended at Appendix B.
Focusing on the purpose of the County Council and on the outcomes for the community and creating and implementing a vision for the County.
4.2 The County Council has a clear vision of its purpose and intended outcomes for citizens and service users, published in the Corporate Business Plan. The priorities are: making Hampshire safer and more secure for all; maximising wellbeing and enhancing our quality of place by removing barriers to opportunities and improving choice to all; responding to the improvements that people say they want; planning for and investing in the future and encouraging partnership, participation and contribution. This vision for the community is central to all governance activity, that is, to ensure these outcomes are achieved in an effective, efficient, economic and ethical manner.
Supporting principles |
To ensure these principles are adhered to the County Council has the following in place: (note 1) |
Exercising strategic leadership by developing and clearly communicating the County Council's purpose and vision and its intended outcome for citizens and service users. |
The County Council has developed and published a clear purpose and vision. Regular reviews of the vision and its implication for governance arrangements. Partnerships are underpinned by a common vision that is understood and agreed by all partners. Annual reports are published on a timely basis to communicate the County Council's activities and achievements as well as its financial position and performance. |
Ensuring that users receive a high quality of service whether directly, or in partnership, or by commissioning. |
The County Council has clear processes in place to measure and regularly review the quality of service for users. Effective arrangements are in place to identify and deal with failure in service delivery. |
Ensuring that the County Council makes best use of resources and that tax payers and service users receive excellent value for money. |
The County Council has a value for money strategy in place and arrangements for ensuring that value for money and performance is regularly reviewed. The environmental impact of policy, plans and decisions is considered |
Note1 The source documents or other means to demonstrate compliance are listed in Appendix B.
Members and officers working together to achieve a common purpose with clearly defined functions and roles.
4.3 The respective roles and responsibilities of Executive Members and Senior Officers is well documented in the Constitution, role profiles, protocols and schemes of delegation. The Corporate Business Plan is endorsed by Full Council following consultation with stakeholders, service users and citizens, to achieve a common purpose.
Supporting principles. |
To ensure these principles are adhered to the County Council has the following in place: (note 1) |
Ensuring effective leadership throughout the County Council and being clear about executive and non-executive functions and the roles and responsibilities of the scrutiny function. |
A clear statement of the respective responsibilities of the executive and of the executive's members individually and the County Council's approach towards putting this into practice. A clear statement of the respective roles and responsibilities of other County Council members, members generally and of senior officers. |
Ensuring that a constructive working relationship exists between County Council members and officers and that responsibilities of members and officers are carried out to a high standard. |
A scheme of delegations and reserve powers within the constitution, including a formal schedule of those matters specifically reserved for collective decision of the County Council, taking account of the relevant legislation. The scheme of delegation is monitored and updated when required. The Chief Executive is responsible and accountable to the County Council for all aspects of operational management. Protocols are in place to ensure that the Leader and Chief Executive negotiate their respective roles early in the relationship and that a shared understanding of roles and objectives in maintained. The County Treasurer, as Section 151 Officer, is responsible to the County Council for ensuring that appropriate advice is given on all financial matters, for keeping proper financial records and accounts, and maintaining an effective system of internal control. The monitoring Officer is responsible to the County Council for ensuring that agreed procedures are followed and that all applicable statutes and regulations are complied with. |
Ensuring relationships between the County Council, its partners and the public are clear so that each knows what is expected of the other. |
Communication protocols are in place to ensure effective communication between members and officers in their respective roles. There are clear terms and conditions for remuneration for members and officers and an effective structure for managing the process, including the Employment in Hampshire County Council Committee, for officers, and a Members' Remuneration Panel. Effective mechanisms are in place to monitor service delivery. The County Council's vision, strategic plans, priorities and targets are developed through robust mechanisms, and in consultation with the local community and other key stakeholders and they are appropriately documented and published. When working in partnership, members are clear about their roles and responsibilities, both individually and collectively in relation to the partnership and County Council. There is clarity about the legal status of individual partnership arrangements. Representatives of the County Council understand and make clear to all other partners the extent of their authority to bind the County Council to partner decisions. Representatives of the County Council ensure representatives of partner organisations also clarify the extent of their own authority to bind their organisation to the County Council and other partner decisions. |
Note1 The source documents or other means to demonstrate compliance are listed in Appendix B.
Promoting values for the County Council and demonstrating the values of good governance through upholding high standards of conduct and behaviour.
4.4 The County Council is committed to the highest ethical standards and requires Members, Chief Officers and all other staff to comply with the seven principles of public life defined by the Nolan Committee: selflessness; integrity, objectivity, accountability, openness, honestly and leadership. Also, the three additional principles of The Relevant Authorities (General Principles) Order 2001: respect for others; duty to uphold the law; and good stewardship.
4.5 The County Council has the expectation that all outside individuals and organisations, including partners, suppliers, contractors and claimants will act towards the Council with honesty and integrity.
Supporting principles. |
To ensure these principles are adhered to the County Council has the following in place: (note 1) |
Ensuring County Council members and officers exercise leadership by behaving in ways that exemplify high standards of conduct and effective governance. |
The County Council's leadership sets the tone for the organisation by creating a climate of openness, support and respect. Codes of conduct and protocols outline the standards of conduct and personal behaviour expected of members and staff, of work between members and staff and between the County Council, its partners and the community. Procedures are in place to ensure that employees of the County Council are not influenced by prejudice, bias or conflict of interest in dealing with different stakeholders. |
Ensuring that organisational values are put into practice and are effective. |
Shared values including leadership values, for both the County Council and staff have been developed, reflecting public expectations. These have been communicated to members, staff, the community and partners. Systems and processes are designed and monitored to ensure that they confirm to appropriate ethical standards. The Standards Committee, set up to oversee, maintain and strengthen high standards of conduct in public office, meets on a regular basis and has a clear terms of reference. The shared values act as a guide for decision making and as a basis for developing positive and trusting relationships within the County Council. Values are agreed for partnership arrangements against which decision making and actions can be judged. |
Note1 The source documents or other means to demonstrate compliance are listed in Appendix B.
Taking informed and transparent decisions which are subject to effective scrutiny and managing risk.
4.6 The Constitution sets out how decisions are made and the procedures to be followed to ensure that these are efficient, transparent and accountable to local citizens. The Constitution is accessible by all, on the County Council's website. In addition, the Chief Executive's department sets out the corporate decision making process, emphasising the need to ascertain whether there are any risks to be managed under the categories political, reputation, staff, customer or legal & constitutional risks.
4.7 The risk management process is embodied into all aspects of the County Council's activities and the approach to assessing risks is comprehensively documented in the Risk Management Strategy and Policy. This explains how a risk based approach is taken to make better decisions, support improved delivery of services, build on the success of our partnership arrangements and to ensure the most effective use of resources.
Supporting principle. |
To ensure these principles are adhered to the County Council has the following in place: (note 1) |
Being rigorous and transparent about how decisions are taken and listening and acting on the outcome of effective scrutiny. |
An effective scrutiny function which encourages constructive challenge and enhances the County Council's performance. Procedures are in place for documenting evidence for decisions and recording the criteria, rationale and considerations upon which decisions are based. Arrangements are in place to safeguard members and employees against conflicts of interest. The Governance Committee undertakes the functions of an audit committee and is considered sufficiently independent of the executive and scrutiny functions. The effectiveness of the Governance Committee is regularly reviewed. Effective, transparent and accessible arrangements are in place for dealing with complaints. |
Having good-quality information, advice and support to ensure that services are delivered effectively and are what the community wants/needs. |
Decisions processes ensure that members and staff are provided with relevant, timely information which gives clear explanations of technical issues and their implications. Professional advice is provided and recorded on matters that have legal or financial implications to support the decision making process. |
Ensuring that an effective risk management system is in place. |
Risk management is embedded into the culture of the County Council, with members and managers at all levels recognising that risk management is part of their jobs. Effective arrangements for whistle-blowing are in place to which officers, staff and all those contracting with, or appointed by the County Council have access. |
Using legal powers to the full benefit of the citizens and communities in the area. |
The County Council strives to utilise its powers to the full value of the community. The County Council observes both the specific requirements of legislation and general responsibilities placed on authorities by public law. The County Council observes all specific legislative requirements placed on it, as well as the requirements of general law. The key principles of good administrative law are embedded within procedures and decision making processes. |
Note1 The source documents or other means to demonstrate compliance are listed in Appendix B.
Developing the capacity and capability of members and officers to be effective.
4.8 The County Council is committed to developing its people to ensure they have the right skills for their roles. This is achieved through the recruitment process and Development and Training Strategy, supported by the Individualised Performance Planning (IPP) including, individual staff training plans.
4.9 The County Council welcomes a wide range of people to stand for election as this increases the range of experience, background and gender of members. A members induction scheme is in place and an ongoing training programme is available.
Supporting principles. |
To ensure these principles are adhered to the County Council has the following in place: (note 1) |
Making sure that members and officer have the skills, knowledge, experience and resources they need to perform well in their roles. |
Induction programmes are in place for members and officers as well as opportunities for updating knowledge on a regular basis. These programmes are tailored to individual needs. The statutory officers have the skills, resources and support necessary to perform effectively in their roles. These roles are properly understood throughout the County Council. |
Developing the capability of people with governance responsibilities and evaluating their performance, as individual and as a group. |
The skills required by members and officers are assessed and the County Council is committed to developing those skills to enable roles to be carried out effectively. Skills are improved on a continuing basis to facilitate performance improvements. This includes scrutiny and challenge functions. Arrangements are in place for reviewing the performance of the executive as a whole and of individual members and where necessary, an action plan is developed to address any issues arising including training and development needs. |
Encouraging new talent for membership of the County Council so that best use can be made of individual skills and resources in balancing business continuity and renewal. |
Arrangements are in place to encourage individuals from all sections of the community to engage with, contribute to and participate in the work of the County Council. Career structures are in place for members and officers to encourage participation and development. |
Note1 The source documents or other means to demonstrate compliance are listed in Appendix B.
Engaging with local people and other stakeholders to ensure robust public accountability.
4.10 In common with all local authorities, the County Council is accountable to its citizens and other stakeholders in a number of ways. Elected members are accountable to their communities for the decisions they have made and to Government in respect of meeting national standards and targets. The Government also oversees the spending of the County Council and has the powers to intervene.
4.11 Both Members and Officers are subject to codes of conduct and there are processes in place to deal with any maladministration or other irregularity. The County Council is also subject to external review through external audit and the publishing of annual financial statements and the annual report.
Supporting principles. |
To ensure these principles are adhered to the County Council has the following in place: (note 1) |
Exercising leadership through a robust scrutiny function which effectively engages local people and all local institutional stakeholders, including partnerships, and develops constructive accountability relationships. |
The County Council's accountabilities are clear and understood by staff and the community. The County Council has identified institutional stakeholders and assesses the effectiveness of the relationships and any changes required. An annual report is produced on the activity of the scrutiny function. |
Taking an active and planned approach to dialogue with and accountability to the public to ensure effective and appropriate service delivery whether directly by the County Council, in partnership or by commissioning. |
Clear channels of communication are in place with all sections of the community and other stakeholders and these are regularly monitored. Meetings are held in public unless there are good reasons for confidentiality. Arrangements are in place to enable the County Council to engage with all section of the community effectively. These arrangements recognise that different sections of the community have different priorities and the County Council has processes in place for dealing with these competing demands. There is a clear policy on the types of issues that will be subject to consultation or engagement with the public and service users. This includes arrangements for feedback to demonstrate the changes made. An annual performance plan is published providing information on the County Council's vision, strategy, plans and financial statements as well as information about outcomes, achievements and satisfaction of service users. The County Council as a whole is open and accessible to the community, service users and its staff and is committed to openness and transparency in all its dealings, including partnerships. This is subject only to the need to preserve confidentiality in those specific circumstances where it is proper and appropriate to do so. |
Making best use of human resources by taking an active and planned approach to meet responsibilities to staff. |
There is a clear policy on how staff and their representatives are consulted and involved in decision making. |
Note1 The source documents or other means to demonstrate compliance are listed in Appendix B.
5 Annual Assurance, roles and responsibilities
5.1 The Leader of the Council and the Chief Executive will provide an annual governance statement (previously the statement of internal control). Assurance will be given on the effectiveness of the governance arrangements in operation and how any areas for improvement are to be addressed. In discharging this duty, the Leader and Chief Executive, or their delegated officers will:
· consider the extent to which the County Council complies with the best practice guidance specified by CIPFA/SOLACE
· identify the systems, processes and documentation that provide evidence of compliance
· identify the individuals and committees responsible for monitoring and reviewing the systems, processes and documentation identified
· identify any issues that have not been adequately addressed and consider how the issue is to be addressed
· identify the individuals who would be responsible for undertaking the actions required and plan accordingly.
5.2 The Monitoring Officer conducts an annual exercise identifying risks, principles of good governance to limit risks, sources of assurance and the responsible officer, as the basis of assessment. This is achieved through the use of corporate and departmental corporate governance questionnaires, completed by Chief Officers.
5.3 Other sources of assurance to the Monitoring Officer include: Legal Services on compliance with statute and the exercising of legal powers; Internal Audit; External Audit reports; External Inspectorates; Performance Reviews and Risk Management reviews; the outcomes of which are reported in the draft Annual Governance Statement to Governance Committee. A diagram summarising the Annual Governance Statement assurance framework is shown as Appendix C.
5.4 The work of the Monitoring Officer is supported by an independent assessment of compliance with the Code, which is undertaken by Internal Audit. The reviews are carried out in accordance with the Internal Audit Strategy, approved by the Governance Committee, and an Annual Audit Plan, which is approved by the Section 151 Officer. Compliance with the principles of good governance are tested on a sample basis, with all risk areas being covered over a five year period. Assessment includes the operation of the sources of assurance given in the corporate and departmental governance questionnaires.
5.5 The findings of Internal Audit reviews are reported to the Monitoring Officer and relevant Chief Officers. A summary of findings is also reported to the Governance Committee, during the year, and in the Annual Internal Audit Opinion Report.
5.6 An annual review of the effectiveness of the system of internal audit is to be provided as part of the schedule of evidence to enable the Monitoring Officer to conduct an independent assessment. This will include the arrangements for approving the audit strategy and plans, management's responses to audit recommendations, and any follow up action taken by the Governance Committee.