Archived decisions

Hampshire Fire and Rescue Authority

Governance Committee

Standards Committee

18 December, 2009

Review of Governance Structure

Report of the Clerk

1

Summary

1.1

At the Annual Meeting on 24^th June 2009, it was agreed that the Governance Committee should be asked to review, and make recommendations to the Authority upon, the Authority's current committee structure and decision making arrangements, to ensure that these remain efficient and fit for purpose in addressing future challenges facing the Authority. The purpose of this report is to enable Governance Committee to consider some of the issues that arise in this respect, and to decide how the review should be taken forward.

1.2

An early draft of the report has been considered by CMT, and comments made by CMT have been incorporated.

2

Recommendation

2.1

That the Committee invites each of the Authority's committees to consider their own future role, in the light of the issues raised in the report and any additional considerations highlighted by Governance Committee. Responses are to be reported back to the Governance Committee on 20 March 2010, so that Governance Committee can make recommendations for future governance structure to the Authority for adoption at the Annual Meeting in June 2010.

3

Introduction

3.1

The approach taken in the report is to consider the current terms of reference of each of the Authority's five standing committees, and CMT. The terms of reference are attached as an appendix.

4

Terms of Reference - Finance & General Purposes Committee

4.1

There is a perception that the business of meetings of this Committee tend to focus on the "finance" side of its terms of reference - the revenue budget, capital programme and financial impact of service development strategies - at the expense of the "general purposes" part of its remit. This currently includes considering and determining the vehicle replacement programme and other major capital schemes, and the oversight of asset management.

4.2

Consideration could therefore be given to what other areas of the business might be the subject of the Committee's attention on a more regular basis. This could include oversight of the fifth priority in the Service Plan 2009 -12, which concerns the management of resources in a way that achieves efficiency savings of £1.5m per year.

4.3

The Committee's remit could also include oversight of the fourth priority in the Service Plan, concerning environmental management and reduction of carbon footprint. If not, consideration should be given to where else within the committee structure members should have oversight of this area.

4.4

The terms of reference currently refer to the Committee approving the accounts. To avoid conflict with the terms of reference of the Governance Committee, this could be amended to read: 'To receive, consider and approve budget monitoring reports and a year-end report on the outturn position as set out in the Authority's final accounts, and to make recommendations to the Authority on any proposals to change the budget'.

5

Terms of Reference - Performance Review and Scrutiny Committee

5.1

There have been a number of developments in local authority scrutiny in recent years. The following should be considered therefore, in determining the Authority's future arrangements for scrutiny:

5.1.1

Under changes introduced by the Local Government and Public Involvement in Health Act 2007, the overview and scrutiny committees of Hampshire County Council, Portsmouth City Council and Southampton City Council may scrutinise, report and make recommendations to, any partner authority (e.g. HFRA) in relation to a local improvement target specified in the relevant local area agreement. The partner authority is then under a duty to have regard to the report and recommendations in exercising its functions.

5.1.2

The CLG consultation paper "Strengthening Local Democracy" published on 21 July 2009, has proposed a further increase in scrutiny powers to include all services within a council's area that are provided from public funds e.g. utility companies. Specific reference is made to a power to scrutinise the integrated risk management plans of fire and rescue authorities "to make sure their plans fully reflect the right balance of protection, prevention and response for different communities; and to examine performance of individual fire and rescue authorities against their published equality and diversity plans".

5.1.3

From 2009 the Comprehensive Area Assessment replaces the previous inspection regime. The new arrangements are designed to examine how well public bodies are working together locally to meet the needs of the people they serve.

5.2

Having regard to the above, it is suggested that consideration is given to:

5.2.1

How the Authority will ensure that its own scrutiny arrangements are sufficiently robust to protect it from exposure to any criticism from the overview and scrutiny committees of partner authorities, and

5.2.2

Shifting the emphasis from pre- and post-implementation scrutiny of the Authority's own decisions and projects, to embrace scrutiny of how effectively it is engaging with neighbouring public services to achieve better outcomes for local people.

5.3

The Committee's remit includes a programme of efficiency reviews, to effect continuous improvement in service delivery, having regard to economy, efficiency and effectiveness. This role is likely to take on ever-increasing importance in the harsh financial climate anticipated over the next few years. Consideration could be given to the role that the Committee will play in giving member oversight to relevant major initiatives contained in the Service Plan, such as the development of risk-based response standards, and efficient and flexible crewing. The Chief Fire Officer comments that this might be advantageous as many of the major efficiency issues will come from Service Delivery, who often report to this Committee. He suggests that this accords well with their scrutiny of service provision.

5.4

This Committee's terms of reference may be one possible place to accommodate oversight of the development of regional working with partner authorities to achieve service improvements (another Service Plan objective). This is an area that has grown in importance in recent years and it is suggested this now merits specific reference within the decision making structure. Activity might include periodic reports back from the Regional Management Board. Currently such reports are provided to the full Authority and the Chief Fire Officer is keen for this to continue. As an alternative, therefore, this area could be included in the matters reserved to full Authority (see Para 9.1 below).

6

Terms of Reference - Human Resources Committee

6.1

We may wish to consider a more explicit link here to monitoring of the Service Plan action to encourage greater representation for women and ethnic minorities in the Service.

6.2

Current terms of reference include the approval of training and development policies. The current Service Plan target on development of core skills of firefighters, refers to a review being undertaken of the effectiveness of current training methods, with recommendations being brought forward. Consideration can be given to the role that the Committee would wish to play in that review process, and whether this should be a more active one beyond merely approving the resultant recommendations.

7

Terms of Reference - Standards Committee

7.1

These terms of reference are largely prescribed duties under legislation and no modification is suggested.

8

Terms of Reference - Governance Committee

8.1

Some confusion has arisen in practice between the responsibilities of Governance Committee, and some aspects of Performance Review and Scrutiny Committee. The opportunity should be taken to clarify the respective roles.

8.2

The calendar of meetings should be reviewed to ensure it facilitates achievement of financial reporting deadlines, particularly around the finalisation of the annual accounts.

8.3

The terms of reference currently refer to the Committee approving the accounts. To clarify the relationship with Finance & General Purposes Committee (see Para 4.4 above), this could be amended to read: 'In line with its role as the body charged with responsibility for governance, to receive, consider and approve the draft of the formal Statement of Accounts (incorporating the Annual Governance Statement) in compliance with the statutory deadline of 30 June'.

.

8.4

Responsibility for review of the Risk Register and Integrated Risk Management Plan currently rests with the Corporate Management Team. This is not a decision making body and has no delegated powers. Further, meetings, agenda papers and minutes are not in the public domain. Consideration should be given to future allocation of these responsibilities within the governance structure, and whether this sits appropriately alongside the audit responsibilities of the Governance Committee (attention to this is particularly relevant given the CLG proposals referred to at Para 5.1.2 above). In addition to formal reporting in this way, the opportunity could be retained for leading members to discuss the corporate risk and direction which flow from these documents, via CMT. This is seen as important as a means of developing members' understanding of risk issues and their engagement.

9

Matters for the Full Authority

9.1

Members may wish to record in the Authority's governance framework that there are certain matters of such a strategic and/or fundamental nature that these should not be delegated to a committee, but reserved to the full Authority. Examples might include:

9.1.1

Determining policy and strategy

9.1.2

Setting objectives and priorities through annual approval of the Service Plan

9.1.3

Approval of the budget

9.1.4

Setting of the precept

9.1.5

Receipt of the approved accounts

9.1.6

Ensuring that the Authority fulfils its statutory responsibilities

9.1.7

Reports back from Regional Management Board

10

Scheme of Delegation

10.1

This was last reviewed in 2004 and good practice would suggest that this be reviewed once again, to ensure it remains fit for purpose. There are some minor areas of potential overlap between roles and these can be clarified.

11

Corporate Management Team

11.1

The current terms of reference of CMT recite the background to it being established, and refer to a review by Governance Committee in 2005. It was resolved that CMT was not a formal decision making body, but should remain as a non-executive informal joint (cross party) member/officer working group comprising senior members of the Authority and principal officers of the Service.

11.2

Consideration can be given to future remit, direction and title in the light of any wider changes to committee responsibilities.

11.3

In giving consideration to an earlier version of this paper, members of CMT made a number of observations. Some members felt that the decision making structure should be updated to reflect the points made above, but that beyond this, there was little need for further change. Another view was that the proposals did not go far enough, and that more searching questions should be asked e.g. whether the Authority needed to have the same number of committees, whether committees should meet at different times. There was a view that videoconferencing should be explored. Another view was that true member engagement in the business of the Authority was more important than the number of committees.

12

Contribution to Corporate Aims and Objectives

12.1

A fundamental aim of the Review is to ensure explicit provision is made for effective member involvement in strategic planning and scrutiny of performance, in relation to Service Plan priorities and the securing of better outcomes for local people.

13

Risk Analysis

13.1

The undertaking of the Review is not expected to give rise to any undue risks to the Authority. The timescale for completion is regarded as realistic and achievable.

14

Resource Implications

14.1

As inputting to the Review by members is proposed to be via consideration at scheduled meetings of the Authority's committees, this will not give rise to any additional meeting requirements. The process of drawing together comments and the preparation of a summary report for Governance Committee and recommendations to full Authority, will be undertaken within the role of the Clerk.

15

Human Resources Implications

15.1

None

16

Physical and ICT Resources Implications

16.1

Any changes to governance structure will be updated on the Authority's website in due course.

17

Financial Implications

17.1

None

18

People Impact Assessment

18.1

The proposals are compatible with equalities requirements.

19

Conclusion

19.1

The above comments suggest a need for some minor refinements to the structure, (1) to reflect changes in legislation and practice, and (2) to ensure explicit provision is made for effective member involvement in strategic planning and scrutiny of performance, in relation to Service Plan priorities and the securing of better outcomes for local people.

19.2

It is recommended that the Committee invites each of the Authority's committees to consider their own future role, in the light of the issues raised in the report and any additional considerations highlighted by Governance Committee. Responses can be reported back to the Governance Committee at its next meeting on 20 March 2010, so that Governance Committee can make recommendations for future governance structure to the Authority for adoption at the Annual Meeting in June 2010.

Section 100D - Local Government Act 1972 - background papers

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 this report.

N.B. The list excludes:

Published Works

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

TITLE FILE

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