Constitution Part 5 - Code of Corporate Governance

3.1 Behaving with integrity, demonstrating strong commitment to ethical views, and respecting the rule of law.

The Council will ensure a culture exists where members and officers behave with integrity, establishing specific standard operating principles for the Authority that are communicated and understood. Members and Statutory Officers fulfil their responsibilities in accordance with legislative and regulatory requirements.

The Council will do this by establishing and keeping under review:

• The Council’s values;
• A Member Code of Conduct; 
• An Officer Code of Conduct;
• A Protocol governing Member/Officer relations;
• A Protocol detailing the roles of Members and officers in decision-making (Part 3, Responsibility for Functions);
• Systems for reporting and dealing with any incidents of fraud and corruption, for example, through ‘Whistle-blowing’ procedures and anti-fraud policies and procedures including a policy relating to combating money laundering.
• Ensure that systems and processes for financial administration, financial control and protection of the authority’s resources and assets are designed in conformity with appropriate ethical standards and monitor their continuing effectiveness in practice.  

3.2 Ensuring openness and comprehensive stakeholder engagement

The Council will seek and respond to the views of stakeholders and the community.

The Council will do this by:

• Forming and maintaining relationships with the leaders of other organisations;
• Having a policy on consultation and providing access to a range of consultation methods, particularly to those groups not yet reached;
• Encouraging and supporting the public in submitting requests for the review of services and recommendations for improvement;
• Providing and supporting ways for Citizens to present community concerns to the Full Council
• Delivering services to meet the needs of the local community, and put in place processes to ensure that they operate effectively in practice;
• Directing resources to those that need services most; 

3.3 Defining outcomes in terms of sustainable economic, social and environmental benefits.

The Council will explain and report regularly on activities, performance and the Council’s financial position.Timely, objective and understandable information about the Council’s activities, achievements, performance and financial position will be provided.  

The Council will do this by publishing:

• A Council Plan every three years;
• Externally audited accounts;
• Robust performance information reported regularly to Policy Committees.

The Council will foster a culture of behaviour based on shared values, ethical principles and good conduct. The Council will do this by establishing and keeping under review:

• The Council’s values;
• A Member Code of Conduct;
• An Officer Code of Conduct;
• A Protocol governing Member/Officer relations; 
• A Protocol detailing the roles of Members and officers in decision-making (Part 3, Responsibility for Functions);
• Systems for reporting and dealing with any incidents of fraud and corruption, for example, through ‘Whistle-blowing’ procedures and anti-fraud policies and procedures including a policy relating to combating money laundering.
• Ensure that systems and processes for financial administration, financial control and protection of the authority’s resources and assets are designed in conformity with appropriate ethical standards and monitor their continuing effectiveness in practice. 

3.4 Determining the interventions necessary to optimise the achievement of the intended outcomes.  

The Council will ensure that appropriate legal, financial and other professional advice is considered as part of the decision-making process.

The Council will be transparent about how decisions are taken and recorded.

The Council will do this by:

• Ensuring that all ‘Key Decisions’ are made in public and that information relating to those decisions is made available to the public1;
• Ensuring that all decisions of Policy and Regulatory Committees (including those discharging statutory responsibilities) of the Council are made in Public and that information relating to those decisions is made available to the public2;
• Recording all decisions that are made by other committees and officers3 and making the details publicly available;
• Having rules and procedures which govern how decisions are made.

1 Except where that information is exempt under the provisions of the Freedom of Information Act or determined as being confidential by Government or otherwise exempt by the Council.

2 Except where that information is exempt under the provisions of the Freedom of Information Act or determined as being confidential by Government or otherwise exempt by the Council.

3 For Officers this relates to Key, Major and significant operational decisions only.

The Council will ensure that the necessary roles and responsibilities for the Governance of the Council are identified and allocated so that it is clear who is accountable for decisions that are made.  

The Council will:

• Appoint Committees to discharge the Council’s Policy responsibilities;
• Appoint Committees to discharge the Council’s Regulatory and Statutory responsibilities;
• Appoint Committees to discharge joint responsibilities with other Authorities;
• Have in place a scheme of delegated Council responsibilities to Officers;
• Have in place effective and comprehensive arrangements for the review and overseeing of services;
• Ensure that the Director of Finance, IT and Digital (as the designated Section 151 Officer) reports directly to the Chief Executive  (designated as the Head of Paid Service) and is a member of the Executive Leadership Team;  
• Ensure that the authority’s governance arrangements allow the Director of Finance, IT and Digital and the Councils Monitoring Officer direct access to the Chief Executive and to other members of the Executive Leadership Team.
• Ensure that the Director of Finance, IT and Digital leads the promotion and delivery by the whole organisation of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively;  
• Ensure that budget calculations are robust and reserves adequate, in line with statutory requirements;
• Ensure that appropriate management accounting systems, functions and controls are in place so that finances are kept under review on a regular basis. These systems, functions and controls will apply consistently to all activities including partnership arrangements, outsourcing or where the authority is acting in an enabling role. 

3.5 Developing the Authorities capacity, including the capability of its leadership and the individuals within it.

The Council will ensure that those charged with the governance of the Council have the skills, knowledge and experience they need to perform well. The Council will do this by:

• Implementing a Workforce Strategy including Member Development;
• Cascading regular information to Members and staff.

3.6 Managing risks and performance through robust internal control and strong public financial management.  

The Council will ensure;  

• An effective internal audit function is resourced and maintained and that the authority’s governance arrangements allow the Head of Audit and Governance and Director of Finance, IT and Digital direct access to the audit and governance committee and external audit;  
• Ensuring the authority’s arrangements for financial and internal control and for managing risk are addressed in annual governance reports and  the authority puts in place effective internal financial controls covering codified guidance, budgetary systems, supervision, management review and monitoring, physical safeguards, segregation of duties, accounting procedures, information systems and authorisation and approval processes;
• Ensuring the provision of clear, well presented, timely, complete and accurate information and reports to budget managers and senior officers on the budgetary and financial performance of the Authority and the delivery of services.  

The Council will operate a risk management system that aids the achievement of its strategic objectives, protects the Council’s reputation and other assets and is compliant with statutory and regulatory obligations. The Council will ensure that the risk management system: 

• Formally identifies and manages risks;
• Involves elected members in the risk management process;
• Maps risks to financial and other key internal controls;
• Incorporates service continuity planning; and
• Reviews and, if necessary, updates its risk management processes at least annually.

3.7 Implementing good practices in transparency, reporting, and audit to deliver effective accountability.

• Communicating to the public and stakeholders in an understandable and transparent manner.

The Council will do this by:

• Ensure that timely, accurate and impartial financial advice and information is provided to assist in decision making and to ensure that the authority meets its policy and service objectives and provides effective stewardship of public money and value for money in its use;  
• Ensure that the authority maintains a prudential financial framework; keeps its commitments in balance with available resources; monitors income and expenditure levels to ensure that this balance is maintained and takes corrective action when necessary;
• Ensure compliance with CIPFA’s Code on a Prudential Framework for Local Authority Capital Finance and CIPFA’s Treasury Management Code;  
• Developing effective relationships and partnerships with other public sector agencies and the private and voluntary sectors, and consider outsourcing where it is efficient and effective to do so;
• Responding positively to the findings and recommendations of external auditors and statutory inspectors and putting in place arrangements for the implementation of agreed actions;
• Comparing information about our services with services provided by similar organisations and assessing why levels of efficiency, effectiveness and quality are different elsewhere.