Governance and Audit Committee

Governance Framework summary

June 2011 - Version 2

Governance Framework summary

Foreword

Good governance is important to all officers and members of Thanet District Council.

It is a key responsibility for the Leader and Chief Executive, and it is also important for other Members of Cabinet, full Council and Senior Management Team, and in particular the Governance and Audit Committee who are responsible for monitoring and providing assurance on our governance arrangements.

Good management, good performance and good financial controls all lead to good governance, and enable us to engage with our public and ultimately demonstrate good outcomes for our community.

The Local Code of Corporate Governance has been prepared in line with principles of the CIPFA / SOLACE framework Delivering Good Governance in Local Government, and will be reported on through an Annual Governance Statement showing the effectiveness of our current arrangements and any improvements that can be made for the future.

Introduction

Governance is about how we ensure that we are doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest and accountable manner. Good governance leads to good management, good performance, good stewardship of public money, good public engagement and, ultimately, good outcomes for our citizens and service users.

Good governance enables us to pursue our vision and corporate objectives effectively as well as underpinning these with mechanisms for the control and management of risk. Governance must be owned by all stakeholders, including senior management and members, thus forming the intrinsic core of the council. It should remain embedded in the culture of the council and applied within a transparent framework of legislative requirements, governance principles and management processes.

Principles behind Governance

The Cadbury Report (1992) identified three fundamental principles of corporate governance as openness, integrity and accountability.

The Cadbury report defined these three principles in the context of the private sector, and, more specifically, of public companies, but they are as relevant to public service bodies as they are to private sector entities.

The Nolan Committee (1995) identified and defined seven general principles of conduct which should underpin public life, and recommended that all public service bodies draw up codes of conduct incorporating these principles. These principles of public life are selflessness, integrity, objectivity, accountability, openness, honesty and leadership.

The Relevant Authorities (General Principles) order 2001 outlined three additional principles of conduct to those identified by the Nolan Committee, these being respect for others, duty to uphold the law and stewardship.

Effective Governance

An effective governance framework will demonstrate the following attributes, and more:

A clearly communicated vision.
Arrangements exist for measuring the quality of services for users.
The clearly defined roles and responsibilities for the executive, non-executive, scrutiny and officer functions.
Codes of Conduct for members and staff.
Regularly reviewed standing orders, standing financial instructions, scheme of delegation and supporting procedure notes/manuals.
An effective Governance and Audit Committee.
Corporate compliance is evident.
A Whistleblowing Policy is in place and well publicised.
Development needs for members and senior officers are identified.
Open consultation is encouraged with all sections of the community and other stakeholders.
Governance arrangements for major partnerships are monitored.

Annual Governance Statement

The Chief Executive (S151 Officer), all Service Managers, the Monitoring Officer, Internal Audit and managers across the authority will have a role to play in this process. The overall assurance given is not a pass or fail. It is a narrative statement pointing to the council's strengths and weaknesses.

The Annual Governance Statement will include sections on the scope of responsibility, the purpose of the governance framework, the governance framework, a review of the effectiveness and detail any significant governance issues. It will also detail any improvements made within the timeframe referred to.

Completion of the statement should flow from the normal business planning and review processes of the council, Governance and Audit Committee, Standards Committee and the planned work of Internal Audit. The Service Plan is one of the central mechanisms for each Director managing their own area of activity and therefore sits at the centre of the governance process.

Governance is integral to the whole business management process and not an add-on. Hence it uses existing documents and procedures and the risks and control framework. In particular, it links to performance reporting as good governance promotes good service but poor service performance reflects a failure of governance. Effective internal controls are an important part of the governance process. Through their audit assurance work, Internal Audit will provide an opinion on the effectiveness of the systems of internal control.

Annual Governance Statement Preparation

The draft Annual Governance Statement will be prepared, based on the internal control framework, core and supporting principles, internal and external reviews and audit evidence provided. This will be considered by the Governance Board, and then Governance and Audit Committee will provide the final review, evaluation and approval for signature.

The Governance and Audit Committee will monitor the overall governance process and ensure that the process is robust and agreed actions identified are properly implemented. The final statements will then be signed before the end of June by the Leader and Chief Executive based on a clear evidence trail.

Annual Governance Statement Timetable

(Circular chart)

July / September AGS audited AGS approved by G&A by 30 Sept		Throughout the Year Evaluate controls Review risk registers Performance review Management reports Internal Audit reports Review last years statement and action plan

May/June Prepare draft AGS Draft AGS accepted AGS signed by Leader and Chief Executive		March/April Review of Internal Audit Effectiveness Managers Assurance Statements start Other sources of assurance
	April/May Internal Audit annual report External Audit letter G&A annual report

Annual circular timetable

Throughout the Year

Evaluate controls
Review risk registers
Performance review
Management reports
Internal Audit reports
Review last years statement and action plan

March/April

Review of Internal Audit Effectiveness
Managers Assurance Statements start
Other sources of assurance

April/May

Internal Audit annual report
External Audit letter
G&A annual report

May/June

Prepare draft AGS
Draft AGS accepted
AGS signed by Leader and Chief Executive

July/September

AGS audited
AGS approved by G&A by 30 September

Annual Review and Reporting

The Section 151 Officer and Monitoring Officer have been given responsibility to oversee the implementation and monitor the operation of the Local Code of Corporate Governance, and through the Governance Group and the East Kent Audit Partnership will periodically review these arrangements and each will contribute to the annual assessment process. The review of our governance arrangements is an ongoing process.

Following the annual review of the Governance Framework and Local Code of Corporate Governance all members and officers of the council will be notified through appropriate means, such as members briefings, staff development sessions, ‘Staff matters’ and ‘TDC News’ as examples.

Download: Governance Framework summary (PDF 126KB)

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