1. Introduction
Corporate governance is a term used to describe the way that organisations
direct and control what they do. For local authorities, it includes the systems,
policies and processes as well as the cultures and values that underpin a
Council’s arrangements for effective:
- Leadership
- Management
- Performance
- Delivery of positive customer outcomes
- Community engagement
- Stewardship of public money
2. Good Governance
Wealden District Council (“the Council”) is committed to the principles of good corporate governance identified in the CIPFA/SOLACE guidance “Delivering Good Governance in Local Government” (“Good Governance Framework”). This Good Governance Framework sets out seven core principles of governance as detailed in the diagram below, and illustrates that good governance is dynamic, and involves continuous evaluation and review.
Good Governance Framework – Core Principles:
Core Principle A: Behaving with integrity, demonstrating commitment to ethical values and respecting the rule of law.
Core Principle B: Ensuring openness and comprehensive stakeholder engagement.
Core Principle C: Defining outcomes in terms of sustainable economic, social and environmental benefits.
Core Principle D: Determining the interventions necessary to optimise the achievement of outcomes.
Core Principle E: Developing the entity’s capacity, including the capability of its leadership and the individuals within it.
Core Principle F: Managing risks and performance through robust internal control and strong public financial management.
Core Principle G: Implementing good practices in transparency, reporting and audit, to deliver effective accountability.
This document sets out the Council’s Local Code of Corporate Governance (“Local Code”) and the processes for monitoring its effectiveness. The Local Code provides the framework for the Council to achieve its aims and objectives. It applies to all staff, elected Members and any person, agent, contractor or other body carrying out functions on behalf of the Council.
The Council’s Monitoring Officer (and Deputy in their absence) shall be responsible for:
- Overseeing the implementation and monitoring the operation of the Local
Code; - Reviewing the operation of the Local Code in practice on an annual basis;
- Reporting annually to the Audit, Finance and Governance Committee and
Full Council on compliance with the LocalCode and any changes that may
be needed to ensure its effectiveness in practice; - Reporting any significant revisions to the Local Code to stakeholders.
3. Nolan Principles
Good governance and this Local Code are underpinned by the Seven Principles of
Public Life (also known as the Nolan Principles) which outline the ethical
standards those working in the public sector are expected to adhere to. The
principles are:
| Selflessness | Holders of public office should act solely in terms of the public interest. |
| Integrity | Holders of public office must avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence them in their work. They should not act or take decisions in order to gain financial or other material benefits for themselves, their family, or their friends. They must declare and resolve any interests and relationships. |
| Objectivity | Holders of public office must act and take decisions impartially, fairly and on merit, using the best evidence and without discrimination or bias. |
| Accountability | Holders of public office are accountable to the public for their decisions and actions and must submit themselves to the scrutiny necessary to ensure this. |
| Openness | Holders of public office should act and take decisions in an open and transparent manner. Information should not be withheld from the public unless there are clear and lawful reasons for so doing. |
| Honesty | Holders of public office should be truthful. |
| Leadership | Holders of public office should exhibit these principles in their own behaviour. They should actively promote and robustly support the principles and be willing to challenge poor behaviour wherever it occurs. |
4. Applying the Core Principles of Good Governance
The following table outlines how the Council will meet the core principles in the Good Governance Framework and summarises the systems, policies and procedures it already has in place to support this.
The headings below fully reflect the CIPFA / SOLACE model and compliance against the Core Principles will be reviewed annually and the outcomes incorporated into a revised Annual Governance Statement for the last accounting year.
Supporting Principles
- Behaving with integrity openness, support and respect
- Demonstrating strong commitment to ethical values
- Respecting the rule of law
How do we achieve this?
- The Council’s Constitution: sets out how the Council operates, how decisions are made and the procedures which are followed to ensure that these decisions are efficient, transparent and accountable to local people. The Constitution is the subject of regular review to ensure it continues to operate as an effective and efficient framework for democratic decision-making.
- Chief Executive: It is the role of the Chief Executive, also known as the Head of Paid Service, to ensure that all the Council’s functions are properly co-ordinated as well as organising staff and appointing appropriate management.
- The Monitoring Officer: It is the role of the Monitoring Officer to report on matters they believe to be illegal or amount to maladministration, to be responsible for matters relating to the conduct of councillors and officers and, to be responsible for the operation of the council’s constitution. In Wealden, the monitoring officer is the Chief Legal and Governance Officer.
- Section 151 Officer: section 151 of the Local Government Act 1972 requires local authorities to make arrangements for the proper administration of their financial affairs and appoint a S151 Officer. In Wealden, the S151 Officer is the Chief Finance Officer.
- Corporate Management and Senior Leadership Teams (CMT/SLT): CMT brings together the Council’s Chief Executive and Directors. CMT/SLT sets the culture and tone for the organisation underpinned by the Council’s values.
- Council’s Values: Working Together; Empathy; Ambitious; Lead; Deliver.
- Member and Officer Codes of Conduct: these set out the principles of conduct expected of all councillors and officers, which reflect the Nolan Principles.
- Anti-fraud and Anti-corruption framework: The Anti-Fraud and Anti-Corruption Framework sets out the policies of the Council with regard to fraud, corruption and malpractice
Supporting Principles
- Openness
- Engaging comprehensively with institutional stakeholders
- Engaging with individual citizens and service users effectively
How do we achieve this?
- Engagement and communication: The Council is committed to effective engagement and meaningful consultation with our communities. The Council recognises the importance of effective stakeholder engagement and has developed a range of opportunities for customers to help shape the work we do, the services we deliver and the places within they live and work. Examples include: online engagement hub “LetsTalkWealden” and “Ask the Leader” which allows residents to ask about policies, or other matters involving the Council.
- Partnership Working: The Council takes a lead role in working with partners to greater benefit the district as a whole. This includes ongoing work with parish and town councils, the voluntary sector and stakeholders to focus on delivering effective and joined up solutions and improvements to priority issues for the local area. Examples include: – Wealden Strategic Partnership; Safer Wealden Partnership; Wealden Weekly/ MyAlerts; Benefit Outreach Days; The Wealden Dementia Alliance and the Wealden Disability Involvement Group ; Wealden Community Equalities Reference Group; Annual Parish Conference; Wealden District Association of Local Councils; Wealden Community Lottery; Cost of Living Strategy; Wealden Community Lottery and Tenants Together Housing Board.
- Equality, Diversity and Inclusion (EDI): The Council has an EDI plan which sets out a roadmap of the Council’s proposed approach to improving equality, diversity and inclusion over the four-year period (2024–2028).
- 5 Star Customer Service Standard: The Council is committed to delivering a 5 Star Customer Service Standard developed to identify and deliver best practice in all we do for our customers.
- Complaints: The Council has a clear and transparent procedure for dealing with complaints and aims to provide a positive complaint handling culture. The Council’s procedures comply with the LGSCO and HO complaint handling codes.
- Residents Consultation and Focus Groups on Local Government Reorganisation
- Annual Governance Statement (AGS): The AGS monitors, evaluates and identifies areas of future focus and improvement in relation to the Council’s governance arrangements.
- Public Meetings/ Webcasting: meetings are open to the public for all items apart from those exempt from publication and are normally livestreamed so all residents can view remotely.
- Public Participation: The public can attend meetings of the Council and its Committees (except where personal or confidential matters are being discussed), petition the Full Council, see reports and records of decisions made by the Council and Cabinet, inspect the Council’s accounts, ask questions to Members in accordance with the Council’s Procedure Rules and public speaking rights exist in relation to planning committees.
- Forward Plan: publication of a Forward Plan each month which sets out a list of key decisions (those incurring significant expenditure, savings or effect on communities) to be made by Cabinet or Individual Cabinet Members/Portfolio Holders during the next four months.
- Contracts Register: maintained by the East Sussex Procurement Hub.
- Tenant Involvement Strategy 2021-2026
Supporting Principles
- Defining Outcomes
- Sustainable economic, social and environmental benefits
- Determining interventions
- Planning interventions
- Optimising achievement of intended outcomes
How do we achieve this?
- Council Strategy: sets out the Council’s mission and priorities.
- The Council’s Constitution: see Principle A
- The Policy and Budget Framework: set out in the Council’s Constitution
- Performance Management Framework: the Council has developed a strong performance management culture across the organisation. A place-based performance management framework is a combination of activities, performance indicators and outcome measures that evidence how the Council’s work impacts on and improves the district’s infrastructure and environment and the lives of our residents.
- Risk Management and monitoring: See Principle F.
- Procurement and Social Value: Social value outcomes are embedded in all procurement. The East Sussex Procurement Hub is committed to providing Social Value within the delivery of its services and projects, where possible, for the benefit of the local communities. This is reflected in a Social Value Policy.
- Financial Planning: See Principle F.
- Forward Plan: See Principle B.
- Relevant Considerations: report templates and consultation processes ensure that all committee reports incorporate key information on factors such as legal, financial, resources which are used to identify areas of concern and plan required interventions.
Supporting Principles
- Developing the entity’s capacity
- Developing the capability of the entity’s leadership and other individuals
How do we achieve this?
- People Strategy: sets out the strategic Human Resources agenda on key cross-cutting strategic HR priorities.
- Learning and Development: The Council is committed to developing its staff by providing appropriate professional development and training opportunities. The Council operates a comprehensive induction and training programme for councillors and staff. All Officers are required to complete mandatory e-learning courses including health and safety, equalities and diversity, data protection and information governance. Officers and Councillors have access to a range of learning opportunities. It has locally been determined, in line with good practice, that mandatory training is provided for Members who sit on planning and licensing committees. Other member-led training is available and gives Members the opportunity to build on existing skills and knowledge in order to carry out their roles effectively.
- Performance Monitoring: the Council has an annual appraisal system which includes mid-year performance reviews. This allows for the assessment of workloads and performance and identification of development needs.
- Protocol for Member / Officer Relationships and Officer Scheme of Delegation: as set out in the Constitution.
- Code of Practice on Good Governance for Local Authority Statutory Officers: adopted and appended to Constitution.
- Monitoring Officer Protocol: adopted and set out in Constitution.
Supporting Principles
- Managing risk
- Managing performance
- Robust internal control
- Managing data
- Strong public financial management.
How do we achieve this?
- Risk Management: The Council has a Risk Management Policy and Framework which acknowledges that managing risk is the responsibility of everyone; it is at the heart of the council’s culture and values. It offers staff and members guidance to help ensure there is an effective, robust, consistent and communicated way of managing risk. It sets out the most significant corporate risks to the Council in the context of multiple risks identified and managed within each service area. It also alerts the Council to new or increasing risks that may impact our ability to serve our residents and wider community. The Corporate Risk Register is reported regularly to the Audit and Governance Committee and Cabinet. The Corporate Governance Group reviews the effectiveness of arrangements.
- Internal Audit: See Principle G.
- External Audit: External Audit work programme and statutory reporting.
- Audit and Governance Committee: monitors and reviews the effectiveness of the authority’s internal controls, risk management and financial reporting holds internal and external audit to account.
- Scrutiny and Performance Committee: includes a Budget Scrutiny Working Group to lead on scrutinising the Council’s budget and budget setting process.
- Financial Management: The council undertakes a “star chamber” approach to its budget setting and produces a Medium Term Financial Strategy (“MTFS”) which sets out how the Council will use its financial resources to meet the priorities identified within the Council Strategy. It draws together the strategic planning priorities, demand and resource forecasts and impact of the wider service delivery environment to produce a costed plan for the impact of proposed policies and plans on the medium term financial sustainability of the Council. This medium term financial planning process is critical to ensuring that the Council has an understanding of the likely level of available resources and the potential costs of delivering services, identifying budget shortfalls at the earliest opportunity to ensure appropriate action can be taken in advance. The council undertakes quarterly budget monitoring to monitor spend against planned budgets and its MTFS.
- Data Management: The Council has a designated data protection officer, a Senior Information Responsible Owner and a dedicated Information Governance team. There are clear and established processes for ensuring data is handled appropriately and ensuring compliance with Data Protection legislation.
- Performance Management: See Principles C and D.
Supporting Principles
- Implementing good practice in transparency
- Implementing good practices in reporting
- Assurance and effective accountability
How do we achieve this?
- Annual Governance Statement
- Transparency: publishing information in compliance with the requirements of the Local Government Transparency Code 2015
- External Audit: ensuring that recommendations made by external audit are acted upon.
- Internal Audit: Adds value to the organisation and its stakeholders by considering strategies, objectives and risks; strives to offer ways to enhance governance, risk management and control processes; and objectively provides relevant assurance. Provides an annual opinion on the adequacy and effectiveness of the Council’s framework of governance, risk management and control. Monitors and follows up on the implementation of recommendations agreed by management. Undertakes its work in accordance with the Global Internal Audit Standards (UK Public Sector).
- Place based performance monitoring: in support of the Council’s commitment to be open, honest and transparent with our residents, the Council has developed themed data portals to make information on performance complete, accessible, understandable and timely for a wider audience to reach.
- Information Governance: see Data Management under Principle F.
- Peer Review: The Council is committed to continuous improvement and is committed to learning and arising from external challenge such as via Local Government Association Peer Reviews.
- Public participation: See Principle B.
- Corporate Governance Group: consists of the statutory officers, the Internal Audit Manager and Investigations Manager and reviews, monitors, and advises on the Council’s corporate governance practices, processes, and procedures.
5. Monitoring the Framework
The effectiveness of the governance arrangements set out above will be considered during the preparation of the Annual Governance Statement.
The Annual Governance Statement will be reported to and approved by the Audit and Governance Committee. It will include a statement as to whether the governance arrangements are adequate and working effectively in practice or identify any significant gaps in the governance arrangements and if so, require an improvement plan to be prepared that details the action to be taken to address any weaknesses.
Once approved, the Annual Governance Statement will be published alongside the Statement of Accounts.