West Dorset District Council: Local Code of Corporate Governance 2002
West Dorset District Council
Local Code of Corporate Governance
Introduction
Basic Principles of Good Governance
Local Code of Corporate Governance
§
Community Focus
§
Service Delivery Arrangements
§
Structures & Processes
§
Risk Management and Internal Control
§
Standards of Conduct
West Dorset District Council: Local Code of Corporate Governance 2002
Introduction
West Dorset District Council has a key role in leading and governing its local
communities, and as such is committed to the highest standards of corporate governance in
all its practices and processes. High standards of governance underpins credibility and
confidence in elected members and officers. The intention of this Code is to make
transparent to its stakeholders the Council’s commitment to the principles of good
corporate governance by providing open and explicit evidence of how these principles are
applied within the Council’s processes.
The Council is committed to engaging the community in the decisions it takes, upholding
the highest standards of probity and accounting openly to its stakeholders for its actions,
performance and outcomes.
This Local Code of Corporate Governance is based on the Chartered Institute of Public
Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives
and Senior Managers (SOLACE) Framework Corporate Governance in Local
Government: A Keystone for Community Governance. The Code is supported by the Local
Government Association and the Audit Commission. The Council has reviewed its existing
corporate governance arrangements against this Framework, has prepared and adopted this
Local Code and will ensure its practical application through regular assessment.
In addition, the Council will make an annual statement in its annual accounts and refer to it
in its Best Value Performance Plan on how we are complying with our Local Code, how
we have monitored its effectiveness during the year and any changes that we have planned
in the coming period.
West Dorset District Council: Local Code of Corporate Governance 2002
Basic Principles of Good Governance
The three fundamental principles of corporate governance (as defined by the Cadbury
Committee) are:
§
Openness and inclusivity
This ensures that all stakeholders have the opportunity to engage effectively in the
decision-making processes and activities of the Council and have access to full
accurate information; this therefore renders the Council subject to scrutiny in all of
its actions. This Council strives to ensure full transparency in all its actions and
dealings.
§
Integrity
Based on honesty, selflessness and objectivity, integrity requires the highest
standards of probity and propriety in the stewardship of the Council’s funds and all
aspects of its performance. West Dorset District Council has an effective control
framework and expects its officers and members to comply with national and
professional codes of conduct.
§
Accountability
West Dorset District Council, its officers and members, is responsible for all
decisions and actions taken on its behalf, including its stewardship of public funds
and all aspects of its performance. The Council has clearly defined all roles and
responsibilities and fully sets out all delegated functions.
Overarching these three principles is the concept of leadership. West Dorset District
Council is committed to providing a vision for its community, and ensuring that its
members and senior managers conduct themselves in accordance with the highest standards
of propriety and professionalism.
West Dorset District Council: Local Code of Corporate Governance 2002
1. Community Focus
West Dorset District Council is committed to working for and with its communities, exercising appropriate
leadership and endeavouring to promote the well-being of its area.
a)
b)
c)
d)
What?
How?
Where?
The Council will publish a bi-annual
report presenting an objective
understandable account of its: · Activities & achievements
· Financial position and performance
The
Council
will
produce
Community Link bi-annually, which
will contain articles on services and
activities, feedback from any
community survey, performance
measures for the year, and a
summary of accounts.
The Council will produce and
publish its statement of accounts
annually, and this will be available
in both electronic and paper format.
The Council will produce and
publish a Best Value Performance
Plan by 30 June each year. This will
contain performance figures, targets
for
improvement,
performance
against priority tasks and summaries
of completed reviews.
Community Link
The Council will publish an annual
performance plan presenting an
objective,
balanced
and
understandable
account
and
assessment of its: · Current performance in service
delivery
· Plans to maintain and improve
service quality
The Council has put in place proper
arrangements for the independent
review of the financial and operational
reporting processes
The Council has put in place proper
arrangements designed to encourage
individuals and groups from all
sections of the community to engage
with, contribute to and participate in
the work of the authority and put in
place
appropriate
monitoring
processes to ensure they continue to
work in practice
Annual Accounts
2000/01
Best Value
Performance Plan
Reports from the Audit Commission
are sent to Executive Committee for
information. Audit Commission
Inspectorate reports are sent to the
relevant Scrutiny Committee for
information.
The BV Performance plan sets out Best Value
the Council’s consultation statement. Performance Plan
The Council uses a ‘resident’s
panel’ to inform it’s decisionmaking process and assist with
service delivery. Two large panel
surveys are conducted every year,
aligned with statutory and BV
review requirements.
The Council also runs area forums,
which allow the public to discuss
issues of local importance with
officers and members.
In addition, the Council will
continue to engage the public, its
partners and its stakeholders with
reference to specific schemes and
projects.
The Council will produce a
West Dorset District Council: Local Code of Corporate Governance 2002
e)
f)
g)
The Council has made an explicit
commitment to openness in all their
dealings, subject only to the need to
preserve confidentiality in those
specific circumstances where it is
proper and appropriate to do so, and
by its actions and communications
deliver an account against that
commitment.
The Council will establish clear
channels of communication with all
sections of the community and other
stakeholders, and put in place proper
monitoring arrangements to ensure
that they operate effectively.
consultation
strategy
during
2002/03, to ensure that all sections
of the community are encouraged to
contribute to the strategic direction
and operations of the Council.
The Council’s Constitution sets out Constitution
its commitment to openness in its
dealings.
The Council publicises calendars of
meetings and circulates agenda
papers to the press.
The Council’s main channels of
external communication are through
its newsletter Community Link
which is delivered to every
household (planned to be produced 3
times a year), the internet, and press
releases/responses.
The Community Planning process
has also worked towards fostering
local partnerships and opening up
channels of communication.
In addition, service departments
communicate with their customers/
stakeholders individually. Internally,
the Council uses the Vine
newsletter, the intranet and emailing in order to communicate.
In order to formalise these measures,
the Council will produce an
overarching
corporate
communications strategy during
2002/03.
The Council has set down a
proposed process for arriving at a
vision for its local communities in
partnership with key stakeholders.
Community Link
www.westdorsetdc.gov.uk
West Dorset
Community Plan:
draft
Vine staff newsletter
How Do We Get
The Council will ensure that a vision
There?: Proposed
for local communities and their
Process for Vision
strategic plans, priorities and targets is
West Dorset
developed
through
robust
Community Plan:
mechanisms, and in consultation with
draft
the local community and other key
stakeholders, and that it is clearly A pilot scheme has been introduced Community
Planning: A Pilot
for the Dorchester area.
articulated and disseminated
Scheme for the
Dorchester Area.
West Dorset District Council: Local Code of Corporate Governance 2002
2. Service Delivery Arrangements
West Dorset District Council is committed to seeking continuous improvement in all its services.
a)
b)
c)
d)
e)
What?
How?
Where?
The Council sets standards and targets
for performance in the delivery of
services on a sustainable basis and with
reference to equality policies
The Council will put in place sound
systems for providing management
information
for
performance
measurement purposes.
Standards
and
targets
for
performance are set annually by
the Council and contained within
the Best Value Performance Plan.
Performance
information
is
reported
retrospectively
in
Community Link, in the full BVPP
and in the BVPP half year report.
Best Value
Performance Plan
The Council monitors and reports
performance against agreed standards
and targets and has developed
comprehensive and understandable
performance plans
The Council has put in place
arrangements to allocate resources
according to priorities.
The Council has fostered effective
relationships and partnerships with other
public sector agencies and the private
and voluntary sectors, and considered
outsourcing where it is efficient and
effective to do so. It has put in place
processes to ensure that they operate
effectively in practice.
The Council will develop and
implement a simple performance
management
system
during
2002/03
The
annual
Best
Value
Performance
Plan
reports
performance against targets and
standards for the year. The half
year report provides ongoing
performance information.
The Council will develop and
implement a simple performance
management
system
during
2002/03
The Council has developed a
formal framework for allocating
resources to priorities: the budget
strategy is set by the Executive
Committee, and the Overview and
Scrutiny Committees consider
spending proposals within the
constraints of that strategy. The
Budget Management Policy sets
down this procedure.
The Best Value Performance Plan
details priority tasks for the year.
Progress on these tasks is reported
in the half year plan.
The Council has a positive and
pragmatic attitude to partnership
working and is both receptive to
and proactively working towards
building
and
maintaining
relationships with other bodies.
The Council considers outsourcing
where it is efficient and effective
to do so; decisions regarding
Community Link
Best Value
Performance Plan
BVPP Half Year
Report
Best Value
Performance Plan
BVPP Half Year
Report
Budget Management
Policy Document
Best Value
Performance Plan
BVPP Half Year
Report
Procurement Strategy
West Dorset District Council: Local Code of Corporate Governance 2002
f)
The Council responds positively to the
findings and recommendations of
external
auditors
and
statutory
inspectors and put in place arrangements
for the effective implementation of
agreed actions
service delivery are informed by
the
Council’s
procurement
strategy.
Audit
Commission:
agreed
recommendations are absorbed
into workload. Followup of Audit
Commission recommendations is
factored into the audit plan.
Statutory
inspectors:
agreed
recommendations are absorbed
into workload. Followup of
recommendations is factored into
the audit plan.
Audit Commission
opinion
Audit Commission
Management Letter
Audit Plan
West Dorset District Council: Local Code of Corporate Governance 2002
3. Structures and Processes
West Dorset District Council has established effective political and managerial structures and processes to
govern decisionmaking and the exercise of authority within its organisation.
What?
a)
b)
c)
d)
e)
f)
Balance of Power and Authority
The Council has put in place clearly
documented protocols governing
relationships between members and
officers.
The Council has ensured that the
relative roles and responsibilities of
executive and other members,
members generally and senior
officers are clearly defined
Roles and Responsibilities - Members
Members of the Council meet on a
formal basis regularly to set the
strategic direction of the Authority
and to monitor service delivery
The Council has developed and
maintained a scheme of delegated or
reserved powers, which includes a
formal schedule of those matters
specifically reserved for the collective
decision of the Authority
The Council has put in place clearly
documented
and
understood
management processes for policy
development, implementation and
review and for decision making,
monitoring
and
control,
and
reporting; and formal procedural and
financial regulations to govern the
conduct of the Authority’s business.
The Council has put in place
arrangements to ensure that members
are properly trained for their roles and
have access to all relevant
information, advice and resource as
necessary to enable them to carry out
How?
Where?
The Constitution contains a Member/ Constitution
Officer protocol, produced by the
Monitoring Officer
The Constitution sets out the roles Constitution
and responsibilities of executive and
other members, members generally
and senior officers.
A schedule of regular meetings of all Calendar of Meetings
Committees and Council is agreed
annually in advance.
The Constitution contains a schedule Constitution
of delegated and reserved powers.
Processes are set out in the Constitution
Constitution: full Council sets the
policy framework, the Executive is
responsible for making day to day
decisions, in line with the Council’s
overall policies and budget, and the
Overview and Scrutiny Committees
produce
reports
and
recommendations to advise the
Executive, review and scrutinise the
performance of the Council.
The Constitution also sets out
detailed rules of procedure for full
council, committees, access to
information and officer employment
rules,
and
contains
financial
regulations policy framework.
A members induction pack is Members Induction
maintained by the Committee Admin Pack
team. This pack contains information
on key contacts, organisational and
political
management
structure,
forthcoming events, model code of
West Dorset District Council: Local Code of Corporate Governance 2002
their roles effectively
g)
The role of the executive members is
formally defined in writing, and
includes responsibility for providing
effective strategic leadership to the
Authority and for ensuring that the
Authority successfully discharges its
overall responsibilities for the
activities of the organisation as a
whole.
h)
The roles and responsibilities of all
members of the Council, together
with the terms of their remuneration
and its review, are defined clearly in
writing.
i)
j)
k)
conduct, the Constitution etc. The
Council also runs an annual
members’ seminar.
A full planned programme of
member training will be offered in
2003.
Member training on specific subjects Code of conduct for
councillors and
is provided.
officers: dealing with
planning matters
Constitution
Members’ access to information
rights are set out in the Constitution.
In addition, the Council has set up a
members’ home page on the intranet,
which provides instant access to
information.
The role of the Executive Committee Constitution
and its members is set out clearly in
the Constitution: to provide strategic
direction and recommend policy
frameworks to Council, and to have
responsibility for most day to day
decisions, carrying out all the
functions which are not the
responsibility of any other part of the
local authority.
The Constitution sets out in detail the Constitution
roles, functions and key tasks of
members.
Member allowances are clearly Members Allowances
defined and are set out in a leaflet.
The Authority established an
independent panel in 1999 in order to
review
members
allowances
annually.
Roles & Responsibilities: Officers
The Council’s Chief Executive is The chief executive’s responsibilities Constitution
responsible to the Authority for all as head of paid service and overall
operational manager are set out in the
aspects of operational management.
Constitution.
The Council’s Director of Corporate The Director of Corporate Resources Constitution
Resources is responsible to the has responsibility for ensuring that
Authority
for
ensuring
that the s151 functions are undertaken.
appropriate advice is given to it on all This is set out in the Constitution.
financial matters, for keeping proper
financial records and accounts, and
for maintaining an effective system of
internal control.
The Council’s Legal Services The Head of Legal Services was
West Dorset District Council: Local Code of Corporate Governance 2002
l)
m)
Manager is responsible to the
Authority for ensuring that agreed
procedures are followed and that all
applicable statutes, regulations and
other relevant statements of good
practice are complied with.
The roles and responsibilities of all
senior officers of the Council,
together with the terms of their
remuneration and its review, are
clearly defined in writing.
made Monitoring Officer with effect
from Apr 2001. This is set out in the
Constitution
Constitution.
The Council has adopted clear
protocols and codes of conduct to
ensure that the implications for
supporting
community
political
leadership for the whole council are
acknowledged and resolved.
Constitution
The roles and responsibilities of all
the senior officers are set out in the
Constitution and in their job
descriptions.
Senior officers pay is in line with that
recommended
by
the
Joint
Negotiating Committee for Chief
Officers of Local Authorities.
The Constitution contains a Member/
Officer protocol, which specifically
sets out guidelines for officer support
to members and party groups.
Constitution
Job descriptions
JNC for COs of LAs:
Annual Circular
West Dorset District Council: Local Code of Corporate Governance 2002
4. Risk Management and Internal Control
West Dorset District Council is striving to establish and maintain a systematic strategy, framework and
processes for managing risk.
a)
b)
What?
How?
The Council will develop a robust
system for identifying and evaluating
all significant risks which involve
the proactive participation of all
those associated with planning and
delivering services.
The Council will maintain a risk
management system
The Council has put in place
effective risk management systems,
including systems of internal control
and an internal audit function.
A risk management policy has been Risk Management
developed, and strategic and business Policy
risks have been identified by officers. Strategic Risk
working document
c)
Services are delivered by trained and
experienced people.
d)
The Council has put in place
effective arrangements for an
objective review of risk management
and internal control, including
internal audit.
e)
The Council maintains an objective
and professional relationship with its
Where?
An ongoing risk management system
will be agreed during 2002/03.
The council has a number of risk
minimisation/control procedures in
place: · Internal Audit
· Internal audit
Policy & plan
· Health & Safety
· Health & safety policy and
Policy
practices
· Insurance Policy
· Insurance policy & practices
· Personnel Policy
· Performance appraisal
· Financial
· Financial regulations
Regulations
· Review
· Best Value / service review
Programme
· Best Value
· Performance management
Performance Plan
reporting
& Half Year
Report
An ongoing risk management system
will be agreed during 2002/03, which
will collate these procedures.
The Authority has introduced a full Personnel Policy
programme of staff appraisal,
mandatory for all officers, which
ensures officers are aware of their
personal objectives, and identifies and
addresses all training needs in a
specific manner.
The Audit Commission review the Audit Commission
Council’s
risk
management Annual Management
arrangements (including internal Report
audit), and report annually to
members.
Internal audit review risk management Annual audit plan
and internal control annually.
From a Council perspective, there is
and
professional
an
objective
West Dorset District Council: Local Code of Corporate Governance 2002
f)
external auditors and statutory
inspectors.
The Council will publish on a timely
basis, within the annual report, an
objective,
balanced
and
understandable
statement
and
assessment of the Authority’s risk
management and internal control
mechanisms and their effectiveness
in practice.
relationship with its District Auditor
and Best Value Inspectors.
This will be included in Community
Community Link
Link in March 2003.
West Dorset District Council: Local Code of Corporate Governance 2002
5. Standards of Conduct
West Dorset District Council is committed to the highest standards of conduct in all its dealings. Members
and senior officers are expected to exercise leadership by conducting themselves as role models for others
within the Council to emulate, and by defining standards of personal behaviour applicable to all members
and staff.
a)
b)
What?
How?
The Council has developed and
adopted formal codes of conduct
defining the standards of personal
behaviour to which individual
members, officers and agents of the
Authority are required to subscribe
and put in place appropriate systems
and processes to ensure that they are
complied with.
West Dorset has adopted the model
code of conduct for members (as
issued in the Local Government Act
2000) in its Constitution. The model
officer code of conduct is awaited
(expected Feb 02), and will be
recommended for adoption.
An anti-fraud and corruption
strategy is in place, as is a
‘whistleblowing’ policy, both of
which have been communicated to
members and staff as applicable, and
are available on the intranet.
There is a formal complaints
procedure in place.
There are a number of arrangements
in place to ensure freedom from
prejudice, bias and conflicts of
interests for members and officers.
The primary document for members
is the model code of conduct, which
sets out obligations for elected
members.
In
addition,
the
Constitution separately sets out
principles for decision-making and
for
officer
recruitment
and
appointment.
Officers will be bound by the
officers’ code of conduct when it is
received, and by items such as the
financial regulations within the
Constitution.
It is the role of the Standards
Committee and Monitoring Officer
to ensure that member arrangements
happen
in
practice.
Officer
compliance with regulations are
monitored by Personnel and Internal
Audit.
In addition, the Council has revised
its Good practice guide for
councillors and officers dealing with
planning matters to address the
The Council has put in place
arrangements to ensure that members
and employees of the Authority are
not influenced by prejudice, bias or
conflicts of interest in dealing with
different stakeholders and put in place
appropriate processes to ensure that
they continue to operate in practice.
Where?
Constitution
Anti-Fraud &
Corruption Strategy
Whistleblowing
Strategy
Complaints
Procedure
Model Code of
Conduct
Constitution
Financial
Regulations:
Constitution
Personnel Policy
Internal Audit Policy
Good practice guide
for councillors and
officers dealing with
planning matters
West Dorset District Council: Local Code of Corporate Governance 2002
c)
d)
issues of predetermination and bias
in planning matters.
The model codes of conduct Model Code of
conform to appropriate ethical Conduct:
Constitution
standards.
See above re monitoring for
continuing compliance
The Council has put in place
arrangements to ensure that their
procedures and operations are
designed
in
conformity
with
appropriate ethical standards, and to
monitor their continuing compliance
in practice.
Put in place arrangements for A whistleblowing policy has been Whistleblowing
whistleblowing to which staff and all agreed and posted on the intranet, Policy
those contracting with the council and all staff notified.
have access