governance r cipfa solace framework 2007 · cipfa/solace consider that good governance leads to...

Audit and Quality Committee 3 September 2007

Agenda Item No.

Report by the Secretary

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GOVERNANCE REVIEW CIPFA / SOLACE FRAMEWORK 2007

INTRODUCTION

1. The Fire Authority at its meeting on 31st May 2007 approved a review of its

governance arrangements during 2007/8, so as to continually enhance its governance processes. The Audit & Quality and Standards Committees received reports in June 2007 in respect to the new CIPFA/SOLACE Governance Framework. This Framework will act as a catalyst for governance review in all Authorities. This Report sets out the key themes within the new Framework and proposes the means by which the Fire Authority may review its governance arrangements, in accordance with the framework and best practice. Members will also be aware of the new Framework from their nominating authority. CIPFA/SOLACE GOVERNANCE FRAMEWORK 2007

2. During mid June 2007 CIPFA (Chartered Institute of Public Finance and

Accountancy) and SOLACE (Society of Local Authority Chief Executives and Senior Managers) released a new Framework and Guidance upon delivering good governance.

3. The Guidance, to be used in conjunction with the Framework, is aimed at

assisting Fire Authorities (local authorities, police authorities, etc) to review their current governance arrangements.

4. The new Framework is a significant development from the previous 2001

Framework (Corporate Governance in Local Government). The key driver for the new Framework arises from the changes which have taken place in local government and to ensure authorities are equipped to face the challenges ahead, particularly to ensure that they possess fit for purpose structures.

5. The Framework defines the principles that should underpin the governance

of local government authorities. Authorities are ‘urged’ to test their structures against the principles set out in the Framework (see Appendix 1) by reviewing their existing governance arrangements, developing an up to date Code and preparing a governance statement accordingly.

6. CIPFA/SOLACE consider that good governance leads to good management,

performance, engagement, and outcomes for service users. The framework encourages Authorities to meet the standards of governance, which should not only be sound but be seen to be sound. The Audit Commission is currently reviewing the link between high standards of governance and strong performance, as part of its five strategic objectives.

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DEFINITION OF GOVERNANCE

7. There are a number of definitions of corporate governance in both the private corporate and public sectors.

8. The Guidance and Framework provide a brief refresher. Members will be

familiar with the Cadbury Code, followed by Greenbury, which lead to a first Combined Code in the private corporate sector. The Turnball report then arose, with further work produced by Higgs (role of non-executive directors) and Smith (Audit Committees), again leading to a new Combined Code. In tandem, Nolan produced (in 1995) the 7 principles of public life (which later became 10). (A further review on standards in public life was undertaken in 2005 by Graham). As Members are aware this led to Model Member Codes of Conduct as part of a more developed ethical framework and the first Framework produced by CIPFA/SOLACE.

9. In essence the new framework is intended to establish a common governance

standard for the public services, similar to the private corporate sector. 10. In broad terms, governance means sound decision making, with effective

processes in support, which improve accountability and engagement. 11. Good governance should enable an Authority to focus upon and achieve key

outcomes, deploying resources accordingly. Good governance does matter and the correlation between effective governance, corporate risk management, and performance, in the view of the Secretary, is clear.

12. In an Authority where good governance is demonstrable, the following will

be readily apparent:-

• Clear understanding of its purposes and outcomes • Well defined functions, responsibilities • Appropriate corporate culture • Robust and transparent decision making • Strong governance teams (and empathy) • Real accountability

13. Governance is described by CIPFA/SOLACE as being about how a body ensures that it is doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest and accountable manner. It comprises the systems and processes, and cultures and values by which the body is directed and controlled and through which they account to, engage with the community.

14. COMPLIANCE WITH THE NEW FRAMEWORK

In certain respects the Framework is voluntary and not overly perceptive. An effective Authority keeps under review its governance arrangements in any event. In fact it should be recorded that Humberside Fire Authority agreed to a review of its governance arrangements prior to the release of the new

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Framework. In addition, the Corporate Management Team also agreed to establishing governance protocols, again prior to the Framework. The Framework will now help to shape that work.

15. The Authority will be required in the production of the annual governance statement to meet the Accounts and Audit (Amendment) (England) Regs 2006, as part of the SIC (Statement of Internal Control). This is a supplemental requirement from 2007/8. As such the Framework requires an annual review, to be reported via the Audit and Quality Committee, to the Fire Authority, and through audit (internal and external).

16. A pro forma governance statement is provided, which the Authority will

consider in due course.

CIPFA/SOLACE CORE PRINCIPLES SUPPORTING GOVERNANCE

17. Attached at Appendix 1 are the 6 core supporting principles specified in the Framework. Each sets out specific further requirements and the Framework goes on to specify how a local code of governance will reflect those principles. It is primarily against these principles upon which it is proposed that a review is based.

18. It is also from these principles that the Guidance has distilled a series of self

assessment questions for Members to address (Appendix 2). 19. It should be added that, in the view of the Secretary, effective governance,

while being key to the proper functioning of the Authority itself, should be reflected throughout the organisation. As with corporate risk management, governance needs to be embedded (indeed corporate risk management underpins effective governance). As such, it is important to recognise that a governance review (and a governance statement) embraces all significant corporate systems and processes.

CARRYING OUT A REVIEW

20. The Guidance provides useful direction, but is not prescriptive as to how a

review should be conducted. It ‘urges’ that a review is carried out. 21. The Guidance provides a schedule to assist in putting the key governance

principles into practice, along with suggested self assessment tools. Most helpfully, the Guidance has set down a range of questions for Authorities to address. The questions are aimed predominantly at Members and can (and should) be adopted by the Executive (Senior Officers) of the Authority.

22. It is suggested that the proposed self review by Members (of the governance

of the Fire Authority) should run in tandem with a review conducted by the Executive (in respect to the Service), with the outcomes coming together in a report to the Authority (see below).

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23. It is therefore proposed that in order to review current corporate governance

arrangements, focus should be made upon:

(a) extent to which the Authority complies with the new Framework, having reviewed our existing Code (in part by Members having regard to their functions, and likewise the Executive). In particular, the 6 Core Principles will be tested;

(b) identifying systems/evidence of support; (c) identifying individuals and committees for monitoring, reviewing the systems, processes; (d) action plans going forward, which dovetail with other work around performance, corporate risk management and planning.

24. Paragraph 25 below outlines briefly the process proposed cumulating to a first report to the Fire Authority in December 2007. To assist Members, a suite of key documents will be created for ease of reference.

PROPOSED PROCESS OF REVIEW 25. The Secretary proposes the following for consideration: (a) Members adopt the draft questionnaire proposed at Appendix 3.

The questionnaire has been produced by the Secretary, based upon Appendix 2, amended to be bespoke to a Fire Authority and to bring added value to Humberside Fire Authority.

Consequently, it is therefore proposed that the initial tool of a self

review by Members will be the questionnaire followed by review by the full Fire Authority (via Committee). The use of self assessment questionnaires has been common in other areas of the public sector, with varying degrees of success. The questionnaire is perhaps longer than desirable, but a first governance questionnaire is often more lengthy, and will be refined over time, with focus upon action plans arising from subsequent reviews.

(b) In tandem, the Corporate Management Team will undertake a similar

self review based upon the six core themes. Members will note that CMT had already decided prior to the release of the Framework to establish protocols for internal governance. Members should also note that effective governance is a key item within the revised Corporate Risk/Opportunity Register.

(c) (a) and (b) will be undertaken during October 2007 and November

2007, which helpfully coincides with Internal Audit revisit in respective corporate governance.

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(d) It is anticipated that Members at either the December 2007 or January 2008 meeting of the Fire Authority will receive a report comprising proposals arising from (a) and (b), having first been considered via the Audit & Quality and Standards Committees (and internally through CMT).

(e) Arising from (d), any action plans shall be agreed at the February

meeting, including a fresh governance code and statement (as part of audit).

26. In respect to carrying out a governance review, as an addition or alternative to

that proposed, Members may wish to consider other options, such as:

• Special Meeting of the Fire Authority to consider the assessment questions;

• Appointing an external person to review or assist in the review of the governance arrangements;

• Establishing a Governance Sub Committee or Sub Group; • One to one meetings with either Secretary and/or Chief Fire Officer and

Chief Executive and/or the Chairperson; • Involving stakeholders and others in the review process.

27. The Secretary is of a view that it would be helpful to include a session within

the Member Development Day on 27th September 2007 to discuss the new framework in further detail (the framework was included in the induction of new Members). In addition, it would be beneficial if the December or January meeting of the Fire Authority could allocate a significant part of its agenda to the outcome of the governance review.

28. Members may also wish to consider seeking the views of those Members who

served during 2006/2007, given the number of new Members appointed to the Fire Authority in 2007.

OUTCOMES 29. The Fire Authority at its AGM in May, prior to the release of the new

Framework, had agreed to review its governance arrangements, as part of continuous improvement. That was not driven by any particular concern, but rather that a good Authority is proactive and a review during 2007/8 would be timely.

30. The Framework does not specify any outcomes as such, but clearly indicates

what should be reflected in a Governance Code. The point is well made that there ‘will need to be’ an open and honest self assessment. ‘It is inevitable that, where the process of review has been vigorous and robust, issues will be identified that the organisation will need to address. An organisation that sets out with the mistaken aim of achieving a clear statement, with no issues to report, risks creating a culture in which problems and concerns are supposed to avoid criticism. Moreover, the absence of any issues to report,

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rather than indicating a strong governance framework, may signal quite the reverse’.

31. From the perspective of HFA, the Authority has scored reasonably well with

regard to the CPA and as such the new governance framework provides a further basis to build upon our current governance arrangements.

32. In respect to likely outcomes, if the process above is adopted, at least during

2007/8, then it can be anticipated that recommendations will come forward with proposed actions, which continuously improve upon current arrangements. This work will be undertaken in conjunction with the review of standing orders and the committee structure which underpins the functioning of the Authority, and dovetails into other current work around performance and corporate risk management.

OWNERSHIP OF CORPORATE GOVERNANCE 33. Ultimately the Members of the Fire Authority are responsible for the proper

discharge of its functions, including the effectiveness of its governance arrangements. The Chief Fire Officer & Chief Executive, the Principal Officers, the Secretary, the Treasurer and other senior managers have key roles to play and comprise in effect a governance team. Separately audit (both internal and external) will have important review roles to play. In respect to structures, the Authority at its AGM created a new Member Champion position in respect to Corporate Governance, held by Councillor Barkworth (the Vice Chair of the Authority). The Audit & Quality and Standards Committees shall receive reports for consideration prior to the Fire Authority.

NEXT STEPS 34. This Report will go before the Fire Authority at its next meeting on 14th

September 2007. Given deadlines for reports, the views of the Audit & Quality Committee can be provided at the Fire Authority meeting. The Secretary will write to Members of the Standards Committee for their views in advance of that meeting. The governance review process will be determined by the Fire Authority.

ATTACHMENTS TO REPORT 35. Members will find attached the following:-

(a) Appendix 1 Governance Framework (b) Appendix 2 Extract from Guidance in respect to questions that Authorities should address (c) Appendix 3 Proposed Member Self Assessment Questionnaire (d) Appendix 4 Current Code of Governance

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FINANCIAL AND RESOURCE IMPLICATIONS 36. None arising directly.

EQUALITY IMPACT ASSESSMENTS 37. No direct actions arising, although equality included as an integral element of the governance review.

RISK MANAGEMENT 38. As specified within the Report.

RECOMMENDATION(S) 39. Members of the Audit and Quality Committee are asked to note and consider

this Report

R GRAHAM Officer Contact: Robin Graham 01482 567443 Secretary/Head of Law, Information & Administration Background Papers: Nil Humberside Fire & Rescue Service Headquarters Summergroves Way Kingston upon Hull RG/SJ 27 July 2007

Appendix 1

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Appendix 2

Appendix 3

Draft – Proposed Questionnaire

C O N F I D E N T I A L

HUMBERSIDE FIRE AUTHORITY

REVIEW OF GOVERNANCE ARRANGEMENTS

2007/2008

MEMBER QUESTIONNAIRE – SELF REVIEW

Robin Graham Secretary to Fire Authority

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Introduction As agreed by the Fire Authority, each Member of the Fire Authority is asked to complete the attached questionnaire as part of the process to review the current governance arrangements of the Authority. The self assessment questions are derived predominantly from the new CIPFA/SOLACE Governance Framework 2007. An additional section has been added, which will bring added value to the review agreed at the 31st May 2007 meeting of the Fire Authority. I apologise for the length of this questionnaire, which was always likely to be more lengthy in the first year of use (subsequent years will be modified and will focus upon continuous improvement and upon action plans created). It is important that every Member completes the questionnaire in as much detail as possible. Additional comments will be welcome. You may complete your form anonymously if you wish to do so. You may in addition wish to meet with myself and/or the Chief Fire Officer and Chief Executive. Should you have any queries kindly let me know. Robin Graham Secretary to Humberside Fire Authority Head of Law, Information and Administration September 2007

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A Good governance means focusing on the purpose of the Fire Authority and on outcomes for the community and creating and implementing a vision for the local area

1. How clear are you about what we are trying to achieve as a Fire Authority? Very clear Clear Uncertain Not clear

2. Do you always have this at the front of your mind when we are planning or taking decisions? Yes always Sometimes Occasionally Never Don’t know

3. How well is the Authority doing in achieving its intended outcomes?

Exceptional Well Adequately Poorly Very poorly

4. How well does the Authority communicate its vision to the community?

Exceptional Well Adequately Poorly Very poorly

5. To what extend does the information you have about the quality of service help you to make rigorous decisions about improving quality?

Comprehensively Largely Moderately Poorly Unsure

6. Does the Authority receive regular and comprehensive information on users’ views of the quality of the Fire Service?

Yes No Not sure How could this information be improved? _______________________________________________________________________________ _______________________________________________________________________________

7. How well does the Fire Authority understand the views of the public and stakeholders?

Comprehensively Largely Moderately Poorly Unsure 8. Do you receive comprehensive and reliable information about these views and does the Authority use

it in decision making?

Yes always Sometimes Occasionally Never Don’t know With regard to Section A, are there any additional comments that you would like to make in order to continue

to improve the functioning of the Fire Authority? _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

_______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

B Good governance means Members and Officers working together to achieve a common purpose with

clearly defined functions and roles

1. Does the Authority know what it is supposed to be doing? Yes always Sometimes Occasionally Seldom Not sure

2. Are the main functions clearly set out and do you understand your role as a Member?

Comprehensively Largely Moderately Poorly Not sure 3. Has the Authority formally agreed on the types of decisions that are delegated to the Executive and

those that are reserved for the Authority? Very clear Clear Uncertain Not clear

4. What impact do you think the size and complexity of our organisation means for the ways in which we approach the main functions of governance?

_______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________

5. Are the governance arrangements understood throughout the Authority? What efforts have been made to ‘demystify’ the concepts of governance? Have they been successful?

Comprehensively Largely Moderately Poorly Unsure

6. How clearly are the respective roles and responsibilities of Members and Senior Officers defined?

Very clear Clear Uncertain Not clear

7. Do you agree that all Members of the Authority take collective responsibility for its decisions?

Very Strongly Strongly Strongly Agree Agree Agree Disagree Disagree

With regard to Section B, are there any additional comments that you would like to make in order to continue

to improve the functioning of the Fire Authority? _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

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_______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ C. Good governance means promoting values for the Authority and demonstrating the values of good

governance through upholding high standards of conduct and behaviour 1. Do you consider that the behaviour, collectively as the Authority and individually, show that

responsibilities to the organisation and its stakeholders are taken very seriously?


2. Are there any ways in which behaviour might weaken the organisation’s aims and values?

Yes always Sometimes Occasionally Never Don’t know

Please give an instance where this may have occurred ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ 3. Does the Standards Committee act as the main means to raise awareness in respect to such values?

And does it take the lead in ensuring high standards of conduct are firmly embedded within the local culture?


4. Are you aware of the values that we expect the staff to demonstrate in their behaviour and actions?

Yes No Not sure

5. How well are these values reflected in approach to decision making by the Authority?

Comprehensively Largely Moderately Poorly Seldom

6. What more could the Authority do to ensure these values guide our actions and those of staff?

_______________________________________________________________________________ _______________________________________________________________________________ With regard to Section C, are there any additional comments that you would like to make in order to continue

to improve the functioning of the Fire Authority? _______________________________________________________________________________________ _______________________________________________________________________________________

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_______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ D. Good governance means taking informed and transparent decisions which are subject to effective

scrutiny and managing risk 1. How well do you think the Authority meetings work?

Exceptional Well Appropriately Poorly Very poorly 2. What could be done to make meeting productive and do our business more effectively? _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________

3. Is the quality of information received consistent?


4. To what extent does the information that the Authority receives in respect to costs and performance

help to make rigorous decisions about improving value for money?


5. How effectively does the Authority use this information when planning and taking decisions?


6. How well does the Authority understand how the value it provides compares with that of similar

organisations? Very clear Clear Uncertain Not clear Don’t know

7. Is this information (cost and performance) set out clearly and up-to-date? Yes always Sometimes Occasionally Never Don’t know

8. How effective is this as a guide to action for the Authority and the Executive?


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9. How well does the Authority explain the reasons for our decisions to all those who might be affected

by them?


10. Are decision-making processes properly adhered to?


11. Does the Authority maintain a key role in debating decisions? Yes always Sometimes Occasionally Never Don’t know

12. Do you think that the information received by all Members robust and objective and appropriate for

their needs? Yes always Sometimes Occasionally Never Don’t know

13. How could the information received be improved to help improve our decision making? _______________________________________________________________________________ _______________________________________________________________________________

14. Does the Authority take professional advice to inform and support our decision making when it is sensible and appropriate to do so?


15. The Authority has effective risk management processes?


16. Does the Authority review whether the risk management system is working effectively? Yes always Sometimes Occasionally Never Don’t know

_______________________________________________________________________________ _______________________________________________________________________________ With regard to Section D, are there any additional comments that you would like to make in order to continue

to improve the functioning of the Fire Authority? _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

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_______________________________________________________________________________________ E. Good governance means developing the capacity and capability of Members and Officers to be

effective

1. Have skills been identified that Members must have to do their jobs effectively? Yes No Not sure

2. How effective is the Authority at developing Member skills and updating our knowledge?

Exceptional Well Appropriately Poorly Very poorly

3. Do the political groups or nominating authorities review the performance of individual Members? Yes always Sometimes Occasionally Never Don’t know

4. Does the Authority put into practice action plans for improving our performance as an Authority? Yes always Sometimes Occasionally Never Don’t know

5. Does the Authority ensure Officers have the necessary skills to do their jobs? Are Officers adequately resourced?

Yes No Not sure

_______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ With regard to Section E, are there any additional comments that you would like to make in order to continue

to develop the capacity and capability of Members (and Officers)? _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

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F. Good governance means engaging with local people and other stakeholders to ensure robust public accountability

1. Are you clear as to who the Authority is accountable to and for what? Very clear Clear Uncertain Not clear

2. How well does each of these accountability relationships work?

Exceptional Well Appropriately Poorly Very poorly Not sure 3. Are any steps needed to clarify or strengthen any relationships? Yes No Not sure 4. How do we deal with competing demands and priorities from different sections of the community? Are

the processes we use effective?

Exceptional Well Appropriately Poorly Very poorly 5. Is there a clear policy on how the organisation should consult the public and service users? Yes No Not sure

_______________________________________________________________________________ _______________________________________________________________________________ 6. Is there a policy on consulting and involving staff and their representatives in decision making? Yes No Not sure 7. Is this policy communicated clearly to staff? How well do we follow this in practice?


8. There are effective systems within the organisation for protecting the rights of staff?


9. Members know who the institutional stakeholders are that we need to have good relationships with?

Yes No Not sure

10. How does the Authority organise itself to take the lead in developing relationships with other organisations at the most senior level?

_______________________________________________________________________________

_______________________________________________________________________________

11. How well does the Authority exercise ‘leadership’ for the Humberside Fire and Rescue Service?


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12. The Authority upholds and demonstrates the spirit and ethos of good governance that the Framework sets out to capture?


13. Does the Authority have a process for regularly reviewing our governance arrangements and practice against the Framework?

Yes No Not sure

14. What further improvements could the Authority make?

_______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________

15. Are we making public the results of our reviews and our plans for future improvements? Are we

inviting feedback from stakeholders and service users?

Yes No Not sure

With regard to Section F, are there any additional comments that you would like to make in order to continue

to improve the functioning of the Fire Authority? _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

_______________________________________________________________________________________

G. ADDITIONAL QUESTIONS

HUMBERSIDE FIRE AU ORITY THBESPOKE QUESTIONS

Functions of Humberside Fire Authority 1. Following Induction training, do you understand your role as a Member of the Fire Authority? Further Very clear Clear Uncertain Not clear induction required

2. Do you understand the role of the Executive (the boundaries of governance and management)? Very clear Clear Uncertain No 40

3. Do you know where to receive clarification from on your role? Yes No Not sure 4. Are your functions clearly set out? Yes No Not sure

5. Do you understand what functions are delegated to committees? Very clear Clear Uncertain Not clear

Communications 6. How well does the Authority communicate with the community and stakeholders?


7. How well does the Fire Authority communicate with staff?


8. How well does the Executive communicate with you?


9. What could we do better to communicate?

_______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________

10. What information and in what format would help you to exercise your role?

_______________________________________________________________________________ _______________________________________________________________________________

Meetings of the Fire Authority

11. What could be done to make meetings of the Authority more productive/effective?

_______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________

12. Is the agenda content strategic enough? Yes No Not sure

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13. Do you consider that the Fire Authority simply rubber stamps matters?


Advice at hand

14. Do you feel that you receive sufficient advice in respect to the following:-

Yes No Not sure

Finance/capital

Legal

Governance

HR

Corporate Risk Management

Operations

Strategic

Performance Reports

15. Do you receive reports in a timely manner?


16. Are reports clear? Very clear Clear Uncertain Not clear

17. Are the reports too long, too much paper and not succinct and informative? Yes No Sometimes

18. What would assist you further?

_______________________________________________________________________________

_______________________________________________________________________________ _______________________________________________________________________________

_______________________________________________________________________________

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Decision Making

19. Is it clear when you are asked to make a decision? Yes always Sometimes Occasionally Never Don’t know

20. Does the Fire Authority challenge the Executive? Yes always Sometimes Occasionally Never Don’t know

21. Do Members take collective responsibility for decisions? Yes always Sometimes Occasionally Never Don’t know Timing of Meetings

22. Do you think the timing of meetings could be improved or are there other ways in which the arrangements could be improved?

_______________________________________________________________________________

_______________________________________________________________________________

Induction of New Members

23. Do you think the Induction of new Members has been timely and effective?


Conduct

24. Are there any ways conduct/behaviour currently weakens the functioning of the Authority or could be improved?

_______________________________________________________________________________

_______________________________________________________________________________

(how would this be remedied?) 25. Do you understand the Code of Conduct?


26. Do you understand the Core Values of the Fire Service? Very clear Clear Uncertain Not clear

Committee throughput 27. Do you feel that you receive sufficient information from the sub committees of the Fire Authority?


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28. A review of the Committee structure has been agreed for 2007. The Secretary is of a preliminary view that the role of Audit/Risk Management and finance should be separated, with a strategic planning/resources committee. The intention is to put in place a balanced, effective and efficient committee structure, which supports the functioning of the Authority.

Have you any preliminary views upon this? _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

Appointment of Members

29. Fire Authority Members are appointed by constituent authorities on an annual basis. Do you think there would be some benefit in requesting constituent authorities to adopt a system, where possible, which balances continuity and rotation? Perhaps if constituent authorities were to appoint Members for a term of office, say 3 to 4, with say 2 terms of office?

_______________________________________________________________________________

_______________________________________________________________________________

Briefings

30. How well briefed do you feel about matters relating to the Fire Authority?

Very Well Well Fairly Well Not Well At All

31. Would you welcome:

A named contact other than Secretary or Chief Fire Officer & Chief Executive

More general newsletters

More briefings

More informal gatherings

More opportunities to visit local fire stations

More opportunities to meet staff

Greater access to the intranet

A Member website

A clear role map

32. What skills do you think could be developed further for the Fire Authority?

_______________________________________________________________________________

_______________________________________________________________________________

33. Do you think that the Fire Authority provides sufficient leadership? Yes always Sometimes Occasionally Never Don’t know 44

34. Do you think the Fire Authority provides a forum to constructively challenge the Executive?


35. Do you have sufficient awareness of the Strategic Plan? Yes No Not sure

36. Do you feel that the Authority monitors performance? Yes always Sometimes Occasionally Never Don’t know

37. Is the role of the Chairperson understood? Yes No Not sure

38. Is the role of the Secretary to Fire Authority understood? Yes No Not sure

39. Do you feel that sufficient time is spent upon significant issues? Yes always Sometimes Occasionally Never Don’t know

40. Do you feel that there is too much bureaucracy?


41. Is the Fire Authority sufficiently aware of corporate risks?


42. Does the Fire Authority use the corporate risk register to inform decision making?


43. How do you consider Fire Authority decisions are monitored and implemented? Very clear Clear Uncertain Not clear

44. Are you aware of the Humberside Fire Authority Code of Corporate Governance?

Yes No Not sure

45. Would you consider value in adding to the Fire Authority non-executive Members, where for example, a skills gap may exist?


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_______________________________________________________________________________

_______________________________________________________________________________ 46. Would you consider that there may be some value in adding to the Audit Committee expertise of an

auditor/financial matters, as a co-opted Member?


_______________________________________________________________________________

_______________________________________________________________________________ 47. Do you think that the culture of the Authority enables effective decision making, regardless of political

groupings? Yes No Not sure Having had an opportunity to review the Framework and Guidance, are there any areas which you feel the

Authority could change, improve or introduce in order to build upon the current governance arrangements? _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

_______________________________________________________________________________________

Any final comments

_______________________________________________________________________________________ _______________________________________________________________________________________ _______________________________________________________________________________________

_______________________________________________________________________________________ Many thanks

Name: _____________________________________________

Date: _____________________________________________

Please return to Robin Graham, Secretary to Fire Authority/Head of Law, Information and Administration in the Freepost envelope provided.

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Appendix 4


STANDING ORDERS

75(a) Democrat_CR/fireauth/sorders3May05.doc/js/kh

APPENDIX G


CODE OF CORPORATE GOVERNANCE 1. INTRODUCTION 1.1 Humberside Fire Authority is committed to the highest standards of governance. 1.2 The Authority is responsible for ensuring that its business is conducted in accordance

with the law and proper standards and that public money is safeguarded and properly accounted for and used economically, efficiently and effectively.

1.3 In discharging the responsibility Members and Officers are responsible for putting in

place proper arrangements for the governance of the Authority’s affairs and the stewardship of resources available.

1.4 The Authority has approved and adopted this code of corporate governance, which is

consistent with the principles and reflects the requirements of the CIPFA/Solace Framework ‘Corporate Governance in Local Government’.

2. DEFINITIONS 2.1 Corporate Governance about how an Authority directs and controls its functions and

relates to its community. It is the way in which the Fire Authority conducts itself so as to (a) deliver effective Community Protection and Emergency Intervention to the Communities it serves and (b) provide and openly demonstrate efficient stewardship of public funds.

3. PRINCIPLES OF CORPORATE GOVERNANCE 3.1 The Authority is committed to the fundamental principles that underpin good

governance, which are:- • Accountability; • Effectiveness; • Integrity; • Openness & Inclusivity; and, • Up to date.

3.2 The principles are defined as follows:–

• Accountability is the process whereby the Authority and Officers are responsible for their decisions and actions, including their stewardship of public funds and all aspects of performance and submit themselves to appropriate external scrutiny. It is achieved by all parties having a clear understanding of those responsibilities and having clearly defined roles through a robust structure.

• Integrity comprises both straightforward dealing and completeness. It is based

upon honesty, selflessness and objectivity, and high standards of propriety and

Democrat_CR/fireauth/sorders3May05.doc/js/kh 76

probity in the stewardship of public funds and management of the Authority’s affairs. It is dependent on the effectiveness of the control framework and on the personal standards and professionalism of the Members and Officers within the Authority and Humberside Fire and Rescue Service employees. It is reflected in the Authority’s decision-making procedures, in its service delivery and in the quality of its financial and performance reporting.

• Openness is required to ensure that stakeholders can have confidence in the

decision-making and management processes of the Authority and in the approach of the individuals within it. Being open through genuine consultation with stakeholders and providing access to full, accurate and clear information leads to effective and timely action and lends itself to necessary scrutiny. Openness also requires an inclusive approach, which seeks to ensure that all stakeholders and potential stakeholders have the opportunity to engage effectively with the decision-making processes and actions of the Authority. It requires an outward focus and a commitment to partnership working. It calls for innovative approaches to consultation and to service provision.

In order to ensure that these principles permeate service delivery arrangements, the Fire Authority commits to: • Monitor their effectiveness in practice; and • Review and keep up to date Corporate Governance arrangements.

4. DIMENSIONS OF CORPORATE GOVERNANCE

4.1 Community Focus

4.1.1 The Authority, by carrying out its general and specific duties and responsibilities, will:-

• work for and with the community;

• exercise leadership in the local community, where appropriate; and,

• undertake an ‘ambassadorial’ role to promote the well-being of the area, where

appropriate.

4.1.2 The Authority will maintain effective arrangements -

• for explicit accountability to stakeholders for the Authority’s performance and its effectiveness in the delivery of services and the sustainable use of resources;

• to demonstrate integrity in the Authority’s dealings in building effective

relationships and partnerships with other public agencies and the private/voluntary sectors;

• to demonstrate openness in all its dealings; • to demonstrate inclusivity by communicating and engaging with all sections

of the community to encourage active participation; and,


• to develop and articulate a clear and up to date vision and corporate strategy

in response to community needs.

4.1.3 The Authority’s current arrangements to ensure community focus include -

• publishing on a timely basis financial statements which give an understandable account of the Authority’s financial position and performance;

• publishing on a timely basis a performance plan presenting an objective,

balanced and understandable account and assessment of the Authority’s current performance in service delivery and its plans to maintain and improve service quality;

• arrangements for the independent review of the financial and operational

reporting processes through the audit and inspection process; • participation in local strategic partnership with partners from the private,

public and voluntary sectors to encourage individuals and groups from all sections of the community to engage with, contribute to and participate in the work of the Authority;

• establishing through its Standing Orders an underlying principle to make as

much information as possible public, through a system of open reports with separate annexes of exempt information wherever possible;

• developing a communication strategy to ensure clear channels of

communications with all sections of the community and other stakeholders; and,

• participation in local strategic partnerships to develop strategies, setting out

priorities and targets in consultation with local communities and other key stakeholders and ensuring that they are clearly articulated and disseminated.

4.2 Service Delivery Arrangements

4.2.1 The Authority will ensure that continuous improvement is sought, agreed policies are

implemented and decisions carried out by maintaining arrangements which - • discharge its accountability for service delivery at a local level; • ensure effectiveness through setting targets and measuring performance; • demonstrate integrity in dealing with service users and developing

partnerships to ensure the ‘right’ provision of services locally; • demonstrate openness and inclusivity through consulting with key

stakeholders, including service users; and, • are flexible so that they can be kept up to date and adapted to accommodate

change and meet user wishes.


4.2.2 The Authority -

• sets standards and targets for performance in the delivery of services; • has systems in place for providing management information to measure and

monitor performance; • monitors and reports performance against agreed standards and targets to all

stakeholders through the Best Value Performance Plan; • through its budget process allocates resources according to priorities; • through local strategic partnerships the Authority aims to foster effective

relationships and partnerships with other public sector agencies and the private and voluntary sectors, and considers outsourcing where it is efficient and effective to do so, in delivering services to meet the needs of the local community; and,

• responds positively to the findings and recommendations of external auditors

and statutory inspectors and puts in place arrangements for the effective implementation of agreed actions.

4.3 Structures and Processes

4.3.1 The Authority will establish effective political and managerial structures and

processes to govern decision-making and the exercise of authority within the organisation and will -

• define the roles and responsibilities of Members and Officers to ensure

accountability, clarity and good ordering of the Authority’s business; • ensure that there is proper scrutiny and review of all aspects of performance

and effectiveness; • demonstrate integrity by ensuring a proper balance of power and authority; • document clearly such structures and processes and ensure that they are

communicated and understood to demonstrate openness and inclusivity; and, • ensure such structures and processes are kept up to date and adapted to

accommodate change.

4.3.2 The Authority has -

• clearly documented protocols governing relationships between Members and Officers which are set out in its Standing Orders;

• documented the relative roles and responsibilities of Members generally and

Officers;


• a scheme of delegated or reserved powers, which includes a formal schedule of those matters specifically reserved for the collective decision of the Authority;

• 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;

• put in place arrangements to ensure that Members are properly trained for their

roles and have access to all relevant information, advice and resources necessary to enable them to carry out their roles effectively;

• defined clearly in writing the roles and responsibilities of all Members of the

Authority, together with the terms of their remuneration and its review; • made the Chief Fire Officer & Chief Executive responsible to the Authority

for all aspects of operational management; • made the Treasurer responsible to the Authority for ensuring that appropriate

advice is given to it on all financial matters, for keeping proper financial records and accounts, and for maintaining an effective system of internal financial control;

• made the Secretary 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;

• defined clearly in writing the roles and responsibilities of all Officers, together

with the terms of their remuneration and its review; and, • adopted clear protocols and codes of conduct to ensure that the implications

for supporting community political leadership for the Authority are acknowledged and resolved.

4.4 Risk Management and Internal Control

4.4.1 The Authority has established and maintains a systematic strategy, framework and

processes for managing risk which -

• include making public statements to stakeholders on the Authority’s risk management strategy, framework and processes to demonstrate accountability;

• include mechanisms for monitoring and reviewing effectiveness against

agreed standards and targets and the operation of controls in practice; • demonstrate integrity by being based on robust systems for identifying,

profiling, controlling and monitoring all significant strategic and operational risks;

• display openness and inclusivity by involving all those associated with

planning and delivering services, including partners; and,


• include mechanisms to ensure that the risk management and control process is

monitored for continuing compliance to ensure that changes in circumstances are accommodated and that it remains up to date.


• has developed and maintains robust systems for identifying and evaluating all

significant risks which would prevent the Authority meeting its objectives; • has arrangements for Internal Audit and internal control procedures to ensure

compliance with all applicable statutes, regulations and relevant statements of best practice and that public funds are properly safeguarded and are used economically, efficiently and effectively, in accordance with the statutory and other authorities that govern their use;

• reviews the effectiveness of its arrangements for risk management and internal

control, including internal audit; • maintains an objective and professional relationship with their external

auditors and statutory inspectors; and,

• will publish within its financial statements and best value performance plan an objective, balanced and understandable statement and assessment of the Authority’s risk management and internal control mechanism and their effectiveness in practice.

4.5 Standards of Conduct

4.5.1 The openness, integrity and accountability of individuals within the Authority form

the cornerstone of effective corporate governance. The reputation of the Authority depends on the standards of behaviour of everyone in it, whether Members, Officers, Humberside Fire and Rescue Service employees or agents contracted to it.

4.5.2 Therefore, Members and Officers of the Authority and Humberside Fire and Rescue

Service employees will -

• exercise leadership by conducting themselves as role models for others within the Authority to follow;

• define the standards of personal behaviour that are expected from Members

and Officers and all those involved in service delivery and put in place arrangements to ensure -

- accountability, through establishing systems for investigating breaches and disciplinary problems and taking action where appropriate, including arrangements for redress.

- effectiveness in practice through monitoring their compliance. - that objectivity and impartiality are maintained in all

relationships to demonstrate integrity.



- that such standards are documented and clearly understood to display openness and inclusivity and are reviewed on a regular basis to ensure that they are kept up to date.


• has adopted formal codes of conduct defining the standards of personal

behaviour to which individual Members, Officers, Humberside Fire and Rescue Service employees and agents of the Authority are required to subscribe and put in place appropriate systems and processes to ensure that they are complied with.

• has put in place standing orders and financial regulations to ensure that

Members, Officers and Humberside Fire and Rescue Service employees are not influenced by prejudice, bias or conflicts of interest in dealing with different stakeholders.

• has put in place arrangements for ‘Whistle-Blowing’ to which all Officers and

Humberside Fire and Rescue Service employees have access.

5. Corporate Governance in Action 5.1 The majority of the elements of corporate governance set out above are already in

place.

5.2 The Authority will monitor and review the arrangements in place within the Authority to meet and demonstrate compliance with the code on an ongoing basis to ensure they are effective, up to date, meet the requirements of the CIPFA/SOLACE guidance and reflect best practice.

5.3 The Authority will have the independent verification of the findings from the on-going self-assessment of the code and the extent of compliance with it.

5.4 The Authority will report annually through its financial statements and the Best Value Performance Plan on compliance with the code.

governance r cipfa solace framework 2007 · cipfa/solace consider that good governance leads to...

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