delivering good governance

120 Pages·2016·1.1 MB·English

delivering good
governance
in Local Government
Guidance Notes for English Authorities
2016 Edition
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in
public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major
accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed.
As the world’s only professional accountancy body to specialise in public services, CIPFA’s qualifications are the
foundation for a career in public finance. We also champion high performance in public services, translating our
experience and insight into clear advice and practical services. Globally, CIPFA shows the way in public finance
by standing up for sound public financial management and good governance.
CIPFA values all feedback it receives on any aspects of its publications and publishing programme. Please
send your comments to [email protected]
Solace, the Society of Local Authority Chief Executives and Senior Managers, is the representative body
for senior strategic managers working in the public sector. We are committed to public sector excellence.
We provide our members with opportunities for personal and professional development and seek to
influence the debate about the future of public services to ensure that policy and legislation reflect the
experience and expertise of our members.
delivering good
governance
in Local Government
Guidance Notes for English Authorities
2016 Edition
DELIVERING GOOD GOVERNANCE IN LOCAL GOVERNMENT: GUIDANCE NOTES FOR ENGLISH AUTHORITIES \ 2016 EDITION
This Delivering Good Governance in Local Government: Guidance Notes for English
Authorities includes extracts from International Framework: Good Governance in
the Public Sector, copyright © 2014 by IFAC and CIPFA. Used with permission. All
rights reserved.
Published by:
CIPFA \ THE CHARTERED INSTITUTE OF PUBLIC FINANCE AND ACCOUNTANCY
77 Mansell Street, London E1 8AN
020 7543 5600 \ [email protected] \ www.cipfa.org
© April 2016 CIPFA
ISBN 978 1 84508 455 4
Designed and typeset by Ministry of Design, Bath
(www.ministryofdesign.co.uk)
No responsibility for loss occasioned to any person acting or refraining from action
as a result of any material in this publication can be accepted by the authors or
publisher.
While every care has been taken in the preparation of this publication, it may
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1988, this publication may be reproduced, stored or transmitted, in any form or
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Acknowledgements
THE WORKING GROUP
CIPFA and Solace are grateful to the following members of the Joint Working Group for their
time and assistance in preparing this document.
Members
Julie Parker (Chair) Non-executive Director and Independent Consultant
Charlie Adan Babergh District Council/Mid Suffolk District Council
David Aldous National Audit Office (NAO)
Ivan Butler Denbighshire County Council
Brenda Campbell Convention of Scottish Local Authorities (COSLA)
Kirsty Cole Newark and Sherwood District Council/Lawyers in Local
Government (LLG)
Richard Feltham Kent Fire and Rescue Service
Russell Frith Audit Scotland
Alan Gay Leeds City Council
Alan Geddes formerly Highland Council
Stephen Hughes/Sarah Pickup Local Government Association (LGA)
Ruth Hyde Broxtowe Borough Council
Graeme McDonald Solace
Cat McIntyre Association of Police and Crime Commissioners (APCC)
Jacqui McKinlay Centre for Public Scrutiny (CfPS)
Terry Osborne Essex County Council
Marion Pryor Conwy County Borough Council
Jon Rae Welsh Local Government Association (WLGA)
Joe Simpson Leadership Centre for Local Government
Mike Suarez Cheshire East Council
Jason Vaughan West Dorset District Council/Weymouth and Portland
Borough Council
Bill Wilkinson CIPFA’s Police Panel/Police and Crime Commissioners
Treasurers’ Society (PACCTS)
Ian Williams London Borough of Hackney
Ness Young Bridgend County Borough Council
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DELIVERING GOOD GOVERNANCE IN LOCAL GOVERNMENT: GUIDANCE NOTES FOR ENGLISH AUTHORITIES \ 2016 EDITION
Secretariat
Kerry Ace (Secretary) CIPFA
Diana Melville CIPFA
Rachael Tiffen CIPFA
Observer
Shehla Husain Department for Communities and Local Government (DCLG)
CIPFA would like to thank the authorities that have kindly supplied us with case study
material.
Solace, the Society of Local Authority Chief Executives and Senior Managers, is the
representative body for senior strategic managers working in the public sector. We are
committed to public sector excellence. We provide our members with opportunities for
personal and professional development and seek to influence the debate about the future of
public services to ensure that policy and legislation reflect the experience and expertise of
our members.
This Delivering Good Governance in Local Government: Guidance Notes for English Authorities
includes extracts from International Framework: Good Governance in the Public Sector,
copyright © 2014 by IFAC and CIPFA. Used with permission. All rights reserved.
Page iv
Preface
These guidance notes relate to Delivering Good Governance in Local Government: Framework
(CIPFA/Solace, 2016) which is intended to be used as best practice for developing and
maintaining a locally adopted code of governance.
These guidance notes are intended to assist local authorities and associated organisations
and systems – combined authorities, joint boards, partnerships and other vehicles through
which authorities now work – in reviewing the effectiveness of their own governance
arrangements by reference to best practice and using self-assessment.
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DELIVERING GOOD GOVERNANCE IN LOCAL GOVERNMENT: GUIDANCE NOTES FOR ENGLISH AUTHORITIES \ 2016 EDITION
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Contents
CHAPTER ONE: INTRODUCTION ...............................................................................................................................1
DELIVERING GOOD GOVERNANCE IN LOCAL GOVERNMENT: RELATIONSHIP WITH THE FRAMEWORK ..1
PURPOSE OF THE GUIDANCE NOTES ...................................................................................................................2
TERMINOLOGY ........................................................................................................................................................3
CHAPTER TWO: THE ‘GOVERNING BODY’ IN A LOCAL AUTHORITY .....................................................................5
INTRODUCTION .......................................................................................................................................................5
RESPONSIBILITIES .................................................................................................................................................5
CHAPTER THREE: WORKING IN PARTNERSHIP .....................................................................................................7
INTRODUCTION .......................................................................................................................................................7
COMBINED AUTHORITIES AND DEVOLUTION ....................................................................................................7
CASE STUDIES .........................................................................................................................................................8
EMBEDDING THE PRINCIPLES OF GOOD GOVERNANCE IN PARTNERSHIPS ..............................................18
SHARED CHIEF EXECUTIVES AND MANAGEMENT TEAMS – QUESTIONS TO CONSIDER ..........................22
CHAPTER FOUR: PRACTICAL EXAMPLES AND CASE STUDIES ...........................................................................27
CASE STUDIES FROM LOCAL GOVERNMENT ....................................................................................................27
CASE STUDIES FROM OTHER SECTORS .............................................................................................................38
ANNUAL GOVERNANCE STATEMENTS................................................................................................................47
EMBEDDING GOOD GOVERNANCE – GENERAL POINTS..................................................................................52
USE OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ............................................................53
CHAPTER FIVE: SCHEDULE TO ASSIST IN PUTTING THE PRINCIPLES INTO PRACTICE ................................55
CHAPTER SIX: OTHER GOVERNANCE ISSUES .......................................................................................................79
SCRUTINY ..............................................................................................................................................................79
FRAUD ....................................................................................................................................................................83
MAINTAINING STANDARDS ................................................................................................................................85
LOCAL AUDIT AND AUDIT COMMITTEES ..........................................................................................................87
APPENDIX A: COMPARISON WITH FRAMEWORK PUBLISHED IN 2007 ............................................................93
APPENDIX B: PRINCIPLES OF GOOD GOVERNANCE (SUMMARY) ......................................................................97
THE CADBURY REPORT (1992) ...........................................................................................................................97
REPORTS FROM THE COMMITTEE ON STANDARDS IN PUBLIC LIFE (1995 – PRESENT) ..........................97
GOOD GOVERNANCE STANDARD FOR PUBLIC SERVICES (2004) ..................................................................98
INTERNATIONAL FRAMEWORK: GOOD GOVERNANCE IN THE PUBLIC SECTOR (2014) ............................99
APPENDIX C: GLOSSARY........................................................................................................................................101
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