Issue - decisions

The Governance Group reported on requirements for the new authority to develop a local code of corporate governance and proposed actions to implement a local code.  Members considered and discussed in detail, a document tabled at the meeting setting out specific supporting principles, and specific requirements for the six core principles of good governance that should be reflected in authorities’ local codes

Members were advised that the annual governance statement (AGS) was the formal statement that records and publishes an authority’s governance arrangements.  It was noted that with effect from 2007/08 the production of the AGS had replaced the requirement for a specific statement of internal control.  The system of internal control was one of the key lines of enquiry for the use of resources assessment under CPA and would be retained under Comprehensive Area Assessment (CAA). To achieve a high rating under CAA, it was vital that a local code of corporate governance was in place to form the basis of the system of internal control.

The report set out and recommended a process to implement a local code and suggested areas of best practice should be identified not just across the Cheshire authorities, but nationally and be reflected in the code wherever possible, as follows:

1. Use the self-assessment schedule produced within the Framework, to identify the requirements which make up the code, together with the processes and documentation that provide evidence of compliance;
2. Identify the individuals or project teams which are responsible for the various elements within the code and obtain a position statement from them;
3. Identify issues that have not been addressed adequately and considering how they should be addressed;
4. Identifying the individuals who should be responsible for undertaking actions required and plan accordingly.

Officers were actively pursuing opportunities to meet with the Audit Commission to work with them to gain their views on best practice.  It was also noted that a local code of corporate governance would need to be in place by 1 April 2009. The AGS (including the system of internal control) should be included with the statement of accounts, which must be published by 30 June 2010.

Members referred to best practice in existing Cheshire Councils and the importance of good communication at all levels, including member level.  Training needs in this area should be given priority and Corporate Governance should be included on the Member Training Programme that was currently being developed.

RESOLVED 

1. To endorse the approach set out in the report.

2. To call for a report back on progress in due course with a view to adopting the local code before 31 March 2009.