audit and performance review committee ......2.2 a key part of the authority’s governance...

NORTH YORKSHIRE FIRE AND RESCUE AUTHORITY

AUDIT AND PERFORMANCE REVIEW COMMITTEE

27th APRIL 2010

REPORT OF THE DIRECTOR CORPORATE SERVICES

ANNUAL GOVERNANCE STATEMENT

1. Purpose of Report

To seek approval to the 2009/2010 Annual Governance Statement

2. Background

2.1 As the Committee will be aware, since 2007/2008, the Authority has been required

to produce an Annual Governance Statement for approval by the Authority and inclusion in the Statement of Final Accounts.

2.2 A key part of the Authority’s Governance Framework is the Local Code of Corporate

Governance, consideration of which falls to this Committee rather than the full Authority under the Committee’s revised terms of Reference.

2.3 In previous years there have been separate reports to the Committee regarding the

Statement and monitoring of the compliance with the Local Code of Corporate Governance. Earlier reports have noted the close relationship between, and in some instances duplication of the two reports. For 2009/2010, following consistently good external reports on the Authority’s governance arrangements, it was felt that the burden of reporting on Members could be usefully further reduced by merging consideration of the two items.

2.4 Accordingly this report looks first at the outcome of the monitoring of the Local

Code before moving to consideration of the draft Annual Governance Statement. 3. The Local Code of Corporate Governance 3.1 The operation of the local code is subject to regular monitoring both internally and

by external review agencies and through the Authority’s reporting arrangements. The results of those reviews need to be drawn together and considered by the Committee with recommendations made to the Authority where necessary in the event of substantive non compliance with the Code.

3.2 The Code concentrates on six “Core Principles” with which any local authority should

be able to demonstrate compliance. They are

A focus on the purpose of the Authority and on outcomes for the community and the creation and implementation of a vision for the local area

Members and officers work together to achieve a common purpose with clearly defined functions and roles


The promotion of values for the Authority and demonstration of the values of good governance through the upholding of high standards of conduct and behaviour

The taking of informed and transparent decisions which are subject to effective scrutiny and risk management

Developing the capacity and capability of members and officers to be effective

Engaging with local people and other stakeholders to ensure robust public accountability.

3.3 The six core principles are re‐inforced with a suite of supporting principles which

have been included in the monitoring document and form the basis of the review. Details are attached at Appendix A. Comment and Review dates have only been included where thought necessary and required.

3.4 Whilst the monitoring and review of the Code offers no qualitative assurance, no

instances of substantive non compliance with the Code have been found. 4. The Annual Governance Statement 4.1 A draft copy of the Statement for 2009/2010 is attached at Appendix B, including the

Statement of Assurance from the Internal Auditor issued 14th April that the Authority’s control systems offered substantial assurance. Appendix C provides a matrix of evidence which has been considered by the Senior Management team.

4.2 The matrix is based on guidance issued by the Finance Advisory Network of the

Chartered Institute of Public Finance and Accountancy which meets the requirements of the Accounts and Audit (Amendment)(England) Regulations 2006 and from which the requirement to produce an Annual Governance Statement is derived.

4.3 It is this matrix which provides the assurance which both this Committee and the

External Auditor need to substantiate the Statement itself which will be signed by the Chair of the Authority, the Chief Fire Officer/Chief Executive and Treasurer and included in the Statement of Accounts for 2009/2010.

4.4 Taken together with the Local Code of Corporate Governance, as things stand, and

broadly speaking, the Authority can rely on its current internal control arrangements.

4.5 Following consideration by this Committee and the incorporation of any views that

Members may have, it is proposed that the Committee recommends the Authority to approve the Annual Governance Statement and include it as part of the Statement of Final Accounts.


5. Recommendations

That the Committee

i) note the outcome of the 2009/2010 Monitoring exercise

ii) recommend the Authority to approve the Annual Governance Statement and include it as part of the Statement of Final Accounts.

I R YOUNG Director Corporate Services Contact Officer e-mail: [email protected] Telephone: 01609788505

mailto:[email protected]

APPENDIX A ‐ LOCAL CODE OF CORPORATE GOVERNANCE – COMPLIANCE MONITORING 2009/2010 PRINCIPLE 1: FOCUSING ON THE PURPOSE OF THE AUTHORITY, ON OUTCOMES FOR THE COMMUNITY, CREATING AND IMPLEMENTING A VISION FOR THE LOCAL AREA

Requirements to : Evidence of compliance Lead Officer

Review Date

Comments/ Status

(a) develop and promote the Authority’s purpose and vision

Corporate Report IRMP Communications Strategy

CFO/CE DCFO DCFO

Mar 10 Feb 10 Apr 10

Revised format to APRC April 2010; next review due March 2011 Consultation document approved by Authority Feb 10; final draft to Authority June 10 Under review; updated version planned for approval Sep 10

(b) review on a regular basis the Authority’s vision for the local area and its impact on the Authority’s governance arrangements

Corporate Report IRMP

CFO/CE DCFO

Mar 10 Feb 10

Work underway to consider a new Vision to 2020;for June Members’ Seminar and subsequent Authority meetings 2010; The Risk Management Model is reviewed annually and improvements have been implemented. Detailed Station specific reports are being developed to support the overall risk assessment.

(c) ensure that partnerships are underpinned by a common

vision of their work that is understood and agreed by all parties

Partnership Policy

DCFO

Feb 10

Reviewed by APRC 5th Feb 2010

(d) publish an annual report on a timely basis to communicate the Authority’s activities and achievements, its financial position and performance

Corporate Report

CFO/CE

Mar 10

Revised format to APRC April 2010. Final document to Authority June2010. Subsequent review March 2011

(e) decide how the quality of service for users is to be

measured and make sure that the information needed to review service quality effectively and regularly is available

Performance Framework IRMP

CFO/CE DCFO

Sept 09 Jan 10

Revised Indicators considered by APRC 22

nd September 2009; next review September 2010; The annual assessment of the Risk Management Model is supported by incident monitoring and debriefing arrangements together with feedback from public satisfaction surveys, the Complaints and Consultation procedures and website enquiry facility

(f) put in place effective arrangements to identify and deal

with failure in service delivery

Complaints Procedure Service Delivery Assurance Framework

DCFO DCFO

Oct 09 Monthly

Next Review date 2011 The Framework provides a composite overview of service delivery and identifies potential areas for improvement

Requirements to : Evidence of compliance Lead Officer

Review Date

Comments/ Status

(g) decide how value for money is to be measured and make

sure that the Authority or partnership has the information needed to review value for money and performance effectively. Measure the environmental impact of policies, plans and decisions

Partnership Policy Financial Management Framework Environmental Strategy

DCFO DCS DCS

Feb 10 Sep 09 Mar 10

Reviewed by APRC 5th Feb 2010 To be implemented following final 08/09 UoR judgement and consideration by APRC 5

th Feb 2010 Draft requires target information to be considered in conjunction with NYSP Sustainable Community Strategy

PRINCIPLE 2: MEMBERS AND OFFICERS WORK TOGETHER TO ACHIEVE A COMMON PURPOSE WITH CLEARLY DEFINED FUNCTIONS AND ROLES

Requirements to: Evidence of compliance Lead Officer

Review Date

Comments/Status

(a) set out a clear statement of the respective roles and

responsibilities of Authority Members and Senior Officers

Protocol for

Member/Officer Relations

Monitoring Officer

Oct 09

Approved by the Authority Meeting February 2010

(b) determine a scheme of delegation and reserve powers within the constitution, including a formal schedule of those matters specifically reserved for collective decision of the Authority, taking account of relevant legislation and ensure that it is monitored and updated when required

Committees’ Terms of

Reference

Scheme of Delegation

Secretary DCS

Dec 09 Apr 10

Authority meeting in December approved changes to Appeals Committee Operation of the Scheme in 9/10 to APRC 27

th April 2010

(c) make a chief executive or equivalent responsible and

accountable for all aspects of operational management

CFO/CE Role Profile


Appointments Committee

Apr 10

Operation of the Scheme in 9/10 to APRC 27

th April 2010

(d) develop protocols to ensure that a shared understanding of

the roles of Chair and Chief Executive is maintained

Protocol for


Monitoring Officer

Oct 09


(e) make a senior officer (the S151 officer) responsible to the

Authority for ensuring that appropriate advice is given on all financial matters, for keeping proper financial records and accounts and for maintaining an effective system of internal control

DCS Role Profile


Appointments Committee

Apr 10

Operation of the Scheme in 9/10 to APRC 27th April 2010


Review Date

Comments/Status

(f) make a senior officer (the monitoring officer) responsible to

the Authority for ensuring that agreed procedures are followed and that all applicable statutes and regulations are complied with

Appointment Report Scheme of Delegation

Authority

Apr 10

Operation of the Scheme in 9/10 to APRC 27

th April 2010

(g) develop protocols to ensure effective communication

between Members and Officers in their respective roles

Protocol for


Monitoring Officer

Oct 09


(h) set out the terms and conditions for remuneration of

Members and officers and an effective structure for managing the process (including a remuneration panel if applicable)

Members Allowances Scheme Appointments Panel /Job Evaluation Process

DCS DHR

April 09

Annual review of payable amounts only. Last full review in June 2008 Job Evaluation is continuous. Appointments Panel meets on a case by case basis

(i) ensure that effective mechanisms exist to monitor service

delivery

Performance Framework

CFO/CE

Sep 09

Revised Indicators considered by APRC 22nd September 2009; next review Sept 2010

(j) ensure that the organisation’s vision, strategic plans,

priorities and targets are developed through robust mechanisms, in consultation with the local community and other key stakeholders, and that they are clearly articulated and disseminated

IRMP Communications Strategy

DCFO DCFO

Mar 10 Apr 10

The IRMP and associated Action Plans are refreshed each year and published for comment/ public consultation Reviewed in conjunction with Community Engagement Strategy. Updated versions of both documents planned for approval Sept 10

(k) when working in partnership ensure that members are clear

about their roles and responsibilities both individually and collectively in relation to the partnership and the Authority

Partnership Policy

DCFO

Feb 10

Reviewed by APRC 5th Feb 2010 as part of Partnership Evaluation

(l) when working in partnership, ensure that there is clarity

about the legal status of the partnership

Partnership Policy

DCFO

Feb 10


(m) when working in partnership, ensure that representatives or

organisations both understand and make clear to all other partners the extent of their authority to bind their organisation to partner decisions

Partnership Policy

DCFO

Feb 10


PRINCIPLE 3: PROMOTING VALUES FOR THE AUTHORITY AND DEMONSTRATING THE VALUES OF GOOD GOVERNANCE THROUGH UPHOLDING HIGH STANDARDS OF CONDUCT AND BEHAVIOUR


Review

Date Comments/ Status

(a) Ensure that the Authority’s leadership sets a tone for the

organisation by creating a climate of openness, support and respect

Ethical Framework Corporate Report

Monitoring Officer CFO/CE

Jan 10 Mar 10

Regular review by Standards Committee which last met in January Revised format to APRC April 2010. Final document to Authority June2010. Subsequent review March 2011

(b) Ensure that standards of conduct and personal behaviour

expected of members and staff and between the authority, its partners and the community are defined and communicated through Codes of Conduct and protocols.

Members’ Code of Conduct Staff Code of Conduct

Monitoring Officer DHR

Oct 09 July 07

Local Ethical Framework Developments considered by Standards Committee October 2009 Next review due June 2010

(c) 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. Ensure that they continue to operate

Members Code of Conduct Staff Code of Conduct

Monitoring Officer DHR

Oct 09 July 07

Local Ethical Framework Developments considered by Standards Committee October 2009 Next review due June2010

(d) develop and maintain shared values including leadership

values for both the organisation and staff reflecting public expectations and communicate these with members, staff, the community and partners

Corporate Report Communications Strategy

CFO/CE DCFO

Mar 10 Apr 10

Revised format to APRC April 10; final to Authority June 10; review March 11 Reviewed in conjunction with Community Engagement Strategy. Updated versions of both documents planned for approval Sept 2010

(e) put in place arrangements to ensure that systems and

processes are designed in conformity with appropriate ethical standards and monitor their continuing effectiveness

Ethical Framework

Monitoring Officer

Jan 10

Local Ethical Framework Developments considered by Standards Committee October 2009

(f) develop and maintain an effective Standards Committee

Standards Committee Terms of Reference

Monitoring Officer

Jan 10

Regular review by Standards Committee which last met in January

(g) use the organisation’s shared values to act as a guide for

decision making and as a basis for developing positive and trusting relationships within the authority

Corporate Report National Fire Service Core Values

CFO/CE DHR

Mar 10

Revised format to APRC April 2010. Final document to Authority June2010. Subsequent review March 2011 Periodically rather than annually reviewed nationally with local implementation


Review


(h) For partnerships, agree a set of values against which

decision making and actions can be judged. Such values must be demonstrated by partners’ behaviour individually and collectively

Partnership Policy

DCFO

Feb 10


PRINCIPLE 4: TAKING INFORMED AND TRANSPARENT DECISIONS WHICH ARE SUBJECT TO EFFECTIVE SCRUTINY AND MANAGING RISK


Review


(a) develop and maintain open and effective mechanisms for

documenting evidence for decisions and recording criteria, rationale and considerations on which decisions are based

Authority/ Committee

Board/ Directorate

Secretary CMB

Dec 08

Web based Publication Scheme now provides public access Revised Business Management Framework in place Sep 2009

(b) put in place arrangements to safeguard members and

employees against conflicts of interest and put in place appropriate processes to ensure that they continue to operate in practice

Members Code of Conduct Staff Code of Conduct Financial Reporting

Monitoring Officer DHR DCS

Oct 09 July 07 Apr 10

Local Ethical Framework Developments considered by Standards Committee October 2009 Next review due June 2010 Annual declaration of Related Party Transactions

(c) develop and maintain an effective audit committee

APRC Terms of Reference Annual Audit and Inspection Letter

DCS DCS

Feb 10 Sept 09

Reviewed following disestablishment of 2 Member Forums Considered by APRC 22 September 2009

(d) ensure that effective, transparent and accessible

arrangements are in place for dealing with complaints

Complaints Procedure

DCFO

Oct 09

Next review in 2011

(e) ensure that those making decisions whether for the

Authority or a partnership are provided with information that is relevant timely and gives clear explanations of technical issues and their implications

Information Strategy

DCFO

May 08

Next scheduled review June 2010 taking into account findings from the Review of Administration


Review


(f) ensure that professional advice on matters that have legal or

financial implications is available and recorded well in advance of decision making and used appropriately

Statutory Officers

Authority

(g) ensure risk management is embedded into the culture of the

authority, with members and managers at all levels recognizing that risk management is part of their role

Risk Management Strategy

DCS

Dec 09

Reviewed and reported to APRC 2nd December 2009

(h) ensure that arrangements are in place for whistle blowing to

which staff and contractors have access

Whistleblowing Policy

DCS

Feb 09

Next scheduled review Feb 2011

(i) actively recognise the limits of lawful activity placed on the

Authority but also strive to utilise powers to the full benefit of their communities

Legal Service Level Agreement

Monitoring Officer

Dec 09

Next Review date May 2010

(j) recognise the limits of lawful action and observe both the

specific requirements of legislation and the general responsibilities placed on local authorities by public law


Monitoring Officer

Dec 09


(k) observe all specific legislative requirements placed upon

them as well as the requirements of general law and in particular to integrate the key principles of good administrative law – rationality, legality and natural justice ‐ into their procedures and decision making processes


Monitoring Officer

Dec 09


PRINCIPLE 5 : DEVELOPING THE CAPACITY AND CAPABILITY OF MEMBERS AND OFFICERS TO BE EFFECTIVE


Review Date

Comments/ Status

(a) provide induction programmes tailored to individual needs

and opportunities for members and officers to update their knowledge on a regular basis

Induction Programme

Members Development Staff PDIs

DHR

DHR

DHR

Sep 10 Sep 09 Sep 09

Periodic review undertaken as necessary; next review Sept 2010; Member Development Programme reviewed on a regular basis to ensure currency. Updated to APRC 22

nd September 2009; next review Sep 2010; PDI process reviewed September 2009; next review Sep 2011

(b) ensure that the statutory officers have the skills, resources

and support necessary to perform effectively in their roles and that these roles are properly understood.

Role Profiles/Personal Development Interviews

DHR

Sep 09

Role profiles reviewed as part of continuous Establishment Review and Job Evaluation process.

(c) assess the skills required by members and officers and make

a commitment to develop those skills to enable roles to be carried out effectively

Members Development Programme Members Seminars Staff PDIs

DHR

CFO/CE

DHR

Sep 09 Sep 09

Updated to APRC 22

nd September 2009; next review Sep 2010 Next Seminar scheduled for June 2010 PDI process reviewed September 2009; next review Sep 2011

(d) develop skills on a continuing basis to improve performance,

including the ability to scrutinise and challenge and to recognise when expert outside advice is needed

Role Profiles/Personal Development Interviews

DHR

Sep 09

Role profiles reviewed as part of continuous Establishment Review and Job Evaluation process

(e) ensure that effective arrangements are in place for

reviewing the performance of the Executive as a whole and of individual members. Agree an action plan to address any training or development needs

Members Development Programme Members Seminars

DHR

CFO/CE

Sep 09

Updated to APRC 22nd September 2009; next review Sep 2010 Next Seminar scheduled for June 2010

(f) ensure that effective arrangements designed to encourage

individuals from all sections of the community to engage with and participate in the work of the authority

Communications Strategy

DCFO

Apr 10

Reviewed in conjunction with Community Engagement Strategy. Updated versions of both documents planned for approval Sept 2010

(g) ensure that career structures are in place for members and officers to encourage participation and development

Members Development Programme Members Seminars

DHR

CFO/CE

Sep 09

Updated to APRC 22nd September 2009; next review Sep 2010 Next Seminar scheduled for June 2010

PRINCIPLE 6: ENGAGING WITH LOCAL PEOPLE AND OTHER STAKEHOLDERS TO ENSURE ROBUST PUBLIC ACCOUNTABILITY


Review Date

Comments/ Status

(a) make clear to members, all staff and the community, the

accountabilities and responsibilities of the authority

Publication Scheme

DCFO

Dec 08

Specific section with the Publication Scheme provides details

(b) consider those institutional stakeholders to whom the

authority is accountable and assess the effectiveness of the relationships and any changes required

Annual Governance Statement

DCS

Apr 10

Outcome of Review to APRC April 10

(c) ensure that clear channels of communication are in place

with all sections of the community and other stakeholders and put in place monitoring arrangements to ensure that they operate effectively


DCFO

Apr 10

Reviewed in conjunction with Community Engagement Strategy. Updated versions of both documents planned for approval Sept 2010.

(d) hold meetings in public unless there are good reasons for

confidentiality

Authority/Committee

Agendas

Secretary

(e) ensure that arrangements are in place to enable the

authority to engage with all sections of the community effectively, recognising that different sections of the community have different priorities. Establish explicit processes for dealing with these competing demands


DCFO

Apr 10


(f) establish a clear policy on the types of issues the authority

will consult upon or engage with the public and service users about including a feedback mechanism


DCFO

Apr 10


(g) on annual basis publish a performance plan giving

information on the authority’s vision, strategy, plans and financial statements, outcomes, achievements and the satisfaction of service users in the previous period

Corporate Report

CFO/CE

Mar 10

Scheduled for publication end June 2010

(h) ensure that the authority as a whole is open and accessible

to the community, service users and staff

Agendas


Secretary

DCFO

Apr 10

Web based Publication scheme now includes all public documents Reviewed in conjunction with Community Engagement Strategy. Updated versions of both documents planned for approval Sept 2010

(i) maintain a clear policy on how staff and their representatives

are consulted and involved in decisions

Consultation/ Negotiation

Procedures

DHR

Sep 09

Statutory ACAS procedures as well as specific procedures contained within schemes and conditions of service for staff groups; subject to further review

APPENDIX B NORTH YORKSHIRE FIRE AND RESCUE AUTHORITY

ANNUAL GOVERNANCE STATEMENT

Scope of Responsibility 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. The Authority also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. In discharging this overall responsibility, the Authority is responsible for putting in place proper arrangements for the governance of its affairs, facilitating the effective exercise of its functions and which includes arrangements for the management of risk. The Authority has approved and adopted a code of corporate governance, which is consistent with the principles of the CIPFA/SOLACE Framework. A copy of the code is on the website at www.northyorksfire.gov.uk or can be obtained from the Corporate Information Unit, NYFRA Headquarters, Thurston Rd Northallerton. This statement explains how the Authority has complied with the code and also meets the requirements of regulation 4(2) of the Accounts and Audit Regulations 2003 as amended by the Accounts and Audit (Amendment) (England) Regulations 2006 in relation to the publication of a statement on internal control. The purpose of the governance framework The governance framework comprises the systems and processes, and culture and values, by which the Authority is directed and controlled and its activities through which it accounts to, engages with and leads the community. It enables the Authority to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective services. The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the authority’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The governance framework has been in place at the Authority for the year ended 31 March 2010 and up to the date of approval of the Statement of Accounts. The Governance Framework The key elements of the Authority’s governance framework include:

a) the maintenance and review of

Standing Orders Financial regulations

http://www.northyorksfire.gov.uk/

Conventions Committee Membership and Terms of Reference Scheme of Delegation to Officers Members Code of Conduct Staff Code of Conduct

b) the Audit and Performance Review Committee which, as well as the Authority

itself, receives regular reports monitoring and reporting the Service’s performance and governance arrangements

c) an approved Corporate Risk Management Strategy and Policy which includes the

maintenance of a comprehensive Risk Register d) an approved “Local Code of Corporate Governance” in accordance with the

CIPFA/SOLACE Framework for Corporate Governance e) the designation of the Chief Fire Officer as Chief Executive responsible to the

Authority for all aspects of operational management

f) the designation of the Director of Corporate Services as Chief Financial Officer in accordance with Section 112 of the Local Government Finance Act 1988

g) the designation of the Legal Advisor as Monitoring Officer with the requirement to report to the full Authority if it is considered that any proposal, decision or omission would give rise to unlawfulness or maladministration

h) the maintenance and review of an Asset Management Strategy

i) the maintenance and review of a Human Resources Strategy k) the production of an annual Corporate Report

l ) the production of the Integrated Risk Management Plan

m) Partnership Evaluation arrangements

n) Anti Fraud and Corruption Policy

o) Whistleblowing Policy

p) Complaints procedure

q) The work of the Standards Committee

r) The Consultation Strategy

s) Members and Staff Development Programmes Review of effectiveness The Authority has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness is informed by the work of the executive managers within the authority who have responsibility for the development and maintenance of the governance environment, the Head of Internal Audit’s annual report, and also by comments made by the external auditors and other review agencies and inspectorate.

The Authority has responsibility for conducting, at least annually, a review of the effectiveness of the system of internal control. That review is informed by:

a) The work of Managers within the Authority

b) The work of the internal auditors as described above

c) The external auditors in their annual audit letter and other reports

d) Other review mechanisms such as the Health and Safety Inspectorate

During 2009/2010 the Member level Steering Group met on 5 occasions and considered a report on budget monitoring at each meeting. In addition the full Authority met on 4 occasions. Monitoring against the Local Code of Corporate Governance was considered by the Audit and Performance Review Committee at its meeting 27 April 2010 whilst an assurance reporting system at Directorate level was introduced by Corporate Management Board.

During the year the Internal Audit Service issued 12 reports to the Audit and Performance Review Committee which met on 5 occasions. As well as Audit Reports, the Committee considered Operational and Human Resources performance reports.

The Internal Auditor’s overall conclusion that the system of internal control was Substantial Assurance was issued on 14th April 2010. The Audit and Performance Review Committee considered the external auditor’s Annual Governance Report for 2008/2009 in September 2009.

Progress on addressing the issues raised last year continued. The External Auditor’s Annual Audit and Inspection Letter considered by APRC in December 2009 identified no significant weaknesses in governance arrangements

The Authority’s Standards Committee met 3 times during the year. We have been advised on the implications of the result of the internal review of the effectiveness of the governance framework by the Audit and Performance Review Committee. A system to address weaknesses and ensure continuous improvement is in place. Significant Governance Issues No significant weaknesses in Governance or Internal Control have been identified by the reviews for 2009/2010. The External Auditor’s Annual Governance Report for 2009/2010 is planned for receipt in September 2010. Approved by the Authority at its meeting 23 June 2010 Signed Cllr J Fort BEM N M Hutchinson I R Young Chair of the Authority Chief Fire Officer /Chief Director of Corporate

Executive Services &Treasurer

APPENDIX C Objective 1: Establishing principal statutory obligations and organisational objectives: Examples of assurance:

NYFRA Evidence

Director/Senior Management Team owner(s)

Step 1: Mechanism established to identify principal statutory obligations

1 Responsibilities for statutory obligations are formally established

Role Profiles

Human Resources

2 Record held of statutory obligations

Process of recording introduced

Information Management

3 Effective procedures to identify, evaluate, communicate, implement,

comply with / monitor legislative changes exist and are used

Information Management Strategy


Audit/Reporting Process

Assurance Reports


DCS

Business Development

All

Step 2: Mechanism in place to establish corporate objectives

1 Consultation with stakeholders on priorities and objectives

Annual IRMP consultation

Service Delivery

2 The authority’s priorities and organisational objectives have been agreed

(taking into account feedback from consultation)

IRMP

Corporate Report

Service Delivery


3 Priorities and objectives are aligned to principal statutory obligations and

relate to available funding

Business Management Framework

Corporate Report


4 Objectives are reflected in departmental plans and are clearly matched with associated budgets

Station/ Group Plans

Financial Management Framework

Service Delivery

Financial Services

Step 3: Effective Corporate Governance arrangements are embedded within the Authority

1 Code of corporate governance established

Local Code of Corporate Governance


2 Review and monitoring arrangements in place

Audit and PR Committee Minutes

Annual Audit Letter


3 Committee charged with governance responsibilities

Terms of Reference of APRC

APRC Schedule of Meetings and Business


4 Governance training provided to key officers and all Members

Members Development Programme

Human Resources

5 Staff, public and other stakeholder awareness of corporate governance

Corporate Governance Publications


Step 4: Performance management arrangements are in place

1 Comprehensive and effective performance management systems operate

routinely

Performance Management Framework

Annual Audit and Inspection Letter

Performance Reports


2. Key performance indicators are established and monitored

Corporate Plan

Management Information System

APRC reports

Improvement Planning Framework


3. The authority knows how well it is performing against its planned outcomes

APRC reports

Management Information System

Monthly Budget Monitoring Reports

Business Development Inform’n Management Financial Services

5. The authority continuously improves its performance management

Improvement Planning Framework

Annual Audit and Inspection Letter


2

Objective 2: Identify principal risks to achievement of objectives:

Step 1: The authority has robust systems and processes in place for the identification and management of strategic and operational risk

1 There is a written strategy and policy in place or managing risk which:

Has been formally approved at Member and Board level

Is reviewed on a regular basis

Has been communicated to all relevant staff

Annual Review of Risk Management Strategy


2 The authority has implemented clear structures and processes for risk

management which are successfully implemented and:

Management and elected members see risk management as a priority

Decision making considers risk

A senior manager has been appointed to “champion” risk management

Roles and responsibilities for risk management have been defined

Risk management systems are subject to independent assessment

Risk management is considered in the annual business planning process

Role Profiles of Corporate Management Board/ Senior Management Team

Internal/External Audit Plans

Audit Reports

Risk Register

IRMP /Budget/ Risk Report to APRC

April 2009 Review

Human Resources Business Development

3 The authority has developed a corporate approach to the identification and

evaluation of risk which is understood by all staff

Risk Register process

Seminars/published Strategy and Policy

. Business Development

4 The authority has well defined procedures for recording and reporting risk

April 2009 Review

Risk Register and reporting process

Audit Plans


5 The authority has well‐established and clear arrangements for financing

risk

Budget

Annual review of Insurances

Financial Services

6 The authority has developed a programme of risk management training for

relevant staff

PDI process

H&S Bulletins and Ops Policies.

Human Resources

3

7 The corporate risk management board (or equivalent) adds value to the

risk management process by:

Advising and supporting corporate management team on risk strategies

Identifying areas of overlapping risk

Driving new risk management initiatives

Communicating risk management and sharing good practice

Providing and reviewing risk management training

Regularly reviewing the risk register(s)

Coordinating the results for risk reporting

Corporate Management Board and Senior Management Team Role Profiles

Risk Register Reports to Corporate Management Board and APRC

ALL Business Development

8 A corporate risk officer has been appointed with the necessary skills to

analyse issues and offer options and advice and:

Support decision making and policy formulation

Provides support in the risk identification and analysis process

Provides support in prioritising risk mitigation action

Provides advice and support in determining risk treatments

Head of Business Development

SMT/ CMB minutes and reports

Membership of ALARM and Fire Service Special Interest Group


9 Managers are accountable for managing their risks

Risk Register

Monthly review by SMT

Annual Risk Review


10 Risk management is embedded throughout the authority

April 2009 Review of Risk Management Business Development

11 Risks in partnership working are fully considered

Partnership Risk Assessment

Service Delivery

12 Where employed, risk management information systems meet users’

needs

Risk Register monitoring


4

Objective 3: Identify key controls to manage principal risks:

Step 1:The authority has robust system of internal control which includes systems and procedures to mitigate principal risks

1 There are written financial regulations in place which have been formally

approved, regularly reviewed and widely communicated to all relevant staff:

Authority has adopted CIPFA code on Treasury Management

Compliance with the Prudential Code


Annual Review of Regulations

Annual Treasury Management Report

Financial Services

2 There are written contract standing orders in place which have been

formally approved, regularly reviewed and widely communicated to staff

Contract Regulations


Technical Services

Financial Services

3 There is a whistle blowing policy in place which has been formally

approved, regularly reviewed and widely communicated to all relevant staff

Reviewed March 2007

Director Corporate Services

4 There is a counter fraud and corruption policy in place which has been

formally approved, regularly reviewed and widely communicated to staff

CFA December 2004

National Fraud Initiative/Audit Reports

Financial Services

5 There are codes of conduct in place which have been formally approved

and widely communicated to all relevant staff

Staff Code of Conduct

Human Resources

6 A register of interests is regularly updated and reviewed

Members Register

Secondary employment policy/ Staff Code

Secretary

Human Resources

7 Any scheme of delegation has been formally approved and communicated

to all relevant staff

Scheme of Delegation Secretary

5

8 A corporate procurement policy has been drawn up, formally approved

and communicated to all relevant staff

Procurement Strategy Technical Services

9 Business/service continuity plans have been drawn up for all critical service areas and are subject to regular testing and review

Operational Resilience and Regional Business Continuity Plans Annual Review

Service Delivery

10 The risk register(s) includes expected key controls to manage principal risks

Risk Management Strategy


11 Key risk indicators track the movement of key risks and are regularly monitored and reviewed.

Risk Register


12 The authority’s internal control framework is subject to regular independent assessment

Internal Audit

External Audit

Financial Services/ Business Development

13 A corporate health and safety policy has been drawn up, approved, subject to regular review and has been communicated to all relevant staff

H&S policy updates

Bulletins, training, Risk Assessments

Accidents stats monitoring and reporting

Human Resources

14 A corporate complaints policy/procedure has been drawn up, formally approved, communicated to all relevant staff and other stakeholders is regularly reviewed

Complaints Procedure


6

Objective 4: Obtain assurance on the effectiveness of key controls:

Step 1:Appropriate assurance statements are received from designated internal and external assurance providers:

The authority has identified appropriate sources of assurance

Appropriate external assurances are identified and obtained

1 The authority has determined appropriate internal and external sources of

assurance

APRC/Authority Minutes

Internal/External Audit


2 Appropriate key controls on which assurance is to be given have been

identified and agreed

Risk register

Financial Services

3 External assurance reports are reviewed by senior management and

reported to appropriate committee

Action plans are prepared and approved

Follow up reports on recommendations are requested and reviewed by senior management

progress regularly reported to relevant committee

Audit reports

APRC Minutes


4 Internal Audit Arrangements

Internal Audit Reports to APRC

Statement of Accounts

Financial Services

5 Corporate Governance Arrangements

Review of Local Code

Annual Audit Letter

Business Development/ Financial Services

6 Performance monitoring arrangements

APRC and other Performance Reports


7

Objective 5: Evaluate assurances and identify gaps in control/ assurances:

Step 1: The authority has made adequate arrangements to identify, receive and evaluate reports from the defined internal and external assurance providers to identify areas of weakness in controls

1 Responsibilities for the evaluation of assurances are clearly defined

throughout the organisation.

APRC reports

Board Assurance Reports

Business Development All

2 Mechanism established for collecting AGS assurances

Report to APRC and Authority


Objective 6: Action plan to address weaknesses and ensure continuous improvement of the system of internal control:

Step 1: There is a robust mechanism to ensure that an appropriate action plan is agreed to address identified control weaknesses and is implemented and monitored

1 Action plans are produced Audit /APRC arrangements


2 Actions communicated and responsibilities assigned

Audit /APRC arrangements Business Development

3 Implementation timescales agreed

Audit /APRC arrangements Business Development

4 Ongoing review of progress and of continuing appropriateness of action Audit /APRC arrangements Business Development

Objective 7: Annual Governance Statement:

Step 1: A statement has been drafted in accordance with the statutory requirements and timetable set out in the Accounts and Audit Regulations 2003 and is in accordance with CIPFA guidance

1 Responsibility for the compilation of the Annual Governance Statement has

been assigned



2 There is a AGS timetable that meets the statutory deadline Report to APRC and Authority Director Corporate Services

3 The statement is reviewed, challenged and approved by the authority Report to APRC and Authority Director Corporate Services

8

9

Objective 8: Report to cabinet / executive committee:

Step 1: An annual report to the authority (or delegated committee) on the Annual Governance Statement is presented, in accordance with the CIPFA pro forma

1 Responsibility for reporting is clearly defined

Report to APRC and Authority Director Corporate Services

2 The signatories to the Statement are defined in accordance with statutory

requirements



3 The report is published in a timely fashion



audit and performance review committee ......2.2 a key part of the authority’s governance...

Documents