Agenda item

The Corporate Director of Resources submits a report which aims to enable compliance with the requirements of the Council’s Corporate Governance Code, inform members about new national guidance and proposals for updating the Authority’s Corporate Governance Code; and report the position regarding Local Government Ombudsman complaints.  The Committee is asked to review the position as summarised in this annual report and to forward any comments to Cabinet for consideration.

The Corporate Director of Resources submitted a report, Annual Corporate Governance Review for 2006/7.  Peter Nicholls, Service Director for Legal Services, outlined the report explaining that the Council had adopted a Corporate Governance Framework five years previously based on The Chartered Institutes of Public Finance and Accountancy’s (CIPFA) contemporary guidance.  An annual review had to be carried out each year in accord with the Framework; this was the fifth Annual Review.   It was explained that Corporate Governance, in essence, was the way in which the Council managed and controlled the way in which it delivered services, it was essentially a process system, a framework which covered all the Council's operations, and had a direct impact on service delivery.  It was important for Comprehensive Performance Assessment (CPA) purposes.   The District Auditor had also commented favourably on the Council's Framework, Leicester's being well developed compared to most other Authorities. 

The Council's Framework consisted of a range of key policies and procedures, identifying a lead officer for each.  The lead officers needed to provide an assurance in respect of their responsibilities, these were included in the report.  If this could not be given they were required to provide an action plan to ensure necessary improvements within a reasonable timescale.  It was confirmed that each lead officer had signed a hard copy, as recommended by Internal Audit.   Appendix 1 of the report summarised the assurances given showing that in respect of most the position is "green" or "green/amber", although for a couple the position is "red/amber".

The overall position was positive, although the Committee's attention was also drawn to the report's reference to a draft DA reporting regarding the Housing Department. 

The Chair asked how risk was identified; in response it was suggested that she meet with the lead officer responsible, i.e. Laurie Goldberg, Head of Audit and Governance.  Peter Nicholls agreed to arrange this meeting.

Concern was expressed that lead officers should take into account public perception when completing assurance statements. 

It was noted that the report included the full detail together with a summary in Appendix 1.  The Committee welcomed proposals to further develop presentation so as to highlight key issues.  The Chair requested that lead officer responsibilities be grouped together to make the appendices easier to read and Peter agreed to do this.

CIPFA had published new guidance, as explained in the report.  Now was an appropriate time for the Council to review and improve its Corporate Governance Framework. It was explained that CIPFA had recommended that the outcome of the proposed review of Corporate Governance arrangements ought to be presented to full Council for approval.

The Chair expressed concern that the six "core principles" for good governance would have been difficult to measure against and asked how these were incorporated.  Peter explained that the principles were at "high level" and that the Council would be required to set measurable standards and targets.

It was mentioned how the Council would go about introducing a new Framework.  Peter explained that the Audit Commission had produced guidance and that there would be representation at the forthcoming Standards conference in Birmingham when they would be able to learn about the latest best practice.  A review would be completed before March to enable the next Annual Corporate Governance Review for 2007/8 to be based on the new standards.

The Committee also reviewed the position with regard to complaints to the Ombudsman and noted that there were a large number of premature complaints which perhaps could be avoided if complainants were encouraged to use the Council's own complaints system rather than going straight to the Ombudsman.   It was noted that there was a gap in the Council's current arrangements in that there was not a single point for complaints.   This had already been identified and action had been taken to tackle this and the need to reduce the number of premature complaints.

RESOLVED

1.            that the Committee noted and supported the report

2.            that it be recommended to the Audit Committee that the Chair of Standards Committee be invited to attend for matters relating to Corporate Governance including risk management.

3.            that the Service Director for Legal Services arrange for the Chair of the Standards Committee to meet with Laurie Goldberg, Head of Audit and Governance, to enable the Chair to gain a greater understanding as to how risk assessments are carried out in practice.