Local Code of Corporate Governance

Report: 9
Date: 27 March 2008
By: Chief Executive and Treasurer

Summary

This report informs members of the development of a Local Code of Corporate Governance.

A. Recommendation

That

1. the Corporate Governance Committee considers whether it wishes to amend the draft Local Code of Corporate Governance before recommending it to the full Authority for approval; and

2. members note that an annual assessment of the extent to which the Authority has met the aspirations set out in the Code, will be summarised in the Annual Governance Statement.

B. Supporting information

1. At the 7 December meeting of the Corporate Governance Committee it was agreed that a Local Code of Corporate Governance be developed and that a fuller paper be brought to this meeting.

2. The CIPFA/SOLACE Framework regarding the Code of Governance and the Annual Governance Statement recommends that the Authority should be able to demonstrate that it is complying with the core and supporting principles contained in the Framework and should therefore develop a code of governance appropriate to its own circumstances.

3. Police authorities have a dual responsibility: for ensuring they have robust governance arrangements as an organisations in their own right; but also ensuring good governance arrangements are in place in police forces, which will cover a range of aspects from finance to ethical standards that authorities are responsible for overseeing. The Framework outlines six core principles of good governance and translates each one into a range of specific requirements that should be reflected in a local code of governance. The six core principles are:

• Focussing on the purpose of the authority and on outcomes for the community and creating and implementing a vision for the local area.
• Members and Officers working together to achieve a common purpose with clearly defined functions and roles.
• Promoting values for the authority and demonstrating the values of good governance through upholding high standards of conduct and behaviour.
• Taking informed and transparent decisions which are subject to effective scrutiny and managing risk
• Developing the capacity and capability of members and officers to be effective
• Engaging with local people and other stakeholders to ensure robust public accountability

4. The development of such a code, consistent with the principles and requirements of the CIPFA/SOLACE Framework, will help to ensure the Authority fulfils its responsibilities to ensure it has proper arrangements in place 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.

5. The Framework commends the development of a governance code as best practice but leaves it as an optional/discretionary requirement for local determination. Many of the elements of such a local code already exist, but members supported the proposal that a gap analysis was undertaken and that officers report back to the next meeting of this committee with proposals for a local code of governance. When developed the authority will then conduct an annual assessment of the extent to which they have met the aspirations set out in the Code, which will be summarised in the AGS.

C. Race and equality impact

1. The authority’s procedures to promote equality and diversity will become part of the MPA governance framework. The annual review of the local code will allow the authority to demonstrate how effectively these arrangements are to the governance of the organisation. Should any gaps be identified as part of the annual assessment process these may be subject to an equalities impact assessment.

2. As part of its governance framework the MPA has a number of policies and protocols, such as the Members’ Code of Conduct, the Staff / Member Protocol and policies on employees and employers’ rights in the workplace. These will be kept under regular review to ensure that they are fit for purpose for those occasions when the aspirations in the Corporate Governance Code are not met.

D. Financial implications

None specific to this report.

E. Background papers

None

F. Contact details

Report author: Ken Hunt, Treasurer, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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