Members are requested to consider whether they have a personal or prejudicial interest in connection with any of the items on this agenda and, if so, to declare it and state the nature of such interest.

No declarations of interest were received.

The initial Terms of Reference of the Corporate Governance Committee as recommended by AKA in the Corporate Governance Report, are as follows:

Assessing and reporting on the Council’s current performance against seven Corporate Governance questions:

1.  How well are the authority’s policies implemented in practice?

2.  How well are the authority values and ethical standards met?

3.  How well are laws and regulations complied with?

4.  How well are required processes adhered to?

5.  Are financial statements and other published information accurate and reliable?

6.  Are human, financial and other resources managed efficiently and effectively?

7.  Are high-quality services delivered efficiently and effectively?

Identifying and agreeing recommendations that will address existing shortfalls and/or deliver improvements required by Sector Self Regulation and Improvement and existing CIPFA guidance setting out what good governance looks like.

Agreeing, initiating and overseeing the individual work streams and coordinating the collective work programme required to deliver the Wirral MBC “Taking the Lead” initiative.

Agreeing and monitoring “delivery trajectories” for each work stream.

Making regular progress and performance reports to the Cabinet and Scrutiny functions.

Where necessary, seeking approval to make changes that impact positively on Corporate Governance and, if required, making recommendations to the appropriate governance body authorised to make such changes.

Reporting to the full Cabinet and/or full Council with feedback reports and/or recommendations as appropriate.

The Committee noted that it’s initial Terms of Reference as recommended by AKA who had produced a Supplemental Report entitled ‘Wirral Metropolitan Borough Council’s Corporate Governance Arrangements: Refresh and Renew’ (The Corporate Governance Report), were as follows:

“Assessing and reporting on the Council’s current performance against seven Corporate Governance questions:

(1)  How well are the authority’s policies implemented in practice?

(2)  How well are the authority values and ethical standards met?

(3)  How well are laws and regulations complied with?

(4)  How well are required processes adhered to?

(5)  Are financial statements and other published information accurate and

reliable?

(6)  Are human, financial and other resources managed efficiently and

effectively?

(7)  Are high-quality services delivered efficiently and effectively?

Identifying and agreeing recommendations that will address existing shortfalls and/or deliver improvements required by Sector Self Regulation and Improvement and existing CIPFA guidance setting out what good governance looks like.

Agreeing, initiating and overseeing the individual work streams and coordinating the collective work programme required to deliver the Wirral MBC “Taking the Lead” initiative.

Agreeing and monitoring “delivery trajectories” for each work stream.

Making regular progress and performance reports to the Cabinet and Scrutiny functions.

Where necessary, seeking approval to make changes that impact positively on Corporate Governance and, if required, making recommendations to the appropriate governance body authorised to make such changes.

Reporting to the full Cabinet and/or full Council with feedback reports and/or recommendations as appropriate.”

RESOLVED:

That the Committee’s Terms of Reference as detailed above be noted.

A report by the Director of Law, HR and Asset Management served to assist Members in their considerations of the proposed performance appraisal and development framework.  This included the performance appraisal and development of the Chief Executive.

The Council’s current Key Issues Exchange (KIE) process had been in place since 2001.  Whilst it had delivered well in the past, recent return rates had indicated that a refreshed and updated approach was needed.  The Chief Executive informed the Committee that on his appointment he had wanted to improve how staff performance was measured and so, before the Corporate Governance Report had been published had commissioned work in this area which had resulted in the proposals in the report for staff performance and development.  The proposed performance appraisal framework replaced KIE at the senior level.  The Chief Executive sought the Committee’s guidance on how to move forward with this initiative in the light of the Council’s primary aim which was to improve corporate governance.

The Committee was informed that the Performance Improvement Framework illustrated how the Council’s vision and purpose, detailed in its Corporate Plan, was delivered through the Corporate Planning process and the Council’s Performance Information Management System (PIMS).

The delivery of the Council’s vision and purpose was supported by the Council’s expectations of its workforce in relation to Leadership and Management and Wirral’s Values and Behaviours.  Individual objectives had been agreed to deliver the Council’s objectives, Corporate Plan and Departmental Plan, meeting Leadership and Management expectations underpinned by the values and behaviours.  The proposed performance appraisal and development process included a personal development plan and 360 degree feedback for senior managers.  Interventions to improve performance could be accessed through the Council’s Training Programmes, Skills for Wirral: Managers and Skills for Wirral: Employees programmes.

The Committee noted that the outputs were the improved delivery of the Council’s corporate and departmental objectives, as well as individual employee’s objectives.  The outcome, therefore, was that the Council’s vision and purpose were delivered for the residents of Wirral.  The Performance Improvement Framework was attached to the report at Appendix One.

The Committee also noted that the Leadership and Management Expectations Framework set out the expectations for all managers.  The Expectations Framework articulated what was expected of managers in their role and would be used in setting objectives and in assessing performance.  It would form the basis of the Skills for a Wirral: Managers’ Training Programme, with modules for each of the key areas.  The proposed Leadership and Management Expectations Framework was attached to the report at Appendix Two.

The report informed Members that the Council’s current KIE process had identified corporate and leadership behaviours, which had been in place since 2001.  A new set of values and behaviours had been developed using feedback from Senior Managers and focus groups of staff, including Trade Unions.

The report proposed that new corporate values and behaviours be established as part of the performance management framework.  The purpose of values and behaviours was to define, not just what  ...  view the full minutes text for item 3.

A report by the Chief Executive set out the reasons for establishing the Committee i.e. to drive forward changes in the way the Council operates, its Terms of Reference and a proposed agenda for its inaugural meeting.

Members were aware that AKA had been engaged by the former Leader of the Council.  Their remit had been to undertake an independent review of the Council’s response to claims made by Mr Martin Morton.  AKA had produced a Supplemental Report entitled ‘Wirral Metropolitan Borough Council’s Corporate Governance Arrangements: Refresh and Renew’ (The Corporate Governance Report) which summarised organisational weaknesses which the Council had failed to address.

The Cabinet had considered this report at its meeting on 22 September 2011 and resolved to accept the criticisms unreservedly and the recommendations designed to help the Council move forward.  It had also resolved to establish this, time limited, Cabinet Committee tasked with driving forward the changes which needed to be made in the way the Council was managed and in respect of its organisational culture. It was anticipated that the work of this Committee would be concluded by 31 March 2012.  The Cabinet had also noted that the Leader of the Council was keen for all three parties to work together to help resolve the issues that had been raised.

Members noted that the Corporate Governance Report had proposed a number of work streams to address the issues:

(1)  A Councillor Working Group supported by Officers

(2)  Taking the Lead Delivery Team

(3)  Review and Improve Corporate Governance Development and

Training across the Council

(4)  System Stress Tests across the Council

(5)  Corporate Governance Amnesty

The Cabinet had also asked this Committee to:

(a)  consider an initial report (from the Deputy Chief Executive/Director of Finance) on ways to strengthen the Council’s Internal Audit Team.

(b)  consider an initial report (from the Director of Law, HR and Asset Management) on ways to strengthen Legal and Member Services.

The Cabinet had additionally referred proposals in respect of Performance Management to this Committee as follows:

“In the light of the recent receipt of the independent report on Corporate Governance, Cabinet believes this report [Performance Management] should first be referred to the newly set up Cabinet Committee [The Corporate Governance Committee] in order to ensure that it meets all the necessary requirements to help the Council tackle the major problems ahead.  ”

Members were also informed that at its meeting on 29 September 2011, the Employment and Appointments Committee had agreed that this Committee should consider the creation of a dedicated Policy Unit working directly to the Chief Executive, and the creation of a new post of Head of Policy Unit.

Members noted that failure to respond appropriately to this report would mean that the Council and its residents remained at risk of:

  (a)  service failure

  (b)  external inspection under the Local Government Act 1999

  (c)  failure to respond appropriately to the self improvement regime anticipated from April 2012

Members noted, in particular, that there were ten areas of  ...  view the full minutes text for item 4.

Report of the Chief Executive to follow

A report by the Chief Executive identified a comprehensive programme of activities for the Committee’s consideration, to address the weaknesses identified in the recent Corporate Governance Report.  The programme identified key areas, key lines of enquiry to be pursued, interdependencies within the programme (whole systems approach) and therefore the necessary skill sets needed in a turnaround team to undertake this work.

The Committee was informed that whilst the Corporate Governance Report demanded significant progress by April 2012, the approach of self-assessment and external validation (peer review) to manage and monitor improvements should be embedded in the organisational culture and managed corporately across all services of the Council beyond that timescale, as part of a wider programme.

Members gave consideration to the additional resources that would have to be made available to support the Corporate Governance work programme and considered the possibility of the creation of a specific budget to support its delivery.

RESOLVED: That

(1)  the work programme to achieve improvements in corporate governance

be approved;

(2)  a detailed timeline identifying future meetings, key activities and milestones be developed to reflect decisions made at this Committee meeting;

(3)  the Chief Executive be requested to report to each meeting of the Committee on progress made against the programme and the timeline in delivering improvements in corporate governance;

(4)  as part of the work programme specific Member involvement be

Identified  at every stage;

(5)  in terms of specific budgetary provision, the Committee agrees, in principle, to providing support to deliver the work programme and requests that the Chief Executive reports to a future Committee meeting detailing how this can be achieved; and

(6)  authority be delegated to the Chief Executive, in consultation with the Leader, to establish a turnaround team of officers to work on strengthening the Council’s corporate governance .

Report of the Director of Finance to follow

A report by the Deputy Chief Executive/Director of Finance outlined areas of work which the Council’s Internal Audit Service could include in its Annual Plan to further strengthen corporate governance.  The report also informed of the work of Internal Audit Service, and in the light of the Corporate Governance Report, set out proposals for strengthening the Council’s existing arrangements for Internal Audit in respect of capability and capacity.

An initial analysis had been carried out and as a consequence Members noted the following specific topics that had been identified that the Internal Audit Service could include in its Annual Plan to strengthen further, the corporate governance of the Council:

·  Corporate Performance – systems, interpretation and use of data.

·  Governance – on-going role to ensure compliance with systems and that systems and policies are appropriate.

·  Risk Management – ensuring culture is embedded in the Council, and particularly that risks and emerging risks are clearly identified.

·  Counter Fraud – an increasing area of risk

·  Identification, dissemination and reporting of good practice across the Council.

·  Corporate Planning - links from corporate to service planning

·  Effectiveness and appropriateness of strategies.

The Committee noted that the service provided by Internal Audit was constantly evolving to support the Council’s Management and Leadership.  The aim now was to ensure that the Service was fit for purpose, both in terms of planned work and skills ability.  It was imperative that the Council’s Management responded appropriately and, as part of that process, Members were informed that advice should be sought on how best to align the professional competency framework with the proposed corporate performance management mechanisms.

RESOLVED: That

(1)  the additional areas of work that Internal Audit could conduct to strengthen further corporate governance be noted and the Deputy Chief Executive/Director of Finance be requested to obtain external perspectives of the workload, organisation and structure of Internal Audit to identify possible improvements;

(2)  the Committee agrees that the objective of this work is:

·  to provide a fit for purpose Internal Audit Service – both in terms of planned work and skills availability to which management responds;

·  thereby strengthening the corporate governance of the Council; and

·  consequently, enhancing service delivery;

and

(3)  the Deputy Chief Executive/Director of Finance be requested to present a further report on proposals flowing from this work to the Committee’s meeting scheduled for 7 December 2011.

Report of the Director of Law, HR and Asset Management to follow

A report by the Director of Law, HR and Asset Management provided an initial review of the capability and capacity of the Council’s Legal and Committee Services teams and requested the Committee to provide a steer on how to progress the review by determining an appropriate way forward.  The review picked up one of the specific lines of enquiry identified by AKA in the Corporate Governance Report and was part of Work Stream 4: “Undertake a Series of ‘System Stress Tests’ Across the Council”.  The report set out the current position and the challenges which faced the teams.  The Director also informed that he would be presenting a further report to the Committee at a future meeting setting out options to address these challenges.

The Director reported that new and evolving areas of law had become increasingly relevant to the work of a local authority and listed examples.  In addition, other legislative changes had affected specific service areas and had added to the demand for support from Legal Services.  These additional demands had accumulated over the years and the existing lawyers had responded and taken on new areas of responsibility.  This had placed increasing demands upon these individuals in question (and often resulted in a long hours culture); and meant that new and complex areas of legislation were being dealt with by lawyers who specialised in other areas of law.  This was a risk to the authority.  The result, not surprisingly, was that that the most common complaint about the legal service was that of delay because of the sheer volume of work.

Consequently, Legal Services had become almost exclusively reactive rather than proactive.  This too was a risk to the authority.  Investment was required to establish a fit for purpose Legal Service, as additional lawyers were needed, with relevant specialist knowledge of local authority law.

To address the issues the Director had identified and mitigate risks he made two recommendations: That

  (1)  the proposed bringing together of the Planning and Environment and Property functions should proceed.

(2)  a new Corporate Governance team be created within Legal Services.  This team would focus on the following areas of work:

·  Procurement and Commissioning (including contract disputes and, where

appropriate, termination)

·  Freedom of Information; Environmental Information Regulations; and

Data Protection

·  Equalities and Human Rights

·  Whistleblowing and Complaints

·  Standards and Ethical Governance

·  Supporting the democratic process (providing legal advice on

Committee/Cabinet reports)

The report also set out the tasks that the Committee Services team currently performed and identified the following factors that meant that it was being put it under increasing pressure:

• Since 2008 Committee Services has been reduced by five F/T posts: 2

PO4, 1 Band H and 2 Band G posts.

• Increase in the number of scrutiny call-ins which mean convening Special

meetings of Overview and Scrutiny Committees.

• At least 1 agenda and 1 Supplement are prepared by Committee Services for every Council meeting.
• The Cabinet meets every 3 weeks and Committee Services prepares at least 2 agendas each time (1  ...  view the full minutes text for item 7.

A report by the Chief Executive considered the principle of establishing a dedicated Policy Unit, working directly to himself and the establishment of a new post of Head of Policy Unit.  These proposals were put forward in response to the findings set out in the Corporate Governance Report and to strengthen the Council’s existing arrangements for the development and co-ordination of policy.

The Committee was informed that the Cabinet, at its meeting on 22 September 2011, had considered a report by AKA into the Council’s Corporate Governance arrangements and Employment and Appointments Committee, at its meeting on 29 September 2011, had agreed that this Committee should be asked to consider the principle of the establishment of a dedicated Policy Unit working directly to the Chief Executive

In the light of the AKA Report, Members were aware that it was essential that the Council’s capacity to develop and co-ordinate policy was improved.  The development, co-ordination and implementation of policy were a critical function of any local authority.  The policy function sat at the heart of setting the authority’s future direction and must ensure that the Council was aware of, and was responding to, changing circumstances whether, as a result of new legislation, social or economic changes or whatever other reason.  It was also critical that the Council ensured that when it agreed to introduce new policies, that they were appropriately implemented and that their impact was monitored and evaluated.

The Chief Executive reported that it had been suggested that the primary responsibilities of the new Policy Unit would be to ensure that the Council was aware of and responds to changing circumstances.  The Policy Unit would also be responsible for the development and co-ordination of policy work across the Council.  A major element of this work would be the ongoing development of the Council’s Corporate Plan which was the Authority’s foremost policy document.  The Policy Unit would also take the lead on a number of other major policy initiatives including the Council’s Child Poverty Strategy.

Members were told that current thinking was that in the first instance the Policy Unit should be established by the incorporation of existing officers currently working directly to the Chief Executive on policy issues but that other officers, elsewhere in the Authority, be seconded to the Unit.  It would also be appropriate for the Policy Unit to be part of the rotation for the Authority’s Graduate Trainees.  It was also proposed that the Unit be headed by a new post designated Head of Policy Unit.

The Committee discussed the report in detail and noted that currently, the Council had an inability to “horizon scan” and a Policy Unit would be able to address this problem by picking up on new challenges, key issues, new Government legislation, Green Papers, White Papers etc. and planning for them.

RESOLVED: That

(1)  the Chief Executive be authorised to establish a Policy Unit through, in the first instance, secondment of existing staff;

(2)  the Chief Executive be authorised to appoint a  ...  view the full minutes text for item 8.

The Committee noted a list of proposed dates and times for its future meetings up to and including 11 April 2012.  Immediately before this meeting Committee Members and Officers had attended an all party briefing.  Members were happy to continue to have all part briefings but not on the same day as its meetings.

It was proposed that once the dates for meetings and briefings were finalised it would be appropriate to map the milestones against the dates so everyone was clear about expectations and what should be the subject of report at each Committee meeting.

RESOLVED: That

(1)  the proposed dates and times of future Committee meetings be noted; and

(2)  the Committee’s work plan be mapped out against its meeting dates as referred to above.

[Following the meeting the Committee’s meeting and briefing dates and times were amended slightly and then finalised.  They are included at Appendix A to these Minutes.]

  APPENDIX A

Corporate Governance Committee – Meeting Schedule

(3 Weekly Cycle)