David Wilcock Head of Legal and Governance Reform

Legal & Governance ReformDavidDavid WilcockWilcockHeadHead ofof LegalLegal andand GovernanceGovernance ReformReform

Governance & Committee ServicesFloor 2, Number One Riverside, Smith Street,Rochdale, OL16 1XU

Phone: 01706 647474Website: www.rochdale.gov.uk

To: All Members of the Audit and Governance Committee

Enquiries to: Mark HardmanTelephone: 01706 924704Date: Friday, 28th August 2015

Dear Councillor

Audit and Governance Committee

You are requested to attend the meeting of the Audit and Governance Committee to be held in Training and Conference Suite, First Floor, Number One Riverside, Smith Street, Rochdale, OL16 1XU on Tuesday, 8th September 2015 commencing at 6.15 pm.

The agenda and supporting papers are attached.

If you require advice on any agenda item involving a possible Declaration of Interest which could affect your right to speak and/or vote, please refer to the Code of Conduct or contact the Monitoring Officer or Deputies or staff in the Governance and Committee Services Team at least 24 hours in advance of the meeting.

Yours Faithfully

David WilcockHead of Legal and Governance Reform

Audit and Governance Committee Membership 2015/16Councillor Andy BellCouncillor Neil ButterworthCouncillor Ray DuttonCouncillor James GartsideCouncillor Kieran HeakinCouncillor Peter JoinsonCouncillor Liam O'RourkeCouncillor Aasim RashidAnn TaylorAndrew UnderdownCouncillor Peter Winkler

Rochdale Borough Council

AUDIT AND GOVERNANCE COMMITTEE

Tuesday, 8th September 2015 at 6.15 pm

Training and Conference Suite, First Floor, Number One Riverside, Smith Street, Rochdale

A G E N D A

Apologies for Absence1. Declarations of Interest 1 - 2

Members must indicate at this stage any items on the agenda in which they must declare an interest. Members must verbally give notice of their interest at the meeting and complete the form attached with this agenda.

Members are also advised to take advice with regard to any matter where there is potential bias or predetermination in any business to be considered at the meeting and whether they should take part in decision making at the meeting.

Members are reminded that, in accordance with the Localism Act 2011 and the Council's adopted Code of Conduct, they must declare the nature of any discloseable pecuniary interest; personal interest and/or prejudicial interest required of them and, in the case of any discloseable pecuniary interest or prejudicial interest, withdraw from the meeting during consideration of the item, unless permitted otherwise within the Code of Conduct.

2. Minutes 3 - 7

To approve the minutes of the meeting of the Audit and Governance Committee held on 30th June 2015.

3. Annual Governance Statement 8 - 56

4. Audit Findings Report

The Council’s external auditors, Grant Thornton, are to report on this item

5. Statement of Accounts 2014/15

The Director of Finance to report on this item.

6. RBC Governance Framework 57 - 65

7. Internal Audit - Quarter 1 Report 2015/16 66 - 83

DECLARATION OF INTERESTS

IN ACCORDANCE WITH THE CODE OF CONDUCT ADOPTED BY THE COUNCIL ON 25TH JULY 2012, MEMBERS ARE REQUIRED TO DECLARE DISCLOSABLE PECUNIARY INTERESTS, PERSONAL INTERESTS AND PREJUDICIAL INTERESTS (LISTED ON THEIR REGISTER OF INTERESTS).

MEMBERS SHOULD REFER TO THE CODE OF CONDUCT AND/OR THE MONITORING OFFICER AND/OR THEIR DECLARATION FOR FURTHER GUIDANCE

MEETING AND DATE

…………………………….

Agenda item

Indicate either Discloseable Pecuniary Interest OR Personal Interest OR Personal and Prejudicial interest

Nature of Interest

Signed………………………………………………………………………………………… Please print name…………………………………………………………………………………………..

IF A MEMBER HAS A DISCLOSEABLE PECUNIARY INTEREST THAT HAS NOT BEEN INCLUDED ON THEIR REGISTER SUBMISSION, THEY ARE REQUIRED BY LAW TO UPDATE THEIR REGISTER ENTRY WITHIN 28 DAYS. FAILURE TO PROVIDE PROPER NOTIFICATION IS A CRIMINAL OFFENCE.

THIS FORM, INCLUDING ‘NIL’ ENTRIES, MUST BE GIVEN TO THE GOVERNANCE AND COMMITTEE OFFICER NO LATER THAN AT THE END OF THE MEETING

Summary of discloseable pecuniary interests, personal interests and prejudicial interests.

Disclosable pecuniary interestsA ‘disclosable pecuniary interest’ is an interest of yourself, or of your partner if you are aware of your partner's interest, within the descriptions set out in the table below. "Partner" means a spouse or civil partner, or a person with whom you are living as husband or wife, or a person with whom you are living as if you are civil partners.

Subject DescriptionEmployment, office, trade, profession or vocation

Any employment, office, trade, profession or vocation carried on for profit or gain

Sponsorship Any payment or provision of any other financial benefit (other than from the Council) made or provided within the 12 month period prior to notification of the interest in respect of any expenses incurred by you in carrying out duties as a member, or towards your election expenses.

Contracts Any contract made between you or your partner (or a body in which you or your partner has a beneficial interest) and the Council - (a) under which goods or services are to be provided or works are to be executed: and (b) which has not been fully discharged.

Land Any beneficial interest in land which is within the area of the Rochdale Metropolitan Borough Council.

Licences Any licence (alone or jointly with others) to occupy land in the area of the Borough for a month or longer.

Corporate Tenancies Any tenancy where (to your knowledge) - (a) the landlord is the Council: and(b) the tenant is a body in which you or your partner has a beneficial interest.

Securities Any beneficial interest in securities of a body where -(a) that body (to your knowledge) has a place of business or land in the area of the Borough; and(b) either –(i) the total nominal value of the securities exceeds £25,000 or one hundredth of the total issued share capital of that body; or(ii) if the share capital of that body is of more than one class, the total nominal value of the shares of any one class in which you or your partner has a beneficial interest exceeds one hundredth of the total issued share capital of that class.

Personal InterestsYou have a personal interest in any business of the authority where it relates to or is likely to affect - (a) any body of which you are in a position of general control or management and to which you are

appointed or nominated by your authority;(b) any body -

(i) exercising functions of a public nature;(ii) directed to charitable purposes; or(iii) one of whose principal purposes includes the influence of public opinion or policy

(including any political party or trade union), of which you are in a position of general control or management;(c) the interests of any person from whom you have received a gift or hospitality with an estimated

value of at least £25.

Prejudicial InterestsWhere you have a personal interest you also have a prejudicial interest in that business where the interest is one which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice your judgement of the public interest and where that business -(a) Affects your financial position or the financial position of a person or body described above; or (b) Relates to the determining of any approval, consent, licence, permission or registration in relation

to you or any person or body described above.

MEMBERS ARE ADVISED TO REFER TO THE FULL DESCRIPTIONS CONTAINED IN THECOUNCIL’S CODE OF CONDUCT ADOPTED ON 25TH JULY 2012.

AUDIT AND GOVERNANCE COMMITTEE

MINUTES OF MEETINGTuesday, 30th June 2015

PRESENT: Councillor O’Rourke (in the Chair); Councillors Bell, Butterworth, Dutton, Heakin, Joinson, Rashid and Winkler.

OFFICERS: P. Kane (Director of Finance), D. Wilcock (Head of Legal and Governance Reform/Monitoring Officer), I. Corbridge, I. Hodgeon, S. Smith (Finance Directorate) and P. Thompson (Customers and Corporate Directorate).

ALSO IN ATTENDANCE: G. Mills and G. Nunns (Grant Thornton LLP).

APOLOGIES FOR ABSENCE: Councillor James Gartside.

DECLARATIONS OF INTEREST1 There were no declarations of interests.

MINUTES2 DECIDED – That the minutes of the meeting of the Audit and Risk Management Committee, held 19th March 2015, be approved as a correct record.

PLANNED AUDIT FEE FOR 2015/20163 The Committee considered a report of the Council’s external auditors, Grant Thornton LLP, which informed Members of the Audit and Governance Committee of their fees for the 2015/2016 audit.

The Committee were advised that the Audit Commission had set its proposed work programme and scales of fees for 2015/2016. In the Audit Letter, attached to the report, Grant Thornton LLP set out details of the audit fee for the Council, in respect of 2015/2016, with the scope and timing of their work and details of the relevant personnel from Grant Thornton, who would be working with the Council’s staff in 2015/2016.

The scale fee for the audit had been set at £136,373, which compared to £181,830 in 2014/2015. The reduction in fees had been enabled by the procurement exercises run by the Audit Commission across both local government and health sectors.

DECIDED – That the report be noted.

THE AUDIT PLAN, INCLUDING INTERIM FINDINGS, FOR ROCHDALE BOROUGH COUNCIL4 The Committee considered a report of the Council’s external auditors, Grant Thornton LLP, which gave Members an overview of the planned external audit work in relation to the financial statements and the Value for Money conclusion.

The Committee were advised that the submitted Audit Plan sets out the audit work required on the Council’s financial statements and also the Value for Money conclusion. The Plan highlighted some of the Council’s key challenges and their responses thereto. The report also noted audit risks that have been identified and how the external auditors are going to address these risks through their ongoing

work. Grant Thornton also set out their initial findings from interim audit work undertaken.

The Plan has previously been forwarded to the Council’s Director of Finance for comment and agreement.

DECIDED – That (1) the Committee notes the planned work for the accounts and Value for Money Conclusion, detailed in the Committee’s report;

(2) the Committee notes the findings from the interim audit work carried out by Grant Thornton LLP.

RISK BASED VERIFICATION POLICY 2015/165 The Committee considered a report of the Director of Finance that presented the draft ‘Risk Based Verification’ (RBV) Policy for Housing Benefit and Local Council Tax Support Claims for consideration by this Committee in advance of scrutiny at a future meeting of the Corporate Overview and Scrutiny Committee and consideration for approval by the Cabinet. The purpose of the RBV policy is to specify how Revenues and Benefits will operate an RBV approach to handling claims and to detail the controls and processes that need to be followed to maximise its effectiveness.

The Committee were advised that following the publication of Department for Work and Pensions Circular HB/CTB S11/2011, local authorities are able to implement a ‘risk-based’ approach to verifying claims. The main benefits associated with this approach were two-fold: for low-risk cases we are able to ‘fast track’ applications, which can then deliver service improvements to the customer along with cost efficiencies for the service; and for high-risk cases we are able to more accurately detect fraud and error at the time claims enter the system. The circular extended the RBV approach on a voluntary basis to all local authorities with effect from April 2012.

RBV was a method of applying different levels of verification checks to benefit claims according to the predicted risk associated with those claims. Councils adopting RBV are still required to comply with relevant legislation relating to the production of supporting National Insurance documentation (i.e. to provide evidence of identity for all cases), including those identified as low risk; whilst making use of greater intelligence to target more extensive verification activity on those claims predicted to be at greater risk of fraud and error.

In considering the report in detail Members sought clarification on what were regarded as low, medium and high risk claimants and asked that any future report on this matter include details of comparative data for other Greater Manchester Authorities.

DECIDED – That (1) the Committee notes the draft Risk Based Verification (RBV) Policy for the processing of Housing Benefit and Local Council Tax Support Claims, in advance of its submission to the Corporate Overview and Scrutiny Committee and to the Cabinet;

(2) the Audit and Governance Committee delegate approval for the Finance Portfolio Holder to agree to any minor changes to the policy when reviewed annually.

INTERNAL AUDIT - QUARTER 4 REPORT 2014/156 The Committee considered a report of the Director of Finance summarising the work of the Internal Audit Team undertaken during the fourth quarter period of

2014/2015 (January – March). The Director of Finance reported that on this occasion two areas of planned or unplanned work resulted in an audit assurance opinion of “limited”, whereby a number of key issues are not managed effectively and the control systems that were in place were in need of significant improvement. Both were discussed in detail and the Head of Internal Audit confirmed that further follow-up audits will be completed in 2015 to ensure that all the agreed actions have been completed in a timely manner; the outcomes of these audits will be reported back to future meetings of this Committee. The report enabled the Committee to scrutinise the Internal Audit coverage during the fourth quarter of 2014/2015 on all services within the Council’s remit.

The report contained details and related commentaries on unplanned areas of work outside of the audit plan undertaken and the performance measures for the Internal Audit Service. The Committee was reminded of recent changes to the methodology to a red, amber or green assurance opinion, which brought it into line with the methodology adopted in other parts of the Council. This had been agreed at a previous meeting of the former Audit and Risk Management Committee and was now embedded within the Internal Audit’s reporting processes.

The Director of Finance undertook that, for future quarterly performance reports, there would be data included relating to analysis of trends, to be included in the section of the report which details “Internal Audit’s performance measures”.

DECIDED – That (1) the report be noted;(2) future quarterly performance reports include data relating to the

analysis of trends, to be included in the section of the report which details with “Internal Audit’s performance measures”.

INTERNAL AUDIT - ANNUAL REPORT 2014/157 The Director of Finance summarised the work and outcomes of Internal Audit during 2014/2015 which supported the Head of internal Audit’s overall opinion on internal control, governance and risk management for 2014/2015. This opinion is included within the Annual governance statement which will be approved by this Committee alongside the Annual Statement of Accounts in September. The Annual Report included an overview of all audits undertaken within the year, all of which have previously been summarised in quarterly Internal Audit reports to this Committee.


INTERNAL AUDIT - ANNUAL FRAUD REPORT 2014/158 The Director of Finance submitted a report that provided a summary for those charged with responsibility for governance on the outcome of proactive and reactive anti-fraud and investigation work during 2014/2015, with a particular focus on the work delivered by Internal Audit. The report also outlined some of the areas of emerging fraud risk and the Council’s strategic and operational arrangements for managing these risks.

The Committee were advised that the Council was inherently vulnerable to risks of fraud and corruption. In response to these risks the Council has a range of mitigating controls that are used to both prevent and detect fraud and other similar malpractice that may exist within the Council. This report is therefore to inform the Audit and Governance Committee of the various actions and measures that have been taken during 2014/2015 to mitigate the risks of fraud.


CORPORATE RISK REGISTER - ANNUAL REVIEW9 The Director of Finance submitted a report which informed members of the committee of the current view of the Council’s leadership team in relation to Corporate Risks, which followed a recent review of the Corporate Risk Register by the Leadership Team.

The Council’s Risk Management Strategy had previously been approved by the former Audit and Safeguarding Committee on 13th March 2014. This Strategy provides for the maintenance of a Corporate Risk Register, with ownership expected to rest largely with the Leadership Team, and Service based risk registers, with ownership being devolved to appropriate levels of management within the respective Services.

The Council’s Head of Internal Audit, the Director of Finance and the Monitoring Officer have been working with the Leadership Team to review and update the Corporate Risk Register to ensure it remains relevant and appropriate to the current status of the Council. A copy of the Corporate Risk Register was appended to the submitted Committee report for Member’s information and as such represented the Leadership’s current view on the status of the management and evaluation of corporate risks and is presented to the Audit and Governance Committee in view of their overall responsibility for governance and risk management.

In considering the report a Member asked for details of the risks that the Authority faced with regard the devolution of powers and functions to the Greater Manchester Combined Authority and the elected mayor for Greater Manchester from 2017. The Director of Finance undertook to liaise with the Chief Executive with a view to him providing a presentation for members at a future meeting of the Council around issues relating to the devolution of powers and functions to the Greater Manchester Mayor and Combined Authority.

DECIDED – That (1) the report be noted;(2) the Chief Executive be requested to provide a presentation for

members, at a future meeting of the Council, around issues relating to the devolution of powers and functions to the Greater Manchester Mayor and Combined Authority.

FUTURE ACTIVITIES OF THE AUDIT AND GOVERNANCE COMMITTEE10 The Monitoring Officer informed Members that he was looking to develop a robust and thorough work programme for the Committee that encompassed both Standards and Audit related matters, which he undertook to present to the Committee’s next meeting.

Members of the Committee discussed the Council’s decision making processes and there were feelings expressed that the current model devolved too much power and responsibility to the members of the Cabinet. The Committee agreed to establish a working party to look at matters relating to the governance of the Authority and investigate the possibility of devising ways of involving more of the Council’s 60 Members in the decision making processes.

DECIDED – That (1) the report be noted;(2) the Head of Legal and Governance Reform be requested to make

arrangements for the establishment of a small working party, comprising members of the Council’s political groupings, to investigate the Authority’s

decision making processes, and examining the possibility of involving more of the Council’s 60 members in that decision making process.

Subject: Annual Governance Statement 2014/15

Status: For Publication

Report to: Audit and Governance Committee

Cabinet Member: Cabinet Member for Corporate Services and Regulation

Date: Tuesday, 8 September 2015

Report of: Head of Legal & Governance

Author Email: [email protected]

Author: David Wilcock

Tel: 01706924170

Comments from Statutory Officers:

Monitoring Officer: YesSection 151 Officer: Yes

Key Decision:

1 Purpose of the report

1.1 The Council is required under Regulation 4(3) of the Accounts and Audit Regulations 2011, to produce an Annual Governance Statement (AGS) to accompany the Annual Statement of Accounts, which must be signed by the Leader of the Council, Chief Executive, Director of Finance and the Monitoring Officer. This statement should be considered following a review of the effectiveness of the Council’s system of internal controls as required by the Accounts and Audit Regulations 4(2).

2 Recommendations

2.1 It is recommended that Members approve the Annual Governance Statement 2014/15 at Appendix A.

3 Background

3.1 Rochdale Borough Council is required to prepare an Annual Governance Statement; a statutory requirement set out in Regulation 4(3) of the Accounts and Audit Regulations 2011. In doing so the Council complies with the principles of corporate governance set out in the CIPFA/SOLACE Good Governance Framework (2007- reviewed and revised in 2012).

3.2 The Annual Governance Statement is a key corporate document with the Chief Executive and the Leader having joint responsibility as signatories for its accuracy and completeness. It is also important that all other senior officers provide assurances to the process.

3.3 The preparation of the Annual Governance Statement has been overseen and approved by Directors supported by senior management as a corporate document. The Council has established a process whereby progress against governance challenges is reviewed on an ongoing basis through the Governance Board, an officer

led body with overall responsibility for ensuring the objectives within the Code of Corporate Governance are achieved.

3.4 In compiling the Annual Governance Statement, a review of the effectiveness of the Council’s systems of internal controls, has been conducted, with assurance also provided through a self-assessment process facilitated by Directors Assurance Statements.

3.5 This self-assessment process has been developed against annual governance standards / best practice and has been directed towards both the Leadership Team and all Service Management Teams who have a collective responsibility for completing and signing off the self-assessments for each Service area in this context.

3.6 This self-assessment also provided a means of identifying areas for improvement through the production of an action plan, where considered appropriate, within each Service area. The outputs from this process have also therefore been a primary source of information that has fed into the preparation of and support for the AGS produced, as well as the overall action plan that is produced.

The Purpose of the Annual Governance Statement

3.7 The purpose of the AGS process is to provide a continuous review of the effectiveness of the Council’s internal control and risk management systems, so as to give assurance on their effectiveness and/or to produce a management action plan to address identified weaknesses in either process. At its most effective, the process of preparing the AGS adds value to the corporate governance and internal control framework of the Council.

3.8 The arrangements required for gathering assurances for the preparation of the AGS provide an opportunity for Council’s to consider the robustness of their governance arrangements. In doing so, Councils need to recognise that this is a corporate issue, affecting everyone in the organisation. It is also important to recognise that the purpose of the AGS is not just to be ‘compliant’, but also to provide an accurate representation of the arrangements in place during the year and to highlight those areas where improvement is required. This will also demonstrate to stakeholders what those arrangements are.

The Governance Framework / Governance Principles

3.9 The CIPFA/SOLACE Good Governance framework is a discretionary code but the Council is judged against it as part of best practice. The original framework outlines six core principles of good governance focusing on the systems and processes for the direction and control of the organisation and its activities through which it accounts to, engages with and leads the community.

3.10 The CIPFA/SOLACE governance framework clearly sets out the fundamental principles of corporate governance, these are:

Focusing 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 behavior;

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

Annual Governance Statement 2014/15

3.11 The AGS relating to year ending 31st March 2015 is attached for your information as Appendix 1. It has four key areas, as follows:-

A description of the elements that make up the governance framework in the Council based on the six principles (Section 4) including a review of the effectiveness of the elements, and a summary of areas where improvements to the governance system are required;

The annual audit opinion from the Head of Internal Audit; External Review and Inspection reports and; An action plan to address issues raised and ensures that there is continuous

improvement in the governance systems.

2014/15 AGS Action Plan – Summary of Progress

3.12 The Governance Board has been making significant progress in implementing and overseeing the actions highlighted within the Annual Governance Statement action plan 2014/15 and also the Corporate Governance, Policy and Performance Framework

3.13 The 2014/15 AGS Action plan is attached at Appendix 2. In Summary out of the 45 actions identified:

36 actions are Complete and have been Signed off / Approved at the Governance Board

6 actions are Green - on track & expected to be completed by target date

2 actions are Amber - Off track

Currently there is 1 action which is Red - Off track and currently cannot be delivered within one month of target date. These actions are required to be escalated to the Governance Board and Leadership Team.

3.14 Those areas that cannot be reported as ‘completed’ and/or remain a priority will be incorporated/reflected within the AGS Action Plan for 2015/16.

Alternatives considered

3.15 No alternatives have been considered.

4 Financial Implications

4.1 No specific financial implications. The production of the AGS aligns with the production of the Annual Accounts and is published alongside the audited accounts which are required to be approved by end of September 2015.

5 Legal Implications

5.1 The Authority is required to prepare and publish an Annual Governance Statement to meet the statutory requirement set out in Regulation 4 of the Accounts and Audit Regulations (2011). Failure to do so could result in non-compliance with the requirements of the Regulations.

5.2 The Council has a Governance Board which oversees the Governance arrangements within the Council and communicates with key managers.

6 Personnel Implications

6.1 There are no personnel implications as a result of this report.

7 Corporate Priorities

7.1 The Annual Government Statement 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.

8 Risk Assessment Implications

8.1 Our approach to risk management and Governance is outlined within the Annual Governance Statement and the Governance Board will monitor risks.

9 Equalities Impacts

9.1 Workforce Equality Impacts Assessment

There are no significant workforce equality issues arising from this report.

9.2 Equality/Community Impact Assessments

There are no significant equality/community issues arising from this report.

Background PapersDocument Place of Inspection

Code of Corporate Governance and Statement of Internal Control

Accounts and Audit Regulations 2003 & 2011

Delivering Good Governance in Local Government CIPFA/SOLACE

Code of Practice in Internal Audit in the UK CIPFA 2006

CIPFA: Delivering Good Governance in Local Government: Framework Addendum 2012

No. 1 Riverside, Smith Street, Rochdale, OL16 1XU





ANNUAL GOVERNANCE STATEMENTAnnual Governance Statement Year Ended 31st March 2015


www.rochdale.gov.uk 1

GOVERNANCE STATEMENT

ANNUAL GOVERNANCE STATEMENT YEAR ENDED 31st MARCH 2015

Section Detail Page1 Introduction and Scope of Responsibility 22 The Purpose of the Governance Statement 23 The Accounts and Audit (England) Regulations 2011 - Regulation 6 34 The Governance Framework and its Effectiveness 3

4.1 Focusing on the purpose of the authority and on outcomes for the community and creating and implementing a vision for the local area

5

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

9

4.3 Promoting values for the authority and demonstrating the values of good governance through upholding high standards of conduct and behaviour

12

4.4 Taking informed and transparent decisions which are subject to effective scrutiny and managing risk

17

4.5 Developing the capacity and capability of Members and officers to be effective

22

4.6 Engaging with local people and other stakeholders to ensure robust accountability

24

5 Internal Audit and the Opinion on Internal Control 2014/15 266 External Audit and Inspection Reports 277 Action Plan to ensure continuous improvement of the Governance

Framework 28

Signed on behalf of Rochdale Borough Council by Director of Finance 36Chief Executive Monitoring Officer

3636

Leader of the Council 36



1. INTRODUCTION AND SCOPE OF RESPONSIBILITY

Rochdale BC is responsible for ensuring that its business is conducted in accordance with the law and proper standards, that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. Rochdale BC 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, Rochdale BC is responsible for putting in place proper arrangements for the governance of its affairs, facilitating the effective exercise of its functions, which includes arrangements for the management of risk.

Rochdale BC has approved and adopted a Code of Corporate Governance, which is consistent with the principles of the CIPFA / SOLACE Framework Delivering Good Governance in Local Government. This statement explains how Rochdale BC has complied with “The Code” and also meets the requirements of regulation 4(3) of the Accounts and Audit (England) Regulations 2011 in relation to the publication of an annual governance statement.

2. THE PURPOSE OF THE GOVERNANCE STATEMENT

The Governance Framework comprises of 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 Rochdale BC 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.

http://www.rochdale.gov.uk/council_and_democracy/policies,_strategies__reviews/strategies/corporate/code_of_corporate_governance.aspx



The Governance Framework has been in place at Rochdale BC for the year ended 31st March 2015 and up to the date of approval of the Statement of Accounts on 8th September 2015. The process of review and monitoring of governance arrangements across the Council is an ongoing process with updates provided throughout the year to the Audit and Governance Committee.

3. THE ACCOUNTS AND AUDIT (ENGLAND) REGULATIONS 2011 – REGULATION 6

In order to comply with the Accounts and Audit (England) Regulations 2011, the Authority must, at least once a year, conduct a review of the effectiveness of its internal audit.

The Internal Audit Annual Report presented to the Audit and Governance Committee provides an overview of the work and performance of the Internal Audit team. Details of work completed and the performance of Internal Audit during the year has been summarised in quarterly reports to the Audit and Governance Committee. This provides an ongoing view of the effectiveness of the overall internal control environment and provides the Members with an opportunity to challenge and scrutinise specific issues identified within each Service area. Performance monitoring of the Internal Audit function is also supplemented through frequent interaction between the Head of Internal Audit and Director of Finance in conjunction with line-management responsibilities.

Internal Audit has completed a self-assessment against the Public Sector Internal Audit Standards which confirmed a conformance rate of 94%, with a further 3% of partial conformance. This self-assessment was verified and signed off by the Chief Finance Officer in March 2015. This also supports the positive opinion expressed by Grant Thornton as part of their 2014/15 external audit, which confirmed that their “review of internal audit work has not identified any weaknesses which impact on our audit approach”.

The Council can also confirm that the assurance arrangements comply fully with CIPFA’s Statement on the Role of the Head of Internal Audit in Public Service Organisations 2010.

4. THE GOVERNANCE FRAMEWORK AND ITS EFFECTIVENESS

The key elements of the system and processes that comprise the Authority’s governance arrangements are detailed in this section. The elements are based on the six principles of Corporate Governance, which tie in with our Code of Corporate Governance, the Governance Framework and the assurance gathering principles laid out in the CIPFA Finance Advisory Network “Rough Guide for Practitioners”.



The six principles are detailed below:1. Focusing on the purpose of the Authority and on outcomes for the community and creating

and implementing a vision for the local area;2. Members and officers working together to achieve a common purpose with clearly defined

functions and roles;3. Promoting values for the Authority and demonstrating the values of good governance through

upholding high standards of conduct and behaviour;4. Taking informed and transparent decisions which are subject to effective scrutiny and

managing risk;5. Developing the capacity and capability of Members and officers to be effective; and6. Engaging with local people and other stakeholders to ensure robust accountability.

Annual Self-Assessment of our Effectiveness

Rochdale BC has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. To support this review, every Director is required to complete an annual assurance statement in conjunction with their Senior Management Teams to assess the adequacy of the governance arrangements across a number of governance standards.

The outputs from this process have also been a primary source of information to feed into the preparation of and support for the AGS, as well as the overall action plan that is produced.

The review of effectiveness is also informed by the Head of Internal Audit’s annual report, together with external scrutiny by the external auditors and other review agencies and inspectorates.

The following paragraphs detail the governance framework of Rochdale BC, which collectively underpin the six principles; providing an analysis of the effectiveness of each element of the framework, and areas where improvements are required which flow through to the action plan at the end of the statement.



4.1 FOCUSING ON THE PURPOSE OF THE AUTHORITY AND ON OUTCOMES FOR THE COMMUNITY AND CREATING AND IMPLEMENTING A VISION FOR THE LOCAL AREA

Why is this important?

All Local Authorities have a “well-being” duty. This means we are responsible for helping to achieve the best quality of life and outcomes for people locally.

We do this through:

Corporate Planning Performance Management Financial Management Arrangements / Value for Money / Savings Programme Corporate Complaints Effective Communication Partnerships Association of Greater Manchester Authorities / Greater Manchester Combined Authority

All of the above ensure that users receive a high quality of service whether directly, in partnership or by commissioning, the Authority makes best use of its resources and service users receive excellent value for money.

How effective is this?

Vision, Corporate Plan and performance

The Council's vision is to build success and prosperity with our citizens and partners, whilst protecting our vulnerable people.

The Sustainable Community Strategy sets the overall Borough wide vision and three Borough wide objectives: people, place and prosperity. A copy of our Sustainable Community Strategy 2011 – 2021 can be viewed at: http://www.rochdale.gov.uk/pdf/2012-01-11-LSP-Community-Strategy-v1.pdf

The Corporate Delivery Plan is a public facing document, setting out the Council’s key priorities for the year ahead. Beneath the Corporate Delivery Plan sit the Directorate Plans, which contain

http://www.rochdale.gov.uk/pdf/2012-01-11-LSP-Community-Strategy-v1.pdf

http://www.rochdale.gov.uk/pdf/2012-01-11-LSP-Community-Strategy-v1.pdf



details of those key delivery activities which will contribute to the achievement of the corporate priorities.

Township Plans have also been developed in line with the Directorate Plan approach.

The preparation of the Corporate Plan for 2016/17 includes a review of the vision and priorities of the Council in line with the current review of the Financial Strategy for 2016 to 2019. The Plan will ensure it is fully integrated with the Council’s budget so that resources are allocated to our priority areas; this also includes the development of Directorate Plans. The review of the 'golden thread' approach to corporate planning will also be undertaken, partly due to key strategic strategies and priorities requiring updates and also with the changes at Greater Manchester (GM) level in terms of devolution.

As part of the Performance Management Framework, the newly established Overview & Scrutiny Committees (Corporate Overview and Scrutiny Committee, Communities, Regeneration and Environment Overview and Scrutiny Committee, Health, Schools and Care Overview and Scrutiny Committee) receives quarterly updates on each of the Corporate & Directorate Plans.

The performance management framework was refreshed in 2014 to provide even clearer linkages to Corporate Plan objectives resulting in a reduced number of performance indicators which are relevant to the Council’s current delivery and ongoing effective management.

Budget Challenges

Options have been considered by Members to achieve a balanced budget over the next 2 years. Budget Fixing Council on the 24 of February 2015 considered the latest phase of savings and approved the overall budget for 2015/16. Difficult decisions have been made by Councillors in what has been a challenging process to balance the budget while taking into account reductions in funding and increases in demand for services.

With further savings required to be achieved in 2016/17 our Value for Money (VFM) approach and Savings Proposals will set challenging savings requirements that we expect from our Services – low cost, high performance, successful outcomes and satisfied customers. This has been an action in previous year’s plans which we have achieved. The Director of Finance challenges all Services on value for money and service delivery.

Corporate Complaints



Complaints reporting mechanisms are in place across all channels, and processes established to investigate, respond to and resolve all complaints received. Corporate complaints and social care complaints are reported to Overview and Scrutiny Committee on a regular basis, which the Council’s communications team are able to publicise, as appropriate.

Communication

The recruitment to the new Communication & Marketing Manager post has now been completed and the Council is now reviewing and establishing a range of communication methods to ensure that the public and employees are clear about the corporate priorities and major new initiatives:

Communications team focussed on ensuring the Council’s messages are understood by staff and reflected as accurately as possible externally, for example through the local media;

The Intranet is used to communicate issues arising from Senior Management Team meetings;

Directors cascade key issues from Leadership Team meetings for discussion at regular team meetings; and

Regular briefings for all staff to update them on key initiatives and changes, which include the Council’s approach to dealing with spending reductions.

Partnerships

Our Partnership Framework continues to ensure our contractual partnerships are effective and that we maximise the contribution that they make to our Vision and Plans.

RBC is committed to working effectively with its partners. Good corporate governance arrangements are in place to help the Council to:

maintain high quality services; deliver improvements; and Know whether partnerships are providing value for money and added value.

The Council has four significant contractual partners, Agilisys, Rochdale Borough wide Housing (RBH), Rochdale Cultural Trust (Link4Life) and Rochdale Development Agency (RDA) and six strategic partnerships:



Public Service Reform Board;

Health & Wellbeing Board (now a committee);

Rochdale Safer Communities Partnership;

Children and Young Peoples Partnership;

Economic Alliance and the Skills and Work Advisory Group; and

Strategic Housing Partnerships.

These partnerships are committed to improving outcomes for local people by increasing

collaboration and integration of services. Performance reports are regularly reported to Cabinet

and the Overview and Scrutiny Committees. Contractual partnerships and governance still

requires a focused piece of work with a communication plan with our staff and customers about

their roles and responsibilities and our relationship with them; a lead is to be identified.

Association of Greater Manchester Authorities (AGMA) and the Greater Manchester Combined Authority

The Council continues to work with the other nine Greater Manchester Councils, mainly on strategic work which crosses Council boundaries, e.g. transport, waste disposal, economic development and strategic planning. We also work jointly with other Authorities on individual functions to increase efficiency and reduce costs.

Implications for Rochdale Council of the recent Agreement with Government to devolve functional and fiscal responsibilities alongside a staged approach to GM governance arrangements have been reviewed to ensure these are strongly aligned with the Council’s priorities and will support their delivery. New Governance arrangements will be necessary as part of the Devolution Agreement. It is expected that new proposed arrangements will build on both local experience and the Greater Manchester governance review rather than on importing models from elsewhere and, as part of this process, any impact on governance arrangements will be identified and responded to.



4.2 MEMBERS AND OFFICERS WORKING TOGETHER TO ACHIEVE A COMMON PURPOSE WITH CLEARLY DEFINED FUNCTIONS AND ROLES

Why is this important?As an organisation we will be better and achieve more if we all want and strive to achieve the same things. It is important that everyone within our organisation understands their role, what they are responsible for and how they contribute.

We do this through:

Political Leadership Constitution Member Officer Protocol Councillor Enquires / MP Enquiries


Member and Officer Relationships are mutually supportive and based on openness, honesty, trust and appropriate challenge. Political leadership provides an important link between the strategic goals of the Authority and outcomes for the community. Elected Members responsible for decision making on the Authority’s Cabinet have lead portfolio holder responsibilities for Services; Cabinet Members have Assistant Portfolio Holders identified to assist them. The Assistants may attend meetings and speak on behalf of the Cabinet Member but cannot exercise any formal decision making role on behalf of the Cabinet Member. There are also Shadow Portfolio Holders from the opposition party who shadow the Portfolio Holders for their specific areas of Council operation.

There are some formalised roles for them for e.g. the Children’s Services Shadow Portfolio Holder has a role on the Corporate Parents Board and the Neighbourhood Safer Communities Partnership. Portfolio Holders may consult with the Shadows on matters relating to the Portfolio. This ensures appropriate links are made with senior officers to guide strategy and decision making. Meetings of the party leaders with senior officers are held on a regular basis and key strategic decisions are taken in meetings of the full Council, an all-party decision making forum. Collective briefings are held with Portfolio Holders and opposition Portfolio Holders on key reports requiring decision.



The roles and responsibilities for the executive and non-executive functions, Cabinet, Council, the various Overview and Scrutiny committees and all committees of the Council, along with officer functions are defined and documented, with clear delegation arrangements and protocols for effective communication within the Council's Constitution.

As a result of the Government’s deficit reduction, options are being considered as part of the 2016/17 savings proposals to continually refine the Authority’s organisational structure, ensuring it is fit for purpose with clearer responsibility and accountability at both strategic and operational levels taking in to account future budget reductions.

Constitution

The review of the Council’s Constitution is, as reported to the Annual Meeting of the Council held on 19th May 2015, now regarded as concluded. The final series of updates were agreed, under delegated powers, by the Licensing and Regulatory Committee at meetings held on 23rd February and 30th March 2015. As is required, the Annual Meeting re-affirmed the Council’s Constitution as adopted by the Council on 25th July 2001 and as amended subsequently. In doing so, Council agreed that the Monitoring Officer be authorised to amend the Constitution subsequent to decisions taken at the Annual Meeting, to reflect matters arising from organisational or other review; and to amend the Scheme of Delegation to Officers on matters arising from legislative and/or approved operational changes, and to report these matters to the Council on a six monthly basis. For amendments outside of that arrangement, these must be approved by the Council on, where appropriate, the recommendation of the Committee of the Council charged with consideration of governance matters.

At the Annual Meeting of the Council held on 19th May 2015 a number of changes to the Council’s decision making arrangements were agreed. A review of the Council’s overview and scrutiny arrangements saw the establishment of three Overview and Scrutiny Committees:-

a Corporate Overview and Scrutiny Committee to scrutinise the supporting corporate services of the Council and to maintain a ‘strategic’ overview of the Council;

a Communities, Regeneration and Environment Overview and Scrutiny Committee bringing together all aspects of economic regeneration, and the supporting work of services such as leisure, highways, housing, environmental services etc., that provide the opportunities for work and the improvement of life experiences for the Borough’s communities; and



a Health, Schools and Care Overview and Scrutiny Committee bringing together developing linkages around the Health and Wellbeing Board such as integrated commissioning; joint interests such as safeguarding; joint/partnership working with the CCG etc. across relevant Council services and those of other parties who might be expected to have an involvement in the Committee, for example through the health scrutiny function and consideration of education related matters.

The Council also established an Audit and Governance Committee to take on the responsibilities of the former Audit and Risk Management Committee and Standards Committee. These two Committees had considered and supported a merger proposal at their meetings held in March 2015, and the Council formally enacted the merger, together with the addition to the terms of reference of a small number of non-executive functions. As part of the process of transferring those non-executive functions, Licensing and Regulatory Committee became the Planning and Licensing Committee, to better reflect the core functions of that Committee.

The refreshed Constitution is available on the Council’s website and is accessible for both the public and staff.

Member / Officer Protocol / Training

All elected Members have received Code of Conduct training. Following the elections, dates are being arranged for new Members to be trained on the Members Code of Conduct.

The Council’s E-Learning platform Virtual College has been used to great effect in delivering mandatory training across the workforce in areas such as Information Governance and Fraud.

A review of the Council’s corporate arrangements for employee declaration of interests was undertaken. The Review identified what is currently in place and the extent of usage. The review also identified that the system was being used to a very limited extent.

The next stages of the project will involve considering the expansion of the Corporate Declaration of Interests arrangements, including the communication of the arrangements and the extension to agency staff and consultants.



Councillor Enquiries/ MP Enquiries

In conjunction with Members, the Member Enquiry System has been further developed to capture queries from Members and MPs to streamline the enquiry process.

The system produces reports which indicate a number of factors including the speed of resolution by the service and any outstanding queries from the Member/MP/Service. Contacts have been assigned in each service for Members to contact to log their queries.

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

Why is this important?The standards that local authorities set provide an example to all organisations and individuals as employers, employees and Members of their townships and wards. The costs of Council services are met from public funding and it is important that local authorities uphold high standards of conduct and behaviour.

We do this through:

Director of Finance Monitoring Officer Interim Director of Public Health (Senior Information Risk Owner (SIRO)) Training & Development Policies & Procedures Code of Conduct External Inspections Business Continuity / Emergency Planning


The Council keeps all staff aware of changes in policy and new legislation as necessary, by a variety of means, and where appropriate arranges training for all or key members of staff. Staff have recently received communication on Gifts & Hospitality and reminded when and how to declare.



The Standards Committee and the Monitoring Officer have provided advice, training and help to Councillors on the ethical framework. Councillors and officers are made aware of their responsibilities, and the behaviours expected of them under the framework.

The management of and adherence to the Council's wider statutory obligations relies heavily on devolved working arrangements, with Legal Services advising all services on legislation as required.

Role of Chief Executive

Our Head of Paid Services is the Chief Executive who operates in accordance with relevant statute and professional guidance.

Role of the Director of Finance as Chief Finance Officer

The Council complies fully with the principles of CIPFA's Statement on the Role of the Chief Finance Officer in Local Government 2010. The Director of Finance as Section 151 Officer and Chief Finance Officer is a member of the Leadership Team and has the right of unfettered access and reporting to the Chief Executive, Leadership Team, Cabinet and Council.

Role of the Monitoring Officer

The role of our Monitoring Officer is critical in promoting and maintaining high standards of conduct and ensuring that decision making processes and services are provided in accordance with legislation and within the powers of the Authority. The Monitoring Officer also has responsibility to review the content, coverage and operation of the Constitution to ensure that it remains current and meets all legal and good practice requirements.

Role of the Senior Information Risk Owner

The role of Senior Information Risk Owner (SIRO) is responsible for ensuring that management of information risks are weighed alongside the management of other risks facing the organisation such as financial, legal and operational. The RBC SIRO for 2014/15 and 2015/16 is the Interim Director of Public Health.



The roles of the Director of Finance, Monitoring Officer and SIRO were communicated out to staff during the year to promote greater awareness amongst staff following feedback received from an ethical governance survey.

Codes of Conduct for Elected Members and Officers

Our Codes of Conduct for Elected Members and officers commit all those working within the Authority to high standards of personal conduct and behaviour, and to act ethically and with integrity in their dealings with each other and the public.

Policies & Procedures

The Council has established policies and procedures to govern its operations. Key within these are the Financial Regulations Contract Procedure Rules, Risk Management Strategy, and Codes of Conduct for Members and officers.

The Council’s Anti-Fraud and Corruption Strategy, including the Whistleblowing Policy, was reviewed in December 2014 and is available to all officers and Councillors on the Council’s website.

The Council’s Corporate Safety Policy covers the health and safety at work of employees or others who may be affected by their undertaking, and has been updated and disseminated across the Authority.

The following Policies and Guidance documents are currently being developed and will be issued during 2015/16:

Information Governance Policy – awaiting final sign off from Leadership Team Overarching ICT Policy - awaiting feedback from 2015 Public Sector Network

submission to update and finalise.

Significant work has been undertaken on the development of the Policy Centre; this includes the ongoing review of existing policies and strategies held on both the Council’s website and intranet.

Currently there are over 130 Policies, Strategies and Guidance documents within the policy centre and this number is increasing as Directorates add documents into the system.



Management of the overall system will sit within the Performance and Transformation Team, with Directorates responsible for day to day management of their documents.

Business Continuity / Emergency Planning

The Council has reviewed Business Continuity arrangements and developed a new Business Continuity Policy, Corporate Business Continuity Plan and Service specific plans. . ICT Services have been provided with a list of ICT requirements based on priority need and a Disaster Recovery Plan has been developed for the purposes of supporting all services in relation to ICT provisions.

The Council now has an Emergency Response and Recovery Plan in place that sets out various roles within the Council. The plan also defines Command and Control structures within the Council and across Greater Manchester.

At the end of 2014 a self-assessment report was completed to identify the preparedness of the Council. The assessment was extremely positive and indicated that the Council have put in place the necessary measures to respond to an emergency.

The Emergency Response and Recovery Plan is currently being reviewed along with the Council’s emergency planning website.

The Council have fully trained emergency response officers who are on a 24/7 rota:

Strategic (Gold) Tactical (Silver) Operational (Forward Incident Officer)

The Community Service’s team and AGMA CCRU (who provide AGMA support for civil contingencies) have ensured that generic and specific emergency response plans are in place specifically for Rochdale and Greater Manchester.

Training and exercise sessions are conducted throughout the year to ensure that all Council responders are fully aware of response arrangements, and further training will be provided by the 1st September 2015.



A Local Resilience Forum has been established to provide a local forum for exercising of local plans and information sharing and co-ordination between borough emergency responders at a tactical and operational level across Rochdale.

External Inspections

Children’s Improvement Journey

As a follow up to the Ofsted report issued in 2012/13, a further Improvement Notice was issued by the DCLG in April 2014 reflecting the progress made so far and the opportunity to refocus targets and address those weaknesses identified in the Council’s self-assessment and LGA Peer Review that took place in September 2013.

The amended Notice highlighted specific actions in the following areas for further improvement:

o Leadership and Governance; o Quality Of Practice;o Local Safeguarding Children’s Board;o Early Help and Partnership Working; ando Performance.

Ofsted also completed an unannounced Inspection of services for children in need of help and protection; children looked after and care leavers in Rochdale in October 2014, which also included a 4 day thematic inspection of Child Sexual Exploitation (CSE).

The Council were praised for our highly effective partnership working and innovative use of powers in tackling this issue. Ofsted commented that change was being delivered “at pace”, driven by well-established systems which use “even the softest intelligence to best effect.”

Praise was given to our Local Safeguarding Children Board for its strategic leadership, the Council for its mandatory approach to Member training and to the Sunrise team, which works with children at risk of CSE. The Multi Agency Screening Service (MASS), which deals with referrals using the data and expertise of social workers, police, health and charities, was also recognised for its timely response and effective information sharing.



The work delivered by our licensing team was highlighted, as this is seen to be leading the way nationally. The arrangements in place within our Legal Service for disclosure of information and the single point of contact were also singled out for praise.

The Council’s Partnership Enforcement Team, a cross-council and cross-agency team, was also highlighted for its effective work and use of intelligence to tackle CSE.

Our approach to information sharing across all departments and agencies and the use of existing enforcement powers in housing, health and safety, licensing and anti-social behaviour orders are highlighted in the report as being areas of best practice.

Following this inspection and the feedback received; on the 6th July Ofsted confirmed that the Improvement Notice would be lifted with immediate effect as was no longer considered necessary due to the strong progress in addressing issues raised in the Ofsted Inspection.

LGA Peer Review

The Council will be undertaking a LGA Peer Review in September 2015 looking at opportunities and challenges of self-regulation, improvement and innovation. The Council has agreed the scope of the Peer Review with the LGA which will focus on the Growth Strategy together with the standard lines of enquiry in relation to Understanding of Local Context and Priority Setting, Financial Planning and Viability, Political and Managerial Leadership, Governance and Decision Making and Organisational Capacity.

4.4 TAKING INFORMED AND TRANSPARENT DECISIONS WHICH ARE SUBJECT TO EFFECTIVE SCRUTINY AND MANAGING RISK

Why is this important?The core purpose of good governance in public services is to ensure public bodies take informed, transparent decisions and manage risk. It is also essential that decisions are fair and effective as well as being timely and proportionate. This provides greater levels of accountability throughout the organisation. Managing our risks is important to ensure we take advantage of our opportunities (positive risks) and that we do everything we can to ensure that negative risks do not reduce our chances of success. Understanding risk also helps us to make better decisions about the best course of action to take to achieve our vision and purpose.



We do this through:

Overview & Scrutiny Committee Governance Board Informed Decision Making Training & Development Information Security Transparency Freedom of Information Risk Management


Scrutiny

As outlined in principle 2 the Corporate Overview and Scrutiny Committee scrutinises organisational and financial performance and maintains an oversight of the work of the Leadership.

The Audit & Governance Committee has overall responsibility for governance within the Council, providing Members with the ability to challenge senior officers on any areas where weaknesses are identified within the internal control framework and seek assurances that agreed actions are being completed within agreed timescales. With effect from June 2015, this will also include the work of the former Standards Committee in maintaining an oversight of conduct and behaviours.

Following consultation with Directors and senior management, the Internal Audit Team produces an Annual Audit Plan which focuses on key financial and non-financial risks in each audit area. The Internal Audit Annual Audit Plan was reviewed and approved by the Director of Finance and Audit and Governance Committee.

Governance Board

Decisions are based on rigorous and transparent scrutiny and an excellent relationship between officers and Members based on openness and mutual trust (as set out in Principle 2).The Council has a Governance Board, an officer led body chaired by the Monitoring Officer which oversees the Governance arrangements within the Council and communicates with key managers. The



membership of the Governance Board has been reviewed in 2014/15 and now includes the Director of Finance and senior officers across the Authority with responsibilities for Governance and Risk.

The Board has continued to monitor progress of the AGS action plan and will have a rolling programme to receive regular performance reports and updates on the Council’s corporate governance issues. The Board will also receive regular feedback from internal and external audit highlighting any key issues and recommendations. The Board reports progress regularly to the Audit & Governance Committee.

Report planning and preparation and informed decision making

There are open and transparent mechanisms for documenting all decisions made within theAuthority. There are report templates and all information and delegated decisions are available electronically on the Modern.Gov system.

The Modern.gov system was implemented in May 2014 within the Council to facilitate committee reporting. The system has been designed to ensure that decisions with legal or financial implications can only be made after seeking the advice of the Director of Finance and Monitoring Officer.

A review is currently being undertaken on the performance and effectiveness of the system but has been delayed due to the need for additional training sessions as some report authors did not attend pre-launch training.

Arrangements and processes are in place to safeguard Members and employees against conflicts of interest. An annual reminder to complete declarations of interest is sent to all Members and followed up as needed. A gift/hospitality register is also in place but is currently not being actively used.

Training & Development

All Audit & Governance Committee and Overview & Scrutiny Committees members Corporate Overview and Scrutiny Committee, Communities, Regeneration and Environment Overview and Scrutiny Committee, Health, Schools and Care Overview and Scrutiny Committee) received an induction pack and have had audit and accounts based training in 2014 to support their responsibilities. All members have completed a skills self-assessment from which a training plan



for 2015 has been devised and plans are in progress to schedule further training sessions. A self-assessment against the CIPFA Guidance on Audit Committees is scheduled to be undertaken in 2015/16.

Information Security & Compliance

The Public Services Network (PSN) is the government’s network, which helps public sector organisations work together, reduces duplication and shares information and resources. This network is essential to enable the Council to support its customers to access a range of services including benefits. The network is based on an agreed set of standards incorporated into an annual compliance regime to create trust and assurances across public sector organisations.

The Council are awaiting updated guidance from Cabinet Office relating to the current PSN requirement that any access to the Council (and therefore PSN) network is undertaken using equipment owned, managed and updated by the Council. This is to prevent access by unauthorised individuals to Council information and to stop computer virus’ being introduced into the network. Once guidance has been received, face to face training for identified information Asset Owners will be rolled out.

Transparency Code

The Code relates to the publication of information by local authorities about the discharge of their functions and other related matters. Public data means the objective, factual data on the discharge of local authority functions. The Council currently publish some of the data referred to in the Code and have set up an Open Data Page on the website with more detail on the requirements.

Data is being signposted / published on http://data.gov.uk/publisher/rochdale-borough-council

Where possible, publication of items will support other areas of work. For example, the Code requires publication of an organisation chart covering staff in the top three levels of the organisation. Organisation charts are also in the Top 10 Freedom of Information (FOI) requests received by the Council. Every attempt will be made to dovetail items published to reduce the time spent dealing with areas such as FOI.

Freedom of Information Performance

http://www.rochdale.gov.uk/council_and_democracy/data_protection_and_foi/open_data.aspx

http://data.gov.uk/publisher/rochdale-borough-council



The Information Commissioners Office has set all public authorities a target to respond to 85% of FOI requests within a 20 working day timescale. In 2014/15 there has been a significant improvement compared with 2013/14, with the majority of requests responded to within the required timescale. In total there have been 1314 requests received this financial year with 89% of all responded to within the timescales, therefore exceeding the target set by the commissioner’s office.

Claims management and risk

On a quarterly basis, e-mails are sent to nominated contacts in each service with the insurance claims data including claims received in the quarter and claims closed in the quarter along with details of any trials. For claims closed in the quarter where liability has been admitted there is further information provided detailing the “lessons to be learnt”.

Our aims in relation to Risk Management and internal control are to establish and maintain a systematic strategy, framework and process for managing risk and reducing claims and associated costs. The Risk Management Group supports and is supported by the Risk Management Strategy, which was last updated in 2013/14. The post of Risk Manager is currently vacant and therefore a gap in the Council’s governance structure which has resulted in lack of Risk Register reporting to the Audit & Governance Committee for the 12 months between June 2104 and 2015. However this has now been addressed with recruitment to the post, the post holder is due to start on the 1st of September 2015.

In the interim, the Risk Register and Risk Management E-Learning Course will continue to be developed with support and guidance from the Council’s Insurance providers Zurich as part of the agreed policy. Work has also been done this year to integrate the reporting of risks to Leadership Team with a new the Leadership Team Performance Dashboard.

Leadership Team now recieves a summary each quarter which reports the total number of risks on the Corporate Risk Register, the number of new risks since the previous quarter, the number of corporate red risks (i.e. those with a residual risk score of 16 or above) and the number of service red risks (i.e. those with a residual risk score of 12 or above). The controls in place for red risks are also reported to provide assurance to Leadership Team that high risks are being managed effectively.



Additional work is being done to refresh the list of directorate risk champions and to ensure that risk registers are kept up to date on the Corporate Risk System (Performance Manager) to enable the corporate performance team to provide updates for Leadership Team directly from the system. The risk module on Performance Manager is also being developed further to simplify its use. The revised module should be available by the end of Quarter 3.

Controls Assurance is an important part of the process to assure the Authority that the identified risks are being properly controlled. This is carried out at periodic intervals by:

The Audit & Governance Committee; Directors; and Internal/External Audit.

4.5 DEVELOPING THE CAPACITY AND CAPABILITY OF MEMBERS AND OFFICERS TO BE EFFECTIVE

Why is this important?The achievement of corporate objectives and sound decision making processes is dependent on staff and Members who are well trained and capable to fulfil their roles effectively.

We do this through:

Organisational Development Corporate Induction Programme Training & Development


Organisational Development

The Council’s Organisational Development Strategy aims to ensure we have a workforce that is broadly representative of the community of Rochdale in terms of age, ethnicity, disability, gender, with the right skillsets to drive and support change and development processes, and constantly strive to be more efficient in meeting the needs of our customers.



The Strategy will be reviewed in 2015/16 to ensure it meets the needs of the organisation, as outlined in Principle 1, given the changing financial climate and the implications this has for staffing resources.

Induction

A comprehensive new starter’s process was launched on the 24th of February 2015 which is mandatory for all colleagues joining the Council, including Council employees, contractors and agency workers. The new process ensures a smooth start for people working at Rochdale Borough Council, making sure they have the right equipment, passes and tools from the outset and helping us to better manage our assets (equipment), security and ICT systems.

In 2014/15 we continued to deliver the Member induction and development programme. A programme for 2015/16 has been developed and is being implemented. Workshops and briefings have been delivered following the elections in May 2015 both for new and established Members. The first of these was the Welcome Session on 20th May 2015.

Training

As outlined in Principle 2, the Council’s E-Learning platform Virtual College has been used to great effect in delivering mandatory training across the workforce in areas such as Information Governance, with 81% of staff completing the training. A number of lunchtime awareness sessions have also been delivered throughout 2014/15 including:

Email Management; Finance Lunch & Learn; Information Governance Overview; Freedom of Information; Subject Access Request Overview; Records Management Overview; and Information Security Overview.

These sessions will be continued to be delivered in 2015/16 and, where appropriate, are embedded as part of the induction process.



ICT continue to work through a programme to up-skill ICT staff to improve service management based on identified best practice. The work programme is based around Information Technology Infrastructure Library (ITIL) and is focussed on aligning IT services with the needs of the organisation. This standard will support Members and officers to get the best from the systems they use and ensure that these systems change and develop appropriately with the minimum of disruption for the business but with maximum benefits.

Training continues to be delivered to all Members on the new Code of Conduct. Following the elections in May 2015, all new / re-elected Members will be given training on a mandatory basis and all other Members will be offered refresher training. A full review of the current programme and support for Members continues to be carried out on a regular basis.

4.6 ENGAGING WITH LOCAL PEOPLE AND OTHER STAKEHOLDERS TO ENSURE ROBUST ACCOUNTABILITY

Why is this important?The Council has an approach to consultation and engagement that reflects the Council’s aspirations and commitment to ensure that we understand the needs and issues that matter to our citizens, including those from vulnerable, minority and deprived groups.

We do this through:

Engagement Consultation (External / Internal) Communication Partnerships Regular Scrutiny Transparency


Public Consultation

The Authority is proactive in engaging with citizens and other key stakeholders, and indeedPublic consultations were instrumental in developing the Council’s savings proposals.



Consultation is undertaken in various ways including meeting with Directors, Leadership Team, the Overview and Scrutiny Committee, Township Committees, the Local Strategic Partnership and Trade Unions as well as various types of media including press releases.

Consultation with the public has included summary information on all Council savings proposals for 2014/15 using the Council’s Consultation Hub via the Council’s website. Internally, impact assessment at corporate and individual proposal level is part of this process. Cabinet are provided with details of the outcome from consultation before they formulate their recommendations to Council. A summary of financial information relating to the approved budget is provided to every household that receives a Council Tax bill.

Other platforms for the public and service users exist to convey information about services and changes. These include:

o User consultation and feedback mechanisms, e.g. user forums, telephone, email and postal consultation. These may be used to gather user’s views about services or potential changes; and

o Other web-based and hard copy documents are published on our website or provided in public buildings such as libraries. These are used to make the public aware of our corporate ambitions, our services and their achievements and changes.

Residents Survey

The need for and practicalities of a residents survey are under review. Options are being considered and an on-line Residents Satisfaction form is one option being considered that could help shape a base line measure.

Communication with the Local Business Community

The Council continues to engage with local businesses to facilitate a more open two way discussion about issues and opportunities between the Council and local businesses. This has been done via a range of activities such as: - quarterly business breakfasts with the Leader and Chief Executive, and the High Street Foundation, which enables high street businesses to have direct access to senior officers and Councillors to jointly tackle the current economic challenges



that town centres face and also through Rochdale Town Centre Management Company which liaises with the town centre business, this is also funded by the Council.

Internal Consultation

Internally there are well established and clear routes on how staff and their representatives are consulted and involved in decision making. These include: regular staff briefings, a staff newsletter, team meetings, Personal Development Reviews / 1-2-1’s, a consultative forum and a new developed intranet for sharing key information and managing documents.



5. INTERNAL AUDIT AND THE OPINION ON INTERNAL CONTROL 2014/15

The scope of Internal Audit includes examining and evaluating the whole system of internal control established by management. It involves an evaluation of controls against an assessment of the risks facing the Council to determine their adequacy, reliability and effectiveness and how well the responsibilities assigned to managers are being carried out in practice. The Internal Audit Plan for 2014/15 was reviewed by the Director of Finance as Section 151 Officer and approved by the Audit and Risk Management Committee on 13 March 2014.

The Internal Audit Plan for 2014/15 has been completed in accordance with the Public Sector Internal Audit Standards. This Audit Plan comprised a range of assignments including reviews of all material financial systems, as part of our managed audit arrangements with external audit, and a range of risk and compliance based audits to provide assurance on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and control.

The planned audit coverage for the year was based on an assessment of risks. Planned work has also been supplemented by ad hoc reviews in respect of suspected irregularities and other work commissioned by officers and Members of the Council, together with assurances derived from work conducted by independent review bodies and internal assurance mechanisms. Given the ongoing significant changes and risks being experienced by the Council throughout 2014/15, the Head of Internal Audit has continuously reviewed the risks associated with the Council’s operations and has allocated the necessary resources, via the Audit Plan, to form an opinion on the Council’s governance arrangements.

Of the planned audit work completed during 2014/15, audit assurance opinions issued on the adequacy of the internal controls were recorded as 'adequate' or ‘substantial’ in 96.7% of cases (97.9% in 2013/14). Only two audits were awarded ‘limited’ assurance opinions. The details of this audit work and any follow-up activity has been reported to Members in the Internal Audit quarterly reports. The ‘limited’ assurance opinions are not considered to be significant in the wider context of the overall system of internal control and did not relate to the programme of material system audit reviews.

Whilst no systems of control can provide absolute assurance and given the limitations of audit work carried out, on the basis of the work undertaken in 2014/15 covering financial and operating systems, risk management and governance, the Head of Internal Audit concluded that a



reasonable level of assurance can be given that the Council's overall control framework remains adequate, and generally being complied with.

6. EXTERNAL AUDIT AND INSPECTION REPORTS

The Grant Thornton Annual Audit Letter (23 October 2014) summarises their findings from the 2013/14 external audit. The audit comprises of two elements: the audit of the financial statements and the assessment of the Council’s arrangements for putting in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources (Value for Money).

The external auditor has reported to the Audit and Risk Management Committee on 20th November 2014 about the issues arising from the 2013/14 audit and gave an unqualified opinion on the accounts for the year ended 31st March 2014 and the Council’s Whole of Government Accounts submission. External audit gave a qualified ‘except for’ conclusion in respect of the Council’s Value for Money arrangements as a result of an Ofsted report issued in December 2012 in relation to services for the protection of children which were judged to be inadequate. On the basis that the April 2014 Improvement Notice was still in place at the date of external audits value for money conclusion, this qualified opinion remained. However, external audit did recognise that the Council has taken wide-ranging action to improve its arrangements for the protection of children in Rochdale and that action is continuing.



7. ACTION PLAN TO ENSURE CONTINUOUS IMPROVEMENT IN THE GOVERNANCE FRAMEWORK

Good Governance Principle 1Focusing on the purpose of the Authority and on outcomes for the community and creating and implementing a vision for the local area

Issues Action Required Delivery programme or Lead Service

Implementation by

Ensure that the new versions of Corporate Plan, Directorate Plan and Township plans are available from 2016, and that adequate arrangements are in place to monitor the indicators and targets in the Intervening 12 months.

Chief Executive 6 April 2016

Ensure that partnerships are underpinned by the common vision of their work that is understood and agreed by all partners

Chief Executive/Director of Finance

6 April 2016

Corporate Planning and Performance Management

Ensure new versions of Corporate Plan, Directorate Plan and Township plans are updated to include where appropriate the changes at Greater Manchester (GM) level in terms of devolution.

Director of Corporate Services / Relevant Director

6 April 2016



Communicate the Authority’s activities and achievements, its financial position and performance

Chief Executive

Ensuring that users receive a high quality of service whether directly, or in partnership or by commissioning

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

Relevant Director 29 February 2016

Ensuring that the Authority makes best use of resources and that public and service users receive excellent value for money

Decide how value for money (VFM) 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.

Director of Finance and relevant Director

30 November 2015

29 January 2016 / Ongoing



Good Governance Principle 2Members and Officers working together to achieve a common purpose with clearly defined functions and roles


Implementation by

The Monitoring Officer to amend the Constitution subsequent to decisions taken at Annual Meetings, to reflect matters arising from organisational or other review; and to amend the Scheme of Delegation to Officers on matters arising from legislative and/or approved operational changes, and to report these matters to the Council on a six monthly basis.

Head of Legal and Governance Reform

End of May each Year or Quarterly As appropriate

Constitution

Ensure all staff are aware on how to access the Constitution and guidance produced ensuring staff are up to date and familiar with the Constitution


30 November 2015

Member Training Training to continue to be delivered for new Members and refresh training for existing Members.

Head of HR 31 March 2016

Officer Training Political Skills Training to continue to be delivered to managers and officers. Head of HR 31 March 2016



Good Governance Principle 3Promoting values for the Authority and demonstrating the values of good governance through upholding high standards of conduct and behaviour


Implementation by

Implementation of the Policy Centre Director of Corporate Services

14 September 2015Policy & Guidance

Ongoing review of existing policies and strategies held on both the Council’s website and intranet

Director of Corporate Services

14 September 2015

Employee Register of Interest

Re-stablish the Officer Register of Interest, including the communication of the arrangements and consideration as to the extension to agency staff and consultants.


30 September 2015

Gifts and Hospitality Communicate annually to staff and Members to declare gifts and hospitality and ensure this is recorded by officers and kept in the Monitoring Officer’s office.


30 November 2015

Ethical Governance awareness

To ensure awareness of and the process adopted by the Authority by delivering training courses targeted at specific roles or areas within the Authority. For example Members, Senior Managers, Partnerships, Projects and report writers.


31 March 2016

Safeguarding of Assets

Inventories are maintained of all valuable equipment and assets which are independently checked on a periodic basis in line with the Financial Regulations.

Relevant Director 31 March 2016

Business Continuity / Ensure all Business Continuity Plans / Emergency Plans are reviewed reflecting All Directors 30 November 2015



Emergency Planning any Organisational Structure and officers contacts changes. Provide training to officers involved in the reviewing and activation of BC plans.

There are well defined agreements/ contracts for all partnerships entered into with other organisations, which are clearly understood and agreed by all parties.

Relevant Director 6 April 2016

Responsibilities of the service and other parties within the partnership have been clearly established and documented. This includes assigning responsibility to named officers within the service.

Relevant Director 6 April 2016

Information Governance & Data sharing protocols/contract terms are in place and have been agreed to ensure information governance is maintained in line with legislation.


30 November 2015

Partnerships

The performance of partnerships is regularly reviewed, evaluated and reported on to senior managers and Members as appropriate. Remedial action is taken when performance is not as expected.

Relevant Director Ongoing

Good Governance Principle 4Taking informed and transparent decisions which are subject to effective scrutiny and managing risk


Implementation by

Report planning and preparation and informed decision making

Following the implementation in May 2014 of the Modern.gov system, regular performance and review needs to be undertaken.


31 March 2016



Ensuring that an effective risk management system is in place

Ensure that risk management is embedded into the culture of the Authority; with Members and managers at all levels recognising that risk management is part of their jobs. Risk Management Strategy, Corporate Risk Register to be updated. Training to be provided to all Risk champions.

Director of Finance and all Directors

31 March 2016

Governance Board Ongoing review of the objectives and membership of the Board Head of Legal and Governance Reform

Ongoing

Savings Governance Continue to develop the governance process for savings to manage the budget process in 2015/16 and onwards.

Director of Finance and all Directors

30 September 2015

Information Security & Compliance / Freedom of Information

Maintain PSN compliance for the Authority and Continue to implement all the recommendations of the Internal Audit report.

Head of Corporate Services

31 March 2016

Audit & Governance Committee

Continue to challenge senior officers on any areas where weaknesses are identified within the internal control framework and seek assurances that agreed actions are being completed within agreed timescales.

Head of Internal Audit 31 March 2016

Scrutiny Committees Embed and keep under review / further develop the Council’s new scrutiny arrangements to increase overall effectiveness and efficiency.


31 March 2016



Good Governance Principle 5Developing the capacity and capability of Members and officers to be effective


Implementation by

To develop and implement an Organisational Development Strategy to ensure it meets the needs of the organisation given the changing financial climate and the implications this has for staffing resources.

Head of HR / All Directors 30 September 2015

Monitor induction programme to ensure colleagues joining the Council, including Council employees, contractors and agency workers have been undertaken.

Head of HR Ongoing

Making sure that Members and officer have the skills, knowledge, experience and resources they need to perform their roles well

Ensure that the statutory officers have the skill, resources and support necessary to perform effectively in their roles and that these roles are properly understood throughout the Authority


Assess the skills required by Members and officers and make a commitment to develop those skills to enable roles to be carried out effectively

Head of HR 31 March 2016Developing the capability of people with governance responsibilities and evaluation their performance, as individuals and as a group

Develop skills on a continuing basis to improve performance, including the ability to scrutinise and challenge and to recognise when outside expert advice is needed

Head of HR / All Directors

31 March 2016



Elected Member Induction and Development

Continue to roll out Member induction programme for new Members following elections in May 2015 and refresh for existing Members


Equality & Diversity Services to monitors its workforce and uses the data to improve the equality make-up of its workforce


Good Governance Principle 6Engaging with local people and other stakeholders to ensure robust accountability


Implementation by

Continue to ensure 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

Relevant Director 30 November 2015

Continue to ensure clear policies are in place on the types of issues they will meaningfully consult on or engage with the public and service users about including a feedback mechanism for those consultees to demonstrate what has changed as a result

Relevant Director 30 November 2015

Clear channels of communication with all sections of the community, staff and other stakeholders are in place, ensuring accountability and encouraging open consultation.

On an annual basis, publish a performance plan giving information on the Authority’s vision, strategy, plans as well as information about its outcomes, achievements and satisfaction of service users.

Chief Executive 31 March 2016



Maintain a clear policy on how staff and their representatives are consulted and involved in decision making

Head of HR 30 November 2015



We propose over the coming year to take steps to address the above matters to further enhance our governance arrangements. We are satisfied that these steps will address the need for improvements that were identified in our review of effectiveness and will monitor their improvements as part of our next annual review.

Signed: Pauline KaneDirector of Finance

Signed: Steve Rumbelow Chief Executive

Signed: David WilcockMonitoring Officer

Signed: Councillor Richard FarnellLeader of the Council

AGS - Action List

RAG KEY – Against Actions

Actions are rated according to the following criteria. The overall RAG colour will be the lowest common denominator i.e. if a single action is red, the overall rating will be red, as the recommendation has not been addressed until allactions have been completed.

Complete – Signed off / Approved at Governance Board. This will only apply when all actions are completed, evaluated (where appropriate) and evidence of achievement has been provided.Completed or on track & expected to be completed by target dateOff track but can be delivered within 1 month of targetOff track and currently cannot be delivered within one month of target date: requires escalation

AGS - Actions Version: 7.0 - Audit and Governance Committee

Last date amended: Wednesday 12th August 2015

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# Area of Consideration Action Owner Open / Closed Link to Documents Comments / Progress RAG StatusDeadline

Good Governance Principle 1 - Focusing on the purpose of the Authority and on outcomes for the community and creating and implementing a vision for the local area

1 Communication plan internal andexternal is required

We need to communicate about all ourpartnership activity, their priorities and howthese boards and partnerships contribute

positively towards better outcomes for localpeople.

Mark Roberts / JillBurdett Open 31 March 2015 On-going. Information about partnership activity and examples of positive outcomes is

being collate dand will be communicated G

2 Report activity to Cabinet andother meetings of the Council

Regular reporting of the work andperformance of all Boards and partnerships

into the Cabinet and Council meetings toraise awareness of the business activity and

performance manage the activity

All Open 31 March 2015 http://democracy.rochdale.gov.uk/ieListMeetings.aspx?CId=454&Year=0

The Partnership review identified a very complex structure and we have identified withMembers a need to report more effectively into the Councils decision making structures.We are working on a number of protocols and the Council’s Overview and ScrutinyCommittee has requested a Forward Plan is produced.

We take an active role in the work of AGMA and the Greater Manchester CombinedAuthority, with representation on key Commissions and Boards. Decisions made by thesebodies are reported to Cabinet. We ensure corporate co-ordination and monitoring of ourwork at Greater Manchester level via a high level officer group. The Constitution has beenupdated to reflect this.

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3 Contractual PartnershipGovernance

There will be a review of the currentGovernance of all Contractual partners an

action plan will be produced. There arecurrently gaps in Governance that require

addressing.

Corporate Services Open 31 March 2015http://www.rochdale.gov.uk/pdf/2014-03-31-Governance-framework-for-significant-partnerships-approved.pdf

Our Partnership Framework continues to ensure our contractual partnerships are effectiveand that we maximise the contribution that they make to our Vision and Plans.

Contractual partnerships and Governance will require a focused piece of work with acommunication plan with our staff and customers about their roles and responsibilities andour relationship with them. This will form part of the AGS Action Plan for 2015/16

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4 Budget challenges

Faced with dramatic reductions in availableresources, all publicly funded organisations

have to look at what they spend their moneyon and whether it represented good value formoney. The Council has undertaken and willcontinue to undertake a comprehensive and

thorough review of how, what and whyservices are provided. Different ways ofworking are needed for the Council to beable to target its reducing resources to its

priorities and to seek and achieve maximumvalue for money for the tax payers of

Rochdale.

Pauline Kane Open 31 March 2015

Options have been considered by members for addressing the £51million budget gap overthe next 2 years. Budget Fixing Council on the 24th of February 2015 considered the latestphase of savings and approved the overall budget for 2015/16. Difficult decisions havebeen made by councillors in what has been a challenging process to balance the budgetwhile taking into account reductions in funding and increases in demand for services.Following approval implementation of the savings proposals will now commence.

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5 Vision, Corporate Plan andperformance

We will ensure that the new vision andCorporate Plan are communicated and that

adequate arrangements are in place tomonitor and report the indicators and targets.We will ensure that decision making is in linewith the agreed vision and Corporate plan to

meet the outcomes for local people.

Leadership Team / BashHussain / Mark Roberts /

Jill BurdettOpen 31 March 2015

http://www.rochdale.gov.uk/council_and_democracy/policies,_strategies__reviews/strategies/corporate/corporate_plan.aspx

A briefing report has been develop for discussion with Leadership team on 20 January2015. This report is aiming to seek direction on the approach the Council is taking onCorporate Planning and Performance for 2015/16, this also includes the development ofDirectorate Plans. Leadership are also being asked to review the 'golden thread' approachto corporate planning, partly due to key strategic strategies requiring updates and alsowith the changes at GM level in terms of devolution.

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6 Induction programme

The Induction programme needs to be re-launched and service plans and PDRs should

be in place and monitored across allservices, so that staff understand how they

fit into their Service.

Louise Griffiths Open 01 March 2015A comprehensive new starter’s process was launched on the 24th of February 2015mandatory for all colleagues joining the council, including council employees, contractorsand agency workers.

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7 Corporate ComplaintsArrangements for receiving and investigating

complaints from the public are in place,reported to Committee and well publicised.

Carolyn Phipps Closed 31 March 2015

http://www.rochdale.gov.uk/council_and_democracy/contact_us/complaints_and_compliments.aspx

Complaints reporting mechanisms are in place across all channels, and processesestablished to investigate, respond and resolve to all complaints received. Corporatecomplaints and social care complaints are reported to Overview and Scrutiny Committeeon a regular basis, which the Council’s communications team are able to publicise, asappropriate

C..\..\Peer Review - EvidenceFolder\Complaints Procedures\13964Childrens Social Care Feedback leafletfinal.pdf

..\..\Peer Review - EvidenceFolder\Complaints Procedures\Adult Carecomplaints leaflet.pdf

8 A learning approach to Serviceimprovement

The Council wants to provide the best serviceit can to the community and has a CustomerFeedback process in place, which includescomplaints, compliments, service requests,

Member contact and comments. The Councilneeds to monitor Service improvements

which take place as a direct result ofcustomer feedback received and to

communicate these improvements. All casesof maladministration are reported to the

Council’s Overview and Scrutiny Committeeand or Council.

All Services Open 31 March 2015

The Council has an approach to consultation and engagement that reflects the Council’saspirations and commitment to ensure that we understand the needs and issues thatmatter to our citizens, including those from vulnerable, minority and deprived groups.

Consultation is undertaken in various ways including meeting with Service Directors,Leadership Team, the Overview and Scrutiny Committee, Township Committees, theLocal Strategic Partnership and Trade Unions as well as various types of media includingpress releases. Cabinet are provided with details of the outcome from consultation beforethey formulate their recommendations to Council. A summary of financial informationrelating to the approved budget is provided to every household that receives a Council Taxbill.Consultation with the public has included summary information on all Council savingsproposals. Internally, impact assessment at corporate and individual proposal level is partof this process. This will form part of the AGS Action Plan for 2015/16

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9 Residents Survey

The Communications team will be carryingout some form of residents survey which will

assist in meeting this Good Governanceprinciple.

Mark Roberts / JillBurdett Open 31st March 2015 The need for and practicalities of a residents survey are under review. Options are being

conisdered and This will form part of the AGS Action Plan for 2015/16 R

Good Governance Principle 2 - Members and Officers working together to achieve a common purpose with clearly defined functions and roles

10 Member role descriptions Portfolio holder role descriptions have been

produced but need to be communicated morewidely and put onto the website.

Mark Hardman / MarkRoberts / Rahna Riley /

Jill BurdettOpen 01 September 2015 This has now been added to the Website C

11 Monitoring officer role and s151officer role

The Ethical Governance feedback confirmedthat not many staff understood both roles soan awareness raising session is required andthis will be for all staff and also form part of

the management training programme.

David Wilcock / PaulineKane Closed 12 January 2015

Director of Finance - Staff Bulletin

The role of the Director of Finance was communicated out on the 10th of October 2014 /The role of the Monitoring Officer and SIRO officer was also communicated to staff Chttp://rbcintranet.rochdale.local/news/cor

p/Pages/Governance.aspx

http://corporateservices.rochdale.local/Legal_Services/SitePages/Monitoring_SIRO.aspx

12 Constitution

Complete review of the Constitution.Township decision making including

contribution to the AGMA constitution studygroup.

Mark Hardman Open 01 April 2015

..\..\Peer Review - EvidenceFolder\Constitution Review\Leadership TeamReport 11 Nov 4.docx

Review completed, constiution has been updated and is now available on the Council'sWebsite C

..\..\Peer Review - EvidenceFolder\Constitution Review\ConstitutionReview – Key Dates _v1 10.11.14.doc

13 Member / Officer Protocol

There is a requirement for training on theMember / Officer Protocol and an awarenessraising session is required about the role of

officers and members.

David Wilcock / MarkHardman Open 31 December 2014

Training to be continued to be delivered on new code of conduct to all Members – afterthe election in May, all new / re-elected Members will be given training on a mandatorybasis and all other Members will be offered refresher training.

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http://democracy.rochdale.gov.uk/ieListMeetings.aspx?CId=454&Year=0

http://www.rochdale.gov.uk/pdf/2014-03-31-Governance-framework-for-significant-partnerships-approved.pdf

http://www.rochdale.gov.uk/council_and_democracy/policies,_strategies__reviews/strategies/corporate/corporate_plan.aspx

http://www.rochdale.gov.uk/council_and_democracy/contact_us/complaints_and_compliments.aspx

../../Peer Review - Evidence Folder/Complaints Procedures/13964 Childrens Social Care Feedback leaflet final.pdf

../../Peer Review - Evidence Folder/Complaints Procedures/Adult Care complaints leaflet.pdf

../../Peer Review - Evidence Folder/Communication & Engagement/Staff Bulletin 10 October 2014.msg

http://rbcintranet.rochdale.local/news/corp/Pages/Governance.aspx

http://corporateservices.rochdale.local/Legal_Services/SitePages/Monitoring_SIRO.aspx

../../Peer Review - Evidence Folder/Constitution Review/Leadership Team Report 11 Nov 4.docx

../../Peer Review - Evidence Folder/Constitution Review/Constitution Review � Key Dates _v1 10.11.14.doc



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14 Member training if they are onoutside bodies

Training is being arranged for Members whosit on outside bodies, such as Charities andpartnerships, with training on how to deal

with conflicts of interests.

David Wilcock / MarkHardman Open 31 December 2014


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15 Political skills training

There is a need for political skills training tobe mandatory for all managers and this will

form part of the management trainingprogramme.

Members will form part of the session toexplain their roles and requirements.

Fiona Nuttall Open 31 December 2014

We have done work around skills development and taking a much more strategic approachto training that means it is linked to organisational priorities, performance and publicservice reform. Retention of talent, empowerment of staff and development are key areasof focus. Further workers have received specific training across a range of areasincluding Critical Services. Management training has been delivered to a wide range ofmiddle level managers to support their development in the context of the changinglandscape of public service.

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16 Councillor enquiries and MPenquires

Following the implementation of the systemfor MP and Councillor enquiries, regularperformance of enquires needs to be

managed.

David Wilcock Open 31 March 2015http://corporateservices.rochdale.local/Legal_Services/SitePages/Member_Enquiry_System.aspx

Radical changes are to be made to the Member enquiry system following meetings on12th /13th January with Leader/Members. Reporting function to be added to easily extractservice performance to be sent to HOS on monthly basis. System to be used as a tool forOfficers rather than a tracking tool for Members – Members simply want to log the enquiryand receive an outcome. Members Intranet home page to incorporate overview of eachMember’s enquiries, both outstanding and closed to give clear visibility to each Member; aself serve screen will also be added which will eradicate the issue of the enquiry not beingpassed to the appropriate person to capture within the system. Work in Progress – ETAwill be confirmed end Jan 15.

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17

Training programme deliveredon the member code of conductmember / officer relations and

code of conduct, fraud, gifts andhospitality and declarations of

interest

Training will be delivered as part of themanagement development programme. David Wilcock open 31 December 2014 The majority of elected members have received code of conduct training. Dates are being

arranged for the few remaining to receive training on the Members code of conduct. C

18 Employee Declaration of interestprocess

There is a need to comply with current caselaw and to ensure that we have regularrobust systems in place to record and

monitor employee declarations of interests.

HR/ Corporate Process -Louise Griffits Open 31 March 2015

A review of the Councils Corporate arrangements for employee declaration of interestswas undertaken. The Review will identify what is currently in place and the extent ofusage. The review identified that the system was being used to a very limited extent.

The next stages of the project will involve consideration of the expansion of the applicationof the Corporate Declaration of Interests arrangements, including the communication ofthe arrangements and consideration as to the extension to agency staff and consultants.This will form part of the AGS Action Plan for 2015/16

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Good Governance Principle 3 - Promoting values for the Authority and demonstrating the values of good governance through upholding high standards of conduct and behaviour

19 Members Code of Conduct Training to be continued to be delivered onthe new Code of Conduct to all Members. David Wilcock Open 01 March 2015


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20 TrainingThe training and communication plan aroundGood Governance Principle 2 will support

work in this area

Corporate Services /Communication Team Open 31 March 2015

Members’ training has transferred back to the Organisational Development Team and aseries of training sessions, workshops and briefings has been delivered following theelections in May 2014 both for new and established Members.

For staff We have done work around skills development and taking a much more strategicapproach to training that means it is linked to organisational priorities, performance andpublic service reform.

E-Learning platform called Virtual College has been used to great effect in deliveringmandatory training across the workforce in areas such as Child Sexual Exploitation andInformation Governance. The Council won an award for Best Use of E-Learning as a resultof this work. This will form part of the AGS Action Plan for 2015/16

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21 Policy & Guidance

To continue development and awareness ofInformation Governance, the following

Policies and Guidance documents will bedeveloped and issued during 2014/15:

• Information Governance Policy;• Overarching ICT Policy.

Maria Tickle Open 14 September 2015 Policy Centre is in development and will be launched on the 14th of September. This willform part of the AGS Action Plan for 2015/16 G

22 Staff Declarations of Interest

Council employees must give notice in writingof any financial or non-financial interests

which are clear and substantial and whichcould bring about a conflict with the

Authority's interests. The Council’s corporateprocess was reviewed and updated but this

needs to be communicated through theintranet. Provide a customer focused

approach to recording amendments usingexisting software and the intranet.

Louise Griffiths open 01 March 2015

See update Action 18

Consideration needs to be give on how to communicate the process, including the potentialto utilise the launch of the new Induction process to ensure that staff are aware of therequirements and process

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23 CommunicationTo develop a communication plan to ensureefficient and regular communications to staff

and customers.

Mark Roberts / JillBurdett Open 31 March 2015 This will form part of the AGS Action Plan for 2015/16 G

24 Gifts and Hospitality

As employees in the public service, officersshould question the need for gifts or

hospitality. A Member of the public wouldrightly be suspicious of any employee whoreceived gifts or excessive hospitality in thecourse of their normal working relationship.

A register of all gifts and hospitality isrecorded by officers and kept in the

Monitoring Officer’s office. We need tocommunicate this to staff and Members.

David Wilcock open 01 March 2015

..\..\Peer Review - EvidenceFolder\Communication & Engagement\StaffBulletin Thursday 20 November 2014.msg 2 articles went into the staff bulletin, which goes to all staff and all members, on the

following dates:-

20th November and then, again in December :-C

..\..\Peer Review - EvidenceFolder\Communication & Engagement\StaffBulletin Thursday 27th November.msg

25 Ethical Governance awareness

To ensure awareness of and the processadopted by the Authority by delivering

training courses targeted at specific roles orareas within the Authority. For example

Members, Senior Managers, Partnerships,Projects and report writers.

Corporate Services Open 31 March 2015 This will form part of the 2015/16 AGS Action Plan A

Good Governance Principle 4 - Taking informed and transparent decisions which are subject to effective scrutiny and managing risk

26 Report planning and preparationand informed decision making

Following the implementation in May 2014 ofthe Modern.gov system, regular performance

and review needs to be undertaken.Mark Hardman Open 31 March 2016

commencement of review process delayed due to need for additional training sessions assome report authors did not attend pre-launch training. This will form part of the AGSAction Plan for 2015/16. This will form part of the 2015/16 AGS Action Plan

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27 Governance Board Ongoing review of the objectives andMembership of the Board

David W/ Ian CorbridgeHead of Internal Audit Open 01 March 2015 ..\..\Governance framework\RBC Governance

Framework_v10.docxThe Governance Framework document has been updated including the terms of referenceand membership of the Governance Board. This is currently awaiting approval. C

28 Overview & Scrutiny Committee

Ensure that new Committee Members haveclear training opportunities to assist theirexecution of the role included within the

committees work programme.

Mark Hardman Open 31 March 2015 Planning, O&S, A&RM training provided over year; only O&S and A&RM have ‘formalised’work programmes C

29 Training Develop and roll out face to face training foridentified Information Asset Owners Maria Tickle Open 31 December 2015 Guidance produced C

30 Audit and Risk ManagementCommittee

Ensure the Committee is clear on its role byreceiving training and reviews its

performance. Ian Corbridge Open 31 March 2015

V:\Governance\Audit and Risk ManagementCommittee\2014.11.10 CIPFA Auditcommittee knowledge and skills framework -self assessment status.docx

All members received an induction pack and have had audit and accounts based training in2014 to support their responsibilities. All members have completed a skills self-assessment from awhich a training plan for 2015 has been devised and plans are inprogress to schedule further training sessions. A self-assessment against the CIPFAguidance on Audit Committees is scheduled to be undertaken in 2015.

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31 Information SecurityContinue to implement the Information

Governance Programme and ImplementationPlan for 2014/15.

Maria Tickle Open 31 March 2015 Ongoing, This will form part of the AGS Action Plan for 2015/16 C

http://corporateservices.rochdale.local/Legal_Services/SitePages/Member_Enquiry_System.aspx

../../Peer Review - Evidence Folder/Communication & Engagement/Staff Bulletin Thursday 20 November 2014.msg

../../Peer Review - Evidence Folder/Communication & Engagement/Staff Bulletin Thursday 27th November.msg

../../Governance framework/RBC Governance Framework_v10.docx

//r1p-fps04/council/Governance/Audit and Risk Management Committee/2014.11.10 CIPFA Audit committee knowledge and skills framework - self assessment status.docx



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32 Information Security &Compliance

ICT Starters and Leavers processes are tobe reviewed to ensure timely and appropriate

responses to changes in the organisationsstaffing with all new starters receiving

adequate and timely induction and guidance.

Maria Tickle Closed 31 March 2015 Input provided to work on induction processes. IG requirements specified. C



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33 Information Security &Compliance Maintain PSN compliance for the Authority. Julian Massel Open 20 February 2015 The council has maintaied PSN compliant C

34 Savings GovernanceContinue to develop the governance processfor savings to manage the budget process in

2014/15 and onwards.Finance Services Open 31st August 2015

Governance arrangement are in place for the savings programme. A Savings ProgrammeBoard has been established to support, challenge and facilitate Rochdale Borough CouncilServices in the identification and delivery of stated Council budget savings targets in2016/17, identify additional savings opportunities that RBC can take advantage of andmonitor the 15/16 Savings Proposals identifying gaps and highlighting risks.

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35 Risk Management

To raise awareness of Risk Managementand the process adopted by the Authority by

delivering e-learning courses targeted atspecific roles or areas within the Authority.For example Members, Senior Managers,

Partnerships, Projects.

David W Open 31 March 2015

The post of Risk Manager is currently vacant and therefore a gap in the Council’sgovernance structure which has resulted in lack of Risk Register reporting to the Audit &Governance Committee for the 12 months between June 2104 and 2015. However thishas now been addressed with recruitment to the post, the post holder is due to start onthe 1st of September 2015. This will form part of the 2015/16 AGS Action Plan

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36 Claims management and risk

To link claims received against the Councilwith risk and management of information,

mitigation of risk and the implementation oflearning across the organisation. Regular

reporting on claims and settlements toCommittee.

David Wilcock / KirstySmith Open 31 March 2015 ..\..\Peer Review - Evidence

Folder\Insurance\Master List.xlsx

On a quarterly basis, e-mails are sent nominated contacts in each service with theinsurance claims data including claims received in the quarter and claims closed in thequarter along with details of any trials.

For claims closed in the quarter where liability has been admitted there is furtherinformation provided detailing the “lessons to be learnt”.

A full comprehensive list of the data for ALL services used to then go to the Chief LegalOfficer previously Linda Fisher – These were presented to the Audit & Risk ManagementCommittee.

This links to Risk Management which is currently vacant

C

37 Partnership working

All partnerships require a Governance reviewthese will be completed and the Client leadswill this year ensure such reviews are carried

out and reported to Overview and ScrutinyCommittee.

Client lead officer/ MarkWiddup/ Pauline Kane/Julian Massel/ Wendy

Meston/ Mark HardmanOpen 31 March 2015 This will form part of the 2015/16 AGS Action Plan A

Good Governance Principle 5 - Developing the capacity and capability of Members and officers to be effective

38 Elected Member Induction andDevelopment

A Member Bulletin / Member E-learning to beintroduced.

Mark Roberts / FionaNuttall / Jill Burdett Open 31 March 2015 The induction pack for new members needs to be simplified and key messages pulled out.

Members responsibilities and restrictions need to be identified. ( to be assigned) C

39 Members & Officers

Greater communication is required.Additional training to both Members andofficers on governance and constitutionalareas together with fraud awareness as

outlined above.

Mark Roberts / MarkHardman / Jill Burdett Open 31 March 2015

Additional Training for members and officers. A request has been made to the LGA to seeif they already have any tools that could be used or adapted. Consider also an area on theintranet which could provide key resources.

C

40 Public Health

Incorporating Public Health staff into theorganisation. RBC Information GovernancePolicies and Guidance will be rolled out to

these staff.

Corporate Services Closed 31 March 2015

http://www.rochdale.gov.uk/pdf/2014-07-18-Responsibility-for-functions.pdf

The Constiution has been amended to include Reference to public health and wellbeingbeing board

Chttp://www.rochdale.gov.uk/the_council/councillors_and_committees/constitution_of_the_council.aspx

http://rbcintranet.rochdale.local/ceo/SitePages/Home.aspx

Public Health Services have been incprporated in to the organisation - Link to theorganisational structure of the council

41 Training Continue roll out of ITIL training across ICT Julian Massel / ChrisKelly Open 31 March 2015 Ongoing - data will be updated at year end C

42 Training Continue to roll out Prince 2 (ProjectManagement) Training across ICT

Julian Massel / ChrisKelly Open 31 March 2015 Ongoing - data will be updated at year end C

43 Organisational DevelopmentStrategy

Agree Organisational Development Strategy& Action plan to ensure it meets the needs ofthe organisation, given the changing financial

climate and the implications this has forstaffing resources.

Susan Blundell/ FionaNuttall Open 31 January 2015 The Organisational Development Strategy has been reviewed and agreed. This will form

part of the 2015/16 AGS Action Plan C

44 Organisational DevelopmentStrategy

Implement our Organisational DevelopmentStrategy & Action plan

Susan Blundell/ FionaNuttall Open 31 March 2015 This will form part of the 2015/16 AGS Action Plan C

Good Governance Principle 6 - Engaging with local people and other stakeholders to ensure robust accountability

45

Clear channels ofcommunication with all sections

of the community and otherstakeholders are in place,ensuring accountability and

encouraging open consultation.

The Council has increased the level ofcommunity input into its decision makingprocesses by increasing the number and

variety of opportunities made available to thecommunity.

However we can do more including:• Before undertaking any consultation orcommunication, action plans should be

completed by the Corporate CommunicationsOfficers to detail exactly how key groups will

be targeted;• The delivery of an extensive programme of

consultations throughout the year; and• Regularly communicating with residents

online via the Council website through socialmedia such as Twitter and Facebook,through local press, via secondary and

primary schools, through local forums andorganisations and through a Citizens Panel

and listening event.

Leadership Team Open 31 March 2015

The Council has an approach to consultation and engagement that reflects the Council’saspirations and commitment to ensure that we understand the needs and issues thatmatter to our citizens, including those from vulnerable, minority and deprived groups.

The Listening event has been scheduled for 16th of June. The purpose of this event is toengage with all our communities and members of all the protected groups to identify anyaction which could be taken to make services appropriate and sensitive to the needs of allour communities. This event will enable them to influence the setting of service equalitypriorities which will shape service business plans.

Consultation with the public has included summary information on all Council savingsproposals. Internally, impact assessment at corporate and individual proposal level is partof this process.

This will form part of the 2015/16 AGS Action Plan

C

../../Peer Review - Evidence Folder/Insurance/Master List.xlsx

http://www.rochdale.gov.uk/pdf/2014-07-18-Responsibility-for-functions.pdf

http://www.rochdale.gov.uk/the_council/councillors_and_committees/constitution_of_the_council.aspx

http://rbcintranet.rochdale.local/ceo/SitePages/Home.aspx

Subject: RBC Governance Framework Status: Publication


Cabinet Member: Cabinet Member for Corporate Services and Regulation


Report of: Head of Legal & Governance

Author Email: [email protected], [email protected]

Author: Usman Arif, David Wilcock

Tel: Tel: 01706925232,

1 Purpose of Report

1.1 To present for information the updated RBC Governance Framework attached at Appendix 1.

2 Recommendations

2.1 To review the updated RBC Governance Framework, which supports the further enhancement to and clarification of the internal governance processes.

3 Background

3.1Governance is about our organisational frameworks, responsibilities, systems, processes, cultures and values. Good governance happens when these things come together to make us an effective organisation – doing the right things in the right way for the right people. Good governance is also about ensuring what we do is done in a timely, inclusive, honest and accountable manner.

3.2 The Council is required to conduct an annual review of the application and adherence to the Code of Corporate Governance and formally produce an Annual Governance Statement (AGS) which sits alongside the Annual Statement of Accounts. The preparation of the AGS is necessary to meet the requirement set out in Regulation 4 of The Accounts and Audit (England) Regulations 2011. As a result of this annual review, the AGS will also include an action plan to ensure that we continually improve.

3.3To support the Code of Corporate Governance, the Council has a governance framework which brings together legislative requirements, governance principles and management processes. This ensures that, whatever executive arrangements are in place, the way the Council operates is based on sound decision making with an effective process to

support it. Given the increasing importance of partnership working, the Council has also developed a Governance Framework for Significant Partnerships to ensure that best practice is adopted within any such operational arrangements.

3.4Both the Code of Corporate Governance and the Governance Framework for Significant Partnerships adopt the core principles of good governance from the CIFPA/ SOLACE guidance – Good Governance in Local Government. These core principles guide our internal frameworks for governance and form the basis of how we undertake the governance review. They also set out what we will do and how we will work to ensure good governance.

3.5 The Council has established a process whereby progress against governance challenges is reviewed on an ongoing basis through the Governance Board, an officer led body with representation from all Council Services who have an overall responsibility for ensuring the objectives within the Code of Corporate Governance and AGS action plan are achieved.

Elected Members

3.6The Council’s Audit and Governance Committee has overall responsibility for scrutinising and challenging the Council’s arrangements for governance. A range of elected Member committees contribute to specific elements of the governance framework relevant to their area of expertise. The responsibilities of elected Members for corporate governance, through the Council’s committee structures.


3.7 No other alternatives were considered.


4.1There are no direct Financial Implications arising from this report.


5.1The Governance framework helps the Council to meet its legal obligations to have in place sound financial and governance arrangements

5.2Council has a Governance Board which oversees the Governance arrangements within the Council and communicates with key managers. The Governance Board has been making significant progress in implementing and overseeing the actions highlighted within the Annual Governance Statement and also the Corporate Governance, Policy and Performance Framework


6.1 There are no personnel implications as a result of this report.


7.1 This report supports the Council’s overall corporate objectives of ensuring that governance arrangements remain strong across the Council, particularly throughout this period of significant change.

8. Risk Assessment Implications

8.1 The lack of up to date Governance policies which do not align with the ever changing structure and operations of the Council increases the risk of ineffective decision making and internal controls which may ultimately lead to key objectives of the Authority not being achieved.

9. Equalities Impacts


There are no significant workforce equality issues arising from this report.


There are no significant equality/community issues arising from this report.

Background PapersDocument Place of InspectionCode of Corporate Governance

Governance Framework for Significant Partnerships

Code of Corporate Governance and Annual Governance Statement

Accounts and Audit Regulations 2011

Delivering Good Governance in Local Government CIPFA/SOLACE

Public Sector Internal Audit Standards






RBC Governance Framework

Introduction

Governance is about our organisational frameworks, responsibilities, systems, processes, culture and values. Good governance happens when these things come together to make us an effective organisation – doing the right things in the right way for the right people. Good governance is also about ensuring what we do is done in a timely, inclusive, honest and accountable manner. Our framework is summarised in the below diagram.

Head of Customers & Corporate Services

Director Finance

Director Economy & Environment

Corporate Governance Themes

Performance Management

Information Governance

Corporate Planning

Organisation Development

Financial Management

Risk Management

Internal Control

Value for Money

Public Service Reform

Standards & Ethics

Constitution Decision Making

Human Resource

ManagementHealth & Safety

Managing Partnerships

Commissioning & Procurement

Contract Management

Asset Management

Insurance Business

Continuity Planning

Equalities Communication

Governance Champions

Key Officers

Elected Members (see diagram 2)

Governance Corporate Standards

Internal Audit Governance Board External Audit

RBC Leadership Team / Wider Leadership Team

Elected Members

The Council’s Audit and Governance Committee has overall responsibility for scrutinising and challenging the Council’s arrangements for governance. A range of elected member committees contribute to specific elements of the governance framework relevant to their area of expertise. The responsibilities of elected members for corporate governance, through the Council’s committee structures, are set out in diagram two below.

Elected Member Governance Structure

Audit & Governance Committee

Communities, Regeneration and

Environment Overview and Scrutiny Committee

CabinetCorporate Overview &

Scrutiny Committee

Health, Schools and Care Overview and Scrutiny Committee

Code of conduct for elected

members and Officers

Standards of ethics

Whistle blowing reports

Approves Annual Statement of

Accounts

Internal Audit – Annual Plan and

approval of reports

Scrutinise and challenge overall arrangements for

corporate governance

Approves results of internal audit

reports

Approves Annual Governance

Statement

Approval of Risk Management

Strategy

External Audit – Annual Plan,

reports and Audit Letter

Scrutinise and challenge corporate policies

Directorate Plans

MTFS and Budget Framework

Scrutiny Studies

Outcome of external inspections

Partnership Governance

Partnership Performance

Scrutinise local NHS

performance

Receive and comment on proposals for

local NHS service re-configuration

Scrutinise partnership plans and programmes related to Health and Well Being

Overall responsibility for

RBC Governance

arrangements

Diagram 2

Development of Policy

Framework (corporate policies)”

Develop annual budget

proposals

Implementation of Council

budget and policies

Scrutinise Council operational performance

The Governance Board Terms of Reference

At the centre of the framework is the Governance Board, an officer led body with overall responsibility for ensuring the objectives within the Code of Corporate Governance are achieved.

Name Rochdale BC Governance Board

Purpose Purpose of the Governance Board is to ensure that the Council continues to establish and maintains the public's confidence in both the elected members (councillors) and officers (employees), and that it determines credibility and confidence in the services that we provide. Good governance incorporates all our activities, our priorities and strategic planning, the Governance Board also has overall responsibility for ensuring the objectives within the Code of Corporate Governance are achieved.

Membership

Chair Monitoring Officer / Head of Legal & Governance

Members Director of Finance - Section 151 Officer Director of Public Health / SIROHead of HR / Senior HR Consultant Head of Internal AuditIG Planning & Risk ManagerInformation Protection & Quality Assurance ManagerRisk ManagerGovernance & Committees ManagerOrganisational Development ManagerHead of Community Services Communications ManagerCorporate Project OfficerSenior Officer – Adult Care ServicesSenior Officer – Economy & Environment Service Business Support Principal Manager, Children's ServicesSenior Insurance Officer – Invited on requestPrincipal Community Safety Officer – Invited on requestPolicy Officer – Invited on requestCorporate Health & Safety Advisor – Invited on request

Deputies Each member should identify a named deputy

Accountability See diagram 2. The board also reports to the Rochdale BC Wider Leadership team

Meetings & Reporting The group will meet every six weeks. Minutes of each meeting will be circulated within 1 week of the meeting with periodic update reports issued to the Audit and Governance Committee.

Approval & Review These terms of reference will be reviewed annually.

Governance Board Responsibilities

1. Ensure that the RBC Code of Corporate Governance is subject to annual development and review.

2. Oversee the development and implementation of corporate standards in respect of the governance ‘themes’.

3. Ensure that corporate standards are subject to challenge and take account of external assessments, judgement and inspection requirements

4. To receive reports into incidents and breaches of confidentiality and security and where appropriate undertake or recommend remedial action, ensuring that lessons learned are communicated within the organisation and where relevant to partners and the supply chain.

5. Ensure that the implementation of recommendations of internal and external audit inspection judgements is kept under review.

6. To ensure that the Council undertakes or commissions annual assessments and audits of its Information Governance policies and arrangements to ensure compliance with guidelines and legeslation.

7. Ensure adherence to the Code and performance manage improvement plans within services where standards fall short of the requirements of the Code.

8. To ensure that the annual Internal Audit plans provides sufficient assurance in respect of areas of governance risk.

9. To report to the Leadership Team on Information Governance issues and to carry out such other tasks as may be required of it by the Council.

10. Ensure that the development of action plans and the monitoring and audit of their implementation where compliance with the Information Governance Framework is less than 100%, takes place.

11. To ensure all relevant risks are recorded on the Authority’s Risk Register and are shared as appropriate with partners and the supply chain.

12. To identify where new Policies and/or Procedures are required in relation to governance and assign responsibility for overseeing development and implementation of each Policy and/ or Procedure.

Key Officers – Roles and Responsibilities

The governance framework allocates to key officers roles and responsibilities in respect of the corporate governance themes. In doing this, the framework seeks to ensure that there are clear lines of accountability and that the Authority has appropriate senior level expertise. The Council’s key governance officers are responsible for:

1. Contributing to the corporate arrangements – frameworks, responsibilities, systems, processes, culture and values – that provide for good governance.

2. Providing effective communication and support structures to assist services in understanding and embedding the corporate standards in the day to day operations and delivery of Council services.

3. Leading in the development of corporate governance standards across areas of professional expertise – the governance themes.

4. Ensuring that corporate governance standards respond to the outcomes of inspection.

Internal Audit – Audit Plan

The role of the Council’s Internal Audit function is to ensure that a level of assurance can be provided in respect of the overall arrangements for corporate governance and across each of the governance themes. This is achieved through a risk assessed annual Internal Audit plan. The plan aims to robustly challenge:

The overall arrangements for corporate governance; The effectiveness of the corporate standards for each governance theme in providing

for good governance in line with the Code of Corporate Governance; The effectiveness of communication and support arrangements put in place by the key

officers to ensure each governance theme is embedded within services; The effectiveness of the arrangements of Directors to fulfil their governance

responsibilities; and The compliance within a number of services with respect to the corporate standards

for each key theme.

Audit judgements and reports are presented to the Governance Board and the Audit and Governance Committee. The Board has responsibility for ensuring that Internal Audit action plans are implemented and will monitor/escalate issues to the Leadership Team as appropriate.

External Audit Assessment and Inspection

External auditors will provide an audit report, including the auditor’s opinion on the Annual Statement of Accounts and a conclusion about whether the audited body has put in place proper arrangements for securing economy, efficiency and effectiveness in its use of resources. External audit will also provide and an annual audit letter – which should communicate to the audited body and external stakeholders, including members of the public, the key issues arising from auditors’ work that they consider should be brought to the attention of the audited body. It should highlight the key issues drawn from the report to those charged with governance and auditors’ conclusions on relevant aspects of the audit.

The Governance Board will consider the annual audit letter and report, and the extent to which any elements of the governance framework may need to change in response to the external auditor’s judgement. The Board will also manage the production of any action plan required in response to the judgement and monitor the implementation of activities.

Governance Themes

The governance themes are set out in diagram 1. They are areas of organisational activity that are particularly important to achieving good governance. They are also areas where all services should be adhering to a set of established corporate standards or requirements. They key officer with responsibility for each theme is responsible for the development of corporate standards for that theme, consultation with services and gaining the approval of the Governance Board.

The standards support services as a self-assessment tool, providing a basis against which their performance in relation to each area of governance can be reviewed. They also support the responsibilities of Leadership members by providing a guideline on what they should expect services to have in place to fulfil their governance responsibilities.

Subject: Internal Audit - Quarter 1 Report 2015/16

Status: Publication


Cabinet Member: Cabinet Member for Finance


Report of: Director of Finance Services

Author Email: [email protected]

Author: Ian Corbridge

Tel: Tel: 01706925452

1 Purpose of Report

1.1 This report summarises the work of the Internal Audit team during the first quarter of 2015/16.

2 Recommendations

2.1 Report for information.

3 Background

3.1 This report is to enable the Audit and Governance Committee, in accordance with their work programme and overall responsibility for governance, to scrutinise Internal Audit coverage during the first quarter of 2015/16 on all Services within RBC. The work of RBC Internal Audit is governed by the UK Public Sector Internal Audit Standards.


3.2 Not applicable.


4.1 There are no financial implications arising from this report.


5.1 There are no legal implications arising from this report.


6.1 There are no personnel implications arising from this report.


7.1 This report supports the Council’s overall corporate objectives of ensuring that governance arrangements remain strong across the Council, particularly throughout this period of significant change.

8. Risk Assessment Implications

8.1 The only implications on risk are those issues which have been highlighted by Internal Audit during the quarter. In this regard, these risks will be mitigated by completion of the actions agreed with management and summarised within this report.

9. Equalities Impacts


There are no workforce equality issues arising from this report.


There are no equality/community issues arising from this report.

10. Risk Based Audit Approach

10.1 Internal Audit is responsible for providing an annual opinion on the internal control environment, risk management and governance processes for the Council as a whole. A risk based approach is taken within individual audit reviews, embracing operational and management controls and the wider business risks. This allows an opinion to be expressed on risk identification and exposure and the adequacy of systems in place to manage those risks. For a more detailed background on this approach, reference may be made to the Internal Audit Charter.

10.2 In each Internal Audit report Internal Audit provides a clear audit assurance opinion on how effectively risks are being managed in the area under review. These opinions are as follows:

Assurance Opinion

Explanation

Limited A number of key risks are not managed effectively. The control systems in operation are in need of significant improvement.

Adequate The control systems in operation are generally sound. However, opportunities exist to improve the management of some risks.

Substantial There is a sound system of control in operation to manage risks effectively.

10.3 In terms of the Internal Audit follow up process to provide Members with the assurance that agreed recommendations have been implemented on a timely basis, any ‘red’ reports on which we can provide only limited assurance will be highlighted within section 12 of this report. These will be subject to specific discussion and challenge by Members with senior officers from the relevant Service. Thereafter, Internal Audit will perform a formal follow up audit within a six month period or sooner if the due date for completing the agreed actions is earlier and report back to the Audit and Governance Committee with our findings.

10.4 In terms of any ‘adequate’ or ‘substantial’ assurance opinions, all high and medium priority actions will be followed up by Internal Audit to confirm completion once the due dates have passed. Any delays in implementation will be reported to the Committee for further consideration. If some of the recommendations have not yet been actioned, Internal Audit will request reasons for the delay and confirmation of a revised date by which the action should be completed. The current status of the implementation of audit recommendations as confirmed by formal follow up audits is highlighted within Appendix B and any key issues will be highlighted to the Members.

10.5 Draft reports are issued to management with the requirement that formal responses to recommendations raised are received within one month of the issue date. Internal Audit actively follows up with management via an escalation process to ensure that the reports and actions are agreed in a timely manner. At present, there are no draft reports where responses are still outstanding beyond the agreed period.

11 Planned Work Completed During Quarter One11.1 Appendix A contains the details of planned audit reviews completed during quarter

one which had an ‘adequate’ or ‘substantial’ assurance opinion. Key areas for improvement are summarised for each audit with a specific focus on any agreed actions designated as high priority.

12 Audit Reviews with ‘Limited’ assurance opinions and Follow Up Audits12.1 Time Management

(Economy and Environment – Mark Widdup)

Environmental Management (EM) operates a range of essential services including waste collection, street cleaning, grounds maintenance and school escorts for disabled children. About 250 staff are employed in these functions. Whilst all contracted (non-agency) staff are now paid monthly, there continues to be a need for a time recording system due to the wide variety of operations in place. The review of time recording practices was requested by management, including supervisor oversight and document processing and retention. It was evident that a number of different practices had emerged across EM for a number of reasons, due to a failed attempt to introduce electronic time recording, the transfer to monthly payroll and also a number of restructures that have taken place across various services.

The ‘Limited Assurance’ opinion was given because the review indicated that processes and systems were in need of significant improvement. 10 high priority and 4 medium priority actions were agreed. However this opinion in no way reflects upon the quality of work done by EM staff, merely the inadequate processes to document and account for the time they do work. The key issues which needed to be addressed were as follows:

Some EM staff no longer complete timesheets or records of any kind; Existing timesheets are not always completed, dated or signed by the operator

or supervisor/ manager; Timesheets are not always completed consistently; A variety of different methods of time recording are in place with significant

opportunity for standardisation and alignment; Some drivers had not had their contracts reviewed since transferring from Adult

Care; Certain information required on timesheets for health and safety purposes was

not completed on a consistent basis; and There was a need for clearer guidance on document retention periods for the

various method of time recording.

Since the audit was completed, Internal Audit has continued to liaise with management to ensure timely completion of all the agreed actions. Management has now confirmed that by the end of August 2015, 6 high priority and the 4 medium priority recommendations will have been actioned. The remaining 4 high priority actions are also in progress and subject to ongoing discussions in terms of reviews of terms and conditions and the possibility of identifying a time recording system suitable for multiple

locations and remote logging. Internal Audit will continue to monitor developments closely and confirm completion of the actions in a timely manner.

12.2 Follow up on IT Desktop Asset Management (Customer and Corporate Services – Julian Massel)

The focus of this audit, requested by the Head of Customers and ICT, was to evaluate the stock control arrangements in place to support the desktop equipment used within the Authority. It was recognised that the supporting ‘My Site’ database was still evolving since its introduction and so it was envisaged that this audit would contribute to its further development. The scope of the review included the processing of stock purchase transactions, the movement and secure storage of stock, the maintenance of adequate audit trails and the control of equipment in the context of movements of Council staff. At the time of the audit, Internal Audit was only able to provide limited assurance that risks were being managed effectively as the audit work indicated that significant improvements were still required to the systems of control around this equipment. This outcome was reported to Audit and Governance Committee in June 2015.

A follow up audit completed in August 2015 confirmed that the majority of the agreed actions had now been completed which will ensure a more effective management of associated risks. Three medium priority actions remained outstanding primarily to ensure that:

Policies and procedures relating to various aspects of asset management including security, disposal and missing/ stolen items are brought up to date and;

Processes for managing stock levels and re-ordering items are established.

Management has confirmed that all the above actions are in progress and due to be completed by November 2015. Internal Audit will continue to follow up on the remaining actions in 2015 to ensure that they are completed within an appropriate timescale.

13 Unplanned work

13.1 No significant unplanned Internal Audit work was completed during the quarter.

14 Internal Audit Performance Measures

14.1 The table below shows actual performance as at 30 June 2015 against Internal Audit targets for the first quarter, including the actuals for 2014/15.

Performance Indicator Actual Q1

2014/15

Actual Year

2014/15

Target Q1

2015/16

Actual Q1

2015/16Economy1. Cost per Audit Day – excluding overheads £226 £224 £239 £224

Efficiency2. Chargeable days per auditor (days) 199 198 183 198

3. Percentage of audit plan completed (95% for full year)

20% 96% 22% 26%

4. Percentage of draft audit reports issued within 14 days of completion of the audit

100% 100% 98% 100%

Effectiveness5. Percentage of recommendations accepted 100% 100% 98% 100%

6. Results of client surveys - % of marks in the top two categories (i.e. very good & good)

100% 100% 97% 100%

14.2 All performance indicators are ahead of target for the first quarter. 14.3 The cost per audit day shows a positive variance due to ongoing high levels of time being

directed towards Internal Audit work and efforts to reduce administrative time. The overall average cost is expected to increase due to the impact of increases in salary related costs.

14.4 Similarly, chargeable days per auditor shows a positive variance against target due to efforts to minimise administrative time. This indicator does show seasonal variations particularly due to the impact of holidays and, over the course of the year, is likely to be lower than last year’s outturn due to the impact of unpaid leave.

Background PapersDocument Place of Inspection

None

Appendix APlanned audits completed in quarter one

Service Audit Area Scope of Audit and Key Areas for ImprovementAssurance

OpinionRecommendation

priorities(H, M, L)

Adult Services Property Debts Panel

During quarter one, Internal Audit has provided input and support into the Adult Care Property Debts Panel. The focus of this Panel is on the monitoring and ultimate recovery of all debts associated with deferred payment agreements in which the up-front financial support by RBC for client care is ultimately recovered from the client themselves in accordance with formal financial assessments. The Panel is able to evaluate opportunities for further recovery methods or otherwise refer the debts for write off where this is deemed the only remaining course of action. Internal Audit has provided some challenge to the existing processes and also ensured that all relevant and available information is provided to facilitate an effective decision making process. This input also ensures that any learning points arising from the challenges made are identified and disseminated to all relevant officers to improve processes in the future.

The Panel and the supporting processes are focused on historical debt in terms of clients who are either living or deceased and who were subject to processes established prior to the Care Act 2014. Deferred payment options must now be in compliance with the legislation which places more stringent requirements on decision making processes, especially in relation to securing debts. This should help towards mitigating the associated risks.

N/A N/A



priorities(H, M, L)

Adult Services Appointeeship and Deputyship

Adult Care administers the financial affairs of clients who lack the mental capacity to do so themselves and where no other willing or suitable alternative applicant exists. They do so by either undertaking the role of an appointee or by a Court of Protection appointed deputyship. An appointee is responsible for managing a person's benefits, and also for paying bills and managing a small and limited amount of savings; whilst a deputy undertakes responsibility for the management of all of a person's financial affairs if they become incapable of doing so themselves, including savings, pensions, all sources of income, and assets such as property and valuables. At the time of the audit the Client Financial Affairs (CFA) officer was responsible for 188 appointeeships and 6 deputyships. This audit was to provide management with assurance that the key controls for this client service were operating effectively, and systems used are appropriate.

In general terms, control systems were good and in compliance with relevant Council policies. However one high priority action was agreed to improve the recording and reconciliation of monies held in the safe at one of the Council’s establishments. Opportunities were also identified to improve certain processes and controls including:

The documentation of administration procedures both to provide clearer guidance to staff and also to eliminate some inconsistencies in processes between different establishments;

Ensuring appropriate audit trails are established where additional monies are requested by clients;

Improving the timeliness of dealing with assets and payments associated with deceased clients;

Enhancing the links and communication between social workers/ care officers and the CFA officer to ensure the latter is fully informed of the clients current situation; and

Ensuring regular reviews of clients affairs are carried out to ensure that they remain eligible for appointeeship.

Adequate H – 1M – 9



priorities(H, M, L)

Adult Services Grant certifications

Certain grants available to RBC require periodic certification to confirm that the grants have been spent in accordance with grant terms and conditions. These certifications generally require sign off by the Chief Internal Auditor together with either the Chief Executive or Chief Finance Officer. During quarter one, two grant certifications were signed off in this way. These were the following: Autism (Community Capacity) Grant; and Disabled Facilities Capital Grant 2014/15.

Internal Audit performed various independent checks to ensure that grant certifications could be signed off and no issues arose from this work.

Substantial None

Children’s Services

Residential Homes

The Council operates four residential homes for ‘looked after’ young people within the Borough, offering varying types of care from short term to long term care and also respite care. The audit focused on evaluating the systems and processes over the financial administration arrangements at the homes.The audit confirmed that good procedures were in place to manage, approve and record financial transactions. Staff were also aware of measures to reduce costs and the importance of obtaining value for money. Two medium priority actions were agreed to ensure that VAT is reclaimed on all petty cash and purchase card expenditure, and to enhance the level of planning and interaction between social workers and staff at the homes to reduce costs associated with the use of taxis.

Substantial M – 2 L – 3



priorities(H, M, L)

Corporate Compliance with ICT Acceptable Usage Policy

The Acceptable Usage Policy (AUP) outlines how officers may use both Council and their own ICT equipment responsibly in order to protect both themselves and the Council. Compliance with the AUP should reduce the risk of allegations of inappropriate or unprofessional behaviour and bringing the Council into disrepute, as well as supporting compliance with the Public Service Network. The audit focused on evaluating processes and controls in place to support compliance with the AUP together with efforts directed towards promoting and raising awareness of the AUP.

In general terms Internal Audit confirmed that processes and controls were good to support the knowledge and application of the AUP. Effective controls were in place over the network and e-mails and monitoring processes were also in place where required. One high priority action was agreed to ensure that network log on data was retained for at least 6 months and this has now been completed. Further actions were agreed to ensure that:

The processes for confirming and evidencing that all officers have signed up to the AUP are more robust and complete;

Further efforts are directed towards ensuring all officers and agency staff complete the AUP training at induction stage; and

A central register is maintained to identify all network access afforded to third party organisations.

Adequate H – 1 M – 4



priorities(H, M, L)

Corporate Elections Electoral Services operates the Electoral Registration process and administers elections on behalf of the Council. These include: General and By-Elections for the two parliamentary constituencies of Rochdale and of Heywood and Middleton; Euro-elections for the Borough within the North West region; and local elections for the Council itself. Financing of General and Euro-elections (including By-elections) is provided by the Cabinet Office’s Elections Claims Unit. Constitutionally this funding is held separately from the Council’s accounts. It is held instead by the Election Services Unit in the Returning Officer bank accounts on behalf of the Council’s Chief Executive. This is because the Council’s Chief Executive has a dual role as Returning Officer for Parliamentary Constituencies within the Borough. However, in fact the Council pays nearly all costs via the payroll (temporary staff) or creditor (services and supplies) systems, and then has to be reimbursed from the Returning Officer bank accounts; these latter accounts are only used to directly pay venue (polling station) hire costs.

Whilst processes and controls associated with electoral registration and conduct of elections were considered reasonable, a number of weaknesses were identified in relation to financial management. The main issues that needed to be addressed through the actions agreed were as follows:

The need for bank reconciliations to be carried out regularly on the Returning Officer bank account;

The need for the Council to be reimbursed significant costs paid out for the 2014 Euro and by-election;

Electoral Services return and financial claim to the Cabinet Office for the October 2014 by-election still to be completed;

More robust management over the Returning Officer bank accounts to be established;

The retention of documentation from previous elections to be more formally managed to ensure compliance with legislation; and

Control of unused cheque books needed to be enhanced.

Adequate H – 5,M – 6,L – 3



priorities(H, M, L)

Internal Audit is continuing to liaise with senior management to ensure that all agreed actions are completed in a timely manner. As part of this, management has confirmed that a significant proportion of the costs incurred by the Council on the 2014 Euro and by-elections has now been reimbursed to the Council.

Economy and Environment

Highways Investment Programme

(HIP)

£10 million was allocated to the HIP for the period 2013-15 for both carriageways and footpaths. The budget was aligned with Townships who subsequently approved the schemes to be delivered. The audit sought to provide assurance that effective governance and controls over procurement have been established within the programme of spend.

Internal Audit concluded that there was a sound system of control in operation to manage risks within the programme effectively. Management liaised with Corporate Procurement (now STaR) to ensure compliance with contract procedure rules (CPRs) throughout the programme. The high priority recommendations are associated with areas not adequately covered within the CPRs but which are now being addressed through new consolidated CPRs developed by STaR, e.g. lack of financial evaluation/ vetting of tenders and abnormally low tenders. The issues identified also related to a small contract in the context of the total spend. Management continue to have full visibility and awareness of CPRs and other procurement guidance to ensure that it is rigorously complied with.

Substantial H – 3M – 3,L – 4



priorities(H, M, L)

Economy and Environment

Revealing the River Project

This audit focused on the project to re-open the river through the town centre. The project is a collaboration between RBC, the Environment Agency and the Heritage Lottery Fund. This audit evaluated:

The decision making processes, ensuring they are open and transparent;

The effectiveness of scrutiny and reporting arrangements; The adequacy of risk management arrangements; and The effectiveness of partnership arrangements.

Internal Audit concluded that there was substantial assurance that all the above objectives were met and overall governance was effective. As a consequence, no recommendations were made. A further audit will be carried out in quarter two to evaluate arrangements for ensuring that the project is delivered to cost and within timescale.

Substantial None



priorities(H, M, L)

Corporate Composite Invoices

Internal Audit completed an audit on controls surrounding the payment of composite invoices, i.e. an invoice where expenditure is charged to two or more budgets and is derived from information sourced from more than one location or Service. Examples of such payments include utility bills, leasing of photocopiers, agency staff etc.

Composite invoices generally involve an officer in one Service authorising an invoice for costs incurred by not only their own Service but also by other Services. It is therefore important that the authorising officer has a method of providing assurance that all the costs being invoiced in relation to the various Service areas reflect goods or services actually delivered or provided. This will reduce the risk of financial loss to the Authority due to costs being invoiced for goods or services which have not been provided, or the value of goods or services being invoiced not being correct or appropriate.

The findings were generally positive and reports were issued to 7 Service areas as well as a global summary of findings issued to all Directors. The issues identified by the audit mainly centred upon the absence of validation checks by the authorising officer or supporting assurance processes to confirm the accuracy of the invoice before payment. These included:

no checks being undertaken on recurring invoices, to ensure that the goods / service is still required;

invoices being paid before receipt of all goods received notes; staff certifying invoices not being aware if establishments listed on the

invoice were still requiring / using the service; and staff processing the invoices not being made aware of amendments to

the service provision, resulting in an overpayment.

Management have now confirmed that all the agreed actions have been completed. Further audit work in this area is also planned in 2015/16.

Adequate H – 1,M – 5,L – 4



priorities(H, M, L)

Public Health Commissioning The Public Health Grant to local authorities is made under Section 31 of the Local Government Act 2003, with Rochdale Council’s allocation for 2014/15 being £14.7m. After taking out costs such as staff salaries and other necessary operating expenses, the vast majority of these funds are spent on commissioning services. A range of mandatory and non-mandatory services are commissioned such as: Sexual Health; Health Checks; National Child Measurement Programme; Substance Misuse; Health Promotion and Prevention and Stop Smoking Services. This audit focused on evaluating the governance and contracting arrangements relating to commissioned services to confirm the effectiveness of contract monitoring and performance management and compliance with contract procedure rules.

Internal Audit is able to provide substantial assurance that the above processes are effective and sound systems of control are in place. The key action agreed was to ensure that signed contracts are in place before work commences to ensure all risks are appropriately covered. In addition it was agreed that a commissioning risk register will be established.

Substantial M – 1,L – 1



priorities(H, M, L)

Finance Annual Payroll Returns

The Payroll Section, Corporate Services undertake the payment of salaries and wages not only for administrative staff and teachers, but also for external agencies such as Rochdale Boroughwide Housing, Link4Life and some other smaller organisations. At the end of each tax year, the payments that have been made are summarised and details are entered onto various returns required by government agencies. Two of these returns are required to be signed off by the Section 151 officer:

‘Greater Manchester Pension Fund – Year End Reconciliation Statement for year 2014/15’ (in respect of the Local Government Pension Scheme); and

‘Teachers Pensions Contributions for the Year ended 31 March 2015’ (in respect of the Teacher’s Pension Agency).

Internal Audit was requested to undertake an independent check on the data supporting these returns for the 2014/15 tax year to confirm the integrity of the data and the accuracy of the information being reported. The audit work performed did not highlight any anomalies with either return. All checks were completed, found to be correct and the returns were duly signed off.

Substantial None



priorities(H, M, L)

Children’s Services - Schools

2 Primary Schools

These comprised reviews of the schools exposure to risk using the Ofsted document “Keeping your balance”, also taking account of other service areas and the extent of schools’ implementation of previous recommendations. Alkrington PrimaryBrimrod Community Primary

No high priority recommendations were made in respect of the above schools.

A number of key actions were agreed to ensure that: Finance Procedure Manuals are kept up to date; Enhancements are made to various policies including those relating to

Finance, Charging, School Meals, Disposal and Lettings Policy; All purchases are appropriately approved; All commitments are appropriately recorded; Process and controls associated with the Breakfast Club is enhanced;

and Treasury Management policies are agreed and implemented to

optimise use of available funds.

Adequate – 2

M – 19L – 6

Appendix BFOLLOW UP OF OUTSTANDING INTERNAL AUDIT RECOMMENDATIONS – STATUS AS AT 24 AUGUST 2015

Report Assurance Service High and

Medium priority actions

Final Date for Completion

Follow up date

Actions Complete

Actions Still in

Progress Notes on Follow Up

Audit

Asset Management (governance, roles & Responsibilities, Strategy and Policy)

A Economy and Environment 10 30/09/2014

Being followed up as part of current audit on Asset Management Strategy

Cash Handling A Corporate 1 31/10/2014 04/08/2015 1Banking and Cash

Handling Guidance now in draft and awaiting approval

Youth Offending Team A Children's 15 31/12/2014 29/05/2015 9 6

Due to various changes in systems and management structure, some actions will

now be completed by September 2015

Creditors Payments - Transaction Testing A Corporate 8 31/03/2015 To be followed up as part

of the 2015/16 audit

Debtors N/A Corporate 25 30/04/2015 Follow up in progress

within all relevant Service areas

Corporate Debt A Corporate 5 30/04/2015 03/07/2015 1 4 Remaining actions to be followed up 2015/16

Quality Assurance Framework L Children's 15 30/04/2015 To be followed up quarter

3 2015/16

ICT Policies A Corporate 6 31/05/2015 Follow up in progress

Report Assurance Service High and

Medium priority actions

Final Date for Completion

Follow up date

Actions Complete

Actions Still in

Progress Notes on Follow Up

Audit

Fostering Panel A Children's 25 31/07/2015 Follow up in progress

Adults Liquid Logic Information System A Adult 3 30/09/2015 To be followed up 2015/16

Appointeeship and Deputyship A Adult 10 30/09/2015 To be followed up 2015/16

Time Management - Environmental Management L Economy and

Environment 14 31/10/2015 14/08/2015 10 4Remaining actions to be

monitored and followed up 2015/16

Public Health Commissioning S Public Health 1 31/10/2015 To be followed up 2015/16

IT Desktop Asset Management L Corporate 8 30/11/2015 13/08/2015 5 3 Remaining actions to be

followed up 2015/16

Compliance with ICT Acceptable Usage Policy A Corporate 5 30/12/2015 To be followed up 2015/16

Elections A Corporate 11 31/12/2015

Internal Audit continuing to liaise with management in relation to implementation

of actionsCorporate CCTV Arrangements A Corporate 8 31/03/2016 To be followed up 2016/17

David Wilcock Head of Legal and Governance Reform

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