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Agenda item

LOCAL CODE OF CORPORATE GOVERNANCE 2026

THE REPORT OF THE POLICY AND COMMUNITIES MANAGER

 

For the Finance, Audit & Risk Committee to approve the Local Code of Corporate Governance for 2026.

Decision:

RESOLVED: That the Committee approved the Local Code of Corporate Governance 2026 (Appendix A).

 

REASON FOR DECISION: It is recommended practice to review the Local Code of Corporate Governance each year to ensure it remains up to date and relevant.

Minutes:

Audio recording – 51 minutes 9 seconds

 

The Policy and Community Manager presented the report entitled ‘Local Code of Corporate Governance 2026’ and highlighted that:

 

·       This report was provided to seek approval for the governance review 2026; this code was to be approved annual.

·       The governance framework was based on the 2016 principles of the framework of Chartered Institute of Public Finance and Accountancy (CIPFA) and Society of Local Authority Chief Executives (SOLICE).

·       The code at appendix A followed a different format from previous years and was adjusted following training by CIPFA.

 

The Policy and Strategy Officer presented the report entitled ‘Appendix A - Local Code of Corporate Governance March 2026’ and highlighted that:

 

·       The framework covered principles A to G. Principles A and B provided overarching requirements for acting in the public interest and principles C to G focused on the implementation of governance and achievement of outcomes.

·       The principles covered themes such as ethical values, stake holder engagement, the capability of the authority, managing risks and accountability.

·       CIPFA and SOLACE published an addendum for the framework in May 2025, which addressed changes in Local Government governance since 2016, and it encouraged a more robust review of governance.

·       In line with the guidance the addendum was considered partially for the Annual Governance Statement (AGS) 2024/25 and the advice in the addendum would be fully implemented in the AGS 2025/26 as set out in the code for 2026 (Appendix A)

·       The code now includes more North Hertfordshire specific government arrangements, policies and procedures making it more organisationally specific.

·       The code outlined the governance structures and the responsibilities of each of those at the Council, followed by a list of sources of assurance, for evidence of effectiveness.

·       Feedback from the leadership team has been incorporated into the new local code.

·       One of the titles of the principles was missing from the Local Code but the full content of the principle was in that section, and this would be rectified before publication.

·       Media relations training was mentioned, this had changed and now was available to Cabinet Members only with all other Members directed to LGA training.

·       Following approval, the Code would be published on corporate governance internet page and shared internally on the Hub and Members Information Bulletin.

·       The code would be used to draft the AGS 2025/26 which would be bought back to the Committee in Summer 2026.

 

The following Members asked questions:

 

·       Councillor Paul Ward

·       Councillor Stewart Willoughby

·       Councillor Vijaiya Poopalasingham

·       Independent Member John Cannon

 

In response to questions, the Policy and Community Manager advised that:

 

·       The code was imbedded in the Councils culture and had been signed off by the Leadership team so the Council should be compliant day to day, this would be checked regularly throughout the year.

·       The different policies were reviewed at the end of its time, it was service specific how long a policy lasts, this information could be added to the AGS.

 

In response to questions, the SIAS Head of Assurance advised that:

 

·       By way of clarification he prepared and co-authored the equivalent documents at HCC and this document was a description of how the Council meets the principles set out in the SOLACE guidelines, where as the AGS was the review of effectiveness of those governance arrangements.

·       The various sources of assurance of how the Council stays compliant were in the table in Appendix A. SIAS and SAFS are amongst the annual assurance providers mentioned.

·       Adding the policy end dates to the AGS might make it harder to read and therefore risks taking away from the purpose of the AGS in which it was accessible and understandable to everyone.

·       When SIAS came across policies that were out of date this would be picked up at audit and they would be reviewed.

 

In response to questions, the Director – Resources advised that:

 

·       The risk strategy set out that he was the Councils Risk Manager Champion Officer and Councillor Ian Albert was the Councils Risk Manager Champion Member.

·       The Council had expiry dates on policies, but it was deemed more appropriate to review them when something changed rather than just because a certain amount of time had passed. The onus for this would be on the policy owner.

·       The Asset Management Plan could come to this Committee in the future; he would take this away as an action to check with the service area.

 

In response to questions, the Policy and Strategy Officer advised that:

 

·       At the CIPFA training other Local Authorities bought their local code of governance equivalents, different documents did vary in length, which was Council specific.

·       The Council have tried to reduce the length of the document to help with accessibility while still covering the principles, however as this document was a lot more Council specific it was longer than usual. This would hopefully make the AGS a bit shorter.

 

Councillor Vijaiya Poopalasingham proposed and Councillor Daniel Wright-Mason second and, following a vote, it was:

 

RESOLVED: That the Committee approved the Local Code of Corporate Governance 2026 (Appendix A).

 

REASON FOR DECISION: It is recommended practice to review the Local Code of Corporate Governance each year to ensure it remains up to date and relevant.

Supporting documents: