Agenda item

To consider the Joint Report (No. DC2109 – copy attached) of the Head of Democracy and Community and the Monitoring Officer, which sets out proposals for the future arrangements for the Committee.

The Committee considered the Joint Report of the Head of Democracy and Community and the Monitoring Officer (Report No. DC2109), which proposed changes to ensure the future effectiveness of the Committee, with a strong focus on its corporate governance role providing oversight, protection and public confidence in Council activities.

 

In introducing the Report, the Monitoring Officer explained that the Council, along with many other authorities within the sector, had been diversifying its range of activities to both mitigate the risk of financial restructuring as a result of Central Government funding changes, and to facilitate the Council to take a much stronger role in place shaping and to influence the regeneration of the area.  In order to deliver against this more diversified agenda, the Council had sought to establish key delivery vehicles such as the Rushmoor Development Partnership to pursue regeneration and Rushmoor Homes Ltd to deliver local housing solutions.  The Council had also sought to become more commercially focused in seeking out income generating sources and had considered a wide range of commercial income investment opportunities.   All of these areas of activity required good governance, careful oversight and risk management, supported with transparent arrangements to provide the public oversight, protection and confidence necessary.  It was felt that high quality Elected Member oversight was a pivotal lynchpin to providing that public confidence.

 

The Report advised that the Council was keen to build on lessons learned by high profile local authority failures, especially in respect of the role of corporate governance, use of expertise and independence and the approach to risk management and transparent decision making. 

 

The Report set out proposals to implement arrangements for the Licensing, Audit and General Purposes Committee to help ensure and support the Committee’s effectiveness in the future.  The proposed arrangements were:

 

·                Committee Name – It was proposed to change of the Committee’s name to ‘Corporate Governance, Audit and Standards Committee’, which was a more accurate reflection of the Committee’s work and focus.  This would take effect from the first meeting of the new Municipal Year in May 2021.

 

·                Terms of Reference and Statement of Purpose - It was proposed to add a new Statement of Purpose as an introduction to the Committee’s terms of reference to bring greater focus to the corporate governance and audit role.  This was set out in Appendix 1 to the Report.

 

·                Membership – It was proposed to continue the membership of the Committee as 11 Members (non-executive and politically balanced) with a new provision to appoint up to three additional non-voting, co-opted Independent Members.  These Independent Members would be invited to join meetings for discussion on all corporate governance and audit matters.

 

·                Independent Members – It was proposed to follow good practice, which showed that for committees with audit responsibilities, the co-option of independent members with technical knowledge and expertise could be beneficial, helping with the process of in-depth questioning and committee discussion.  A copy of the Person Specification for Independent Members was set out in Appendix 3 to the Report. 

 

          A public advertisement to recruit Independent Members would be published during April 2021 with a view to recommending an appointment for confirmation at the Annual Council Meeting in 2021.

 

          It was proposed that the following terms would apply to the appointment of Independent Members:

 

-           A fixed term of three years, with provision for early termination or extension of the appointment

-           The Independent Member would be eligible to be paid an allowance equal to the statutory co-optee allowance (currently £514 per year)

-           The Independent Member would be expected to follow the same code of conduct as Elected Members and with the register of interests.

 

The Committee was advised that role descriptions had been prepared for the Chairman and Members of the Committee, as set out in Appendix 2 to the Report.  It was noted that the role descriptions referenced the apolitical and independent nature of the Committee and a requirement for Committee members to have an interest in corporate governance matters.  It also emphasised a commitment to participate in training events to ensure knowledge and understanding of the Committee’s key areas of responsibility.   Members noted that the updated role descriptions would be incorporated in Part 3 of the Council’s Constitution (Section 10 – Councillor Role Descriptions).

 

It was advised that, during 2021/22 it was proposed to deliver an enhanced programme of learning and development support for Members on the Committee, based on the training modules set out in Appendix 4 to the Report. 

 

It was proposed to review the new arrangements in a year when the Committee would have had some experience of the changes.  In these circumstances, it was not intended to recommend that Standing Orders for the Regulation of Business be changed but to ask full Council to suspend Standing Orders at the Annual Council Meeting so that the new arrangements could be introduced for 2021/22.  Once the review had been undertaken, the proposed changes to Standing Orders could be formalised in the early part of 2022. 

 

During discussion, Members agreed that changes were needed due to the growing complexity of matters dealt with by the Committee and it was felt that the proposals were a good way forward.   The view was expressed that, in view of the onerous duties to be imposed on Members of the Committee, including in-depth training to be undertaken and the level of ability required, that a special responsibility allowance should be given to Members of the Committee.  Following consideration of the suggestion it was agreed by the Committee that the Council should also be recommended to appoint an Independent Remuneration Panel to examine whether a Special Responsibility Allowance should be paid to Members of the Committee.    

 

During further discussion, Members raised questions regarding the apolitical and independent nature of the Committee particularly in relation to corporate governance matters and how this might not always be possible.   It was also requested that Members of the Committee should have access to a list of financial management terminology and their meanings.   

 

In response to a question regarding training, it was explained that undertaking the training programme would ensure that Members were confident that they could not only take an independent view on the advice of professional officers but also could challenge, question and really get to grips with the information submitted for consideration and in so doing be satisfied that they were happy with the information provided. 

 

RESOLVED: 

 

(1)      That the COUNCIL BE RECOMMENDED to approve

 

(a)          the Committee’s name change to ‘Corporate Governance, Audit and Standards Committee’ from the Annual Council Meeting in May 2021;

 

(b)          updates to the Council’s Constitution to incorporate a new Statement of Purpose to precede the Committee’s terms of reference, as set out in Appendix 1 to the Report; and the updated Role Descriptions, as set out in Appendices 2 and 3;

 

(c)          the suspension of Standing Orders for the Regulation of Business at the Annual Council Meeting to enable the proposals set out in the Report to be implemented for 2021/22; and

 

(d)          the appointment of an Independent Remuneration Panel to assess the duties of the Members and Chairman of the new Committee and make recommendations regarding a Special Responsibility Allowance; and

 

(2)      RESOLVED: That

 

(a)      arrangements to recruit Independent Member(s) be based on the approach and terms set out in paragraphs 3.7 and 3.8 of the Report be agreed; and 

 

(b)      the implementation of a Members’ training programme for the Committee in 2021/22, based on the modules set out in Appendix 4 to the Report, be approved.