Audit, Standards & General Purposes Committee
Agenda Item 38
Subject: Code of Corporate Governance and Risk Management Framework
Date of meeting: 28th January 2025
Report of: Director of People and Innovation
Contact Officer: Name: Rima Desai, Luke Hamblin
Tel: 01273 291268, 01273 291496
Email: rima.desai@brighton-hove.gov.uk, luke.hamblin@brighton-hove.gov.uk
Ward(s) affected: All
1.1
Our vision is to deliver a better Brighton & Hove for
all where everyone can thrive as part of a healthy, fair and
inclusive City and this report provides key details on the
Council’s governance and risk arrangements that underpin
delivery of the Council Plan.
1.2 The report includes the Council’s updated Code of Corporate Governance, which forms part of the Council’s constitution and sets out how the council’s governance arrangements work towards meeting the seven principles of good governance, based on the ‘Delivering Good Governance in Local Government Framework 2016’ published by The Chartered Institute of Public Finance & Accountancy (CIPFA).
1.3 The Code of Corporate Governance has been updated following the adoption of the new Constitution on 16th May 2024.
1.4 The report also includes our Risk Management Framework. Cabinet is responsible for ensuring that the council has a robust risk management framework in place with Audit, Standards and General Purposes Committee providing assurance on the adequacy and effectiveness of the risk management framework.
1.5 The Code of Corporate Governance and Risk Management Framework directly support the Council Plan Outcome 4: A responsive council with well-run services – Good governance and financial resilience.
2.1 Committee approve the updated Code of Corporate Governance as included in appendix 1.
2.2 Committee note the current Risk Management Framework as included in appendix 2. Any feedback from the committee will be taken into account when refreshing the Risk Management Framework for approval by Cabinet.
3.1 The Code of Corporate Governance, detailed in appendix 1, is a part of Brighton & Hove Council’s Constitution, which sets out how the council conducts its business, including: who is responsible for making decisions and how decisions are made, procedural matters (standing orders), the role of officers and standards and ethical governance
3.2 We have used the CIPFA/SOLACE guidance, refreshed in 2021, to comply with the Good Governance Framework which sets our seven core principles to achieve good governance as follows:
A. Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law
B. Ensuring openness and comprehensive stakeholder engagement
C. Defining outcomes in terms of sustainable economic, social and environmental benefits
D. Determining the interventions necessary to optimise the achievement of the intended outcomes
E. Developing the entity’s capacity, including the capability of its leadership and the individuals within it
F. Managing risks and performance through robust internal control and strong public financial management
G. Implementing good practices in transparency, reporting, and audit, to deliver effective accountability.
3.3 The responsibilities of the Audit, Standards and General Purposes Committee in the Council’s Constitution includes the independent scrutiny and examination of the Council’s financial and non-financial processes, procedures and practices to the extent that they affect the Council’s control environment. Committee should ensure the council has a sound system of internal control which facilitates the effective exercise of its functions and the achievement of its aims and objectives as required by regulation 3(a) of the Accounts and Audit Regulations 2015
4.1 The council operates a Risk Management Framework, detailed in appendix 2, which outlines the processes and controls in place to manage risks that may impact the council’s ability to deliver the Council Plan.
4.2 Our Risk Management approach was audited in 2023/24 and received ‘substantial assurance’. The purpose of the audit was to provide assurances that the controls are in place to meet the following objectives:
· Actions are identified in response to the Council’s strategic risks are implemented fully and timeously
· Strategic risk registers are updated regularly and provide clear communication to senior management, on the progress of actions. This would include where actions are implemented, in progress, have been delayed or need to be changed.
4.3 The responsibilities of the Audit, Standards and General Purposes Committee in the Council’s Constitution includes the independent scrutiny and examination of the Council’s financial and non-financial processes, procedures and practices to the extent that they affect the Council’s control environment. Committee should ensure the effectiveness of the council’s arrangements for the management of risk as required by regulation 3(c) of the Accounts and Audit Regulations 2015.
4.4 Going forward, the intention is to include ‘Risk Implications’ section in all cabinet reports to detail the identified risks and management.
4.5 The below table contains the current strategic risks, their initial risk score and their target risk score (Likelihood x Impact). The full Strategic Risk Register is detailed in appendix 3.
|
Risk Ref and Owner |
Risk Title |
Initial Risk Score |
Target Risk Score |
|
SR25 Corporate Director Corporate Services |
Failure to use the council’s resources and capabilities to deliver the Council Plan and adapt to the evolving needs of the city |
25 5 x 5 |
20 |
|
SR02 Chief Finance Officer |
Failure to develop and deliver a Medium-term financial strategy (MTFS) to ensure financial sustainability and resilience |
20 5 x 4 |
16 |
|
SR38 Corporate Director City Services |
Failure to take effective action to increase our city’s resilience to climate change, improve biodiversity and transition to net zero |
20 5 x 4 |
15 5 x 3 |
|
SR10 Corporate Director Corporate Services |
Failure to adequately protect information assets from a successful cyber-attack impacting our ability to deliver a responsive council with well-run services |
16 4 x 4 |
12 |
|
SR18 Corporate Director Corporate Services |
Failure to invest in and maximise use of digital technology to enable a responsive council with well-run services |
16 4 x 4 |
12 |
|
SR13 Corporate Director Housing, Care & Wellbeing |
Failure to ensure effective safeguarding arrangements to keep adults safe |
16 4 x 4 |
12 3 x 4 |
|
SR15 Corporate Director Families, Children & Learning |
Failure to ensure effective safeguarding arrangements to keep children and young people safe from harm and neglect |
16 4 x 4 |
12 3 x 4 |
|
SR21 Corporate Director Housing, Care & Wellbeing |
Failure to optimise council housing stock, make best use of available housing in the city and deliver new affordable homes |
16 4 x 4 |
12 4 x 3 |
|
SR24 Corporate Director Corporate Services |
Failure to provide a coordinated approach to ensure equity of access, outcomes and experiences for all |
12 |
9 |
|
SR39 Corporate Director Housing, Care & Wellbeing |
Failure to maintain building and fire safety of council homes and property |
New risk: scores under development |
|
|
SR40 Corporate Director City Services |
Failure to deliver an accessible, clean, and well maintained city that develops a flourishing and inclusive local economy |
New risk: scores under development |
|
5.1 The council routinely reviews and strengthens its Risk Management Framework to ensure that it remains fit for purpose.
5.2 Risk management is audited annually by Internal Audit and reported to Audit, Standards and General Purposes Committee, with any recommendations and feedback considered as part of the review process.
5.3 Risk management is an essential part of our governance arrangements and one of the eight elements that make up the council’s Performance Management Framework.
5.4 Moving forward the Code of Corporate Governance will be reviewed annually.
6.1 This is an internal matter to comply with legislation and as such no engagement or consultation has been undertaken in this regard.
7.1 The Code of Corporate Governance forms a key part of the council’s drive to ensure continuous improvement in the way the council operates. Members of the Audit & Standards Committee should consider and approve the proposed update.
7.2 The council believes it has a robust Risk Management Framework as evidenced by this report to meet the challenges of delivering services in the financial context that local authorities are working in.
8.1 There are no direct financial implications arising from the report. However, the Code of Corporate Governance and Risk Management Framework ensure that the council has in place clear policy and practice for the stewardship of public money and ensures that appropriate consideration of risk is given to all decision-making at both officer and member level. They also provide clear standards of compliance and conduct and enable internal and external auditors and inspectorates to assess effectiveness of the arrangements and compliance with the code.
Finance officer consulted: Nigel Manvell Date: 19/12/2024
9.2 All corporate Strategic
Risks potentially have legal implications. Strategic
Risk details are reported to Cabinet; these include reference to
key implications.
Name of lawyer consulted: Victoria Simpson Date consulted: 18/12/2024
10.1 Being a fair and inclusive city is one of the four outcomes of the Council Plan
and the Risk Management Framework details the processes and procedures that ensure the consistent and robust identification and management of risks within desired levels across the council, supporting openness, challenge, innovation and excellence in the achievement of council objectives.
11.1 The council has a strategic risk linked to Net Zero and the adaptation and mitigation of climate change detailed in appendix 3.
Supporting Documentation
1. Code of Corporate Governance
2. Risk Management Framework
3. Strategic Risk Register
1. None