Statement of Accounts 2011/2012 - Blackburn with Darwen Borough ...

ANNUAL GOVERNANCE STATEMENT
software will be rolled out across the Council before the end of September in 2012/13.
5. Key elements of the internal control environment
Management Accountabilities Framework (MAF) – MAF is a quarterly reporting tool that requires each
Director to report, via the Deputy Chief Executive, Managing Director or the Strategic Director Resources
and Transformation, to the Chief Executive. The reports cover the effectiveness of the governance
arrangements in Departments (performance, budget management, the management of priorities, risk
management, health and safety and the application of fundamental controls), identifying weaknesses and
remedies. MAF is an evolving process and refinements and extensions to its coverage will continue.
These reports are considered by the Chief Executive’s Strategy Group as part of the Chief Executive
fulfilling his responsibility for ensuring that good governance is applied universally. For the same reason,
quarterly summary MAF findings are considered by the Audit Committee. Weaknesses have been
identified and addressed throughout the year; most of the actions in the significant issues section have
been derived either from MAF or from internal or external audit reports. The Audit Committee, at each
meeting, also reviews progress on such actions.
Primary Assurance Group (PAG) – The PAG’s role is to draw together the sources of assurance,
including those provided through MAF, and having challenged them to produce the Annual Governance
Statement for the Audit Committee’s and the Chief Executive’s consideration. The PAG is chaired by the
Strategic Director Resources and Transformation and it also has the Monitoring Officer and Section 151
Officer as members.
The Constitution was revised during 2010 to reflect the ‘strong leader model’ and changes agreed at both
Policy and Annual Council. It sets out the roles and responsibilities of the executive, non-executive,
scrutiny and officer functions, with clear delegation arrangements and protocols for effective
communication. Amendments are made as necessary during the course of the year to reflect changes in
the law and other changes which would require full Council approval.
The Constitution also contains codes of conduct for Members. New Members accept their code of
conduct as part of their induction. All Members now need to complete and submit “a notification by
member of a Local Authority of personal interests” form, which includes information relating to gifts and
hospitality. New appointees sign the staff code of conduct as part of their induction. In addition, each
Department maintains a registers of gifts and hospitality and of interests; the latter are reviewed at least
annually.
Processes to revise the Constitution involve reviewing and updating standing orders, standing financial
instructions, the scheme of delegation and supporting procedures (such as briefing papers and the
forward plan) to ensure risks identified are assessed and mitigated effectively. Also, the risk management
strategy is reviewed and revised annually. These further ensure that decisions are taken at the
appropriate levels and times, in a transparent manner and after fully assessing the related risks.
The Council’s financial management arrangements conform to the governance requirements of the
CIPFA Statement on the Role of the Chief Financial Officer in Local Government (2010).
6. Review of Effectiveness
The Council has responsibility for conducting, at least annually, a review of the effectiveness of its
governance framework including the system of internal control. This review of effectiveness is informed
by the work of the executive managers within the authority who have responsibility for the development
and maintenance of the governance environment and who sign an annual assurance certificate regarding
the effectiveness of the governance arrangements in place, the Head of Audit and Assurance’s annual
report, and also by comments made by the external auditors and other review agencies and
inspectorates.
The Council regularly reviews its Constitution and has delegated to the Audit Committee responsibility for
reviewing the effectiveness of the governance framework and for reporting to the Executive Board where
it thinks that there are issues that must be considered by the Executive. The Constitution and Scheme of
Delegation will be reviewed and revised during 2012/13 to take account of the changes following the
restructure, the new standards regime and other changes brought in by the Localism Act 2011.
The Scrutiny Committees set their own annual work plans and report to the Council annually. These
Committees also continue to hold the Executive to account through Scrutiny Reviews and a standard
agenda item entitled “work of the Executive”. This includes engaging and challenging Executive Members
about decisions taken in their portfolio areas and about matters included in the forward plan. Members
will continue to utilise Task and Finish Groups to work outside of Committees to scrutinise and work with
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