§ Mr. LoveTo ask the Secretary of State for Transport, Local Government and the Regions if he will make a statement on the methodology used to carry out corporate governance reviews of local authorities; and if he will make a statement. [25741]
§ Dr. WhiteheadFor the purposes of inspecting corporate governance arrangements in local authorities, these are defined as
The systems and processes by which local authorities lead, direct and control their functions and relate to their communities and partners.This definition and the framework to inspect these arrangements are based on the framework for developing a local code of corporate governance published in 2001 jointly by the Chartered Institute for Public Finance Accountants (CIPFA) and the Society of Local Authority Chief Executives (SOLACE). This has five main themes: Community Focus; Structures and Processes; Risk Management and Internal Control; Service Delivery Arrangements; and Standards of Conduct. In addition, a corporate governance inspection will address other, cross-cutting elements or indicators of corporate performance, such as people and their relationships, the role of Information and Communications Technology, e-services and political and managerial leadership, among others.
Corporate Governance inspections build directly on the methodological approach developed for best value inspections of local authority services, including the 857W collection of evidence from an assessment of key council documents, interviews with key personnel, group discussions with staff, the public and stakeholders. Inspections last one week or two weeks, in lower and upper tier authorities respectively and as with best value service inspections, councils are briefed throughout the inspection process and have the opportunity to respond to the inspection findings, presented to them shortly after the on-site phase has ended, and on the draft report.
Corporate Governance inspection teams will generally comprise one from each of the following personnel:
- Managing Inspector (a senior inspector from the Audit Commission)
- Best Value Inspector (from the Audit Commission)
- District Auditor/Audit Manager, or alternative financial specialist
- Chief Executive (or ex-CEX), or senior manager in a council
- Council Leader, or senior member
- Benefit Fraud Inspector
- Ofsted Inspector (in inspections of upper tier authorities)
- Social Services Inspector (in inspections of upper tier authorities).
The Local Government White Paper, published on 11 December, will require all upper tier authorities to be subject to a comprehensive performance assessment. These assessments will be informed by the experience of using the corporate governance inspection methodology.
§ Mr. LoveTo ask the Secretary of State for Transport, Local Government and the Regions if he will list those local authorities who have(a) completed, (b) are undergoing and (c) will start in the year to the end of April 2002 a corporate governance review; and if he will make a statement. [25738]
§ Dr. WhiteheadThe information is as follows:
- (a) Hackney, Walsall, Hillingdon, Enfield
- (b) Corby, Mendip, Bromsgrove, Rotherham, Bristol
- (c) Torbay, Merton, Rossendale, Hull, Harlow.
The Audit Commission is finalising its wider approach to the comprehensive assessment of performance in councils, initially for all 150 upper tier authorities in England, as required by the recent Local Government White Paper. It will use the experience from these early corporate governance inspections to develop an approach that enables inspectors—including experienced practitioners from local government—to assess key features of corporate governance arrangements.