Corporate Governance Policy

Introduction  Back to Top of Page 
Oswestry Town Council is committed to the principles of good corporate governance. Alongside this document, the Town Council is working to meet the Practitioners’ Check List for Corporate Governance as launched by The Society of Local Council Clerks in London in May 2006.
   Corporate governance is the system by which this Council direct, monitor and control our functions and relate to our community. The Town Council is dependent on our Members and staff delivering excellent corporate governance which requires them to conduct themselves in accordance with the high standards expected by the local community.
Four fundamental principles of corporate governance are openness and inclusitivity, integrity and accountability. We have identified five interlocking dimensions in a corporate governance framework consisting of:

  • Community Focus
  • Service Delivery
  • Structures and Processes
  • Risk Management and Internal Control
  • Standards of Conduct

Our Code of Corporate Governance specifically identifies the action to be taken for each of the five interlocking dimensions of our business.
The Finance and General Purposes Committee of the Council is responsible for approving this Code and the Town Clerk and Responsible Finance Officer are entrusted for ensuring that it is kept up to date by review on an annual basis.
This Code fits into the Council’s Best Value Performance Plan which is published on an annual basis and sets out the Council’s vision, alongside corporate and service objectives, targets, performance etc. The document also recognises the wider requirements of policy and strategy and the necessity for interlocking with policy areas of other providers that includes for the Local Community Strategy, the Town Plan and the local Strategic Partnership.
This Council also places a great importance on partnership working, this in terms of the delivery of services, assisting other providers meet their targets and responsibilities and in terms of the development of local partnerships such as the Community Strategy and Crime Reduction.


Commitments  Back to Top of Page 

Within the commitments of this Code the Council will ensure that the principles of corporate governance are applied in all aspects of its activities and, in particular:

Community Focus  Back to Top of Page 

  • Working forum with the community.
  • Exercise in leadership in the community.
  • Undertaking an ambassadorial role to promote the well-being of the town.

Service Delivery Arrangements Back to Top of Page 

  • Ensuring that continuous improvement is sought.
  • Ensuring that agreed policies are implemented.

Structures and Processes Back to Top of Page 

  • Both Members and Officers understand and accept the responsibilities of an organisation.
  • Ensuring Members are fully involved in decision-making.

Risk Assessment and Internal Control Back to Top of Page 

  • Establishing and maintaining a system strategy and process for managing risk.
  • Ensuring that internal control processes are effectively tested.
  • Ensuring that internal processes, procedures and systems are reviewed and updated to accommodate any required changes.

Standards of Conduct Back to Top of Page 

  • Defining the standards of personal behaviour that are expected from Members and Officers.
  • Put in place and maintain arrangements to monitor and ensure compliance.

Actions to be taken by the Town Council in relation to each dimension of corporate governance Back to Top of Page 

COMMUNITY FOCUS Back to Top of Page 
The Town Council will:
(a)       Publish on an annual basis a report in the style of a Best Value Performance Plan presenting an objective, understandable report of the authority’s activities, achievements, financial position and performance. The plan will include current performance in service delivery and plans to maintain and improve service delivery.
(b)       Put in place proper arrangements for the independent review of the financial and operational reporting processes. This will be achieved through The Audit Commission. The annual audit letter is presented to the Finance and General Purposes Committee and an independent internal auditor, namely Oswestry Borough Council, directly appointed by the Council. The Council also has in place an Audit Panel to receive reports and reviews from the independent Auditor.
(c)       Put in place proper arrangements designed to encourage individuals and groups from all sections of the community to engage with, contribute to and participate in the work of the authority. This is achieved through regular Best Value Review Group, specific working with individual groups and organisations and establishing links and regular meetings with local interest groups/forums. The Council also has a policy of providing a fifteen minute public session time in advance of each Council or Standing Committee meeting.
(d)       Making an explicit commitment to openness in all dealings, subject only to the need to preserve confidentiality in those specific circumstances where it is proper and appropriate to do so. The Council believes it is open and honest in its communications and in working with others and the Council has detailed protocols and procedures for processing Data protection or Freedom of Information requests. The publication scheme exists for such access.
(e)       Establish clear channels of communication with all sections of the community and other stakeholders and put in place proper monitoring arrangements to ensure they operate effectively. The Council has many ways of communicating with our citizens and stakeholders. These include publications and leaflets. A new website to the launched in the summer of 2006, established links and regular meetings with local interest groups and forums, such as Youth Council, Tourism Association, Market Town Partnership, Community Partnership, Crime Reduction Partnership etc.The Council also provides details in the Council tax leaflet and provides regular newsletters for the various services that include markets, farmers’ markets etc. The Council also has a positive communication strategy in terms of providing information for the local press and media.
(f)        Ensure that a vision for their local communities and their strategic plans, priorities and targets are developed through robust mechanisms, and in consultation with the local community and other key stakeholders. The Council believes that it is working towards this achievement by its membership of various local partnerships, including Crime Reduction, Community Strategy and Market Town Partnership. It has been instrumental in the development of a Town Plan and is fully committed to taking its vision as a community champion into the various partnerships I which it operates.

SERVICE DELIVERY ARRANGEMENTS Back to Top of Page 
The Town Council will:
(a)       Set standards and targets for performance in the delivery of services on a sustainable basis and with reference to equality policies.

  • The standards of the Council are laid out in its Corporate Aims and has a policy relating to equality and ensuring that everyone is treated fairly. More specific standards and targets of performance are set out in the Best Value Performance Plan and sound systems for providing management information are available within our Performance Plan.

(b)       Monitor and report performance against agreed standards and targets and develop comprehensive and understandable performance plans.

  • Our Best Value Performance Plan adopted before the 30th June each year sets key performance measures and targets. The Council works from a small basket of performance indicators and regular financial performance information is reported to each Standing Committee.
  • The annual audit report also details performance against standards and targets and, in particular, the Best Value Audit.

 (c)       Foster effective relationships and partnerships with other public sector agencies and with the private and voluntary sectors and consider outsourcing where it is efficient and effective to do so in delivery services to meet the needs of the local community and put in place processes to ensure that they operate effectively in practice. The Council has many examples of effective partnership working, including the Market Town Partnership, the Crime Reduction Partnership, the Community Strategy and working with The Shropshire Association of Local Councils. The Council has also established excellent local partnerships and relationships with organisations such as the Treble Niners, Oswestry Cattle Auctions, Oswestry Borderland Tourism Ltd., Oswestry Civic Society and Oswestry in Bloom.
(d)       Respond positively to the findings and recommendations of auditors and statutory inspectors and put in place arrangements for the effective implementation of agreed actions. Audit Commission reports and responses are presented to the Council, together with action plans to address issues raised. An internal audit panel is also established.

STRUCTURES AND PROCESSES Back to Top of Page 
The Town Council will:
(a)       Put in place clearly documented protocols governing relationships between members and officers.

  • These are taken from statutory documents produced by the Standards Board for England and adopted by the Council.
  • The Council has put in place arrangements to ensure that Members are properly trained for their roles and have access to all relevant information, advice and resources. Upon appointment, each Councillor is provided with a Council Handbook and in-house is immediately provided by the Town Clerk. The Council subscribes to training from the County Association, the County Accreditation Panel, The National Association of Local Councils, The Society of Local Council Clerks and the University of Gloucestershire. The Council itself is also known as a training provider for the sector.
  • The Council provides the strategic direction for the authority and devolves it powers to the four Standing Committees of the Council. The Council has a performance management policy that clearly identifies the role of Councillors, Committees and appointed staff.

(b)       Develop and maintain a scheme of delegates or reserved powers, which should include a formal schedule of those matters specifically reserved for the collective decision of the authority.

  • The Council has a scheme of delegates powers which is devolved to the four Standing Committees of the Council and/or the Town Clerk as appropriate.

(c)        Put in place clearly documented and understood management processes for policy development, implementation and review and for decision making, monitoring and control and reporting; and formal procedural and financial regulations to govern the conduct of the authority’s business.

  • The performance management system of the Council goes some way to document this requirement but as part of the corporate governance implementation, then this matter is under review, particularly acknowledging the practitioner’s check list as provided by The Society of Local Council Clerks which is being examined by a working group of the Council over the next twelve months.

(d)       Ensure that the Town Clerk is made responsible to the authority for all aspects of operational management.

  • This forms part of the specific job description and is a key requirement. Equally the R.F.O. of the Council is the responsible person for ensuring that appropriate advice is given to it on all its financial matters for keeping proper financial records and accounts and for maintaining an effective system of internal financial control.

(e)       Adopt clear protocols and Codes of Conduct to ensure that the implications and supporting community political leadership of the whole Council acknowledged and resolved.

  • Clear protocols and codes of conduct are set out in respect of Members’ Code of Conduct, Communication Strategy, I.T. Code of Practice and the plethora of policy documents relating to good governance within the authority.

RISK MANAGEMENT AND INTERNAL CONTROL Back to Top of Page 

The Town Council will:

(a)       Develop and maintain robust systems for identifying and evaluating all significant risks which involve the proactive participation of all those associated with planning and delivering services.

  • The Council is in the process of developing a risk management strategy, however while development risk management frameworks exist for all service areas, the ultimate responsibility for risk management rests with the Town Clerk, however elements are devolved to the Community Services Officer who liaises with experts as necessary to guide and drive the development of risk management forward, particularly risk profiling.

(b)       Aim to ensure that our services are delivered by training and experienced people.

  • We have a long established staff that is trained and hold various professional qualifications. All posts have job descriptions and personal specifications detailing the essential and desirable qualities, abilities, qualifications and expertise necessary to undertake the duties of any post. The Council is an ardent supporter of providing professional development opportunities for all members of staff.

(c)        Maintain an objective and professional relationship with its external auditors and statutory inspectors.

  • The Council has worked hard to build up the necessary relationships with Oswestry Borough Council as internal auditor and The Audit Commission as external auditor. The annual audit letter and any reports are presented to Council and/or Finance and General Purposes Committee, as appropriate.

STANDARDS OF CONDUCT Back to Top of Page 

The Town Council will:
(a)       Develop and adopt formal codes of conduct defining the standards of personal behaviour to which individual members, officers, and agents of the authority are required to subscribe and put in place appropriate systems and processes to ensure that they are complied with.

  • The Council has a Members’ Code of Conduct, it is awaiting the Officers’ Code of Conduct, it has an I.T. Code of Practice and Employee Code of Practice and is developing a number of policy documents around the requirements of promoting high standards of personal behaviour as expected from Members and Officers. The Standards Committee of Oswestry Borough Council has the clear remit and process for dealing with issues relating to the Town Council and the employee handbook of the Council contains policy statements and guidance on equal opportunities, whistle blowing, finance at work, health and safety at work, etc. There is a clear and fully documented staff discriplinary process to deal with breaches in any code or protocol.

(b)       Put in place arrangements to ensure that members and employees of the authority are not influenced by prejudice, bias or conflicts of interest in dealing with different stakeholders and put in place appropriate processes to ensure that they continue to operate in practice.

  • The employees' code of conduct stipulates that they must not be influenced by prejudice, bias or conflicts of interest in any matter relating to the authority. All declarations of interest are recorded in the appropriate minute book and staff, where appropriate; assist Members to ensure that guidance is provided.

(c)        Put in place arrangements for whistle blowing to which staff and all those connected with the Council have access. A policy document is available and provided to all staff which actively encourages Members and staff to blow the whistle about wrong doing.

SERVICE DELIVERY - ORGANISATIONAL STRUCTURE Back to Top of Page 

The Council itself is the policy and strategic decision making body for the Council and it devolves delegated functions and budgets to four Standing Committees, namely Markets and Car Parks, Development and Planning, Finance and General Purposes and Amenities. The cycle for these meetings is agreed at the Annual Meeting of the Council each May. The head of the paid service of the Council is the Town Clerk who is assisted by a range of Officers that include the R.F.O. and Community Services Officer. The decision making framework for the above is defined in the performance management system as adopted by Council.

OUR ASPIRATIONS Back to Top of Page 

This Code of Corporate Governance is a first attempt that is designed to set out the current operational systems of the Council and the policies and procedures that we have in place to promote good corporate governance. The concept is relatively new to the parish and town council sector and therefore the Town Council has worked with The Society of Local Council Clerks as a member of the former 41 Best Value Group of Parish and Town Councils to develop a template for corporate governance for the sector. At the May 2006 Larger Councils Conference, promoted by The Society of Local Council Clerks, a                              check list was adopted and during the next twelve months the Town Council will set up a relevant group to examine the priorities as set out in the document and these will be introduced into the revised 2007 Code of Corporate Governance. The index for that practitioners’ guide is set out below:

  • Assessing the needs/opportunities for the Town
  • Coherent Programmes based on local needs and opportunities
  • Organisational Aims and Objectives
  • Communication Strategy
  • Supporting Partnerships
  • Equal Access to Services
  • E-Government and ICT Strategies
  • The Council’s Policy and Decision Making Processes
  • Comprehensive Corporate Planning Processes
  • Best Value - Securing Continuous Improvement
  • Human Resources Strategy
  • Asset Management Strategy
  • Legality of Transactions
  • Treasury Management - In relation to Good Stewardship of Resources
  • Financial Reporting and Monitoring
  • Standard of Financial Conduct
  • Internal Financial Control Systems (i.e. Internal Audit Function)
  • Medium and Long Term Financial Planning, (including Reserves/Balances)
    Performance Management Systems
  • Risk Management
  • Project Management
  • Effective Leadership
  • Mutual Respect
  • Standards of Conduct/Ethical Framework
    SUMMARY Back to Top of Page 

This document is understood to be one of the first Code of Corporate Governance promoted by a parish or town council. The feedback on this document would be appreciated, however it attempts to set out in an open, honest and transparent way the way in which this Council directs and controls its functions and relates to its community.

David J. Preston,
Town Clerk.