ANNUAL GOVERNANCE STATEMENT

2018/19

www.wakefield.gov.uk

ANNUAL GOVERNANCE STATEMENT FORTHE YEAR ENDED 31st MARCH 2019

Wakefield Council is committed to the highest standards of corporate governance.

Governance is about the Council ensuring it is doing the right things, in the right way,for the right people, in a timely, inclusive, open, honest and accountable manner.

It comprises the systems and processes, and culture and values, by which bodies are directed and controlled and through which they account to, engage with and where appropriate, lead their communities.

By applying the principles in our Corporate Governance Framework and applying our local Codes of Conduct for Members and employees, we commit to devising anddelivering services to the citizens of Wakefield in a way that demonstrates our valuesof Caring, Ambitious, Integrity and Respect together with demonstrating accountability, transparency, effectiveness, integrity, and inclusivity.

A key aspect of governance is the requirement to put in place a system of internal control that provides reasonable assurance that policies, processes, tasks, behaviours and other aspects of the Council, taken together, facilitate its effective and efficient operation, help to ensure the quality of internal and external reporting, help to ensure compliance with applicable laws and regulations alongside managing risk to a reasonable level.

This Annual Governance Statement supports the Council’s Statement of Accountsand outlines how we manage our affairs to deliver high quality services andensure that public money is efficiently and effectively spent.

Forward from the Leader of the Council and the Chief Executive

We both recognise the importance of having good management, effectiveprocesses and other appropriate controls in place to enable the Council to deliverservices and achieve the best possible outcomes for the people of the District.

The last year has seen many challenges facing local government and these havebeen felt as much in Wakefield as anywhere else. The Council alongside otherlocal services continue to face a tough and complex set of pressures. Thefinancial environment within which the Council is operating continues to besignificantly challenging, the 2018/19 financial year being the eighth year ofGovernment austerity.

Adding to these pressures, the demand for public services such as health, socialcare and education has increased and as a Council we are seeking to understandmore about poverty and how it impacts on our residents to support them not onlyto exit poverty but also to reduce and mitigate any negative impacts on them.

Within this overall context, the role of good governance is critical to public trustand confidence in decision making. To ensure the Council continues to operate aseffectively as possible, the Council embraces a governance framework whichensures consistency of purpose across the many services delivered, encourageshigh standards of performance and conduct and a strong public service ethos.

Reductions in Government funding has led to major transformation of our servicesresulting in changes in staffing levels and in the way in which services areprovided. As a result it is more important than ever that we make the best possibleuse of the public money we are entrusted with ensuring resources are aligned toour strategic priorities to create ‘Successful Businesses’, ‘Successful People’,‘Successful Places’ and ‘Successful Council’.

This will allow the Council to provide the best services possible; to respond to theviews of residents and other stakeholders; and to support all residents to improveliving standards and avoid the trap of low income, debt and the insecurity of ‘life onthe edge’.

We are committed to ensuring that our approach to good governance can easily beunderstood and our Corporate Governance Framework sets out our commitmentto good governance alongside our Key Governance Pledges which are set out insection three of the document.

We are also committed to ensuring that we fulfil our responsibilities in accordancewith the highest standards of governance, underpinned by the ethical behaviour ofOfficers and Members

Each year the Council is required to produce an Annual Governance Statement,which describes how our corporate governance arrangements have been working.This Statement provides the overview of our arrangements.

To help us do this the Chief Legal Officer, Section 151 Officer and GovernanceManager have undertaken a review of our governance framework and thedevelopment of the Annual Governance Statement.

The Audit and Governance Committee alongside the Council’s CorporateManagement Team have considered and challenged the content and significantgovernance issues identified in the Statement and satisfied themselves that thisAnnual Governance Statement properly reflects how the Council is run and thatappropriate improvement actions have been identified and will be delivered.

Councillor Peter Box CBE Merran McRaeLeader of the Council Chief Executive of the Council

1. INTRODUCTION

1.1 This statement provides an overview of how the Council’s governancearrangements operate, including how they are reviewed annually to ensurethey remain effective. A summary of significant governance challengeswhich the Council faces is also given, alongside an explanation of whatactions have been taken to bring about required improvements, and whatwork is still to be done. This provides transparency, and gives assurancethat the Council is committed to continuously improve the way in which itfunctions. More detail on particular topics can be accessed by clicking onthe hyperlinks which are highlighted and underlined throughout thedocument.

2. THE COUNCIL’S VISION AND VALUES

2.1 The Council’s Vision for the Wakefield District is that: people thrive,businesses succeed and visitors are welcome’ with our Mission to be caring,ambitious and modern. To help us realise this vision our strategic prioritiesare to create:-

Successful Businesses – Growing a higher value economy andcreating good jobs;

Successful People – Reducing inequalities, growing skill levels, enabling a good quality of life and supporting families;

Successful Places – Celebrating a unique cultural offer and creatingvibrant communities that are better connected;

Successful Council – Ambitious, enterprising, dedicated and efficientin delivering excellent services.

2.2 Our Values - Caring, Ambitious, Integrity and Respect are key to what wewant to achieve in Wakefield. The way we go about delivering our valuesand priorities are equally important, and within the Council we havedeveloped ‘The Wakefield Way’ which is a reflection of the principles thatunderpin how we work. The Wakefield Way guides how we provideservices, our decision-making and influence how we improve our services.

3. SCOPE AND RESPONSIBILITY

3.1 Wakefield Council is responsible for ensuring that its business is conductedin accordance with the law and proper standards, that public money issafeguarded and properly accounted for, and used economically, efficientlyand effectively. The Council also has a duty under the Local GovernmentAct 1999 to make arrangements to secure continuous improvement in theway in which its functions are exercised, having regard to a combination ofeconomy, efficiency and effectiveness.

3.2 In discharging this overall responsibility, Elected Members and seniorOfficers are responsible for putting in place proper arrangements for thegovernance of its affairs and the stewardship of resources at its disposal.To this end this statement is prepared with consideration to the CharteredInstitute of Public Finance and Accountancy (CIPFA)’s Good GovernanceFramework and the Council’s approved Corporate Governance FrameworkCorporate Governance Framework which has at its heart the following core principles:-

Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law.

Ensuring openness and comprehensive stakeholder engagement

Defining outcomes in terms of sustainable economic, social, and environmental benefits

Determining the interventions necessary to optimise the achievement of the intended outcomes

Developing the entity’s capacity, including the capability of its leadership and the individuals within it

Managing risks and performance through robust internal controland strong public financial management

Implementing good practices in transparency, reporting, and audit to deliver effective accountability

3.3 The Council is committed to fulfilling its responsibilities in accordance withthe highest standards of governance, underpinned by the ethical behaviourof officers and Members. Our key governance pledges are:-

1. We will clearly set out our objectives and what we are trying to achieve.

2. We will measure how effective our services are and take action toimprove them thereby delivering better outcomes for our citizens.

3. We will put in place robust risk management arrangements that help usmitigate threats and make the most of opportunities which presentthemselves.

4. We will work with other public services and partners, such as the Policeand NHS, to improve services for Wakefield residents and ensure thatour communities reach their full potential

5. We will ensure we make the best use of taxpayers’ money by takingprudent financial decisions.

6. We will set out in our Constitution who can take which decisions.

7. We will behave in ways that reflect our values and high standards ofconduct.

8. We will ensure people in the Council making decisions have access toaccurate information to help them take decisions in the best interests ofWakefield’s people.

9. We will record and publish the decisions we take and the reasons forthem. Wherever possible, we will take the most important decisions inpublic.

10.We will carry out scrutiny of our services to make sure they meet ourresidents’ needs.

11. We will be sensitive about how we collect and record information aboutcitizens of Wakefield and safeguard it from misuse.

4. THE GOVERNANCE FRAMEWORK

4.1 The governance framework comprises the systems and processes, theculture and values, by which the Council is directed and controlled and itsactivities through which it accounts to, engages with, and leads itscommunity. It enables the Council to monitor the achievement of ourobjectives and to consider whether these objectives have led to the deliveryof appropriate, cost effective services.

4.2 The governance framework has been in place for the 2018/19 MunicipalYear. During the course of the year we have taken the opportunity to reviewthe framework and our revised Corporate Governance Framework on apage was approved by Annual Council at its meeting held on 23 May 2019.Our revised framework is therefore in place to the date of the approval ofthe Annual Governance Statement and Statement of Accounts.

Governance Framework

Principle A Integrity and Values Principle B Openness and Engagement

A Constitution setting out how the Council operates; how decisions are made and procedures that are followed.

Code of Conduct for Members and local procedures for the investigation of complaints against Members which includes the appointment of two Independent Members who serve on our Standards Committee who advise the Council on Member conduct issues.

An Employee Code of Conduct which makes it clear what standards are expected across the organisation in the performance of their duties.

A Protocol for Councillors with Special Responsibilities and Senior Officers which provides guidance on how the working relationships between Members and Senior Officers should be conducted.

A Register of Member Interests which is published on the Council’s website on individual Member webpages.

Registers of Gifts and Hospitality

Publication of Committee Agendas, Minutes and Decisions.

Webcasting of full Council and Cabinet Meetings.

Monthly publication of the intention to take key decisions via the Executive Leaders Forward Plan of Key Decisions.

A Publication Scheme.

Strategic Partnership Working through the Wakefield Together Executive, Health and Wellbeing Board, Community Safety Partnership, Children and Young People’s Partnership.

Citizen engagement and feedback remains at the heart of the Engagement Framework ie Cabinet on Tour events, our social media accounts including:@mywakefield and WakefieldCouncil on Facebook, YourSay email account, The Citizen newspaper.

Community consultations and engagement.

‘Have Your Say’ staff survey, staff engagement sessions – ‘You Said, We Did’.

Our two overarching principles of good corporate governance are Principle A and B which are then followed by fivePrinciples where effective arrangements need to be in place to deliver good governance. The purple boxes below demonstrate what we do to deliver these principles.

Governance Framework

Principle C Defining Outcomes Principle D Making a Difference Principle E Capacity and Capability

Roles and Responsibilities are clearly defined within the Constitution and Member Officer Protocol.

Councillors are supported in their roles through a comprehensive induction process for newly Elected Members and an ongoing programme of training and development.

Mandatory elements to the Member Development Programme, in 2018/19 these were in relation to Children’s Safeguarding. Mandatory elements are determined by the Member Support and Development Group.

In line with ‘Working for Wakefield, Our People Strategy 2019-2022’ we will ensure our workforce has the necessary skills and behaviours to deliver our vision for the District and the delivery of the Successful Council priority.

Performing for Wakefield taking a holistic, whole system look at performance at organisational and individual levels.

Clear terms and conditions of service are in place and staff are supported by a range of health and wellbeing policies

Flexible working practises in place.

Stakeholders have the opportunity to have their say on a range of key aspects of our budget proposals.

Committee report template includes options considered.

Investment in transformation to ensure the alignment of resources to priority areas , ensure a consistent approach, utilise intelligence to inform change, ensure change is sustainable whilst providing better value for money in the services we offer.

Adoption of a new Procurement Strategy to support the delivery of the Council’s priorities whilst ensuring social value outcomes are embedded into the procurement itself and monitored through the life of the contract. The aim being to provide a wider benefit to the community from each £1 spent on the delivery of services.

Nine enabling strategies which are key to the delivery of the Council’s, Successful Council priority:- Customer, Our People, Medium Term Financial Plan, Accommodation, ICT, Commissioning, Risk Management, Procurement, Commercialisation

Our Vision – The Wakefield District: people thrive, businesses succeed and visitors are welcome’

Design principles that underpin how we work and will challenge our approach each time we make a service change. These are:-We help people help themselvesWe tackle povertyWe are forward thinkingWe intervene earlyWe have a real impactWechampiongood growthWe keep people safe at times of vulnerabilityWe are business minded and socially responsibleWe provide a positive customer experience

Wakefield Clinical Commissioning Group (CCG) and the Council have developed strong partnership arrangements in developing and delivering better, connected care for local citizens including the development of a Wakefield District new Model of Care for a Multi-Speciality Community Provider.

Medium Term Financial Plan and Capital Programme with monthly financial health reports to Cabinet.

‘State of the District’ - Quarterly Performance Monitoring.

Governance Framework

Principle F Managing Risk & Performance Principle G Transparency & Accountability

An enhanced and expanded Internal Audit Function which conforms to PSIAS and reports regularly to the Audit Committee.

A revised Risk Management Framework which is being embedded in policy and planning processes and approved by Cabinet and the Audit Committee.

Comprehensive budget setting and monitoring framework with clearly defined guidelines and responsibilities including the frequent reporting of performance to the Executive.

An Information Governance Policy which is supported by corporate oversight.

A consistent and clear commitment to countering:- fraud and corruption;

We encourage individuals who have concerns with regard to wrong doing within the Council to come forward and report those concerns.

Quarterly performance monitoring reflecting Council priorities to O&S Management Board and Cabinet Members.

Adoption of a revised Corporate Governance Framework which is in line with the CIPFA/SOLACE framework.

An Audit Committee and Standards Committee which includes independent members and oversees the work of Internal and External Audit.

Independent Oversight and challenge provided by our External Auditors, Government Inspectorates and Local Government Ombudsman.

An Overview and Scrutiny function which supports and acts as a critical friend to the Executive (Cabinet).

Arrangements to safeguard our most vulnerable citizens including Independent Chairs of the Safeguarding Boards for Children and Adults.

Member and Senior Management ownership and sign off for the Statement of Accounts and Annual Governance Statement.

Compliance with the Local Government Transparency Code

Setting of a risk-based Annual Audit Plan

Quarterly updates to key stakeholders

Annual Audit Opinion

Internal and external PSIAS assessments

Audit of accounts

VFM conclusion

Grant certification

Information Commissioners Office (ICO)

Information Governance Assurance Report

Senior Information Risk Owner (SIRO)

Whistleblowing Policy

Anti-Fraud and Bribery Policy

Anti-Money Laundering Policy

Financial and Contract Procedure Rules

Risk Management Assurance Report

Strategic Risk Reporting & Directorate Risk Registers

Risk-based Internal Audit reviews

Annual Complaints report including complaints to Local Government Ombudsman

Complaints procedure

Ombudsman investigations

Ofsted Inspections

Care Quality Commission

LGA Peer Review – Health and Care

Health and Safety Executive

Corporate Management Team oversight & strategic planning

Performance Clinics

Annual Assurance Statements

Head of Paid Service

Monitoring Officer – legal assurance, decision making and ethics

Section 151 Officer – Financial administration, audit, risk and compliance

Overview and Scrutiny Annual Report and performance monitoring

Assurance reporting to the Audit Committee

Standards Committee

Health and Wellbeing Board

How the Council monitors and evaluates the effectiveness of its governance arrangements?

The Council annually reviews the effectiveness of its governance framework including the system of internal control. The key sources of assurance that inform this review are outlined below

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Internal Audit External AuditInformation Governance Counter Fraud

Risk Management

Complaints External Reviews Management Statutory Officers Committees

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5. MONITORING THE EFFECTIVENESS OF GOVERNANCEARRANGEMENTS

5.1 The Council has a legal responsibility to conduct an annual review of theeffectiveness of its governance framework, including the systems of internalcontrol. Our review of governance arrangements for 2018/19 has consideredthe following assurance outcomes.

Internal Assurances

A Chief Financial Officer

5.2 Section 151 of the Local Government Act 1972 requires local authorities tomake arrangements for the proper administration of their financial affairs andappoint a Chief Financial Officer to have responsibility for thosearrangements. The Chief Finance Officer submitted a report to AuditCommittee (25 February 2019) which provided positive assurances aroundthe Council’s overall financial control environment and that the financialcontrol and financial governance arrangements that are in place were fit forpurpose and embedded across the organisation.

5.3 The Chartered Institute of Public Finance and Accountancy (CIPFA) sets outthe role of the Chief Financial Officer in local government in its statementwhich was updated in April 2016. This statement sets how the requirementsof legislation and professional standards should be fulfilled by Chief FinancialOfficers in the carrying out of their role. In line with the Chief Finance Officerprotocol, The Chief Finance Officer has reviewed the Chief Finance OfficerProtocol and confirmed in the assurance report that there are no amendmentsneeded, and furthermore that the requirements and expectations as set out inthe protocol have been complied with.Annual Assurance Report on the Financial Control Environment and Compliance with the CFO Protocol

B The annual opinion of the Service Manager Internal Audit on theadequacy of internal control arrangements based on theoutcomes of individual audit reviews.

5.4 The Public Sector Internal Audit Standards (PSIAS) requires the Chief AuditExecutive (Service Manager for Internal Audit and Risk) to establish riskbased plans to determine the priorities of the internal audit activity, consistentwith the organisation’s goals. At its meeting held on 9 th April, Audit Committeeapproved the Internal Audit Plan which contributed towards the AuditCommittee’s assurances that key financial systems are operating as intendedand that controls to mitigate key risks are effective and efficient.Internal Audit Plan 2019/20

5.5 The results of internal audit work were reported to the Audit Committeethroughout the course of the year and the Annual Internal Audit Opinion on theoverall adequacy and effectiveness of the Council’s governance, risk andcontrol framework is:-

5.6 The opinion for 2018/19 opinion is:

“From the Internal Audit Work completed during 2018/19, the internal controlenvironment (including the key financial systems, risk management andgovernance arrangements) is satisfactory and operating effectively in practice. The outcomes from our audit work have been reported to relevant key contactsand to this Committee during 2018/19.

This opinion reflects that the 2018/19 Audit Plan was risk-based, providingsufficient breadth and depth audit coverage. There were 34 audit reportswhere a formal assurance opinion has been provided. Of these 9 had anopinion of ‘fully effective’ and a further 17 had an opinion of ‘mostly effective ormostly implemented’, meaning 76.5% of our assurance reports have providedpositive assurance on the robustness of risk management and governancearrangements, and the effectiveness of the control environment.

There were 8 audits where an opinion of ‘partially effective or partiallyimplemented’ has been provided, and we have highlighted weaknesses thatmay present a risk to the Council. Although significant to the controlenvironment in place for the individual areas reviewed, the weaknesses are not,in my professional opinion, material enough to have a significant impact on theoverall Audit Opinion. Follow-up audits have been scheduled into the InternalAudit Plan for 2019/20”.

C Risk Management Assurance

5.7 As an organisation we are committed to ensuring that we have robust riskmanagement arrangements. This will help us mitigate threats and make themost of opportunities that present themselves. As part of this commitment theCouncil benchmarked itself against current risk management good practice.An outcome of this was the approval of a new Risk Management Frameworkand Policy by Cabinet on the 6th November 2018. This Framework definesthe Council’s risk management vision and sets out the strategic frameworkunder which risk management operates.Revised Risk Management Framework for Wakefield Counci l

5.8 We recognise that further work is required to embed the new RiskManagement Framework within the Council, and this is a key element of ourcurrent Risk Management Strategy. During 2018/19, the focus was on thoserisks that had been assessed as the most significant to the Council.

5.9 An annual assessment of our risk management arrangements is undertakenthrough the production of an Annual Assurance Statement. For 2018/19 weassessed the arrangements of being “effective”. The statement was presentedto and approved by Audit Committee on 8th April 2019. The statementidentifies the assurances currently in place along with any proposeddevelopments and improvements.Annual Assurance Report on Risk Management Arrangements

D Anti-Fraud and Bribery

5.10 The Service Manager for Internal Audit and Risk undertook a presentation tothe Audit Committee (19 November 2018) to raise awareness of the differenttypes of fraud affecting local government, factors that contribute towardspeople committing fraud, current recommended good practice, WakefieldCouncil’s governance arrangements to mitigate the risk and Internal Audit’s role.Mitigating the Risk of Fraud at Wakefield Council

5.11 The Audit and Governance Committee at its meeting held on 17 June 2019received an assurance report following a review of the Anti-MoneyLaundering and Anti- Bribery policies. Anti-Money Laundering, Anti-Fraud and Bribery Policies

The report concluded that ‘The Council’s arrangements for tackling bribery,corruption and fraud overall were adequate. Plans were in place tostrengthen these over the next twelve months and progress will be reportedback to the Committee.’

E Annual Governance Assurance Statement (AAS) returns fromService Directors/ Managers and Financial Assurance Statementsfrom Group Finance Managers.

5.12 As in previous years’ Service Managers from across the Council completed aself-assessment questionnaire identifying strengths and weaknesses withintheir services internal control environment. Where areas of improvement areidentified, these will be referenced and improvement actions put in place withsignificant issues referenced in the Annual Governance Statement.

5.13 The questionnaires sought assurance on a number of key areas and this yearadditional questions were included around safeguarding and corporateparenting. The questionnaire also sought to ascertain whether BusinessImpact Analysis had been undertaken, and where ‘critical’ activities had beenidentified that effective business continuity arrangements were in place. Theoutcomes arising from the exercise were shared with Directorate ManagementTeams.

F Procurement

5.14 Audit Committee at its meeting held on 8 April 2019 received an assurancereport on the Council’s Procurement practices, policies and strategy. Thecontrols as laid out in the Council’s Contract Procedure Rules ensurecompliance with the Council’s statutory obligations laid out in Public ContractRegulations 2015 and other applicable legislation Procurement Assurance Report

G Strategic and Corporate Asset Management Plan (SCAMP) (including the Property and Asset Investment Portfolio)

5.15 Cabinet at its meeting held on the 4 th December 2018 received an update onthe progress of the SCAMP whilst approving an increase in the Council’s

commercial property and asset investment portfolio alongside the resultantgovernance arrangements, strategic investment criteria, risk managementand the financial implications. SCAMP

External Assurances

H Annual Audit of the Council undertaken by the External Auditor 2017/18

5.16 Audit Committee (23 July 2018) received the key findings in relation toKPMG’s 2017/18 external audit of the Council which covered both on-sitework assessing the Council’s significant risk areas as well as other areas inthe financial statements and the control environment which supported theproduction of timely and accurate financial statements.External Audit ISA260 Report 2017/18

5.17 At its meeting on 17 September 2018, Audit Committee received the AnnualAudit Letter which confirmed that the External Auditor had issued anunqualified opinion on the Authority’s financial statements, confirmed that theWhole of Government Accounts was consistent with the audited financialstatements and issued a qualified opinion on the Authority’s arrangements tosecure value for money and confirmed that with the exception of Children’sServices, the Authority had put in place proper arrangements to secureeconomy, efficiency and effectiveness in its use of resources.Annual Audit Letter 2017/18

I Proposals for the 2018/19 Annual Audit of the Council to be undertaken by Deloitte

5.18 At its meeting held on 25th February 2019 the Audit Committee receivedDeloitte’s plan for reviewing the Council’s annual statement of accounts andassessing its arrangements to secure value for money in the use of resources.The report outlined the risk based approach to the audit and the main risksidentified for 2018/19, those being the Council’s financial resilience and thefindings of the Ofsted inspection of Children’s Services in June 2018alongside four areas where there was a significant risk of materialmisstatement which would be focussed upon during the audit. These were:property valuations; pension liabilities; completeness and cut off of service lineexpenditure; and management override of controls.Deloitte – Planning report to the Audit Committee for the year ending 31 March 2019

J Consideration of any determinations by the Ombudsman.

5.19 At its meeting held on 8th October 2018 Cabinet received the AnnualComplaints report. During the reporting period 2018-19, the LocalGovernment and Social Care Ombudsman considered 42 complaints andenquiries about the Council, 48% fewer than the previous year. Of these, theOmbudsman carried out 28 detailed investigations. 23 (82%) were notupheld and 5 (18%) were upheld. Ombudsman decisions are shared with

Corporate Directors and Service Directors to determine how learning isshared corporately. Annual Complaints Report

K Care Quality Commission

5.20 The Care Quality Commission (CQC) is the independent regulator of healthand adult social care services across England – aiming to ensure health andsocial care services provide people with safe, effective, compassionate andhigh quality care, and encouraging care services to improve where necessary.As the regulator, the CQC produce reports based on their inspection processfor care providers in a range of setting, including residential and nursinghomes across the District. The Adult Services, Public Health and the NHSOverview and Scrutiny Committee continues to monitor the quality of careacross the District and support the drive in care quality. Officers have attendedthe Committee to answer questions from Members and provide assurance onimprovement actions. The Chair of the Committee also meets by-monthly withthe Cabinet Member and Corporate Director to seek assurance regarding reportsthat relate to Adult Social Care. Adult Services, Public Health and the NHS O&S Committee

L Standard inspection by Ofsted under the Inspection of Local Authority's Children's Services (ILACS) Framework

5.21 In June 2018 Ofsted undertook an inspection of Children’s Social CareServices. The inspection covered the whole range of social care servicesprovided by the Council to children and young people living within theDistrict. The Ofsted report, published on 17th July 2018, rated our service‘inadequate. The Council’s response to the inspection is set out in section 6of the Statement.

M LGA Peer Challenge

5.22 An LGA Peer Challenge focusing on Health and Care was conducted inOctober 2018. The recommendations emanating from the review sought tocomplement and add value to system performance with many significantstrengths and opportunities to be built upon whilst guiding future developmentand transformational approaches.

N Cyber Security

5.23 The Council remains in a strong position in respect of Cyber Security ensuringthat the Council’s digital estate remains as secure as possible due to itsrigorous approach in upgrading our defences through testing works. TheLocal Government Association Cyber Security Stock Take wasundertaken in October 2018. The Council achieved an ‘amber/green’ overallassessment. Having assessed the aggregate data Wakefield was one of 33%of Council’s nationally who received the ‘amber/green’ rating. 4% of Council’s

achieved the ‘green’ rating with the majority assessed ‘amber’. The Councilalso undertook the annual Cyber Essentials Plus exercise in November2018 achieving the award. This award demonstrates good practise havingtested system resilience. Cyber Essential Plus helps organisations guardagainst the most common cyber threats and demonstrates a clearcommitment to cyber security. The Council is also a member of the Yorkshireand Humber IT Security Group whereby best practise can be sharedregionally. The Council is not complacent however and will continue toundertake rigorous testing in the year ahead to ensure that the Council’sdigital estate remains as secure as possible

6. SIGNIFICANT GOVERNANCE CHALLENGES IN 2018/19

6.1 Whilst our organisational control environment is effective overall we havefaced a number of significant challenges which have impacted on ourgovernance arrangements and how we operate as a provider of publicservices.

Financial Pressures

6.2 The financial environment within which the public sector is currently operating,and local government in particular, is significantly challenging with the 2018/19financial year being the eighth year of Government austerity. Since 2010, localauthority funding has been transformed, both in terms of the severity of thereductions in funding available to deliver services and also in the way in whichthat funding has been allocated and consequently impacting on local authorityfinancial risk profiles. .

6.3 Between 2011/12 and 2017/18 local government has sustained significantreduction in total funding. During this period the Council’s core funding fromGovernment reduced by a total of £170m with a further budget challenge of£28m in the 2018/19 financial year. In addition to this we have facedsignificant demand-led pressures particularly with regard to services for AdultSocial Care and Children’s Safeguarding. In spite of these challenges, theCouncil was able to deliver a balanced budget for the 2018/19 financial year.

6.4 In the longer-term, the Council’s financial position beyond March 2020continues to be uncertain. The impact of the Government’s Fair FundingReview, the introduction of 75% business rates retention, the potential impactof leaving the European Union as well as sustainable and uncertain fundingfor health and social care all make it extremely difficult for the Council to planeffectively and inevitably shortens our financial and service planning horizons.

6.5 Whilst the Council has to date responded successfully to these financialchallenges, it is important that the Council maintains a robust Medium-TermFinancial Plan which forms a key part of our financial planning and financialresilience. The priority for the Council’s budget strategy has been, andremains to be, to protect wherever possible front-line services particularly

those services that support the most vulnerable across the District.Unfortunately, given the significant reductions in funding, it has beenimpossible to shield the impact of managing these reductions from residents.The impact of continuing austerity and reductions in funding in 2019/20 willundoubtedly mean that the Council will have to make difficult decisions.

6.6 The Council’s values will continue to underpin how we work and as ourorganisation evolves so our engagement with our partners, to deliver servicesto meet the need and improve the well-being of our citizen’s, becomes moreextensive. Ensuring our values and good governance are rooted in thosearrangements, particularly how we commission services and monitoroutcomes, will continue to be a challenge in the years ahead. The ability of theCouncil however to shape the District in a way that positively supportsresidents and businesses remains significant and through our budget planningprocess we will ensure that our resources are utilised to deliver the bestservices possible, responding to the views of residents and stakeholders andto support all residents to improve living standards and avoid the trap of lowincome, debt and the insecurity of ‘life on the edge’. The Council has in placeperformance, financial and risk management frameworks that are embeddedacross the organisation and acknowledged as good practice by externalassessors. These arrangements are subject to continuous review,improvement and externally audited to make sure that they are effective andmeet the needs of the organisation.

Demand Pressures

6.7 We face increasing demand pressures on both Adult Social Care and Children’sServices. The 2019/20 budget includes additional net provision reflecting thecontinuing increases in the number of residential placements for older people,more specialist placements for service users with learning disabilities and alsoincreasing numbers of supported living and other non- residential care. TheCouncil is working closely with the Wakefield Clinical Commissioning Group(CCG) to develop improved and better integrated health and social careservices for local people alongside strengthening the governance arrangementssupporting the integration programme. Moving towards the further integration ofhealth and social care across the District will provide opportunities to improvethe quality of services whilst maximising the resources the District has availableto develop an improved integrated care model.

6.8 To continue to support the rapid transformation and improvement withinChildren’s Services, and in recognition of continuing demand and inflationarypressures, significant additional investment has been included in the 2019/20Budget.

Poverty

6.9 The Council’s vision is to provide a District where people thrive, businessessucceed and visitors are welcome. A key element of this is supporting peopleto be successful by reducing inequalities, growing skill levels and tackling

poverty. Understanding more about poverty and how it impacts Wakefieldresidents will help the Council be aware of how to support residents to exitpoverty as well as reduce and mitigate any negative impacts on them. FullCouncil at its meeting held on 20th March 2019 received a report whichprovided information about the services and activities that the Council offersand provides to help reduce poverty in the District. Poverty in Wakefield A keychallenge is to understand which of our existing activities are the mosteffective; which of the three categories of Prevention, Mitigation and Exit havethe most impact and what new work, if any, we can undertake.

Children's Services - Ofsted

6.10 The significant challenge faced by the Council in 2018 /19 was its response tothe two Ofsted inspections the first being the focused visit in relation to theCouncil’s ‘Front Door’ Arrangements for Children’s Services in February 2018with a further Standard Inspection of Children’s Social Services in June 2018which rated our service to be ‘inadequate’. Whilst the June inspectionrecognised that improvements had been made there remained “significantweaknesses”. The report set out in detail where the Council needed toimprove and whilst making difficult reading the findings confirmed that thefailures found in the in the earlier February focussed visit letter werewidespread across all the services. Actions to address the areas forimprovement have continued at a pace with the changes being implementedseeking to make a real difference to each and every child and family whichneed the Council’s support.

6.11 An Improvement Plan, developed with partner agencies and other regionallocal authorities, was agreed. A Partnership Improvement Board wasestablished to ensure that the Council made rapid progress against theImprovement Plan with partners holding each other to account for services tochildren and young people in the District. The Plan has been closelymonitored by the Leader of the Council and Chief Executive alongside theDepartment for Education who assigned a Commissioner tasked withproducing a diagnostic report and to make recommendations to the Ministerabout what should happen next. On his appointment in August, theCommissioner reviewed the ability of the Council to make the requiredimprovements in Children’s Services and to do so in a reasonable timeframe.

6.12 When reporting his findings back to the Secretary of State, the Commissionerrecognised that Wakefield had “responded robustly and at considerable pace”to the challenges it faced; and that it was on “a very complex and challengingimprovement journey”.

6.13 In view of the ongoing improvement work, the Commissioner concluded thatan Alternative Delivery Model would serve little purpose and would more likelybe disruptive to the current improvement programme. The Commissionertherefore recommended that:

Children’s Services remain in the control of the Council. The Commissioner be appointed for a further twelve months to enable

a review of progress to be undertaken in six and twelve months’ time. The Independent Chair of the Improvement Board provides quarterly

reports to the Minister. The Commissioner continues to receive papers but does not attend

the Improvement Board meetings.

6.14 The recommendations were accepted by the Secretary of State and a reviseddirection has been issued to the Council in line with the above.

6.15 Throughout the year the Audit Committee has sought regular assurance onthe Council’s key strategic risk in relation to Children’s Safeguarding – ‘Failureto effectively comply with legislation or regulations relating to theSafeguarding of children and young people’. The Corporate Director, Childrenand Young People updated the Committee in July, November and April on theImprovement Programme and the ongoing work which is being undertakenacross the Council to manage the strategic risk. Progress has also beenmonitored through the Annual Governance Statement Action Plan 2018/19which will continue in 2019/20.

6.16 Alongside Cabinet and Audit Committee oversight the Improvement Plan hasalso been closely monitored by the Children, Young People and SkillsOverview and Scrutiny Committee. The Corporate Director, Children andYoung People, has regularly attended Committee meetings which has beeninvaluable in keeping Members informed of the actions being taken toaddress the Ofsted findings and the level of progress achieved; as wellenabling the Committee to question and challenge.

6.17 Annual Council approved the creation of a Corporate Parenting Committee tolead its corporate parenting responsibilities and to improve services andoutcomes for children and care leavers, for whom the Council is corporateparent. The creation of the Committee placed corporate parenting as anintegral element of the Council’s governance arrangements. The Committeewill also provide a forum through which looked after children and youngpeople can hold the Council to account as their corporate parent.

6.18 The Improvement Board once satisfied that individual programmes areachieving a significant and sustained impact and alongside externalstakeholders are satisfied that improvements are embedded, a process byway of handover of completed projects to business as usual governance

arrangements has been agreed. The Chairs of the Children, Young Peopleand Skills Overview and Scrutiny Committee and Corporate ParentingCommittee have discussed with the Corporate Director the most appropriateforum to assume responsibility for ongoing monitoring and assurance.

Children and Young People

6.19 A key challenge during the year was maintaining a strategic leadership role forthe Council in the context of national policy in relation to schools and thereducing roles of local authorities. The Council has a statutory responsibility toensure the provision of good quality learning places and to secure anappropriate balance between education supply, demand, choice and diversity.The Council’s relationship with individual schools is therefore crucial and it isvital that those relationships remain strong and effective in what continues tobe a rapidly evolving governance and accountability landscape.

Information Governance

6.20 We will need to be able to demonstrate that we have put in place appropriatetechnical and organisational measures, to ensure and to demonstratecompliance with all aspects of the General Data Protection Regulation. All ofthese processes will be monitored and audited to ensure on-goingeffectiveness. These more exacting requirements mean we will need to keepunder review our approach to governance, and how data protection complianceis managed as a corporate issue. Analysis of the risk posed to the Council asreported to the Audit Committee on 8th April 2019 identified that appropriatetechnical measures are in place but work is required on organisation measures;particularly awareness raising and training.

Audit Committee

6.21 Audit Committee during the course of the year took the opportunity toreview its effectiveness by completing the CIPFA Self-Assessment of GoodPractice questionnaire. The completed questionnaire in assessing theeffectiveness of the Committee identified where further improvements couldbe made thereby improving its overall effectiveness. An Action Plan wasagreed with revised terms of reference approved by Annual Council at itsmeeting held on 23 May 2019. Self-Assessment of Good Practice – Action Plan A number ofthe actions as set out in the self-assessment action plan will be progressedwithin the Governance Action Plan which accompanies this Statement.

Technology Strategy

6.22 A gap analysis reviewing the Council’s Information Technology function(ICT) identified that when compared to benchmarking, whilst the functionachieved a high level of customer satisfaction, and in the main delivered aquality service it was not currently achieving its true potential. The challenge

was therefore for the service to operate a higher level of maturity in order tosupport the Council to achieve truly transformational change. Cabinet at itsmeeting held on 2 April 2019 approved a new Technology Strategy and futureroad map with the vision being that by March 2023 the Council is recognisedas a centre of excellence for technological innovation that creates a positivecustomer experience. The new Technology Strategy will directly underpin theCouncil’s existing Customer Experience and Digital Strategies by ensuring thedelivery of a modern infrastructure and creating an embedded internal digitalcapability thus freeing up staff to positively impact the people of Wakefield. Asthe Council seeks to move from current to the future state this will need to beunderpinned by robust governance arrangements to achieve the vision that‘Technology Transforms’.

Overview and Scrutiny

6.23 The role that Overview and Scrutiny can play in holding an authority’sdecision-makers to account makes it fundamentally important to thesuccessful functioning of local democracy. Effective scrutiny helps secure theefficient delivery of public services and drives improvements within theauthority itself. Conversely, poor scrutiny can be indicative of widergovernance, leadership and service failure. The Ministry for Housing,Communities and Local Government issued statutory guidance on overviewand scrutiny in local government on 7th May 2019. A self-assessment will beundertaken against the new guidance with a view to implementing anyrequired actions.

CIPFA Financial Management Code

6.24 The Chartered Institute of Public Finance and Accountancy (CIPFA)recently consulted on a new Financial Management Code which sets out thestandards of financial management for local authorities. Local authorities arerequired to apply the code from April 2020 which means that to enable the2020/21 budget to have been prepared in line with the Code significantelements will need to be adopted before April 2020. An assessment is beingundertaken by the Chief Finance Officer and implementation will be monitoredvia the Governance Action Plan.

Equality and Diversity

6.25 The Council’s current equality and diversity areas of focus were lastreviewed and updated in 2015 and as such there is a need to assess whetherequality, diversity and inclusion awareness has been fully mainstreamedacross the Council. Alongside this, it is opportune to identify whether theCouncil has fully embedded equality and diversity thinking into day to daycorporate service planning and delivery. A review of internal and external

engagement, including with local partners through the Wakefield TogetherCohesion Group, is to be undertaken to identify a set of priorities and areas offocus for 2019/22. This will be monitored through the Governance Action Plan.

7. GOVERNANCE ACTION PLAN

7.1 Whilst recognising our improvements to date, the emphasis going forward isto address identified issues and to put in place improvement actions to notonly address those areas of concern but also seeking to embrace continualimprovement to areas where there are no issues. A Governance Action Plan,attached at Appendix A, provides a summary of actions we will be addressingduring 2019/20. We have made good progress in implementing the actionsfrom 2018/19 as reported to the Audit Committee with all outstanding issuesbeing carried forward into the 2019/20 Action Plan.

7.2 Over the coming year we will take steps to address the matters identified inthe Governance Action Plan to further enhance our governancearrangements. We are satisfied that these steps will address the need forimprovements that were identified in our review of effectiveness and willmonitor their implementation and operation as part of our next annual reviewand through regular updates to the Audit Committee.

8. CONCLUSION

8.1 Good governance is about running things properly which means the Councildemonstrating that it is taking decisions for the good of the District’s people ina fair, equitable and open way. It also requires standards of behaviour thatsupport good decision making, collective and individual integrity, opennessand honesty. Good governance is the foundation for the delivery of goodquality services that not only meet the needs of local people but isfundamental to showing that public money is well spent. Without goodgovernance, Councils will struggle to improve services.

8.2 The Council’s governance and risk management arrangements enable it todeal openly and effectively with situations such as those highlighted. Thenature of the organisation means that there will always be difficult situations todeal with, but its internal control mechanisms ensure that actions are takenappropriately and promptly, and it is openly accountable for those actions.

9. OPINION

9.1 After conducting a review of the governance arrangements across the Counciland overall compliance with the Council’s Corporate Governance Frameworkwe are satisfied that Wakefield MDC’s internal control and corporategovernance arrangements are adequate and are operating effectively. Weare satisfied that the enhancements identified will further improve ourgovernance and internal control arrangements. The Audit and GovernanceCommittee will assess their implementation and the effectiveness of dealing

with the issues identified. We have therefore reached the opinion that, overall,key systems are operating soundly and there are no fundamental controlweaknesses and that to the best of our knowledge and belief, this statementprovides an accurate and fair view.

Councillor Peter Box CBE Merran McRaeLeader of the Council Chief Executive of the Council