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Code of Corporate Governance

  1. 1. Document history and introduction
  2. 2. Principle 1, 2 and 3
  3. 3. Principle 4 and 5
  4. 4. Principle 6 and 7

4. Principle 6 and 7

Principle 6

Principle 6 - Managing risks and performance through robust internal control and strong public financial management.

Local government needs to ensure that the organisations and governance structures that it oversees have implemented, and can sustain, an effective performance management system that facilitates effective and efficient delivery of planned services. Risk management and internal control are important and integral parts of a performance management system and are crucial to the achievement of outcomes. Risk should be considered and addressed as part of all decision-making activities.

A strong system of financial management is essential for the implementation of policies and the achievement of intended outcomes, as it will enforce financial discipline, strategic allocation of resources, efficient service delivery and accountability. It is also essential that a culture and structure for scrutiny are in place as a key part of accountable decision-making, policy making and review. A positive working culture that accepts, promotes and encourages constructive challenge is critical to successful scrutiny and successful service delivery. Importantly, this culture does not happen automatically, it requires repeated public commitment from those in authority.

Supporting principles To achieve this, the Council will:
Managing risk
  • Recognise that risk management is an integral part of all activities and must be considered in all aspects of decision making.
  • Implement robust and integrated risk management arrangements and ensure that they are working effectively.
  • Ensure that responsibilities for managing individual risks are clearly allocated.

Managing performance
  • Monitor service delivery effectively including planning, specification, execution and independent post implementation review.
  • Make decisions based on relevant, clear objective analysis and advice pointing out the implications and risks inherent in the organisation’s financial, social and environmental position and outlook.
  • Ensure an effective scrutiny or oversight function is in place which provides constructive challenge and debate on policies and objectives before, during and after decisions are made thereby enhancing the organisation’s performance and that of any organisation for which it is responsible.
  • Provide members and senior management with regular reports on service delivery plans and on progress towards outcome achievement.
  • Ensure there is consistency between specification stages (such as budgets) and post implementation reporting (for example financial statements).

Robust internal control
  • Align the risk management strategy and policies on internal control with achieving objectives.
  • Evaluate and monitor risk management and internal control on a regular basis.
  • Ensure effective counter fraud and anti-corruption arrangements are in place.
  • Ensure additional assurance on the overall adequacy and effectiveness of the framework of governance, risk management and control is provided by the internal auditor.
  • Ensure an audit committee or equivalent group/ function, which is independent of the executive and accountable to the Council:
    • provides a further source of effective assurance regarding arrangements for managing risk and maintaining an effective control environment.
    • that its recommendations are listened to and acted upon.

Managing data
  • Ensure effective arrangements are in place for the safe collection, storage, use and sharing of data, including processes to safeguard personal data.
  • Ensure effective arrangements are in place and operating effectively when sharing data with other bodies.
  • Review and audit regularly the quality and accuracy of data used in decision making and performance monitoring.

Strong public financial management
  • Ensure financial management supports both long term achievement of outcomes and short term financial and operational performance.
  • Ensure well developed financial management is integrated at all levels of planning and control including management of financial risks and controls.

Principle 6 is evidenced by:

  • The Annual budget (2024/25) ensures that the council meets its legal responsibilities for sound financial management, whilst enabling the Council to align funding of local services and projects over the forthcoming year to meet its Corporate Plan objectives and statutory duties. Public consultation is undertaken as part of the budget process to reflect the views and priorities of residents and local stakeholders in the Council’s spending plans.
  • The Annual Governance Statement 2023/24 reports publicly on the extent to which the Councils complies with this Code of Corporate Governance. It therefore provides a mechanism for reporting on the health of the Council’s governance arrangements, providing assurance and highlighting where improvement is needed.
  • The Annual Statement of Accounts ensures that the Council presents a true and fair view of its financial position, including a statement of income and expenditure, cash flow, use of reserves, and balance sheet at the end of the financial year.
  • The Anti-Money Laundering Policy enables the Council to meet its statutory obligations to prevent and identify money laundering; and, to assist officers in dealing with instances of money laundering.
  • Business Continuity Plans (Internal) support the Council’s response to any incident that impacts on the Council’s ability to provide key services. It links in closely with the Council’s Corporate Business Continuity Plan, which details the Council’s overall corporate response and recovery.
  • The Capital Investment Strategy and Capital Programme provides a mechanism by which investment and financing plans can be prioritised, ensuring that capital decisions contribute to the achievement of the Council’s Corporate Plan priorities, and take account of stewardship, value for money, prudence, sustainability, affordability, and risks.
  • The Commercial Strategy ensures that the Council’s commercial activity is ethical, and consistent with the Council’s statutory responsibility to promote economic, environmental and social wellbeing in the borough, and our corporate objectives. It also requires that there is appropriate due diligence and risk assessment of investment options; and, that surplus income generated through our commercial activities will be used to ensure the financial sustainability of the Council and continued delivery of services for local people.
  • The Constitution sets out how the Council operates, how decisions are made and the procedures that are in place to ensure decisions are efficient, transparent, and accountable to local people.
  • The Corporate Complaints Procedure enables customers to express dissatisfaction about the standard of a service, actions or lack of actions by the Council; and, ensures complaints are investigated, resolved, and learnt from. Corporate complaints performance is reported to the Corporate Governance Group, Group Leaders, and Overview and Scrutiny Committee.
  • The Corporate Plan (‘Reigate & Banstead 2025’) explains the Council’s priorities for the next five years and how we will deliver services to those living, working and spending time in our borough. This includes things like how we will deliver leisure and housing services, neighbourhood services (including parks and refuse collection), our plans to tackle climate change and how we will support our towns, villages, and local businesses.
  • The Counter Fraud, Corruption and Bribery Statement sets out the high-level priorities that must be met to achieve the Councils’ zero tolerance’ towards corruption, fraud and bribery and set out its approach for dealing with the threat or subsequent incidence of fraud and bribery from both internal and external sources.
  • The Financial Sustainability Programme aims to reduce the Council’s reliance on one-off measures, such as the use of Reserves, to fund services in the long-term. It focusses on four key areas to achieve this, including income generation, use of assets, prioritisation of resources, and achieving value for money.
  • The Health and Safety Policy (Internal) aims to protect the wellbeing of employees, contractors, and the public by implementing legal standards, managing risks, and following best practice in maintaining a safe working environment.
  • The ICT Code of Practice (Internal) ensures the appropriate and secure use of ICT resources, systems, and data by staff and Members of the Council.
  • The Internal Audit Plan 2024/25 provides independent and objective assurance that the Council’s systems and processes are appropriate, operating effectively and provide sufficient control for the purposes of risk management, internal control and governance.
  • Key Performance Indicators are reported by the senior management to the Executive, Audit, and the Overview and Scrutiny Committee on a quarterly basis to measure the progress of key areas of work against targets/objectives, to highlight areas for improvement, and thus improve outcomes for stakeholders, such as residents, businesses and local communities.
  • The Medium-Term Financial Plan (MTFP) 2021/22 – 2025/26 provides a framework for managing council finances, aligning spending with strategic priorities, and addressing funding challenges. It ensures a balanced budget, maintains reserves, supports prudent investment, and promotes financial sustainability through income generation, collaboration, and value for money in service delivery.
  • The Overview and Scrutiny Committee aims to develop and review policy and make recommendations to the Executive and Council. It has the power to ‘call-in’ decisions made by Executive Members, Committees and officers for further review if they do not follow the decision-making principles of the Council’s Constitution, or if they are outside the budget and policy framework.
  • The Register of Gifts and Hospitality lists all declarations by Members and officers who received gifts or hospitality over the value of £25, as required under the Council’s Code of Conduct, Financial Procedure Rules, and Localism Act 2011.
  • The Register of Interests is an open and transparent record of all interests declared by Members of the Council in accordance with the Council’s Code of Conduct and the Localism Act 2011. This ensures the integrity of the decision-making process, by making decision-makers publicly accountable for managing any potential or perceived conflicts of interest in accordance with the Council’s Code of Conduct.
  • The Risk Management Strategy explains how the Council identifies, assesses, manages and reports on the risks that it faces in delivering its objectives. It integrates risk management into council operations, promoting informed decisions, early problem detection, and a culture of risk awareness. It ensures best practices, anticipates changes, and minimises loss and disruption.
  • The Standards Committee helps to promote and maintain the highest standards of conduct amongst members of the Council, and ensures that Councillors act in accordance with the Council’s Code of Conduct.
  • The Treasury Management Strategy (2024/25) explains the Council’s approach to management of cash flows, borrowing and investments, and the associated risks.

Principle 7

Principle 7 - Implementing good practices in transparency, reporting, and audit, to deliver effective accountability.

Accountability is about ensuring that those making decisions and delivering services are answerable for them. Effective accountability is concerned not only with reporting on actions completed, but also ensuring that stakeholders are able to understand and respond as the organisation plans and carries out its activities in a transparent manner. Both external and internal audit contribute to effective accountability.

Supporting principles To achieve this the Council will:
Implementing good practice in transparency
  • Write and communicate reports for the public and other stakeholders in a fair, balanced and understandable style appropriate to the intended audience and ensure that they are easy to access and interrogate
  • Strike a balance between providing the right amount of information to satisfy transparency demands and enhance public scrutiny while not being too onerous to provide and for users to understand
Implementing good practices in reporting
  • Report at least annually on performance, value for money and stewardship of resources to stakeholders in a timely and understandable way
  • Ensure members and senior management own the results reported
  • Ensure robust arrangements for assessing the extent to which the principles contained in this framework have been applied and publishing the results on this assessment, including an action plan for improvement and evidence to demonstrate good governance (the annual governance statement)
  • Ensure that this framework is applied to jointly managed or shared service organisations as appropriate
  • Ensure the performance information that accompanies the financial statements is prepared on a consistent and timely basis and the statements allow for comparison with other similar organisations
Assurance and effective accountability
  • Ensure that recommendations for corrective action made by external audit are acted upon
  • Ensure an effective internal audit service with direct access to members is in place, providing assurance with regard to governance arrangements and that recommendations are acted upon
  • Welcoming to peer challenge, reviews and inspections from regulatory bodies and implementing recommendations
  • Gain assurance on risks associated with delivering services through third parties and that this is evidenced in the annual governance statement
  • Ensure that when working in partnership, arrangements for accountability are clear and the need for wider public accountability has been recognised and met

Principle 7 is evidenced by:

  • The Annual budget (2024/25) ensures that the council meets its legal responsibilities for sound financial management, whilst enabling the Council to align funding of local services and projects over the forthcoming year to meet its Corporate Plan objectives and statutory duties. Public consultation is undertaken as part of the budget process to reflect the views and priorities of residents and local stakeholders in the Council’s spending plans.
  • The Annual Governance Statement 2023/24 reports publicly on the extent to which the Councils complies with this Code of Corporate Governance. It therefore provides a mechanism for reporting on the health of the Council’s governance arrangements, providing assurance and highlighting where improvement is needed.
  • The Annual Statement of Accounts ensures that the Council presents a true and fair view of its financial position, including a statement of income and expenditure, cash flow, use of reserves, and balance sheet at the end of the financial year.
  • The Capital Investment Strategy and Capital Programme provides a mechanism by which investment and financing plans can be prioritised, ensuring that capital decisions contribute to the achievement of the Council’s Corporate Plan priorities, and take account of stewardship, value for money, prudence, sustainability, affordability, and risks.
  • The Commercial Strategy ensures that the Council’s commercial activity is ethical, and consistent with the Council’s statutory responsibility to promote economic, environmental and social wellbeing in the borough, and our corporate objectives. It also requires that there is appropriate due diligence and risk assessment of investment options; and, that surplus income generated through our commercial activities will be used to ensure the financial sustainability of the Council and continued delivery of services for local people.
  • The Constitution sets out how the Council operates, how decisions are made and the procedures that are in place to ensure decisions are efficient, transparent, and accountable to local people.
  • The Corporate Complaints Procedure enables customers to express dissatisfaction about the standard of a service, actions or lack of actions by the Council; and, ensures complaints are investigated, resolved, and learnt from. Corporate complaints performance is reported to the Corporate Governance Group, Group Leaders, and Overview and Scrutiny Committee.
  • The Corporate Plan (‘Reigate & Banstead 2025’) explains the Council’s priorities for the next five years and how we will deliver services to those living, working and spending time in our borough. This includes things like how we will deliver leisure and housing services, neighbourhood services (including parks and refuse collection), our plans to tackle climate change and how we will support our towns, villages, and local businesses.
  • The Financial Sustainability Programme aims to reduce the Council’s reliance on one-off measures, such as the use of Reserves, to fund services in the long-term. It focusses on four key areas to achieve this, including income generation, use of assets, prioritisation of resources, and achieving value for money.
  • The Internal Audit Plan 2024/25 provides independent and objective assurance that the Council’s systems and processes are appropriate, operating effectively and provide sufficient control for the purposes of risk management, internal control and governance.
  • Key Performance Indicators are reported by the senior management to the Executive, Audit, and the Overview and Scrutiny Committee on a quarterly basis to measure the progress of key areas of work against targets/objectives, to highlight areas for improvement, and thus improve outcomes for stakeholders, such as residents, businesses and local communities.
  • The Medium-Term Financial Plan (MTFP) 2021/22 – 2025/26 provides a framework for managing council finances, aligning spending with strategic priorities, and addressing funding challenges. It ensures a balanced budget, maintains reserves, supports prudent investment, and promotes financial sustainability through income generation, collaboration, and value for money in service delivery.
  • The ‘Notice of Key Decisions and Corporate Forward Plan’ (CFP) gives 28 days’ statutory notice of forthcoming Executive key decisions, in addition to other non-key business for Audit, Overview and Scrutiny, and Full Council meetings. The CFP ensures that public notice is given for forthcoming decisions in an open and transparent way, and supports the efficient coordination of committee business.
  • The Overview and Scrutiny Committee aims to develop and review policy and make recommendations to the Executive and Council. It has the power to ‘call-in’ decisions made by Executive Members, Committees and officers for further review if they do not follow the decision-making principles of the Council’s Constitution, or if they are outside the budget and policy framework.
  • Publication of Committee Reports and Papers, demonstrates that elected Members and members of the public and press have reasonable notice of forthcoming Council business, and transparent and open access to information about those decisions. The application of exemptions under Schedule 12A of the Local Government Act 1972 is regulated by the Democratic Services team according to the ‘Exempt Business Guidance 2023’ (internal document); and, is overseen by the Monitoring Officer.
  • The Statement of Key Executive Decisions ensures that all key Executive decisions by the local authority are published in a transparent and open manner, with a clear statement of the decisions, reasons, and options considered, within three working days of the decision.
  • The Treasury Management Strategy (2024/25) explains the Council’s approach to management of cash flows, borrowing and investments, and the associated risks.
Previous Principle 4 and 5

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