PURPOSE

1. To inform members of the Standards Committee of the progress in the first phase of the Ethical Audit, to invite the Committee to make interim recommendations and to consider further the second phase of the Audit.

BACKGROUND

2. The conducting of an Ethical Audit is part of the Council’s Comprehensive Performance Assessment Improvement Plan. The principle of the Standards Committee undertaking the task was endorsed at the meeting of the Standards Committee on 26 November 2002 and a detailed methodology was approved at a subsequent meeting on 17 June 2003.

3. A working group comprising four members of the Standards Committee, the Monitoring Officer, the Deputy Monitoring Officer and the Compliance and Risk Manager has met on two occasions. Both members of the Standards Committee and officers have found the time commitment difficult to manage. Nevertheless, considerable progress has been achieved.

4. At the first meeting of the working group on 5 August 2003 the first part of a desktop review of policies and processes was completed. The exercise was to identify whether the list of documents set out in the methodology were in existence and, secondly, to classify those document which did exist according to the key set out in Appendix A to this report.

5. The second part of Phase 1 consisted of more detailed scrutiny of those documents categorised as 3 in the initial part of the phase – those documents which merited closer review. That exercise took place through individual reading and a feedback meeting on 7 October.

6. The category 3 documents were reviewed against five criteria:

· Comprehensibility/user-friendliness

· Clarity of responsibility for implementation

· Arrangements for monitoring implementation/adherence

· Clearly planned evaluation/review

· Clear lines of distribution/communication

7. The working group took the opportunity to do some minor draft improvements as part of the process.

8. The following table sets out the product of the examination of the documents and the Standards Committee is asked to endorse them as recommendations to the Monitoring Officer and the Council in conducting a planned technical review of the constitution during winter 2003/04, which is also planned as part of the CPA Improvement Plan.

1.	Key constitutional documents, including all of those identified as being Category 3 in this review should be brought together in a single document or organised in a coherent and cross-referenced fashion. The revised document to include a single index identifying when each document was last updated and when planned for review. This information should be replicated as footers to all locally produced documents, a useful model is contained in the current confidential reporting procedure.
2.	All the existing locally produced documents require updating/refreshing to reflect changes in personnel/job titles, Council structures and legislation – where possible future-proofing by removing references to names.
3.	Accessibility will be encouraged by a consistent numbering regime which works in both electronic and hard copy formats.
4.	The planned review of the constitution should have as an objective a reduction in the current number of procedure rules and protocols and, as a second objective, to be shorter and to avoid some of the existing repetition.

9. The working group have identified a number of necessary amendments to the current constitution. These vary from highly significant (amending the quorum of the Standards Committee) through more mundane issues (such as adding a reference to the Standards Board), to minor drafting improvements (such as clear references to statutory authority where that would assist the casual reader). With the exception of amending the quorum of the Standards Committee, these can be addressed by the Monitoring Officer in reviewing the constitution of the Council.

10. The quorum of the Standards Committee is currently 3 independent members, 2 Isle of Wight Council members and (when considering Parish/Town Council matters) a representative from the Association of Parish and Town Councils. It is likely that there will be occasions when the Committee will become inquorate by this rule when hearing complaints against members referred, via the Monitoring Officer, by an Ethical Standards Officer. This will particularly be the case if prejudicial interests arise.

11. It is therefore suggested that Article 9 of the Constitution is amended to add after the words “Parish Councils”: “EXCEPT:

(i) When determining complaints against members of the Isle of Wight Council referred by an Ethical Standards Officer when the quorum will be any 3 members; or

(ii) When determining complaints against a Parish or Town Councillor referred by an Ethical Standards Officer when the quorum will be 3 members including the representative of the Isle of Wight Association of Town and Parish Councils (of their deputy).”

12. Appendix A reveals that some of the documentation sought by the desktop review is absent or inadequate. The working party suggests that the Select Committee support the following interim recommendations to address these gaps:

Interim Recommendation	Responsible
Support for members. Through discrete guidance and/or amendment of the Members’ Handbook, Members entitlement to administrative support; training; accommodation; publicity; media relations; publications; travel and subsistence should be more clearly set out.	Monitoring Officer
Members’ correspondence. Through discrete guidance and/or amendment to the Members’ Handbook, guidance to Members on dealing with correspondence should be set out.	Monitoring Officer
Declarations of interest. Following assessment of sufficiency/completeness of Standards Board guidance, further local guidance to be issued, over a period of time, to support/reinforce good practice in declarations of interest.	Monitoring Officer/ Standards Committee
Gifts and hospitality. Following assessment of sufficiency/completeness of Standards Board guidance, further local guidance to be issued over a period of time to support/reinforce good practice in registration of gifts and hospitality.	Monitoring Officer/ Standards Committee
Statutory officers. Detail of responsibility/arrangements for discharge of functions of three statutory officers should be set out in single A4 summary for inclusion in Members’ Handbook, on website, circulated to staff.	Statutory Officers
Audit Reports (internal/external). A clear protocol/record of the mechanisms for reporting to Members, public availability, responsibility for implementation and monitoring implementation is required.	Chief Financial Officer/Compliance and Risk Manager
Audit Code of Conduct. The existence and availability of the Audit Code of Conduct needs to be publicised.	Chief Financial Officer/Compliance and Risk Manager
Members’ Induction. The Members’ induction programme should be added to, in order to ensure new Members are able to feed back more formally, via their mentor or otherwise, during the process and to ensure a development/training needs assessment is produced during the course of the induction.	Chief Executive Officer

13. The desktop evaluation to date has not focused on the technical/legal accuracy or sufficiency of the documents. It is difficult for the working group to undertake a detailed, technical review and it is suggested that the role of the working group is to identify any documents, during the course of phases 1 and 2 which require detailed consideration. The Standards Committee can then “commission” a detailed review using in house or external expertise to evaluate the current documents and/or processes.

PHASE 2

14. A key part of the methodology for the next phase of the Ethical Audit is the production, distribution and analysis of a questionnaire. It is suggested that the working group, either by meeting or through an exchange of electronic correspondence develops the following themes into a short but informative questionnaire :

(i) Awareness of ethical/probity regime including :

· Local rules

· National rules

· Standards Committee role

· Standards Board for England role

(ii) Perceptions of :

· Sufficiency/appropriateness of existing regime and processes

· Local adherence to regime/processes

(iii) Confidence in ability of authority to deal with weaknesses and departures from required standards.

(iv) Identification of current/future priorities for change/development.

15. The working group could similarly develop a methodology for targeting useful respondents and adopting appropriate contact methods. These may include :

(i) Post/e-mail to :

· Elected Members

· A sample of staff (including those who do and those who do not have substantial contact with Elected Members.

· Vocal local critics (careful selection will be necessary)

· Trade Unions

(ii) Face to face interviews :

· Sample of Members (3 or 4 including opposition and ruling group members)

· The former Chair of the Standards Committee

· Media (particularly County Press?)

· Member of Parliament/MEP

· Senior staff (2 or 3 including Chief Executive Officer, Head of Planning)

16. The Committee will also wish to consider developing a short list of candidate topics for further research as part of the third phase of methodology. Current suggestions include :

· Documents/processes for detailed technical/legal reviews

· Practice in declaring interests

· Practice in registering interests

· Engagement of stakeholders in ethical/probity issues.

· Sufficiency of guidance on access to information.

· Awareness of key Financial Regulations/Contract Standing Orders among Members and officers.

· Ethics/probity in the context of planning.

17. As Phase 3 in the methodology will not take place until after the next meeting of the Standards Committee it is suggested that final selection and prioritisation of topics for further research be considered at that next meeting.

RECOMMENDATIONS

(i) That the 4 recommendations from the working group set out in paragraph 8 are adopted by the Standards Committee for inclusion by the Council in its planned revision of the constitution.

(ii) That the Standards Committee adopts the interim recommendations set out in paragraph 12.

(iii) That the current working group continues to deliver the existing methodology, as set out in paragraphs 14 and 15.

(iv) That a further interim report is brought to the next meeting of the Standards Committee.

BACKGROUND PAPERS

18. The Council’s constitution.

Contact Point : John Lawson, ( 823216, e-mail: [email protected]

JOHN LAWSON

Monitoring Officer

Appendix A

ETHICAL GOVERNANCE AUDIT – PHASE 1

Key

C Constitution

I Internet

H Members’ Handbook

X Not available

? Unsure

1 National Document

2 Fine

3 Needs to be reviewed

1. Desk Top Review of Policies (eg what policies and processes do we think we have in place?)

Standing Orders (Procedure Rules)	C	3
Scheme of Delegation Officers	C	2
Members	C	2
Terms of Reference	C	2
Contract Standing Orders	C	3
Financial Standing Orders	C	3
Standards Document:
National Code of Local Government Conduct – Members	C	3
Code of Conduct – Employees	C/?	2
Officer / Member Protocol	C	3
Code of Practice – Whistleblowing	I	3
Guidance – for Members on Outside Bodies	H	3
Standards Committee - Terms of Reference	C	3
Monitoring Officer Guidance	?	3
Conflicts of Interest	I	1/3
Guidance on Support for Councillors	?	X/3
Guidance on Members’ Correspondence	?	X
Dissemination of Local Gov. Ombudsman decisions	?	1
Decision making and Legal and Financial advice	I	2
Audit Reports - dissemination	I	X/2
Audit Code of Conduct	I	X/2
Declarations Gifts and Hospitality	C	1/3
Recording of decisions	I/C	2
Induction – Officers	I	2
Members (needs Personal Performance and feedback as products)	I/?	X/3
Training Officers	I	2
Members	?	X/3
Risk Management Protocol	?	2
Health and Safety Policy	I	2
IT Security Policy	I	2
Management Letter (District Audit/Audit Commission)	I	(2)
Statutory Plans (various)	I	2
Best Value Performance Plan	I	2
Members Allowance Scheme	I/C	2
Officer Expense Scheme	I	2
Arrangements for Head of Paid Service	C	3
Arrangements for Monitoring Officer	C	3
Arrangements for Section 151 Officer	C	3
Employment Policies (including local agreements)	I	2

Recommendations

1. Index for constitution and handbook to include (a) review date, (b) update date, (c) issue dates (also to be in footers) [Good model – confidential reporting control].

2. Cross reference for updating (Q – software solution) and paper x-ref plan.

3. Update/refresh – changes in personel/job titles – at least 6 monthly; Members allowances and legislation and delete names/specifics.

4. Consistent numbering (paras 1.1; 1,2 etc) refine which works in electronic and hard copy.

5. Is the handbook the place for blank pro formas? [Discrete section for Forms?]

6. Emphasise (in o/s bodies guidebook) that in conflict situations o/s body’s interest take priority.

7. Complaints procedure needs to refer to Standards Board.

8. Article 2 of the Constitution needs to cross reference to job profiles.

9. Standards Committee (Article 9) 1. Update and delete names; 2. Deputies – add reference (inc. quorum) and 3. Add s.66 reference.

10. Article 9 – quorum for referrals under s.66 regs.

11. Article 10 – amend to make clear extent and limits of member involvement in management of staff (esp CEO) in appraisal/discipline/appointment.

12. Article 10 – clarity on MO/Proper Officer/CFO

13. Throughout reference the parts of constitution.

14. Add significant/important statutory references to all of constitution.

15. Redraft multiplicity of procedure rules and protocols to 1. shorten; and 2. cut out repetition.

16. Introduce – follow up/ feedback and Personal Development Planning.

17. Add further key (defined by inclusion) ethical documents to handbook/constitution.