Agenda item

Report of the Director of Strategy and Policy and the Head of Analysis and Insight

Elaine Fox, Corporate Policy and Performance Officer, presented the detailed report which informs the committee the outcome of the annual health check undertaken on the City Council’s significant partnerships.

Appendix 1 to the report identifies organisations considered as significant partnerships, appendix 2 provides the risk scoring for each organisation within different areas, appendix 3 provides the guidance and the health check question form, appendix 4 detailed recommendations for improvement for the Crime and Drugs Partnership and Midlands Engine, whilst appendix 5 provides verification schedule up to 2024.

The following points were highlighted and responses provided to committee members’ questions:

(a)  Every year organisations which are considered significant partners are requested to complete a governance survey which enables the City Council to identify the risk in being connected with each partnership. Partners are requested to rate their compliance has excellent (rating 1), good (rating 2), some key areas for improvement (rating 3), or many key weaknesses (rating 4), on a range of areas including finance, accountability and performance;

(b)  Last year there were 11 organisations considered as significant partners, but since the N2 Skills and Employment Board has ceased to operate, there are now only 10. This year’s survey includes an additional section with regard to GDPR at the request of the former Audit Committee Chair;

(c)  Where organisations rate themselves as 3 or 4, or are unable to assess the area requested, further information and/or a change in procedures may be requested. To ensure that rating interpretation is consistent, each organisation will undergo a full verification every 2 to 4 years;

(d)  The Green Nottingham Partnership is still developing some documents to which the ratings apply and was not able to wholly complete the survey but is due to be verified during 2019;

(e)  Nottingham City Safeguarding Children Board (NCSCB) had recognised concerns around future funding but is due to be replaced by a Strategic Management Board as of 1 April 2019;

(f)  Concerns have been raised with regard to the Crime and Drugs Partnership in that the decision-making structure of the organisation is not clear, particularly the role of the executive, and there is no formal recognition that the CDP does not meet the GDPR threshold for holding personal data and therefore does not have a specific GDPR policy. Whilst a risk log was maintained it had not been presented to the Board for formal recognition and there wasn’t a schedule for regular revision. However, all requests for supporting documents were thoroughly fulfilled and the response to the questionnaire was very thorough;

(g)  With regard to Midlands Engine, some documents were not provided despite repeated requests, a clear record of Board decision making and performance reporting could not be provided, the website did not provide access to basic governance documents and information, and whilst a risk register was discussed and monitored at Board meetings, when requested it was not provided. Recommendations were issued in response to all identified concerns;

(h)  In response to a member’s concerns that year after year the Green Nottingham Partnership’s governance documentation appeared to consistently rate as ‘improvement needed’ without progressing, it is noted that there have been improvements since last year, but that recent staffing and support issues have impacted on its rating. Although Green Nottingham Partnership does not receive funding from City Council, there is still an element of risk to the Councils reputation through the partnership so a further verification will be undertaken in 2019;

(i)  With regard to the Midlands Engine, Nottingham City Council is an accountable body and should be able to access documents without meeting resistance so this issue has been escalated to Chris Henning, the Corporate Director of Development and Growth, to address. If members of the Audit Committee would like access to these documents once they are provided, then this can be arranged;

(j)  The questionnaire provides examples of good governance, but if members of the Audit Committee feel that a more detailed framework of expectations including the provision of documents when requested is required, then this can be provided to the partnerships in future.

Concerned at the resistance of some partnerships to provide documents and therefore assurance, members requested that confirmation, or otherwise, of the receipt of the required documents is provided by the committee’s February meeting. If by then the Midlands Engine is not able to complete the survey and provide requested documents without valid explanation and assurance, its verification is repeated next year.

RESOLVED

(1)  to note the key findings from the partnership governance health checks and register of significant partnerships;

(2)  to note the findings and recommendations following verification of governance documentation of two of the partnerships;

(3)  to provide the Committee with assurance at the Audit Committee meeting on 22 February 2019, the Director of Strategy and Policy is requested to: 

(a)  to provide an update regarding the documents requested from partnerships which are outstanding, and if necessary, what further action is to be taken;

(b)  to request and confirm that the CDP defines clearly within the organisation and on its website, the relationship between and respective roles of its Executive and Board;

(4)  in future, where risk ratings are considered to be consistently poor by Policy and Performance team following the review, that  Policy and Performance team request the partnership concerned to provide evidence of what action has been or will be taken to mitigate those risks, and that this information is provided to the Audit Committee. Audit Committee can then ask a representative of the partnership concerned to attend the Committee and account for the continued poor performance in relation to their governance documentation and their plans to improve.