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It is crucial that leaders and chief executives keep their governance arrangements up to date and relevant. To assist them, the Framework defines the principles that should underpin the governance of each local government organisation. It provides a structure to help individual authorities with their approach to governance.
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This publication positions the attainment of sustainable economic, societal, and environmental outcomes as a key focus of governance processes and structures. Outcomes are what give the role of local government its meaning and importance, and it is fitting that they have this central role in the sector’s governance.
The focus on sustainability and the links between governance and public financial management are crucial – local authorities must recognise the need to focus on the long term. They have responsibilities to more than their current electors; they must take account of the impact of current decisions and actions on future generations.
To achieve good governance, each local authority should be able to demonstrate that its governance structures comply with the core and sub principles contained in this Framework. It should therefore develop and maintain a local code of governance/governance arrangements reflecting the principles set out. Whatever form of arrangements are in place, authorities should test their governance structures and partnerships against the Framework’s principles.
Local authorities are required to prepare a governance statement in order to report publicly on the extent to which they comply with their own code of governance on an annual basis, including how they have monitored and evaluated the effectiveness of their governance arrangements in the year, and on any planned changes in the coming period. The process of preparing the governance statement should itself add value to the effectiveness of the governance and internal control framework.
The preparation and publication of an Annual Governance Statement in accordance with the Framework fulfils the statutory requirement in England, Scotland, Northern Ireland and Wales for a local authority to conduct a review at least once in each financial year of the effectiveness of its system of internal control and to include a statement reporting on the review with its Statement of Accounts.
This edition of the Framework applies to annual governance statements prepared for the financial year 2016/17 onwards.
This publication is only available as an online version.
It has both searchable HTML and a bookmarked downloadable PDF of the publication that can be shared throughout your organisation. Customers will need to register and login to CIPFA’s website to access the publication.
Details of licensing arrangements for other categories of purchaser, which includes those organisations operating shared service arrangements, are available from CIPFA’s Publications Department.
Also available to purchase is:
Guidance Notes for English Authorities (2016 Edition)
Guidance Notes for Scottish Authorities (2016 Edition) (estimated publication date September 2016)
Guidance Notes for Welsh Authorities (2016 Edition) (estimated publication date September 2016).
The revised edition of Guidance Notes for Policing Bodies (2016 Edition) will be free to download.
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Delivering Good Governance in Local Government: Guidance Notes for English Authorities (2016 Edition)