What is meant by governance, and how it relates to Oxfordshire County Council.

Governance is about how the council ensures that 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, processes, and cultures and values, by which the council is directed and controlled and through which it accounts to, engages with, and leads its communities. 

Corporate governance in public bodies can be defined as “the framework of accountability to users, stakeholders and the wider community, within which organisations take decisions and lead and control their functions, to achieve their objectives”. It can be further defined as including “robust systems and processes, effective leadership and high standards of behaviour, a culture based on openness and honesty and an external focus on the needs of service users and the public”.

• Oxfordshire Code of Corporate Governance - March 2023 (pdf format, 362 KB)

Guidance and Framework

The Framework urges local authorities to test their structures against seven core principles by:

• reviewing their existing governance arrangements against the Framework
• developing and maintaining an up-to-date local code of governance including arrangements for ensuring its ongoing application and effectiveness
• preparing an Annual Governance Statement in order to report publicly on the extent to which they comply with their own code, including how they have monitored the effectiveness of their governance arrangements in the year, and on any planned changes for the coming period.

The preparation and publication of an annual governance statement in accordance with this Framework is necessary to meet the statutory requirement set out in Regulation 6 (4) of the Accounts and Audit (England) Regulations 2015 for authorities to prepare a statement of internal control in accordance with “proper practices”.

Internal control and risk management are increasingly recognised as important elements of good Corporate Governance.

The scope of internal control spans the whole range of the council’s activities and includes controls designed to ensure that:

• the council's policies are implemented in practice;
• high-quality services are delivered efficiently and effectively;
• the council’s values and ethical standards are met;
• laws and Regulations are complied with
• required procedures are adhered to;
• financial statements and other published performance information is accurate and reliable;
• human, financial, environmental and other resources are managed efficiently and effectively.

The Regulations place a requirement on the council to conduct an annual review of the effectiveness of its internal controls and identify areas where improvements can be made.

Position in Oxfordshire

The implementation of the Accounts and Audit Regulations required the production of a Statement on Internal Control, which formed part of the council’s Statement of Accounts. The council’s Corporate Governance Assurance Framework sets out the Corporate Governance arrangements within the council and sets out the roles and responsibilities of key Officers, Councillors and Committees within that process.

This Code of Corporate Governance sets out how Oxfordshire County Council complies with the requirements of the Code and identifies key documents that provide detailed information on how the council ensures these Corporate Governance principles are adhered to.

Core principles

The council's Code of Corporate Governance is based on seven core principles:

1. Behaving with integrity, demonstrating a strong commitment to ethical values, and respecting the rule of law;
2. Ensuring openness and comprehensive stakeholder engagement;
3. Defining outcomes in terms of sustainable economic, social, and environmental benefits;
4. Determining the interventions necessary to optimise the achievement of the intended outcomes;
5. Developing the County Council’s capacity, including the capability of its leadership and the individuals within it;
6. Managing risks and performance through robust internal control and strong public financial management; and
7. Implementing good practices in transparency, reporting, and audit to deliver effective accountability.

The Code specifically identifies the actions and behaviours taken by the council in relation to each of these core principles and associated sub-principles. The Code, along with its supporting infrastructure is set out below at Appendix A, with evidence of compliance summarised in Appendix B.
The Audit and Governance Committee is currently responsible for approving this Code and ensuring it is annually reviewed and updated accordingly.