Annual Governance Statement 2019

1.01 We must conduct a review of the effectiveness of our system of internal control and report our findings in an annual governance statement. The statement must be prepared in accordance with proper practices and be reported to a committee of Councillors. This document comprises our Final Annual Governance Statement (AGS) for 2019 to accompany the final audited Accounts for 2018/19.

Approved byCorporate Governance and Audit Committee26 July 2019

1. Scope of responsibility

Context

1.02 Our ambition continues to be for us to be at the forefront of those localauthorities that are able to demonstrate that they have the necessarycorporate governance to excel in the public sector. As set out in our BestCouncil Plan, we aspire to be the Best Council and the Best City in the UK, forLeeds to have a strong economy and be a compassionate, caring city thathelps all its residents benefit from the city’s economic growth. This is setagainst the challenge of austerity where some councils either face or havefallen into full financial crisis.

1.03 The findings from the 2018 Joint Strategic Assessment (JSA) analysiscorroborate our rationale for health and wellbeing and inclusive growth beingthe primary strategies to achieve our Best City ambitions. Our approachextends the analysis to cover the wider determinants of health and providesessential analysis down to a neighbourhood level. The JSA confirms ourbroadly strong economy but also highlights areas of socio-economic diversityand intensification of inequalities in parts of the city.

1.04 We will focus on creating the right conditions for the economy in Leeds toprosper and, hand in hand with that, ensure a consequence of that growth is areduction in poverty and inequalities that exist in Leeds. We have a uniqueand compelling offer based on our:

  • Central geographical location in the UK;
  • Achievements to date;
  • Young demographic;
  • Compassionate approach based on Social Value, supporting steps toimprove mental health and being child focussed;
  • Cultural, sporting and environmental assets;
  • Collaborative approach and access to innovators.

1.05 Collaboration is at the centre of our civic leadership; working this way we havesuccessfully attracted Channel 4, moved the proposed location of the HS2Station, developed apprenticeships with all Leeds’ law firms, helped tackleskills gaps in the digital sector, more closely integrated NHS and Social careservices and developed citizen led social enterprises. We have alsorevitalised our approach to community engagement with local communitycommittees.

1.06 Leeds is also becoming a technological powerhouse and investment in fullfibre is accelerating. Our 100% Digital Initiative is looking to ensure everyonehas digital skills and opportunities to use them with programmes in place thatprovide free Wi-Fi in libraries and tablet loan schemes. We will also worktogether with experts, policy makers and citizens and work collaboratively toimprove the design and access to public services in the city.

1.07 Coupled with uncertainty nationally about our relationship with the EU andhow we engage internationally the changing needs of our citizens andcommunities, ongoing significant reductions in resources, central governmentreforms and financial and governance risks all continue to present challengesto the public sector as a whole.

1.08 We will ensure that our governance arrangements support the effectivedelivery of services, whether this be by direct service provision, in partnership,by alternative innovative service delivery mechanisms or simply by exertingour influence to deliver better social value outcomes as well as value formoney.

1.09 By applying our values and local codes of conduct for Members andemployees, we commit to devising and delivering services to the citizens ofLeeds in a way that demonstrates accountability, transparency, effectiveness,integrity, and inclusivity.

2. The Governance framework

2.01 Our governance arrangements are designed to ensure that we take anappropriate and proportionate approach to managing risk whilst ensuring thatour outcomes are defined and delivered. The arrangements are not designedto eliminate all risks but rather provide a reasonable degree of assurance thatwe operate in an effective and responsible way.

2.02 Our governance framework in Leeds comprises our policies, plans, systemsand processes and culture and values that allow us to achieve our strategicoutcomes and provide services in a cost effective way and in the publicinterest. The arrangements can be summarised as:

  • Our vision - that is our shared priorities and intended outcomes forcitizens and service users documented in the Best Council Plan and otherdocuments contained in our Budget and Policy Framework;
  • The committees, boards and panels we have established to ensuredemocratic engagement and accountability is central to our decisionmaking;
  • Our arrangements for the oversight and scrutiny of decisions and policydevelopment by councillors;
  • Delegation and sub delegation arrangements which document the rolesand responsibilities of executive and non-executive councillors and ourstatutory (and other senior) officer functions;
  • Our risk management arrangements that help us mitigate threats andmake the most of opportunities which present themselves – these includeour business continuity and resilience arrangements;
  • Our performance and accountability arrangements that help us analyseand act on benchmarking and performance information as a means ofimproving services and delivering better outcomes for the citizens ofLeeds;
  • Our People and Culture Strategy, Member Development Strategy,Values and codes of conduct which underpin how Members andemployees work; Being open, honest and trusted, Treating people fairly, Spending money wisely, Working as a team for Leeds, Working with people, engaging all communities
  • Our arrangements for consultation and engagement with thecommunity, particularly focussed to help ensure inclusivity;
  • Our arrangements to safeguard our most vulnerable citizens includingfully embracing the role of independent chairs of safeguarding boards forchildren and adults and our Community Safety Partnership;
  • A high performing and independent Internal Audit service;
  • Independent oversight and challenge provided by our External Auditors,Government Inspectorates and the Local Government Ombudsman;
  • Our procedure rules and internal management processes for: Financial management and Procurement, Business Continuity and resilience, Information governance and data security, Health and safety, Decision making, Whistleblowing and complaints handling, Anti-fraud & corruption

3. Review of effectiveness and key actions

3.01 Our process of review is continuous and considers decisions taken andmatters considered by:

  • Full Council and committees appointed by Full Council, including thespecific assurance work of the Corporate Governance and AuditCommittee (CGAC) and Standards and Conduct Committee;
  • The Executive Board;
  • Directors under their delegated authority and with the knowledge of theoperation of governance arrangements within their directorates;
  • Corporate Leadership Team (and via consideration of this statement byour Corporate Leadership Team);
  • Periodic Peer reviews;
  • Internal Audit;
  • External Audit;
  • Office for Standards in Education, Children's Services and Skills(Ofsted);
  • Care Quality Commission (CQC);
  • Local Government and Social Care Ombudsman.

This Annual Governance Statement draws on that work and presents aconclusion in relation to our governance arrangements.

Behave lawfully, with integrity and in the public interest anddemonstrating this through our conduct and behaviour.

3.02 Our council values provide a framework within which our organisationalculture is embedded. Our values are at the heart of our organisation. In aperiod of immense change and real challenge we must be both confident anddecisive about what we do and how we do it.

3.03 An annual assurance report, compiled by the Chief Officer HR, wasconsidered by our CGAC in June 2019 in respect of employee conduct andemployment policies and provided assurance that key policies and proceduresare fit for purpose, effectively communicated, working as intended and havebeen regularly reviewed. Two areas for further improvement were identifiedrelating to gifts and hospitality.

Key Action: that arrangements for Directors’ acceptance of offers ofgifts and hospitality be reviewed to ensure there is third party oversightof offers prior to these being accepted.

Key Action: that a process be introduced whereby the annual review ofgifts and hospitality requires ‘nil returns’ to be submitted.

Key Action: Our Internal Audit Plan for 2019/20 includes work to samplecheck HR policies to provide assurance as to the extent to which theyare consistently and properly applied across the council.

Member Conduct

3.04 Our Standards and Conduct Committee has reported on their work topromote and maintain high standards of conduct by members and cooptedmembers of the authority – this was reported to full Council in March2019.

3.05 No Leeds City Councillor, nor any Parish or Town Councillor (in the Leedsarea), has been found by a Stage 3 Hearing to have failed to comply with theCode of Conduct adopted.

3.06 The Monitoring Officer has supported members of the Authority (and of Parishand Town Councils) in meeting their obligations to notify disclosable pecuniaryinterests. These requirements have been met during the year with periodicreminders being issued to elected members and Clerks at Parish and TownCouncils for registers of interests to be reviewed. In addition, bespoketraining has been provided to Parish and Town Council clerks ahead of the alloutParish and Town Council elections in May. Guidance has also beenprovided to support the registration of Gifts and Hospitality.

3.07 The Committee on Standards in Public Life (CSPL is an Advisory Committeeappointed by the Prime Minister) selected Leeds as a focus authority to informtheir review of the local government standards regime. The Committeewelcomed the detailed account we provided of our experiences of ethicalstandards in local government as well as our views relating to ethicalstandards in public life generally and concluded that it was clear that we havea positive culture in relation to ethical standards.

3.08 Our input helped inform the national review with full and open discussionabout how we build and maintain an ethical culture and utilise standardsarrangements on the ground - aspects of our practice were referenced in thefinal report. We have reflected on best practice proposed by CSPL to furtherstrengthen our arrangements including changes to the Members’ Code ofConduct and the guidance to Members on use of Social Media. We await theGovernment’s response to recommendations made to them, and will reviewarrangements in the light of such response.

Key Action: We will further review our ethical framework arrangementsin light of any future legislative change or statutory guidance issued byGovernment or the Local Government Association.

3.09 Our Anti-Fraud policies (Anti-Bribery Policy and Anti-Money LaunderingPolicy) have been reviewed during the year by the CGAC and updated by theChief Officer (Financial Services). Assurances that these policies are routinelycomplied with were received by our Internal Audit team who report to eachmeeting of the committee on issues raised.

3.10 In-house lawyers provide comprehensive legal advice, training, and support tomembers, member bodies, and all directorates, as well as managing theprovision, where necessary, of external legal advice. The in-house lawyershave effective relationships with services which facilitates a high support, highchallenge environment, leading to better and more robust outcomes. Readyaccess by members and officers to high quality lawyers, specialised in localgovernment work and having a clear understanding of the council's vision andvalues, plays an important part in helping to ensure that the council adheresto the principle of behaving lawfully.

3.11 Our CGAC undertook an assessment of the committee’s arrangementsagainst best practice recommended by the Chartered Institute for PublicFinance and Accountancy (CIPFA). As a result of the assessment we havestrengthened the arrangements by now presenting an Annual Report to fullCouncil. This was considered in March 2019.

3.12 The self-assessment exercise also highlighted a variance in Leeds’ practice inrelation to the appointment of Independent Members to the Committee. Themerits for progressing such an appointment were agreed at our AnnualCouncil meeting in May 2019.

Key Action: We will actively pursue the appointment of an IndependentMember to the Corporate Governance and Audit Committee in the2019/20 Municipal Year.

Focus our resources on outcomes and ensure council tax payers andservice users receive excellent value for money.

3.13 We are ever mindful of the pressures facing the council and the city in termsof the increasing demands on public services within the context of reducedfunding and ongoing uncertainties related to Brexit. We recognise thepersistent inequalities across Leeds and in specific localities in terms ofpoverty and deprivation, health and education attainment, access toemployment and poor housing.

3.14 Our Annual Standards Report provides an opportunity to reflect on learning inLeeds over the last year. The report highlights areas of progress andsuccess, but also creates one of the foundations for an open and honestconversation around the significant challenges we face in working towards ourambition of being the best city for learning. We have identified significantchallenges that the local authority, education providers and the city are facing.These include the pressures on local government funding, complexitiesaround the high needs block, the high rates of short term exclusions and thegap in educational outcomes between different demographic groups.

Key Action: We will progress the 15 Actions identified in our AnnualStandards Report.

Best Council Plan

3.15 Our business planning and performance management arrangements haveenabled members and senior management to focus our resources onoutcomes and ensure value for money. The arrangements are centred onour corporate plan, the ‘Best Council Plan’, which is updated each year. InFebruary 2019, following consultation, the Best Council Plan was updated andrefreshed. We have introduced a new ‘Age-Friendly Leeds’ priority, based onthe existing, well developed strategy to make Leeds a place where olderpeople are valued, feel respected and appreciated and are seen as the assetsthey are, and also prioritises their needs. We have also strengthened theenvironmental aspects of sustainable development by establishing a‘Sustainable Infrastructure’ priority (replacing 21st Century Infrastructure)and highlighted linkages across all priorities.

3.16 A key element of this is our response to the full Council motion declaring a“Climate Emergency”. Our Executive Board has considered and agreedarrangements for a Clean Air Zone (CAZ) as a strand of a whole package ofwork that is being undertaken to drive air quality improvements citywideincluding:

  • the Leeds Public Transport Investment Programme;
  • implementation of the recommendations of the Leeds Climate ChangeCommission for science based emission reduction targets for the cityand support to a city conversation on how to achieve those;
  • the inclusion of a new section on Executive Board reports that willhighlight the impact of decisions to be taken to achieve the climateemergency aims

3.17 In May our Annual Council Meeting also established an Advisory Committeeon Climate Change (to both the full Council and the Executive Board) andthe Leader of Council strengthen the officer delegation and Executive MemberPortfolios to place even greater emphasis on working to resolve ClimateChange challenges.

3.18 The ‘Best Council’ ambition of being ‘An Efficient and EnterprisingOrganisation’ was retained in the updated Best Council Plan but extended toinclude ‘Healthy’, adding further focus to the health and wellbeing of staff. TheBest Council Plan key performance indicators were also updated to ensurethey remain fit for purpose.

3.19 Our Executive Board and CGAC have both independently reviewed theprogress made in delivering our Best Council Plan ambitions. The annualperformance report considered in the autumn of 2018 looking back onprogress in delivering the 2017/18 Best Council Plan priorities demonstratedthat our strategic objectives have been reviewed and are fit for purpose andthat supporting performance management arrangements are effectivelycommunicated and monitored. Our Best Council Plan key performanceindicators are reviewed quarterly. Both the scorecard and annual reports arepublicly available on the leeds.gov website and the Leeds Observatory.

Key Action: We will produce a performance report in September 2019 toreview our progress in delivering the Best Council Plan during 2018/19.

3.20 In addition a range of supporting plans and strategies (for example, theChildren and Young People’s Plan; Leeds Housing Strategy; Better LivesStrategy; Safer Leeds Plan and Joint Health and Wellbeing Strategy), sitalongside the Best Council Plan each with their own performancemanagement arrangements, including Scrutiny Boards and partnershipboards. Operational performance management arrangements are in place atservice level.

Procurement

3.21 We have reviewed and updated our Procurement Strategy and in doing sohave used the National Procurement Strategy self-analysis toolkit to ensureour arrangements remain fit for purpose and further reflect our ambitions fordelivering value for money and social value.

3.22 In March 2019 our CGAC received assurance that, from the review,assessment and ongoing monitoring carried out, the Chief Officer (FinancialServices) considers that, overall, procurement systems are operatingeffectively and that there are no fundamental control weaknesses. OurScrutiny Board for Strategy and Resources also receives regular reports onprocurement. Compliance though remains an issue in some areas, notablyaround justification in reports considering waivers, however the proposedprocess changes and amendments to Contract Procedure Rules (CPRs) areanticipated to be of benefit in this regard and will provide a much clearerpicture of the actual number of, and justifications for, waivers of CPRs. OurCGAC have highlighted the potential risks arising from Single Tender Waiversand this issue will be a feature of planned Internal Audit follow up work duringthe year.

3.23 We recognise that procurement assurance needs to be subject to regularreview and assessment and the following actions are already beingprogressed:

  • Adoption and communication of the New Procurement Strategy(including KPIs) and procurement documentation;
  • Review of CPR’s in line with changes in legislation and Councilpolicy.

Key Action - During 2019/20 Internal Audit will review and follow up thearrangements in place for the approval and management of waivers andreport the outcome of their work to the Corporate Governance and AuditCommittee. The committee will also review the implementation of thenew Procurement Strategy though the Annual Procurement AssuranceReport from the Chief Officer (Financial Services).

Key Action - After the strategy has been operational for a year, furtherbaseline figures will be considered for introduction into KPIs in order tomonitor performance.

Better Care Fund

3.24 Each quarter, we report to NHS England (NHSE) on the performance of theBetter Care Fund (BCF) and to the Ministry for Housing, Communities andLocal Government (MHCLG) regarding the use of the additional ImprovedBetter Care Fund (iBCF) funding allocated through the Spring Budget 2017.Routine monitoring of the delivery of the Better Care Fund is undertaken bythe Leeds Plan Delivery Group (LPDG). Our Health and Wellbeing Boardprovide local oversight of these returns.

Be open and engage with local communities, service users and our otherstakeholders.

3.25 The delivery of our Best Council Plan recognises the importance of effectiveengagement with the public, partners and staff and taking account of this indecisions that we take. These approaches are embedded in our Values –these are at the heart of everything we do. They inform the way we designand deliver our services and the way we all work and behave. A centraltheme running throughout our Best Council Plan is to tackle inequalities; manyof our KPIs are inequality focussed and we recognise the importance of takingaccount of equality considerations in the decisions we take.

Tackling Inequalities

3.26 We have retained our place on the Stonewall Top 100 for LGBT+ InclusiveEmployers in 2019 (at number 72). The ranking is against organisations of allsizes, including large multinational companies, government departments anduniversities. This is a lower position than 2018 where we placed 50th. Anaction plan has been developed by HR who will be working with CommunitiesTeam to address gaps in our evidence following feedback from Stonewall.Progress against the action plan will be monitored by the Executive BoardMembers for HR and Equality.

3.27 2018 saw a review of our Equality Improvement Priorities which wererefreshed and approved alongside our annual progress report to ExecutiveBoard. The Member Champions (Equality) Working Group continues to reviewand challenge progress against the council’s Equality Improvement Prioritiesand meets throughout the year.

3.28 The Annual Report on progress required by the Equality Act 2010 has alsobeen completed and considered by Executive Board in July 2019. We havereported on the gender pay gap; this has narrowed to 6.3% from 8.6% in theperiod 2017 to 2018.

3.29 Celebrations for International Women’s Day in 2019 built on the approach in2018 by holding more events in different communities across the city, thecouncil supported 12 events across the city including a city centre event. TheState of Women’s Health report was launched on International Women’s Day,as a partnership between Women’s Lives Leeds and Leeds Beckett Universityand is the first of its kind in the country. The report was developed followingextensive consultation with women across different communities in Leeds andprovides a great foundation for further work.

3.30 Our 9th annual ‘Equality Assembly’ Conference took place in 2018 bringingtogether people and organisations from across the characteristics protectedby the Equality Act and had a theme of local government finance lastNovember. Feedback from communities on the opportunity to discuss thechallenges related to austerity was very positive. The Equality Assembly alsosaw the launch of the BME Hub’s first annual progress report against its work.

3.31 Membership of our Equality Hubs continues to grow and 2018/19 saw severalsignificant landmarks including the successful delivery of celebrations torecognise the 100th anniversary of (partial) women’s suffrage and theadoption of the LGBT+ Inclusive City Report by Executive Board. The LGBT+Hub was awarded, Best Organisation, and Rob Wilson, Senior HR Officer wonbest organisational worker at the cities LGBT+ awards, both for the secondyear running.

3.32 The Disability Hub and its sub group the Access and Usability Working Grouphave been heavily involved in providing advice and challenge against themany transport, city centre and planning related projects over the last 12months including the redevelopment of West Yorkshire Playhouse, theTransport Strategy consultation, Our Spaces Strategy and redesign of theHeadrow and surrounding roads.

Key Action: In 2019 we are seeking to accredit to “Disability ConfidentLeader” which is level 3 of the Disability Confident Employer framework(LCC is currently accredited at level 2)

3.33 Our Religion or Belief Hub held a Women and Faith event looking at the roleand experiences of women in faith communities and how they contribute tocommunity leadership, social policy and cohesion amongst other areas andhow the we can work more closely to support women from these communities.We have also, through a motion at our full council meeting, formally adoptedthe IHRA definition on anti-Semitism. We continue our efforts to combat allforms of religious discrimination including Islamophobia through our work withSafer Leeds and partnerships with Communities, the Third Sector and FaithOrganisations in the City.

Working with Communities

3.34 Working with communities and with partners particularly in the third sector, weare building further resilience through improving community capacity andleadership, helping communities become more enterprising through citizenled approaches, supporting people to grow more financially resilient andcarrying out a range of community safety actions through the Safer LeedsPartnership. Our Community Safety Strategy for 2018-2021 was approvedby Full Council in November 2018. This sets out the city’s intent to reducecrime and disorder and deliver:

  • A city that is inclusive and safe for all;
  • A compassionate city that protects and safeguards vulnerable people;
  • A City that challenges and seeks to change behaviours that negativelyimpact people in their homes, on the streets and the places that they go.

3.35 We strive continually to improve the relationship between the council and thecitizens of Leeds, and in so doing improve trust in public services andensure the delivery of local integrated and responsive services for localpeople. Our Community Committees are an integral part of that vision with anapproach that places emphasis on tackling poverty and reducing inequality insome of our poorest neighbourhoods.

3.36 The committees have a crucial role in improving the way we work locally andform a vital part of our commitment to involving our residents more closelywith the priorities for their local area and decision-making on funding andservices; our Full Council meeting in September 2018 received and debatedthe joint Annual Report from the Community Committees which demonstratedthe important role they play in meeting our ambition to bring place, people andresources together by:

  • ensuring that we spend money and work more intelligently and flexiblythan before;
  • making it easier for people to do business with us; and
  • Improving the way we make decisions locally with residents.

3.37 Executive Board considered an update on our locality working and priorityneighbourhood approach in February 2019. Over the last year, working withpartners, we have developed the arrangements for the new approach. Themethodology has been predicated on doing things with and alongside localward members, communities, partners and stakeholders, listening to localopinions and reflecting collectively, to develop an emerging approach for thepriority neighbourhood’s work. The Locality Working refresh is complete andthe new governance and operational arrangements have been introduced withthe aim of creating a collective endeavour between elected members, localpartners, council services and communities.

3.38 The local delivery arrangements are identifying strategic issues andopportunities to challenge some of the current approaches to delivery andinvestment. We are seeking to better align planned investment expenditure topriority neighbourhoods to accelerate improvement opportunities. As part ofour ambition to tackle poverty and inequality we and our strategic partners areworking together to accelerate the pace of change in key areas of policy andpractice.

3.39 We believe that a young person’s life chances, and their ability to accessopportunities, should not be impacted by their home circumstance or the areain which they live. We also know the challenges that are faced, both by thepeople who live in poverty, and by the services who work across the city. Forthis reason, we are working with community services and our wider ChildFriendly partners to share our understanding, knowledge and practice, tolearn about the day to day impact of poverty for children and young peopleandthen to work with children and young people to tackle this impact. Werecognise that we need a radically new approach to tackle child poverty, withall organisations sharing information, resources and good practice, to ensurethat all barriers that young people face are broken down.

3.40 The Stronger Communities programme was established in 2016 to help buildthe city’s resilience, improve community engagement and supportcommunities to become more active in the life, and success, of the city. Theprogramme brings together a range of projects and activities ranging fromuniversal activities that take place in all communities to bring people together,through to more targeted work in those area where communities areperceived as being less engaged.

3.41 The city’s work to tackle all types of extremisms and safeguard those mostvulnerable to radicalisation continues to go from strength to strength, throughthe Prevent and Counter Extremism programmes of work. Leeds is wellregarded at both local and national level in this area and has developed anextensive programme of activity to combat all types of extremism, coupledwith a strong partnership working with communities, schools, further andhigher education, health and the police. Since 2017, Leeds has also cochairedwith Luton Borough Council, a national special interest group tocounter extremism. This group is working at national level to share goodpractice, develop resources which improve resilience towards extremism andthereby create more cohesive communities.

Key Action: Internal Audit will review assurance arrangements relatingto Community Cohesion and report their findings to the CorporateGovernance and Audit Committee as part of the delivery of the AuditPlan.

3.42 To meet our ambitions as our city grows we need to ensure we meet effectivelythe needs of both new and existing communities. This led to the developmentof a strategic, coordinated and inclusive approach to inward migration whichsets out our long term strategic direction. It aims to ensure that people whomigrate to Leeds are able to establish their lives quickly and successfully sothat all people live in thriving and resilient communities, and migrationcontinues to benefit the city.

We have identified five priorities to underpin our programme of work:

  1. Improve access to services;
  2. Change attitudes and behaviours;
  3. Increase awareness and understanding;
  4. Strengthen resilience and building capacity;
  5. Strong partnerships approaches.

3.43 In March 2019 our Communities and Environments Scrutiny Board supportedthe continuation of the approach and endorsed the work going forward.

3.44 Customer satisfaction and feedback has been extremely positive in relation tothe Community Hubs delivered to date with residents/partners appreciatingthe investment in the buildings and the range of services available in oneplace. In order to build upon the positive progress made so far, and to achieveour long-term aims around delivering integrated and accessible service whichmeet the increasingly complex needs of the citizens and communities ofLeeds; it is important that we continue our commitment to Community Hubsthrough the Phase 3 programme.

Customer Satisfaction

3.45 CGAC has reviewed the council’s processes and procedures aroundcustomer access and satisfaction. Additional work is required to furtherunderstand current customer interactions and make changes to improvecontact using the most cost effective routes without compromisingaccessibility, particularly given the prevailing financial climate. Internal Auditwill undertake a review of the arrangements for dealing with Member enquiriesas part of their audit coverage and will aim to report prior to the receipt of theChief Officer’s annual assurance report in January 2020.

Key Action: We will continue to address challenges in respect of:

  • telephone waiting times;
  • transitioning to digital channels, by ensuring training and supportis provided as a priority in order that service users are notdisenfranchised from the services they need to access.

Consultation

3.46 The more we work with service users, local people and staff to create betterways to do things, the better the outcomes for all. We strive to involve peopleright from the start when redesigning services, and helping people do more forthemselves. Our approach to this is to embed user-centred designmethodologies when implementing change, especially when the changeinvolves technology. Many decisions we take are about ways to improveservices or deliver services in a more efficient and effective way, so we canimprove the experiences of both our citizens and staff.

3.47 The shaping of our services in the present financial climate is challenging,particularly where those services are provided to vulnerable people. OurExecutive Board has worked to balance need, service provision and availableresources in difficult financial circumstances. Consultation on our budgetproposals was extensive with detailed annexes summarising contributionsfrom the Public, Scrutiny Boards and other Organisations included in ourbudget setting reports to Executive Board and full Council.

3.48 Our decision-making reports give evidence of the public consultation we haveundertaken and the engagement that has taken place. Significant engagementactivities have taken place during the year relating to:

  • Best Council Plan;
  • Budget;
  • Polling districts and places;
  • Community Asset Transfers;
  • City Centre Vision and Our Spaces Strategy;
  • Leeds Bradford Airport Transport Infrastructure;
  • Increases in Learning Places;
  • Air Quality;
  • Core Strategy and Housing Allocations.

Ensure that we have robust and effective audit, scrutiny, informationgovernance, risk and financial management controls.

Finance Management – Strategic Landscape

3.49 The economic context in which public spending must be considered continuesto be very much dominated by the debate concerning the impact of the EUreferendum and the strength and resilience of the national economy. This isalso set against, between the 2010/11 and 2019/20 budgets, our core fundingfrom Government being reduced by around £266m. Additionally we havefaced significant demand-led cost pressures, especially within Adult SocialCare and Children’s Services.

3.50 To date, we have responded successfully to these challenges through acombination of stimulating good economic growth, creatively managingdemand for services, increasing traded and commercial income, growingcouncil tax from new properties and a significant programme of organisationalefficiencies, which has resulted in a reduction in head count of 3,300 or over2,600 full time equivalent employees since 2010.

3.51 The environment in which local government operates continues to be onewhich presents significant financial challenges to us with some areas ofsignificant uncertainty after 2019/20 which is the period covered by theCouncil’s Medium Term Financial Strategy. The implications of theGovernment’s future spending plans with regard to Local Government andother areas of the public sector from 2020/21 onwards remain unknown andtherefore it is unclear to what extent “austerity” will continue after 2019/20.

3.52 Whilst it is the Government’s intention to implement 75% business rateretention nationally in 2020/21 and consultation has been launched whichfocuses upon principles, it is unclear what the implications of any proposedreforms would be upon the Council. Similarly the Government has launchedits Fair Funding Review of the methodology that determines local governmentfunding baselines; based on an assessment of relative needs and resources,the approach has not been refreshed since 2013/14.

3.53 The outcome of this review won’t be known until the autumn of 2019 throughthe 2020/21 finance settlement and will inform the level of resources availableto support budgets from 2020/21 onwards. Adding to the uncertainty is thedelay in the publication of the Government’s Green paper on adult social carewhich will hopefully provide greater certainty around their future fundingintentions for adult social care. Following the publication of the NHS LongTerm Plan in January 2019 it was announced that the Green Paper would beissued by April 2019 although this timescale has slipped.

3.54 Recognising the financial challenge detailed in the Medium Term FinancialStrategy 2019/20 – 2021/22 received at Executive Board in July 2018, and inorder to protect front line services as far as possible, especially those thatprovide support to the most vulnerable, in 2018/19 the council embarked upona number of cross-cutting budget work streams that will contribute towardsbridging the estimated budget gaps over the period of the Strategy.

3.55 With regard to 2019/20, savings of £3.2m will be realised, largely through boththe application of benchmarking to inform where cost efficiencies/additionalincome can be realised and further efficiencies through the digitalisation ofprocesses across a number of different services. Further consideration of theMedium Term Financial Plan was given by the Executive Board in July 2019.

Key Action: We will ensure that we continually review the financiallandscape in order to alleviate the uncertainty and challenge to thedelivery of our ambitions and our financial planning.

Financial Management – Oversight and Budget Management

3.56 Our Section 151 Officer has established an effective overall financial controlenvironment framework for financial planning and exercises effective financialmanagement and control which both discharge statutory responsibilities andare consistent with the Chief Financial Officer protocol which forms part of theCouncil’s constitution.

3.57 Our Executive Board has received monthly monitoring reports during theyear which set out the actions necessary to reduce net spend through thedelivery of £34m of budget action plans (by March 2019). The reports identifyactions that are on track to be delivered and highlight where in-year pressureshave been identified along with the planned measures so that a balancedbudget position can be delivered. The final financial outturn received byExecutive Board in June 2019 reflected a planned underspend of £3m. The2018/19 budget assumed a contribution to the general reserve of £1.0m.However this planned final outturn underspend results in a net contribution tothe general reserve of £2.3m. This planned contribution to the Council’sgeneral reserve will ensure that the Council continues to remain financiallyresilient. The Housing Revenue Account also projects a small underspendand this has been brought into a balanced budget position after reviewing theuse of HRA reserves. The Executive Board also receives updates on theTreasury Management and the Capital Programme in year. Treasury activityduring the year was conducted within the approved borrowing limits for theyear and resulted in overall savings to the revenue budget.

3.58 Our Corporate Governance and Audit Committee considered our financialmanagement arrangements in March 2019 and concluded that they are fitfor purpose, up to date, embedded and are regularly complied with. Inreaching this view committee members took account of a number of rigorousreviews and assessments undertaken, including;

  • Internal Audit provide annual assurances on the major financial systemsand controls.
  • Member scrutiny via Scrutiny Boards, Executive Board and Full Councilensures that the budget continues to meet the council’s priorities andobjectives. In addition, Corporate Governance & Audit Committeeapproves the Council’s accounts.
  • Officer review of the financial strategy, annual budget and in-year budgetmanagement and monitoring processes through the Financial StrategyGroup, Finance Performance Group, Directorate leadership teams and theCorporate Leadership Team.
  • Officer review of the adequacy of the control arrangements through thecorporate Financial Integrity Forum.
  • External Audit evaluated the Council’s key financial systems as part oftheir audit work in respect of the 2018/19 audit. They also provide anopinion in respect of the Council’s financial resilience.
  • Treasury Management activities operated within the governanceframework and comply with the CIPFA Treasury Management Code ofPractice, Prudential Code and relevant guidance notes.

Key Action: The financial management arrangements will continue to bekept under review during the year.

Business Continuity

3.59 Of vital importance to us, is ensuring that we have arrangements in place toensure our critical services can recover quickly from serious untowardincidents, such as the O2 outage in 2018. Our CGAC has received assurancein March 2019 that our business continuity plans are in place for all ourcritical services and that these are subject to continuous review. TheCommittee concluded that our arrangements remain up to date, fit forpurpose, effectively communicated, routinely complied with and monitoredand that the arrangements meet the council’s statutory duties as required bythe Civil Contingencies Act 2004. This is achieved by:

  • Engagement and close working with the West Yorkshire Resilience Forum.
  • Continued monitoring and identification of risks and development ofmeasures to mitigate the risks should they occur.
  • Continued review and revision of Business Continuity Plans for ourprioritised services and functions through the annual review cycle, whichthis year included a review of all plans as part of our Brexit riskmanagement arrangements.
  • Participation in exercising and training both internally and externally withpartner agencies.
  • Maintaining directorate engagement with and ownership of businesscontinuity arrangements through the Directorate Resilience Groups.
  • Providing guidance and support to commissioned service providers inrelation to business continuity.
  • Providing business continuity advice and assistance to businesses and thevoluntary sector.
  • Maintaining effective systems for public awareness and warning andinforming.
  • Development of new and enhanced existing collaborative workingarrangements with partner organisations.

Risk Management

3.60 Our Risk Management arrangements set out our commitment to a riskmanagement framework that enables staff and elected members to identify,understand, manage and report on strategic and operational risks that couldimpact upon delivery of the Best Council Plan. As part of our decision-makingarrangements, all reports for key and Significant Operational decisionsconsider risk management.

3.61 The council’s most significant risks are captured in the Corporate RiskRegister and are regularly reviewed by our Corporate Leadership Team. Acorporate risk map is updated and published each quarter and seniorpoliticians continue to be briefed on key risks. The Corporate Risk Registercontinues to document the most significant risks with seven ‘standing’corporate risks being:

  • Safeguarding children
  • Safeguarding adults
  • Health and safety
  • City resilience
  • Council resilience
  • Financial management (both the risk to the in-year budget and longertermfinancial sustainability)
  • Information management and governance

3.62 An annual assurance report is provided to both our Executive Board andCGAC on the council’s risk management arrangements, being received inJune and July 2019 respectively. The annual report explored the extent towhich our risk management arrangements are embedded with corporate,directorate, programme and project risk registers and how significant risks areescalated as necessary. The report also provided detailed assurances oneach of the risk areas, covering an overview, description of the risks, the latestrisk assessment, current arrangements in place to manage them andadditional activity planned. Two further risk assurances have also beenadded: the first detailing how the authority manages its statutory requirementto provide sufficient school places to the children and young people ofLeeds; the second explains how it protects itself against the risk of a majorcyber incident.

3.63 Our CGAC has considered the council’s preparations for the UK’s exit fromthe European Union. The report demonstrated that we have considered thepotential impact on both council services and the wider city. Our approachhas been proactive in looking to implement a response plan to deal with theuncertainty and help guide the council and city’s response. Our plan hasbeen designed to be adaptable to a range of scenarios including a moreprolonged period of uncertainty. In March 2019, an updated report on thecouncil’s and city’s preparations and corresponding strategic response planwas considered by the Executive Board.

Information Governance

3.64 Significant work on information management and information governance hasbeen undertaken to strengthen management of our information assets, torespond to external requirements and to identify opportunities for efficiencyand other value gains in the management of information.

3.65 As regards information access and compliance our Corporate Governanceand Audit Committee has been assured in March 2019 that processes andprocedures are in place regarding upholding citizen rights to requestinformation and that we operate within the Information Commissioners Office(ICO) thresholds for response times. Assurance has also been received thatwe are compliant with current Data Protection legislation and that work hasbeen completed enabling formal closure of our GDPR Implementation Project. Work to ensure compliance with the Regulation has been embedded asbusiness as usual. Within that context of information governance we havealso separately reviewed the Caldicott Guardian arrangements in place withinthe council.

Key Action: That a combined Annual Information GovernanceAssurance report be prepared that includes oversight of the CaldicottGuardian role and that in the interim Caldicott governance arrangementsbenefit from a peer review by organisations with the sameresponsibilities.

3.66 We have reported one data security incident to the ICO. In evaluating thecircumstances the ICO advised us that our response to the data breach wasappropriate and helped ensure that the impact was mitigated – the ICOdecision was that no further intervention was necessary. Our CGAC wasassured that information governance practice and procedures are beingmanaged and allow the council to work with partner organisations, thirdparties and citizens in a clear, transparent, but safe and secure way. Thearrangements are also positively contributing to protect us from enforcementaction and help to mitigate the impact of cyber incidents aimed at attackingand/or bringing down our information systems. The committee has alsoreviewed our approaches to password policies.

3.67 Significant work has been undertaken to enable us to become compliant withthe more stringent compliance control arrangements to meet the PublicServices Network (PSN) certification requirements. That work continues toensure PSN compliance when we re-submit for certification in July 2019. Weexperienced a dip in performance in responding to Freedom of Informationrequests at the end of 2018 and in response established a single centralrequests team to handle all information requests – this provides for greaterresilience in handling the large numbers of information requests that wereceive.

Key Action: Our Corporate Governance and Audit Committee willregularly review plans to deal with outstanding and emerging issuesrelating to PSN Certification.

Scrutiny

3.68 Scrutiny arrangements are operating in accordance with the terms ofreference and procedures agreed by full council with inquiries both addingvalue to the delivery of the council’s outcomes and providing challenge to theExecutive. Following a review of those arrangements the Annual Councilmeeting approved amendments to the Scrutiny Board Procedure Rules. Anannual report relating to the Council’s activities was presented to full Councilin July 2019. The Council sees Scrutiny as a key performance tool inensuring that the Council meets its best city ambitions. The proportion of workundertaken by Scrutiny Boards that relates to pre-decision Scrutiny and thedevelopment of new policy is testament to the value placed upon ScrutinyBoards by the Executive to help inform what are often high profile andsensitive decisions to be made.

3.69 Scrutiny Boards have also continued to demonstrate their unique strength inbringing together a wide range of sectors and service users to identifysolutions in addressing complex and often challenging cross cutting issues.Notable inquiries completed during the year have been on:

  • Dementia
  • Men’s Suicide: The impactof problem gambling
  • Child and AdolescentMental Health Services
  • Provision and quality ofhomecare services
  • Adults Safeguarding
  • Is Leeds a Child FriendlyCity?
  • Kerb Collection ofDomestic Waste andRecycling
  • Inclusive Growth StrategyImplementation withspecific focus onEmployment - inquiry
  • Embracing Digital TechSolutions
  • Maximising theApprenticeship Levy
  • Management and financialimpact of council ownedvoid properties.

3.70 Work undertaken by Scrutiny is a key element in the continuous review of ourgovernance arrangements and assists in ensuring that they are up-to-dateand fit for purpose in focusing resources on outcomes and ensuring counciltax payers and service users receive excellent value for money. During2018/19 the Government has been reviewing National guidance for Scrutinythis was issued in late May 2019.

Key Action – we will review the Guidance for Scrutiny issued byGovernment in May 2019 and report to Members any implications orproposals for change.

Ensure we have clear responsibilities and arrangements for transparent andeffective accountability.

Electoral Arrangements

3.71 The Electoral Registration and Administration Act 2013 introduced a changeto the timing of compulsory reviews of UK Parliamentary polling districts,places and stations meaning a compulsory review must take place between 1October 2018 and 31 January 2020. We commenced and concluded thereview this year in order for all changes to be implemented in time for theLocal and Parish/Town Council Elections on Thursday 2 May 2019 (and anyother elections or referendums which should take place on or after that date).Internal Audit have also reviewed the processes in place to ensure theintegrity of information contained in the Electoral Roll and reported goodassurance to the CGAC in January 2019.

Delegations and Sub Delegation

3.72 Executive leadership arrangements (including Executive Member Portfoliosand Executive delegations to officers) were reported to our Annual Meeting.The Annual Council meeting also approved committee governance, officerdelegations and outside body appointments. The City Solicitor has alsoprovided assurance that the Council’s Constitution has been kept up-to dateduring the year.

Partnership Arrangements

3.73 Partnerships and other joint working arrangements with external bodies forman increasing element of our activities, providing challenges in terms oftransparency, demonstrating accountability and managing risk. These include:

  • West Yorkshire Combined Authority (WYCA)
  • West Yorkshire Joint Services
  • North and West Yorkshire Business Rates Joint Committee
  • West Yorkshire Adoption Joint Committee
  • West Yorkshire Joint Health Overview and Scrutiny Committee
  • West Yorkshire Police and Crime Panel
  • Health and Wellbeing Board
  • Partner Executive Group
  • Integrated Commissioning Executive
  • Leeds Plan Delivery Group
  • Leeds Children and Families’ Trust Board
  • Safeguarding:The Leeds Safeguarding Children Partnership & Leeds Safeguarding Adults Board
  • Safer Leeds Executive
  • West Yorkshire Resilience Forum
  • Third Sector Partnerships
  • Leeds Strategic Housing Partnership
  • Connecting Leeds Expert Advisory Panel
  • Inclusive Growth Delivery Partnership

3.74 Partnerships reviewed/established during the year by Executive Board haveincluded arrangements with:

  • West Yorkshire and North Yorkshire Councils concerning Business RatePooling
  • West Yorkshire Joint Services
  • West Yorkshire ‘One Adoption’
  • Leeds City Credit Union
  • West Yorkshire authorities regarding Urban Traffic Management andControl
  • London and Continental Railways

3.75 The Corporate Governance and Audit Committee received assurances fromthe Chief Officer Financial Services that the Corporate Financial IntegrityForum has the oversight of the financial governance risk of partnerships andother joint working arrangements within its remit.

Key Action: Internal Audit Plan will review our governance arrangementsfor partnerships

Key Action: We will aim to develop guidance to help ensure there is aconsistent and effective approach across the authority for managingrisk with partners.

3.76 We have also fully participated in the work of the West Yorkshire CombinedAuthority, and in doing so have, with our neighbouring local authorities,reviewed and streamlined other aspects of regional governance.Collaborative working is taking place across the region to support progressivenegotiations with HM Government for a devolution deal for the region. Giventhe importance of this, full Council receives a regular update report on thedevolved matters; allowing cross party engagement and debate on thisevolving area.

3.77 Our Health and Wellbeing Board has provided an open and transparentforum through which joint work on improving health and wellbeing isprogressed. The Health and Wellbeing Board has considered and providedan opinion on whether the NHS Leeds Clinical Commissioning Groups takesproper account of the outcomes set out in the Leeds Health and WellbeingStrategy and has agreed an approach to review the operational plans during2018-2019. Our full Council meeting has considered the minutes of the Boardto enable wider member engagement.

3.78 A West Yorkshire Adoption Joint Committee has been appointed by thefive West Yorkshire authorities to have oversight of the regional adoptionagency “One Adoption West Yorkshire”. The Committee is responsible forensuring that the adoption services (including the recruitment and approval ofpotential adopters; identification of potential matches between children andadopters; and the provision of adoption support services) are carried outsafely, effectively and efficiently. Our Executive Board has reviewed theoperation of the new arrangements and resolved that annual assurancereports are considered in future by the Joint Committee.

3.79 In October the Chancellor announced investment of £84m over the next fiveyears for the Department for Education’s Strengthening Families, ProtectingChildren programme. Along with North Yorkshire and Hertfordshire we are atthe forefront of arrangements to support a number of under-pressure localauthorities to improve their social work practice and decision-making, so that –when it is in their best interests – children can stay safely at home, thriving ina stable family environment. We continue to work collaboratively with theDepartment of Education on how we can best operationalise theStrengthening Families, Protecting Children programme.

3.80 The delivery of our Best Council Plan priorities is dependent on effectivepartnership working and an enabling approach which encourages all partnersto play an active role and make maximum impact in the city. Maintaining anddeveloping the range, reach, capacity and skill of the third sector is critical tothe delivery of the Best Council Plan. Leeds has a large and diverse thirdsector with over 3500 organisations from the smallest neighbourhoodcommunity groups to major providers of services and we are recognised as acentre for best practice for our partnership working with the third sector.

3.81 Our Inclusive Anchors programme brings together a range of institutions totake collective action on employment matters including pay, terms andconditions and health and wellbeing, and procurement and supply chainmanagement. Local institutions signed up in principle to working individuallyand collectively on an anchors programme include - Leeds City College,Leeds College of Building, the University of Leeds, Leeds Beckett University,Leeds Trinity University and Leeds Community Healthcare, Leeds TeachingHospitals NHS Trust and Leeds and York NHS Foundation Trust.

Key Action: Further work will be undertaken to extend the InclusiveAnchors programme beyond the largely publicly funded anchors toprivate sector businesses and exploring the development of an inclusivebusiness charter for SME businesses with a particular focus onencouraging more employers to pay the Living Wage as promoted bythe Living Wage Foundation.

Safeguarding

3.82 Our Executive Board considers regular reports on our safeguardingarrangements. The reports consider whether systems and practices are inplace to safeguard adults and children at risk. A Cross Council SafeguardingBoard also works with representatives from the Leeds Safeguarding ChildrenPartnership, Safer Leeds Executive and Leeds Safeguarding Adults Board topromote and embed safeguarding awareness and training across the council.The board oversees the network of Safeguarding Lead Officers: nominatedindividuals from within directorates who have a specific focus on helping thedirectorate to continually think about how to keep colleagues and members ofthe public safe from harm.

3.83 The government has recently accepted recommendations of the ‘WoodReview’ concerning the operation of Local Safeguarding Children Boards. TheLeeds Safeguarding Children Partnership, senior representatives of the threemain agencies and the Children and Families Trust Board have been workingon the development of the new arrangements, in response to therecommendations over the past 12 months with outline proposals nowdeveloped.

3.84 These emerging proposals for new multi-agency safeguarding arrangementsshould continue to strengthen and streamline the already strong and effectivepartnership working in Leeds. The new arrangements will bolster and clarifythe shared leadership of the Council, NHS and Police whilst ensuring thereare the right partnership arrangements in place to engage and support widerpartners and the whole city in this vital work.

Key Action: Our Executive Board will review the arrangements in theautumn.

Take informed and transparent decisions.

3.85 Our decision-making arrangements are one of our key governance controls,linking to all the governance principles that are set out in our Code ofCorporate Governance. The annual report to our Corporate Governance andAudit Committee (June 2019) considered assurances relating to whetherdecision making arrangements remain up-to date, fit for purpose and arefunctioning well.

3.86 In particular, assurances were provided that systems and processes exist andare used to review and maintain the framework that requirements in relation topublication of decisions are embedded and routinely complied with, that keyperformance indicators are regularly monitored and that steps are taken towork positively and transparently. In considering assurances around thePlanning decision making framework, Members undertook to review furtherthe existing delegation scheme as well as the arrangements in place forEnforcement of decisions/conditions taken under the planning system.

Key Action: The arrangements whereby, Members may referapplications to Plans Panel for determination and the governancearrangements for Enforcement will both be reviewed by our CorporateGovernance and Audit Committee

3.87 During the year we have reviewed the processes and financial thresholds forExecutive decisions with a view to simplifying the arrangements in place whilstalso ensuring compliance with relevant legislation, supporting the democraticoversight provided by members whilst also allowing the authority to be agileand responsive. The changes take effect from 1st July 2019.

Key Action: The implementation of our new decision making will beeffectively communicated with arrangements monitored during the yearand reported back to the Corporate Governance and Audit Committee

3.88 During 2018/19 CGAC also reviewed the operation of the decision makingarrangements within Children’s Services where opportunities forimprovements in decision administration were identified.

3.89 Our report template helps to ensure that governance considerations form akey element of our decision making processes. Key to this is the need tospecifically address:

  • Consultation and Engagement
  • Equality and Diversity / Cohesion and Integration
  • Council policies and the Best Council Plan, specifically including Climate Change, Inclusive Growth and Health and Wellbeing
  • Resources and value for money
  • Legal Implications, Access to Information and Call In
  • Risk Management

3.90 The City Solicitor (as the Senior Responsible Officer for the Regulation ofInvestigatory Powers Act ‘RIPA’) has provided ongoing assurance (via aregular commentary in Internal Audit reports) to our CGAC that the councilhas complied with the requirements of the RIPA 2000 – both as regardsdirected surveillance and the use of covert surveillance sources and also asregards the acquisition and disclosure of communications data.

Develop our capacity and capability to be effective.

Elected Members

3.91 As community leaders, it is vital that our councillors are supported to be aseffective as possible. This was particularly important following the 2018 alloutelections in Leeds where a large number of new councillors were elected.The role of an elected Member on Leeds City Council is essential to the wellbeingof the city, but it is also very demanding and complex. In order to leadthe organisation and city, and continually improve performance, Membersrequire a dedicated learning and development strategy.

3.92 An induction programme and a variety of learning programmes are in placeand are continually monitored and evaluated by our Member ManagementCommittee.

Key Action: Our Member Development Strategy will be reviewed during2019/20

3.93 In order to sit on the Plans Panels members must complete mandatorytraining; 100% of Panel members completed this training in 2017‐18. CouncilProcedure Rules allow flexibility around the appointment of substitutes toPlans Panels subject to members having the appropriate training and abide bythe Planning Code of Good Practice. All members substituting on the PlansPanels have received this training. In addition, the service has started on itsroll out of workshop style training for members with the first on tall buildingsbeing delivered. A programme of training will be developed for 2019.

Employees

3.94 Scenario planning for our future workforce and skill requirements remains akey consideration for us, particularly in light of demand changes, externalfactors such as Brexit, budget pressures and changes in the way we work.The digital landscape is a central factor shaping all workplaces (and sectors)which will facilitate different ways of delivering services and how work isundertaken.

3.95 Building upon the changes that were made last year, this year’s appraisalformat continues to support a high quality discussion that is open, honest andsupportive.

Some key points to note are:

  • Appraisal objectives are back in the appraisal record (rather thanseparate as in 2018)
  • The person-centred format has been continued with open, probingquestions
  • Wellbeing is a core theme throughout
  • The paper appraisal form mirrors the online appraisal record
  • The management development offer provides sessions that managerscan attend to enhance their skills in conducting quality appraisalmeetings.

Latest mid- year completion rate was 93.4% (end of December 2018).

3.96 The use of apprenticeships to develop new skills and talent is an increasinglyimportant part of our workforce strategy. We have grasped the opportunityprovided by the Apprentice Levy to work differently as an employer. In recentmonths we have developed our Apprenticeship Programme within the Councilfrom supporting a handful of apprenticeship frameworks, mostly at entry levelfor traditional roles, to managing apprentices spanning over 70 differentframeworks and standards, from Level 2 – Level 7, across the Council.

3.97 To assist in addressing engagement survey results and in order to provide aclear leadership career pathway, we have introduced a leadership &management apprenticeship programme that contributes to the widermanagement development programme. This programme invites colleagues toapply for apprenticeship development specifically across managementapprenticeship standards from levels 3 to 7. The initial cohort was launched inSeptember 2018 and 180 members of staff are now on the programme. Afurther cohort will start in September 2019.

3.98 The DfES have set a public sector apprenticeship target to which we will haveto give due regard. This is 2.3% of our head count. Meeting the target on anannual basis means employing over 500 Apprenticeships: 350 in LCC and200 in schools. With such great strides in development of apprenticeships andpathways for our workforce we must now work on maintaining this positivestart and ensure the link between apprenticeships and our workforcedevelopment strategy stays strong, the Levy is spent effectively and our publicsector target continues to be met.

Key Action: To sustain our Apprenticeship approach we will:

  • a. Improve identification and forecasting through work-forceplanning, setting out where our future Apprentices will come from.
  • b. Look at how we use opportunities to support priority groups toaccess work with us – especially with entry level Apprenticeships.
  • c. Ensure that meeting the target also reconciles with the resourceswe have via the Levy.

Health and Safety

3.99 Our health and safety team deliver or advise on a range of training anddevelopment to ensure that we meet our statutory obligations and that allemployees have the necessary knowledge and skills to carry out their rolessafely. The Head of Health and Safety has monthly assurance meetings withthe Director of Resources and Housing to discuss Health and Safetyperformance and the high hazard group meets quarterly to discuss prioritiesand share details of any incidents and good practice across services. Theannual health and safety report which provides assurance on health, safety &wellbeing is presented to our Corporate Leadership Team and the CorporateHealth and Safety Priority Board each year. The annual report highlightsHealth and Safety performance across the year and also identifies newpriorities and strategies for the coming years. This was considered by ourExecutive Board in July 2019.

3.100 The Committee on Standards in Public Life reported in 2017 on theintimidation experienced by Parliamentary candidates, and others in publiclife, and how this has become a threat to the diversity, integrity, and vibrancyof representative democracy in the UK. The health and safety of ourelected members is of paramount concern to us and we have approachedrequests from Members to have their residential address withheld frompublication sympathetically when actual or potential threats of violence orintimidation have been brought to our attention. Unfortunately the number ofthese instances has continued to increase.

3.101 We have introduced personal safety measures for elected members includingall members having the opportunity of being provided with a safe lone workingdevice. In addition, we provided all members with personal safety briefingsand provide a specific session on “Keeping Safe – Members Personal SafetyYour Skills” as part of our revised member induction programme.

Key Action: We will keep the arrangements for Member Safety underreview during the year through our Member Management Committee.

An Independent opinion of effectiveness

3.102 CGAC receive updates on audit activity and progress in meeting the auditplan at each of their meetings. The annual report from the Head of InternalAudit reported on the control environment within the council and provided thefollowing opinion about the adequacy of the systems and processes in place.

“Head of Audit opinion for 2018/19

On the basis of the audit work undertaken during the 2018/19 financial year,the internal control environment (including the key financial systems, risk andgovernance) is well established and operating effectively in practice.

We have audited several areas that have resulted in ‘Limited Assurance’opinions and we have highlighted weaknesses that may present risk to thecouncil. In these cases, we have made recommendations to further improvethe arrangements in place. Although significant to the control environment inplace for the individual system areas that have been audited, theseweaknesses are not material enough to have a significant impact on theoverall opinion on the adequacy of the council’s governance, riskmanagement and control arrangements at the year end. A satisfactory overallopinion is provided for 2018/19, based on the audit work detailed within thisreport. The outcomes of the audit work that supports this opinion have beenreported to Members of the Corporate Governance and Audit Committeeduring the year.

The audit work undertaken to support this opinion has been conducted inaccordance with an established methodology that promotes quality andconformance with the International Standards for the Professional Practice ofInternal Auditing.”

3.103 The CQC is the independent regulator of health and adult social careservices across England – aiming to ensure health and social care servicesprovide people with safe, effective, compassionate and high-quality care, andencouraging care services to improve where necessary. As the regulator, theCQC produce reports based on their inspection process for care providers in arange of settings, including residential and nursing homes across the city.

3.104 The CQC undertook a review of health and social care services in Leedswhich was reported in December 2018. The Leeds review was undertaken inOctober and followed a programme of 20 reviews carried out between August2017 and July 2018. The review concluded that system leaders in Leeds hada shared vision that was supported and understood across health and socialcare organisations, with a shared understanding of the challenges ahead.Reviewers found that there was a good voluntary, community and socialenterprise sector in Leeds with many opportunities for people to receivesupport, particularly for people at risk of social isolation and loneliness.

3.105 Our Scrutiny Board Adults and Health continues to monitor the quality of careacross the city and support the drive in care quality. Council Officers and CQCofficials have attended the Scrutiny Board to answer questions from itsmembers, and provide assurance on improvement actions and processes.

Key Action: We will deliver an action plan with our partners to addressareas of improvement highlighted by the CQC in their review of healthand social care services in Leeds.

3.106 In December the Office for Standards in Education, Children’s Services andSkills (Ofsted) reported on their inspection of our social care services tochildren. The judgement of the inspector is that these services areOutstanding.

3.107 Ofsted noted that children and families in Leeds are receiving a consistentlygood service which ensures that their needs are met at the right time by theright service. Well-established multi-agency partnerships aim to meet theneeds of children and families at the lowest level of intervention. A clear focuson providing support at the earliest opportunity is helping families to makechanges before concerns increase.

3.108 Ofsted concluded that leaders have established a well-understood practicemodel that promotes child-centred work and productive working relationshipsbetween workers and families, as well as giving a clear overview of theoutcomes desired. The inspector also reported that we are a committedcorporate parent and that we are ambitious for our children, that weencourage children to realise their potential and that we celebrate theirachievements with substantial progress being made on delivering our vision tomake Leeds a child-friendly city.

3.109 The Ofsted inspection set out a number of areas (already known to us) forimprovement.

  • The consistent involvement of health agencies in strategy discussions.
  • The consideration given to children’s culture and identity in allassessments.
  • The quality, recording and review of personal education plans (PEPs) sothat they provide clear, consistent and purposeful targets, covering bothshort- and longer-term objectives.
  • Pathway planning to be better reflected in case records and pathway plansto be reviewed to ensure that they are meaningful documents for youngpeople.

3.110 It is important that this Ofsted judgement does not lead to complacency and aslowing pace of reform.

Key Action. We will, through the delivery of our Service ImprovementPlan, build on the city’s recent progress and seek to continually improveservices for children and families in the city. Our plan sets out how wewill achieve these ambitions.

3.111 In 2018 Grant Thornton took over the External Audit role for Leeds CityCouncil from KPMG. Our CGAC has considered the approach and process oftransition between the two Audit teams and received assurance that thehandover had been completed in accordance with the processes laid out byPublic Sector Audit Appointments (PSAA). Marzars have been appointed toprovide the audit and an opinion on the Housing Benefit Subsidy claim.

3.112 Grant Thornton are required to consider whether our Annual GovernanceStatement does not comply with the ‘Delivering Good Governance in LocalGovernment: Framework (2016)’ published by CIPFA and SOLACE orwhether it is misleading or inconsistent with the information of that they areaware from their audit. Grant Thornton has confirmed that they have nothingto report in this regard.

3.113 Grant Thornton also have a responsibility to issue an audit opinion in relationto our Accounts and Value for Money arrangements. This assesses whetherwe have made proper arrangements to ensure we took properly informeddecisions and deployed resources to achieve planned and sustainableoutcomes for taxpayers and local people.

3.114 As part of their work on the Council’s overall control environment each year,the External Auditor’s IT specialists carry out audit work on the council’s ITcontrols. Grant Thornton completed and reported their assessment of ourarrangements and resulting recommendations to our CGAC in June 2018.

3.115 Although our previous auditor KPMG issued an audit opinion for our 2016/17& 2017/18 accounts confirming that they presented a true and fair position, atthe time our Corporate Governance and Audit Committee approved the 2018Annual Governance Statement the audit for that year had not yet been closedpending resolution of an objection made by a local elector.

3.116 The objection concerned the lawfulness of the council’s borrowing via LOBO(Lender Option Borrower Option) loan instruments. We can report in thisStatement that KPMG were satisfied with the Council’s treatment of theseloans and issued an audit closure certificate for both 2016/17 and 2017/18.We can also report that KPMG’s final audit report on the certification of grantclaims and returns was successfully completed and confirmed that, whilst anumber of minor errors in the Housing Benefit Subsidy claim were identifiedwhich required qualification and amendment, the final approved claims weresubmitted to the relevant granting organisation.

3.117 The Local Government and Social Care Ombudsman’s (LGSCO) Annual letterto the authority was received by our Chief Executive on the 24th July 2019, justprior to this Statement being considered by our CGAC. Slightly fewercomplaints were referred to the LGSCO this year than last, 180 this year against194 last. A key indicator for us is the ‘uphold rate’ (this relates to the numberof detailed investigations which resulted in the complaint being upheld) – lastyear this was 66% this year 46%. The LGSCO has also introduced a newindicator this year to illustrate the percentage of complaints that were ‘upheld’where what we offered the complainant was deemed by the LGSCO as asatisfactory way to resolve the matter prior to them receiving the complaint.Five percent (1 of 21 upheld complaints) were judged by the LGSCO to fall intothis category in 2018/19.

4. Assurance conclusion

4.01 Good governance is about running things properly and ‘doing the right thing’.It is the means by which we show we are taking decisions for the good of thepeople of the area, in a fair, equitable and open way. It includes how we dothings, including our values and standards of behaviour that support gooddecision making - collective and individual integrity, openness and honesty.Good governance is the foundation for the delivery of good quality servicesthat meet all local people's needs. It is also fundamental to showing publicmoney is well spent as well as maintaining credibility and public trust. Withoutgood governance we will not achieve our ambitions to improve services andoutcomes for local people.

4.02 From the review, assessment and on-going monitoring work undertaken andsupported by the work of Internal Audit, we have reached the opinion that,overall, key systems are operating soundly, that there are no fundamentalcontrol weaknesses and that where improvements have been identified,actions are in place.

Signatories to this statement

4.04 We can confirm, to the best of our knowledge and belief, and there havingbeen appropriate enquiries made, that this interim statement provides anaccurate and fair view.

Councillor Judith Blake,Leader of the Council

Tom Riordan,Chief Executive

Councillor Andrew Scopes,Chair Corporate Governance andAudit Committee

Victoria Bradshaw,Chief Officer Financial Services& Section 151 Officer

Catherine Witham,City Solicitor& Monitoring Officer