Annual Governance Statement

Financial Year

2023-2024

Executive Summary

The Annual Governance Statement is a commitment to, and a review of, the effectiveness of our governance arrangements against the seven core principles identified in Delivering Good Governance in Local Government Framework 2016 (Chartered Institute of Public Finance & Accountancy (CIPFA) and Society of Local Authority Chief Executive�s (SOLACE)).

Appendix A provides evidence of how we have met the principles in 2023/24. We are satisfied that the Council has the appropriate systems and governance arrangements in place when considering the seven principles.

A diagram of a circular diagram

Description automatically generated

Description: Diagram showing the CIPFA & SOLACE principles

Introduction

Effective governance arrangements ensure that the Council is doing the right things, in the right way for the benefit of our residents in a timely, inclusive, open, honest, and accountable manner. Governance is the system by which the organisation is controlled, operates and the mechanisms by which it, and its people are held to account.

The Annual Governance Statement evaluates the effectiveness of our governance arrangements and our system of internal control for the previous financial year. It provides an opinion on whether the current governance arrangements are fit for purpose.� When producing this statement, information has been prepared with input from the Chief Executive, Directors (including Section 151 Officer), Monitoring Officer and Heads of Service. The statement has also been reviewed and endorsed by the Leader of the Council and Audit Governance and Standards Committee.�

The Council also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness. This Annual Governance Statement also meets the requirements of the Accounts and Audit Regulations 2015, regulation 6(1) which requires an authority to conduct a review of the effectiveness of its system of internal control and the duty to prepare an annual governance statement.

The Annual Governance Statement is published, to report publicly on the extent to which we comply with our own Local Code of Corporate Governance, including how we have monitored the effectiveness of our arrangements in year and on any planned changes to our governance arrangements in the coming year.

The Council acknowledges its responsibility for ensuring that there is effective governance within the Council and as such has developed a Code of Corporate Governance that defines the principles and practices that underpin the governance arrangements operating within the Council. �The Council approved and adopted a Local Code of Corporate Governance in 2017 which has been updated regularly with the last revision in November 2023. The code is consistent with the principles of the Chartered Institute of Public Finance & Accountancy (CIPFA) and Society of Local Authority Chief Executive�s (SOLACE) Framework Delivering Good Governance in Local Government Guidance Notes for English Authorities 2016. Despite the challenging financial challenges, it is important to put residents at the heart of services we are providing and to get the basics right.

Compliance is assessed against the seven core principles identified in Delivering Good Governance in Local Government Framework 2016 (Chartered Institute of Public Finance & Accountancy (CIPFA) and Society of Local Authority Chief Executive�s (SOLACE)). Each principle is assessed in turn in appendix A, with identification of whether any further action is needed, this is added to the action plan for 2024/25.

Governance Model

In discharging this responsibility, the Council is responsible for putting in place proper arrangements for the governance of its affairs, and facilitating the effective exercise of its functions, which includes arrangements for the management of risk.

The Three Lines of Assurance

The Three Lines of Assurance model identify the different sources of assurance within the Council. Each of the categories contributes to an overall level of assurance, as shown in the diagram below.

Application of the Three Lines Model | Corporate governance | Technical guidance | IIA

1. The First Line � the functions that own and manage risks at an operational level. This includes responsibility and accountability for directly identifying, assessing, controlling and mitigating risks for example managers and Heads of Service. Appendix A, provides an assessment of the effectiveness of this first line of defence using information from the leadership team through survey and discussion.

2. The Second Line - functions that oversee risk and ensure compliance. This line monitors the effectiveness of risk management arrangements put in place by the first line, for example HR, Finance and IT functions.

3. The Third Line - functions that provide independent assurance on the management of risks for example Internal Audit. Internal Audit have identified a number of areas of strength and a number of areas where improvement is needed theses are set out below and follow up on recommendations for improvement will be in the action plan for 2024/25:

� Subsidiary Company Governance

The Council�s governance arrangements with Maidstone Property Holdings (MPH) were reviewed against recent, national guidance from CIPFA (Local Authority owned companies: A Good Practice Guide). There were significant issues in relation to:

♦ Conflict of interests of board members, who are also council officers.

♦ Weaknesses in the Business Plan, Articles of Association and the Operational Agreements.

♦ Key documents are out of date.

♦ Governance arrangements around meetings, performance management and risk management need to be reviewed and updated.

� Grounds maintenance

Areas of weakness were identified in relation to a lack of Health and Safety Policies and procedures specifically for Grounds Maintenance related work and risk assessments being out of date. There were also areas from improvement identified relating to training records and asset register/ equipment inventory.

� Facilities Management

The audit focused on the arrangements in place between the Council and Fidum, as the facilities management provider for the Lockmeadow leisure complex and elements of Maidstone House. The audit made recommendation relating to :

♦ Formalisation of existing arrangement

♦ Scoping facilities management services (at Maidstone House)

♦ Contract monitoring

♦ Market testing and procurement

� Contract management (partial weakness)

The audit identified that previously accepted management risks regarding the decision not to recruit a resource as part of the Partnership Agreement, combined with a lack of guidance and training, is affecting the councils� ability to have effective corporate oversight and governance of contract management.� Legislative requirements are only partially met. 12 findings and recommendations were raised identifying opportunities to strengthen and improve these processes and increase corporate knowledge of the requirement of effective contract management.

Particular areas of strength that were identified as part of internal audit work were in the Council�s Learning and Development service, Land Charges service and the work undertaken in Conservation and Heritage.

In addition to internal governance arrangements, external auditors, regulators and other bodies outside of the Council have an important role in the Council�s overall governance and control structure. The external auditor�s review of the 2022/23 accounts went to the Audit Governance and Standards Committee in March 2024.

Roles and Responsibilities

Structure	Roles and Responsibilities
Council	The Council has a Leader and Cabinet model of executive arrangements. Full Member engagement is encouraged through Policy Advisory Committees who review all reports to advise the Cabinet prior to decisions being taken. The Council agrees the budget and policy framework, such as the Business Plan, Medium Term Financial Strategy, including the General Fund Budget and Council Tax levels and the Commercial and Investment Strategy.
Cabinet	The Cabinet is the Council�s principal decision-making body, charged with implementing the budget and policy framework agreed by the Council.
Chief Executive Section 151 Officer Monitoring Officer Director of Strategy, Insight and Governance Head of Internal Audit Partnership	Alison Broom who is Head of Paid Service with overall corporate management and operational responsibility. Mark Green is the Council�s Chief Financial Officer/ s151 Officer is to ensure that all parts of the Council act in accordance with the budgetary and policy requirements in connection with the setting of the budget and financial administration standards within the Council. Robin Harris is the statutory officer responsible for the legal governance of the council, the custodian of the Council's Constitution and has a legal duty to ensure the Council fulfils its statutory obligations and applies its codes of conduct. Angela Woodhouse also has responsibility for corporate governance and is the Council�s Senior Information Risk Owner and Deputy Monitoring Officer Katherine Woodward is responsible for the delivery of internal audit and the audit plan.
Audit, Governance and Standards Committee	The Committee plays a vital role in overseeing and promoting good governance, ensuring accountability, and reviewing how things are done. It provides an assurance role to the council by examining areas such as audit, risk, internal control, anti-fraud, and financial accountability. The Committee works closely with Internal Audit and senior management to continually improve the governance, risk, and control environment.
Overview and Scrutiny Committee	Overview and Scrutiny undertake select committee style reviews and can call-in decisions for review as well as carry out pre-decision scrutiny. They hold the executive to account.

Head of Internal Audit Opinion

Following two years of reduced capacity of the internal audit team due to significant staff changes and shortages, a partially successful recruitment has led to a period of greater stability within the team. Overall progress on the planned programme of work delivered by internal audit has improved with a greater number of audits completed in 2023/24. In addition to the results of the internal audit work concluded during the year some additional sources of assurance have also been included to support the opinion. A summary of where it has been possible to place reliance on the work of other assurance providers is presented in the annual internal audit report. Utilising all these forms of assurance I can draw a positive conclusion as to the adequacy and effectiveness of Maidstone Borough Council�s risk management, control and governance processes. In my opinion, Maidstone Borough Council has adequate and effective risk management, control and governance processes in place to manage the achievement of their objectives.

Conclusion

Based on the evidence provided in this report and the appendices, the Council has appropriate and effective governance arrangements in place. In particular, there are clear processes in place to manage risk and respond to any governance concerns that are identified.

Signatures

Councillor Stuart Jeffrey

Leader

Date:

Alison Broom

Chief Executive

Date:

Appendix A - Annual Governance Review

Principle	Evidence	Action
A: Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law	The Council has comprehensive policies and codes of conduct that clearly outline our commitment to integrity, ethical behaviour, and compliance with the law. These documents are easily accessible to all employees and regularly reviewed and updated as needed. The Council�s Values developed with staff are used as part of the recruitment process to ensure everyone can show the standards of behaviour and a commitment to integrity. The staff survey conducted between 30 January and 3 March 2024 with a 60% response rate identified that 87.4% of respondents are committed to delivering the council�s values. Training on the Nolan principles and standards in public life was delivered to Councillors in February 2024 A new Local Code of Conduct for Councillors was developed in 2023/24 across Kent, the Audit, Governance and Standards Committee had an opportunity to review and amend the new code for Maidstone. Some discontent was expressed by Parish Colleagues who now have the opportunity to adapt and adopt the code as they deem appropriate. Annual renewal and inspection of certifications where appropriate for the role, such as legal, planning and property.	Annual Member training programme to include Nolan principles and standards in public life
B: Ensuring openness and comprehensive stakeholder engagement	Town Centre User Group meetings were held with members and stakeholders for both Environmental Services and Economic Development as well as regular cluster meetings on community safety issues with the Council and Kent Police. Member's briefings were held throughout the year on key topics as well as a Depot Open Day for Members. The Council continues to develop links to local groups and organisations, including: Kent Invicta Chamber of Commerce, Federation of Small Business, Kent universities, Locate In Kent, Kent and Medway Economic Partnership, One Maidstone, Mid Kent College, Parishes and Neighbourhood forums. It also holds two Anchor Institution Partnership meetings each year for the Borough. During 2023/24 the Policy, Communities & Engagement team carried out 37 consultations; 7 of these were internal, aimed at staff or members and 30 were public, resident or stakeholder consultations. Overall, over 9,500 responses were received to consultations run by the Policy, Communities & Engagement team in 2023/24 and over 25,000 people visited our consultation portal �Let�s Talk�.� Public consultations were undertaken on a variety of topics. Some focussed on specific geographical areas in the borough such as the Town Centre Public Spaces Protection Order and Marden & Staplehurst Conservation Area Management Plans and other consultations sought information about specific policies or how residents felt about particular issues. For example, the Climate Change Survey sought residents' views on the proposed action in the action plan as well seeking to understand residents� attitude to climate change. The Lockmeadow survey sought suggestions about how we could use Coronation Square and to understand what residents expect from the facility.� The information gathered through these surveys has been used to support decision making. Survey data has also been used to identify and prioritise ongoing improvements to service delivery. Communications continues to play a key role for Maidstone Borough Council, supporting and promoting the services and projects that it leads on.� The Communications, Marketing & Events Team works closely with partner organisations to deliver messaging which builds pride in place for Maidstone as the County Town of Kent.� In 2023/24 the team has supported front line services and projects including the Local Plan Review, Town Centre Strategy, #CleanUpMaidstone and the launch of the new waste and recycling contract.� Other MBC campaigns that it has helped promote include the Creative Community Grants, Community Resilience Fund, Rural England Prosperity Fund, Home Upgrade Grant and Summer Community Grant Funding. A number of events have been held including the opening of the Mote Park Caf�, the inaugural Maidstone Literary Festival, two visits from the Archbishop of Canterbury, the launch of the Magical Beast Trail and App, Medieval Fayre, a Community Variety Show in Whatman Park, plus a Coronation Celebration of King Charles and Queen Camilla where over 200 local school children were invited to a traditional street party. In addition, we introduced the Maidstone Christmas Donation Hub which was open for six weeks in November and December 2023. The project saw over 800 donations made to 11 local charities at the approximate value of �15k. The Council�s Borough Insight community magazine distributed to residential properties twice yearly across the borough. 165 press releases were issued as well as using our social media channels to broadcast daily messages to 70k users.
C: Defining outcomes in terms of sustainable economic, social, and environmental benefits	The Council has a team responsible for biodiversity and climate change. The team provided Carbon Literacy Training to employees and Councillors. A revised Biodiversity and Climate Change Action Plan was agreed in 2023/24. And a plan was agreed for investment in 2024/25 in the greening and lighting of our town centre following a feasibility study carried out in 2023/24. A new strategy for preventing financial exclusion was developed and out in place in 2023/24. A new welfare officer post has been created and approved as a growth item in our budget. Community Larders were added to in 2023/24 with trinity being added to the offer, plans have been made to make the service sustainable beyond the external project funding for 2024/25 The Council continued to implement flexible working arrangements with the support of technology to allow less travel into the workplace, improve employee well-being, and increase productivity. The Council has an awareness of green standard requirements when undertaking building project, lettings, and property management. When considering leases and license and disposal and contract management, the Council is compelled to seek open market best value and consider social benefits and value. In 2023/24 the Council was successful in its bid for government grant funding to decarbonise Maidstone House and the Link. The Council appointed a Carbon Projects Manager to assist with program of the SALIX grant for decarbonisation of Maidstone House. The Council continues to look at ways to cut printing, including encouraging the use of e-billing and Members receiving agendas via email rather than on paper. Work on the Town Centre Strategy in 2023/24 led to a series of actions agreed by Cabinet in December 2023 to complete work on the town centre economy, creating high quality town centre living, and workstreams on heritage, leisure and hospitality, infrastructure, creative and culture and transport as well as future engagement work planned. The Economic Development team have continued to progress the council�s Economic Development Strategy with particular projects on the Business Terrace and Maidstone Innovation Centre.	Carbon Literacy Training has been rolled out but only a small number of staff and councillors have been trained, work will continue on this in 2023/24 Triple Bottom Line remains a live topic and will be a new action aligned to the new administration�s priorities to ensure economic, social and environmental benefits are considered in decision making � Updates are needed to Modern.gov to enable better use of the application and reduce the need for paper agendas for Members and Officers
D: Determining the interventions necessary to optimise the achievement of the intended outcomes	The Council introduced a Local Insights Tool, data from this was used to inform policy and decision making for example the new Housing Strategy and Preventing Financial Exclusion Strategy. We have also continued the roll out of dashboards to ensure informed decision making. As well as ensuring our managers and directors are informed about workload. Data can be used to identify areas for a deep dive to assist with continuous improvement - as part of our philosophy of being evidence based, objectives led and outcome focussed. For example, the Leadership Team regularly receive data insight reports looking at homelessness and temporary accommodation. The use of data analytics to prevent homelessness is monitored quarterly to ensure it provides the intended outcomes. The Council developed posts to meet organisational needs; including the creation of a new Heads of Service to lead Spatial Planning and Economic Development, New Business (for housing and regeneration projects) and the Council�s Property and Leisure Portfolio.� The development of business case for expanding or developing services including the Bereavement Services cafe / florist and Partnership Board for Mid Kent Waste Partnership. Managers review employee workload to inform decisions about work allocation. Cross departmental training is provided between Customer Services, Business Rates, Licensing and Development Management. A new productivity plan was developed towards the end of the 2023/24 year with sign off in 2024/25. In 2023/24 we reviewed our transformation capability and in 2024/5 we will complete this and implement the outcomes as well as refreshing our transformation programme. The programme in 2023/4 focussed on supporting the new waste contract, the expansion of our 2-way revenues and benefits shared service to a 3-way service and support to other services including voice bot piloting in customer services.	Complete review of Transformation Capability and implement refreshed Transformation Programme
E: Developing the entity�s capacity, including the capability of its leadership and the individuals within it	A new workforce strategy for 2024-2029 was developed with the Wider Leadership Team and approved in 2023/24. Actions to support the delivery of the strategy will begin in 2024/25 across all four themes. Managers discuss workload in 1-2-1 meetings. Where possible, managers provided a flexible structure that enables teams to respond to a changing environment that meets the needs of our residents. Restructures were conducted where necessary based on the business need; including Parks and Open Spaces being combined with the Operational Grounds Maintenance Team and Communications being combined with events. Insight Discovery: Colour Works is used to help employees understand working relationships within teams and their own strengths and areas of development to improve self-awareness and team performance. Opportunities for development are encouraged and supported through the Council�s learning and development programme. This included management and leadership training aimed at current and future managers. Employees are asked to consider their training needs at one to ones. The staff survey identified that 78.9% of respondents believed their manager motivated them to be more effective in their job, 83.25% were positive about their line manager�s skills and 71.25% identified that they were able to access the right learning and development opportunities. Democracy and General Purposes Committee oversee a Member development programme ensuring training is delivered for Councillors on topics such as chairing skills, standards and planning and licensing. To plan for the reduction in Councillors the committee also considered the current governance arrangements and recommended a reduction to the Policy Advisory Committees from 4 to 3 in 2024/25. .	Wider Leadership Team to develop actions in response to the staff survey listening sessions with all colleagues Democracy and General purposes to consider the number of members on larger committees such as planning to identify if in light of the reduction in the number of members change is needed
F: Managing risks and performance through robust internal control and strong public financial management	Internal Audit undertake audits across the organisation. In addition, external auditors are used to review the Statement of Account and Payroll. Human Resources support the segregation of duties to prevent conflicts of interest and reduce the risk of fraud or error. There are processes in place to ensure that no single individual has control over key aspects of operations. The Council maintains a risk register which identifies high risk, high profile and high value matter so that managers have oversight. A quarterly finance, performance and risk monitoring report is considered by the Leadership Team, Policy Advisory Committees and Cabinet. Business continuity plans are reviewed regularly. A business impact analysis was undertaken in 2023/24 with priority services and actions identified as a result plans were reviewed and updated. The breadth and complexity of complaints is a challenge for service areas to respond to within the time frames. Complaints performance is reported Annually to the Audit, Governance and Standards Committee alongside the Local Government and Social Care Ombudsman�s annual letter. A new complaint handling code was consulted on in 2023/24 by the Local Government and Social Care Ombudsmen, the code will be implemented in 2026/27. An information governance group meets quarterly chaired by the Senior Information Risk Owner, issues considered this you include working abroad, data sharing and information management in relation to new projects and new working practices for example to use of artificial intelligence.	Ensure the medium term financial strategy, and capital programme are revised to align to the new strategic plan with robust financial analysis Prepare to implement new complaint handling code and update our policies to reflect this.
G: Implementing good practices in transparency, reporting, and audit to deliver effective accountability	Reports are reviewed through internal processes before publication with Section 151 officer sign off to ensure value for money is achieved and that wider impacts are considered. �Their assessment is included in Committee reports. Departments work closely with the Internal Audit to ensure that working practices align with the Council's Constitution. Departments are supportive of recommendations from audit reports and seek to implement these to improve service delivery and compliance.� In 2023/24 out of 66 decisions taken by the Cabinet, 6 had appendices with exempt information and 1 decision was wholly exempt. This is reported annually to the Democracy and General Purposes Committee. The ongoing programme of data dashboard development includes transparency as an aim to make data publicly available. There are 9 dashboards available on our website The Council considered the Freedom of Information Act and obligations under the Environmental Information Regulations 2004 when disclosing information. An annual report was presented on information governance to the Audit Governance and Standard�s Committee. The Council�s leadership team has considered the use of Artificial Intelligence, it is yet to introduce policies to govern the use of artificial intelligence. Some teams are piloting artificial intelligence tools. The Audit Team has conducted 19 reviews in 2023/24. As well as providing assurance across a number of areas 3 areas were identified as needing improvement and given a weak rating and another with a partial weak rating.	New internal audit standards are due to implemented in 2024-2025 and provisions are in place to support this. Updated to Audit Charter and Audit Strategy will be required. Framework/policy for the use of artificial intelligence Monitor recommendation implementation of Audit�s with weak ratings

Principle

Evidence

Action

A: Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law

The Council has comprehensive policies and codes of conduct that clearly outline our commitment to integrity, ethical behaviour, and compliance with the law. These documents are easily accessible to all employees and regularly reviewed and updated as needed.

The Council�s Values developed with staff are used as part of the recruitment process to ensure everyone can show the standards of behaviour and a commitment to integrity. The staff survey conducted between 30 January and 3 March 2024 with a 60% response rate identified that 87.4% of respondents are committed to delivering the council�s values.

Training on the Nolan principles and standards in public life was delivered to Councillors in February 2024

A new Local Code of Conduct for Councillors was developed in 2023/24 across Kent, the Audit, Governance and Standards Committee had an opportunity to review and amend the new code for Maidstone. Some discontent was expressed by Parish Colleagues who now have the opportunity to adapt and adopt the code as they deem appropriate.

Annual renewal and inspection of certifications where appropriate for the role, such as legal, planning and property.

Annual Member training programme to include Nolan principles and standards in public life

B: Ensuring openness and comprehensive stakeholder engagement

Town Centre User Group meetings were held with members and stakeholders for both Environmental Services and Economic Development as well as regular cluster meetings on community safety issues with the Council and Kent Police.

Member's briefings were held throughout the year on key topics as well as a Depot Open Day for Members.

The Council continues to develop links to local groups and organisations, including: Kent Invicta Chamber of Commerce, Federation of Small Business, Kent universities, Locate In Kent, Kent and Medway Economic Partnership, One Maidstone, Mid Kent College, Parishes and Neighbourhood forums. It also holds two Anchor Institution Partnership meetings each year for the Borough.

During 2023/24 the Policy, Communities & Engagement team carried out 37 consultations; 7 of these were internal, aimed at staff or members and 30 were public, resident or stakeholder consultations. Overall, over 9,500 responses were received to consultations run by the Policy, Communities & Engagement team in 2023/24 and over 25,000 people visited our consultation portal �Let�s Talk�.�

Public consultations were undertaken on a variety of topics. Some focussed on specific geographical areas in the borough such as the Town Centre Public Spaces Protection Order and Marden & Staplehurst Conservation Area Management Plans and other consultations sought information about specific policies or how residents felt about particular issues. For example, the Climate Change Survey sought residents' views on the proposed action in the action plan as well seeking to understand residents� attitude to climate change. The Lockmeadow survey sought suggestions about how we could use Coronation Square and to understand what residents expect from the facility.�

The information gathered through these surveys has been used to support decision making. Survey data has also been used to identify and prioritise ongoing improvements to service delivery.

Communications continues to play a key role for Maidstone Borough Council, supporting and promoting the services and projects that it leads on.� The Communications, Marketing & Events Team works closely with partner organisations to deliver messaging which builds pride in place for Maidstone as the County Town of Kent.�

In 2023/24 the team has supported front line services and projects including the Local Plan Review, Town Centre Strategy, #CleanUpMaidstone and the launch of the new waste and recycling contract.� Other MBC campaigns that it has helped promote include the Creative Community Grants, Community Resilience Fund, Rural England Prosperity Fund, Home Upgrade Grant and Summer Community Grant Funding.

A number of events have been held including the opening of the Mote Park Caf�, the inaugural Maidstone Literary Festival, two visits from the Archbishop of Canterbury, the launch of the Magical Beast Trail and App, Medieval Fayre, a Community Variety Show in Whatman Park, plus a Coronation Celebration of King Charles and Queen Camilla where over 200 local school children were invited to a traditional street party. In addition, we introduced the Maidstone Christmas Donation Hub which was open for six weeks in November and December 2023. The project saw over 800 donations made to 11 local charities at the approximate value of �15k.

The Council�s Borough Insight community magazine distributed to residential properties twice yearly across the borough. 165 press releases were issued as well as using our social media channels to broadcast daily messages to 70k users.

C: Defining outcomes in terms of sustainable economic, social, and environmental benefits

The Council has a team responsible for biodiversity and climate change. The team provided Carbon Literacy Training to employees and Councillors. A revised Biodiversity and Climate Change Action Plan was agreed in 2023/24. And a plan was agreed for investment in 2024/25 in the greening and lighting of our town centre following a feasibility study carried out in 2023/24.

A new strategy for preventing financial exclusion was developed and out in place in 2023/24. A new welfare officer post has been created and approved as a growth item in our budget. Community Larders were added to in 2023/24 with trinity being added to the offer, plans have been made to make the service sustainable beyond the external project funding for 2024/25

The Council continued to implement flexible working arrangements with the support of technology to allow less travel into the workplace, improve employee well-being, and increase productivity.

The Council has an awareness of green standard requirements when undertaking building project, lettings, and property management. When considering leases and license and disposal and contract management, the Council is compelled to seek open market best value and consider social benefits and value.

In 2023/24 the Council was successful in its bid for government grant funding to decarbonise Maidstone House and the Link. The Council appointed a Carbon Projects Manager to assist with program of the SALIX grant for decarbonisation of Maidstone House.

The Council continues to look at ways to cut printing, including encouraging the use of e-billing and Members receiving agendas via email rather than on paper.

Work on the Town Centre Strategy in 2023/24 led to a series of actions agreed by Cabinet in December 2023 to complete work on the town centre economy, creating high quality town centre living, and workstreams on heritage, leisure and hospitality, infrastructure, creative and culture and transport as well as future engagement work planned.

The Economic Development team have continued to progress the council�s Economic Development Strategy with particular projects on the Business Terrace and Maidstone Innovation Centre.

Carbon Literacy Training has been rolled out but only a small number of staff and councillors have been trained, work will continue on this in 2023/24

Triple Bottom Line remains a live topic and will be a new action aligned to the new administration�s priorities to ensure economic, social and environmental benefits are considered in decision making

�

Updates are needed to Modern.gov to enable better use of the application and reduce the need for paper agendas for Members and Officers

D: Determining the interventions necessary to optimise the achievement of the intended outcomes

The Council introduced a Local Insights Tool, data from this was used to inform policy and decision making for example the new Housing Strategy and Preventing Financial Exclusion Strategy.

We have also continued the roll out of dashboards to ensure informed decision making. As well as ensuring our managers and directors are informed about workload. Data can be used to identify areas for a deep dive to assist with continuous improvement - as part of our philosophy of being evidence based, objectives led and outcome focussed. For example, the Leadership Team regularly receive data insight reports looking at homelessness and temporary accommodation.

The use of data analytics to prevent homelessness is monitored quarterly to ensure it provides the intended outcomes.

The Council developed posts to meet organisational needs; including the creation of a new Heads of Service to lead Spatial Planning and Economic Development, New Business (for housing and regeneration projects) and the Council�s Property and Leisure Portfolio.�

The development of business case for expanding or developing services including the Bereavement Services cafe / florist and Partnership Board for Mid Kent Waste Partnership.

Managers review employee workload to inform decisions about work allocation.

Cross departmental training is provided between Customer Services, Business Rates, Licensing and Development Management.

A new productivity plan was developed towards the end of the 2023/24 year with sign off in 2024/25.

In 2023/24 we reviewed our transformation capability and in 2024/5 we will complete this and implement the outcomes as well as refreshing our transformation programme. The programme in 2023/4 focussed on supporting the new waste contract, the expansion of our 2-way revenues and benefits shared service to a 3-way service and support to other services including voice bot piloting in customer services.

Complete review of Transformation Capability and implement refreshed Transformation Programme

E: Developing the entity�s capacity, including the capability of its leadership and the individuals within it

A new workforce strategy for 2024-2029 was developed with the Wider Leadership Team and approved in 2023/24. Actions to support the delivery of the strategy will begin in 2024/25 across all four themes.

Managers discuss workload in 1-2-1 meetings. Where possible, managers provided a flexible structure that enables teams to respond to a changing environment that meets the needs of our residents.

Restructures were conducted where necessary based on the business need; including Parks and Open Spaces being combined with the Operational Grounds Maintenance Team and Communications being combined with events.

Insight Discovery: Colour Works is used to help employees understand working relationships within teams and their own strengths and areas of development to improve self-awareness and team performance.

Opportunities for development are encouraged and supported through the Council�s learning and development programme. This included management and leadership training aimed at current and future managers. Employees are asked to consider their training needs at one to ones.

The staff survey identified that 78.9% of respondents believed their manager motivated them to be more effective in their job, 83.25% were positive about their line manager�s skills and 71.25% identified that they were able to access the right learning and development opportunities.

Democracy and General Purposes Committee oversee a Member development programme ensuring training is delivered for Councillors on topics such as chairing skills, standards and planning and licensing. To plan for the reduction in Councillors the committee also considered the current governance arrangements and recommended a reduction to the Policy Advisory Committees from 4 to 3 in 2024/25.

Wider Leadership Team to develop actions in response to the staff survey listening sessions with all colleagues

Democracy and General purposes to consider the number of members on larger committees such as planning to identify if in light of the reduction in the number of members change is needed

F: Managing risks and performance through robust internal control and strong public financial management

Internal Audit undertake audits across the organisation. In addition, external auditors are used to review the Statement of Account and Payroll.

Human Resources support the segregation of duties to prevent conflicts of interest and reduce the risk of fraud or error. There are processes in place to ensure that no single individual has control over key aspects of operations.

The Council maintains a risk register which identifies high risk, high profile and high value matter so that managers have oversight. A quarterly finance, performance and risk monitoring report is considered by the Leadership Team, Policy Advisory Committees and Cabinet.

Business continuity plans are reviewed regularly. A business impact analysis was undertaken in 2023/24 with priority services and actions identified as a result plans were reviewed and updated.

The breadth and complexity of complaints is a challenge for service areas to respond to within the time frames. Complaints performance is reported Annually to the Audit, Governance and Standards Committee alongside the Local Government and Social Care Ombudsman�s annual letter. A new complaint handling code was consulted on in 2023/24 by the Local Government and Social Care Ombudsmen, the code will be implemented in 2026/27.

An information governance group meets quarterly chaired by the Senior Information Risk Owner, issues considered this you include working abroad, data sharing and information management in relation to new projects and new working practices for example to use of artificial intelligence.

Ensure the medium term financial strategy, and capital programme are revised to align to the new strategic plan with robust financial analysis

Prepare to implement new complaint handling code and update our policies to reflect this.

G: Implementing good practices in transparency, reporting, and audit to deliver effective accountability

Reports are reviewed through internal processes before publication with Section 151 officer sign off to ensure value for money is achieved and that wider impacts are considered. �Their assessment is included in Committee reports.

Departments work closely with the Internal Audit to ensure that working practices align with the Council's Constitution. Departments are supportive of recommendations from audit reports and seek to implement these to improve service delivery and compliance.�

In 2023/24 out of 66 decisions taken by the Cabinet, 6 had appendices with exempt information and 1 decision was wholly exempt. This is reported annually to the Democracy and General Purposes Committee.

The ongoing programme of data dashboard development includes transparency as an aim to make data publicly available. There are 9 dashboards available on our website

The Council considered the Freedom of Information Act and obligations under the Environmental Information Regulations 2004 when disclosing information. An annual report was presented on information governance to the Audit Governance and Standard�s Committee.

The Council�s leadership team has considered the use of Artificial Intelligence, it is yet to introduce policies to govern the use of artificial intelligence. Some teams are piloting artificial intelligence tools.

The Audit Team has conducted 19 reviews in 2023/24. As well as providing assurance across a number of areas 3 areas were identified as needing improvement and given a weak rating and another with a partial weak rating.

New internal audit standards are due to implemented in 2024-2025 and provisions are in place to support this. Updated to Audit Charter and Audit Strategy will be required.

Framework/policy for the use of artificial intelligence

Monitor recommendation implementation of Audit�s with weak ratings

Appendix B - Update on previous action plan 2023-2024

Corporate Governance Area	Update
Introduce Triple Bottom Line accounting for decision making	This project was not completed in 2023/24. Research was undertaken and a report was prepared, work was delayed awaiting the election. This is a priority for our new administration as part of their proposal to use Doughnut Economic Model to inform decision making.
Implement the Local Insight system which provides access to a wide range of data sets borough wide to neighbourhood level. This system will enable swift access to information, trends and benchmarking to help inform service and policy development and reduce the need for extensive data research either internally or externally at a cost	System has been implemented and rolled out to users across the council and external partners. Data from the tool has been used to inform strategies in 2023/24 including the Housing Strategy and Financial Exclusion Strategy and Action Plan.
Ensure public and stakeholder engagement on the Town Centre Strategy.	Stakeholders were involved in the development of ideas and options for the town centre. The Town Centre Strategy did not progress to public consultation
Review and update the Workforce Strategy	A new workforce strategy was developed and introduced in 2024.
Review of the constitution	The Constitution is subject to review every year.�
Training for Councillors and Officers to prepare for all out elections and a four yearly term of office in 2024.	A programme of sessions was organised with the Local Government Association to brief and engage Councillors and Officers on the change in terms of decision making over a four-year cycle and preparing for change post-election.�
Training for Councillors on the Nolan Principles and Carbon Literacy Training	A training session was held on the Nolan Principles in March 2024 and two carbon literacy training sessions were held for Councillors.
Corporate risk - General Financial Uncertainty Unexpected changes to government funding, failure to achieve income or savings targets, and increases in inflation and contractor costs and deteriorating economic environment	The Council has a strong budget and policy framework which helps to mitigate this risk. Specific measures that are in place include: - regular budget monitoring - an up-to-date medium term financial strategy - use of scenario planning to identify future risks and to inform budget setting - planned and deliverable savings to address known short-term budget gaps. The Council has uncommitted revenue reserves amounting to around four months of gross revenue, which is considered to be adequate to address known risks whilst not being excessive.
Corporate risk - Greater challenge or failure for a general election in the next three years Elections Act 2022 implications in terms of Voter ID, Postal Votes and Overseas Voters	Risk registers and project plans are in place for a General Election. Staff have been trained on the changes through in person training and further supported by polling station inspectors and the electoral services team. The changes were also covered in guidance given to candidates and agents and new processes and forms have been introduced to manage the changes required to postal votes. A new burdens grant was allocated and this has been used to increase staff in registration.
Corporate risk - Significant changes in construction costs which may also result in a contractor insolvency. As they are generally locked into delivering schemes at a fixed price, and so need to manage their exposure to rising costs in their supply chain. Inflation continues to rise and a significant economic event (e.g. further pandemic impacts, BREXIT, supply chain issues)	This risk remains on the corporate risk register. There are nine controls that have already been put in place, all of which are listed on the JCAD risk monitoring system. The control that is ongoing is to work closely with our retained architect and employer�s agent to ensure that our new schemes are well designed, so as to be efficient and cost effective to build, and well as fully meeting our required design quality standards. In the main though, this risk is managed through monitoring the contractors financial standing, pre and post contract, and monitoring the quality and progress of their work on site, ensuring that their monthly payment requests for WiP are supported by our Employer�s Agent to ensure that the Council is only advancing monies for completed works.
Corporate risk - Housing pressures increasing on the Council. The broader housing and cost of living crisis	This risk remans on the corporate risk register. The risk has been retitled to �Rising Temporary Accommodation (TA) Costs�. The Council is assembling its own TA portfolio, owned, and leased, to rise to 215 units (currently 125). This will then mean that the Council�s reliance on expensive nightly paid private sector temporary accommodation should be largely eradicated, on the basis that numbers of households in TA remain steady at circa 200-250. More broadly the Council has an ambition to build 1,000 affordable homes over the medium to longer term, which will alleviate housing need in due course. Finally, the Council continues to invest considerably in its homelessness advice team, that aims to work with clients to avoid them ultimately becoming homeless and becoming in need of TA. The Council has fourteen controls already in place, and a further six in progress.

Appendix C: Corporate Governance Action Areas 2024-25

Corporate Governance Area	Lead Officer	By When�
Annual Member training programme to include Nolan principles and standards in public life	Director of Strategy, Insight and Governance	June 2024
Democracy and General purposes to consider the number of members on larger committees such as planning to identify if in light of the reduction in the number of members change is needed.	Director of Strategy, Insight and Governance	September 2024
Carbon Literacy Training to continue for employees and Members in 2024/25	Head of Insight, Communities and Governance	March 2025
Ensure economic, social and environmental benefits are considered in decision making	Director of Strategy, Insight and Governance	March 2025
Update Modern.gov to enable better use of the application and reduce the need for paper agendas for Members and Officers	Director of Strategy, Insight and Governance	March 2025
Introduction of a transformation programme in 2024/25	Director of Finance, Resources and Business Improvement	October 2025
Wider Leadership Team to develop actions in response to the staff survey listening sessions with all colleagues	Chief Executive	October 2024 and March 2025
Ensure the medium term financial strategy, and capital programme are revised to align to the new strategic plan with robust financial analysis	Director of Finance, Resources and Business Improvement	February 2025
Prepare to implement new complaint handling code and update our policies to reflect this	Head of Insight, Communities and Governance	March 2025
New internal audit standards implemented in 2024-2025 with appropriate changes made to the Audit Charter and Audit Standards	Head of Internal Audit Partnership	March 2025
Introduce a framework/policy for the use of artificial intelligence	Head of Insight, Communities and Governance	October 2024
Monitor recommendation implementation of Audit�s with weak ratings	As per review	As identified in the reviews