Contents

Annual Governance Statement 2020 to 2021

  1. Scope
    1. The London Borough of Bexley is responsible for ensuring that it serves its communities, residents and businesses in accordance with the law and proper standards and that it safeguards and accounts for the public money, assets and resources that it holds on their behalf.
    2. The Council 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.
    3. The Council has approved and adopted a Constitution and Code of corporate governance, which is consistent with the principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government.
    4. This Annual Governance Statement explains how the Council has implemented the Code and how the Council meets the requirements of the Accounts and Audit (England) Regulations 2015. The Council maintains a separate Governance Compliance Statement on pension fund matters to comply with the Local Government Pension Scheme Regulations 2013 and this forms part of the Pension Fund’s annual report (available at Local Pensions Partnership).
  2. Purpose
    1. The Council’s governance framework includes the following elements:
      • The Council’s Corporate Plan #Brilliant Bexley Shaping Our Future Together
      • The Values adopted by the Council
      • The Constitution and Code of Governance including Procedure Rules, Code of Conduct for Members and protocols
      • The Officer arrangements for governance through the Corporate Leadership Team, Directorate Leadership Teams and Governance Boards and
      • The systems and processes adopted by the Council
    2. These elements enable the Council to identify progress and monitor the achievement of its strategic priorities and outcomes. Together, they create a framework for the Council’s decision-making and management of performance, resources and risk.
    3. The governance framework described has been in place at the London Borough of Bexley for the year ended 31 March 2021 and up to the date of approval of the Statement of Accounts.
  3. Governance Arrangements
    1. The following paragraphs explain the role and purpose of each group or individual within the Council's internal governance arrangements.
    2. The Council - The Council consists of all elected Councillors. Members are responsible for agreeing the overarching policy framework for the Council, for agreeing the budget and assessing, critiquing and approving the policy framework and strategies put forward to them by the Executive. The Council acts in accordance with the provisions contained in legislation and the provisions within the Council’s Constitution and Code of Corporate Governance, including those stipulated in Article 4 of Part 2.
    3. The Council held a by-election on 6 May 2021 resulting in one change in the membership of the Council from this date.
    4. The Council have full access to the three statutory Officers responsible for governance, namely: Head of Paid Service, Section 151 Officer and the Monitoring Officer.
    5. The Council are supported by the Overview and Scrutiny Committees and General Purposes & Audit Committee who have responsibility for governance.
    6. The Leader and Cabinet - The Leader and Cabinet exercise the executive functions of the Council, in accordance with the provisions of Part 1A of the Local Government Act 2000, The Local Authorities (Functions and Responsibilities) (England) Regulations 2000 and the Council’s Constitution and Code of Corporate Governance. The Cabinet is at the heart of the day-to-day decision-making process and is responsible for proposing the policy framework and strategic direction of the Council. It also has a key role in proposing the budget and policy framework to the Council. It introduces both the traditional collective decision-taking and the possibilities for decision-making by individual Cabinet Members in respect of executive functions.
    7. The responsibilities within each Cabinet Portfolio and the Executive Arrangements are reported at the Annual Council meeting. The Cabinet will carry out all the local authority’s functions, which are not the responsibility of any other part of the Council, whether by law or under the constitution.
    8. Following the Annual Council meeting on 26 May 2021, there was a change in two Members of the Cabinet.
    9. The Cabinet is supported by the three statutory Officers and the wider Corporate Leadership Team.
    10. Overview and Scrutiny Committees - The role, functions and terms of references of the Council’s Overview and Scrutiny Committees are stipulated in the provisions of legislation and in Article 7 of Part 2 of the Council’s Constitution and Code of Corporate Governance. These include reviewing and scrutinising decisions made or actions taken in connection with the discharge of any of the Council’s functions; making reports and/or recommendations to the Cabinet and/or Council in connection with the discharge of any functions; and consider any matter affecting the economic, environmental or social wellbeing of the area or its residents.
    11. The Overview and Scrutiny Committees can also exercise the right to call-in, for reconsideration, decisions made but not yet implemented by the Cabinet, Cabinet Members or key decisions if made by Officers, and consider matters referred to as a Councillor Call for Action. Overview and Scrutiny Committees may assist the Council and the Cabinet in the development of the budget and policy framework by in-depth analysis of policy issues; review performance, and question and challenge Members of the Cabinet and appropriate officers/partner agencies about proposals affecting the area. They may also review policy and challenge whether the Cabinet has made the right decisions about these policies and their implementation, and may take a long-term view of strategic issues and look in detail at key aspects of the Council’s operations.
    12. A number of the Overview and Scrutiny Committee Members form the Joint Budget Overview and Scrutiny Committee, specifically to consider the budget proposals and the Medium Term Financial Strategy.
    13. The Overview and Scrutiny Committees are composed of non-Executive Members of the Council and the Members of each Overview and Scrutiny Committee are allocated proportionately to reflect the balance between the respective Political Groups represented on the Council, in accordance with the provisions of the Local Government and Housing Act 1989. The Overview and Scrutiny Committees also operate under the relevant statutory guidance issued by the Government.
    14. Every year at the Annual Council meeting a Review of the Committee structure, size and membership take place with the appointments made accordingly. Orders of reference for the Overview and Scrutiny Committees and policy areas within the remit and focus of each Overview and Scrutiny Committee can be revised. The latest version was agreed at the May 2018 Annual Council meeting where the current configuration of four standing Overview and Scrutiny Committees was introduced.
    15. General Purposes & Audit Committee - The role of the General Purposes and Audit Committee is to provide a source of effective assurance on the adequacy of the risk management framework and the internal control environment.
    16. The Council’s Chief Internal Auditor, External Auditors and Section 151 Officer have direct access, if necessary, to the Chairman of the General Purposes & Audit Committee.
    17. External Audit - The Council is subject to review and appraisal from its external auditors, currently Ernst and Young Global LLP (EY). This organisation sends a report to the General Purposes & Audit Committee providing their opinion on whether the Council’s and the Pension Fund’s financial statements give a true and fair view of the financial position and the Council’s value for money.
    18. Ernst and Young Global LLP have been the Council’s external auditors since 2018/19 and their contract runs until 2024. This arrangement is through the Public Sector Audit Appointments (PSAA) process.
    19. Ernst and Young Global LLP have direct access to the Section 151 Officer and the Chairman of the General Purposes & Audit Committee.
    20. Internal Audit - Internal Audit is an independent assurance function that measures, evaluates and reports on the effectiveness of the controls in place to manage risk and governance processes. Their annual report states whether the systems of control are consistent and of adequate strength to allow the organisation to meet its objectives.
    21. Details of the annual internal audit plan and works undertaken are reported to General Purposes & Audit Committee and the work undertaken by the internal audit and assurance function supports the Council’s objectives, informs decision-making and assists the Cabinet and Corporate Leadership Team in making informed and effective decisions.
    22. The Corporate Leadership Team is the employed senior managerial function of the Council, headed by the Chief Executive as the Head of Paid Service. The Corporate Leadership Team is supported by the statutory Monitoring Officer (Deputy Director for Corporate Services and subsequently, (since September 2020), Deputy Director of Legal and Democratic Services), the Section 151 Officer (Director of Finance and Corporate Services) and the Directors of Adults Social Care, Children’s Services and Place and senior Council Officers.
  4. Compliance with and understanding of the CIPFA Solace Framework
    1. The Council has approved and adopted a Constitution and Code of Corporate Governance which is consistent with the principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government. The overall aim of the CIPFA/SOLACE Framework is to ensure that:
      • resources are directed in accordance with agreed policy and according to priorities
      • there is sound and inclusive decision making and
      • there is clear accountability for the use of resources to achieve desired outcomes for service users and communities
    2. The principles that underpin these aims are laid out below:

      Behaving with Integrity, Commitment to Ethical Values and Respect for the Rule of The Law
    3. At Bexley, Codes of Conduct embed a strong public service ethos and high standards of behaviour for Members and Officers. This is stewarded by the organisation’s Chief Officers, Directors and Deputy Directors who are supported by Legal Services in their overarching responsibility to ensure legal/regulatory compliance and maintain sound, effective internal procedures/policies. These high standards of openness, transparency and accountability are upheld and fostered by the Council’s commitment to its Whistleblowing Policy and Anti-fraud and Corruption Strategy.
    4. Council Officers have their own Codes of Conduct, contractual obligations and respective professional standards to uphold.
    5. Elected Members are bound by the Members’ Code of Conduct, which is enshrined into Part 5 of the Council’s Constitution and Code of Corporate Governance. The Members’ Code of Conduct Committee is well established and its functions, terms of reference and delegated powers are listed in Part 3 of the Council’s Constitution and Code of Corporate Governance. These include advising on appropriate strategies and actions to maintain and promote high standards of conduct; monitor and review the Code of Conduct and the effectiveness of standards procedures and policies; to advise on or arrange training; and to receive reports, conduct hearings and determine action in respect of allegations and complaints of Members breaching the Code of Conduct.

      Ensuring Openness and Comprehensive Stakeholder Engagement
    6. Bexley communicates with its Stakeholders through various platforms including:
      • partnership forums and groups, and service user forums
      • information and press releases on the Councils website and Social Media channels
      • poster campaigns across the Borough run by partners JC Decaux and
      • Community Champions
      • quarterly Bexley Magazine distributed to residents
    7. The network of Community Champions was established in 2020/21 to help us ensure that our residents have the information they need to help prevent a local outbreak of COVID-19 and to support residents.
    8. The Council engages its residents through partnerships with key stakeholder groups ranging from large public organisations (e.g. the Metropolitan Police), through third sector and voluntary sector organisations (e.g. Bexley Voluntary Service Council), to citizen-run networks such as the Neighbourhood Watch. Its residents also directly contribute to determining and realising Bexley’s vision, through public consultations, formal forums, and informal meetings.
    9. Individual elected Members engage with residents, businesses, and organisations in their Wards and across the Borough in a variety of ways and bring the knowledge, information and experiences to inform decision-making and overview and scrutiny processes within the Council.

      Defining Outcomes in Terms of Sustainable Economic, Social and Environmental Benefits
    10. The strategic vision for Bexley is set out in #Brilliant Bexley. To deliver this vision the Council defines specific outcomes and performance indicators and relates these to specific services. Operational and financial performance is reviewed by senior leaders at Directorate Leadership Teams and by Corporate Leadership Team.
    11. A number of cross-cutting Boards were incorporated into the terms of reference of either the Corporate or Directorate Leadership Teams during 2019/20. The Boards previously established and now amalgamated with the Leadership Teams are:
      • Transformation Board
      • Commissioning Strategy Board
      • Design and Innovation Board
      • Corporate Governance Improvement Board

      Determining the Intervention Necessary to Achieve Intended Outcomes
    12. The Council continues to prioritise and monitor its resources against agreed plans and outcomes, continually assessing value for money on behalf of its residents. Directorate Leadership Teams review regular management performance information provided by their services assessing and adjusting for any variances from the Corporate Plan or Medium Term Financial Strategy. This process is scrutinised by the Corporate Leadership Team, Cabinet and Scrutiny Committees. Key Performance Indicators (KPIs) are regularly published to support the monitoring of performance.

      Developing the Entity’s Capacity, including the Capability of its Leadership and the Individuals within it
    13. The role of Officers, the Cabinet, Overview and Scrutiny Committees and regulatory committees are set out in the Constitution and Code of Corporate Governance. Both Officers and Members are regularly offered and provided with training and guidance in relation to the London Borough of Bexley’s Code of Conduct, principles of good decision-making, ICT facilities, information governance and any mandatory elements important to their role.
    14. Senior Officers are provided with a number of opportunities to enhance their skills, including coaching/mentoring, attending seminars and membership of professional networks.
    15. All Members attend an induction programme and receive additional training relevant to specific roles, including dedicated training for Members of the Planning Committee, Licensing Committee and Pensions Committee. Members of Overview and Scrutiny Committees have attended workshops to share examples of good practice. Overview and Scrutiny Committee Chairmen meet regularly to review new guidance and review the success of their approach, coordinate work between Overview and Scrutiny Committees and instil a deep understanding of their role and responsibilities.
    16. The Monitoring Officer provides ongoing advice in connection with the legal standing of Council business and advice to Councillors on their responsibilities, alongside the maintenance/monitoring of the Constitution. To enable the Monitoring Officer to conduct their statutory role, in accordance with Section 5 Local Government and Housing Act 1989, the Monitoring Officer has access to all reports, attends key officer and committee meetings and is able to launch investigations in the eventuality of a breach of conduct.
    17. The Council has in place a Top Management Review Panel. This Panel is a Committee that carries out the annual performance appraisals in respect of the Chief Executive and Directors.

      Managing Risks and Performance Through Robust Internal Control and Strong Public Financial Management
    18. The revised Risk Management Strategy was adopted by the General Purposes & Audit Committee in March 2019. This is reviewed annually, and a revised version was presented to the General Purposes & Audit Committee in October 2020.
    19. The Strategic Risk Register has incorporated COVID 19 risks since March 2020, as have the Directorate risk registers. All risk registers have been reviewed weekly during the COVID 19 emergency response. The strategic risk register has been presented to the General Purposes & Audit Committee in October 2020 and January 2021.
    20. It is important that risks are triangulated effectively with other Corporate performance monitoring as well as the budget management and reporting process. A greater focus on highlighting risks will also be prominent in corporate decision-making, including in published decisions.
    21. The Council’s Anti-Fraud and Corruption Strategy lays out measures, processes and responsibilities for the prevention, deterrence and detection of fraud and corruption. Financial Regulations, Contract Procedure Rules, and Codes of Conduct for Members and employees add to this framework. A close working relationship between the Counter Fraud and Internal Audit teams allows for the identification of control weaknesses. Detection is enhanced through participation in data-matching exercises with the National Fraud Initiative and best practice is kept current through Membership to the National Anti-Fraud Network.
    22. Regular updates of anti-fraud activities which take place are provided to the General Purposes & Audit Committee.

      Implementing Good Practices in Transparency, Reporting and Audit to Deliver Effective Accountability
    23. The London Borough of Bexley has processes in place to ensure the Council provides clear, accurate and impartial information. The information supports the regular review of the Council’s finances, ensuring medium-term business/financial plans are aligned with strategic objectives and that public money is safeguarded. Work is underway to improve and strengthen those processes, including the analysis of budgets and monitoring of income and expenditure.
    24. These processes were supported, until 31 July 2020, by the Shared Service ‘oneSource’ (a partnership between the London Borough of Bexley, the London Borough of Havering and the London Borough of Newham) and the Director of Finance and Corporate Services whom, in line with CIPFA’s guidance, ensure that the budget is robust, and reserves are adequate. From 1 August 2020 onwards, the Council has brought the shared services in-house and has used this as an opportunity to review and improve its financial processes. A Finance Improvement Plan is in place and has been presented to the General Purposes & Audit Committee and Resources & Growth Overview and  Scrutiny.
    25. The Council has a clear performance framework in place, agreed by the Corporate Leadership Team and Members. It updates its corporate performance indicators each year to reflect corporate policies and these are reported regularly to Members. In 2020/21 it was ensured that key performance indicators were re-established in all Directorates and a number of Corporate Performance Indicators are reported consistently to Members. This allows Members to scrutinise policies and decisions, consider interventions to support outcomes and monitor key financial and service area risks.
    26. To aid with transparency and accountability to residents, businesses and interested parties, minutes of key meetings, decisions, all items of expenditure exceeding £500 and registers of interest are all published on the Council’s website. Also detailed will be any approvals pertaining to BexleyCo Limited’s (the Council’s wholly-owned subsidiary) annual business plan and the sanctioning of restricted financial matters relating to the company e.g. business loans and property and land purchases.
    27. The system of internal control has been designed to manage the risks of Bexley not achieving its objectives to a reasonable level. It is a continuous process with significant risks being identified and brought to the attention of senior management and Members. The internal audit assesses the overall quality of these controls and makes, where necessary, recommendations for improvements.

      BexleyCo Homes Ltd
    28. Bexley Council wholly owns BexleyCo Homes Ltd, which was established to deliver private and affordable homes within the Borough, with its first development of 58 new homes and apartments initiated in December 2019. The activities of BexleyCo are overseen by a Board, consisting of an independent Chair and two Non-Executive Directors, which reports regularly to the Council. As the company is now actively engaged in developing residential sites, further assurance on the internal control environment will be provided through the Internal Audit plan for 2021/22.
  5. Review of Effectiveness
    1. The London Borough of Bexley has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review is informed by:
      • work undertaken by the Chief Executive and the Corporate Leadership Team
      • Head of Assurance’s Annual Report and
      • External Auditors comments
      Effectiveness is assessed on the criteria:
      • extent to which the Authority complies with the principles and elements of good governance set out in the Framework
      • identifies systems, processes and documentation that provide evidence of compliance
      • identifies the individuals and committees responsible for monitoring and reviewing the systems, processes and documentation identified
      • identifies issues that have not been addressed in the Authority and consider how they should be addressed and
      • identifies the individuals who would be responsible for undertaking the actions required
    2. The review is led by the Head of Assurance and includes input from the Monitoring Officer, Directors and other Senior Managers. The results of the review are then considered by the Finance and Corporate Services Directorate Leadership Team before being presented to the Chief Executive and Leader of the Council.
  6. Impact of COVID-19
    1. The pandemic impacted on governance across the Council from March 2020 and throughout 2020/21. Effects included:
      • impact on business as usual delivery of services.
      • opportunities from new ways of working especially remote working.
      • new areas of activity implemented as part of the national response (including the implementation of new policy/procedure)
      • provision of emergency assistance
      • funding and logistical consequences of delivering the local government response
      • changes to Council meetings and decision making arrangements
      • new collaborative arrangements
      • funding and cash flow challenges
      • payment of business grants to local businesses on behalf of the government
      • assessment of the longer-term disruption and consequences arising from the pandemic e.g., existing projects and programmes put on hold
      • new priorities and objectives introduced and
      • new risks identified/existing risks escalated
    2. The Council instigated its COVID-19 emergency arrangements in March 2020 and has continued to operate and review them throughout 2020/21. A number have continued in 2021/22 to date. The emergency arrangements included a series of Gold groups that took responsibility for key aspects of the emergency response, e.g., support to residents who were deemed Clinically Extremely Vulnerable (CEV), excess deaths management, schools management, communications and deployment of resources. A detailed risk management mechanism was built into the Gold group reporting and Internal Audit assisted with the development that risk registers fed into a corporate COVID-19 risk register and the Corporate Risk Register. The COVID-19 risks and the Corporate Risk Register were reported through to the General Purposes & Audit Committee.
    3. A range of different grant streams have emerged and have need to be managed, e.g., Contain Outbreak Management Fund, a large number of different business grants schemes (both mandatory and discretionary), funding for support to the Clinically Extremely Vulnerable and funding for COVID Marshals. The Finance Service have set up new monitoring regimes to ensure that the funding has been applied to qualifying expenditure and that funding allocations have not been exceeded.
  7. Head of Internal Audit and Assurance Opinion
    1. Internal Audit is an assurance function that provides an independent and objective opinion to Bexley Council on its control environment. It operates to defined standards as set out in the Public Sector Internal Audit Standards (PSIAS). The Accounts and Audit Regulations contain a requirement for Councils to annually review the effectiveness of their internal audit and the PSIAS state that “External assessments must be conducted at least once every five years by a qualified, independent assessor or assessment team from outside the organisation”. The most recent assessment, carried out in March 2016, confirmed that the internal audit service at the London Borough of Bexley generally conforms to the UK PSIAS. There were no major or significant observations that need to be addressed. The next annual review will be undertaken during 2021/22.
    2. Bexley’s Internal Audit, Counter Fraud and Risk Management Services were part of the shared service arrangements with the London Borough of Havering and London Borough of Newham until 1 August 2020. The function is now provided in house under the Head of Assurance and Risk.
    3. The Head of Assurance opinion for 2020/21 is that reasonable assurance can be provided that the Council has an adequate control framework in place. However, the internal audit programme of work during 2020/21, and additional advisory work which supports the opinion, was restricted due to the reallocation of resources across the Council as a result of the COVID pandemic. Therefore, the reasonable assurance provided is restricted to the areas covered by the 2020/21 audit work undertaken.
    4. A significant internal audit completed in the 2020/21 audit plan reviewed the control issues arising from an overspend in the Housing Service in 2019/20. This audit identified significant issues within the Housing Service regarding the management of their budget. The audit also identified a number of cross-cutting control weaknesses.
    5. The Housing Service Overspend audit made recommendations at both a Housing Service and a Corporate level and the action plan agreed to address these issues continues to be monitored through CLT and the General Purposes and Audit Committee. Due to the actions taken by the Leadership Team and the improvements made to the control environment during 2020/21, the outcome of this audit is not considered to affect the overall rating of the control environment.
    6. As a result of audit work undertaken during 2020/21, the significant risk areas facing the Council which Internal Audit will focus on during 2021/22 will include:
      • the effectiveness of budget monitoring across the Council
      • the delivery of savings plans
      • compliance with financial controls, including the purchasing of goods and services and
      • the management of cybersecurity threats
    7. It should be noted that there have been significant reductions in resourcing levels across the Council between January to March 2021. Internal Audit will ensure that audit testing during 2021/22 provides assurance that the control environment remains robust in areas where resources have been reduced.
    8. The General Purposes & Audit Committee receives regular updates regarding the internal audit work plan, and risks and control issues identified during audits are highlighted in these reports.
  8. Conclusion
    1. We, the Chief Executive and Leader of the Council have been advised on the implications of the result of the review of the effectiveness of the governance framework by the General Purposes & Audit Committee and that the arrangements continue to be regarded as fit for purpose in accordance with the governance framework. The areas already addressed and those to be specifically addressed with new action plans are in the section below.

Chief Executive
Jackie Belton

Leader of the Council
Cllr Teresa O’Neill, OBE

Section A - 2019/20 Governance issues considered to be closed

Performance and Finance Monitoring issues to be addressed
Issue to be Addressed Performance and Finance Monitoring
Responsible Officer Director of Finance & Corporate Services
Details Improvements required in respect to the timeliness and scope of monitoring provided to the Corporate Leadership Team and Members by services/corporate function.
Planned Action 2020/21
  • a new suite of performance indicators for all Directorates, informed by benchmarking, will be established and reviewed annually
  • it is important that risk management and performance and budget monitoring activities are triangulated to ensure that issues are identified swiftly. The finance, staffing, risk and performance reports currently sit separately and these will be aligned during 2020/21
The quarterly performance report and monthly budget monitoring will be shared with Members through the portal.
Performance reporting established within each Directorate.
Performance Assessment at 31 March 2021 During 2020/21 a new set of performance indicators were agreed and monitored by the Corporate Leadership Team and reported publically to Cabinet. These were amended to include a number of COVID-19 related indicators to support the Council’s response to the pandemic. The performance reports include comments from Financial Services and the Assurance Team where performance is reported as an outlier or outside of tolerance.
The Finance monitoring reports have similarly been reported to the Corporate Leadership Team since month two (May 2020). The report has split variances between COVID and non-COVID related income and expenditure. The monitoring of grant income from the Government has been monitored and included within the report. The report has identified a series of mitigations to be taken to manage the forecast and control the financial position.
The reports have been shared both through Cabinet when possible publically and through the Members portal.
Planned Action 2021/22 This significant action has now been closed as the monitoring arrangements have now been fully re-established and embedded. However, further improvements need to be made around the triangulation of performance and monitoring which are now planned for 2021/22.
Setting a Balanced Budget for 2021/22
Issue to be Addressed Setting a Balanced Budget for 2021/22
Responsible Officer Director of Finance & Corporate Services
Details The Council was able to set a balance budget for the 2019/20 financial year. There continues to be pressure over the medium term to the Council due to increased service demand and demographic pressures while available resources are reducing. As outlined in the budget setting report for 2020/21 approved in February 2020, uncertainty around many aspects of the future funding model for Local Government remains a challenge in the medium term. However, over and above all this sits the COVID19 pandemic and the emergency response which was initiated nationally in March 2020. This has brought an unprecedented challenge to local government generally and requires a reconsideration of the MTFS that was agreed and the corporate approach to recovery.
The Council also needs to ensure that Members have all the required information to support their decision making regarding budget setting. The scale of the decisions which will be required is likely to be more significant than in previous years and the Council must ensure the decision-making process is fully transparent and subject to the appropriate consultation and scrutiny by Members. It should be noted that the virtual world we are currently operating in may present an additional challenge in terms of communication.
Planned Action 2020/21
  • the Council has accelerated the Budget Setting process for 2021/22, with an awayday taking place with Leader and Cabinet in March 2020 and the refresh of the Medium Term Financial Strategy going to Public Cabinet in July 2020 along with saving, efficiency and transformational opportunities
  • further work will take place throughout the summer months reporting back to Public Cabinet in November and December with a strategy to set a balanced budget for 2021/22 and reduced the long term budget gap
  • the Council will need to continue to manage and mitigate, where possible, the impact of the pandemic and consider the medium-term impact if further government funding isn’t provided
  • the Director of Finance and Corporate Services will need to monitor and report to Members regularly on the in-year budget monitoring position and the Medium Term Financial Strategy through Public Cabinet, Budget Scrutiny and wider briefings, to ensure all Members understand the size of the budget challenge for 2021/22 and the steps and timescales required to set a balanced budget
  • Members and Officers will need to continue to lobby the Government for further financial support for the pandemic for 2020/21 and into 2021/22 given the longer-term impact
  • the Dedicated Schools Grant places a significant financial risk to the Council and must be addressed through lobbying of the Department for Education to ensure a sustainable position can be achieved, specifically on the high needs block
  • the additional financial controls introduced in 2019/20 will need to continue and further steps taken to control income and expenditure
  • Budget Managers must take their responsibility seriously and manage their budgets within agreed parameters and put in place recovery plans where this cannot be achieved
Performance Assessment at 31 March 2021 After a significantly challenging year a balanced budget was set for 2021/22, was delivered and agreed by full Council based on the planning assumptions within the Medium Term Financial Strategy. This issue is considered closed for 2019/20. However, the focus for 2021/22 will be to ensure the savings, efficiency and transformation opportunities agreed by the Council are now delivered and mitigations put in place as necessary. The impact of COVID-19 was funded in 2020/21 in full, however, the impact of the pandemic is likely to cause pressures in 2021/22.
Planned Action 2021/22 There continues to be pressure over the medium term and a balanced budget will need to be set for 2022/23. Uncertainty around many aspects of the future funding model for Local Government still remains a challenge in the medium term and the continued COVID19 pandemic will create pressure on the council in 2021/22 as the impacts begin to materialise.
Risk Management issues to be addressed
Issue to be Addressed Risk Management
Responsible Officer Director of Finance & Corporate Services
Details Given the unprecedented financial challenges facing the Council, increased uncertainty and the need to transform, it is essential that Officers and Members continue to have a clear understanding of risk management. As the Council faces more threats than ever before, risk management arrangements need to triangulate the risks the Council is facing with the budget reporting mechanism; the performance monitoring framework; and, the external factors and the wider economic environment.
Planned Action 2020/21
  • regular updates of risk registers and reporting of new issues that have emerged and significant changes in the profiling of existing identified risks
  • Directorate and Strategic risk registers are reviewed and approved through DLTs and & CLT and reported to the Leader, Cabinet & GP&AC
  • training and advisory sessions for Officers, including budget holders, and Members
  • embedded focus and awareness of risks and risk management in decision-taking
  • risk management processes must move swiftly in this rapidly changing environment to ensure risks are updated as the threats to the Council change and develop
  • Directors will discuss their Directorate risks with relevant Cabinet Members
  • quarterly report of internal audits provided to Corporate Leadership Team and Cabinet and to the Chairman of General Purposes & Audit Committee. Reporting of internal audit reports directly to the Leader of the Council, the Cabinet Member for Resources and relevant Cabinet Member whose portfolio covers the respective report
  • review with General Purposes & Audit Committee how risk management, issues raised in internal audit reports and action plans are monitored and delivered
  • continued review of performance management quarterly reporting of KPIs to highlight areas of financial and service area risk and mitigating measures
  • risks will be clearly highlighted in any reports to Cabinet/ Council to inform decision making
Performance Assessment at 31 March 2021 Risk management has become more embedded throughout 2020/21. Risk workshops, led by the Internal Audit team, are undertaken at least quarterly with all Directorates and Strategic risks and a horizon scanning exercise are reviewed by CLT on the same timetable. Directorate risks are discussed with Lead Members at their Director meetings and the General Purposes and Audit Committee reviews the Strategic Risk Register on a six-monthly basis.
Planned Action 2021/22 Risk management is considered closed as a Significant Governance Issue. Risk management is now part of business as usual for the Council and work will continue to embed it at all levels of the organisation.
EU Exit issues to be addressed
Issue to be Addressed EU Exit - Preparations and Impact
Responsible Officer Director of Finance & Corporate Services
Details The Council is planning for when the UK leaves the European Union. The Council needs to ensure that it is ready for any outcome and the effect it will have on residents in the Borough.
As this is a time of uncertainty all efforts are being undertaken to ensure any effects from a ‘No Deal Brexit’ will be mitigated to a point whereby the impact will be reduced to a level that will not adversely impact on Service Delivery.
Planned Action 2020/21
  • the Emergency Planning and Business Continuity Team are gathering information from each department via their Business Continuity plans, to ensure that should a ‘No Deal’ Brexit occur, they could still maintain the services their teams provide to the community. This includes an assessment of any supply chain, staff availability and wider service impact
  • Heads of Service to review their own business continuity plans
  • the Council has worked closely with other official bodies such as London Resilience (who are acting as the focal point for information dissemination to Local Authorities from the Government), and London Councils. Also, within the Borough Resilience Forum, where the Bexley Emergency Team act as Chair, Brexit preparedness has been regularly raised as an agenda item for discussion
  • weekly meetings between the Council Emergency Planning & Business Continuity Manager and the London Resilience Forum to identify known issues
Performance Assessment at 31 March 2021 Business Continuity Plans were updated to reflect both the impact of the EU Exit and Brexit to ensure any risks were mitigated as much as possible.
The Council worked closely with London Resilience to ensure full engagement with preparedness.
Planned Action 2021/22 This issue is now closed as the UK has exited the European Union.

Section B - Governance issues partially addressed and continuing to 2020/21

Health and Safety issues to be addressed
Issue to be Addressed Health and Safety
Responsible Officer Deputy Director of Finance & Corporate Services
Details Regularity of Directorate H&S meetings must increase to ensure all managers are aware of basic requirements for training and risk assessment.
Strengthening required for the arrangements relating to the Council premises legislative requirements for fire and other hazards, including defining roles and responsibilities.
The OHSAS18001 Management System (and the transition to the new standard) will support the Council to ensure that it is meeting its health and safety obligations, although a further managerial focus on key actions such as compliance with mandatory training will be required.
Planned Action 2020/21
  • the Corporate Landlord model is now in development and will form after the new organisational blueprint has been agreed by the General Purposes & Audit Committee, and will start to be operational at the end of the year
  • H&S matters need better compliance monitoring where tenants have the responsibility
  • all commercial property decisions, both as leaser and lease will be taken by the Corporate Landlord
  • new PI indicators to include H&S compliance for the full estate
  • H&S COVID risk – managed through Gold group or CLT as appropriate
Performance Assessment at 31 March 2021 The Council has maintained its OHSAS18001 accreditation for a Health and Safety Management system, following external review.
The monitoring of property compliance checks and subsequent remedial actions was insourced, following the cessation of the Amey contract, from 1 September 2020. However further work is required on this in 2021/22 to ensure that it forms part of the PI indicators being monitored by the Corporate Leadership Team and subsequently Members.
Following the transfer and subsequent combining of Property Services and Facilities Management in November 2020, the Corporate Landlord model has been developed and piloted within Community Service and will continue to the end of July 2021.
Planned Action 2021/22 Continuation of the Corporate Landlord model role out includes a six-month review.
New PI indicator put in place from 1 April 2021 to monitoring property based compliance checks.
Transition from OHSAS18001 Management System to the new standard.
Financial Services issues to be addressed
Issue to be Addressed Financial Services
Responsible Officer Director of Finance & Corporate Services
Details Following the Finance Service coming back under the direct control of the Council, from 1 August 2020, the service needs to be improved to ensure it can meet the needs of the organisation, allow the Director to meet their statutory responsibilities more consistently and ensure the future financial sustainability of the Council.
Planned Action 2020/21
  • the restructuring and improvement of the finance function presents a risk and governance challenge
  • a finance improvement programme has been put in place to improve the service to meet the needs of the organisation and enhanced the financial control environment
  • the improvement plan spans 12 to 18 months, with the majority of deliverables being delivered in the 2021/22 financial year
  • regular updates on how the Council will monitor the performance for the year ahead will continue to be provided to the Resources and Growth Overview and Scrutiny Committee and General Purposes & Audit Committee
  • at the time of this statement, there is a significant proportion of temporary staff within the Finance Team. Permanent recruitment will need to be undertaken once the restructure has been agreed and the risk of loss of knowledge as we switch to a permanent staffing base addressed
Performance Assessment at 31 March 2021 The Finance Improvement plan was implemented in September 2020 following the departure from OneSource. Significant progress has been made on the plan with a new structure agreed and new finance and reporting systems being implemented. The new finance system went live on 1 April 2021 and will continue to be developed to support the financial control environment.
The role of budget holders and business partners has been developed and a survey to identify training needs put in place which is now embedded as part of the new plan.
Briefings for the Resources & Growth Overview and Scrutiny have taken place and formal reports have been provided to both this Committee and the General Purposes & Audit Committee.
Planned Action 2021/22 The improvement plan is set to continue through most of 2021/22 and will continue to be a governance issue during the year. The recruitment to the new structure will take place early in the year however, until then, there is still a significant proportion of temporary staff within the Finance Team and the risk of loss of knowledge as we switch to a permanent staffing base is still relevant.
Housing Service issues to be addressed
Issue to be Addressed Housing Service
Responsible Officer Director of Place
Details The Housing Service had a material overspend, based largely on Temporary Accommodation costs, at the end of 2019/20 which had not been raised during the financial year by the budget holder. This was the third year in a row for the service to overspend.
The former governance risk identified was for the supply of temporary accommodation. This was too narrow an interpretation of the risk - managing costs and demand. An internal audit is being concluded to understand the cause of the overspend and the reason for late reporting to ensure this does not happen again. This does identify a control weakness within the service.
Planned Action 2020/21
  • an audit has been commissioned of the circumstances leading to the unreported overspend
  • a Housing Improvement Board project group has been set up to review all areas of the Housing Service and address issues identified
  • improvement plan to be developed and put in place to ensure more robust management practices and systems result in accurate reporting and financial forecasting
  • new management structure to be implemented
  • regular briefing to Lead Members
  • regular reports to Cabinet and Members through relevant committees on the progress being made
  • improvements to the budget setting process for this service area, performance, monitoring and oversight to be put in place. Cost control and demand planning to be improved
  • performance reporting to be introduced and enhanced
  • need to address significant and longstanding weaknesses in the control environment
  • adoption of the Housing Strategy will be agreed in 2020/21
  • the Housing allocation policy will be reviewed
  • further assurance will be provided on the improvement plan by the Internal Audit team during 2020/21 and 2021/22 the year
Performance Assessment at 31 March 2021 A Housing Improvement Programme was developed in the summer 2020 to take forward improvement activity in relation to all council-managed housing functions. with a strong focus on operational matters:
  • financial management
  • systems to model, manage and track ‘on demand’ services and
  • systems and processes to improve financial forecasting accuracy
As part of the Council’s blueprint organisation changes, responsibility for the Housing Service was transferred to the Deputy Director, Housing and Strategic Planning in September 2020. A new Head of Housing Services also started at this time and the new Director of Place started in October 2020. This new management for the service carried out a fundamental review of all elements of operational, and financial performance, to ensure that Housing Improvement Programme activity focused on those areas of highest priority, namely: ensuring operational resilience and financial management; effectively managing service demand, and; maximising the supply of housing stock available.
The areas of short-term activity being taken forward through the Housing Improvement Programme are summarised below and are grouped into three categories - establishing operational resilience; effectively managing demand; maximising supply.
Short term activity
Establishing operational resilience
  • ensuring that the recommendations for the Housing Service in the Housing Overspend Internal Audit are urgently addressed
  • developing a new organisational structure
  • improving financial modelling and forecasting
  • introducing new processes within the housing services
  • implementing new IT systems
  • tracking new duties and their impact
Effectively managing demand
  • reducing numbers in temporary accommodation
  • introducing a temporary accommodation panel
  • reviewing Bexley’s approach to accepting housing duties including out of hours and at our ‘front door’
  • preparing for winter/work with rough sleepers
Maximising supply
  • bringing the Homeleigh hostel back into use
  • carrying out a full contract review and developing a new, improved strategy for commissioned services
  • undertaking an urgent review of arrangements with Capital Letters, the Social Impact Bond and Kent savers
  • starting urgent work with Registered Providers to improve access to void units thereby improving supply
  • encouraging registered providers (RPs) to identify long term voids that may need to be re-purposed and evolving a plan to do so
  • making better use of Private Sector Leased properties, including a move to direct offers
Medium and longer-term activity
There is a significant body of work to be done corporately in 2021 in the context of our new housing strategy and the Housing Improvement Programme, including:
  • developing an accurate and reliable financial model in place for budgeting and forecasting placements
  • clarifying the roles and responsibilities for staff managing budgets
  • concluding and implementing the allocations review
  • a review of nil recourse to public funds budgets, processes and procedures
  • a review of how all properties are sourced and managed including Bexley’s hostels
  • a review of how we best support our care leavers
  • a review of our offer for residents who may need our support to stay in their homes, often following hospital discharge incl. DFGs and former staying put type service
  • a review of our offer for older residents
  • producing and publishing a Homelessness Strategy
  • producing and publishing a Rough Sleepers Strategy
  • putting in place a final Housing team structure
  • reflecting the outcome of the above in a new commissioning strategy
  • implementing Council led commitments in the Housing Strategy
  • a review of our approach to debt and recovery
Work is underway to develop a comprehensive programme management structure to ensure that this activity is effectively progressed and monitored and, critically, that all partners across the Council and externally are fully engaged and involved in the work. It is important that the housing improvement work is managed in a coordinated way across all services and organisations with a stake in the housing service in Bexley.
As part of this activity, detailed work is taking place with colleagues in Adults’ Social Care and Children’s Services to ensure that changes to policy and practice are coordinated with social care activity, and to ensure that there is a single-organisation approach to the management of housing need.
Planned Action 2021/22 The Housing Improvement Programme will continue into 2021/22, focusing on those areas of medium-long term activity. It is hoped that this work will largely become “business as usual” as the new structures, practices and relationships bed down and become more stable and well-established.

Section C - New governance issues to address in 2021/22

COVID-19 Response issues to be addressed
Issue to be Addressed COVID-19 Response
Responsible Officer Chief Executive
Details The ongoing threat of COVID 19 and how the Council responds to impacts of the pandemic, from a service delivery and financial impact aspect, continue to be a risk to the Council during 2021/22.
Planned Action 2020/21
  • facilitating recovery and the return to the new normality through a Council and Service Recovery Plans
  • overseeing Outbreak Management Plans including monitoring Track and Trace
  • establish effective surge testing protocols
  • identification of variants of concern and Council response plan for these
  • manage local impacts of breakouts/surges
  • to take an evidence-based and proactive approach in identifying any action(s) necessary to highlight or reduce specific risks of the impact of coronavirus faced by any group, community or individual likely to be disproportionately affected
  • to monitor and model the financial impact the pandemic has had on Council services specifically parking, leisure, waste, adult social care, children social care and housing
Budget Management issues to be addressed
Issue to be Addressed 2021/22 Budget Management and setting of 2022/23 Balanced Budget
Responsible Officer Director of Finance & Corporate Services
Details A balanced budget was set for 2021/22 was delivered and agreed by full Council based on the planning assumptions within the Medium Term Financial Strategy. There continues to be pressure over the medium term and a balanced budget will need to be set for 2022/23. Uncertainty around many aspects of the future funding model for Local Government still remains a challenge in the medium term and the continued COVID19 pandemic will create pressure on the council in 2021/22 as the impacts begin to materialise.
Planned Action 2020/21
  • the Director of Finance and Corporate Services will monitor and report to Members regularly on the in-year budget monitoring position and the Medium Term Financial Strategy through Public Cabinet, Budget Scrutiny and wider briefings
  • Budget Managers must take their responsibility seriously and manage their budgets within agreed parameters and put in place a recovery plan where this cannot be achieved
  • increased scrutiny of budget management will be undertaken during 2021/22 to ensure the above point
  • Members and Officers will need to continue to lobby the Government for further financial support for the pandemic given the longer term impact
  • Officers will ensure demographic-based funding is evidenced
  • the additional financial controls introduced in 2019/20 will need to continue and further steps taken to control income and expenditure
Service planning issues to be addressed
Issue to be Addressed Clarity of service planning and Council priorities
Responsible Officer Director of Finance & Corporate Services
Details The implementation of expenditure reductions, including the Organisational Blueprint and individual business cases, has reduced the number of resources at all levels across the Council. Therefore, it essential that key priorities are identified and service plans adjusted accordingly to ensure that the Council delivers its core objectives.
Planned Action 2020/21
  • corporate priorities and Service Plans are being reviewed by CLT and Members to ensure that clarity is provided about the objectives of the Council
  • objectives to be prioritised by CLT and Members to ensure there is clarity about delivery priorities
  • performance is being monitored to provide assurance that Council services continue to be delivered against the reduced resource base
  • individual services are reviewing their processes and systems to ensure they can deliver services as efficiently as possible, for example through increased digitalisation
Complaints issues to be addressed
Issue to be Addressed Significant complaints that involve a number of Council services are not responded to appropriately
Responsible Officer Director of Finance & Corporate Services
Details There is a risk of escalation to the Ombudsman leading to a negative decision with a subsequent financial and reputational impact if an inadequate response is provided to a serious complaint, particularly if it involves a number of service areas. Ownership and responsibility for a complaint may be split between several different service areas, which means that a consistent response may not be provided. It may also be challenging to identify a Senior Manager to respond to such a complaint in accordance with our complaints policy and individual services may only respond to their aspect of the complaint. This may not be consistent with the response provided by other services and/or adequately deal with all the issues raised by the complainant properly increasing the likelihood that the complaint will be escalated.
Planned Action 2020/21
  • oversight is provided by the Complaints Team who coordinate responses involving multiple service areas who will ensure they are consistent and deal with all the issues raised by the complainant
  • robust monthly reporting mechanisms are in place at all DLTs and CLT regarding complaints received and their status
  • services are required to brief their Lead Member and Council Leader on negative decisions made by the Ombudsman
  • negative Ombudsman decisions are reported to the Scrutiny Committee