This Code sets out requirements for the conduct of the members of the Commission.

The members of the Commission are the three Local Government Ombudsmen for England and the Parliamentary Ombudsman. All the provisions of this Code apply to the Local Government Ombudsmen in the discharge of their duties both as Ombudsmen and as members of the Commission. The provisions relate to the Parliamentary Ombudsman only as to her participation in the management and accountability of the Commission as a corporate body, since she has no responsibilities for the consideration of complaints made under the Local Government Act 1974.

The original version of this Code was based on a model Code of Best Practice for Board Members of Public Bodies issued by the Treasury in June 1994, which the Commission adapted to take account of its own particular characteristics and circumstances.

The Treasury's model Code of Best Practice was subsequently revised by the Cabinet Office in January 1997 to take account of subsequent developments, including:

This Code has been revised in the light of the guidance issued by the Cabinet Office in 1997, adapted as before to take account of the Commission's particular characteristics and circumstances.

The members of the Commission must at all times:

The members of the Commission will at all times strive to achieve the following values:

The functions of the Commission are set out in Part III of the Local Government Act 1974 (as amended). The relationship between the Commission and the DCLG is set out in the Grant Memorandum.

The Chairman has a particular responsibility for providing effective strategic leadership in:

The Chairman will ensure that the Commission meets at regular intervals throughout the year and that minutes of meetings accurately record decisions taken and, where appropriate, the views of individual Commission members.

Communications between the Commission and the Secretary of State will normally be through the Chairman except where the Commission has agreed that an individual member should act on their behalf. Individual members have the right of access to the Secretary of State on any other matter which he or she believes raises important issues relating to his or her duties as a member of the Commission. In such cases the agreement of the rest of the Commission would normally be sought.

The Chairman will ensure that all members of the Commission, when taking up office, are fully briefed on the terms of their appointment and on their duties, rights and responsibilities.

Members of the Commission have a corporate responsibility for ensuring that the Commission complies with any statutory or administrative requirements for the use of public funds. Other important responsibilities of Commission members include:

It is the responsibility of members of the Commission collectively to oversee the production of the Commission's annual business plan. The plan should set out the policy and resources framework within which the Commission will discharge its duties and its key strategic objectives and targets.

Responsibility for day-to-day management matters will be delegated to staff so far as is practicable, within a clearly understood framework of strategic control.

The Commission may decide to delegate, where it has power to do so, the taking of decisions on specified matters to the Chairman, other members, the Secretary of the Commission or such other person as the Commission may decide.

Individual Commission members should be aware of their wider responsibilities as members of the Commission. Like others who serve the public, they should follow the Seven Principles of Public Life set out by the Committee on Standards in Public Life (the Nolan Committee), within the requirements of the Local Government Act 1974. The principles are printed at Appendix 1. Commission members must:

Commission members must not take part in any party political activity at national, regional or local level. They must abstain from all controversial political activities. In particular, they must not make political speeches or engage in other political activities.

Members of the Commission must declare any personal or business interests which may conflict with their official duties and responsibilities. Any such conflicts must be identified at an early stage so that appropriate action can be taken to deal with them. Commission members must take no part in the consideration of a matter in which they have a significant financial or non-financial interest. A register of interests of Commission members will be kept for this purpose and will be available for public inspection. (The register for individual members will cease to be available for public inspection as soon as a member leaves the Commission and but will be kept for 12 months after that date, after which it will be destroyed.) Notes of guidance will be maintained setting out which categories of interest should be declared and kept on the register. The notes of guidance are printed at Appendix 2.

Commission members must not accept hospitality or any material gift which might prejudice or conflict with their duties or responsibilities as set out in the Local Government Act 1974 or this Code.

Because the Commission follows generally accepted accounting practice, Commission members must facilitate compliance with the need under Financial Reporting Standard 8 for material transactions with related parties to be disclosed in financial statements. `Related parties' in FRS 8 include close members of the family of an individual, who are defined for the purposes of the standard as those family members, or members of the same household, who may be expected to influence, or be influenced by, that person in their dealings with the Commission.

Legal proceedings initiated by a third party may be brought either against the Commission or against the Chairman or other Commission members: for example, an action for defamation in a document produced by the Commission, but not covered by the statutory absolute privilege, might be brought against both the Commission and the writer. An action relating to occupiers' liability is more likely to be against the Commission, but could also possibly be brought against the Ombudsman as manager of the team in the particular office. If a member of the Commission has acted honestly, reasonably and in good faith and without negligence the Commission will indemnify him or her against any personal liability incurred in the execution of his or her functions as a member of the Commission or as an Ombudsman, and such indemnity will include the legal costs incurred in defending any such legal proceedings.

Commission members who need further advice should consult the Commission's Legal Adviser.

Commission members and their staff should conduct all their dealings with the public in an open and responsible way and ensure compliance with the Commission's Guidance on Public Rights to Information, subject to the provisions of the Local Government Act 1974.

The members of the Commission will ensure they can demonstrate that they are using resources to good effect, with propriety, and without grounds for criticism that public funds are being used for private, partisan or party political purposes. They will need to act consistently with the nature of the Commission's work and the possible need for confidentiality on commercial or other grounds. There should be internal procedures available to deal with complaints, including those on failure to provide information.

Commission members have a duty to ensure the safeguarding of public funds - which for this purpose should be taken to include all forms of receipts from fees, charges and other sources - and the proper custody of assets which have been publicly funded. They must take appropriate measures to ensure that the Commission at all times conducts its operations as economically, efficiently and effectively as possible, with full regard to the relevant statutory provisions and to relevant guidance in Government Accounting.

As part of their responsibilities for the stewardship of public funds, Commission members must ensure that they include a full statement of the use of such resources in their Annual Report and Accounts. The Annual Report should contain a summary of the Annual Accounts and give details of how to obtain the full Accounts. The Annual Report should state whether the audit report on the Annual Accounts was qualified and provide details if this was the case.

The Annual Report and Accounts will provide a full description of the Commission's activities; state the extent to which key strategic objectives and agreed financial and other performance targets have been met; list the names of the current members of the Commission; and provide details of remuneration of Commission members and senior staff in accordance with Treasury guidance. The Annual Report should contain information on access to registers of interests in accordance with paragraph 9 of the Commission's Notes of Guidance.

The Chairman of the Commission is the Commission's chief executive. He has responsibility, under the Commission, for the overall organisation, management, and staffing of the Commission and for its procedures in financial and other matters. This involves the promotion by leadership and example of the values embodied in the Nolan Committee's Seven Principles of Public Life. Commission members should support the Chairman, as chief executive, in undertaking this responsibility.

The Chairman of the Commission will be designated as the Commission's accounting officer. He is responsible to Parliament and the accounting officer of the DCLG for the resources under the Commission's control. The essence of the role is a personal responsibility for the propriety and regularity of the public finances for which he is answerable; for the keeping of proper accounts; for prudent and economical administration; for the avoidance of waste and extravagance; and for the efficient and effective use of all the resources in his charge. The accounting officer has a responsibility to see that appropriate advice is tendered to the Commission on all these matters.

More detailed guidance on the role of an accounting officer is set out in the Commission's Grant Memorandum and the Treasury's handbook, `Regularity and Propriety'.

The Commission's Grant Memorandum requires that the Commission should ensure that its control systems are subject to effective, independent internal audit scrutiny in line with the requirements of the Government Internal Audit Manual.

The Commission should ensure:

This Guidance is provided in accordance with paragraph 19 of the Code of Conduct for Commission members.

The Secretary to the Commission will be responsible for setting up and maintaining the Register of Interests.

This Guidance applies to the Local Government Ombudsmen in the discharge of their duties both as Ombudsmen and as members of the Commission, and applies to the Parliamentary Ombudsman only as to her participation in the management and accountability of the Commission as a corporate body.

Each Commission member will make an initial declaration of interest by completing the standard form, annexed to these notes, and giving it to the Secretary. Each newly appointed Commission member will be given a copy of these Notes of Guidance and similarly required to make an initial declaration of interest.

Commission members will notify the Secretary, using the standard form, of any additions to or changes to their initial declaration of interest within one month of any such change.

Each year, the Secretary will send to each Commission member a copy of the consolidated entry from the Register of Interests relating to him or her and will ask the member to confirm in writing that the information contained in the Register is complete and up to date and, if not, to amend it.

The following general points should be noted by Commission members:

It will be helpful to public understanding of the Register if any organisations named in the Declaration also have a brief note of their key activity (eg Company Y (house-builder)).

The Register will contain information on each Commission member's significant and relevant financial and non-financial interests (ie those interests which could lead to a potential conflict of interest - see paragraph 7). The need to declare a potential conflict of interest goes wider however than the declarations required for the Register. In particular, it may include interests through family connections, personal friendships and business associations, including debtor/creditor relationships.

A conflict of interest may arise in a variety of circumstances spanning the work of the Commission. These may include decisions on:

complaints made under the Local Government Act 1974;

land or property transactions with the Commission;

Commission members should avoid situations in which conflicts of interest could arise.

When a Commission member knows or suspects that a conflict of interest will arise he or she should immediately write to the Secretary explaining the position (with a copy to the Chairman). Should a Commission member become aware of a possible conflict during the course of a Commission or other meeting he or she should declare it without delay (for formal record in the minutes).

Where a Commission member has declared a significant and relevant interest he or she should not take part in any deliberation or decision of the Commission with respect to the matter. The Commission member should normally withdraw from the room during any consideration of the matter at a meeting.

Please refer to paragraph 11 of the Notes of Guidance for details

If no interest to declare, please enter `none'

Please include a brief note of the key activity of any organisation named

If insufficient room, please photocopy extra pages