Guernsey Water Annual Report 2016

Guernsey Water 2016 Annual Report CORPORATE GOVERNANCE 24 annualreport2016 CORPORATE GOVERNANCE Compliance The States Trading Supervisory Board (STSB) provides political oversight of Guernsey Water’s delivery of the relevant operational functions conferred on the STSB by legislation and resolutions of the States of Guernsey. The States’ Committee for the Environment & Infrastructure is responsible for the development of government policy relating to the island’s water resources and drainage. The STSB is responsible for challenging and helping to develop strategy that enables Guernsey Water to meet these policy requirements and other States’ strategic aims. The STSB evaluates the performance of Guernsey Water leadership by monitoring business performance. They consider the integrity of financial information and the strength of financial controls and compliance with the States’ rules and directives. GuernseyWater recognises the value of proportionate and relevant application of good practice principles in corporate governance - predominantly those contained within the UK Corporate Governance Code published in September 2014. Guernsey Water is committed to working with the STSB to further developing the application of these principles in a way that is relevant to its governance as an unincorporated trading asset. Election and Constitution of the States Trading Supervisory Board The constitution and membership of the STSB is determined by the States of Guernsey upon the recommendation of the Policy & Resources Committee. As a minimum the president, and at least one other member of the board, shall be States deputies and at least two other board members not be States deputies. Once appointed the board is responsible for the election of its vice-president from within its membership. None of the STSB members are able to serve on the States’ Transport Licensing Authority. The constitution of the board allows for the recruitment of individuals with an appropriate balance of political and commercial skills with the expectation being that those members who are not States’ members have skills in connection with setting strategic direction, corporate governance, board and shareholder responsibilities, strategic and operational benchmarking and so forth. On 21 September 2016 13 the States agreed that it would not appoint more members beyond the minimum requirements set out above. Board Transition 2016 was a year of transition for the governance of Guernsey Water. On 27 November 2015 14 the States resolved that, as part of a reorganisation of States affairs, the STSB would be established as a committee of the States on 1 May 2016. From January to April 2016 political oversight of Guernsey Water continued to be provided by the Public Services Department Board which was dissolved following the restructuring of government. On 21 September a States member was elected as STSB 15 president to serve the unexpired term of office of the late president who was elected on 11 May 2016 16 . On 18 May a States member was elected as member of the STSB until 30 June 2020 17 . On 21 September, following an open and robust recruitment process, two voting members of the STSB, that are not members of the States, were elected. The term of all STSB members aligns with the electoral cycle and ends on 30 June 2020 18 . Board Information and Professional Development States of Guernsey Trading Assets includes a corporate services team responsible for providing administrative and secretariat support to the STSB. They also give guidance on States committee procedures and governance. For each scheduled board meeting the Corporate Services team ensures that, during the week before the meeting, STSB members receive a copy of the meeting agenda, financial, strategic and operating