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25 SLC Framework Document Annex A REGISTER OF APPROVED ACTIVITIES FOR THE STUDENT LOANS COMPANY LIMITED In accordance with paragraphs 1.3 and 1.4 of the Student Loans Company Limited s ( SLC) Framework Document the SLC is specifically responsible for undertaking certain delegated statutory functions in relation to student loans and grants as specified by the Responsible Minister and Devolved Ministers and to perform related activities to assist in achieving Departments policy objectives from time to time. These functions and activities and the relevant authorities for undertaking them are listed by title and brief descriptive summary in this Register of approved activities which forms Annex A of the Framework Document. The Company Secretary of the SLC is responsible for reviewing and updating this Register accurately and the detailed documentation summarised in this Register, the contents of which will be reviewed annually with the Departments. New activities may only be added to this Register where they are jointly agreed by the Departments. In general approval will be given if the new activity has been subjected to an impact assessment and the Departments are content that the resulting analysis provides assurance that the new activity is appropriately funded and will not adversely affect core functions and priorities set by the Responsible Minister and Devolved Ministers. The Sponsor Department will then confirm that such approved functions and activities may be added to the Register. Words and phrases used above shall have the same meanings as they have in the Framework Document for the SLC. The Register of Approved Activities is a living document which will continually be updated when new functions are added or when the authority for an existing function is amended or updated. The latest version of the Register will be available on the SLC website as part of their Freedom of Information Publication Scheme. Any queries in relation to the Register should be directed to SLC in the first instance. 1 As at 03 September

26 SLC Framework Document Annex A REGISTER OF APPROVED ACTIVITIES FOR THE STUDENT LOANS COMPANY LIMITED Part A Delegated Statutory Functions Administration Authority Details of Authority Date Renewal Required 1. Delivery of Financial Support to Eligible Higher Education Students Department Business, Innovation Skills ( BIS ) for and (A) Notice of Appointment in respect of specified functions under The Education (Student Support) Regulations 2009, as amended, made under the provisions of section 23(4) of The Teaching and Higher Education Act (B) Notice of Appointment in respect of specified functions under The Education (Student Support) Regulations 2011, as amended, as made under the provisions of section 23(4) of the Teaching and Higher Education Act These appointments give SLC authority to carry out functions in relation to the assessment of entitlement to maintenance loans, grants and tuition fee loans and payment of maintenance loans and grants for both current and old system students 1, including disabled students allowance, travel grants and grants for dependants. (A) Applies to functions carried out in respect of any academic year beginning on or after 1 September 2010 but before the academic year beginning on or after 1 September (B) Applies to specified functions carried out in respect of the academic year beginning on or after 1 September 2011, and to specified functions carried out in respect of any academic year beginning on or after 1 September (A) 11 November 2010 (B) 28 November 2011 Each time new regulations are laid or, when necessary, amending regulations are laid. SLC is also authorised to recover 1 An old system student is generally a student who began their course before 01/09/2006 and a current system student is generally a student who began their course on or after 01/09/2006, although exceptions are contained in the Regulations. 2 As at 03 September

27 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required BIS Notice of Appointment in respect of functions under The Education (Student Support) (European University Institute) Regulations 2010 as amended, as made under section 23(4) of The Teaching and Higher Education Act Welsh Government (A) Notice of Appointment in respect of specified functions under the Assembly Learning Grants and Loans (Higher Education) (Wales) (No. 2) Regulations 2008 as made under section 23(4) of The Teaching and Higher Education Act (B) Notice of Appointment in respect of specified functions under the Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2009, as amended, made under section 23(4) of The Teaching and Higher Education Act (C) Notice of Appointment in respect of specified functions under the Assembly Learning overpayments of student support as delegated by BIS. The appointment gives SLC the authority to carry out functions in relation to the assessment and payment of financial support to English domiciled postgraduate students taking designated courses at the European University Institute in respect of any academic year beginning on or after 1 September These appointments give SLC the authority to carry out certain functions which are not carried out by the Minister for Education and Skills including making payments of grants and loans for living costs. (A) Applies to functions carried out in respect of the academic year beginning on or after 1 September (B) Applies to functions carried out in respect of the academic year beginning on or after 1 September (C) Applies to functions carried out in respect of the academic year beginning on or after 1 September (D) Applies to functions carried out in respect of the academic year beginning on or after 1 September (E) Applies to functions carried out in respect of the academic year beginning on or after 1 11 February 2011 Each time new regulations are laid or, when necessary, amending regulations are laid. (A) 16 February 2009 (B) 21 December 2009 (C) 17 February 2011 (D) 21 March 2012 (E) 05 February 2013 Each time new regulations are laid or, when necessary, amending regulations are laid. 3 As at 03 September

28 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required Grants and Loans (Higher Education) (Wales) Regulations 2011, as amended, as made under section 23(4) of The Teaching and Higher Education Act September SLC is also authorised to recover overpayments of student support as delegated by the Welsh Government. Welsh Government (D) Notice of Appointment in respect of specified functions under the Assembly Learning Grants and Loans (Higher Education)(Wales)(No.2) Regulations 2011, as amended, as made under section 23(4) of The Teaching and Higher Education Act (E) Notice of Appointment in respect of specified functions under the Education (Student Support)(Wales) Regulations 2012, as made under section 23(1) of the Teaching and Higher Education Act Notice of Appointment in respect of specified functions under the Assembly Learning Grants (European University Institute) (Wales) Regulations 2009, as amended, as made under section 23(4) of The Teaching and Higher Education Act The appointment gives SLC the authority to carry out functions in relation to the assessment and award of financial support to Welsh domiciled postgraduate students taking designated courses at the European University Institute in respect of any academic year beginning on or after 1 September June 2010 Each time new regulations are laid or, when necessary, amending regulations are laid. Welsh (A) Notice of Appointment in The appointment gives SLC the authority to (A) 14 December Each time new 4 As at 03 September

29 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required Government respect of specified functions under The Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2011, as amended, as made under section 23(4) of The Teaching and Higher Education Act carry out functions to administer the partial cancellation of student loans scheme on behalf of the Welsh Ministers. (A) SLC will be able to award students who take out a maintenance loan from Student Finance Wales in either academic year 2010/11 or 2011/12 a partial cancellation of up to 1,500 in certain circumstances (B) 13 August 2012 regulations are laid or, when necessary, amending regulations are laid. Welsh Government Welsh Government (B) Notice of Appointment in respect of specified functions under The Cancellation of Student Loans for Living Costs Liability (Wales) Regulations 2012, as made under section 23(4) of the Teaching and Higher Education Act Notice of Appointment in respect of specified functions under The Assembly Learning Grants (European Institutions) (Wales) Regulations 2011 as made under section 23(4) of The Teaching and Higher Education Act Notice of Appointment in respect of specified functions under The Education (European Institutions) and Student Support (Wales) Regulations 2013 as made under section 23(4) of The Teaching and Higher (B) SLC will be able to award students who take out a maintenance loan from Student Finance Wales in academic year 2012/13 a partial cancellation of up to 1,500 in certain circumstances. The appointment gives SLC the authority to carry out functions in relation to the assessment and award of financial support to Welsh domiciled postgraduate students taking designated courses at the College of Europe or the Bologna Center in respect of any academic year beginning on or after 1 September 2011 but before the academic year beginning on or after 1 September The appointment gives SLC the authority to carry out functions in relation to the assessment and award of financial support to Welsh domiciled postgraduate students taking designated courses at the College of Europe or the Bologna Center in respect of any academic year beginning on or after 1 September April 2011 Each time new regulations are laid or, when necessary, amending regulations are laid. 28 June 2013 Each time new regulations are laid or, when necessary, amending regulations are laid. 5 As at 03 September

30 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required DEL, Ireland Northern Education Act Notice of Appointment in respect of functions under The Education (Student Support) Regulations (Northern Ireland) 2009, as amended, as made under Article 4(1) of The Education (Student Support) (Northern Ireland) Order These appointments give SLC authority to carry out specified functions in relation to the assessment of entitlement to maintenance loans, grants and loans for tuition fees under the Income Contingent Scheme and payment of maintenance loans and grants for both current and hold system students, including disabled students allowance, travel grants and grants for dependants. (A) 3 April 2009 (B) 14 January 2010 Each time new regulations are laid or, when necessary, amending regulations are laid. Scottish Ministers (Loans Only) 2. Administer Tuition Fee Loans Notice of Appointment in respect of functions under the Education (Student Support) No 2 Regulations (Northern Ireland) 2009, as amended, as made under Article 4(1) of the Education (Student Support) (Northern Ireland) Order Notice of Appointment in respect of functions under The Education (Student Loans) (Scotland) Regulations 2007 as made under sections 73(f), 73B and 74(1) of The Education (Scotland) Act (A) applies to functions carried out in respect of the academic year beginning on or after 1 September 2009 and (B) applies to functions carried out in respect of any academic year beginning on or after 1 September SLC is also authorised to recover overpayments of student support as delegated by DEL. The appointment authorities SLC to carry out specified functions in relation to the payment of maintenance loans. 24 August 2009 Each time new regulations are laid or, when necessary, amending regulations are laid. BIS (A) Notice of Appointment in respect of functions under The Education (Student Support) (No. 2) Regulations 2008, as amended, as made under section 23(4) of The (A) Authorises SLC to carry out specified functions in relation to the administration of loans for fees payable under Regulation 109 in respect of the academic year beginning on or after 1 September (A) 8 December 2008 (B) 11 November 2010 (C) 28 November Each time new regulations are laid (usually annually) or, when necessary, amending 6 As at 03 September

31 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required Teaching and Higher Education Act (B) Notice of Appointment in respect of functions under The Education (Student Support) Regulations 2009, as amended, as made under section 23(4) of The Teaching and Higher Education Act (B) Authorises SLC to carry our specified functions in relation to the administration of loans for fees payable under Regulation 110 in respect of any academic year beginning on or after 1 September 2010 but before the academic year beginning on or after 1 September regulations are laid. Welsh Government (C) Notice of Appointment in respect of functions under The Education (Student Support) Regulations 2011, as amended, as made under section 23(4) of The Teaching and Higher Education Act (A) Notice of Appointment in respect of specified functions under The Assembly Learning Grants and Loans (Higher Education) (Wales) (No. 2) Regulations 2008 as made under section 23(4) of The Teaching and Higher Education Act (C) Authorises SLC to carry our specified functions in relation to the administration of loans for fees payable under Regulation 113 in respect of any academic year beginning on or after 1 September (A) Authorises SLC to carry our specified functions in relation to the administration of loans for fees payable under Regulation 55 in respect of the academic year beginning on or after 1 September (A) 16 February 2009 Each time new regulations are laid (usually annually) or, when necessary, amending regulations are laid. (B) Notice of Appointment in respect of specified functions under The Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2009 as made (B) Authorises SLC to carry out specified functions in relation to the administration of loans for fees payable under Regulation 61 in respect of the academic year beginning on or after 1 September (B) 21 December As at 03 September

32 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal under section 23(4) of The Teaching and Higher Education Act Required (C) Notice of Appointment in respect of specified functions under The Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2011, as amended, as made under section 23(4) of The Teaching and Higher Education Act (C) Authorises SLC to carry out specified functions in relation to the administration of loans for fees payable under Regulation 64 in respect of the academic year beginning on or after 1 September (C) 17 February 2011 DEL, Ireland Northern (D) Notice of Appointment in respect of specified functions under The Assembly Learning Grants and Loans (Higher Education) (Wales) (No.2) Regulations 2011, as amended, as made under section 23(4) of The Teaching and Higher Education Act (A) Notice of Appointment in respect of functions under The Education (Student Support) Regulations (Northern Ireland) 2009, as amended, as made under Article 4(1) of The Education (Student Support) (Northern Ireland) Order (B) Notice of Appointment in (D) Authorises SLC to carry out specified functions in relation to the administration of loans for fees payable under Regulation 64 in respect of the academic year beginning on or after 1 September (A) Authorises SLC to carry out specified functions in relation to the administration of loans for fees payable under Regulation 102 in respect of the academic year beginning on or after 1 September (B) Authorises SLC to carry out specified functions in relation to the administration of loans for fees payable under Regulation 99 in respect of any academic year beginning on or after 1 September (D) 19 March 2012 (A) 3 April 2009 (B) 14 January 2010 Each time new regulations are laid or, when necessary, amending regulations are laid. 8 As at 03 September

33 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required Scottish Ministers respect of functions under The Education (Student Support) (No. 2) Regulations (Northern Ireland) 2009, as amended, as made under Article 4(1) of The Education (Student Support) (Northern Ireland) Order Notice of Appointment in respect of specified functions under The Education (Student Loans for Tuition Fees) (Scotland) Regulations Ensure Repayment of Income Contingent Repayment Loans Authorises SLC to carry out specified functions in relation to the administration of loans for fees payable under Regulation August 2009 Each time new regulations are laid or, when necessary, amending regulations are laid. All Memorandum of Understanding ( MOU ) between DIUS, HMRC and SLC and Notice of Appointment in respect of specified functions under The Education (Student Loans) (Repayment) Regulations 2009, as amended, as made under section 22 and 42(6) of The Teaching and Higher Education Act 1998, The Repayment of Student Loans (Scotland) Regulations 2000 as made under sections 73 and 74 of The Education (Scotland) Act 1980 and Articles 3(2) and 8(4) of The Education (Student Support) MOU records the commitment of DIUS, HRMC and SLC to an effective system of student loan collection. The Notices of Appointment authorise SLC to carry out functions in relation to the collection of student loan repayments (both directly from the borrower and via HMRC) from both UK and overseas borrowers. MOU 20 May May 2013 (BIS) 25 November 2009 (Welsh Government) 17 September 2009 (DELNI) 22 September 2009 (Scottish Ministers) Each time new regulations are laid or, when necessary, amending regulations are laid. 9 As at 03 September

34 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal (Northern Ireland) Order 1998 and The Education (Student Loans) (Repayment) Regulations (Northern Ireland) Manage the Repayment of Mortgage Style Loans Required All Notice of Appointment in respect of specified functions under The Education (Student Loans) Act 1990 and The Education (Student Loans) Regulations 1998 and The Education (Student Loans) (Northern Ireland) Order 1990 and The Education (Student Loans) Regulations (Northern Ireland) Payment of Education Maintenance Allowances The Notices of Appointment authorise SLC to collect repayments from borrowers with Mortgage Style loans. 8 September 2009 (England) 24 August 2009 (Scottish Ministers) 17 September 2009 (DELNI) Each time new regulations are laid or, when necessary, amending regulations are laid. Welsh Government (A) Notice of Appointment in respect of specified functions under Sections 14, 15, 16 and 17 of the Education Act 2002 between the Welsh Ministers (Department for Education and Skills) and SLC. Authorises SLC to produce and deliver appropriate application packs and assess and pay EMAs to eligible students. (A) applies to functions carried out in respect of the academic year beginning on or after 1 September (A) 1 April August 2010 Yes (B) Service Agreement between the Welsh Ministers and SLC. (B) applies to functions carried out in respect of the academic year beginning on or after 1 September (B) 1 January August 2011 (C) Service Agreement between the Welsh Ministers and SLC. (C) applies to functions carried out in respect of the academic year beginning on or after 1 September (C) 1 April August As at 03 September

35 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required (D) Service Agreement between the Welsh Ministers and SLC. (D) applies to functions carried out in respect of the academic year beginning on or after 1 September (D) 1 March August 2013 DEL, Ireland Northern (E) Service Agreement between the Welsh Ministers and SLC. Service Agreement between the Department for Employment and Learning in Northern Ireland and SLC in relation to the scheme. (E) applies to functions carried out in respect of the academic year beginning on or after 1 September Authorises SLC to produce and deliver appropriate application packs and assess and pay EMAs to eligible students. (A) applies to functions carried out in respect of the academic year beginning on or after 1 September (E) 26 March March 2014 (A) 1 April August 2010 Yes (B) applies to functions carried out in respect of the academic year beginning on or after 1 September 2010 (B) 1 January August 2011 (C) applies to functions carried out in respect of the academic year beginning on or after 1 September (C) 1 April August 2012 (D) applies to functions carried out in respect of the academic year beginning on or after 1 September (D) 1 December August Payment of Assembly Learning Grant (Further Education) Welsh Government (A) Notice of Appointment in respect of specified functions under Sections 14, 15, 16 and 17 of the Education Act 2002 between Welsh Ministers (Department for Education and Skills) and SLC. Authorises SLC to produce and deliver appropriate application packs and assess and pay ALGs to eligible students. (A) applies to functions carried out in respect of the academic year beginning on or after 1 September (A) 1 April August 2010 Yes 11 As at 03 September

36 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required (B) Service Agreement between the Welsh Ministers and SLC. (C) Service Agreement between the Welsh Ministers and SLC. (D) Service Agreement between the Welsh Ministers and SLC. (B) applies to functions carried out in respect of the academic year beginning on or after 1 September (C) applies to functions carried out in respect of the academic year beginning on or after 1 September (D) applies to functions carried out in respect of the academic year beginning on or after 1 September (B) 1 January August 2011 (C) 1 April August 2012 (D) 1 March March 2013 (E) Service Agreement between the Welsh Ministers and SLC. 7. Administration of Graduate Endowment Scheme (E) applies to functions carried out in respect of the academic year beginning on or after 1 September (E) 26 March March 2014 Scottish Letter of Appointment from Ministers Scottish Ministers under The Graduate Endowment (Scotland) Regulations 2007 and Administering Tuition Fee Grants The appointment gives SLC authority to carry out functions in relation to the administration of loans to Scottish students in order to discharge their liability to pay the Graduate Endowment (payable prior to 1 April 2008). 24 August 2009 No BIS (A) Notice of Appointment in respect of functions under The Education (Student Support) (No. 2) Regulations 2008, as amended, as made under the provisions of section 23(4) of The Teaching and Higher Education Act (A) Authorises SLC to carry out functions in relation to the administration of grants for fees payable under Regulation 104 in respect of the academic year on or after 1 September (A) 8 December 2008 Each time new regulations are laid (usually annually) or, when necessary, amending regulations are laid. (B) Notice of Appointment in (B) Authorises SLC to carry out functions in (B) 1 September 12 As at 03 September

37 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required respect of functions under The Education (Student Support) Regulations 2009, as amended, as made under the provisions of section 23(4) of The Teaching and Higher Education Act relation to the administration of grants for fees payable under Regulation 105 in respect of an academic year beginning on or after 1 September 2010 but before the academic year beginning on or after 1 September Welsh Government (C) Notice of Appointment in respect of functions under The Education (Student Support) Regulations 2011 as made under the provisions of section 23(4) of The Teaching and Higher Education Act (A) Notice of Appointment in respect of specified functions under The Assembly Learning Grants and Loans (Higher Education) (Wales) (No. 2) Regulations 2008 as made under section 23(4) of The Teaching and Higher Education Act (B) Notice of Appointment in respect of specified functions under The Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2009, as amended, as made under section 23(4) of The Teaching and Higher Education Act (C) Authorises SLC to carry out functions in relation to the administration of grants for fees payable under Regulation 108 in respect of any academic year beginning on or after 1 September (A) Authorises SLC to carry out functions in relation to the administration of grants for fees payable under Regulation 55 in respect of the academic year beginning on or after 1 September (B) Authorises SLC to carry out functions in relation to the administration of grants for fees payable under Regulation 61 in respect of any academic year beginning on or after 1 September (C) 31 October 2011 (A) 16 February 2009 (B) 21 December As at 03 September

38 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required (C) Notice of Appointment in respect of specified functions under the Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2011, as amended, as made under section 23(4) of The Teaching and Higher Education Act C) Authorises SLC to carry out functions in relation to the administration of grants for fees payable under Regulation 64 in respect of the academic year beginning on or after 1 September (C) 17 February 2011 DEL, Ireland Northern (D) Notice of Appointment in respect of specified functions under the Assembly Learning Grants and Loans (Higher Education)(Wales)(No.2) Regulations 2011, as amended, as made under section 23(4) of The Teaching and Higher Education Act (A) Notice of Appointment in respect of functions under The Education (Student Support) Regulations (Northern Ireland) 2009, as amended, as made under Article 4(1) of The Education (Student Support) (Northern Ireland) Order (D) Authorises SLC to carry out functions in relation to the administration of grants for fees payable under Regulation 65 in respect of the academic year beginning on or after 1 September (A) Authorises SLC to carry out specified functions in relation to the administration of grants for fees payable under Regulation 97 in respect of the academic year beginning on or after 1 September (D) 21 March 2012 (A) 3 April 2009 Each time new regulations are laid (usually annually) or, when necessary, amending regulations are laid. (B) Notice of Appointment in respect of functions under The Education (Student Support) (No. 2) Regulations (B) Authorises SLC to carry out specified functions in relation to the administration of grants for fees payable under Regulation 97 in respect of any academic year beginning on or (B) 14 January As at 03 September

39 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal (Northern Ireland) 2009, as after 1 September amended, as made under Article 4(1) of The Education (Student Support) (Northern Ireland) Order Administration of Pathways to Apprenticeships Scheme Required Welsh Government Service Agreement between the Welsh Ministers and SLC. (A) Authorises SLC to carry out certain functions including producing and delivering application packs and paying funds to eligible students in respect of the academic year beginning on or after 1 September (A) 1 January August 2011 Yes (B) Authorises SLC to carry out certain functions including producing and delivering application packs and paying funds to eligible students in respect of the academic year beginning on or after 1 September (B) 1 April August 2012 (C) Authorises SLC to carry out certain functions including producing and delivering application packs and paying funds to eligible students in respect of the academic year beginning on or after 1 September (D) Authorises SLC to carry out certain functions including producing and delivering application packs and paying funds to eligible students in respect of the academic year beginning on or after 1 September (C) 1 March August 2013 (D) 26 March March Miscellaneous BIS Letter of Delegation made under section 23(4) of The Authorises SLC to undertake a recruitment exercise to identify suitable candidates to 22 December 2008 Each time a new Independent 15 As at 03 September

40 SLC Framework Document Annex A Administration Authority Details of Authority Date Renewal Required Department Education for Teaching and Higher Education Act 1998 in respect of functions under section 22 of that Act. (A) Notice of Appointment in respect of functions under The Education (Teacher Student Loans) (Repayment etc) Regulations 2002, as made under section 186(4) of The Education Act 2002 in respect of the Repayment of Teachers Loans Scheme. recommend to the Minister for appointment to the role of Independent Person to review appeals against decisions taken by Student Finance England. The Independent Person will also handled student finance complaints relating to SLC customer service, irrespective of customer domicile. (A) and (B) authorise SLC to carry out specified functions in respect of the Repayment of Teachers Loans Scheme. (A) 28 August 2002 (B) 29 June 2012 Person is required to be appointed (anticipated to be every 3 years). Each time new regulations are laid (usually annually) or, when necessary, amending regulations are laid. (B) Notice of Appointment in respect of functions under The Education (Teacher Student Loans) (Repayment etc) Regulations 2003, as made under section 186(4) of The Education Act 2002 in respect of the Repayment of Teacher Loans Scheme. 16 As at 03 September

41 SLC Framework Document Annex A Part B: Other Approved Activities Administration Authority Details of Authority Date Renewal Required 1. Payment of Bursaries for Higher Education Institutes Various English and NI HEIs HEBBS Agreement between HEI and SLC Delivery of a central scheme for delivering institutional bursaries. Various services carried out by SLC depending on which contract the institution signed up to. 1 February July 2012, and on a yearly basis thereafter automatically unless and until terminated. Continues annually until terminated by either party on giving 8 months prior notice. Various Welsh HEIs Welsh Bursary Scheme Agreement between HEI and SLC 2. Provision of Higher Education Management Information Service Delivery of a central scheme for delivering institutional bursaries. The central scheme being delivered would apply to students that started their studies prior to 2011/12 AY. Various services carried out by SLC depending on which contract the institution signed up to. For new joiners to the scheme in 2012, agreement shall continue until 31 July 2013 and on a yearly basis thereafter automatically until terminated. 1 February July 2012 and on a yearly basis thereafter automatically unless and until terminated. Continues annually until terminated by either party on giving 8 months prior notice. Various English and Welsh HEIs HE MI Services Agreement between HEI and SLC The provision of reports by SLC to the HEI containing statistical information regarding the HEI and Higher Education. Start date varies according to the HEI Continues annually until terminated by either party on giving 30 days notice. 17 As at 03 September

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45 SLC Framework Document Annex C Compliance with government-wide corporate guidance and instructions The SLC shall comply particularly with the following general guidance documents and instructions: this document and its associated annexes Governance and Accountability The Combined Code on Corporate Governance Public Bodies: A Guide for Departments, issued by the Cabinet Office Model Code for Staff of Executive Non-departmental Public Bodies (Cabinet Office) (annex A of chapter 5 of Public Bodies: A Guide for Departments) Cabinet Office Guidance on Codes of Practice for Board Members of Public Bodies ( The Parliamentary Ombudsman s Principles of Good Administration ml The Code of Practice of the Office of the Commissioner on Public Appointments ( Management and Financial Managing Public Money (MPM), issued by the Treasury treasury.gov.uk/psr_mpm_index.htm Appropriate adaptations of sections of Corporate Governance in Central Government Departments: Code of Good Practice Fees and Charges Guide, Chapter 6 of MPM Departmental Banking: A Manual for Government Departments, annex 5.7 of MPM Government Financial Reporting Manual (FReM) Consolidated Budgeting Guidance, issued annually by the Treasury Government Internal Audit Standards Management of Risk: Principles and Concepts BCDC-D4B A7707D2521F.pdf Managing the Risk of Fraud Regularity, Propriety and Value for Money 45

46 SLC Framework Document Annex C Procurement Policy Guidelines 006_regulations_.asp Annual Civil Service Pay Guidance (HM Treasury) relevant Dear Accounting Officer letters Consolidation Officer Memorandum, and relevant DCO letters other relevant guidance and instructions issued by the Treasury in respect of Whole of Government Accounts Information handling relevant Freedom of Information Act guidance and instructions (Ministry of Justice) relevant guidance and instructions on Information Security (Cabinet Office) General other relevant instructions and guidance issued by the central Departments specific instructions and guidance issued by the Sponsor Department recommendations made by the Public Accounts Committee, or by other Parliamentary authority, that have been accepted by the Government and relevant to the SLC 46

47 SLC Framework Document Annex D Code of Best Practice for Members of the Board of the Student Loans Company Background 1. At its meeting in September 1994, the Board of the Student Loans Company Ltd (SLC) agreed to adopt the Code of Best Practice for Members of the Board of the Student Loans Company. This was based upon a model code issued by the Treasury in response to the Cadbury Report and a series of Public Accounts Committee reports. 2. The Treasury issued a revised model code in February 1997, largely to reflect the Nolan Committee's recommendations in its first report, 'Standards in Public Life'. This was subsequently updated in October In April 1997, the Board adopted a revised model code. The Code of Best Practice was modified to take account of the SLC s characteristics and approved by the then Department for Education and Employment (now the Department of Business, Innovation and Skills (BIS)) the SLC s sponsor Department. The Code of Best Practice was further revised in November 1999, and at Main Board meetings held on 26 th September 2002, 14 th December, 2004, 30 th July 2008 and [30 th June 2009]. Code of Best Practice for Members of the Board of the Student Loans Company 4. This document sets out a Code of Best Practice for Board members of the Student Loans Company Ltd (SLC). The SLC is a private limited company, incorporated under the Companies Act, and is also a Non Departmental Public Body. This Code of Best Practice for Members of the Board should be considered alongside the Framework Document, which sets out the broad framework within which the SLC will operate. For ease of reference, relevant sections of the Framework Document have been set out in this Code of Best Practice for Members of the Board. Public Service Values 5. Acting in accordance with the seven principles of public life as set out by the Committee on Standards in Public Life (the Nolan Committee) at Appendix A; the Board must at all times: a. Observe the highest standards of impartiality, integrity and objectivity in relation to stewardship of public funds and management of the SLC. b. Comply fully with the principles of openness, and comply with all reasonable requests for information from Parliament, users of services and individual citizens. c. Be accountable to Parliament, users of services, individual citizens and staff for the activities of the SLC, its stewardship of public funds and the extent to which key performance targets and objectives have been met. d. Maximise value for money through ensuring that services are delivered in the most economic, efficient and effective way, within available resources, and with independent validation of performance wherever practicable. 47 1

48 SLC Framework Document Annex D Relationship with the Sponsor Department 6. The Secretary of State for Business, Innovation and Skills (the Responsible Minister) is answerable to Parliament for the policies and performance of all public bodies sponsored by BIS, including their use of resources and the policy framework within which they operate. The respective roles of BIS and the Devolved Administrations (the Departments) and the SLC are set out in the Framework Document. BIS acts as lead sponsor and acts, in defined circumstances, on behalf of all the Departments. Role of the Chair 7. The Chair of the Board ( the Chair ) is answerable to the Responsible Minister. Communications between the Board and the Departments should normally be through the Chair. He or she should ensure that the SLC s policies and actions support the Departments wider strategic policies and that its affairs are conducted with probity. Where appropriate, the Chair will support the Chief Executive in ensuring that the Departments policies, and how the SLC will support them, are clearly communicated and disseminated throughout the SLC. 8. In addition, the Chair has the following leadership responsibilities: overseeing the formulation of the SLC s Delivery Strategy, setting out how the SLC will deliver the Departments policy and delivery objectives and the services they have agreed that the SLC may provide for other stakeholders, and submitting this for approval by the Responsible Minister; ensuring that the Board, in reaching decisions, takes proper account of guidance provided by the Responsible Minister or the Departments; promoting the efficient and effective use of staff and other resources; delivering high standards of regularity and propriety; representing the views of the Board to the general public. 9. The Chair also has an obligation to ensure that: the work of the Board and its members is reviewed, that the Board is working effectively and that a report is produced annually for the Departments on the effectiveness of the Board in fulfilling its responsibilities; the Board has a balance of skills appropriate to directing the SLC s business; Board vacancies are anticipated and he or she advises the Responsible Minister of the SLC s needs in good time and that he or she takes an active part in appointing suitable Non-Executive Directors in conjunction with the Responsible Minister (paragraph 4.2 of the Framework Document refers); the Board Members are fully briefed on terms of appointment, duties, rights and responsibilities of a board member of a public sector company and are fully briefed on the SLC s operating context; he or she, together with the other Board Members, receives appropriate training on financial management and reporting requirements and on any differences that may exist between private and public sector practice; 48 2

49 SLC Framework Document Annex D he or she assesses the performance of individual SLC Non-Executive Directors annually and when they are being considered for re-appointment and submits a report to the Responsible Minister; he or she assesses the performance of the Chief Executive annually and makes recommendations to the Responsible Minister on remuneration increases; he or she also assists the Chief Executive in assessing the performance of the members of the Executive Management Team; there is a code of practice in place for the Board Members (i.e. this document) consistent with the Cabinet Office guidance on Codes of Practice for Board Members of Public Bodies. Responsibilities of Board Members 10. The Board should ensure that effective corporate governance arrangements are in place that set out how the SLC is directed and controlled and provide assurance on risk management and internal control. The Board should demonstrate high standards of corporate governance at all times and ensure that best practice is followed consistent with the Combined Code on Corporate Governance and appropriate adaptations of Corporate Governance in Central Government Departments Code of Good Practice. 11. The Board is specifically responsible for: overseeing the development and implementation of the Delivery Strategy of the SLC ensuring it is consistent with the overall strategic direction and the policy and resources framework determined by the Departments, and that the Delivery Strategy is underpinned by supporting strategies and robust delivery plans; ensuring that it receives and evaluates regular and timely information about the SLC s performance against its aims, objectives, performance targets and plans, ensuring appropriate action is in hand to address any areas of underperformance; ensuring that the Departments are kept informed of any changes which are likely to affect the strategic direction of the SLC or on the attainability of its targets, and determining the steps needed to deal with such changes; ensuring that any statutory or administrative requirements for the use of public funds are complied with; that the Board operates in accordance with company law and within the limits of any delegated statutory authority as set out in the Register (at Annex A of the Framework Document) as amended from time to time, and in accordance with any other conditions relating to the use of public funds; and that, in reaching decisions, the Board takes into account guidance issued by the Departments and ensures it receives adequate information regarding the stewardship of funds disbursed by the SLC on behalf of the Departments; assuring itself of the effectiveness of the internal control and risk management systems and that they are actively monitored and regularly reviewed; setting up an Audit Committee, as set out in paragraph of the Framework Document, chaired by an independent non-executive member to provide independent advice; ensuring that the Board receives and reviews regular information concerning the management of the SLC; is informed in a timely manner about any concerns about the activities of the SLC; and provides positive assurance to the Departments that appropriate action has been taken on such concerns; 49 3

50 SLC Framework Document Annex D ensuring that the SLC s responsibilities towards its staff, as set out in section 19 of the Framework Document, are satisfactorily discharged; appointing, with the Responsible Minister s approval, a Chief Executive and, in consultation with the Departments, setting his or her performance objectives which are aligned with the SLC Delivery Strategy, performance targets and Annual Business Plans and the specific responsibilities of the Chief Executive as set out in the Framework Document, ensuring that remuneration terms are linked to these objectives and give due weight to the proper management and use of public resources; setting up a Remuneration Committee which will approve the objectives, performance measures and remuneration terms for the Executive Management Team and senior staff ensuring these are aligned with the agreed Delivery Strategy, performance targets and Annual Business Plans; appointing an Executive Management Team to conduct the day to day business of the SLC, ensuring an appropriate balance of skills and experience. Responsibilities of Individual Board Members 12. Individual Board members should: act in good faith and in the best interests of the SLC in fulfilling its strategic purpose; comply with the requirements of company law setting out the responsibilities of directors of companies; comply with the SLC Board Members Code of Practice (i.e. this document) and with the rules set out in relevant Government guidance as referred to in Annex C of the Framework Document relating to the use of public funds and to conflicts of interest; do their utmost to ensure compliance with the best practice requirements relating to NDPB governance, while recognising that statutory requirements under the Companies Acts and company law more generally take precedence; not misuse information gained in the course of their public service for personal gain or for political profit, nor seek to use the opportunity of public service to promote their private interests or those of connected persons or organisations; comply with the Board s rules on the acceptance of gifts and hospitality, and on business interests; provide effective challenge and support to the Executive Management Team to ensure the Board s responsibilities under paragraphs 7.2 and 7.3 of the Framework Document are properly discharged; ensure that that the SLC adheres to all relevant legislation and strategic boundaries as set by the Departments. 13. Communications between the board and the Minister of the sponsor department will normally be through the Chair (see paragraph 7 above). Nevertheless, an individual Board member has the right of access to Ministers on any matter which he or she believes raises important issues relating to his or her duties as a member of the Board. In such cases the agreement of the rest of the Board should normally be sought. 14. In addition, Board members are expected not to occupy paid party political posts or hold particularly sensitive or high profile unpaid roles in a political party. However, part-time members are free to engage in political activities, provided that they are conscious of their general public responsibilities 50 4

51 SLC Framework Document Annex D and exercise a proper discretion, particularly in regard to the work of the SLC. On matters directly affecting that work, they should not make political speeches or engage in other political activities. Full-time Board members should abstain from all controversial political activities. However, these restrictions do not apply to local Councillors or to peers in relation to their conduct in the House of Lords. 15. The Board has indicated its wish to comply, so far as possible with guidance issued by the Turnbull Committee relating to compliance with the Combined Code on Corporate Governance, notwithstanding that this guidance is addressed primarily to listed companies. Details of the recommendations of the Turnbull Committee will be provided to Board Members as required. 16. Although any legal proceedings initiated by a third party are likely to be brought against the SLC, in exceptional cases proceedings (civil or criminal) may be brought against the Chairman or other individual Board members. For example, a Board member may be personally liable if he or she makes a fraudulent or negligent statement which results in loss to a third party. Board members who misuse information gained by virtue of their position may be liable for breach of confidence under common law or may commit a criminal offence under insider dealing legislation. 17. In the event of any claim being made personally upon a Director which arises from the execution of their duty as a member of the Board of the Student Loans Company, that Director shall be indemnified in accordance with annex 5.5 of Managing Public Money published by HM Treasury, as varied from time to time. Professional Advice 18. Board members may wish to seek legal or other independent professional advice in the furtherance of their duties. Normally they should consult the SLC's legal advisers. However, if they consider it necessary to take independent advice, they will be entitled to do so at the SLC's expense on condition that the Chairman or Chief Executive is consulted beforehand, and subject to a limit of 500 in any one instance. Expenditure in excess of this sum may only be incurred with the prior approval of the Board. Declaration of Interests 19. Board members should declare any personal or business interests which may conflict with their responsibilities. Guidance on the acceptance of gifts, hospitality and awards is given at Appendix B. Guidance on declaring and registering interests is at Appendix C. Delegation 20. With the exception of the Chief Executive, Board members serve on a part-time basis. Responsibility for day-to-day matters is delegated to staff so far as is practicable, within a clearly understood framework of control. The Board will from time to time be expected to consider those matters that are reserved for decision by the Board and those that are delegated to Executive Management. 21. The Board may also decide to delegate, where it has power to do so, responsibility for specified matters to individual Board members or committees of the SLC. Strategic Planning and Control 22. The Board is responsible for overseeing the production of a Delivery Strategy and Annual Business Plan, in accordance with section 15 of the Framework Document. 51 5

52 SLC Framework Document Annex D Openness and Responsiveness 23. Board members and the Executive should conduct all their dealings with the public in an open and responsible way. They should take account of the Standard of Best Practice for Openness in Executive NDPBs and NHS bodies in the 'First Report of the Committee on Standards in Public Life' (Cm 2850-I). 24. Board members are responsible for providing Parliament (including its Select Committees) and the public with as full information as may be reasonably requested concerning their policy decisions and actions. They should be able to demonstrate that they are using resources to good effect, with probity, and without grounds for criticism that public funds are being used for private, partisan or party political purposes. Board members and SLC staff should conduct all their dealings with the public in an open and responsible way. Accountability for Public Funds 25. Board members have a duty to ensure that public funds which for this purpose include all forms of receipts from fees, charges and other sources are properly safeguarded. They must ensure that at all times the SLC 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. 26. Board members are responsible for ensuring that the SLC does not exceed its powers or functions, which may be defined in statute or otherwise, or through limitations on its authority to incur expenditure. Members are normally advised on these matters by the Chief Executive and the SLC's legal advisers. Annual Report and Accounts 27. As part of its responsibilities for the stewardship of public funds, the Board should ensure that a full statement of the use of such resources is included in the annual report and accounts. As set out in the Framework Document, the accounts must comply with any requirements under the Companies Act and comply with the Government Financial Reporting Manual (FReM), as appropriate. The Role of the Accounting Officer 28. The chief executive of the SLC ( the Chief Executive ) as Accounting Officer is personally responsible for: safeguarding the public funds and any assets for which he or she has charge; stewardship of funds administered by the SLC on behalf of Departments (as set out in section 13 of the Framework Document); ensuring propriety and regularity in the handling of those public funds; and the day-to-day operations and management of the SLC. 29. In addition, he or she should ensure that the SLC as a whole complies with best practice in public sector standards, in terms of governance, decision-making and financial management that are set out in Managing Public Money, as amended from time to time. 30. The Chief Executive is responsible to the Board for: 52 6

53 SLC Framework Document Annex D Audit advising the Board on the discharge of the SLC s responsibilities as set out in this document, and related guidance referred to in Annex C of the Framework Document and in any other relevant instructions and guidance that may be issued from time to time; advising the Board on the SLC s performance against its aims, objectives, performance targets and plans; ensuring that financial considerations are taken fully into account by the Board at all stages in reaching and executing its decisions, and that appropriate financial, investment and project appraisal techniques are followed; taking action as set out in paragraph of Managing Public Money if the Board, or its Chair, is contemplating a course of action involving a transaction which the Chief Executive considers would infringe the requirements of propriety or regularity, or does not represent prudent, economical, efficient or effective administration, or is of questionable feasibility, or is unethical; providing clear and timely information to the Board on the emergence of risks and proposed mitigations. 31. The terms of reference and current membership of the SLC's Audit Committee are attached at Appendix D. The SLC as Employer 32. The Board should ensure that: a. The SLC complies with all relevant legislation, and that it employs suitably qualified staff who will discharge their responsibilities in accordance with the high standards expected of staff employed by public bodies. All staff should be familiar with the SLC's main aims and objectives. b. The SLC adopts management practices which use resources in the most efficient and economical manner. c. The SLC's rules for recruiting and managing staff provide for appointment and advancement on merit, on the basis of equal opportunity for all applicants and staff. In filling senior staff appointments, the Board should satisfy itself that an adequate field of qualified candidates is considered, and should always consider the merits of full open competition, which should normally be used for recruitment of external candidates. d. The SLC's Board and its staff have access to expert advice and suitable training opportunities to enable them to exercise their responsibilities effectively. 33. In addition, the Board s broad responsibilities toward its staff are to ensure that: the rules for recruitment and management of staff create an inclusive culture in which diversity is fully valued; appointment and advancement is based on merit: there is no discrimination on grounds of gender, marital status, sexual orientation, race, colour, ethnic or national origin, religion, disability, community background or age; the level and structure of its staffing, including grading and staff numbers, are appropriate to its functions and the requirements of economy, efficiency and effectiveness; individual performance objectives and pay and incentives are aligned with the SLC s Delivery Strategy and Annual Business Plans; 53 7

54 SLC Framework Document Annex D the performance of its staff at all levels is appraised and the SLC s performance measurement systems are reviewed from time to time; its staff are encouraged to acquire the appropriate professional, management and other expertise necessary to achieve the SLC s objectives; proper consultation with staff takes place on issues affecting them; adequate grievance and disciplinary procedures are in place; whistle-blowing procedures consistent with the Public Interest Disclosure Act are in place; a code of conduct for staff is in place based on the Cabinet Office s Model Code for Staff of Executive Non-departmental Public Bodies (set out in Annex A of chapter 5 of Public Bodies: A Guide for Departments). 34. The Board will adopt a code of conduct for its staff in line with any relevant good practice guidance issued for executive NDPBs, subject to any modifications that may be necessary - and that are agreed with the BIS - to take account of the SLC's own particular characteristics and circumstances. This will cover arrangements to enable staff to raise concerns about propriety with a nominated SLC official in the first instance and subsequently, if necessary, with a nominated BIS official. 35. The Board has a responsibility to monitor the performance of the Chief Executive and other senior staff. Where the terms and conditions of Skills of the Chief Executive and other senior members of staff include an entitlement to be considered for performance-related pay, and where such payments are assessed by Board members, the Board should ensure that it has access to the information and advice required to make the necessary judgements. 54 8

55 SLC Framework Document Annex D Appendix A The Seven Principles of Public Life Outlined in 'Spending Public Money: Governance and Audit Issues', (Cm 3179), March 1996 The following seven principles of public life were set out by the Committee on Standards in Public Life (the Nolan Committee) for the benefit of all who serve the public. Selflessness Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family, or their friends. Integrity Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties. Objectivity In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit. Accountability Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office. Openness Holders of public office should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands. Honesty Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest. Leadership Holders of public office should promote and support these principles by leadership and example. 55 9

56 SLC Framework Document Annex D Appendix B Acceptance of Gifts, Hospitality and Awards 1. The SLC is responsible for allocating significant sums of public money. 2. It is imperative that Board members should maintain high standards of propriety and professionalism if they are offered gifts, hospitality or awards. 3. Some Board members may spend time with representatives of institutions and other organisations where it is normal business practice or social convention to offer gifts, hospitality or awards. Offers of this kind can place members in a difficult position since to refuse may cause misunderstanding or offence; but to accept may give rise to questions of impropriety or conflict of interest, or to criminal liability. 4. Board members may not accept any benefit as an inducement or reward: a. For taking any action (or specifically not taking action) in his or her official capacity as a Board member. b. For showing favour (or disfavour) to anyone in his or her official capacity as a Board member. 5. The guiding principles are: Gifts a. The conduct of individuals must not create suspicion of any conflict between their official duty and their private interest. b. The actions of individuals in their official capacity must not give the impression (to any member of the public, to any organisation with whom they deal or to their colleagues) that they have been (or may have been) influenced by a benefit to show favour or disfavour to any person or organisation. 6. Gifts other than of token value should generally be refused. 7. If members have any doubts about whether a gift should be refused (it is accepted, for example, that refusal of a gift may cause offence), they should consult the Company Secretary who at his discretion may discuss the matter with the Chairman. 8. If the Company Secretary considers that a gift cannot be used to support the SLC's business, he may authorise retention of the gift by the individual. Alternatively, if the individual does not wish to retain the gift, arrangements may be made for the gift to be stored until disposal, for example through a local charity. 9. Board members should record any gifts accepted in the central register held by the Company Secretary. Any Board member with a query about the contents of the register should direct it to the Company Secretary. Hospitality 10. It is accepted that Board members may receive hospitality from the head or senior members of an institution; that they may attend as part of their official function an event organised by another body for promotional or influential purpose; that they are sometimes offered a nominal fee for presenting a paper or speech at a conference; and may receive the occasional invitation to a cultural event. 11. Offers of hospitality that exceed the normal (that is, occasional lunches or dinners while visiting an institution) should in general be refused. The following items should be avoided: a. Hospitality offered instead of fees for broadcasts, speeches, lectures or other work done

57 SLC Framework Document Annex D b. Inducements which could lead to a contractual relationship between the SLC and a supplier or consultant. c. Substantial offers of social functions, travel or accommodation. d. Frequent acceptance of meals, tickets and invitations to sporting, cultural or social events, particularly from the same source. 12. If Board members have any doubt about whether to accept hospitality they should refer the matter to the Company Secretary, who in turn may discuss it with the Chairman. 13. If, exceptionally, the Company Secretary agrees that the circumstances justify the normal level of hospitality being exceeded, this will be recorded in the central register. 14. Board Members will not normally provide either gifts or hospitality either to staff or third parties but where this may need to occur, the prior agreement of the Chairman will be obtained and if agreement is given, this will be informed by the principles of the Policy for the Provision of Gifts and Hospitality to Employees and Third Parties. Where the Chairman hosts the occasional lunch or dinner for one or more non-executive directors and/or officials solely for business purposes, such as the pre-board dinners that are scheduled twice a year, the location and nature of hospitality shall be reasonable and appropriate to the circumstances of the event. Provision of hospitality by the Chairman to third parties shall be informed by the principles of the Policy for the Provision of Gifts and Hospitality to Employees and Third Parties and shall be subject to the prior agreement of the senior independent director. Awards and Prizes 15. Board members should consult the Company Secretary if they are approached by an outside organisation offering an award or prize which could in any way be seen to be connected with their role as Board members. Retention of the award or prize will normally be allowed, provided that: a. It is offered in recognition of personal achievement. b. It is not a gift (see above). 16. In deciding whether the award would give rise to public criticism that it was in fact a gift, members are advised to consider: a. The status of the awarding body - for example, whether it is a registered charity. b. The regularity of the awards made by the body. c. The range of people to whom the awards are given. d. The method of selection. e. The standing of the selectors. f. Any SLC dealings with the awarding body. Criticism, however unfounded, might be made if it appears that the award is given with a view to future benefit to the body concerned

58 SLC Framework Document Annex D Appendix C Declaration of Interests and Register of Interests 1. The Code of Best Practice requires that the Chairman and other Board members should declare any personal or business interests which may conflict with their responsibilities as Board members. Declaration of Interests 2. Any Board member who has, in any way, an interest either directly or through a partner, spouse or close relative, in matters likely to be considered by the Board should declare that interest. Such declarations should describe the nature and extent of the interest clearly and state whether it carries direct or indirect financial benefits. This requirement also applies to members of senior management. Such declaration should be made before the SLC enters into the transaction or arrangement in respect of which the interest is to be declared. 3. Relevant interests in this context are as follows: a. Executive and non-executive directorships of, significant shareholdings in, or employment by, public or private companies likely or possibly seeking to do business with the SLC or with any of the institutions it funds. b. Ownership or part-ownership of, or employment by, businesses or consultancies likely or possibly seeking to do business with the SLC or with any of the institutions it funds. c. Remunerated or honorary positions and other connections with HE or FE institutions which may give rise to a conflict of interest. Register of Interests 4. The code requires that a formal register of interests is established. The register should be made available to the public, on request, at 100 Bothwell Street. The existence and availability of the register should be noted in the annual report. 5. The register should include details of all directorships and other relevant interests declared by both Board members and members of senior management, as defined in paragraph 3 above. 6. The register should be kept up to date through an annual survey of members' interests. Conduct in Meetings 7. Any Board member who has a clear and substantial interest in a matter under consideration by the Board should declare that interest at any meeting where the matter is to be discussed, whether or not that interest is already recorded in the Register. At the discretion of the Chairman, the member concerned should withdraw from the meeting during the relevant discussion or decision. Membership of Committees 8. Board members should not accept positions on the SLC s committees or working groups where a conflict of interest is likely to arise

59 SLC Framework Document Annex D Appendix D Audit Committee Terms of Reference The Board has established an Audit Committee as a Committee of the Board to support them in their responsibilities for issues of risk, control and governance and associated assurance. Membership: The following Non-Executive Directors of the Board are members of the Audit Committee: Ian Dickson, Chair Christian Torkington David Edelman The Non-Executive Directors are independent of management and free of any business or other relationships which could interfere with the exercise of their independent judgement. Access: The Senior Internal Audit Manager and the representative of External Audit will have free and confidential access to the Chair of the Audit Committee. Reporting: The Chair of the Audit Committee will formally report back to the Board after each meeting, and will provide the Board with an Annual Report, timed to support the finalisation of the accounts and the Accounting Officer s Statement on Internal Control, summarising the conclusions of the Audit Committee from the work it has done during the year. Responsibilities: The Audit Committee will advise the Accounting Officer and Board on: the strategic processes for risk, control and governance and the Statement on Internal Control, including the supporting assurance framework; the accounting policies, the accounts, and the annual report of the Company, including the process for review of the accounts prior to submission for audit, levels of error identified, and the Board s letter of representation to the External Auditors; the planned activity and results of both internal and external audit; the adequacy of management responses to issues identified by audit activity, including external audit s management letter; assurances relating to the Company s corporate governance requirements (e.g. compliance with the Financial Memorandum, Government Accounting, etc); proposals for procuring internal computer audit services and external audit services (if appropriate), or for the purchase of non-audit services from firms who provide audit services; the External Auditor s remuneration, in conjunction with the Finance Director; fraud management policies and practices and whistle-blowing processes. fraud monitoring and investigation activities within the Company, by way of an Annual Fraud Overview report that will be prepared by management. The Audit Committee will also periodically review its own effectiveness and report the results of that review to the Board. Meetings: The Audit Committee will meet at least four times a year. The Chair of the Audit Committee may convene additional meetings, as they deem necessary

60 SLC Framework Document Annex D Agendas and supporting papers will be issued to all Committee members and attendees in advance of each meeting, as far as possible following the format standards applied to Board papers. A minimum of two members of the Audit Committee will be present for the meeting to be deemed quorate. Attendance records will be published each year in the Annual Report. Audit Committee meetings will normally be attended by the Accounting Officer, the Finance Director, the Head of Finance, the Company Secretary, the Senior Internal Audit Manager, a representative of External Audit and Assessors attending on behalf of the shareholders. The Audit Committee may ask any other officials of the Company to attend to assist it with its discussions on any particular matter, and may also ask any or all of those who normally attend but who are not members to withdraw to facilitate open and frank discussion of particular matters. It is expected that this will include a private meeting with the representative of External Audit at least once a year. The Board may ask the Audit Committee to convene further meetings to discuss particular issues on which they want the Committee s advice. Information requirements: For each meeting the Audit Committee will be provided with: a report summarising the Company s strategic and corporate risk register; a progress report from the Senior Internal Audit Manager summarising: work performed against work planned; executive summaries of finalised internal audit reports, together with key issues emerging from internal audit work; management responses to internal audit recommendations; progress made by management in implementing agreed internal audit recommendations; any changes to the periodic internal audit plan; any resourcing issues affecting the delivery of internal audit objectives. a progress report from the External Audit representative summarising work done and emerging findings, where appropriate; a summary report from the Legal & Compliance Manager highlighting any relevant legal matters. As and when appropriate, the Audit Committee will also be provided with: the strategic and periodic internal audit plan; the Senior Internal Audit Manager s annual opinion and report; quality assurance reports on the internal audit function; the draft annual report and accounts; the draft Statement on Internal Control and supporting documents, including the assurance framework; any changes to accounting policies; External Audit s strategy document; External Audit s half year review report; External Audit s review of the domicile split for the loan books of the funding authorities; 60 14

61 SLC Framework Document Annex D External Audit s highlights report and management letter; External Audit s draft letter of representation; External Audit s report summarising its review of Key Performance Indicators; reports on any proposals for procuring audit functions; any other management reports on material control issues and risks, as required

62 SLC Framework Document Annex E LIST OF DELEGATED FINANCIAL AUTHORITIES Capital single project or acquisition Single grant or Loan to third party 50,000 Special payments see point 2 Gifts see point 3 Disposal of Surplus Equipment see point 4 20% of own Capital Resource budget Limits that the Secretary of State has specified to the Student Loans Company to 1. write-off losses, 2. make or sanction special payments and 3. give gifts Note: Unless agreed by the Departments and, as necessary, HM Treasury, in addition to any requirements set out in this annex the SLC shall also follow the principles, rules, guidance and advice in Managing Public Money and other government-wide guidance and instructions (as set out in Annex C of the Framework Document), referring any difficulties or potential bids for exceptions to the Sponsor Department in the first instance. The SLC shall also seek prior written approval from the Sponsor Department on individual cases which exceed the limits stated in this Annex. The Company shall maintain a record of all losses written off and special payments made, including details of the circumstances of the event and stating the action taken to prevent an occurrence (section of Annex E(i) confirms loan write-off reporting requirements). All losses sustained or special payments made shall be suitably recorded in the statement of accounts for each financial year and shall be made available to Departments on request. A record of gifts should also be kept. In all cases of fraud or suspected fraud, the Sponsor Department must be immediately notified, the case investigated, and a full report made to the Company s Accounting Officer and Sponsor Department. The Sponsor Department reserves the right to amend this annex in writing at any time. 1. Losses and Write-Offs Write-off limits are separated into the following two categories; 1.a. write-offs of ringfenced funding made available by Departments for onward payments to customers ( Grant ), (comprising Loan balance write-offs, Administrative Customer Transaction write-offs and Fraud Customer Transaction write-offs); The circumstances under which the SLC can write off payments made to customers on behalf of Departments are confirmed at Annex E(i) which will form part of the SLC s Accounting Policies and Procedures Manual (APPM). 1 62

63 SLC Framework Document Annex E 1.b. write-offs of losses against the SLC s running costs ( Grant-in-Aid ); The Chief Executive shall have the personal authority to write off losses against the SLC s running costs, up to a limit of 1,000 for an individual claim, within a total ceiling for write-offs in any one financial year of 10,000 as per the table below. The table groups losses into categories to help decide how individual cases should be handled; Type A i ii iii iv Description Losses cash losses: physical losses of cash and its equivalents (e.g. bank notes, credit cards, electronic transfers, payable orders) Bookkeeping losses - because of unvouched or incompletely vouched payments, including cases where vouchers are missing; Exchange Rate Fluctuations. Losses due to fluctuations in exchange rates or revaluations of currencies. Losses of pay, allowances and superannuation benefits paid to employees of non-departmental public bodies: overpayments due to miscalculation, misinterpretation, or missing information; unauthorised issues e.g. inadmissible payments B i ii C Losses of accountable stores: proven or suspected fraud, theft, arson or sabotage, or any other deliberate act (including repairable damage caused maliciously to buildings, stores, etc. even where a legal claim is not possible) losses arising from other causes. Fruitless payments and constructive losses 2. Special Payments The Chief Executive shall also have the personal authority to make special payments up to a limit of 5,000 for each case, within a total limit of 50,000 in any one financial year as follows; a. Extra-contractual payments which, although not legally due under a contract, appear to be obligations which the courts might uphold; b. Ex gratia payments which, although not legally due under a contract, are payments reasonably expected under a contract and without which personal hardship would result; c. Ex gratia payments made to avoid personal hardship which might otherwise result from official failure and inadequacy. 2 63

64 SLC Framework Document Annex E 3. Gifts The Student Loans Company should have a policy, aligned with best practice in the public sector, on the acceptance of gifts, hospitality, awards, prizes or any other benefit which might be seen to compromise their personal judgement or integrity and ensure that all staff are made aware of this. Where such benefits have been received they should be recorded in a register detailing occasions, the nature of the benefit and the donor, in case of later complaint. 4. Disposal of Surplus Equipment The Student Loans Company may agree to give assets bought for a proper purpose but which are no longer needed for the conduct of its business to a registered charity, provided that no member or senior employee of the Student Loans Company has any interest in or connection with the charity and provided that neither the written down value nor the market value of the asset exceeds

65 SLC Framework Document Annex E Annex E(i) 3.3 Write-off and losses policies and practices Note: numbering corresponds to the relevant chapter of the SLC s Accounting Policies and Procedures Manual (APPM) Introduction The Company is acting as an agent in its role in issuing and recovering student financial support and the impacts of all the associated transactions are reflected in the books and records of the relevant funding bodies. As a result, all write-offs will be funded from the loan and grant Programme budgets held by the relevant funding bodies. The reporting requirements defined within Managing Public Money also lie with the relevant funding bodies although the Company must naturally be the source of such information (see section 3.3.8) Definitions Write-off categories The circumstances which lead to write-offs being required are classified into the following broad groups: a. Regulatory write-offs (where the customer s liability to repay is cancelled under the terms of the relevant Regulations), see section 3.3.3; b. Discretionary write-off due to irrecoverability of debt from customer (in these cases the loans are not cancelled and the borrowers remain liable to repay), see section 3.3.4; c. Administrative Customer Transaction write-off due to error in initial application or payment process (in which case the customer s liability to repay is cancelled), see section 3.3.5; d. Fraud Customer Transaction write-offs, where payments recorded on customer accounts have not been received by the actual customer as a result of a fraud perpetrated by another party (in which case the customer s liability to repay is cancelled), see section Loan Balance Write-offs The term Loan balance write-off applies to Regulatory and Discretionary write-offs, and is defined as the removal of an outstanding loan from the portfolio administered by the Company by virtue of the fact that the Company can or will no longer seek recovery of the amount due in the light of circumstances concerning the Company s ability to recover the debt. This category is not covered by any of the specific terms of losses or write-offs defined within Managing Public Money. Cash Loss and Overpayment Write-offs The terms Cash loss write-off and Overpayment write-off apply to Administrative and Fraud write-offs. 4 65

66 SLC Framework Document Annex E Cash loss write-off is defined as the removal of a payment transaction for any student support product from a customer record as a result of physical loss of cash due to the funds not being paid to the correct customer bank account because of administrative error or fraud. Such items are considered to be of loss type A i as defined within Managing Public Money box A.4.10a Overpayment write-off is defined as the subsequent removal of any element of the repayment due amount in respect of the original overpayment of any grant based student support product due to miscalculation, misinterpretation or missing information. As we initially claim to recover any such overpayments, such items are also considered to be of loss type A i per clause A of Managing Public Money. Authority and amendment to write-off policy The company has authority to make Regulatory write-offs in accordance with the relevant regulations The authority to make Discretionary, Administrative and Fraud write-offs is provided through the funding bodies approval of this policy as included in Annex E of the Framework Document. DIUS, as the designated Sponsor Department, reserve the right to amend this policy without notice (including any retrospective amendments that are deemed necessary), except in the case of a potential sale of loans to a third party, in which case the write-off policy should be fixed before any loan sale (and remain fixed for sold loans unless they receive approval from the purchaser and only change for unsold loans in a manner that does make a 'material difference' between sold and unsold loans). Any such amendments shall be notified to the Company in writing. 5 66

67 SLC Framework Document Annex E Regulatory write-off Separate, as detailed below, specify the terms under which loan balances can be written off depending upon whether they were granted under the 1990 Act for Mortgage Style (MS) loans or the 1998 Act for Income Contingent (ICR) loans. These loans are cancelled and the borrowers are no longer liable to repay. Mortgage Style loan Regulatory write-offs The Company has authority to write-off a loan balance granted under the 1990 Act for mortgage style loans in whole or in part from the books of account if the borrower: a) Dies; b) is not in arrears and (i) was under the age of 40 when his last agreement for a student loan was made and he reaches the age of 50 or when the last agreement for a student loan has been outstanding for not less than 25 years, whichever is the sooner; or (ii) was aged 40 or older when his last agreement for a student loan was made and he reaches the age of 60; c) satisfies the lender he is in receipt of a disability related benefit and by reason of disability is permanently unfit for work. Income Contingent loan Regulatory write-offs The Company has authority to write-off a loan balance granted under the 1998 Act for ICR style loans in whole or in part from the books of account upon: a) death of the borrower; b) For loans issued by England, Northern Ireland and Wales i) the borrower reaching the age of 65 providing the account is not in arrears for loans taken out between 1998 and 2006; or ii) the loan not being repaid 25 years from the first April after withdrawal or graduation for loans taken out after 2006; For loans issued by Scotland i) the borrower reaching the age of 65 providing the account is not in arrears for loans taken out between academic years beginning between 1998 and 2006; or ii) the loan not being repaid 35 years from the first April after withdrawal or graduation for loans taken out for academic years after 2006; c) the borrower satisfying the lender he is in receipt of a disability related benefit and by reason of disability is permanently unfit for work. 6 67

68 SLC Framework Document Annex E Under provisions of the Education (Student Loans) (including those for N. Ireland) and Education (Student Support) Regulations (including those which relate to Scotland and N. Ireland) no loan may be treated as cancelled: a) because of the death of the borrower unless the Company is satisfied that the borrower is deceased. This is achieved in accordance with the company s prescribed Document Control System procedures available on the SLC s intranet under Customer Services Support. b) due to the age of the borrower or the period for which the loan has been outstanding unless the Company has verified that the relevant borrower falls into the relevant cancellation category from the contract records. 7 68

69 SLC Framework Document Annex E Discretionary write-off due to irrecoverability of debt from customer In certain circumstances the Company has authority to write off loan balances in relation to payments made under the both the 1990 and 1998 Acts in full or in part due to the irrecoverability of debt from a customer. These loans are not cancelled and the borrowers remain liable to repay (section confirms arrangements for reinstating balances where repayments are subsequently received from customers). Mortgage Style loan Discretionary write-offs The Company has authority to write-off loan balances in relation to payments made under the 1990 Act in full or in part: i. when the amount to be written off has been rendered uncollectable by virtue of a legal process precluding the Company from further seeking recovery of the balance. Individual Voluntary Arrangements are currently included as such a legal process whilst Bankruptcy is only included to the following extent: Under the Enterprise Act 2002, from 1 July 2004 Scottish loans are no longer to be considered to be bankruptcy debts with the result that these loans will not be written off on discharge from bankruptcy. Under the Higher Education Act 2004 similar provisions apply with regards to bankruptcy for English, Northern Irish and Welsh loans; ii. when the balance is 25 or less and a demand has been made by letter or telephone and no response has been given; or where there is a credit balance of 25 or less this should be written back provided that at least one attempt to repay the borrower has been made. Income Contingent loan Discretionary write-offs The Company has authority to write-off loan balances in relation to payments made under the 1998 Act in full or in part: i. when the amount to be written off has been rendered uncollectable by virtue of a legal process precluding the Company from further seeking recovery of the balance. Individual Voluntary Arrangements are currently included as such a legal process whilst Bankruptcy is only included to the following extent : Under the Enterprise Act 2002, from 1 September 2004 Scottish loans are no longer to be considered to be bankruptcy debts with the result that these loans will not be written off on discharged from bankruptcy. Under the Higher Education Act 2004 similar provisions apply with regards to bankruptcy for English, Northern Irish and Welsh loans. ii. when the balance is 25 or less and a demand has been made by letter or telephone and no response has been given; or where there is a credit balance of 25 or less this should be written back provided that at least one attempt to repay the borrower has been made. 8 69

70 SLC Framework Document Annex E Discretionary write-offs: exceptional cases The Company has authority to write-off individual loan balances in exceptional cases, where the Company believes collections activity in relation to loans made under either the 1990 and 1998 Acts should cease, with the prior written agreement from senior officials of the relevant Department. This provision is not intended to authorise the general write-off of loans, and approval will not be given solely on the basis of loan status, class or category (e.g. loans in arrears for more than a specified number of years). Applications for approval under this provision must be submitted on a case by case basis to the relevant Department. 9 70

71 SLC Framework Document Annex E Administrative write-off due to error in initial application or payment process There are a number of parties in the delivery chain of student financial support including the customer; the Company and its outsourced service providers; delivery partners such as Local Authorities, Education Library Boards, SAAS and the Open University; the education institutions; and the UK banking structure. Given the involvement of all these parties, the complexity of the supporting ICT systems and the large volume of transactions involved, it is inevitable that some administration errors will occur. However there are in essence only 2 resulting outcomes which can lead to financial loss or write-off: i) mispayment/overpayment of a student support product due to miscalculation, misinterpretation or missing information; and ii) payment being issued to incorrect bank account details. i) Overpayment Systemic errors in SLC systems or processes affecting multiple borrowers In any case where there appears to be a systemic error in the SLC s systems or processes which results in multiple borrowers being overpaid, the SLC should agree a recovery strategy with the relevant Department. In any case where a new error emerges the SLC should immediately contact the relevant Department for advice on further action, including whether to proceed with recovery action. Overpayments to individual borrowers In all instances of identified overpayment to an individual customer, attempts will be made to recover the overpayment in accordance with the procedures agreed for that product with the funding body concerned. These include offsetting against future financial support due or where this is not possible by direct repayment from the customer All reasonable efforts will be made to collect these overpayments having consideration, in accordance with Annex 4.11 of Managing Public Money, for; How far the recipient acted in good faith; Consistency with treatment of similar cases; Legal opinion on validity of recipient defences offered; Cost effectiveness of recovery action and enforcement; The relevant personal circumstances of the recipient; The length of time elapsed since the payment was made The Company has authority to write-off overpayment balances in the event of: Death of the recipient; Any of the discretionary factors relating to loan irrecoverability in being applicable; 10 71

72 SLC Framework Document Annex E Consideration of the factors in clause results in the decision not to pursue recovery further. ii) Payment issued to incorrect bank details In all identified instances of payment, which is also considered to cover any repayment refunds, being issued to incorrect bank details where the funds have not been subsequently reimbursed from the banking system or the recipient voluntarily, the source of the error will be investigated Where the source is customer error through provision of inaccurate bank account details all the associated payment transactions will remain on the customer record and no additional replacement payments will be issued unless expressly instructed by the relevant funding body concerned Where the source of the bank details is other than the customer (other than in circumstances which transpire to be fraudulent, in which case see section 3.3.6) and the outcome is payment to a bank account held by another customer the transaction will be transferred to the actual recipient and balances updated accordingly resulting in no write-off or loss Where the source of the bank details is other than the customer (other than in circumstances which transpire to be fraudulent, in which case see section 3.3.6) and the outcome is payment to a superseded bank account of the customer and the bank have retained the funds there is no meaningful method of recovering the funds and an additional replacement payment requires to be issued to the customer. Both payments will remain on the customer s account Where the source is other than the customer and the outcome is payment to a non customer a replacement payment can be issued to the customer (other than in circumstances which transpire to be fraudulent, in which case see section 3.3.6) and all reasonable efforts will be made to collect the incorrect overpayments to the non customer having consideration, in accordance with Annex 4.11 of Managing Public Money, for; How far the recipient acted in good faith; Consistency with treatment of similar cases; Legal opinion on validity of recipient defences offered; Cost effectiveness of recovery action and enforcement; The relevant personal circumstances of the recipient; The length of time elapsed since the payment was made The Company has authority to write-off payments issued to incorrect bank details in the event of: The terms of clause being met; Consideration of the factors in clause results in the decision not to pursue recovery further

73 SLC Framework Document Annex E Due to delay in entering customer into repayment process Due to system functionality and / or administrative problems there can in rare instances be delays in entering a customer in to the relevant repayment process. In such instances the company has authority to remove any additional interest charged to the customers account during the period of delay where it is considered appropriate

74 SLC Framework Document Annex E Fraud write-offs The Company is committed to reducing fraud to the lowest possible level and full details are contained within the separate Fraud Management Policy Where, following appropriate investigations a fraud is considered to have occurred, all reasonable efforts will be made to recover the sums lost via the fraud and consider any control changes or corrective action required The Company has authority to write-off any payments recorded on a customer s account where investigations have confirmed that the payment(s) were not received by the actual customer, but were diverted elsewhere as a result of a fraud perpetrated by another party

75 SLC Framework Document Annex E Authority Application of write-off policy may be authorised by the Finance Director, but final responsibility rests with the CEO as Accounting Officer The Finance Director has delegated responsibility for authorisation of discretionary, administrative and fraud write-offs as detailed in the table below. Sections i and i Sections ii and ii Sections , and Section Collections Team Leader < 1,000 (Legal) Collections Operations < 3,000 Manager (Legal) Collections Manager < 5,000 Head of Finance < 10,000 Finance Director > 10,000 Any Collections Team Leader or Collections or Operations < 25 Manager All Operational Manager < 3,000 Head of Finance < 5,000 Finance Director > 5,000 Company Secretary < 10,000 Finance Director > 10,000 In the case of fraud, in addition to the individual customer values as above, the total value of all associated cases will also be considered and where this exceeds 1m in any one financial year the matter will be referred to the Main Board for approval Processing and Reporting Regulatory write-offs are automatically posted by the CLASS system functionality as part of the month end processing. Discretionary write-offs can be applied by the operational staff with the relevant access. Administrative and Fraud write-offs need to be processed by Finance staff on the basis of duly authorised approvals as they relate to individual transactions as opposed to entire customer balances Each quarter, the SLC shall prepare a report on write-offs for the Finance and Governance Board and the Main Board, showing the ( ) value of write-offs by category (Regulatory, Discretionary, Administrative and Fraud) by debt owner/domicile for the current quarter and cumulative year-to-date, in each case comparing these values to the outstanding loan book. The report will compare these figures to similar figures for the previous financial year, and shall contain a narrative explaining any increase in write-offs relative to the outstanding loan book. If applicable, the report shall also contain an assessment of any factors which the SLC believes could increase the level of write offs in future quarters. This report shall be copied to DIUS as lead Sponsor Department who reserve the right to amend this policy (see ) The figures in this report should be consistent with quarterly information provided to Departments on movements against the loan book

76 SLC Framework Document Annex E Subsequent repayments from borrowers whose transactions have (other than in error) been written off Where the Company has written off a transaction and a repayment is subsequently received for part or all of that item, the Company: a. will return the repayment to the borrower or executor, if the associated debt has been cancelled; or b. will retain the repayment if the write-off was discretionary, administrative or fraud Reinstatement of items written off The Company will reinstate to its books of account a transaction that it has written off where: a. it wrote it off in error; or b. the write-off was discretionary, administrative or fraud and the borrower or recipient subsequently has made a repayment

77 SLC Framework Document - Annex F 77

78 SLC Framework Document - Annex F 78

79 SLC Framework Document - Annex F 79

80 SLC Framework Document - Annex F 80

81 SLC Framework Document - Annex F 81