Department. Framework Document between the Department for Education and the Institute for Apprenticeships. Issued: January 2019

Transcription

1 Department for Education Framework Document between Department for Education Institute for Apprenticeships Issued: January

2 -Ac Contents Introduction to Framework Document Institute for Apprenticeships 4 Amendments to Framework Document 6 Interpretation of Framework Document 6 Founding legislation status of Institute 6 Classification 6 Purpose aims of Institute for Apprenticeships 6 Governance, responsibilities accountability 7 1. The Institute s legal origins of power duties 7 2. Ministerial responsibility accounting in Parliament 8 3, The Secretary of State 8 4. The Department s accounting officer s specific accountabilities responsibilities as Principal Accounting Officer (PAO) 8 5. Sponsorship Team 9 The Sponsor Partnership 9 The Senior Sponsor Chief Executive of ESFA Responsibilities of Institute s Chief Executive as Accounting Officer 11 General 11 Managing conflicts of Interest 11 Responsibilities for accounting to Parliament 11 Responsibilities for accounting to DfE 12 Responsibilities for accounting to Board The Institute s Board 13 The Chair s personal responsibilities 14 Individual Board Members responsibilities Engagement Annual report accounts Internal audit External audit 16 Right of access 17 Management financial responsibilities 17 2

3 13. Managing Public Money or government guidance instructions Corporate Governance 18 Board appointments composition 18 Board appointments Chief Executive Risk management Strategic business plans Budgeting procedures Grant-in-aid any ring-fenced grants Reporting performance to Department 21 Providing monitoring information to Department 21 Dispute resolution process Public complaints Delegated authorities Transparency Freedom of Information requests Staff 23 Broad responsibilities for Institute staff 23 Staff costs 24 Pay conditions of service 24 Pensions, redundancy compensation Review of Institute Abolition arrangements 25 APPENDIX 1- List of delegated authorities 27 APPENDIX 2: Compliance with government-wide corporate guidance instructions 30 APPENDIX 3 Schedule of governance meetings between Department Institute 31 3

4 Institute for Apprenticeships FRAMEWORK DOCUMENT Introduction to Framework Document Institute for Apprenticeships This framework document has been drawn up by Department for Education ( Department) to set up broad framework within which Institute for Apprenticeships ( Institute) will operate, relationship between Institute Department for Education as sponsor department. The Department s sponsor team is located in Education Skills Funding Agency (ESFA), a separate MoU to this framework document sets out day-to-day working arrangements on financial governance elements between Department, ESFA Institute. Copies of framework document any subsequent amendments have been placed in Libraries of both Houses of Parliament will be made available to members of public on Institute s website. This framework does not convey any legal powers or responsibilities. It sets out agreed expectations for how day-to-day interactions will be hled. Both parties agree to operate within its terms. It is signed dated by Department Institute. In this document, unless orwise stated, following definitions shall apply: Accounting Officer 2009 Act Annual Report Accounts Board Chair Department The Chief Executive (CEO) Apprenticeships, Skills, Children Learning Act 2009 The report required to be prepared by Institute under section ZA6 of 2009 Act, including strategic report, directors report, or statements published alongside annual statement of accounts required to be audited by National Audit Office The non-executive members appointed pursuant to Schedule Al of 2009 Act The director appointed to serve as chair of Institute Board by Secretary of State The Department for Education (DfE) 4

5 Employment Regulations The Transfer of Undertakings (Protection of Government The UK Government Employment) Regulations Institute to have a direct relationship with regards to matters of financial planning, Executive Officer). This is to allow Chief Executive Officers (CEOs) of ESFA Principal Accounting Officer), ESFA (Chief Executive Officer) Institute (Chief (MoU) between Accounting Officers of Department (Permanent Secretary, within ESFA, this document is supported by a Memorum of Understing As policy delivery responsibility for apprenticeships technical education sits Secretary of State. rules guidelines relevant to exercise of functions, duties conditions under which any public funds are paid to Institute by powers of Institute; must operate, in particular: This document sets out broad corporate framework within which Institute of Department by Institute to achieve 2 of this agreement. aims objectives specified in section Services The services to be delivered by or on behalf Secretary of State (SoS) The Secretary of State for Education Officer (PAO) Principal Accounting The Department s Permanent Secretary document MoU Accounting Officers of DfE, ESFA Institute in support of this framework Memorum of Understing between Institute Institute for Apprenticeships (a nondepartmental public body, NDPB) Parliament The UK Parliament an executive agency which is part of Department for Education ESFA The Education Skills Funding Agency,

6 Purpose aims of Institute for Apprenticeships budgeting, monitoring reporting, on behalf of Principal Accounting Officer (DfE Permanent Secretary). Amendments to Framework Document The Institute or Department may propose amendments to this document at any time. Any changes to rules guidelines for governance operation of public bodies issued by Cabinet Office or HM Treasury, where se apply to Institute, will be instructed to Institute through amendment of this document. Legislative provisions take precedence over any part of document. Significant variations to document must be cleared with HM Treasury or Cabinet Office as appropriate. Interpretation of Framework Document Any question regarding interpretation of document will be resolved by Department after consultation with Institute, as appropriate, with Cabinet Office /or HM Treasury. Founding legislation status of Institute This framework document has been developed to be consistent with Apprenticeships, Skills, Children Learning Act 2009 ( 2009 Act), as amended, contains legal provisions relating to creation of Institute its functions. Legislation legislative changes will take precedence over any part of this document. Classification For national accounts purposes, Institute is classified to central government sector. This means that annual report accounts of Institute are fully consolidated into Departmental group s annual report accounts. For policy / administrative purposes, Institute is classified as an NDPB is a Crown Body. The Institute is a non-departmental public body sponsored by Department, it has been created in order to support strategic aims of Department integrity of apprenticeships technical education systems. Its current remit is to assure quality of apprenticeships provide advice to Government on future funding provision for apprenticeship training. 6

7 The Institute has several core functions set through legislation1: selling quality criteria for of all occupational plans, irrespective of level, for which Institute appropriate; reviewing, rejecting or approving ( publishing) plans; for describing occupation will be to attain to maintaining publishing occupational maps in relation to 15 occupational routes; all end-point quality including quality itself. assessment considers assessment each stard, person ensuring assuring some expected development assessments are occupations stards stards outcomes which a successfully achieve stard; assured. In addition, Institute will provide advice in relation to: assistance2 to Secretary of State funding provision for development apprenticeship training; of T Levels, in particular technical qualifications procurement of awarding to develop of relevant provisions of Technical Furr Education Act 2017 being commenced). organisations education those (ahead On commencement ot relevant provisions of Technical Furr Education Act 2017 (date to be confirmed) Institute for Apprenticeships will become Institute for Apprenticeships Technical Education will have responsibility for approving qualifications that form part of T Levels, including making arrangements to secure availability of qualifications for approval3. The Institute will also have responsibility for determining additional steps towards occupational that make up each T Level programme4. competence Governance, responsibilities accountability 1. The Institute s legal origins of power duties The Institute s powers stem from Learning Act 2009 ( 2009 Act), Technical Furr Education Act 2017 (once duties Apprenticeships, Skills, Children Schedule as amended, including by in full). commenced 1 to Act, s ZA Act, s A2DA 2009 Act, s A2DB 7

8 2. Ministerial responsibility accounting in Parliament The Secretary of State for Education ( Secretary of State) Minister of State for Apprenticeships Skills will account for Institute s business in Parliament. The minister will have lead responsibility for oversight of Institute on a day-to-day basis. The Secretary of State can ask Institute to prepare submit a report, as soon as reasonably practical, on any matter relating to its functions.5 3. The Secretary of State The Secretary of State will provide advice on context focus of Institute s activities, on departmental policy, through strategic guidance6, to which Institute must have regard. Although Secretary of State will not be able to intervene in decisions made by Institute, he or she can issue written directions to Institute in following circumstances: if he/she is satisfied that Institute has failed to discharge one of its duties or if he/she is satisfied that Institute has acted, or is proposing to act, unreasonably in exercising any function.7 On commencement of relevant provisions of Technical Furr Education Act 2017 a direction can be made in connection with exercise of any function relating to Institute s technical education powers without requirement to be satistied of matters set out above.6 The Institute has a statutory obligation to comply with any such direction.9 4. The Department s accounting officer s specific accountabilities responsibilities as Principal Accounting Officer (PAO) The Permanent Secretary as Department s Principal Accounting Officer (PAO) has designated Chief Executive as Institute s Accounting Officer. The role responsibilities of an Accounting Officer are set out in Chapter 3 of Managing Public Money, a letter is sent separately to Accounting Officer on appointment. The PAO is accountable to Parliament for issue of any grant-in-aid to Institute. The PAO is also responsible for advising Minister of State for Apprenticeships Skills on: an appropriate framework of objectives targets for Institute in light of Department s wider strategic aims priorities; 2009 Act, s ZA6 (5) 2009 Act, s 2A2 (2) 2009 Act, S 7A Act, s A2DC 2009 Act, s ZA8 S

9 appropriate budget an for Institute in light of public expenditure priorities; Department s overall how well Institute is achieving its strategic objectives wher it is delivering value for money. The PAD is also responsible for ensuring monitor Institute s activities; address are arrangements are in place in order significant problems in Institute, making such interventions judged necessary; periodically carry out an of risks both to Institute s objectives activities; concerns about assessment government to: Department inform Institute of relevant policy in a timely manner; bring activities of Institute to full Institute Board,, appropriate, to Department s Board, that appropriate action as assurances has been taken. as requesting explanations The PAD is for making to satisfy himself or herself Institute to meet stards set out in box 3.1 of Managing Public Money (ie. Institute effectively to a high of probity). stard responsible has systems adequate that arrangements operates that 5. Sponsorship Team The Sponsor Partnership The Department is for Institute. The Department Institute will have an honest, by principles out in Arm s Length Bodies: Code of Good Practice. As such, both will y clearly strategic aims objectives of or party. Both will also commit to keeping or informed of any significant open sponsor trust-based partnership supported Partnerships between Departments each partners ensure issues underst partners concerns. The team, located within ESFA (as an Executive Agency of Department), is primary first port of call for Institute, on all Department /or central government s of Institute. The will support Chief Executive of ESFA in ir responsibilities toward Institute will provide briefing to effective support, monitoring at quarterly ministerial meetings. They commission, though Strategic Guidance, monitor Institute s activities, providing that Institute is delivering its objectives. They will provide oversight of Institute of advice to Minister of for Apprenticeships Skifls on of his or responsibilities in of Institute. They also support PAD on his or responsibilities towards Institute. sponsor questions about enable State sponsor team respect contact challenge The Institute will regularly report programme objectives, out in as set as Senior Sponsor, progress are main source discharge on its performance requirements performance against Strategic Guidance, to 9 her set her relevant apprenticeship

10 TE SROs This will be done on a continuing basis through a proportionate timely flow of information from Institute. The Senior Sponsor The Department s Senior Sponsor for Institute will be Chief Executive of ESFA. If this post is at any time vacant after signing of this document, Director for Apprenticeships will oversee sponsorship until a suitable replacement is in post. The Senior Sponsor will: act as senior point of liaison between Institute, Department, Secretary of State Ministers; be main source of advice to Ministers on discharge of his or her responsibilities in respect of Institute; support advise PAO on his or her responsibilities toward Institute; ensure that, where reasonably possible, Institute s Chief Executive has advance notice of wider government announcements on apprenticeships; aid flow of information nurture relationships, facilitating Institute s relationships with officials in or government Departments where reasonably possible; work collaboratively with Institute s Chief Executive to facilitate smooth operation of arrangements set out in this framework document; ensure requests for approval of expenditure are dealt with promptly proportionately, that Departmental approval is not unreasonably delayed /or withheld for any reason, except where Secretary of State reasonably considers that proposed expenditure does not represent value for money. HM Treasury approval should be sought for all novel, contentious or repercussive expenditure in line with stard Departmental/ESFA procedures (see DfE referral process in Appendix 1). 6. Chief Executive of ESFA As well as Senior Sponsor, Chief Executive of ESFA is Accountable Budget Holder for apprenticeships technical education programmes so will represent PAD in process of business planning budget allocation for Institute. This role is separate to role of Chief Executive as Accounting Officer for ESFA. The roles of Senior Sponsor Accountable Budget Holder do not always need to be held by same person in Department or ESFA, but do so for purposes of this framework document. The Institute AD remains ultimately accountable to PAO for Institute s finances. Furr detail on relationship between PAD, Institute s AD Chief Executive of ESFA is set out in Memorum of Understing supporting this framework document Act, s ZA2 (2) 10

11 7. Responsibilities of Institute s Chief Executive as Accounting Officer General The Chief Executive as Accounting Officer is personally responsible for: safeguarding public funds far which he or she has charge; ensuring propriety, regularity, value for money feasibility in hling of those public funds; day to day operations management of Institute; ensuring Institute as a whole is run on basis of stards, in terms of governance, decision-making financial management that are set out in Box 3.1 of Managing Public Money. Managing conflicts of Interest The Chief Executive should delegate to Institute s Finance Director11 (or one of or Executive Board members) discretion to refer proposals which could involve a conflict of interest to Board, without first consulting him or her, if y believe that a conflict of interest arises it would be inappropriate to bring it to Chief Executive s attention first. Responsibilities for accounting to Parliament The accountabilities include: signing Annual Report Accounts (ARA); ensuring that proper records are kept in relation to accounts ensuring that se are properly prepared presented in accordance with 2009 Act by:12 preparing signing a governance statement covering corporate governance risk management for inclusion in ARA;13 ensuring that effective procedures for hling complaints about Institute are established made widely known within Institute, including how, where necessary, complaints will be escalated to Department; acting in accordance with terms of this document, Managing Public Money or instructions guidance issued from time to time by DfE, HM Treasury Cabinet Office; giving evidence, normally with PAO, when summoned before Public Accounts Committee, on Institute s stewardship of public funds. ensuring Parliament is informed in a timely manner of transactions which are required to be specifically reported to it. In this instance, Finance Director refers to a qualified finance professional at SCS level. This requirement is met by Chief Financial Officer at Institute Act, s ZA6 paragraph 11 of Schedule Al Act, 5 ZA6 (2) 11

12 The Institute will provide substantive answers to parliamentary questions directly by letter from Chief Executive to Member of Parliament where questions relate wholly to Institute s own activities. In se cases, Minister will table a written answer indicating that Institute will write to Member directly, undertaking to place a copy of Institute s reply in Libraries of both Houses (as appropriate). Responsibilities for accounting to DIE Particular responsibilities to DfE include: establishing, in agreement with Department, Institute s corporate business plans in light of Department s wider strategic aims agreed priorities; informing Department of progress in achieving Institute s objectives in line with strategic guidance issued by Department, in demonstrating how resources are being used to achieve those objectives; ensuring that timely forecasts monitoring information on performance finance are provided to Department; that DfE is notified promptly if over or under spends are likely that corrective action is taken; that any significant problems wher financial or orwise are notified to Department in a timely fashion.14 ensuring re is a named senior information risk owner (SIRO) responsible for organisation s information risk process. Responsibilities for accounting to Board The Chief Executive is a member of Institute s Board, with particular responsibility for: advising Board on discharge of its responsibilities as set out in this document, in 2009 Act, in any or relevant instructions or guidance that may be issued from time to time; advising Board on Institute s performance compared with its aims objectives; ensuring that financial considerations are taken fully into account by Board at all stages in reaching executing its decisions, that financial appraisal techniques are followed; taking action as set out in paragraph of Managing Public Money if Board, or its Chair, is contemplating a course of action involving a transaction which Chief Executive considers would infringe requirements of propriety or regularity or does not represent prudent or economical administration, efficiency or effectiveness, is of questionable feasibility, or is unethical Act, paragraph 13 to Schedule Al. See also HM Treasury s Managing Public Money, which sets out main principles for dealing with resources in UK public sector organisations. 12

13 8. The Institute s Board The Board should that effective are in place to provide on risk management, governance internal control. The Board should up an Audit Committee chaired by an nonexecutive member to provide advice. The Board is to itself of of internal control risk management systems. The Board must also a Remuneration Committee chaired by an nonexecutive board member to fulfil of pay framework in place at time. assurance set The Board ensure Rsk Assurance effectiveness have has independent collective responsibility for: establishing guidance duties framework available; strategic statutory strategic as set issued arrangements requirements agreed independent expected independent direction of Institute in line with to Institute ensuring it out in 2009 Act within discharges resources assure determining to deal with any which likely to affect Institute s ability to its statutory functions keeping Minister of State for Apprenticeships Skills informed if any arise; are ensuring steps necessary such developments that any statutory or administrative public funds are complied with; ensuring operates delegated discharge developments requirements for that Institute within limits of its statutory authority any authority with Department, in with any conditions relating to of public funds that, in decisions, Board in Managing Public Money any by central Government. If, in practice, any of should be found to constrain Institute in of its functions, Institute to alert team who will liaise with issuing to to lift requirement on provided by Institute. The team will notify Institute of outcome promptly; accordance agrees department evidence ensuring management concerns assurance such or reaching agreed acts use subsequent guidance issued guidance requirements discharge sponsorship consider sponsorship request use its of accordance with based that it regular financial information concerning of Institute; is informed in a timely manner about any about activities of Institute; provides positive to that action taken on concerns; demonstrating receives high including by using key financial Department stards or of independent risks. appropriate corporate governance has been at all times, audit committee to help it address Appointing, after consulting of State, a Chief Executive, setting objectives remuneration linked to objectives for Chief Executive which give utilisation of public se performance proper management use Secretary terms due weight to resources. 13

14 The Chair s personal responsibilities The Chair is responsible to Minister of State for Apprenticeships Skills for ensuring that Institute fulfils its statutory functions as set out in 2009 Act. Communications between Institute s Board Minister should normally be through Chair. He or she is responsible for ensuring that Institute s affairs are conducted with probity. Where appropriate, se policies actions should be clearly communicated disseminated throughout Institute. In addition, Chair has following leadership responsibilities: formulating Board s strategy; ensuring that Board, in reaching decisions, takes proper account of guidance provided by Minister or Department; promoting efficient effective use of staff or resources; delivering high stards of regularity propriety; representing views of Institute to external stakeholders general public. annually reviewing performance of Board, committees individual Board members. The Chair also has an obligation to ensure that: work of Board its members are reviewed are working effectively; Board has a balance of skills appropriate for directing Institute s business, as set out in Government Code of Good Practice on Corporate Governance; Board members are fully briefed on terms of appointment, duties, rights responsibilities; he or she, toger with or Board members, receives appropriate training on financial management reporting requirements on any differences that may exist between private public practice; responsible minister is advised of Institutes needs when Board vacancies arise; performance of individual Board members is assessed if y are being considered for re-appointment; re is a Board Operating Framework in place setting out role responsibilities of Board consistent with Government Code of Good Practice for Corporate Governance;, re is a code of practice for Board members in place consistent with Cabinet Office Code of Conduct for Board Members of Public Bodies. Individual Board Members responsibilities Individual Board members should: 14

15 comply at all times with Code of Conduct for Board Members of Public Bodies with rules relating to of public funds conflicts of interest; not misuse information gained in of ir public service for gain or for political profit, nor to opportunity of public service to promote ir private interests or of or personal persons organisations; comply with Board s rules on of act in good faith in business appointments; course seek acceptance best interests use use those of Institute. connected of gifts hospitality to 9. Engagement The Department Institute shall meet at often at Appendix 3. Additional Institute. governance meetings schedule necessary between 10. Department Annual report accounts The Institute must it to review in a timely enable operate management performance against budgets targets set least as as meetings specified in will be agreed as information accounting which effective manner its financial non-financial out in its plans. corporate systems business The Institute will form part of department s Annual Report Accounts, to this end, of Institute must be reported to Department on a regular The Institute must provide Department with such financial or information is required for performance basis. corporate accordance as departmental management purposes. In with section ZA6 of 2009 Act, Institute must a of at of financial year. The Institute must a copy of of to of State, Comptroller Auditor General, before end of month of August following financial to which A draft of Institute s report should be to Department in time for consolidation within Department s statement accounts each statement year accounts end accounts statement relates. sent accounts. each Secretary annual prepare send or The annual report should: cover any control; corporate, subsidiary or joint ventures under Institute s comply with Treasury s Financial Reporting Manual (FReM); outline main activities during previous financial set out in summary form future plans. year performance The should be in with relevant specific direction by Department well FreM. Information on key financial is within audit should be included in annual report. accounts accounts prepared issued performance against accordance as targets as statutes scope of 15

16 shall A draft of annual report accounts must be sent to sponsor team as soon as possible after it has been prepared at least two weeks before proposed publication date, subject to audit. The Secretary of State is responsible for laying a copy of annual report accounts in Parliament. The Institute should publish a copy of annual report accounts on DfE website. 11. Internal audit The Institute must establish maintain arrangements for internal audit in accordance with HM Treasury s Public Sector Internal Audit Stards (PSIAS). The internal audit arrangements for Institute must have regard to Department s Group Internal Audit operating model (operational detail to be agreed between Head of Internal Audit (HIA) of Institute Department s Group HIA). The Institute s internal audit function will be provided by Government Internal Audit Agency (GIAA). The Institute is responsible for: ensuring GIAA has complete access to all relevant records; setting up an Audit Risk Assurance Committee (ARAC) of its Board in accordance with good practice suggested in Cabinet Office Corporate Governance in Central Government Departments: Code of Good Practice HM Treasury s Audit Risk Assurance Committee Hboo?ç forwarding audit strategy, periodic audit plans annual audit report to GIAA; putting in place effective controls to prevent fraud ft; reporting all cases of attempted, suspected or proven fraud, irrespective of amount involved, notifying Department of any unusual or major incidents as soon as possible. 12. External audit In accordance with paragraph 11 of Schedule Al to 2009 Act, Comptroller & Auditor General (C&AG) audits Institute s annual accounts passes a copy of audited annual report accounts to Secretary of State who will lay annual report accounts, which includes C&AG s report, before Parliament. Under 2009 Act,15 Institute must obtain consent from Secretary of State if it wants to set up a subsidiary company. In event that Institute has set up controls subsidiary companies, Institute will ensure that C&AG is appointed auditor of those company subsidiaries that it controls or whose accounts are consolidated within its own accounts. The Institute shall discuss with DfE procedures for appointing C&AG as auditor of companies. The C&AG: will consult Department Institute on whom NAO or a commercial auditor undertake audit(s) on his behalf, though final decision rests with C&AG; Act1 paragraph 10(4) of Schedule Al 16

17 has a statutory right of to relevant of section 25(8) of held by party in receipt of Institute; those share anor access Government Resources documents, payments including by virtue Accounts Act 2000, or from grants will with DfE information identified during audit audit report particular on impacting on Department s responsibilities in relation to financial within Institute; process (toger with any or outputs) at end of audit, in issues systems will, where provide or relevant with Regulatory Compliance Reports or similar reports which at of audit which are compatible with auditor s role. asked, departments may request departments commencement independent bodies The C&AG may carry out into economy, efficiency with which Institute its in discharging its functions. For of C&AG statutory provided for under section 8 of National Audit Act In addition, Institute shall provide, in conditions to contracts, for C&AG to such to held by grant recipients examinations, shall its to for C&AG to any required by C&AG which held by or bodies. effectiveness documents as contractors use documents purpose examinations has used se examinations resources grants exercise sub-contractors as may be required for best endeavours access documents secure access are se has or access to Right of access The Institute will allow where this is for proper of for Apprenticeships Skills in State reasonable access necessary by DfE to Institute records of responsibilities of of Institute to Parliament. discharge respect personnel Minister Management financial responsibilities 13. Managing Public Money or government guidance instructions Unless by Department, HM Treasury, Institute shall follow rules, advice in Managing Public Money, referring any difficulties or potential bids for to in ESFA in first instance. A list of instructions with which Institute should comply is in Appendix 2. agreed stards, guidance as necessary, guidance exceptions Once budget approved by Department, Institute authority to incur approved in budget without furr Department, providing that: has been expenditure Institute complies with shall not be Department (through delegations delegations set altered Senior sponsorship team has reference out in Appendix 1. without prior of Sponsor); agreement Institute complies with Managing Public Money regarding novel, or contentious repercussive proposals; to These 17

18 inclusion of any planned approved expenditure in budget does not remove need to seek formal departmental approval (through Senior Sponsor), where any proposed expenditure is outside delegated limits or is for new schemes not previously agreed; Institute provides Department with such information about its operations, performance, individual projects or or expenditure as Department may reasonably require. Institute ensures that its staff are familiar with requirements of Managing Public Money ; specific transactions which Department is required to report to Parliament are brought to Department s attention expeditiously transparently The Permanent Secretary as PAO delegates financial authority directly to Accounting Officer of Institute. The Institute s Accounting Officer is refore accountable to PAO. The Institute s AO should aim to resolve matters relating to day-to-day financial governance, budgets, or expenditure with Chief Executive of ESFA (in ir role as Accountable Budget Holder for Apprenticeships Technical Education programmes). If such matters cannot be resolved, or pose significant risk to Department, Institute s AO should notify PAO. 14. Corporate Governance Board appointments composition Chair Board members appointments will be made by Secretary of State in accordance with Schedule Al to 2009 Act Code of Practice for Ministerial Appointments to Public Bodies. The Board is consisted of a Chair, a Chief Executive a furr 4-10 members, as is set out in legislation establishing Institute. In line with MPM chapter 4, box 4.1 annex 4.1, a qualified finance director16 must also attend all Board meetings. The finance director is to: o be professionally qualified17; o report directly to permanent head of Institute; o be a member of senior leadership team, management board executive committee (/or equivalent bodies). 16 In this instance, Finance Director refers to a qualified finance professional at SCS level. This requirement is met by Chief Financial Officer at Institute. 17The term professional finance director in this context means both being a qualified member of one of five bodies comprising Consultative Committee of Accounting Bodies (CCAB) in uk Irel, ie. Chartered Institute of Public Finance Accountancy, Institute of Chartered Accountants in Engl wales, Institute of Chartered Accountants of Scotl, Institute of Chartered Accountants in Irel, Association of Chartered Certified Accountants, or having equivalent professional skills /or qualifications; having relevant prior experience of financial management in eir private or public sector. 18

19 15. Risk management In accordance with 2009 Act,18 first Chief Executive was appointed by will be appointed for a term of no more than five years. Board appointments - Chief Executive be appointed by Board after consulting Secretary of State. Chief Executives Institute s business. Secretary of State in consultation with Chair. Subsequent Chief Executives will It should adopt implement appropriate policies practices to safeguard Act, paragraph 5 of Schedule Al Act, s ZA6 (5) 19 plan shall be updated to include key targets milestones for year immediately years.19 be published by Institute on its website made available to staff. an estimate of performance in current year, where relevant; Institute s annual business plan. The business plan should include a forecast of expenditure for financial year to which business plan relates, suitably achieve specific objectives can readily be identified by Department. comparable outturns for Institute s previous two years of operation, key objectives associated key performance targets for forward years, a review of performance in preceding financial year, toger with Subject to any commercial considerations, strategic business plans should strategy for achieving those objectives; which should reflect its strategic direction, priorities objectives for next three The Institute should provide, at times agreed with Department, its strategic plan Each year of three-year plan, amplified as necessary, should form basis of classified by activity key objectives, clear success indicators. The business The following key matters should be included in plans: ahead shall be linked to budgeting information so that resources allocated to 16. Strategic business plans any firm or or body with which it intends to enter into a contract or to give grant or itself against fraud ft, in line with HM Treasury s guide: Managing Risk Guidance HM Treasury guidance: Management of Risk: Principles management strategy in accordance with Department s Risk Management Policy facing Institute in delivering its strategic objectives. It should develop a risk of Fraud. It should also take all reasonable steps to appraise financial sting of grant-in-aid. manner in accordance with best practice in corporate governance. The Board Concepts ( Orange Book). The Institute should ensure that risks that it faces are dealt with in an appropriate should define organisation s risk tolerance retain oversight of key risks members should have a balance of skills experience appropriate to directing The composition of Board will reflect employer-led ethos of Institute,

20 including an assessment of risk factors that may significantly affect execution of plan but that cannot be accurately forecast; plans for stakeholder communications public communications; or matters as agreed between Department Institute. The main elements of plan, including key performance targets, must be agreed by Institute s Board, with representation from Department. Agreement should be undertaken in context of Strategic Guidance Department s wider public expenditure plans decisions. Elements that have a direct impact on budget/resources should be flagged to senior sponsor. 17. Budgeting procedures Each year, in light of decisions by Department on Institute s updated strategic plan, Department will send to Institute:2 a formal statement of budgetary provision allocated by Department in light of competing priorities across Department of any forecast income approved by Department; a statement of any planned change in policy affecting Institute, through strategic guidance. The annual business plan should take account both of approved funding provision any forecast receipts, should include a budget of estimated payments receipts toger with a profile of expected expenditure of draw-down of any departmental funding or or income over year. These elements form part of approved business plan for year in question. 18. Grant-in-aid any ring-fenced grants Any grant-in-aid provided by Department for year in question will be voted on in Department s Supply Estimate be subject to Parliamentary control. Funding should be phased through year in instalments designed to echo Institute s expenditure pattern. In this way Institute need not carry significant cash balances at year end. The grant-in-aid will normally be paid in monthly instalments on basis of written applications showing evidence of need. The Institute will comply with general principle that re is no payment in advance of need. Cash balances accumulated during course of year from grant-in-aid or or Exchequer funds should be kept to a minimum level consistent with efficient operation of Institute; this total should not exceed 2% of total annual grant-in-aid. The Institute should comply with Treasury guidance that prevents any more than 2% being carried forward. Grant-in-aid not drawn down by end of financial year shall lapse. Subject to approval by Parliament of relevant Estimates Act, S ZA2 (2) 20

21 provision, where grant-in-aid is to avoid at end, Department wul make available in next financial any such grant-inaid that is required to meet any liabilities at end (such creditors), in line with HMT budget set out in Budgeting Guidance. agreed delayed excess cash balances year exchange arrangements, as year as year Consolidated In event that Department provides Institute for specific (ring-fenced) it would grant when Institute it on of a written request. The Institute would provide that was for by Department. The Institute shall not have uncommitted grant funds in h, nor carry grant funds over to financial year. 19. basis used purposes, issue purposes authorised Reporting performance to Department as separate grants evidence anor needed The Institute should information accounting it to review in a timely effective manner its financial non-financial performance out in its plans. The Institute should inform Department of any that make of objectives more or less difficult. enable achievement against operate management, budgets targets set corporate changes grant systems that business Institute officials should report financial non-financial performance, of key objectives performance Department s through monthly meetings with officials in team in ESFA. ESFA officials should also opportunity to explain wider policy that might have an impact on Institute, vice achievement guidance developments take against sponsorship versa. strategic The Chief Executive of ESFA, for Apprenticeships Technical Education reform will meet with Institute Chief Executive on a quarterly to objectives. The Minister of for Apprenticeships Skills will meet with Chair Chief Executive twice a part of an annual review at or points in Furr detail on of is at Appendix 3. basis State year as year as necessary. programmes, SROs discuss performance against budgets performance schedule governance meetings The Institute Department will comply with a Service Agreement for key supporting functions, setting out service level of both parties. Deviation from commitments within this Agreement will be raised through sponsorship team agree agreed escalated as necessary. Shared expectations Providing monitoring information to Department As a minimum, Institute should provide Department with information monthly that will Department satisfactorily to monitor: enable The Institute s cash management; Its draw-down of grant-in-aid; The forecast outturn by resource headings. In addition, Institute should provide Department with: 21

22 or data required for Transparency reporting; an explanation of budget variances; or data, including monthly forecast profiles actuals required for Online System for Central Accounting Reporting (OSCAR) (an HMTreasury system); Its performance against key performance indicators measures. The Institute will also need to contribute to Department s quarterly GMPP returns, to enable effective budget monitoring against published objectives of apprenticeship technical education programmes. Dispute resolution process It is expected that Institute will continue to work closely with Department on areas where Department maintains policy responsibility (set out in strategic guidance). Where it may be considered useful, such as where focus of a policy might change or require furr clarification, Secretary of State is able to issue furr statutory notices to Institute throughout year. We would expect discussions around policy changes to be discussed agreed between officials in Department Institute, following advice from Ministers. Any disputes between Department Institute will be resolved in as timely a manner as possible. The Department Institute will seek to resolve any disputes through an informal process in first instance. The sponsorship team in ESFA should be first point of contact should this informal process fail to resolve issue. The sponsorship team will escalate to Institute s Senior Sponsor Apprenticeships Technical Education Programme Directors as necessary. A formal process, overseen by Senior Sponsor, will be used to resolve issue. Failing this, Senior Sponsor will ask Permanent Secretary to oversee dispute. The Permanent Secretary may n choose to nominate a non-executive member of Department s Board to review dispute, mediate with both sides reach an outcome, in consultation with Secretary of State. 20. Public complaints The Institute should hle comments, suggestions complaints in accordance with its clear procedure in line with Parliamentary Health Service Ombudsman s Principles of Good Complaint Hling. The Institute should publish guidance on submitting complaints to it on its website. This shall be in accordance with Parliamentary Health Service Ombudsman s Principles of Good Complaint Hling. 21. Delegated authorities The Institute s delegated authorities are set out in Appendix 1. The Institute shall obtain Department s written approval (through Senior Sponsor) before: entering into any undertaking to incur any expenditure that falls outside delegations or which is not provided for in Institute s annual budget as approved by Department; 22

23 advice in Managing Public Money. making any significant change in scale of operation or funding of any carrying out policies that go against principles, rules, guidance making any change of policy or practice which has wider financial implications that might prove repercussive or which might significantly affect future level of resources required; or initiative or particular scheme previously approved by Department; implications; Act, paragraphs(s) of Schedule Al time; Institute s performance measurement systems are reviewed from time to rules for recruitment management of staff create an inclusive level structure of its staffing, including grading staff performance of its staff at all levels is satisfactorily appraised support apprenticeships programme to recruit apprentices conditions of service, subject to approval from Secretary of State.21 The broad responsibilities toward its staff are to ensure that: economy, efficiency effectiveness; wherever possible; appointment advancement is based on merit numbers, are appropriate to its functions requirements of The Institute will be responsible for determining number of staff it has ir culture in which diversity is fully valued; recruitment policy is to orientation, race, colour, ethnic or national origin, religion, disability, community background or age; re is no discrimination on grounds of gender, marital status, sexual As provided for in 2009 Act, Institute staff will be employed as civil servants. Broad responsibilities for Institute staff 24. Staff prior to any disclosure of information that may affect ir respective responsibilities. Information Act 2000, party receiving request will consult with or party Where a request for information is received by eir party under Freedom of 23. Freedom of Information requests management, operations staff conduct. practice or guidelines issued by Government which relate to ir financial The Institute shall act in a transparent manner shall abide by applicable codes of 22. Transparency novel or contentious, or which has or could have significant future cost incurring expenditure for any purpose that is or might be considered

24 Staff costs its staff are encouraged to acquire appropriate professional, management or expertise necessary to achieve Institute s objectives; proper consultation with staff takes place on key issues affecting m; adequate grievance disciplinary procedures are in place; whistle-blowing procedures consistent with Public Interest Disclosure Act 1998 are in place; A code of conduct for staff is in place based on Cabinet Office s Mode! Code for Staff of Executive Non-Departmental Public Bodies. Subject to its delegated authorities, Institute should ensure that creation of any additional posts does not incur forward commitments that will exceed its ability to pay for m. Pay conditions of service Institute staff are subject to levels of remuneration terms conditions of service (including pensions) within general pay structure agreed by DfE. The Institute has delegated power to amend se terms conditions in line with HM Treasury pay guidance will be subject to agreement by Department. Civil service terms conditions of service apply to rates of pay non-pay allowances paid to Institute staff to any or party entitled to payment in respect of travel expenses or or allowances. Payment shall be made in accordance with Civil Service Management Code except where prior approval has been given by DfE to vary such rates. Staff terms conditions should be set out in an Employee Hbook, which should be provided to sponsor team toger with subsequent amendments. The Institute should operate a performance-related pay scheme that will form part of annual aggregate pay budget approved by Department. The travel expenses of board members should be reimbursed in line with Institute s expenses policy. The Institute shall comply with EU Directive on contract workers Fixed- Term Employees (Prevention of Less Favourable Treatment) Regulations Pensions, redundancy compensation Institute staff shall normally be eligible for a pension provided by membership of Principal Civil Service Pension Scheme (PCSPS). Any proposal by Institute to move from existing pension arrangements, or to pay any redundancy or compensation for loss of office, requires prior approval of Department HM Treasury/Cabinet Office where applicable. Proposals on severance must comply with rules in chapter 4 of Managing Public Money Cabinet Office guidance on severance payments. 24

25 25. Review of Institute The Institute will be to a Tailored Review by Department (in line with Cabinet Office policy for tailored reviews of public bodies) at least in lifetime of Parliament or in event of a significant in or direction of its primary aims. reviews that public body is delivering effectively its aims objectives provide a robust to, on, continuing for individual both ir functions form. Where it is that an organisation should be retained, will be a review of: scope each assurance subject against sooner agreed These need ensure change organisations once challenge its capacity for delivering more effectively efficiently, including identifying potential for efficiency savings, where appropriate, its ability to contribute to economic growth. The review should include an of of organisation or that are in place for making such control in place to that organisation its complying with principles of good assessment processes performance governance arrangements sponsor are corporate governance. assessments; assurance ensure recognised re The Department will a Tailored Review in liaison with Cabinet Office with consideration for or priorities. This will be at an point to Institute s Department s future is currently to place in The Terms of for this review will include: consider planned schedule take progress conducted reference overall efficiency of Institute; current context, ongoing future requirements; ways of working. appropriate needs This Agreement will be reviewed jointly by Department Institute following review of Institute s functions provided for above, or at any paint with of Department Institute. each agreement as 26. Abolition arrangements The Institute event that Parliament should legal entity any such legislation. li ensure assets accounted assets has been established as arrangements a statutory corporation Crown Body. In legislation for Institute to be abolished a should be given effect to in with that pass accordance Institute is Department shall put in place to orderly abolition of Institute. In particular, it should that liabilities of Institute are to any organisation for properly. In event that is no liabilities should revert to Department, which shall: ensure abolished procedures passed re successor arrangements ensure successor organisatian, that are in in Institute to gain on key financial commitments, flows or information to hle abolition effectively to maintain momentum of work inherited by any residuary body; assurance needed transactions, place cash independent as 25

26 specify basis for valuation accounting treatment of Institute s assets liabilities; ensure that arrangements are in place to prepare closing annual report accounts pass to C&AG for external audit, that, for non-crown bodies funds are in place to pay for such audits. It shall be for C&AG to lay final annual report accounts in Parliament, which include ir report on accounts; arrange for most appropriate person to sign closing annual report accounts. In event that anor arm s length body (ALB) takes on role, responsibilities, assets liabilities, succeeding ALS AC should sign closing annual report accounts. In event that Department inherits role, responsibilities, assets liabilities, Department s AC should sign; meet any abolition costs that Institute cannot meet within its remaining in-year budget. More broadly, The Department Institute are signatories to a keep-well agreement, which sets out arrangements if Institute is unable to meet its payment obligations. JInrEiin tcr Permanent Secretary date 17/01/2019 (On behalf of Department for Education) Sir Gerry Berragan Chief Executive date (On behalf of Institute) 26

27 APPENDIX 1 - List of delegated authorities These delegated limits must be in document, which out incurring any expenditure, in line with DfE referral below). sets process used areas where accordance with section 21 of framework seek stard Institute should DfE approval before Departmental/ESFA procedures (see 1. GIFTS The Institute should record all gifts given received in a gifts register. Gifts received by Institute Unlimited Gifts given in a financial year, any one gift or total of 0 to one sifts person/organisation 2. LOSSES, WRITE OFFS AND SPECIAL PAYMENTS The write-off of staff authorised losses or approval of special should only be carried out by to do so by on behalf of Institute s accounting officer. payments Losses, write offs special Consolatory payments payments Special severance payments are novel contentious always require I-/MT approval. All redundancy payments outside contractual terms require DfE Cabinet Office permission in all cases. 3. CONTINGENT LIABILITIES Guarantees indemnities 0 DfE approval for any in this category). (please seek expenditure 4. CONTRACTS Unlimited authority for contracts, to section 21 following which all require Office approval. Limits apply for life of contract, excluding VAT where applicable. Unless orwise specified, DfE limits for Institute are Cabinet Office limits, in all DfE to be in place prior to Cabinet Office: needs Cabinet same as subject approaching cases exceptions clearance Property, including facilities management DfE limits As Cabinet Office Cabinet Office limits 100,000 All new 27

28 extended facilities management contracts must be approved, regardless of cost. Commercial control, including disputes 2.lm LiOm ( Institute must inform Cabinet Office DfE ofjjy dispute with a (this applies to Government Strategic Supplier where individual contracts dispute is proposed for escalation to with a value of mediation, binding arbitration, could enter 1 0m or more, a formal dispute stage, or may result in framework early termination of a contract, but only agreements or seek Cabinet Office clearance for any settlement likely to exceed LIOm) Advertising, marketing As Cabinet 100,000 communications Office dynamic purchasing systems where cumulative value of spend is lom or more, material changes that result in a contract variation of LiOm or more). This must be recorded in a commercial pipeline. Existing future digital technology 25, ,000 spend Where value of (All novel contentious digital As Cabinet contract is at or technology spend will need to be Office greater than recorded in a digital pipeline) above limits, it should be added to digital pipeline. Learning development (Civil Service As Cabinet 10,000 (for Learning) Office Departmentspecific L&D) All L&D that falls outside core curriculum must be approved. : Consultancy 20,000 lm Redundancy compensation schemes As Cabinet All require approval Office External recruitment 142,000 n/a 28

29 5. DfE REFERRAL PROCESS The Institute must refer any business cases which exceed limits detailed in this appendix, or for which HM Treasury cannot delegate authority (e.g. novel, contentious, /or repercussive), as follows: A copy of business case should be sent to commercial business partner (in case of commercial controls), finance business partner, sponsorship team, cc-ing DfE Efficiency Controls (EC) team - request.ec@education.gov.uk DfE will aim to send DfE approvals back within one week The Finance Business Partner/sponsorship team will liaise with HMT to seek any necessary approvals. Business cases should follow 5-case model set out in Treasury Green Book make clear what legal advice has been followed (where appropriate), as well as flagging any wider impacts on Departmental policies, programmes or resource. When expenditure requires Cabinet Office approval, Institute should notify sponsorship team finance commercial business partners that it is seeking this approval, copy m into relevant approval form when submitted to Cabinet Office. 29

30 APPENDIX 2: Compliance with government-wide corporate guidance instructions The Institute should comply with following general guidance documents instructions: This document; Appropriate adaptations of sections of Corporate Governance in Central Government Departments: Code of Good Practice; Code of Conduct for Board Members of Public Bodies; Code of Practice for Ministerial Appointments to Public Bodies; Code of Practice on Partnerships with Arms-Length Bodies; Managing Public Money (MPM); Government Financial Reporting Manual (FReM); Public Sector Internal Audit Stards; Management of Risk: Principles Concepts ( Orange Book ); The Green Book: Central guidance on appraisal evaluation The Aqua Book: Guidance on producing quality analysis for government DfE Risk Management Policy Guidance; HM Treasury Guidance on Tackling Fraud; Fees Charges Guide, Chapter 6 of MPM; Departmental Banking: A Manual for Government Departments, annex 5.6 of MPM; Relevant Dear Accounting Officer letters; Regularity, Propriety Value for Money The Parliamentary AND Health Service Ombudsman s Principles of Good A dministration; Consolidation Officer Memorum, relevant Dear Consolidation Officer letters; Relevant Freedom of Information Act 2000 guidance instructions (Ministry of Justice); Model Code for Staff of Executive Non-Departmental Public Bodies (Cabinet Office); Or relevant guidance instructions issued by Treasury in respect of Whole of Government Accounts; Or relevant instructions guidance issued by central Departments; Specific instructions guidance issued by DfE; Recommendations made by Public Accounts Committee, or by or Parliamentary authority, that have been accepted by Government relevant to Institute. 30

31 I APPENDIX 3 - Schedule of governance meetings between Department Institute Meeting, Attendees Purpose Reporting Documents & Frequency Monthly Catch-Ups To provide an update against agreed Corporate Report measures to assure current delivery of Sponsorship Team functions Institute CFO To manage escalate risks Corporate Services issues with policy or delivery to Team Projects Quality Board or Apprenticeships Programme Board To discuss possible future changes to policy risks/issues associated with delivery Quarterly Progress To review delivery against core Financial report Meetings functions Institute Balance scorecard ESFA CEO To review current red risks medium corporate report (including Apprenticeships term risks issues, possible assessment of performance; TE SROs mitigations risk; milestone; benefits) Institute Chair To review viability of organisation Meeting specific agenda CEO VfM, staff turn-over/ retention /vacancy filling S Monthly Progress To review delivery against core Financial report Review functions Institute Balance Scorecard Minister, ESFA To review current red risks medium corporate report (including CEO tern risks issues, possible assessment of performance; Apprenticeships mitigations risk; milestone; benefits) TE SHOs To review viability of organisation Meeting specific agenda Institute Chair VfM, staff turn-over/ retention /vacancy CEO filling Annual Stocktake For Institute to report on Draft Institute Annual Report delivery of its functions over past coming year s business Minister, ESFA year, including how it has considered plan (if available) CEO steers from Government set out in Apprenticeships Strategic Guidance. Draft Strategic Guidance (if TE SROs available) To discuss plans for year ahead Institute Chair including Strategic Guidance Institute Balance Scorecard CEO corporate report (including High level assessment of progress assessment of performance; towards achieving benefits risk; milestone; benefits) Meeting specific agenda 31