1. health and fitness

Board Meeting
Meeting Date
Report Title
Paper Number
Report Author
Lead Director
FOI Status
21 April 2015
Establishing HEE as a Non-Departmental Public Body
HEE Apr 15.5
Mike Jones, Head of Governance & Corporate Secretary
Lee Whitehead, Director of People and Communications
Applicable
Report Summary
This paper provides a summary of key governance decisions
required as a consequence of HEE becoming a NonDepartmental Public Body.
Approval
X

To Note

Decision
The Board is asked to approve: core governance documents;
appointment of Local Education and Training Boards as
specified; adoption of existing policies and procedures, and
note: agreed Executive Board membership; and assurance
regarding relevant HR activity.
Purpose
(tick one only)
Recommendation
Strategic
Objective Links
Identified risks
and risk
management
actions
Resource
implications
Support to NHS
Constitution
Legal implications
including equality
and diversity
assessment
HEE’s status change is a legislative requirement.
It is essential that HEE as a new statutory body agrees core
governance measures to regulate its business activities and
ensure probity.
None.
The values of the NHS Constitution are integral to and
underpin all HEE activity.
The Care Act 2014 defines the requirement for HEE to become
a Non-Departmental Public Body.
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Introduction
1. Health Education England (HEE) was originally established as a Special Health
Authority (SpHA) on 28 June 2012. The Care Act 2014, which came into force in
May 2014, stipulates that HEE should be established as an Executive NonDepartmental Public Body (NDPB). Supporting secondary legislation to give
effect to the provisions in the Act was prepared and Statutory Instruments laid in
Parliament in December 2014; with these having passed into law, HEE was
established as a NDPB on 1 April 2015.
2. The HEE Regulations, together with the Commencement Order which gives
effect to the powers in the Care Act 2014, that were laid in December 2014 came
into effect on 1 April 2015 thereby establishing HEE as a NDPB. The following
legislation is relevant and applicable:
•
•
•
The Care Act 2014(Commencement No.3) Order 2014 SI 2014 3186
The Health Education England Regulations 2014 SI 2014 3215
The Health Education England (Transfer of Staff, Property and Liabilities)
Order 2014 SI 2014 3218
3. As a consequence of its new statutory basis, HEE is legally established as a new
body so it is a requirement that the HEE Board (NDPB) must therefore agree its
core governance arrangements as outlined below – even where these
arrangements may be largely unchanged from those that were in place for HEE
as a SpHA.
Executive Board member appointments
4. The Care Act 2014, Schedule 5 – Health Education England, Part 1 –
Constitution, stipulates that the Chair and Non-Executive Directors of HEE are
responsible for appointing the Chief Executive and other Executive Director
members of the HEE Board.
5. Accordingly, the Chair and Non-executive Directors met in their capacity as
statutory Directors of HEE on 1 April 2015 and agreed the following Executive
Director Board membership:
•
•
•
Professor Ian Cumming OBE as Chief Executive;
Steve Clarke as Director of Finance;
Professor Wendy Reid as Director of Education and Quality and Medical
Director;
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•
•
Professor Nicki Latham as Director of Performance and Development; and
Jo Lenaghan as Director of Strategy and Planning
6. In addition, Una O’Brien, Permanent Secretary and Principal Accounting Officer
for the Department of Health, has provided written confirmation of Ian
Cumming’s designation as Accounting Officer for HEE operating as a NDPB (in
succession to his previous fulfillment of the same role for HEE operating as a
Special Health Authority), with effect from 1 April 2015.
Corporate governance policies
7. HEE was originally established as a Special Health Authority (SpHA) on 28 June
2012. This was done using the Secretary of State for Health’s powers as
defined in the NHS Act 2006. HEE as a SpHA ceased to exist on 31 March
2015: HEE as a NDPB came into force the following day.
8. As a new legal entity, the HEE Board requires Standing Orders, a Scheme of
Delegation and Standing Financial Instructions to regulate its decision making,
ensure due process is applied and provide assurance that systems of internal
control are in place.
9. The following documents are appended to this paper as:
Annex A: Standing Orders, including Terms of Reference for Board
committees
Annex B: Standing Financial Instructions: these include updated reference to
EU procurement changes
Annex C: Scheme of Delegation
All documents have been amended to reflect HEE’s new statutory basis
(references to Authority replaced by Body where appropriate), as well as
structural changes resulting from the recent Beyond Transition programme.
10. It is recommended that the HEE Board as successor body corporate approves
these documents.
Declarations of interest
11. HEE Board members have completed revised declarations of interest to reflect
the fact that they are now members of the HEE NDPB Board, rather than the
HEE SpHA Board.
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Appointment of Local Education and Training Boards
12. HEE has 13 Local Education and Training Boards (LETBs), each covering a
specific geographical area. These were originally established as committees of
the HEE SpHA Board. These are known respectively as Health Education (HE);
East of England; East Midlands; West Midlands; Kent, Surrey and Sussex; North
Central and East London; North West London; South London; South West;
Thames Valley; Wessex; North East; North West; and Yorkshire and the
Humber.
13. HEE as a NDPB must appoint LETBs, as defined in the Care Act 2014, Part 3 –
Health, Chapter 1 – HEE, Section 103 (1): LETBs.
14. The HEE Regulations (SI 2014 3215) specify that each LETB must include three
members with clinical expertise as follows:
a. One person with clinical expertise in a profession regulated by the Medical
Act 1983.
b. One person with clinical expertise in a profession regulated by the Nursing
and Midwifery Order 2001
c. One person with clinical expertise in another regulated profession.
15. All LETBs are already compliant with these membership requirements, or
expected to be by 1 July 2015. Where LETB membership is not currently
compliant, HEE will exercise its powers (defined in Care Act 2014, Part 3,
Chapter 1, HEE: 104 (8): LETBs: appointments) by appointing HEE employees
who have the requisite expertise and registration to ensure LETB meetings occur
with adequate clinical representation.
16. On this basis, the HEE Board is asked to agree appointment of its LETBs,
utilising existing authorisation arrangements, until such time as revised
authorisation terms are agreed later in 2015/16.
Policies and procedures
17. As with the corporate governance policies above, HEE as a new legal entity
requires policies and procedures to regulate its activities, business processes
and provide systems of internal control.
18. Policies and procedures used by HEE as a SpHA have been checked and
amended to reflect HEE’s new statutory basis, as well as structural changes
resulting from the recent Beyond Transition programme.
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19. All policies and procedures will remain subject to the usual review cycle to
ensure they remain current, fit for purpose and reflect the latest guidance.
20. It is recommended that the HEE Board formally adopts all the policies and
procedures previously approved and used by HEE as a SpHA.
NDPB status – issues for HEE staff
21. The papers included at Annex D and E sets out the key actions taken to support,
advise and formally consult with staff regarding Health Education England’s
move to Non-Departmental Public Body status with effect from 1 April 2015.
Summary and recommendations
22. The Board is asked to:
• Note agreed Executive Board membership;
• Approve corporate governance documents;
• Agree appointment of LETBs using existing authorisation arrangements
and applying measures to ensure adequate representation of clinical
expertise is in place;
• Adopt existing policies and procedures; and
• Note assurance on handling of HR activity in relation to NDPB change
(Annexes D and E).
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HEE Apr 15.5: Annex A
Standing Orders
Version:
Ratified by:
Date ratified:
Name and Title of
originator/author(s):
Name of responsible Director:
Date issued:
Review date:
Target audience:
Document History:
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Version 4
HEE Board
21 April 2015
Mike Jones, Head of Governance & Corporate
Secretary
Lee Whitehead, Director of People &
Communications
21 April 2015
Annually
HEE Board and Committees
All staff of HEE
V1: HEE Board, June 2012
V2: HEE Board, February 2013
V3: HEE Board, October 2014
V4: HEE Executive Team, April 2015
1
Document Status
This is a controlled document. Whilst this document may be printed, the electronic
version posted on the intranet, and copied to the internet, is the controlled copy. Any
printed copies of this document are not controlled.
As a controlled document, this document should not be saved onto local or network
drives, but should instead always be accessed from the intranet.
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INTRODUCTION
1.1
This document has been developed as part of Health Education England’s
Governance Framework to specify the Body’s ways of working. All Executive
and Non-executive members and all Officers should be aware of this
document and its provisions. Together with documents such as the Health
Education England Standing Financial Instructions and Scheme of
Delegation, they help to regulate the Body’s business affairs and ensure these
are conducted in a proper manner.
1.2
Any issues regarding the interpretation of these Standing Orders should be
checked in the first instance with the Board Secretary.
1.3
Health Education England was originally established as a Special Health
Authority on 28 June 2012 and became a non-departmental public body on 1
April 2015. This latter status was conferred by the provisions of the Care Act
2014 and by secondary legislation made under this Act. As a nondepartmental public body, Health Education England also maintains a
Framework Agreement with the Department of Health; this sets out the key
elements of the working relationship between Health Education England and
the Department of Health, how they will work in partnership and discharge
their accountability responsibilities effectively.
1.4
NHS Governance
1.4.1 In addition, the objectives and requirements of Health Education
England for each financial year are set out in the Secretary of State’s
Mandate to Health Education England.
1.4.2 Other relevant documents include:
• The code of Accountability for NHS Boards
• The code of Conduct for NHS Boards
• The Code of Conduct for NHS Managers
• The Code of Practice on Openness in the NHS
1.4.3 Health Education England also has a statutory duty to promote the
NHS Constitution and its values and this will underpin all its activities.
1.5 Failure to Comply with Standing Orders, Standing Financial Instructions and the
Scheme of Delegation
1.5.1 Failure to comply with the Body’s Standing Orders, Standing Financial
Instructions and the Scheme of Delegation shall be considered a
disciplinary matter.
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1.5.2 If for any reason these documents are not complied with, including the
exercise of powers without proper authority, full details of the noncompliance, including any justification and/or extenuating circumstances
should be reported to the next meeting of the Audit and Risk Committee
for consideration and/or ratification.
1.5.3 All Board members and officers of HEE should report any instance of
non-compliance to the Chief Executive, Director of Finance and the
Board Secretary.
1.5.4 These Standing Orders apply to all staff of Health Education England.
2.
AUTHORITY MEETINGS, QUORUM AND PAPERS
2.1 Frequency of Meetings
2.1.1 The dates of HEE Board meetings will be agreed in advance with the
membership for a rolling period of six months.
2.1.2 It is expected that the HEE Board will meet up to six times each year.
2.2 Quoracy
2.2.1 No business shall be transacted at any meeting unless at least five
members are present, including at least two non-executive members
2.3 HEE Board Meeting Papers
2.3.1 All papers will be concise and clear. Ideally papers will be no longer
than four A4 pages in length and when attached, appendices should be
ideally no longer than four A4 pages.
2.3.2 All papers prepared for meetings of the HEE Board will include a
summary which will be no longer than one A4 page in length. This
summary should include the title of the report, its purpose and the name
of the responsible Executive or Non-Executive Director. It should also
clearly state which is required from the HEE Board and outline the
potential and/or likely implications for the Board’s decision. It will also set
out the paper’s strategic objective links, identified risks, resource and
legal implications and how the paper’s content supports the NHS
Constitution.
3. CONDUCT OF THE MEETINGS
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3.1 Urgent Decisions
3.1.1 In exceptional circumstances where the Chair of the Body authorises
urgent action in respect of a matter on behalf of the Body which would
normally have been considered by the Body itself, such action shall be
reported to the next meeting of the Body.
In dealing with such issues requiring an urgent decision, and if
timescales allow, the Chair may call a meeting of the HEE Board using
video or telephone conferencing facilities. Emails may also be used to
gather views and/or reach a consensus. All such decisions will be ratified
by the Board at its next formal meeting.
3.2 Admission on the Public and the Press
The public and representatives of the press may attend meetings of the Board
held in public, but shall be required to withdraw upon the Board resolving:
‘that representatives of the press, and other members of the public, be
excluded from the whole or part (as relevant) of this meeting, having regard to
the confidential nature of the business to be transacted, publicity on which
would be prejudicial to the public interest’
In accordance with section 1(2) Public Bodies (Admission to Meetings) Act
3.3 Confidential Agenda
The HEE Board will discuss items in confidence that would be exempt under
the Freedom of Information Act 2000. Such items would generally be
considered to be personal and confidential in nature or such that their
disclosure would be prejudicial to the public interest.
Matters to be dealt with by the Board following the exclusion of the public and
press will be confidential to the Board. Members and any officers of Health
Education England in attendance will not share or disclose the content of
papers or discussions from Board sessions held in private unless given
permission to do so by the Board.
3.4 Declaration of Interests
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3.4.1 The NHS Code of Accountability requires Board members to declare
interests that are relevant and material to the NHS Board of which they
are a member. All HEE Board members should declare their interests to
the Chair and the Board Secretary in any matter relating to the Body’s
business at the time that they become aware of a potential conflict. The
Board Secretary will maintain an accurate and up to date register of
those interests.
3.4.2 Members will normally be excluded from relevant discussions after
declaring an interest related to a particular issue(s). The minutes of the
meeting will record any such declaration by a member.
3.4.3 When a member’s interest is not directly associated with the issue under
discussion, but could be construed as having a potential influence on the
outcome of the discussion, owing to the interest, that member will also
be excluded from any relevant discussions.
3.4.4 A register of declared interests will be maintained and published on the
Health Education England website.
3.5
Decision Making
3.5.1 The HEE Board will always seek to make decisions by consensus.
However, the Body recognises the necessity for questions at meetings to
be determined by a majority of votes as necessary.
3.5.2 The nature of a formal vote will be at the discretion of the Chair, and may
be determined by oral expression, a show of hands or a ballot.
3.5.3 If a majority of members present so request, the voting on any question
may be recorded so as to show how each member present voted or did
not vote. Furthermore, if a member so requests, their vote shall be
recorded by name.
3.5.4 In no circumstances may an absent member vote by proxy - absence
being defined as being absent at the time of the vote.
3.5.6 In the case of an equal vote, the Chair shall have a second and casting
vote.
3.5.7 Once the HEE Board has reached a decision, it is expected that all
members will support that decision and its consequences in every
respect.
3.6
Additional Items of Business
3.6.1 It is expected that the Chair will be notified in advance of any items of
other business to be raised for discussion at a meeting of the Board.
Where this is not possible or in exceptional circumstances, items of other
business may be raised by a member at the appropriate point of the
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agenda. Acceptance of items of other business is at the discretion of the
Chair.
4. CHAIR’S RULING
4.1 The decision of the Chair of the meeting on questions of order, relevancy and
regularity, and the Chair’s interpretation of the Body’s Standing Orders and
Matters Reserved shall be final. In this interpretation the Chair shall be advised
by the Chief Executive and Board Secretary.
5. MINUTES AND ACTIONS
5.1 Minutes
5.1.1 The proceedings of each meeting of the HEE Board will be formally
recorded. The Board Secretary will be responsible for the production of
these minutes.
5.1.2 The Chair will be responsible for summarising action points and
decisions after each item of business during the meeting.
5.1.3 Following a meeting of the HEE Board, the Chief Executive will review
the accuracy of the draft minutes with the Board Secretary, prior to
submission to the Chair for approval.
5.1.4 Once reviewed and approved by the Chair, the draft minutes will be
held until the next meeting of the HEE Board.
5.1.5 At the next meeting of the HEE Board, all members will review the
minutes and confirm that they are an accurate record. If any changes
are required, the amendments will be discussed and agreed at the
meeting.
5.1.6 The Chair will sign a copy of the minutes when these have been
agreed as an accurate record of the meeting. These agreed minutes
will represent the official record of the meeting.
5.2 Actions
5.2.1 Actions resulting from HEE Board meetings will be summarised in
tabular form to indicate clearly who is responsible for each action,
together with agreed timescales for completion.
5.2.2 The summary of actions should be circulated with the papers of the next
HEE Board meeting for review.
6. COMMITTEEES
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6.1
Only the HEE Board can establish its own committees.
6.2
HEE Board Committees will adhere – in so far as it is possible - to the same
ways of working as the Board.
6.3
Wherever possible, Committee meetings will be scheduled to take place on
the same day as Board meetings to allow the most efficient use of Nonexecutive Director resource and to allow issues to be brought to the attention
of the HEE Board in a timely fashion.
6.4
The HEE Board will establish Local Education and Training Boards as
Committees of the Board which shall cover the whole of England.
6.5
The HEE Board will establish two further committees:
• the Audit Committee; and
• the Remuneration Committee.
6.6
The HEE Board will confirm Committee membership on an annual basis, or
otherwise, when membership changes are required owing to resignations
from or appointments to the Board.
6.7
The Terms of Reference for HEE Board Committees are attached in
Appendices 1, 2 and 3.
7. COMMUNICATIONS
7.1
General
7.1.1 Copies of the agenda, confirmed minutes and papers for the public,
non-confidential part of HEE Board meetings will be published on the
Body’s website.
7.2
Publication of Expenses
7.2.1 Details of expenses and hospitality declarations by members of the
HEE Board will be published on a regular basis.
8. SUSPENSION OF STANDING ORDERS
8.1 Any part of these Standing Orders may be suspended at any meeting of the HEE
Board, provided members agree, except where this would contravene any
statutory provision or any direction made by the Secretary of State for Health.
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8.2 Any decision to suspend Standing Orders, together with the reasons for doing so,
shall be recorded in the minutes of the relevant HEE Board meeting.
9 VARIATION AND AMENDMENT OF THE WAYS OF WORKING
INCORPORATING STANDING ORDERS
9.1 These Standing Orders can be amended by the HEE Board. Any amendments
must not contravene any applicable statutory provision or other applicable
legislation.
10 CUSTODY OF SEAL AND SEALING OF DOCUMENTS
10.1 The common seal of Health Education England will be kept by the Corporate
Secretary in a secure place
10.2 When it is not necessary for a document to be sealed, this must be
authenticated by the signature of an Executive Board member, and attested by
the Corporate Secretary.
10.3 An entry of every sealing will be recorded and signed by the authenticator and
the Corporate Secretary.
10.4 A report of all sealing will be made to the Board semi-annually. The report will
detail the seal number, the description of the document and the date of sealing.
10.5 Use of the seal should be restricted to those instances where a seal, not a
signature, is specifically required. The Corporate Secretary will obtain appropriate
advice if it is unclear whether the seal must be used.
11. FREQUENCY OF REVIEW
11.1 The body’s Standing Orders will be reviewed annually or as required, pursuant
to relevant legislation or guidance.
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Appendix 1
Remuneration Committee
1.
CONSTITUTION
1.1
Health Education England (the Body) hereby resolves to establish a
Committee to be known as the Remuneration Committee (the Committee).
The Committee is a non-executive committee of the Body’s Board, which
determines its Membership and Terms of Reference.
2.
MEMBERSHIP AND QUORACY
2.1
The Remuneration Committee will consist of the Chairman of the Body and its
Non-executive Directors. The Chair of the Committee shall not be the
Chairman of the Body or the Chair of the Audit & Risk Committee.
2.2
In the absence of the appointed Committee Chair, members may choose one
from their number to chair a quorate meeting to allow scheduled business to
be transacted.
2.3
The Chief Executive may attend to advise the Committee for the purpose of
approval of Directors’ and other staff members’ terms and conditions of
service. The Chief Executive will not attend for discussions about their own
remuneration and terms of service.
3.
ATTENDANCE
3.1
Other Directors may be invited to attend the meeting for the purpose of
providing advice and/or clarification to the Committee.
3.2
A senior Human Resources professional will attend the Committee to provide
expert advice on remuneration.
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3.3
The meeting will be quorate if two of the Non-executive Committee members
are present.
4.
FREQUENCY
4.1
The Committee shall meet up to six times a year. This frequency will be
reviewed regularly, and may be amended to not less than twice annually.
5.
AUTHORITY
5.1
Subject to any restrictions set out in relevant legislation, the Remuneration
Committee is authorised by the Board to determine any matter within its
Terms of Reference. The Committee will take proper account of any relevant
national agreements, e.g. Agenda for Change, and applicable guidance
issued by the Government, the Department of Health and the NHS, in
reaching their determinations. The Committee may seek independent
information that may be required to inform its recommendations.
6.
TERMS OF REFERENCE & FUNCTIONS
6.1
The Remuneration Committee’s primary aim is to approve the appropriate
remuneration and terms of service for the Chief Executive, Directors and other
Very Senior Managers. In addition the Committee will consider some issues in
relation to all staff employed by Health Education England. The Committee
will have delegated powers to act on behalf of the Body within the scope of its
approved Terms of Reference.
6.2
The Committee shall adhere to all relevant laws, regulations and policies in all
respects including (but not limited to) determining levels of remuneration that
are sufficient to attract, retain and motivate Directors and other senior staff
whilst remaining cost effective.
6.3
The Committee’s remit includes:
• With regard to the Chief Executive, Directors and other Very Senior
Managers, all aspects of salary (including any performance-related
elements, such as bonuses).
• Provisions for other benefits, including pensions and cars
• Arrangements for termination of employment and other contractual
terms (decisions requiring dismissal shall be referred to the Board).
• Ensuring that officers are fairly rewarded for their individual contribution
to the Body – having proper regard to the Body’s circumstances and
performance and to the provisions of any national arrangements for such
staff.
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•
•
•
7.
Proper calculation and scrutiny of termination payments, taking account of
such national guidance as is appropriate, advising on and overseeing
appropriate contractual arrangements for such staff. This will apply to all
Health Education England staff.
Proper calculation and scrutiny of any special payments.
Approval of HR policies and procedures for all Health Education
England staff.
REPORTING ARRANGEMENTS AND MECHANISMS
7.1 The Committee will report in writing to the Board following each of its
meetings in the form of a report from the Committee Chair. The actions taken
will be recorded in the Board’s minutes. The Remuneration Committee
minutes will be copied to all members of the Committee.
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Appendix 2
The Audit and Risk Committee
1.
CONSTITUTION
1.1
Health Education England (the Body) hereby establishes a Committee to be
known as the Audit and Risk Committee (the Committee). It is constituted as a
Non-executive Committee of the Body’s Board, which determines its
Membership and Terms of Reference. The Committee is authorised to
investigate any activity within these terms of reference, and can seek any
information from employees of the Body, who then must co-operate with any
such request. The Committee is authorised to seek outside legal or other
independent professional advice and secure the attendance of outsiders with
relevant expertise if considered necessary.
2.
MEMBERSHIP
2.1 The Committee shall consist of not fewer than two Non-executive board
members which will include a Chair appointed by the Secretary of State for
Health. The Authority’s Chair shall not be one of these directors, although
he/she can be required to attend meetings where the issues discussed are
relevant to the whole Board or to the Chair directly. The Committee shall be
quorate providing there are two members present.
2.2 In the absence of the appointed Committee Chair, members may choose one
from their number to chair a quorate meeting to allow scheduled business to
be transacted.
3.
ATTENDANCE
3.1
The Director of Finance, Head of Internal Audit, and appropriate Internal Audit
service provider, and External Audit representatives shall normally attend
meetings. However, at least once a year, the Committee shall meet with the
External and Internal Auditors without any Executive Board member present.
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3.2
The Chief Executive and other Executive Directors may be invited to attend
on occasion, particularly when the Committee is discussing significant matters
relating to risks or operations that are the responsibility of a particular director.
3.3
The Chief Executive shall be invited to attend the meeting that reviews the
Annual Governance Statement to discuss the process for assurance that
supports the Statement.
3.4
The Head of Internal Audit, and External Audit Director, shall have direct
access, where required, to members of the Committee on matters arising
from, or relevant to, the Committee.
4.
FREQUENCY
4.1
Meetings shall be held as required and not fewer than four times in one
financial year. The Director of Finance, Head of Internal Audit, or External
Auditor may request a meeting if they consider that one is necessary.
5.
DUTIES
5.1
The Committee shall undertake the following duties:
5.1.1 Governance, Risk Management and Internal Control
Provide the Body’s Board with an independent and objective review of the
adequacy and effectiveness of the Body’s Assurance Framework (the
framework of governance, risks, controls and related assurances). In
particular it will review:
a.
b.
c.
d.
e.
all risk and control related disclosure statements (in particular the
Annual Governance Statement) together with the accompanying Head
of Internal Audit opinion and external audit opinion;
the underlying assurance process that governs the management of
principal risks and the achievement of corporate objectives;
the appropriateness of policies and procedures for ensuring
compliance with law, guidance and codes of conduct, and their
effectiveness.
policies and procedures related to the detection and prevention of fraud
and corruption
consider other topics as requested by the Board
5.1.2 Internal Audit
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a.
Provide assurance to the Board that an effective internal audit function
is established at an appropriate fee that meets mandatory Internal Audit
Standards and provides appropriate independent assurance to the
Committee.
b.
Review and approve the internal audit strategy, operational plan, and
more detailed programme, and ensure co-ordination between the
internal and external auditors to optimise audit resources.
c.
Review the status of Internal Audit reports and their recommendations,
including the delivery of agreed management actions.
d.
Ensure that the Internal Audit function is adequately resourced and has
appropriate standing within the organisation.
5.1.3
External Audit
a.
Discuss and agree the External Audit strategy and operational plan with
the External Auditor before the commencement of the audit and ensure
co-ordination with other external auditors in the national health
economy.
b.
Review External Audit reports, including annual management letters
and management responses.
5.1.4
a.
Finance
Review the Annual Report and Financial Statements before submission
to the Board, challenging assumptions and judgements made during
their compilation, and focusing particularly on:
Changes in, and compliance with, accounting policies and practices;
Unadjusted misstatements in the financial statements;
Major judgemental areas; and
significant adjustments resulting from the audit.
b.
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Consider the context of any report involving the Body issued by the
Public Accounts Committee or the Comptroller and Auditor General
and review the proposed management response before presentation
to the Board for agreement.
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c.
Review schedules of losses and compensation.
6.
REPORTING ARRANGEMENTS AND MECHANISMS
6.1
The Committee meetings shall be formally recorded and the minutes
submitted to the Board.
6.2
The Committee shall undertake an annual review of its own
effectiveness. The Committee shall submit an annual report of its
work to the Board.
6.3
The Head of Internal Audit shall submit a report annually also.
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Appendix 3
Local Education and Training Boards
1.
CONSTITUTION
1.1
Health Education England (the Body) is required to establish Committees to
be known as Local Education and Training Boards (LETBs) to cover a specific
geographical area. These are constituted as Committees of the Body’s Board.
1.2
The terms of reference and membership for each LETB will be approved by
the Health Education England Board.
2.
MEMBERSHIP
2.1
The LETBs shall consist of a Chair appointed by the Body’s board. The LETB
Chair will not be a person who provides health services, or education
or training for health care workers or those wishing to work as health care
workers, in the area for which the LETB is appointed. The other members of
the LETB will be determined in line with authorisation criteria agreed by the
Body’s Board and relevant legislation from representatives of local providers
of NHS commissioned services.
3.
PURPOSE
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Identify and agree local priorities for education and training to ensure security
of supply of the skills and people providing health and public health services;
Plan and commission education and training on behalf of the local health
community in the interests of sustainable, high quality service provision and
health improvement;
Be a forum for developing the whole health and public
health workforce.
provide local financial governance assurance and have
responsibility for the efficient use of the LETB Budget within
Developing people
for health and
healthcare
17
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4.
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the agreed HEE financial framework
drive improvements in quality and safety
FUNCTIONS
Bring together all healthcare and public health employers providing NHS
funded services with education providers, the professions, local government
and the research sector, to develop a skills and development strategy for the
local health workforce that meets employer requirements and responds to the
plans of commissioners;
Engage with patients, local communities, and staff to ensure the local skills
and development strategy is responsive to their views;
Aggregate workforce data and plans for the local health economy to improve
local workforce planning;
Propose Education and Training Plan within the available resources set out in
the annual budget;
Commission education and training to deliver the local skills
and development strategy and national priorities set out in
the Health Education England Mandate, Business Plan and
Workforce Plan for England;
Ensure value for money throughout the commissioning of education and
training and for running costs;
Secure the quality of education and training programmes in accordance with
the requirements of professional regulators and the Health Education England
Mandate, Business Plan and Workforce Plan for England;;
Take a multi-professional approach in planning and developing the healthcare
and public health workforce and in commissioning education and training;
Support access to continuing professional development and employer-led
systems for the whole health and public health workforce;
Work in partnership with universities, clinical academics, other education
providers and those investing in research and innovation;
Work with local authorities and health and well-being boards in taking a
joined-up approach across the local health, public health and social care
workforce;
Work as part of HEE to develop national strategy and
priorities.
5. REPORTING ARRANGEMENTS AND MECHANISMS
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LETB meetings will be formally recorded
Each LETB will review its own effectiveness and submit a report of its
work annually to the Health Education England Board, and to relevant
LETB stakeholders
Developing people
for health and
healthcare
18
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Each LETB will report to the Health Education England Board in
accordance with the relevant LETB agreement as determined by the
Board
Developing people
for health and
healthcare
19
April 2015 Version 1
HEE Apr 15.5: Annex B
Health Education England
STANDING FINANCIAL
INSTRUCTIONS
Paper HEE 2b
INDEX
Section
Page
1
Introduction
3
2
Preparation, approval and control of the business plan, budgets and estimates
9
3
Annual accounts
11
4
Banking arrangements
12
5
Capital investment, asset register and security of assets
13
6
Security of cash, cheques and other negotiable instruments
17
7
Payment of staff
18
8
Payment of accounts
20
9
Tendering and quotations
22
10 Contracting and purchasing
33
11 Information technology
34
12 Information governance
34
13 Internal audit
36
14 Losses and special payments
38
15 Counter fraud investigation and security management
39
16 External audit
39
17 Risk management
40
18 Retention of documents
41
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1.
INTRODUCTION
1.1
General
1.1.1
These Standing Financial Instructions (SFIs) are issued in accordance
with the Financial Directions issued by the Secretary of State for
Health under the provisions of Section 99 (3), 97 (A) (4) and (7) and
97 (AA) of the National Health Service Act 1977 for the regulation of
the conduct of the Body in relation to all financial matters. They shall
have effect as if incorporated in the Standing Orders (SOs) of the
Body. These SFIs refer to the financial transactions of Health
Education England (HEE) only.
1.1.2
In accordance with HSG (96)12, these Standing Financial Instructions
detail the financial responsibilities, policies and procedures adopted
by the Body. They are designed to ensure that the Body’s financial
transactions are carried out in accordance with the law and
Government policy in order to achieve probity, accuracy, economy,
efficiency and effectiveness. They should be used in conjunction with
the Scheme of Delegation which includes the Reservation of Powers
to the Body.
1.1.3
These Standing Financial Instructions identify the financial
responsibilities that apply to everyone working for the Body. The user
of these Standing Financial Instructions must also take into account
relevant prevailing Department of Health and/or Treasury instructions.
The Director of Finance must approve all financial procedures.
1.1.4
Should any difficulties arise regarding the interpretation or application
of any of the Standing Financial Instructions, the advice of the Director
of Finance must be sought before acting. The user of these
Standing Financial Instructions should also be familiar with and
comply with the Body’s Standing Orders.
1.1.5
Failure to comply with Standing Financial Instructions and
Standing Orders can in certain circumstances be regarded as a
disciplinary matter that could result in dismissal.
1.1.6
If for any reason these Standing Financial Instructions are not
complied with, full details of the non-compliance and any justification
for non-compliance shall be reported to the next formal meeting of the
Audit Committee for referring action or ratification. All members of the
Board, and all staff, have a duty to disclose any non-compliance with
these Standing Financial Instructions to the Director of Finance as
soon as possible.
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1.1.7 Wherever the title Chief Executive, Director of Finance, or other
nominated officer is used in these instructions, it shall be deemed to
include such other directors or employees who have been duly
authorised to represent them, except in respect of Banking
Arrangements (See Section 4).
1.1.8
Any expression to which a meaning is given in the Health Service Act
or in the Financial Directions made under the Act shall have the same
meaning in these instructions; and
i)
"Body" means the Health Education England
ii)
"Budget" means an amount of resources expressed in financial
terms proposed by the Body for the purpose of carrying out over a
specific period all or part of the functions of the Body.
iii) "Budget Holder" means the individual with delegated Body to
manage finances (Income & Expenditure) for a specific area of the
organisation.
iv) "Budget Manager" refers to those officers who are required to
manage budgets on behalf of the respective Budget Holder
v)
"Chief Executive" means the Chief Officer of the Body (who is
directly accountable to the Body).
vi) “Accounting Officer” means the officer responsible and
accountable for funds entrusted to the Body. He/she shall be
responsible for ensuring the proper stewardship of public funds
and assets. The Accounting Officer for Health Education England
is the Chief Executive.
vii) “Director of Finance” means the chief financial officer of the Body.
viii) “Board” means the Chair, Non Executive Directors and Executive
Directors of Health Education England collectively as a body.
ix) “Leadership Team” is the senior management team of Health
Education England as designated by the Chief Executive.
x)
"Officer" means employee of the Body or any other person holding
a paid appointment or office with the Body.
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1.2
Responsibilities and delegation
1.2.1
The Board
1.2.1.1
The Board exercises financial supervision and control by:
i) formulating the financial strategy
ii) requiring the submission and approval of budgets within
allocations
iii)
defining and approving essential features of financial
arrangements in respect of important procedures and
financial systems, including the need to obtain value for
money
iv) defining specific responsibilities placed on members of the
Board and officers as indicated in the Scheme of
Delegation document
1.2.2
1.2.1.2
The Body has resolved that certain powers and decisions
may only be exercised by the Board. These are set out in the
Scheme of Delegation.
1.2.1.3
The Board shall delegate executive responsibility for the
performance of its functions to the Chief Executive who shall
retain overall responsibility for all its activities.
The Chief Executive
1.2.2.1
Within the Instructions it is acknowledged that the Chief
Executive, as Accounting Officer, will have ultimate
responsibility for ensuring that the Body meets its obligation
to perform its functions within the financial resources made
available to it. The Chief Executive has overall executive
responsibility for the Body's activities and is responsible to
the Board for ensuring that it stays within its resource and
cash limits.
1.2.2.2
The Chief Executive will delegate detailed responsibility for
financial activities and controls to the Director of Finance but
retain overall accountability. The extent of such delegation
will be determined in the Body’s Scheme of Delegation and
should be kept under review by the Board.
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1.2.3
1.2.2.3
The Chief Executive, through the Director of Finance, shall be
responsible for the implementation of the Body's financial
policies and for co-ordinating any corrective action necessary
to further these policies.
1.2.2.4
It shall be the responsibility of the Chief Executive to ensure
that existing staff and all new employees are notified of their
responsibilities within these instructions, and in particular
policy in relation to potential corruption and the acceptance of
gifts and hospitality. The general principle is that all staff and
members of the Board must be, and must be seen to be, fair,
impartial and unbiased at all times. The offer or receipt of any
gift and hospitality can create actual or perceived conflicts of
interest, but at the same time refusal could cause
embarrassment or unintentional offence. The offer of a gift or
favour, or any exceptionally generous hospitality should be
treated with caution.
1.2.2.5
In addition to the above, Budget Holders, Budget Managers
and staff who are involved in dealing directly with
contractors/suppliers are also required to sign a document
confirming that they have read and understood the Standing
Financial Instructions and Standing Orders.
The Director of Finance
1.2.3.1 The Director of Finance is responsible for:
i) Implementing the Body’s financial policies and for coordinating any corrective action necessary to further these
policies
ii) Maintaining an effective system of financial control
including ensuring that detailed financial procedures and
systems incorporating the principles of separation of duties
and internal checks are prepared, documented and
maintained to supplement these instructions
iii) Ensuring that sufficient records are maintained to show and
explain the Body’s transactions, in order to disclose, with
reasonable accuracy, the financial position of the Body at
any time.
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1.2.3.2
Without prejudice to any other functions of the Body, and
employees of the Body, the duties of Director of Finance shall
include:
i) The provision of financial advice to the Body and its
employees;
ii) The design, implementation and supervision of systems of
internal financial control; and
iii) The preparation and maintenance of such accounts,
certificates, estimates, records and reports as the Body
may require for the purpose of carrying out its statutory
duties.
1.2.4
1.2.3.3
The Director of Finance shall require, in relation to any officer
who carries out a financial function, that the form in which the
records are kept and the manner in which the officers
discharge their duties shall be to his/her satisfaction.
1.2.3.4
The Director of Finance will ensure money drawn from the
Department of Health against cash limited and non cash
limited funds is required for approved expenditure only, and is
drawn only at the time of need.
Board Members and Employees
1.2.4.1
All members of the Board and employees, severally and
collectively, are responsible for:
i) The security of the property of the Body
ii) Avoiding loss
iii) Exercising economy and efficiency in the use of resources
iv) Conforming with the requirements of Standing Orders,
Standing Financial Instructions, Scheme of Delegation and
Financial Procedures. It shall be the duty of any officer
having evidence of, or reason to, suspect financial or other
irregularities or impropriety in relation to these regulations
to report these suspicions to the Director of Finance. The
Director of Finance will consider the suspicions to
determine if the case should be referred to the Local
Counter Fraud Specialist. A detailed investigation should
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not be conducted as this may compromise
investigation by the Local Counter Fraud Specialist.
1.2.5
1.2.6
any
Contracts, Contractors and their employees
1.2.5.1
Directors responsible for arranging contracts for the provision
of items and/or services shall ensure that those contracts are
correctly monitored and governed within the contract's terms
and conditions.
1.2.5.2
Any contractor or employee of a contractor who is
empowered by the Body to commit the Body to expenditure
or who is authorised to obtain income shall be covered by
these instructions. It is the responsibility of the Chief
Executive to ensure that such persons are made aware of
this.
Audit Committee
1.2.6.1
In accordance with Standing Orders (and as set out in
guidance issued by the Department of Health under EL(94)
40), the Body shall establish an Audit Committee. The terms
of reference of the Audit Committee shall be drawn up and
approved by the Board, and are incorporated in the Standing
Orders. The Audit Committee will provide an independent
and objective view of internal control by overseeing internal
and external audit services; reviewing financial systems,
ensuring compliance with Standing Orders and Standing
Financial Instructions; reviewing schedules of losses and
compensations and making recommendations to the Board.
1.2.6.2
Where the Audit Committee considers there is evidence of
ultra vires transactions, evidence of improper acts, or if there
are other important matters that the Committee wish to raise,
the Chairman of the Audit Committee should raise the matter
in the first instance with the Director of Finance and the Chief
Executive. If the matter has still not been resolved to the
Audit Committee's satisfaction, then the matter will be raised
at a full meeting of the Board.
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2.
PREPARATION, APPROVAL & CONTROL OF THE BUSINESS
PLAN, BUDGETS & ESTIMATES
2.1
The Body has a responsibility to prepare and submit financial plans in
accordance with the requirements of the Department of Health or
appropriate body. It shall perform its functions within the total of funds
allocated or approved by the Secretary of State for Health allowing for
any planned changes in working balances during the year. All plans,
financial approvals and control systems shall be designed to meet this
obligation.
2.2
The Director of Finance shall ensure that the financial details contained
within the service agreements of contracts entered into by the Body are
consistent with the requirement to balance income and expenditure;
and they shall ensure that adequate statistical and financial systems
are in place to facilitate the compilation of estimates, forecasts and
investigations as may be required from time to time.
2.3
The Chief Executive will compile and submit to the Body an annual
business plan which takes into account financial targets and forecast
limits of available resources. The annual business plan will contain a
statement of the significant assumptions on which the plan is based
and details of major changes in workload, delivery of services or
resources required to achieve the plan.
2.4
The Director of Finance shall, in consultation with Budget Holders and
Budget Managers, compile such financial estimates and forecasts, on
both revenue and capital accounts, as may be required from time to
time by the Body.
2.5
The Director of Finance will ensure that money drawn from the
Department of Health against the resource and cash limit is required
for approved expenditure only, and is drawn only at the time of need in
line with the Department of Health’s timetable.
2.6
The Director of Finance shall, on behalf of the Chief Executive, prepare
and submit budgets within the limits of available funds to the Body for
its approval prior to the commencement of each financial year.
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2.7
The Director of Finance must review the basis and assumptions used
to prepare the budget and advise the Body that, to the best of the
Director of Finance’s knowledge and understanding, they are realistic.
As a consequence the Director of Finance shall have right of access to
all Budget Holders on budgetary related matters. Such budgets should
relate to income and expenditure in that year and shall have supporting
statements in order to explain any matter material to the understanding
of those budgets, covering all revenue and capital items. Alterations to
budgets may be requested in line with guidance issued by the Director
of Finance.
2.8
The Director of Finance shall monitor financial performance against
budgets and business plans, periodically review them and report to the
Body on the Body’s position against these targets. All budget holders
and managers must provide information as required by the Director of
Finance to enable budgets to be compiled and monitoring reports to be
prepared.
2.9
The Director of Finance shall be responsible for ensuring that an
adequate system of monitoring financial performance is in place to
enable the Body to fulfil its statutory responsibility to meet its Annual
Revenue and Capital Resource Limits.
2.10
The Director of Finance will devise and maintain systems of budgetary
control. These will include:
i. regular financial reports to the Board in a form approved by
the Board
ii. the issue of timely, accurate and comprehensible advice
and financial reports to each Budget Holder, covering the
areas for which they are responsible
iii. investigation and reporting of variances from financial,
workload and manpower budgets
iv. monitoring of management action to correct variances
v. arrangements for the authorisation of budget transfers.
2.11
The Director of Finance shall devise and maintain adequate systems to
ensure that the Body can identify, implement and monitor opportunities
for inclusion within Cost Improvement and Income Generation
Programmes.
2.12
The Chief Executive may, in line with the Scheme of Delegation,
delegate responsibility for a budget or a part of a budget to operational
managers to permit the performance of defined activities. The terms of
delegation shall include a clear definition of individual and group
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responsibilities for control of expenditure, exercise of virement,
achievement of planned levels of service and the provision of regular
reports upon the discharge of these delegated functions to the Chief
Executive.
2.13
Each Budget Holder is responsible for ensuring that:
i)
any likely overspending or reduction of income which cannot be
met by virement is not incurred without the prior consent of the
Board;
ii)
the amount provided in the approved budget is not used in whole
or in part for any purpose other than that specifically authorised
subject to the rules of virement;
iii) no permanent employees are appointed without the approval of the
Chief Executive other than those provided for within the available
resources and manpower establishment as approved by the
Board.
2.14
Except where otherwise approved by the Chief Executive, taking
account of advice from the Director of Finance, budgets shall be used
only for the purpose for which they were provided and any budgeted
funds not required for their designated purposes shall revert to the
immediate control of the Chief Executive.
2.15
Expenditure for which no provision has been made in an approved
budget shall be incurred only after authorisation by the Chief Executive
or the Body.
2.16
The Director of Finance shall keep the Chief Executive informed of the
financial consequences of changes in policy, pay awards and other
events and trends affecting budgets and shall advise on the financial
and economic aspects of future plans and projects.
2.17
The Chief Executive is responsible for ensuring that the appropriate
financial monitoring forms are submitted to the requisite monitoring
organisation.
3.
ANNUAL REPORT AND ACCOUNTS
3.1
The Director of Finance, on behalf of the Chief Executive and the Body,
shall prepare, and submit the Annual Report and accounts, certified by
the Accounting Officer, to the Secretary of State for Health in respect of
each financial year in such a form as the Secretary of State for Health
may with the approval of the Treasury direct (NHS Act 2006).
3.2
The annual report and accounts and financial returns shall be prepared
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in accordance with the guidance given by the Department of Health,
the Treasury, and the Body’s accounting policies. The Annual Report
and accounts shall be laid before Parliament, in accordance with the
Accounts Directions and the timetable prescribed by the Department of
Health.
4.
BANKING ARRANGEMENTS
4.1
The Director of Finance is responsible for managing the Body’s
banking arrangements and for advising the Board on the provision of
banking services and operation of accounts. This advice will take into
account guidance issued by DH and Managing Public Money published
by HM Treasury. This guidance recommends only using commercial
accounts where the required services are not provided by the
Government Banking Service (GBS) or where better value for money
for the Exchequer overall can be demonstrated.
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4.2
The Board shall approve the banking arrangements.
4.3
The Director of Finance is responsible for:
i) commercial and GBS accounts
ii) establishing separate bank accounts for non-discretionary funds
iii) ensuring payments made from commercial and GBS accounts do
not exceed the amount credited to the account except where
arrangements have been made
iv) monitoring compliance with DH guidance on the level of cleared
funds in commercial accounts.
4.4
The Director of Finance will prepare detailed instructions on the
operation of commercial bank and GBS accounts which must include:
i)
ii)
the conditions under which each account is operated;
those allowed to authorise both manual and electronic banking
transactions and instructions.
4.5
The Director of Finance must advise the Body’s bankers in writing of
the conditions under which each account will be operated.
4.6
The Director of Finance should review the banking needs of the Body
at regular intervals to ensure that they reflect current business
patterns and represent best value for money. Following such reviews,
the Director of Finance shall determine whether or not a tender
exercise for services is necessary.
4.7
Tender exercises should be undertaken when demanded by changed
circumstances, or at intervals normally not exceeding five years from
a previous tender exercise. The Director of Finance shall report the
outcome of the tendering exercise to the Body.
5.
CAPITAL INVESTMENT, ASSET REGISTER AND SECURITY OF
ASSETS
5.1
Capital Investment
5.1.1
The Chief Executive shall ensure that there is an adequate appraisal
process in place for determining capital expenditure priorities and the
effect of each proposal on strategic plans. He is responsible for the
management of all stages of capital schemes and for ensuring that
schemes are delivered on time and to cost. The Chief Executive shall
ensure that capital investment is not undertaken without confirmation
of the availability of resources to finance both the capital spend and
any revenue consequences including capital charges.
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5.1.2
For all capital expenditure proposals the Chief Executive shall ensure
that a business case is produced in line with guidance issued by the
Director of Finance, setting out an option appraisal of potential
benefits compared with known costs to determine the option with the
highest ratio of benefits to cost and appropriate project management
and control arrangements. The Director of Finance shall certify the
costs and revenue consequences of each business case.
5.1.3
The Chief Executive will ensure that all business cases for capital
expenditure are approved in line with the DH delegated limits as
set out in the Scheme of Delegation.
5.1.4
The approval of a capital scheme shall not constitute approval for
expenditure on any scheme. Procurement procedures as contained
elsewhere in these SFIs shall be followed for all capital expenditure.
5.1.5
The Director of Finance shall issue procedures for the regular reporting
of expenditure and commitment against authorised expenditure.
5.1.6
The Chief Executive is responsible for the issue to an officer of the
Body specific Body to commit expenditure, Body to proceed to a tender
and approval to accept a successful tender.
5.1.7
The Director of Finance shall issue procedures governing the financial
management, including variations to contract, of capital investment
projects and valuation for accounting purposes.
5.2
Asset Registers
5.2.1
The Chief Executive is responsible for the maintenance of both the
Register of Assets and the Register of Inventory Items, taking account
of the advice of the Director of Finance concerning the form and the
method of updating the registers.
5.2.2
Each employee has a responsibility to exercise a duty of care over the
assets of the Body and it shall be the responsibility of senior staff in all
disciplines to apply appropriate routine security practices in relation to
NHS assets. A substantial or persistent breach of agreed security
practices shall be reported to the Corporate Secretary, who shall then
refer the matter to the Director of Finance, who will determine the
necessary action, including reference to the Local Security
Management Specialist for investigation
5.2.3
The Chief Executive shall define the items of equipment which shall be
recorded on either the Capital Asset Register or the Inventory Register.
The Capital Accounting Manual, as issued by the Department of
Health, will be considered when determining the minimum data set for
the Capital Asset Register.
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5.2.4
Additions to the fixed Asset Register must be clearly identified to an
appropriate Budget Holder and be validated by reference to properly
authorised and approved agreements, architects’ certificates, suppliers’
invoices and other documentary evidence in respect of purchases from
third parties; requisitions and wages records for own materials and
labour including appropriate overheads.
5.2.5
Where capital assets are sold, scrapped, lost or otherwise disposed
of, their value must be removed from the accounting records and
each disposal must be validated by reference to authorisation
documents and invoices.
5.2.6
The Director of Finance shall approve procedures for reconciling
balances on fixed asset accounts in ledgers against balances on
Fixed Asset Registers.
5.2.7
Land and buildings shall be held at current values with a full
professional valuation carried out at least every five years. Other
assets will be held at depreciated/amortised historical cost as a
proxy for current value. This is in accordance with the Body’s
accounting policies which comply with the Financial Reporting
Manual (FReM) issued by HM Treasury.
5.2.8
The value of each asset shall be depreciated using methods and
rates as specified in the Body’s accounting policies which comply
with the FReM. Estimated useful lives and depreciation rates of
assets will be reviewed on an annual basis.
5.2.9
The Director of Finance shall calculate and account for capital
charges as specified in the FReM.
5.2.10 Budget Holders will ensure that the respective Asset Register for
their areas will be physically checked annually.
5.2.11 The Asset Register and the Inventory Register shall also record
items which are transferred from one part of the Body to another. It is
the responsibility of the Budget Managers to inform the Director of
Finance of these changes.
5.2.12 The Director of Finance shall maintain an up to date register of
properties owned or leased by the Body. This should include details
of location, tenancy (where appropriate), and custody of the deeds
and lease documents.
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5.3
Security of Assets
5.3.1
Asset control procedures (including fixed assets, cash, cheques and
negotiable instruments, and also including donated assets) must be
approved by the Director of Finance. This procedure shall make
provision for:
i)
recording managerial responsibility for each asset;
ii)
identification of additions and disposals;
iii) identification of all repairs and maintenance expenses;
iv) physical security of assets;
v)
periodic verification of the existence of, condition of, and title to,
assets recorded;
vi) identification and reporting of all costs associated with the
retention of an asset;
vii) reporting, recording and safekeeping of cash, cheques, and
negotiable instruments.
5.3.2
All discrepancies revealed by verification of physical assets to fixed
asset register shall be notified to the Director of Finance.
5.3.3
Whilst each employee and officer has a responsibility for the security
of property of the Body, it is the responsibility of Board members and
senior employees in all disciplines to apply such appropriate routine
security practices in relation to NHS property as may be determined
by the Board. Any breach of agreed security practices must be
reported in accordance with agreed procedures.
5.3.4
Any damage to the Body's premises, vehicles and equipment or any
loss of equipment or supplies shall be reported by staff in
accordance with the agreed procedure for reporting losses.
5.3.5
Where practical, assets should be marked as Health Education
England property.
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6. SECURITY OF CASH, CHEQUES AND OTHER NEGOTIABLE
INSTRUMENTS
6.1
All receipt books, tickets, agreement forms, or other means of
officially acknowledging or recording amounts received or receivable,
shall be in a form approved by the Director of Finance. Such
stationery shall be ordered and controlled by the Director of Finance
and subject to the same precautions as are applied to cash.
6.2
All officers whose duty it is to collect or hold cash shall be provided
with a lockable cash box which will normally be deposited in a safe.
The officer concerned shall hold only one key and all duplicates shall
be lodged with the Body's bankers or such other officer authorised by
the Director of Finance, and suitable receipts obtained. The loss of
any key shall be reported immediately to the Director of Finance. The
Director of Finance shall, on receipt of a satisfactory explanation,
authorise the release of the duplicate key. All new safe keys will be
despatched directly to the Director of Finance from the
manufacturers. The Director of Finance shall be responsible for
maintaining a register of authorised holders of safe keys.
6.3
All cash, cheques, postal orders and other forms of payment
received by an officer shall be entered immediately in an approved
form of register.
6.4
Official money shall not under any circumstances be used for the
encashment of private cheques.
6.5
The holders of safe keys shall not accept unofficial funds for depositing
in their safes unless such deposits are in special sealed envelopes or
locked containers. It shall be made clear to the depositors that the
Body is not to be held liable for any loss, and written indemnities must
be obtained from the organisation or individuals absolving the Body
from responsibility for any loss.
6.6
During the absence (e.g. on holiday) of the holder of a safe or cash box
key, the acting officer shall be subject to the same controls as the
normal holder of the key. There shall be written discharge for the safe
and/or cash box contents on the transfer of responsibilities and the
discharge document must be retained for inspection.
6.7
All unused cheques and other orders shall be subject to the same
security precautions as are applied to cash; bulk stocks of cheques
shall normally be retained by the Body's bankers and released by them
only against a requisition signed by the Director of Finance.
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6.8
A Cheque Register shall be kept in which all cheque stocks ordered,
received and issued shall be recorded and signed for by nominated
officer(s). A separate register is to be kept of payable orders.
6.9
Any loss or shortfall of cash, cheques, or other negotiable instruments,
however occasioned, shall be reported immediately in accordance with
the agreed procedure for reporting losses. (See Section 17 - Losses
and Special Payments).
6.10
Income systems
6.10.1 The Director of Finance is responsible for designing, maintaining and
ensuring compliance with systems for the proper recording, invoicing,
collection and coding of all monies due.
6.10.2 The Director of Finance is responsible for the prompt banking of all
monies received.
6.10.3 The arrangements for income matters dealt with by third parties will be
incorporated in the Service Level Agreements
6.11
Fees and Charges
6.11.1 The Body shall follow the Managing Public Money guidance in setting
fees for services
6.11.2 The Director of Finance is responsible for approving and regularly
reviewing the level of all fees and charges other than those determined
by the Department of Health or Statute. Independent professional
advice on matters of valuation shall be taken as necessary.
6.11.3 All employees must inform the Director of Finance promptly of money
due arising from transactions which they initiate/deal with.
6.11.4 Any income generated from the activities of staff working their
employment hours, and /or utilising any of the Body’s facilities shall be
declared as the Body’s Exchequer income and dealt with in accordance
with the Body’s official income systems and controls and any other
relevant aspects of an employee’s terms and conditions of employment.
6.12
Debt Recovery
6.12.1 The Director of Finance is responsible for the appropriate recover action
on all outstanding debts and where undertaken by a third party, specify
the appropriate recovery action in the Service Level Agreement
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6.12.2 Income not received should be dealt with in accordance with the losses
procedure and where appropriate be reported to the Audit Committee.
6.12.3 Systems and processes should reduce any risk of overpayments and
enable any overpayment to be detected and recovery initiated.
7.
PAYMENT OF STAFF
7.1
Funded Establishment
7.1.1
The workforce plans incorporated within the annual budget will form
the funded establishment. The funded establishment of any budget
holder may not be varied without the approval of the Chief Executive.
7.2
Staff appointments
7.2.1
No Director or employee may engage, re-engage or re-grade
employees, either on a permanent or temporary nature, or hire agency
staff, or agree to changes in any aspect of remuneration unless:
a)
authorised to do so by the Chief Executive or their nominee; and
under these proposals is,
b)
within the limit of the Director's approved budget,
funded establishment, and agreed staffing
number.
7.2.2
The Body will approve procedures presented by the Chief Executive for
the determination of commencing pay rates, conditions of service etc.
for employees.
7.3
Processing Payroll
7.3.1
The Director of Finance is responsible for:
i)
specifying timetables for submission of properly authorised time
records and other notifications
ii) final determination of pay
iii) making payment on agreed dates
iv) agreeing methods of payment
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7.3.2
The Director of Finance will issue instructions regarding:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
7.3.3
verification and documentation of data
timetable for receipt and preparation of payroll data and the
payment of employees
maintenance of subsidiary records for superannuation, income
tax, social security and other authorised deductions from pay
security and confidentiality of payroll information
checks to be applied to completed payroll before and after
payment
Body to release payroll data under the provisions of the Data
Protection Act
methods of payments available to various categories of
employees and officers
procedures for payment by cheque or bank credit
procedures for the recall of cheques and bank credits
pay advances and their recovery
maintenance of regular and independent reconciliation of pay
control accounts
separation of duties of preparing records and inputs and
verifying outputs and payments
system to ensure the recovery from leavers of sums of money
and property due by them to the Body
Appropriately nominated managers have delegated responsibility for:
i)
submitting time records, and other notifications in accordance
with agreed timetables
ii)
completing time records and other notifications in accordance
with the Director of Finance’s instructions and in the form
prescribed by the Director of Finance
iii) submitting termination forms in the prescribed form immediately
upon knowing the effective date of an employee’s resignation,
termination or retirement. Where an employee fails to report for
duty in circumstances that suggest they have left without notice,
the Director of Finance must be informed immediately.
7.3.4
Regardless of the arrangements for providing the payroll service, the
Director of Finance shall ensure that the chosen method is supported
by appropriate (contracted) terms and conditions, adequate internal
controls and audit and review procedures, and that suitable
arrangements are made for the collection of payroll deductions and
payment of these to appropriate bodies.
7.3.5
All employees shall be paid by bank credit transfer, unless otherwise
agreed by the Director of Finance.
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7.4
Contracts of Employment
7.4.1
The Body shall delegate responsibility to the Chief Executive or their
nominee for ensuring that all employees are issued with a Contract
of Employment in a form approved by the Body and which complies
with employment legislation and dealing with variations to or
termination of contracts of employment.
1.
PAYMENT OF ACCOUNTS
8.1
The Director of Finance shall be responsible for the prompt payment
of accounts and claims. The term "payment" includes any
arrangements established to settle payments upon a non-cash basis.
Payment of contract invoices shall be in accordance with contract
terms. All payments shall comply with the Government's policy on
prompt payment.
8.2
All authorised officers shall inform the Director of Finance promptly of
all money payable by the Body arising from transactions which they
initiate, including contracts, leases, tenancy agreements and other
transactions. To assist financial control, the Director of Finance will
maintain a register of regular payments.
8.3
The Director of Finance shall be responsible for maintaining a
system for the verification, recording and payment of all accounts
payable by the Body. This system will incorporate an approved
officers’ signatory list of the Budget Holders, Budget Managers and
their deputies who are authorised to certify the following:
8.3.1
Goods have been duly received, examined, are in accordance with
specification and order, are satisfactory and that the prices are
correct (see exception 8.3.7).
8.3.2
Work done or services rendered have been satisfactorily carried out
in accordance with the order; that, where applicable, the materials
used were of the requisite standard and that the charges are correct.
8.3.3
In the case of contracts based on the measurement of time,
materials or expenses, the time charged is in accordance with the
time sheets, that the rates of labour are in accordance with
appropriate rates, that the materials have been checked with regard
to quantity, quality and price and that the charges for the use of
vehicles, plant and machinery have been examined.
8.3.4
Where appropriate, the expenditure is in accordance with regulations
and that all necessary authorisations have been obtained. Any over
payments in the course of business transactions should be pursued
irrespective of cause.
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8.3.5
The account is arithmetically correct; and
8.3.6
The account is in order for payment.
8.3.7
Appropriate prepayments will be permitted for instances relating to
payments for rent, maintenance contracts and in those instances,
where, as standard business practice demands, nominal prepayments
are required (i.e. training, publications). Prepayments which fall outside
the above categories are only permitted where exceptional
circumstances apply. In such instances:
i)
the appropriate Director must provide, in the form of a written
report, a case setting out all relevant circumstances of the
purchase. The report must set out the effects on the Body if the
supplier is at some time during the course of the prepayment
agreement unable to meet their commitments
ii)
the Director of Finance will need to be satisfied with the proposed
arrangements before contractual arrangements proceed
iii) the Budget Holder is responsible for ensuring that all items due
under a prepayment contract are received and must immediately
inform the appropriate Director or Chief Executive if problems are
encountered.
8.4
Where an officer certifying accounts relies upon other officers to do
preliminary checking, wherever possible, the officer certifying accounts
will ensure that those who check delivery or execution of work, act
independently of those who have placed orders and negotiated prices
and terms.
8.5
In the case of contracts which require payment to be made on account,
during progress of the works, the Director of Finance shall make
payment on receipt of a certificate from the appropriate qualified officer
or outside consultant. Without prejudice to the responsibility of any
consultant, a contractor's account shall be subjected to such financial
examination by the Director of Finance and such general examination
by appropriately qualified officers as may be considered necessary,
before the person responsible to the Body for the contract, issues the
final certificate.
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8.7
The Director of Finance shall ensure that payment for goods and
services is made only when the goods and services have been properly
received.
9.
TENDERING AND QUOTATIONS
9.1
Introduction
9.1.1
Directives by the Council of the European Union prescribing procedures
and UK rules on public procurement for the awarding of contracts for
building and engineering works and for the supply of goods, materials
and manufactured articles and services shall have effect as if
incorporated in these Standing Financial Instructions. Detailed
procurement procedures and best practice guidance can be found in the
Body’s procurement manual.
9.1.2
These tendering rules cover the procedures to be used when the Body
obtains goods, services or works from a third party external to the Body.
9.1.3
The purpose of the tendering rules are to ensure that best value
arrangements are secured for the Body, to ensure that statutory provision
is applied and to protect the Body from allegations of unfair practice or
fraud.
9.1.4
EU and UK public procurement policy require that the Body promotes fair
competition amongst potential suppliers and is open and transparent in
dealings with suppliers and potential suppliers.
9.1.5
The authorisation limits for approval of new expenditure or extensions to
current business are found in the HEE Scheme of Delegation.
These limits are to be used after following the appropriate procurement
procedures, which include DH and Cabinet Office procurement guidance
which where specific will take precedence over any more general rule.
9.1.6 Competition requirements for contracts below £20,000
9.1.6.1 For contracts where the estimated expenditure or income does not for its
whole life, or is not reasonable expected to, exceed £20,000 the most
efficient method of procurement should be selected, which demonstrates
value for money, keeping a written record of the reason and action taken.
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9.1.6.2 Procurement should be carried out in accordance with Standing Orders
and DH Guidance.
9.1.6.3 The limits quoted in paragraph 9.1.6.1 should be inclusive of VAT where
VAT is not recoverable.
9.1.7 Competition requirements for contracts above £20,000
9.1.7.1 For contracts with whole life costs between £20,000 and £50,000 a
minimum of three competitive written quotations should be obtained,
except where the procurement relates to professional/consultancy
services. . (see Delegations assigned to HEE 2014).
9.1.7.2 Formal tendering procedures must be applied where the estimated whole
life cost exceeds £50,000.
9.1.7.3 When assessing the potential value of a contract the whole life costs of the
contract should be considered. The cumulative costs of a service with
contractors must also be taken into account assessing what competition
requirements are needed.
9.1.7.4 For contracts valued over £50,000, the Director of Finance may give
permission for procurement to take place without a tender process for the
reasons provided in 9.5.2 below.
9.1.7.5 The limits of £20,000 and £50,000 quoted in paragraph 9.1.7.1, 2 and 4
should be inclusive of VAT where VAT is not recoverable.
9.1.8 Official Journal of the European Union (OJEU)
9.1.8.1 Current regulations require the advertisement of opportunities in OJEU, if
applicable. As the limits and rules change so often confirmation must be
sought from contracting/procurement function so that actions are
compliant with legislation.
9.2
9.2.1
Professional Services (including Consultancy)
Any requirement for professional services, including extensions and
renewals of existing arrangements, must be deemed as an ‘operational
necessity’ and have the prior approval of the Director of Finance.
9.3 Aggregation
9.3.1
Under EU law, the value of a contract must be estimated by reference to
the contractually committed spend over the life of the contract. This is the
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annual value of the contract multiplied by the number of years in the
contract, including all extensions, options, variations and start up costs.
9.3.2
Where the duration of the contract is not determined, its value must be
calculated as the estimated annual value of the contract multiplied by
four.
9.3.3
The Body must package a contract with regard to similar contracts which
may be required in order to aggregate requirements.
9.3.4
A proposed contract may not be divided into smaller contracts in order to
avoid the provisions of these procurement rules or of EU law.
Formal Competitive Tendering
9.4
General Applicability
9.4.1 The Body shall ensure that competitive tenders are invited for: the supply
of goods, materials and manufactured articles; the tendering of services
including all forms of management consultancy services (other than
specialised services sought from or provided by the DH);
9.5
Exceptions and instances where formal tendering need not be applied
9.5.1 Formal tendering procedures need not be applied where:
i) the estimated expenditure or income does not, or is not reasonably
expected to, exceed £50,000 inclusive of non-recoverable VAT; or
for services such as education and training classified under the light
touch regime(amounts to be reviewed annually)
ii) where the supply is proposed under special arrangements
negotiated by the DH in which event the said special arrangements
must be complied with;
iii) regarding disposals as set out in SFI no. 15;
9.5.2
Formal tendering procedures may be waived in the following
circumstances:
i) in very exceptional circumstances where the Chief Executive or
Director of Finance decides that formal tendering procedures would
not be practicable or the estimated expenditure or income would not
warrant formal tendering procedures, and the circumstances are
detailed in an appropriate Body record;
ii) where the requirement is covered by an existing contract;
Crown
Commercial
iii) where
Department
of
Health/
Service/Procurement Partners agreements are in place and have
been approved by the Board;
iv) where a consortium arrangement is in place and a lead organisation
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has been appointed to carry out tendering activity on behalf of the
consortium members;
v) where the timescale genuinely precludes competitive tendering but
failure to plan the work properly would not be regarded as a
justification for a single tender;
vi) where specialist expertise is required and is available from only one
source;
vii) when the task is essential to complete the project, and arises as a
consequence of a recently completed assignment and engaging
different consultants for the new task would be inappropriate;
viii) there is a clear benefit to be gained from maintaining continuity with
an earlier project. However in such cases the benefits of such
continuity must outweigh any potential financial advantage to be
gained by competitive tendering;
ix) for the provision of legal advice and services providing that any legal
firm or partnership commissioned by the Body is regulated by the
Law Society for England and Wales for the conduct of their business
(or by the Bar Council for England and Wales in relation to the
obtaining of Counsel’s opinion) and are generally recognised as
having sufficient expertise in the area of work for which they are
commissioned.
x) The Director of Finance will ensure that any fees paid are reasonable
and within commonly accepted rates for the costing of such work.
xi)
xii) the waiving of competitive tendering procedures should not be used
to avoid competition or for administrative convenience or to award
further work to a consultant originally appointed through a
competitive procedure.
xiii) where it is decided that competitive tendering is not applicable and
should be waived, the fact of the waiver and the reasons should be
documented and recorded in an appropriate Body record and
reported to the Audit Committee at each meeting.
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9.5.3 Fair and Adequate Competition
9.5.3.1
Where the exceptions set out in SFI no. 9.5.2 apply, the Body shall
ensure that invitations to tender are sent to a sufficient number of
firms/individuals to provide fair and adequate competition as
appropriate, and in no case less than three firms/individuals, having
regard to their capacity to supply the goods or materials or to
undertake the services or works required.
9.5.4 Approved Firms
9.5.4.1
The Body shall ensure that the firms/individuals invited to tender
(and where appropriate, quote) are among those on approved lists.
Where in the opinion of the Director of Finance it is desirable to seek
tenders from firms not on the approved lists, the reason shall be
recorded in writing to the Chief Executive. (See SFI no. 9.6.8 List of
Approved Firms).
9.5.4.2
Items which subsequently breach thresholds after original approval
Items estimated to be below the limits set in this Standing Financial
Instruction for which formal tendering procedures are not used
which subsequently prove to have a value above such limits shall
be reported to the Chief Executive, and be recorded in an
appropriate Body record.
9.6 Contracting/Tendering Procedure
9.6.1 Invitation to tender
i) All invitations to tender shall state the date and time as being the
latest time for the receipt of tenders.
ii) Every tender for goods, materials, services or disposals shall
embody such of the NHS Standard Contract Conditions as are
applicable.
iii) Tenders are to be requested in electronic form, refer to 9.6.3
9.6.3 Opening tenders and Register of tenders
Health Education England (HEE) will use an electronic tendering (e-tendering)
package either provided by one of its procurement partners or its own system
for the receipt and opening of tenders
Invitation to tender
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.
Invitations to tender will be made by the electronic portal. Tenders and
forthcoming opportunities will be advertised on the Contracts Finder site, and
all suppliers will have to pre-qualify prior to the issue of any tender. All
invitations to tender on a formal competitive basis shall state that no tender will
be considered for acceptance unless submitted using this facility.
Receipt of tenders
.
.
.
Tenders will be received in a locked electronic tender vault and the date and
time of all tenders is stored electronically.
The vault cannot be opened until the published date and time has passed.
Access to the vault is restricted to a named individual (the verifier) who will be
granted the appropriate access rights to open the vault. All activities have an
associated audit trail which to the HEE’s Internal Audit Department will have
access.
Verifiers
.
.
.
.
A list of staff eligible to act as verifiers will be drawn up by the Chief Executive
and / or the Director of Finance
When issuing a tender, the Procurement Partner team member will nominate
another team member within Supplies or Executive Support (depending on
delegated limits (see section 13) as verifier for that tender.
System controls for a tender will be set to ensure that only the named verifier
will be allowed to open the vault for the tender in question.
Body to delegate the opening of the vault to another eligible member of staff
lies with the verifier; this may occur in advance of any planned absence on the
part of the nominated verifier.
In the event of any unplanned absence on the part of the nominated verifier,
the Head of Supplies will contact the supplier of the hosted environment and
request a change to the verifier. This will create an audit trail.
Under no circumstances can the verifier or ‘delegated’ verifier be the same
person who issued the tender.
.
In line with many other Public Sector organisations, verifiers will be appointed
on the following basis:
Non OJEU Tenders - £20,000 to £111,676: The verifier will be a member of the
purchasing management team but not the member who issued the tender.
OJEU Tenders – In excess of £111,676: The verifier will be the Executive
Support Manager or a named representative identified on the list of eligible
verifiers.
.
Opening of Formal Tenders
As soon as possible after the date and time stated as being the latest time for
the receipt of tenders, the verifier shall open the vault.
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The opened tender must be accepted by the verifier before being passed to
the relevant member of the purchasing management team for further work.
No documentation can be altered once opened.
Admissibility of Formal Tenders
The date and time of the receipt is stored electronically and any tenders
received after the specified date and time may be accepted or rejected at the
discretion of the verifier.
Late tenders can only be accepted if the vault has not already been opened.
Once the vault is open, the facility allowing suppliers to submit tenders is
deactivated preventing the submission of any late tenders.
(viii) Incomplete tenders, i.e. those from which information necessary for
the adjudication of the tender is missing, and amended tenders i.e.,
those amended by the tenderer upon his own initiative either orally or
in writing after the due time for receipt, but prior to the opening of
other tenders, should be dealt with in the same way as late tenders.
(Standing Order No. 9.6.5) below).
9.6.4 Admissibility
i) If for any reason the designated officers are of the opinion that the
tenders received are not strictly competitive (for example, because
their numbers are insufficient or any are amended, incomplete or
qualified) no contract shall be awarded without the approval of the
Chief Executive.
ii) Where only one tender is sought and/or received, the Chief
Executive and Director of Finance shall, as far practicable, ensure
that the price to be paid is fair and reasonable and will ensure value
for money for the Body.
9.6.5 Late tenders
i) Tenders received after the due time and date, but prior to the
opening of the other tenders, may be considered only if the Chief
Executive or his nominated officer decides that there are exceptional
circumstances i.e. despatched in good time but delayed through no
fault of the tenderer.
ii) Only in the most exceptional circumstances will a tender be
considered which is received after the opening of the other tenders
and only then if the tenders that have been duly opened have not left
the custody of the Chief Executive or his nominated officer or if the
process of evaluation and adjudication has not started.
iii) While decisions as to the admissibility of late, incomplete or
amended tenders are under consideration, the tender documents
shall be kept strictly confidential, recorded, and held in safe custody
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by the Chief Executive or his nominated officer.
9.6.6 Acceptance of formal tenders (See overlap with SFI No. 9.7)
i) Any discussions with a tenderer which are deemed necessary to
clarify technical aspects of his tender before the award of a contract
will not disqualify the tender.
ii) The lowest tender, if payment is to be made by the Body, or the
highest, if payment is to be received by the Body, shall be accepted
unless there are good and sufficient reasons to the contrary. Such
reasons shall be set out in either the contract file, or other
appropriate record.
iii) It is accepted that for professional services such as management
consultancy, the lowest price does not always represent the best
value for money. Other factors affecting the success of a project
include:
(a) experience and qualifications of team members;
(b) understanding of client’s needs;
(c) feasibility and credibility of proposed approach;
(d) ability to complete the project on time.
iv) No tender shall be accepted which will commit expenditure in excess
of that which has been allocated by the Body and which is not in
accordance with these Instructions except with the authorisation of
the Chief Executive.
v) The use of these procedures must demonstrate that the award of the
contract was:
a) not in excess of the going market rate / price current at
the time the contract was awarded;
(b) that best value for money was achieved.
vi) All Tenders should be treated as confidential and should be
retained for inspection.
9.6.7 Tender reports to the Body Board
i) Reports to the Body Board will be made on an exceptional
circumstance basis only.
9.6.8 List of Approved Firms (See SFI no. 9.5.4)
(a) Responsibility for maintaining list
A manager nominated by the Chief Executive shall on behalf of the Body
maintain lists of approved firms from who tenders and quotations may be
invited. These shall be kept under frequent review. The lists shall include
all firms who have applied for permission to tender and as to whose
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technical and financial competence the Body is satisfied. All suppliers
must be made aware of the Body’s terms and conditions of contract.
(b) Where other factors are taken into account in selecting a tenderer,
these must be clearly recorded and documented in the contract file, and
the reason(s) for not accepting the lowest tender clearly stated.
(c) Financial Standing and Technical Competence of Contractors
The Director of Finance may make or institute any enquiries he deems
appropriate concerning the financial standing and financial suitability of
approved contractors.
9.6.9 Exceptions to using approved contractors
If in the opinion of the Chief Executive and the Director of Finance it is
impractical to use a potential contractor from the list of approved
firms/individuals (for example where specialist services or skills are
required and there are insufficient suitable potential contractors on the
list), or where a list for whatever reason has not been prepared, the Chief
Executive should ensure that appropriate checks are carried out as to the
technical and financial capability of those firms that are invited to tender
or quote.
An appropriate record in the contract file should be made of the reasons
for inviting a tender or quote other than from an approved list.
9.7 Quotations: Competitive and non-competitive
9.7.1 General Position on quotations
Quotations are required where formal tendering procedures are not adopted
and where the intended expenditure or income exceeds, or is reasonably
expected to exceed amounts as laid down in the Body’s Scheme of
Reservation and Delegation.
9.7.2 Competitive Quotations
i) Quotations should be obtained from at least 3 firms/individuals based
on specifications or terms of reference prepared by, or on behalf of,
the Body in accordance with the Body’s Scheme of Reservation and
Delegation.
ii) Quotations should be in writing/electronic format unless the Chief
Executive or his nominated officer determines that it is impractical to
do so in which case quotations may be obtained by telephone.
Confirmation of telephone quotations should be obtained as soon as
possible and the reasons why the telephone quotation was obtained
should be set out in a permanent record. All quotations should be
treated as confidential and should be retained for inspection.
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iii) The Chief Executive or his nominated officer should evaluate the
quotation and select the quote which gives the best value for money.
If this is not the lowest quotation if payment is to be made by the
Body, or the highest if payment is to be received by the Body, then
the choice made and the reasons why should be recorded in a
permanent record.
9.7.4 Quotations to be within Financial Limits
9.7.4.1 No quotation shall be accepted which will commit expenditure in excess of
that which has been allocated by the Body and which is not in accordance with
Standing Financial Instructions except with the authorisation of either the Chief
Executive or Director of Finance.
9.8 Authorisation of Tenders and Competitive Quotations
9.8.1 Providing all the conditions and circumstances set out in these
Standing Financial Instructions have been fully complied with, formal
authorisation and awarding of a contract may be decided by staff to
the value of the contract in accordance with the individual limits as laid
down in the Body’s Scheme of Reservation and Delegation.
9.8.2 Formal authorisation must be put in writing. In the case of
authorisation by the Body Board this shall be recorded in their
minutes.
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10.
CONTRACTING AND PURCHASING
10.1
All goods and services, or works shall be ordered on an official order
except works and services executed in accordance with a contract.
10.2
Official orders shall be consecutively numbered, in a form approved by
the Director of Finance and shall include such information concerning
prices or costs as required. The order shall incorporate an obligation on
the supplier/contractor to comply with the Body's or other relevant
Terms and Conditions of Purchase (such as Government Procurement
Service).
10.3
Requisitions shall be approved only by officers authorised by the Chief
Executive. The list of authorised officers shall be maintained for
management control purposes by the Director of Finance.
10.4
Details of all orders placed should be available to the Director of
Finance either in paper form or accessible through a computerised
purchase ledger system.
10.5
The Director of Finance should ensure that appropriate delegation
arrangements are in existence to ensure that no order is issued for any
item for which there is no budget provision. In exceptional
circumstances, senior officers, acting only on the express approval of
the Chief Executive, may issue an order where there is no budget
provision.
10.6
Orders shall not be placed in a manner devised to avoid the financial
limits specified by the Body.
10.7
No order shall be issued for any item or items for which an offer of gifts,
reward or benefit has been made to staff. All gifts and hospitality shall
be recorded in a register of Gifts and Hospitality.
10.8
Goods are not to be taken on trial or loan in circumstances that could
commit the Body to a future uncompetitive price.
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11.
INFORMATION TECHNOLOGY
11.1
General
11.1.1 In order to ensure compatibility and compliance with the Body's
Computing Strategy, no computer hardware, software or facility will be
procured without the authorisation of an officer specifically appointed
by the Chief Executive.
11.2
Finance
11.2.1 The Director of Finance shall ensure that adequate controls exist such
that the finance computer operation is separated from development,
maintenance and amendment.
11.2.2 The Director of Finance and an officer specifically appointed by the
Chief Executive shall ensure that an adequate management (audit) trail
exists through the computerised finance system.
11.2.3 The Director of Finance shall satisfy himself that new financial systems
and amendments to current financial systems are developed in a
controlled manner and thoroughly tested prior to implementation.
12
INFORMATION GOVERNANCE
12.1
The Chief Executive shall be responsible for ensuring that the Body
has notified with the Information Commissioner’s Office for compliance
with the Data Protection Act 1998 and shall ensure that information is
published and maintained in accordance with the requirements of the
Freedom of Information Act 2000 (FOI).
12.2
The Director of Finance shall be primarily responsible for the accuracy
and security of the computerised financial data of the Body in
accordance with security retention and Data Protection policies as
defined by the officer designated for this purpose by the Chief
Executive.
12.3
An officer specifically appointed by the Chief Executive shall devise
and implement any necessary procedures to ensure adequate
protection of the Body's manual and computer data, programs and
hardware for which the Chief Executive is responsible, from accidental
or intentional disclosure to unauthorised persons, deletion or
modification, theft or damage, having due regard for the Data
Protection Acts and any defined NHS-wide security requirements.
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12.4
An officer specifically appointed by the Chief Executive shall ensure
that adequate controls exist over data entry, processing, storage,
transmission and output to ensure security, privacy, accuracy,
completeness, and timeliness of all Body financial systems and data as
well as the efficient and effective operation of the system.
12.5
The Director of Finance shall ensure that contracts for computing
services for financial applications with another agency shall clearly
define the responsibility of all parties for the security, privacy, accuracy,
completeness, and timeliness of data during processing transmission
and storage. The contract should also ensure rights of access for audit
purposes.
12.6
Where another agency provides a computer service for financial
applications, the Director of Finance shall periodically seek assurances
that adequate controls as outlined in 12.3, 12.4 and 12.5 above are in
operation.
12.7
The Director of Finance and an officer specifically appointed by the
Chief Executive shall ensure that adequate controls exist to maintain
the security, privacy, accuracy and completeness of financial data sent
over transmission networks.
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Paper HEE 2b
13.
INTERNAL AUDIT
13.1
The Chief Executive shall be responsible for ensuring that there are
arrangements to measure, evaluate and report on the adequacy and
effectiveness of internal control and efficient use of resources by the
establishment of an adequate Internal Audit Service headed by the
Director of Finance. The service shall be provided either by staff
employed by the Body and/or through a service procured from an
outside agency. Any staffing within the Internal Audit Service or
agencies employed shall be of sufficient quality and quantity to
achieve mandatory audit standards. Any third party contracts will be
awarded after a tender process as per the Contracting and
Purchasing rules contained within these SFIs.
13.2
The Body shall appoint a Head of Internal Audit who will have overall
responsibility for the internal audit function whether provided directly
by the Body or procured through other organisations.
13.3
The terms of reference of the Internal Audit Service are to review,
appraise and report to management upon:
• the soundness, adequacy and application of financial and other
management controls.
• the extent of compliance with, relevance and financial effect of,
established policies, plans and procedures.
• the extent to which the Body's assets and interests are
accounted for and safeguarded from losses of all kinds arising
from:
a)
b)
Criminal offences
Waste, extravagance and inefficient administration, poor
value for money or other cause.
• the suitability and reliability of financial and other management
data developed within the organisation
• the adequacy of follow-up action to Audit reports.
13.4
Management's responsibility is to establish systems of internal
control for all operations, both computerised and manual, for which it
is responsible to ensure that these are properly run.
13.5
Internal Audit's basic objective is, therefore, to assist the various
levels of management in discharging their duties and responsibilities
by carrying out appraisals and making the necessary appropriate
recommendations to management for operations under its control.
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Paper HEE 2b
13.6
The Head of Internal Audit shall prepare and submit to the Audit
Committee Strategic Audit Plans to indicate the extent of audit
cover proposed and to demonstrate the ability of the anticipated
audit resource to address the Body's internal audit need.
13.7
The Head of Internal Audit shall report annually to the Audit
Committee on the extent of audit cover achieved, providing a
summary of audit activity during the report period, detailing the
degree of achievement of the approved plan, a clear opinion on the
effectiveness of internal control in accordance with current
assurance framework guidance and details of any major internal
control weaknesses discovered.
13.8
Internal Audit shall be entitled, without necessarily giving prior notice,
to require and receive:
• access to all records, documents and correspondence relating
to any financial or other relevant transactions, including
documents of a confidential nature (in which case, the Director
of Finance shall have a duty to safeguard the confidentiality),
• access at all reasonable times to any land, premises or
employee of the Body,
• the production or identification by any employee of any Body
cash, stores or other property under the employee's control,
• explanations concerning any matter under investigation or
review.
13.9
Where a matter arises which involves, or is thought to involve,
irregularities concerning cash, stores or other property of the Body,
or any suspected irregularity in the exercise of any function of a
pecuniary nature, the Director of Finance shall be notified
immediately.
13.10
The Director of Finance via Internal Audit
Counter Fraud Specialist, shall investigate
misappropriation or other irregularities
necessary, with relevant Managers and
Police where appropriate.
13.11
The Director of Finance shall report directly to the Chief Executive
and shall refer audit reports to the appropriate designated officers.
Failure to take remedial action within a reasonable period shall be
reported to the responsible Manager. Where, in exceptional
circumstances, the use of normal reporting channels could be seen
and the appointed Local
cases within the Body of
in conjunction, where
in consultation with the
Page 38 of 43
Paper HEE 2b
as a possible limitation on the objectivity of the audit, Internal Audit
shall have access to report directly to the Chief Executive, the Chair
of the Body or the Chair of the Audit Committee.
14.
14.1
14.2
LOSSES AND SPECIAL PAYMENTS
The Director of Finance shall prepare procedural instructions on the
recording of and accounting for losses and special payments.
14.3
Any employee discovering or suspecting a loss of any kind must
immediately inform their respective Director, who must
immediately inform the Chief Executive and the Director of
Finance. Where a criminal offence is suspected, the Director of
Finance must immediately inform the police. In cases of fraud and
corruption or of anomalies which may indicate fraud or corruption,
the Director of Finance must inform the relevant Local Counter
Fraud Specialist and both Internal and External Auditors. The
Director of Finance will provide the Treasury with details of all
novel or unusual frauds or attempted frauds.
14.4
For losses apparently caused by theft, arson, neglect of duty or
gross carelessness, except those which are of a trivial nature the
Chief Executive will immediately notify:
i)
The Board
ii)
The External Auditor
14.5
Within the limits delegated to it by the Department of Health, the
Body shall delegate its responsibility to approve losses and
authorise special payments to the Chief Executive and Director of
Finance acting jointly.
14.6
No losses or special payments exceeding the delegated limits
shall be made without prior Department of Health approval.
14.7
The Director of Finance shall be authorised to take any necessary
steps to safeguard the Body's interest in bankruptcies and
company liquidations.
14.8
For any loss, the Director of Finance should consider whether any
insurance claim can be made.
14.9
The Director of Finance shall maintain a losses and special
payments register in which write off action is recorded.
14.10
All losses and special payments must be reported to the Audit
Committee on a regular basis.
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Paper HEE 2b
15.
COUNTER FRAUD INVESTIGATION AND SECURITY
MANAGEMENT
15.1 Counter Fraud Investigation
15.1.1 In line with the responsibilities as set out in the Secretary of State's
Directions on Fraud and Corruption, the Body's Chief Executive
and Director of Finance shall monitor and ensure compliance with:
i)
the requirement to have in place a Local Counter Fraud
Specialist (LCFS), reporting to an officer delegated by the
Chief Executive and working with staff in the Counter Fraud
and Security Management
Service in accordance with the NHS Counter Fraud and
Corruption Manual.
ii)
the protocol governing the Body’s assistance to the Counter
Fraud and Security Management Service.
15.1.2 The Local Counter Fraud Specialist will provide a written report, at
least annually, on counter fraud work within the Body.
15.2
Security Management
15.2.1 In line with their responsibilities, the Chief Executive will monitor and
ensure compliance with Directions issued by the Secretary of State
for Health on NHS security management.
15.2.2 The Body shall nominate a suitable person to carry out the duties of
the Local Security Management Specialist (LSMS) as specified by
the Secretary of State for Health guidance on NHS security
management.
16.
EXTERNAL AUDIT
16.1
The external audit of Health Education England is undertaken by the
National Audit Office, whose powers are conferred under the
National Health Service Act 1977.
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Paper HEE 2b
16.2
The National Audit Office’s powers to obtain documents and
information were consolidated in the NAO Act 1983. This legislation
provides that the Comptroller and Auditor General shall have a right
of access at all reasonable times to all such documents as he may
reasonably require for carrying out examination and shall be entitled
to require from any person holding or accountable for any such
document such information and explanation as are reasonably
necessary for that purpose.
16.3
These rights of access extend to the annual audit of all systems,
establishments and processes associated with the NHS CBA's
functions.
17.
RISK MANAGEMENT
17.1
The Chief Executive shall ensure that the Body has a programme of
risk management, in accordance with current Department of Health
assurance framework requirements, which shall be approved and
monitored by the Audit Committee.
17.2
The programme of risk management shall include:
i. A process for identifying and quantifying risks and
potential liabilities;
ii. Engendering among all levels of staff a positive
attitude towards the control of risk;
iii. Management processes to ensure that all significant
risks and potential liabilities are addressed including
effective systems of internal control and decisions on
the acceptable level of retained risk;
iv. Contingency plans to offset the impact of adverse
events;
v. Audit arrangements including internal audit and
health and safety reviews
vi. Arrangements to review the risk management
programme.
17.3
The existence, integration and evaluation of the above elements will
assist in providing a basis to make a statement on the effectiveness
of internal control within the Annual Report and Accounts as required
by the Department of Health.
17.4
The Director of Finance shall ensure that insurance arrangements
exist in accordance with the risk management programme and shall
demonstrate value for money for any insurance obtained.
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Paper HEE 2b
18.
RETENTION OF NHS DOCUMENTS
18.1
The Chief Executive shall be responsible for maintaining archives for
all documents required to be retained in accordance with
Department of Health guidelines.
18.2
The documents held in archive shall be capable of retrieval by
persons authorised by the Director of Finance.
18.3
Documents held in accordance with Department of Health guidance
shall only be destroyed at the express instigation of the Chief
Executive. Records shall be maintained of all documents so
destroyed.
Page 42 of 43
Paper HEE 2b
Page 43 of 43
HEE Apr 15.5: Annex C
Health Education England
SCHEME OF DELEGATION
This document provides reference to areas of delegated responsibility as defined
in Board’s Standing Orders and Standing Financial Instructions.
The following abbreviations are used throughout:
Chief Executive (CE)
Director of Finance (DF)
Corporate Secretary (CS)
Head of Internal Audit (HIA)
Audit Committee (AC)
HEE (Body)
SCHEME OF DELEGATION IMPLIED BY WAYS OF WORKING
(STANDING ORDERS)
SO ref
3.1
3.3
Delegated to Powers delegated
Chair
Urgent decisions on behalf of Body (subject to report at
next meeting).
Corporate
Maintain a register of members’ interests in any matter
Secretary
relating to the Body.
3.4.2
3.4.5
Chair
Chair
4
Chair
5.1.1
5.1.2
Corporate
Secretary
Chair
Determine the nature of a formal vote.
Cast a second and deciding vote in the case of an equal
vote.
The decision of the Chair on order, relevancy and regularity
and interpretation of Ways of Working (Standing Orders)
shall be final as advised by the CE and CS.
Responsible for formally recording meetings
5.1.3
5.1.4
5.1.6
CE
Chair
Chair
Responsible for summarising action points and decisions
during the meeting.
Review draft Board minutes
Approve Board minutes
Sign the minutes at the following meeting creating an official
record of the meeting
SCHEME OF DELEGATION IMPLIED BY STANDING
FINANCIAL INSTRUCTIONS
SFI ref
1.2.2.1
Delegated to
CE
1.2.2.2
DF
1.2.2.3
CE and DF
1.2.2.4
1.2.3.1
1.2.3.2
1.2.3.2
CE
DF
DF
DF
Powers delegated
Overall executive responsibility for Body’s activities and
meeting resource and cash limits
CE to delegate detailed responsibility for financial activities
and controls to DF
Responsible for the implementation of the Body’s financial
policies and for co-ordinating any corrective action
necessary to further these policies
Staff to be notified of SFI responsibilities
Approve all financial procedures
Provision of financial advice to members and staff
Design, implementation and supervision of systems of
internal financial control
1.2.3.2
1.2.3.4
DF
DF
1.2.4.1
1.2.4.1
Board,
members
and
employees
Any officer
1.2.4.1
DF
1.2.5.1
Directors
1.2.5.2
CE
1.2.6.1
1.2.6.2
AC
AC Chair
2.1
DF
2.2
DF
2.3
2.4-2.11
CE
DF
2.12-2.15
2.16
CE
DF
2.17
3
4.1-4.7
5.1.1
CE
DF
CE and DF
CE
5.1.2
CE
5.1.2
DF
5.1.5
DF
5.1.6
CE
5.1.7
5.2.1
5.2.2
DF
CE and DF
DF
5.2.3
CE
5.2.6
DF
Maintenance of proper accounting records
Ensure cash is drawn for approved expenditure only and
only at the time of need
Responsible for the security of the Body’s property;
avoiding loss; exercising economy and efficiency in the use
of resources; conforming with SOs, SFIs, Scheme of
Delegation and Financial Procedures
Report any irregularities or impropriety relating to these
regulations to the Director of Finance
Consider any such suspicions to determine if the case
should be referred to the Local Counter Fraud Specialist
Directors responsible for arranging contracts shall ensure
that those contracts are correctly monitored and governed
Ensure that contractors who are empowered by the Body to
commit the Body to expenditure are aware that they
are covered by the SFIs
Provide an independent and objective view of internal control
Report evidence of ultra vires transactions, evidence of
improper acts or other important matters to the DF and CE.
If the matter is not resolved the matter will be raised at a full
meeting of the Board
Prepare and submit financial plans in accordance with DH
requirements
Ensure that financial details contained within service
agreements of contracts are consistent with the requirement
to balance income and expenditure
Compile and submit annual business plan to Body and
DH
Compile financial estimates, forecasts and monitor spending
and report on exceptions
Establish delegated budgeting control framework
Inform CE of financial consequence of change in policy, pay
awards and other events affecting budgets and advise on the
financial and economic aspects of future plans and projects
Ensure appropriate financial monitoring forms are submitted
Preparation of annual accounts
Overall banking arrangements
Ensure adequate appraisal process in place for determining
capital expenditure priorities
Ensure that a business case is produced in line with
guidance
Certify the costs and revenue consequences of businesses
cases
Issue procedures for the regular reporting of expenditure and
commitment against authorised expenditure
Authorise an officer of the Body to commit expenditure,
proceed to a competitive offer and approval to accept a
successful competitive offer
Issue procedures governing financial management
Maintain Asset Register and Register of Inventory Items
Determine necessary action in the case of persistent breach
of agreed security practices
Define the items of equipment to be recorded on either the
Capital Asset Register or Inventory Register
Approve procedures for reconciling balances on fixed asset
3
5.2.9
5.2.12
5.3.1
6
7.1.1
7.3
7.4.1
DF
DF
DF
DF
CE
DF
CE
8
10
10.6
10.7
DF
DF
CE
CE
11.1
CE
12.2
DF
12.3
CE
12.4
CE
12.5
DF
12.6
DF
12.7
DF
13.1
13.2-13.8
13.10
13.11
14
15.1
CE
HIA
DF
DF
DF
CE and DF
17.1
CE
17.4
DF
18.1
CE
18.2
DF
accounts against fixed asset registers
Calculate and account for capital charges
Maintain register of properties owned or leased by Body
Approve asset control procedures
Cash and cheque security arrangements
Approve changes to funded establishment where necessary
Arrangements for payment of staff
Ensure all employees are issued with a contract of
employment
Payment of accounts arrangements
Contracting and purchasing arrangements
Approve orders for which there is not budget provision
Ensure arrangements are in place to maintain a register of
Gifts and Hospitality
Ensure Body is registered for compliance with Data
Protection Act and that a Freedom of Information
Publication
Scheme is published and maintained
Ensure the accuracy and security of computerised financial
data is in accordance with security retention and Data
Protection policies
Appoint an officer to devise and implement necessary
procedures to ensure protection of Body’s IT system
Appoint an officer to ensure adequate controls exist over
data entry, processing, storage, transmission and output to
ensure security, privacy, accuracy, completeness, and
timeliness of all Body finance systems
Ensure that contracts relating to the computerised financial
system clearly define responsibilities
Ensure adequate assurance is received where other
agencies provide a computer service for financial
applications regarding relevant controls
Ensure adequate controls exist for the transmission of
financial data across networks
Ensure Internal Audit arrangements are in place
Responsible for internal audit function
Investigate irregularities
Immediately report any such irregularities to the CE
Losses and special payments arrangements
Monitor and ensure compliance with NHS Protect
arrangements
Ensure the Body has a programme of risk management in
place
Ensure insurance arrangements exist in accordance with
the
risk management programme
Maintain archives for all documents required to be retained
under DH guidelines
Authorise individuals to retrieve archived documents
SCHEDULE OF MATTERS RESERVED TO THE BOARD
1. ROLE OF THE CHIEF EXECUTIVE
1.1. All powers of the Body that have not been retained as reserved for the
Board or otherwise delegated to a committee, sub-committee or other
body, shall be exercised on behalf of the Board by the Chief Executive
unless otherwise specified in the Standing Financial Instructions or
Scheme of Delegation. The Board may at any time withdraw, alter or vary
such delegation either generally or in relation to any specific matter.
1.2. This reflects the responsibility of the Chief Executive as the Accounting Officer
for the Body. The Chief Executive shall prepare and maintain a detailed
Schedule of Delegation identifying the functions he/she
shall perform
personally and those delegated to directors. Such delegated powers can be
undertaken by the Chief Executive when the need arises.
1.3. The identification of specified directors under this scheme of delegation
does not, unless specifically stated, limit their discretion to allocate a task
to subordinates, but the director concerned will always be held accountable
for those tasks assigned as responsible officer, regardless of any
subsequent delegation.
1.4. In the absence of the Chief Executive, powers delegated to him/her may be
exercised by the Director of Finance or, in his/her absence, such other
director determined by the Chief Executive with the agreement of the
Chairman. In the absence of directors their delegated powers will normally
revert to the Chief Executive unless an alternative nominated officer is
agreed by the Chief Executive and the Chairman.
1.5. The Chief Executive has a responsibility to consult with the Board
regarding any decision, transaction or other matter which might reasonably
be expected to expose Health Education England to significant financial,
reputational, business or other risk.
2. MATTERS RESERVED TO THE BOARD
REGULATION AND CONTROL
2.1. To approve Standing Orders, Standing Financial Instructions, Matters
Reserved for the Board and the Scheme of Delegation for the regulation of
its proceedings and business, and any subsequent variations thereto.
2.2. To receive and review the Register of Interests declared by members of the
Board, which may conflict with those of the Body and determining the
extent to which that member may remain involved with the matter under
consideration.
2.3. To ratify any urgent decisions taken by the Chairman in accordance with
Standing Order 3.1.
2.4. To agree action on litigation against or on behalf of the Body in
circumstances which would have a significant impact on the commercial
interests or reputation of Health Education England
3. APPOINTMENTS
3.1. To appoint and dismiss chairs and members of committees of the Board,
and approve the Terms of Reference for such committees.
3.2. The Chair of the Audit Committee will be appointed by the Secretary of
State for Health.
3.3. To agree the delegation by a Board committee of its powers to a
subcommittee.
3.4. Chairman and non-executive members only: To discipline and dismiss, as
appropriate, the Chief Executive.
3.5. Chairman, non-executive members and Chief Executive only: To appoint
and dismiss, as appropriate, executive members of the Board.
4. BUSINESS PLANS AND BUDGETS
4.1. To review and approve annually:
4.1.1. The Body’s Business Plan
4.1.2. The Body’s Annual Revenue and Capital Budgets
4.2. To approve any changes to the Body’s strategic corporate objectives
following agreement of the Business Plan.
4.3. To approve the Body’s policies and procedures (as reviewed by the
Audit Committee) for the management of risk.
5. FINANCIAL AND PERFORMANCE MONITORING
5.1. To appraise the overall business performance of the Body by receiving a
report from the Chief Executive at each meeting of the Board.
5.2. To approve on an annual basis the Body’s use of the Resource Limit for
the year.
5.3. To appraise the financial position of the Body, by receiving a report at
each meeting from the Director of Finance.
5.4. To appraise other aspects of performance monitoring by receiving periodic
reports linked to progress in achieving the Body’s objectives as set out in the
strategy and annual corporate business plan.
5.5. To receive other reports, as it sees fit, from members, committees and
officers of the Body.
6. AUDIT ARRANGEMENTS
6.1. To approve audit arrangements, including the appointment and,
if
necessary, dismissal of the Body’s internal auditors. In the first instance,
this will be provided by the Department of Health Internal Audit function,
pending longer term arrangements being put in place.
6.2. To receive reports of the Audit Committee meetings and approve
recommendation on investigations carried out into breaches of Standing
Orders or Standing Financial Instructions.
6.3. To receive the Annual Audit Letter received from the external auditor and
agree appropriate action on the recommendation of the Audit Committee.
6.4. To receive an annual report from the Internal Auditor and agree action on
recommendations, where appropriate, of the Audit Committee.
7. APPROVAL OF ANNUAL REPORTS AND ACCOUNTS
7.1. To approve and adopt the Body’s Annual Report.
7.2. To receive and adopt the full and complete set of Annual
Statements of Account.
7.3. To receive and adopt the Annual Report of the Audit Committee.
7.4. To call an Annual Public Meeting at which the Body’s Annual Report
and Annual Accounts will be presented.
SCHEME OF DELEGATION DERIVED FROM THE ACCOUNTABLE OFFICER MEMORANDUM
REF
DELEGATED TO
DUTIES DELEGATED
7
CE
Accountable through NHS Accounting Officer to Parliament for
stewardship of Body resources.
9
CE AND DF
Ensure the accounts of the Body are prepared under principles
and in a format directed by Parliament. Accounts must disclose a
true and fair view of the Body’s income and expenditure and its state
of affairs.
Sign the accounts on behalf of the Board.
10
CE
12 & 13
CE
Ensure a signed statement is included with the accounts outlining the
Chief Executive’s responsibilities as the Accountable
Officer.
Sign a statement in the accounts outlining responsibilities in respect of
Internal Control
Ensure effective management systems that safeguard public funds
and assist Body Chairman to implement requirements of
corporate governance including ensuring managers:
• have a clear view of their objectives and the means to assess
achievements in relation to those objectives;
• be assigned well defined responsibilities for making best use of
resources;
• have the information, training and access to the expert advice they
need to exercise their responsibilities effectively.
12
13
Chair
CE
Implement requirements of corporate governance
Achieve value for money from the resources available to the Body and
avoid waste and extravagance in the organisation's
activities.
Follow through the implementation of any recommendations affecting
good practice as set out on reports from such bodies’ as the National
Audit Office (NAO).
15
DF
15
16
CE
CE
Operational responsibility for effective and sound financial
management and information
Primary duty to see that DF discharges this function.
Ensuring that expenditure by the Body complies with
Parliamentary requirements.
17
CE
The Codes of Conduct and Accountability incorporated in the
Corporate Governance Framework issued to NHS Boards by the
Secretary of State are fundamental in exercising your responsibilities
for regularity and probity. As a Board member you have
explicitly subscribed to the Codes; you should promote their
observance by all staff.
18
CE AND DF
19
CE
Chief Executive, supported by Director of Finance, to ensure
appropriate advice is given to the Board on all matters of probity,
regularity, prudent and economical administration, efficiency and
effectiveness
If CE considers the Board or Chairman is doing something which
might infringe probity or regularity, he/she should set this out
in writing to the Chairman and the Board. If the matter is unresolved,
he/she should ask the Audit Committee to inquire and if
necessary the Body and Department of Health.
21
CE
If the Board is contemplating a course of action which raises an issue
not of formal propriety or regularity but affects the CE’s responsibility
for value for money, the CE should draw the relevant factors to the
attention of the Board. If the outcome is that you are overruled it is
normally sufficient to ensure that your advice and the overruling
of it are clearly apparent from the papers.
Exceptionally, the CE should inform the Body and the DH. In such
cases, and in those described in paragraph 24, the CE should as a
member of the Board vote against the course of action rather than
merely abstain from voting.
SCHEME OF DELEGATION DERIVED FROM THE CODES OF CONDUCT
AND ACCOUNTABILITY
REF
Delegated to
1.3.1.7 Board
1.3.1.8 Board
1.31.9 Board
&
1.3.2.2
AUTHORITIES/DUTIES DELEGATED
Approve procedure for declaration of hospitality and sponsorship.
Ensure proper and widely publicised procedures for voicing complaints,
concerns about maladministration, breaches of Code of
Conduct, and other ethical concerns
Subscribe to Code of Conduct.
1.3.2.4 Board
1.3.2.4 Chair And
Non
–Executive
Members
Board members share corporate responsibility for all decisions of the Board
Chair and non-officer members are responsible for monitoring the executive
management of the organisation and are responsible to
the SofS for the discharge of those responsibilities.
1.3.2.4 Board
The Board has six key functions for which it is held accountable by the
Department of Health on behalf of the Secretary of State:
1. to ensure effective financial stewardship through value for money,
financial control and financial planning and strategy;
2. to ensure that high standards of corporate governance and personal
behaviour are maintained in the conduct of the business of the
whole organisation;
3. to appoint, appraise and remunerate senior executives;
4. on the recommendation of the Chief Executive [and Senior Management
Team], to ratify the strategic direction of the organisation
within the overall policies and priorities of the Government and the NHS,
define its annual and longer term objectives and agree plans
to achieve them;
5. to oversee the delivery of planned results by monitoring performance
against objectives and ensuring corrective action is taken
when necessary;
6. to ensure an effective dialogue with the stakeholders on their plans and
performance and that these are responsive to the
community's needs.
1.3.2.4 Board
It is the Board’s duty to:
1. act within statutory financial and other constraints;
2. be clear what decisions and information are appropriate to the Board and
draw up Standing Orders, a Schedule of Decisions Reserved to the Board
and Standing Financial Instructions to reflect these;
3. ensure that management arrangements are in place to enable
responsibility to be clearly delegated to senior executives for the
main programmes of action and for performance against programmes to be
monitored and senior executives held to account;
4. establish performance and quality measures that maintain the effective
use of resources and provide value for money;
5. specify its requirements in organising and presenting financial and other
information succinctly and efficiently to ensure the board
can fully undertake its responsibilities;
6. establish Audit and Remuneration Committees on the basis of formally
agreed terms of reference which set out the membership of
the sub-committee, the limit to their powers, and the arrangements for
reporting back to the main Board.
1.3.2.5 Chair
It is the Chairman's role to:
1. provide leadership to the Board;
1.3.2.5 CE
1.3.2.6 Non
Executive
Directors
1.3.2.8 Board and
senior
management
team
1.3.2.9 Board
2. enable all Board members to make a full contribution to the Board's affairs
and ensure that the Board acts as a team;
3. ensure that key and appropriate issues are discussed by the Board in a
timely manner;
4. ensure the Board has adequate support and is provided efficiently with all
the necessary data on which to base informed decisions;
5. lead non-executive Board members through a formally-appointed
Remuneration Committee of the main Board on the appointment,
appraisal and remuneration of the Chief Executive and (with the latter) other
executive Board members;
6. appoint non-executive Board members to an Audit Committee of the main
Board;
7. advise the Secretary of State on the performance of non-executive Board
members
The Chief Executive is accountable to the Chairman and non-executive
members of the Board for ensuring that its decisions are
implemented, that the organisation works effectively, in accordance with
Government policy and public service values and for the
maintenance of proper financial stewardship.
The Chief Executive should be allowed full scope, within clearly defined
delegated powers, for action in fulfilling the decisions of the
Board. The other duties of the Chief Executive as Accountable Officer are
laid out in the Accountable Officer Memorandum.
Non-Executive Directors are appointed by the Secretary of State to bring
independent judgement to bear on issues of strategy,
performance, key appointments and accountability through the Department
of Health to Ministers and to the local community
Declaration of conflict of interests.
NHS Boards must comply with legislation and guidance issued by the
Department of Health on behalf of Parliament,
respect agreements entered into by themselves or in on their behalf and
establish terms and conditions of service that are fair to the
staff and represent good value for taxpayers' money.
Scheme of Financial Delegation
This section sets out individual financial approval limits. Any requisitions and
co
mmitments authorised using these limits must be within the budget available.
PROGRAMME COSTS
1. Scheme of Financial Delegation for requisitions and commitments in
respect of Education Contracts – REVENUE*
Approval of Contractual Expenditure
Financial Limits
Over £50m
Up to £50m
Up to £35m
Up to £10m
Up to £1m
Up to £250,000
Up to £10,000
Board Approval followed by HM Treasury
approval via DH
Chief Executive / Director of Finance
Director of Geographies
Local Director
Executive Team members
Head of Finance and other designated
Senior Managers to be agreed by the
Director of Finance / Chief Executive
Nominated Budget holders
2. Scheme of Financial Delegation for requisitions and commitments in
respect of Other Programme Costs - REVENUE*
Approval of Other Programme Costs
Financial Limits
Over £50m
Up to £50m
Up to £35m
Up to £10m
Up to £500,000
Up to £250,000
Up to £10,000
Board Approval followed HM Treasury
approval via DH
Chief Executive/Director of Finance
Director of Geographies
Local Director
Executive Team Members
Head of Finance and other designated
Senior Managers to be agreed by the
Director of Finance/Chief Executive
Nominated Budget holders
ADMINISTRATION COSTS
3. Scheme of Financial Delegation for requisitions and commitments in respect
of goods and services - REVENUE*
Approval of Goods and Services (Administration Costs)
Financial Limit
Over £50m
HM Treasury approval via DH
Between £35m - £50m
Board approval and DH review
Up to £35m
Board approval
Up to £1m
Chief Executive, Director of Finance
Up to £500,000
Executive Team Members
Up to £100,000
Head of Finance and designated Senior
Managers agreed by the Director of
Finance / Chief Executive
All Other
Up to £10,000
Budget holders
* The revenue expenditure authorisation limits in all of the tables above refers to the
commitment of new expenditure, extensions or material changes to current
business.
Where Department of Health and/or Cabinet Office specific restrictions apply ( eg digital
controls) , the maximum limit is the lower of the above limit and the one specified by
Cabinet Office. It should be noted that the expenditure thresholds applied by the
Cabinet Office mean that HEE has no delegated authority levels for certain types of
expenditure.
4. EU Procurement Regulations
The EU procurement rules known as the Public contract regulations (PCR 2015) have
recently been reviewed by The Cabinet Office and updated with a number of key
changes for the UK.
The significant changes are in relation to the process and thresholds for the requirement
of advertising the procurement process.
For all services that were previously classified as Part A services (education and
training) and are not now listed in the light touch regime annex the threshold remains at
£111, 676 (amounts reviewed Bi-annually)
For services that are now classified under the new “light touch regime” which includes
health, social, education and other service contracts the threshold is now £625,000.
All contracts above these thresholds must be advertised in accordance with the
procurement regulations. Procedure documents advising managers of the due process
they must follow, whilst acting under the Scheme of Financial Delegation will be issues
with the revised SOFD after the Board meeting
5. INVOICE AUTHORISATION LEVELS
Transactions with suppliers may necessitate approval of payments which are higher
than the level of authority a member of staff may have to commit to new expenditure. A
register of approval limits for each individual member of staff will be maintained by the
Director of Finance. Invoice authorisation levels apply to expenditure against cost
centres within the responsibility of the individual only.
6. AUTHORISATION OF VIREMENT- REVENUE
Funds should be used for the purposes determined by the Board. Any proposed
change in use must be fully considered.
Virement may not take place between the highest level budget categories agreed Future Workforce, Workforce Development, National Programmes, Education Support
and Administration unless agreed by the Board for values in excess of £1million or the
Director of Finance/Chief Executive for values up to £1million.
Value of delegated virement
Within the high level budget
category
Up to the value of the budget
category
Up to £100,000
Up to £10,000
.
HEE
Chief Executive/Director of Finance
Executive Team members/Head of Finance
Nominated Budget Holders
7. SCHEME OF FINANCIAL DELEGATION TO COMMIT EXPENDITURE –
CAPITAL
Capital Expenditure
Type
Capital Investment
– Non ICT
Eligible Spend
• Whole life
costs including
revenue costs
Limits
Approval
Body/Process
>£5k
The Director of
Financ
e will
determi
ne if the Board has
Body to approve
the capital spend or
if
further
approval is
require
d from
Depart
ment of
The Director of
Financ
e will
determi
ne if the Board has
Body to approve
the capital spend or
if
further
approval is
require
d from
Depart
ment of Health
and/or Cabinet
Office.
• Excluding
ICT costs
Capital Investment ICT spend
on systems
that support admini
stration
• Whole life
costs including
revenue costs
• Includes
finance, HR or
procurement ac
tivities
• Upgrades to
existing systems
• Hosting contracts
for above
systems
• Feasibility, and/or
proof of concept
studies, pilots
• Projects
and Progra
mmes
• Existing
framework
>£5k
Capital Expenditure
Type
Capital Investment
– Other ICT spend
Property
including leases
Asset Disposal
Eligible Spend
Limits
Approval
Body/Process
• Whole life
costs including
revenue costs
• New ICT contracts
• ICT contract
amendments,
contract
extensions
• Feasibility, and/or
proof of concept
studies, pilots
• Projects
and Progra
mmes
• Existing
framework
contracts
• New leases
• Renewals of
existing
leases
• Non-exercise of
lease break
options
• Acquisitions
• New build
developments
• Sale
and lease
back
• Freehold sales
>£5k
The Director of
Financ
e will
determi
ne if the Board has
Body to approve
the capital spend or
if
further
approval is
require
d from
Department of Health
and/or Cabinet
Office.
All
The Director of
Financ
e will
determi
ne if the Board has
Body to approve
the capital spend or
if
further
approval is
require
d from
Depart
ment of
Health and/or
Cabinet
Office.
• Dispose of
assets including
formal write off
£500k limit
Treasury
approval required
for
asset
HEE Apr 15.5 Annex D
Meeting Date
Report Title
Report Author
Purpose
21 April 2015
NDPB status – issues for HEE staff
Gary Theobald, Head of HR & OD
For information
1
INTRODUCTION
1.1
The purpose of this paper is to set out the key actions taken to support,
advise and formally consult with staff regarding Health Education England’s
move to non-departmental public body status with effect from 1 April 2015.
2
BACKGROUND
2.1
The Care Act 2014 1 formally established Health Education England (HEE) as
a non-departmental public body (NDPB), replacing its former status as a
special health authority. Sections 96 to 108 of the Act reaffirm the formal
duties, role and responsibilities of HEE. HEE was required to formally consult
with staff, and their representatives, as part of this change and the formal
consultation document agreed by the Board, and issued on 19 November
2014, discharged that liability.
2.2
The formal consultation period extended from 19 November 2014 until
9 January 2015. The formal consultation document 2 emphasised that as part
of the change to NDPB status:




1
2
HEE remains an “NHS employer” and will still be listed as such under
Annex 2 of the NHS Terms and Conditions Handbook
Service as a direct employee with HEE will count as continuous NHS
service under NHS terms and conditions of service
HEE will continue to deploy and support national NHS terms and
conditions of service for its staff (eg Agenda for Change and the
national medical and dental terms and conditions)
HEE and its staff will retain continuing membership of the NHS Pension
Scheme (please see Annex F: letter of 13 November 2014 from the
NHS Business Services Authority regarding NHS Pensions)
Care Act 2014: http://www.legislation.gov.uk/ukpga/2014/23/pdfs/ukpga_20140023_en.pdf
Realising Our Potential: a sustainable future for Health Education England: http://hee.nhs.uk/wpcontent/blogs.dir/321/files/2014/05/Realising-Our-Potential-Phase-2-consultation-document1.pdf
2

2.3
Newly recruited HEE employees will be able to join the NHS Pension
Scheme.
Formal consultation with HEE’s recognised trade unions took place
concurrently with the period of staff consultation. Formal discussions
regarding the content of the consultation document, HEE’s aims for the
consultation and the consultation process itself, took place with trade union
representatives at meetings of the HEE Partnership Forum on the following
dates:







5 November
12 November
17 November
5 December
16 December
15 January 2015
23 January
3
ENGAGEMENT WITH STAFF
3.1
During the course of the consultation period, and in addition to the formal
consultation processes outlined above, a number of briefing materials were
published, and engagement sessions held, in support of the consultation
proposals to encourage further discussion with, and engagement of, HEE’s
staff as follows;





Chief Executive’s letter to staff – 12 November 2014
Initial briefing sessions by HEE Directors with staff – 19 to 21 November
Staff engagement sessions within each LETB area and national teams –
24 November to 15 December 2015.
Updated Q&A documents on the intranet
Chief Executive’s all-staff webinar 7 January 2015.
3.2
Following the initial briefing sessions, the engagement events provided the
opportunity to broaden the dialogue to encompass how we will work together
and improve our collective impact as one HEE and as an NDPB. The
sessions were organised and managed consistently across LETBs and
national functions. In addition, there was a common structure, attendance
and questions. There was also scope for local variation to suit the local
context as appropriate.
3.3
Each of the LETB events were led either by the appropriate National Director
(geography) supported by the LETB Director, and an HR lead. The national
team events were led by two Executive Directors, again supported by an HR
lead.
3.4
Topics for discussion within the engagement events included:
3




How we will make best use of staff skills in this new system, including
working across boundaries and potentially nationally and locally in new
teams
Determining the best way of ensuring that we share good practice and
work together on implementing it
Agreeing how we can intensify our impact in the area of workforce
transformation
If we want to be a great employer:
 How can we foster a culture of respect and performance?
 How can we ensure our actions mirror our values?
 What other actions can we take?
 What else would help you to do your job better?
3.5
The sessions provided HR staff with the opportunity to ensure questions
about rights, terms and conditions, processes, applying for jobs and other
areas were covered at the events, alongside queries about the impact of
NDPB status.
4
SUPPORT FOR STAFF
4.1
In recognition of the fact that periods of organisational change can be
unsettling for staff, a number of support options were made available to staff,
including:



Help to prepare staff for change, including information on pensions and
benefits and providing support to employees to take these discussions
forward wherever possible;
Support to staff in developing and using formal and informal networks to
open up and access opportunities for development or other roles;
Understand personal responses to change and how to cope with this.
4.2
A comprehensive range of support materials for staff, ‘Your Staff Support’3,
had previously been developed by HEE’s HR Network in conjunction with
staff-side representatives and was officially launched on 5 November 2014.
Staff and managers were encouraged and reminded to make use of these
resources throughout the consultation period and during the subsequent
implementation of the changes in 2015.
5
RESPONDING TO THE CONSULTATION
5.1
Responses, comments and views were actively encouraged as part of the
consultation. Staff meetings during the consultation period were arranged in
3
“Your Staff Support” – Health education England, November 2014:
http://nww.hr.hee.nhs.uk/HEE%20all%20docs/staffsupport/Staff%20Support%20Booklet%20v3%20HR%20Direct.pdf
4
order to clarify any queries regarding these proposals and/or to give staff the
opportunity to convey their views. Staff affected were encouraged to invite
their Trade Union representatives to accompany them if they so wished.
5.2
Across the staff meetings, and through the dedicated in-box for email
responses, over 2,000 submissions and suggestions were received. Those
relating to NDPB status formed a minority of the responses received and, in
summary, consisted of more detailed follow-up questions about individual staff
situations and requests for a better understanding of the impact on HEE’s
national position within the wider national NHS architecture. (On the latter
point, general assurances were given about NDPB status offering a more
substantive statutory position to HEE and other ALBs – such as NHS England
– which have this status).
6
RECOMMENDATION
6.1
The Board is asked to note and endorse the actions taken to advise and
support staff with regards to the move to NDPB status for HEE with effect
from 1 April 2015.
Gary Theobald
Head of HR&OD
14 April 2015