Corporate report

UK Space Agency Framework Document

Published 6 September 2022

Introduction and Background

1. Purpose of document

1.1. This Framework Document (the “Framework Document”) has been agreed between the Department for Business, Energy and Industrial Strategy (“BEIS”) and the UK Space Agency (“Agency”) in accordance with HM Treasury’s handbook Managing Public Money (“MPM”) (as updated from time to time) and has been approved by HM Treasury.

1.2. The Framework Document sets out the broad governance framework within which the UK Space Agency and BEIS operate. It sets out the UK Space Agency’s core responsibilities; describes the overall governance, financial and accountability framework. More detailed ways of working as needed will be set out in a separate Governance addendum.

1.3. The document does not convey any legal powers or responsibilities but both parties agree to operate within its terms.

1.4. References to the Agency include all its subsidiaries and joint ventures that are classified to the public sector and central government for national accounts purposes. If the Agency establishes a subsidiary or joint venture, there shall be a document setting out the arrangements between it and the Agency agreed with BEIS.

1.5. Copies of the document and any subsequent amendments have been placed in the Libraries of both Houses of Parliament and made available to members of the public on the www.gov.uk website.

1.6. This Framework document should be reviewed and updated at least every 3 years, and reviewed when a new CEO is appointed, unless there are exceptional reasons that render this inappropriate that have been agreed with HM Treasury and the Principal Accounting Officer of the sponsor department. The latest date for review and updating of this document is 01/06/2025.

2. Objectives

2.1. BEIS and the Agency, alongside other key government departments, share the common objectives of growing and levelling up the UK space economy; promoting the values of Global Britain; leading pioneering scientific discovery; protecting and defending national interests in and through space; and using space to deliver for UK citizens and the world. To achieve this the Agency and BEIS will work together in recognition of each other’s roles and areas of expertise, providing an effective environment for the Agency to achieve and deliver its objectives through the promotion of partnership and trust and ensuring that the Agency also supports the strategic aims of the National Space Strategy and wider government as a whole. Ministers may write to clarify or set further strategic expectations as necessary.

2.2. The primary duties of the UK Space Agency are to:

· Provide domain-specific knowledge and advice, and programme delivery expertise, including to wider Government and internationally;

· Develop programme and portfolio level policy within a BEIS framework;​

· Deliver mission and capabilities programmes that support sector growth, investment, resilience and competitiveness​

· Promote the UK space sector’s interest and achievements​

· Engage with the sector and make connections to join up industry and academia​

· Represent the UK in international space programmes​

· Deliver value for money of space programmes

· Inspire society and non-space sectors by promoting the value of space discoveries, data and applications

2.3. As an Executive Agency, the Agency is a clearly designated (and financially viable) business unit within BEIS, responsible for undertaking executive functions of the department, in addition to providing expert advice to aid in policy making. While it is managerially separate, the Agency is independently accountable to BEIS (the Sponsor Department), which also reports to Parliament on Agency-specific targets. The Agency is part of the BEIS department and does not have the same level of legal separation from their home department that other categories of public bodies possess.

3. Classification

3.1. On 23 March 2010, the Minister of State, Department for Business, Innovation and Skills and Ministry of Defence announced through a Written Ministerial Statement the intention to establish the UK Space Agency as an executive agency of the Department for Business, Innovation and Skills.

3.2. From 1st April 2010, the United Kingdom Space Agency operated as a shadow executive agency of the Department for Business, Innovation and Skills. From 1 April 2011, the Agency began operation as a full Executive Agency.

3.3. In July 2021, responsibility for the granting of licences for the carrying out of space activities under the Outer Space Act 1986 was transferred from the Agency to the Civil Aviation Authority.

3.4. Powers for launch, return, spaceport and range control regulation rest with the Secretary of State for Transport, and DfT retain responsibility for policy and contingent liabilities in these areas.

Role of the department

4. The Responsible Minister

4.1. The Secretary of State for Business, Energy & Industrial Strategy will account for the Agency on all matters concerning the Agency in Parliament. BEIS is the responsible department for the Agency.

4.2. The Secretary of State is not normally involved in the Agency’s day-to-day management. In exceptional circumstances where action is judged to be required, they may issue directions or instructions to the Chief Executive.

4.3. The Secretary of State has a number of rights and responsibilities in relation to the agency:

· appointment of the Chair and non-executive members of the UK Space Agency Board;

· Approving the appointment of the Chief Executive

· approving the UK Space Agency’s objectives and approval of the Annual Business Plan;

· approving the UK Space Agency’s operating strategy and high-level priorities;

· approving the terms (including remuneration and policy regarding payment of expenses) of all appointments to the Board;

· approving the remuneration framework for all staff and individual pay awards outside the delegated framework, and approval of the UK Space Agency’s budget and funding.

· consent to the granting of orbital operator licences by the Civil Aviation Authority (CAA), taking account of the Department’s retained powers and liabilities for National Security and the National Interest and for contingent liabilities resulting from UK licensed orbital operations. Advice on orbital licensing and consent to the CAA to issue licences is delivered by the Agency who are accountable to the BEIS Space Directorate, on behalf of the Secretary of State.

5. The Principal Accounting Officer (PAO)

5.1. The Permanent Secretary of BEIS is the Principal Accounting Officer for the agency and is responsible for ensuring that there is a high standard of financial management across the agency.

Sponsor department’s accounting officer’s specific accountabilities and responsibilities as Principal Accounting Officer (PAO)

5.2. The Principal Accounting Officer (PAO) of BEIS designates the Chief Executive as the Agency’s Accounting Officer and ensures that they are fully aware of their responsibilities. The PAO issues a letter appointing the Agency’s Accounting Officer (AO), setting out their responsibilities and delegated authorities.

5.3. The respective responsibilities of the PAO and accounting officers for ALBs are set out in Chapter 3 of Managing Public Money.

5.4. The PAO is also responsible, usually via the sponsorship team, for advising the Responsible Minister on:

· an appropriate framework of objectives and targets for the Agency in the light of the department’s wider strategic aims and priorities;

· an appropriate budget for the Agency in the light of the department’s overall public expenditure priorities;

· how well the Agency is achieving its strategic objectives and whether it is delivering value for money; and

· the exercise of the Ministers’ statutory responsibilities concerning the Agency as outlined above.

5.5. The PAO via the sponsorship team is also responsible for ensuring arrangements are in place to:

· monitor the Agency’s activities and performance;

· address significant problems in the Agency, making such interventions as are judged necessary;

· periodically and at such frequency as is proportionate to the level of risk, carry out an assessment of the risks both to the department and the Agency’s objectives and activities in line with the wider departmental risk assessment process;

· inform the Agency of relevant government policy in a timely manner; and

· bring Ministerial or departmental concerns about the activities of the Agency to the AO and Agency Board Chair, and, as appropriate, to the departmental board requiring explanations and assurances that appropriate action has been taken.

6. The role of the Sponsor Department

6.1. The Space Directorate within the Sponsor Department is the primary contact for the Agency. The responsible Senior Civil Servant for this relationship is the Deputy Director of the Sponsorship team within the Space Directorate. They are the main source of advice to the Responsible Minister on the discharge of their responsibilities in respect of the Agency. They also support the PAO on their responsibilities toward the Agency.

6.2. The Sponsor Department will liaise regularly with the Agency and explain wider policy developments that might impact Agency operations or programmes.

6.3. The Sponsor Department will advise the Responsible Minister and PAO on:

· the Agency’s leadership, accountability and governance;

· the effectiveness of the Board and organisation

· the objectives, strategy and accountability of the organisation;

· the remuneration of the CEO;

· any areas of high risk such as novel or contentious commercial matters, working with the Agency and BEIS Finance

6.4. The Sponsor Department’s responsibilities include, but are not limited to:

· supporting and advising the Chief Executive on steering Agency’s activities to ensure that they most effectively support the delivery of Departmental objectives;

· reviewing and updating the Framework Document, in collaboration with the Agency;

· reviewing and commenting on the Annual Reports and Accounts, including reviewing expenditure against the Agency’s budget allocations

· supporting the Agency in compliance with HMT, BEIS and Cabinet Office financial controls;

· reviewing and advising ministers on the agency’s strategy and Business Plan, objectives, performance metrics and corporate plan;

· identifying and escalating high-scoring risks to BEIS, regularly monitor and challenge rating of risks and ensuring appropriate mitigations are in place;

· succession planning and recruitment of all Public Appointments to the Agency Board and annual appraisals;

· acting as the department’s principal point of contact with the Chair and Board of the Agency; and

· holding a non-executive board member seat on the Agency Board.

6.5. If there are concerns about the Agency performance, the Sponsor Department may request to sit on Agency programme and project-level boards, to improve visibility and ensure alignment with BEIS objectives and budget allocations. If refused, the Agency should explain clearly why this would not be the right approach.

6.6. The Corporate Governance Sponsors in the BEIS Partnerships Team will work with the Department Sponsor on wider cross-cutting governance issues including public appointments; reviews; performance management, risk and assurance; classifications and delegations; wider public bodies reform work with Cabinet Office; and the ongoing transformation of BEIS/Partner Organisation ways of working.

7. Contact, Engagement and Resolution of disputes between the UK Space Agency and BEIS

7.1. BEIS and the Agency will have an open, honest and trust-based partnership supported by the principles set out in the Partnerships between Departments and ALBs: Code of Good Practice. All parties have an obligation to ensure they clearly understand each other’s strategic aims and objectives and keep each other informed of progress, risks and concerns.

7.2. The sponsorship team within the BEIS Space Directorate is the primary contact for the Agency on finance or governance matters. The BEIS Space Directorate policy teams as appropriate are the primary contacts for policy issues.

7.3. Any disputes between the Sponsor Department and the Agency will be resolved in a timely manner. The Sponsor Department and the Agency, including the Chair as necessary, will seek to resolve any disputes through an informal process at working level in the first instance. If this is not possible, then a formal process, overseen by the relevant Senior Civil Servant (Senior Sponsor) within the Sponsorship Department, will be used to resolve the issue. Failing this, the Senior Sponsor will ask the relevant policy Director General to oversee the dispute. If necessary, advice will be sought from the BEIS Partnerships team, or transferred to the Cabinet Office partnerships team as a last resort. The Director General may then choose to ask the PAO to nominate a non-executive member of the Department’s Board to review the dispute, mediate with both sides and reach an outcome. Only in exceptional circumstances should matters be referred to Ministerial level

8. Partnership principles between BEIS and the UK Space Agency

8.1. The following partnership principles apply:

· professional: professional people engaged in dialogue relevant to delivering BEIS aims and the UK Space Agency’s objectives, with commitments delivered on time and to specification;

· efficient: all parties ensuring a joined-up and efficient approach amongst their respective constituent elements, and

· trust-based: open dialogue, based on a shared commitment to providing the UK Space Agency with the ability to realise its purpose and pursue the objectives effectively.

· Transparency: encouraging openness and the sharing of information and knowledge between both parties.

8.2. The agency will operate a corporate governance structure that provides a relationship between its Board and BEIS which, so far as practicable and in the light of the other provisions of this Framework Document or as otherwise may be agreed with BEIS, accords with best corporate governance practice.

8.3. BEIS is entitled to reports or other information, on reasonable notice, that will enable it to assess the Agency’s performance and carry out its broader oversight duties. The Agency shall ensure regular reporting is in place to the Sponsor Department, reflecting its financial performance and its achievements in delivering key agency and ministerial objectives.

8.4. The UK Space Agency’s performance will be monitored by the following means:

· regular meetings between representatives of the Sponsor Department and the Agency to discuss activities and performance against objectives;

· at BEIS’ or the Agency’s request, the directors or other representatives will meet to discuss the affairs of the UK Space Agency;

· the Agency will promptly and without delay disclose to BEIS any information that may have a significant bearing on the delivery of, or may have a significant impact on, its objectives.

9. Freedom of Information requests

9.1. Where a request for information is received by either party under the Freedom of Information Act 2000, or the Data Protection Act 1998 or 2018, the party receiving the request will consult with the other party prior to any disclosure of information that may affect the other party’s responsibilities.

10. Reporting on legal risk and litigation

10.1. The Agency shall provide a quarterly report to the Sponsor Department on the existence of any active litigation and any threatened or reasonably anticipated litigation. The parties acknowledge the importance of ensuring that legal risks are communicated appropriately to the Sponsor Department in a timely manner.

10.2. In respect of any substantial piece of litigation involving the Agency, the parties will agree a litigation protocol which will include specific provisions to ensure appropriate and timely reporting on the status of the litigation and the protection of legally privileged information transmitted to the Sponsor Department to facilitate this. Until such time as a protocol is agreed, the parties will ensure that:

· material developments in the litigation are communicated to the Sponsor Department in an appropriate and timely manner;

· legally privileged documents and information are clearly marked as such;

· individual employees handling the legally privileged documents are familiar with principles to which they must adhere to protect legal privilege; and

· circulation of privileged information within government occurs only as necessary.

UK Space Agency Governance and Structure

11. Governance and Accountability

11.1. The Agency shall operate corporate governance arrangements that, so far as practicable and in the light of the other provisions of this Framework Document or as otherwise may be mutually agreed, accord with good corporate governance practice and applicable regulatory requirements and expectations.

11.2. In particular (but without limitation), the Agency should:

· comply with the principles and provisions of the Corporate Governance in Central Government Departments Code of Good Practice (as amended and updated from time to time) to the extent appropriate and in line with their duties or specify and explain any non-compliance in its annual report;

· comply with Managing Public Money;

· in line with Managing Public Money have regard to the relevant Functional Standards as appropriate and in particular those concerning Finance, Commercial and Counter Fraud; and

· take into account the codes of good practice and guidance as they apply to Arms’ Length Bodies.

11.3. In line with Managing Public Money Annex 3.1 the Agency shall provide an account of corporate governance in its annual governance statement including the Agency Board’s assessment of its compliance with the Code with explanations of any material departures. To the extent that the Agency does intend to materially depart from the Code, the Sponsor Department should be notified in advance and their agreement sought to this approach.

12. The Chief Executive

Appointment

12.1. The Chief Executive of the UK Space Agency is a Civil Servant. The terms of appointment to the Civil Service as set out in the Constitutional Reform and Governance Act 2010 apply. The competition needs to be run in line with the Civil Service Recruitment Principles[1]

12.2. The Chief Executive is appointed by the PAO through open and fair competition in consultation with the Chair and the Sponsor Department. The recruitment process is led by the Cabinet Office and the interview panel would usually consist of the BEIS Director General with responsibility for Space, the Chair of the Agency Board and a Civil Service Commissioner. Ministerial engagement and input is led by the BEIS Partnerships team.

Responsibilities of the UK Space Agency’s Chief Executive as accounting officer

12.3. The Chief Executive as Agency AO is personally responsible for safeguarding the public funds for which they have charge; for ensuring propriety, regularity, value for money and feasibility in the handling of those public funds; and for the day-to-day operations and management of the Agency. They should ensure that the Agency is run on the basis of the standards, in terms of governance, decision-making and financial management, that are set out in Box 3.1 of Managing Public Money. These responsibilities include the below and those that are set in the AO appointment letter issued by the PAO of the Sponsor Department.

12.4. The BEIS Director General with responsibility for Space, is the Chief Executive’s line manager in the Civil Service regarding their CEO responsibilities. They will review the Chief Executive’s performance as part of their SCS annual appraisal.

Responsibilities for accounting to Parliament and the Public

12.5. The AO is accountable to the BEIS PAO, and ultimately to Parliament. In their capacity as CEO they are also accountable to Ministers, for the efficient running, financial management, overall performance and planning of the Agency.

12.6. When executing these duties, access to BEIS Ministers may be requested where appropriate or advice provided directly to the Minister in exceptional circumstances, copying the Space Director (see section on Information Sharing).

12.7. Responsibilities to Parliament and the public include:

· signing the accounts and reports and ensuring that proper records are kept relating to the accounts and that the accounts are properly prepared and presented in accordance with any directions issued by the Secretary of State;

· preparing and signing a Governance Statement covering corporate governance, risk management and oversight of any local responsibilities, for inclusion in the annual report and accounts;

· ensuring that effective procedures for handling complaints about the Agency in accordance with Parliamentary and Health Service Ombudsman’s Principles of Good Complaint Handling are established and made widely known within the Agency and published on www.gov.uk;

· acting in accordance with the terms of Managing Public Money and other instructions and guidance issued from time to time by the Department, the Treasury and the Cabinet Office;

· ensuring that as part of the above compliance they are familiar with and act in accordance with:

o any governing legislation

o this framework document,

o any delegation letter issued

o any elements of any settlement letter issued to the sponsor department that is relevant to the operation of the Agency; and

o any separate settlement letter that is issued to the Agency from the sponsor department.

· ensuring they have appropriate internal mechanisms for the monitoring, governance and external reporting regarding compliance any conditions arising from the above documents.

· giving evidence, normally with the PAO, when summoned before the PAC or other Parliamentary Committees on the Agency’s stewardship of public funds

Responsibilities to BEIS

12.8. Responsibilities to BEIS include:

· establishing, in agreement with the Sponsor Department, the Agency’s strategy and business plan, in the light of the Sponsor Department’s wider strategic aims and agreed priorities;

· reporting progress in helping to achieve the department’s policy objectives and in demonstrating how resources are being used to achieve those objectives; and

· ensuring that timely forecasts and information on performance and finance are provided; with prompt notification of likely over or under spends and corrective action taken; as well as notification of significant problems whether financial or otherwise, and whether detected by internal audit or by other means.

· leading, and acting as a role model for the Agency, on building a strong network of collaborative relationships and partnerships with BEIS and across government, and where appropriate beyond (UK, Europe and globally) to help deliver shared organisational, departmental and wider Governmental priorities. Where appropriate, policies and actions should be clearly communicated and disseminated throughout the UK Space Agency.

Responsibilities to the Board

12.9. Responsibilities to the Board include:

· advising the board on the discharge of their duties as set out in this document, in the founding legislation and in any other relevant instructions and guidance that may be issued from time to time;

· seeking endorsement on strategic priorities and business plans

· advising the board on the Agency performance compared with its aims and objectives and discussing capability, capacity and risks;

· ensuring that financial considerations are taken fully into account by the Board, and that financial appraisal techniques are followed as necessary.

Managing conflicts

12.10. The Chief Executive is encouraged to follow the advice and recommendations of the Board.

12.11. If the Board, or its Chair, is contemplating a course of action involving a transaction which the Chief Executive considers would infringe the requirements of propriety or regularity or does not represent prudent or economical administration, efficiency or effectiveness, is of questionable feasibility, or is unethical the Chief Executive in their role as Accounting Officer should reject that course of action or recommendation and ensure that the Board understands the rationale for that rejection.

12.12. The Chief Executive must ensure that the Board have a full opportunity to discuss the rationale. The Chief Executive should confirm the rationale for not following the advice of the Board in writing to the Chair of the Board and the Principal Accounting Officer, and copy that to the Treasury Officer of Accounts.

12.13. If the responsible Minister agrees with the proposed course of action of the Board, it may be appropriate for the Minister to the direct the AO in the manner as set out in Managing Public Money paragraph 3.6.6 onwards.

13. The Board

Responsibilities of the Board

13.1. The Agency will have an Agency Board (Board) in line with good standards of Corporate Governance, the guidance as set out in Annex A and any relevant legislation.

13.2. The role of the Board shall be to run the Agency, and to deliver the objectives, in accordance with the purposes as set out above, their regulatory, common law duties and their responsibilities under this framework document. Remuneration of the Board will be disclosed in line with the guidance in the Government Financial Reporting manual (FReM).

13.3. The Board should look to support the long-term success of the UK Space Agency. This includes:

· Ensuring the strategic aims and objectives are aligned to those set by the Responsible Minister

· Ensuring leadership and resources are in place to meet these aims

· Challenging and supporting management performance

· Reporting to the Sponsor Department.

13.4. The Board is an advisory board, unless there are specific delegations from the Chief Executive as agreed within Boards Terms of Reference. Accountability for decisions will remain with the Chief Executive as AO.

13.5. Detailed responsibilities of the Board shall be set out in the Board terms of reference.

Composition of the Board

13.6. The Board’s composition is considered a critical factor in managing the relationship between the Agency and Departmental Sponsor. The aim is for the Departmental Sponsor and the Chair to share a common view regarding composition and succession planning (of executives and non-executives). The joint aim is for the optimum balance of experience, skills, diversity and background for effective governance of the Agency. To this end, the following will apply:

· the Board will consist of no fewer than 5 members;

· the Chair and other non-executive board members (“NEMS”) should constitute the majority of the Board;

· The Chief Executive and relevant executives will also be on the Board, including an appropriately qualified finance director as described in Annex 4.1 of Managing Public Money

· The designated representative of the Sponsor Department will be on the Board as a non-executive board member.

· the Chair and the Sponsor Department will discuss the proposals for appointments and succession of NEMs and the CEO on a regular basis;

· the Chair is responsible for annual internal and triennial external reviews of Board performance, composition, and succession planning.

· The BEIS Director General with responsibility for Space is responsible for the annual appraisal of the Chair.

Board Committees

13.7. The Board may set up such sub-committees as necessary for it to fulfil its functions.

13.8. The board should make a strategic choice about the style, shape and quality of risk management and should lead the assessment and management of opportunity and risk. The board should ensure that effective arrangements are in place to provide assurance over the design and operation of risk management, governance and internal control in line with the Management of Risk – Principles and Concepts (The Orange Book). At a minimum this should include an Audit and Risk Assurance Committee chaired by an independent and appropriately qualified non-executive member of the Board to provide independent advice and ensure that the department’s Audit and Risk Assurance Committee are provided with routine assurances with escalation of any significant limitations or concerns. The board is expected to assure itself of the adequacy and effectiveness of the risk management framework and the operation of internal control

13.9. The UK Space Agency Board will maintain its independently chaired Audit and Risk Assurance Committee to assist and advise it and the Accounting Officer on the comprehensiveness, reliability and integrity of assurances provided on risk control and governance. Roles and Responsibilities of this committee should be set out in Terms of Reference

13.10. While the Board may make use of committees to assist its consideration of appointments, succession, audit, risk and remuneration it retains responsibility for, and endorses, final decisions in all of these areas. The Chair should ensure that sufficient time is allowed at the board for committees to report on the nature and content of discussion, on recommendations, and on actions to be taken.

13.11. Where there is disagreement between the relevant committee and the Board, adequate time should be made available for discussion of the issue with a view to resolving the disagreement. Where any such disagreement cannot be resolved, the committee concerned should have the right to report the issue to the Sponsor Department, PAO and Responsible Minister. They may also seek to ensure the disagreement or concern is reflected as part of the report on its activities in the annual report.

13.12. The Chair should ensure Board committees are properly structured with appropriate terms of reference. The terms of each committee should set out its responsibilities and the authority delegated to it by the Board. The Chair should ensure that committee membership is periodically refreshed and that individual independent non-executive directors are not over-burdened when deciding the chairs and membership of committees.

Appointments to the Board

13.13. The Board Chair and non-executive Board members are appointed by BEIS Ministers. Such appointments should comply with the Public Appointments Code of Practice for Ministerial Appointments to Public Bodies and may be subject to regulation as determined by government policy and the legal framework at the time an appointment is made, including the HM Treasury guidance on senior pay.

13.14. All such appointments should reflect the diversity of the society in which we live, and appointments should be made taking account of the need to appoint boards which include a balance of skills and backgrounds. All directors including the Chair and Chief Executive continually update their skills, knowledge and familiarity with the Agency to fulfil their role both on the board and committees. This will include but not be limited to skills and training in relation to financial management and reporting requirements, risk management and the requirements of board membership within the public sector.

13.15. A lead non-executive Board member can be appointed by the Board Chair in consultation with the Chief Executive and the Sponsor Department. Their responsibilities could include:

· Standing in for the Chair when required;

· Be available for staff or stakeholders of the UK Space Agency to talk to, and

· Complete the annual appraisal of the Chair’s performance.

Duties of the Board

13.16. The Board will meet at least four times per year. In carrying out its duties, it may use Board Committees as required.

13.17. The Board does not hold a decision-making, executive function. The Board provides strategic advice to the Agency and Sponsor Department, as to whether the Agency is equipped to perform its functions and deliver its strategy, including having sufficient resourcing and a suitable operational model.

13.18. The Board should put arrangements in place to provide assurance on risk management, governance and internal control. The Board is expected to assure itself of the effectiveness of the internal control and risk management systems of the Agency.

13.19. The Board will have specific responsibility for:

· agreeing an Annual Business Plan, key performance indicators, annual budget and accounts, seeking agreement from the Sponsor Department as required in section 25 of this Framework Document;

· monitoring, assuring and reviewing the Agency’s performance against its strategic and financial objectives, including the Annual Business Plan.

· ensuring that the responsible Minister is kept informed of any significant changes which are likely to impact the attainable objectives;

· receiving and reviewing regular financial information concerning the management of the Agency and is informed in a timely manner of any concerns about the Agency’s activities;

· in-depth consideration of Agency matters that the Board deems significant, including potential, new and existing projects;

· collectively supporting the AO to account to Parliament for the Agency’s performance and stewardship of public funds;

· demonstrating high standards of corporate governance at all times, including by using its Committee to help the Board to address key financial and other risks;

· ensuring that any statutory or administrative requirements for the use of public funds are complied with including this framework document; any delegation letter issued to the Agency; any elements of any settlement letter issued to the sponsor department that is relevant to the operation of the Agency; any separate settlement letter that is issued to the Agency from the Sponsor Department; that they have appropriate internal mechanisms for the monitoring, governance and external reporting regarding any conditions arising from the above documents, and ensure that the Chief Executive and the Agency as a whole act in accordance with their obligations under the above documents

· that the Board operates within the limits of its authority and any delegated authority agreed with BEIS and in accordance with any other conditions relating to the use of public funds; and that, in reaching decisions, the Board takes into account guidance issued by BEIS; and

· determining all such other things which the Board considers ancillary or conducive to the attainment or fulfilment by the Agency of its objectives.

14. The Chair’s role and responsibilities

14.1. The Chair is responsible for supporting the Agency’s Chief Executive for delivering the strategy and objectives that are agreed by the Responsible Minister and, where relevant, other Ministers’ wider strategic policies and ensure that the Board’s affairs are conducted with probity.

14.2. The Chair is responsible for leading the board in the delivery of its responsibilities. Such responsibility should be exercised in the light of their duties and responsibilities as set out in their contract of employment/appointment letter, the priorities in the chair’s letter issued to them by the sponsor team, any relevant statute governing the Agency, this document and the documents and guidance referred to within this document.

14.3. Responsibilities include:

· formulating the board’s strategy and enabling a high standard of discussion and debate, helping to steer the Agency by facilitating collective working and supporting the AO in ensuring that Board members have the right information they need to carry out their role;

· ensuring that the Board both supports the Executive team and holds it to account against the agreed business plan and for the overall success of the UK Space Agency;

· leading on the design of induction, succession and assessment of non-executive Board Members to ensure that the Board has an appropriate and relevant balance of skills; that they are fully briefed on the duties and rights of Board members; and that they have access to appropriate training on financial management and reporting requirements;

· the Responsible Minister is advised of the UK Space Agency’s needs when board vacancies arise;

· ensuring collective behaviours and high standards of regularity and propriety, in line with relevant guidance provided by the Responsible Minister, BEIS, or the wider Civil Service. This includes ensuring formal and rigorous annual evaluation of the Board’s performance and that of its Committees and of individual Board members. Individual feedback on the executive team will be through the Chief Executive;

· maintaining an independent position on the board with the objective of constructively challenging, where appropriate, the status quo and management assumptions and decisions; and ensuring that the board in reaching decisions, takes proper account of guidance provided by the Responsible Minister or the Sponsor Department

· providing the Sponsor Department with the Board’s perspective on strategic matters and other relevant issues. This includes being actively involved with the appointment and performance assessment of the Chief Executive.

· ensuring the Agency employs best practice in respect of corporate governance, including the establishment of appropriate committees for areas such as audit.

· ensuring the Board has adequate systems to monitor and address any conflicts between the Agency and the personal interests of its individual members.

· working with the Chief Executive to establish and taking forward the Agency’s strategic aims and objectives, consistent with its overall strategic direction and within the policy and resources framework determined by the Responsible Minister, by working closely with the Sponsor Department;

· providing effective leadership of the Agency within a framework of prudent and effective controls which enables risk to be assessed and managed;

· ensuring that objectives sufficiently take into account the financial and human resources available to Agency

· the work of the board and its members are reviewed and are working effectively including ongoing assessment of the performance of individual board members with a formal annual evaluation and more in-depth assessments of the performance of individual board members when being considered for re-appointment; and that in conducting assessments that the view of relevant stakeholders including employees and the sponsorship team are sought and considered;

· ensuring that the Board receives and reviews regular financial and management information concerning the management of the Agency;

· ensuring that it is kept informed of any changes which are likely to impact on the strategic direction of the Agency or on the attainability of its targets, and determining the steps needed to deal with such changes and where appropriate bringing such matters to the attention of the Responsible Minister and PAO via the executive team, Sponsor Department or directly;

· representing the views of the board to the general public.

· there is a Board Operating Framework in place setting out the role and responsibilities of the Board consistent with the Government Code of Good Practice for Corporate Governance

· ensuring that any statutory or administrative requirements for the use of public funds are complied with; that the Board operates within any limits of its statutory authority and any delegated authority agreed with the Sponsor Department, and in accordance with any other conditions relating to the use of public funds; and that, in reaching decisions, the Board takes into account guidance issued by the Sponsor Department.

14.4. Communications between the Agency board and the Responsible Minister should normally be through the Chair.

14.5. The Chair Is bound by the Code of Conduct for Board Members of Public Bodies[2], which covers conduct in the role and includes the Nolan Principles of Public Life.[3]

15. Individual board members’ responsibilities

15.1. Individual board members shall:

· comply at all times with the Code of Conduct for Board Members of Public Bodies, which covers conduct in the role and includes the Nolan Principles of Public Life as well as rules relating to the use of public funds and to conflicts of interest;

· demonstrate adherence to the 12 Principles of Governance for all Public Body Non-Executive Directors as appropriate[4]; not misuse information obtained in the course of their public service for personal gain or for political profit, nor seek to use the opportunity of public service to promote their private interests or those of connected persons or organisations;

· comply with the Agency’s rules on the acceptance of gifts and hospitality and of business appointments, and

· act in good faith and in the best interests of the Agency.

· ensure they are familiar with any applicable guidance on the role of Public Sector non-executive directors and Boards that may be issued from time to time by the Cabinet Office, HM Treasury or wider government.

· The roles of Board Members should be set out in Terms of Reference upon their appointment by the Sponsor Department.

Management and financial responsibilities and controls

16. Delegated authorities

16.1. At all times the delegations are subject to general finance requirements, policy, procedures and guidance set out by BEIS. The UK Space Agency will consult appropriately within BEIS before making financial commitments not covered by these requirements.

16.2. The Chief Executive shall receive an allocation letter, updated for changes to allocations, or to confirm new allocations, which sets out their delegated authority to commit and certify expenditure and to authorise payments, and to accept receipts, against any budgets for which they are responsible for administering and managing, or against any allocations made to them from other budgets for the primary purpose of delivering the Agency’s or the Department’s objectives. The authority is subject to the terms of HM Treasury’s delegated authority to the Department, and to the observance of any relevant guidance issued by HM Treasury or the Department. In line with Managing Public Money Annex 2.2 these delegations will be reviewed on an annual basis.

16.3. The Agency shall obtain the department’s and where appropriate HM Treasury’s prior written approval before:

· entering into any undertaking to incur any expenditure that falls outside the delegations or which is not provided for in the Agency’s annual budget as approved by the department;

· incurring expenditure for any purpose is or might be considered novel or contentious, or which has or could have significant future cost implications;

· making any significant change in the scale of operation or funding of any initiative or particular scheme previously approved by the department;

· making any change of policy or practice which has wider financial implications that might prove repercussive or which might significantly affect the future level of resources required; or

· carrying out policies that go against the principles, rules, guidance and advice in Managing Public Money.

17. Spending authority

17.1. Once the budget has been approved by the sponsor department, the Agency shall have authority to incur expenditure approved in the budget without further reference to the sponsor department, on the following conditions:

· the Agency shall comply with the delegations set out in the delegation letter. These delegations shall not be altered without the prior agreement of the sponsor department and as agreed by HM Treasury and Cabinet Office as appropriate;

· the Agency shall comply with Managing Public Money regarding novel, contentious or repercussive proposals;

· inclusion of any planned and approved expenditure in the budget shall not remove the need to seek formal departmental approval where any proposed expenditure is outside the delegated limits or is for new schemes not previously agreed;

· the Agency shall provide the sponsor department with such information about its operations, performance, individual projects or other expenditure as the sponsor department may reasonably require.

18. Banking and Managing Cash

18.1. The Agency must maximise the use of publicly procured banking services (accounts with central government commercial banks managed centrally by Government Banking).

18.2. The Agency should only hold money outside Government Banking Service accounts where a good business case can made for doing so and HM Treasury consent is required for each account to be established. Only commercial banks which are members of relevant UK clearing bodies may be considered for this purpose.

18.3. Commercial Accounts where approved should be operated in line with the principles as set out in Managing Public Money.

18.4. The Accounting Officer is responsible for ensuring the Agency has a Banking Policy as set out in Managing Public Money and ensuring that policy is complied with.

19. Procurement

19.1. The Agency shall ensure that its procurement policies are aligned with and comply with any relevant UK or other international procurement rules and in particular the Public Contracts Regulations 2015.

19.2. The Agency shall establish its procurement policies and document these in a Procurement Policy and Procedures Manual.

19.3. In procurement cases where the Agency is likely to exceed its delegated authority limit, procurement strategy approval for the specific planned purchase must be sought from the Department’s sponsor team.

19.4. Goods, services, and works should be acquired by competition. Proposals to let single-tender or restricted contracts shall be limited and exceptional, and a quarterly report explaining those exceptions should be sent to the Department.

19.5. Procurement by the Agency of works, equipment, goods, and services shall be based on a full option appraisal and value for money (VfM), i.e. the optimum combination and whole life costs and quality (fitness for purpose).

19.6. The Agency shall a) engage fully with Department and Government wide procurement initiatives that seek to achieve VfM from collaborative projects, b) comply with all relevant Procurement Policy Notes issued by Cabinet Office and c) co-operate fully with initiatives to improve the availability of procurement data to facilitate the achievement of VfM.

19.7. The Agency shall comply with the Commercial [[5]] and Grants Standards [[6]]. These standards apply to the planning, delivery, and management of government commercial activity, including management of grants in all departments and ALBs, regardless of commercial approach used and form part of a suite of functional standards that set expectations for management within government.

20. Risk management

20.1. The Agency shall ensure that the risks that it faces are dealt with in an appropriate manner, in accordance with relevant aspects of best practice in corporate governance, and develop a risk management strategy, in accordance with the Treasury guidance Management of Risk: Principles and Concepts[7] .

21. Counter Fraud and Theft

21.1. The UK Space Agency should adopt and implement policies and practices to safeguard itself against fraud and theft.

21.2. The UK Space Agency should act in line with guidance as issued by the Counter Fraud Function and in compliance with the procedures and considerations as set in in Managing Public Money Annex 4.9 and the Counter Fraud Functional Standard[8]. It should also take all reasonable steps to appraise the financial standing of any firm or other body with which it intends to enter a contract or to provide grant or grant-in-aid.

21.3. The UK Space Agency should keep records of and prepare and forward to the department an annual report on fraud and theft suffered by the UK Space Agency and notify the sponsor department of any unusual or major incidents as soon as possible. The UK Space Agency should also report detected loss from fraud, bribery, corruption and error, alongside associated recoveries and prevented losses, to the counter fraud centre of expertise in line with the agreed government definitions as set out in Counter Fraud Functional Standard

22. Staff

Broad responsibilities for staff

22.1. Within the arrangements approved by the Responsible Minister and the Treasury the Agency will have responsibility for the recruitment, retention and motivation of its staff. The broad responsibilities toward its staff are to ensure that:

· the rules for recruitment and management of staff create an inclusive culture in which diversity is fully valued; appointment and advancement is based on merit: there is no discrimination on grounds of gender, marital status, sexual orientation, race, colour, ethnic or national origin, religion, disability, community background or age;

· the level and structure of its staffing, including grading and staff numbers, are appropriate to its functions and the requirements of economy, efficiency and effectiveness;

· the performance of its staff at all levels is satisfactorily appraised and the Agency performance measurement systems are reviewed from time to time;

· its staff are encouraged to acquire the appropriate professional, management and other expertise necessary to achieve the UK Space Agency’s objectives;

· proper consultation with staff takes place on key issues affecting them;

· adequate grievance and disciplinary procedures are in place;

· whistle-blowing procedures consistent with the Public Interest Disclosure Act are in place;

· the Civil Service Code and the Civil Service Management Code apply to civil servants who work for the agency. All staff should be aware of the provisions of the Civil Service Code, which forms part of their terms and conditions of employment.

Staff costs

22.2. Subject to its delegated authorities, the Agency shall ensure that the creation of any additional posts does not incur forward commitments that will exceed its ability to pay for them.

22.3. In the Senior Civil Service all appointments (including temporary, substantive and personal promotions) and transfers to and from posts within the UK Space Agency will be carried out observing the requirements and processes imposed by the Civil Service Commissioners, employment legislation and in consultation with BEIS and/ or the Cabinet Office as required.

Pay and conditions of service

22.4. The UK Space Agency’s staff are subject to levels of remuneration and terms and conditions of service (including pensions) in line with the BEIS pay structure, approved by the sponsor department and the Treasury, and in line with the BEIS pay remit. The Agency has no delegated power to amend these terms and conditions.

22.5. Civil Service terms and conditions of service apply to the rates of pay and non-pay allowances paid to the staff and to any other party entitled to payment in respect of travel expenses or other allowances. Payment shall be made in accordance with the Civil Service Management Code[9] and the annual Civil Service Pay Remit Guidance, except where prior approval has been given by the department, and Cabinet Office/the Treasury as appropriate, to vary such rates.

22.6. Staff terms and conditions should be set out in an Employee Handbook, which should be provided to the department together with subsequent amendments.

22.7. The Agency shall abide by public sector pay controls, including the relevant approvals process dependent on the organisations classification as detailed in the Senior Pay Guidance[10] and the public sector pay and terms guidance[11].

22.8. The Agency shall align performance-related pay with BEIS In Year Awards system which shall form part of the annual aggregate pay budget approved by the department or the general pay structure approved by the department and the Treasury whichever is applicable, while also abiding by the Senior Pay Guidance.

22.9. All reasonable travel and subsistence expenses are reimbursed in accordance with UK Space Agency policy and the Civil Service Management Code, having due regard for value for money principles.

22.10. The Chief Executive is accountable for all matters of health and safety associated with the Agency’s business activities and will ensure that resources, structure, and arrangements are adequate for delivering effective performance.

Pensions, redundancy and compensation

22.11. Compensation scheme rules and pension scheme rules should reflect legislative and HM Treasury guidance requirements regarding exit payments and comply with Cabinet Office controls on redundancy and compensation.

22.12. The UK Space Agency’s staff shall normally be eligible for a pension provided through the standard Civil Service pension arrangements. Staff may opt out of the occupational pension scheme provided by the Civil Service but the employers’ contribution to any alternative personal pension arrangement, including stakeholder pension, shall normally be limited to the national insurance rebate level.

22.13. Any proposal by the Agency to move from the existing pension arrangements, or to pay any redundancy or compensation for loss of office, requires the prior approval of BEIS. Proposals on severance must comply with the rules in chapter 4 of Managing Public Money.

Whistleblowing, employee relations, personnel records and health and safety

22.14. The Chief Executive is responsible for ensuring that all cases involving disputes in the workplace, including those made by the Chief Executive or members of the Senior Civil service, are properly and reasonably considered in line with The UK Space Agency’s procedures.

22.15. The Chief Executive will ensure that the UK Space Agency’s ‘raising a concern’ procedures are consistent with applicable legal requirements.

22.16. The Chief Executive will ensure that the Agency develops a programme of action on equal opportunities and valuing diversity which is consistent with central government guidance and other statutory requirements.

22.17. The Chief Executive is responsible for maintaining good employee relations within the Agency. In exercising this responsibility, the Chief Executive will set up suitable arrangements in consultation with representatives of the staff.

22.18. The Chief Executive will co-operate with Departmental consultations with staff representatives on matters of mutual interest and will participate as appropriate.

22.19. The Chief Executive is responsible for maintaining accurate personnel records for staff within his or her delegated authority and will make available to BEIS such information about staff as it reasonably requires.

22.20. There will be full and timely consultation between the agency and BEIS on all HR matters of mutual interest. Where appropriate, the agency will participate in and contribute to Departmental activities on developments in HR.

22.21. The Chief Executive will consult BEIS on matters where responsibilities are not fully delegated, and BEIS will then obtain any necessary clearances from HM Treasury and/ or the Cabinet Office as required.

22.22. Similarly, it is expected that the Department will consult the Chief Executive before making changes to matters where responsibilities are not fully delegated.

Business Plans Financial Reporting and Management information

23. Corporate and business plans

23.1. At least every three years before the end of Q1, the Agency shall submit to the sponsor department a draft of the corporate plan covering three years ahead, and additionally submit draft annual updates in years 2 and 3 to the sponsor department. The corporate plan will be signed off by the BEIS Space Directorate and Director General before going to the responsible Minister for final sign off ahead of publication. The Agency shall agree with the department the issues to be addressed in the plan and the timetable for its preparation. The plan shall reflect the UK Space Agency’s statutory and/or other duties and, within those duties, the priorities set from time to time by the Responsible Minister (including decisions taken on policy and resources in the light of wider public expenditure decisions). The plan shall demonstrate how the Agency contributes to the achievement of the department’s medium-term plan and priorities and aligned performance metrics and milestones.

23.2. The first year of the corporate plan, amplified as necessary, shall form the business plan. The business plan shall be updated to include key targets and milestones for the year immediately ahead and shall be linked to budgeting information so that resources allocated to achieve specific objectives can readily be identified by the department. Subject to any commercial considerations, a digest of the corporate and business plans should be published by the Agency on its website and separately be made available to staff.

23.3. The following key matters should be included in the plans:

· key objectives and associated key performance targets for the forward years, and the strategy for achieving those objectives;

· key non-financial performance targets;

· a review of performance in the preceding financial year, together with comparable outturns for the previous 2 years, and an estimate of performance in the current year;

· alternative scenarios and an assessment of the risk factors that may significantly affect the execution of the plan but that cannot be accurately forecast; and

· other matters as agreed between the department and the Agency.

24. Budgeting procedures

24.1. Each year, in light of decisions by the department on the updated draft corporate plan, the department will send to the Agency by 1st April:

· a formal statement of the annual budgetary provision allocated by the department in the light of competing priorities across the department and of any forecast income approved by the department; and

· a statement of any planned change in policies affecting the Agency.

24.2. The approved annual business plan will take account both of approved funding provision where this applies and any forecast receipts, and will include a budget of estimated payments and receipts together with a profile of expected expenditure and of draw-down of any departmental funding and/or other income over the year. These elements form part of the approved business plan for the year in question.

25. Grant-in-aid and any ring-fenced grants

25.1. Any grant-in-aid provided by BEIS for the year in question will be voted in the department’s Supply Estimate and be subject to Parliamentary control.

25.2. The grant-in-aid will normally be paid in monthly instalments on the basis of written applications showing evidence of need. The Agency will comply with the general principle, that there is no payment in advance of need. Cash balances accumulated during the course of the year from grant-in-aid or other Exchequer funds shall be kept to a minimum level consistent with the efficient operation of Agency. Grant-in-aid not drawn down by the end of the financial year shall lapse. Subject to approval by Parliament of the relevant Estimates provision, where grant-in-aid is delayed to avoid excess cash balances at the year-end, the department will make available in the next financial year any such grant-in-aid that is required to meet any liabilities at the year end, such as creditors.

25.3. In the event that the department provides the Agency separate grants for specific (ringfenced) purposes, it would issue the grant as and when the Agency needed it on the basis of a written request. The Agency would provide evidence that the grant was used for the purposes authorised by the department. The Agency shall not have uncommitted grant funds in hand, nor carry grant funds over to another financial year.

26. Annual report and accounts

26.1. The Agency board must publish an annual report of its activities together with its audited accounts after the end of each financial year. The Agency shall provide the department its finalised (audited) accounts by a date as agreed with BEIS Finance each year in order for the accounts to be consolidated within BEIS. A draft of the report should be submitted to the department at least one month before the proposed publication date, unless otherwise agreed with BEIS Finance. The accounts should be prepared in accordance with the relevant statutes and specific accounts direction issued by the department as well as the Treasury’s Financial Reporting Manual (FReM).

26.2. The annual report must:

· cover any corporate, subsidiary or joint ventures under its control;

· comply with the FreM,

· outline main activities and performance during the previous financial year and set out in summary form forward plans.

· be submitted to Ministers for information before being laid in Parliament

26.3. Information on performance against key financial targets is included within the annual report and subject to the auditors consistency opinion The report and accounts shall be laid in Parliament and made available on the Agency website, in accordance with the guidance in the FReM.

27. Reporting performance to the department

27.1. BEIS and the agency will have an open, honest and trust-based partnership supported by the principles set out in the Partnerships between Departments and ALBs: Code of Good Practice. Both parties will ensure they clearly understand the strategic aims and objectives of their partners. Both partners will also commit to keeping each other informed of any significant issues and concerns.

27.2. The Agency shall operate management, information and accounting systems that enable it to review in a timely and effective manner its financial and non-financial performance against the budgets and targets set out in the corporate plans.

27.3. It shall report financial and non-financial performance, including performance in helping to deliver Ministers’ policies, and the achievement of key objectives regularly.

27.4. The Agency shall inform the sponsor department of any changes that make achievement of objectives substantially more or less difficult. It shall report financial and non-financial performance, including performance in helping to deliver Ministers’ policies, and the achievement of key objectives regularly.

27.5. The UK Space Agency’s performance shall be formally reviewed by the department twice a year.

27.6. In addition to routine and policy led contact between BEIS and the UK Space Agency, meetings will take place between:

· A Sponsor Board Member (or appropriate member of Sponsorship team) and Chair, at least once a quarter.

· A Sponsor Board Member (or appropriate member of Sponsorship team) and CEO, once a month, or as required.

· The Responsible Minister will meet the board or Chair once a year, or as required.

· CEO and Sponsor DG at least once a year, or as required.

· CEO and PAO once a year, or as required.

· Sponsor Board Member and the agency’s Director of Finance & Commercial (or delegates) at least once a month, or as required.

· Others may be invited to join these meetings as required, or further meetings may be proposed according to business need.

28. Information Sharing

28.1. The department has the right of access to all of the UK Space Agency records and personnel for any purpose including, for example, sponsorship audits and operational investigations. BEIS should share information with the Agency in the spirit of transparency wherever possible and appropriate.

28.2. The Agency shall provide the sponsor department with such information about its operations, performance, individual projects or other expenditure as the sponsor department may reasonably require. BEIS should only withhold approvals or information requests from Agency where there is sufficient justification.

28.3. The department and HM Treasury may request the sharing of data held by the Agency in such a manner as set out in central guidance except insofar as it is prohibited by law. This may include requiring the appointment of a senior official to be responsible for the data sharing relationship.

28.4. As a minimum, the Agency shall provide the department with information monthly that will enable the department satisfactorily to monitor:

· the UK Space Agency’s cash management;

· its draw-down of grant-in-aid;

· forecast outturn by resource headings;

· other data required for the Online System for Central Accounting and Reporting (OSCAR).

· data as required in respect of its compliance with any Cabinet Office Controls pipelines or required in order to meet any condition as set out in any settlement letter

28.5. Requests for advice and briefings for ministers will be commissioned by private offices via the BEIS Space Directorate. The Space Directorate will coordinate any required UK Space Agency input and these will be submitted to private offices via the Space Director. If there are significant differences of opinion, the Space Directorate will ensure that UK Space Agency differing views are raised and discussed in the advice.

28.6. If the UK Space Agency wish to initiate the submission of advice or information to ministers that has not been formally commissioned, this advice will be shared and discussed with BEIS Space Directorate prior to submission, with any issues arising resolved wherever possible prior to submission. Such advice will clearly be marked as coming from the UK Space Agency, unless agreed to be a joint or BEIS Space Directorate submission. In exceptional circumstances, the UK Space Agency Chief Executive will retain the right to provide direct Ministerial advice or briefing, but must ensure BEIS Space Director is copied to this advice.

28.7. When the BEIS Space Directorate is sending advice or briefings to ministers, these will routinely be copied to the UK Space Agency Chief Executive other than in limited circumstances (for example, briefings related to the performance of the Chief Executive).

Audit

29. Internal audit

29.1. The Chief Executive will be responsible for sourcing and commissioning the internal audits required to ensure the proper and efficient conduct of the UK Space Agency’s affairs and to discharge Accounting Officer Responsibilities. These services will comply with the objectives, standards and practices laid down by HM Treasury’s Public Sector Internal Audit Standards. The Audit and Risk Assurance Committee may assist in this role.

29.2. The Chief Executive, as Accounting Officer, will be advised by the Audit and Risk Assurance Committee.

29.3. The PAO has the right to receive copies of the audit strategy, periodic audit plans and internal audit reports, including the internal audit opinion on risk management, control and governance.

29.4. The UK Space Agency will continue to be subject to such financial and management scrutiny by BEIS as is necessary in order to satisfy the Principal Accounting Officer’s responsibilities.

29.5. The Agency shall:

· forward the audit strategy, periodic audit plans and annual audit report, including the Agency Head of Internal Audit opinion on risk management, control and governance as soon as possible to the sponsor department; and

· keep records of and prepare and forward to the department an annual report on fraud and theft suffered by the Agency and notify the sponsor department of any unusual or major incidents as soon as possible.

· will share with the sponsor department information identified during the audit process and the Annual Audit Opinion Report (together with any other outputs) at the end of the audit, in particular on issues impacting on the Department’s responsibilities in relation to financial systems within the Agency.

30. External audit

30.1. The UK Space Agency will be subject to external audit. This will be conducted by the National Audit Office (NAO), or their appointed contractors, in respect of finance and value for money audits required by Parliament and by other bodies appropriate to the audit of technical ability, service delivery, quality and standards. The Audit and Risk Assurance Committee may assist in this role as needed.

30.2. The Comptroller & Auditor General (C&AG) audits the Agency’s annual accounts and lays them before Parliament, together with their report.

30.3. The Comptroller and Auditor General (C&AG):

· Has a statutory right of access to relevant documents, including by virtue of Section 25 (8) of the Government Resources and Accounts Act 2000, held by another party in receipt of payments or grants from the UK Space Agency;

· Will share with BEIS and Agency information identified during the audit process and the audit report (together with any outputs) at the end of the audit, in particular on issues impacting on BEIS responsibilities in relation to financial systems within the UK Space Agency, and

Will consider requests from departments and other relevant bodies to provide Regulatory Compliance Reports and other similar reports at the commencement of the audit. Consistent with the C&AG’s independent status, the provision of such reports is entirely at the C&AG’s discretion.

30.4. The C&AG may carry out examinations into the economy, efficiency and effectiveness with which the UK Space Agency has used its resources in discharging its functions. For the purpose of these examinations the C&AG has statutory access to documents as provided for under Section 8 of the National Audit 1983. In addition, the UK Space Agency shall provide, in conditions to grants and contracts, for the C&AG to exercise such assess to documents held by grant recipients and contractors and sub-contractors as may be required for these examinations; and shall use its best endeavors to secure access for the C&AG to any other documents required by the C&AG which are held by other bodies.

30.5. In the event that the Agency has set up and controls subsidiary companies, the Agency will ensure that the C&AG has the option to be appointed auditor of those company subsidiaries that it controls and/or whose accounts are consolidated within its own accounts. The Agency shall discuss with the sponsor department the procedures for appointing the C&AG as auditor of the companies.

30.6. The C&AG will consult the department and the Agency on whom – the NAO or a commercial auditor – shall undertake the audit(s) on his behalf, though the final decision rests with the C&AG.

30.7. The C&AG may carry out examinations into the economy, efficiency and effectiveness with which the Agency has used its resources in discharging its functions. For the purpose of these examinations the C&AG has statutory access to documents as provided for under section 8 of the National Audit Act 1983. In addition, the UK Space Agency shall provide, in conditions to grants and contracts, for the C&AG to exercise such access to documents held by grant recipients and contractors and sub-contractors as may be required for these examinations; and shall use its best endeavors to secure access for the C&AG to any other documents required by the C&AG which are held by other bodies.

Reviews and Winding up arrangements

31. Review of the UK Space Agency’s status

31.1. The Agency will be reviewed in line with Cabinet Office guidance.

32. Arrangements in the event that the Agency is wound up

32.1. The sponsor department shall put in place arrangements to ensure the orderly winding up of the Agency. In particular it should ensure that the assets and liabilities of the Agency are passed to any successor organisation and accounted for properly. (In the event that there is no successor organisation, the assets and liabilities should revert to the sponsor department.) To this end, the department shall:

· have regard to Cabinet Office guidance on winding up of ALBs[12].

· ensure that procedures are in place in the Agency to gain independent assurance on key transactions, financial commitments, cash flows and other information needed to handle the wind-up effectively and to maintain the momentum of work inherited by any residuary body; specify the basis for the valuation and accounting treatment of the UK Space Agency’s assets and liabilities;

· ensure that arrangements are in place to prepare closing accounts and pass to the C&AG for external audit. It shall be for the C&AG to lay the final accounts in Parliament, together with his report on the accounts;

· arrange for the most appropriate person to sign the closing accounts. In the event that another ALB takes on the role, responsibilities, assets and liabilities, the succeeding ALB AO should sign the closing accounts. In the event that the department inherits the role, responsibilities, assets and liabilities, the sponsor department’s PAO should sign.

32.2. The Agency shall provide the sponsor department with full details of all agreements where the Agency or its successors have a right to share in the financial gains of developers. It should also pass to the department details of any other forms of claw-back due to the Agency.

HM Treasury contacts

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If you require this information in an alternative format or have general enquiries about HM Treasury and its work, contact:

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Tel: 020 7270 5000

Email: public.enquiries@hmtreasury.gov.uk

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[1] http://civilservicecommission.independent.gov.uk/civil-service-recruitment/

[2] https://www.gov.uk/government/publications/code-of-conduct-for-board-members-of-public-bodies

[3] https://www.gov.uk/government/publications/the-7-principles-of-public-life

[5] https://www.gov.uk/government/publications/commercial-operating-standards-for-government

[6] https://www.gov.uk/government/publications/grants-standards

[7] http://www.hm-treasury.gov.uk/orange_book.htm

[8] https://www.gov.uk/government/publications/government-functional-standard-govs-013-counter-fraud

[9] https://www.gov.uk/government/publications/civil-servants-terms-and-conditions

[10] https://www.gov.uk/government/publications/senior-civil-service-pay-and-reward

[11] https://www.gov.uk/government/publications/public-sector-pay-and-terms-guidance-note

[12] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/690952/Public_Bodies_-_a_guide_for_departments_-_chapter_10.pdf