British Film Institute framework document

Q: Signatories

Ben Roberts CEO, British Film Institute Date: 6 March 2026 Ruth Hannant / Polly Payne Directors General - Policy, DCMS Date: 13 March 2026

Question 1

Introduction and background

Accepted Answer

1. Purpose of document

1.1. This framework document (the “ Framework Document ”) has been agreed between the Department for Culture, Media, and Sport (“DCMS” or “ Sponsor ” as the context requires) and the British Film Institute (“ BFI ” or “ Arms-Length Body ” or “ ALB ” or “ Freedom Body ” or “ Non-Departmental Public Body ” or “ NDPB ” as the context require) 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. Arm’s-length bodies (ALB) are a specific category of central government public bodies that are administratively classified by the Cabinet Office. There are three types of ALB: An executive agency, a non-departmental public body (NDPB), and a non-ministerial department. A “Freedom Body” is an ALB which has been granted a set of operational freedoms which provide certain exemptions, or modifications to, a discrete number of financial and operating requirements for all ALBs in recognition of their distinct public-facing role and hybrid public/commercial funding model.

1.3. The Framework Document sets out the broad governance framework within which the BFI and DCMS operate. It sets out the BFI’s core responsibilities, describes the governance and accountability framework that applies between the roles of DCMS and the BFI, and sets out how the day-to-day relationship works in practice, including in relation to governance and financial matters.

1.4. The Framework Document does not convey any legal powers or responsibilities but both parties agree to operate within its terms. Nothing in this document shall prevent the BFI from carrying out its duties under its Royal Charter and applicable UK legislation including legislation referred to in section 4 below which impacts on its functions, activities or powers. The expectations set out here sit alongside BFI’s statutory and charitable duties expected of its staff and trustees (“ Governors ”). Any perceived conflicts between this Framework Agreement and statutory or charitable duties should be brought to the attention of the DCMS sponsorship team to discuss an appropriate way forward.

1.5. The Framework Document primarily concerns the relationship between DCMS and the BFI. Further matters of relevance, in particular detailed strategic plans and strategic direction may be noted here where suitable but are expected to be detailed elsewhere. This Framework Document replaces all previous Framework Documents and Management Agreements and will remain in place until it is superseded.

1.6. References to the BFI include all its subsidiaries and joint ventures, that are classified to the public sector and central government for consolidating into National Accounts purposes. If the BFI establishes any new subsidiary or joint venture, there shall be a document setting out the arrangements between it and the BFI, agreed with DCMS. While any existing or newly created commercial subsidiaries or trading arms are not subject to the same requirements as the BFI itself, the Chief Executive is reminded that MPM requires them to have meaningful oversight of the trading subsidiary, and that it must not be used to avoid or weaken parliamentary scrutiny. All subsidiaries and joint ventures as at 1 March 2026 are listed in the table at section 5.3 . below, none of which are classified to the public sector and central government, for consolidating into National Accounts purposes as all are trading companies. They are therefore not included in references to the BFI.

1.7. Copies of the Framework 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 BFI’s website and gov.uk.

1.8. This Framework Document should be reviewed and updated within three years from the point of agreement unless there are exceptional reasons that render this inappropriate that have been agreed with HM Treasury and the Principal Accounting Officer of the Sponsor. Any changes to ministerial priorities or policy requirements may also be made by an exchange of letters between the Minister and the BFI’s Chair and Chief Executive ; all other changes will be made by the exchange of letters between the DCMS Permanent Secretary and BFI’s Chief Executive. Changes can also be made by an official of the Sponsor with appropriate delegated powers. The Framework Document will be reviewed in light of these changes and updated if necessary.

2. Objectives

2.1. DCMS and the BFI share the common objective of encouraging the cultural, social and commercial success of film, television, and the moving image throughout the UK, as detailed for the BFI in its charitable objects within its Royal Charter.

2.2. To achieve this the BFI and DCMS will work together in recognition of each other’s roles and areas of expertise, providing an effective environment for the BFI to achieve its charitable objectives through the promotion of partnership and trust and ensuring that the BFI also supports the strategic aims and objectives of the department and wider government as a whole within its charitable purposes.

3. Classification

3.1. The BFI has been classified in accordance with the Public Bodies guidance as a central government organisation by the HM Treasury Classifications Team. Central government organisations include Government Departments and their ALBs: Executive Agencies, Non-Departmental Public Bodies, Non-Ministerial Departments, and any other non-market bodies controlled and mainly financed by them.

3.2. Arms-Length Bodies are a specific category of public bodies which are administratively classified by the Cabinet Office. ALBs include: Executive Agencies, Non-Departmental Public Bodies, and Non-Ministerial Public Bodies. The BFI has been administratively classified by the Cabinet Office as a non-departmental public body (NDPB).

3.3. The BFI is a ‘Freedoms Body’. This means that it operates under a set of exemptions from, or modifications to, a specific number of financial and operating requirements. These are detailed at Annex C: Cultural Freedoms Bodies’ Freedoms Charter.

3.4. The BFI is a registered charity in England and Wales (charity number 287780) incorporated under Royal Charter (company number RC000900).

Question 2

Purposes, aims and duties

Accepted Answer

4. Purposes

4.1. The BFI was incorporated in 1933 and its legal basis has been further established under the British Film Institute Act 1949 and the Royal Charter 1983 (amended 2000 and 2015).

4.2. Alongside its responsibilities set out in its Royal Charter (4.3) the BFI should, as the Government’s ALB with responsibility for film and the moving image, support the strategic aims and business plan of DCMS as outlined in section 6.

4.3. The BFI’s charitable purposes are set out in the BFI Royal Charter 1983 and are to:

Encourage the development of the arts of film, television and the moving image throughout the UK
Promote their use as a record of contemporary life and manners
Promote education about film, television and the moving image generally, and their impact on society
Promote access to and appreciation of the widest possible range of British and world cinema
Establish, care for and develop collections reflecting the moving image history and heritage of the UK

4.4. In addition, as a lottery distributor the BFI must:

Distribute funding as per the National Lottery Act 1993 and in alignment with the directions of the Secretary of State, in accordance with section 26-29A of the National Lottery Act 1993. Such directions are primarily set out in writing within the policy, financial and audit directions (the “ NL Directions ”).

5. Powers and duties

5.1. The BFI’s statutory powers and other duties stem from the Royal Charter 1983 (amended in 2000 and 2015). The British Film Institute is a registered charity and must comply with the relevant regulations. The BFI is also the designated National Television Archive in the Communications Act 2003, as regulated by Ofcom, and is a distributer of National Lottery funding under the National Lottery Act 1993.

5.2. This Framework Document complements the BFI’s NL Directions which apply to the administration of National Lottery funding. For the avoidance of doubt, in the event of a conflict, the provisions of the NL Directions take precedence over the Framework Agreement in relation to BFI’s duties as a National Lottery distributor.

5.3. The British Film Institute has a number of trading subsidiary companies which are outside the boundary for inclusion in National Accounts and are therefore not considered as captured within the ‘British Film Institute’ and ‘BFI’ for the purpose of this document. These are listed in the table below.

BFI subsidiaries and joint ventures as at 1 March 2026

Company Name	% ownership (owner)
British Screen Finance Limited (BSF)	100 (BFI)
BFI (Big Screen) Limited	100 (BFI)
BFI Enterprise Limited	100 (BFI)
Project Rosebud Limited	100 (BFI)
National Film Finance Consortium Limited (NFFC)	100 (BSF)
European Co-Production Fund Limited (ECF)	100 (BSF)
British Screen Rights Limited (BSR)	100 (BSF)
The Greenlight Fund Limited (GLF)	100 (BSF)
National Film Development Fund (NFDF)	N/A – limited by guarantee, held on behalf of the Secretary of State
British Film-Makers Limited (BFM)	50 (BSF) – joint venture with ITV

5.4. The BFI’s (statutory) duties and functions are to:

Encourage the development of the arts of film, television and the moving image throughout the UK
Promote their use as a record of contemporary life and manners
Promote education about film, television and the moving image generally, and their impact on society
Promote access to and appreciation of the widest possible range of British and world cinema
Establish, care for and develop collections reflecting the moving image history and heritage of the UK
Distribute funding in accordance with the procedures in the National Lottery Act 1993 and NL Directions
Comply with relevant charities legislation (e.g. Charities Act 2011 and Charities Act 2022)

6. Aims

6.1. Strategic aims are to be set out in associated BFI strategy documents and the Royal Charter, which may as appropriate be supported by delivery plans. The current such documents are the BFI 2033 strategy ‘Screen Culture 2033’, and the associated National Lottery Strategy 2023-33 and supporting BFI National Lottery Funding Plan 2026-2029 (the “ Strategy Document (s)”). Future Strategy Documents must be approved by DCMS and the BFI Board of Governors, with updates on progress against the Strategy Documents provided to the Secretary of State on at least an annual basis.

6.2. Additional or further strategic aims may be communicated to the BFI from DCMS through a number of methods and must be formally agreed in writing. This includes the annual Chair’s letter (see section 16) and the BFI’s settlement letter setting out the amount of DCMS grant-in-aid allocated to the BFI and any conditions attaching to that funding (the “ Settlement Letter( s)”) as well as other formal correspondence between the Department and the BFI.

6.3. In addition to the specific priorities and expectations for the BFI as provided, the Secretary of State of the Sponsor expects all ALBs, where reasonable, to align their activities with the Government’s general priorities – such as screen sector growth across the UK, environmental sustainability, and workforce and skills development. In particular, the BFI should work to align with DCMS’ ‘Outcome Delivery Plan’ (and its successor documents) and the ‘Creative Industries Sector Vision’.

6.4. The BFI’s strategic aims are to:

Create the conditions which screen culture and the UK screen industries can thrive – across the UK and around the world
Curates and present the greatest international public programme of world cinema for audiences – in cinemas, at festivals and online
Care for the BFI National Archive, the most significant film and television archive in the world
Actively seek out and support the next generation of filmmakers
Work with government and industry to make the UK the most creatively exciting and prosperous place to make film internationally ; and
Distribute National Lottery funding for film

6.5. Performance metrics and Key Performance Indicators (“ KPIs ”) will be mutually agreed between the BFI Board and DCMS. Where KPIs relate to grant-in-aid alone they may be set by DCMS and agreed with the BFI.

6.6. These KPIs may be reviewed over the duration of this Framework Document.

6.7. The BFI should consider evaluation plans and key milestones working with the DCMS Central Analytical Team, Spoke Analysts and Public Bodies Team in addition to their Departmental Sponsors. This may take the form of an annual evaluation plan.

6.8. Evaluation is a key part of the policy/programme cycle. It is important to ensure proportionate evaluation is conducted in line with Magenta Book guidance. Proportionality should be considered on risk, cost and learning potential.

Question 3

Governance and accountability

Accepted Answer

7. Governance and accountability

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

7.2. In particular (but without limitation), the BFI 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 statutory duties or specify and explain any non-compliance in its annual report
comply with MPM
in line with MPM have regard to the relevant Functional Standards as appropriate and in particular those concerning Finance, Commercial and Counter Fraud
take into account the codes of good practice and guidance set out in Annex A of this Framework Document, as they apply to ALBs
comply with their duties under charity law

7.3. In line with MPM Annex 3.1 and the Charities Statement of Recommended Practice the BFI shall provide an account of corporate governance in its annual governance statement including the Board’s assessment of its compliance with the Code with explanations of any material departures. To the extent that the BFI does intend to materially depart from the Code, the Sponsor should be notified in advance.

Question 4

Role of the department

Accepted Answer

8. The responsible Minister

8.1. The Secretary of State and any other member of the DCMS ministerial team with delegated responsibility are accountable to Parliament for all matters concerning the BFI.

8.2. The Ministers’ statutory and other powers in respect of the BFI are set out in:

a) The Royal Charter

b) The National Lottery etc. Act 1993

C) The Charities Act 2006

d) British Film Institute Act 1949

8.3. In summary, the key powers include (but are not limited to) the following:

a) From the Royal Charter:

Appoint the Chair and the Governors and their terms of appointment to the BFI Board
Extend the term of a Governor’s term of office by up to 12 months where no replacement can be found

b) From the National Lottery etc. Act 1993:

Give directions as to the matters to be taken into account in determining the persons to whom, the purposes for which, and the conditions subject to which the body distributes any money
By order prohibit a body from distributing money to a person specified in the order

c) From the Charities Act 2006:

Give financial assistance in accordance with its charitable objects to any charitable, benevolent, or philanthropic institution in response of any of the institution’s activities which directly or indirectly benefit the whole or any part of England (whether or not they also benefit any other area)

Appointments of the CEO and to the Board

8.4. The Chief Executive of the BFI is appointed by the Board of Governors under section 10(a) of the Royal Charter in consultation with the responsible Minister and Principal Accounting Officer, as required. A DCMS representative should sit on the appointments panel as a non-voting member. This appointment is subject to the Public Appointments Order in Council and as such must comply with the Governance Code on Public Appointments.

8.5. The Minister shall have the following appointment and approval rights in relation to the BFI’s Board:

The chairperson is appointed by the Secretary of State in accordance with section 6 of the Royal Charter. This appointment is subject to the Public Appointments Order in Council and as such must comply with the Governance Code on Public Appointments.
Governors are appointed by the Secretary of State under section 6 of the Royal Charter. This appointment is subject to the Public Appointments Order in Council and as such must comply with the Governance Code on Public Appointments.
All such appointments should have regard to the principle that 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.

Other Ministerial powers and responsibilities

8.6. The Minister is also responsible for:

agreeing the policy framework within which the BFI operates, in alignment with section 6
setting the performance framework within which the BFI will operate including approving the BFI’s Strategic Documents and having sight of the BFI’s Operational Plans
matters regarding spending approvals, acquisitions, disposals, and joint ventures in line with delegations as set out in the delegation letter and the “Freedoms” detailed in Annex C.
such other matters as may be appropriate and proportionate in the interests of the charity

9. The Principal Accounting Officer

9.1. The Principal Accounting Officer (PAO) is the Permanent Secretary of the department.

PAO’s specific accountabilities and responsibilities

9.2. The PAO of DCMS designates the Chief Executive as the BFI’s Accounting Officer (“ AO ”) and ensures that they are fully aware of their responsibilities. The PAO issues a letter appointing the AO, setting out their responsibilities and delegated authorities.

9.3. The respective responsibilities of the PAO and AOs for ALBs are set out in Chapter 3 of MPM.

9.4. The PAO is accountable to Parliament for the issue of any grant-in-aid to the BFI.

9.5. 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 BFI in the light of the department’s wider strategic aims and priorities
an appropriate budget for the BFI in the light of the Sponsor department’s overall public expenditure priorities
how well the BFI is achieving its strategic objectives and whether it is delivering value for money
the exercise of the Ministers’ statutory responsibilities concerning the BFI as outlined above

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

monitor the BFI’s activities and performance
address significant problems in the BFI, 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 BFI’s objectives and activities in line with the wider departmental risk assessment process
inform the BFI of relevant government policy in a timely manner
bring ministerial or departmental concerns about the activities of the BFI to the full BFI board, and, as appropriate to the departmental Board, requiring explanations and assurances that appropriate action has been taken

10. The role of the sponsorship team

10.1. The DCMS Film and High-End TV team (the “ Film Team ”) in the department is the primary contact for the BFI. The responsible senior civil servant for this relationship is the Director responsible for the Creative Industries. They are the main source of advice to the responsible Minister on the discharge of their responsibilities in respect of the BFI. They also support the PAO on their responsibilities toward the BFI.

10.2. Officials of the Film Team, supported by Finance Business Partners, in the sponsor department will hold quarterly partnership meetings and liaise regularly with BFI officials to review performance against plans, achievement against targets and expenditure against its DEL and AME allocations. The Film Team will also take the opportunity to explain wider policy developments that might have an impact on the BFI and ensure the BFI is represented in other DCMS forums which relate to the BFI’s wider interests. The Film Team and the BFI will discuss and agree the best means of working together and other policy teams in the Department (such as video games, Museums and National Lottery teams), in accordance with wider ALB sponsorship requirements, including the need for a monthly meeting and a quarterly meeting, to be attended by the Senior Sponsor or an approved delegate.

11. Resolution of disputes between the BFI and department

11.1. DCMS and the BFI will aim to work in partnership and deal with any disagreements/disputes that arise in a pragmatic, outcome focussed manner. Each party will endeavour to identify emerging issues as early as possible, and to communicate these openly to each other through the most appropriate route of engagement, respecting the roles of the Board and Sponsor to prevent significant disputes arising. Any disputes between the department and the BFI will be resolved in as timely a manner as possible. The department and the BFI will seek to resolve any disputes through an informal process in the first instance before escalating to DCMS/BFI monthly and / or quarterly meetings with consultation with the BFI Board.

11.2. If this is not possible, then a formal process, overseen by the senior sponsor, will be used to resolve the issue. Failing this, the senior sponsor will ask the relevant policy Director General to oversee the dispute. They may then choose to ask the Permanent Secretary of DCMS to nominate a non-executive member of the department’s Board to review the dispute, mediate with both sides and reach an outcome, in consultation with the responsible Minister and the BFI Board.

12. Freedom of Information requests and Other Data Requests

12.1. Where a request for information is received by either party under the Freedom of Information Act 2000, or the Data Protection Act 2018 and the UK General Data Protection Regulation 2021, the party receiving the request will consult with the other party prior to any disclosure of information as necessary or that may impact or directly concern the other party or where the BFI is carrying out a function on behalf of DCMS or may affect the other party’s responsibilities.

13. Reporting on legal risk and litigation

13.1. The BFI shall provide a quarterly update to the Sponsor 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 in a timely manner.

13.2. In respect of each substantial piece of litigation involving the BFI, including its subsidiary bodies, 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 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 in an appropriate and timely manner
legally privileged documents and information are clearly marked as such
steps are taken to ensure that legal privilege is not waived
individual employees handling the legally privileged documents are familiar with principles to which they must adhere to protect legal privilege
circulation of privileged information within government occurs only as necessary

Question 5

BFI governance structure

Accepted Answer

14. The Chief Executive

Responsibilities of the ALB’s chief executive as accounting officer

14.1. The Chief Executive as 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 BFI. In addition, they should ensure that The BFI as a whole 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 MPM. These responsibilities include the below and those that are set in the AO appointment letter issued by the PAO of the Sponsor department.

Responsibilities for accounting to Parliament and the public

14.2. Responsibilities to Parliament and the public include:

signing the accounts 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 responsible Minister
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 BFI in accordance with Parliamentary and Health Service Ombudsman’s Principles of Good Complaint Handling are established and made widely known within the BFI and published on the BFI’s website.
acting in accordance with the terms of MPM 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:
- any governing legislation
- this Framework Document
- any delegation letter issued to body as set out in paragraph [18]
- any elements of any settlement letter issued to the sponsor department that is relevant to the operation of the BFI
- any separate Settlement Letter that is issued to the BFI from the Sponsor department
- the BFI’s Royal Charter
- The BFI’s NL Directions
ensuring they have appropriate internal mechanisms for monitoring, governance and external reporting regarding non-compliance with any conditions arising from the above documents
giving evidence, normally with the PAO, when summoned before the PAC on the ALB’s stewardship of public funds

Responsibilities to DCMS

14.3. Responsibilities to DCMS include:

establishing, in agreement with the department, the BFI’s Strategic Documents and Operational Plans in the light of the department’s wider strategic aims, agreed priorities and the BFI’s charitable purposes
informing the department of progress in helping to achieve the Government’s policy objectives (as outlined in section 6) which coincide with the BFI’s charitable purposes and in demonstrating how resources are being used to achieve those objectives
ensuring that timely forecasts and monitoring information on performance and finance are provided to the department ; that the department is notified promptly if over or under spends are likely and that corrective action is taken ; and that any significant problems whether financial or otherwise, and whether detected by internal audit or by other means, are notified to the department in a timely fashion

Responsibilities to the board of trustees

14.4. The Chief Executive is responsible for:

advising the Board of Governors on the discharge of their responsibilities as set out in this document, in charity law and in compliance with the BFI’s governing document, founding legislation, and in any other relevant instructions and guidance that may be issued from time to time
advising the Board on the BFI’s performance compared with its aims and objectives
ensuring that financial considerations are taken fully into account by the Board at all stages in reaching and executing its decisions, and that financial appraisal techniques are followed

Managing conflicts

14.5. The Chief Executive should follow the advice and direction of the BFI Board.

14.6. If the Board, or its chairperson, 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 AO should initially reject that course of action and ensure that the Board have a full opportunity to discuss the rationale for that rejection.

14.7. If the Chair or Board of the BFI is minded to instruct its AO to carry out a course inconsistent with their duties as AO, then the AO should make their reservations clear, preferably in writing. If the Board is still minded to proceed, the AO should then:

ask the PAO of the Sponsor to consider intervening to resolve the difference of view, preferably in writing
if the Board’s decision stands, seek its written direction to carry it out, asking the Sponsor to inform HM Treasury
proceed to implement without delay
follow the routine in paragraph 3.6.6 of MPM

15. The Board of trustees

Composition of the Board of trustees

15.1. The BFI will have a board of Governors in line with good standards of corporate governance and as set out in in its establishing Royal Charter and in guidance as set out in Annex A. The role of the board shall be to run the BFI, and to deliver the charitable objectives, in accordance with the purposes as set out above, their statutory, regulatory, charity law and common law duties and their responsibilities under this framework document and the BFI’s framework and any other governing documents. Detailed responsibilities of the board shall be set out in the Board terms of reference. Expenses of the Board will be disclosed in line with the guidance in the Government Financial Reporting manual (FReM).

15.2. The Board will consist of a Chair, together with no more than 14 non-executive members (with a quorum of 5) that have a balance of skills and experience appropriate to directing the BFI’s business in accordance with the requirements set in the BFI’s Royal Charter. An individual shall not be appointed to be a Governor for a first term of more than four years and shall be eligible for re-appointment for a second term of up to four years. For the BFI there should be members whose skills and experience align with the strategic direction of the organisation.

15.3. The Board should also include a Governor for each of Scotland, Wales and Northern Ireland – as appointed by DCMS. The British Film Institute should work with DCMS to attract, recruit and retain diverse membership of its Board, with the goal of having a Board which is broadly representative of the makeup of contemporary British society.

Board Committees

15.4. The Board may set up such committees as necessary for it to fulfil its functions. As is detailed below at a minimum this should include an Audit, Risk & Governance Committee chaired by an independent and appropriately qualified non-executive member, or Governor, of the Board.

15.5. 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.

15.6. 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.

Duties of the Board of Governors

15.7. The board of Governors is specifically responsible for:

establishing and taking forward the strategic aims and objectives of the BFI, consistent with its overall strategic direction, charitable objects, and within the policy and resources framework determined by the Secretary of State
providing effective leadership of the BFI within a framework of prudent and effective controls which enables risk to be assessed and managed
ensuring the financial and human resources are in place for the BFI to meet its objectives
reviewing management performance
ensuring that the Board receives and reviews regular financial and management information concerning the management of the BFI
ensuring that it is kept informed of any changes which are likely to impact on the strategic direction of the BFI Board 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, sponsorship team or directly
ensuring that any statutory or administrative requirements for the use of public funds are complied with; that the Board operates within the limits of its statutory authority and any delegated authority agreed with the Sponsor, and in accordance with any other conditions relating to the use of public funds
ensuring that in reaching decisions, the Board takes into account guidance issued by the Sponsor
ensuring that as part of the above compliance they are familiar with:
- this framework document
- their duties as Governors under charity law
- any delegation letter issued to body as set out in paragraph [18]
- any elements of any settlement letter issued to the Sponsor that is relevant to the operation of the BFI
- any separate Settlement Letter that is issued to the BFI from the Sponsor
- the BFI’s Royal Charter
- the BFI’s NL Directions
- 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 BFI as a whole act in accordance with their obligations under the above documents
demonstrating high standards of corporate governance at all times, including by using the BFI’s Audit, Risk & Governance committee to help the board to address key financial and other risks
appointing a Chief Executive and, in consultation with the department, set performance objectives and remuneration terms linked to these objectives for the Chief Executive which give due weight to the proper management and use and utilisation of public resources.
Cooperating with the DCMS-led annual appraisal of the Chair, including sharing the Board’s own effectiveness review, and putting in place mechanisms for independent appraisal and annual evaluation of the performance of the chairperson by the independent non-executives, taking into account the views of relevant stakeholders. The outcome of that evaluation should be made available to the responsible Minister.
putting in place mechanisms for the Chief Executive to have visibility of Board activity with sufficient time before Board decisions are agreed. The mechanism will enable the Chief Executive to take action where needed as per paragraph ‘Managing conflicts’.
determining all such other things which the Board considers ancillary or conducive to the attainment or fulfilment by the BFI of its objectives, including its charitable purposes.

15.8. The Board should ensure that effective arrangements are in place to provide assurance on risk management, governance and internal control.

15.9. 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). The Board is expected to assure itself of the adequacy and effectiveness of the risk management framework and the operation of internal control.

16. The Chair’s role and responsibilities

16.1. 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 appointment letter, the priorities in the Chair’s letter issued to them by the Sponsor, the statutory authority governing the BFI, the BFI’s governing documents and charity law, and this Framework Document and the documents and guidance referred to within this Framework Document.

16.2. In particular, the annual Chair’s letter from DCMS to the BFI should set out expectations of the Chair in terms of both good governance and strategic objectives for the BFI. This should be annual and focus on shorter-term priorities than this Framework Document, but the two must be consistent.

16.3. Communications between the BFI’s Board and the responsible Minister should normally be through the Chair.

16.4. The Chair is bound by the Code of Conduct for Board Members of Public Bodies, which covers conduct in the role and includes the Nolan Principles of Public Life.

16.5 In addition, the Chair is responsible for:

Ensuring, including by monitoring and engaging with appropriate governance arrangements, that the BFI’s affairs are conducted with probity
ensuring that policies and actions support the responsible Minister’s, and where relevant other Ministers’, wider strategic policies (as outlined in section 6) and, where appropriate, these policies and actions should be clearly communicated and disseminated throughout the BFI

16.6. The Chair has the following leadership responsibilities:

formulating the Board’s strategy
ensuring that the Board, in reaching decisions, takes proper account of guidance provided by the responsible Minister or the department
promoting the efficient and effective use of staff and other resources
delivering high standards of regularity and propriety
representing the views of the board to the general public

16.7. The Chair also has an obligation to ensure that:

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
that in conducting assessments that the view of relevant stakeholders including employees and the sponsorship team are sought and considered
that the Board has a balance of skills appropriate to directing the BFI’s business, and that all Governors (including the Chair) and the Chief Executive continually update their skills, knowledge and familiarity with the BFI 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
board members are fully briefed on terms of appointment, duties, rights and responsibilities
they, together with the other board members, receives appropriate training on financial management and reporting requirements and on any differences that may exist between private and public sector practice
the responsible Minister is advised of the BFI’s needs when board vacancies arise
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
there is a code of practice for board members in place, consistent with the Cabinet Office Code of Conduct for Board Members of Public Bodies

16.8. In line with best practice, the Chair’s performance will be appraised annually by DCMS, factoring the views of Board members and the Chair’s self-appraisal.

17. Individual Governor’s responsibilities

17.1. Individual Governors should:

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
not misuse information gained in the course of their public service for personal gain or for political profit, nor seek to use the opportunity of public service to promote their private interests or those of connected persons or organisations
comply with the Board’s rules on the acceptance of gifts and hospitality, and of business appointments
act in good faith and in the best interests of the BFI
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
ensure that they are familiar with guidance on the duties of trustees under charity law
comply with the BFI’s governing documents

Question 6

Management and financial responsibilities and controls

Accepted Answer

18. Delegated authorities

18.1. The BFI’s delegated authorities are set out in the delegation letter issued annually at the start of a new Financial Year. This delegation letter may be updated and superseded by later versions which may be issued by the Sponsor in agreement with HM Treasury.

18.2. In line with MPM Annex 2.2 these delegations will be reviewed on an annual basis.

18.3. The BFI 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 BFI’s annual budget as approved by the department
incurring expenditure for any purpose that 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
carrying out policies that go against the principles, rules, guidance and advice in MPM

19. Spending authority

19.1. Once the budget allocation has been approved by the sponsor department, and subject to any restrictions imposed by statute, the responsible Minister’s instructions, this document, any settlement or delegation letters, the BFI shall have authority to incur expenditure approved in the budget and in line with their Freedoms without further reference to the sponsor department, on the following conditions:

The BFI 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 BFI shall comply with MPM 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 BFI shall provide the sponsor department with such information about its operations, performance, individual projects or other expenditure as the sponsor department may reasonably require

20. Banking and managing cash

20.1. The BFI must maximise the use of publicly procured banking services (accounts with central government commercial banks managed centrally by Government Banking). As a Freedoms Body, the BFI is exempt from the requirement to use the Government Banking Service (GBS). Where the BFI elects to open non-GBS accounts, formal HM Treasury approval is not required, but the BFI must inform the Sponsor and provide them with balances held in these accounts at set times during the year as communicated to them by the Department.

20.2. Commercial accounts should be operated in line with the principles as set out in MPM.

20.3. The AO is responsible for ensuring ALB has a banking policy as set out in MPM and ensuring that policy is complied with.

21. Procurement

21.1. As a Freedoms Body the BFI has the flexibility to opt in and out of central procurement and is exempt from a number of other spend controls (see Annex C for details). Nonetheless, the following standards of good practice apply.

21.2 The BFI shall ensure that its procurement policies are aligned with and comply with any relevant UK or other international procurement rules and in particular the current Public Procurement Regulations (for example, but not exclusive to, Public Contracts Regulations 2015 and Procurement Act 2023).

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

21.4. In procurement cases where the BFI is likely to exceed its delegated authority limit, and where the relevant Freedom exemption does not apply, procurement strategy approval for the specific planned purchase must be sought from the department’s sponsor team.

21.5. Goods, services, and works should be acquired by competition where necessary and appropriate. Proposals to let direct award or restricted contracts shall be limited and exceptional, and a quarterly report explaining those exceptions should be sent to the department. The direct award financial Threshold value (where no competition has taken place to select a supplier) is set at £139,000 (ex VAT) for each contract or requirement. the BFI must comply with the direct award process as outlined at Annex B and as otherwise communicated to them by the Department. The BFI shall comply with the requirements set out in Annex B.

21.6. Where appropriate and proportionate, procurement by the BFI 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).

21.7. The BFI shall:

engage fully with department and government wide procurement initiatives that seek to achieve VfM from collaborative projects
comply with all relevant Procurement Policy Notes issued by Cabinet Office
co-operate fully with initiatives to improve the availability of procurement data to facilitate the achievement of VfM

21.8. The BFI shall comply with the commercial and grants standards. 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.

22. Risk management

22.1. The BFI 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.

22.2. The BFI will allow for risk-based DCMS involvement in Audit, Risk and Governance Committee meetings.

23. Counter fraud and theft

23.1. The BFI should adopt and implement policies and practices to safeguard itself against fraud and theft.

23.2. The BFI should act in line with guidance as issued by the Counter Fraud Function and in compliance with the procedures and considerations as set in MPM Annex 4.9 and the Counter Fraud Functional Standard. 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.

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

24. BFI Staff

Broad responsibilities for staff

24.1. Within the arrangements approved by the responsible Minister, and subject to any relevant ‘Freedom’, the BFI 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 against employees with protected characteristics under the Equality Act 2010
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 BFI 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 BFI’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
a code of conduct for staff is in place based on the Cabinet Office’s Model Code for Staff of Executive Non-departmental Public Bodies

Staff costs

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

Pay and conditions of service

24.3. The BFI’s staff are subject to appropriate levels of remuneration and terms and conditions of service (including pensions). As a Freedom Body, the BFI will not be subject to the Civil Service Pay Remit Guidance “PRG”) and will have the ability to offer average pay awards in excess of caps set out in this guidance.

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

24.5. The BFI shall continue to adhere to all other Civil Service Pay guidance issued by HM Treasury and the Cabinet Office.

24.6. Where a performance-related pay scheme is operated the BFI shall have due regard to the Senior Pay Guidance.

24.7. The travel expenses of board members shall be tied to the rates allowed to senior staff of the BFI. Reasonable actual costs shall be reimbursed.

Pensions, redundancy and compensation

24.8. Compensation scheme rules and pension scheme rules should reflect legislative and HM Treasury guidance requirements regarding exit payments, in line with their Freedoms detailed in Annex C.

24.9. The BFI staff shall normally be eligible for a pension which meets at least the minimum requirements of current auto-enrolment legislation. Staff may opt out of the occupational pension scheme or defined contribution scheme provided by the BFI, but that employers’ contribution to any personal pension arrangement, including stakeholder pension, shall normally be limited to the level applicable to the standard defined contribution scheme.

24.10. Any proposal by the BFI to pay any redundancy or compensation for loss of office, which is not contractual or statutory, requires the prior approval of the department. Proposals on severance must comply with the rules in chapter 4 of MPM.

Question 7

Business plans, financial reporting and management information

Accepted Answer

25. Corporate and business plans

25.1. The BFI shall submit to DCMS a draft of its multi-year corporate plan for approval and provide any associated/underlying business/operational plans annually, in advance of publication.

25.2. In developing both corporate and business/operational plans, the BFI shall agree with DCMS the issues to be addressed in the plan and the timetable for its preparation. The plan shall reflect the BFI’s statutory and/or other duties, including with regards to the National Lottery, its charitable purposes, 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 BFI contributes to the achievement of the department’s medium-term plan and priorities and aligned performance metrics and milestones in line with its charitable objectives.

25.3. The business/operational plan shall be updated to include key targets and milestones for the years 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, the multi-year corporate strategy should be published by the BFI on its website and separately, along with the annual business/operational plans, be made available to staff.

25.4. 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 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
other matters as agreed between the department and the BFI

26. Budgeting procedures

26.1. Each year, in the light of decisions by the department on the updated draft corporate plan, the department will send to the BFI within an agreed timetable:

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
a statement of any planned change in policies affecting the BFI

26.2. The annual business/operational plan will take account both of approved funding provision (where this applies) and any forecast receipts. It 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 business plan for the year in question.

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

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

27.2. The grant-in-aid will normally be paid in monthly instalments on the basis of written applications showing evidence of need. The BFI 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 the BFI. Grant-in-aid not drawn down by the end of the financial year shall lapse.

27.3. In the event that the department provides the BFI separate grants for specific (ring-fenced) purposes, they should be drawn down as part of the normal monthly instalments. It is acknowledged that due to the nature of grant awards there may be a significant delay between commitment and payment of grants, with the possibility of ‘fall-ins’ during the lifetime of the award. The BFI shall keep the department notified of uncommitted grant funds in hand, using Museums Freedoms to carry grant funds over to another financial year as appropriate. The BFI would, on request, provide evidence that the grant was used for the purposes authorised by the department.

27.4. Uncommitted funds and fall-ins where it is not possible to repurpose or carry over the funds, due to the nature of the restrictions imposed by HM Treasury or other government departments, will be refunded to DCMS.

28. Annual report and accounts

28.1. The BFI Board must prepare annual reports and accounts following the direction given by the Sponsor department (or HM Treasury) in line with Government Resource and Accounts Act 2000 (or the entity’s relevant legislation).

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

28.3. A draft of the report should be submitted to the department as early as possible in the annually agreed timetable. The final version should be submitted for Ministerial approval, allowing at least 10 working days for approval and a draft version should be shared with the department’s officials sufficiently in advance. The accounts should be prepared in accordance with the relevant statutes and specific accounts direction issued by the department as well as the FReM and SORP.

28.4. The reports will include the necessary transparency as required by the National Lotteries etc. Act 1993.

28.5. The British Film Institute is named as a producer of Official Statistics under The Statistics and Registration Services Act 2007. As such, it is required to adhere to the Code of Practice for Official Statistics, to have in place a lead official for statistics, and is encouraged to publish a statement of compliance on its website. The DCMS Head of Profession is available to provide further advice and guidance on statistical issues and is responsible for ensuring the quality and professional integrity of the statistics.

28.6. Where the BFI conducts or commissions social or economic research, relevant professional standards should be applied to ensure that research is impartial, of sufficient quality, legal and ethical. The BFI should nominate a lead contact for research of this type and share their programme of planned and published research with the Head of the DCMS Evidence and Analysis Unit for information purposes. Further guidance on conducting research can also be obtained from the DCMS Evidence and Analysis Unit.

29. Reporting performance to the department

29.1. The BFI 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 and business plans.

29.2. The BFI shall inform the sponsor department of any changes that make achievement of objectives more or less difficult. It shall report board-level reporting on financial and non-financial performance, including performance in helping to deliver Ministers’ policies, and the achievement of key objectives on a quarterly basis and as appropriate via partnership meetings with DCMS.

29.3. The BFI’s performance shall be formally reviewed by the department quarterly via partnership meetings. The BFI will share a summary of its financial and non-financial performance - including performance in helping to deliver ministers’ policies, on key DCMS priorities and against KPIs - quarterly as part of these meetings. The format of this information pack will be agreed between the BFI and their Senior Sponsor in advance. Board papers will be shared on a case-by-case basis, as appropriate.

29.4. The responsible Minister will meet the Chair and Chief Executive once a year.

29.5. The PAO will meet the Chief Executive at least once a year.

30.1. Subject to any overriding legal rights or obligations, the BFI will allow reasonable access by DCMS to its records and personnel where this is necessary for the proper discharge of the Secretary of State’s and PAO’s responsibilities in respect of the BFI. For example, this may include sponsorship audits and operational investigations. A Data Sharing Agreement/MoU will be required prior to the transfer of any personal data.

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

30.3. The department and HM Treasury may request the sharing of data held by the BFI 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.

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

The BFI’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 applicable Cabinet Office Controls pipelines or required in order to meet any condition as set out in any settlement letter

Question 8

Audit

Accepted Answer

31. Internal audit

31.1. The BFI shall:

establish and maintain arrangements for internal audit
ensure that any arrangements for internal audit are in accordance with the Public Sector Internal Audit Standards (PSIAS) as adopted by HM Treasury
set up an audit committee of its board in accordance with the Code of Good Practice for Corporate Governance and the Audit and Risk Assurance Committee Handbook
forward the audit strategy, periodic audit plans and annual audit report, including the BFI Internal Audit opinion on risk management, control and governance as soon as possible to the sponsor department
keep records of and prepare and forward to the department an annual report on fraud and theft suffered by the BFI and notify the sponsor department of any unusual or major incidents as soon as possible
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 BFI

32. External audit

32.1. The Comptroller & Auditor General (C&AG) audits the BFI’s annual accounts and the BFI works with the DCMS and other teams to lay the accounts together with the C&AG’s report before parliament.

32.2. In the event that the BFI has set up and controls subsidiary companies, the BFI will (in the light of the provisions in the Companies Act 2006) 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 BFI shall discuss with the sponsor department the procedures for appointing the C&AG as auditor of the companies.

32.3. The C&AG:

will consult the department and the BFI 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
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 BFI
will share with the sponsor department information identified during the audit process and the audit 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 BFI
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

32.4. The C&AG may carry out examinations into the economy, efficiency and effectiveness with which the BFI 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 BFI 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 endeavours to secure access for the C&AG to any other documents required by the C&AG which are held by other bodies.

Question 9

Reviews and winding up arrangements

Accepted Answer

33. Review of ALB’s status

33.1. The BFI will be reviewed as part of the wider Public Bodies Reviews programme, at a time determined by the department’s ministers and their PAO.

34. Arrangements in the event that the ALB is wound up

34.1. The sponsor department shall put in place arrangements to ensure the orderly winding up of the BFI in accordance with its governing document. In particular it shall ensure that the assets and liabilities of the BFI are passed to any successor charitable organisation with similar charitable purposes and accounted for properly. Where appropriate, any assets wholly or partly funded by grants or grants-in-aid from the sponsor department may revert to the sponsoring department to the extent that valid and legally enforceable conditions have been imposed at the time of the grant. In the event that there is no successor charitable organisation, the assets and liabilities shall be passed to a charity with similar charitable objects or would revert to the sponsor department if this is not possible.

To this end, the BFI and DCMS shall:

34.2. The BFI shall provide the department with full details of all agreements where the BFI 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 BFI.

Question 10

Signatories

Accepted Answer

Ben Roberts

CEO, British Film Institute

Date: 6 March 2026

Ruth Hannant / Polly Payne

Directors General - Policy, DCMS

Date: 13 March 2026

Question 11

Annex A: Guidance

Accepted Answer

The BFI shall have regard to and, where appropriate, comply with the following guidance, documents and instructions unless exempted as a Freedoms Body:

Corporate governance

Financial management and reporting

Management of risk

Commercial management

Public appointments

The following are relevant where public bodies participate in public appointments processes:

Staff and renumeration

General

Charity law

Charity Commission guidance for trustees on their main duties under charity law: The essential trustee: what you need to know, what you need to do
Charity Commission guidance on managing charities (note that some of this guidance will not apply to exempt charities): Managing your charity: detailed information
Charity Commission guidance on exempt charities (if the ALB does not have the Charity Commission as its principal regulator): Exempt charities (CC23)

Question 12

Annex B: DCMS commercial requirements

Accepted Answer

The following outlines in full the commercial requirements of DCMS ALBs, as well as a list of mandated reporting requirements. This document provides additional detail to ALBs Framework Documents, in order to support their full compliance with commercial and procurement requirements.

35. Public Contracts Regulations

35.1. Public Procurement Regulations: The British Film Institute will ensure that its procurement policies are aligned with and comply with any relevant UK or other international procurement rules and in particular the current Public Procurement Regulations (For Example but not exclusive to Public Contracts Regulations 2015 and Procurement Act 2023). As a Central Government Authority / Sub-Central Contracting Authority, The British Film Institute shall comply with the relevant thresholds for procurement activity that apply.

35.2. Direct Award Contracts: The BFI must notify DCMS a minimum of 48 hours in advance of its intention to award a direct award contract the value of which exceeds its delegated threshold. These requirements do not apply to purchases for collections, acquisitions, core public offerings, or subscriptions that support these (e.g. subscriptions to unique journals).

36. Central Government Policy and Processes

36.1. The BFI shall acquire goods and services through fair and open competition, in accordance with the Government Commercial Operating Standards (including the Outsourcing Playbook), delivering value for money through procurement, and operating in line with UK and other international law, including restrictions on state aid/subsidy controls.

36.2. Subject to the exemptions listed (‘Freedoms’) at Annex C the BFI shall comply with current and future requirements on additional spend controls, delegated authorities and authorisations on procurement and leases as notified to them by the Department.

36.3. ALBs designated as a freedom body have flexibility to opt in or out of central procurement on a case by case basis. However, where possible and appropriate, the BFI shall utilise whichever Crown Commercial Services frameworks are relevant to its needs.

36.4. The BFI must support the wider Government Commercial Function’s strategies and programmes in their design, implementation and sustained application.

36.5. The BFI must embed all applicable current and future Procurement Policy Notes into its commercial operations. In particular, the BFI must:

Support the Government’s SME agenda through appropriate procurement activity where this does not conflict with the PB’s charitable or Freedom body status.
Promote the inclusion of the Social Value Act and its associated principles in procurement activity wherever possible.
Comply with Government transparency policies and commitments.
Support Commercial Procurement and Contract Management improvement and oversight initiatives, including Contract Classification, Internal spend control assurance, GCOS Implementation, Pipeline reporting, Assurance/audit implementation, Contracts Finder compliance, Contract KPI reporting, and Commercial Systems/Data improvement initiatives.

36.6. Attend Cabinet Office training programmes designed to raise commercial awareness and improve commercial capability, including Playbook and GCOS masterclasses, and Contract Management Capability Training.

37. Departmental Policy and Processes

37.1. Subject to the exemptions listed (‘Freedoms’) at Annex C the BFI shall comply with departmental spend controls as set by DCMS Commercial.

37.2. In procurement cases where the BFI is likely to exceed any applicable delegated authority limit, procurement strategy approval for the specific planned purchase must be sought from the DCMS Commercial Director.

37.3. The BFI must comply with the direct award process. The DCMS Commercial Director will consider the delegated limit for direct award contracts annually each March and may adjust as appropriate. This limit will be published each year in the BFI’s letter of delegations.

37.4. The BFI must adhere to requirements of its charitable status and inform the DCMS Commercial Director if there may be a conflict with public law and its charitable status.

38. Collaborative initiatives

38.1. The BFI shall:

Support all Commercial Procurement and Contract Management improvement and oversight initiatives from DCMS and the Cabinet Office.
Support collaborative procurement and commercial efforts across the Department and its ALBs. This will include supporting the establishment of a DCMS Commercial Council or similar body, where such a group has been instituted, and wider commitments to support knowledge-sharing and training for staff involved in Commercial and Procurement activity across DCMS ALBs.

*Support the formation and ongoing activities of a commercial function across the DCMS family of public bodies, through engagement with the DCMS Commercial team.

Engage fully with Department and Government wide procurement initiatives that seek to achieve VfM from collaborative projects.

39. Grants and other bodies

39.1. The BFI shall comply with the Commercial and Grants Standards. These standards apply to the planning, delivery, and management of government commercial activity, including management of grants in all departments and arm’s length bodies, regardless of commercial approach used and form part of a suite of functional standards that set expectations for management within government.

39.2. In circumstances where the BFI finds itself having oversight and assurance of other public bodies or the procurement activities of private bodies spending public money the BFI shall ensure, as far as is reasonably practicable, and in so far as it has legal authority to do so, that all such parties adhere to the principles of Managing Public Money including the encouragement of transparent and robust practices and compliance with any applicable law.

40. Management Information and Compliance

40.1. The Department and BFI are committed to sharing information to ensure transparency and alignment.

40.2. BFI recognises that the Department will at times need to request information on an ad hoc basis and/or with a short time frame as required. The BFI must (and within any reasonable timescale required by DCMS) supply any information requested by DCMS, and should proactively seek to provide DCMS with advanced sight of events and publications which the Government would take an interest in.

40.3. In addition to this ad hoc information and open lines of communication, DCMS expects the BFI to provide regular information on Commercial and Procurement. A list of this information can be found below. The list is intended to enable advanced planning for periodic Departmental commissions; it is not exhaustive and may be subject to change.

Commission title	Timescale	DCMS lead team	Purpose
Consultancy Spend Control pipeline and compliance return	Quarterly	Commercial	For DCMS and the Cabinet Office to plan and keep track of the public sector consultancy contracts and approvals.
Commercial Spend Control Pipeline return	Quarterly	Commercial	For the submission of the Department’s quarterly Commercial Spend Control pipeline to Cabinet Office in accordance with Cabinet Office guidelines.
Contract register	To be kept updated and accessible if requested by DCMS	Commercial	For oversight of commercial liability and risk across sectors, categories and suppliers, if a contract register is available.
Government Commercial Operating Standards (GCOS) return	If required/requested	Commercial	For the submission of the Department’s annual Government Commercial Operating Standards (GCOS) return and six-month update against improvement plans.
Contracts finder compliance report	Six months	Commercial	Transparency policy compliance reporting.
Submission of procurement spend transactions to Bravo	Annually	Commercial	To comply with Cabinet Office spend reporting requirements.
Government Key Contracts Public KPIs return	If required/requested	Commercial	For the submission of the Department’s quarterly Key Contracts Public KPIs return to the Cabinet Office.
Procurement pipeline for publication return	Quarterly	Commercial	For the submission of the Department’s quarterly pipeline return for publication on .Gov.uk.
Social Value reporting return	If required/requested	Commercial	To comply with Cabinet Office policy on Social Value reporting.
Prompt Payment reporting for contracts	Quarterly	Commercial	To ensure accurate reporting to Cabinet Office of in-scope contracts including any exclusions and exemptions requested.
Return for the review of key metrics, targets and reports	Quarterly	Commercial	To benchmark procurement spend, compliance assessment to policy and provide data on economic effect of spend.
Direct and Indirect SME spend	Quarterly and Annually	Commercial	To support the Government’s SME Agenda and the DCMS SME Action Plan.

Question 13

Annex C: Cultural Freedom Bodies’ Freedoms Charter (May 2023)

Accepted Answer

Background

The ‘Operational Freedoms’ are a set of exemptions from, or modifications to, a discrete number of financial and operating requirements applying to a group of arm’s length bodies^{[footnote 1]} (ALBs). These ‘Freedoms Bodies’ have been granted these flexibilities in recognition of their distinct public-facing role and hybrid public/commercial funding model.

The following set of Freedoms was approved by HM Treasury and Cabinet Office on 26 April 2023. This document is an updated version of the Charter that was previously agreed by those parties and the Freedoms Bodies’ Sponsor Departments^{[footnote 2]} in Q1 2022/23.

It will be reviewed in Q3 2024/25, or at the next Spending Review, whichever is sooner. The Freedoms are extended at HM Government’s discretion and may be paused or withdrawn where circumstances dictate.

Freedoms- at a glance

Financial freedoms

1. Freedom to maintain and spend reserves of self-generated income.

2. Freedom to invest non-grant income.

3. Exemption from the requirement to use the Government Banking Service.

4. The power to borrow through voted loans from sponsoring departments.

5. Favourable consideration of requests for Departmental Expenditure Limit (DEL) cover to meet exceptional depreciation charges.

6. Freedom to offer pay awards in excess of caps set out in the Pay Remit Guidance.

7. Freedom to opt out of the Principal Civil Service Pension Scheme for new starters.

Spend control freedoms

8. Flexibility to opt in or out of central procurement on a case by case basis.

9. Exemption from advertising, marketing, and communications spend controls.

10. Exemption from the commercial spend control.

11. Exemption from property spend controls.

12. Exemption from facilities management spend controls.

Increases to delegated limits

13. Digital and Technology spend.

14. Self-funded capital projects (HMT delegated limit for DCMS Freedom Bodies only).

Financial freedoms

1. Freedom to maintain and spend reserves of self-generated income

HM Treasury will provide Freedoms Bodies with budgetary cover (for both Resource and Capital spend) for the required use of reserves. It will be based on Freedom Body forecasts and made via Supplementary Estimates. The use of reserves in excess of the allocation will be considered an overspend for which Bodies must alert DCMS/relevant department as early as possible.

2. Freedom to invest non-grant income

Freedoms Bodies are free to invest non grant income in line with the relevant Charity Commission guidance on investments.

3. Exemption from the requirement to use the Government Banking Service

Freedoms Bodies are exempt from the requirement to use the Government Banking Service (GBS). They will continue to provide DCMS/relevant department (“The Department”) with the normal monthly forecasts including the amount of cash held in their bank accounts. They should also continue to seek help and guidance from the GBS to help negotiate value for money banking contracts.

Where Freedoms Bodies elect to open non-GBS accounts, formal HM Treasury approval is not required, but Bodies must inform The Department and provide them with balances held in these accounts at set times during the year as communicated to them by the Department.

4. The power to borrow through voted loans from sponsoring departments

Freedom Bodies have the power to borrow to access seed funding which can be used for cost savings measures and to develop revenue raising projects.

Loans will be made available to Freedom Bodies by The Department up to a limit of £60m per year (across all Freedoms Bodies) and no longer than 25 years in length.

DCMS will include all requests within its Supplementary Estimates return to HM Treasury. Freedoms Bodies may request loans during each financial year up until the Supplementary Estimates return is submitted. Cash can however be made available ahead of Supplementary Estimates as HMT approval at Supplementary Estimates is assumed if DCMS provides the necessary approval to the loan request.

Loan requests from Freedoms Bodies will require a single-stage business case submission to be approved by The Department. If the loan request forms part of a larger business case, the request should be incorporated into an appropriate business case stage (although no earlier than Outline Business Case) . The Department will review any loan requests at an appropriate Committee that aligns with the value of the request.

5. Favourable consideration of requests for additional budgetary cover to meet exceptional depreciation charges

In exceptional circumstances, the impact of depreciation may result in a breach of the HM Treasury ring-fenced budgetary total. The Department will ensure it retains sufficient cover for any known depreciation charges and will explore avenues to manage exceptional depreciation charges within the delegated control totals. It may be for example that requests for additional budgetary cover can be made outside of the supplementary estimates window.

In the unlikely event that this is not possible, the Department would ask HM Treasury to look favourably on any breach caused by these circumstances.

Freedoms Bodies should proactively notify their Department if such an event is anticipated, so that HMT can be informed and remedies can be explored.

6. Freedom to offer average pay awards in excess of caps set out in the Pay Remit Guidance

Freedom Bodies are not subject to the Pay Remit Guidance (“PRG”). However they shall continue to engage with their Sponsor Department during the process of making a pay remit application, particularly prior to completion. They shall also continue to provide outturn data to HM Treasury and adhere to all other Civil Service Pay guidance issued by HM Treasury and the Cabinet Office. This freedom can include multi-year pay settlements as long as they are affordable and this does not prejudice future spending reviews.

This Freedom may be paused under extraordinary future circumstances, and should be reviewed as part of Spending Reviews.

7. Freedom to opt out of the Principal Civil Service Pension Scheme for new starters

Bodies may close, or amend the eligibility criteria to restrict access to the Civil Service Pension Schemes (CSPS) for new members. Current active and non-contributory members will be allowed to continue to accrue and receive their respective benefits. The CSPS closes completely once the last active scheme employee leaves the organisation.

The decision to use this Freedom will be taken by the Body’s Board of Trustees.

To take advantage of this Freedom, Bodies should first consult with The Department, setting out the case for the proposed course of action. They must also confirm that:

(a) relevant statutory requirements have been followed; (b) agreed Trade Union/Management negotiating processes have been undertaken as part of the consultation with staff; (c) a reasonable number of alternative pension providers have been considered to ensure good value.

Following this process, the Freedom Body will need to liaise with the Cabinet Office and Government Actuarial Department (GAD). The decision to close, or restrict access to the CSPS to new starters may incur an “exit charge”. This charge will be determined by the GAD, based on the particular circumstances of the Freedom Body, and will take into account current and future scheme liabilities and the impact on the CSPS. The presumption is that the Freedom Body will pay the exit charge from its own funds and/ or reserves, although they may be able to access the voted loans fund for this purpose.

Spend control freedoms

8. Flexibility to opt in or out of central procurement

Freedoms Bodies may decide whether or not to use central procurement for all items of expenditure on a case by case basis. Where centralised procurement deals exist, Freedoms Bodies should satisfy themselves that any contract outside of these arrangements demonstrates better whole life value for money.

9. Exemption from advertising, marketing, and communications spend control

Freedom Bodies are exempt from the Cabinet Office’s central advertising, marketing and communications (AME) spending control.

10. Exemption from the commercial spend control

Freedoms Bodies are exempt from the Cabinet Office’s Commercial spend control approval processes. This does not, however, supersede the requirement to adhere to the Government Functional Standard and other Cabinet Office guidance for those Bodies that make grants using public funding.

11. Exemption from property spend controls

Freedoms Bodies are exempt from the control on property spend, including the requirement to seek approval for all new facilities management contracts and contract extensions.

12. Exemption from facilities management spend controls

Freedoms Bodies are exempt from the spend control on facilities management, enabling them to procure specialist services, and to do so independently and at pace.

Increases to delegated limits (new)

13. Approval for digital and technology spend

All public bodies are required to record all spend in a digital and technology pipeline as part of a joint Cabinet Office / departmental assurance review process. The control applies to digital spend over £100,000 and technology spend over £1 million.

For Freedoms Bodies, this threshold is increased to £10m for both digital and technology spend. This threshold will be reviewed as part of review of wider freedoms - in Q3 2024/25, or at the next Spending Review, whichever is sooner.

14. Approval for self-funded capital projects (DCMS Freedom Bodies only)

HM Treasury has increased DCMS’ Delegated Capital Expenditure Limit from £30m to £60m for majority-self-funded ALB capital projects. This avoids the requirement of Treasury Approval Points for any projects below £60m, but does not negate the requirement for DCMS approval.

Freedoms retired

The final group of Freedoms may be more accurately described as ‘service level agreements’ (SLAs). They were intended to help streamline the process of complex approvals processes for Freedoms Bodies. Following a review of these commitments, they were found to be largely redundant or irrelevant. As such they will be replaced in the manner described below.

Freedoms retired

The final group of Freedoms may be more accurately described as ‘service level agreements’ (SLAs). They were intended to help streamline the process of complex approvals processes for Freedoms Bodies. Following a review of these commitments, they were found to be largely redundant or irrelevant. As such they will be replaced in the manner described below.

HM Treasury commitment to respond to capital business cases within 28 days, and training to ensure business cases are proportionate and cost-effective.
- To be replaced with departmental-led guidelines which clarify businesses case clearance processes, roles and responsibilities; these may include response time Service Level Agreements (SLAs).
Cabinet Office commitment to respond to redundancy and restructuring applications within two business days.
- To be replaced with departmental-led process maps which clarify roles and responsibilities; these may include response time SLAs.
Pre-application guidance from HM Treasury to reduce the administrative burden from severance payment business cases and to achieve quicker decisions.
- To be replaced with departmental-led process maps which clarify roles and responsibilities; these may include response time SLAs.

Schedule 1: List of Freedom Bodies

Department for Culture, Media & Sport (DCMS)

British Museum

Horniman Museum and Gardens

Imperial War Museums

Museum of the Home

National Gallery

National Museums Liverpool

National Portrait Gallery

Natural History Museum

Royal Armouries

Royal Museums Greenwich

Science Museum Group

Sir John Soane’s Museum

Tate Gallery

V&A Museum

Wallace Collection

British Film Institute

Historic England

British Library

Churches Conservation Trust

Department for the Environment, Food and Rural Affairs (Defra)

Royal Botanic Gardens Kew

Ministry of Defence (MOD)

National Army Museum

National Museum of the Royal Navy

Royal Air Force Museum

Department for Culture, Media & Sport (DCMS)

Department for the Environment, Food & Rural Affairs (Defra)

The Ministry of Defence (MOD)

Refer to Schedule 1 at the end of this document ↩
Refer to Schedule 2 at the end of this document ↩

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Introduction and background

1. Purpose of document

2. Objectives

3. Classification

Purposes, aims and duties

4. Purposes

5. Powers and duties

6. Aims

Governance and accountability

7. Governance and accountability

Role of the department

8. The responsible Minister

Appointments of the CEO and to the Board

Other Ministerial powers and responsibilities

9. The Principal Accounting Officer

PAO’s specific accountabilities and responsibilities

10. The role of the sponsorship team

11. Resolution of disputes between the BFI and department

12. Freedom of Information requests and Other Data Requests

13. Reporting on legal risk and litigation

BFI governance structure

14. The Chief Executive

Responsibilities of the ALB’s chief executive as accounting officer

Responsibilities for accounting to Parliament and the public

Responsibilities to DCMS

Responsibilities to the board of trustees

Managing conflicts

15. The Board of trustees

Composition of the Board of trustees

Board Committees

Duties of the Board of Governors

16. The Chair’s role and responsibilities

17. Individual Governor’s responsibilities

Management and financial responsibilities and controls

18. Delegated authorities

19. Spending authority

20. Banking and managing cash

21. Procurement

22. Risk management

23. Counter fraud and theft

24. BFI Staff

Broad responsibilities for staff

Staff costs

Pay and conditions of service

Pensions, redundancy and compensation

Business plans, financial reporting and management information

25. Corporate and business plans

26. Budgeting procedures

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

28. Annual report and accounts

29. Reporting performance to the department

30. Information sharing

Audit

31. Internal audit

32. External audit

Reviews and winding up arrangements

33. Review of ALB’s status

34. Arrangements in the event that the ALB is wound up

Signatories

Annex A: Guidance

Corporate governance

Financial management and reporting

Management of risk

Commercial management

Public appointments

Staff and renumeration

General

Charity law

Annex B: DCMS commercial requirements

35. Public Contracts Regulations

36. Central Government Policy and Processes

37. Departmental Policy and Processes

38. Collaborative initiatives

39. Grants and other bodies

40. Management Information and Compliance

Annex C: Cultural Freedom Bodies’ Freedoms Charter (May 2023)

Background

Freedoms- at a glance

Financial freedoms