Corporate report

DCMS accounting officer system statement 2025

Published 28 February 2025

Principal Accounting Officer’s statement

I am the Principal Accounting Officer (PAO) to the Department for Culture, Media and Sport (DCMS). This system statement sets out all of the accountability relationships and processes within my department, making clear who is accountable for what at all levels of the system. It replaces the version previously published in 2018.

DCMS, and the people, places and businesses it serves, are fundamental to raising prosperity and living standards in the UK. The department drives growth and enriches the lives of citizens and communities across the UK.

The Secretary of State for DCMS and other departmental ministers have a duty to Parliament to account, and be held to account, for the policies, decisions and actions of this Department. They look to me as the Department’s Accounting Officer to delegate within the Department to deliver their decisions and to support them in making policy decisions and handling public funds.

As PAO, I am personally responsible for safeguarding the public funds for which I have been given charge under the DCMS Estimate and the National Lottery Distribution Fund, for which I have been given charge by section 21 of the National Lottery etc. Act 1993. Where I have appointed additional Accounting Officers, their responsibilities are also set out in this system statement.

This system statement covers the core department, its public bodies and other arm’s length relationships. It describes accountability for expenditure of all public money through the department’s estimate, all public money raised as income, and the management of shareholdings, financial investments and other publicly owned assets for which I am responsible.

This system statement helps me ensure that I am fulfilling my responsibilities as an Accounting Officer, in accordance with HM Treasury’s guidance set out in ‘Managing Public Money’.

This system statement describes the accountability system which is in place at the date of this statement, and which will continue to apply until a revised statement is published.

Susannah Storey

February 2025

DCMS Permanent Secretary and Accounting Officer

Responsibilities within the Core Department

This section sets out how the Core Department is organised to ensure accountability for public funds and policy objectives.

Operating structure

The operating structure is designed with a focus on our policy responsibilities, as well as incorporating the support functions required to deliver on those responsibilities. Since the machinery of government announcements of February 2023, DCMS’s structure has been organised in two consolidated areas: Strategy and Operations and Policy Group.

The operating structure has two Directors General posts, which are responsible for Strategy and Operations and Policy Group. The Directors General report to the Permanent Secretary. The Chief Financial Officer can also report directly to the Permanent Secretary as PAO. DCMS’s operating structure establishes clear lines of reporting, which ensures that authority is delegated appropriately and the necessary review channels are in place.

Governance structure

The Permanent Secretary is appointed by the Treasury as the department’s PAO. They take personal responsibility for maintaining a sound system of internal control that supports the delivery of the department’s policies, aims and objectives, whilst safeguarding public funds and departmental assets. The governance framework for the department has been designed to maintain the existing internal control environment whilst developing further controls as appropriate as the department’s risk profile evolves.

Further information on the membership and purpose of these groups can be found in the following table:

Departmental Board and Non-Executive Board Members/Executive Board	These boards provide the collective strategic and operational leadership of the department, bringing together its ministerial and civil service leaders with senior non-executives from outside government.
Audit and Risk Assurance Committee	Audit and Risk Assurance Committee (ARAC) supports the Accounting Officer and Departmental Board by reviewing the comprehensiveness and reliability of assurances on governance, risk management, the control environment and the integrity of financial statements in the Annual Report. Within this the Audit and Risk Assurance Committee should have particular engagement with the work of Internal Audit, the work of the External Auditor and Financial Reporting issues.
Remuneration Committee	The Remuneration Committee scrutinises senior pay in the department.
Executive Board	The Executive Board provides the day-to-day leadership of the department, and has overall responsibility for executive governance in DCMS. The Board covers all operational, policy, delivery areas and the departmental budget. A Shadow Board, composed of staff from a range of grades, provides the Executive Board with staff views on a range of issues.
Finance Committee	The Finance Committee has delegated spend approval for DCMS and ALB projects (£15m+) to ensure efficiency and manage risk, providing scrutiny and assurance. Any major project over £60m will be subject to both DCMS and HMT approval.
Delivery and Risk Committee	The Delivery and Risk Committee monitors delivery performance and risks, providing oversight and assurance for DCMS policy and delivery activity, including public bodies performance.
People and Operations Committee	The People and Operations Committee monitors performance, risk, efficiency and capability of the department’s operations - providing second line, strategic oversight and assurance to people and operations projects.

Alongside the Board structures set out above, ministers and the Permanent Secretary have clearly defined responsibilities that support good governance within the departmental group through parliamentary accountability:

• The Secretary of State is responsible and answerable to Parliament for the exercise of the powers on which the administration of the department depends. They have a duty to Parliament to account, and to be held to account, for the policies, decisions and actions of the department.
• The PAO may be called to account in Parliament for the stewardship of the resources within the department’s control and the system of accountability for funding devolved to the local level.

Risk management

Strategic risks affecting delivery continue to be effectively monitored and managed at project and programme level, with strategic risks captured on the departmental Executive Risk Register, for monthly review at the Executive Board. DCMS has a specialist risk management team to oversee risk management and improve risk culture. The department’s approach to risk management follows the HM government’s Orange Book Principles.

Assurances

DCMS has an Integrated Assurance Framework which is broken into sections based upon how DCMS delivers its objectives, either through its public bodies; a project/programme, or through corporate services/functions supporting delivery. This is based on the three lines of defence model.

In addition to these three lines, various other sources of assurance come from roles outside of DCMS, including the NAO and Parliament’s Public Accounts Committee, both of whom provide independent assurance on government activities to Parliament.
DCMS reviews the adequacy and effectiveness of its assurance arrangements on an annual basis, to support the Accounting Officer when signing the annual governance statement. This review consists of reviewing second line assurance evidence; directors self-assessing the assurance arrangements in their directorate; and an organisational self-assessment. Internal audit reviews provide additional third line assurance that these arrangements are effective, and assessment of our compliance to functional standards provides further assurance.

Further details on DCMS’s risk and assurance processes are available in DCMS’s latest annual report and accounts.

Relationships with public bodies

Overview

DCMS has 42 public bodies, from world-renowned museums and galleries to broadcasters, regulators and national funding bodies, most of which are consolidated into DCMS’s own accounts. The majority of the Department’s funding goes to its public bodies and each body has a different relationship with the Department depending on its purpose, remit and level of public funding.

Public body accountability

The DCMS Permanent Secretary is Principal Accounting Officer and may, where relevant, delegate Accounting Officer responsibility under ‘Managing Public Money’ to the Accounting Officer, usually the Chief Executive Officer of the organisation in question. This is the most common outcome.

All newly appointed Accounting Officers receive a letter from the PAO confirming their appointment. This letter sets out their respective accountabilities and responsibilities in accordance with ‘Managing Public Money’, including that they are responsible for the use of resources in carrying out the public bodies functions. The appointment letters and training also provide clarity around the expectations of all parties.

On appointment, all Accounting Officers are required to attend the Civil Service Learning course, an ‘Introduction to Accounting Officer Responsibilities’, which provides a thorough understanding of propriety and regularity issues, as they affect those in public service. Additionally, the DCMS Chief Financial Officer invites them into an Accounting Officer introductory discussion, to explain the role from the departmental point of view.

The Department’s public bodies are governed by their own independent boards and each has separate governance and internal assurance structures. Further details on individual public bodies governance and internal assurance structures can be found in their Annual Report and Accounts. DCMS’s role in the governance structure of public bodies is that Ministers appoint the majority of public body non-executive board chairs and members, in accordance with the Cabinet Office’s Governance Code on Public Appointments (2024). These appointments are listed in The Public Appointments Order in Council 2023 and regulated by the Commissioner for Public Appointments. This gives DCMS oversight over the individuals who will be governing each public body. New appointees receive terms and conditions of appointment (which must be accepted before joining boards) and the Cabinet Office’s Code of Conduct for Members of Public Bodies (2019), as well as a letter from the appointing authority confirming their term dates.

DCMS’ relationship with each public body is negotiated and set out in a bespoke, published document, termed the ‘Framework Document’ (or ‘Charter’ in the case of the BBC). A Framework Document sets out the public bodies purpose and describes the governance and accountability framework, as well as setting out arrangements for departments to monitor and understand their public bodies’ strategy, performance and delivery, including financial matters. It is negotiated between DCMS and each public body, then cleared by the Public Body Board, the PAO, HM Treasury Spending Team and the Treasury Officer of Accounts. The documents are published online and deposited in the Libraries of both Houses of Parliament in line with Parliamentary Guidance. They are usually reviewed and updated at least every three years. The contents of the Framework Documents are continually monitored through a wide range of governance forums and processes, such as quarterly partnership meetings; annual Board Effectiveness Reviews and annual Chair appraisals.

Each public body is overseen by a sponsor team within DCMS. The sponsor team acts as the primary contact for the public body, in addition to monitoring and challenging its performance and supporting delivery of its policy/operational priorities. Sponsor teams promote and maintain an effective working relationship between the Department and its public bodies, in turn facilitating accountable, efficient and effective services to the public.

DCMS worked closely with the Cabinet Office during the development of the ‘Arm’s Length Bodies Sponsorship Code of Good Practice’, published in May 2022. The Department has applied the principles of the code, as appropriate, to help monitor continuous improvement in public body sponsorship capability and consistency.

Funding

The majority of funding provided by the Department to its public bodies is paid as grant-in-aid, a complete list can be found at Annex A. Some Public Bodies supplement this by income from charitable sources and/or commercial activities. Other Public Bodies are solely responsible for the distribution of Lottery funding - e.g. National Lottery Community Fund and National Lottery Heritage Fund.

Once DCMS’s funding allocations are set, DCMS determines the grant-in-aid for each public body. The public bodies are set budgetary control totals, which are caps, on different types of expenditure that cannot be exceeded. The public body is issued a delegation letter, which outlines both budgetary control totals and cash allocations.

Grant-in-aid is paid at regular intervals, usually monthly, to the public body based on forecast cash requirements and in accordance with the overall amount stated in the funding allocation letter. Forecasts of expenditure are gathered monthly to ensure that the public body is operating within their budgetary control totals. Breaches of budgetary control totals are investigated.

DCMS’ approach to public body risks

DCMS has developed an integrated risk management process which provides a consistent method for identifying, assessing, rating and monitoring public body risks that impact the Department. While responsibility for managing their own risks remains with public bodies, the department is sighted on all of these and regularly reviews in detail those which may impact DCMS should they materialise. These are scrutinised and monitored by relevant DCMS boards and committees.

Monitoring and assurance processes

All public bodies are required to comply with companies, charities and any other relevant legislation as appropriate. In addition, public bodies are required to operate management information and accounting systems that enable them to review, in a timely and effective manner, financial and non-financial performance against budgets and targets set out in corporate and business plans. This information is examined by the Department in the following ways:

• Quarterly Partnership Meetings are a formal governance process for assessing how effectively public funding is being managed by our public bodies. They are mutual avenues for sharing, supporting and challenging, and can be utilised as a forum for senior sponsors to share updates on ministerial priorities. Sponsors are responsible for these meetings, but they are also attended by functional teams, such as the Finance Business Partners, to provide financial support.
• The DCMS Finance Team has a calendar of engagement with public body finance teams. DCMS Finance attend Partnership Meetings and hold routine meetings with Public Bodies finance teams to review and challenge forecasts (those public bodies who receive grant-in-aid are required to submit forecast income and expenditure for the financial year on a monthly basis). In addition, DCMS Finance Business Partners attend or receive papers for public body Audit and Risk Assurance Committees to gain assurance about the overall efficiency and effectiveness of the organisation.
• Annual Public Body Chair Appraisals are undertaken by DCMS senior civil servants and provide an opportunity to review the effectiveness of the Chair and the Board under their leadership. They also examine whether the public body is delivering its objectives and supporting ministers’ strategic aims.
• Public Body Reviews are one of the levers by which ministers, departments and ultimately the public can influence, and be informed about public bodies and their sponsorship teams. The reviews provide assurance that the public body’s function remains useful and necessary, assess alternatives for delivering the government’s objective, ensure public bodies are operating with a clear purpose using an appropriate delivery model, and consider whether decisions are appropriately being taken and provide tangible recommendations.
• Most of DCMS’ public bodies should undertake self assessments in-line with central functional requirements. Evidence of completed reviews and the outcomes arising are reported to their respective Audit and Risk Assurance Committees. Some central functions require DCMS functional leads to also collate assurance from public bodies for central reporting.
• As a way of increasing government efficiency and collaborations, the Cabinet Office has set a series of spend controls which affect each of the functional areas of an organisation. In the case of our public bodies, DCMS functional team leads ensure that the Public Bodies comply with these controls either directly or via the Public Bodies’ Audit and Risk Assurance Committees.
• DCMS public bodies have a delegated spending authority limit approved by Parliament. All spending over those limits will need to be approved by the Treasury, as will all spending within those limits that is novel, contentious, or repercussive. This process is undertaken via the DCMS Finance Team, which is also responsible for ensuring that these limits are not breached.

The Department has a number of regular engagement forums with its public bodies.

DCMS’ public bodies

DCMS has 42 public bodies that are listed on gov.uk and can be found at Annex B.

Non-ministerial departments

Non-ministerial departments operate similarly to government departments in the functions they perform (though usually they are more specialised and not as wide ranging in the policy areas they cover). They generally cover matters for which direct political oversight is judged unnecessary or inappropriate. They act separately from any sponsoring department and are funded directly by Parliament. Their Accounting Officer is appointed by HM Treasury accountable to Parliament for its spending and performance rather than through DCMS.

Non-departmental public bodies (NDPBs)

Most of DCMS’s public bodies are NDPBs, covering a wide range of sectors including organisations like the Arts Council England and the Horserace Betting Levy Board. The majority receive grant-in-aid from the Department, and may charge for their services. They operate at arm’s length from ministers, although a minister will be responsible to Parliament for the NDPBs. Each NDPB has an independent board, an Accounting Officer (normally the Chief Executive) and a sponsor team in the Department.

NDPBs with advisory functions

These bodies consist of external (non-civil service) experts who form boards or committees to advise ministers on particular policy areas. DCMS has a number of advisory bodies that convene as required. They provide independent specialist advice (free from political control) to departments. Most of DCMS’ advisory bodies receive limited or no funding and have no permanent personnel. The Theatres Trust does however have permanent staff and a statutory role that is bound by legislation, but the Trust does not receive regular public funding apart from a small grant from Historic England. There are no formal accountability relationships in place with advisory bodies, however in the unlikely event an Accounting Officer issue arose this would be handled by the Permanent Secretary.

Public corporations

Public corporations, as defined by the Office for National Statistics (ONS) are public entities that either operate commercially or recover some or all of their costs from fees charged to customers (i.e. 50 per cent or more of costs are met from such outside income). They have substantial day to day operating independence so are seen as an institutional unit separate from the parent department.

Public body trading subsidiaries

Many of the public bodies that DCMS sponsors have wholly-owned trading subsidiaries. The accountability relationships set out in this document extend to these public bodies subsidiaries. These trading subsidiaries are recognised as investments in subsidiaries in the DCMS Group accounts.

Freedom bodies

‘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. These ‘Freedom bodies’ have been granted these flexibilities in recognition of their distinct public-facing role and hybrid public/commercial funding model. The freedoms cover financial, spend control and increases to delegated funding limits. Some main examples include:

• freedom to maintain and spend reserves of self-generated income
• the power to borrow through voted loans from sponsoring departments
• freedom to offer pay award in excess of caps set out in the Pay Remit Guidance, and freedom to opt out of the Civil Service Pension scheme for new starters
• exemptions on commercial, property, and facilities management spend controls
• exemption from advertising, marketing and communications spend controls, and other procurement flexibilities
• increases to delegated limits for digital and technology spend
• higher delegated limits for self-funded capital projects

Freedom bodies are managed in the same way as the other public bodies.

There are 19 Freedom bodies sponsored by DCMS (15 Museums and Galleries; British Film Institute, Historic England, British Library and Churches Conservation Trust, listed in Annex B).

Freedom bodies are subject to the same monitoring and assurance arrangements set out on the preceding pages. These arrangements are informed by the status of the body.

Local funding arrangements

National Lottery

The National Lottery Distribution Fund (NLDF) was established under the National Lottery etc. Act 1993. Its purpose is to receive, hold and distribute monies generated by the National Lottery for Good Causes. DCMS draws down from the NLDF to meet costs associated with administrating the National Lottery, including costs borne by the Gambling Commission (GC), the independent regulator of the National Lottery.

The Secretary of State controls and manages the NLDF. The NLDF is administered by DCMS officials and subject to all relevant DCMS oversight, assurance and governance processes and procedures. The NLDF reports to Parliament via its Annual Report and Accounts.

Monies flowing into the NLDF for Good Causes are substantially derived from the net proceeds of the National Lottery, minus operator profit and costs. The relationship between proceeds and returns to good causes is governed by the National Lottery operating licence, which is awarded by the GC. In addition, amounts received by NLDF are invested with the Commissioners for the Reduction of National Debt (CRND), which is part of the UK Debt Management Office (DMO). The relationship between DCMS and CRND is governed by a Memorandum of Understanding, which also establishes agreed procedures around payments into and out of the NLDF and their investment. Investment of NLDF monies is further governed by a Direction issued by HMT which determines the investment principles.

Money is distributed from the NLDF to the arts, heritage, sports and community sectors in proportions set out in legislation via 12 National Lottery Distributing Bodies (LDBs), listed in [Annex C]. Six of the LDBs are public bodies of DCMS, four of which have a UK- wide remit. These are subject to common DCMS Public Bodies oversight, assurance and governance structures and systems as detailed on pages 7 to 10. Under National Lottery legislation, the Secretary of State can issue Directions to these grant-giving public bodies that:

• set out the factors they must take into account in their funding decisions (policy directions)
• ensure propriety, regularity and accountability in their handling of Lottery monies drawn down (Financial Directions, which must be complied with) and
• ensure proper and separate accounting of Lottery monies (accounts directions, which must be complied with)

DCMS seeks an annual assurance from each LDB’s Accounting Officer of their compliance with the Financial Directions, and seeks confirmation of key systems of internal control in relation to their handling of Lottery monies. These assurances and confirmations contribute to assurances given in the Governance Statement of the NLDF Annual Report and Accounts.

The remaining six Lottery Distributing Bodies are public bodies of relevant devolved administrations and subject to their oversight, accountability frameworks and direction-issuing authority.

Under National Lottery legislation, the GC is responsible for awarding and regulating the National Lottery licence and it is accountable for expenditure in fulfilling these statutory functions. The GC is a Public Body of DCMS (it is an executive non-departmental Public Body) and subject to the common Public Body oversight mechanisms set out earlier in this document. It has implemented its own systems and structures to enable the effective discharge of its responsibilities. This includes the 4th National Lottery Licence Programme Board, who provide advice to the GC’s Board and Chief Executive and to discharge other functions directly under delegated authority. A framework of other subsidiary committees is established to support effective decision making, including but not limited to an Audit Committee. The GC also has recourse to enforcement action, financial penalties and, ultimately, revocation of the operating licence if it deems necessary.

The National Lottery is run by a private company under licence issued by the GC. That company is required to operate the licence via a UK-based special purpose vehicle. Allwyn Entertainment Ltd took over operation of the National Lottery on 1 February 2024. It will report on its National Lottery operations, systems of oversight and administration, via annual published group and company financial statements.

Dormant assets

The Dormant Assets Scheme is underpinned by two Acts: the Dormant Bank and Building Society Accounts Act 2008 (‘the 2008 Act’) and the Dormant Assets Act 2022 (‘the 2022 Act’). These Acts enable firms from eligible sectors (currently banking, insurance and pensions, investment and wealth management, and securities) to transfer dormant financial assets to Reclaim Fund Ltd (RFL), a HM Treasury Public Body. RFL is required to hold sufficient funds to meet reclaims from owners in perpetuity, while the surplus is used to benefit good causes. Participation in the Scheme is voluntary.

The 2008 Act also named Big Lottery Fund (now known as The National Lottery Community Fund, NLCF) as the distributor of this surplus, requiring it to distribute dormant assets money across the UK for meeting expenditure that has a social or environmental purpose. RFL therefore transfers all surplus dormant assets’ monies to NLCF.

NLCF apportions the money it receives from RFL between the four nations of the UK, according to percentages set out in secondary legislation. Each of the four national governments can issue policy directions to NLCF setting out the funding priorities for the distribution of its share of this money. The Secretary of State for DCMS has the power to issue directions to NLCF for the English portion of funds only.

In England, The Dormant Assets (Distribution of Money) (England) Order 2023 – was passed in November 2023. The Order repeals section 18 of the 2008 Act, which previously restricted dormant assets expenditure in England to three purposes: meeting the needs of young people (services, facilities, opportunities); improving financial inclusion (access to financial services or the ability to manage one’s own finances); or issuing to a social investment wholesaler (for subsequent funding projects with a social or environmental purpose). The Order ensures that these three causes remain purposes of dormant assets funding in England and adds a fourth cause: community wealth funds, defined as a fund which gives long term financial support (whether directly or indirectly) for the provision of local amenities or other social infrastructure. The government is currently considering responses to a technical consultation on the design of the community wealth fund and have announced that NLCF will directly deliver this new initiative, with implementation expected to begin in 2025.

To date, DCMS has issued policy directions to NLCF for various allocations of the English portion to be distributed to four independent organisations operating under the original three causes: Youth Futures Foundation (for youth projects); Fair4All Finance (for financial inclusion projects); and Big Society Capital and Access – The Foundation for social investment (as social investment wholesalers).

Where the awarding of grants has been delegated to a third party, the necessary due diligence is carried out to ensure that the third party has the appropriate systems in place and that the arrangement is monitored on an ongoing basis. This included a ‘fit and proper’ test conducted by DCMS and NLCF on both Youth Futures Foundation and Fair4All Finance at their establishment in 2019. Responsibility for the oversight of these four organisations sits with The Oversight Trust – Assets for the Common Good (previously known as Big Society Trust). The Oversight Trust has governance agreements in place with each of the four organisations, with NLCF as a signatory, to provide it with the power to ensure the entities are governed appropriately, act according to their objects, and distribute dormant assets funding in line with legislation.

In line with the governance agreements, The Oversight Trust conducts regular reviews of the organisations and provides DCMS with copies of the letters it sends to each organisation to summarise its findings annually. It also commissions and publishes an independent review of each organisation’s impact on a quadrennial basis. The first of these reviews was published on Big Society Capital in 2020, with Access – the Foundation for Social Investment following in 2021, and Fair4All Finance in January 2023. The review of the Youth Futures Foundation was published in December 2023 and the review of Big Society Capital was published in January 2025.

Third party delivery partnerships

DCMS works with a number of partner organisations to meet its objectives and deliver services to the public. Any significant third-party delivery arrangements that the department has in place are managed within our management of grants, the contract relationships or the investments, joint ventures and other assets section as described in this document.

Grants to public, private and voluntary sector bodies

DCMS and its public bodies (including the Lottery distribution bodies) provide grants for specific purposes to a wide range of public, private and third sector organisations. Whilst a range of different grants and grant-making exist, this section provides an overview of the systems that are in place. These systems are in line with the government grants minimum standards as set out in the Grants Functional Standard.

DCMS and its public bodies as grant-providing bodies have developed systematic approaches in operating their grant schemes.

Within DCMS, schemes are developed by directorates. Each scheme is required to have a proportionate business case and sign off of the business case is required both within the directorate and also externally. The level of sign off is primarily driven by the value of the funding distributed and the sign off structure is as follows:

• Up to £1 million- Senior Officer Responsible (SOR Deputy Director level and above) plus the Finance Business Partner.
• £1 million to £5 million - Deputy Director Finance Business Partner and relevant SOR.
• Between £5 million and £15 million - SOR and Investment sub Committee chaired by Deputy Director, Finance
• Above £15 million - SOR and Finance Committee chaired by Director Finance and Commercial.

Whilst value is the key determinant, decisions can be escalated upwards based on the complexity/risk of the scheme or whether it is considered novel and contentious,

DCMS’ approach to grant making and grant management is set out in a Grant Strategy which is reviewed on an annual basis.

The responsibility for management and delivery of each grant lies with the relevant SOR and each SOR is required to undertake relevant training to demonstrate they have the necessary understanding to undertake the role.

Whenever a grant is approved within DCMS, as part of the grant approval process consideration is given to the amount of resource required to manage the grant and to ensure that sufficient resources are in place.

Where appropriate, ministerial engagement is also sought throughout the policy development process.

The Board of each public body develops a strategic framework, which provides guidance for determining the funding programmes (the types of grants that are available) and for awarding grants. Business cases are put forward proportionate to the value of the schemes for approval by a separate committee appointed by the public body. However, in the case of exchequer funded schemes delivered by a public body on behalf of DCMS, these remain subject to DCMS governance processes.

Where the grant-providing body considers grants are novel, contentious or medium or high risk, or when specific issues or questions relating to the scheme need addressing, the Government Grants Management Function’s Complex Grants Advice Panel (CGAP) is approached for advice as per the government grants minimum standards. In certain cases review by CGAP is a mandatory requirement.

Usually, organisations will apply for grants by completing an application form following a call for competition, although in a limited number of cases a direct award without competition may be more appropriate. Through the application form, the grant providing body collects information in respect of the organisation and the project that requires funding. The level of information required will be dependent on the size and purpose of the grant, but will include information on why the project is needed, the people it will benefit and how the organisation proposes to achieve its outcomes. Supporting documentation is requested to assess the authenticity and viability of the organisation and proportionate due diligence is carried out on each potential applicant.

This information is reviewed and validated to minimise fraud and to ensure the organisation has the appropriate experience and governance to manage public funds. The grant-providing body will also consider any past experiences with the organisation and the integrity of individuals involved with the organisation using cross government systems such as the Government Grants Information System.

The appointed committee (or those delegated with authority such as policy teams within DCMS) assess eligible grant applications against the body’s strategic framework and the advertised requirements of the scheme and determine successful applications through fair and open evaluation. Funding agreements - compliant with the Cabinet Office Model Grant Funding Agreement - are signed by both parties to establish the terms and conditions of the grant.

Where the awarding of grants has been delegated to a third party, a relevant legal agreement is signed to extend the responsibilities of the grant providing body to the third party. Where the third party is another public body, this is usually undertaken through a Memorandum of Understanding (MoU).

As grants are provided for a specific purpose, the grant recipient needs to have the appropriate monitoring systems in place to ensure that the grant is used in accordance with the agreed purpose as set out in the grant agreement. Monitoring forms will be issued to grant recipients periodically to obtain declarations from the organisation on progress of the project and confirmation of how the grant has been spent. In respect of large grants, and those deemed novel or high risk, financial records and other documentation in respect of the project may be requested.

The grant-providing bodies gain assurance on the systems in place for its grants schemes through internal reviews. Each public body’s board receives reports on funding programmes to ensure they align with the strategic framework. Senior management teams have regular meetings to discuss operational matters and risk management, and are assisted by an Audit and Risk Committee (or similar).

As part of the cross government Grants Maturity Self Assessment, introduced in 2020, Internal Audit teams review and provide further assurance in respect of the controls in place for managing the grant schemes. In respect of DCMS this is carried out by the Government Internal Audit Agency. These reviews provide the PAO with assurance that the grant schemes, and therefore public funds, are well-managed, and that DCMS and its grant making public bodies are meeting the minimum requirements of the Grants Functional Standard.

Major contracts and outsourced services

The Core Department enters into commercial arrangements with third party suppliers to enable the development of policy and delivery of key government programmes, where necessary. The Chief Commercial Officer is responsible for the oversight of procurement and commercial activity.

A key objective of the Department’s commercial strategy is to achieve best value, delivering the right quality at a competitive price, whilst maintaining compliance with commercial policy and regulations and effectively managing risk. The following governance arrangements seek to achieve this objective:

• Robust procurement procedures ensure compliance with the Public Contracts Regulations 2015 (PCR 2015) and preparation for the new Procurement Act 2023 regime (scheduled for commencement in February 2025) and all requirements over £5,000 (excluding VAT) are subject to competition ahead of award;
• Consideration and use of central government frameworks is mandated as the route to market where possible and appropriate for the particular requirements, allowing the Department to benefit from the collective purchasing power of the government and preferential market rates;
• In exceptional circumstances, where competition is not possible or appropriate in line with the PCR 2015, a strict governance process is followed with robust justification provided in a Single Tender Action form;
• All contracts have a dedicated Contract Manager within the business area (policy/programme team) responsible for contract delivery to ensure contract deliverables are achieve, on time, within budget and to the required standards;
• All major projects have an identified Senior Responsible Owner, who is responsible for project delivery, risk management and budget;
• High risk and high value contracts, classified in accordance with contract management best practice, are managed in accordance with internal commercial policy with contract and supplier risk escalated through the department’s risk management structure, to the appropriate governance boards, as necessary;
• Specialist commercial and procurement support is delivered to core DCMS and arms length bodies as required, advising on and assuring complex commercial activity;
• Compliance with commercial governance arrangements is overseen and assured by the Commercial Governance and Commercial Assurance teams to sustain compliance with the Government Commercial Operating Standards across the Department.

The governance structures set out above are regularly reviewed by the Commercial function and the Chief Commercial Officer, as Head of the Profession within DCMS. The Commercial Blueprint process is undertaken with the Government Commercial Function on a biannual basis to set the Department’s commercial strategy.

Core Department: business services

In delivering its core services, the Department has outsourced certain business processes to improve efficiency and deliver a managed service to the Department. The Department has engaged MHR International UK Limited to provide human resources and payroll software and a managed payroll service. The Supplier was appointed following a competitive procurement process under Crown Commercial Services Framework.

In addition, the Department works closely with Historic England, a public body of DCMS, to provide a transactional finance system and service management. The Department uses the finance system to manage the issuing of purchase orders and payment of supplier invoices.

As part of the government’s shared services, strategy, the Department is part of the matrix cluster of departments and will be entering into arrangements with other departments to procure and implement a new financial and HR system from the summer of 2026.

National Westminster Bank provides a key service to the Department in the form of Government Procurement Cards and were appointed via Crown Commercial Services Framework, Payment Solutions. Government Procurement Cards are utilised to purchase low value, low risk items and improve procurement efficiency.

Alexander Mann Solutions is the managed service provider for contingent labour and is used across the Department for the recruitment of the majority of interim contractors and temporary staff. A dedicated contract manager is responsible for service delivery and monitors supplier performance. The Supplier was appointed via Crown Commercial Services Framework, Public Sector Resourcing.

The Gambling Commission

The GC is the independent regulator of commercial gambling in Great Britain and of the UK National Lottery. It uses its licensing responsibilities to keep gambling fair, crime-free and to protect the vulnerable.

As set out in the local funding arrangements, the Commission is responsible for awarding a licence to operate the National Lottery and for its ongoing regulation. The licence holder for the previous licence (3NL) was Camelot UK Lotteries Ltd. The GC awarded the fourth national lottery licence (which commenced on 1 February 2024) to Allwyn Entertainment Limited. DCMS was not involved in the competition decision-making process and was not party to the legal challenges to the fourth licence, but it approves expenditure on the licence process.

Investments, joint ventures and other assets

Many of DCMS Public Bodies (notably the BBC) have wholly owned subsidiaries. A full treatment of heritage assets is available in DCMS’ latest annual report and accounts

The core department includes the loan book for certain COVID-19 support packages (such as the Cultural Recovery Fund and Sports Survival Package). Further details are available in DCMS’ latest annual report and accounts.

Annex A: Public bodies funding paid as grant-in-aid

	2023-24	2022-23
	£’000	£’000
Arts Council England	495,330	524,307
Birmingham 2022*	-	271,922
BBC PSB Group	3,674,531	3,751,200
British Film Institute	25,205	34,515
British Library (includes Public Lending Right)	127,815	116,542
British Museum	70,140	67,767
Churches Conservation Trust	2,955	2,903
Gambling Commission (for regulation of the National Lottery)	14,440	21,817
Gambling Commission (other)	-	740
Geffrye Museum Trust Limited (Museum of the Home)	1,945	2,908
Historic England	102,456	111,227
Horniman Public Museum and Public Park Trust	5,019	7,686
Imperial War Museum	33,572	33,204
National Citizen Service Trust	48,420	68,995
National Gallery	28,858	30,714
National Heritage Memorial Fund	18,000	-
Royal Museums Greenwich	21,395	19,955
National Museums Liverpool	29,569	26,277
National Portrait Gallery	10,985	18,623
Natural History Museum	68,588	65,888
Royal Armouries Museum	8,564	8,684
S4C	-	-
Science Museum Group	59,584	80,293
Sir John Soane’s Museum	1,528	1,538
Sport England	191,983	113,571
Sports Grounds Safety Authority	1,711	1,664
Tate Gallery	50,792	54,158
UK Anti-Doping	9,101	9,563
UK Sport	81,797	90,382
Victoria and Albert Museum	56,934	67,452
Visit Britain	52,443	48,145
Wallace Collection	4,353	4,492
Sub-total Grant-in-Aid	5,298,013	5,657,132

*Birmingham Organising Committee for the 2022 Commonwealth Games entered liquidation on 15 March 2023. Source: 23-24 DCMS annual report and accounts, Note 4.1.1 Grant-in-Aid to ALBs.

Annex B: Public bodies

Non-ministerial department

• The Charity Commission
• The National Archives

Executive non-departmental public body

• Arts Council England*
• British Film Institute*
• British Library*
• British Museum*
• Gambling Commission
• Historic England*
• Horniman Public Museum and Public Park Trust*
• Horserace Betting Levy Board
• Imperial War Museum*
• Museum of the Home*
• National Gallery*
• National Heritage Memorial Fund
• The National Lottery Community Fund
• National Museums Liverpool*
• National Portrait Gallery*
• Natural History Museum*
• Royal Armouries Museum*
• Royal Museums Greenwich*
• Science Museum Group*
• Sir John Soane’s Museum*
• Sport England
• Sports Grounds Safety Authority
• Tate*
• UK Anti-Doping
• UK Sport
• Victoria and Albert Museum*
• VisitBritain
• VisitEngland
• Wallace Collection

Advisory non-departmental public body

• The Advisory Council on National Records and Archives
• The Reviewing Committee on the Export of Works of Art and Objects of Cultural Interest
• The Theatres Trust
• Treasure Valuation Committee

Public corporation

• BBC
• Channel 4
• Historic Royal Palaces
• Royal Parks

Other

• Churches Conservation Trust*
• National Citizen Service
• S4C

*public body with operational freedoms

Annex C: National Lottery Distributing Bodies

• Arts Council England
• The National Lottery Heritage Fund
• UK Sport
• sportscotland
• Creative Scotland
• Sport England
• Arts Council Northern Ireland
• Sport Northern Ireland
• British Film Institute
• Arts Council Wales
• Sport Wales
• The National Lottery Community Fund