Framework document between the Department of Health and Social Care and the UK Health Security Agency

Question 1

1.  Introduction and background

Accepted Answer

Purpose of document

1.1 This framework document (the “framework document”) has been agreed between the Department of Health and Social Care (“the department’’) and the UK Health Security Agency (“UKHSA’’) in accordance with HM Treasury’s handbook Managing Public Money (“MPM”) (as updated from time to time) and has been approved by HM Treasury.

1.2 The framework document sets out the broad governance framework within which UKHSA and the department operate. It sets out UKHSA’s core responsibilities; describes the governance and accountability framework that applies between the roles of the department and UKHSA, including the role of the Chief Medical Officer (CMO), and the relationship with other parties as relevant including the NHS, other arm’s length bodies (ALBs), local authorities, and the devolved administrations; and sets out how the day-to-day relationship works in practice, including in relation to governance and financial matters.

1.3 This framework document does not purport to have legal effect, but both the department and UKHSA agree to operate within its terms.

1.4 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 gov.uk.

1.5 This framework document will be reviewed and updated at least every 3 years, save in exceptional circumstances as agreed with HM Treasury and the department Principal Accounting Officer. The latest date for review and updating of this document is October 2024. Given that UKHSA is a new body, and that this document will be published during its establishment phase, the department may decide to bring that date forward, for example to reflect spending review outcomes or further discussions across government and the health system on arrangements to secure effective prevention and response to future pandemics.

Objectives

1.6 UKHSA has been established to respond to the need for strong national leadership on health protection, an integrated response across public health professional, scientific and operational functions, and for the right capability in the public health system. UKHSA will have a global-to-local reach, combining leading-edge science and analytics, insightful planning and responsive operational excellence; with the aim of securing public health benefits for the whole of the UK through its leadership on health security.

1.7 As an executive agency, UKHSA is able to balance the needs for public health expertise, operational delivery, scientific integrity, independence in the delivery of policy advice and the necessary level of ministerial oversight and accountability to command public confidence. Executive agency status also supports sufficient flexibility to respond to change arising from a range of scenarios including future pandemics and other emergencies, in fulfilment of the Secretary of State’s statutory duties.

1.8 UKHSA and the department will work together in recognition of each other’s roles and areas of expertise, providing the right conditions for UKHSA to achieve its objectives through the promotion of partnership and trust and ensuring that it supports the strategic aims and objectives of the department and wider government as a whole.

Classification

1.9 UKHSA has been classified as a central government organisation by the ONS and HM treasury classifications team.

1.10 It has been administratively classified by the Cabinet Office as an executive agency.

Question 2

2.  Purposes, duties and aims

Accepted Answer

Purposes

2.1 UKHSA has been established by the Secretary of State for health and social care as this country’s permanent standing capacity to prepare for, prevent and respond to infectious diseases and other threats to health.

Powers and duties

2.2 In performing its role, UKHSA fulfils the Secretary of State for health and social care’s statutory duty to protect the nation’s health and address inequalities.

2.3 UKHSA and the department have specific responsibilities for planning for and managing the response to emergencies and health protection incidents and outbreaks in an extended team that works across government. UKHSA exercises specific functions on behalf of the Secretary of State under the National Health Service Act 2006, the Health and Social Care Act 2012 and the Civil Contingencies Act 2004 (as set out in Annex A and as further notified [in writing] to UKHSA by the Secretary of State). The Secretary of State has cross-government responsibility to provide assurance on the health system’s emergency preparedness.

2.4 UKHSA provides government, local government, the NHS, Parliament, public health professionals, social care settings, academia, industry and the public with evidence-based professional, scientific and delivery expertise and support, and will carry out the statutory functions and duties of the Secretary of State set out in Annex A and as further notified by the Secretary of State to UKHSA in the remit letter or otherwise in writing.

Aims

2.5 UKHSA’s strategic aims, set out in the remit letter, are to:

prevent: anticipate threats to health and help build the nation’s readiness, defences and health security
detect: use cutting edge environmental and biological surveillance to proactively detect and monitor infectious diseases and threats to health
analyse: use world-class science and data analytics to assess and continually monitor threats to health, identifying how best to control and mitigate the risks
respond: take rapid, collaborative and effective actions nationally and locally to mitigate threats to health when they materialise
lead: lead strong and sustainable global, national, regional and local partnerships designed to save lives, protect the nation from public health threats, and reduce inequalities

2.6 UKHSA will form an essential part of the UK’s national security infrastructure, helping to protect the country from societal and economic shocks arising from pandemics and other external threats to health.

2.7 UKHSA will play a key role in providing assurance of the preparedness of the wider health protection system for future public health emergencies, including pandemics. This will bring together a comprehensive understanding of the nature of potential threats to health and UKHSA’s insight into the strengths and challenges of the wider system. It will complement the role of the civil contingencies secretariat in managing the national security risk assessment process and of DHSC in stewarding the health and care system. Supplementary documentation will set out specific responsibilities for UKHSA and other key players, considering activities such as effective emergency planning, development and delivery of national exercises, identification of actions for improvement and the co-ordination of emergency response.

2.8 UKHSA will provide a focus for the ambition to lead the creation of a stronger global health protection system. It will play a strong role in global health security, since global and domestic health security are closely connected, through links to surveillance and detection beyond our borders and ongoing collaboration and information sharing with international partners, with surge capacity and capability to control and contain public health threats should they reach our shores.

2.9 UKHSA will deliver UK-wide functions in line with its remit, and those that are carried out under collaborative arrangements. UKHSA will develop and sustain strong partnerships both locally and nationally across the devolved administrations as the whole of the UK works together to improve health security and respond to the remaining stages of the COVID-19 pandemic.

2.10 UKHSA will contribute to the government’s equality objectives, and to ensuring a post-COVID-19 health system that is fairer and more resilient. It will ensure a rigorous focus on reducing inequalities in the way that different communities experience and are impacted by infectious disease, environmental hazards, and other threats to health. It will target action towards disproportionately affected groups and work to understand ever better the needs of citizens, building that into the design and continuous improvement of services.

Relationships with the department’s other arm’s length bodies and delivery partners

2.11 UKHSA works in partnership with global health security organisations, the department’s other ALBs, the NHS, local government, academia and industry, and the voluntary and community sector in the interests of patients, people who use services and the public, to protect the health of the nation from infectious diseases and other external threats to health.

2.12 The department and its ALBs have complementary but distinct roles within the system, and DHSC and UKHSA will work in close partnership to ensure that service users receive high quality services which deliver value for money.

2.13 UKHSA has a leadership role in protecting the public’s health, supporting the public health system to be ready for threats through working constructively with the department, including the Office for Health Improvement and Disparities, NHSX (lead on health and social care data policy), central government departments, local government, devolved administrations, the wider NHS and health and social care partners.

2.14 UKHSA is also to be a strong national voice on the global stage, working in partnership with other parts of the nation’s health system to support effective working at an international level.

Question 3

3.  Role of the department

Accepted Answer

The responsible minister

3.1 The Secretary of State and junior minister with lead responsibility for UKHSA have ministerial responsibility for, and oversight of, UKHSA delivery and performance as an integral part of the public health system. This includes being accountable to Parliament in relation to the functions and performance of UKHSA. This is in the context of their responsibility for setting national priorities and monitoring the whole system’s performance to ensure it delivers what patients, service users and the wider public need and value most – and determining resource allocations across the health system.

3.2 The Secretary of State’s specific responsibility regarding UKHSA includes:

setting objectives for UKHSA through an annual remit letter (“the remit letter”) and approval of the business plan and longer-term strategic plan
supporting the integrity of the system by ensuring that UKHSA’s funding, legislation and accountability arrangements protect the best interests of health service users, the public and the taxpayer
accounting to Parliament for UKHSA’s performance and the effectiveness of the health and care system overall
responsibility for the policy framework within which UKHSA operates
providing guidance and direction to ensure the strategic aims and objectives of UKHSA are consistent with those of the department and government
appointing UKHSA’s chair and non-executive members; in line with the governance code on public appointments

The principal accounting officer (PAO)

3.3 The principal accounting officer (PAO) is the Permanent Secretary of the department.

Principal accounting officer’s specific accountabilities and responsibilities

3.4 The PAO of the department has designated UKHSA’s chief executive as UKHSA’s accounting officer, ensuring they are fully aware of their responsibilities. The PAO issues a letter appointing the accounting officer, setting out their responsibilities and delegated authorities.

3.5 The respective responsibilities of the PAO and accounting officer are set out in chapter 3 of Managing Public Money.

3.6 The PAO is accountable to Parliament for the issue of funding to UKHSA.

3.7 The PAO is also responsible for advising the Secretary of State on:

the strategic aims and objectives of UKHSA so that they are consistent with those of the department and government through the remit letter and approval of the strategic plan and annual business plan
an appropriate framework of objectives, KPIs and targets for UKHSA in light of the department’s wider strategic aims and priorities
an appropriate budget for UKHSA in light of the department’s overall public expenditure priorities
how well UKHSA is achieving its strategic objectives and whether it is delivering value for money

3.8 The PAO is also responsible for ensuring arrangements are in place in order to:

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

3.9 The Permanent Secretary appoints a director general, currently the director general for global health, as the senior departmental sponsor (SDS) who acts as UKHSA’s designated, consistent point of contact within the department and manages their overall relationship with the department, supported by the department’s sponsor team (see below). The senior departmental sponsor acts as the link at executive level between UKHSA and the senior officials of the department, and between UKHSA and ministers. They are the main source of advice to the responsible Minister on the discharge of his or her responsibilities in respect of UKHSA.

3.10 While the senior departmental sponsor role is facilitative and recognises the need for direct engagement between UKHSA and other parts of the department and ministers, it also supports the Secretary of State and Permanent Secretary in holding UKHSA to account. The senior departmental sponsor is also responsible for agreeing the objectives for and reviewing the contribution of the UKHSA chair.

3.11 The department’s UKHSA sponsor team is the department’s primary contact for UKHSA, and supports the SDS, liaising regularly with counterparts in UKHSA to support effective corporate relationships and co-ordinate assurance and accountability functions.

3.12 To support the SDS, the sponsor team will work alongside the department’s finance directorate, which will act as the departmental finance business partner to UKHSA. They will be responsible for setting the governance and the oversight of financial management and accounting, planning and reporting, spending approvals, and managing the department’s financial interests in UKHSA.

3.13 Officials of the department’s UKHSA sponsor team will liaise regularly with UKHSA officials to review performance against plans, achievement against targets and expenditure against its funding allocations. The team will also take the opportunity to explain wider policy developments that might have an impact on UKHSA.

The sponsor team’s responsibilities include:

enabling ministers and Parliament to have effective oversight of UKHSA
supporting working relationships between the department and UKHSA highlighting wider policy developments that may impact on them, facilitating policy discussions, troubleshooting and resolving live issues
developing the annual remit letter that sets out the government’s priorities for the organisation for the financial year
ensuring that clear accountability arrangements are in place between UKHSA and the department; co-ordinating processes for assuring and constructively challenging progress against the UKHSA business plan and effective management of finances and risks; and feeding into wider accountability and governance processes within the department
championing UKHSA within the department, across government and internationally, helping ensure that the agency builds the right relationships and connections to allow it to deliver its remit effectively and efficiently

3.14 The working relationship between the sponsor team and UKHSA will support the necessary level of oversight to hold UKHSA to account, gain assurance regarding the proper discharge of its functions, and ensure alignment with departmental objectives; while ensuring a proportionate approach which permits UKHSA to implement its work efficiently, effectively and with full scientific integrity. Section 4 details the accountability and assurance arrangements which will underpin the relationship.

Dispute resolution

3.15 In the event of any disagreement, the first point of escalation will be to seek agreement between the chief executive and the SDS (sponsor director general); if required, the matter can then be further escalated to the Permanent Secretary. The ultimate arbiter will be the Secretary of State, who will make a final decision.

Freedom of information requests

3.16 UKHSA is responsible for addressing all requests made to it under the Freedom of Information Act 2000, the Data Protection Act 2018 and associated statutory information access requests. UKHSA and DHSC shall consult prior to any disclosure of information that may affect the other party’s responsibilities.

Communications responsibilities and transparency

3.17 The department and its ALBs have agreed a set of principles to enable co-operative and collaborative working between the department and its ALBs on all aspects of communication and marketing activities.

3.18 UKHSA carries out its activities transparently. It demonstrates this by proactively publishing its annual report, business plan and accounts as well as information on areas including pay, diversity of the workforce, performance, the way it manages public money and the public benefits achieved through its activities, by supporting those who wish to use the data by publishing the information within guidelines set by the Cabinet Office and by holding open board meetings.

3.19 UKHSA has operational autonomy. It operates transparently and proactively and provides government (including ministers directly), local government, the NHS, Parliament and MPs, industry, public health professionals and the public with expert, evidence-based information and policy advice on health security matters. UKHSA can publicly set out its professional, scientific and objective judgement of the evidence base relating to matters of health security.

3.20 For individual members of staff (including secondees, fixed-term and temporary appointees and contractors) and members of the advisory board, the UKHSA code of conduct sets out their freedoms and responsibilities in presenting the evidence, providing professional and scientific advice and representing UKHSA. Ministers remain responsible and accountable for policy decisions.

3.21 As such, UKHSA shall be free to publish information it obtains from any source. Examples include publication of relevant research and advice from scientific committees, peer-reviewed research and advice on specific public health harms and hazards.

3.22 Where appropriate, such analysis shall have the status of national statistics or official statistics and shall be subject to the code of practice for official statistics. However, information and data shall not be published if to do so would contravene an express restriction in legislation or confidentiality obligations protected by common law.

3.23 In working together, UKHSA and the department respect each other’s distinctive and complementary roles in relation to health security. UKHSA recognises the department’s lead role in developing government policy, just as the department recognises UKHSA’s role as its principal partner in health protection policy development, its professional and scientific expertise, its delivery capability, and its mission to operate in line with the best available evidence.

3.24 While UKHSA will co-operate with the department and others in the co-ordination of planned announcements, it will not be required to clear the contents of its professional and operational announcements with the department or any other agency in advance.

3.25 UKHSA, as with the department and all its ALBs, has whistleblowing policies and procedures in place that comply with the Public Interest Disclosure Act 1998 and best practice guidance. It prohibits the use of confidentiality clauses that seek to prevent staff from speaking out on issues of public interest.

Question 4

4.  Accountability and assurance arrangements

Accepted Answer

Remit and process for setting objectives

4.1. The department shall set out the government’s priorities formally to UKHSA in an annual remit letter from the minister with responsibility for health security. The department will consult with UKHSA in preparing these priorities, and they will be discussed as part of the ministerial annual accountability meeting. The priorities will be aligned to the department’s wider objectives including as set out in the department’s outcome delivery plan and be informed by the resources made available to UKHSA.

4.2. UKHSA will produce a business plan before the start of each financial year demonstrating how it will deliver its overall objectives, core functions and the government’s priorities as per the annual remit letter. The department will provide guidance to support the annual planning process, which will include target budgets covering administration, programme, revenue and capital funding. The draft plan will be shared in sufficient time to facilitate comment from and agreement by the department’s ministers.

4.3. The department shall ratify the business plan for each financial year and confirm in writing to UKHSA the revenue and capital spending delegated limits that will apply in delivering the set priorities.

Reviewing performance

4.4. The PAO’s oversight of UKHSA’s performance relies upon the provision of information, and processes to enable both parties to review performance.

4.4.1. The information provided to the department by UKHSA includes (not an exhaustive list):

performance reports against a set of metrics agreed between the department and UKHSA, including as a minimum:
reporting on public health outcomes at least annually
quarterly reports on action to reduce health inequalities
quarterly performance reports on priority programmes
quarterly reviews of public health risk and issues
assurance reports prepared for UKHSA’s executive committee and UKHSA audit and risk committee, including:
corporate risk management reporting
in-year reporting and year-end performance against budgetary controls, based on the monthly financial reporting system
emergency preparedness, resilience and response

4.4.2. The processes in place to enable the department and UKHSA to review performance include:

UKHSA’s chief executive meeting formally with ministers on a regular basis. There shall also be an annual accountability meeting to review the performance and strategic development of UKHSA, and discuss the annual report and inform the next set of priorities and objectives, which shall be chaired by the minister with responsibility for health security
quarterly accountability meetings chaired by the department’s SDS and attended by the chief executive of UKHSA together with the UKHSA senior executive team and the department’s directors. The focus of the meeting will be on strategic issues and any issues of delivery which the SDS believes it is appropriate to raise, including compliance with this document. Each quarter, the department shall review UKHSA’s:
contribution against the priorities set out in the annual remit letter and progress against the UKHSA business plan
performance metrics
governance and risk management (risks and action plan, plus annual review of risk management arrangements)
strategic risks and issues
financial performance
the relationship between the department and UKHSA, and any other key issues identified in delivery of the department’s priorities
at least quarterly finance performance meetings and from time to time other periodic meetings, with the UKHSA finance director and senior executive team and the department’s directors
the Permanent Secretary undertaking the annual appraisal of the UKHSA chief executive, taking account of feedback from the UKHSA board
the department’s SDS undertaking the annual appraisal of the UKHSA chair

4.5. UKHSA shall prepare an annual report which describes its performance against objectives and its use of public funds. The report shall be approved by UKHSA’s chief executive, via the board, prior to its submission to the department and being laid before Parliament.

4.6. In addition, the chair of the board shall have their own section in the report in which they may set out their independent view on the working of UKHSA. The chair is also responsible for annually agreeing objectives and reviewing the performance of UKHSA’s non-executive board members.

Reporting on legal risk and litigation

4.7 UKHSA shall provide a quarterly update to the department on the existence of any active litigation and any threatened or reasonably anticipated litigation where such litigation involves significant legal or reputational risk to the Secretary of State, including judicial review. This recognises the importance of ensuring that legal risks are communicated appropriately to the department in a timely manner.

4.8 In respect of each matter involving UKHSA which is to be reported to the department in accordance with 4.7, 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 department to facilitate this. Until such time as a protocol is agreed, the parties shall ensure that:

material developments in the litigation are communicated to the department in an appropriate and timely manner
legally privileged documents and information are clearly marked as such
individual employees handling the legally privileged documents are familiar with the principles to which they must adhere to protect legal privilege
circulation of privileged information within government occurs only as necessary

Sustainability

4.9 UKHSA will play a key role in driving forward the public sector commitment to sustainable development, a carbon net zero estate and for a sustainable healthy future. This will be achieved through compliance with the latest Greening Government Commitments, a Sustainable Development Management Plan (SDMP) and other initiatives aligned with the UN’s Sustainable Development Goals.

Question 5

5.  UKHSA governance and structure

Accepted Answer

Governance and accountability

5.1. UKHSA shall operate corporate governance arrangements that, as far as is practicable and in the light of the other provisions of this framework document, or as otherwise may be mutually agreed, accord with good corporate governance practice and applicable regulatory requirements and expectations. In particular (but without limitation), UKHSA should:

comply with the department’s code of business conduct, which is based on the requirements set out in the Civil Service Code and the Civil Service Management Code, when conducting its official business
comply with the principles of good corporate governance set out in Annex A of part 3 of the Cabinet Office Public Bodies Handbook and in line with their statutory duties, or specify and explain any non-compliance in its annual report
comply with Managing Public Money
in line with Managing Public Money, have regard to the relevant Functional Standards as appropriate, and in particular those concerning finance, commercial or counter fraud
take into account the codes of good practice and guidance set out in Annex B of this framework document, as they apply to ALBs

5.2. In line with Managing Public Money Annex 3.1, UKHSA shall provide an account of corporate governance in its annual governance statement, including the board’s assessment of its compliance with the code of good practice and with an explanation of any relevant departures from that. To the extent that UKHSA does intend to materially depart from the code, the department should be notified in advance, and their agreement sought to this approach.

The chief executive

5.3. The chief executive of UKHSA is responsible for the leadership and management of UKHSA and the delivery of its objectives, and shall put in place appropriate governance arrangements and regularly review them.

5.4. The chief executive is supported by an advisory board (“the board”), composed of a non-executive chair and both non-executive and executive members.

5.5. The chief executive has an unfettered right of access to the Secretary of State, minister with responsibility for health security and chief medical officer to raise any matters or concerns and to respond personally to any issues they wish to raise.

Appointment of the chief executive

5.6. The chief executive of UKHSA was selected by the Prime Minister following a recruitment process chaired by the Civil Service commissioner. This process was governed by the Civil Service commission’s recruitment principles and is in line with Permanent Secretary-level appointments across the Civil Service.

Responsibilities of the UKHSA chief executive as accounting officer

5.7. The chief executive as accounting officer 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 UKHSA. In addition, they should ensure that UKHSA is run on the basis of the standards, in terms of governance, decision-making and financial management, that are set out in Box 3.1 of Managing Public Money. These responsibilities include those outlined below and those that are set out in the accounting officer appointment letter issued to them by the principal accounting officer of the department.

5.8. If the chief executive is of the view that to fulfil their duties it is necessary to undertake a course of action involving a transaction which the chief executive considers would infringe the requirements of propriety or regularity or does not represent prudent or economical administration, efficiency or effectiveness, is of questionable feasibility, or is unethical the chief executive in their role as accounting officer should bring the matter to the attention of the principal accounting officer and the responsible minister as soon as possible

5.9. If the responsible minister agrees with the proposed course of action it may be appropriate for the minister to direct the chief executive in the manner as set out in Manging Public Money paragraph 3.4 onwards.

Responsibilities for accounting to Parliament and the public

5.10. Accounting officer 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 guidance and directions issued by the Secretary of State
preparing and signing a governance statement covering corporate governance, risk management and oversight of any local responsibilities, for inclusion in the annual reports and accounts
ensuring that effective procedures for handling complaints about UKHSA in accordance with parliamentary and health service ombudsman’s principles of good complaint handling are established and made widely known within UKHSA and published on its website
acting in accordance with the terms of this document, Managing Public Money and other instructions and guidance issued from time to time by the department, HM Treasury and the Cabinet Office
ensuring that as part of the above compliance, they are familiar with and act in accordance with:
this framework document
any delegation letters
any elements of any settlement letter issued to the department that is relevant to the operation of UKHSA
any separate settlement letter that is issued to UKHSA from the department
ensuring they have appropriate internal mechanisms for the monitoring, governance and external reporting regarding compliance with any conditions arising from the above documents
giving evidence, normally with the PAO, when summoned before the public accounts committee on UKHSA’s stewardship of public funds

Responsibilities to the department

5.11. Particular responsibilities to the department include:

establishing, in agreement with the department, UKHSA’s strategic and business plans in light of the department’s wider strategic aims and agreed priorities
informing the department of progress in helping to achieve the department’s policy objectives in so far as they relate to UKHSA functions and duties, and in demonstrating how resources are being used to achieve those objectives
ensuring that timely and sufficiently detailed forecasts and monitoring information on performance and finance are provided to the department on a periodic basis; that the department is notified promptly if overspends or underspends 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

5.12. The chief executive is responsible for:

advising the board on the discharge of UKHSA board’s responsibilities as set out in this document and in any other relevant instructions and guidance that may be issued from time to time
advising the board on UKHSA’s performance compared with its aims and objectives
ensuring that financial considerations are taken fully into account by the board at all stages in its provision of advice scrutiny, and that financial appraisal techniques are followed
bringing to the attention of the board any matters which give rise to a conflict with the chief executive’s responsibilities as accounting officer

The board

Composition of the board

5.13. UKHSA will comply fully with the principles and supporting provisions of executive agency good corporate governance. In line with Model 2 (set out in Cabinet Office guidance Public Bodies Handbook – Part 3), and guidance set out in Annex B of this document, UKHSA will have an advisory board with an audit and risk committee (ARC) that contains both executive and non-executive members. The board will provide advice, scrutiny and challenge to the chief executive and executive team; however, non-executive members will not have decision making authority – as is the case with other executive agencies. Detailed responsibilities of the board shall be set out in the board terms of reference. Remuneration of its members will be disclosed in line with the guidance in the government financial reporting manual (FReM).

5.14. The board will comprise:

a non-executive chair, and at least 3, but not more than 7, non-executive members, one of whom chairs the ARC
the chief executive and other executive members as agreed by the board from time to time
no more than 3 associate non-executive members may be appointed by the board. They are non-voting and shall bring particular skills, experience and expertise, such as in-depth knowledge of the third sector
one of the deputy CMOs

In addition:

the CMO and other UK CMOs will be able to attend and speak at board meetings as observers
a representative from the department will also attend the board

5.15. Members will have a balance of skills and experience appropriate to directing UKHSA’s business, including academic medical science, large scale operations, infectious disease, health inequalities, data, technology, organisational performance management and corporate services. The board should include a majority of independent non-executive members to ensure that executive members are supported and constructively challenged in their role.

Board committees

5.16. The board may set up such committees as necessary for them to fulfil their functions, each of which will provide advice, support and constructive challenge in its respective areas of responsibility and provide the board with regular reporting. As is detailed below, at a minimum, this is expected to include: an ARC (mandatory requirement) chaired by an appropriately qualified non-executive member of the board, a committee on health inequalities, and one on clinical and medical science.

5.17. While the board may make use of committees to assist their consideration of audit, risk and remuneration, it retains responsibility for, and endorses, advice to the chief executive in all of these areas. The chair should ensure that sufficient time is allowed at board meetings for committees to report on the nature and content of discussion, on recommendations, and on actions to be taken.

5.18. The chair shall ensure board committees are properly structured with appropriate terms of reference. The terms of each committee shall set out its responsibilities as set by the board. The chair shall ensure that committee membership is periodically refreshed and that individual independent non-executive members are not over-burdened when deciding the chairs and membership of committees.

5.19. The board shall meet at least quarterly and meetings shall be held in public. The papers for its meetings, including a summary of discussions, shall be published, along with a copy of the advisory board terms of reference, on the UKHSA website.

Appointments to the board

5.20. The chair of the UKHSA board and all non-executive members are appointed by the Secretary of State for health and social care. These appointments must comply with the governance code on public appointments.

5.21. 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 a board which includes a balance of skills and backgrounds.

Role of the board

5.22. The board shall provide advice, support and constructive challenge to the chief executive and executive team on:

establishing and taking forward the strategic aims and objectives of UKHSA consistent with its overall strategic direction, and the annual remit letter, and within the capital and resource budget limits set by Parliament:
providing effective leadership of UKHSA 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 UKHSA to meet its objectives
reviewing management performance
ensuring that the board receives and reviews regular financial and management information concerning the management of UKHSA
ensuring that the board is kept informed of any changes which are likely to impact on the strategic direction of the UKHSA 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 delegated authority is agreed with the department, and is in accordance with any other conditions relating to the use of public funds; and that, in supporting decision-making, the board takes into account guidance issued by the department
ensuring that as part of the above compliance they are familiar with:
this framework document
any delegation letter issued to the body
any elements of any settlement letter issued to the department that is relevant to the operation of UKHSA
any separate settlement letter that is issued to UKHSA from the department
that they have appropriate internal mechanisms for the monitoring, governance and external reporting regarding any conditions arising from the above documents, and support the chief executive and UKHSA as a whole to act in accordance with their obligations under the above documents
demonstrating high standards of corporate governance at all times, including by using the independent ARC to help the board to address key financial and other risks
putting in place mechanisms for independent appraisal and annual evaluation of the performance of the chair by the SDS, taking into account the views of relevant stakeholders. The outcome of that evaluation should be made available to the responsible minister
determining all such other things which the board considers ancillary or conducive to the attainment or fulfilment by UKHSA of its objectives

5.23. The board shall ensure that effective arrangements are in place to provide it with assurance on risk management, governance and internal control.

5.24. The board shall make a strategic choice about the style and shape of risk management and shall lead the assessment and management of opportunity and risk. The board shall 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”).

5.25. The board shall set up an ARC chaired by an appropriately qualified non-executive member to provide independent advice to the chief executive on risk and ensure that the department’s audit and risk assurance committee is provided with routine assurances with escalation of any significant limitations or concerns. The board is expected to assure themselves of the adequacy and effectiveness of the risk management framework and the operation of internal control.

The chair’s role and responsibilities

5.26. The chair is responsible for leading the board in the delivery of its responsibilities. Such responsibility shall be exercised in light of their duties and responsibilities as set out in the chair’s contract of employment, any appointment letter, the framework document and the documents and guidance referred to within this document.

5.27. Communications between UKHSA’s board and the responsible minister should normally be through the chair.

5.28. 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.

5.29. In addition, the chair is responsible for:

ensuring that UKHSA’s affairs are conducted with probity, including by monitoring and engaging with appropriate governance arrangements
ensuring that policies and actions support the responsible minister’s wider strategic policies and that, where appropriate, these policies and actions shall be clearly communicated and disseminated throughout UKHSA

5.30. The chair has the following leadership responsibilities in support of the chief executive who holds formal responsibility for UKHSA:

developing and maintaining a diverse and high-performing non-executive board team, helping to foster collaborative relationships at all levels within UKHSA, with the department, across government and devolved administrations, and with other key stakeholders
establishing sound governance for the agency including through ensuring effective non-executive leadership of UKHSA’s ARC and establishing and maintaining other committees and sub-committees as needed
supporting and informing the evolution of UKHSA’s organisational and strategic design and development, including through assisting the chief executive to develop a leadership model to recruit, build and retain UKHSA’s top talent
formulating the board’s strategies and ensuring that the board, in reaching decisions, takes proper account of guidance provided by the responsible minister or the department
supporting the chief executive’s accountability relationship with the department, and providing advice, support and challenge to UKHSA executive team in delivering the priorities set out in UKHSA’s annual business plan
supporting the chief executive in promoting the efficient and effective use of staff and other resources, and ensuring that the appropriate organisational culture, values, behaviours and capability are in place to enable UKHSA to fulfil its function and deliver its mission
delivering high standards of regularity and propriety, including that UKHSA adheres to good financial principle as set out in HMT’s Managing Public Money and the Cabinet Office’s Partnerships between departments and Arm’s Length Bodies: Code of Good Practice

5.31. The chair also has obligations to ensure that:

the work of the board and its members are reviewed and that they are working effectively, including ongoing assessment of the performance of individual board members with a formal annual evaluation and further assessments of the performance of individual board members when being considered for re-appointment
in conducting assessments, the views of relevant stakeholders including employees and the sponsor team are sought and considered
the board has a balance of skills appropriate to directing UKHSA’s business, and that all members, including the chair, continually update their skills, knowledge and familiarity with UKHSA to fulfil their role both on the board and committees. This shall include, but not be limited to, appropriate skills and training in relation to financial management and reporting requirements, risk management, the requirements of board membership within the public sector and any differences that may exist between private and public sector practice
board members are fully briefed on their terms of appointment, duties, rights and responsibilities
the responsible minister is advised of UKHSA’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, that has at its heart all the requirements set out within the Cabinet Office Code of Conduct for Board Members of Public Bodies

5.32. The senior departmental sponsor is responsible for agreeing the objectives for and reviewing the contribution of the chair of UKHSA. This process is a requirement of the commissioner for public appointments. The department’s Public Appointments and Honours Unit shall write to all chairs annually to inform them that the senior departmental sponsor shall be contacting them to arrange meetings to review objectives and to ask them to complete the same task for their non-executive members.

Individual board members’ responsibilities

5.33. Individual board members shall:

comply at all times with the Code of Conduct for Board Members of Public Bodies, which covers conduct in the role and includes the Nolan Principles of Public Life as well as rules relating to the use of public funds and to conflicts of interest
demonstrate adherence to the 12 Principles of Governance for all Public Body Non-Executive Directors as appropriate
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 UKHSA
ensure they are familiar with any applicable guidance on the role of public sector non-executive members and boards that may be issued from time to time by the Cabinet Office, HM Treasury or wider government

Role of the Chief Medical Officer (CMO)

5.34. UKHSA’s relationship with the CMO is of high importance to the agency’s successful operation.

5.35. As the UK’s most senior medical adviser, the CMO will have a close relationship with the UKHSA chief executive. The CMO will be the ultimate arbiter for advice on scientific and medical matters, will be formally consulted on wider health protection strategy and will be the professional lead for UKHSA’s most senior medical professional.

5.36. As head of the public health profession, and its representative within government, the CMO also acts as the professional lead on technical issues for UKHSA’s Chief Medical Adviser (CMA) and chief executive if a public health professional, feeding into their appraisal process and providing informal mentoring. The CMO plays an important role in supporting UKHSA’s scientific integrity and excellence, and in ensuring optimal coordination with the Office for Health Improvement and Disparities, noting that the CMO is senior professional lead for both entities.

5.37. The CMO will receive all UKHSA board meeting papers and holds the right to attend as a speaking observer. One of the deputy CMOs is a member of the board.

5.38. The CMO also works closely with the other UK CMOs in support of UKHSA’s ambition to develop strong national partnerships across the 4 nations of the UK. Additionally, the CMO coordinates closely with UKHSA in support of its global health remit, given their role representing the UK internationally on public health issues, including in global health institutions.

Quality and clinical governance

5.39. UKHSA will establish cross-organisational quality and clinical governance arrangements which ensure that the work of UKHSA meets standards for safety, effectiveness, efficiency, and put in place quality and clinical governance arrangements to meet the standards expected of national organisations in the health and care sector. This work will be overseen by the Chief Medical Adviser and Director of Health Equity and Clinical Governance, and report into the executive committee.

Question 6

6.  Management and financial responsibilities

Accepted Answer

Delegated authorities

6.1. UKHSA’s delegated authorities are set out in the delegation letter from the principal accounting officer.

6.2. In line with Managing Public Money Annex 2.2, these delegations shall be reviewed on an annual basis by the department, and the UKHSA delegation letter will therefore be updated from time to time by the department, in agreement with the HM Treasury spending team.

6.3. UKHSA shall obtain the department’s approval and, where required, HM Treasury’s prior written approval, before:

entering into any undertaking to incur any expenditure or recognising the risk of a contingent liability arising that falls outside the delegations or which is not provided for in UKHSA’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, or 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 Managing Public Money

Spending authorities

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

UKHSA shall comply with the delegations set out in the delegation letters. These delegations shall not be altered without the prior agreement of the department and as agreed by HM Treasury and Cabinet Office as appropriate
UKHSA shall comply with Managing Public Money regarding novel, contentious or repercussive proposals
inclusion of any planned and approved expenditure in the budget shall not remove the need to seek formal approval from the department and, where required, HM Treasury where any proposed expenditure is outside the delegated limits or is for new schemes not previously agreed
UKHSA shall provide the department with such information about its operations, performance, individual projects or other expenditure as the department may reasonably require

Banking and managing cash

6.5. UKHSA shall maximise the use of publicly procured banking services (accounts with central government commercial banks managed centrally by Government Banking).

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

6.7. Commercial accounts, where approved, shall be operated in line with the principles set out in Managing Public Money.

6.8. The accounting officer is responsible for ensuring that UKHSA has a banking policy as set out in Managing Public Money and ensuring compliance with that policy.

Procurement

6.9. UKHSA shall ensure its procurement policies are aligned with and comply with any relevant UK or other international procurement rules and regulations, in particular, the Public Contracts Regulations 2015 and their legal responsibilities within these regulations. UKHSA must ensure compliance with Cabinet Office controls policy, including commercial controls, as per 2021 revisions to the Schedule of ALB delegations.

6.10. UKHSA shall establish procurement policies and document these in a procurement policy and procedures manual.

6.11. In procurement cases where UKHSA is likely to exceed its delegated authority limit as documented in the delegation letter, procurement strategy approval for the specific planned purchase must be sought from the department as set out in the arm’s length body schedule of delegations.

6.12. Goods, services, and works will normally be acquired by competition, using notices to publish contract opportunities. All competitions will:

meet UKHSA’s legal obligations and the objectives of the national procurement policy statement
follow standard workflows for commercial activities
address how to achieve financial savings and other benefits such as innovation, risk reduction and quality/service improvements
respond to central government policy initiatives such as the transparency agenda, sustainability and social value

6.13. Proposals to let single-tender or restricted contracts shall be limited and exceptional, and a quarterly report explaining those exceptions should be sent to the department.

6.14. Procurement by UKHSA of works, equipment, goods and services shall be based on a full option appraisal and value for money; that is, the optimum combination and whole life costs and quality (fitness for purpose).

6.15. UKHSA shall:

engage fully with the health family and government-wide commercial initiatives that seek to achieve value for money from collaborative projects
participate in the health family strategic commercial steering group and support the wider government commercial function agenda
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 value for money
ensure their commercial capability is developed in line with government commercial function people standards for the profession and Health Family Commercial Head of Profession Plans

6.16. UKHSA shall also 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 the suite of functional standards that set expectations for management within government.

Risk management

6.17. UKHSA shall ensure that the risks that they face 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 HM Treasury guidance Management of Risk: Principles and Concepts.

6.18. UKHSA shall promptly notify the department, including through the accountability meetings, of any operational and financial risks arising from their activities which may have a potentially significant impact on them, the department, another healthcare body or the wider system via the sponsor team and the department’s risk team. These will be discussed with the senior departmental sponsor. Such risks may be escalated to the department’s audit and risk committee for consideration. The chair of the UKHSA audit, risk and assurance committee shall also escalate any risk concerns to the department’s SDS and may be asked to attend the department’s audit and risk committee to explain risks. It is the responsibility of UKHSA and the sponsor team to keep each other informed of significant risks to, or arising from, the operations of UKHSA within the wider system.

Data protection, information risk and assurance

6.19. The department is the legal data controller for UKHSA data and the department data protection officer (DPO) is legally accountable for the protection of data, and in particular personal data, handled by UKHSA, and will be named as data controller on the ICO registration. As such:

the department DPO will delegate responsibility to UKHSA, which may nominate its own SIRO and Caldicott Guardian, to conduct all low to medium risk level data actions and but will require UKHSA to seek advice from, and to consult with, the department DPO before a decision is taken on high risk level data actions
the department SIRO will delegate responsibility for information risks across all data at low to medium risk activities but will require advice and consultation to be sought from the department SIRO before an information risk is accepted for high risk activities
UKHSA will at minimum adhere to relevant departmental policies and standards across data protection, information risk management, information assurance, information security, information management and other data protection and information risk and assurance related compliance policies as they arise
The department will seek periodic assurance that UKHSA is adhering to these policies and relevant standards

Counter fraud and theft

6.20. UKHSA shall adopt and implement policies and practices to safeguard itself against fraud and theft.

6.21. UKHSA shall act in line with guidance as issued by the counter fraud function and in compliance with the procedures and considerations as set out in Managing Public Money Annex 4.9 and the Counter Fraud Functional Standard. UKHSA shall 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 funding.

6.22. UKHSA shall keep records of, and prepare and forward to the department an annual report on, fraud and theft suffered by UKHSA, and notify the department of any unusual or major incidents as soon as possible. UKHSA shall 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 the Counter Fraud Functional Standard.

Staff

Broad responsibilities for staff

6.23. Within the arrangements approved by the responsible minister and HM Treasury, UKHSA shall have responsibility for the recruitment, retention and motivation of their staff. The broad responsibilities toward towards staff are to ensure that:

the rules for recruitment and management of staff are in line with Civil Service Commission Recruitment principles and create an inclusive culture in which diversity is valued and promoted; appointment and advancement is based on merit; there is no discrimination including on grounds of gender, marital status, sexual orientation, race, colour, ethnic or national origin, religion, disability, community background or age
the level and structure of staffing, including grading and staff numbers, are appropriate to their functions and the requirements of economy, efficiency and effectiveness
the performance of staff at all levels is satisfactorily appraised and UKHSA performance measurement systems are reviewed from time to time
staff are encouraged to acquire the appropriate professional, management and other expertise necessary to achieve UKHSA’s objectives
proper consultation with staff takes place on key issues affecting them; including where that may be through recognised trade unions acting on behalf of staff
adequate grievance and disciplinary procedures are in place
whistleblowing, speak up and raising concern procedures consistent with Public Interest Disclosure Act are in place
a code of conduct for staff is in place reconciling the Civil Service Code with the requirements of professional bodies’ codes of conduct

Staff costs

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

Pay and conditions of service

6.25. The UKHSA staff are subject to levels of remuneration and terms and conditions of service (including pensions) within the general pay structure approved by the department and HM Treasury. UKHSA has no delegated power to amend these pay terms and conditions without the approval of the Secretary of State.

6.26. Any business expenses paid to any party – employees or non-employees – by UKHSA will comply with UKHSA’s Business Expenses Policy, which will itself be aligned to the Civil Service Management Code, except where prior approval has been given by the department to vary such rates.

6.27. In general terms, UKHSA will adopt policies developed by Civil Service HR, which will be adapted where necessary to reflect UKHSA’s business and workforce. In addition, UKHSA will adopt those policies necessary to support the scientific requirements of roles within the clinical ring fence, particularly, although not exclusively, around medical and dental practitioners, professional appraisals and medical revalidation.

6.28. Staff terms and conditions shall be set out in UKHSA policies which are deemed non-contractual unless expressly stated and which may be amended from time to time. Further contractual aspects of employment are set out in the relevant UKHSA contract of employment.

6.29. UKHSA shall abide by public sector pay controls, including the relevant approvals process dependent on their classification as detailed in the senior pay guidance and the public sector pay and terms guidance).

6.30. UKHSA may operate a performance-related pay scheme that shall form part of the annual aggregate pay budget approved by the department/or the general pay structure approved by the department and HM Treasury where relevant, with due regard to the senior pay guidance and in line with Cabinet Office guidance.

6.31. The travel and subsistence expenses of members of the UKHSA advisory board shall be determined by the UKHSA business expenses policy. Members may claim reimbursement for reasonable expenses necessarily incurred on official business. Payments for attending board meetings are taxable as earnings and will be subject to tax and national insurance.

Pensions, redundancy and compensation

6.32. UKHSA will operate in line with compensation scheme rules, pension scheme rules and legislative, Cabinet Office and HM Treasury guidance requirements regarding exit payments. Other contractual redundancy schemes, such as the rules set out in the Agenda for Change handbook, will also be applied for relevant staff within the clinical ring fence.

6.33. UKHSA staff shall normally be eligible for a pension provided by either the Civil Service Pension Scheme or the NHS Pension Scheme, depending on whether roles are inside or outside the clinical ring fence. Staff may opt out of this occupational pension scheme, but the employers’ contribution to any personal pension arrangement, including stakeholder pension, shall normally be limited to the national insurance rebate level.

6.34. Any proposal for UKHSA to move from the existing pension arrangements, or to pay any redundancy or compensation for loss of office, requires the prior approval of the department. Proposals on severance shall comply with the rules in chapter 4 of Managing Public Money.

Recruitment of senior staff

6.35. While UKHSA is responsible for the structure and staffing of their organisation, it will consult with the department when making decisions on the creation, regrading or reduction of Senior Civil Service (SCS) posts. SCS remuneration is subject to the recommendations of the Senior Salaries Review Body and Executive and Senior Manager remuneration is subject to the recommendations of the Senior Salaries Review Body as accepted by government. As outlined above, any recruitment with a salary over £150,000 must be done in line with senior pay guidance and approval is required from DHSC in advance of seeking approval from HMT.

Business plan

6.36. UKHSA shall submit annually to the sponsor department a draft of the strategic plan covering 3 years ahead. The draft should be submitted by a date agreed with the department. UKHSA shall agree with the department the issues to be addressed in the plan and the timetable for its preparation. The plan shall reflect UKHSA’s statutory and/or other duties and, within those duties, the priorities set from time to time by the Responsible Minister (including decisions taken on policy and resources in the light of wider public expenditure decisions). The plan shall demonstrate how UKHSA contributes to the achievement of the department’s medium-term plan and priorities, in line with the remit letter and aligned with the performance metrics and milestones.

6.37. The first year of the strategic plan, amplified as necessary, shall form the business plan. The business plan shall be updated to include key targets and milestones for the year immediately ahead and shall be linked to budgeting information so that resources allocated to achieve specific objectives can readily be identified by the department.

6.38. Subject to any commercial considerations, the strategic and business plans should be published by UKHSA and separately be made available to staff.

6.39. The following key matters shall be included in the business plan:

key objectives and associated key performance targets for the forward years, and the strategy for achieving those objectives
key non-financial performance targets
a review of performance in the preceding financial year, together with comparable outturns for the previous 3 years, as applicable, 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 UKHSA

Budgeting procedures

6.40. Each year, in the light of decisions by the department on the updated draft strategic plan, the department will send to UKHSA by a date to be mutually agreed:

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
any planned change in policies affecting UKHSA

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

Parliamentary funding and any ring-fenced grants

6.42. Any Parliamentary funding provided by the department for the year in question shall be voted in the department’s supply estimate and be subject to Parliamentary control.

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

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

Annual report and accounts

6.45. UKHSA shall publish annual reports of its activities, together with audited accounts after the end of the financial year for each legal entity operating as part of UKHSA. A draft of the report should be submitted to the department at least 2 weeks before the proposed publication date. The draft and finalised (audited) accounts should be provided to the department in line with the agreed annual timetable established by the department in order for the accounts to be consolidated within the department’s accounts. These accounts should be prepared in accordance with the relevant statutes and specific accounts directions issued by the department, as well as with HM Treasury’s Financial Reporting Manual.

6.46. The annual report and accounts must:

comply with the Financial Reporting Manual and, in particular, have regard to the illustrative statements for an executive agency
outline main activities and performance during the previous financial year and set out in summary form forward plans

6.47. Information on performance against key financial targets is within the scope of the audit and shall be included as part of the financial performance described in the annual report. The report and accounts must be laid in Parliament and made available on UKHSA’s website, in accordance with the guidance in the Financial Reporting Manual.

6.48. The department has the right of access to all UKHSA records and personnel for any purpose including, for example, sponsorship audits and operational investigations.

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

6.50. The department and HM Treasury may request the sharing of data held by UKHSA 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.

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

UKHSA’s cash management
its draw-down of Parliamentary funding
forecast outturn by resource headings
other data required for the Online System for Central Accounting and Reporting (OSCAR)
data as required in respect of its compliance with any Cabinet Office controls pipelines or required in order to meet any condition as set out in any settlement letter

Audit and assurance

Assurance

6.52. UKHSA will have an assurance framework and associated annual plan to ensure a full range of assurance activities (aligned to internal audit planning) in line with HMT and Cabinet Office guidance and the ‘3 lines of defence’ model for corporate assurance. This framework may also address clinical governance and assurance.

6.53. Such internal assurance will assess UKHSA operations, the portfolio of projects and programmes, and other areas, depending on risk assessments.

6.54. Third line assurance may also be done by the Infrastructure and Projects Authority (IPA), where required, for major projects.

6.55. UKHSA’s assurance function will report to the audit, risk and assurance committee as required.

Internal audit

6.56. UKHSA shall:

establish and maintain arrangements for internal audit in accordance with HM Treasury’s Public Sector Internal Audit Standards
ensure the department is satisfied with the competence and qualifications of the Head of Internal Audit and the requirements for approving appointments in accordance with Public Sector Internal Audit Standards
forward the audit strategy, periodic audit plans and annual audit report, including UKHSA’s head of internal audit opinion on risk management, control and governance, as soon as possible to the department
share with the 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 UKHSA

External audit

6.57. The comptroller and auditor general audits UKHSA’s annual accounts and lays them before Parliament together with their report.

6.58. The comptroller and auditor general:

shall consult the department and UKHSA on whom – the National Audit Office or a commercial auditor – shall undertake the audits on their behalf, though the final decision rests with the comptroller and auditor general
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 UKHSA
shall share with the department information identified during the audit process and the audit report (together with any outputs) at the end of the audit, in particular on issues impacting on the department’s responsibilities in relation to financial systems within UKHSA
shall 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 comptroller and auditor general’s independent status, the provision of such reports is entirely at the comptroller and auditor general’s discretion

6.59. The comptroller and auditor general may carry out examinations into the economy, efficiency and effectiveness with which UKHSA has used its resources in discharging their functions. For the purpose of these examinations, the comptroller and auditor general has statutory access to documents as provided for under section 8 of the National Audit Act 1983. In addition, UKHSA shall provide, in conditions to grants and contracts, for the comptroller and auditor general 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 comptroller and auditor general to any other documents required by the comptroller and auditor general which are held by other bodies.

Question 7

7.  Reviews and winding up arrangements

Accepted Answer

Review of UKHSA status

7.1. In accordance with Cabinet Office guidance, UKHSA shall be reviewed at appropriate dates as agreed with the department.

Arrangements in the event that UKHSA is abolished

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

7.3. UKHSA shall provide the department with full details of all agreements where UKHSA 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 UKHSA.

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1. Introduction and background