Corporate report

Great Britain China Centre 2018 tailored review: terms of reference

Published 5 November 2018

1. Background

The Great Britain China Centre (GBCC) was founded in 1974. Its principal activity is to encourage mutual knowledge and understanding through the promotion of closer cultural, professional, economic, educational, legal, judicial and other contacts between Britain and China.

GBCC’s core mission and strategic aims, as set out in its Management Statement are:

To promote understanding between Britain and China, though three strategic aims:

1. to work with Chinese partners to contribute to the development of good governance, rule of law and the better protection of human rights

2. to contribute to the strengthening of relations between the UK and China and in particular in the promotion of the UK as a model for good governance and rule of law developments

3. to strengthen understanding between senior leaders and officials in China, and politicians and parliamentarians in the UK and EU

As a Non-Departmental Public Body (NDPB) of the FCO, the GBCC aims to align with Asia Pacific Department’s (APD) business plan and FCO and government strategic priorities.

The FCO provides annual grant-in-aid funding to the GBCC (£470,000 in financial year 2017 to 2018, £500,000 in 2018 to 2019). This represents about 40% of the GBCC’s funding. The rest is made up of project funding and sponsorship which varies each year. Project funding, from all sources, for 2017 to 2018 was £603,063.

GBCC employs 4.5 permanent and 3.5 contract staff.

2. The Purpose of the Review

Good corporate governance requires that public bodies are efficient, effective and accountable, and provide value for money. All public bodies are required to be reviewed on a periodic basis in accordance with Cabinet Office guidelines.

A Triennial Review of the GBCC was carried out in 2013. The Cabinet Office Public Bodies Reform Team has recommended that a Tier 3 Review is carried out in financial year 2018 to 2019.

The Review will assess in particular:

• the effectiveness of the organisation in its function and form in delivering its objectives, supporting FCO priorities and UK/China relations

• the effectiveness of the programme in its function and form in delivering the organisations objectives, supporting FCO priorities and UK/China relations

*the control and governance arrangements in place to ensure that the organisation and its sponsor are complying with the Cabinet Office’s code of good practice on partnerships with arm’s length bodies and that they are optimal for the organisation’s effectiveness

3. Scope

The Review will be proportionate to GBCC’s size and specialised nature. The FCO accordingly intends to adopt a light touch approach to the delivery of the Review.

3.1 Form and function

The Review will consider:

• the functions of the GBCC as set out in its Management Statement, whether they are still required, and whether they are aligned to FCO and wider government objectives

• if the activities of the GBCC are consistent with these functions

• whether the form of the GBCC (a NDPB) is the most effective and efficient way of delivering these functions (Does it meet the Cabinet Office’s ‘Three tests’)

3.2 Effectiveness

The Review will look at the effectiveness of GBCC, principally:

• the suitability of GBCC’s priorities in relation to FCO’s Single Departmental Plan, government commitments and in supporting work of other government departments

• the effectiveness of its current strategy and activities

• how the impact of GBCC is measured and evaluated

• to what extent relevant recommendations from the 2013 Review have been implemented

3.3 Economic model and sustainability

The Review will consider:

• whether the GBCC’s funding model is (i) the most appropriate to deliver its objectives, (ii) sustainable, including the ability to generate commercial income

• the potential implications of Brexit on GBCC’s funding streams

3.4 Efficiency

The Review will consider:

• whether the GBCC provides good value for money for British taxpayers

• whether the GBCC office and location are compliant with relevant Government Property Unit guidance

• if the recommendations of the 2013 Review have been effectively implemented

• if, how and where further efficiencies can be made within GBCC, including the potential for the use of shared services

3.5 Governance

The Review will examine the robustness and transparency of GBCC’s Governance including:

• the role of the Board in setting and monitoring the strategy of GBCC and how this is assessed

• whether governance controls in place follow the principles set out in the ‘Partnerships with arm’s length bodies: code of good practice’, including on transparency, diversity and data protection

• the relationship between GBCC and the FCO

4. Issues which are out of scope for the Review

The Review team will not undertake an audit of GBCC finances, nor detailed financial or economic modelling of future options.

Devolution issues do not directly impact GBCC, and have therefore not been included in the Review’s scope.

The principle of proportionality will be applied at all times.

5. Annex A: approach and methodology

5.1 Review Team

Anne Macro Jonathan Bacon

The Review Team consists of FCO officials from outside the Sponsor Team. The team will formally take up their roles in October 2018.

The Review Team are responsible for launching the Review by Written Ministerial Statement, consulting stakeholders, gathering evidence, analysing results, writing the report and disseminating its results.

The Tailored Review will include a small Challenge Panel to test and challenge the assumptions and conclusions of the Review Team.

5.2 Methodology

The Review will begin in November 2019 and end by January 2019 with the report published before the end of financial year 2018 to 2019. An FCO SMS member of staff will have oversight of the interim findings to ensure the review is robust and rigorous. The Review Team will consult him/her throughout the process and will maintain regular discussions with the Cabinet Office Public Bodies Reform Team. The methodology will include:

• desk research of key documents

• a call for evidence with relevant stakeholders followed by meetings/phonecalls to explore some of the issues in more detail

• consultation with FCO policy colleagues, Whitehall partners and sponsors to inform and support the Review; Site visits to the GBCC to speak to staff members and external partners and beneficiaries in the UK and (if feasible) China to gain an in depth understanding of how the organisation operates and its effectiveness

• work with relevant FCO policy/financial leads to provide advice on analytical, financial, legal and policy aspects to make sure any recommendations are robust and achievable

5.3 Ministerial approval

The Minister for the Constitution will sign off the Terms of Reference.

FCO Ministers will have the opportunity to comment on the scope of the Review and will sign off the final report and recommendations.

The Launch of the Review and the outcome will be announced in Parliament by Written Ministerial Statement.