Guidance

Tailored Review of Westminster for Democracy: terms of reference

Published 12 September 2018

1. Tailored Reviews

All public bodies are required to be reviewed on a periodic basis, in accordance with Cabinet Office guidelines

The principal aims of Tailored Reviews are to ensure public bodies remain fit for purpose, are well governed and properly accountable for what they do.

The new tailored review guidance offers greater flexibility to departments so that reviews are proportionate to the size and type of public body and more flexible in timing and approach. Departments continue to lead these reviews and must undertake a tailored review of their public bodies at least once in the lifetime of a Parliament.

This review is classified as a Tier 3 review which is proportionate to the size and funding of the body.

2. Westminster Foundation for Democracy

The Westminster Foundation for Democracy (WFD) was established in 1992 as an Executive Non Departmental Public Body (NDBP), sponsored by the Foreign and Commonwealth Office (FCO) to support its strategic aims. WFD’s work focuses on strengthening democracy in Africa, Asia, Eastern Europe and Central Asia, and the Middle East, Latin America and North Africa.

In the period following the Triennial Review of WFD in 2014, WFD’s developed a new 5 year strategy (2017 to 2022) expanding its focus to include civil society strengthening, electoral assistance, inclusive politics and women’s political empowerment, and open government, building a case for continued (and possibly increased) UK investment.

The FCO provides annual grant-in-aid to WFD which has been £3.5 million since 2009 to 2010. DFID started providing 3-year accountable grants in 2012, which are now of higher value than the grant-in-aid, with DFID contributing £4 million in 2018 to 2019, 2019 to 2020, and 2020 to 2021.

3. Scope of Review

Part One

Part One of the Review has 2 principal aims:

(i) Provide a robust challenge to the continuing need for the WFD in terms of its functions, form, and engagement and influence with stakeholders; and

(ii) Review the WFD’s control and governance arrangements to ensure compliance with the corporate governance principles contained in the Cabinet Office Tailored Review Guidance.

Part One of the Review will consider 3 questions:

a. Do the key functions of the WFD continue to be relevant and necessary in terms of delivering the Government’s objectives.

• does the purpose of the WFD as set out in the Management Statement of 2013 remain relevant and necessary
• does the 2013 Management Statement still adequately reflect relevant government objectives
• are the functions of the WFD consistent with that purpose
• do they deliver influence for the UK through support for democracy/soft power
• do they help deliver government foreign policy and development goals, and what is the balance between these objectives
• do they deliver poverty reduction, as set out in DFID’s objectives

b. If so, are these functions most effectively and cost efficiently provided at arms-length from Government and, more specifically, through an executive Non Departmental Public Body (NDPB).

• how effectively does the WFD carry out each of these functions
• could any of them be delivered as well or better by alternative delivery methods or providers
• does the WFD provide good value for British taxpayers
• is the FCO’s and HMG’s engagement with WFD adequate to support WFD’s delivery of these functions

c. Is the operating model of the WFD the most appropriate.

• does it allow the WFD to deliver its functions effectively
• does it give rise to conflicts of interest or valid competition issues
• what alternative financing and delivery models might be appropriate, and what would the cost and impact of any changes be
• is it correct for all funding to be Official Development Assistance
• what will the impact of Brexit be on WFD’s operating model, and is the organisation sufficiently prepared

Part Two

The Review will consider:

(i) WFD’s capacity for delivering more effectively and efficiently, including identifying the potential for efficiency savings and

(ii) whether the WFD is operating in accordance with the recognised principles of corporate governance by being open, transparent and accountable. Part Two will consider:

Efficiency and effectiveness

• delivery of its previous Strategy 2015 to 2017
• delivery of its current Strategic Plan (2017 to 2022)
• reporting against delivery of its Strategic Plan
• funding, resource management and value for money
• risk management

Governance

• the FCO and DFID’s oversight arrangements for WFD, including fiduciary accountability and WDF internal systems for measuring results and impact
• the effectiveness of the WFD’s Governance (executive and non-executive) and how this is assessed.
• whether the governance controls in place follow “good practice”
• governance for WFD’s work with Political Party Organisations and reporting systems, including impact and financial reporting
• WFD’s internal structures and accountability systems
• WFD’s work on diversity and the Gender Pay Gap

4. Output

A report setting out the reviewers’ findings in response to the questions posed in Stages 1 and 2 of the Review, with clear recommendations, including any changes required to WFD’s models, to:

a) ensure the sponsoring Department’s requirements are met and, if the recommendation is that the NDBP continues to operate

b) ensure that the body is operating in line with recognised principles of good corporate governance; and

c) ensure that the delivery model provides value for money and promotes FCO foreign policy and DFID development goals

5. Process

The review will be completed by 3 members of FCO staff. These have been resourced through the Project Taskforce (PTF) and are not Human Rights Policy Unit (HRPU) staff. This meets the need for the review to be conducted independently. The PTF colleagues will be embedded into HRPU but their line management chain will remain in PTF.

Part One

• verify WFD’s functions, assess how the functions contribute to the aims and objectives set out in WFD’s corporate planning and the Management Statement, how they contribute to FCO and DFID core business and consider whether the functions are still needed
• assess the adequacy of the 2013 Management Statement
• a stakeholder mapping exercise and consultation, including both the FCO and DFID
• review of all relevant documentation
• analysis of alternative delivery options, including whether the function(s) can be delivered by local government, voluntary or private sectors. The analysis should also include an assessment of different central government delivery models, including whether the function can be delivered by the sponsoring Department, by a new or existing Executive Agency or by another existing central government body. The analysis should also include an assessment of the NDPB against the Government’s three tests as set out in Cabinet Office guidance
• the reviewers will liaise with external evaluators that have assessed WFD’s impact to share information prior to commencement of the review and throughout. The reviewers will aim to avoid duplicating previous assessments.

Part Two

• work with WFD’s Chief Executive, Board of Governors and Finance Director to assess if WFD is operating in line with Cabinet Office guidance on corporate governance
• map out what other UK partners and implementers are doing and what other countries are doing in this field. Consider international best practice on the design and delivery of democracy-support programmes
• examine WFD’s funding, operating and management models, including composition and role of the Board, and line management responsibilities and consider whether they are conducive to providing effective, transparent and value for money delivery of HMG objectives
• WFD must be engaged in the review. WFD should have the opportunity to comment and input from the planning stage onwards. WFD must have the opportunity to comment on the emerging conclusions and recommendations of the review

6. Reporting Arrangements

The Review Team is responsible for launching the review, consulting stakeholders, gathering evidence, analysing results, writing the report and disseminating its results. The team will report to the Head of Human Rights Policy Unit at each stage of the process by means of an oral briefing – dates to be agreed. The Team should submit a draft report for comment by 31 October 2018, with a final report detailing its findings and recommendations to the Head of HRPU by the end of 2018. The team will liaise with HRPU lead on a weekly basis.

The Review team will work closely with the FCO, Cabinet Office review team, WFD and DFID. Initial introductory meetings will be held with the three Government departments and WFD (including the Board), after which Cabinet Office will have a mid-term review with the reviewers, and a meeting at the end of the review. FCO, DFID and WFD will be consulted as necessary throughout.

The findings will be published at the end of the Review period. The launch of the Review and the outcome will be announced in Parliament by Written Ministerial Statement.