Review of standing orders

Report: 6
Date: 28 June 2007
By: Treasurer

Summary

The Authority's current procedural Standing Orders have been in place since the MPA came into existence in 2000. They have been reviewed a number of times to provide clarification in certain areas and to update in light of experience and changes in legislation. This report proposes minor amendments to the Scheme of Delegation, Financial Regulations and the Anti Fraud Policy. The Contract Regulations have however undergone a more fundamental review, to ensure they reflect best practice and legislative changes, and to make them more accessible and user-friendly.

The financial regulations, contract regulations, scheme of delegation and anti fraud policy are circulated to members only. Copies are available on request and are available from the MPA website.

A. Recommendation

That

1. members consider and approve the proposed amendments to Standing Orders;
2. the revised standing orders be applicable from 1 September 2007, subject to any changes made at the meeting;
3. the Director of Strategic Finance, as a matter of urgency, reviews the underlying MPS detailed supporting scheme of delegation to ensure it is in line with the new regulations; and
4. the contract and financial regulations be reviewed on an annual basis.

B. Supporting information

Introduction

1. The Authority's standing orders regulate the conduct of its business to ensure fair and accountable decision making, they also provide for the delegation of Authority functions and decision making to committees, panels and officers. The current Standing Orders were agreed when the Authority came into existence in July 2000. They have since been reviewed a number of times, to provide clarification in certain areas and to update in light of experience and changes in legislation.

2. The Standing orders are in six parts:-

• The Authority's procedural Standing Orders
• Committee Terms of Reference
• The Scheme of Delegation to the Officers
• The Authority's Code of Conduct
• Financial Regulations
• Contract Regulations

3. Contract Regulations were last reviewed in June 2003, and it is now time to undertake a thorough review of the existing regulations so that they could be updated to reflect changes in legislation, provide clarity in certain areas and address areas of concerns. Due to their inter-relationships a review of three sections of the Standing Orders were reviewed. These were the Scheme of Delegation to the Officers, Financial Regulations and Contract Regulations. In addition the Anti Fraud Policy, which is currently appended to the contract regulations, was also reviewed.

4. The review was undertaken by a working group, with representatives from both the MPA and MPS. In addition, as a separate piece of work, the Director of Procurement Services has updated the Procurement Strategy to reflect changes in procurement practices. The revised strategy is also presented to this meeting of the Full Authority.

5. Draft revised versions of the Scheme of Delegation to the Officers, Financial Regulations, Contract Regulations and Anti Fraud Policy are attached at Appendices 1 -4. A summary of the amendments made are detailed below.

Contract Regulations

6. The Chartered Institute of Public Finance (CIPFA) recently issued example contract procedural rules, which whilst not intended to be a model, are seen to illustrate how contract regulations may be written to ensure effective and efficient procurement, which promote good purchasing practice, public accountability and ensure compliance with both EU and UK Public Procurement rules.

7. Viewed as being good practice, the CIPFA contract procedural rules have formed the basis of the Authority's revised contract regulations, with amendments being made where necessary to meet our own requirements.

8. Whilst the wording of the revised regulations is presented differently, the rules largely remain the same. A summary of the areas where changes have been made is as follows:-

9. The regulations now include increased reference to EU legislation in acknowledgement of the importance that this plays in procuring goods and services.

10. At the time the original contract regulations were written the Authority was unaware of the volume of exemptions there would be nor of the range of values. Currently contract regulations specify that exemptions require the approval of the Commissioner through the 'Authorised Representative', with a record of the exemption being provided to the Chief Executive as soon as practicable. This is not felt to provide the necessary level of control and therefore this area has been strengthened. With the exception of unforeseeable emergencies, approval of the Chief Executive must now be sought (in writing) immediately the need for a Contract exemption (e.g. single tender action) is identified and prior to any decision being made for all contracts over £40,000. All exemptions under £40,000 must still be reported to the Chief Executive, but prior approval is not required.

11. The new regulations give clarity as to when the "seal" should be used. This section is now more detailed to avoid ambiguity.

Financial Regulations

12. The majority of the amendments to Financial Regulations are minor, with changes being made to reflect changes in job titles, legislation and the way in which the Authority undertakes it's business.

13. The main changes are rules and regulations in relation to Land and Buildings. These now form part of Financial Regulations rather than Contract Regulations, in addition the level of delegated authority that the Director of Strategic Finance has in relation to the acquisition and disposal of land and buildings has been reduced from £2 million to £1 million. This reduction is felt necessary to ensure the Authority has increased oversight with regard acquisition and disposal of properties.

Scheme of Delegation to the Officers

11. This has been updated to reflect changes made in the Financial and Contract Regulations.

Good Conduct and Anti-Fraud Policy

12. Previously called the Anti Fraud Policy this has been renamed to avoid any confusion with the work of the Directorate of Professional Services in relation to their work on corruption within the police service, and to reflect the inclusion of a new section dealing with good conduct.

13. The good conduct section has been included in response to the Standards in Public Life agenda. This is the only major change. All other changes are restricted to updating references and titles.

14. The policy is currently appended to contract regulations, however as it relates to all areas of standing orders it has been agreed that this now becomes a section of standing orders.

Next Steps

15. The regulations lay down the framework within which the MPA and MPS must operate, however to ensure effective compliance and proper understanding they will need to be supported by detailed guidance provided by the MPS. The current "Standard Operating Procedures" within the MPS for implementation of Contract Regulations will therefore need to reviewed, backed by an awareness campaign and programme of training.

16. The contract regulations refer at certain points to "the business unit's local scheme of delegation". The MPS will need to review their existing scheme of delegation as a matter of urgency to ensure they have the necessary controls in place to support the regulations.

C. Race and equality impact

Contract regulations are supported by the GLA Sustainable Procurement Policy and the Authority's Equalities and Diversity Statement. These documents aim to reduce inequalities and promote diversity in the purchasing of goods and services.

The Contract Regulations, Financial Regulations and Anti Fraud and Corruption Policy have all been equality impact assessed in the past. The impact assessments will now be reviewed in light of amendments made to the regulations.

D. Financial implications

1. The revised Regulations will ensure that we are compliant with UK and EU legislation. Concerns have been raised about the effect compliance will have on existing resources. However until the regulations are implemented it is not possible to quantify this. The situation will therefore need to be monitored carefully with additional resources, being identified if necessary, ensuring they are provided within existing budget requirements.

D. Background papers

• CIPFA contract procedural rules.

E. Contact details

Report author: Annabel Adams

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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