Delegated powers of Finance and Resources Committee and Sub Committees

Report: 6
Date: 24 June 2010
By: Treasurer

Also presented at: Finance and Resources Committee – 17 June 2010

Summary

This report reviews the current delegated powers of the Finance and Resources Committee and its sub committees, including the estates panel making recommendations where appropriate to improve the current decision making processes, ensuring that the Authority has in place governance arrangements proportionate to the risk involved.

A. Recommendations

That members

1. Approve the proposed changes to the delegated powers of Resources and Productivity Sub Committee and Olympics Sub Committee and forward them to Full Authority for approval.
2. Approve a review of the terms of reference of Finance and Resources Committee and its Sub Committees, including the Estates Panel.

B. Supporting information

1. Under the existing committee structure Finance and Resources Committee has responsibility for all decision making with regard financial, procurement, IS/IT and property issues. Resources and Productivity Sub Committee, the Olympics Sub Committee and the Estates Panel support Finance and Resources Committee but do not have any delegated powers. Therefore any report considered by the Sub Committees or Estates Panel for which a decision is needed, must also be reported to Finance and Resources Committee for approval.

2. It is important that the Authority has in place a decision making process that ensures there is appropriate levels of scrutiny but not unduly bureaucratic. Therefore officers within the Authority have, in consultation with the relevant Chairs of the committees/panel, undertaken a review of the current structure to examine how current processes can, where appropriate be improved. The outcome of these discussions are as follows:-

Estates Panel

3. The Estates Panel was established in October 2008 to review the estates strategy and associated communication strategy. It however is not a formal Sub- Committee and does not have any delegated powers. Given the sensitivity of many of the issues discussed at the estates panel, and due to concerns raised by the panel that formalising the current arrangements may impact on the panels effectiveness, it is recommended that the panel continues to be a panel with no delegated powers. However as the initial purpose of the panel is nearing completion, with the estates communication strategy now approved and the Estates Strategy due to be considered by Finance and Resources in July. It is recommended that the original terms of reference are reviewed and proposed revisions made to a future Finance and Resources Committee meeting for approval.

Olympics Sub Committee

4. The Olympics business cases are substantial and complex, and effective scrutiny of them is time consuming. Therefore, responsibility for this has been delegated to the Olympics Sub Committee, which is able to dedicate time to ensuring business cases are robust and represent value for money. The Sub Committee then recommends approval of the preferred option to Finance and Resources Committee before submission of the business case to the Home Office for approval for grant funding.

5. Given the high profile nature of the Olympics and the associated risks it is not felt appropriate to delegate authority for the approval of business cases to the Sub Committee. However, there is a need to put in place an urgency arrangement to ensure, under exceptional circumstances, the Authority can approve a business case, or proposed amendments to a previously approved business case rather than delay progress through waiting for the next relevant cycle of committee meetings.

6. Therefore it is proposed that where an urgent decision is required the Chief Executive in consultation with the Chair of Finance and Resources Committee and the Chair of the Olympics Sub Committee should be given delegated authority to approve the business case for submission to the Home Office. With their decision and associated papers being reported retrospectively to the next Olympics Sub Committee and Finance and Resources Committee.

Resources and Productivity Sub Committee

7. Resources and Productivity Sub Committee are currently responsible for scrutinising all contracts and making recommendations to Finance and Resources Committee. They however have no delegated powers. A recommendation to give delegated authority to the Sub Committee for contracts with a value of £30M or below was not approved when discussed at Finance and Resources Committee in March 2009.

8. There are concerns however that the current process is leading to unnecessary duplication and unnecessary delays in the decision making process. Therefore, based on the value of contracts considered by the Authority since the inception of RAP and taking into account the need to have in place governance arrangements proportionate to the risk involved, it is proposed that Resources and Productivity Sub Committee is given delegated authority to approve all contracts with a value greater than £5M and less than £35M. This will enable the Sub Committee to consider the majority of proposed contracts (in excess of £5M) whilst ensuring that Finance and Resources Committee retain responsibility for the larger value contracts.

9. There would however need to be exceptions to the general application of this delegation. Any contract considered by either the Treasurer, Chair of Finance and Resources Committee or Resources and Productivity Sub Committee to raise questions of principle of financial policy, possess unusual features, involve particular risks or which might arouse particular public interest or publicity would need to be referred to Finance and Resources Committee for consideration.

10. Subject to Finance and Resources Committee approval it is recommended that proposed changes re Olympics Sub Committee and Resources and Productivity Sub Committee are referred to Full Authority for approval. A review of the terms of reference of Finance and Resources Committee and its Sub Committees (including the estates panel) will also be undertaken with recommendations made to a future Finance and Resources Committee.

C. Race and equality impact

None directly from this report

D. Financial implications

Whilst changes to the current scheme of delegation have no cashable financial implications, there are non cashable benefits from having a more efficient approval process in place.

E. Legal implications

None given.

F. Environmental implications

None given.

G. Background papers

• None

H. Contact details

Report author(s): Annabel Adams – Deputy Treasurer

For more information contact:

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

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