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Rural Payments Agency (RPA) Review – Terms of Reference

Context

1. The RPA is now in its fifth year of operation. The world in which it operates has changed significantly in that time, and its tasks and functions have developed and expanded in consequence. The Agency has taken on the significant change task of delivering CAP Reform through the Single Payment Scheme, become the operational delivery body for the Livestock ID programme, the Defra Customer Register, and the Land Register; has taken over running of a number of Defra help-lines, and has absorbed the British Cattle Movement Service. It is no longer a relatively straightforward paying agency, but a multi-faceted delivery body.

2. Accordingly it is timely to take a detailed look at the kind of body we now require the RPA to be, and to consider whether it possesses the infrastructure and skills to deliver what we are asking it to. We should also look at how Defra itself manages the relationship, in terms of tasking and accountability – and consider whether present governance arrangements are fit for purpose.

Terms of Reference

3. The Review will address the following questions:

  1. What should be the core functions and responsibilities of the RPA going forward, taking into account the new strategic context and operating environment as outlined below? What will the RPA’s role be within the Defra family, and what relationships does that imply? This should be considered in terms of overall coherence of function, and within a timeframe of five to ten years and will include:
    1. Mapping present and planned RPA activities;
    2. Considering whether the RPA should be engaged in these activities, or can they be better placed elsewhere;
    3. Defining the relationship the RPA should have with Defra and other delivery bodies with respect to these activities;
    4. Developing a business case for shifting any activities which are to be moved to a new body.
  2. Is the balance of SPS delivery and other RPA priorities in 2006/7 adequately reflected in its current business targets?
  3. What does RPA require in terms of management structures, culture and organisation, skills and capacity to deliver successfully?
  4. What does a first-class paying agency look like, and how can we support RPA in achieving that status?
  5. What level of funding is required to support the RPA in delivering the range of functions and activities for which it is now responsible and the delivery of on-going efficiencies?
  6. Is the present Defra governance of the Agency as owner, policy sponsor and corporate sponsor adequate to provide clear and prioritised tasking, and to hold it to account for delivery?
  7. What does Defra need to do immediately, and in the medium to longer term, to help the Agency to strengthen its capabilities, including in terms of the management of IT suppliers, and any immediate personnel, management or succession issues?
  8. Are there any generic conclusions Defra can draw from this review concerning policy/delivery partnerships, and the skills required on both sides to make these effective?
  9. Do present governance arrangements, including the RPA Ownership Board, provide the appropriate means of assurance for Defra with respect to performance management, and prioritisation of tasks for the RPA?
  10. Reviewing, and where necessary making recommendations, to Scottish and Welsh Ministers about services which RPA delivers on their behalf.

4. The Review should consider the following RPA activities and functions as being within scope:

  1. Delivery of paying agency business as usual in terms of making payments, livestock tracing, inspections and enforcement, consistent with maintaining status as a UK paying agency.
  2. Delivery of the Single Payment Scheme to timetable and within disallowance targets, and including the new EU sugar regime.
  3. Costs of implementation of this and other deliverables; for 2005/6, 2006/7 and in projected future budgets.
  4. Delivery of stated efficiencies through the RPA Change Programme – in terms both of staff and funding.
  5. Participation in the Defra Shared Services operations.
  6. Delivery of and governance and operation of the Defra livestock register, customer register and land register to timetable and within appropriate budgets.
  7. Operation as the agricultural thematic regulator under Hampton.
  8. Overall financial management of the Agency, including the delivery of stated efficiencies in headcount and budgets.
  9. Operating culture of the organisation, including governance and performance management, relationships with suppliers and stakeholders, and management capacity and skills.

Conduct of the Review

5. The Review will be led by David Hunter, Director of European Union and International Policy Directorate, and overseen by a small steering group chaired by Defra’s Chief Operating Officer, Andrew Burchell. This group will include Professor Georges Selim, non-executive on the RPA Board and chair of their Audit and Risk Committee, and Karen Jordan from National Grid and a non-executive member of Defra’s Audit and Risk Committee and member of the CAP Reform Implementation Programme Board. The review will start in April 2006, and should be complete before the end of 2006. Full consultation with government stakeholders and interested parties will be built into review processes.

Page last modified: 16 March 2006
Page published: 16 March 2006

Department for Environment, Food and Rural Affairs