Department for Environment, Food & Rural Affairs

Framework Document

The Royal Commission on Environmental Pollution
and the Department of the Environment, Transport
and the Regions

Annex C

Delegation of Financial Management Responsibilities to the Secretary to RCEP

Financial Management Responsibilities of the Secretary to the Royal Commission on Environmental Pollution

Introduction

C.1 This minute delegates to you, as the Secretary to the Royal Commission on Environmental Pollution (RCEP), responsibility for the management of the administrative resources used by RCEP. I will notify you separately of the resources allocated to RCEP in each financial year, together with an indicative allocation for the subsequent two financial years.

C.2 The delegation set out in this minute supersedes any previous delegations and is personal to you. I look to you to seek approval from me for any necessary changes to the delegation. You will need to consider what further sub-delegations of these responsibilities to staff in the Secretariat would be appropriate.

Financial Management Responsibilities

C.3 As Secretary to RCEP your financial management responsibilities are as follows.

Accountability

C.4 You are responsible to the Chairman and Members of RCEP for the application, in accordance with RCEP's priorities, of the Secretariat's staff, financial and other resources to the progress and conduct of studies and other RCEP business. You should ensure that proper advice is given to the Chairman and Members on the financial aspects of any matter which involves the expenditure or use of the resources made available by DETR. In particular, you may advise on the economy, efficiency and effectiveness of expenditure proposals and RCEP's actual or proposed use of staff.

C.5 If you have reason to believe that the position of DETR's Principal Accounting Officer might be called into question as a result of the financial aspects of a decision by the Chairman and Members, or that such a decision might conflict with your financial management responsibilities, you should inform the Chairman in writing. Should the Chairman and Members nevertheless choose to proceed, you shall comply with their written instructions and inform the Head of EPSD.

C.6 You are responsible for the propriety and regularity of RCEP's financial activities. In this you are answerable to the Head of EPSD, and ultimately to the Principal Accounting Officer.

C.7 You shall ensure that all public funds made available to RCEP are safeguarded and applied only to the purposes of RCEP in accordance with its Royal Warrant and the ambit of the Vote for 2000-01 (in subsequent years the Request for Resources) approved by Parliament. You shall ensure that the Secretariat takes financial considerations fully into account at all stages in the preparation, making and implementation of decisions.

Provision of information

C.8 You shall provide briefing and information, which may be requested by the Head of EPSD or DETR's Finance Directorate for budgeting purposes or to respond to the NAO or to Parliamentary business relating to RCEP's financial management.

Financial management controls

C.9 You are under a duty to ensure that the necessary sub-delegations and staff instructions (giving authority to commit expenditure, award contracts, make payments, etc) are in place, and staff are properly trained, organised and supervised; and that economic, efficient and effective internal arrangements are made, maintained and kept under review for the proper financial management of the Commission's affairs. This should include:

  • recording the expenditure and receipts incurred by, and assets held on behalf of, RCEP;
  • the preparation of estimates of future expenditure (and any receipts which may be received), as may be needed by RCEP or requested by the Department;
  • the control of contractual commitments on behalf of RCEP;
  • the certification of claims by Members for the payment of fees in accordance with the rates prevailing;
  • the authorisation of payments for travelling and subsistence to Members of RCEP and Secretariat staff;
  • the certification and authorisation of other payments on behalf of RCEP;
  • the monitoring and control of expenditure and receipts against the approved budget and providing outturn information as requested by FARM;
  • the collection of any money due to RCEP;
  • the safe custody of any cash and any property held on behalf of RCEP;
  • the effective management of RCEP's assets;
  • providing independent and effective checks of cash balances and other assets including stores, equipment or property of any kind;
  • ensuring proper, effective and timely follow-up action to NAO and other audit reports and FMPR reports in consultation with the Head of EPSD and the Finance Directorate;
  • seeking the approval of the Head of EPSD before incurring any expenditure of a novel or contentious nature or raising or guaranteeing any loan, or giving any indemnity or acquiring any interest in land; and
  • seeking the approval of the Head of EPSD before making any disposal expected to realise more than £2,000 of any fixed asset that has been purchased with public funds or making any disposal at less than market value.

Monitoring

C.10 In addition to quarterly monitoring, if you at any time believe there will be insufficient provision to fulfil RCEP's programme for the year, you must promptly inform the Head of EPSD, who should also be informed of any significant underspends that are forecast. New commitments affecting the current and subsequent years shall not be entered into before the allocations (final or indicative) for those years have been notified to RCEP except with the prior approval of the Head of EPSD, who may need to consult FARM.

C.11 You shall ensure that discrepancies between ASP reports and RCEP's internal records are investigated and resolved.

Procurement

C.12 As Secretary to RCEP you shall ensure that all contracts let by RCEP, whether for works, consultancies, stores or services are designed to secure best value for money and comply with the Public Procurement Guidelines
(November 1998: www.hm-treasury.gov.uk/pub/html/cup/procpol.html). Procurement circular 2/99 gives good practice guidance for organising procurement and further advice may be sought from DETR Procurement Policy and Advice Division. You may approve contracts up to £30,000 (including VAT).

C.13 Contracts should normally be let on a competitive basis, with the reasons for rejecting unsuccessful bids being recorded. However, RCEP may without further justification make purchases under DETR call-off contracts or the G-CAT service of the Central Computer and Telecommunications Agency without obtaining any other quotation and may enter into contracts for £500 (including VAT) or less on the basis of a single quote without further justification. You may approve single tender action for contracts up to £30,000 (including VAT) subject to the following:

  • the case falls within the criteria for single tender action set out in Procurement circular 2/99;
  • the reasons for the single tender action are recorded;
  • the contract is not with a former civil servant;
  • you are not the officer nominated to be responsible for the project in question;
  • where appropriate, the fees are within rates approved by DETR; and
  • details of all single tender action are reported annually to the Head of EPSD (see B.6).

All other cases where you propose to place orders or contracts without competitive tendering are subject to the prior agreement of the Head of EPSD.

C.14 You shall ensure that, where purchases of information and communication technology (ICT) equipment or services are not made from the current DETR Information Technology Standards List or under a DETR call-off contract, an adequate technical assessment is made to ensure that the purchase is appropriate and represents value for money. For this purpose RCEP will consult DETR IT Services Division, and, in particular must obtain their views before undertaking any major upgrade of RCEP's IT system.

Receipts

C.15 You should seek to maximise any receipts for the provision of facilities, publications or services.

Management and disposal of assets

C.16 You are responsible for the effective management of all RCEP's assets and for ensuring that adequate arrangements are in place:

  • to maintain and keep up to date records of all its assets;
  • to ensure that the property is maintained (as a minimum, to comply with health and safety legislation, recommendations and codes); and
  • to ensure accommodation costs represent value for money. Normally, disposals of assets shall be at market value (i.e. the best price reasonably obtainable).

Losses

C.17 You shall not write off any losses but shall refer all such cases at the earliest opportunity to EPSD who should refer them to FARM with comments.

Fraud

C.18 You shall ensure that all cases of attempted, suspected or proven fraud shall be reported to the head of EPSD, who should refer them to the Internal Audit Service and FARM as soon as they are discovered, irrespective of the amount involved. Reports shall be in the form specified in the Annexes to Chapter 31 of Government Accounting.

Guidance

C.19 In all these matters you shall comply with the requirements of 'Government Accounting', DETR's Resource Management Guidance (including the volumes on procurement), guidance in "Procurement in DETR-External Consultancy" and any other relevant Departmental codes, instructions and guidance. You should put into effect any recommendation of Parliamentary Committees or other Parliamentary authority which relates to your financial and management responsibilities and have been accepted by the Government.

 

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Published 26 February 2001
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