New Anglia Local Enterprise Partnership

Audit and Risk Committee

Thursday 11^th February 2021

9.30am to 11.30am

Via Teams meeting

Agenda

Committee Members

Nick Banks (Chair)

Scrutton Bland

Corrienne Peasgood

City College Norwich

Holly Field

Suffolk County Council

(Delegation of Authority for Accountable Body S151 Officer)

In Attendance

Rosanne Wijnberg

New Anglia LEP

Melanie Richardson

New Anglia LEP

Aaron Widdows

Price Bailey

Alice Boesen

Price Bailey

Apologies

Sam Chapman-Allen

Breckland District Council

No.

Item

Welcome & Introductions

Apologies

Declarations of Interest

Minutes from last meeting

Items for discussion

Annual review and approval of:

 Terms of Reference

For approval

 Scheme of Delegation

 Accountable Body Agreement

Review of Audit plan - presented by Price Bailey - Confidential

For approval

Review of corporate risk register - Confidential

Update

Local Assurance Framework monitoring

Update

Meeting Schedule and Dates

Discussion

10.

Any Other Business

Date of next meetings: Provisionally Tuesday 29 June 2021 at 9.30am & xx February 2022

New Anglia Audit and Risk Committee Minutes (Unconfirmed)

13^th February 2020

Present:

Nick Banks (NB)

Independent Chair

Corrienne Peasgood (CP)

Norwich City College

Holly Field (HF)

Suffolk County Council (Deputising for Accountable Body

S151 Officer)

In Attendance:

Rosanne Wijnberg (RW)

New Anglia LEP

Keith Spanton (KS)

New Anglia LEP

Melanie Richardson (MR)

New Anglia LEP

Lisa Roll (LR)

New Anglia LEP

Stephan Schmitt (SS)

Price Bailey - For item 6

Apologies:

Sam Chapman-Allen (SC-A)

Breckland District Council

Actions from the Meeting

MR to circulate the updated risk register to include risks 21 and 22 which had dropped off in the pdfing

process

Welcome and Introductions

Nick Banks (NB) welcomed everyone to the meeting including Corrienne Peasgood (CP) who was

appointed to the Audit and Risk Committee on 1^st January 2020.

It was proposed that item 6, Review of Audit Plan be addressed first. This was agreed by the meeting.

Apologies

SC-A gave his apologies.

Declarations of Interest

Full declarations of interest can be found at https://newanglia.co.uk/our-board/

CP declared an interest re Norwich City College.

Minutes from last meeting

The minutes were reviewed and agreed.

The action on dual controls on the Lloyds bank account was noted.

Annual review and approval of Terms of Reference, Scheme of Delegation and

Accountable Body Agreement

The Terms of Reference, Scheme of Delegation and Accountable Body Agreement were reviewed and

agreed.

Review of Audit Plan - presented by Price Bailey - Confidential Item

Review of corporate risk register - Confidential Item

MR provided an update of the key changes to the risk register since the last meeting.

Local Assurance Framework monitoring

MR explained that the LEP’s Assurance Framework outlines the way we work and the National Local

Growth Assurance Framework Annex E checklist provides the basis for our compliance monitoring

arrangements. MR explained that Annex A summarised the key areas of the checklist and set out the

results of the quarterly monitoring undertaken. The quarterly reviews were largely based on website

checks and there was improvement between the first review in September and the follow up in

December. Minor issues remained re old website links but it was noted that our new website

development will mitigate the risk of outdated links.

RW also noted that no compliance issues were raised as part of our Annual Performance Review

process.

Meeting Schedule and Dates

It was agreed that the next meeting would be at 1pm on Tuesday 23^rd June (The Cornhill, Diss).

Any Other Business

It was noted that this would be Keith Spanton’s last Audit and Risk Committee before leaving the LEP.

The Committee thanked KS for his work at the LEP and wished him well for the future.

Audit and Risk Committee

Thursday 11 February 2021

Agenda Item 5

New Anglia LEP Governance: Terms of Reference, Scheme of Delegation,

Accountable Body Agreement

Author: Melanie Richardson

Summary

We are required to review the Terms of Reference, Scheme of Delegation and the Accountable

Body Agreement on an annual basis to ensure they are in line with any newly published

Government guidance and that all the information contained in them is accurate and up to date.

To facilitate review we have highlighted the amendments in the attached documents and noted

the key changes below.

Recommendation

The Audit and Risk Committee recommends the Board approves the:

Terms of Reference

Scheme of Delegation

Accountable Body Agreement

Background

The Terms of Reference outline the purpose, membership and authority of the committee and

should be reviewed on an annual basis.

New Anglia LEP’s Scheme of Delegation sets out the main responsibilities and functions of the

organisation and the level to which they have been delegated. It is a requirement of the National

Local Growth Assurance Framework for the LEP to have a comprehensive Scheme of Delegation

which is reviewed and updated annually. This has been updated to include reference to the

Getting Building Fund, the Business Resilience and Recovery Scheme and our wider strategy

documents.

The Accountable Body Agreement is a key element of the LEP’s Governance arrangements,

alongside the Articles of Association, the Assurance Framework and Scheme of Delegation. It

sets out the respective roles of the LEP and Suffolk County Council as the Accountable Body.

This has been updated for the Getting Building Fund and the Business Resilience and Recovery

Scheme.

LEP Audit and Risk Committee

Terms of Reference

Purpose

To ensure the development and implementation of the LEP’s polices on strategic risk management,

financial reporting, audit process, system of internal controls, providing oversight and monitoring the

integrity of these systems and ensuring compliance with the assurance framework.

Responsibilities

•

Ensure that appropriate procedures are in place to identify, assess and manage risk from a

strategic and operational perspective, to monitor implementation of Risk Management

procedures and to report to the LEP Board as necessary.

•

Manage strategic risk and have oversight of the operational risk which is managed by the

Management Committee.

•

Oversee the company’s relations with the external auditor and has primary responsibility for

making a recommendation on the appointment, reappointment and removal of the external

auditors.

•

Assess the independence and objectivity of the external auditor annually, taking into

consideration relevant UK law, regulation and professional requirements.

•

Review the effectiveness of the company’s internal financial controls (that is, the systems

established to identify, assess, manage and monitor financial risks.

•

To review, and challenge where necessary, the actions and judgements of management in

relation to the annual financial statement.

•

to review and to provide advice on whether the Annual Report and financial statements, taken

as a whole, are fair, balanced and understandable and provide the information necessary to

assess the company’s performance, business model and strategy.

•

Oversees the development, implementation annual review of the LEP’s Assurance

Framework.

Membership and Appointment

The committee will consist of four members. An independent Chair will be appointed by the LEP

board, the Accountable Body s151 Officer and two LEP Board members who are also appointed by

the LEP Board. The LEP Chairman, members of the Investment Appraisal Committee and members

of the Leadership Team shall not be members of the Committee. The accountable body s151 officer

be allowed to delegate authority to a suitable representative from the Suffolk County Council team.

Quorum

The quorum necessary for the transaction of business shall be three of which include the

independent Chair and the Accountable Body s151 Officer, or authorised representative. Substitutes

may only be accepted in exceptional circumstances and only for public sector members at the

discretion of the Chair.

Attendance of non-members at meetings

The LEP COO will provide management support. Other attendees include the Finance and

Governance Manager, other individuals with oversight of risk, and a representative of the external

auditor shall attend meetings at the invitation of the Committee. Other members of LEP Leadership

Team may also be invited to attend meetings when required.

Meeting Frequency

Meetings shall be held twice a year and, where appropriate, will coincide with key dates in the LEPS’s

financial reporting cycle. The Chair of the Audit & Risk Committee, LEP COO or external auditor may

request a meeting if they consider that one is necessary.

Delegated Authority including limits

The Committee is authorised by the LEP Board to investigate any activity within the Committee’s

terms of reference and, within its scope of responsibilities, to seek any information it requires and to

ensure the attendance of management representatives at meetings as appropriate. The Committee

has the authority to obtain outside legal or independent professional advice. The advisers may attend

meetings as necessary and the cost of the advisers shall be within budgetary constraints.

Reporting procedures

Relevant key points will be reported through the LEP Board and recorded in the Board minutes which

are published on the LEP website.

Review

The Committee shall, review its own performance once a year and terms of reference to ensure it is

operating at maximum effectiveness and recommend any changes it considers necessary to the

LEP Board for approval.

The membership of the Committee will be reviewed annually.

Last updated/reviewed:13 February 2020

Appendix 1

New Anglia LEP Scheme of Delegation

Context

The New Anglia Local Enterprise Partnership is company limited by guarantee, with 18

voluntary directors, supported by a full-time executive team.

This scheme of delegation sets out the main responsibilities and functions of the organisation

and the level to which they have been delegated.

The scheme of delegation is part of a suite of LEP governance documents including:

Local Assurance Framework, Articles of Association, terms of reference for sub-boards and

sub-committees, and agreement between Suffolk County Council (accountable body) and the

LEP.

The scheme of delegation is reviewed annually and changes require board approval. Any

decision taken in contravention of this scheme of delegation will be deemed invalid.

Key responsibilities of the LEP Board

The board is responsible for:

 Approving the strategic direction of the LEP

 Agreeing clear objectives to focus activity and drive ambition

 Ensuring the LEP runs efficiently and effectively with appropriate controls in place

covering performance, finance and risk

 Upholding the values, ethos and culture of the organisation

Key responsibilities of the Accountable Body

 The Section 151 Officer or their appointed deputy is a core member of the Audit and

Risk Committee.

 The Section 151 Officer is accountable for approving all Growth Deal and Getting

Building Fund grant agreements, and delegates authority to a suitable team member for

approval of grants awarded under other LEP programmes.

Last Updated: March 2020, confirmed at the LEP Board on 25^th March 2020.

Scheme of Delegation

Issue

Delegated To

Strategy

Vision, mission and values

Board

Development and approval of Economic Strategy,

Board

Local Industrial Strategy and Restart Plan

Implementation of Economic Strategy,

Board (on recommendations from

Local Industrial Strategy and Restart Plan

relevant sub-boards)

Changes to the overall operating structure of the LEP

Board

Approval of the Organisation brand

Board

Programmes

Design of capital and revenue funding programmes

Board (on recommendations from

Investment Appraisal Committee

and relevant sub-boards)

Awarding of capital or revenue funding to programmes

Board (on recommendations from

above £500k

IAC)

Awarding of capital or revenue funding to programmes

IAC

£500k or below

Awards from Growing Business Fund up to £500k

GBF panel (overseen by the IAC)

Awards from Business Resilience and Recovery Scheme

CEO/COO/Head of Programmes

up to £50k

In programme funding changes above £100,000

Board

In programme funding changes up to £100,000

IAC

Change requests from programmes/projects with no

IAC

financial implications but major changes to outputs

or timeline

Change requests from programmes/projects with no

CEO - reported retrospectively to

financial implications but minor changes to outputs

the Board quarterly

or timeline

Governance

Responsibility for compliance with Government

Chair and CEO

National Assurance Framework

Board

Annual declaration of compliance to Government

Suffolk County Council 151 Officer

Maintenance of Register of Interests

Board and CEO

Timely publication of agendas, reports and minutes

Chair, CEO and COO

Committee and Delivery Board appointments

Board

Code of conduct, Complaints and Whistleblowing policies Board

Finance

Approval of financial budgets and forecasts

Board

Approval of annual accounts and financial statement

Board on recommendation

and audit letter of representation

from Audit and Risk Committee

Approval of bank account and mandate policy

Board on recommendation of Audit

and Risk Committee

Treasury policy

Board on recommendation of Audit

and Risk Committee

Bank investments execution

Audit and Risk committee

Prior authorised expenditure for day to day business, in

accordance with strategy budget and approved policies:

Over £150,000

Board

Between £50,000 and £150,000

Chair and CEO or COO

Up to £50,000

CEO and COO

Human Resources

Performance management and remuneration of CEO

Chair and Remuneration Committee

Recruitment of board members

Board (with recommendations from

sub panel comprising board

members)

Recruitment of CEO

Board (with recommendations from

sub panel comprising board

members)

Operational procedures and policies for Leadership team

COO in conjunction with CEO and

and below

Leadership team

Appendix 2

THIS ACCOUNTABLE BODY AGREEMENT (ABA) IS MADE ON 24^th February

2015 BETWEEN

(1) NEW ANGLIA LOCAL ENTERPRISE PARTNERSHIP of Centrum, Norwich

Research Park, Norwich, NR4 7UG (New Anglia LEP) and

(2) SUFFOLK COUNTY COUNCIL of Endeavour House 8 Russell Road

Ipswich IP1 2BX (SCC)

1. INTRODUCTION

1.1

The purpose of this ABA is to set out the framework for respective roles and

responsibilities of New Anglia LEP as the organisation which has

responsibility for making decisions on the project activity that the various

funds set out at clause 2.2 below will support, along with other funding arising

out of the Norfolk and Suffolk Economic Strategy, and SCC (as the

organisation taking on the role of “Accountable Body” for New Anglia LEP and

the funds set out at clause 2.2 below) who will have responsibility for ensuring

that such decisions meet the legal, regulatory and funding criteria applicable

at the time of decision and during the period of the project activity.

2. BACKGROUND AND CONTEXT

2.1

New Anglia LEP has been established to work with businesses and partners

across the education, voluntary and public sector, to help grow jobs in Norfolk

and Suffolk.

2.2

New Anglia LEP and SCC have developed in line with Government guidance

a single assurance framework (“Assurance Framework”) covering all

Government funding flowing through New Anglia LEP, to ensure New Anglia

LEP has robust value for money processes in place. The purpose of the LEP

Assurance Framework is to support the developing confidence in delegating

funding from central budgets and programmes via a single pot mechanism to

LEPs and their accountable bodies. The Accountable Body is required to sign

off the Assurance Framework.

2.3

New Anglia LEP has responsibility for deciding the project activities that

Growth Deal funds will be allocated to which in this ABA, are referred to

collectively as “the Programme”. £290 million has been made available to

New Anglia LEP from 2014 to 2021 as part of the Government’s Growth Deal

programme, for which all 38 LEPs across England have been invited to

compete for an individual allocation. Growth Deals provide funds to local

enterprise partnerships or LEPs for projects and programmes that benefit the

local area and economy.

2.3.1

The LEP has been allocated £32.1m from the Getting Building Fund for a wide-

ranging package of infrastructure projects, for delivery before March 2022.

2.4

New Anglia LEP’s particular objectives for the Programmes can be found in

the relevant chapter of the Assurance Framework and include:

2.4.1

The Growing Places Fund is a recycling loan fund which has been in operation in the

New Anglia region since 2012.

The fund was designed to address the problems facing stalled developments, by

providing financial support towards costs such as site infrastructure, services or

access.

The fund operates predominantly as a loan fund but has awarded small grants where

a regionally significant project can be delivered as a result and where the grant secures

a major match funding contribution. The Growing Places Fund is open to public and

private applicants.

2.4.2

The Growing Business Fund is a grant fund which has been in operation in the New

Anglia region since April 2013. The Fund provides grants between £25,000 and

£500,000 to local businesses across Norfolk and Suffolk.

2.4.3

The Small Grant Scheme is a grant fund that has been in operation in the New Anglia

region since August 2013. The programme is currently part of New Anglia Business

Growth Programme supported from the European Regional Development Fund. It

provides grants between £1,000 and £25,000 to local businesses across Norfolk and

Suffolk.

The programme supports SMEs through the provision of grants to assist them to

grow and expand, employ new staff, introduce new products and services, improve

productivity or efficiency, increase their competitiveness etc.

Small businesses employing less than 50 people may apply for up to 20% of the

costs of the project under General Block Exemption Regulations (GBER) Articles 14,

17, 18 and 19. Medium sized businesses may apply for funding of up to 10% towards

the project cost or 20% if regulated by De Minimis regulations (EUR 200,000 is a

maximum amount of all De minimis aid a business may receive over a 3 year fiscal

period). SMEs based in an Assisted Area may apply for an additional 10% of funding.

2.4.4

The Business Resilience and Recovery Scheme has been established to support

businesses during the COVID-19 pandemic and during the economic recovery. It will

provide grants to support short-term business resilience projects and longer-term

recovery and diversification projects. The fund provides grants between £25,000 and

£50,000.

3. TERM AND TERMINATION OF ABA

3.1

This ABA, once signed by both parties, will be deemed to have come into effect

on 7^th July 2014 and will continue in place until 31 March 2021 unless it is

terminated in accordance with the other provisions of clause 3. The ABA can

be extended beyond 31 March 2021 if agreed by both parties. There will also

be a ‘light touch’ review each year to allow discussion of progress reported to

the Audit and Risk Committee and early discussion of any changes necessary

in the changing landscape of LEP funding and programming.

3.2

Subject to clauses 3.3 and 3.4 if, at any time during the term of this ABA, either

party wishes to bring the ABA to an end, the following consultation and notice

procedures shall apply:

(a) the party proposing to terminate the ABA must consult the other party about

the termination in good time and in any event, at least, nine months before the

proposed termination of the ABA,

(b) the party terminating the ABA must give at least six months’ written notice

to the other party,

3.3

If a party to the ABA commits a material breach of any term of the ABA, the

other party may send a written notice to the breaching party, setting out the

nature of the breach and the required remedy and giving not less than three

months’ notice to remedy the breach. If the breach has not been remedied at

the end of the notice period, then the party who served the notice may serve a

further notice of two months, terminating the ABA.

3.4

Where the operative period for a Programme comes to an end or the funding

under the Programme ceases, this ABA shall terminate in part in relation to that

Programme.

3.5

In any circumstance where this ABA terminates in whole or in part, and without

prejudice to any other rights or remedies the parties may have, the parties must

use their best endeavours to have in place, from the date of termination of the

ABA or the relevant part of the ABA, arrangements for transferring existing

agreements and liabilities, for example under the various grant and loan

agreements that SCC will have entered into on behalf of New Anglia LEP, to a

replacement Accountable Body.

3.6

Where it is not possible for existing agreements and liabilities to be transferred

(or it is agreed that they shall not transfer) and as a result SCC retains some or

all of such liabilities, New Anglia LEP shall indemnify SCC against those

liabilities and shall provide sufficient funding for SCC to meet those liabilities

e.g. under grant and loan agreements.

3.7

New Anglia LEP shall indemnify SCC against any financial costs or liabilities

incurred, including but not limited to redundancy costs, on the termination of the

ABA in whole or in part except where termination takes place under clause 3.3

as a result of an un-remedied breach by SCC.

AGREEMENT

4. ROLES AND RESPONSIBILITIES OF NEW ANGLIA LOCAL ENTERPRISE

PARTNERSHIP

New Anglia LEP shall:

4.1.

Comply with all the regulations and guidance notes from the Ministry for

Housing, Communities and Local Government, Cabinet Office, Department for

Business, Energy and Industrial Strategy, and other relevant funding bodies

including but not exhaustively: state aid regulations, relevant departmental

funding criteria and the wider regulatory framework for the funds included in this

agreement ensuring that funds are used appropriately, and in a manner that is

consistent with the contents of any offer letters from government.

4.2.

Decide the economic growth priorities and strategies for the Programme and

the overall grant allocations in line with the initial submission and the funding

agreement for the Programme.

4.3.

Approve and submit to SCC an annual delivery plan of planned expenditure

and outcome and output targets - this may take the form of a copy of any such

report sent to the LEP Board.

4.4.

Strive to achieve all the outputs and key indicators set out in the delivery plan

for the Programmes and produce an annual progress report as required by the

funding bodies.

4.5.

Develop close working links and joint working arrangements with SCC, other

Local Enterprise Partnerships and other relevant bodies as appropriate.

4.6.

Set up appropriate consultation procedures, business involvement and

membership of New Anglia LEP’s Board to facilitate the development and

implementation of the Programmes.

4.7.

Have in place appropriate processes with funding guidelines and criteria and

make decisions about the approval of projects in accordance with the guidelines

and criteria. This is subject to the requirements of the relevant funding body

and should be in line with the regulatory and legal framework for the funding

after considering any recommendations from SCC. This will include an

appropriate risk appraisal and management process.

4.8.

Agree with SCC and implement policies and procedures for ensuring value for

money in the use of funds, whether by New Anglia LEP or by the organisations

which are funded through the Programmes. This will include the establishment

of and compliance with appropriate procedures relating to:

(a) competitive tendering and procurement where New Anglia LEP is

purchasing goods, services or works. and

(b) the processes to be followed by organisations funded through the

Programmes, for example, by requiring competitive tendering of goods,

services or works funded through the Programmes where appropriate

In relation to (a), if SCC procures and enters into contracts for goods, services

or works for New Anglia LEP, then SCC procurement procedures will be

followed. New Anglia LEP is a contracting authority for the purposes of the

Public Contracts Regulations, so if New Anglia LEP procures and enters into

the contracts then it will do so in line with relevant EU procurement rules and

the internal procedures that are to be established under this clause.

4.9. Ensure that proper procedures exist for the regular monitoring of progress in

implementing the Programmes.

4.10. Evaluate the impact of the Programmes through appropriate measures, if

necessary agreed with SCC, to comply with relevant funders’ requirements.

4.11. Work with SCC in drafting and developing written procedures and appropriate

management, administration, finance and IT systems for the Programmes

covered by this ABA. New Anglia LEP will develop its own procedures which

are outside the scope of this ABA.

4.12.

Ensure that both New Anglia LEP and, to the extent that it is appropriate to the

nature of the relevant project those organisations to whom funding is provided,

have in place effective policies and procedures to:

ensure equality of opportunity and diversity in employment of staff and

delivery of services. These should demonstrate how all parties will

comply with relevant equality legislation and respective Codes of

Practice. Evidence of the implementation of this policy shall be kept

available for inspection.

II.

ensure that all relevant legislation and guidance on state aid is complied

with.

III.

ensure open and transparent commissioning processes are used

including for the purchase of goods and services which adhere to

relevant legal procurement and commissioning processes. This

includes EU procurement rules where relevant.

IV.

ensure the health and safety of staff and service users in compliance

with relevant Health and Safety legislation.

ensure where the project involves work with children and young people,

projects should have in place procedures for ensuring compliance with

relevant Children’s and Young Persons legislation.

VI.

ensure that, in the event of SCC receiving a complaint about New Anglia

LEP or a constituent project, the relevant party/ies is/are required to co-

operate fully with them in the investigation and resolution of the

complaint, including complying with any recommendations arising from

such investigation.

VII.

respond to requests for information under Freedom of Information Act

1998 (FoI) and related legislation. If New Anglia LEP or SCC receive an

FoI request both parties shall provide such information as is required by

them to enable a full response to be made to the request within the

statutory time limit. It is accepted that New Anglia LEP is exempt from

FoI in the body of the legislation but the Assurance Framework issued

by BEIS makes it a requirement that New Anglia LEP complies with the

spirit of this legislation and New Anglia LEP confirms that it will do so. It

should be noted that applicants are currently advised that information

will be treated as commercially sensitive in the event of an FOI request

being received, although this cannot be guaranteed until the individual

circumstance arises.

VIII. comply with The General Data Protection Regulation.

4.13.

Co-operate with SCC or any external or internal auditors appointed and to make

available for inspection all documentation and provide responses to any queries

raised.

4.14.

Work with SCC to ensure value for money and probity are achieved in the

delivery of the Programmes and by individual projects.

4.15.

Ensure that any assistance given to an organisation by New Anglia LEP is

within the limits laid down by any obligation of the European Union or

appropriate funding organisation, and that all relevant procurement procedures

are met; should this not be the case, there will be reduction in, or repayment of,

grant.

4.16.

Make arrangements for the effective monitoring of individual projects within

procedures agreed with SCC and make any necessary changes to achieve

targets and the overall Programme.

4.17.

Ensure that accounts are maintained by relevant officers (particularly the New

Anglia LEP Financial Controller) from New Anglia LEP.

4.18

Permit SCC to use the funds allocated to the LEP to carry out its Accountable

Body role, including the allocation of loan and grant funding to an SCC account

and shall permit SCC to retain such funding until such time as SCC’s obligations

under this ABA and any grant or loan or other agreements made as a result of

the ABA or SCC’s role as Accountable Body are discharged or transferred to a

third party”

4.19

Work with SCC on the creation of the local Assurance Framework and adhere

to its requirements.

5. ROLES AND RESPONSIBILITIES OF THE ACCOUNTABLE BODY - SCC

SCC, through the Section 151 Officer, will have responsibility for ensuring that a local

Assurance Framework is in place, that it meets the standards set out in the LEP

Assurance Framework Guidance document, and that all funding decisions are made

in accordance with it.

SCC shall:

5.1

Ensure decisions and activities of New Anglia LEP conform with legal

requirements with regard to equalities, social value, environment, State Aid,

procurement

5.2

Ensure (through its Section 151 Officer) that the funds identified in para 2.2 are

used appropriately.

5.3

Ensure that the Assurance Framework is adhered to

5.4

Maintain the official record of New Anglia LEP proceedings and holding copies

of all relevant LEP documents related to LGF funding.

5.5

Having regard to its role as Accountable Body for the Programmes, have

responsibility for agreeing or challenging the decisions of the LEP, in the

context of legal, regulatory or funding criteria, when New Anglia LEP are

approving projects. To avoid doubt, as SCC is the Accountable Body, it may,

acting reasonably, decide that it is not appropriate to implement a New Anglia

LEP decision where:



it is unlawful



It contravenes relevant grant or funding guidelines or criteria



It is in breach of financial regulations



It is in breach of the Assurance Framework



It is in breach of any other relevant terms, requirements or policies imposed

on SCC or New Anglia LEP

or there is a significant risk of this. Where SCC considers this to be the case,

it will consult with New Anglia LEP to consider what amendments may be made

in order to address SCC’s concerns and where it is not possible to agree an

approach, the matter will be referred to dispute resolution in accordance with

clause 7.2.

5.6

Ensuring that there are arrangements for internal audit of funding allocated by

New Anglia LEP, at least equivalent to those in place for Local Authority spend.

5.6.1

Act as accountable body for the Programmes. The tasks undertaken by the

Accountable Body to fulfil this role are set out in the Assurance Framework, and

include financial management and overview of spend across all Programmes.

5.6.2 Jointly with New Anglia LEP, ensure that value for money and probity is

achieved in the use of partnership funding and that all guidelines and

procedures as issued by funding bodies are complied with.

5.6.3 Recognise the demands and priorities of New Anglia LEP’s plans in setting its

corporate priorities.

5.6.4 Ensure that proper procedures exist for the regular monitoring of progress in

implementing the Programmes. Evaluate the impact of the Programmes

through appropriate measures, if necessary agreed with SCC, to comply with

relevant funders’ requirements.

5.6.5 Collate and submit to the relevant monitoring body (in the case of City Deal this

is currently: MHCLG and Lancaster University as the intermediary body) interim

and final claims for relevant grant on behalf of New Anglia LEP, receive

payment of funds and arrange an independent audit of the final grant claim and

internal audit of the Programme.

5.6.6 Ensure that suitable financial and accounting procedures are in place for the

Programmes and ensure that arrangements are in place for the audit of the

claims and all systems and procedures including the approval and appraisal

processes of projects. Report any suspected irregularity or probity issues to the

relevant funding body, the New Anglia LEP Board and the Council.

5.6.7 Co-operate with New Anglia or any external auditors appointed and to make

available for inspection all documentation and provide responses to any queries

raised.

5.6.8

Be responsible for achieving the best return on New Anglia LEP funds in line

with an acceptable risk policy agreed by both parties through the Audit and Risk

Committee. New Anglia LEP will provide a funding profile to enable this to be

pursued effectively. SCC will sit on the Audit and Risk Committee which has

oversight of all the programmes within New Anglia LEP’s remit. SCC will

identify one member of staff within finance, to cover off financial and funding

issues.

5.6.9

In agreement with and with all necessary assistance from New Anglia LEP

make the following arrangements:

in certain pre-agreed circumstances arrangements for the provision of

effective management and administration support to New Anglia LEP.

II.

make use of a grant and/or loan agreement and ancillary documents to

enter into a legally binding agreement with funding recipients in relation

to the Programmes.

III.

prepare and submit any financial and non-financial information required

from New Anglia LEP by the funding bodies.

IV.

maintain any required financial management systems and supporting

documentation up to the end date of the Programmes, and then to

transfer all such documents to an appropriate storage location as

required by the relevant funding body

authorise the release of funding in accordance with the requirements of

the relevant funding body.

5.10 Work with New Anglia LEP in drafting and developing written procedures and

appropriate management, administration, finance and IT systems for the

Programmes covered by this ABA. New Anglia LEP will develop its own

procedures which are outside the scope of this ABA.

6. PROGRAMME MANAGEMENT

New Anglia LEP will make all arrangements for effective management and

administration support to the Programmes as necessary. SCC will be paid for support

provided to New Anglia LEP in support of the roll out of funding that has been awarded

between 7^th July 2014 to 31 March 2021 to support the delivery of the Economic

Strategy. This will include a post for finance. SCC will be reimbursed for the support

it provides to manage and administer the individual Programmes. Where possible

some or all of the cost for conducting the accountable body role will be agreed with

SCC and included in the bid submission(s) on behalf of New Anglia LEP. This is likely

to take the form of a 7% ‘top slicing’ of the programmes received by New Anglia LEP

to support resourcing of the Accountable Body role and appropriate staff costs within

New Anglia LEP. Any alternative arrangements for the provision are to be agreed by

the New Anglia LEPs Board following consultation with SCC.

7. MISCELLANEOUS

7.1 AMENDMENTS

If either party wishes to amend this ABA during its term, the party shall submit details

of the proposed amendment in writing for consideration by both parties with a

commitment that agreement be reached within 21 days and where agreement to the

amendment is not reached in this period, the issue shall be referred for dispute

resolution in accordance with clause 7.2 below.

7.2 DISPUTE RESOLUTION

Both parties shall attempt to resolve any disputes or differences by negotiating in good

faith, in the first instance through day to day consultation.

If they fail to resolve a dispute within 21 days from it arising, either party may refer the

matter for determination to a meeting of the following representatives of the parties:

• SCC as Accountable Body - Assistant Director Strategic Development, or

alternative representative of the Accountable Body and

• New Anglia LEP - Chair of Board, or Chief Executive

If the dispute is not resolved within 28 days of its referral to the above group, then the

parties agree to identify, within 14 days thereafter, a suitable independent third party

as an expert or as a facilitator of consideration of the dispute. The identity of this third

party may vary in order to provide the parties with flexibility to select a party who is

appropriate to the particular circumstances of the issue but by way of example, this

may include another local authority, legal Counsel or a mediator. Once the parties

have agreed on a suitable third party, they will refer the matter to that third party within

14 days of agreement and will use their best endeavours to ensure that the dispute is

considered as quickly as possible thereafter and in any event, within 21 days of

referral. The parties will have the flexibility to decide on the terms of reference of the

relevant third party.

7.3 FAILURE TO DELIVER

SCC will have the right to take appropriate action in respect of a funding recipient, in

accordance with the terms of the funding recipient’s grant or loan agreement, including

withholding of payment as a result of any breach of the terms of the grant or loan

agreement and/or failure to take account of the regulatory or legal framework including

state aid guidance. Payment may be resumed once the failure has been remedied.

7.4 WAIVER

The failure or delay of either party in exercising any right or remedy in response to the

action or lack of action of the other party under the terms of this agreement will not

prevent them doing so at a later date nor operate as a waiver.

υτ

7.5 CONFIDENTIALITY

Each party agrees to keep confidential such information as it may acquire from time

to time in relation to the other party where such information is by its nature confidential.

Neither party shall use the other’s confidential information for any purpose other than

to perform its obligations under this ABA. This shall not apply if both parties agree to

its disclosure or where disclosure is, in the opinion of the discloser, is necessary to

comply with the Data Protection Act 1988 or Freedom of Information Act 2000.

7.6 GOVERNING LAW AND JURISDICTION

This ABA is intended to be legally binding and shall be governed by and construed in

accordance with English law and, without affecting the dispute resolution procedure

set out in clause 7.2, each party agrees to submit to the exclusive jurisdiction of the

courts of England and Wales.

7.7 NO PARTNERSHIP

Nothing in this ABA is intended to, or shall be deemed to; establish any partnership or

joint venture between the parties.

7.8 SIGNATURES

By signing this ABA both parties have agreed to the terms and conditions set out in

the ABA (including contribution to costs) under which SCC will undertake the

Accountable Body role.

Signed for and on behalf of

New Anglia Local Enterprise

Partnership by:

…………………………………………………..

Chief Executive of New Anglia LEP (Chris Starkie)

Signed for and on behalf of

Suffolk County Council by:

………………………………………………….

Authorised Signatory

Last Updated: March 2020, confirmed at the LEP Board on 25th March 2020.

υυ

New Anglia Local Enterprise Partnership

Audit and Risk Committee

Thursday 11 February 2021

Agenda Item 8

New Anglia LEP Governance - Local Assurance Framework monitoring

Author: Melanie Richardson

Summary

The LEP’s Assurance Framework outlines the way we work. This paper presents the results of

our quarterly monitoring of compliance with mandatory requirements and best practice

guidelines.

Recommendation

The Audit and Risk Committee is asked to note the results of monitoring our compliance with

New Anglia LEP’s 2020 Local Assurance Framework.

Background

The National Local Growth Assurance Framework explains how LEPs should appraise, monitor

and evaluate schemes to achieve value for money. It provides Government, stakeholders and

the public with the necessary assurances that LEPs have the policies and processes in place to

ensure the robust stewardship of public funds. It contains mandatory governance, accountability

and transparency requirements and non-mandatory best practice.

New Anglia LEP’s 2020 Local Assurance Framework follows the mandatory requirements and

additional best practice guidance set out in the Government’s National Local Growth Assurance

Framework, which seeks to provide a common framework of understanding of the assurance

required for local growth funding. The 2020 Local Assurance Framework can be viewed under

‘About the LEP Board’ here https://newanglia.co.uk/governance-decision-making-and-faqs/

New Anglia LEP’s 2020 Local Assurance Framework was approved by the LEP Board in March

2020. This is due for update in March 2021.

Key issues

Monitoring Compliance

The National Local Growth Assurance Framework Annex E checklist provides the basis for our

compliance monitoring arrangements. A member of the leadership team has been assigned to

each of the areas identified in the checklist and they take accountability for monitoring compliance

for their area, with the Finance and Governance Manager undertaking spot checks as required.

Compliance against the checklist is reviewed on a quarterly basis and reported to Audit and Risk

Committee twice per year. Annex A attached sets out the results of our September and December

quarterly reviews.

Due to the impact of Covid-19 Ministers agreed certain exemptions and extensions to the

conditions of the National Local Growth Assurance Framework. To date we have not needed to

place any reliance on these exemptions.

The LEP Chair and Chief Executive and the s151 Officer also provide an annual Governance

Assurance Statement as part of the Annual Performance Review confirming that the LEP is

compliant with its Assurance Framework. We are required to publish our Governance Assurance

Statement on our website. This has recently been updated and can viewed here.

Recommendation

The Audit and Risk Committee is asked to note the results of monitoring our compliance with

New Anglia LEP’s 2020 Local Assurance Framework.

Annex A

Quarterly Review of the Local Assurance Framework (LAF)

LAF requirement not met

Minor updates required

LAF requirement met

Annex E

Sept 20

Dec 20

Local Assurance Framework

Compliance issue / comment

Checklist

review

requirement

ref

Alignment with the Accounting Officer System

1-5

Local Assurance Framework on website although some cross-

Statement

referencing links lost.

Website page added which hosts documents which support

our Local Assurance Framework.

For our next LAF update we are considering linking to web

pages rather than specific documents and HTML formatting to

meet accessibility requirements.

Corporate structure for LEPs

Local Assurance Framework & website

15-23

Websites

Local Engagement

25-26

Appointment Process for Board Members and Chairs

27-28

Diversity Statements

Board renumeration and LEP Officer salaries

Code of Conduct

Conflicts of Interest

Minimum requirement is for the Board and Chief Exec. All on

website. One later one to be uploaded. A couple of stragglers

on 6 monthly update but due to nature expected.

Complaints for Third Parties and the Public

35-37

Whistleblowing Policy

Publication of meeting and agenda items

Handling confidential and exempt information

Annex A

Management of Contracts

Government Branding

Accountability and decision making

43-54

The LEP Board

55-57

Chair and Deputy Chair

58-60

LEP Staff and Independent Secretariat

LEP Network: cooperation, collaboration and

62-63

partnership with other LEPs

The Accountable Body and Section 151 Officer

64-65

Section 151 Officer Role

Decisions relating to LEPs awarding public funds

67-80

Sept checks - updates in progress to Committee membership

etc following Doug standing down, C-J Green becoming Chair

following AGM 23rd Sept. As expected.

Scrutiny and Audit arrangements

Website requirements

Sept checks - website footer policy links on a couple of pages

require update to latest versions. Board Attendance &

Observers Policy to be added to website.

Annual Assurance Statement - links lost, same issue as LAF

above.

Dec checks - a couple of policy links didn’t click through. No

issue on Annual Assurance Statement.

The LEP should ensure that it uses the correct

Added for future checks. MHCLG spot checks found that clear

Government branding on any relevant website page.

use of government logos and branding could not been seen on

Additional guidance provided to LEP.

the website. Website updated under Growth Deal, Growing

Places Fund and Getting Building Fund.