New Anglia Local Enterprise Partnership
Audit and Risk Committee
Wednesday 9
th
February 2022
11.00am to 1.00pm
Via Teams meeting
Agenda
Committee Members
Nick Banks (Chair) Scrutton Bland
Corrienne Peasgood City College Norwich
Stuart Dark King’s Lynn and West Norfolk Council
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
Lisa Roll New Anglia LEP
Aaron Widdows Price Bailey
Stephan Schmitt Price Bailey
Kelly York Price Bailey
Apologies
None
No. Item
1. Welcome & Introductions
2. Apologies
3. Declarations of Interest
4. Minutes from last meeting
Items for discussion
5. Review of Audit Planning Report – presented by Price Bailey - Confidential For approval
6.
Annual review and approval of:
Terms of Reference
Scheme of Delegation
A
ccountable Body Agreement
For approval
7. Review of corporate risk register - Confidential Update
8. Local Assurance Framework monitoring Update
9. Meeting Schedule and Dates Discussion
10. Any Other Business
Date of next meetings: Provisionally xx June 2022
1
1
New Anglia Audit and Risk Committee Minutes (Unconfirmed)
11
th
February 2021
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
Melanie Richardson (MR)
New Anglia LEP
Helen Wilton (HW)
New Anglia LEP
Aaron Widdows (AW)
Price Bailey – For item 6
Alice Boesen
Price Bailey – For Item 6
Actions from the Meeting
Governance Documents
RW to amend Scheme of Delegation and note that Treasury Policy is that of Suffolk CC. A one page
document confirming these processes will be produced.
1
Welcome and Introductions
Nick Banks (NB) welcomed everyone to the meeting.
It was proposed that item 5, Review of the Audit Plan be addressed first. This was agreed by the
meeting.
2 Apologies
Apologies were received from Sam Chapman-Allen
3
Declarations of Interest
Full declarations of interest can be found at https://newanglia.co.uk/our-board/
None
4
Minutes from last meeting
The minutes were reviewed and agreed.
5
Annual Review of Governance Documents
Melanie Richardson (MR) reviewed the changes to the following documents:
• Terms of Reference – amendment of MR’s job title
• Scheme of Delegation – addition of new funds
(Getting Building Fund and Business Resilience
and Recovery Scheme)
• Accountable Body Agreement – addition of new funds (Getting Building Fund and Business
Resilience and Recovery Scheme) and streamlined wording on sub-programmes
NB asked what amendments have been made to the bank and payment processing policies and
queried whether they should be brought to the A&R Committee for approval.
2
RW confirmed that a bank mandate was in place and that the Treasury Policy adopted that used by
Suffolk County Council.
NB noted that the LEP did not have an autonomous Treasury Policy but it should be highlighted that
we had to use that of our Accountable Body.
ACTION: RW to amend Scheme of Delegation and note that Treasury Policy is that of Suffolk CC. A
one page document confirming these processes will be produced.
6
Review of Audit plan – presented by Price Bailey - Confidential
Alice Boesen (AB) from Price Bailey presented the meeting with the proposed approach to the audit
and highlighted the key areas of risk.
7
Corporate Risk - Risk Register – Confidential
MR presented the risk register and reviewed the key changes.
8
Local Assurance Framework Monitoring
MR updated the meeting on the findings of the latest review of the Local Assurance Framework and
noted that no significant issues had been identified.
9
Next Meeting
It was agreed that the next meeting would take place on 29
th
June.
10
Any Other Business
None
1
Audit and Risk Committee
Wednesday 9
th
February 2022
Agenda Item 6
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.
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. Note that the Scheme of Delegation reflects a number
of programmes which are coming to an end – the Growing Business Fund and the Business
Resilience and Recovery Scheme. There will be a requirement to update the Scheme of
Delegation when we have more information on the future of LEPs. Reference to the new
Economic Strategy included.
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.
27
2
Recommendation
The Audit and Risk Committee recommends the Board approves the:
- Terms of Reference
- Scheme of Delegation
- Accountable Body Agreement
28
1
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.
29
2
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:11 February 2021
30
1
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 2021, confirmed at the LEP Board on 31
st
March 2021.
31
2
Scheme of Delegation
Issue Delegated To
Strategy
Vision, mission and values Board
Development and approval of the Economic Strategy Board
Implementation of the Economic Strategy Board (on recommendations
from relevant sub-boards)
Changes to the overall operating structure of the LEP Board
Approval of the LEP’s 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
above £500k
Board (on recommendations
from IAC)
Awarding of capital or revenue funding to programmes
£500k or below
IAC
Awards from Growing Business Fund up to £500k GBF panel (overseen by the
IAC)
Awards from Business Resilience and Recovery Scheme
up to £50k
Two of CEO/COO/Head of
Programmes
In programme funding changes above £100,000 Board
In programme funding changes up to £100,000 IAC
In programme funding changes up to £25,000
Change requests from programmes/projects with no
financial implications but major changes to outputs or
timeline
CEO – reported retrospectively
to board quarterly
CEO – reported retrospectively
to board quarterly
Change requests from programmes/projects with no
financial implications but minor changes to outputs or
timeline
CEO – reported retrospectively
to the Board quarterly
Governance
Responsibility for compliance with Government Chair and CEO
National Assurance Framework Board
32
3
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 and
audit letter of representation
Board on recommendation
from Audit and Risk
Committee
Bank account mandate, treasury management and bank
investment arrangements
In conjunction with Suffolk
County Council (via our
Accountable Body Agreement)
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
and below
COO in conjunction with CEO
and Leadership team
33
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.
Appendix 2
34
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).
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.
35
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 2022 unless it is
terminated in accordance with the other provisions of clause 3. The ABA can
be extended beyond 31 March 2022 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
36
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 Department for
Levelling Up, Housing and Communities , 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
37
(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:
I. 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.
V. 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-
38
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
Finance and Governance Manager and the Finance Manager) 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.
39
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.
40
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 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:
I. 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
41
transfer all such documents to an appropriate storage location as
required by the relevant funding body
V. 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 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.
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
42
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.
43
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 2021, confirmed at the LEP Board on 31st March 2021.
44
1
New Anglia Local Enterprise Partnership
Audit and Risk Committee
Wednesday 9
th
February 2022
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 2021 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 2021 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 2021 Local Assurance Framework can be viewed under
‘About the LEP Board’here
New Anglia LEP’s 2021 Local Assurance Framework was approved by the LEP Board in March
2021. This is due for update in March 2022.
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2
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.
Overall, we are compliant with the mandatory requirements of the Assurance Framework
checklist. You will note that all amber RAG ratings are in respect of website link issues. We
continue efforts to ensure that all website links are working correctly.
No compliance issues or actions have been raised as part of our Annual Performance Review.
Due to the impact of Covid-19 Ministers agreed certain exemptions and extensions to the
conditions of the National Local Growth Assurance Framework. The LEP is making use of two
exemptions relating to board membership due to one board member stepping down. The LEP is
delaying recruitment of a replacement until the completion of the LEP review. The following
exemptions are in use:
Board member recruitment
Private sector board composition
No further changes to the LEP Board are anticipated in the coming months.
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 2021 Local Assurance Framework.
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AnnexA
QuarterlyReviewoftheLocalAssuranceFramework(LAF)
LAFrequirementnotmet
Minorupdatesrequired
LAFrequirementmet
LocalAssuranceFramework
requirement
AnnexE
Checklist
ref
Sept21
review
Dec21
review
Complianceissue
AlignmentwiththeAccountingOfficerSystem
Statement
1‐5 ForSeptreviewPublicBoarddecisionlogupdatedto5May
2021,uptodateatDecreview.
CorporatestructureforLEPs 14
LocalAssuranceFramework&website 15‐23
Websites 24
LocalEngagement 25‐26
AppointmentProcessforBoardMembersandChairs 27‐28
DiversityStatements 29 TheGovernance&Decision‐makingpagedidnotlinktothe
latestEquality&DiversityPolicy.NowupdatedtoApril21.
BoardrenumerationandLEPOfficersalaries 30
CodeofConduct 31 TheGovernance&Decision‐makingpagedidnotlinktothe
latestStandardsofConductPolicy.
ConflictsofInterest 32 Registerofinterestsrequireasixmonthlyupdate.Despite
beingchasedasmallnumberofdeclarationswere
outstanding.
ABoardMember’sregisterofinterestsincorrectlyclicked
throughtoaLEPofficer’sform.Nowupdated.
ComplaintsforThirdPartiesandthePublic 35‐37 TheGovernance&Decision‐makingpagedidnotlinktothe
latestComplaintsPolicy.NowupdatedtoApril21.
WhistleblowingPolicy 38 TheGovernance&Decision‐makingpagedidnotlinktothe
latestWhistleblowingPolicy.NowupdatedtoApril21.
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AnnexA
Publicationofmeetingandagendaitems 39 Publicminutesaddedfor29JuneAudit&RiskCommittee
meeting,23JulySkillsAdvisoryPanel,15JuneTransportBoard,
21SeptAgri‐FoodIndustryCouncil,27MayAllEnergyIndustry
Council,1DecDigitalTechCouncil.
Handlingconfidentialandexemptinformation 40
ManagementofContracts 41
GovernmentBranding 42
Accountabilityanddecisionmaking 43‐54
TheLEPBoard 55‐57
ChairandDeputyChair 58‐60
LEPStaffandIndependentSecretariat 61
LEPNetwork:cooperation,collaborationand
partnershipwithotherLEPs
62‐63
TheAccountableBodyandSection151Officer 64‐65
Section151OfficerRole 66
DecisionsrelatingtoLEPsawardingpublicfunds 67‐80
ScrutinyandAuditarrangements 81
Websiterequirements TheGovernance&Decision‐makingpagedidnotlinktoallof
thelatestLEPPolicies.Allotherwebsitepageslinkedcorrectly.
Nowupdated.
Guidancearoundhospitalityandexpensesregisterclarified–
expensesregisterforofficersandBoardmembersaddedto
website.
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