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HOUSE of LORDS Annual Report and Resource Accounts 2017-18 Annual Report and Resource Accounts 2017-18 For the year ended 31 March 2018 Published by the Authority of the House of Lords HL Paper 175 Ordered to be printed 17 July 2018 HOUSE of LORDS Annual Report and Resource Accounts 2017-18 Contents Foreword Foreword by the Clerk of the Parliaments 3 Performance report Strategic aim and objectives 2016-21 4 Organisational structure 6 Implementation of business plan by strategic objective 9 Accountability Report Management commentary 15 Statement of Accounting Officer’s Responsibilities 20 Governance Statement 21 Audit Committee Annual report 31 Climate change, sustainability and the environment 35 Diversity and corporate responsibility report 39 Remuneration and Staff Report Remuneration report 41 Remuneration policy 41 Pay multiples 41 Management Board salary and pensions 42 Staff report 46 Staff costs 46 Staff composition 47 Compensation schemes – exit packages 47 Consultancy costs 49 Sickness absence 49 Staff policies 49 Parliamentary Accountability and Audit Statement of Parliamentary Supply 50 Notes to the Statement of Parliamentary Supply 51 Parliamentary Accountability Disclosures 52 The Certificate and Report of the Comptroller and Auditor General 53 Financial Statements Statement of Comprehensive Net Expenditure 56 Statement of Financial Position 57 Statement of Cash Flows 58 Statement of Changes in Taxpayers’ Equity 59 Notes to the Accounts 60 Appendices Appendix A: Composition of the House of Lords 2017-18 83 Appendix B: Activity data 2017-18 84 2 HOUSE of LORDS Annual Report and Resource Accounts 2017-18 Foreword by the Clerk of the Parliaments This is the second House of Lords Annual Report to be combined with our Resource Accounts. It draws together into a single, comprehensive document an account of our activity in 2017-18. This year the House continued to play a key part in supporting scrutiny of the Brexit process. The progress of the EU (Withdrawal) Act 2018 involved several long sittings and five of the ten largest divisions on record. That scrutiny was informed by a wide range of Brexit-related work by select committees and the Library, some of it directly focused on the Bill, some on wider issues. Providing an effective service and support to the House and members during this time required adaptability and flexibility from staff across the Administration. The Administration is also focused on improving the services we provide – to members, the public and each other. The establishment of a new Procedural Centre will enhance the front-line advice we provide. The rollout of Office 365 and Skype for Business will enable staff and members to work differently and flexibly. Projects to improve the Lords estate, in particular the continued work on the Millbank House site, have made some progress and are expected to complete later in 2018. This year also saw the decision by both Houses on the way forward for the restoration and renewal of the Palace of Westminster. The full decant of both Houses whilst work to replace ageing services and infrastructure is carried out represents the lowest risk, quickest, least expensive, and most effective option. Work to implement this decision and establish the necessary governance structures has begun. As an Administration, one of our priorities is to become a more diverse and inclusive workplace. In March, we published our first gender pay gap report which highlighted some of the challenges we still face. We continue to make excellent progress in implementing our Diversity and Inclusion Action Plan, developed in 2016-17, and in November 2017, the House of Lords was named as one of the 50 most inclusive employers. We are determined to embed and consolidate that progress over the forthcoming year. Ed Ollard Clerk of the Parliaments 3 HOUSE of LORDS Annual Report and Resource Accounts 2017-18 Performance report Strategic aim and objectives 2016–21 The Administration’s aim is “to support and strengthen the House and its members in carrying out their parliamentary functions.” The Administration has three objectives to this end: 1. to provide effective services to facilitate the work of the House; 2. to promote public understanding of the House of Lords and engagement with its work; and 3. to make Parliament safer, more secure and sustainable. This strategy was agreed by the House of Lords Commission in January 2017. This is the first annual report that assesses the Administration’s performance against the new strategy. Our strategy on a page is set out below Our governance structure is set out in detail in the governance statement (see pages 21-30) and summarised in the diagram overleaf: 4 HOUSE of LORDS Annual Report and Resource Accounts 2017-18 5 HOUSE of LORDS Annual Report and Resource Accounts 2017-18 Organisational structure The key functions of the House of Lords Administration are set out below. Clerk of the Parliaments’ Office: corporate services The Clerk of the Parliaments’ Office supports the Clerk of the Parliaments in carrying out his functions and responsibilities as Accounting Officer and Chairman of the Management Board. The Office also supports the Lord Speaker and the Senior Deputy Speaker in the discharge of their functions, as well as the Clerk Assistant and Reading Clerk, with responsibility for Parliamentary Services and Corporate Services respectively. It provides secretariat and administrative support to the Commission, Audit Committee, Finance and Services Committees, the Management Board, the Digital Strategy Board, and the Business Planning Group. The Office is also responsible for strategy and business planning, communications, information compliance, internal audit, external relations, and certain other corporate functions. The Communications team reports to the Reading Clerk and aims to increase public understanding of the role, work and membership of the House; promote the impact and outcomes of the work of the House; and highlight the relevance of the work of the House to UK citizens. It does this through managing the House’s relationship with the media, producing and disseminating information about the House and its work, overseeing the work of the bicameral education, outreach and engagement teams, and visitor services, and providing an enquiry service that responds directly to requests from the public. Following a reorganisation in April 2017 the Communications team also now manages internal communications with staff and members. 6 HOUSE of LORDS Annual Report and Resource Accounts 2017-18 Parliamentary Services Parliamentary Services is a grouping of six offices which closely support the work of the House and its committees: Black Rod’s Department is responsible for controlling access to and order in the House and the Chamber; business resilience and continuity arrangements; planning, management and coordination of events including the State Opening of Parliament; managing media and filming activities; and the administration of the Royal parts of the Palace of Westminster. The Committee Office provides the select committees of the House with research, procedural and legal advice, and administrative support, including the preparation and publication of committee reports. The Journal Office comprises: the Registry, which maintains records of the membership and business of the House and compiles the Journals of the House; the Table Office, which advises members on the tabling of parliamentary business and produces the House of Lords Business publications, including the Minutes of Proceedings; the Printed Paper Office, which is responsible for providing documents required by members to discharge their parliamentary functions; and the printing and publishing units, which prepare and publish official material in-house. The Office is also responsible for the Registrar of Lords Interests and supports the House of Lords Commissioner for Standards. The Legislation Office supports the consideration and passage of primary public and private legislation, as well as secondary legislation, through the House and through the relevant select committees. The Library provides impartial, authoritative, and timely research and information services to support the work of the House. The Official Report (Hansard) provides overnight a complete, authoritative and timely report of proceedings in the Chamber and Grand Committee, as well as Written Answers and Written Ministerial Statements. Transcripts of select committee evidence sessions are also produced. Department of Facilities The Department includes two offices: Property and Office Services (POS) and Catering and Retail Services (CRS). POS provide a varied range of support to members and staff through the provision and management of accommodation, housekeeping, and other associated office services; stakeholder representation in major projects and developments affecting the House of Lords; the management of conference rooms via a team of Attendants; staffing of outbuilding reception areas and the Peers’ Lobby office; providing a centralised point of contact for members and staff relating to office moves, maintenance, furniture and fittings; and facilitating ceremonial events. CRS is responsible for the provision of catering and retail services to members, their guests and staff. In total, CRS operates eight outlets offering a diverse range of facilities that include self- service cafeterias, casual dining and fine dining restaurants, bars, a sandwich bar and a retail gift shop. CRS is also responsible managing an extensive banqueting and events business providing
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