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Public Appointments and Public Bodies DCMSSecondRevise 11/4/07 14:00 Page 1 Public appointments and public bodies April 2007 DCMSSecondRevise 11/4/07 14:00 Page 2 Our aim is to improve the quality of life for all through cultural and sporting activities, support the pursuit of excellence, and champion the tourism, creative and leisure industries. DCMSSecondRevise 11/4/07 14:00 Page 3 Public appointments and public bodies 3 Contents Foreword by Jonathan Stephens, Permanent Secretary DCMS 4 PUBLIC BODIES 6 What is a public body? 6 Public service values 7 Roles and responsibilities 8 DCMS’s aim, objectives and targets 10 Conclusion 12 DCMS FAMILY 13 Sponsored bodies map 14 DCMS public bodies 16 PUBLIC APPOINTMENTS 27 How are appointments made? 27 How many appointments are made? 27 What is involved? 27 Are appointees paid? 27 Qualities required 28 Equal opportunities 28 Commissioner for Public Appointments 29 Further information 30 DCMSSecondRevise 11/4/07 14:00 Page 4 4 Foreword Thank you for your interest in serving as a Board member on one of the public bodies sponsored by the Department for Culture, Media and Sport. These are valuable, interesting and responsible roles – I am sure that if appointed you will find it a rewarding experience. This guide will help you navigate your way around the appointments system and understand how DCMS works with its public bodies. It summarises the respective roles of the Department and public bodies; the responsibilities of public bodies and their Boards; and the Department’s aim and objectives. The Secretary of State is committed to maximising the public value delivered by DCMS and the bodies it funds. One element of this is ensuring that our public bodies feel part of the communities they serve, are increasingly responsive to the citizen in general, and engage more proactively with a wider range of citizens, particularly those who are under-represented among participants in our sectors. Bodies will need to develop plans for engaging with citizens and ensuring that their views are fully reflected in decisions about programmes and services. The Secretary of State and I look forward to considering with our sponsored bodies what more we can do to tap into a rich spectrum of perspectives on the challenges and opportunities in each of our sectors. DCMSSecondRevise 11/4/07 14:00 Page 5 Public appointments and public bodies 5 DCMS seeks to appoint Board members who combine with their focus on public value the ability to provide the strong governance that ensures strategic leadership, and supervise and challenge the executive. I also strongly encourage our Board members to contribute to the work the Department has launched on the back of our 2007 Capability Review to improve how we work with our public bodies, and to ensure that our approach is efficient, integrated and strategic. I hope you find this booklet useful and I look forward to welcoming you to the DCMS family. Jonathan Stephens Permanent Secretary Department for Culture, Media and Sport DCMSSecondRevise 11/4/07 14:00 Page 6 6 Public bodies WHAT IS A PUBLIC BODY? A public body is an organisation which has a role in the processes of national government but is not a part of any government department. It is, however, largely funded by a sponsor department (or by a share of proceeds from the National Lottery) and its Board is normally appointed by the Secretary of State of the sponsor department. A public body operates at arm’s length from government and carries out work on its behalf, particularly in areas where the expertise and understanding of people outside government is needed or desirable. The main categories of body are as follows: • Executive non-departmental public bodies (NDPBs) which carry out operational and regulatory functions, for example: Sport England, English Heritage and National Lottery Commission • Advisory NDPBs which advise the Government on specific issues, such as the Advisory Committee on Historic Wreck Sites and the Reviewing Committee on the Export of Works of Art. • Public Corporations, which are usually self-financing and are more autonomous than NDPBs, for example the BBC and S4C. The relationship between department and public body is a balance between independence and accountability. On the one hand, public bodies perform functions best carried out at a certain distance from the centre of government. For example, some are regulators, and must be seen to be independent of political interests. Others need specialised expertise not found in general public administration. On the other hand, public bodies spend public money, from the Exchequer or the National Lottery good causes, and are therefore accountable to citizens, Ministers and Parliament. That framework is encapsulated in the following key documents, which apply to most bodies: DCMSSecondRevise 11/4/07 14:00 Page 7 Public appointments and public bodies 7 • Public Service Agreement (PSA): in a White Paper published every two years, the PSA sets out our aim and objectives, which should encompass the work of all our public bodies, and our key targets; • Funding agreement: supports the PSA by explaining what each body will deliver for the public funding allocated to it, and why; the agreement, signed every two years by the Chair of the body and the Secretary of State, summarises strategy, key activities, and outputs to be delivered; • Management statement and financial memorandum: sets out the rules and guidelines that a public body should observe in carrying out its functions; reviewed roughly every five years, but the content remains fairly constant; • for National Lottery distributing bodies, policy and financial directions, and a statement of financial requirements: setting out rules on the treatment of Lottery proceeds, particularly where this differs from the treatment of Exchequer funds. PUBLIC SERVICE VALUES As providers of public services, public bodies must • provide best value for money – ensuring services are delivered in the most effective, efficient and economical way; • maintain the highest standards in the stewardship of public funds – demonstrating impartiality, integrity and objectivity; • demonstrate openness and responsiveness in the way they operate and in their communications with the public; and • adhere to standards in public life set out in the seven Nolan principles. Of course the private sector has similar values, but in the public sector there is greater external scrutiny and greater expectation that at all times public bodies will observe, and be seen to be observing, these values. For example, even the perception of, or potential for, a conflict of interest can be almost as damaging as an actual conflict of interest. So it is important that Boards should be able to DCMSSecondRevise 11/4/07 14:00 Page 8 8 demonstrate that they are using resources effectively and properly, and that public funds are not being used for private or partisan purposes. Roles and responsibilities Secretary of State/Sponsor Department • setting the policy framework within which the body operates, and the high- level objectives and targets it delivers • determining the amount of grant in aid to be allocated to the body and, where appropriate, its share of the money raised for good causes by the National Lottery • monitoring, and accounting to Parliament for, the body’s performance and stewardship of public money • (for officials) liaising with bodies on behalf of Ministers and advising Ministers on matters to do with sponsored bodies The Board of the Public Body • providing overall leadership and developing strategy, within the policy framework and expenditure limits set by the sponsor department • ensuring that high standards of corporate governance are maintained: that the organisation has effective control systems, decision-making processes and management, so that public resources are safeguarded, in particular from fraud and theft, and used to best effect. A crucial part of this is management and monitoring of risk • being responsible for carrying out the body’s statutory functions; for example, in the case of national museums and galleries, the long-term stewardship of collections and historic buildings • complementing the executive, not only by providing support and advice, but also by taking an independent view and challenging the status quo DCMSSecondRevise 11/4/07 14:00 Page 9 Public appointments and public bodies 9 It is for each Board to decide exactly how it will operate. However observation of effective Boards suggests the following good practice: • the Board operates very much as a single corporate unit, but with all members making a full contribution; the Chair and DCMS seek to ensure the right skill mix to make this possible, and the body provides a structured training/development programme for members • Board meetings focus on important and strategic matters, with other matters for which the Board is responsible delegated to appropriate committees of officers (but the Boards of some DCMS bodies have to deal regularly with detailed case work) • the Board has special in-depth sessions on key issues, such as future strategy, which it is hard to get to grips with in regular meetings • individual members are given specific roles, eg chairing sub-committees, that make full use of their specific expertise The Chief Executive • working with the Chair to develop strategy proposals to present to the Board, and then advising the Board on implementation • acting as the body’s Accounting Officer: being personally responsible for the proper handling and use of the public funds at the body’s disposal; and contributing to the Department’s accounting to Parliament for these matters • overseeing and being responsible for day-to-day management and operations, including risk management and monitoring • advising the Board on the discharge of its responsibilities (as set out in founding legislation, management statement/financial memorandum, funding agreement, etc) DCMSSecondRevise 11/4/07 14:00 Page 10 10 DCMS’s aim, objectives and targets We engage with our public bodies mainly at the strategic level, in terms of what each body can contribute to delivery of the PSA and other strategic priorities.
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