The Executive Office Annual Report and Accounts For the year ended 31 March 2017 Laid before the Northern Ireland Assembly by the Department of Finance under section 10(4) of the Government Resources and Accounts Act (Northern Ireland) 2001 03 July 2017 © Crown Copyright 2017 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence v.3. To view this licence visit www.nationalarchives.gov.uk/doc/open-government-licence/version/3/ or email: [email protected]. Where we have identified any third party copyright information, you will need to obtain permission from the copyright holders concerned. This publication is also available at https://www.executiveoffice-ni.gov.uk/financial-information Any enquiries regarding this document should be sent to us at [email protected] Annual Report and Accounts for the period ended 31 March 2017 Page The Performance Report: Overview 1 Statement from the Department’s Accounting Officer 1 A statement of the purpose and activities of the Department 2 Key issues and risks 3 Performance Summary 4 Performance Analysis 17 Financial Performance 17 Non-Financial Performance 23 The Accountability Report: Corporate Governance Report 26 Director’s Report 26 Statement of Accounting Officers’ Responsibilities 28 Governance Statement 29 Remuneration and Staff Report 47 Remuneration Report 47 Staff Report 56 Assembly Accountability and Audit Report 62 Statement of Assembly Supply 62 Other Assembly Accountability Disclosures 69 Audit Report 72 The Financial Statements: Financial Statements 75 Notes to the Accounts 79 The Executive Office 2016-17 ANNUAL REPORT THE PERFORMANCE REPORT OVERVIEW The purpose of the overview is to provide a description of the Executive Office, its purpose, its functions, the key risks to the achievement of its objectives and how the Department has performed during the year. STATEMENT FROM THE DEPARTMENT’S ACCOUNTING OFFICER I am pleased to present the inaugural Annual Report and Accounts for The Executive Office (TEO). TEO, previously the Office of the First Minister and Deputy First Minister (OFMDFM), was created on 9 May 2016 as part of the implementation of actions emanating from the Fresh Start Agreement. The 2016-17 financial year, has witnessed a degree of administrative change and political and economic uncertainty which has not been seen since the advent of devolution in 1999. Major organisational restructuring, addressing new risks such as the macro-economic and political challenges generated by the outcome of the Referendum on the United Kingdom’s membership of the European Union and the implications of dissolution of the NI Assembly on 26 January 2017 have had a significant impact on how TEO operates. Despite the difficult operating environment, TEO has remained fully committed to continued delivery of government services. Over the last year, we have worked to change lives for the better by helping people to improve their futures through delivering social change and building united communities to create a stronger, more cohesive society. We have also delivered a range of outcomes across a number of key departmental functions such as: Good Relations, Race Relations, Victims and Survivors, Social Investment Fund, Urban Villages and many more which are detailed in the Annual Report. Successful delivery of these outcomes reflects the continued hard work of our staff and their passion for and commitment to delivering high standards of public service. This year we have also forged ahead with plans to transform government, laying the foundations for a Northern Ireland Civil Service (NICS) that is fit for the future, representative of a now diverse modern society and more effective and efficient. We have made significant progress this year, but there is still more to do and the draft Programme for Government framework, adopted by the Executive in May 2016, sets out the Executive’s ambition for the future. I remain immensely proud of the work this department does. Its people, policies and processes all play a crucial part in delivering quality services that make a real difference to people across Northern Ireland and I am confident that we are well placed to address the challenges that lie ahead to improve the lives of the people who live here. 1 The Executive Office STATEMENT OF THE PURPOSE AND ACTIVITIES OF THE DEPARTMENT The overall aim of TEO is to build a peaceful and prosperous society with respect for the rule of law where everyone can enjoy a better quality of life now and in years to come. In pursuing the overall aim, the Department’s key interlinked objectives are: • The effective operation of the institutions of government in the delivery of the Executive’s Programme for Government; • Building a united, shared and reconciled community and improving community relations by delivering a strategic approach to good relations through the delivery of the Together: Building a United Community programme; • Tackling disadvantage and promoting equality of opportunity by driving a programme across Government to reduce poverty, promoting and protecting the interests of victims and survivors and other socially excluded groups and addressing inequality and disadvantage; and • Driving investment and sustainable development through regeneration of strategic former military sites; promoting effective long-term capital planning and delivery; and promoting the Executive’s policy interests internationally. Programme for Government The Fresh Start Agreement endorsed an outcome-focused basis for developing the Programme for Government. This approach recognises the essential nature of developing a joined-up approach to tackling the needs of citizens, across central government and to local government and beyond, including the private, voluntary and community sectors. TEO led the preparation of a draft Programme for Government framework, which was adopted by the Executive at its first meeting following the appointment of Ministers in May 2016. The draft Framework was widely endorsed in a public consultation exercise between May and July 2016, and responses to a further consultation on a revised draft Programme for Government conducted in the period October-December 2016 were overwhelmingly positive. Work has continued to support the development of a draft Programme for Executive and Assembly endorsement following the 2 March 2017 elections. The Programme for Government team in TEO worked closely with the NICS Board and the Department of Finance (especially NISRA) to enhance the capacity of the wider Civil Service to develop and deliver the Programme for Government and its associated monitoring arrangements. TEO’s responsibilities under the Programme for Government also include the preparation of delivery plans aimed at increasing levels of respect, reconciliation and shared space as well as enhancing our international reputation as a partner region and visitor destination. The Department will continue to refine its draft delivery plans during 2017-18, in light of agreed Executive priorities and in line with the Programme for Government process. Programme for Government Reporting Work to establish reporting arrangements for an outcome-focused Programme for Government has been progressing throughout 2016-17 and will be implemented when agreed by an incoming Executive. 2 The Executive Office KEY ISSUES AND RISKS A key challenge in 2016-17 has been to maintain service delivery during a period of significant change to a new 9 Department structure. The Department continues to focus on key its policy areas: • Delivering Social Change: creating opportunities and tackling disadvantage to ensure that disadvantaged areas and vulnerable groups continue to be targeted to address persistent patterns of poverty and disadvantage through the implementation of the Social Investment Fund (SIF) and the Delivering Social Change (DSC) Programmes. • Together: Building a United Community (T:BUC): The strategy outlines a vision of “a united community, based on equality of opportunity, the desirability of good relations and reconciliation - one which is strengthened by its diversity, where cultural expression is celebrated and embraced and where everyone can live, learn, work and socialise together, free from prejudice, hate and intolerance.” A key element of the strategy delivered directly by TEO is the investment in the Urban Villages (UV) initiative which aims to foster positive community identities, build community capacity and improve the physical environment in five areas with a history of community tension and deprivation. Another key element is the T:BUC Camps Programme which provides opportunities for young people, aged 11 -19 to come together to build positive relationships across divided parts of our community. • Our new Racial Equality Strategy which was launched December 2015 establishes an up-to­ date framework for government departments (and others) for tackling racial inequalities, to eradicate racism and hate crime and, along with T:BUC, to promote good race relations and social cohesion. Among other things it commits Government to ethnic monitoring and to reviewing our racial equality legislation. It also reaffirms our commitment to the Minority Ethnic Development Fund to develop capacity within the minority ethnic sector and to a Crisis Fund for those who face destitution. • The Historical Institutional Abuse Inquiry: to examine if there were systemic failings by the state or institutions