Annual Report and Accounts 2019–20 The HOUSE of COMMONS: Administration Annual Report and Accounts 2019–20 (for the year ended 31 March 2020) Presented to the House of Commons pursuant to Section 1(3) of the House of Commons (Administration) Act 1978 and Section 3 (as amended) of the House of Commons (Administration) Act 1978 Ordered by The House of Commons to be printed 21 July 2020 Published by Authority of the House of Commons HC 580 © Parliamentary Copyright House of Commons 2020 This publication may be reproduced under the terms of the Open Parliament Licence, which is published at www.parliament.uk/site-information/copyright/ Contents Performance Report 10 Overview 10 Joint foreword by the Clerk of the House and the Director General 10 Who we are 12 Our strategy 13 Our corporate culture 15 What we do 17 Finance summary 2019-20 18 Performance summary 2019-20 19 Performance Analysis 23 Facilitating effective scrutiny and debate 23 Involving and inspiring the public 24 Securing Parliament’s future 27 Creating a diverse and inclusive working environment 29 How we measure performance 31 Other corporate reporting 31 Accountability Report 40 Corporate Governance 40 Statement of Accounting Officer’s Responsibilities 40 Governance Statement 41 Remuneration and Staff Report 64 a) Remuneration policy 64 b) Staff Report 70 Parliamentary Accountability and Audit Report 75 a) Statement of Parliamentary Supply 75 b) Statement of Parliamentary Supply Commentary 78 Parliamentary Accountability Disclosures 85 a) Losses and special payments 85 b) Fees and Charges 85 c) Remote Contingent Liabilities 86 Certificate and Report of the Comptroller and Auditor General to the House of Commons 87 Opinion on financial statements 87 Opinion on regularity 87 Basis of opinions 88 Emphasis of matter – material uncertainty regarding property valuation 88 Conclusions relating to going concern 88 Responsibilities of the Accounting Officer for the financial statements 88 Auditor’s responsibilities for the audit of the financial statements 89 Other Information 90 Opinion on other matters 90 Matters on which I report by exception 90 Report 91 Financial Statements 94 Statement of Comprehensive Net Expenditure 94 Statement of Financial Position 95 Statement of Cash Flows 96 Statement of Changes in Taxpayers’ Equity 97 Notes to the Accounts 98 1. Accounting conventions 98 2. Statement of Net Expenditure by Operating Segment 108 3. Expenditure 112 4. Grants paid 113 5. Income 113 6. Property, plant and equipment 114 7. Heritage assets 118 8. Intangible assets 121 9. Capital and other commitments 122 10. Inventories 124 11. Cash and cash equivalents 124 12. Trade receivables, financial and other assets 125 13. Trade payables and other current liabilities 125 14. Provisions for liabilities and charges 126 15. Contingent liabilities 127 16. Related-party transactions 127 17. Events after the reporting period date 129 Annual Report of the Administration Estimate Audit and Risk Assurance Committee 132 Introduction 132 Conclusion for the financial year 2019-20 132 Appendix 136 Membership 138 Meetings 138 Internal Audit 139 Internal audits considered by the Committee 139 Risk Management 140 Internal audit charter 140 Planning of the audit programme 140 External Auditors 141 House of Lords Audit Committee 141 Members Estimate Audit Committee 141 Further information about the Committee 141 Performance Report | Annual Report and Accounts 2019-20 8 1. Performance Report Overview 10 Joint foreword by the Clerk of the House and the Director General 10 Who we are 12 Our strategy 13 Our corporate culture 15 What we do 17 Finance summary 2019-20 18 Performance summary 2019-20 19 Performance Analysis 23 Facilitating effective scrutiny and debate 23 Involving and inspiring the public 24 Securing Parliament’s future 27 Creating a diverse and inclusive working environment 29 How we measure performance 31 Other corporate reporting 31 Performance Report | Annual Report and Accounts 2019-20 9 Performance Report Overview Joint foreword by the Clerk of the of weeks which was an incredible achievement House and the Director General and deserving of the widespread praise it has received. Subsequent modifications to these The last year has had its challenges. Indeed, arrangements endorsed by the House have all as this Annual Report and Account goes to been speedily implemented. Making Parliament print, we find ourselves still tackling the very a COVID-19 secure workplace has also been a terrible impact that the COVID-19 pandemic has priority and we have worked closely every step had on the UK and throughout the world, and of the way with Public Health England to put in this will no doubt continue to be a prominent place measures that help to mitigate the risks of consideration in the year ahead. COVID-19. This will be an ongoing process for as long as the pandemic lasts, as the safety of all In response to the COVID-19 pandemic the those who work in Parliament is a key priority. House of Commons met virtually for the first time in its history, an unprecedented event This year there were also two prorogations and testament to the dedication and hard followed by a general election in December work of House staff. From early April 2020 2019. This election was the first election to be MPs were able to contribute and participate in held in December since 1923. Preparations for proceedings in the Chamber via video screens, the new Parliament were undertaken by many they were able to vote remotely through colleagues and we welcomed new and returning an electronic system and they were able to Members at the State Opening just before conduct Select Committee meetings and Christmas. This Parliament is being chaired by a evidence session through video conferencing new Speaker, Sir Lindsay Hoyle, who was elected technology. All of this was put together by our into the role on 4 November 2019. The current colleagues in the House Service in just a matter session of Parliament is due to run until 2021. Performance Report | Annual Report and Accounts 2019-20 10 Following the report on Bullying and Harassment a Parliamentary Relationship Agreement which of House of Commons Staff by Dame Laura serves to set out the working relationship Cox that was published in October 2018, we between Parliament and the Sponsor Body. have continued to drive changes to the culture Other building and renovation works still and values that underpin our work. This year remain under the management of Parliament the Commons Executive Board agreed to four and these works have continued on the Estate, new values for the House Service: courageous, including the essential fire safety works and inclusive, trusted and collaborative. These were the renovation of Elizabeth Tower. championed within the organisation in our Everyone has a Voice campaign that seeks to As this report reflects there are still areas include and capture the views of all those who where we know more work can be done. The work in the House of Commons. Ensuring those Parliamentary Digital Service, whilst having been values are a lived reality is an ongoing challenge instrumental in much of the response to COVID-19 for everyone including the senior management has been reviewed this year and has set clear team. We are very pleased that all three of Dame targets to transform the way it operates over Laura Cox’s recommendations have now been the next two years. Information management, implemented. In December 2019 the Independent and the application of GDPR, has been improved Complaints and Grievance Scheme became an substantially at a central management level but independent bicameral team and in February needs further improvement at team level. And 2020 the House of Commons Commission agreed as has been evidenced in the publishing this year to establish a new Member Services team as of our Ethnicity Pay Gap, more work needs to be part of the House’s response to the report on the done to support and promote BAME colleagues bullying and harassment of MPs’ parliamentary into senior roles, a target the Commons Executive staff that was undertaken by Gemma White Board is committed to achieving. As part QC. We are pleased with the progress that has of our focus on Diversity and Inclusion, a been made to change the culture in the House of separate steering group, chaired by the Clerk Commons however we are not complacent about of the House, has been established to drive and the work that still remains to be done and it will implement the diversity and inclusion strategy. continue to be a priority for us going forward. In June 2020 an advisory group was established to specifically focus on issues relating to race in The Restoration and Renewal (R&R) programme the House service. This was as a direct response is the name given to the programme of works from senior management to the challenges that was set up to help restore and protect the highlighted by the BlackLivesMatter campaign. Palace and its historic legacy for the future. The R&R programme is the UK’s biggest heritage Finally, we would like to thank all our colleagues renovation project and to carry out this work in the House Service for their commitment and Parliament agreed that an expert body, called diligence to our work in the House of Commons, the Sponsor Body, should be established even when faced with the most extreme of independent of Parliament to undertake the challenges. work. On the 8 April 2020 the Restoration and Renewal Sponsor Body was legally established Dr John Benger and the R&R programme was officially handed Clerk of the House, House of Commons over to them. To prepare for this handover the Accounting Officers of the House of Commons, Ian Ailles House of Lords and the Sponsor Body signed Director General, House of Commons Performance Report | Annual Report and Accounts 2019-20 11 Who we are The House of Commons Service provides procedural support and advice to Members The House of Commons is the democratically along with a wide range of essential services elected House of the UK Parliament.