Worcestershire Local Transport Board Assurance Framework February 2013 Find out more online: www.worcestershire.gov.uk/transport www.wlep.org.uk Worcestershire Local Transport Body Assurance Framework 1. Introduction 1 1.1 Background 1 2. Purpose, Structure and Operating Principles 2 2.1 Name 2 2.2 Geography 2 2.3 Membership 2 2.4 Status and Role of Accountable Body 3 2.5 Conflicts of Interest 4 2.6 Gifts and Hospitality 4 2.7 Audit and Scrutiny 5 2.8 Strategic Objectives and Purpose 5 2.9 Support and Administration Arrangements 5 2.10 Working Arrangements and Meeting Frequency 6 2.11 Transparency and Local Engagement 6 2.12 Complaints and Whistle Blowing 6 3. Prioritisation of Schemes 7 3.1 Introduction 7 3.2 Prioritisation Process 7 3.3 Scheme Eligibility 8 4. Programme Management and Investment Decisions 10 4.1 Scheme Assessment and Approval 10 4.2 Programme Entry 10 4.3 Conditional Approval 10 4.4 Full Approval 10 4.5 The Transport Business Case 11 4.6 Strategic Case 11 4.7 Economic Case 11 4.8 Financial Case 11 4.9 Commercial Case 11 4.10 Management Case 12 4.11 Value for Money 12 4.12 External Views on Business Cases 12 4.13 Release of Funding, Cost Control and Approval Conditions 13 Appendix A -Articles of Constitution, Financial Regulations, Guide to Worcestershire County Council Constitution, Members' Code of Conduct, Procedural Standing Orders Appendix B - LTP3 Policy List, The Worcestershire SAF Summary, Worcestershire County Council Scheme Appraisal Framework: User Guide 1. Introduction 1.1 Background 1.1.1 The Department for Transport has announced its intention to devolve funding for local major transport schemes to Local Transport Bodies (LTBs) from 2015. These Local Transport Bodies are to be voluntary partnerships between Local Transport Authorities (LTA), Local Enterprise Partnerships (LEP) and relevant organisations. 1.1.2 The primary role of the LTB is to decide which transport investments should be prioritised for development and delivery. This will involve the approval of business cases, and ensuring that effective delivery to programme is achieved. 1.1.3 The Department for Transport requires each LTB to develop an assurance framework, which sets out governance and working arrangements for LTBs. This document sets out the proposed assurance framework for such a body in Worcestershire. Page | 1 2. Purpose, Structure and Operating Principles 2.1 Name 2.1.1 It is proposed that Worcestershire's Local Transport Body will be formally known as the Worcestershire Local Transport Body (WLTB). 2.1.2 A Transport Advisory Group (TAG) will be established to act as a working group developing prioritisation advice to the WLTB. 2.2 Geography 2.2.1 The WLTB's influence will be confined to the administrative boundaries of the Worcestershire Local Enterprise Partnership and Worcestershire County Council (WCC). 2.3 Membership 2.3.1 The voting membership of the WLTB will be limited to 9 persons, with a quorum of 4 voting members required for any decision to be made. The Table 2.1 identifies the proposed composition of the WLTB. Voting will be on the basis of the majority of voting members present, with the Chairman of the WLTB having a second or casting vote should there be an equality of votes. The Chairman of the WLTB will be a representative of the County Council and nominated by the Leader of WCC. Substitute representatives are encouraged where necessary. Table 2.1 – Proposed Composition of the WLTB Number of Voting Member or Representing Body Delegates Observer Worcestershire County Council Elected 4 Voting Members Worcestershire Local Enterprise Partnership 2 Voting Birmingham and Solihull Local Enterprise 1 Voting Partnership Worcestershire District Councils elected 2 Voting Members – 1 Rep North 1 Rep South National Transport Agency - Highways 1 Observer Agency / Network Rail Worcestershire Transport Operators 1 Observer Page | 2 2.3.2 The TAG will advise the WLTB on technical issues. It will act as a forum to discuss and bring together inputs from stakeholders in advice to the WLTB. The composition of the TAG will be determined by the WLTB, but will be chaired by a representative from Worcestershire County Council as the LTA and is expected to comprise representatives from the County Council, District and Borough Councils, transport operators, Network Rail, the Highways Agency and, as appropriate, Centro. 2.4 Status and Role of Accountable Body 2.4.1 The WLTB will operate as a voluntary partnership. The Accountable Body for the WLTB will be Worcestershire County Council as the Local Transport and Highway Authority. The WLTB is not a committee of the Council nor a statutory decision-making body and so will not be able to take formal binding decisions. Ultimately decisions relating to the exercise of statutory discretion or statutory functions (e.g. implementation of schemes that require statutory orders, access to the highway etc.) reside with Worcestershire Council County. Those decisions may be taken at either member or officer level, depending on the nature of the decision and the delegation provisions in the Council's constitution. However, in fulfilling its statutory functions Worcestershire County Council will have regard to any recommendations of the WLTB. 2.4.2 The WLTB will utilise the existing robust democratic and administrative processes of the Accountable Body when fulfilling its obligations. This will include observing the relevant sections of Worcestershire County Council's Constitution as they relate to good governance. 2.4.3 Details of Worcestershire County Council's constitution can be found at: www.worcestershire.gov.uk/cms/democratic-services/constitution.aspx Copies of the following documents are provided in Appendix A: Guide to the Constitution Articles of the Constitution Procedural Standing Orders (including declaration of members' interests) Members' Code of Conduct Financial Regulations 2.4.4 The Accountable Body will hold the devolved major scheme funding and make payments to delivery bodies such as Local Authorities. It will account separately for these funds, and provide financial statements to the LTB as required. The local agreements that underpin the LTB will ensure that the funds can be used only in accordance with an LTB decision. 2.4.5 The Accountable Body will in particular ensure; That decisions and activities of the WLTB conform with legal requirements with regard to equalities, environmental, EU issues etc; required by the guidance Through the Section 151 Officer that funds are used appropriately That the WLTB framework as approved by DfT is adhered to Page | 3 That official records of WLTB proceedings are kept and all WLTB documents are stored; There is ongoing monitoring for compliance with the terms of this Assurance Framework and periodically reviewing the framework to ensure that it is kept up to date There is engagement with Government to ensure resource is maximised and funding streams co-ordinated There is full participation in the development of strategic cross-boundary transport schemes All WLTB decisions and actions are undertaken in accordance with the standards appropriate to public authorities. 2.4.6 The operation of the LTB will be underpinned by funding agreements and associated performance measures with scheme promoters, and appropriate legal agreements where delivery is undertaken by third party delivery partners. The delivery partner will need to have their own assurance framework in place to be able to receive funds and deliver projects on behalf of the LTB. 2.5 Conflicts of Interest 2.5.1 The WLTB will adopt the same approach as the Accountable Body (Worcestershire County Council) for dealing with conflicts of interest. This would require any voting members of the Committee to declare any conflicts of interest in advance of any decisions being made. All members would be required to abide by the Worcestershire County Council's Constitution and in particular that all members of the WLTB observe the Council's Members' Code of Conduct and Member/Officer relations protocol as if they were all members of the County Council. 2.5.2 It is absolutely essential that decisions on the prioritisation of investment for major scheme funding are made on an objective basis, using independently verified business cases to provide evidence on the proposed investment's Contribution to LTB member objectives. 2.5.3 There must be a clear distinction between the scheme promoter and the LTB. The scheme promoter can be any organisation which makes the case for major scheme investment through the agreed prioritisation process and associated business case. The LTB will be the decision making body to which the scheme promoter will apply for funding. The LTB will make decisions on which schemes to prioritise based on a proportionate assessment of their business case. The LTB will be assisted in its decision making process by independent experts in the "TAG" 2.6 Gifts and Hospitality 2.6.1 The WLTB will observe the relevant sections of the Accountable Body's Constitution, particularly the Members Code of Conduct (see Appendix A). Page | 4 2.7 Audit and Scrutiny 2.7.1 The WLTB will be subject to an annual audit undertaken by an independent auditor. The results of this audit will be compiled in a report, and this will be submitted to Worcestershire County Council, the Worcestershire Local Enterprise Partnership, Birmingham and Solihull Local Enterprise Partnership, and the Department for Transport concurrently for consideration. 2.8 Strategic Objectives and Purpose 2.8.1 The WLTB's purpose will be: . To guide devolved major transport scheme funding decisions in relation to strategic transport. 2.8.2 The WLTB will have the following strategic objectives: . To develop a prioritised list of investments in Worcestershire's strategic transport infrastructure and services . To monitor the progress of scheme delivery and adherence to programme .