FM 02

1. This FM replaces PPARC FM 64 dated 18 November 1993 which is hereby cancelled.

2. The purpose of this FM is to explain the basis of PPARC's relationship with OST, and the manner in which it operates. It provides guidance on those areas where OST approval is mandatory and those where referral should be considered.

3. The PPARC is a Non-Departmental Public Body (NDPB), established by Royal Charter on 1 April 1994 by virtue of an Order in Council under the Science and Technology Act 1965 and is responsible to the Secretary of State for Trade and Industry whose responsibilities are set out in the Act. The Secretary of State provides funds by grant-in-aid, proposed by the OST and approved by Parliament, to enable PPARC to pursue its Chartered Objects (see Annex A) and to respond to the Government policy, as set out in the White Paper "Realising our Potential" (Cm 2250) together with any subsequent development of policy.

5. The MS&FM contains details of the responsibilities of the Secretary of State, the Permanent Secretary of the DTI, the Director General of Research Councils (DGRC), PPARC Council, Chairman and the Chief Executive. These responsibilities are reproduced at Annex B. In summary:

(a) the Secretary of State is accountable to Parliament for the activities of PPARC and determines the broad policy framework within which PPARC operates;

(b) the Permanent Secretary of the DTI is the Accounting Officer for the Department with responsibilities as set out in Chapter 6 of Government Accounting, including being responsible and accountable to Parliament for issue of the grant-in-aid to PPARC; ensuring conformity to the conditions attached to the use of the grant-in-aid; monitoring compliance with those conditions; and ensuring relevant Parliamentary authority is both sought and given. The Permanent Secretary must also have due regard to financial and other management controls to ensure safeguarding public funds; be satisfied that such controls applied by PPARC conform with the requirements of both propriety and good financial management; and ensure that there is an adequate statement (reviewed regularly) of the financial relationship between the DTI and PPARC;

(c) the DGRC, with the help of the staff of the OST, is responsible for supporting the Secretary of State in securing the successful, high quality operations of PPARC in pursuit of PPARC’s chartered objects and for advising both the Secretary of State and the DTI Accounting Officer in pursuance of their responsibilities in respect of PPARC and the implementation of those responsibilities. In order to discharge the full responsibilities as set out in Annex B, the DGRC is permitted to take whatever steps he considers necessary, working with the Chairman, Chief Executive and other PPARC staff;

(d) Council consists of a part-time non-executive Chairman, a full-time Chief Executive (who is also Deputy Chairman) and between 10 and 18 other members from academia, industry and Government appointed by the Secretary of State. The Chairman and Council members have individual and collective responsibility to the Secretary of State (who is represented at Council meetings by an official from the OST) and to Parliament for the activities of Council. Members are governed by a Code of Practice for Council Members, agreed between the OST and PPARC, and are responsible for the establishment of an Audit Committee and for operating a Code of Openness which incorporates the accepted recommendations of the First Report of the Committee on Standards in Public Life (Nolan) and the Code of Practice on Access to Government Information;

(e) the Chairman acts as custodian of PPARC’s mission and chartered objects and is responsible for the overall direction and management of PPARC and for chairing Council meetings. The Chairman is a member of the Remuneration Committee which advises the DTI Accounting Officer and the Appointments Committee which recommends to the Secretary of State a shortlist of Members of Council;

(f) the Chief Executive is appointed by the Secretary of State and is designated by the DTI Accounting Officer as the Accounting Officer of the PPARC. The Chief Executive is expected to contribute to the scientific leadership of PPARC and to develop effective dialogue and communication with both its provider and user communities about the policies of the Council. The Chief Executive is also the Deputy Chairman of PPARC and is responsible to Council for the overall direction and management of PPARC staff and other resources. As Accounting Officer for PPARC the Chief Executive is responsible for the effective, safe and efficient operation of PPARC including day to day leadership and management of PPARC staff and for oversight of the PPARC Establishments (see Annex B for full details). The Chief Executive is responsible for providing any required information needed to enable the DTI Accounting Officer to carry out the DTI’s responsibilities and is liable to be summoned before the Public Accounts Committee and other Parliamentary Committees alongside the DTI Accounting Officer to hearings on matters relating to the PPARC in order to account for the uses to which public funds have been put and PPARC’s stewardship of those funds.

6. The Chief Executive delegates the day to day administration of the responsibilities described above to PPARC employees via the annual "Delegation of Authority" letters given to directors but is not permitted to assign absolutely to any other person any of the responsibilities set out in the MS&FM.

7. A key feature of the MS&FM continues to be that the relationship of each Research Council with the OST is system-based and that the onus of judgement and decision making rests with the Research Councils with the Research Councils having due regard to the policy objectives of the OST. The OST satisfies itself that the systems are working to achieve maximum value for money by scrutiny of regular returns, by arranging reviews and by dipstick testing.

9. In order for the OST to support the Secretary of State, the DTI Accounting Officer and the DGRC, PPARC may be required to provide additional information for the purpose of:

10. PPARC is expected to submit its systems to regular review and audit by the Research Councils’ Internal Audit Service (RCIAS). Copies of the Audit Needs Assessments, Audit Plans, the Annual Report by the Head of the RCIAS and annual summary follow-up report are provided to the OST. The Secretary of State may require surveys or reviews to be undertaken by the OST to examine existing management arrangements or particular aspects of the work of PPARC. These may take the form of full reviews or "Dipstick Tests". DTI internal auditors may also require access to PPARC systems to assist in their reviews of controls so as to provide necessary assurance to the DTI Accounting Officer.

11. The MS&FM sets out the authorities delegated to PPARC and to its Chief Executive as Accounting Officer. The circumstances in which cases may need to be referred outside the presentation of the Strategic and Operating Plans and Supply Estimates are described below and the delegated financial authorities can be found in FM101 – Delegation of Financial Authority.

(c) matters which require Ministerial reference to Parliament, eg proposals implying amendments to the Science and Technology Act 1965;

(d) capital investment projects requiring expenditure from Science Budget funds of £15M or more (joint reference with any other Research Councils involved is required);

(e) other expenditure proposals which exceed the limits of delegated authority (see FM 101);

(g) carry forward of monies in excess of 2% of grant-in-aid income or, where grant has not been paid by OST, grant-in-aid provision over 3% of grant-in-aid approved by Parliament;

(h) proposed indemnities and other contingent liabilities other than in the normal course of business, and insurance undertakings;

(i) issues of propriety and other matters involving significant deviations from the guidance in Government Accounting;

(l) variations or modifications to pay, grading or conditions of service judged to be at variance with approved arrangements.

13. Any proposal which falls into one of the above categories must be referred at an early stage as follows:

Category (a), (b) or (f) as appropriate to the Director Administration or the Head of Finance Division;

Category (c), (j) or (l) to the Director Administration;

Category (d), (e), (g), (h), (i) or (k) to the Head of Finance Division.

15. There will be cases where, for the smooth and effective working of the partnership between the OST and PPARC, a decision needs to be made whether to make a reference to the OST and whether that reference is for information or, notwithstanding delegated authority, a request for agreement to a proposed action. In this, PPARC is required to show proper regard to the importance of the OST having ample forewarning of sensitive issues and to the following indications of interest:

(a) contentious or politically sensitive matters and matters for Ministerial resolution;

(c) major departures from agreed policy or significant interactions or variances with other Departmental policies (eg education, foreign policy);

(d) matters meriting, or requiring OST involvement in their public presentation;

(e) major points of interpretation of central advice or guidance (eg investment appraisal);

(f) unusual levels of expenditure (in excess of 3% of gross annual expenditure) entailing significant commitment beyond the PES period, with a substantial element of financial risk or giving rise to wider expenses beyond immediate costs;

(g) assessment of risks or threats to systems which are crucial to the operations of PPARC;

(h) matters which involve significant expenditure abroad or in foreign currency;

(j) matters where action is being taken against PPARC in the Civil or Criminal Courts.

(a) for capital expenditure an investment appraisal and consideration of PFI, or an equivalent comparison of options, should be carried out and recorded in every possible case (see FM 302);

(c) there are special guidelines about the retention of proceeds from the disposal of capital assets. Finance Division should be consulted in all cases.

(d) all cases of fraud or attempted fraud, theft or attempted theft, whether proven or suspected must be notified to Head of Finance Division for entry in a register PPARC is required to hold (see FM 202).

17. Any proposal giving rise to any possibility of Government interest should be referred at an early stage to the Head of Finance Division or the Director Administration as appropriate. Any question of interpretation should similarly be referred as above.

18. Any queries concerning the content or interpretation of this FM should be referred to Jill Drinkwater, Propriety and Regularity Section, Finance Division, Swindon Office tel: 01793 442124 e-mail: jill.drinkwater@pparc.ac.uk.

(a) to promote and support, by any means, high-quality basic research and related post-graduate training in astronomy, planetary science and particle physics;

(b) to advance knowledge and technology, and provide trained scientists and engineers, which have potential to contribute to the economic competitiveness of our United Kingdom and the quality of life, through meeting the needs of users and beneficiaries (including the communications, electronic and other industries);

(c) to provide advice on, and disseminate knowledge and promote public understanding of astronomy, planetary science and particle physics."

Extract from PPARC’s Management Statement and Financial Memorandum issued by OST in June 1999)

11. The Secretary of State’s responsibilities are set out in the Science and Technology Act 1965. The Secretary of State is accountable to Parliament for the activities of the Council and determines the broad policy framework within which the Council operates and the amount of Parliamentary grant-in-aid. The Secretary of State will:

• answer questions raised by Members of Parliament and respond to debates about the Council and its activities;

• appoint the Chairman, Chief Executive and members of the Council and set out the terms and conditions of those appointments;

• provide guidance of a general or specific nature to the Council from time to time and will monitor its performance in relation to agreed objectives to be satisfied that its activities are consistent with government policy and aims;

• lay a copy of the Council’s Annual Report before each House of Parliament, together with such comments as he may think fit to make.

12. The Permanent Secretary of the DTI is the Accounting Officer for the Department. The responsibilities of the Accounting Officer are set out in Government Accounting and include being responsible, and accountable to Parliament, for:

• ensuring that the conditions attached to the use of grant-in-aid by the PPARC conform to the ambit and the amount of the Vote;

• that the financial and other management controls applied by the Department are appropriate and sufficient to safeguard public funds;

• that the financial and management controls being applied by the Council conform with the requirements both of propriety and of good financial management;

• that there is an adequate statement of the financial relationship between the Department and the Council and that this statement is regularly reviewed.

14. The DGRC is responsible for supporting the Secretary of State in securing the successful and high-quality operations of the Council in pursuit of its chartered objects and for advising the Secretary of State and the DTI Accounting Officer in pursuance of their responsibilities in respect of the Council and their implementation. The functions of the DGRC, supported by the staff of the OST, include:

• helping the Council set its policies within the wider framework of Government support for SET as set out in the Forward Look and in the light of the findings from the Technology Foresight Programme;

• advising the Secretary of State on the Council’s activities, on the resources needed by the Council and on the distribution of the Science Budget;

• advising the Secretary of State and the DTI Accounting Officer on matters concerning economy, effectiveness, efficiency and propriety in the use of the Science Budget;

• monitoring the Council’s financial position and receiving and acting on information provided by the Council under this Management Statement and Financial memorandum;

• advising the Secretary of State on appropriate performance targets and indicators, and monitoring and reviewing performance against targets;

• agreeing with the Council’s Chairman and Chief Executive the latter’s objectives each year and chairing the remuneration committee, which considers the performance bonus of the Chief Executive;

• ensuring effective working at the boundaries with other Councils and keeping the boundaries between Councils under review;

• ensuring the Research Councils work together to achieve a common approach and take advantage of the possibilities for improved efficiency wherever possible and appropriate;

• encouraging the Council to keep under review the arrangements for managing or sponsoring, monitoring and funding any institutes for which it is responsible; and

15. The DGRC may take whatever steps he considers necessary, working with the Chairman, Chief Executive and other Council staff, to discharge these responsibilities.

16. In accordance with the Charter, the Council consists of a part-time non-Executive Chairman, a full-time Chief Executive and Deputy Chairman and not fewer than ten nor more than eighteen other members, at least half of whom shall be appointed by reason of their qualifications in science or engineering. Appointments to the Council are made by the Secretary of State, following consultation with the Chairman of Council and, in respect of members appointed by reason of their qualifications, with the Presidents of the relevant learned societies set out in the Council’s Charter. Appointments procedures accord with guidance issued by the Commissioner for Public Appointments. The Council includes members from academia, industry and Government. The Secretary of State is represented at Council meetings by an official from the OST. The Chairman and Council members have individual and collective responsibility to the Secretary of State and to Parliament for the activities of the Council. All Council members, whatever their background or affiliation, are expected to conduct themselves on Council as full members contributing corporately to the Council's overall objectives, even though they may be drawn from particular disciplines, sectors, institutions or organisations.

17. The activities of the members of Council are governed by a Code of Practice for Council Members agreed between the OST and the Council.

18. The Council is responsible for establishing an Audit Committee as a sub-committee of Council, operating under terms of reference set by the Council and agreed with the OST and chaired by a member of Council who is not an employee of the Council. The Audit Committee should pay particular attention to risks and contingency plans on all business critical projects and report to Council where plans or progress are such as to prejudice Council’s operations. The Council’s internal auditors shall comply with the objectives, standards and practices outlined in the Government Internal Audit Manual.

19. The Council is responsible for operating a Code of Openness, derived from that for Central Government, incorporating the accepted recommendations of the First Report of the Committee on Standards in Public Life and the Code of Practice on Access to Government Information.

20. The Chairman is appointed in a part-time and non-executive capacity by the Secretary of State. Appointment procedures accord with guidance issued by the Commissioner for Public Appointments. The Chairman acts as custodian of the Council’s mission and Chartered objects and is responsible for overall direction and management of the Council and for chairing Council meetings in a way which:

• gives due and fair weight to the rights and obligations of all the stakeholders in Council business.

The Chairman is a member of the Remuneration Committee, which considers the performance bonus of the Chief Executive and advises the DTI Accounting Officer. The Chairman is also a member of the Appointments Committee which recommends to the Secretary of State a shortlist of Members of Council.

21. The Chairman will be expected to secure the interest of the Council’s user communities and draw on the relevant experience from those industrial and commercial sectors most closely related to the Council’s Chartered Objects. The Chairman will share with the Chief Executive responsibility for representing the Council.

22. Under the Council’s Charter, the Chief Executive is appointed by the Secretary of State, who also determines the initial remuneration of the post. The Chief Executive will be expected to contribute to the scientific leadership of the Council and to developing effective dialogue and communication with both its provider and user communities about the policies of the Council. The Chief Executive is Deputy Chairman of the Council and is responsible to the Council for the overall direction and management of Council staff and other resources. The Chief Executive of each Council is also designated by the DTI Accounting Officer as the Accounting Officer of the Council, responsible for the effective, safe and efficient operation of the Council, according to the objects in its Charter and the decisions of Council.

• day to day leadership and management of the Council’s staff and, subject to arrangements endorsed by Council, for the oversight of any research units, institutes or establishments sponsored by the Council;

• advising the Council on the discharge of its responsibilities under this document and other guidance that may be issued from time to time, including any recommendations, accepted by Government, of the Public Accounts Committee (hereafter "the PAC"), other Parliamentary Select Committees or other Parliamentary Authorities;

• ensuring that all public funds made available to the Council are used for the purpose for which they are intended by Parliament and that they and the Council’s other resources - including its capital assets, equipment and staff - are used economically, efficiently and effectively;

• ensuring that financial considerations are taken fully into account, applying financial appraisal techniques where appropriate, in reaching decisions and in their execution;

• ensuring that appropriate personnel management policies are developed and observed and that adequate internal management and financial controls are introduced and maintained, including protection against fraud and theft;

• establishing a comprehensive system of internal delegated authorities which should be available in writing to all staff and ensure that compliance with them is reviewed regularly;

• ensuring that proper project management systems are in place and regularly reviewed to reflect best practice;

• ensuring that the development and installation of all business critical systems are subject to proper project management disciplines and that sound contingency plans are in place;

• signing the Council’s accounts, ensuring that they are properly prepared and presented in accordance with any directions from the Secretary of State, and keeping proper records relating to the accounts.

• the Treasury Memorandum, "The Responsibilities of an NDPB Accounting Officer"; [Editor’s note: a copy can be found in Government Accounting Chapter 8 Annex 8.2]

• Treasury guidance contained in the handbook, "Regularity and Propriety" (July 1997); [Editor’s note: a copy can be obtained from the Regularity and Propriety Section of Finance Division, Swindon Office]

• paragraphs 14-18 of the NDPB Accounting Officer Memorandum, if the Accounting Officer considers Council or the Chairman is pursuing or contemplating a course of action involving a transaction which would infringe the requirements of propriety or regularity or does not represent prudent or economical administration, efficiency or effectiveness;

• other guidance issued by the DTI and the Treasury and the appropriate training.

The Chief Executive is responsible for providing such information as may be required to enable the DTI Accounting Officer to carry out his responsibilities.

25. The Accounting Officer of the Council shall be liable to be summoned before the PAC and other Parliamentary Committees alongside the DTI Accounting Officer to hearings on matters relating to the Council in order to account for the uses to which public funds have been put and the Council’s stewardship of those funds. The Accounting Officer shall comply with any applicable recommendations made by the Public Accounts Committee or other Parliamentary authorities as accepted by HM Government and with such administrative and financial practices applicable to expenditure of public funds as the Secretary of State requires.

26. The Chief Executive may delegate the day to day administration of these responsibilities to Council employees but shall not assign absolutely to any other person any of the responsibilities set out in this document."

Extract from PPARC’s Management Statement and Financial memorandum issued by OST in June 1999.

46. The OST shall send to the Council as soon as possible in advance of each financial year a formal statement of the amount of grant-in-aid determined by the Secretary of State, together with a statement of any change in policy this reflects. The amount notified will be subject to Parliamentary approval and will be controlled within the Department of Trade and Industry’s DEL.

47. Grant-in-aid will be paid by the Secretary of State in monthly instalments on evidence of need. Written applications for grant shall be submitted in the form and at the time prescribed by the Secretary of State.

48. Requests for grant shall include a signed certificate by an authorised officer of the Council in the following terms:

"I certify that the conditions attaching to the use of grant-in-aid have been duly observed in the expenditure of money received to date. I further certify that the grant-in-aid of [ ] is now required for purposes appropriate to the Council’s statutory functions."

A list of authorised officers with examples of specimen signatures should be provided to the OST. Amendments to the list should be notified to the OST immediately.

49. The Council may not vire more than 5% of its capital grant-in-aid to recurrent grant-in-aid without reference to the Secretary of State. There is no limit on the virement of current provision to capital.

50. During the course of the year, cash balances accumulated from grant-in-aid should be kept at the minimum level consistent with the efficient operation of the Council. If a cash surplus should occur, it must remain in the Council’s Paymasters account or be placed on deposit until it can be used. Any interest earned on these deposits shall be returned to the Exchequer as Consolidated Fund Extra Receipts (CFERs). The Council should seek to avoid holding a working balance in excess of the equivalent of 2% of its total annual grant-in-aid when it receives each month’s instalment of grant-in-aid. Any monthly grant claim which would result in such an occurrence will be subject to reduction unless the Council can, with the claim, demonstrate a legitimate requirement for a higher working balance.

51. The Council shall surrender any recurrent grant-in-aid monies in excess of 2% of grant-in-aid income held at the end of the financial year unless a case for additional retention is agreed by the Secretary of State and the Treasury. Any grant-in-aid that cannot be carried forward should be repaid to the OST for surrender to the Consolidated Fund.

52. In addition, subject to the grant not having been paid by OST, the Council may carry forward recurrent grant-in-aid provision up to 3% of grant-in-aid approved by Parliament. A case for additional carry forward may be agreed by the Secretary of State. Where the Secretary of State does not agree, any grant that cannot be carried forward should be repaid to the OST for surrender to the Consolidated Fund.

53. Any unspent capital grant-in-aid provision that has not been paid by OST can be carried forward to a future year under the End Year Flexibility Scheme.

54. Subject to the requirements of paragraph 37 of Annex 32.4 of Government Accounting, receipts from the sale of capital assets may be retained to finance capital expenditure, non-recurrent restructuring payments or PFI current spending in-year.

55. The Council shall be free to retain receipts additional to those allowed for in the grant-in-aid without loss of grant-in-aid, subject to any exceptions and conditions which may be made by the Secretary of State and the Treasury.

56. The Council must collect receipts and shall pay all matured and properly authorised invoices in accordance with the terms of contracts within 30 days, as provided for in paragraph 21.2.6 of Government Accounting. The Council should pay its bills promptly in line with the principles underlying Government Accounting 21.2.8.

57. The Council must notify the OST immediately in writing if it becomes apparent at any time that an overspend of the estimates of its expenditure over the year, as voted by Parliament, is likely to occur. Similarly, PPARC must notify the OST if it is likely to underspend by more than the approved end of year balances.

58. All capital investment projects should only be undertaken after appropriate investment appraisal and due consideration of the possibility of funding under the Private Finance Initiative (hereafter "PFI"). PPARC should consider PFI options in the following circumstances:

* when the acquisition of a new capital asset or the replacement of an existing one is being actively considered or foreseen.

Expenditure must be accommodated within planned public expenditure provision and the specific totals set out in Estimates for the relevant year.

59. Procurement of works, equipment, goods and services, should be based on value for money, ie quality (in terms of fitness for purpose) and delivery against price. Where appropriate, a full options appraisal should be carried out before decisions are taken. Procurement procedures should observe the requirements of Government Accounting and guidance in the Central Unit on Purchasing (CUP) Guidance Notes. Due consideration should be given to the possibility of funding under PFI.

60. Contracts shall be placed on a competitive basis and the most economically advantageous tender accepted, unless there are good reasons to the contrary. The Council shall take all reasonable steps to appraise the financial standing of any firm or other body with which it intends to enter into a contract. Payments should not normally be made in advance to contractors, before equivalent value has been received in return. Any proposals to make advance payments should be considered against the advice provided in Annex 21.1 to Chapter 21 of Government Accounting.

61. The Council shall keep a record of all losses and special payments, whether within delegated powers or not, and all losses sustained or special payments made shall be suitably recorded in the statements of accounts for each financial year.

62. The Council shall safeguard itself against fraud and theft. All novel or unusual cases of fraud or attempted fraud or cases of theft or attempted theft, whether proven or suspected must be notified to the OST and a register of all such cases should be maintained.

63. Fees and charges for services provided by the Council, other than to other Research Councils under service level agreements, shall be in accordance with the Treasury’s Fees and Charges Guide.

64. A record of gifts (with a value of £10 or more) and material hospitality (other than diplomatic activity or events hosted by HMG) both given and received, should be kept. Individuals are expected to decline gifts unless to do so would cause serious embarrassment and to consider carefully whether it is appropriate to accept an invitation. All gifts with a value in excess of £25 (£75 for gifts from foreign governments or international organisations) should be surrendered. Any gifts to staff will be subject to the requirements of DAO(GEN)1/94.

* give any guarantees, indemnities, letters of comfort or incur any other contingent liability (whether or not in legally binding form) otherwise than in the terms of guarantees indemnities etc, which can be regarded as of a type given in the course of normal commercial business dealings.

66. The organisation of staff and the management structures should be appropriate to the Council’s operational requirements, reflect overall budgetary constraints and seek to maximise economy, efficiency and effectiveness. The Council shall operate the appropriate financial and line management information systems necessary to enable it to make informed decisions on the effective and efficient use of resources and exploit, where appropriate, opportunities offered by new technology and new working and management practices.

67. The Council is responsible for its own pay and grading arrangements and shall adhere to the grading standards set out in the restructuring business case of 1 April 1996, as amended by subsequent negotiating remits. Any changes to the pay and grading framework must be agreed by OST, who will clear them with the Treasury as appropriate.

68. Posts below Grade 5 may be created, regraded or removed without reference to the OST. The creation of additional posts at Grade 5 and above, beyond those agreed in the 1996-97 Senior Management Review, requires the prior approval of the OST.

69. The Council’s pay arrangements shall provide for the pay of staff to be related to individual performance towards achieving the Council’s mission and objectives.

70. The Council shall submit for clearance, in advance of formal negotiations of pay settlements, its pay negotiating remit setting out its proposed annual pay settlement and any changes in conditions of service with a paybill impact, in advance of formal negotiations of a pay settlement. The Council and OST will agree the timetable for consideration of the negotiating remit.

71. The Council will be an associated employer for the purposes of the Research Councils Pension Scheme. Proposed changes in pension arrangements for the Council’s staff, or compensation arrangements in respect of redundancy or other forms of compulsory premature retirement provided by the Council, shall be subject to the approval of OST and the consent of the Treasury.

72. The Council is required to operate a Code of Conduct for Council staff and is responsible for reviewing its existing code, in consultation with OST, to reflect changes in the Civil Service Code and to satisfy the requirements of the First Report of the Committee on Standards in Public Life.

73. The Council may not undertake any insurance, in respect of persons, activities, equipment, land or buildings funded directly or indirectly by the Exchequer, except in order to comply with any statutory obligations other than the Employers' Liability (Compulsory Insurance) Act 1969 for which an exemption certificate has been issued, or where the undertaking of insurance is consistent with the guidance set out in Government Accounting. Any other circumstances require the prior approval of the OST.

74. The DTI Accounting Officer is responsible for ensuring that the Council's banking arrangements safeguard public funds. The Chief Executive of the Council is responsible for ensuring that the Council’s banking arrangements are in accordance with the requirements of Government Accounting and are carried out economically, efficiently and effectively. The Council should ensure, therefore, that these arrangements are suitably structured, represent value for money and are reviewed at least every two years, with a comprehensive review of the arrangements, usually leading to competitive tender, at least every three to five years.

75. Any dealings in foreign currency should observe the requirements set out in Chapter 28 of Government Accounting and Section 8 of the Departmental Banking Manual.

* refer to common good advice provided on all property matters (eg Amendment No 8 to Government Accounting (Chapter 32); Chapter 17 of the DTI Procurement Manual); and

* check with the Property Advisors to the Civil Estate (PACE) whether property is available on the Civil Estate before acquiring any space elsewhere."