PPS Corporate Governance Framework

Transcription

1 PPS Corporate Governance Framework Version 2.0 (June 2012)

2 Contents Page 1. Introduction 2 2. Corporate Governance: Definition 5 3. Management Board 6 4. Roles and Responsibilities 7 5. Schedule of Matters Reserved to the Board and Scheme of Delegation Internal Control and Risk Management Supporting Arrangements 24 Annexes Annex A: PPS Organisational Structure 29 Annex B: Management Board Terms of Reference 30 Annex C: PPS Corporate Governance Structure 35 Annex D: The Seven Principles of Public Life 36 Annex E: Delegated Authority from DFP 37 Annex F: Business Cases 42 Annex G: Audit and Risk Committee Terms of Reference 45 Annex H: Senior Management Group Terms of Reference 51 Annex I: People and Resources Sub-Committee Terms of Reference 55 Annex J: Performance and Delivery Sub-Committee Terms of Reference 59 Annex K: Policy and Quality Sub-Committee Terms of Reference 63 Annex L: Supporting Policies and Procedures 67 Annex M: Statement of Assurance Template 69 PPS Corporate Governance Framework V 2.0 1

3 1. Introduction Purpose and Scope of this Document 1.1 This document sets out details of the Public Prosecution Service s corporate governance framework. It provides information on the system of direction and control within the Service and confirms the scope of the Service s corporate governance arrangements which have been established to ensure proper and effective management of the Service s affairs. 1.2 This guidance is intended to be a living document which will evolve as the Service s corporate governance arrangements develop. It will therefore be kept under continuing review. It will be formally reviewed at least once a year by the Management Board. Statutory Background 1.3 The Public Prosecution Service (PPS) was established on 13 June 2005 by the Justice (Northern Ireland) Act 2002 ( the 2002 Act"). The Act creates the Public Prosecution Service and defines its statutory duties and commitments and the legislative framework within which it provide its services. 1.4 The PPS is the principal prosecuting authority in Northern Ireland. In addition to taking decisions as to prosecution in cases investigated by the police in Northern Ireland it also considers cases investigated by other statutory authorities, such as HM Revenue and Customs. 1.5 The PPS s vision is to be recognised as providing a first class prosecution service for the people of Northern Ireland. Accountability Arrangements 1.6 As specified at section 29(6) of the 2002 Act the Director is head of the Service and the Public Prosecutors and the other members of staff of the Service are PPS Corporate Governance Framework V 2.0 2

4 subject to his direction and control. The Director is also the Accounting Officer for the PPS. As Accounting Officer, the Director is responsible for ensuring that all public monies are used efficiently and effectively. All members of staff are Northern Ireland Civil Servants. The Service s organisational structure is set out at Annex A. 1.7 There is also a Deputy Director of Public Prosecutions. The Deputy Director has all the powers of the Director but must exercise them subject to his direction and control. Both the Director and Deputy Director posts are public appointments made by the Attorney General for Northern Ireland. 1.8 Section 3(2) of the Northern Ireland Act 2009 established the Director of Public Prosecutions for Northern Ireland as a corporation sole. This was to facilitate the holding of property, rights and liabilities by the Director, reflecting the intention that, following devolution, the Public Prosecution Service for Northern Ireland should be a non-ministerial department, independent of a parent department within the Northern Ireland departmental system. The relevant section is as follows: After section 30 of the Justice (Northern Ireland) Act 2002 (c26) insert - 30A Corporation sole etc. (1) The Director of Public Prosecutions for Northern Ireland is a corporation sole. (2) The Director may do anything, apart from borrowing money, which is calculated to facilitate the exercise of the Director s functions or which is incidental or conducive to the exercise of those functions. (3) An instrument or other document purporting to be signed or otherwise executed by or on behalf of the Director is to be received in evidence and is, unless the contrary is proved, to be taken to be so signed or executed. 1.9 As a non-ministerial department, the Service prepares its own annual report and resource accounts, in accordance with the guidance set out in the Government Financial Reporting Manual and other guidance as directed by the Department of Finance and Personnel. The resource expenditure of the PPS up to was reported within the resource accounts of the Northern Ireland Office, of which the PPS was a part. PPS Corporate Governance Framework V 2.0 3

5 1.10 The PPS is financed directly from the Northern Ireland Consolidated Fund through the supply process operated by the Department of Finance and Personnel. Each year the PPS is given approval for its expenditure when the Assembly votes the Main Supply Estimates In May 2010 John Larkin QC was appointed as the Attorney General for Northern Ireland, as part of the devolved justice arrangements. The 2002 Act provides for the Director and Attorney General to consult with each other from time to time on any matter for which the Attorney General is accountable to the Northern Ireland Assembly. However in accordance with section 42(1) of the 2002 Act the functions of the Director shall be exercised by him independently of any other person At present a number of prosecutorial matters, principally in respect of national security and terrorism, are reserved to Parliament at Westminster. Duties in respect of these matters are performed by the Advocate General for Northern Ireland, currently the Rt. Hon. Dominic Grieve QC MP who is also the Attorney General for England and Wales. This arrangement is provided for by section 27 of the 2002 Act. PPS Corporate Governance Framework V 2.0 4

6 2. Corporate Governance: Definition 2.1 Corporate Governance is the way in which an organisation is directed and controlled. It defines the distribution of rights and responsibilities among the different stakeholders and participants in the organisation, determines the rules and procedures for making decisions on corporate affairs (including the process through which the organisation s objectives are set) and provides the means of attaining those objectives and monitoring performance. Importantly it defines where accountability lies throughout the organisation Good governance is central to the effective operation of government departments. It is recognised that while government departments are not the same as for-profit organisations, they still have a need to be business-like and operate according to recognised good governance principles in business: Leadership articulating a clear vision for the department and giving clarity about how policy activities contribute to achieving this vision, including managing risk. Effectiveness bringing a wide range of relevant experience to bear, including through offering rigorous challenge and scrutinizing performance. Accountability promoting the government s goal of transparency through clear and fair reporting. Sustainability taking a sensible long-term view about what the department is trying to achieve and what it is doing to get there. 2.3 The PPS is committed to high standards in corporate governance. The policy of the PPS is to ensure that effective governance arrangements are maintained which serve to improve the quality of decision making and the ability to deliver on strategic and operational objectives. This document complements the current risk management policy, PPS Corporate Plan, Annual Business Plans and financial management arrangements which together provide the systems to manage the Service s resources. 1 Corporate Governance in Central Government Departments: Code of Good Practice (HM Treasury / Cabinet Office - July 2011). PPS Corporate Governance Framework V 2.0 5

7 3. Management Board 3.1 The PPS Management Board supports the Director in his leadership of the PPS and in reaching decisions on the strategic direction of the PPS, the development of appropriate strategy and in meeting his corporate governance responsibilities. 3.2 The Board comprises the Director, Deputy Director, three Senior Assistant Directors and two independent members. 2 The Board is chaired by the Director, and in his absence, by the Deputy Director. The Board s Terms of Reference, which set out the functions, aims and responsibilities of the Board and its membership, are at Annex B. Board Committees 3.3 The Management Board is supported by a number of Committees as follows: Audit and Risk Committee (ARC) Senior Management Group (SMG) People and Resources Sub-Committee (P & R) Performance and Delivery Sub-Committee (P & D) Policy and Quality Sub-Committee (P & Q) 3.4 The relationship between the groups is illustrated at Annex C. The Schedule of Matters Reserved to the Board and Scheme of Delegation to the Board s committees are set out below (see Section 5). 2 Two of the three SAD posts (Regional Prosecutions / Finance and Resources) are currently filled on a temporary appointment basis, pending a review of senior management. PPS Corporate Governance Framework V 2.0 6

8 4. Roles and Responsibilities 4.1 All board members and members of senior management have a responsibility to act in accordance with the Seven Principles of Public Life (see Annex D) when carrying out their duties. Accounting Officer 4.2 The Department of Finance and Personnel has appointed the Director of Public Prosecutions as Accounting Officer of the PPS. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding PPS assets, are set out in Managing Public Money Northern Ireland, issued by the Department of Finance and Personnel. 4.3 Managing Public Money also stipulates that each public sector organisation must have an accounting officer available for advice or decision as necessary at short notice. When the Director (as Accounting Officer) is absent and cannot readily be contacted, another senior official, normally the Deputy Director, will deputise. If a significant absence is planned, the Accounting Officer will invite the Department of Finance and Personnel to appoint a temporary acting accounting officer. Executive Board Members 4.4 The business of the PPS is managed by the executive board members. In the PPS they are the: Director of Public Prosecutions. Deputy Director of Public Prosecutions. Senior Assistant Director, Regional Prosecutions. Senior Assistant Director, Finance & Resources. 4.5 In their role as executive board members they are responsible for the PPS Corporate Governance Framework V 2.0 7

9 development of strategy and for supporting the delivery of that strategy. This includes taking steps to ensure that business is prioritised and decisions implemented in accordance with the objectives set by the Board. The roles and responsibilities of each executive member are clearly defined and agreed with the Director of Public Prosecutions. In addition, executive members have a responsibility, in tandem with fellow Board members both executive and nonexecutive, for the management and governance of the PPS. Independent Non-Executive Board Members 4.6 The PPS has two non-executive Independent Board Members. Their primary role is to contribute to the good governance of the Service. The role of the Independent Board Members is to: Participate fully in the formulation of business planning, strategy development and audit and risk management. Participate fully in the process of monitoring the Service s progress towards meeting agreed objectives and targets. Challenge the process of policy formulation. Participate in, and challenge, the financial planning of budgets and decisions on budget bids and easements. Chair, and membership of, the Audit and Risk Committee and membership of other committees as agreed by the Director. Represent the Service as required. Principal Establishment and Finance Officer 4.7 From April 2010, on establishment of the PPS as a non-ministerial department the Service appointed a (temporary) Senior Assistant Director PPS Corporate Governance Framework V 2.0 8

10 for Finance and Resources. The Senior Assistant Director is a member of the Management Board and acts as the Principal Establishment and Finance Officer (PEFO) for the Service and in this role is responsible for ensuring that proper controls are in place to safeguard public funds and departmental assets and to provide advice to the Accounting Officer as required. 4.8 The PEFO also acts as the Senior Information Risk Owner (SIRO) for the organisation. PPS Corporate Governance Framework V 2.0 9

11 5. Schedule of Matters Reserved to the Board and Scheme of Delegation Introduction 5.1 This Scheme was made by the Director of Public Prosecutions for Northern Ireland on 1 February It defines the matters which the Director has reserved to the Board and the decisions which the Board and its committees can make. It also sets out the terms of reference of business of the Board and its committees which are detailed in the annexes of this framework document. 5.2 The Management Board shall not exercise any function in relation to individual prosecutorial decisions. 5.3 The Director and Management Board will review the effectiveness of the Scheme each year and make amendments as required. Matters reserved for Board approval Governance 5.4 The following matters are reserved to the Board: (i) Setting the Service s standards and values. (ii) Establishment and dissolution of Board committees. (iii) Review of the Register of Interests for Board members and staff. (iv) Approval of organisation-wide policies. 3 (v) Approval of arrangements for dealing with complaints. (vi) Approval of the equality scheme. (vii) Approval of the freedom of information publication scheme. (viii) Approval of the PPS Risk Management Policy and risk appetite. 3 With the exception of those policies which focus on prosecutorial matters. PPS will also adopt a range of central government and NICS policies which will be brought to the attention of the Board as required. PPS Corporate Governance Framework V

12 (ix) Approval of procedures for the evaluation of the effectiveness of the Board 5.5 The PEFO is responsible for all other governance matters not precluded under this Scheme (or which fall to the Director as Accounting Officer for the PPS, including publication of the annual statement on internal control), specifically: (i) (ii) Recording and reporting on the Board s governance arrangements. Implementation of the complaints scheme, equality scheme, freedom of information publication scheme, staff code of conduct and other policies, with the exception of those policies which focus on prosecutorial matters. Strategy, plans and budgets 5.6 The following matters are reserved to the Board: (i) (ii) (iii) (iv) Definition of the Service s vision, aims and objectives. Ownership of the corporate plan. Approval of annual budget and estimates. Monitoring of performance objectives and budget on a regular basis. 5.7 The PEFO is responsible for all other strategy, planning and budgeting matters not precluded under this Scheme, specifically: (i) (ii) (iii) Preparation of the annual budget and estimates and controlling income and expenditure. Preparation of the draft corporate plan. Advising the board on strategic corporate issues. PPS Corporate Governance Framework V

13 Staffing PPS staff are NICS Civil Servants and therefore the Service will follow relevant policies and procedures as specified by the Department of Finance and Personnel (DFP), including: (i) Recruitment, appointment and grading procedures. (ii) Remuneration policy. 5 (iii) The disciplinary procedure. (iv) The grievance procedure. (v) The redundancy policy. (vi) The staff appraisal policy. (vii) Redundancy procedures. 5.9 The following matters are reserved to the Board: (i) Approval of any substantial organisational restructuring, within the overall headcount and budget agreed by DFP. (ii) Approval of all new posts for which the salary is in excess of 50,000 per annum. (iii) Establishment of a remuneration committee The PEFO is responsible for all other staffing matters not precluded under this Scheme, specifically: (i) (ii) (iii) The recruitment and appointment of all staff in accordance with the agreed appointments procedure. Implementation of the staff appraisal system. The taking of disciplinary action in accordance with the disciplinary procedure. 4 Since devolution in April 2010, PPS staff have undergone a period of assimilation whereby they have had the opportunity to convert to NICS terms and conditions or to remain under the same terms and conditions applicable to the Northern Ireland Office. 5 The salary of the Director and Deputy Director are set in line with the Judicial Appointments Scale as determined by DFP. PPS Corporate Governance Framework V

14 (iv) (v) The operation of the grievance procedure. The implementation of organisational restructuring. Financial arrangements 5.11 Delegated Authority The Department of Finance and Personnel manage the funds for the Northern Ireland Block as voted by the Northern Ireland Assembly and is responsible for the approval of expenditure, except to the extent that this has been delegated to individual departments. Overall delegated limits for authority for expenditure have been set by the Department of Finance and Personnel. The details are set out at Annex E and cover the areas where DFP approval is required for all departments, as well as the arrangements relating specifically to the PPS Approval to Incur Expenditure The Accounting Officer is ultimately responsible for ensuring the: regularity and propriety of PPS expenditure, in line with the Ambit of the Service; and the operation of the PPS within the Cash Allocation and Budgetary Limits voted to the Service within their annual Estimate The development of a Business Case is required in order to support non-routine, or novel expenditure over 10,000 in order that the business rationale and value for money can be considered before implementation is approved All business cases must be forwarded to the PPS Finance team in advance of seeking formal approval. These cases are logged under a central register against which their progress can be monitored. Progress stages include Finance Team approval, Management Approval, DFP approval where required, date of initiation of the Post Project Evaluation and date of completion of the Post Project Evaluation. PPS Corporate Governance Framework V

15 5.15 The Finance team will operate as the internal challenge function to ensure the case has been adequately made and must make an initial recommendation in respect of the financial viability of a case before it can be forwarded for appropriate approval Appropriate approval for a business case is determined by the nature and value of expenditure. The Management Board has assigned a schedule of purchasing authorisation levels, within the overall DFP framework. These are set out at Annex F 5.17 The following matters are reserved to the Board: (i) Approval of all non-routine expenditure over 50,000. (ii) Approval of financial policy, for instance the fraud prevention policy and anti bribery and corruption policy. (iii) Any other matter that is of significant financial or reputational risk to the Board The PEFO is responsible for all other financial matters not precluded under this Scheme, specifically: (i) (ii) (iii) Implementation of financial policies, including the fraud prevention policy. Implementation and management of any steps needed to safeguard the assets of the organisation. Approval of special payments It should be noted that approvals in respect of Counsel Fee payments are set out in the current PPS fees guidance. The PPS does not have delegated authority to pay fees in excess of 100k to any one counsel in any one case. PPS Corporate Governance Framework V

16 Procurement Procurement is the process of identifying the best means of appropriate supply for the goods and services used by the PPS. After the decision to incur the expenditure has been approved the PPS Procurement Officer will consider due process. PPS Procurement and Purchasing Policy sets out the framework for purchasing within the Service. All procurement over 10,000 is conducted by the Procurement Officer in conjunction with the Central Procurement Directorate; below this level the Delegated Purchasing Branches can conduct the exercise. The nature of the exercise is determined by the value of the goods/services to be purchased in line with Central Procurement Directorate guidance The PEFO is responsible for all other purchasing matters not precluded under this Scheme, specifically: (i) Contracts / appointments which have been approved by the Board and authorised by CPD. (ii) Implementation of the procurement policy. Auditing and Reporting 5.22 The following matters are reserved to the board: (i) (ii) (iii) Approval of the annual report and audited financial statements. Appointment of an internal auditor. Approval of the terms of reference of the Audit and Risk Committee The PEFO is responsible for all other auditing and reporting matters not precluded under this Scheme (or which fall to the Director as Accounting Officer for the PPS), specifically: (i) Preparation of the annual report and financial statements. PPS Corporate Governance Framework V

17 (ii) (iii) (iv) Provision of support and advice in the preparation of the statement on internal control. Maintenance of the corporate risk register. Reporting losses and special payments to the Audit and Risk Committee on a quarterly basis and to the Management Board every 2 months. Delegation of Authority 5.24 The terms of reference of the board are set out at Annex C. In addition, the following matters are delegated to the Board s various committees, each of which will report regularly to the board: (i) The Audit and Risk Committee is responsible for those matters outlined in its terms of reference (Annex G). (ii) The Senior Management Group is responsible for those issues outlined in its terms of reference (Annex H). (iii) The People and Resources Sub-Committee is responsible for those issues outlined in its terms of reference (Annex I). (iv) The Performance and Delivery Sub-Committee is responsible for those issues outlined in its terms of reference (Annex J). (v) The Policy and Quality Sub-Committee is responsible for those issues outlined in its terms of reference (Annex K) The PEFO is not restricted from exercising his own delegation to his staff for any of the matters for which he is responsible. PPS Corporate Governance Framework V

18 Urgent Decisions 5.26 If, exceptionally, an urgent issue cannot be dealt with by correspondence, the Director will make a decision and advise the members of the Board accordingly. PPS Corporate Governance Framework V

19 6. Internal Control and Risk Management 6.1 The system of internal control within PPS is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of PPS policies, aims and objectives; to evaluate the likelihood of those risks being realised; the impact should they be realised; and to manage them efficiently, effectively and economically. 6.2 The PPS Corporate Governance Framework consists of a range of supporting policies, procedures and other internal and external documents. These have been listed at Annex L. This list is not exhaustive and will be subject to review and update as necessary (Note: Many of these documents are also referenced elsewhere in this guidance as required). 6.3 Key elements within the system of internal control include the following: Preparation of an annual report and resource accounts. An annual Statement on Internal Control (Governance Statement). The PPS risk management framework. The PPS corporate planning framework. Statements of assurance. Review by internal audit. External assurance. Stakeholder engagement Annual Report and Resource Accounts 6.4 Under the Government Resources and Accounts (Northern Ireland) Act 2001, the Department of Finance and Personnel directs the Public Prosecution Service to prepare for each financial year resource accounts detailing the resources PPS Corporate Governance Framework V

20 6.5 In accordance with section 39(1) of the Justice (Northern Ireland) Act 2002, the Director must also prepare an annual report on how he has exercised his functions during the financial year. The provisions of a code of practice for Public Prosecutors must be set out in the Director s annual report for the financial year in which the code is issued; and any alterations to the code must be set out in his annual report for the financial year in which the alterations are made. 6.6 At the end of each financial year the Annual Report and Resource Accounts are presented by the Accounting Officer to the Comptroller and Auditor General for certification. 6.7 In practice the Annual Report and Resource Accounts are presented and laid as a single document. Arrangements for laying are as follows: The Resource Accounts are laid before the Northern Ireland Assembly by the Department of Finance and Personnel under section 10(4) of the Government Resources and Accounts Act. The Annual Report is laid before the Assembly by the Attorney General for Northern Ireland under section 42(6) of the Justice (Northern Ireland) Act The Annual Report is also presented to Parliament by the Advocate General for Northern Ireland under section 42(6) of the Justice (Northern Ireland) Act In line with Parliamentary Protocol, laying at Westminster must precede laying in the Assembly. Statement on Internal Control 6.9 As part of the Annual Report and Resource Accounts, the Accounting Officer is required to sign a Statement on Internal Control (SIC). The SIC confirms PPS Corporate Governance Framework V

21 whether the system of internal control was in place for the whole of the year under review. Material changes or the absence of the risk management process for the material period is disclosed where appropriate The SIC includes assurance in relation to: The PPS s capacity to handle risk. The risk and control framework. The effectiveness of internal controls, including disclosure of any significant internal control problems. The effectiveness of information security arrangements. Risk Management 6.11 The PPS risk management policy sets out the framework for the management of risk and promotes a consistent approach across the Service. The document also provides an outline of the roles and responsibilities of those involved in the risk management process. The Director, supported by the PPS Management Board, has overall responsibility for ensuring that an effective risk management process is established and maintained and is responsible for agreeing the Service s Risk Management Framework. The corporate risk register is reviewed at each meeting of the Management Board and Senior Management Group. The Senior Management Group undertakes regular and detailed oversight of the key corporate risks and the Service s risk management capability. All risks set out at corporate level are owned by members of the Management Board Regional Prosecutors and Assistant Directors (SCS Grade 5) and Corporate Services Business Heads are responsible for maintaining effective risk management arrangements within their own areas. Region and Section risk registers are reviewed regularly as these underpin the corporate risk register. Managers and staff at all levels have a responsibility to identify, evaluate, manage or report risks. PPS Corporate Governance Framework V

22 6.13 The Audit and Risk Committee reviews the corporate risks and receives regular reports concerning matters of internal control. On an annual basis the Committee examines a report from senior management outlining key reputational risks for the organisation Details of the key corporate risks for the Service are set out in the PPS Corporate and Annual Business Plans which are available via the PPS website (see below). Corporate Planning Framework 6.15 The PPS Corporate Plan sets out the context in which the PPS will operate (usually over a three year period) and the strategic priorities and objectives to be pursued in order to progress the delivery of Service s vision. The Corporate Plan is agreed by the Management Board, in consultation with the Attorney General The Service will also publish an Annual Business Plan, presenting in detail the measures, targets and associated actions for the Service over the next financial year. The Annual Plan is developed using the Balanced Scorecard approach It is important that this process is cascaded within the organisation to ensure that business plans (scorecards) are in place for each of the regions and sections. Individual Assistant Directors and Corporate Services Branch Heads are responsible for the development of the plans for their areas of responsibility. Where appropriate this will involve consultation with staff members. On completion of the draft scorecards it is expected that all members of staff are provided with a copy of the document for their region or section and that key issues and initiatives are discussed as part of face to face team briefings. All region and section plans need to be in place in April each year in order to facilitate the development of performance agreements for the year ahead. Statements of Assurance 6.18 On a quarterly basis, all senior managers, Corporate Services Branch Heads and operational Business Managers within the Service are required to submit a PPS Corporate Governance Framework V

23 Statement of Assurance. The purpose of these statements is to provide assurances to the Director with regard to the effectiveness of risk management, governance arrangements and the management of resources, finances and performance across the organisation. These confirm that systems of internal control are operating satisfactorily in practice and, where appropriate, draw the Director s attention to significant internal control issues. The Statement of Assurance templates currently in use are attached at Annex M. Audit and Risk Committee 6.19 The Committee s terms of reference (see paragraphs and Annex E cover the review of PPS resource accounts, internal and external audit activity, risk management, corporate governance and financial and other internal controls. The Committee agrees the annual work programme for Internal Audit taking account of key corporate risks The Committee produces an annual report which is reviewed by the Management Board. The report is an important component in the Accounting Officer s review of effectiveness, as set out in the PPS statement on internal control. Internal Audit 6.21 Internal Audit provision within the PPS is currently provided by the Internal Audit Branch of the Department of Justice (DOJ). The internal audit service is provided in accordance with the Government Internal Audit Standards The Head of Internal Audit provides the Accounting Officer and the Board with an independent opinion on the adequacy and effectiveness of the Service s system of internal control and on any significant control issues. PPS Corporate Governance Framework V

24 External Assurance 6.23 The PPS is subject to review by Criminal Justice Inspection Northern Ireland, within the provisions of Part 3 of the Justice (Northern Ireland) Act The Chief Inspector undertakes a programme of thematic and inter-agency reviews on an annual basis to promote good practice. The results of all reviews are published The Service s accounts are audited by the Comptroller and Auditor General (C & AG) as head of the Northern Ireland Audit Office. The C & AG and his staff are wholly independent of the PPS and he reports his findings to the Northern Ireland Assembly. NIAO also seeks to promote better value for money by highlighting and demonstrating to audited bodies ways in which they could make improvements to realise financial savings or reduce costs; guard against the risk of fraud, irregularity and impropriety; provide a better quality of service; strengthen and enhance their management, administrative and organisational processes; and achieve their aims and objectives more cost-effectively Assurances are also provided by the Department of Finance and Personnel covering the shared services provided to the PPS. At present this includes HR Connect which provides transactional HR work and a payroll service for the PPS. Stakeholder Engagement 6.26 The PPS has published an external communication strategy and a community outreach strategy in support of its strategic objective to improve public confidence and increase public awareness of the PPS and its role The Service recognises the importance of engaging with staff and has published an internal communication strategy. The Service assesses the effectiveness of these arrangements, for example, through participation in the NICS Staff Attitude Survey and via feedback from employee groups and the trades unions. PPS Corporate Governance Framework V

25 7. Supporting Arrangements 7.1 There are also a number of other processes and mechanisms which support and promote effective corporate governance as outlined in previous sections. Quality Assurance 7.2 The PPS Quality Assurance Team aims to provide an independent assessment of the quality of decision-making, case preparation and presentation within the Service. The team s annual work programme includes a series of thematic reviews. Each report sets out a number of issues for the Service to address, as well as recommendations for service improvement. Policy Framework 7.3 The Service has a Policy Section, headed at Assistant Director level to lead in the development of legal policy and to ensure that appropriate guidance is issued to prosecutors on legal and legislative matters. Arrangements are in place for all significant judgments delivered by the Court of Appeal, Supreme Court and European Court of Human Rights to be passed to Policy Section to ensure that any learning points are identified and disseminated to staff. 7.4 In addition to legal policy development, a range of other policies have been promulgated, including: Human Resources policies designed to ensure the Service complies with the law and has the appropriate numbers of staff with suitable skills to meet its objectives. This encompasses the performance management system for reviewing and assessing the performance of individual members of staff and which is carried out in line with NICS procedures. Policies on financial management, including guidance on financial delegations and the management and payment of Counsel fees. PPS Corporate Governance Framework V

26 The principles of public service, the Civil Service Code of Ethics and PPS Code of Ethics. A departmental fraud policy statement / gifts and hospitality policy. An internal whistleblowing policy and related reporting arrangements, providing all staff with a safe environment to raise concerns about unlawful conduct, possible fraud, dangers to the public or environment or other serious malpractice. Publication of an Equality Scheme and Disability Action Plan, in accordance with Equality Commission requirements. Protocols and Service Level Agreements 7.5 Formal relationships have also been established between the PPS and a range of external / partner organisations, including establishment of a protocol with the Police Service of Northern Ireland. The Service is also seeking to establish service level agreements with the various statutory authorities which submit cases for consideration with a view to prosecution. These include the Driver and Vehicle Agency and the Social Security Agency. Information Security 7.6 Since the establishment of the Service as a non-ministerial department in April 2010, steps have been taken to reinforce PPS information assurance arrangements, to improve information security awareness and disseminate best practice. The Senior Assistant Director for Finance and Resources has been appointed as Senior Information Risk Owner. All senior managers have been designated as Information Risk Owners to provide further assurance that information assets are properly managed. PPS Corporate Governance Framework V

27 7.7 A Business Assurance Manager has been appointed to co-ordinate the development of the information assurance framework and data handling and security arrangements across the Service. 7.8 Information assurance is a standing item on the agendas of the Management Board and Audit and Risk Committee and senior managers are required to review information security compliance in their quarterly statements of assurance. Business Resilience 7.9 The Government s Security Policy Framework emphasises the need for effective business continuity management (BCM). The PPS has established a programme to deliver BCM in a manner that enables the continued delivery of key services during an interruption and which will align the PPS with the British Standard (BS25999). PPS now has an Incident Management Plan and Business Continuity Plan in place, while work continues to develop corporate services recovery strategies to support the organisation during an interruption. Procurement 7.10 PPS is entitled to rely on the Department of Finance and Personnel s centre of procurement excellence, the Central Procurement Directorate, to conduct all procurement over 10,000 under a service level agreement. Where CPD lack the resources to undertake a procurement exercise within a reasonable time frame PPS is entitled to oversee procurement exercises up to 30,000 independently. Any procurement over 30,000 must be overseen by CPD. Post devolution the PPS has developed and introduced new procedures to ensure continuous improvement in the areas of purchasing and procurement. PPS Corporate Governance Framework V

28 Other Support Mechanisms 7.11 Other support mechanisms include: A Business Improvement Team to assist the Accounting Officer in meeting his responsibilities with regard to the efficient and effective use of human and other resources. Regular financial and performance reports provided to senior management. A departmental health and safety office to assist the department in meeting its duty of care to ensure the health, safety and welfare of PPS employees and visitors to PPS premises. A Media and Communications Unit to provide a communications service to the Director and senior staff. A Central Co-ordination / Departmental Assembly Liaison function to assist in managing relationships with the Assembly and to ensure that the Service meets its obligations under Freedom of Information and Data Protection legislation. A Management Information Section to provide support in terms of statistical analysis, performance data and research. All statisticians are seconded from the NI Statistics and Research Agency. PPS Corporate Governance Framework V

29 Annexes PPS Corporate Governance Framework V

30 Annex A: PPS Organisational Structure PPS Organisation Chart Director Deputy Director Senior Assistant Director Senior Assistant Director Senior Assistant Director Belfast Northern Eastern Western & Southern Central Prosecutions Fraud & Departmental Policy High Court Regional Prosecutors Assistant Directors Central Management Unit ICT Human Resources Finance Property Management Business Assurance Corporate Services Heads of Business PPS Corporate Governance Framework V

31 Annex B: Management Board Terms of Reference Introduction Under the provisions of the Justice (Northern Ireland) Act 2002 the Director of Public Prosecutions for Northern Ireland bears responsibility for the conduct and performance of the Public Prosecution Service for Northern Ireland (PPS). The role of the Management Board is to support the Director in reaching decisions on the strategic direction of the PPS, the development and implementation of appropriate strategy and in meeting his corporate governance responsibilities for the Service. This document sets out the Management Board s objectives and remit, membership, responsibilities and operating procedures. Objectives and Remit The objectives of the Management Board are to: Ensure the Service achieves the strategic vision and aim of the PPS; Ensure accountability for the Service s performance; and Provide assurance that the organisation is managed effectively. The Management Board s remit is to: Set the strategic direction of the Service through the PPS Corporate Plan strategic priorities and objectives; Approve published business plans; Approve the PPS Annual Report and Resource Accounts; Set the Service s standards and values; Ensure robust governance, internal control and compliance systems are in place which are supported by effective risk management; Lead and oversee the process of change to enhance the Service s capability to deliver; Monitor the use of resources and the achievement of performance objectives; Approve all major projects and strategic initiatives and policies impacting on corporate and business plan objectives, ensuring that there is alignment with existing budgetary and resource plans; and PPS Corporate Governance Framework V

32 Approve all expenditure decisions over a limit of 50,000. Take corporate decisions on high level operational issues. Audit and Risk Committee The Management Board is assisted by the Audit and Risk Committee (ARC) which meets at least four times per year and supports the Director of Public Prosecutions in the discharge of his accountability responsibilities. Delegation of Function The Management Board may decide to delegate certain matters for consideration by sub-committees of the Board. In such an event, each sub-committee will be chaired by a Board member with clear terms of reference, including the scope of any decision making and the reporting requirements for the Board. Membership The membership of the Management Board comprises: Director of Public Prosecutions Deputy Director of Public Prosecutions Senior Assistant Director (Regional Prosecutions) Senior Assistant Director (Finance and Resources) Independent Non-Executive Member Independent Non-Executive Member The Management Board will be chaired by the Director of Public Prosecutions and in his absence by the Deputy Director of Public Prosecutions. The non-executive members role is to bring to the Board experience and expertise from outside the Public Service (see below). Responsibilities The Management Board is responsible for the development of strategy and for supporting the delivery of that strategy. This includes taking steps to ensure that business is prioritised and decisions implemented in accordance with the objectives set by the Board. Whilst the ultimate decision making responsibility remains with the Director, the Management Board shall seek to reach agreement on a consensus basis. The Management Board shall not exercise any function in relation to individual prosecutorial decisions. PPS Corporate Governance Framework V

33 Conduct All Board members have a responsibility to act in accordance with the PPS Code of Ethics, following the Seven Principles of Public Life. Responsibilities of Executive Board Members The individual role and responsibilities of each executive member are clearly defined and agreed with the Director of Public Prosecutions. In addition, executive members have a responsibility, in tandem with fellow Board members both executive and non-executive, for the management and governance of the PPS as a whole and should attach the highest priority to attending all Board meetings. In undertaking their role, each executive member must: Discharge the responsibilities of their particular post, taking full account of the interests of, and implications for the remits of other Board members and the Service as a whole; and Adopt a corporate approach in participating in all Board decisions and discussions, in particular those concerned with the development of strategic and business plans and the allocation of resources. At Board meetings, executive members are expected to take a corporate view of issues ahead of their individual post s interests, to rigorously examine and challenge all proposals before the Board and to do so in a constructive way. Responsibilities of Non-Executive Board Members The primary role of the non-executive members is to contribute to the good governance of the Service. Non-executive members should be prepared to offer constructive challenge with a view to ensuring that all aspects of strategy and delivery are scrutinised for effectiveness and efficiency. In particular responsibilities of the non-executive members should include: Participating fully in the formulation of business planning, strategy development and audit and risk management; Participating fully in the process of monitoring the Service s progress towards meeting agreed objectives and targets; Challenging the process of policy formulation; Participating in, and challenging, the financial planning of budgets and decisions on budget bids and easements; PPS Corporate Governance Framework V

34 Chair, and membership of, the Audit and Risk Committee and membership of other committees as agreed by the Board; and Representing the Service as required. Board Members Interests In keeping with the requirement that all public bodies must set up, maintain and make available for public inspection a register of Board members interests, all Board members must make an annual declaration listing any: Directorships held in private companies or Public Listed Companies (PLCs); Private companies, businesses or consultancies which they own (or part own) and which may seek to do business with the PPS; Positions of authority held in charities or voluntary bodies in areas related to the work of the PPS; and Connections with voluntary or other bodies contracting with the PPS. The Register of Interests is collated and retained by the Board Secretariat. Operating Procedures Attendance In the event that a Board member is unavailable to attend a Board meeting, there is no requirement for deputies to attend. Other members of staff from within the Service may be called to attend meetings on an ad hoc basis. The Board Secretariat will be in attendance to support all meetings (see below). Support to the Management Board The Board will be provided with a secretariat support service by the Central Management Unit. Business The Management Board of the Public Prosecution Service will meet every two months, or more regularly should the need arise. There will also be a meeting of the Board in September, dealing specifically with financial issues. Meetings will normally take place during the second week of the month. An agenda will be prepared by the Assistant Director for Corporate Services with input from individual Board members as required. The Director of Public Prosecutions, as Chair, will approve the agenda prior to final circulation to members. PPS Corporate Governance Framework V

35 All papers for consideration by the Board are required to be with the Board Secretariat at least seven days prior to a meeting for distribution to members. If papers are not sent to the Secretariat in time or are incomplete they may be held over for the following meeting. Papers for the Board should be headed and numbered in a standard format and should include an executive summary with all supporting material contained in annexes. Where urgent decisions are required between Board meetings, the issue may be dealt with by correspondence. If, exceptionally, an urgent issue cannot be dealt with by correspondence, the Director will make a decision and advise the members of the Board accordingly. Board minutes The business conducted at the Board, together with decisions reached and actions required, are recorded in minutes prepared by the Board Secretariat. In order to maintain confidentiality (for example with regard to issues of commercial sensitivity), where required the Director as Chair should declare sessions of the Board meeting as open or closed. Draft minutes will normally be available for approval by the Board within five working days of the Board meeting. Minutes should include a list of the action points agreed by the Board. The approved minutes of Board meetings will be made available to staff internally through the PPS Intranet, and externally via the PPS website. Published minutes will exclude any items declared as confidential (i.e. items discussed during closed session). Board Performance The Board will undertake an annual evaluation of its performance. Every three years it will formally consider its remit, membership and operating procedures. Review These Terms of Reference will be reviewed on an annual basis. PPS Corporate Governance Framework V

36 Annex C: PPS Corporate Governance Structure (2011/12) Director A.R.C. Management Board Senior Management Group Performance & Delivery Policy And Quality Business Managers Forum Organisational Change Team Task Task Force Youth Specialist Group Sexual Offences Specialists Domestic Violence Group CLT Forum V&W Working Group People and Resources SCF Whitley Arrangements Health & Safety IIP BCM EDSG Key: ARC Audit and Risk Committee CLT Forum - Community Liaison Team Forum V & W Working Group - Victim and Witness Working Group SCF - Staff Communication Forum IIP - Investors in People Working Group BCM - Business Continuity Management Working Group EDSG - Equality and Diversity Steering Group