Response
Audit Committee
Recommendation 1
A suitably qualified external member of the Audit
Committee should become its Chairman. (Paragraph 74)
The issues raised by this recommendation are not
clear cut. While a qualified external Chairman, expert in audit
matters, might bring some benefits, these would be offset by the
fact that such a Chairman would no longer be able to provide a
direct linkage between the two Audit Committees and their parent
bodies (the Commission in the case of the Administration Estimate
Audit Committee and the Members Estimate Committee in the case
of the Members Estimate Audit Committee). The Members Estimate
Audit Committee, being a sub-committee of a committee of the House,
could not have an external Chairman without a decision of the
House. Given the effective way in which the audit committees are
currently working, the Commission and MEC have decided not to
make any immediate change to the chairmanship, but will re-examine
this recommendation when it next falls vacant.
Recommendation 2
A rolling programme of NAO value-for-money
audits should be instituted. (Paragraph 74)
The Commission supports the principle of continuing
with a strong element of value-for-money (VFM) audits within the
overall internal audit programme. Given the NAO's role as the
House's external auditor, it is more appropriate if these studies
are, as now, conducted by the House's Internal Review Service
(IRS) and its audit partner (currently PricewaterhouseCoopers)
with technical expertise being sought from the NAO where necessary.
The Audit Committee will be working with IRS to develop a three-year
rolling plan for VFM studies, to ensure that this work planned
and carried out more systematically.
Finance and Services Committee
Recommendation 3
The Finance and Services Committee should operate
more as an arm of the Commission, acting under a clear mandate
giving the Committee substantial authority on the Commission's
behalf to cover the more routine supervisory issues. (Paragraph
77)
This recommendation, which reflects the existing
position, is accepted.
Recommendation 4
The Finance and Services Committee should be mandated
to scrutinise proposals made by Member Committees or House officials,
where these need to be reconciled, before they are considered
by the Commission. (Paragraph 78)
This recommendation, which reflects the existing
position, is accepted. The Finance and Services Committee has
asked to have drawn to its attention cases where there is a need
for such reconciliation or where significant new spending is planned.
Recommendation 5
The Chairman of Ways and Means should be appointed
to the Finance and Services Committee. (Paragraph 79)
This recommendation is accepted but the suggestion
earlier in paragraph 79 that the Chairman of Ways and Means should
eventually become the Chairman of the Finance and Services Committee
would add unduly to the burdens of that office and is not accepted.
Recommendation 6
A member of the Finance and Services Committee,
selected on the basis of interest and experience, should be appointed
to the Audit Committee, 'balanced' by an additional external member.
(Paragraph 80)
This recommendation is accepted. The Commission will
ask the Finance and Services Committee to nominate one of its
members—preferably with skills and an interest in the audit
area—who can be co-opted to the Administration Estimate
Audit Committee. A third external member will be sought for the
Audit Committee.
Administration Committee
Recommendation 7
Individual Members on the Administration Committee
should be invited to track particular services—for example,
catering or IT—on behalf of the Committee as a whole. (Paragraph
81)
The Administration Committee has considered and rejected
this idea in the past, but will reconsider it shortly.
Recommendation 8
The size of membership of the Administration Committee
and of the Finance and Services Committee should be reviewed,
on the basis that smaller bodies of Committee members are likely
to be more effective. (Paragraph 82)
The Administration Committee is not convinced that
a smaller Committee could represent a wide enough cross-section
of the views held by Members. Any reduction in the size of the
Committee would remove the representation of smaller parties on
the Committee.
Clerk of the House/Chief Executive
Recommendation 9
The Clerk of the House should continue to perform
the dual role of Clerk of the House and Chief
Executive/Accounting Officer. (Paragraph 88)
This recommendation is accepted.
Recommendation 10
Succession planning at the most senior level should
address the need for potential Clerks of the House/Chief
Executives to gain senior management experience. (Paragraph
89)
This recommendation is accepted.
Recommendation 11
The method of appointment for the Clerk of the
House/Chief Executive should, in future, be by means of competition,
open to the (inevitably limited) group of suitably qualified candidates,
with a Selection Board similar to those employed for Permanent
Secretaries to Government Departments. (Paragraph 90)
This recommendation is noted. The method of appointment
for a future Clerk of the House will be kept under review.
Office of the Chief Executive
Recommendation 12
The scope of the activities of the Office of the
Chief Executive should be expanded to embrace planning and performance
management functions in relation to the House Service's objectives
and targets, together with an increased communication co-ordination
role. (Paragraph 96)
Recommendation 13
The Office of the Chief Executive's staffing numbers
should be increased, and the post of the Head of the Office should
be upgraded, in the light of these additional functions and responsibilities.
(Paragraph 98)
Recommendations 12 and 13 were accepted and fast-tracked
by the Commission in July 2007. A head of the new Office has been
appointed and the Office will come into effect from 1 January
2008. The Administration Estimate Audit Committee has endorsed
the Accounting Officer's recommendation that the expanded role
for the Office should include internal audit as well as the functions
identified in recommendation 12.
Delegations
Recommendation 14
Each Head of Department should receive an annual
delegation letter, setting out the objectives and targets to be
achieved during the year, the budget allocation for the purpose
and the common policies, systems and processes to be used and
observed in delivery. (Paragraph 99)
This recommendation is accepted in principle. The
Management Board intends to introduce a new, more integrated,
business planning system during 2008/09 that will reflect the
unified nature of the new House Service. The resulting plan will
cover both corporate and departmental activities, giving a better
balance between core services and strategic developments. The
plan will incorporate the elements enumerated in this recommendation.
Performance Management
Recommendation 15
The House Service should adopt a performance management
system based on the Balanced Scorecard and with clear criteria
for achieving success, drawn up by the Management Board and the
House of Commons Commission. (Paragraph 105)
Accepted. The Management Board will be considering
proposals for the adoption of a performance management system
in early 2008. The Board will need to consider how the Balanced
Scorecard can be adapted to the particular circumstances of the
House Service. The Administration and Finance and Services Committees
will be kept informed of progress and consulted where appropriate
(see recommendation 16).
Recommendation 16
One such success criterion should be improved
Members' satisfaction with services, measured by more regular
'rolling' surveys of a proportion of Members. (Paragraph 106)
This recommendation is accepted. The Administration
Committee will be consulted in early 2008 on a proposal to introduce
a rolling survey of Members. It is anticipated that the survey
would also include Members' staff (see recommendation 54)
Recommendation 17
The performance management system should be underpinned
by an activity and functional costing system, together with benchmarking
against 'peer' organisations and areas. (Paragraph 107)
Accepted. Work has begun on development of a functional
costing system—the results will be available during 2008/09.
The Director General of Resources is working with his counterparts
in other parliaments and assemblies in the British Isles to identify
areas of parliamentary activity which are suitable for benchmarking.
Management Board
Recommendation 18
The changes to the composition of the Management
Board should be made soon, but with appropriate action taken to
ensure that it is not perceived as downgrading the importance
of the services provided by those no longer 'on the Board' or
their Departments. (Paragraph 112)
Recommendation 19
A more strategic Management Board with a slimmed-down
executive membership should be created, to comprise: the Clerk
of the House/Chief Executive; Deputy Clerk/Chief Operating Officer;
Serjeant at Arms/Director of Facilities and Support; Librarian/Director
of Information and Communications; Director of Finance and Administration;
and Director of Human Resources. (Paragraph 113)
Recommendation 20
Two external advisers (non-executive directors)
should be appointed to the Management Board, in the expectation
that this will prove as successful as it has in Government Departments,
in supporting the role of the Chief Executive, as well as in helping
the Management Board more generally. (Paragraph 116)
Recommendation 21
Individual Heads of Department should have responsibility
for delivering agreed cross-cutting objectives or processes on
behalf of the Management Board as a whole, acting as senior responsible
owners or process owners, on the basis of wide powers granted
by the Management Board. (Paragraph 118)
Recommendations 18-21 have been accepted in principle.
In October 2007 the Commission agreed, with immediate effect,
to establish a new Management Board to replace the existing Board
of Management. This consists of the Clerk of the House, as Chief
Executive and Chairman, four directors general with functional
responsibilities and up to two external advisors. The Director
of PICT will also attend the Board with executive responsibility
for PICT. This latter arrangement will be reviewed in 2009/10.
The Commission also agreed that the six House departments
other than PICT should be merged into four new departments broadly
aligned with the responsibilities of the Directors General. These
will be:
Chamber and Committee Services—to provide
advisory and other services that support the work of the Chamber
and Committees (including security and ceremonial).
Information Services—to inform the work
of the House and its Members, and to provide information and access
to the public.
Resources—to provide HR and finance support
to the House Service and to administer Members' pay, pensions
and allowances.
Facilities—to provide the accommodation,
catering and other facilities required by the House and to maintain
the fabric of the buildings.
The aim of the Commission and the Board is to create
a fully unified House Service that will provide Members and others
with the highest standards of service. Although the full change
process will take some time to complete, the new Departments will
come into existence on 1 January 2008.
Recommendation 22
Co-ordinating and cross-cutting groups should
be reviewed with the objective of reducing their number and maintaining
control over growth in future. (Paragraph 119)
Accepted. The Office of the Chief Executive will
be conducting a review of these groups on behalf on the Management
Board.
Financial Management
Recommendation 23
The Department of Finance and Administration should
be strengthened, including by the addition of a management accountant,
either by redeployment of staff currently in Departments or by
additional external recruitment. (Paragraph 133)
Accepted. An additional management accountant will
be appointed to the new Department of Resources.
Recommendation 24
Existing financial delegations should be amended
to give the Director of Finance and Administration and his senior
staff greater control over finance staff in Departments, in terms
of performance, professional development and deployment. (Paragraph
133)
Recommendation 25
Finance staff in Departments should have a reporting
line to the Department of Finance and Administration, as second
reporting or countersigning officers for the reports of Departmental
finance staff. (Paragraph 133)
Recommendations 24 & 25 are accepted in principle.
Following on from implementation of recommendations 18-21, the
Director General of Resources has begun a review of the organisation
of finance and procurement that will address the issues raised
in these recommendations.
Procurement
Recommendation 26
The Management Board should conduct a budgetary
exercise, led by the Director of Finance and Administration, under
which each department would be required to present its plans to
the Finance and Services Committee on the basis of alternative
funding assumptions, to inform decisions on future financial allocations.
(Paragraph 138)
This recommendation is accepted in principle. Given
the re-alignment of departments that is underway, it would not
be feasible to undertake such an exercise this year, as reliable
budgetary baselines will need to be re-established. However, once
the new departments are bedded in, the Director General of Resources
and the Office of the Chief Executive will bring to the Commission
proposals for implementing this recommendation.
Recommendation 27
The emphasis of the effort to improve the House's
procurement activity as a whole should be on building the expertise
of contracts managers in Departments to ensure through life value
for money is achieved, and accountability for delivering it pinned
down, rather than focus predominantly on initial purchase costs.
(Paragraph 146)
This recommendation is accepted in principle. Following
on from implementation of recommendations 18-21, the Director
General of Resources has begun a review of the organisation of
procurement and contract management, with the aim of making the
best use of the House's procurement expertise.
Human Resources
Recommendation 28
The delegated model in respect of HR functions
should be reconsidered, with a view to strengthening strategic
and corporate HR functions and removing duplication and diseconomies
in the present system. (Paragraph 156)
This recommendation is accepted in principle. Following
on from implementation of recommendations 18-21, the Director
General of Resources has begun a review of the organisation of
HR (including learning and development) that that will address
the issues raised in this recommendation.
Recommendation 29
A scheme should be introduced to identify and
develop internal talent on a House-wide basis, administered by
central HR. (Paragraph 156)
This recommendation is accepted. Steps have already
been taken to encourage more cross-departmental careers (in both
number and variety). For example a new internal transfer scheme
was launched in November 2007. The Director General of Resources
will also bring forward proposals for managing the careers of
senior staff on a House-wide basis, with the aim of making the
best use of the extensive skills and talent available.
Recommendation 30
The Management Board should include a professionally
qualified Director of Human Resources. (Paragraph 157)
Following on from implementation of recommendations
18-21, the Director General of Resources will be responsible for
both HR and finance matters at Board level. He is advised by a
professionally-qualified Director of Human Resources Management.
Estates and Works
Recommendation 31
The Estates and Works Services Directorates should
be re-integrated under one Director who would provide overall
leadership and ensure coherence, consistency, team working, professionalism
and delivery. (Paragraph 169.i)
Recommendation 31 was accepted and fast-tracked by
the Commission in March 2007. A head of the new directorate has
been appointed and will be in post full-time from 7 January 2008.
Although the full change process will not be complete, the re-integrated
directorate will come into existence as part of the new Department
of Facilities on 1 January 2008.
Recommendation 32
A Programme Office should be set up, the functions
of which should be worked up in the light of the external adviser's
recommendations. (Paragraph 169.iii)
Accepted. The re-merged directorate will include
a programming and planning function, the head of which will report
directly to the Parliamentary Director of Estates.
Recommendation 33
Ownership of the Estates/Works budget and ownership
of the Estate strategy should be pinned down clearly so that financial
authority and operational responsibilities are fully aligned.
(Paragraph 169.v)
Accepted. It is proposed that, once the Parliamentary
Director of Estates is in post, the responsibilities of the post
and the associated finance delegations are incorporated in a formal
delegation from the Director General of Facilities.
Recommendation 34
The Serjeant's Finance Unit (SFU) should remain
outside the new combined Directorate, as a separate organisation
reporting to the Serjeant at Arms: facilitating the works programme
in general; assisting the Serjeant at Arms in financial control
and governance; and providing the necessary transparency and separation
of duties. (Paragraph 169.vi)
Recommendation 35
The SFU should be strengthened beyond its existing
advisory function. (Paragraph 169.vii)
Recommendations 34 & 35 are accepted in principle.
Most of the functions of the Serjeant's Finance Unit are being
incorporated into a new finance unit within the Department of
Facilities. This will be separate from the Parliamentary Directorate
of Estates, and the head of the finance unit will report directly
to the Director General of Facilities. A broader review of business
case procedures is currently being undertaken and will take account
of these recommendations.
Recommendation 36
Levels of delegation for works expenditure should
be reviewed and harmonised as between the House of Commons and
House of Lords to facilitate synchronisation of decision-making
on joint projects. (Paragraph 169.viii)
Recommendation 37
The House's Resource Framework guidance should
be revised in respect of project approval processes, with clarification
of what constitutes 'works', 'leases', 'consultancy', etc. (Paragraph
169.ix)
Recommendations 36 & 37 are accepted, and work
is in progress.
Recommendation 38
Training of project managers should be given high
priority; greater reliance on bringing in project managers from
the private sector may be required. (Paragraph 169.x)
Agreed. Project management is recognised as a skills
requirement across Parliament. If internal resources have a good
grounding in project management skills and experience, then they
have the advantage over external recruits as they can recognise
the specific issues relating to the organisation that can affect
the ability of projects to deliver their objectives. Following
an internal audit in 2006, actions to strengthen project management
capacity are already in hand with the aim of creating a pool of
experienced internal project managers for the longer term. In
the short term, experienced external project managers will be
required and part of their duties will include mentoring internal
staff in order to assist the development of an internal skills
base.
Connecting Parliament with the Public
Recommendation 39
The House should endorse the Administration Committee's
proposals for a dedicated space for learning. (Paragraph 188)
On 12 June 2007 the House resolved that…
….this House approves the First Report of the
Administration Committee, on Improving Facilities for Educational
Visitors to Parliament (House of Commons Paper No. 434); and endorses
the Committee's proposals, including a dedicated space for educational
visitors to be provided on or off the Estate complemented by engagement
with those who do not visit Westminster.
Options for how to provide the enhanced education
facilities were considered by the Administration Committee in
November. The Committee agreed that a fuller feasibility study
should be carried out on one of the options.
Recommendation 40
The Parliamentary website and the internet generally
should be regarded as a key element in fostering close connections
between Parliament and the public, and crucially the younger generation,
and should be developed and funded accordingly as a priority.
(Paragraph 196)
This recommendation is accepted. The key role of
the website in connecting with the public is recognised and underpins
recent work to improve the site. Appropriate funding will be provided.
Recommendation 41
The Group on Information for the Public should
remain the official-led organisation responsible for developing
policy and programmes in this area, but should be given a stronger
executive role under the chairmanship of the Director of Information
and Communications, mandated by the Management Boards of both
Houses and allocated a budget for this purpose. (Paragraph 202)
This recommendation is accepted in principle. The
re-alignment of the departments that is taking place in response
to recommendations 18-21, will bring a number of major elements
of the GIP programme together within the new Department of Information
Services. This will give the Director General of Information Services
greater executive and budgetary control of the programme. In future,
the role of GIP will be to advise the Director General of Information
Services on the development of policy and programmes in this area.
Recommendation 42
The House Service should actively support Members
in making best use of the Communications Allowance, facilitating
where possible savings in joint procurement of capital equipment
and top-of-the-line software for publishing hard copy newsletters
as well as the design of modern interactive websites. (Paragraph
206)
This recommendation is noted and will be taken into
account when the operation of the Allowance is reviewed by the
Members Estimate Committee.
Service Delivery
Recommendation 43
The Clerk of the House should delegate authority
to one or more principal deputies to take on more of the task
of running the Clerk's Department. (Paragraph 217)
This recommendation is accepted in principle. As
part of the implementation of recommendations 18-21, the Clerk
Assistant has been designated as the Director General of Chamber
and Committee Services.
Recommendation 44
Closer working between the Clerk's Department
and the Library in support of select committees should be developed
further. (Paragraph 217)
Accepted. A project is under way to develop a new
staffing model for the House's researchers and policy analysts
that will provide a better and more flexible service to committees
and individual Members.
Recommendation 45
The broader issue of a more proactive House service,
to facilitate services to Members and consider the provision of
new services, should be examined, in terms of both style and content.
This may be a suitable issue for the Management Board. (Paragraph
217)
This recommendation is accepted in principle. The
new, more integrated, business planning system referred to under
recommendation 14, combined with a performance management system,
should provide a framework within which both the Board and departments
can review the services provided to Members, and consider how
they might be developed and enhanced. The Board will continue
to consult the Administration Committee and Members more generally
through, amongst other mechanisms, the proposed rolling surveys,
to ensure that the House Service is aware of Members views on
services and of their evolving needs.
Recommendation 46
The Library should continue to shift resources
from areas where demand is lessening to those where demand is
growing, based on a developing cost-effectiveness programme. (Paragraph
221)
This recommendation is accepted.
Recommendation 47
The Library should review the prospects for more
joint working with the House of Lords Library. (Paragraph 222)
Accepted. Regular meetings between the two Libraries
to discuss issues of common interest already take place. The Librarians
of the two Houses will establish a working party tasked with making
recommendations on further joint working during 2008/09.
Recommendation 48
The Editor of the Official Report should review
the means by which Members are given the opportunity to check
the texts of their speeches prior to publication. (Paragraph 224)
This recommendation is accepted. Members can now
request that the Hansard text of a speech is emailed to their
parliamentary account for pre-publication checking. This facility
is available for "timed" speeches in the Chamber and
in Westminster Hall other than those made in the Adjournment debate
at the end of the day.
Recommendation 49
A client relations group should be established
within the Serjeant at Arms Department to provide a more responsive
and integrated service to Members for accommodation and facilities,
including a 'one-stop shop' service. It should be achieved by
internal redeployment of staff and headed by a senior manager
dedicated to this Member-facing role. (Paragraph 234)
Recommendation 50
The head of the client relations group would underpin
the role of the Serjeant at Arms as Facilities Director at Management
Board level, which will be crucial in ensuring that a positive
engagement with Members' day-to-day requirements is drawn upon
to inform corporate planning. (Paragraph 235)
Recommendations 49 & 50 are accepted in principle.
The new Department of Facilities will incorporate a client relations
function whose head will report to the Director General of Facilities.
Consideration will be given as to how this concept can be extended
to provide a 'one-stop shop' covering a broad range of House services.
Recommendation 51
Improved on-line information should be provided
to Members about their allowances and expenditure, subject to
the outcome of a feasibility study. (Paragraph 245)
This recommendation is accepted. A feasibility study
has been conducted and the Advisory Panel on Members Allowances
has been consulted on the outcome. A business case for the development
of a system to provide this on-line information is being prepared.
Recommendation 52
Benchmarking of catering services should be conducted
thoroughly in the interests of quality and value for money. (Paragraph
252)
Accepted. An initial benchmarking exercise has already
been undertaken, and the results reported to the Administration
Committee. The results are being used to underpin development
of a new catering strategy. Benchmarking will continue to be used
to assess the performance of catering services and inform planning
and decision-making.
Recommendation 53
The Cabinet Office Independent Reviewer and Central
Sponsor for Information Assurance should be invited to conduct
a health check of Parliamentary IT plans and delivery. (Paragraph
260)
Accepted in principle. A health check of Parliamentary
IT plans and delivery will be conducted during 2008. The Cabinet
Office Independent Reviewer is advising on the conduct of this
health check.
Recommendation 54
The rolling surveys of Members' satisfaction,
which we have recommended as part of the Management Board's performance
measurement system, should also seek the views of a representative
cross-section of Members' staff. (Paragraph 264)
Accepted—see response to recommendation 16.
House of Lords
Recommendation 55
The possibility of providing more services jointly
with the House of Lords should be explored, in the interests of
efficiency, with a view to the eventual establishment of more
joint Departments. (Paragraph 272)
This recommendation is accepted in principle. The
Commission recognises that joint working can be beneficial where
it meets the requirements of both Houses. Many services are already
provided on a shared basis, including works and estates, archives,
security, education, visitor management and ICT. With the exception
of ICT—where PICT is being created as a joint department,
these services are delivered by one House on behalf of both. While
specific proposals would be considered on their merit, active
exploration of options would be better undertaken once the current
re-organisation of the House departments is completed.
No further joint departments are planned at present,
and any new joint department could only be created with the agreement
of the House of Lords. The Commission has approved the formal
vesting of PICT as a joint department on 1 April 2008. It would
be prudent to review the success of PICT before extending this
model to other services. In addition to the "health check"
in recommendation 53, a wider review of the operation of the Parliamentary
(Joint Departments) Act 2007 will be undertaken in 2009/10.
Grants to Inter-parliamentary Associations
Recommendation 56
The House of Commons Commission should take over
responsibility for making grants-in-aid to the four inter-parliamentary
bodies. (Paragraph 275)
In December 2007 the Commission agreed in principle
to take on responsibility for making grants-in-aid to the four
inter-parliamentary bodies from April 2008. Effective mechanisms
for managing this new relationship will need to be put in place.
Under a grant-in-aid arrangement, the staff of the four groups
would not become staff of the House.
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