Annex A
RDA TASKING, FUNDING AND ACCOUNTABILITY (CURRENT
ARRANGEMENTS)
BACKGROUND
The eight Regional Development Agencies (RDAs)
were established under the Regional Development Agencies Act 1998,
and were formally launched in eight English regions on 1 April
1999. The ninth, in London, was established in July 2000 following
the establishment of the Greater London Authority (GLA). BERR
is Whitehall sponsor of the RDAs.
RDAs have a broad remit. They have five statutory
purposes:
— To further economic development and
regeneration
— To promote business efficiency, investment
and competitiveness
— To enhance development and application
of skill relevant to employment
— To contribute to sustainable development
The Regional Economic Strategies (RES), which
are produced by the RDAs in close consultation with a broad range
of regional stakeholders, are the key instrument for identifying
the priorities in each region to foster sustainable growth. RES
Implementation Plans set out the actions that the RDAs and other
stakeholders will take to deliver the RES priorities.
TASKING
The Tasking Framework which the Government sets
for the RDAs has changed over the years of their operation. In
line with the SNR, the earlier detailed framework of many PSAs
and targets was replaced in CSR07 with a single economic growth
objective. This requirement to address the Regional Economic Performance
PSA (PSA 7)—promoting sustainable economic growth in the
regions above the trend over the last cycle and reducing disparities
between regions—gives RDAs considerable freedom to decide
with regional stakeholders how this should be addressed.
FUNDING
The RDAs are financed through a Single Budget
(Single Pot), which is made up of contributions from six Government
Departments (BERR, CLG, DEFRA, DIUS, UKTI and DCMS). BERR is the
sponsor Department for the RDAs and all funds comprising the Single
Budget flow through BERR.
The Comprehensive Spending Review 2007 set the
RDAs budgets for 2008-09 to 2010-11. Agreed contributions from
Government Departments were:
|
| | |
£m |
| Department | 2008-09
| 2009-10 | 2010-11
|
|
| CLG | 1,553
| 1510 | 1,473
|
| BERR | 535
| 523 | 512
|
| DEFRA | 58
| 71 | 70
|
| DIUS | 43 |
66 | 65
|
| UKTI | 17 |
17 | 16
|
| DCMS | 4 |
3 | 3
|
| TOTAL | 2,210
| 2,190 | 2,139
|
|
In addition to their Single Budget, the RDAs have taken over
management of the European Regional Development Fund (ERDF) and
the Rural Development Programme for England (RDPE). Both programmes
running from 2007 to 2013 and together amount to £9bn. Associated
administration costs have been provided by CLG (£6m) and
DEFRA (£4m) respectively for 2008-09; these are included
in the figures above.
As part of the CSR 2007, the RDAs budgets over the three
years were reduced by 2.5% (£320m). In addition, the RDAs
identified cash savings of about £350m, which will be funded
from value for money savings.
ACCOUNTABILITY
As non-departmental public bodies the eight RDAs outside
London are accountable to taxpayers through departmental ministers.
As the RDAs sponsoring department, it is therefore the responsibility
of the BERR Accounting Officer to be satisfied that:
— The financial and other management controls applied
by BERR are appropriate and sufficient to safeguard public funds
and, more generally, that those being applied by the RDAs conform
with the requirements both of propriety and of good financial
management;
— There is an adequate statement of the financial
relationship between BERR and the RDAs (in a management statement/financial
memorandum or similar document) and that this statement is regularly
reviewed;
— The conditions attached to grants or grants in
aid conform with the terms of the Estimates and that BERR monitors
compliance with those conditions.
Each RDA Accounting Officer has full personal responsibility,
which only he/she is in a position to discharge, for the overall
organisational, management and staffing of the RDA and for its
procedures in financial and other matters. The Accounting Officer
must ensure that there is a high standard of financial management
in the RDA as a whole; that financial systems and procedures promote
the efficient and economic conduct of business and safeguard financial
propriety and regularity throughout the RDA; and that financial
considerations are fully taken into account in decisions on RDA
policy proposals. RDAs produce regular reports to Parliament which
are publicly available.
The National Audit Office audit and sign off the RDAs' annual
accounts and report on their review of each RDAs' systems. BERR
sample audits RDA project appraisals and monitoring systems and
BERR Internal Audit have a rolling programme of audit of RDAs'
internal audit functions.
LONDON DEVELOPMENT
AGENCY
The LDA—unique among RDAs—is a functional body
of the Mayor of London under the RDA Act 1998 (as amended by the
GLA Act 1999), and not a NDPB accountable to the Secretary of
State. The Mayor appoints the Board, sets its budget, approves
the Economic Development Strategy for London and its corporate
plan, and can issue directions and guidance to the Agency. The
Secretary of State, nevertheless, continues to have two important
statutory powers over the LDA he provides the majority of funding
through his single pot grant to the Agency and can place conditions
on this grant under section 10 of the RDA Act
The LDA, as a functional body of the Mayor, is subject to
the local government finance and audit framework, and external
audit and inspection is undertaken by the Audit Commission and
its appointed auditor (District Auditor) using their powers under
the Audit Commission Act 1998. The Audit Commission normally publishes
an annual audit and inspection letter for the LDA covering an
opinion on accounts, use of resources and direction of travel
assessments.
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