Key information
Executive summary
The GLA’s corporate governance policies and procedures are reviewed and updated periodically. A review was recently undertaken of four of these documents sitting at the heart of our governance arrangements:
• the Mayoral Scheme of Delegation (now ‘Mayoral Decision-Making in the GLA’)
• the Contracts and Funding Code
• the Financial Regulations
• the Expenses and Benefits Framework
Further to this review, the documents have been updated and are being presented to the Mayor for approval. The fundamental basis and provisions of the four documents have not been altered significantly. Each does now, however, benefit from an improved and more consistent layout, streamlining, and updates to certain details.
The revised documents will come into effect at the point this Decision Form is approved. They will replace all earlier versions.
Decision
The Mayor approves:
• Mayoral Decision-Making in the GLA
• the Expenses and Benefits Framework, noting the wider approval process set out at paragraph 1.4
• the Contracts and Funding Code
• the Financial Regulations
as attached to this Decision Form. In doing so, he authorises the referenced post holders to determine any matter involved in the discharge of their functions under the document in question.
Part 1: Non-confidential facts and advice
1.1. The GLA’s corporate governance arrangements are designed to ensure it:
• conducts its business in line with the law and proper standards
• safeguards and properly accounts for public money and spends it economically, efficiently and effectively
The four documents the Mayor is being asked to approve – at Appendices 1 to 4 – are at the centre of these governance arrangements and integral to meeting the GLA’s governance objectives.
1.2. The documents are updated periodically to ensure they remain current and effective. All four were recently reviewed and updated.
1.3. The purpose of each document and the changes that have been made to it are summarised below. Note that changes common across all four documents are:
• a consistent front-end making the purpose and context of, and the key responsibilities for, each document clearer
• updates to reflect minor changes in legislation and working practices
Approval and delegations
1.4. The authority to approve and amend all of the documents rests with the Mayor, noting that the Expenses and Benefits Framework is approved jointly with the London Assembly and also by the Head of Paid Service . There are, however, delegations to specified senior staff, named in each document, to make certain and more minor amendments.
1.5. The London Fire and Emergency Planning Authority (LFEPA) will be abolished and replaced by the office of the London Fire Commissioner on 1 October 2017. Prior to that point, Mayoral Decision-Making in the GLA will be reviewed and updated to reflect these new arrangements as necessary.
2.1. These core government documents are designing to create, communicate and reinforce robust GLA corporate governance arrangements. Officers will reflect on their efficacy, including of the associated processes, to assist with the preparation of the Annual Governance Statement, which is approved by the Mayor.
3.1. The documents are internally facing protocols that are applicable equally to all staff and, where relevant, elected Members. There are no direct equality implications.
3.2. Mayoral Decision-Making in the GLA sets down a formal decision making process that reinforces the need to consider equality implications
Risk
4.1. The GLA’s corporate risk register includes the following governance risk:
• processes and procedures are insufficiently developed to ensure compliance with legal and regulatory requirements, prevent fraudulent use of GLA resources and maximise effective use of funds
• amendments to the GLA's governance framework are poorly implemented /communicated and prove ineffective
The updates to and approval of the four appended documents will ensure the risk continues to be effectively mitigated.
4.2. To support effective implementation, GLA staff will be made aware the documents have been updated and their importance will be stressed. The governance e-learning module has recently been refreshed and will continue to be used to raise awareness of the GLA’s governance policies and imperatives.
Links to Mayoral strategies and priorities
4.3. Robust corporate governance arrangements support the full breadth of the Mayor’s priorities.
4.4. The Mayor has pledged to be open and transparent. These documents directly and indirectly support that pledge.
5.1. The four appended documents bear on the way in which the GLA manages its financial affairs. There are, however, no direct financial implications arising from this decision.
6.1. The Mayor has the power under section 380 (regarding cultural functions under Part X) and section 38 (all other functions) of the GLA Act 1999 to authorise any function exercisable by the Mayor (whether conferred on the office of the Mayor or exercisable by the Mayor on the GLA’s behalf under the GLA Act 1999 and any other enactment, including powers exercisable by him jointly with the Assembly) to be exercised on his behalf by the Statutory Deputy Mayor and/or by any member of GLA Staff, whether generally or specifically, and subject to any conditions he chooses to impose.
6.2. All four documents involve the authorisation of various specified post holders to make decisions on the Mayor’s behalf, in the subject areas they cover, on a general or ‘standing’ basis and impose conditions. Any postholder(s) referred to in them has power under sections 38 and 380 to determine any matter involved in the discharge of their functions under the document in question.
6.3. Mayoral Decision-Making in the GLA replaces previous schemes of delegation of Mayoral powers to GLA staff and describes the decision-making relationship with GLA Subsidiary Companies. It sets the default position unless some other arrangement is specifically authorised by Mayoral Decision (MD), which it is general policy to avoid as far as possible. Publication of this document satisfies the GLA’s duty, as regards Mayoral powers, to publish any delegations to officers exceeding six months duration .
• The Mayor is prevented by law from delegating a small number of functions and these are listed in Annex 1, Category 1. Those he chooses to reserve to himself as a matter of policy are listed in Category 2, which may be delegated in certain limited circumstances.
• The ‘PSI Application Powers’ (the powers to call-in and determine applications of potential strategic importance) may only delegated to either the Statutory Deputy Mayor or the 12 GLA staff (the 10+2) appointed by him under s 67(1) of the GLA Act. Those post holders currently authorised to exercise these powers are listed at paragraph 9.1 of the document. (The Mayor can change and add to the postholders authorised to exercise the PSI Application Powers by subsequent MD.)
6.4. The Contracts and Funding Code reflects requirements of procurement law and rules affecting tax and National Insurance contributions for those contracted to work for the GLA through an intermediary.
6.5. The Financial Regulations facilitate the Executive Director of Resources’ duties as the Section 127 Officer to secure arrangements for the proper administration of the GLA’s financial affairs.
- Appendix 1: Mayoral Decision-Making in the GLA
- Appendix 2: Expenses and Benefits Framework
- Appendix 3: Contracts and Funding Code
- Appendix 4: Financial Regulations
Signed decision document
MD2085 Updates to the GLA's corporate governance documents
Supporting documents
MD2085 Mayoral Decision- Making in the GLA
MD2085 Expenses and Benefits Framework
MD2085 Contracts and Funding Code
MD2085 Financial Regulations