MD2472 Mayoral Decision-Making in the GLA and GLA Financial Regulation

Type of decision: 
Mayoral decision
Code: 
MD2472
Date signed: 
29 May 2019
Decision by: 
Sadiq Khan, Mayor of London

Executive summary

The Greater London Authority’s (GLA) key corporate governance documents are subject to regular review and updates. This decision form seeks Mayoral approval for the refreshed Mayoral Decision-Making in the GLA and GLA Financial Regulations documents. Following Mayoral approval, the two documents will be submitted to the London Assembly for its Members to note.

Decision

That the Mayor approves the updated Mayoral Decision-Making in the GLA and GLA Financial Regulations documents, as appended to this decision form.

Part 1: Non-confidential facts and advice

Introduction and background

The “Mayoral Decision Making in the GLA” document sets out the default scheme of delegation for the exercise of Mayoral Powers within GLA Structures. The Mayor may by a Mayoral Decision form (MD) amend or give specific free-standing delegations outside that framework at any time. GLA Financial Regulations is a complementary document which sets out the GLA’s approach to financial management. The paragraphs immediately below summaries the updates made to each document. The documents were last updated two years ago.

Mayoral Decision-Making in the GLA

The following changes have been made:

• General: minor updates to improve understanding and presentation, and a refresh of job titles, organisation names and other factual references, where required;
• Part C – section 7: greater clarity provided in paragraph 7.7 as to changes to job titles for senior members of staff;
• Part E – sections 8 and 9: greater clarity provided as to planning delegations to the Statutory Deputy Mayor;
• Part F – sections 12 to 15: explanation of differences between GLA-managed and Arm’s Length Companies, and a new section covering decision-making in respect of the two recently acquired Arm’s Length companies: SME Wholesale Finance Ltd and London Treasury Limited (LTL);
• Part G – section 18: amending reporting rules on variations so that it is no longer necessary to prepare a new Decision Form where expenditure decreases, providing that the outputs, outcomes and risk are unchanged; requiring significant GLA corporate contracts to be treated as non-routine expenditure and hence requiring a decision; and clarifying approval routes for staffing costs;
• Part G: a new section setting out arrangements for decision making in respect of the Homes for Londoners Land Fund;
• Part G: a new section summarising the specific decision-making requirements for the Adult Education Budget;
• Part I: amended to reflect the new governance arrangements in place for the London Fire Brigade (LFB); and
• Appendix 1: reserved Mayoral matters – grants to functional bodies of £150,000 or more will continue to be categorised as a reserved Mayoral matter; grants to functional bodies of less than £150,000 will not be categorised as a reserved Mayoral matter (previously all such grants were).

GLA Financial Regulations

The following changes have been made:

• General: minor updates to improve understanding and presentation, and a refresh of job titles, organisation names and other factual references, where required;
• Section 7 on ‘budget transfers’ redrafted so as to provide greater clarity and improve current practices. The term ‘virement’ has been replaced by ‘budget transfer’ which is a more widely understood use of language; and
• A new Section 8 on ‘budget carry forwards’ to set out the process which should be followed across the GLA.

Objectives and expected outcomes

Both documents play a significant role in the good governance of the GLA.

Equality comments

There are no specific equalities issues arising.

Other considerations

There are no other considerations.

Financial comments

Financial issues are integral to the content of the two documents covered by this decision.

Activity table

Activity

Timeline

Mayoral sign-off

May or June 2019

Report to Assembly for information purposes

4 July 2019