MD3274 Updates to GLA Governance Documents

1.1.    As part of its commitment to high standards of governance and transparency, each of the GLA’s core governance documents are subject to regular review. Two of these – Mayoral Decision-Making in the GLA, and the Financial Regulations have recently been reviewed. They were last approved in April 2022 through MD2830.
1.2.    The table below sets out the purpose of each document and the main changes proposed. The full versions are appended to this form. 

1.3.    Following the Mayor’s approval, the revised documents will be shared with the London Assembly for information. All staff will be notified through internal communications when the revised documents are published, and more detailed guidance and support is provided by teams in the GLA, principally Performance & Governance and Financial Services.
1.4.    Other governance documents are in the process of being reviewed and consequential amendments made, most significantly to the Contracts and Funding Code (’the Code)’. A review of the Code is in progress due to changes that may be necessary as a result of the Procurement Act 2023 and associated regulations coming into force.
1.5.    Section 15 of Mayoral Decision-Making in the GLA summarises where a number of Mayoral and GLA consents are required under the Articles of Association of arm’s length companies (London Treasury Limited, LTLF GP Limited and GLIF Limited). These include requirements for borrowing and property transactions to be approved by the Mayor (over £150,000), and for GLA officers (below that level). In line with the uprating of financial thresholds referred to in the table above, it is proposed that this figure also be changed to £250,000. The Articles of Association include the £150,000 figure and, as amendments to them are a matter requiring Mayoral approval, it is proposed that the Mayor also approves that the relevant GLA Directors are authorised to amend the respective Articles at the same time.  
 

2.1.    Through updating these documents, the objective is to continue to provide strong governance arrangements that enable the GLA to conduct its business in accordance with the law and high standards of governance; to safeguard and properly account for public money, spending it economically, efficiently and effectively.

3.1.    Under section 149 of the Equality Act 2010, the Mayor and the GLA are subject to the public-sector equality duty (PSED) when exercising their functions, including when taking decisions.  The PSED requires the GLA and the Mayor, in the exercise of all of their functions, to have due regard to the need to eliminate unlawful discrimination, harassment and victimisation and any other conduct that is prohibited by or under the Equality Act 2010; advance equality of opportunity between people who share a relevant protected characteristic and those who do not; and foster good relations between people who share a relevant protected characteristic and those who do not. The protected characteristics are: age, disability, gender reassignment, pregnancy and maternity, marriage and civil partnership (but only in respect of the requirements to have due regard to the need to eliminate discrimination), race (ethnic or national origins, colour or nationality), religion or belief (including lack of belief), sex, and sexual orientation.
3.2.    The documents that are the subject of this decision ensure that the GLA takes decisions and manages its resources with probity and value for money and therefore assists the GLA in delivering for all Londoners. No specific adverse impacts for any groups sharing a protected characteristic have been identified. 
3.3.    Mayoral Decision-Making in the GLA encompasses a formal decision-making process that ensures the consideration of equality implications is built into the process.
 

Risks and issues:

Link to Mayoral strategies and priorities
4.1.    Robust corporate governance arrangements, including as set out in each of these documents, support the full breadth of the Mayor’s priorities as well as the efficient and effective use of public money and the GLA’s commitment to openness and transparency.
Conflicts of interest
4.2.    There are no conflicts of interest to note from any officer involved in the drafting or clearance of this Decision Form. 

5.1.    The documents refreshed and included here for approval form a framework for ensuring probity and value for money in the conduct of the GLA’s day to day business. It is essential that they are reviewed periodically and updated to reflect changes in the operating environment. Whilst there are no direct costs arising from the approval of these documents, they will have a wide-reaching impact on budgetary management across the organisation.

6.1.    In line with a range of applicable statutory requirements and good practice, the GLA’s governance arrangements are designed to ensure it:
•    conducts business in accordance with the law and high standards of governance
•    safeguards and properly accounts for public money and spends it economically, efficiently and effectively
•    sets clear expectations for the Mayor, Assembly Members and GLA staff – and in particular, that their conduct upholds the seven principles of public life: selflessness, integrity, objectivity, accountability, openness, honesty and leadership. 
6.2.    Where the documents mentioned in this form confer the ability to take decisions on specific post holders (e.g. the Statutory Deputy Mayor, the 11+2, and other GLA Staff) that involve the exercise of Mayoral powers, they are authorised to do so under sections 38(1) and 380 of the Greater London Authority Act 1999 (GLA Act) and any other specific statutory power enabling them to do so.
6.3.    The approval of the revised Mayoral Decision-Making in the GLA document (Appendix A) is a Mayoral decision as its contents involve the delegation of functions of the GLA exercisable by the Mayor by (as relevant) GLA staff and the Statutory Deputy Mayor under sections 38(1) and 380(1) of the GLA Act and any other relevant statutory provisions.
6.4.    The approval of the revised GLA Financial Regulations (Appendix B) is a function of the GLA that is exercisable by the Mayor under section 35(2) and (3) of the GLA Act, on the basis that the exercise of the relevant statutory powers they involve has not by legislation been made to be one exercisable by the Assembly (alone) or by it and the Mayor acting jointly.
 

Appendix A – Proposed new version of Mayoral Decision-Making in the GLA
Appendix B – Proposed new version of Financial Regulations