March 2015

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Assurance Framework March 2015

Contents 1.

2.

3.

4.

5.

Overview ...................................................................................................................................... 3 1.1

Purpose ................................................................................................................................. 3

1.2

Organisations involved .................................................................................................... 3

1.3

Signatories............................................................................................................................ 3

Background ................................................................................................................................. 4 2.1

Introduction ......................................................................................................................... 4

2.2

Duration ................................................................................................................................ 4

2.3

Scope .................................................................................................................................... 4

2.4

Related documents ........................................................................................................... 4

DLEP Governance ...................................................................................................................... 5 3.1

Accountable Body ............................................................................................................ 5

3.2

Roles and responsibilities................................................................................................. 5

3.3

Conflicts of Interest ............................................................................................................ 5

Funding Programme Governance ........................................................................................ 5 4.1

Process .................................................................................................................................. 5

4.2

Decision making ................................................................................................................ 6

4.3

Local Transport Board ....................................................................................................... 7

Financial management............................................................................................................ 7 5.1

Role of the Accountable Body....................................................................................... 7

5.2

Record keeping ................................................................................................................. 7

5.3

Procurement ........................................................................................................................ 7

5.4

Transparency ...................................................................................................................... 8

Appendix A – Growth Deal Grant offer letter............................................................................ 9 Appendix B – Programme Management Process.................................................................. 12 Appendix C – Monitoring and Evaluation Process................................................................. 14 Appendix D – Accountable Body Service Level Agreement ............................................. 16 Appendix E – Board Terms of Reference .................................................................................. 29 Appendix F – Identification of Projects for funding ................................................................ 37 Appendix G – Business Case Development ............................................................................. 38 Appendix H – Prioritisation of Projects for funding .................................................................. 39

1. Overview 1.1 Purpose This document describes the Assurance Framework in accordance with which funding decisions will be made by the Dorset Local Enterprise Partnership (DLEP) and Dorset County Council (DCC), in its capacity as the accountable body. It provides an agreement between the DLEP and the accountable body to ensure that all public funds delegated to the control of the DLEP are spent with regularity, propriety and provide value for money. This Assurance Framework also intends to provide Government with confidence that funding delegated from national budgets meets with national regulations and guidelines for the appropriate use of public funds. 1.2 Organisations involved 1 Dorset Local Enterprise Partnership 5th Floor, Poole House Fern Barrow Poole Dorset BH12 5BB 2 Dorset County Council County Hall Colliton Park Dorchester DT1 1XJ

1.3 Signatories In signing this document, we, the undersigned, agree to work in accordance with it;

Richard Bates

Gordon Page Lorna Gibbons

Representing Accountable body - Dorset County Council Dorset LEP

Position Section 151 Officer

Dorset LEP

Director

Signature

Date

Chair of the Board

2. Background 2.1 Introduction It is a requirement of the Growth Deal that each Local Enterprise Partnership puts in place a single local Assurance Framework, to provide a robust and accountable process for handling all public funding and ensuring value for money. This framework builds on the LEP Assurance Framework issued by government in December 2014 1 2.2 Duration This framework is intended to cover the period over which Growth Deal funding is allocated, currently 2015-2021. It will be reviewed annually each March in order to ensure it continues to be fit for purpose. 2.3 Scope The Assurance Framework covers all Government funding flowing through the DLEP and focuses on 5 areas: • • • • •

DLEP Governance and decision making Local Authority partnership working across the DLEP Transparent decision making Accountable decision making Ensuring value for money

2.4 Related documents

1

https://www.gov.uk/government/publications/local-enterprise-partnership-lep-national-assurance-framework

The DLEP Assurance Framework is one of four key Growth Deal implementation documents, which should be viewed together as the full context of the DLEP Growth Deal. The other three are; • • •

Growth Deal grant offer letter (Appendix A) DLEP Programme Management Process (Appendix B) DLEP Monitoring and Evaluation Process (Appendix C)

3. DLEP Governance 3.1 Accountable Body Dorset County Council is the Accountable Body for the Dorset LEP. DLEP and DCC have approved a governance structure under which they will operate and through which they will manage all public funds delegated to the DLEP. The relationship between the two organisations and their responsibilities is defined in a Service Level Agreement (Appendix D). 3.2 Roles and responsibilities The roles and responsibilities of the DLEP Board, including guidelines for the recruitment and selection of members are defined in its Terms of Reference (Appendix E). 3.3 Conflicts of Interest Board members are asked to declare any conflicts of interest. A register of Board member interests is kept under regular review. Further details of the DLEP Board can be found on the DLEP website 2 4. Funding Programme Governance 4.1 Process There are 6 key stages in the governance process for the DLEP funding programme: • • • • 2

Identification of projects seeking funding through the regular updating of the Dorset Strategic Economic Plan (Appendix F) Development of robust business cases to support the need for funding (Appendix G) Prioritisation of projects in relation to impact, strategic fit, value for money and deliverability (Appendix H) Allocation of funds via the DLEP Board

http://www.dorsetlep.co.uk/about-the-dorset-lep/the-board/

Robust programme management of selected projects (Appendix B) Monitoring and evaluation (Appendix C)

• •

4.2 Decision making The DLEP must provide assurance to its local partners, stakeholders and Government that decisions relating to the use of public funding are lawful, democratically accountable and transparent. 4.2.1 Lawful All decisions on the use of DLEP funding must take into account all relevant legislation and regulations including, but not limited to; • • • •

Environmental Equality Procurement State Aid

4.2.2 Democratic Local democratic accountability is embedded by the following means; i.

ii. iii.

4 of the 15 board members are elected members from the various local authorities and currently the leaders of Dorset County Council, the unitary authorities of Bournemouth Borough and Borough of Poole and one from the Dorset District councils The DLEP website contains information on all Board meetings, including minutes and records of decision making DLEP will publish an annual report in the first quarter of each year to provide information to stakeholders on all activity and to enable scrutiny

4.2.3 Transparent DLEP is committed to open and transparent decision making. The following arrangements exist to support effective and meaningful engagement of local stakeholders; i. ii. iii. iv.

DLEP Governance documentation is available on the DLEP website Key information relating to funding opportunities is widely disseminated in line with the DLEP Stakeholder Engagement Plan Key documents and policies are shared publicly on the DLEP website Freedom of Information, Environmental Impact Regulations or similar queries relating to funding programmes are dealt with in a timely fashion

v.

Key information relating to the operation of the DLEP Board is freely available on the DLEP website, including meeting dates, forward plan detailing key decision dates, agendas and minutes

4.3 Local Transport Board The LTB’s Assurance Framework was approved by the Department for Transport in January 2014 and the DLEP Board has made the decision to adopt it in relation to managing decisions on and delivery of transport projects. The adopted framework can be found on the DLEP website. We are also working with Infrastructure UK to ensure that we adopt the latest thinking with regards to transport schemes and linking them to growth. 5. Financial management 5.1 Role of the Accountable Body 5.1.1 The accountable body, will receive funding on behalf of the DLEP but will not use any amount for its own purposes 5.1.2 The accountable body is responsible for the proper use and administration of funding and ensuring decisions are made in accordance with this Assurance Framework 5.1.3 The accountable body is responsible for ensuring audit arrangements are in place. This will include of their own processes. 5.1.4 Should the DLEP Board deem the accountable body to have acted outside of the scope of this Assurance Framework or to have discharged its responsibilities in a negligent manner, then it reserves the right to seek an independent audit and review 5.1.5 The working arrangements between DLEP and the accountable body are covered in detail in the Service Level Agreement (Appendix D) 5.2 Record keeping 5.2.1 The DLEP budget will be a standing agenda item at each DLEP Board meeting 5.2.2 The budget will be regularly reviewed with the accountable body to ensure completeness and accuracy 5.2.3 The DLEP Director and s151 Officer of the accountable body will be jointly responsible for the budget 5.2.4 All procurement and contract management information will be held by the LEP/accountable body for 5 years 5.3 Procurement

The DLEP will be governed by the obligations in relation to 'best value' contained in DCC's Contract Procedure Rules dated 1 September 2013 so far as they may be applicable to DLEP procurement activity. 5.4 Transparency The DLEP will comply with appropriate elements of the local government transparency code in relation to publishing financial information.

Appendix A – Growth Deal Grant offer letter

(*correct on date of publishing)

Appendix B – Programme Management Process 1. Grant funding agreements 1.1 A standard grant agreement has been developed by the DLEP and agreed with the accountable body which will be used to manage the distribution of funding to delivery partners and which sets out the conditions for the access of that funding. 1.2 Grant payments will usually be made quarterly in arrears against eligible expenditure and subject to demonstrating achievement of the relevant outputs as evidenced by the stipulated Accompanying Evidence 1.3 The terms and conditions contained within the grant agreement are structured in the following way: 1. Purpose a. Purpose b. Organisations involved c. Key Contacts 2. Scope a. Value b. Duration c. Area covered d. VAT 3. Monitoring a. Expenditure b. Expected Outcomes c. Measurement of success 4. Payment a. Schedule b. Evidence requirements c. Liabilities 5. Audit a. Requirements b. Record keeping 6. Resolution of disputes a. Disputes b. Alterations c. Remedies 7. Procurement 8. Publicity and communications 9. Legal requirements

1.4

1.5

1.6

Progress of projects against their stated aims and outputs will be monitored by the DLEP Programme Management team and reported at each meeting of the DLEP board. The DLEP board has agreed to a management by exception process which uses a Red, Amber, Green traffic light method to report on the delivery of projects receiving DLEP funding. All DLEP board minutes are published on the DLEP website to ensure transparency and accountability

Appendix C – Monitoring and Evaluation Process 1. Monitoring A set of standard project monitoring documentation has been developed in order to maintain a robust oversight of all projects funded by the DLEP. These documents are required to be completed by all delivery partners and returned either on a monthly or quarterly basis, as stipulated in their Grant Agreement. The documents are; a. b. c. d. e.

Spend profile Risk register Highlight report Exception report Lessons log

Submitted documents will be reviewed by the DLEP Programme Management team and discussed at regular, timetabled Project Monitoring meetings. A summary of the key elements from the highlight reports is presented to the DLEP Board as part of the agenda item “Programme Management Update” at each meeting. 2. Evaluation 2.1 As set out in each Grant Agreement, as a minimum, each project must complete a final evaluation report upon completion and produce a case study for dissemination to the appropriate stakeholders. 2.2 Evaluation reports will assess the success of the project in meeting its stated aims and outcomes, as defined in the original business case. This will be reported to the DLEP Board and form the basis of an overall annual report after each funding year. 2.3 Core metrics for evaluation will be agreed with each delivery partner in their Grant Agreement along with the agreed timetable for the production of reports 2.4 Growth Deal projects may be selected for additional evaluation in relation to the requirements set out by the Department for Business, Innovation & Skills.

2.5

2.6

Evaluation work to measure the policy effectiveness of the Growth Deal programme may be undertaken in order to inform best practice in prioritising and selecting projects for future funding It is to be noted that the DLEP Monitoring and Evaluation framework will cover a range of interventions and is not limited to Growth Deal projects

Appendix D – Accountable Body Service Level Agreement

DORSET FINANCIAL

DORSET LEP

AGREEMENT FOR THE PROVISION

OF FINANCIAL SERVICES

(Accountable Body)

BY DORSET COUNTY COUNCIL

TO DORSET LEP

Dated

day of

2014.

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AGREEMENT

THIS AGREEMENT dated is made between DORSET COUNTY COUNCIL acting by the Chief Financial Officer ("the Provider") and DORSET LOCAL ENTERPRISE PARTNERSHIP acting by the Director ("the Client") for the provision of financial services in the manner here set out.

THE AGREEMENT

1.

The PROVIDER shall:

-

Provide a financial service to the Client as detailed in appendices 1 and 2 to this agreement ("the Service").

-

Deal with matters in an economic, efficient and effective way, taking into account the nature of the matter, and the relative priorities of other matters. The Client may, if he so wishes, specify and agree with the Provider that a particular matter shall be dealt with within an agreed timescale and so be accorded priority over other matters referred to the Provider by the Client.

-

Take account of the security standards provided by the Client.

2.

The CLIENT shall:

-

Meet the cost of the Service, calculated in accordance with the provisions of this Agreement.

-

Provide prompt and accurate instructions to the Provider, sufficiently detailed to enable the Provider to provide the Service.

-

Advise the Provider of any changes in circumstances affecting the

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instructions, and respond promptly to reasonable requests from the Provider for information and instructions. 3. -

4. -

CHARGES AND BILLING ARRANGEMENTS The charges to be paid by the Client to the Provider shall be calculated and billed in accordance with Appendix 1. VALUE ADDED TAX In addition to the sum specified in clause 3 the Client shall pay to the provider such Value Added Tax as may be properly chargeable by the Provider in connection with the provision of the service. Any VAT levied will be reclaimable by DLEP.

5.

WORK OUTSIDE OF THAT SPECIFIED IN THE AGREEMENT

-

Due to the evolving nature of the LEP, arrangements to deal with new funding streams will be agreed between the provider and client. Work will be chargeable at £40 per hour plus VAT as applicable (inflated annually) when undertaken by the service accountant.

-

Timescales and scope of any work will be agreed in advance.

-

On-going areas of work can be dealt with through contract variation or annual review of this agreement.

6. -

SPECIALIST SERVICES AND WORKLOAD PEAKS There may arise financial work of a specialist nature that cannot effectively and / or economically be dealt with by the Provider. In these circumstances it will be necessary to engage outside specialists. The nature and cost of this work will be agreed with the Client in advance of outside specialists being instructed.

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-

It may be on occasions necessary to engage outside specialists to deal expeditiously with peaks in the Client's workload. The nature and cost of such work will be agreed with the Client in advance before specialists are instructed.

-

The costs, where so authorised by the Client, of employing any such specialists will be met by the Client.

7.

-

DURATION OF THE AGREEMENT

This agreement shall take effect on 1 April 2015, and shall remain valid until 31 March 2018, unless amended or superseded by a revised agreement between the parties. There shall be an annual review by the Provider and the Client of the services provided, on or around the anniversary of the agreement. This will include consideration of how and by whom the services are provided. There shall also be the option to extend the agreement beyond 31 April 2018 if this is mutually acceptable.

8.

-

-

9.

TERMINATING THE AGREEMENT

Either party may at any time terminate all or any part of this agreement by giving not less than twelve months written notice to the other party or such shorter period as may be agreed in writing between the parties. In the event of termination under this clause, the Provider will be paid the remuneration due up to the date of termination and shall be reimbursed for all costs incidental to the orderly termination of the services. Where issues outside of the control of the client cause termination, such as changes in legislation / national operating models of LEPs, shorter timescales will be agreed in line with the need to close down the existing accountable body responsibilities (final accounts etc.). MONITORING OF THE AGREEMENT

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The Provider shall ensure that -

-

Work undertaken on behalf of the Client is monitored so as to ensure that it is of a proper professional standard. Time is not unnecessarily spent on the Client's matters. Any budgetary or time constraints agreed with the Client for any particular matter are complied with, or the Client is forewarned if they are to be exceeded.

There will be quarterly meetings between the nominated representatives of the Provider and Client to review the performance of the agreement.

10.

DISPUTES

The parties will use their best endeavours to resolve by agreement any dispute as to the working of this agreement. In the unlikely event of failure to agree, the issue shall be referred for determination by a mutually agreed arbiter.

Signed...............................................

Dated............................

(For the Provider)

Signed................................................

(For the Client)

Dated............................

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Appendix 1 Charging and Billing Arrangements.

1. Charges

(i) The fixed charge for acting as the Accountable body for Dorset LEP, undertaking the role detailed in Appendix 2, is £30,000 per annum. The LEP will provide this funding though the administration allocations already earmarked within the Growing Places Fund.

(ii) The charge at (i) above is based on an expectation that the time spent on LEP related activities will average 2.5 days per week (with a pro rata allowance for the officer’s annual and statutory leave entitlement and sick leave, if any is required). If actual service delivery (with the agreement of the Client) requires significantly more or less than this, the annual charge will be adjusted by £300 per day.

A named accountant will be the key point of contact but the time allocation above covers all activities set out in Appendix 2 and will therefore be undertaken by a number of staff within Dorset Financial Services.

(iii) The provider will notify the client of the named individual who will act as the normal point of contact and any changes will be notified to the client in writing. There is no intention for any employer liabilities to be transferred to the LEP.

(iv) The service will include the designated officer’s use of information and advice obtained from colleagues at Dorset County Council in order to carry out the role effectively.

(v) Charges for work in addition to that specified in Appendix 2, as described in Section 5 of the agreement, will be chargeable at £40 per hour, unless agreed otherwise. All work will be estimated and agreed in advance.

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(vi) If, with the agreement of the Client, additional specific specialist work is undertaken for the Client by external parties this will be recharged fully to the client.

2. Billing Accounts for the fixed charges will be raised quarterly in arrears and are due for payment within 30 days. Charges for additional services will be separately billed quarterly in arrears, and shall be supported by details which identify the nature of the ad hoc service and the time spent by the provider in its provision.

Billing arrangements will commencement date of this contract.

3. Inflation

The fixed charge quoted above, together with any other charge or rate specified in this Appendix, will be subject to revision on 1 April in the year following the commencement of this Agreement and annually on 1 April thereafter, based on the annual change in the Retail Prices All Items Index published in the Office of National Statistics' 'Monthly Digest of Statistics' (Table 18.1), calculated using the previous January index.

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Appendix 2.

Details of Service

Growing Places

Growing Places Steering Group

Attendance by named individual at Growing Places Steering Group meetings as finance representative

Payment of Loans

Payment to borrowers of Growing Places loan having confirmed:• • • • • •

Approval by Growing Places Steering Group and LEP Due diligence completed Signed legal agreement in place Appropriate security in place for loan repayment (private sector) Evidence that State Aid issues have been considered and appropriate interest rate has been used (private sector) Minuted approval from Executive Committee of Local Authority of security for loan repayment (local authorities)

Collection of Repayments

Collection of repayments in line with terms set out in the loan agreement • • • •

Monthly invoicing (private sector) Calculation of interest (private sector) Debt management including interest on late payments Ad-hoc invoicing for local authority repayments

Reporting

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Growing Places Steering Group • DCLG • LEP • • •

Monitoring report for each GP board covering loans outstanding / repaid / committed and current balance available for re-investment Input into annual returns to comply with Grant conditions Monthly update to LEP director A quarterly update to the LEP Board All requests for information responded to in a timely manner

Credit Checking

Credit checking for due diligence / interest rate setting as required for compliance with State Aid regulations

Banking / Treasury Management

Banking • • •

Separate bank account maintained for Growing Places fund Bank reconciliation carried out monthly CHAPS payments made for loans

Treasury Management • • •

Active treasury management following DCC Treasury Management Strategy to balance risk V return on cash balances Pooling of GP / LEP funds with DCC balances for treasury management purposes Quarterly apportionment of interest received on the pooled funds to credit GP Fund

Admin Costs

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Legal Payment of invoices to DCC Legal Services or their competitively procured Private Sector Partner (Currently Michelmores) for Growing Places contract work Finance •

Cost will be recovered through this SLA as part of the annual agreed charge LEP to receive a quarterly report evidencing the offer time spent on LEP matters to evidence the cost (for the whole service) •

Accounting

Provision of annual financial statement of fund as at the end of March, in line with statutory timetable for publishing accounts (currently 30 June) Accounting for GP fund within DCC accounts as agreed with the External Auditor Maintenance of Growth Fund / LEP accounting records within SAP as separate company

NOTE - External advice may be required for ad-hoc VAT / Partial Exemption / Tax advice at additional cost. This will be agreed in advance with the client

DLEP

DLEP Board

DLEP to provide electronic copy of committee papers to s151 officer

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Attendance at DLEP board as s151 officer (or representative) of the accountable body as required. Attendance will be notified to DLEP in advance of the meeting.

DLEP Revenue Costs

Payment of invoices re DLEP activities on receipt of • •

Authorised invoice in line with the Scheme of Delegation Identification of funding source

Payment of LEP board members travel claims in line with the travel / expenses policy of DLEP

Reporting

LEP Board • Financial overview / issues report for each LEP board meeting DCLG • DLEP •

Grant returns and monitoring statements as required for section 31 grants and other specific grants Monthly update to LEP director

Grants

Advice re LA finance approval prior to grant submissions (from s151 officers / council executive committees etc.) Receipt of s31 Grants Grant claims / returns for Core Funding

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Audit arrangements

Ensure adequate audit arrangements are in place across DLEP activities. Audit plan to be agreed in advance by DCC and the LEP

Accounts

Provision of annual financial statement of LEP activities Accounting for LEP funds within DCC accounts as agreed with the External Auditor Maintenance of LEP accounting records within SAP as separate company

Banking / Treasury Management

Banking • • •

Separate bank account maintained for LEP funds Bank reconciliation carried out monthly CHAPS payments made as required

Treasury Management • • •

Active treasury management following DCC Treasury Management Strategy to balance risk V return on cash balances Pooling of GPF / LEP funds with DCC balances for treasury management purposes Quarterly apportionment of interest received on the pooled funds to credit DLEP

Growth Deal

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•

Ensure grant agreements are in place for each recipient covering all issues detailed in the “Growth Deal Principles” document and the LEP assurance framework

•

Hold funding and make payment to delivery bodies in line with the grant agreements

•

Maintenance of Growth Deal accounting records within SAP as separate company from DCC

•

Provide financial statements to DLEP as required

•

Submission of Grant claims to DCLG

•

Put in place suitable arrangements for Audit of grant as required by the party issuing the grant.

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Appendix E – Board Terms of Reference

Dorset Local Enterprise Partnership Board Terms of reference

March 2015

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1.

Purpose

1.1

Dorset Local Enterprise Partnership (‘Dorset LEP’ or ‘the Partnership’) is a voluntary partnership established at the invitation of the Government to act as a strategic body driving economic and employment growth. The Partnership will support a strongly performing, productive and sustainable economy, characterised by a greater incidence of higher paid and skilled jobs, and do this in a manner that harnesses and protects our unique environmental assets.

1.2

The objectives and priorities for the Partnership have been derived following extensive engagement with the Dorset business community:Objectives and supporting priorities

Conurbation

Rural Dorset

Weymouth area

To improve the performance of existing businesses within the BDP, and encourage the growth of new ones • Creating a global hub for trade and international business •

Capturing the Olympic Legacy

•

Securing opportunities for economic growth from offshore renewables

•

Providing support to businesses from start-up to growth

•

Encouraging businesses to “go global” – through export, investment, etc.

•

Encouraging the development of sector-specific business networks

To enhance the skills of our current and future workforce •

Creating a culture of enterprise and improving employability skills, working with schools, colleges and employers

•

Review and implement Employment and Skills Strategy

•

Positively embracing the role of older people within the economy of Dorset

To improve electronic and physical connectivity, particularly through high speed broadband coverage • Achieving excellent broadband coverage

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To create the conditions for enterprise, with an initial focus on establishing a coherent framework for spatial planning • Advanced integrated spatial and infrastructure planning •

Planning positively for sustainable economic growth

1.3

These activities will be developed and worked-up into specific actions through the business planning process to be undertaken by the Board. The outcomes will be an increase in the area’s GVA, jobs growth with an emphasis on quality of jobs, a reduction in C02 emissions, an increase in the creation rate of new enterprises, and an increase in the number of businesses engaging in international trade.

2.

Status

2.1

The Dorset LEP is established initially as an independent voluntary partnership, without formal legal status. It will conduct its activities in the interests of the area it serves and secure its long-term objectives without giving undue favour to any organisation or Board member. Where a legal status is required to enter into contracts, the Partnership will act through one of the first tier local authority partners as accountable body.

2.2

It is anticipated that at some point in the future the Board and/or Partnership will want to establish or transform into an alternative legal identity, in order to optimise delivery or operational arrangements. The Board will be responsible for any such decision, taking account of the operating context and legal advice.

3.

Membership

3.1

The Board will consist of up to 15 members; eight business representatives, including at least one from a social/community/small enterprise, one each from the Higher and Further Education sectors, and four from local authorities (being the Leaders of Bournemouth, Dorset and Poole Councils, and one from the Dorset District and Borough Councils).

3.2

Board members serve in a personal capacity (with the exception of local authority members) and will act in the interests of the Dorset LEP:

The role of business sector members is to represent the views and

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interest of private and community/voluntary sector businesses, with reference to particular sectors, business size and geographic area, whilst always ensuring that decisions are taken in the best interests of Dorset’s business community as a whole. 

The role of local authority members is to represent their constituents, whilst acting in the interests of Dorset as a whole. The District Council member represents the six District and Borough Councils of Dorset.

3.3

All Board members will be expected to act in accordance with the seven principles of public life, as set out in the Localism Act 2011 s28; selflessness, integrity, objectivity, accountability, openness, honesty, and leadership.

3.4

A Chairman will be elected by the Board from among the business sector members. A Vice-chair will be elected from the total membership by the Chairman. Both positions will be subject to three yearly review.

3.5

It is expected that Board members will take individual areas of responsibility, such as leading on specific topics, or representing the Dorset LEP on a national group or collaboration of LEPs.

3.6

Alternate members: in order to maintain consistency and focus alternate members will only be allowed with the prior agreement of the Chair.

3.7

Period of office: Member category

Term of office

Replacement if vacancy arises Open recruitment.

Business

Initial 3 years, renewable for a further two terms subject to open recruitment process.

HE/FE

Initial 3 years, with rotation between institutions every three years.

By nomination by the HE/FE Colleges respectively.

Bournemouth, Dorset & Poole Councils

During the term of office as Leader

By succeeding Leader.

Dorset District & Borough Councils

During the term of office as Leader with

By nomination by the Dorset District &

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rotation between Councils every three years.

Borough Councils.

3.8

Additional members: the Board may co-opt up to three additional people to serve as members, if there is a clear requirement for additional expertise and experience for the successful delivery of the Board’s responsibilities. Co-opted members may only serve a maximum of two years.

3.9

Attendance: Board members (or approved deputies) are expected to attend not less than 75% of Board meetings over a twelve month period. If this attendance rate is not achieved by any member the Board is entitled to review their membership and ask for an explanation before taking further action. A 75% majority is required to rescind the membership of any individual.

3.10 Resignation and removal of members: Business and HE/FE members may resign giving one month’s notice by writing to the Chair. The Chair has explicit authority to hold Board members to account for their performance of their duties. 3.11 The Board acting with a 75% majority of all members may require a member to resign if in the view of the Board:   



The member has failed to attend sufficient meetings or to contribute to the activities of the Partnership. The member has not acted in the interests of the Dorset LEP. The member has failed to declare and/or resolve or otherwise deal with conflicts of interest. The member has failed to act in a collaborative manner with other Board members at meetings or in other settings and is obstructing the furtherance of the work of the Partnership. The member is involved in activities which could bring the Dorset LEP into disrepute.

4.

Conduct of meetings

4.1

Board meetings will be chaired by the Chairman (see 2.3) or in his/her absence by the Vice-chair.

4.2

Frequency of meetings: there will be no less than four meetings per annum, with additional meetings at the discretion of the Board. In the early stages of development of the Partnership more frequent Board

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meetings will be required. At least two weeks’ notice is required for Board meetings, to ensure that all members are afforded the opportunity to attend. 4.3

Quorum: the quorum will be eight, and there must always be a majority of business sector members for a meeting to be quorate.

4.4

Decision making: normally meetings will conduct business on the basis of consensus. In circumstances where a vote is necessary, the decision will be on the basis of a simple majority of those members (or approved alternates) present, except in the following circumstances:  

removal of a member, which will require 75% of all members present to agree amending the membership of the Board, which will require approval of 75% of all members present amendments to terms of reference or change in the strategic direction and priorities of the Partnership, which will require the approval of 75% of all members present

In the event of a tied decision, the Chairman of the meeting will cast the deciding vote. 4.5

Officer support: The Chief Executives of Bournemouth, Dorset and Poole Councils have the right to attend the Board, but have no voting powers. Additional local authority officer attendance is at the discretion of the Chairman, where this will assist the deliberations of the Board. The secretariat for the Board will be provided through the Dorset LEP Core Team. The Board, through the Chair/Director, may invite organisations or individuals to address it on specific issues.

4.6

Working Groups: the Board may establish working groups in order to progress its business and strategic priorities. Working Groups will normally be chaired by a Board member or an appointee of the Board, and may include individuals who are not Board members. Working groups will be advisory and make recommendations for consideration by the Dorset LEP Board. The operational structure of the Partnership will be developed through the business planning process to ensure that it is fit for purpose, effective and sustainable. Where appropriate working groups are already in existence, the Board will normally seek to utilise existing expertise and commitment, rather than create additional structures.

4.7

Board Administration: Dorset LEP Board papers will be circulated electronically to all Board Members at least 7 days in advance of a Board meeting. Minutes from the previous Board meeting along with

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an action log will also be circulated to all Board members at least 7 day in advance of the next meeting. 5.

Standard of conduct

5.1

Conflict of interest: Each agenda will contain an item whereby the Chairman will ask those present to declare if they have any prejudicial interest in any matters under discussion. A member of the Board must regard him/herself as having a prejudicial interest if it is a personal interest which a member of the public with knowledge of the relevant facts would regard as so significant and particular that it could prejudice the member’s judgement of the public interest.

5.2

Anyone making a declaration of interest is not entitled to vote on the matter under consideration and might be asked, at the discretion of the Chairman, to withdraw from the room. It is at the discretion of the Chairman of the meeting to allow anyone making a declaration of interest to speak on the matter under consideration.

5.3

The secretariat will maintain a register of Board member’s interests, updates annually. This will include all company directorships, trusteeships, elected offices, remunerated posts and other relevant interests. The register will be made available to any interested party. Should a Board member’s interests change, he/she will inform the secretariat at the earliest opportunity.

6.

Accountability

6.1

Reporting: the Dorset LEP Board will establish effective communications mechanisms through which it will provide information on its priorities and activities to the wider Dorset business community, local authorities, and Central Government.

6.2

The Board will make available for public scrutiny, except where confidential information is contained, its agendas, business plan, and an annual summary of activities and achievements.

7.

Communication

7.1

The Board will be responsible for the preparation and implementation of the LEP communication strategy. This will include communications with Board members, participating organisations, the wider business community and general public, and other LEPs and relevant bodies outside of Dorset.

7.2

All official communications on behalf of the Dorset LEP Board must be

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through, or agreed by, the Chairman of the Board. 8.

Review Timescales

8.1

These Terms of Reference will be reviewed by the Dorset LEP Board on an annual basis with any changes agreed and minuted in a DLEP Board meeting.

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Appendix F – Identification of Projects for funding In order to identify projects for funding Dorset LEP will put in place for each relevant programme an open and transparent process inviting applications. The primary route for disseminating information about funding programmes will be the Dorset LEP website, though this will be supported by other media and engagement activities to ensure the widest possible spread of information. The Dorset LEP website will contain all of the information required by any interested party in order to make an application. This will include all of the relevant forms needed for completion, such as application forms or evidence pro-formas, and will also contain all of the guidance required to apply. As a minimum, applicants will be required to submit: 1) A funding application form 2) A Project Brief – providing the Project definition (background, objectives, desired outcomes, scope and exclusions, constraints and assumptions, tolerances, users/parties, interfaces) 3) An outline Business Case (reasons needed, link to SEP priorities, options, expected benefits/disbenefits, timescale, costs, investment appraisal including cost:benefit ratio, major risks) All requirements for applicants will be published on the website at the time of the call for applications and will be based on the needs of the particular programme being taken forward. The outline procedure for processing applications will be: 1. Notify potential applicants of funding opportunities and invite applications through the website and supporting activities. There will be a clear deadline for applications. 2. Assess the applications through a transparent process based on Treasury Green Book principles. 3. Prioritise the applications against the strategic priorities for Dorset LEP as outlined in the Strategic Economic Plan. The prioritisation will be undertaken by the DLEP board and will take into account the assessment of applications as outlined in step 2. This procedure can be tailored to the needs of each particular call for applications and will be published on the website at the time that the call for applications is made.

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Appendix G – Business Case Development 1. Once projects have been identified as strategic priorities for the DLEP in accordance with the Project Identification Process, a robust business case then needs to be prepared for presentation to the DLEP board in order to be considered for funding. 2. Business cases will be prepared in line with the PRINCE2 methodology and submitted using the DLEP Business Case template (including a clear VFM statement) 3. A proportionate approach should be used when preparing the business case in line with the scale of the project and the funding to be requested. Accordingly, DLEP expects a proportionate level of evidence base to accompany each business case. 4. Transport projects will be required to use the business case process as defined in the Local Transport Body Assurance Framework, as adopted by the DLEP in addition to emerging policy for example ability to demonstrate growth. 5. All business cases must include a declaration from the applicant confirming that the scheme is State Aid compliant and that it meets the requirements of all relevant UK and EU procurement law. This will need to be at the applicants cost.

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Appendix H – Prioritisation of Projects for funding Prioritisation of projects will be led by the DLEP board. The prioritisation will usually take into account: • • • • • •

The purpose of the project Strategic Fit/Impact Contribution to national policy objectives Value for Money / Benefit Cost Ratio Risk Deliverability, including public support, affordable (taking account of any funding contribution) and deliverable within a clearly defined timescale.

This approach can be tailored for each individual prioritisation exercise dependent on the requirements of the funding programme.