HEE`s Governance Arrangements

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assessment
24 March 2015
HEE’s transition to Non-Departmental Public body: update on
progress, changes and governance arrangements
HEE Mar 15.5
Mike Jones
Lee Whitehead
Applicable
This paper provides an update on arrangements for HEE to become
a Non-Departmental Public Body.
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Approval
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To Note
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Decision
The Board is asked to note progress, changes and governance
requirements relating to HEE becoming a Non-Departmental Public
Body.
HEE’s status change is a legislative requirement.
The risk of any delay to HEE’s scheduled transition from Special
Health Authority status to that of Non-Departmental Public Body has
been mitigated through the allocation of dedicated resource to this
work, and regular liaison with HEE’s Departmental sponsor team and
others to resolve any issues as they arise.
Resource for the transitional work is in place.
The values of the NHS Constitution are integral to and underpin all
HEE activity.
The Care Act 2014 stipulates that HEE becomes an NDPB.
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1. Background
The Care Act 2014, which came into force in May 2014, stipulates that Health Education
England (HEE) shall become a Non-Departmental Public Body (NDPB). Secondary legislation
to give effect to the provisions outlined in the Act was prepared and Statutory Instruments
(SIs) made. The latter were laid in Parliament in December 2014 so, these having passed
into law, HEE is now set to become a NDPB on 1 April 2015.
2. Regulations
The HEE Regulations laid in December 2014 will come into effect on 1 April, along with the
Commencement Order which gives effect to the powers in the Care Act, that establish HEE
as a NDPB. The following legislation is relevant and applicable:
The Care Act 2014 (Commencement No.3) Order 2014 SI 2014 No 3186
The Health Education England Regulations 2014 SI 2014 No 3125
The Health Education England (Transfer of Staff, Property and Liabilities) Order 2014 SI 2014
No 3218
3. Reasons for change of status
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Establishing HEE as an NDPB, as specified in the Care Act 2014, means its role and
responsibilities relating to health and the wider education and training system are
enshrined in primary legislation
NDPB status means HEE will operate on a new statutory basis with clearly defined
duties and powers
The Secretary of State has regulation making powers in respect of HEE’s activities;
the Care Act ensures these powers are subject to parliamentary control, which
makes relevant control measures more transparent.
4. Summary benefits of HEE becoming an NDPB
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HEE is established in primary legislation
It gives HEE parity with other key bodies in the system
It gives stability to the education and training system for health and social care in
England
5. HEE duties and powers defined by the Care Act
The Act places a number of duties on HEE, including:
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Exercising the Secretary of State’s duty to ensure an effective education and training
system
Ensuring the supply of sufficient numbers of health workers with the right skills and
behaviours
Publishing annual workforce priorities and expected outcomes
Exercising functions with a view to securing continuous quality improvement
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Obtaining necessary advice from patients, professional regulators, Royal Colleges
etc.
Having regard to the NHS Constitution and to promoting research activity
The Act requires HEE’s Local Education and Training Boards (LETBs) to:
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Meet rigorous establishment criteria
Represent the interest of all providers in their area
Prepare and publish workforce plans, with sign off by HEE
Fulfil rigorous establishment criteria and deliver workforce plans using delegated
authority from the HEE Board
The Act requires that commissioners ensure all providers of NHS services co-operate with,
and provide necessary support, to the LETB in their area. The Act establishes a tariff based
system for funding clinical education and training.
6. HEE’s accountability as an NDPB
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HEE, in its role providing national leadership for education and training for the NHS
and public health system, will continue to be accountable to the Secretary of State
for Health
The Secretary of State will continue to have regulation making powers in respect of
HEE’s activities but these will be subject to Parliamentary control and as such fully
transparent
The Secretary of State will no longer be able to issue new Directions to HEE and will
instead rely on powers set out in the Care Act or on regulation making powers
provided by the Act: the Act also provides powers to direct with regard to financial
and accounting matters.
Accountability between HEE and the Department of Health (DH) will remain the
same. The DH / HEE Framework Agreement sets out the critical elements of this
relationship including reporting arrangements.
HEE’s Chief Executive will remain the designated Accountability Officer for HEE as an
NDPB
Ministerial appointments to HEE’s Board will continue to be made in accordance
with the Commissioner for Public Appointments’ Code of Practice
HEE Board members will continue to adhere to the Guidance on Codes of Practice
for Board Members of Public Bodies
HEE will be expected to continue to publish Annual Reports and Accounts and have
these lain before Parliament
The Care Act gives LETBs clearly defined functions in their own right
LETBs, as sub-committees of HEE Board, will continue to operate under formal
schemes of delegation from HEE
LETBs will continue to be accountable for managing budgets efficiently and will
report upwards to HEE through annual accountability arrangements
Once HEE becomes an NDPB, legislation specifies that LETBs must include a
minimum of three members with clinical expertise – a doctor, a nurse and someone
from another regulated health profession
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7. Finance
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A letter will be issued to the HEE Chief Executive conferring Accountability Officer
status for HEE as a NDPB
HEE’s Schedule of Delegation is issued annually. There will be no fundamental
change as approval limits are the same for Special Health Authorities, i.e. what HEE is
now, and NDPBs – what it is set to become.
HEE will work with the DH Finance Team to ensure assets are shown moving from
HEE as a Special Health Authority to HEE as NDPB
Accounts Directions will be provided to HEE by the DH Finance Team; no additional
work is envisaged as a result of HEE’s status change
8. International activity
DH is due to write to HEE to confirm the international activity powers we will have as a
NDPB. This is due to be received during the week commencing 16 March 2015.
9. LETB Accountability Frameworks
HEE will not be making any changes to the LETB Accountability Framework ahead of 1 April
2015, but this will be reviewed during 2015/16.
10. HEE Board appointments
Provision has been made for relevant Non-executive Director Board members to receive
updated terms of appointment letters before 1 April 2015.
11. Seal
HEE has procured a seal, as required, for use on official agreements and documents from 1
April 2015.
12. Board Governance requirements
As described above, HEE will be formally established as an Executive Non-Departmental
Public Body with effect from 1 April 2015. This will replace HEE, the Special Health
Authority, which was originally established on 28 June 2012.
This change in the organisation’s status means the Board will need to complete a number of
governance tasks at its first full meeting as a NDPB on 21 April 2015. This will help to ensure
that our business occurs on a sound legal basis.
Please note that there is no provision in the Care Act for the HEE Special Health Authority
Board to complete required actions in advance, i.e. at its final meeting on 24 March 2015.
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On 21 April 2015, the Board will need to do the following:
a. Appointment of Executive members to the Board: the Chair and Non-executive
Directors will need to ratify the appointment of Executive members to the Board.
(The Chair and Non-executive Directors will convene on 1 April 2015 to confirm
Executive appointments). This is a formal governance requirement that relates to
Board appointment only, not ratification of employment; the latter is assured under
the provisions of the applicable Transfer Order.
b. Confirm Non-executive Director roles: further to the above, for completeness and
transparency, the Chair will confirm Deputy Chair, Audit & Risk Committee, and
Remuneration Committee, Chair roles
c. Approval of key governance and policy documents: the Board will be asked to adopt
or approve various essential governance documents. The change in the
organisation’s status will not require an intrinsic, radical overhaul of existing
governance arrangements, but it will require the NDPB Board to approve and
endorse them formally.
Documents that will require approval include:
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Standing Orders, including Terms of Reference for HEE sub-committees: LETBs,
Audit and Risk Committee, Remuneration Committee.
Standing Financial Instructions
Scheme of Delegation
Approach to Risk Management
Amendments may be minimal but necessary: all references to HEE as a Special
Health Authority will be expunged and replaced by references to HEE as NDPB. In
addition, the opportunity will be utilised to refresh documents, e.g. Standing
Financial Instructions will now refer to updated procurement guidelines.
Work is currently ongoing to ensure existing policies and procedures are updated to
reflect HEE’s change of status (and recent structural revisions). The Board will be
provided with a summary of policies revised and an explanation of what key changes
have been applied consistently to those policies.
d. Declarations of Interest: the Chair will ask Board members to confirm that they have
completed new declarations of interest (declarations will be completed prior to the
meeting).
e. Appointment of Local Education and Training Boards: the Board will be required to
confirm appointment of its LETBs. As per 9 above, this will be done utilising existing
accountability arrangements, subject to future review.
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