TEES VALLEY INVESTMENT PLAN

SUMMARY OF PROGRAMME MANAGEMENT

ASSURANCEOF SPECIFIC FUNDS

APPLICANT DETAILS
Lead Organisation: / Tees Valley Combined Authority (TVCA Funds)
Registered Address: / Cavendish House, Teesdale Business Park, Stockton-on-Tees, TS17 6QY
Details of Any Joint Venture or Consortium Arrangements:N/A
FUND/PROJECT DETAILS
Title / TVCA Core Costs
Location / N/A
Fund/Project description:
The annual operational costs of TVCA per annum, including staff, premises and other operating costs.
Project Variations:N/A
HIGH LEVEL FUNDING SUMMARY – Not Applicable
Funding / 2017/18 / 2018/19 / 2019/20 / 2020/21 / Total / Status
Total / £3.4m / £3.4m / £3.4m / £3.4m / £13.6m / Approved
The 2017/18 allocation was confirmed in the budget for this year. The others are indicative allocations which will be subject to the budget review annually.
OUTPUT SUMMARY
Rather than produce specific outputs itself, this funding allocation will support the delivery of wider outputs across the entirety of TVCA’s Strategic Economic Plan and delivery programmes.
Output type / 2016/17 / 2017/18 / 2018/19 / 2019/20 / 2020/21 / NET TOTAL / 2021+ / GRAND TOTAL
Match / £0.25m / £0.25m / £0.25m / £0.25m / £1m / £1m
CHECKLIST
Date of Board Approval / 22/03/17
Will due diligence will be done at a later date? / Yes / No / X
Will the investment be evaluated through other means i.e. overview and scrutiny? / Yes / X / No
Will external due diligence provide added value to inform the decision? / Yes / No / X
Is it proportionate to conduct external due diligence? / Yes / No / X
If no why? e.g. too small, not VFM / It will be difficult and costly to conduct and the added value to the decision making process set out below, disproportionate.
Do we have benchmark data available for this type of activity? / Yes / X / No
Is there a conflict of interest e.g. is TVCA to deliver the activity? / Yes / X / No
Is the funding model complex? / Yes / No / X
Do we have the policy skills and data in house to determine VFM? / Yes / X / No
Is the proposal novel and potentially contentious? / Yes / No / X
Is it high risk? / Yes / No / X
IS EXTERNAL DUE DILIGENCE REQUIRED?
Yes / No / X
PROGRAMME MANAGEMENT ASSURANCE FRAMEWORK SUMMARY
Background
As part of the devolution deal agreed for Tees Valley, TVCA’s Single Pot Assurance Framework (“AF”) has been agreed with Government (and will be refreshed annually) and sets out how TVCA will:-
  • ensure accountable and transparent decision making;
  • appraise projects and evaluate schemes to achieve value for money and ensure that funds are spent lawfully;
  • ensure effective delivery of investments; and
  • manage risks.
All potential projects are expected to consider and have full regard to the AF, and:-
  • show clear strategic fit and strategic importance to the Tees Valley;
  • demonstrate their ability to offer value for money;
  • show that they will maximise their impact across the Tees Valley; and
  • offer assurances on deliverability and show consideration for their ability to pay back funding (where appropriate).
Under the AF, TVCA is required to ensure that “an appropriate assessment” is made of investments, to ensure value for money, and that this assessment “will be proportionate to the funding allocated”.
This Funding
As part of the Budget agreed by the TVCA Board on 22 March 2017, it has been agreed that the annual operational costs of TVCA per annum, including staff, premises and other operating costs, will be funded from TVCA’s general funds. Given the nature of this funding, it is not considered to be either necessary or proportionate to undertake formal external evaluation of this allocation.
Assurance on the value for money, transparency and proper decision-making on this particular funding is ensured and demonstrated by the following processesrequired by the AF having been duly followed:-
  • discussion of the budget (including this specific fund) by the Tees Valley Chief Executives on 18th January 2017 and its formal recommendation to the Board;
  • the formal approval of TVCA’s core budget (including TVCA’s core costs) by the TVCA Board at its meeting on 22nd March 2017, with ongoing budget updates to Board scheduled regularly throughout the financial year;
  • TVCA having in place robust Audit & Governance Committee and Scrutiny arrangements; and
  • this report being published on TVCA’s website in accordance with agreed transparency requirements.

TVCA LEAD:
It is not value for money to conduct due diligence on a fund which will support the delivery of the entire programme and the work of the Combined Authority. Capacity reviews have been undertaken and the budget has been agreed with the Combined Authority, if this cost is not met none of the economic outcomes will be realised. Full governance and scrutiny arrangements are in place.
PRINT NAME / Alison Fellows, Investment Director
SIGNATURE /
DATE / 3/5/17
TO BE COMPLETED AFTER MANAGEMENT GROUP:RECORD OF DECISION
CHAIR: / Kevin Parkes, Middlesbrough Council
DATE OF MEETING: / 3/5/17
DECISION: / AGREE

Date Published: 27/4/17