3.1 The Nuclear Decommissioning Authority's (NDA) Framework Document 2013 sets out the governance and management framework within which the NDA operates. Key responsibilities are set out in Figure 10 on pages 30 and 31. The Secretary of State for the Department for Business, Energy & Industrial Strategy (the Department) is accountable to Parliament for the NDA's activities and performance. The Department's accounting officer is responsible for ensuring that adequate financial and other management controls applied by the Department to the NDA are appropriate (among other responsibilities). The NDA's accounting officer is responsible for safeguarding public funds for which he has charge, and for ensuring the propriety, regularity, value for money and feasibility in the handling of those funds (Appendix Two).
3.2 UK Government Investments (UKGI) is a government company wholly owned by HM Treasury. It was set up to be the government's specialists in corporate governance and corporate finance. The Department devolves oversight of the NDA's governance and performance to UKGI. UKGI is responsible for liaising with the NDA on all aspects of its work and is the main point of day-to-day contact between the government and the NDA. UKGI reports directly to senior officials in the Department, and advises ministers on the NDA's performance and governance. The Department retains responsibility for nuclear policy, but UKGI is required to provide input on the affordability and value-for-money impacts of nuclear policy initiatives in so far as they impact on the NDA.
3.3 HM Treasury has formal approval points for the Magnox contract at the start of the procurement process and at contract award. Additional HM Treasury approval has to be sought if the NDA goes beyond the funding agreement and is not able to achieve the target of at least 10% savings. Further approval is required for decisions regarded as "novel, contentious or repercussive", such as the NDA's settlement with Energy Solutions and Bechtel.
Figure 10 Key accountabilities within the NDA's governance The Secretary of State for Business, Energy & Industrial Strategy Is accountable to Parliament for the activities and performance of the NDA, including providing information to Parliament about the NDA as required, and seeking Parliamentary approval for expenditure. The accounting officer for the Department for Business, Energy & Industrial Strategy The Department's permanent secretary designates the NDA accounting officer and is responsible for ensuring: • the financial and other management controls applied by the Department to the NDA are appropriate and sufficient to safeguard public funds and for ensuring that the NDA's compliance with those controls is effectively monitored; • that the NDA complies with central HM Treasury and Cabinet Office expenditure controls; • that the internal controls applied by the NDA and any subsidiary companies conform to the requirements of regularity, propriety and good financial management and that adequate flow of information is supplied by the NDA to the Department on matters of performance, budgeting, control and risk management; and The permanent secretary may be required to give evidence to the Committee of Public Accounts or the Departmental select committee on the systems of financial and management control applied to the NDA. The accounting officer of the NDA • Day-to-day operations and management of the NDA. • Ensuring that the NDA as a whole is run on the basis of the standards, in terms of governance, decision-making and financial management as set out in Managing Public Money. • Responsibilities for accounting to Parliament include: signing the accounts and ensuring they are properly prepared and presented, and giving evidence to the Committee of Public Accounts or Departmental select committee. • Responsibilities for accounting to the Secretary of State include ensuring effective systems of corporate governance are in place, and ensuring that any significant problems, whether financial or otherwise, are notified to the Secretary of State in a timely fashion. NDA chair The chair is accountable to the Secretary of State, and to the Scottish ministers where appropriate, for the NDA's activities and performance in implementing the NDA Strategy and Annual Plan. The chair has a particular responsibility for ensuring: • that the Board complies with the Energy Act 2004 and has due regard to relevant government policy, including that of the devolved administrations; • high standards of propriety and regularity, and promoting the efficient and effective use of staff and other resources throughout the NDA; and • that the NDA's affairs are conducted openly, transparently and with probity. NDA Board The Board is collectively accountable to the Secretary of State, or the Scottish ministers where appropriate, for all aspects of the NDA's activities and performance. Board members have collective responsibility for ensuring that the NDA complies with any statutory or administrative requirements for the use of public funds and shall demonstrate high standards of corporate governance at all times, including the use of an Audit and Risk Committee to help address key financial and other risks. UK Government Investments Primary source of advice to the Secretary of State on the discharge of his responsibilities in respect of the NDA. Tasked with promoting compliance with principles of good governance and advising the Secretary of State for Business, Energy & Industrial Strategy at a strategic level on: • how well the NDA is achieving its objectives and whether it is delivering value for money; • appropriate budget and performance targets for the NDA; • novel, contentious and/or repercussive proposals/projects proposed by the NDA or other parts of government, where those proposals might impact on the NDA; and • other responsibilities, including ensuring effective processes, including risk management, are in place; monitoring and reporting the NDA's performance against agreed targets and against its total financial provision; and that the responsibilities and duties of the Departmental accounting officer are discharged. Source: NDA Framework Document 2013 |
3.4 Scottish ministers are accountable to the Scottish Parliament for the activites and performance of the NDA where Scottish ministers have statutory duties and responsibilities under the Energy Act 2004. In conjunction with the Secretary of State, the responsibilities of Scottish ministers include approving the NDA's strategy and annual plan, and providing information to the Scottish Parliament about the NDA.