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3.9 The Role of the Sponsor Department
How does the Board interface with the sponsor Department and the Minister?
The day-to-day link between the body and the Minister is provided by the sponsor Department. Within the sponsor Department, a sponsor team should ensure that the body is adequately briefed about the Scottish Executive's policies and priorities. That team will monitor the body's activities on behalf of the Minister. However, civil servants from the sponsor Department will not normally attend Board meetings of the public body. On any occasion that they may do so, they should not be deemed to be party to decisions taken by the Board.
In particular, the sponsor team within the Scottish Executive prepares a formal document called the Management Statement and Financial Memorandum ( MSFM) which sets out the relationship between the body and the Minister and officials. While MSFMs will vary according to the functions, powers and finances of the body, most include details of:
- the legislative basis under which the body was established and its statutory functions, duties and powers;
- aims and objectives, how these are to be delivered and the key targets to be achieved;
- the roles and responsibilities of Ministers, the sponsor Department, the Chair, Board members and the Chief Executive (and other senior officials) and, the body's accountability to Ministers and to the Scottish Parliament;
- arrangements for the planning, budgeting and control of the body's activities and expenditure, including funding, preparation of Corporate and Operational/Business Plans and setting of performance targets;
- arrangements for preparation and publication of the annual report and accounts and external audit procedures;
- responsibilities of the body for recruitment, pay, grading and other personnel matters;
- arrangements for conducting the Policy and Financial Management Review ( PFMR), or alternative review processes; and
- financial authorities, controls and delegations.
The Board should be consulted when the Management Statement and Financial Memorandum is produced and whenever it is reviewed, which should happen regularly, and at least once every five years. The Board must ensure that arrangements are in place to monitor compliance with the requirements in the MSFM.
When joining the Board, you should have been provided with a copy of the MSFM. If not, you should ask to have sight of it and familiarise yourself with the contents.
It is important that a public body develops a productive working relationship with the sponsor team. It is best if there is good two-way flow of information, if issues on the horizon are shared before they become threatening, if risks and concerns are well understood and if there is honesty and openness.
Importantly, there should be NO SURPRISES - either way!
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