11December 2013 Mark Bennett Director of Finance & Facilities Shared Business Services & McCracken Update AGC Slide Pack – 11 December

Shared Business Services Update DH Family introductory workshop held with Arvato - October HFEA introductory scoping workshops with Arvato w/c 25 Nov (some shared w HTA): general, Finance & Procurement; Payroll & HR; IT DH Migration Board initiated (2 nd meeting 10 Dec); ToR and representation on Arvato ISSC1 Boards being agreed ‘Small six’ ALBs meeting 17 December – to share notes, compare progress and compatibilities for ‘Arvato lite’ (HFEA, HTA, HRA, NICE, Monitor & NHSLA) January 2016 remains preferred slot for HFEA (and HTA) but some of ‘small six’ might migrate early in 2015 hence engagement now Arvato propose 9-12 month migration standard; 3 month for ‘small six’ HFEA upgrade of SAGE and use of HR.net makes our existing processes not dissimilar to Arvato ISSC1 designs (early days) Becoming clearer that tasks of junior finance role, definitely, and junior HR role, quite probably, substantially transfer to ISSC1

McCracken Review Update Rec 2, on track for April 2014:Job Role for Shared FD developed, DH approved and salary point determined; interviews being scheduled Recs 4 & 13, in progress:Stakeholder engagement survey part of IfQ preparations; Corporate Strategy includes strengthening arrangements and taking action on remainder Rec 5, delayed to summer 2014:Fee Review Group conflict with other stakeholder involvement, not achievable 2013/14 in time for 1 April fee review; next available opportunity 1 October 2014 Rec 6, in progress:Reducing burden essential ingredient and outcome of IfQ Rec 7, in progress:Improved use of information; improved (information) support to ART-conceived – embedded in IfQ Rec 8, on track:HRA / HFEA co-operation agreed Nov 2013 Rec 11, in progress:MHRA joint working an active workstream Rec 10, in progress:Regulatory focus – part of Corporate Strategy Rec 12Complete (eliminate duplication w CQC)

11 December 2013 Mark Bennett Director of Finance & Facilities Update Outstanding Debtors Report:

Outstanding Debtors Report Debtors 2013 month end balances:  February£505k  October£598kInvoiced £370k Overall position little changed, operationally, since last update - ‘Excess’ of about £100k Long-dated outstandings:  £173k related to two clinics managed by same PR, of which:  £42k provisioned March 2013 and approved for no further recovery  Letter to PR drafted, revised and sent 10 December updating on status of £42k and requiring progress on remaining £131k  One clinic financial status is now ok; other clinic invoices pursued  Letter requires formal information from PR and accountant within 14 days contradicting HFEA payment status of the invoices (sent May 2011 and now resent), or  Letter requires payment within 28 days or formal agreement to offset and make progress on legal payables to PR

7 Internal Audit Update HFEA AGC December 2013

HFEA Internal Audit Plan 2013/14 – Progress Update : The following Reviews are at fieldwork stage: HFEA Payroll and Expenses Risk Management Review Review of governance arrangements The following reviews are being scoped with senior management: Justin McCracken/Francis Reviews – Assurance review of HFEA progress in implementing actions Data processing arrangements

HFEA Next Steps : Audit Reviews The reviews listed above will be completed in quarter 4. We would report progress at the next AGC. Annual Audit Opinion We expect to have undertaken sufficient work by year-end to provide an annual audit opinion.

HFEA Health Group Internal Audit Update Group Reviews Where we undertake reviews that impact on the operations or activities of all members of the Health Group Audit Service, we intend to share good practice and lessons across the group e.g. Information Governance. We are currently discussing with ALB Heads of Internal Audit the possibility of undertaking group reviews based on common themes. Work is on-going at the moment and when a draft group plan is developed this would be shared with the HFEA AGC. HGIA Assurance and Governance Event – 30 th January 2014 Audit Committee members as well as Finance/Governance Directors are invited HIA/NAO Meetings HGIA and NAO have in place scheduled meetings. Issues discussed cover NAO upcoming reviews (both inspections and financial audit work) as well as our planned work. Areas of focus in the future would be work done across the group. HMT/Cabinet Office We are providing HMT/Cabinet Office regular updates and KPI’s on our performance. HMT has also been directing HGIA/other central government internal audit groups to undertake specific work e.g. Review of Departmental Quarterly Data Submissions. So far requests have not extended to ALBs.

11 December 2013 Debra Bloor Head of Inspection Compliance and Information Risks

Managing sector risks Compliance activities Risk based assessment tool (RBAT) Information and intelligence Risk Management

Compliance activities Inspection Post inspection monitoring Incident investigation Compliance and enforcement

Risk based assessment tool Success rates Multiple birth rates Donor registration Payment of fees

Information and intelligence Communicating and sharing with CQC MHRA HTA UKAS Professional bodies Patients

Mark Bennett Director of Finance & Facilities Fraud, Whistleblowing - 6 month update

Fraud & Whistleblowing Fraud – no reports of instances Fraud - scope / opportunity summary:  Payroll – limited, oversight of finance & HR, segregation maintained  T&S – approvals and payment approval involve several senior officers; culture of scrutiny and challenge exists  Contracts & Suppliers – all main suppliers now GPS / CQC / DH framework; WAP system enforces procurement order and goods/services receipting prior to payment  Assets – safe for cash and cheque-book; no assets identified as lost in recent fixed assets review; policy of replacing equipment for staff until frequency reaches ‘careless’ threshold (one member of staff thus warned) Whistleblowing session for staff due in October, now delayed until January 2014 Ownership of Whistleblowing policy and process to be determined as part of change to new shared services directorate

11 December 2013 Sam Hartley Head of Governance and Licensing Audit and Governance Committee Governance, Effectiveness and Standing Orders review – scoping

Background Governance project – formally closed November 2013 – transition to business-as-usual Annual review of committee effectiveness – Head of Governance and Licensing (HoGL) collating results to analyse Standing Orders (SOs) – set out rules and regulations by which Authority runs and governs itself – reviewed annually Internal Auditors’ (IA) review of governance running in parallel

Objectives Sense-check revisions made during governance review – are they working? Could they work better? Consider delegated powers and their appropriateness – e.g. for administrative licensing changes Committee/executive relationship – what works well and what could be improved? Revision of SOs – to reflect any governance/delegation changes but also to tidy up/make consistent

Timeline October 2013 – December 2013: Governance review scoped; Committee reviews carried out; Initial meetings between IAs and HoGL, committee chairs, other key members/staff January 2014 – February 2014: HoGL collating committee review findings and considering changes to delegated powers with lawyers/members where appropriate; IA conducting review of governance in parallel with HoGL work March 2014: Conclusion of review and revised SOs put to Authority for agreement