HMRC Departmental Board - Notes of meeting, 13 August 2007
Attending:
Paul Gray, Stuart Cruickshank, Bill Griffiths, Mike Hanson, David Hogg, Chris Hopson, Steve Lamey, John Spence, Kate Owen, Mark Haysom, Penny Melville-Brown, Ann Chinner, Adam McMordie (Secretary), David McLean
Invitees:
Sara Woollard
Capability Review Observers:
Adam Pemberton, James McClintock
Apologies:
Dave Hartnett, Mike Eland, Bernadette Kenny, Kate Dunlop
Key points of discussion
1. Matters Arising
Minutes of 11th June were agreed and the Board reviewed action points.
Paul Gray asked the members of the Board for input into proposed tax credit measures and targets that he intends to prepare prior to the Public Accounts Committee on 10th October.
Paul Gray and Bill Griffith updated the Board on discussions around the role of the Board and Non-Executive Directors in the new governance structure. Their primary functions are supportive challenge, oversight and assurance. To help implement this, the Board should have a more systematic input into performance and a more sophisticated analysis of risk.
The Board noted the Departmental Accounts were signed on schedule.
2. HMRC Update
The new ministerial team is led by Alistair Darling as the Chancellor. The HMRC Minister is Jane Kennedy who is the Financial Secretary to the Treasury (FST). Ministers are keen to understanding the Department’s delivery capacity during the CSR period. There is a need to find a balance between change and target delivery that reflects departmental and ministerial priorities while setting CSR targets.
Following the Prime Minister’s announcement about the creation of a single border agency HMRC staff will be involved in the first visible phase of cross-government co-ordination by September. Fuller long term proposals about the structure of the agency are expected in October. HMRC is involved in the review and is working to ensure that there is sufficient focus on goods and taxes as well as people.
The Department has generally received a positive response to its reaction to flooding and foot and mouth and the actions taken to support customers.
3. Financial and Performance Review
Stuart Cruickshank reviewed finance and performance with the Board and discussed the financial risks and opportunities currently facing the Department. The new process for identifying risks and opportunities currently focuses on inputs, going forward this will expand to consider outputs.
The Board considered the Department’s performance against PSAs targets, including the need to develop a more sophisticated set of measures and a ‘RAG’ system for the DSOs. The non-delivery of existing PSAs would impact on the department’s capacity for change, as continued improvements in performance will be required into the CSR period. The Board recommended that ExCom ensures it has a full understanding of the RAG status of the PSAs, in particular those with Amber and Red status, and considers short and longer term impacts on the customer for non-delivery.
The Board also felt that there must be an attempt to measure the impact of the change programme on delivery, most notably the Work Force Change programme. Generally the Department has improved its assessments of performance; the Board recognised that the support should be provided for the Cross Cutting Performance Committee, which is the primary body looking at in year performance.
Mike Hanson explained the implications of the recent interpretation of Section 18 of the Tax Credits legislation. A significant number of cases will have to be re-opened which will have resource implications, affecting other areas in Processing. Work is required to ensure that customer perceptions are not unduly impacted.
4. Capability
Chris Hopson briefly outlined the purposes of the new Change and Capability function, distinguishing it from the Departmental Transformation Programme through its involvement in the Strategic Framework and broader changes across all parts of the Department. The Board discussed the Strategic Framework and the Capability review.
The Strategic Framework
The strategic framework bridges the gap between the high level Departmental Ambition and directorate level planning. The Framework components are owned by ExCom members and sit across the organisational structures. The Board agreed that there needs to be alignment between the Framework and the committee structure, but highlighted the need to not lose sight of issues such as corporate responsibility which are not currently included in the Framework. There is a misalignment in timing between setting DSOs and strategic prioritisation, but options for flexibility in DSOs targets are being explored. There is a need to have clear and consistent links between the DSOs, Internal Departmental Targets, and the Framework, and all of these need to be hardwired into business as usual and the transformation programme. The Board also recognised the need for proper staff engagement.
Capability Review
Sara Woollard ran through the timeline and key aspects of the Capability review, and the role the Board should anticipate playing. The Board reviewed HMRC’s proposal for the Key Lines of Enquiry (KLoE) that would be proposed as part of the self-assessment exercise. HMRC would be keen to have a review which found a balance between structures, processes and behaviours so that the outcomes can be seen in the wider content of Departmental transformation. As such, the strategic framework and management capability in the context of change should be considerd as KLoEs. The Board also considered customers and systems and process as candidates for KLoEs. Clarity of concept around the future challenges facing HMRC is essential to ensure applicability of the capability being created. The Board agreed to comment on the first draft of the self-assessment in correspondence prior to Executive Committee sign off in early September.
5. AOB
Paul Gray suggested topics for upcoming Board meetings. The committee broadly agreed to discuss frontiers in October, risk in December, and finance and planning in February. The Board agreed to return to strategic planning and the review of the committee before the end of the year.
Action points
AP1: Paul Gray, prior to PAC meeting on 10th October: circulate note for comment to Departmental Board on Tax Credit measures.
AP2: Stuart Cruickshank, October Board meeting: provide more detailed review of PSA1 in the Finance and Performance session.
AP3: Mike Hanson: circulate results of staff survey to the Board.
AP4: Secretariat: circulate capability review dates and 2008 Board dates.
AP5: Sara Woollard, late August: circulate first draft of self-assessment to Board members for comment.
