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Post Office Limited: HMG division of responsibilities
The relationships between POL, BEIS and UKGI are set out in the [draft] framework document. BEIS
is responsible for POL’s overall strategy and performance, with the BEIS Secretary of State POL’s
Shareholder and the BEIS Permanent Secretary the Principle Accounting Officer. BEIS has a strong
and positive relationship in with UKGI in achieving this that makes use of their expertise in corporate
governance and corporate finance. This document sets out which part of HMG, including the
different BEIS teams, leads on what, while recognising that nearly all matters will require co-
operation and consultation across teams.
POL have two primary points of contact with government: the BEIS Post Office Policy team as the
overall lead on Post Office matters and UKGI Post Office Shareholder Team, as the Shareholder
Representative. BEIS finance and Partnerships teams primarily provide support to these teams,
rather than dealing directly with POL. In brief,; BEIS leads on Government’s long-term approach to
POL and ensuring that POL’s activity is consistent with government policy and UKGI leads on the
organisational performance of POL in response to that strategic position.
Responsibilities
BEIS Post Office Policy Team is the policy sponsor, and has the goal of delivering Government's
strategic ambition for POL. The Policy team is also responsible for advising Ministers and the
Permanent Secretary on live issues, working closely with UKGI and working with other Government
Departments to identify strategic opportunities to support the delivery of POL’s social purpose
and/or Government services. The BEIS Post Office Policy team leads on:
e Working with Ministers, and across Government and external stakeholders to develop
HMG’s long-term ambition for the Post Office to be a valuable institution, and sustainable at
the national and local levels, via a stable network;
e Setting the overall clear and credible policy direction for POL, including delivering on POL’s
social purpose, and working with POL to reflect this in their long-term planning;
* Working with UKGI and POL to ensure that POL’s strategy is aligned with Government's
strategic position.
e Advising and supporting ministers and working with UKGI and POL in relation to policy issues
(e.g. financial inclusion and banking facility, Postmasters pay and key engagement with
stakeholders including the National Federation of Sub Postmasters, the management of
closure/temporary closure of Post Offices)
e Work with UKGI and POL on developing all new funding cases, and ensure these are aligned
to strategic priorities and represent value for money
e Facilitating POL’s access to government and acting as a champion for POL’s role in the
delivery of Government services and objectives. This includes representing POL’s policy
interests across Government (e.g. HMRC tax changes);
e Working across Government advocating the Post Office’s on-going role in delivering a social
purpose and access to services needed by citizens in their local community — in line with
national procurement rules.
e Ensuring that POL’s activity is consistent with government policy, for example, delivering
value for money, and responding to wider Government policy reviews (e.g. Access to Cash,
Taylor)
© Providing timely content for briefing, debates and correspondence in relation to Post Office
policy issues;
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Leading Government's input and response to relevant Select Committee reviews on the Post
Office and contributing to related reviews.
Relationship management of, and engagement with external stakeholders e.g. NSFP, CWU,
ACS, Plunkett Foundation and RSA.
Through the Director, be the Budget Holder for all funding provided to the Post Office,
ensuring that cases support value for money for the taxpayer, and releasing allocated
funding to POL payments have the appropriate due diligence, following advice from UKGI;
UKGI (Post Office Shareholder Team) acts as the Shareholder Representative. It shall:
1.
9.
Work with the department and POL to establish and maintain appropriate corporate
governance documents and systems, ie up to date and fit for purpose governance
documents, including FWD, Articles of Association, board ToRs, chair letter etc. This will
include leading on POL’s proposed corporate restructuring.
Promote the strength of POL’s governance systems which support organisational
performance, by providing high level challenge to POL (and its board), and advising ministers
and BEIS, on:
a. compliance with its governance framework (as set out in its Framework Document,
delegated authorities, and any other specified governance documents), and
b. the adequacy and strength of POL’s reporting to the department on these issues.
Assess and challenge POL’s Strategic and Business Plans from an owner's perspective,
advising the BEIS policy team and ministers on the clarity of the objectives, the quality of the
Plans and the financial, and where relevant commercial, strength underpinning it.
Provide constructive challenge on major operational and business strategy decisions, such
as commercial negotiations, transactions and other major projects.
Monitor and challenge POL as to its performance against its Plans and advising BEIS policy
team, Permanent Secretary and ministers accordingly, in terms of
a. Financial performance, including reviewing the Annual Report and Accounts
b. Investment programme
c. Network performance, including the Network Report
d. Reviewing requests for funding in accordance with the Funding Agreement
Challenge POL Business Cases outside POL’s executive delegations, through our NED
position on the POL board. Provide advice to the department and ministers on HMG.
approvals outside POL’s executive delegations, working closely with I
policy’
Advise ministers and the BEIS policy team, representing views on the POL Litigation Sub-
committee and engaging other OGDs, in relation to the Horizon litigation case and other
legal issues
Promote and advise the department on the effectiveness of POL’s leadership, specifically
through:
a. promoting a high quality and diverse board, challenging the board’s capability and
effectiveness, and monitoring succession planning
b. advising the department and ministers on and implementing effective board
composition, recruitment, remuneration and appointment processes
acting as the shareholder non-executive director on the POL board
d. giving a view on the POL’s board level executive capability in relation to its
responsibilities, and remuneration
Act as Government shareholder representative on the POL board, through:
a. providing an appropriately skilled board member to carry out the non-executive
director role effectively, drawing on the support and analysis from the UKGI
shareholder team
b. acting as an interlocutor between the department and the POL board
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c. attending board committees as appropriate (Remuneration Committee, the Audit
and Risk Committee and GLO Committee)
d. provide a view to the department on the strength of the ALB board
10. Provide timely content for briefing and correspondence requests on key operational, legal
and corporate governance issues
11. Day to day administration of the £950m Working Capital Facility (noting the intention to
transfer this to BEIS finance when resource is available)
BEIS Partnerships Team will lead on:
Providing support to UKGI and BEIS policy on corporate governance issues, including transfer
of learning from other partner organisations
Reviewing and advising on remuneration cases that are prepared by UKGI for the SCS
Remuneration Panel
Supporting UKGI on the board appointments process
Keeping BEIS policy and UKGI informed on relevant central initiatives including those from
Cabinet Office
BEIS Finance will lead on:
Providing BEIS approval for relevant loan facilities and individual drawdown of funds from
them
Negotiating overall POL spending envelope with HMT with base case support from the BEIS
and UKGI teams.
Reviewing POL’s financial performance for the purposes of Whole of Government Accounts
(WGA) - This is POLs responsibility, but BEIS finance will provide oversight
Understanding key risks from an Accounting Officer perspective relating to POL’s financial
processes and strength and/or future BEIS spending pressures