UKGI00045956
UKG100045956
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OFFICIAL - SENSITIVE
UKGI-BP-299a
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UKGI Dashboard
October 2018
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UK Government
Investments 1 104
UKG1I00045956
UKG100045956
1
OFFICIAL - SENSITIVE
UKGI Objectives
To prepare and execute all significant corporate asset sales by
the UK Government
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Act as shareholder for, and lead establishment of, UK
Government arm’s-length bodies, as required and in line with
HMTT priorities
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To advise on other major corporate finance matters, including all
3 major UK Government financial interventions into corporate
' structures and on major UK government corporate finance
negotiations.
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UK Government
Investments 2 105
OFFICIAL - SENSITIVE
Asset Sales (1/2)
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Priorities, quarterly objectives, risks and contextual factors
UKGI00045956
UKG100045956
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CE Project ke Resources Stakeholder Alignment: On Track: assessment Completed: Project
UK Government fu I UKGI role agreed [r I Secured: team, [a I on key objectives and (BB) of progress against GB concluded, including
Investments budget, etc. project plan plan close-out review
9%
OFFICIAL - SENSITIVE
Asset Sales (2/2)
Priorities, quarterly objectives, risks and contextual factors
UKGI00045956
UKG100045956
IRRELEVANT
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UK Government
Investments
GF Project ke Resources Stakeholder Alignment: On Track: assessment Completed: Project
DB vrei rote agreed (EY secured:team, (ZY onkey objectives and GJ of progress against EB concluded, including
budget, etc. project plan plan close-out review
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4 107
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Governance (1/7) =
I Asset I Priorities, quarterly objectives, risks and contextual factors I Assessment I t
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UKGI00045956
UKGI00045956
OFFICIAL - SENSITIVE
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Governance (2/7) -"
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I Asset I Priorities, quarterly objectives, risks and contextual factors II Assessment I Lead
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UKGI’s overarching objective: Shareholder oversight to ensure it delivers on its strategic objectives of (i) maintaining a I I I I [2 I 7
network of post offices above the 11,500 branches (ii) compliance with the minimum network access requirements and 2
delivery of Services of General Economic Interest, while (iii) operating as an increasingly profitable commercial business (©) © 9 (>) @ © A
aspiring to zero subsidy post 2021. 7
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Outlook — key issues/upcoming risks, including reputational: -
* POL faces civil litigation in relation to its ‘Horizon’ IT system — adverse judgement would pose reputational risks for b
UKGI. Trial begins 5 November 2018.
+ Major IT transformation programme has improved resilience. A major migration of back office systems has been ©
repeatedly delayed and costs have mounted from £20 to £37m, but extensive mitigation has taken place and the Tom '
organisation is confident of a successful migration in January 2019. S
+ Re-negotiation of third party contracts (Royal Mail and Bank of Ireland) are commercially critical for POL. s
+ Renegotiation of the terms of the Banking Framework, whereby POL provides basic cash banking services on behalf of fa
high street banks. We believe there is significant upside potential for POL. i
* Post Office needs to meet its network commitment and we are agreeing process for external validation of their service LJ
provision. "2
* Policy sponsorship role to BEIS will formally transfer to BEIS on 8 October 2018. =
* Agreeing a Framework Agreement with POL requires clarification from HMT on treatment of public corporations. “p
+ Ramping up of the DMB franchising programme may cause some negative stakeholder interest
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Quality of
Management
Team & Board
Company
Relationship
Departmental
Relationship
UK Government
Investments
Financial
Performance
Balance
Sheet & Risk
6 109
Governance (3/7)
OFFICIAL - SENSITIVE
Priorities, quarterly objectives, risks and contextual factors
UKGI00045956
UKG100045956
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UK Government
Investments
Company
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Quality of
Management [BJ
Team & Board
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Financial
Performance
Balance
Sheet & Risk
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UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Governance (4/7) =
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UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Governance (5/7) 2
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I Asset I Priorities, quarterly objectives, risks and contextual factors I Assessment I .
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Quality of
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Relationship = Team & Board Relationship Performance Sheet & Risk
Investments
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Governance (6/7) 2
I Asset I Priorities, quarterly objectives, risks and contextual factors
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Investments Relationship Tear aboard Performance Sheet & Risk 10 13
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Governance (7/7) =
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OFFICIAL - SENSITIVE
Governance — Board Director
Please answer the following questions:
- What is UKGI’s agreed role/purpose on the board?
- What are the key corporate governance/corporate finance skills required, if any, to fulfil the directorship role?
- What is the time commitment required?
- What is the development opportunity for the Director?
- What are the risks to UKGI of the directorship, if any?
- What are the priority contributions UKGI should deliver? Is this something UKGI should re-consider its involvement in?
Appointed
date
UKGI00045956
UKG100045956
UK Government
Investments
12 115
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Advice (1/3) =
Priorities, quarterly objectives, risks and contextual factors
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GE Project ke Resources Stakeholder Alignment: On Track: assessment Completed: Project
UK Government CB urctrote agreed GI Secured team, EJontey objecives and (GQ orprogress gant QQ) concludes, incucing
Investments budget, ete. project plan plan close-out review 13 116
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Advice (2/3) 2
Asset I Priorities, quarterly objectives, risks and contextual factors I Assessment I tad I -
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UK Government CE Project key’ Resources Stakeholder Alignment: On Track: assessment Completed: Project
Investments Gu UKGI role agreed B« Secured: team, [a I on key objectives and of progress against concluded, including 14 117
budget, etc. project plan plan close-out review
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Advice (3/3) =
Priorities, quarterly objectives, risks and contextual factors
“or
1
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IRRELEVANT
1 I -or
bz
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UK Government CE Project key Resources Stakeholder Alignment: On Track: assessment Completed: Project
Investments UKGI role agreed [I Secured: team, [a I on key objectives and of progress against concluded, including 15 8
budget, etc. project plan plan close-out review
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Advice other - 1/3 +
Please answer the following questions:
- What is UKGI’s agreed role/purpose? S
- What are the key corporate governance/corporate finance skills required, if any, to fulfil the role? :
- What is the time commitment required? x
- What is the development opportunity for UKGI?
- What are the risks to UKGI, if any?
- What are the priority contributions UKGI should deliver? Is this something UKGI should re-consider its involvement in? S
Department Appointed
late
=
UK Government
Investments 16 119
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Advice other - 2/3 +
Please answer the following questions:
- What is UKGI’s agreed role/purpose? S
- What are the key corporate governance/corporate finance skills required, if any, to fulfil the role? :
- What is the time commitment required? x
- What is the development opportunity for UKGI?
~ What are the risks to UKGI, if any?
- What are the priority contributions UKGI should deliver? Is this something UKGI should re-consider its involvement in? S
5
-
UK Government
Investments 17 120
UKGI00045956
UKG100045956
OFFICIAL - SENSITIVE
Advice other - 3/3 5
Please answer the following questions:
- What is UKGI’s agreed role/purpose? =
- What are the key corporate governance/corporate finance skills required, if any, to fulfil the role? :
- What is the time commitment required?
= What is the development opportunity for UKGI?
- What are the risks to UKGI, if any?
- What are the priority contributions UKGI should deliver? Is this something UKGI should re-consider its involvement in? =
IRRELEVANT
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UK Government
Investments 18 121
UKGI00045956
UKGI00045956
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Start / end date: Mlustrative scoring guidance:
The start date Green: ShEx role agreed with Check box to be ticked é&
should be the documented sign-off when the project has a
date on which Green / Amber: Role agreed but concluded, including ix
ShEx began some doubt around sign-off (e.g. Illustrative scoring guidance: completing a project 7
working on the note from Board / Minister / key Green: Allrequired resources (ShEX IMlustrative scoring guidance close-out review with 5
project. stakeholder unclear) team, budget, OGD support, Green: All key stakeholders aligned llustrative scoring guidance: assessment against :
The end date Amber: Role agreed but no written external advisers, etc.) identified behind agreed project objectives and Green: Project is on track to deliver Initial objectives and 7
should be the approval and committed plan (including timeline) agreed objectives in line with agreed lessons learned a
target Red / Amber: ShEx working on the Green JAmber: Ad requled! Green Amber: Stakeholders aligned project plan / timeline and to budget
completion date project without explicit approval or resources identified and some, but behind agreed project objectives and Green Amber: Project is currently s
and may move position unclear not all, committed close to reaching alignment on plan running to plan and on budget but there
over the life of Red: ShEx role not agreed ‘Amber: Some, but not all, Amber: Stakeholder alignment behind Is material risk to one of these B
the project. resources identified and committed key objectives or project plan but not Amber: Project is off track and likely La
prererinenerarter both / not al stakeholders tlther tobe delvered late or over =
and agree required resources Red Amber: Some initial discussion / budget ©
TRaenG ba mo esobeces progress on agreeing objectives but Key I I Red Amber: Projects of track, -
potted stakeholder alignment on both expected to deliver late and over 8
fed: Required resourcesyettobe I [I oblecivesand pian yet to be achieved budget but ls stil expected to deliver
Identified or committed to project Red: No stakeholder alignment on either Red: Project is off track, expected to be i
key projec oblectives or pia, key late, over budget ands at risk of not :
stakeholders may notallbe identtied / I I delivering at all vf.
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UK Government
Investments 19 120