BEIS accounting officer system statement 2020
Source: data.gov.uk (2020-10-06)

BEIS annual reports and accounts. This series brings together the annual reports and accounts for the Department for Business, Energy and Industrial Strategy (BEIS).
The reports review the department’s activities over the course of each year, providing:
highlights of key projects
progress made in meeting the department’s objectives
financial information

September 2020 
Accounting Officer System 
Statement 2020 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
© Crown copyright 2020 
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. 
To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the 
Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: 
xxx@xxx.xx.  
Where we have identified any third-party copyright information you will need to obtain permission from the 
copyright holders concerned. 
Any enquiries regarding this publication should be sent to us at:  
xxx@xxx.xx 

BEIS Accounting Officer System Statement 2020 
3 
Contents 
1. 
Scope of the system _____________________________________________________ 1 
Principal Accounting Officer’s statement _______________________________________ 2 
2. 
Accountability and governance _____________________________________________ 5 
Departmental governance structure ___________________________________________ 6 
Risk management _________________________________________________________ 7 
Project management_______________________________________________________ 7 
Audit and assurance _______________________________________________________ 8 
Relationships with other government departments ________________________________ 9 
3. 
Relationships with BEIS partner organisations and wider network _________________ 11 
4. 
The distribution of funding ________________________________________________ 15 
Local funding arrangements ________________________________________________ 16 
Grants to private and voluntary sector bodies __________________________________ 16 
Major contracts and outsourced services ______________________________________ 17 
ANNEX A – Alphabetical list of BEIS partner organisations and wider network ___________ 19 
 
 

BEIS Accounting Officer System Statement 2020 
1 
1. Scope of the system 
1.1. This Accounting Officer System Statement replaces the version previously published 
in July 2018. In line with HM Treasury guidance and best practice this statement has 
been revised to reflect administrative classification changes to our network of bodies.  
1.2. The Department for Business, Energy and Industrial Strategy (BEIS) was created by 
the Prime Minister on 14 July 2016. Our purpose is to build an economy which is 
fairer, cleaner, more innovative, and attracts investment from all over the world. On 
14 June 2020 BEIS launched our new Mission and Priorities. Our mission is: leading 
Britain's recovery 
Our priorities are: 
• Fighting coronavirus- We will support a safe return to work, restoring livelihoods 
and rebuilding consumer confidence. We will help businesses to bounce back, 
putting in place a future programme of support for business and workers, as well as 
more targeted support to deliver a job rich recovery that contributes to delivering net 
zero. In addition, we will protect lives by significantly and rapidly increasing 
domestic vaccines research capability and capacity for production, through the work 
of the Vaccine Taskforce. 
• Backing business- We will increase opportunity by levelling up economic activity 
across all parts of the UK, supporting SMEs and helping business create jobs. We 
will take steps to remove regulatory barriers and promote regulations that 
supercharge growth and investment. Through reform measures we will regain 
public trust in the audit, governance and insolvency regimes. As the transition 
period draws to a close, we will seize the opportunities of global free trade and play 
an important part in negotiations on the EU and Rest of World Free Trade 
Agreements. 
• Unleashing innovation- We will make the UK a science superpower by backing 
ideas, eliminating bureaucracy and supporting talent from home and abroad. We 
will translate our biggest increase in R&D spend into world-beating innovation, 
catalysing private sector investment to promote the development of cutting-edge 
technology. We will put UK research funding on a firm footing after EU Exit, laying 
the groundwork for the establishment of a ‘high risk, high payoff’ new UK agency for 
research, due to open in 2021. 
• Tackling climate change- We will drive the green recovery by setting out 
measures to decarbonise transport, buildings, energy and industry; deploy carbon 
capture, usage and storage at scale; and significantly increase offshore wind 
capacity. We will lay the groundwork for establishing a Gigafactory to manufacture 

BEIS Accounting Officer System Statement 2020 
2 
electric car batteries in the UK within the next three years. In preparation to host a 
successful COP26 in November 2021, we will push for countries to renew their 
climate change to accelerate urgent climate action to protect our planet. 
1.3. The Secretary of State for the Department for Business, Energy and Industrial 
Strategy and other departmental ministers have a duty to Parliament to account, and 
be held to account, for the policies, decisions and actions of this Department and its 
partner organisations and wider network bodies1. Nothing in this document is 
intended to be, nor should be interpreted as, inconsistent with this constitutional 
principle of Parliament holding the executive to account. Instead this document is 
intended to explain how this principle of accountability is exercised in practice 
through the operational landscape of BEIS. 
Principal Accounting Officer’s statement 
1.4. As Permanent Secretary, I am appointed by HM Treasury as the Principal Accounting 
Officer for the Department. I am personally responsible for safeguarding all public 
funds which fall under the auspices of the Department and its ‘Trust Statement’:  
• The Department’s Supply Estimates 
• Receipts from the Energy Savings Opportunity Scheme  
• Receipts from the EU Emissions Trading Scheme 
• Receipts from the Carbon Reduction Commitment 
• Receipts from the Climate Change Agreements Scheme 
1.5. This Accounting Officer System Statement sets out all of the accountability 
relationships and processes within my Department, making clear who is accountable 
for what at all levels of the system, including where I have appointed additional 
Accounting Officers, who will have in place their own systems of accountability.  
1.6. It covers my core Department, its partner organisations and wider network bodies. It 
describes accountability for all expenditure of public money through my Department’s 
Supply Estimate, all public money raised as income, and the management of 
shareholdings, financial investments, and other publicly owned assets for which I am 
responsible. It helps me ensure that I am fulfilling my responsibilities as an 
 
1 BEIS “partner organisations” are public bodies whose policies are usually overseen by BEIS ministers and 
with whom we have a direct and close sponsorship relationship. BEIS non-ministerial departments and 
Public Corporations are also partner organisations. Other bodies within the BEIS network are referred to as 
the BEIS wider network bodies. Examples of “wider network bodies” include partner organisation 
subsidiaries. A list of partner organisations is shown in Annex A . 

BEIS Accounting Officer System Statement 2020 
3 
Accounting Officer, in accordance with HM Treasury guidance as set out in 
‘Managing Public Money’, particularly Chapter 3. 
1.7. The Secretary of State for BEIS and other departmental ministers look to me as the 
Department’s Principal Accounting Officer to delegate within the Department and our 
partner organisations (and wider network bodies, where appropriate) to deliver their 
decisions and to support them in making policy decisions and handling public funds. 
This is a role that involves personal responsibility and accountability on my part. 
1.8. Parliament is rightly concerned to know not only where public money is spent but 
who is accountable for it at all levels of the system from the Principal Accounting 
Officer down. In large government departments this is not always obvious, so this 
system statement is an attempt to clarify that position for BEIS. At the risk of over-
simplifying, the answer on accountability depends primarily on whether public money 
is being spent directly by the Department or through one of its network bodies. 
1.9. Within the core Department the line of accountability follows a traditional 
management cascade of authority from me, as Permanent Secretary, to Directors- 
General and the Chief Financial Officer and then onwards through directors and 
deputy directors as appropriate. Special arrangements exist under the so-called 
‘Osmotherly Rules’ for Senior Responsible Owners of major projects to account 
directly to Parliament. However, in general, whilst I may delegate responsibility within 
the Department, primary accountability for the use of public money rests with me.  
1.10. BEIS has a large and diverse range of partner organisations and wider network 
bodies. Some have been created specifically by Acts of Parliament, often with 
statutory provisions as to the degree of independence from government and 
operational autonomy. Some are simply administrative forms of separation from the 
core Department, created in the interests of organisational focus, specialisation, or 
administrative efficiency.  
1.11. Unless providing a purely advisory function, each BEIS partner organisation has a 
board or executive responsible for the proper operation of that entity. The permanent 
heads of these organisations will normally be appointed by me as a delegated 
accounting officer with responsibility for stewardship of that organisation’s resources. 
This is the primary tier of accountability for the use of public money in these 
organisations. However, in most cases, I remain ultimately responsible to Parliament 
for the use of resources allocated to BEIS even if these are administered through 
partner organisations. 
1.12. There are also rare cases where a partner organisation (e.g. non-ministerial 
departments) has a separate Supply Estimate from Parliament in which case that 
accounting officer is solely accountable for use of those funds. However, these are 
the exception rather than the rule.  

BEIS Accounting Officer System Statement 2020 
4 
1.13. This statement describes the accountability and governance systems which are in 
place at the date of this statement and which will continue to apply until a revised 
statement is published. This statement seeks to explain the system accountability 
arrangements in a comprehensive and simple manner, so we would welcome any 
feedback on whether its usefulness for readers could be improved. Please send any 
suggestions to xxx@xxx.xx.  
 
Sarah Munby  
Permanent Secretary and Principal Accounting Officer 
Department for Business, Energy, and Industrial Strategy 

Document title goes here 
5 
2. Accountability and governance 
2.1. BEIS accountability is provided through clear, evidence-based business planning, 
supported by strong governance, performance management and risk processes. This is 
reinforced through assurance provided through internal and external audit. 
2.2. BEIS directors general, directors and accounting officers of BEIS’ partner organisations 
(and onwards as appropriate) have the delegated authority to commit resources within 
predefined limits, together with the responsibility for proper stewardship of these 
resources and compliance with the requirements of HM Treasury’s ‘Managing Public 
Money’. Accountability is formalised through letters of delegated authority at the start of 
the financial year. Individuals with delegated accountability are ultimately accountable to 
the Permanent Secretary for ensuring that they deliver the departmental priorities within 
these delegations. 
2.3. The Permanent Secretary and/or the Secretary of State confirms the appointment of the 
chief executive officers (CEOs) of the Department’s partner organisations. Normally the 
Permanent Secretary, as Principal Accounting Officer, appoints the CEOs as accounting 
officers for the organisations they lead. (There are some exceptions where accounting 
officers are appointed directly by HM Treasury.) 
2.4. Delivery plans for BEIS’ vision and objectives are established through annual business 
planning processes which set out the actions, success measures and resource 
allocations against the departmental strategic objectives. It is supported by plans for each 
of the directorates and partner organisations and, in turn, by more detailed delivery plans 
for the Department’s portfolio of significant programmes and projects. Directors, CEOs, 
and programme/project senior responsible owners (SROs) report on their delivery 
through the performance monitoring framework, and report on maintaining forecasted 
financial positions within budget limits. Where relevant, they are responsible for ensuring 
that their activities have been through an internal assurance process and/or the 
Government Major Projects Portfolio (GMPP) gateway processes. 
2.5. Delivery Plans set out the BEIS objectives and plans to achieve them.  This establishes 
an internal accountability framework, based on policy milestones and indicators, and 
enables on-going monitoring of policy delivery. Management information on the progress 
against the Delivery Plans and budgets is collated monthly and discussed alongside 
significant risks or issues. This is examined through BEIS executive committees and the 
Departmental Board. 
2.6. For each partner organisation, as well as the regular financial and delivery reporting 
through BEIS’ performance monitoring framework, there will be an ongoing relationship 
with the Department. Our relationship is based on a sponsorship model  set up to help us 
engage with partner organisations in a consistent and coordinated way, and to strengthen 
our relationship with them as part of our wider transformation programme. The 
relationship with individual partner organisations is owned by named policy and 

Document title goes here 
6 
governance sponsors within BEIS to lead on discussions of both relevant policy 
development and governance of the partner organisation. Interaction with the wider 
Department, either at a day-to-day administrative level with finance teams or strategically 
with senior management and minsters, is driven according to need and the level of risk to 
which the partner organisation and Department is exposed. 
Departmental governance structure 
2.7. One of the policy responsibilities of BEIS is corporate responsibility and raising the 
standards of corporate governance. We have sought to be at the forefront for standards 
and diversity in the way that we have designed and implemented governance. Further 
details of BEIS governance structure, board and committees can be found in the ‘Annual 
Reports and Accounts’ governance statement. 
 

Document title goes here 
7 
Risk management 
2.8. The departmental risk framework sets out the processes and procedures to manage and 
de-escalate/escalate risks at all levels.  Key risks from across BEIS are reported by 
directorate each month.  The Department also requires each major programme to define 
its overall risk appetite and all individual risks are required to have target reduction levels 
to reflect the level of exposure that can be tolerated. Risks registers are maintained at 
departmental, group and directorate level, enabling risks to be actively considered and 
managed. 
2.9. The intelligence from BEIS' risk reporting informs the performance and risk report 
covering departmental performance, financial and resource management and the 
departmental level risks. This report is discussed monthly at Performance and Risk 
Committee (P&R) and Executive Committee (ExCo), which is integral to the governance 
of the Department. Key changes to the risks, including any new, escalated, or de-
escalated risks, are reviewed by the P&R Committee, who inform ExCo of any significant 
changes. 
2.10. The Department’s approach is to make a distinction between strategic and operational 
risks. The Executive Committee, P&R Committee and the Departmental Board drive the 
identification of high-level strategic risks that are directly aligned to departmental 
objectives as formulated through Ministerial priorities and Delivery Plans. Underneath the 
strategic risks sit operational risks relating to the Department’s objectives, which are 
managed by Directors General as part of their Group risk registers, or directors or SROs 
on directorate, programme, or project risk registers.  This enables risks to be managed 
effectively and escalated to the right board or committee when it appears, they are 
outside tolerance. This structure aligns with the departments delegated authority 
approach. 
Project management 
2.11. All projects across BEIS and its partner organisations are required to obtain formal sign-
off at pertinent points of their lifecycle, from initial mandate through to closure, using the 
HMT Green Book Strategic, Outline and Final business case model to document the 
approval sought. Guiding this is the principle that the processes involved are 
proportionate to the value and risk profile of the project.  
• Projects below the delegation level of the relevant partner organisation or director 
general can be authorised by the director general or the partner organisation and 
would be monitored at the group or partner organisation level on either a monthly or 
quarterly basis, as appropriate. 
• Projects that are novel, contentious or repercussive and those above delegation 
limits are required to obtain approval through BEIS’ Projects and Investments 

Document title goes here 
8 
Committee (PIC) and would be included on the Departmental Portfolio, which is 
monitored on a monthly basis at Departmental level. 
• Projects on the Departmental Portfolio, and potentially those at group level, also 
undergo independent assurance in line with the Departmental Integrated Assurance 
and Approvals Strategy, with BEIS Portfolio Office organising independently run 
gateway reviews or health checks at key lifecycle stages and decision points. 
2.12. Additionally, projects £70m and above are usually subject to HM Treasury approval. They 
may also be subject to review by the Infrastructure and Projects Authority (IPA), and may 
enter the Government Major Projects Portfolio (GMPP) for ongoing IPA monitoring and 
assurance.  
Audit and assurance  
2.13. Audit and assurance arrangements support the Accounting Officer and Board’s delivery 
and accountability requirements, providing evidence-based assurance on the 
management of risks that threaten the successful achievement of BEIS’ objectives. 
2.14. BEIS operates an assurance framework with three lines of defence: operational 
management2, internal governance3 and independent assurance4. This ensures there are 
sources of assurance on governance, risk management and control processes across the 
Department. 
2.15. An annual governance statement is included within the ‘Annual Report and Accounts’. 
This sets out the governance, risk management and internal control arrangements for the 
Department. Evidence is provided throughout the statement on how governance has 
been aligned with departmental vision and objectives. This evidence includes assurances 
from the internal audit function, Controls and Assurance Tool result, and the governance 
statements from individual directors general within the Department. 
2.16. As part of the governance arrangements, BEIS and most of its partner organisations have 
established assurance bodies (e.g. Audit and Risk Assurance Committees, ARACs) 
which advise their management boards on governance, control and risk management. 
For those organisations with a more significant budget share and associated risks an 
internal audit function exists to provide independent assurance over the work of the 
organisation, with a representative of internal audit regularly attending meetings of the 
assurance board. This independent assurance provides a valuable link into the 
assurance needs of the Principal Accounting Officer. 
 
2 First line, or operational management, assurance comes direct from those responsible for delivering specific 
objectives or operation; it provides assurance that performance is monitored, risks identified and addressed, and 
that objectives are being achieved. 
3 Second line, or internal governance, assurance is separate from those responsible for delivery, but not 
independent of the organisation’s management chain. 
4 Third line, or independent, assurance focuses on the role of internal audit and other third-parties such as the 
Major Projects Authority. 

Document title goes here 
9 
2.17. The BEIS internal audit function is provided by the Government Internal Audit Agency 
(GIAA), a cross government service supporting BEIS and several of its partner 
organisations, which undertakes a programme of risk-based internal audits and advisory 
work to provide assurance to the Permanent Secretary, ARAC and the Departmental 
Board. GIAA’s position within government enables it to provide assurances that cut 
across traditional departmental boundaries and support the cross-cutting nature of the 
Department’s work. 
2.18. The Group Chief Internal Auditor provides ARAC with an annual report on the systems of 
governance, risk management and control operating in the Department based on the 
work undertaken during the year; the outcome of the annual review of corporate 
governance; knowledge of the business environment; known instances of fraud; and the 
work of others such as the National Audit Office (NAO), who provide the Department’s 
external audit function. 
2.19. NAO is responsible on behalf of Parliament for examining the economy, efficiency and 
effectiveness of the use of public money by BEIS. This is achieved primarily through the 
independent audit of BEIS’ annual financial statements and through its programme of 
value for money reviews. 
2.20. Further scrutiny and independent oversight is provided by House of Commons select 
committees. The BEIS Committee examines the administration, expenditure and policy of 
the Department and its associated public bodies. The Public Accounts Committee 
scrutinises value for money (the economy, efficiency, and effectiveness of public 
spending) and generally holds BEIS and its partner organisations to account for delivery. 
Relationships with other government departments 
2.21. BEIS ministers have lead policy responsibility for the work of three non-ministerial 
departments, all of which fall outside of the BEIS accounting boundary. These are: 
• Competition and Markets Authority 
• HM Land Registry 
• Office of Gas and Electricity Markets (Ofgem) 
2.22. These bodies have been established under statute to operate independently of BEIS. 
Their chief executive officers are appointed directly by HM Treasury as accounting 
officers with personal accountability to Parliament.  
2.23. Although independent from BEIS, members of these bodies’ boards are appointed by the 
Department through open competition in compliance with the ‘Governance Code on 
Public Appointments’ and in accordance with the legislation under which each was 
created. Further details can be found in their respective annual reports to Parliament. 

Document title goes here 
10 
UK Government Investments (UKGI)  
2.24. UKGI is a company wholly owned by HM Treasury whose staff are public servants. It is 
the government's centre of excellence in corporate finance and corporate governance. It 
provides independent advice to a range of Departments, relating to: 
• Governance: Act as shareholder for and lead the establishment of HMG Partner 
Organisations, to help these businesses optimise their performance to operate as 
commercially as possible 
• Asset Realisations: Prepare and execute all major asset sales by the government 
• Corporate Finance: Provide advice on major HMG financial interventions into corporate 
situations including distress and mergers & acquisitions 
2.25. UKGI works closely with BEIS on a number of high-profile one-off projects, and currently 
fulfils the department’s shareholder role for partner organisations including the Nuclear 
Decommissioning Authority, British Business Bank plc, Post Office Ltd, Ordnance Survey 
Ltd, HM Land Registry, National Nuclear Laboratory and Nuclear Liabilities Fund. 

Document title goes here 
11 
3. Relationships with BEIS partner 
organisations and wider network 
3.1. The BEIS group of partner organisations and wider network bodies is one of the largest 
and most diverse of any government department. The organisations vary considerably in 
size, type, and level of independence, and operate in a complex and often changing 
environment. These organisations are essential to the successful delivery of the 
Department’s objectives. 
3.2. The BEIS Permanent Secretary is Principal Accounting Officer and has, where relevant, 
delegated accounting officer responsibility under ‘Managing Public Money’ to the chief 
executive officer (or equivalent) of the organisation in question, or the Principal 
Accounting Officer retains accountability directly. The accounting officers of the three 
non-ministerial departments (listed in Section 2) are appointed by HM Treasury. 
3.3. All newly appointed accounting officers receive a letter from the Principal Accounting 
Officer confirming their appointment as accounting officer. This sets out their 
accountabilities and responsibilities. To support them in their role, on appointment, all 
accounting officers are recommended to attend the Civil Service Learning course, an 
‘Introduction to Accounting Officer Responsibilities’, which provides a thorough 
understanding of propriety and regularity issues, as they affect those in public service. In 
addition, newly appointed accounting officers can also discuss their roles and 
responsibilities further with the BEIS Chief Financial Officer.  
3.4. Each partner organisation is overseen by a sponsor team in the core Department which 
agrees and captures the organisation’s remit in a framework document. The sponsor also 
monitors and challenges performance and works with the partner organisation or wider 
network body to support its high-level aims. All partner organisations are established with 
governance arrangements that are appropriate to both their mission and legal form, and 
with processes for engagement with the Department that allow them to function and 
deliver with the appropriate balance of autonomy and accountability.  
3.5. BEIS worked closely with the Cabinet Office during the development of ‘Partnerships 
between Departments and Arm’s Length Bodies: Code of good practice’ and are 
committed to the principles of the Code. BEIS is working with its partner organisations to 
agree the Department’s approach to completing both functional and tailored reviews. 
• Functional reviews look across departments and examine the functions of several public 
bodies in similar or related areas of government, allowing consideration of opportunities 
for reform that cannot be revealed by reviewing bodies one by one.  
3.6. The BEIS group of partner organisations and wider network bodies crosses over many 
different classifications, with organisations found at various distances from ‘the centre’ 

Document title goes here 
12 
and, therefore, operating in a range of different ways appropriate to their statutory or 
administrative form. 
3.7. While these partner organisations and wider network bodies fall into a number of different 
classification groups, many share similar funding and monitoring arrangements. The 
following categories provide, as far as possible, an account of the broad arrangements in 
place: 
Central Government but not ALBs 
3.8. These bodies are classified to central government but are not administratively classified 
to either Non-ministerial departments, Executive Agencies or NDPBs.  
Executive agencies 
3.9. Executive agencies have an accounting officer responsible to Parliament. They are 
appointed by the Principal Accounting Officer, who receives assurance on the executive 
agency’s delivery through a sponsor team in the core Department, which monitors 
financial and performance data. Although autonomous of BEIS, with the chairman or chief 
executive officer having accountability for the operation and budget of the organisation, 
these bodies are supported through secretariat functions within BEIS. Each is supported 
by a sponsor team in the core Department which monitors financial and performance data 
Expert committees 
3.10. These are usually non-statutory groups, providing independent expert advice on key 
issues from within the department. Like many of the NDPBs that possess an advisory 
function, Expert Committees comprise of external (non-civil service) specialists that form 
committees to advise ministers on particular policy areas. However, they are not ALBs 
like NDPBs. They are funded from within a department budget, administrated and 
resourced by civil servants from within the department, and are not subject to the same 
levels of review or scrutiny that ALBs require. 
Joint ventures and associates 
3.11. A joint venture is a joint arrangement whereby the parties have that have joint control of 
the arrangement have rights to the net assets of the arrangement.  
An associate is an entity where the Department has “significant influence” but not control 
over the entity. The department recognises its investments into associates and joint 
ventures and these investments are managed through the lead sponsor teams, such as 
UKRI for The Francis Crick Institute. 

Document title goes here 
13 
Non-departmental public bodies 
3.12. These non-departmental public bodies (NDPBs) receive grant-in-aid from the core 
Department and may charge for their services. 
3.13. They vary significantly in size and scope, from organisations with thousands of 
employees and multi-billion pound budgets (e.g. the Nuclear Decommissioning Authority), 
to small organisations that receive minimal funding (e.g. the Committee on Radioactive 
Waste Management). Therefore, their sponsorship and engagement with BEIS and/or 
UKGI will also vary greatly; with BEIS directors general on their boards in some cases but 
minimal policy input in others.  
3.14. However, each NDPB has an independent board to oversee its delivery and provide 
assurance of financial probity and (with the exception of the Committee on Radioactive 
Waste Management) an accounting officer (normally the chief executive officer) who is 
formally responsible to Parliament for the funds allocated to them. This provides the 
primary tier of accountability for the organisation’s use of public funds. In addition, 
respective sponsor teams in the core Department monitor financial and performance 
data, engaging as necessary in matters relevant to the BEIS Principal Accounting Officer. 
Office of the Department 
3.15. These are distinct entities that form part of government departments. They are usually set 
up for a specific project or initiative, with dedicated teams with Departments. They do not 
have executive agency status (and do not have the governance structures or the 
operational autonomy of an executive agency). They are staffed by civil servants and 
work within the rules and processes of their relevant home department. 
Other (non-ALB) 
3.16. Other (non-Arm’s Length Bodies) are companies incorporated under the Companies Act 
by the department for specific purposes, such as Special purpose vehicles, holding 
companies for managing or holding investments on behalf of the government. The 
Accounting Officer gains assurance over the investments they hold through the directors 
of the companies being appointed as Accounting Officers (where necessary) and the 
management of the investments through Departmental budgets and budget holders with 
support from UKGI (in respects of certain investments). 
Other public bodies net yet administratively classified 
3.17. These are partner organisations of BEIS that have been classed to central government 
but have yet to be administratively classified by Cabinet Office. 

Document title goes here 
14 
Public Corporations 
3.18. Any public entity that is at least 50% funded through commercial activities will be 
classified by the ONS National Accounts system as a Public Corporation. These have 
substantial day to day operating independence so that it should be seen as an 
institutional unit separate from its parent department 
Statutory office holder 
3.19. A statutory office is a position established under legislation (in some instances by a 
prerogative Order in Council) and sometimes as a separate legal entity or corporation 
sole, with a specific remit to conduct activities or deliver services within the public sector 
but which is an individual and not an organisation. The statutory office is a position held 
by one person, the statutory office holder, though the office may be provided powers to 
request additional resources if required (these would usually be provided by a department 
or by Parliament) or to employ staff. They can be set up by a ministerial department or on 
Parliament’s behalf. 
 

Document title goes here 
15 
4. The distribution of funding 
4.1. As with other government departments, BEIS’ annual funding is agreed by Parliament. 
The Permanent Secretary (as Principal Accounting Officer) is accountable for ensuring 
that expenditure is in accordance with the requirements of regularity, propriety, value for 
money and feasibility (as set out in ‘Managing Public Money’). 
4.2. On an annual basis, the Appropriations Act (Main Estimates) provides the annual 
breakdown of the Department’s overall funding settlement. There is an opportunity to 
redistribute funds between control totals once a year through the Supplementary 
Estimate process, if agreed by HM Treasury.  
4.3. Allocation of resources to departmental priorities is decided by ministers, supported by 
advice from the Departmental Board and the Executive Committee (ExCo). Within the 
core Department the Principal Accounting Officer delegates to directors general and the 
Chief Financial Officer the authority to commit these resources in line with plans to 
achieve departmental objectives. Accountability is formalised through letters of 
delegation, onwards to directors and deputy directors as appropriate.  
4.4. Separate budget delegations are made to partner organisations as appropriate. 
Accountability is formalised through a letter of delegation, allocating budgets subject to 
certain controls, and outlining expectations and areas of responsibility and accountability. 
4.5. More information on the expenditure of the core Department and its consolidated bodies 
is provided in the ‘Annual Report and Accounts’. 
Monitoring expenditure 
4.6. The Department’s internal forecasting process ensures timely and robust reporting of 
under-spends and cost pressures. Forecasts are analysed and reported monthly to the 
Performance and Risk committee and to ExCo, as well as more detailed quarterly reviews 
led by the Chief Financial Officer. They provide the opportunity for scrutiny and challenge 
of financial forecasts, informing an agreed BEIS forecast position and recommendations 
to ExCo for intervention as necessary to protect the Department’s budgetary control 
totals. These reviews are an important part of the system that enables BEIS to make 
effective strategic funding decisions. 
4.7. Departmental forecasts are also reported to HM Treasury through its Online System for 
Central Accounting and Reporting (OSCAR) system, to assist with the taut management 
of public finances. This information feeds into the fiscal reporting to Parliament by HM 
Treasury. 

Document title goes here 
16 
Local funding arrangements  
4.8. For local authority services in which BEIS has a policy interest, central government 
funding is generally provided either through the Revenue Support Grant (from the local 
government budget) or through specific revenue grants (from the BEIS budget), although 
capital grants are also provided. 
4.9. The Ministry of Housing, Communities and Local Government’s Accounting Officer, as 
lead accounting officer across central government with respect to local government, 
provides the assurance that a core framework is in place that requires local authorities to 
act with regularity, propriety and value for money in the use of all of these resources. 
4.10. As well as the accountability provided through this framework, specific BEIS grants are 
often provided in recognition of a statutory obligation on local authorities to perform a 
function or provide a service. In such cases, arrangements are established in a way that 
allows local authorities the flexibility to respond to local priorities, pursue balanced 
outcomes and choose their own methods of achieving desired outcomes, whilst taking 
into account BEIS’ policy intentions and having regard to the principles of managing 
public money.  
Grants to private and voluntary sector bodies 
4.11. Most BEIS grants to private and voluntary sector bodies are allocated by those partner 
organisations that are responsible for taking individual decisions on which proposals 
should and should not receive grant support. About 75 per cent of applications are 
rejected in order to prioritise those proposals which best meet the policy criteria for grant 
support. The Department’s role is to fund the partner organisations in question (mainly 
UK Research and Innovation) through grant-in-aid and to oversee the overall funding 
framework under which grants are issued. A minority of grants are issued directly by the 
Department for purposes authorised by Parliament under the Estimates processes.  
4.12. All grants issued by both the Department and its partner organisations are intended to 
comply with the requirements set out in ‘Managing Public Money’ as regards propriety, 
regularity and value for money. The Department has worked closely with its grant-giving 
teams and partner organisations to help the Cabinet Office design a set of guiding 
principles for the administration of grants.  
4.13. An exceptional feature of grant-giving in BEIS right at the end of the financial year was 
the close partnership working BEIS adopted with the Department for Communities and 
Local Government to pay over £13 billion in support to eligible businesses affected by 
Covid-19. The Department will report more fully on these grants in the Annual report and 
accounts 2019-20 and 2020-21 once we have fully monitored their impact.   

Document title goes here 
17 
Major contracts and outsourced services  
Major contracts 
4.14. BEIS has robust processes in place for entering into major contracts. These have been 
assessed against the government commercial operating standards, which cover the 
lifecycle from identifying the need, through procurement and contracting to subsequent 
management. One of these standards requires that value for money be obtained and this 
is ensured in a number of ways: 
• Market engagement prior to large contracts ensures that the market is understood 
and requirements for goods and services that are fit for purpose can be set without 
attracting undue cost. 
• Procurement regulations require competitive procurement wherever possible. 
Depending on the requirement, this may be by use of a Crown Commercial Service 
or other framework that has been pre-competed or by undertaking an Official Journal 
of the European Union (OJEU) procurement. OJEU is the publication in which all 
tenders from the public sector, valued above a certain financial threshold according 
to EU legislation, must be published. 
• If it is proposed instead to extend a contract, this requires specific commercial and 
financial approval depending on value to ensure that this is the most appropriate and 
is not a preferred option. 
• Commercial transactions with a value of £10m or above or deemed novel, 
contentious or repercussive are subject to scrutiny by the Commercial Assurance 
Board (CAB) which seeks to ensure alignment to government and BEIS strategy and 
procurement policies as well as to manage commercial risk and maximise 
commercial outcomes.  Such cases also require Cabinet Office spend controls 
approval. This applies to all commercial transactions in BEIS network.  
• Any commercial transaction between £10k and £10M in BEIS core department is 
approved by BEIS Commercial Team. 
Outsourced services 
4.15. BEIS has relatively few outsourced services contracts to deliver its key services to the 
public. Those that are essential to the Department’s work tend to be for services for its 
staff, such as facilities management of its buildings and provision of some of BEIS’ 
information technology services. 
4.16. Such services are covered by Cabinet Office spend controls and are subject to scrutiny 
by the relevant functional groups. BEIS has introduced Commercial Leads to provide 
tailored support to directorates to establish appropriate levels of commercial support to 
drive forward specific priorities for the directorate and the Department as a whole.   

Document title goes here 
18 
4.17. BEIS has developed a strategy to strengthen its commercial capabilities across the 
department through a Commercial Leads structure who focus on the whole contract 
lifecycle.  
4.18. BEIS contracts are categorised, according to value and business impact, to facilitate a 
risk-based approach to contract management and provision of appropriate resources. 
The Department will lead and support contract managers of major contracts to monitor 
performance, ensure contract compliance and encourage continuous improvement and 
innovation. This will reduce risk and enhance value for money for these contracts. 
4.19. BEIS Contract managers capability is supported and enhanced with access to resources 
and training available through the Commercial College – namely the Contract 
Management Capability Programme (CMCP). Contract Managers are assessed and 
matched to the appropriate CMCP level based on their skills and job requirements. 
 
 

Document title goes here 
19 
ANNEX A – Alphabetical list of BEIS 
partner organisations and wider network  
Name 
Category 
Advisory, Conciliation and Arbitration Service 
NDPB (non-departmental public bodies) 
AEA Insurance Limited 
Part of UKAEA (UK Atomic Energy Authority) 
BBB Patient Capital Holdings Limited 
Part of BBB (British Business Bank plc) 
BIS (Postal Services Act 2011) Company 
Limited 
Other non-ALB 
BNFL Investments (US) Limited 
Part of British Nuclear Fuels Limited 
British Business Aspire Holdco Ltd 
Part of BBB 
British Business Bank plc (BBB) 
Other Public Body not yet administratively 
classified 
British Business Finance Ltd 
Part of BBB 
British Business Financial Services Ltd 
Part of BBB 
British Business Investments Ltd 
Part of BBB 
British Hallmarking Council 
NDPB 
British Nuclear Fuels Limited  
Public Corporation 
British Nuclear Group Ltd 
Part of British Nuclear Fuels Limited 
British Patient Capital Limited 
Part of BBB 
 
British Technology Investments Limited 
Other non-ALB 
Capital for Enterprise (GP) Limited 
Part of BBB 
Capital for Enterprise Fund Managers Limited Part of BBB 
Capital for Enterprise Limited 
Part of BBB 
Central Arbitration Committee 
NDPB 
Certification Office for Trade Union and 
Employers’ Associations 
Statutory Office holder 
Civil Nuclear Police Authority 
NDPB 
Coal Authority 
NDPB 
Committee on Climate Change 
NDPB 
Committee on Fuel Poverty 
NDPB 
Committee on Radioactive Waste 
Management 
NDPB 
Companies House 
Executive Agency 
Competition and Markets Authority 
Non-Ministerial Department 
Competition Appeal Tribunal 
NDPB 
Competition Service 
NDPB 

Document title goes here 
20 
Name 
Category 
Cornwall and Isles of Scilly Investments 
Limited 
Other non-ALB 
Council for Science and Technology 
Expert Committee 
Daresbury Science & Innovation Campus 
Limited 
Other non-ALB (Dissolved in 31 March 2020) 
Daresbury Science and Innovation Campus 
Public Sector Limited Liability Partnership  
Other non-ALB 
Diamond Light Source Limited 
Other non-ALB 
Direct Rail Services Limited 
Part of NDA Group (Nuclear 
Decommissioning Authority) 
Director of Labour Market Enforcement 
Statutory Office holder 
Dounreay Site Restoration Limited 
NDA Site Licence company – managed by 
NDA 
East Midlands Early Growth Fund Limited 
Other non-ALB 
Electricity Settlements Company Ltd 
Other Public Body not yet administratively 
classified 
Endorsement Board  
Expert Committee 
Enrichment Holdings Ltd (EHL) 
Other non-ALB 
Enrichment Investments Limited 
Part of EHL 
Fleetbank Funding Limited 
Other non-ALB 
Francis Crick Institute Ltd (Private Sector 
Company) 
Joint Ventures 
Government Office for Science 
Office of the Department 
Groceries Code Adjudicator 
Statutory Office holder 
Harwell Science and Innovation Campus 
Public Sector Limited Partnership 
Other non-ALB 
Her Majesty's Land Registry 
Non-Ministerial Department 
Independent Complaints Reviewer 
Supporting Land Registry 
Industrial Development Advisory Board 
Expert Committee 
Innovate UK Loans Limited 
Part of UKRI (United Kingdom Research and 
Innovation) 
Insolvency Service 
Executive Agency 
Institut Laue-Langevin (A third-owned by UK 
and managed by UKRI) 
Joint Ventures 
Intellectual Property Office 
Executive Agency 
International Nuclear Services France SAS 
Part of NDA Group  
International Nuclear Services Japan KK 
Part of NDA Group 
International Nuclear Services Ltd 
Public Corporation 
Land Registration Rules Committee 
Supporting Land Registry 
LLW Repository Limited 
NDA Site Licence company – managed by 
NDA 

Document title goes here 
21 
Name 
Category 
Low Carbon Contracts Company Ltd 
Other Public Body not yet administratively 
classified 
Low Pay Commission 
NDPB 
NW VCLF HF LLP 
Other non-ALB 
Magnox Limited 
Part of NDA – Site Licence Company 
Medical Research Council 
Part of UKRI 
Meteorological Office 
Executive Agency 
Midlands Engine Investments Limited 
Other non-ALB 
National Nuclear Laboratories Ltd 
Public Corporation 
National Physical Laboratory 
Public Corporation 
NDA Archives Limited 
Part of NDA Group 
NDA Properties Limited  
Part of NDA Group 
Northern Powerhouse Investments Limited 
Other non-ALB 
Nuclear Decommissioning Authority (NDA) 
NDPB 
Nuclear Liabilities Financing Assurance 
Board 
Expert Committee 
Nuclear Liabilities Fund Limited 
Central Government but not ALB 
Other non-ALB 
Office for Product Safety and Standards  
Office of the Department 
Office of Gas and Electricity Markets  
Non-Ministerial Department 
Office of Manpower Economics 
Office of the Department 
Office of the Regulator of Community Interest 
Companies 
Statutory Office Holder 
Pacific Nuclear Transport Limited 
Public Corporation 
Oil and Gas Authority 
NDPB 
Ordnance Survey 
Public Corporation 
Post Office Ltd 
Public Corporation 
Postal Services Holding Company Limited 
Other non-ALB 
Pubs Code Adjudicator 
Statutory Office holder 
Radioactive Waste Management Limited 
Part of NDA Group 
Regulatory Horizons Committee 
Expert Committee 
Regulatory Policy Committee 
NDPB 
Research Sites Restoration Limited 
Part of NDA Group 
Rutherford Indemnity Limited 
Part of International Nuclear Services (Public 
Corporation) 
Sellafield Limited 
Part of NDA Group 
Small Business Commissioner 
NDPB 

Document title goes here 
22 
Name 
Category 
South Tees Site Company Limited 
Central Government but not ALB 
STFC Innovations Limited 
Part of UKRI 
The Copyright Tribunal 
NDPB 
The Financial Reporting Council Limited 
Other Public Body not yet administratively 
classified 
The NESTA Trust 
Other non-ALB 
The Science and Technology Facilities 
Council (STFC) 
Part of UKRI- (Dissolved in 30 March 2020) 
The Start-Up Loans Company 
Part of BBB 
UK Climate Investments Apollo Limited 
Part of UKCI (UK Climate Investments LLP) 
UK Climate Investments H1 Limited 
Part of UKCI  
UK Climate Investments Indigo Limited 
Part of UKCI  
UK Climate Investments Lakeside Limited 
Part of UKCI  
UK Climate Investments LLP (UKCI) 
Other non-ALB 
UK Climate Investments VC Limited 
Part of UKCI  
UK Green Infrastructure Platform Limited 
Other non-ALB 
UK Shared Business Services Limited 
Other Public Body not yet administratively 
classified 
UK Space Agency 
Executive Agency 
United Kingdom Atomic Energy Authority 
(UKAEA) 
NDPB 
United Kingdom Research and Innovation 
(UKRI) 
NDPB 
Urenco Limited 
Associate 
 
 

 
 
This publication is available from: www.gov.uk/government/collections/accounting-officer-
system-statements   
If you need a version of this document in a more accessible format, please email 
xxx@xxx.xx. Please tell us what format you need. It will help us if you say what 
assistive technology you use.