Highways Agency Annual Report and Accounts 2011-2012

Governance statement: SECTION 6
The Executive Committee is chaired by the Chief
Executive and is responsible for ensuring that the
appropriate plans are in place to allow the Agency
to meet business plan objectives and live within
its budget. Key items discussed at the Executive
Committee this year were:
• Executive performance reports.
• Communications forward looks.
• Spending Review implementation plans.
• Resource plans.
The Board and Executive Committee are supported
as follows:
Senior Appointments Committee:
Responsibilities:
The Senior Appointments Committee (SAC) has
been formed to ensure succession planning and
progression/developmental strategies are in place
for senior roles across the Agency. The SAC is
a sub-committee of the Board and meets on a
quarterly basis or more regularly if required. The
SAC is made up of the Agency’s Non-Executive
Chairman, Chief Executive, two non-executive
directors and the HR Divisional Director. SAC will
focus in particular on:
• Ensuring that succession planning is in place
for all senior appointments including those to
the Executive for both the longer term and for
emergency needs.
• Moderation and agreement to high level
objectives for all senior staff.
• Ensuring that progression for senior staff is
also mapped to include both personal and
developmental objectives.
• Agreeing performance and pay
recommendations on an annual basis.
Highways Agency Audit Committee:
The Audit Committee is responsible for providing
assurance, to me as Accounting Officer, that the
Agency’s system of internal control is operating
effectively. It meets approximately every quarter
and reviews the Board’s assessment of corporate
risk, considering wider Departmental risk as
appropriate. In addition, it considers reports
from the Fraud Sub-Committee and monitors
progress with the internal audit programme,
health and safety audits and other assurance
processes operating across the Agency, ensuring
recommendations arising are implemented. It also
monitors the performance of external audit.
The Audit Committee is made up of the Agency’s
three non-executive directors, with David
Hughes as Chair. The Chair of the Agency’s
Audit Committee also sits on the DfT Audit
Committee and meets with his fellow audit
committee chairmen. I, as Chief Executive, my
Head of Internal Audit, Finance Director and
representatives from DfT and National Audit Office
attend meetings of the Audit Committee but have
no vote. The Chairman of the Audit Committee
advises, as appropriate, on key risk and control
issues arising from the work of the Committee.
The Audit Committee specifically reviewed or
considered various topics including the:
• 2011-12 Highways Agency Annual Report &
Accounts.
• 2011-12 Internal Audit Annual Report &
Opinion.
• 2011-12 Highways Agency Stewardship
Report.
• The Highways Agency’s Corporate Risk
Register.
• Reporting of instances of identified fraud,
together with assurance over the relevant
central enforcement, as appropriate.
• Internal Audit and NAO audit strategies and
progress for providing assurance to the Chief
Executive as Accounting Officer.
• NAO Value for Money work.
• Dartford River Crossing and Severn Bridge
Accounts 2010-11.
• Planning and accounting policy changes
for 2012 including network valuation and
depreciation.
• The Health and Safety audit programme and
sources of assurance analysis.
• The Audit Committee’s terms of reference and
related matters.
The Audit Committee reviews its effectiveness
on an annual basis and takes forward actions to
improve its performance. The last exercise was
undertaken in February and actions were agreed
by the Committee at their May meeting. Progress
on implementation will be monitored throughout the
year and results incorporated into its next exercise.
Highways Agency Annual Report and Accounts 2011-12