Highways Agency Annual Report and Accounts 2011-2012

Governance statement: SECTION 6
I hold regular meetings with Ministers when
operational risks are discussed. Ministers receive
reports either directly or through the DfT reporting
process about risks to key initiatives as well as to
delivery of the Agency’s objectives.
I am keenly aware that risks to public
stakeholders arise from many aspects of the
development and operation of the strategic
road network. While developing new works, the
Agency involves the public in risk management
through the normal consultation process. My
senior staff and I regularly meet with stakeholder
groups and cover their views on risks to their
interests in these meetings. Road safety risks
are managed through a developing set of safety
action plans based on the views from the public
and stakeholders with the objective of meeting
the targets set by the DfT Road Safety Strategy.
This is supplemented by the introduction of our
‘Aiming for Zero’ strategy, which has a goal of
zero accidents and ill-health for our workforce.
Legal compliance is seen as the minimum
standard of health and safety. The strategy covers
both our own staff in the Traffic Officer Service
and our people who work in and from our offices.
It also applies to our supply chain of operatives
working on our network.
The Highways Agency Board has a Corporate
Risk Register which is the main tool used to
monitor the management of the most significant
risks in the Agency. These include:
• A terrorist incident on the network results in
serious congestion.
• The Agency is unable to maintain the network
in a serviceable condition.
• Loss, irregular disclosure or corruption of
important data.
• Failure to be ready for the additional pressures
of the London Olympics 2012.
Internal Control
There are a number of internal control processes
which provide a framework for managers and
staff to successfully and efficiently deliver the
Agency’s objectives. These processes are
designed to manage risk to an optimum level
rather than to eliminate all risk of failure; as such
compliance can only provide reasonable and not
absolute assurance of effectiveness. All Agency
processes have an assigned owner and are
documented on our intranet through the Agency’s
Way we Work (WwW) system. This is supported
by a clear Process Management policy which
requires Process Owners to regularly review
their processes and seek assurance on both
compliance and their suitability.
The key internal control processes are as follows:
• Business Planning - We have clear strategic
direction, objectives, responsibilities and key
targets in support of government policies
through business and strategic planning.
• Financial Management and Stewardship - We
ensure efficiency, best value, integrity, propriety
and regularity in the use and stewardship
of public funds and assets and that clear
accountability for expenditure and stewardship
of assets is in place through a variety of control
systems including:
- A mandatory Investment Control Framework
which encompasses HM Treasury Green
Book and DfT investment appraisal
standards for all expenditure. This includes
a process of testing whether a proposed
project or expenditure offers value for money
and considers affordability, prioritisation, risk
and strategy. These arrangements dovetail
with those of our parent Department for
larger investments that require approval from
DfT or Ministers.
- The Investment Control Framework also
addresses financial propriety and other
requirements from HM Treasury’s Managing
Public Money and other requirements.
- An Oracle financial accounting system with
embedded controls.
- Asset Management procedures to record
and account for all assets.
- An officer coordinates action on fraud related
matters and a Fraud Sub-Committee meets
regularly to oversee the handling of any
significant issues or allegations, all of which
are taken very seriously by the Agency and
fully investigated. The Fraud Sub-Committee
is a sub-committee of the Agency’s Audit
Committee and provides regular updates
to them on anti-fraud measures and any
Highways Agency Annual Report and Accounts 2011-12