Corporate report

The British Museum framework document

Published 6 February 2025

© Crown copyright 2025

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Introduction and background

1. Purpose of document

1.1 This framework document (the “framework document”) has been agreed between the Department for Culture, Media and Sport (DCMS) and the British Museum (BM) in accordance with HM Treasury’s handbook Managing Public Money (MPM) (as updated from time to time) and has been approved by HM Treasury.

1.2 The framework document sets out the broad governance framework within which the BM and the DCMS operate. It sets out the BM’s core responsibilities, describes the governance and accountability framework that applies between the roles of the DCMS and the BM, and sets out how the day-to-day relationship works in practice, including in relation to governance and financial matters.

1.3 The document does not convey any legal powers or responsibilities but both parties agree to operate within its terms. Nothing in this Document shall prevent the BM from carrying out its legal duties under its founding legislation or under any other legislation which impacts on its functions, activities or powers. The expectations set out here sit alongside the BM’s statutory and charitable duties expected of staff and trustees. Any perceived conflicts should be brought to the attention of DCMS to discuss an appropriate way forward.

1.4 While commercial subsidiaries or trading arms may not be subject to the same requirements as the British Museum itself, the British Museum’s accounting officers should refer to Managing Public Money guidance which provides guidance on any delegations and oversight required for subsidiaries, if applicable. Prior to the next date for review and updating of this document, there shall be a document setting out the arrangements between the British Museum and any subsidiaries.

1.5 Copies of the document and any subsequent amendments have been placed in the libraries of both Houses of Parliament and made available to members of the public on the BM’s website.

1.6 This framework document should be reviewed and updated at least every 3 years unless there are exceptional reasons that render this inappropriate that have been agreed with HM Treasury and the Principal Accounting Officer of the sponsor department. The latest date for review and updating of this document is January 2028.

2. Objectives

2.1 DCMS and the BM share the common objective of caring for and preserving museum collections; ensuring that they are exhibited to the public and made available for study and research; and promoting the public’s understanding and enjoyment of these collections. To achieve this the BM and DCMS will work together in recognition of each other’s roles and areas of expertise, providing an effective environment for the BM to achieve its charitable objectives through the promotion of partnership and trust and ensuring that the BM also supports the strategic aims and objective of the department and wider government as a whole within its charitable purposes.

3. Classification

3.1 The BM has been classified as a central government organisation by HM Treasury Classifications Team. It has been administratively classified by the Cabinet Office as a non-departmental public body (NDPB).

The BM is an exempt charity whose Principal Regulator is the Secretary of State for Culture, Media and Sport.

3.2 The BM is a ‘Freedoms Body’. This means that it operates under a set of exemptions from, or modifications to, a specific number of financial and operating requirements. These are detailed at Annex B: Cultural Freedoms Bodies’ Freedoms Charter.

Purposes, aims and duties

4. Purposes

4.1 The BM was established by an Act of Parliament in 1753 and is now governed by the British Museum Act 1963.

5. Powers and duties

5.1 The BM’s powers and duties stem from the British Museum Act 1963.

5.2 The BM’s statutory and charitable duties and functions are to hold a collection representative of world cultures and to ensure that the collection is housed in safety, conserved, curated, researched and exhibited.

6. Aims

6.1 The BM’s strategic aims are to:

  • preserve and enhance the collection; and
  • provide access to the collection

Governance and accountability

7. Governance and accountability

7.1 The BM shall operate corporate governance arrangements that, so far as practicable and in the light of the other provisions of this framework document, its charitable status, or as otherwise may be mutually agreed, accord with good corporate governance practice and applicable regulatory requirements and expectations.

7.2 In particular (but without limitation), the BM should:

  • comply with the principles and provisions of the Corporate Governance in Central Government Departments Code of Good Practice (as amended and updated from time to time) to the extent appropriate and in line with their statutory duties or specify and explain any non-compliance in its annual report
  • comply with MPM
  • in line with MPM have regard to the Functional Standards as appropriate and in particular those concerning Finance, Commercial and Counter Fraud
  • take into account the codes of good practice and guidance set out in Annex A of this framework document, as they apply to ALBs
  • comply with their duties under charity law

7.3 In line with MPM Annex 3.1 and the Charities Statement of Recommended Practice the BM shall provide an account of corporate governance in its annual governance statement including the Board’s assessment of its compliance with the Code with explanations of any material departures. To the extent that the BM does intend to materially depart from the Code, the sponsor department should be notified in advance.

Role of the department

8. The responsible Minister

8.1 The responsible Minister is The Secretary of State for Culture, Media and Sport of the United Kingdom. The Secretary of State and other members of the DCMS Ministerial Team are accountable to Parliament for all matters concerning the BM. For consistency, the Secretary of State will be referred to as ‘the responsible Minister’ throughout this Framework Document.

8.2 The responsible Minister’s statutory powers in respect of the BM are set out in the British Museum Act 1963.

These are:

  • the power to appoint four of the Trustees on the nominations of the Presidents of the Royal Society, the Royal Academy, the British Academy and the Society of Antiquaries of London respectively
  • the power to direct the terms and conditions of the Director
  • the power to determine salary, allowances and other remuneration including that of the Director

Appointment of the Director

8.3 The Director of the BM is appointed by the Trustees with the approval of the Prime Minister under section 6(1) of the British Museum Act 1963.

Appointment to the board

8.4 The responsible Minister shall have the following appointment and approval rights in relation to the BM’s Board:

  • The terms of appointment of the Chair and Board members as applicable are as set out in the British Museum’s founding legislation or other founding documents. Where such appointments are made by Ministers, they will comply with the Governance Code on Public Appointments.
  • Trustees are appointed in accordance with the British Museum Act 1963. Where such appointments are made by Ministers, this is subject to the Public Appointments Order in Council and as such must comply with the Governance Code on Public Appointments.
  • All such appointments should have regard to the principle that appointments should reflect the diversity of the society in which we live, and appointments should be made taking account of the need to appoint boards which include a balance of skills and backgrounds.

Other ministerial powers and responsibilities

8.5 The responsible Minister is also responsible for:

  • agreeing the policy framework within which the BM operates

  • based on advice of the sponsor team, determining if it is necessary to read and  consider the BM’s performance framework, strategy and annual Plan. There may be circumstances in which Ministerial approval for certain courses of action is necessary and appropriate.

  • matters regarding spending approvals, in line with delegations as set out in the delegation letter and the Museum Freedoms detailed at Annex B

  • such other matters as may be appropriate and proportionate in the interests of the charity

9. The Principal Accounting Officer

9.1 The Principal Accounting Officer (PAO) is the Permanent Secretary of the department.

9.2 The PAO of DCMS designates the Director as the BM’s Accounting Officer (AO) and ensures that they are fully aware of their responsibilities. The PAO issues a letter appointing the AO, setting out their responsibilities and delegated authorities.

9.3 The respective responsibilities of the PAO and AOs for ALBs are set out in Chapter 3 of MPM.

9.4 The PAO is accountable to Parliament for the issue of any grant-in-aid to the BM.

9.5 The PAO is also responsible, usually via the sponsorship team, for advising the responsible Minister on:

  • an appropriate framework of objectives and targets for the BM in the light of the department’s wider strategic aims and priorities.

  • an appropriate budget for the BM in the light of the sponsor department’s overall public expenditure priorities

  • how well the BM is achieving its strategic objectives and whether it is delivering value for money

  • the exercise of the Ministers’ statutory responsibilities concerning the BM as outlined above

9.6 The PAO via the sponsorship team is also responsible for ensuring arrangements are in place in order to:

  • monitor the BM’s activities and performance

  • address significant problems in the BM, making such interventions as are judged necessary

  • periodically and at such frequency as is proportionate to the level of risk carry out an assessment of the risks both to the department and the BM’s objectives and activities in line with the wider departmental risk assessment process

  • inform the BM of relevant government policy in a timely manner

  • bring ministerial or departmental concerns about the activities of the BM to the full BM board, and, as appropriate to the departmental board, requiring explanations and assurances that appropriate action has been taken

10. The role of the sponsorship team

10.1 The DCMS Museums and Cultural Property Team is the primary contact for the BM. The responsible senior civil servant for this relationship is the Deputy Director for Museums and Cultural Property (or the holder(s) of any subsequent post that takes on the equivalent functions). They are the main source of advice to the responsible Minister on the discharge of their responsibilities in respect of the BM. They also support the PAO on their responsibilities toward the BM.

10.2 Officials of the Museums and Cultural Property Team, supported by Finance Business Partners, in the sponsor department will hold quarterly partnership meetings to review performance against plans, achievement against targets and expenditure against its DEL and AME allocations. The Museums and Cultural Property Team will also take the opportunity to explain wider policy developments that might have an impact on the BM.

11. Resolution of disputes between BM and department

11.1 Any disputes between the department and the BM will be resolved in as timely a manner as possible. The department and the BM will seek to resolve any disputes through an informal process in the first instance. If this is not possible, then a formal process, overseen by a DCMS Director (Culture and Creative Industries), will be used to resolve the issue. Failing this, the relevant Director General will oversee the dispute. They may then choose to ask the Permanent Secretary to nominate a non-executive member of the department’s board to review the dispute, mediate with both sides and reach an outcome, in consultation with the responsible Minister.

12. Freedom of Information and other data requests

12.1 Where a request for information is received by either party under the Freedom of Information Act 2000, or the Data Protection Act 2018, the party receiving the request will consult with the other party prior to any disclosure of information that may affect the other party’s responsibilities.

13.1 The BM shall update sponsors at quarterly partnership meetings on the existence of any active or reasonably anticipated litigation. The parties acknowledge the importance of ensuring that legal risks are communicated appropriately to the sponsor in a timely manner. 13.2 In respect of each substantial piece of litigation involving the ALB, the parties will agree appropriate and timely reporting on the status of the litigation. The parties will ensure that:

  • legally privileged documents and information are clearly marked as such

  • steps are taken to ensure that legal privilege is not waived, including ensuring any circulation within Government is limited to that which is strictly necessary

The BM governance structure

14. The Director

Responsibilities of the BM’s chief executive as accounting officer

14.1 The Director as AO is personally responsible for safeguarding the public funds for which they have charge; for ensuring propriety, regularity, value for money and feasibility in the handling of those public funds; and for the day-to-day operations and management of the BM. In addition, they should ensure that the BM as a whole is run on the basis of the standards, in terms of governance, decision-making and financial management, that are set out in Box 3.1 of MPM. These responsibilities include the below and those that are set in the AO appointment letter issued by the PAO of the sponsor department.

Responsibilities for accounting to Parliament and the public

14.2 Responsibilities to Parliament and the public include:

  • signing the accounts and ensuring that proper records are kept relating to the accounts and that the accounts are properly prepared and presented in accordance with any directions issued by the responsible Minister
  • preparing and signing a Governance Statement covering corporate governance, risk management and oversight of any local responsibilities, for inclusion in the annual report and accounts
  • ensuring that effective procedures for handling complaints about the BM in accordance with Parliamentary and Health Service Ombudsman’s Principles of Good Complaint Handling are established and made widely known within the BM and published on the BM’s website.
  • acting in accordance with the terms of MPM and other instructions and guidance issued from time to time by the department, the Treasury and the Cabinet Office
  • ensuring that as part of the above compliance they are familiar with and act in accordance with:
    • any governing legislation
    • this framework document
    • any delegation letter issued to body as set out in paragraph 18.1
    • any elements of any settlement letter issued to the sponsor department that is relevant to the operation of the BM
    • any separate settlement letter that is issued to the BM from the sponsor department
    • the BM’s other governing document(s)
  • ensuring they have appropriate internal mechanisms for monitoring, governance and external reporting regarding non-compliance with any conditions arising from the above documents
  • giving evidence, normally with the PAO, when summoned before the PAC on the BM’s stewardship of public funds

Responsibilities to DCMS

Responsibilities to DCMS include:

  • Prior to publication, presenting the BM’s corporate and business plans to the department to demonstrate these plans reflect the department’s wider strategic aims and agreed priorities;
  • informing the department of progress in helping to achieve the department’s policy objectives which coincide with the BM’s charitable purposes and in demonstrating how resources are being used to achieve those objectives
  • ensuring that timely forecasts and monitoring information on performance and finance are provided to the department; that the department is notified promptly if over or under spends are likely and that corrective action is taken; and that any significant problems whether financial or otherwise, and whether detected by internal audit or by other means, are notified to the department in a timely fashion

Managing conflicts

14.5 The Director should follow the advice and direction of the Board, except in very exceptional circumstances with a clear cut and transparent rationale for not doing so.

14.6 If the Board, or its chairperson, is contemplating a course of action involving a transaction which the Director considers would infringe the requirements of propriety or regularity or does not represent prudent or economical administration, efficiency or effectiveness, is of questionable feasibility, or is unethical the chief executive in their role as AO should reject that course of action and ensure that the Board have a full opportunity to discuss the rationale for that rejection.

14.7 If the Chair or Board of the BM is minded to instruct its AO to carry out a course inconsistent with their duties as AO, then the AO should make their reservations clear, preferably in writing. If the Board is still minded to proceed, the BM AO should then:

  • ask the PAO of the sponsor department to consider intervening to resolve the difference of view, preferably in writing
  • if the Board’s decision stands, seek its written direction to carry it out, asking the sponsor department to inform HM Treasury
  • proceed to implement without delay
  • follow the routine in paragraph 3.6.6 of MPM

15. The board of trustees

Composition of the board of trustees

15.1 The BM will have a board of trustees in line with good standards of corporate governance and as set out in its establishing statute and in guidance as set out in Annex A. The role of the board shall be to run the BM, and to deliver the charitable objectives, in accordance with the purposes as set out above, their statutory, regulatory, charity law and common law duties and their responsibilities under this framework document and the BM’s framework and any other governing documents. Detailed responsibilities of the board shall be set out in the Board terms of reference.

15.2 The Board will consist of twenty-five trustees, including a chairperson, that have a balance of skills and experience appropriate to directing the BM’s business.

Board committees

15.3 The Board may set up such committees as necessary for it to fulfil its functions. As is detailed below at a minimum this should include an Audit and Risk Committee chaired by an appropriately qualified non-executive member of the Board.

15.4 While the Board may make use of committees to assist its consideration of appointments, succession, audit, risk and remuneration it retains responsibility for, and endorses, final decisions in all of these areas. The Chair should ensure that sufficient time is allowed at the board for committees to report on the nature and content of discussion, on recommendations, and on actions to be taken.

15.5 Where there is disagreement between the relevant committee and the Board, adequate time should be made available for discussion of the issue with a view to resolving the disagreement. Where any such disagreement cannot be resolved, the committee concerned should have the right to report the issue to the sponsor team, PAO and responsible Minister. They may also seek to ensure the disagreement or concern is reflected as part of the report on its activities in the annual report.

15.6 The Chair should ensure board committees are properly structured with appropriate terms of reference. The terms of each committee should set out its responsibilities and the authority delegated to it by the Board. The Chair should ensure that committee membership is periodically refreshed.

Duties of the Board of trustees

15.7 The board of trustees is specifically responsible for:

  • establishing and taking forward the strategic aims and objectives of the BM, consistent with its overall strategic direction, charitable purposes, and within the policy and resources framework determined by the responsible Minister
  • providing effective leadership of the BM within a framework of prudent and effective controls which enables risk to be assessed and managed
  • ensuring the financial and human resources are in place for the BM to meet its objectives
  • reviewing management performance
  • ensuring that the Board receives and reviews regular financial and management information concerning the management of the BM
  • ensuring that it is kept informed of any changes which are likely to impact on the strategic direction of the BM Board or on the attainability of its targets, and determining the steps needed to deal with such changes and where appropriate bringing such matters to the attention of the responsible Minister and PAO via the executive team, sponsorship team or directly
  • ensuring that any statutory or administrative requirements for the use of public funds are complied with; that the Board operates within the limits of its statutory authority and any delegated authority agreed with the sponsor department, and in accordance with any other conditions relating to the use of public funds
  • ensuring that in reaching decisions, the Board takes into account guidance issued by the sponsor department
    • this framework document
    • their duties as trustees under charity law
    • any delegation letter issued to the BM as set out in paragraph 18.1
    • any elements of any settlement letter issued to the sponsor department that is relevant to the operation of the BM
    • any separate settlement letter that is issued to the BM from the sponsor department; and
    • that they have appropriate internal mechanisms for the monitoring, governance and external reporting regarding any conditions arising from the above documents and ensure that the chief executive and the BM as a whole act in accordance with their obligations under the above documents
  • demonstrating high standards of corporate governance at all times, including by using external expertise or an independent audit committee to help the board to address key financial and other risks
  • appointing, with the Prime Minister’s approval, a Director and, in consultation with the department, set performance objectives and remuneration terms linked to these objectives for the Director which give due weight to the proper management and use and utilisation of public resources
  • putting in place mechanisms for the Director to have visibility of Board activity with sufficient time before Board decisions are agreed. The mechanism will enable the Director to take action where needed as per paragraphs 14.5 to 14.7 (‘Managing conflicts’)
  • determining all such other things which the Board considers ancillary or conducive to the attainment or fulfilment by the BM of its objectives, including its charitable purposes

15.8 The Board should ensure that effective arrangements are in place to provide assurance on risk management, governance and internal control.

15.9 The Board should make a strategic choice about the style, shape and quality of risk management and should lead the assessment and management of opportunity and risk. The Board should ensure that effective arrangements are in place to provide assurance over the design and operation of risk management, governance and internal control in line with the Management of Risk – Principles and Concepts (The Orange Book). The Board must set up an Audit and Risk Assurance Committee chaired by a suitably experienced or qualified trustee member to provide independent advice and ensure that the department’s Audit and Risk Assurance Committee are provided with routine assurances with escalation of any significant limitations or concerns. The Board is expected to assure itself of the adequacy and effectiveness of the risk management framework and the operation of internal control.

16. The Chair’s role and responsibilities

16.1 The Chair is responsible for leading the Board in the delivery of its responsibilities. Such responsibility should be exercised in the light of their duties and responsibilities as set out in their appointment letter, the priorities in the Chair’s letter issued to them by the sponsor team, the statutory authority governing the BM, the BM’s governing document and charity law, and this document and the documents and guidance referred to within this document.

16.2 Communications between the BM’s Board and the responsible Minister should normally be through the Chair.

16.3 The Chair is bound by the Code of Conduct for Board Members of Public Bodies, which covers conduct in the role and includes the Nolan Principles of Public Life.

16.4 In addition, the Chair is responsible for:

  • ensuring, including by monitoring and engaging with appropriate governance arrangements, that the BM’s affairs are conducted with probity
  • ensuring that, where compatible with the BM’s statutory and charitable duties, policies and actions support the responsible Minister’s wider strategic policies and where appropriate, these policies and actions should be clearly communicated and disseminated throughout the BM.

16.5 The Chair has the following leadership responsibilities:

  • formulating the Board’s strategy
  • ensuring that the Board, in reaching decisions, takes proper account of guidance provided by the responsible Minister or the department
  • promoting the efficient and effective use of staff and other resources
  • delivering high standards of regularity and propriety
  • representing the views of the board to the general public

16.6 The Chair also has an obligation to ensure that:

  • the work of the Board and its members is reviewed and is working effectively including ongoing assessment of the performance of individual board members with a formal annual evaluation and more in-depth assessments of the performance of individual board members when being considered for re-appointment
  • that in conducting assessments that the view of relevant stakeholders including employees and the sponsorship team are sought and considered
  • that the Board has a balance of skills appropriate to directing the BM’s business, and that all trustees (including the Chair) and the Director continually update their skills, knowledge and familiarity with the BM to fulfil their role both on the Board and committees. This will include but not be limited to skills and training in relation to financial management and reporting requirements, risk management and the requirements of board membership within the public sector
  • board members are fully briefed on terms of appointment, duties, rights and responsibilities
  • they, together with the other board members, receives appropriate training on financial management and reporting requirements and on any differences that may exist between private and public sector practice
  • the responsible Minister is advised of the BM’s needs when board vacancies arise
  • there is a Board Operating Framework in place setting out the role and responsibilities of the board consistent with the Government Code of Good Practice for Corporate Governance
  • there is a code of practice for board members in place, consistent with the Cabinet Office Code of Conduct for Board Members of Public Bodies
  • there should be an annual meeting between DCMS SCS and the British Museum Chair to discuss British Museum and Board performance. This should be informed by an appraisal of the Chair conducted by the Board, who will wish to consider, among other things, the Cabinet Office guidance: ‘Chair appraisals: principles and resources for arm’s-length bodies and sponsoring departments.’

17. Individual trustees’ responsibilities

17.1 Individual trustees should:

  • comply at all times with the Code of Conduct for Board Members of Public Bodies, which covers conduct in the role and includes the Nolan Principles of Public Life as well as rules relating to the use of public funds and to conflicts of interest
  • demonstrate adherence to the 12 Principles of Governance for all Public Body Non-Executive Directors as appropriate
  • not misuse information gained in the course of their public service for personal gain or for political profit, nor seek to use the opportunity of public service to promote their private interests or those of connected persons or organisations
  • comply with the Board’s rules on the acceptance of gifts and hospitality, and of business appointments
  • act in good faith and in the best interests of the BM
  • ensure they are familiar with any applicable guidance on the role of public sector non-executive directors and boards that may be issued from time to time by the Cabinet Office, HM Treasury or wider government
  • ensure that they are familiar with guidance on the duties of trustees under charity law
  • comply with the BM’s governing document

18. Delegated authorities

18.1 The BM’s delegated authorities and limits are set out in the delegation letter issued annually at the start of a new Financial Year. This delegation letter may be updated and superseded by later versions which may be issued by the sponsor department in agreement with HM Treasury.

18.2 In line with MPM Annex 2.2 these delegations will be reviewed on an annual basis.

18.3 The BM shall obtain the department’s and where appropriate HM Treasury’s prior written approval before:

  • entering into any undertaking to incur any expenditure that falls outside the delegations or which is not provided for in the BM’s annual budget allocation as approved by the department
  • incurring expenditure for any purpose that is or might be considered novel or contentious, or which has or could have significant future cost implications
  • making any significant change in the scale of operation or funding of any initiative or particular scheme previously approved by the department
  • making any change of policy or practice which has wider financial implications that might prove repercussive or which might significantly affect the future level of resources required
  • carrying out policies that go against the principles, rules, guidance and advice in MPM

19. Spending authority

19.1 Once the budget allocation has been approved by the sponsor department and subject to any restrictions imposed by statute, the responsible Minister’s instructions, this document, HM Treasury settlement letters, the BM shall have authority to incur expenditure approved in the budget and in line with their Freedoms without further reference to the sponsor department, on the following conditions:

  • the BM shall comply with the delegations set out in the delegation letter. These delegations shall not be altered without the prior agreement of the sponsor department and as agreed by HM Treasury and Cabinet Office as appropriate

  • the BM shall comply with MPM regarding novel, contentious or repercussive proposals

  • inclusion of any planned and approved expenditure in the budget shall not remove the need to seek formal departmental approval where any proposed expenditure is outside the delegated limits or is for new schemes deviating significantly from activities and expenditure anticipated in the Corporate and/or Strategic Plan.

  • the BM shall provide the sponsor department with such information about its operations, performance, individual projects or other expenditure as the sponsor department may reasonably require

20. Banking and managing cash

20.1 As a Freedoms Body, the BM does not need explicit approval from DCMS to change banking provider, but should provide written notification to DCMS upon doing so.

20.2 The AO is responsible for ensuring BM has a banking policy as set out in MPM and ensuring that policy is complied with.

21. Procurement

21.1 As a Freedoms Body the BM has the flexibility to opt in and out of central procurement and is exempt from a number of other spend controls, see Annex B for details. Nonetheless, the following standards of good practice apply.

21.2 The BM will ensure that its procurement policies are aligned with and comply with any relevant UK or other international procurement rules and in particular the current Public Procurement Regulations (for example but not exclusively the Public Contracts Regulations 2015 and the Procurement Act 2023).

21.3 The BM shall establish its procurement policies and document these in a Procurement Policy and Procedures Manual.

21.4 In procurement cases where the BM is likely to exceed its delegated authority limit, and where the relevant Freedom exemption does not apply, procurement strategy approval for the specific planned purchase must be sought from DCMS commercial.

21.5 Goods, services, and works should be acquired by competition where necessary and appropriate. Proposals to let direct award or restricted contracts shall be limited and exceptional. The direct award financial Threshold value (where no competition has taken place to select a supplier) is set at £139,000 (ex VAT) for each contract or requirement. The BM must comply with the direct award process as outlined at Annex C and as otherwise communicated to them by the department.

21.6 Where appropriate and proportionate, procurement by the BM of works, equipment, goods, and services shall be based on, a full option appraisal and value for money (VfM), i.e. the optimum combination and whole life costs and quality (fitness for purpose).

21.7 The BM shall:

  • engage with department and government wide procurement initiatives that seek to achieve VfM from collaborative projects
  • comply with relevant Procurement Policy Notes issued by Cabinet Office
  • co-operate with initiatives to improve the availability of procurement data to facilitate the achievement of VfM

21.8 The BM shall comply with the relevant commercial and grants standards. These standards apply to the planning, delivery, and management of government commercial activity, including management of grants in all departments and ALBs, regardless of commercial approach used and form part of a suite of functional standards that set expectations for management within government.

22. Risk management

22.1 The BM shall ensure that the risks that it faces are dealt with in an appropriate manner, in accordance with relevant aspects of best practice in corporate governance, and develop a risk management strategy, in accordance with the Treasury guidance Management of Risk: Principles and Concepts.

22.2 The BM will allow for risk-based DCMS involvement in Audit and Risk Committee meetings

Counter fraud and theft

23.1 The BM should adopt and implement policies and practices to safeguard itself against fraud and theft.

23.2 The BM should act in line with guidance as issued by the Counter Fraud Function and in compliance with the procedures and considerations as set in in MPM Annex 4.9 and the Counter Fraud Functional Standard. It should also take all reasonable steps to appraise the financial standing of any firm or other body with which it intends to enter a contract or to provide grant or grant-in-aid.

23.3 The BM should keep records of and prepare and forward to the department an annual report on fraud and theft suffered by the BM and notify the sponsor department of any unusual or major incidents as soon as possible. The BM should also report detected loss from fraud, bribery, corruption and error, alongside associated recoveries and prevented losses, to the counter fraud centre of expertise in line with the agreed government definitions as set out in Counter Fraud Functional Standard.

24. Staff

Broad responsibilities for staff

24.1 Within the arrangements approved by the responsible Minister and the Treasury and subject to any relevant Freedom, the BM will have responsibility for the recruitment, retention and motivation of its staff. The broad responsibilities toward its staff are to ensure that:

  • the rules for recruitment and management of staff create an inclusive culture in which diversity is fully valued; appointment and advancement is based on merit; there is no discrimination against employees who share protected characteristics under the Equality Act 2010
  • the level and structure of its staffing, including grading and staff numbers, are appropriate to its functions and the requirements of economy, efficiency and effectiveness
  • the performance of its staff at all levels is satisfactorily appraised and the BM performance measurement systems are reviewed from time to time
  • its staff are encouraged to acquire the appropriate professional, management and other expertise necessary to achieve the BM’s objectives
  • proper consultation with staff takes place on key issues affecting them
  • adequate grievance and disciplinary procedures are in place
  • whistle-blowing procedures consistent with the Public Interest Disclosure Act are in place
  • a code of conduct for staff is in place

Staff costs

24.2 Subject to its delegated authorities, the BM shall ensure that the creation of any additional posts does not incur forward commitments that will exceed its ability to pay for them.

Pay and conditions of service

24.3 The BM’s staff are subject to appropriate levels of remuneration and terms and conditions of service (including pensions). As a Freedom Body the BM will not be subject to the Civil Service Pay Remit Guidance (‘PRG’) and will have the ability to offer average pay awards in excess of caps set out in this guidance.

They shall continue to engage with their Sponsor Department during the process of making a pay remit application, particularly prior to completion. They shall also continue to provide outturn data to HM Treasury and adhere to all other Civil Service Pay guidance issued by HM Treasury and the Cabinet Office.

24.4 If Civil Service terms and conditions of service apply to the rates of pay and non-pay allowances paid to the staff and to any other party entitled to payment in respect of travel expenses or other allowances, payment shall be made in accordance with the Civil Service Management Code except where prior approval has been given by the department to vary such rates.

24.5 Staff terms and conditions should be set out and available to both staff and DCMS if requested.

24.6 The BM shall continue to adhere to all other Civil Service Pay guidance issued by HM Treasury and the Cabinet Office including the Senior Pay Guidance.

24.7 Where a performance-related pay scheme is operated the BM shall have due regard to the Senior Pay Guidance.

24.8 The travel expenses of board members shall be tied to the rates allowed to senior staff of the BM where appropriate and possible. Reasonable actual costs shall be reimbursed.

Pensions, redundancy and compensation

24.9 Compensation scheme rules and pension scheme rules should reflect legislative and HM Treasury guidance requirements regarding exit payments.

24.10 The BM staff shall normally be eligible for a pension provided by the Principal Civil Service Pension Scheme (PCSPS). Staff may opt out of the occupational pension scheme provided by the BM, but the employers’ contribution to any personal pension arrangement, including stakeholder pension, shall normally be limited to the national insurance rebate level. Note that there is an exception for ALBs covered by the PCSPS partnership arrangement, and for PCSPS by-analogy versions.

As a Freedom Body the BM has the right to opt out of the Principal Civil Service Pension Scheme for new starters.

24.11 Any proposal by the BM to pay any redundancy or compensation for loss of office, requires the prior approval of the department. Proposals on severance must comply with the rules in chapter 4 of MPM.

Business plans, financial reporting and management information

25. Corporate and business plans

25.1 The BM shall share with the department its multi-year strategic plans in advance of publication, and provide annual progress updates. The plan shall reflect the BM’s statutory and/or other duties, its charitable purposes, and, within those duties, the priorities set from time to time by the responsible Minister (including decisions taken on policy and resources in the light of wider public expenditure decisions). The plan shall demonstrate how the BM contributes to the achievement of the department’s medium-term plan and priorities and aligned performance metrics and milestones in line with its charitable objectives.

25.2 The first year of the corporate plan, amplified as necessary, shall form the business plan. The business plan shall be updated to include key targets and milestones for the year immediately ahead and shall be linked to budgeting information so that resources allocated to achieve specific objectives can readily be identified by the department. Subject to any commercial considerations, a digest of the corporate and business plans should be published by the BM on its website and separately be made available to staff.

25.3 The following key matters should, where necessary and relevant, be included in the plans:

  • key objectives and associated key performance targets for the forward years, and the strategy for achieving those objectives
  • key non-financial performance targets
  • a review of performance in the preceding financial year, together with comparable outturns for the previous year, and an estimate of performance in the current year
  • alternative scenarios and an assessment of the risk factors that may significantly affect the execution of the plan but that cannot be accurately forecast
  • other matters as agreed between the department and the BM

26. Budgeting procedures

26.1 Each year, in the light of decisions by the department on its updated draft corporate plan, the department will send to the BM within an agreed timetable:

  • a formal statement of the annual budgetary provision allocated by the department in the light of competing priorities across the department and of any forecast income approved by the department
  • a statement of any planned change in policies affecting the BM

26.3 The annual business plan will take account both of approved funding provision and any forecast receipts. It will include a budget of estimated payments and receipts together with a profile of expected expenditure and of draw-down of any departmental funding and/or other income over the year. These elements form part of the business plan for the year in question.

27. Grant-in-aid and any ring-fenced grants

27.1 Any grant-in-aid provided by the department for the year in question will be voted in the department’s Supply Estimate and be subject to parliamentary control.

27.2 The grant-in-aid will normally be paid in monthly instalments on the basis of written applications showing evidence of need. The BM will comply with the general principle, that there is no payment in advance of need. Cash balances accumulated during the course of the year from grant-in-aid or other Exchequer funds shall be kept to a minimum level consistent with the efficient operation of the BM. Grant-in-aid not drawn down by the end of the financial year shall lapse.

27.3 In the event that the department provides the BM separate grants for specific (ring-fenced) purposes, it would issue the grant as and when the BM needed it on the basis of a written request. The BM would provide evidence that the grant was used for the purposes authorised by the department. The BM shall not have uncommitted grant funds in hand, nor carry grant funds over to another financial year.

28. Annual report and accounts

28.1 The BM Board must publish an annual report of its activities together with its audited accounts after the end of each financial year. The BM shall provide the department its finalised (audited) accounts within an agreed timeframe each year in order for the accounts to be consolidated within DCMS. A draft of the report should be submitted to the department two weeks before the proposed publication date. The accounts should be prepared in accordance with the relevant statutes, relevant accounting practices and specific accounts direction issued by the department as well as the Treasury’s Financial Reporting Manual (FReM).

28.2 The annual report must:

  • cover any corporate, subsidiary or joint ventures under its control
  • comply with the FreM and in particular have regard to the illustrative statements for an NDPB
  • outline main activities and performance during the previous financial year and set out in summary form forward plans.

28.3 Information on performance against key financial targets is included within the annual report and subject to the auditor’s consistency opinion. The report and accounts shall be laid in Parliament and made available on the BM website, in accordance with the guidance in the FReM.

29. Reporting performance to the department

29.1 The BM shall operate management, information and accounting systems that enable it to review in a timely and effective manner its financial and non-financial performance against the budgets and targets set out in the corporate and business plans.

29.2 The BM shall inform the sponsor department of any changes that make achievement of objectives more or less difficult. It shall report financial and non-financial performance, including performance in helping to deliver Ministers’ policies, and the achievement of key objectives regularly via quarterly Partnership Meetings with the department.

29.3 The BM’s performance shall be formally reviewed by the department quarterly. The BM will share a summary of its financial and non-financial performance - including performance in helping to deliver ministers’ policies, on key DCMS priorities and against KPIs - quarterly as part of engagement meetings. The format of this information pack will be agreed between the BM and their Senior Sponsor in advance. Board papers will be shared on a case-by-case basis, as appropriate.

29.4 The responsible Minister will meet a senior representative of the BM once a year.

29.5 The PAO will meet the Chair and/or Director at least once a year.

30. Information sharing

30.1 The department has the right of access to all the BM records and personnel for any purpose including, for example, sponsorship audits and operational investigations. However, a Data Sharing Agreement/MoU will be required prior to the transfer of any personal data.

30.2 The BM shall provide the sponsor department with such information about its operations, performance, individual projects or other expenditure as the sponsor department may reasonably require.

30.3 The department and HM Treasury may request the sharing of data held by the BM in such a manner as set out in central guidance except where prohibited by law. This may include requiring the appointment of a senior official to be responsible for the data sharing relationship.

30.4 As a minimum, the BM shall provide the department with information monthly that will enable the department satisfactorily to monitor:

  • the BM’s cash management
  • its draw-down of grant-in-aid
  • forecast outturn by resource headings
  • other data required for the Online System for Central Accounting and Reporting (OSCAR)
  • data as required in respect of its compliance with any applicable Cabinet Office Controls pipelines or required in order to meet any condition as set out in any settlement letter

Audit

31. Internal audit

31.1 The BM shall:

  • establish and maintain arrangements for internal audit
  • ensure that any arrangements for internal audit are in accordance with the Public Sector Internal Audit Standards (PSIAS) as adopted by HM Treasury.
  • ensure the sponsor department is satisfied with the competence and qualifications of the Head of Internal Audit and the requirements for approving appointments in accordance with PSIAS
  • set up an audit committee of its Board in accordance with the Code of Good Practice for Corporate Governance and the Audit and Risk Assurance Committee Handbook.
  • forward the audit strategy, periodic audit plans and annual audit report, including the BM Head of Internal Audit opinion on risk management, control and governance as soon as possible to the sponsor department
  • keep records of and prepare and forward to the department an annual report on fraud and theft suffered by the BM and notify the sponsor department of any unusual or major incidents as soon as possible
  • will share with the sponsor department information identified during the audit process and the Annual Audit Opinion Report (together with any other outputs) at the end of the audit, in particular on issues impacting on the department’s responsibilities in relation to financial systems within the BM

32. External audit

32.1 The Comptroller & Auditor General (C&AG) audits the BM’s annual accounts and passes the audited accounts to the responsible Minister who will lay the accounts together with the C&AG’s report before parliament.

32.2 In the event that the BM has set up and controls subsidiary companies, the BM will invite the National Audit Office to tender to act as auditor of those company subsidiaries that it controls and/or whose accounts are consolidated within its own accounts.

32.3 The C&AG:

  • will consult the department and the BM on whom – the NAO or a commercial auditor – shall undertake the audit(s) on his behalf, though the final decision rests with the C&AG
  • has a statutory right of access to relevant documents, including by virtue of section 25(8) of the Government Resources and Accounts Act 2000, held by another party in receipt of payments or grants from the BM
  • will share with the sponsor department information identified during the audit process and the audit report (together with any other outputs) at the end of the audit, in particular on issues impacting on the Department’s responsibilities in relation to financial systems within the BM
  • will consider requests from departments and other relevant bodies to provide regulatory compliance reports and other similar reports at the commencement of the audit. Consistent with the C&AG’s independent status, the provision of such reports is entirely at the C&AG’s discretion

32.4 The C&AG may carry out examinations into the economy, efficiency and effectiveness with which the BM has used its resources in discharging its functions. For the purpose of these examinations the C&AG has statutory access to documents as provided for under section 8 of the National Audit Act 1983. In addition, the BM shall provide, in conditions to grants and contracts, for the C&AG to exercise such access to documents held by grant recipients and contractors and sub-contractors as may be required for these examinations; and shall use its best endeavours to secure access for the C&AG to any other documents required by the C&AG which are held by other bodies.

Reviews

33. Review of the BM’s status

33.1 The BM will be reviewed as part of the wider Public Bodies Reviews programme, at a time determined by the department’s ministers and their PAO.

Signatures

Ruth Hannant/Polly Payne

17/12/2024 on behalf of DCMS

Dr Nicholas Cullinan OBE

16/12/2024 on behalf of the British Museum

Annex A: Guidance

The BM shall have regard to and, where appropriate, comply with the following guidance, documents and instructions unless subject to an explicit exemption as a consequence of their status as a Freedoms Body.

Corporate governance

Financial management and reporting

Management of risk

Commercial management

Public appointments

The following are relevant where public bodies participate in public appointments processes.

Staff and remuneration

General

Annex B- Freedoms Charter (May 2023)

Background

The ‘Operational Freedoms’ are a set of exemptions from, or modifications to, a discrete number of financial and operating requirements applying to a group of arm’s length bodies[footnote 1] (ALBs). These ‘Freedoms Bodies’ have been granted these flexibilities in recognition of their distinct public-facing role and hybrid public/commercial funding model.

The following set of Freedoms was approved by HM Treasury and Cabinet Office on 26 April 2023. This document is an updated version of the Charter that was previously agreed by those parties and the Freedoms Bodies’ Sponsor Departments[footnote 2] in Q1 2022/23.

It will be reviewed in Q3 2024/25, or at the next Spending Review, whichever is sooner. The Freedoms are extended at HM Government’s discretion and may be paused or withdrawn where circumstances dictate.

Freedoms- at a glance

Financial freedoms

1. Freedom to maintain and spend reserves of self-generated income.

2. Freedom to invest non-grant income.

3. Exemption from the requirement to use the Government Banking Service.

4. The power to borrow through voted loans from sponsoring departments.

5. Favourable consideration of requests for Departmental Expenditure Limit (DEL) cover to meet exceptional depreciation charges.

6. Freedom to offer pay awards in excess of caps set out in the Pay Remit Guidance.

7. Freedom to opt out of the Principal Civil Service Pension Scheme for new starters.

Spend control freedoms

8. Flexibility to opt in or out of central procurement on a case by case basis.

9. Exemption from advertising, marketing, and communications spend controls.

10. Exemption from the commercial spend control.

11. Exemption from property spend controls.

12. Exemption from facilities management spend controls.

Increases to delegated limits

13. Digital and Technology spend.

14. Self-funded capital projects (HMT delegated limit for DCMS Freedom Bodies only).

Financial freedoms

1. Freedom to maintain and spend reserves of self-generated income

HM Treasury will provide Freedoms Bodies with budgetary cover (for both Resource and Capital spend) for the required use of reserves. It will be based on Freedom Body forecasts and made via Supplementary Estimates. The use of reserves in excess of the allocation will be considered an overspend for which Bodies must alert DCMS/relevant department as early as possible.

2. Freedom to invest non-grant income

Freedoms Bodies are free to invest non grant income in line with the relevant Charity Commission guidance on investments.

3. Exemption from the requirement to use the Government Banking Service

Freedoms Bodies are exempt from the requirement to use the Government Banking Service (GBS). They will continue to provide DCMS/relevant department (“The Department”) with the normal monthly forecasts including the amount of cash held in their bank accounts. They should also continue to seek help and guidance from the GBS to help negotiate value for money banking contracts.

Where Freedoms Bodies elect to open non-GBS accounts, formal HM Treasury approval is not required, but Bodies must inform The Department and provide them with balances held in these accounts at set times during the year as communicated to them by the Department.

4. The power to borrow through voted loans from sponsoring departments

Freedom Bodies have the power to borrow to access seed funding which can be used for cost savings measures and to develop revenue raising projects.

Loans will be made available to Freedom Bodies by The Department up to a limit of £60m per year (across all Freedoms Bodies) and no longer than 25 years in length.

DCMS will include all requests within its Supplementary Estimates return to HM Treasury. Freedoms Bodies may request loans during each financial year up until the Supplementary Estimates return is submitted. Cash can however be made available ahead of Supplementary Estimates as HMT approval at Supplementary Estimates is assumed if DCMS provides the necessary approval to the loan request.

Loan requests from Freedoms Bodies will require a single-stage business case submission to be approved by The Department. If the loan request forms part of a larger business case, the request should be incorporated into an appropriate business case stage (although no earlier than Outline Business Case) . The Department will review any loan requests at an appropriate Committee that aligns with the value of the request.

5. Favourable consideration of requests for additional budgetary cover to meet exceptional depreciation charges

In exceptional circumstances, the impact of depreciation may result in a breach of the HM Treasury ring-fenced budgetary total. The Department will ensure it retains sufficient cover for any known depreciation charges and will explore avenues to manage exceptional depreciation charges within the delegated control totals. It may be for example that requests for additional budgetary cover can be made outside of the supplementary estimates window.

In the unlikely event that this is not possible, the Department would ask HM Treasury to look favourably on any breach caused by these circumstances.

Freedoms Bodies should proactively notify their Department if such an event is anticipated, so that HMT can be informed and remedies can be explored.

6. Freedom to offer average pay awards in excess of caps set out in the Pay Remit Guidance

Freedom Bodies are not subject to the Pay Remit Guidance (“PRG”). However they shall continue to engage with their Sponsor Department during the process of making a pay remit application, particularly prior to completion. They shall also continue to provide outturn data to HM Treasury and adhere to all other Civil Service Pay guidance issued by HM Treasury and the Cabinet Office. This freedom can include multi-year pay settlements as long as they are affordable and this does not prejudice future spending reviews.

This Freedom may be paused under extraordinary future circumstances, and should be reviewed as part of Spending Reviews.

7. Freedom to opt out of the Principal Civil Service Pension Scheme for new starters

Bodies may close, or amend the eligibility criteria to restrict access to the Civil Service Pension Schemes (CSPS) for new members. Current active and non-contributory members will be allowed to continue to accrue and receive their respective benefits. The CSPS closes completely once the last active scheme employee leaves the organisation.

The decision to use this Freedom will be taken by the Body’s Board of Trustees.

To take advantage of this Freedom, Bodies should first consult with The Department, setting out the case for the proposed course of action. They must also confirm that:

(a) relevant statutory requirements have been followed; (b) agreed Trade Union/Management negotiating processes have been undertaken as part of the consultation with staff; (c) a reasonable number of alternative pension providers have been considered to ensure good value.

Following this process, the Freedom Body will need to liaise with the Cabinet Office and Government Actuarial Department (GAD). The decision to close, or restrict access to the CSPS to new starters may incur an “exit charge”. This charge will be determined by the GAD, based on the particular circumstances of the Freedom Body, and will take into account current and future scheme liabilities and the impact on the CSPS. The presumption is that the Freedom Body will pay the exit charge from its own funds and/ or reserves, although they may be able to access the voted loans fund for this purpose.

Spend control freedoms

8. Flexibility to opt in or out of central procurement

Freedoms Bodies may decide whether or not to use central procurement for all items of expenditure on a case by case basis. Where centralised procurement deals exist, Freedoms Bodies should satisfy themselves that any contract outside of these arrangements demonstrates better whole life value for money.

9. Exemption from advertising, marketing, and communications spend control

Freedom Bodies are exempt from the Cabinet Office’s central advertising, marketing and communications (AME) spending control.

10. Exemption from the commercial spend control

Freedoms Bodies are exempt from the Cabinet Office’s Commercial spend control approval processes. This does not, however, supersede the requirement to adhere to the Government Functional Standard and other Cabinet Office guidance for those Bodies that make grants using public funding.

11. Exemption from property spend controls

Freedoms Bodies are exempt from the control on property spend, including the requirement to seek approval for all new facilities management contracts and contract extensions.

12. Exemption from facilities management spend controls

Freedoms Bodies are exempt from the spend control on facilities management, enabling them to procure specialist services, and to do so independently and at pace.

Increases to delegated limits (new)

13. Approval for digital and technology spend

All public bodies are required to record all spend in a digital and technology pipeline as part of a joint Cabinet Office / departmental assurance review process. The control applies to digital spend over £100,000 and technology spend over £1 million.

For Freedoms Bodies, this threshold is increased to £10m for both digital and technology spend. This threshold will be reviewed as part of review of wider freedoms - in Q3 2024/25, or at the next Spending Review, whichever is sooner.

14. Approval for self-funded capital projects (DCMS Freedom Bodies only)

HM Treasury has increased DCMS’ Delegated Capital Expenditure Limit from £30m to £60m for majority-self-funded ALB capital projects. This avoids the requirement of Treasury Approval Points for any projects below £60m, but does not negate the requirement for DCMS approval.

Freedoms retired

The final group of Freedoms may be more accurately described as ‘service level agreements’ (SLAs). They were intended to help streamline the process of complex approvals processes for Freedoms Bodies. Following a review of these commitments, they were found to be largely redundant or irrelevant. As such they will be replaced in the manner described below.

Freedoms retired

The final group of Freedoms may be more accurately described as ‘service level agreements’ (SLAs). They were intended to help streamline the process of complex approvals processes for Freedoms Bodies. Following a review of these commitments, they were found to be largely redundant or irrelevant. As such they will be replaced in the manner described below.

  • HM Treasury commitment to respond to capital business cases within 28 days, and training to ensure business cases are proportionate and cost-effective.
    • To be replaced with departmental-led guidelines which clarify businesses case clearance processes, roles and responsibilities; these may include response time Service Level Agreements (SLAs).
  • Cabinet Office commitment to respond to redundancy and restructuring applications within two business days.
    • To be replaced with departmental-led process maps which clarify roles and responsibilities; these may include response time SLAs.
  • Pre-application guidance from HM Treasury to reduce the administrative burden from severance payment business cases and to achieve quicker decisions.
    • To be replaced with departmental-led process maps which clarify roles and responsibilities; these may include response time SLAs.

Schedule 1: List of Freedom Bodies

Department for Culture, Media & Sport (DCMS)

British Museum

Horniman Museum and Gardens

Imperial War Museums

Museum of the Home

National Gallery

National Museums Liverpool

National Portrait Gallery

Natural History Museum

Royal Armouries

Royal Museums Greenwich

Science Museum Group

Sir John Soane’s Museum

Tate Gallery

V&A Museum

Wallace Collection

British Film Institute

Historic England

British Library

Churches Conservation Trust

Department for the Environment, Food and Rural Affairs (Defra)

Royal Botanic Gardens Kew

Ministry of Defence (MOD)

National Army Museum

National Museum of the Royal Navy

Royal Air Force Museum

Schedule 2: List of Sponsor Departments

Department for Culture, Media & Sport (DCMS)

Department for the Environment, Food & Rural Affairs (Defra)

The Ministry of Defence (MOD)

Annex C: DCMS Commercial Activities and Reporting Requirements

The following outlines in full the commercial requirements of DCMS ALBs, as well as a list of mandated reporting requirements. This document provides additional detail to ALBs Framework Documents, in order to support their full compliance with commercial and procurement requirements.

A: Commercial requirements

Public Procurement Regulations

1. The ALB shall comply with any relevant UK or other international procurement rules and in particular the current Public Procurement Regulations (For Example but not exclusive to Public Contracts Regulations 2015 and Procurement Act 2023). Further, as a Central Government Authority, the ALB is subject to certain thresholds when tendering for a procurement opportunity.

Central government policy and processes

2. The ALB shall acquire goods and services through fair and open competition, in accordance with the Government Commercial Operating Standards (including the Outsourcing Playbook), delivering value for money through procurement, and operating in line with UK and other international law, including restrictions on state aid/subsidy controls.

3. Subject to the exemptions listed (‘Freedoms’) at Annex B, the ALB shall comply with current and future requirements on additional spend controls, delegated authorities and authorisations on procurement and leases as notified to them by the Department.

4. The ALB shall not be required to comply with the Cabinet Office Learning and Development Spend control Guidance, nor any of the caps or restrictions set out in it.

5. ALBs designated as a freedom body have flexibility to opt in or out of central procurement on a case by case basis. However, where possible and appropriate, the ALB shall utilise whichever Crown Commercial Services frameworks are relevant to its needs.

6. The ALB must support the wider Government Commercial Function’s strategies and programmes in their design, implementation and sustained application.

7. The ALB must embed all applicable current and future Procurement Policy Notes into its commercial operations. In particular, the ALB must:

  • Support the government’s SME agenda through appropriate procurement activity where this does not conflict with ALB’s Freedom body status.
  • Promote the inclusion of the Social Value Act and its associated principles in procurement activity wherever possible.
  • Comply with government transparency policies and commitments.

8. Support Commercial Procurement and Contract Management improvement and oversight initiatives including:

  • Contract Classification for all contracts
  • Internal spend control assurance and governance processes, aligned to the department and Cabinet Office Commercial Spend Control approval processes (subject to exemptions detailed at Annex B - ‘Freedoms’)
  • Pipeline reporting where relevant
  • Assurance and audit implementation and reporting
  • Contracts Finder compliance reporting
  • Contract KPI reporting for external public publication
  • Commercial Systems and Data improvement initiatives eg. CASIE

9. Attend Cabinet Office training programmes designed to raise commercial awareness and improve commercial capability, including Playbook and GCOS masterclasses, and Contract Management Capability Training.

Departmental policy and processes

10. Subject to the exemptions listed (‘Freedoms’) at Annex B, the ALB shall comply with departmental spend controls as set by DCMS Commercial.

11. In procurement cases where the British Museum is likely to exceed any applicable delegated authority limit, procurement strategy approval for the specific planned purchase must be sought from the DCMS Commercial Director.

12. Direct Award Contracts: The ALB must notify DCMS a minimum of 48 hours in advance of its intention to award a direct award contract the value of which exceeds the threshold set out. These requirements do not apply to purchases for collections, acquisitions, core public offerings, or subscriptions that support these (e.g. subscriptions to unique journals).

13. The ALB must adhere to requirements of its charitable status (where relevant), and inform the DCMS Commercial Director if there may be a conflict with public law and its charitable status.

Collaborative initiatives

The ALB shall:

  • Support all Commercial Procurement and Contract Management improvement and oversight initiatives from DCMS and the Cabinet Office.
  • Support collaborative procurement and commercial efforts across the department and its ALBs. This will include supporting the establishment of a DCMS Commercial Council or similar body, where such a group has been instituted, and wider commitments to support knowledge-sharing and training for staff involved in Commercial and Procurement activity across DCMS ALBs.
  • Support the formation and ongoing activities of a commercial function across the DCMS family of public bodies, through engagement with the DCMS Commercial team.
  • Engage with department and Government wide procurement initiatives that seek to achieve VfM from collaborative projects.

Grants and other bodies

14. If applicable, the British Museum shall comply with the government functional standard for the management of grants. These standards set expectations for the management of grants, and to promote efficient and effective grant making to ensure funding is used as intended and provides value for money through high quality delivery.

15. In circumstances where the ALB finds itself having oversight and assurance of other public bodies or the procurement activities of private bodies spending public money the ALB shall ensure, as far as is reasonably practicable, and in so far as it has legal authority to do so, that all such parties adhere to the principles of Managing Public Money including the encouragement of transparent and robust practices and compliance with any applicable law.

Management Information and Compliance

16. The department and the British Museum are committed to sharing information to ensure transparency and alignment.

17. The British Museum recognises that the department will at times need to request information on an ad hoc basis and/or with a short time frame as required. The British Museum must (within any reasonable timescale required by DCMS) supply any information requested by DCMS, and should proactively seek to provide DCMS with advance sight of events and publications which the government would take an interest in.

18. In addition to this ad hoc information and open lines of communication, DCMS expects ALBs to provide regular information as listed below at Part 2 (reporting requirements). The list is not definitive, and intended to enable advanced planning for periodic Departmental commissions.

B. Reporting requirements - Freedom Bodies

Commission title Timescale DCMS lead team Purpose
Consultancy Spend Control pipeline and compliance return (including nil returns) Quarterly Commercial For DCMS and the Cabinet Office to plan and keep track of the public sector consultancy contracts and approvals
Commercial Spend Control Pipeline return (including nil returns) Quarterly Commercial For the submission of the Departments quarterly Commercial Spend Control pipeline to Cabinet Office in accordance with Cabinet Office guidelines
Contract register To be kept updated and accessible if requested by DCMS Commercial For oversight of commercial liability and risk across sectors, categories and suppliers, if a contract register is available.
Government Commercial Operating Standards (GCOS) return If required / requested Commercial For the submission of the Department’s Government Commercial Operating Standards (GCOS) return and update against improvement plans.
Contracts finder compliance report Six months Commercial Transparency policy compliance reporting
Submission of procurement spend transactions to Bravo Annually Commercial To comply with Cabinet Office spend reporting requirements
Government Key Contracts Public KPIs return (including nil responses if not on CCS) If relevant - quarterly Commercial For the submission of the Department’s quarterly Key Contracts Public KPIs return to the Cabinet Office
Procurement pipeline for publication return (including nil responses if not on CCS) Quarterly Commercial For the submission of the Departments quarterly pipeline return for publication on GOV.UK
Social Value reporting return If required / requested Commercial To comply with Cabinet Office policy on Social Value reporting. Specifically at (a) pipeline (b) procurement strategy (c) Contract award (d) contract close subject to PPN06/2020</
Prompt Payment reporting for contracts Annually Commercial To ensure accurate reporting to Cabinet Office of in-scope contracts including any exclusions and exemptions requested
Return for the review of key metrics, targets and reports related to procurement, contract management and commercial resourcing Quarterly Commercial To benchmark procurement spend, compliance assessment to policy and provide data on economic effect of spend by Departments and PBs including 3rd party spend and commercial risk reporting.
Direct and Indirect SME spend Quarterly and Annually Commercial To support the Government’s SME Agenda and the DCMS SME Action Plan

C. Delegated financial limits

All delegations are subject to the requirement that spending proposals falling within Managing Public Money Annex 2.2, box A.2.2C should be referred to DCMS. These are:

  • Items that are novel, contentious, or repercussive, even if within delegated limits
  • Items that could exceed the agreed budget and Estimate limits.
  • Contractual commitments to significant spending in future years for which plans have not been set. Appropriate planning should be carried out to account for DCMS & HMT approval if required.
  • Items requiring primary legislation (e.g. to write off NLF debt or PDC)
  • Any item which could set a potentially expensive precedent
  • Where Treasury consent is a specific requirement of legislation. Please refer to Managing Public Money and Framework Agreements for further detail.

A breakdown of delegated financial limits can be found in the delegations letter, issued by DCMS to ALBs annually shortly after the start of each financial year.

  1. Refer to Schedule 1 at the end of this document ↩

  2. Refer to Schedule 2 at the end of this document ↩

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