Big Lottery Fund

This section describes the Code of Best Practice for Board and Committee Members. This follows advice by the Cabinet Office in January 1997 for all executive NDPB’s in the light of advice from the Nolan Committee.  The Big Lottery Fund is required by its sponsor Department to adopt such a Code.

Board Members have corporate responsibility for ensuring that the Big Lottery Fund complies with any statutory or administrative requirements for the use of public funds. Other important responsibilities of Board Members are:

• ensuring that high standards of corporate governance are observed at all times;
• establishing that the overall strategic direction of the organisation is within the policy and resources framework agreed with the Minister for the Cabinet Office
• ensuring that the Fund operates within the limits of its statutory authority and any agreed delegated authority and in accordance with any other conditions relating to the use of public funds;
• ensuring that in reaching decisions, the Fund has taken into account any guidance issued by the Cabinet Office, DCMS or the Treasury;
• appointing a Chief Executive or senior full time official to the Fund;
• ensuring that within the Fund a distinction is made between strategic planning and management, which are the responsibility of the Board, and day-to-day management issues which have been delegated to the Chief Executive.

View the Board Members job description 
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The Role Of The Board Chair

The Chair has particular responsibility for providing effective strategic leadership. The Chair’s job description can be found here.

The Chair, together with the Chief Executive, ensures that all Board Members, when taking up office are fully briefed on the terms of their appointment, and on their rights, duties and responsibilities. Communication between the Board and sponsor Minister will normally be through the Chair. Nevertheless, an individual member has the right of access to Ministers on any matter which they believe raises important issues relating to their duties as a Board Member.  In such cases the agreement of the rest of the Board would normally be sought.

The Vice Chair shall fulfil the responsibilities of the Board Chair in their absence.

The Corporate Responsibilities Of Board Members

Board Members have corporate responsibility for ensuring that the Big Lottery Fund complies with any statutory or administrative requirements for the use of Lottery funds. The Board Members’ job description can be found here.

Responsibilities of Individual Board And Committee Members

Individual Board and Committee Members should, like others who serve the public, follow what are described as the ‘Seven Principles of Public Life’ set out by the Committee on Standards in Public Life. These, together with the Cabinet advice are can be found here 
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Board and Committee Members should conduct all dealings with the public in an open and responsible way, bearing in mind the Citizens’ Charter and Code of Practice on Access to Government Information. They will want to ensure that Lottery funds are seen to be allocated to good effect, with propriety and without grounds for criticism that such funds are being used for private, partisan or political purposes. The Treasury document ‘Regularity and Propriety’ can be made available to all Members on joining the Big Lottery Fund.

Although any legal proceedings initiated by a third party are likely to be brought against the Big Lottery Fund, in exceptional circumstances, proceedings (civil or in certain cases, criminal) may be brought against the Chair or individual Board and Committee Members. For example, a Board or Committee Member may be personally liable if they make a fraudulent or negligible statement which results in loss to a third party. A Board or Committee Member who misuses information gained by virtue of their position may be liable for breach of confidence under common law or under insider dealing legislation.

However, the Government has indicated that individual Board or Committee Members who have acted honestly and in good faith will not have to meet out of their own personal resources any personal civil liability which is incurred in the execution or purported execution of their Board or Committee function, save where the person has acted recklessly. The Board will indemnify any Member so affected.  Board or Committee Members who want further advice on this issue should consult the Chief Executive.

Role of Individual Committee Members in Grant Making

Discussion of the Portfolio by the Committee

All Committee Members are expected to read the details of all the applications included in the assessment summaries and can discuss any of the applications they wish at the meeting. They are encouraged to contact the officers concerned for further information or to raise queries prior to the meeting. This allows the officers time to research information in advance.

Where a Committee Member has declared a financial interest or has a position of influence within a senior management team or on the board as a director or a trustee of an organisation being presented for consideration that Member will not be allowed sight of the relevant papers. The Member should also withdraw during discussion of that item.

Committee Members are also free to raise any issues for discussion at the meeting itself. Where it is not possible to provide the relevant information at the meeting, the Committee should consider whether to:

1. defer the application to the next meeting (where there is a subsequent meeting);
2. delegate the final decision to the Chair of the Committee, in discussion with the Country Director;
3. make a decision in the absence of the information.

Additional Information provided by Committee Members

Wherever possible Committee Members should provide any significant additional information they have on applications to the senior officers concerned in advance of the relevant committee meeting, so that its implications can be properly evaluated by officers and made available to other Committee Members.

Where information is provided during the course of a committee meeting by a Committee Member which may make the Committee inclined to disagree with the assessment provided by officers and is considered to be potentially significant, it may be necessary to defer consideration for its accuracy to be checked with the applicant or with other relevant agencies – and the application can then be re-assessed.  The Committee Chair should make the final decision as to whether such deferral is necessary.

Access to Privileged Information Regarding an Application

Committee Members should not normally use privileged information which might improve or reduce an applicant’s chances of success.  However, if the information is relevant to a current application and is objective and substantial such that it might affect the decision-making process, the Member should inform the Committee Chair and the relevant senior officer, in confidence, before the meeting so that the appropriate action (for example, deferral) can be considered and recommended to the Committee.

Committee Members have a responsibility to maintain confidentiality. Whilst the Big Lottery Fund is open about its decision-making and offers feedback to applicants, it is important that it does so in a structured way.  Members must respect the confidentiality of both the information in the portfolio and the matters discussed in the committee meeting.

Personal Links

Board and Committee Members will have been appointed partly because of their experience across various sectors of the community or bodies. If a Member is on the board or committee of an organisation which might apply for a grant or benefit from grants from the Fund (say as an adviser or supplier) or is employed by such an organisation, he/she must avoid being drawn into detailed discussions on or involvement with any particular application, either in the context of the Fund or the organisation. It is important that Members bear in mind the following:

• Offering advice to applicants
  Board and Committee Members are likely to be involved in a range of organisations, including those in the voluntary and community sector and will inevitably be asked to explain or give advice on the Big Lottery Fund’s application process. They may provide general advice, advice on published information about policies and procedures and arrangements to outside bodies but, under no circumstances, should they give detailed guidance to any applicant organisation (or comment on an individual application), no matter to which country or region it may refer or the impression to such bodies that any approach would find favour over other competing bids.

• Involvement in preparing an application
  Board and Committee Members must not be involved in preparing an application or in acting as a signatory, contact person or referee.  If a Member is still on the board or committee of an organisation which is applying for a grant, they must avoid being drawn into any detailed discussions on a particular application either in the context of the Big Lottery Fund or the organisation.  Any involvement on the board or committee of an organisation would be a declarable and disqualifying interest. The Member involved would need to withdraw from the meeting.

• Lobbying
  Board and Committee Members should not lobby Big Lottery Fund staff or other Members about an application. If Members themselves are lobbied by applicants or grant holders, they should advise the relevant senior officers. Members should not take up a case on behalf of an organisation.

• Committee decisions
  Board and Committee Members should not inform applicants of committee decisions. This should be left to officers.

Financial responsibilities of the Board/Country Committees

Members of the Board have a duty to ensure that Lottery funds are properly safeguarded and that, at all times, the Fund conducts its operations as economically, efficiently and effectively as possible, with full regard to the relevant statutory provisions and to “Government Accounting”. The Chief Executive, as Accounting Officer, will advise the Board in this respect. Members of the Board are responsible for ensuring that the body does not exceed its powers and functions, whether defined in statute or otherwise, or through any limitations on its authority to incur expenditure.

The financial regulations and delegations set the framework of accountability and responsibility for financial management of grant and operating cost budgets within the Big Lottery Fund and set out the specific responsibilities of the Board and Country Committees in terms of grant budget virement, treatment of year end balances, grant awards, variations to grant awards and withdrawals. The Board has corporate responsibility for ensuring that the Fund complies with statutory and administrative requirements for the use of public funds.

The Fund reports to the Secretary of State on the exercise of its functions through the publication of the Annual Report which the Secretary of State is required to lay before Parliament. The Chair of the Fund and its Chief Executive will appear before the Culture Media and Sport Select Committee to answer questions, although any Board Member or official may be required to attend.