FCO Board: Terms of Reference and Schedule of
Reserved Decisions
Terms of Reference
The role of the Board is to provide corporate leadership to the FCO in delivering the policies
and services decided by Ministers.
The Board fulfils that leadership role by:
1)
Ensuring the organisation delivers the foreign policy priorities, PSA targets and service
delivery targets set by Ministers;
2)
Taking strategic decisions on the FCO’s corporate agenda, including change.
3)
Effectively allocating and managing resources, in line with the foreign policy priorities;
4)
Communicating the FCO’s purpose, priorities and vision to staff and other stakeholders;
5)
Monitoring and improving performance and accountability;
6)
Protecting and enhancing the FCO’s reputation for professionalism, effectiveness,
integrity and efficiency.
FCO Board Terms of Reference & Schedule of Reserved Decisions
Schedule of Reserved Decisions
1)
The role of the Board is to provide corporate leadership to the FCO in delivering the
policies and services decided by Ministers. The way in which the Board fulfils that
leadership role is set out in the Board’s Terms of Reference.
2)
Six Board Committees (Finance, Estates, IT, Change, Human Resources and Audit &
Risk) support the Board in its delivery of the policies and services decided by Ministers.
Their terms of reference set out the extent of their delegated decision-taking mandate.
The No 1 Board, which is responsible for senior staff appointments in the FCO,
considers succession planning for the Board and other senior management positions.
3)
The Board will at least yearly approve the FCO’s:
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Annual operating and capital expenditure budgets;
Budget mid-term review, including programme expenditure;
Spending round bid / internal resource allocation round (alternate years);
Main themes for its Departmental Report;
Board’s objectives and assess its performance against them.
And also:
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4)
Hold senior responsible owners to account for progress on foreign policy priorities,
PSA targets and key programmes and projects;
Review the security of the FCO’s most vulnerable Posts;
Advise the Accounting Officer on those aspects of the FCO system of internal
control that are outside the Audit & Risk Committee's remit;
Receive an annual report from DG Finance on FCO Services Trading Fund
Review Health and Safety arrangements
In addition, the Board will regularly:
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Review, maintain and report on a sound system of risk management through the
Top Risks Register;
Monitor financial performance against budget through the Key Performance Report
and ensure that any necessary corrective action is taken;
Monitor progress on current high priority issues, including the progress of IT roll-out
and the delivery of benefits;
Approve decisions taken by the Board’s Finance, Human Resources and Change
committees and note decisions taken by the Estates and IT Committees and reports
from the Audit and Risk Committee;
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FCO Board Terms of Reference & Schedule of Reserved Decisions
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5)
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Approve the minutes of its own meetings, and communications which stem from
them.
As appropriate, the Board will also expect to decide:
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6)
Review diversity strategies and action plans for ensuring that the organisation is
legislative compliant and is actively seeking out areas of discrimination and
developing initiatives to remove barriers to inclusivity;
The pay remit for the delegated grades;
Any major capital contracts or change programmes;
Any expenditure over £10 million1 or any project deemed high risk;
Communication of the FCO’s foreign policy priorities and corporate issues;
Issues with major reputational implications;
Procedures for managing the relationship with and oversight of the FCO’s NonDepartmental Public Bodies;
The FCO’s corporate governance arrangements2;
Post openings and closures2.
The Secretary of State’s responsibility for issues of corporate governance is set out in
the 1991 Diplomatic Service Order in Council and the HMT Code of Good Practice for
Corporate Governance in Central Government Departments.
Expenditure over £20 million requires approval by the Secretary of State
Requires approval also by the Secretary of State
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