Performance Review Committee Evaluation Questionnaire

Introduction

Committee members are required to complete this questionnaire annually as part of their committee evaluation process.

As a qualitative element is important in any assessment of performance, the questionnaire includes space for appraisers to add comments.

The questionnaire sets out some searching questions that should be relevant to the Performance Review Committee. When analyzing the results it is suggested the committee focus on areas where there is a broad agreement that improvement would be beneficial.

The questionnaire takes account of HM Treasury’s Corporate governance guidance and draws on private sector best practice

Objectives, strategy and remit

 
1.  The Committee has considered and approved an annual Operational Plan for the organisation that reflects its Vision.
2.  The Plan is well aligned to the organisation’s remit and its capabilities, i.e. its people, assets, intellectual property, and financial and other resources
3.  The Committee devotes quality time to reviewing the implementation of the Plan.
4.  The Plan is updated for any changes to the organisation’s remit or the external environment.
5.  Significant programmes and projects are clearly aligned to the Plan and fall within the organisation’s remit

Further comments on objectives, strategy and remit:

Performance Management

6.  Management regularly reports to the Committee on key outcomes and targets that flow directly from the Plan.
7.  The Committee gets early-warning signals of problems ahead that will adversely affect key outcomes, targets or financial performance.
8.  Management provides a thorough analysis of performance against targets and key outcomes, and discusses any necessary remedial action.
9.  The Committee takes collective responsibility for the performance of the organisation in relation to its remit
10.  There are no recent instances of where the Committee could not take appropriate action as a result of insufficient information reported to it.

Further comments on performance measurement:

Financial Management and Reporting

11.  The financial management information reported to the Committee facilitates overall performance monitoring.
12.  The Committee believes that the financial information currently provided highlights the key financial drivers of the organization.
13.  The Committee receives an explanation of significant figures and variances arising.
14.  The financial information provided to the Committee is prepared and/or validated by qualified finance professionals.
15.  Internal audit have, at least annually, reviewed the systems and processes used to produce the financial management information for the organisation.
16.  External audit have taken assurance through their review of the internal control environment and specifically the systems underpinning the production of financial management information.
17.  The Committee has been consulted on their information requirements.
18.  The narrative information provided to support the underlying data proved to be reliable and balanced in the past and the Committee is confident in the interpretation provided.
19.  Financial management information reported to the Committee provides a framework for exercising accountability over the different areas of the business.
20.  The Committee considers routine financial information at each Committee meeting.

Further comments on financial management and reporting:

Propriety, fraud and risk

21.  The Committee is satisfied that it receives full and timely notification of all significant losses, special payments or other leakage. The Committee takes appropriate action to address any weaknesses or failures.
22.  The organisation has a sound process for identifying and regularly reviewing its principal risks, and makes the necessary amendments in the light of changes in the internal and external environment. This process involves all parts of the organisation.
23.  The organisation receives regular reports on the organisation’s risk management and internal control systems that provide assurance over their operational effectiveness.
24.  The Committee takes full account of risk in its decisions, for example, in relation to proposed major projects and programmes.
25.  The Committee receives reliable projections of future cash flows and is confident that the available funding will enable the organisation to develop and operate as planned.
26.  The Committee is satisfied there have been no problems with regulatory and similar requirements, and that sound health and safety, employment and other practices are implemented to protect the organisation against unnecessary litigation and reputation risk.
27.  The Committee is aware of changing demand patterns and is confident that these can be met from the resources available and within the organisation’s statutory remit.
28.  The Committee is aware of the organisation’s information needs. Any exceptions to best practice over data acquisition, usage, storage and destruction are reported.
29.  No substantial, unexpected problems have emerged which the Committee should have been aware of earlier.

Further comments on propriety, fraud and risk:

Presentation of Financial Information

30.  The financial reports include a narrative commentary which summarises the key points, changes and actions for the Committee members’ attention.
31.  Financial management information is presented in a consistent/standardised format.
32.  The information is presented in a way that is easily accessible and easy to understand.
33.  The narrative content is concise, with jargon and technical terms avoided or explained.
34.  The author and owner of the narrative is clearly identified.
35.  The Committee feels that it is provided with an appropriate (i.e. not excessive) level of information.
36.  The Committee can easily understand the financial information.
37.  The Committee considers that its role in respect of financial management is appropriate.
38.  Committee members consider that they are able to challenge the financial management information provided to them.
39.  The Committee believes that it currently receives sufficient financial and operational performance information to support its role and good decision making.

Further comments on presentation of financial information:

The boardroom

40.  The Committee is cohesive and combines being supportive of management with providing appropriate challenge.
41.  The Chair leads meetings well with a clear focus on the big issues facing the organisation and allows full and open discussion before major decisions are taken.
42.  Working as a team, the Committee has the right blend of skills, expertise and personalities, and the appropriate degree of diversity, to enable it to face today’s and tomorrow’s challenges successfully.

Further comments on the boardroom:

The Committee needs the support given by appropriate skills and expertise to carry out their role effectively

The Committee members will bring a wide variety of skills and expertise to the organisation and the precise balance in role between the Committee and its executive team will vary from organisation to organisation. The Committee may be able to collectively use that expertise to challenge effectively the financial information that is presented to it, or it may consider that it needs additional support to take on that role.

43.  The Committee considers that its role in respect of financial management is appropriate.
44.  Committee members consider that they are able to challenge the financial management information provided to them.
45.  The Committee believes that it currently receives sufficient financial and operational performance information to support its role and the decisions it needs to make.

Please comment:

Reflections

46.  In my opinion, the questionnaire has addressed all issues in respect of the Committee’s effectiveness.
47.  Overall, my questionnaire responses accurately portray the Committee’s performance.

Further reflections: