SFO governance arrangements
New report finds significant improvement in SFO governance arrangements, though some issues still need to be resolved
A new HM Crown Prosecution Service Inspectorate report has found that the Serious Fraud Office (SFO) has achieved a fundamental shift in leadership and direction in the past four years
The report, released today, looked at whether SFO structures, procedures, leadership, accountability and direction are effective and efficient. It found a positive and tangible change to the poor organisational culture of the past since the appointment of the new Director David Green in April 2012.
However, inspectors found that the SFO could be more effective and provide better value for money if its core funding was raised and dependence on blockbuster funding reduced. The nature of blockbuster funding is leading to gaps in staffing and skills, with more than one in five SFO employees non-permanent (21 per cent).
The report also found that while the current governance structure has served the SFO well in addressing legacy issues, the arrangements need to change in line with best practice, to focus and streamline strategic decision making, clarify roles and responsibilities and free up the Director’s and other senior managers’ time. The report recommends a smaller management Board and the appointment of a Chief Executive Officer to achieve these benefits.
The report also recommends consideration of how independent challenge to case decisions could be enhanced.
Chief Inspector of HM Crown Prosecution Service Inspectorate Kevin McGinty said:
“Over the past four years, there has been an overhaul of the management structure, governance and direction of the Serious Fraud Office. However, it is now time for a reconstruction of the board and executive responsibilities and the establishment of clearer reporting lines and risk management.
“Serious consideration should also be given to pursuing a change to the funding model in order to provide better value for money. Whilst blockbuster funding has allowed the SFO to pursue cases it would not otherwise have had the resources to take on, increasing core funding would provide the SFO with the ability to build more capacity and capability in-house.”
“SFO cases are complex, lengthy and difficult, with huge amounts of information to analyse and there are often multiple paths that could be taken. The current Director recognised that challenge to the decision making processes is vital and built this function into the organisation’s structure. However, the report recommends that the SFO considers whether and how a degree of independent challenge might be incorporated.
Positive developments included:
- Better inclusivity of senior managers which has enabled a clearer direction and purpose to be set for the organisation
- Significant turnaround of staff engagement and morale.
- Better engagement with stakeholders
- More effective layers of quality control and risk assessment have also provided improved governance arrangements
However, the report made nine recommendations for improvement including:
- The SFO should consider pursuing a change to the blockbuster funding model and improve value for money awareness and measurement
- Consideration should be given to appointing a Chief Executive Officer
- Lines of reporting and delegation need to be established between committees and the board to improve clarity
- A diversity and values action plan needs to be developed
- More comprehensive risk management needs to be embedded
- The reduction in the size of the management board and establishing an executive management board to improve strategic direction
In preparing this report, a team of four inspectors reviewed extensive documentation and conducted thorough fieldwork in January this year. During this process, inspectors interviewed members of staff, stakeholders, board members and senior staff.