GovWire

The National Employer Advisory Board (NEAB) is a Non Departmental Public Body (NDPB) sponsored by the Ministry of Defence (MOD)that provides informed but independent advice to ministers, defence chiefs and the reserves community.

In April 2011, the Cabinet Office announced that all NDPBs would be reviewed at least once every 3 years.

These triennial reviews would have 2 key purposes:

• to provide a robust challenge to the continuing need for the NDPB, its function and form and it should be assessed against the governments 3 tests

• where it is agreed that the body will remain as an NDPB, to review the control and governance arrangements in place to ensure that the public body is complying with recognised principles of good corporate governance

The Cabinet Office directed that reviews must not be overly bureaucratic and should be appropriate in size and nature of the NDPB and should be conducted in a way that represents value for money for the taxpayer.

The review was conducted in 2 stages: stage one examined the key functions; and stage 2 considered the governance arrangements to ensure that NEAB was operating in accordance with the principles of good corporate governance.

The Memorandum of Understanding (MOU) describes the NEABs aims and objectives and its relationship with the Secretary of State. It describes the functions of the board and sets out the boards and the governments respective roles. The MOU will be reviewed when required, and at least every 5 years. Variations will be incorporated as circumstances change and will be agreed by the board and the Ministry of Defence.

Substantive changes will be made only with the approval of the Secretary of State.