Commentary on provisions of Act Schedules Schedule 1: The Advanced Research and Invention Agency
Paragraph 1 sets out that ARIA is separate and distinct from the Crown. ARIA’s property does not belong to, nor is being held by ARIA on behalf of, the Crown.
	Paragraph 2 describes ARIA’s membership. Executive members include the Chief Executive Officer, the Chief Financial Officer and between two and five other members. Non-executive members comprise the Chair, the Government Chief Scientific Adviser and such other members which the Secretary of State may appoint. The board must comprise a majority of non-executive members as a matter of good governance.
	Paragraph 3 explains that executive members are appointed by the chair after consultation with non-executive members. The Secretary of State may refuse consent for the appointment only if the Secretary of State considers it necessary or expedient in the interests of national security. The first Chief Executive Officer is to be appointed by the Secretary of State. This paragraph makes provision requiring executive members to be members of ARIA staff (either employees or secondees).
	Paragraph 4 explains that the Chief Executive Officer is appointed for a fixed term of not more than five years. A person cannot be appointed as the Chief Executive Officer more than twice.
	Paragraph 5 states that an executive member ceases to be a member upon ceasing to be a member of ARIA’s staff and may resign from office by notifying the chair. The Secretary of State may remove an executive member from office if necessary or expedient in the interests of national security.
	Paragraph 6 states that, subject to the provisions of Schedule 1, non-executive members may hold and vacate office in accordance with the terms of their appointments. Non-executive members may resign by notifying the Secretary of State. The Secretary of State has authority to remove a non-executive member on the grounds of continuous period of absence of more than six months without permission, inability or unfitness to carry out the functions of the office, or such other grounds as the Secretary of State considers appropriate. This paragraph does not apply to the Government Chief Scientific Adviser (GCSA) as an ex officio non-executive member.
	Paragraph 7 sets out that ARIA must pay non-executive members such remuneration as the Secretary of State may determine. ARIA must pay, or make provision for paying, such sums as the Secretary of State may determine in respect of allowances or expenses. Where a person ceases to be a member of ARIA, ARIA must pay compensation of an amount determined by the Secretary of State if he or she determines that the person should be compensated because of special circumstances.
	Paragraph 8 explains that ARIA may, subject to paragraph 3, appoint employees and make other staffing arrangements as it considers appropriate, including secondments to ARIA. Sub-paragraph (7)(a) provides that the Secretary of State has power to determine those matters relating to the first Chief Executive Officer which are mentioned in sub-paragraphs (2) to (6) including remuneration and terms of employment. Sub-paragraph (7)(b) confers responsibility on the chair to determine, with the consent of the Secretary of State, after consulting with other non-executive members, matters relating to any other executive members (including future Chief Executive Officers). Sub-paragraph (7)(c) confers responsibility on ARIA to determine, with the consent of the Secretary of State, matters relating to any other employees or secondees who are not members.
	Paragraph 9 provides ARIA powers to establish committees, which may in turn establish sub-committees. These committees may include persons who are neither members of ARIA nor members of ARIA’s staff. ARIA may pay allowances and expenses to any person who is a member of a committee or sub-committee but is not a member of ARIA or a member of ARIA’s staff with consent of the Secretary of State.
	Paragraph 10 allows ARIA to determine its own procedures. It states that the quorum for a meeting of the board is half the number of its members. Paragraph 11 states that the Secretary of State may by regulations make provision about the procedures to be adopted for dealing with conflicts of interests of members of ARIA or members of committees. Paragraph 12 states that the validity of proceedings of ARIA, or a committee or sub-committee, is not affected by a vacancy or defective appointment.
	Paragraph 13 enables ARIA to delegate functions to individual members, staff, or committees or sub-committee to the extent and on the terms that it determines.
	Paragraph 14(1) requires ARIA to maintain financial accounts and clear records in relation to them. It also requires ARIA to prepare a statement of its accounts for each financial year. Sub-paragraph (2) requires that ARIA’s annual statement of accounts complies with directions provided by the Secretary of State as related to its contents and form, and methods and principles of preparation. Sub-paragraph (3) requires that copies of the accounts must be sent by ARIA to the Secretary of State and the Comptroller and Auditor General as soon as is practicable after the end of the financial year to which the statement relates. Sub-paragraph (4) requires the Comptroller and Auditor General to examine, certify and report on each statement of accounts and provide a report and certification to the Secretary of State. Sub-paragraph (5) requires the Secretary of State to lay a copy of ARIA’s report and certified statement before Parliament.
	Paragraph 15 requires ARIA to produce a report on the exercise of its functions during each financial year. The annual report is to be produced and finalised as soon as is practicable after the end of the financial year and sent to the Secretary of State. The Secretary of State is required to lay the report before Parliament.
	Paragraph 16 sets out that on those occasions where ARIA’s seal is being used, its use needs to have been authorised by the signature of a member of ARIA or the signature of another person authorised by ARIA. This provision does not apply if the document signed with the law of Scotland.
	Paragraph 17 should be read alongside section 2 of the Act. It allows ARIA to do anything necessary or expedient for the purpose of, or in connection with, the exercise of its functions. In particular, it allows ARIA to borrow money, acquire and dispose of land, accept gifts, form and participate in partnerships and joint ventures, and form companies. This list is non-exhaustive. These powers may be subject to conditions which are attached to grant funding given by the Secretary of State to ARIA under section 4.
	Paragraph 18 states that references to the GCSA include a person for the time being acting as such. References to staff relate to ARIA employees or those seconded to it. This paragraph also permits the Secretary of State by regulations to change references to the GCSA in the Schedule in the event that the office of GCSA is renamed or abolished, for example.
	Paragraph 18 also provides a description of ‘financial year’. The financial year is the period from the date that ARIA is established to the second 31 March following that date. Each subsequent period of 12 months from that point constitutes a new financial year.