Minutes

Minutes of the meeting of the Corporate Governance Committee of the Metropolitan Police Authority held on 22 March 2007 at 10 Dean Farrar Street, Westminster, London SW1H 0NY. (The Committee was inquorate from item 10).

Present

Members

• Toby Harris (Chair)
• Jennette Arnold (items 1-9)
• Rachel Whittaker
• Karim Murji was also present (items 1-11)

MPA officers

• Annabel Adams (Deputy Treasurer)
• Ken Gort (Assistant Director, Internal Audit)
• Ken Hunt (Treasurer)
• Alan Johnson (Policy Officer, Human Resources)
• Julie Norgrove (Deputy Director, Internal Audit)
• Surinder Purewal (Assistant Director, Internal Audit)
• David Riddle (Deputy Chief Executive and Deputy Clerk)
• Peter Tickner (Director, Internal Audit)
• Ruth Hastings Iqball (Committee Section)

MPS officers

• Julie Buckingham, (Inspection, Liaison and Analysis Unit)
• Nick Chown, (Director, Risk Management)
• Simon Hart, (Director of Business Development, Finance Services)
• Nick Kettle (Head, Safety and Health Risk Management)
• Paul Madge (Director HR People Development and Services)
• Anne McMeel (Director of Strategic Finance)
• Stephen Rimmer (Director, Strategy, Modernisation and Performance)
• Wendy Tournieri (Strategy Unit)

Co-opted member

• Linda Duncan (Head of Governance Services, Hyman Capital Services Limited)
• Richard Stephenson (Director, Group Health, Safety and Environment, Transport for London)

Also in attendance: Michael Haworth–Maden (District Auditor, Audit Commission) and Martin Searle (Audit Manager, Audit Commission)

63. Apologies for absence

(Agenda item 1)

No apologies for absence were received.

The Committee had met at City Hall, because there was no access to the MPA’s offices in Dean Farrar Street due to the unsafe condition of the building opposite following its partial collapse at around 4 pm on Wednesday. The Chair asked how the MPA’s resilience and contingency plans had worked. The Deputy Chief Executive replied that he felt the immediate evacuation of the building had went well. No member of staff had been injured and the MPA’s offices were undamaged. The MPA’s Business Continuity Board had met on Thursday and was planning to meet again that day. The Chair of the Authority had also attended the meeting. The Board had learnt that the MPA would be unlikely to return to its offices for two weeks. However, temporary working space would be available in New Scotland Yard, Empress State Building and at the Regus office suites in Broadway. Staff with computers had email access to the MPA’s computer system and could also work at home. If the situation continued for more than two weeks, further office space would be found. The MPA’s annual meeting was due to be held at the end of the month and accommodation for that was being sought. Superintendent Terry, who was ‘Gold’ for the MPS operation relating to the incident had met with the MPA’s Business Continuity Board and been impressed by its plans. In answer to questions, members were informed that the only entrances to the MPA’s officers were on Dean Farrar Street. This had led the Board to reconsider their suitability, especially as the lease was ending in four years. The Chair request that a survey be undertaken of staff on their reaction to the contingency plans.

Resolved – That staff be surveyed on their reaction to the contingency plans.

64. Declarations of interests

(Agenda item 2)

No declarations of interest were received.

65. Notes of the Corporate Governance Committee (part 1) - 22 March 2007

(Agenda item 3)

At agenda item 4, it was noted that Richard Stephenson, co-opted member, had not yet received a copy of the Bomel MetAIR report. It was requested that a copy be forwarded to him. In relation to agenda item 16, the Deputy Chief Executive confirmed that he had written to the Deputy Commissioner, and that a copy of the letter had been sent to the Director, Strategy, Modernisation and Performance.

Resolved – That the notes of the inquorate meeting of the Corporate Governance Committee (Part 1) held on 22 March 2007 be agreed and the recommendations therein ratified.

66. Update on MPS health and safety performance

(Agenda item 4)

(This item was heard after items 5 and 6). The Committee received an update on health and safety performance including an analysis of the injuries reported in the MPS between April 2005 and March 2007. Overall, the MPS had seen a reduction in the number of injuries reported for financial year 2006/07 when compared that for 2005/06. The report also contained at appendix 3, a revised draft MPS/MPA Corporate Health and Safety Policy that had been endorsed by the MPS’s Strategic Health and Safety Committee.

Members asked if there were any noticeable trends of injuries clustered in specific commands. They were informed that MetAir, the computer programme used by the MPS to record accident data, was unable to provide this information against business Groups and this shortfall had been previously brought to the attention of this committee. However, they were assured clusters, if they occurred, should be recognised when Operational Command Units reviewed their own local data. The committee requested that the explanation given for figure 4 in the report was clarified to reflect that the number of assaults on PCSOs had risen although the rate had fallen. Members noted the improvement to the presentation of the data and requested that it continued to be presented in this way in future reports. They asked about the health and safety issues raised by raids on cannabis factories and welcomed the proposed Smoking Special Notice in advance of the new Smoking Regulations. The limitations of MetAir meant that that any differences due to age or ethnicity could not readily be identified. Trend data in relation to gender could however be extracted and analysed as required for specific reports if requested by the committee.

In relation to the Corporate Health and Safety Policy, members noted the omission of Chief Police Officers Staff Association (CPOSA) from the staff organisations mentioned. It was noted that the term ‘MPS Building’ was used in the policy document despite the majority of the estate MPS buildings being owned by the MPA, however, after debate it was agreed that it was appropriate to use the term ‘MPS building’. The Head, Safety and Health Risk Management, agreed to amend the Policy in response to a number of minor observations. The Deputy Chief Executive noted that the MPS had accepted the submission of an annual letter of assurance by the Commissioner and welcomed this. He also noted that the revised Policy had a greater definition around the roles of the MPA and MPS. He added that the MPA had its own policy, which would be updated on similar lines to that produced by the MPS.

Resolved - That the draft MPA/MPS Corporate Health and Safety Policy be endorsed, subject to Equality Impact Assessment (EIA), MPS Management Board approval and the amendments requested.

67. Statement of Internal Control

(Agenda item 5)

Members received a report providing details of the statement of internal control to be included in the statement of accounts for 2006/07. The MPA was required to include a Statement of Internal Control in its financial statements. This would include details of the system of internal control and risk management, the key controls and how effectively they were being deployed, highlighting any significant internal control issues and the relevant actions being taken to address them.

In relation to paragraph 3 of Appendix 1 members noted that it was the members, not the MPA Senior Management Team, who were responsible for establishing the internal vision. In the same paragraph it was felt that the MPA was not responsible for endorsing the Met modernisation Programme but for scrutinising and agree its direction of travel. The MPA’s Statement of Internal Control stated that the Co-ordination and Policing Committee were responsible for all human resource issues. No reference was made of the Remuneration Sub Committee or the Human Resources Oversight Board. It was also felt reference should be made to the fact that the MPS’s Annual Training Programme was approved annually by the MPA.

The Director, Risk Management, reported that the final version of the MPS’s Statement on Internal Control would be slightly different to that appended at appendix 2 of the report.

Resolved – That

1. the latest draft of the MPS Statement of Internal Control for 2006/07 be noted; and
2. the MPA’s Statement of Internal Control to be included in the statement of accounts for 2006/07.

68. MPA accounts for the year ended 31 March 2007

(Agenda item 6)

This report presented the Authority’s draft set of accounts for 2006-07, which were subject to audit. It identified key features of the accounts and explained the structure of the statements. The accounts would be presented at the next full Authority with any comments from this Committee.

Members scrutinised the strengths and weaknesses of the balance sheet, in particular the level of reserves held by the Authority and requested more clarity on vulnerabilities contained within the accounts and a greater sense of the better position the accounts were now in. The Treasurer explained the steady improvement that had been made in the strength of the balance sheet, particularly the level of uncommitted reserves and commented that a review of the financial risks facing the Authority had been prepared for the last Co-Ordination and Policing Committee justifying the level of balance sheet reserves now being held. He explained that, with the support of members, there had been positive movement in the stated policy of achieving uncommitted reserves in the range of a minimum of 1.5-2% of net revenue expenditure, as and when conditions permitted. This level of reserves was necessary because, amongst other matters, unexpected major police operations had been seen to be extremely expensive. A report on this had been presented to the Co-ordination and Policing Committee on 7 June. The Treasurer undertook to provide Jeannette Arnold, who was not a member of that Committee, with a copy. Members asked about ‘national police services’. The Treasurer explained that the figures quoted on page 27 excluded funding and expenditure for ACPO Terrorism and Allied Matters counter terrorism policing activity which had passed through the MPA accounts but were not included in the income and expenditure account. The Treasurer corrected the figure shown at paragraph 23 of the report to £8.7 million. In answer to questions about the lack of movement of earmarked and general reserves, the Treasurer stated that the MPS had already been requested as part of the budget review, to report by October on the opportunity for unspent earmarked reserves to be transferred into the general reserve.

The Treasurer was asked to draw attention to the Statement of Internal Control, comment that the Committee endorsed the general level of the reserves and note the change in the new pensions fund in the report on the statement of accounts to be submitted before full Authority.

Resolved – That the draft statement of accounts 2006-07 be conveyed to the full Authority with the Committee’s comments.

69. External audit plan 2007/08

(Agenda item 7)

Members received a report containing the Audit Commission’s external audit plan for 2007/08. It was noted in paragraph 2 of section B of the report that the audit fee was ‘decreasing’ not ‘increasing’ and that the Audit Commission would ‘not’ be charging for grant claim verification work. In introducing the plan, the District Auditor stated that it had been agreed with the MPA and discussed with MPS’s Management Board. The Director, Strategy, Modernisation and Performance, stated that the Management Board disagreed with the Audit Commission over its comment that “despite significant performance improvements the MPS has yet to demonstrate fully a cohesive performance management framework.” He added that the Management Board was concerned that the Audit Commission would be repeating the HMIC’s baseline assessment audit. The District Auditor stated that that the HMIC and Audit Commission integrated their audits.

Resolved – That

1. the Audit Plan be received; and
2. the 2007/08 audit fees be approved.

70. Internal Audit annual report 2006-07

(Agenda item 8)

The report at Appendix 1 summarised the work of Internal Audit for the year 2006/7, and gave the opinion of the Director of Internal Audit on the adequacy and effectiveness of control within the MPS, which was that it continued to fall below an acceptable standard. The report also commented on the effectiveness of MPA Internal Audit in meeting the requirements of the Accounts and Audit Regulations 2003 (as amended 2006).

The Director, Internal Audit, informed members that his staff had completed 64 audits but, disappointingly, the average scores had remained the same as last year. Correct processes were usually in place, but were often not adhered to or followed too late. He added that formal responses to audits by the MPS were slow, delaying their completion. The Director, Strategy, Modernisation and Performance, stated that the MPS’s Management Board would respond formally to the Director’s report, however its members felt that insufficient weight had been given to the progress the MPS had made. It felt that the corporate framework had improved and that the MPS’s Investment Board was an exemplar of what had been achieved. Internal Audit should have given more weight to the directional improvement that had yet to be reflected in the audit scores, the methodology of which it questioned. Further evidence of improvement would be provided in the Management Board’s response. These points were echoed by the Director of Strategic Finance. The Director of Internal Audit responded by stating that the audit methodology had been shared with the MPS. The Director, Strategy, Modernisation and Performance, added that he would like to see an audit plan agreed with the Authority that made the best use of all audits. The Director of Internal Audit noted that, unlike other audit programmes, the Internal Audit Programme was agreed with the MPS a year in advance.

The Chair stated that he would welcome the MPS response to the Director of Internal Audit’s annual report and that it should be presented to the Committee at its next meeting. He added that he was pleased that two members of the MPS’s Management Board were present today – a first, and a demonstration that the MPS was taking their cooperate governance function more seriously. He requested that the MPS respond more speedily to audits by Internal Audit in future. The Chair also requested that the Director’s reservations be reflected in the Statement of Internal Control.

Resolved – That

1. the draft Annual Report of the Director of Internal Audit be approved for circulation to all members of the Authority.
2. it be confirmed that MPA Internal Audit provided an effective audit service to the Authority in 2006/7; and
3. the MPS’s Management Boards response be received at the next committee.

71. High-risk audit recommendations

(Agenda item 9)

This report and its exempt appendix (item 14) confirmed the status of outstanding high-risk accepted recommendations made by MPA Internal Audit as at the end of May 2007, and provided details of ongoing work to enhance the process by which the MPS respond to audit recommendations.

Resolved – That the status of all outstanding high-risk recommendations made in relation to MPS control systems by MPA Internal Audit be noted.

72. Business Risk Management Team update

(Agenda item 10)

Members received a report on progress made by the MPS in the areas of corporate governance, business risk management and insurance management. The Chair welcomed the progress made in this area. In relation to insurance management the Director, Risk Management, stated that the insurance industry were becoming more interested in providing the MPA/MPS with liability insurance. A member noted that the IPCC report on the policing of the Countryside Alliance demonstrations had been published. The Deputy Chief Executive agreed a report should go to the Co-ordination and Policing on the reports recommendations in relation to health and safety and the policing of public order events.

RECOMMENDED – That

1. progress to end April 2007 on corporate governance, business risk management, and insurance management be noted; and
2. progress as captured by the Audit Commission / ALARM risk management Key Performance Indicator be noted.

73. Annual report of the Corporate Governance Committee

(Agenda item 11)

Members received a report summarising the work of the Corporate Governance Committee for the year 2006/07. Members requested that paragraph 3 be amended to reflect the contribution of the Committee’s two Co-opted members.

Resolved – That, subject to the amendment suggested above, the report be agreed as representing the Committee’s work over the last year for submission to the Authority.

74. Exclusion of press and public

(Agenda item 12)

Resolved – That the press and public be asked to leave the meeting during discussion of the remaining item of business because exempt information as defined in of Part 1 Schedule 12A of the Local Government Act 1972 (as amended) was likely to be made known.

Summary of items

75. Notes of the Corporate Governance Committee (Part 2) – 22 March 2007

(Agenda item 13)

The notes of the inquorate meeting of the Corporate Governance Committee (Part 1) held on 22 March 2007 were agreed and the recommendations therein ratified.

76. High-risk audit recommendations – appendix 1

(Agenda item 14)

Members received a progress report on outstanding Internal Audit recommendations. The Chair noted that some of the incomplete recommendations were very old. He suggested that if the recommendations were never going to be completed, perhaps because matters had moved on, the MPS should admit it and write a report to that effect. The, Director, Strategy, Modernisation and Performance, agreed to this and undertook to write to members within a month to this effect.

77. Health & safety audit – sports clubs

(Agenda item 15)

A report was received updating the MPA on the progress the sport clubs had made since January’s committee on the recommendations contained within the Turner and Townsend Health and Safety Audit. It was agreed that future progress updates be sought from the sports clubs via the Metropolitan Police Athletics Association (MPAA) in order to ensure appropriate accountability.

78. Sports clubs – oral update by Deputy Chief Executive

(Agenda item 16)

The Deputy Chief Executive stated that he would be meeting representatives of the MPAA and Cdr Broadhurst, the MPS lead for the sports clubs, in the first week of July. The Estates Oversight Group had indicated that they wished to see the sports clubs become limited companies, however progress in achieving this would be slow. The Chair suggested it be made very clear to the clubs’ management committees that the clubs would be closed unless progress was made. He added that liabilities in relation to the sports clubs needed to be clearly established and requested a report at the next meeting.

The meeting ended at 1.00 pm

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