MPA final report

Report: 9
Date: 12 January 2012
By: Chief Executive

Summary

This report summarises the work of the MPA’s committees and identified areas be taken forward by the Mayor’s Office for Policing and Crime, which will be established in January 2012.

A. Recommendations

That

1. Members note activity within the MPA’s committees and consider the recommendations contained at Appendices 1 and 2.
2. Members endorse the areas identified below for continued attention by the Mayor’s Office for Policing and Crime (MOPC).

B. Supporting information

1. This report provides Members with a summary of the work of each of the MPA’s committees and outlines how their work will be taken forward within the Mayor’s Office for Policing and Crime. More detailed close-down reports for each Committee were provided at their respective final meetings and are now available upon the MPA website.

2. MPA officers are currently developing an MOPC Governance Framework which sets out the legislative structure, will detail governance arrangements for the MOPC, how the organisation will manage its business – including the receipt of information and reports from the MPS - how it will be accountable to the GLA Police and Crime Committee, and how it will be accessible to Londoners in general. In producing this framework, officers have considered the statutory duties of the MOPC, best practice documents, and learning from the MPA.

3. It is important to note that MOPC will retain an element of independent oversight from an Audit Panel (in addition to the oversight provided by the GLA’s Police and Crime Committee); continue to engage in a partnership approach in support of executive decision-making (e.g. through the continuation of joint engagement meetings (JEMs)); publish relevant performance information (and other information) at regular intervals in accordance with a publicly accessible scheme of publication; adopt a robust decision-making protocol and scheme of delegation, which will contribute to good governance and public accountability and engage in increased collaborative and proactive working with the MPS, in recognition of the success of a mutually supportive approach in driving key changes and organisational effectiveness. Further information relating to how the MOPC will operate is contained within this report.

4. This report covers the following Committees:

• Strategic and Operational Policing Committee (paragraphs 5 – 11);
• Finance and Resources Committee (paragraphs 12 - 21);
• Community, Equalities and People Committee (paragraphs 22 – 30);
• Corporate Governance Committee (paragraphs 31 - 36); and
• Standards Committee (paragraphs 37 – 40).

Strategic and Operational Policing Committee

5. The Strategic and Operational Policing Committee (SOP) was established in November 2008 and has been responsible for:

• the MPA’s oversight and approval of strategic operational policing policy/priorities and the business change that supports this;
• at the strategic level ensuring that this policy and planning results in improved operational performance and productivity;
• ensuring that the MPA is effective and outcome-focused in discharging its responsibilities, for example through its business plan and scrutiny programme;
• the MPA’s statutory responsibilities for professional standards, including dealing with complaints against ACPO rank officers; and
• dealing with urgent business or matters that do not come within the terms of reference of other committees.

6. On an annual basis, a joint committee of SOP and F&RC met regularly in order to oversee the development of the Policing Plan, and to ensure that appropriate indictors and targets were being included. The committee has scrutinised headline performance on a monthly basis, including performance against the targets agreed in the plan. The committee has also considered thematic performance reports, focused on how the MPS is delivering against the strategic objectives outlined in the performance plan.

7. SOP has acted as the lead committee for MPA scrutinies. In this role it has directed scrutinies of the MPS’s safer neighbourhoods model, the Stockwell inquiry, and all areas of public protection, for instance. The committee has scrutinised professional standards performance on a quarterly basis members, including how the MPS learns from HMIC and IPCC reports. Members have also received information regarding data accuracy.

The Mayor’s Office for Policing and Crime

8. The MOPC will continue to receive regular reports from the MPS and additional performance information on an ad-hoc basis. Furthermore, the MOPC will have unprecedented access to live MPS data via multiple platforms. This data will be used to support original analysis, partnership working, project delivery and the independent governance of MPS performance.

9. The MOPC will continue to monitor MPS performance within each business group, and the Commissioner will be held to account for the performance of the MPS on a monthly basis by the Deputy Mayor for Policing and Crime (DMPC). Not only will MPS performance data be published each month upon the MOPC website, but the GLA’s Police and Crime Committee will provide for the public accountability of the MOPC. Legacy issues of public importance - including Operation Minstead, public order, and civil liberties - will be subject to the ongoing scrutiny of the officers of the MOPC. The MPA Officers will continue to monitor data accuracy measures and will report these to the DMPC on a regular basis.

10. The MPA commenced a research project into Anticorruption activity within the MPS at the beginning of 2011. The focus of the project has been to assess whether resources at the MPS are aligned and focused in the right way to detect, tackle and prevent corruption. Officers have engaged with the MPS, HMIC, IPCC, CPS and other relevant stakeholders, and have completed academic research, interviews, a survey and focus groups. Officers are now collating and verifying the findings with the intention to publish a report shortly. The MOPC is committed to delivering this project.

11. The Professional Standards Case Sub Committee has been responsible for: dealing with complaints and conduct issues relating to ACPO rank officers, determining pension forfeiture where an officer has been convicted of an offence, considering applications for ACPO rank officers to pursue business interests and business interests appeals from all MPS officers, and providing quality assurance of the MPS processes in relation to complaints and conduct matters. Under the Police Reform and Social Responsibility Act 2011 the MOPC will only deal with complaints and conduct issues relating to the Commissioner (or the Deputy Commissioner or an Assistant Commissioner exercising certain functions delegated by the Commissioner). All other ACPO rank officers complaints and conduct matters will be dealt with by the MPS. However, the MOPC and the MPS will have a process in place for the MOPC to receive updates on the handling of all such complaints and the MOPC has the power to direct the MPS to take any steps that it considers appropriate. The MOPC will retain all other professional standards responsibilities which will be discharged in accordance with the robust decision-making protocol outlined above.

Finance and Resources Committee

12. The MPA’s Finance and Resources Committee (F&RC) was established in November 2008 and has been responsible for:

• oversight and management of capital and revenue budgets, including budget monitoring and consideration (jointly with SoP) of the London Policing Plan before submission to the Full Authority;
• approval of major procurement contracts and oversight of the procurement function;
• Treasury management;
• oversight of the estate including approval of the estates strategy and major property projects; and
• oversight of ISIT, including approval of the ISIT strategy and major IT projects.

13. Finance and Resources Committee (F&RC) has ensured, through regular budget monitoring reports, that an underspend has been delivered year on year, and has provided clarity of focus upon issues of concern, including overtime expenses for instance. The Committee has secured savings in excess of £1,106M through a programme of modernisation and rationalisation of the back office through the service improvement programme. However, there is still a significant level of savings to be delivered in future years, currently estimated to be in excess of £820M by 2014/15. This is one of the key aspects of work that will need to be taken forward under the Mayor’s Office for Policing and Crime.

14. The MPA Estates Panel has overseen the development and approval of a revised estates strategy and the start of what will be significant modernisation of the estate. F&RC and Resources and Productivity Sub Committee have, since November 2008, awarded contracts with a total value in the region of £1.5bn, scrutinising proposals to ensure they offer value for money. The Committee has also approved a number of business cases for large scale IT projects - key to ensuring the MPS have in place the infrastructure to support front line services. IT is an area of work where the MOPC should consider the need for independent expert advice.

15. Between 6 and 9 August 2011 several areas of London (and some other parts of the country) experienced extensive periods of disorder. In London this required a significant police response at the time (Operation Kirkin) and an ongoing investigation into the criminal actions of those taking part in the disorder (Operation Withern). Under the Riot (Damages) Act 1886 (RDA), the Metropolitan Police Authority is liable to pay for damage to buildings and their contents which occurs in the course of a riot in London (excluding the City of London). The Act provides for compensation to be paid for losses through injury, destruction or stealing, to houses, shops and other buildings or their contents caused by any person involved in a riot. Claims have to be assessed in accordance with the legal definition of a riot.

16. The MPA initially received over 3,844 claims in respect of losses suffered in London, including 60,000 pages of supporting documentation. The period for claims submissions has now ended and approximately 3,300 claims have been received totalling in excess of £225m. In addition there are approximately 1,700 claims totalling £91m for business interruption and consequential loss of profits which are not covered by the Riot Damages Act. The number and value of the claims will continue to change as the Department of Legal Services start to consider claims and as additional information is received from claimants or their representatives.

17. In some cases a holding claim has been submitted. The total value of eligible claims is, therefore, expected to increase to around £300m. The Home Office have indicated that applications for support from Police Authorities will be considered as special grant applications and Authorities will need to demonstrate the impact on the overall financial position of the Authority. Although the Home Secretary has confirmed that the Home Office will meet the costs of uninsured claims the cost of claims from insured and under-insured businesses and individuals are the subject of ongoing negotiation with the Home Office. Whilst the current planning assumption is that these costs will be recovered in full, there is currently no such formal guarantee from the Home Office, and it is possible that some of the costs may need to be met from MPA/MPS funds. A formal claim was submitted to the Home Office on 18 November 2011 which has requested special grant funding of £378m being reimbursement for the estimated total additional costs of Operations Kirkin and Withern and the Riot Damages Act claims.

The Mayor’s Office for Policing and Crime

18. In addition to the existing annual budget scrutiny meetings, the MOPC will be involved in the budget setting process for the entire year. This will enable a more detailed understanding and input into budget proposals as they are developed. The MOPC will ensure that strong programme management and business change skills are embedded throughout the MPS via monthly meetings with the Commissioner on the subject of finance.

19. The MOPC will have in place a robust and publicly-accessible protocol for decision-making, which will be informed by a detailed scheme of delegation. This process for decision-making will support the ongoing role of the MOPC in the tendering and award of major contracts.

20. The modernisation of the estate has a vital role to play in delivering savings in future years, consideration needs to be given as to how the role of the work undertaken by the estates panel can be carried through under the new governance arrangements. This should include further development of the estates strategy with the production of detailed implementation plans.

21. Under the provisions of the Police Reform and Social Responsibility Act 2011, the responsibility for determining payments under the RDA will transfer from the MPA to the MOPC.

Communities, Equalities and People Committee

22. The Communities, Equalities and People Committee (CEP) was established in order to fulfil the following responsibilities:

• oversight of MPS human resources (HR) policies and strategies;
• oversight of all matters relating to equal opportunities and diversity within the MPS and the MPA;
• MPA/MPS statutory consultation and community engagement duties; and
• MPA/MPS statutory partnership duties.

23. The Authority presided over the development of the first ever MPA/MPS community engagement strategy in 2005. This is the overarching framework within which the MPA and MPS deliver community engagement and both organisations have developed action plans to support delivery. The Community Engagement and Citizen Focus Sub-Committee has provided direction and support to the work of the Community and Police Engagement Groups (CPEGs). The Authority’s current statutory consultation duties have been replicated in the Police Reform and Social Responsibility Act (2011) and will transfer to the MOPC.

24. The multi-agency Domestic and Sexual Violence Board (DSVB) began as the Domestic Violence Board in 2006. In line with national developments in this area, the Board expanded its remit to adopt a more holistic approach to all forms of violence against women in 2009. The DSVB final report recommended that the MOPC ensure that it is able to independently and rigorously review MPS strategy, policy, and practice across MPS units which deal in any way with all forms of violence against women. The Hate Crime Forum has played a significant role in the development of such multi-agency partnership and ‘critical friend’ approaches. Hate crime remains both a Mayoral and a Government priority.

25. The Equality and Diversity Sub-Committee (EDSC) leads on issues relating to equality of opportunity and diversity within the MPA and MPS. The Sub-committee has enabled members of London communities, particularly those that have traditionally been excluded, to participate actively in such discussions – supporting the development of more effective relationships between the police and different sections of the community. The MPA has conducted a significant review of police diversity training and took part in the GLA best value review of equalities in 2001/2002. The Neyroud Review contains a number of proposals and recommendations including the creation of a chartered professional body for policing that would set standards and ensure accreditation of these, a new delivery body for police leadership and training and a new qualifications framework for policing. The MOPC has sought involvement in the reports implementation and a seat on the professional body for the Service.

26. The Committee has received reports on the MPS’ developing partnership framework and an MPA officer sits on the MPS’ central partnership steering group, to ensure that the MPS’ partnership management processes are sufficiently robust. Two of the key recommendations arising from the MPA partnerships scrutiny (2003) led to the creation of the MPA partnerships team and the MPA partnership fund, both of which will continue under the MOPC. MOPC will not be a responsible authority on Community Safety Partnerships, but will have statutory grant-making and performance oversight responsibilities.

The Mayor’s Office for Policing and Crime

27. MOPC officers will support the delivery of a Police and Crime Plan and an MOPC strategy. Whilst the contents of these remain undetermined, it is anticipated that a focus on effective partnership working, community engagement, equality and diversity and the management and development of MPS human resources, will remain.

28. The provision of public oversight and scrutiny has been important in ensuring openness and transparency in the policing of London. Increased openness and transparency has undoubtedly impacted on community confidence, allowing communities to more openly interact with the MPS to improve policing and effect appropriate change. Rather than just observing proceedings, members of London’s diverse communities have been able to interact directly with members of the MPA and senior MPS officers.

29. Secondly, the MPS has been able to use the Authority as an effective sounding board for key policy decisions prior to implementation, which has enabled more effective decision-making and in some cases, has ensured a more proportionate policing response. To deliver effective oversight this process must work both ways. Ongoing informal and formal dialogue is central to ensuring that proposals are realistic and workable. The MOPC will continue to receive regular reports from the MPS, will have unprecedented access to police data, and will continue to be represented at the relevant MPS forums and partnership meetings.

30. Thirdly, the Authority has on many occasions sought external expertise to support the delivery of particular scrutiny and oversight functions. This has been extremely beneficial to the MPA, enabling it to meet specialist skills gaps and to also increase community confidence in its work. In addition to the oversight which will be provided by the GLA’s Police and Crime Committee, the MOPC will also appoint an independent Audit Panel to oversee the work of both the MOPC and the MPS.

Corporate Governance Committee

31. Since its creation in 2004 the MPA Corporate Governance Committee has provided independent assurance of the adequacy of the risk management framework and the associated control environment, independent scrutiny of financial and non-financial performance to the extent that it has affected the MPA’s exposure to risk and impacted on the control environment, and overseen the financial reporting process. The Committee’s remit has been responsible for:

• Considering the effectiveness of the MPA/MPS risk management arrangements, the control environment and associated anti-fraud and anti-corruption arrangements;
• Seeking assurances that action has been taken on risk-related issues identified by internal and external auditors and inspectors;
• Being satisfied that the MPA assurance statements, including the Annual Governance Statement, properly reflect the risk environment and any actions required to improve it;
• Approving internal audit’s strategy, plan and monitoring internal audit performance;
• Reviewing summary internal audit reports and the main issues arising, and seeking assurance that action has been taken where necessary, particularly in relation to high risks;
• Receiving the annual report of the Director of Audit, Risk and Assurance;
• Considering the reports and recommendations of external audit;
• Ensuring effective relationships between external and internal audit and that the value of the audit process is actively promoted;
• Reviewing the financial statements, external auditor’s opinion and reports to members, and monitoring management action in response to the issues raised by external audit; and
• Ensuring the MPA and MPS health and safety plans have been effective in discharging the Authority’s health and safety responsibilities.

32. The Committee has received annual reports from the Director of Audit, Risk and Assurance and ensured appropriate action has been taken to address the risk and control issues that have emerged. On a quarterly basis it has reviewed progress made in implementing internal and external audit recommendations with a particular focus on high risk areas. Annual Governance Statements provide an overall assurance on the effectiveness of the governance arrangements in the MPA and MPS and highlight areas for further improvement. Members have scrutinised quarterly reports on the development of the MPS corporate governance framework which have demonstrated considerable progress in key aspects of governance.

33. The Committee has overseen the development and improvement of the MPA and MPS risk management framework, approving the respective risk management strategies and improvement plans. Each year members have scrutinised the MPA annual accounts prior to publishing and given full consideration to the District Auditor’s Annual Governance Report and Annual Letter. They have ensured appropriate management action has been taken to address the recommendations made. Members have given support and commitment to the development of an effective Anti Fraud Strategy and implementation plan for the MPA and MPS.

34. The Committee has ensured an appropriate response to legislative changes and requirements such as the Corporate Manslaughter and Corporate Homicide Act 2007, and overseen the implementation of recommendations arising from a joint MPA/MPS external independent audit of health and safety. It saw the publication of a joint MPA/MPS Health and Safety Policy supported by a joint statement of intent signed by the Deputy Mayor for Policing and the Commissioner.

The Mayor’s Office for Policing and Crime

35. The MOPC governance arrangements are being developed to meet the requirements of the Police Reform and Social Responsibility Act 2011, supporting statutory Protocol, Home Office Financial Management Code of Practice, and existing guidance on financial matters which will continue to apply to the MOPC.

36. The governance structures will include an independent Panel to perform the functionality of an Audit Committee overseeing both the MOPC and the MPS. It is intended that the Panel will play a key role in ensuring the MOPC and MPS obligations under Equalities legislation and Health and Safety legislation are effectively discharged. It will also continue to scrutinise any severance payments to senior officers in its review of the annual accounts presented by the external auditor. The membership of the Panel will reflect the full range of its responsibilities regarding audit, risk management, financial reporting, equalities and health and safety. The implementation of internal and external audit recommendations will continue to be monitored by the Panel together with any areas identified for improvement in the Annual Governance Statement and supporting assessments.

Standards Committee

37. The Standards Committee of the MPA is a statutory committee of the Authority, and consists of both Members of the MPA and members who are co-opted onto the Standards Committee. Its functions are to promote and maintain high standards of conduct by Members of the Authority; to advise the Authority on the Members Code of Conduct (“Code”) and to monitor the operation of the Code; to assist members in observing the Code, including arrangements for training on matters relating to it; to deal with all allegations and subsequent action about breaches of the Code; to consider applications from MPA staff for the post held by them to be exempted from the list of politically restricted posts held by the MPA; to consider and determine requests to grant a member a dispensation.

The Mayor’s Office for Policing and Crime

38. The MOPC will not be subject to the statutory standards regime. Any ongoing complaints about members breaching the MPA’s Code will either remain with the MOPC to be resolved if the complaint is about an independent member, or be transferred to the GLA if it is about a member of the Assembly.

39. Under new Regulations, complaints about the MOPC and DMPC are either to be handled by the Police and Crime Committee of the GLA (certain functions to be delegated if agreed by the PCC), with complaints to be resolved informally, or if it is a more serious complaint or an allegation about criminal conduct these are to be referred to the IPCC.

40. The Act provides that all members of MOPC staff will be politically restricted, and there is no ability to apply for an exemption.

C. Other organisational and community implications

Equality and Diversity Impact

1. There are no specific equality and diversity implications arising from this report. However, these are key issues for the Authority and will continue to be so under the MOPC.

2. The MOPC will be required to comply with the public sector equality duty to (i) eliminate unlawful discrimination, harassment and victimisation and other conduct prohibited by the Act, (ii) advance equality of opportunity between people who share a protected characteristic and those who do not and (iii) foster good relations between people who share a protected characteristic and those who do not. The oversight and monitoring activities described within this report and within the close-down reports on the MPA website will support this requirement.

3. The MOPC decision-making protocol will require officers to consult with the MOPC’s Equalities and Diversity Unit and decision forms will detail all relevant community implications.

Consideration of MET Forward

4. As a statement of the future governance arrangements within the MOPC this report supports all strands of MET Forward.

Financial Implications

5. This report details the arrangements in place to ensure that the MOPC provide effective financial governance and the continued oversight of MPS spend. All work carried forward into the MOPC will be funded from within existing budgets.

Legal Implications

6. This report provides the corporate response of the MPA/MOPC to the provisions of the Police Reform and Social Responsibility Act and other relevant legislation.

Environmental Implications

7. A template for reports to the GLA’s Police and Crime Committee has been drafted for agreement and proposes that the environmental implications of MOPC and MPS policies be reported to the GLA as a matter of course.

Risk Implications

8. In providing independent assurance on the adequacy of the risk management framework and internal control environment and overseeing actions taken to address any issues arising, the Audit Panel will reduce the MOPC and MPS exposure to risks.

9. There is a potential risk associated with continuing oversight of the matters that fall within the remit of this Committee under a new governance structure, which may not have the same scope for business to be conducted in public meetings. Providing a publicly accessible control framework, decision-making protocol, and scheme of publication, will ensure that effective and transparent governance arrangements are in place.

D. Background papers

None

E. Contact details

Report authors: , MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1

Members were given the opportunity to recommend issues for continued consideration by the MOPC.

Recommendations – that

1. The MOPC should monitor:

• The costs of public order policing.
• The use of Section 43 of the Terrorism Act (stopping photographers).
• The new forensic science operating model.
• Crime screening by the MPS.
• Legal costs paid to John Yates and phone-hacking more broadly.
• Police overtime and consider any options for reducing this – e.g. more flexible deployment schedules during public order and sporting events.

2. The MOPC should:

• Oversee the completion of the budget submission for 2012/13
• Put in place monitoring systems to ensure that savings for 2012/13 to 2014/15 are delivered.
• Significantly enhance the scrutiny of the development of the annual budget and ensure they are involved in the budget setting process throughout the year.
• Implement a system of zero based budgeting as soon as practically possible.
• Ensure ongoing improvements are made in the MPS’S programme and business change skills.
• Ensure an enhanced and ongoing role in procurement, including oversight of Olympic contracts including adequate Audit procedures.
• Ensure that strong programme and business change skills are strengthened and embedded throughout the MPS.
• Develop the estates strategy further through the production of detailed implementation plans for the estates strategy.
• Undertake a review of the estates engagement strategy to assess whether it has met its overall objective.
• Commission an independent review of the disposal strategy.
• Commission an in depth external review of IT including the function, infrastructure and the revised IT strategy.

Appendix 2

Communities, Equalities and People Committee Legacy Activities to be carried forward into the Mayor’s office for Policing and Crime

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