Committee Work Programme

Report: 4
Date: 23 September 2004
By: Clerk and Treasurer

Summary

This report proposes the appointment of a co-opted member to the Corporate Governance Committee for 2004/05.

A. Recommendation

That members agree the workplan

B. Supporting information

Introduction

1. The Corporate Governance Committee was established as a new committee by the Authority at its annual meeting on 8 July 2004. The work of the Audit Panel, which it succeeds, conformed to an established annual cycle. Risk management had previously been considered from time to time by the Finance Committee and also by an ad hoc meeting of Authority members. The governance arrangements for risk management in the MPS have only recently been put in place. The situation is similar with health and safety. To some extent therefore the work programme of the Corporate Governance Committee will have to evolve to reflect developing processes and issues. The programme outlined in this report must therefore be regarded as provisional, at least in some respects.

Audit and accounts

2. The Committee exercises the MPA’s responsibilities in relation to both internal and external audit and scrutinises the draft accounts on behalf of the Authority. The work cycles for internal and external audit are similar but with different timings.

3. In both cases, the Committee approves the annual audit programme or plan before the beginning of the year to which it relates. In the case of external audit this is a change from previous practice when the programme was agreed prior to the year in which the accounts were audited, which in effect was a year in arrears. The Committee will therefore be asked to approve the internal and external audit programmes for 2005/06 in March 2005. The external audit programme will extend over approximately eighteen months, in order to complete the audit of the year’s accounts, overlapping the previous year’s programme. The internal audit plan covers work to be carried out in the following twelve months.

4. The Committee will receive regular progress reports against both the internal and external audit plans during the year. The Director of Internal Audit will seek to publish his annual report about three months after the end of the financial year. The Committee will therefore be asked to review a draft of the 2004/05 report in June 2005.

5. The timetable for the closure and approval of the Authority’s accounts, and therefore of the completion of the external audit, is being brought forward in accordance with new statutory requirements. Previously the accounts had to be approved within six months of the year-end, i.e. by the end of September. By 2006, they will have to be approved within three months, i.e. by the end of June. The accounts for 2004/05 will have to be approved by the end of July 2005, the same timescale as achieved this year. No decision has been made yet as to whether the accounts closure can be moved forward a month next year. If it can the Committee will be able to scrutinise the draft accounts in June 2005, otherwise an additional meeting will be needed in July.

6. For the current year, the external auditor is required to complete his audit by the end of November. He concludes his audit by publishing his opinion on the accounts and sending his annual audit letter to the Authority. The letter is shared with the Committee before it is finalised. This will happen at the meeting scheduled for December 2005.

7. There is one further timetabling issue in relation to the annual audit. The external auditor is required to report to those ‘charged with governance’ matters of substance that have arisen during the audit. This needs to be done before the annual letter is finalised. Subject to the Committee’s agreement it is proposed that, if there is anything to report, the external auditor will meet the Chair and Deputy Chair of the Committee rather than set an additional committee date.

Risk management

8. The MPA adopted a risk management strategy for the first time in July 2004. The Committee has a remit to keep the strategy under review. It is suggested that it would be appropriate to review the strategy after it has been in place for a year, therefore in September 2005.

9. The MPS has its own Corporate Governance Strategic Committee (CGSC) that deals with risk management. In providing an oversight of risk management, this Committee should seek to feed off, and not duplicate, the work of the CGSC. There is a report elsewhere on the current agenda outlining the operation of CGSC that will assist members in identifying the information that the Committee will want to see. Initially it is considered that members will want to see and endorse an annual programme of risk management activity, to receive progress reports and an assessment of achievement against the programme after the end of the year.

10. It has already been agreed as part of the risk management strategy that the Commissioner will need to provide each year a letter of assurance on internal control and risk management as an input to the statement on the system of internal control that the Authority now has to provide with the annual accounts. The Committee will review this as part of its scrutiny of the accounts.

Health and safety

11. Section 2 of the Health and Safety at Work Act 1974 states that employers must, as far as reasonably practicable, ensure the health, safety and welfare of their employees. For the MPA this means all staff under the direction and control of the Clerk and all non sworn staff under the direction and control of the Commissioner. Section 3 extends the duty to ensure that working practices do not put others at risk, whilst section 4 requires premises to be safe. Under the GLA Act 1999, the rights and liabilities attached to police premises and property were transferred to the MPA; this means the Authority may also be ultimately accountable for members of the public in police care or on police property. As police officers are agents of the Crown, rather than employees, the provisions of the Health and Safety at Work Act apply to the Commissioner but the Authority has an overall responsibility to ensure compliance with health and safety requirement across the board as part of their general duty to oversee efficiency and effectiveness under the Police Act 1996. For these reasons it is intended that reports for the coming year give members the opportunity to satisfy themselves, on an annual basis, that

• the MPS and MPA health and safety plans are sufficient to discharge the Authority’s responsibilities;
• the plans are being implemented;
• targets in relation to health and safety performance are being achieved; and
• any topical issues are brought to notice.

C. Equality and diversity implications

There are no direct equality and diversity implications arising from this report.

D. Financial implications

There are no direct financial implications arising from this report.

E. Background papers

None.

F. Contact details

Report author: Peter Martin (Treasurer) and Keith Dickinson, MPA

For information contact:

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

Appendix 1

Corporate Governance Committee

Audit

1. To advise the Authority on the appropriate arrangements for internal audit and the appointment of external auditors.

2. To approve internal and external audit programmes and fees

3. To review the external auditor’s management letter and any other reports and to report on these to the Authority as appropriate.

4. To oversee the provision of an adequate and effective internal audit; to receive progress reports on the internal audit work plan and to consider appropriate action arising from these.

5. To satisfy itself generally as to the effectiveness of the control systems in operation.

6. To review the Authority’s annual accounts and to make recommendations as appropriate to the Authority.

Health and Safety

1. To agree the MPS priorities for health and safety in its strategy.

2. To satisfy itself, on behalf of the MPA, that the MPS discharges its legal duties in relation to health and safety matters with particular regard to the safety, health and welfare of police officers and police staff, people in the care and custody of the MPS, and all members of the public on police premises or property.

3. To satisfy itself, on behalf of the MPA, that the MPS has in place appropriate health and safety, management systems, arrangements and procedures both to meet legal requirements and to assess and control risks.

4. To review, and exceptionally to request, the carrying out of audits and reviews of health and safety management systems, policies, arrangements and procedures, as necessary, and to review progress with the implementation of recommendations arising from such audits.

5. To provide a conduit for the expression of health and safety concerns.

6. To report annually to the full Authority on performance and compliance in relation to the above.

Risk Management

1. To consider the financial risks to which the Authority is exposed and to approve measures to reduce or eliminate them or to insure against them.

2. To consider proposed corporate programmes of risk management activity and receive reports monitoring progress.

3. To consider and approve an annual statement of internal control and risk management for publication with the Authority’s annual accounts.

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