Corporate Governance Committee work programme

Report: 17
Date: 22 September 2006
By: Chief Executive and Clerk

Summary

This report outlines a workplan by which the committee will fulfil its role as agreed in its terms of reference (see appendix 1).

A. Recommendation

That members agree the proposed work programme.

B. Supporting information

Introduction

1. At its annual meeting on 8 July 2004, the Authority established the Corporate Governance Committee. It succeeded the Audit Panel, the work of which conformed to an established annual cycle. The Corporate Governance Committee took on responsibility for risk management (previously been considered by the Finance Committee) and health and safety. The work programme of the Corporate Governance Committee has and is evolving to reflect developing processes and issues.

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. The Committee will therefore be asked to approve the internal audit programmes for 2007/08 in December 2006 or March 2007. The external audit programme should be received in March 2007. 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, so the Committee will therefore be asked to review a draft of the 2006/07 report in June 2007.

4. The Authority’s accounts for 2006/07 will have to be approved within three months, i.e. by the end of June.

5. The external auditor plans to complete the audit by the end of September 2006. The auditor concludes the audit by publishing an opinion on the accounts and sending the 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 2006. 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

6. In July 2004 the MPA adopted a risk management strategy for the first time This was reviewed and revised in December 2005. The Committee has a remit to keep the strategy under review. 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 provides as part of the annual accounts. The Committee will receive a separate report in June on the Statement of Internal Control. The Committee will also receive quarterly reports charting progress on agreed actions, particularly high risk recommendations.

Health and safety

7. 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 reports on health and safety should give members the opportunity to satisfy themselves 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.

Regular Health and safety reports will be brought to the Committee.

Summary of work programme

8. Below can be found a table outlining a proposed work plan for the Corporate Governance Committee:

9. The Director of Strategy, Modernisation and Performance or Director of Resources will be invited to each meeting. It is hoped that other members of the MPS’s senior management team will also attend meetings of the Corporate Governance Committee as appropriate.

C. Race and equality impact

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: Ken Hunt, MPA.

For information contact:

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

Appendix 1

Corporate Governance Committee - Terms of reference

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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