Statement of Internal Control

Report: 5
Date: 15 June 2007
By: Treasurer and Commissioner

Summary

The MPA is required to include a Statement of Internal Control in its financial statements. This includes details of the system of internal control and risk management, the key controls, and how effectively they are being deployed, highlighting any significant internal control issues and the relevant actions being taken to address them. This report provides details of the statement of internal control to be included in the statement of accounts for 2006/07, and details of the MPS’s statement of internal control.

A. Recommendation

That

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

B. Supporting information

Statement of internal control

1. In accordance with the Accounts and Audit Regulations, 2003 and the Accounts and Audit (Amendment) Regulations 2006 there is a statutory obligation to publish a Statement of Internal Control (SIC) in the annual accounts setting out details of the MPA/MPS system of internal control and risk management, the key controls and how effectively they are being deployed.

2. The Authority is also responsible for ensuring that there is a sound system of internal control which facilitates the effective exercise of the Authority’s functions and which includes arrangements for the management of risk. In exercising this responsibility, the Authority places reliance on the Commissioner to support the internal control and risk management process as the majority of the MPA’s controls are deployed within the MPS. Hence in exercising its statutory responsibilities under the regulations, the Authority places reliance on the Commissioner to deploy, maintain and monitor internal control and risk management processes.

3. The MPS have evidenced these controls through the production of it’s own SIC, which is signed by the Commissioner. This has then been consolidated with the MPA’s own SIC to produce an overarching statement for inclusion in the statement of accounts, which is signed by the Chair of the Authority and Chief Executive. Copies of both the MPA and the MPS statement of internal control (the MPS is still awaiting final sign-off) are attached at Appendix 1 and 2 respectively, a summary is provided below.

Internal Control environment

4. The MPA Statement of Internal Control has identified 12 elements as being key to the internal control environment, as indicated below, detailing how each element supports the internal control environment.

• Facilitating effective strategy policy and decision making
• Establishing and monitoring the achievement of objectives to ensure that high quality services are delivered efficiently and effectively
• Ensuring compliance with statutory obligations, laws, regulations, guidance and established policies and procedures
• Management of change processes
• Identifying, assessing and managing the key risks to the Authority’s services
• Minimising disruption to the Authority’s business as usual
• Ensuring effective corporate financial management and reporting thereof
• Ensuring economical, effective, efficient and safe use of resources
• Ensuring the Authority’s information is trusted, accessible and useable
• Working for and with the community to promote its well being, exercising leadership as necessary
• Defining, communicating and monitoring professional standards
• Defining, communicating and monitoring standards of individual performance expected of all personnel
• Review of effectiveness

5. The MPA has responsibility for carrying out a review (at least annually) of the effectiveness of the system of internal control. This is undertaken by the Director of Internal Audit, taking into account the work of internal audit, other MPA officers, external auditors and other review agencies. For 2006/07 an assurance score of 2.9 has been given, no change on that given in 2005/06.

Significant issues

6. The MPS have identified 11 issues for 2005/06. These relate to the following issues:

• Performance – Implementation of the National Crime Recording Standards action plan is being overseen by the Performance Board
• Change – A new programme and project managers network is being initiated to provide support in the delivery of projects and programmes.
• Intelligence - The intelligence Covert Policing and Tasking Steering Group is bringing together the various work programmes into one single cohesive work programme.
• Policy – A new workbook, to include guidance on the Equality Impact Assessment process is to be produced.
• Safety & Health – All BOCUs and business groups are to produce local Health and Safety plans.
• Procurement – A review of contract regulations is being undertaken.
• Risk – building on work undertaken to date and development of an overarching corporate governance framework
• Continuity – Development of corporate critical activities.
• Financials – Reinstatement of the Capital Programme Board to ensure appropriate use of resources, and further development of the integrated business planning process.
• Information – Development of a framework for the governance of MPS information.
• Community Engagement – Review of the engagement strategy and minimum standards
• Human Resources – Integration of risk management and performance management processes

7. Taking into account the significant issues identified by the MPS, and work being undertaken by the MPA, three significant issues have been included in the MPA’s statement of internal control. These relate to the following issues:

• Internal control – Weaknesses have been identified within the internal control environment
• Contract regulations – Measures need to be put in place to monitor compliance with the revised contract regulations
• Internal Control - The average assurance score remains at 2.9, the same position as reported last year.

Further details of these and the actions being taken to address them are included in the Statement of Internal Control.

8. Progress in addressing the significant issues identified in 2005/06 is also included in the appended statements. Progress in addressing issues identified in 2006/07 will be reported to Corporate Governance Committee on a quarterly basis

C. Race and equality impact

The MPA will ensure that equality and diversity issues are fully considered in completing the SIC.

D. Financial implications

A sound system of internal control is vital in ensuring that financial management is effective.

E. Background papers

• Statement of internal control – interim report

F. Contact details

Report author: Annabel Adams, MPA.

For information contact:

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

Appendix 1

Statement on System of Internal Control

Position as at 31 March 2007 including plans for the financial year 2007-08

1. Scope of responsibility

The Metropolitan Police Authority (MPA) is responsible for ensuring its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. In discharging this overall responsibility, the Authority is also responsible for ensuring that there is a sound system of internal control which facilitates the effective exercise of the Authority’s functions and which includes arrangements for the management of risk. In exercising this responsibility, the Authority places reliance on the Commissioner of the Metropolitan Police Service (MPS) to support the internal control and risk management processes.

A more detailed Statement of Internal Control for the MPS signed by the Commissioner supports this overarching Statement.

2. The purpose of the system of Internal Control

The system of internal control is designed to manage risk to a reasonable and foreseeable level rather trying to eliminate all risk of non-achievement of policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Authority’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them effectively, efficiently and economically.

The system of internal control in place for the year ended 31 March 2007 and up to the date of approval of the annual accounts has been the subject of quarterly review.

3. The Internal Control environment

The key elements of the internal control environment include:

Facilitating effective strategy policy and decision making

The full Authority and Co-ordination and Policing Committee meet regularly to consider the strategic direction, plans and progress of the Authority. A range of member committees regularly reviews specific policy areas. The MPA Senior Management Team are responsible for establishing the internal vision, strategic direction and priorities for the MPA and advising and supporting members in influencing and shaping the strategic direction and priorities for the policing of London.

Within the MPS, Management Board is the strategic co-ordinating and tasking group for the organisation with responsibility for developing and delivering the corporate strategy. The corporate values are reviewed as part of a three-year strategy. In addition, the continuing implementation of the National Intelligence Model provides strategic direction for senior managers and the corporate strategic assessment identifies future strategic issues. The integrated planning process continues to be enhanced, with a single integrated planning document incorporating strategy and annual plan. Other boards such as Investment Board and Contracts Board support strategy, policy and decision making.

Establishing and monitoring the achievement of objectives to ensure that high quality services are delivered efficiently and effectively

An extensive planning and consultation process identifies policing priorities for the coming year each of which has a clear objective. The Authority approves key performance indicators and targets to support the objectives. All the key targets are subject to close scrutiny by the full Authority and the Planning, Performance and Review Committee. The process assists management in highlighting performance problems at an early stage, facilitating appropriate interventions.

Within the MPS there is a performance management framework in place supporting the Performance Board. This focuses on delivery of the seven strategic priorities and delivery of the Met Modernisation Programme. There is also an inspection and review programme with monthly publication of progress and activity. This is has been enhanced to include tracking, implementation and progress of Internal Audit high risk recommendations.

Ensuring compliance with statutory obligations, laws, regulations, guidance and established policies and procedures

The Authority has a duty to ensure that it acts in accordance with the law and various regulations. A number of policies and procedures have been produced to ensure officers, within the MPA and MPS, understand their responsibilities. These and compliance with them are reviewed regularly both internally and by the appropriate committees. In addition, professionally qualified staff occupy key roles throughout both the MPS and MPA. Regular reports are made to the Authority on compliance with current initiatives and external requirements, with internal audit reporting on the effectiveness of the organisation’s systems of internal controls and making recommendations for improvement. The Authority has delegated Monitoring Officer responsibilities to the Deputy Chief Executive and Solicitor to the Authority.

Within the MPS the Policy Co-ordination Unit are responsible for overseeing all key aspects of policies and publishing standard operating procedures, with a process in place to ensure that each national policy is assessed against an National Centre of Policing Excellence capability assessment. An overarching corporate governance framework is to be developed in line with the CIPFA/SOLACE framework, which is due to be published shortly.

Management of change processes

The Met Modernisation Programme (MMP) is an MPS organisational change programme. The MPA is responsible for endorsing the programme on an annual basis, monitoring progress and endorsing recommendations made by the Management Board.

Within the MPS, a programme delivery board manages the MMP with corporate oversight provided by Management Board. Co-ordination of MPS change via the MMP will ensure that strategic change decisions are effective, co-ordinated and focused on delivering service improvement in line with strategic outcomes.

Identifying, assessing and managing the key risks to the Authority’s services

The Corporate Governance Committee is responsible for ensuring that risk management processes and programmes operate effectively in accordance with the risk management strategy, endorsed by the Authority in July 2004 revisions to which were approved by Corporate Governance Committee in December 2005. The strategy sets out the objectives, responsibilities, processes and support mechanisms for risk management. Risk registers are being embedded throughout the MPS, with key risks incorporated in the corporate risk register. A programme of training is underway and an engagement programme is targeting all areas of the MPS to further embed risk management. A corporate risk review group has been established within the MPS to act as a conduit between business groups and Management Board in relation to the identification and management of corporate risks.

The MPA has developed a risk profile, reviewed regularly by the senior management team, actions from which are embedded in corporate and team work plans.

Minimising disruption to the Authority’s business as usual

Business continuity boards are in place within the MPA and MPS, with continuity plans compiled for all areas of the MPA and MPS. These are reviewed on an annual basis.

Ensuring effective corporate financial management and reporting thereof

In accordance with S127 of the Greater London Act 1999, the MPA Treasurer is the financial adviser to the MPA and is responsible for ensuring the financial affairs of the Authority and MPS are properly administered having regard to probity, legality and appropriate standards.

The Commissioner has responsibility for the day-to-day financial management of the MPS in accordance with the approved scheme of delegation. The MPS operate within a devolved accounting framework that is supported by business accountants and regular financial awareness training.

Budget monitoring reports for both capital and revenue are presented to MPS Investment Board and MPA Finance Committee on a regular basis. These compare actual and forecast expenditure against budget, providing explanations for major variances.

The financial planning framework has been revised to improve integration with strategic planning and ensuring improved financial planning and budgeting. A medium term financial strategy is now produced (incorporating the capital strategy). This three year corporate business plan is reviewed annually.

The statement of accounts is published annually. Scrutiny by Members and the District Audit annual letter are key controls in this area.

Ensuring economical, effective, efficient and safe use of resources

In accordance with the Local Government Act 1999 (and subsequent revised government guidance) the MPA are responsible for ensuring that arrangements are in place that ensure continuous improvement, and that economy, effectiveness and efficiency are secured both within the MPA and MPS, and service improvement reviews (SIRs, commonly known as best value reviews) are one of the methods used in achieving this. Based on advice from the MPS the Planning, Performance and Review Committee are responsible for selecting all SIRs. The Committee approve SIRs, their final reports and implementation plans and monitor implementation of the plans.

As part of their annual Policing Plan, the MPS are required to demonstrate efficiency savings equivalent to 3% (of which 1.5% must be cashable) of their annual budget with performance also being maintained or improved. Her Majesty’s Inspectorate of Constabularies (HMIC) monitor police authorities’ achievement through quarterly inspections and quarterly reports on progress are also made to the Finance Committee.

An informal, member-led group oversees scrutiny of specific budget headings and overtime.

The MPA have an Anti Fraud and Corruption Policy as part of its corporate governance arrangements to assist in safeguarding its resources, and the MPS also have an Anti Fraud and Corruption Strategy that is overseen by the Professional Standards Strategic Committee.

Ensuring the Authority’s information is trusted, accessible and usable

The Authority has a member with specific responsibility for information systems and technology that through regular scrutiny meetings ensures that information is trusted and assessable.

Within the MPS this responsibility lies with the Directorate of Information, which through the Information Management Strategic Group is driving through the information management strategy.

The MPS Information Authority is responsible for the ratification of the information policy and provides governance for the information management business programme. There are also a number of other groups within the MPS who all contribute towards effective information management.

Working for and with the community to promote its well being, exercising leadership as necessary
The Co-ordination and Policing Committee is responsible for promoting and monitoring the development of effective arrangements within the MPA and MPS to engage with local communities in the delivery of local policing services and in building safer neighbourhoods. Community Police Consultative Groups and Crime and Disorder Reduction Partnerships (CDRPs) facilitate consultation with local communities, with CDRPs informing local priorities that are included in the annual Policing Performance Plan.

The accelerated rollout of Safer Neighbourhood teams will help ensure that local policing is delivered to the community and that feedback from the community is built into future policing delivery.

Citizen Focus outlines expectations of contact with the MPS, interacting and responding to the community and dealing with victims of crime.

Defining, communicating and monitoring professional standards

The Professional Standards and Complaints (PSC) Committee are responsible for monitoring professional standards of ACPO rank police officers and the Standards Committee is responsible for promoting and maintaining high standards of conduct by members of the Authority.

Within the MPS this is the responsibility of the Directorate of Professional Standards. There is a Professional Standards Strategy in place that is driven by the MPS Professional Standards Strategic Committee. This reports quarterly to the PSC Committee.

Defining, communicating and monitoring standards of individual performance expected of all personnel

The Co-ordination and Policing Committee are responsible for all Human Resources issues.

Policies are in place to define standards of performance expected by all personnel. Performance development reviews are undertaken on an annual basis and there are procedures in place to manage unsatisfactory performance. Annual training programmes outline the training needs of individuals and the organisation as a whole.

4. Review of effectiveness

The Authority has responsibility for conducting, at least annually, a review of the effectiveness of the system of internal control. For those systems reviewed by Internal Audit in 2006/7, the average assurance score was 2.9. (2.9 in 2005/6) on a scale of 1 to 5 (where a score of 2 reflects a system with adequate controls and 3 to 4 reflects increasing degrees of the need to improve).

This review of effectiveness was informed by the work of the internal auditors and also managers within the Authority who have the responsibility for the development and maintenance of the internal control environment. In addition, comments and recommendations made by the external auditors and other review agencies and inspectorates have informed this review. Brief comments on their roles are as follows:

• Internal Audit: The responsibility for maintaining and reviewing the system of internal control rests with the Authority. In practice however, the Authority takes assurance from the work of Internal Audit. In fulfilling this responsibility:
  • Internal Audit operates to CIPFA’s Code of Internal Audit Practice 2003. The Code requires the Director of Internal Audit to include in the annual internal audit report an opinion on the internal control environment; providing any details of weaknesses that qualify this opinion and bringing to the attention of the Authority any issues particularly relevant to the preparation of this Statement of Internal Control. The Authority is satisfied that Internal Audit operates to the standards set out in the Code and can take assurance from their opinion.
  • Internal Audit reports to the Chief Executive and the Corporate Governance Committee;
  • the Director of Internal Audit provides an independent opinion on the adequacy and effectiveness of the system of internal control;
  • external audit express an opinion on the adequacy of internal audit work;
  • internal audit work is planned using a risk-based approach that aims to ensure that the Treasurer’s responsibilities under s127 of the GLA Act 1999 are fulfilled and that an effective internal audit service is provided to the Authority as required under the Accounts and Audits Regulation 2003.
• External Audit – in their annual audit letter particularly comment on financial aspects of corporate governance and performance management and other reports.
• Other review/assurance mechanisms: for example HMIC, Health and Safety Inspectorate, Corporate Risk Management Group.

5. Significant internal control issues

2005/06

There were six areas where internal control issues were raised in last year’s statement. Progress in addressing these is detailed below.

2006/07

For 2006/07 the Authority has identified three main internal control issues that require attention during 2007/08

Appendix 2

Metropolitan Police Service (MPS) statement on Internal Control

Position as at 31 March 2007 including plans for the financial year 2007-08

1. Scope of responsibility

The Metropolitan Police Authority (MPA) is responsible for ensuring its business is conducted in accordance with the law and proper standards and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. In discharging this overall responsibility, the MPA is also responsible for ensuring that there is a sound system of internal control which facilitates the effective exercise of the Authority’s functions and which includes arrangements for the management of risk.

By extension, this statutory requirement applies to the MPS. The principal risks to which the MPS are subject, and the key controls in place to mitigate those principal risks are MPS risks and controls. Hence in exercising its statutory responsibility under the Regulations, the MPA places reliance on the Commissioner of the MPS to deploy, maintain and monitor proportionate internal controls and risk management processes.

The Commissioner is accountable for ensuring that there is a sound system of internal control facilitating the exercise of the MPS’s functions and including arrangements for the management of risk. The Commissioner is required to sign a Statement on Internal Control for the MPS, on behalf of himself and the members of his Management Board.

The Commissioner has supported the introduction of a new MPS Key Internal Control Framework and tasked the Director of Risk Management to co-ordinate the efforts of the MPS to ensure a sound system of internal control in key elements of the internal control environment listed in Section 3 of this Statement and to co-ordinate appropriate response to the significant control issues listed in Section 5 of the Statement.

This Statement is signed by the Commissioner and will be referred to within the published MPA Statement on Internal Control.

2. The purpose of the system on Internal Control

The system of internal control is designed to manage risk to a reasonable and foreseeable level rather than trying to eliminate all risk of failure to achieve policies, aims and objectives. This Statement can therefore only provide a reasonable and not absolute assurance of the effectiveness of the systems of internal control.

This Statement (a mandatory requirement under the Accounts and Audit (Amendment) (England) Regulations 2006) has been prepared for the 2006-07 period to show the position as at that time on internal controls as well as outlining future actions, which the MPS will be undertaking to ensure that the prescribed controls are operating effectively.

3. The Internal Control environment

The key elements of the MPS’s internal control environment are now outlined in a Key Internal Control Framework document, which forms the basis of the reporting areas of this Statement and these are as follows:

• Facilitating effective strategy policy and decision-making – corporate values are reviewed appropriately as part of a 3-year strategy with the MPS Management Board operating framework (taking in to account Management, Investment and Performance Boards). The Intelligence Steering Group oversees the implementation of the intelligence strategy. The Corporate Strategic Assessment, analysis of the National Policing Plan, impact assessments on all corporate policies, integrated business and financial planning process, resource allocation formula and MPA oversight (committee structure) are all key controls in this area
• Performance - establishing and monitoring the achievement of objectives to ensure that high quality services are delivered efficiently and effectively. The Performance Board (part of the overall Management Board operating framework) monitors policing plan targets. There is also a National Standard for Information Recording (NSIR) in place to deal with on-going issues around CAD codes and the Crime Recording Oversight Group (CROG). MPS representation on ACPO Performance Management Business Area (PMBA), Police Performance Steering Group (PPSG), Policing Performance Assessment Framework Steering Group (PPAF), MPA Planning and Performance Review Committee (PPRC) and Greater London Authority (GLA) Budget Review Sub-Committee are all key controls in this area.
• Management of Change Processes – The Met Modernisation Programme (MMP) Delivery Board (backed up by change, strand and project leads) remain the principal vehicles of control with regards to the management of major change in the MPS. A consultation and communications strategy together with benefits and risk strategies help deliver successful change management. The Modernisation Delivery Unit (MDU) oversees all change programmes and projects within MMP. Through management of the “Approvals Process”, the MDU also ensures that significant investments in change are made with due regard to factors such as the benefits that they will deliver. This applies to investments both within and outside the MMP.
• Ensuring compliance with statutory obligations, laws, regulations, guidance and established policies and procedures:
  • Compliance - Diversity – Co-ordination of MPS activity in relation to Morris/Ghaffur/Lawrence/Commission for Racial Equality reports continue with the development and implementation of the MPS Equalities scheme, implementation of the Race Equalities scheme and the Race & Diversity learning development programme.
  • Compliance - Environmental Management – Implementation of the MPS environmental strategy and monitoring of the environmental programme is undertaken via the Environmental Strategy Steering Group with an annual MPA environmental report. Regular reports are submitted to Investment Board, and the MPA/GLA (annual budget return report) on MPS environment issues.
  • Compliance - Policy – The policy management policy undergoes a process of continuous improvement with regular reports to MPS Management Board.
  • Compliance - Procurement – Quarterly and annual reports on procurement/outsource service/routine contracts programme are submitted to Investment Board, MPS Management Board and the MPA. MPA approve all procurement activity for contracts in excess of £5m.
  • Compliance - Safety & Health - The S&H policy is regularly reviewed and backed up by core training, a risk assessment process, reactive monitoring and audit process. Monthly monitoring reports go to MPS Management Board and quarterly reports to Strategic Health & safety Committee and MPA Corporate Governance Committee. Links with representatives from Trade Unions, Federation, Superintendents Association and Business Groups ensure stakeholder consultation.
• Identifying, assessing and managing the key risks to the MPS’s objectives - the risk management strategy has now reached stage 4 (out of 6) of the MPS risk management maturity model with an on-going review of the Business Risk Management Standard Operating Procedure, the Service-wide introduction of the ‘bow-tie’ risk analysis tool, a variety of risk based training courses delivered in house, phase 2 of the Engagement Programme continuing and quarterly reports to the MPA Corporate Governance Committee. The Corporate Risk Review Group has been formed to act as a conduit between Business Groups and the Management Board in relation to the identification and management of corporate risks.
• Insurance management – MPA/MPS Strategic Insurance Group meet quarterly and set/oversee the insurance strategy with the assistance of an external insurance broker. There is an annual review of all policies (agreed by MPA Finance Committee) with quarterly reviews of the self-insured provision. The Personal Insurance Indemnity Policy continues to be underwritten by the MPA.
• Business Continuity - minimising disruption to MPS business as usual arising from incidents involving processes, people, buildings, ICT systems and the supply chain – The Resilience and Business Continuity Board meet quarterly. A business continuity policy and standard operating procedure is in place resulting in the deployment of business continuity plans. Inter-departmental supply chain/dependency mapping as well as supplier/contractor supply chain monitoring is undertaken. The IT Resilience and Disaster Recovery Survey is ongoing.
• Ensuring effective corporate financial management and reporting:
  • Financial Reporting – Annual published MPA accounts including external audit opinion, scrutiny by MPA Members and District Audit annual letter are key controls in this area. Working papers are compliant with the Chartered Institute of Public Finance and Accountancy Statement of Recommended Practice (CIPFA SORP).
  • Financial Management – A medium term financial strategy incorporates a capital strategy revised on an annual basis and a costed 3-year corporate business plan. Financial management decisions are made in accordance with the direction set by the corporate business plan. A balanced revenue budget process involves all budget holders, is reviewed by senior officers & members and is revised annually taking in to account out turn and the medium term financial strategy. There is also, budget monitoring, capital programme management, cash flow forecasts, savings and efficiency reports, financial regulations compliance, asset management and all are backed up by financial systems. Partnership financial performance management systems are also in place.
  • Financial Standing – A balanced budget process with monitoring arrangements is in place for spending (to ensure budgets are maintained) and reserves (to ensure levels are adequate).
  • Productivity - The Productivity Workplan is being developed to respond to the need for continuous performance improvement in an environment of ever increasing budgetary pressure. It’s overarching aim is to ensure the efficient and effective use of all the resources as well as achieving the outcomes set out in the Policing Plan. In order to achieve this will require a significant amount of work, some of which is about managing existing work programmes, some of which will be new work.
• Ensuring MPS information is trusted, accessible and usable - The implementation of the Information Management Strategy has been subsumed within the Information Quality Portfolio, overseen by the Information Quality Portfolio Board, which meets monthly. The Information Management Policy and Standard Operating Procedures are appropriately reviewed. Other oversight groups include the Information Management Steering Group, the Metropolitan Police Security (METSEC) Programme Board and the MPS Information Authority, Information Management Group Performance/Tasking. Work continues on the implementation of Bichard recommendations through the MPS MoPI Programme, which is overseen by the MoPI Programme Board (quarterly).
• Working for and with the community to promote its well being and exercising leadership as necessary – There is a joint MPA/MPS community engagement strategy, a toolkit of engagement methods for staff, minimum standards publication, engagement training, intranet pages and consultation with external stakeholders. A central engagement infrastructure is in place with quarterly reports to the Diversity and Citizen Focus Command Team. There is also a corporate approach to impact assessments and a methodology to identify community tensions and trends.
• Defining, communicating and monitoring professional standards expected of all personnel – The Professional Standards Strategic Committee meet quarterly and is supported by an overarching policy with a four-strand strategy (Intelligence, Prevention, Enforcement and Corporate Strategy/Priorities). Quarterly reports are submitted to the MPA Professional Standards and Complaints Committee.
• People Management: defining, communicating and monitoring standards of individual performance expected of all personnel - Human Resources (HR) policies and standard operating procedures are reviewed in line with internal requirements. Regular reports (e.g. HR scorecard reports) are received by HR Board and the MPA Professional Standards & Complaints Committee. Also, the Personal Development Review process, the induction, training and skills programme together with the new mandatory training and development for new managers are key controls here. Further, there is the HR integrated planning and performance management system with strategy, business planning, audit and evaluation processes.
• Statement on Internal Control process – Quarterly update reports are prepared for the MPA Corporate Governance Committee on the previous years action plan and the deployment of the MPS Key Internal Control framework now forms the structure around which the Statement gathering and reporting and assurance process is based.

4. Review the effectiveness

The initial part of this section (of the MPA published SIC) is completed by the MPA and is endorsed by the MPA Director of Internal Audit with commentary and includes the assurance scores.

Progress on the 11 Action Points detailed in last year’s Statement is summarised as follows;

• The Intelligence Strategy, MMP and Change Programmes – The formation of the Met Intelligence Bureau continues with structures and systems coming together for formal launch in April 2007. The governance and reporting structure of the MMP continues to co-ordinate and develop corporate consistency in its approach to the cohesive modernisation of the MPS.
• Policies and Procedures – The Policy Management policy has been reviewed and as a result, the policy workbook is being updated to take account of the new Equality Impact Assessment. The Health & Safety section is also being updated and a new section is being added to address Management of Police Information (MoPI) issues affecting the development of policy.
• Business Planning – A PESTELO analysis now feeds into the Corporate Strategic Assessment on a quarterly basis with this information also feeding into the business planning process. Risks and issues identified through scanning activity will be channelled directly to the relevant business groups for them to take ownership. Emerging corporate risks will be referred to the Corporate Risk Review Group.
• Performance –The work of the MPS Inspectorate continues to be focused on the critical performance areas. The Service inspection, review and audit policy is being revised to incorporate all elements of inspection activity within the MPS and work is ongoing regarding the enhancement of the quality assurance function through the development of a corporate Performance Improvement Framework.
• Corporate Governance - The MPS and the MPA are working towards implementation of a new Corporate Governance Framework with further development to be undertaken upon publication of the police force version of the new CIPFA/SOLACE (Society of Local Authority Chief Executives) governance framework.
• Risk Management – Work continues in developing minimum standards for managing risk in a partnership context and a framework of risk management competencies. A high level risk financing strategy has been agreed by the MPA/MPS Strategic Insurance Group.
• Business Continuity – Templates for Business Continuity Plans together with supporting templates for Business Impact Assessment, Customer/Stakeholder Analysis, Resource Requirement and Support/Supply Chain analysis have been completed and submitted to ACPO. The revised MPS Business Continuity Policy, which is supported by a set of minimum standards for Business Continuity Planning has been published. The new minimum standards are consistent with the newly published British Standard for Business Continuity Management (BS25999).
• Community - The new Diversity and Citizen Focus Directorate has now been created and through the work of the Citizen Focus Policing programme, a number of initiatives have been introduced that have had a positive feedback on service delivery. There continues to be progress in developing Safer Neighbourhoods analysis and research in relation to training programmes, problem solving, survey analysis and producing structured information on local priorities for Safer Neighbourhood Teams.
• Information Management – The MoPI programme board and project team are working towards addressing the national requirements of the Bichard report. MPS policies have been reviewed for MoPI compliance while project / change management and IT systems management issues continue to prove challenges in this area.
• Financial Management – The action plan arising from the Police Use of Resources assessment will be used to monitor progress. The work around the alignment of corporate and financial planning processes continues as does the monitoring of audit recommendations /key controls.
• People Management –The Personal Development Reviews (PDR) process continues to be developed and monitored with an emphasis on Citizen Focus and Respect for Race and Diversity. The promotion process continues to be developed and the Leadership Academy is prioritising areas that will have the greatest positive impact on the MPS. The negative impact of loss of staff to the Serious and Organised Crime Agency (SOCA) has not been as great as anticipated. A recruitment campaign is underway for Intelligence Analysts.

5. Significant Internal Control issues

Programmes of work are in place for the 2007/8 period, reflecting corporate priorities as enshrined in the MPS Corporate Strategy and Met Modernisation Programme (MMP), which will help develop and enhance internal controls and risk management within priority areas. Key internal control and risk management areas for action for 2007/8 are:

• Performance – The Performance Board is overseeing work on the NCRS action plan and self audit scheduled to commence soon and an MMP performance framework is being developed.
• Change – a new project and programme managers network is to be initiated offering guidance and support to those directly involved in the delivery of projects and programmes.
• Intelligence – The Intelligence Covert Policing and Tasking Steering Group is bringing together the work programmes in to a single cohesive benefits led programme and a Programme Management Office (PMO) is to be developed to support this.
• Policy – A new policy workbook to include the Equality Impact Assessment process and a Management of Police Information section is to be produced.
• Safety & Health - (B)OCUs and Business Groups are to produce local Health and Safety plans including local policy review, consultation, accident reduction targets, active monitoring and risk assessment review.
• Procurement – A review of contract regulations is to be carried out.
• Risk – To build on the success of the Corporate Risk Review Group, make greater use of the risk bow tie methodology, continue to provide on-going training programmes, further development work on deploying a partnership risk management methodology and development of an overarching corporate governance framework upon which future statements will be based.
• Continuity – Development of the corporate critical activities will form the bedrock for business continuity planning. Standard Operating Procedures are to be re-launched in early 2007/08 supported by workshops/ seminars to key officers/staff and ongoing support and compliance monitoring arrangements. Olympics and flu pandemic pre-planning are continuing.
• Financials –The business planning process is being developed further to build on the success of the new business and financial planning framework developed last year. Reinstatement of the Capital Programme Review Board with strengthened terms of reference and revised governance arrangements introduced for the capital programme will ensure that the most appropriate use is made of existing resources and funding sources, in accordance with the direction set by the corporate strategy.
• Information – A framework for the governance of MPS information is currently under development as is the data quality review and improvement programme (via the Data Quality Team)
• Community engagement - The engagement strategy and minimum standards are to be reviewed and updated during the year. Training in relation to community impact assessments and also work to develop a new multi agency “community tension monitoring” framework is ongoing.
• Human Resources - Over the next 12 months, the Planning and Performance Unit will look to integrate the risk management and performance management processes. In relation to MetHR, work on data capture and output will continue to ensure that strategic direction remains on track.

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