Minutes

Minutes of the meeting of the Corporate Governance Committee of the Metropolitan Police Authority held on 14 March 2008 at 10 Dean Farrar Street, Westminster, London SW1H 0NY.

Present

Members

• Toby Harris (Chair)
• Faith Boardman (Deputy Chair)
• Karim Murji
• Rachel Whittaker (item 1 –18)

MPA officers

• Catherine Crawford (Chief Executive)
• Ken Hunt (Treasurer)
• Alan Johnson (Policy Officer, Human Resources)
• Peter Tickner (Director, Internal Audit)
• Ruth Hastings Iqball (Committee Officer)

MPS officers

• Peter Brown (Head of Compliance, Property Services)
• Nick Chown, (Director, Risk Management)
• Dani Fitzgerald (Inspection Liaison Analysis Unit)
• Graham Fulcher (Senior Projects Manager, CO11)
• Allan Gibson (Commander, Covert Policing, SCD) (item 15 only)
• Nick Kettle (Head, Safety and Health Risk Management)
• Anne McMeel (Director of Strategic Finance)
• David Willis (Divisional Director Estates Management, Property Services)

Co-opted member

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

Also in attendance

• Mike Haworth-Maden (District Auditor, Audit Commission)
• Martin Searle (Audit Manager, Audit Commission)

36. Apologies for absence

(Agenda item 1)

Apologies were received from Jennette Arnold and Joanne McCartney (members).

37. Declarations of interests

(Agenda item 2)

No declarations of interest were received.

38. Minutes of the Corporate Governance Committee (part 1) - – 7 December 2007

(Agenda item 3)

The minutes of the previous meeting were considered.

RESOLVED – That the minutes of the Corporate Governance Committee held on 7 December 2007 be signed and agreed as a correct record.

39. Internal audit progress report

(Agenda item 4)

The Committee received a report detailing the work of Internal Audit for the period December 2007 to February 2008. It summarised the results of significant Internal Audit work to date and the adequacy and effectiveness of control in MPS systems where Internal Audit had issued final reports since April 2007. The revised Internal Audit Strategy for the next three years was also attached.

In answer to questions, the Chair was informed that in a competitive market auditors had been lost to Internal Audit because of the time taken to vet prospective staff. There had been a dialogue between Internal Audit and the MPS on this subject and a more robust arrangement put in place for the future. Members asked questions about the risk based approach used to determine the annual audit plan. The Director of Internal Audit undertook to provide more information outside the meeting. Members were also concerned that largely because of staff shortages about fifteen percent of the programme of work for 2007/8 remained uncompleted. It was felt this was something the MPA should consider resourcing better.

RESOLVED - That

1. the progress made in achieving the 2007/08 Internal Audit Plan be noted;

2. the current Internal Audit evaluation of the adequacy and effectiveness of internal control in the MPS be noted; and

3. the revised MPA Internal Audit Strategy be approved.

40. Statement of internal control - quarterly update

(Agenda item 5)

The MPA had been required to include a Statement of Internal Control (SIC) in its financial statements since 2003/04. Members received a report providing an update on progress in addressing the significant internal control issues included in the statement of accounts for 2006/07. The report had been circulated to members with less than five clear working days’ notice, however Chair agreed to receive it as an urgent item under the provisions of section 100B (4b) of the Local Government Act 1972 as it it needed to be considered at this meeting.

RESOLVED – That the progress in addressing the significant internal control issues included in the 2006/07 Statement of Internal Control for the MPA be noted.

41. Police use of resources 2006/07

(Agenda item 6)

This report brought to the attention of the Committee, the Audit Commission’s Annual Governance report on the MPA audit 2006/07. The report had been circulated to members with less than five clear working days’ notice, however Chair agreed to receive it as an urgent item under the provisions of section 100B (4b) of the Local Government Act 1972 as meetings were only held quarterly.

Members hoped that something more tangible than a process came out of the report. The Director of Strategic Finance stated that she did not wish to see the MPA and MPS remain assessed as having adequate arrangements (a score of 2) for financial management. She was undertaking an internal review with the aim of embedding budget and planning processes and working with the audit commission and inspectorate in taking the work forward.

RESOLVED – That the Audit Commission’s Police Use of Resources (PURE) feedback report be noted.

42. Appointment of the authority's external auditor

(Agenda item 7)

A report was received informing members that the Audit Commission Board had appointed the Audit Commission’s in-house audit practice as the MPA’s external auditor for four years from 2008/09. Les Kidner had been nominated as the Engagement Lead (District Auditor) for 2008-09. The current District Auditor, Mike Haworth-Maden, thanked members, the Chief Executive and the Treasurer for their assistance. The Chair thanked him for his attendance at these meetings.

RESOLVED – That the Audit Commission’s appointment of the Audit Commission’s in-house audit practice as the Authority’s external auditor for four years from 2008/09 and Les Kidner’s appointment as Engagement Lead (District Auditor) for the audit of the accounts for 2008/09 be noted.

43. Local code of corporate governance

(Agenda item 8)

This report informed members of the development of a Local Code of Corporate Governance.

RESOLVED – That

1. the draft Local Code of Corporate Governance be recommended to the full Authority for approval; and

2. an annual assessment of the extent to which the Authority had met the aspirations set out in the Code be summarised in the Annual Governance Statement.

44. MPS corporate governance - MPS audit and inspection strategy

(Agenda item 9 A)

(This report was considered after 9B.) The MPS was subject to audit and inspection, in particular by HMIC, Audit Commission and the MPA. A report was received outlining an MPS Audit and Inspection Strategy adopted by the MPS and the associated Implementation Plan as a means of ensuring the MPS engaged positively with these services and used audit and inspections to improve the services it delivered.

The Chair welcomed the raising of the profile of risk in the MPS, but asked if the HMIC, Audit Commission and the MPA had been consulted about the Strategy and Plan. He was told that the draft had been shared recently with the Director, Internal Audit and that some initial comments were reflected in the report but not other interested parties. The Director of Strategic Finance highlighted the intention, as set out in the report, to consult on the draft protocol. The Chair said this must be done as the HMIC, Audit Commission and the MPA had statutory functions to fulfil. Members felt the report treated the MPA as just another stakeholder, and did not properly recognise its paramount role. The Director of Strategic Finance said the MPS was clear about the statutory framework within which it operated, but did not want to just await inspection but rather be positively engaged in the process. The Chair felt she might be clear about the statutory framework, but felt colleagues were not. He accepted this was an attempt to embed these processes, but expressed a wish to see further discussion with the statutory bodies in relation to the protocol, and further sight of the protocol. It was noted that the Chief Executive represented the MPA on the MPS’s Performance Board where the service implications of the delivery of the inspection and audit programme would be monitored.

RESOLVED – That the MPS Audit and Inspection Strategy and Implementation Plan including the proposed discussion with the audit and inspection services on the draft protocol be noted.

45. MPS corporate governance  – MPS corporate governance framework update

(Agenda item 9 B)

(9B was considered before the report at 9A.) This report provided an overview of the MPS corporate governance work programme. It included an update on the plans set out at the end of last year to further develop the current MPS corporate governance framework, including a summary of the findings of the gap analysis carried out against the final version of the CIPFA / SOLACE corporate governance guidance and the programme of work developed in response to this. The framework supported the MPS in carrying out its functions in accordance with the powers delegated to the Commissioner by the MPA. The MPS Management Board considered this report on 20 February 2008.

The Committee was surprised by the headline set of indicators. The Director of Strategic Finance stated these were backed by 60 other indicators, some of which were standard in other industries and unrelated to policing. The indicators were queried and members were told that they were diagnostic tools and did not always have right or wrong answers. Members felt partnerships were an important gap in the report. The Director of Strategic Finance agreed. Members asked to see the 60 indicators, and the Chair suggested that they should be monitored by the MPA.

RESOLVED – That

1. the report be noted; and

2. that members see the 60 indicators and some of the rationale behind them at a future meeting.

46. MPS corporate governance - MPS scheme of delegation

(Agenda item 9 C)

This report presented details of the Scheme of Delegation for the MPS, which came into effect on 1 October 2007. The Scheme was developed in line with good governance practice and in support of compliance with the MPA Standing Orders. The scheme formed an integral element of the MPS’s corporate governance framework and system of internal control. The Director of Strategic Finance informed members that the SAP system was currently being upgraded, and would go live in October 2008. Contract regulations were being discussed with the MPA. The Chair welcomed the process.

RESOLVED – That

1. the amended MPS Scheme of Delegation be noted; and

2. the programme of work in support of the development of the Scheme of Delegation and supporting processes be noted.

47. Business risk management team update

(Agenda item 10)

The Committee received a report on progress made by the MPS in the areas of business risk management and insurance management. Corporate governance matters, including the contributions of the Business Risk Management Team, were now reported to Corporate Governance Committee by Strategic Finance. The Director, Risk Management, stated that the MPS would be reviewing the joint MPS/MPA risk management strategy (with the MPA), the MPS risk management policy and process in the light of the British Standard for Risk Management and ALARM National Risk Management Framework for the Police Service (both still in draft). The results would be reported back in June. Linda Duncan, a co-opted member, said she would like to see the plan of work to be done to get the MPS to where it would like to be in relation to risk in 12 months time. She was told this was being prepared, and that the work programme would be bought to the Committee when approved. A request was made to see the maturity model. The Director, Risk Management, said he would be happy to bring this to the Committee in June.

RESOLVED – That

1. progress to end January 2008 on business risk management and insurance management be noted;

2. progress on the measurement of MPS risk management be noted; and.

3. the work programme and maturity model be presented to the committee in June.

48. Corporate charge card

(Agenda item 11)

This report provided details of the work completed in relation to the corporate charge card investigation, first reported to the full Authority in November 2007. The report also detailed the results of the recent procurement exercise completed to appoint a new corporate charge card provider and outlined the planned improvements to the control systems to be introduced by the MPS and the new provider in April 2008.

The Director of Strategic Finance stated that the figures had now improved upon those given in paragraph 10 and that about half the accounts still unreconciled were for under £200, as work had been concentrated on reconciling the larger accounts. The Chair asked how far the MPS had proceeded in simplifying the process and providing new guidance. He was told the new guidance was already being piloted, and that another piece of work would be undertaken within the next 12 months to review expenses. In answer to questions, members were told that cardholders who had left the MPS’s employ were being contacted for information, and that cards were now allocated to a post not person. If cards were not used in 12 months, business groups were asked if the card could be deleted. They were also new exit arrangements for cards. The Finance Services Department was now providing regular updates on card usage so business groups could monitor their usage.

RESOLVED – That

1. the actions that have been completed in processing outstanding Corporate Charge Card reconciliations be noted;

2. the progress with ongoing investigations being undertaken by the Directorate of Professional Standards and MPA Internal Audit be noted; and

3. new management processes being put in place to avoid a recurrence of the issues identified be endorsed.

49. Update on MPS health and safety performance

(Agenda item 12)

A report containing a summary analysis of MetAir accident data comparing two reference periods February 2006 to January 2007 and February 2007 to January 2008 and a commentary on other aspects of Health and Safety was received.

embers noted that the Police Federation believed some (B)OCUs allowed their officers to remove their MetVest in hot weather because of concern about heat stress; and that the Strategic Health and Safety Committee was reviewing the broader policy for the wearing of MetVest in conjunction with CO11. They were told that the use of Metvests was mandatory in some OCUs, and in others its use was left to local discretion based on risk assessment. Members asked if this data was kept centrally. The Head, Safety and Health Risk Management, undertook to find out and let the committee know.

RESOLVED – That

1. the report be noted and

2. members be provided with more information on recording of the use of MetVests.

50. Appointment of co-opted members

(Agenda item 13)

This report proposed the appointment of co-opted members to the Corporate Governance Committee for 2008/09.

RESOLVED – the nominations of Richard Stephenson and Linda Duncan as co-opted members of the Committee for the committee year 2008/9 be approved, subject to ratification by the full Authority.

51. EXCLUSION OF PRESS AND PUBLIC

(Agenda item 14)

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.

Part 2

52. Governance of covert policing

(Agenda item 15)

This report detailed developments within the MPS Intelligence, Covert Policing and Tasking Programme chaired by AC Specialist Crime Directorate and the specific impact upon Covert Policing arrangements within the MPS. It provided information on MPS investment in a Head of Profession for covert policing, formation of a Standards Unit, Central Authorities Bureau and introduction of a Covert Policing Governance Structure. It also set out the current position of eight Internal Audit reports, published before 2007/08, and two new audits completed during the 2007/08 inspection year and provided an end of year update on the 2007/08 MPS Covert Finance Strategy and preparations for the 2008/09 Strategy.

RESOLVED – That

1. MPS developments within the Intelligence, Covert Policing and Tasking Programme, with associated business benefits, be noted;

2. the MPS response to Internal Audit reports be noted and approved; and

3. the update in relation to MPS Covert Finance Strategy be noted.

53. High-risk audit recommendations

(Agenda item 16)

Members received a report confirming the status of outstanding high-risk accepted recommendations made by Internal Audit as at February 2008, and providing details of ongoing work to enhance the process by which the MPS responded to audit recommendations. Questions were asked about the reclassification of the risk in relation to the storage and display of police artefacts, and a member asked for further information outside the meeting.

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

54. Corporate charge card - exempt appendix to report 11

(Agenda item 17)

The exempt appendix to report 11 was considered.

55. Future governance of sports clubs (oral update)

(Agenda item 18)

The Divisional Director, Estates Management Property Services, stated that strides had been made in getting the sport clubs on a proper legal footing, by making, them leasehold properties and responsible for health and safety compliance. It was anticipated that the sports clubs becoming limited companies. The Chair asked about likely timescales for this, and suggested that when a report was forwarded to the Finance Committee, it contained a recommendation about delegation should decisions need to be made in the period following the GLA election.

RESOLVED - That the oral report be received

56. Health and safety audit - sports clubs

(Agenda item 19)

This report updated members on the progress the sports clubs had made, since the initial audit in August 2006, on the recommendations contained within the Turner and Townsend Health and Safety Audit. Members noted the report. They agreed that if the leases were not signed, a further report should be received

RECOMMENDATION – That the report be noted and a further report be received only if the leases were not signed.

57. Barriers

(Agenda item 20)

The committee received a report on health and safety issues in relation to the use of concrete vehicle blockers primarily designed for use in traffic management situations to safeguard workforces deployed to highway maintenance.

RESOLVED - That report was noted.

The meeting ended at 12.50 pm

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