MPS Corporate governance framework update

Report: 8
Date: 12 June 2008
By: the Director of Resources on behalf of the Commissioner

Summary

This report provides a progress report on the Metropolitan Police Service (MPS) corporate governance work programme. It includes an update on the work programme previously reported to the Committee and identifies additional projects added to the programme following the Annual Assurance Statement Review.

A. Recommendation

That the Committee notes the report

B. Supporting information

Current Corporate Governance Arrangements

1. The MPS is striving to achieve excellence in corporate governance. Management Board has approved an established ‘Temple’ model of corporate governance that reflects current good practice and was detailed in previous reports to the Committee.

2. A gap analysis of the current MPS Corporate Governance Framework against the elements of the CIPFA / SOLACE Good Governance Framework informed the development of the corporate governance work programme. The work programme is managed and monitored through the MPS Corporate Governance Coordination Group with regular progress updates to the Performance Board and this Committee.

Summary

1. The corporate governance work programme consists of the following workstreams. The current status of each workstream is provided below with more detail set out in section D of this report.

   Table 1: Corporate governance work programme workstreams

4. In developing the MPS Annual Assurance Statement, the following areas of work were identified and will be undertaken to enhance MPS governance arrangements. Given that the preparation of the Annual Assurance Statement has just been completed, some of these new workstreams are in the early stages of development. Updates on projects ‘under development’ will be provided in the next update to this Committee.

Table 2: Corporate governance workstreams under development

Progress update

Corporate Audit and Inspection Strategy

D1. The Corporate Audit and Inspection strategy and implementation plan were considered by the Committee as part of the last Corporate Governance update (14 March 2008).

D2. A protocol for working with audit and inspection agencies has been developed. Consultation with the agencies is continuing to take place with a view to agreeing the final protocol by the end of May.

Scheme of Delegation

D3. A revised Scheme of Delegation has been approved by the MPS Management Board and was included in the last corporate governance report to this Committee (14 March 2008)

D4. On 7 May 2008, the MPS Management Board approved a proposal to bring together a number of Resource-led workstreams under a single governance structure managed as a ‘Developing Resource Management’ (DRM) programme with the objective of providing added value to the Service.

D5. The Scheme of Delegation is included in the second phase of the DRM programme. The proposed governance arrangements would ensure that strong links are developed and maintained with other related corporate programmes particularly: THR, Corporate Governance and ERP Centre and SAP upgrade.

D6. The work required to establish a consistent Scheme of Delegation across the Service should not be underestimated. This work is currently in progress and data gathering will take place during July and August with an operational scheme expected to be in place by the end of October. However, to avoid duplication and ensure appropriate acceleration towards implementation the work needs to be integrated with the work to upgrade SAP. It will also influence the development of the SAP procurement system. Given the timing of the SAP upgrade it is likely that an interim technical solution may, however, be necessary to support the implementation of the Scheme of Delegation in the autumn with full integration expected by the end of the financial year.

Development of corporate health organisational performance indicators

D7. As identified at the last Corporate Governance Committee, at its meeting on 27 February, Performance Board agreed the adoption of a set of Corporate Health Organisation Indicators to provide the Management Board with a tool to improve its ability to manage effectively and to provide accountability to the MPA and stakeholders. These indicators sit alongside police performance indicators and financial monitoring information to give a rounded picture of the Service.

D8. The agreed indicators, which in the main were already being collected and monitored locally, support the MPS ‘temple’ model of corporate governance under the three pillars. To reflect all the different elements of the MPS Corporate Governance Framework the full set of 60 indicators will be monitored, however the a headline set of 13 indicators will be reported to Performance Board quarterly with an additional 3 being reported annually. The remaining supporting indicators will be monitored locally and reported on an exception basis.

D9. Since the February meeting of Performance Board further work has been undertaken with business groups to ensure that adequate reporting arrangements are in place for each of the indicators. Some minor amendments were made to the indicators in the light of this. On 23 April, the Performance Board agreed the final set. The indicators will be built into the budget / business plan and will form part of the developing arrangements for reporting on the operation of the Service including policing performance.

D10. The MPS is required to produce an Annual Assurance Statement, which details how it has achieved proper governance standards in each financial year. To support this the Service needs to consider the frameworks and structures needed to provide evidence that governance issues are reported, and acted on throughout the year. The introduction of this suite of indicators will help the MPS achieve this.

D11. The full set of proposed indicators are set out under the ‘pillar’ of the temple model that they support in Appendix 1.

MPS Partnership Framework

D12. A high-level Partnership Strategy for the Service and implementation plan was agreed by the Management Board on 28 May 2008. It is to be presented to the MPA Finance Committee meeting on 19 June.

D13. Partnership guidance, the main purpose of which is to declare minimum standards of governance and give necessary guidance to members of staff engaged in partnership working, is under development. The framework will incorporate the needs of PURE reporting, year-end accounting and other inspection requirements. The Standard Operating Procedure on risk management in respect of partnerships has also been developed for inclusion in the toolkit.

D14. The toolkit will be submitted to the MPS Management Board for approval by 31 July 2008 and will be rolled-out across the Service thereafter.

Review of risk management policy and process

D15. The MPS Corporate Risk Register, and the process by which risks are identified for inclusion in the register, has been the subject of a thorough - but quick time - review led by the Director of Strategy & Improvement and Director of Risk Management. Benchmarking has been undertaken with the other members of the GLA Group. The monthly corporate business risk report process remains in temporary abeyance until the review is complete and the way forward approved by Management Board. Detailed proposals have been worked up and will shortly be presented to Management Board.

D16. A review of the MPS approach to management of strategic risks against the requirements of the British Standards Institution Code of Practice for Risk Management and national police service risk management framework (reflecting the agreed recommendations from the audit of MPS risk management) will be carried out following the publication for the new Code of Practice which is expected in October 2008.

D17. Various 'risk' indicators have been included in the MPS suite of corporate organisational health indicators. These cover risk registers, business continuity plans, high-risk audit recommendations, and the internal control environment. These indicators will be revisited when the ALARM / Audit Commission risk management KPIs have been updated and the 'risk' indicators adjusted as may be necessary at that time.

D18. The formal draft report on the audit of MPS corporate risk assessment and risk management has been received and a management response submitted to Internal Audit. Work is progressing in respect of the agreed recommendations.

D19. The Business Risk Management Team received the 'European Risk Management Team of the Year, 2008' at the recent StrategicRISK Awards.

Enhanced MPA / MPS Fraud and Corruption Awareness Strategy

D20. Work has commenced on developing a joint MPA/MPS framework for improving the awareness of fraud and corruption. An Audit Commission toolkit is being prepared which includes the use of a tailored online self-assessment questionnaire, workshops and follow up sessions.

D21. Phase One of the process is intended to target the most senior levels within the MPS and will include senior finance and resources staff. Timescales for this phase are for completion by December 2008 and for the cascading of information to all levels of the organisation thereafter. Also, existing learning vehicles will be used to cascade training, including the development of a module within the leadership training events covering fraud and corruption awareness.

MPS Complaints and Compliments (policy and resource)

D22. The Citizen Focus Policing Programme is continuing to manage the development of a reward and resolution process, which will deal with quality of service issues. The aim is to provide opportunities for service recovery by directly addressing customer concerns and rewarding staff for good service provision.

D23. A roundtable exercise, in partnership with the Institute of Customer Service, captured best practice from leaders in service complaint handling. The participants, who included business group representatives and external service providers, identified the key characteristics of an effective service recovery process. These were then used to draft a process and associated guidance, which was circulated widely for consultation. The feedback from the consultative exercise led to revision of the process and guidance.

D24. The consultative exercise also established that any future progress depended upon the development of a supportive document that captured the promises the MPS made to its citizens. This is presently being developed and is scheduled to be available October 2008. The Service Recovery process will be revised to align with the promises.

D25. A number of workstreams appeared in the original corporate governance work programme because they were priorities for development at the time. Since then the appropriate work has been undertaken to allow them to be managed as ‘business as usual’ from this point on. This applies to the following workstreams:

• Consolidated External Audit Action Plan - Strategic Finance continues to produce a monthly action plan, which identifies and monitors progress against financial audit recommendations. It incorporates recommendations arising from the Annual Audit letter, Interim Systems Audit, PURE and any outstanding queries from the HMIC Baseline Assessment and identifies issue owners at both Management Board and practitioner levels. This report is also reviewed on a regular basis by the joint Strategic Finance and Business Support working group, this ensures ownership of issues by Lead Accountants and that progress is formally monitored. It is intended that this plan will be developed to incorporate internal audit recommendations.
• Capital and revenue budget and business planning – it is an on-going aim of the business planning process to deliver greater integration of the business/financial planning framework reflecting a developing approach to strategic planning in the MPS to ensure that financial planning and budgeting are driven by strategic priorities and business needs and that resources are allocated in line with the MPS objectives. This aim was central to the creation of the new Strategy and Improvement Department following the review of the MPS corporate centre.
• Environmental impact analyses - a template and guidelines for assessing the environmental sustainability impacts of business cases, and contracts have been published as part of the business case preparation guidelines and contracts board approval process. The MPS Environment Team provides advice and assistance as required. Compliance to the requirement is steadily improving across business groups as awareness increases. The requirement has been included within the Corporate Business Plan guidance, which has been developed to ensure that business groups consider their contribution to Corporate Social Responsibility (environment, equalities, and health and social inclusion) as part of their objectives.

D26. The following projects have been added to corporate governance work programme following the preparation of the Annual Assurance Statement

Safer Neighbourhoods panel training and business / youth engagement

D27. The Safer Neighbourhoods Panel Training pilot has been completed on four Boroughs. The planned roll out is due to commence in July 2008 to be delivered over two years for all 630 Safer Neighbourhood Panel Chairs. Quarterly reports will be provided to the Safer Neighbourhoods Programme Board

D28. Business (Retail) Engagement: Pilot work is ongoing on eight Boroughs. The Business Key Individual Network Survey (stage 1) was completed in January 2008. Follow up survey to be completed by October 2008. A Tool Kit for Business Engagement will follow in January 2009.

D29. Youth Engagement key points:

• All 185 priority Schools have dedicated SSP Officers. The remaining secondary schools have support of SNT.
• 32 VPC schemes by Sept 08, two pilot schemes in schools by September 2008, pan-London uniformed youth service project in place Dec 08.
• Kickz Project – 64 schemes in place September 2008
• Miss Dorothy Schools Engagement Programme – training June-October 2008, delivery pan-London March 2009.
• Prince’s Trust programmes – programmes set up September 2008.
• Met-Track – June 08 – operational in 16 boroughs September 2008.
• Be Safe ‘knife/gun crime’ workshops – delivery of knife/gun crime workshops alongside Kickz programme September 2008.
• Globe Education Project – delivery of crime reduction education programme for Lambeth Schools September 2009
• BPA Voyage Programme – delivery of VOYAGE programme targeting Black and Minority ethnic young people; 2007/08 Young Leaders For Safer Cities completes July 2008. 2008/09 programme recruitment and induction process started.

Implementation of the Taylor reforms to police misconduct procedures

D30. The Criminal Justice and Immigration Bill is the vehicle for these legislative changes. It is expected to receive Royal Assent in May 2008. This is later than anticipated but affords more time for the Police Service to train officers and staff in their new roles and responsibilities. The proposed date for commencement is now 1 September 2008.

D31. DPS have consulted all key stakeholders. This consultation included a presentation to the Staff Support Association (Samurai) and the Federation have been invited to provide a representative to join the DPS project team to ensure openness and cooperation in making these new procedures work.

D32. The Taylor reforms provide a real opportunity for an officer receiving information about poor performance to step back and make a considered decision. That officer is encouraged to undertake an initial severity assessment to establish the facts. It is only when this is done that the officer can consider if this is misconduct and also at what level.

D33. The DPS Project Team continue to engage with other MPS change programmes, particularly Transforming HR where joint awareness training is being conducted for first line supervisors and managers. In addition, DPS work with the Leadership Academy to deliver training in the new procedures for our staff.

Formation of MetLaw reception desk

D34. On 6 February 2007, Management Board decided that all legal work for the MPS, including work previously carried out by Accident Claims Branch, would be handled by, or through the Directorate of Legal Services (DLS). The MPA gave approval to this on 1 March 2007. The objective is to streamline and improve corporate governance and provide cost effective legal work while at the same time maintaining and/or improving the quality of work done.

D35. The new system, MetLaw, was launched on 2 May 2008 and is a simple and easy to use initiative to provide direct access to the best and most cost effective Legal Services either internally from the Directorate of Legal Services or from nominated and approved external firms of solicitors. The aim is to ensure quality legal services at the best possible price thereby reducing expenditure.

D36. MetLaw will provide the following services:

• Legal advice arising from MPS Operational or Corporate issues
• Transactional work for the MPS/MPA (e.g. Conveyancing, Commercial Contract etc.)
• Duty Lawyer Advice calls
• Compensation claims including malfeasance and Accident Claims related work
• Other civil legal proceedings e.g. judicial review, property ownership disputes, disclosure of documents in family law proceedings, Employment Tribunals and Employment Advices on behalf of the MPS.

POCA forfeitures and various Safer Neighbourhoods orders e.g. Sexual Offences Prevention Orders, Football Banning Orders, Anti Social Behaviour Orders, Closure Orders as well as advising in respect of Inquests, Licensing, Gaming, Betting and Lotteries, Firearms (Operational/Licensing), Public Order, RIPA and Terrorism.

D37. Some individuals in the MPS have been authorised to order legal work direct with approved legal suppliers. These individuals will be contacted by the MetLaw team to arrange training and to allow them access to the "MetLaw Direct" purchase order facility. MetLaw Direct will launch on 1 June 2008.

Annual Assurance Statement

D38. The MPS is in the process of compiling its Annual Assurance Statement. Templates have been completed by the relevant leads and have been subject to an internal verification process. The Commissioner has approved the Statement. The MPA officers have been involved in the development of the Statement.

C. Race and equality impact

The model of corporate governance set out in this report is based on the principles of openness; integrity; accountability and equality. The development of the framework therefore should have a positive race and diversity impact by ensuring that these principles inform the way in which the MPS operates. Furthermore, improved communication of the corporate governance framework aims to help staff understand how to apply these principles in their day-to-day work.

D. Financial implications

The work streams identified will be delivered within approved budgets.

E. Background papers

• Metropolitan Police Service (MPS) – Annual Assurance Statement
• MPS Corporate Governance Framework Update to Corporate Governance Committee, 14 March 2008
• Developing Resource Management paper to Management Board, 7 May 2008

F. Contact details

Report author:  Lucy Dunn, Resources Directorate, MPS.

For information contact:

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

Send an e-mail linking to this page

Feedback