Minutes

Minutes of the meeting of the Corporate Governance Committee of the Metropolitan Police Authority held on 12 June 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)

Co-opted members

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

MPA officers

• Jane Harwood (Assistant Chief Executive) (for items 1 to 6)
• Ken Hunt (Treasurer)
• Peter Tickner (Director, Internal Audit)
• John Crompton (Committee Officer)

MPS officers

• Dani Fitzgerald (Inspection Liaison Analysis Unit)
• Nick Kettle (Head of Safety and Health Risk Management Team)
• Anne McMeel (Director of Resources)
• Rachel Musson (Lead Accountant)
• Richard Riley (Acting Director Strategy and Improvement)
• Eleanor Ryan (Strategic Director HR)
• David Willis (Divisional Director Estates Management, Property Services)

Also in attendance

• Les Kidner (District Auditor, Audit Commission) (to agenda item 5)
• Martin Searle (Audit Manager, Audit Commission)

1. Apologies for absence

(Agenda item 1)

Apologies were received from Reshard Auladin and Kit Malthouse.

2. Declarations of interests

(Agenda item 2)

No declarations of interests were received.

3. Minutes of the Corporate Governance Committee – 14 March 2008

(Agenda item 3)

The minutes of the previous meeting were considered.

Resolved – That the minutes of the Corporate Governance Committee held on 14 March 2008 be signed and agreed as a correct record.

4. External Audit Plan 2008-09

(Agenda item 4)

The Committee received the final external audit plan for 2008-09 as submitted by the Audit Commission. The District Auditor said he would be pleased to make a presentation at a future meeting on the PURE methodology.

Resolved - That

1. the Audit Plan for 2008-09 be received; and
2. the 2008-09 audit fees be approved.

5. Internal Audit Annual Report 2007-08

(Agenda item 5)

The draft report summarised the work of Internal Audit for the year 2007/8, gave the opinion of the Director of Internal Audit on the adequacy and effectiveness of control within the MPS. The report also commented upon the effectiveness of MPA Internal Audit to meet the requirements of the Accounts and Audit Regulations 2003 (as amended 2006).

In introducing the report, the Director of Internal Audit emphasised that the version of the annual report before the Committee was a draft and following any comments from the Committee and the MPS it would be finalised and issued to all members of the Authority.

Rachel Whittaker asked about the arrangements for consulting MPA officers over the timing of Internal Audit investigations and felt that there could have been a better co-ordination in the timing of the Internal Audit report on Secondments and Abstractions and the MPA scrutiny of succession and talent management. The Assistant Chief Executive said such discussions would be held by the Business Management Team and she could confirm that decisions were shortly due to be made to sharpen the remit of this group and ensure more joined-up working within the Authority.

The Chair referred to the CIPFA guidance concerning the characteristics of the body which undertook the scrutiny role to ensure its effectiveness, e.g. some form of team building. The Chair said that a review of the MPA’s committee structure would shortly be taking place and felt that the point about ensuring the effectiveness of the scrutiny body should be borne in mind by the Committee or its successor body.

Following discussion the Committee agreed to amend the wording of the overall opinion (page 44) to read “In my opinion, taking into account all available evidence despite improvements the adequacy and effectiveness of the control environment in the Metropolitan Police Service still falls below an acceptable standard”

Resolved – That

1. Subject to the foregoing comments the draft Annual Report of the Director of Internal Audit was approved for circulation to all members of the Authority; and
2. it be confirmed that MPA Internal Audit provided an effective audit service to the Authority in 2007.

6. MPA accounts for the year ended 31 March 2008

(Agenda item 6)

This report presented the Authority’s draft set of accounts for 2007-08, which is subject to audit. The report identifies key features of the accounts and explains the structure of the statements. The accounts will be forwarded to the next full Authority meeting with any comments from this committee.

In introducing the report, the Treasurer said he wished to place on the record his appreciation of the hard work carried out by the Director of Resources and her staff and his own colleagues within the MPA to produce the accounts within the revised statutory time frame.

The Treasurer reported on some very recent detailed changes to Police Pension Regulations announced on 30 May. Consideration was being given to how this should be treated in the accounts and any proposed changes would be reported to the full Authority. In addition, it was noted that the Finance Committee still had to review the revenue budget out-turn and in particular consider the transfer of the financial underspend to balance sheet reserves. Decisions would be reported to the full Authority.

Members drew attention to a number of instances in the accounts where it would be helpful if an explanatory note were provided to explain, for example, the factors behind a very large change in a particular number year on year. The Chair felt that an explanation should also be prepared to explain the background to the apparent funding gap shown in note 3 in respect of national police services.

Resolved – That subject to amendment the draft statement of accounts 2007-08 be submitted to the full Authority at its meeting on 26 June 2008. .

7. Annual Governance Statement 2007-08

(Agenda item 7)

A report was received setting out an Annual Governance Statement, which the Authority was required to include in its financial statements. The Annual Governance Statement included details of governance arrangements, highlighting how effectively they were being deployed and identifying significant governance issues and actions being taken to address them. In producing the Annual Governance Statement reliance was placed on the Annual Assurance Statement produced by the MPS.

(A revised version of the report was circulated to the Committee after the agenda despatch)

Resolved – That

1. the Authority’s Annual Governance Statement be agreed for inclusion in the statement of accounts for 2007/08; and
2. the Metropolitan Police Service’s Annual Assurance Statement be noted.

8. MPS Corporate Governance Framework update

(Agenda item 8)

This report provided a progress report on the MPS’s corporate governance work programme. It includes an update on the work programme previously reported to the Committee and identified additional projects added to the programme following the Annual Assurance Statement Review.

A member questioned whether the 60 indicators were in all cases necessarily the most appropriate ones that could have been chosen. The Director of Resources said that the indicators had been carefully selected and confirmed that they could be amended in the light of experience in subsequent iterations of the framework.

Resolved – That the report be noted.

9. Internal Audit review of corporate risk assessment and management

(Agenda item 9)

The outcome of the Internal Audit review of Corporate Risk Assessment and Management was attached at Appendix 1. Internal Audit concluded that although a framework was in place for the assessment and management of risk, it was not effective in supporting the integration and embedding of risk management across the MPS. Areas for improvement to the existing arrangements and approach had been identified and recommendations made. The report also recognised the steps the MPS had taken to address a number of issues since the review was conducted. The Director of Internal Audit advised that colour copies of the report would be made available to members.

Linda Duncan, co-opted member, said she had been consulted at the drafting stage of the report and was satisfied with the final version.

Resolved – That

1. the content of the internal audit report and action plan be noted; and .
2. an updated Risk Management Strategy from the Treasurer and Commissioner be requested for approval.

10. 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.

The Acting Director, Strategy and Improvement said he wished to place on record his thanks to Nick Chown, the former Director of Risk Management, who had left the MPS at the end of May, for his work for the Service. The Chair said he would write to Mr Chown to thank him for the advice and assistance given to the Committee.

Resolved – That

1. progress to the end of April 2008 on business risk management and insurance management be noted;
2. progress on the measurement of MPS risk management be noted; and
3. it be noted that Business Risk Management Team had received the Strategic Risk European Risk Management Team of the Year award for 2008.

11. Corporate charge card

(Agenda item 11)

This report provided details of the work completed in relation to the corporate charge card investigation, 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 Resources undertook to supply Rachel Whittaker with a copy of the revised set of guidance notes referred to in paragraph 24.

Resolved – That

1. the actions that had 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. the progress in putting new management processes in place to avoid a recurrence of the issues identified be noted.

12. Update on MPS health and safety performance

(Agenda item 12)

A report was submitted which provided a summary analysis of MetAIR (Metropolitan Police Accident and Incident Reporting System) accident data comparing two reference periods April 2006 - March 2007 and April 2007 - March 2008 (as at 14 May 2008), and commenting on other aspects of Health and Safety.

Members commented that it might be useful if the Committee was provided with details of events like fires, such as the recent one at the Peel Centre shop. In reply, the Head of the Safety and Health Risk Management Team said that whilst fire did not strictly fall within his remit he took the point and would consider how such events could be reported to members.

Resolved – That the report be noted.

13. Corporate Governance Committee work programme and equality objective

(Agenda item 13)

This report outlined a workplan by which the Committee would fulfil its role as agreed in its terms of reference, suggested an amendment to its terms of reference and an equality objective for the committee.

Resolved –That

1. the Corporate Governance Committee work programme be agreed;
2. the amendment to the terms of reference be agreed; and
3. the equality objective for the Committee be confirmed as first agreed at the meeting on 7 December 2007.

14. 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 to the Local Government Act 1972 (as amended) was likely to be made known.

Send an e-mail linking to this page

Feedback