Minutes

Minutes of the meeting of the Corporate Governance Committee of the Metropolitan Police Authority held on 8 December 2008 at 10 Dean Farrar Street, Westminster, London SW1H 0NY.

Present

Members

• Toby Harris (Chair)
• Valerie Brasse
• Joanne McCartney

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

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

MPS officers

• Dani Fitzgerald (Inspection Liaison Analysis Unit), Simon Hart (A/Director, Finance), Alan Hughes (Director, Business Performance), Nick Kettle (Head of Safety and Health Risk Management Team), Anne McMeel (Director of Resources), Richard Morris (Cdr, Strategy and Improvement), Ellie Ryan (Strategic Director, HR) and David Willis (Divisional Director Estates Management, Property Services)

Also in attendance

• Tom Edgell (Audit Manager, Audit Commission)
• Les Kidner (District Auditor, Audit Commission)
• Martin Searle (Audit Manager, Audit Commission)

34. Apologies for absence

(Agenda item 1)

Apologies were received from Neil Johnson and Caroline Pidgeon (members).

35. Declarations of interests

(Agenda item 2)

No declarations of interests were received.

36. Minutes of the Corporate Governance Committee (part 1) – 11 September 2008

(Agenda item 3)

The minutes (part 1) of the previous meeting were considered.

Resolved – That the minutes of the Corporate Governance Committee (part 1) held on 11 September 2008 be signed and agreed as a correct record.

37. HEALTH AND SAFETY PERFORMANCE REPORT

(Agenda item 4)

The Head of Safety and Health Risk Management Team Members introduced a report providing a comparison of injuries reported on the Metropolitan Police Accident and Incident Reporting System (MetAIR) between November 2006 - October 2007 and November 2007 - October 2008. The MPA’s HR Policy Officer stated that he had circulated a note to members summarising the APA response to the draft Health and Safety Executive’s high level statement for the Police and Fire Rescue Services ‘Striking the Balance between Operational and H&S Duties’.

The Chair noted the increase in training related accidents, and the shortcomings of MetAIR in recording these incidents. Following concerns raised at a previous MPA Corporate Governance Committee meetings on this subject, the issue had been discussed by the MPS Strategic Health and Safety Committee, and it was proposed that a sub-working group be set up to examine this issue and that the MPS Safety and Health Risk Management Team (SHRMT) would seek funding to sponsor a review of training accidents recorded on MetAIR, although this was unlikely to commence before the next financial year. The Chair stated that he was reluctant to wait for these and requested a report from the Director of Training at the next Committee. In the meantime, it was suggested that all such accidents were flagged on MetAIR and the free text field be used to provided full information.

The report noted that a few months ago the SHRMT, in conjunction with the Federation, PCS Union and Officer Safety Unit, had asked the MPS Strategic Research Unit to undertake a survey of police officers and PCSOs who had been assaulted in the previous 18 months. The draft report indicated a number of areas of interest which would be looked at in more detail. The Chair requested to see the full final report at the Committee.

Resolved - That

1. members note the report; and
2. that the next meeting of the Committee receive:
   1. report from the Director of Training on injuries during training; and
   2. the full report resulting from the survey of assaulted police officers and PCSOs.

38. External audit annual audit letter 2007/08

(Agenda item 5)

The Treasurer introduced a report containing as an appendix the Audit Commission’s annual audit letter for 2007/08. The District Auditor stated that the Audit Commission’s opinion was unqualified, but there still remained work to do, particularly around data. The Chair stated that this was the most positive audit letter received by the Authority and demonstrated successive improvement. The Director of Resources stated the audit letter reflected the position as of March and that since then the MPS had embedded procedures and continued with its programme of restructuring.

Resolved – That the audit letter be considered before it was reported to the full Authority.

39. Internal Audit progress report

(Agenda item 6)

A report was received summarising the work of Internal Audit for the period April to December 2008, the results of significant Internal Audit work to date and the adequacy and effectiveness of control in MPS systems where Internal Audit has issued final reports since April 2008.

The Chair and members asked about timescales around the fraud prevention and fraud awareness work. The Director of Internal Audit stated that it was moving forward, but slower than he would have liked. He undertook to provide more information in his next progress report to the Committee. Questions were asked by members in relation to the number of calls to the ‘Right Line’ and BOCU inspections. A member noted that in the past analysis had been received on the implementation of audit recommendations and it was suggested that data be a standing item in the update report together with a section on emerging themes. This was agreed.

Resolved – That

1. the progress made in achieving the 2008/09 Internal Audit Plan was noted; and the proposed postponement of two audits in the programme be agreed,
2. the current Internal Audit evaluation of the adequacy and effectiveness of internal control in the MPS be noted; and
3. the next Internal Audit Progress report contain timescales around fraud prevention and fraud awareness work; and future reports contain analysis on the implementation of audit recommendations and a section on emerging themes.

40. MPA internal audit plan for April 2009 to 31 March 2010

(Agenda item 7)

A report and associated appendices were received setting out the proposed plan for the use of Internal Audit resources from April 2009 to March 2010. The annual plan was based on an updated Audit Needs Assessment and Risk Analysis for the next five years and the MPA Internal Audit Strategy approved by Corporate Governance Committee in March 2008. The report noted that the Director of Resources for the MPS, MPA Treasurer and the MPA Chief Executive were content with the proposed annual plan.

The Chair noted that he understood ‘quadrant’ had ceased. It was agreed this would be discussed outside the meeting. Members asked if borough audits were risk assessed, the Director of Internal Audit stated that auditors looked at eight out of 11 processes, concentrating on weaknesses. All high risks identified were monitored on a database, this Committee receiving regular reports on high risks. The Director of Resources outlined the processes in place to make Internal Audit’s work easier.

Resolved – That

1. the proposed use of Internal Audit resources be approved and the summary calculation of audit need and comparison to planned work set out in Appendices 1 and 2 be noted; and
2. the programme of Internal Audit work, set out in Appendices 3 to 6 be approved.

41. Update on Audit Commission and HMIC use of resources assessments and MPS response

(Agenda item 8)

The Committee received a report summarising the key issues raised by the Audit Commission and HMIC in recent reports. This followed inspection activity which looked at how the MPA / MPS planned and made use of resources. The report also set out the MPA/MPS response to the issues raised, in the form of an action plan.

The Chair asked how the MPA’s score compared with that of other police authorities. The Director of Resources said the MPS was in the bottom 20%, but should be hopefully moving up the league table. The District Auditor stated that the national report had not yet been published, adding that the Audit Commission raised the bar every year.

Resolved – That the action being taken in response to the Police Use of Resources Evaluation and the Strategic Resource Leverage Inspection be noted.

42. Implementing international financial reporting standards

(Agenda item 9)

In March 2007, the Government announced in the Budget Report the intention that all government and other public bodies should in future publish their annual financial statements in line with International Financial Reporting Standards. The new reporting standards would be implemented by central government bodies in 2009/10 and other public bodies, including police authorities in 2010/11. The report stated that the MPS saw early planning as key in successfully making the transition to the new arrangements, and informed members of progress made since the last update in September 2008.

Members noted the major financial impact the new arrangements would have on the accounting of leases. The Treasurer stated that he was awaiting Chartered Institute of Public Finance and Accountancy (CIPFA) guidance on this issue, and would report back to the Committee in due course.

Resolved – That the report and the appended project plan be noted.

43. MPS corporate governance framework update

(Agenda item 10)

The committee received a progress report on the MPS corporate governance work programme. It includes updates on the areas identified by the MPS Annual Assurance Statement that enhanced the MPS’ governance arrangements, on the work programme itself and incorporated the Corporate Risk Management update.

The Director of Internal Audit noted that the revised Gifts and Corporate Hospitality Policy and Standard Operating Policy had already been considered by the MPA’s Remuneration Sub Committee following changes requested by the MPS.

Resolved – That report be noted.

44. MPA / MPS corporate risk management strategic statement

(Agenda item 11)

A report was received outlining a proposed joint MPA/MPS Risk Management Statement, together with associated risk management strategies for both MPA and MPS.

The Chair felt it should be made more explicit that the MPA should have oversight of the MPS’s risks The Chief Executive stated that she used to attend the MPS’s Risk Management Committee, but was concerned that the MPA was no longer included in this and other MPS decision making processes. She had written to the Acting Commissioner and was due to meet him to discuss the issue further before Christmas. The Director of Resources stated that MPA oversight was implicit in the proposals; however the Chair felt the detail should be fleshed out, and asked to receive a further report at the next Committee.

Resolved – That a further report be received at the next meeting of the Corporate Governance Committee.

45. Annual governance statement – quarterly update

(Agenda item 12)

Members received a report updating them on progress in addressing the significant governance issues included in the statement of accounts for 2007/08. Members noted that the report stated ‘Governance arrangements for partnership working need to be reviewed and strengthened to recognise their increasing importance’ and asked what had been missing. The Director of Resources stated that there was a long list of ad hoc partnerships and one of the strands of resource management was to define partners and provide officers and staff with better toolkits to deal with them; for instance, by advising BOCU Commanders on how to negotiate SLAs or getting the correct approvals in allowing partners to use MPA/MPS assets.

Resolved – That the progress in addressing the significant governance issues included in the 2007/08 Annual Governance Statement for the MPA be noted.

46. Business card update

(Agenda item 13)

This report provided details of the work completed in relation to the business card investigation, first reported to full Authority in November 2007 and to Corporate Governance Committee on March, June and September 2008. It also detailed progress on the implementation of the new management process for the governance of the MPS business card. The Director of Resources stated that the MPS Management Board was continuing to monitor all new cards unreconciled within 30 days and consideration was now actively being given to suspending the use of 30 cards. All possessors of such cards now signed agreements that unreconciled amounts would be deducted from wages.

The Chair stated that he wished to see no further such reports, but he would expect to see an exempt report on progress made by the Directorate of Professional Standards on its investigations into card misuse. He added that he expected the MPS to continue to monitor the use of the new corporate card. However members requested a further report on how the new card was working, and one further such report was agreed.

Resolved – That

1. the actions that have been completed in processing outstanding Business Card reconciliations be noted;
2. the progress with ongoing investigations being undertaken by the Directorate of Professional Standards and MPA Internal Audit be noted;
3. the progress on the implementation of the new management processes put in place to avoid a recurrence of the issues identified be noted;
4. an exempt report be received from Directorate of Professional Standards on its investigations into card misuse; and
5. one further report be received on use of the new business card.

47. MPA urgency procedure

(Agenda item 14)

The full Authority asked the Corporate Governance Committee to review the appropriateness of the MPA’s urgency procedure. Members received a report providing information to enable the committee to do so.

Members made the following comments:

• how did the Chief Executive know there was genuine urgency?
• what powers did the Chief Executive have?
• when the report recording agreed urgent actions went to full Authority, it should state reason for urgency
• the Strategic and Operational Policing Committee had an urgency function, when was that exercised and was it adequately defined?
• did other committees have urgency powers?
• Standing Orders referred to sub committees in para 6.1.7 but not para 6.1.5;
• all members should be given the opportunity to feed into the decision making process;
• why were not emergency meetings called to deal with a matters of urgency?
• the first question on the urgency form could be ‘Is an urgent meeting appropriate?’
• an audit trail as to why an urgent decision was required;
• members should be informed of urgent decision immediately, especially if there was press interest;
• 14 such decisions had been made this year; they should be reviewed to find out why they were urgent.

Chief Executive said she did not want to make urgent decisions, the ones she received usually involved decisions about procurement, contracts or individuals, adding that members were informed of such decisions and urgent meetings could be called if necessary. The Chair asked the Chief Executive to bring a further report to next meeting of the Committee.

Resolved – That

1. the current urgency procedure be considered and changes that would improve the transparency and accountability of the process be identified; and
2. a further report be submitted to the Committee in March

48. Exclusion of press and public

(Agenda item 15)

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.

49. Business card update appendix

(Agenda item 16)

The exempt appendix to the linked agenda item was considered.

50. High-risk audit recommendations

(Agenda item 17)

A report was received confirming the status of outstanding high risk Internal Audit recommendations as at November 2008, and providing details of ongoing work to enhance the process by which the MPS responds to audit recommendations.

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

51. Metropolitan Police sports clubs

(Agenda item 18)

A report was received recording the current legal status of the four sports clubs and the associated statutory responsibilities arising from the clubs’ use and occupation of MPA sports grounds at Bushey, Chigwell, Hayes and Imber Court. In April 2008, the MPA’s Finance Committee approved the negotiation of formal leases with each of the four sports clubs. In September the clubs at Bushey, Chigwell and Hayes had completed the process to transform themselves into ‘Companies Limited by Guarantee’ able to be legally accountable for the management all lease and contractual terms. However in June 2008, Imber Court Sports Club had withdrawn from discussions to formalise a lease with the MPA. The Divisional Director Estates Management, Property Services, outlined the actions taking place to try and formalise the position in relation to Imber Court Sports Club.

Resolved – That

1. the current legal status of Bushey, Chigwell and Hayes sports clubs be noted; and
2. the position of Imber Court sports club and the ongoing discussions aimed at bringing forward a proposal to formalise the relationship with the MPA and to clarify statutory responsibilities be noted.

52. Minutes of the Corporate Governance Committee (part 2) – 11 September 2008

(Agenda item 19)

The minutes (part 2) of the previous meeting were considered.

Resolved – That the minutes of the Corporate Governance Committee (part 2) held on 11 September 2008 be signed and agreed as a correct record.

The meeting ended at 12.30 pm

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