Minutes

These minutes are agreed.

Minutes of the meeting of the Corporate Governance Committee of the Metropolitan Police Authority held on 10 December 2009 at 10 Dean Farrar Street, Westminster, London SW1H 0NY.

Present

Members

• Toby Harris (Chair)
• Valerie Brasse
• Neil Johnson
• Joanne McCartney
• Caroline Pidgeon

Co-opted members: Linda Duncan (Head of Governance Services, Hyman Capital Services Limited) and Richard Stephenson (Director, Group Health, Safety and Environment, Transport for London)

MPA officers

• Annabel Adams (Deputy Treasurer)
• Catherine Crawford (Chief Executive)
• Julie Norgrove (Director, Audit Risk and Assurance)
• Irene Lloyd (Support officer - DARA)

MPS officers

• Peter Brown (Assistant Director, Compliance/Inspection Property Services)
• Tony Evans (MPS)
• Alan Hughs (Director of Business Performance)
• Debbie Gilbert (Head of Occupational Health)
• Peter Greig (Director of Core Finance and Special Projects)
• Nick Kettle (Head of Safety and Health, Risk Management Team)
• Anne McMeel (Director of Resources)
• Michael Orchard (DCI, DPS)
• George McAnuff (Assistant Director HR Services)
• David Willis (Divisional Director Estates Management, Property Services)

Also in attendance: Les Kidner (District Auditor, Audit Commission) and Martin Searle (Audit Manager, Audit Commission).

22. Apologies for absence

(Agenda item 1)

An apology was received from John Biggs.

23. Declarations of interests

(Agenda item 2)

No declarations were received.

24. Minutes of the Corporate Governance Committee (Part 1)  – 14 September 2009

(Agenda item 3)

Resolved – That the minutes of the Corporate Governance Committee held on 14 September 2009 (Part 1) be signed and agreed as a correct record.

25. Corporate Governance Committee: Review of effectiveness

(Agenda item 4)

Linda Duncan (co-opted member) presented her review of the effectiveness of the Corporate Governance Committee. The review concludes that the committee is working within its Terms of Reference, in compliance with the CIPFA guidance and with appropriate membership. The review also takes account of emerging best practice in both the public and private sectors where there is movement towards monitoring emerging risks in the changing environment
A number of suggestions are made to assist in increasing the effectiveness of the Committee. Key areas are for members to have a more comprehensive view of the map of the inherent risks and where assurance work within the MPS is being carried out, and more concise briefings for members on emerging risks to the Authority and the MPS.

The Director of Resources reported that agreement has already been reached with the MPA Directorate of Audit, Risk and Assurance for a joint exercise to map the various internal inspection and assurance teams that exist within the MPS. Work is also under way to review the MPS decision making processes and the reporting systems of internal boards. The Chair welcomed this asking that upon completion a joint report be presented to this Committee outlining how best to identify exception issues.

Both the External Auditor and the Director of Audit, Risk and Assurance agreed that briefings for members on emerging risks would be useful and would be arranged when required.

Resolved – That the report be received and areas for further action agreed.

26. External Audit Annual letter 2008/09

(Agenda item 5)

The District Auditor introduced the Annual Audit Letter and action plan for members to consider before it is presented to full Authority. The letter has been discussed with officers of the MPA and MPS and members will be aware of much of the content as items have been raised at other committee meetings. There is an unqualified opinion on the accounts and a number of recommendations have been made. Members were informed that as a result of being informed of the matters appearing within the exempt part of this meeting (Agenda item 21), he will be re-writing the paragraph concerning arrangements for contracts, but that the overall opinion will not change. The MPA Chief Executive will have sight of the amended paragraph.

Answering a query about the robustness of the level of reserves, the District Auditor stated that there were no concerns as targets are being met and the reserves are being monitored. The level is a matter for the Authority.

Resolved – That the External Audit Annual Letter be received, subject to further changes and the recommendations be accepted.

27. Update on Audit Commission Police Use of Resources Evaluation

(Agenda item 6)

Members noted that although the score remained at 2 the process this year was more robust with many police authorities failing to maintain the high scores of last year. The process will begin again in January 2010 with the emphasis on outcomes rather than processes.

The Chair noted that a score of 2 means that we are adequate only, and felt that it would be useful to have some comparison with other police authorities. The Acting Treasurer to circulate the information to members.

Resolved – That the report be noted, progress reports on recommendations to continue to be reported to this committee and the additional information on other police authorities be circulated.

28. Directorate of Audit, Risk and Assurance progress report

(Agenda item 7)

The Director of Audit, Risk and Assurance presented the quarterly update which has changed in format in order to reflect the recommendations made in the Corporate Governance Committee Review (agenda item 4). The overall assurance score has improved, improvement being seen when Follow Up reviews are carried out. Further analysis on the implementation of recommendations is planned for future update reports. Significant work for the next quarter includes a review of the new corporate credit card system, security vetting and treasury management, also a follow up review of risk management. The Directorate are still on target to complete 90% of the audit plan. Members welcomed the new format.

During discussion the question was asked whether follow up audits are planned to take place after the dates set for the implementation of recommendations. The Director of Audit, Risk and Assurance informed members that follow up audits for high risk systems are carried out after 6 months, and for other systems after 12 months. In most cases the deadlines for implementation will have passed.

Resolved – That members note the report; and note both the work underway and the improvement in the adequacy of the control framework.

29. High Risk Audit recommendations

(Agenda item 8)

Members received a regular update report on the status of outstanding high-risk audit recommendations which indicated a continuing improvement. The Chair noted that the report shows considerable progress and expressed the view that it is appropriate for this to be discussed in the open part of the agenda.

Resolved – That the report be noted.

30. MPS Corporate Governance framework

(Agenda item 9)

This is a regular update report, the format of which will be revised for future committee meetings.

There was discussion on the use of the MPS corporate credit card by a protection officer that had recently been reported in the press. The MPS Director of Resources confirmed that this particular incident had been reviewed and was deemed to have been within policy. The chair informed members that he intended to examine protection procedures within the Specialist Operations area of the MPS, and will be happy to look in detail at the issues raised by this particular case.

Members were informed that Barclaycard usage is reviewed monthly and any unusual transactions and timeliness issues are referred to the departments concerned for clarification. Where necessary, incidents are also referred to Management Board. Three cases are under investigation, one member of staff has been dismissed over the use of the card. Members required more analysis of the overdue amounts, and it was agreed that the figure be presented by how long it had been overdue, e.g.30 days, 60 days, 90 days, etc, with information on those cases that have been queried by local management before being forwarded to Finance Dept.

Resolved – That

1. members receive the report, noting that the format is being reviewed; and
2. additional analysis of outstanding payments be presented at the next meeting

31. Annual Governance Statement – quarterly update

(Agenda item 10)

This report is the regular update on the annual governance statement.

Resolved – That the report be noted.

32. Directorate of Audit, Risk and Assurance 2010/11 Annual Plan - strategic approach

(Agenda item 11)

The Director of Audit, Risk and assessment presented the item stating that in previous years a detailed audit plan had been brought before the Committee in December, however, this paper gives the new strategic approach following the appointment of the new Director of Audit, Risk and Assurance with a further paper to be presented in March which will give details of the annual work programme. The approach is based on moving towards a more dynamic risk based audit programme enabling more resources to be dedicated to high risk, high cost areas. Greater emphasis will be placed on fraud prevention and advisory work. The plan will be reviewed each quarter to ensure it covers any emerging risks.

Resolved - that the report be agreed.

33. Health and Safety performance

(Agenda item 12)

Health and Safety performance information was presented along with detail on the progress of outstanding actions. Members were of the opinion that it would be useful to have performance information over five years in order to be able to examine any longer term trends. The MPS Head of Safety and Risk Management stated that information over seven years is being prepared and will be presented to this Committee once finalised, and then annually. This was agreed.

Resolved – That

1. the progress be noted;
2. a report be received in due course on the longer term H&S information and performance trends

34. Training accident study

(Agenda item 13)

The study by Frontline Consultants into training-related accidents is complete, the final report being validated prior to its release for consultation. The report and any actions and updates will be submitted to Corporate Governance Committee in March. The working group formed by the Safety and Health Risk Management Team has been working closely with CO11.

As the report focuses on absolute numbers, members stated that relative numbers would be useful, also some statistical analysis rather than just observational analysis. The MPS reported that their focus to date has been in abstracting the information. Presentation in the form requested may not be possible for all data. It was agreed, however, that multivariant analysis would be useful and there is an aspiration to build upon what is already available.

The Chair stated that the objective of asking for this report was to ensure that there is an appropriate balance between making training realistic and avoiding injuries being sustained during the training.

Resolved - That

1. The report be noted; and
2. Further contextural information be submitted to the next meeting.

35. External Independent Heath and Safety Audit

(Agenda item 14)

This audit is complete, the draft report being validated. The auditors have indicated that the final report will include a number of recommendations intended to provide a framework for the ongoing Health and Safety Strategy covering the next five years. There were no immediate issues to be addressed. The final report will be released to the relevant MPA officers as soon as it becomes available, for any items of validation or other issues they may wish to highlight.

Members noted that there had been a series of audits carried out by the MPA, but that the last external independent audit had been in 2001. It would, therefore, be useful to have a high level comparison of progress.

Resolved  that

1. members note the position
2. MPA Officers will have early sight of the report

The final report be presented to this committee when complete

Resolved – That members note the report.

36. Update on MPS/MPA Assurance Progress

(Agenda item 15)

This report contains the letters of Assurance from MPS DoR and CO, and sets out the proposed programme for the next phases of the rollout. The Chair noted that progress has been made and that the actions being implemented are engaging the staff actually delivering Health and Safety in the workplace.

Members asked that the letters of Assurance be in a more standardised format so that both progress and issues can be noted and comparisons made. The letters should still be meaningful.

Resolved – That the report be received and noted.

37. Implementing Financial reporting standards

(Agenda item 16)

This report gives the latest update. The MPA A/Treasurer reported that good progress is being made, the initial review has been started but cannot be finalised until the CIPFA guidance is issued (expected later this month). Training for members is being arranged.

Resolved – That the report be noted.

38. Treasury management control framework UPDATE ON MPA/MPS ASSURANCE PROGRESS

(Agenda item 17)

This report updated members on the latest position. All actions have either been implemented or are in hand. Treasury Management advisors are in place and the first action plan will be presented to Committee in February/March 2010.

Resolved – That the report be noted.

39. Business Charge Card update

(Agenda item 18)

MPS Professional Standards updated members on progress made in investigating the potential misuse of the MPS American Express charge cards. It is anticipated that the 40 cases still under review will be at disposal stage by the Spring of 2010. A process to recover monies through either the criminal or civil courts is being explored. The Chief Executive reported that there are no ACPO officers under investigation by the MPA Professional Standards cases sub committee

Resolved: that members note the position.

40. Impact Plus

(Agenda item 19)

The Chief Executive reported that the MPA Professional Standards sub Committee has concluded its consideration of this report. There are a number of general recommendations relating to procurement, joint working between the MPA/MPS to deal with those recommendations is in hand. A full report will be presented to Corporate Governance Committee in March.

Resolved – That the report be noted and a full report be submitted to the next meeting.

41. Exclusion of press and public

(Agenda item 20)

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.

Summary of items considered in part 2

42. Sports club update (Oral update)

(Agenda item 21)

Report noted. Quarterly updates to be provided.

43. High risk audit recommendations

(Agenda item 22)

Report noted. Briefing session for members on the risk management process to be held.

44. Business Charge Card update

(Agenda item 23)

Information noted.

45. Deaths in service

(Agenda item 24)

Report noted.

46. Imber Court update

(Agenda item 25)

Report noted and agreed that a report be submitted to the Finance and Resources Committee

47. Minutes of the Corporate Governance Committee (Part 2)  – 14 September 2009

(Agenda item 21)

The minutes of the Corporate Governance Committee held on 14 September 2009 (Part 2) were signed and agreed as a correct record. 

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