MPS corporate governance framework update

Report: 10
Date: 22 March 2010
By: Director of Resources on behalf of the Commissioner

Summary

This report provides a progress update on the Metropolitan Police Service (MPS) Corporate Governance Framework.

A. Recommendation

That members note the progress being made across a number of areas of corporate governance.

B. Supporting information

Current corporate governance arrangements

1. The MPS continues its drive to achieve excellence in corporate governance. It uses an established ‘temple’ model of corporate governance, approved by Management Board (see Appendix 1) that reflects current good practice.

2. The MPS corporate governance work programme consists of a number of work streams that have been identified through a gap analysis against elements of the CIPFA/SOLACE framework: “Delivering Good Governance in Local Government” the Interim Guidance Note for Police Authorities & Forces in England and Wales (2007) and significant governance issues included the MPS Annual Assurance Statement. A full list of work streams and the responsible leads is included in Appendix 2. This work programme is managed and monitored through the MPS Governance Board with regular progress updates to this Committee.

3. We are currently in the process of reviewing the MPS corporate governance framework, in liaison with MPA officers, to ensure the corporate governance arrangements of both organisations are appropriate and that the MPS and MPA are working together effectively to achieve this.

4. This report is presented in an amended format to previous reports and has incorporated some of the recommendations made in the “MPA Corporate Governance Committee Review of Effectiveness Report” by the Chief Executive which was presented at December’s Corporate Governance Committee.

Progress update

Summary of progress

5. For each work stream, a progress update for quarter 3 is detailed below.

Pillar One: Organisational structures & processes

6. Embedding risk management

• The format of the risk management implementation plan has been amended to align with the risk maturity model. This will allow corporate progress against the maturity model to be more effectively monitored.
• The MPS Business Group Risk Co-ordinators’ Forum has been re-established with initial discussions taking place on minimum standards for a risk management framework.
• A formal process has been established for quarterly corporate risk register updates.
• Risk input to 2010/2011 business group business plans is now finalised.

7. Implementation of Developing Resource Management Programme

While DRM1 work streams have now moved into business as usual, a small number of deliverables remain outstanding. These continue to be monitored on a regular basis and are reported to the DRM Steering Group. Development of the DRM2 work streams is progressing.

8. Corporate Landlord (CL) - now named Corporate Real Estate (CRE)

• A paper was discussed at Governance Board (February) setting out the principles of the Corporate Real Estate approach. Work is underway to progress the main strands within the CRE approach (office accommodation, training facilities and storage). The approach being taken on this project has also been shared with the MPA Estates Panel and Resources and Productivity Sub-Committee.
• Property Services Department (PSD) used the MPS Service Conference to access a large number of senior stakeholders to initiate debate on CRE and the principles underpinning it.
• PSD have also visited LB Camden as a 'Corporate Landlord' best practice organisation, the results of which have been considered in developing the CRE key principles.

9. Development of SAP

• The business case for development of SAP was approved by Management Board in December. Work is progressing at pace to deliver specific functionality to the system, including a fixed asset patch and asset tracking. A specification is close to completion to engage external support to undertake a capability study on the MPA/MPS use of SAP.

10. DRM2 Procurement Services

• A tender is due to be released to engage external support to deliver further improvements in key areas of contract, purchase compliance and Strategic Procurement Plans. This work builds on significant achievements in DRM1.

11. Finance and Resources Modernisation (second wave)

• An options paper for a second review of the F&R function will be submitted to the DRM Steering Group in March 2010 and will be considered at Governance Board in April 2010.

12. Partnerships

• The Partnerships project (formerly part of the DRM programme) was closed in November 2009 and is now business as usual. A number of activities are taking place to enhance partnership working and embed the Partnerships strategy across the MPS.
• The first Partnership Central Steering Group (PCSG) meeting has taken place with good attendance and engagement from across the MPS and MPA.
• Additional resource has been identified within the MPS to support delivery of the Partnerships strategy.

13. Provision of detailed information on emerging market hotspots, especially around specialism and specialist professionals

• A number of IT roles were identified where the MPS salary offering salary was behind the market. Five of these roles were advertised internally and externally in January 2010 using new pay arrangements designed to provide market-competitive salary packages. Response and success rates will be monitored to assess the success of the revised offering.
• Discussions in the Terms and Conditions Forum are near to conclusion on the adoption of greater flexibility in determining starting salaries within existing pay structures for a number of posts (within DoI) where market pressures have been identified.

14. Review of expenses policy

• The draft policy statement, policy workbook and Equality Impact Assessment are currently being reviewed by the Diversity and Citizen Focus Directorate (DCFD). Implementation of the new policy is due to start early 2010.

15. Management Board operating framework & scheme of delegation

• The terms of reference and membership of the three corporate boards were agreed by Management Board in December 2009.
• Interviews have been scheduled across the MPS to establish clear delegated authority arrangements to Management Board members. This will ensure that clear guidance is available to Management Board members to make certain all decisions comply with relevant statutory and regulatory requirements.

16. Performance against business groups business plans

• The new draft format for a Quarterly Management Report (QMR), based on Period 6 information, was presented to Management Board in December 2009. The improved format and detail provided was well received and some further enhancements have been made and Period 9 figures presented for comments and further review at February 2010 Management Board. The new quarterly monitoring report covering performance and resources will go live in 2010/11.
• OPM codes continue to be reviewed and data cleansed to support the development of the QMR and benchmarking exercises.

17. Organisational learning

• The selection process for the role of ‘Head of Organisational Learning’ has commenced and it is anticipated that this will have concluded by the end of February 2010.

18. Non-compliance framework

• Workshops have been held with Resource Managers to implement the non compliance framework; as a result work is underway to create a new Standard Operating Procedure (SOP) and make improvements to asset registers.
• Work is progressing to review and rewrite SOPs to support the non compliance framework.

19. Review of MPS Environment Strategy and development of Corporate Social Responsibility / Sustainable Development Strategy for 2010-13

• Work has been ongoing across the Corporate Social Responsibility (CSR) programmes, with most focus on development of the CSR Strategy. Milestones reached include preparation of a CSR issues Register, and continuing Stakeholder engagement to identify/clarify material issues.
• Over the last quarter the MPS has been working with the GLA group on the feasibility of procuring 1,000 electric vehicles within the group fleet. The MPS are seeking funding from Government before committing to the procurement of alternatively-fuelled vehicles under the framework and a decision will be made during quarter 4 of 2009/10.
• The review and development of a new CO2 target for the Policing Plan 2010/11 has been undertaken.
• MPA/MPS responses to draft Mayoral Strategies: London Plan, Water Strategy, Air Quality Strategy, Climate Change Mitigation & Energy Strategy, regarding sustainability implications, have been provided.
• An environmental / sustainability response to the PURE assessment has been prepared and submitted.
• The MPS is developing an environmental awareness campaign programme which aims to encourage a change in employee behaviours to reduce impacts on the environment.
• The MPS has recently signed up the Waste Resources Action Programme (WRAP) commitment to halving construction waste to landfill.

20. Service Improvement Plan (SIP)

• The SIP was a major focus at the MPS Service Conference held in November 2009. The conference covered the current and future financial situation and the steps we are taking corporately to find savings. Through a number of workshops, led by Management Board members, practical solutions were identified and discussed. The output of these workshops has helped further shape the scope and savings opportunities of a number of SIP projects.
• A report was submitted to February Governance Board, highlighting the current position on the SIP projects and how these contribute towards closing the current budget gap for 2011/12 and 2012/13.

21. Business charge card

• full update for this work stream is included in the “Business Card (Barclaycard) Update” to Corporate Governance Committee presented, for consideration, by the Director of Resources as a separate agenda item.

Pillar Two: Reporting to & involving the MPA & stakeholders

22. Review of all forms of public engagement and consultation

• The Community Engagement Strategy Board has been established and has met twice to date (all business groups and the MPA are represented on the Board).
• The group is in the process of scoping current work, stakeholder needs and looking to develop a new strategy over the coming months.

Safer Neighbourhoods panel training and business / youth engagement

23. Panel Training

• Since the pilot phase of the Community Engagement project, over 100 seminars have now been held.

24. Business Engagement

• 12 Boroughs are now providing 10 additional police patrols per day within their locally identified Primary Town Centres. Each BOCU is developing close links with businesses in the area in order to identify and tackle the most pressing issues.

25. Youth Engagement

• Over 31,000 11 to 18 year olds completed the youth survey across London. The top five concerns are; (1) when it is dark; (2) hooligans / gangs / yobs causing trouble in the area; (3) fear of being attacked, robbed or mugged; (4) other teenagers, kids, adults hanging around, and (5) crime in the area.
• Survey results have been fed back to local boroughs for problem solving, further analysis and development of policing plans to deal with the concerns locally.
• Starting in December there was a co-ordinated feedback campaign across London to inform local youths and people of the initial findings of the survey and what local police teams / boroughs will action to reduce the fear of concerns or deal with actual criminal activity that has been identified.

Pillar Three: Standards of behaviour

26. Enhanced MPA/MPS Fraud and Corruption Awareness Strategy

• The final report on Raising Fraud Awareness has been received from the Audit Commission and work is progressing to complete the action plan.
• The MPS Director of Resources and MPA Director of Audit Risk and Assurance have agreed to jointly fund further Fraud Awareness training.
• A meeting was held with the MPA Fraud Prevention Officer and MPS Finance Services to a review draft Special Notice and proposed Fraud Return to be completed by Business Groups. It has been proposed that the draft Special Notice should be replaced by the publication of Standard Operating Procedures and a supporting Intranet article. These are seen to be more suitable communication channels.

27. Introducing the Equality Standard

• The Equality Standards for the Police Service (ESPS) has been included in the launch of the Diversity and Equality Strategy in December.
• In order to support the delivery of the ESPS, the Diversity and Citizen Focus Directorate (DCFD) are working towards a remodelled business plan including the realignment of the DCFD into the Deputy Commissioner’s Command. This will ensure that DCFD and the ESPS are fully integrated into all MPS activity.

Environmental impact

28. The work streams identified have varying levels of environmental impact / benefits.

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 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. Legal implications

1. The MPA are under a statutory duty to prepare and publish an Annual Governance Statement (AGS), under regulation 4 (2) of the Accounts & Audit Regulations 2003, as amended by the Accounts & Audit (Amendment) (England) Regulations 2006. The AGS is a general certification about governance issues, which is the primary responsibility of the MPA as police authority.

2. In order that the MPA can discharge its statutory duty referred to in paragraph 1 above, the MPS provides its certification to the MPA by submitting an Annual Assurance Statement (AAS), as recommended by CIPFA / SOLACE guidance “Delivering Good Governance in Local Government-Interim Guidance Note for Police Authorities and Forces in England and Wales (2007”) (“The Guidance”), which demonstrates how aspects of governance have been implemented within the police force.

3. The Corporate Governance Framework provides the supporting information which evidences that the MPS will ensure it has robust systems in place that demonstrate it is adhering to the strategic direction set by the MPA, and is delivering good governance through the delivery of many operational and financial aspects within a delegated framework, in accordance with Guidance and best practice.

4. Compliance with the Corporate Framework will also assist in raising standards, reduce risk of legal challenge and build public confidence by ensuring the MPS operates in a transparent manner.

Background papers

None

F. Contact details

Report author: Sian Hartley, MPS

For information contact:

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

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