MPS Corporate governance framework update

Report: 8
Date: 13 September 2010
By: Director of Resources on behalf of the Commissioner

Summary

This report provides a progress update on work areas pertaining to the Metropolitan Police Service (MPS) corporate governance framework.

A. Recommendation

That

1. Members note the progress being made across a number of corporate governance work areas.

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 2009/10 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. This is the first quarterly report identifying improvement against the 2009/10 Annual Assurance Statement.

Summary of progress

4. For each work stream, a progress update for quarter 1 is detailed below.

Pillar One: Organisational structures & processes

5. Embedding risk management

A risk management implementation plan is in place to ensure that risk management activity continues to improve across the MPS against a defined maturity model. Progress in the last quarter includes:

• The quality of the information in the corporate risk register continues to improve and initial work has been carried out with risk leads to ensure that the corporate risk register is fully updated and refreshed by December 2010.
• A stakeholder mapping exercise has been carried out as the first stage in updating the risk management accountabilities framework and to enable future work ensuring risk management communications are targeted to the most effective audience.
• The Business Group Risk Co-ordinators’ Forum is now meeting regularly and proving to be a useful forum for improving risk management processes and sharing tools and techniques between business groups.

Work is ongoing to monitor the status of key business risks and controls through strategic governance arrangements and key change programmes, such as the Service Improvement Plan. MPS Governance Board and the MPA Corporate Governance Committee receive quarterly update reports on business risk.

6. Implementation of Developing Resource Management Programme

This quarter has seen significant progress on all work streams, and developments and improvements made to the programme management and oversight.

7. Corporate Real Estate

Following the application of stretch targets in the previous quarter, PSD presented proposals to the June Management Board away day, securing broad agreement to proceed. The project has moved into delivery, with governance arrangements developing to manage and oversee progress.

8. Procurement

Capgemini, providing external support to this work stream, have been onsite since May. In this quarter the PID and statements of work for each sub-work stream have been agreed (these are: Effective Purchase Order Management, Effective Contract Management, Strategic Procurement Plans, Enhancing Technology, and Capability Enhancement). Significant progress has been made against all sub-work streams. A Procurement change network is soon to convene. Principles to underpin a No Purchase Order No Pay policy are now being tested with business groups. Strategic procurement plans are being revalidated, with increased savings identified.

9. Source-to-Payment

Governance Board approved a new work stream in June 2010: Source-to-Payment, the first phase of the e-Procurement Transformation. The work stream will further automate our processes, improve compliance and governance in sourcing and contract management, allow further collaboration across the Police Forces, NPIA, and GLA as well as providing an improved service to the business. Enhanced systems will enable true, real-time collaboration with our suppliers and support enhanced efficiencies savings through SPPs and contract compliance.

10. SAP Development

• The Fixed Asset Patch, applied at the end of 2009/10, is fully functional.
• The Asset Tracking business case was agreed by Management Board July 2010. This followed an extensive period testing feasibility and applying due diligence.
• Capital Management functionality was due to be delivered in July 2010; however, implementation has been delayed to October 2010 to allow the project team to overcome widely varying processes and a range of systems across business groups. After significant effort to-be processes were agreed by the impacted groups (DoI, Transport Services and PSD).
• The Invoice Management project has developed significantly, with onsite support provided by Open Text, and the development of prototype systems and functional design documents
• External support to the SAP Capability Review, tendered in April 2010, has been awarded following a full evaluation and assessment process involving key stakeholders from Finance, Procurement and DoI. The project team, management and governance structures are in development.

11. Finance and Resources Modernisation 2

A business case to progress the integration of Finance and Resources support services across MPS was approved by Governance Board in June. A project overview group including stakeholders across business groups started meeting in July, with separate teams to take forward Finance and Resources functions in development. During July a review team within Finance Services assessed key finance processes to achieve rapid process improvements. An initial project plan and indicative governance arrangements have been developed.

12. Partnerships

The Partnership Programme Plan has been updated and signed off by the Partnership Central Steering Group (PCSG). The following milestones have been delivered in the last quarter:

• Assessment, conclusion and next steps re partnership procurement risk according to action plan.
• Assessment, conclusion and next steps re joint arrangements that are not entities (JANES) issue.
• Partnership Toolkit updated.
• Model developed for identifying significant partnerships in order to develop a risk-weighted approach.
• Further development of external landscape map.

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

• Of the seven ‘spot rate’ positions previously reported as being under recruitment 2 have now been filled, 3 are under offer and 2 further roles are currently on hold under review.
• The services of an analyst to analyse/evaluate market data relevant to this issue are currently being sought.

14. Review of expenses policy

• Revised expenses guidelines have now been published and are available via the HR intranet.
• Procedures that will establish value/volumes, policy effectiveness and compliance are under development.

15. Management Board operating framework & scheme of delegation

• A scheme of delegation matrix has been developed to provide clear accountability and visibility of how the delegations from the MPA to the Commissioner are discharged by the MPS;
• The scheme of delegation matrix supports the MPS scheme of delegation, which has been refreshed to reflect current strategy and terminology.
• A paper was put before Management Board in July describing improvements in MPS corporate governance arrangements, including the development of the scheme of delegation and an update on the corporate decision making model.

16. Organisational Learning (OL)

With full time staff now in place and a more informed picture of MPS learning processes, OL will now be the subject of a much more co-ordinated process. This will formalise the committed but sporadic efforts of existing OL work and provide for accountability from business groups.

• Analysis of OL practice has provided a clearer picture of the extent of (and limitations to) learning activity in the MPS. It has also highlighted the lack of a corporate approach and its generally inward looking focus.
• Business Group Leads and OL practitioners/processes have been scoped and identified.

The OL forum is pivotal and will cement a framework that will be both pragmatic and enduring. This drive will be underpinned by effective, far-reaching communication and demonstrative internal leadership. The inaugural ‘Learning’ forum is planned for mid September. It will have representation across the MPS and strategic partners. It will initially address:

• Appropriate performance management criteria for OL,
• A statement of expectations for staff at all levels,
• Continued consultation on the challenges of a corporate IT platform for sharing lessons,
• A corporate framework applicable to each business group (based on Meta-analysis principles) with staff at each level and all OCUs tasked with pro-actively seeking and disseminating learning,
• Internal and external communication strategy,
• Practical steps to foster the cultural shift towards learning as daily business.

17. Compliance Framework

• Further fraud awareness events have been planned for the next quarter as part of the joint MPA/MPS plan to implement recommendations made by the Audit Commission in their report (Raising Fraud Awareness), submitted to the MPA Corporate Governance Committee in June 2010.

18. Review of MPS Environment Strategy and development of Corporate Social Responsibility (CSR) / Sustainable Development Strategy for 2010-13

• The MPA/S Environment Report for 2009/10 is currently being drafted, encompassing a review of the 5 year Environmental Strategy, which came to a close at the end of March 2010.
• The Corporate Social Responsibility Strategy was approved by Management Board in July 2010 and will be presented at the MPA’s Communities Equalities and People Committee in September.
• Work is ongoing to ensure the CSR strategic objectives are considered and integrated into the business planning process, for the 2011/12 Draft Policing Plan.The Environmental Champions scheme has been launched as part of the Environmental Communications Strategy / Awareness Campaign.
• The MPS continues to act in an advisory capacity to the Building Energy Efficiency Programme Steering Group Board.

19. Business Charge Card

Barclaycards were introduced as the new business charge card in May 2008, with tighter criteria for the cardholder to account for their expenditure (within 30 days). See Appendix 3 for the value of items of Barclaycard expenditure as at 16 July 2010 and a full update on the current progress and controls in place to manage this process.

Pillar Two: Reporting to & involving the MPA & stakeholders

20. Review of all forms of public engagement and consultation

The draft Commitment has been revised following consideration by Management Board and the MPA Communities, Equalities and People Committee. The revised Commitment was approved at the MPA Full Authority on 22 July 2010 and subsequently overseen by the MPS Confidence and Satisfaction Board. Work to develop the MPS action plan to support the Commitment has begun.

Safer Neighbourhoods panel training and business/youth engagement

21. Panel Training

The Community Engagement Programme (CEP) was delivered by the MPA, MPS and Safer London Foundation (the Metropolitan Police charity). Its aim was to provide support and information to Safer Neighbourhood Panel (SNP) Members and Community Police Engagement Groups (CPEGs) throughout London. The programme ended in June 2010 and has been subject to evaluation by the Middlesex University.

22. Business Engagement

Safer Neighbourhoods central have visited BCUs to ascertain the level and quality of existing business engagement processes and to gather information on the support and guidance that town centre teams and SNTs require to enhance engagement with the business community. Meetings have been arranged with various business partners, including ASDA Walmart and the New West End Company (London against business crime), to gather information on business community concerns have and to discuss the best methods of engagement and problem solving between police and these agencies. This work is ongoing.

23. Youth Survey

The diversity and citizen focus directorate are currently working with the central SN team to analyse the youth survey by demographics. The first round of findings will be submitted to the diversity executive board chaired by the Deputy Commissioner on 27 September 2010.

24. Town Centre Programme

Under the Presence strand of the Commissioner’s Five Ps, since 1st July 2010, all 32 BCUs are expected to provide a total of 71, 680 patrol hours across their priority town centre(s) each month.

Pillar Three: Standards of behaviour

25. Enhanced MPA/MPS Fraud and Corruption Awareness Strategy

• A draft SOP “Prevention and Detection of Internal Fraud” has now been produced.
• Anti-Fraud Strategy due to be finalised shortly and joint meetings are to be arranged with all stakeholders to agree owners and updates to the MPA/MPS Fraud Prevention Strategy Implementation Plan.

26. Introducing the Equality Standard

• A corporate article has been published which supports the next stage of the Equality Standard roll out and reminds TP Boroughs of their deadline commitments. All Boroughs and Business Groups have agreed to deadline for the return of their workbooks as equality and diversity evidence.
• A central quality assurance process started in July providing feedback to (B)OCUs with a view to developing their Diversity action plans by September.
• An integrated communication action plan has been developed and will be progressed with guidance from DPA. Initially an article on the progress of the Equality Standards for the Police Service (ESPS) will appear in both the Job and Diversity Space.
• DCFD has met with the MPA to develop a peer/community review process. The MPA has agreed that it will take the lead for this verification process and will advise DCFD on the level of support that can be expected.

C. Other organisational and community implications

Equality and diversity impact

1. 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.

Consideration of MET Forward

2. This report provides assurance that the MPS is improving the governance infrastructure of the MPS to ensure better value for money when fighting crime. 

Financial implications

3. All costs associated with the work streams identified in this report will be met from existing MPS budgets.

Legal implications

4. 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.

5. 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.

6. 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.

7. 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.

Environmental implications

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

Risk implications

9. The work streams in this report are key activity areas in risk area 1 of the corporate risk register “need to manage corporate governance effectively”. Improvement in these work areas continues to reduce the risk of a significant governance failure.

D. Background papers

None

E. Contact details

Report author: Jo Collins, Strategy and Improvement Department, MPS

For information contact:

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

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