Minutes

Minutes of the meeting of the Corporate Governance Committee of the Metropolitan Police Authority held on 13 September 2010 at 10 Dean Farrar Street, Westminster, London SW1H 0NY.

Present

Members

• Toby Harris (Chair)
• John Biggs
• 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

• Bob Atkins (Treasurer)
• Catherine Crawford (Chief Executive)
• Alan Johnson (Policy Officer)
• Julie Norgrove (Director, Audit Risk and Assurance)
• John Crompton (Committee officer, Treasury Team)

MPS officers

• Paul Daly (Director of Exchequer Services)
• Nick Kettle (Head of Safety and Health. Risk Management Team)
• Anne McMeel (Director of Resources)
• Michael Orchard (Directorate of Professional Standards)
• Nick Rogers (Director of Finance Services)
• Ellie Ryan (Strategic Director Employee Relations, Health and Well Being)

Also in attendance: Tom Edgell and Martin Searle (Audit Managers, Audit Commission).

1. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of Valerie Brasse.

2. Declarations of interests

(Agenda item 2)

No declarations were received.

3. Minutes of the Corporate Governance Committee (part 1) – 14 June 2010

(Agenda item 3)

Resolved – That the minutes of the Corporate Governance Committee held on 14 June 2010 (Part 1) be signed and agreed as a correct record.

4. Audit Commission annual governance report 2009/2010

(Agenda item 4)

4.1 The Audit Commission’s Annual Governance report on the MPA audit 2009/10 was submitted. It presented an unqualified audit opinion.

4.2 A revised version of the report and an addendum from the Audit Commission which identified two further areas of adjustment which had been identified and agreed was circulated before the meeting.

4.3 The District Auditor and Audit Manager were present to introduce the Audit Commission’s annual governance report on the MPA covering the audit of the Authority for the year ended March 2009. Members were informed that although there were some technical considerations to be dealt with it was proposed to give an unqualified opinion on the accounts.

4.4 In reply to a question from the Chair the District Auditor advised that whilst clarification was awaited on implications for the Audit Commission following the recent Government announcement, it was anticipated that work for the MPA would continue as usual for the present and next two financial years.

Resolved – That

1. the Audit Commission’s annual governance report on the MPA audit for 2009/10 be received; and
2. the adjusted amendment to the accounts (Appendix 2) of the Audit Commission’s report, the draft letter of representation (appendix 3) and action plan (appendix 5) be noted.

5. Directorate of Audit, Risk and Assurance (DARA) quarterly progress report

(Agenda item 5)

5.1 A report was submitted which summarised the work carried out by the Directorate of Audit, Risk and Assurance in the second quarter of 2010/11 and the key areas of work planned for the third quarter.

5.2 Members noted that a lower percentage of recommendations have been implemented for those made in 2009/10 compared to that in 2008/9 and sought confirmation that this was not due to a downward trend. The Director of Audit, Risk and Assurance confirmed that it was mainly due to specific audits for example vetting and security where recommendations had not been implemented but it was not a general trend as evidenced by the good progress reported on the follow ups.

RESOLVED – That

1. The work undertaken by the Directorate of Audit Risk and Assurance and the progress made in achieving the 2010/11 plan be noted;and
2. the current evaluation of the adequacy and effectiveness of internal control in the MPS be noted. .

6. Outstanding high risk DARA recommendations

(Agenda item 6)

6.1 This report updated members in relation to the outstanding high-risk MPA Directorate of Audit, Risk and Assurance (DARA) recommendations, as at 30 July 2010.

6.2 The Chair asked for greater clarity around the target dates for implementation of those recommendations that are outstanding.

Resolved – That the status of all outstanding high risk recommendations made in relation to MPS control systems be noted

7. MPA risk management

(Agenda item 7)

7.1 A report was submitted which summarised the development of the MPA risk management process and included the current MPA corporate risk register.

Resolved –. That the MPA corporate risk register and the on-going development of the MPA risk management process be noted.

8. MPS corporate governance framework update

(Agenda item 8)

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

Resolved –That the report be noted.

9. Annual governance statement quarterly update

(Agenda item 9)

9.1 The Authority is required to include an Annual Governance Statement in its financial statements. The Annual Governance Statement includes details of governance arrangements, highlighting how effectively they are being deployed and identifying significant governance issues and actions being taken to address them. In producing the Annual Governance Statement reliance is placed on the Annual Assurance Statement produced by the Metropolitan Police Service. A report was submitted which provided an update on progress in addressing the significant governance issues included in the statement of accounts for 2009/10

Resolved – That the progress in addressing the significant governance issues included in the 2009/10 Annual Governance Statement for the MPA be noted

10. Implementing financial reporting standards

(Agenda item 10)

10.1 This report provided the Committee with a quarterly progress update on the International Financial Reporting Standards (IFRS) project. It also updated members on the impact of the changes in accounting policies applicable for the year ending 31 March 2011. The Committee noted that the new processes will need to be in place by March 2011 and not 2010 as stated in paragraph 6 and that good progress had been made to date.

Resolved – That the report be noted.

11. Health and safety performance report

(Agenda item 11)

11.1 This report provided an overview of Health and Safety Performance.

11.2 Richard Stephenson said he was pleased to see that data was now being presented over a five year period, although ideally it should be accompanied by some narrative which provided a commentary on trends etc. He also requested that information be provided at the next meeting on the training accident study.

11.3 4. The Chair noted that the external independent Health and Safety audit referred to in paragraph 2 had been published some time ago, yet the Committee had not formally considered the report or its recommendations. He requested that the report and the action plan be submitted to the next meeting.

111.4 The Head of Safety and Health, Risk Management Team undertook to provide the report and action plan. He also advised that the final report and recommendations were agreed in June 2010; this was after final discussions between the auditors and the MPA. As a result this had meant that the MPS Strategic Health and Safety Committee had only recently started work in relation to the recommendations. The strategy for the implementation of the recommendations had been agreed by the Committee at its meeting on 7 September 2010. The MPA had been kept appraised of progress.

Resolved – That

1. the report be noted;
2. information be provided at the next meeting on the training accident study; and
3. a report on the external independent Health and Safety audit be submitted to the next meeting together with the action plan.

12. Corporate manslaughter legislation update

(Agenda item 12)

12.1 A report was submitted which provided an update in relation to the corporate manslaughter legislation.

Resolved – That the report be noted.

13. Business charge card update

(Agenda item 13)

13.1 This report updated members of progress made in reviewing and investigating the potential misuse of MPS Amex charge cards. It is based on information from the MPA Directorate of Audit, Risk and Assurance, MPS Exchequer Services and MPS Directorate of Professional Standards. /p>

13.2 DCI Orchard reported that it had been decided not to send the training and guidance letters referred to in paragraph 8 in view of the long time which had elapsed since claims had been made. This was to be reported to the IPCC.

13.3 The Chief Executive advised that the Professional Standards Cases Sub-Committee had taken a decision to write to ACPO rank officers but this was subject to possible review following receipt of any views from the IPCC.

113.4 Members sought reassurance that those officers who had used AMEX cards out of policy and currently had a Barclaycard were not continuing to use the charge cards out of policy. DCI Orchard confirmed that the letters had been intended for those who had not followed the policy on the use of the card and stressed there was no evidence of misconduct

Resolved – That

1. The progress made by the Directorate of Professional Standards in reviewing and investigating the potential misuse of Amex charge cards within the MPS (including any non-MPS holders of MPS cards) be noted; and
2. the estimate of the likely time to complete the reviews and investigations by the Directorate of Professional Standards and resources required be noted.

14. Any other urgent business

(Agenda item 14)

14.1 There was none.

15. 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.

Summary of items considered in part 2

16. MPS Risk Management update

(Agenda item16)

The Director of Resources presented the report which summarised the MPS current assessment of key corporate risks. Members noted in particular the key risks associated with the Comprehensive Spending Review and the volume of change that is taking place within the MPS.

Report noted.

17. Exempt appendix to high-risk audit recommendations

(Agenda item 17)

Information noted.

18. Minutes of the Corporate Governance Committee (Part 2) – 14 June 2010

(Agenda item 18)

The minutes of the Corporate Governance Committee held on 14 June 2010 (Part 2) were signed and agreed as a correct record.

Send an e-mail linking to this page

Feedback