Minutes

Minutes of the meeting of the Corporate Governance Committee of the Metropolitan Police Authority held on 7 July 2011 at 10 Dean Farrar Street, Westminster, London SW1H 0NY.

Present

Members

• Toby Harris (Chair)
• Valerie Brasse
• Joanne McCartney
• Co-opted members: Richard Stephenson (Director, Group Health, Safety and Environment, Transport for London).

MPA officers

• Bob Atkins (Treasurer)
• Catherine Crawford (Chief Executive)
• Julie Norgrove (Director, Audit Risk and Assurance)
• John Crompton (Committee Officer, Treasury Team).
• Nick Baker Head of Authority Business and Members Support attended for consideration of agenda item 5.

MPS officers

• Peter Brown (Head of Compliance)
• Nick Kettle (Strategic Manager, Safety and Health Risk Management)
• Ian Percival (Director of Group Finance)
• Nick Rodgers (Director of Finance)
• David Snelling (Traffic OCU Commander)

Also in attendance: Tom Edgell (Audit Manager), Karen McConnell (District Auditor) and Neil Harris (District Auditor) . PART 1

1. Apologies for absence

(Agenda item 1)

Apologies for absence were submitted on behalf of John Biggs, Linda Duncan and Caroline Pidgeon.

The Chair apologised that it had been necessary to change the date of the meeting due to a clash in his diary, and regretted that it had not been possible to find a new date which was convenient for all members.

2. Declarations of interests

(Agenda item 2)

No declarations were received.

3. Minutes of the Corporate Governance Committee (Part 1) – 10 March 2011

(Agenda item 3)

Resolved – That the minutes of the Corporate Governance Committee held on 10 March 2011 (Part 1) be signed and agreed as a correct record.

4. Corporate Governance Committee work programme

(Agenda item 4)

4.1 A report was submitted which the Committee intended to fulfil its role as set out in its terms of reference over the ensuing year.

4.2 In reply to a question regarding the continuation of the corporate governance role in the new MOPC structure, the Chair said that whilst it remained the case that there was no obligation in the draft legislation which would require Police and Crime Commissioners to establish a panel to provide oversight on corporate governance, the Chair of the MPA had indicated that it would be his intention to set up such a Panel.

4.3 In reply to a question from a member and following a discussion on gifts and hospitality the Director of Audit, Risk and Assurance advised that her directorate was due to carry out a review of the gifts and hospitality control framework. The Chair requested that any emerging findings from the review be reported to the next meeting of the Committee. He also reminded members that extracts from the various registers of gifts and hospitality appeared on the MPS website.

Resolved – That

1. The work plans as set out be agreed until June 2012 or the abolition of the Metropolitan Police Authority;

2. the equality objective for the Committee as set out in Section C of the report be retained;

3. emerging findings of the review into gifts and hospitality be reported to the next meeting of the Committee.

5. MPA urgency procedure

(Agenda item 5)

5.1 The annual report on the use of the MPA urgency procedure was submitted.

5.2 In reply to a question the Head of Authority Business and Member Support confirmed that arrangements would be put in place to record decisions made under the new MOPC. This may be carried out using a similar format to that for recording Mayoral decisions to ensure they were in the public domain.

5.3 Members commented that it was gratifying to note that there had been a reduction in the use of the urgency procedure.

Resolved –That the annual report on the use of the urgency procedure be noted.

6. External Audit progress report 2010/11

(Agenda item 6)

6.1 The report proved an update on external audit’s progress in delivering their responsibilities as the Authority’s external auditors. It also provided a summary of key emerging national issues and developments.

Resolved – That the District Auditor’s progress in delivering the audit plan for 2010/11 be noted.

7. External Audit fee 2011/12

(Agenda item 7)

7.1 A report was submitted which provided the proposed fee from the Audit Commission for 2011/12.

7.2 The District Auditor, Karen McConnell, reminded members that as stated in paragraph 4 of the report the proposed fee did not include any additional audit work which may be required on part year financial statements upon the abolition of the MPA which was expected to occur during the financial year and the production of opening financial statements for the new entity. Forward planning was being carried out although definitive advice had not yet been supplied from the Home Office on what would be required by way of a final set of accounts for the MPA with the establishment of the MOPC.

77.3 The Chair advised that he had recently discussed this and related issues with the District Auditor. He had subsequently received a letter from the Minister of State at the Home Office which provided further guidance in connection with final accounts and would pass a copy to the District Auditor for her views/comment.

Resolved – That the audit fee for 2011/12 be approved

8. Directorate of Audit Risk and Assurance draft annual report 2010/11

(Agenda item 8)

8.1 A report was submitted which contained the annual opinion of the Director of Audit, Risk and Assurance on the effectiveness of internal control within the MPS which was that the internal control environment had continued to improve and this had been achieved during a period of significant change but it was not, however, yet fully effective. The report also provided a summary of the work and performance of the Directorate of Audit, Risk and Assurance for 2010/11. .

8.2 In introducing the report the Director of Audit, Risk and Assurance said she would commend to members the slow but steady improvement in the internal control environment which had taken place. With regard to the concern around the lack of progress made in mapping the assurance framework referred to in the report, she had held a preliminary meeting with the Director of Finance to agree the way forward. The Director also pointed out that overall improvements to the governance framework were beginning to impact on the internal control environment.

88.3 The Chair agreed that the improvement was to be welcomed but would caution against complacency: there were some areas of concern such as the score of 4 for the allowances and expenses review and the fact that a score of 3 had been given in many of the follow up reports which indicated that the control framework in these areas was not yet adequate.

Resolved –That

1. The draft Annual Report of the Director of Audit, Risk and Assurance be approved for circulation to all members of the Authority; and

22. the Committee confirmed that the Directorate of Audit, Risk and Assurance provided an effective audit service to the Authority in 2010/11.

9. Annual governance statement

(Agenda item 9)

9.1 The MPA is required to undertake a review at least once a year of the effectiveness of its system of internal control and approve the Annual Governance Statement in its financial statements. The Statement includes details of existing 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 which is signed by the Commissioner.

9.2 In introducing the report the Deputy Treasurer asked that it be noted that the Annual Governance Statement no longer formed part of the statement of accounts but sits alongside the accounts.

Resolved – That

1. the Authority’s Annual Governance Statement for 2010/11 be agreed;

2. the Metropolitan Police Service’s Annual Assurance Statement be noted; and

33. the revised code of corporate governance be approved.

10. Update on MPA/MPS health and safety assurance process

(Agenda item 10)

10.1 A report was submitted which advised that the final phase of Health and Safety annual assurance process across the MPS had been carried out and letters of assurance had been received by the Commissioner in respect of all the business groups.

10.2 In introducing the report the Strategic Manager, Safety and Health Risk Management advised that since the report was written the Commissioner had provided an overall letter of assurance and this had been copied to members of the Committee. He advised that the business groups reviewed any issues which this exercise revealed as part of their Health and Safety governance arrangements. In reply to points raised by members the Strategic Manager stated that the assurance process was seen as being valuable and an integral part of the health and safety governance arrangements. The Strategic Manager, Safety and Health Risk Management also advised that the Deputy Commissioners Command was expanding in scope and this would be reflected in future iterations of the assurance letters.

Resolved – That the report be noted.

11. Directorate of Audit Risk and Assurance progress report

(Agenda item 11)

11.1 A report was submitted which summarised the work carried out by the Directorate of Audit, Risk and Assurance in the first quarter of 2011/12 and the key areas of activity planned for the second quarter.

Resolved – That the work undertaken by the Director of Audit, Risk and Assurance in the first quarter of 2011/12 and the key areas of activity planned for the second quarter be noted.

12. High risk DARA recommendations

(Agenda item 12)

12.1 This report updated members in relation to the outstanding high-risk MPA Directorate of Audit, Risk and Assurance (DARA) recommendations as at 23 June 2011.

12.2 Members requested that at the next meeting a more specific and up to date progress report is provided on the audit recommendations for crime related property.

112.3 A member referred to the Communities, Equalities and People Committee which was due to consider a report from the MPS on vetting at its next meeting (to be held that day) and was concerned that the report to be considered may be out of sequence with the policy developments outlined in the appendix to the High Risk Report under consideration. The Director of Audit, Risk and Assurance undertook to discuss the issue further with the member before the CEP meeting taking place that afternoon.

Resolved – That

1. the status of all the outstanding high risk recommendations made by the Directorate of Audit, Risk and Assurance in relation to MPS control systems be noted; and

22. an update be provided at the next meeting with regard to crime related property recommendations.

13. Anti fraud implementation plan update

(Agenda item 13)

13.1 This report updated members on the progress being made to implement the anti-fraud strategy which was approved by the Committee at its meeting on 2 December 2010.

13.2 Members noted that there had been good progress in implementing the Strategy.

Resolved – That the progress being made by the MPA and MPS in implementing the anti-fraud strategy be noted.

14. MPA risk management update

(Agenda item 14)

14.1 This report summarised the development of the MPA risk management process and included the current MPA corporate risk register.

Resolved – That the report be noted.

15. MPS corporate governance framework update

(Agenda item 15)

15.1 This report provided a progress update on work areas relating to the Metropolitan Police Service corporate governance framework.

Resolved – That the progress be made across a number of corporate governance work areas be noted.

16. Health and safety performance report

(Agenda item 16)

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

16.2 In reply to points from members on the high number of accidents relating to training the Strategic Manager, Safety and Health Risk Management stated he had held discussions with the Directorate of Leadership and Learning to examine the issue further.

16.3 A member concluded that the information provided would be even more useful if it was provided in the context of a 5 year time framework to enable trends to be identified. The Strategic Manager, Safety and Health Risk Management undertook to see how this could be addressed in future reports. Information on the suicide help line would also be included in the next report to the Committee.

Resolved – That the report be noted.

17. Police driving

(Agenda item 17)

17.1 A report was submitted which provided Information relating to police collisions and the Safe Driving Three programme. The report included data on trends over the last three years, the nature and severity of the collisions, an update on the MPS Safe Driving policy and any subsequent changes, an update on the four themes of education, police driving, processes and police collision investigation and lessons learnt and the action taken in respect of police officers involved in police collisions. The last report on this subject was considered in June 2006.

17.2 The Traffic OCU Commander attended for consideration of this report.

17.3 Richard Stephenson reminded members that he had suggested the Committee should receive the report and he had found it interesting and useful.

17.4 Summing up the discussion on the report the Chair suggested that i) an annual review be carried out and reported in future and ii) dip sampling is carried out on the fatal collisions with the outcome being reported either through the Corporate Governance or Professional Standards route as appropriate.

Resolved – That the report be noted.

18. Any other urgent business

(Agenda item 18)

18.1 There was none.

19. Exclusion of press and public

(Agenda item 19)

Resolved – That the press and public be asked to leave the meeting during discussion of the remaining item of business as 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

20. MPS Risk Management update

(Agenda item 20)

The report was noted.

21. Exempt appendix to high-risk audit recommendations

(Agenda item 21)

The information was noted.

22. Minutes of the Corporate Governance Committee (Part 2)–10 March 2011

(Agenda item 22)

The minutes of the Corporate Governance Committee held on 10 March 2011 (Part 2) were signed and agreed as a correct record.

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