MPS corporate assurance update

Report: 9
Date: 10 October 2011
By: Director of Resources on behalf of the Commissioner

Summary

This report describes the revised reporting areas relating to corporate governance that have been identified through the Annual Assurance Review.

A. Recommendation

That members note the revised reporting areas relating to corporate governance in light of the progress being made across a number of the areas of work as set out in this report.

B. Supporting information

1. At its February meeting MPS Governance Board requested that the categories within the quarterly corporate governance framework report be revisited to ensure they are current and the significant improvements being carried out are captured. The Board also requested that areas where improved governance arrangements have now been embedded and are no longer viewed as risks are removed from the report.

2. The key areas that will now be reported on quarterly reflect those identified in the Annual Assurance Statement (AAS) review. The AAS review was carried out in April 2011 and focused on the 12 specific areas of governance which form part of the CIPFA/SOLACE framework and are key to the MPS’s overall corporate governance framework. For each area the key controls in place to support effective governance have been reviewed to ensure they are still relevant and effective. Of these areas, 9 are predominantly controlled and managed within the Resources and 3 within the Deputy Commissioner’s Portfolio. Other business areas also provided valuable input as appropriate to the review.

3. The 2010/11 Assurance Statement identified nine areas where significant improvement activity is planned or underway for the 2011/12 financial year. These are:

• Transitional change following the introduction of the Police Reform and Social Responsibility Bill.
• Embedding the MPS risk management framework
• Improvements in management information and reporting as part of the SAP work stream within the Developing Resource Management 2 Programme
• A review of the Financial Regulatory framework to improve accessibility and consistency
• Developments to the Financial Management Training Strategy
• Embedding the MPS partnership strategy
• Development of a new procurement strategy beyond 2012
• Creating a leadership development pathway
• Introduction of a streamlined Personal Development Review process to complement the MPS Performance Framework.

An explanation and update of each of these areas including key milestones can be found at appendix 1.

4. Wider corporate governance issues are also being considered as part of the MPS Corporate Social Responsibility framework and corporate risk processes; work is ongoing to align these processes.

5. To ensure that this report remains current and relevant it is recommended that significant new governance activity identified by day to day risk management processes are added to appendix 1 as they emerge throughout the year and that the current significant activity areas are removed as actions are completed and become “business as usual”.

6. A summary of previous reporting areas can be found at appendix 2 with information on their current governance arrangements and intentions for future reporting. Where they are considered to be significant governance controls (and are no longer reported here) they have been added to the corporate risk register to ensure that corporate oversight is maintained.

7. The MPA’s equivalent of the AAS, the Annual Governance Statement (AGS), has identified the following areas where further work is needed:

• risk management framework;
• internal control environment;
• change programme and savings framework;
• procurement control framework; and
• development of new governance arrangements in response to the Police and Social Responsibility Bill.

The MPS will report on these areas to the MPA’s Corporate Governance Committee as part of the MPA’s AGS quarterly update.

C. Other organisational and community implications

Equality and Diversity Impact

8. The model of corporate governance used by the MPS is based on the principles of openness; integrity; accountability and equality. The development of the corporate governance framework through areas identified for significant improvement should have a positive race and diversity impact by ensuring that these principles continue to inform the way in which MPS operates.

Financial Implications

9. All costs associated with the work streams identified in this report will be met from existing MPS budgets as approved in the 2011-14 Business Plan.

Legal Implications

10. The MPA are under a statutory duty to approve an Annual Governance Statement (AGS), under regulation 4 (2) of the Accounts & Audit (England) Regulations 2011 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.

11. In order that the MPA can discharge the 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.

12. 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.

13. 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

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

Risk Implications

15. The work streams in this report are key activity areas in risk area one 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, Finance Services

For information contact:

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

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