Minutes - draft

These minutes are draft and are to be agreed.

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

Present

Members

• Toby Harris (Chair)
• John Biggs
• Valerie Brasse
•  Caroline Pidgeon
• Co-opted members: Linda Duncan and Richard Stephenson

MPA officers

• Bob Atkins (Treasurer)
• Julie Norgrove (Director, Audit Risk and Assurance)
• John Crompton (Committee Officer, Treasury Team)

MPS officers

• Peter Brown (Head of Compliance)
• Nick Kettle (Strategic Manager, Safety and Health Risk Management)
• Anne McMeel (Director of Resources) and Ian Percival (Director of Group Finance)
• Also in attendance: Tom Edgell (Audit Manager) and Karen McConnell (District Auditor)

23. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of Joanne McCartney

24. Declarations of interests

(Agenda item 2)

No declarations were received.

25. Minutes of the Corporate Governance Committee (Part 1) – 7 July 2011

(Agenda item 3)

Resolved – That the minutes of the Corporate Governance Committee held on 7 July 2011 (Part 1) be signed and agreed as a correct record.

26. Statement of Accounts for the year ended 31 March 2011 and annual governance report 2010/11

(Agenda item 4)

26.1 A report was submitted which presented the Authority’s audited set of accounts for 2010/11 and the Audit Commission’s Annual Governance Report on the MPA audit for 2010/11. Both documents had been approved by the Authority at its meeting on 15 September 2011.

26.2 In introducing the report the District Auditor drew attention to the fact that the statement of accounts was the first which had been required to be prepared in line with the International Financial Reporting Standards (IFRS). The District Auditor confirmed that the accounts fully met the IFRS requirements and she was aware that a significant amount of work had been carried out in preparing for the introduction of the Standards: this had clearly been very useful in achieving the satisfactory outcome.

26.3 Caroline Pigeon asked to be supplied with a list of the properties which were being marketed for sale and which is referred to in paragraph 14 of the covering report to the account.

26.4 With regard to the migration to the MOPC the District Auditor stated there were two areas in particular where there continued to be a lack of clarity: these were the requirements regarding the production of final accounts for the MPA and the production of accounts in the new MOPC set up. The District Auditor would continue to work closely with colleagues in the MPA and MPS to share information and to clarify the way forward.

26.5 The Treasurer confirmed that the financial governance arrangements for the MOPC and MPS were the subject of detailed discussions at the Home Office and by the relevant professional financial bodies. A Financial Management Code of Practice is to be produced by the Home Office to support the new arrangements.

26.6 The District Auditor said she wished to take the opportunity to update members in respect of the outsourcing the Audit Commission’s audit practice. A briefing paper had been circulated to members which stated that the Audit Commission will run the outsourcing process and will seek bids from audit firms based on three- and five-year contracts. The final approval of the contract awards was expected to take place in July 2012 with the staff transfers to the firms awarded contracts taking place in October 2012.

Resolved – That

1. the Statement of Accounts for 2010/11 and the Audit Commission’s Annual Governance Report be noted;
2. the Annual Governance Report action plan be noted;
3. the briefing paper on outsourcing the work of the Audit Commission’s audit practice be noted.

27. Directorate of Audit, Risk and Assurance (DARA) Progress Report

(Agenda item 5)

27.1 This report summarised the work carried out by the Directorate of Audit, Risk and Assurance (DARA) in the second quarter of 2011/12 and the key areas of activity planned for the third quarter. It also provides the latest position on the adequacy and effectiveness of the MPS internal control environment based on the final reports issued to date.

27.2 In introducing the report the Director of Audit Risk and Assurance said she wished to take the opportunity to place on record her thanks to Ken Gort, the Head of Counter Fraud, who had very recently retired having completed 48 years of public service, the last 10 of which had been at a senior level with the MPA. On behalf of the Committee the Chair thanked Ken for the considerable contribution he had made to the work of the Committee and also wished him well in his retirement.

Resolved – That

1. the work undertaken by the Directorate of Audit, Risk and Assurance in the second quarter of the year and the key areas of activity planned for the third quarter be noted; and
2. the evaluation of the current position on the adequacy of the MPS internal control environment be noted.

28. High Risk DARA Recommendations

(Agenda item 6)

28.1 This report updated members in relation to the outstanding high-risk MPA Directorate of Audit, Risk and Assurance (DARA) recommendations as at 31 August 2011.

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

29. Fraud Risk Assessment

(Agenda item 7)

29.1 This report advised that the Directorate of Audit, Risk and Assurance has conducted an analysis of fraud risks in the MPA and MPS. The report presents the risk analysis and sets out the future use of the assessment.

29.2 In introducing the report the Director of Audit, Risk and Assurance said that a more detailed briefing on the methodology could be provided for members if required.

29.3. Members found the report to be clear and expressed their appreciation at the considerable work that had been carried out in producing the analysis..

Resolved – That the fraud risk analysis be noted and endorsed for use within the MPA and MPS.

30. MPA Risk Management Update

(Agenda item 8)

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

30.2 Members raised several aspects of the risks concerning the migration to the MOPC (risk area 2). The Treasurer provided an update on the implementation arrangements. He sat on the London Transition Board and it was currently anticipated that the new set up there would be introduced very early in the new year. The timetable for London was therefore very tight and was dependent on the drafting of secondary legislation which would need to be laid in Parliament. There was still detail to be Resolved on the financial governance aspects. Looking at the transition on a national basis the overall implementation position was considered to be satisfactory, but this to some extent reflected the fact that outside London the new arrangements were being introduced towards the end of 2012 rather than at the beginning.

30.2 Arising from a discussion on the risks concerning the migration to the MOPC it was agreed that a report be submitted to the December meeting which sets out the proposed corporate governance framework for the MOPC organisation. (It was noted that on the basis of the update which had been provided by the Treasurer the December meeting was likely to be the final meeting of the Corporate Governance Committee. )

Resolved – That

1. the report be noted; and
2. a report be submitted to the December meeting of the Committee which set out the governance framework for the MOPC set up.

31. MPS Corporate assurance Update

(Agenda item 9)

31.1 This report described the revised reporting arrangements relating to corporate governance which have been identified through the Annual Assurance Review. A supporting appendix provided an explanation of these together with key milestones and an update as at the end of the first quarter.

Resolved – That the revised reporting arrangements relating to a number of areas of work be noted.

32. Annual Governance Statement quarterly update

(Agenda item 10)

32.1 A report was submitted which provided an update on progress in addressing the significant governance issues which were included in the statement of accounts for 2010/11.

Resolved – That the progress in addressing the significant governance issues included in the 2010/11 Annual Governance Statement be noted.

33. Health and safety performance report

(Agenda item 11)

33.1 This report provided an overview of Health and Safety performance in the MPS. It included an analysis of accidents over the period 2004 to 2010 which had been requested by members previously.

33.2 The Strategic Manager, Safety and Health Risk Management provided an update on the injuries sustained during the disturbances which had occurred in August. The figure of 287 injuries reported in paragraph 24 had now increased to 318. The Members requested an update on the status of Police Officers and Staff injured.

33.3 Richard Stephenson said he found the five year information presented appendices 8, 9 and 10 very useful. The data trend showed a continued improvement and at a rate which would typically denote satisfactory progress for an organisation of this size and complexity.

33.4 Members referred to the monthly figures for access to Occupational Health suicide awareness and prevention website. The access figures seemed to be rather high and it would be useful at a future meeting to learn whether there had been any further analysis of the reasons for visiting the site and for the data supplied to be broken down further to show the grade of those accessing the various parts of the site.

Resolved – That the report be noted.

34. Any urgent business

(Agenda item 12)

34.1 There was none.

35. Exclusion of press and public

(Agenda item 13)

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

36. MPS Risk Management update

(Agenda item 14)

The report was noted.

37. Exempt appendix to high-risk audit recommendations

(Agenda item 15)

The information was noted.

38. Minutes of the Corporate Governance Committee (Part 2) – 7 July 2011

(Agenda item 16)

The minutes of the Corporate Governance Committee held on 7 July 2011 (Part 2) were signed and agreed as a correct record.

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