Members allowances and expenses

Report: 9
Date: 15 September 2010
By: Chief Executive

Summary

This report provides an update to the recommendations of the Directorate of Audit, Risk and Assessment (DARA) report on MPA members’ allowances and expenses.

A. Recommendation

That the report be received.

B. Supporting information

1. At the meeting of the Committee in March 2010, members requested that report be presented that provided an update on the recommendations of the Directorate of Audit, Risk and Assessment (DARA) report on MPA members allowances and expenses.

2. This review was carried out at the request of the MPA Senior Management Team (SMT) in order to ensure that adequate and effective methods for the payment of allowances and expenses to MPA members are in place and a final report was presented to the MPA SMT in late April 2010.

3. The overall objective of the audit was to review, evaluate and conclude on the adequacy of internal controls established by MPA management over the payment of allowances and expenses to MPA members.  The Audit set out to seek assurance that an adequate control framework is in place, including:

• Claims are made in accordance with approved regulations and policies;
• Allowances and expenses paid are valid, reasonable, authorised properly and made in a timely manner;
• Allowance and expenses claims are monitored and reviewed;
• All records and documents are maintained in a secure manner.

4. A full copy of the DARA report and recommendations are given at Appendix 1 The recommendations of the DARA report and the progress made are given at Appendix 2.

C. Other organisational and community implications

Equality and diversity impact

There are no race and diversity implications.

MET Forward

There are no direct implications for the delivery of Met Forward stemming from this report.

Financial implications

There are no direct financial implications arising from this report, however, Officers have identified a small potential saving in expenses if members agree to adopt use of Oyster cards.

Legal implications

Allowances and expenses are paid by the Metropolitan Police Authority, in exercise of the powers conferred by the Greater London Authority Act 1999.

Environmental implications

There are no environmental implications

Risk implications

There are no risk implications

D. Background papers

None

E. Contact details

Report author(s): Nick Baker, MPA

For more information contact:

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

Appendix 2

1. We recommend that members’ new starter forms are countersigned by the MPA Chief Executive.

Current status: Complete - All members’ new starter forms are countersigned by the MPA Chief Executive.

2. We recommend that:

3.3.1 A breakdown of the allowances due to each member is recorded and signed by the officer carrying out the calculation and also checked and countersigned by an independent officer;

Current status: Complete - Members Support record and sign claims – Head of Authority Business & Member Support countersigned

3.3.2 Members are reminded that it is their responsibility to check that the allowance paid to them each month is correct;

Current status: Complete

3.3.3 The notification to LogicaCMG of the allowances to be paid to each member is signed by the officer who puts together the payment details and is countersigned by an authorised officer.

Current status: Complete - Members Support record and sign – Chief Executive countersigns.

3. We recommend that members are reminded of the need to adhere to the three month deadline for submitting expense claims and that Chief Executive approval for the submission of late claims is recorded along with the reason for the late claim.

Current status: Complete - Members Support remind members on regular basis. Any late claims are subject to Chief Executive approval and reason for lateness are recorded.

4. We recommend that the members expenses claim form is adjusted to show the location the journey being claimed started and ended.

Current status: Complete - Form adjusted.

5. We recommend that members provide a copy of their car insurance certificate which contains a business user clause prior to using their car for MPA business, if claims are made without the prior provision of an appropriate insurance certificate the claims should not be reimbursed.

Current status: Ongoing. Some members yet to provide details.

6. We recommend that all claim forms are countersigned by an authorised officer.

Current status: Complete

7. We recommend that claim forms include the reason why the member has needed to use a taxi and that this is monitored.

Current status: Complete - Form adapted for reasons for use of taxi to be to be stated and monitored.

8. We recommend that limits on the amount to be spent on business entertaining by MPA members are introduced.

Current status - Ongoing - Currently the scheme is explicit in priori agreement being sought on entertaining and it is not encouraged. Officers looking at ‘GLA family’ allowance schemes for other examples of possible limits.

9. We recommend that claims for business entertainment contain details of the names and organisations of recipients and the purpose of the meeting and formally recorded prior approval is obtained for all business entertaining.

Current status: Complete

10. We recommend that:

3.11.1 Members are reminded of the requirement to provide receipts to support expenses claims;

Current status: Complete – Officers remind members on a monthly basis of this requirement

3.11.2 The introduction of Oyster cards for members’ travel is considered.

Current status: On-going. Officers have explored the feasibility of introducing Oyster cards and are in the process of consulting with members

11. We recommend that all allowance and expense claims are reconciled on a monthly basis to MetFIN and the budget by an officer who is independent of the payments process.

Current status: Complete - allowance and expense claims are reconciled on a monthly basis by MPA Treasury Officers.

Send an e-mail linking to this page

Feedback