Minutes

Minutes of the Audit Panel of the Metropolitan Police Authority held on 20 June 2002 at Romney House, Westminster, London SW1P 3PY.

Present

Members

• Sir John Quinton (Chair)
• Eric Ollerenshaw (Deputy Chair), (items 1 to 5)
• Jennette Arnold
• Elizabeth Howlett

MPA Officers

• Peter Martin (Treasurer)
• Peter Tickner (Director, Internal Audit)
• Ruth Hastings Iqball (Secretariat)

MPS Officers

• Keith Luck (Director of Resources)
• Robin Bourn.

Also in attendance: Kash Pandya (District Auditor), Sharon Martin (Audit Manager, District Audit) and Richie Tandoc (Audit Manager, KPMG).

1 member of the press or public was present.

Part 1

17. Apologies

(Agenda item 1)

Apologies were received from R David Muir (Member), Bob Alexander (Head of Finance (MPS), Jon Hayes (District Audit Manager) and Kevin Murphy (KPMG).

18. Minutes of the meeting held on 19 March 2002

(Agenda item 2)

The Audit Panel considered the minutes of the meeting held on 19 March 2002. At the last meeting (item 8 ‘Internal Audit Progress Report, 2001/02), the Chair had indicated that it was unsatisfactory that so many high risk recommendations remained outstanding, and said that he would write to the MPS on the subject. He was informed that there had been some progress, but Members felt the Chair should still write to the Commissioner. (copy of letter attached for members information)

Resolved – That

• the minutes of the meeting of the meeting be confirmed and signed as a correct record; and
• the Chair of the Audit Panel should write to the Commissioner.

19. declarations of interests

(Agenda item 3)

No declarations made.

20. Chair’s and Members update

(Agenda item 4)

No report.

21. 2001/02 external audit progress report

(Agenda item 5)

Members received a progress report from District Audit. Members felt the format was lucid, and noted that the protocols had been agreed by the MPS, Treasurer and Members.

The District Auditor summarised progress with the 2001/2 programme. District Audit had recently agreed a protocol with the MPS to progress External Audit reports and recommendations following concerns about delays in responses to draft reports from the MPS. The District Auditor drew the Panel’s attention to the Employment Tribunals draft report where he had waited eight months for a response from the MPS. The Audit Panel agreed that this was unacceptable.

Kash Pandya then sought conformation of which MPA Committee would consider specific reports. The following was confirmed:

Finance Committee

• Client Side Management
• Overtime (after review by HR Committee)

Human Resources Committee

• Overtime
• Employment Tribunals

Coordination and Policing Committee

• Community Safety follow up

Audit Panel

• Review of Internal Consultancy

Resolved-

That the Panel’s concern about delays in MPS responses to the external auditor would be included in a letter from the Chair to the Commissioner.

22. Internal Audit Annual Report – 2001/02

(Agenda item 6)

A report was received containing a draft of the Annual Report which contained his opinion on the adequacy and effectiveness of internal control within the MPS.

Following a brief introduction from the Treasurer the Director of Internal Audit outlined the key points in his Annual Report. At the request of the Treasurer he had introduced a scoring system for each audit in order to provide a quantative measure of his overall opinion on control in the MPS. This could be used for future comparison of progress in improving control. Internal Audit had achieved 67% of the planned programme. This was partly due to staff shortages although significant resources had also been diverted during the year to assist the MPS at their request where urgent problems had arisen. The Director of Resources then recorded his gratitude to Internal Audit for the valuable assistance given to him during the year. After discussion members decided that any future significant changes to the agreed programme should be reported immediately to the Chair and brought to the next available Audit Panel.

The Director of Internal Audit informed members that a number of Internal Audit recommendations that had been accepted had not been implemented. In some instances this had led to avoidable losses through fraud and waste. Internal Audit had also experienced the same difficulties as District Audit in getting MPS responses to draft audit reports. The draft Appendix to the Annual Report contained significant gaps where MPS senior management had failed to respond to requests on current progress. The Panel also needed to be satisfied that in the few instances where MPS management had rejected high-risk audit recommendations adequate consideration had been given to the risk identified by Internal Audit. Members agreed that Sir John Quinton’s letter to the Commissioner should highlight the Panel’s concern about the matters raised by the Director of Internal Audit.

The Director of Resources commented that there was a budget growth implication in implementing some audit recommendations. The Panel noted that this was a matter to be discussed separately between the Director of Resources, the Treasurer and the Director of Internal Audit.

Resolved that:

1. Significant unforeseen changes to the agreed audit programme should be reported at the earliest opportunity to the Chair of the Audit Panel and reported to the next available Audit Panel meeting.
2. The Director of Internal Audit’s concerns would be included in the letter from Sir John Quinton to the Commissioner.
3. The final version of the Internal Audit Annual report be circulated by the Treasurer to all MPA members prior to the 25 July meeting of the Authority.

23. District audit review of Internal Audit – progress on recommendations

(Agenda item 7)

Members received a report summarising progress that had been made in implementing recommendations arising form the District Audit’s review of Internal Audit.

Resolved - that the progress made in implementing recommendations from the District Audit’s review of Internal Audit be noted.

24. Anti fraud and corruption policy

(Agenda item 8)

A report was received setting out the proposed MPA policy on dealing with fraud and corruption. It provided an outline of the areas that would need to be covered to ensure that the MPA had an adequate anti-fraud and corruption policy, and fraud response plan, in place. A detailed paper, agreed with the MPS, would be presented at the next Audit Panel.

Resolved - that

1. Members endorse the draft policy as the policy of the Metropolitan Police Authority; and
2. a full Code of Practice and Fraud Response Plan be received by the Audit Panel in September.

The meeting ended at 12.10 p.m.

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