Minutes

Minutes of the Audit Panel of the Metropolitan Police Authority held on 9 December 2002 at 10 Dean Farrar Street, Westminster, London SW1H 0NY.

Present:

Members:

• Sir John Quinton (Chair)
• Eric Ollerenshaw (Deputy Chair)
• Rachel Whittaker

MPA Officers:

• Peter Martin (Treasurer)
• Peter Tickner (Director, Internal Audit)
• Nick Baker (Committee Services)

MPS Officers:

• Mike Jennings (Director of Finance)

Also in attendance: Kash Pandya (District Audit), Jon Hayes (District Audit) and Kevin Murray (KPMG).

Part 1

21. Apologies

(Agenda item 1)

Apologies were received from Cindy Butts.

22. Declarations of interest

(Agenda item 2)

No declarations were made.

23. Minutes of the meeting held on 16 September 2002

(Agenda item 3)

Members considered the minutes of the Panel meeting held on 16 September 2002.

Resolved – That the minutes of the meeting of the Panel held on 16 September 2002 be confirmed and signed as a correct record.

24. Chair’s and Members Update

(Agenda item 4)

Members were invited to give an oral update on any meetings or work associated with the Panel on. No reports were given.

25. Annual audit letter 2001/02

(Agenda item 5)

The Panel received a report that presented the annual audit letter for 2001/02.

Kash Pandya, District Auditor took members through the letter, highlighting key issues. It was noted that it was generally felt that there had been an improvement on last years position, with a considerable amount of work having been undertaken by members and officers to meet concerns raised and obtain improvements.

However, District Audit had qualified its opinion on the accounts due to reservations concerning provisions set a side to meet third party and police pension liabilities and weakness in arrangements for valuing fixed assets.

Members were informed that the MPA had demonstrated a strong commitment to best value and progress had been made towards a comprehensive performance management framework. The best value performance plan had not been qualified and although the quality of the performance information in the plan was higher, there was a need for further improvement. District Audit had assessed that the MPA/MPS’ management arrangements for ensuring the effective use of resources across a range of activities had demonstrated good practice in a number of areas; this needed to continue to secure greater consistency across the organisations.

Under financial aspects of corporate governance:- i) financial standing, it was noted that although tighter budgetary control arrangements had strengthened the Authority’s financial position, it remained fragile and required continual monitoring. It was suggested that the budget round for 2003/2004 would be difficult and might lead to hard decisions about levels of service. ii) systems of internal financial control, it was highlighted that, while efforts had been made to strengthen financial controls and systems within the MPA/MPS, further improvements were needed to avoid leaving the organisation vulnerable to criticism and potential loss.

Members asked for further details about the lack of a robust valuation arrangements for fixed assets. Tithe Treasurer confirmed that, following the appointment of an external valuer to review the valuation of assets, it was expected that there would be an improvement in the next set of accounts. Members also discussed the effective management of the move to a more devolved structure of financial controls and systems and the need for stronger management control of financial policies.

Resolved – That the audit letter be noted.

26. Internal audit strategy

(Agenda item 6)

The Panel received a report that outlined amendments that have been made to the Internal Audit strategy to reflect the published ‘missions’ of the Authority.

Members requested the following amendment to paragraph 4.1 of the strategy that ‘an opinion’ to replace ‘assurance’.

Resolved – That the revised Internal Audit Strategy be approved.

27. Internal Audit – progress report

(Agenda item 7)

Members considered a report that outlined the progress of the first six months of the financial year in achieving the 2002/2003 Internal Audit Plan. The report also summarised the results of the work to date undertaken by Internal Audit and the adequacy and effectiveness of control in MPS systems where Internal Audit has issued formal reports since April 1 2002.

There was continuing concern at failure to implement high risk recommendations and it was agreed that copies of appropriate reports would be reviewed by the Chair of this Panel to determine relevant actions.

Resolved - That

1. the Director of Internal Audit’s revised plans to achieve the approved programme within an under spend in the budget for Internal Audit this year;
2. Members note the current Internal Audit evaluation of the adequacy and effectiveness of internal control in the MPS; and
3. the Chair of the Panel review reports to determine relevant actions in order that high risk recommendations can be implemented.

28. Anti-Fraud and Corruption Policy and Fraud Response Plan

(Agenda item 8)

The Panel received a report that provided the draft Anti-Corruption Policy, Code of Practice and Fraud response plan that the MPA is required to have in place.

Members agreed to receive a tabled revised version of paragraphs 2.1 of the plan.

The Panel agreed that the ‘right line’ should be advertised as a confidential service, but anonymity could not be guaranteed. Members also highlighted the importance of communicating the policy to all staff.

Resolved – That

1. the Fraud Response Plan, including the revised tabled section 2.1 be approved; and
2. the Anti-Corruption Policy and Fraud Response Plan be recommended to the full MPA for formal adoption by the MPA.

The meeting closed at 11.25 a.m.

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