Financial Management Strategic Programme

Report: 07
Date: 23 September 2004
By: Treasurer and Commissioner

Summary

The report presents the financial management strategic programme designed to secure continuing improvement in financial management in the MPS.

A. Recommendation

The Committees is asked to endorse the new financial management strategic programme set out in Appendix 1.

B. Supporting information

Introduction

1. The various initiatives which have been pursued since 2000 designed to improve financial management in the MPS and the Authority’s finances were consolidated in the financial management strategic programme. A final report of the original programme was made to the Finance Committee at its meeting on 24 May 2004. That report indicated that we were intending to bring forward a new four year programme of financial improvement and this is now attached as Appendix 1 to this report.

Overview

2. The new programme picks up items of unfinished business from the previous programme but reflects the current priorities in terms of areas where Finance Services will be directing its efforts in order to maintain the improvement achieved over the last four years.

3. The vision for the programme remains unchanged but the projected actions have been brought together under five key objectives, as follows:

• To support the implementation and maintenance of sound corporate governance arrangements to secure effective business controls and management of risk.
• To support the successful implementation of agreed organisational change including the establishment of appropriate sustaining finance capability.
• To secure improvements in the quality and utilisation of financial management information to all levels of management.
• To secure sound processes for effective resource management.
• To ensure that the Authority and Service respond effectively to wider developments in public finance.

4. Two key performance indicators have been identified. The Committee has previously been informed about the ‘auditor scored judgements’ (asj) produced as part of the initial performance assessment (IPA) of the MPA by the Audit Commission. These look at financial performance across five main headings: (a) financial standing, (b) internal financial control, (c) standards of financial conduct and the prevention and detection of fraud and corruption, (d) financial statements, and (e) legality of significant financial transactions. Performance is scored on a four point scale where 1 means ‘inadequate’ and 4 means ‘better than adequate’. On each of the five main headings asj is 3 (adequate). Our target has to be to achieve a score of 4 in any future assessments.

5. The second performance indicator is the Director of Internal Audit’s (DIA) annual opinion on the overall adequacy of internal control. The DIA rates internal control on a five point system where 1 is ‘good’ and 5 is ‘unacceptable’. The overall score for 2003/04 was 2.9, which reflects steady improvement over the last three years. In an organisation as large and complex as the MPS there will always be shortcomings in some control systems, which means that it is practically impossible to achieve a score of 1 for the organisation as a whole. A score of 2 (adequate) is a challenging but feasible target.

Delivery and reporting

6. The programme supports the Authority’s statutory responsibility for ensuring proper management of the Metropolitan Police finances and the Treasurer will be accountable on behalf of the Authority. The programme also supports the Commissioner’s delegated responsibility for day-to-day financial management and the Director of Resources is the responsible management board member with operational responsibility lying with the Director of Finance Services.

7. The programme will be reviewed on a regular basis to ensure its continuing relevance. An annual report on progress will be made to the Finance Committee.

C. Race and Equality impact

Potential equality and diversity implications of all aspects of the programme will be considered as they are taken forward.

D. Financial implications

The programme will be taken forward as part of the core business and within the budgets of the Finance function.

E. Background papers

None

F. Contact details

Report author: Peter Martin, Treasurer, MPA

For more information contact:

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

Send an e-mail linking to this page

Feedback