POLICE AND CRIME COMMISSIONER FOR MERSEYSIDE AND MERSEYSIDE POLICE JOINT AUDIT COMMITTEE

Transcription

1 POLICE AND CRIME COMMISSIONER FOR MERSEYSIDE AND MERSEYSIDE POLICE JOINT AUDIT COMMITTEE At a meeting of the Joint Audit Committee held on Thursday, 12th February 2015 at Police Mutual, 20 Chapel Street, Liverpool 3, at 2.00pm, the following were present:- Members Tom P. Kelly (Chair) David Bradbury Tom C. Kelly Chad Thompson Office of the Police and Crime Commissioner John Riley - Chief Finance Officer Merseyside Police Geoff Broadhead - Director of Resources Darren Martland - T/ACC Collaboration Project Karen Cummings - D/Chief Superintendent, Professional Standards Department Mark Turley - Head of Audit Shirley Jones - Corporate Support and Development Department Andy Hughes - Inspector, Corporate Criminal Justice Laura Wild - Personal Assistant to T/ACC Collaboration Project Paul Vautrinot - Corporate Support and Development Department (Secretary) External Audit Paul Basnett - Grant Thornton UK LLP 1. Apologies for Absence No apologies for absence were received. 2. Declarations of Interests No declarations of interests were received. 3. Minutes of the Last Meeting The minutes of the last meeting held on 6 th November 2014 were accepted as a true and accurate record. 4. Matters Arising There were no matters arising.

2 5. Code of Ethics and Standards and Values The Committee received a presentation on the Force s Code of Ethics and Standards and Values. The presentation described the background and need to develop a code of ethics that comprised 9 policing principles and 10 standards of behaviour. The code also promoted use of the National Decision Model. In addition, the presentation outlined the Force s standards and values policy, which was an integral part of the Chief Constable s Just trilogy campaign (Just Think, Just Talk and Just Lead). The presentation also provided a breakdown and current trends of complaints since April 2013, which showed reductions in the majority of complaint categories. Finally, the presentation outlined the Force s integrity and anti-corruption strategy and outcome of a recent Her Majesty s Inspectorate of Constabulary Inspection of integrity and corruption, with the Force receiving a positive report. Merseyside Police had been highlighted as one of the lead forces in this area. In response to Members questions, the Committee was advised of the governance structures in place to deal with and manage complaints effectively, which included robust internal management practices, regular meetings with the Independent Police Complaints Commission and Police Federation, and dip sampling of cases by the Police and Crime Commissioner. Members were given an assurance that despite ongoing austerity measures and increasing workloads the Force was committed to maintaining professional standards and values. Members were further advised that 7 forces had set up pilot independent ethics committees the outcome of which was being closely monitored. Resolved: that the presentation be noted /16 Budget and Updated Medium Term Financial Strategy 2015/16 to 2018/19 The Committee received a presentation on the 2015/16 budget and updated medium term strategy 2015/16 to 2018/19. The presentation included headline statements on the financial settlement, an illustrated balanced budget for 2015/16, together with budgeted staffing levels, precept proposals and the outcome of public consultation. The Police and Crime Panel had also been consulted at a meeting on 3 rd February 2015 and agreed unanimously to support the proposal to increase the precept by 1.95%. The Police and Crime Commissioner would make a final decision on the precept level at a special budget meeting on 19 th February In response to Members questions the Committee was advised that the one-off contribution of 8.4 million from reserves needed to balance the 2015/16 budget would be used to fund PCSOs and a short term establishment of 4,000 police officers. This contribution would leave a reserve balance of 30 million which had already been ear-marked for future expenditure on the Estates Strategy and force restructure. Members would be provided with further details of Force re-structure (Sustaining Excellence Programme) at a future meeting. The importance of maintaining certain levels of police officers to ensure resilience was acknowledged, however, all areas of policing would be scrutinised, and efficiencies and cuts made where necessary. Resolved: that the presentation be noted. Page 2 of 5 Joint Audit Committee 12 th February 2015

3 7. Terms of Reference and Draft Meeting Timetable 2015/16 The Committee considered a joint report of the PCC s Chief Finance Officer and Chief Constable s Chief Finance Officer that set out the Committee s Terms of Reference for 2015/16, to be formally approved by the PCC and Chief Constable in March The report also proposed a work schedule and timetable of Audit Committee meetings for 2015/16. Except for the addition of Treasury Management the Terms of Reference were unchanged from those previously agreed at the Audit Committee meeting on 18 th September As previously highlighted, Members training on value for money and guidance on the role of championing certain areas of policing was to be provided. Resolved: that: a) the Committee s Terms of Reference for 2015/16, the proposed work schedule and timetable for 2015/16, together with Members training and awareness arrangements be noted; b) the next update report on risk management be submitted to the meeting scheduled for 17 th September 2015; and c) the PCC s Chief of Staff attend the Audit Committee once a year to discuss annual governance arrangements. 8. Update on Progress Against the Annual Internal Audit Plan 2014/15 that updated Members on progress against the approved Internal Audit Plan. Members were reminded that progress against the plan during quarter 1 had fallen behind schedule largely as a result of unexpected staff absences. Subsequently, progress has been made in catching up lost time, however the changing nature of risks had resulted in some amendments to the original plan in relation to audits on procurement, payroll and civil litigation. The 2014/15 plan included 90 days of external contractor time to undertake 3-4 of the planned 22 audits and a contractor had started work on 26th January The intention was to retain the services of the contractor for a maximum of 50 days before the end of the financial year. Members referred to the last meeting of the Audit Committee where a discussion took place around the possible deferment of audits to allow the Audit Team to focus on fewer audits, rather than completing work too speedily. Subsequently, it had been decided not to postpone this work to the following financial year as it was firmly believed that, given the additional temporary support of an outside contractor, all work contained in the current plan was achievable. Page 3 of 5 Joint Audit Committee 12 th February 2015

4 9. Internal Audit Actions Tracker that provided Members with an assurance that processes were in place to track the implementation of management actions resulting from internal audit reports. Members noted that a number of management actions were still to be implemented, particularly in the Operations portfolio, however these were not due to be implemented until the end of March It was agreed that, in future, the actions tracker report should be amalgamated with the progress report on the internal audit plan. 10. Annual Internal Audit Plan 2015/16 that provided Members with an opportunity to identify topics for inclusion in the 2015/16 Internal Audit Plan. Members were reminded that the Internal Audit Charter required the preparation of an annual risk based audit plan, to be agreed with the Chief Constable and the Commissioner. As part of the process of preparing the plan, the Head of Internal Audit held discussions with stakeholders across the Force and PCC s Office, together with other relevant external parties including the organisations external auditors, Grant Thornton. To aid identification of appropriate topics, a 3 year audit cycle included in the 2014/15 audit plan had also been taken into account, which was proportionate and based on risk. It was agreed that further scrutiny of financial systems should be included in the plan, together with payroll and procurement. It was also noted that in future there may be fewer but more in-depth audits included in the 2015/16 plan. Resolved that: a) the report be noted; and b) a further report on the annual internal audit plan for 2015/16 be submitted to the next meeting of the Audit Committee. 11. Treasury Management Strategy 2015/16 The Committee considered a report of the PCC s Chief Finance Officer that enabled Members to consider the draft Treasury Management Strategy for 2015/16 prior to its approval by the PCC on 19 th February Members were reminded that in November 2014 the PCC nominated the Joint Audit Committee to be responsible for ensuring effective scrutiny of the treasury management strategy and policies. It was confirmed that the strategy had been prepared in accordance with the 2011 revised CIPFA Code of Practice on Treasury Management in Local Authorities (the Treasury Management Code). It was noted that the PCC would receive half yearly reports on the strategy and these would be shared with Members. Page 4 of 5 Joint Audit Committee 12 th February 2015

5 Resolved: that a) the report be noted; and b) the draft Treasury Management Strategy for 2015/16 be recommended for adoption by the PCC. 12. External Audit Members considered Grant Thornton s (external auditors) progress report in terms of delivering external audit responsibilities for the PCC for Merseyside and the Chief Constable of Merseyside. The report also included a summary of emerging national issues and developments. Members were informed that Grant Thornton had undertaken some interim testing of systems the outcome of which would be reported to Members at the next meeting. Attention was drawn to the HMIC inspection of crime recording in which all 43 forces had been inspected and it was noted that the PCC had put plans in place to address the issues raised. Grant Thornton had also launched a review of governance ( All aboard ) in local government and various other organisations, including the police. The review had concluded that most risks were well managed but some Members had little or no influence in the decision making process and their effectiveness could be improved. 13. Date of Next Meeting The next meeting of the Joint Audit Committee will be held on Thursday 7 th May 2015, at Police Mutual, 20 Chapel Street, Liverpool 3, commencing at 2.00pm. Page 5 of 5 Joint Audit Committee 12 th February 2015