POLICE AND CRIME COMMISSIONER FOR MERSEYSIDE AND MERSEYSIDE POLICE JOINT AUDIT COMMITTEE At a meeting of the Joint Audit Committee held on Thursday, 22 September 2016 at Police Mutual Assurance Society, 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 Merseyside (OPCCM) John Riley - Chief Finance Officer Clive Howarth - Interim Chief Executive Merseyside Police Geoff Broadhead - Director of Resources Mark Turley - Head of Internal Audit Paul Vautrinot - Corporate Support and Development Department (Secretary) External Audit Paul Basnett - Grant Thornton UK LLP Mike Thomas - Grant Thornton UK LLP Jess Hambley - Grant Thornton UK LLP 1. Apologies for Absence No apologies for absence were received. 2. Declarations of Interests Chad Thompson declared a personal interest in the Children s Services. Tom C Kelly declared a personal interest in the police launch (boat), which was operated by the North West Police Underwater Search and Marine Unit. 3. Minutes of the Last Meeting The minutes of the last meeting held on 5 May 2016 were accepted as a true and accurate record.
4. Matters Arising a) Corporate Governance Framework Members were informed that CIPFA guidance on the production of the Corporate Governance Framework had now been received and a report would be tabled at the next meeting of the Audit Committee on 1 st December 2016. b) Merseyside Police Storage Facilities Reference was made to the evidence management audit where Members had expressed concern over the level of resources and management practices in relation to storage facilities. Members were informed that improving storage facilities and associated processes may take some time to fully resolve, however the recent acquisition of new storage facilities in Edge Lane, Liverpool would greatly assist in this regard. 5. Draft Statement of Accounts 2015/16 and Grant Thornton s Draft Annual Governance Report Members considered a report of the PCC s Chief Finance Officer and Chief Constable s Director of Resources which contained a draft Statement of Accounts for 2015/16 and Grant Thornton s Draft Annual Governance Report. The report also asked that the Committee consider and recommend the approval of the draft Annual Accounts by the Police and Crime Commissioner (PCC) and Chief Constable. Reference was made to Grant Thornton s Joint Audit Findings for the PCC and Chief Constable and to the suggestion within the value for money section that there was scope for developing the reporting on the progress of the Estates Strategy, particularly around key deliverables. Members discussed how they could be better informed and updated on the Estates Strategy. Members were advised that updates on the Strategy were already discussed in a number of meetings and a transparent process was already in place. For example, the Police and Crime Panel considered update reports on the Estates Strategy on a half yearly basis and PCC key decisions were published in the PCC s website. In addition, an audit of the Estates Strategy was planned for the future. However, it was agreed that an update report on the Estates Strategy be submitted to the Audit Committee on an annual basis. Reference was also made to a joint targeted area inspection by Ofsted, HM Inspector of Probation, the Care Quality Commission and HM Inspector of Constabulary which focused on a multi-agency response to abuse and neglect among vulnerable children and young people in Merseyside. This was a new form of inspection and it was agreed that outcomes from future inspections of a similar nature should be included in audit update reports. a) the contents of Grant Thornton s Draft Annual Governance report be noted; b) the audited draft Statement of Accounts be noted and it be recommended that the PCC and Chief Constable approve the accounts; Page 2 of 6 Joint Audit Committee 22 September 2016
c) the contents of the draft letter of management representation prior to signing by the PCC, the Chief Constable and the Chief Finance Officers be endorsed, with a separate letter being signed and sent to Grant Thornton UK LLP from the PCC and Chief Constable; d) an update report on the Estates Strategy be submitted to the Joint Audit Committee on an annual basis; e) findings from joint agency inspections be included in future audit update reports, including actions plans to address any areas for improvement; f) Paul Basnett and Fiona Blatcher, both of whom would be retiring in the near future, be thanked for all their work and support whilst employed by Grant Thornton; g) The PCC and Chief Constable s Finance staff be thanked for their work whilst preparing the accounts. 6. Office of the Police and Crime Commissioner for Merseyside - Risk Management Update Members considered a report of the Office of the Police and Crime Commissioner for Merseyside (OPCCM) Interim Chief Executive which updated the Joint Audit Committee on the key risks facing the OPCCM and the action being taken to mitigate these key risks. Members were provided with details of two risks removed from the register and two added. Members were also provided with an appraisal of the ten risks currently included on the risk register. a) the risk register be noted; b) the register adequately reflected the Committee s understanding of the significant risks faced by the PCC and that mitigation actions were appropriate; and c) a verbal update on risk 8 (identification of potential and ongoing collaboration with the Merseyside Fire and Rescue Authority) be provided at the next meeting of the Joint Audit Committee on 1 st December 2016. 7. Force Risk Management Update Members considered a report of the Chief Constable which provided the Joint Audit Committee with an overview of the revised risk management arrangements within Merseyside Police and an update in relation to the Force s current risks and priorities. Members were advised of the methodology used to score and assess the current level of risk and priorities. a) the report and revised risk management arrangements in place be noted; and b) the Force s strategic risks and mitigating actions in place to address these risks be noted. Page 3 of 6 Joint Audit Committee 22 September 2016
8. Treasury Management - 2015/16 Outturn Report Members considered a report of the PCC s Chief Finance Officer which provided details of the performance of the Treasury Management Strategy during 2015/16. the report be noted. 9. Joint Audit Committee s Draft Annual Report for 2015/16 Members considered a joint report of the PCC s Chief Finance Officer and Chief Constable s Director of Resources which asked Members to consider and approve the Joint Audit Committee s annual report to the PCC and Chief Constable 2015/16. a) the Joint Audit Committee s Draft Annual Report for 2015/16 be approved; b) the action plan contained within the report (Appendix 5) also be approved; c) Members hold an annual meeting with the Professional Standards Department; d) a presentation and/or report on Victim Support Services be considered at the next meeting of the Joint Audit Committee on 1 st December 2016; e) a progress report on significant joint working arrangements and collaboration, and their risk management and governance arrangements, be considered at the next or subsequent meeting of the Joint Audit Committee; and f) a report on succession planning for the Committee be considered at the first meeting of the Joint Audit Committee next year (date to be arranged). 10. The Joint Audit Committee s Review of the PCC and Chief Constable s Annual Governance Statements for 2015/16 Members considered a report of the PCC s Chief Finance Officer and Chief Constable s Director of Resources which requested that Members consider their Annual Governance Statements, prior to approval by the Police and Crime Commissioner and the Chief Constable. Members discussed whether there was a need to include the issue of the Joint Inspection of the Multi Agency Response, as highlighted within Grant Thornton s Audit Findings Report, as a significant governance issue. In light of the fact that this issue was a relatively small part of the Forces business and the fact that an action plan had already been agreed and appropriate governance arrangements were now in place, Members agreed that there was no need to specifically include this within the Annual Governance Statements. Page 4 of 6 Joint Audit Committee 22 September 2016
a) the Joint Audit Committee Assurance Statement contained within Section 4 of each Annual Governance Statement be approved; and b) the draft Annual Governance Statements attached in Appendix 1 and 2 of the report be endorsed and Police and Crime Commissioner and the Chief Constable be recommended to adopt the statements. 11. Update Report on Progress Against the Annual Internal Audit Plan 2016/17 Members considered a report of the Head of the Shared Internal Audit Service which provided the Committee with an update of progress against the approved Internal Audit Plan for the period April to August 2016. the report be noted. 12. Annual Internal Audit Plan 2016/17 September Update Members considered a report of the Head of the Shared Internal Audit Service which provided Members with the opportunity to note changes to the 2016/17 Internal Audit Plan. the report be noted. 13. Audit Committee Champions Members provided progress reports in relation to their specific areas of Service governance, as follows: Performance and Scrutiny, and Budget - Tom P. Kelly (Chair) Sustaining Excellence - David Bradbury Victim Services - Chad Thompson Members updates be noted. 14. Options for the Procurement and Appointment of External Auditors Members considered a joint report of the OPCCM s Chief Finance Officer and Force s Director of Resources, which invited Members to discuss the options for the procurement and appointment of external auditors by the deadline of 31 st December 2017. a) the change to the arrangements for appointing external auditors for the financial year 2018/19 onwards be noted; b) the options considered in relation to the appointment of external auditors from 1 st April 2018 be noted; AND c) the principle of joining the Public Sector Audit Appointments (PSAA) Limited for the procurement of audit contracts with effect from 2018/19 be supported. Page 5 of 6 Joint Audit Committee 22 September 2016
15. Any Other Business No items were raised. 16. Date of Next Meeting The next meeting of the Joint Audit Committee is scheduled to be held on Thursday 1 December 2016, at Police Mutual, 20 Chapel Street, Liverpool 3, commencing at 2.00pm. Page 6 of 6 Joint Audit Committee 22 September 2016