Devon and Cornwall Police Authority

Item 7

Devon and Cornwall Police Authority

Strategic Planning and Co-ordination Committee

7 November 2012

Open for the purposes of FOI

Report of the Chairman

The Legacy Report of The Police Authority

Recommendations:
That Members approve the report subject to the addition of the remaining Working Group reports following the final meetings of these groups

1. Purpose

During the final committee cycle of the Police authority individual committees have had the opportunity to reflect upon their major achievements, on-going risks and decisions for the future. This report contains each of the individual committee reports (Appendix 1 ) and draws together the main items that have been debated and decided for the full Authority meeting.

2. Major Achievements

The achievements are addressed under the main functions of the whole

Authorityand not necessarilythe committee structure.

2.1 Force Transformation and Change

The Authority and Force showed foresight in the commencement of a transformation programme prior to the announcement of the comprehensive spending review. The programme was designed to introduce customer facing services and streamline back-office services, through the process of individual reviews. Allied to this was the replacement of major IT systems which in some cases were near to the end of their useful lives. This has been a major on-going project through a period of significant financial restraint. The Strategic Planning and Co-ordination Committee (SPCC) has carried out the formal scrutiny role around these changes and reported to the full Authority any strategic matters arising.

2.2 Governance

Governance lies at the heart of the Authority’s functions and this was the driving force behind the comprehensive restructuring of all the committees and working groups. From this platform a series of cross cutting themes was introduced one of which was risk management. This has been developed through a comprehensive set of risk registers for all committees in order to provide the assurances necessary for the annual governance statement and the financial statements. This approach has enabled a more formalised mapping of assurance to take place and enabled a risk based approach to be undertaken when setting the annual internal audit strategy and audit plan. Some of the other major achievements are the improvements to the effectiveness of internal audit through questionnaires and customer feedback as well as a full review of statutory duties.

2.3 Performance Scrutiny

In December 2010, anorganisational review led to the Police Authority moving to a matrix-management approach for discharging its duties. The Authority agreed five cross-cutting themes (performance, value for money, sustainability & environmental responsibility, equality & diversity and risk management) to be embedded into the work of the Authority. Each of the Authority’s committees was responsible for scrutinising the business against these themes and to complement this approach, five Networks were established.

The Performance Network Group (PNG) superseded the former Performance Management Committee, which was phased out in the review of committees.

The PNG comprised five lead Members, representing the key committees, supported by an officer of the Authority. This ensured effective scrutiny across the Committees and an improved feedback process, embedding performance as a core aspect across the whole PA. Meetings of the PNG were held quarterly to scrutinise strategic Force performance. The Deputy Chief Constable, accompanied by the Force’s Head of Performance and Analysis, was held to account on behalf of the Force. The PNG also took a leading role in developing annual and mid-term performance targets for inclusion in the Policing Plan, linked to feedback from the local community consultations

2.4 The Financial Context

Supported by the Resources Committee The Authority has had to deliver the economic and effective use of resources to support the delivery of a high quality police service to the standards set out in the Authority’s strategic plan. This involves taking a longer term approach to financial planning to ensure that current financial decisions are sustainable into the future. The Authority has not been reticent in making difficult financial decisions and in 2003/2004 the decision to increase the band D council tax by 47% was taken to ensure that future policing services were sustainable .The benefit of this decision was instrumental in softening the impact of enforced cuts due to the 2010 Comprehensive Spending Review. Equally important is the regular financial monitoring of the Treasury Management Strategy.

The major decisions made over recent years, many after Resource Committee consideration,are:

• Analysing the impacts of the one year council tax freeze grant in 2012/13 on future levels of funding including the development of four council tax and precept options which the Authority considered and made a decision upon.

• The development of a five year estates strategy.
• In support of the cross cutting themes the finance function have developed a joint value for money strategy.

2.5 The People Perspective

People resources are by far the largest resource the Authority has to manage. This overall management has been carried out through the Human Resources Committee that ensures decision-making processes deliver corporate outcomes in accordance with the Authority’s strategic plan. Specifically this committee has provided oversight and scrutiny regarding all matters pertaining to people management and learning and development within the police service both locally and nationally. This role has also included governance of the human resources policies adopted by the Authority.

Many of the decisions affecting staff and Police Officers have been referred to the Authority due to their magnitude and strategic significance. Notable examples here are:

• In 2005/6 an attempt to undertake a Job Evaluation (JE) exercise within the force failed. The current and re-formed HR Committee, SPCC and the Authority have played a fundamental role in overseeing the investigation and review of how the failure occurred, considering lessons learned and overseeing and providing governance of the new JE process currently being undertaken.
• Provision oversight and guidance to the force during a particularly difficult financial period which has required, for example, utilisation of the Regulation A19 process (required retirement of officers after 30 years of service) and large scale police staff redundancies. To date no significant legal challenges have succeeded, which is testament to strong governance by the committees,SPCC and the Authority during the austerity period.

2.6Regional Collaboration

Prior to 2010, there was no recognised model for collaboration in policing in the south west. The Devon and Cornwall Police Authority was instrumental in establishing the South West Police Authorities Joint Committee (SWPAJC) the governance and accountability structure for collaborative working in Devon & Cornwall, Avon & Somerset, Dorset, Gloucestershire and Wiltshire. The SWPAJC comprised two Members from each constituent police authority, supported by chief executives and treasurers.

The SWPAJC has met on a quarterly basis and the Police Authority has had a key role in its many achievements, including:

• The Police Authority made a major contribution to the success of the West Coast Forensics Collaboration.
• In April 2012, the establishment of the South West Police Procurement Department responsible for purchasing for the four Forces (Avon & Somerset Police were unable to joint this arrangement due to its contractual ties with Southwest One) where the collaborative value of contract is greater than £40,000. The total savings over three years are projected to be in excess of £2.4m.

2.7 Cross Cutting Themes

The new committee structure gave prominence to the cross cutting themes of Risk Management, Equality and Diversity, Value for Money,Performance and Environmental Sustainability. The Authority has been instrumental in agreeing strategies in each of these areas

2.8Transition

In July 2011 the Authority set up a Transition Board to oversee the management of the transfer of governance, staff systems, information and assets to the Police and Crime Commissioner. The Authority has received regular reports from the Chief Executive regarding progress of the project.

This project ensures the positive legacy is maintained for the future.

3. Assurance, Risks and Future Decisions

A tremendous amount of hard work has gone into the development and improvement of the Authority by its members. There is still more work to do to complete the programme set in motion. Some of the key decisions for the Commissioner over the next eighteen months are:

• The proposal and agreement to the precept in order to keep policing sustainable in Devon and Cornwall.
• The appointment of a new Chief Constable and Deputy.
• The delivery of the remainder of the savings programme commenced in April 2011.
• The support and close scrutiny of the change programme to ensure that it delivers the outcomes required.
• The possible recruitment of new police officers in 2013/14.
• The implementation of the Job Evaluation process.
• A successful transfer of assets before April 2014 to the two new corporate entities.

Some of the major risks faced by the PCC based upon the legacy of the Authority are centred around these decisions. Key risks for the PCC are:

• Financial – Budgets being cut or reduced by central government. Alternative funding cannot be secured.
• Change Programmes - Scrutiny of major change programmes in the Force by the Authority needs to take place.
• Communications – Is the Authority’s communication framework, covering both internal and external communications, sufficiently effective?
• ICT systems – Is the infrastructure adequate to support the Authority’s and the Force’s service delivery and sufficiently robust to prevent loss of service, critical delays and loss of information and data?
• Leadership and Direction– Leadership of the Authority needs to be assured up to the changeover to the OPCC.

A full report on risks, including all key risks, is on the agenda of the Police Authority meeting (Item 10 – Police Authority Corporate Risk Register).

The PCC will need to receive assurances that performance is on target, that the change programme is being properly delivered,that the use of financial resources are being reduced in line with grant loss, and that the JE project is able to deliver its objectives.

4. Outstanding Actions and the work of the Joint Audit Committee (JAC)

The PCC will inherit 8 months of accounts from the Police Authority. The JAC will need to ensure that Governance Statements accurately represent the position of the Authority at 22nd November 2012 and that all queries on Authority transactions are addressed in order to gain a clean audit certificate for the year.

5. Closing Comments

The Authority has prided itself on providing good governance and strong directional leadership. Through this approach it leaves a strong financial legacy of a sustainable Council Tax base,a change programme with the potential to deliver real service improvements and a documented legacy in these reports in order to provide a smooth handover to the PCC.

Mike Bull

Police Authority Chairman

THE FOLLOWING REPORTS ARE ATTACHED
COMMITTEE REPORTS
1. Strategic Planning and Co-ordination Committee
2. Corporate Governance Committee
3. Resources Committee
4. Human Resources
5. Protective Services Committee
6. Local Policing and Confidence Committee
7. Professional Standards Committee
CROSS-CUTTING THEMES AND WORKING GROUPS
8. Performance Management
9. Environmental Issues and Sustainability
10. Value For Money
11. Collaboration
12. Equality and Diversity
13. Protecting Vulnerable People
14. Independent Custody Visiting Scheme

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DEVON AND CORNWALL POLICE AUTHORITY

STRATEGIC PLANNING AND CO-ORDINATION COMMITTEE
MAJOR ACHIEVEMENTS

• Regular monitoring of the Devon and Cornwall Police 2012 Change Programme including reporting mechanisms and force numbers.
• Authorisation of the duty management contract.
• Regular updates and decision making in relation to the Job Evaluation project.

• Agreement to the basis for Youth Crime & Substance Misuse Prevention Funding.
• received reports from each of the cross-cutting theme leads identifying issues arising from their respective committees such that a report of every cross-cutting theme within every committee is reviewed.
• Increased the number of SPCC meetings to provide strategic oversight of the transition programme.
• Agreement to the set up and terms of reference for the PCC Transition Board

• Considered Chief Officer Performance and Development Reviews and the review process in relation to the Chief Constable and Deputy Chief Constable.
• Appointment of Temporary Chief Constable and Deputy
• Determine the use of Regulation A19.
• Considering and delegating the terms and policy of voluntary redundancy.
• The consideration of the reductions of staff in the civilian crime investigation function.
• Approval to the process of authorising redundancy.
• Approval to various schemes of property rationalisation and management.
• The development of an SPCC risk register.

ASSURANCE, FUTURE RISK WORK AND DECISIONS
Incorporated into the Police Authority Legacy Report
OUTSTANDING ACTIONS FOR JOINT AUDIT COMMITTEE
Incorporated into the Police Authority Legacy Report
SPCC - LIST OF KEY DOCUMENTS
There are no documents which are specific to SPCC

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DEVON AND CORNWALL POLICE AUTHORITY

CORPORATE GOVERNANCE COMMITTEE
MAJOR ACHIEVEMENTS
The remit of the Corporate Governance Committee has enabled it to provide a much wider overview of the Authority’s activities than those traditionally associated with an audit committee. At the heart of the committee’s approach has been the development of a comprehensive set of risk registers for all committees in order to provide the assurances necessary for the annual governance statement and the financial statements. This approach has enabled a more formalised mapping of assurance to take place and enabled a risk based approach to be undertaken when setting the annual internal audit strategy and audit plan.
Some of the major achievements of this committee are as follows:

• Assisting with the re-structuring of all the authority’s committees.
• Development of joint protocols for internal and external audit.
• An assurance and risk based internal audit strategy that follows the four year format of the Medium Term Financial Strategy.
• Improvements to the quality of the annual governance statement through a more rigorous referencing of the sources of assurance.
• Active governance through the reporting of other committee chairs to corporate

Governance.

• Agreement to a new Risk Management Framework.
• Scrutiny of the force risk register.
• Maintain overview of HMIC reports and delegation follow up as appropriate.
• A full review of statutory duties.
• Oversight of the Transition Board in preparation for the PCC.
• Introduction of committee workplans.
• Raising the overall awareness of risk across the authority and testing the embededness through risk maturity surveys.
• The introduction of cross cutting groups to tackle major themes such as value for money, risk and performance, and equality and diversity and human rights.
• Working to improve the effectiveness of internal audit through questionnaires and customer feedback.
• Voluntary additional scrutiny of the annual statement of accounts.
• A retendered insurance contract with significant annual savings.
• Oversight of the complaints procedure for the Authority.
• Introduction of a constitution for the Authority.

ASSURANCE, FUTURE RISK WORK AND DECISIONS
The committee has been keen to ensure that there is a continuity of governance for the PCC from the 22nd November 2012. A major element of this has been the creation of a Joint Audit Committee (JAC) that is in a position to accept the positive legacy of the assurance, risk and audit frameworks. However a series of risks exist that require management and further work to be undertaken by the JAC as the successor committee.
The main relevant risks identified by this committee around corporate governance on handover are:

• That all areas currently undertaken by the committee are handed over in total and that there are no gaps.
• Ensuring that the new roles and responsibilities are understood by the Office of the Police and Crime Commissioner (OPCC).
• Ensure performance frameworks are in place.
• Adequate scrutiny processes exist to cover all high risk impact force activities.
• Force arrangements for risk management and assurance continue to be scrutinised and developed.
• The risks around partnerships and joint working are recognised and understood.
• Governance structures around partnerships are working properly.
• The gaps left by the abolition of national centres of excellence are recognised and suitable local arrangements are made.
• The trail of recommendations relating to internal audit reports are monitored.
• Cross cutting themes do not receive adequate attention.
• The risks posed by temporary leadership of the Force.
• Maintaining an audit trail of decision making under the PCC.
• The need for greater scrutiny through the Force Change Programme Board.

OUTSTANDING ACTIONS FOR JOINT AUDIT COMMITTEE
In order to mitigate some of the risks the committee has completed its current workplan with no outstanding actions. The following activities need to be given consideration by the JAC in developing their forward workplan:

• The development of business continuity processes for the OPCC.
• All recommendations made by HMIC and internal audit are monitored and delivered.
• That adequate governance structures are set up in the force to match the delegations given by the PCC.
• All new and existing statutory duties are defined and policies and actions kept up to date.
• Updates of current legal issues are considered by the committee and are passed over to the JAC.
• Force assurance mapping to be in place.
• A new audit strategy is agreed.
• The impact of the loss of members on current force boards is understood and replaced by adequate scrutiny.
• A review of the force learning database needs to be undertaken.
• Involvement in the development of the OPCC governance framework, especially those areas relating to decision making.

OUTSTANDING ACTIONS FOR JOINT AUDIT COMMITTEE (Cont.)

• Workplan actions
• Quality of data and information
• National Fraud Initiative follow up

LIST OF KEY DOCUMENTS
The following documents provide background to the decisions made and the risks identified:

• Internal audit and external audit protocol in place.
• Internal audit plan.
• External audit plan.
• Treasury management policy.
• Corporate governance risk register.
• Assurance mapping update.
• Annual governance statement.
• Annual assurance statement.
• Statement of accounts.
• Insurance tender.
• Freedom of information policy.
• Data protection policy.
• Business continuity.
• Review of the effectiveness of internal audit.
• Risk Register for Corporate Governance.
• Force Scorecard.
• Force risk register.
• Police Authority organisational risk register.
• Memorandum of Understanding around Fraud

The committee has enjoyed a positive working relationship with the force which has developed with the new committee structure. Notable areas where joint working has improved the ultimate result have been the development of risk registers and the use of covalent as a common system for the registers. This type of joint working will provide a firm foundation for future development.

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