The Audit and Performance Committee met on Wednesday 5th February 2020 to discuss the Metropolitan Police Service's Basic Command Unit performance, the council's financial performance, and ethical standards. The committee noted reports on these matters and requested further updates and information on various aspects of council operations.

Metropolitan Police Service Basic Command Unit Performance

The committee received a report from Chief Superintendent Helen Harper and Superintendent Mark Lawrence of the Metropolitan Police Service (MPS) detailing the performance of the Basic Command Unit (BCU) one year after its implementation in February 2019. The BCU model has reorganised 32 London boroughs into 12 units, with Westminster policing now part of the BCU covering Hammersmith & Fulham, the City of Westminster, and the Royal Borough of Kensington & Chelsea. The MPS officers explained that the policing model had been restructured into five strands: investigation, emergency response, HQ, neighbourhood, and safeguarding. They highlighted that violence in public spaces had been a key focus for adjustments to the original model and priorities during the first year.

Discussions covered crime statistics, noting that offenders were travelling into Westminster from other areas, and the transient nature of the population could lead to late reporting of offences. The MPS reported that collaborative and flexible working across BCUs was proving effective in tracing offenders, alongside crime prevention initiatives with hoteliers, airlines, and neighbouring boroughs to raise awareness, particularly among tourists. Sanctioned detection rates for robbery had improved due to more skilled detectives and an increase in arrests, with smarter partnership working also contributing to better results. Annette Acik, Interim Director of Public Protection & Licensing, commented on the City Council's neighbourhood management model, supported by dedicated Ward Officers working in a coordinated approach with local considerations and problem-solving.

The committee raised concerns about ensuring the appropriate level of officer attendance at City Council meetings, particularly concerning Children's Services and Community Safety. The MPS acknowledged that the transition to the new model had presented challenges, including the removal of a leadership layer and the sharing of strategic leadership and operational ability across three boroughs. They stressed the imperative to deliver what matters most to local people, despite the policing area extending across a wider region.

Members also commented on the number and visibility of available police officers. The MPS suggested that a mix of neighbourhood response and specialist officers would provide the most effective distribution. Police force numbers had improved due to increased government funding, with up to 50 officers joining the BCU each month. However, the MPS highlighted that training for these new officers presented a challenge. They also noted that the past year had been difficult, with events such as Extinction Rebellion impacting resources across Westminster. The committee expressed a need for greater access to police data, and it was noted that while the MPS had lost its crime analysts, abstracted data would now be available as analysts had been re-established, along with performance analysts. The committee requested a further update in nine months' time to allow for more data to be available.

Resolved:

• The report was noted.
• The Metropolitan Police Service was invited to the Committee's September meeting to provide a further report.

Grant Thornton Reports

The committee received two reports from Grant Thornton, the City Council's external auditors.

Certification of Claims and Returns Annual Report (Audit 2018/2019)

Paul Dossett, Paul Jacklin, and Laurelin Griffiths from Grant Thornton presented the Certification of Claims and Returns Annual Report. The committee noted the process followed to ensure consistency across London boroughs audited by Grant Thornton and the increased work required to meet the Financial Reporting Council's (FRC) requirements. Further details were promised for the next meeting.

Resolved: The Certification of Claims and Returns Annual Report prepared by the City Council's external auditors was noted.

Annual Audit Plan 2019/2020

Grant Thornton also presented the Annual Audit Plan for 2019/20. They advised the committee about proposed work on the audit of financial statements and the Value for Money conclusion for 2019/20. The committee heard that there would be a reduction in the materiality figure from the previous year, driven by the FRC.

Resolved: The Annual Audit Plan 2019/20 prepared by the City Council's external auditors was noted.

Maintaining High Ethical Standards

The committee received a report from Hazel Best, Bi-borough Legal Services, on the arrangements for maintaining high ethical standards throughout the Authority. This annual review was considered timely, following work by the Committee on Standards in Public Life (CSPL) and the Local Government Association's (LGA) Civility in Public Life programme. The committee queried the protection offered to whistle-blowers within the council, the number of disciplinary cases, and the rules governing officers' receipt of hospitality and gifts.

Resolved: The arrangements to maintain high ethical standards throughout Westminster City Council were noted.

Action: The reporting requirements for officers on gifts and hospitality to staff were to be reinforced.

Finance and Performance Business Plan Monitoring Report

Gerald Almeroth, Executive Director of Finance & Resources, and Rikin Tailor, Head of Corporate Finance, submitted the Period 8 Finance Report for 2019/20. This report detailed the forecast outturn for revenue and capital by Cabinet Portfolio, projected expenditure and income, and key risks and opportunities.

The committee noted a projected underspend of £0.0761m (0.4%) against the budget for previous portfolios, with the potential to increase to £1.111m if all risks and opportunities were realised. The report projected an expenditure variance of £24.252m and an income variance of £2.493m, resulting in a net underspend of £21.759m. The Housing Revenue Account (HRA) revenue forecast indicated an overall net surplus of £4.057m, representing an adverse variance of £5.736m compared to the budget. The forecast gross capital expenditure outturn for the HRA at the end of period 8 was £142.771m, a variance of £7.083m against the budget of £149.854m. Variances, risks, and opportunities within Cabinet Portfolios were being closely monitored.

Issues discussed included the Housing Services' variance figure, slippage in Capital Programmes, and ongoing measures to mitigate the persistent deficit for Westminster's schools. The committee was informed that the schools' deficit was primarily related to primary schools with declining pupil numbers, but measures were in place to support these schools while maintaining standards. Additional staff had been recruited to assist schools in developing robust deficit plans and to work with the Schools Forum and dioceses. The committee requested ongoing updates and monitoring.

Resolved: The Period 8 Monitoring Report was noted.

Quarter 3 Performance Report

Mo Rahman, Data & Intelligence Manager, and Sophie Shore, Head of Strategy & Intelligence, presented a report summarising the City Council's performance for the third quarter of the 2019/20 financial year against City for All priorities, with figures up to the end of December.

The committee discussed notable achievements, including Westminster becoming a living wage employer, and areas for improvement, such as the BAME pay gap. The committee requested additional detail and asked to receive a report at its 30th April meeting from NHS England on low immunisation rates and a more detailed report from officers on abuse against staff in public-facing roles. Several Key Performance Indicators were noted as being off-track.

Resolved: The Quarter 3 Performance Report for 2019/20 was noted.

Actions:

• Committee Members are to receive an update report at Year End on school finances/school deficits at the 30th April meeting.
• The Committee is to receive more information about short-term letting, with a breakdown of City Survey information by Ward.
• Committee Members are to receive a report from NHS England on immunisations, including the consequences of not being vaccinated and what can be done to improve vaccination rates. NHS England is to be invited to the Committee meeting on 30th April.
• The language used in the report is to be revised to reflect the change to the language around corporate parenting adopted at Full Council in January.
• The Committee is to be provided with details about the levels of subsidy, beneficiaries, and sustainability of the Strategic Investment Pot.
• Committee Members are to receive more detail on the risk of abuse to staff in public-facing roles, including where and in which Wards these incidents are concentrated.
• Committee Members are to conduct further analysis of the decline in Paid for Parking and Permits.
• The Committee is to receive more detail on the fragility of the care market, including the costs imposed on councils, closure costs, and the extent of liability for taking over a care home.
• Committee Members are to receive more detail on how the London Living Wage is being rolled out.
• The Committee is to be provided with more detail and analysis about the risks related to planning fees, in particular Planning Performance Agreements.

Treasury Management Half-Year Monitoring Report

Phil Triggs, Tri-Borough Director of Treasury & Pensions, and Mathew Dawson, Strategic Finance Manager, Treasury & Pensions, presented a mid-year review of the delivery of the Treasury Management Strategy for 2019/20, including any cases of non-compliance. The committee noted that the City Council had under-borrowed and financed capital expenditure using cash receipts. Issues discussed included the economic prospects for the United Kingdom post-Brexit and lending to other local authorities.

Resolved: The Treasury Management Half-Year Monitoring Report for 2019/20 was noted.

Action: Committee Members are to receive more information on interest rates.

Internal Audit Plan 2020/2021

David Hughes, Shared Services Director, Audit, Fraud, Risk & Insurance, and Moira Mackie, Senior Manager, Audit, Fraud, Risk & Insurance, updated the committee on progress in internal audit monitoring. The committee noted that within the audited areas, internal control systems had generally been effective, with five positive assurance reviews issued. Follow-up reviews confirmed that recommendations had been effectively implemented in two cases, with all recommendations fully addressed in one audit. A further follow-up would be undertaken on one audit where some recommendations had not yet been fully addressed.

Resolved: The Internal Audit Monitoring Report was noted.

Integrated Business Centre Update

David Hughes and Moira Mackie presented the draft Audit Plan for 2020/21. The Internal Audit Plan had been reviewed to reflect changes in Westminster's structure and to ensure that audit work addressed key risks during a period of change and financial constraints. The plan includes sufficient audit coverage to provide an overall opinion on the City Council's control framework and is flexible enough to allow for additional reviews.

Resolved: The draft Audit Plan for 2020/21 was noted.

Rikin Tailor, Head of Corporate Finance, presented a report updating the committee on progress in the Integrated Business Centre (IBC), delivered in partnership with Hampshire County Council. The committee noted that the IBC had moved beyond the stabilisation phase into 'business as usual' and that satisfaction with the IBC service had steadily increased, with 82% of staff being highly satisfied. This, coupled with a reduction in contact volumes, indicated that customers were adapting to the system and viewed the Shared Services model positively.

Resolved: The positive progress in establishing the Integrated Business Centre was noted.

Westminster Housing Service

Neil Wightman, Director of Housing, presented a report on the performance of the Westminster Housing Service. Nine months after the housing service transferred to the City Council, the report provided performance information and an overview of current service standards and improvements. Highlights included improvements in the performance of contact centres and the repairs service. The housing contact centre answered 75% of calls within 30 seconds, exceeding the corporate target of 70%. The Westminster on Wheels initiative, a mobile surgery service, was also successful, with 94% of residents surveyed expressing satisfaction.

Targets set prior to the housing service returning in-house required improvements on previous performance levels and were benchmarked against high-performing London boroughs. The Director of Housing informed the committee that all estates in Westminster would have action plans by the end of the year. The committee noted that the Director was overseeing a service improvement programme designed to integrate the Housing Management Service into the City Council and provide staff with the necessary tools and infrastructure.

Issues discussed included anti-social behaviour, criminality, voids (the number of days properties were empty between lets), repairs, residents' associations, and building relationships with residents.

Resolved: The report on the performance of the Westminster Housing Service was noted.

Work Programme and Annual Report

The committee noted the items on its Work Programme for the next meeting on 30th April 2020 and actions taken in response to issues raised at the previous meeting. It was noted that the timing of the April meeting did not coincide with financial reporting deadlines, necessitating an additional meeting in May. It was also agreed that a further update from the Metropolitan Police on BCU performance be requested for the September meeting.

Resolved: The Committee Work Programme was noted, and an additional meeting was agreed for May.