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Annual Report 2008/09
 

Annual Report 2008/09

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    Annual Report 2008/09 Annual Report 2008/09 Document Transcript

    • Staffordshire Probation Board DRAFT ANNUAL REPORT and ACCOUNTS 2008-09
    • Contents Introduction 5 Aims of the National Probation Service 5 Management Commentary Part 1: Operational and Performance Review 6 A. Enablers Leadership 6 Policy and Strategy 6 People Management 7 Partnerships and Resources 7 Processes 8 B. Results Public Protection 9 Offender Management 9 Interventions 9 Efficiency and Effectiveness 10 C. Workload and Activity Statistics Statutory Commencements 11 Caseloads 12 Reports 13 D. Board Members and Official Contact Addresses 14 2
    • Management Commentary Part 2: Financial Review & Remuneration Report Statutory Background 15 Accounts 15 Principal Activities 15 Pension Liabilities 16 Appointments 16 Public Interest 16 Management 16 Remuneration Statement 17 External Accountability 18 Post Balance Sheet Events 18 Statement of Accountable Officer’s Responsibilities 19 Statement of Internal Control 19 Independent Auditor’s Report to the Members of 22 Staffordshire Probation Board Opinion on the financial statements 24 Respective Responsibilities of Accountable Officer 24 and auditors Basis of audit opinion 25 Opinion 26 Conclusion on arrangements for securing economy, 27 efficiency and effectiveness in the use of resources Accountable Officer’s Responsibilities 27 Auditor’s Responsibilities 27 Conclusion 27 Certificate 27 3
    • Operating Cost Statement 28 Balance Sheet 29 Cash Flow Statement 30 Notes to the Accounts 31 Accounts Direction 46 4
    • Introduction Aims of the National Probation Service • Protecting the public • Reducing re-offending • The proper punishment of offenders in the community • Ensuring offenders’ awareness of the effects of crime on the victims of crime and the public • Rehabilitation of offenders In addition Staffordshire Probation Board has developed a vision for where it seeks to be in the future. This is: • To be recognised nationally and locally as a leading probation area for both quality and performance. The values of Staffordshire Probation Board are a belief in: • Treating people fairly, and with respect • Valuing and enabling diversity. • The capacity of people to change • An uncompromising stance against harm caused by crime. • Organisational excellence 5
    • Management Commentary Part 1: Operational and Performance Review A: Operational Review During the year the Area has continued to build on our success in attaining the Investors in Excellence Midlands Excellence Award for 2007/08. The Area achieved excellent feedback from the HMIP Offender Management Inspection which demonstrated continuing improvement in the work with high risk offenders, and was successful in retaining Investors in People status following a rigorous three year review. Enablers: Leadership We have continued to ensure that leaders in the Area develop a mission, vision and values which are clearly understood by the staff in the organisation, confirmed in this year’s staff survey. Senior management realignment is being designed to meet the challenges facing the service and to deliver improvements through the implementation next year of Local Delivery Units as part of the application to become trust in 2010 and which builds on the effective links with partners for the overall benefit of the service. There is a well structured approach taken towards the management of operational activities with robust procedures being used to measure operational performance with regular reviews being used to inform business improvement activity on a continuous basis. Managers have also been involved in a number of key developments at national, regional and local levels and have received external recognition for some of these e.g. health and safety award, with on going development work being supported by the Butler Trust following last year’s award. Policy and Strategy The Area has a sound approach to developing policy and strategy which has taken account of the rapid change in the national environment. The performance management framework gives the service a good understanding of its own capacities and capabilities. The key elements of the business plan are well understood by staff in the service, as confirmed by this year’s staff survey, and there are processes for ensuring that polices and strategies are delivered and impact assessed. The Board has promoted a Best Value approach to ensure value for money and the service has being developing a more market orientated approach and the commissioning and procurement 6
    • strategy adopted has continued to be approved by the Regional Offender Manager (ROM) Quarterly SLA Review meetings have been held with the ROM and his team to review performance against targets and future plans. Work on the Regional Reducing Re-offending Action Plan has continued through the Regional Project and links on appropriate pathways developed. Involvement with the Local Area Agreement developments has been strengthened, particularly through the establishment of the Reducing Re- offending Delivery Agreement with Stoke-on-Trent. People Management As the largest and best asset of the Area the organisation’s people resources have been planned, managed and improved through the senior management team receiving monthly reports on workload, staffing profile and workload projections. This has been yet another year of extremely tight financial controls being exercised by the Board and it was necessary to manage down the staff complement during the year. The available resources have been deployed primarily to meet the demand of high risk cases, whilst maintaining performance across the organisation as a whole. The Investors in People assessment nevertheless found that the organisation develops and improves its staff with a variety of training and staff development opportunities and schemes. It reported that employees appreciate the encouragement given for personal development and consider overall they are kept informed and recognised via appropriate communication channels. It is recognised that more work needs to be done to ensure that the findings from staff surveys and consultations are translated into improvement activities, with particular attention to be given to reviewing and supporting managers to acquire capabilities. Staff absence through sickness has been an issue during the previous year. The Absence Management Improvement Group, comprising management and union representatives, has met regularly to ensure that the Area attendance management policy has been implemented fairly and consistently and absence rates have dropped significantly during the year to well below the national target. Partnership and Resource The Area has continued a proactive approach to working in partnership with other key service providers as clearly delivering real benefits to the service. It is seen as having a dynamic approach the commissioning and best value agenda. We have worked hard to ensure it has a significant profile within the LAA processes in both Stoke-on-Trent and Staffordshire County; The Chief Officer is a member of the two Youth Offending Service Boards, covering 7
    • Stoke-on-Trent and Staffordshire. Both have had significant financial issues to address during the year but overall performance has again been very good. Resources have been found in conjunction with the Local Criminal Justice Board for continuing support to the Local Crime Community Sentencers Project. This is part of a community confidence building strategy and a number of events have been held in local communities including BME communities. The Area’s commitment to regional collaborative projects has continued. The Regional Project has incorporated a partnership with the ROM and prison Area Manager and has been very effective in providing a consistent regional framework for the implementation of the offender management model in the community and in the prisons (the Chief Officer has been the lead Chief on this for the region) The budget has been very successfully managed during a very difficult year with the processes deemed to have been ‘well controlled’ by the auditors. Processes The Area has defined three key processes – business development, business performance and business resources. Process are reviewed and subjected to audits in which the Area it has done well and it has implemented in a timely manner any key recommendations. There is an internal quality assurance process focusing on the quality of OASys and this is regularly reviewed by SMT. The performance management framework ensures key processes related to performance improvement are communicated and deployed throughout the organisation and this contributed to the positive OMI findings. A formal programme of Best Value reviews was introduced, focusing on the Victim Liaison Unit and, as a major undertaking, the Unpaid Work scheme and these have seen improvements in efficiency in both units. Best Value principles have been developed to support continuous improvement and significant changes have been introduced into the Unpaid Work scheme to ensure better value for money is achieved. 8
    • B. Results Probation Performance Indicators 2008-9 Indicator Indicator Description Target Actual Achieved against Code Target* The percentage of PSRs (excluding RICs for Magistrates OM 1 court’s) completed within the timescales set by the court 90% 100% The percentage of RIC PSRs for Magistrates Courts OM 2 completed within 10 working days 90% 44% To resolve 60% of breaches of community orders within 25 OM 3 working days of the relevant failure to comply 60% 60% Licence recall requests to reach NOMS Post Release Section OM 4 within 24 hours of the decision by the Offender Manager 90% 93% The percentage of cases in which initiation of breach OM 5 proceedings took place within 10 working days of the relevant 90% 94% unacceptable failure to comply The percentage of cases that reach the six month stage OM 6 without requiring breach action to be no less than70% 70% 72% The percentage of victims who are contacted within eight OM 7 weeks of an offender receiving 12 months or more for a 90% 92% serious sexual or violent offence OASys assessments completed or updated within the OM 8 appropriate timescales for all Tier 2 (where appropriate) and 90% 75% Tier 3 offenders OASys assessments completed or updated within the OM 9 appropriate timescales for all Tier 4 offenders (excluding 90% 83% PPOs) OASys assessments completed or updated within the OM 10 appropriate timescales for all PPO offenders 90% 84% OASys final reviews (terminations) completed within the OM 11 appropriate timescales for all Tier 2 (where appropriate) and 90% 67% Tier 3 offenders OASys final reviews (terminations) to be completed within the OM 12 appropriate timescales for all Tier 4 offenders (excluding 90% 66% PPOs) OASys final reviews (terminations) completed within the OM 13 appropriate timescales for all PPO offenders 90% 45% OASys assessments completed or updated within the OM 14 appropriate timescales for all prisoners subject to OM phase 2 90% 96% or 3 The percentage of parole eligible cases in which the Parole OM 15 Assessment Report was provided within the required 90% 79% timescale Medium/high/very high risk of harm offenders have a OM 16 completed Risk Management Plan within the appropriate 90% 78% timescales At least 70% of offenders in settled and suitable OM 17 accommodation at the end of their order or licence 70% 79% 9
    • Indicator Indicator Description Target Actual Achieved against Code Target* The percentage of PPOs on licence for a trigger offence that OM 18 have a drug testing condition inserted in their licence 90% 89% OM 19 The number of referrals to LSC (in the community) 939 109% OM 20 The proportion of orders and licences successfully completed 70% 67% The number of accredited sex offender programme 131% INT 1 35 completions The number of accredited domestic violence programme INT 2 completions 18 127% The number of accredited offending behaviour programme INT 3 completions (excluding sex offender and domestic violence) 280 110% The proportion of accredited programme starts that meet the INT 4 OGRS eligibility criteria where relevant 90% 93% INT 5 The number of unpaid work completions 951 114% INT 6 The number of DTTO/DRR completions 115 106% INT 7 The number of ATR completions 0 0 The number of offenders under supervision who find and INT 8 sustain employment 234 91% The percentage of offenders in employment at termination of INT 9 their order or licence 40% 49% The proportion of unpaid work offenders days which are lost INT 11 because of stand-downs on the day or notified in advance 8% 4.2% INT 12 The number of DRR Commencements 320 133% IPPF Sickness Absence 9.0 9.8 days days * Actual data is the latest available – mainly the end of February or March 2009. 10
    • C. Workload and Activity Statistics Statutory Commencements 2002-3 2003-4 2004-5 2005-6 2006-7 2007-8 2008-9 Comm. Punishment 907 950 1084 550+ 445 = 995 96+753*+100**=949 122+702*+156**=980 98+642*+149**=889 Orders Comm. Pun and Rehab 426 402 350 141+ 360 = 501 25+495*+144**=664 4+495*+189**=688 7+494*+272**=773 Orders Comm. Rehabilitation 1351 1442 1320 513 + 858 = 54+1291*+369**=1714 25+1197*+452**=1674 14+1274*+548**=1836 Orders 1371 Other Community Orders 123 179 199 81 10 1 1 Post Release Licences 857* 804 865 705 644 785 818 CJA Community Order NA NA NA 1663* 2539* 2394* 2410* CJA Suspended Sentence Orders NA NA NA 131 613** 797** 969** TOTAL 3664 3777 3818 3784 3981 4128 4317 2005/6 2006/7 *The requirements relating to CJA Community Orders is split as follows: The requirements relating to CJA Community Orders is split as follows: * CJA Comm Order Stand alone Unpaid Work 445 Stand alone Unpaid Work 753 Stand alone Supervision 858 Stand alone Supervision 1291 Supervision and Unpaid Work 360 Supervision and Unpaid Work 495 ** SSO Stand alone Unpaid Work 100 Stand alone Supervision 369
    • Supervision and Unpaid Work 144 2007/8 *The requirements relating to CJA Community Orders is split as follows: Stand alone Unpaid Work 702 Stand alone Supervision 1197 Supervision and Unpaid Work 495 ** SSO Stand alone Unpaid Work 156 Stand alone Supervision 452 Supervision and Unpaid Work 189 2008/9 *The requirements relating to CJA Community Orders is split as follows: Stand alone Unpaid Work 642 Stand alone Supervision 1274 Supervision and Unpaid Work 494 ** SSO Stand alone Unpaid Work 149 Stand alone Supervision 548 Supervision and Unpaid Work 272 12
    • Caseloads March 2003 March 2004 March 2005 March 2006 March 2007 March 2008 March 2009 CJA Community Orders NA NA NA 1343 2045 1911 1862 CJA Suspended Sentence Orders NA NA NA 118 546 783 941 Community Rehabilitation Orders 1399 1458 1429 751 213 77 22 Community Punishment Orders 532 592 601 284 89 57 57 Community Punishment & Rehabilitation Orders 419 404 414 191 47 8 6 Other Community Orders 94 140 150 74 11 2 1 Life 102 108 116 119 117 130 140 YOI Licence 255 208 203 225 184 253 196 Adult Statutory 936 958 998 998 1056 1100 1166 DCR 63 63 72 63 50 43 21 Other Licences 63 88 6 7 3 2 5 Voluntary 21 12 Nil Nil 0 0 0 Intermittent Custody NA NA NA 2 0 0 0 CJA Extended Sentence NA NA NA 7 32 61 64 CJA Public Protection NA NA NA 9 32 67 89 TOTAL 3884 4031 3989 4191 4425 4494 4570 Includes pre and post release custodial order 13
    • Reports 2001-2002 2002-3 2003-4 2004-5 2005-6 2006-7 2007-8 2008-9 Youth Court PSR/Standard 1 1 1 Nil 1 0 0 0 Delivery Magistrates Court 2793 2738 2403 2360 2460 2372 1791 1552 PSR/Standard Delivery Crown Court 1117 1121 1082 934 1035 1100 1162 1106 PSR/Standard Delivery Magistrates Court 270 442 636 656 647 868 1293 1466 SSR/Fast Delivery/Oral Crown Court SSR/Fast 23 40 32 42 40 38 54 83 Delivery/Oral 14
    • D. Names of Board Members & Official Contact Address Appointed/ Resigned Re appointed Mr Robert Mandley Chief Officer 01/12/2003 n/a Mr Roger Thayne Chair 01/04/2007 n/a Board Member 01/04/2007 n/a Ms Ann Holmes Mr Alan James Board Member 01/04/2007 n/a Mr Tony Johnson Board Member 01/04/2007 n/a Board Member 10/09/2006 n/a Mr Michael Kemp Board Member 01/04/2007 n/a Mr Graham Morley Board Member 01/04/2007 n/a Mr John Ryan Board Member 31/01/2006 26/09/2009 Mr Kevin Smith Board Member 01/01/2007 n/a Mr Graham Tritton Official Contact Address for Members of Staffordshire Probation Board Staffordshire Probation Board Staffordshire Probation Area Head Office University Court Staffordshire Technology Park Beaconside STAFFORD Staffordshire ST18 0GE Telephone: 01785 223416 Fax: 01785 223108 e-mail: rob.mandley@staffordshire.probation.gsi.gov.uk
    • Management Commentary Part 2: Financial Review & Remuneration Report 16
    • Statutory Background The National Probation Service for England and Wales was established by the Criminal Justice and Court Services Act 2000 (the Act). Local probation boards were established in accordance with the police areas to implement the functions conferred on them through the Act. Each Board is a corporate body, which came into existence on 1 April 2001. Accounts Each Board is required under Schedule 1, paragraph 16(1) of the Act to make a report to the Secretary of State on the performance of its functions during each financial year, and prepare in respect of each financial year of the Board a statement of accounts. Under Schedule 1, paragraph 16(2) of the Act, the Secretary of State has given direction as to: • The information to be given in the report and the form in which it is to be given, • The time by which the report is to be made, and • The form and manner in which the report is to be published. Principal Activities Staffordshire Probation Board covers the Staffordshire police area, as defined in Schedule 1 of the Police Act 1996, serving a population of approximately 1,047,400. During the year, the Board employed some 508 staff averaging 407 full time equivalents over the year (396 as at 31 March 2009), who worked from 12 buildings and 3 approved premises across the area. In addition there were 34 staff on secondments with other organisations Each Board is to initially provide assistance to the courts in determining the appropriate sentences to pass, and making other decisions in respect of persons charged with or convicted of offences, and to assist in the supervision and rehabilitation of such persons. The Chief Officer (CO) is a statutory office holder appointed by the Secretary of State. The CO is the Accountable Officer for the Board and is accountable to the National Director in the position as the Principal Accountable Officer (PAO) for National Offender Management within the Ministry of Justice. The PAO, in turn, is accountable to the Accounting Officer of the Ministry of Justice, who is directly accountable to Parliament for safeguarding public funds. Pension Liabilities 17
    • The pension liabilities are set out in note 3 to the Accounts. The pension scheme is administered by Staffordshire County Council. There were changes to the employees' contribution rates from 1 April 2008 and following a full triennial valuation of the scheme was undertaken during 2007/08 the employer’s rate was increased to 18.4%. Due to the present economic climate and the effect on the stock market the deficit as at 31 March 2009 has been estimated at £16.1 million. (£7.3 million as at 31 March 2008). The next full triennial valuation of the scheme will take place during 20010/11. Appointments The Chair, and other members of the Board apart from the Chief Officer were all appointed by the Secretary of State in line with the Commissioner for Public Appointments’ “Guidance on Appointments to Public Bodies”. The emoluments of these persons are paid for through Ministry of Justice funds. The Chief Officer was appointed by the Secretary of State after a round of assessment and competitive interviews. The Lord Chancellor appoints a high court judge to the Board from among the judges of the Crown Court. The emoluments of this appointee are paid for from the Lord Chancellor's Department. This position is vacant at present Employees of the Board are members of the Staffordshire County Council Local Government Pension Scheme. Details of pension arrangements are set out in Note 1 to the Accounts. Public Interest The Board operates a policy of equal opportunities, regardless of gender, race, disability, or sexuality. The Board observes the principles of the “Better Payment Code of Practice” and aims to pay all approved invoices within 30 days. For the year undisputed invoices were paid within the 30 days in 99% of cases, which represented 99% of the value of total invoices, an improvement on last year. Management The strategic management throughout the year was carried out by the Board, which consisted of the members listed at Section D of part 1 of this report: All Home Office appointed Board members receive non-pensionable remuneration of £15.40 per hour from 1 April 2004, with the exceptions of the Chief Officer and Chair. Staffordshire Probation Service also pays a travel allowance and other relevant expenses incurred by Board members. 18
    • Remuneration Statement Remuneration of the Board Members is set out in the table below Name Role 2008 – 09 2007 – 08 Salary Benefits in Salary Benefits in £000 Kind (to £000 Kind (to nearest £100) nearest £100) Rob Mandley Chief Officer 75-80 None 75-80 None Roger Thayne Chair 15-20 None 15-20 N/A Ann Holmes Board Member 0-5 None 0-5 N/A Alan James Board Member 5-10 None 5-10 None Tony Johnson Board Member 0-5 None 0-5 None Mike Kemp Board Member 0-5 None 0-5 None Deborah Leary Board Member N/A None 0-5 N/A Graham Morley Board Member 0-5 None 0-5 N/A John Ryan Board Member 0-5 None 0-5 N/A Kevin Smith Board Member 0-5 None 0-5 None Graham Tritton Board Member 0-5 None 5-10 None Pension Benefits of the Board members are set out in the table below. Name Real Total CETV CETV Real Employer Increase accrued at at Increase Contribution in pension 31.03.09 31.03.09 in CETV to Partnership Pension at aged 65 Pension account at age 65 at 31.03.09 (to nearest £100) £,000 £,000 £,000 £,000 £,000 £ Rob Mandley 0 - 2.5 32.5 - 35 550 601 24 13,500 plus lump plus lump sum of sum of 2.5 - 5 97.5- 100 Currently 2008 data displayed awaiting 2009 information due 5 May 2009 19
    • External Accountability Under paragraphs 16-17 of Schedule 1 of the Criminal Justice and Court Services Act 2000, the Board is required to send to the Secretary of State a report on the discharge of its functions during the year and its audited accounts. The Annual Report and Accounts will comply with the specific accounts directions issued by the Secretary of State with the consent of HM Treasury. The Audit Commission has appointed PriceWaterhouseCoopers as the external auditor for the Staffordshire Probation Board. The Certificate and Report are included at pages 24 to 27. Post Balance Sheet Events The Area plan to submit a joint application with West Midlands Probation Area to become a Probation Trust from April 2010 R N Mandley R T Simpson Chief Officer and Accountable Officer Director of Business Resources For the Board and Treasurer to the Board June 2009 June 2009 20
    • Statement of Accountable Officer's Responsibilities Under Schedule 1, paragraph 17(1) (b) of the Criminal Justice and Court Services Act 2000, local probation boards must prepare a statement of accounts in respect of each financial year, in conformity with an Accounts Direction issued by the Secretary of State, reproduced on page 46. The accounts are prepared on an accruals basis and must give a true and fair view of the affairs of the Board at the year-end, the net operating costs, resources applied to objectives, recognised gains and losses, and cash flows for the financial year. In preparing the accounts, the Accountable Officer is required to comply with the Probation Service Resource Accounting Manual, which is an adaptation of Treasury guidance and in particular to: • Observe the Accounts Direction issued by the Secretary of State, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis; • Make judgements and estimates on a reasonable basis; • State whether applicable accounting standards have been followed, and disclose and explain any material departures in the accounts; • Prepare the accounts on a going concern basis, unless it is inappropriate to presume that the Probation Board will continue in operation. The Secretary of State has appointed the Chief Officer as Accountable Officer of the Board. The responsibilities of an Accountable Officer, including responsibility for the propriety and regularity of the public finances for which the Accountable Officer is answerable, for the keeping of proper records, and for safeguarding the Board's assets, are set out in the Accountable Officer’s Memorandum, issued by the Secretary of State. Statement on Internal Control Scope and Responsibility As Accountable Officer, I have responsibility for maintaining a sound system of internal control that supports the achievement of Board’s policies, aims and objectives, whilst safeguarding the public funds and departmental assets for which I am personally responsible, in accordance with the responsibilities assigned to me in the Financial Memorandum and Government Accounting. All Board members are appointed by the Secretary of State and are accountable through the Chair of the Board for assurance of proper governance and control of public funds. Until 31 March 2009 I reported to the Director of Probation at the 21
    • Ministry Of Justice separately on these matters, since then through the Director/Regional Offender Manager. Through these separate reporting arrangements for the Board and Chief Officer to the Ministry Of Justice a control over the activities and use of public funds by the organisation is ensured. Within the Probation West of Midlands Region a number of regional projects have operated over the financial year. In order to operate effective independent governance over these projects a Chief Officer from another Area (which is not the host Area) is appointed as the Lead for the project. During 2008/09 I had responsibility as lead Chief for the Regional Training Consortium. From 1 April 2006 Government funding for the Area has been delegated to the Regional Offender Manager. In order to support this arrangement a service level agreement for 2008/09 has been put in place. These are the subject of quarterly review meetings covering both financial and performance results. The Purpose of the System of Internal Control The system of internal control is designed to manage risk to a reasonable level rather than eliminate the risk of failure to achieve policies, aims, and objectives: it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the principal risks to achieve Staffordshire Probation Board’s policies, aims and objectives, to evaluate the likelihood of those risk being realised and impact should they be realised and to manage them efficiently, effectively and economically. The system of internal control has been in place in Staffordshire Probation Area for the year ended 31 March 2009 and up to the date of approval of the annual report and accounts and accords with Treasury guidance. This process will be reviewed again during 2009/10 to ensure their robustness is maintained and that the processes the Board has agreed are established and fully implemented. Capacity to Handle Risk The Board includes the topic of internal control in its monthly Board meeting agenda and is also considered on a regular basis during the year by the senior management team. There has been a full risk and control assessment before reporting on the year ending 31 March 2009. Risk management has been incorporated fully into the corporate planning and decision making processes of the management team and Board. There has also been a self assessment of risk management by the Area using a national template. A review by Internal Audit on Risk Management by the Area was classified as “Well Controlled" and did not make any recommendations The Board receives periodic reports along with an annual report from the Chairman of the Audit Committee and requires regular reports from managers on 22
    • the steps that they are taking to manage risks in their areas of responsibility including progress reports on key projects. There have been risk management meetings during which the Board's objectives and risks were identified and a control strategy determined for each of the significant risks. The Board has approved a risk management policy document and this was reviewed and rewritten during spring of 2009 to ensure it is up to date and relevant. The Area has developed an ethos within the organisation for early identification of potential risks to achieving business objectives along with an escalation procedure to the senior management team as soon as practicable. Considerable time has been spent by the Board to ensure that proper control and suitable regulations had been put in place along with developing a culture of corporate governance. Part of a formal Board meeting was to identify and address the risks of not meeting the objectives set in the annual plan. The Board also has an anti fraud strategy policy which was reviewed at the full Board in the spring of 2009 and rewritten along with a supporting anti fraud plan. In the spring of 2009 the whistle blowing policy was reviewed by the full Board. The Board has a separate internal audit function provided by National Probation Service (NPS) Internal Audit from 1 April 2002. Internal Audit operated to standards defined by the Government Internal Audit Standards (GIAS). They submitted regular reports, which included an independent opinion on the adequacy and effectiveness of the Probation Area’s system of internal control together with recommendations for improvement. The main reviews undertaken by internal audit in 2007/08 included: Key Financial Systems, Review of local unit costing Review of risk management Review of implementation of IT security policies within the organisation Review of Approved Premises Review in of staff attendance record systems Review in spring of 2008 of staff time recording systems An organisation-wide business risk register has also been maintained. A senior manager was appointed in 2002/3 as a risk management champion to ensure that Staffordshire Area implements the ethos of risk management throughout the organisation and to ensure it has high priority at management meetings. This continues to be actively managed by the senior manager. During the year both Board Members and senior staff attended risk management update workshops organised by NOMS. Other sources of assurance as to value for money and effectiveness have included:- 23
    • • The results of the Risk of harm Inspection conducted early last year along with the OMI inspection in September 2008 showing the improvements achieved in standards of performance. • Board Performance reports on key target areas highlighting actual improvement in performance during 2008/09 and also sharing the IPPF results of the Area. • Implementation agreed phases of a local estates strategy in agreement with NOMS • Further developed current performance measures to include risk indicators and share developments on both a regional and national basis. • Continued to monitor the current risk log at full Board meetings. • The full Board involvement in managing the high financial risk of balancing the budget • Continued to improve on the timely payment of supplier invoices exceeding the standard met in 2006/7 when we gained the Better Payment Award. • Re-award for achieving the Investors in People standard.(IIP) • Receipt of the International Health & Safety Award for continuous improvement Risk and Control Framework The key elements of the Board risk management and control strategy start with preparation of the business plan for the coming year and identification of the then known risk to achieving the business objectives. These business risks are assessed on both likelihood of occurrence and impact using the Home Office scoring matrix agreed with the Board during the setting of the annual business plan. The Board conducted a review of Risk Management during 2008/09 clearly defining and encouraging the proactive management of risk. Consideration was also to be given to costing different solutions to risk management. Counter measures and plans are prepared and implemented to reduce both the risk and impact. These risks are maintained on a risk register and used as a tool by senior management to ensure business objectives are met. The register is updated on a regular basis and the current top ten presented at all the Board meetings. The operational risks are also regularly reviewed throughout the organisation. 24
    • Review of Effectiveness As Accountable Officer, I also have responsibility for reviewing the effectiveness of the system of internal control. My review of the effectiveness of the system of internal control is informed by the work of the internal auditors and the executive managers within the Probation Area who have responsibility for the development and maintenance of the internal control framework and comments made by the external auditors in their management letter and other reports. I have been advised on the implications of the result of my review of the effectiveness of the system of internal control by the Board, the Audit Committee, and a plan to address weaknesses and ensure continuous improvements of the system is in place. In addition additional assurance has been obtained from • The continued review of the risk log during the year by both the risk owner and Board • The review of risk management and anti fraud policy including the input from Internal Audit • The implementation of the majority of audit recommendations confirmed by follow-up reports • The increased involvement of Board Members in corporate governance of all organisation activities • The risk management ethos underlying all probation business along with the actions to minimise risk that is embedded in the planning and monitoring processes. • The Audit Committee’s watching brief on the maintenance and assessment of the system of internal control by examining the full internal audit reports and ensuring that recommendations are implemented and monitored in a log. • The annual report from Internal Audit highlighting the continuous improvements on control in the Area particularly gaining a ” well controlled” conclusion on financial management along with a significant number of other audits. • Internal initial review of information security along with Internal audit report • Self assessment of Approved Premises • Results from the Risk of Harm Area Assessment and Inspection • The work done in support of Probation Trust application 25
    • • The results of the Best Value reviews on Unpaid Work and Victim liaison teams I have therefore concluded that an adequate system of internal control was in place for the financial year 2008/09 and that risk management will continue to be a major item of management throughout the organisation at all levels. R N Mandley Chief Officer and Accountable Officer for the Board June 2009 26
    • Certificate and Report of the Appointed External Auditor Auditor's Report to the Staffordshire Probation Board Independent Auditors’ Report to the Members of Staffordshire Probation Board Opinion on the Financial Statements We have audited the financial statements of Staffordshire Probation Board for the year ended 31 March 2008 under the Audit Commission Act 1998. The financial statements comprise the Operating Cost Statement, the Balance Sheet, the Cash- flow Statement, the Statement of Total Recognised Gains and Losses and the related notes. These financial statements have been prepared under the accounting policies set out within them. We have also audited the information in the Remuneration Report that is described as having been audited. This report is made solely to the Members of the Staffordshire Probation Board in accordance with Part II of the Audit Commission Act 1998 and for no other purpose, as set out in paragraph 36 of the Statement of Responsibilities of Auditors and of Audited Bodies prepared by the Audit Commission. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Respective Responsibilities of the Accountable Officer and Auditors The Accountable Officer’s responsibilities for preparing the financial statements in accordance with the Criminal Justice and Court Services Act 2000 and directions made thereunder by the Secretary of State and for ensuring the regularity of financial transactions are set out in the Statement of Accountable Officer’s Responsibilities. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view in accordance with the accounting policies directed by the Criminal Justice and Court Services Act 2000 and directions made thereunder by the Secretary of State. We report whether the financial statements and the part of the Remuneration Report to be audited has been properly prepared in accordance with the Criminal Justice and Court Services Act 2000 and directions made thereunder by the Secretary of State. We report to you whether, in our opinion, the information which comprises the financial review, included in the Annual 27
    • Report, is consistent with the financial statements. We also report whether in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. We review whether the Accountable Officer’s statement on internal control reflects the Probation Board’s compliance with HM Treasury’s guidance on the Statement on Internal Control dated 22 December 2000. We report if it does not meet the requirements specified by HM Treasury or if the statement is misleading or inconsistent with other information we are aware of from our audit of the financial statements. We are not required to consider, nor have we considered, whether the Accountable Officer’s statement on internal control covers all risks and controls. We are also not required to form an opinion on the effectiveness of the Probation Board’s corporate governance procedures or its risk and control procedures. Our review was not performed for any purpose connected with any specific transaction and should not be relied upon for any such purpose. We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial statements. This other information comprises only the Introduction, the unaudited part of the Remunerations Report, the Statement of Accountable Officer’s Responsibilities and the remaining elements of the Operating and Financial Review. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information. Basis of Audit Opinion We conducted our audit in accordance with the Audit Commission Act 1998, the Code of Audit Practice issued by the Audit Commission and International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part of the Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgments made by the Accountable Officer in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Probation Board’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that: • the financial statements are free from material misstatements, whether caused by fraud or other irregularity or error, 28
    • • the financial statements and the part of the Remuneration Report to be audited are properly prepared, and • in all respects material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements and the part of the Remuneration Report to be audited. Opinion In our opinion: • the financial statements give a true and fair view, in accordance with the Criminal Justice and Court Services Act 2000 and directions made thereunder by the Secretary of State, of the state of the Probation Board’s affairs as at 31 March 2008 and of its net operating costs, recognised gains and losses and cash flows for the year then ended; • the financial statements and the part of the Remuneration Report to be audited has been properly prepared in accordance with the accounting policies directed by the Criminal Justice and Court Services Act 2000 and directions made thereunder by the Secretary of State; and • in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them; and • information which comprises the financial review, including the Annual Report is consistent with the financial statements PriceWaterhouseCoopers LLP Donington Court Pegasus Business Park Castle Donington East Midlands DE74 2UZ Date 29
    • Conclusion on Arrangements for Securing Economy, Efficiency and Effectiveness in the Use of Resources Accountable Officer’s Responsibilities The Accountable Officer is responsible for putting in place proper arrangements to secure economy, efficiency and effectiveness in the Probation Board’s use of resources, to ensure proper stewardship and governance, and to regularly review the adequacy and effectiveness of these arrangements. Auditor’s Responsibilities We are required by the Audit Commission Act 1998 to be satisfied that proper arrangements have been made by the probation board for securing economy, efficiency and effectiveness in its use of resources. The Code of Audit Practice issued by the Audit Commission requires us to report to you our conclusion in relation to proper arrangements, having regard to the criteria for probation boards specified by the Audit Commission. We report if significant matters have come to our attention which prevent us from concluding that the probation board has made such proper arrangements. We are not required to consider, nor have we considered, whether all aspects of the probation board’s arrangements for securing economy, efficiency and effectiveness in its use of resources are operating effectively. Conclusion We have undertaken our audit in accordance with the Code of Audit Practice and we are satisfied that, having regard to the criteria for probation boards specified by the Audit Commission and published in December 2006, in all significant respects, Staffordshire Probation Board made proper arrangements to secure economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2008. Certificate We certify that we have completed the audit of accounts in accordance with the requirements of the Audit Commission Act 1998 and the Code of Audit Practice issued by the Audit Commission. PriceWaterhouseCoopers LLP Donington Court Pegasus Business Park Castle Donington East Midlands DE74 2UZ 30
    • Dated June 2008 31