Commissioner of Police of the Metropolis. Statement of Accounts 2017/18

Transcription

1 Commissioner of Police of the Metropolis Statement of Accounts 2017/18

2 How to Contact Us We welcome your feedback. If you have any comments about this Statement of Accounts they should be sent to: Corporate Finance - Finance Services Metropolitan Police Service 9th Floor West Empress State Building Lillie Road London SW6 1TR Consultation Opportunities The Mayor s Office for Policing and Crime (MOPAC) holds regular meetings about policing with people who live and work in London. Details of these can be found on MOPAC Internet site at Copies The Audited Statement of Accounts 2017/18 will be published as an internet document. Please consider the environment before printing the document. Internet Addresses: Mayor s Office for Policing and Crime Metropolitan Police @metpolice_uk Commissioner of Police of the Metropolis Statement of Accounts 2017/18

3 Contents Contents Narrative report Independent Auditor s report to the Commissioner of Police of the Metropolis Statement of responsibilities for the Accounts ii xvii xxi Comprehensive Income and Expenditure Statement 1 Movement in Reserves Statement 2 Balance Sheet 4 Cash Flow Statement 5 Notes to the Financial Statements 6 Police officer pension fund 34 Glossary of terms 37 i Commissioner of Police of the Metropolis Statement of Accounts 2017/18

4 Narrative report Narrative report Introduction These Accounts set out the overall financial position of the Commissioner of Police of the Metropolis (CPM), who is responsible for the Metropolitan Police Service (MPS), for the year ended 31 March The MPS is the largest police force in the UK and amongst the largest in the world. Headquartered in New Scotland Yard, the MPS delivers territorial and specialist policing services to 8.9 million Londoners across 620 square miles; to millions of commuters, tourists and visitors to the capital; and to many National and International communities. At the beginning of last year, the incoming Commissioner set four priorities for the Met in Tackle violent crime and especially knife crime which affects young people across London; Counter terrorism and review our strategy, tactics and resources in light of the threat; Protect children and develop a robust approach to tackling child sexual exploitation; Transform the Met to become a modern police force using technology, data, skills and engagement to fight crime more effectively. Cressida Dick, CBE, QPM Commissioner of Police of the Metropolis Sir Craig Mackey QPM, Deputy Commissioner of Police of the Metropolis The attacks in Westminster, London Bridge and Finsbury Park required huge police deployment, both in immediate response and investigation and community engagement. This brought to the fore the shift in terrorism threat which the country faces. In parallel, London experienced a 6.4 per cent rise in crime. Whilst lower than in the rest of the UK, this, and in particular violent crime, is a strong concern. To tackle this, we invested and deployed significant resources to tackle the serious violence that affects young people. We deployed additional officers, seizing record numbers of knives and guns and arresting people for possession of knives. Substantial progress has been made on all our four priorities but this has not diminished the size of the continuing challenge, against a backdrop of continuing to make financial savings and deliver our transformation programme to ensure that we deliver 21 st century policing in an effective and impactful way. This report provides detail on our financial performance and highlights some of the pro-active approaches we took in in order to tackle rising threat, growing demand and increasing crime levels against a budget which decreased in real terms. The Statement of Accounts The CPM was established as a separate body on the 16 January 2012 under the Police Reform and Social Responsibility Act The CPM is headed by the Commissioner and responsible for the MPS. The primary function of the CPM is the exercise of operational policing duties under the Police Act A separate body called the Mayor s Office for Policing and Crime (MOPAC) function was established at the same time. MOPAC holds the CPM to account for the exercise of these duties, thereby securing the maintenance of an efficient and effective metropolitan police force in London. For accounting purposes MOPAC and the CPM together are known as the MOPAC Group. In the MOPAC Group Accounting Statements, the financial activities of MOPAC and the CPM are consolidated. A separate set of statutory accounts has been published for MOPAC and the MOPAC Group to recognise all the financial transactions incurred during 2017/18 for policing London. ii Commissioner of Police of the Metropolis Statement of Accounts 2017/18

5 Narrative report This Narrative Report provides an overview of the accounting arrangements and outlines the financial performance of the CPM during 2017/18. The 2017/18 Statement of Accounts is prepared in accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Local Authority Accounting 2017/18. The Accounts reflect the current legislative framework as well as the local arrangements operating in practice. Key elements of this framework in 2017/18 include: The Police Reform and Social Responsibility Act 2011 (the Act); The Home Office Financial Management Code of Practice for the Police Forces of England and Wales 2013; MOPAC Scheme of Delegation and Consent; MOPAC Financial Regulations; MOPAC Contract Regulations; The MPS Chief Officer s Financial Instructions Under the legislative framework and local arrangements, MOPAC is responsible for the finances of the whole Group and controls the assets, liabilities and reserves. MOPAC has responsibility for entering into contracts and establishing the contractual framework under which the Commissioner s officers and staff operate. MOPAC receives all income and funding and makes all the payments for the Group from the MOPAC Police Fund. In turn the Commissioner fulfils their statutory responsibilities for delivering an efficient and effective police force within an annual budget, which is set by the Deputy Mayor for Policing and Crime (DMPC) in consultation with the Commissioner. The Commissioner ultimately has a statutory responsibility for maintaining the Queen s peace and to do this has direction and control over their police officers and police staff. It is recognised that in exercising day-to-day direction and control the Commissioner will undertake activities, incur expenditure and generate income to allow the police service to operate effectively. It is appropriate that a distinction is made between the financial impact of this day-to-day direction and control of the force and the overarching strategic control exercised by the DMPC. Therefore the expenditure in respect of operational policing, police officer and staff costs is shown in the CPM Accounts, with the main sources of funding (i.e. central government grants and Council Tax) and the vast majority of balances being recognised in the MOPAC Accounts. The MOPAC Group Accounts shows the overall cost of policing London and includes both the cost of administering MOPAC and MOPAC expenditure on community safety and crime prevention and the Commissioner s expenditure on operational policing. The accounting arrangements between MOPAC and the CPM are detailed more fully in Note 5 to the Accounts on page 13. Financial statements The financial statements for the CPM required under the 2017/18 Code consist of: A Comprehensive Income and Expenditure Statement (CIES) - this recognises the accounting cost in the year of providing policing services under the direction of the Commissioner for the 12 months to 31 March The CIES has been prepared by applying the accounting principles set out in the CIPFA Accounting Code of Practice. The headings used are based on iii Commissioner of Police of the Metropolis Statement of Accounts 2017/18

6 Narrative report the CPM directorates as defined for the purpose of reporting to management; Movement in Reserves Statement this summarises movements to and from the reserves for the year 2017/18. It is analysed into usable reserves (i.e. those that can be applied to fund expenditure) and unusable reserves. Under the MOPAC/CPM Financial Regulations and the Scheme of Delegation, MOPAC holds all reserves and accordingly the reserve balances on the CPM Movement in Reserves Statement as at 31 March 2018 are nil; The Balance Sheet this summarises the financial position of the CPM at 31 March 2018 and sets out any assets, liabilities and reserves. All liabilities are ultimately the responsibility of MOPAC, so at year-end the net worth (total assets minus liabilities) is nil. The liability for police pensions is offset by an intra-group debtor reflecting MOPAC s continuing responsibility to provide funds from the Police Fund to enable the CPM to administer pension payments; The Cash Flow Statement as all of the Group's cash flows during the reporting period are presented in the MOPAC Accounts, this statement simply shows the net surplus on provision of services adjusted for non-cash movements. In addition to the financial statements, the Annual Accounts include a Statement of Responsibilities for the Accounts and information on the Police Officer Pension Fund (providing statements for pension fund income and expenditure, assets and liabilities). An Annual Governance Statement (AGS) accompanies the Statement of Accounts as a separate report. Financial performance Setting the budget The Deputy Mayor for Policing and Crime recommends an annual budget to the Mayor, following consultation with the Commissioner. The approved budget for 2017/18 for the whole MOPAC Group provided for gross expenditure of 3,269 million. The net budget, after taking into account income, specific grant and before reserve usage, was 2,585 million. Within this amount 2,544 million was attributed to the MPS and the remaining 41 million was attributable to MOPAC. Throughout the year the Deputy Mayor for Policing and Crime approved amendments to the budget to reflect known changes. Performance against the Revenue Budget The financial year 2017/18 presented a number of key operational challenges, which are outlined below. In addition savings and efficiencies of 82 million were required to balance the budget. This was part of a programme of savings totalling circa 730 million between 2013/14 and 2017/18. Table 1 provides a summary of the final MPS outturn position for 2017/18 compared with the revised budget. Figures in brackets in the variance column represent reduced expenditure or increased income against the revised budget. In overall terms, expenditure was within budget with vacancies across the year resulting in pay underspends, which together with additional grants (to cover the terrorist events and the Grenfell Tower operation and enquiry) offset an anticipated overspend on certain specific running costs. iv Commissioner of Police of the Metropolis Statement of Accounts 2017/18

7 Narrative report Uncertainty over the medium term police officer establishment led to the early decision to transfer 27.1 million of police pay budget to reserves. This, coupled with the additional funding provided by the Mayor for 2018/19 and beyond has now allowed a period of stability for the officer establishment. The year-end position on police pay and overtime was a 4.9m overspend, comprising a 7.2m underspend on pay (all in areas funded by specific grant and income) and a 12.1 million overspend on officer overtime. Within the overtime, 6.5 million was funded from external sources leaving 5.6 million, due to operational pressures (serious crime) and to cover vacancies. The MPS (CPM) also had an underspend of 37.7 million on police staff pay (and an overspend of 3.9 million on police staff overtime). The underspend was driven by vacancies within a number of areas - Met Detention, Designated Detention Officers, Forensic Health Care Nurses, Public Access Officers, Met CC, Forensics and Met Intelligence. The shortfall in police staff pay was partly managed through other devolved budgets such as supplies and services, for example using Forensic Medical Officers to cover for the nurse vacancies and police officer overtime to provide cover in Met Detention and Dedicated Detention Officers. Recruitment campaigns are underway to address the significant number of vacancies across the MPS. The budget for running costs was overspent by 29.3 million, due in the main to an overspend on the BSS contract, part of which was for a one-off settlement (for which the MPS will receive a reduction in expenditure in future years) with the balance for higher than anticipated recruitment volumes in the final quarter. In addition, the transition to the new PSOP system took longer than anticipated, driving further additional costs. A commercial dispute is outstanding regarding additional costs incurred and the MPS and SSCL will imminently be entering into a facilitated mediation process. Further details are within the Contingent Liabilities section on page 33. The MPS received Special Grant Funding from the Home Office for the terrorist incidents in 2017 ( 7.8m) and the Grenfell Tower operation and subsequent investigation ( 10.5m). Additional grant was also received to cover Counter-Terrorism and Protective Security costs. The MPS also received extra income for POCA, driver awareness courses, direct entry Superintendents and the settlement of a legal claim. However these successes were offset partially by under-recovery of TfL funding for PCSOs and further under-recovery due to International Protect and Prepare vacancies. v Commissioner of Police of the Metropolis Statement of Accounts 2017/18

8 Narrative report Table 1 Final outturn position for the MPS (CPM) 2017/18 compared with the revised budget* MOPAC Group CPM Approved annual budget Revised annual budget Outturn Variance Overspend/ (underspend) Revised annual budget Outturn Variance Overspend/ (underspend) Pay 1,869,967 1,875,567 1,880,491 4,924 Police officer pay 1,875,567 1,880,491 4, , , ,254 (34,540) Police staff pay 544, ,938 (33,880) 2,417,484 2,429,361 2,399,745 (29,616) Total pay 2,420,385 2,391,429 (28,956) Running expenses 31,382 26,046 26, Employee related expenditure 25,697 26, , , ,143 (1,598) Premises costs 172, ,816 (1,598) 59,888 69,622 73,909 4,287 Transport costs 69,610 73,897 4, , , ,081 20,037 Supplies & services 474, ,072 26,249 42,957 46,159 46, Capital financing costs 46,159 46, ,875 34,434 33,695 ( 739) Discretionary pension costs 34,434 33,694 ( 740) 851, , ,129 23,083 Total running expenses 823, ,469 29,332 3,269,105 3,304,407 3,297,874 (6,533) Total gross expenditure 3,243,522 3,243, (683,705) (739,886) (755,551) (15,665) Total income and specific grants (720,078) (737,949) (17,871) 2,585,400 2,564,521 2,542,323 (22,198) Net expenditure 2,523,444 2,505,949 (17,495) (81,800) (60,867) (38,669) 22,198 Transfer to/(from) earmarked reserve (57,067) (39,572) 17, Transfer to/(from) general reserve ,503,600 2,503,654 2,503,654 0 Budget requirement 2,466,377 2,466,377 0 * The amount of budget attributed to the CPM is equal to the MOPAC Group budget less the costs of MOPAC. vi Commissioner of Police of the Metropolis Statement of Accounts 2017/18

9 Narrative report Review of 2017/18 performance The Mayor s Police and Crime Plan was published on 20 March 2017 and is available in full online. Operational policing in London is the responsibility of the Metropolitan Police Commissioner, Cressida Dick who took up her post in April We set out our 2017/18 priorities in the Met Business Plan published in June Our top four priorities were to: Tackle violent crime and especially knife crime which affects young people across London Counter terrorism and review our strategy, tactics and resources in light of the threat Protect children and develop a robust approach to tackling child sexual exploitation Transform the Met to become a modern police force using technology, data, skills and engagement to fight crime more effectively Substantial progress has been made on all four but violence is continuing to pose a challenge in terms of enforcement but more widely, to our service and to partners and communities, highlighting the vital need for collaboration and engagement across London. Making London safer Bearing down on violent crime Recorded crime figures over 2017/18 have shown increases across England and Wales. Whilst the rises in many offences were lower in the capital than in the rest of the country, and whilst the rate of increase in a number of violent crimes seem to show a slowdown (potentially suggesting our operations are beginning to have some impact), levels are generally at a five year high. Tackling violence remains a top priority for the Met. But to tackle the roots of the issue requires a whole community response. In 2017/18 we ve pushed social media companies to take down gang videos. We supported community weapon sweeps. We have worked with analysts from the Home Office, ONS, MOPAC and London boroughs to delve into millions of records and data for additional insight into the drivers of violence and its prevention. The Home Office Serious Violence Strategy renewed focus onto the drugs market and on County Lines. The Mayor launched the Young Londoners Fund investing 15million a year to help young Londoners at risk of getting caught up in crime. In 2017/18, we invested and deployed significant additional resources to tackle the serious violence that affects young people. Under Operation Sceptre we established a new taskforce of 100 officers, made up of both uniformed officers and detectives focusing on hot spots across London and intelligence-led operations on an intensive basis. We intensified activities, seizing record numbers of knives and guns and arresting people for possession of knives. Moped-enabled crime and acid attacks highlighted the complexity of tactics that officers have to confront. We deployed a set of tactics including enforcement, diversion and prevention to bear down on violence. There have been some initial signs of impact: scooter-enabled crime, which rose steeply since 2014, is starting to abate; knife crime injuries among the under 25s have levelled off. However, the number of homicides, 46 in the last three months of 2017/18, is a huge concern. We upped our enforcement activity with more presence of uniformed officers on the street. We multiplied pro-active operations. As at end of year, our homicide investigators had made arrests in 39 of these investigations and charges in 30. vii Commissioner of Police of the Metropolis Statement of Accounts 2017/18

10 Narrative report Countering terrorism In 2017/18, policing in London faced unprecedented demand. The terrorist attacks in Westminster, London Bridge and Finsbury Park required huge police deployment both in the immediate incident response and in the management of the aftermath, investigation, public reassurance deployments and reaching out to London s communities. In September, the Parsons Green bombing highlighted again the shift in terrorist threat which the country faces. The attacks placed a significant stretch on our organisation in terms of manpower and funding, not just on counter-terrorism police but also neighbourhood officers, and officers and staff across the Met. The attacks took a heavy toll on our officers with the murder of PC Keith Palmer in Westminster and a number of officers injured in the London Bridge incident. The courage, selflessness and human response of our officers, staff and other emergency services against these inhuman attacks showed the real measure of our effectiveness. They also demonstrated that our capability programme to strengthen Armed Policing is having the intended operational effect in terms of the enhanced armed response we were able to provide Tackling scooter enabled crime Through Operation Venice, we have had a number of successes in tackling scooter gangs. In December, ten members of a moped gang were given jail sentences of up to 18 years after a 1.2 million series of raids on mobile phone shops. Using fencing posts as battering rams and angle grinders, and, armed with hammers and knives, they had ransacked 17 shops. We will continue to do all we can to stop serious criminality and have taken a number of steps to further combat moped-enabled crime. These include new motorcycles better able to pursue and get ahead of the criminals, mobile stinger devices that can bring pursuits to an end quickly and DNA spray used to tag offenders and enable us to identify them at a later point. To help reduce offences, we launched the Be Safe campaign, encouraging scooter owners to better secure their vehicles and prevent theft and potentially the subsequent use of the vehicle in many other crimes. Confronting acid attacks Corrosive-based attacks made the headlines in the summer following a barbaric series of five attacks that took place in the space of 90 minutes in east London. Every Met response vehicle was issued with a box containing five litres of water, approved gauntlets and goggles. We also worked with the NPCC, the Home Office, CPS, MOPAC, the NHS, British Retailers Consortium and other partners to develop a wider response, including education programmes for schools, regulating sale, testing kits and joint response with the London Fire Brigade. Dealing with the Grenfell Tower tragedy The Grenfell Tower fire showed an extraordinary response from the local and wider community. We led, and continue to work, on the investigation including the interviewing of 2,500 witnesses, investigating 330 organisations, companies and corporate bodies and analysing over 30 million documents. Through the summer, our investigation team and liaison officers updated the families of the victims, helping people who were going through the most harrowing experience. We mobilised hundreds of officers and staff in the search and recovery inside Grenfell Tower, the process of formally identifying those who had died and the investigation into how and why the fire started. Complexity, scale and the nature of the incident make this a demanding process, at both a professional and emotional level. Tackling organised crime across London We put in place 13 Local Organised Crime Advisors within local commands and Heathrow and City airports. They link centrally with the Organised Crime Command (SCO7) and locally cover issues linked to gangs, human trafficking, money laundering and cybercrime amongst others. Some early results included the closure of large brothel and human trafficking networks, as well as significant drug seizures. These advisors helped creating a closer working relationship between central and local policing units, as well as local authorities. viii Commissioner of Police of the Metropolis Statement of Accounts 2017/18

11 Narrative report Pursuing and preventing against fraud and cyber-crime Our Falcon command which focuses on fraud and cyber-crime, obtained significant results in 2017/18. One suspect was arrested whilst carrying out multiple continuous cyber-attacks against UK businesses to harvest their customer data. Operation Arad charged 56 suspects on one particular organised criminal network committing online shopping fraud, with 4,000 victims having reported a 14.5 million loss. We are worked with the banking sector to challenge mandate fraud (whereby fraudsters obtain details of direct debits, standing orders or account transfer details and amend them to transfer monies to other accounts). Our officers also made their first seizure of crypto-currency Bitcoin. Protecting the public and events We successfully policed an ever increasing number of large scale events and celebrations. Our biggest annual operation is the Notting Hill Carnival which requires more than 15,000 officer tours of duty. The event recorded fewer incidents and acts of violence than the previous year. The New Year celebration also passed peacefully and safely for the vast majority of celebrants. The total number of officers and staff deployed was 2,553, down 21 per cent from last year. Whilst decreasing police numbers, we increased firearms capability with Armed Response Vehicles, Counter Terrorism Specialist Firearms Officers and armed support at entry points to the ticketed area. Tackling burglary In October we launched the latest of our Be Safe series of campaigns to encourage the public to protect themselves from burglary, taking simple steps to reduce their vulnerability to crime. In parallel, we continued to roll out MetTrace kits to residents to help make their homes more secure. The kits contain crime prevention advice and free SmartWater forensic marking equipment. Evidence shows a 25 per cent reduction in burglaries in these areas compared to non- MetTrace areas equating to 3,957 fewer burglaries in these areas. The kits have been delivered to over 287,000 residents and a further 108,750 kits will be delivered over the next ten months. Safeguarding communities Deploying Dedicated Ward Officers We deployed two Dedicated Ward Officers and one PCSO in each of London s 629 wards. Ward internet pages are now in place for all London wards, linked to Twitter accounts to give residents an opportunity to be better informed about local policing, and a way to contact their local team. We started to introduce Community Contact Sessions to provide communities face-to-face access to our services locally. These take place at least once a week, for at least an hour in every ward across London. Integrating our safeguarding approach Tackling high harm crimes is a priority for the Met and the Mayor. The growth in demand from domestic abuse, sexual offences, child protection, mental health and hate crime - together with a critical look of how we have delivered some of these services in the past - led us to review how we are configured to best protect vulnerable people. We tested our new Safeguarding approach on two BCU Pathfinders (Central North: Islington and Camden; and East Area: Barking and Dagenham, Havering and Redbridge). Services previously delivered separately by borough units and the Sexual Offences, Exploitation and Child Abuse Command have been integrated, offering a single front door model for vulnerable children and adults, the investigation of domestic abuse, rape and sexual offences and child abuse. We received consistent and positive feedback on the Multi-Agency-Safeguarding-Hub/ Child Abuse Investigation Team (MASH/CAIT) joint referral process and positive comment from OFSTED on improvements to partnership working arrangements. We invested more in prevention and problem solving; working closely with partners to identify risk and signpost vulnerable people to the appropriate agency to provide support; and embedding our safeguarding service in neighbourhood policing so that victims receive the appropriate level of support and care. In 2017/18 we started to increase the number of officers dedicated to ix Commissioner of Police of the Metropolis Statement of Accounts 2017/18

12 Narrative report Safeguarding and Offender Management, and our cohort of Safer School Officers. This will continue over the coming year. Safeguarding children We conducted an internal campaign about child safeguarding Spot It to Stop It to challenge police officers and staff to think about the signs that a child may be at risk of harm, at every incident they attend and during every investigation they conduct. The 12-month campaign supports the delivery of the recommendations made by Her Majesty's Inspectorate of Constabulary and Fire and Rescue Services (HMICFRS) into child safeguarding. It also focused on missing children, child abuse and children who are drawn into gangs and crime and criminally exploited. We worked to ensure local officers are aware of who the high-risk registered sex offenders on their borough are. We set up an internal inspection team looking at the quality of our response to cases and a monthly performance meeting holding local command units representatives to account on inspection findings and their actions to improve performance. Monitoring sex offenders We worked to improve intelligence relating to high and very high risk registered sex offenders, sharing with our Safer Neighbourhood Teams in the context of Operation BEAT ('Briefing, Engagement, Active Tasking'). We are already seeing positive results regarding sex offender management as a direct result of the implementation of Operation BEAT. An example of this occurred in Hackney where SNT officers gathered intelligence regarding a particular offender; this information was passed to the JIGSAW team who were able to establish that the offender had breached his Sexual Harm Prevention Order. He is now serving 20 weeks in prison. Without the assistance of the SNT it is unlikely these breaches would have been discovered. Tackling violence against women and girls The Met supported MOPAC in the review of their strategy to tackle violence against women and girls (VAWG), working towards better services for victims of sexual abuse, tackling harmful practices such as FGM and using technology such as Body Worn Video to counter attrition in domestic abuse prosecutions. Increasing awareness around sexual abuse There are some acknowledged under-reported crimes, such as sexual offences, where we worked to increase reporting. We campaigned through the year and as part of the national sexual abuse and sexual violence awareness week to highlight the help we can provide to all victims of sexual violence. We developed more ways for victims of crimes such as domestic abuse and sexual offences to report abuse. Improving disclosure Following the collapse of several rape trials in which vital evidence contained on mobile phones and other digital devices was either not examined or not shared with the defence, the Met allocated 120 officers to review 600 sex assault cases, including all rape cases heading to trial. Recorded rape offences have doubled over the past four years, in part reflecting growing confidence from the victims in reporting these crimes. The increase in reported numbers has been compounded by an exponential growth in digital evidence (such as text messages) for each case, particularly in cases where the two parties, as in most serious sexual offences, know each other. We used this audit to strengthen our future processes through a joint CPS-Police disclosure improvement plan. Implementing a Stalking Threat Assessment Centre We worked with MOPAC to establish a Stalking Threat Assessment Centre together with project partners (The Suzy Lamplugh Trust and Barnet, Enfield and Haringey Mental Healthcare Trust). This is a two-year pilot to create a behavioural change programme for offenders. The centre will review incoming cases on a daily basis, with referrals coming in from mental health teams in London boroughs as well as from the Suzy Lamplugh Trust. Our overall objective is to assess the best way to reduce recidivism in stalkers. x Commissioner of Police of the Metropolis Statement of Accounts 2017/18

13 Narrative report Dealing with hate crime There was a rise in Islamophobic offences in the days immediately following the attacks in London and Manchester. We worked in partnership with organisations such as Tell Mama, Sharan Project, and Galop to support hate crime victims and developed awareness raising activities in every London borough, to encourage victims - and anyone who knows or suspects incidents of such crime- to report them to police or a third party organisation. We also launched Operation Resolute to improve the way we investigate hate crime incidents directed against our own officers and staff whilst on duty. Piloting an Online Hate Crime Hub In 2017/18, we launched a new Online Hate Crime Hub unit to improve the police response to online hate by gathering intelligence, improving understanding and testing new investigation methods. The project has had considerable success in forming relationships with social media providers, third sector and civil society groups. Of specific note, the relationship with Stop Hate UK and its function as an independent referral agency for hate incidents, has led to considerable success in having sub-criminal offensive material removed swiftly. A transformed Modern efficient Met Modernising our force In the face of our policing and resourcing challenges, we have continued to push for transformation and modernisation within our organisation, so that we can provide a better service London and give our officers the means to tackle crime most effectively at a local level. In 2017/18, we launched a pan-london Telephone and Digital Investigation Unit, completed the roll out of Body Worn Video cameras, and that of mobile devices across the force. We tested our new Basic Command Unit (BCU) model and, with MOPAC, consulted the public on our public access and engagement strategy for the coming years. These investments and initiatives will allow us to maintain a good level of service to the public, and ensure that officers are focused on serious crime and cases there is a realistic chance of solving, available to respond to emergencies and helping those members of the public that need our help the most. Developing public access The Met is working hard to ensure it continues to become an even more efficient organisation that provides an effective service, value for money as well as a service that is valued by Londoners. MOPAC s Public Access Strategy, published in November following a consultation during which thousands of Londoners expressed their views, sets out how we can increase productivity and find some of the savings that are required of us in the next four years, whilst maximising accessibility and the presence of our officers on the street. The strategy will help generate 164 million of capital receipts that can be re-invest in the retained estate and in funding police officers equipment. We will close some of our buildings but will maintain a 24/7 police front counter in every London borough. Equipping our officers with the right tools London is now the global leader in the deployment of body worn video. In 2017/18, Body Worn Video (BWV) were rolled out to 21,000 officers. The Met is the only UK police force digitally sharing BWV with the Crown Prosecution Service (CPS), with officers now routinely submitting more than 4,500 clips a month. BWV is also used in training for new recruits, helping them to develop their personal interaction skills by reviewing footage of their role play exercise. In March we trialled mobile fingerprinting devices in Westminster, with about 600 to be rolled out later in 2018/19. The Met is the first British police service to develop its own system. A biometric reader is paired with a mobile phone that links through the Police National Computer, which, if an offence has taken place, confirms the identification of a suspect if they have a criminal record, saving officers the time of taking the suspect into custody or waiting for specialist equipment. xi Commissioner of Police of the Metropolis Statement of Accounts 2017/18

14 Narrative report Maximising their deployment on the ground For example, we have started rolling out 30,000 tablets and laptops. We are continuing to expand our online crime reporting service, and, reflecting the Mayor s priorities, we met our commitment to put two Dedicated Ward Officers (DWOs) and one PCSO in every London ward by December These officers work with local people on local priorities and are not taken away to help with policing elsewhere in London. Supplying officers with tablets will also mean that they will be able to spend more time in the community responding to their concerns, again cutting down the need for residents to visit a front counter. We completed the rollout of smartphones to Safer Neighbourhood team officers which enables them to tweet whilst out on patrol, keeping residents informed. Laptop and tablets were also roll-out across the organisation to support officers and staff delivering an efficient service to the public: exploiting the mobility, we developed apps for the devices: CRIS (the Met Crime Reporting Information System which allows officers to create, update and view crime reports) is now available. An eforms app is in evaluation in Harrow and Brent which allows to save and store statements, get them signed, attach photos from the device camera and upload them to the file without officers having to go back to the station with hard copies. Providing better information to the public We launched a new website, with local information pages. Non-emergency online reporting (crime and non-crime) went live in March 2017 a step towards providing people with a virtual police station that is easily accessible, more responsive and helps Londoners find the right local prevention advice. Ward internet pages are in place. Voice Your Concerns went live on ward pages in May. The Live Chat pilot went live in March Operators in MetCC are now able to assist the public over Live Chat on our Road Traffic Incident website page and on the Contact Us forms. Making it easier to report crimes Advances in technology help us to provide new ways for the public to access our services. The ability to report crime online is proving popular, with two thirds of road traffic incidents now being reported this way. In the last 6 months of the year, 51,000 crimes or incidents were reported online as well as 31,000 road traffic incidents. The process has been made as simple and easy as possible, an alternative to calling our 101 non-emergency number. Each report is triaged by one of our experienced call handlers, the same ones who take 999 and 101 calls, within 45 minutes of submission, and followed-up with a response within at least 48 hours. The majority are investigated by our Telephone and Digital Investigation Unit but if the non-emergency crime reported is more serious, officers will still attend on location. Two-thirds of self-reported road traffic incidents are now reported online. 12 per cent of the reports represent new demand (where respondents said they would not have reported the crime, had they not been able to do it online). Investigating more efficiently The Telephone and Digital investigation unit was launched in September. The unit takes crime reports from across London on live call transfer from Met Command and Control (MetCC) and online. It carries out initial investigations. Survey data shows that victims who have used the service show significant levels of satisfaction. There was considerable coverage of the Met s Crime Assessment Policy in 2017/18. Against the backdrop of the current terror threat, rising violence, demand and decreasing resources, we remain committed to keep London and Londoners safe. But we must prioritise our resources to be able to cope with an ever increasing demand, so that our officers can be in the right place at the right time to help the public. The Crime Assessment Policy most police forces have an equivalent tool in place - is helping us to do just that. It focuses our officers on serious crime and cases where there is a realistic chance that we will be able to solve it. It helps us be available to xii Commissioner of Police of the Metropolis Statement of Accounts 2017/18

15 Narrative report respond to emergencies and help those members of the public that need our help the most. We rolled out Community Resolution across London and trained over 10,000 officers to the ability to deliver it in appropriate cases, for the less serious crimes. Diversifying our workforce We continued to encourage a force that looks like London. Female officers account for over a quarter (26 per cent) of all police officers, and BAME officers for 14 per cent of all police officers. We want to increase this further. The latest intake of 227 police students comprised 28 per cent from BAME backgrounds and 29 per cent women. In November, the Met won two Personnel Today awards: for diversity and inclusion as well as overall winner. Police Now, our graduate scheme, also achieved a 54 per cent female and 28 per cent BAME recruitment rate in year two, higher than standard recruitment routes. We also opened up our recruitment, with the first direct entry Detective Constables, attracting a diverse pool of applicants. Work is now underway to ensure that ongoing training and support for this new recruitment pathway is in place at local level. End of Year Crime Figures 2017/18 The Metropolitan Police Service statistics show that total notifiable offences have increased between April to March 2017/18 compared with April to March 2016/17. Whilst recorded crime continues to rise in the Met's area, increases in many crimes are more marked in other parts of the country. Total Notifiable Offences Figures show that overall crime - total notifiable offences - has increased by 6.4 per cent (777,458 to 827,225 offences). However, many groups of offences remain lower than they were in Violence against the person / homicide Violence against the person is up by 5.26 per cent (237,774 to 250,287 offences). Under this category, homicides are up by 44 per cent (109 to 157 offences). Eight of these were as a result of the appalling terror attacks that occurred at Westminster Bridge in March, London Bridge in June and Finsbury Park in June. However, the number of homicides is still much lower than in 2003/04 when there were 205 instances. Nevertheless, any murder is one murder too many and detectives are working 24/7 to catch those responsible, using all resources available to them. They are also working with the Crown Prosecution Service to bring offenders to justice, as well as supporting families and loved ones at the most difficult of times. Assault with injury increased by 0.54 per cent (50,836 to 51,110 offences). Knife crime offences are up by 21.2 per cent (12,115 to 14,680 offences) and knife crime with injury offences are up by 5.7 per cent (4,446 to 4,700 offences). Knife crime injuries to under 25s have stabilised and recorded offences at present have increased by 3 per cent compared to a 24 per cent increase for the same period last year. Conversely, gun crime offences are down by 4.6 per cent over the comparison period (2,553 to 2,435 offences), although there was an increase in the discharge of lethal barrelled guns by 23.3 per cent (313 to 386 offences). A Violent Crime Task Force has been instigated to tackle violent crime, weapon-enabled crime and serious criminality. These officers will use a full range of tactics to identify, locate and confront street-level offenders, gangs and knife crime offenders. This unit will be supported by borough officers, Trident and Area Crime Command and specialist units, as well as community partners. xiii Commissioner of Police of the Metropolis Statement of Accounts 2017/18

16 Narrative report Operation Sceptre will continue to target those people known to routinely carry knives through intelligence-led operations, the increased and proper use of 'stop and search', community weapons sweeps and targeting the shops and markets that sell knives to children. Sexual offences Sexual offences are up by per cent (17,880 to 19,854 offences); within that, recorded rape is up by per cent (6,510 to 7,707 offences) and other sexual offences are up by 6.83 per cent (11,370 to 12,147 offences). The Met's Child Abuse and Sexual Offences Command has been working within the diverse communities to address under reporting of offences, particularly through a social media campaign: #ITSNOTOK. Burglary / Robbery Burglary of homes and businesses is up by per cent (69,528 to 77,626 offences). The Met is committed to reducing the number of burglaries across London. It deploys patrols to hotspot areas, carries out proactive operations in east and south London against organised criminal groups who commit these offences, and collaborates with the home-counties forces to tackle cross-border offending. The highly successful MetTrace property marking kits (traceable forensic liquid which can be used to invisibly tag valuables and possessions) are being rolled out for a third year. Over a quarter of a million homes have already been provided with MetTrace. Total robbery is up by per cent (24,202 to 32,869 offences), with robbery of personal property up by at per cent (22,479 to 30,609 offences). Theft is up by 8.05 per cent (305,876 to 330,511 offences) with theft from person at per cent, (38,013 to 47,587 offences). Some of the increase in robbery and theft is attributable to scooter-related crime. The Met has been putting a huge amount of effort into stemming the rise in these offences. In October, new tactics such as DNA spray, light-weight police motorcycles, and remote control tyre deflation devices were introduced. As a result, reductions in scooter-related crime are being experienced. In April 2017, there were 1,512 scooter, moped and motorcycle thefts. In less than a year this number was reduced - March 2018 saw 756 thefts - a 50 per cent reduction. In July 2017, the number of crimes committed using scooter, moped and motorcycle peaked at 2,592. In less than a year this number was reduced - the month of March 2018 saw 1,238 - a 52 per cent reduction. The Met continues to experience a very busy and challenging time against the backdrop of significant reductions in resources. We are very concerned about the rise in crime in the capital, particularly murder, violent crime and knife crime. Our thoughts are with the victims' families of these tragic and horrific crimes which have brought untold misery to countless people. We are strengthening local policing by bringing specialist officers closer to communities, and have increased the number of neighbourhoods officers dedicated to particular areas to engage with the public and work with them to keep them safe. There are now two Dedicated Ward Officers and a dedicated PCSO in each London ward and the addition of personal mobile technology will increase their capacity for community engagement. Additionally, there are 442 officers that can be allocated to priority wards as additional Dedicated Ward Officers, but still dedicated to neighbourhood policing. We also have officers working with schools on youth engagement and identifying young people most in need of support, intervention and diversion. Our policing initiatives are seeing reductions. We are reducing the number of young people who are being injured in knife attacks. We have made record seizures of guns. Theft of scooters and xiv Commissioner of Police of the Metropolis Statement of Accounts 2017/18

17 Narrative report scooter-enabled crime has seen a month-on-month downward trend since October thanks to proactive policing operations, new tactics, and the 'Be Safe' awareness campaign. However, in the context of the murders that have been committed in our communities, we can only view these as small successes. We are upping our enforcements efforts and building on some of the work we have been already doing. We are putting more officers on the street and have launched the Violent Crime Taskforce. We are doubling our targeted anti-knife crime activity with hundreds more officers on visible patrols in affected communities. But despite our continued focus on reducing knife crime, prevention and diversion will always be key. There are complex social reasons why more young people are carrying knives and we have been absolutely clear that knife crime cannot be solved by the police alone. We also need the help and support of London's agencies and communities who we know are behind us. Despite the challenges that lay ahead, the Met will continue to focus on bringing offenders to justice, making the streets hostile territory for criminals, supporting victims and working closely with communities." Outlook for 2018/19 and key challenges The 2018/19 gross revenue budget has been set at 3,331.6 million, an increase of 1.3% from the revised 2017/18 budgeted figure of 3,304.4 million to reflect increases in our overall funding sources. The budget is funded by a general government grant of 1,882.1 million, retained business rates of 92.0 million and council tax income of million. Additionally, MOPAC is budgeting to receive million in specific grants and income, and is planning to utilise 29.0 million of reserves. The policing element of the Band D council tax precept for 2018/19 is (2017/ ). The Mayor approved a balanced budget for 2018/19. The MPS Management Board has agreed a medium term plan for officer FTEs based on existing funding assumptions. This allows for an increase in officer establishment from a base of 30,000 FTEs in 2018/19, managing affordability through reserves. This will allow the organisation a level of certainty that will be the basis for future plans. Whilst the revenue budget is balanced in 2018/19, there remain significant savings requirements from 2019/20 to 2021/22. A budget process will begin in the summer 2018 that will examine all aspects of the revenue and capital budget and identify efficiency savings that will balance the budget in the medium-term. This will be aligned to the MPS One Met Model programme and the Mayor s Police and Crime Plan. Capital investments of million are planned for 2018/19 and will be utilised to deliver the modernisation of policing s IT infrastructure and estate, both of which will deliver revenue savings in years to come. The Balance Sheet Under MOPAC/CPM financial regulations the CPM is not responsible for the acquisition, disposal or maintenance of long-term assets which are instead the responsibility of the Deputy Mayor through the MOPAC Capital programme. All long-term assets are therefore recognised on the MOPAC Balance Sheet rather than on the CPM Balance Sheet. The CPM does, however, make use of these assets in the discharge of policing duties. Details of assets held by MOPAC as well as xv Commissioner of Police of the Metropolis Statement of Accounts 2017/18

18 Narrative report information on other categories of assets and liabilities can be found in the 2017/18 MOPAC and the MOPAC Group Statement of Accounts. Reserves The reserves of the Group are held by MOPAC and are available for the Commissioner to utilise in the performance of their duties subject to approval by the Deputy Mayor. These reserves and their purposes can be reviewed in the MOPAC Group Statement of Accounts. Pensions The Police Officer Pension Liability and Police Officer Pension Reserve reflect the implementation of International Financial Reporting Standard IAS 19. The pension liability shows the underlying commitments that the Group has in the long run to pay retirement benefits obligations as they fall due. The CPM Balance Sheet also recognises a long-term debtor with the MOPAC equivalent to the IAS 19 liability. This debtor reflects the commitment of the MOPAC to provide funding to the CPM to meet these obligations. The most recent Police Pension fund valuation by the scheme s actuary shows an increase in liabilities due in the main to the change in actuarial assumptions used to calculate the pensions liability. Pension contributions of 21.3% of pensionable pay are made to finance the liability, with the actual pensions and commuted lump sums being met directly by the Police Pension Fund Revenue Account. The shortfall on the Pension Fund between contributions and other income receivable and benefits payable was met by the Home Office in 2017/18. Accounting changes in 2017/18 There were no changes in the CIPFA Code 2017/18 that materially affected the MOPAC Statement of Accounts. Annual Governance Statement The Accounts and Audit Regulations 2015 require that the Annual Governance Statement (AGS) accompanies the Statement of Accounts. The CPM has elected to publish the AGS as a separate document to the Statement of Accounts. The AGS is a statutory document which explains the governance processes and procedures in place to enable the MPS to carry out its functions effectively. The AGS highlights the CPM s internal control environment, comments on its effectiveness and identifies issues for future work. The CPM performs an annual assurance review appraising the governance arrangements currently in place. xvi Commissioner of Police of the Metropolis Statement of Accounts 2017/18