Police Investigations and Review Commissioner: governance and accountability framework

Governance and Accountability

Legal Origins of Powers and Duties

9. The PIRC is established under the Police, Public Order and Criminal Justice (Scotland) Act 2006 as amended by the Police and Fire Reform (Scotland) Act 2012. The constitution of the PIRC is set out in the 2006 Act. The Commissioner is not a Servant or Agent of the Crown, and has no status, immunity or privileges of the Crown. The Commissioner’s property is not the property, or property held on behalf of the Crown. However, the PIRC, in its day to day work, will carry out its functions under the direction of:

• the Crown Office and Procurator Fiscal Service;

and at the request of:

• the Chief Constable of the Police Service of Scotland;
• the Scottish Police Authority.

Additionally, the Commissioner can:

• consider investigating cases where it would be in the public interest to do so.

Ministerial Responsibilities

10. The Scottish Ministers are ultimately accountable to the Scottish Parliament for the activities of the PIRC and its use of resources. They are not however responsible for day to day operational matters. Their responsibilities include:

• agreeing the PIRC’s strategic aims and objectives and key targets as part of the strategic planning process;
• agreeing the budget and the associated grant in aid requirement to be paid to the PIRC, and securing the necessary Parliamentary approval;

• carrying out responsibilities specified in the Police and Public Order and Criminal Justice (Scotland) Act 2006 as amended, such as appointment of the Commissioner, approving terms and conditions of the Commissioner; and other matters such as approving the pay remit in line with SG Pay Policy covering all staff employed by the PIRC and laying the PIRC’s accounts together with the Annual Report before the Scottish Parliament.

PIRC Executive Team and Heads of Department Group Responsibilities

11. The PIRC, which is an Executive NDPB, consists of an Executive Team, comprising the Commissioner, Director of Operations, and a Heads of Department Group. The role of the Executive Team and Heads of Department Group is to provide leadership, direction, support and guidance to ensure the PIRC is committed to delivering its functions effectively and efficiently and independently whilst recognising the aims, policies and priorities of the Scottish Ministers. The responsibilities include:

• taking forward the strategic objectives agreed by the Scottish Ministers, as set out in PIRC’s Strategic plan;

• advising the Commissioner on the discharge of her/his responsibilities – as set out in this document, in the founding legislation and in any other relevant instructions and guidance issued by or on behalf of the Scottish Ministers;

• promoting the efficient, economic and effective use of staff and other resources consistent with the principles of Best Value, including, where appropriate, participation in shared services arrangements;
• determining the steps needed to deal with changes which are likely to impact on the strategic aims, objectives of the PIRC or on the attainability of its operational targets;
• (in reaching decisions) taking into account relevant guidance issued by the Scottish Ministers;
• acting consistently with principles of good governance, accountability and transparency while demonstrating high standards, including openness in its decision making at all times; determining the steps needed to deal with wider changes which are likely to impact on the strategic aims and objectives of the PIRC or its attainability of its operational targets;

• ensuring that an effective pay and conditions negotiating framework is in place which will allow a negotiated settlement within the parameters of the Scottish Government’s Public Sector Pay policy;

• approving the annual accounts and ensuring Scottish Ministers are provided with an Annual Report and Accounts and pass to the sponsor unit to allow laying in the Scottish Parliament by end December;
• maintaining suitable management information systems for each area of the business, assessing on a continuous basis to ensure efficient and effective working practices and processes are in place and provide updates to the sponsor unit on request;
• ensuring that requests for appropriate information from the PIRC in relation to briefings for Scottish Ministers, Parliamentary Questions, ministerial and official correspondence, is forwarded timeously to the sponsor unit;
• ensuring that effective arrangements are in place to provide assurance on risk management (including in respect of personnel, physical and cyber risks/threats/hazards), governance and internal control;
• ensuring that the sponsor unit receives and reviews regular financial information concerning the management and performance of the PIRC and is informed in a timely manner about any concerns regarding the activities of the PIRC;
• demonstrating high standards of corporate governance at all times, including openness and transparency in its decision making.

The Commissioner’s Responsibilities

12. The Commissioner is accountable to Scottish Ministers and, in common with any individual with responsibility for devolved functions, may also be held to account by the Scottish Parliament. The Commissioner is responsible for ensuring that the PIRC’s policies and actions support the Scottish Ministers’ wider strategic policies and that its affairs are conducted with probity. The Commissioner is responsible for the staffing, performance and management of PIRC staff.

13. In leading the PIRC, the Commissioner must ensure that:

• PIRC is subject to regular self-assessment and is working effectively and efficiently;
• the Executive Team and Heads of Department Group in accordance with recognised good practice in corporate governance, is diverse both in terms of relevant skills, experience and knowledge appropriate to directing the PIRC business, and in terms of protected characteristics under the Equality Act;
• he or she together with the Executive Team and Heads of Department, receives appropriate induction training including financial management and reporting requirements;
• succession planning takes place to ensure the Executive Team and Heads of Department Group are diverse and effective;
• there are effective relationships with Scottish Government officials and wider stakeholder groups;

• PIRC maintain and secure suitable arrangements for the handling of relevant complaints by the Chief Constable of the Police Service of Scotland and the Scottish Police Authority;
• PIRC seek to maintain and secure suitable arrangements for the handling of relevant complaints with all other police bodies operating in Scotland;
• PIRC maintain and secure suitable arrangements for undertaking effective independent investigations into serious incidents involving the police and allegations of misconduct of senior officers.
• there is a Code of Conduct in place, which is consistent with the code approved by the Scottish Ministers; and
• there are suitable performance appraisal systems in place and performance is assessed on a continuous basis with formal appraisals being taken at least annually.

PIRC Director of Operation’s Responsibilities

14. The Director of Operations (or suitable post holder) is responsible for advising the Commissioner on the discharge of her/his functions and implementing her/his decisions. His/her general responsibilities include:

• ensuring that financial considerations are taken fully into account at all stages in reaching and executing PIRC’s decisions, and that appropriate financial appraisal and evaluation techniques, consistent with the Appraisal and Evaluation section of the Scottish Public Finance Manual (SPFM), are followed;

• having robust performance and risk management arrangements - consistent with the Risk Management section of the SPFM - in place that support the achievement of the PIRC’s priorities and that facilitate comprehensive reporting to the Commissioner, the Scottish Government and the wider public;
• ensuring that adequate systems of internal control are maintained by the PIRC, including effective measures against fraud and theft consistent with the Fraud section of the SPFM;
• establishing appropriate documented internal delegated authority arrangements consistent with the Delegated Authority section of the SPFM;
• advising the Commissioner and Heads of Department Group on the performance of the PIRC compared with its aim[s] and objectives;
• preparing the PIRC’s strategic and business plans, annual report and pay remit in light of its strategic aims and objectives agreed by Scottish Ministers; and
• ensuring that the PIRC adheres, where appropriate, to the SG Programme and Project Management Principles

The PIRC Accountable Officer’s Responsibilities

15. The Principal Accountable Officer for the Scottish Administration (the Permanent Secretary of the Scottish Government) will designate the Director of Operations as the Accountable Officer for the PIRC. Accountable Officers are personally answerable to the Scottish Parliament for the exercise of their functions, as set out in the Memorandum to Accountable Officers for Other Public Bodies. These include:

• ensuring the propriety and regularity of the PIRC’s finances and that there are sound and effective arrangements for internal control and risk management;

• ensuring that effective arrangements are in place to provide assurance on risk management, governance and internal control. The PIRC must set up an audit committee of at least three members, all of whom should be either non-executive directors or independent external members. The Committee should be chaired by a non-executive director and at least one of the committee members should have recent and relevant financial experience. The Committee will provide independent advice and assurance on the effectiveness of the internal control and risk management systems; ensuring that the resources of the PIRC are used economically, efficiently and effectively and that arrangements are in place to secure Best Value and deliver Value for Money as a whole;
• ensuring compliance with relevant guidance issued by the Scottish Ministers, in particular the SPFM and SG Pay Policy;
• promoting the efficient, economic and effective use of staff and other resources by the PIRC consistent with the principles of Best Value, including, where appropriate, participation in shared services arrangements and ensuring that effective arrangements are in place so that the NDPB acts corporately in accordance with the priorities set out in the Scottish Government’s statement of corporate expectations;
• ensuring that timely forecasts and monitoring information on performance and finance are provided to the Scottish Government; that the Scottish Government is notified promptly if over or under spends are likely and that corrective action is taken, and that any significant problems whether financial or otherwise, and whether detected by internal audit or by other means, are notified to the Scottish Government in a timely fashion;
• signing the accounts of the PIRC and associated governance statements;
• a statutory duty to obtain written authority from the Commissioner before taking any action which he/she considered would be inconsistent with the proper performance of the Accountable Officer functions. The Accountable Officer should also notify the relevant Portfolio Accountable Officer; and
• ensuring that the sponsor unit receives regular financial updates concerning the management and performance of the PIRC and is informed in a timely manner about any concerns regarding the activities of the PIRC.

16. The Accountable Officer should be fully aware of, and have regard to, the Accountable Officer responsibilities placed upon them, including the statutory duty described above.

Portfolio Accountable Officer’s Responsibilities

17. The Principal Accountable Officer for the Scottish Government will designate the Director General for Education, Communities and Justice (or their equivalent) as the Accountable Officer for the Scottish Government portfolio budget for the PIRC. The responsibilities of a Portfolio Accountable Officer are set out in detail in the Memorandum to Accountable Officers for Parts of the Scottish Administration. He/she is personally answerable to the Scottish Parliament for ensuring that:

• the financial and other management controls applied by the Scottish Government are appropriate and sufficient to safeguard public funds and, more generally that those being applied by the PIRC conform to the requirements both of propriety and of good financial management;
• the key roles and responsibilities which underpin the relationship between the Scottish Government and the PIRC are set out in a framework document - and that this document is regularly reviewed;
• compliance with the framework document is effectively monitored by the sponsor unit;
• effective relationships are in place at Director and Deputy Director level between the Scottish Government and the PIRC in accordance with the strategic engagement principles; and
• there is effective continuous assessment and appraisal of the performance of the Commissioner.

18. The Director for Safer Communities will be responsible for assessing the performance of the Commissioner at least annually.

Scottish Government Director and Deputy Director’s Responsibilities

19. The Director for Safer Communities and Deputy Director for Safer Communities (or their equivalents) have responsibility for overseeing and ensuring effective relationships between the Scottish Government and the PIRC, which support alignment of the PIRC business to the Scottish Government’s Purpose and National Outcomes and high performance by the PIRC. They will be supported by a sponsor unit in discharging these functions who are responsible for the day to day liaison with PIRC.

Sponsor Unit’s Responsibilities

20. The SG sponsor unit for the PIRC lies within Safer Communities Division or its equivalent. It is the normal point of contact for the PIRC in dealing with the Scottish Government. The unit, under the direction of the Deputy Director, is the primary source of advice to the Scottish Ministers on the discharge of their responsibilities in respect of the PIRC and undertakes the responsibilities of the Portfolio Accountable Officer on his/her behalf. The unit will be responsible for establishing and maintaining regular dialogue between Scottish Government and the PIRC Executive Team and Heads of Department Group, acting as the main point of day to day contact between the Scottish Government and the PIRC. This will include assisting PIRC to liaise with SG shared services where appropriate. Specific responsibilities include:

• The sponsor unit will meet with the PIRC formally every quarter to discuss performance and on-going business. These meetings will take place at the PIRC’s Hamilton offices and SG offices alternately with the Commissioner and Deputy Director of Safer Communities Division (or a nominated deputy) chairing respectively. The aim is to distribute the agenda and papers to attendees no later than one week in advance of the performance meeting.
• In addition, the sponsor unit will liaise with the Executive Team and Head of Department Group to discuss any ad-hoc issues and general overview of business.

• discharging sponsorship responsibilities in line with the principles and framework set out in the document Strategic Engagement between the Scottish Government and Scotland’s NDPBs and ensuring that sponsorship is suitably flexible, proportionate and responsive to the needs of the Scottish Ministers and the PIRC;
• ensuring that appointment of the Commissioner is made timeously and where appropriate in accordance with the Code of Practice for Ministerial Appointments to Public Bodies in Scotland;
• working with PIRC to ensure alignment of its strategic priorities and annual plans to the National Performance Framework;
• supporting regular senior level engagement with the PIRC which ensures a shared understanding of priorities to inform its strategic and annual planning;
• promoting the PIRC within the Scottish Government and ensuring that it is treated as a key stakeholder holder in the development of policy;

• proportionate monitoring of the PIRC’s activities through an adequate and timely flow of appropriate information, agreed with the PIRC, on performance, budgeting, control and risk management;
• addressing in a timely manner any significant problems arising in the PIRC, alerting the Portfolio Accountable Officer and the responsible Minister(s) where considered appropriate;
• ensuring that the priorities of the PIRC and the risks to it are properly and appropriately taken into account in the Scottish Government’s risk assessment and management systems; and
• informing the PIRC of relevant Scottish Government policy in a timely manner.

Internal Audit

21. The PIRC shall:

• establish and maintain arrangements for internal audit in accordance with the Public Sector Internal Audit Standards and the Internal Audit section of the SPFM;
• set up an audit committee, in accordance with the Audit Committees section of the SPFM, to advise the PIRC Accountable Officer;
• forward timeously to the Scottish Government the audit charter, strategy, periodic audit plans and annual audit assurance report, including the PIRC Authority Head of Internal Audit opinion on risk management, control and governance and other relevant reports as requested; and
• keep records of, and prepare and forward timeously to the Scottish Government an annual report on fraud and theft suffered by the PIRC and notify the Scottish Government at the earliest opportunity of any unusual or major incidents.

22. The Scottish Government’s Internal Audit Directorate has a right of access to all documents held by the PIRC internal auditor, including where the service is contracted out. The Scottish Government has a right of access to all the PIRC records and personnel for any purpose, excluding investigations or complaint handling review casework.

External Audit

23. The Auditor General for Scotland (AGS) audits, or appoints auditors to audit, the PIRC annual accounts and passes them to Scottish Ministers who shall lay them before the Scottish Parliament, together with the auditor’s report and any report prepared by the AGS. For the purpose of audit the auditors have a statutory right of access to documents and information held by relevant persons. The PIRC shall instruct its auditors to send copies of all management reports (and correspondence relating to those reports) and responses to the Scottish Government.

24. The AGS, or examiners appointed by the AGS, may carryout examinations into the economy, efficiency and effectiveness with which the PIRC has used its resources in discharging its functions. The AGS may also carry out examinations into the arrangements made by PIRC to secure Best Value. For the purpose of these examinations the examiners have a statutory right of access to documents and information held by relevant persons. In addition, the PIRC shall provide, in contracts and any conditions to grants, for the AGS to exercise such access to documents held by contractors and sub-contractors and grant recipients as may be required for these examinations; and shall use its best endeavours to secure access for the AGS to any other documents required by the AGS which are held by other bodies.

Annual Report and Accounts

25. The PIRC must publish an annual report of its activities together with its audited accounts after the end of each financial year and publish by the end of December each year. The annual report must cover the activities of any corporate, subsidiary or joint ventures under the control of the PIRC. It should comply with the Government Financial Reporting Manual (FReM) and outline the PIRC’S main activities and performance against agreed objectives and targets for the previous financial year.

26. The accounts must be prepared in accordance with relevant statutes and the specific accounts direction, (including compliance with the FReM) and other relevant guidance issued by the Scottish Ministers. Any financial objectives or targets set by the Scottish Ministers should be reported on in the accounts and will therefore be within the scope of the audit. Any subsidiary or joint venture owned or controlled by the PIRC shall be consolidated in its accounts in accordance with International Financial Reporting Standards as adapted and interpreted for the public sector context.

27. The draft report should be submitted to the Scottish Government for comment and the draft accounts for information by the end of September each year. Whilst the statutory date for laying and publishing accounts audited by the AGS is by 31 December, following the close of the previous financial year, there is an expectation on the part of Scottish Ministers that accounts will be laid and published as early as possible. The accounts must not be laid before they have been formally sent by the AGS to Scottish Ministers and must not be published before they have been laid. The PIRC shall be responsible for the publication of both the report and accounts e.g. on the PIRC website.