Internal Audit progress report

Report: 9
Date: 15 December 2006
By: Director of Internal Audit

Summary

The report summarises the work of Internal Audit for the period April to December 2006. It also summarises the results of significant Internal Audit work to date and the adequacy and effectiveness of control in MPS systems where Internal Audit has issued final reports since April 2006.

A. Recommendation

That

1. Members note the progress made in achieving the 2006/07 Internal Audit Plan;
2. approve the postponement of two systems audit reviews; and
3. note the current Internal Audit evaluation of the adequacy and effectiveness of internal control in the MPS.

B. Supporting information

Progress against the 2006/07 Internal Audit plan

1. Work is underway on 88% of the systems audit programme and we are aiming to achieve the 90% target for completion of the systems audits to report stage by the end of the year. We do, however, plan to postpone two audits. Senior Management of the Criminal Justice Unit has requested that we postpone our audit of this area until next year due to the significant number of system changes that are due to take place. The scope of our planned audit of Traffic Control and Enforcement is now covered in another area of our work (i.e. our review of the Transport OCU) and does not warrant a separate review.

2. We have finalised thirteen audits of local Borough/Operational Command Unit financial and business systems. We are due to report on Hammersmith, Bexley Heath, Royal Parks and the Palace of Westminster. Fieldwork is underway in Kingston, Islington, the Traffic Criminal Justice Unit, TPHQ and SO2 Business Support. A review of CO4 National Identification Service is planned for the final quarter of the year.

3. We are currently advising on twenty-four of the twenty-seven areas of work published in our systems development programme at the start of the year. Our advice has also been sought in a further eight areas of development during the year.

4. Twenty-two final follow-up reports have been issued with a further twelve having reached draft report stage and ten currently in progress. Seventeen follow-ups are planned for the remainder of the year. However, as a result of some delays in issuing final reports, 45% of the follow-ups in our original programme are now not due until next year (the timing of the review is dependent on the date the final report is issued).

Opinion on the adequacy and effectiveness of MPS systems

5. In my Annual Report for 2005/06 I noted that, on the scale where 1=excellent control and 5=unacceptable control, the MPS had an overall score of 2.9 (3.3 for systems audits and 2.5 follow-ups). At this stage of the year for 2006/07 the equivalent score is 3.0 overall (3.4 systems audits and 2.4 follow-up).

6. Although there is an improvement in the follow up position, the overall score is showing a slight decrease on last year. A high number of BOCU reviews have been completed for the first time this year. We have met with ACTP and his business management team and agreed the way forward for dealing with the control issues arising from our BOCU review work. We hope to report an improved position when our BOCU follow up reviews are conducted.

Current investigations

7. We have taken on forty new cases since the 1 April 2006. This is consistent with the pattern of earlier years. Whilst the investigations are spread across business areas of the MPS a recurring feature of many of the cases remains the procurement process. We have also received five calls on the Right Line, the MPS telephone hotline for reporting wrongdoing.

8. I have previously drawn attention to an investigation into the estate procurement issues surrounding Safer Neighbourhoods. In view of the significant expenditure, the Audit Commission have been monitoring our work closely. A high-level report of the findings is an agenda item for this meeting.

9. We have also examined a number of issues, including recovery contracts, financial forecasts and value for money, concerning the Vehicle Recovery and Examination Service (VRES). A report will be made to the Finance Committee when VRES has completed a review of the business case.

10. We are continuing our examination of a number of IS/IT projects. A recurring feature is the lack of robustness in the procurement process. We have contributed to an MPS Gold Group on another IT matter.

11. We have securely and successfully supplied the Audit Commission with the MPA datasets for use in the 2006 National Fraud Initiative (NFI) exercise and have been complimented on the quality of the datasets supplied. At the end of January 2007 following datamatching, both internally and with other public bodies, we will be supplied with the datamatches for MPA and MPS staff. The matches will be verified and prioritised by Internal Audit and any suspicions of fraud will be investigated. We anticipate getting requests from other public bodies, particularly benefit paying local authorities, for supply of information in suspected cases of fraud they identify from the NFI.

Current advice and review activity

12. We are represented on the Transforming HR Programme Board and will be advising the various work strands during the implementation stage of the programme. In liaison with the MPA Deputy Treasurer, MPS Director Strategy, Modernisation and Performance we are advising on the development of the MPA Corporate Governance Framework in light of the changes proposed by the revised CIPFA/SOLACE Guide that is due to be published in the new year. My deputy and I are also working with senior managers in the covert policing command in developing the control framework around covert policing activities. We continue to advise on the Outsourcing Work Programme, MetHR and the upgrade of the corporate accounting system.

13. I plan to hold a seminar in January 2007 with senior members of the MPS to discuss the current issues around procurement that are causing concern and to agree the way forward. MPS senior management has welcomed this approach.

14. We have issued the following final systems audit and follow up reports since the publication of my last update in September 2006:

Systems audit reports

• Management of PFI
• Hackney BOCU
• Greenwich BOCU
• Wandsworth BOCU
• Barking and Dagenham BOCU
• SO13 Anti Terrorist Branch

Follow up audit reports

• MPA Business and Financial Systems
• Inventories and Asset Registers
• Police Career Management
• Linguists
• Registration, Storage, Disposal and Security of Documents
• Use and Control of Fuel

Staffing

15. I currently have thirty-six staff in post. The one auditor vacancy will be filled in January 2007 following a recent successful recruitment campaign. I also have a senior lecturer from the National School of Government on secondment to MPA Internal Audit to assist in delivery of a number of high-risk audits from the annual audit programme.

Liaison with MPS risk management, inspection and review activity

16. We are continuing to work in liaison with the MPS Director of Risk Management and the internal inspection review bodies. We are actively involved in the Internal Inspection and Review Group aiming to ensure internal review activity is properly co-ordinated and duplication is avoided.

External liaison

17. My deputy represents Internal Audit on the MPS External Inspection and Review Group and we are working with the Audit Commission, HMIC and the MPS Inspectorate to ensure that a co-ordinated work programme of inspection and review activity is produced for 2007/08.

18. I continue to meet with the other heads of audit in the GLA family to discuss issues around commonality of reporting and comparing internal audit performance. We are also due to host a conference for Police Authority Internal Auditors and have met with representatives from the British Transport Police to advise on the further development of their internal audit unit.

C. Race and equality impact

1. Our diverse workforce sets a good example to the MPS. The MPA’s commitments in relation to equality and diversity are considered in all audits and investigations carried out by Internal Audit.

2. We monitor the behaviour of our staff through questionnaires to auditees on a range of matters related to audit and investigative fieldwork. This helps to ensure that any diversity issues are quickly identified and addressed.

D. Financial implications

We are currently forecasting that we will come in on budget at the year-end.

E. Background papers

None

F. Contact details

Report author: Peter Tickner, Director of Internal Audit, MPA.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Send an e-mail linking to this page

Feedback