Internal Audit progress report

Report: 8
Date: 14 September 2007
By: Director of Internal Audit

Summary

The report summarises the work of Internal Audit for the period April to September 2007.The report 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 2007.

A. Recommendation

That

1. members note the progress made in achieving the 2007/08 Internal Audit Plan; and
2. note the current Internal Audit evaluation of the adequacy and effectiveness of internal control in the MPS.

B. Supporting information

Progress against the 2007/08 Internal Audit Plan

1. Work is underway on 62% of the systems audit programme and we are aiming to achieve the 90% target for completion of the systems audits to report stage. We have, however, had an auditor vacancy for the first half of the year and this may impact on our ability to deliver the plan. I will report further on progress at the next meeting.

2. We have finalised three audits of local Borough/Operational Command Unit (B/OCUs) financial and business systems. Reports are at draft stage for SCD5 Child Protection, SCD26 Operational Information Services, the Palace Of Westminster, TPHQ, Kingston and Waltham Forest. Fieldwork is underway in Croydon and Kensington and Chelsea BOCUs. Further audits of Lewisham and Camden BOCUs are planned for the second half of the year. We are also on target to complete our extensive follow up programme for B/OCUs.

3. We are currently advising on twenty-three of the twenty-eight areas of work published in our systems development programme at the start of the year. Work is due to commence in line with the MPS programme for development for the remaining five areas.

4. Three final follow-up reports have been issued with a further twelve having reached draft report stage and fourteen currently in progress. Forty-six follow-ups are planned for the second half of the year.

Opinion on the adequacy and effectiveness of MPS systems

5. In my Annual Report for 2006/07 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 2007/08 the equivalent score is 2.8 overall (3.2 systems audits and 2.0 follow-ups).

6. Although we are only part way through the year and the scores are based on a relatively small number of reviews, it is encouraging that the follow up audits are indicating an improvement in internal control. We are continuing to work with MPS senior management to do all that we can to help ensure that this trend continues.

Current investigations

7. We have taken on thirty-eight new cases since the 1 April 2007. This is consistent with the higher end of the pattern of earlier years. Whilst the investigations are spread across business areas of the MPS recurring features of many of the cases remains the procurement process and losses from property stores. We have received only one call on the Right Line, the MPS telephone hotline for reporting wrongdoing, which may indicate a lack of awareness of this facility. We have raised this issue with the MPS Professional Standards Directorate who are taking steps to refresh the promotion of the Right Line.

8. Our work on the property elements of Safer Neighbourhoods is substantially complete. The Deputy Commissioner has responded to our report and arrangements have been put into place to complete the remainder of the programme.

9. Following positive and productive discussions with the Directorate of Information, significant progress is now being made to address our previous concerns on the MetTime, MetaFor, MOPI and Crimint + projects.

10. Work on resolving the data matches from the 2006 National Fraud Initiative has continued. A small number of pension payments continuing after the death of the pensioner have been identified and are being resolved. Information has been provided to a number of local authorities in support of suspicious benefit claims made by MPA/MPS employees. We are working our way through the 26,000 matches supplied by the Audit Commission relating to creditor data with the considerable assistance of Directorate of Finance colleagues. The bulk of the matches are being eliminated as they are due to minor data quality errors. I will report on the outcome of this work at the next meeting.

11. In the next three months I anticipate that the largest single demand on our investigative resources will be directed towards defending a claim against the Authority in respect of the MPS vehicle removal contract that failed in July 2001.

Current advice and review activity

12. We advised on the revision of the Authority’s Contract and Financial Regulations and are now working with the MPS in developing the systems to support the implementation of the Regulations. We continue to advise on the Transforming HR Programme and on the Modernisation of Finance and Resources Management and have also attended workshops for the revised MetaFor project.

13. We are also supporting members in their scrutiny role with audit senior management representatives attending the HR, IT and Property Oversight Working Groups.

14. I have had several meetings with senior managers in the MPS to discuss the development and enhancement of the systems supporting procurement activity and hope to see significant improvement in this area as the year progresses.

15. We have issued the following final systems audit and follow up reports since the publication of my Annual Report:

Systems Audit Reports

• Police Officer and Staff Allowances and Expenses
• Public Relations Funding and Control
• Crime Reporting Information System
• Bexley BOCU
• Islington BOCU
• SO2 Protective Security OCU

Follow Up Audit Reports

• Systems Supporting Cash Seizures
• Road Accident Reports and Intelligence
• SCD26 Operational Information Services OCU

Staffing

16. I currently have thirty-five staff in post with one auditor and one administrative support officer vacancy. We are hoping to fill the auditor vacancy in November 2007 following a recent recruitment campaign.

Liaison with MPS Risk Management, inspection and review activity

17. 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

18. 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 carried out in 2007/08.

19. I regularly meet with the other heads of audit in the GLA family to discuss issues around commonality of reporting and comparing internal audit performance. In May of this year I also hosted the first national conference of Police Authority Auditors. This event included presentations on key developments in auditing in the police environment, discussions around strategy and approach and developing measures for benchmarking performance and was well received and will now be held on an annual basis.

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 to be within the Internal Audit budget allocation 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

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