High-risk audit recommendations

Report: 8
Date: 10 December 2009
By: Director of Resources on behalf of the Commissioner

Summary

This report updates Members in relation to the outstanding high-risk MPA Directorate of Audit, Risk and Assurance (DARA) recommendations, as at 13 November 2009 - now reduced to 9 outstanding to MPS (from 21 reported to the Committee in June 2009).

A. Recommendation

That members note the status of all outstanding high-risk recommendations made in relation to MPS control systems by the Directorate of Audit, Risk and Assurance.

B. Supporting information

1. This report summarises the present status of accepted high-risk recommendations made by the Directorate of Audit, Risk and Assurance and details the ongoing process by which the MPS responds to audit recommendations.

Progress report on high-risk audit recommendations

2. Since the last report to Corporate Governance Committee on 14 September 2009, further progress has been made by the MPS in implementing a number of recommendations. Detail of each of these high risk audit recommendations can be found in Appendix 1 but members attention is specifically drawn to the following:

1. The notable increase in the implementation of outstanding high risk recommendations relating to SO6 Building Security - Physical and Technical Guards - whereby the final six high risk recommendations are all now implemented. Proposals surrounding those recommendations are now embedded in Security Operating Procedures. The Director of Information, in her capacity as chair of the METSEC Programme Board, has recently written to all Management Board members, Senior Designated Officers and Building Security Officers reminding them of their mandatory responsibilities under the MPS policy ‘Security of the Metropolitan Police Estate’.

Current Position

3. There are now nine DARA high-risk recommendations outstanding to the MPS, with a further two outstanding to the MPA Treasurer.

4. The table below highlights the progress in implementing the outstanding recommendations, comparing the current position with that reported to the previous two CGC meetings in June and September 2009.

Table 1: Progress in implementing high-risk DARA recommendations

5. Progress to ensure the outstanding recommendations are addressed as a high priority continues to be co-ordinated by the Quality Assurance Team in Finance Services. A detailed update in respect of each high risk recommendation can be found at Appendix 1 (with exempt items at Appendix 2) of this paper. Some specific points of note are as follows:

1. The high-risk recommendations relating to the under funding of Dedicated Security Posts (DSP) for Royalty and Specialist Protection and for Diplomatic Protection are identical and fall under the remit of the Specialist Operations Business Group. Action to resolve the recommendations now rests with MPA Treasurer. However further correspondence has recently (early November) been received from the Home Secretary indicating that the Home Office need to do some further work on the options for reform of the DSP Grant mechanism itself and that both the MPS and MPA have made constructive suggestions about this. The Home Secretary is sympathetic to the MPS request to have additional funds in this financial year to cover the shortfall in inflation provision on the existing grant. The Home Office will continue its dialogue with the MPS and MPA to come up with proposals to improve the present MPS mechanism.
2. With regard to the two High Risk audit recommendations made as part of the Security Vetting and Clearance audit. A decision is awaited from ACPO as to whether the MPS will conduct part of the National Security Vetting process on behalf of the police service. Given this uncertainty on future arrangements and the good performance MPS Management Board recently agreed that the two vetting units in SO and SCD should remain separatefor the time being. Commander Pountain (SCD) continues to lead a review of MPS Vetting to include implementation of audit recommendations.

Process by which the MPS responds to audit recommendations

6. The Audit and Inspection Protocol agreed between the MPS and the audit and inspection services in November 2008 enables all parties to work together to enhance delivery and response to audit and inspection programmes and ensure that maximum benefit is achieved. The protocol has now been reviewed and MPS Finance Services is currently assessing the detail of comments received from customers. A refreshed Protocol, subject to agreement from all parties, will be published in February 2010 in time for commencement of the 2010/11 Audit and Inspection programme in April 2010.

7. The outstanding high-risk recommendations are reported on a quarterly basis to the MPS Performance Board and the External Audit and Inspection Partnership Meeting attended by representatives from DARA, Audit Commission and HMIC. Additionally, the new Director of DARA is updated through meetings with Finance Services in relation to the development of audit recommendation tracking and reporting.

C. Race and equality impact

There are no direct implications on equality and diversity arising from this report.

D. Financial implications

There are no immediate financial implications from this report.

E. Legal implications

1. Under regulation 4 of the Accounts and Audit Regulations 2003, as amended by the 2006 Regulations, the MPA are required to have a sound system of internal control, which facilitates the effective exercise of that body’s functions, which includes arrangements for the management of risk, and conduct an annual review.

2. There is also a legal requirement under the Regulations for a Committee to review the effectiveness of the system of control. The Corporate Governance Committee has delegated powers in respect of the internal system of control procedures including risk management.

3. The Civil Contingencies Act 2004 also places a number of statutory duties upon the Police Service to assess risk of an emergency occurring and to maintain plans for the purpose of responding to an emergency.

4. This report assists the MPA’s/MPS’ compliance with the requirements referred to above.

F. Background papers

None

G. Contact details

Report author: Paul James, Director of Finance Services

For information contact:

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

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