Directorate of Audit, Risk and Assurance 2010/11 Annual Plan – strategic approach

Report: 11
Date: 10 December 2009
By: Director of Audit, Risk and Assurance

Summary

This report sets out the proposed strategic approach for the 2010/11 annual plan for the Directorate of Audit, Risk and Assurance. The detailed work programme will be based on this approach and submitted to this Committee in March 2010 for consideration and approval.

A. Recommendation

That members Approve the strategic approach to the 2010/11 annual plan for the Directorate of Audit, Risk and Assurance. 

B. Supporting information

1. The 2010/11 annual plan will reflect a new strategic direction for Internal Audit now the Directorate of Audit, Risk and Assurance. Emphasis will be placed on moving towards a risk based audit approach [1] and dedicating resources to reviewing and advising on areas of high risk and cost to the MPA and the MPS.

2. Our programme of work will support the Authority’s strategic plan laid down in Met Forward and the strategic priorities and objectives of the Policing London Business Plan 2010-13. There will be a focus on evaluating key risks to achieving strategic priorities and objectives and providing the necessary independent and objective assurance to the Authority and the MPS.

3. The plan will also reflect the significant level of change that is taking place in the MPS in responding to the increased demand to deliver high quality services at reduced cost.

4. Overall the plan will enable me to provide the required annual opinion on the adequacy of the MPA and MPS internal control environment and give greater assurance on the effectiveness of risk management.

Key Elements of the 2010/11 Annual Plan

5. Risk based reviews - in determining our programme of risk based reviews we will take account of the level of risk maturity in the MPS. I anticipate that this part of our work programme will be based on a combination of our assessment of risk and that of the MPS.

6. Risk management - we are taking a direct lead for the Authority in scrutinising MPS risk management. This will involve conducting an annual review and working in liaison with the MPS strategic lead for risk management to inform our assessment and facilitate improvement. We will also review and advise on the effectiveness of the Authority’s risk management process.

7. Procurement and contract audit - we will dedicate a resource to working with the Procurement Services Department to continue to strengthen the control environment and effective management of key risks in this area. CIPFA’s recent guidance on contract management advocating a real time audit approach will form the basis for this work.

8. IS/IT specialist reviews - a specialist resource will be used to conduct a more in depth review of key risks and controls in IS/IT. This will provide a greater level of assurance to the MPA and MPS in this key area of the business.

9. Advising change programmes and projects – we will focus on ensuring effective controls are in place to mitigate risks within the new and developing systems. We will also provide assurance to the MPA and MPS on the effectiveness of programme and project management.

10. B/OCU Reviews – we will adopt our revised approach which is primarily based on reviewing the effectiveness of the management of risk and control at a local level.

11. Counter fraud activity – we have conducted a fraud risk assessment and are using this to develop a fraud prevention strategy. In liaison with the MPS we will be actively promoting a fraud prevention and awareness programme. We will also continue to dedicate a resource to fraud investigation. Increased emphasis will be placed on identifying and understanding the risk and compliance issues leading to internal fraud and this will inform our risk review and fraud prevention activity.

12. Professional standards - the MPS is driving forward the professional standards agenda promoting accountability, integrity and ethical standards. We will identify areas of concern, advise on risk and control issues, provide assurance and contribute to organisational learning.

13. Analytical Analysis – this will involve interrogating and analysing key financial systems identifying potential areas of concern and helping to provide assurance on the management of high cost and sensitive areas.

14. Material Systems – we will continue to review key MPS financial systems and test key controls. This activity directly supports the work of external audit and should result in a reduced level of external audit coverage.

15. Met Standards - we have a key role in supporting all 8 strands of Met Forward but in particular in liaison with the MPA Planning and Performance Team we are taking the lead on Met Standards. We are to review the effectiveness of the MPS internal review functions and provide independent assurance on the achievement of Met Standards.

Consultation and Review

16. I am currently consulting with the MPS management board, senior managers in the MPS and MPA and members to identify potential areas for audit activity. This will be supplemented by a review of the MPS Corporate and Business risk registers and discussions with middle managers to ensure we produce a dynamic work programme based on a current assessment of risk.

17. The detailed plan will be submitted for Committee approval in March 2010. I also intend to revisit the plan in consultation with MPS management board and members on a quarterly basis to ensure that we are responding appropriately to emerging issues and risk. Any subsequent proposed amendments to the plan will be reported as part of my quarterly updates.

18. In completing the plan there will also be an increased focus on working in collaboration with the MPS to facilitate improvement in the management of risk and control.

Resources

19. I am currently reviewing the organisational structure and resources that I will need to deliver the plan and provide an adequate level of assurance to the MPA and MPS. The outcome of this review will also be reported to Committee in March 2010.  

C. Race and equality impact

1. The MPA’s commitments in relation to equality and diversity are considered in all aspects of work conducted by the Directorate of Audit, Risk and Assurance. An impact assessment will form part of the review of the DARA organisational structure and resources.

2. We monitor the behaviour of our staff through questionnaires to auditees on a range of matters related to audit and investigative work.

D. Financial implications

The plan will be delivered within the budget for the Directorate of Audit, Risk and Assurance approved by the Authority.

E. Legal implications

None given.

F. Background papers

• None

G. Contact details

Report author: Julie Norgrove, Director Audit, Risk and Assurance

For information contact:

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

Send an e-mail linking to this page

Feedback