Directorate of Audit, Risk and Assurance Progress Report

Report: 11
Date: 7 July 2011
By: Director of Resources on behalf of The Commissioner

Summary

This report summarises the work carried out by the Directorate of Audit, Risk and Assurance (DARA) in the first quarter of 2011/12 and the key areas of activity planned for the second quarter.

A. Recommendation

That members note: the work undertaken by the Directorate of Audit, Risk and Assurance in the first quarter of the year and the key areas of activity planned for the second quarter.

B. Supporting information

Work carried out in the 1st Quarter 2011/12

1. In the first quarter of this year we have finalised a number of audit reports that feature in my annual report for 2010/11. A further 29 audits are at report stage and 16 are in progress, including 11 from the new annual programme of work agreed for this year.

2. Our advisory work on a number of key developing systems within the MPS continues, these include; the finance modernisation programme, MetTime, business interests control framework, asset management tracking, and the language programme.

3. We are also finalising our reports on the Westminster BOCU and the Command and Control Centre following discussions with the OCU Commanders and the appropriate senior managers within Territorial Policing.

4. Our counter fraud team continue to investigate 58 cases of potential irregularities and/or fraud, 28 of which have been started this year. The increased number of new cases is primarily as a result of work carried out under the National Fraud Initiative. We received 12,951 data matches from the Audit Commission in January 2011. Our work with MPS colleagues to resolve the matches is progressing well and we plan to complete the review by December 2011 in advance of the Audit Commission deadline of March 2012.

5. Work continues on our proactive investigative programme to analyse financial systems and transactional data on a regular basis. Currently, we are reviewing and analysing the MPS use of the Government Procurement Card.

Key Reviews Planned for the 2nd Quarter

6. In the second quarter of the year we plan to issue final reports for; Olympics and Paralympics budgetary control framework, information sharing governance framework, management of outsourced IS/IT contracts, Met Intelligence Bureau OCU, CRIS resilience, Command and Control resilience, and secure intelligence systems. Our follow up reports on the resourcing and management of specials, vetting and security clearance, police officer and staff pensions, and data protection and FoI control and enforcement will also be finalised.

7. Our risk and assurance audit reviews of; dangerous dogs – funding and management, olympics procurement activity, police/police staff support inside the UK, gifts and hospitality and SO20 counter terrorism protective security command, are due to reach report stage in the next quarter. Key audits due to commence include; the change management control framework, creditors payments system and benefits realisation.

8. We will be focusing our advisory work on two key aspects of the MPS major Change Programme, TP Development and Finance Modernisation. We will also continue to advise on establishing the appropriate governance arrangements under the proposals for the creation of the Mayor’s Office for Policing and Crime (MOPC).

9. The Audit Commission will be reporting their findings following the completion of the recent fraud awareness workshops, which will be used to inform future fraud prevention activity.

Staffing

10. The Head of Risk and Compliance Audit is now in post and a new Audit Manager joined the Directorate at the end of March 2011. We are currently carrying one vacancy at Risk and Assurance Auditor level.

Shared Internal Audit Services

11. We are now providing the internal audit service to the GLA and London Fire Brigade has recently requested that we develop a shared audit service arrangement with them from 1 April 2012. This has the potential to create financial savings and provides an opportunity to optimise the use of all the available professional and specialist audit skills.

C. Other organisational and community implications

Equalities impact

1. The MPA’s commitments to equality and diversity are considered in all activities carried out by the Directorate of Audit, Risk and Assurance. The conduct of our staff is also monitored through questionnaires to auditees on a range of matters related to audit and investigative work. All field auditors and investigators have received appropriate training in equality and diversity issues and their performance within the MPS is monitored. The DARA work plan is designed to provide as wide a range of coverage of MPS staff and systems as is possible and practicable.

Met Forward

2. Completion of the Directorate of Audit, Risk and Assurance annual work programme, which is designed to support all strands of MET Forward and in particular MET Standards, is making a key contribution to fighting crime, securing value for money and increasing confidence in policing

Financial implications

3. The cost of DARA activities is met within the MPA’s directly managed budget. There is a risk of loss, fraud, waste and inefficiency if the Directorate of Audit, Risk and Assurance recommendations are not effectively implemented. Savings and recoveries made enable funds to be better directed towards core policing activities.

Legal implications

4. There are no direct legal implications arising from the report.

Environmental implications

5. There are no direct environmental implications arising from the report.

Risk implications

6. The report highlights areas of effective management of risk and areas for further improvement identified as a result of DARA review activity.

D. Background papers

None.

E. 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

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