Progress report from the Director of Internal Audit

Report: 6
Date: 05 December 2005
By: Chief Executive and Clerk

Summary

The report summarises the work of Internal Audit for the period April to October 2005.

A. Recommendation

That the progress report be received.

B. Supporting information

Significant planned work

Internal Audit Annual Report 2004/5

1. My Annual Report for the last financial year has now been issued to MPA members and senior MPS police officers and police staff.

2. In general we concluded that the improvements in controls in MPS systems over the previous three years had not been sustained in 2004/5.

Audits from April to October 2005

3. The trend from our audits for the first half of this financial year shows a clear improvement in MPS systems over results in 2004/5, both for systems audits and where follow-up reviews have been conducted. The three completed High-Risk audits to date have all been rated at 2 (a satisfactory level of internal control). Follow-up audits of high-risk systems have generally improved, except for police staff overtime, where we concluded significant improvement was still needed.

4. We are on target to achieve 90% of our audit programme for the year.

BOCU and OCU audits

5. Since 1 April, we have completed audits of Anti-Terrorist Branch (SO13), Professional Standards (DCC8), Hackney, Tower Hamlets, Serious and Organised Crime (SCD7) and Greenwich. Fieldwork is underway in Ealing and Haringey and we will shortly start work at Barking, Dagenham and Newham.

6. These audits are designed to evaluate controls in basic business, financial and computer systems at BOCU/OCU level.

Help and advice

Police officer overtime

7. We have worked jointly with MPS ICG to review current weaknesses and have provided recommendations for improving controls over police officer overtime. We have also provided considerable support and assistance to the MPA Members Scrutiny of police officer overtime.

Risk and Control Awareness Training

8. We gave a presentation to BOCU Business Managers on control issues at the specific request of TPHQ’s manager for Business Support. Our presentation was clearly appreciated by those who attended the event.

9. We also recently ran a seminar for senior staff at Havering BOCU from which we have also had very positive feedback.

10. We are currently exploring ways of highlighting issues for BOCUs through the arrangements Professional Standards have for bringing matters of concern to the attention of senior BOCU management.

Major outsourcing programme

11. We have continued to provide help and advice to each of the Action Groups and to senior management on request.

Crime Property System

12. We have remained concerned about significant weaknesses in the crime property system both at PFI sites and elsewhere. We have regularly found poor controls and missing money and property. We are advising the Property Processes Review Project and continue to provide local advice to OCUs and BOCUs. Currently we have two on-going BOCU investigations where property and money has gone missing.

Progress with investigations

13. We have taken on thirty-five new cases since 1 April 2005. This is consistent with the pattern from previous years. Currently we have thirty-six live cases under investigation, either jointly with Professional Standards or on our own.

14. Our investigations are split evenly across the main areas of business in the MPS.

15. In my last report I drew attention to an estate related issue. This work involved MPA premises occupied by an outsourced service provider. The sum of £91,000 for unpaid rental and utilities work has now been recovered. MPS Property Services Directorate is continuing to work towards securing a market level of rental for two properties.

16. I also reported that we were involved in two major investigations that are requiring considerable resource but at that time we were unable to provide details. One of the enquiries is making good progress and has identified substantial systematic fraud and waste. We are working closely with the appropriate MPS Director to stop further fraud and waste and identify those responsible. In the second case a police officer has appeared in court and pleaded guilty to nine counts of false accounting and has asked for twenty-three further matters to be taken into account. We are continuing to press the MPS to take appropriate steps to deal with the systematic issues this case highlighted.

17. We have commenced a new significant enquiry into the procurement of an item of specialised equipment to support operational policing. Our investigation has identified that the first batch of equipment failed to work and the second batch is not fit for purpose and has had to be taken out of operational use. Enquiries are continuing to establish how this situation happened and identify the individuals accountable. We are working closely with the appropriate MPS Director.

18. The National Fraud Initiative 2004, the data matching exercise run by the Audit Commission, has identified far fewer cases than in previous exercises and it has also generated considerably less requests for supporting data from local authorities.

Liaison with MPS Risk Management, Inspection and Review activity

19. We are working well with the new Risk Manager and are taking an active role in supporting initiatives to co-ordinate inspection and review work. I welcome the MPS initiative in improving the progression of accepted high-risk audit recommendations.

External liaison

20. Our programme of work in 2005/6 was for the first time prepared with the full knowledge of the Audit Commission and HMIC in an attempt to ensure maximum co-ordination and lack of duplication of work between the two major external reviewers of the MPS and ourselves. We are currently undertaking a joint review of MPS Information Systems strategy with the Audit Commission. We have continued to have a good working relationship with both bodies throughout the year.

C. Race and equality impact

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.

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

There are no financial implications arising from this report.

E. Background papers

None

F. Contact details

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

For information contact:

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

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