Progress report from the Director of Internal Audit

Report: 9
Date: 16 March 2006
By: Chief Executive and Clerk

Summary

The report summarises the work of Internal Audit for the period November 2005 to February 2006.

A. Recommendation

That the progress report be received.

B. Supporting information

Significant planned work

Audits from November 2005 to February 2006

1. The trend from our audits throughout this financial year continues to show an improvement, albeit more marginal than previously reported, in MPS business systems over results in 2004/5, both for systems audits and where follow-up reviews have been conducted.

2. We remain on target to achieve 90% of our audit programme for the year.

BOCU and OCU audits

3. Since 5 December 2005, we have completed audits of Haringey, Ealing and Barking & Dagenham. Fieldwork is underway in Heathrow (SO18), Wandsworth, Newham and SCD5 Child Protection and we will shortly start work at Southwark. We have completed the follow up reviews of Brent, Enfield, Havering and Hillingdon. A follow up review of Lambeth will commence shortly.

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

Help and advice

Risk and Control Awareness Training

5. We have issued a revised Internal Audit Advice Note 4 on business and financial controls in local command units. Recent internal audit reviews had highlighted a number of recurring problems and this Advice Note addressed to OCU Commanders and business and resource managers is intended to help BOCUs and OCUs to improve by avoiding or overcoming these weaknesses.

6. Staff from Internal Audit have continued to assist in the Financial Awareness Training sessions by giving presentations on risk and control which have received very positive feedback from attendees.

Major outsourcing programme

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

Progress with investigations

8. We have taken on fifty-five new cases since 1 April 2005. This is consistent with the pattern from previous years. Our investigations are split evenly across the main areas of business in the MPS.

9. In my last report I drew attention to a case we have commenced 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. The indications are that in excess of £2.7 million has been spent on or committed to this equipment and the contract regulations of the Authority have not been observed. We are making good progress in establishing how this situation arose and identifying those involved. We are continuing to work closely with the appropriate MPS Director. The Authority is at risk of litigation in this matter from both the supplier of the equipment and an unsuccessful bidder for the work who feels they were improperly excluded.

10. We have been working closely with the Director of Property Services in examining part of the minor works system and have identified an area that at the very least is wasteful and unnecessary expenditure. The £2 million of annual expenditure in this area has largely ceased since our investigations have commenced. Some further enquiries remain to be undertaken.

11. In the coming quarter work will be undertaken to examine procurement of consultancy services across MPS, particularly those involving single tender procurement and contract renewals. A major IT development will also be examined. This additional work will cause some temporary capacity issues and, with my head of investigations, I will be keeping a close eye on our ability to manage the work effectively.

12. Work associated with the National Fraud Initiative 2004, the data matching exercise run by the Audit Commission, is drawing to a close. A small number of serious cases of benefit fraud by MPS personnel are still live and the appropriate authorities are taking criminal action. The Audit Commission has already indicated that the 2006 exercise will cover new areas including all payments to creditors. This will significantly expand the volume of work we have to undertake. The Audit Commission assesses our National Fraud Initiative work as part of the tests they apply when auditing the Authority.

Liaison with MPS risk management, inspection and review activity

13. We continue to work closely with the MPS Risk Manager and are taking an active role in supporting MPS and MPA initiatives to co-ordinate audit, inspection and review work.

External liaison

14. We have continued to work closely with the Audit Commission and as an example, we have recently undertaken a joint review of MPS Information Systems Strategy and Planning.

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, either through appropriate training or, if needed, one-to-one mentoring.

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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