MPA Internal Audit plan for April 2008 to 31 March 2009

Report: 6
Date: 7 December 2007
By: the Director of Internal Audit

Summary

 This report and associated appendices sets out the proposed plan for the use of Internal Audit resources from 1 April 2008 to 31 March 2009.The annual plan is based on an updated Audit Needs Assessment and Risk Analysis for the next five years ahead.The Director of Strategic Finance for the MPS and the MPA Treasurer are content with the proposed annual plan submitted to the Corporate Governance Committee.

A. Recommendation

That

1. members approve the proposed use of Internal Audit resources and note the summary calculation of audit need and comparison to planned work set out in Appendices 1 and 2; and

2. approve the programme of Internal Audit work, set out in Appendices 3 to 6.

B. Supporting information

Purpose and basis of the annual Internal Audit plan

1. The plan is designed to ensure that I have sufficient information to form an opinion on the adequacy of the MPA/MPS control framework. That opinion will feed into the Authority’s Governance Statement for the published accounts for 2008/9, as well as providing a degree of assurance for the MPA and external reviewers.

2. My opinion on control is based on risk scores given at the end of each systems review (including operational audits of local systems). The scores are on a scale of 1 to 5, where 1=excellent and 5=unacceptable. The scoring system also includes the results of any significant audit investigations, major advisory work on developing systems and other relevant professional review activity of the MPS.

3. The Director of Strategic Finance and the Treasurer have agreed the draft plan. I have also sought the views of Management Board members, the Chair and other senior members of the Authority and consulted with HMIC and the Audit Commission in drawing up the plan.

4. Our audit plan is risk based and the highest current risk determines those systems that will be audited in year. Our risk model takes into account a number of factors, including financial values, impact on operational activities, likelihood of a major system failure and the length of time since the last audit. We also refer to the MPA and MPS risk registers to ensure that there is parity in our assessment of risk.

5. Appendix 1 and Appendix 2 highlight the calculated need and the resources available to meet the need. In summary:

• 80% of need will be met for systems advice and routine audits (3247 audit days out of 4084)
• 80% of the need for investigative work will be met (1766 days out of 2210)
• 80% of overall need should be met with this plan

6. Appendices 3 to 5 outline systems audits, our follow up programme and systems development work. In summary:

• Key systems audits include: Management of Outsourced Financial Services, Management of Outsourced Property Services, Vehicle Fleet Management, Use and Control of Consultants, Police Specialised Training, Budget Preparation, Approval and Monitoring, Security Vetting and Clearance, Information Records Management and Corporate Data Warehousing.
• A significant part of the follow up programme focuses on tracking progress made in implementing our B/OCU recommendations and following up those audits conducted on key financial systems.

7. Appendix 6 highlights our B/OCU review programme. The number of reviews in the B/OCU programme has been set at six for next year to reflect the emphasis on follow-up reviews. We will also be carrying out a significant amount of systems development work at a local level to support the Transforming HR and Finance and Resource Modernisation Programmes. We also intend to review the Olympics OCU.

Key themes of our work for 2008 – 2009

8. Continue to work with MPS senior management to improve the internal control environment in the MPS.

9. Increase our involvement in the provision of systems development and control advice providing control advice at the earliest opportunity as key systems develop. Areas for next year include, Corporate Governance Framework, the Olympics, Transforming HR, Finance and Resource Modernisation Programme, Procurement Framework, Met Modernisation Programme and Electronic Records Management. We will also continue to support members by attending and advising the MPA HR, IS/IT, Procurement and Estates Oversight Groups.

External Liaison

10. We will be maintaining and further developing our links with those that have responsibility or a key interest in the review of MPS activities. We will also continue to contribute to the development of auditing in the police environment. This will be achieved through:

• Increased and visible co-ordination with Audit Commission and HMIC.
• Membership of Inspection and Liaison Groups – internal and external reviewers.
• Attending the GLA Heads of Audit Group – working with other Heads of Internal Audit in the GLA family to benchmark and discuss developments in Internal Audit.
• Working in liaison with Home Office Internal Audit – establishing protocols around the audit of shared services.
• DIA Chairing the National Group of Police Authority Auditors, DDIA attending the Northern Group. Continuing our work to help establish agreed auditing standards in the national policing environment.
• Increasing liaison with the Police Authority Treasurers Group to highlight issues around internal control and the provision of internal audit services in the policing context.

Fraud investigation and liaison

11. We will build on our anti fraud and corruption drive that commenced this year. Continuing to raise awareness on identifying and dealing with fraud and corruption and the steps that can be taken to prevent it.

C. Race and equality impact

1. Internal Audit continues to reflect the diverse community within which the MPS and MPA operate. All field auditors and investigators have received appropriate training in equality and diversity issues and their performance within the MPS is monitored.

2. The plan of work is designed to provide as wide a range of coverage of MPS staff and systems as is possible and practicable.

D. Financial implications

The agreed budget for 2008/09 has been determined in line with Internal Audit resources required to deliver the approved Annual Programme.

E. Background papers

None

F. Contact details

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

For information contact:

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

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