Internal audit annual report 2007/8

Report: 5
Date: 12 June 2008
By: the Chief Executive

Summary

The report at Appendix 1 summarises the work of Internal Audit for the year 2007/8, gives the opinion of the Director of Internal Audit on the adequacy and effectiveness of control within the MPS, which is that this continues to fall below an acceptable standard. The report also comments on the effectiveness of MPA Internal Audit to meet the requirements of the Accounts and Audit Regulations 2003 (as amended 2006).

A. Recommendation

That

1. the Corporate Governance Committee approves the attached draft Annual Report of the Director of Internal Audit for circulation to all members of the Authority; and

2. confirms that MPA Internal Audit provided an effective audit service to the Authority in 2007/8.

B. Supporting information

1. The report sets out the Director of Internal Audit’s opinion on the adequacy of the control environment, including governance, risk management and internal control within the MPS and MPA for the reporting period. The report also includes, at annex A, summaries of each audit completed with an update from senior line management commenting on the summary and indicating progress in implementing the recommendations, follow-up reviews and summaries of key areas of audit advice. Annex 2 to the Report gives a brief summary of investigations undertaken during the year.

2. Key points to note from the draft Annual Report include:

• The Director of Internal Audit concludes that the adequacy and effectiveness of internal control in the MPS falls below an acceptable standard. Generally Internal Audit has found adequate and effective operating procedures within the MPS but tests and investigations found that in a number of high-risk systems controls were not being operated effectively.
• On control weaknesses the Director of Internal Audit highlights the lack of accountability and responsibility for adequate controls that contributed to the issues around the misuse of AMEX cards by police officers, contracts where procurement activity has been too late or urgent tender action has been necessary and the lack of an effective and embedded system for Risk Management.
• The control environment is improving in a number of areas. Finance and planning has been re-aligned, a scheme of delegation was introduced in October 2007, there have been improvements in the purchasing side of procurement and improvements in controls over covert policing have continued from last year. The IS/IT, HR, Estates and Procurement Oversight Groups have also continued to improve the effectiveness of the scrutiny and monitoring role of the MPA in key business support areas.
• The implementation rate of accepted audit recommendations improved from 66% in 2006 to 72% in 2007.
• Internal Audit achieved completion of 85% of the planned systems audit work against a target of 90%.
• The investigative arm of internal Audit, the Forensic Audit Branch, contributed to savings or losses stemmed during the year of £4.3m and recoveries of £0.3m. Cumulative recoveries and savings or losses for the last five years total £24m.
• The Internal Audit customer satisfaction rate at 88% is significantly higher than last year and exceeded the 80% target. The highest scores were 98% satisfaction that there was no discriminatory behaviour and 95% satisfaction with the way audits were conducted. There was also improved satisfaction with terms of reference for audits and the clarity of audit reports (both achieved 88%).
• Internal Audit is developing a fraud awareness educational programme for police officers and police staff in conjunction with the MPS.
• Internal Audit issued a significant number of B/OCU reports and is continuing to work collaboratively with B/OCU Commanders, TPHQ and Finance Services to address the issues arising.
• Internal Audit has advised on a number of the major developing systems including: Transforming HR, Finance Modernisation Programme, MetaFor, MetDuties and MetTime projects. It has also received an increased number of requests for assistance and continues to expand its advisory role.
• Staff numbers employed in Internal Audit declined slightly but continue to reflect the diverse community that they serve.
• Internal Audit underspent by 2% on its budget of £2 million.
• MPS Management accepted all except one high-risk audit recommendation.
• Internal Audit has made further progress in maintaining their effective working relationships with HMIC, Home Office Internal Audit, the Audit Commission and GLA ‘family’ internal auditors.

C. Race and equality impact

All field auditors and investigators have received appropriate training in equality and diversity issues and their performance within the MPS is monitored. Internal Audit planned 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 cost of Internal Audit activities is met within the MPA’s directly managed budget. There is a risk of loss, fraud, waste and inefficiency if Internal Audit recommendations are not effectively implemented. Savings and recoveries made enable funds to be better directed towards core policing activities.

E. Background papers

None

F. Contact details

Report author: Catherine Crawford, MPA Chief Executive.

For information contact:

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

Send an e-mail linking to this page

Feedback