Internal Audit progress report

Report: 5
Date: 11 September 2008
By: Director of Internal Audit

Summary

The report summarises the work of Internal Audit for the period April to September 2008.

The report also summarises the results of significant Internal Audit work to date and the adequacy and effectiveness of control in MPS systems where Internal Audit has issued final reports since April 2008.

A. Recommendation

That

1. members note the progress made in achieving the 2008/09 Internal Audit Plan; and
2. members note the current Internal Audit evaluation of the adequacy and effectiveness of internal control in the MPS.

B. Supporting information

Progress Against the 2008/09 Internal Audit Plan

1. Work is underway on 65% of the systems audit programme and we are aiming to achieve the 90% target for completion of the systems audits to report stage by the year-end.

2. A third of our B/OCU Programme for 2008/09 is underway with the remainder due to be completed in the third and fourth quarters of the year.

3. We are currently advising on the key areas of work published in our systems development programme at the start of the year. We are also on target to complete our follow up audit programme of work.

Opinion on the Adequacy and Effectiveness of MPS Systems

4. In my Annual Report for 2007/08 I noted that, on the scale where 1=excellent control and 5=unacceptable control, the MPS had an overall score of 2.8 (3.1 for systems audits and 2.4 follow-ups). At this stage of the year for 2008/09 the equivalent score is showing a slight improvement at 2.7 overall (3.1 systems audits and 2.2 follow-ups).

5. It is encouraging to note that our follow-up reviews continue to show an improved assurance score on that of first time reviews. Where internal audit recommendations have been implemented the internal control environment is improving. We are continuing to work with MPS senior management to ensure that appropriate action is taken to address areas of concern during the year.

Current Investigations

6. We have taken on thirty-five new cases since the 1 April 2008. This is broadly in-line with earlier years.

7. Our most significant task in the last quarter has continued to be in relation to the MPS Amex corporate charge cards. Further information on this is a separate agenda item. I am planning that we will complete our part in the investigation within the next three months.

8. Investigative resources have also been allocated to issues relating to the award of contracts to Impact Plus. Contact is being maintained with the investigation team led by Sir Ronnie Flanagan and regular update meetings are planned.

9. Good progress has been made, working jointly with MPS Finance Services, Professional Standards and the Director of Leadership Development, in our work to raise the level of fraud awareness in the conduct of the MPS business. A series of events for five hundred key staff using the Audit Commission’s ‘Changing Organisational Cultures’ toolkit have been planned for Autumn 2008.

10. I previously reported that the MPA growth bid for 2008/09 included a fraud prevention post. A similar post exists in Transport for London and has proved invaluable in developing fraud awareness and improving fraud reporting. A selection process for the post has now been completed and a candidate identified – it is hoped they will start in about two months.

11. MPA colleagues in the Communications Unit have implemented within the MPA website functionality to facilitate members of the public and others wishing to report internal fraud. The facility includes an on-line form, a telephone number and an address for correspondence.

Current Advice and Review Activity

12. We advised on the revision of the Authority’s Contract and Financial Regulations and are now working with the MPS in developing the systems to support the implementation of the Regulations. We continue to advise on the Transforming HR Programme, the Modernisation of Finance and Resources Management and the revised MetaFor project. We have also been invited to contribute advice to the recently launched Improving Policing Information (IPI) Programme.

13. We have issued the following final systems audit and follow up reports since the publication of my Annual Report:

Systems Audit Reports

• Accounts Control SO15
• Pay Reconciliation
• Systems Supporting Financial Reporting
• Business Performance Management
• Cash Security and Disbursement
• SCD Child Protection OCU
• Lewisham BOCU
• Crime Property
• Use and Control of Firearms

Follow Up Audit Reports

• Management Training and Development
• Catering Sales and Trading
• Catering Special Events
• Imaging Services, Identification Services, DNA and Fingerprints
• Tower Hamlets BOCU
• Haringey BOCU
• Human Resource Planning
• Systems Supporting Visual Identification

Staffing

14. I currently have thirty-five staff in post and a recent recruitment campaign has led to offers of employment for the Fraud Prevention Officer and an Auditor. I continue to have one auditor, one analyst and an administrative support officer vacancy. To ensure that we are able to deliver this year’s programme and while we await security clearances for those that have been offered positions, we currently have two part-time contractors from the commercial sector in post with a further one due to join us in October.

Liaison with MPS Risk Management, Inspection and Review Activity

15. We are continuing to work in liaison with the new Risk Manager for the MPS and the internal inspection review bodies. We are actively involved in the Internal Inspection and Review Group aiming to ensure internal review activity is properly co-ordinated and duplication is avoided.

External Liaison

16. My Deputy represents Internal Audit on the MPS External Inspection and Review Group and we are working with the Audit Commission, HMIC and MPS Finance Services to ensure that a co-ordinated work programme of inspection and review activity is carried out in 2008/09.

17. I meet regularly with the other heads of audit in the GLA family to discuss issues around commonality of reporting and comparing internal audit performance. In June of this year I also organised and chaired the second national conference of Police Authority Auditors in England and Wales. This event included presentations on key developments in auditing in the police environment, discussions around strategy and approach and developing measures for benchmarking performance.

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.

D. Financial implications

There is a risk of loss, fraud, waste and inefficiency if Internal Audit recommendations are not effectively implemented. Savings and recoveries made as a result of audit work enable funds to be directed towards core policing activities.

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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