MPA oversight of issues arising from Internal Audit reports and recommendations

Report: 7
Date: 15 June 2009
By: Director of Internal Audit

Summary

The report presents proposals for enhancing the level of Corporate Governance Committee oversight of the key strategic issues and risks highlighted as a result of internal audit work, including the implementation of any related internal audit recommendations.

A. Recommendation

That

1. Members agree the preferred option for receiving details of internal audit reports, and
2. the proposed enhancements to internal audit quarterly progress reports.

B. Supporting information

1. At the last Corporate Governance Committee members requested that options be put forward for increasing the level of oversight of issues highlighted as a result of internal audit work including the implementation of internal audit recommendations. This report summarises the contents of reports currently provided and contains proposals for the provision of additional information going forward.

2. The quarterly internal audit progress reports provided to Corporate Governance Committee currently include: an update on the assurance score, analysis of audit recommendations made, accepted and implemented, trends emerging from audit findings and a list of internal audit reports issued (reports are also made available to Corporate Governance members). My Annual Report contains a more detailed analysis of recommendations made, accepted and implemented, my annual opinion on control, areas of concern and the audit opinion and key findings for each review conducted within the financial year.

3. To promote greater awareness within the Authority of the key strategic issues and risks highlighted as a result of Internal Audit work whilst seeking assurance that appropriate action is taken by MPS senior management, members are asked to consider the following options:

1. Taking each internal audit formal report to the Corporate Governance Committee.
   This option would provide members with more detail but would be in danger of creating information overload (we issued 73 audit reports in 2008/9). It could therefore detract from other significant items of business on the agenda.
2. Taking the executive summaries to our reports to the Corporate Governance Committee. These would cover the objectives of each audit, give our opinion on the system under review and highlight the key recommendations.
   This would provide members with a more succinct summary of the key issues and is less likely to cause information overload.
3. A higher level summary similar to that provided in my Annual Report highlighting our opinion, key findings and number of recommendations for each review could be included in the Director of Internal Audit’s quarterly updates to Committee.
   This option would give a greater opportunity to draw out the most relevant information and could be backed up both by a summary of MPS senior managements views on progress for each significant item and copies of actual reports could be provided on request to Committee members.

5. In supporting the Committee’s responsibility for ensuring appropriate action is taken in response to audit findings, we propose the quarterly internal audit update reports are enhanced:

• Giving greater prominence to the key strategic issues arising from our work.
• Reporting issues around non-compliance are in more specific terms.
• Categorising audit recommendations by control issue.
• Highlighting areas where implementation of recommendations is not progressing as planned.
• Reporting results of audit follow up work in more detail.
• Highlighting areas of best practice and improvement.

6. The report provided by the MPS on the implementation of high-risk recommendations has helped to increase awareness and ensure that more prompt action is taken in response to audit finding. Representation from business areas responsible for implementing high-risk recommendations would enhance this process further, particularly where there is an issue around meeting deadlines for implementation.

7. Internal Audit reports of interest to other MPA Committees that raise key strategic issues are issued to the Chair of the relevant Committee and if appropriate the Committee itself.

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: Peter Tickner, Director of Internal Audit

For information contact:

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

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