Audit Commission review of MPA Internal Audit

Report: 5
Date: 14 September 2009
By: Chief Executive

Summary

The Audit Commission report detailing their recent review of MPA Internal Audit is attached at Appendix 1. The Audit Commission have concluded that MPA Internal Audit is an effective audit service that meets the required professional standards.

A. Recommendation

That members receive the report and note the agreed action plan.

B. Supporting information

Background

1. The Audit Commission conduct a full review of the adequacy and effectiveness of Internal Audit every three years, assessing Internal Audit’s compliance against the standards in the CIPFA Code of Practice for Internal Audit in Local Government. The Audit Commission also seek to place reliance on Internal Audit’s review of key financial systems.

Summary of report findings

2. The attached Report gives the Audit Commission’s assessment of Internal Audit set against each of the standards laid down in the CIPFA Code of Practice.

3. The Audit Commission have concluded that MPA Internal Audit is an effective audit service meeting each of the standards of the CIPFA Code of Practice. They also conclude they are able to place reliance on Internal Audit’s work on key financial systems carried out in 2008/09.

4. Particular areas of strength identified by the review include:

•  a comprehensive annual plan based on a robust risk assessment and needs analysis covering all significant areas of the MPA and MPS risk management and internal control framework on a cyclical basis;
•  a high level of satisfaction in the quality and ethical standards of the audit service;
•  good arrangements for training and development for Internal Audit staff;
•  the fostering of wider links with other internal auditors and regulators.

5. Some areas for improvement were identified leading to five recommendations. An agreed Action Plan is attached at Appendix 1 of the Audit Commission report. Three recommendations have already been implemented with the remaining two due for completion by the end of September 2009.

C. Race and equality impact

Diversity impact forms part of both the Audit Commission and MPA Internal Audit approaches to assessment. None of the recommendations made relate to race or diversity issues.

D. Financial implications

The work identified in the Action Plan will be delivered within approved budgets.

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

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