Directorate of Audit, Risk and Assurance progress report

Report: 11
Date: 14 June 2010
By: Director of Audit, Risk and Assurance

Summary

This report summarises the work carried out by the Directorate of Audit, Risk and Assurance (DARA) in the first quarter of 2010/11 and the key areas of activity planned for the second quarter.

A. Recommendation

That members note:

1. the work undertaken by the Directorate of Audit, Risk and Assurance in the first quarter of the year and the key areas of activity planned for the second quarter.

B. Supporting information

Work carried out in the 1st Quarter 2010/11

1. In the first quarter of this year we have finalised a number of audit reports that feature in my annual report for 2009/10. Appendix 1 contains details of follow up audits recently concluded and notes an improvement in the control framework in all three areas. A further 32 audits are at draft report stage and 18 are in progress, including 14 from the new annual programme of work agreed for this year.

2. We have established leads within DARA for each MPS business unit. They are responsible for working in liaison with the nominated contact in the MPS to ensure our work programme is properly co-ordinated and key emerging issues are dealt with as they arise.

3. Our advisory work on a number of key developing systems continues, including; finance modernisation, language programme board, property services outsourced FM contracts, the IPI programme and security vetting. We are also advising on the governance framework for ACPO TAM and are represented on the working group established by the MPS Director of Group Finance to review the MPS internal inspection functions.

4. We are revising our approach to B/OCU audits following changes to the finance and resource structure and the planned developments in Territorial Policing. Our work in this area will form part of the Met Standards strand of the MPA Met Forward Programme.

5. Our counter fraud team continue to investigate 43 cases of potential irregularities and/or fraud, 40 of which were carried forward from last year. Work has begun on creating proactive investigative programmes to analyse financial data on a regular basis. We are also developing our approach to analysing the underlying risk and control issues that are evident from our investigative work. This will be used to inform our risk review and fraud prevention programme

DARA Restructure

6. The consultation process for the restructure of DARA is now complete and the revised structure will be in place from the beginning of July. The Directorate now has 33 posts organised under three heads of unit reporting directly to me, namely; Head of ICT Audit and Assurance, Head of Risk and Compliance, and Head of Counter Fraud. We are currently recruiting to fill two vacant posts, the Head of Risk and Compliance and an Audit Manager to work in the ICT and programme/project management advisory area.

Key Reviews Planned for 2nd Quarter

7. We will conclude our audits of; MPA finance and business support, Security of Information, Asset Registers, Independent Advisors, Expenses and Allowances and the Corporate Charge Card system. Our follow up reports on the procurement framework, risk management and crime property will also be finalised.

8. Our audit reviews of; Operation Blunt 2, Olympics and Paralympics Budgetary Control Framework, Project Funding and Control, Management of Outsourced IS/IT contracts should reach report stage in the next quarter. Key audits of HR Corporate Risk Assessment and Management, Police Staff/Officer Discipline Framework and Police Overtime will also commence.

9. Our advisory review programme will also be a focus for the next quarter. In liaison with MPS Finance Services colleagues we are developing a joint fraud prevention strategy which will be presented to this committee in September. Planning is also under way with the MPS and Audit Commission for a further series of fraud awareness and prevention workshops due to be held in the third quarter of the year.

C. Race and equality impact

The MPA’s commitments in relation to equality and diversity are considered in all activities carried out by the Directorate of Audit, Risk and Assurance. We also monitor the behaviour of our staff through questionnaires to auditees on a range of matters related to audit and investigative work.

D. Financial implications

There is a risk of loss, fraud, waste and inefficiency if our 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. Legal implications

None given.

F. Background papers

• Appendix 1 – Directorate of Audit, Risk and Assurance Final Reports Issued 1st Quarter 2010/11

G. Contact details

Report author: Julie Norgrove, Director Audit, Risk and Assurance

For information contact:

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

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