Directorate of Audit, Risk and Assurance (DARA) Quarterly Progress Report

Report: 5
Date: 13 September 2010
By: Director of Audit, Risk and Assurance

Summary

The report summarises the work completed by the Directorate of Audit, Risk and Assurance since the Committee last met and identifies key areas of work planned for the 3rd quarter of 2010/11. It also provides an update on the adequacy and effectiveness of control in the MPS based on final reports issued to date.

A. Recommendation

That members note:

1. the work undertaken by the Directorate of Audit, Risk and Assurance and progress made in achieving the 2010/11 Plan; and
2. 2. the current evaluation of the adequacy and effectiveness of internal control in the MPS.

B. Supporting information

Audit Work Completed in the 2nd Quarter 2010/11

1. We have issued 16 final reports since the June meeting of the Committee. Appendix 1 highlights the overall opinion, effective areas of control, the risk and control issues identified and progress made in implementing recommendations, for each review completed. It also highlights the output of our follow up audits which continues to demonstrate that there is an increased level of implementation of recommendations. Thirty four audits are at draft report stage and a further 24 reviews are underway.

2. We have provided risk and control advice to the language programme board, covert control advisory group, procurement governance framework and the Improving Policing Information programme. We continue to meet monthly with the MPS head of risk management to co-ordinate our work in driving improvements to risk management. Initial analysis and review of the MPS internal inspection and review functions has been completed by the MPS project team. We are also agreeing our input to the various strands of the service improvement programme with the designated MPS leads.

3. The Assistant Commissioner Specialist Crime has invited us to advise on the governance framework being developed for security vetting and clearance, following concerns raised on the lack of progress being made in implementing our recommendations. We will also carry out the follow up review of our previous audit in this area in January 2011. Our planned review of witness protection in the Directorate of Professional Standards will now be conducted in an advisory capacity. This follows proposals to merge the function with witness protection in the Specialist Crime Directorate, an area that we have recently reviewed.

4. Appendix 1 also highlights counter fraud activity undertaken to date. We currently have 37 live investigations. We have concluded our work on the previous National Fraud Initiative exercise and the 2010 exercise is due to commence. We are continuing to work with colleagues in the MPS to develop a comprehensive counter fraud strategy, which will be presented to the next meeting of this Committee.

5. The Director of Audit, Risk and Assurance chaired the National Police Audit Group annual conference held in June. We received excellent feedback with delegates commenting on the high standard of presentations and the relevance of topics discussed, which included; governance in policing, value for money, procurement in the public sector, budget implications and developing an assurance framework. A terms of reference for the group has now been developed and greater liaison with the Association of Police Authority Chief Executives (APACE) and the Police Authority Treasurers Society (PATS) is taking place. We are aiming to enhance standards and raise the profile of internal audit in the policing environment.

Internal Control Environment

6. The overall assurance score to date for 2010/11 based on our final reports is 2.5 [1] with first time reviews scoring 2.9 and follow ups 2.2. This is an improvement on the overall score of 2.6 (2.9 first time reviews and 2.4 follow ups) for 2009/10.

7. The progress made in implementing our recommendations for the previous two calendar years is shown at Appendix 2. This analysis shows that 88% of recommendations made in 2008 and 75% made in 2009 have been implemented. All outstanding recommendations have passed their due date for implementation.

8. Greater emphasis is being placed on monitoring high risk recommendations as evidenced in the separate report to this committee, although a number remain outstanding past the original agreed implementation date.

9. Our analysis of recommendations made to date this year show that the main issues are around management supervision and review (38%), record keeping (17%) and guidance and training (10%). MPS Performance Board continue to receive this level of analysis and are overseeing the measures being put in place to address the underlying risk and control issues.

Key Work Planned for 3rd Quarter 2010/11

10. Risk based reviews will include risk maturity framework and assessment, procurement of covert assets, major incident response and the procurement framework for construction works. We will finalise our reviews of; the corporate charge card, MPA finance and business support and imprest control. Follow up audits will include; firearms licensing, Police Officer and Staff Pensions, and Forensic Medical Examiner Payments.

11. We are continuing to develop our BOCU audit approach. In agreement with the Deputy Assistant Commissioner Territorial Policing, we will focus on providing assurance on key business and support areas across boroughs. There will be greater liaison with TPHQ to ensure a corporate response to the emerging risk and control issues. We are also agreeing our input to the TP Development Programme with the recently appointed Change Manager.

12. Surveys supporting the Raising Fraud Awareness workshops to be held from January to March 2011 will be conducted in the Autumn.

13. We continue to meet monthly with the Audit Commission and are now holding regular joint meetings with HMIC. We are also reviewing our protocol with Home Office Internal Audit, identifying areas of joint interest and agreeing an integrated assurance framework.

Directorate of Audit, Risk and Assurance Performance

14. We are currently on target to complete 90% of our work programme by the year end. A total of 63% of risk based audits are underway, we are providing advice on areas included in our published programme and are on target to complete those follow ups that are now due in 2010/11.

15. We are exceeding our productivity target of 75%, currently achieving 79% and are spending our time broadly as planned. We are meeting our targets for the issue of final reports and continue to work with colleagues in the MPS in improving the timeliness of reporting at each stage of the process. We have also recently received excellent feedback from MPS senior management in particular, for our audits of business continuity and accounts control professional standards.

C. Other organisational and community implications

Equality and diversity impact

1. The MPA’s commitments 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.

Consideration of MET Forward

2. Completion of the Directorate of Audit, Risk and Assurance annual work programme, which is designed to support all strands of MET Forward and in particular MET Standards, is making a key contribution to fighting crime, securing value for money and increasing confidence in policing.

Financial implications

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

Legal implications

4. There are no direct legal implications arising from the report.

Environmental Implications

5. There are no direct environmental implications arising from the report.

Risk implications

6. Appendix 1 highlights areas of effective management of risk and areas for further improvement identified as a result of DARA review activity.

D. Background papers

None

E. Contact details

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

For information contact:

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

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