Directorate of Audit, Risk and Assurance (DARA) quarterly progress report

Report: 5
Date: 2 December 2010
By: Director of Audit, Risk and Assurance

Summary

This 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 4th 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. work undertaken by the Directorate of Audit, Risk and Assurance and progress made in achieving the 2010/11 Plan; and
2. the current evaluation of the adequacy and effectiveness of internal control in the MPS.

B. Supporting information

Audit Work Completed in the 3rd Quarter 2010/11

1. Eleven final reports have been issued since the September 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. A further 26 audits are at report stage and 19 underway.

2. We have provided risk and control advice to the language programme board, finance modernisation programme, covert control advisory group, asset management tracking project, next generation outsourcing, the procurement governance and contract management framework, and the Improving Policing Information programme. We have also input to the OGC review of MPS Projects and attended the inaugural meeting of the MPS Organisational Learning Forum.

3. We continue to meet monthly with the MPS head of risk management to co-ordinate our work in driving improvements to risk management both within the MPA and the MPS. The amalgamation of the Security and Vetting unit has now taken place and progress is being made in implementing our recommendations. We will carry out the planned follow up review of our previous audit in this area in January 2011 and report the outcome to the Committee in March.

4. Appendix 1 also highlights counter fraud activity undertaken to date. We currently have 38 live investigations. Work on the National Fraud Initiative exercise for 2010 has commenced and a joint MPA/MPS Anti Fraud Strategy and implementation plan has been developed and is presented as a separate report to this meeting. Surveys to support the raising fraud awareness workshops planned for January to March 2011 are currently underway.

Internal Control Environment

5. The overall assurance score to date for 2010/11 based on our final reports is 2.5 [1] with first time reviews scoring 2.8 and follow ups 2.3. This is an improvement on the overall score of 2.6 (2.9 first time reviews and 2.4 follow ups) for 2009/10.

6. 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 78% made in 2009 have been implemented. All outstanding recommendations have passed their due date for implementation. In liaison with Finance Services we are reviewing the outstanding recommendations to ensure they remain relevant and to facilitate implementation.

7. Our analysis of recommendations made to date this year show that the main issues continue to be around management supervision and review (39%), record keeping (16%) and guidance and training (16%). 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 4th Quarter 2010/11

10. Risk based reviews will include; the risk maturity framework and assessment, deployment and payment of linguists, information sharing, governance framework, and CRIS resilience. Follow up audits will include; leadership academy, resourcing and management of specials, use and control of mobile resources, uniform services, and business continuity disaster recovery.

11. Development of our BOCU audit approach continues. In agreement with the Deputy Assistant Commissioner Territorial Policing, we will focus on providing assurance on key business and support areas across boroughs, and our planned programme of reviews is due to commence in January 2011. There will be greater liaison with TPHQ to ensure a corporate response to any emerging risk and control issues. We are also scoping our input to the TP Development Programme and are reviewing the business cases for the key planned developments.

12. We are piloting a new approach to audit reporting with an increased focus on identifying key risks and agreeing actions for improvement with management. We have also completed some research on the levels of assurance used by other police authorities and will be discussing possible alternatives to our existing criteria with MPA and MPS senior management.

13. The monthly meetings with the Audit Commission and HMIC continue, during which we co-ordinate review activity and discuss any emerging issues. We are also working on a joint protocol with the Head of Audit for the Home Office to identify areas of joint interest and agree an integrated assurance framework.

Directorate of Audit, Risk and Assurance Performance

14. The Directorate is currently on target to complete 90% of the work programme by the year end. A total of 76% of risk based audits are being carried out, 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. Long term sickness absence has meant that we will be employing some additional resource in the final quarter of the year. We are also finalising our arrangements for procuring specialist ICT audit support to conduct a number of reviews in February and March of next year.

15. We are exceeding our productivity target of 75%, currently achieving 80% 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.

16. In contributing to the GLA shared service initiative we are exploring opportunities for shared internal audit services across the group. The aim is to make the best use of available audit skills and resources within an appropriate framework.

C. Other organisational and community implications

Equalities 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.

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

• Appendix 1 – Summary of DARA Activity 3rd Quarter 2010/11
• Appendix 2 – Analysis of DARA recommendations

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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