High-Risk Audit Recommendations

Report: 12
Date: 7 July 2011
By: Director of Resources on behalf of the Commissioner

Linked to exempt item 21

Summary

This report updates Members in relation to the outstanding high-risk MPA Directorate of Audit, Risk and Assurance (DARA) recommendations, as at 23 June 2011

A. Recommendation

Note the status of all outstanding high-risk recommendations made in relation to MPS control systems by the Directorate of Audit, Risk and Assurance.

B. Supporting information

1. This report summarises the present status of accepted high-risk recommendations made by the Directorate of Audit, Risk and Assurance and details the ongoing process by which the MPS responds to audit recommendations.

Progress report on high-risk audit recommendations

2. Since the previous report to Corporate Governance Committee (CGC) on 10 March 2011, five further high risk audit recommendations have been made by DARA. Three of these are now considered implemented by the MPS. Full details of all of the high risk audit recommendations can be found in Appendix 1, with details of exempt audit recommendations at Exempt Appendix 1A. Progress to ensure the outstanding recommendations are addressed as a high priority continues to be co-ordinated by the Compliance and Assurance Team (CAAT) in Finance Services.

Current Position

3. There are 9 DARA high-risk recommendations outstanding to the MPS, with a further two outstanding to the MPA Treasurer.

4. The table below provides detail of the outstanding recommendations, comparing the current position with that which was reported at the previous CGC meeting in March 2011

5. Table: High-Risk DARA recommendations

Outstanding to MPA Treasurer

Process by which the MPS responds to audit recommendations

6. The Audit and Inspection Protocol previously agreed between the MPS and the audit and inspection services has been revised and is awaiting final comments from DARA prior to publication.

7. Outstanding high-risk recommendations are reported on a quarterly basis to the MPS Performance Board. Additionally, MPA DARA is updated at meetings with Finance Services in relation to the development of audit recommendation tracking and reporting.

C. Other organisational and community implications

Equality and Diversity Impact

1. There are no direct implications for equality and diversity arising from this report. A number of these projects will have had an equality impact assessment completed on them where relevant. This will have highlighted any diversity and equality implications locally.

Consideration of MET Forward

2. Any implications for the delivery of Met Forward will form part of the respective inspection and audit reports by the external inspection and audit services. In addition, any of the key outcomes will be addressed through implementation of the recommendations and any identified areas for improvement.

Financial Implications

3. The direct costs associated with the audit activity outlined within this report are covered within existing budgets. Any additional financial implications will form part of the individual audit reports and, if required, will be approved through the normal MPS/MPA approval processes. In addition, any financial matters highlighted will be addressed through implementation of the recommendations and any identified areas for improvement.

Legal Implications

4. Regulation 4 of the Accounts and Audit Regulations 2003 (‘the Regulations’), as amended by the 2006 Regulations, states that the MPA are required to have a sound system of internal control which facilitates the effective exercise of that body’s functions, including arrangements for the management of risk, and the conduct of an annual review. There is also a legal requirement under the Regulations, for an MPA Committee to review the effectiveness of the system of control.

5. This report assists the MPA’s/MPS’ compliance with the requirements referred to above.

6. The Corporate Governance Committee has delegated powers in respect of the internal system of control including risk management and is authorised to approve the contents of this report.

7. Any legal issues arising from the audit and inspection activity will be referred to DLS for advice as appropriate.

Environmental Implications

8. There are no direct implications on environmental issues arising from this report.

Risk (including Health and Safety) Implications

9. Consideration of risk is an integral part of the respective inspection and audit reports by external inspection and audit services. All recommendations by the MPA DARA will be graded ‘high’, ‘medium’ or ‘low’ risk as appropriate.

D. Background papers

None.

E. Contact details

Report author: Nick Rogers, Director of Finance, Finance Services

For information contact:

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

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