Internal audit progress report

Report: 6
Date: 19 September 2001
By: the Director of Internal Audit

Summary

This report summarises the current position regarding progress against the 2001/02 Internal Audit Plan.

A. Recommendations

1. Members to note the contents of this report.
2. Approval is given to postpone the systems reviews of, the Performance Management Framework, Vehicle Equipping and Vehicle Provision and Disposal.

B. Supporting information

Progress against the 2001/02 internal audit plan

1. The Audit Panel agreed in June 2001 that six internal audit reviews included in the original programme of work for 2001/02 should be postponed until next year. I am proposing that three further audit reviews are postponed.

2. It would not be advisable to conduct our planned review of the Performance Management Framework this year as the Inspectorate and the PRS Directorate are due to carry out a comprehensive review of this area in November 2001. Our reviews of Vehicle Equipping and Vehicle Provision would also be better placed after the current review of the Transport Strategy being conducted by the Director of Resources.

3. The remainder of the audit plan should be achieved if we recruit additional staff and we allocate eight audit reviews to contractors. We have shortlisted our preferred suppliers for the internal audit framework agreement and the arrangements are now being finalised by the Directorate of Procurement and Commercial Services. I intend to contract out the first tranche of work in October 2001.

Current review work - including investigations

4. Our major review on the vehicle removal contract is drawing to a close. We are now concentrating on advising on the control framework for the new contract management arrangements. However, my enquiries into the changes made to the vehicle removal contract continue. I have reported my initial findings to the Treasurer and the Director of Resources.

5. In the last quarter we have commenced an examination of the conduct of the cleaning contractor for one area of the MPD and the process adopted for contract renewal following the identification of a number of concerns. We have also processed five cases where the relatives of pensioners or the pensioner themselves have continued to accept pension payment after entitlement has ceased. Recovery of the overpayments is underway and one case is being progressed as a criminal matter. We have also continued to investigate and advise on aspects of IT security.

6. The following systems audit final reports have been issued since my Annual Report in June 2001:

• Warehousing, Stocks and Stores Control - Ammunition
• Road Accident and Traffic Intelligence Reports
• Fixed Penalty Notices
• Systems Supporting Financial Reporting
• Health and Safety
• Payroll Standing Data
• Major Incident Response

Responses to audit reports in high risk areas

7. I have yet to receive a response to the MPS Transport Outsourcing Review Report issued on 18 December 2000. I have also not received responses to a number of medium risk reviews, for example, Police and Civil Staff Support Inside the U.K. and Fees and Charges. I am continuing to remind the senior managers involved as agreed with the Audit Panel.

Internal audit follow up reviews

8. We are currently carrying out a series of follow up audits to ensure that I am in a position to give an accurate update on the level of implementation of audit recommendations at the end of the year. At present we follow up high risk audits within six months and medium/low risk systems within twelve months.

9. At the last full authority meeting the Treasurer agreed to consider the option of following up audit reviews within three months of the issue of our final report. Although this would help to confirm the level of implementation more promptly, I do not have the resources necessary to achieve this. We are working with MPS senior management and the Inspection Liaison and Analysis Unit (ILAU) to monitor the level of implementation of high risk recommendations on a quarterly basis. This process will rely on management confirming how much progress has been made with internal audit recommendations. I will in turn report the outcome to the Audit Panel on a three monthly basis.

Implementation of high risk recommendations

10. I previously reported that only 63% of high-risk recommendations were implemented for those reports issued in the last calendar year. Since the last Panel meeting I have written to the relevant senior managers to ascertain the latest position on these reviews and on those reports that were issued in the first quarter of this calendar year. To date I have received a reply from AC Hogan-Howe which shows that 72% of high risk recommendations have been implemented for those reviews reported to Personnel in the first quarter of this calendar year.

11. I can also confirm through our membership of the Audit and Benefit Realisation Sub-Group, chaired by the Director of Information that 95% of high risk recommendations for reviews reported to the Directorate of Information in the last calendar year, have either been fully implemented or work is in progress.

Liaison with other review bodies

12. We continue to act in liaison with other review bodies through our involvement with the Quality Performance Review Group and the Continuous Improvement Steering Committee. We also provide monthly progress reports to the MPS Inspection Liaison and Analysis Unit.

13. Meetings regularly take place with District Audit and we continue to ensure that our respective programmes are appropriately co-ordinated.

Staffing

14. I have lost a further three staff since the last Audit Panel meeting with thirty staff now in post. I am hoping to appoint three more systems audit trainees as a result of a recently successful campaign. The lack of Forensic Auditors in post is, however, of particular concern and is presenting difficulties. My analyst support posts are also both currently vacant. The recruitment and retention review will hopefully help address these concerns in the near future.

C. Financial implications

None at this stage.

D. Background papers

None.

E. Contact details

The author of this report is Peter Tickner, Director of Internal Audit

For information contact:

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

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