Contents
Report 10 of the 27 Mar 03 meeting of the Audit Panel and sets out the proposed plan for the use of Internal Audit resources from 1 April 2003 to 31 March 2004.
- Internal audit plan for April 2003 to March 2004
- Summary
- A. Recommendations
- B. Supporting information
- C. Equality and diversity implications
- D. Financial implications
- E. Background papers
- F. Contact details
- Appendix 1: Calculation of annual internal audit need
- Appendix 2: Audit plan 2003/2004 based on probable staffing levels
- Appendix 3: Proposed systems audit plan 2003/04
- Appendix 4: Internal audit - proposed systems development projects 2003/04
- Appendix 5: Internal audit programme of follow up reviews 2003/04
Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).
See the MOPC website for further information.
Internal audit plan for April 2003 to March 2004
Report: 10
Date: 27 March 2003
By: Director of Internal Audit
Summary
This report and associated appendices sets out the proposed plan for the use of Internal Audit resources from 1 April 2003 to 31 March 2004.
The annual plan is based on an updated Audit Needs Assessment and Risk Analysis for the next five years ahead.
The Treasurer has approved the proposed annual plan for submission to the Audit Panel.
A. Recommendations
1. The Audit Panel approves the proposed use of audit resources and notes the summary calculation of audit need and comparison to planned work set out in Appendices 1 and 2.
2. The Audit Panel approves the programme of Internal Audit work, set out in Appendices 3 to 5.
B. Supporting information
Purpose and basis of the annual internal audit plan
3. The annual plan of Internal Audit work is designed to ensure that I have sufficient information to form an opinion on the adequacy of the arrangements to provide a proper and effective internal control framework for MPA/MPS business. My opinion is formed from the risk scores achieved on systems audit and related work as well as any fraud or wastage from a breakdown in control that has come to light in systems over the year.
4. The plan is risk based, with the highest current financial and business risks determining the systems that Internal Audit will review next year. In preparing the plan the proposed plan for Audit Commission work relating to this year’s and next year’s accounts has been taken into account. The draft Internal Audit plan has been given to the Director of Resources for comment and other MPS Management Board members as well as senior members of MPS civil and police management have been approached about audits planned in their area of responsibility.
5. The annual plan is drawn from our assessment of need based on a five-year cycle but takes into account likely staffing levels and the need for some contingency time. The calculated audit need is set out in Appendix 1. Appendix 2 identifies available audit resources and reconciles the plan to the overall need. The plan should enable 82% of the identified need for systems advice and routine audits to be met (3,169 audit days out of 3,891). 76% of the need identified for investigative work will be met (1,473 out of 1,945 days). In all, 80% of the identified Internal Audit need for the year is reflected in the plan. These calculations are set out in the reconciliation in Appendix 2.
6. The plan ensures that key issues such as Corporate Risk Assessment, Corporate Strategy and Planning, Police Overtime, Estate Strategy Management and the Procurement and Contract Management Framework are addressed by relevant systems audits. In addition a number of key financial systems, including Budget Preparation Approval and Monitoring, Receipt and Banking of Income, VAT Control and Investment, Borrowing and Cash Management will be reviewed.
7. We are continuing our theme from last year’s plan of ensuring that wherever possible we will offer proactive advice. In Appendices 3 to 5 we have set out the systems audit programme, those key areas of new and developing systems where we will offer assistance and advice during the year and, finally, a programme of planned follow-up reviews of the progress in implementing recommendations accepted from earlier audits. In addition we plan to review ten BOCUs or OCUs across both TP and the specialist areas of the MPS, addressing issues such as devolved management, budgetary control and crime property.
Key themes of our work for 2003-2004
8. Key themes for this coming year are to increase the amount of time we are able to devote to reviews at local BOCU or OCU level as well as continuing to expand the advisory role of Internal Audit, particularly for new and developing business and financial systems. This will enable us to contribute further to the Treasurer’s Financial Management Strategy. In terms of Specialist OCUs, we will review the Transport OCU in conjunction with the MPS Inspectorate and in liaison with our counterparts at Transport for London. Major projects where we will offer advice to the MPS include Overtime and Duties Management, partnerships, devolved financial management and C3i.
Liaison with other review bodies
9. Time has been set aside in the plan to supplement the work of the Audit Commission by carrying out health checks of the key financial systems. We will also be analysing data to support both this work and National Fraud Initiative. We will continue to work to ensure that there is no unnecessary duplication of audit effort. To that end we will continue our liaison with the financial team of HMIC and the MPS Consultancy Services Best Value lead as well as the MPS internal Inspection Liaison and Analysis Unit.
Fraud investigation and liaison
10. We are planning for around the same amount of investigative work next year to recognise the likely continuing shortfall in forensic auditors. Investigative work will form 32% of the plan, this is in proportion with the overall need between investigative and systems work although at a reduced provision for both. It will continue to be supplemented by analytical review work to enable a more focused approach with the level of resource available to us.
11. We will work in conjunction with investigative bodies in the MPS, including Professional Standards and the Fraud Squad. To that end, on behalf of the Treasurer we will assist the MPS to implement processes to put in place the framework necessary to meet the anti-Fraud and Corruption strategy for the MPA. We will also continue to share responsibility for the whistle blowing ‘Right Line’ with MPS Professional Standards.
C. Equality and diversity implications
None.
D. Financial implications
The Annual Plan is designed to match the agreed budget for 2003-2004. There are no further financial implications.
E. Background papers
None
F. Contact details
Report author: Peter Tickner
For information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
Appendix 1: Calculation of annual internal audit need
- Systems audits per audit needs assessment (Based on five year cycle High risk system three audits in five years Medium risk system twice in five years Low risk system once in five years): 13655 days
- Every BOCU one 40 day audit every five years (and some central OCUs):1800 days
- Five year total system audits and reviews: 15455 days
- Annual total systems audit need: 3091 days (53% need)
- Systems development work per annum: 590 days (10% need)
- Analysing key financial systems per annum: 210 days (4% need)
- Total systems audit and audit advice need: 3891 days (67% need)
- Forensic Audit (Investigations, Preventative Advice and National Fraud Initiative work): 1945 days (33% need)
- Total Annual Internal Audit Need 5836 days (100% need)
Appendix 2: Audit plan 2003/2004 based on probable staffing levels
Systems audit staff days | Forensic audit staff days | Total days | |
---|---|---|---|
Total available time | 4345 | 2266 | 6611 |
Total indirect time | 1000 | 500 | 1500 |
Total direct time available | 3345 | 1766 | 5111 |
Systems audits carried forward | 240 | 0 | 240 |
Operational audits | 400 | 0 | 400 |
Follow up audits | 285 | 0 | 285 |
Control advice | 54 | 35 | 89 |
Systems development work | 520 | 35 | 555 |
Analysing key financial systems | 40 | 170 | 210 |
Ring fenced for investigations | 45 | 1303 | 1348 |
National fraud initiative work | 0 | 125 | 125 |
Total direct audit time committed | 1584 | 1668 | 3252 |
Balance of in-house days available | 1761 | 98 | 1859 |
Add | |||
Contracted in audit days | 15 | 15 | 30 |
Less | |||
Internal audit projects | 150 | 40 | 190 |
Planning | 102 | 40 | 142 |
Contingency (up to 5% of direct time) | 167 | 0 | 167 |
Summary | |||
Time available for new audits | 1357 | 33 | 1390 |
Reconciliation of need against plan
Days | % Need | Plan days | % Plan | |
---|---|---|---|---|
Annual systems audit need | 3091 | 53% | 2315 | 50% |
Systems development need | 590 | 10% | 644 | 14% |
Managed audit work | 210 | 4% | 210 | 5% |
Total systems audit and audit advice need | 3891 | 67% | 3169 | 68% |
Total forensic audit need (including support for investigations) | 1945 | 33% | 1473 | 32% |
Total annual internal audit need | 5836 | 100% | 4642 | 100% |
Shortfall against need | 1194 | 20% |
Appendix 3: Proposed systems audit plan 2003/04
System Group | Audit Title | Risk |
---|---|---|
Business Management | Corporate Risk Assessment & Management | High |
Business Management | Police - Allowances and Expenses | High |
Business Management | Police Overtime Payments | High |
Business Management | Civil Staff Allowances and Expenses | Medium |
Business Management | Uniform Services - Stores & Stock Control | Medium |
Business Management | Vehicle Maintenance and Repair | Medium |
Corporate | Corporate Strategy & Planning | High |
Corporate | Accident and Riots Claims & Payments | Medium |
Corporate | Police / Civil Staff Support Outside the UK | High |
Corporate | Public Relations Funding & Control | Medium |
Corporate | Reporting to External Stakeholders | Medium |
Corporate | Storage & Display of Police Artefacts | Medium |
Covert Activities | Informants Management System | Medium |
Covert Activities | Secure Intelligence Systems | High |
Estate | Estate Strategy Management | High |
Financial Support | Budget Preparation, Approval & Monitoring | High |
Financial Support | Investment, Borrowing and Cash Management | High |
Financial Support | Receipt and Banking of Income | High |
Financial Support | VAT Control | High |
Financial Support | Cash Security & Disbursement | Medium |
Human Resources | Civil Staff - Career Management | Medium |
Human Resources | Civil Staff - Induction of New Recruits | Medium |
Human Resources | Civil Staff Recruitment | Medium |
Human Resources | Management and Development Training | Medium |
National Policing | National Identification Service | Medium |
Operational Support | Crime Related Property (inc. Prisoner Property Account Fund (PPAF)) | Medium |
Operational Support | Crime Reporting Information System (CRIS) | Medium |
Operational Support | Linguists | Medium |
Operational Support | Resourcing and Management of PCSOs | Medium |
Operational Support | Support Services Coordination and Supply | Medium |
Operational Support | System Supporting Camera Partnerships | High |
Operational Support | System Supporting Cash Seizures | Medium |
Operational Support | Technical Support | Medium |
Operational Support | Vehicle Removal and Statutory Charges | Medium |
Operational Support | Voice Communications | Medium |
Procurement | Procurement and Contract Management Framework | High |
Procurement | Sponsorship Monitoring and Control | Medium |
Appendix 4: Internal audit - proposed systems development projects 2003/04
System group | Project |
---|---|
Business Management | Civil and Police Overtime |
Business Management | CARM & Duties Management |
Business Management | e-business - external |
Business Management | e-business - internal |
Business Management | Programme Management of the Outsourcing of Major Services |
Business Management | Programme Valiant, KIISMET & IS Strategy |
Business Management | Financial Accounting Systems Upgrade/Replacement |
Corporate | METSEC Project Board |
Corporate | National Fraud Initiative |
Corporate | Partnerships |
Corporate | PKI - Corporate IT Security |
Corporate | Planning for the Prevention of Fraud & Corruption |
Corporate | Risk Management (Monitoring Financial Status of External Contractors) Group |
Corporate | Corporate Risk Assessment & BC/DR |
Covert Activities | Covert Control Environment |
Estate | Major Works - Contract Control Processes |
Financial Support | Activity Based Costing |
Financial Support | Devolved Financial Management |
Financial Support | FME & Interpreters Devolution |
Human Resources | MetHR Corporate Personnel Project |
Operational Support | Airwave |
Operational Support | AWARE Implementation |
Operational Support | C3I |
Operational Support | Crime Property in MPS |
Operational Support | Custody Imaging |
Operational Support | DIANE/INUIT |
Operational Support | Infrastructure Programme Clarity |
Operational Support | MERLIN (missing persons computer system) |
Appendix 5: Internal audit programme of follow up reviews 2003/04
System group | Audit title |
---|---|
Business Management | Catering - Sales & Trading |
Business Management | Civil Pay Overtime Payments |
Business Management | Management of PFI |
Business Management | Messenger and Mail Services |
Business Management | Police Travel & Subsistence Allowances |
Business Management | Use and Control of Fuel |
Business Management | Vehicle Fleet Management (incl. Provision & Disposal) |
Business Management | Loans to Police & Civil Staff |
Business Management | Police & Civil Staff Pensions |
Business Management | Rent and Housing Allowance |
Corporate | IS/IT Security |
Corporate | Claims Against the Commissioner |
Corporate | Creation, Storage, Security & Disposal Electronic Documents |
Corporate | Charities and Trusts |
Corporate | Ethics & Accountability |
Corporate | Registration, Storage, Disposal & Security of Documents |
Corporate | Semi Official Clubs |
Covert Activities | Accounts Control - TSU SO11 |
Covert Activities | Accounts Control SO12 |
Covert Activities | Acquisition and Disposal of Property |
Covert Activities | Conflict Policing Group |
Covert Activities | Informants Reward System (C) |
Covert Activities | Provision and Disposal of Vehicles (C) |
Estate | Engineering Maintenance |
Estate | Property Rent, Leasing and Rates |
Estate | Works Maintenance |
Financial Support | Claims, Debtors and Debtor Control |
Financial Support | Creditor Payment System |
Financial Support | Fees and Charges |
Financial Support | Imprest Account Control - Temporary Imprests |
Human Resources | Diversity Application & Monitoring |
Human Resources | Human Resource Planning |
Human Resources | Induction and Assessment of New Recruits-Police |
Human Resources | Police Probationer Training |
Human Resources | Police Recruitment |
Operational Support | Air Support Systems incl. Engineers |
Operational Support | Boat Support and Maintenance |
Operational Support | Caution Administration System |
Operational Support | Firearms Registration |
Operational Support | Interview Tapes - Retention, Storage & Disposal |
Operational Support | Premises licensing |
Operational Support | Public Order Operations |
Operational Support | Major Enquiry Systems – HOLMES |
Procurement | Uniform Services - Procurement & Support |
Procurement | e-Purchasing of Office Supplies |
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