Internal Audit progress report

Report: 7
Date: 15 September 2003
By: Director of Internal Audit

Summary

This report sets out progress made to date in achieving the 2003/2004 Internal Audit Plan.

A. Recommendation

Members are asked to note the progress made in achieving the 2003/04 Internal Audit Plan.

B. Supporting information

Progress against the 2003/04 Internal Audit Plan

1. We are making good progress in carrying out our work programme agreed by Panel in March 2003. At this stage, I anticipate that we will complete our systems audit plan. We have also commenced our programme of BOCU reviews and follow up audits. Our work in supporting key developing systems continues to have a significant impact.

Current review work - including investigations

2. Forensic Audit Branch resources continue to be directed towards our work on claims by interpreters and a number of other tasks including questions around income generation from the keyholders database. We have also dealt with approximately 200 requests for assistance from local authorities as a result of the National Fraud Initiative. These mainly relate to former or current employees who have failed to declare their pension or salary when claiming Housing Benefit. Successes include the conviction of a catering manager following an investigation into misuse of a corporate procurement card to make personal payments. Support has continued to be provided to Directorate of Professional Standards and others where the skill and experience of the branch are of assistance.

3. We have provided advice to a number of key projects as a result of our systems development work. In particular, we have issued a note to the Project Lead for the roll out of MetHR expressing our concerns on a number of issues and making recommendations for improvement. We have carried out a review of the Financial Devolution Control Framework and we are currently discussing the emerging issues with the Devolution Project Team and pathfinder boroughs. Work also continues in supporting the Outsourcing Action Groups and we have agreed the way forward for our involvement in the upgrade of the MPS corporate accounting system, MetFIN.

4. In our aim to increase awareness of basic financial and business risks and controls, we have delivered training to 650 Police Inspectors under the MPS Financial Awareness Training Programme. We have received positive feedback for our input to date and we will continue to support the programme that will run for the remainder of this year and into the next. At its conclusion over 6,000 police officers at the rank of Inspector and Sergeant will have been trained.

5. We have issued the following final systems audit and follow up reports since the publication of my Annual Report:

• Hillingdon BOCU Business and Financial Systems
• Creditor Payment System
• Police Collision Claims and Insurance
• Induction and Assessment of New Recruits – Police
• Payroll Starters and Leavers
• Gifts and Hospitality Follow Up
• Pay and Negotiations Follow Up
• Road Accident and Intelligence Follow Up
• Financial and Accounting Advice Follow Up

6. Our follow up reviews continue to show a marked improvement in internal control made since the initial audit.

Responses to Audit reports in high risk areas

7. There are no responses currently outstanding for high-risk reviews.

High risk recommendations

8. We have established a system for tracking the progress being made in implementing all high-risk recommendations, including those that have been recorded as outstanding in previous years. In summary, a total of nineteen are outstanding. Action is currently being taken to address each of these and we have been assured that all will be implemented prior to the December Audit Panel Meeting.

Staffing

9. As at 1 September 2003 I have thirty-seven staff in post. This is almost at the maximum level set for the Internal Audit Directorate’s pay budget. I am looking to recruit a forensic auditor this quarter, although this continues to prove difficult and we are also actively pursuing alternatives to a full time employee.

Liaison with other Bodies, partnerships and joined-up working

10. In July, we hosted the Police Audit Group, northern branch half yearly meeting which included representatives from; Greater Manchester, West Midlands, Merseyside, West Yorkshire, South Yorkshire, Lancashire and North Wales. The Group has been established to discuss audit issues that are of particular relevance to Police Authority internal auditors. At this meeting we exchanged risk assessment methodologies and work plans and agreed a set of benchmarking criteria for future comparison. The MPS Risk Manager also gave a presentation, which was well received, on his approach to risk management and working with Internal Audit.

11. We continue to attend the MPS working party set up to co-ordinate review activity. Work has commenced to ensure that plans drawn up for next year are produced by each reviewer with full consultation.

C. Equality and diversity implications

12. Internal Audit continue to reflect the diverse community within which the MPS and MPA operate. Since the year end three staff have been appointed, taking the percentage of visible ethnic minority staff up to 34% and increasing the number of female employees to eight.

D. Financial implications

13. The Internal Audit Budget is currently on target (any underspend on salaries to date will be off set against the cost of employing contractors).

E. Background papers

None

F. Contact details

Report author: Peter Tickner, Director of Internal Audit, MPA.

For information contact:

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

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