Statement of accounts 2006-07

3 The average assurancescore on internal controlis 2.9, significantly lowerthan the score of 2, neededto indicate that there areadequate systems ofcontrol in place4 Resource and financialplanning needed to bemore closely alignedThe current average assurance score of 2.9 is equivalent to thatreported in 2005-06. Internal Audit continues to work with seniormanagers in the MPS to improve the level of internal control acrossbusiness groups and have recently met with Business GroupManagers and established a key point of contact to help facilitatethe role of Internal Audit and increase awareness around internalcontrol issues. Internal Audit is also working with representatives fromTerritorial Policing and MPS Finance Services to implement a strategyfor strengthening controls at a local level.The process for 2008-09 has already begun and a key budgetprinciple is the need to align resources to MPS Strategic Priorities.The outcome will be seen within the final business plan wherestrategic priorities will be costed. In order to ensure that the centraland local planning processes are more closely aligned, it is necessaryto provide business groups with a clear corporate direction, whilstallowing some flexibility for local decision making. The intention is tomore tightly focus business group objectives to strategic objectives.These strategic objectives will be those identified for each of thestrategic priorities and will assist delivery of the MPS/MPA’s strategicoutcomes.15Statement on System of Internal Control5 There are weaknesseswithin the processes ofaccounting for fixed assets6 Risk management is not yetfully embedded throughoutthe organisationThe Fixed Asset Project Group continues to review and developthe Fixed Asset register. The intention is to hold a fundamentalreview of the fixed asset system on SAP in the first quarter of2007-08 to identify ways of improving the operation of the system.Reconciliations are now undertaken on a monthly basis. A financialand capital accounting timetable is currently being developed forthe Property Services Directorate, including timescales within whichreports and reconciliations need to be produced. This approach willthen be rolled out to the Directorate of Information.To reflect feedback on Phase 2 of the risk management engagementprogramme it has been agreed to refocus the Business RiskManagement Team’s primary support role on the BusinessGroup headquarters with the HQs supporting their own OCUs/departments. The risk management training programme continuesto embed awareness and understanding of risk managementacross the Service. Deployment of bow-tie risk analysis has provedparticularly successful. A “bow-tie” based approach to risk registersfor Met wide adoption is now being developed. The Corporate RiskReview Group has met four times and is already adding value. Adecision has been made to formalise it as a conduit for escalatingcorporate risks between the Business Groups and ManagementBoard. Terms of reference for the group have now been approved.Business Group processes for identifying and managing corporaterisks have recently been reviewed and approved.