Statement of accounts 2006-07

16Statement on System of Internal Control2006-07For 2006-07 the Authority identified three main internal control issues that required attention during 2007-08.Issue1 The Audit Commission’s interim audit has identified anumber of weaknesses within the Authority’s key materialsystems. The main weaknesses identified included:-• Insufficient evidence of appropriate controls in respectof accounting for fixed assets• A lack of evidence in the operation of key controls inpensions and payroll monitoring• Weaknesses in the preparation, timeliness andevidencing of bank reconciliations performed• Control account reconciliations not being performedand reviewed on a timely basisActionA number of issues raised in the interimreport have now been addressed.However it is important that the MPSmonitor the situation to ensure thenecessary controls continue to beused in the future.With regard issues yet to be addressedthe MPS have drawn up an actionplan. Progress in implementing this willbe closely monitored by the CorporateGovernance Committee as part of thequarterly review of the Statement ofInternal Control.2 Contract regulations need to be followed at all timesto ensure value for money is achieved when awardingcontracts3 Whilst Internal Audit have generally found adequateand effective operating procedures within the MPS,key controls have either not been applied, appliedinappropriately or not applied in time to provide aneffective control environment. Therefore the averageassurance score on internal control has not changedduring 2006-07 and remains at 2.9. The main areas ofconcern are as follows:-• Delegated authorities - The MPS have yet to put inproper arrangements• Procurement of services - there continues to beconcerns around contracts being tendered inaccordance with Public Contract regulations and MPAregulations• BOCU Financial Control framework - number of areasof weakness need to be addressed• Information and Data Quality - whilst there have beensignificant improvements reviews have identifiedmajor data quality shortcomings in some key MPSsystems.Contract regulations have nowbeen revised, the MPA/MPS needto put in measures to promote andcommunicate the new regulations andmonitor compliance.Supporting guidance will need tobe reviewed in light of the newregulations.The MPS need to strengthen thecurrent systems of internal controlin place so that improvements in theassurance score can be achievedduring 2007-08.Internal Audit will continue to monitorprogress in improving the effectivenessand efficiency of internal control,reporting back to the CorporateGovernance Committee on a quarterlybasis.Len DuvallChair of the Metropolitan Police AuthorityCatherine CrawfordChief Executive and Clerk to theMetropolitan Police AuthorityOn behalf of the members and senior officers of the Metropolitan Police Authority and Metropolitan Police Service.