FINAL INTERNAL AUDIT REPORT

Transcription

1 FINAL INTERNAL AUDIT REPORT Management of the new Taxi and Private Hire (TPH) contract (IA /F) Leon Daniels, Managing Director, Surface Transport Audit Conclusion: Audit Closed 5 February 2016 Issue categories Agreed actions Satisfactorily addressed Partially addressed No longer applicable Not addressed Priority Priority Priority

2 CONTENTS EXECUTIVE SUMMARY... 3 STATUS OF AGREED ACTIONS... 4 APPENDIX 1 DISTRIBUTION LIST... 8 Audit information Version Draft versions issued 1 Draft report issued 28 Jan 2016 Page 2

3 EXECUTIVE SUMMARY Objective To review the efficiency and effectiveness of TfL's management of the new Taxi and Private Hire contract. Scope The audit focused on the control environment in relation to the following key risk areas: Governance and organisation for contract management Contract administration procedures, including document management Management of contractual obligations, including subcontractors Relationship and stakeholder management Monitoring and reporting on contract performance and costs Controls over contract variations and changes Management of claims and dispute resolution Controls over payments made in relation to the contract Risk management, including controls over fraud risks. The audit included visits to a sample of NSL and sub-contractor sites, with the focus on processes to produce performance monitoring reports and management of sub-contractors. Summary of findings Our Interim Internal Audit Report dated 27 July 2015 entitled Management of new Taxi and Private Hire (TPH) contract identified one priority 1 issue, relating to risk management, and three priority 2 issues. Management have now implemented all the actions agreed in respect of these findings and this audit is now closed. Page 3

4 STATUS OF AGREED ACTIONS Ref Agreed action Owner and due date Status 1. NSL to refresh the shared risk register in conjunction with TPH, capturing operational risks. 2. There will be a six monthly review of the updated risk register. 3. TPH key contractual risks will be captured and reviewed quarterly. 4. Key risks to be reviewed in contract meetings as a standing agenda item. & Graham Robinson 03/08/2015 & Graham Robinson 29/01/2016 & Graham Robinson 14/10/2015 & Graham Robinson 28/07/2015 The joint TPH/NSL risk register has been updated and is available on SharePoint. Relevant fields in the register include the best available and up-to-date information. SRDP (Service Rectification Delivery Plan) also serves as a risk monitoring and mitigating tool. Risk review is reoccurring, and review appointments are set in the diaries of all relevant individuals. A recurring meeting invite has been sent out to key persons involved. The agenda covered in the first part of the meeting is a Document Matrix review, and the second part, to review Joint Risk Register. Contractual risks are captured within the TPH Strategic Risk Register. Last review of all TPH risks (including contract risks) took place 14/10/15 and is planned to happen on a quarterly basis. Key risks are included in contract meetings as a standing agenda item. Page 4

5 Ref Agreed action Owner and due date Status 5. The SLA report wording will be amended to ensure consistency with Cognos report wording. 6. NSL will investigate the reasons for discrepancies in reports in conjunction with Change++ and Civica, and propose a rectification plan to TPH. 7. Error in the calculation formula Cognos PI 11 monthly report to be corrected. 8. A contract audit matrix will be completed that includes planned visits to NSL and key 22/10/ /08/ /10/2015 Stephen Wilson 23/07/2015 The SLA remains unchanged, however the Cognos PI 11 report that includes an extract from TOLA now displays titles for inspection type that are consistent with those in the SLA. NSL carried out an investigation of their IT system and no faults were found. The reason for discrepancies appear to be due to system users selecting parameters differing to those used within the QA report, when compared to PI11 reports. NSL corrected this issue by preventing users using variable parameters. NSL intend to develop pre-set parameters that are fixed to match parameters used within PI 11 report. This control is designed to ensure consistency of data between the reports. The formula in PI 11 report extracted from Cognos data has been corrected and shows an accurate result. The same template will be used in future PI reports with the formula already preset. A contract audit matrix has been completed and includes Page 5

6 Ref Agreed action Owner and due date Status subcontractors. a schedule of planned visits to NSL vehicle inspection centres and to key subcontractors, Liberty and Parseq. 9. Scheduled audits as per audit matrix will be carried out and feedback/reports produced. 10. Document Matrix will have a review schedule. Documents identified by the Document Matrix as out of date will be reviewed and updated, or archived if no longer relevant. 11. The SLA will be updated and version control introduced. 12. Current copies of key processes to be obtained from the contractor and subcontractor(s), and located Ed Davies 27/07/2015 Tracy Mack 27/08/2015 Tracy Mack 18/09/2015 Tracy Mack 03/08/2015 Internal Audit have been provided with examples of site visit feedback reports from Coulsdon, Heston and Crayford vehicle inspection centres have been completed by TPH contracts team members. This demonstrates that contract audits take place as planned. Document Matrix review invitations are sent out in Outlook as a recurring appointment at six-monthly intervals. SharePoint calendar is updated to include a review schedule, announcements are published, all relevant people notified. Document review will be by service provider NSL and TPH Contract Management. The SLA v2 has been uploaded to SharePoint and version control introduced. The footer of the document and electronic document title reflect the new version. Parseq process flowchart for scanning has been obtained from the sub-contractor and is now located in SharePoint. Page 6

7 Ref Agreed action Owner and due date Status in Share Point. 13. Parseq Output Report headings to be updated to align with the SLA. 03/08/2015 Taxi output report produced by Parseq has been amended. The header of the report is now consistent with the SLA requirement. Page 7

8 APPENDIX 1 Distribution list This report was sent to Leon Daniels, Managing Director ST, by Clive Walker, Director of Internal Audit, and copied to: Helen Chapman Peter Blake Garrett Emmerson Graham Sarson Graham Robinson Stephen Wilson Tracy Mack Ed Davies Patrick Doig Karlene Reid Nigel Blore Andrea Clarke Ian Nunn Howard Carter Karl Havers General Manager of London Taxi & Private Hire Director of Service Operations Chief Operating Officer - Surface Transport Executive Manager TPH Head of Licensing TPH Interim Contracts Manager TPH Assistant Commercial Manager Contract Policy & Monitoring Advisor Contracts Manager TPH Director of Finance ST Head of Risk & Assurance, ST Head of Group Insurance Director of TfL Legal Chief Finance Officer General Counsel EY Page 8