Minutes

Minutes of the meeting of the Finance Committee held on 7 April 2005 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair)
• Richard Sumray (Deputy Chair)
• Reshard Auladin
• Richard Barnes
• Elizabeth Howlett
• Bob Neill
• Murad Qureshi
• Rachel Whittaker

MPA officers

• Catherine Crawford (Chief Executive and Clerk)
• David Riddle (Deputy Chief Executive and Clerk)
• Ken Hunt (Treasurer)
• John Crompton (Committee Services)

MPS officers

• Deputy Assistant Commissioner Richard Bryan
• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance)
• Terry Price (Director of Strategic Finance)
• Alan Croney (Director of Property Services)
• Anthony Doyle Acting Head of Procurement Services
• Helen Dean (Directorate of Strategic Development) attended for consideration of agenda item 7

138. Apologies for absence

(Agenda item 1)

No apologies for absence were submitted.

139. DECLARATIONS OF INTERESTS

(Agenda item 2)

The Director of Strategic Finance made a personal declaration in respect of agenda item 9. He explained that the was a Management Committee member of one of the bodies which had received a grant in 2003/04

140. Minutes 17 February 2005

(Agenda item 3)

Minute 124 Minutes of the meeting held on 20 January

The additional information requested on Annual Review of Fees and Charges was tabled and it was agreed that it be appended to the minutes.

The information requested on matched funding for the key worker housing scheme was include in the report at agenda item 10

Minute 131 review of residential rents and service charge Members requested that the minute be amended to reflect the fact that they had requested the report on the residential estate should be considered at the 23 June meeting of the Committee. It was also requested that the commissioning brief for the report be sent at the earliest opportunity.

Resolved - That subject to the foregoing the minutes of the meeting held on 17 February 2005 be agreed and signed as a correct record.

141. Chair and Member update

(Agenda item 4)

The Chair welcomed Ken Hunt to his first meeting of the Finance Committee as Treasurer to the Authority.

142. Revenue and capital budget monitoring 2004/05

(Agenda item 5)

A report was submitted which provided an update on the performance against the revenue budget as at the end of February . The forecast underspend at the year-end is £13.5M. The forecast capital expenditure for the year is £142.4 M which is £72.8M below budget.

In response to a request from Richard Barnes as to what recommendation 2 related to the Director of Strategic Finance apologised for the lack of clarity and explained that it was a request for a budget movement of £2.0m in respect of Property Services for a further contribution to the ODPM Key Home Buy Scheme as discussed at paragraph 21.

Members commented that greater clarity was needed on how information relating to income was shown – for example by showing a net figure.

Members acknowledged there were several individual references to the effects of Operation Bracknell but they said they would also wish to be advised of the overall position and for an indication how it might affect the outurn. The Director of Resources undertook to circulate a briefing paper. He said it was too soon to assess with certainty how it might affect the outturn. For example, there were indications that it might be the case that activity and hence expenditure in some other areas had been reduced at the height of the Bracknell activity. Discussions were taking place with the Foreign and Commonwealth Office and Home Office over the reimbursement of expenditure incurred. The Chief Executive and Clerk confirmed that the Chair of the Authority was receiving regular briefings on the progress of the claim and that Peter Martin, former Treasurer, was co-coordinating the claim on behalf of the MPA and the APA on a national basis. It was not expected that the general election would affect the progress of the claim.

Rachel Whittaker enquired about the total costs of CBRN kit . The Director of Resources undertook to ascertain whether it was possible to supply the information.

The Committee noted that the Morris Inquiry legal expenses costs shown in paragraph 19 related only to the use of reserves and asked to be advised of the full cost of the Inquiry. The Chief Executive and Clerk undertook to circulate this information.

In reply to a request for an explanation for the overspend on transport costs the Director of Strategic Finance said it was likely that this was due to Operation Bracknell. He undertook to advise how much was spent of the total appearing in this budget line related to overseas travel. In reply to a further point about the marked increase in the overspend for Corporate supplies and services, the Director advised that enquiries were being made into the reason for the overspend.

It was noted that many of the large favourable variances (pensions etc) would not occur in the following financial year while many of the budget pressures would remain.

Capital

The Chair requested that in order to assist the Committee the officers should always ensure that the terms “slippage” and “underspend” were always used correctly and consistently.

Members requested that they be supplied with information on the working of the ODPM key worker scheme and alternative schemes and that information on alternative providers be included in the report on the residential estate strategy.

Resolved –That

1. The latest revenue and capital forecasts be noted;
2. approval be given to a capital movement of £2.0m in respect of Property Services for a further contribution to the ODPM Key Home Buy Scheme; and
3. in the first instance the 2004.05 underspend be transferred to an MPA held reserve, pending further satisfactory consideration of 2005/06 revenue budget monitoring.

143. Cost Implications of Public Order Events

(Agenda item 6)

A report was submitted which set out the policing costs associated with major public order events in 2004.

A member expressed the view that it would be useful if comparative figures could be provided in future reports.

Resolved - That the report be noted.

144. Activity Based Costing Review 2004

(Agenda item 7)

This report sets out details of the Audit Commission’s review of the Activity Based Costing data from all police forces.

Resolved - That the report be noted.

145. Treasury Management and Investment Strategy 2005/06

(Agenda item 8)

This report set out the Treasury Management and Investment Strategy recommended for 2005/06.

Resolved - That the treasury management and investment strategy for 2005/06 be approved.

146. Police Property Act Fund

(Agenda item 9)

A report was submitted which presented the Police Property Act Fund accounts for 2003/04 and gave details of the grants which had been made in 2004/05. It also asked the Committee to consider the arrangements to consider the arrangements for the disbursement of funds in 2005/06.

In introducing the report the Director of Strategic Finance apologised for the fact that the report had not been included in the original agenda dispatch and for the fact that it had been subsequently necessary to issue a revised version of the report. He also asked that it be noted that he was on the Management Committee of the St Mungo project, one of the pan London organisations which had received funding from the Fund. He stressed that he had taken no part in the submission of the grant application or its determination.

Members requested that the methodology for the allocation of monies to boroughs be reviewed for next year (2006/07).

In response to a question from a member the Chief Executive and Clerk undertook to ascertain whether the Safer London Foundation had produced a report on its activities.

Members asked that the report be sent to all MPA members who do not sit on the Finance Committee as it might be useful in connection with their duties as link members.

Resolved - That-

1. the 2003-4 annual accounts for the Police Property Act Fund be noted:
2. the grants made to date in 2004-5 from the funds available for distribution from the Police Property Act Fund be noted; and
3. funds for disbursement in 2005-6 be made as on the same basis as 2004-5 but the system be reviewed in respect of 2006-7.

147. Estate update

(Agenda item 10)

A report was submitted which updated members on the latest information on estate and Property Services matters.

Resolved - That the information on current estate issues be noted.

148. Arbour Square police station – approval of sale

(Agenda item 11)

This report sought members’ approval to the sale of the MPA’s interest in Arbour Square police station in Tower Hamlets.

Resolved- That approval be given to the unconditional sale of Arbour Square police station and Magistrates Court to the bidder identified in the exempt Appendix.

149. Facilities Management Information Centre –approval to initiate Invitation to Negotiate for retendering

(Agenda item 12)

A report was submitted which informed the Committee of the current status of the tendering of Property Services Facilities Management information centre to a qualified short-list of bidders.

In reply to a question from the Chair the Director of Property Services advised
that Internal Audit was satisfied with the proposal.

Resolved - That approval be given to the issue of the Invitation to Negotiate for the tendering of Property Services Facilities Management information centre to a qualified short-list of bidders as detailed in the exempt Appendix.

150. Routine Contracts Programme

(Agenda item 13)

A report was submitted which sets out the latest version of the Routine Contracts Programme.

Resolved That

1. the report be noted; and
2. approval be given to the latest version of the Routine Contracts Programme

151. Exclusion of press and public

(Agenda item 14)

Resolved - That under section 100A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business on the grounds that they involved disclosure of exempt information as detailed in paragraphs 7, 8, 9 and 12 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

Minute 152 agenda item 15 exempt Appendix to Arbour Square police station – approval of sale
The information was noted.

Minute 153 agenda item 16 exempt appendix to Facilities Management Information centre – approval to initiate invitation to negotiate for retendering
The information was noted.

Minute 154 agenda item 17 exempt Appendix to Routine Contracts Programme
The information was noted.

Minute 155 agenda item 18 Central London estate strategy update
An update report was noted.

Minute 156 agenda item 19 Bow Street
The Committee received an oral report.

Minute 157 agenda item 16 - exempt minutes of the meeting held on 17 February 2005
The minutes were agreed and signed as a correct record.

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