Minutes

Minutes of the special meeting of the Finance and Resources Committee held on 22 January 2009 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Steve O’Connell (Chairman)
• Faith Boardman (Vice-Chairman)
• Reshard Auladin (item 6 to 17)
• Dee Doocey
• Len Duvall
• Deborah Regal
• Graham Speed
• Richard Tracey

MPA officers

• Ken Hunt (Treasurer)
• Ruth Hastings Iqball (Committee Services)

MPS officers

• Anthony Doyle (Director , Procurement)
• Alan Croney (Director, Property Services)
• Simon Hart (Acting Director of Finance Services)
• Anne McMeel (Director of Resources)
• Chris Nason (Head of Service Analysis, Directorate of Information)

96. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Cindy Butts and Kit Malthouse (members).

97. Declaration of interests

(Agenda item 2)

No declarations of interest were received.

98. Minutes of the meeting held on 18 December 2008 (Part 1)

(Agenda item 3)

The minutes of the last meeting (part 1) were considered.

Resolved – That the minutes of the Finance and Resources Committee (F&RC) (Part 1) held on 18 December 2008 be agreed and be signed as a correct record.

99. Sub-committees

(Agenda item 4)

A report was received asking the Committee to note the work programme for the Resources Sub Committee and Productivity and Performance Sub-Committees. A note was also tabled on the proceedings of the Resources Sub Committee held on 16 January 2009.

Faith Boardman, Chairman of the Resources Sub Committee, stated that in the first meetings of the Sub Committee would feature a series of briefings on areas within its remit to bring members up to speed. She outlined other areas of work the Sub Committee would cover, noting that the work programme included a briefing on Police Use of Resources Evaluation, a subject also considered by the Corporate Governance Committee. This would need management to avoid duplication. Deborah Regal, Chairman of the Productivity and Performance Sub-Committee, added that that Sub Committee would be meeting on 3 February. The first two meetings would be informal and it was envisage that it would receive briefings from the Audit Commissioner, HMIC, etc. and look at case studies.

The report note table stated that

“The Sub Committee agreed to recommend to the Finance and Resources Committee
(a) That an amendment be made as follows to item 1, specifically that the financial limit under which it will take decisions on procurement activity be set at £30M, as follows…”In relation to procurement exercises, to consider and make recommendations to the Finance and Resources Committee on business cases and the subsequent award of contract following tendering when the total value is greater than £30M, below this figure the sub Committee will have delegated authority to take decisions”.
The Sub Committee agreed that there will need to be exceptions to the general application of this delegation – contracts that raise questions of principle or financial policy, possess unusual features or involve particular risks or might arouse particular public interest or publicity – these cases would need consideration by the Finance and Resources Committee; and
(b) That an amendment as follows be made to item 4: “To provide strategic oversight of the MPS compliance and governance frameworks for procurement activity throughout the service.”

Some members were unhappy with the proposal that the Sub Committee be delegated to make procurement decisions up to £30 million, and felt that it should only make recommendations to the F&RC. In answer to questions, members were informed that £30 million was not an arbitrary figure, but based on consideration of the routine contract programme, there were a large number of small contracts below that limit and if the delegation was not agreed the F&RC committee would have to consider some 26 contracts. Safeguard for the F&RC was that all novel or controversial decisions would be referred to the parent Committee, all decisions would be referred to the Chair before they were submitted to the Sub Committee and that all Sub Committee reports would be circulated to all F&RC members in good time. Members commented that they did not have time to read reports for committees they did not specifically sit on. In addition they saw it as a constitutional issue and felt a need for consistency around sub committees. The Chairman said he was relaxed about giving the Sub Committee delegated powers and would be inclined to agree in due course when members’ constitutional fears had been answered.

Resolved – That

1. the information concerning the Resources Sub-Committee and the Productivity and Performance Sub-Committee and the outline work programme as set out at Appendix 1 be noted; and

2. the recommendations arising from the first meeting of the Resources Sub-Committee concerning amendment to item 4 of the terms of reference be agreed; and

3. proposed change to the terms of reference of the Resources Sub Committee concerning levels of delegation for procurement activity be considered again at the next F&RC meeting following a review of the constitutional issues.

100. Revenue and capital budget monitoring report 2008/09 – period 8

(Agenda item 5)

This report provided an update on the revenue and capital budget monitoring position for 2008/09 at Period 8 (to the end of November). The revenue budget was forecast to underspend by £22.1m (approximately 0.7% of budget). The capital programme as at Period 8 (to the end of November) showed year to date total expenditure of £78.4m, representing 36.5% of the revised annual budget of £214.9m. The forecast for the year of £201m was £13.9m below the revised annual budget and £40.1m below the original annual budget of £241.1m.

A member felt the figures for number of police officers didn’t match those given in other reports to the authority, but agreed to discuss it outside the meeting.

Resolved – That the year to date and forecast position for revenue and capital budgets be noted.

101. MPS European Commission funding report

(Agenda item 6)

The Committee received a report providing an update on internal processes surrounding EU Funding and completed funding applications made to the European Commission in 2008. The Acting Director of Financial Services stated that the MPS was becoming more successful in making bids. Members suggested that the MPS should make joint bids with other agencies. The Director of Resources noted that that one of the Resource Directorate’s workstrands was dealing with partners, adding that bids were now coordinated across the MPS and linked to MPS priorities. A member asked for details of why the Operation Tripper bid had been unsuccessful.

Resolved – That

1. the current status of funding applications made by the MPS to the European Commission be noted; and

2. members be provided with information as to why the Operation Tripper bid had been unsuccessful.

102. Activity Based Costing results

(Agenda item 7)

Since 2003/04 the Home Office required that all police forces provide Activity Based Costing (ABC) information to agreed definitions and standards as part of the annual data requirement. The report provided an update on the 2007 08 ABC submission, highlighting key areas of MPS expenditure and also providing an update regarding the future of Activity Analysis and ABC. The Acting Director of Financial Services stated that shortly information would be made available to members on each BOCU. Members suggested that the next report on ABC be a briefing paper not report.

Resolved – That

1. the report be noted; and

2. next report on ABC be a briefing paper not a report.

103. Personal Insurance Indemnity Policy – annual progress report

(Agenda item 8)

The Finance Committee ratified informal approval of the Personal Insurance Indemnity Policy (PIIP) in November 2004. This followed agreement in principle by MPS Management Board that MPS personnel should be indemnified by the MPA in certain tightly defined situations where its own personal life and accident insurances did not provide an indemnity. At the time the then Finance Committee required that the PIIP be subject to annual renewal and that an annual progress report be provided summarising key developments since implementation of the policy. Members now received the 2008 report.

The Finance Committee had agreed that the Director of Resources approach the Home Office for a ‘top-up’ indemnity to cover any mass claims arising from a catastrophe situation. This move had also been supported by the Association of Police Authorities. The Home Office had responded by writing “we do not believe that it would be appropriate for Central Government to become involved in matters such as this”. Members felt this was unacceptable and requested that the Treasurer draft a further letter on behalf of the Chairman on this subject.

Resolved – That

1. the renewal of the policy be approved for a further 12 months;

2. activity in year in respect of enquiries about the policy and the volume of claims and/or payments be noted;

3. the Home Office response to a request for a central Government indemnity top up be noted; and

4. that the Treasurer draft a further letter on behalf of the Chairman to the Home Office.

104. MPA commitment to GLA four year responsible procurement plan

(Agenda item 9)

This report informs members of the new GLA four year Responsible Procurement Plan and sought approval for the targets and initiatives that MPA officers and the MPS has provisionally put forward in support for the Plan.

Resolved – That the provisional MPS targets and initiatives contained within the GLA four year Responsible Procurement Plan be approved.

105. Routine Contracts Programme

(Agenda item 10)

Members received a report setting out the latest version of the Routine Contracts Programme, providing members with detail of contracts above £1m that the MPS wished to let over the next twelve months on a rolling programme and contracts let since the last report. The Programme only covered known routine renewals and not the emerging requirements that would continue to be dealt with under current arrangements and brought to Committee where required.

Resolved – That

1. the report be noted; and

2. the latest version of Routine Contracts Programme be approved and the placement of OJEU advertisements be authorised where appropriate.

106. Banking and RBS update

(Additional item)

A report was received that had not been notified on the agenda. It had been circulated to members with less than five clear working days’ notice, however the Chairman agreed to receive it as an urgent item under the provisions of section 100B (4b) of the Local Government Act 1972 as it was of immediate interest to the members of the F&RC. The report provided members with an update on the banking sector and the MPA’s banker, the Royal Bank of Scotland (RBS). The Treasurer emphasised that the Government was supporting the bank and was unlikely to let it fail, and that the MPA would find it difficult to find another banker that offered the range of services supplied by the RBS. It was agreed members should continue to receive updates on this subject.

Resolved – That

1. the report be noted; and

2. regular reports be received on the financial position of the RBS.

107. Exclusion of press and public

(Agenda item 9)

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 3 and 7 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

108. Exempt appendices to Routine Contracts Programme

(Agenda item 12)

The exempt appendices were received.

109. Exempt appendix to item 9 - MPA commitment to GLA four year responsible procurement plan

(Agenda item 13)

(This item was dealt with after agenda item 14). An exempt appendix to the report at item 9 was received. Entitled ‘Update on implementation of early payment initiatives to small and medium enterprises (SMEs)’, it sought the Committee’s approval to proposed actions over the next six months in support of the Mayor’s initiative to support SMEs. It was agreed that a further report on the subject be received at the next meeting.

110. Quarterly update on variations to the Capgemini contract

(Agenda item 14)

An initial report, brought to the Finance Committee in February 2008, recommend quarterly updates on Capgemini contract variations. Such a report was now received.

111. Request for Authority to dispose of surplus properties for 2008/09 and 2009/10

(Agenda item 15)

The F&RC received a report proposing the disposal of a number of surplus residential and operational properties during 2008/09 and 2009/10 at a value equal to or in excess of the current estimated market value. It was agreed the residential property (with the exception of the property which was the subject of agenda item 16) should be marketed and the report deferred to the Estates Review Panel for further consideration on the marketing of operational sites. It was also noted that the Panel was formulating a disposal structure and that the capital programme was dependent on receipts from the sale of property.

112. Request for Authority to dispose of a property in Westminster

(Agenda item 16)

A report was received requesting approval to the proposed decant strategy and marketing for disposal of a property in Westminster. In answer to questions members were informed that tenants were being fully consulted. Disposal was agreed, with the proviso that if the estimated price could not be obtained, the decision would, as was normal practice, be returned to the F&RC for further consideration. A further report would be received in spring 2009.

113. Minutes of the meeting held on 18 December 2008 (Part 2)

(Agenda 17)

The minutes of the finance and Resources Committee (Part 2) held on 18 December 2008 were agreed and be signed as a correct record.

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