Minutes

Minutes of the special meeting of the Finance and Resources Committee held on 19 March 2009 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Steve O’Connell (Chairman)
• Faith Boardman (Vice-Chairman)
• Reshard Auladin
• Dee Doocey
• Deborah Regal
• Graham Speed

MPA officers

• Catherine Crawford (Chief Executive)
• Ken Hunt (Treasurer)
• John Crompton (Committee Services)

MPS officers

• Ailsa Beaton (Director of Information)
• Alan Croney (Director, Property Services)
• Paul Daly (Director of Exchequer Services)
• Chris Gibson (Supplier Performance Director, Procurement Services)
• Simon Hart (Acting Director of Finance Services)
• Anne McMeel (Director of Resources)
• Gabrielle Nelson
• Chris Porter (Head of SERIS, Forensics)
• Peter Ross (Director, Programme Delivery, PSD)
• Brita Sread

124. Apologies for absence

(Agenda item 1)

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

125. Declaration of interests

(Agenda item 2)

Graham Speed declared a personal interest in that his employer had been involved in the initial work on the acquisition of the site referred to in agenda item 23.

126. Minutes of the meetings held on 22 January and 5 March 2009 (part 1)

(Agenda item 3)

Resolved – That the minutes of the meetings of the Committee held on 19 January and 5 March 2009 be agreed and signed as a correct record.

Arising: Minute 101 - Operation Tipper – Noted that a briefing note had been submitted to the MPA and would be circulated to members.
Minute 103 - Personal Insurance Indemnity Policies - The Treasurer confirmed that the further letter requested by the Committee had been sent to the Home Office, but no reply had been received.

127. Sub-committees

(Agenda item 4)

Oral updates were provided as follows

Productivity and Performance Sub-committee 13 March

Deborah Regal reported that at its inaugural meeting the Sub-committee had agreed its work programme. A presentation on the performance management framework had been made.

Resources Sub-committee 16 March

Faith Boardman reported that there had been a presentation on the capital programme. The other focus of the meeting had been on treasury management and details had been provided on activity in the previous quarter. It has been agreed that all members would be offered training on treasury management to assist them in providing effective scrutiny, and the training would also be offered to members of the Finance and Resources Committee. The Chairman of the Sub-committee concluded by saying that ways of providing other support such as the appointment of a co-opted member with relevant expertise was also being examined to assist members when considering treasury management reports.

Estate Panel

Graham Speed advised that work on revising the estate strategy was proceeding. It was necessary to appoint a third member to the Panel in place of Len Duvall following his resignation from the Authority. Valerie Brasse had indicated that she would be willing to join the Panel.

Resolved - That

1. the appointments of Deborah Regal as Vice Chairman of the Resources Sub-committee and Faith Boardman as Vice Chairman of the Productivity and Performance Sub-committee be endorsed, and
2. Valerie Brasse be appointed to the Estate Panel.

128. Procurement financial limits - delegation to Resources Sub-committee

(Agenda item 5)

At its meeting on 22 January 2009, the Committee instructed that further consideration be given to the delegation limits of procurement action to the Resources Sub-committee. This report requested members to consider how they wished to proceed.

The Chairman said that having considered the matter further he now wished to propose that contract matters be handled as follows: in the first instance reports on all contract matters above the delegated limits set out in Financial Regulations (i.e. both procurement and property acquisitions and disposals) would be submitted to the Resources Sub-committee for initial consideration. The Sub-committee would then refer these items together with any comments it may have to the Finance and Resources Committee for final approval.

Resolved - That

1. the Resources Sub-committee be not given delegated authority to decide procurement matters; and
2. all contract matters be given initial consideration by the Resources Sub-committee prior to being submitted to the Finance and Resources Committee for decision in conjunction with any comments from the Resources Sub-committee.

129. Revenue and capital budget monitoring report 2008/09 – period 10

(Agenda item 6)

This report provided an update on the revenue and capital budget monitoring position for 2008/09 at Period 10 (to the end of January). The revenue budget is forecast to underspend by £22.1m (0.7% of budget). The capital programme shows year to date total expenditure of £241.8m (including the purchase of New Scotland Yard (£129m)). This total represents 70.3% of the revised annual budget of £344m. The forecast for the year of £312m is £32m below the revised annual budget.

In reply to points from members concerning the proposed transfers to Earmarked Reserves discussed at paragraph 39, the Director of Resources said that the proposals aimed to bring transparency to the preparation for closing of the 2008/09 accounts when final decisions would be made on reserves.

Resolved – That

1. members note the year to date and forecast position for revenue and capital budgets;
2. approval be given to a transfer of revenue expenditure to Earmarked Reserves relating to rephasing of the Safer Neighbourhoods Programme and other property programmes in future years;
3. approval be given to a transfer of revenue expenditure to Earmarked Reserves relating to rephasing of Information Technology expenditure for use on the Safer Neighbourhoods Programme in future years (paragraph 38 refers); and
4. pproval be given to a number of transfers to Earmarked Reserves relating to various initiatives where funds have been identified this year for use in future years (paragraph 39 refers).

130. Provisional Police and Community Safety Funding Settlement

(Agenda item 7)

The final Police Grant Report 2009-10 was announced by the Minister of State for Policing, Crime and Security on 21 January. This report provided details of the settlement which was as anticipated following the provisional Settlement in November.

The Treasurer reported that an announcement was still awaited on the position with regard to specific grant for dedicated security post funding for port policing.

Resolved – That the report be noted.

131. Borrowing to support the capital programme and/or deferral of police property disposal

(Agenda item 8)

This report outlined opportunities to consider additional funding for the capital programme and/or deferral of the disposal of police property.

Members felt that the proposals as set out in the report provided a possible way forward and should be explored further. A further report was requested which provided more information on the accountancy treatment of this approach – e.g. the asset life and also provided some actual examples of items which might be funded in this way and what the financial implications would be.

Resolved – That

1. the recommendations be not adopted at this stage; and
2. the matter be considered further at a future meeting and at that time members be provided with more information accountancy treatment of this approach, provided some examples of items which might be funded in this way and identified areas of pressure across the business groups.

132. Annual review of the schedule of fees and charges

(Agenda item 9)

This report set out information on fees and charges. It also provides details of charges for the special services of police and an explanation in respect of the current status of charging for the detention of prisoners in MPS cell accommodation.

Members referred to the statement in paragraph 37 concerning charging the Serious Organised Crime Agency for the use of MPS cell accommodation and questioned whether the Commissioner had the power to give such an undertaking.

Subject to clarification being provided on the position on cross charging outlined at paragraph 37, it was

Resolved – That

1. the schedule of fees and charges be approved; and
2. the proposal to maintain the charges for the provision of copy documentation detailed at table as at April 2008 rates be endorsed.

133. Treasury Management and Investment Strategy 2009/10

(Agenda item 10)

A report was submitted which set out the recommended Treasury Management and Investment Strategy for 2009/10.

Dee Doocey said that she did not feel able to support the recommendation as she did not have the relevant expertise.

The Chairman reminded the meeting of the information provided by the Chairman of the Resources Sub-committee concerning the provision of member training in this area (see under minutes 127)

Resolved – That the Treasury Management and Investment Strategy for 2009/10 be approved.

134. Provisional MPA/MPS efficiency plan for 2009/10 and monitoring report for 2008/09

(Agenda item 11)

This report set out the financial aspects of the provisional MPA/MPS Efficiency Plan for 2009/10, and provided an update on the monitoring of the 2008/09 – 2010/11 Efficiency Plan. Overall, the forecast indicates an over-achievement against the 2008/09 efficiency target of £2.2m.

Copies of the full version of Appendix 2 were tabled.

Resolved - That

1. the provisional plan for 2009/10 be approved; and
2. the position against the 2008/09 efficiency plan as at Quarter 3 be noted.

135. Property Services’ update

(Agenda item 12)

The report provided an update in regard to the responsibilities covered by Property Services and the specific issues that had been addressed since the last report.

Resolved –That the information in the appendices be noted.

136. Stage 2 of the Safer Neighbourhoods property programme – update

(Agenda item 13)

The award of contracts for the stage 2 of the Safer Neighbourhoods Property Programme was approved by the Committee in December 2007. Contracts were awarded in January 2008 and work to deliver the 124 bases contained within the programme has commenced. The first 13 bases have been completed and work is progressing with a further 58 already in the process of development. Stage 2 of the programme has been re-phased over 3 financial years rather than the 2 years originally approved.

Resolved – That the progress made on stage 2 of the Safer Neighbourhoods Property Programme be noted.

137. Changes to MPS procurement processes in support of the new MPA standing orders

(Agenda item 14)

At the July 2008 Full Authority meeting the MPA approved revised levels of authority for Single Tender Actions (STAs). This approval was provided on the basis that the Service could demonstrate appropriate levels of control and record the justification for granting STAs. The Authority also asked that Procurement Services played a significant role in the new approval process. This report briefed members on the proposed changes to internal MPS processes to meet these requirements, together with the required changes to the DP1049 form (the initial step that is required within the MPS to commence Procurement activity or tendering for goods or services) to capture the appropriate information and approval authority.

A copy of the DP1049 form had been made available for inspection in the members’ room prior to the meeting.

Resolved – That

1. the changes to MPS procurement processes and associated form (DP1049) be noted; and
2. approval be given to the increased delegated level granted to the MPS for exemptions to Contract Regulations (use of a Single Tender Action) to £100,000 with effect from 1 March 2009.

138. Identity and Access Management

(Agenda item 15)

This report provided an update on the progress of the Identity and Access Management Programme. The Programme is intended to run over a 5-year period of which one year has been completed.

Resolved – That

1. the progress achieved and work remaining on the Identity and Access Management Programme be noted; and
2. approval be given to the IAM Central Back-End contract award as detailed in at section C.1 and in the exempt Appendix.

139. Exclusion of press and public

(Agenda item 16)

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

140. Exempt Appendix to Provisional Police and Community Safety Funding Settlement

(Agenda item 17)

The exempt appendix was received and noted.

141. Exempt Appendix to Treasury Management and Investment Strategy 2009/10

(Agenda item 18)

The exempt appendix was received and noted.

142. Treasury Management action plan

(Agenda item 19)

The action plan was approved.

143. Implementation of early payment initiatives to small and medium enterprises

(Agenda item 20)

The actions taken to date to improve the time to make payment on undisputed invoices to SMEs were noted.

144. Exempt appendices to property services update

(Agenda item 21)

The exempt appendices were received and noted.

145. Exempt appendix to stage 2 of the Safer Neighbourhoods property programme – update

(Agenda item 22)

The exempt appendix was received and noted.

146. Request for authority to proceed with the proposed acquisition of semi-industrial property in Merton

(Agenda item 23)

The report was noted.

147. Provision of soft Facilities Management Services at Empress State Building

(Agenda item 24)

Approval was given to the recommendations in the report.

148. Exempt appendix to Identity and Access Management

(Agenda item 25)

The exempt appendix was received and noted.

149. Extension of Forensic Service Contracts for DNA Services and Drugs Examinations

(Agenda item 26)

Recommendations relating to the extension of the contracts were agreed.

150. Master Vendor Contract

(Agenda item 27)

Recommendations relating to the extension of the contract were agreed.

151. Minutes of the meetings held on 22 January and 5 March 2009 (part 2)

(Agenda item 28)

Agreed and signed as a correct record.

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