Police Property Act Fund

Report: 07
Date: 23 April 2009
By: Director of Resources on behalf of the Commissioner and the Treasurer

Summary

This report This report on the Police Property Act Fund (PPAF) provides:

• A summary of the 2007/08 annual accounts;
• The 2008/09 grant budget outturn;
• Proposals for the allocation of the 2009/10 grant budget

A. Recommendations

Members are invited to:

1. Note the report on the 2007-08 annual accounts for the Police Property Act Fund.
2. Note the outturn of the 2008-09 grants budget.
3. Consider proposals for the allocation of the 2009-10 grants budget.

B. Supporting information

Background

1. The Police (Property) Act 1897 and subsequent Police (Property) Regulations 1997 apply to property that is in the possession of police where the owner of the property cannot be identified and where no order of a competent court has been made.

2. Subject to the provisions of the 1997 Regulations the proceeds of all sales are retained separately in the Police Property Act Fund (the PPAF). The income derived from funds invested is added to and becomes part of the PPAF.

3. The PPAF may then be used to meet the expenses incurred in the conveyance, storage, safe custody and sale of the property and to make payments for charitable purpose. The PPAF meets direct cost expenditure, such as auction costs, and a notional annual administration charge of £100,000 to the MPS.

4. Additionally cash that has been seized for the purpose of a criminal investigation and retained in order to establish its lawful owner and where there are reasonable grounds for believing that it has been obtained in consequence of an offence is held in the Detained Monies Account (DMA). Detained money is retained until directions are received from a Court or, if a case does not reach a hearing, from the officer in the case. This does not include cash sums seized and detained under the Proceeds of Crime Act 2002 (and subsequent amendments) and administered separately within Finance Services.

Annual accounts

5. Two sets of annual accounts are prepared recognising the distinction between the DMA and sums that are appropriate to the PPAF. In accordance with financial safeguards established by Finance Committee in February 2004 copies of the PPAF and the DMA 2007/08 annual accounts have been submitted to the MPA Treasurer. A summary of the PPAF income and expenditure account 2007/08 and balance sheet as at 31 March 2008 are set out at Appendix 1.

Report on the PPAF Grant Budget 2008-09

6. On 17 April 2008 Finance Committee agreed a 2008/09 allocation of £300,000 to boroughs. Of this allocation £269,000 has been spent.

7. A breakdown of the 2008/09 budget and details of awards made are attached at Appendices 2 and 3.

Safer London Foundation (SLF)

8. The PPAF provided financial assistance for the setting up of the SLF and in 2006 received a further request for an award, which was considered by the MPA Co-ordination and Planning Committee (COP) on 7 December 2006.

9. COP awarded grants to the SLF of £236,000 for 2006-07 and £175,000 for 2007/08 and committed to £100,000 for 2008/09. These awards were subject to the SLF:

• submitting twice yearly reports to the MPA on its work programme and progress in fund raising, to enable the MPA to monitor the movement towards self financing status and the general pace and effectiveness of the SLF Work Programme;
• demonstrating in its annual programmes how it will work with the MPA and MPS to build community capacity at Safer Neighbourhood Panel level;
• submitting audited accounts

10. MPA officers are in regular contact with the SLF and the MPA authorised the release of the 2006-07 and 2007-08 awards, the conditions at paragraph 9 having been achieved. The commitment against the fund of £100,000 for 2008-09 remains (showing as a creditor in the 2007-08 accounts) and will be released to the SLF once the MPA are further satisfied that SLF continue to satisfy the paragraph 9 conditions.

Detained Money Account - sums retained for over six years

11. Finance Committee of 20 April 2006 was advised that legal advice had established that detained money in police possession in excess of six years where no claim has been received could safely be considered as PPAF money. At 1 April 2008 such sums detained in the twelve months from 1 April 2001 to 31 March 2002 were reclassified resulting in the transfer of £498,717 from the DMA to the PPAF.

Proposals for the allocation of the Grant Budget 2008/09

12. Boroughs have been advised that any 2008/09 awards not allocated to projects will be withdrawn and redistributed in 2009/10.

13. Appendix 2 shows an underspend of £31,000 against the borough 2008-09 grant budget.

14. The transfer of funds from the DMA, explained at paragraph 11, increases sums available for allocation. The 2007/08 income and expenditure account at Appendix 1 confirms that the fund is running at a surplus. However income streams to the PPAF are uncertain particularly income received from the sale of seized property. The MPS view is that income from sales is unlikely to match previous levels and that a prudent approach should be taken in setting the budget for grant allocations.

15. It is proposed that the 2008-09 underspend of £31,000 and an additional £269,000 should be allocated in 2009/10. This gives a total allocation of £300,000 and it is suggested that for 2009/10 this is again allocated to Boroughs only. While this does not provide specifically for London wide programmes the focus on local initiatives complements SLF activity.

16. In determining the allocation to Boroughs it is proposed that the PPAF formula is again used. This formula was established in 1998 and is based on Borough statistics for five variables with equal weighting:

• Population
• Unemployment level 16 to 24 year age range
• Deprivation factors
• Recorded offences
• Recorded offences 10 to 16 year age range

17. The PPAF formula was devised specifically to underpin the specific aims and objectives of the PPAF. Grants are to assist victims of crime, assist those vulnerable to crime and to divert people, especially the young, away from crime. The data for each of these elements across the boroughs was updated in 2006 and provides the allocations set out at Appendix 4.

Summary

18. The MPS proposes for 2009/10 that:

• the 2008-09 underspend of £31k is withdrawn and redistributed.
• the underspend and an additional £269k provides a total of £300k
• the £300k is allocated to Boroughs only.
• the allocations to Boroughs are again based on the PPAF formula percentages as shown in Appendix 4.
• current practice continues and boroughs are advised that these funds are available for 2009/10 and that any underspend will be withdrawn at year end for reallocation in future years.

C. Race and equality impact

1. Grants are awarded to organisations whose work encourages a positive relationship between police and a wide range of local communities covering the full range of diversity within the Metropolitan Police area.

D. Financial implications

1. There are no financial implications in relation to the Metropolitan Police Authority Fund. The financial implications for the Police Property Act Fund are addressed above.

E. Background papers

• Finance Committee 20 April 2006
• Finance Committee 17 April 2008
• Co-ordination and Planning Committee 7 December 2006

F. Contact details

Report author(s): Paul Daly, Director of Exchequer Services, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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