Minutes

Minutes of the special meeting of the Finance and Resources Committee held on 17 September 2009 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Steve O’Connell (Chairman)
• Reshard Auladin
• Faith Boardman
• John Biggs
• Dee Doocey
• Deborah Regal
• Graham Speed
• Richard Tracey

MPA officers

• Catherine Crawford (Chief Executive)
• Jane Harwood (Assistant Chief Executive)
• Annabel Adams (Deputy Treasurer)
• John Crompton (Committee Services)

MPS officers

• Ailsa Beaton (Director of Information)
• Jane Bond (Acting Director Property Services)
• Peter Greig (Director Core Finance)
• Anne McMeel (Director of Resources)
• Patrick Phillips (Deputy Director of Information)
• Peter Ross (Director, Programme Delivery Property Services)
• Martin Tiplady (Director of Human Resources)
• Gordon Mitchell attended for consideration of agenda items 12 and 17

24. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Cindy Butts and Kit Malthouse. An apology for lateness was submitted on behalf of Reshard Auladin.

25. Declarations of interests

(Agenda item 2)

No declarations were made.

26. Minutes of the meeting held on 30 July 2009 (Part 1)

(Agenda item 3)

Resolved – That the minutes of the meeting of the Committee held on 30 July 2009 be agreed and signed as a correct record.

27. Business considered by the sub-committees

(Agenda item 4)

Oral updates were provided as follows:

Resources Sub-Committee

Faith Boardman reported that the Sub-Committee had considered the latest quarterly Treasury Management monitoring report and had requested the Deputy Treasurer to submit a report which considered the options for using a slightly less risk-adverse approach to investment.

Productivity and Performance Sub-Committee

Deborah Regal reported that the Sub-Committee had held a joint meeting with the HR and Remuneration Sub-Committee earlier that day. A number of reports on issues of interest to the two sub-committees had been considered and there had been a very useful discussion.

Estate Panel

Graham Speed advised that the Panel was due to meet directly after the meeting.

New Treasurer

The Chairman reported that Bob Atkins had been appointed as the new Treasurer. He thanked Annabel Adams for her support during the period of the vacancy.

Resolved – That the oral update be noted.

28. Revenue and capital budget monitoring report 2009/10 – period 4

(Agenda item 5)

A report was submitted which provided an update on the revenue and capital budget monitoring position for 2009/10 at period 4 (to the end of July). The revenue budget is forecast to overspend by £22.3m (approximately 0.7% of budget).The capital programme as at period 4 shows year to date total expenditure of £35.1m. This total represents 15% of the revised annual budget of £234.2m. The forecast for the year of £218.5m is £15.7m below the revised annual budget.

Resolved – That

1. the year to date and forecast position for revenue and capital budgets be noted; and
2. the request for a budget virement in excess of £5m detailed in paragraph 47 be agreed.

29. Efficiency plan monitoring – as at first quarter 2009/10

(Agenda item 6)

This report provided an update on the monitoring of the MPA/MPS) 2008/09 – 2010/11 efficiency plan. Overall, the forecast indicates an over-achievement against the 2009/10 cumulative efficiency target (year 2 of the 3 year plan) by £4.4m.

Resolved – That the cumulative position against the efficiency plan be noted.

30. Review of Financial and Contract Regulations

(Agenda item 7)

This report provides details of proposed changes to financial and contract regulations and the scheme of delegation highlighted as part of the annual review. Only minor changes are proposed as a more fundamental review of the regulations was undertaken in 2007.

Resolved – That the proposed amendments to financial and contract regulations and the scheme of delegation be approved for submission to the Full Authority at its meeting on 24 September 2009.

31. Icelandic Bank – Impairment adjustment

(Agenda item 8)

This report requested the Committee’s approval to transfer an additional £2.8m from reserves to fund an additional adjustment in the 2008/09 Statement of Accounts, in respect of the potential level of recovery of Icelandic bank debt.

The Committee agreed to consider this report which had been available at the time of the main agenda despatch. Dee Doocey stated that she did not appear to have received this report. It was noted that it had been despatched on 14 September. It was agreed that the member be advised as to the despatch arrangements.

Resolved – That the proposed impairment adjustment to the Statement of Accounts 2008/09 and consequent reduction in reserves be approved.

32. Estates update

(Agenda item 9)

A report was submitted which provided an update in regard to the estates responsibilities covered by Property Services.

The Chairman congratulated the officers for the gold award as part of the Mayor’s Green Procurement Code. It was agreed that a visit be organised for members interested in seeing the completed Greenwich patrol base,

Resolved – That the report be noted.

33. Stage 2 of the Safer Neighbourhoods Property Programme – update

(Agenda item 10)

Following approval by the Finance Committee in December 2007. Contracts for the Stage 2 of the Safer Neighbourhoods Property Programme were awarded in January 2008. The first 26 bases have been completed and work is progressing with a further 63 already in the process of acquisition/development (at end of July 2009) This report sought to update Members on the progress made in the last six months.

The Chairman asked to be supplied with a list of the bases which had opened.

John Biggs asked to be sent copies of reports which had previously been submitted on the SN property programme.

Resolved – That the report be noted.

34. Procurement/ contract items considered by the Resources Sub-Committee

(Agenda item 11)

This report sets out the comments made by the Resources Sub-Committee on reports which are also on the agenda for this meeting of the Finance and Resources Committee.

Resolved – That the report be noted.

35. Corporate insurance renewal 2009

(Agenda item 12)

A report was submitted which outlined the insurance renewal programme for 2009/10 and sought approval for various approval.

Resolved – that

1. The renewal of the insurance programme with effect from 1 October 2009, on the basis outlined in this report and the exempt appendix be agreed; and
2. it be noted that subject to confirmation of the final property insurance premium and in line with current policy, the identified savings for the 2009 renewal are up to £65,914, of which savings of £12,447 in 2009/10, and £24,895 in a full year, will be transferred to motor liability reserve on the balance sheet and savings on the property policies of up to £20,509 in 2009/10, and up to £41,019 in a full year, will be transferred to the property damage insurance reserve on the balance sheet.

36. Exclusion of press and public

(Agenda item 13)

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

37. Exempt appendices to estates update

(Agenda item 14)

The information was noted.

38. Exempt appendix to stage 2 of the Safer Neighbourhoods property programme

(Agenda item 15)

The information was noted

39 Report from Resources Sub-committee

(Agenda item 16)

This report sets out the comments made by the Resources Sub-Committee on agenda items 16 to 20

40. Exempt appendix to corporate insurance renewal

(Agenda item 17)

The information was noted

41. Real Time Communications Tranche 1 – Essential Telephony Replacement

(Agenda item 18)

Recommendation relating to an award was agreed.

42 Provision Of Temporary Agency Worker Services

(Agenda item 19)

A contract was awarded.

43. Transforming HR

(Agenda item 20)

Recommendations relating to delaying the introduction of THR were adopted.

44. Minutes of the meeting held on 30 July 2009 (part 2)

(Agenda item 23)

Agreed and signed as a correct record.

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