Minutes

Minutes of the meeting of the Finance and Resources Committee held on 17 June 2010 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Faith Boardman (Vice Chair in the Chair)
• Reshard Auladin (until agenda item 11 )
• Chris Boothman
• Dee Doocey
• Graham Speed

MPA officers

• Catherine Crawford (Chief Executive)
• Bob Atkins (Treasurer)
• John Crompton (Treasury Team)

MPS officers

• Ailsa Beaton (Director of Information)
• Jane Bond (Director of Property Services)
• Paul Daly (Director of Exchequer Services)
• Doug Fuller (Programme Director THR)
• Mark Gore (Commander, TP)
• David Imroth (TPHQ Emerald Custody Directorate)
• Anne McMeel (Director of Resources)
• Gordon Mitchell (Strategic Insurance Manager)
• Nick Rogers (Director of Finance Services)
• Peter Ross (Director, Programme Delivery PSD)
• Alison Spackman (Commercial Manager, Property Services)

168. Apologies for absence

(Agenda item 1)

Apologies for absence were submitted on behalf of Steve O’Connell, John Biggs and Neil Johnson.

On behalf of the Committee the Chair of the meeting congratulated Nick Rogers on his appointment as Director of Finance Services.

169. Declarations of interests

(Agenda item 2)

No declarations were made.

170. Minutes of the meeting held on 22 April 2010 (Part 1)

(Agenda item 3)

Resolved – That the minutes of the meeting of the Committee held on 22 April 2010 be agreed and signed as a correct record.

171. Delegated powers to Finance and Resources Committee and Sub-Committee

(Agenda item 4)

This report reviewed the current delegated powers of the Finance and Resources Committee and its sub committees, including the estates panel making recommendations where appropriate to improve the current decision making processes, ensuring that the Authority has in place governance arrangements proportionate to the risk involved.

Dee Doocey confirmed that she supported the proposals. The Chair commented that she also supported the new arrangement which would mean less duplication between the Resources and Productivity Sub-Committee and the Finance and Resources Committee.

Resolved –That

1. the proposed changes to the delegated powers of Resources and Productivity Sub Committee and Olympics Sub Committee be approved for forwarding to the Full Authority for approval;and
2. approval be given to a review of the terms of reference of Finance and Resources Committee and its Sub Committees, including the Estates Panel.

172. Business considered by the sub-committees

(Agenda item 5)

A report was submitted which contained a summary of the business considered by the Resources and Productivity Sub-Committee and the Estate Panel since the last meeting of the Finance and Resources Committee.

Resolved – That the report be noted.

173. Revenue and capital budget monitoring 2009/10 – provisional outturn

(Agenda item 6)

The report provided an update on the provisional & unaudited outturn position for revenue and capital budgets in 2009/10. The revenue budget is underspent by £2.9m (0.1% of budget). The provisional outturn takes account of proposed transfers to earmarked reserves as part of the year-end process of £15.7m. The provisional outturn for the Capital Programme is £186.3m, which is £27.7m below the revised budget of £214m.

In reply to questions the Director of Resources advised that members had been previously informed of the likelihood of an overspend on discretionary pensions costs (paragraph 34) The expenditure was rising earlier than anticipated in the medium term plan and consideration was being given to transferring the budget to DHR to improve control. The Chair requested that future budget monitoring reports contain more information on the deployment of officers from Territorial Policing to the business groups. The Director of Resources confirmed that this information would be made available to the Committee and the HR and Remuneration Sub-Committee.

Resolved –That

1. the provisional & unaudited outturn position against the revenue and capital budgets for the year be noted;
2. the write-off of £1.67m penalty interest relating to funds deposited with the Icelandic bank, Landsbanki (paragraph 5) be agreed;
3. the proposed “business as usual” transfers to reserves of £15.7m (paragraph 6) be agreed;
4. the transfer to reserves of £1.75m relating to the Transforming HR programme (paragraph 7) be agreed;
5. the proposal to reduce the third party provision for legal and accident claims by £3.3m (paragraph 8) be agreed; .
6. the transfer to reserves of £1.13m relating to the Modernisation reserve (paragraph 7) rising to £4.43m subject to agreement by Audit Commission to an adjustment to the third party provision (paragraph 8) be agreed; and
7. it be noted that a detailed review of the capital outturn is underway and that a paper will be produced in July for members to consider the re-phasing of projects into 2010/11.

174. Treasury management financial review 2009/10

(Agenda item 7)

This report presented the Annual Review of Treasury Management for the 12 month period ended 31 March 2010 and included an update for Quarter 4 2009/10.

The Treasurer advised that he was a member of the National Steering Group of the Local Government Association which was co-ordinating the response on behalf of local authority creditors for the return of Icelandic deposits. This approach meant a considerable reduction in the cost per local authority. He would continue to update members on the legal action, subject to any necessary legal constraints. Consideration was also being given to the provision of a briefing for the members of all the authorities affected.

Resolved – That

1. the 2009/10 annual report and 4th Qtr update of the Treasury Management function be noted;
2. approval be given to the continued membership of the jointly funded creditor action for the return of Icelandic deposits; and
3. the statement of assurance from the Treasurer and Director of Resources be noted.

175. Efficiency plan monitoring–final quarter 2009/10

(Agenda item 8)

This report provided an update on the monitoring of the Metropolitan Police Authority/Metropolitan Police Service 2008/09–2010/11 Efficiency Plan. Overall, the outturn position indicates an over-achievement against the 2009/10 cumulative efficiency target (year 2 of the 3 year plan) by £1.9m

Resolved – That the cumulative position against the efficiency plan as at the end of 2009/10 be noted.

176. Special services agreement for the provision of a Safer Transport Command

(Agenda item 9)

A report was submitted which sought approval in principle to a new Section 25 Special Services Agreement between the MPA and Transport for London. The report advised that following a comprehensive joint review undertaken in 2008, the new Agreement consolidates the previous Special Services Agreements for the Transport OCU, Safer Transport Teams (STT) and Hub Teams (Operation Tyrol) and incorporates the "Bike Safe" and "London Safety Camera Partnership" activities, also previously governed by separate agreements. The report highlighted one area which was substantially different from the previous agreement as some additional constraints now apply to the recovery from TfL of liabilities arising out of provision of the special services, including a cap on TfL's liability of £75m per claim event or series of related events.

Resolved -That approval be given to the Section 25 Special Services Agreement between the MPA and Transport for London.

177. Estates update

(Agenda item 10)

This report provided an update on the estates responsibilities covered by Property Services

The Director of Property Services said that she was grateful to the Chief Executive and others for their work in support of the representations made to the GLA on the Section 106 aspects of the London Plan (paragraph 22 refers)

Resolved -That the report be noted.

178. Annual update on the patrol base and custody centre property programme

(Agenda item 11)

This report sought to update members on the progress and performance of the patrol base and custody centres programme to date and to provide an update on all those schemes included in the current seven year capital programme.

Resolved -That

1. the performance to date of the Patrol Base and Custody Centre Property Programme be noted;
2. approval be given to the Programme level change requests that have been processed since July 2009 and the associated budgets, as detailed in Part D (Financial Implications) below. These changes, identified in Section C9, were approved for inclusion by the relevant project board and will be funded from the approved programme budget; and
3. the expenditure of approved Programme budget on projects that enable Borough single Patrol sites within the existing MPS Property Estate, subject to the normal MPS and MPA Governance processes as identified in section B5f be approved.

179. Any other urgent business

(Agenda item 12)

There was none.

180. 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 paragraph 3 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

181. Exempt appendices to estate update

(Agenda item 14)

Information noted.

182. Exempt appendix to patrol base and custody centre property programme

(Agenda item 15)

Information noted

183. Exempt Report from Resources and Productivity Sub-Committee

(Agenda item 16)

The information was noted in connection with the relevant reports.

184. Exempt appendix to Safer Transport Command contract

(Agenda item 17)

Information noted.

185. Request for authority to take up an extension to the Metropolitan Police Information Centre contract

(Agenda item 18)

Recommendation relating to the extension of this contract was adopted.

186. Disposal of residential properties

(Agenda item 19)

Recommendations relating to the disposal of three residential properties were agreed.

187. Framework contract for support, maintenance and upgrade services for digital video recording systems, videowalls and ancillary audio / visual systems

(Agenda item 20)

Recommendation relating to the award of a contract was agreed.

188. Network Hardware Standardisation

(Agenda item 21)

Recommendation relating to the award of a discount agreement was agreed.

189. Corporate insurance reporting governance and strategy

(Agenda item 22)

Recommendations relating to the new approach were adopted.

190. Approval for write off

(Agenda item 23)

Recommendation relating to the write off of two irrecoverable sum was agreed.

191. Report from the Olympic and Paralympic Sub-Committee

(Agenda item 24)

Two business cases were approved.

192. Transforming HR

(Agenda item 25)

Recommendations relating to the Programme were agreed.

193. Minutes of the meeting held on 22 April 2010 (part 2)

(Agenda item 26)

Agreed and signed as a correct record.

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