Report from the Sub-committees of the Finance and Resources Committee

Report: 4
Date: 23 June 2011
By: Chief Executive

Summary

This report contains a summary of the business considered by the sub committees of the Finance and Resources Committee.

A. Recommendations

That members note the report.

B. Supporting information

1. This report covers the following meetings:

• Estate Panel – 23 May 2011
• Resources and Productivity Sub-committee –13 June 2011

Estate Panel

2. Amongst the matters discussed at the meeting on 23 May were several reports which are also on the agenda for today’s meeting of the Finance and Resources Committee. The reports which are before members today reflect the comments made by the Panel.

3. On 10 June the Panel carried out its latest visit as part of a rolling programme. On this occasion the visit included the former Wood Green police station, Jubilee House and Brixton police station all of which are the subject of reports to the Finance and Resources Committee.

4. The next meeting of the Estate Panel is on 23 June immediately following the meeting of the Finance and Resources Committee

Resources and Productivity Sub-committee – 13 June 2011

Comments on reports on the agenda for today’s Finance and Resources Committee

Treasury Management Financial Review 2010/11

5. This report presents the Annual Review of Treasury Management for the 12 month period ended 31 March 2011 and includes an update for quarter 4 in 2010/11. The report provided assurance that all the transactions undertaken during the year were conducted within the criteria set out in the 2010/11 Treasury Management strategy. Members indicated that they considered that the investment income of £0.229m, although modest in historical terms, was reasonable in the current circumstances and was in line with expectations given the approved approach to exposure to risk. The report also provides, at paragraphs 30 and 31 an update with respect to Landsbanki.

6. The Sub-committee supported the recommendations In accordance with CIPFA guidance the report will also be considered at the full Authority meeting on 28 July 2011

Routine Contracts Programmes

7. This report sets out the latest version of the Routine Contracts Programme, which provides members with detail on the contracts above £1m that the MPS wishes to let over the next twelve months and the details of those contracts let since the last report. The Sub-committee supported the recommendations.

Facilities Management Services contract

8. At its meeting in December 2010 the Finance and Resources Committee considered a report which outlined opportunities identified to realign the two FMS contracts in use in the estate and supported further work in regard to the renegotiation of contract changes. A report has now been submitted which updates members on the progress made since then and proposes a number of contract changes to bring clarity and more flexibility to the existing contractual provisions to support the maintenance and repairs of the MPA’s estate. When the original report was considered members indicated that there needed to be greater clarity on what was meant by the protection of the profit element and this is discussed in the report.

9 In December 2010 the Finance and Resources Committee resolved that the changes should be approved by the Finance and Resources Committee having been initially considered by the Resources and Productivity Sub-committee . The Sub-committee supported the recommendations.

Other reports considered but not on the agenda for today’s FRC meeting

Capital Programme –quarterly monitoring report 2010/11 –quarter 4

10. This report provided members with information on the capital outurn for the financial year 2010/11. As at the end of the financial year, outturn expenditure for 2010-11 is £190.5m, representing 68.9% of the revised annual approved budget of £276.3m. The report provided details of the financial and non-financial impact of significant project slippages. Amongst the appendices provided was one which showed the performance of projects with a whole life budget greater than £5m.

11. The financing situation was monitored throughout the year to ensure the capital programme remained affordable and sustainable in accordance with requirements of the Prudential Code. The funding take up was lower than planned and the under utilised values will be carried forward to assist with the funding of the programme 2011/12 - 2018/19. The Finance and Resources Committee will receive the first revision of the capital programme at its next meeting. This will include information on the detailed funding deployment.

Overtime Costs –quarter 4

12. The report advised that the provisional outturn for 2010/11 indicates an overall underspend on overtime of £0.4m against a budget of £140.4m (0.3%). The underspend was achieved in the context of the in-year budget cuts to overtime following reductions in Home Office grant funding, the need to provide significant public order support during the student and TUC demonstrations and the continued reduction in overtime expenditure over the last 3 years. Total expenditure for Police Officer overtime in 2010/11 was £24.3m less than in 2009/10 and £34.9m less than 2008/09. The budget set for 2011/12 expects to see overtime expenditure reduced by a further £12.6m (9%) on 2010/11 levels. Members indicated that the position outlined in the report was satisfactory but noted that scope for any substantial further reduction was likely to depend on the implementation of the recommendations arising from the Winsor review of Police Officer and Staff Remuneration and Conditions following PNB negotiation.

13. Members requested that future reports provide some information on the impact on overtime from the implementation of the Major Change Programme.
MPS Change Programme update

14. An update was provided on the progress of the MPS change programme portfolio (formerly known as the SIP portfolio) with a particular focus on the following key change programmes for which a substantial amount of detail was provided:

• DoR: Developing Resource Management
• TP: TP Development Programme
• HR: Training Modernisation
• DoI: Lean

15. The report also advised that the management of dependencies (an area which has previously been highlighted by members ) is underway across the MPS change programme with the Strategy and Improvement Department (S&ID) reviewing dependencies through the corporate risk management process.
Empress State Building –Transfer of Hard FM Services (exempt)

16. The Sub-committee approved a change in strategy for the management of life cycle, service desk and planned and reactive services at Empress State Building. This is by mutual agreement with the current provider of these services. Under the new arrangements the life cycle maintenance is to be managed in-house as applied in the majority of the MPA estate. The report contained information on the anticipated revenue savings which the new arrangement will deliver.

Other reports considered

17. The Sub-committee received the quarterly update on the early payment initiatives to small and medium enterprises. This showed that in March 81% of invoices were paid on time. The ambition remains to increase this to 85% which is felt to be realistic given the volume of invoices and the need to have adequate controls in place. The Sub-committee also received its regular reports on the summary of the request for contract action within the previous quarter and on the performance of the CapGemini contract. No areas of concern were identified by members.

C. Other organisational and community implications

Equalities Impact

1. There are no race and diversity impact issues directly arising from this report. Any implications are addressed in the reports considered at the Sub-committee

Met Forward

2. The remit of the Resources and Productivity Sub-committee is largely in support of the Met Support strand, but there are no direct implications for the delivery of Met Forward arising from this report

Financial Implications

3. There are no financial implications directly arising from this report.

Legal Implications

4. Any implications are addressed in the reports considered at the Sub-committee.

Environmental Implications

5. Any implications are addressed in the reports considered at the Sub-committee.

Risk Implications

6. Any implications are addressed in the reports considered at the Sub-committee.

D. Background papers

None

E. Contact details

Report authors: John Crompton, MPA

For more information contact:

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

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