Reports on the sub-committees of the Finance and Resources Committee

Report: 4
Date: 22 September 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 – 21 July and 12 September 2011
• Resources and Productivity Sub-committee –12 September 2011

Estate Panel

2. Amongst the matters discussed at the meeting on 21 July were the Forensic Science Service premises at Lambeth which was also considered at the full Authority meeting on 28 July. There is also an exempt report on the subject on the agenda for today’s meeting of the Finance and Resources Committee.

3. At a special meeting on 12 September the Panel were given an update on the Public Access/ Safer Neighbourhoods review. The opportunity was also taken to consider some of the implications for the estate of the disturbances in August. Members also considered the options for the estate at Hendon. Following further consultation a report on Hendon will be submitted to the Finance and Resources Committee in November. A briefing to which all members of the Authority have been invited is being held on 10 November.

4. The next meeting of the Estate Panel is on 22 September immediately following the meeting of the Finance and Resources Committee.

Resources and Productivity Sub-committee – 12 September 2011

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

Treasury Management first quarter 2011/12 update

5. This report presents the Treasury Management activity for the period 1 April to 30 June 2011. The report also provides, at paragraphs 27 and 28 an update with respect to Landsbanki. Members did not identify any points of concern in the report. Members were, however, advised that there will be pressures on the cash flow in the second quarter as the financial consequences of the disturbances in August become apparent. For example, it is expected that there will be an increase in the overtime payments at the end of October and compensation awards under the Riot Damages Act will begin to be paid shortly. The Finance and Resources Committee will be advised of the effects of these pressures through the monthly budget monitoring report and will also be advised of the position regarding the recovery of costs from the Home Office where applicable. The Sub-committee supported the recommendation.

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

Capital Programme –quarterly monitoring report 2010/11 –quarter 1

6. This report provided members with a review of the capital programme as at the end of quarter 1 (June 2011). A summary was included which provided Information on the financial and non-financial impact of significant project slippages and any actions being taken to resolve any identified underlying issues on the following basis:

• reasons for reported variations;
• a statement regarding how underlying issues are expected to be resolved;
• the financial and non-financial impact (including associated risks); and
• information on projects being held in reserve to bring forward should any slippages occur.

7. Members requested that a more detailed review of the programme as it relates to the Directorate of Information be submitted to the next meeting of the MPA IT Panel.

Overtime Costs – quarter 1

8. Members received the quarterly report which provides an analysis of the overtime paid to police officers, police staff and Police Community Support Officers during the quarter from 1 April to 30 June March 2011. It advised that the quarter 1 forecast indicates an overall overspend on overtime of £7.4m against a budget of £128.9m (5.8%). This is in the context of the overtime budget allocation for 2011/12 being currently some £11.5m lower than that applied to 2010/11 and the forecast expenditure on overtime of £136.3m is some £3.6m lower than that incurred during 2010/11 levels.

9. The overspend occurred at the time of a number of high profile events in the first quarter such as the Royal Wedding and the visit to the UK by the US President which have impacted considerably on expenditure to date. As the Royal Wedding took place on a bank holiday, officers were entitled to claim double time and it is estimated to have cost an additional £2.7m in Police Officer overtime, 9.2% of the Police Officer overtime cost in Quarter 1. A further £0.1m of Police Staff overtime was incurred. Discussions are underway with the Home Office around additional funding to cover the Royal Wedding costs. The forecast does not yet reflect the impact of the recent public disorder in London and there is a significant risk that the forecast overspend on officer overtime will increase.

12. The report stressed that the controls which cover the use of overtime for public order events will not be relaxed. Planning will continue to provide as much notice as possible to officers to avoid incurring unnecessary overtime costs but the spontaneous nature of the disturbances in August will undoubtedly have an effect on the use of casual overtime and the additional costs associated with such overtime. This will be reflect in the figures for the second quarter which will be presented to the Sub-committee later in the year.

13. Members expressed an interest in learning more about how the changes in shift patterns in Territorial Policing have impacted on the payment of overtime and will be exploring this further at future meetings.

MPA/MPS Procurement Strategy – action plan

15. An update on the action plan was provided. The action plan is designed to monitor progress against the key actions required to implement the strategy which was approved by the Finance and Resources Committee in June 2009. The report also contained information on an audit of the procurement framework and the improvement work which had been carried out. Advice was given that the Directorate of Audit Risk and Assurance is due to conduct a follow up review in the third quarter of 2011/12 to give assurance on the progress made.

16. Members noted that there continued to be good progress on most elements of the action plan and that steps were being taken to address those areas of current under achievement such as the number of apprenticeship opportunities both internally and within the supply chain.

Data Centre Consolidation and Server Visualisation (exempt)

17. The Sub-committee approved a request to proceed with Tranche 1 of the Data Centre Consolidation Server Virtualisation (DCSV) Programme. It is currently anticipated that approval to proceed with tranche 2 will be sought in the final quarter of the current financial year. In computing terms, virtualisation means reducing the number of physical devices and the current unutilised capacity by taking a ‘virtualised and compressed’ approach as indicated in the supporting diagrams on the following pages. Thus for example, virtualisation can allow for more efficient and effective utilisation of IT infrastructure. The DCSV programme will be taking full advantage of this technology to replace obsolete hardware.

Amendment to framework agreement for the provision of forensic analysis of digital and electronic devices (exempt)

18. This report followed on from one considered by the Sub-committee it December 2010 when it was agreed to enter into a framework agreement for the provision of forensic analysis of digital and electronic devices for a four year period. The Sub-committee has now agreed to make a modification to the agreement by the addition of a further firm following the removal of a firm from the list and the demise of the Forensic Science Service.

Other reports considered

19. The Sub-committee received the quarterly update on the early payment initiatives to small and medium enterprises. This showed that in July 80.12% 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 stated aim is to achieve this by the end of the current financial year. 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

Equality and Diversity 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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