Minutes - draft

These minutes are draft and are to be agreed.

Minutes of the meeting of the Finance and Resources Committee held on 22 September 2011 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Dee Doocey (Chair)
• John Biggs
• Christopher Boothman
• Amanda Sater
• Valerie Shawcross
• Graham Speed

MPA officers

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

MPS officers

• Jane Bond (Director of Property Services)
• Anne McMeel (Director of Resources)
• Nick Rogers (Director of Finance Services)
• Lee Tribe (Director of Procurement Services)
• Alex Walsh (Director HR Professional Services)
• David Wish (Deputy Director of Information). Chris Porter - Head of SERIS and David Wright attended for agenda item 16

28. Apologies for absence

(Agenda item 1)

An apology for absence were submitted on behalf of Reshard Auladin,Faith Boardman and Steve O’Connell.

29. Declarations of interests

(Agenda item 2)

No declarations were made.

30. Minutes of the meeting held on 21 July 2011 (part 1)

(Agenda item 3)

Resolved – That the minutes of the meeting of the Committee held on 21 July 2011 be agreed and signed as a correct record.

Arising - A member said that he could not recall having received the information concerning the premises costs at the Gravesend firearms facility which had been requested at the last meeting.

Actions

1. Information requested at the last meeting to be circulated to members MPA

31. Report of the Sub-committees of the Finance Resources and Productivity Sub-Committee

(Agenda item 4)

A report was submitted which advised members of the business considered by the Finance Resources and Productivity Sub-Committee and the Estate Panel.

Resolved – That the information be noted.

32. Revenue budget monitoring 2011/12 – period 4

(Agenda item 5)

This report showed the revenue and capital position at Period 4 (July 2011). The revenue budget is forecast to overspend by £6.2m (0.2% of budget) before any account is taken of the budget resilience provision or the costs of Operations Kirkin and Withern . The Capital Programme as at the end of Period 4 shows year to date expenditure of £45.6m. This represents 24.5% of the annual programme budget of £186.3m.

In introducing the report the Director of Finance said he would stress that it represented the position prior to the disturbances which had occurred in August.

In reply to a question from the Chair the Director of Resources advised that the full cost of the disturbances was not yet fully known as for example, the investigations were still continuing. An application for maximum cost recovery would be made to the Home Office.

The Treasurer advised that at its meeting on 8 September the Strategic and Operational Policing Committee had agreed a procedure for considering the claims under the Riot (Damages) Act 1886 and this included a member led appeal process. The cut off day for the submission of claims under the Act had just passed and a substantial volume of claims had been received. These were with the Directorate of Legal Services for checking and processing. The MPS were also looking to appoint a loss adjustor. The Treasurer acknowledged that there were indications that there could be demands placed on the cash flow attributable to the disturbances in the coming weeks. The MPA was well placed should it become necessary to borrow to cover peaks in expenditure as there were several possible sources open to it for borrowing monies and it was of course the case that interest rates continued to be at historically low levels. In reply to a question the Treasurer said that it was too soon to say whether the payments would have an impact upon the reserves,

The Director of Resources advised that in some cases the payments would be phased so it may be necessary to make provision for these payments as part of next year’s budget building.

In response to a question from a member the Director of Finance undertook to provide more information on the additional TP development costs (Paragraph 30 refers.)

Resolved – That

1. the year to date and forecast position for revenue and capital budgets be noted;
2. the revised Police Officer target strength for 31 March 2012 of 32,249 to account for the centralisation of training budgets be noted; and
3. approval be given to the budget virement of £1.4m as set out in paragraph B46.

Actions

2. Note to be provided on the additional TP development costs MPS

33. Treasury management -1st quarter 2011/12 update

(Agenda item 6)

This report invited members to review the Treasury Management activity for the period 1 April 2011 to 30 June 2011.

Graham Speed, Vice Chair of the Resources and Productivity Sub-Committee advised that the Sub-Committee considered that the strategy being followed, which had been developed in consultation with Arlingclose, the Authority’s advisers, was satisfactory and had resulted in a higher level of income than the previous strategy under which l funds were only placed with the Debt Management Office.

The Treasurer provided an update with respect to Landsbanki (paragraphs 27 and 28 refers). The Icelandic Supreme High Court had begun to hear the appeal from non priority status investors. The intention was to hear all the appeals and then make a joint announcement concerning the outcome. This was expected to be in late October.

Resolved–That the report and attached appendices which include a statement of assurance from the Treasurer and Director of Finance be noted.

34. Police Property Act Fund

(Agenda item 7)

This report on the Police Property Act Fund (PPAF) gave a review of the financial statements 2010/11, provided the latest position of grants awarded 2011/12 and sought approval for a £25,000 grant award to Ealing Borough.

Resolved – That

1. The report on the 2010/11 annual accounts for the Police Property Act Fund be noted;
2. The current position of grants awarded 2011/12 be noted and
3. approval be given to Ealing Borough making a £25,000 grant award from its allocated funding for 2011/12.

35. Sponsorship received in 2010/11

(Agenda item 8)

This report sets out the the level of sponsorship income received by the MPS during the financial year 2010/11 as well as the current stewardship and financial reporting arrangements
A member requested that more information be supplied on the Vehicles Fraud Unit and the way its activities were now carried out. (Paragraph 7 refers.)

Resolved – That the report be noted.

Actions

3. Note to be provided on the Vehicles Fraud Unit MPS

36. MPS police staff early departures: overview of activity to date

(Agenda item 9)

This report provided an overview of police staff early departure activity to date focusing on an assessment of actual spend against approved spend from the budget pressures reserve.

Resolved – That the early departure activity undertaken across the MPS to date particularly in relation to approved spend and actual spend be noted

37. Construction category update

(Agenda item 10)

This report provided an update to previous reports on the procurement strategy for Construction and Associated Services which were considered in September 2007 and September 2010. It recommended the reinstatement of the threshold for calling off works from the Facilities Management Contracts (FMS) to project value from £50,000 to £150,000. The report also outlined the progress made in the development of a second construction framework, and the considerations for the Construction Sourcing plan.

The Committee was advised that the change to the threshold to £50,000 had been made following a recommendation from Internal Audit. However, it had not been found to make a significant difference in practice and more was now known about this market. It was not thought necessary to continue with this lower level and therefore the Committee was therefore being asked to approve the reinstatement of the £150,000 threshold.

Graham Speed said that in the light of the additional information and assurance which had been given he would support the recommendations.

Resolved – That

1. Approval be given to the re-instatement of the £150,000 minor works threshold, as allowed for within the scope of the Facility Management Contracts entered into with Balfour Beatty Workplace (BBW) and Interserve Facilities Management (IFM);and
2. the following developments against the existing procurement strategies be noted:
   1. the implementation of call-off arrangements for Forward Works;
   2. the extension of the Technical Consultancy Services Agreements as approved by Contracts Board;
   3. continued use of the OGC Full Design Team and Project Management Services Framework; the proposed use of the North London Strategic Alliance (NLSA) Construction related Consultancy Service Framework;
   4. the developments to the second South East and London construction Framework for Major Projects; and
   5. the vision for a longer-term sourcing plan for works and professional services.

38. Framework agreement for the provision of Airwave radio terminals, accessories and managed services

(Agenda item 11)

A report was submitted which described the outcome of the formal competitive tendering exercise for the setting up of a replacement multi-supplier framework agreement for the supply of Airwave radio terminals, accessories and managed services. This new framework will be for a term of four years and with a total contract value of up to £160M. for all forces and organisations and up to £20M for the MPS.

Summing up comments from members on the complexity of the report the Chair said it was important that reports be drafted on the basis that members were not required to have a detailed prior knowledge of the subject under consideration.

A member raised the question of battery life of radios and sought confirmation that in any procurement activity, due consideration be given to battery life especially bearing in mind the longer shifts which some officers were now working. He asked whether the options for extended battery life were being explored.

In reply the Deputy Director of Information said he could provide an assurance that due consideration would be given the ensuring battery life is maximised and extended where the opportunities arise. In discussion it was recognised that users of the equipment also had a responsibility to ensure that equipment was used appropriately and responsibly, including being aware of factors such as battery life.

Resolved – That approval be given to award a Framework Agreement for the supply of Airwave radios (Lot 1), managed services (Lot 2) and accessories (Lot 3). This Framework Agreement will allow contracts to be called off with the following suppliers: -

Abiom Beheer AV Lot 3
Arqiva Ltd Lots 1, 2 and 3
Airwave Solutions Ltd Lot 2
Capita Secure IS Ltd Lot 2
Cassidian Finland OY Lot 1
Cleartone Telecoms Ltd Lot 1
Motorola Solutions Ltd Lots 1, 2 and 3
Peter Jones (ILG) Ltd Lot 3
Savox Communications Ltd Lot 3
Sepura plc Lots 1 and 3
Sonic Communications (Int) Ltd Lot 3
Telent Technology Services Ltd Lot 2
Thales UK Ltd Lot 1

Actions

4. Issue of battery life for radios to be borne in mind in procurement activity . MPS

39. The MPS use of the Sprint II framework following it's mandation by the Home Secretary

(Agenda item 12)

This report provided information on the purchase of new commoditised hardware and software through the Buying Solutions mandated single supplier framework, Sprint II, following its mandation by the Home Secretary. In future, where the MPA/MPS do not have existing contracts in place for commoditised hardware and software, the mandated Sprint II framework will be used.

In reply to questions the Director of Resources said that there were some issues concerning the mandation which had not been fully explored with the Home Office such as how to identify the savings which were being achieved.

Resolved – That it be noted that multiple call-off contracts will be awarded to Specialist Computer Centre (SCC) for the provision of commoditised hardware and software via the Home Office mandated, single supplier framework (Sprint II). Capgemini will continue to act as the MPS front end agent for the eCatalogue servicing Catalogue 1 (standard) and Catalogue 2 (non standard) EBP orders.

40. Estates update paper

(Agenda item 13)

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

The Director of Property Services provided an update with regard to the Safer Neighbourhoods programme. Borough Commanders were now developing business models which would be appropriate to the requirements of each borough. No further bases would be closed without prior approval from the MPA. She could provide an assurance that a borough Commander would speak to his or her MPA link members concerning any bases which had been identified for closure and the Chair of the Finance and Resources Committee would be advised when this has had happened.

The Director of Property Services also provided an update with regard to the Wandsworth custody facility (paragraph 20). It had now been confirmed that there would be a permanent front counter facility

Graham Speed, Chair of the Estate Panel, said there were some points of detail concerning the Wandsworth custody facility he wished to discuss with the Director of Property Services following the meeting.

In reply to a question from a member the Director of Property Services advised that the matter reported in the risks implications section of the report related to a lift inspection in two buildings This has been reported in some detail in previous updates.

The Chair said that the committee reports were public documents and she would repeat the request that reports should not assume a substantial prior knowledge of the subject matter.

Resolved – That the report be noted.

Actions

5. Chair of the Committee to be advised in instances where a MPA link member had been advised where a SN base had been identified for closure , MPS

41. Any other urgent business

(Agenda item 14)

There was none.

42. Exclusion of press and public

(Agenda item 15)

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 4 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

43. Forensic Science Service

(Agenda item 16)

Information relating to the revised operating model was noted.

44. Exempt appendix to capital and revenue budget 2011/12.

(Agenda item 17)

Information noted.

45. Exempt appendices to MPS police staff early departures: overview of activity to date

(Agenda item 18)

Information noted.

46. Exempt appendix to framework agreement for the provision of airwave radio terminals, accessories and managed services

(Agenda item 19)

Information noted.

47. Exempt appendices to Sprint II Framework

(Agenda item 20)

Information noted.

48. Exempt appendices to Estates update

(Agenda item 21)

Oral update provided with respect to Imber Court. Information noted.

49. Minutes of the meeting held on 21 July 2011 (part 2)

(Agenda item 22)

Agreed and signed as a correct record

Send an e-mail linking to this page

Feedback