Capital Programme - Quarterly Monitoring Report 2009/10 – Quarter 4

Report: 5
Date: 5 July 2010
By: Director of Resources on behalf of the Commissioner

Summary

This report provides members with a detailed review of the MPS capital programme as at quarter 4 (end of March 2010).

A. Recommendations

That Members

1. Note the quarter 4 (March) monitoring position for the Capital expenditure.
2. Approve the content of this report for submission to the MPA Resources and Productivity Sub-Committee on 5th July 2010.

B. Supporting information

Background

1. MPA Members have requested a detailed quarterly capital monitoring report which provides more comprehensive monitoring information than that provided in Appendix 3 of the combined monthly Revenue and Capital Monitoring Report. This report provides details of the financial and non-financial impact of project slippages and any actions being taken to resolve any identified underlying issues. This report also includes detailed information of any projects being held in reserve to fill slippage gaps and consideration of the overall effect on the funding of the capital programme. A commissioning brief for the information requested was subsequently submitted by the Authority. The report reviews the capital monitoring position as at quarter 4 (March 2010). Appendices 1, 2 and 3 provide the requested information which enables a comprehensive analysis of the Capital Programme to be undertaken by Members. Please see paragraphs 4 to 6 for information explaining the content of Appendices 1, 2 and 3.

2. The commissioning brief requested detailed monitoring information on a project by project basis. However it is not considered appropriate to provide information at that level of detail because there are currently in excess of 900 separate projects in progress. Information is provided in this report at sub-programme level which is more detail than provided in the monthly Revenue and Capital Budget Monitoring Report presented to the Finance and Resources Committee.

3. Under the existing Contract Regulations approval must be given by the MPA before the commencement of any procurement or purchase activity which will cost £5m or more over the life cycle of the project. There are approximately 70 individual projects with a total life cycle budget in excess of £5m within the current 7 year Capital Programme. It is not practical to provide details for all these projects but the top 10 projects by expenditure in 2009/10 are shown separately in Appendix 2.

Appendix 1 - Detailed Capital Programme Monitoring Report.

4. Appendix 1 provides a summary of individual projects or schemes within each Capital Programme. Appendix 1 has been extended to capture the detailed information requested by the MPA, specifically, 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 utilise any slippages that occur.

Appendix 2 - Top 10 Projects Monitoring Analysis

5. Appendix 2 provides similar information to Appendix 1 but specifically for the top 10 individual projects by actual expenditure in 2009/10. The revised 2009/10 budget for these schemes total £65.5m (31%) of the total budget of £214m.

Appendix 3 - Summary Capital Programme Monitoring Report.

6. Appendix 3 is the same appendix that is included in the monthly Revenue and Capital Monitoring Reports submitted to the MPA for monitoring purposes. Appendix 3 shows the overall position in terms of provisional outturn capital expenditure, annual approved and revised budgets, for each element of the Capital Programme. Appendix 3 also provides a breakdown of how the Capital Programme is funded.

Capital Programme Funding.

7. Despite the downturn in the economy adversely affecting the expected level of capital receipts available in 2009/10 to support the Capital Programme, an ambitious level of investment has been achieved. This has proved possible due to the judicious use of (a) unsupported borrowing; (b) capital reserves; (c) revenue underspend from 2008/09; and (d) Service Improvement Programme funds. This financing situation is closely monitored to ensure all funding sources remain available and the Capital Programme continues to be affordable and sustainable in accordance with requirements of the Prudential Code. Capital Receipts for this financial year have already exceeded the level included in the revised annual budget. This combined with the forecast underspend in overall capital expenditure will mean that less funding will be required from Capital Reserves.

C. Race and equality impact

There are none specific to this report.

D. Financial implications

The financial implications are those set out in the appendices to this report.

E. Legal implications

None given.

F. Background papers

• None

G. Contact details

Report authors: Nick Rogers, Director of Finance Services.

For more information contact:

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

Send an e-mail linking to this page

Feedback