Capital programme quarterly monitoring report 2011/12 - quarter 1

Report: 7
Date: 12 September 2011
By: Director of Resources on behalf of the Commissioner

Summary

This report provides Members with a review of the MPS capital programme as at the end of quarter 1 (June 2011) in more detail than that contained in the monthly report to Finance & Resources Committee.

A. Recommendations

That members note the quarter 1 (June 2011) year to date position for the Capital Expenditure Programme 2011/12.

B. Supporting information

Background

1. This is a routine quarterly report which provides details of the financial and non-financial impact of significant project slippages and any actions being taken to resolve any identified underlying issues. It expands on information provided to Finance & Resources Committee in the monthly monitoring report for Revenue and Capital. Appendix 4 of the monthly monitoring report is attached here as Appendix 1.

2. This report reviews the capital year to date position as at the end of Quarter 1 for financial year 2011/12. Appendix 2 provides analysis of the Capital Programme 2011/12. Members have expressed a wish for the content of this report to be wholly publishable therefore, to avoid compromising the commercial confidentiality that a detailed project report would cause, this report is focussed on the changes to project forecasts.

3. Information is provided in this report at programme and major project level based on the revised 2011/12 budget of £227.2m gross of over programming as agreed by Finance & Resources Committee on 21 July 2011.

Appendix 1 - Summary Capital Programme Monitoring Report

4. Appendix 1 is the same appendix that is included in the monthly revenue and capital monitoring reports submitted to the MPA. It shows the overall position in terms of year to date capital expenditure, annual approved and revised programmes, project budgets, project forecast expenditure and forecast variances for each element of the capital programme. It also provides a breakdown of how the capital programme is funded.

5. Year to date expenditure for 2011-12 is £29.5m, representing 15.8% of the revised budget of £186.3m (net of over programming). This compares with 10.9% at the same time last year.

6. The level of capital receipts to be applied to funding capital expenditure in 2010/11 remains at £40m.

Appendix 2 - Detailed Capital Programme Monitoring Report.

7. Appendix 2 provides a summary of individual projects or schemes of work within each provisioning strand of the Capital Programme. It 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 bring forward should any slippages occur.

8. Key issues

• The restructuring within Directorate of Information and the implementation of new ‘Lean’ processes have the potential to disrupt programme delivery but this is being contained by careful reassignment of existing resource.
• A number of new entries to the current year programme are being assessed for priority and impact before being accepted. This should improve the forecast to outturn in Q2
• Over programming is retained as a tool to manage delivery to budget.

Capital Programme Funding

9. The financing situation is monitored throughout the year to ensure the capital programme remains affordable and sustainable in accordance with requirements of the Prudential Code. Appendix 1 shows the funding take up in the year. It is expected that the overall funding will be within the Prudential Indicators Operating Boundary and the Authorisations limits.

C. Other organisational and community implications

Equality and Diversity Impact

1. Equality Impact Assessments are completed on business group activities undertaken where there is deemed to be an impact. The equality and diversity implications are identified in business cases and reports on individual proposals through our normal decision making channels.

Met Forward

2. Met Forward recognises that the MPS has to make challenging financial decisions whilst minimising the impact on front line policing. This report outlines the current financial position against the Capital plan approved by the Authority (Policing London Business Plan, 2011-14).

Financial Implications

3. The financial implications are those set out in the report.

Legal Implications

4. This report provides financial management information relating to the capital programme, which is delegated on a day to day basis to the Director of Resources on behalf of the Commissioner. As this report is for information only, there are no direct legal implications arising.

Environmental Implications

5. There are none specific to this report.

Risk Implications

6. Risk management is integrated into the Service’s budget, business planning and performance management processes. Business Groups and Management Board monitor risks on a regular basis. This report is part of this framework commenting on the risk to delivery of the capital plan for 2010/11.

D. Background papers

None

E. Contact details

Report authors: Anne McMeel, Director of Resources, MPS

For more information contact:

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

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