Capital programme 2011/12 quarterly monitoring report - quarter 2

Report: 9
Date: 1 December 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 2 (September 2011) in more detail than that contained in the monthly report to Finance & Resources Committee.

A. Recommendations

That members Note the quarter 2 (September 2011) year to date position for the Capital Expenditure Programme 2011/12.

B. Supporting information

Background

1. This is the quarterly report which provides details of the financial and non-financial progress of capital projects and any actions being taken to resolve any identified underlying issues. It expands on information provided to the Finance and 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 2 for financial year 2011/12 with the programme and projects set in the context of the capital programme up to 2014/15 and, in some instances, longer periods where projects or programmes have forecast covering up to 7 years.

3. Information is provided in this report at programme and major project level i.e. projects with an estimated whole life capital cost of £1m or more. Comments are set in the context of the in year 2011/12 performance but with the projects whole life view being considered.

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 has been updated to show the revised budget for 2011/12 as at Quarter 2. It shows the overall position in terms of (i) year to date capital expenditure - actuals, (ii) approved capital programmes, (iii) project budgets, (iv) project forecast expenditure and (v) 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 £71.9m, representing 38.4% of the revised budget of £187.0m (net of over programming). /p>

66. The level of capital receipts to be applied to funding capital expenditure in 2011/12 remains at £40m.

Appendix 2 - Investment Management view of Capital Programme

7. This is a summary of the capital programme by delivery strands within the provisioning departments. The programme budgets, as shown in the first column of the appendix, are the controlling values for capital expenditure, as approved in the second quarter revision of the capital programme. The project budget values shown are the sum of individual approvals. The monthly report to Finance & Resources Committee focuses on the variance between this level of budget detail and is not repeated here. This report is focused on programme delivery which is the subject of Appendix 3.

2012/13 Programme delivery:

DoI Programme

8. The DoI programme contains significant enhancements and replacement of the MPS IT infrastructure. The significant projects and programmes underway are:

9. Real Time Communications which continues the provision of critical upgrades, replacements and enhancements to the MPS’ telephony system.
Corporate Print Management Solution which provides printing facilities in a more efficient manner and significantly reduce costs. It assists in changing the way people deal with their printing by changing processes, policy and behaviours.

Language Programme which delivers facilities that enable interpreters to deliver a virtual service across the MPS where ever it is needed, significantly reducing costs incurred due to inefficient processes.

Data Centre Consolidation & Server Virtualisation phase 1 provides a small number of purpose-designed data centres to house all MPS computing and communications facilities, with the exception of those with a specific security requirement. This is delivering a more easily managed, efficient and resilient environment for business continuity yielding a revenue reduction in 2012/13. Phase 2 will be scoped during this year aiming at further reductions in revenue.

Crime Reporting Information System (CRIS) Infrastructure Refresh continues the replacement of various hardware and software which is either end of life or out of support. This is a phased delivery over three years to cover the scope.

Asset Tracking for Logistical Services is progressing with Phase 1a (Uniform Service) to go-live in October, Phases 1b and 1c to go-live in March-April 2012. The Phase 2 business case is complete and the project team is working with operational business groups pre-implementation.

Identity and Access Management. This meets requirements specified by the IMPACT Programme, Olympics Security Programme and the need to replace 85% of the MPS’ physical security that has become obsolete.

OTSU Equipment - Search enables the Directorate of Information (DoI) to provide specialist infrastructure such as building security and access, CCTV, swipe card access, door locks, and Automatic Number Plate Recognition (ANPR) support. Also used to provide specific overt and covert operational support.

Events Management Futures is implementing an SAP based replacement for MetOps to enable the resources planning and management of significant events in the capital, such as Olympics and the Notting Hill carnival.

Mobile Data Terminals Replacement delivers a more resilient and supportable solution. The scope is to provide like-for-like functionality, with a small number of additions, which will have a minimum expected asset life of 5 years

Olympics ANPR - additional equipment necessary as part of Olympics deployment.

PSD Programme

10. The 2011/12 Capital Programme supports a number of change programmes including TP Development; Corporate Real Estate, Delivery of Property Services and Business Group realignment programmes. Schemes include:-

PSD support for TP Development:

11. The Custody Centre programme (incl. combined centres): Works have commenced at Croydon and Wandsworth. Consent to proceed with the detailed design stage for Wood Green; Brixton, Colindale, Kingston and Walworth Custody Extension’s were approved at the MPA Finance Committee on 23rd June.

PSD: Corporate Real Estate/Delivery of Property Services Realignment Programme:

12. Continuing refurbishment of Jubilee House & proposal for the Hendon Programme
Capitalised Minor FM Works: Works are progressing with this programme that ensures the continuing maintenance and operation of the Estate to ensure building compliance.br>WWithin the modernisation of the Central Estate, Empress State Building - a number of floors have now been refurbished and plans are well advanced to deliver the external security upgrade by December 2011. New Scotland Yard - works planned to be delivered during 2011/12 include 18th & 19th floors refurbishment for SO, lift refurbishments, additional standby generators and ups, C&C Chiller refurbishment & R22 replacement to air conditioning system and roofing works.

PSD: Resilience Works

13. Cobalt Square - external security upgrade (reduced scope) - Security Gates was completed in July 2011. Hendon & Bow TER Upgrades are due to commence on site in July 2011 with completion in October 2011.

PSD: Safer Neighbourhoods

14. The Safer Neighbourhoods programme has been paused, pending the outcome of the TP Public Access and Safer Neighbourhoods Review. The revised total number of projects to be delivered under SN2 is 77:

• 75 projects have been completed.
• 1 project has commenced on site as part of the Sovereign Gate, Richmond project - due for completion December 2011.
• 1 project, Holloway Fire Station will be delivered by the London Fire Brigade(LFB). LFB pre-start meeting was held on 14th September 2011. Sectional completion to be confirmed for January 2012 to allow MPS fit out works to commence. LFB building works will continue until May 2012.

Transport Services Programme

15. On track to renew this years volume of 715 cars, 156 motorcycles and 250 vans for the main fleet.

Appendix 3 - Detailed Capital Programme Monitoring Report.

16. Appendix 3 provides the financial performance detail within each provisioning strand of the Capital Programme. It has been extended to capture the life cycle of each project from a 2010 starting position to the project completions. Variances are beginning to focus on whole life performance to budget values instead of the in year and re-phasing between years.

17. Appendix 4 is Exempt from publication and contains individual project financial data for major projects underway. It excludes projects currently in feasibility stage

Capital Programme Funding.

18. 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 implicationsh2>

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 2011/12.

Appendices

1. 2011/12 Capital Performance as at 30th September
2. 2011/12 to 2014/15 Capital Programme overview by Investment Management category.
3. Provisioning Department programme summary
4. EXEMPT from Publication: Major project detail

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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