MPA support organisation budget 2001-02

Report: 4
Date: 25 January 2001
By: Treasurer

Summary

This report presents the proposed budget in 2001/02 for the MPA Support Organisation for approval.

A. Supporting information

1. The proposed budget for the MPA Support Organisation in 2001/02 is £2.46m that represents a continuation of the budget provision made in the current financial year. However, on the basis of experience of this first year of operation and anticipated changes in the new financial year, the breakdown of the £2.46m shows a number of differences as is set out below:

MPA support organisation budget 2001-02

2. The largest element of the budget is Staffing Costs, accounting for some 60 per cent of the Support Organisation budget. The increase in staffing costs reflects the costs of the staffing structure included in Report 3 on this agenda of £1.363m, with the addition of employer's National Insurance at a rate of 8.5 per cent.

3. There is also an increased budgetary provision for Member's Allowances and Expenses. This reflects an anticipated increase in the ceiling for Member's Allowances but is dependent on a decision from the Home Office. The provision made is for an increase in the ceiling for those members eligible to claim attendance allowance from £7,500 to £15,000 and a rise in the allowance for the Chair of the Authority from £11,250 to £22,500. In addition, there is a provision for legitimate and allowed expenses of £6,500.

4. The budget provision for Recruitment has fallen significantly and is based on an estimate provided by the Head of HR. The budget provision for Membership Subscriptions relates to the full year cost to the MPA of membership of the APA, the ALG and the LGA. The MPA has been invited to join the LGA as a corporate member: the current subscription is £11,000.

5. The budget for Consultants in 2001/02 has been reduced from the current financial year. However, it is regarded as important that the Authority retains the flexibility that this budget provides in dealing with specific issues as they arise.

6. The budget provision for Meetings is in respect of meetings held by the Authority and its Committees. The budget provision for Public Relations has been reduced but is sufficient to maintain the key elements required to maintain the Authority's profile. The budget provision for Conferences and Training reflects experience in the current financial year and the anticipated requirement for the forthcoming financial year.

7. The budget provision for Office Supplies, Equipment and Furniture shows a marginal increase on the current year, despite much higher costs in the current financial year of around £150,000. This is because the bulk of the expenditure in the current financial year has been in relation to set-up costs. This is true also of the IS/IT budget, which shows a significant reduction on the current year. There is a marginal increase in the budget provision for Telephony, however, reflecting experience in the current year.

8. The Accommodation budget provision relates to the accommodation occupied in Romney House. The reduction in this budget reflects the lower costs associated with this occupation in comparison with the budget provision made whilst the GL:A was in the process of identifying these costs and reflects current year experience.

9. Finally, the budget provision of £58,000 in respect of the Virdi Inquiry reflects the decision made by this Committee on 23 November 2000 in relation to the Inquiry's costs and funding.

10. Once this breakdown of the Support Organisation budget has been approved, it is proposed that it be allocated to specific cost centres, identifying specific budget management responsibilities. In addition, this budget will be consolidated with the other budgets which fall under the direct responsibility of the MPA, such as Internal Audit.

B. Recommendation

That the Committee approve the proposed break down of the MPA Support organisation budget for 2001/02.

C. Financial implications

The £2.46m budget proposed for the MPA Support Organisation forms part of the overall draft budget that is awaiting final approval.

D. Review arrangements

None.

E. Background papers

The following is a statutory list of background papers (under the Local Government Act 1972 S.100 D) which disclose facts or matters on which the report is based and which have been relied on to a material extent in preparing this report. They are available on request to either the contact officer listed above or to the Clerk to the Police Authority at the address indicated on the agenda.

• Report to Chair's Coordination and Urgency Committee - Financial Status of the Virdi Inquiry - 23 November 2000
• Report to Chair's Coordination and Urgency Committee - MPA Staff Pay, Grading and Terms and Conditions - 25 January 2001

F. Contact details

The author of this report is Colin Balkman, MPA.

For information contact:

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

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