MPA budget 2002/03

Report: 3
Date: 6 November 2001
By: Clerk and the Treasurer

Summary

This report sets out the proposed 2002-03 budget for the MPA.

A. Recommendation

1. Members agree the transfer of £54,000 from the contingency to fund the subscriptions budget;
2. Members note the incorporation of the growth items in paragraph 12;
3. Members note the options the Authority may wish to take in regard to the use of the MPA contingency for development bids, other expenditure proposals or to assist in overall budget management;
4. Members agree the transfer of budget for Internal Audit accommodation and location allowance, and administrative support for Consultative Groups; and
5. Members agree to increase the MPS Accommodation budget by £180,000 in 2002-03 and a full year (paragraph 7), to be financed from the MPA contingency.

B. Supporting information

1. This report sets out the budget in respect of the MPA. It includes the support organisation, audit, consultative groups, efficiency and effectiveness consultancy and contingency.

2. The original 2001-02 budget at November 2000 prices totalled £11.681 million.

Budget Transfers

3. Discussions have been taking place between the MPA consultation unit and the MPS finance department on taking over existing work on administrative duties performed by the MPS finance department. Costings from the MPS indicate that budget provision of £16,000 has previously been available for this work, although with the current level of vacancies the work is being carried out with significantly lower resources. In order to regularise the situation it is proposed that 0.5 FTE equivalent administrative staff be employed by the MPA at a cost of £16,000 in 2002-03 and a full year (£7,000 in 2001-02) and approval is sought to transfer this budget sum from the MPS finance department to the MPA consultation budget.

4. It is also proposed that £36,000 be transferred from MPS centrally held funds for civil staff pay provision to cover the cost of the Internal Audit location allowance.

5. A formal transfer of £1,562,000 in 2002-03 (£900,000 in 2001-02) from the MPA contingency to the MPS has been agreed (FPBV/01/48) to fund the MPS Finance Department restructuring.

Unavoidable Expenditure

6. Provision for new MPA accommodation has been made in 2002-03 provisionally in the sum of £884,000, a net increase of £500,000. This is an indicative sum and firm details of the negotiation on lease rental, service charges and any additional on-going revenue costs have still to be provided. Negotiations have commenced with the agents at 10 Dean Farrar Street and authority has been delegated to this Committee to decide on appropriate action relating to 'heads of agreement' on the lease. One off costs for office furniture and equipment and any accommodation works, refurbishment, IT works, cabling, etc. are not yet known but would be a call on the first year set up costs reserve or, if this is expended, the MPA contingency in 2002-03.

7. The Director of Property Services has advised that there is a system of 'soft charging' in place for users of MPS accommodation. When Internal Audit vacate Jubilee House it is likely the space will be let for other MPS uses. In the short term it will be difficult to make beneficial accommodation changes which would free up the space being vacated. It will therefore be necessary to seek an additional budget of £180,000 from 2002-03 when Internal Audit will no longer be reimbursing MPS accommodation costs, as their budget will be used towards the cost of the new MPA accommodation. It is proposed that this sum be met from a transfer from the MPA contingency in 2002-03.

8. Provision has been made for the full year cost of increased salary levels for internal audit staff. This is estimated at £97,000 and has been agreed as a budget commitment at the full Authority meeting on 25 October (MPA/01/84).

9. The subscriptions budget for 2001-02 was provided at an insufficient level to meet the cost of the arrangements which had been agreed by the Authority, resulting in a shortfall of £54,000 as follows:

This should be rectified for 2002-03 and future years by a budget variation of £54,000. Otherwise the Authority's membership of representative bodies would have to be severely curtailed. This budget will be adjusted against the balance of the MPA contingency.

Efficiency Savings

10. The MPA agreed to find a share of the initial 0.5% efficiency savings identified in the medium term financial forecast. This amounted to £38,000 and has been provisionally deducted from the MPA contingency.

Development Bids

11. The full Authority at its meeting of 25 October decided that further expenditure proposals (other than those identified as unavoidable) as recommended by the Finance, Planning and Best Value Committee on 16 October 2001, totalling (for the MPA related items) £705,000, could only be included if further savings could be identified across the whole MPA/MPS budget. These are identified in the schedules at Appendix 1.

12. The Authority will need to consider whether the MPA contingency is retained or whether it should contribute to the savings exercise currently being undertaken to balance the overall budget.

13. The MPA contingency was created to facilitate MPA policy initiatives. The Authority could decide that some or all of the development bids identified in this report be met from the contingency. Alternatively the development bids could be left to be prioritised against other expenditure proposals thus making available the total balance on the contingency to support the overall budget.

14. The 2002-03 budget is thus made up as follows (more detailed analysis at Appendix 2):

Subject to Committee decision

C. Financial implications

1. None other than contained in the report above. The Consultative Groups' budget set at £1.215m has still to be considered by the Consultation, Diversity and Outreach Committee and could be subject to the views of that Committee.

2. At present Internal Audit IT revenue costs are met from within the MPS' global budget provision. Work is underway to identify appropriate budget provision which will need to be transferred from the MPS to the MPA to provide proper budgetary provision to the correct budgetholder. It is possible that this transfer could be of the order of £40,000 in a full year.

D. Background papers

Existing Committee reports referred to above.

E. Contact details

Report author: Ken Hunt, Deputy Treasurer.

For information contact:

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

Appendix 1: Committed/new growth proposal 2002-03 for business group: Metropolitan Police Authority

Equalities initiatives

Description

• Implementation of recommendations arising from GLA Best Value Review of Equalities – development of detailed MPA and MPS implementation action plans for implementing equality strategy - £46,000
• Implementation of recommendation 63 of Stephen Lawrence Inquiry Report requiring Police Authorities to publicise information to the public on their rights when stopped and searched by police – review of publicity strategy, distribution of information cards - £6,000
• Continued public consultation on recommendation 61 of Stephen Lawrence Inquiry Report on whether the police should be required to give a record to an individual when they are stopped – completion and publication of consultation report, circulation to key groups, dissemination meetings to discuss the report's process and findings - £10,000
• Development of Race Equality Action Plan with performance indicators to meet statutory requirements of the Race Relations (Amendment) Act - £6,000
• Review of cost and service impact of the MPS Community Relations training, in consultation with the Commission for Racial Equality, to ensure continued efficiency and effectiveness in the programme – development of review report and implementation of report outcomes - £17,000
• Co-ordination of Pan-London approaches to addressing the impact of school exclusion on young black children and youths in street crime, in consultation with key stakeholders – development of draft strategy - £2,000
• Co-ordination of Pan-London protocols that will influence the way race and other hare crimes are dealt with, in consultation with key stakeholders, to ensure a greater level of co-operation between agencies – co-ordinate three seminars to launch the developments of the working group - £15,000
• Disability Awareness Training – to provide customer awareness training for all MPA staff particularly in relation to colleagues, customers and others who have a disability - £30,000.

How does this contribute to the delivery of the Mayor's priorities?

Contributes to the GLA's equality agenda.

Is this growth committed?

No

Indicate which of the growth criteria has been met

It assists in the implementation of general mayoral policies or priorities yes
It assists in the implementation of any mayoral strategy yes
It ensures that statutory obligations are fulfilled no
Value for money and enhanced performance can be demonstrated no
Expenditure is fully funded from government or other specific grants no
Expenditure is part of an agreed programme celebrating the Queen's Golden Jubilee no.

Consequence of not approving bid

MPA may not provide the level of support and awareness commensurate with its statutory responsibility by virtue of Section 404 of the GLA Act that requires that in exercising its functions the MPA shall have regard to the need to promote equality of opportunity for all persons irrespective of their race, sex, disability, age, sexual orientation or religion.

Consultation initiatives

Description

• Consultation Advisers – establishment of two posts to undertake functions within the Consultation & External Diversity unit - £70,000
• Community Consultation Co-ordinators – establishment of 6 posts for a pilot period - £192,000
• E-consultation (MPA and MPS) – further development of e-consultation including, for example, links to key sites such as those that attract wide usage from young people - £30,000
• Enhancement to the Public Attitude Survey (PIB) – to ensure wider utilisation of results by the MPA and MPS - £10,000
• MPA Citizens' Panel – to be consulted as events and issues arise on a regular basis as well as on statutory responsibilities such as the annual policing priorities. Such a Panel would include the youths and 'hard to reach/hear' groups - £180,000
• Consultation contingency fund to support ad-hoc Ministerial priorities - £25,000.

How does this contribute to the delivery of the Mayor's priorities?

Fits into Mayor's commitment to engage and listen to Londoners and his priority to lead London's equality agenda.

Is this growth committed?

No

Indicate which of the growth criteria has been met

It assists in the implementation of general mayoral policies or priorities yes
It assists in the implementation of any mayoral strategy yes
It ensures that statutory obligations are fulfilled yes
Value for money and enhanced performance can be demonstrated no
Expenditure is fully funded from government or other specific grants no
Expenditure is part of an agreed programme celebrating the Queen's Golden Jubilee no.

Performance improvement to be delivered by growth (please be specific)

MPA/MPS Best Value Review of Consultation (2000) identified that current consultation in the MPS is largely ineffective.

Consequence of not approving bid

The MPA will not be able to maintain the level of consultation work currently undertaken or fulfil its statutory duty to consult.

Implementation of policy initiatives

Description

• Assist, enable and monitor the performance of the MPS in the implementation of its Domestic Violence Strategy - £2,000
• MPA Performance Scrutiny Programme – carry out a programme into the performance of the MPS in three distinct areas each year - £26,000
• Health & Safety / Occupational Health provision - as an employer the MPA has a number of responsibilities under health and safety legislation - £10,000
• IT training – CISCO certification and Information Security Management - £5,000
• Human Resources scrutiny process – to provide additional resources for member involvement in a range of HR related scrutinies - £15,000
• Review of MPS processes and outcomes for Deaths in Custody in consultation with key agencies and develop guidelines for the more efficient management of such tragedies in ways that promote trust and confidence in the police service - £8,000.

Is this growth committed?

No

Indicate which of the growth criteria has been met

It assists in the implementation of general mayoral policies or priorities no
It assists in the implementation of any mayoral strategy yes
It ensures that statutory obligations are fulfilled yes
Value for money and enhanced performance can be demonstrated yes
Expenditure is fully funded from government or other specific grants no
Expenditure is part of an agreed programme celebrating the Queen's Golden Jubilee no.

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