Contents
Report 4 of the 06 Nov 01 meeting of the Chair's Co-ordination and Urgency Committee and sets out the forecast out-turn position against budget for the MPA for the financial year 2001-02.
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MPA budget monitoring 2002/03
Report: 4
Date: 6 November 2001
By: Treasurer
Summary
This report sets out the forecast out-turn position against budget for the MPA for the financial year 2001-02.
A. Recommendation
- Members note the report; and
- Members note that exceptional expenditure on recruitment of £42,000 is to be charged to the first year set up costs reserve;
B. Supporting information
1. This report sets out budget monitoring information in respect of the MPA, encompassing the support organisation, audit, consultative groups, efficiency and effectiveness consultancy and contingency.
2. The overall end of year position is now a large projected underspending of £4,177,000. However, this reflects the freezing of the MPA contingency in 2001-02 as agreed at the Full Authority meeting of 25 October. Excluding this extraordinary item the overall position is an underspending forecast of £1,000 which compares with the position reported to the Human Resources Committee on 6 September 2001 (HR/01/64) where an underspend of £55,000 was forecast.
3. The position is due in the main to:
- Continuing forecast expenditure on recruitment, particularly in relation to internal audit,
- Ongoing expenditure on training and conferences for Members and officers of the MPA,
- Recruitment within internal audit, the use of some consultancy to meet work plan commitments, and provision for salary increases following their review.
| Annual Budget £'000 |
Mth 6 Actual + Commitment to date £'000 |
Full Yr Forecast £'000 |
Full Yr Variance £'000 |
Full Yr Variance % |
Forecast at mth 4 £'000 |
|
|---|---|---|---|---|---|---|
| Staffing Costs | 1,510 | 774 | 1,506 | -4 | 0 | 1,499 |
| Members Allowances | 194 | 57 | 160 | -34 | -18 | 173 |
| Recruitment | 45 | 87 | 90 | 45 | 101 | 125 |
| Training & Conferences | 26 | 29 | 71 | 45 | 172 | 44 |
| Membership Subscriptions | 75 | 116 | 129 | 54 | 72 | 129 |
| Consultants | 50 | 43 | 65 | 15 | 30 | 50 |
| Meetings | 75 | 29 | 65 | -10 | -13 | 65 |
| Public Relations | 50 | 51 | 66 | 16 | 32 | 66 |
| Office Supplies | 148 | 59 | 113 | -35 | -24 | 132 |
| IS/IT | 100 | 71 | 80 | -20 | -20 | 70 |
| Telephony | 18 | 15 | 21 | 3 | 17 | 21 |
| Accommodation Charge | 204 | 145 | 195 | -9 | -4 | 196 |
| Total MPA Support | 2,495 | 1,476 | 2,562 | 67 | 3 | 2,570 |
| Consultative Groups | 1,215 | 168 | 1,215 | 0 | 0 | 1,215 |
| Efficiency & Effectiveness Review | 1,000 | 49 | 1,000 | 0 | 0 | 1,000 |
| Contingency | 5,076 | 0 | 900 | -4,176 | -82 | 5,076 |
| Internal Audit | 1,395 | 541 | 1,327 | -68 | -5 | 1,265 |
| External Audit Fees | 500 | 141 | 500 | 0 | 0 | 500 |
| Total MPA Budget | 11,681 | 2,375 | 7,504 | -4,177 | -36 | 11,626 |
4. The budget for recruitment did not adequately reflect the high level of expenditure required during the set-up period which has extended well into 2001-02 and accordingly £42,000 has been identified to be charged against the first year set up cost reserve to offset the exceptional expenditure (and is not included in the figure above). Expenditure on recruitment to internal audit positions and to ACPO rank posts within the MPS is charged against this budget also.
5. Expenditure on training and conferences is committed to ensure that the MPA is fully functional and self-supporting. The end of year forecast includes the cost of diversity and performance management training.
6. An overspend of £54,000 is predicted on the subscriptions budget due to insufficient budget provision. This covers subscriptions to the Association of Police Authorities, Local Government Association and Association of London Government. Members are asked in a separate paper on this agenda on the MPA budget 2002-03 to consider increasing this budget in 2002-03 by £54,000.
7. The forecast underspend against the internal audit budget has reduced significantly due to the recruitment of trainee auditors and the expected use of consultancy services to fulfil internal audit commitments.
8. The formal transfer of budget from the MPA contingency to the MPS is yet to be made, however an allocation of £900,000 in 2001-02 has been agreed (FPBV/01/48) to fund the Finance Department restructuring. At the Full Authority meeting of 25 October (MPA/01/95) it was agreed that the remaining MPA contingency would be frozen to provide cover against the security expenditure incurred following the events of 11 September 2001.
9. Subject to the decision of Human Resources Committee on 1 November, provision has been made in the internal audit salaries forecast out-turn for the part year costs, in 2001-02, of the pay assimilation arrangements for internal audit staff.
C. Financial implications
This report has no direct financial implications. The monitoring process will be used to inform decisions about the allocation of budget in future years.
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
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