Draft MPA budget 2003/04

Report: 6
Date: 4 October 2002
By: Clerk and Treasurer

Summary

This report sets out the proposed MPA budget for 2003/04, together with proposed growth bids. The forecast out-turn for the financial year 2002/03 is also reported.

A. Recommendations

That Members

1. endorse or amend the draft MPA budget 2003/04 before referring it to the Finance Committee; 
2. note the forecast outturn for 2002/03; and 
3. endorse the approach taken on security matters in paragraph 12. 

B. Supporting information

1. This report sets out budget monitoring information for 2002/03 and detailed budget proposals for 2003/04 in respect of the MPA, encompassing the support organisation, audit, consultative groups, efficiency and effectiveness programme, consultancy and contingency. The report outlines 

2002/03

Developments during 2002/03

2. The approved 2002/03 budget has increased from £21.294 million to the revised figure of £21.574 million as shown below:

Forecast outturn

3. The forecast end of year position is a projected underspending of £10.094 million, based on actual expenditure to the end of August (see Appendix 1). However, this reflects the temporary £10 million holdback from delegation to the MPS held within the MPA budget. Finance Committee will be reviewing this position in the light of six months expenditure in the October budget monitoring report. This budget may then be released to the MPS. The expenditure forecast also assumes that the MPA contingency (£3.630 million) is fully committed at the year end; any unused budget would form the basis of a contribution to the Authority’s reserves. If we exclude these extraordinary items the position for the MPA is a forecast underspending of £94,000 mainly the result of staffing vacancies held during the year. The underspending against staffing for Internal Audit reflects the vacant posts which still exist – this underspend is used to fund the use of external consultants to assist in fulfilling the 2002/03 internal audit programme.

In-year equality and consultation transfer of £280,000 from the MPS

4. The Secretariat budget for staffing costs has been adjusted to reflect the transfer of £136,000, in 2002/03 only, from the MPS to the MPA for two policy officers, two community consultation co-ordinators and administrative support in the consultation team. The cost of these posts is included within the forecast to the year-end. In addition £144,000 has been transferred from the MPS to support activities around equality and consultation. The total transfer was thus £280,000. 

Additional transferred responsibilities

5. There are areas where responsibility has transferred from the MPS to the Authority but the need to transfer appropriate budget was not recognised at the time the Authority was set up. The MPS has agreed in principle that transfer of budget is the correct approach, but final decisions and agreement has not yet been reached. A transfer of funding for securing legal advice from consultants in relation to the MPA’s responsibility for ACPO conduct is being sought from the MPS. This would be a permanent transfer, both in the current and future years. A corresponding reduction would be made in MPS budgets; no transfer has taken place in 2002/03.

6. A further area is recruitment to ACPO posts and Police Discipline Appeal Tribunals. Again it is appropriate to seek to transfer budgets from the MPS. No transfer has yet taken place in 2002/03.

2003/04

Budget build

7. The build up of the proposed budget for 2003/04 is set out in Appendix 2. The 2002/03 budget of £21.574 million (shown in paragraph 3 above) has been adjusted for the one-off in year transfer of £0.280 million for equality/consultation. This gives a starting position of £21.294 million for the 2003/04 budget build. The proposed 2003/04 budget of £9.144 million incorporates all anticipated transfers of budgets and includes committed growth items and those new initiatives that are subject to Member approval. It also removes the MPA Holdback of £10 million and MPA contingency sum of £3.630 million (see paragraph 3 above).

Transfers from the MPS in 2003/04

8. Column 2 of Appendix 2 sets out the budget movements required to reflect the transfer of responsibility (referred to in paragraph 5 above) for the following:

• £40,000 for ACPO recruitment
• £100,000 for legal consultants re ACPO conduct, including contingency
• £68,000 for Police Discipline Appeal Tribunals 

MPS budgets would have to reduce following the transfer of responsibility and while it is felt appropriate to include these sums in the MPA budget build they are subject to agreement with the MPS. In addition a sum of £125,000 for MPS occupation of the third floor at 10, Dean Farrar Street will be transferred to the Authority’s budget (CUC/02/19 refers).

Committed growth items

9. The committed growth items of £0.314 million (column 4 Appendix 2) reflect:

• a policy development officer to support equalities and diversity work (£37,000)
• a policy development officer for consultation (£37,000)
• two Community Consultation Co-ordinators (£65,000)
• additional running costs for Dean Farrar Street (£75,000 CUC/02/19) 
• a contingency sum for independent member recruitment (£100,000) that will need to take place during 2003/04 only.

For ease of reference the growth bids supported by EO&DB at its meeting on 26 September and by Consultation Committee at its meeting on 23 September are reproduced at Appendix 4.

New initiatives as yet uncommitted

10. Uncommitted new initiatives (column 5 Appendix 2) are made up of the following:

1. two additional uncommitted Community Consultation Co-ordinator posts (£65,000) (supported at the Consultation Committee 23 September 2002)
2. funding for consultation activities (£197,000) (supported at the Consultation Committee 23 September 2002)
3. Funding for diversity initiatives (£230,000), supported at EO&DB (26 September 2002).
4. administrative support for the External Diversity and Consultation team (£22,000) supported by EO&DB (26 September 2002)
5. extra funding for the Deputy Clerk’s post (£31,000) and new funding for a new policy officer post in the Consultation Team (£50,000) (supported by the Full Authority on 26 September 2002)
6. six support officers for Crime and Disorder Reduction Partnerships.

11. Members are asked to consider whether they wish to endorse or amend the new initiatives and budget prior to budget consideration by the Finance Committee.

12. It has been assumed that the existing arrangements for security at 10, Dean Farrar Street will continue. Details of the alternative option (which would cost an additional £120,000) are outlined in the attached exempt report.

13. There are two areas where the MPA will have new responsibilities in 2003/04 – Crime and Disorder Reduction Partnerships and Health and Safety. Discussions will need to take place with the MPS on possible transfers of resources, including staff, to the Authority to enable it properly to fulfil its new Health and Safety responsibilities. 

14. The Planning, Performance and Review Committee is currently undertaking a scrutiny of Crime and Disorder Reduction Partnerships and will make recommendations about the way in which the Authority can most effectively play its new statutory role as a full partner in the 32 partnerships. A paper is due to go to the full Authority in December but it is necessary now to include in the budget funding for this new duty. It is proposed to allow for the appointment of six support officers at a cost of £238,000 to work with members on the Crime and Disorder Reduction Partnerships (included in column 5, Appendix 2).

Informal meeting of Coordination and Policing Committee

15. Members will be able to discuss the MPA initiatives in conjunction with the MPS proposals in the informal meeting of this Committee which follows.

Improved budget analysis

16. A different analysis of the budget is being developed to give an indication of the MPA resources applied to work/committee areas. In particular this gives an indication of the budgeted expenditure which can be attributed to activity connected to the Consultation Committee, EO&D Board and the Human Resources Committee and also to gauge and understand the other work areas. This is the first stage in improving and refining information, but work will continue to relate the resources directly to the Authority’s strategic objectives. A reworked analysis of the draft 2003/04 budget is attached at Appendix 3 for information. The budget for each work/committee area is based on salary costs, any other direct service budgets (e.g. budgets for consultation activities) and an allocation of overheads (e.g. office supplies, accommodation costs).

C. Equality and diversity implications

There have been a number of new expenditure proposals for the current year and 2003/04 for equality and diversity work areas. These new areas of work should enable the Authority to provide an improved service to the residents of London and to the Authority’s workforce.

D. Financial implications

The financial implications are highlighted in the body of the report.

E. Background papers

Existing Committee reports referred to above.

F. Contact details

Report author: Ken Hunt, Deputy Treasurer.

For more information contact:

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

Appendix 3: Objective breakdown of draft MPA budget 2003/04 (including growth items)

Send an e-mail linking to this page

Feedback