MPA budget 2003-04 and projected outturn 2002-03

Report: 5
Date: 4 April 2003
By: Clerk and Treasurer

Summary

The 2003-04 budget for the MPA is set out, together with the projected outturn position against budget for 2002-03.

A. Recommendations

That the Committee

1. Notes the report;
2. Agrees the carry forward of up to £20,000 from the underspent training budget (paragraph 5) and any unspent budget from the Efficiency and Effectiveness funding (paragraph 6); and
3. Agrees the use of the contingency as set out in paragraphs 11 and 12.

B. Supporting information

1. This report sets out the forecast position against budget for 2002-03 and details of the agreed budget for 2003-04 for the MPA, encompassing the support organisation, audit, consultative groups, efficiency and effectiveness, and the MPA contingency.

Developments during 2002-03

2. The approved 2002-03 budget has decreased from £21.294 million to the revised figure of £11.620 million, as shown below:

Forecast outturn 2002-03

3. The forecast end of year position is a projected underspending of £158,000 based on actual expenditure to the end of February (see Appendix 1). The expenditure forecast assumes that the MPA contingency (£3.6 million) is fully committed at the year-end; any unused budget would form the basis of a contribution to the Authority’s reserves.

4. The underspend on the secretariat staffing budget is due to posts being vacant during the year. In internal audit part of the underspend on the staffing budget is used to fund the use of contract auditors to support the internal audit work programme.

5. There is a projected underspend of £20,000 on the training budget –committee agreement is sought to carry forward this underspend to fund follow-up to the diversity training which the secretariat had in 2001-02.

6. It is anticipated that the Efficiency and Effectiveness budget will be underspent by approximately £42,000. The programme this year is the second of three annual tranches of £1 million to support this work. It is proposed that the anticipated underspending is carried forward for use in 2003-04.

Budget 2003-04

7. The detail of the agreed £9.3 million budget, at November 2002 prices, for 2003-04 is set out at Appendix 2 and summarised below:

Agreed Growth 2003-04

8. The 2003-04 budget incorporates the areas of growth agreed during the budget process:

Staffing – funding for the following posts was agreed:

Recruitment - £100k one-off provision in 2003-04 for independent member recruitment.

Consultation initiatives – a work programme requiring funding of £197k was agreed at the consultation committee (C/02/08), and an additional £265k for customer surveys. The customer surveys initiative was put forward by the MPS but committee decided (MPA/02/82) that this area of expenditure should be overseen by the MPA, and it is therefore included here.

Running costs – £75k was agreed to cover the ongoing costs of cleaning, porterage, security services, etc. (CUC/02/05).

Community & Police Consultative Groups – an early allocation from the inflation pot to cover pay awards has been agreed in order to finalise the distribution to individual groups before the start of the financial year.

Equalities Initiatives

9. A transfer of £250k from the MPS in respect of diversity initiatives has been agreed – this funding covers administrative support for the equalities / diversity team, earmarked funding for public relations and sponsorship and funding to support the work programme agreed by EO&DB (EODB/02/02). This transfer is reflected in the summary budget.

Use of MPA Contingency

10. When the government grant entitlement was clarified, the total additional grant funding was in excess of the balanced budget provision– it was agreed that the balance, £253,000, would be held as an MPA contingency.

11. There are a number of areas where responsibility has transferred from the MPS to the MPA. The budget movements that would be required to reflect this transfer of responsibility are as follows:

Rather than engaging in a complex transfer arrangement with the MPS it is proposed to apply the MPA contingency in the sum of £208k.

12. The complexity and size of the MPA’s IT/IS infrastructure now, since relocation, including Internal Audit, has necessitated a review of the IT support to the organisation. It is proposed that an IT Administrator be approved to support the existing IT Officer. The likely costs can be contained within the existing contingency sum.

Budget analysis

13. Attached at Appendix 3 is a reworked analysis of the MPA budget, focussing on policy areas. The analysis shows the budget for each work / committee area and 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). The work areas where there is significant growth are the Clerk’s support, equalities and consultation.

14. A reduction in budget under this analysis may not mean resources have been directed away from an area of work, it is simply that the allocation of overheads has reduced due to the overall increase in budgeted posts.

C. Equality and diversity implications

1. Significant additional funding has been agreed for the equalities team to support the work programme as agreed by EODB (26-09-02). The work programme aims to ensure the MPA meets its duties and aims relating to equal opportunities. The programme enables the Authority to better engage with the MPA’s equality target groups, improve its own and the MPS’ diversity performance, address key issues of community concern and develop the appropriate structures and processes to fulfil its equal opportunities policy.

D. Financial implications

1. As set out in the paragraphs above.

E. Background papers

Committee reports as referenced in the report

F. Contact details

Report author: Ken Hunt, Deputy Treasurer, MPA.

For more information contact:

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

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