MPA budget 2006-07 and provisional outturn 2005-06

Report: 7
Date: 9 June 2006
By: Chief Executive and Clerk and Treasurer

Summary

The 2006-07 budget for the MPA is set out, together with the provisional outturn position against budget for 2005-06.

A. Recommendations

That Members note the report and agree to a transfer of the underspend of £325,700 to the MPA reserve.

B. Supporting information

1. This report sets out the provisional position against budget for 2005-06 and details of the agreed budget for 2006-07 for the MPA, encompassing the support organisation, audit and consultative groups, including independent custody visitors.

Developments during 2005-06

2. The approved 2005-06 budget has increased from £9.913 million to the revised figure of £10.150 million, as shown below:

Forecast outturn 2005-06

3. The provisional end of year position represents an underspend of £325.7m (before a transfer to reserves) on the revised MPA operational budget of £10.150m.

4. The main variances from budget relates to staff costs, legal expenses; consultative group expenses; community engagement expenses accommodation costs and income. Further details of these are provided below. A detailed analysis of this is attached at Appendix 1.

• Staff Cost. The overspend of £77K was largely due to the budget allocation for pay awards being lower than anticipated and additional costs of the incremental scheme not factored into the original calculation.
• Pension. As pensions spend is a percentage of basic salary the increased costs of staffing have seen a corresponding increase in the level of the employer’s pension contributions which resulted in an overspend of £74k.
• Legal expenses. It is difficult to anticipate total expenditure associated with this budget because of the unpredictable nature of related expenses. This budget absorbs all legal fees for work undertaken for or on behalf the MPA. The budget was overspent by £76K.
• Consultative Group expenses. The overspend of £63k was due to the additional resources required to implement the reform programme for the Independent Custody Visiting Scheme.
• Accommodation. A saving of £111k was realised by the MPA due to costs of moving to the third floor being less than originally estimated.
• Income. There was an unanticipated income of £338K within Internal Audit in respect of work done on fraudulent claims from interpreters.
• Community engagement expenses. The underspend of £104K was due to a decrease in the level of research and evaluation work completed within the year. In addition, initiatives were deferred to cover the additional expenses incurred in the reform of the Independent Custody Visiting Scheme.

Budget 2006-07

5. Full Authority agreed a budget of £10.232m on 30 March 2006. This incorporated a growth item for accommodation of £0.125m agreed as part of the medium term financial plan. Attached at Appendix 2 is the current budget, this will be subject to review as part of the improvement plan and a revised budget in line with the new organisational structure will be bought back to Co-ordination and Policing Committee for approval.

C. Race and equality impact

6. Funding within the base budget supports the work of the Race & Diversity Unit. The unit aims to ensure the MPA meets its duties and aims relating to equal opportunities; enabling 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

As set out in the paragraphs above.

E. Background papers

• Committee reports as referenced in the report

F. Contact details

Report author: Joan Duke & Annabel Adams, MPA

For more information contact:

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

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