Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 19 September 2000 at Romney House, Westminster, London.

Present

Members

• Graham Tope (Chair)
• Reshard Auladin (Deputy Chair)
• Nicholas Long (Deputy Chair)
• John Biggs
• Cindy Butts
• Roger Evans
• Cecile Lothian
• Sir John Quinton
• Rachel Whittaker

MPA staff:

• Peter Edwards (Clerk)
• Peter Martin (Treasurer)

MPS staff:

• Barbara Riddell
• Keith Luck
• Ailsa Beaton
• Diana Marchant
• Jenny Deere

Also present 10 members of the press/media and public.

Part 1

15. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Richard Sumray

16. Minutes - 20 July 2000

(Agenda item 2)

Resolved:
that the minutes of the meeting held on 20 July 2000 be agreed and signed as a correct record.

17. MPA budget: period 5 monitoring report

(Agenda item 3)

Members considered a report which included a series of tables on the full year forecast of outturn by expense type, a report on actual MPA/MPS expenditure for the first five months of the financial year and budget and outturn for the same period broken down by organizational location. It was emphasized that the forecasts were subject to a considerable degree of uncertainty.

The Treasurer introduced this report and said that Home Office clarification was awaited on the proposals for specific funding for the street crime initiative and the amount of financing from the CFF also remained uncertain. The current budget forecast provided limited flexibility. Should the monitoring exercise identify a potential overspend, contingency plans would be developed with the MPS prior to the next meeting.

The Deputy Commissioner said that the cause of the potential overspend was overtime incurred to cover major public order events and BOCU Commanders’ action to cover lack of manpower through overtime.

A member asked what additional costs would be incurred by policing the New Years’ Eve celebrations. The Chair stated that this issue had continued to be raised with the Mayor. Notification of the formal proposals for the events was expected at any time and until these were known it was difficult to predict actual costs.

A member questioned the 12% predicted overspend for IT. The MPS Director of Resources attributed this to the outsourcing contract the cost of which had increased after the original number of items for servicing had been underestimated.

Resolved:

1. that the full year forecasts and expenditure to date be noted;
2. that contingency plans be developed with the MPS for the next meeting to cover any potential overspending.

18. 2001/02 intermediate draft budget submission

(Agenda item 4)

Members reviewed a report which presented proposals for the submission of an intermediate draft budget for 20001/02 to the Mayor. Members were invited to approve or vary the proposals.

The Treasurer highlighted that the figures had been produced to a tight timescale and a critical examination was required prior to the final budget submission should reflect the findings of the proposed review of the civil staff pay structure.

It was further commented that ways of insulating against the cost and funding for pensions should be explored and progress should be made on this issue over the next couple of years. A projection of pension costs over the next 10/15 years would be included in a report to a future meeting.

A member highlighted the apparent high cost of the Metvest trial and evaluation and requested that this be looked at in more detail. The Deputy Commissioner said that the Metvest was being redesigned to make it more comfortable for female officers. The Treasurer added that a more detailed report would be presented to a future meeting.

The high cost of the vehicle maintenance contract was also questioned and it was noted that this contract had also been subject to an increase through an underestimation of the vehicles covered by the contract. It was recognized that there were some problems with contracts previously awarded. A review had been initiated and lessons would be learnt from these experiences.

It was noted that the budget line for new service increases reflected an increase of 2044 officers over three years resourced from the Crime Fighting Fund. The Chair stated that it was a priority to increase the number of officers. The Committee agreed to amend this submission so that the provision for 2001/02 reflected an increase in police officers of 1050 over the original budget for 200/01.

A member was concerned that the budget of £2 billion was reviewed in a single report. If members were to bid for funding from the Mayor, they needed to be equipped with more detailed information to substantiate that bid.

The effect of the funding for additional officers on the precept was discussed. The Treasurer stated that he was not in a position to identify the impact on the precept until the funding from the Home Office was known. A more detailed report on the capital expenditure programme would be tabled at the next meeting.

A member asked what contingency was available to cover the additional officers if insufficient funding was awarded. The Treasurer pointed out that there was a policy contingency of £5mil. but beyond that further efficiency savings would be required and some apparent unavoidable increases would need to be contained.

Resolved:

1. That the final budget submission should reflect the findings of the proposed review of the civil staff pay structure.
2. That a projection of pension costs over the next 10/15 years be included in a report to a future meeting.
3. A more detailed report on the costs of the Metvest trial and evaluation be presented to a future meeting.
4. The provision for police officers in 2001/02 should be based on an increase of 1050 for the original budget for this coming year.
5. A more detailed report on the capital expenditure programme would be tabled at the next meeting.
6. The intermediate draft budget submission be approved subject to the proposed increase in police numbers.
7. The Treasurer and Director of Resources carry out a critical examination of all components of the submission before the final budget was considered.
8. The medium term position was noted.
9. The submission of information for the Mayor’s capital investment plan be approved; and
10. Further consideration be given at future meetings of the Committee to the following: a 3 year efficiency plan, linking budget to policy priorities and performance measures, review budget presentation, review capital programme.

19. Opening financial position

(Agenda item 5)

Members considered a report that provided an update on the establishment of the Authority’s opening financial position and recommended actions to incorporate the setting of appropriate provisions and reserves within the financial strategy.

The Treasurer said that a minimum general reserve of 1 per cent could be appropriate as part of an overall financial strategy. The Treasurer was asked to identify opportunities to deliver the financial strategy.

Resolved:

1. That the Authority adopt a financial strategy that included:
   • seeking to establish financial provisions in accordance with best accounting practice;
   • ensuring sustainable capital funding over the medium term;
   • putting in place appropriate insurance arrangements;
   • securing a budget which is properly funded for anticipated expenditure requirements;
   • setting aside prudent earmarked reserves; and
   • establishing a minimum general reserve of 1 per cent; and
2. That the Treasurer, either through the development of the budget or through ongoing management of the Authority’s finances, identify opportunities to meet this strategy.

20. Review of finance function

(Agenda item 6)

Members considered a report which provided an update on action following the review of the Finance function and identified next steps.

Resolved:
that the Committee note the broad conclusions of the consultant’s report on the review of the Finance function and progress to date on the original action plan and that the proposed next steps be reported to the next meeting of the Committee.

21. Arrangements for the annual planning process

(Agenda item 7)

Members reviewed a paper that proposed joint MPA/MPS working and oversight arrangements for producing the policing, performance and efficiency plans required for 2001/02.

The membership of the proposed oversight panel was increased to include Nicholas Long.

Resolved:

1. That the proposed joint working arrangements be endorsed; and
2. That the proposed oversight arrangements be endorsed with the addition of Nicholas Long as a member.

22. HMIC reports and inspection process

(Agenda item 8)

Members considered a report which outlined the MPA’s responsibilities through the different stages of the HMIC inspection process. This included member involvement in the inspection; the reporting and monitoring process; and proposed Terms of Reference for the lead committee.

Following further consideration of this issue by the Chair and Officers it had been proposed that the lead coordination role on inspections should go to the Chair’s Coordination and Urgency Committee. This Committee would then refer the individual inspection reports or recommendations to the appropriate committee.

A member asked if there would be provision for members to see the draft reports. The Deputy Commissioner replied that he could see no reason why this should not be done although the number of copies and circulation needed to be managed.

Resolved:

1. That the key stages of the inspection process and the extensive role given to the police authority be noted; and
2. That the Chair’s Coordination and Urgency Committee be the lead Committee for coordinating the HMIC inspection process.

23. MPS response to HMIC recommendations and Committee role

(Agenda item 9)

Members reviewed a paper which provided a status report from the MPS showing the current position on the implementation of each recommendation in the four relevant HMIC inspection reports to which the MPS had responded over the past two years.

Resolved:
that the report be remitted to the Chair’s Coordination and Urgency Committee for any action required.

24. Management arrangements for best value

(Agenda item 10)

This paper proposed new arrangements for managing 'best value' and proposed roles and responsibilities for Members within those arrangements.

A member said that he supported the proposals for MPA ownership of the best value process and understood that Sir John Quinton had volunteered to be the representative member for Best Value Review on crime. A volunteer was sought for the bureaucracy review. Any nominations for this role should be made to Reshard Auladin.

It was noted that the final report on the complaints review was almost complete and that some resultant changes had already been made. A report on this issue would be tabled at the next meeting.

Resolved:

1. That a report on the best value review of complaints be tabled at the next meeting.
2. That the management structure described in the paper be implemented. and
3. That the roles and responsibilities for members described in the paper be endorsed.

25. The approach to challenge in best value reviews

(Agenda item 11)

Members considered a report which set out the requirements under best value to challenge the services that were provided by a best value authority, the way they were provided and by whom. It proposed a set of principles that should govern the meeting of those requirements and exemplified how those principles could be translated into options for providing the challenge element to best value reviews.

Resolved:

1. That members of the MPA should provide challenge and customer focus to each review.
2. That each review should subject its work to independent challenge over and above that provided by the MPA lead member.
3. That principles for meeting the requirements for independent challenge be agreed as set out in the paper.
4. That Option 4 in Appendix B to the report form part of the overall approach; and
5. That each review be required to set out, for review by the appropriate level in the best value management structure, how the defined purpose of challenge would be met, taking into account the strengths and weaknesses of the chosen option(s) in relation to the principles to be met.

26. 28-30 Wanstead High Street, London E11

(Agenda item 15)

The Committee agreed to discuss this report as a non-exempt item.

Approval was sought from members to authorize disposal of the site in Wanstead High Street that was formally occupied by two houses, on the basis of obtaining best value from the disposal. Consequently this site would not be sold for open space as sought by a local action group.

This matter had been referred from the Chair’s Co-ordination and Urgency Committee for more detailed consideration. This had been done by the Estates Sub-Group who made the recommendation that legal obligations should be fulfilled and that best value should be obtained for the site.

Roger Evans opposed this recommendation that he believed would invoke displeasure in the local community.

Other members understood this view but considered that the MPA was under a duty to obtain best value for the site if a compatible solution should be obtained through measures such as a land swap these would be pursued. Harry Cohen, MP, and the Chair of the Evergreen Trust would be contacted personally about this issue.

Resolved:

1. That the MPS Director of Property Services be authorized to negotiate with interested parties to obtain the best value for the sale of the land, including the transfer of responsibility for progressing the objection to the UDP.
2. That in the event that the objection was not properly progressed, appropriate action be taken to ensure the MPA obtained best value from disposal of the site.
3. That Harry Cohen, MP and the Chair of the Evergreen Trust be contacted personally about this issue.

Send an e-mail linking to this page

Feedback