Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 17 October 2000 at Church House, Westminster, London SW1.

Present

Members

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

MPA staff:

• Ian Gaskell (Deputy Clerk)
• Peter Martin (Treasurer)

MPS staff:

• Ian Blair (Deputy Commissioner)
• Keith Luck
• Diana Marchant

Also present 10 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

27. Apologies for absence

(Agenda item 1)

An apology for absence was received from Cecile Lothian.

28. Minutes – 19 September 2000

(Agenda item 2)

The Chair stated that on page 3 the first word in the third line of the sixth paragraph should read "policy" and not "policing" as shown. It was agreed that the minutes be amended accordingly.

Resolved:
that subject to the foregoing correction the minutes of the meeting held on 19 September 2000 be agreed and signed as a correct record.

Arising:
23. Arrangements for the Annual Planning Process

It was noted that a meeting of the Oversight Panel was due to be held on 30 October. Members questioned the necessity for there to be two separate bodies looking at oversight and it was agreed that the Panel should consider the need for the separate members sub group on planning.

26 Management Arrangements for Best Value
The Deputy Clerk reported that at its meeting on 26 September 2000 the Consultation, Diversity and Outreach Committee had sought agreement from the Finance, Planning and Best Value Committee for it to be responsible for "signing off" the Consultation Review.

The Committee agreed to the request.

29. Treasury management – quarterly monitoring report

(Agenda item 3)

The Committee received a report which gave details of the treasury management portfolio and summarised performance for the six months to the end of September 2000.

The Committee noted that a low risk policy was followed and the performance very closely tracked that of the London Interbank Bid Rate. In order to give the Committee a wider picture the Treasurer was asked to review the options for benchmarking performance against other Police Authorities and local authorities.

In reply to questions the Treasurer advised that the management of the operation was carried out entirely in house. The forthcoming Best Value Review of Managing Finance would give an opportunity to consider the options for outsourcing.

Resolved:

1. The treasury management performance for the period 1 April to 30 September 2000 be noted.
2. The options for benchmarking to be reported to a future meeting.

30. Capital and revenue budgets monitoring

(Agenda item 4)

The Committee received a report which set out the current position against budget and the forecast outturn.

The Committee noted that it was anticipated that there would be an overspend on the revenue budget. Wherever possible appropriate action would be taken to contain expenditure falling in the current financial year. The Treasurer reported that he would seek clarification with the Home Office on the payment of £9m for street crime initiatives.

The Committee requested that future reports contain more details on the constituent parts of the budget especially those relating to pay.

The Chair reminded the Committee that at the last meeting it had been noted that a cause of potential overspend was in connection with policing major public order events. The Director of Resources advised that following the recent announcement from the Mayor the cost of policing this New Year's Eve celebrations had been reviewed. The total additional cost over and above that falling in a "normal" year had been estimated at £3m of which £1.3m represented "cash" and £1.7m "opportunity." This was significantly less than the additional cost incurred in 1999.

With regard to the capital budget it was noted that a report would be submitted to the next meeting on the Five Year Capital Budget and Funding Programme. In reply to questions from members the Director of Resources explained that decisions on virement to capital were taken locally under devolved budgets. Consideration was being given to increasing the limit from the present level of £1000.

Resolved:
the position be noted.

31. Civilian staff pensions

(Agenda item 5)

The Committee received a report which was also considered by the Human Resources Committee at its meeting on 16 October. The MPA has taken over the responsibility for the administration of the Metropolitan Civil Staffs Superannuation Scheme (MCSS). The MCSS is an unfunded scheme and pensions are therefore paid out of the current revenues of the MPA. It is also non-contributory apart from 1.5 per cent contributions in respect of dependents' benefits. A revised scheme will be introduced in 2002. The costs of the scheme are on a rising trend. The report set out options available to this Authority including conversion of the MCSS to the Civil Service scheme and joining the local government pension scheme. It also recommended the appointment of consultants to advise the Authority.

The Treasurer said that there would be consultation with the staff.

Resolved:

1. Tenders be invited to appoint consultants to advise on the options in respect of civilian staff pensions.
2. Graham Tope and Nicholas Long be appointed to represent the Committee on the appointing panel.

32. Review of resources allocation formula

(Agenda item 6)

Members considered a report on the Resource Allocation Formula which is the process used by the MPS to allocate resources to borough OCUs. The use of a formula-based approach such as RAF is now generally accepted in the MPS but a number of challenges have been made to RAF which support the proposal for a review. The review would address these challenges and consider the alternatives which could be put into place from 2002 onwards. One of its outputs would be to ensure that the allocation of resources to boroughs is transparent.

Resolved:

1. That the MPS and MPA conduct a joint review of the principles underlying the Resource Allocation Formula and the existing RAF model.
2. A report on the process and timetable be submitted to the next meeting.

33. Strategic review of risk management and insurance

(Agenda item 7)

Members received a report which contained a draft specification for a review of risk management and insurance and proposed arrangements for appointing consultants. The Committee has previously established a panel of three members to give detailed consideration to the matter.

Resolved:

1. The draft specification for the review of risk management and insurance be approved.
2. Roger Evans, Nicholas Long and Richard Sumray be appointed to a panel of members to receive presentations from short listed firms and to advise the Treasurer on the appointment.

34. Programme of best value reviews years 2-5

(Agenda item 8)

The Committee considered a report which set out the current five year programme of best value reviews.

The Committee was advised that there would be two half day workshops for members.

Resolved:

1. The Authority's review of the programme of best value reviews be based on working through the process used by the MPS last year (ie: option C).
2. Members of the Best Value Sub-Group undertake this work prior to a draft programme of reviews being circulated to the December meeting of the Finance Planning and Best Value Committee and full Authority as appropriate.

35. Initial views on MPA priorities 2001/02 for the MPS

(Agenda item 9)

The Committee considered a report which set out the information currently available relevant to the selection of priorities for 2001/02. It was noted that the process for selecting criteria was at a fairly advanced stage which limited the scope for undertaking a detailed consultation exercise this year but existing opportunities could be explored – eg: MPA link members could raise the issue with their local Borough Commander and provide feed back.

The Committee noted that the Mayor's Draft Transport Strategy was due to be published shortly. The Deputy Commissioner spoke of the need for the policing aspects of emerging Mayoral and GLA priorities to be identified and discussed. For example, there were many implications surrounding congestion charging and bus lane enforcement. He undertook to submit a report to the next meeting setting out the MPS perspective on these issues.

The Committee agreed that the suggested set of priorities listed in annex E be used to stimulate further debate subject to the "recruitment" priority being expanded to "recruitment and retention."

Resolved:

1. Members provide initial feedback on the priorities emerging from the consultation, audit and analysis undertaken to date.
2. The initial feedback is used to develop objectives, priorities and targets which will be confirmed in the light of complete information once it is available.
3. The oversight panel set up to oversee the production of plans for 2001/2002 progresses detailed work on priorities, objectives and targets prior to making recommendations to the November meeting of the Finance, Planning and Best Value Committee and subsequently to the full Authority.

36. GLA sustainable development principles

(Agenda item 10)

The MPA is represented on the GLA Sustainable Development Forum. The GLA has drafted a Schedule of Sustainable Development which comprises a basic set of principles to which the objectives of sustainable development can be delivered within the Mayor's strategies. It is intended that they should form the foundation for individual development strategies under the GLA general powers. The Committee considered a report which sought the views of the Authority on the draft Schedule of Sustainable Development.

The Committee felt that the wording of the recommendation was rather too general and that the GLA should for example be given some idea as to what constituted "operational policing priorities."

Resolved:
that the recommendation be not adopted and a further report be submitted which suggested a more detailed response to the GLA.

37. Restructuring of finance function

(Agenda item 11)

The Committee considered a report which outlined a structure for the Finance Directorate which addresses the key objective of enhancing competencies and skills in support of the Action Plan for Financial Management arising from a report commissioned by the Treasurer.

There will be one Head of Finance managing the Finance Directorate on behalf of the Director of Resources. There are four functional divisions within the structure: Corporate Finance, Accounting and Financial services, Business Support and Financial Systems.

Resolved:

1. The proposals for restructuring the finance function as detailed in the report be agreed.
2. The management changes and action which are already taking place be noted with reports on progress and the cost implications to be reported to a future meeting.

38. Exclusion of the press and public

(Agenda item 12)

Resolved:
that under section 100 A(4) of the Local Government Act 1972 the press and public be excluded from the meeting for the following items of business on the grounds that they involved disclosure of exempt information as detailed in the paragraphs of Schedule 12A of the above Act.

Summary of exempt items

Minutes: 19 September 2000
The Committee received the exempt minutes of the Committee meeting held on 19 September 2000.

Museum of London Policing
The Committee considered a report on proposals to create a Museum of London Policing.

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