Proposal for 2001/02 budget implementation

Report: 7
Date: 20 March 2001
By: Commissioner

Summary

This paper describes progress made by the MPS in implementing its budget for 2001 / 2002 following agreement, subject to certain conditions, at the GLA Assembly on 14 February 2001 to the Mayor's budget. It outlines a number of reports that the MPS intends to submit in order that the Authority can monitor and scrutinise the management of the MPS' budget. No decisions are required at this stage.

A. Recommendations

It is recommended that:

• a budget Implementation Report be submitted to each FPBV meeting tracking progress on the GLA Budget Motion in respect of the MPS;
• the Efficiency and Effectiveness Review work will be separately reported;
• the existing reporting of Best Value and Best Value Reviews continues;
• performance against Policing Plan Targets is reported through Professional Standards and Performance Monitoring Committee;
• work on the Medium Term Financial Strategy is separately led by the MPA Treasurer.

B. Supporting information

Background

1. At the Finance Planning and Best Value (FPBV) Committee meeting on 20 February 2001 the Treasurer and the Commissioner submitted a paper (FPBV/01/16) which reported the final outcome of the budget process for 2001/2002. The report recorded that at the GLA Assembly on 14 February 2001, the Chair of the MPA had spelt out how the Authority would take a more proactive role in monitoring and scrutinising the management of the budget for 2001/2002 in order to ensure that the budget objectives are delivered, that base spending is effectively scrutinised and that required savings are being identified and delivered.

2. In particular, ten strands of activity were identified which would contribute to this role. These were set out in the paper.

3. Some of these ten strands of activity will require on-going monitoring throughout the next financial year. Others represent discrete tasks. It is the intention of the Commissioner to produce a report, the Budget Implementation Report, for future FPBV meetings highlighting progress on those strands of activity which require on-going monitoring. In addition a number of separate reports will be produced in due course.

4. Since the last FPBV meeting the Commissioner has appointed Keith Luck, Director of Resources, to lead the Budget Implementation Project, progress on which will be reported through the MPS Resource Allocation Committee. A senior member of the Resources Directorate has been seconded full time to act as project manager and a Budget Implementation Project Team has been identified, including some full time members. The team now meets weekly to drive rapid progress and has established strong links with operational colleagues.

Proposals for reporting progress on the ten strands

5. Budget Monitoring: Existing budgetary reporting arrangements will be enhanced to give a greater level of detail and the new reporting arrangements will be incorporated into an overall Budget Implementation Report.

6. Police Officer Recruitment and Retention: Detailed reports on recruitment and retention issues are routinely submitted to the Human Resources Committee. A summary showing total number of recruits, wastage figures and resulting overall police numbers will be incorporated into the Budget Implementation Report highlighted above.

7. Civil Staff Pay Measures: Following the report on the work being undertaken by Hay Management Consultants on civil staff pay and grading, the MPS will produce a strategy document indicating how the recommendations will be taken forward. Detailed reports on this work will be submitted to the MPA Human Resources Committee.

8. Information Technology Programme: An internal structure exists within the MPS to monitor achievements with IT projects and budget spend. Future recommendations will be made on how such information can be included in reports to FPBV.

9. Efficiency Savings: A summary of progress with planned efficiency savings will be included in reports to this committee. The process for identifying efficiency savings is dealt with in a separate report on this agenda.

10. Budget Scrutiny: At a working level, the MPS will undertake a programme of scrutiny of individual budget lines. The MPA Treasurer will be represented in this work.

11. In addition, the MPS will put in place a programme of year end outturn reviews, which will scrutinise budget performance in conjunction with operational performance.

12. Mayor's Independent Efficiency and Effectiveness Reviews: This initiative is being managed separately by the Authority and will thus not form part of the routine monitoring proposed above.

13. Best Value: The reporting structure for best value includes project boards for each of the major reviews. MPA representatives are members of each of these boards. In addition, MPA officers work alongside MPS staff within the Best Value Support Team. It is not intended therefore to submit any additional reports on this strand.

14. Performance against Policing Plan Targets: Performance against Policing Plan targets is reported through the Professional Standards and Performance Monitoring Committee.

15. Income Generation: The MPS is commissioning consultants to undertake a review of potential sources of income generation.

16. Financial and Budget Controls: Proposals have been produced to devolve a significant proportion of budgets to Borough commanders, other OCU commanders and heads of business units. Alongside this, however, urgent work is being undertaken to develop rigorous control procedures to ensure financial integrity in line with previous actions agreed with the Treasurer.

17. Medium Term Financial Framework: Work on this strand is being progressed separately under the direction of the Treasurer.

Review arrangements

18 As highlighted above it is intended that a Budget Implementation Report will be produced for future FPBV committee meetings highlighting a number of aspects as outlined above

19. Additional one-off reports will be produced for the Finance, Planning and Best Value in due course.

C. Financial implications

The above programme for monitoring and scrutiny will provide regular opportunities for reviewing progress with budget (and performance) objectives.

D. Background papers

• Report to Finance, Planning and Best Value - 2001/2002 Approved Budget - 22 January 2001

D. Contact details

The author of this report is Keith Luck, Director of Resources, MPS.

For information contact:

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

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