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Report 10 of the 17 Apr 01 meeting of the Finance, Planning and Best Value Committee and sets out the case for investment in the MPS finance function to enable the MPS to develop the capacity to deliver the services required and expected of it.

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Business case for investment in the finance function

Report: 10
Date: 17 April 2001
By: Treasurer and Commissioner

Summary

This report sets out the case for investment in the MPS finance function to enable the MPS to develop the capacity to deliver the services required and expected of it.

A . Recommendation

  1. Members recommend for approval to the Authority the case made for £900,000 investment in the MPS finance function in the current year (full year effect £1,588,000) to restructure and reskill the MPS finance function, thereby addressing the current limitations in capacity.

B. Investment case

1. This report has been produced on the specific request of the Audit Panel; following consideration of the Management Letter relating to the 1999/2000 prepared by KPMG (AP/01/06 on 8 March 2001), in particular those sections of the management letter relating to the modernisation of the finance function and financial control.

2. The 'Business Case for Investment in the Finance Function' (Appendix 1) sets out the current position, the investment required and the benefits to be derived from this investment. There are significant improvements being demanded of the MPS finance directorate by Members, the Treasurer and the senior management of the MPS, as well as external pressures to improve performance.

3. The business case argues that it is not possible for the MPS finance function to deliver a genuine and significant improvement in service delivery without investment. Moreover, an organisation of the size and complexity of the MPA/MPS with such significant assets under its control should be intent on developing a finance function on a par with the best in local government.

4. The investment requirement of £900,000 in the current financial year (with a full year effect of £1,562,000) is significant but would mean that expenditure on the central finance function of the MPS remains below 0.3 per cent of the net revenue expenditure of the MPA/MPS.

C. Financial implications

This report recommends investment in the MPS finance function of £900,000 in the current financial year (with a full year effect of £1,562,000). The 2001/02 budget provided for £22.2 million on measures to improve the recruitment and retention of civil staff in the MPS. This provision could be made available to implement the investment in the finance function recommended in this report.

D. Background papers

None.

E. Contact details

The author of this report is Colin Balkman, Acting Deputy Treasurer.

For information contact:

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

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