Contents
Report 8 of the 15 May 01 meeting of the Finance, Planning and Best Value Committee and discusses provision of budget and monitoring information to the GLA budget committee to assist its work in scrutinising budget development and monitoring achievement of budget objectives.
Warning: This is archived material and may be out of date. The Metropolitan Police Authority has been replaced by the Mayor's Office for Policing and Crime (MOPC).
See the MOPC website for further information.
Provision of budget and monitoring information to the GLA budget committee
Report: 8
Date: 15 May 2001
By: Treasurer
Summary
The GLA Budget Committee has requested information to assist its work in scrutinising budget development and monitoring achievement of budget objectives. The report proposes a response for agreement by the Committee.
A. Recommendation
Members agree the response to the request for initial information from the GLA Budget Committee.
B. Supporting information
Request from the GLA Budget Committee
1. Attached at Appendix 1 is a copy of a letter received from the chair of the GLA Budget Committee. The report referred to in the letter has not been circulated but it identifies areas of business for the Budget Committee relating to functional bodies as follows.
- budget development;
- budget monitoring;
- best value – performance plans and reviews;
- business plans;
- being consulted on significant virements.
2. As a first step we are asked to provide a statement setting out:
- how the MPA will carry out budget planning and development;
- who is going to do it;
- the main budget strategy;
- how we intend to carry out budget monitoring;
- how we propose to monitor performance against business plans;
- a summary of our business plan.
3. The remainder of this report sets out a proposed response to this request.
Budget planning and development
4. The budget for 2002/03 will be developed in conjunction with the Mayor. As yet no timetable or guidelines have been set for this process. However the MPA's budget proposals will be developed through the following set of activities:
- the development of the MPA's corporate strategy. Only limited work on this was possible in the 2000/01 part year;
- medium term financial projections of expenditure and funding. An initial exercise has been carried out, which will be regularly updated;
- a programme of 2000/01 year-end outturn reviews scrutinising budget performance in relation to operational performance;
- a programme of scrutiny of individual budget lines;
- identification of efficiency savings through the efficiency and effectiveness review programme, Best Value and other initiatives such as a review of income generation;
- development of financial strategies and policies;
- evidence from the monitoring of expenditure against the 2001/02 budget.
5. The budget development work will be led by the Finance Planning and Best Value Committee with final approval, at each stage, by the full Authority. The Treasurer will provide overall direction for the work on behalf of the Committee. The Commissioner and the MPS Management Board will be responsible for the input from the MPS for which the MPS Director of Resources will manage the detailed preparation.
6. The budget strategy will be determined through the dialogue with the Mayor.
Budget and performance monitoring
7. Budget monitoring takes place on a monthly cycle. The detailed statements are prepared by the MPS Finance Department and discussed with the MPA Treasurer to establish agreed conclusions. The position is then reported to the Finance Planning and Best Value Committee. Strict virement controls have been instituted for 2001/02 which will ensure that the comparison with the original budget is transparent. Corrective action will be agreed as necessary.
8. Budget monitoring information will be expanded to cover the achievement of significant developments included in the 2001/02 budget. These include the planned increase in police officer numbers, the measures to improve recruitment and retention of civil staff and the programme of IT developments. Identification and delivery of efficiency savings will also be subject to specific monitoring.
9. Performance against policing targets set out in the Policing and Performance Plan is also monitored monthly and reported to the Professional Standards and Performance Monitoring Committee. That Committee, as well as scrutinising overall performance, selects particular aspects of performance to analyse in greater depth at each meeting. The Human Resources Committee carries out a similar exercise in respect of performance information on recruitment, retention and other staffing indicators. And the full authority has a comprehensive performance report tabled as a standing item monthly.
10. Monitoring information will be brought together into a regular budget implementation report to the Finance Planning and Best Value Committee.
11. A copy of the summary of the Policing and Performance plan 2001/02 will be attached to the response.
Conclusion
12. Members are asked if they wish to add to or otherwise amend the proposed response to the GLA Budget Committee.
C. Financial implications
None.
D. Background papers
None.
E. Contact details
The author of this report is Peter Martin, Treasurer.
For information contact:
MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18
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