Minutes

Minutes of the meeting of the Finance, Planning and Best Value Committee held on 19 June 2001 at Romney House, Westminster, London SW1.

Present:

• Graham Tope (Chair)
• Reshard Auladin (Deputy Chair)
• Nicholas Long (Deputy Chair)
• John Biggs
• Elizabeth Howlett
• Cecile Lothian
• Eric Ollerenshaw
• Richard Sumray
• Rachel Whittaker

MPA staff:

• Catherine Crawford (Clerk)
• Peter Martin (Treasurer)
• Peter Tickner (Head of Internal Audit)
• Derrick Norton (Best Value Officer)
• John Crompton (Committee Services)

MPS staff:

• Ian Blair (Deputy Commissioner)
• Tarique Ghaffur (Assistant Commissioner)
• Keith Luck (Director of Resources)
• Trevor Lawrence (Director of Property Services)
• Commander Graham James (Temporary Head of Transport)
• Barbara Riddell (Director of Corporate Development)
• Peter Peirce (Director of Catering)
• Bob Alexander (Head of Finance)

Also present: 20 members of the press/media and public and other staff members from the MPA and MPS.

Part 1

144. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of Sir John Quinton.

145. Minutes: 15 May 2001

(Agenda item 2)

Resolved:
the minutes of the meeting held on 15 May 2001 be agreed and signed as a correct record.

Arising:
141. Effectiveness and Efficiency Review Programme. Noted that Assistant Commissioner Ghaffur would join the programme board and that the Treasurer would continue to chair it.

162. Accommodation for Lambeth Borough. The Director of Resources reported that for financial reasons it had not been possible to proceed with the proposal. Nicholas Long, the link member for Lambeth, said he understood the Home Secretary had visited Brixton Police station. Representations had been made about the poor working conditions and he would urge that these be followed up by the Authority to the Home Secretary.

146. Chair and members' update

(Agenda item 3)

The Chair welcomed Elizabeth Howlett and Eric Ollerenshaw to their first meeting of the Committee and explained that they had replaced Cindy Butts and Roger Evans at the Annual General Meeting of the Authority held on 14 June. On behalf of the Committee the Chair also congratulated Assistant Commissioner Tarique Ghaffur on the award of the Queen's Police Medal in the recent Birthday Honours list.

Reshard Auladin reported that he has attended a meeting to discuss the best value review of complaints and a report would be submitted to the Professional Standards and Performance Monitoring Committee.

Resolved:
the report be noted.

147. Membership of the Committee's sub-groups

(Agenda item 4)

After discussion of a point raised by Rachel Whittaker it was agreed not to extend the membership of the Best Value Programme Board and it was noted that there would be opportunities for Members to sit on individual project review boards.

The Chair said that there would be merit in establishing an estate sub-committee which would have powers to make decisions on estate powers working to a strategy set by the Finance, Planning and Best Value Committee. The Committee asked for a report to be submitted to a future meeting on the terms of reference of such a sub-committee and also Elizabeth Howlett indicated that she would be interested in sitting on the new estate sub-committee. The Committee also requested a report on a proposed new sub-group to deal with risk issues eg: compensation and insurance. Noted that the terms of reference would need to take account of the activities of the Human Resources and Professional Standards and Performance Monitoring Committees.

Resolved:

1. the membership of the Best Value Programme Board be confirmed as Reshard Auladin (Chair), Jennette Arnold, Cindy Butts, Cecile Lothian, Richard Sumray and Richard Barnes (ex-officio);
2. the membership of the estate sub-group be confirmed (for the time being) as Nicholas Long (Chair), Cecile Lothian, Rachel Whittaker and Richard Barnes (ex-officio);
3. the membership of the Information Technology group be confirmed as Reshard Auladin (Chair), Nicholas Long, Richard Sumray, Rachel Whittaker or John Biggs;
4. a report be submitted to a future meeting on the terms of reference and membership for an estate sub-committee with powers to determine estate matters working to a strategy set by the Finance, Planning and Best Value Committee.
5. a report be submitted to a future meeting on the terms of reference for a risk sub-group.

(Secretary's note: John Biggs has said subsequently that he does not wish to serve on the Information Technology group and Jennette Arnold has indicated that she wishes to sit on the Best Value Programme Board).

148. Audit of Policing and Performance Plan: verbal presentation by District Audit

(Agenda item 5)

Kash Pandya supported by Jon Hayes and Kerry Reid outlined the emerging conclusions from the audit of the policing and performance plan. Mr. Pandya advised that the written report had already been submitted in draft form and that the report together with a response from the MPA would be submitted to the next meeting of the Committee.

Resolved:

1. that the report be noted;
2. that the MPA response to the audit of the policing and performance plan be submitted to the next meeting of the Committee.

149. Review of MPS initiatives, projects and programmes

(Agenda item 6)

A report was considered which outlined a review all MPS initiatives, projects and programmes which is being undertaken to rationalise the current position and to introduce a corporate governance framework for future projects, reviews and programmes.

Resolved:
the report be noted.

150. Process for preparing the policing and performance plan

(Agenda item 7)

A report was submitted which summarised the lessons learnt form the planning process used to prepare the 2001/02 policing and performance plan and proposed overarching principles and a process for preparing the 2002/03 plan.

An A3 size version of annex A to appendix 3 was tabled. A revised and expanded version of recommendation 3 was also tabled.

Resolved:

1. the lessons learned as described in appendix 1 be noted;
2. the planning principles at appendix 2 be endorsed;
3. the provisional priorities and objectives be agreed prior to the budget submission to the Mayor in October subject to:
4. obtaining the view of District Audit and, possibly, seeking formal legal advice;
5. reviewing priorities, objectives, targets and the budget submission once Ministerial priorities are known;
6. reviewing 2001/02 priorities, objectives, targets with a view to reducing the overall number;
7. undertaking as much consultation as is practical under the circumstances;
8. reflecting the views of borough commanders (to facilitate delivery of local crime and disorder strategies);
9. reviewing MPA/MPS processes and resources so that they support the new timetable;
10. overall (and subject to any legal advice) the MPA will be looking to make the best use of whatever information exists at the time a decision on priorities and objectives is needed to ensure an integrated and credible budget submission to the Mayor;
11. there will be a need to refine decisions iteratively following the October submission and early decisions on priorities and objectives will need to reflect the likely budget;
12. the remit and membership of the sub-group be endorsed with the inclusion of Elizabeth Howlett and there be no additional representation from the Consultation, Diversity and Outreach Committee;
13. a report on the consequences of the revised timetable for consultation be submitted to the Consultation, Diversity and Outreach Committee on 26 June.

151. Provisional outturn for 2000/01

(Agenda item 8)

The provisional financial outturn for 2000/01 with the implications for the Authority's reserves was submitted. Preliminary explanations for budget variances were provided and a process for a more detailed review was outlined.

The Treasurer reported on a meeting which had been held with the Commissioner, the Chair of the Committee, the two Deputy Chairs and himself on 14 June to discuss the way forward. Steps taken following this meeting included:

• a recognition of the need for a strong lead from "the top" to change the culture of the MPS to recognise its greater public financial accountability;
• a recognition of the need to understand the budget base line more fully;
• an acknowledgment that there was a deficiency in terms of skills and numbers of people employed in the finance function. Whilst this was being addressed through the recruitment of extra permanent staff there was an urgent need to take on more officers in the short term. An approach had been made through the Society of London Treasurers to seek seconded staff from borough Councils to cover this interim period. Discussions were also being held with the GLA to secure short term resources;
• weekly meetings would be held with the Chair and Deputy Chairs to review progress with reports to each meeting of the Committee;
• production of an action plan.

A further meeting with the Commissioner would be held in July.

The Deputy Commissioner reported on the actions being taken to change the culture so that financial management had a much higher priority within the MPS and stated that he would be chairing a budget group which would give very detailed consideration to all heads of expenditure.

Resolved:
(with Eric Ollerenshaw and Elizabeth Howlett asking that their names be recorded as dissenting from recommendation 2)

1. the outturn position (subject to external audit) of a £7.9m overspend be noted;
2. to endorse the rationale for the limited use of financial reserves and provisions, and that if this result is finally confirmed the Authority's opening balance sheet for 2001/02 will have a general reserve of just £12.1 million;
3. a more detailed outturn review be reported to the Committee in July.

152. Capital Expenditure Programme 2000/01 – summary outturn review

(Agenda item 9)

A review of the outturn capital expenditure programme for 2000-01 against budget was submitted.

Resolved:

1. it be noted that capital expenditure in 2000-01 totalled £76.9m which exceeded the budget of £73.3m by £4.6m which represents an overspend of 6.3 per cent
2. the overspend be funded form the unapplied capital receipts with the acknowledgement that the overspend will detrimentally impact upon the funding available for the capital programme in future years.

Arising:
the Director of Resources undertook to write to Eric Ollerenshaw with a detailed breakdown of the overspend in the Transport Services budgets outlined in paragraph 13.

153. Budget implementation

(Agenda item 10)

A report was submitted which described the 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 reported progress on the three budget priorities: police recruitment, civil staff pay measures and IT expenditure.

Resolved:
the proposals for reporting progress be agreed.

154. Budget monitoring

(Agenda item 11)

The Treasurer reported that as it had been necessary to concentrate on closing the accounts for the last financial year it had not been possible to generate a monitoring report at this stage for the current year. Figures for the first three months of the financial year would be submitted to the July meeting. He referred to the known budget pressures which are listed in paragraph 4 of agenda item 13 as an indication of the present position.

Resolved:
the verbal report be noted.

155. Medium term financial forecast 2002/05

(Agenda item 12)

A report was submitted which considered the implications of the process for developing the 2002/03 budget as proposed by the Mayor. Medium term financial forecasts were presented for approval for submission to the Mayor.

Resolved:

1. whilst accepting the timetable set by the Mayor clarification should be sought as to the degree of amendment that will be possible following the detailed budget submission at the end of October;
2. the timetable for member consideration of budget proposals be noted and the GLA be asked to clarify the precise timetable during December so that the Authority can make any necessary amendments to its meeting dates;
3. that the medium term financial forecasts set out in the report be approved for submission to the Mayor subject to the following reservations:

• none of the provisional developments is endorsed since this Authority has not agreed its priorities for 2002/03.
• the potential precept implications are noted.
• the demands identified should be the subject of further dialogue with the government on funding.

156. Review of budget priorities 2001/02

(Agenda item 13)

Details of priority items in the policing plan for which no additional provision had been made in the budget were submitted.

Resolved:

1. no new commitments be entered into at this stage in respect of policing plan priorities not included in the original budget for 2001/02;
2. the position be reviewed in October.

157. Efficiency and effectiveness review programme

(Agenda item 14)

At its April meeting the Committee agreed an efficiency and effectiveness programme. Proposals for tranche 1 reviews were submitted for consideration.

Resolved:

1. the proposed Tranche 1 Programme be agreed;
2. delegated authority be given to the Project Board to let contracts identified in Tranche 1 (Appendix 1), individually or on a collective basis, up to existing budgetary provision using the MPS Framework Arrangement for consultancy services;
3. the Project Board be asked to prepare commentaries on Tranche 2 and 3 reviews for presentation to the October meeting of the Committee ;
4. the facilitator role outlined in paragraph 10 be agreed;
5. the use of the emerging Corporate Strategy to inform the consultants' reviews be endorsed;
6. any underspend of the 2001-02 efficiency and effectiveness consultancy budget be transferred to balance sheet reserves to fund the continuing programme in future years;
7. any minor drafting changes needed for contract documentation be delegated to the Project Board;
8. quarterly reports on the progress of the tranche 1 programme be brought back to the committee, the first report being submitted to its October meeting;
9. Nicholas Long be nominated to serve on the selection panel.

158. Cost implications of public order events

(Agenda item 15)

A report was submitted which set out the policing costs associated with three recent major public order events.

Resolved:
the report be noted.

159. Grant negotiations

(Agenda item 16)

A report was submitted which set out the current position on grant negotiations and proposed short and medium term strategies for the MPA.

Resolved:

1. the current position on grant negotiations be noted;
2. consultants be engaged to develop proposals for input to the negotiations for 2002/03.

160. Funding for MPS recruit training

(Agenda item 17)

A report was considered which updated Members on work ongoing to cost recruit training within the MPS at the Peel Centre and progress on making an initial claim to the Home Office for such expenditure to be recognised as a cost falling uniquely on the Metropolitan Police Service.

Resolved:
the report be noted and the Treasurer write formally to the Home Office requesting additional funding for recruit training.

161. Annual financial review – treasury management

(Agenda item 18)

A report was submitted which presents the Annual Review of Treasury Management for the 12 month period ending 31 March 2001 and reviewed developments in the current financial year.

Resolved:
the report and the budgetary implications be noted.

162. Sexual assault referral centres - Havens

(Agenda item 19)

A report was tabled which set out proposals to extend the havens scheme across London following on from a pilot sexual assault referral centre (The Haven) based at King's College Hospital, Camberwell.

The Committee agreed that in view of the decision which had been made earlier in the meeting on the Review of Budget Priorities (agenda item 13) that it would not be appropriate to consider this item.

Resolved:

1. the report be deferred;
2. an item on the implications for the target in the policing plan be submitted to the Professional Standards and Performance Monitoring Committee.

163. Review of capital receipts for 2000-01

(Agenda item 20)

A report was considered which set out the details of capital receipts from property sales for 2000/01. These totalled £48.3 million against a target of £40 million.

Resolved:
the report be noted.

164. Firearms and public order training facility - update

(Agenda item 21)

A report was considered which set out the details of the Private Finance Initiative for the Firearms and Public Order Training Facility contract which has been the subject of previous reports.

Resolved:
the report be noted.

165. Future provision of section house accommodation

(Agenda item 22)

A report was submitted which considered the future demand for section house bedrooms in the light of the increased level of recruits joining the Service. It recommended re-opening section houses at Brentford, East Ham and Greenwich, the costs being met from receipts from the sale of Trenchard House and surplus housing stock. In the short term the use of hostel accommodation owned by others will be necessary

A supplementary paper (agenda item 22A) setting out the decisions of the MPS Resource Allocation Committee at its meeting on 12 June on this report was tabled.

Rachel Whittaker advised that the Central Westminster Police Community Consultative Group had asked her to express its concern at the disposal of Trenchard House. The Group had written several letters to the Director of Resources on its concerns at the adverse implications on the closure of this section House on policing in central London. The Member referred to previous discussions on this matter at the Estate sub-group and sought clarification on the decision the Committee was being asked to make.

In reply the Director of Property Services stated that there were other section houses which were fairly central. He also referred to discussions which were taking place with other providers of housing accommodation with a view to seeking nomination rights for police officers in central and east London based accommodation. He confirmed that the future of Trenchard House had been under consideration for some time and it had been concluded that it would be advantageous from a financial point of view to dispose of the property. Accordingly, the report before the meeting sought the Committee's approval to the sale of Trenchard House by means of an open market sale. A report on the tenders received would be submitted to the Finance, Planning and Best Value Committee for decision.

The Chair of the Estate Sub-group, Nicholas Long confirmed that the sub-group had fully discussed Trenchard House and had concluded it was now opportune to dispose of this property.

Resolved:

1. taking into account the decisions of the Resource Allocation Committee;
2. approval be given in principle to the use of Maurice Drummond Section House, Norman Kendall Section House and Brentford Section House for housing recruits;
3. schemes be drawn up for the renovation of these buildings with funding to be met from increased capital receipts in 2002/3;
4. tenders be sought for the supply of hostel accommodation to enable increased demand from single officers to be met;
5. Trenchard House be disposed of, with part of the funding to be used to assist with future upgrading of section house accommodation.

166. Equity share homes scheme

(Agenda item 23)

A report setting out details of a pilot scheme to sell flats owned by the MPA on an equity basis to eligible staff of the MPS was considered.

Resolved:

1. details of a pilot equity share scheme for the sale of up to 30 vacant flats from the MPA estate be noted;
2. consideration be given to the Director of Property Services extending the partnership with the housing associations to manage the disposal of equity share properties;
3. that it be noted that the scheme would apply to all MPS staff of constable rank or at grade 9 and below provided the applicants are first time buyers;
4. the Property Services Department, in conjunction with Personnel Department, prepare an appropriate process to prioritise applications in the event of schemes being over subscribed.

167. Joint sale of Rochester Row premises

(Agenda item 24)

Details of the result of the tender to sell this property jointly with the owners of the neighbouring property were submitted.

Resolved:
the report be noted.

168. Wembley police station

(Agenda item 25)

A report was submitted which sought approval to enter into contracts for the alteration and refurbishment of Wembley Police Station including the formation of a new custody suite and the conversion of Wembley Section House to form a new headquarters and centralised charging centre for the Borough of Brent.

Resolved:
the contract price negotiated by a two stage tender process with Mowlem is accepted and an extra sum is approved for expenditure on Information Technology and communication infrastructure outside of the contract.

169. Exclusion of press and public

(Agenda item 26)

Resolved:
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 paragraphs 8 and 9 of Schedule 12A of the above Act.

Summary of decisions made on exempt items

Agenda Item 27 Joint Sale of Rochester Row premises
Agreed an offer from Barratt Homes Ltd.

Agenda Item 28 Wembley Police Station
Agreed to enter into a contract with Mowlem and that a further sum of £490,000 be allocated for expenditure on information technology and communication infrastructure outside of the contract.

Agenda item 29 Vehicle Maintenance Contract
The Committee received a report on this contract.

Agenda item 30 Vehicle Removal Contract
The Committee received a report on this contract.

Agenda item 31 Catering Provision on north east area
The Committee received a report on this contract.

Agenda item 32 Exempt minutes of the meeting held on 15 May
These were agreed as a correct record.

The meeting ended at 5.20pm.

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