Efficiency and effectiveness review programme

Report: 16
Date: 17 January 2002
By: Treasurer

Summary

This report presents the final report by Accenture on overtime. The Committee’s endorsement of the proposed action is sought. The report also notes that an appointment has been made for the Tranche 1 Property review.

A. Recommendations

1. Members note the recommendations made by Accenture in their report on overtime, subject to any further views which may be expressed by MPS in their paper (to follow) and instruct the Project Board to prepare an implementation plan and report back at the earliest opportunity;
2. That the appointment of Knight Frank as consultants for the Tranche 1 Property review be noted; and
3. Members note the progress being made on financial devolution.

B. Supporting information

Introduction

1. The Efficiency and Effectiveness Project Board met on 19 December 2001 with Accenture in attendance. Accenture produced an Interim report on FMEs and Interpreters and two scoping reports, income generation and forensics. When the Project Board has received final reports they will be made available to the committee.

2. The final Accenture report on Overtime (excluding attachments) is attached at Appendix 1 (see Supporting material). Two copies of the full report have been placed in the Members Room and other copies are available upon request. A response from the MPS to the Accenture report will be available for the committee as a later despatch. It is understood that there is broad support for the Accenture recommendations from the MPS. The Project Board will be seeking to secure an implementation plan and report back to this committee at the earliest opportunity. The Accenture report will also be considered by the Human Resources Committee at its meeting on 7 March 2002.

3. Members will be aware that expenditure on police overtime has exceeded the budget by more than £20 million in the last two years. The overtime budget for 2002/03 has been increased by just £10 million. There is therefore a requirement to achieve savings of at least £10 million from present levels of spending. The Accenture report identifies opportunities to achieve this. Some of the assumptions on reductions are dependant upon changes to national terms and conditions and implementation of such reduction will have to wait until such agreement has been reached nationally.

4. The Project Board also considered financial devolution and a progress paper is attached at Appendix 2 for members information. The committee received a report in November 2001 on integrating financial management with service management which identified a number of activities under way that will move the Service towards an integrated financial and service regime. One of the key enabling features identified was further devolution of budgetary control to levels appropriate to service delivery. A fuller report will be made to committee following the meeting of the Devolution Project Board on 21 January 2002.

Tranche 1 property review

5. Thirteen firms responded to the Invitation to Tender for Property Part 1 by the closing date. A shortlisting team comprising representatives from the three stakeholders, together with the Deputy Director (Estates) MPS prepared a shortlist of four firms.

6. The shortlisted firms were:

An Appointment Panel comprising Treasurer MPA (Chair), Nicholas Long, Director of Finance and Performance GLA and Director of Property Services MPS met on 7 January 2002. The Panel decided to accept the tender of Knight Frank. The property review is to commence shortly to enable the Project Board to agree a review brief at its meeting on 24 January.

Tranche 2 reviews

7. Bids have now been received for Tranche 2 of the three year programme. Shortlisting is underway. Nine bids were received for Package A (which comprised civilianisation, uniformed management structures, sickness personnel and shift patterns). Four bids were received for Package B (which comprised inspection, I.T. cost of failure/compensation claims). All tenderers bidding for Package B submitted bids for Package A. It is anticipated that the contract award and work commencement will be before April 2002.

C. Financial implications

Budget provision of £1 million has been made in the 2002-03 budget to fund the efficiency and effectiveness programme. Similar sums are to be provided in the following year to finance Tranche 3 of the review.

D. Background papers

None.

E. Contact details

Report author: Ken Hunt, Deputy Treasurer

For information contact:

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

Appendix 2: Budget devolution update

Work continues on each of the six work streams in preparation for further decisions to be put before the Devolution Project Board that sits on the 21st of January chaired by ACPRS. It is anticipated that some key decisions will be made in regard to devolvement at that meeting.

Workstreams

1. Disaggregation of Budgets
2. Organisational Design
3. Accountability Framework
4. Authority Framework
5. Operational Policing Measure
6. Managing Change and Evaluation

Papers in regard to the following budget lines are due to be circulated to the project board at the end of next week.

• Police Pay 59% of total MPS budget
• Abstractions
• Police Collisions

The decision to further develop the MPS duty management system (CARM) has been made. This is being progressed by the Devolution Project Team on directions of the Deputy Commissioner.

Each of the six Pathfinder sites is due to be visited by the MPS’s Internal Consultancy Group who will undertake analysis of current work loads for finance staff. This work is required to support the argument for additional staff for borough finance units.

The MPS Telephony budget at £19Million is due to be devolved across the whole of the service by April 2002.

Chris Channer
Superintendent Budget Devolvement Team
09.01.2002

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