Minutes

Minutes of the meeting of the Finance Committee held on 9 June 2003 at 10 Dean Farrar Street, London, SW1H 0NY.

Present:

Members:

• Graham Tope (Chair)
• Reshard Auladin
• Elizabeth Howlett
• Eric Ollerenshaw
• Sir John Quinton
• Richard Sumray

MPA staff:

• Catherine Crawford (Clerk)
• Peter Martin (Treasurer)
• John Crompton (Committee Services)
• Ken Hunt (Deputy Treasurer) attended for consideration of agenda item 11

MPS staff:

• Keith Luck (Director of Resources)
• Ailsa Beaton (Director of Information)
• Sharon Burd (Director of Finance)
• Alan Croney (Director of Property Services)
• Gary Pugh (Director of Forensic Services)
• Stuart Middleton (Director of Transport Services)
• Paul Andrae (Deputy Director of Procurement Services)
• Terry Price (Head of Corporate Finance)

Part 1

201. Apologies for absence

(Agenda item 1)

Apologies for absence were submitted on behalf of Diana Johnson, Nicholas Long and Rachel Whittaker.

202. Declarations of interests

(Agenda item 2)

Agenda item 24 - Sir John Quinton declared that he had previously been a director of Wimpey Homes Ltd.

203. Minutes of the meeting held on 10 April 2003

(Agenda item 3)

Resolved: That the minutes of the meeting held on 13 February 2003 be agreed and signed as a correct record.

204. Chair and Members’ update

(Agenda item 4)

No reports were given.

205. Capital budget 2002/03 – provisional outturn

(Agenda item 5)

A report was submitted which set out details of the provisional outturn position for capital expenditure during 2002/03 as recorded at 19 May 2003. An early indication was also given of sums arising through project slippage that are required to be carried forward through reserves to be re-allocated during 2003/04.

The Director of Finance amended the eighth line of paragraph 13 by replacing “underspend” with “overspend”.

Members requested that as part of the strategy to address the issue of underspending, consideration be given to including overprogramming in future programmes and including a risk analysis of items in the programme.

Resolved - That

1. an increase to the capital programme of £10.559m in respect of the capitalisation of revenue expenditure on IT equipment be approved with funding to come from a revenue contribution to capital outlay (RCCO);
2. approval be given to increases to the capital programme of (a) £0.669m in respect of vehicles; and (b) £0.359m for photographic and catering equipment, purchased from savings achieved in revenue expenditure. Funding is to come from a revenue contribution to capital outlay (RCCO);
3. the provisional and adjusted provisional outturn information by business group as shown in appendix 1 be noted;
4. it be noted that outturn figures are provisional and may change as part of the process for finalising the 2002/03 accounts; and
5. it be noted that confirmation of the final outturn position, and details of sums required to be carried forward to 2003/04 in respect of named capital projects, will be provided within a report to the 10 July meeting of the Finance Committee.

206. Revenue budget 2002/03 - provisional outturn

(Agenda item 6)

A report was submitted which provided the latest information on the revenue outturn position for the financial year 2002/03 and considering proposals for dealing with the qualification items from 2001/02 and the transfer of monies to appropriate provisions and reserves.

The Committee asked that the report to be submitted to its next meeting include information on projects which had been considered under the heading of “budget pressures” but which were not being recommended for further consideration.

Resolved – That

1. the 2002/03 underspending should be used a) to maintain the 1% general reserve, b) to provide for prudent earmarked reserves, and c) to set aside provisional sums to meet identified budget pressures;
2. the intention to report in July on the scope for meeting budget pressures within the 2003/04 budget thus releasing all or part of the provisional sums set aside for this purpose be noted;
3. the position be reviewed at the 10 July meeting in the light of the final outturn and the review of the 2003/04 budget; and
4. the report to be submitted at the July meeting includes information on projects which had been considered under the heading of “budget pressures” but which were not being recommended for further consideration.

207. 2004/05 budget guidance

(Agenda item 7)

The Mayor published his guidance for the preparation of the 2004/05 budget and medium term financial plan on 30 May. Details were submitted together with a proposed timetable for producing the budget submission.

Resolved – That

1. it be noted that the budget guidance for 2004/05 issued by the Mayor and that the implications will be further considered at the July meeting; and
2. the proposed budget timetable and the need for coordination in relation to planning, equalities and consultation be noted.

208. Police pensions – forecast costs

(Agenda item 8)

A report was submitted which presented the conclusions of the independent actuaries’ review of future police pension costs. The report included an assessment of the long-term budget implications and a possible strategy to mitigate the budget impact.

The Treasurer advised the Committee that proposals had been made to amend the accounting for pension conventions, which could improve the stability of the Authority’s costs. A decision was awaited from Ministers and he suggested that the Authority should press for an early decision on the matter.

In reply to a question the Treasurer confirmed that police authorities were not permitted to establish their own pension funds.

Resolved -That

1. the projections of future police pension costs produced by independent actuaries and the consequent requirement for annual budget increases of 6-7% over the next decade be noted;
2. it be considered appropriate to establish an earmarked reserve to mitigate the future cost of lump sum commutations;
3. such a reserve be considered in the review of the 2002/03 outturn; and
4. agree that information on the projections be provided to the GLA, on behalf of the Mayor, the Home Office and the police expenditure forecasting group and the government be pressed for an early decision with regard to the proposed changes to the accounting procedures relating to the treatment of pensions.

209. Efficiency and effectiveness programme

(Agenda item 9)

A report was submitted which updated the Committee on the progress of the efficiency and effectiveness review programme, outlined the revised governance arrangements for the Project Board, advises of £500,000 budget transfers and presented the draft final report on Accenture’s review of sharing good practice.

The Committee asked that when it received the draft final report on the review of sharing good practice, a presentation be arranged.

Resolved - That

1. the progress on the Efficiency and Effectiveness review programme be noted;
2. the revised governance arrangements for the Efficiency & Effectiveness Project Board be noted;
3. the virement arrangements for the one-off transfer of £500,000 direct to MPS budgets, and
4. agree to receive the draft final report from Accenture on Sharing Good Practice and note the action taken to progress the review and the proposed further report to this committee in September. It be further agreed that a presentation be made to the September meeting.

210. Financial management strategic programme

(Agenda item 10)

A report was submitted which set out progress against the financial management strategic programme which was presented to the former Finance, Planning and Best Value Committee on 21 February 2002.

The Committee requested that a report on the evaluation of the pathfinder boroughs for devolved budgets be submitted at the earliest opportunity.

Resolved - That

1. the progress against the financial management strategic programme be noted; and
2. a report be submitted at the earliest opportunity on the evaluation of the devolved budgets to the pathfinder boroughs.

211. Contract regulations and scheme of delegation

(Agenda item 11)

A report was submitted which reviewed the Authority’s Contract Regulations and Scheme of Delegation and proposed amendments.

Resolved - That

1. the proposed amendments to the draft Contract Regulations and the Scheme of Delegation be submitted to the Co-ordination and Policing Committee and full Authority; and
2. the Co-ordination and Policing Committee be asked to recommend the new Contract Regulations and Scheme of Delegation to the full Authority, subject to any amendments proposed as a result of the two committees’ deliberations.

212. Indemnity cover

(Agenda item 12)

A report was submitted which requested the Committee to approve a general indemnity cover for civil staff.

Resolved – That a general indemnity be introduced as set out in the appendix to the report.

213. Central London property plan

(Agenda item 13)

A report was submitted which sought approval to take a lease on a new building. The impact of taking the lease on the rest of the estate was also outlined in the exempt report.

In reply to a question the Director of Property Services confirmed that there had been consultation with the staff affected about the use of open plan offices.

Resolved - That the recommendations in the linked exempt report relating to the taking of a new lease at Edinburgh House, Kennington, the principle of a low-density scheme for Tintagel House and the consequential effects on the estate be adopted.

214. Estate strategy – building towards the safest city 2003-2008

(Agenda item 14)

The Metropolitan Police Service's vision is to make London the safest major city in the world and the framework for achieving this is set out in "Towards the Safest City". In support of this vision, the Director of Property Services, working with Nicholas Long, Lead Member on Estates Issues, MPA, and others has developed a strategy document entitled "Building Towards the Safest City". This addresses the problems faced with an ageing estate and how strategy will be adapted to meet ever changing policing needs for the next five years.

The Director of Property Services pointed out that the word “Building” should be inserted before the word “Towards” in the recommendation.

Resolved – That the estates framework strategy “Building Towards the Safest City 2003-08” be adopted and published.

215. Estates update

(Agenda item 15)

A report was submitted which updated the Committee on estates matters. The following points were made on specific items

Key Home Buyer Scheme

The Director of Property Services advised that following discussions with colleagues in the HR Directorate a report it was hoped to submit a report to the next meeting on a possible extension of the eligibility criteria.

Resolved - That the report be noted.

216. MPA environmental progress report 2003

(Agenda item 16)

The final draft of the Environmental Progress Report 2003 was submitted. The Committee was also asked to note the separation of the publication of the Progress Report from the Strategy and the change of frequency of publication of the Strategy.

Resolved - that

1. the separation of the publication of the Environmental Strategy from the Annual Environmental Report be noted;
2. the publication of an Annual Environmental Report be endorsed;
3. the 2003 Annual Environmental Report be endorsed;
4. the publication of a 5 year Environmental Strategy be endorsed; and
5. he publication of an accompanying leaflet to the Annual Environmental Report, identifying the performance highlights and initiatives be endorsed.

217. Criminal Justice accommodation issues

(Agenda item 17)

One of the MPA’s priorities is to work, in partnership, to revitalise the Criminal Justice system. The Committee has previously received reports that dealt with the current plans to facilitate the co-location of Crown Prosecution Services (CPS) in MPA property to facilitate this priority and to progress national agreements. A linked exempt report outlines the estate issues and the recommended way forward agreed with the CPS in respect of the phase 1 co-location arrangements, the provision of a centralised Traffic Criminal Justice Unit (CJU) - with CPS - and more extensive use of Colindale and Edmonton Police Stations by the CPS.

Resolved – That the recommendations in the linked exempt report be adopted.

218. Procurement contract for replacement armoured vehicles

(Agenda item 18)

The MPS has a requirement for 13 armoured vehicles that will perform a number of different security roles for the Public Order OCU (CO11) and the Force Firearms Unit (SO19). A competitive tendering exercise to three companies has been successfully completed and a report was submitted which requested the authority for the award of the contract.

Resolved – That a contract for the supply of 13 armoured vehicles be awarded to Jankel Armouring on the terms detailed in the linked exempt report.

219. MPS information, computing and telecommunications infrastructure and ITS strategy 2003/04 – 2005/06

(Agenda item 19)

A report was submitted which sought the Committee’s approval to procure and build a data repository and associated facilities through which all future MPS information services will be delivered.

Resolved – That

1. the aim of developing an MPS-wide ICT Infrastructure to support its information systems be endorsed;
2. agree to the procurement, the hardware and services required to build an MPS-wide data repository and associated facilities. The total cost of delivering the data repository is £21.1m. In addition, annual running costs of £1.2m will be incurred (£0.5m in 2003/4). The Committee’s approval is being sought to initiate contract action for the first part of this - £8.6m.; and
3. the expenditure of £8.6m of funds from within the already agreed DoI Infrastructure Programme budgets be agreed for this procurement. A formal competitive procurement procedure will be determined and managed by Procurement Services in order to achieve Best Value within the required timescales.

220. MPS ‘e’ policing strategy

(Agenda item 20)

A report was submitted setting out the purpose of the Strategy and indicating what is being developed within the Criminal Justice Sector (CJIT and PITO) and in London (the GLA, London Connects and Boroughs). The report also set out the initiatives already being attempted by the MPS and invited members to identify e-initiatives relevant to the interests of Londoners in line with the UK Government’s '2005' agenda.

With regard to the second recommendation a member referred to the best value review into crime management which had made recommendations concerning the greater use of e-initiatives.

The Director of Information said that it was relatively straight forward to give an immediate acknowledgment of a reported offence: there were however a number of issues to be resolved within the MPS and with partner organisations in the criminal justice system concerning the further tracking of a case towards judicial disposal.

Resolved – That the overall direction of the MPS e-Policing Strategy, which was ratified by the MPS Management Board on 18 December 2002 be noted.

221. Implementation of the forensic commercial strategy

(Agenda item 21)

A report was submitted which requested the Committee to implement the forensic commercial strategy that was agreed by the Committee at its meeting on 14 November 2002.

Resolved – That recommendations in the linked exempt report concerning the implementation of the strategy under which forensic services be shared between three providers be adopted.

222. Exclusion of press and public

(Agenda item 22)

Resolved - That 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 7,8, 9 and 12 of Schedule 12A to the above Act.

Part 2

Summary of decisions made on exempt items

Minute 223 agenda item 23- The Central London property plan
The information was noted and approved.

Minute 224 agenda item 24 – Estate update
Exempt information on the sale of Rochester Row and Hounslow Heath was noted.

Minute 225 agenda item 25 – Criminal justice accommodation issues
Approval given to conclude a property Memorandum of Understanding and associated leases/financial commitments.

Minute 226 agenda item 26 - Procurement contract for replacement armoured vehicles
Approval given to the award of a contract to Jankel Armouring Ltd.

Minute 227 agenda item 27 - Implementation of the forensic commercial strategy
Recommendations relating to this contract were agreed. Also agreed to make representations to the Home Office concerning issues which had arisen during the procurement process.

Minute 228 agenda item 28 – Bow Street
Exempt information was noted.

Minute 229 agenda item 29 - exempt minutes of the meeting held on 10 April 2003
The exempt minutes were confirmed and signed as correct.

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