Financial contributions to external organisations

Report: 13
Date: 10 July 2003
By: Commissioner and Treasurer

Also presented at:

• Co-ordination and Policing Committee –21 July 2003

Summary

This report provides details of past financial contributions to external organisations, proposes criteria for assessing future applications for financial assistance, and the future administration of the Police Property Act Fund.

A. Recommendations

The Committee is asked:

1. To consider the proposed criteria for assessing future grant applications, and to submit any views to the next meeting of the Co-ordination and Policing Committee.
2. To note the list of previous financial contributions to external organisations.
3. To approve the proposed arrangements for the future administration of the Police Property Act Fund, as set out in paragraphs 7 to 14 of this report, subject to the views of Coordination and Policing Committee on the approval process proposed in paragraph 12.

B. Supporting information

1. At the Coordination and Policing Committee meeting on 19 May 2003, members considered a requested for a contribution of £86,000 to the ASCENT Citizenship Centre. Following discussion, members of the Committee requested that detailed criteria for assessing such applications for financial assistance should be drafted and considered by members; and, that a list of previous contributions to organisations be provided.

Proposed grant criteria

2. It is suggested that the criteria for disbursement should derive from the MPS Agenda for Action (Mission, Vision, Values) in the following objectives:

• cut crime and the fear of crime
• improve police/community relations at the local level
• work in local partnership.

3. The funds should be disbursed to established organisations with which the MPS are working to fulfil these objectives, (including those being newly established in partnership with the MPS) The organisations should:

• meet one (or more) of the above criteria
• undertake activities which benefit residents within the Metropolitan Police District
• operate on a not-for-profit basis
• be viable, have suitable premises (where applicable) and have sufficient expertise to carry out and manage its activities
• have other sources of funding
• not seek to promote or oppose any political party or take part in party political activity
• operate fair and equal practices in employment and in providing services
• be able to account for how the disbursement is to be used and how the results will be measured.

The organisations themselves need not be registered charities.

4. Any assistance will not:

• provide funds for services or goods in substitution for those which are normally provided from Government or local authority funds
• directly support a local authority or other public organisation (other than in partnership arrangements)
• fund individuals employed by the MPA or MPS; or MPS registered charities.

5. It is suggested that disbursement (other than partnership arrangements) be made by way of grants up to a maximum of £50,000 per individual award and a limit of £100,000 in any five-year period. It is also suggested that 20% of the funding should be made available for pan-London activities, and the remaining 80% should be used to support local initiatives.

6. The proposed criteria obviously need to reflect the policy objectives of the MPS and thus it is suggested that the Co-ordination and Policing Committee should formerly consider and approve the criteria at its next meeting. This committee is thus requested to discuss the criteria and submit its views on the criteria to the COP committee

Previous financial contributions

7. A list of recent financial contributions above £5,000 (all from the Police Property Act Fund) to outside organisations is attached at Appendix 1.

Future funding for financial contributions

8. The MPS Revenue Budget does not include any specific sums for contributions to external organisations. The only identified possible source of funding is the Police Property Act Fund and it is suggested that all future applications be considered for funding from this source (subject to meeting the proposed grant criteria above) and any specific conditions relating to the Fund.

The Police Property Act Fund (PPAF)

9. The income accruing to the PPAF is variable and sums available for distribution can vary considerably. The current balance is approximately £1m – but no disbursements have been approved since 1998 although some payments have taken several years to be submitted. It is proposed that, subject to this Committee’s approval, an initial sum of £500,000 be set aside for applications within 2003/04 financial year, with a review to take place in March 2004 and a further sum approved for 2004/05.

10. Regulations under the Police (Property) Act 1897 and its subsequent amending legislation permit the disposal of property that comes into police possession in connection with a criminal charge (or a suspicion of a criminal offence being committed) where the owner has not been ascertained or no court order has been made. The proceeds are to be used for:

• the cost of conveyance, storage and safe custody of the property and in connection with the same and otherwise in executing the regulations
• payment of reasonable compensation, the amount of which shall be fixed by the relevant authority, to persons by whom the property has been delivered to the police
• payments of such amounts as the relevant authority may determine for charitable purposes as they may select.

The Metropolitan Police Authority is now the relevant authority.

11. The administration of the Fund is governed by legislation under which the role of the relevant authority is defined as follows:

• to nominate the auditor of their force’s PPAF account
• to set the amount of compensation to be paid to persons delivering property to the police
• to direct the investment of the money held in the PPAF
• to authorise their force to retain property (other than money) for police purposes
• to determine amounts to be paid for charitable purposes of their selection.

A summary of the relevant legislation is attached at Appendix 2.

12. It is proposed that, in future, the MPA should approve the policy for disbursement (including the grant criteria) and that MPS Finance Services manage the receipt of applications and their approval. Subject to the Finance Committee’s views this approach also needs confirmation from Coordination and Policing Committee.

Future management of the PPAF

13. It is proposed that certain responsibilities of the MPA for the management of the PPAF be delegated as follows:

1. Auditors
   The selection of auditors for the PPAF annual accounts be delegated to the MPS Director of Finance Services subject to this being undertaken by competitive process, at regular intervals of no longer than five years, the Authority being informed of the outcome of the selection and advised of any problems arising from the auditors’ performance.
2. Compensation for the delivery of property
   The Director of Finance Services will consult the Treasurer to the MPA should this fee be required.
3. Investment of funds
   The management of the PPAF investments be delegated to MPS Director of Finance Services who will ensure financial propriety, the secure investment of funds and, as far as possible, maintenance of the value of the Fund.
4. Retention of property
   The MPA to delegate to the MPA Director of Finance Services the authority to retain property (other than money) for police purposes for which no owner has been ascertained and which would otherwise be disposed of.

14. In addition the following financial safeguards are proposed for the administration of the Fund:

• annual accounts are produced at the end of each financial year, which are audited by the external auditor and are signed by the Director of Finance Services
• a copy of the annual accounts is sent to the Treasurer of the MPA
• the management of funds is undertaken in accordance with best financial practice and investment advice is obtained from a competent authority
• the systems for the operation of the Fund are audited at regular intervals by the MPA’s internal auditors
• the Treasurer to the MPA is consulted regarding policy and contentious issues.

15. A report summarising the annual accounts and list of grants awarded during the financial year would also be submitted to this Committee annually.

C. Equality and diversity implications

All organisations applying for financial assistance will be required to operate fair and equal practices in employment and in providing its services

D. Financial implications

The proposals have no impact on the MPA budget.

E. Background papers

• Revenue Budget Files
• Policy Property Act Files

F. Contact details

Report author: Terry Price, Head of Corporate Finance

For more information contact:

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

Appendix 1: Financial contributions from Police Property Act Fund to external organisations (above £5,000)

Appendix 2: Legislation

a) The Police (Property) Act 1897

The Police (Property) Act 1897 allows a Secretary of State to make regulations for the disposal of property which comes into the possession of police in connection with any criminal charge or suspicion of a criminal offence being committed. The Secretary of State may make regulations for the disposal of property where the owner had not been ascertained and no court order had been made. The regulations may authorise the sale of such property and the proceeds used for:

• the expenses of executing the regulations
• payment of reasonable compensation to any person by whom the property has been delivered into the possession of the police
• payments for the benefit of discharged prisoners or of persons dependent on prisoners or discharged prisoners or by contributions to the funds of any discharged prisoners’ aid society, any police court mission or police court poor box
• or such purposes as the Secretary of State may consider expedient.

The property had to be retained by police for one year before it could be sold, unless it was perishable or its custody involves unreasonable expense when it could be sold at any time.

The regulations also provided for the money to be held in a separate account called the Prisoners’ Property Fund and its investment in any securities authorised under the Trustee Act 1803. The Fund was to be audited by an auditor nominated by the Police Authority.

The relevant authority for the administration of the Fund in respect of the Metropolitan Police was the Receiver for the Metropolitan Police District.

b) The Police (Disposal of Property) Regulations 1975

The Police (Property) Act 1897 Regulations were updated by the Police (Disposal of Property) Regulations 1975. The 1975 Regulations reduced the time for property to be retained to 6 months if the property is being held under section 43 of the Powers of Criminal Courts Act 1973. They allowed the Prisoners’ Property Fund to be invested as the police authority thought fit and for the Fund to retain the interest from its investments. The applications for the Fund were defined as:

• to pay the cost of conveyance, storage and safe custody of the property and in connection with its sale
• to pay compensation, the amount of which shall be fixed by the Police Authority, to persons by whom property has been delivered to the police
• to make payments of such amounts as the Police Authority may determine for such charitable purposes as they may select.

The 1975 Regulations also permitted the Police Authority to delegate the powers and duties of the Police Authority set out in those regulations to the Chief Officer of Police. The Fund had also to be audited by an auditor nominated by the Police Authority.

c) Police (Property) Act 1997 and its Regulations

The 1997 Act provide police with the power to retain property (other than money) for police purposes (subject to the agreement of the relevant authority). The Regulations also permit income derived from the investment of money held under the 1997 legislation to be added to and become part of the Fund.

d) Greater London Authority Act 1999

The definition of the relevant authority as the Receiver was repealed and transferred to the Metropolitan Police Authority.

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