Minutes

Minutes of the meeting of the Finance Committee held on 15 September 2003 at 10 Dean Farrar Street, London, SW1H 0NY.

Present:

Members:

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

MPA staff:

• Catherine Crawford (Clerk)
• Peter Martin (Treasurer)
• David Riddle (Deputy Clerk)
• John Crompton (Committee Services)

MPS staff:

• Sir Ian Blair (Deputy Commissioner)
• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance)
• Alan Croney (Director of Property Services)
• Terry Price (Head of Corporate Finance)

Part 1

30. Apologies for absence

(Agenda item 1)

There were none.

31. Declarations of interests

(Agenda item 2)

No declarations were made.

32. Minutes of the meeting held on 10 July 2003

(Agenda item 3)

Resolved: That the minutes of the meeting held on 10 July 2003 be agreed and signed as a correct record.

33. Chair and Members’ update

(Agenda item 4)

No reports were given.

34. Revenue budget monitoring 2003/04

(Agenda item 5)

A report was submitted which sets out the income and expenditure for the MPA/MPS to the end of July 2003 and provides an update to the projected financial outturn for the year.

The Director of Resources said that investigations were being carried out to understand the reasons for the predicted overspend on police overtime. Members commented that in addition to the budgetary implications there was also concern that this appeared to be going against the spirit of the PNB agreement concerning the work-life balance.

The Committee requested that the work to more accurately define the base figure for police overtime be carried out urgently so that it could be fed into the 2004/05 budget process.

The Director of Finance reported that at the last meeting of the budget group it had been agreed to review the cost of transferred pensions.

Resolved - that the report be noted.

35. Capital programme monitoring 2003/04 – first quarter

(Agenda item 6)

A report was submitted which provided forecasts of capital expenditure for 2003/04 as at the end of the first quarter.

Resolved –

1. the revised budget sum for 2003/04 of £197.487m be approved;
2. it be noted that the recorded expenditure at the end of the first quarter 2003/04 was £20.199m; and
3. a reduction of £40.879m in the capital budget in respect of the C3i programme in recognition of timing difficulties associated with key deliverables be approved.

36. Medium term financial plan 2004/05 to 2007/08 – interim report

(Agenda item 7)

This report set out an update of the position in the development of the medium term financial plan focusing on the revenue budget for 2004/05. It outlined progress made against the requirement to identify savings of £50 million set by the MPS Management Board and endorsed by the Finance Committee on 10 July 2003. It also outlined the review of growth and savings proposals carried out by the multi-disciplinary team set up to undertake this work.

The Treasurer reiterated that it was important to note that the projections did not take account of the step change programme and therefore did not include any further growth in police numbers.

The Committee noted that the percentage quoted in paragraph 28 should read 18.7%.

The Deputy Commissioner said he wished to congratulate the officers concerned for their hard work in progressing this major area of work in a period which had included the summer holidays.

The Director of Resources said that arrangements were in place to discuss relevant savings items with staff representatives and the Police Federation.

In reply to a question from a member the Treasurer confirmed that the report to considered at the budget meeting of the Committee on 13 October would indicate the savings implications for all three of the Mayor’s budget options.

Members asked for an indication of the other items which made up the £50 million savings and which had not been included at appendix 3. The Deputy Commissioner said that the list would be made available for members to comment on.

Resolved – That

1. the current position in the development of the MTFP and Revenue Budget for 2004/05 in line with the budget guidance given at the Finance Committee on 10 July 2003 be noted;
2. the specific proposals for growth and savings currently under consideration as set out in the report be noted;
3. any further guidance on specific issues that should be taken into account in drawing up the final budget proposals; and
4. it be confirmed that the MPS should finalise its budget submission in accordance with the overall budget guidance given by Finance Committee on 10 July.

37. Update on implementation of activity based costing in the MPS

(Agenda item 8)

A report was submitted which updated the Committee on the developments relating to the national implementation of ABC as part of the Policing Performance Assessment Framework.

Resolved -That the report be noted.

38. Efficiency plan 2002/03

(Agenda item 9)

A report was submitted which advised that HM Inspectorate of Constabulary had advised that the efficiency target set for 2002-03 had been achieved.

Resolved -That the report be noted.

39. Naming of the new Serious Crime Group building, Sutton

(Agenda item 10)

The new PFI development at Sutton is nearing completion. A report was considered which advised that an alternative address has been sought from the Post Office for the Serious Crime Group part of the accommodation.

Resolved - That the Serious Crime Group building at Sutton be named 'Patrick Dunne House'.

40. Acton Police Station

(Agenda item 11)

This report considered, as part of the medium term accommodation requirements for the Ealing Borough OCU, the works to Acton police station. Previous approval for the first stage investment appraisal was received at the meeting of the former Finance Planning and Best Value Committee on 18 April 2002, including the tendering of the works to Acton police station. The second stage investment appraisal reviews the first stage assumptions and recommendations and seeks approval to proceed with an award of a contract for the proposed works.

Resolved – That approval be given to the award of a contract for the building works to Acton police station, if the recommended tender is within the budget cost estimate detailed in this report (subject to permitted variance within the new Contract Regulations/Delegated Powers).

41. Insurance arrangements

(Agenda item 12)

A report was submitted which outlined the arrangements put in place for the Authority’s liability and property insurances.

Resolved – That

1. the Committee notes the arrangements put in place under urgency procedure for liability insurances; and
2. the Treasurer in consultation with the Chair of the Committee, be authorised to finalise arrangements for property insurances, as outlined in the linked exempt report, to be operative from 1 October 2003.

42. Exclusion of press and public

(Agenda item 13)

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, 9 and 12 of Schedule 12A to the above Act.

Part 2

Summary of decisions made on exempt items

Minute 43 agenda item 14- Exempt appendix to Acton police station
The information was noted.

Minute 44 agenda item 15- Insurance arrangements
Information in support of agenda item 12 noted.

Minute 45 agenda item 16 – Old Street police station
Recommendation relating to the disposal was adopted

Minute 46 agenda item 17 - Bow Street police station
Clerk and Treasurer authorised to hold without prejudice discussions with relevant parties.

The meeting closed at 4.15 p.m.

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