Arrangements for the disbursement of grants and administration of The Police Property Act Fund

Report: 13
Date: 19 February 2004
By: the Commissioner and the Treasurer

Summary

This report proposes arrangements for the disbursements of grants and administration of the Police Property Act Fund (PPAF).

A. Recommendation

1. To approve the proposed administrative arrangements for the disbursement of PPAF funding as set out in paragraph 3 of this report.
2. To approve the proposed arrangements for the future administration of the Police Property Act Fund, as set out in paragraphs 4 to 8 of this report.

B. Supporting information

1. At the Co-ordination and Policing Committee meeting on 6 February, members agreed the grant criteria for the distribution of funds for charitable purposes from the Police Property Act Fund.

2. There remain two main residual issues: the administration procedures for the distribution process and the general administrative arrangements under the PPAF legislation.

Administration procedures for the distribution process

3. Within the criteria agreed by the MPA for the disbursement of PPAF funds for charitable purposes, the MPS proposes the following arrangements:

• A strategy for release of the funding over a pre-determined period of time. The PPAF currently has approx. £1m available for distribution (although this is an accumulated sum over 5 years since the last distribution). It is suggested that half of this sum i.e. £500,000 be allocated for grants in year 2004/05, and to retain the remaining sum for future years (subject to review in Spring 2005)
• that funding is directed towards the following major areas
  • local initiatives in boroughs through the community and partnership units, under the overall direction of each borough commander (consulting with the local MPA link member)
  • London/service wide projects.
• that each category is notionally allocated a proportion of the available funding. It is suggested that £400,000 is allocated to boroughs and £100,000 to London/service wide projects.
• that funding to boroughs is allocated according to local need, based on crime and deprivation factors. The sum available to each borough is likely to range from £5,000 to £20,000-with the average sum available being £12,500.
• applications for PPAF grants are scrutinised by Finance Services to ensure that they meet the criteria and are within the delegated limit for MPS approval; and to arrange for consideration by the Coordination and Police Committee if the application is outside the delegated limit.
• that a simple application form is utilised.

General administrative arrangements

4. 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.

5. 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.

Future management of the PPAF

6. It is proposed that certain of the MPA’s responsibilities 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 MPS 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.

7. 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.

8. 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

No specific issues identified.

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, MPS.

For more information contact:

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

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