Minutes

Minutes of the meeting of the Finance Committee held on 19 February 2004 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)
• Peter Tickner (Director of Internal Audit)
• Ken Gort (Assistant Director of Internal Audit)
• John Crompton (Committee Services)

MPS staff:

• Chief Superintendent Harrison
• Chief Superintendent Mackie (representing Commander Messenger)
• Alastair Thompson (Deputy Director of Resources)
• Sharon Burd (Director of Finance)
• Alan Croney (Director of Property Services)
• Phil Scutchings (Director of Technology)
• Mike Aston (C3i Programme Director)
• David Willis (Property Services)
• Terry Price (Head of Corporate Finance)
• Craig Watkins (Head of Business Support)
• Chief Superintendent Mark Gore attended for agenda item 18

Part 1

135. Apologies for absence

(Agenda item 1)

There were none.

136. Declarations of interests

(Agenda item 2)

There were none.

137. Minutes of the meeting held on 18 December 2003

(Agenda item 3)

Resolved: That the minutes of the meeting held on 18 December 2003 be agreed and signed as a correct record.

138. Chair and members’ update

(Agenda item 4)

No reports were given.

139. 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 December 2003 and provided an update to the projected financial outturn for the year. The Committee was also asked to approve two budget virements.

The Head of Corporate Finance reported that there had been an overspend on external forensic services, and undertook to supply Sir John Quinton and Reshard Auladin with the details of the suppliers concerned. He also reported that that there may be more police officers in post than had been anticipated at the start of the new financial year and the effects of this were being borne in mind in drawing up the revenue budget for 2004/05.

The Chair said that it was not satisfactory that the Committee was being asked to approve a large virement for Integrated Borough Operations rooms yet there was not a report on the subject on the agenda for the meeting. The C3i Programme Director apologised and explained that following consideration by the MPS Resource Allocation Committee a report would be submitted to the April meeting of the Finance Committee. He hoped that the Committee would still agree to make the virement at this stage.

Members commented that in addition to the question of the large overspend on police overtime there was an underlying concern that even though this issue had been discussed many times there was still a need for greater clarity by members over many aspects of this area of expenditure to enable the Committee to monitor more effectively. For example, how the overtime budgets operated at BOCU and OCU level, and how overtime might be controlled to bring it in line with the PNB requirement. The Committee also needed to understand the reason for the apparent paradox that the amount of police overtime had increased despite the higher number of officers when logic might suggest that the need for overtime working would have gone down.

In summing up the ensuing discussion the Chair asked for a report to be submitted to the next meeting of the Budget group on how members could more effectively scrutinise the overtime budget and expenditure.

Resolved – That

1. the report be noted.
2. a virement of £2m from police pay into police overtime for partnership working be approved.
3. a virement of £2m to fund capital expenditure for Integrated Borough Operations rooms in Boroughs from underspending budgets in the Deputy Commissioners Command; and
4. a report on how issues relating to police overtime could be scrutinised by members be submitted to the next meeting of the budget group.

140. Cost of policing public order events in 2003

(Agenda item 6)

A report was submitted which set out the policing costs associated with major public order events that occurred during 2003.

The Head of Business Support explained that references to the number of police officers deployed for particular events in the data related to shifts worked.

Members referred to the national and international functions and asked whether the officers were satisfied that there was adequate grant to cover the costs actually incurred especially in the context of a continued need for high visibility policing in response to the war in Iraq.

The Treasurer gave details of relevant expenditure and funding for 2002/03 which would indicate that the specific funding for national, international and capital city functions broadly covered the actual costs incurred at that time. He also reminded members that the potential for an emerging shortfall had been raised with the Home Office and work was being carried out to investigate the current position.

Referring to the Notting Hill Carnival Nicholas Long stated that it was a matter of regret that the recommendations made two years ago by the Mayoral Advisory Group on Carnival the greater use of trained stewards to reduce the amount of police officers required had not been followed through. He would urge the Authority not to lose sight of this issue in view of the large expenditure on policing Carnival – exacerbated by the fact that it occurred over a Bank Holiday weekend.

Members stated that the information did not provide the full picture of the full financial implications of these events – for example, any consequential legal actions. The Head of Business Support undertook to submit a report to the next meeting that provided this information.

Members commented that abstractions continued to be an issue in some boroughs Chief Superintendent Mackie undertook to provide details of abstractions levels for all events in the previous 12 months and not just those where more than 500 officers were deployed.

Resolved – That

1. the report be noted; and
2. further information be provided on abstractions.

141. Capital Programme Monitoring 2003-04

(Agenda item 7)

The report provided forecasts of capital expenditure for 2003/04 as at the end of the third quarter. It also provided details of actual expenditure on capital projects from 1 April to 31 December 2003.

In reply to a request, the Head of Corporate Finance agreed that future reports would include comparisons of expenditure against previous years.

Resolved - That

1. the report be noted; and
2. the necessary adjustments to the capital budget in respect of Edinburgh House, accommodation for security officers and Integrated Borough Operation rooms as set out in paragraphs 2 and 11 be agreed.

142. Budget 2004/05 - update

(Agenda item 8)

A report was submitted which set out in the final grant settlement and other announcements relating to 2004/05 funding and consequential amendments were made to the final budget proposals.

The Treasurer reported that following the London Assembly meeting on 18 February the Mayor’s final budget proposals were now approved. The Treasurer assured members that the police precept had been set having regard to the available information on potential capping, but reiterated that capping remained a risk.

Sir John Quinton said that leaving aside the capping issue, the Treasurer was to be congratulated on achieving the approved budget.

Resolved -That

1. the latest information on funding for 2004/05 and the final amendments reflected in the Mayor’s final budget proposals be noted; and
2. a report be submitted to the Authority meeting on 25 March concerning the allocation of the budget across the business groups.

143. Capital Programme 2004/05 - 2008/09

(Agenda item 9)

A report was submitted which set out the current position with regard to the final development of the capital programme for 2004/05 to 2008/09.

Resolved – That

1. the details of the capital settlement for 2004/05 be noted;
2. approve an adjustment to the expenditure profile for Transport Services’ in 2005/06, 2006/07, and 2007/08 be approved;
3. the inclusion within the capital programme for 2004/05 of the purchase of urgent helicopter equipment be approved);
4. it be noted that full details of (i) how additional funding made available by the favourable capital settlement 2004/05 should be utilised; and (ii) all projects to be undertaken within the capital programme 2004/05 to 2008/09; will be presented to the full Authority on 25 March 2004;
5. the arrangements for reporting of the Prudential Code financial indicators be noted; and
6. the proposals in respect of the establishment of a capital strategy and comprehensive asset management plan be noted.

144. Efficiency plan monitoring 2003/04

(Agenda item 10)

A report was submitted which set out the forecast position against the MPS’s efficiency plan as at the third quarter and provided an update on the position reported at the last meeting of the Committee by reporting on a meeting held with HMIC to discuss the plan.

Resolved - That

1. the variation to the efficiency plan to include compensation savings of £5 million under the cash releasing savings be endorsed; and
2. the result of the third quarter inspection with HMIC which scored the plan as “A” be noted.

145. Consultation on new Police Pension Scheme

(Agenda item 11)

The Home Office has published a consultation paper on the review of the police pensions scheme, copies of which had been sent to members. A report was submitted which asked the Finance Committee to consider the issues around costs and financing.

The Treasurer confirmed that the Human Resources Committee was due to consider the details of the new pension scheme, but the financial aspects were independent of any changes which might be made to the scheme itself.

The Treasurer reported that he would be attending the first meeting of the working group referred to in paragraph 9 which was due to be held on 26 February. The working group would provide a forum to deal with points of detail on the proposed new financing arrangements as they emerged.

Resolved – that the MPA response as set out in paragraph 30 be agreed.

146 Treasury Management Strategy

(Agenda item 12)

A report was submitted which set out the Treasury Management Strategy recommended for 2004/05.

Sir John Quinton referred to paragraph 14 and said he would counsel caution with regard to the proposal that monies be placed with the top twenty building societies. He explained that one of the consequences of the demutualisation process was that some of the societies in the top twenty remaining societies were very small. There was a higher level of risk in placing large sums with small societies. It was agreed that the officers would re-examine this aspect of the strategy.

Resolved- That subject to clarification on the point concerning building societies the Treasury Management Strategy be approved.

147. Police Property Act Fund

(Agenda item 13)

A report was submitted concerning the proposed arrangements for the disbursements of grants and administration of the Police Property Act Fund. (The Co-ordination and Policing Committee had addressed the grant criteria at its meeting on 6 February 2004).

Members commented that the proposed administrative arrangements for the disbursement of funds as detailed in paragraph 3 were unnecessarily cumbersome given the sums likely to be available in each borough and the report did not contain suggestions on how the London wide grants would be allocated. The officers were asked to devise a less bureaucratic system - preferably without the use of application forms. One suggestion was that there be an annual allocation of funds to boroughs, the borough Commander would allocate grants in consultation with the link member and would submit an annual return.

Resolved - That

1. officers review the proposed arrangements for the disbursement of PPAF in the light of the comments made by members.
2. the proposals for the future administration of the Police Property Act Fund as set out in paragraphs 4 to 8 of the report be agreed.

148. Review of residential rents and service charge

(Agenda item 14)

A report was submitted which requested the Committee to consider the introduction of a standardised minimum rent and to determine the level of rent increase for resident officers for 2004/05.

A letter dated 28 February from the General Secretary of the Metropolitan Police Federation requesting the Committee not to increase the rents was tabled.

In reply to a question from a member, the Director of Property Services advised that there were currently no non-MPS employees living in police accommodation.

Resolved – That

1. a standardised minimum rent on residential quarters be introduce to harmonise the lower quartile of MPS rents with those prevalent in the social housing sector;
2. the rents for residential quarters be increased in line with option 3 – that is, the latest information on housing association annual rent increases; and
3. the service charge payable on section house bedspaces also be increased in line with option 3.

149. Microsoft Enterprise Agreement

(Agenda item 15)

A report was submitted which sought authority to sign an enterprise agreement with Microsoft.

Resolved - that approval be given to the signing of a Microsoft Enterprise agreement for a period of three years.

150. Exclusion of press and public

(Agenda item 16)

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 151 agenda item 21- Exempt appendix to agenda item 15
The information was noted.

Minute 152 agenda item 22- Keyholder Database
Further report to be submitted to next meeting.

Minute 153 agenda item 19 - Old Street - oral report
Current position noted.

Minute 154 agenda item 24 -Bow Street - oral report
Current position noted.

Minute 155 agenda item 27 - exempt minutes of the meeting held on 18 December 2003
The minutes were agreed and signed as a correct record.

Send an e-mail linking to this page

Feedback