Minutes

Minutes of the meeting of the Finance Committee held on 22 April 2004 at 10 Dean Farrar Street, London, SW1H 0NY.

Present:

Members:

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

MPA staff:

• Peter Martin (Treasurer)
• David Riddle (Deputy Clerk)
• Ken Gort (Assistant Director of Internal Audit)
• John Crompton (Committee Services)

MPS staff:

• Chief Superintendent Mackie (for agenda item 3 only)
• DAC Richard Bryan
• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance)
• Alan Croney (Director of Property Services)
• Steve Atherton (Director of Procurement Services)
• Terry Price (Head of Corporate Finance)
• Craig Watkins (Head of Business Support)
• Commander Loughborough Chief Supt Greg Roylance
• Jonathan Bracken attended for consideration of agenda item 10
• Chief Superintendent Mark Gore attended for agenda item 20

Part 1

156. Apologies for absence

(Agenda item 1)

There were none.

157. Declarations of interests

(Agenda item 2)

The Chair declared a personal interest in respect of agenda item 10. The Director of Resources asked that it be noted that his wife was an employee of one of the firms referred to in agenda items 14 and 16.

158. Minutes of the meeting held on 19 February 2004

(Agenda item 3)

Resolved: That the minutes of the meeting held on 19 February 2004 be agreed and signed as a correct record.

Arising thereon-

• Minute 140 – cost of policing public order events in 2003 information on the abstraction levels was provided for members
• Minute 145 – Consultation on new police pension scheme

The Treasurer confirmed that reports on the financial aspects of the arrangements would be submitted to the Committee as and when necessary

159. Chair and Members’ update

(Agenda item 4)

No reports were given.

160. 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 February 2004 and provided an update to the projected financial outturn for the year. The report also provided an update on two issues in relation to Airwave expenditure.

With regard to police overtime members said in addition to the information on the average paid to officers as currently provided it would be useful if they could receive more information on the actual amounts paid to individual officers which would highlight for example the range of payments

Referring to the section on Income the Chair pointed out that the discussion was largely around issues of reimbursement and it would be useful if this information could be separated from that relating to “pure” income.

The Head of Corporate Finance reported that a response was awaited on the in principle offer of £5M to assist PITO discussed in paragraph 16.

Resolved – That

1. the report be noted; and
2. up to £5M of funding to PITO in respect of Airwave expenditure in return for police capital grant of an equivalent sum in 2004/05 be approved.

161. MPA Efficiency plan 2004/05

(Agenda item 6)

A report was submitted which set out the financial aspects of the MPA’s efficiency plan. The 2004/05 efficiency plan identified potential savings of £53.44 M., which is £6.14 M in excess of the 2% target.

The Treasurer advised that for the first time any excess saving could be carried forward to the next financial year. He hoped to be able to report on the national police services efficiency strategy at the next meeting.

Resolved – That the plan be approved and the process for providing in-year updates be noted.

162. Efficiency and effectiveness review programme

(Agenda item 7)

The report provided an update on progress of the Efficiency and Effectiveness programme. A financial benefits register and end of term report were provided.

Resolved - That the progress of the Efficiency and Effectiveness review programme be noted.

163. Risk management

(Agenda item 8)

A report was submitted which confirmed the MPS Management Board decision to achieve good practice risk management over a period of three years, including priority action to enable the MPA to comply with the internal control and risk management requirements of the Accounts and Audit Regulations, 2003 and ensure that the MPS can meet its statutory requirements under the proposed Civil Contingencies Act. MPA Internal Audit lead on internal control matters and MPS Corporate Risk Management Group (CRMG) on risk management. Partnership working between the two teams will ensure a fully integrated approach. The report makes proposals in relation to the Authority’s role in risk management.

With regard to the recommendation concerning establishing a new Audit and Risk Management Committee the Treasurer reminded the Committee that consideration was being given to a general review of the Committees structure in the Authority and the Committee’s comments on the proposals in this report would be submitted to the Authority as part of this review.

Richard Sumray said that not only did he welcome the specific proposal for addressing risk but felt that the Authority should generally give more consideration to risk aspects of matters before it.

Resolved -That

1. the risk management arrangements agreed by the MPS Management Board be noted and agreed; and
2. that the Authority be asked to agree that a revised Audit and Risk Management Committee should take the MPA’s responsibility for oversight and monitoring of risk management.

164. Police overtime review group

(Agenda item 9)

A report was submitted which set out proposals for the establishment of a member led police overtime group.

The Director of Resources reported that the MPS Senior Management Team had considered the report and wished to amend the suggested terms of reference as set out at appendix 1.

After discussion it was agreed that the following changes be made to the terms of reference.

Section 1 add the words “but uneven” after the word “overall” in the second bullet point to acknowledge that there are some area where there has not been a growth in police officer numbers.

Section 2– add an additional bullet point concerning cases where it is the case that overtime is the most efficient use of resources Section 3 add reference to Specialist Crimes Directorate in the first bullet point

The Treasurer explained that it was intended that if possible the initial meeting of the group would be held in May. Eric Ollerenshaw said the Conservative group on the Assembly would nominate a member to attend the initial meeting and would submit the name of the permanent member after the elections.

Resolved – That

1. A police overtime review group be established;
2. The terms of reference of the group as set out in the Appendix be approved subject to the amendments detailed above; and
3. The membership of the review group be Reshard Auladin, the Home Secretary’s representative on the Authority, a Conservative Assembly member to be nominated following the Assembly elections and the Chairs of Finance and Human Resources Committees ex-officio.

165. Renewal of Special Services Agreement with Palace of Westminster

(Agenda item 10)

This report provides Members with details about the renewal of the special service agreement (SSA) between the Metropolitan Police Authority (MPA) and the Palace of Westminster Authority (POW) in relation to the provision of security services within the Parliamentary Estate. The new agreement will be with effect from 1 May 2004. This report seeks the approval of the MPA for the Clerk to affix the MPA's seal to the agreement.

Commander Loughborough, Chief Supt Greg Roylance and Jonathan Bracken attended for consideration of this item.

The Chair declared a personal interest in the matter.

Sir John Quinton and Rachel Whittaker stated that they had found it very useful to be given the opportunity to see an early draft of the documents and confirmed that the points raised at that discussion had been incorporated into the final version.

Resolved - That

1. the renewal of the special services agreement between the MPA and the Palace of Westminster (POW) be approved;
2. the Clerk be authorised to affix the MPA's seal to the document and to make all other arrangements for its completion, including any minor formatting changes that may be necessary; and
3. it be noted that the Agreement will also need to be approved by POW, and that formal sealing of the Agreement will only take place after such approval has been obtained.

166. Estates Update

(Agenda item 11)

A report was submitted which updated members on the latest information on estate and Property Services matters.

On paragraph 2, the Director of Property Services stated that it had proven possible to submit a report on the disposal of Trenchard House to this meeting and this had been despatched as a supplementary exempt item.

Resolved – that the information on current estate issues be noted.

167 Keyworkers living programme

(Agenda item 12)

A report was submitted which advised the Committee of the terms and conditions of the MPA’s participation in the new Communities Plan, which is to take forward the concept of the Keyhome Buy Scheme and broaden its access criteria. It also makes proposals for funding the MPA’s contribution to the Plan.

Members expressed surprise that Police Community Support Officers were not included in the eligibility criteria and also suggested that consideration be given to imposing a geographical limit on the distance from the property to the place of work – perhaps coterminous with the 70 mile cut-off for free rail travel for police officers.

In reply, the Director of Property Services confirmed that the point about PCSOs had already been pursued unsuccessfully with the Office of the Deputy Prime Minister and undertook to take up the suggestion about a geographical eligibility limit.

Resolved- That

1. participation in the Key Worker Living Programme (successor to the Keyhome Buy Scheme), noting the broader access criteria be endorsed; and
2. approval be given to the earmarking of residential sales (£2m in 2004/05 and £1m in 2005/06) in order to fund the MPA contribution to the scheme.

168. Energy procurement

(Agenda item 13)

A report was submitted which set out the proposal to enter into a contract with gas and electricity suppliers to forward purchase energy directly from the market on behalf of the MPA with consequent tender strategy.

Resolved - That approval be given to -

1. the tendering for a forward energy purchasing contract for the supply of gas and electricity across the MPA estate, commencing 1 January 2005 with an effective date of October 2005. Contract to be for a 5 year duration with option to extend for a further 2 years by mutual agreement;
2. the tendering of interim 12 month contracts for the supply of electricity and gas;
3. the award the electricity contracts on the basis of renewable energy supply, subject only to it being available and affordable within the anticipated budget; and
4. the continued delegation of committal authority to the Clerk to the MPA.

169. Programme for re-tendering the services delivered through the current outsource contracts

(Agenda item 14)

A report was submitted which informed the Committee of the status of programme for re-tendering all those services currently delivered through the existing main outsource contracts and provided summaries of the sourcing and packaging strategies for Pay and Pensions and Transport Services as exempt summaries.

The Committee noted that a report would be submitted to a future meeting on the procurement process.

Resolved – That the status of the programme be noted.

170. Exclusion of Press and Public

(Agenda item 15)

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 and 9 of Schedule 12A to the above Act.

Part 2

Summary of decision made on exempt items

Minute 171 agenda item 16- exempt appendix to agenda item 14
The information was noted.

Minute 172 agenda item 17- routine contracts update
Keyholder Database
Further report to be submitted to next meeting.

Minute 173 agenda item 18 Central London accommodation
No report submitted.

Minute 174 agenda item 19a -Old Street – Rationalisation of interest
Agreed to acquire the GLMCA’s interest in the site on terms outlined in the report.

Minute 175 agenda item 19b –Disposal of Old Street premises
Agreed that discussions be held with the prospective developer.

Minute 176 Keyholder database
Future arrangements for providing the service were agreed

Minute 177 agenda item 21 - exempt minutes of the meeting held on 19 February 2004
The minutes were agreed and signed as a correct record.

Minute 178 Supplementary agenda item 22 – disposal of Trenchard House
Agreed to dispose of this property on the terms outlined in the report

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