Finance Service Restructure

Report: 10
Date: 24 May 2004
By: Commissioner

Summary

This report outlines the pressures that have led to a review of the staffing structure of the Finance Service and sets out the revised structure that has been drawn up. There is a vacancy for a Head of Business Support. This is a post in which there should be Member representation in the recruitment process and the Committee is invited to nominate a Member to undertake this role.

A. Recommendation

1. That Members note the revised structure of the Finance Service.
2. That a member be nominated to participate in the recruitment process for the Head of Business Support.

B. Supporting information

1. The basic structure of the Finance Service as currently operated, was established in 2001 following approval by the MPA to a significant strengthening of the resources applied to the Finance functions. As additional staff have been recruited, the service has developed and there has been a considerable improvement in the Finance function compared to that in operation at the inception of the MPA. This has been reflected in the Financial Management Strategic Improvement Programme reported on by the Treasurer.

2. At the same time, the MPS itself has experienced and continues to undergo a substantial programme of change that requires support from the Finance Service. A number of pressures have become evident in this process and a review has been undertaken to consider whether the structure of the Finance Service meets current requirements.

3. Whilst the overall service provided has improved, the following issues have been identified that need to be addressed:

• Workload pressures on the Head of Corporate Finance and Head of Business Support
• Enhancing focus on in-year budget monitoring and forecasting
• Strengthening Financial Planning and its links with the MPS Corporate Planning processes
• Implementation of the CIPFA Prudential Code for Capital expenditure
• Support for major programmes such as Step Change
• Reflecting growing needs of SO and SC business groups for financial support
• Ongoing development of MetFin and related IT systems
• Increasing attention needed for staff training and career development
• Improving the application of Business Planning and general management processes in Finance

4. In response to these issues, a revised structure has been drawn up and is attached as Appendix 1. The principal elements of the revised structure are as follows.

5. The number of Heads of Service reporting to the Director of Finance has been increased from three to four. The span of activity within Corporate Finance has been reduced and the service area re-designated Strategic Finance to focus on Financial Planning and the Financial Accounts.

6. The resources applied to Financial Planning have been increased, mainly by a transfer of resources from the former Projects Team. The Finance support to major projects will be provided by this team and it will also oversee the production of business cases and Option Appraisals to meet the requirements of the Prudential Code.

7. Responsibility for budget monitoring is transferred to from Corporate Finance to Business Support to improve the accountability of the business groups in reporting budget progress and explaining forecast variations.

8. A functional area reporting to a Head of Service is established to deal with Finance business development. This will take responsibility for oversight of the Finance input to IT systems development, focussed primarily on MetFin and related systems.

9. It will also deal with business planning in Finance, career development of Finance staff and Financial Awareness Training throughout the MPS. The Head of Service will act on behalf of the Director of Resources as Head of Profession for Finance and Resource Managers.

10. In response to the increasing workload and complexity of the SO and SC Business Groups, separate business support teams reporting to a Lead Accountant have been established for each of these Business Groups.

11. The restructuring has been undertaken in consultation with staff, the Trades Unions and views from the Treasurer and senior MPS management. A process of assimilation of staff into the new structure was agreed with the Trades Unions and this has been applied. Two early retirements are being progressed at this stage.

12. The current Head of Business Support will be assimilated into the new structure as Head of Finance Business Development. This reflects the significant overlap with his current duties. The post of Head of Business Support will therefore be vacant in the new structure. This is an appointment in which there should be member representation in the recruitment process.

C. Race and Equality impact

The implementation of the revised structure has no direct implications for equalities or race relations. Within the new structure there is enhanced provision for staff management and career development, which should have a positive impact on equalities issues.

D. Financial implications

There is a net increase in the planned establishment in the new structure that will increase costs overall. These costs will be met by management of the vacancy factor and allocation of the resources related to the specific growth areas. No additional budget is sought for the restructure.

E. Background papers

None

F. Contact details

Report author: Sharon Burd, MPS.

For more information contact:

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

Send an e-mail linking to this page

Feedback