Minutes

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

Present:

Members:

• Graham Tope (Chair)
• Reshard Auladin
• Richard Barnes
• Elizabeth Howlett
• Rachel Whittaker.
• Tony Arbour
• Len Duvall
• John Roberts also attended for part of the meeting.

MPA staff:

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

MPS staff:

• Deputy Assistant Commissioner Carole Howlett
• Alastair Thompson (Deputy Director of Resources)
• Sharon Burd (Director of Finance)
• Alan Croney (Director of Property Services)
• Ailsa Beaton (Director of Information)
• Steve Atherton (Director of Procurement Services)
• Craig Watkins (Director Business Support (Finance)
• Chief Superintendent Prentice attended for consideration of agenda items 13 and 20.

Part 1

1. Apologies For Absence

(Agenda item 1)

Apologies for absence were submitted on behalf of Bob Neil, Murad Qureshi and Richard Sumray. An apology was also submitted on behalf of the Director of Resources.

2. Declarations Of Interests

(Agenda item 2)

No declarations were made.

3. Minutes Of The Meeting Held On 24 May 2004

(Agenda item 3)

Resolved: That the minutes of the meeting held on 24 May 2004 be agreed and signed as a correct record.

4. Chair And Members’ Update

(Agenda item 4)

No reports were given.

5. Finance Committee Appointments

(Agenda item 5)

A report was submitted which requested the Committee to consider making a number of appointments. It was noted that at the away day for MPA members held on 20 July it had been agreed that the Finance Committee should appoint lead members for IS/IT and estate issues at this meeting.

The Chair reported that as he had known that Murad Qureshi and Richard Sumray would not be able to attend the meeting he had discussed some of the appointments with them. He felt that the Budget group should continue and suggested that it might be appropriate to subsume the work of the police overtime group into the budget group.

Resolved - that

1. Richard Sumray be appointed as Deputy Chair;
2. Richard Sumray be appointed to the APA Finance Lobbying Group (subject to his agreement);
3. the Budget group be merged with the police overtime review group with the membership as follows:

• Graham Tope
• Richard Sumray
• Reshard Auladin
• Elizabeth Howlett
• Murad Qureshi
• Rachel Whittaker

4. Reshard Auladin be appointed as the lead member for IS/IT; and
5. Murad Qureshi be appointed as the lead member for estate issues.
6. Final Revenue Outturn 2003/04

6. Final Revenue Outturn 2003/04

(Agenda item 6)

A report was submitted which provided an analysis of the final 2003/04 revenue outturn position.

Members suggested that more information should be given in the narrative on overspends with a summary being given of what action is being done to address the variance where appropriate. Members also commented that the figures for police overtime were particularly disappointing and that this was clearly an area where further work needed to be done to contain expenditure. It was also the case that members still had not been given a full account of how the overtime budget was compiled or how expenditure is authorised especially when it would mean that this would lead to a budget overspend. Clearly the MPS group and the MPA member level review which was being undertaken would assist, but it might be helpful if the information on overtime budgets contained in future monitoring reports was more detailed so that for example the figures for Specialist Crime, Territorial Policing and Specialist Operations was shown separately.

Resolved - that the final revenue outturn position and the further work to be carried out in 2004/05 be noted.

7. Final Capital Outturn 2003-04

(Agenda item 7)

A report was submitted which provided details of the outturn position for the capital expenditure programme for 2003/04.

Resolved - That

1. the adjusted budget of £181.1 M be approved;
2. approval be given to the carry forward to 2004/05 to support capital projects during 2004/05; and
3. the outturn position for capital expenditure in 2003/04 be noted.

8. Capital Strategy

(Agenda item 8)

A report was submitted which presented the Authority’s draft capital strategy for comment and approval prior to the final draft being submitted to the Committee in October.

In reply to a question from a member, the Treasurer advised that the phrase ‘unsupported borrowing’ was used to reflect the new flexibility under the prudential code.

Resolved - That -

1. the draft capital strategy be approved, (subject to the further work to be undertaken detailed in paragraph 5);
2. the priority allocation criteria at paragraph 6 be endorsed;
3. the progress in developing asset management plans be noted; and
4. an annual programme of reviews of the capital strategy be agreed.

9. Budget Monitoring - Revenue 2004/05

(Agenda item 9)

This report provided an update on the revenue budget as at the end of June. It also updated the Committee on developments to upgrade finance systems and on changes within the structure of the Finance Service.

The Director of Business Support referred to the section of the report dealing with the developments in finance systems, which regrettably had on this initial occasion led to a delay in the production of the monitoring report. This may mean that there was the possibility that some of the figures would need to be amended when further work had been carried out. The Treasurer added that it was hoped that these teething problems would have been fully resolved by the next meeting of the Committee so that more robust figures would be available. The Chair commented that it was clearly important that information presented to the Committee could be relied upon.

Resolved – That the Committee notes the position against the revenue budget as at the end of June and the developments in progress to enhance future reports.

10. 2005/06 Revenue Budget And Medium Term Financial Plan

(Agenda item 10)

Members received a report setting out the Mayor’s budget guidance for 2005/06 and an initial analysis of the Spending Review 2004. The implications for the budget guidance are considered and an approach was suggested for the development of the 2005/06 budget submission

The Treasurer reported that whilst some further information about the Spending Review 2004 had been released since the report was written it was still not possible to gauge with any degree of certainty the final position regarding London. The Treasurer stated that as far as the budget submission was concerned a detailed timetable would be submitted to the next meeting that would incorporate the relevant meetings of the Finance Committee and full Authority. He would suggest that a meeting of the budget group be held in the first half of September.

The Committee felt that in view of the budgetary predictions it would be prudent if the saving target of £60M to be identified by the MPS should be regarded as a minimum requirement.

Resolved - That

1. the Mayor’s budget guidance for 2005/06 and its implications in the light of SR2004 be noted;
2. it be agreed that the 2005/06 budget submission should exemplify four options:

1. Budget in line with the medium term financial projection (MTFP)
2. Precept increase of 9.9%
3. Precept increase of 5%
4. Precept increase of 2.5%.

3. the proposal be endorsed that, in developing the budget submission, a target of at least £60 million savings be pursued;
4. proposals be developed for a process for identifying continuing savings over the next three years be agreed;
5. it be noted that the Step Change programme will be reviewed and options developed for implementation in 2005/06;
6. it be agreed that the Committee oversee the development of the budget and environment submission; and
7. a meeting of the budget group be arranged for the first half of September;

(Note – the budget group was subsequently arranged for 15 September at 3.30 p.m.)

11. Acquisition Of Freehold Office Development- Stratford

(Agenda item 11)

A report was submitted which proposed the acquisition of a freehold development at Stratford to meet the accommodation requirements of the Serious Crime Directorate and alleviate pressure on both Newham and Enfield Borough Operational Command Units.

The Chair commented that the reports on this subject illustrated a point that needed to be addressed – namely that too much information was appearing in the exempt section of the agenda and there were several instances where reports were only appearing in the exempt section. He also commented that he could not see the justification for the revenue implications of the estate reports being exempt.

The Chair said he wished to remind report authors that wherever possible reports should be constructed so that as much information as possible is given in the public section. Wherever possible reports should be constructed so that the decision can be taken in the public section with only brief supporting information appearing in the exempt section.

Resolved – That

1. the Clerk and Director Of Property Services be given delegated authority to negotiate the freehold acquisition of premises in Stratford detailed in the linked exempt report; and
2. estimated expenditure for contract works and professional fees in connection with the fit out works of these premises as set out in the linked exempt report be approved.

12. Acquisition Of Leased Accommodation - Barking And Dagenham

(Agenda item 12)

A report was submitted which proposed the leasing of office space at Barking to address the accommodation requirements of Barking and Dagenham Borough Operational Command Unit.

Resolved- That

1. the acquisition by the Metropolitan Police Authority of leased office accommodation detailed in the linked exempt report, to relieve overcrowding and accommodate expansion within Barking and Dagenham BOCU be approved;
2. expenditure for contract works and professional fees in connection with the fit out works of these premises be approved;
3. subject to the acquisition of the proposed leased accommodation, to support the disposal of a property surplus to requirement; and
4. the capital programme in 2004/05 and 2005/06 be amended as detailed in the linked exempt report.

13. Acquisition Of A New Lease Of Premises For Use By Specialist Operations

(Agenda item 13)

A report was submitted which proposed the acquisition of a lease of premises in southwest London for use by Specialist Operations.

Resolved - That

1. approval be given for the acquisition of leased office accommodation detailed in the linked exempt report; and
2. estimated expenditure for contract works and professional fees in connection with the fit out works of these premises and additional works the MPA are to execute for the landlord be approved.

14. Proposed Sourcing And Packaging Strategy For The Future Provision Of Facilities Management Services

(Agenda item 14)

A report was submitted which sought the Committee’s approval of the sourcing and packaging strategy for the re-tendering of the Facilities Management (FM) services strategy together with approval to issue OJEU notices to commence procurement action, including selection of contractors to proceed to invitation to negotiate and to agree interim arrangements to ensure the safe and effective transition to the new service providers.

Resolved – the strategy and subsequent procurement procedures detailed in the linked exempt report be approved.

15. Extension Of Existing Information And Communications Technology Outsourced Contracts

(Agenda item 15)

A report was submitted which advised that the negotiations had been completed with the current ICT outsourcing suppliers. It sought approval to implement extensions to the contracts for Information Systems, telephony, Crime Report Information Systems, telephony and Command and Control to allow a smooth transition to the new ICT core service supplier by April 2006.

Reshard Auladin reported that he had received update reports.

Resolved –That approval be given to

1. an extension to the Atos Origin contract of up to 18 months (from 1 November 2004 to 30 April 2006) in accordance with the negotiated changes summarised in the exempt Appendix;
2. an extension to the Damovo contract of up to 18 months (from 9 August 2004 to 8 January 2006) in accordance with the negotiated changes summarised in the exempt Appendix;
3. an extension to the EDS contract of up to 3 years with breakpoints (from 1 January 2005 to 31 December 2007) in accordance with the negotiated changes summarised in the exempt Appendix;
4. an extension to the NTL contract of up to 3 years (from 20 October 2004 to 19 October 2007) in accordance with the negotiated changes summarised in the exempt Appendix; and
5. an extension to the Unisys contract of up to 3 years (from 4 October 2004 to 3 October 2007) in accordance with the negotiated changes summarised in exempt Appendix 2.

16. Approval To Issue Invitation To Negotiate Documentation For The Retendering Of Ict Core Services

(Agenda item 16)

A report was submitted which informed the Committee of the current status of the re-tendering activity for the ICT core service supplier and sought the Committee’s approval to issue the 'Invitation to Negotiate' (ITN) documentation to a qualified short-list of bidders.

Resolved –That the ‘Invitation to Negotiate’ (ITN) documentation for the procurement of ICT core services to a qualified shortlist of bidders.

17. Exclusion Of Press And Public

(Agenda item 17)

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 decision made on exempt items

Minute 18 agenda item 18 - Acquisition of freehold office development- Stratford
Recommendations relating to the acquisition of premises were adopted.

Minute 19 agenda item 19 - Acquisition of leased accommodation - Barking and Dagenham
Recommendations relating to the acquisition of premises were adopted.

Minute 20 agenda item 20 - Acquisition of a new lease of premises for use by Specialist Operations
Recommendations relating to the acquisition of premises were adopted.

Minute 21 agenda item 21 – Bow Street Police Station- Sale of freehold interest
Update noted. Further report to be submitted to October meeting

Minute 22 agenda item 22 - Proposed sourcing and packaging strategy for the future provision of facilities management services
The strategy and subsequent procurement procedures were approved.

Minute 23 agenda item 23 - Extension of existing information and communications technology outsourced contracts
Extensions to the contracts were approved.

Minute 24 agenda item 24 - Approval to issue invitation to negotiate documentation for the retendering of ICT core services
The report was noted.

Minute 25 agenda item 25 - programme for retendering the services delivered through the current outsource contracts
The information was noted.

Minute 26 agenda item 26 - the future provision of the current outsourced contracts strategic approach principles and aims
The report was noted.

Minute 27 agenda item 27 - Routine Contracts Programme
Latest version of the programme noted.

Minute 28 agenda item 28 - Provision of a secure integrated communication platform (Sky 1)
Position on expenditure noted.

Minute 29 agenda item 29 - exempt minutes of the meeting held on 24 May 2004
The minutes were agreed and signed as a correct record.

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