Minutes

Minutes of the meeting of the Finance Committee held on 23 September 2004 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair)
• Reshard Auladin
• Richard Barnes
• Elizabeth Howlett
• Murad Qureshi
• Rachel Whittaker

MPA officers

• Peter Martin (Treasurer)
• John Crompton (Committee Services)

MPS officers

• Assistant Commissioner Tarique Ghaffur (up to agenda item 6)
• Deputy Assistant Commissioner Richard Bryan
• Commander Michael Messinger (Territorial Policing HQ)
• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance)
• Alan Croney (Director of Property Services)
• Steve Atherton (Director of Procurement Services)
• Stuart Middleton (Director of Transport Services)
• Craig Watkins (Director Business Support (Finance)
• Helen Dean (Directorate of Strategic Development) attended for consideration of agenda item 8
• Chief Superintendent Mark Gore and Ian Adams attended for consideration of agenda item 29.

Part 1

30. Apologies for absence

(Agenda item 1)

An apology for absence was submitted on behalf of Bob Neill.

31. Declarations of interests

(Agenda item 2)

No declarations were made.

32. Minutes of the meeting held on 22 July 2004

(Agenda item 3)

Resolved: That the minutes of the meeting held on 22 July 2004 be agreed and signed as a correct record.

33. Chair and members’ update

(Agenda item 4)

Members commented that a large number of reports had been sent to them after the main agenda despatch. The Chair said he had recently raised his own concerns at this practice and it was hoped that there would be an improvement.

34. Lead members roles

(Agenda item 5)

A report was submitted which requested the Committee to review and appoint any additional lead member positions.

The Chair reminded the Committee that at the last meeting lead members had been identified for IS/IT and estate matters. Members considered that the lead members be restricted to the two roles which had already been identified.

Resolved - that no further lead members be nominated.

35. Revenue and capital budget monitoring - 2004/05

(Agenda item 6)

A report was submitted which provided an update on the performance against the revenue budget as at the end of August. The overall year to date position on the revenue budget is an underspend against budget of £2.6 M. and a forecast overspend at year-end of £3.M. Expenditure on capital to date totals £37.2M. which is 17% of the approved annual budget. The report also sought permission to a virement.

Assistant Commissioner Ghaffur attended for consideration of this item and spoke in support of the virement to the Serious Crime Directorate.

Resolved – That

1. the position of the latest revenue and capital forecasts for the year and developments in progress to enhance future reports;
2. a reduction of £33.2m in the capital budget for 2004/05 due to an adjusted payment profile for the supply of the Integrated Communications Platform within the C3i Programme (£28.7m), and delays in the Step Change Programme (£4.5m) (see paragraph 26) be approved; and
3. approval be given to the virement of £6.0m from centrally held inflation budgets to Serious Crime Directorate comprising Police Staff Pay (£4.5m), Supplies & Services (£1.0m) and Transport (£0.5m).

36. Financial management strategic programme

(Agenda item 7)

A report was submitted which presented the financial management strategic programme to secure continuing improvement in financial management in the MPS.

Resolved – That the new financial management strategic programme be endorsed.

37. Activity based costing

(Agenda item 8)

A report was received which updated the Committee on progress in implementing Activity Based Costing in the MPS

Resolved - That the report be noted.

38. Efficiency plan

(Agenda item 9)

This report set out the forecast position against the MPS’s efficiency plan at the end of the first quarter. It also provided details of the final assessment of the 2003/04 efficiency plan that confirmed that the MPS met its performance assessment.

Resolved – That the position against the efficiency plan be noted.

39. Medium term financial plan and 2005/06 budget submission – progress report

(Agenda item 10)

Members received a report that set out the current position on the development of the medium term financial plan and preparation of the budget submission for 2005/06 to the Mayor. It also contained details of a bid to the Home Office for Community Support officers.

Resolved - That

1. the report be noted; and
2. the bid to the Home Office for Community Support officers be supported.

40. Insurance and liability provision

(Agenda item 11)

A report was submitted which described the insurance renewal programme for 2004/05. The report also proposed that the Treasurer be given delegated authority to deal with some outstanding matters and proposed a limited extension to the scope of the Authority’s general indemnity provision for named Volunteer Forensic accountants.

Resolved – That

1. the insurance renewal proposals be operative from 1 October 2004;
2. the proposed approach to outstanding insurance matters (paragraph 1a to 1e in the exempt appendix);
3. the Treasurer be given delegated authority to finalise arrangements for outstanding insurance matters;
4. four named ‘Volunteer Forensic Accountants’ are added to the Authority’s general indemnity in respect of professional liability, subject to the Deputy Clerk agreeing a suitable amendment; and
5. subject to the agreement of the Clerk and Treasurer, future ‘named’ specialist volunteers using their professional skills to aid the MPS in an agreed capacity be added to the Authority’s general indemnity arrangements.

41. Estate updates

(Agenda item 12)

A report was submitted which updated the Committees on the latest information on estate and Property Services matters. It also sought to delegate approval of disposals under the South East London Public Finance Initiative to the Clerk and Director of Property Services (jointly) even if above current delegated limits.

With regard to the marketing of Bow Street police station and magistrates court the Director of Property Services said that the marketing of Bow Street police station and magistrates court was proceeding and there was nothing further to be reported at exempt agenda item 28.

Resolved- That -

1. the information on current estate issues be noted;
2. approval be given to the Clerk and Director of Property Services the approval of disposals under the South East London Public Finance Initiative subject to the business case figure being achieved as well as “best consideration that can reasonably be obtained” with a valuation certificate to support this.

42. Acquisition of a south west base for the Transport Operational Command Unit

(Agenda item 13)

A report was submitted which proposed the acquisition of a lease of premises to provide the new south west London base for the Transport Operational Command Unit.

Resolved - That

1. Members approve the acquisition by the Metropolitan Police Authority of leased office accommodation, to provide a south west London base for the Transport Operational Command Unit (Transport OCU) on the terms e provided in the exempt Appendix 1; and
2. the capital programme be amended and £190,000 be charged to capital account in 2004/05 and finance from additional capital receipts/landlord's contribution.

43. Old Lewisham/Ladywell police station-approval of sale

(Agenda item 14)

A report was submitted which sought approval to of the sale of the MPA’s interest in this redundant building.

Resolved – to agree the unconditional sale of the MPA’s interest in Old Lewisham police station 2 Ladywell Road, Lewisham to the highest bidder as shown in exempt Appendix 1.

44. Renaming of premises – the former West Hendon Police Station

(Agenda item 15)

The former police station is being refurbished and upgraded to accommodate the Trident North Operational Command Unit and others. A report was considered which asked members to endorse the renaming of these premises in memory of a police officer who died in service.

On a related point, the Director of Property Services advised that a report would be submitted to a future meeting concerning the naming of other buildings such as Empress State Building and said there had been some preliminary discussion with MPA officers.

Resolved –That the former police station at West Hendon, Edgware Road be renamed ‘Julian Headon House’

45. Delegated powers and contract arrangements for safer neighbourhoods

(Agenda item 16)

No report was submitted as the item had been withdrawn following the agenda despatch.

46. Delegated powers and contract arrangements for integrated borough operation rooms

(Agenda item 17)

No report was submitted as the item had been withdrawn following the agenda despatch.

47. Retendering of transport services outsourced contracts

(Agenda item 18)

A report was submitted which informed the Committee of the current status of the re-tendering activity for outsourced transport services and sought the Committee’s approval to issue the Invitation to Negotiate documentation.

Resolved - that approval be given to the issue of the Invitation to Negotiate for the re-tendering of transport services outsourced contracts to a qualified short-list of bidders.

48. Replacement of helicopters

(Agenda item 19)

A report was submitted which sought authority to purchase three helicopters to replace the existing machines introduced into service between 1993 and 1996. The current helicopters are becoming less reliable and providing less availability than at any time since their purchase. The Air Support Unit is increasingly expected to be capable of conducting an ever-widening spectrum of tasks in support of territorial policing, public order and counter terrorist incidents,

Commander Messinger spoke in support of the bid and outlined the operational case for the helicopter fleet to be replaced. He also advised that the proposed replacements would be quieter than the current helicopters. The Committee noted that an earlier arrangement whereby one of the helicopters was shared with another police force had terminated.

Resolved - That

1. approval be given to the commencement of the aircraft replacement programme, and subject to guaranteed Home Office funding, incorporate £5.8m in 2005/6 and £2.8m for 2006/7 within the capital programme, to purchase two helicopters in financial year 2005/6 and a further helicopter in financial year 2006/7 subject to consideration of this item as part of the normal budgetary process;
2. up to 40% capital funding from the Home Office be sought to support the purchase of three helicopters over two financial years;
3. should Home Office grant not be awarded, the funding and timing of the aircraft replacement programme will be reconsidered;
4. the MPS consider how to mitigate and reduce revenue costs in order to limit the impact on the Medium Term Financial Plan; and
5. it be agreed that the business case be submitted to the Home Office.

49. Exclusion of press and public

(Agenda item 20)

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 50 agenda item 21 – exempt Appendix to insurance and liability provision
The information was noted.

Minute 51 agenda item 22 – exempt Appendix to estate update
The information was noted.

Minute 52 agenda item 23 – exempt Appendix to acquisition of a south west base for the Transport Operational Command Unit
The information was noted.

Minute 53 Agenda item 24 - exempt appendix to Old Lewisham/Ladywell police station-approval of sale
The information was noted.

Minute 54 agenda item 25 - exempt Appendix to retendering of transport services outsourced contracts
The information was noted.

Minute 55 agenda item 26 – exempt Appendix to purchase of MPS helicopters
The information was noted.

Minute 56 agenda item 27 - Disposal of Old Street police station to Community Courthouse Project
The information was noted.

Minute 57 agenda item 28 – Bow Street disposal.
No report given

Minute 58 agenda item 29 – Keyholder database
Recommendations relating to the future provision of the keyholder service were adopted.

Minute 59 agenda item 30 - exempt minutes of the meeting held on 22 July 2004
The minutes were agreed and signed as a correct record.

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