Finance Committee Workplan 2004-5

Report: 5
Date: 21 October 2004
By: Clerk and Treasurer

Summary

A draft work plan is provided for consideration by members. It is recognised that this list is not exhaustive and issues will arise during 2004-05 that members will wish to discuss or bring forward for discussion.

A. Recommendation

That, subject to members’ comments, the work plan for 2004-05 be endorsed.

B. Supporting information

1. The work programme of the Finance Committee is determined to some extent by external events, such as the Mayor’s budget timetable, and reports are commissioned to cover specific points set out in its terms of reference. The terms of reference are attached at Appendix 1. Meetings are held every month apart from March and May with an additional meeting to consider the draft budget submission in October.

Reports to be submitted during the year

2. Given the cyclical nature of many budget and financial issues members can expect to see the same themes of reports repeated year on year:

Finance items

Budget process and Medium Term Financial Plan (MTFP)

The budget process for 2005-06 and initial MTFP indications were presented in July. Subsequent meetings of the committee will receive update information on the budget submission. The budget submission timetable and requirements are driven by the Mayor / GLA; for the first time this year an environmental submission is required the oversight of which sits with this committee. Responsibility for the approval of the full proposal, prior to submission to the Mayor, sits with the full Authority. Committee will be updated following the Assembly consideration of the budget (February).

In June 2005 the process for the 2006-07 submission will be outlined.

Budget Monitoring

There will be regular monitoring reports on the capital and revenue budgets. The monitoring reports have been combined for the first time this year to give a full overview of the position. Provisional outturn positions for 2004-05 will be presented at the May committee.

Fees and charges

A report on the annual review of fees and charges will be considered in November.

Financial Management Strategic Plan

A plan for the next four years was presented in September and progress will be reported annually thereafter.

Efficiency plan

As part of their Annual Policing Plan, all police forces and authorities are required to demonstrate efficiency savings currently equivalent to 2% of their annual budget and demonstrate that performance has been maintained or improved. HMIC conducts quarterly inspections to monitor police authorities’ achievement against the plan. The efficiency plan for 2004-05 was presented in April and progress reports will be submitted on a quarterly basis.

From 2005-06 the Authority will be required to produce a three-year efficiency plan with a 3% annual target. The Committee will be asked to approve this plan in April 2005.

Capital Strategy and Programme 2005-10

The draft strategy will be presented in October and forms part of the budget submission to the Mayor. A core element of the strategy is to focus the Authority’s capital planning directly on projects and activities that support the achievement of the Authority’s vision. The effectiveness of the capital strategy will be reviewed annually in the light of changing investment needs and priorities.

Asset Management Plan

This is a new piece of work - linked to the Capital Strategy - that will be presented by April 2005. The plan will detail existing asset management arrangements and outcomes and planned action to improve corporate asset use.

Treasury Management Strategy

The strategy for 2004-05 was presented to committee in February. A six-month monitoring report will be provided in November, with the full year review presented at the May meeting.

Property services items

Omnibus reports on estate issues will be submitted to alternate meetings. Specific reports on, for example, property acquisitions and disposals will be submitted as and when necessary. In February there will be a report on the level of housing rents.

Procurement

There will be progress reports on the routine contracts programme. Reports will be submitted as necessary for the approval of contracts and where there are issues to be resolved.

Insurance

In September the Committee considered the renewal of the insurance premiums.

Information systems and information technology

There will be quarterly progress reports on the Contracts Rolling Programme. Reports relating to the progress of the Outsource Services Programme will be submitted as and when major milestones are achieved or planned. Miscellaneous update / progress reports will be submitted as and when procurement specific tasks are clearly identified and action plans in place that clearly identify a way forward or make recommendations. An update to the Procurement Transformation Plan will be submitted in late 2005.

Miscellaneous reports

Reports will be submitted as necessary on other subjects within the Committee’s remit, for example:

• the ongoing review of police overtime,
• activity based costing (ABC),
• review of special services agreements,
• the cost of public order events,
• grants to external bodies from the Police Property Act Fund.

C. Race and equality impact

There are no direct diversity implications. The authors in each report will properly reflect the diversity implications and the equalities impact of any proposals. There are diversity issues around procurement in that the process must be engaged-in taking account of the duties under the Race Relations Amendment Act and the equalities policies of the MPA/MPS to promote equal opportunities.

D. Financial implications

There are no direct financial implications.

E. Background papers

None

F. Contact details

Report author: John Crompton

For information contact:

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

Appendix 1: Finance committee terms of reference

1. To consider and recommend to the Authority a medium term financial strategy.
2. To consider and recommend to the Authority the annual revenue and capital budgets for submission to the Mayor.
3. To consider and monitor the efficiency and effectiveness review programme.
4. To receive regular monitoring reports from the Treasurer and Commissioner on revenue and capital budget performance.
5. To consider and approve, or recommend to the Authority where the committee considers major policy is involved, major capital programme scheme financial appraisals, justifications and briefs, as required by the Authority’s financial regulations.
6. To consider and award, or recommend to the Authority where the committee considers major policy is involved, major contracts as required by the Authority’s contract regulations.
7. To consider, either directly or by reference from other committees, any policy proposals with significant financial implications or any other non-audit financial matters, and to recommend to the Authority as appropriate.
8. To consider the financial risks to which the Authority is exposed and, within the risk management framework approved by the Corporate Governance Committee, approve measure to reduce or eliminate them or to insure against them.
9. To approve the Authority’s annual Treasury Management policy and strategy, and to receive reports on performance.
10. To consider and determine issues in respect of the MPS estate and other resource issues, such as transport and catering.
11. To consider financial and strategic issues relating to the provision of information systems and information technology.
12. To have due regard, in exercising the committee’s responsibilities, to equal opportunities generally, the general duty of the Race Relations (Amendment) Act 2000 and the requirements of any other equalities legislation.

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