Minutes - draft

Please note these minutes are currently draft and are subject to committee approval.

Minutes of the meeting of the Finance Committee held on 23 June 2005 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair)
• Richard Sumray (Deputy Chair)
• Reshard Auladin
• Richard Barnes (up to agenda item 18 )
• Elizabeth Howlett
• Murad Qureshi (not present for agenda items 1-5, 8 and 9)
• Rachel Whittaker

MPA officers

• Catherine Crawford (Chief Executive and Clerk)
• David Riddle (Deputy Chief Executive and Clerk)
• Ken Hunt (Treasurer)
• John Crompton (Committee Services)

MPS officers

• Deputy Assistant Commissioner Richard Bryan
• Keith Luck (Director of Resources)
• Sharon Burd (Director of Finance)
• Craig Watkins (Director of Business Development)
• Simon Hart (Director of Business Support)
• Ailsa Beaton (Director of Information)
• Alan Croney (Director of Property Services)
• Alastair Thompson (Director of Logistical Services)
• Anthony Doyle (Acting Head of Procurement Services)
• Assistant Commissioner Stephen House attended for consideration of agenda items 6 and 7

158. Apologies for absence

(Agenda item 1)

An apology for absence were received from Bob Neill.

159. Declarations of interests

(Agenda item 2)

There were none.

160. Minutes of the meeting held on 7 April 2005

(Agenda item 3)

Resolved: That the minutes of the meeting held on 7 April 2005 be agreed and signed as a correct record.

161. Chair and Members’ update – oral report

(Agenda item 4)

No reports were given

162. Annual Report of the Finance Committee

(Agenda item 5)

A report was submitted which summarised the work of the Committee for the year 2004/05.

Resolved –That the annual report be agreed as representing the Committee’s work over the last year for submission to the Authority.

163. Revenue and capital budget monitoring 2005/06

(Agenda item 6)

A report was submitted which set out performance against the revenue budget as at the end of May.

Resolved - That the report be noted.

164. Revenue outturn 2004/05

(Agenda item 7)

This report provides the provisional outturn position against the revenue budget for 2004-05. The expectation is for a year-end underspend of £11.8m. At present, this figure excludes accrual of income due to the Authority in respect of the work undertaken relating to the S.E. Asia Tsunami.

Also included is the provisional outturn against the capital budget for 2004-05. The expected outturn for the year at £152.0m is £65.8m below budget.

A letter dated 21 June from the Commissioner to the Chair of the Authority was tabled.

Assistant Commissioner Stephen House attended for consideration of this item and said that having discussed the matter with Assistant Commissioner Ghaffur he had to advise that without these monies for tasking performance in areas such as gun crime would suffer. This had proven to be the case at the end of the last financial year when there were not the resources to carry out as many targeted operations as had been hoped.

The Treasurer said that his advice was that on the assumption that a payment in the order of £14M was to be received in respect of the reimbursement of Operation Bracknell costs the true figure for the underspend was approximately £25M and taking this in conjunction with the general reserve in hand would allow prudent reserves to be available when members considered forecast for the 2005/06 revenue budget outturn later in the year. On this basis, it would be prudent, if members wished, to agree the expenditure of the £4m in respect of tasking.

Members stressed the need to consider bids against the underspend in a prioritised format identifying benefits realisation.

The Chair suggested that consideration of the other items at paragraph 8 be deferred, but the monies be earmarked in the MPA’s reserves pending future business cases to the Committee.

Resolved - That

1. the provisional outturn position against the revenue and capital budgets for the year be noted and that the figures may change as account closure continues;
2. £4 M of the net underspend be used for the MPS tasking process on the basis that this be a one off cost in this year and that the Service Review should find the monies for future years;
3. the Committee received regular updates on the expenditure of the 4m; and
4. no decision be taken as this stage with regard to the request from the Mayor to contribute to the cost of anti viral drugs for MPS/MPA staff against Avian flu and a briefing note on the subject be circulated.

165. Treasury Management Financial Review 2004/05

(Agenda item 8)

This report set out the Annual Review of Treasury Management for 2004/05.

Resolved That the annual review of the treasury management function be noted.

166. Efficiency Plan Monitoring -2004/05 – 4th Quarter

(Agenda item 9)

A report was submitted which set out the provisional outturn position against the efficiency plan as at the end of the fourth quarter.

Resolved - That the position be noted.

167. Police Pensions Consultation

(Agenda item 10)

A Home Office led working group, has now reported with proposals on how a new system of financing police pensions should be implemented. It is proposing that employer and employee contributions together would meet the full costs of pension liabilities being accrued in respect of current employees while Central Government would meet the costs of paying the pensions of retired officers, net of employee and the new employer contributions. The Authority’s response to the proposals was agreed at the Budget and Overtime Group on 10 June and was reported for information.

In reply to questions the Treasurer advised that the position would appear to be that very few police authorities found themselves to be in the same position as the MPA.

At the suggestion of a member it was agreed that the response sent be copied to the APA and PNB.

Resolved - That the response to the consultation paper be noted.

168. Estate update

(Agenda item 11)

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

The Committee urged the officer to keep a watching brief on Crossrail so that any changes to the route could be assessed.

The Committee agreed to receive a presentation on the residential estate strategy immediately following the meeting but disappointment was expressed that there was not a written report.

Resolved - That the information on current estate issues be noted

169. MPS Compliance with the National Information Strategy

(Agenda item 12)

A report was received that provided a statement of the MPS compliance with the National Strategy for Police Information Systems (NSS4PS) – Version 3.0. The strategy is developed in the form of a policy framework. It contains 14 policies, which police authorities, and chief constables will be required to comply with. In general terms the MPS is well placed to comply with the ISS4PS in most areas. Two policies, concerning standardisation of business process, and the provision of a “standard level of policing” the UK, will need further work by policy makers before the MPS can assess the implementations

Resolved- That the report be noted and the MPS work within the policy framework where it is reasonable to do so and challenge these policies where compliance would be problematic.

170. Benefits Realisation in the MPS Information Strategy

(Agenda item 13)

Members considered a report on the MPS policy and processes for ensuring that benefits forecast in Information and Communications Technology (ICT) enabled business change solutions are effectively updated, scrutinised, tracked and evaluated.

It also reports on the adherence by projects to the policy and processes as examined by the Audit and Benefits Realisation Sub-Group (ABRSG) in March 2005.

Members strongly commended the approach set out in the report.

Resolved – That Members note the current position concerning benefits realisation policies and processes in the MPS and the current progress towards realising benefits in projects scrutinised by the ABRSG in March 2005.

171. Crimint Plus Project – contract award approval

(Agenda item 14)

This report outlined the financial requirements for the provision of the software licences and services required to implement the proposed Crimint Plus system.

Resolved That a contract be awarded as recommended in the exempt Appendix 1.

172. Acquisition of a second site for vehicle examination and forensic analysis

(Agenda item 15)

This report sought Member’s approval to expand the Metropolitan Police Service (MPS) Vehicle Recovery and Examination Service (VRES) through the acquisition of a second site and to co-locate the Specialist Crime Directorate (SCD) forensic vehicle examination function at this site.

Resolved - That approval be given to

1. The acquisition of a leasehold interest at a site in north west London to facilitate the expansion of the in-house Vehicle Recovery and Examination Service;
2. Capital expenditure for the contract works as set out in the exempt Appendix; and
3. The disposal of the MPA’s interest in a site in south west London, to generate receipts as set out in the exempt Appendix.

173. Exclusion of press and public

(Agenda item 16)

Resolved - That under section 100A(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.

Summary of decisions made on exempt items

Minute 174 agenda item 17 exempt Appendix to Crimint Plus Project – contract award approval
Agreed to enter into a contract.

Minute 175 agenda item 18 exempt appendix to acquisition of a second site for vehicle examination and forensic analysis
The information was noted.

Minute 176 agenda item 19 outsource services programme
The report was noted.

Minute 177 agenda item 20 - exempt minutes of the meeting held on 7 April 2005
The minutes were agreed and signed as a correct record.

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