Finance Committee workplan 2005-6

Report: 06
Date: 21 July 2005
By: the Chief Executive & 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 2005-06 that members will wish to discuss or bring forward for discussion.

A. Recommendation

That subject to members’ comments, the work plan for 2005-06 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. The budget meeting in October will be a joint meeting with the Planning Performance and Review Committee and will also consider the policing plan.

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)

3. The budget process for 2006/07 and initial MTFP indications are to be presented to this meeting. 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; Responsibility for the approval of the full proposal, prior to submission to the Mayor, sits with the full Authority. The Committee will be updated following the Assembly consideration of the budget (February). The outcome of the government’s review of the formula grant arrangements will be reported.

3. In June 2006 the process for the 2007-08 submission will be outlined.

Budget monitoring

4. There will be regular combined monitoring reports on the capital and revenue budgets. . Provisional outturn positions for 2005-06 will be presented at the June committee.

Fees and charges

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

Financial Management Strategic Programme

6. A plan for the next four years was presented last year and a progress is dud to be submitted to the September meeting.

Efficiency plan

7. 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 2005-06 was presented in February and progress reports will be submitted on a quarterly basis.

Capital Strategy and Programme 2005-10

8. The Programme is to be considered at this meeting. The effectiveness of the capital strategy will be reviewed annually in the light of changing investment needs and priorities.

Asset Management Plan

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

Treasury Management Strategy

10. The strategy for 2005-06 was presented to committee in April. A six-month monitoring report will be provided in November, with the full year review presented at the May meeting.

Property Services items

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

Procurement

12. 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.

13. 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 and major decisions will be required on the retendering of outsourced contracts. An update to the Procurement Transformation Plan will be submitted in late 2005.

Insurance

14. In September the Committee will consider the renewal of the insurance premiums.

Information Systems and Information Technology

15. Reports will be submitted as necessary for the approval of contracts and where there are issues to be resolved.

Miscellaneous reports

16. 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 from this report. 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, MPA.

For more 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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