Minutes

Minutes of the meeting of the Finance Committee held on 20 April 2006 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope, (Chair)
• Richard Sumray (Deputy Chair)
• Reshard Auladin
• Richard Barnes
• Elizabeth Howlett
• Aneeta Prem

MPA officers

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

MPS officers

• Keith Luck (Director of Resources)
• Sharon Burd, (Director of Finance)
• Simon Hart (Director of Business Support)
• Diana Marchant (Director for Business Development Territorial Policing)
• Paul Daly (Director of Exchequer Services)
• Alan Croney (Director of Property Services)
• Stuart Middleton (Director of Transport Services)
• Anthony Doyle (Director of Procurement) attended for consideration of agenda item 15

115. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Bob Neill and Rachel Whittaker. The Chair welcomed Aneeta Prem to her first meeting of the Finance Committee.

116. Declarations of interests

(Agenda item 2)

There were none.

117. Minutes of the meeting held on 16 February 2006

(Agenda item 3)

Resolved - That the minutes of the meeting held on 16 February 2006 be agreed and signed as a correct record

118. Revenue and capital budget monitoring 2005/06- period 11

(Agenda item 4)

The report provided an update on the revenue and capital budget monitoring position for 2005/06 at period 11 (to the end of February). The revenue budget is forecast to underspend by £12.7m (0.5% of budget). The expenditure to-date for the capital programme as at period 11 (February) is £181.9m, which is 63.2% of the revised budget of £287.7m. Some adjustments to certain projects within the Capital Programme are submitted for approval.

Resolved – That

1. the year to date and forecast position for revenue budgets and the capital programme be noted; and
2. the amendments to the capital programme as set out in paragraph 40 be approved.

119. Police Property Act Fund

(Agenda item 5)

A report was submitted on the Police Property Act Fund (PPAF) which provided a summary of the 2004-5 annual accounts; the position of the 2005-06 grant budget at 20 March 2006 and proposals for the allocation of the 2006-07 grant budget.

The Director of Exchequer Services advised that since the report was written a further £45,000 of these monies had been spent.

The Committee sought clarification on the statement that the MPS will not make “recurring grants or commitments to future years” as Boroughs had sought clarification on this point particularly where the number of appropriate groups in a borough is limited. Members accepted the suggestion that the guidance should read:

“to ensure a varied distribution of awards the MPS will not usually pay a grant to an organisation for more than two consecutive years but recognises there may be occasions when appropriate opportunities are limited. In circumstances where a borough has difficulty in making varied awards the carry over of the allowance to the next financial year, or a further award to an organisation that has already received an award for two consecutive years, will be allowed but subject to approval by the Finance Committee. Neither shall the MPS make a future commitment of an award to an organisation.”

The Chair said that although it had been instructive for alternative proposals for the allocation of the budget in future years to be provided, there did not seem to be a compelling reason to change from the present formula. He would therefore suggest that there be no change to the basis of the allocation of the 2006-07 grants budget.

Resolved – That

1. the report on the 2004-05 annual accounts for the Police Property Act Fund be noted;
2. the position of the grants budget at 20 March 2006, as amended at the meeting and the clarification regarding the process for the paying of grants for more than two years be noted; and
3. the allocation of the 2006-07 grants budget continue to be on the basis of the revised PPAF formula.

120. Treasury Management and Investment Strategy 2006/07

(Agenda item 6)

A report was submitted which set out the Treasury Management and Investment Strategy 2006/07.

Resolved – That the Treasury Management and Investment Strategy for 2006/07 be approved.

121. Revised Financial Planning Framework

(Agenda item 7)

A report was submitted which sets out a summary of the proposals for a revised financial planning framework to improve integration with strategic planning, ensure improved financial planning and budgeting for 2006/07 and future years, moving away from an annual bidding round and flagging up the financial challenges much sooner and over a three year time frame.

The Director of Resources advised that it was intended that members would have an opportunity to discuss the framework at a joint MPA/MPS away day.

Richard Sumray said that he would make reference to this report at the next meeting of the Planning Performance and Review Committee on 24 May, as there would not be time for a revised report to be prepared in time for the meeting. He would suggest that a revised report which contained more details of the planning aspects – three year plan, target setting and any reference to Activity Based Costing etc be submitted to the Strategy and Policing Committee on 11 May. It would then be referred on to the Planning Performance and Review Committee on 8 June.

The Treasurer reported that the Executive Director Finance and Performance at the GLA had made some initial comments on the document. This covered: the need for more emphasis on the importance of Mayoral guidance and strategies, some comments on the budget timetable and the need to indicate how the Modernisation Programme will feed into the programme.

The Committee generally welcomed the revised framework which was seen as an important step towards a more effective way of working and would provide the opportunity for members to be more actively involved in the budget process by, for example, allowing time to consider the growth bids.

In summing up the discussion the Chair said that the Committee welcomed the revised framework which was seen as an important step towards a more effective way of working and would provide the opportunity for members to be more actively involved in the budget process by, for example, allowing time to consider the growth bids. The timetable in the first year was ambitious but it was important that it be adhered to as much as possible.

Resolved – That

1. the outline proposals for a revised financial planning framework as set out in the report be welcomed; and
2. a revised version of the report be submitted to the Strategy and Policing Committee and then to the to the Planning Performance and Review Committee with any observations the committee may wish to make.

122. Proposal to create a Central London Training Delivery Centre

(Agenda item 8)

A report was submitted which set out the proposal for the formation of a single point of training delivery in central London. This proposal represents a value for money, short-term solution that will help the training estate overcome immediate accommodation problems, and will enable the timely delivery of the training required for the current priority change programmes for Territorial Policing.

It was noted that Rachel Whittaker had indicated that she was content with the general thrust of the recommendations.

Members asked several questions about alternative solutions. In reply the Director of Property Services confirmed that there was no suitable accommodation at Hendon and the option of using other facilities, such as redundant schools, was not practicable in view of the high fit-out costs especially for the IT requirements. The Director for Business Development TP confirmed that the possibility of finding a joint solution had been explored with Transport for London and the London Fire and Emergency Planning Authority but neither had any accommodation available on the scale required. The Committee was also advised that it was not part of the business model for the Empress State Building that floors be converted for training purposes particularly bearing in mind the current open plan layout and the considerable additional capital costs which would be required.

In reply to a question from Reshard Auladin on how the proposal related to the Estates Strategy and the Modernisation Programme the Director of Property Services said it was acknowledged that the way in which training was delivered was subject to possible change but because of pressing training requirements there was a business need for a solution to be in place by September. The suggested solution was based on best value principles and avoided the use of expensive ad-hoc solutions but would provide flexibility as it involved renting serviced accommodation.

Resolved – That

1. Authority be given to the formation of the Central London Training Centre and for a contract to be signed for the provision of the Centre.
2. The Finance Committee delegates authority to the Chief Executive and Clerk of the Authority and the Director of Property Services to finalise occupational terms with the Serviced Office Provider.

(Note- this decision was called in for further consideration at the Authority meeting on 27 April 2006, which meant that no further action was undertaken to implement the decision in the interim period. The Authority upheld the decisions of the Finance Committee)

123. Estates update

(Agenda item 9)

A report was submitted which provided an update for members on estate and property services matters.

Acquisitions and sales

Aneeta Prem, the portfolio member for estates, said it was important that the relevant MPA link member was advised of property disposals or acquisitions in their borough.

Members also stressed the need for a comprehensive consultation/information strategy on estate issues and particular around the disposal of police stations. In addition to Property Services would need to involve other parts of the MPS such as the Directorate of Public Affairs. There was a lot of public interest and concern on the disposal of police stations and it was therefore important that a thorough and proactive strategy was in place.

The Chief Executive advised that the Chair of the Authority intended to raise this issue with the Commissioner.

Resolved – That the information on current estate issues be noted.

124. Approval to issue the Invitation to Tender for the Property Services Facilities Management Service Contracts

(Agenda item 10)

A report was submitted which informed members of the current status of the tendering activity for the outsourced Property Services Facilities Management Service (FMS) Contracts (and seeks members’ approval to issue the Invitation to Tender (ITT) documentation to a qualified list of bidders.) The report also sought authority to extend the existing incumbent FMS contracts with Interserve and Babcock for an additional 4 months to cover the period between December 2006 and the new contract start date during April 2007. This extension is essential to ensure FM service continuity during the new contract transition period.

Resolved – That

1. approval be given to the issue of the Invitation to Tender (ITT) for the re-tendering of Property Services Facilities Management Service (FMS) Contracts to the qualified list of bidders detailed in exempt Appendix 2; and
2. approval be given to the extension of existing FMS contracts with Interserve and Babcock to ensure continuity of service until the new FMS contracts commencement in April 2007

125. Exclusion of press and public

(Agenda item 15)

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 8 and 9 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

Minute 126 agenda item 12 exempt appendices to estates update
The information was noted.

Minute 127 agenda item 13 – exempt Appendix to Routine Contracts Programme
The information was noted.

Minute 128 agenda item 14 – Central London estate strategy
A report was submitted which provided an update on the progress that has been made in delivering the Central London Estate strategy as at 31 January 2006. The report was noted.

Minute 129 agenda item 15 – New transport contract
A report containing information relating to the new contractor was noted.

Minute 130 agenda item 16 - exempt minutes of the meeting held on 16 February 2006
Agreed and signed as a correct record.

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