Minutes

Minutes of the meeting of the Finance Committee held on 18 January 2007 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair, in the Chair for agenda items 6 onwards)
• Richard Sumray (Deputy Chair, in the Chair for agenda items 1 to 5)
• Elizabeth Howlett
• Aneeta Prem
• Rachel Whittaker

MPA officers

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

MPS officers

• Sharon Burd, (Acting Director of Resources)
• Simon Hart (Acting Director of Finance Services)
• Karim Mahamdallie (Director of Business Support)
• Adrian Lovegrove (Head Accountant)
• Alan Croney (Director of Property Services)

81. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Reshard Auladin and Bob Neill. An apology for lateness was submitted from Graham Tope.

Pursuant to Standing Orders, in the absence of the Chair at the beginning of the meeting, the Deputy Chair took the Chair for agenda items 1 to 5.

82. Declarations of interests

(Agenda item 2)

There were none.

83. Minutes of the meeting held on 21 December 2006

(Agenda item 3)

Resolved: That the minutes of the meeting held on 21 December 2006 be agreed and signed as a correct record.

84. Revenue and capital budget monitoring 2006/07- period 8

(Agenda item 4)

This report provided an update on the revenue and capital budget monitoring position for 2006/07 at Period 8 (to the end of November). The revenue budget is forecast to overspend by £21.5m (0.7% of budget), which includes £20.6m of estimated additional costs related to Operations Overt/Overamp. The underlying forecast overspend excluding Operations Overt/Overamp is £0.8m (0.03% of budget).

The capital programme as at period 8 shows year to date total expenditure of £91.2m which represents 39.3% of the revised budget. The forecast for the year of £194.6m is £37.3m below the revised budget of £231.9m principally due to the re-phasing of project expenditure into future years.

The Treasurer reported that there continued to be a lack of information on the extent of any additional resources which the Home Office might make available in respect of Operations Overt and Overamp.

Referring to the steps which had been taken to bring actual expenditure in line with the budget by the end of the year Richard Sumray said that it would be useful to know more about how this was being done and the extent to which there was scope for this to be sustained into the new financial year.

Aneeta Prem requested that in future reports on overspend on premises costs (paragraph 28) there be separate figures for the legal and professional fees.

The Committee noted that a report would be submitted to a future meeting on the capital programme. Richard Sumray said that in the context of yet another predicted under-spend he wished to reiterate his request that a report be submitted which would enable the Committee to give proper consideration be given to alternative ways of proceeding in the event of slippage and under-spending such as substitution.

Resolved – That

1. the year to date and forecast position for revenue budgets and the capital programme be noted;
2. approval be given to the carrying forward of £2.5M capital funding relating to the Information and Communications technology element of the Safer neighbourhoods Programme.

85. Annual review of the schedule of fees and charges

(Agenda item 5)

This report sets out information on Metropolitan Police Service (MPS) fees and charges. It also provides details of charges for the special services of police. There is also an explanation in respect of the current status of charging for the detention of prisoners in MPS cell accommodation.

Members commented that the report did not provide sufficient clarity as to the basis on which ACPO made its recommendations and the extent to which they were binding on individual police services. Members also felt that it would not be unreasonable for there to be some uplift in respect of all the charges in London to reflect the general higher costs and overheads.

The Chair suggested that the Committee agree the schedule of charges before them be agreed with the points about methodology which members had been raised being covered in a report to a future meeting.

Resolved – That

1. approval be given to schedule of fees and charges inclusive of charges for the special services of police; and
2. a report be submitted to a future meeting which sets out the background to the methodology used and options for levying charges.

86. Development of the Corporate Business Plan

(Agenda item 6)

A report was submitted which summarised the financial and planning process undertaken for 2007-9 and described the lessons learnt from this exercise. It also set out the longer term vision for business and financial planning.

Richard Sumray referred to the chart at Appendix 1 and said that the last part of the cycle which was described, perhaps not as precisely as it might be, as “Conclude”was the most important. He urged that sight be not lost of the need to align financial planning with business planning, particularly the need to align its resources to deliver on its strategic objectives.

Resolved – That

1. the lessons learnt from this year’s business and financial planning process be noted;
2. the longer term vision be agreed; and
3. the next steps for the 2008/09 planning process be noted.

87. Estates update

(Agenda item 7)

This report updated members on the latest information on Estate and Property Services matters and made recommendations concerning proposed increases in the residential rents.

Referring to the exempt schedules of completed sales a member requested that in order to give the Committee a better understanding of the position, the schedule should include a note of what the monthly targets were.

Members commented that following the adoption of the estate strategy by the Authority at its meeting on 19 December they would now expect the relevant Asset Management Plans to be made available to link members.

The Committee requested that the quarterly reports which were due to be submitted to the Co-ordination and Policing Committee on the Olympic Games include town planning and other estate issues.

Resolved – That

1. the information on current estate issues be noted; and
2. approval be given to the proposed increases in the residential rents levied against those officers who are charged for occupying MPA owned properties on the basis outlined in paragraphs 13 to 15.

88. Exclusion of press and public

(Agenda item 8)

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 paragraph 3 of Schedule 12A to the above Act.

Exempt minutes of the meeting of the Finance Committee held on 18 January 2007

89. Exempt appendices to estates update

(Agenda item 9)

This report contained the exempt information in support of agenda item 7.

Resolved - That the information be noted.

90. Exempt minutes of the meeting held on 21 December 2006

(Agenda item 19)

Resolved – That the exempt minutes of the meeting held on 21 December 2006 be agreed and signed as a correct record.

The meeting closed at 3.17 p.m.

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