Minutes

Minutes of the meeting of the Finance Committee held on 15 February 2007 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair, in the Chair for agenda items 4 onwards)
• Richard Sumray (Deputy Chair, in the Chair for agenda items 1 to 3)
• Richard Barnes
• Elizabeth Howlett
• Bob Neill
• Aneeta Prem
• Rachel Whittaker

MPA officers

• Catherine Crawford (Chief Executive)
• 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)
• Paul Stock (Director of Strategic Finance)
• Nick Chown (Director of Risk Management)
• Alan Croney (Director of Property Services)
• Paul Cook (Group Director, Directorate of Service Delivery, Information)
• Mick Burt Head of Accident Claims attended for consideration of agenda item 12)
• Assistant Commissioner House (Specialist Crime Directorate)
• Nina Cope attended for consideration of agenda item 20.

91. Apologies for absence

(Agenda item 1)

An apology for absence was received from Richard Sumray. Apologies for lateness were submitted from Graham Tope, Richard Barnes, Elizabeth Howlett and Bob Neill.

Pursuant to Standing Orders, in the absence of the Chair and the Deputy Chair at the beginning of the meeting, it was moved, seconded and duly resolved that Reshard Auladin take the Chair.

92. Declarations of interests

(Agenda item 2)

There were none.

93. Minutes of the meeting held on 18 January 2007

(Agenda item 3)

Resolved: That the minutes of the meeting held on 18 January 2007 be agreed and signed as a correct record.

Upon his arrival at this point Graham Tope took the Chair.

94. Revenue and capital budget monitoring 2006/07- period 9

(Agenda item 4)

This report provided an update on the revenue and capital budget monitoring position for 2006/07 at period 9 (to the end of December). The revenue budget is forecast to overspend by £17.5m (0.6% of budget), which includes £19.8m of estimated additional costs related to Operations Overt/Overamp. The underlying forecast underspend excluding Operations Overt/Overamp is £2.3m (0.1% of budget). The capital programme as at period 9 shows year to date total expenditure of £109.1m. This total represents 56.3% of the revised budget. The forecast for the year of £183.3m is £10.6m below the revised budget of £193.9m principally due to the re-phasing of project expenditure into future years.

The Director of Business Support advised that the Budget Group which had considered the report at its meeting on 12 February had requested that the capital item at paragraph 34 be treated differently than envisaged.

In reply to a question from Rachel Whittaker on the underspending on police pay budgets the Director of Business Support advised that the budget was based on the anticipated recruitment profiles for the year. In practice there would be differences. He undertook to let the member have details of the reasons for these in each case for the current year.

(An explanatory note was subsequently circulated to members)

Resolved – That

1. the year to date and forecast position for revenue budgets and the capital programme be noted; and
2. approval be given to the budget changes to the capital programme as set out at paragraph 34 on the basis that this is a rephasing of the programme.

95. 2007/08 grant settlement

(Agenda item 5)

A report was submitted which updated the Committee on the latest position on the 2007/08 government grant settlement.

Resolved – That-the position on the 2007/08 grant settlement be noted.

96 Draft capital programme 2007/08 to 2009/10 – progress report and proposed governance improvements

(Agenda item 6)

This report provided details of progress on the development of the capital programme for 2007/08 to 2009/10. It gives information on the review of the capital programme against the recently approved prioritisation criteria and application of the agreed scoring mechanism for the ranking of projects. It also notes ways in which the preparation of the capital programme should be improved and makes recommendations regarding the setting of the capital programme for 2007/08 to 2009/10.

In reply to a guest ion from Rachel Whittaker on whether the business risk management process encompassed equality impact assessments the Director of Risk Management responded that whilst the process did require diversity and equality risk impacts to be considered, this was not the same as a full equality impact assessment. However, it was the case that the MPS business case development process required an equality impact assessment with each case submitted.

Resolved – That

1. the proposed capital programme as set out at Appendix 2 be approved;
2. it be noted that a revised governance structure for the capital programme is to be introduced; and
3. it be noted that greater clarity around the timing and magnitude of capital receipts is to be secured to aid budget planning.

97. Draft component budget 2007/08 - climate change

(Agenda item 7)

This report advised the Committee that as part of the Sustainable Development Budget Return 2006/07 the Mayor listed climate change as a priority for London, and as part of the consultation on the draft component budget the Mayor has requested that the MPS reduce CO2 emissions by 10% on the current year by the end of the current business planning period (March 2010) pending publication of the London Climate Change Action Plan (CCAP). This report focuses on the short-term measures, which can be taken to meet the 10% reduction target for the next business planning period.

At the suggestion of the Treasurer it was agreed that a further recommendation be added to set up a revolving fund reserve to which the forecast savings could be transferred.

Resolved – that

1. the Mayor’s CO2 emission reduction target of 10% on the current year by the end of the business planning period (March 2010), which equates to a reduction of 17,619 tonnes of CO2 be adopted.
2. approval be given to the following proposal for achieving this target in line with the guidance:
   • The MPS prioritise reducing carbon emissions generated from the MPA estate through a capital investment in energy efficiency measures of £4.6 million (phased over 3 years) and by retaining the current annual revenue cost of £375,000 (2006/07). The capital sum is an increase of £3.475 million over the three year period over previous Property Services bids or forecasts for capital expenditure and will need to be included in the capital programme for funding. An Option Appraisal & Risk Analysis has been included in Appendix 1. Option 4 is recommended.
   • The fund to be ring fenced to deliver a programme of energy efficiency works with a payback period of 10 years or less and utility cost savings will be recycled back into the fund. The programme will save 7% of the total CO2 emissions generated in 2005/06 by the MPA transport fleet and buildings.
   • The MPS roll out a climate change awareness programme to all MPS staff and Facilities Management Suppliers to deliver the remaining 3% saving through energy efficiency and good housekeeping in the workplace. All MPS Directorates will have a responsibility for raising awareness of their staff and should nominate an Environmental Champion (Band E or above) to work in conjunction with the MPS Environment Team to monitor and support awareness and energy reduction initiatives. Resource Managers would support the Environmental Champions at a local level.
   • The current annual revenue cost of £375,000 will be utilised for additional staff resources, project management and awareness raising to deliver the programme.
   • Note that from 2010/11 year on year revenue savings from reduced utility costs are estimated at £660,000 per annum. It is the intention of the Mayor that this saving will continue to be invested in energy efficiency measures (i.e. “ring fence”) and will potentially significantly contribute to meeting the Mayor’s CCAP long term target of reducing CO2 emission by 30% by 2025
3. the forecast annual savings be transferred to a new revolving fund reserve for future use.

98. 2008/09 business and financial planning process

(Agenda item 8)

This report outlined the financial challenges faced by the MPS in the medium term and outlines the benefits of a business planning process and meeting these. Key changes to the business planning process for 2008/09 were also proposed.

Resolved – that

1. the aims proposed regarding the business and financial planning process as set out at Appendix 1 be agreed;
2. the Committee supports the activities required to ensure the MPS focuses on delivery of the strategic priorities, core business and value for money as shown at paragraph 4); and
3. the proposed governance arrangements and the indicative timetable be noted.

99. Efficiency Plan Monitoring 2006/07

(Agenda item 9)

This report provided an update on the monitoring of the efficiency plan. Overall the forecast indicates and over-achievement against the Home Office’s efficiency plan as at the end of December by £38.4 million.

Rachel Whittaker said that the MPS was to be congratulated for the satisfactory report on overtime it had received from HMIC.

Resolved – that the position against the efficiency plan be noted.

100. Provisional efficiency plan 2007/08 and future years

(Agenda item 10)

This report sets out the financial aspects of the provisional efficiency plan for 2007/08.

Resolved – that

1. the provisional plan be approved;
2. the process for providing in-year updates be noted; and
3. it be noted that the plan will be submitted to the Home Office

101. Treasury Management and Investment Strategy 2007/08

(Agenda item 11)

This report sets out the Treasury Management and Investment Strategy recommended for 2007/08

Resolved – that- Members approve the 2007/08 Treasury Management and Investment Strategy as set out in the report.

102. Personal Insurance Indemnity Policy – progress report

(Agenda item 12)

The Committee ratified informal approval of the Personal Insurance Indemnity Policy (PIIP) in November 2004 and annual progress reports have been submitted subsequently. This report also asked the Committee whether it wished to agree to impose a limit of £500,000 per claim to include tax and National Insurance.

Following discussion on the proposal to a agree a limit of £500,000 per claim members suggested that the Director of Risk Management should consider further options for addressing how the issue might be addressed – including the suggestion that it might be more appropriate in any case for all such payments to be made on a discretionary basis.

Resolved – that

1. the results of the continuing communications exercise to bring the indemnity policy to the attention of key MPS personnel and use of the policy in specific instances be noted;
2. the minor revisions to the policy wording to conform to current MPS Policy procedures and to make the Policy and associated Standard Operating Procedure (SOP) easier to read be noted;
3. the officers give further consideration to agreeing a limit of £500,000 per claim to include tax and National Insurance; and
4. the progress on the approach to the Home Office for a Central Government indemnity to MPS personnel in relation to catastrophe risks be noted.

103. Request for authority to dispose of surplus site in Bromley

(Agenda item 13)

This report requested authority for the disposal of the former residential quarters known as Flats 1-24 Broomleigh, Tweedy Road, Bromley.

Bob Neill, link member for Bromley confirmed that he was satisfied with the proposal.

Resolved – that approval be given to the unconditional sale of the MPA’s interest in this property to the highest bidder for the sum shown in exempt Appendix 1.

104. Request for authority to dispose of surplus site in Lambeth

(Agenda item 14)

This report requested authority for the disposal of the former residential quarters known as Flats 1-24 Carew House, 132 Leigham Court Road, Streatham, Lambeth, London SW16 2RL.

Resolved – that t approval be given to the unconditional sale of the MPA’s interest in this property to the highest bidder for the sum shown in exempt Appendix 1.

105. PFI refinancing

(Agenda item 15)

No report was submitted.

The Acting Director of Resources apologised for the fact that it had not been possible to submit a report in time for the meeting. She explained that PFI was a very complex subject area and it had been necessary to obtain the appropriate high level professional advice. It was now intended that the report would be submitted to the Co-ordination and Policing Committee on 1 March.

The Chair said that given the likely complexity of the report it was essential that
members of that Committee received it in sufficient time to be able to give it
adequate consideration.

(A report on the subject was subsequently submitted to the Co-ordination and
Policing Committee on 1 March 2007)

106. 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 3 and 7 of Schedule 12A to the above Act.

Summary of decisions made on exempt items

Minute 107 agenda item 17 – Exempt Appendix to disposal of site in Bromley
Information noted.

Minute 108 agenda item 18 – Exempt Appendix to disposal of site in Lambeth
Information noted.

Minute 109 agenda item 19 PFI Refinancing
No report submitted.

Minute 110 agenda item 20 Cobalt Square Project
Recommendation amended to reflect fact that the Committee approved the introduction of the phase 2 Project.

Minute 111 agenda item 21 replacement of secure vehicle radios (gougar) with enhanced encryption airwave radios
Recommendations relating to the fitting of radios to covert vehicles were adopted.

Minute 112 agenda item 22 extension to dual carrying of radios – Arqiva contract
Agreed to extend the contract by one year.

Minute 113 agenda item 23 ICT development services framework
Approval be given to the award of contracts to the companies listed in an appendix for inclusion in the ICT development services framework

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