Police Property Act Fund

Report: 6
Date: 3 May 2007
By: Acting Director of Resources on behalf of the Commissioner and the Treasurer

Summary

This report on the Police Property Act Fund (PPAF) provides:

• A summary of the 2005/06 annual accounts;
• The 2006/07 grant budget outturn;
• Proposals for the allocation of the 2007/08 grant budget.

A. Recommendations

Members are invited to:

1. Note the report on the 2005-06 annual accounts for the Police Property Act Fund.
2. Note the outturn of the 2006-07 grants budget.
3. Consider proposals for the allocation of the 2007/08 grants budget.

B. Supporting information

Annual accounts

1. The 2005/06 annual accounts recognise the separation of detained monies (sums held by the MPS pending a decision on ownership) from sums that are appropriate to the PPAF. Two sets of accounts, one for the detained monies account (DMA) and one for the PPAF, are now prepared.

2. A copy of the PPAF and the DMA 2005/06 annual accounts have been submitted to the Treasurer in accordance with the requirements of the financial safeguards proposed by Finance Committee. A summary of the PPAF income and expenditure accounts for 2005-06 and a summary balance sheet as at 31 March 2006 are set out at Appendix 1.

Report on the PPAF Grant Budget 2006-07

3. On 20 April 2006 Finance Committee agreed a 2006/07 allocation of £100,000 to boroughs and £40,000 for London wide expenditure. Of this allocation £73,616 of the borough allocation and £15,000 of the London wide allocation has been spent.

4. A breakdown of the 2006/07 budget and details of awards made are attached at Appendices 2 and 3.

Safer London Foundation (SLF)

5. The PPAF has provided in two previous years financial assistance for the setting up of the SLF. A further request for an award to be provided over three years was received from the SLF and considered by the Co- ordination and Policing Committee (COP) on 7 December 2006.

6. COP decided to award a grant to the SLF of £236,000 for 2006-07 and to commit to future years funding of £175,000 for 2007/08 and £100,000 for 2008/09. This award is subject to the SLF:

• submitting twice yearly reports to the MPA on its work programme and progress in fund raising, to enable the MPA to monitor the movement towards self financing status and the general pace and effectiveness of the SLF Work Programme;
• demonstrating in its programme for 2007/8 how it will work with the MPA and MPS to build community capacity at Safer Neighbourhood Panel level;
• submitting audited accounts for 2005/6.

7. The Deputy Chief Executive, MPA, is in regular contact with the SLF and expects to be able to authorise the release of the 2006-07 award for £236,000 before the end of May 2007 (the SLF having met the above requirements). This is a commitment against the fund and this, with an additional provisional commitment of £275,000 for 2007/08 and 2008/09, will be considered when assessing the level of funding available for other awards.

Detained Money retained for over six years

8. Finance Committee on 20 April 2006 was informed that detained money in police possession in excess of six years where no claim has been received can safely be considered as PPAF money. At 1 April 2006 such sums detained in the twelve months from 1 April 1999 to 31 March 2000 were reclassified resulting in the transfer of £1,165,301 from the DMA to the PPAF.

Proposals for the Allocation of the Grant Budget 2007/08

9. Finance Committee of 20 April 2006 were also advised that of funds originally made available for awards £145,000 would be available for 2007/08. Additionally boroughs have been advised that any 2006/07 awards not allocated to projects will be withdrawn and redistributed in 2007/08.

10. Appendix 2 shows an underspend of £26,384 against the borough 2006-07 grant budget and £25,000 against the London wide budget giving a total underspend of £51,384.

11. While the transfer of funds from the DMA increases sums available for allocation the 2005/06 income and expenditure account at Appendix 1 confirms that the fund is running at a deficit. There has been a decrease in income to the PPAF due to a significant fall in the amount and value of property available under the legislation. The MPS view is that income from sales is unlikely to match previous levels and that a prudent approach should be taken in setting the budget for grant allocations.

12. It is proposed that the previously earmarked funds of £145,000, the 2006-07 underspend of £50,000 and an additional £55,000 should be allocated in 2007/08. This gives a total allocation of £250,000 and it is suggested that for 2007/08 Boroughs are allocated £200,000 and London wide projects allocated £50,000. These allocations are additional to the provisional commitment of £275,000 to the SLF discussed at paragraph 7 above.

Summary

13. The MPS proposes for 2007/08 that:

• the underspend of £50,000 is withdrawn and redistributed.
• the underspend, the £145,000 previously identified and an additional £55,000 provides a total of £250,000.
• of funds available £200,000 is allocated to Boroughs and £50,000 to Londonwide.
• the allocations to Boroughs are again based on the PPAF formula percentages as shown in Appendix 4.
• current practice continues and boroughs are advised that these funds are available for 2007/08 and that any underspend will be withdrawn at year end for reallocation in future years.

Abbreviations

COP

Co-ordination and Policing Committee

DMA

Detained Monies Account

PPAF

Police Property Act Fund

SLF

Safer London Foundation

C. Race and equality impact

Grants are awarded to organisations whose work encourages a positive relationship between police and a wide range of local communities covering the full range of diversity within the Metropolitan Police area.

D. Financial implications

There are no financial implications in relation to the Metropolitan Police Authority Fund. The financial implications for the Police Property Act Fund are addressed above.

E. Background papers

• Finance Committee 20 April 2006
• Co-ordination and Planning Committee 7 December 2006

F. Contact details

Report author: Simon Hart, Acting Director of Finance Services, MPS.

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Send an e-mail linking to this page

Feedback