Minutes

Minutes of the meeting of the Finance Committee held on 19 July 2007 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

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

MPA officers

• Catherine Crawford (Chief Executive)
• Ken Hunt (Treasurer)
• John Crompton (Committee Services)
• David Riddle (Deputy Chief Executive) attended for consideration of agenda item 22
• Peter Tickner (Director of Internal Audit) attended for consideration of agenda item 24

MPS officers

• Anne McMeel (Director of Strategic Finance)
• Sharon Burd (Director of Finance Services)
• Karim Mahamdallie (Director of Business Support)
• Alan Croney (Director of Property Services)
• Steve Mills (Interim Director of Category Management, Procurement Services)
• John Whittaker, Director of Commercial Services
• Chief Superintendent George Clarke (Integrated Prosecution Teams)
• Steve Ditchburn (Head of Vehicle Recovery and Examination Service Brith Sread (Director of Commercial Operations, Property Services)
• Commander Bob Broadhurst attended for consideration of agenda 14 item
• Gary Pugh Director of Forensic Services attended for consideration of agenda item 25

1. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Richard Barnes, Faith Boardman, Dee Doocey and Rachel Whittaker.

2. Declarations of interests

(Agenda item 2)

Richard Sumray made a declaration in relation to agenda item 22 - membership of the Marathon Trust.

3. Minutes of the meeting held on 3 May 2007

(Agenda item 3)

Resolved - That the minutes of the meeting held on 3 May 2007 be agreed and signed as a correct record.

4. Budget group

(Agenda item 4)

A report was submitted which invited the Committee to make appointments to the Budget and Police Overtime Group.

Resolved – That

1. all members of the Finance Committee serve on the budget group; and
2. Graham Tope be confirmed as Chair of the group

5. Annual Report 2006/07

(Agenda item 5)

The annual report setting out the work of the Finance Committee was submitted for approval.

Resolved – That the report be agreed as representing the Committee’s work over the last year for submission to the Authority.

6. Finance Committee work programme 2007/08

(Agenda item 6)

A draft work plan for the Committee was submitted. Whilst setting out known items, it also asked that members bear in mind that additional matters for report will arise during the course of the year.

The Treasurer advised that in addition to the items listed there would also be a report on Activity Based Costing/Activity Analysis. In response to a point from Reshard Auladin it was agreed that some means be identified for the work of the new Procurement Oversight Group to be reported to the Committee.

Resolved - That subject to the inclusion of Activity Based Costing/ Activity Analysis the work programme be approved.

7. 2006/07 Revenue and capital outturn

(Agenda item 7)

The report provides an update on the provisional outturn position for revenue and capital budgets in 2006/07. The revenue budget is underspent by £5.1m (0.2% of budget), which includes £20.6m of additional costs related to Operations Overt/Overamp. The underlying forecast underspend excluding Operations Overt/Overamp is £25.7m (1.0% of budget).

Members extended congratulations to the officers on the accuracy of the projections in the budget monitoring reports which had been presented to them during the year which had mean that the outturn position was largely in line with expectations.

Resolved – That

1. the provisional outturn position against the revenue and capital budgets for the year be noted;
2. the transfer of the £5.1m net revenue underspend to the general reserve be noted;
3. approval be given to the carry forward of approximately £37.4m of capital budgets into 2007/08;and
4. it be noted that these figures may be subject to change as final account closure continues.

8. Revenue and capital budget monitoring 2007/08 - period 2

(Agenda item 8)

This report provides an update on the revenue and capital budget monitoring position for 2007/08 at Period 2 (to the end of May). The revenue budget is forecast to underspend marginally by £0.2m (0.01% of budget). The capital programme for 2007/08 is still being finalised and will be reported as part of period 3 monitoring.

The Director of Business Support asked that it be noted that information relating to Operation Seagram, the investigation into the terrorist incidents in London and Glasgow at the end of June, would be included in the next monitoring report.

Resolved – That

1. the provisional outturn position against the revenue and capital budgets for the year be noted be noted;
2. the transfer of the £5.1m net revenue underspend to the general reserve be noted;
3. approval be given to the carry forward of approximately £37.4m of capital budgets into 2007/08; and
4. it be noted that these figures may be subject to change as account closure continues.

9. Budget Submission 2008/09

(Agenda item 9)

A report was submitted which summarised the Mayor’s budget guidance for the period 2008/09 – 2010/11 budget and business plans and outlined the steps being taken to draw up the interim information and final budget submission for consideration and approval.

Resolved – That the Mayor’s budget guidance for the period 2008/09 – 2010/11 and the implications for the MPA budget be noted.

10. MPA/MPS Capital Strategy

(Agenda item 10)

A report was presented on the updated capital strategy for members’ comments and approval. The draft capital spending and borrowing plan for 2008-9 onwards will be based on this strategy.

Members reiterated the need to take into account from the outset the legacy benefits associated with spending on the Olympic Games.

Resolved – That approval be given to the updated capital strategy 2008 to 2011.

11. Efficiency plan quarterly monitoring

(Agenda item 11)

This report provided an update on the monitoring of the Metropolitan Police Authority / Metropolitan Police Service 2006/07 efficiency plan. Overall, the Home Office’s efficiency target was exceeded by £34.1m.

Resolved – That the position against the efficiency plan as at Quarter 4 be noted.

12. Annual review of the schedule of fees and charges – update report

(Agenda item 12)

This report sets out information updating members on the basis for the adoption of ACPO charges for common items by the MPS and options for levying charges in the future to ensure the charges in London reflect the general higher costs and overheads.

Resolved – That the report be noted.

13. Treasury Management financial review

(Agenda item 13)

This report presented the Annual Review of Treasury Management for the year ended 31 March 2007.

Resolved- That the annual of the Treasury Management function be noted.

14. The cost implications of Public Order Events

(Agenda item 14)

This report sets out the policing costs associated with major public order events between 1 January 2006 and 31 March 2007.

The Chair referred to comment in the press concerning the total cost of the event concerning the removal of Brian Haw’s stand from Parliament Square as shown in appendix 1. Commander Broadhurst reminded the Committee that the operation had been carried out in pursuance of a court order concerning the dimensions of the stand. Health and safety consideration had been factored in the operation and in order to avoid undue attention the action had been carried out at night. In the light of information about the likelihood of demonstrations following the action, officers had been placed on standby for 40 hours afterwards to be deployed if needed. This accounted for 4 of the 5 of the police shifts shown in the appendix.

Resolved – That the report be noted

15. Integrated Prosecution Teams

(Agenda item 15)

This report provides details of costs incurred by the MPS on the three pilot Integrated Prosecution Team sites.

Members indicated that they wished to see the full business case at the earliest opportunity.

Resolved – That the report be noted.

16. Estates update

(Agenda item 16)

This report updated members on the latest information on Estate and Property Services matters.

In reply to a questions from members the Director of Property Services provided an oral update on the provision of a new patrol base in Greenwich. The Director also undertook to produce a briefing paper on recycling facilities in the estate.

Resolved – That the information on current estate issues be noted

17. Routine Contracts Programme

(Agenda item 17)

This report set out the latest version of the Routine Contracts Programme, which provides members with detail on the contracts above £1m that the MPS wishes to let over the next twelve months on a rolling programme as well as details of those contracts let since the last report. The programme only covers the known routine renewals and not the emergent requirements that will continue to be dealt with under the current arrangements and brought to Committee where required.

Resolved - That the latest version of the Routine Contracts Programme be approved and authorisation be given to place the OJEU advertisements as appropriate.

18. Exclusion of press and public

(Agenda item 18)

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.

Summary of decisions made on exempt items

Minute 19 agenda item 19 – Exempt Appendix to estates update
Information noted.

Minute 20 agenda item 20 – exempt Appendix to routine contracts programme
Information noted.

Minute 21 agenda item 21 Central London accommodation strategy
Progress on the strategy was noted.

Minute 22 agenda item 22 – MPS Sports Clubs
Recommendations were adopted.

Minute 23 agenda item 23 safer neigbourhoods procurement update
Recommendations were adopted and a further report to be noted.

Minute 24 agenda item 24 vehicle recovery and storage contracts
Approval given to the commencement of the OJEU tender process.

Minute 25 agenda item 25 establishment of MPS forensic service evaluation and monitoring unit (FSEMU)
Recommendations adopted and delegated authority agreed concerning the possible acquisition of a site in Lambeth.

Minute 26 agenda item 26 - exempt minutes of the meeting held on 3 May 2007
Agreed and signed as a correct record.

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