Minutes

Minutes of the meeting of the Finance Committee held on 20th September 2007 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

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

MPA officers

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

MPS officers

• Anne McMeel (Director of Strategic Finance)
• Sharon Burd (Director of Finance Services)
• Karim Mahamdallie (Director of Business Support)
• Paul Stock (Director Strategic Finance)
• Alan Croney (Director of Property Services)
• Peter Ross (Director of Construction PSD)
• Deputy Assistant Commissioner Janet Williams (SCD) (agenda item x)
• Deputy Chief Superintendent Nigel Mawe (Economic and Specialist Crime) (agenda item 7)
• Anthony Doyle (Director of Procurement Services)
• Steve Ditchburn (Head of Vehicle Recovery and Examination Service)
• Martin Rusling (Territorial Policing) (agenda item 18.)

27. Apologies for absence

(Agenda item 1)

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

28. Declarations of interests

(Agenda item 2)

There were none.

29. Minutes of the meeting held on 3 May 2007

(Agenda item 3)

Resolved - That the minutes of the meeting held on 19 July 2007 be agreed and signed as a correct record.

30. Revenue and capital budget monitoring 2007/08 – Period 4

(Agenda item 4)

This report provides an update on the revenue and capital budget monitoring position for 2007/08 at period 4 (to the end of July). The revenue budget is forecast to underspend by £3.7m (0.1% of budget), which includes £3.6m of estimated additional costs related to Operation Seagram. The capital budget as at period 4 (to the end of July) shows year to date total expenditure of £37.2m. This total represents 17% of the revised budget of £218.7m. The forecast for the year of £178.6m is £40.1m below the revised budget.

In relation to the increased police national computer charges, the Committee was advertised that these would be included in the budget for the following year.

RESOLVED – That the year to date and forecast position for revenue and capital budgets be noted.

31. Grant consultation 2008/09

(Agenda item 5)

This report provides information on the limited review of the grant system, which has led to the publication of a consultation paper by the Department for Communities and Local Government. The merits of the various options for change are considered and a draft response to the consultation presented.

Members were informed, in particular, that the option of rolling the Additional Rule 2 grant into principal formula grant (POL2) would mean a grant loss of £15.2M, incorporating the Crime Fighting Fund into principal grant (POL3) would mean a loss of a further £15.7M. Additionally, proposed changes to the Area Cost Adjustment and tapering grant floors down were also detrimental to the Authority.

Members referred to the assumptions made on population levels and the fact that several London borough Councils had made representations that the grant formula meant that they were being required to provide services for which they did not receive a level of funding commensurate with the true population levels. It was agreed that the submission be amended to include a reference to how this aspect affected policing and the need for accurate up to date figures.

RESOLVED – That, subject to the inclusion of comments about the assumptions about the population levels, the comments in Appendix 2 be approved for submission to the Department for Communities and Local Government.

32. Efficiency plan monitoring 2007/08 quarter 1

(Agenda item 6)

A report was submitted which provided an update on 2007/08 efficiency plan. Overall, the forecast indicates an over-achievement against the Home Office efficiency target by £51.9 million

RESOLVED –That the position against the efficiency plan as at the end of June be noted.

33. Proceeds of Crime Act

(Agenda item 7)

A report was submitted which advised the committee that the MPS Payback Programme Board (PPB) proposes expenditure of £3.9m from the Home Office Asset Recovery Incentivisation Scheme in order to reduce crime by maximising the use of powers under the Proceeds of Crime Act 2002 (POCA). The PPB is directing the rollout of the Payback Strategy pan MPS. This programme is self-funding through the Home Office Incentivisation Scheme. The plan is mainly to build infrastructure to deliver the required step change in performance.

Copies of correspondence between Lee Jasper, the Mayor’s adviser on policing and equalities, and the Chair of the Committee were tabled.

Deputy Assistant Commissioner Janet Williams and Deputy Chief Superintendent Nigel Mawer attended for this item and answered members’ questions.

Members indicated that they accepted the general thrust of the proposals and also shared the concerns which had been raised by Mr Jasper concerning the Home Office Review of the Incentivisation Scheme and the need to retain this Scheme, and noted from the briefing note that the MPS was lobbying for its retention. The Committee requested that the authority join the MPS in this lobbying.

RESOLVED –That

1. the report be noted;

2. the budget allocation of £3,863,000 in 2008/9 as outlined at Appendix 1 and the associated virements between budgets and reserves be agreed; and

3. the correspondence which had been tabled be noted and it be further agreed that the MPA join with the MPS in lobbying for the retention of the Incentivisation Scheme

34. Insurance and liability provision

(Agenda item 8)

A report was submitted which outlined the insurance renewal programme for 2007/08 and sought approval for various renewals.

RESOLVED – That –

1. the insurance policies be re-let in accordance with the terms outlined in the exempt report, with effect from 1 October 2007; and

2. the annual savings of £439,000 in a full year (£207,000 in 2007/08) be transferred to insurance reserves on the balance sheet.

35. Estates update

(Agenda item 9)

A report was submitted which provided an update on estate and property services matters. A further schedule relating to residential sales was tabled.

Rachel Whittaker referred to the planting boxes surrounding New Scotland Yard, which continued to be in a forlorn state. The Director of Property Services undertook to provide a briefing.

In reply to a question from Elizabeth Howlett, the Director of Property Services reported that there had been no structural damage to the estate during the recent floods.

RESOLVED - That the information on current estate issues be noted.

36. Safer neighbourhoods procurement strategy

(Agenda item 10)

This report expands upon the report provided to Members in July 2007 regarding the 2nd stage of the Safer Neighbourhoods Property Programme, providing the complete strategy for the procurement of this Stage. Of the 284 bases to be constructed, 160 are now complete; the remaining 124 bases (approximately) will be completed in Stage 2 of the programme, with a target completion of December 2010. Approval was given to Property Services by the Finance Committee in July 2006 to take initial steps to gain market acceptance of the preferred procurement route. This has been done with satisfactory response being received from the proposed frameworks. The report contained recommendations concerning the commencement of formal tender action.

RESOLVED – That

1. approval be given to the commencement of tender action for the appointment of Employers Agent / Cost Consultant from the OGC Project Management & Full Design Team Services Framework as detailed in option 3 –i.e. using existing compliant frameworks;

2. approval be given to the commencement of tender action for the appointment of Design, Develop & Construct Contractor from the SECE Major Contractors Framework using the procedure detailed detailed in option 3; and

3. approval be given to the commencement of tender action for the appointment of Acquisition Specialist from the OGC Estates Professional Services as detailed in option 3.)

37. Efficiency plan quarterly monitoring

(Agenda item 11)

A report was submitted which advised that Property Services (through the Environment Team, Operational Support Group (OSG), and Computer Modelling Bureau (CAMB)) provides services to other UK Police Forces, SoCA and other criminal justice organisations. Some services are also provided to the MoD and to/via Government Departments. The report sought permission to continue this arrangement on a “full cost recovery” basis as required under the Regulations.

In reply to a question, the Director of Property Services confirmed that the proposal was compliant with the IP3 framework

RESOLVED – That

1. the provision of the services to other agencies and approve the continuation of these ad hoc services on the basis of full cost recovery as required under Financial Regulations be noted;
2. it be agreed that as the service provision is on a “support” and “on demand” basis, to meet front line policing and related events, approval be given to enter in to these arrangements subject to a “post event” quarterly report being made to the Treasurer for monitoring purposes; and
3. approval be given for specific provision below a threshold of £100,000 per annum to be delegated to the Chief Executive. Where immediate approval is necessary because of unforeseeable operational needs the Director of Strategic Finance may approve the provision of the service but must inform the Authority at the earliest opportunity.

38. Exclusion of press and public

(Agenda item 12)

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

Summary of decisions made on exempt items (Note - the press and public were able to be present during consideration of agenda items 13 to 17)

Minute 39 agenda item 13 – exempt appendix to estates update
Information noted.

Minute 40 agenda item 14 – exempt appendix to routine contracts programme
Information noted.

Minute 41 agenda item 15 - acquisition of premises in Uxbridge
Approval was given to the report’s recommendations.

Minute 42 agenda item 16 – supply and delivery of it consumables, magnetic media, paper and stationery
Recommendations relating to a new sourcing programme were adopted.

Minute 43 agenda item 17 - Forensic medical examiner budget and spend
A report relating to managing the costs was noted.

Minute 44 agenda item 18 vehicle recovery and storage contracts
Report deferred. A further report to be submitted to the November meeting of the full Authority.

Minute 45 agenda item 26 - exempt minutes of the meeting held on 19 July 2007
Agreed and signed as a correct record.

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