Minutes - draft

Draft minutes of the meeting of the Finance Committee held on 21 February 2008 at 10 Dean Farrar Street, London, SW1H 0NY.

Present

Members

• Graham Tope (Chair)
• Richard Sumray (Deputy Chair)
• Reshard Auladin
• Faith Boardman
• Dee Doocey
• 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)
• Simon Hart (Acting Director of Finance Services)
• Karim Mahamdallie (Director of Business Support)
• Paul Daly (Director of Exchequer Services )
• Alan Croney (Director of Property Services)
• Ailsa Beaton (Director of Information)
• Richard French
• Chris Nason
• Stuart Middleton (Director of Transport Services)
• John Whittaker (Vehicle Recovery and Examination Service) attended for agenda items 12 and 21.
• Stephen Ditchburn (Vehicle Recovery and Examination Service) attended for agenda items 12 and 21.
• Patrick Collins attended for agenda item 6
• Emma Devenish (Head of Environment and Sustainability) attended for agenda items 7 and 9.

128. Apologies for absence

(Agenda item 1)

Apologies for absence were received from Richard Barnes and Damian Hockney.

129. Declarations of interests

(Agenda item 2)

There were none.

130. Minutes of the meeting held on 24 January 2008

(Agenda item 3)

RESOLVED - That the minutes of the meeting held on 24 January 2008 be agreed and signed as a correct record.

131. Revenue and capital revenue budget monitoring 2007/08 – period 9

(Agenda item 4)

This report provides an update on the revenue and capital budget monitoring position for 2007/08 at Period 9 (to the end of December). The revenue budget is forecast to underspend by £27.5m (0.9% of budget), which includes £5.0m of estimated additional costs related to Operation Seagram. The Capital Programme as at Period 9) shows year to date total expenditure of £88.5m. This total represents 49.2% of the revised annual budget. The forecast for the year of £164.0m is £15.8m below the revised budget of £179.8m.

The Chair referred to the recommendation concerning the creation of an earmarked reserve in connection with the Government decision to change the implementation date for the police officers pay award and said that he would ask members to note that decisions regarding the use of this reserve would be made by the Committee at a later juncture.

RESOLVED – That

1. the year to date and forecast position for revenue and capital budgets be noted; and

2. £11.5M be transferred to an earmarked reserve pending decisions on the use of these funds following the Government decision to change the implementation date for the police officers pay award.

132. 2008/09 Grant settlement

(Agenda item 5)

The final grant settlement for 2008-09 and provisional 2009-10 and 2010-11 settlement was announced on 24 January. The details were as anticipated following the provisional announcement on 6 December. Details of the Dedicated Security Posts specific grant were announced on 6 February and were shown in a linked exempt report.

In reply to a question from the Chair the Treasurer advised that the information relating to Dedicated Security Posts appeared as an exempt report as the Home Office letter relating to this matter had been marked as restricted.

The Chair said that the financial information about the posts should be in the public domain as it formed part of the budget. The Chair then reminded the meeting of the relevant parts of the exempt report.

RESOLVED – that the report and the linked exempt report be noted.

133. Fees and charges annual review

(Agenda item 6)

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.

The Committee was advised that the activity described in the first entry at table 1 (evidence and action books) was largely concerned with obtaining the relevant information rather than the cost of making the photocopy. Members reiterated the view 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 and that provision for this should be made in the ACPO recommendations. With specific reference to the proposal to increase specific charges for copy documentation that are significantly higher than those recommended by ACPO, members felt that this should take effect from 1 April 2008 (i.e., that they not be phased in.)

RESOLVED - That

1. the schedule of fees and charges be agreed;

2. the proposal to increase specific charges for copy documentation that are significantly higher than those recommended by the Association of Chief Police Officers (ACPO) be endorsed; and

3. the proposal that increases for specific charges for copy documentation that are significantly higher than those recommended by ACPO be phased in over three years to mitigate the impact upon third parties be not endorsed. The charges to be introduced from 1 April 2008.

134. Treasury management and investment strategy 2008/09

(Agenda item 7)

This report sets out the Treasury Management and Investment Strategy recommended for 2008/09.

Referring to the Ethical Investment Policy, Dee Doocey said that her view was that there should be no investment in any company which had an involvement with animal testing.

In reply to other points from members the Head of Environment and Sustainability advised that the ethical investment policy had been produced in consultation with an external adviser. The summary presented to members was supported by detailed documentation which was based on established best practice and would include definitions of terms such as “oppressive regimes”.

The Treasurer was asked to advise Faith Boardman on how the borrowing plans compared with other police authorities.

RESOLVED –That

1. approval be given too the 2008/09 Treasury Management and Investment Strategy set out in the report; and

2. (with Dee Doocey dissenting) the Ethical Investment Policy be approved.

135. Efficiency plan monitoring

(Agenda item 8)

This report sets out an update on the monitoring of the Metropolitan Police Authority/Metropolitan Police Service 2007/08 efficiency plan. Overall the forecast indicates an over-achievement against the Home Office’s efficiency target by £47.7m compared to £45.6m at quarter 2.

RESOLVED – That the position against the efficiency plan as at the end of December 2007 be noted.

136. Clinton C40 climate change review

(Agenda item 9)

The Committee was advised in a report at its meeting on 18 October 2007 that the Clinton Foundation had partnered with the Mayor of London to establish a procurement alliance of companies that can deliver building energy efficiency retrofit to organisations in London. This report has been prepared to provide an update on the Clinton C40 Climate Change Initiative (CCI) Building Energy Efficiency Programme (BEEP) supplier selection and seek approval to approve any subsequent works within the existing scheme of delegation. The CCI BEEP contract is one of the primary vehicles for carrying out energy efficiency works under the Climate Change Action Plan (CCAP) – with a 10% reduction target in CO2 emissions (on 2005/06) by 2010. The MPA approved the CCI approach in October 2007 subject to satisfactory legal advice, which has been obtained.

In reply to a question, the Head of Environment and Sustainability advised that it was anticipated that the recommendations for work flowing from this exercise would largely be concerned with the introduction of established rather than innovative solutions.

RESOLVED –

1. any work arising out of the energy audits and investment grade proposals carried out under the CCI BEEP are evaluated and approved under established contract rules and schemes of delegation; and

2. a report to be provided in the summer detailing progress with CCI implementation works.

137. Estate update

(Agenda item 10)

This report updates members on the latest information on Estate and Property Services matters as co-ordinated with wider MPS business groups. The report also contained information about the proposed increases in residential rents.

The Director of Property Services advised that the Police Federation had been notified about the proposed new levels of rent; no representations had been received.

In reply to a question from a member, the Director of Property Services confirmed that maintenance agreement was now in place in respect of the planters in the vicinity of New Scotland Yard.

RESOLVED – That

1. the information provided in regard to 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 as detailed in paragraph 10.

138. Operation recover

(Agenda item 11)

This report makes the recommendation for the MPS to revise its policy in relation to lost or stolen vehicles (found) by stopping the cost recovery scheme known as Operation Recover for operational and commercial reasons.

Reshard Auladin said that there needed to be an assurance that lessons had been learnt from the way in which this Operation had been conducted.

Dee Doocey drew attention to a particular case she was aware of where a resident had been charged £600 for the recovery of a motor-bike. She was following this up with the MPS.

The Chair said that there would be considerable practical difficulties in adopting a policy of making refunds available. He would therefore suggest that the Committee should agree a policy of not making refunds.

RESOLVED – That

1. the Committee endorses the cessation of Operation Recover on the grounds that the scheme has not realised the operational and commercial benefits envisaged during the pilot phase;

2. the charging policy be suspended with effect from 17 December 2007;

3. the policy in place before 2005, as outlined in paragraph 1, be reintroduced; and

4. No refunds be made in respect of fees already paid prior to 17 December 2007.

139 Identity and access management

(Agenda item 12)

A report was submitted which sought approval to proceed with procurement action for the solution components of the Identity and Access Management (IAM) Programme.

The Chair referred to a briefing on the subject, which had been given to members at the budget group on 18 February. Richard Sumray said that one area where attention was needed was the linkages between what was being proposed and other processes.

The Director of Information confirmed that this aspect would be addressed.

RESOLVED – That approval be given to the commencement of procurement action for a “chip-and-PIN” technology identity and access management solution (option 3) through competitive tender via the DoI Development Services Framework.

140. Exclusion of press and public

(Agenda item 13)

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 24 January 2008

Summary of decisions made on exempt items

Minute 141 agenda item 14 – 2008/09 grant settlement
Information noted –see under minute 128

Minute 142 agenda item 15 – exempt Appendix to climate change initiative
Information noted.

Minute 143 agenda item 16 – exempt Appendix to estate update
Information noted.

Minute 144 agenda item 17 – approval to award a contract for the provision of coach hire services
Recommendations adopted.

Minute 145 agenda item 18 - exempt Appendix to Identity and access management
Information noted.

Minute 146 agenda item 19 - NSPIS custody & case preparation support contract extension
Agreed to extend an existing contract.

Minute 147 agenda item 20 - Hendon property transactions
Recommendations relating to the provision of units.

Minute 148 agenda item 21 - CapGemini contract variations
Information noted.

Minute 149 agenda item 22 - exempt minutes of the meeting held on 24 January 2008
Agreed and signed as a correct record.

The meeting closed at ... p.m.

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