Police Property Act Fund

Report: 06
Date: 17 April 2008
By: Director of Resources on behalf of the Commissioner and the Treasurer

Summary

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

1.  a summary of the 2006/07 annual accounts;
2. the 2007/08 grant budget outturn;
3. proposals for the allocation of the 2008/09 grant budget.

A. Recommendations

That

1. members note the report on the 2006-07 annual accounts for the Police Property Act Fund;

2. note the outturn of the 2007-08 grants budget; and

3. consider proposals for the allocation of the 2008-09 grants budget.

B. Supporting information

Annual Accounts

1. The 2006-07 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 prepared.

2. A copy of the PPAF and the DMA 2006/07 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 2006-07 and a summary balance sheet as at 31 March 2007 are set out at Appendix 1.

Report on the PPAF Grant Budget 2007- 08

3. On 3 May 2007, the Finance Committee agreed a 2007/08 allocation of £200,000 to boroughs and £50,000 for London wide expenditure. Of this allocation, £175,000 of the borough allocation has been spent but the London wide allocation has not been awarded.

4. A breakdown of the 2007/08 budget and details of awards made are attached at Appendices 2 and 3.

Safer London Foundation (SLF)

5. The PPAF provided financial assistance for the setting up of the SLF and in 2006 received a request for an award, which was considered by the Co-ordination and Planning Committee (COP) on 7 December 2006.

6. COP awarded a grant to the SLF of £236,000 for 2006-07 and committed to future years funding of £175,000 for 2007/08 and £100,000 for 2008/09. This award was 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.

7. The Deputy Chief Executive, MPA, is in regular contact with the SLF and has authorised the release of the 2006-07 award for £236,000 and the 2007-08 award of £175,000, the conditions at paragraph 6 having been achieved. The commitment against the fund of £100,000 for 2008-09 remains and will be considered when assessing the level of funding available for other awards.

Detained Money retained for over six years

8. The Finance Committee was informed on 20 April 2006 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 2007 such sums detained in the twelve months from 1 April 2000 to 31 March 2001 were reclassified resulting in the transfer of £428,467 from the DMA to the PPAF.

Proposals for the Allocation of the Grant Budget 2007/08

9. Boroughs have been advised that any 2007/08 awards not allocated to projects will be withdrawn and redistributed in 2008/09.

10. Appendix 2 shows an underspend of £24,855 against the borough 2007-08 grant budget and £50,000 against the London wide budget giving a total underspend of £74,855.

11. The transfer of funds from the DMA increases sums available for allocation the 2006/07 income and expenditure account at Appendix 1 confirms that the fund is running at a surplus. However there has been a decrease in other income streams 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 2007-08 underspend of £75,000 and an additional £225,000 should be allocated in 2008/09. This gives a total allocation of £300,000 and it is suggested that for 2008/09 this is allocated to Boroughs only. While this does not provide specifically for London wide programmes the focus on local initiatives complements SLF activity. This allocation is additional to the provisional commitment of £100,000 to the SLF discussed at paragraph 7 above.

Summary

13. The MPS proposes for 2008/09 that:

• the Borough and London wide underspend of £75,000 is withdrawn and redistributed.
• the underspend and an additional £225,000 provides a total of £300,000.
• the £300,000 is allocated to Boroughs only.
• 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 2008/09 and that any underspend will be withdrawn at year end for reallocation in future years.

Abbreviations:

COP

Co-ordination and Planning 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

None

F. Contact details

Report author(s): Simon Hart, Acting Director of Finance Services, MPS

For more information contact:

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

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