MPA support organisation budget monitoring 2000-01

Report: 8
Date: 18 January 2001
By: Treasurer

Summary

This report shows the actual and committed expenditure of the MPA support organisation for April–November 2000 profiled against budget.

A. Supporting information

Introduction

1. This report sets out monitoring information in respect of the MPA support organisation, excluding internal audit and consultation. The accounts now fully reflect the actual and committed expenditure from April to November 2000, and show a marginal under spending against the profiled budget.

2. A large amount of work has been undertaken to ensure that MPA local records of expenditure reconcile with those of the MPS Finance Department. This has necessitated MPA staff going to Cobalt Square to interrogate the MPS financial computer system, as there is no electronic link. Additionally efforts have been made to collect all available evidence on committed, but as yet un-invoiced expenditure, and a system has been developed to ensure that the MPA administration team are informed of all orders/purchases as these are made.

Variations in presentation

3. Changes have been made to the report budget category names to explain more accurately the expenditure type, i.e. 'Office Costs' becomes Office Supplies, Equipment and Furniture.

4. The Training heading was previously unallocated and consisted of training costs, conferences attendance fees and the costs of hiring halls for Authority and Committee meetings. This has now been split and the Meetings budget includes the costs of all external venues, coach hire and catering costs for all meetings.

5. The allocation for these budgets has been vired from the accommodation budget, the original estimated cost of which has now been reduced by more recent information from the GLA.

Comparison with budget

6. The Members Allowance budget is clearly not adequate for the current year, being roughly half the maximum amount that can be claimed in any one year. (When this was originally set it was assumed that the MPA would not fully begin its business until September.)

7. One commitment not shown on the report is that for Membership subscriptions. Subsequent information has revealed that the commitment to the APA and LGA will result in an overspend of £11,700.

8. Staffing costs are just within budget. They should start to stabilise but are affected by the high costs of employing agency staff and continuing placement fees for professionally qualified contract staff.

9. The budgets for both Office Supplies, Equipment and Furniture, and for IT/IS have proved to be underestimates of the actual costs. A review is being conducted to identify the 'set up' costs within these budgets with a view to charging these against the reserve for MPA first year costs established in the opening balance sheet. (It needs to be noted that much furniture, supplies and IT equipment for all MPA staff and members has had to be purchased within this financial year.)

Conclusion

The MPA management team will continue to monitor the position on a regular basis. At this stage it is likely that the final expenditure for the year will be close to budget.

B. Recommendation

Members note the report.

C. Financial implications

Expenditure is expected to be contained within budget for this year.

D. Review arrangements

A further report will be made to the Committee in April 2001.

E. Background papers

• MPA Admin File – 16/2001/Finance

F. Contact details

The author of this report is Mandy Dixon, MPA.

For information contact:

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

Send an e-mail linking to this page

Feedback