PCD 1456 2023/24 revised budget

PCD 1456 2023/24 revised budget

The MOPAC 2022/23 draft outturn position is an underspend of £2.969m against a net budget of £64.851m. This included a net transfer to reserves of £5.375m plus the transfer to £2.969m underspends to budget resilience reserve for MOPAC and budget smoothing for VRU. Formal approval for these transfers to reserves from the DMPC is requested. 

Following approval of the MOPAC budget in February 2023 the budget now needs to be updated to reflect:  

• The proposed use of carry forwards from the 2022/23 budget 

• Changes to grant assumptions included in the original budget submission now that grant notification letters have been received.   

This report sets out the revised changes and proposes a revised 2023/24 budget for MOPAC for which formal approval from the DMPC is requested. 

In total, the proposed net budget changes for MOPAC are £0.090m reflecting a minor adjustment between MOPAC and MPS budgets. 

The Deputy Mayor for Policing and Crime is recommended to:   

1. Note the draft 2022/23 budget outturn of a £2.969m underspend. 

2. Approve the carry forward of funds totalling £5.375m in respect of projects that will now be delivered in future years. 

3. Approve the transfer of the £2.969m underspend to earmarked reserves to provide future budget resilience; 

4. Approve the net drawdown of £26.880m of earmarked reserves to fund MOPAC project expenditure.  

5. Approve the revised 2023/24 budget for MOPAC as set out in the report, noting the increase in net expenditure of £0.090m.   

1. Revenue Budget Draft Outturn 2022/23 

1. MOPAC’s 2022/23 net budget was £64.851m, the draft outturn position is an underspend of £2.969m and compared to a forecast underspend at Period 9 of £2.595m. The underspend is largely due the reprofiling of programmes due to the late notification of additional funding and the release of funds following clarification of how projects will be funded.  

2. The draft outturn position includes the proposed carry forward of funds totalling £5.375m for Quarter 4 for projects that will now be delivered in future years. In addition, it is proposed to transfer the £2.969m underspend to reserves of which £2.641m relates to MOPAC and will be transferred to the budget resilience reserve and £0.329m relates to the VRU and will be transferred to the VRU budget smoothing reserve.  Details of the quarter 4 2022/23 carry forward requests are included at Appendix 1. 

3. The 2022/23 opening balance on MOPAC reserves was £47.092m. When the original budget was set, MOPAC were due to use reserves totalling £17.648m. The position has changed significantly with a net contribution to reserves of £8.344m of reserves, including the year end underspend of £2.969m. This results in the closing balance on reserves of £52.124m and includes carry forward requests totalling £28.882m for expenditure that will now be incurred in future financial years.   

2. MOPAC Budget 2023/24 

1. In October 2022, MOPAC and the VRU’s 2023/24 net budget expenditure was set at £72.709m  

2. This report now seeks approval to make further changes to the approved budget to reflect: 

• The carry forward of funds from 2022/23 following finalisation of the draft outturn position of £5.375m. (A detailed breakdown is provided at Appendix One). 

• The carry forward of funds from 2023/24 to reflect the reprofiling of projects into future years of £5.715m (A detailed breakdown is provided at Appendix 2); 

• Confirmation of grants; 

• Updated 2023/24 pay award assumptions, the revised budget assumes a 3.5% 2023/24 pay award. 

3. Approval is now being sought to carry forward additional funds totalling £5.715m to enable the continuation of projects into future years. A summary of the requests per Directorate is set out in the table below. A detailed breakdown of the requested carry forwards is included within Appendix 2.           

4. The original budget for 2023/24 has been updated to reflect approved decisions and reflects the latest information on grants and assumes the requested quarter 4 2022/23 and revised budget carry forwards are approved.  

5. The revised budget incorporating all the changes is set out in the table below. When compared to the original budget approved in October 2022, the net budget has increased by £0.090m, to reflect a minor adjustment between the MOPAC and MPS budget.  

Table 1: MOPAC Revised Budget 2023/24 

6. The opening balance on reserves for 1 April 2023 is £52.124m, the original budget assumed a net use of reserves of £17.351m. The revised budget for which approval is being sought requests a net drawdown from reserves of £26.880m. This results in a forecasted closing balance on reserves of £25.244m. A detailed review of all reserves will be carried out in advance of the quarter 1 2023/24 forecast. Any balances on reserves that are no longer required will be transferred to the budget resilience reserve following DMPC approval. 

Table 2: Reserves 2023/24 opening balance and forecast closing balance 2023/24. 

3. Financial Comments  

1. These are set out in the body of the report 

4. Legal Comments  

1. There are no direct legal implications arising from this proposal. 

2. MOPAC/MPS as statutory bodies must only budget for activities that fall within its statutory powers. Under the Scheme of Delegation and Consent the DMPC must approve any budget movement for £500,000 or above.  Under Financial Regulations all decisions in relation to the transfer in and out of reserves will be made by the DMPC. 

5. GDPR and Data Privacy  

1. GDPR matters have been discussed with the Data Protection Officer, who has confirmed that no Data Protection Impact Assessment (DPIA) is required for these programmes of work.  However, the personal details of any individuals or organisations with whom contact is made for the purposes of the engagement will be managed in accordance with MOPAC’s wider Privacy Notice.  Any organisation that is contracted to conduct work in support of this programme will be required to sign a MOPAC contract that will specify their GDPR responsibilities. 

6. Equality Comments  

1. MOPAC is required to comply with the public sector equality duty set out in section 149(1) of the Equality Act 2010. This requires MOPAC to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations by reference to people with protected characteristics.  The protected characteristics are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.  

2. There are no equality and diversity implications arising from this report. 

7. Background/supporting papers 

• Appendix 1 - Requested Carry Forwards for Quarter 4 – 2022/23 

• Appendix 2 – Requested Carry Forwards – 2023/24