MOPAC 2021-22 Revised Budget and 2020-21 transfer to reserve requests

Following Mayoral approval of the 2021/22 MOPAC budget in February 2021, and finalisation of the draft outturn position for 2020/21, this report sets out proposals to:-

1. Transfer £19.6m into reserves of which £15.2m relates to expenditure that has been reprofiled from 2020/21 into future years and £4.4m relates to the 2020/21 underspend.

2. Increase the approved budget for 2021/22 by £8m to be funded by reserves. Of this £8m, £5.7m reflects expenditure that has slipped from 2020/21 (and is included in the budget carry-forward request at point 1 above) and £2.3m relates to new priority spend areas identified after the 2021/22 budget was approved in February 2021.

The Deputy Mayor for Policing and Crime is asked to:

1. Approve the transfer of £15.2m to earmarked reserves to fund project expenditure that has been reprofiled from 2020/21 into future years and the transfer of the 2020/21 underspend of £4.4m to the MOPAC unallocated reserve.

2. Approve an increase in the approved budget for 2021/22 of £8m, of which £7.7m is one off and the balance of £0.3m is ongoing. Of this £8m:

a. £5.7m is from earmarked reserves to fund project expenditure that has been reprofiled from 2020/21 into 2021/22

b. £2.3m is to fund new priority spend areas identified after the 2021/22 budget was approved in February 2021. Of this £2.3m, £1.9m is to be met from the MOPAC unallocated reserve and £0.4m from the VRU reserve.

1. Introduction and background

1.1. As at the end of the financial year 2020/21 MOPAC reported a budget variance of £19.6m, of this £15.2m reflected expenditure that had been reprofiled into future years and £4.4m was an underspend. This paper sets out proposals to carry forward the funding of £15.2m where expenditure has been reprofiled, and transfer it in to earmarked reserves. In addition and to provide resilience, it is recommended that £4.4m is transferred to the MOPAC unallocated reserve for use in the future.

1.2. This paper also seeks approval to increase MOPAC’s 2021/22 budget by £8m by using:

• £5.7m from earmarked reserves to fund project expenditure that has been reprofiled from 2020/21 into 2021/22

• £1.9m from the MOPAC unallocated reserve and £0.4m from the VRU reserve for new priority spend areas which were identified after the 2021/22 budget was approved in February 2021.

2. Issues for Consideration

2.1. Finance Business Partners have met with every MOPAC and VRU Director to confirm their:

• 2020/21 earmarked carry forward request

• 2021/22 budget and how this is comprised (detailing headcount, all supplies/ services and contracts/ grants)

• Profiling of their 2021/22 spend, including what will not be spent in the current financial year and may require profiling into future years due to the nature of programme and commissioned spend

• New priority spend areas which were identified after the 2021/22 budget was approved in February 2021, particularly as a result of the election and the Mayor’s manifesto commitments, resulting in additional budget requests to be funded from reserves.

3. MOPAC (and VRU) Carry Forward from 2020/21 to 2021/22

3.1. Following the review of the carry forward requests it is recommended that funding totalling £15.2m should be carried forward, with funds being transferred to earmarked reserves. The £4.4m underspend will be transferred to the MOPAC unallocated reserve providing resilience for future years.

4. Bids for additional 2021-22 Budget

4.1. Since the MOPAC 2021-22 budget was approved in February 2021, specific areas of unfunded pressure have been identified in MOPAC with additional budget totalling £1.9m being requested which will be funded through the MOPAC unallocated reserve. There is also a VRU request to use £0.4m from the VRU earmarked reserve.

5. Financial Comments

5.1. The carry forward and bids for additional budgets have been reviewed with each Director.

5.2. Some projects within the VRU and MOPAC have been extended beyond 2021/22 financial year and have end dates falling into 2022/23. The associated funding to support these projects straddle into 2022/23 and will see £3.37m for VRU and £6.1m for MOPAC retained in earmarked reserves and ring-fenced to support the relevant projects beyond this financial year.

6. Legal Comments

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

6.2. 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.

7. GDPR and Data Privacy

7.1. GDPR matters have been discussed with the Data Protection Officer, who has confirmed that no Data Protection Impact Assessment (DPIA) is required for this area of spend. However, the personal details of any individuals or organisations with whom contract is made for the purposes of the engagement will be managed in accordance with MOPAC’s wider Privacy Notice.

8. Equality Comments

8.1. 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.

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