MOPAC/MPS Financial Performance Provisional Outturn 2018/19

This paper reports the provisional revenue outturn position of MOPAC/MPS, and requests approval for transfers to and from reserves.

That the Deputy Mayor for Policing and Crime

1. Notes the 2018/19 revenue provisional outturn financial position

2. Notes previously approved use of reserves

3. Approves new transfers to and from reserves as set out in paragraph 2.4

4. Approve the budget movements set out in paragraph 2.7

1. Introduction and background

1.1 As part of MOPAC’s and MPS corporate governance arrangements regular monthly and in-depth quarterly monitoring processes are in place to track spend against budget and the achievement of planned savings and income targets.

1.2 In line with the Scheme of Delegation and Consent the DMPC is responsible for the approval of all MPS proposed budget movements and virements in excess of £500,000 which are highlighted on a monthly basis as part of the monthly budget monitoring report, and approval of all transfers to and from reserves.

2. Issues for consideration

Provisional Revenue Outturn

2.1. The MOPAC/MPS provisional revenue outturn is a net underspend of £12.0m (0.4% of gross budget), which will be transferred into to reserves.

2.2. The detail of the revenue outturn, variances against budget and reporting against planned savings are reported as part of the 2018/19 annual accounts.

2.3. The outturn includes the net increase of £17.6m compared to budgeted reserves funding that had been previously approved (excluding the transfer into reserves of the £12m outturn underspend)

Reserves

2.4. The proposed new transfers to and from reserves which required DMPC approval are

• New additional transfers to reserves of £23.5m;

o Property Services: £2.4m

o Adjustments to CHIS provision in Met Operations: £2.1m

o Mental Health training budget: £2.0m

o Collaborative Procurement Grant: £1.0m

o MOPAC spend to be used on future commitments: £1.0m

o Violent Crime Taskforce reserve: £0.8m

o HR reserve relating to officer underspend recruitment activity: £0.7m

o Increase in firearms uplift reserve: £0.7m

o Covert reserves, Heathrow expansion and Airports Airwave: £0.8m

o £12m 2018/19 underspend to fund: £9.3m to balance the 2019/20 Budget gap (as approved in the 2019/20 budget submission), £2.7m to manage future budget pressures.

• New additional transfers from reserves of £20.6m;

o Drawdown in relation to commercial settlement: £15m

o Public Inquiries: £2.8m

o Leading for London programme: £0.7m

o Investigative coaches: £0.9m

o Net use of CT reserve: £0.7m

o POCA reserves, partnership reserves and National Collaborative Procurement Programme Quarter 4 spend £0.5m

2.5. If approved the table below sets out the budgeted and proposed levels of earmarked reserves as at 31/3/19. This excludes reserves held by MOPAC for national functions (NPCC, NPoCC, Police Reform)

2.6. Any new calls on reserves will require a specific DMPC decision.

2.7. Budget Movements at Quarter 4: See attached Appendix 2 for detailed analysis of recommended budget moves.

• £0.5m HR additional officers recruitment funding from running expenses to Police staff and PCSO pay.

3. Financial Comments

3.1. As this is a financial report the financial implications are contained within the body of the report.

4. Legal Comments

4.1. Under section 3 (6) of the Police Reform and Social Responsibility Act, MOPAC is under a duty to secure the maintenance of an efficient and effective police force. Under paragraph 7 of schedule 3 of the 2011 Act MOPAC may do anything which is calculated to facilitate, or is conductive or incidental to, the exercise of its functions. Under section 79 of the Act, MOPAC must have regard to the Policing Protocol when exercising its functions. The Policing Protocol provides that PCCs (including MOPAC) as recipient of all funding, must determine how this money is spent.

4.2. 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. Equality Comments

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

6. Background/supporting papers

None.