MOPAC / MPS Financial Performance Period 7 2016/17

This paper summarises the period 7 financial monitoring and requests the DMPC approve one transfer to reserves.

The DMPC is asked to

1. Note the period 7 financial monitoring position;
2. Approve the transfer to reserves as detailed in paragraph 2.2

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 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

2.1 There are no material changes to the Quarter 2 forecast of a net underspend of £7.8m in 2016/17. The underspend on officer pay and staff pay is being offset by difficulties in achieving this year’s savings target. From 2017/18 the savings target will become more challenging, as an additional £38m has been built into the Medium Term Financial Plan.

2.2 There is one proposed transfer to reserves. The transfer to MOPAC reserves of £2.5m is to provide for future budget pressures. Thus securing funding to meet commitments for future agreed Police and Crime Plan priorities in relation to addressing the London crime agenda.

2.3 Appendix 1 sets out further detail of the period 7 financial monitoring position.

2.4 The original capital programme for 2016/17 was approved at a value of £265m. The latest forecast is against a revised budget of £287m with spend of £238.7m and underspend of £48.3m. A comprehensive review of the capital programme is being carried out for this year and future years to ensure the programme is achievable.

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 Equality and diversity implications have been considered and there are no negative impacts identified from the proposals.

6 Background/supporting papers

6.1 Appendix 1 MPS Financial Performance Report for Period 7.