MOPAC / MPS Financial Performance Provisional Outturn 2016/17

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 2016 / 17 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

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. Taking account of the budgeted use of reserves, the MOPAC/MPS provisional revenue outturn is a net underspend of £12.4m, (0.5% of gross budget)

2.2. The detail of the revenue outturn, variances against budget and reporting against planned savings will be reported as part of the 2016/17 annual accounts.

2.3. The outturn includes the underspend of £34.8m against budgeted reserves funding that had been expected to be used in this financial year to meet one-off change expenditure which has slipped to 2017/18. In addition, use of reserves has previously been approved for investigative coaches (£5.6m), and Digital Policing modernisation (£0.6m)

2.4. The proposed new transfers to and from reserves totalling £6.2m are

New additional transfers to reserves, £9m

• Undercover Policing Inquiry £5.7m
• MOPAC projects £1.1m
• Leading for London £1.1m
• Roll out of defibrillators £0.3m
• Software upgrade to track vehicles through Vehicle Recovery and Examination Service £0.6m
• Specialist Operations - reserve top up for replacement of Airwave £0.2m

New additional transfers from reserves, £2.8m

• MetHQ projects £0.4m
• Uniform Impairment reserve £1.2m
• Territorial Policing Partnership reserves £0.2m
• Property Services dilapidation £1m

2.5. If approved the table below sets out the budgeted and proposed levels of earmarked reserves as at 31/3/17

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

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.