MOPAC Budget Monitoring 2015 - Period 4

This paper summarises the period 4 financial monitoring and requests the DMPC approval.

The DMPC is asked to
1. Note the period 4 financial monitoring position
2. Approve the transfers to and from reserves as detailed in paragraph 3.2

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.

2 Issues for consideration

2.1 In summary, an overspend of £38.8m is forecast for 2015/16. The net forecast overspend is mainly due to pressures within the following budgets:

• Police Staff Pay - £l.Bm
• Police Overtime £11.3m (net of income/grant related to overtime)
• Supplies and Services - £11.6m
• Income - £15m shortfall

These are offset by forecasts underspends on

• PCSO Pay (£3.3m)

Appendix 1sets out further detail of the period 4 financial monitoring position.

2.2 The forecast outturn for capital expenditure is £259m compared to the 2015/16 Capital Programme of £265m.

3 Financial Comments

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

3.2 The net value of the transfer to/from reserves is £60k, the breakdown is as follows:
• Transfer to reserves of £23k- BAA Airwave Replacement
• Transfer from reserves £23k - Communications Project
• Transfer from reserves £5k- Major Change Fund
• Transfer from reserves £55k - Partnership & Sponsorship

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.