Administrative Charges to the Police Property Act Fund

The Police Property Act 1897 and Regulations made under the Act provide for the relevant authority to dispose of property which has been lawfully seized and is in the possession of the police in the circumstances where the owner has not been ascertained, or it has not been claimed within a specified period or where no court order has been made in respect of it.

The Act allows for the expenses incurred in the conveyance, storage and safe custody of the property and in connection within its sale or otherwise in executing the Regulations to be deducted from the fund.

This report is requesting to increase the administrative charges to the Police Property Act Fund from a notional charge of £200,000 to £800,000 to ensure there is full cost recovery.

The DMPC is asked to approve:

(i) The increase in administrative charges to the Police Property Act Fund from a notional charge of £200,000 to £800,000 to ensure there is full cost recovery

(ii) That administrative charge will be subject to annual reviews with the aim of reducing costs in line with wider MOPAC budget reductions

1. Introduction and background

1.1. The Police (Property) Act 1897 and the Police (Property) Regulations 1997 enable the surplus from the sale of certain property and cash coming into the possession of police to be used, under paragraph 6(4)(C) of the Regulations, for charitable purposes. The cash and surplus from sale of property is paid into the Police Property Act Fund (PPAF)

1.2. The gross income paid into the PPAF in 2013/14 was £1.7m and in 2014/15 was £2.8m. MOPAC are using this to fund a number of projects in support of the 2013/16 Police and Crime Plan.

2. Issues for consideration

2.1. The Act allows for costs incurred in the storage and disposal of the property and the administration to be deducted from the fund.

2.2. A decision was taken that a notional charge of £200k would be applied each year as at the time full
costs would have depleted the fund.

3. Financial Comments

3.1. With gross income now averaging £1.6m per annum the MPS are seeking approval to fully charge the costs to the fund.

3.2. The full costs incurred by the MPS for the storage and disposal and administration of the fund totals
£800k per annum. The paper requests that full costs are applied to PPAF from 2015/16.

3.3. The cost of maintaining the PPAF will be reviewed annually with the aim of reducing costs from 2016/17.

4. Legal Comments

4.1. The recommendations set out in this report seek approval for monies within the MOPAC Police Property Act Fund to be used to offset costs of maintain ing the fund.

4.2. On the basis of the information provided, the Directorate of Legal Services supports the recommendations and for the report to proceed.

4.3. Full details are contained in the supporting paper.

5. Equality Comments

5.1. Any surplus costs after disbursement of administrative costs are intended to be used for charitable purposes. This money, whilst the responsibility of the DMPC to distribute, can be used across the community or support a wide range of diverse activities including those that would have a positive direct or indirect impact on crime and disorder.