MOPAC Budget Monitoring 2015 – Period 8

This paper summarises the period 8 financial monitoring and requests the DMPC approve budget movements and a transfers to reserves.

The DMPC is asked to
1. Note the period 8 financial monitoring position, and the actions being taken by the MPS to address the pressures;
2. Approve the budget movements set out in paragraph 2.3
3. Approve the transfer to reserves as detailed 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 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 In summary, a net overspend of £30.2m continues to be forecast for 2015/16, which is no change from last month. The net forecast overspend is mainly due to a £13.8m pressure within Supplies and Services, and a forecast shortfall in income of £18.2m. These are offset by a forecast underspend of £3m on Police Officer, Staff and PCSO Pay. There is reducing time available to correct this financial position.

2.2 The MPS is undertaking a number of actions to address this net overspend. They are continuing to review the posting of officers and PCSO’s to vacant funded posts and requiring all business groups within the MPS to implement management actions to bring expenditure in line with the budget.

2.3 There are a number of budget movements proposed – detailed in Appendix 1 – which realign the budget to reflect the transfer of staff to the Business Support Service SSCL contract, allocate funding for the 2015/16 pay award, and fund temporary costs of doctors and nurses in Occupational Health.

2.4 There is 1 proposed transfers to reserves of £23k – BAA Airwave Replacement

2.5 Appendix 1 sets out further detail of the period 8 financial monitoring position, the budget movements and the transfer to reserves.

2.6 The forecast outturn for capital expenditure is £264.3m compared to the 2015/16 Capital Programme of £264.6m. Further detail is shown in Appendix 1.

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.