MOPAC Budget Monitoring 2015 – Period 6

This paper summarises the period 6 financial monitoring and requests the DMPC approve 7 budget movements and 6 transfers to/from reserves.

The DMPC is asked to
1. Note the period 6 financial monitoring position;
2. Approve the budget movements as set out in paragraph 2.2.
3. Approve the transfers to and from reserves as detailed in paragraph 2.3

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, an overspend of £27.2m is forecast for 2015/16. The net forecast overspend is mainly due to pressures within Supplies and Services, £14.8m, and a forecast shortfall in income of £17.4m. These are offset by a forecast underspend on PCSO Pay of £3.3m.

2.2 There are 7 proposed budget movements this month.

• Allocation to fund the Police Officer 1% pay award from 1 September 2015 from Centrally Held, £7.8m
• A one-off, non-recurring realignment within Digital Policing to reflect lower pay costs (arising from voluntary exits) to meet savings target held against Supplies and Savings, £1.3m
• Removal of the Proceeds of Corruption Unit following transfer of the function to the National Crime Agency, £1.2m.
• Additional Partnership income supporting various Borough Command Units activity, £0.6m
• Realignment of Royalty and Specialist Protection budgets to reflect that Special Escort Allowance is no longer paid, increase to overtime budget, £0.7m
• Additional Innovation Fund grant income, £0.8m, to fund Tackling Violence project in MOPAC
• Within Property Services a reallocation of facilities management planned works budget, £0.5m, to furnishing services.

2.3 There are 6 proposed transfers to/from reserves. The net value is £352.5k, the breakdown is as follows:
• Transfer to reserves of £23k – BAA Airwave Replacement
• Transfer from reserves £158.8k – Proceeds of Crime Act Reserve
• Transfer from reserves £130k – Major Change Programme Fund
• Transfer from reserves £86.7k – Partnership & Sponsorship

2.4 Appendix 1 sets out further detail of the period 6 financial monitoring position, budget movements and transfers to and from reserves.

2.5 The forecast outturn for capital expenditure is £265.1m 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.