Archived decisions
AT A MEETING of the FINANCIAL AFFAIRS PANEL of the HAMPSHIRE POLICE AUTHORITY held at Westgate Chambers, Winchester on Wednesday 12 December, 2001
PRESENT:
Mr. M.J. Attenborough-Cox (Chairman); Councillor A. Collett; Mrs. L. Cawsey, JP; Councillor S. Hayes; Mr. R. Palmer.
Also present: Mr. P. Kernaghan (Chief Constable) Mr. J. Pittam (Treasurer); Mr. J. Pattison (Clerk's Office) Mr. M. Coombes (Director of Finance, Police HQ); Chief Supt. G. Stogdon; Ms. J. Bodman (Corporate Services, Police HQ); Mr. N. Howell (Director, I.T. Services, Police HQ); Mrs. M. Boyes and Ms. C. Vagg (Clerk's Office).
153 MINUTES
The Minutes of the meeting of the Panel held on 30 October, 2001 were confirmed as a correct record and signed by the Chairman.
154 DISTRICT AUDIT ANNUAL AUDIT LETTER
The Panel considered a report of the Chief Constable and Treasurer (Item 2 in the Minute Book) on the key issues identified by the District Auditor including the recommendations contained within the report.
Representatives of District Audit presented the Annual Audit Letter to the Panel and advised that a report would be available at the end of January 2002 on Basic Command Units (BCUs). Recruitment had not been reported upon as a report was being produced by Superintendent Thomas. District Audit advised the Panel that they were working alongside this recruitment review and had commented on and challenged an early copy of the report.
The Chairman requested that the Panel receive a copy of the BCU report separately once it had been considered by the ACPO team in January 2002. The Auditor's report concluded that the Authority's Best Value Performance Plan (BVPP) was an impressive document that complied in all significant respects with statutory requirements. Recommendations raised had been subsequently addressed in the Annual Report. The Best Value Review Programme was being delivered well, and the Authority had received good HMIC inspections.
The Auditor recommended that the Authority continues to develop an updated Consultation Strategy and associated measures of achievement. He indicated that resource allocation needed to be aligned with priorities over 3 -5 years in order to deliver the strategic aims and significant progress was being made in performance management. The areas for attention were Performance Management in central departments, Policy Development and Implementation Process and Community Safety on performance outcome.
The Chief Constable further advised that there would be designated policy officers with responsibility to ensure changes were being made where there was a policy change. He added that the Deputy Chief Constable was carrying out performance reviews across departments to reflect what was happening in divisions. The Estates Strategy Working Group was currently looking at a draft copy of the Estates Strategy following which the document would be available to all Members of the Authority in either January or February.
Pension liabilities were highlighted by the Auditor who recommended that the Authority should consider whether present reserves were sufficient to meet potential pension liabilities in the future. An unqualified opinion on the 2000/01 Statement of Accounts had been issued and there were no further matters to draw to Members' attention.
The Auditor thanked the Chief Constable for the co-operation of his staff and especially that of the Best Value Team.
RESOLVED:
That the report be noted and the content of the Annual Audit Letter be recommended to the Authority for acceptance.
155 BUDGET PROCESS AND TIMETABLE
The Panel considered a report of the Treasurer and Chief Constable (Item 3 in the Minute Book).
The Treasurer presented a report to the Panel which suggested a timetable and process for budget consideration for this and future years. The aim of the report was to engage the Authority at an early stage to reinforce Members ownership of the final decisions in relation to the budget process. The Panel discussed the dates of the future meetings in detail and agreed that it was important that all Members were fully engaged in the process to ensure that the Authority fulfils its role and considers issues arising from the Police Reform Programme.
RESOLVED:
That the budget cycle be dealt with as set out in the report.
156 REVISED REVENUE BUDGET 2001/02
The Panel considered a report of the Chief Constable and Treasurer (Item 4 in the Minute Book) on the revised Revenue Budget for the current year, following the budget monitoring report at the Panel's last meeting.
The report updated the revised budget by identifying areas of reduced expenditure so that the overall net expenditure was at a level that would not require drawing on reserves except as far as Police pensions were concerned. The Treasurer advised that the Home Secretary had confirmed that extra resources of £30m had been allocated to Police forces to help meet the costs of additional policing duties in the wake of the 11 September attacks. £23m would go to the Metropolitan Police Service and the City of London Police and the remaining £7m would be allocated on the basis of a detailed assessment of any legitimate costs incurred by other forces. The Chief Constable advised the Panel that the £7m would be divided amongst 40+ police services and that therefore this was a token gesture.
RESOLVED:
That the revised budget as set out in Column 3 of Appendix A to the report be approved.
157 FORWARD BUDGET 2002/03 - PRELIMINARY FIGURES BASED ON CURRENT POLICIES
The Panel considered a report of the Chief Constable and Treasurer (Item 5 in the Minute Book) which provided the Panel with a preliminary assessment of the likely net expenditure on services in 2002/03 based on current policies. The figures were based on the best estimates available at the time, but these were subject to substantial change following the provisional grant settlement and in particular, as indicated in the report, the decisions taken upon levies funded centrally and on specific grants. There may be further changes before the final budget and precept report to the Authority in February 2002.
The Treasurer gave a presentation to the Panel on the impact of the provisional police funding settlement for 2002/03 which results in an overall 6.1% increase. However, the increase for police forces was only 2.8% after the cost of NCS/NCIS, specific initiatives and centrally provided services had been met. The overall increase of 3.5% for Hampshire would not be enough to meet current policies and a significant increase in council tax was inevitable.
Considerable discussion took place by the Panel on the revenue support grant announcement and the likely impact on the Force. Representations on the provisional announcement were required by 4 January 2002 for the Association of Police Authorities (APA) and by 10 January 2002 for the Department of Transport, Local Government and the Regions (DTLR) and the Treasurer was authorised to submit the Authority's response as set out in the presentation and discussion.
Additional special grants had been provided for - the crime fighting fund, rural policing and Airwave to be spent in these specific areas. Although they were a benefit, they would not assist with the overall budget.
The Chairman thanked the Treasurer for presenting the information to the Panel and for the detail included within it and confirmed that the Members felt the settlement was unacceptable as the Authority had substantial expenditure to meet in the coming year. The current policies budget, or the cost of continuing the existing service, would be £222.5m, an increase of £10.9m (5.2%). This would result in a 14.5% increase in council tax based on current information and the provisional settlement.
The Panel would be in a better position at its next meeting to determine the likely budget and council tax for 2002/03, when the final settlement was available and the budget and grant figures had been confirmed.
RESOLVED:
(i) That the preliminary estimate of the current policies budget for 2002/03 be noted subject to further revision of detailed figures and analysis of the final revenue support grant settlement at the next Panel meeting.
(ii) That representations be made to the APA and DTLR on the provisional settlement as set out in the Treasurer's presentation.
158 IT STRATEGY - PROJECTED 5 YEAR RESOURCE PLAN
The Panel considered a report of the Chief Constable (Item 6 in the Minute Book) on the potential impact on resources - financial, staffing and accommodation - of the present demands for new information technology over the next 5 years to meet the aims of the force strategy. The Chairman considered the paper to be very helpful with the most important details centred in Appendix 1 for 2002/03 . He stressed that investment in IT should create efficiency.
The Chief Constable advised that some initiatives had been previously delayed and that these were now having to be paid for, for example Holmes 2. The costs would enhance the Force's effectiveness but may not always achieve efficiency savings.
The Director of IT Services advised Members that the department was currently running with a number of vacancies and that they were currently utilising consultants to run projects. Members commented on the staff numbers currently employed within the Department and questioned the likelihood of being able to recruit the 11 new staff required. They also asked whether the IT Strategy was tackling issues to enable police officers to be more effective with IT.
The Director of IT Services further advised the panel that an integration programme was currently in place and that everything possible would be done to ensure that the success rate on recruitment was 100%. He indicated that the Force was currently the second lowest in the region on spend per head on IT.
RESOLVED:
(i) That the report be noted and the projected IT resourcing as set out in Appendix 1 be accepted.
(ii) That the Panel approve the £2.7m expenditure in principle, subject to review in January 2002 for expenditure in 2002/03.
159 FORWARD BUDGET 2002/03 - PROPOSALS FOR ADDITIONAL EXPENDITURE
The Panel considered a report of the Chief Constable and Treasurer (item 7 in the Minute Book) on both the priorities for growth identified by the Chief Constable to meet future requirements and also the need to increase some of the Authority's reserves, particularly in the areas of pensions and the capital programme. The report set out proposals for additional expenditure that the Chief Constable considered necessary to provide an efficient and effective policing service. The Chief Constable advised the Panel that the Force's Resource Management Board (RMB) had scrutinised the items covered within the report. He was satisfied with the priorities, and all of them should be brought forward to the Panel for consideration.
The Members discussed in detail the content of Appendix 1 of the Report and the Chairman concluded that additional discussions would be required at the next Panel meeting before the proposals for additional expenditure were approved. He suggested that other sources of funding might be pursued for one-off items of expenditure which should not be added permanently into the forward budget. He also suggested that the list be revised within an overall sum of £5m growth for further consideration.
RESOLVED:
(i) That the Panel reconsider its acceptable growth proposals in 2002/03, subject to the final outcome of the settlement, and with a view to limiting permanent growth in expenditure to a maximum of £5m.
(ii) That further consideration be given to the level of reserves at the next meeting of the Panel.
(iii) That the Panel's recommendation to the Authority on the level of council tax increase that is acceptable, given its consideration of growth proposals and the final revenue grant settlement, be considered at its next meeting.
160 NEW FINANCIAL SYSTEMS - PROGRESS REPORT
The Panel considered a report of the Chief Constable (Item 8 in the Minute Book) updating the Panel on the latest position of the implementation of both the Cfacs general ledger system and the payroll system.
RESOLVED:
That the report be noted.
161 EXCLUSION OF THE PRESS AND PUBLIC
RESOLVED:
That by virtue of the Paragraphs of Part I of Schedule 12A of the Local Government Act 1972, as set out below, the press and public be excluded from the meeting.
Minute 162 - Paragraphs 8 and 9
Minute 163 - Paragraphs 1 and 12
Minute 164 - Paragraphs 1 and 12
Minute 165 - Paragraph 1
162 HOOK COMMUNITY POLICE OFFICE
The Panel considered a confidential report of the Chief Constable (Item 10 in the Minute Book) outlining a requirement to expand the rural policing facilities at Hook in North East Hampshire. Superintendent Apps presented the report and advised Members on the scheme design and the joint agency initiative of the new facilities.
RESOLVED:
(i) That it be a RECOMMENDATION to the Police Authority that the project be approved and that the sum of £396,000 be included in the capital programme for 2002/03.
(ii) That it be noted that the capital receipts realised from the sale of the properties were estimated to exceed the initial capital outlay.
(iii) That approval to progress the specification to tender and to enable the seeking of the necessary planning and other statutory approvals be approved.
163 PENSIONS DISPUTE/DEBT RECOVERY
The Panel considered a confidential report of the Clerk (Item 11 in the Minute Book) bringing Members up to date with a pension dispute and debt recovery proceedings in respect of a police officer. The report set out the background to the problem and the resolution of the debt recovery proceedings in accordance with the previous delegation of authority to the Clerk.
RESOLVED:
That the outcome of the debt recovery action be noted.
164 FORFEITURE OF PENSION - POLICE PENSIONS REGULATIONS 1987
The Panel considered a confidential report of the Clerk (Item 12 in the Minute Book) on matters relating to a case involving forfeiture of pension. Mr. Pattison advised the Panel that the transcript of the proceedings had been submitted to a Barrister for his opinion and to ascertain whether the Authority should appeal.
RESOLVED:
(i) That the unsatisfactory result of the appeal be noted and the Chief Constable's approach to the Home Secretary for further guidance in future cases be endorsed.
(ii) That the Police Authority authorise the Clerk to determine whether or not the Police Authority should appeal this decision following receipt of Counsel's opinion.
165 PENSION APPEAL
The Panel considered a confidential report of the Treasurer (Item 13 in the Minute Book) on a complaint under Stage 2 of the Internal Dispute Resolution Procedure (IDRP) of the Police Pension Scheme (PPS).
After carefully considering all the written submissions that were made, the Panel dismissed the appeal.
[SUMMARY OF A MINUTE WHICH CONTAINS EXEMPT INFORMATION]
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