AT A MEETING of the FINANCIAL AFFAIRS PANEL of the HAMPSHIRE POLICE AUTHORITY held at Westgate Chambers, Winchester on Tuesday 5 February 2002

PRESENT:

Mr M J Attenborough-Cox (Chairman); Councillor A Collett; Councillor J Fazackarley; Councillor S Hayes.

Also present: Mr P Robertson (Clerk); Mr J Pittam (Treasurer); Mr P Kernaghan (Chief Constable); Mr I Readhead (Deputy Chief Constable); Mr C Smith (Assistant Chief Constable); Mr M Coombes (Director of Finance); Chief Superintendent G Stogdon; Ms J Bodman (Corporate Services, Police HQ); Ms C Vagg and Mrs M Boyes (Clerk's Office).

Apologies: Mrs L Cawsey, JP; Mr R Palmer

166 MINUTES

The Minutes of the meeting of the Panel held on 12 December 2001 were confirmed as a correct record and signed by the Chairman.

167 MEMBERS' ALLOWANCES SCHEME

The Panel considered a report of the Clerk and Treasurer (Item 2 in the Minute Book) on proposals in relation to the establishment of a local allowance scheme for the Authority.

The Clerk introduced the report which referred to the key recommendations of the Independent Panel established by the Association of Police Authorities relating to police authority members' allowances. The report made specific proposals in relation to the establishment of a local scheme for the Authority and set out benchmarking data relating to members' allowances paid by other similar police authorities.

The Panel discussed the report and asked for small amendments to be made to the role of the police authority member (Appendix A), agreed that with these amendments the report would be submitted to the Police Authority at its meeting on 19 February 2002, attached to these Minutes.

RESOLVED:

That it be a RECOMMENDATION to the Authority:-

a) That the `job description' as set out in Appendix A be adopted;

b) That the new Scheme of Allowances for 2002/03 be adopted with effect from 1 April, 2002 as set out in Appendices B and D;


c) That provision for the additional estimated cost be made in the 2002/03 budget;

d) That a further report on a performance monitoring scheme for Members be presented to a future meeting of the Authority;

e) That the Clerk be authorised to amend the Scheme as appropriate to reflect consequential changes e.g. nationally agreed changes in petrol allowances and subsistence;

f) That the new allowance scheme be index linked to Police Support Staff Council cost of living increases, so rates are updated automatically each year.

168 REVENUE AND CAPITAL BUDGETS 2001/02 - THIRD QUARTER MONITORING REPORT

The Panel considered a report of the Chief Constable and Treasurer (Item 3 in the Minute Book) on the net revenue expenditure for the nine months to December 2001, which was slightly under profile.

The Director of Finance advised the Panel that the outturn for the year would be close to the revised budget approved at the last meeting of the Panel.

RESOLVED:

a) That the third quarter position on the revenue budget be noted.

b) That the position on the capital programme be noted and the updated capital programme shown in column [8] of Appendix 2 be approved.

169 POLICE AUTHORITY BUDGET MONITORING 2001/02

The Panel considered a report of the Treasurer (Item 4 in the Minute Book) on the financial performance of the budget for servicing the Police Authority for the period to 31 December 2001 and the expected outturn at the year end.

The Treasurer informed the Panel that the budget was likely to overspend by £47,000, this was due to additional work requiring increased activity by Authority members, and the Clerk. Some additional changes before the year end are anticipated, but would not present a problem with the overall Police budget outturn.

RESOLVED:

That the monitoring report be noted.

170 POLICE AUTHORITY'S OWN BUDGET - 2002/03

The Panel considered a report of the Treasurer (Item 5 in the Minute Book) on the budget for the Police Authority for 2002/03. The budget is presented as last year, but has been adjusted for the additional number of meetings and the new members allowances scheme.

RESOLVED:

That it be a RECOMMENDATION to the Authority that the 2002/03 revenue budget for servicing the Police Authority be approved.

171 INTERNAL AUDIT PROGRESS REPORT

The Panel considered a report of the Treasurer (Item 6 in the Minute Book) on the progress of work by internal audit included in the 2001/02 audit plan.

RESOLVED:

That the progress on the 2001/02 internal audit plan be noted.

172 POLICE SURGEONS SERVICES REPORT 2001/02

The Panel considered a report of the Chief Constable (Item 7 in the Minute Book) on the progress made in the first three months operation of the new contract for police surgeon services.

Members were advised of the early benefits that had been derived from the new contract.

RESOLVED:

That the report be noted.

173 DEVOLUTION OF PAY BUDGETS - PROGRESS REPORT

The Panel considered a report of the Chief Constable (Item 8 in the Minute Book) on the progress that had been made further to the devolvement of police and support staff pay budgets to Portsmouth and Southampton Divisions from 1 October 2001.

The Director of Finance outlined the report and the progress which had been made. There were now a number of areas that needed to be developed further before the full benefits of devolvement could be achieved and measured. Members were advised that the project team were committed to the process and to addressing the issues raised to date.


RESOLVED:

a) That the progress made in the devolvement of pay budgets to the Southampton and Portsmouth divisions be noted.

b) That a further report be submitted to the Panel in May.

174 NEW FINANCIAL SYSTEMS - PROGRESS REPORT

The Panel considered a report of the Chief Constable (Item 9 in the Minute Book) updating the Panel on the latest position of the implementation of both the Cfacs general ledger and the payroll system.

The Director of Finance informed Members that the payroll system ResourceLink was on target to go live in February 2002, and that parallel testing of the system was currently being undertaken.

RESOLVED:

That the report be noted.

175 SINGLE TENDER REPORT 2001/02 - QUARTER 4 (OCTOBER - DECEMBER 2001)

The Panel considered a report of the Chief Constable (Item 10 in the Minute Book) on contracts awarded under single tender procedures (2.8.3) Standing Orders on Contracts during the last quarter.

RESOLVED:

That the report and contracts awarded be noted.

176 FORWARD REVENUE BUDGET AND COUNCIL TAX PRECEPT 2002/03

The Panel considered a report of the Chief Constable and Treasurer (Item 11 in the Minute Book) on the Authority's forward revenue budget for 2002/03, including its Council Tax Precept for that year, and the Capital Programme for 2002/03 to 2005/06.

The Treasurer presented the report and highlighted the key areas. He indicated that the proposed net expenditure of £227.5m represented an increase of 7.5% (5.7% in 2001/02) compared with an increase in Total Standard spending of 3.4% (5.5% in 2001/02). Members noted that spending at this level would result in a proposed Council tax precept increase of 27.3% which reflected the tight grant settlement and would bring the precept at Band D to £75.15.

Representations had been made to the Association of Police Authorities (APA) and the Department of Transport, Local Government and the Regions (DTLR), on the provisional police finance settlement, however despite these there has been no material change in the final settlement figures. The result of the settlement has meant that there would be less to invest in new initiatives to meet specific local needs, necessary investment in information systems, and other new technology, less to maintain and improve the police estate and reduced ability to maintain services at an acceptable standard.

Members noted that the Government also announced the abolition of the Council Tax Benefit Subsidy Limitation Scheme, which would have required the Police Authority to contribute £28,000

The Chief Constable highlighted the Drug Arrest Referral Scheme to the Panel. The Police Authority Chairman and the Chief Constable have been invited to sign a declaration that Hampshire Police Authority will over several years match funding from the Home Office for this initiative. The Chief Constable has recommended that the Chairman sign up to the agreement but only for one year. The Chief Constable advised that he had drafted a caveat to the agreement pointing out that Hampshire Police Authority could not bind itself in respect of future budgetary periods. In essence, even in a climate of tight budgets, central government is seeking to `red circle' amounts for discreet purposes., thus displaying a total disregard for the overall budget available to local police authorities for local priorities.

RESOLVED:

That it be a RECOMMENDATION to the Authority that:-

a) the revenue budget as set out in Appendix 1 be approved;

b) the capital programme as set out in Appendix 5, including the additional item for the development of the Headquarters site, be approved;

c) the Police Authority's basic Council Tax for the year beginning 1 April 2002 be £75.15 at Band D;

d) the Police Authority's basic Council Tax for the year beginning 1 April 2002 for each band be as set out in Appendix 3;

e) precepts be issued totalling £48,159,992.49 on the billing authorities in Hampshire and the Isle of Wight requiring payment, in such instalments and on such dates set by them and previously notified to the Police Authority, in proportion to the tax base of each billing authority's area as determined by them and as set out in Appendix 3;

f) the medium term projection as set out in Appendix 4 be noted.

177 TREASURY MANAGEMENT AND BORROWING LIMITS

The Panel considered a report of the Treasurer (Item 12 in the Minute Book) on the annual Treasury Management Strategy and on the determination of borrowing limits as specified by Section 45 of the Local Government and Housing Act 1989.

RESOLVED:

a) That long-term fixed rate borrowing in the period to March 2003 should only be considered if it matches credit approvals and is available at rates below 4.5%;

b) That the arrangements for the investment of surplus funds described in paragraph 4 be approved;

c) That the overall borrowing limit be fixed at £3.6m for the year ending 31 March 2003;

d) That the short-term borrowing limit be fixed at nil for the year ending 31 March 2003;

e) That the proportion of interest payable at rates which can be varied by the lender or external factors be set at nil for the year ending 31 March 2003.

178 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 179 - Paragraphs 7,.8 and 9

Minute 180 - Paragraphs 1 and 12

Minute 181 - Paragraphs 9 and 11

179 TECHNICAL SERVICE UNIT - RELOCATION

The Panel considered a confidential report of the Chief Constable (Item 14 in the Minute Book) of the need for new Technical Service Unit (TSU) premises.

The Assistant Chief Constable (SO) and Inspector G Aston gave a presentation to the Members of the Panel on the role of the TSU and the problems highlighted in relation to equipment usage and storage, health and safety and the general unsuitability of the existing premises.

In supporting the proposal Members asked that the project appraisal explore the possibility of a more centrally located facility and that consideration be given to freehold as well as leasehold premises.

RESOLVED:

a) That the urgent requirements for alternative TSU accommodation in 2002/03 be noted;

b) That the proposal to move the TSU to new premises in 2002/03 be agreed in principle;

c) That the Panel note that the final approval will only be granted subject to a full project appraisal being considered and specific funding provision being found.

180 FORFEITURE OF PENSION - POLICE PENSIONS REGULATIONS 1987

The Panel considered a confidential report of the Clerk (Item 15 in the Minute Book) on matters relating to a case involving forfeiture of pension.

The Clerk advised the Panel that Counsel's advice to the Authority was that there were no grounds to challenge the decision of the Crown Court to reinstate the pension of a former police officer.

RESOLVED:

That the Police Authority note the decision not to appeal.

181 TRANSITIONAL RENT ALLOWANCE - IMPLICATIONS OF THE BROWN -V- SOUTH YORKSHIRE CASE

The Panel considered a confidential report of the Chief Constable (Item 16 in the Minute Book) on a recent court case. This case determined the application of the regulations for the payment of transitional rent allowance and compensatory grant.

RESOLVED:

That the financial implications of the Brown -v- South Yorkshire case and the costs of settling the claims received, which are estimated at £449,000, be noted.

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