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

PRESENT:

Mr. M.J. Attenborough-Cox (Chairman); Mrs. L. Cawsey JP; Councillor A. Collett; Mrs. R. Atkinson.

Also present: Mr. E. Knudsen (Treasurer's Department); Mr. M. Coombes (Director of Finance); Chief Supt. G. Wyeth (Divisional Commander, Southampton); Mrs. M. Boyes and Ms. C. Vagg (Clerk's Office).

220 APOLOGIES

Apologies were received from Councillor S.A. Hayes, Councillor P. Heath, the Treasurer and the Clerk.

221 DEVOLUTION OF PAY BUDGET TO SOUTHAMPTON AND PORTSMOUTH DIVISIONS - PERSONAL UPDATE BY CHIEF SUPT. WYETH

The Panel received a verbal update on the experience to date on devolved police and support staff pay budgets in the Southampton Basic Command Unit (BCU). Chief Supt. Wyeth gave a detailed explanation on how devolved budgets worked on a practical day to day level within the Southampton BCU. He stressed that the appointment of a Divisional Finance Manager to the executive team had provided clear focus to the process and should be a pre-requisite for any future devolvement of budgets. He then detailed the approximate monthly savings achieved and the operational benefits that had accrued to the Division. The Director of France gave an update on the extension of the pilot to the North East Hampshire Division and how this was piloting the approach whereby the finance manager input was provided from Headquarters.

Members then asked various questions on aspects of the presentation and Chief Supt. Wyeth responded accordingly.

222 MINUTES

The Minutes of the meeting of the Panel held on 16 September, 2002 were confirmed as a correct record and signed by the Chairman.

Matters arising:

Minute No. 215 - Medium Term Projection

Members sought clarification about the consideration of the medium term projection and the Chief Constable's list of no choice items by the Policy Group. The Chairman confirmed that the decision to refer this item to the Policy Group had been suggested by the Panel and that it was a good forum for informal discussion between the Chairman of the Authority and the Chairmen of other Panels.

223 CHAIRMAN'S REPORT

The Chairman reported orally on a recent meeting with the Rt. Honourable John Denham MP at the Home Office that he had attended together with the Chairman of the Authority, the Treasurer and the Clerk. They had discussed with the Minister the Authority's concerns in relation to the proposed formula grant distribution for 2003 although he had been unable to confirm anything as the consultation process was still ongoing.

It was considered appropriate at the time to raise a number of other issues with the Minister including pensions, best value and efficiency savings upon which the Minister welcomed comments and observations. A letter was being drafted to the Minister from the Treasurer on behalf of the Authority to outline the discussions that were held, and a copy of this correspondence would be circulated to the Panel in due course.

The Chairman then brought to the attention of the Panel two matters that may affect the Authority next year; compensatory grant and pension reserves. In respect of compensatory grant he indicated that this was generally paid in arrears although District Audit had recently advised that the Audit Commission are suggesting that it should be treated as an accrual. Members raised concerns in relation to this matter and asked to be kept informed as spreading the cost over a number of years would cause significant burdens on the budget. With regard to pension reserves the Chairman advised that the draft District Audit Management Letter refers to having an adequate pensions provision as opposed to funds being held within the general reserve. Mr. Knudsen indicated that he would shortly be attending a Police Authority Treasurer's meeting and would advise Members of any update arising on this matter.

224 REVENUE BUDGET AND CAPITAL PROGRAMME - SECOND QUARTER MONITORING AND REVISED BUDGET 2002/03

The Panel considered a report of the Chief Constable and Treasurer (Item 4 in the Minute Book) on the second quarter monitoring of the revenue budget which indicated that there was a small underspend against profile and that this position was satisfactory.

The Director of Finance introduced the report and set out the position on capital expenditure against the approved programme for the current year and advised that additional resources would be required in the 2003/04 if the programme as currently presented was to go ahead. He confirmed that anticipated capital receipts would be achieved due to the sale of police houses are reported in the capital programme.

RESOLVED:

(a) That, the second quarter monitoring position on both the revenue budget and the capital programme be noted.


(b) That, the revised budget for the current year as set out in column (4) of Appendix 2 be approved.


(c) That, the updated capital programme for the current year as set out in column (6) of Appendix 4 be approved.


(d) That, the position on funding the capital programme for 2003/04 be noted.

225 POLICE AUTHORITY'S BUDGET 2002/03 - FIRST HALF YEAR

The Panel considered a report of the Treasurer (Item 5 in the Minute Book) setting out the financial performance of the budget for servicing the Police Authority for the period to 30 September, 2002. The report also included a forecast for the outturn for the year.

Mr. Knudsen introduced the report and drew the attention of Members to the projected overspend of £75,000 due mainly to the increased activity of the Authority, members allowances from 2001/02 paid in 2002/03, and the additional costs of community consultation.

The Members were concerned at the level of spending for community consultation groups and asked that the matter be discussed in more detail by the Chairman of the Panel, the Chairman of the Authority and the Chairman of the Community Affairs Steering Group.

RESOLVED:

(a) That, the position on the expenditure for the first half year 2002/03 for servicing the Police Authority be noted.


(b) That, the Chairman meet with the Chairman of the Authority and the Chairman of the Community Affairs Steering Group in relation to the consultation budget for 2002/03 and 2003/04.

226 INTERNAL AUDIT PROGRESS REPORT

The Panel considered a report of the Treasurer (Item 6 in the Minute Book) updating the Panel on the progress of work by internal audit included in the 2002/03 audit plan.

Mr. Knudsen introduced the report and advised Members on the variations made up to 30 September, 2002 which amounted to a net increase of 4 days. Based on the reviews completed during the period the overall opinion remains that the control environment is sound.

RESOLVED:

That the progress on the 2002/03 internal audit plan be noted.

227 SINGLE TENDER AND EXCEPTIONS REPORT QUARTER 3 (JULY-SEPTEMBER, 2002)

The Panel considered a report of the Chief Constable (Item 7 in the Minute Book) on the contracts awarded compliant with Standing Orders on Contracts 2.8.2. The report contained the information on single tender contracts awarded for the period 1 July to 30 September, 2002.

RESOLVED:

That the report be noted.

228 PREMISES IMPROVEMENT FUND APPLICATION (CHALLENGE FUND)

The Panel considered a report of the Chief Constable (Item 8 in the Minute Book) on the Home Office funding for modernisation of the police estate as well as communications and technology.

The Director of Finance introduced the report and asked the Panel to formally endorse the Premises Improvement Fund (PIF) application submitted to the Home Office in October although it was noted that no decision had yet been received.

RESOLVED:

(a) That, the two bids as outlined in the report be formally approved.


(b) That subject to capital grant(s) being awarded a robust business case be developed in relation to each proposal to ensure that all bid criteria are adequately addressed.

229 EXCLUSION OF THE PRESS AND PUBLIC

RESOLVED:

That, by virtue of Paragraphs 7, 8 and 9 of Part 1 of Schedule 12A of the Local Government Act 1972, the press and public be excluded from this part of the meeting.

230 HOOK COMMUNITY POLICE STATION

The Panel considered a confidential report of the Chief Constable (Item 11 in the Minute Book) on progress with regard to the Hook Community Police Station project and requesting delegated authority for the Chief Constable, in consultation with the Chairman of the Panel and the Estate Working Group, to agree a revised budget.

The Director of Finance introduced the report and drew the attention of Members to possible reductions in specification in several areas which had been discussed with the Divisional Management Team. Approval was being sought for higher costs than originally anticipated. In addition, discussions with the local district council had resulted in further issues for consideration which was likely to add four weeks to the project timetable.

RESOLVED:

That, approval be given under delegated powers for the Chief Constable, in consultation with the Chairman of the Panel and the Estate Working Group, to agree the final building specification and revised budget.

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