Archived decisions
AT A MEETING of the FINANCIAL AFFAIRS PANEL of HAMPSHIRE POLICE AUTHORITY held at The Basing Room, Castle Hill Avenue, Winchester on Tuesday 11 February, 2003
PRESENT:
Mr. M.J. Attenborough-Cox (Chairman); Mrs. R. Atkinson; Councillor A. Collett; Councillor J. Fazackarley; Councillor S.A. Hayes; Councillor P. Heath.
Also present: Mr. P.C.B. Robertson (Clerk); Mr. J. Pittam (Treasurer); Mr. M. Coombes (Director of Finance); Chief Supt. G. Stogdon (Corporate Services); Ms. K. Huck (Finance Department); Ms. C. Vagg and Mrs. M. Boyes (Clerk's Office), Mr E Knudsen (Treasurer's Department ) for Minute 261.
245 APOLOGIES
Apologies were received from Mrs. L. Cawsey, JP.
246 MINUTES
The Minutes of the meeting of the Panel held on 17 January, 2003 were confirmed as a correct record and signed by the Chairman.
247 TREASURY MANAGEMENT CODE OF PRACTICE
The Panel considered a report of the Treasurer (Item 8 in the Minute Book) on the revised treasury management financial regulations and a revised treasury management statement. The Authority's financial regulations require full compliance with the Chartered Institute of Public Finance and Accountancy's Code of Practice for Treasury Management in Local Authorities. The CIPFA undertook a comprehensive review of the code and has published a new version, now called Treasury Management in the Public Services (Code of Practice). The key recommendations within the new code are adopted.
RESOLVED:
(i) That the revised financial regulations for treasury management be adopted.
(ii) That the updated treasury policy statement be approved.
248 TREASURY MANAGEMENT AND BORROWING LIMITS
The Panel considered a report of the Treasurer (Item 9 in the Minute Book) on the annual treasury management strategy and the borrowing limits as specified by Section 45 of the Local Government and Housing Act 1989 (being limits on total external borrowing, temporary borrowing and the proportion of interest paid at variable rates).
The relatively high level of the authority's balances means that short-term borrowing is not required. A limit of nil for short-term borrowing is suggested as in previous years.
RESOLVED:
(i) That the long-term fixed rate borrowing in the period to March, 2004 should only be considered if it matches credit approvals and is available at rates of 4.75% or below.
(ii) That the arrangements for the investment of surplus funds described in paragraph 4 be approved.
(iii) That the overall borrowing limit be fixed at £5.0m for the year ending 31 March, 2004.
(iv) That the short-term borrowing limit be fixed at nil for the year ending 31 March, 2004.
(v) 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, 2004.
249 HOUSING PROVISION FOR POLICE STAFF
The Panel considered a report of the Chief Constable (Item 10 in the Minute Book) on a proposal that has been made by a local housing association to allow the Authority to support the provision of rented accommodation for police staff at affordable rents. The report recommends approval of the scheme and the inclusion of £250,000 in the capital programme for 2003/04 to cover the provision of about six dwellings.
The report had also been considered by the Personnel Panel at its meeting on 28 January.
The Director of Finance introduced the report and clarified the issue of nomination rights to Members.
The Panel sought clarification on the NHS housing co-ordinator whose work to date had been elsewhere other than in Hampshire and the Isle of Wight. The Director of Finance confirmed that the co-ordinator would be directed to be more proactive within Hampshire and the Isle of Wight.
RESOLVED:
(i) That the sum of £250,000 be included in the draft capital programme for 2003/04 to provide nomination rights for the provision of rented accommodation by a registered social landlord for the benefit of police staff.
(ii) That approval be given to enter into a pilot trial with Kingfisher to market test the validity of the proposed nomination rights.
(NOTE: Councillor P. Heath declared a personal interest in relation to this item).
250 SINGLE TENDER AND EXCEPTIONS REPORT QUARTER FOR OCTOBER TO DECEMBER, 2002
The Panel considered a report of the Chief Constable (Item 11 in the Minute Book) on the contracts awarded compliant with Standing Orders on Contracts 2.8 single tender applications and exceptions awarded for the period 1 October to 31 December, 2002.
The Director of Finance clarified the provision of an occupational health physician to the Panel.
RESOLVED:
That the report be noted.
251 END OF PROJECT REPORTS - FINANCIAL SERVICES AND SYSTEMS
The Panel considered a report of the Chief Constable (Item 12 in the Minute Book) formally bringing to a close two elements of the project to review financial services and systems initiated by the Authority at its meeting on 2 June, 1998. The three areas subject to this project were police pensions administration, general ledger and exchequer functions and payroll, all of which were provided previously by Hampshire County Council.
The Director of Finance introduced the report and advised the Panel that the budget projections for this project have been met and the anticipated savings had been realised.
RESOLVED:
(i) That the Panel approve formal project closure as far as the general ledger and exchequer part of the project is concerned.
(ii) That the Panel receive a further report on the payroll implementation once Phase 2 is completed.
252 POLICE OVERTIME
The Panel considered a report of the Chief Constable (Item 13 in the Minute Book) proposing a target for overtime and setting out the required monitoring arrangements and other matters relating to managing down overtime. The Police Reform Legislation included the need to reduce police overtime by 15% over three years from the 1 April, 2003.
The Director of Finance introduced the report and advised the Panel that regarding the announcement from the Government office for the South East and the Home Office that targeted grants would be given to the BCUs next year, with the total amount being allocated to Hampshire in the order of £1.25m. In normal circumstances this additional funding would allow proactive policing using overtime. However, clarification was now being sought from the Home Office as to how this will affect the target reduction in overtime. HMIC will also be monitoring the target in the efficiency plan. Monitoring of the planned reduction in police overtime will be included in the form of normal quarterly monitoring reports provided to the Panel.
The Panel concluded that it might be difficult to achieve the target reduction in overtime, if for example a major crime investigation or major incident occurred within Hampshire and the Isle of Wight which would require substantial police overtime.
RESOLVED:
(i) That police overtime be reduced by 15% over the three years from 1 April, 2003 with the reduction being 5% each year over those three years.
(ii) That the target for years 2 and 3 be reviewed once the actual figures for year 1 are known.
(iii) That the Panel receive quarterly monitoring reports on performance against target as part of the quarterly revenue budget monitoring report.
253 INTERNAL AUDIT PROGRESS REPORT
The Panel considered a report of the Treasurer (Item 14 in the Minute Book) updating the Panel on the progress of work by internal audit included in the 2002/03 audit plan. 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.
254 REVENUE BUDGET AND CAPITAL PROGRAMME - THIRD QUARTER MONITORING REPORT 2002/03
The Panel considered a report of the Chief Constable and Treasurer (Item 3 in the Minute Book) providing a third quarter monitoring statement for both the revenue budget and the capital programme for the current year.
The Director of Finance introduced the report and advised the Panel that recently there had been more retirements than anticipated which would need careful monitoring of the police pensions budget. The report showed a small underspend against profile on the budget at 31 December 2002.
RESOLVED:
That the third quarter monitoring position on both the revenue budget and the capital programme be noted.
255 DEVELOPMENT AT POLICE HEADQUARTERS
The Panel considered a report of the Chief Constable (Item 4 in the Minute Book) on the fees necessary to progress the feasibility study on the development of the headquarters building. The Director of Finance introduced the report and advised the Panel that in order to undertake the necessary preliminary work on the proposals discussed at the Authority's estate working group some fee expenditure of £50,000 would be necessary in order to prepare a scope of works and cost estimate.
The panel sought clarification on the need to employ outside consultants. The Director of Finance responded that the specialism needed to be bought in as these skills were not available from within the Constabulary. He did confirm that a tight control would be maintained on the work that they were required to carry out. He further confirmed that under delegated responsibility some agency staff/consultants were employed routinely throughout the Force and that this would not normally be reported to the Panel.
RESOLVED:
That the Panel approve a sum in the order of £50,000 to cover the fees necessary to complete the initial feasibility study on the headquarters development.
256 POLICE AUTHORITY'S REVENUE BUDGET 2002/03 - THIRD QUARTER MONITORING
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 the 31 December, 2002. The report also includes a forecast for the outturn for the year.
RESOLVED:
That the position on the expenditure for the third quarter 2002/03 for servicing the Police Authority be noted.
257 COUNCIL TAX PRECEPT 2003/04
The Panel considered a report of the Chief Constable and Treasurer (Item 6 in the Minute Book) on the forward budget for next year which covers some late changes in additional specific grants, and makes recommendations in respect of the council tax precept.
The Treasurer introduced the report and advised that the settlement had not made any substantial difference to the overall budget. He further advised that the District Auditor would qualify the accounts if an accrual for compensatory grant was not made in this year and that, could have the effect of a low score with external assessors in the future. No response had yet been received from the Auditor in relation to police pensions. The accrual in the 2003/04 budget for compensatory grant could provide flexibility in the 2004/05 budget for pensions.
The Director of Finance drew members' attention to the specific grants totalling £1.23m to be made directly to basic command units (BCU). These were intended to give BCU commanders greater freedom to work within the context of the national policing plan with other key agencies in tackling crimes undermining communities' feelings of safety including street crime, anti-social behaviour and burglary. Assistant Chief Constable Jacobs had asked divisional commanders to put together a plan on how they intend to spend this money that has been allocated to them to ensure that best value is obtained. The normal way that BCU's would use the majority of additional funding would be in proactive policing which inevitably means additional overtime. The Chief Constable is therefore seeking advice from the Home Office on how this will impact on the requirement to reduce police overtime by 15% over the next three years. Local authority partners have also advised that grants that they had received in previous years have now been reduced and they will be making applications to the local BCU commanders to access the new funding in order to maintain current initiatives. Funding also was being given to Portsmouth and Southampton BCUs by the Police Standards Unit (PSU) to fund specific policing operations to enable good practice to be researched, with the results disseminated around the Country.
The Panel discussed at length the financial settlement from Central Government and the funding that had been given to the basic command units. Although welcomed, the late announcement of these grants created difficulties to the Authority in managing the budget process in a structured manner, with funding going directly to BCU's. The Panel agreed the accrual for compensatory grant but regretted that the timing placed pressure on the budget to satisfy audit requirements. In conclusion the Panel felt that it had no option but to agree the rise in council tax, as the alternative would mean having to cut the current services that are provided to the residents of Hampshire and the Isle of Wight.
The Director of Finance agreed to provide more detail on the operational aspects of the specific funding available to the Southampton and Portsmouth BCUs from the PSU.
In conclusion the Panel felt that they had exercised their responsibility correctly in scrutinising in detail the budget for next year that there would be a large council tax increase. It was considered regrettable that the APA had not taken a more positive stand with the Home Office in relation to Government policy which could be having an effect on safety and security for residents within England and Wales. They concluded that if police authorities were not prepared to increase council taxes then law and order could suffer throughout the Country.
The Panel agreed to write to the chairmen of other police authorities and the APA regarding the ability of police authorities to maintain safe and secure places for their residents which was only possible due to high council tax increases. This had arisen from the Government making a conscious decision to move funds to the north and midlands from the south. Whilst the Panel were not happy to impose high council tax rises to the residents of Hampshire and the Isle of Wight, funds needed to be raised to maintain the police force within the two counties and sadly this fell to the council tax payer.
RESOLVED:
That it be a RECOMMENDATION to the Authority that:
(i) The revenue budget for 2003/04 (as set out in Appendix 1 to the report) be approved.
(ii) That the Police Authority's basic council tax for the year beginning 1 April 2003 be £97.29 at Band D.
(iii) The Police Authority's basic council tax for the year beginning 1 April for each band be as set out in Appendix 3 to the report.
(iv) That the precepts to be issued, totalling £62,796,003.67 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 to the report.
258 CAPITAL PROGRAMME 2003/04 TO 2006/07
The Panel considered a report of the Chief Constable and Treasurer (Item 7 in the Minute Book) on the capital programme for the period to 2006/07 which can be supported by available resources.
The Director of Finance introduced the report and advised the Panel that the premises improvement fund had been secured from the Home Office and the programme included some exceptional items relating to the Airwave project. He updated the detailed figures for the recent grant decision in respect of aircraft equipment, including forward looking infra red (FLIR).
The annual programme of vehicle replacement is subject to fluctuation depending on replacement of vehicles. The spend within the programme for the next year is £2.4m which reflects higher prices and specifications for some vehicles particularly the multi-role vehicles where the latest version of the vehicle used previously does not meet the demands as far as size and pay load are concerned.
The inclusion of land at Daedalus and on the Isle of Wight in the forward capital programme is not likely to happen, if at all until after 2006/07 at which time consideration would need to be given to reinstatement in the programme. Supplementary credit approvals (SCAs) are still to be confirmed.
RESOLVED:
That it be a RECOMMENDATION to the Authority that the capital programme for the period 2002/03 to 2006/07 as set out in the Appendix 1 of the report be approved.
259 EXCLUSION OF THE PRESS AND PUBLIC
RESOLVED:
That, by virtue of Paragraphs 7, 8 and 9 of Part I of Schedule 12A of the Local Government Act 1972 the press and public be excluded from this part of the meeting.
260 TECHNICAL SERVICE UNIT - RELOCATION
The Panel considered a confidential report of the Chief Constable (Item 16 in the Minute Book) providing an update of the project progress. Work commenced on the site on the 13 January, 2003 and it is anticipated will be completed on the 14 April, 2003.
RESOLVED:
That the report be noted.
261 BRIEFING NOTE FOR MEMBERS - INTERNAL AUDIT PROGRESS REPORT
The Panel received a verbal report from the Treasurer's Department on the internal audit inspection of the Portsmouth Basic Command Unit. Mr. Knudsen confirmed that satisfactory responses had been received back from management and progress would be monitored. The Panel sought clarification on the reasons why this situation had occurred and the Director of Finance detailed some of the contributory factors but was content that suitable action had now been taken.
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