The role and work of the Resources Directorate

Report: 7
Date: 24 April 2008
By: Director of Resources on behalf of the Commissioner

Summary

The Metropolitan Police Authority has requested regular reports on the work of all Metropolitan Police Service Business Groups. This is the first report from the Resources Directorate and provides an overview of its functions and how the directorate contributes to the corporate strategic priorities of the Service.

A. Recommendation

That the report be received.

B. Supporting information

Introduction

1. The aim of the Resources Directorate is to provide first class services to support the delivery of an effective police service to London’s diverse communities. With an MPA/MPS budget of some £3bn the Directorate works in partnership with colleagues across the MPS to ensure the effective delivery of services within a clearly understood governance framework. Key responsibilities include management of the budget; procurement and contracting for the MPS and the management of the MPA estate, which comprises over 820 operational buildings, 858 residential properties and 740 rooms in section houses. On 1 April, the Directorate assumed responsibility for strategy development together with organisational performance management and improvement.

2. The Resources Directorate comprises:

Finance Services including:
- Finance Business Development
- Finance Business Support
- Strategic Finance
- Exchequer Services and Finance Systems
Procurement Services including:
- Category Teams for Corporate Services; Information Communication and Technology; Operational Services
- Supply Chain Management
- Procurement Infrastructure/Strategy
Property Services including:
- Asset Management and Utilisation
- Programme Delivery/Construction
- Facilities Management
- Commercial Operations
- Operational Support Group (includes Computer Aided Modelling Bureau)
- Resilience and Compliance (includes Environment)
Strategy and Improvement (from 1 April 2008) including:
- Relationship Management
- Strategy, Research and Analysis
- Planning, Performance and Improvement
- Programme and Project Support

3. Over the past few months a review has been undertaken to re-define the functions required of the “corporate centre” of the MPS. The review has built on work to date to ensure that the Service has appropriate capability and capacity in the following areas:

Strategic planning and decision-making
Business performance
Support to business groups in embedding robust corporate governance and continuous improvement in the delivery of an effective policing function over the medium term, which reflects the changing nature of the Capital.

4. In addition, the following functions have transferred from SMPD to Finance Services to secure greater synergies with existing and developing functions in that area:

Risk and insurance
Inspectorate
Activity Analysis Unit.

5. More detailed information on the functions of Resources Directorate departments is shown in Appendices 1 – 4. This report concentrates on 2007/08 performance and, therefore, excludes functions previously undertaken by SMPD.

6. In March 2008 (prior to the creation of the Strategy and Improvement department) the directorate had strength of 489 police staff and no police officers against an approved establishment of 658. For 2008-09 the establishment (excluding the Strategy and Improvement Department) has reduced to 649. The position by department for the beginning of the financial year can be summarised as follows:

Summary of Resources Directorate staff numbers at establishment (2 April 2008)
	Establishment 1 April 2008	Strength 31 March 2008	Variance
Directorate Programme Office	16	8	-8
Finance Services:
Director’s Office	3	3	0
Business Development	28	13	-15
Business Support	71	61	-10
Strategic Finance	39	29	-10
Exchequer Services and Finance Systems	107	83	-24
Total Finance Services	248	189	-59
Procurement Services:
Senior Management	5	4	-1
Category Management	39	29	-10
Supply Chain Management	5	1	-4
Procurement Infrastructure and Strategy	8	6	-2
Total Procurement Services	57	40	-17
Property Services
Director’s Office 8 3 -5	8	3	-5
Asset Management and Utilisation 53 33 -20	53	33	-20
Programme Delivery/Construction 30 21 -9	30	21	-9
Facilities Management 107 93 -14	107	93	-14
Commercial Operations 44 26 -18	44	26	-18
Operational Support 86 77 -9	86	77	-9
Total Property Services	328	253	-75
Grand Total	649	490	-159

Table 1: Summary of Resources Directorate staff numbers at establishment (2 April 2008)

7. The directorate establishment has subsequently increased by 88 posts with the transfer of some SMPD functions into the directorate as follows:

Resources Directorate breakdown of increase in posts at establishment by section
Posts
Strategy and Improvement	63
Finance Services	25
Total	88

Table 2: Resources Directorate breakdown of increase in posts at establishment by section

8. Prior to the transfer of SMPD functions into the directorate, its budget for 2007/08 was £238.046m rising to £253.077m in 2008/09. An analysis of the directorate’s budget by type of spend and department is provided in Appendix 5. The directorate, through Property Services, also manages a significant capital budget. The original 2007/08 budget of £65.897m was revised to £39.942m. The 2008/09 budget is £70.875m after adjusting for over programming.

9. The Resources Directorate provides a lead role in developing and managing the Authority’s overall budget of £2,532.7m in 2007/08 (£2,595m in 2008/09). Details of how the budget is spent and funded are provided in Appendix 6.

Supporting strategic priorities

10. As identified in the 2008-11 Policing London Business Plan the Resources Directorate, excluding the previous SMPD functions, will support the MPA/MPS key objectives by:

Achieving a legal capital and revenue budget for 2009-10 by the end of March 2009 which meets the business needs of the MPA/MPS
Developing and improving Financial and Resource Management across the MPS
Through strategic procurement, driving efficiency savings for the MPS, namely identifying, obtaining and capturing £35m in cashable savings over the period 2007-10
Implementing a more effective Procure-to-Pay (P2P) system to improve financial control and enhance customer service
Delivering the Estates Strategy Plan in line with agreed milestones including rolling-out Stage 2 of Safer Neighbourhood property solutions.

11. The directorate will be monitoring effectiveness through:

Delivery of integrated business plan and budget processes for 2009/10
Delivery of the business plan and budget to agreed GLA/MPA timetables
Implementation of the new Finance and Resources structure to agree timetable and budgets
Delivery of procurement related savings of £14m in 2008/09
Delivery of Estates Strategy Plan and improved efficiency building uses / design solutions to agreed timetables
Delivery of Safer Neighbourhood bases (stage 2) to agreed timetable.
Best practice (Beacon etc.) estate practices through the adoption of Asset Management Plans signed off by OCUs for the medium / long term.

12. In addition, the Resources Directorate currently leads on developing and managing the MPS Corporate Governance Framework. During 2007 Management Board adopted a new model of corporate governance (the Authority’s Corporate Governance Committee considered this model in December 2007). A programme of work is underway to ensure the Framework continues to be fit for purpose in a fast moving environment and that good governance is embedded across the Service. In addition to managing the overall programme, the Resources Directorate leads a number of the governance-related projects. Highlights are:

Purchase to Pay (P2P). This project will streamline and standardise the Purchase to Pay process by establishing a simplified and common way of working across the MPS. The project will maximise the use of corporate contracts to deliver cashable benefits, will provide increased visibility of spend & increased focus on compliance and internal controls.
Contributing to the MPAs review of Contracts Regulations and Standing Orders. The MPA Standing Orders and Scheme of Delegation and how the MPS operates within that environment are fundamental drivers to the Service’s own corporate governance framework. The Directorate is working with the Authority to ensure that changes to Contract Regulations and Standing Orders reflect:
- The work in hand to improve the Service’s corporate governance framework and the process improvements needed which have been identified with the operation of the current Standing Orders
- The need to streamline MPS decision taking processes and enable the Service to operate effectively within the approved framework.
- The need to provide reassurance to MPS senior management and the MPA that appropriate systems of control and effective compliance are in place.
- Corporate Business Planning Review. This project will provide further improvement to the integration of the business plan and budget process and achieve a legal capital and revenue budget for 2009-10 which meets the business needs of the MPS.
- Audit & Inspection Strategy. This has been approved by the Management Board and aims to ensure the Service learns from audits and inspections and uses them to deliver improvements.
- PURE (Police Use of Resources Evaluation). The MPS aims to improve its PURE score in the areas of internal control, value for money financial management, financial standing and financial reporting.
- Scheme of Delegation. Work is in progress to create and operate Local Schemes of Delegation, which are consistent across the Service. This will enable a systematic approach to be adopted on corporate processes and systems. Approval limits adopted across the service will be incorporated into the Purchase to Pay systems which are currently being developed and adopted

Further information on the work of the directorate is provided in Appendices 1- 4.

Supporting frontline policing

13. The Resources Directorate supports frontline policing through the implementation of its strategies and objectives as set out above. Specific examples are shown in Appendices 1 – 4. While the entire directorate has a role in supporting frontline policing, some parts have a more direct involvement. Property Services Operational Support Group has a particularly significant role in this respect.

Supporting MPS modernisation

14. The Resources Directorate is supporting MPS modernisation through leading or supporting a number of key initiatives. These are set out in Appendices 1-4.

Diversity and Citizen Focus

15. The Resources Directorate gives considerable focus to diversity and citizen focus issues. For example, at directorate level an independent and confidential telephone helpline has been introduced for any member of Resources Directorate staff who needs support with work related issues. Issues could include stress in the workplace, excessive workload, working relationships with colleagues/managers or any other work related matter directly affecting an individual’s performance. The helpline operates 24 hours a day, 365 days a year and can be accessed completely anonymously. Minicom services are available Monday to Friday, 8am to 8pm. Use of the helpline is monitored and evaluated.

16. In addition, the MPS and MPA have agreed to implement the London Living wage in all first line contracts, which will impact almost 950 people. The positive impact of this initiative will be to improve the standard of their lives as well as their families. It has the potential to increase how long they live due to a better standard of housing and food, reduce sickness and improve overall quality of life and job satisfaction. It has also enabled the introduction of innovations to move lower paid staff into full time roles (rather than part time) through the introduction of day time cleaning etc. The implementation of this policy is expected to have a positive impact on the Service provided to the MPA/MPS through these contracts.

17. Further examples of progress in the diversity and citizen focus areas are shown in Appendices 1-4.

Challenges/Risks

18. Recruitment and retention remain major challenges for the Resources Directorate in competing for the best professional staff from a limited pool within the specialist employment market. As part of our work to ensure that the MPS continues to develop as an employer of choice, particularly in the specialist areas of Resources Directorate core business, we are reviewing our recruitment strategy and our pay and grading arrangements. In the meantime we continue to carry a high number of vacancies, particularly in critical areas, and we are heavily reliant on contract and interim staff.

19. We have however introduced some innovative schemes to mitigate our recruitment and retention issues. In particular we have developed a successful partnership with Sheffield Hallam University to provide work placements for students and have developed a number of trainee schemes to develop professional staff for the future.

20. We have also worked closely with HR to develop a more integrated grade structure in Procurement Services which it is hoped will both be more attractive to the market and facilitate the retention of staff once recruited. The response to the resultant major recruitment drive has been encouraging and is expected to be concluded in May 2008.

21. Changes to the structure of the Resources Directorate represent a challenge for the coming months but we are working closely with HR to manage the issues.

22. Further challenges and risks are set out in Appendices 1 – 4.

C. Race and equality impact

Examples of Resources Directorate initiatives in relation to diversity and citizen focus are shown in paragraphs 10 - 11 above and in the appendices relating to individual departments. The directorate will shortly publish its diversity and citizen focus action plan for 2008/09. Through this plan we will ensure that we continue to be fully engaged with the MPS Equalities Scheme. The directorate presented a report on its diversity work to the MPS Diversity Board, which includes members of MPA, on 30 January 2008. Copies of this report can be made available on request.

D. Financial implications

Information on the directorate’s budgets are provided in Appendix 5.
Each year significant levels of budget savings have been offered up for the Directorate and its corporate managed costs. Over the three years to 2007-08 budget savings have been identified to the value of £30.9m. For 2008/09 budget savings have been identified totalling £8m (with a further £5.2m for 2009/10 and 2010/11).

E. Legal Implications

There are no specific legal implications arising from this report.

F. Background papers

None

G. Contact details

Report author(s): Anne McMeel, Director of Resources, MPS

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18