MPA - statement of accounts

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38Notes to the Financial StatementsM.P.W.W.F. - Metropolitan Police Widows’ andWidowers’ FundThis registered charity gives financial assistance byway of grants to deserving cases among widows andwidowers of former police officers. Grant towards thecost of a widow’s or widower’s funeral may also bemade if the deceased’s relatives are unable to afford it.The fund may also make grants and loans to servingofficers and grants to former officers.M.P.C.H.F. - Metropolitan Police ConvalescentHome FundThis registered charity channels police officers’contributions to The Police Rehabilitation Centre atGoring-on-Thames which provides residentialconvalescence facilities to Metropolitan Police officersand to officers from other police forces to helppromote a speedy recovery from illness or injury.M.P.C.F. - Metropolitan Police Commissioner’sFundThis registered charity was established to helppromote the efficiency and well-being of MetropolitanPolice officers and staff. Although this may beachieved in a variety of ways as defined in thegoverning document, assistance is invariably in theform of a monetary grant or loan to members of theMetropolitan Police or to Metropolitan Policeorganisations.M.P.S.F. - Metropolitan Police Sports FundThis registered charity receives monthly contributionsfrom police officers for sporting, athletic and otherrecreational activities. The major part of the income isdistributed to the four principal sports clubs (seebelow). Financial assistance is also given to five areasports and social clubs.M.P.A.A. - Metropolitan Police AthleticAssociationThe MPAA is the umbrella organisation for 50 sportingsections of the Metropolitan Police. Each section isindividually run but can receive assistance from theAssociation for its activities.M.P.S.C. – Metropolitan Police Sports ClubsThere are the four principal Metropolitan Police sportsclubs located at Bushey, Chigwell, Hayes and ImberCourt.M.P.C.S.W.F. – Metropolitan Police Civil StaffWelfare FundThis registered charity provides financial assistance tomembers and past members of police staff, theirfamilies and dependants who are in need.Metropolitan Police Sports and SocialAssociation COMETSThe aim of the COMETS is the promotion of sports,social and recreational activities for MPA staff, servingor retired. Whilst the MPAA is primarily for policeofficers, the COMETS is mainly for the benefit of policestaff.Other FundsA further 86 other funds administered by Authority staffhave submitted returns containing financial detailsrelating to their activities. These funds are mainly localsports and social clubs or savings clubs and servicewideorganisations or associations. The figures areonly in respect of 53 of these clubs etc. whose incomeor expenditure in their last financial year exceeded£10,000 or whose funds at their respective year-enddates exceeded £10,000.Operational ResponsibilitiesThe Authority also holds monies on behalf of thirdparties arising from its operational responsibilities. Thecash amounts, not included in the balance sheet, areas follows:£’000Proceeds of Crime Act monies 22,010Drug Trafficking Offences Act monies 2,222Prisoners’ property and lost cash 733Other 6,423Total 31,388In addition, the Authority also holds non cash assetswhich are not valued in the above table.The prisoners’ property and lost cash relates to thetotal amount held in property stores at 31 March 2008and has therefore been stated separately from thePolice Property Act Fund value.
39L. Police Pensions LiabilitiesAs part of the terms and conditions of employment ofits police officers, the Authority offers retirementbenefits. Although these will not actually be payableuntil employees retire, the Authority has a commitmentto make the payments that need to be disclosed atthe time that employees earn their future entitlement.There are two pension schemes, the Police PensionScheme and the New Police Pension Scheme forpolice officers. These are both unfunded definedbenefit schemes, meaning that there are noinvestment assets built up to meet the pensionsliabilities, and cash has to be generated from revenueto meet the actual pensions payments as they fall due.Police officers make contributions to both schemes;in 2007-08 this amounted to £117.0 million. In 2007-08, employer pension contributions have beencharged to the revenue account on the basis ofpensions payable in the year and totalled to £296.5million. Both schemes are accounted for in thestatement of accounts of the Police Pensions Fund onpage 47.The Authority had the following overall liabilities forpensions at 31 March 2008 that have been includedin the Balance Sheet:31 March 31 March2008 2007Estimated liabilities £ million £ millionin the schemeOfficer members 6,038 8,235Deferred Pensioners 323 339Pensioners 6,073 6,000Total value of 12,434 14,574scheme liabilitiesLiabilities have been assessed on an actuarial basisusing the projected unit method, an estimate of thepensions that will be payable in future yearsdependent on assumptions about mortality rates,salary levels, etc. Hymans Robertson, an independentfirm of actuaries, has assessed the scheme liabilitiesas at 31 March 2008.The main assumptions used in their calculations are:2007-08 2006-07Rate of inflation 3.6% 3.2%Rate of increase of 5.1% 4.7%salary (note i)Rate of increase in 3.6% 3.2%pensionsRate for discounting 6.9% 5.4%scheme liabilities(note ii)• Future salary increases are assumed to be withinan acceptable range.• The current discount rate is determined byreference to the market yield on high qualitycorporate bonds.The movement in the scheme liabilities for the year to31 March 2008 can be analysed as follows:2007-08 2006-07£ million £ million £ millionDeficit in scheme atbeginning of the year (14,574) (14,744)Movement in year:Current service costincluding HomeOffice contribution. (499) (518)Employercontributions 325 321Transfers from / toother authorities 0 (1)Past service cost(injury benefits) (1) (1)Interest cost onpension liabilities. (791) (727)Actuarial gain /(loss) 3,106 1,096Scheme liabilitiesat 31 March (12,434) (14,574)The actuarial gain can be further analysed as follows:2007-08 2006-07£ million £ million £ millionOther experience 204 106gains/(losses) onliabilitiesActuarial gain / (loss) 3,106 1,096Present value of 12,434 14,574liabilitiesM. Police Staff Pensions LiabilitiesThe PCSPS is an unfunded multi-employer definedbenefit scheme (see Statement of Accounting Policieson page 29 for details of membership) but theMetropolitan Police Service is unable to identify itsshare of the underlying assets and liabilities. A fullactuarial valuation as carried out as at 31 March 2008.Details can be found in the resource accounts of theCabinet Office, who administer the fund.For 2007-08, employers’ contributions of £104.7million were payable to the PCSPS at one of four ratesin the range 17.1 to 26.5 percent of pensionable pay,based on salary bands. The contribution rates reflectbenefits as they are accrued, not when the costs areactually incurred, and reflect past experience of theScheme.Notes to the Financial Statements
Page 9 and 10: 7Statement of Responsibilities for
Page 11 and 12: 9Within the MPS the corporate strat
Page 13 and 14: 11Within the MPS the risk managemen
Page 15 and 16: 13The practical implementation of t
Page 17 and 18: 15• Internal AuditIn maintaining
Page 19 and 20: 17Governance issuemanagement across
Page 21 and 22: 19kept to manage the accounting pro
Page 23 and 24: 21Land and BuildingsCategoryLandBui
Page 25 and 26: 23Income and Expenditure AccountFin
Page 27 and 28: 25Balance SheetThe Balance Sheet sh
Page 29 and 30: 27Notes to the Financial Statements
Page 31 and 32: 29• Pension reserve movement repr
Page 33 and 34: 3111. S102 Greater London Authority
Page 35 and 36: 3318. Minimum Revenue ProvisionThe
Page 37 and 38: 35Sources of Capital Finance2007-08
Page 39: 37K. Third Parties’ MoniesThe Aut
Page 43 and 44: 41Accommodation strategy/Propertyre
Page 45 and 46: 43Capital Adjustment AccountThe Cap
Page 47 and 48: 45The fair value is more than the c
Page 49 and 50: 47U. Analysis of Net Debt (liquid r
Page 51 and 52: 49GlossaryGlossary of TermsBudgetA

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