Report Template
Please ensure all sections of this report are fully completed after discussing with the subject expert and a version control included.
Meeting name:(i.e. SLB/POM/COG) / Finance Panel
Date of meeting: / 26/05/16
Title of paper: / Budget Monitoring Report 2015/16
Author: / P. Skelton, C. Burgham, L. Adams, H. Bamford
Sponsor/ Board member: / Dave Bennett
Executive summary:
Executive summary:
The report provides details of the financial performance for 2015/16. This includes:
o Revenue Account (underspend of £0.025m)
o Reserves (£27.191m at 31st March 2016)
o Capital programme (£7.358m spend in year; £6.328m deferred expenditure)
Recommendation(s):
That the report is noted.
Once approved by the relevant Board member who will present this paper, please submit to the relevant Board secretariat no less than five working days before the meeting
1. Purpose of report
To provide details of the financial performance for the year ended 31st March 2016.
2. Background information
N/A – full report in Appendix A
3. Main content
Full report in Appendix A
4. Departmental contact
Peter Skelton, Chief Finance Officer, 01452 752240
5. Consultation matrix
A tick will equate to an assumption that the author and/ or sponsor has appropriately consulted with the relevant subject matter expert.
Implications / Tickü / Comments
(NOTE: If subject experts have NO comments, please complete with ‘No issues arising’. If they do, summarise them in the relevant ‘relevant comments’ box)
HR / √ / No issues arising
Training / √ / No issues arising
Legal / √ / No issues arising
ICT / √ / No issues arising
Finance / √ / As detailed in report
Communications / √ / No issues arising
Engagement / √ / The budgets for each group/department have been signed off by the Group/Department Head
Ethical / √ / No issues arising
EIA / √ / No issues arising
Environmental / √ / No issues arising
Sustainability / √ / No issues arising
Other (subject expert) / √ / No issues arising
6. Appendices / attachments / lessons learnt (if appropriate)
Relevant background papers or appendices (if publishable). Ensure any relevant reference is added to each paper, for example: SCB Business caseAppendix A – Budget Monitoring Report 2015/16
o
o
7. Version control
Version, date and change history: / Version / Date / Summary of change history1 / 20/05/16 / Draft
Approved by Board Member: / Name: P. Skelton / Date: 20/05/16
Security marking: / Not protectively marked / protected / restricted
Budget Monitoring Report 2015/16 Appendix A
REVENUE EXPENDITURE 2015/16:
The cost of Police Officers, Police Staff and PCSOs includes flat rate employer’s pension contributions. Other employee costs include other employer pension costs.
1. Outturn Forecast
The outturn for the year shows an underspend of £25k. This comprises the following key elements:
£’000
Police Officers -736
Supplies & Services -339
Income -475
Force Development Contingency -258
Premises -205
PCSOs -154
New growth 1682
Other Employee Costs 622
Other areas -162
TOTAL - 25
An explanation of these variances can be found in section 3 below.
2. Savings Requirement 2015/16
The under-spend of £25k is net of the savings target for the year.
3. Commentary on Significant variances (over £100k)
Comments on the variances from the 2015/16 budgets are as follows:
(a) Police Officers (Variation to Budget +£284k, Under-spend £736k)
The budget variations for the year (£286k) are mainly in relation to:
· Release of funding from central contingency in respect of additional Bank Holidays in 2015/16 (£217k).
There is a projected under-spend of £736k on Police officer salaries and pension budget at outturn. This is mainly in respect of:
· Overspend of £199k on the devolved police officer overtime budgets. This includes an overspend of £113k on Local Policing (comprising Neighbourhood £62k o/s, Custody £52k o/s, CJ £2k o/s and Incident Management £2k u/s) and £93k on Specialist Crime Operations.
· Savings on Competency Related Threshold Payments (£18k), Bonus Payments (£7k) and Unsocial Hours Payments (£79k).
· An underspend of £794k on police officer salaries & pension contributions.
(b) Police Staff (Variation to Budget +£1.695m, Over-spend £26k)
The budget variations for the year (£1.695m) are mainly in relation to the release of funding from:
· Specific carry forwards & central contingencies £1.481m – including Transformation Program/AMP (£836k), Community Engagement Restructure (£126k), IT Network Contractor (£83k), Temporary HR Advisors (£54k), Cyber Crime (£65k), Website Development (£14k), Temporary Legal Staff Costs (£25k), DMS Administration (£16k), Driver Training (£18k), Network Engineer (£7k), Unifi Test Analyst (£15k), Temporary Vetting Analyst (£13k), Mobile Data (£4k), Policy Officer OPCC (£26k), Records Manager (£16k) COG Police Staff Officer (£15k), CRU Growths Posts (£34k) and Visor WFM Post (£16k).
· Funding transferred in respect of:
o to fund additional IT Trainer from Training line (£31k)
o from Roads Policing Grant (£50k)
o from MARAC Grant (£29k)
o from RJ Grant (£38k)
o from Police Officer line to fund Surveillance Motorcyclist (£30k)
o from income contribution towards VISOR staff (£10k)
o from Major Incidents Contingency for MCIT Typist (£7k)
There is an overspend of £26k on the Police Staff budget line made up mainly of:
· Projected overspend of £41k on the Devolved Police Staff budget line, offset by
· Key Police Staff budget savings exceeding the £1m turnover target by £17k.
(c) PCSOs (Under-spend £154k)
The underspend of £154k is in relation to vacancies against the budgeted establishment.
(d) Other Employee Costs (Variation to Budget +£573k, Over-spend £622k)
The budget variation is mainly in respect of transfer of grant received from Home Office in respect of Milne vs GAD pension lump sum interest payments to pensioners in year (£658k).
The projected over-spend of £622k is mainly in relation to:
· the estimated cost for severance, redundancy and early retirement for the year (£92k)
· the cost of Police Officer Injury Gratuity pension & lump sum gratuity costs in excess of the budget for the year (overspend £94k)
· the cost of Police Officer Ill Health retirement charges in excess of the budget for the year (overspend £360k). Eight officers retired on ill health grounds in year. The budget is for four officers.
· An overspend of £59k in respect of Assessment Centre costs for 2015/16.
(e) Premises (Variation to Budget +£648k, Under-spend £205k)
The budget variations during the year (£648k) mainly relate to:
· Releases from Specific Carry Forwards & Central Contingencies to cover expenditure incurred in year £371k (including Tri Force Firearms Facility £220k, Stroud Lift Installation £45k, Buildings Invest to Save £34k, Electronic Access Controls £25k, Asset Replacement-Workshop Lift £21k, Mash to Wheatstone Court £19k)
· Transfer from other Tri Force Budget lines to fund Firearms Facility expenditure £338k
Net of:
· Transfers to set up new carry forwards into 2016/17
o Access Control - £7k
o Bamfurlong Gate - £41k
o Extn to Barnwood Lease - £39k
The under-spend is mainly in relation to:
· Savings on devolved budgets (£35k)
· Underspend on key budgets (£170k) including the following:
o Electricity (£89k u/s)
o Gas (£33k u/s)
o PFI costs Waterwells (£54k u/s)
o Central Charges (Bearlands) (£34k u/s)
o Water (£27k u/s)
o Rates (£37k o/s)
o Contract Cleaning (£21k o/s)
(f) Supplies & Services (Variation to Budget +£1.672m, Under-spend £339k)
The budget variations (£1.672m) mainly relate to:
· Releases from Specific Carry Forwards & Central Contingencies to cover expenditure incurred £1.374m (including – items over £20k - Asset Management Programme £432k, Mobile Working £166k, GCC Archiving Project £65k, Asset Replacement £53k, Cyber Crime £71k, Child Abuse Image Database £28k, Police Points £15k, Zephyr Relocation £55k, National IT Costs £98k, Operation Tench £46k, PPB Back Record Conversion £33k, PPB Scanning Files £57k, ACU relocation to Stroud £45k, Bearlands Decant £31k, Mash relocation to Wheatstone £29k, Fallback Control Room £24k and Livelink/Virtual Court £29k)
· Transfer of SARC Grant to Fund SARC expenditure £80k
· Transfer from other Tri Force Budget lines to Tri Force expenditure £290k
· Transfer from Police Officer line to fund Zephyr £80k
· Transfer from Supplies & Services budgets to fund new carry forwards £-23k
The under-spend is mainly in relation to:
· Projected savings on devolved budgets (£192k)
· Projected underspend on key budgets (£146k) including the following:
o Telephones- lines & rental (£149k u/s)
o IT Systems Fixed Costs (£136k u/s)
o Uniform & Accoutrements (£72k u/s)
o IT Systems Variable Costs (£49k u/s)
o Vehicle Recovery & Storage (£31k u/s)
o Provision at year end for estimated Self Insured Claims (£269k o/s)
o NDORS expenditure in excess of budget (£74k o/s) – see (j) Income below
(f) Force Development Contingency (Variation to Budget -£2.582m, underspend £258k)
The original budget of £2.840m represents budgets held centrally, including budgets for asset replacement and other contingency items.
The budget variation of -£2.582m represents the release of contingencies to other budget lines, additions to the contingency in respect of new in year growth (-£748k) and with transfers to set up new carry forward reserves (-£1.834m).
The underspend (£258k) is due to various contingency items requiring less funding in year that identified at approval.
(g) Savings Required to fund New Growth (£1.682m)
Growth has been approved in 2015/16 (£1.682m) in respect of funding for:
· Communications & Engagement Staff Restructure (£91k)*
· Review of Tri Force Arrangements (£8k)
· Child Abuse Image Database Installation (£39k)
· Policy Officer OPCC (£44k)*
· Additional Bank Holiday (£210k)
· Staff Officer in COG (£47k)
· Central Referral Unit Additional Posts (£51k – part yr effect, full yr effect est at £102k)*
· XRY Kiosk (£16k)
· Police Staff Regrades (£15k)*
· Police ICT Charges (£37k)*
· Invest to Save (£60k)
· WPC Software – Upgrade Ferret (£5k)
· Electronic Access Controls (£60k)
· Prism House Solar (£39k)
· SW Collaborative Service Platform (£133k)
· ACU relocation (£82k)
· National Mobile Property Register (£4k)*
· Lansdown Decommissioning (£263k)
· Network Contractor (£103k)
· NSBIS Indexer (£2k – 1 month of est annual cost £29k)*
· Additional Police Pension Costs (£16k)
· Removal Costs Bearland to Barnwood Point (£25k)
· Mounted Police Trial – (£197k)
· Fallback Control Room (£52k)
· MASH to Wheatstone (£40k)
· Bearland Decant (£42k)
The growth above marked * (total value £295k) is permanent annual growth and will have to be built into the budget for 2016/17
Growth approved since last report is highlighted yellow
(i) PCC Commissioning Fund (Variation to Budget +£570k)
This budget variation represents:
· funding drawn down from specific carry forward reserves to offset expenditure incurred by the Commissioning Fund to invest in the priorities of the Police & Crime Plan (£1.066m)
· funding transferred in from PCC Salary Budget for Charity Fund (£5k)
· funding transferred out to match expenditure with regards to SARC (£60k) and Restorative Justice (£41k)
· funding transferred out to set up addition to Specific Carry Forward Reserves for Commissioning (£400k)
(j) Income (Variation to Budget -£875k, Additional Income £475k)
The budget variations in 2015/16 relate mainly to the following items:
· funding transferred to set up Specific Carry Forward Reserve
o for Asset Recovery Incentivisation Scheme (£400k)
o SPECs (£71k)
· SARC income received (£20k) transferred to cover Police Staff costs incurred
· VISOR income received (£10k) transferred to cover Police Staff costs incurred
· Income received in respect of Project Staff (MCIT & Storm) from A&S Police (£31k) transferred to cover costs incurred
· Tri Force income received (£238k) transferred to cover expenditure incurred
The additional income relates mainly to key income projected in excess of budgeted amount (£372k) together with income received by devolved budget holders in excess of budgeted amount (£103k).
The key income is mainly in respect of the returned helicopter reserve balance under the arrangement prior to National Police Air Service (£107k), projected Proceeds Of Crime Act Income in excess of budget (£22k excess net of £400k transferred to carry forward detailed above), Prosecution Costs Income in excess of budget (£77k), Firearms Licences income in excess of budget (£40k) and Specialist Crime Operations seconded officer recharge (£22k).
In additional key NDORs income was received in excess of budgeted amount (£74k) which is in respect of expenditure incurred within Supplies & Services Line.
(k) Specific Grants (Variation to Budget -£1.239m)
The variation to the budget of -£1.239m is mainly in respect of the transfer of the following grants received in year to cover the expenditure incurred:
· Milne vs GAD pension lump sum interest payments to pensioners in year (£658k)
· Tri Force (£478k)
· Home Office Business Analytics (£38k)
· Home Office Roads Policing (£50k)
· MARAC (£19k)
(l) Reserves (Variation to Budget £820k, Draw down from Cfwd £820k)
The variation to the budget of £820k represents amounts drawn down from carry forward reserves to cover expenditure incurred during 2015/16 (£1.994m) net of the amount transferred to set up new carry forwards at the end of 2015/16 (£2.814m).
(m) Budget Requirement (Variation to Budget £6k, Variance -£25k)
The variation to the budget represents a change to the expected amount of Council Tax Freeze Grant of £5,603. This has the effect of increasing the overall budget requirement from £105,094,577 to £105,100,180.
The Finance Panel will determine which reserve the in year underspend of £25k will be transferred to.
RESERVES
The reserves at 31st March 2016 are shown below:
Revenue Support Reserve
Following the Government grant settlement in December £5m has been transferred from this reserve into the Estates and ICT reserves. The balance of £3m is currently earmarked for the transformation programme and impact of the proposed funding formula changes.
Estate Reserve
Expenditure of £1,079k was funded from the Estate Reserve in 2015/16 on the following estates projects:
£k