Decision Reference Number: WPCC3-0101
Lead Officer: Sara Ansell, Treasurer
Chief Officer approval: N/A
Date: 30th May 2023
Status: Non-confidential
Decision summary:
Financial Regulations require a year end outturn report to be submitted for consideration and approval by the Police and Crime Commissioner (PCC). This should also include detail on the use of or transfer of any surplus/deficit on revenue budgets in line with the reserves strategy and the capital outturn and financing.
This decision notice seeks formal approval for the final outturn including recommendations made in the Money matters report. The position will be reflected in the production of the 2022/23 Statement of Accounts for the PCC and Chief Constable.
The PCC is therefore asked to formally approve the following recommendations as detailed within the Money matters 2022/23 outturn report which supports this decision notice, and consolidates the recommendations made during the year for completeness (some of which were previously reflected in decision notice WPCC3-0083).
Capital Programme – Empower – Tech
- Increase the capital programme (budget) by £2.858m, over the MTFP, to commence the investment in ICT/DS Empower – Tech. Planned (budget) funding at Q1, when the decision was taken, and actual funding at year end, is set out in Table 5.3 of the supporting document.
Virements (Budget Transfers)
- Increase the NCVS income budget by £1.500m, which is offset by a corresponding increase in the Direct Revenue financing (DRF) contributions to finance capital expenditure.
Direct Revenue Financing Contributions to Fund Capital Expenditure
- Make an additional £1.700m of DRF.
Earmarked Reserves (Capital)
- Transfer £0.774m from the Infrastructure Reserve to provide general funding to the capital programme.
- Transfer £0.200m from the Sustainability Reserve to finance (capital) initiatives that meet the PCC’s sustainability criteria.
- Transfer £0.014m from the Safer Roads Partnership (SRP) reserves to fund the purchase of a Yamaha R1 ABS motorbike for use by the WRSU.
Earmarked Reserves (Revenue)
- Transfer £0.980m revenue balance to the Infrastructure Reserve (capital)
- Transfer £0.360m to the Operational Reserves as a carry forward to meet Rockhampton and ‘Empowering You’ initiatives in 2023/24.
- Transfer £0.200m to NCVS Reserve to mitigate potential disruption to the business.
- Transfer £0.083m to the PCC Reserve, of which £0.014m will be applied to finance capital (as above) and the remainder is to fund grant allocations in 2023/24.
- Transfer £0.049m from the SRP Reserve to meet the net costs, after income, of the WRSU move from Counsel Road.
Dilapidations
- Transfer £0.046m from the Balance Sheet to partially fund the dilapidation costs for Consul Road (WRSU).
I confirm that my register of interests declaration is up to date and that none of my interests preclude me from making this decision.
Signature: Philip Seccombe TD
Date: 04/06/2023
Supporting information
1. Background information
The 2022/23 net expenditure outturn is £119.738m, and £1.700m less than the core and budgeted reserve funding of £121.438m.
The supporting Money Matters report outlines the full detail and variances regarding the revenue and capital outturn position in 2022/23. The report also includes the reserve transfers, year end reserve balances, and the 2022/23 capital funding. In summary, the underspent outturn position, arose primarily due to increased income and underspending on police officer and staff pay related costs. There have also been some areas of increased spend, most notably from planned increased contributions to capital to finance 2022/23 investments, thus reducing the reliance on borrowing, as part of a strategy to achieve a more sustainable capital financing strategy, in the light of recent increases in borrowing costs and the removal of all central grant to partially fund capital expenditure.
Total 2022/23 capital expenditure was £9.039m, on fleet, estates and digital investments. This spending was mostly funded by direct revenue financing (£4.4m), capital receipts (£1.8m), and revenue reserves (£1m), with only a relatively small amount of £1.5m funded from borrowing; the borrowing was “internal” from surplus cash balances resulting in no new PWLB borrowing being required.
Reserve balances at year end are £15.013m. This represents an increase of £0.707m against the closing balance of £14.306m of reserves held at the end of March 2022 . This includes the £6m general reserve, and all other earmarked reserves, which are held to meet known future costs and to manage specific risks.
The full details on the outturn are not replicated in this document. However, the supporting outturn report, should be read in full alongside this decision notice.
2. List of additional information attached as appendices
The 2022/23 Money Matters outturn report
3. Expected benefits
The outturn report, appended to this decision notice, outlines the final unaudited position and financing of the 2022/23 revenue and capital expenditure, the capital slippage into 2023/24 and the reserve transfers and year end balances. The budget supports the effective delivery of the policing service in Warwickshire, and its approval will ensure that the Local Government Capital Finance & Accounting Regulations (England) are complied with. The outturn remains draft, until the auditors have completed their work and provide their opinion on the 2022/23 Statement of Accounts.
4. Impact of not approving the application
Compliance with the requirements under the Local Government and Accounting Regulations (England) would not be achieved.
5. Costs (including any identified savings)
The attached supporting outturn report outlines all the relevant revenue and capital costs and provides detail on the 2022/23 transfers to and from reserves and the resulting year end reserve balances. The figures shown above are reflected in the draft Statement of Accounts for the PCC and Chief constable.
6. Equality considerations
All relevant policies apply to all aspects of the budget and spending
7. Legal comments
The PCC is required to set a balanced budget and requires the force to operate within it. The 2022/23 outturn is one of underspending and increased transfers to reserves are therefore recommended at year end. Governance arrangements are in place to ensure that the PCC is informed of the financial position regularly throughout the year, and whilst recommendations are included in this decision notice for completeness, they have been previously considered and approved at the governance board meetings, and part way through the year in decision notice WPCC3-0083 held throughout the year.
8. Social or Environmental considerations
The budget covers the entirety of all spending and income sources. Social and environmental implications should be considered fully as part of this process.
9. Publication
Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Unless the information provided is covered by an exemption and stated to be either confidential or partly confidential, the information contained in the form will be published on the OPCC website.
Comments from the Treasurer
All financial detail is included either within this decision notice or within the more detailed supporting documentation. The content of the supporting report has been scrutinised and it is essential that the recommendations are approved to ensure compliance with statutory financial regulations. The outturn has been incorporated into the unaudited Statement of Accounts which were published on the 31st May 2023. The audit of these should be completed by the 30th September 2023.
Comments from the Chief Executive and Monitoring Officer
The recommendations in this decision notice require approval by the PCC to ensure compliance with the requirements under the Local Government and Accounting Regulations (England) and compliance with statutory financial regulations.
