Agenda item

For the Police and Crime Panel to consider the following finance reports,

1. Surrey Police Group financial report for month 12, financial year 2016/17
2. Surrey Police Group financial report for month 2 (31st May), financial year 2017/18
3. Office of the Police and Crime Commissioner 2016/17, end of year financial report
4. Office of the Police And Crime Commissioner month 2, 2017/18 financial report

Key points raised during the discussion:

1. The Chief Finance Officer introduced the item by summarising the Surrey Police group financial report for month 12, financial year 2016/17. Members were informed that there was an under-spend of £226K against the approved budget of £212.6M, £124K of which was achieved by the Office of the Police and Crime Commissioner.

2. Members noted that one of the factors for the under-spend was the shortfall of 66 police officer posts and the large number of leavers who had earned more than the probationers that replaced them.

3. It was explained that the substantial under-spend was off set by over-spend in IT by £859K and estates and facilities by £1.6M. It was further reported that the PCC approved capital budget for 2016/17 was £12M and expenditure for the year amounted to £7M, the remainder being carried forward to the 2017/18 capital programme.

4. It was noted that the Surrey Police Group financial report for month 12 (31^st May), financial year 2017/18 showed that the gross revenue for the year was £212.6M, an increase of £6.9M compared to the previous budget in 2016/17.

5. The Chief Finance Officer explained forecasts based on just two month’s figures should be treated with a degree of caution with forecasts becoming more reliable as the months pass.

6. There was a discussion around the financial volatility with the Surrey and Sussex joint finance team and officers were asked to report on the current progress. Members were informed that an independent review was going to be carried out to ensure good measures would be taken going forward as forecasts were uncertain.

7. Members raised concern with the significant variances within the service quality and change programme two months into the financial year, Officers explained that savings were budgeted in the change programme and on the basis savings would be achieved, the figure would disappear to balance the budget. The Chief Finance Officer advised further information on the service quality can be provided at a later date.

8. It was noted that the relocation and the running of two different systems were main factors for the volatility between the Surrey and Sussex financial team. The PCC advised that the office recognised the issue and was taking necessary steps to solve the problem. Following the concerns with the collaboration the PCC agreed a report to be provided on the progress of the joint finance team to be provided at a later date.

9. It was reported that there were on average 18 leavers a month however due to the salary rates Surrey Police have been able to recruit heavily, 12 Police Constables ahead of establishment.

10. The Vice-Chairman suggested that interim measures should be taken when considering similar future collaborations to avoid decline and experience, in particular to relocation of staff. The PCC assured that the estates strategy was under review and the views of the Panel would be taken into consideration when looking into relocation.

11. Members expressed the view that relocation should be mid way between Surrey and Sussex so it is more practical for staff. The PCC explained that relocation was not an easy solution and the estates strategy was looking into effective ways of using existing buildings and potential new buildings in order to reach solutions.

12. It was noted the division of costs and any profits between Surrey and Sussex Police was 55% and 45%, Sussex receiving the larger percentage due to having a more substantial sized Police force.  The Chief Finance Officer assured the Panel that the agreement between both authorities was kept under review by internal and joint audits and that if circumstances were to change there was room for revision.

13. The PCC supported the view that IT systems, both emergency and administrative was fragmented and assured the Panel this concern was high risk and would be reviewed further going forward.

14. It was reported that exit interviews indicated that the number one reason for officers leaving the force was due to ‘work life balance’ with finance being ranked as the second contributing factor.

15. Despite the teething problems with the Surrey and Sussex finance team, the PCC expressed the view that collaborations improved service. The PCC stated how more collaboration work would be undertaken regionally with Hampshire and Thames Valley.

16. Whilst reviewing the Office of the Police and Crime Commissioner 2016/17end of year financial report, members expressed the view that the Community Safety Fund should be targeted more at districts and boroughs. The PCC explained that funding could be applied for and was being directed to frontline services.

17. When summarising the Office of the Police and Crime Commissioner month 2, 2017/18 financial report, the Chief Finance Officer reported that there were no particular areas of concern.

RESOLVED:

The Panel agreed and noted the finance updates.

ACTIONS/FURTHER INFORMATION TO BE PROVIDED:

R6/17- For the OPCC to provide the PCP with a report on the results of the independent review carried out on the Sussex/Surrey joint finance team at the next Panel meeting on 12 September.