Key
points raised during the discussion:
- 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.
- 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.
- 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.
- It was
noted that the Surrey Police Group financial report for month 12
(31st 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.