Decision Log 007-2022 3rd Quarter 2021/22 Financial Performance and Budget Virements

Decision Log 007-2022 3rd Quarter 2021/22 Financial Performance and Budget Virements

Police and Crime Commissioner for Surrey – Decision Making Record

Report Title:                              3rd Quarter 2021/22 Financial Performance and Budget Virements

Decision number:                      07/2022

Author and Job Role:                Kelvin Menon – Treasurer

Protective Marking:                   OFFICIAL

Executive Summary:

The Financial Monitoring report for the 3rd Quarter of the financial year shows that Surrey Police Group is predicted to be £2.1m under budget by the end of March 2022 based on performance so far. This is based on an approved budget of £261.7m for the year. Capital is predicted to be £11.7m underspent due to slippage of, in the main, the new HQ.

Financial Regulations state that all budget virements over £0.5m must be approved by the PCC. These are set out in this report.

Background

Revenue Forecast

The total budget for Surrey is £261.7m for 2021/22, against this the forecast outturn position is £259.8m resulting in an underspend of £2.1m. This amounts to 0.8% of the overall budget and has arisen mainly due to underspends on wages due to a higher number of vacancies being carried and timing of officer recruitment.

Surrey 2021/22 PCC Budget £m 2021/22 Operational Budget

 £m

2021/22

Total Budget

£m

2021/22 Projected Outturn

 £m

2021/22

Projected Variance £m

Month 7 2.8 258.9 261.7 260.4 (1.3)
Month 8 2.8 258.9 261.7 259.8 (1.9)
Month 9 2.8 258.9 261.7 259.6 (2.1)

 

As well as wages the Force has done better than predicted on secondments and postings to regional units. However, pressures are building in areas such as petrol and utility costs as well as the impact of inflation. It is anticipated that should this underspend remain at the end of the year it will be transferred to reserves for one of use on the Force’s change program. This however is subject to final agreement of the PCC.

It is forecast that 150.4 posts created as a result of Uplift and the Precept will all be in place by the end of the year. In addition, all the £6.4m of savings has been identified and removed from budgets.

Capital Forecast

The capital plan is forecast to underspend by £11.7m. This is mainly due to slippage in projects rather than savings as can be seen that of the £11.7m underspend £10.5m relates to the new HQ and associated projects.

Surrey 2021/22 Capital Budget £m 2021/22 Capital Actual £m Variance £m
Month 9 24.6 12.9 (11.7)

 

Revenue Virements

Per financial regulations only virements over £500k need approval from the PCC. This is done on a quarterly basis and so virements relating to this period for approval by the PCC are shown below.

Month Amount

£000

 

Perm

/Temp

From To Description
M7 1,020 Perm Commercial and Financial Services Local Policing Surrey Uplift funding transferred

 

There are no individual revenue virements over £500k in M8 or M9

Capital Virements

Per financial regulations only virements over £500k need approval from the PCC. This is done on a quarterly basis and so virements relating to this period for approval by the PCC are shown below.

Month Amount

£000

 

Perm

/Temp

Capital Scheme Description
M7 1,350 Temp 50m Firing Range Transferred out of 21/22 Capital Program and in to 22/23

 

There are no individual capital virements over £500k in M8 or M9

Recommendation:

Police and Crime Commissioner Approval

I note the financial performance as at the 31st December 2021 and approve the virements set out above.

Signature: PCC Lisa Townsend (wet signed copy held in OPCC)

Date:     11th March 2022

All decisions must be added to the decision register.

Areas of consideration

Consultation

None

Financial implications

These are set out in the paper

Legal

None

Risks

Although half the year has now elapsed it should be easier to predict the financial outturn for the year. However, risks remain, and the budget remains very finely balanced. There is a risk that the predicted financial outturn could change as the year progresses

Equality and diversity

None

Risks to human rights

None

By |2022-03-18T13:35:48+00:00March 18th, 2022|Decisions, Decisions Archive|Comments Off on Decision Log 007-2022 3rd Quarter 2021/22 Financial Performance and Budget Virements