Decision Log 036/2021 – 1st Quarter 2021/22 Financial Performance and Budget Virements

Decision Log 036/2021 – 1st Quarter 2021/22 Financial Performance and Budget Virements

Police and Crime Commissioner for Surrey – Decision Making Record

Report Title:                              1st Quarter 2021/22 Financial Performance and Budget Virements

Decision number:                      36/2021

Author and Job Role:                Kelvin Menon – Treasurer

Protective Marking:                   OFFICIAL

Executive Summary:

The Financial Monitoring report for the 1st Quarter of the financial year shows that Surrey Police Group is predicted to be £0.5m over 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 £3.9m underspent depending on the timing of projects.

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

Background

Revenue Forecast

The total budget for Surrey is £261.7m for 2021/22, against this the forecast outturn position is £262.2m resulting in an over spend totalling £0.5m. Given that it is still early in the year steps can be taken to mitigate this.

Surrey 2020/21 PCC Budget £m 2020/2021Operational Delivery Budget £m Total 2020/21 Budget £m 2020/21 Total Outturn £m Variance £m
Month 3 2.1 259.6 261.7 262.2 0.5

 

The operational response to the COVID 19 pandemic has resulted in additional unplanned costs which consist of the salary costs of police officers and staff, employee overtime, premises, lost income and supplies & services. Op Apollo is forecasting £0.837m expenditure which can be offset against the Surge Fund which was carried forward from 2020/21, this is reflected in the forecast.  These costs may reduce as Op Apollo winds down due to the easing of restrictions.

There are variances within the budget, pay is forecasting an over spend overall with non-pay underspending to offset against this. Police officer numbers are increasing during the year as the recruitment plan delivers and the Force is on target to deliver the additional 149.4 precept and uplift posts.

Savings have been identified and are being tracked and removed from the budget.  There is an overall shortfall in the 2021/22 savings totalling £162k which have yet to be identified however this should be possible over the rest of the year. It is future year’s savings from 22/23 onwards amounting to £20m over the next 4 years that pose the biggest challenge.

Capital Forecast

The capital plan is forecast to underspend by £3.9m. For the 2020/21 financial year a new capital & investment gateway to proceed process was introduced for existing planned schemes. This step firmed up on the proposals put forward during the budget build and also allowed the funding position to be checked prior to giving the go ahead.

Surrey 2021/22 Capital Budget £m 2021/22 Capital Actual £m Variance £m
Month 3 27.0 23.1 (3.9)

 

Given a number of major projects are currently being reviewed the variance may change over the rest of the year.

Revenue Virements

Per financial regulations only virements over £500k need approval from the PCC. The rest can be approved by the Chief Constables Chief Finance Officer. All the virements are listed below but only one, for transfer of uplift funding, requires formal approval by the PCC.

Recommendation:

Police and Crime Commissioner Approval

I note the financial performance as at the 30th June 2021 and approve the virements set out above.

Signature: Lisa Townsend (wet signature copy available on request)

Date:     19th August 2021

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

As it is early in the year 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 |2021-08-20T13:01:17+01:00August 20th, 2021|Decisions, Decisions Archive|Comments Off on Decision Log 036/2021 – 1st Quarter 2021/22 Financial Performance and Budget Virements