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 £3.4m under budget by the end of March 2023 based on performance so far. This is based on an approved budget of £279.1m for the year. Capital is predicted to be £4.0m underspent due to the timing of various projects.
Financial Regulations state that all budget virements over £0.5m must be approved by the PCC. These are included within this decision notice.
Background
Revenue Forecast
The total budget for Surrey is £279.1m for 2022/23, against this the forecast outturn position is £276.7m resulting in an underspend of £2.4m.
| 2022/23 PCC Budget £m | 2022/23 Operational Budget £m | 2022/23 Total Budget £m | 2022/23 Projected Outturn £m | 2022/23 Projected Variance £m | |
| Month 9 | 3.2 | 275.9 | 279.1 | 275.7 | (3.4) |
The largest element of the underspend is to do with staffing costs. A fixed number of officers (2,217) was budgeted for the entire year however in reality this number is not due to be reached until January thereby resulting in an underspend. In addition, despite efforts being made to recruit the staff vacancies stand at 12%, about 240 posts, which is above the 8% budgeted for resulting in a further saving. The shortage in staff has resulted in additional overtime costs but this has not negated fully the savings in staffing costs.
Workshop and fuel costs are estimated to be £1m over budget by the year end due to inflation although some of this has been offset by £0.5m saving in insurance premiums.
Capital Forecast
The capital plan is forecast to underspend by £4.0m. Most of this is due to underspend in IT projects (£3m) and the estates (£1m). The decision as to whether these will be allowed to be rolled over in to 2023/24 will be taken later in the year.
| 2022/23 Capital Budget £m | 2022/23 Capital Actual £m | Variance £m | |
| Month 6 | 14.9 | 10.9 | (4.0) |
Revenue Virements
Per financial regulations only virements over £500k need approval from the PCC. These are set out below for quarter 3.
| Revenue Virements | Period | Police and Crime Commissioner for Surrey | People Services | Local Policing | Operations Protective Services | Specialist Crime | Commercial and Finance Services | DDaT | Corporate Services | Enterprise Resource Planning |
| Permanent Virements (up to £0.500m) | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Surrey Op Uplift posts 6xPC and 1Xds for SOIT Joint Op Uplift posts 2 X PS and 10 x PC for Intel RB Surrey Op Uplift posts 4Xpc for POLIT Intervention Team Surrey Op Uplift posts 6 x PC and 1 DS POLIT Investigation Joint Ops Command Uplift posts 5xPC for FELU | M7 M7 M7 M7 M7 | (375) (321) (214) (375) (120) | 120 | 392 302 214 392 | (17) 19 (17) | |||||
| Temporary Virements (up to £0.500m) | ||||||||||
| DDat Central Funding STORM Capital Budget Tfr as agreed at CFO Board 30/09/22 | M7 M7 | 160 | (111) (160) | 111 | ||||||
| Permanent Virements (over £0.500m) | ||||||||||
| None | M7 | |||||||||
| Temporary Virements (0ver £0.500m) | ||||||||||
| None | M7 |
Police and Crime Commissioner Approval
I note the financial performance as at the 31st of December 2022 and approve the virements as set out above.
Signature: PCC Lisa Townsend (wet signed copy held in OPCC)
Date: 7th March 2023
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
The third quarter of the year has continued to be very challenging in terms of staff recruitment. Whilst this has resulted in an underspend there are gaps in a number of areas leading to increased pressure on remaining staff and impacts risk to performance. This is being kept under review so that risks can be managed.
Equality and diversity
None
Risks to human rights
None