Author and Job Role: Kelvin Menon – Treasurer
Protective Marking: OFFICIAL
Executive Summary:
The Financial Monitoring report for the first four months of the year to July 2023 shows that Surrey Police Group is predicted to be £1.1m under budget by the end of March 2024 based on performance so far. This is based on an approved budget of £288.5m for the year. Capital is predicted to be £5.3m 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 £288.5m for 2023/24, against this the forecast outturn position is £287.4m resulting in an estimated underspend of £1.1m.
| Total 2023/24 Budget £m | Total 2023/24 Outturn £m | Variance £m | |
| 2023/24 Budget | 288.5 | 290.1 | 1.6 |
| Funding | (288.5) | (291.2) | (2.7) |
| Grand Total | (0.0) | (1.1) | (1.1) |
Given it is early in the year this is only an indication of the financial return and depends on the assumptions made in respect of inflation etc. This should become clearer as the year continues.
Police office pay is forecast to be overspent by £3.3m due to the pay increase being set at 7% which was higher than was budgeted for. This has been offset by a grant from Government for the pay award and higher than budgeted vacancies in Police staff. There have also been a number of smaller variances in other areas.
Police Officers numbers were just above target as a result of the Government incentive to recruit ahead of need. Police staff were carrying 215 vacancies or 10.8% of the total.
Capital Forecast
The capital plan is forecast to underspend by £5.3m against an agreed budget of £21m £5m of this arises in the re-phasing of Estates projects such as a new firing range, roof replacements, new HQ plus also vehicles and body armour.
Revenue Virements
Per financial regulations only virements over £500k need approval from the PCC. These are set out below for the period to July 2023:
| 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 | |
| Reallocating funds within Joint Ops CT SFO and moving Op Zoo to Op Pinata | P4 | (136) | 136 | |||||||
| Temporary Virements (up to £0.500m) | ||||||||||
| None | P4 | |||||||||
| Permanent Virements (over £0.500m) | ||||||||||
| DDat TOM | P4 | (1,101) | 1,101 | |||||||
| Temporary Virements (0ver £0.500m) | ||||||||||
| None | P4 |
Recommendation:
I note the financial performance as at the 31st of July 2023 and approve the virements as set out above.
Police and Crime Commissioner Approval
Signature: Police and Crime Commissioner for Surrey Lisa Townsend (wet signed copy held at PCC’s office)
Date: 07 September 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 1st 4 months 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