NOT PROTECTIVELY MARKED. Executive Board. 28 th August Financial Monitoring Report (Revenue & Capital): 30 th June 2013

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1 Executive Board 28 th August 2013 ` Financial Monitoring Report (Revenue & Capital): 30 th June 2013 Joint Report of Treasurer and Assistant Chief Officer Revenue Expenditure Year to Date Financial Position (as at 30 th June) The overall year to date financial position for the PCC and Constabulary, to the 30 th June 2013, is expenditure below budget of 494,000. Police & Crime Commissioner (PCC) The overall year to date financial position for the PCC, to the 30 th June 2013, is expenditure below budget of 8,000. The main reasons for the budget position are explained in detail against the individual budget headings. Employees (underspend of 7,000) The following budget headings combine to explain the under spend: Police Officer Pay (overspend of 6,000): This reflects the recent appointment of a police officer to directly support the PCC deliver the duties of the Office. Police Staff Pay (underspend of 13,000): The vacancy not filled has created this underspend. Transport Expenses (underspend of 5,000) These expenses are closely monitored to ensure spend within the budget. Supplies & Services (overspend of 15,000) The main reason is reimbursement of the total costs for legal representation of officers met by the Police Federation at an inquest. Agencies & Contracted Expenses (underspend of 11,000) Expenditure is less than expected. The Constabulary The overall year to date financial position for the PCC, to the 30 th June 2013, is expenditure below budget of 486,000. The main reasons for the budget position are explained in detail against the individual budget headings. Employees (overspend of 85,000) The following budget headings combine to explain the under spend: Page 1 of 11

2 Police Officer Pay (underspend of 32,000): This reflects the continued retirement and work force modernisation activity. Police Overtime (overspend of 77,000): The operations undertaken have required the current level of reactive overtime costs and is the main reason for the overspend ( 118,000) but this has been compensated by an underspend ( 41,000) against public holiday overtime budgets. Police Staff Pay (underspend of 69,000): The vacancy savings target is being met and recruitment is carefully controlled which contributes to the overall financial position. Police Pensions (overspend of 122,000): This reflects payments to date made to police officers retiring or retired due to ill health. Other Employee Expenses (underspend of 13,000): Premises (underspend of 231,000) This underspend is expected because expenditure on buildings maintenance at Police HQ is being restricted as the new build HQ progresses. Transport Expenses (underspend of 51,000) This underspend is due to fleet motor vehicle insurance being less than expected by 65,000. Supplies & Services (underspend of 58,000) General control of expenditure is responsible for the underspend. Agencies & Contracted Expenses (underspend of 36,000) Expenditure on Forensic Science Services is highly responsive to demand and for the year to date has been lower than expected by 33,000. Income (higher than budget by 311,000) Customer & Client Receipts (higher than budget by 343,000): The majority of the extra income ( 150,000) is directly attributable to the settlement of the insurance claim for the fire in January 2013, which will be transferred into reserves. The balance of the extra income is from a number of different activities where costs have been recharged. Secondment Income (lower than budget by 13,000): Interest (lower than budget by 10,000): This is reflecting current low bank base rates. Special Grants (lower than budget by 9,000): Page 2 of 11

3 Forecast of Year End Financial Position at 31 st March 2014 Summary The end of financial year expenditure position is projected to be below budget by 919,000, which is 0.77% of the net revenue budget. The primary reasons for the projected underspend relate to police officer payments and higher than expected income levels. Police & Crime Commissioner (PCC) The end of financial year expenditure position is projected to be on budget. The main reasons for the budget position are explained in detail against the individual budget headings. Employees (underspend of 28,000) The following budget headings combine to explain the under spend: Police Officer Pay (overspend of 56,000): This reflects the costs of a police officer to directly support the PCC deliver the duties of the Office. Police Staff Pay (underspend of 84,000): The impact of the PCC support structure is expected to deliver a reduction in staff costs and cover the cost of direct police officer support. Transport Expenses (on budget) No comment. Supplies & Services (overspend of 28,000) The main reason is reimbursement of the total costs for legal representation of officers met by the Police Federation at an inquest. Agencies & Contracted Expenses (on budget) Expenditure is expected to be on budget and the year-end position will depend on the projects and activities supported by the PCC. Police Force The end of financial year expenditure position is projected to be to be below budget by 919,000. The main reasons for the budget position are explained in detail against the individual budget headings. Employees (underspend 199,000) The following budget headings combine to explain the under spend: Police Officer Pay (underspend of 230,000): This reflects retirements of police officers in the current year. Police Overtime (on budget): The overtime figures are sensitive to demand and monitored closely throughout the year. It is a little early in the year to be accurate with projections on such a volatile budget. Page 3 of 11

4 Police Staff Pay (on budget): This figure includes estimates for the recruitment of police staff to fill roles that have been workforce modernised and may well change as the recruitment is monitored closely throughout the year. Police Pensions (overspend of 73,000): This reflects payments of injury gratuity pensions to a number of officers. Other Employee Expenses (underspend of 42,000): Premises (underspend of 280,000) This underspend considers the scaling back of Police HQ building maintenance as the new build progresses and also the reduction in cleaning costs. Transport Expenses (underspend of 65,000) This underspend is due to fleet motor vehicle insurance being less than expected by 65,000. Supplies & Services (underspend of 64,000) The variances against the following cost headings make up the supplies and services overall overspend against budget: Equipment: (underspend of 64,000): The scaling back of furniture purchases as the new build Police HQ progresses accounts for this estimate. Stationery (on budget): Uniform (on budget): Doctors (on budget): Communications (on budget): Computing (on budget): Other Supplies (on budget): Agencies & Contracted Expenses (on budget) Expenditure on Forensic Science Services is expected to be on or more likely lower than budget and this will be reviewed at the end of the second quarter. Income (higher than budget by 611,000) Customer & Client Receipts (higher than budget by 318,000): The majority of the extra income 150,000 is directly attributable to the settlement of the insurance claim for the fire in January 2013 and recharges for support to other police force activities. Secondment Income (higher than budget by 293,000): This reflects the number of officers currently on secondment. Interest (on budget): This is reflecting current low bank base rates. Special Grants (on budget): Capital Financing Costs (over budget by 300,000) The capital financing charge will be reviewed at the end of the second quarter. A revenue contribution of 300,000 has been made to the Chester le Street improvements capital scheme. Page 4 of 11

5 Note: There are three tables reporting on revenue expenditure: Combined PCC & Constabulary Revenue Expenditure; PCC Expenditure; Constabulary Expenditure. There are seven columns of financial information on these reports: The first three columns report the actual cumulative financial position to date (for example to the 30 th June 2013): o to date is the profiled budget for the period to the 30 th June 2013; o Actual to date is the expenditure incurred to the 30 th June 2013; o The Variance to date is the difference between the to date and Actual to date columns (an overspend is shown in brackets, this is where expenditure is greater than the profiled budget number). The fourth column contains the Original for, which is the full year (balanced) budget approved by the PCC in January It is there (for information) as a reminder of how the original budget was allocated by expense and income heading. The final three columns report the projected financial position for the year ending 31 st March 2014: o Revised is a modified version of the Original, which reflects changes to budget headings that arise during the financial year as a result of prevailing service needs and priorities; o Outturn is a forecast of the financial position for the year ended 31 st March 2014 and considers all available information to prepare the most accurate estimate of each annual income and expenditure heading; o Variance is the difference between the Revised and Outturn columns. Page 5 of 11

6 Durham Police & Crime Commissioner and Durham Constabulary Year to 30 June 2013 & Outturn to 31 March 2014 Heading to date Actual to date to date Original Revised Outturn '000 '000 '000 '000 '000 '000 '000 Employees Police Officer Pay 17,473 17, ,503 68,503 68, Police Overtime (77) 2,134 2,134 2,134 0 Police Staff Pay 6,803 6, ,123 28,123 28, Police Pensions (122) 1,326 1,326 1,399 (73) Other Employee Expenses sub total 25,481 25,559 (78) 100, , , Premises 1,358 1, ,905 4,905 4, Transport Expenses ,735 2,735 2, Supplies & Services Equipment Stationery (4) Uniform Doctors ,430 1,430 1,430 0 Communications ,021 2,021 2,021 0 Computing ,862 1,862 1,862 0 Other Supplies (107) 1,156 1,156 1,184 (28) sub total 2,346 2,419 (73) 7,908 7,908 7, Air Support Joint & Other Authorities ,252 2,252 2,252 0 Police National Computer Forensic Science Services Support Service Charges less Income Customer & Client Receipts (256) (599) 343 (1,331) (1,331) (1,649) 318 Secondment Income (96) (83) (13) (385) (385) (678) 293 Interest (15) (5) (10) (60) (60) (60) 0 Council Tax Grant Special Grants (281) (272) (9) (1,016) (1,016) (1,016) 0 Capital Financing Costs ,950 2,950 3,250 (300) Transfer to/from (-) Reserve (1,500) (1,500) (1,500) 0 Net Expenditure 30,238 29, , , , Central Govt Funding (23,802) (23,802) 0 (94,761) (94,761) (94,761) 0 Precept (7,411) (7,411) 0 (24,704) (24,704) (24,704) 0 Net (Surplus)/Gap (975) (1,469) (919) 919 Page 6 of 11

7 Durham Police & Crime Commissioner Year to 30 June 2013 & Outturn to 31 March 2014 Heading to date Actual to date to date Original Revised Outturn Employees Police Officer Pay 0 6 (6) (56) Police Overtime Police Staff Pay Police Pensions Other Employee Expenses sub total Premises Transport Expenses Supplies & Services Equipment Stationery Uniform Doctors Communications Computing Other Supplies (28) (28) sub total (15) (28) Air Support Joint & Other Authorities ,110 1,110 1,110 0 Police National Computer Forensic Science Services Support Service Charges less Income Customer & Client Receipts Secondment Income Interest Council Tax Grant Special Grants (36) (36) 0 (36) (36) (36) 0 Capital Financing Costs Transfer to/from (-) Reserve Net Expenditure ,873 1,873 1,873 0 Central Govt Funding (770) (770) (770) 0 Precept Page 7 of 11

8 Net (Surplus)/Gap ,103 1,103 1,103 0 Durham Constabulary Year to 30 June 2013 & Outturn to 31 March 2014 Employees Heading to date Actual to date to date Original Revised Outturn '000 '000 '000 '000 '000 '000 '000 Police Officer Pay 17,473 17, ,503 68,503 68, Police Overtime (77) 2,134 2,134 2,134 0 Police Staff Pay 6,685 6, ,653 27,653 27,653 0 Police Pensions (122) 1,326 1,326 1,399 (73) Other Employee Expenses sub total 25,363 25,448 (85) 100, , , Premises 1,358 1, ,905 4,905 4, Transport Expenses ,709 2,709 2, Supplies & Services Equipment Stationery (4) Uniform Doctors ,430 1,430 1,430 0 Communications ,018 2,018 2,018 0 Computing ,840 1,840 1,840 0 Other Supplies (79) 1,033 1,033 1,033 0 sub total 2,287 2,345 (58) 7,735 7,735 7, Air Support Joint & Other Authorities ,142 1,142 1,142 0 Police National Computer Forensic Science Services Support Service Charges less Income Customer & Client Receipts (256) (599) 343 (1,331) (1,331) (1,649) 318 Secondment Income (96) (83) (13) (385) (385) (678) 293 Interest (15) (5) (10) (60) (60) (60) 0 Council Tax Grant Special Grants (245) (236) (9) (980) (980) (980) 0 Capital Financing Costs ,950 2,950 3,250 (300) Transfer to/from (-) Reserve (1,500) (1,500) (1,500) 0 Net Expenditure 29,999 29, , , , Central Govt Funding (23,802) (23,802) 0 (93,991) (93,991) (93,991) 0 Precept (7,411) (7,411) 0 (24,704) (24,704) (24,704) 0 Page 8 of 11

9 Net (Surplus)/Gap (1,214) (1,700) 486 (1,103) (1,103) (2,022) 919 Capital Expenditure This section of the report provides an update on expenditure against schemes in the capital programme for the period ended 30 th June 2013 and the carry forward of expenditure from 2012/13 defrayed to. The table below summarises the capital monitoring position to date. It shows for the period ending 30 th June 2013, the total capital funding for, actual and committed expenditure to date, the variance against funding and for the year ending 31 st March 2013 the capital expenditure to be carried forward into from 2012/13. The details concerning each individual scheme are included in Table 2. Please note that the capital funding for does not yet reflect the carry forward from 2012/13 and it is recommended that the PCC agrees the carry forward of sums against schemes of 1,255,000 not completed in 2012/13 or deferred to. Project Capital Funding Spend & Commitments Variance under / (over) Carry Forward 2012/13 Property 11,700,000 1,759,046 9,940, ,099 IT 2,127, ,962 1,657, ,476 Vehicles 1,100, , , ,581 Equipment 288,092 81, ,299 54,113 Total 15,215,865 2,886,986 12,328,879 1,255,269 Property The major building project this year is the new police headquarters at Aykley Heads which is now into its fourth month of construction. The anticipated expenditure in is now 8,500,000 and for 2014/15 is 5,500,000 and this is consistent with the planned construction programme. It is recommended that the PCC agrees the budget related to the new HQ is amended from 10,000,000 in to 8,500,000 in order to reflect the anticipated spend. There are five other big projects ongoing during and these are: Darlington backlog maintenance which commenced in 2012/13 and is an 18 month (approximately) project; Peterlee (Whitehouse Way) for the relocation of employees from the current headquarters site to new premises in the force area. This property was purchased in 2012/13 and a procurement exercise is ongoing for the fit out; Newton Aycliffe police station decommissioning and new build; Chester le Street police station improvements (includes a revenue contribution of 300,000 to increase budget from 450,000 to 750,000); PSU classroom extension. Page 9 of 11

10 The remaining capital expenditure includes buildings improvements and works relating to legislative compliance. ICT Projects The significant business application projects for this year include: Dynamics development of the police (Red Sigma) and partnership (Blue Delta) systems; Consolidation of Microsoft licences; Development of an electronic records document management system (EDRMS), which is part of the larger new headquarters project; Replacement Case and Custody system for which a procurement exercise is nearing completion. The significant business infrastructure projects for this year include: Integrated Access Management to enable ease of access to Force buildings; Mobile Working project that is grant funded; New HQ project which includes replacement of the telephony system and other infrastructure activities; Airwave mobile terminals; Other ICT infrastructure works arising from the five big projects in the Estates programme. Other Projects The vehicle replacement programme for this year includes some carry over from the 2012/13 programme. Expenditure against the programme has commenced but will be reviewed as part of the wider corporate financial planning exercise that will include consideration of the vehicle hire and own fleet costs and activities. Table 2: Actual as at 30 th June 2013 Scheme Category Capital Funding Spend & Commit ment Variance under / (over) Carry Forw d 2012/13 Property Custody Improvement Buildings Improvement 0 15,896-15,896 15,896 HQ Redevelopment New Build Project 8,500, ,200 7,599,800 Darlington - Improvements Buildings Improvement 550, , , ,000 Asbestos Works 2012/13 Legislative Compliance 0 3,256-3,256 3,256 Accommodation Improvements Buildings Improvement 100,000 24,034 75,966 Custody Improvements Buildings Improvement 50,000 7,538 42,462 Whitehouse Way New Build Project 750,000 8, ,082 Collier Law Decommissioning Miscellaneous Scheme 0 8,640-8,640 8,640 Newton Aycliffe Decommissioning & New Build Policing in Community 500,000 1, ,902 Chester le Street Improvements New Build Project 750,000 84, ,454 PSU Classroom Extension New Build Project 400, ,000 Page 10 of 11

11 Scheme Category Capital Funding Spend & Commit ment Variance under / (over) Carry Forw d 2012/13 ICT Fleet Legislative Improvements Legislative Compliance 100, ,000 Schemes Closed in the Year Miscellaneous Scheme 0 2,307-2,307 2,307 Sub total 11,700,000 1,759,046 9,940, ,099 Mobile Data System Development 157,385 4, ,686 Origin System Development 0 3,150-3,150 20,000 Server Virtualisation/Consolidation Equipment Refresh 10, ,000 Identity Access Management System Development 0 22,102-22, ,000 Internet, Intranet Software Upgrade Closed Scheme 0 3,333-3,333 3,333 C3PO Closed Scheme 0-9,750 9,750 Microsoft Licences Commercial Compliance 250, ,742 17,258 ERDMS System Development 175,000 12, , ,000 Dynamics System Development 365,000 3, ,323 Zanzibar Agresso Home Office Mandation 2,308-2,442 4,750 Darlington Custody New Build Project 0 10,789-10,789 25,404 Case & Custody Replacement System Development 250, , ,000 Port Line Equipment Security Compliance 80 5,760-5,680 5,760 ICCS Upgrade Equipment Refresh 0 43,142-43,142 51,940 CCTV Upgrade Equipment Refresh 0 30,414-30,414 48,448 Holmes Upgrade System Development 2, ,000 EROS Project (Speed Cameras) System Development 0 38,476-38,476 38,476 Telephone System New Build Project 294, ,000 New HQ ICT Infrastructure New Build Project 429,000 1, ,997 66,000 Airwave Mobile Terminals Equipment Refresh 100, ,000 Printing Software System Development 20, ,000 Peterlee ICT Infrastructure New Build Project 20,000 13,879 6,121 Chester-Le-Street ICT Infrastructure New Build Project 55, ,000 Confidential Network Security Compliance 0 56,115-56,115 56,115 Unallocated Miscellaneous Scheme -2, ,000 Whitehouse Way New Build Project 100,000 Schemes Closed in the Year Closed Scheme Sub total 2,127, ,962 1,657, ,476 New Vehicles 2012/13 Fleet Replacement 0 255, , ,581 New Vehicles Fleet Replacement 1,100, , ,396 Sub total 1,100, , , ,581 Equipment 288,092 81, ,299 54,113 Page 11 of 11