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1 Income, innovation and investment Contents Part one Policy... 2 Chapter 1 Definitions... 3 Income... 4 Innovation and ideas... 6 Investment... 6 Chapter 2 Principles... 7 VAT... 9 Part two Policy procedure Chapter 1 Responsibilities All employees West Yorkshire for Innovation (WyFi) Police Forum for Income Generation (PolFIG) Chapter 2 What to do about your idea Part three Information and toolkit Innovation suggestion form Services available from Finance and Business Support Dept Income, innovation and investment Page 1 of 14

2 Part one Policy Income, innovation and investment Policy summary This income, innovation and investment policy procedure provides a framework for all employees of the Police and Crime Commissioner (PCC) and the Chief Constable (CC) when exploring or developing income or funding opportunities, developing innovation or delivering investment. Aim The aims of this policy procedure are to: ensure clarity, transparency, consistency and compliance with the governance arrangements regarding income, innovation and investment; support the delivery of the Police and Crime Plan and the joint strategic aims of the Force and key partners; develop new partnerships and strengthen existing partnerships; maximise the potential of innovation; find new approaches to reinvest in our communities; maximise the community benefits from PCC owned assets; increase revenue to reduce the burden on the public purse; and reduce demands and bring greater efficiencies. Scope This policy procedure applies to all police officers, police staff, volunteers, contractors and partners employed by the PCC or Chief Constable West Yorkshire Police. Where the term 'employee' is used in this policy procedure, this means all of the above. It covers all: areas of income generation including: bids for, and re-investment of, funding that is additional to the Police Grant; and sponsorship and the provision of value added services at reduced cost to the Force; and activity which helps other agencies to access funds which ultimately assist us to meet our obligations as laid out in the Police and Crime Plan. Compliance Police Reform and Social Responsibility Act 2011 Freedom of Information Act 2000 Data Protection Act 1998 Police Act 1996 Local Authorities (Goods and Services) Act 1970 Home Office Circular No. 38/89 Financial Arrangements for Mutual Aid Income, innovation and investment Page 2 of 14

3 PCC s Financial Regulations PCC s Ethical Foreign Policy PCC s Scheme of Consent West Yorkshire Police s Financial Regulations College of Policing Code of Ethics, Code of Practice, Police Act 1996 Other relevant legislative provisions governing competition, state-aid and monopolies. Related policy procedures Corporate identity Gifts and hospitality Further information Further information is available from: No Source 1 West Yorkshire for Innovation (WyFi) intranet site: Income Generation section; and by ing 2 Finance and Business Support intranet site: Management Accounting section; Projects and Costings section; and Risk and Insurance section; and 3 Legal Services. Chapter 1 Definitions Introduction There are three main elements to this policy, these are: income; innovation ideas; investment. It is important to ensure that before developing an income generation or innovation project all are aware of the potential sources of funding and support. All such income or funding must come to the Office of the Police and Crime Commissioner (OPCC) via West Yorkshire for Innovation (WyFi) and in addition, for income to be raised from assets held by the PCC on behalf of the communities of West Yorkshire, via the Strategic Asset Management Board of the OPCC. The WyFi team can assist this process and: ensure that the Police & Crime Commissioner/Chief Constable do not duplicate approaches to funding bodies or partners; ensure that you have considered all the relevant options, issues and risks; provide a realistic opinion on the chances of generating income Income, innovation and investment Page 3 of 14

4 and/or realising an innovation project; identify suitable sources of funding for your innovation or requirement; provide support and guidance so you do not have to develop and undertake the proposal alone; and maximise the impact of reinvestment in the communities of West Yorkshire. In reading and applying this policy it is important that all staff refer to the PCC s Scheme of Delegation and Consent and, in particular, take note of the requirement to obtain prior approval if a proposed activity is likely to be regarded as novel, contentious or repercussive. Income Income Income can be received by the Police and Crime Commissioner or by the Force via the Office of the PCC, as part of a project where they are named as partners, through support given for campaigns or in the form of support given to partners in applying for/receiving external funding and maximising the benefits from assets the PCC holds on behalf of the communities of West Yorkshire, which will complement the aims of the Police and Crime Plan. Sponsorship Sponsorship is the provision of funds, goods, services or other support to the PCC and/or the Force in return for a defined and legitimate benefit. Sponsorship is not just about the obvious marketing benefits to the sponsor or the extra cash or equipment but serves to support a wider collaborative approach (sometimes through the sponsor s corporate social responsibility policy) to delivering safety to the community and an opportunity to engage and build new alliances and strategic partnerships. All sponsorship arrangements must: have due regard to the purpose, values and principles of West Yorkshire Police and the PCC; be expressly pre-approved under the PCC s Scheme of Consent; and where appropriate, be contracted. VAT must be charged for all sponsorship deals and the partners could be from any sector. Examples are community/corporate events or vehicle sponsorship. Generally, sponsorship is subject to a total annual limit of 1% of the Force s budget. Income, innovation and investment Page 4 of 14

5 Donations Donations are where funds, goods or services are given to support activities delivered under the Police and Crime Plan for which no defined benefit is sought or given. All donations: must have due regard to the purpose, values and principles of West Yorkshire Police and the PCC; and their receipt and acceptance must be expressly approved under the PCC s Scheme of Consent. Examples are free hire of a venue, prizes or giving of specialist information or training. External funding External funding relates to a specific grant from a publicly available fund where a bid: is submitted as part of a competitive process; or has been otherwise allocated or commissioned. The grant can only be used: for the specific purpose for which it was originally sought; as agreed in the project plan; and in accordance with any audit or grant conditions. Grants could be from any sector and could be domestic, from the EU or other international sources. Any bids for external funding must be pre-approved by the OPCC and coordinated by the WyFi team. All receipts for external funding must be made through the Office of the PCC. Trading and commissioning of goods and services Trading is the generation of additional income or cost recovery through the sale of in-house expertise, e.g.: training courses; advertising space and alarm fitting; exploitation of intellectual property; hire of police property (such as vehicles) or premises or other community assets owned or operated by the PCC. The PCC: is responsible for commissioning of services and this policy procedure must be read and applied in conjunction with the Commissioning Framework; and must be approached for pre-approval of any trading activity undertaken by the Force in accordance with the arrangements for income, innovation and investment. Income, innovation and investment Page 5 of 14

6 Innovation and ideas Key qualities Innovation is defined as requiring three key qualities: change; originality; and part of an ongoing programme of work. By listening, capturing and responding to the innovative ideas of police colleagues, partners and the public, we identify new ways of working to meet and overcome current and future challenges. Purpose It must: involve some alteration to methods, delivery or outcomes; possess some element of newness in terms of the change introduced; be purposeful with defined objectives set within a programme of work which supports the organisation s mission and vision; and ensure collectively pushing of the boundaries of police, criminal justice service and community safety policy, procedures and practice so that the services delivered to keep communities safe and feeling safer can be developed and enhanced. Investment Introduction Investment has two key definitions within WyFi: delivery of the Safer Communities Fund (SCF); support for third sector groups and for partner agencies who are seeking funding. By investing time in identifying funding information, providing advice and research we can support resilience across third sector partnerships and local authorities. Exploring opportunities for encouraging innovation and increasing investment is a key strategic ambition for all departments, because it reduces the burden on the public purse. This form of investment is different from the PCC s treasury management policy which relates to the management of the PCC s and chief constable s cash flows, banking, money market and capital market transactions placing of funds in relevant accounts to attract interest. Safer Communities The SCF supports projects which seek to bring partners and communities together to tackle priorities in the Police and Crime Plan Income, innovation and investment Page 6 of 14

7 Fund by reinvesting Proceeds of Crime Act (POCA) money back into communities. This grant giving scheme is a simple, inclusive and transparent process. Police and Crime Plan Any potential investment should support the aims of the Police and Crime Plan and its purpose should be clear and have acknowledgment and agreement from the force and the Office of the PCC. Chapter 2 Principles Scheme of consent All applications for revenue streams and capital funding must be consistent with the PCC s Scheme of Consent and the relevant strategies for income, innovation and investment. Additional and not compromise Any activity to generate income or capital must be additional or supplementary to core police, criminal justice service or community safety functions and should not compromise operational independence, nor result in additional, ongoing revenue expenditure. Cost and benefit The true cost of generating additional revenue must be assessed against the appropriate costing model to ensure transparency and compliance with the: relevant legal provisions; and PCC s strategies. Integrity, accountability, and ethical considerations Accountability, integrity and ethical considerations are important for public confidence and any work we carry out should be transparent and open to public scrutiny. When proposing or seeking approval for income, innovation or investment activity, answering the following questions will ensure compliance, mitigate and minimise associated risks while providing the maximum chance of success, not only in terms of generating income and harnessing innovation but also in improving performance: No Consideration 1 Is the proposal consistent with the Financial Regulations? 2 Does the activity support the priorities and outcomes of the West Yorkshire Police and Crime Plan? 3 Does the proposed activity have a clear benefit to the communities of West Yorkshire? 4 Are there any potentially sensitive associations with inappropriate or questionable products, services, promotions, donations or sponsors? Income, innovation and investment Page 7 of 14

8 There may be some products, services, sponsors or donations provided by certain sectors or organisations that are unlikely to be acceptable, e.g. tobacco product manufacturers or organisations involved with weapons supply. Where such sensitivities arise, further discussion and research will be required and ethical issues must be considered in line with the Code of Ethics and any questionable or contentious associations must be highlighted to the OPCC. Particular care needs to be taken when considering arrangements with other countries and the PCC s Ethical Foreign policy must be followed. 5 Is the provider seeking endorsement of a product? Offers of sponsorship or donations with conditions imposed by the provider are also likely to be unacceptable. There must be no obligation attached to any support. Ethical issues must be considered to ensure integrity and accountability. 6 Who else is supporting the activity? Can we involve partners? Have you built in compliance with any conditions set by the funding body? 7 How will the financial and resource activity be planned, prioritised, costed, managed and delivered? 8 Are the relevant bodies already in or about to enter a contractual relationship with the PCC/CC, such as entering the procurement process? 9 Are the proposed contractual agreements adequate to ensure proper control and governance? 10 What are the key risks and have you mitigated or addressed them sufficiently and considered all ethical issues? 11 What are the risks of the PCC/CC becoming unduly dependent on a facility liable to be withdrawn and how has that been mitigated? 12 What is the exit strategy and how will you ensure that lessons are learned for the future? Records All income must be recorded by the Office of the PCC and treated in line with financial instructions and CIPFA guidance. Income, innovation and investment Page 8 of 14

9 VAT Sponsorship VAT will apply to all sponsorship but each case will need to be considered on its own merits. Where VAT applies to linked sponsorship a VAT only invoice will need to be raised. Donations Donations are exempt from VAT provided that they do not provide a defined marketing benefit to the company. Donations that are made which benefit the donor in some way e.g. publicity, are subject to VAT. Further information Further information on VAT issues can be gained by contacting Financial Accounting section, Finance and Business Support Department. Income, innovation and investment Page 9 of 14

10 Income, innovation and investment Part two Policy procedure Chapter 1 Responsibilities All employees Information As an employee, you must ensure that: Step Action 1 you are aware of the potential sources of funding and support and have considered all ethical considerations prior to pursuing and developing an income generation or innovation project in which you must: liaise with your local finance and business support officer before contacting Finance and Business Support Department for advice; 2 potential contributors do not feel obliged to support a project; 3 contributors understand that no preferential treatment will be offered as a result of sponsoring a project; 4 you provide the relevant legal advice and seek an assurance from relevant parties that they have sought their own independent advice; 5 where appropriate, even on small value income, you follow the vetting procedure. This may include local, financial and criminal checks; and 6 you obtain permission to use any intellectual property including logos, badges and branding from the appropriate department. Further information can be sought from the Corporate Communications section. Income, innovation and investment Page 10 of 14

11 West Yorkshire for Innovation (WyFi) Introduction WyFi provides a shared service on behalf of the Police and Crime Commissioner and the Chief Constable. You can contact WyFi by at Information The team: Step Action 1 makes employees aware of the potential sources of funding and support by giving training and briefings regarding opportunities; 2 provides support, guidance and quality assurance to employees developing proposals and ensures that they have considered all the relevant options, issues and risks; 3 researches opportunities, collates ideas and suggestions, coordinates proposals, delivers projects and disseminates information on sources of funding, partnerships and trading or other requirements; 4 provides consultancy and advice on all aspects of income generation, innovation and investment; 5 provides a realistic assessment and evaluation of the likelihood of generating income and/or realising the positive outcomes of an innovative project; 6 advises on, compiles, authors, checks and submits bids; 7 acts as lead in all external funding applications and ensures that the PCC/CC does not duplicate approaches to funding bodies or partners; 8 maximises the impact of reinvestment in the communities of West Yorkshire; 9 represents the PCC/CC at the Police Forum for Income Generation (PolFIG); 10 provides the capability of developing regional projects through PolFIG; 11 supports and develops the delivery of operational policing with partners to make the public safe and feel safer; and 12 supports the work of the Commissioner s Foundation. Income, innovation and investment Page 11 of 14

12 Police Forum for Income Generation (PolFIG) Responsibility PolFIG is responsible for: Step Action 1 sharing best practice and ideas; 2 encouraging collaboration; 3 influencing change; and 4 providing a forum of expertise at a national level on income generation. For further information contact WyFi by Chapter 2 What to do about your idea Information You should contact WyFi who will assess your requirements and provide you with the support and guidance that is needed to seek funding, develop the innovation idea, support the build of collaborative consortiums and work with you to support the communities of West Yorkshire. Examples of the type of support you can expect are: search for appropriate funding and/or provide examples of sponsorship letters and external funding bids; search for other complementary projects or activities that might strengthen yours; suggest, present to and meet potential partners/sponsors with you or on your behalf; draft and develop a bid or sponsorship package in line with requirements and assess and evaluate the proposal; manage the bid process on your behalf; and offer project delivery expertise to ensure your project gets off the ground. Income, innovation and investment Page 12 of 14

13 Income, innovation and investment Part three Information and toolkit Innovation suggestion form Form Innovation Suggestion Form Services available from Finance and Business Support Dept Introduction The following services are available: Section Management accounting Projects and costings Risk and insurance Financial accounting Services provided group types of projects to enable funds to be tracked for audit purposes; provides advice on reconciliation; provides advice and guidance on year end procedures; and ensures that auditable projects are correctly managed and recorded. provides advice, guidance and set fees and charges for goods and services. provides advice and guidance. provides advice on VAT and banking issues. Income, innovation and investment Page 13 of 14

14 Income, innovation and investment Policy database administration Document information The table below lists the details relating to this document. Item Details Document title: Income, innovation and investment Owner: Force Performance Improvement Unit Author / Reviewer: Insp Andy Staniforth Date of last review: 21/07/2015 Date of next review: 21/07/2018 Equality and Human Rights Assessment I am satisfied this assessment demonstrates compliance with the Human Rights Act 1998 and the General Duties under the Equality Act 2010, and that Due Regard has been given to the need to eliminate unlawful discrimination; advance equality of opportunity; and foster good relations. Lead: Author: Date: Date: Department: Form 112 Link to version held on Registry Revision information The table below details revision information relating to this document. Topic Title Date of last update Income, innovation and investment Page 14 of 14

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