Skip to content Quick exit
REPORT CRIME ONLINEEMERGENCY CALL 999
REPORT CRIME ONLINEEMERGENCY CALL 999

Consolidated statement of accounts 2020/21

The Police and Crime Commissioner for Hertfordshire group

Organisational overview and external environment 

Hertfordshire police area covers 634 square miles, 70% of the county is designated as rural, whilst four centres of population, Hemel Hempstead, St Albans, Stevenage and Watford, have between 50,000-100,000 residents.  The standard of living is mostly high, with low unemployment and residents are generally healthy, well-educated and well paid, however there are areas of relative deprivation and social exclusion.  The current estimated population of 1.18m, continues to increase, having already increased by approximately 64,872 (5.8%) since 2011. Some 19.2% of Hertfordshire residents are from ethnic minority groups. 

The constabulary maintains a strong local policing focus through ten Community Safety Partnerships aligned to local authority areas. Each has dedicated neighbourhood, local response and crime teams, supported by inter-agency partnerships and centralised specialist support. There is significant collaboration, chiefly through its strategic alliance with Bedfordshire and Cambridgeshire police forces, which provides protective services and a range of other operational and support functions that increase effectiveness and efficiency. The Chief Constable and Police and Crime Commissioner are also working closely with local partner organisations – the Hertfordshire Community NHS Trust, the East of England Ambulance Service, and the Hertfordshire County Council and the Fire and Rescue Service – to achieve greater efficiencies. 

Hertfordshire’s 2020/21 Net Revenue budget was £217.341m.  The budgeted workforce for 2020/21 comprised of 2,100 police officers, 223 police community support officers, 1,562 police staff. 

Collaboration through working with Bedfordshire Police and Cambridgeshire Constabulary (BCH) continues to play an important part in the delivery of policing services and the generation of future savings.  Full details of Hertfordshire’s financial transactions with Bedfordshire Police and Cambridgeshire Constabulary are set out in note 29 below.

Governance 

The current governance arrangements for policing were introduced by the 2011 Police Reform and Social Responsibility Act.  The act established two corporations sole, the Police and Crime Commissioner who replaced the police authority and the Chief Constable.  The two corporations sole are both schedule 2 bodies under the Local Audit and Accountability Act 2014 and so are both required to publish accounts and are both subject to audit.

The relationship between the two corporations sole is reflected in accounting terms by the existence of a group relationship.  Group relationships require the completion of a consolidated group Statement of Accounts in addition to those for the individual entities.  This document is the Statement of Accounts for the Group and the Police and Crime Commissioner for Hertfordshire (PCC).  A statement of accounts for the Chief Constable of Hertfordshire is published as a separate document.  Note 4 - Critical Judgements in Applying Accounting Policies, sets-out the allocation of expenses, income and balances between the two corporations sole. 

Further detail on governance arrangements is contained within the Annual Governance Statement (Updated AGS to follow).

Operational model, strategy and resource allocation 

The role of the PCC 

The PCC has a statutory duty and electoral mandate to ensure an efficient and effective police service and to hold the Chief Constable to account on behalf of the public.  The PCC is the recipient of funding relating to policing and crime reduction, including government grant, council tax precept and other sources of income.  How this money is allocated is a matter for the PCC in consultation with the Chief Constable, or in accordance with any grant terms.

The PCC is responsible for setting the Police and Crime Plan and budget, monitoring financial outcomes and the approval of medium-term financial plans in consultation with the Chief Constable. The PCC is responsible for approving the overall framework of accountability and control, and monitoring compliance which includes the Police and Crime Plan, the Medium-Term Financial Strategy, the Annual Revenue Budget, the Capital Programme, Financial Regulations, the Treasury Management Strategy, the Estate Strategy and Asset Management plans, the Risk Management Strategy and the Governance policies. 

In 2019, following public consultation, the PCC published a refreshed Police and Crime Plan entitled ‘Everybody’s Business:  The Community Safety and Criminal Justice Plan 2019-2024’.  The plan is structured around the four key themes: 

  • Building on success
  • Putting victims at the centre
  • Public focus
  • Business sense

The role of the Chief Constable 

The Chief Constable is responsible for maintaining the Queen’s Peace and has direction and control over the Constabulary’s officers and staff. The Chief Constable holds office under the Crown, but is appointed by the PCC.  The Chief Constable is accountable to the law for the exercise of police powers and to the PCC for the delivery of efficient and effective policing, management of resources and expenditure by the Constabulary. At all times the Chief Constable, his constables and staff, remain operationally independent in the service of the public. 

The Chief Constable has day to day responsibility for financial management of the Constabulary within the framework of the agreed budget allocation and levels of authorisation issued by the PCC and must ensure that the financial management of the allocated budget remains consistent with the objectives and conditions set by the Commissioner. 

In prioritising resourcing, including re-investment requirements, the Chief Constable is mindful of the five key priorities set out in the PCC’s plan:

  • Put victims first
  • Keep crime lLow
  • Protect local policing
  • Increase officer numbers
  • Keep tax low 

The Constabulary’s response to the Police and Crime Plan is set-out in the Operational Policing Plan.

Funding 

The graph below shows an analysis of the PCC’s key sources of gross revenue income during 2020/21 totalling £250.3m.  Home Office Settlement grant paid to the PCC by central government accounted for 50.2% of all gross income.  This central government grant plus income raised by Council Tax forms the PCC’s budget requirement / net revenue budget for 2020/21 of £217.3m.

Revenue spending 2020/21 

The table below shows revenue expenditure against budget for 2020/21.

Revenue spending 2020/21
 

Revised Budget £’m

Outturn £’m

Outturn Variance £’m

%

Local Policing

116.654

116.399

-0.255

-0.2

Operational Support

35.840

34.975

-0.865

-2.4

Collaborate Protective Services

26.724

26.680

-0.044

-0.2

Organisational Support

29.973

30.473

0.501

1.7

Hertfordshire Corporate Budgets

4.789

5.510

0.721

15.1

Transfer from Reserves

-0.500

-0.288

0.212

 42.4  

TOTAL CONSTABULARY BUDGET

213.479

213.749

0.270

0.1

Office of the Police & Crime Commissioner

3.862

2.667

-1.195

-30.9

TOTAL REVENUE BUDGET* 

217.341

216.417

-0.925

-0.4

*Over/(under) spend

The overall outturn position of a -£0.925m underspend arose across a number of offsetting areas as follows:  Police Officer Pay, Overtime and allowances overspent by £1.475m as the Constabulary recruited heavily to both meet and then exceed its National Police Uplift target of an additional 91 new police officers post during the year.  As a result, the Constabulary finished the year 88 police officers above the 2020/21 budgeted establishment of 2,100, representing a head start upon the additional 167 new police officer posts in the 2021/22 budget.  An underspend of -£1.452m on Police Staff, Agency and Police Staff Overtime costs as expenditure on police staff pay was suppressed throughout the year due to difficulties in recruiting and the loss from PCSOs becoming Police Officers. Finally, Constabulary Non-Pay Budgets overspent by £0.264m.  In total for the year the Constabulary overspend by £0.270m.  The OPCC underspend arose predominantly due to the impact of the pandemic on the commissioning of services from third parties. 

An analysis of the types of area income and expenditure was incurred on is set-out in Note 7 - Expenditure and Income Analysed by Nature.

Capital spending 2020/21 

The table below shows capital expenditure against budget for 2020/21.

Capital spending 2020/21

 

Outturn

£’m

Approved Budget 2020/21

8.235

Brought Forward From 2019/20

0.602

In Year Application of Grants and Revenue Contributions

3.259

Revised Budget 2020/21

12.096

Outturn Expenditure

6.681

Variance

-5.415

Capital investment in 2020/21 totalled £6.681m and included expenditure on maintaining and enhancing the estate of totalling £1.694m (including 0.797m work on the HQ redevelopment, £0.291m on student police officer training capacity, £0.077m Hemel Hempstead refurbishment, and £0.463m on minor works), ICT capital expenditure of £2.880m (including £0.890m - PC and laptop replacement, £0.377m -mobile communications, £0.692m for network and infrastructure, and £0.920m on corporate systems), £1.682m Annual fleet replacement programme through Chiltern Transport Consortium and £0.396m - Technical and specialist equipment.

Risks and opportunities 

Risks 

The main risks which the PCC faces in delivering the responsibilities of his role are: 

  • Inability to deliver commitments in the Police and Crime Plan (including those reliant on partners) would have an impact on the effectiveness and efficiency of the PCC and reputational damage.
  • Failure to deliver the estates strategy would impact on the effectiveness and efficiency of the police service as well as achievement of the Medium Financial Plan and police and crime plan as set out above.
  • Failure to achieve the Medium-Term Financial Plan would impact on service delivery, reputation, efficiency and strategic direction.
  • Failure to adhere to specified Government grant conditions may lead to the failure to secure ongoing funds and reputational damage.

Opportunities 

The main opportunities that arose in 2020/21 were through the continued work of the Hertfordshire Emergency Services Collaboration Board (HESCB); which included: 

  • the Fire Chief Officer team co-location to the Headquarters site along with exploration of further opportunities for closer operational integration; and
  • progression of estates projects following the strategic asset review of all three blue light services property assets; for example, significant progress on both the police HQ redevelopment (Stanborough) project and the joint training facilities (JESA) at Longfield. 

Financial Impact of COVID-19 

The COVID-19 pandemic impacted on the organisation to varying degrees during 2020/21. 

  • Throughout the year an operational team was maintained whose initial focus was upon police officer abstraction levels (which remained relatively low), the sourcing of Personal Protective Equipment (PPE) in sufficient quantities and of the requisite quality to protect frontline officers in accordance with Public Health England and College of Policing guidelines, and the provision of Covid safe work places including the equipment required to enable working from home were this could be done effectively.
  • The need to police enforcement of lockdown restrictions required the deployment of additional resources impacting upon levels of police officer pay including overtime.
  • Income levels decreased during the year, in particular from Driver Speed Awareness courses, court fees and from Luton Airport.
  • During the year Government support was announced on a piecemeal basis covering a majority of the above costs through Home Officer grant.
  • Further impacts were seen upon the collection by district councils of the Police Precept which in line with most forces had moved to a relatively small deficit for the year, and the tax base upon which the precept is calculated, which reduced reflecting more pessimistic payment projections in coming years impacting upon the PCC’s ability to generate precept income.  Government has provided additional funding to help offset some of these pressures.

Performance and value for money 

OPCC 

Performance against the Commissioner’s plan is monitored regularly, by the Executive Management Team (EMT), through the use of the BCH Action Management System (AMS) that allows for the recording, assignment and management of actions and tasks. 

In addition, the statutory annual report (on performance is presented to the Police and Crime Panel (PCP)) each year before publication; the 2020/21 report on performance was provided to the PCP meeting held on 24 June 2021. 

Her Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) 

HMICFRS are commissioned by the Home Secretary to undertake inspections of police forces and fire and rescue services. 

PEEL (Police Effectiveness, Efficiency and Legitimacy) is HMICFRS’s annual assessment of police forces in England and Wales. Forces are assessed on their effectiveness, efficiency and legitimacy. Until 2018/19 each was inspected separately each year. HMICFRS has now adopted an integrated approach to inspections. Integrated PEEL Assessment (IPA) combines the forces into a single inspection on the areas of PEEL. 

Hertfordshire Constabulary was inspected by HMICFRS in tranche two with their report published in September 2019 and found: 

  • The extent to which the force is effective at reducing crime and keeping people safe is good.
  • The extent to which the force operates efficiently and sustainably is good.
  • The extent to which the force treats the public and its workforce legitimately is good. 

No further PEEL inspection has been undertaken since the above due to COVID. 

Victim satisfaction 

Since November 2020 the Constabulary has used echo as a way of gaining victim satisfaction.  To date feedback has been received from 854 victims who scored the Constabulary as follows: 

  • Q1 / Did we meet their need? 3.9 out of 5
  • Q2 / Were they kept informed? 4 out of 5
  • Q3 / Overall satisfaction 4 out of 5 (equivalent to 80%) 

Crime Survey of England and Wales 

The most recent Crime Survey of England and Wales(CSEW) for the 12 months to 31st December ) was published in May 2021 and can be accessed at Crime in England and Wales - Office for National Statistics (opens in a new window.  The next release covering the 12 months to 31 March 2021 is due for release in July 2021.  The survey set out: 

  • That 80.2% of those surveyed in Hertfordshire had confidence in their local police (second MSG) and 61.2% believed they were doing a good or excellent job (also second MSG).
  • Hertfordshire was second in its MSG for Public Confidence’, second in its MSG for residents perceiving that they could rely on their local police and 6th within its MSG for residents’ perception of be treated fairly.
  • Hertfordshire was in 2nd place in its MSG for feeling that the police (and council) are dealing with Crime.
  • For the end of 2019/20 in relation to 999 emergency call handling, data indicated 91% of calls were answered within 10 seconds. With regards to non-emergency calls, end of year figures indicated 78% were answered within 30 seconds and 92% answered within 2 minutes).

Recorded crime 

Within the constabulary’s Most Similar Group (MSG) of eight forces, the level of recorded crime in Hertfordshire puts us in second position at 60.2 crimes per 1,000 population compared to an MSG average of 68.5. (MSG data 12 months to March 2021).  In Hertfordshire and nationally recorded crime levels, on the whole, saw significant reductions on the back of the restriction brought in during the pandemic making meaningful comparisons with the previous year difficult. 

For 2020/21: 

  • All recorded crime has decreased by 13.9% a decrease of 11,562 crimes compared to the same period in the previous year. The total number of crimes being 71,557 as opposed to 83,119 the previous year.
  • Residential Burglary Dwelling offences had decreased by 33.7% to 2,576 offences (1312 fewer than recorded in the previous year), the constabulary was thirdposition in the MSG.
  • Robbery has seen a decrease of 38.2% to 633 offences (391 less crimes than recorded in the previous year), the constabulary was third position in its MSG.
  • Vehicle Offences has decreased by 20.4% to 6,947 offences (1782 less offences than recorded in the previous year), the constabulary was eighth position in its MSG.
  • Violence Against the Person offences decreased by 1.4% to 25,601 offences (352 less offences than recorded in the previous year), the constabulary was first in its MSG totals.
  • Criminal Damage decreased by 15.7% to 7,009 offences (1,303 fewer offences than recorded in the previous year), the constabulary was first position in its MSG.
  • Thefts from Shops decreased by 27.8% to 6,219 (2,397 less offences than recorded in the previous year), the constabulary was worst (eighth) in its MSG.
  • Theft from Person decreased by 51.3% to 647 (682 less offences than recorded in the previous year), the constabulary was seventh lowest in its MSG.
  • Possession of drugs was up 4.8% (120 more crimes) Trafficking was down by 12.6% (56 less crimes). The Constabulary was third in its MSG for Drug Offences (third for Possession, first for Trafficking) though in this case, ‘worse’ figures are more likely an indication of greater proactivity.
  • Domestic Abuse offences had increased by 2.0% to 12719 (253 more offences than recorded in the previous year). Some of this increase remains attributable to stronger compliance with National Crime Recording Standards whilst national figures and comparisons are not felt entirely accurate. All Recorded Rape was down 52 crimes (6.5%) over the same period in the previous year; first (lowest) position within our MSG.  The force continued to prioritise the response to these areas and this is reflected in the force Strategic Assessment.
  • Reported anti-social behaviour had increased by 9.0% (2,278 more reports). ASB is broken down into three recorded types; Environmental, Nuisance and Personal. The increases were noted within the Nuisance categories, and in Environmental with a decrease in Personal. There is no MSG position available.
  • The constabulary’s all crime outcome rate concluded at 14.6%. This represented an increase of 1.5% points against the previous year. The constabulary was fourth highest amongst its MSG Group.

Outlook

The Net Revenue Budget for 2020/21 was set at £235.0m compared to £217.3m for 2020/21.  This increase has enabled £10.6m of investment in addition to meeting £3.6m of Standstill Costs off set by -£1.5m of savings.  The increase in budget was been funded by a £15 rise in the Band D council tax and an additional £7.4m of core Home Office grant. 

The table below sets-out the projected changes in available funding and resultant savings to close the budget gap over the next four years.  The following assumptions have been used:  A cash freeze then 1% and 2% p.a. increase in grant funding from 2022/23, a £5 p.a. increase in the level of council tax, a cash freeze then 1% p.a. increase in pay costs and finally no-pay standstill costs increasing by 1% p.a.  It is also assumed that investment needs will be circa £0.5m p.a.

Outlook

 

2021/22 £m

2022/23 £m

2023/24 £m

2024/25 £m

Grant Funding

(7.351)

-

(1.342)

(2.711)

Council Tax Income Taxbase & Collection Fund

1.394

(0.792)

(1.485)

(1.537)

Council Tax Income Precept Increase

(6.756)

(2.269)

(2.301)

(2.333)

Standstill Costs

3.605

3.067

5.698

7.106

Investment

10.616

0.500

0.500

0.500

Required Savings

(1.508)

(0.506)

(1.070)

(1.025)

Budget Gap

0.000

0.000

0.000

0.000

The above shows that, real terms resources are projected to fall each year against increasing standstill costs and pressures. 

As at 31 March 2021 the PCC has usable revenue reserves of £23.125m with an additional £7.452m of ring-fenced capital receipts. 

Basis of preparation 

The PCC has a statutory duty to approve and publish a Statement of Accounts covering a 12-month reporting position. These accounts cover the period 1st April 2020 to 31 March 2021 and have been compiled in accordance with recommended practice from the Chartered Institute of Public Finance and Accountancy (CIPFA). The format is largely prescribed in the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom.

These accounting standards set out the format of the Accounts and the concepts and principles that should be used in deciding on the appropriate treatment of transactions and balances within the Accounts.  The financial relationship between the Chief Constable and the PCC is determined by the key elements of the legislative framework as well as local arrangements set-out in the Scheme of Governance and the Financial Regulations. 

The Scheme of Governance and the Financial Regulations set-out that strategic control; ultimately the overarching responsibility for setting the Police and Crime Plan, holding the Chief Constable accountable for the delivery of an efficient and effective police force and the responsibility for the appointment and dismissal of the Chief Constable, is exercised by the PCC.  As such the Accounts of the PCC contain not only the direct costs of his Office but also capital accounting transactions and balances associated with his control over the strategic non-current assets such as Land and Buildings as well as all cash backed reserves. 

The Chief Constable has daily direction and control over all police officers and a great majority of police staff and so his Accounts contain the direct cost of employment and other related costs and balances associated with these staff. 

The Accounts of the PCC contain the direct costs of his Office, commissioning budgets, capital accounting transactions and balances associated with his control over the strategic non-current assets such as Land and Buildings as well as all cash backed reserves. 

Further details of this approach are set out below in Note to the Accounts Number 4 – ‘Critical Judgements in Applying Accounting Policies’.

These accounts include an analysis of the Group and the PCC’s financial affairs and the financial position at 31 March 2021.  The Group consists of the Police and Crime Commissioner for Hertfordshire and the Chief Constable of Hertfordshire Constabulary.  The accounts comprise of: 

a) The Statement of Responsibilities for the Statement of Accounts, which sets out the responsibilities of both the PCC and the responsible Chief Finance Officer for the preparation of the Accounts. 

b) The Comprehensive Income & Expenditure Statement, is a summary of the income and expenditure received and used to provide services during the year and shows how the PCC has funded the cost of net expenditure incurred at the request of the Chief Constable by an intra-entity transfer.

c) The Movement in Reserves Statement shows the movement in the year on the different reserves held by the PCC, analysed into ‘usable reserves’ and other reserves.  The Surplus or (Deficit) on the Provision of Services line shows the true economic cost of providing the PCC’s services, more details of which are shown in the Comprehensive Income & Expenditure Statement. 

d) The Balance Sheet, which shows the value as at the balance sheet date of the assets and liabilities recognised by the Group and the PCC.

e) The Cash Flow Statement, which summarises the inflows and outflows of cash arising from transactions with third parties for revenue and capital purposes.

f) Notes to the Accounts, these comprise a detailed analysis of the summarised financial information in the Core Financial Statements.  These also set out the accounting policies adopted by the Group and the PCC, which explain the basis on which the financial transactions are presented. 

g) The Annual Governance Statement – The statement sets out the results of the annual review of governance and internal controls within the Office of the PCC.  The statement reports on any significant weaknesses and the actions undertaken to rectify these. 

h) Police Officer Pension Fund Account - This identifies the payments in and out of the Police Officers Pension Fund Account for the year.

Investments 

The PCC’s policy on investments is set out in the Annual Treasury Management Strategy.  The primary consideration for the Strategy is security of the PCC’s funds.  The secondary consideration is liquidity, ensuring that sufficient funds are available to meet forecasted cash flow requirements.  Only once both of these matters have been taken into account will the yield be considered.  The Strategy sets out the restrictions on the level of individual investments in order to spread the associated risks.  In 2020/21 the PCC received £0.118m of investment interest. See note 21 for further details.

Borrowing 

The PCC is able to determine his own capital borrowing requirements in accordance with the CIPFA Code of Practice on Prudential Borrowing.  In recent years capital expenditure has largely been funded by capital receipts, however in 2020/21 £0.764m was funded from the Capital Financing Requirement.  An increased reliance on the use of Capital Financing Requirement has been factored into the Medium-Term Plan. 

At 31 March 2021, the PCC had outstanding long-term loans of £18.000m incurring an annual interest charge of £0.780m.  The PCC uses short term borrowing to help manage liquidity levels, however there were no short-term loans held at 31 March 2021. 

Disclosed pensions assets or liabilities 

The Chief Constable’s and the PCC’s police staff employees are able to join the Local Government Pension Scheme (LGPS) administered by Hertfordshire County Council.  The pension fund pays the pensions of member employees upon retirement and receives contributions from employees together with an employer’s contribution from the Chief Constable and PCC.  Every three years the fund’s appointed actuary assesses how much money is in the fund and whether this is sufficient to meet the potential call from staff as they retire at a future date. 

Police Officers are eligible to join the national Police Pension Schemes which is an unfunded defined benefit final salary scheme administrated by the Chief Constable.  Unfunded means that there are no investment assets built up to meet the pension liabilities, and cash has to be generated to meet actual pension payments as they eventually fall due. 

The net amount charged to the Police Fund is that payable for the year in question in accordance with the statutory requirements governing the pension fund.  Where this amount does not match the amount charged to the Comprehensive Income and Expenditure Statement any difference is transferred to the pension reserve on the balance sheet via the Movement in Reserves Statement in order that there is no impact on the Group’s revenue expenditure funded from taxation.  The Group’s liability during 2020/21 was limited to employer contributions equivalent to 31.0% of police officer pensionable pay with the Home Office paying the balance of any deficit on the Police Pension fund.  Further details are shown in the accounts of the Police Pension Fund.

There are many factors, including external economic factors that can affect the financial position of the fund.  As a result, the Group’s share of the Hertfordshire Local Government Pension Scheme Fund and Police Pension funds, shows a net liability of £2.219bn as at 31 March 2021 (£1.975bn at as 31 March 2020).  The liability is a notional amount as it would only fall due if all circumstances remained as they are now until the current contributors retire and the Chief Constable did not seek to address the matter.  The liability is a notional amount as it would only fall due if all circumstances remained as they are now until the current contributors retire and the Group did not seek to address the matter.  The liability on the balance sheet is matched with an equivalent pension reserve.  Note 38 gives further details.

Balance sheet 

The balance sheet shows the net worth of the Group as at 31 March 2021 is -£2.098bn consisting of General Police Fund £7.715m, Earmarked Reserves £15.410m, Unapplied Capital Receipts £7.452m, Pension Reserves of -£2.219bn and Other Unusable Reserves £89.863m. 

Further information on the financial statements presented in this document can be obtained from the Head of Finance at the Constabulary on 01707 354241 or by email

Ian Rooney
Chief Finance Officer to the Police and Crime Commissioner for Hertfordshire

The PCC for Hertfordshire’s responsibilities 

The PCC is required to:

  • make arrangements for the proper administration of the PCC’s financial affairs and to secure that one of its officers has responsibility for the administration of those affairs.  For Hertfordshire, that officer is the Police and Crime Commissioner’s Chief Finance Officer;
  • manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets;
  • approve the Statement of Accounts by the 30 September 2021. 

I confirm that I approve these accounts following completion of the audit. 

Signed: *

David Lloyd - Police and Crime Commissioner for Hertfordshire 

 

Date:

The PCC for Hertfordshire’s Chief Finance Officer's responsibilities 

The Chief Finance Officer is responsible for the preparation of the Police and Crime Commissioner’s Statement of Accounts in accordance with proper practices as set out in the CIPFA / LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2020/21 (the Code). 

In preparing this Statement of Accounts, the Chief Finance Officer has:

  • selected suitable accounting policies and applied them consistently;
  • made judgements and estimates that were reasonable and prudent;
  • complied with the Code. 

The Chief Finance Officer has also: 

  • kept proper accounting records which were up to date;
  • taken reasonable steps for the prevention and detection of fraud and other irregularities. 

I confirm this Statement of Accounts gives a true and fair view of the financial position of the PCC for Hertfordshire at the accounting date and its income and expenditure for the year ended 31 March 2021. 

Signed: *

Ian Rooney – PCC’s Chief Finance Officer 

Date: 

* Official signed version is held at Police HQ in Welwyn Garden City

Independent auditor's report to the Police and Crime Commissioner for Hertfordshire

To be updated upon completion of audit.

Comprehensive income and expenditure statement 2020/21 

This statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from taxation. The PCC raises taxation to cover expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement below. 

Group comprehensive income and expenditure statement 2020/21

Group comprehensive income and expenditure statement 2020/21

2019/20

 

 

 

2020/21

 

Gross Expenditure

£’000

Gross Income

£’000

Net Expenditure

£’000

Note

 

Gross Expenditure

£’000

Gross Income

£’000

Net Expenditure

£’000

131,730

-1,213

130,517

 

Local Policing

140,659

-1,363

139,296

35,907

-4,732

31,175

 

Protective Services

36,343

-3,796

32,547

29,999

-180

29,819

 

Operational Support

44,462

-2,310

42,152

49,054

-2,342

46,712

 

Organisational Support

38,484

-1,827

36,657

11,981

-3,672

8,309

 

Corporate Budgets

10,746

-5,868

4,878

1,855

-12

1,843

 

Office of the PCC

1,861

-1

1,860

3,035

-2,235

800

 

PCC Commissioning

3,665

-2,679

986

-

-

-

38

Past Service Pension Costs

-

-

-

263,561

-14,386

249,175

 

Cost of Services

276,220

-17,844

258,376

 

 

-15,957

12

Other Operating Expenditure

 

 

-13,630

 

 

46,614

13

Financing and investment income and expenditure

 

 

45,351

 

 

-207,262

14

Taxation and Non-Specific Grants

 

 

-218,863

 

 

72,570

 

(Surplus) or Deficit on the Provision of Services

 

 

71,234

 

 

-6,243

27

(Surplus) or Deficit on revaluation of Property, Plant and Equipment Assets

 

 

1,138

 

 

-220,212

38

Re-measurement of the net defined benefit liability

 

 

180,713

 

 

-226,455

 

Other Comprehensive Income and Expenditure

 

 

181,851

 

 

-153,885

 

Total Comprehensive Income and Expenditure

 

 

253,085

PCC comprehensive income and expenditure statement 2020/21

PCC comprehensive income and expenditure statement 2020/21

2019/20

 

 

 

2020/21

 

Gross Expenditure

£’000

Gross Income

£’000

Net Expenditure

£’000

Note

 

Gross Expenditure

£’000

Gross Income

£’000

Net Expenditure

£’000

5,723

-

5,723

 

Local Policing

4,213

-

4,213

1,560

-

1,560

 

Joint Protective Services

1,089

-

1,089

1,303

-

1,303

 

Operational Support

1,332

-

1,332

2,131

-

2,131

 

Organisational Support

1,153

-

1,153

1,855

-12

1,843

 

Office of the PCC

1,861

-1

1,860

3,035

-2,235

800

 

PCC Commissioning

3,665

-2,679

986

-

-

-

38

Past Service Pension Costs

-

-

-

15,607

-2,247

13,360

 

Cost of Services

13,313

-2,680

10,633

 

 

-15,957

12

Other Operating Expenditure

 

 

-13,630

 

 

559

13

Financing and investment income and expenditure

 

 

713

 

 

-207,262

14

Taxation and Non-Specific Grants

 

 

-218,863

 

 

220,774

15

Funding to the Chief Constable for financial resources consumed

 

 

227,141

 

 

11,474

 

(Surplus) or Deficit on the Provision of Services

 

 

5,994

 

 

-6,243

27

(Surplus) or Deficit on revaluation of Property, Plant and Equipment Assets

 

 

1,138

 

 

88

38

Re-measurement of the net defined benefit liability

 

 

1,191

 

 

-6,155

 

Other Comprehensive Income and Expenditure

 

 

2,329

 

 

5,319

 

Total Comprehensive Income and Expenditure

 

 

8,323

Movement in reserves statement 

This statement shows the movement during the year on the different reserves, analysed into ‘usable reserves’ (i.e. those that can be applied to fund expenditure or reduce local taxation) and ‘unusable reserves’ such as unrealised gains on revaluation reserves.  The Surplus or Deficit on the Provision of Services line shows the true economic cost of providing services, more details of which are shown in the Comprehensive Income and Expenditure Statement.  These are different from the statutory amounts required to be charged to the Police Fund Balance for council tax setting purposes.

Group movement in reserves 2020/21

Group movement in reserves 2020/21

 

General Fund

 

£’000

Capital Receipts Reserve

£’000

Total

Usable Reserves

£’000

Unusable Reserves

 

£’000

Total Group Reserves

 

£’000

Balance at 31 March 2019 carried forward

24,790

2,283

27,073

-2,026,632

-1,999,559

Movement in reserves during 2019/20

 

 

 

 

 

Total Comprehensive Income and Expenditure

-72,570

-

-72,570

226,455

153,885

Adjustments between accounting basis and funding basis under regulations*

69,294

2,236

71,530

-71,530

0

Net Increase / (Decrease) in Year

-3,276

2,236

-1,040

154,925

153,885

Balance at 31 March 2020 carried forward

21,514

4,519

26,033

-1,871,707

-1,845,674

Movement in reserves during 2020/21

 

 

 

 

 

Total Comprehensive Income and Expenditure

-71,234

-

-71,234

-181,851

-253,085

Adjustments between accounting basis and funding basis under regulations*

72,844

2,933

75,777

-75,777

0

Net Increase / (Decrease) in Year

1,611

2,933

4,544

-257,628

-253,085

Balance at 31 March 2021 carried forward

23,125

7,452

30,577

-2,129,335

-2,098,759

* See Note 10

PCC movement in reserves 2020/21

PCC movement in reserves 2020/21

 

General Fund

 

£’000

Capital Receipts Reserve

£’000

Total

Usable Reserves

£’000

Unusable Reserves

 

£’000

Total Group Reserves

 

£’000

Balance at 31 March 2019 carried forward

24,790

2,283

27,073

108,959

136,032

Movement in reserves during 2019/20

 

 

 

 

 

Total Comprehensive Income and Expenditure

-11,474

-

-11,474

6,155

-5,319

Adjustments between accounting basis and funding basis under regulations*

8,198

2,236

10,434

-10,434

0

Net Increase / (Decrease) in Year

-3,276

2,236

-1,040

-4,279

-5,319

Balance at 31 March 2020 carried forward

21,514

4,519

26,033

104,680

130,713

Movement in reserves during 2020/21

 

 

 

 

 

Total Comprehensive Income and Expenditure

-5,994

-

-5,994

-2,330

-8,324

Adjustments between accounting basis and funding basis under regulations*

7,604

2,933

10,537

-10,537

-

Net Increase / (Decrease) in Year

1,611

2,933

4,544

-12,867

-8,324

Balance at 31 March 2021 carried forward

23,125

7,452

30,577

91,813

122,388

* See Note 10

Balance sheet 

The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Group and the PCC.  The net assets (assets less liabilities) are matched by the reserves held.  Reserves are reported in two categories. The first category is usable reserves, i.e. those reserves that may be used to provide services or reduce council tax, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use.  The second category of reserves includes reserves that hold unrealised gains and losses (for example, the Revaluation Reserve), where amounts would only become available to provide services if the assets are sold; and reserves that hold timing differences shown in the Movement in Reserves Statement line ‘Adjustments between accounting basis and funding basis under regulations’.

Balance sheet

PCC

Note

 

Group

31 March 2020

£’000

31 March 2021

£’000

31 March 2020

£’000

31 March 2021

£’000

137,314

128,248

16

Property, Plant and Equipment:

137,314

128,248

3,241

2,660

19

Intangible Assets

3,241

2,660

2,500

2,500

25

Long-Term Investments

2,500

2,500

140

89

29

Long-Term Debtors

140

89

143,195

133,497

 

Long-Term Assets

143,195

133,497

 

 

 

 

 

 

-

-

25

Short-Term Investments

-

-

7,053

9,638

22

Short-Term Debtors

28,860

26,818

5,056

9,048

30

Cash and Cash Equivalents

5,056

9,048

5,109

-

24

Intra-Entity Debtor

-

-

17,218

18,686

 

Current Assets

33,916

35,866

 

 

 

 

 

 

-4,079

-6,053

23

Short-Term Creditors

-20,335

-24,908

-6,210

-210

 

Short-Term Borrowing

-6,210

-210

-

-

27

Provisions for Accumulated Absences

-2,391

-4,778

-

-2,705

24

Intra-Entity Creditor

-

-

-10,289

-8,968

 

Current Liabilities

-28,936

-29,896

 

 

 

 

 

 

-

-

 

Provisions

-442

-1,030

-17,998

-17,998

21

Long-Term Borrowing

-17,998

-17,998

-1,414

-2,828

38

Other Long-Term Liabilities

-1,975,409

-2,219,198

-19,412

-20,826

 

Long Term Liabilities

-1,993,849

-2,238,226

130,712

122,389

 

Net Assets / (Liabilities)

-1,845,674

-2,098,759

 

 

 

 

 

 

26,033

30,577

26

Usable Reserves

26,033

30,577

104,679

91,813

27

Unusable Reserves

-1,871,707

-2,129,335

130,712

122,389

 

Total Reserves

-1,845,674

-2,098,759

Signed: *

Ian Rooney – Chief Finance Officer

Date:

* Official signed version held at Police HQ in Welwyn Garden City

Cash flow statement 2020/21 

The Cash Flow Statement shows the changes in cash and cash equivalents during the reporting period.  The statement shows cash and cash equivalents is generated and used by classifying cash flows as operating, investing and financing activities.  The amount of net cash flows arising from the operating activities is a key indicator of the extent to which operations are funded by way of taxation and grant income.  Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to future service delivery.  Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing). Further details can be found in note 28, with Cash and Cash Equivalents outlined in note 30.

Cash flow statement 2020/21

 

PCC

 

Group

 

2019/20

£’000

2020/21

£’000

 

2019/20

£’000

2020/21

£’000

-11,474

-5,994

Net Surplus or (Deficit) on the Provision of Services

-72,569

-71,234

9,900

22,668

Adjustments to net Surplus or Deficit on the Provision of Services for non-cash movements

70,996

87,908

-867

-7,256

Adjustments for items included in the net Surplus or Deficit on the Provision of Services that are investing and financing activities

-867

-7,256

-2,440

9,418

Net cash flows from Operating Activities

-2,440

9,418

 

 

 

 

 

714

573

Investing Activities

714

573

3,000

-6,000

Financing Activities

3,000

-6,000

1,274

3,992

Net increase or (decrease) in cash and cash equivalents

1,274

3,992

3,782

5,056

Cash and cash equivalents at the beginning of the reporting period

3,782

5,056

5,056

9,048

Cash and cash equivalents at the end of the reporting period

5,056

9,048

Notes to the statements of accounts 2020/21 

Note 1 - General Accounting Policies 

Where possible accounting policies have been shown alongside relevant notes to the accounts.  There are however a number of overarching accounting policies that apply more broadly which are set-out here: 

General principles 

The Statement of Accounts summarises the transactions for the 2020/21 financial year and its position at the year-end of 31 March 2021.  The PCC is required to prepare an annual Statement of Accounts by the Accounts and Audit Regulations 2015, which those regulations require to be prepared in accordance with proper accounting practices.  These practices primarily comprise of the Code of Practice on Local Authority Accounting in the United Kingdom 2020/21, published by the Chartered Institute of Public Finance and Accountancy, supported by International Financial Reporting Standards (IFRS) and statutory guidance issued under section 21(2) of the Local Government Act 2003. 

The accounting convention adopted in the Statement of Accounts is principally historical cost, modified by the revaluation of certain categories of non-current assets and financial instruments. 

Accruals 

Estimation techniques are the methods adopted by the Group / PCC to arrive at the estimated monetary amounts, corresponding to the measurement bases selected for assets, liabilities, gains, losses and changes in reserves.  The policies are therefore set to specify the basis on which an item will be measured: where there is uncertainty over how to measure this, the amount has been arrived at using an estimation or accrual technique.

Activity is accounted for in the year that it takes place, not simply when cash payments are made or received.  In particular: 

  • Revenue from the provision of goods or services is recognised in line with IFRS15.
  • Supplies and services (including services provided by employees) are recorded as expenditure when they are consumed or the services are received.
  • Interest receivable on investments and payable on borrowings is accounted for respectively as income and expenditure on the basis of the effective interest rate for the relevant financial instrument rather than the cash flows fixed or determined by the contract.
  • Where revenue and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet.  Where debts may not be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected.
  • The actual cost of employees and police officers is recorded in the accounts.  Accruals are made for the payment of police overtime, pension and tax liabilities based on the actual March payments and included as creditors on the Balance Sheet.

Investments 

Investments are shown in the balance sheet at cost. Where investments are fixed term deposits, the accrued interest owing at the balance sheet date of 31 March is added to the value of the investment. 

Revenue recognition 

The PCC accounts for revenue recognition in accordance with IFRS 15.  This applies to the accounting for revenue arising from the sale of goods and services. 

Any income received under contract is recognised in accordance with the performance obligations in the contract. 

Revenue is recognised and measured at fair value of the consideration received or receivable except for financial assets otherwise measured as financial instruments.  Revenue is recognised when performance obligations have been met.  Where there are doubts as to the collectability of an amount already included in revenue an impairment expense is recognised rather than an adjustment made to the revenue already recognised in the Comprehensive Income and Expenditure Statement. 

VAT 

VAT payable is included as an expense only to the extent that it is not recoverable from Her Majesty's Revenue and Customs. VAT receivable is excluded from income. 

Note 2 - Changes in accounting policies 

There are no changes in accounting policies which had a material impact for the 2020/21 statement of accounts. 

Note 3 - Accounting standards that have been issued but not yet adopted

The following sets out amendments to accounting standards or new accounting standards that have been issued but will not be adopted by the Code until 2021/22. 

  • Definition of a Business: Amendments to IFRS 3 Business Combinations
  • Interest Rate Benchmark Reform: Amendments to IFRS 9, IAS 39 and IFRS 7
  • Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. 

These amendments to International Financial Reporting Standards are not expected to have any material impact on the accounts.

Note 4 - Critical judgements in applying accounting policies 

In applying the accounting policies, the PCC has had to make certain judgements about complex transactions or those involving uncertainty about future events.  Critical judgements made in the Statement of Accounts for 2020/21 are: 

a) Allocation of transactions, benefits and liabilities between the Accounts of the Chief Constable and PCC 

A key critical judgement is the allocation of transactions and balances between the accounts of the PCC and those of the Chief Constable.  The adopted allocation of expense, income and balances is set-out in the following table:

Critical judgements in applying accounting policies

Group CI&E

Chief Constable’s CI&E

 

PCC's CI&E

Cost of Service

 

Cost of Service

-  Employee Cost of Officers & Staff under the direction & control of the Chief Constable

 

- OPCC Domestic Budget

- Commissioning Spend

- Support from Chief Constable Staff

- Policing Service Non-Pay Expenditure

 

- IAS19 Current Cost Pension Charges

- IAS19 Current Cost Pension Charges

- Accumulated Absences Accruals

 

- Capital Charges Depreciation & Impairment

- Pension Fund Top-Up Payment

 

- Specific Grants relating to the PCC

- Income from Fees and Charges

   

- Specific Grants relating policing services

 

 

Other Operating Expenditure

 

Other Operating Expenditure

   

- Surplus/Deficit on disposal of non-current assets

- Pension Top-Up Grant Income

Financing & Investment

 

Financing & Investment

- IAS19 Pension Net Interest

 

- IAS19 Pension Net Interest

- Capital Financing and Interest on Balances

 

Taxation and Non-Specific Grants

Taxation and Non-Specific Grants

 

Taxation and Non-Specific Grants

   

- Settlement Funding

 

 

- Accounting for Council tax

Intra Entity Transfer

 

Intra Entity Transfer

- Transfer of funding from the PCC

 

- Transfer of funding to the CC

 

Movement in Reserves Statement

Movement in Reserves Statement

 

Movement in Reserves Statement

 

 

- Revenue Contributions to Capital

 

 

- Minimum Revenue Provision

Group balance sheet

Group Balance Sheet

 

 

 

Chief Constable’s Balance Sheet

 

PCC's Balance Sheet

Net Assets

 

Net Assets

- Working Capital (CC Share)

 

- Non-Current Assets

- Provisions

 

- Working Capital (PCC Share)

- Accumulated Absences Liability

 

- Investments

- IAS19 Pensions Liability

 

- Cash & Cash Equivalents

 

 

- IAS19 Pensions Liability

 

 

- Provisions

 

 

- Long Term Borrowing

Reserves

 

Reserves

- Accumulated Absences Reserve

 

- Revaluation Reserve

- IAS19 Pensions Reserve

 

- IAS19 Pensions Reserve

 

 

- Capital Adjustments Reserve

 

 

- Useable Capital Receipts Reserve

 

 

- Specific Reserves

 

 

- Police Fund

The Scheme of Governance set-outs that strategic control; ultimately the overarching responsibility for setting the Police and Crime Plan, holding the Chief Constable accountable for the delivery of an efficient and effective police force and the responsibility for the appointment and dismissal of the Chief Constable, is exercised by the PCC.  As such the Accounts of the PCC contain not only the direct costs of his Office but also the cost of funding the activities of the Chief Constable and the capital accounting transactions and balances associated with his control over the strategic non-current assets such as Land and Buildings as well as all cash backed reserves. 

Stage 2 of the transfer of Staff and Assets required under the Police Reform and Social Responsibility Act 2011 was made on the 1 April 2014.  From that date, employment of staff under the direction and control of the Chief Constable transferred to him from the PCC. 

In accordance with the principles of IFRS 15 – Revenue Recognition and supported by: the Police Reform and Social Responsibility Act 2011 (Transitional Provision) Order 2013, confirming the legal status of the Chief Constable to apply Sections 21 and 22 of the Local Government Act 2003; and the LAAP bulletin 98A published by CIPFA in March 2014 established the view that the Chief Constable’s accounts should contain transactions and balances relating to officers and staff under his direction and control; The Chief Constable has daily direction and control over all police officers and a great majority of police staff and so his Accounts contain the direct cost of employment as well as associated IAS19 transactions and balances associated with his staff.

a) Collaborative Activities - The Chief Constable participates in a wide range of joint arrangements with other forces.  During 2020/21 these were primarily with Bedfordshire Police and Cambridgeshire Constabulary, to a lesser extent with Eastern Region forces and Kent.  Details of these arrangements as set out in notes 29 below.  The Chief Constable deems these arrangements to be joint operations in accordance with the Code of Practice Local Authority Accounting in the United Kingdom and consequently the Statement of Accounts and the accounting statements only reflect Hertfordshire’s share of the associated financial transactions and balances. 

b) IAS19 Estimation of Pension Liabilities – In response to the outcome of the McCloud and Sargeant cases and the subsequent proposed remedial solution Government, an estimate of additional pension liabilities has been reflected in the IAS19 calculation. IAS19 requires an entity to measure its defined benefit obligations on a basis that reflects: the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes beyond those terms) at the end of the reporting period. This approach of including an adjustment for McCloud and Sargeant has been applied to ensure that the accounts show a true and fair view of the pension liability as at 31 March 2021. Further details can be found in note 38.

c) In allocating balances between the PCC and Chief Constable accounts, the Home Office debtor for pension top-up grant due of £5.072m has been included in full in the PCC’s accounts. 

d) GMP equalisation and indexation. A past service cost was recognised in 2017/18 reflecting a previous extension of the interim solution regarding guaranteed minimum pension (“GMP”) indexation, which was announced by HMT in January 2018. Members of public service pension schemes with GMP entitlements who reach State Pension age on or after 6 December 2018 and before 6 April 2021 are covered by this previous extension of the interim solution.

 The High Court published its judgment in the Lloyds Banking Group case on the equalisation of GMP that pensions must be equalised for the effects of unequal GMP and the Government has committed to addressing GMP equalisation. Following discussions through the Finance Working Group covering most public service pension schemes, there was general consensus that a past service cost was required during 2019/20 in respect of the additional liabilities in respect of members reaching State Pension age after 6 April 2021, which were included in the 2019/20 accounts.

Note 5 - Assumptions made about the future and other major sources of estimation uncertainty 

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for the revenues and expenses during the year.  However, the nature of estimation means that actual outcomes could differ from those estimates. The key judgements and estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year areas follows:

Assumptions made about the future and other major sources of estimation uncertainty

Item

Uncertainties

Effect if Actual Results Differ from Assumptions

Pensions Liability

Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. Actuaries are engaged to provide the PCC with expert advice about the assumptions to be applied.

Note 38 sets out the sensitivity of the defined pension benefit obligation to significant actuarial assumptions including the impact of adjusting results for the McCloud and Sargeant pension challenges.

 

Property, Plant and Equipment

The PCC’s Land and Building non-current assets are valued on a five-year basis and so the potential exists for variations in value and changes in useful life. A full valuation was undertaken in 2019-20, with the previous full valuation having been carried out in 2014-15.

 

Assets are depreciated over useful lives that are dependent on assumptions about the level of repairs and maintenance that will be incurred in relation to individual assets. The current economic climate makes it uncertain that the PCC will be able to sustain its current level of spending on repairs and maintenance, bringing into doubt the estimated useful lives of the assets concerned.

 

A 5% variation in the value of the PCC’s Land and Building would result in an approximate £5.4m change to the value shown on the PCC’s balance sheet.

 

If useful lives are reduced the depreciation costs will increase and the carrying value of the assets will fall.

 

It is estimated that the annual depreciation charge for buildings would increase by £0.2m for every year that useful lives had to be reduced.

Events after the balance sheet date 

Accounting policy 

Events after the Balance Sheet date are those events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statement of Accounts is authorised for issue. Two types of events can be identified: 

  • Those that provide evidence of conditions that existed at the end of the reporting period.  The Statement of Accounts is adjusted to reflect such events.
  • Those that are indicative of conditions that arose after the reporting period – the Statement of Accounts is not adjusted to reflect such events, but where a category of events would have a material effect, disclosure is made in the notes of the nature of the events and their estimated financial effect. 

There are no such events for 2020/21. 

Events taking place after the date of authorisation for issue are not reflected in the Statement of Accounts. This is the date at which the CFO signs the audited statement of accounts which this year must be no later than 30 September 2021, extended due to the ongoing disruption resulting from the COVID-19 pandemic.

Note 7 - Expenditure and income analysed by nature 

Expenditure and income are analysed as follows:

Expenditure and income analysed by nature

 

PCC

2019/20

£’000

PCC

2020/21

£’000

Group

2019/20

£’000

Group

2020/21

£’000

Fees Charges and Other Service Income

-595

-438

-9,172

-8,748

Interest and Investment Income

-248

-118

-248

-118

Income from Council Tax

-84,688

-89,804

-84,688

-89,804

Government Grants and Contributions

-140,198

-144,873

-143,760

-151,728

Employee Benefit Expenses

1,955

2,080

216,770

230,975

Other Service Expenses

2,934

3,447

36,073

37,460

Depreciation, Amortisation and Impairment

10,718

6,388

10,718

6,388

Interest Payments

807

831

46,862

45,469

Gains and Losses on Disposal of Non-Current Assets

15

1,340

15

1,340

PCC funding To CC for financial resources consumed

220,774

227,141

-

-

(Surplus) or Deficit on

the Provision of Services

11,474

5,994

72,570

71,234

Note 8 - Group expenditure and funding analysis 

The PCC provides a segmental report in the notes to the financial statements together with supporting details and a reconciliation to the Comprehensive Income and Expenditure Statement. The segments mirror the PCC’s internal reporting arrangements for reporting at a service level on its budget requirements and monitoring against the approved budget. 

The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (government grants and council tax) by the Group in comparison with those resources consumed or earned by authorities in accordance with generally accepted accounting practices.  It also shows how this expenditure is allocated for decision making purposes across the Group’s reporting structure.  Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement.

Group expenditure and funding analysis – adjustment between accounting and funding basis

Group expenditure and funding analysis – adjustment between accounting and funding basis

2019/20

 

2020/21

Net Expenditure in the CIES*

 

£’000

Adjustments between the Accounting and Funding basis

£’000

Net Expenditure Chargeable to the General Fund

 

£’000

 

Net Expenditure in the CIES*

 

£’000

Adjustments between the Accounting and Funding basis

£’000

Net Expenditure Chargeable to the General Fund

 

£’000

130,517

-22,506

108,011

Local Policing

139,296

-22,898

116,398

31,175

-6,074

25,101

Protective Services

32,547

-5,867

26,680

29,819

-5,076

24,743

Operational Support

42,152

-7,177

34,975

46,712

-8,298

38,414

Organisational Support

36,657

-6,212

30,445

8,309

1,615

9,924

Corporate Budgets

4,878

1,905

6,783

1,843

-350

1,493

Office of the PCC

1,860

-217

1,643

800

220

1,020

PCC Commissioning

986

193

1,179

249,175

-40,469

208,706

Cost of Services

258,376

-40,273

218,103

-176,605

-28,825

-205,430

Other Operating Expenditure

-187,142

-32,571

-219,713

72,570

-69,294

3,276

(Surplus) or Deficit on

the Provision of Services

71,234

-72,844

-1,611

 

 

-24,790

Opening General Fund

 

 

-21,514

 

 

3,276

Less Surplus / Plus Deficit on the General Fund for the Year

 

 

-1,611

 

 

-21,514

Closing General Fund

 

 

23,125

* Comprehensive income and expenditure statement

The surplus on the Revenue Budget of £0.715m shown in the Narrative Report includes £0.896m of reserve use.  This is excluded from the Surplus on the Provision of Services 2020/21 of £1.611m shown above.

Group Note to the expenditure and funding analysis - adjustment between accounting and funding basis

Group Note to the expenditure and funding analysis - adjustment between accounting and funding basis

2019/20

 

2020/21

Adjustment for Capital Purposes

£’000

Net Change for The Pensions Adjustments

£’000

Other Differences

 

£’000

Total Adjustments

 

£’000

 

Adjustment for Capital Purposes

£’000

Net Change for The Pensions Adjustments

£’000

Other Differences

 

£’000

Total Adjustments

 

£’000

-5,724

-16,578

-204

-22,506

Local Policing

-4,212

-17,201

-1,485

-22,898

-1,560

-4,519

5

-6,074

Protective Services

-1,089

-4,444

-334

-5,867

-1,303

-3,777

4

-5,076

Operational Support

-1,332

-5,437

-408

-7,177

-2,131

-6,174

7

-8,298

Organisational Support

-1,153

-4,706

-353

-6,212

1,038

 -

577

1,615

Corporate Budgets

1,198

-

707

1,905

 -

-307

-43

-350

Office of the PCC

-

-188

-29

-217

 -

220

220

PCC Commissioning

-

-

193

193

-

-

-

0

Past Service Pension Cost

-

-

-

0

-9,680

-31,355

566

-40,469

Cost of Services

-6,588

-31,976

-1,709

-40,273

-890

-30,110

2,175

-28,825

Other Operating Expenditure

-7,205

-31,100

5,734

-32,571

-10,570

-61,465

2,741

-69,294

(Surplus) or Deficit on

the Provision of Services

-13,793

-63,076

4,025

-72,844

 

Continue to part two of the statement of accounts - Police and Crime Commissioner for Hertfordshire - 2020-2021

Our website uses cookies to improve your experience.

OK