Further detail

A number of financial risks were highlighted as part of the budget approval process, some of which have materialised in the first half of the financial year causing significant pressure on the 2023-24 revenue position.

Due to significant financial challenges the Police Authority faced this year, mitigating actions were agreed by Police Scotland Force Executive to bring the revenue and reform budgets collectively back in line with the funded position. These specific actions are monitored on a weekly/fortnightly basis, with regular monthly reporting to the Police Scotland Executive and SPA Resources Committee members, to provide assurance to the Authority of oversight of progress against delivery of the above plans.

The Head of Finance provides the routine finance report which outlines the year to date and forecast position for the revenue, capital, and reform budgets.

Appendix A provides the detailed period 10 (P10) finance report.

Revenue
• Mitigating actions are being delivered through our Policing Our Communities programme to bring forecast spend back into line with the funded position.

• Significant progress continues to be made; however, several risks were identified in terms of delivery of the overall budget. The position at the end of quarter three (Q3) forecast was an anticipated overspend of £5.0m.

• The Chief Executive (CE) of the Scottish Police Authority (SPA) requested additional contingency funding from Scottish Government (SG) to ensure a balanced position could be achieved should further savings or efficiencies not materialise.

• Year to date costs are £1.7m lower than Q3 forecast, mainly within non-pay and police staff costs, some of which are genuine underspends and some of which are designated as timing.

• Any real underspends banked between now and P12 will reduce the need for the £5.0m contingency funding, assuming there are no unplanned events that will result in a significant cost pressure for Policing.

• The year-to-date actual position versus budget is an overspend of £7.0m.

Capital
• As previously reported, the capital forecast at Q3 is £54.9m, £1.9m (fully funded) over the budget position of £53.0m. Circa 91% of this funding has been spent to date.

• Capital expenditure has required to be slowed for the latter part of the financial year, with a further £1.1m slippage to be identified to deliver the Q3 forecast.

• As a result, no further commitments to be made in the current financial year and any slippage that is identified must be notified to Finance and should not reallocated to other areas of spend.

• The year-to-date actual position versus forecast is an underspend of £0.2m and versus budget is an overspend of £2.9m.

• Capital expenditure that is not yet committed should continue to be progressed, but only for delivery after 1 April 2024.

Reform
• As previously reported, the Q3 forecast of £20.3m is in line with revised funding.

• The revised Q3 forecast continues to highlight that reform funding has reduced by £5.0m. This is due to the decisions and mitigating actions agreed to help balance the 2023/24 revenue position.

• The year-to-date actual position versus forecast is an underspend of £0.4m and versus budget is an underspend of £2.8m.