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Home - 032/2014: 2015/16 Revenue and Capital Budget and Medium Term Financial Plans supported by Robustness of Estimates Report, Minimum Revenue Provision Strategy and Prudential Indicators and Investment Strategy – 27 February 2015

032/2014: 2015/16 Revenue and Capital Budget and Medium Term Financial Plans supported by Robustness of Estimates Report, Minimum Revenue Provision Strategy and Prudential Indicators and Investment Strategy – 27 February 2015

Executive Summary and recommendation:

There is a legal requirement for the PCC to set a budget prior to the 1st March each year which will then be used to deliver services in the following financial year, to support this decision the PCC’s Chief Finance Officer is required to report formally  on  the  robustness of the budget  for  consideration immediately  prior to setting  the  Budget.

Further to the above the Prudential Code requires the PCC to self regulate the affordability, prudence and sustainability of their capital expenditure and borrowing plans, by setting estimates and limits, and by publishing actuals, for a range of Prudential Indicators. It also requires them to ensure their Treasury Management Practices are in accordance with good practice. The Code also imposes on authorities clear governance procedures for setting and revising of Prudential Indicators, and describes the matters to which an authority will have regard when doing so. This is designed to deliver accountability in taking capital financing, borrowing and Treasury Management decisions. A fundamental provision of the Prudential Code is that over the medium term net borrowing will only be for a capital purposes.

When borrowing does take place regulations require that the PCC will have to set aside a ‘Minimum Revenue Provision’ (MRP) which is the annual revenue provision that authorities, which are not debt free, have to make in respect of their debts and credit liabilities. MRP aims to provide transparency as to the cost to the PCC of taking on new borrowing.

To deliver on these requirements the following 4 reports, which are also appended to this Decision Note, were presented and discussed at the Executive Board on the 24th February 2015:

  • Robustness of Estimates and Adequacy of Financial Reserves
  • Budget 2015/16 and Long Term Financial Plan 2016/17 to 2018/19 and Capital Plans 2014/15 to 2018/19
  • Treasury Management and Prudential Indicators 2015/18
  • Minimum Revenue Provision 2015/16

Further to the discussions that took place at that meeting the PCC is asked to approve the recommendations included in all of the attached reports and in doing so set the Revenue and Capital Budgets for 2015/16.

Police and Crime Commissioner decision: Approved

Signature: signature
Date: 27 February 2015
Title: Police and Crime Commissioner

Part 1 – Unrestricted facts and advice to the PCC

  1. Introduction and background

There is a legal requirement for the PCC to set a budget prior to the 1st March each year which will then be used to deliver services in the following financial year, to support this decision the PCC’s Chief Finance Officer is required to report formally  on  the  robustness of the budget  for  consideration immediately  prior to setting  the  Budget.

Further to the above the Prudential Code requires the PCC to self regulate the affordability, prudence and sustainability of their capital expenditure and borrowing plans, by setting estimates and limits, and by publishing actuals, for a range of Prudential Indicators. It also requires them to ensure their Treasury Management Practices are in accordance with good practice. The Code also imposes on authorities clear governance procedures for setting and revising of Prudential Indicators, and describes the matters to which an authority will have regard when doing so. This is designed to deliver accountability in taking capital financing, borrowing and Treasury Management decisions. A fundamental provision of the Prudential Code is that over the medium term net borrowing will only be for a capital purposes.

When borrowing does take place regulations require that the PCC will have to set aside a ‘Minimum Revenue Provision’ (MRP) which is the annual revenue provision that authorities, which are not debt free, have to make in respect of their debts and credit liabilities. MRP aims to provide transparency as to the cost to the PCC of taking on new borrowing.

To deliver on these requirements the following 4 reports, which are also appended to this Decision Note, were presented and discussed at the Executive Board on the 24th February 2015:

  • Robustness of Estimates and Adequacy of Financial Reserves (Appendix A)
  • Budget 2015/16 and Long Term Financial Plan 2016/17 to 2018/19 and Capital Plans 2014/15 to 2018/19 (Appendix B)
  • Treasury Management and Prudential Indicators 2015/18 (Appendix C1 and C2)
  • Minimum Revenue Provision 2015/16 (Appendix D)

Further to the discussions that took place at that meeting the PCC is asked to approve the recommendations included in all of the attached reports and in doing so set the Revenue and Capital Budgets for 2015/16.

  1. Matters for consideration

The matters for consideration are included in the appended reports.

  1. Other options considered, if any

The matters for consideration are included in the appended reports.

  1. Contribution to Police and Crime Plan outcomes

The Financial and Capital Plans for 2015/16 underpin the Police and Crime Plan priorities and provide the financial framework within which the Plan can be delivered.

  1. Consultations carried out

The PCC consulted on the level of precept to be proposed for 2015/16 which has been reported on elsewhere. The precept has a significant impact on the funding available to the PCC as it makes up over 40% of the funding available to the PCC.

  1. Financial Implications/Value for money

The Financial implications of the reports are covering in detail in each of the separate report as appropriate.

  1. Legal Implications

There is a legal requirement on the PCC to set a budget prior to the 1st March each year which will then be used in the following financial year. Failure to do so would result in an illegal budget and significant reputational damage. Approving this Decision and the appended papers will ensure that the PCC obligations in this area are met for 2015/16.

Having read this report and having considered such information as has been provided at the time of being asked to express this view, the Acting Force Solicitor and Head of Legal Services is satisfied that this report does not ask the PCC for North Yorkshire to make a decision which would (or would be likely to) give rise to a contravention of the law.

  1. Equality Implications

None applicable

  1. Human Resources Implications

None applicable

Public Access to information

The Police and Crime Commissioner wishes to be as open and transparent as possible about the decisions he/she takes or are taken in his/her name. All decisions taken by the Commissioner will be subject to the Freedom of Information Act 2000 (FOIA).

As a general principle, the Commissioner expects to be able to publish all decisions taken and all matters taken into account and all advice received when reaching the decision. Part 1 of this Notice will detail all information which the Commissioner will disclose into the public domain. The decision and information in Part 1 will be made available on the NYPCC web site within 2 working days of approval.

Only where material is properly classified as restricted under the GPMS or if that material falls within the description at 2(2) of The Elected Local Policing Bodies (Specified Information) Order 2011 will the Commissioner not disclose decisions and/or information provided to enable that decision to be made. In these instances, Part 2 of the Form will be used to detail those matters considered to be restricted.  Information in Part 2 will not be published.

Part two

Is there a Part 2 to this Notice – NO

Originating Officer Declaration

Author name:       Michael Porter

Collar number:     4317

  Name      (Collar Number) Date of completion (√)
Head of Departmenthas reviewed the request and is satisfied that it is correct and consistent with the NYPCC’s plans and priorities. Michael Porter 004317 24/02/15
Legal AdviceLegal advice has been sought on this proposal and is considered not to expose the PCC to risk of legal challenge or such risk is outlined in Part 1 or Part 2 of this Notice. Jane Wintermeyer003840 26/02.15
Financial AdviceThe PCC CFO has been consulted on this proposal, for which budgetary provision already exists or is to be made in accordance with Part 1 or Part 2 of this Notice. Michael Porter 004317 24/2/15
Equalities AdviceEither there is considered to be minimal impact or the impact is outlined in Part1 or Part2 of this Notice.  Author to complete as Equalities matters are mainstreamed within departments. Michael Porter 004317 04/02/15
HR AdviceHR advice has been sought in relation to any people related matters  To be completed by HR

 

I confirm that all the above advice has been sought and received and I am satisfied that this is an appropriate request to be submitted for a decisionSignature: Michael Porter, PCC Chief Finance OfficerDate: 24/02/2015

Appendices

Appendix A

Robustness of Estimates and Adequacy of Financial Reserves
Appendix A – Robustness of Estimates and Adequacy of Financial Reserves

Appendix B

Budget 2015/16 and Long Term Financial Plan 2016/17 to 2018/19 and Capital Plans 2014/15 to 2018/19
Appendix B – Budget 2015-16 and Long Term Financial Plan 2016-17 to 2018-19 and Capital Plans 2014-15 to 2018-19

Appendix C1 and C2

Treasury Management
Appendix C1 – Treasury Management and Prudential Indicators 2015-18

Prudential Indicators 2015/18
Appendix C2 – NORTH YORKSHIRE POLICE PRUDENTIAL INDICATORS

Appendix D

Minimum Revenue Provision 2015/16
Appenxix D – Minimum Revenue Provision 2015-16

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