Director of Resources Narrative Report (continued) 6. WHO WORKS FOR SOUTH YORKSHIRE POLICE? South Yorkshire Police employs approximately 5,000 staff in full-time and part-time positions. The staffing information for the Force and OPCC as at 31 March 2018 is as follows: Full Time Equivalent (FTE) Number of employees Police Officers 2,465 2,508 Police Community Support Officers 221 232 Police Staff 1,956 2,204 OPCC 23 24 Total 4,665 4,968 In addition, the Force is supported by 161 Special Constables, 59 Police Cadets, 20 Police Cadet Leaders and 209 other volunteers. 7. PARTNERSHIP WORKING / COLLABORATION The OPCC and CC work with a number of partners such as the four councils, and also have a number of collaborations. The collaborations include working with the three Yorkshire and Humber PCCs and Chief Constables (West Yorkshire, North Yorkshire and Humberside), to deliver a number of services on a regional basis. In addition, separate collaboration exists between the PCC and CC and their counterparts in Humberside. The Forces have a combined Information Services Department and work collaboratively on Legal Services., with a shared Head of Service. The shared Joint Specialist Operations Unit was disbanded during the year and the HR collaboration is currently being reviewed in order to ensure it is achieving best value for both Forces. The PCC and CC also work collaboratively with South Yorkshire Fire & Rescue in relation to Vehicle Fleet Management and Estates and Facilities
Auditor’s Report (continued) Certification of completion of the audit We certify that we have completed the audit of the financial statements of the Chief Constable for South Yorkshire in accordance with the requirements of the Local Audit and Accountability Act 2014 and the Code of Audit Practice. Rashpal Khangura For and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 Sovereign Square Sovereign Street Leeds LS1 4DA 21st September 2018
Balance Sheet The Balance Sheet shows the assets, liabilities and reserves as at the year end. The net assets/(liabilities) (assets less liabilities) are matched by the reserves held. Reserves are reported in two categories. The first category of reserves is usable reserves, which may be used to fund services and are all held by the PCC. Unusable reserves cannot be used to provide services and are used to reflect the accounting arrangements for retirement and employee benefits. 31 March 2017 31 March 2018 £’000 £’000 - Long-Term Assets - - Long-Term Assets - - Current Assets - - Current Assets - (3,780) Current Liabilities (3,325) (3,780) Current Liabilities (3,325) (3,280,582) Other Long-Term Liabilities (3,287,024) (3,280,582) Long-Term Liabilities (3,287,024) (3,284,362) Net Assets/(Liabilities) (3,290,349) - Usable Reserves - (3,284,362) Unusable Reserves (3,290,349) (3,284,362) Total Reserves (3,290,349)
Note 3 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 is extremely volatile as it 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 for each of its pension schemes. Whilst the effects on the net pensions liability of changes in individual assumptions can be measured, the assumptions interact in complex ways. During 2017/18, the Actuaries advised that the net pensions liability has decreased by approximately £54m as a result of estimates being revised and updating financial and demographic assumptions. This is reported on the Group Income and Expenditure Statement and further information is provided in the pensions note. The Statement of Accounts contains estimated figures that are based on assumptions made about the future. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because figures cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The items in the Chief Constable’s Balance Sheet as at 31 March 2018 for which there is a significant risk of material adjustment in forthcoming years are as follows:
Note 9 Subjective Analysis Expenditure for the Force, split by type rather than by district, service and department: 2016/17 2017/18 £’000 £’000 216,980 Employee Costs 235,128 7,295 Premises Costs 7,215 3,889 Transport Costs 3,664 14,753 Supplies and Services Costs 16,509 18,577 Agency 22,696 30 Capital Charges & Impairment of Assets 78 - Income (3) 261,524 Cost of Services 284,723 (299,563) Intra-Group Adjustment (311,812) (38,039) Net Cost of Policing Services (26,525) 061 |
Note 18 Defined Benefit Pension Schemes (continued) Basis for Estimating Assets and Liabilities Liabilities have been assessed on an actuarial basis using the projected unit credit method, an estimate of the pensions that will be payable in future years, dependent on assumptions about mortality rates, employee turnover and salary levels etc. The liabilities of the Police Pension and Compensation Schemes have been assessed by the Government Actuary’s Department (GAD). The LGPS fund liabilities have been assessed by Mercer, using estimates based on the latest full valuation of the scheme as at 31 March 2016. 2016/17 2017/18 PPS LPGS PPS LPGS £’000 £’000 £’000 £’000 Mortality Assumption: Longevity at 65 for future pensioners (in years) 25.2 25.1 Men 24.5 25.2 27.3 28.0 Women 26.1 28.1 Longevity at 65 for current pensioners (in years) 23.2 22.9 Men 22.6 23.0 25.2 25.7 Women 24.2 25.8 Financial Assumptions 2.65% 2.60% Rate for discounting scheme liabilities 2.55% 2.70% 2.35% 2.20% Rate of inflation (CPI) 2.30% 2.10% 2.35% 2.20% Rate of increase in pensions 2.30% 2.20% 3.45% 2.20% Rate of CARE revaluation 3.55% 2.10% 4.35% 3.45% Rate of increase in salaries (long term ) 4.30% 3.35% 1.00% 1.00% Rate of increase in salaries (short term to 31/03/2020) 1.00% 1.25% 138 | ANNUALACCOUNTS 2017/2018 NOTESTO THE