Statement of Responsibilities for the Statement of Accounts THE COMMISSIONER’S RESPONSIBILITIES The Commissioner is required to: make arrangements for the proper administration of his financial affairs and to secure that one of his officers has the responsibility for the administration of those affairs, in line with statute this is the Section 151 manage his affairs to secure economic, efficient and effective use of resources and safeguard his assets; approve the Statement of THE CHIEF FINANCE AND COMMISSIONING OFFICER’S RESPONSIBILITIES The Chief Finance and Commissioning Officer is responsible for the preparation of the 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 (the Code). In preparing these Statements of Accounts, the Chief Finance and Commissioning Officer has: selected suitable accounting policies and then applied them made judgments and estimates that were reasonable and prudent; complied with the Local Authority Code The Chief Finance and Commissioning Officer has also: kept proper, up to date accounting records; taken reasonable steps for the prevention and detection of fraud and other irregularities; assessed the ability to continue as a going concern, disclosing, as applicable, matters related to going concern; used the going concern basis of accounting on the assumption that the functions will continue in operational existence for the foreseeable future; maintained such internal control which is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or APPROVAL OF STATEMENT OF ACCOUNTS The Statement of Accounts was approved by the Police and Crime Commissioner for South Yorkshire. Dr Alan Billings Police and Crime Commissioner for South Yorkshire 26 July 2018 Michael Clements CPFA Chief Finance and Commissioning Officer, Section 151 Officer 26 July 2018 0 33 | AND CITYTREASURER’S
Comprehensive Income and Expenditure Statement (continued) PCC 2016/17 2017/18 Gross Gross Net Gross Gross Net Expenditure Income Expenditure Expenditure Income Expenditure £’000 £’000 £’000 £’000 £’000 £’000 11,971 (24,536) (12,565) PCC 13,431 (27,105) (13,674) 11,971 (24,536) (12,565) Cost of Services 13,431 (27,105) (13,674) 299,563 - 299,563 Intra-group adjustment – funding provided by the PCC for financial resources consumed by the CC 311,812 - 311,812 311,534 (24,536) 286,998 Total Cost of Policing Services 325,243 (27,105) (298,138) 496 (506) (10) Other Operating Expenditure 713 (333) 380 1,932 (144) 94,653 Financing and investment income and expenditure 1.903 (175) 1,728 - (293,899) (293,899) Taxation and non-specific grant - (296,835) (296,835) 313,962 (319,085) (5,123) (Surplus) or deficit on Provision of Service 327,859 (324,448) 3,411 (1,760) (Surplus) or deficit on revaluation of Property, Plant and Equipment (2,483) 90 Remeasurements of the net defined benefit liability (228) (1,670) Other Comprehensive Income and Expenditure (2,711) (6,793) Total Comprehensive Income and Expenditure 700
Cash Flow Statement The Cash Flow Statement shows the changes in cash and cash equivalents of the PCC and Group during the reporting period. The Statement shows how cash and cash equivalents are generated and used by classifying cash flows as operating, investing or financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the PCC and Group are funded by way of taxation and grant income or from the recipients of services provided. 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 by the PCC). 31 March 2017 31 March 2018 Group PCC Group PCC £’000 £’000 £’000 £’000 49,703 (5,123) Net (surplus)/deficit on the provision of services 63,171 3,411 (49,985) 4,841 Adjustments to net (surplus)/deficit on the provision of services for non-cash movements (82,149) (22,389) (1,341) (1,341) Adjustments for items included in the net (surplus)/deficit on the provision of services that are investing and financing activities (1,533) (1,533) (51,326) 3,500 Adjusted net cash flows from Operating Activities (83,682) (23,922) 9,296 9,296 Investing Activities 5,542 5,542 (6,531) (6,531) Financing Activities 3,407 3,407 1,142 1,142 Net Increase or decrease in cash and cash equivalents (11,562) (11,562) (25,759) (25,759) Cash and cash equivalents at the beginning of the period (24,617) (24,617) (24,617) (24,617) Cash and cash equivalents at the end of the reporting period (36,179) (36,179)
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. 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. Note 4 Critical judgements in applying accounting policies In applying the accounting policies laid out in , the PCC and Chief Constable are required to make certain judgements about transactions or those involving uncertainty about future events. The critical judgement made in the Statement of Accounts is as follows: There is a high degree of uncertainty about the future levels of funding for the PCC and the impact of future legacy costs such as civil claims in relation to the Hillsborough Inquests / Claims and CSE, work being undertaken in conjunction with the National Crime Agency to investigate historic allegations of CSE (Operation Stovewood) and the events that took place at Note 4 Critical judgements in applying accounting
Note 10 Expenditure and Funding Analysis (continued) PCC 2016/17 2017/18 Net Expenditure Chargeable to the General Fund Adjustments between Funding and Accounting Basis Net Expenditure in the CIES Net Expenditure Chargeable to the General Fund Adjustments between Funding and Accounting Basis Net Expenditure in the CIES £’000 £’000 £’000 £’000 £’000 £’000 (14,084) 1,519 (12,565) PCC (15,277) 1,603 (13,674) (14,084) 1,519 (12,565) Net Cost of Service (15,277) 1,603 (13,674) 249,985 49,578 299,563 Intra-group adjustment – funding provided by the PCC for financial resources consumed by the CC 259,139 52,673 311,812 (241,964) (50,157) (292,121) Other Operating Expenditure (242,288) 52,439 (294,727) (6,063) 940 (5,123) (Surplus) or Deficit 1,574 1,837 3,411 40,327 Opening General Fund 46,390 6,063 Less/Plus Surplus or (Deficit) on General Fund in Year (1,574) 46,390 Closing General Fund at 31 March 44,816
Note 11 Subjective Analysis Expenditure for the Group and PCC, split by type rather than by district, service and department: 2016/17 2016/17 2017/18 2017/18 Group PCC Group PCC £’000 £’000 £’000 £’000 218,349 1,369 Employee Costs 236,500 1,372 7,263 (32) Premises Costs 7,252 37 3,904 15 Transport Costs 3,675 11 15,075 322 Supplies and Services Costs 17,062 553 23,675 5,098 Agency 28,787 6,091 5,229 5,199 Capital Charges & Impairment of Assets 5,445 5,367 (24,536) (24,536) Income (27,108) (27,105) 248,959 (12,565) Cost of Services 271,613 (13,674) - 299,563 Intra-Group Adjustment - 311,812 248,959 286,998 Net Cost of Policing Services 271,613 298,138 061 |
Note 12 Officers’ Remuneration (including Termination Benefits and Members’ Allowances) (continued) 2016/17 2017/18 Number £ Number 146 50,000 - 54,999 208 76 55,000 – 59,999 110 38 60,000 – 64,999 57 11 65,000 – 69,999 21 10 70,000 – 74,999 17 7 75,000 – 79,999 8 7 80,000 – 84,999 9 5 85,000 – 89,999 10 1 90,000 – 94,999 2 1 95,000 – 99,999 1 - 100,000 – 104,999 1 - 105,000 – 109,999 1 2 110,000 – 114,999 1 1 115,000 – 119,999 - 1 120,000 – 124,999 1 - 125,000 – 129,999 - - 130,000 – 134,999 - - 135,000 – 139,999 - - 140,000 – 144,999 1 1 145,000 – 149,999 - - 150,000 – 154,999 - 1 155,000 – 159,999 - - 160,000 – 164,999 - - 165,000 – 169,999 - - 170,000 – 174,999 1 308 449 Employees (both police officers and staff), of the PCC and the Chief Constable, including the senior employees identified in the previous table and termination packages, receiving more than £50,000 remuneration for the year (excluding employer’s pension contributions but including taxable expenses) were paid the following amounts: A number of employees work in shared services with other regional forces. Disclosure of such employees is made in the accounts of the force that holds the employment contract of those individuals. 065 | ANNUALACCOUNTS 2017/2018 NOTESTO THE
Note 35 Defined Benefit Pension Schemes (continued) Transactions relating to Post Employment Benefits The Group recognises the cost of post employment benefits in the reported cost of services when they are earned by employees rather than when the benefits are eventually paid as pensions. However, the charge required against council tax is based on the cash payable in the year, so the real cost of post employment / retirement benefits is reversed out of the General Fund via the Group Movement in Reserves Statement. The following transactions have been made in the PCC and Group Comprehensive Income and Expenditure Statement and the General Fund Balance via the PCC and Group Movement in Reserves Statement during the year: PCC only 2016/17 £’000 Pension Schemes PCC only (LGPS) 2017/18 £’000 Comprehensive Income and Expenditure Statement Cost of Services 216 Current service cost 267 - Past service cost - - Curtailments - Financing and Investment Income and Expenditure 74 Net interest expense 59 290 Total post employment benefit charged to the Surplus or Deficit on the Provision of Services 326 Other post employment benefit charged to the Comprehensive Income and Expenditure Statement Remeasurement of the net defined benefit liability comprising: 392 Return on plan assets (excluding the amount included in the net interest expense) (38) (51) Actuarial gains and losses arising on changes in demographic assumptions - 1,332 Actuarial gains and losses arising on changes in financial assumptions (190) (1,583) Experience gains and losses - 380 Total post employment benefit charged to the Comprehensive Income and Expenditure Account 98 Movement in Reserves Statement (290) Reversal of net charges to Surplus or Deficit for the Provision of Services for post employment benefits in accordance with the Code (326) Actual amount charged against the General Fund Balance for pensions in the year 135 Employer’s contribution payable 151 - Retirement benefits payable to pensioners - - Additional contribution to Police Pension Fund Account to balance deficit -
Note 35 Defined Benefit Pension Schemes (continued) Reconciliation of the Movements in Fair Value of the Plan Assets The expected return on scheme assets is determined by considering the expected returns available on the assets underlying the current investment policy. Expected yields on fixed interest investments are based on gross redemption yields as at the Balance Sheet date. Expected returns on equity investments reflect real rates of return experienced in the respective markets. PCC and Group 2016/17 Pension Schemes PCC and Group 2017/18 LPGS PCC LPGS Group LPGS PCC LPGS Group £’000 £’000 £’000 £’000 2,462 261,638 Opening fair value of scheme assets at 1 April 2,369 307,884 92 9,495 Interest income 61 8,041 (392) 32,722 Remeasurement (gains) and losses – return on plan assets 38 4,854 135 7,887 Contributions from employer 151 9,433 76 3,197 Contributions from employees into the scheme 68 3,528 - (6,858) Benefits paid (230) (10,191) (4) (197) Administration expenses (3) (215) 2,369 307,884 Closing fair value of scheme assets at 31 March 2,454 323,334
Glossary of Terms (continued) PAST SERVICE COST (PENSIONS) These costs represent the increase in liabilities arising from decisions taken in the current year to improve retirement benefits, but whose financial effect is derived from years of service earned in earlier years. PRECEPT An amount of money levied by one body (the precepting body) which is collected by another authority (the collecting authority) as part of the council tax. The PCC is the precepting body and the four South Yorkshire District Councils are the collecting authorities. PRIOR YEAR ADJUSTMENT A material adjustment applicable to prior years arising from changes in accounting policies or correction of fundamental errors. PROVISIONS Sums set aside to cover a liability that is likely to be incurred, but the amounts or date on which the cost will arise is uncertain. PRUDENTIAL CODE Local authorities are required to comply with the Prudential Code for Capital Finance in Local Authorities, published by CIPFA, in order to ensure that their capital investment plans are prudent, affordable and sustainable. PUBLIC WORKS LOAN BOARD A Government controlled agency that provides a source of borrowing for public authorities. RESERVES An amount set aside for a specific purpose in one financial year and carried forward to meet expenditure in future years. REVENUE EXPENDITURE Expenditure on day to day running costs incurred by the PCC in the provision of services. TREASURY MANGEMENT The management of the PCC’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of with those risks.