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Northumbria Police Authority has a statutory requirement to approve and monitor the annual police budget and set the police element of the council tax.
In doing this the Authority aims to provide the Chief Constable with the necessary resources for him to be able to deliver an effective and efficient policing service across Northumbria.
Most of the budget comes in the form of government grants – but the rest, about 12%, is raised locally. A small proportion of everyone’s Council Tax goes to help fund the police authority. This is called a precept and you’ll find it itemised on the Council Tax bill you receive from your local council.
Gateshead Council, as lead authority for Northumbria Police Authority, has provided support services covering a range of functions to the Authority and Chief Constable, since 1986. This is in accordance with sections 17 and 18 of the Police Act 1996. The services provided by the Council are carried out under Support Service Agreements.
The Authority has a Treasurer, who is supported in meeting his statutory responsibilities by a Finance team provided by Gateshead Council under the Support Services Agreement. Part of the Treasurer’s role is to provide policy and financial advice to members, and recommend a budget strategy to the Authority.
The decisions on the budget, precept and council tax levels have to be approved by nine of the seventeen members of the Police Authority, of whom at least five must be local authority appointees.
By law, the budget requirement, precept and council tax levels have to be finally determined by the end of February.
Members of the public were consulted about the budget priorities before it was set by way of surveys and seminars with local focus groups.
More information about the Police Authority’s Finances is available in the following publications.
Medium Term Financial Strategy (MTFS)
The MTFS is a key part of the Authority’s Integrated Corporate Planning Process which links operational planning with financial and resource planning, to ensure that all resources are directed toward policy priorities. The Strategy describes the financial direction of the Authority and outlines the financial pressures over a 3 year period. It is also an indication of the likely direction of financial planning over the next year.
The MTFS provides options for delivering a sustainable budget and capital programme over the medium term and sets out how the Authority can provide the Chief Constable with the resources to deliver the priorities in the local policing plan.
Budget Book
Following consideration of the MTFS, a financial strategy is agreed and specific proposals developed for consultation with all stakeholders and review in January before the Authority agrees its revenue budget and capital programme in February of each year. This is a plan that states the intentions of the Authority in financial terms for the next and subsequent financial years.
It provides a detailed summary of the income that the Authority expects to receive during the year both from central government, local tax payers and other sources, together with a breakdown of the estimated expenditure.
The budget book also includes a three year capital programme, setting out what the Authority plans to spend on major and minor buildings works, vehicles, plant and equipment and computers and communications.
Northumbria Police is also required to save 3% of its overall spending and reinvest these savings in frontline policing. Details of these are contained Local Policing Plan, which can be found under the Plans for the Future section of the website
Statement of Accounts
This is a statutory document produced annually, which provides information about the Police Authority’s financial performance and financial position. It provides the following information about the previous financial year:
- An explanatory foreword
- A financial review
- A statement of responsibilities for the statement of accounts
- A statement on internal control
- The Auditors report to the Police Authority
- A statement of accounting policies
- A consolidated revenue account
- A statement of capital expenditure
- A consolidated balance sheet
- A statement of total movements on reserves
- A cash flow statement
- A glossary of terms
All Local Authorities and Police Authorities are required to follow the same standard format when producing their statutory accounts. This should enable members of the public to compare and contrast the Authority’s financial performance over a number of years as well with other Local Authorities and Police Authorities.
Summary Accounts
In 2004/05, the Police Authority produced for the first time a leaflet summarising the income and expenditure of Northumbria Police for the financial year. We are constantly looking to review and improve this document, and would appreciate any comments you may have on it, including whether you found the information useful, and easy to read and understand. Please email any feedback you have to enquiries.npa@gateshead.gov.uk
Audit Comission Reports
The external auditor for Northumbria Police Authority is the Audit Commission. The Auditor has a responsibility to review and comment upon the financial activities of the Authority and to provide an opinion on whether the financial statements present a fair view of the financial position, and whether they have been prepared in accordance with the appropriate regulations and proper professional practices. They also have a responsibility to report on whether the Authority has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.
The Annual Audit Letter summarises the key issues arising from the work that the Audit Commission has carried out on the Authority during the year. Although it is addressed to the Authority it also communicates key issues to stakeholders including local people.
The Annual Governance Report summarises the findings from the annual audit, identifying key issues that those charged with the governance of the Authority should consider before the Audit Commission issue their opinion, conclusion and certificate.
The Use of Resources Report sets out the Audit Commission's conclusions on how well Northumbria Police Authority is managing and using its resources to deliver value for money and better and sustainable outcomes for local people and gives scored use of resources theme judgements. From 2008/09, the new use of resources assessment forms part of the Comprehensive Area Assessment (CAA) and comprises three themes that focus on:
- Sound and strategic financial management
- Strategic commissioning and good governance; and
- The management of natural resources, assets and people.
The reports summarise the results of the assessment and also highlight areas for improvement based on the criteria issued by the Commission.
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