Forecast General Reserve for 31st March 2019 is £8.5m, which is 3% of net revenue expenditure. It is planned to maintain this level of General Reserve over the medium term.
Police Finance Reserves Strategy
Notes relating to the Account:
Movement in Reserves Statement
24 Purpose of earmarked reserves
The following notes explain the purposes of the earmarked reserves on which there was a balance at the end of 2016/17
- The Athena reserve was created in 2013/14. It held funds set aside for the implementation of the Athena system. Athena has now been implemented ad the reserves has a nil balance at the end of 2016/17. See the related pay party note 30 for more details of the Athena system.
- The estates reserve was created in 2013/14 to fund improvements to the Essex Police Estate
- The Carry Forward Reserve represents amounts carried forward from the financial year just ended to the new financial year to meet specific financial commitments.
The commitments to be funded from this reserve in 2016/17 are as follows:-
PCC Grants £464,587
Operational Activities £610,771
- The Forfeiture Monies Reserve holds funds transferred to the PCC from the Misuse of Drugs Act Seizures Fund. These funds are subsequently transferred from the reserve into the Comprehensive Income & Expenditure Statement in order to fund the costs of operations mounted to tackle drug related crime and drug abuse.
- The Transformation Reserve (formerly referred to as Investment in Estates and IT Strategies) was created in 2015/16 and will help to fund the one off costs of implementing the Estates and IT Strategies.
- The Leased Property Dilapidations Reserve Original funds the cost of future major repairs to a multi occupancy building. The PCC is responsible for the maintenance of this building, and it is intended to restore the building back to its original condition at the end of the lease.
- The Leased Property Dilapidation & Maintenance Reserve funds the cost of minor repairs to the multi occupancy building. The funds transferred into the Reserve represent service charges collected from the tenants in respect of outstanding balances. Charges ceased at the end of 2014 after agreement was reached with all respective forces that they would contribute on an agreed percentage basis any costs due at the end of the lease. The balance on this reserve will be held until the end of the lease.
- The Pay Equalisation Reserve was created in 2014/15 to help fund in-year shortfalls on pay due to the cost of turnover activity.
- The Proceeds of Crime Act (POCA) Reserve holds receipts received through the Asset Recovery Incentive Scheme, to fund crime reduction related expenditure.
- The Redundancy and Relocation Reserve was created in 2014/15 to help fund the cost of the savings programme.
- The Major Operational Reserve was created in 2016/17 to fund in-year shortfalls on major incidents that are not be reimbursed by the Home Office. Generally additional expenditure above 1% of the Force’s annual budget is reimbursed by the Home Office.
- The Recruitment Uplift Contingency Reserve was created in 2016/17 to help fund additional one-off costs in recruitment activity to increase the strength of Police Officers to 2850ftes.
- The Legal Claims Contingency Reserve was created in 2016/17 to fund one-off costs of future legal claims.
- The Seven Forces Collaboration Reserve was created in 2016/17 to fund collaborative set-up costs required for implementing future savings plan.
- The Future Capital Funding Reserve funds future capital programme.
25 Transfer to/from earmarked reserves
This note sets out the amounts set aside from the General Reserve in earmarked reserves to provide financing for future expenditure plans and the amounts posted back from the earmarked reserves to meet Revenue Expenditure in 2016/17.
See note 24 for details of the purpose of earmarked reserves.