Ensure that any debt is minimised
The PCC has set out an intention of avoiding any additional debt burden wherever possible.
Dorset Police is a relatively small force, with a comparable budget, but like all other forces must deliver the same operational requirements for estates, fleet, systems, and other items of capital expenditure.
The PCC is fully aware that the public expect all public sector organisations to spend public money wisely and manage finances in a responsible and prudent way.
The PCC has therefore adopted the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Capital Strategies and Programming Guidance which requires the PCC to approve a Capital Strategy before the start of each financial year. The Capital Strategy supports the Medium Term Financial Strategy (MTFS) and the Treasury Management Strategy.
The Capital Strategy provides a framework for the development of the Capital Programme which sets out the investment in assets and identifies the resources required for that investment.
These assets are considered essential to the provision of the policing service and meet the objectives set out in the Police & Crime Plan. The PCC has developed this Capital Strategy in consultation with the Force who are the primary users of the capital assets.
The Treasury Management Strategy, is revised annually and sets the framework for the management of cash flows, borrowing and investments, and the associated risks. It seeks to ensure that any borrowing is prudent, affordable and sustainable.
The Capital Financing Requirement is developed as part of the formalised annual business planning process, and scrutinised on an ongoing basis through the various boards and committees. Exceptions are raised directly with the PCC and Chief Constable.
There are annual costs relating to external debts, but these are substantially funded by government grants. These funds are replenished through an annual minimum revenue provision over the expected life of the assets. No additional external borrowing has been required or is forecast, save from some temporary borrowing to cover the lows in month-end cash cycles.