OFFICIAL. Date 14 August 2016 SPA HQ, 1 Pacific Quay, Glasgow

Transcription

1 OFFICIAL Meeting SPA Finance Committee Date 14 August 2016 Location SPA HQ, 1 Pacific Quay, Glasgow Title of Paper Capital Investment Group Summary Item Number 5.2 Presented By James Gray Recommendation to Members Approval Appendix Attached Yes Appendix A Capital Investment Group Presentation Appendix B Capital & Reform Phasing 2018/19 PURPOSE The purpose of this paper is to provide Members with a summary of the decisions taken by the Capital Investment Group (CIG) and approved by the Corporate Finance & Investment Group (CFIB) in relation to the prioritisation of capital and reform funding. Members are asked to note the content of this paper, and in particular the planned areas of over and underspend highlighted. SPA Finance Committee Corporate Investment Group Summary 14 August 2018 OFFICIAL

2 OFFICIAL 1. BACKGROUND 1.1 The CIG was established in January 2018 as a sub-committee of CFIB, with responsibility for recommending to CFIB on investment strategy and prioritisation of capital and reform funding. 1.2 The CIG met on 27 July 2018 with the following objectives: Review Q1 performance Note key risks associated with the capital and reform plans in 2018/19 Reallocate funding where underspends have been identified Note the capital outlook for future years 2. FURTHER DETAIL ON THE REPORT TOPIC 2.1 Documentation was produced in order to support discussion and decision making at the CIG. This is attached as appendix A. The Capital & Reform 2018/19 phasing previously presented to the SPA Finance Committee is included for reference in Appendix B. 2.2 A summary of the key discussion points were as follows: Capital: Year to date performance shows a 2.1m actual spend versus a 3.9m budget. The majority of this slippage relates to Estates and Fleet, however this is a timing issue and both are forecast to come in on budget by year end. Reform: Summary of Q1 performance indicates a 1.5m underspend for the full year forecast. This is predominantly due to delays in filling vacant transformation posts. A summary of key statistics for 2018/19 and 2019/20 transformation resource was provided. This highlighted risks of underspend in 2018/19 and provided an overview of the business areas which were carrying transformation vacancies. It also highlighted the forecast impact of transformation resource salary costs on both reform and core revenue budgets in 2019/20. A summary of projects from which funding (reform and capital) could potentially be reallocated was presented and discussed. The final recommendations on funding reallocation are noted below in Section 3.2 Discussion took place in relation to the implications of approving business cases now on the funding requirements for future years SPA Finance Committee Corporate Investment Group Summary 14 August 2018 OFFICIAL

3 OFFICIAL (as outlined on page 13) and how an increase in capital funding will be required if all of the projects within the transformation portfolio are to be funded. Key activities to take place before the Q2 and Q3 CIG meetings were noted, which will include the production of a prioritisation matrix to include categorisation and scoring. This will support more informed capital investment prioritisation. 2.3 The table below shows how Capital funding was proposed to be reallocated by the CIG. Funding Removed Speed Awareness Deprioritised Corporate Services Transformation Capital not required in 2018/19 per IBC Procure to Pay only 100k of 400k budget required per latest iteration of BJC Funding Allocated Data Storage (information sensitive) CCTV (information sensitive) Mobile Devices additional funding for faster roll out of mobile devices Public Order Vehicles Replacement of 6 (based on budget available) of 15 public order vehicles. SPA Finance Committee Corporate Investment Group Summary 14 August 2018 OFFICIAL

4 OFFICIAL 2.4 The table below shows how Reform funding was proposed to be reallocated by the CIG. Funding Removed None there is currently a full year forecast underspend of 1.5m which was considered for reallocation Funding Allocated Mobile Devices in line with the FBC, additional reform funding (above that previously notionally allocated pre-business case development) is required in 2018/19 in order to progress with the capital spend associated with the mobile devices project. This includes development, licensing, devices registration, installation and first year contract costs. GDPR Compliance P&D funding for temporary staff to support P&D in achieving compliance with GDPR. Funding Removed None there is currently a full year forecast underspend of 1.5m which was considered for reallocation 2.5 The recommendations for reallocation of capital and reform funding from the CIG as outlined above were presented to CFIB on 9 August. These recommendations were approved. 3. FINANCIAL IMPLICATIONS 3.1 The Financial implications are as per section 2 above. 4. PERSONNEL IMPLICATIONS 4.1 There no personnel implications associated with this paper. 5. LEGAL IMPLICATIONS SPA Finance Committee Corporate Investment Group Summary 14 August 2018 OFFICIAL

5 OFFICIAL 5.1 There are no further legal implications in this paper. 6. REPUTATIONAL IMPLICATIONS 6.1 There are no reputational implications associated with this paper. 7. SOCIAL IMPLICATIONS 7.1 There are no social implications associated with this paper. 8. COMMUNITY IMPACT 8.1 There are no community implications associated with this paper. 9. EQUALITIES IMPLICATIONS 9.1 There are no equality implications associated with this paper. 10. ENVIRONMENT IMPLICATIONS 10.1 There are no environmental implications associated with this paper. RECOMMENDATIONS Members are requested to note the summary of the Capital Investment Group in relation to the re-prioritisation of Capital and Reform funding for 2018/19. SPA Finance Committee Corporate Investment Group Summary 14 August 2018 OFFICIAL

6 Protect Management Capital Investment Group Q1 2018/19 27 July 2018

7 Protect Management Contents Purpose Summary of Q1 Performance Reallocation Future Outlook Next Steps 2

8 Protect Management Purpose Review Q1 performance Note key risks associated with the capital and reform plans in 2018/19 Reallocate funding where underspends have been identified Note the capital outlook for future years 3

9 Protect Management Summary of Q1 Performance - Capital Year to Date Full Year Forecast Budget Actual Variance Budget Forecast Variance m m m m m m Business As Usual Estates Fleet ICT Specialist Policing Equipment Weaponry Change Corporate Services Transformation P2P - Procure to Pay Telematics Estates Transformation Custody Remodelling Productions Remodelling CJ Records Management Speed Awareness Mobility Core Operating Systems Cybercrime Capability Payroll Transformation ICT - National Network ICT - ADEL ICT - Digital ICCS Automatic Number Plate Recognition Other Bids (no allocation awarded) Total Police Scotland Scottish Police Authority Forensics Scottish Police Authority Slippage Management Total Key YTD movements to note: Estates ( 0.8m underspent YTD) Fleet ( 0.4m underspent YTD) Key forecast movements to note: Custody ( 0.4m Allocated additional) Productions ( 0.1m Funding removed) Cybercrime Capability ( 0.1m slippage from 17/18) Payroll ( 0.1m Forecast overspend) Nat Net ( 0.1m Funding removed) Funding Source: Grant Aid Receipts Reform Funding Total Funding

10 Protect Management Summary of Q1 Performance - Reform Revenue Reform Year to Date Full Year Forecast Budget Actual Variance Budget Forecast Variance m m m m m m Transformation Resource Professional Services Digital & Efficiency Transformation Corp Services Transformation Operation Policing Transformation VR VER Total Committed & Planned Expenditure Slippage Management Total Committed & Planned Expenditure Key movements to note: Transformation Resource ( 1.9m Forecast underspend see slide 6) Professional Services (On track, but significant movements within projects see slide 7) 5

11 Protect Management Spotlight Transformation Resource 2018/19 Of the 25m Reform budget for 2018/19, 12.7m is allocated to transformation resources, which is split across projects, BAU stabilisation and change support. Due to delays in post approval, recruitment and onboarding, the transformation resource budget is expecting to be underspent. 2018/19 Budget vs Forecast Vacant Post Breakdown 10.8m Forecast 12.7m Budget 1.9m underspend Cyber: 14 Data Gov: 14 DPP: 11 Other: 38 Commercial Excellence: 15 Holmes: 28 Vacant Posts: On Track 177 Delayed CSST: 16 Change Management (general): 23 DEPP: 18 Notes: Vacant posts with no confirmed start date have an assumed November start Additional requests assumed November start No allowance made for contract extensions (unless extension has already begun) New starts assumed at the top/mid of the grade No allowance for additional unapproved posts or agency Notes: 241 Vacant posts On Track vacant posts are those not yet expected to be filled, eg CJ PCSO s, Disposal Team Delayed vacant posts were expected to be filled at the start of the financial year (approved) or the start of September 18 (requested posts) 6

12 Protect Management Spotlight Transformation Resource 2019/20 Outlook Looking forward to 2019/20 there is a continuing demand for transformation resource, as well as a growing number of permanent posts which is leading to a revenue pressure. As the budget for 2019/20 is yet to be confirmed the below provides a forecast of the required spend and the potential funding streams (reform or revenue). 2019/20 Budget vs Forecast 2019/20 Revenue Pressure Breakdown 17.4m Potential Resource 8.7m Transformation Resource Other: 0.4m Custody Remodeling: 4.4m Revenue Budget Pressure 2018/19: 8.7m Finance Transformation: 1.6m 8.7m Revenue Pressure Procurement: 0.4m Change Management: 0.9m Holmes: 1m Notes: 1% Pay award for assumed Assumed all new Permanent posts to transfer to BAU Includes 80 CJ PCSO s as part of Revenue Pressure (phase 2) No allowance made for contract extensions All vacancies filled by November 2018 assumed No expected agency staff in Lack of control over changes to agreed posts Notes: Finance revenue pressure to be offset by savings in finance restructuring. 7

13 Spotlight - Professional Services Protect Management This slide details the professional services reform budget split by project allocation. The CIG are asked to note the Changes in full year forecast across the list of projects in line with decisions taken by Change Board. Revenue Reform - Professional Services Year to Date Full Year Forecast Budget Actual Variance Budget Forecast Variance m m m m m m New Corporate Service Model Commercial Excellence P2P Estates Transformation Staff Pay and Reward Modernisation P&D Initiativ es Contact Assessment Model CJSD - General Cyber Capability Programme - General British Transport Police - General Professional Services Innov ation Demand Productiv ity Performance Finance Transformation Support Ict Strategy Transformation Support Services TOTAL LEDGER TRANSFORMATION

14 Protect Management Capital & Reform Risks, Impact & Potential Reallocation This slide highlights potential over and underspends not adjusted/included in the Q1 forecast. Consideration should be given by the CIG to approving the reallocation of underspends to the pressures listed below. Capital RAG Project Categorisation Value ( ) Underspend/Pressure Details P2P Change 0.40 Underspend Proposed to be absorbed into CSST Corporate Services Transformation Change 0.50 Underspend IBC had no capital spend in 2018/19 Speed Awareness Change 0.50 Underspend Deprioritised Potential Underspend 1.40 Q1 Forecast Overspend Total for Reallocation 1.00 Reform RAG Project Categorisation Value ( ) Underspend/Pressure Details P&D - GDPR Compliance TRCG Pressure 24 temp staff P2P Professional Services 0.56 Underspend Proposed to be absorbed into CSST Mobility Digital & Efficiency Pressure Mobiles revenue cost impact Potential Overspend Q1 Forecast Underspend 1.50 Total for Reallocation 0.56 Other investments for noting: - Innovation progress update - VR VER potential for increased allocation 9

15 Reallocation & Prioritisation Protect Management The table below lists the key budget categories/projects which did not receive the full requested allocation as part of the 2018/19 capital budget setting exercise. The requests below are the 2018/19 budget requests shown net of the allocation received. DECISIONS REQUIRED: How should 1m of Capital be reallocated? How should 0.56m of Reform be reallocated? CAPITAL BUDGET REALLOCATION Categorisation Project/Budget Original Request Allocated Amount Net Remaining m m m Change T Change Mobility* BAU Fleet BAU ICT BAU Estates BAU Weaponry BAU Specialist Policing Equipment * For each additional device ( 950) purchased from the capital budget an additional 105 of revenue will be incurred (this is proposed to be funded from reform 2018/19). Therefore if 1m is allocated to Mobility an additional 111k will be required from the reform budget. 10

16 Protect Management Opportunities/Threats Investment RAG Issue Impact Details St. Kat s Centre Aberdeen project manager NHS unable to confirm commitment at this point. Requirement for a Project Manager in the North, Chief Supt Thomson to confirm. Underspend Overspend Brexit Undetermined costs Overspend TBD BTP Undetermined costs Overspend TBD 500k of reform revenue budget allocated 50k resource pressure, could be funded from Resource underspend VR/VER Plans not in place to identify releases Underspend 2.1m of reform revenue allocated Vacant Posts Body Armour Telematics 241 vacant posts, 64 posts on track to start as expected; 177 posts due to be filled, start dates pushed back Potential 9-12 month procurement process to be confirmed Delay of installation due to discussions with the Federation Underspend Underspend Underspend Contributing to the 1.9m forecast resource underspend 650k of capital allocated Capital spend slippage, reduction of forecast savings ESMCP Latest purchase expected in 2020/21 Overspend Capital costs of 70m no budget Cyber Depot Oracle - Linlithgow pilot Overspend TBD Innovation Lean middle office Overspend Potential for reallocation Forensics How are Forensics requests being considered? Under/Oversp end HMCIC recommendation TBD TS21C Recently approved as a programme Overspend Potential for reallocation Custody Early recruitment of CJ PCSO s, resulting in earlier benefits realisation Overspend Unbudgeted 18/19 reform spend, could be funded from Resource underspend 11

17 Protect Management Prioritisation Capital Planning Update In recent months, business case activity has gathered pace due to the maturing nature of the Portfolio. As a result, the Change Board, and subsequently the SPA are approving business case which have substantial implications on the allocation of the capital budget this year and in future years. It is therefore important to take stock of the current outlook for capital in 2019/20 and 2020/21. The table overleaf shows that those business cases which have approvals in place are already putting a strain on the capital budget for next year (with the assumption that we would have the same budget as this year) 12

18 Prioritisation Capital Outlook Protect Management 2018/ / /2021 Approved Plan Revised Plan Indicative Indicative m m m m Capital (Annual Rolling Programmes) Estates Fleet ICT Specialist Policing Equipment Weaponry Total Rolling Programmes Change Programme / Project Corporate Services Transformation New Corporate Service Model Payroll Transformation Commercial Services Programme Telematics Procure To Pay (P2P) Custody / Criminal Justice Model Criminal Justice Remodelling Productions Remodelling Speed Awareness Criminal Justice Records Management Digital Enabled Policing Core Operating Systems Mobility Cyber Capability Programme Cyber Capability Programme General National Cybercrime Infrastructure Borders Policing Solution This table has been prepared to show the capital outlook for 19/20 and 20/21. Requirements - 36m for BAU, 29m for Change (based on approved business cases, not taking account of any business cases currently in production). Funding Outlook 19/20 Worst Case Funding Source m Detail Core Grant 20 in line with 17/18 allocation Reform 5 in line with 18/19 allocation Disposals 4 assets with high likelihood of disposal DDICT 0 no funding granted Total 29 Middle Case Funding Source m Detail Core Grant 23 in line with 18/19 allocation Reform 5 in line with 18/19 allocation Disposals 6 mid point of 19/20 forecast DDICT 8 balancing figure Total 42 Local Approaches to Policing Technical Survelliance 21st Century Other Projects ICT National Network ICT Digital ICCS ICT ADEL Automatic Number Plate Recognition Total Change Programmes Scottish Police Authority Forensics Total SPA TOTAL INDICATIVE PLAN Best Case Funding Source m Detail Core Grant 23 in line with 17/18 allocation Reform 0 assume capital replaced by DDICT Disposals 8 all assets on 19/20 list disposed DDICT 50funding received in line with request Total 81 13

19 Protect Management Next Steps Q2 meeting scheduled for 30 th October 2018 Production of a Capital Prioritisation Matrix for Q3 Development of a 3 year capital plan 14

20 Protect Management Capital Prioritisation Matrix - Categorisation Projects and initiatives across all 6 budget categories will be further categorised as one of the four investment types detailed below. Breakdown of Capital Budget Core Requirements Choice-based funding Illustrative Budget Compliance / Mandatory Asset Replacement In-Flight Projects Discretionary Spend Total Police Scotland Capital Budget Description Investments that must be made due to regulatory or legislative imperatives Minimum amount of capital required to keep the lights on Residual, ongoing capital spend for approved investments Incremental capital to be deployed for new projects The aggregated value of these four capital budget types Examples Expired officer kit Essential building repair Desktop refresh Fleet beyond mileage/usage limits Multi-year investments (e.g. ADEL) and other approved Change business cases Any other project or initiative across the 6 Police Scotland capital budget categories Most required capital commitments fall into these three categories 15

21 Protect Management Capital Prioritisation Matrix - Criteria Projects and initiatives across all 6 budget categories will be collated and scored against criteria to assess strategic fit and deliverability. Strategic Fit Deliverability Criteria Assessment Criteria Assessment Strategic Priority Does this investment fit with the objectives of the Policing 2026 strategy? Deliverability Is this investment procurable, receivable and implementable in the financial year in question? Operational Risk Does this investment address a significant organisational or operational risk? Operational Benefit Does this investment provide officers and/or the public with a significant operational improvement/better service? 18/19 benefit Does the investment have the ability to generate efficiency benefits, cost savings or force improvements WITHIN the current financial year? Longer term benefit Does the investment have the ability to generate efficiency benefits, cost savings or force improvements into the future? Critical Enabler Does this investment enable other strategic projects/investments to deliver on their objectives? 16

22 Protect Management Capital Prioritisation Matrix Decision Making Once scored, initiatives will be ranked to enable the Capital Investment Group in prioritisation, decision making and funding allocation with cognisance of the capital funding available. Estates E1: Initiative 1 E2: Initiative 2 etc. ICT I1: Initiative 1 I2: Initiative 2 etc. Fleet I1: Initiative 1 I2: Initiative 2 etc. Specialist Police Equipment I1: Initiative 1 I2: Initiative 2 etc. Weaponry I1: Initiative 1 I2: Initiative 2 etc. Change I1: Initiative 1 I2: Initiative 2 etc. Identified Initiatives 17

23 OFFICIAL Meeting SPA Finance Committee Date 12 June 2018 Location SPA Headquarters, Pacific Quay Title of Paper 2018/19 Capital and Reform Monthly Profiling Item Number 5.3 Presented By James Gray Recommendation to Members For Noting Appendix Attached Yes Appendix A Capital & Reform Phasing PURPOSE The purpose of this paper is to provide an update to Members on the phasing for the capital and reform budgets for 2018/19. Members are requested to note the information contained in this paper. SPA Finance Committee 12 th June 2018 Capital & Reform Monthly Profiling 2018/19 OFFICIAL 1

24 OFFICIAL 1. BACKGROUND 1.1 The 2018/19 Police Scotland phased Capital Plan was presented to members at the SPA Finance Committee in May 2018/19. Two requests were made by Members in the reviewing this paper as follows: Provide an update to the paper to show the Reform budget phasing for 2018/19 Update to be provided on how the plan B list of projects will be prioritised 2. FURTHER DETAIL ON THE REPORT TOPIC 2.1 Appendix A sets out an update to the document provided to Members in May to include the phasing of the Reform budget in 2018/ Appendix A also sets out the Police Scotland Capital Investment Group (CIG) timetable for 2018/19 and the key activities to be undertaken at each meeting. 2.3 A key activity for the first CIG of the 2018/19 financial year (scheduled for 27 July 2018) will be to undertake a prioritisation exercise for those projects which were considered as part of the long list during the capital planning exercise undertaken in January 2018, but did not receive a funding allocation. Consideration will also be given to the relative priority of any additional potential investments which have come to light in the intervening period. 2.4 A criteria will be developed and agreed by the CIG for scoring potential investments to support prioritisation. This will include the evaluation of an investment s link to the 2026 strategy, deliverability in year, risk and benefits to be realised. 2.5 An update will be provided to Members in August following the first meeting of the Capital Investment Group at the end of Quarter 1. SPA Finance Committee 12 th June 2018 Capital & Reform Monthly Profiling 2018/19 OFFICIAL 2

25 OFFICIAL FINANCIAL IMPLICATIONS 3.1 This paper details the phasing of the planned capital and reform expenditure, providing detail as to the profile of cash requirements across the year. This further supports the organisation in ensuring it is on track to achieve the budgeted position at year end. 3.2 Monthly and quarterly reporting will monitor delivery of the 2018/19 capital and reform budgets. 3. PERSONNEL IMPLICATIONS 4.1 There are no personnel implications associated with this paper. 4. LEGAL IMPLICATIONS 5.1 There are no legal implications associated with this paper. 5. REPUTATIONAL IMPLICATIONS 6.1 There is a reputational risk around not achieving the capital and / or reform budgets, however this paper supports the mitigation of this risk through the provision of detailed timings allowing earlier identification of any slippage. 6. SOCIAL IMPLICATIONS 7.1 There are no social implications associated with this paper. 7. COMMUNITY IMPACT 8.1 There are no community implications associated with this paper. 8. EQUALITIES IMPLICATIONS 9.1 There are no equality implications associated with this paper. 9. ENVIRONMENT IMPLICATIONS 10.1 There are no environmental implications associated with this paper. SPA Finance Committee 12 th June 2018 Capital & Reform Monthly Profiling 2018/19 OFFICIAL 3

26 OFFICIAL RECOMMENDATIONS Members are requested to note the information contained within this report. SPA Finance Committee 12 th June 2018 Capital & Reform Monthly Profiling 2018/19 OFFICIAL 4

27 OFFICIAL Capital & Reform Phasing 2018/19 May 2018

28 OFFICIAL Contents Purpose 2018/19 Capital Plan 2018/19 Capital Phasing 2018/19 Reform Phasing Next Steps 2

29 OFFICIAL Purpose In recent years, SPA and Police Scotland have monitored capital expenditure to year end forecast and have not established phased capital budgets. This has resulted in the majority of capital spend occurring in the final weeks or months of the financial year. The charts below highlight that over 67% of the capital plan in the last two years was delivered in the final quarter. Capital Expenditure per Quarter Percentage of Capital Plan Complete m % 75% 50% % 21% 32% 28% 0 Q1 Q2 Q3 Q4 0% 10% Q1 Q2 Q3 Q4 2016/ / / /18 A back ended capital plan provides little flexibility in addressing capital priorities and creates a significant workload and pinch points across the organisation. As such, as agreed by the Capital Investment Group. The 2018/19 capital plan will be phased throughout the financial year, with items occurring in Q4 by exception. 3

30 OFFICIAL 2018/19 Capital Plan The approved 2018/19 Capital Plan is presented below. Minor updates have been made to capture revised budget requirements and accommodate 2017/18 project slippage. Police Scotland Capital Expenditure Plan ( m) CIG Approved Plan Revised Plan Change Business As Usual Rolling Programmes Estates Fleet ICT Specialist Policing Equipment (0.04) Unallocated elements of 5% reduction. Weaponry Total Rolling Programmes (0.04) Change Programmes Corporate Services Transformation Commercial Services Transformation - Procure to Pay Commercial Services Transformation - Telematics Reduction in 2 nd invoice due to VAT Criminal Justice & Custody Custody Remodelling Criminal Justice & Custody Productions Remodelling Criminal Justice & Custody CJ Records Management Criminal Justice & Custody Speed Awareness Digitally Enabled Policing - Mobility Digitally Enabled Policing Core Operating Systems Cybercrime Capability (0.01) Rounding Payroll Transformation ICT - National Network ICT - ADEL Reduction in actual contractor rates vs forecast in FBC ICT - Digital ICCS Automatic Number Plate Recognition Total Change Programmes Small Change Activity CHIS Handling Equipment Total Small Change Activity /18 Project Slippage Speed Detection (0.11) Supplier unable to deliver in March 2018 Airwave Migration (0.20) Supplier unable to deliver in March 2018 Microwave Downlink (0.10) Supplier unable to deliver in March 2018 Vehicle Equipment Group - Interim Signs (0.09) Supplier unable to deliver in March 2018 Total 2017/18 Project Slippage (0.49) Total Police Scotland Capital Plan (0.03) SPA Corporate / Forensics (0.07) Total SPA Capital Plan (0.10) Oversubscription The oversubscription will be actively managed down through any in year slippage, procurement and re prioritisation of budget at CIG. 4

31 OFFICIAL 2018/19 Capital Phasing The phased budgets for all capital expenditure is detailed in the table below. Police Scotland Capital Expenditure Plan ( m) Total Q1 Q2 Q3 Q4 Business As Usual Rolling Programmes Estates Fleet ICT Specialist Policing Equipment Weaponry Total Rolling Programmes Change Programmes Corporate Services Transformation Commercial Services Transformation - Procure to Pay Commercial Services Transformation - Telematics Criminal Justice & Custody Custody Remodelling Criminal Justice & Custody Productions Remodelling Criminal Justice & Custody CJ Records Management Criminal Justice & Custody Speed Awareness Digitally Enabled Policing - Mobility Digitally Enabled Policing Core Operating Systems Cybercrime Capability Payroll Transformation ICT - National Network ICT - ADEL ICT - Digital ICCS Automatic Number Plate Recognition Total Change Programmes Small Change Activity CHIS Handling Equipment Total Small Change Activity /18 Project Slippage Speed Detection Airwave Migration Microwave Downlink Vehicle Equipment Group - Interim Signs Total 2017/18 Project Slippage Total Police Scotland Capital Plan SPA Corporate / Forensics Total SPA Capital Plan Total Budget Phasing 9% 18% 43% 30% 5

32 2018/19 Capital Phasing cont. OFFICIAL Capital budgets have been phased as early in the financial year as possible. Only by exception, i.e. operational requirement, governance approvals, procurement timescales etc. have items been phased into Q4. The charts below highlight that 85% of the BAU capital programme is phased to be completed by the end of Q3. Only Weaponry have less than 80% phased by this point, due to the ongoing consultation and review of the Body Armour Working Group and likely subsequent procurement timescales. By the end of Q3, 54% of the Change capital programme is due to be complete. Large projects such as Digital ICCS, National Network, Core Operating Solution and Mobility all have significant elements of expenditure in Q4. Rolling Programmes - Q2 & Q3 Percentage Complete Change Programmes - Q2 & Q3 Percentage Complete Combined 35% 50% Combined ANPR 19% 33% 35% 67% ICT - Digital ICCS 20% 10% Weaponry 22% 10% ICT - ADEL ICT - National Network 14% 41% 14% 29% Payroll Transformation 75% 25% SPE 50% 30% Cybercrime Capability DEP Core Operating 15% 41% 85% DEP - Mobility ICT 22% 70% CJCS Speed Awareness 100% CJCS CJ Records 100% Fleet 34% 63% CJCS Productions CJCS Custody Remodelling 30% 25% 70% 75% CST - Telematics 100% Estates 50% 34% CST - Procure to Pay CSST 100% 0% 20% 40% 60% 80% 100% Q2 Q3 0% 20% 40% 60% 80% 100% Q2 Q3 6

33 OFFICIAL Capital Summary Summary The charts below highlight the impact of the proposed changes, where 70% of the capital plan will be delivered through Q3 and amounts forecast for spend in Q4 are almost half of those processed in the final quarter of 2017/18. Millions Capital Expenditure per Quarter % 75% Percentage of Capital Plan Complete 70% % 32% 5 25% 28% 0 Q1 Q2 Q3 Q4 2016/ / /19 0% Q1 Q2 Q3 Q4 2016/ / /19 7

34 OFFICIAL 2018/19 Reform Phasing The phased budgets for reform expenditure is detailed in the table below. Each of these line items (excluding VR VER) are factored into individual Change project budgets which have been set based on approved business cases, or notionally allocated (for projects where business cases are in development) pending approval through the relevant governance processes. Revenue Reform Total Phasing /19 m Q1 Q2 Q3 Q4 TOTAL Funding 25.0 m m m m m TRCG New Professional Services Digital & Efficiency Transformation Corp Services Transformation Operation Policing Transformation VR VER Total Committed & Planned Expenditure

35 OFFICIAL Next Steps Next Steps Monthly monitoring of budgets and support to be provided by finance business partners. Quarterly meetings of Capital Investment Group will review progress against budget and to reprioritise in year spend if required. The remit of the Capital Investment Group will also be extended to include review of progress on reform funding and reprioritise where necessary. The calendar for the group for the 18/19 financial year is as follows: Date Late July (27-Jul-18) September Onward (01-Sep-18) Late October (25-Oct-18) Late October (31-Oct-18) Mid December (12-Dec-18) Late January (29-Jan-19) Activity Capital Investment Group - Discussion of Q1 outturn - Consider potential pressures and/or underspends - Review and prioritise the existing 'long list' of projects without funding - Make reallocation decisions where applicable - Consider any new additions to the 'long list' Business to prepare business cases for capital funding requests for 2018/19 Capital Investment Group - Discussion of Q2 outturn - Consider potential pressures and/or underspends - Review and prioritise the existing 'long list' of projects without funding - Make reallocation decisions where applicable - Consider any new additions to the 'long list' Business to finalise capital funding requests for collation by Finance Capital Investment Group - Discussion of Period 8 outturn and Planning for 2019/20 - Discussion of Period 8 outturn - Consider potential pressures and/or underspends - Review and prioritise the existing 'long list' of projects without funding - Make reallocation decisions where applicable - Review first cut of the asks for funding in 2019/20 across BAU and Change - Make recommendations of indicative funding levels and areas where cuts/uplifts should be considered Capital Investment Group - Discussion of Q3 Outturn and Planning for 2019/20 - Discussion of Q3 outturn - Consider potential pressures and/or underspends - Review and prioritise the existing 'long list' of projects without funding - Make reallocation decisions where applicable - Consider any new additions to the 'long list' - Make final decisions on the funding allocations for 2019/20 9