Dates

Issued: 19/04/06 Topic: Finance and Other Resources

Implementation: 1 April 2006

Contact(s) for more information: Ann Tocher
(At the above address)
(Tel: 0131 244 2148)

Dear Colleague

Purpose of the circular: To inform police authorities and joint police boards of the amount of capital grant payable to them under section 37 of the Local Government in Scotland Act 2003 and of the arrangements for managing underspends of capital grant. A copy of the Police Capital Grant (Scotland) Determination 2006 is enclosed.

A copy of this circular is enclosed for the information of the Director of Finance/Treasurer. Copies have also been sent to the police associations, the Convention of Scottish Local Authorities and the Accounts Commission.

Also enclosed is a list of previous circulars issued in 2006.

Yours sincerely

Ann Tocher

POLICE CAPITAL GRANT ( SCOTLAND ) DETERMINATION 2006

The Scottish Ministers, in exercise of the powers conferred by section 37 of the Local Government in Scotland Act 2003, hereby make the following determination:

Citation and commencement

1. This determination may be cited as the Police Capital Grant (Scotland) Determination 2006 and shall come into force on 1 April 2006.

Interpretation

2. In this determination, unless the context otherwise requires-

"the 1967 Act" means the Police (Scotland) Act 1967 [a];

"the 2003 Act" means the Local Government in Scotland Act 2003 [b];

"authority" means a police authority (not being a constituent authority) or a joint police board;

"Capital Grant" means grant to be paid to police authorities pursuant to paragraph 4 of this Determination;

"financial year " means the financial year commencing on 1st April 2006 and ending on 31 March 2007;

Application

3. This determination makes provision for the payment of Capital Grant to authorities in respect of their capital expenditure. This determination is made under section 37 of the 2003 Act. Capital Grant shall only be used for the purpose of capital expenditure and any such expenditure shall be reasonably and properly incurred.

Amount of Capital Grant to authority for financial year 2006-2007

4. The amount of Capital Grant to be made for the financial year to each authority specified in column 1 of the Table below shall be the amount determined in relation to that authority which is set out in column 2 of that Table opposite to the name of that authority.

TABLE

Payment of Grant

5. The Capital Grant payable to an authority by virtue of this Determination for the financial year shall be paid to that authority in monthly instalments on the 15th day of each month during that year.

Conditions of Grant

6. The Capital Grant payable to an authority by virtue of this Determination for the financial year is subject to the following conditions.

7. Each authority shall maintain accurate records of its capital expenditure and shall submit an audited statement of its capital expenditure for the financial year and a copy of the auditor's certificate for the financial year to Scottish Ministers no later than 30 November of the following financial year.

8. If an authority is likely to under-spend its allocation of Capital Grant for the financial year, it may enter into an agreement with one or more other authorities whereby that authority may transfer a proportion of its Capital Grant to such other authority in respect of that other authority's capital expenditure for the financial year. An authority entering into such an agreement shall first give written notice the Scottish Ministers.

9. If an authority has under-spent or is likely to under-spend, its allocation of Capital Grant, that authority may carry forward that under-spend to the next financial year, provided that:

9.1 where the amount carried forward exceeds 5% of Capital Grant, that amount may only be carried forward if the authority has first obtained the written consent of the Scottish Ministers;

9.2 where the amount carried forward exceeds 5% of Capital Grant, the Scottish Ministers may reduce the following year's allocation of capital grant to that authority by an amount corresponding to such excess; and

9.3 in no case shall an authority carry forward an amount exceeding 10% of Capital Grant.

[a] 1967 c.77.

[b] 2000 asp. 1.