'Failures' led to £65m police budget hole - experts

An investigation into a £65m budget hole at South Yorkshire Police has found there were "misjudgements, weaknesses and failures" in key accounting policies.

South Yorkshire Mayor Oliver Coppard launched the investigation in 2024 when he assumed responsibilities for the police and crime commissioner role.

His finance officers highlighted "serious accounting omissions and budgetary errors, which had gone undetected in previous financial years", although there was no indication of fraud.

Former Police and Crime Commissioner Dr Alan Billings, who oversaw the budget at the time, called for the report to be withdrawn, saying it was "a difference of professional judgement" between finance officers.

The investigation began after the functions and responsibilities of the police and crime commissioner role were transferred to the mayor.

While the probe was under way, South Yorkshire Police was given permission by the government to use up to £17m from long-term financial reserves to cover a budget gap.

The report, conducted by the Chartered Institute of Public Finance and Accountancy, focused on "how significant accounting and budgetary omissions occurred".

It said: "Between 2018/19 and 2023/24, the former office of police and crime commissioner had arranged the financing of approximately £65m in capital investment through borrowing, but corresponding charges had not been applied or recognised in budgeting.

"This omission resulted in under-provision in the published accounts, an overstatement of revenue reserves and contributed to a projected shortfall of £49.5m in the medium-term resourcing strategy of the force."

The report said the discrepancies had "significant and immediate implications" for financial planning.

It added: "The issues identified arose from a combination of technical misjudgements, systemic weaknesses in financial governance and understanding, and failures across the wider assurance framework.

"These shortcomings reflect weaknesses in governance, scrutiny, and professional challenge in reviewing a key accounting policy."

Billings said it had been a "difference of professional judgement" between his former finance officers and incoming finance officers of the mayor.

He said: "This is not about accounting errors but a disagreement about deliberate and permissible choices.

"My officers chose to finance £65m of capital spending - items such as vehicles, IT, buildings - from existing funds rather than borrow from external lenders.

"This saved thousands of pounds in interest charges and enabled the police to get on with their job.

"This was fully understood by the police and the auditors at the time and over subsequent years. This is why the auditors signed off the finances year on year."

Billings said the matter had "hung unfairly" over him and former finance officers for almost two years.

"Despite the alarmist rhetoric when this investigation was initiated, police finances have been managed, surpluses have been recorded and budgets balanced."

Coppard said the investigation was the right decision. "We have flagged this, shown people there was a problem and we have gripped that and are moving forward with a balanced budget."

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