|Year to Date||Annual|
|Budget||Actual||Budget vs. Actual Variance Favourable/(Unfavourable)||Budget||Forecast||Budget vs. Forecast Variance Favourable/(Unfavourable)|
|Operational & Supply||1,071||1,373||-302||(28.1%)||2,143||2,143||0||(0.0%)|
|Occupancy & Infrastructure||171||93||78||45.7%||341||341||0||(0.0%)|
|Equipment, Vehicles, Technology||2,911||2,965||-54||(1.9%)||5,822||5,822||0||(0.0%)|
|Federal & Provincial Grants||-4,525||-4,525||-1||0.0%||-9,051||-9,051||0||(0.0%)|
|By-Law Charges & Sales||-3,560||-3,350||-210||5.9%||-7,119||-7,119||0||0.0%|
|Total Intercompany Charges||-646||-655||9||(1.4%)||-1,266||-1,275||9||(0.7%)|
|Net Expenditure (Revenue) Before Transfers & Indirect Allocations||63,986||66,844||-2,858||(4.5%)||127,899||134,290||-6,391||(5.0%)|
|Transfers from Funds||-225||-225||0||0.0%||-225||-4,592||4,367||(1940.8%)|
|Transfers to Funds||9,585||9,585||0||0.0%||9,585||9,585||0||0.0%|
|Indirect Allocations & Debt|
|Capital Financing Allocation||1,063||1,062||0||0.0%||3,931||3,930||0||0.0%|
|Total Indirect Allocations & Debt||4,057||5,075||-1,018||(25.1%)||9,900||10,988||-1,087||(11.0%)|
|Net Expenditure (Revenue) After Transfers & Indirect Allocation||77,403||81,279||-3,876||(5.0%)||147,160||150,271||-3,112||(2.1%)|
The year to date result at June 30 was a Net Expenditure deficit of $2,858 before indirect allocations. At this time, the Service is forecasting a year-end position of $2,024 over the approved budget before indirect allocations.
At June 30, Personnel Costs exceeded the approved budget by $2,504. This deficit is mainly the result of the implementation of the new collective agreements and costs associated with retirements.
The yearend forecasted deficit to Personnel Costs of $6,400 includes the impact of the arbitration award of $5,700 and the cost of termination pay-outs of $700. A transfer from NRPS reserve funds of $4,400 is included in the forecast as a partial offset to this expense.
In an effort to reduce the impact of the year end deficit, the Service has limited the use of temporary staff and overtime to operationally essential vacancies or in exigent circumstances.
Other Operational Expenditures are comprised of all other operating expenditures excluding Personnel Costs, Financial Expenditures and Interfunctional Transfer. The net deficit of $400 is caused by the timing of expenditures. The Service continues to monitor spending of discretionary accounts however much of the expenditures are fixed contractual obligations.
Gross Revenues and Recoveries are trending on budget. The yearend forecast includes the budgeted $2,666 transfer from the Contingency Reserve to offset collective agreement implementation results, a transfer of $700 from the Sick Leave Reserve to offset the sick leave payout deficit and a $1,000 transfer from the Employee Future Benefit Reserve to mitigate the overall deficit.
As detailed in a May 2017 report to the Board, the Service's reserves, in accordance with the Region's guidelines are underfunded. As further deficit mitigation from Service reserves would compound the underfunding. The Niagara Region will wait for recommendations from the Police Service Board.
The detailed variance analysis and forecast have been prepared based on results of operations at June 30, 2017. At June 30, the Service is forecasting a $2,024 expenditure deficit net of the potential $4,367 recommended year-end transfers from Service reserves.