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Registered number: 08113293









POLICE DIGITAL SERVICE
(A company limited by guarantee)









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 
 
COMPANY INFORMATION


Directors
R J Carden 
S P Parr 
D M Allen 
G J Stephens 
A Dunbobbin 
B Page-Jones 
S A Bourne 
D A Preston 
H Ind 
J Evison

T A Dwyer
D Jones
R C Hirst
A R Eastaugh


Company secretary
L Spiers



Registered number
08113293



Registered office
20 Gresham Street

London

England

EC2V 7JE




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors

3 Brook Business Centre

Cowley Mill Road

Uxbridge

Middlesex

UB8 2FX





 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 6
Independent auditors' report
 
7 - 11
Statement of comprehensive income
 
12
Statement of financial position
 
13
Statement of changes in equity
 
14 - 15
Statement of cash flows
 
16
Analysis of net debt
 
17
Notes to the financial statements
 
18 - 28

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present their Strategic report for the year ended 31 March 2024.

Business review and future developments
 
The Company has continued to develop and grow its position at the centre of policing - assuming responsibility for national programmes and supporting the development and delivery of national strategy - whilst at the same time continuing to support and deliver for forces directly and at a local level.
                                                             
The Company received a Grant award for the value of £32,034,733 from the Home Office National Police Capabilities Unit and Capabilities Reform Unit to be used for the purpose of portfolio of inter-connected digital and forensic national programmes led by Police Digital Service to implement the National Police Digital Strategy and digital transformation across policing to support crime reduction, protect the public and drive efficiencies.
The company has made a deficit before taxation of £1,267,432 
(surplus 2023 - £2,695,151) during the year which means at the end of the year there are net assets of £11,305,464 (2023 - £12,332,617).
The directors are pleased with these results and aim to maintain and improve them over the coming years.

Stakeholder engagement
 
As the Board of Police Digital Service, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company’s success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders.
The directors consider that they have acted in good faith in ways that would most likely promote the success of the company for the benefit of its members as a whole, and in doing so have regard to a number of matters including:
 
How our everyday decision making affects the reputation of the company with customers, employees and suppliers.
Making strategic decisions in the best interests of the financial stability of the company and its future projects.
 
The directors consider carefully the consequences of all projects, ensuring they are fully planned and costed, taking account of the wider impacts on the business and the environment. In addition, the company's operations continually strive to minimise environmental impact.

Principal risks and uncertainties
 
The company's operations expose it to a variety of financial risks that include the effects of market risk (including currency risk and price risk), credit risk and liquidity risk. The company's overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the company's financial performance. The company uses sound management principles to protect against certain financial risk exposure.
The directors are responsible for setting the objectives and underlying principles of financial risk management for the company. The senior management team then establishes the detailed polices such as authority levels, oversight responsibilities, risk identification and measurement, exposure limits and hedging strategies. The policies set by the Board of directors are implemented by the company's finance department.
 
Page 1

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Non financial key performance indicators
 
Staff Turnover
There has been a slight increase in employee turnover in the current year compared to the prior year. As the length of service of employees increases within the company, it is reasonable to assume that we will see a small increase in employee turnover. However, the directors were pleased with a turnover under 15% and retention over 85% and better than UK average.

Financial key performance indicators
 
The directors have monitored the progress of the company strategy by reference to certain financial key performance indicators:
The company's turnover was £67,590,295 
(2023 - £73,072,982) due predominantly to a drop in third-party sales as we re-focus our organisational strategy towards the National Policing Digital Strategy.
Debt management 
Improvements to credit control procedures over time have resulted in all major debt being collected as at year end with those outstanding being within normal terms.
Cashflow
The company’s financial position remains strong and we are looking at options to increase return on funds with minimal risk.   
Commercial savings 
We have demonstrated our value to forces by obtaining a score greater than 100% in comparative measures of savings obtained by forces in accordance with the Home Office criteria.
Internal review
Since the year end, the company has commenced an internal review focusing on governance and internal control procedures.


This report was approved by the board on 22 October 2024 and signed on its behalf.



D M Allen
Director
Page 2

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the surplus or deficit of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results

The deficit for the year, after taxation, amounted to £1,027,153 (2023 - surplus £2,422,387).
Page 3

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


Directors

The directors who served during the year were:

I K Bell (resigned 11 July 2024)
R J Carden (appointed 19 October 2023)
S P Parr (appointed 19 October 2023)
M J Hewitt (resigned 18 May 2023)
D Llywelyn (resigned 19 October 2023)
S G Mold (resigned 21 March 2024)
A Todd (resigned 19 October 2023)
G J Stephens (appointed 19 October 2023)
J H Cuthbert (resigned 7 May 2024)
A Dunbobbin 
J Farrell (resigned 19 October 2023)
B Page-Jones 
D Scates (resigned 19 October 2023)
S M Turner (resigned 9 May 2024)
S A Bourne 
D A Preston 
A J Snowdon (resigned 10 May 2024)
H Ind (appointed 19 October 2023)
A W Mclaren (appointed 19 October 2023, resigned 18 June 2024)

T A Dywer, J Evison,  D M Allen and D Jones were appointed as directors on 4 June 2024.  A W Fairley was appointed as a director on 4 June 2024 and resigned on 25 July 2024.
R C Hirst was appointed as a director on 17 June 2024.
A R Eastaugh was appointed as a director on 19 August 2024.
Future developments
Future developments are described in the Strategic report.
 

Engagement with employees

Improving the culture and engagement with employees at all levels within Police Digital Service continued to be an important workstream throughout 2023/2024, helping to develop a culture where our people feel they matter and understand how their role contributes to the success of the business. The programme of work that we instituted previously to drive further investment in our employees, their careers and training is progressing well. These objectives continue to be important foundations for the way we shall operate in 2024/25 and beyond.


Page 4

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Statement of carbon emissions in compliance with Streamline Energy and Carbon Reporting
("SECR")

The SECR methodology used in the following disclosures is as specified in "Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting and greenhouse gas reporting" used in conjunction with Government GHG reporting conversion factors.
Energy (kWh)     2024  2023
Vehicle fuel       190,647 73,624   
Rail travel      13,021 4,249
Electricity       -  -   
Gas       -  -
Total energy        203,668 77,873 
Emissions (tCO2e)     
Fuel             46.5  17.9  
Rail            7.0  2.3  
Electricity           -  -  
Gas            -  -
Total             53.5  20.2  
Intensity metric
£m turnover          67.59  73.07
tCO2e per m turnover  .     0.79  0.28  
 
PDS acknowledges the increase in the carbon footprint between the two years. Whilst this is not an ideal position for PDS, it is a reflection on the difference in years with a significant increase in employees in 23/24 as the role of PDS changes. Whilst PDS will endeavour to reduce this number in the longer term, it feels in the short term this could continue to increase.
The Board is committed to reducing the business's environmental impact and contribution to climate change. We  have assessed and measured our carbon footprint, including some Scope 3 emissions, and have data collation and reporting mechanisms in place to manage this.
We have identified that the majority of our carbon emissions arise from Scope 3 activities such as travel on public transport and in employees' own vehicles and our supply chain impacts. We have not currently included the contribution from electricity and gas usage in our workplace as this is in serviced offices.
 



Matters covered in the Strategic Report

Business review and financial indicators are disclosed in the Strategic report.
Page 5

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

There are a number of new Board Directors on the PDS Board.  These accounts have been adopted on good faith, based on the information provided to the existing Board.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 22 October 2024 and signed on its behalf.
 





D M Allen
Director
Page 6

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE
 

Opinion


We have audited the financial statements of Police Digital Service (the 'Company') for the year ended 31 March 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its deficit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 7

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 8

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:
 
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector;
The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows:
 
°Companies Act 2006.
°FRS102.
°Employment legislation.
°Tax legislation.
 
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and reviewing supporting evidence where applicable; and
Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non-compliance throughout the audit.
Page 9

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE (CONTINUED)


 

We assessed the susceptibility of the company's financial statements to material misstatement, including  obtaining an understanding of how fraud might occur by:
 
Making enquiries of management as to where they consider there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud;
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
Reviewing the financial statements and testing the disclosures against supporting documentation;
Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
Inspecting and testing journal entries to identify unusual or unexpected transactions;
Assessing whether judgement and assumptions made in determining significant accounting estimates were indicative of management bias; and
Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company's usual course of business.
 
The areas that we identified as being susceptible to misstatement through fraud were:
 
Management bias in the estimates and judgements made;
Management override of controls; and
Posting of unusual journals or transactions.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Page 10

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Mark Hancock FCA (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors
3 Brook Business Centre
Cowley Mill Road
Uxbridge
Middlesex
UB8 2FX

28 November 2024
Page 11

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
67,590,295
73,072,982

Cost of sales
  
(54,934,827)
(60,315,415)

Gross surplus
  
12,655,468
12,757,567

Administrative expenses
  
(13,927,014)
(10,062,464)

Operating (deficit)/surplus
 5 
(1,271,546)
2,695,103

Interest receivable and similar income
 9 
4,114
48

(Deficit)/surplus before tax
  
(1,267,432)
2,695,151

Tax on (deficit)/surplus
 10 
240,279
(272,764)

(Deficit)/surplus for the financial year
  
(1,027,153)
2,422,387

Total comprehensive income for the year
  
(1,027,153)
2,422,387

The notes on pages 18 to 28 form part of these financial statements.
Page 12

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
REGISTERED NUMBER: 08113293

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
162,319
5,920

Current assets
  

Debtors: amounts falling due within one year
 12 
19,206,955
25,720,233

Cash at bank and in hand
 13 
10,870,060
11,186,648

  
30,077,015
36,906,881

Creditors: amounts falling due within one year
 14 
(18,933,870)
(24,580,184)

Net current assets
  
 
 
11,143,145
 
 
12,326,697

Total assets less current liabilities
  
11,305,464
12,332,617

  

Net assets
  
11,305,464
12,332,617


Capital and reserves
  

Surplus and deficit account
 16 
11,305,464
12,332,617

  
11,305,464
12,332,617


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 October 2024.




D M Allen
Director

The notes on pages 18 to 28 form part of these financial statements.
Page 13

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Surplus and deficit account
Total equity

£
£

At 1 April 2023
12,332,617
12,332,617


Comprehensive income for the year

Deficit for the year
(1,027,153)
(1,027,153)
Total comprehensive income for the year
(1,027,153)
(1,027,153)


At 31 March 2024
11,305,464
11,305,464


The notes on pages 18 to 28 form part of these financial statements.
Page 14

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Surplus and deficit account
Total equity

£
£

At 1 April 2022
9,910,230
9,910,230


Comprehensive income for the year

Surplus for the year
2,422,387
2,422,387
Total comprehensive income for the year
2,422,387
2,422,387


At 31 March 2023
12,332,617
12,332,617


The notes on pages 18 to 28 form part of these financial statements.
Page 15

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

(Deficit)/surplus for the financial year
(1,027,153)
2,422,387

Adjustments for:

Depreciation of tangible assets
34,955
7,931

Interest receivable
(4,114)
(48)

Taxation charge
(240,279)
272,764

Decrease/(increase) in debtors
6,101,740
(13,575,694)

(Decrease)/increase in creditors
(5,373,550)
10,647,732

Corporation tax received
379,053
-

Net cash used in operating activities

(129,348)
(224,928)


Cash flows from investing activities

Purchase of tangible fixed assets
(193,451)
(3,875)

Sale of tangible fixed assets
2,097
-

Interest received
4,114
48

Net cash used in investing activities

(187,240)
(3,827)


Net (decrease) in cash and cash equivalents
(316,588)
(228,755)

Cash and cash equivalents at beginning of year
11,186,648
11,415,403

Cash and cash equivalents at the end of year
10,870,060
11,186,648


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
10,870,060
11,186,648

10,870,060
11,186,648


The notes on pages 18 to 28 form part of these financial statements.

Page 16

 
POLICE DIGITAL SERVICE
 
(A company limited by guarantee)
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

11,186,648

(316,588)

10,870,060


11,186,648
(316,588)
10,870,060

The notes on pages 18 to 28 form part of these financial statements.
Page 17

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Police Digital Service is a company limited by guarantee, incorporated in England and Wales. The address of the registered office is 20 Gresham Street, London, England, EC2V 7JE.
The company specialise in meeting the Information Technology requirements of its members.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis. The directors have considered the factors which impact the company's future development, performance, cash flow, and financial position in forming their opinion on the going concern basis. The directors believe that the company has adequate resources to continue to operate and meet obligations as they fall due for a period of not less than 12 months from the date these financial statements are approved and therefore use of the going concern assumption is appropriate.
Page 18

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in surplus or deficit except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in surplus or deficit within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Turnover also includes membership payments, which are recognised in the period to which they relate.

Page 19

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.5

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to surplus or deficit at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in surplus or deficit when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Taxation

Tax is recognised in surplus or deficit except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment deficits. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Other fixed assets
-
Straight-line over 3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

No significant judgements in applying accounting policies have had to be made by management in preparing these financial statements. Management have had to make estimates relating to depreciation based on estimated useful life of the assets. Furthermore, the company's projects accrue revenue on a monthly basis and in line with the costs arising on the projects. The directors therefore do not believe that there is any significant judgement involved in the accounting treatment of the projects and the accrued or deferred income recognized in each period. 

Page 21

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sales to members
31,602,964
28,813,779

Third-party revenue
25,487,293
32,184,203

Salary grants
10,500,038
12,075,000

67,590,295
73,072,982


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
67,590,295
73,072,982

67,590,295
73,072,982



5.


Operating (deficit)/surplus

The operating (deficit)/surplus is stated after charging:

2024
2023
£
£

Depreciation
34,955
7,931


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
20,000
20,000
Page 22

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
16,786,348
10,526,627

Social security costs
1,737,664
748,678

Cost of defined contribution scheme
1,930,434
701,216

20,454,446
11,976,521


The average monthly number of employees, including directors, during the year was 243 (2023 - 142).


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
224,906
216,342

224,906
216,342


The highest paid director received remuneration of £224,906 (2023 - £216,342).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
4,114
48

4,114
48

Page 23

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on surplus for the year
-
272,764

Adjustments in respect of previous periods
(240,279)
-


Total current tax
(240,279)
272,764

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


(Deficit)/surplus on ordinary activities before tax
(1,267,432)
2,695,151


(Deficit)/surplus on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
(316,858)
512,079

Effects of:


Non-taxable income
316,858
(239,315)

Adjustments to tax charge in respect of prior periods
(240,279)
-

Total tax charge for the year
(240,279)
272,764

The adjustment to tax charge in respect of prior period relates to the carry back of current year losses to offset against prior period surplus.


Factors that may affect future tax charges

There are no significant factors that may materially affect future tax charges.
Page 24

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Tangible fixed assets





Other fixed assets

£



Cost 


At 1 April 2023
41,625


Additions
193,451


Disposals
(2,288)



At 31 March 2024

232,788



Depreciation


At 1 April 2023
35,705


Charge for the year
34,955


Disposals
(191)



At 31 March 2024

70,469



Net book value



At 31 March 2024
162,319



At 31 March 2023
5,920

Page 25

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Debtors

2024
2023
£
£


Trade debtors
1,138,297
1,613,925

Other debtors
1,121,804
1,533,342

Prepayments and accrued income
16,946,854
22,572,966

19,206,955
25,720,233



13.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
10,870,060
11,186,648

10,870,060
11,186,648



14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
2,199,148
2,146,063

Corporation tax
-
272,764

Other taxation and social security
591,502
393,256

Other creditors
45,258
-

Accruals and deferred income
16,097,962
21,768,101

18,933,870
24,580,184


Page 26

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through surplus or deficit
2,260,101
3,147,267


Financial liabilities


Financial liabilities measured at amortised cost
2,244,406
2,146,063


Financial assets that are debt instruments measured at amortised cost comprise trade debtors and other debtors.
Financial liabilities measured at amortised cost comprise trade and other creditors.


16.


Reserves

Surplus and deficit account

This reserve represents the cumulative surplus and deficit of the company.



17.


Company status

The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.


18.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £1,076,424 (2023 - £701,216). The employee and the employers contributions totalling £356,014 (2023 - £270,729) were payable as at year end.

Page 27

 
POLICE DIGITAL SERVICE

(A company limited by guarantee)
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£

Land and Buildings


Not later than 1 year
174,000
102,000

174,000
102,000


20.


Related party transactions

Some of the Directors are associated with various police forces. Transactions occurred during the year between Police Digital Service and some of these police forces in the normal course of its objectives.
 
The company has chosen to not disclose any transactions with associated bodies where transactions have taken place in the normal course of their objectives as they do not come within the definition of a related party.
 
Page 28