Registered number:
(A company limited by guarantee)
FOR THE YEAR ENDED 31 MARCH 2024
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
COMPANY INFORMATION
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
CONTENTS
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their Strategic report for the year ended 31 March 2024.
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.
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.
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.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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.
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.
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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.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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 2006. They 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.
The deficit for the year, after taxation, amounted to £1,027,153 (2023 - surplus £2,422,387).
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The directors who served during the year were:
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.
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.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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.
Business review and financial indicators are disclosed in the Strategic report.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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.
There have been no significant events affecting the Company since the year end.
The auditors, Barnes Roffe LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE
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 policies. The 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).
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.
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.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE (CONTINUED)
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 Report. Our 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.
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.
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.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE (CONTINUED)
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:
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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.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POLICE DIGITAL SERVICE (CONTINUED)
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 2006. Our 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Brook Business Centre
Cowley Mill Road
Middlesex
UB8 2FX
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
REGISTERED NUMBER: 08113293
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 18 to 28 form part of these financial statements.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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
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:
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.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (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:
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.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Analysis of turnover by country of destination:
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
There are no significant factors that may materially affect future tax charges.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Surplus and deficit account
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.
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.
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POLICE DIGITAL SERVICE
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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.
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