Published Thursday, 16 July 2009
Downing Street, Treasury and Northern Ireland Executive officials will now examine all potential funding pressure points over the summer months with the intention of agreeing a monetary package by September.
The process was hammered out during talks between Gordon Brown and First Minister Peter Robinson and Deputy First Minister Martin McGuinness at No 10.
Sinn Fein deputy leader Mr McGuinness said he was now confident the transfer could be completed before the new year.
"I believe the devolution of policing and justice powers is eminently possible before the end of this year," he said.
"By September we expect a firm offer in terms of how to deal with outstanding legacy issues that we believe the British government have a responsibility to deal with."
Stormont ministers have argued that Mr Brown should not only ensure the Executive has enough money to police the future but also address the many issues related to the past, such as the cost of investigating Troubles killings and compensation claims by former officers.
Mr Robinson said the government had to produce the money before devolution could go ahead.
"There are additional inescapable pressures which must be funded in order that the functions to be devolved are properly carried out and the Executive does not have to use a penny of its own resources," he said.
The Democratic Unionist leader said once a financial deal was in place he would commence a public consultation exercise to ensure there was community confidence for the legislative move.
He said he would also consult fully with other political parties at Stormont.
"Everyone will have an opportunity to have their say and progress will be based on people being comfortable in moving forward," he said.
"I want the whole process to be entirely open and transparent. That is why at every stage I have placed in the public domain any and all agreements I have reached. There are no hidden deals or understandings."
Report
The meeting came as the Police Service of Northern Ireland's oversight body - the NI Policing Board - published its annual report.
Recently retired board chair Sir Desmond Rea said policing was now ready for devolution.
"We are now entering the final phase of the policing change programme with the process now in place to facilitate the transfer of powers to the Northern Ireland Assembly," he said.
"Policing is ready for the devolution of policing and justice - as is this Board."
Before the talks at No 10, Stormont's top two ministers met with Treasury officials to discuss progress on assisting savers in the ill fated Presbyterian Mutual Society (PMS).
Finance Minister Sammy Wilson and Enterprise Minister Arlene Foster were also present for those negotiations.
The Prime Minister has already agreed to set up a working group to examine how investors can recoup the millions lost when the Belfast-based society went under late last year.
After the meeting, Mr McGuinness said he was more hopeful savers would get the assistance they needed.
"I am increasing confident this is an issue that can be resolved," he said.
"But it needs to be done as a matter of urgency, people need to realise the difficulties that have been imposed on many savers who in many instances have put their life savings in the PMS."