The National Audit Office report criticises Government cuts and calls for a review of the funding formula.
It also accuses the Home Office of failing to understand the demands on police or the impact of the financial cutbacks and says the formula should take account of police forces' local circumstances.
Devon and Cornwall Police and Crime Commissioner Tony Hogg says the Home Secretary doesn't seem to recognise the demands on police which don't directly involve crime.
Body found in Bideford fire investigation
Three teenagers currently on bail
Royal Clarence Hotel redevelopment to start
Work to start on historic city centre building
Road closures for Tar Barrels event
Organisers list road closures and residents-only access.
More redundancies at Devon shipbuilder
Redundancies could include managerial roles.
Devon's fire service change alarm response
Changes could save hundreds of thousands of pounds.
Exeter woman averts disaster at Greek airport
Exeter woman hailed 'a hero'.
