lost iphone

I lost my iphone yesterday whilst walking along Green Lanes up Umfreville Rd , along Endymion and onto Upper Tollington Park. It was in a small Indian style zipped bag with a string to wear around neck. I have tried ringing it but it goes to voicemail immediately. It is marked lost with a contact number and a reward via the iphone app itself, should anyone manage to get it unlocked and get on the www. Is there any point in reporting it lost to the police. Do people actually hand phones in these days ? Any advice most welcome.