Resource Accounts
Management Commentary
Introduction
The Accounts report the resources that have been consumed working to deliver the Department's aim and objectives. This report has been prepared in accordance with the guidance set out in the Government’s Financial Reporting Manual (FReM).
Spending Review 2004
The Government spending plans for the CPS for the three years from 2005-06 to 2007-08, which were announced in July 2004 as part of the 2004 Spending Review represent an average increase in real terms of 3 per cent a year. From 2005-06 onwards, HM Treasury has agreed to switch frontline costs, previously classified as administration costs, into programme costs.
The new spending plans require the CPS to:
- Deliver more challenging Public Service Agreement (PSA) targets. Further details on performance against current PSA targets can be found within the body of the Annual Report under the heading: Criminal Justice System Performance.
- Complete the rollout of full statutory charging across England and Wales by March 2007;
- Improve the handling of victims and witnesses, promote their needs, ensure that victims' views are represented and enable both victims and witnesses to give evidence effectively; and
- Deliver significant efficiency savings that amount to £34 million in 2007-08. Further details can be found within the body of the Annual Report under the heading: Criminal Justice System Performance.
Departmental Report
The CPS Departmental Report is presented to Parliament as part of the Law Officers' Departments Departmental Report. The report for 2006-07 was published in May 2007 and can be found on the CPS website: www.cps.gov.uk
The coverage of the report includes the following main elements:
- Progress on delivering public services, including departmental objectives, PSA targets and modernising government;
- Recent developments in the CPS, including reorganisation and other new legislative and working practice initiatives;
- An analysis of expenditure over the previous five years and the expenditure plans for the next three years; and
- CPS performance and achievements.
The Autumn Performance Report 2007 will be published in December 2007 and provides supplementary performance information on PSA targets and progress on the key initiatives being undertaken by the CPS and other CJS agencies. Autumn Performance Reports are available at www.cps.gov.uk
Operating and Financial Review
a) Operating Review
(i) CPS Business Strategy for 2005-08
The CPS Business Strategy for 2005-08 focuses on how to deliver the PSA targets which represent the Government's key objectives in criminal justice, and the basis on which funding for the Service is provided.
The CPS Vision to become a world class prosecution authority and supporting business strategy has been developed with regard to a number of business drivers and changes across the CJS and to wider Civil Service reforms.
The Business Strategy sets out a challenging reform agenda for the CPS over the three years to 2008. The changes set out in the Strategy are part of the wider reform of the CJS and are essential if the CPS is to play its full part in a more efficient and effective CJS and become more accountable to local communities.
The planned changes, which are described in detail in the body of the Annual Report, will mean a more confident, strong and independent CPS that is better equipped to bring more offenders to justice and to prevent offenders profiting from their criminality. It will mean that people will be more secure from anti-social behaviour and crime, communities will be safer places to live and work and the public will have more confidence and trust in the CPS and in the CJS as a whole.
(ii) Key Strengths
The Board believes the key strengths of the CPS include:
The department has clear, strong direction and leadership that has transformed the organisation's role, performance and reputation in recent years. The vision has enthused and raised the ambitions of many staff and has attracted more high quality recruits. The CPS employs 2,879 prosecutors, 838 are Higher Court Advocates able to present cases in the Crown Court and in the Higher Courts. The department also employs 390 Designated Caseworkers able to present cases in the magistrates' courts. Both groups are representative of the increasing professionalism of the CPS.
The CPS has made good progress in building positive and effective working relationships with its partners and becoming an influential voice within the Criminal Justice System.
The CPS has a proven track record for successfully planning, resourcing and delivering major change initiatives including assuming the responsibility for determining the appropriate charge in all but the most routine cases, implementation of joint Witness Care Units with the police to provide a single point of contact for witnesses and the successful implementation of national Case Management and Witness Management Systems based on up to date IT infrastructure provided through a PFI between the CPS and LogicaCMG.
Further details of IT and leasehold assets will be provided in the department's Asset Management Strategy to be published in the autumn.
The 2007-08 Main Estimate for the CPS has been approved and no changes are anticipated.
(iii) Future Factors
CSR2007
The Government has commenced a Comprehensive Spending Review 2007 (CSR2007) which will determine spending plans and performance targets for all departments for financial years 2008-09 to 2010-11. CSR2007 will deliver a long term and fundamental review of government expenditure. The Government has agreed spending plans early with some departments including the Attorney General's departments and these were announced in the pre-Budget speech in March. Although financial plans for the next three years have not been finalised, the CPS will be expected to deliver baseline efficiency savings of 3.5 per cent per year with a focus on cashable savings to free up resources to meet the challenges ahead. In addition, the administration budget for the department will be reduced by 5 per cent per year in real terms over the CSR2007 period, releasing additional resources for reallocation to frontline service delivery.
(iv) Summary of Performance
The CPS has continued to make substantial progress in its reform programme in 2006-07 and in working to achieve the SR2004 PSA targets. Full details of performance and achievements during the year and comparisons with achievements in previous years can be found within the body of the Annual Report under the heading: Criminal Justice System Performance.
The CPS' Business Strategy for 2005-08 together with the CPS Business Plan for 2007-08 focus on how the PSA targets will be delivered and are available on the CPS website: www.cps.gov.uk
(v) Sustainability
Environmental Matters
The key CPS objectives to incorporate sustainable development and social and community issues are discussed in the body of the Annual Report under the headings: Sustainable Development and Social and Community Issues. The CPS, along with the other Law Officers’ Departments, have agreed the Law Officers' Departments Sustainable Development Action Plan which will be published on the CPS website: www.cps.gov.uk
b) Financial Review
The CPS net Request for Resources (RfR), as voted by Parliament, for the period to 31 March 2007 was £621 million. Our outturn on expenditure as shown in the 2006-07 Accounts, Statement of Parliamentary Supply, was £616 million.
As part of the 2000 Spending Review plans, HM Treasury created a criminal justice reserve which set aside funding to provide for unforeseen pressures and trilaterally agreed new initiatives. The Attorney General, the Home Secretary and the Lord Chancellor agreed to allocate £76 million from the reserve in 2004-05 to the CPS to continue the reform of the Service. The investment has enabled the Service to direct additional resources to the more serious cases, progress the implementation of the charging initiative, bring more offences to justice, provide better support for victims and to implement the recommendations of Speaking up For Justice. The reserve became part of CPS baseline funding from 2005-06.
Note 2 to the Accounts analyses expenditure within the Departmental Expenditure Limit (DEL) by the Department's two functions, Administration and Crown prosecutions and legal services.
Administration represents the costs of running the Department and includes only those costs not attributed to front line services directly associated with the prosecution of criminal cases. Administration includes staff salaries, other staff related expenditure, accommodation and related costs for administrative staff based in CPS Headquarters. Overall the CPS administration outturn was £51 million compared to net provision of £57 million. The underspend of £6 million reflects efficiency savings made during the year by HQ Directors to support the decision of the CPS Board to freeze HQ staff numbers and budgets from 2005-06. The balance comprises the remaining reserves held as a contingency against unforeseen pressures.
Crown prosecutions and legal services cover the direct and indirect costs of taking cases to court. Following the cost of front line staff salaries, most of the expenditure is associated with the costs of the more serious cases, which are heard in the Crown Court and comprise the costs of employing barristers as advocates, reimbursing the costs of prosecution witnesses who attend court, and a number of other less significant costs associated with the prosecution process.
Expenditure on Crown prosecutions and legal services was £565 million compared with provision of £564 million representing a small overspend of £1 million. The overspend is accounted for by an increase in expenditure on counsel fees and witness expenses due in part to increased expenditure on the most complex cases and in part to the introduction of the Very High Cost Case Scheme in July 2006 which has had the effect of bringing forward expenditure during the transition stage. Over £41 million of CPS provision for Programme costs is provided by way of costs awarded against defendants and collected by the magistrates' courts on our behalf and through the collection of receipts in respect of confiscated criminal assets.
Within the overall expenditure position, expenditure on fees paid to counsel was £5 million higher than originally planned for the year as explained above. The additional expenditure was offset by a reduction in expenditure on other areas of the service.
The CPS and DCA use versions of a graduated fee scheme to calculate counsel fees in the majority of Crown Court cases. The concept of broad parity continues to create some upward pressure on the fees the CPS pays for the longer, more complex, cases that have been historically outside the graduated fee scheme. About 40% of Crown Court cases involved indictable-only offences - the most serious cases of all - compared with 33% in 2000-01 and only 18.2% in 1991-92. There are further reasons for the increase in costs. The extension of recovery of criminal assets, the increasing requirements of disclosure, the conclusion of some extremely large cases, terrorism related prosecutions falling out of intensive activity by secret services and the police, and the increased use of information technology have all meant longer and more complex cases.
From October 2005 the graduated fee scheme was extended to include Crown Court cases that had cracked on the day of trial, cases where the defendant gave a guilty plea and cases that were expected to last between 25 and 40 days in court. We have taken further measures, in particular the extension of the deployment of CPS Higher Court Advocates to help us manage these cost pressures.
Capital expenditure in the CPS is focused on improving the Department's estate and office environment and investment in IT through the PFI arrangement with LogicaCMG.
Reconciliation of resource expenditure between Estimates, Accounts and Budgets (£thousands)
Description |
2006-07 |
2005-06 |
|---|---|---|
| Net Resource Outturn (Estimate) | 621,342 |
613,571 |
| Resource Budget (Estimate) | 621,342 |
613,571 |
| Adjustments to additionally include: | ||
| Consolidated Fund Extra Receipts in the OCS | (2,059) |
(1,550) |
| Unallocated Resource | (5,065) |
(11,555) |
| Net Operating Cost (Accounts) | 614,218 |
600,466 |
In all, the Department spent a total of £6 million on the purchase of fixed assets and outturn was £2 million less than the budget. The underspend was caused substantially by some slippage in planned projects for improvements to leasehold properties and the replacement of office equipment pending strategic decisions on a planned reorganisation of the internal structure of CPS Areas to improve support for business delivery and increase resilience.
The Department's net cash requirement outturn was £620 million against an estimate of £622 million. The difference is equivalent to the unspent resource position and the explanation given above also applies here.
During 2006-07 debtors due within one year increased by £6 million from £53 million to £59 million and debtor days decreased from 326 to 234 days. Debtors effectively represent the outstanding value of costs awards due to the CPS that are collected by the magistrates' courts on our behalf. Repayment arrangements agreed with defendants by the courts mean that collection can occur over an extended period of time. The position is exacerbated by the fact that for a period the courts could not write off doubtful debts save for in very exceptional circumstances. The introduction of income in respect of recovered criminal assets under the Proceeds of Crime Act incentivisation scheme has increased the total income for the Department and reduced the proportion accounted for by cost awards.
In the same period creditors reduced from £67 million to £59 million and creditor days showed no material change from 53 days.
Management
Ken Macdonald QC was appointed the Director of Public Prosecutions in November 2003. The Chief Executive supports the Director. The Chief Executive has responsibility for finance, human resources, performance management, IT and business and administrative processes, allowing the Director to concentrate on prosecution and legal processes. Richard Foster was appointed as Chief Executive on 7 January 2002 and left the CPS on 12 January 2007. Peter Lewis was appointed as the new Chief Executive on 15 January 2007. The Remuneration Report provides detail of service contracts and salary and pension entitlements for senior officials of the Department.
CPS Board
The CPS Board supports the Director and Chief Executive. The objectives of the Board are to provide leadership, set direction and review progress. Individual members are corporately responsible for decisions taken by the Board.
During 2006-07 the Board structure remained unchanged with the membership comprising the Director, Chief Executive, the Headquarters' functional Directors, the Director of Equality and Diversity, the CCP for London, three other CCPs and one ABM. The Board meets bi-monthly. The CCP and ABM members are representative of the differing sized Areas and are drawn from a diverse background. Three Non Executive Directors (NEDs) currently sit on the Board. A recent recruitment exercise has replaced two of the 2005-06 NEDs who left after their terms of appointment expired. There were some changes to the individual members during the year, with new members appointed at the invitation of the Director in consultation with the Chief Executive.
During 2006-07 the supporting Committee structure was changed to provide more strategic and focused support to the Board. The total number of supporting Committees was reduced from seven to four, with a single secretariat ensuring greater co-ordination of business between the Board and Committees. The role of the three Board NEDs was strengthened by making them Chairs of some of the new supporting Committees. The effectiveness of the new arrangements and the membership of the Board and Committees will be further assessed in 2007-08.
The members of the CPS Board at 31 March 2007 and their attendance during 2006-07 are as follows:
| Board Member | Title | Attendance | Notes |
|---|---|---|---|
| Ken Macdonald QC | DPP | 4 | |
| Richard Foster/Peter Lewis | Chief Executive | 3 | Richard Foster left the CPS in January 2007 |
| John Graham | Director, Finance | 4 | |
| Philip Geering/Roger Daw | Director, Policy | 5 | Philip Geering left the CPS in December 2006 |
| Peter Lewis | Director, Business Development Directorate | 5 | |
| Steve Przybylski | Director, Business Development Directorate | 1 | Steve Przybylski was appointed Acting Director in January 2007 |
| Claire Hamon | Director, Business Information Systems | 4 | |
| Angela O'Connor/Ros McCool | Director, Human Resources | 4 | Angela O’Connor left the CPS in November 2006 |
| Séamus Taylor | Director of Equality and Diversity | 5 | |
| Dru Sharpling | CCP, London | 1 | |
| Jim England/ | CCP,West Mercia | 1 | Jim England left the CPS in October 2006 |
| Judith Walker | CCP, South Yorkshire | ||
| Neil Franklin | CCP,West Yorkshire | 5 | |
| Portia Ragnauth | CCP, Durham | 5 | |
| Deborah King/ | ABM, Merseyside | 4 | Deborah King left the CPS in January 2007 |
| Adele Clarke | ABM, Northumbria | ||
| Gerard Lemos | Non-Executive Director | 4 | |
| Philip Oliver | Non-Executive Director | 4 | |
| Rob Sykes | Non-Executive Director | 4 | |
| Ursula Brennan | Chief Executive, OCJR | 4 | |
| Matthew McGonagle | Secretariat | 5 |
In April and October each year CCPs, ABMs and key managers in Headquarters meet together at conference to debate strategic issues and key operational problems.
The appointment and termination of staff who are members of the CPS Board, excluding the NEDs who are not employed by the CPS, is undertaken in accordance with the Civil Service Management Code. Where appropriate their remuneration, details of which can be found in the Remuneration Report, is determined by reference to the Senior Salaries Review Body. In the rare event of members holding company directorships or having any significant interests that conflict with their management responsibilities, these are declared and a record kept by the single secretariat. No specific action was required at Board level due to a declaration of interest in 2006-07.
The role of the Board is to:
- Provide leadership and strategic direction, taking key strategic decisions in driving forward CPS delivery and reform;
- Agree, lead and drive change to deliver the Service's business strategy;
- Build organisational capacity through effective use of our people, resources and information technology;
- Set standards and values for independence, impartiality and fairness, equality of opportunity and diversity;
- Ensure the Service delivers high quality casework and advocacy;
- Promote a culture of openness, transparency and continuous improvement;
- Mainstream equality and diversity in all CPS business;
- Deliver the CPS contribution to PSA and other Government targets and objectives;
- Build effective partnerships with CJS Departments and agencies to make the maximum contribution to CJS delivery and reform;
- Safeguard and enhance the Service's reputation; and
- Ensure a proper framework for effective corporate governance.
Examples of business covered by the Board include:
- CSR 2007 bid and supporting vision;
- Business Strategy for 2007-08;
- Restructuring proposals;
- Response to CPS Staff Survey; and
- Financial performance and change programme.
The Board is now supported by four Committees that were introduced in October 2006. This change follows a review of the governance structures, in line with good practice, at the end of 2005-06. The new Committees are responsible for managing key strategic issues delegated to them by the Board and assuring the Board about the delivery of those issues. The four new Committees are:
Strategy, Policy & Diversity Committee (SPDC)
The SPDC determines the Service's overall vision and strategic direction and develops prosecution policies to deliver that vision whilst integrating all aspects of equality and diversity.
Work undertaken
- Developed CPS Vision to support CSR 2007 period and make proposals to the Board;
- Approved Policy Directorate work programme and Business Plan for 2007-08; and
- Approved Equality & Diversity Unit work programme and Business Plan for 2007-08.
Members of the Strategy, Policy and Diversity Committee:
| SPDC Members | Position/Role | Attendance (out of 3 meetings) | Notes |
|---|---|---|---|
| Philip Oliver | NED (Chair) | 3 | |
| Roger Daw/ | Director/Assistant | 3 | Roger Daw appointed in January 2007 |
| Joanna Morris | Director, Policy | Joanna Morris attended prior to appointment | |
| Elizabeth Howe | CCP, Kent | 3 | |
| Charles Ingham | CCP, Hertfordshire | 1 | Also member of Professional Standards & Ethics Group |
| Matthew McGonagle | Strategy, Planning & Change | 3 | |
| Alison Saunders | Head of Organised Crime Division | 2 | |
| Séamus Taylor | Director of EDU | 3 | |
| Chris Woolley | CCP, South Wales | 2 |
Delivery & Change Committee (DCC)
The DCC manages the Service's change programme to ensure the delivery of PSA and other targets; reviews and revises the existing change programme in order to integrate new legislative, policy or delivery objectives; and monitors progress so that it becomes 'business as usual'. The DCC retains some continuity from the previous Committee structure which also had a Delivery & Change Committee, in terms of membership and some responsibilities.
Work undertaken
- Approved 2007-08 Change Programme and performance targets;
- Approved management of risk approach;
- Developed approach to benefits management (ongoing); and
- Provided strategic steer to key programmes and projects including developing model administrative processes, advocacy and restructuring.
Members of the Delivery & Change Committee
| DCC Members | Position/Role | Attendance (out of 2 meetings) | Notes |
|---|---|---|---|
| Gerard Lemos | NED (Chair) | 2 | |
| Jean Ashton | ABM Greater Manchester | 2 | |
| John Graham | Director, Finance | 2 | |
| Claire Hamon | Director, Business Information Systems | 0 | |
| Nick Hawkins | CCP, Hampshire &Isle of Wight | 2 | Also member of Professional Standards & Ethics Group |
| Steve Przybylski/ | Acting Director/ | 2 | |
| Peter Lewis | Director, Business Development | Peter Lewis became Chief Executive in January 2007 | |
| Clare Toogood | Sector Business Manager, London South | 2 | |
| Judith Walker | CCP, South Yorkshire | 2 |
Gail Lamb (Centre of Excellence), Matthew McGonagle (Strategy, Planning & Change) and Pam Teare (Communications) also attend and advise the Committee, but are not members.
People, Equality & Resources Committee (PERC)
The PERC ensures that the CPS has the capacity and capability to deliver the agreed business strategy, by allocating resources and agreeing supporting strategies for people, equalities, finance and ICT; and ensuring that these supporting strategies maximise efficiencies, deliver value for money and enable the business strategy and PSA targets to be achieved against a background of increasing resource pressure.
Work undertaken
- Developed workforce strategy to support CSR2007 settlement (ongoing);
- Approved 2007-08 resource allocations; and
- Approved actions arising from Equality & Diversity in Employment Inspection.
Members of the People, Equality & Resources Committee
| PERC Members | Position/Role | Attendance (out of 2 meetings) | Notes |
|---|---|---|---|
| Peter Lewis/Richard Foster | Chief Executive (Chair) | 2 | |
| Lesley Burton | ABM, London | 1 | |
| John Graham | Director, Finance | 2 | |
| Claire Hamon | Director, Business Information Systems | 1 | |
| Ros McCool/Lesley Watt | Director/Deputy Director, Human Resources | 2 | Ros McCool appointed in January 2007 |
| Philip Oliver | NED | 2 | |
| Steve Przybylski/Peter Lewis | Acting Director/Director, Business Development | 1 | Peter Lewis became Chief Executive in January 2007 |
| Baljit Ubhey | CCP, Thames Valley | 1 |
Audit Committee (AC)
The AC provides objective advice, support and assurance to the Accounting Officer and CPS Board on CPS corporate governance, risk management and internal control systems and on the activity and findings of the External Auditors. The AC's role and responsibilities remained unchanged throughout the year.
Members of the Audit Committee
| AC Members | Position/Role | Attendance (out of 4 meetings) | Notes |
|---|---|---|---|
| Anjali Arya/Rob Sykes | NED (Chair) | 3 | Rob Sykes became Chair in October 2006 |
| Baljit Ubhey | CCP, Thames Valley | 3 (out of 3) | Baljit Ubhey left the Committee after the October meeting. |
| Linda Fox | ABM, Hertfordshire | 4 | |
| David Judd | NED | 4 | |
| Paula Abrahams | CCP, Essex | 1 (out of 1) | Paula Abrahams was appointed in February 2007 |
| Peter Lewis | Director, Business Development | 0 (out of 3) | Peter Lewis left the Committee after being appointed Chief Executive in January 2007. |
John Graham (Director, Finance), Robert Lee (Head of Internal Audit) and Tom Breen (Risk Management Principal Advisor) also attend and advise the Committee, but are not members.
Work undertaken
- Monitored and provided direction to Internal Audit and approved the Head of Internal Audit's Annual Report to Accounting Officers and CPS Board;
- Approved the Statement of Internal Control and Annual Resource Accounts;
- Reviewed NAO observations on annual accounts and oversaw internal/external audit co-operation for 2007-08; and
- Reviewed risk management and corporate governance approaches.
Former Committees
The new Committee structure replaced the previous seven Committees. A summary of the roles of the previous Committees is included below. The Audit Committee remained unchanged.
Delivery & Change
The role was to provide assurance to the CPS Board that the Service built effective partnerships in the CJS to deliver PSA and other targets and that the Service’s overall change programme delivered the CPS business strategy. This Committee was reconstituted to form the new Delivery & Change Committee outlined above.
Finance
The role was to support the Board on the effective use of resources to deliver the Service's business strategy and PSA targets and to develop a culture of continuous operational improvement. The preparation of financial reports to the CPS Board, management of financial risk and the delivery of the CPS Efficiency Plan are now the responsibility of the PERC. The Finance Committee has been temporarily retained as a sub-Committee of the PERC to prepare the allocation of resources for 2007-08 for approval.
People and Equality
The role was to provide assurance to the CPS Board that the people strategies and policies support delivery of the business strategy and PSA targets and setting standards and values for impartiality, fairness, equality of opportunity and diversity. The Committee has been disbanded and the strategic issues such as workforce strategy and delivery of the Equality & Diversity Strategy are the responsibility of the PERC.
Information and Communication Technology (ICT)
The role was to provide assurance to the CPS Board that ICT strategies and policies support delivery of the business strategy and PSA targets; provides value for money; and makes the maximum contribution to joined-up IT across the CJS. This Committee has been disbanded and strategic issues such as the ISIT Strategy are the responsibility of the PERC.
Professional Standards
The role was to provide assurance to the CPS Board that the CPS is delivering independent, high quality casework and advocacy. This Committee has been disbanded. A Professional Standards and Ethics Group which reports directly to the Director has been introduced to provide advice on the professional and ethical considerations arising from the delivery of CPS and governmental priorities.
Policy, Strategy & Diversity
The role was to support the CPS Board on leadership, strategic direction and the corporate business strategy. This Committee has been disbanded and the strategic issues such as CPS Vision are the responsibility of the SPDC.
Pensions
The Accounting Policy Note 1.8 describes the CPS policy on how pension liabilities are treated and the accounting treatment is detailed in Note 8 and in the Remuneration Report.
Equal Opportunities
The CPS has a strong commitment and increasingly positive reputation on equal opportunities. The Service reviewed and refreshed its policy commitments on equal opportunities in 2005 and in its refined policy statement states:
'We are committed to taking account of the diversity of the population we serve and the staff we employ, promoting equality and opportunity for everyone. The Service recognises the challenge of institutional discrimination. We will work to eradicate it. We will work to ensure that prosecution decisions are free from bias or discrimination and that victims, witnesses and defendants are treated fairly, consistently and with respect. We will provide services in a manner that is appropriate to the individual. We are committed to achieving equality and respecting diversity in employment. We will work to build an inclusive workforce, which at all levels, reflects the communities we serve, where all staff are motivated and with no unjustifiable differences in employees' experiences.'
An Equal and Diverse Prosecution Service
The CPS has moved into a second phase in its work to further equality and diversity - it has moved on from a focus on raising awareness of the issues to a focus on outcomes. From April 2005 onwards the Service introduced equalities outcome measures into its performance review system and reports on achievements on a quarterly basis. The Service strives to improve its reputation on equality and diversity issues and in the past year its work has been positively recognised through a Commission For Racial Equality - Law Society Award for best large public sector employer of solicitors on race equality.
The CPS is committed to further progress on equality and diversity in employment and has put a Diversity Delivery Plan in place which sets out what we will do to achieve senior workforce representation targets by 2008.
Employee Consultation and Providing Information to Employees
The CPS has continued in its strategy of communicating to staff both formally and informally. The main focus for the promulgation of business information is via a newsletter "Inform" which is published weekly, in an online format. This information is supplemented by a monthly publication of CPS News, which also goes to an audience beyond the CPS. Some Areas and HQ Directorates produce similar publications providing staff with news and information from a more local perspective.
Staff are informed about items of change via team meetings and by newsletters circulated by individual project owners. Informal and formal consultations take place with the Trade Unions over changes that will affect staff. The Human Resources Directorate also keep the unions informed of HR policy changes and other initiatives that may impact upon their members.
The CPS intranet home page provides a portal to a number of themed areas as well as an online bulletin board, which is used to discuss a variety of business and social subjects.
Other business information is provided both on the intranet and in paper format. Documents such as the Personnel Management Manual, provide information on HR Policy procedures and are maintained in both formats, but are gradually being replaced by a series of booklets and online guides, which are published as policy is reviewed. Other manuals and standard forms are also published on the intranet together with a specialist micro site for the INVEST programme which is a comprehensive performance management and development initiative.
Payment of Suppliers and Witnesses
The CPS is committed to paying bills in accordance with agreed contractual conditions, or, where no such conditions exist, within 30 days of receipt of goods or services or the presentation of a valid invoice, whichever is the later. The CPS also seeks to pay all expenses to prosecution witnesses within 5 working days of receipt of a correctly completed claim form.
In 2006-07 the CPS settled 90.55% of undisputed invoices within 30 days of receipt and 91.52% of witness claims within 5 days. The CPS paid £435.69 with respect to interest due under the Late Payment of Commercial Debts (Interest) Act 1998.
Auditors
This year's Resource Accounts have been audited by the National Audit Office on behalf of the Comptroller and Auditor General. No further audit services were received aside from that of statutory audit.
The cost of audit work was £87,000, which is solely related to audit services and is a notional cost (see Note 10).
As far as the Accounting Officer is aware, there is no relevant audit information of which the National Audit Office are unaware, and the Accounting Officer has taken all the steps that he ought to have taken to make himself aware of any relevant audit information and to establish that the entity's auditors are aware of that information.
Ken Macdonald QC
Accounting Officer
9 July 2007
Statement of Accounting Officer's Responsibilities
Under the Government Resources and Accounts Act 2000, HM Treasury has directed the Crown Prosecution Service to prepare for each financial year resource accounts detailing the resources acquired, held or disposed of during the year and the use of resources by the department during the year. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the Crown Prosecution Service and of its net resource outturn, resources applied to objectives, recognised gains and losses and cash flows for the financial year.
In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:
- observe the Accounts Direction issued by HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;
- make judgements and estimates on a reasonable basis;
- state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the accounts; and
- prepare the accounts on a going concern basis.
HM Treasury has appointed the Director of Public Prosecutions as Accounting Officer of the department, and the Chief Executive as an Additional Accounting Officer, with responsibility for preparing the department's accounts and for transmitting them to the Comptroller and Auditor General. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding the department's assets, are set out in the Accounting Officers' Memorandum issued by HM Treasury and published in Government Accounting.
Statement on Internal Control
Scope of responsibility
As Accounting Officer, I have responsibility for maintaining a sound system of internal control that supports the achievement of CPS policies, aims and objectives, whilst safeguarding the public funds and departmental assets for which I am personally responsible, in accordance with the responsibilities assigned to me in Government Accounting.
I am supported in managing the CPS and its key risks by a Chief Executive as additional Accounting Officer, the CPS Board, four Board committees and six Headquarters Directors. The CPS is organised into geographical Areas each headed by a Chief Crown Prosecutor with a direct line of accountability to me for legal decisions and casework, and, in the first instance, to the Chief Executive for the delivery of CPS objectives and PSA targets, and for managing local risks.
The CPS is an independent part of the criminal justice system under the ministerial superintendence of the Attorney General. I regularly meet the Attorney General to discuss progress, the issues and the risks of key criminal justice policy initiatives.
The purpose of the system of internal control
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of departmental policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in CPS for the year ended 31 March 2007 and up to the date of approval of the annual report and accounts, and accords with HM Treasury guidance.
Capacity to handle risk
The CPS Board is responsible for ensuring that appropriate risk management arrangements exist and for ensuring that corporate risks are properly managed. The Delivery and Change Committee assists the Board. The role of the Delivery and Change Committee is to monitor the progress and effectiveness of all major business change projects and the implementation of the Service's risk management development programme, and to consider regular reports on the management of key corporate risks.
A Board level Risk Management Champion, and a Risk Improvement Manager who is responsible for advising on embedding risk management across the Service, supported the Board during 2006-07 and provided update reports to the Board, the Delivery and Change Committee and the Audit Committee.
Board level involvement in identifying, assessing and reviewing the progress of management of corporate risks is provided by the Board members sitting on the Delivery and Change Committee. The Board also approved the CPS corporate risk tolerance - the amount of risk the Department is prepared to carry.
All corporate risk owners are Board members.
With the Chief Executive, I personally take part in a quarterly round of performance review meetings with Areas. The frequency of review is determined by a risk based assessment. These include consideration of any key challenges or risks across 15 key indicators and business change projects plus a range of occasional thematic topics, which includes local risk management arrangements. In 2006-07 Area procedures for identifying and assessing their business risks were assessed for 33 Areas. A similar process for Headquarters Directorates was also trialled in the year.
The CPS risk management framework is contained in a written policy statement and a practical risk management guide. These are continuously reviewed to ensure they reflect current HM Treasury and Office of Government Commerce standards.
Risk management guidance is provided at the start of each business planning round. In 2006-07, the Service promoted risk training for all senior managers and delivered full risk training days and/or risk awareness seminars to 5 Areas and 5 HQ Directorates. The CPS Centre of Excellence also supports training focused on managing business change risks.
Support and best practice guidance is available from the Risk Improvement Manager, the Centre of Excellence and a network of 5 Area Business Manager mentors, allowing Areas access to practical help and advice on managing their risks. In June 2006, the range of risk guidance and support available electronically was extended and further integrated with other business and delivery skills that included planning, change, and programme & project management guidance within the new departmental 'Infonet'.
The risk and control framework
All risk management activity is aligned to the corporate aims, objectives, priorities and PSA commitments. Risk Management is applied to strategic corporate risks, Area operational and business risks and key business change programmes. For 2006-07 the focus for corporate and Area risks was the delivery of the PSA targets and the strategic business changes that underpin effective delivery. The priority corporate risk areas were:
- change management arrangements and the effective delivery of business benefits and efficiency gains;
- maintaining capability to deliver quality core business;
- strategic management capacity and capability required to sustain delivery of the PSA targets and business change commitments;
- partnership or key stakeholder performance or relations (de-escalated from the corporate risk register November 2006);
- development and anticipation of changes to government criminal justice policy;
- the impact on reputation from adverse publicity in high profile cases;
- the impact on PSA targets and business change commitments of Area restructuring (added November 2006); and
- efficiency delivery and funding constraint effects on service delivery and public confidence (added November 2006).
Risk identification and analysis is linked to departmental strategic planning, business planning and investment/project appraisal procedures. Corporate, Area and HQ Directorate Business plans are constructed in tandem with the relevant risk registers. Corporate and operational business risk owners are responsible for ensuring proper review and re-assessment of the level of risk. For the corporate risks, the Delivery and Change Committee is responsible for identifying the risks to be managed corporately and updating the corporate risk register at formal quarterly reviews.
The CPS Board receives quarterly performance and risk highlight reports, and separate reports of any risks escalated by the Delivery and Change Committee as not being managed effectively. No corporate risks were escalated to the Board in 2006-07.
On behalf of the Board, the Delivery and Change Committee oversees the portfolio of business change projects to consider the level of risk assumed, and advises on the balance of risk and potential benefits of new projects. Our corporate risk management process has highlighted the need for more structured analysis of risk, cost and benefits, and work to develop this is continuing into 2007-08.
In 2006-07 the Board and the Delivery and Change Committee fully met their programmed corporate risk identification and review commitments and their governance role in overseeing work of the programme boards responsible for the key business changes, including the progress of managing the associated key risks and issues. I am satisfied that the necessary risk management actions were addressed properly at operational and project level.
Managers and staff at all levels have a responsibility to identify, evaluate, manage or report risks. I, together with the Chief Executive and the Board encourage innovation and taking opportunities to further the interests of the CPS and the achievement of its objectives. The Board has set the CPS risk tolerance range, and the acceptable parameters for risk taking by managers are outlined in the CPS risk policy and guidance documents.
The Board requires Areas and HQ Directorates to maintain:
- a risk register detailing priority by likelihood and impact and showing ownership;
- a risk management action plan; and
- evidence of regular review and monitoring.
All Area risk registers were reviewed at the start of the year, and the majority re-assessed in the year as part of the Area Performance Review process to identify trends and common themes. No issues were escalated to the corporate risk register.
The CPS capacity to handle risk is under continuing review by the Delivery and Change and Audit Committees. The Risk Improvement Manager provides half yearly reports on progress against the CPS risk management development strategy. The CPS risk handling capacity was also reviewed formally in the year to inform the report on progress of the government's risk management development programme to the Permanent Secretaries Management Group sub-committee on risk. In the year the Delivery and Change Committee considered and agreed to revise down the risk management development strategy targets to deliver a significant integration of risk management into CPS business by the end of 2008-09. The key areas for development and improvement remain:
- deeper embedding of risk – we are addressing this by promoting corporate risk owner involvement in reviewing and updating risks; developing electronic awareness, support and guidance material on the departmental Infonet; Risk Improvement Manager quality assurance and promotional visits to operational managers and HQ Directors; the delivery of formal risk training sessions and risk awareness development seminars; providing detailed written feedback reports on request; and providing new summary best practice guidance;
- demonstrating improved risk handling and better delivery of planned outcomes – we are addressing this by integrated review of risk management and performance in quarterly Area performance review, and regular monitoring by CPS Board, Audit Committee and the Delivery and Change Committee; and
- managing risks with partners – we are addressing this by working with the Office of Criminal Justice Reform on risks to the delivery of criminal justice PSA targets, and Criminal Justice Information Technology programme on risks to the development of joint information and communications technology; and establishing a criminal justice system risk management forum.
I am satisfied that, although we could improve the application of our risk management framework, our risk management arrangements meet the necessary governance standards.
Review of effectiveness
As Accounting Officer, I have responsibility for reviewing the effectiveness of the system of internal control. My review of the effectiveness of the system of internal control is informed by the work of the internal auditors and the executive managers within the department who have responsibility for the development and maintenance of the internal control framework, and comments made by the external auditors in their management letter and other reports. I have been advised on the implications of the result of my review of the effectiveness of the system of internal control by the Board, the Audit Committee and the Delivery and Change Committee, and a plan to address weaknesses and ensure continuous improvement of the system is in place.
In the year, we implemented the recommendations of the annual review of corporate governance required by the Corporate Governance Code of Practice. The next review is planned for mid 2007- 08. A new Board committee structure now operates with clearer responsibility and strategic oversight in the functional areas key to good internal control. There are clear lines of accountability between the Board and committees, and the committees report regularly to the Board. One of three Non-Executive Directors chairs or sits on each (the People, Equality and Resources Committee is chaired by the Chief Executive). The Board committees are:
- Strategy, Policy and Diversity – to determine the Service's overall vision and strategic direction, and develop prosecution policies that integrate all aspects of equality and diversity;
- People, Equality and Resources – to guide the development and deployment of CPS human, financial and material resources to ensure that we have the capacity and capability, and obtain value for money in implementing the agreed business strategy and service delivery commitments;
- Delivery and Change – to determine, prioritise and oversee the implementation of a change programme that ensures delivery of Public Service Agreement and other key targets; and
- Audit – to provide objective advice, support and assurance to the Accounting Officer and additional Accounting Officer on corporate governance, risk management, the system of internal control and external audit reports.
The department has an internal audit function that operates to the 'Government Internal Audit Standards' guidance. They submit regular reports to the Audit Committee, including a report from the Head of Internal Audit that provides an independent opinion on the adequacy and effectiveness of the department's system of internal control and includes recommendations for improvement to the systems of internal control.
In accordance with the Code of Good Practice on Corporate Governance, the Audit Committee has prepared an annual report on the work of discharging its responsibilities.
At the end of the calendar year each Chief Crown Prosecutor and HQ Director completes a certificate of assurance. The certificates include a statement on the level of assurance achieved throughout the year by the Area/Directorate against key aspects of their business. They specifically provide an assurance on the effectiveness of local systems to identify and manage the principal risks to the delivery of the Public Service Agreement targets. All certificates are validated against HM Crown Prosecution Service Inspectorate reports and other performance information.
Our quarterly performance review programme with Area Chief Crown Prosecutors and Business Managers (detailed in the Capacity to handle risk section) is a key part of monitoring effectiveness of the system of internal control. Resulting action plans for performance improvement are agreed with me, the Chief Executive and the Director of Business Development.
Independent review of business efficiency and effectiveness in the Areas is carried out by HM Crown Prosecution Service Inspectorate. In 2006-07 they undertook a programme that included Area effectiveness inspections, and thematic reviews of the national case management system and equality and diversity in employment. HM Crown Prosecution Service Inspectorate also carries out joint thematic inspections with other independent Criminal Justice inspectorates.
Significant internal control issues
I have no significant internal control issues to report for 2006-07 and all previously reported issues have been cleared.
Ken Macdonald QC
Accounting Officer
9 July 2007
The Certificate and Report of the Comptroller and Auditor General to the House of Commons
I certify that I have audited the financial statements of the Crown Prosecution Service for the year ended 31 March 2007 under the Government Resources and Accounts Act 2000. These comprise the Statement of Parliamentary Supply, the Operating Cost Statement and Statement of Recognised Gains and Losses, the Balance Sheet, the Cashflow Statement and the Statement of Operating Costs by Departmental Aim and Objectives and the related notes. These financial statements have been prepared under the accounting policies set out within them. I have also audited the information in the Remuneration Report that is described in that report as having been audited.
Respective responsibilities of the Accounting Officer and auditor
The Accounting Officer is responsible for preparing the Annual Report, which includes the Remuneration Report, and the financial statements in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions made thereunder and for ensuring the regularity of financial transactions. These responsibilities are set out in the Statement of Accounting Officer's Responsibilities.
My responsibility is to audit the financial statements and the part of the Remuneration Report to be audited in accordance with relevant legal and regulatory requirements, and with International Standards on Auditing (UK and Ireland).
I report to you my opinion as to whether the financial statements give a true and fair view and whether the financial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000. I report to you whether, in my opinion, certain information given in the Annual Report, which comprises the Management Commentary, is consistent with the financial statements.
I also report whether in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
In addition, I report to you if the Department has not kept proper accounting records, if I have not received all the information and explanations I require for my audit, or if information specified by HM Treasury regarding remuneration and other transactions is not disclosed.
I review whether the Statement on Internal Control reflects the Department's compliance with HM Treasury's guidance, and I report if it does not. I am not required to consider whether this statement covers all risks and controls, or to form an opinion on the effectiveness of the Department's corporate governance procedures or its risk and control procedures.
I read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. I consider the implications for my certificate if I become aware of any apparent misstatements or material inconsistencies with the financial statements. My responsibilities do not extend to any other information.
Basis of audit opinion
I conducted my audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. My audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of financial transactions included in the financial statements and the part of the Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgments made by the Accounting Officer in the preparation of the financial statements, and of whether the accounting policies are most appropriate to the Department's circumstances, consistently applied and adequately disclosed.
I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements and the part of the Remuneration Report to be audited are free from material misstatement, whether caused by fraud or error, and that in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. In forming my opinion I also evaluated the overall adequacy of the presentation of information in the financial statements and the part of the Remuneration Report to be audited.
Opinions
Audit Opinion
In my opinion:
- the financial statements give a true and fair view, in accordance with the Government Resources and Accounts Act 2000 and directions made thereunder by HM Treasury, of the state of the Department's affairs as at 31 March 2007 and the net cash requirement, net resource outturn, net operating cost, operating costs applied to objectives, recognised gains and losses and cashflows for the year then ended;
- the financial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000; and
- information given within the Annual Report, which comprises the Management Commentary, is consistent with the financial statements.
Audit Opinion on Regularity
In my opinion, in all material respects, the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
Report
I have no observations to make on these financial statements.
John Bourn
Comptroller and Auditor General
11 July 2007
National Audit Office
157-197 Buckingham Palace Road, Victoria, London SW1W 9SP
Statement of Parliamentary Supply
Summary of Resource Outturn 2006-07 (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
| Description | Note |
Gross expenditure |
A in A |
Estimate Net Total |
Gross expenditure |
A in A |
Outturn Net Total |
2006-07 Net total outturn compared with Estimate: saving/ (excess) |
2005-06 outturn Net Total |
|---|---|---|---|---|---|---|---|---|---|
| Request for resources 1 | 2 |
666,669 |
45,327 |
621,342 |
661,604 |
45,327 |
616,277 |
5,065 |
602,016 |
| Total resources | 3 |
666,669 |
45,327 |
621,342 |
661,604 |
45,327 |
616,277 |
5,065 |
602,016 |
| Non-operating cost A in A | 5 |
- |
- |
- |
- |
- |
- |
- |
- |
Net cash requirement 2006-07 (£Thousands)
| Description | Note |
Estimate | Outturn | 2006-07 Net total outturn compared with Estimate: saving/(excess) |
2005-06 Outturn |
|---|---|---|---|---|---|
| Net cash requirement | 4 |
621,880 |
619,885 |
1,995 |
611,367 |
Summary of income payable to the Consolidated Fund
In addition to appropriations in aid, the following income relates to the Department and is payable to the Consolidated Fund (£Thousands)
| Description | Note |
2006-07 Forecast - Income |
2006-07 Receipts |
2006-07 Outturn Income |
2006-07 Receipts |
|---|---|---|---|---|---|
| Total | 5 |
- |
- |
2,059 |
2,684 |
Explanations of variances between Estimate and outturn are given in Note 2 and in the Management Commentary.
The notes form part of these accounts
Operating Cost Statement for the year ended 31 March 2007 (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
| Description | Note | Staff Costs | Other Costs | Income | 2006-07 | 2005-06 |
|---|---|---|---|---|---|---|
| Administration Costs: | ||||||
| Staff costs | 8 | 30,146 | 29,837 | |||
| Other administration costs | 9 | 21,474 | 23,808 | |||
| Operating income | 11 | (313) | (146) | |||
| Programme Costs | ||||||
| Staff costs | 8 | 318,019 | 299,004 | |||
| Other programme costs | 10 | 291,965 | 285,594 | |||
| Less: income | 11 | (47,073) | (37,631) | |||
| Totals | 348,165 | 313,439 | (47,386) | 600,466 | ||
| Net operating cost | 3 | 614,218 | 600,466 | |||
| Net resource outturn | 4 | 616,277 | 602,016 |
Statement of Recognised Gains and Losses for the year ended 31 March 2007 (£Thousands)
| Description | Note | 2006-07 | 2005-06 |
|---|---|---|---|
| Net gain on revaluation of tangible fixed assets | 19 | 788 | 576 |
| Recognised gains for the financial year | 788 | 576 |
The notes form part of these accounts
Balance Sheet
Balance Sheet as at 31 March 2007 (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
| Description | Note |
2007 Column 1 |
2007 Column 2 |
2006 Column 1 |
2006Column 2 |
|---|---|---|---|---|---|
| Fixed assets: | |||||
| Tangible assets | 12 |
27,753 |
25,923 |
||
| Intangible assets | 13 |
860 |
946 |
||
| Debtors falling due after more than one year | 14 |
3,194 |
3,864 |
||
| Current assets: | |||||
| Debtors | 14 |
58,789 |
52,551 |
||
| Cash at bank and in hand | 15 |
4,080 |
14,543 |
||
62,869 |
67,094 |
||||
| Creditors (amounts falling due within one year) | 16 |
(59,239) |
(66,931) |
||
| Net current assets | 3,630 |
163 |
|||
| Total assets less current liabilities | 35,437 |
30,896 |
|||
| Provisions for liabilities and charges | 17 |
(9,419) |
(10,231) |
||
26,018 |
20,665 |
||||
| Taxpayers’ equity: | |||||
| General fund | 18 |
21,005 |
16,403 |
||
| Revaluation reserve | 19 |
5,013 |
4,262 |
||
26,018 |
20,665 |
Ken Macdonald QC
Accounting Officer
9 July 2007
The Accounting Officer authorised the financial statements for issue on 17 July 2007
The notes form part of these accounts
Cash Flow Statement
Cash Flow Statement for the year ended 31 March 2007 (£Thousands)
Description |
Note |
2006-07 |
2005-06 |
|---|---|---|---|
| Net cash outflow from operating activities | 20(a) |
(612,439) |
(605,178) |
| Capital expenditure and financial investment | 20(b) |
(4,761) |
(3,296) |
| Payments of amounts due to the Consolidated Fund | (3,290) |
(5,175) |
|
| Financing | 20(d) |
610,027 |
602,577 |
| (Decrease) in cash in the period | 20(e) |
(10,463) |
(11,072) |
Statement of Operating Costs by Departmental Aim and Objective
Statement of Operating Costs by Departmental Aim and Objective for the year ended 31 March 2007
Aim:
To deliver a high quality prosecution service that brings offenders to justice, helps reduce both crime and the fear of crime and thereby promotes public confidence in the rule of law, through the consistent, fair and independent review of cases and through their fair, thorough and firm presentation at court. (£Thousands)
| Description | 2006-07 Gross | 2006-07 Income | 2006-07 Net | 2005-06 Gross | 2005-06 Income | 2005-06 Net |
|---|---|---|---|---|---|---|
| Objective | 661,604 | (47,386) | 614,218 | 638,243 | (37,777) | 600,466 |
| Net operating costs | 661,604 | (47,386) | 614,218 | 638,243 | (37,777) | 600,466 |
The Department's objective was as follows: To ensure the effective delivery of justice. See Note 21
The notes form part of these accounts
Notes to the departmental Resource Accounts
1. Statement of Accounting Policies
The financial statements have been prepared in accordance with the 2006-07 Government Financial Reporting Manual (FReM) issued by HM Treasury. The accounting policies contained in the FReM follow UK generally accepted accounting practice for companies (UK GAAP) to the extent that it is meaningful and appropriate to the public sector.
In addition to the primary statements prepared under UK GAAP, the FReM also requires the Department to prepare two additional primary statements. The Statement of Parliamentary Supply and supporting notes show outturn against Estimate in terms of the net resource requirement and the net cash requirement. The Statement of Operating Costs by Departmental Aim and Objective and supporting notes analyse the Department's income and expenditure by the objectives agreed with Ministers.
Where the FReM permits a choice of accounting policy, the accounting policy which has been judged to be the most appropriate to the particular circumstances of the Department for the purpose of giving a true and fair view has been selected. The Department's accounting policies have been applied consistently in dealing with items considered material in relation to the accounts.
1.1 Accounting Convention
These accounts have been prepared under the historical cost convention modified to account for the revaluation of fixed assets at their value to the business by reference to their current costs.
1.2 Basis of Consolidation
The CPS has no agencies or other bodies that may form part of a CPS departmental group.
1.3 Fixed Assets
Tangible Fixed Assets
Tangible fixed assets are stated at the lower of replacement cost and recoverable amount. With effect from 1 April 2002 all expenditure on tangible fixed assets of £500 or over is capitalised. From 1 April 2004 this includes leasehold improvements. On initial recognition they are measured at cost including any costs such as installation directly attributable to bringing them into working condition.
All tangible fixed assets are restated to current value each year. Land and buildings are restated to current value using professional valuations in accordance with FRS15 every five years and in the intervening years by the use of published indices appropriate to the type of land or building. The Investment Property Databank supplies the indices used.
Title to the freehold land and buildings shown in the accounts is held as follows:
- property on the departmental estate, title to which is held by the CPS; and
- property held by the Department of Environment, Food and Rural Affairs in the name of the Secretary of State.
Other tangible fixed assets are restated to current value annually by indexation up to the year-end using Price Index Numbers for Current Cost Accounting, published by the Office for National Statistics.
Costs of bought-in services incurred in preparation for the implementation of IT projects are capitalised. Internal costs incurred on the same projects are not capitalised where the work can only be carried out by in-house staff.
Intangible Fixed Assets
Most software licences used in the business are paid for on an annual basis and their cost is charged to the Operating Cost Statement over the period to which the licences relate. However, the CPS has purchased certain licences for use over an extended period of time. These have been capitalised as intangible fixed assets, following the same conventions and principles as those applied to tangible fixed assets.
1.4 Depreciation
Tangible Fixed Assets
Tangible fixed assets are depreciated at rates calculated to write them down to estimated residual value on a straight-line basis over their estimated useful lives. No depreciation is provided on freehold land since it has an unlimited useful life. Asset lives are normally in the following ranges:
- Freehold buildings: 20 to 50 years
- Furniture and fittings: 3 to 10 years
- Information technology: 4 years
- Transport equipment: 3 to 5 years
Leasehold improvements are written off over the shorter of:
- the remaining life of the property lease;
- 10 years; or
- where it has been established that a break clause in the lease is likely to be exercised by the Department, the period to the first possible date of exercise of the relevant break clause.
Intangible Fixed Assets
Intangible fixed assets are depreciated at rates calculated to write them down to estimated residual value on a straight-line basis over their estimated useful lives, which are considered to be co-terminous with the Department’s ICT managed service contract (see Note 24).
1.5 Operating Income
Operating income is income which relates directly to the operating activities of the Department, and consists of administration and programme income. It includes not only income appropriated in aid of the Estimate but also income to the Consolidated Fund, which in accordance with FReM is treated as operating income. Operating income is stated net of VAT.
Administration Income
Administration income is income associated with support to front-line functions. This relates to the recovery of salaries for staff seconded to other Government Departments or Local Criminal Justice Boards and reimbursement of expenditure under the Government's Access to Work and New Deal schemes. It includes not only income appropriated in aid of the Estimate but also income due to the Consolidated Fund, which in accordance with the FReM is treated as operating income.
Programme Income
Programme income is direct income associated with delivery of front-line functions. The principal element relates to costs awarded to the CPS. The CPS receives awards of costs made against convicted defendants at the discretion of the judge or magistrates. Magistrates' courts are responsible for recording, enforcing and collecting these costs, forwarding collected monies to the CPS and, under delegated authority, for writing off awards where the amount outstanding is less than £100.
Bad debts are provided for as a percentage of programme debtors.
In order to account for cost awards, the CPS uses returns submitted by the courts in respect of cash collected, transfers to and from other courts, amounts written off and cost awards outstanding. The costs reflect the cost of the prosecution but for administrative purposes are recorded against programme costs only. Cost award income is included in the objective in the Statement of Resources by Departmental Aim and Objectives.
Programme income also includes rental income from other Government Departments in jointly occupied buildings, commercial sub-tenants and Non Departmental Public Bodies; but it also includes other income such as recovery of salaries for staff seconded to other Government Departments or Local Criminal Justice Boards, Home Office payments made for recovered assets from cash forfeitures and confiscation receipts and reimbursement of expenditure under the Government's Access to Work and New Deal schemes. Rental income received from other Government Departments is netted off against expenditure in accordance with FReM.
1.6 Administration and Programme Expenditure
The Operating Cost Statement is analysed between administration and programme income and expenditure. The classification of expenditure and income as administration or as programme follows the definition of administration costs set out in the Consolidated Budgeting guidance issued by HM Treasury. Costs are stated inclusive of VAT.
Administration Costs
Administration costs reflect the costs of running the Department. These include both administrative costs and associated operating income. Income is analysed in the notes between that which, under the administrative cost-control regime, is allowed to be offset against gross administrative costs in determining the outturn against the administration cost limit, and that operating income which is not.
Programme Costs
Programme costs reflect non-administration costs being the direct cost and associated overheads of prosecution including the employment of counsel and compensation paid to witnesses for costs incurred through their attendance at court. Where a prosecution case is expected to last 40 days or less, payments are made to counsel using a set fee structure, with a target of payment within 20 days of receipt of a valid claim. Cases expected to last in excess of 40 days (or where three trial counsel are instructed) are excluded from this system and payments to counsel for these cases may take considerable time to negotiate. It is not possible to ascertain the actual amount owed on these cases at year-end until some months later. In view of this the Department estimates such counsel fees outstanding for inclusion in these accounts.
As stated in the Management Commentary and in the Accounting Policy note above, income and expenditure in these Accounts are analysed across the Department's two functions, Programme (the direct costs of Crown prosecutions and legal services) and Administration (the costs of running the Department), as defined in the Consolidated Budgeting guidance issued by HM Treasury.
1.7 Capital Charge
A charge, reflecting the cost of capital utilised by the Department, is included in operating costs. The charge is calculated at the real rate set by HM Treasury (currently 3.5%) on the average carrying amount of all assets less liabilities, except for:
- cash balances with the Office of the Paymaster General and donated assets where the charge is nil; and
- liabilities for amounts to be surrendered to the Consolidated Fund for which no credit against the charge is allowed.
1.8 Pensions
Past and present employees are covered by the provisions of the Principal Civil Service Pension Scheme (PCSPS). This is a defined benefit scheme and is unfunded and non-contributory except in respect of dependants' benefits. The CPS recognises the expected cost of providing pensions on a systematic and rational basis over the period during which it benefits from employees' services by payment to the PCSPS of amounts calculated on an accruing basis. Liability for payment of future benefits is a charge on the PCSPS. With effect from 1 October 2002 new employees have the option to join either the PCSPS scheme or a Partnership Pension Account. The latter is a defined contribution scheme where the department recognises the contributions payable for the year.
1.9 Operating Leases
Rentals due under operating leases are charged to the Operating Cost Statement over the lease term on a straight-line basis, or on the basis of actual rentals payable where this fairly reflects the usage. Future payments, disclosed at Note 23, "Commitments under Leases", are not discounted.
1.10 Private Finance Initiative (PFI) Transactions
The CPS signed a contract entering into a PFI transaction on 31 December 2001 for a 10 year period commencing 1 April 2002. This has been accounted for in accordance with Technical Note No.1 (Revised), entitled How to account for PFI Transactions, as required by the FReM. The balance of risks and rewards of ownership of the PFI property are borne by the PFI operator, therefore the PFI payments are recorded as an operating cost. The CPS transferred all IT assets to the PFI operator with effect from 1 April 2002. A prepayment for their fair value is recognised and amortised over the life of the PFI contract.
1.11 Provisions
The Department provides for legal or constructive obligations, which are of uncertain timing or amount, at the balance sheet date on the basis of the best estimate of the expenditure required to settle the obligation. Where the effect of the time value of money is significant, the estimated risk-adjusted cash flows are discounted using the real rate set by HM Treasury (currently 2.2%).
1.12 Contingent Liabilities
In addition to contingent liabilities disclosed in accordance with FRS12, the Department discloses for parliamentary reporting and accountability purposes certain contingent liabilities where the likelihood of a transfer of economic benefit is remote. These comprise:
- items over £250,000 (or lower, where required by specific statute) that do not arise in the normal course of business and which are reported to Parliament by departmental Minute prior to the Department entering into the arrangement; and
- all items (whether or not they arise in the normal course of business) over £250,000 (or lower, where required by specific statute or where material in the context of resource accounts), which are required by the FReM to be noted in the resource accounts.
1.13 Value Added Tax
Most of the activities of the Department are outside the scope of VAT and, in general output tax does not apply and input tax on purchases is not recoverable. Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase cost of fixed assets. Where output tax is charged, the amounts are stated net of VAT.
2. Analysis of net resource outturn by section (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
| Description | Admin |
Other current |
Gross resource expenditure |
A in A |
Outturn Net Total |
Estimate Net Total |
2006-07 Net Total outturn compared with Estimate |
2005-06 Prior-year outturn |
|---|---|---|---|---|---|---|---|---|
| Request for Resources 1: | ||||||||
| Administration | 51,620 |
- |
51,620 |
(310) |
51,310 |
57,415 |
6,105 |
53,521 |
| Crown prosecutions and legal services | - |
609,984 |
609,984 |
(45,017) |
564,967 |
563,927 |
(1,040) |
548,495 |
| Total | 51,620 |
609,984 |
661,604 |
(45,327) |
616,277 |
621,342 |
5,065 |
602,016 |
| Resource Outturn | 51,620 |
609,984 |
661,604 |
(45,327) |
616,277 |
621,342 |
5,065 |
602,016 |
Explanation of the variation between Estimate and outturn (net total resources):
(i) Net total outturn was £5.065 million less than the Estimate, representing 0.82% of net provision. The underspend represents the decision of the CPS Board to freeze HQ staff numbers and budgets from 2005-06.
Detailed explanations of the variances are given in the Management Commentary.
3. Reconciliation of outturn to net operating cost and against Administration Budget
3(a) Reconciliation of net resource outturn to net operating cost (£Thousands)
| Description | Note |
Outturn |
Supply Estimate |
2006-07 Outturn compared with Estimate |
2005-06 Outturn |
|---|---|---|---|---|---|
| Net Resource Outturn | 2 |
616,277 |
621,342 |
5,065 |
602,016 |
| Non-supply income (CFERs) | 5 |
(2,059) |
- |
2,059 |
(1,550) |
| Net operating cost | 614,218 |
621,342 |
7,124 |
600,466 |
3(b) Outturn against final Administration Budget (£Thousands)
| Description | Budget |
2006-07 Outturn |
2005-06 Outturn |
| Gross Administration Budget | 57,815 |
51,617 |
53,623 |
| Less: Income allowable against the Administration Budget | (400) |
(310) |
(124) |
| Net outturn against final Administration Budget | 57,415 |
51,307 |
53,499 |
4. Reconciliation of resources to cash requirement (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
Description |
Note |
Estimate |
Outturn |
Net total outturn compared with Estimate saving/ (excess) |
|---|---|---|---|---|
| Resource Outturn | 2 |
621,342 |
616,277 |
5,065 |
| Capital: | ||||
| Acquisition of fixed assets | 12, 13 and 20 |
7,400 |
4,761 |
2,639 |
| Investments | - |
- |
- |
|
| Non-operating A in A: | - |
- |
- |
|
| Proceeds of fixed asset disposals | ||||
| Accruals adjustments | ||||
| Non-cash items | 9 and 10 |
(8,535) |
(8,563) |
28 |
| Changes in working capital other than cash | - |
5,096 |
(5,096) |
|
| Changes in creditors falling due after more than one year | - |
- |
- |
|
| Use of provision | 17 |
1,673 |
2,314 |
(641) |
| Net cash requirement | 621,880 |
619,885 |
1,995 |
5. Analysis of income payable to the Consolidated Fund (£Thousands)
Analysis of income payable to the Consolidated Fund.
In addition to appropriations in aid, the following income relates to the Department and is payable to the Consolidated Fund.
Description |
Note |
Forecast Income |
2006-07 Receipts |
Outturn Income |
2006-07 Receipts |
|---|---|---|---|---|---|
| Operating income and receipts - excess A in A | 6 |
- |
- |
1,403 |
1,624 |
| Non-operating income and receipts - excess A in A | 7 |
- |
- |
- |
450 |
| Subtotal | - |
- |
1,403 |
2,074 |
|
| Other operating income and receipts not classified as A in A | 6 |
- |
- |
656 |
610 |
| Other non-operating income and receipts not classified as A in A | - |
- |
- |
- |
|
| Other amounts collectable on behalf of the Consolidated Fund | - |
- |
- |
- |
|
| Total income payable to the Consolidated Fund | - |
- |
2,059 |
2,684 |
6. Reconciliation of income recorded within the Operating Cost Statement to operating income payable to the Consolidated Fund (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
Description |
2006-07 |
2005-06 |
|---|---|---|
| Operating income | ||
| Administration | 313 |
146 |
| Netted-off gross expenditure in sub-head | - |
- |
| Programme | 48,019 |
38,491 |
| Netted-off gross expenditure in sub-head | (946) |
(860) |
| Sub total | 47,386 |
37,777 |
| Income authorised to be appropriated-in-aid: Administration |
310 |
124 |
| Income authorised to be appropriated-in-aid: Programme |
45,017 |
36,103 |
| Sub total | 45,327 |
36,227 |
| Operating income payable to the Consolidated Fund Administration |
3 |
22 |
| Operating income payable to the Consolidated Fund Programme |
2,056 |
1,528 |
| Total | 2,059 |
1,550 |
7. Non-operating income - Excess A in A (£Thousands)
Description |
2006-07 |
2005-06 |
|---|---|---|
| Proceeds on disposal of fixed assets | - |
450 |
| Non-operating income - excess A in A | - |
450 |
The prior year balance represents sale proceeds from the disposal of Winchway House, Haverfordwest.
8. Staff numbers and related costs (£Thousands)
Staff costs comprise: |
Total |
Permanently employed staff |
2006-07 Others |
2006-07 Total |
|---|---|---|---|---|
| Wages and salaries | 274,742 |
257,715 |
17,027 |
261,575 |
| Social security costs | 21,277 |
21,277 |
- |
20,156 |
| Other pension costs | 52,146 |
52,146 |
- |
47,110 |
| Sub Total | 348,165 |
331,138 |
17,027 |
328,841 |
| Less recoveries in respect of outward secondments | (1,215) |
(1,215) |
- |
(229) |
| Total net costs | 346,950 |
329,923 |
17,027 |
328,612 |
The Principal Civil Service Pension Scheme (PCSPS) is an unfunded multi-employer defined benefit scheme but the Crown Prosecution Service is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the scheme as at 31 March 2003. You can find details in the resource accounts of the Cabinet Office: Civil Superannuation (www.civilservice-pensions.gov.uk).
For 2006-07, employers' contributions of £52,057,440 were payable to the PCSPS (2005-06: £47,024,672) at one of four rates in the range 17.1 to 25.5 per cent of pensionable pay, based on salary bands (the rates in 2005-06 were between 16.2 and 24.6 per cent). The scheme's Actuary reviews employer contributions every four years following a full scheme valuation. From 2007-08, the salary bands will be revised but the rates will remain the same.
The contribution rates are set to meet the cost of the benefits accruing during 2006-07 to be paid when the member retires, and not the benefits paid during this period to existing pensioners.
Employees can opt to open a partnership pension account, a stakeholder pension with an employer contribution. Employers' contributions of £82,161 (2005-06 £79,106) were paid to one or more of a panel of three appointed stakeholder pension providers. Employer contributions are age-related and range from 3 to 12.5 per cent (2005-06: 3 to 12.5 per cent) of pensionable pay. Employers also match employee contributions up to 3 per cent of pensionable pay. In addition, employer contributions of £6,111, 0.8 per cent (2005-06: £5,822, 0.8 per cent) of pensionable pay, were payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service and ill-health retirement of these employees. Contributions due to the partnership pension providers at the balance sheet date were £9,028 (2005-06: £8,761). Contributions prepaid at that date were £Nil.
7 individuals (2005-06: 16 individuals) retired early on ill-health grounds; the total additional accrued pension liabilities in the year amounted to £20,983 (2005-06: £58,473).
Average number of persons employed
The average number of whole-time equivalent persons employed during the year was as follows.
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
Objective |
Total |
Permanent staff |
2006-07 Number Others |
2005-06 Number Total |
|---|---|---|---|---|
| To ensure the effective delivery of justice | 8,546 |
8,282 |
264 |
8,384 |
| Total | 8,546 |
8,282 |
264 |
8,384 |
9. Other Administration Costs (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
Description |
Note |
2006-07 Column 1 |
2006-07 Column 2 |
2005-06 Column 1 |
2005-06 Column 2 |
|---|---|---|---|---|---|
| Rentals under operating leases: | |||||
| Hire of office equipment | 84 |
51 |
|||
| Other operating leases | 4,444 |
6,450 |
|||
4,528 |
6,501 |
||||
| PFI service charges: | |||||
| Off-balance sheet contracts | 24 |
616 |
1,084 |
||
| Non cash items | |||||
| Cost of capital charge | (130) |
(199) |
|||
| Other expenditure | |||||
| Accommodation and associated costs | 4,178 |
3,564 |
|||
| Communications | 241 |
375 |
|||
| Training | 2,154 |
2,048 |
|||
| Travel and subsistence | 2,227 |
1,956 |
|||
| Printing and stationery | 1,237 |
1,423 |
|||
| Postage and carriage | 387 |
396 |
|||
| Other expenditure | 6,036 |
6,660 |
|||
16,460 |
16,422 |
||||
21,474 |
23,808 |
10. Programme Costs (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
Description |
Note |
2006-07 Column 1 |
2006-07 Column 2 |
2005-06 Column 1 |
2005-06 Column 2 |
|---|---|---|---|---|---|
| Rentals under operating leases: | |||||
| Hire of office equipment | 1,016 |
501 |
|||
| Other operating leases | 20,641 |
17,595 |
|||
21,657 |
18,096 |
||||
| PFI service charges: | |||||
| Off-balance sheet contracts | 24 |
48,515 |
47,426 |
||
| Non cash items | |||||
| Depreciation | 4,457 |
5,358 |
|||
| Amortisation | 169 |
- |
|||
| Loss on disposal of fixed assets | 2 |
25 |
|||
| Loss on revaluation | 51 |
24 |
|||
| Cost of capital charge: | |||||
| Civil Estate | 207 |
201 |
|||
| Other items | 793 |
625 |
|||
| Change in bad debt allowance | 1,425 |
(112) |
|||
| Auditors’ remuneration (Note a) | 87 |
82 |
|||
| Provisions: | |||||
| Provided in year | 17 | 2,227 |
1,636 |
||
| Unrequired provision written back | 17 | (899) |
(618) |
||
| Unwinding of discount on provisions | 17 | 174 |
584 |
||
8,693 |
7,805 |
||||
| Other expenditure | |||||
| Accommodation and associated costs | 18,766 |
17,844 |
|||
| Communications | 5,827 |
6,104 |
|||
| Training | 1,606 |
1,828 |
|||
| Travel and subsistence | 4,920 |
4,783 |
|||
| Printing and stationery | 5,542 |
6,471 |
|||
| Postage and carriage | 4,385 |
4,092 |
|||
| Advocate fees | 145,220 |
145,896 |
|||
| Costs awarded to CPS written off | 29 | 674 |
209 |
||
| Witness expenses | 13,354 |
13,794 |
|||
| Other expenditure | 12,806 |
11,246 |
|||
213,100 |
212,267 |
||||
291,965 |
285,594 |
||||
| Less: programme income | 6 | (47,073) |
(37,631) |
||
244,892 |
247,963 |
Note a - There has been no auditors’ remuneration for non-audit work.
11. Income (£Thousands)
Description |
2006-07 Total |
2005-06 Total |
|---|---|---|
| Administration income: | ||
| Consolidated Fund extra receipts | 3 |
22 |
| Other | 310 |
124 |
| Programme income: | ||
| Costs awarded to the CPS | 33,593 |
34,420 |
| Recovered Assets Incentivisation Fund | 8,115 |
- |
| Rental receivable from external tenants | 2,466 |
2,239 |
| Rental receivable from other departments | 946 |
860 |
| Netted-off gross expenditure in sub-head | (946) |
(860) |
| Consolidated Fund extra receipts | 653 |
164 |
| Other | 2,246 |
808 |
| Total | 47,386 |
37,777 |
12. Tangible fixed assets (£ thousands)
Description |
Freehold Land and Buildings |
Leasehold Improvements |
Furniture and Fittings |
Information Technology |
Total |
|---|---|---|---|---|---|
| Cost or valuation | |||||
| At 1 April 2006 | 5,875 |
1,603 |
29,269 |
1,822 |
38,569 |
| Additions | - |
2,834 |
2,396 |
284 |
5,514 |
| Disposals | - |
- |
(4) |
- |
(4) |
| Revaluation | 669 |
85 |
92 |
(35) |
811 |
| At 31 March 2007 | 6,544 |
4,522 |
31,753 |
2,071 |
44,890 |
| Depreciation | |||||
| At 1 April 2006 | 178 |
251 |
11,136 |
1,081 |
12,646 |
| Charged in year | 211 |
512 |
3,214 |
473 |
4,410 |
| Disposals | - |
- |
(2) |
- |
(2) |
| Revaluation | 44 |
15 |
44 |
(20) |
83 |
| At 31 March 2007 | 433 |
778 |
14,392 |
1,534 |
17,137 |
| Net book value at 31 March 2007 | 6,111 |
3,744 |
17,361 |
537 |
27,753 |
| Net book value at 31 March 2006 | 5,697 |
1,352 |
18,133 |
741 |
25,923 |
Freehold land and buildings were valued at 31 March 2005 at £5,775,000 on the basis of existing use value by an external firm of Chartered Surveyors, Donaldsons. The valuations were undertaken in accordance with the UK Practice Statement 1.3 of the Royal Institution of Chartered Surveyors (RICS) Appraisal and Valuation Standards published 1 May 2003.
The Accounting Officer is not aware of any material changes in the carrying value of freehold land and buildings and therefore there have been no interim valuations, other than indexation, since 31 March 2005. Other tangible assets are revalued on the basis of latest available indices.
The majority of IT assets in use in the business are held under a PFI contract as detailed in Note 1.10 and 24.
13. Intangible fixed assets (£Thousands)
Intangible fixed assets comprise software licences.
| Intangible fixed assets | Total |
|---|---|
| Cost or valuation | |
| At 1 April 2006 | 946 |
| Additions | 119 |
| Disposals | - |
| Revaluation | (39) |
| At 31 March 2007 | 1,026 |
| Amortisation | |
| At 1 April 2006 | - |
| Charged in year | 169 |
| Disposals | - |
| Revaluation | (3) |
| At 31 March 2007 | 166 |
| Net book value at 31 March 2007 | 860 |
| Net book value at 31 March 2006 | 946 |
14. Debtors
14 (a) Analysis by type (£Thousands)
Description |
2006-07 |
2005-06 |
|---|---|---|
| Amounts falling due within one year: | ||
| Trade debtors (Note a) | 30,967 |
34,543 |
| Deposits and advances | 383 |
427 |
| Other debtors (Note b) | 989 |
829 |
| Prepayments | ||
| PFI | 751 |
751 |
| Other | 13,669 |
11,188 |
| Accrued income | 12,030 |
4,813 |
| Amounts due from the Consolidated Fund in respect of supply | - |
- |
58,789 |
52,551 |
|
| Amounts falling due after more than one year: | ||
| Prepayments | ||
| PFI | 3,004 |
3,755 |
| Other | 190 |
109 |
61,983 |
56,415 |
Note a - Included within debtors is £1,098k (2005-06: £1,769k) representing excess Appropriations in Aid that will be due to the Consolidated Fund once the debts are collected.
Note b - Included within other debtors is £46k (2005-06: £Nil) representing unexpected receipts due to the Consolidated Fund once the debts are collected.
14(b) Intra-Government Balances (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
| Description | Amounts falling due within one year |
Amounts falling due within one year |
Amounts falling due after more than one year |
Amounts falling due after more than one year |
|---|---|---|---|---|
2006-07 |
2005-06 |
2006-07 |
2005-06 |
|
| Balances with other central government bodies | 3,674 |
1,141 |
- |
- |
| Balances with local authorities | 4,985 |
2,100 |
91 |
79 |
| Balances with NHS Trusts | - |
- |
- |
- |
| Balances with public corporations and trading funds | - |
- |
- |
- |
| Intra-government balances | 8,659 |
3,241 |
91 |
79 |
| Balances with bodies external to government | 50,130 |
49,310 |
3,103 |
3,785 |
| Total debtors at 31 March | 58,789 |
52,551 |
3,194 |
3,864 |
15. Cash at bank and in hand (£Thousands)
Description |
2006-07 |
2005-06 |
|---|---|---|
| Balance at 1 April | 14,543 |
25,615 |
| Net change in cash balances | (10,463) |
(11,072) |
| Balance at 31 March | 4,080 |
14,543 |
| The following balances at 31 March were held at: | ||
| Office of HM Paymaster General | 4,047 |
14,486 |
| Commercial banks and cash in hand | 33 |
57 |
| Balance at 31 March | 4,080 |
14,543 |
16. Creditors
16(a) Analysis by type (£Thousands)
| Description | 2006-07 |
2005-06 |
|---|---|---|
| Amounts falling due within one year: | ||
| VAT | 113 |
33 |
| Other taxation and social security | 8,439 |
6,822 |
| Trade creditors | 9,288 |
11,990 |
| Other creditors | 5,564 |
4,505 |
| Accruals and deferred income | 30,611 |
27,269 |
54,015 |
50,619 |
|
| Amounts issued from the Consolidated Fund for supply but not spent at year end | 1,995 |
11,853 |
| Consolidated Fund extra receipts due to be paid to the Consolidated Fund | ||
| received | 2,085 |
2,690 |
| receivable | 1,144 |
1,769 |
59,239 |
66,931 |
16(b) Intra-Government Balances (£Thousands)
Description |
Amounts falling due within one year 2006-07 |
Amounts falling due within one year 2005-06 |
Amounts falling due after more than one year 2006-07 |
Amounts falling due after more than one year 2005-06 |
|---|---|---|---|---|
| Balances with other central government bodies | 19,751 |
27,841 |
- |
- |
| Balances with local authorities | 24 |
262 |
- |
- |
| Balances with NHS Trusts | - |
- |
- |
- |
| Balances with public corporations and trading funds | - |
- |
- |
- |
| Intra-government balances | 19,775 |
28,103 |
- |
- |
| Balances with bodies external to government | 39,464 |
38,828 |
- |
- |
| Total creditors at 31 March | 59,239 |
66,931 |
- |
- |
17. Provisions for liabilities and charges (£Thousands)
| Description | Early departure costs |
|---|---|
| Balance at 1 April 2006 | 10,231 |
| Provided in the year | 2,227 |
| Provisions not required written back | (899) |
| Provisions utilised in the year | (2,314) |
| Unwinding of discount | 174 |
| Balance at 31 March 2007 | 9,419 |
The CPS meets the additional costs of benefits beyond the normal PCSPS benefits in respect of employees who retire early by paying the required amounts annually to the PCSPS over the period between early departure and normal retirement date. The CPS provides for this in full when the early retirement programme becomes binding on the CPS by establishing a provision for the estimated payments discounted by the HM Treasury discount rate of 2.2 per cent in real terms.
18. General Fund
The General Fund represents the total assets less liabilities of the entity, to the extent that the total is not represented by other reserves and financing items. (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
Description |
Note |
2006-07 |
2006-07 |
2005-06 |
2005-06 |
|---|---|---|---|---|---|
| Balance at 1 April | 16,403 |
6,334 | |||
| Net Parliamentary funding | |||||
| Drawn Down | 610,027 |
602,577 |
|||
| Deemed | 11,853 |
20,643 |
|||
621,880 |
623,220 |
||||
| Year end adjustment | |||||
| Supply Creditor - current year | (1,995) |
(11,853) |
|||
| Net Transfer from Operating Activities | |||||
| Net operating cost | (614,218) |
(600,466) |
|||
| CFERs repayable to Consolidated Fund | 6 | (2,059) |
(1,550) |
||
| Net Transfer from Non-operating Activities | |||||
| CFERs repayable to Consolidated Fund | 7 | - |
(450) |
||
| (616,277) |
(602,466) |
||||
| Non Cash Charges: | |||||
| Cost of capital charge | 9 and 10 |
870 |
627 |
||
| Auditors’ remuneration | 87 |
82 |
|||
957 |
709 |
||||
| Transfer from revaluation reserve | 19 |
37 |
459 |
||
| Balance at 31 March | 21,005 |
16,403 |
19. Reserves
The revaluation reserve reflects the unrealised element of the cumulative balance of indexation and revaluation adjustments (excluding donated assets). (£Thousands)
| Description | 2006-07 |
2005-06 |
|---|---|---|
| Balance at 1 April | 4,262 |
4,145 |
| Arising on revaluation during the year (net) | 788 |
576 |
| Transferred to general fund in respect of realised element of revaluation reserve | (37) |
(459) |
| Balance at 31 March | 5,013 |
4,262 |
20. Notes to the Cash Flow Statement
20(a) Reconciliation of operating cost to operating cash flows. (£Thousands)
| Description | Note |
2006-07 |
2005-06 |
|---|---|---|---|
| Net operating cost | (614,218) |
(600,466) |
|
| Adjustments for non-cash transactions | 9 and 10 |
8,563 |
7,606 |
| (Increase) in debtors | (7,445) |
(5,867) |
|
| Increase/(decrease) in creditors falling due within one year | 2,975 |
(4,005) |
|
| Use of provisions | 17 |
(2,314) |
(2,446) |
| Net cash outflow from operating activities | (612,439) |
(605,178) |
20(b) Analysis of capital expenditure and financial investment (£Thousands)
| Description | Note |
2006-07 |
2005-06 |
|---|---|---|---|
| Tangible fixed asset additions | 12 |
(5,092) |
(2,350) |
| Proceeds of disposal of fixed assets | 450 |
- |
|
| Intangible fixed asset additions | 13 |
(119) |
(946) |
| Net cash outflow from investing activities | (4,761) |
(3,296) |
20(c) Analysis of capital expenditure and financial investment by Request for Resources (£Thousands)
The authoritative version of this table can be found in the PDF version of this annual report. There may be information contained in the layout of the data that can not be rendered in this web page.
| Description | Capital expenditure |
Loans, etc. |
A in A |
Net Total |
|---|---|---|---|---|
| Request for resources 1 | (5,211) |
- |
- |
(5,211) |
| Total 2006-07 | (5,211) |
- |
- |
(5,211) |
| Total 2005-06 | (3,856) |
- |
- |
(3,856) |
20(d) Analysis of financing (£Thousands)
| Description | Note |
2006-07 |
2005-06 |
|---|---|---|---|
| From the Consolidated Fund (Supply) - current year | 18 |
(610,027) |
(602,577) |
| Advances from the Contingencies Fund | - |
(12,000) |
|
| Repayments to the Contingencies Fund | - |
12,000 |
|
| Net financing | (610,027) |
(602,577) |
20(e) Reconciliation of Net Cash Requirement to (increase)/decrease in cash (£Thousands)
| Description | Note |
2006-07 |
2005-06 |
|---|---|---|---|
| Net cash requirement | 619,885 |
611,367 |
|
| From the Consolidated Fund (Supply) - current year | 18 |
(610,027) |
(602,577) |
| Amounts due to the Consolidated Fund - received in a prior year and paid over | 2,690 |
4,972 |
|
| Amounts due to the Consolidated Fund - received and not paid over | (2,085) |
(2,690) |
|
| Decrease in cash | 10,463 |
11,072 |
21. Notes to the Statement of Operating Costs by Departmental Aim and Objective
Other current expenditures were as follows: (£Thousands)
| Objective | 2006-07 |
2005-06 |
|---|---|---|
| To ensure the effective delivery of justice | 244,892 |
247,963 |
244,892 |
247,963 |
This expenditure represents programme costs which form part of the net operating costs disclosed in the Statement of Operating Costs by Departmental Aim and Objective.
Capital Employed by Departmental Aim and Objective at 31 March 2007
The CPS’ capital is employed exclusively for programme purposes.
Aim: To deliver a high quality prosecution service that brings offenders to justice, helps reduce both crime and the fear of crime and thereby promotes public confidence in the rule of law, through the consistent, fair and independent review of cases and through their fair, thorough and firm presentation at court. (£Thousands)
| Objective | 2006-07 Capital employed |
2005-06 Capital employed |
|---|---|---|
| To ensure the effective delivery of justice | 26,018 |
20,665 |
26,018 |
20,665 |
22. Capital commitments (£Thousands)
| Description | 2006-07 |
2005-06 |
|---|---|---|
| Contracted capital commitments at 31 March 2007 for which no provision has been made in these accounts. | 66 |
106 |
23. Commitments under leases
Operating Leases
Commitments under operating leases to pay rentals during the year following the year of these accounts are given in the table below, analysed according to the period in which the lease expires. (£Thousands)
| Description | 2006-07 Land and buildings |
2005-06 2006-07 Other |
Land and buildings |
2005-06 Other |
|---|---|---|---|---|
£000 |
£000 |
£000 |
£000 |
|
| Obligations under operating leases comprise: | ||||
| Expiry within 1 year | 1,106 |
1,229 |
1,969 |
16 |
| Expiry after 1 year but not more than 5 years | 12,527 |
3,246 |
10,674 |
1,959 |
| Expiry thereafter | 12,330 |
- |
12,941 |
2,881 |
25,963 |
4,475 |
25,584 |
4,856 |
24. Commitments under PFI contracts
The Department has entered into the following PFI contract.
Off balance sheet
Information, Communications and Technology (ICT) managed service
The Department's ICT service is provided through a managed service contract with a term of 10 years from 1 April 2002 to 31 March 2012. The contract is extendable for a further five years. The estimated capital value of the contract is £22.2m (2005-06: £21.7m). Under the terms of the contract CPS ICT assets were transferred to the contractor with effect from 1 April 2002. A prepayment was established for the fair value of the ICT assets transferred (£7,510,233.28) and the assets were impaired to a nil value as at 31 March 2002.
Charge to the Operating Cost Statement and future commitments
The total amount charged in the Operating Cost Statement in respect of off-balance sheet PFI transactions was £49,131,009 (2005-06: £48,510,539); and the payments to which the Department is committed during the year following the year of these accounts, analysed by the period during which the commitment expires, are as follows. (£Thousands)
| Description | 2006-07 |
2005-06 |
|---|---|---|
| Expiry within 1 year | - |
- |
| Expiry within 2 to 5 years | 42,105 |
- |
| Expiry within 6 to 10 years | - |
41,946 |
42,105 |
41,946 |
The contract covering the managed service allows for a number of improvements and enhancements to systems over the lifetime of the project. As such changes are successfully introduced there will necessarily be increases in the charges levied by the Service Provider. These increases will only be recognised in the accounts once the relevant changes have been properly tested and fully accepted as fit for purpose by the CPS.
25. Other financial commitments
The Department has entered into a contract, only cancellable at a significant cost, for the delivery and support of the Department's finance system. Implementation was completed during 2005-06. During 2006-07, the Department entered into a further contract of significant value for the development of the Department's Infonet. The payments to which the department is committed during the year following the year of these accounts, analysed by the period during which the commitment expires are as follows. (£Thousands)
| Description | 2006-07 |
2005-06 |
|---|---|---|
| Expiry within 1 year | - |
- |
| Expiry within 2 to 5 years | 924 |
656 |
| Expiry thereafter | - |
- |
| 924 |
656 |
26. Financial Instruments
FRS 13, Derivatives and Other Financial Instruments, requires disclosure of the role which financial instruments have had during the period in creating or changing the risks an entity faces in undertaking its activities. Because of the largely non-trading nature of its activities and the way in which government departments are financed, the CPS is not exposed to the degree of financial risk faced by business entities. Moreover, financial instruments play a much more limited role in creating or changing risk than would be typical of the listed companies to which FRS 13 mainly applies. The Department has no power to borrow or invest surplus funds and financial assets and liabilities are generated by day-to-day operational activities and are not held to change the risks facing the Department in undertaking its activities.
Liquidity risk
The Department's net revenue resource and capital requirements are financed by resources voted annually by Parliament. The CPS is not therefore exposed to liquidity risks.
Interest-rate and Foreign currency risk
The Department has no material deposits, and all material assets and liabilities are denominated in sterling, so it is not exposed to interest rate or currency risk.
Fair values
Set out below is a comparison by category of book values and fair values of the Department's financial assets and liabilities as at 31 March 2007. (£Thousands)
| Primary financial instruments: | Book Value |
Fair Value |
Basis of fair valuation |
|---|---|---|---|
| Financial assets: | |||
| Cash at bank and in hand | 4,080 |
4,080 |
|
| Financial liabilities: | |||
| Provisions | (9,419) |
(9,419) |
Note a |
Note a - Fair value is not significantly different from book value since, in the calculation of book value, the expected cash flows have been discounted by the real rate set by HM Treasury (currently 2.2 per cent).
27. Contingent Liabilities disclosed under FRS 12
As at 31 March 2007 the CPS was involved in eight Employment Tribunal cases. It is not possible to estimate their financial effect. The CPS was also involved in 19 personal injury claims. Eight cases are in the process of negotiation and these may result in settlements totalling £195,500. It is not possible to estimate the financial effect of the remaining 11 claims. In addition, the CPS was also involved in negotiation of costs relating to dilapidation charges. One claim has been submitted by the Landlord, which may result in a settlement of £48,816. One further claim is expected to be submitted. It is not possible to estimate the financial effect of this claim.
28. Contingent Liabilities not required to be disclosed under FRS 12 but included for parliamentary reporting and accountability
There were no contingent liabilities of this nature at the year-end.
29. Losses and Special Payments
Included within the Operating Cost Statement are losses and special payments as follows: (£Thousands)
| Description | 2006-07 |
2005-06 |
|---|---|---|
| Losses Statement | ||
| Total (14,574 cases) | 720 |
290 |
These losses include 14,509 cases relating to costs awarded to the CPS totalling £674k (Note 10) of which the Magistrates’ Courts, who are responsible for collecting costs awarded to the CPS, wrote off 13,912 cases with a value of £527k under their delegated powers, and the CPS authorised a further write off of £147k comprising 597 cases. (£Thousands)
Special Payments |
2006-07 |
2005-06 |
|---|---|---|
| Total (34 cases) | 320 |
397 |
30. Related-party transactions
The CPS has close working relationships with all agencies within the criminal justice system and particularly the Courts, their ultimate controlling party being the Department for Constitutional Affairs (see Note 1.5). The Courts are regarded as related parties with which the department has had material transactions, being mainly costs awarded by the Courts to the CPS (see Note 11) less amounts written off (see Note 10).
In response to the recommendations of the Glidewell review the CPS and the Police have combined the administration of case files through the collocation of Criminal Justice Units. In addition the CPS has had a number of transactions with other Government bodies.
None of the Board members, key managerial staff or other related parties has undertaken any material transactions with the CPS during the year.
31. Third-party assets
There are no third-party assets as at the balance sheet date.
Departmental Remuneration Report
Remuneration Policy
The Remuneration Committee comprises:
- Peter Lewis (Chief Executive)
- Ros McCool (Director, Human Resources)
- Janet Birch (National Business Support Manager)
The remuneration of senior civil servants is set by the Prime Minister following independent advice from the Review Body on Senior Salaries.
The Review Body also advises the Prime Minister from time to time on the pay and pensions of Members of Parliament and their allowances; on Peers' allowances; and on the pay, pensions and allowances of Ministers and others whose pay is determined by the Ministerial and Other Salaries Act 1975.
In reaching its recommendations, the Review Body is to have regard to the following considerations:
- the need to recruit, retain and motivate suitably able and qualified people to exercise their different responsibilities;
- regional/local variations in labour markets and their effects on the recruitment and retention of staff;
- Government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services;
- the funds available to departments as set out in the Government's departmental expenditure limits; and
- the Government's inflation target.
The Review Body takes account of the evidence it receives about wider economic considerations and the affordability of its recommendations.
Further information about the work of the Review Body can be found at www.ome.uk.com.
In addition, the Remuneration Committee is tasked with considering the relative contributions of the Department's senior employees within each pay band. Paying due regard to completed performance reports, consistency and scope of objectives and the effects of external factors, the committee will then consider individual merit awards in line with Cabinet Office guidance. If implemented, such merit awards will be in addition to the minimum progression of all Senior Civil Service pay bands implemented in line with the recommendations of the Review Body (3.5% with effect from 1 April 2006).
Service Contracts
Civil Service appointments are made in accordance with the Civil Service Commissioners' Recruitment Code, which requires appointment to be on merit on the basis of fair and open competition but also includes the circumstances when appointments may otherwise be made.
The DPP, Ken Macdonald QC, was appointed by the Cabinet Office for a period of three years under a contract dated 1 November 2003; compensation for early termination is payable in accordance with the relevant provisions of the Civil Service Compensation Scheme (CSCS) and the DPP may retire early on medical grounds with benefits provided under the terms of his pension scheme. His contract has been extended for a period of two years and runs from 1 November 2006 until 31 October 2008.
Claire Hamon, Director Business Information Systems, serves under a three year fixed term contract dated 13 January 2006 which has an unexpired term of one year and nine months. The contract stipulates a notice period of three months; compensation for early termination is payable in accordance with the relevant provisions of the CSCS, and she may retire early on medical grounds receiving payment of relevant ill health retirement benefits.
All other officials covered by this report hold appointments which are open-ended and allow for retirement at the age of 60, although they have the right to work up to age 65. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the CSCS.
Further information about the work of the Civil Service Commissioners can be found at www.civilservicecommissioners.gov.uk.
The remuneration of all directors, non-executive directors and staff employed in the CPS is paid entirely in cash.
Salary and Pension Entitlements
The following sections provide details of the remuneration and pension interests of the most senior officials of the department.
Remuneration (audited)
| Officials | Post held | Date joined or left Board (if applicable) | 2006-07 Salary £000 | 2005-06Salary £000 |
|---|---|---|---|---|
| Ken Macdonald QC (a) | Director of Public Prosecutions | 180 - 185 | 175 - 180 | |
| Peter Lewis | Chief Executive | (from 15 Jan 07) | 25 - 30 | - |
| (fye 135 - 140) | ||||
| Director Business Development Directorate | (to 14 Jan 07) | 100 - 105 | 120 - 125 | |
| (fye 115 - 120) | ||||
| Richard Foster | Chief Executive | (to 12 Jan 07) | 145 - 150 | 140 - 145 |
| (fye 180 - 185) | ||||
| Claire Hamon | Director Business Information Systems | 135 - 140 | 130 - 135 | |
| John Graham | Director Finance | 100 - 105 | 95 - 100 | |
| Angela O'Connor | Director Human Resources | (to 19 Nov 06) | 85 - 90 (fye 120 - 125) |
110 - 115 |
| Ros McCool | Director Human Resources | (from 15 Jan 07) | 15 - 20 (fye 100 - 105) |
- |
| Séamus Taylor | Director of Equality and Diversity | 90 - 95 | 80 - 85 | |
| Steve Przybylski | Acting Director Business Development Directorate | (from 15 Jan 07) | 20 - 25 (fye 100 - 105) |
- |
| Philip Geering | Director Policy | (to 31 Dec 06) | 65 - 70 (fye 90 - 95) |
95 - 100 |
| Roger Daw | Director Policy | (from 16 Jan 07) | 20 - 25 (fye 105 - 110) |
- |
| Dru Sharpling | CCP, London | 130 - 135 | 125 - 130 | |
| Jim England | CCP,West Mercia | (to 31 Oct 06) | 50 - 55 (fye 90 - 95) |
85 - 90 |
| Judith Walker | CCP, South Yorkshire | (from 23 Mar 07) | 0 - 5 (fye 90 - 95) |
- |
| Portia Ragnauth | CCP, Durham | 75 - 80 | 70 - 75 | |
| Neil Franklin | CCP,West Yorkshire | 100 - 105 | 95 - 100 | |
| Deborah King | ABM, Merseyside | (to 31 Jan 07) | 45 - 50 (fye 55 - 60) |
55 - 60 |
| Adele Clarke | ABM, Northumbria | (from 23 Mar 07) | 0 - 5 (fye 55 - 60) |
- |
| Anjali Arya (b) | Non-Executive Director | (to 12 Jun 06) | ||
| Philip Oliver (b) | Non-Executive Director | |||
| Rob Sykes (b) | Non-Executive Director | (from 3 Apr 06) | ||
| Gerard Lemos (b) | Non-Executive Director | (from 3 Apr 06) |
- The Director of Public Prosecutions is provided with a car and chauffeur for official use. This is assessed by HM Revenue & Customs as constituting a benefit in kind in the sum of £16,631. Tax and National Insurance contributions on this sum, amounting to £14,635 have been paid on the Director’s behalf by the CPS.
- Non-Executive Directors received a fee of £11,368 as remuneration for sitting on the Board during 2006-07. Expenses are paid.
fye = full year equivalent salary
Salary
"Salary" includes gross salary, performance pay or bonuses, overtime, reserved rights to London weighting or London allowances, recruitment and retention allowances, private office allowances and any other allowance to the extent that it is subject to UK taxation.
This report is based on payments made by the Department and thus recorded in these accounts.
Benefits in Kind
The monetary value of benefits in kind covers any benefits provided by the employer and treated by HM Revenue & Customs as a taxable emolument.
Pension Benefits
Civil Service Pensions
Pension benefits are provided through the Civil Service Pension arrangements. From 1 October 2002, civil servants may be in one of three statutory based "final salary" defined benefit schemes (classic, premium and classic plus). The schemes are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium and classic plus are increased annually in line with changes in the Retail Price Index. New entrants after 1 October 2002 may choose between membership of premium or joining a "money purchase" stakeholder arrangement with a significant employer contribution (partnership pension account).
Employee contributions are set at the rate of 1.5 per cent of pensionable earnings for classic and 3.5 per cent for premium and classic plus. Benefits in classic accrue at the rate of 1/80th of pensionable salary for each year of service. In addition, a lump sum equivalent to three years' pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum (but members may give up (commute) some of their pension to provide a lump sum). Classic plus is essentially a variation of premium, but with benefits in respect of service before 1 October 2002 calculated broadly as per classic.
The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 3 per cent and 12.5 per cent (depending on the age of the member) into a stakeholder pension product chosen by the employee. The employee does not have to contribute but where they do make contributions, the employer will match these up to a limit of 3 per cent of pensionable salary (in addition to the employer's basic contribution).Employers also contribute a further 0.8 per cent of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill-health retirement).
The accrued pension quoted is the pension the member is entitled to receive when they reach 60, or immediately on ceasing to be an active member of the scheme if they are already 60.
Further details about the Civil Service Pension arrangements can be found at the website www.civilservice-pensions.gov.uk
Cash Equivalent Transfer Values
A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member's accrued benefits and any contingent spouse's pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The CETV figures, and from 2003-04 the other pension details, include the value of any pension benefit in another scheme or arrangement which the individual has transferred to the Civil Service Pension arrangements and for which the Cabinet Office's Civil Superannuation Vote has received a transfer payment commensurate to the additional pension liabilities being assumed. They also include any additional pension benefit accrued to the member as a result of their purchasing additional years of pension service in the scheme at their own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries.
Real Increase in CETV
This reflects the increase in CETV effectively funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.
Pension for the Director of Public Prosecutions
Pension benefits are provided through two pension schemes which have the DPP as its only member, and were laid before Parliament on 15 June 2006. The Schemes are unfunded and the cost of benefits will be met by monies voted by Parliament each year. The pensions will be increased annually in line with changes in the Retail Prices Index.
The two pension schemes provide benefits which broadly match the benefits provided under the Judicial Pension Scheme. The principal scheme is a registered scheme and provides benefits up to the earnings cap. The supplementary scheme provides on earnings above the cap and is not a registered scheme. The normal retirement age for the scheme is 65.
Employee contributions are set at the rate of 3% of pensionable earnings up to the earnings cap. Benefits accrue at the rate of 1/40th of pensionable salary for each year of service. In addition, a lump sum equivalent to 2.25 years' pension is payable on retirement.
Pension benefits (audited): (£Thousands)
Officials |
Accrued pension at age 60 as at 31 March 2007 and related lump sum |
Real increase in pension and related lump sum at age 60 |
CETV at 31 March 2007 (a) |
CETV at 31 March 2006 (b) |
Real increase in CETV |
|---|---|---|---|---|---|
| Ken Macdonald QC Director of Public Prosecutions |
pension 15 - 20 lump sum 35 - 40 |
pension 5 - 7.5 lump sum 10 - 12.5 |
256 |
174 |
61 |
| Peter Lewis Chief Executive (from 15 Jan 07) |
pension 40 - 45 lump sum 125 - 130 |
pension 0 - 2.5 lump sum 2.5 - 5 |
744 |
705 |
26 |
| Richard Foster Chief Executive (to 12 Jan 07) |
pension 70 - 75 lump sum 215 - 220 |
pension 2.5 - 5 lump sum 10 - 12.5 |
1,552 |
1,490 |
58 |
| Claire Hamon Director Business Information Systems |
pension 5 - 10 lump sum n/a |
pension 0 - 2.5 lump sum n/a |
89 |
68 |
17 |
| John Graham Director Finance |
pension 35 - 40 lump sum 115 - 120 |
pension 0 - 2.5 lump sum 5 - 7.5 |
834 |
755 |
49 |
| Angela O'Connor Director Human Resources (to 19 Nov 06) |
pension 25 - 30 lump sum 85 - 90 |
pension 0 - 2.5 lump sum 0 - 2.5 |
493 |
479 |
8 |
| Ros McCool Director Human Resources (from 15 Jan 07) |
pension 25 - 30 lump sum 75 - 80 |
pension 0 - 2.5 lump sum 5 - 7.5 |
513 |
473 |
34 |
| Séamus Taylor Director of Equality and Diversity |
pension 20 - 25 lump sum 60 - 65 |
pension 0 - 2.5 lump sum 2.5 - 5 |
296 |
279 |
12 |
| Peter Lewis Director Business Development Directorate (to 14 Jan 07) |
pension 40 - 45 lump sum 120 - 125 |
pension 0 - 2.5 lump sum 0 - 2.5 |
704 |
684 |
11 |
| Steve Przybylski Acting Director Business Development Directorate (from 15 Jan 07) |
pension 40 - 45 lump sum 130 - 135 |
pension 0 - 2.5 lump sum 2.5 - 5 |
979 |
908 |
29 |
| Philip Geering Director Policy (to 31 Dec 06) |
pension 20 - 25 lump sum 70 - 75 |
pension 0 - 2.5 lump sum 0 - 2.5 |
382 |
354 |
7 |
| Roger Daw Director, Policy (from 16 Jan 07) |
pension 25 - 30 lump sum 85 - 90 |
pension 0 - 2.5 lump sum 0 - 2.5 |
462 |
431 |
12 |
| Dru Sharpling CCP, London |
pension 5 - 10 lump sum 15 - 20 |
pension 0 - 2.5 lump sum 2.5 - 5 |
118 |
92 |
22 |
| Jim England CCP, West Mercia (to 31 Oct 06) |
pension 25 - 30 lump sum 75 - 80 |
pension 0 - 2.5 lump sum 0 - 2.5 |
395 |
381 |
11 |
| Judith Walker CCP, South Yorkshire (from 23 Mar 07) |
pension 25 - 30 lump sum 80 - 85 |
pension 0 - 2.5 lump sum 0 - 2.5 |
510 |
509 |
- |
| Portia Ragnauth CCP, Durham |
pension 20 - 25 lump sum 60 - 65 |
pension 0 - 2.5 lump sum 2.5 - 5 |
332 |
309 |
13 |
| Neil Franklin CCP, West Yorkshire |
pension 35 - 40 lump sum 105 - 110 |
pension 0 -2.5 lump sum 2.5 - 5 |
829 |
772 |
20 |
| Deborah King ABM, Merseyside (to 31 Jan 07) |
pension 20 - 25 lump sum 70 - 75 |
pension 0 - 2.5 lump sum 0 - 2.5 |
490 |
469 |
9 |
| Adele Clarke ABM, Northumbria (from 23 Mar 07) |
pension 15 - 20 lump sum 45 - 50 |
pension 0 - 2.5 lump sum 0 - 2.5 |
210 |
209 |
- |
a) Where an official ceased to act as a Board member during the year, the CETV shown is that at their date of departing the Board.
b) Where an official has joined the Board during the year, the comparative CETV shown is that at their date of joining the Board.
Ken Macdonald QC
Accounting Officer
9 July 2007
