Note 18 to the Departmental Resource Accounts: Provisions for liabilities and charges
| Description | Early departure costs £000 |
Other £000 |
Total £000 |
|---|---|---|---|
| Balance at 1 April 2009 | 13,581 | 2,802 | 16,383 |
| Provided in the year | 14,690 | 2,986 | 17,676 |
| Provisions not required written back | (241) | (917) | (1,158) |
| Provisions utilised in the year | (3,381) | (782) | (4,163) |
| Unwinding of discount | 181 | - | 181 |
| Balance at 31 March 2010 | 24,830 | 4,089 | 28,919 |
| Description | Early departure costs £000 |
Other £000 |
Total £000 |
|---|---|---|---|
| Balance at 1 April 2008 | 11,953 | 762 | 12,715 |
| Provided in the year | 4,781 | 3,149 | 7,930 |
| Provisions not required written back | - | (188) | (188) |
| Provisions utilised in the year | (3,282) | (921) | (4,203) |
| Unwinding of discount | 129 | - | 129 |
| Balance at 31 March 2009 | 13,581 | 2,802 | 16,383 |
Analysis of expected timing of discounted flows
| Description | Early departure costs £000 |
Other £000 |
Total £000 |
|---|---|---|---|
| In the remainder of the Spending Review period to 2011 | 9,005 | 4,089 | 13,094 |
| Between 2012 and 2016 | 12,814 | - | 12,814 |
| Between 2017 and 2021 | 2,729 | - | 2,729 |
| Thereafter | 282 | - | 282 |
| Balance at 31 March 2010 | 24,830 | 4,089 | 28,919 |
Early departure costs
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 1.8 per cent in real terms.
Other provisions
Other provisions comprise outstanding compensation claims for personal injury, employment tribunal legal claims and dilapidation claims served by landlords at the expiry of a lease on a property occupied by the CPS. In respect of compensation claims, provision has been made for the litigation against the Department. The provision reflects all known legal claims where legal advice indicates that it is more than 50 per cent probable that the claim will be successful and the amount of the claim can be reliably estimated. Expenditure is likely to be incurred within one year. Legal claims which may succeed but are less likely to do so or cannot be estimated are disclosed as contingent liabilities in Note 24. All dilapidation claims received or anticipated from landlords are provided for. Where a claim has yet to be submitted, an estimate of the cost of the claim is provided by the CPS managing agents.
Back to main Notes to the Departmental Resource Accounts page
