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Crown Prosecution Service Annual Report and Resource Accounts 2010 - 2011

Resource Accounts

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 ('the Department') for the year ended 31 March 2011 under the Government Resources and Accounts Act 2000. These comprise the Statement of Parliamentary Supply, Statement of Comprehensive Net Expenditure and the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Taxpayers' Equity 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

As explained more fully in the Statement of Accounting Officer's Responsibilities, the Accounting Officer is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. My responsibility is to audit, certify and report on the financial statements in accordance with the Government Resources and Accounts Act 2000. I conducted my audit in accordance with International Standards on Auditing (UK and Ireland). Those standards require me and my staff to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Department's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Department; and the overall presentation of the financial statements. In addition I read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements. If I become aware of any apparent material misstatements or inconsistencies I consider the implications for my certificate.

In addition, I am required to obtain evidence sufficient to give reasonable assurance that the expenditure and income reported in the financial statements have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

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.

Opinion on Financial Statements

In my opinion:

  • The financial statements give a true and fair view of the state of the Department's affairs as at 31 March 2011 and of its net cash requirement, net resource outturn and net operating cost, for the year then ended; and
  • The financial statements have been properly prepared in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions issued thereunder.

Opinion on other matters

In my opinion:

  • The part of the Remuneration Report to be audited has been properly prepared in accordance with HM Treasury directions made under the Government Resources and Accounts Act 2000; and
  • The information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which I report by exception

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

  • Adequate accounting records have not been kept; or
  • The financial statements and the part of the Remuneration Report to be audited are not in agreement with the accounting records; or
  • I have not received all of the information and explanations I require for my audit; or
  • The Statement on Internal Control does not reflect compliance with HM Treasury's guidance.

Report

I have no observations to make on these financial statements.

Amyas C E Morse
Comptroller and Auditor General
National Audit Office
157-197 Buckingham Palace Road
Victoria, London, SW1W 9SP
8 July 2011

Statement of Parliamentary Supply

Summary of Resource Outturn 2010-11

Description Note 2010-2011 £000 Estimate Gross expenditure 2010-2011 £000 Estimate A in A 2010-2011 £000 Estimate Net Total 2010-2011 £000 Outturn Gross expenditure 2010-2011 £000 Outturn A in A 2010-2011 £000 Outturn Net Total 2010-11 £000 Net total Outturn compared with Estimate: saving/(excess) 2009-2010 £000 Outturn Net Total
Request for Resources 1: To bring offenders to justice, recover proceeds of crime, improve services to victims and witnesses and promote confidence by firm and fair decision making and presentation of cases in court 2 713,988 71,100 642,888 684,725 71,100 613,625 29,263 672,191
Total resources 3 713,988 71,100 642,888 684,725 71,100 613,625 29,263 672,191
Non-operating cost A in A 5 - - - - - - - -
Net cash requirement 2010-11
Description Note 2010-11 £000 Estimate 2010-11 £000 Outturn 2010-11 £000 Net total Outturn compared with Estimate: saving/(excess) 2009-2010 £000 Outturn
Net cash requirement 4 643,385 630,437 12,948 663,967
Summary of income
Description Note 2010-11 £000 Forecast Income 2010-11 £000 Forecast Receipts 2010-11 £000 Outturn Income 2010-11 £000 Outturn Receipts
Total 5 - - 1,242 853

The notes form part of these accounts.

Statement of Comprehensive Net Expenditure for the year ended 31 March 2011

Description Note 2010-11 £000 Staff Costs 2010-11 £000 Other Costs 2010-11 £000 Income 2010-11 £000 2009-10 £000
Administration costs:
   Staff costs 7 24,126 26,191
   Other    administration costs 8 21,956 29,988
   Operating income 10 (7,130) (2,045)
Programme costs: To bring offenders to justice, recover proceeds of crime, improve services to victims and witnesses and promote confidence by firm and fair decision making and presentation of cases in court
   Staff costs 7 351,476 360,688
   Expenditure 9 287,167 319,379
   Income 10 (65,212) (62,499)
Totals 375,602 309,123 (72,342) 671,702
Net Operating Cost 3 612,383 671,702
Other Comprehensive Expenditure    
Net (gain)/loss on revaluation of Property Plant and Equipment 3,487 (3,304)
Net (gain)/loss on revaluation of Intangibles 17 (6)
Total Comprehensive Expenditure for the year ended 31 March 2011 615,887 668,392

The notes form part of these accounts.

Statement of Financial Position as at 31 March 2011

Description Note 2011
£000
Breakdown
2011
£000
2010
£000
Breakdown
2010
£000
Non-current assets:
Property, plant and equipment 11 36,231 45,907
Intangible assets 12 15,676 19,761
Total non-current assets 51,907 65,668
Receivables falling due after more than one year 14 19 45
Current assets:
Trade and other receivables 14 32,014 33,455
Other current assets 14 26,814 25,557
Cash and cash equivalents 15 13,106 24,572
Total current assets 71,934 83,584
Total assets 123,860 149,297
Current liabilities
Trade and other payables 17 16,857 17,754
Other liabilities 17 and 18 77,161 102,292
Total current liabilities 94,018 120,046
Non-current assets less net current liabilities 29,842 29,251
Non-current liabilities
Provisions 18 8,109 15,825
Other payables 17 29,596 36,813
Total non-current liabilities 37,705 52,638
Assets less liabilities (7,863) (23,387)
Taxpayers' equity:
General fund (12,288) (31,503)
Revaluation reserve 4,425 8,116
Total taxpayers' equity (7,863) (23,387)

Keir Starmer QC
Accounting Officer
5 July 2011

Statement of Cash Flows for the year ended 31 March 2011

Description Note 2010-11
£000
2009-10
£000
Cash flows from operating activities
Net operating cost (612,383) (671,702)
Adjustments for non-cash transactions 8 and 9 11,425 33,425
(Increase)/decrease in trade and other receivables (932) (8,769)
Increase/(decrease) in trade payables (20,744) 18,045
less movements in payables relating to items not passing through the Statement of Comprehensive Net Expenditure 13,747 (17,127)
Use of provisions 18 (7,737) (4,163)
Net cash outflow from operating activities (616,624) (650,291)
Cash flows from investing activities
Purchase of property, plant and equipment (4,339) (4,579)
Purchase of intangible assets (41) -
Net cash outflow from investing activities 11 (4,380) (4,579)
Cash flows from financing activities
From the Consolidated Fund (Supply) - current year 619,581 679,930
Capital element of payments in respect of finance leases and on-balance sheet PFI contracts (8,580) (7,842)
Net financing 611,001 672,088
Net increase/(decrease) in cash and cash equivalents in the period before adjustment for receipts and payments to the Consolidated Fund (10,003) 17,218
Payments of amounts due to the Consolidated Fund (1,463) (1,263)
Net increase/(decrease) in cash and cash equivalents in the period after adjustment for receipts and payments to the Consolidated Fund (11,466) 15,955
Cash and cash equivalents at the beginning of the period 15 24,572 8,617
Cash and cash equivalents at the end of the period 15 13,106 24,572

The notes form part of these accounts.

Statement of Changes in Taxpayers' Equity for the year ended 31 March 2011

Description Note General Fund
£000
Revaluation Reserve
£000
Total Reserves
£000
Balance at 1 April 2009 (23,548) 5,641 (17,907)
Net Parliamentary Funding - drawn down 679,930 - 679,930
Net Parliamentary Funding - deemed 7,842 - 7,842
Supply payable 17 (23,804) - (23,804)
CFERs payable to the Consolidated Fund (489) - (489)
Comprehensive Expenditure for the year (671,702) 3,310 (668,392)
Non-cash charges - cost of capital (Note a) 8 and 9 (709) - (709)
Non-cash charges - auditor's remuneration 8 142 - 142
Transfers between reserves 835 (835) -
Balance at 31 March 2010 (31,503) 8,116 (23,387)
Net Parliamentary Funding - drawn down 619,581 - 619,581
Net Parliamentary Funding - deemed 23,804 - 23,804
Supply payable 17 (12,948) - (12,948)
CFERs payable to the Consolidated Fund 5 (1,242) - (1,242)
Comprehensive Expenditure for the year (612,383) (3,504) (615,887)
Non-cash charges - auditor's remuneration 8 93 - 93
Transfers between reserves 187 (187) -
Adjustment in respect of movements in the revaluation reserve (note b) 2,123 2,123
Balance at 31 March 2011 (12,288) 4,425 (7,863)

Note a - From 1 April 2010, under HM Treasury's Alignment Project, the aligning of Departmental budgets, Estimates and accounts, cost of capital charges and credits were removed from accounts.

Note b - During the financial year the CPS upgraded the fixed asset module of its finance system, Oracle Financials, bringing it in line with the rest of the finance system which was upgraded from Oracle Financials version 11.5.9 to version 12.0.6 in 2009-10. Part of this work involved the reconciliation of historic cost accounting movements through the revaluation reserve and this gave rise to an adjustment in respect of revaluation expensed in prior periods.

The notes form part of these accounts.