The Crown Prosecution Service
Annual Report and Accounts 2021-22

Notes to Departmental Accounts

1. Statement of accounting policies

Basis of preparation

The financial statements have been prepared on a going concern basis and in accordance with International Financial Reporting Standards (IFRS) as adapted and interpreted by the Financial Reporting Manual (FReM) issued by HM Treasury. Where the FReM permits a choice of accounting policy, the accounting policy which is judged to be the most appropriate to the particular circumstances of the Crown Prosecution Service for the purpose of giving a true and fair view has been selected. The particular policies adopted by the Crown Prosecution Service are described below. They have been applied consistently in dealing with items that are considered material to the accounts.

1.1. Accounting Convention

These accounts have been prepared under the historical cost convention modified to account for the revaluation of non-current assets.

1.2. Going concern

The CPS’ Statement of Financial Position shows a net liability as at 31 March 2022. However, these accounts are produced on a going concern basis in accordance with the FReM, as the CPS is a non-ministerial government department providing services that are anticipated to continue, as evidenced by the provision of future supply funding voted by Parliament.

1.3. Non-current Assets

Property, plant and equipment

Property, plant and equipment that are capable of being used for a period exceeding one year and that have a cost equal to or greater than £2,000 are capitalised, including leasehold improvements. Where significant purchases of individual assets that are separately beneath the capitalisation threshold arise in connection with a single project, they are treated as a grouped asset. On initial recognition, assets are measured at cost, including any costs such as installation directly attributable to bringing them into working condition. Subsequently, assets that are held for their service potential and are in use are measured at current value in existing use, which is interpreted as market value for existing use.

Costs of bought-in services incurred in preparation for the implementation of ICT 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.

Property, plant and equipment is revalued at current value in existing use each year by indexation up to the year end using Producer Price Indices, published by the Office for National Statistics. The carrying values of property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

On 29 May 2020, the CPS transferred responsibility for its property portfolio to the Government Property Agency (GPA). This included the transfer of ownership of freehold land and buildings at Portsmouth and Sheffield. Following this transfer, the CPS no longer owns land and buildings.

Intangible non-current assets

On initial recognition, intangible non-current assets are measured at cost including any costs such as installation directly attributable to bringing them into working condition. Subsequently, intangible non-current assets are measured at current value in existing use where an active market exists, otherwise at the lower of amortised replacement cost and value in use. All expenditure on intangible non-current assets that are capable of being used for a period that exceeds one year and individually have a cost equal to or greater than £2,000 is capitalised.

1.4. Depreciation, Amortisation and Impairment

Property, plant and equipment

Property, plant and equipment are depreciated at rates calculated to write them down to estimated residual value on a straight line basis over their estimated useful lives. Asset lives are normally in the following ranges:

Furniture and fittings 4 to 10 years
Information technology 3 to 4 years

Leasehold improvements are written off over the shortest of:

1. the remaining life of the property lease;
2. 10 years; or
3. where it has been established that a break clause in the lease is likely to be exercised by the CPS, the period to the first possible date of exercise of the relevant break clause.

Impairment losses that arise from a consumption of economic benefit are taken to the Statement of Comprehensive Net Expenditure, the balance on any revaluation reserve (up to the level of the impairment) being transferred to the general fund. Impairment losses that do not result from a loss of economic benefit are taken to the revaluation reserve, to the extent that the impairment does not exceed the amount in the revaluation surplus for the same asset.

Intangible non-current assets

Intangible assets are amortised on a straight line basis over their estimated useful lives. Impairment losses are charged in the same way as those arising on property, plant and equipment.

Right-of-use assets

Right-of-use assets are depreciated on a straight line basis over the associated lease term, or estimated useful life where this is shorter. Impairment losses are charged in the same way as those arising on property, plant and equipment.

As permitted by the FReM, right-of-use assets are subsequently measured using the cost model as a proxy for the measurement of the cost value in use. This is because lease terms require lease payments to be updated for market conditions, for example, rent reviews for leased properties, which will be captured in the IFRS 16 cost measurement provisions. Right-of-use assets also have shorter useful lives and values than their respective underlying assets and, as such, cost can be used as a proxy for assets with shorter economic lives or lower values in accordance with the FReM.

1.5. Leases

The CPS has adopted IFRS 16, as interpreted and adapted in the FReM, with effect from 1 April 2021.

In accordance with the FReM, intra-UK government agreements, including Terms of Occupancy Agreements (TOA) with GPA, are treated as contracts and therefore within the scope of IFRS 16 where they convey the right to use an asset.

Where a lease has been identified, the CPS recognises a right-of-use asset and a corresponding lease liability, except for short term leases and leases for which the underlying asset is of low value. For such leases, the lease payments are recognised as an expense on a straight line basis over the lease term.

The CPS has not set a specific threshold for identifying assets that are of low value, and applies the guidance in IFRS 16 on a case by case basis.

Where the interest rate implicit in a lease cannot be readily determined, the CPS calculates the lease liability using the HM Treasury discount rates promulgated in PES papers as the incremental borrowing rate. For leases that commence or are remeasured in the 2022 calendar year, this rate is 0.95% (2021: 0.91%).

The CPS does not apply IFRS 16 to leases of intangible assets and recognises these in accordance with IAS 38 where appropriate.

1.6. Cash

For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash at bank and cash in hand.

1.7. Financial Assets and Liabilities

Financial assets consist of trade receivables and other current assets such as cash at bank and in hand. Financial liabilities consist of trade payables and other current liabilities. In accordance with IFRS 9 – Financial Instruments, financial assets and liabilities are initially recognised at fair value, which is determined by reference to the underlying contract giving rise to the debt or liability. Subsequently, they are measured at amortised cost using the effective interest method, less any impairment.

1.8. Allowance for Impairment of Receivables

The CPS receives the bulk of its income from costs awarded against convicted defendants. Her Majesty’s Courts and Tribunals Service (HMCTS) is responsible for the collection of costs awarded to the CPS. The CPS writes off specific costs awards when HMCTS considers the debts will not be collected. A proportion of the remaining income will not be collected and the CPS recognises a loss allowance equal to lifetime expected credit losses. The allowance provided against costs awards receivable is based on a financial model utilising historical data relating to the total costs awarded in court and the amount of cash actually received.

In accordance with IFRS 9 – Financial Instruments, the CPS assesses expected credit losses on its financial assets. If material, the CPS recognises a loss allowance for impairment of trade and other receivables. Assessment of expected credit losses includes an analysis of historic rates of default and amounts lost in the event of default, which are used to estimate the likelihood of such losses occurring in future.

As required by the FReM, the CPS adopts the simplified approach for impairment of trade receivables, contract assets and lease receivables and does not recognise loss allowances for stage 1 and stage 2 impairments of receivables with other central government departments (including their executive agencies).

1.9. Operating Income

Operating income is income that relates directly to the operating activities of the CPS. Operating income is stated net of VAT.

The CPS receives awards of costs made against convicted defendants at the discretion of the judge or magistrates. In order to account for costs awards, the CPS uses returns submitted quarterly by the magistrates’ courts, which are responsible for the collection of these costs. Income is recognised based on the date when the court awards costs.

Under the Proceeds of Crime Act’s ‘Asset Recovery Incentivisation Scheme’, which is managed by the Home Office, the CPS is allocated a proportion of the total value of assets recovered in the year. For confiscation orders, receipts are shared between the Home Office and investigation, prosecution and enforcement agencies, with the CPS being entitled to an 18.75% share of total receipts. Income is recognised when the Home Office receives recovered amounts and confirms how these will be allocated to eligible bodies, which is the point at which it becomes probable that economic benefits will flow to the CPS and at which these can be measured reliably.

Where relevant, the CPS recognises revenue from contracts with customers. This includes income in respect of seconded staff and provision of legal and other services.

1.10. Government Grants

The CPS benefits from government funding for apprenticeship training, financed by the Apprenticeship Levy. Under the terms of the Government’s apprenticeship arrangements, the CPS has an account holding funds based on its levy payments, which it can access to pay for apprenticeship training. When these funds are drawn down, the CPS recognises government grant income along with a corresponding training expense. As payments are made directly from the apprenticeship account to approved training providers, the income and expense recognised are non-cash in nature.

The CPS may also be eligible to receive cash incentive payments where it employs apprentices aged between 16 and 18 years. Such payments are recognised as government grant income.

Other amounts that the CPS receives from government bodies, where these are not in payment for services delivered, are recognised as government grant income in the same periods as the related expenses.

Government grant income is presented on a gross basis, separate from related expenses.

1.11. Expenditure

Very High Cost Cases (VHCC) are expected to last in excess of 40 days (or have three or more trial counsel instructed). Counsel are required to submit invoices covering work done when pre-determined stages in the case are reached and expenditure is recognised on an accruals basis at the completion of each stage.

Counsel fees in the majority of Crown Court cases which are those expected to last for 40 days or less are paid through the CPS ‘Graduated Fee Scheme’. The scheme calculates fees taking into account a range of set cost factors including the number of defendants, type of counsel, volume of evidence, number of witnesses and length of trial. Where actual counsel fees for trials completed at the financial year end can be ascertained, they have been accrued for on this basis; in all other cases the CPS accrues an estimate of such counsel fees outstanding. For trials partially completed at the financial year end, it is not possible to ascertain the precise value owed for counsel fees until some considerable time later.

The CPS therefore accrues an estimate of the fees likely to have been incurred.

1.12. Short Term Employee Benefits

Salaries, wages and employment related benefits are recognised in the period in which the service is received from employees. Annual leave earned but not taken by the year end is recognised on an accruals basis in the financial statements. Non-consolidated performance pay is recognised when it becomes payable to the individual.

1.13. Pensions

Past and present employees are covered by the provisions of the Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS).

These schemes are unfunded, defined benefit schemes covering all civil servants. The schemes are not designed in a way that would enable employers to identify their share of the underlying scheme assets and liabilities, and they are therefore accounted for as though they were defined contribution schemes.

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 Civil Service Pensions schemes of amounts calculated on an accruing basis. Liability for payment of future benefits is a charge on the Civil Service Pensions schemes. For Civil Service defined contribution schemes, the CPS recognises the contributions payable for the year.

1.14. Provisions

The CPS provides for legal or constructive obligations, which are of uncertain timing or amount, at the date of the Statement of Financial Position, on the basis of the best estimate of the expenditure required to settle the obligation.

In accordance with IFRS 16, the CPS capitalises provisions for dilapidations on leased assets as part of the right-of-use asset. Capitalised amounts are depreciated over the life of the right-of-use asset. Movements in other provisions are recognised as an expense.

Where the effect of the time value of money is significant, the estimated risk-adjusted cash flows are discounted using the nominal rates set by HM Treasury. As at 31 March 2022, the discount rates for general provisions were 0.47% (2020-21: -0.02%) for cash flows between 0 and 5 years, 0.70% (2020-21: 0.18%) for cash flows between 5 and 10 years, 0.95% (2020-21: 1.99%) for cash flows between 10 and 40 years, and 0.66% (2019-20: 1.99%) for cash flows exceeding 40 years. The estimated cash flows are adjusted for inflation using OBR CPI.

1.15. Contingent Liabilities and Contingent Assets

A contingent liability is disclosed in the financial statements unless the possibility of a payment is remote. Where the time value of money is material, contingent liabilities are stated at discounted amounts. Where remote liabilities are required to be reported to Parliament, these are noted separately in the Parliamentary accountability and audit report.

A contingent asset is only disclosed if an inflow of economic benefits is considered probable.

1.16. Value Added Tax

Most of the activities of the CPS 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 assets. Where output tax is charged or input tax is recoverable, the amounts are stated net of VAT.

1.17. New or amended standards issued but not yet effective and not adopted early

IFRS 17 Insurance Contracts

IFRS 17 sets out requirements for the recognition and measurement of contracts and associated revenue where an entity accepts insurance risk from another party. The CPS has not entered into insurance contracts and does not currently expect to be affected by the new standard.

IFRS 17 is currently applicable for reporting periods beginning from 1 January 2023. The standard, including the date from which it is expected to be applicable in the public sector, is subject to further review by HM Treasury.

1.18. Areas of judgement and key sources of estimation uncertainty

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and the reported amounts of income and expense during the period. Actual results could differ from these estimates. Information about these judgements and estimations is detailed below.

Graduated Fees Scheme (GFS) accruals

The system for managing and paying counsel fees in Areas and Casework Divisions is complex and there is a lengthy chain between case initiation and payment of fees at the conclusion of the case, which involves many individuals. This means that generating an accurate counsel fee accrual relies on data sent from a number of financial and non financial sources.

The overall GFS accruals figure is informed by trend analysis of expenditure from prior periods, caseload volumes and a detailed assessment of a number of variables that tend to increase or decrease total expenditure on fees. The average payables days is calculated and compared to the reported accrual returns from Areas and Central Casework Divisions. This figure is used to adjust over and under accruals for each operational area and provides an accurate overall Departmental accrual. The accuracy of the adjustment relies on historical patterns of payment continuing into the future.

Additionally, the CPS estimates an accrual for trials that are not completed at the financial year end. Since the data required to accurately assess counsel fees for these trials is not available until some considerable time after the year end, the CPS uses data from the previous financial year end to estimate the amount of fees likely to have been incurred. This estimate is based on the assumption that allotted trial days occur immediately before the final hearing date, and that the level of activity is consistent from one year to the next.

The carrying amount of the GFS accrual at 31 March 2022 was £9,052 million (31 March 2021: £9.111 million).

Allowance for impairment of receivables – Costs Awards

The CPS receives awards of costs made against convicted defendants at the discretion of the judge or magistrates. The CPS is informed of the level of costs awarded in court by HMCTS and accounts for the corresponding receivables. HMCTS then pays over the cash collected, which reduces the receivable balance.

A number of these costs awarded may never be collected, for example when the individual has left the country or has died. HMCTS writes off irrecoverable debts as and when they become apparent and informs the CPS of the amounts written off. Additionally, the CPS recognises an allowance for impairment of the outstanding receivables to reflect the fact that a proportion of these will not be recovered. This impairment is based on historical information on rates of collection and relies on the assumption that similar rates will apply in future.

The impairment methodology assumes that all receivable amounts that are not forecast to be received in the future based on historical rates of collection will ultimately be irrecoverable. The forecast cash flows are discounted using the HM Treasury rate for financial instruments of 1.9%.

The carrying amount of the allowance for impairment of costs award receivables at 31 March 2022 was £43.8 million (31 March 2021: £43.6 million).

Dilapidations

The CPS has entered into a number of rental agreements for the properties it occupies. Most of these agreements include clauses requiring the CPS, at the end of the rental period, to return the property to the landlord in its original state or to pay the landlord the cost of any necessary work to achieve this (“dilapidations”). The CPS therefore provides for the cost of removing any modifications it makes and repairing any damage or wear occurring during its tenancy.

On 29 May 2020, the CPS transferred responsibility for its property portfolio to the Government Property Agency (GPA). Under this arrangement, GPA assumes responsibility for the head lease for each property occupied by the CPS and sub-leases these properties to the CPS under Terms of Occupancy Agreements (TOA).

In 2020-21, the CPS applied GPA’s estimates of dilapidations liabilities for the properties it occupies, and recognised a provision accordingly. For 2021-22, the CPS was not sufficiently confident that the same approach would result in an estimate that provided a true and fair view of the liability that the CPS would be likely to incur. The CPS has therefore reverted to using its own estimates of dilapidations liabilities. These are based on historic costs per square metre for properties vacated previously as well as current information about properties due to be vacated in the near future, and rely on the assumption that over the whole property portfolio historic information provides a reasonable guide to future costs. The CPS considers this to be a change in estimate rather than a change in accounting policy, and has therefore not restated prior year comparatives.

The carrying amount of the dilapidations provision at 31 March 2022 was £5.089 million (31 March 2021: £7.362 million).

Impact of COVID-19 on allowance for impairment of Costs Awards receivables

The COVID-19 pandemic impacted negatively on the economy and personal incomes, raising uncertainty over the recoverability of receivables.

The CPS recognises an allowance for impairment of receivables for awards of costs on an expected losses basis. This allowance is estimated by analysing historic rates of collection and using them to predict future recoveries. Since this assumes that similar rates of recovery will continue to apply in future, the effect of COVID-19 may have required this estimate to be adjusted. The need for this could have arisen from a higher overall level of non-payment or from payments being received later than originally expected.

Following the start of the pandemic in 2020, there was a significant reduction in the level of income recognised for costs awards. This was primarily due to initial restrictions on the ability of courts to operate, leading to fewer cases being processed.

Similarly, the initial stages of the pandemic affected the amount of cash collected from defendants in respect of previous costs awards. This will have been due to a variety of reasons, including the ability of courts to operate effectively and collect debts, and hardship or uncertainty arising from the pandemic affecting the ability or willingness of debtors to make payments.

Analysis at the end of 2020-21 showed that income and cash receipts were returning to normal levels, and that the most severe impacts of the pandemic had already passed. This is supported by data for 2021-22, which shows income and receipts returning to close to pre-pandemic levels. Costs awards income for 2021-22 was £29.8 million, compared with £29.8 million in 2019-20, whilst cash receipts for 2021-22 were £26.9 million, compared with £29.6 million in 2019-20. Data for impositions and receipts during the pandemic period have been fed into the loss allowance estimation model, but have not significantly affected the calculated rates of collection. The model therefore does not predict a significantly higher rate of non-payment in the future, and the loss allowance has increased slightly from £43.6 million in 2021-21 to £43.8 million in 2021-22. This evidence indicates that the existing methodology has continued to provide a reliable estimate of future losses through the pandemic period.

1.19. Initial application of IFRS 16

IFRS 16 is applicable for reporting periods beginning from 1 January 2019. Due to the ongoing COVID-19 pandemic, HM Treasury delayed mandatory application of IFRS 16 by government departments until 1 April 2022. However, the FReM permits departments to opt to apply the standard a year earlier and the CPS has received approval for this from HM Treasury. The CPS has therefore applied IFRS 16 from 1 April 2021.

HM Treasury has withdrawn the accounting policy choice to apply IFRS 16 retrospectively to each prior reporting period presented in accordance with IAS 8. At the date of initial application, therefore, the CPS has recognised the cumulative effect of initially applying IFRS 16 as an adjustment to the opening balance of taxpayers’ equity.

HM Treasury has also withdrawn the option to reassess whether a contract is, or contains, a lease at the date of initial application. The CPS therefore initially applied IFRS 16 to any contracts previously identified as a lease, or containing a lease, under IAS 17 and did not apply IFRS 16 to any contracts not previously identified as such. The following leased assets were identified in this way:

1. Land and buildings – The CPS leases office accommodation throughout its estate, primarily through the Government Property Agency. Under IAS 17, these contracts were treated as operating leases.
2. Vehicles – The CPS leases vehicles in some of its Areas for the purpose of transporting documents and other items. Under IAS 17, these contracts were treated as operating leases. On transition to IFRS 16, no such vehicles had a remaining lease term over 12 months, and the leases were therefore treated as short term.
3. Multi-Function Devices (MFDs) – The CPS leases MFDs across its estate to provide printing, scanning and copying functionality. Under the contract in force on 1 April 2021, the pricing model for the majority of these devices was on a usage driven ‘per click’ basis with no minimum charges. Under IAS 17, these devices were treated as operating leases with zero minimum lease rental. Additionally, some MFDs were outside the ‘per click’ model and subject to a fixed charge. On transition to IFRS 16, these leases were treated as short term leases as the contract was expected to end within 12 months.

In accordance with the FReM, the CPS has not recognised any assets or liabilities for leases where the underlying asset is of low value, and has made no adjustment for such leases. Similarly, the CPS has not recognised any assets or liabilities for leases of 12 months or less, and has made no adjustment for leases ending within 12 months of initial application of IFRS 16.

On initial application of IFRS 16, the CPS has recognised right-of-use assets at an amount equal to the initial lease liability, adjusted by the amount of any prepaid or accrued lease payments recognised immediately before the date of initial application. The initial lease liability has been calculated based on the present value of future cash flows for each lease over the applicable lease term determined in accordance with the new standard.

As required by the standard, provisions for dilapidations on leased properties, where a right‑of‑use asset has been recognised, are capitalised as part of the asset value. On initial application of IFRS 16, the value of existing dilapidations provisions has been included in initial right-of-use asset values through an adjustment to the opening balance of taxpayers’ equity.

The CPS has recognised the following opening balances in 2021-22:

2. Statement of Operating Costs by Operating Segment

The CPS is organised for management purposes into operational Areas and a number of corporate units. For financial reporting purposes, the segment reporting format is determined based on the way in which financial information is presented to the senior decision makers (the Chief Executive Officer and the Executive Group) for monitoring performance and allocating resources.

The following table presents the operating expenditure by reportable operating segment. Income is primarily managed centrally so is reported as a single segment. Although many of the operating units are regionally defined, this does not represent a geographical analysis of expenditure because some regional expenditure is managed and reported by centralised units, which operate on a national basis.

3. Expenditure

Further analysis of staff costs is located in the Remuneration and staff report.

4. Income

5. Property, plant and equipment

As described in Note 1.3, all freehold land and buildings were transferred to the Government Property Agency on 29 May 2020.

5.1. Reconciliation of additions and disposals to cash flows from investing activities shown in the Statement of Cash Flows

5.2. Impairments

6. Right-of-use assets

Right-of-use assets represent the right to direct the use of an underlying asset arising as a result of a lease. The CPS does not own the underlying asset, but recognises the value of the right of use in accordance with IFRS 16.

6.1. Leases

The CPS is also committed to cash flows in respect of a short-term lease for the current print contract. The estimated cash flows in 2022-23 in respect of this lease total £365,000.

7. Intangible assets

Intangible assets comprise Case Management System (CMS) software.

Intangible assets are stated at cost less accumulated amortisation.

Additions in 2021-22 comprise of investment in CMS for which no amortisation has been charged as this is currently in the development phase. Amortisation charged in year relates to the brought forward CMS asset.

8. Financial Instruments

As the cash requirements of the CPS are met through the Estimates process, financial instruments play a more limited role in creating and managing risk than would apply to a non-public sector body of a similar size. The majority of financial instruments relate to contracts for non-financial items in line with the CPS’ expected purchase and usage requirements and the CPS is therefore exposed to little credit, liquidity or market risk.

8.1. Fair value and carrying amount of cost awards receivable

The CPS recognises a receivable for awards of costs made in court against convicted defendants. Due to the nature of this receivable, it is expected that full recovery will not be made in all cases, and the CPS recognises an allowance for impairment of the receivable to the net present value of the estimated future flow of repayments, discounted at the Treasury rate of 1.9% (2019-20: 3.7%). This impaired carrying amount represents fair value. In 2021-22, the value of the net receivable was £26.250 million.

The impairment is calculated on the assumption that future recovery rates will reflect historic experience. As a result, there is inherent uncertainty in the estimation of the provision. The future financial impact of the COVID-19 pandemic is not fully known. As discussed in Note 1.18, the initial effect of the pandemic was to reduce both income and cash receipts, due to reductions in new impositions and the ability of defendants to pay, but these are now returning to more normal levels.

The following sensitivity analysis demonstrates the potential impact on the receivable balance of changes in the assumption of recovery rates by 5% and 10% in either direction.

9. Trade and other receivables

9.1. Reconciliation of movement in cost awards net receivable

The allowance for impairment is based on a forecast of future cash flows, using historic receipts data, discounted at the HM Treasury rate of 1.9% for financial instruments.

10. Cash and cash equivalents

10.1. Reconciliation of liabilities arising from financing activities

11. Trade and other payables

12. Provisions for liabilities and charges

Analysis of expected timing of discounted flows 2021-22 

Analysis of expected timing of discounted flows 2020-21 

Dilapidations

The dilapidations provision relates to dilapidation claims served by landlords at the expiry of a lease on a property occupied by the CPS. A provision is made against all anticipated dilapidation claims at a rate per square metre which reflects actual dilapidations, discounted to reflect the time value of money.

Other provisions

Other provisions comprise outstanding compensation claims for personal injury, employment tribunal and civil legal claims. In respect of compensation claims, provision has been made for the litigation against the CPS. 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 where the amount of the claim can be reliably estimated.

Legal claims which may succeed but are less likely to do so or cannot be estimated are disclosed as contingent liabilities in Note 13.

13. Contingent assets and liabilities

As at 31 March 2022 the CPS was involved in 6 personal injury claims and 6 employment tribunal cases in addition to those for which a provision has been made (note 12). Of these, 6 personal injury claims may result in settlements totalling £741,000 and 6 employment tribunal cases may result in settlements totalling £127,000.

As at 31 March 2022 the CPS also had 7 additional contingent liabilities in respect of civil cases which may result in settlements totalling £63,000.

It is not possible to estimate the value of the remaining contingent liability.

14. Other financial commitments

The CPS has entered into non-cancellable contracts (which are not leases, PFI contracts or other service concession arrangements), predominantly for ICT services and software.

The payments to which the CPS is committed are as follows:

15. Related-party transactions

The CPS has close working relationships with all agencies within the criminal justice system and particularly with HM Courts and Tribunals Service (HMCTS), their ultimate controlling party being the Ministry of Justice. HMCTS is regarded as a related party with which the CPS has had material transactions, being mainly cost awards collected by HMCTS acting as an agent for the CPS (see Note 4) less amounts written off (or written back) (see Note 3).

In addition the CPS has had material transactions with a number of other government departments and agencies, including the Government Property Agency.

No Board Member, key manager or other related party has undertaken any material transactions with the CPS during the year. Remuneration paid to Board Members is disclosed in the Remuneration and staff report.

16. Events after the reporting period

In accordance with the requirements of IAS 10, events after the reporting period are considered up to the date on which the accounts are authorised for issue. This is interpreted as the date of the Certificate and Report of the Comptroller and Auditor General.

There have been no events after the reporting period requiring disclosure.