Corporate report

Annual report and accounts 2022-23: Annexes (HTML)

Updated 15 December 2023

This was published under the 2022 to 2024 Sunak Conservative government

Applies to England and Wales

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Annex A: Other notes to the Statement of Parliamentary Supply

This section is subject to audit.

SOPS 3. Reconciliation of Net Resource Outturn to Net Cash Requirement

2022-23
    Outturn Estimate Net total outturn compared with Estimate: saving/(excess)
  Note £000 £000 £000
Net Resource Outturn SOPS 1.1 10,202,110 10,879,911 677,801
Capital Outturn SOPS 1.2 1,365,445 1,480,869 115,424
Accruals to cash adjustments:        
Adjustments to remove non-cash items:        
Depreciation and amortisation   (788,577) (1,133,208) (344,631)
New provisions and adjustments to previous provisions   (2,016,861) (499,423) 1,517,438
Other non-cash items   60,932 - (60,932)
Adjustments for Non-Departmental Public Bodies (NDPBs):        
Remove voted resource and capital   (343,191) (354,275) (11,084)
Add cash Grant in Aid   288,031 309,917 21,886
Adjustments to reflect movements in working balances:        
Increase / (decrease) in receivables   (42,696) - 42,696
Increase / (decrease) in inventories   10,085 - (10,085)
(Increase) / decrease in payables   (157,041) 325,000 482,041
(Increase) / decrease in financial liabilities   142,195 - (142,195)
Use of provisions   2,047,896 146,310 (1,901,586)
Removal of non-voted items:        
Consolidated Fund Standing Services   (171,583) (164,131) 7,452
OLC and LSB non-voted levy income   19,390 - (19,390)
Other adjustments   - 19,604 19,604
Net cash requirement   10,616,135 11,010,574 394,439

As noted in the introduction to the SOPS above, outturn and the Estimates are compiled against the budgeting framework, not on a cash basis. This reconciliation therefore bridges the resource and capital outturn to the net cash requirement. The net cash requirement calculation only applies to the core department and executive agencies.

SOPS 4. Income payable to the Consolidated Fund

In addition to income retained by the department, the following income relates to the department and is payable to the Consolidated Fund (cash receipts being shown in italics).

Outturn
2022-23		 Outturn
2021-22
  Income Receipts Income Receipts
  £000 £000 £000 £000
Income outside the ambit of the estimate 1,552 1,552 2,820 2,820
Levy income of OLC and LSB within the ambit of the estimate 19,390 19,390 17,804 17,804
Total income payable to the Consolidated Fund 20,942 20,942 20,624 20,624

The department also collects fines and penalties imposed by the judiciary and police; however, these are excluded from the income reported here and are reported separately in the HMCTS Trust Statement.

Annex B: Public expenditure core financial tables

The Core Tables represent expenditure for resource and capital, set for each year in the Spending Review process (amended to incorporate transfers of functions to other government departments as they have arisen). These tables are not reported on the same basis as the financial statements disclosures, with differing categories and headings.

The Core Tables are produced automatically from the HM Treasury System (Online System for Central Accounting and Reporting (OSCAR)) which is used by all central government departments to record their spending and plans. At 31 March 2023, OSCAR reflects the position agreed at Budget 2022. This won’t match the outturn in previous years’ financial statements and some spending may also appear on different lines, this may frequently result in restatement of the previous years’ core table figures.

Table 1 Total departmental spending (£000)

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
  Restated Outturn
[footnote 1] 		Outturn Restated Outturn Outturn Outturn Outturn Plans
Resource DEL              
Policy, Corporate Services and Associated Offices 123,413 141,570 (36,628) 566,838 704,139 810,027 799,378
HM Prison and Probation Service 3,709,003 4,021,404 4,170,755 4,599,619 4,241,015 4,642,263 5,157,674
HM Courts and Tribunals Service 1,576,656 1,662,392 1,834,627 1,865,942 2,039,906 2,117,191 2,103,147
Legal Aid Agency 1,680,067 1,715,014 1,746,141 1,550,239 1,787,143 1,912,249 2,184,206
Criminal Injuries Compensation Authority 148,812 121,365 206,512 165,837 170,237 167,391 153,025
Office of The Public Guardian (12,299) (13,952) (14,069) 1,512 (2,552) (8,338) (10,996)
Children and Family Court Advisory and Support Service (net) 119,414 119,758 129,950 130,013 139,784 143,070 148,442
Criminal Cases Review Commission (net) 5,240 5,262 5,765 6,392 6,972 7,361 7,862
Judicial Appointments Commission (net) 4,852 7,029 6,988 7,274 7,730 8,777 8,930
Legal Services Board (LSB) (net) 3,470 3,725 3,774 3,906 4,099 4,255 4,694
Office for Legal Complaints (OLC) (net) 12,240 13,228 12,351 13,151 13,757 15,056 16,878
Parole Board (net) 17,544 16,855 18,427 20,360 21,507 23,139 27,062
Youth Justice Board (net) 104,755 84,634 83,407 86,312 93,804 100,884 114,179
Independent Monitoring Authority for the Citizens’ Rights Agreements (net) - - - 1,964 4,011 4,826 5,773
Oasis Restore Trust - - - - - - 5,250
Government Facility Services Limited - - (24) (692) (360) (162) -
Higher Judiciary Judicial Salaries 148,407 153,988 159,886 163,898 163,084 171,601 174,725
OLC/LSB Levy CFER (14,480) (15,695) (25,728) (17,067) (17,804) (19,390) (21,462)
Total Resource DEL 7,627,094 8,036,577 8,302,134 9,165,498 9,376,472 10,100,200 10,878,767
Of which:              
Staff costs 3,333,741 3,811,703 4,011,613 4,398,670 4,785,069 5,231,542 5,248,366
Purchase of goods and services 4,763,208 4,747,172 5,053,486 4,855,394 5,051,442 5,197,272 6,056,642
Income from sales of goods and services (723,609) (685,386) (441,310) (69,287) (72,237) (79,242) (1,245,619)
Other income - - - (563,625) (637,542) (670,354) (461,897)
Current grants to local government (net) 180,230 138,137 142,359 182,388 198,162 234,042 252,772
Current grants to persons and non-profit bodies (net) - 31,909 29,799 43,135 49,970 57,106 62,811
Rentals 745,283 733,856 116,404 754,638 665,780 724,915 24,571
Depreciation[footnote 2] 492,519 534,706 470,052 598,957 717,143 803,968 901,743
Other resource (1,164,278) (1,275,520) (1,080,269) (1,034,772) (1,381,315) (1,399,049) 39,378
Resource AME[footnote 1]              
Policy, Corporate Services and Associated Offices (55,692) 93,576 (1,773,220) (34,865) 119,815 33,780 200,065
HM Prison and Probation Service 84,351 125,009 1,862,813 63,648 104,637 13,654 201,000
HM Courts and Tribunals Service (44,498) 20,519 38,232 23,678 69,436 (97,907) 80,300
Legal Aid Agency 18,401 33,795 (7,479) 89,133 39,570 122,684 (9,000)
Criminal Injuries Compensation Authority 33,175 35,492 (12,648) (4,544) (10,613) 4,506 9,000
Office of the Public Guardian (64) (78) 220 4,418 (29) (838) 200
Children and Family Court Advisory and Support Service (net) 10,054 10,456 14,014 16,271 26,925 25,375 -
Criminal Cases Review Commission (net) 186 156 182 117 (73) 304 1
Parole Board (net) (1,144) (42) 104 (141) 31 167 1
Youth Justice Board (net) 398 (398) 62 100 (54) (45) 1
Judicial Appointments Commission (net) - - - - 10 (4) -
Legal Services Board (LSB) (net) - - - 74 (74) - -
Office of Legal Complaints (OLC) (net) 30 (50) 12 24 - 72 -
Government Facility Services Limited - - 93 730 360 162 -
Total Resource AME 45,197 318,435 122,385 158,643 349,941 101,910 481,568
Of which:              
Staff costs - - - - - - -
Net public service pensions[footnote 3] - - 168 - - - 150
Depreciation[footnote 2] (65,616) 48,492 87,712 62,744 95,663 (12,231) 290,400
Take up of provisions 1,924,749 2,011,770 1,928,438 1,740,200 2,045,971 2,010,847 246,267
Release of provision (1,983,927) (1,872,492) (1,941,284) (1,724,849) (1,985,172) (2,048,096) (55,249)
Change in pension scheme liabilities - 217,081 - 219,073 370,991 342,292 -
Other resource 169,991 (86,416) 47,351 (138,525) (177,512) (190,902) -
Total Resource Budget 7,672,291 8,355,012 8,424,519 9,324,141 9,726,413 10,202,110 11,360,335
Of which:              
Depreciation[footnote 2] 426,903 583,198 557,764 661,702 812,806 791,737 1,192,143
Capital DEL              
Policy, Corporate Services and Associated Offices 212,555 203,554 164,963 272,558 426,544 350,777 281,170
HM Prison and Probation Service 83,460 68,346 190,793 502,217 496,903 784,489 1,847,718
HM Courts and Tribunals Service 111,322 169,869 133,073 287,920 483,338 210,191 175,459
Legal Aid Agency 265 451 2 491 3,416 3,443 173
Criminal Injuries Compensation Authority 1,340 557 898 1 104 57 100
Office of The Public Guardian 2,332 2,322 100 (47) 8,295 926 100
Children and Family Court Advisory and Support Service (net) 697 - - 449 658 8,664 1,500
Criminal Cases Review Commission (net) 122 125 220 659 455 35 215
Judicial Appointments Commission (net) 147 - 750 513 117 - 1
Legal Services Board (LSB) (net) - - 368 21 10 12 74
Office for Legal Complaints (OLC) (net) 371 129 60 245 145 299 250
Parole Board (net) 915 9 98 421 235 246 140
Youth Justice Board (net) 941 440 600 729 598 637 600
Independent Monitoring Authority for the Citizens’ Rights Agreements (net) - - - - 40 61 1
Government Facility Services Limited - - - 401 - - -
Total Capital DEL 414,467 445,802 491,925 1,066,578 1,420,858 1,359,837 2,307,501
Of which:              
Purchase of goods and services - - 4,782 - - - 3,960
Capital support for local government (net) 4,180 16,572 - 1,754 (1) 10,537 -
Purchase of assets 446,189 517,287 548,387 1,123,681 1,480,427 1,372,075 2,304,040
Income from sales of assets (56,345) (94,181) (59,077) (5,425) (7,231) (30,075) (2,999)
Other capital 20,443 6,124 (2,167) (53,432) (52,337) 7,300 -
Capital grants income - - - - - - 2,500
Capital AME              
Policy, Corporate Services and Associated Offices - - - - 3,555 4,896 21,802
HM Prison and Probation Service - - - - 1,340 - -
HM Courts and Tribunals Service - - - - 3,919 (270) 1,500
Legal Aid Agency - - - - 90 251 -
Criminal Injuries Compensation Authority - - - - - 395 -
Office of the Public Guardian - - - - 1,222 336 -
Children and Family Court Advisory and Support Service (net) - - - - 393 - 1
Criminal Cases Review Commission - - - - 27 - -
Total Capital AME - - - - 10,546 5,608 23,303
Total Capital 414,467 445,802 491,925 1,066,578 1,431,404 1,365,445 2,330,804
Total departmental spending[footnote 4] 7,659,855 8,217,616 8,358,680 9,729,017 10,345,011 10,775,818 12,498,996
Of which:              
Total DEL[footnote 4] 7,549,042 7,947,673 8,324,007 9,633,118 10,080,187 10,656,069 12,284,525
Total AME[footnote 4] 110,813 269,943 34,673 95,899 264,824 119,749 214,471

Section headings are based on 2022-23 Supplementary Estimate headings.

Table 2 Administration costs (£000)

Section headings are based on 2022-23 Supplementary Estimate headings.

2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
  Restated Outturn
[footnote 1] 		Outturn Restated Outturn Outturn Outturn Outturn Plans
Policy, Corporate Services and Associated Offices 289,215 294,423 299,414 350,763 369,735 404,389 453,379
HM Prison and Probation Service 98,388 62,043 52,931 19,516 24,091 24,999 24,199
HM Courts and Tribunals Service 20,266 17,171 19,487 19,636 20,288 21,912 22,522
Legal Aid Agency 24,465 20,208 20,574 19,456 16,468 13,894 15,188
Criminal Injuries Compensation Authority 4,857 2,293 2,401 2,063 770 (685) (554)
Office of the Public Guardian 56 58 63 63 67 74 34
Children and Family Court Advisory and Support Service (net) 6,046 5,219 (59) 5,295 5,192 5,412 5,596
Criminal Cases Review Commission (net) 596 654 918 751 715 778 691
Judicial Appointments Commission (net) 354 276 375 399 434 717 437
Legal Services Board (net) - - - - 1 - -
Parole Board (net) 1,190 911 1,085 998 982 3,157 3,671
Youth Justice Board (net) 4,244 2,958 2,854 3,255 3,094 3,610 3,204
Independent Monitoring Authority for the Citizens’ Rights Agreements (net) - - - 1,362 2,542 2,963 3,426
Higher Judiciary Judicial Salaries 75 76 - 76 89 109 -
Total Administration 449,752 406,290 400,043 423,633 444,468 481,329 531,793
Of which:              
Staff costs 295,467 259,244 267,705 284,053 312,538 349,749 329,204
Purchase of goods and services 129,388 137,936 118,346 133,292 137,186 149,547 153,200
Income from sales of goods and services and other income (14,714) (36,732) (13,807) (47,642) (46,187) (47,287) -
Current grants to local government (net) - - - - - - (28,636)
Current grants to persons and non-profit bodies (net) - - 88 - - - 191
Rentals 18,704 23,502 (1,673) 24,741 5,755 6,980 2,403
Depreciation[footnote 2] 19,512 20,625 31,470 27,189 33,629 32,506 48,820
Other resource 1,395 1,715 (2,086) 2,000 1,547 (10,166) 26,611

Annex C: Information on arm’s length bodies

The department is required to report total operating income, total operating expenditure and net expenditure for the year and staff numbers and costs for each component ALB.[footnote 5] The table below includes the final consolidated figures in the department’s accounts including adjustments and intragroup eliminations. As a result of adjustments on consolidation, the annexed figures may not agree directly to the published ALB accounts.

Permanently employed staff Other staff
  Total operating income Total operating expenditure Net expenditure for the year (including financing) Number of employees Staff costs Number of employees Staff costs
  £000 £000 £000   £000   £000
Children and Family Court Advisory and Support Service (1,953) 170,398 168,445 2,066.0 133,863 195.0 7,221
Youth Justice Board (148) 102,577 102,429 99.0 5,742 5.0 487
Parole Board - 24,245 24,245 186.0 7,712 8.0 12,261
Judicial Appointments Commission - 9,457 9,457 92.0 4,834 30.0 2,072
Criminal Cases Review Commission (6) 7,671 7,665 94.5 5,318 - 440
Independent Monitoring Authority - 5,335 5,335 50.0 3,045 6.0 493
Legal Services Board (4,267) 4,260 (7) 35.2 2,632 - 517
Gov Facility Services Limited (149,581) 149,581 - 1,499.0 59,853 312.0 1,430
Office of Legal Complaints (15,552) 15,552 - 271.0 11,421 6.0 428

All tabled information was correct and accurate as at the approval date of the accompanying annual report and accounts. Staff numbers are presented by the average number of Full Time Equivalent. The costs of non-salaried board members, panel members and commissioners of ALBs are included in other staff costs above but there is no corresponding FTE figure assigned against these individuals because it would not be appropriate to do so.

Annex D: Off-payroll engagements

Highly paid off-payroll worker engagements as at 31 March 2023, earning £245 per day or greater

HQ HMPPS HMCTS LAA OPG CICA Cafcass OLC Parole Board CCRC JAC LSB YJB GFSL IMA Total
Number of existing engagements as of 31 March 2023 463 14 69 1 15 - - - - - - - - - 6 568
Of which:                                
Number that have existed for less than one year at time of reporting 355 9 39 1 13 - - - - - - - -   6 423
Number that have existed for between one and two years at time of reporting 92 3 21 - 2 - - - - - - - -   - 118
Number that have existed for between two and three years at time of reporting 16 1 5 - - - - - - - - - -   - 22
Number that have existed for between three and four years at time of reporting - 1 1 - - - - - - - - - -   - 2
Number that have existed for four or more years at time of reporting - - 3 - - - - - - - - - - - - 3

All highly paid off-payroll workers engaged at any point during the year ended 31 March 2023, earning £245 per day or greater

HQ HMPPS HMCTS LAA OPG CICA Cafcass OLC Parole Board CCRC JAC LSB YJB GFSL IMA Total
Number of temporary off-payroll workers engaged during the year ended 31 March 2023 705 31 160 2 44 - - -   - - - - - 7 949
Of which:                               -
Not subject to off-payroll legislation 693 24 154 2 42 - - -   - - - -   7 922
Subject to off-payroll legislation and determined as in-scope of IR35 11 1 1 - 2 - - - - - - - -     15
Subject to off-payroll legislation and determined as out-of-scope of IR35 1 6 5 - - - - - - - - - -   - 12
Number of engagements reassessed for compliance or assurance purposes during the year 477 18 113 1 22 - -     - - - -   5 636
Of which:                                
Number of engagements that saw a change to IR35 status following review - - - - - - - - - - - - - - - -

For any off-payroll engagements of board members, and/or, senior officials with significant financial responsibility, between 1 April 2022 and 31 March 2023

HQ HMPPS HMCTS LAA OPG CICA Cafcass OLC Parole Board CCRC JAC LSB YJB GFSL IMA Total
Number of off-payroll engagements of board members, and/or, senior officials with significant financial responsibility, during the financial year     1       -     -   -   -   1
Total number of individuals on payroll and off-payroll that have been deemed ‘board members and/or senior officials with significant financial responsibility’, during the financial year. This figure should include both on payroll and off-payroll engagements 13 10 12 9 6 2 4 2 6 10 11 5 24 6 4 124

Details of the exceptional circumstances that led to the above off-payroll engagements, and the duration of the engagement is as follows:

HMCTS: Since 23 March 2020 an interim Chief Information Officer has been engaged while the permanent role is being defined.

Annex E: Report by the Secretary of State on the use of powers under section 70 of the Charities Act 2006 for the year 2022-23

Section 70 of the Charities Act (“the Act”) sets out the powers for ministers to give financial assistance to charitable, benevolent, or philanthropic institutions and requires that payments made under this power are reported.

During 2022/23, the department awarded grants totalling £10,141,457 under the provisions of the Act. This spending does not represent the total amount of grant funding provided to the Voluntary and Community Sector, as many other grants have been paid to this sector under the powers conferred by alternative legislation.

The activities undertaken by various organisations which the department has funded are in line with the department’s aims and objectives.

The table below sets out the financial assistance provided by the Secretary of State under these powers for 2022/23.

Name of organisation (Recipient) Grant Name (Title) Amount £
Access to Justice Foundation Litigants in person support strategy 362,500
Access to Justice Foundation Cost of living legal support grant 1,000,000
Access to Justice Foundation Help accessing legal support (HALS) 3,200,000
Circles UK Circles UK: Provision and development of circles of accountability 131,930
JUSTICE Administrative Justice Council 58,163
National Association of Child Contact Centres National association of child contact centres (NACCC) 192,000
Reunite International Child Abduction Centre Reunite 118,000
StreetGames UK Youth justice sports fund 4,885,000
The Butler Trust The Butler Trust 125,000
The Citizenship Foundation Magistrates’ court mock trials competition 25,000
Citizens Advice Wirral Citizens advice bureau Wirral co-located advice hub project 43,864
Total   10,141,457

Annex F: Trade union facility time

The department is required, by the Trade Union (Facility Time Publication Requirements) Regulations 2017 which came into force on 1 April 2017, to disclose the number of hours spent on facility time by employees who are a relevant union official during the reporting period, which are paid by the department.

Facility time is recognised as the time an employee has spent on paid trade union activities where the employee has received wages from the department.

Table 1 Relevant union officials

The total number of employees who were relevant union officials during 2022-23.

Number of employees who were relevant union
officials during the relevant period		 Full-time equivalent
employee number
599 586.8

Table 2 Percentage of time spent on facility time

The number of employees who were relevant union officials employed during 2022-23, who spent
a) 0%, b) 1%-50%, c) 51%-99% or d) 100% of their working hours on facility time.

Percentage of time Number of employees
0% -
1-50% 599
51-99% -
100% -

Table 3 Percentage of pay bill spent on facility time

The percentage of the total pay bill spent on paying employees who were relevant union officials for facility time during 2022-23.

Total cost of facility time (£000) £2,611,659
Total pay bill (£000) £4,279,589,000
Percentage of the total pay bill spent on facility time, calculated
as: (total cost of facility time ÷ total pay bill) x 100		 0.06%

Table 4 Paid trade union activities

As a percentage of total paid facility time hours, the number of hours spent by employees who were relevant union officials during 2022-23 on paid trade union activities.

Time spent on paid trade union activities as a percentage of total paid facility time hours calculated as: (total hours spent on paid trade union activities by relevant union officials during the relevant period ÷ total paid facility time hours) x 100 0%

Annex G: Reconciliation between contingent liabilities reported in the Supply Estimate and those reported in the Annual Report and Accounts

Table 1 Quantifiable contingent liabilities

Supply Estimate* Annual Report and Accounts Variance
Description Entity £000 £000 £000
Employment tribunal claims HQ 520 6,085 (5,565)
Legal claims including judicial reviews challenging refusal to pay compensation for miscarriages of justice and legal aid funding HQ 662 430 232
Cases at the European Court of Human Rights HQ 800 500 300
Data protection claims HQ - 105 (105)
Personal injury claims by staff, prisoners and third parties HMPPS 120,000 45,200 74,800
Refund scheme for incorrect fees charged for low value personal injury claims HMCTS 10,460 9,775 685
Refund scheme for the Court of Protection, magistrates’ courts, insolvency and other fees which were charged in error or incorrectly set HMCTS 9,296 9,296 -
Employment tribunal refunds, following the UK Supreme Court judgment quashing the Employment Tribunals and Employment Appeal Tribunal Fees Order 2013/1893 HMCTS 13,854 13,817 37
Legal cases dealing with ex gratia, compensation and other claims HMCTS 1,274 800 474
Employment tribunal claims HMCTS 218 - 218
Compensation costs Parole Board - 63 (63)

*Supplementary Estimate, February 2023

Under the FReM, explanations are required for material variances:

  • the contingent liability disclosed for HQ for employment tribunal claims has increased significantly due to new evidence emerging during the course of on-going claims that has changed our assessment of whether a contingent liability exists and can be quantified and new cases being brought during 2022-23
  • the contingent liability disclosed for HMPPS for personal injury claims by staff, prisoners and the public and for third party contract disputes has decreased significantly due to the closure of one specific legal challenge in 2022-23

Table 2 Unquantifiable contingent liabilities

Description Entity Supply Estimate* Annual Report and Accounts
Alleged failure to comply with the Data Protection Act Cross-MoJ Yes No
Incidents Incurred But Not Yet Received (IBNYR): in respect of individuals who have been victims of violent crime but have not yet applied to CICA CICA Yes Yes
Offers of compensation not accepted within time limits CICA No Yes
Judicial claims for fee-paid judges sitting in retirement HMCTS No Yes
Judicial claims for discrimination between fee-paid and salaried judges HMCTS No Yes
Outstanding legal cases JAC No Yes
Outstanding legal cases OLC No Yes

Differences in treatment arise as follows:

  • MoJ is now disclosing a quantified contingent liability for claims for alleged failure to comply with the Data Protection Act
  • CICA’s unquantified contingent liability for compensation offers not accepted in time was considered immaterial when the 2022-23 Supply Estimates were being prepared: the accounts disclose an upper liability of £400,000
  • HMCTS has recognised a new unquantified contingent liability, which will be included in the 2023-24 Supply Estimates
  • the unquantified liabilities for JAC and OLC were considered too minor to include in the 2023-24 Supply Estimates, but are disclosed in the MoJ, JAC and OLC Annual Reports and Accounts for completeness

Table 3 Remote (non-IAS 37) contingent liabilities

Description Entity Supply Estimate* Annual Report and Accounts £000
Quantified        
Heathrow Airport Holdings Limited and other third-parties indemnity HMPPS No Yes 250,000
Unquantified        
Liability as underwriter of last resort to meet certain losses incurred by privately managed prisons HMPPS No Yes  
Local government pension scheme guarantee HMPPS No Yes  
Compensation cases at appeal stage under the jurisdiction of the First Tier Tribunal CICA No Yes  

Only contingent liabilities that meet the definition within IAS 37 - Provisions, contingent liabilities and contingent assets are included in the Supply Estimates.

Glossary

Accounting Officer   A person appointed by HM Treasury or designated by a department to be accountable for the operations of an organisation and the preparation of its accounts. The appointee is, by convention, usually the head of a department or other organisation, or the Chief Executive of a non-departmental public body.
Administration budget   A Treasury budgetary control that forms part of the resource Departmental Expenditure Limit (DEL). It is normally spent on the running costs of the department and its agencies, including back office staff and accommodation.
Annually Managed Expenditure AME A Treasury budgetary control. AME is spending included in Total Managed Expenditure, which does not fall within DEL. Expenditure in AME is generally less predictable and controllable than expenditure in DEL. AME is split between resource and capital expenditure.
Capital expenditure   Spending on assets and investment.
Cash Losses   Physical losses of cash and its equivalents which we have recorded receipt of (e.g. cheques, vouchers, credit cards, electronic transfers).
Cash Equivalent Transfer Value CETV The overall value, as calculated by an actuary, of an individual’s pension entitlement. This is the anticipated cost of providing the pension throughout retirement
Claims abandoned   Losses that may arise if claims are waived or abandoned because, though properly made, it is decided not to present or pursue them.
Consolidated Fund   The government’s current account, operated by HM Treasury
Consolidated Fund Extra Receipt CFER Income, or related cash, received by a department that it is not authorised to retain and which are surrendered/paid over to the consolidated fund.
Constructive Loss   A loss caused by a procurement action. For example, stores correctly ordered, delivered or provided, then paid for as correct; but later, perhaps because of a change of policy, they prove not to be needed or to be less useful than when the order was placed.
Departmental Expenditure Limit DEL A Treasury budgetary control. Annually voted expenditure which covers the day-to-day, planned, and controllable departmental expenditure. DEL is split between resource (RDEL) and capital expenditure (CDEL).
Estimate (or supply estimate)   Supply estimates are the means by which Parliament gives approval to (and grants resources for) departmental spending plans. The amount approved by Parliament is often termed ‘the Vote’. The resources granted in the Vote are specifically for the set of departmental operations covered under the ambits. The Vote also includes the net cash requirement.
Executive agency   A public body which, while being a separate entity to its parent/ sponsoring government department, is subject to significant control from the department and its ministers. Executive agencies usually have a narrow remit covering one policy area of the parent department.
Ex-gratia payments   Payments made when there is no legal obligation to do so. Ex-gratia payments go beyond statutory cover, legal liability, or administrative rules.
Extra-contractual claims   Also known as common law claims, are claims for damages for breach of contract.
Fees and charges   A department’s income generated from services where it is permitted to charge recipients for the service.
Financial Reporting Manual FReM The HM Treasury technical guide to accounts preparation for government bodies. www.gov.uk/government/publications/government-financial-reporting-manual-2022-23
Fruitless payment   A payment that cannot be avoided because the recipient is entitled to it even though the department will receive nothing of use in return.
Grant-in-aid GIA Grant provided to a body by government for a specific purpose. Most NDPBs are grant-in-aid funded.
Inland Revenue off-payroll tax IR35 The IR35 rules make sure that workers, who would have been an employee if they were providing their services directly to the client, pay broadly the same income tax and national insurance contributions as employees.
International Financial Reporting Standards IFRS The set of financial reporting standards adopted by the government, as adapted by the FReM. IFRS comprises International Accounting Standards (IAS) and IFRSs.
Managing Public Money MPM The HM Treasury guide for civil and other public servants containing the principles for dealing with public resources. www.gov.uk/government/publications/managing-public-money
Materiality   The threshold above which amounts in the financial statements affect the decisions of users of the accounts. The threshold is subject to judgement and may depend on value, nature (e.g. senior staff salaries are low in value, but of significant interest to readers of the accounts), or context.
National Audit Office NAO Office of the Comptroller and Auditor General, which audits accounts of government bodies and carries out value for money inspections within the bodies it audits. www.nao.org.uk
Net cash requirement NCR The limit voted by Parliament reflecting the maximum amount of cash that can be released from the consolidated fund to a department in support of expenditure in its estimate.
Non-departmental public body NDPB A body which is not an integral part of a department, and which operates at arm’s length from ministers (in contrast to an executive agency).
Other comprehensive income/expenditure   A section of the Statement of Comprehensive Net Expenditure which contains gains and losses which are not yet recognised in profit and loss (e.g. revaluations of non-current assets).
Private Finance Initiative PFI A means of funding public infrastructure or services by collaboration between the public and private sectors. Typically, a private sector contractor will build and operate an asset, which the public sector entity will use to deliver services for which it pays an annual charge.
Programme budget/expenditure   A department’s direct frontline delivery costs, including support costs directly associated with frontline service delivery.
Regularity   The principle that all consumption of resources should be made in accordance with the legislation authorising them, any applicable delegated authority and Managing Public Money.
Resource expenditure   The department’s resource budget, as voted by Parliament. Resource expenditure reflects the consumption of resources in that year.
Service concession arrangement SCA An arrangement whereby a public sector body contracts with a private operator to develop (or upgrade), operate and maintain the grantor’s infrastructure assets (e.g. prisons). The grantor controls or regulates what services the operator must provide.
Spending Review   A cross-government review of departmental aims and objectives and analysis of spending programmes which results in the allocation of multi-year budgetary limits.
Store losses   Losses of accountable stores through damage, obsolescence, fraud, theft, arson or any other causes.
Supply   The funds paid to the department by HM Treasury. The amount paid in the year is shown in the Statement of Changes in Taxpayers’ Equity.

  1. The figures for 2017-18 have been restated for the correction of prior period errors in 2018-19. ↩ ↩2 ↩3

  2. Includes amortisation and impairments. ↩ ↩2 ↩3 ↩4

  3. Pension schemes report under IAS 19 Employee Benefits accounting requirements. These figures therefore include cash payments made and contributions received, as well as certain non-cash items. ↩

  4. Total departmental spending is the sum of the Resource and the Capital outturn less depreciation. Similarly, total DEL is the sum of the Resource DEL and Capital DEL less depreciation in DEL, and total AME is the sum of Resource AME and Capital AME less depreciation in AME. ↩ ↩2 ↩3

  5. The 2017-18 Designation Order established the Press Recognition Panel as part of the MoJ Departmental Boundary. This is an administrative action on behalf of government with no change to the Lord Chancellor’s responsibilities as stated under the Charter. DCMS remain the policy lead in relation to the Press Recognition Panel. ↩

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