Corporate report

Annual report and accounts 2021-22: Annexes (HTML)

Published 15 December 2022

This was published under the 2022 to 2024 Sunak Conservative government

Applies to England and Wales

Annex A: Other notes to the Statement of Outturn Against Parliamentary Supply

This section is subject to audit.

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

				2021-22
	Note	Outturn £000	Estimate £000	Net total outturn compared with Estimate: saving/(excess) £000
Net Resource Outturn	SOPS 1.1	9,726,413	10,069,627	343,214
Capital Outturn	SOPS 1.2	1,431,404	1,588,361	156,957
Accruals to cash adjustments:
Adjustments to remove non-cash items:
Depreciation and Amortisation		(701,227)	(871,288)	(170,061)
New provisions and adjustments to previous provisions		(2,041,913)	(673,881)	1,368,032
Other non-cash items		(358,978)	-	358,978
Adjustments for Non-Departmental Public Bodies (NDPBs):
Remove voted resource and capital		(320,687)	(332,556)	(11,869)
Add cash Grant in Aid		272,480	297,686	25,206
Adjustments to reflect movements in working balances:
Increase / (decrease) in receivables		114,750	-	(114,750)
Increase / (decrease) in inventories		297	-	(297)
(Increase) / decrease in payables		162,600	540,000	377,400
Use of provisions		1,984,899	152,153	(1,832,746)
Removal of non-voted items:
Consolidated Fund Standing Services		(163,084)	(158,234)	4,850
OLC and LSB non-voted levy income		17,804	-	(17,804)
Other adjustments		-	17,774	17,774
Net cash requirement		10,124,758	10,629,642	504,884

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 2021-22		Outturn 2020-21
	Income £000	Receipts £000	Income £000	Receipts £000
Income outside the ambit of the estimate	2,820	2,820	267	267
Levy income of OLC and LSB within the ambit of the estimate	17,804	17,804	17,067	17,067
Total income payable to the Consolidated Fund	20,624	20,624	17,334	17,334

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 2022, OSCAR reflects the position agreed at Budget 2021.

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)

Section headings are based on 2021-22 Supplementary Estimate headings.

	2016-17	2017-18	2018-19	2019-20	2020-21	2021-22	2022-23
	Restated Outturn[footnote 1]	Restated Outturn[footnote 1]	Outturn	Restated Outturn	Outturn	Outturn	Plans
Resource DEL
Policy, Corporate Services and Associated Offices	(100,468)	123,413	141,570	-36,628	566,838	704,139	860,365
HM Prison and Probation Service	-	3,709,003	4,021,404	4,170,755	4,599,619	4,241,015	4,697,935
National Offender Management Service	3,722,864	-	-	-	-	-	-
HM Courts & Tribunals Service	1,565,064	1,576,656	1,662,392	1,834,627	1,865,942	2,039,906	2,115,571
Legal Aid Agency	1,639,385	1,680,067	1,715,014	1,746,141	1,550,239	1,787,143	1,999,609
Criminal Injuries Compensation Authority	135,229	148,812	121,365	206,512	165,837	170,237	140,785
Office of The Public Guardian	2,092	(12,299)	(13,952)	(14,069)	1,512	(2,552)	(12,901)
Children and Family Court Advisory and Support Service (net)	113,147	119,414	119,758	129,950	130,013	139,784	144,116
Criminal Cases Review Commission (net)	5,349	5,240	5,262	5,765	6,392	6,972	7,348
Judicial Appointments Commission (net)	3,622	4,852	7,029	6,988	7,274	7,730	8,723
Legal Services Board (LSB) (net)	3,525	3,470	3,725	3,774	3,906	4,099	4,287
Office of Legal Complaints (OLC) (net)	11,855	12,240	13,228	12,351	13,151	13,757	15,317
Parole Board (net)	16,753	17,544	16,855	18,427	20,360	21,507	24,404
Youth Justice Board (net)	149,432	104,755	84,634	83,407	86,312	93,804	101,001
Government Facility Services Limited	-	-	-	(24)	(692)	(360)	-
Independent Monitoring Authority for the Citizens’ Rights Agreements(net)	-	-	-	-	1,964	4,011	5,577
Higher Judiciary Judicial Salaries	152,165	148,407	153,988	159,886	163,898	163,084	162,000
OLC/LSB Levy CFER	(14,083)	(14,480)	(15,695)	(25,728)	(17,067)	(17,804)	(19,604)
Total Resource DEL	7,405,931	7,627,094	8,036,577	8,302,134	9,165,498	9,376,472	10,254,533
Of which:
Staff costs	3,261,219	3,333,741	3,811,703	4,011,613	4,398,670	4,785,069	5,021,589
Purchase of goods and services	4,872,655	4,763,208	4,747,172	5,053,486	4,855,394	5,051,442	5,810,181
Income from sales of goods and services	(594,733)	(723,609)	(685,386)	(441,310)	(69,287)	(72,237)	(1,329,837)
Other income	-	-	-	-	(563,625)	(637,542)	(455,846)
Current grants to local government (net)	184,452	180,230	138,137	142,359	182,388	198,162	201,970
Current grants to persons and non-profit bodies (net)	-	-	31,909	29,799	43,135	49,970	102,048
Rentals	142,774	745,283	733,856	116,404	754,638	665,780	49,807
Depreciation[footnote 3]	491,328	492,519	534,706	470,052	598,957	717,143	854,211
Other resource	(951,764)	(1,164,278)	(1,275,520)	(1,080,269)	(1,034,772)	(1,381,315)	410
Resource AME[footnote 1]
Policy, Corporate Services and Associated Offices	153,139	-55,692	93,576	(1,773,220)	(34,865)	119,815	105,141
National Offender Management Service	47,036	-	-	-	-	-	-
HM Prison and Probation Service	-	84,351	125,009	1,862,813	63,648	104,637	247,000
HM Courts & Tribunals Service	9,644	(44,498)	20,519	38,232	23,678	69,436	87,200
Legal Aid Agency	37,414	18,401	33,795	(7,479)	89,133	39,570	38,421
Criminal Injuries Compensation Authority	4,601	33,175	35,492	(12,648)	(4,544)	(10,613)	20,000
Office of the Public Guardian	504	(64)	(78)	220	4,418	(29)	200
Children and Family Court Advisory and Support Service (net)	5,554	10,054	10,456	14,014	16,271	26,925	30,300
Criminal Cases Review Commission (net)	343	186	156	182	117	(73 )	266
Parole Board (net)	1,052	(1,144)	(42)	104	(141)	31	50
Youth Justice Board (net)	-	398	(398)	62	100	(54)	100
Office of Legal Complaints (net)	67	30	(50)	12	24	-	-
Legal Services Board (net)	-	-	-	-	74	-74	-
Judicial Appointments Commission (net)	-	-	-	-	-	10	-
Government Facility Services Limited	-	-	-	93	730	360	-
Total Resource AME	259,354	45,197	318,435	122,385	158,643	349,941	528,678
Of which:
Staff costs	1,919	-	-	-	-	-	-
Net public service pensions[footnote 2]	-	-	-	168	-	-	-
Depreciation[footnote 3]	116,221	(65,616)	48,492	87,712	62,744	95,663	183,514
Take up of provisions	2,036,774	1,924,749	2,011,770	1,928,438	1,740,200	2,045,971	(139,192)
Release of provision	(1,936,251)	(1,983,927)	(1,872,492)	(1,941,284)	(1,724,849)	(1,985,172)	483,708
Change in pension scheme liabilities	-	-	217,081	-	219,073	370,991	148
Unwinding of the discount rate on pension scheme liabilities	182	-	-	-	-	-	-
Other resource	40,509	169,991	-86,416	47,351	(138,525)	(177,512)	500
Total Resource Budget	7,665,285	7,672,291	8,355,012	8,424,519	9,324,141	9,726,413	10,783,211
Of which:
Depreciation[footnote 3]	607,549	426,903	583,198	557,764	661,702	812,806	1,037,725
Capital DEL
Policy, Corporate Services and Associated Offices[footnote 4]	197,294	212,555	203,554	164,963	272,558	426,544	306,215
National Offender Management Service	71,827	-	-	-	-	-	-
HM Prison and Probation Service	-	83,460	68,346	190,793	502,217	496,903	1,252,916
HM Courts & Tribunals Service	130,998	111,322	169,869	133,073	287,920	483,338	192,010
Legal Aid Agency	9,168	265	451	2	491	3,416	2,024
Criminal Injuries Compensation Authority	1,192	1,340	557	898	1	104	100
Office of The Public Guardian	1,524	2,332	2,322	100	(47)	8,295	1,900
Children and Family Court Advisory and Support Service (net)	-	697	-	-	449	658	3,600
Criminal Cases Review Commission (net)	247	122	125	220	659	455	213
Judicial Appointments Commission (net)	-	147	-	750	513	117	-
Legal Services Board (net)	-	-	-	368	21	10	74
Office of Legal Complaints (net)	407	371	129	60	245	145	250
Parole Board (net)	877	915	9	98	421	235	190
Youth Justice Board (net)	3,666	941	440	600	729	598	600
Government Facility Services Limited	-	-	-	-	401	-	-
Independent Monitoring Authority for the Citizens’ Rights Agreements(net)	-	-	-	-	-	40	-
Total Capital DEL	417,200	414,467	445,802	491,925	1,066,578	1,420,858	1,760,092
Of which:
Purchase of goods and services	16,168	-	-	4,782	-	-	-
Capital support for local government (net)	14,367	4,180	16,572	-	1,754	(1)
(net) Purchase of assets	420,290	446,189	517,287	548,387	1,123,681	1,480,427	1,768,742
Income from sales of assets	(35,666)	(56,345)	(94,181)	(59,077)	(5,425)	(7,231)	(8,650)
Other capital	2,041	20,443	6,124	(2,167)	(53,432)	(52,337)	-
Capital AME
Policy, Corporate Services and Associated Offices	-	-	-	-	-	3,555	23,203
HM Prison and Probation Service	-	-	-	-	-	1,340	-
HM Courts & Tribunals Service	-	-	-	-	-	3,919	-
Legal Aid Agency	-	-	-	-	-	90	-
Office of the Public Guardian	-	-	-	-	-	1,222	-
Children and Family Court Advisory and Support Service (net)	-	-	-	-	-	393	100
Criminal Cases Review Commission	-	-	-	-	-	27	-
Total Capital AME	-	-	-	-	-	10,546	23,303
Total Capital	417,200	414,467	445,802	491,925	1,066,578	1,431,404	1,783,395
Total departmental spending[footnote 4]	7,474,936	7,659,855	8,217,616	8,358,680	9,729,017	10,345,011	11,528,881
Of which:
Total DEL[footnote 4]	7,331,803	7,549,042	7,947,673	8,324,007	9,633,118	10,080,187	11,160,414
Total AME[footnote 4]	143,133	110,813	269,943	34,673	95,899	264,824	368,467

Table 2 Administration costs (£000)

Section headings are based on 2021-22 Supplementary Estimate headings.

	2016-17	2017-18	2018-19	2019-20	2020-21	2021-22	2022-23
	Restated Outturn[footnote 1]	Restated Outturn[footnote 1]	Outturn	Restated Outturn	Outturn	Outturn	Plans
Policy, Corporate Services and Associated Offices	240,339	289,215	294,423	299,414	350,763	369,735	468,593
National Offender Management Service	131,396	-	-	-	-	-	-
HM Prison and Probation Service	-	98,388	62,043	52,931	19,516	24,091	24,625
HM Courts & Tribunals Service	24,766	20,266	17,171	19,487	19,636	20,288	20,215
Legal Aid Agency - Administration	84,452	24,465	20,208	20,574	19,456	16,468	18,872
Criminal Injuries Compensation Authority	12,753	4,857	2,293	2,401	2,063	770	(640)
Office of the Public Guardian	52	56	58	63	63	67	-
Children and Family Court Advisory and Support Service (net)	7,289	6,046	5,219	(59)	5,295	5,192	5,440
Criminal Cases Review Commission (net)	1,139	596	654	918	751	715	669
Judicial Appointments Commission (net)	219	354	276	375	399	434	426
Legal Services Board (net)	-	-	-	-	-	1	-
Parole Board (net)	2,655	1,190	911	1,085	998	982	3,527
Youth Justice Board (net)	4,977	4,244	2,958	2,854	3,255	3,094	3,110
Independent Monitoring Authority for the Citizens ’Rights Agreements (net)	-	-	-	-	1,362	2,542	3,300
Higher Judiciary Judicial Salaries	94	75	76	-	76	89	-
Total Administration	510,131	449,752	406,290	400,043	423,633	444,468	548,137
Of which:
Staff costs	321,685	295,467	259,244	267,705	284,053	312,538	319,775
Purchase of goods and services	136,371	129,388	137,936	118,346	133,292	137,186	181,094
Other income	(12,615)	(14,714)	(36,732)	(13,807)	(47,642)	(46,187)	(28,866)
Current grants to local government (net)	25	-	-	-	-	-	-
Current grants to persons and non-profit bodies (net)	-	-	-	88	-	-	-
Rentals	21,985	18,704	23,502	(1,673)	24,741	5,755	1,784
Depreciation[footnote 3]	23,728	19,512	20,625	31,470	27,189	33,629	74,350
Other resource	18,952	1,395	1,715	(2,086)	2,000	1,547	-

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
	income
	£0	£0	£0		£0		£0
Children & Family Court Advisory & Support Service	(102)	166,811	166,709	1,998	129,047	224	9,945
Youth Justice Board	(83)	95,080	94,997	97	5,651	1	274
Parole Board	-	22,458	22,458	166	6,694	13	12,219
Judicial Appointments Commission	(2)	8,245	8,243	87	4,800	27	1,628
Criminal Cases Review Commission	(4)	6,903	6,899	91	4,716	-	459
Independent Monitoring Authority	-	4,378	4,378	43	2,790	1	19
Legal Services Board	(4,053)	4,031	(22)	33.9	2,499	-	520
Gov Facility Services Limited	(157,648)	157,648	-	1,378	58,405	135	2,664
Office of Legal Complaints	(13,757)	13,757	-	250	10,169	4	461

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 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 2022, 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 2022	382	15	38	1	2	-	-	-	-	-	-	-	-	-	1	439
Of which:
Number that have existed for less than one year at time of reporting	287	5	22	1	2	-	-	-	-	-	-	-	-	-	1	318
Number that have existed for between one and two years at time of reporting	94	8	12	-	-	-	-	-	-	-	-	-	-	-	-	114
Number that have existed for between two and three years at time of reporting	1	2	1	-	-	-	-	-	-	-	-	-	-	-	-	4
Number that have existed for between three and four years at time of reporting	-	-	3	-	-	-	-	-	-	-	-	-	-	-	-	3
Number that have existed for four or more years at time of reporting	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

All highly paid off-payroll workers engaged at any point during the year ended 31 March 2022, 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 2022	681	48	82	1	7	-	-	-	1	-	-	-	-	-	2	822
Of which:
Not subject to off-payroll legislation	652	42	75	1	7	-	-	-	1	-	-	-	-	-	2	780
Subject to off-payroll legislation and determined as in-scope of IR35	25	2	1	-	-	-	-	-	-	-	-	-	-	-	-	28
Subject to off-payroll legislation and determined as out-of-scope of IR35	4	4	6	-	-	-	-	-	-	-	-	-	-	-	-	14
Number of engagements reassessed for compliance or assurance purposes during the year	634	37	71	1	5	-	-	-	1	-	-	-	-	-	-	749
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 2021 and 31 March 2022.

	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	26	8	9	9	6	2	6	2	8	7	16	6	23	7	4	139

Annex E: Report by the Secretary of State on the use of powers under section 70 of the Charities Act 2006 for the year 2021-22

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 2021‑22, the department awarded grants totalling £5,787,603 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 2021‑22.

Name of organisation	Grant name	Amount £
Reunite International Child Abduction Centre	Prevention of international child abduction	118,000
National Association of Child Contact Centres	Standards for child contact centres	192,000
Justice	Administrative Justice Council	20,000
Access to Justice Foundation	Litigants in person support strategy	1,450,000
Access to Justice Foundation	Legal support for litigants in person	1,518,399
Access to Justice Foundation	Legal support sector sustainability	2,000,000
Wirral Citizens Advice Bureau Limited	Co-located advice hub	11,237
The Citizenship Foundation	Magistrates’ Court mock trials competition	25,000
Circles UK	Provisionanddevelopmentofcirclesofaccountability	111,240
Lucy Faithfull Foundation	‘Stop it now’ helpline	216,727
The Butler Trust	The Butler Trust	125,000
Total		5,787,603

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 2021-22.

Number of employees who were relevant union officials during the relevant period	Full-time equivalent employee number
639	634.32

Table 2 Percentage of time spent on facility time

The number of employees who were relevant union officials employed during 2021-22, 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%	17
1-50%	622
51-99%	0
100%	0

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 2021-22.

Total cost of facility time (£000)	£2,291,030
Total pay bill (£000)	£3,867,516,000
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 2021-22 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%

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/collections/government-financial-reporting-manual-frem
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		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 2016-17 have been restated to reflect the machinery of government transfer of common hold law from the department to the Ministry for Housing, Communities and Local Government on 20 July 2017 (£14,000). In addition, the figures for 2016-17 have been restated to reflect the final outturn position on OSCAR for 2016-17, which was finalised after the publication of the 2016-17 Annual Report and Accounts. The figures for 2017-18 have been restated for the correction of prior period errors in 2018-19. ↩ ↩² ↩³ ↩⁴ ↩⁵

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

3. Pension schemes report under IAS19 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 ↩⁴

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. ↩