The Planning Inspectorate- Wales

The Planning Inspectorate Annual Report and Accounts 2005/06

Section 12 - Financial Statements for year ended 31 March 2006

5. Tangible fixed assets

Table showing the tabgible fixed assets

Text only version for Tangible Fixed Assets

6. Revaluation of fixed assets

A decrease in the value of tangible fixed assets attributable to computer equipment of £34,347 determined during 2005/06 using appropriate indexation (£178,508 increase in 2004/05) (see note 1.2) was debited to the Operating Cost Statement.

7. Debtors

Table showing the Debtors number 1

Table showing Debtors number 2

Text only version for Debtors

8. Creditors: amounts falling due within one year

Table showing the creditors number 1

Text only version for Creditors

Table showing the Creditors number 2

Text only version for intra government balances

9. Provisions for liabilities and charges (see also note 1.8)

Table showing provisions for liabilities

Text only version for provisions for liabilities and charges

Early Departure costs (see also note 1.11)

The Inspectorate meets the additional costs of benefits beyond the normal CSPS benefits in respect of employees who retire early by paying the required amounts annually to the CSPS over the period between early departure and normal retirement date.The Inspectorate provides for this in full when the early retirement programme becomes binding on the Inspectorate by establishing a provision for the estimated payments discounted by the Treasury discount rate of 3.5% in real terms. In past years the Inspectorate paid in advance some of its liability for early retirement by making a payment to the Paymaster General’s Account at the Bank of England for the credit of the Civil Service Superannuation Vote.The balance remaining is treated as a prepayment.

Superannuation costs

The 2002 Planning Inspectorate Pay Offer introduced a range of allowances and productivity payments which it wished to make pensionable.Where payments are made newly pensionable and lie outside the normal parameters of the CSPS, there was a liability for the Inspectorate to pay past service contributions for the time when such payments were unconsolidated, fluctuating emoluments.

Adverse costs

During the year there have been a number of challenges in which the Inspectorate has either agreed to submit to judgement or have lost the cases in Court but have yet to be formally notified of the costs.

10. General fund

Table showing the general funds

Text only version for general fund

11. Notes to the cash flow statement

(a) Reconciliation of net operating cost to operating cash flows

Table showing the notes to the cash flow

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12. Capital commitments

Table showing the capital commitment

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13. Commitments under leases

Operating leases

Commitments under leases to pay annual rentals during the years following the year of these accounts are given in the table below, analysed according to the period in which the lease expires.

Table showing the Commitments under lease

Text only version for Commitments under leases

14. Other financial commitments

The Inspectorate has entered into non-cancellable maintenance contracts (which are not operating leases or PFI contracts), for building maintenance.The payments to which the Inspectorate is committed, analysed by the period during which the commitment expires are as follows.

Table showing the other financial commitments

Text only version for Other financial commitments

15. Financial instruments

FRS 13, Derivatives and Other Financial Instruments, requires disclosure of the role financial instruments have had during the period in creating or changing the risks an entity faces in undertaking its activities. Because of the wholly non-trading nature of its activities and the way in which executive agencies are financed, the Planning Inspectorate is not exposed to the degree of financial risk faced by business entities. Moreover, financial instruments play a much more limited role in creating or changing risk than would be typical of the listed companies to which FRS 13 mainly applies.The Inspectorate has no powers to borrow or invest surplus funds and no transactions in foreign currency. Financial assets and liabilities are generated by day-to-day operational activities and are not held to change the risks facing the Inspectorate in undertaking its activities.

As permitted by FRS 13, debtors and creditors which mature or become payable within 12 months from the Balance Sheet date have been omitted from the currency profile.

Liquidity risk

The Inspectorate is financed by resources voted annually by Parliament, funded through the resource account of the Office of the Deputy Prime Minister.The Planning Inspectorate is not therefore exposed to any liquidity risks.

Interest rate risk

The Planning Inspectorate is not exposed to any interest rate risk as it holds no cash balances.

Foreign currency risk

The Planning Inspectorate is not exposed to any significant foreign currency risk.

Fair values

There is no difference between the book value and fair value of any of the Inspectorate’s financial assets and liabilities as at 31 March 2006.

16. Contingent liabilities

Three types of contingent liabilities existed at 31 March 2006, which have not been provided for in the accounts, these were:

(a) Ex-gratia payments which may possibly be made to appellants or other appeal parties who have incurred abortive appeal costs following an error made by the Inspectorate’s members of staff.The timing and value of these payments are very difficult to predict but a best estimate of the contingent liability would be £50,000 (£50,000 in 2004/05).

(b) Litigation costs which may possibly be incurred following unsuccessful attempts to resist a High Court challenge into an Inspector’s decision.The timing and value of such awards are extremely difficult to predict but a best estimate of the contingent liability would be £350,000 (£214,000 in 2004/05).

(c) VAT liability in relation to previous years Consultancy costs being coded incorrectly. No estimate can be made of the likely impact until a definitive ruling is obtained.

17. Losses and special payments

Expenditure on Losses and Special Payments, as defined in Chapter 18 of the Government Accounting Manual, is reported to HM Treasury through the parent Department.The number and value of cases in each category were as follows:

Table showing the losses and special payments