The Planning Inspectorate- Wales

The Planning Inspectorate Annual Report and Accounts 2005/06

Section 12 - Financial Statements for year ended 31 March 2006

18. Related-party transactions

The Office of the Deputy Prime Minister is the controlling related party and the ultimate controlling party.

The National Assembly for Wales (NAW) is regarded as a related party, with whom the Inspectorate has had a significant number of material transactions during the year.

In addition, the Inspectorate has had a significant number of material transactions with other Government bodies. Most of these transactions have been with the Treasury Solicitor, the Highways Agency, and the
Department for Environment, Food and Rural Affairs (Defra).

Table showing the related party transactions

Text only version for Related-party transactions

None of the Board Members, key managerial staff or other related parties has undertaken any material transactions with the Inspectorate during the year.

None of the Board Members has material interests in any company with which the Inspectorate has transacted during the year.

19. Deemed planning applications

Every appeal against an enforcement notice automatically includes a deemed planning application.The appellant is required to pay a fee for consideration of this application which is double the normal planning application fee. If the appeal succeeds on legal grounds, or in certain other circumstances, the fee is refunded. Receipts and refunds relating to deemed planning applications are posted to a suspense account, the balance of which at year end represents cases which have not been determined. From 1 April 2002 the balance held has been introduced into the Balance Sheet of the Inspectorate as both a debtor and a creditor (see notes 7 & 8).

Table showing the deemed planning applications

Text Only version for Deemed planning applications

20. Post balance sheet event

On 5 May 2006 the Prime Minister announced a number of changes to his Cabinet and to departmental responsibilities.These changes included the creation of a new Government Department – the Department for Communities and Local Government, with a new Secretary of State, Ruth Kelly. DCLG has replaced the Office of the Deputy Prime Minister as the Sponsor Department for the Inspectorate and has a remit to promote community cohesion and equality, as well as responsibility for housing, urban regeneration, planning and local government.

The Certificate and Report of the Comptroller and Auditor General to the House of Commons

I certify that I have audited the financial statements of The Planning Inspectorate for the year ended 31 March 2006 under the Government Resources and Accounts Act 2000.These comprise the Operating Cost Statement, the Balance Sheet, the Cash Flow and the related notes.These financial statements have been prepared under the accounting policies set out within them.

Respective responsibilities of the Inspectorate, the Chief Executive and Auditor

The Inspectorate and the Chief Executive are responsible for preparing the Annual Report and the financial statements in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions made there under and for ensuring the regularity of financial transactions.These responsibilities are set out in the Statement of Accounting Officer’s Responsibilities.

My responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements, and with International Standards on Auditing (UK and Ireland).

I report to you my opinion as to whether the financial statements give a true and fair view and whether the part of the Financial Statements and the Remuneration Report to be audited have been properly prepared in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000. I also report whether in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. I also report to you if, in my opinion, the Annual Report is not consistent with the financial statements, if the Inspectorate has not kept proper accounting records, if I have not received all the information and explanations I require for my audit, or if information and explanations I require for my audit, or if information specified by relevant authorities regarding remuneration and other transactions is not disclosed.

I review whether the statement on pages 51 to 54 reflects the Inspectorate’s compliance with HM Treasury’s guidance on the Statement on Internal Control, and I report if it does not. I am not required to consider, nor have I considered whether the Accounting Officer’s statement on internal control covers all risks and controls, or to form an opinion on the effectiveness of the Inspectorates corporate governance procedures or its risk and control procedures.

I read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. I consider the implications for my report if I become aware of any apparent misstatements or material inconsistencies with the financial statements. My responsibilities do not extend to any other information.This other information comprises only Sections 1–11 and Section 13 of the Annual Report, the unaudited part of the Remuneration Report and Annexes B–E of Section 14.

Basis of audit opinion

I conducted my audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of financial transactions included in the financial statements and the part of the Remuneration Report to be audited. It also includes an assessment of the significant estimates and judgements made by the Inspectorate and Chief Executive in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Inspectorate’s circumstances, consistently applied and adequately disclosed.

I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements and the part of the Remuneration Report to be audited are free from material misstatement, whether caused by fraud or error and that, in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. In forming my opinion I have also evaluated the overall adequacy of the presentation of information in the financial statements and the part of the Remuneration Report to be audited.

Opinion

In my opinion:

the financial statements give a true and fair view, in accordance with the Government Resources and Accounts Act 2000 and directions made there under by HM Treasury, of the state of the Inspectorate’s affairs as at 31 March 2006 and of the net operating cost, total recognised gains and losses and cash flows for the year ended;
the financial statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with HM Treasury directions issued under the Government Resources and Accounts Act 2000;
in all material respects the expenditure and income have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

I have no observations to make on these financial statements.

John Bourn
Comptroller and Auditor General
National Audit Office
157-197 Buckingham Palace Road
Victoria
London SW1W 9SP
3 July 2006