Corporate report

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

Updated 15 December 2023

Applies to England and Wales

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. ↩