Crown Prosecution Service Spring Supplementary Estimate 2016-17

Memorandum

Introduction

The Spring Supplementary Estimate for 2016-17 sets out the revised expenditure plans of the

Crown Prosecution Service (CPS) and seeks the necessary resources and cash to support

those plans.

This memorandum is intended to provide the select committee with an explanation of how

the resources and cash sought in the Spring Supplementary Estimate will be applied to

achieve departmental objectives. This includes information on comparisons with the

resources provided in earlier years in estimates and departmental budgets and refers to future

financial plans. Details of changes in resource relative to plans set out in the CPS Main

Estimate 2016-17 are provided.

The adjustments sought in this Supplementary Estimate:

Reflect funding received from the Foreign and Commonwealth Office as part of the

resource requirement for the contribution to the International platform (£337,000);

Reflect a revision to the Net Cash Requirement for the movements in working balances

(£23,000,000)

Summary of the main spending control figures contained in the Estimate

Budgets

The Supplementary Estimate provides for an increase in voted resource:

Increase in the Net Resource Requirement (NRR) of £337,000.

Net Cash Requirement

The Supplementary Estimate provides for an increase in total net cash:

Increase in voted resource of £337,000.

Movements in working balances of £23,000,000

Budgetary Data

There is no overall change to the Annually Managed Expenditure as the Budget increase

relates to our Resource Departmental Expenditure Limit.

Departmental Expenditure Limits

The increase in voted Departmental Expenditure Limits relates to One HMG baseline funding

received from the Foreign and Commonwealth Office.

Amount Description

Movements in budgets related to DEL

Transfer to/from voted DEL

£337,000 Transfer from the Foreign and Commonwealth Office as part of the resource

requirement for the contribution to the International platform;

£337,000 Total change from transfers to/from voted DEL

Departmental Expenditure Limit

Details of DEL in Estimates are:

£’000s Voted Non-voted Total

Resource DEL

Main Estimate 491,269 0 491,269

Spring Supplementary Estimate 491,606 0 491,606

Capital DEL

Main Estimate 7,500 0 7,500

Spring Supplementary Estimate 7,500 0 7,500

Deductions Depreciation* -2,959 0 -2,959

Revised Total DEL 499.106 0 499,106

*Depreciation, which forms part of RDEL, is excluded from total DEL since CDEL includes

capital spending and to include depreciation of those assets would lead to double counting.

Movements in DEL arise from:

One HMG baseline budget transfers from the Foreign and Commonwealth Office as part of

the resource requirement for the contribution to the International platform in 2016-17.

The table below compares estimates and outturn for the previous four years and planned

Resource DEL for the current year.

£’000s Estimate

Year Voted Non-Voted TOTAL Outturn Variance

Resource

2012-13 593,420 -12,781 580,639 559,133 -3.70%

2013-14 562,425 -8,136 554,289 546,907 -1.33%

2014-15 507,604 1,900 509,504 506,679 -0.55%

2015-16 482,276 10,547 492,823 486,267 -1.33%

2016-17 491,269 337 491,606 - -

From 2011-12 expenditure and utilisation of provisions relating to existing PFI contracts was

reclassified from non-voted to voted expenditure as part of the Clear Line of Sight project.

There is no change to the basis of total Resource DEL.

Capital

2012-13 2,700 0 2,700 -595 -122.0%

2013-14 2,260 0 2,260 -672 -129.73%

2014-15 3,280 0 3,280 46 -98.60%

2015-16 2,460 -750 1,710 90 -94.74%

2016-17 7,500 0 7,500 - -

Programme Budget

The Supplementary Estimate seeks an increase of £337,000 in programme budget in respect

of budget received from the Foreign and Commonwealth Office as part of the resource

requirement for the contribution to the International platform.

£’000s

Programme Budget

Year Voted Non-Voted Total Outturn

2012-13 540,781 0 540,781 526,828

2013-14 524,955 0 524,955 516,479

2014-15 477,044 0 475,144 476,622

2015-16 460,623 0 460,623 454,704

2016-17 459,669 337 460,006 -

Approval of Memorandum

This memorandum has been prepared with reference to guidance in the Estimates Manual

provided by HM Treasury. The information in this memorandum has been approved on

behalf of the Accounting Officer by Christopher Sharp, Finance Director.

Glossary of Key Terms

Administration Budget – a Treasury control on the resources consumed directly by

departments and agencies in providing those services which are not directly associated with

frontline service delivery. Including such things as: civil service pay; resources expenditure

on accommodation, utilities and services. The Administration Budget is part of Resource

DEL

Annually Managed Expenditure (AME) – A Treasury budgetary control for expenditure

that is generally less predictable and controllable than expenditure in DEL.

Appropriations in Aid – income received by a department which it is authorised to retain

(rather than surrender to the Consolidated Fund) to finance related expenditure. Such income

is voted in Estimates and accounted for in departmental resource accounts.

Capital Expenditure – Spending on the purchase of assets, above a certain capitalisation

threshold, which are expected to be used for a period of at least one year. It includes the

purchase of buildings, equipment and land. The capitalisation threshold for the Crown

Prosecution Service is £2000; items below this value are not counted as capital assets even if

they have a productive life of more than one year.

Clear Line Of Sight (CLOS) – A Treasury project to simplify public spending and reporting

by aligning the estimates, budgetary and accounting frameworks more closely and reducing

duplication in financial reporting documents.

Departmental Expenditure Limit (DEL) – a Treasury budgetary control for spending that

is within the department’s direct control and which can therefore be planned over an extended

(spending review) period (such as the costs of its own administration, payments to third

parties, etc).

Departmental Unallocated Provision (DUP) – a part, usually between 1% and 1.5% of a

department’s total DEL that is not allocated to particular spending, but held back by the

department to meet unforeseen pressures.

International Financial Reporting Standards (IFRS) – A new financial reporting

framework adopted across government in 2009-10. The main impact on the CPS is that

certain leases are now treated as capital expenditure in Estimates and Resource Accounts,

although they remain as resource expenditure in Budgets.

Net cash requirement – 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 its

resource Estimate to carry out the functions specified in the Estimate’s ambit.

Request for Resources (RfR) – a function based description of the organisational level of

the department. These can vary between one or more RfR and should be objective-based,

referring to the purpose for which the functions being carried out by the department are

intended to meet.