House of Commons Refreshment Department Trading Account 1998-99 Notes to the Accounts

Notes to the Accounts



(a)  Accounting Convention

    The accounts are produced under the historical cost convention. Without limiting the information given, the accounts meet the accounting and disclosure requirements of the Companies Acts and standards issued or adopted by the Accounting Standards Board, so far as those requirements are appropriate.

(b)  Turnover

    Turnover represents the amount of goods or services provided in the period (stated net of value added tax and trade discounts). Non discretionary service charges for banqueting functions are treated as other operating income.

(c)  Tangible Fixed Assets and Depreciation

    Tangible fixed assets purchased by the Refreshment Department are capitalised in the Balance Sheet.

    Depreciation is provided on a straight line basis at the following annual rates in order to write off the cost of each asset to its estimated residual value over its estimated useful life:

    Computer equipment—331/3 per cent per annum

    Other equipment—20 per cent per annum

    A full year's depreciation is charged in the year of acquisition; no depreciation is charged in the year of disposal.

(d)  Stocks

    Stocks are stated at the lower of cost and net realisable value.

(e)  Improvements

    The cost of minor improvements to outlets borne by the Refreshment Department is written off to the Income and Expenditure account in the year of occurrence.

    Contributions made by the Refreshment Department toward the cost of major works undertaken by the Parliamentary Works Directorate are recognised when paid.


    Turnover and Gross Profit are attributable to the following activities:

House Services  2,116,134  1,960,824
Private Banqueting  1,777,262  1,585,586
Souvenir Kiosks and Shop  660,384  666,831
TOTAL  4,553,780  4,213,241
House Services  508,953  492,851
Private Banqueting  1,154,735  1,064,378
Souvenir Kiosks and Shop  269,960  280,567
TOTAL  1,933,648  1,837,796

Gratuities of £24,249, collected on behalf of and distributed directly to certain of the staff through the Payroll are excluded from turnover.


Staff Costs—Banqueting:
   Wages and salaries  608,624  534,867
   Social Security  62,237  54,669
   Service Charge  190,056  169,338
   Superannuation  40,184  42,196
   Staff Meals  14,850  13,497
   Late night transport and travelling  16,823  13,098
Total Banqueting Staff Costs  932,774  827,665
Staff Costs—Souvenir Kiosks:
   Wages and salaries  48,230  51,299
   Social Security  3,858  4,114
   Superannuation  5,582  5,820
Total Souvenir Kiosk Staff Costs  57,670  61,233
Other Costs—Expenses
   Financial Charges  29,542  26,212
   Professional Fees  30,058  15,032
   Cleaning Materials  20,950  18,841
   Contract Cleaning  257,165  208,606
   Laundry  39,789  42,193
   Repairs and Renewal of Equipment  83,882  77,708
   Disposables  78,906  67,498
   Linen and Uniforms  58,686  46,169
   Vending Machine Rental Costs  4,960  4,420
   Computer Maintenance  21,123  24,164
   Van Running Costs  21,920  21,286
   Printing and Stationery Costs  47,473  37,793
   Sundry Expenses  24,335  25,557
   Depreciation  56,658  57,281
Total Expenses  775,447  672,760
Total Operating Costs  1,765,891  1,561,658
(a)  Notional Audit Fee      
   National Audit Office  £29,200  £28,600
(b)  Cost of providing Refreshments not included in the Accounts      

In accordance with the Leader of the House's statement of 4 December 1979, and subsequent amendments agreed by the House of Commons Commission, the costs of staff are borne on the House of Commons Administration Vote, with the exception of those relating to the Banqueting and Souvenir functions.

   1998-99  1997-98
Staff and Other Costs borne on the House of Commons Administration Vote 1998-99 (Cash Basis):  £4,896,000  £4,302,000
(b)  Refreshment Department Staff complement at year end (Full Time Equivalent):  314.5  310.0

Under the arrangements agreed by the House of Commons Commission and in common with other Departments of the House, the Refreshment Department also receives accommodation, gas, electricity, water and telecommunications on an allied service basis. In accordance with the agreed arrangements these costs, which so far as they relate to the Refreshment Department cannot be precisely quantified, are borne on the House of Commons Works Vote.


    The Department's holding of 45/8 Treasury Stock costing £991,705 matured on 27 April 1998 and yielded proceeds of £1,072,697. The resulting gain has been credited to the Major Works Allocation within the accumulated surplus (Note 7).


Interest on Index Linked Treasury Stock  3,407  50,024
Interest on Bank Deposit Accounts (current)  229  211
Interest on Short-Term Investments  193,447  108,741
   197,083  158,976


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© Parliamentary copyright 1999
Prepared 27 July 1999