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Notes to the Accounts
1. ACCOUNTING POLICIES
(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.
2. TURNOVER/GROSS
PROFIT
Turnover and Gross Profit are attributable to
the following activities:
| |
| 1998-99
£ |
| 1997-98
£ |
| TURNOVER |
| |
| |
| 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 |
| |
|
|
|
|
| |
| GROSS PROFIT |
| |
| |
| 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.
3. OTHER OPERATING COSTS
| |
| |
| 1998-99
£ |
| 1997-98
£ |
| |
| 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.
4. GAIN ON REDEMPTION OF TREASURY STOCK
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).
5. INTEREST RECEIVABLE
| |
| |
| |
| |
| 1998-99
£ |
| 1997-98
£ |
| |
| |
| |
| 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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