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Notes to the Accounts - continued
6. TAX ON INVESTMENT TRANSACTIONS
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| 1998-99
£ |
| 1997-98
£ |
| Corporation Tax at Standard Rates |
| 57,677 |
| 23,380 |
| Income Tax at Standard Rates |
| 681 |
| 10,005 |
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|
|
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|
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| 58,358 |
| 33,385 |
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7. INCOME AND EXPENDITURE ACCOUNT
Under arrangements approved by the House of Commons Commission
in March 1993, a sum equivalent to 10 per cent of annual turnover
is allocated from the retained surplus to provide Working Capital
and to finance minor works and capital expenditure by the Department.
During the year the Department incurred no costs for minor works,
and no funding for capital assets was required from the Working
Capital fund.
Working Capital accumulated in excess of this approved allocation
is transferable to the House of Commons Administration Vote for
surrender to the Consolidated Fund.
The remainder of the retained surplus is set aside for contributions
to the House of Commons Works Vote towards capital improvements
benefiting the Refreshment Department, at the discretion of the
House of Commons Commission. All interest income (net of tax)
is credited to this major works allocation. It was originally
agreed that the allocation would be utilised over the 3 years
ending 31 March 1999. However, it was subsequently decided that
the period for utilisation would be extended to the year ending
31 March 2000. A contribution of £500,000 was made to the
Works Vote during the year.
The retained surplus is analysed as follows:
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| Working Capital
£ |
| Major Works Allocation
£ |
| Total
£ |
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| Balance at 3 April 1998 |
| 421,324 |
| 1,972,718 |
| 2,394,042 |
| Operating Surplus for the period |
| 357,813 |
| — |
| 357,813 |
| Interest Income and gain on investments (net of tax) |
| — |
| 219,717 |
| 219,717 |
| Amount transferred from Capital Asset Reserve |
| 24,507 |
| — |
| 24,507 |
| Amount transferred to House of Commons Works Vote |
| — |
| (500,000) |
| (500,000) |
| Amount Transferable to House of Commons Administration Vote |
| (348,266) |
| — |
| (348,266) |
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| Balance at 1 April 1999 |
| 455,378 |
| 1,692,435 |
| 2,147,813 |
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8. CAPITAL ASSETS RESERVE
The Refreshment Department maintains a capital assets reserve
which represents the net book value of tangible fixed assets funded
from the working capital reserve within the Income and Expenditure
account.
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| 1999
£ |
| 1998
£ |
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| Balance at 3 April 1998 |
| 72,253 |
| 96,737 |
| Transfer to Income and Expenditure account |
| (24,507) |
| (24,484) |
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| Balance at 1 April 1999 |
| 47,746 |
| 72,253 |
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9. TANGIBLE FIXED ASSETS
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| Computer Equipment
£ |
| Other Equipment
£ |
| Total
£ |
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| Cost: |
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| At 3 April 1998 |
| 142,932 |
| 91,727 |
| 234,659 |
| Additions |
| 25,296 |
| 6,855 |
| 32,151 |
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| At 1 April 1999 |
| 168,228 |
| 98,582 |
| 266,810 |
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| Depreciation: |
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| At 3 April 1998 |
| 107,174 |
| 55,232 |
| 162,406 |
| Charge for the year |
| 36,942 |
| 19,716 |
| 56,658 |
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| At 1 April 1999 |
| 144,116 |
| 74,948 |
| 219,064 |
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| Net Book value at 1 April 1999 |
| 24,112 |
| 23,634 |
| 47,746 |
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| Net Book value at 2 April 1998 |
| 35,758 |
| 36,495 |
| 72,253 |
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10. STOCKS
Included in stocks of £222,598 are £4,266 of laid
down wines which may not be sold within one year. In accordance
with industry practice, these are classified as a current asset.
11. DEBTORS
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| 1999
£ |
| 1998
£ |
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| Trade Debtors |
| 352,416 |
| 388,864 |
| Prepayments |
| 3,376 |
| 3,858 |
| Accrued Interest |
| 102,791 |
| 21,844 |
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|
|
|
|
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| 458,583 |
| 414,566 |
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12. CREDITORS:—AMOUNTS FALLING DUE WITHIN ONE YEAR
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| 1999
£ |
| 1998
£ |
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| Trade Creditors |
| 181,041 |
| 212,012 |
| Current Corporation Tax |
| 53,901 |
| 23,742 |
| Value Added Tax |
| 112,679 |
| 125,016 |
| Members' Deposits |
| 133,700 |
| 152,079 |
| Other Creditors |
| 331,547 |
| 330,579 |
| Amount Transferable to House of Commons Administration Vote |
| 348,266 |
| 605,440 |
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|
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| 1,161,134 |
| 1,448,868 |
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13. CONTINGENT LIABILITY
The Department withheld payment of £30,408 from a supplier
for work they considered defective. The Department consider it
unlikely that the supplier will take action to recover these monies
and accordingly no provision for any liability has been made in
the Accounts.
14. PENSION COMMITMENTS
The permanent staff of the Refreshment Department are House
of Commons Staff who participate in the House of Commons Staff
Pension Scheme, a scheme which is analogous to the Principal Civil
Service Pension Scheme. The Refreshment Department has no liability
for the funding of the Pension Scheme beyond the payment of employer
contributions for those permanent staff borne on the Trading Account.
The rates of contribution are determined from time to time by
the Government Actuary and advised by the House of Commons to
the Department. For 1998-99, contributions incurred by the Refreshment
Department were £45,766. The rates applicable for the year
(as in 1997-98) were between 11 and 13.5 per cent of salary.
15. PERFORMANCE TARGET
The target for the Refreshment Department's 1998-99 Trading
Account operating surplus was 5 per cent of turnover, which compares
to the actual operating surplus at 8 per cent of turnover.
16. RELATED PARTY TRANSACTIONS
The House of Commons is regarded as a related party. During
the year, the Refreshment Department has undertaken material transactions
with the House of Commons as disclosed in the accounts and notes.
The House of Commons also provides personnel and payroll services
for banqueting and kiosk staff borne on the Trading Account. None
of the Catering Committee members, the Finance and Services Committee
members or the House of Commons Commission members, key management
staff or other related parties has undertaken any material transactions
with the Department during the year other than transactions occurring
in the normal course of the Refreshment Department's activities
and on normal business terms.
17. FINAL YEAR OF SEPARATELY PRODUCED ACCOUNTS
It is expected that the Refreshment Department Trading Account
will be incorporated into the House of Commons Resource Account
from 1999-2000. As a consequence, a separate account will no longer
be audited and published. This change will have no impact on the
Department's trading operations.
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