Schedule 4
DEPARTMENT FOR INTERNATIONAL DEVELOPMENT
FORECAST CASH FLOW STATEMENT 1998-99
|
| 1998-99
|
| £000
|
|
| Net cash outflow from operating activities |
-1,855,530 |
| Capital expenditure and financial investment
| -50,045 |
| Payments to the consolidated fund | 0
|
| Financing from the consolidated fund | 1,931,663
|
| Decrease in cash in the period | 26,089
|
| Reconciliation of operating costs to operating cash flows
| |
| Net Operating Costs | 2,485,128
|
| Adjust for non cash transactions | 674,142
|
| Adjust for movements in working capital other than cash
| -44,543 |
| Adjust for transfer from provision | 0
|
| Net cash outflow from operating activities |
1,855,530 |
| Analysis of capital expenditure and financial investment
| |
| Purchases of fixed assets | 4,741
|
| Proceeds of disposal of assets | 0
|
| Investments | 9,385
|
| Loans to other bodies | 35,919
|
| Net cash outflow from investing activities |
50,045 |
| Analysis of financing | |
| From consolidated fund | 1,931,663
|
| Decrease in cash | 26,089
|
| Net cash requirement | 1,905,574
|
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COMMENTARY ON ILLUSTRATIVE RESOURCE ESTIMATE
1. Under RAB each department will produce a single resource-based
Main Estimate, the coverage of which will be reflected in schedule
1 of the associated departmental Resource Account.
2. The attached resources-based Main Estimate format
for DFID is based on the Treasury standard and is broadly based
on that used for the current cash-based Estimates.
3. Part I of the resource Estimate will, as now, contain
the following key facts:
— the net provision sought (ie the amount of expenditure
in both resource and cash terms sought for the forthcoming financial
year);
— a formal description of the services to be financed
from the Estimate, known as its Ambit, Under RAB, the Ambit will
indicate the scope of the expenditure to be financed from each
Request for Resources contained within the Estimate, including
where appropriate associated non cash items (eg depreciation and
cost of capital charges);
— confirmation that DFID will account for the Estimate;
— any amounts which have been allocated in the Vote
on Account.
4. The net provision amounts (both resources and cash),
appropriations in aid totals and the Ambit of the Estimate will
be reproduced in the Appropriation Act and will together provide
the statutory authority for expenditure. No expenditure may be
financed from the Estimate which is in excess of the net provision
totals or which is not covered by the Ambit.
5. Part II (sub head details) of the Estimate provides
a further breakdown of the expenditure for which approval is sought
and is broadly similar to the structure of the cash-based Estimate.
6. It is proposed that the resource Estimate be split
into two "Requests for Resources" (RfR)—one for
overseas development and one for overseas superannuation. These
correspond with DFID's existing votes. Beneath this level, the
RfR for international development there are also a number of functional
lines as is currently the case.
7. The different types of expenditure within the Estimate
are shown in the vertical breakdown of part II. Columns one and
two fall within the resource budget and show all voted expenditure
on an accruals basis. Each column may therefore include amounts
in respect of the current consumption of assets but will not include
the amounts associated with the purchase of capital items.
8. Appropriations in Aid (AinA) within the Resource Budget
are shown in column three. As before these will be subject to
Parliamentary control and will be deducted from the amounts in
columns one and two to give a net total amount in column four.
The net totals will also be subject to Parliamentary control.
9. The arrangements for how virement might operate in
resource-based Estimates are being tested in a "live test"
of in-year controls that Treasury is currently carrying out, the
results of which will be reported to Parliament in due course.
10. Columns five and six of the part II table show the
non-resource budget elements of the Estimate and are also scored
on an accruals basis. Column five shows forecast capital acquisitions
and column six shows forecast AinA which relate to non-operating
cost items such as receipts from the disposal of fixed assets.
The total amount of non-operating AinA for the department will
be subject to Parliamentary control.
11. Although not shown in the attached example, figures
for the two prior years will feature in the published version
of part II to enable a comparison to be made.
12. A detailed explanation of the reconciliation between
the net resource total and the net cash requirement is shown at
the foot of the part II table. Capital expenditure is outside
the Resource Budget, but the cash required to finance capital
expenditure in the year in question has to be provided. This therefore
forms part of the cash requirement, which means that capital expenditure
is added to the resource total. Non-cash items which were included
in the resource budget are then removed (eg capital charges, depreciation
and EC attribution), and the cash effects of various adjustments
relating to working capital changes (creditors and debtors) and
changes, in provision are shown. The net effect of these changes
results in the identification of the Department's net cash requirement.
13. Part III of the Estimate shows the extra receipts
payable to the Consolidated Fund. As now, this seeks to notify
Parliament of the Department's forecast of amounts to be paid
directly to the Consolidated Fund and not appropriated in aid.
Amounts will be shown both for forecast income and forecast receipts.
Prior year data analysed by income and cash receipts will also
be shown.
14. As shown in the illustration, Resource Estimates
will be accompanied by a Forecast operating cost statement and
a forecast cash flow statement. These statements will reflect
the format of, and have the same scope as, the outturn operating
cost and cashflow statements which will be included in the Department's
resource accounts.
15. The forecast statements will be accompanied by notes
which will provide additional information to Parliament about
the specific nature of the Department's plans.
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