Submission from the Engineering and Physical
Sciences Research Council
As requested please find a breakdown of the
EYF stocks attached at Appendix 1
(i) Original projections included in the
EPSRC Delivery Plan suggested in year expenditure leading to a
£21.5 million draw down of brought forward EYF stocks. However
with the passage of time since publication of Delivery Plan it
became increasingly clear that the expectation on the rate of
start on new grants was falling behind the planning assumptions.
Recognising the situation that was developing during the first
two months of the financial year 2005-06 an increased level of
activity was undertaken to prevent further slippage. Indeed as
a result of this during the last 10 months of the financial year
the position has been held and the present level of confidence
of delivering a neutral current year EYF is high.
(ii) In addition to the above, a loan of
£21M from the EPSRC to RCUK was agreed during 2005-06. This
was supported by the OST, however a misunderstanding resulted
in differing accounting treatments of the loan by the OST and
the EPSRC. It had been intended by the EPSRC that the loan should
effectively reduce DEL from £574 million to £553 million,
however OST reflected an expectation of £21 million drawdown
from brought forward EYF stocks. The position was subsequently
agreed with the OST that the suggested drawdown of £21 million
would not be realised.
As requested please find the latest DEL Outturn
Statements at Appendix 2.
Sub-point (a) You will note that income
has increased by £25 million. This is made up of three elements:
(1) £21 million referred to above in at 2(ii) above; (2)
Reinstatement of an allocation of £3.5 million in respect
of Diamond Beamlines; and, (3) an additional allocation of £0.8
These are exactly balanced by increases in expenditure
so that the resulting forecast was not changed.
Sub-point (b) There are no anomalies.