Annex 1
A. DEFINITION
OF TERMS
1. Direct Resource Departmental Expenditure
Limits (RDEL)
This is a control aggregate within the resource
budget. It excludes the non-cash items such as depreciation, cost
of capital and movement in provisions. Direct Resource DEL is
also known as "near cash in the resource budget".
2. Indirect Resource DEL (IRDEL)
This covers items such as depreciation, cost
of capital charges, movement in provisions, and the notional auditors'
fees for the National Audit Office (NAO). This is also known as
non-cash.
3. Total Resource DEL
This is the sum of Direct and Indirect Resource
DEL.
4. Annually Managed Expenditure (AME)
Annually Managed Expenditure (AME) includes
Programmes that are demand-led, such as War Pensions (RfR3) and
exceptionally volatile items that cannot be controlled by the
Department. AME also includes Programmes that are so large that
the Department could not be expected to absorb the effects of
volatility within them, such as cash release of nuclear provisions.
5. Non-Budget
Items of expenditure which are included in the
Estimate, but are outside of DEL and AME eg Grants in Aid, Royal
Hospital Chelsea. This is a Parliamentary control but not a Treasury
control.
6. Total Net Resources
This is the net of items 1 to 5.
7. Capital Departmental Expenditure Limit
(CDEL)
This is for new investment, including Capital
additions, disposals, and the capital repayment of loans.
8. Capital AME
Includes the capital element of the loan repayments
for self- financing public corporations, such as QinetiQ.
9. Total Net Capital
This is the sum of the above capital items.
10. Total Near Cash
This is the total accrued expenditure spend
and is the sum of Direct RDEL and Capital DEL.
11. Request for Resources 1
Provision of Defence Capability, provides for
expenditure primarily to meet the Ministry of Defence's operational
support and logistics services costs and the costs of providing
the equipment capability required by defence policy.
12. Request for Resources 2
Request for Resources 2 provides primarily for
the additional costs of peace keeping and operations. These are
the net additional costs incurred: the costs that the Department
would have incurred regardless of the operation taking place,
such as wages and salaries are recorded against RfR1.
13. Request for Resources 3
War Pensions and Allowances, etc. provides primarily
for the payments of pensions and allowances for disablement or
death arising out of war or service in the Armed Forces after
2 September 1939, and associated non-cash items.
B. LIST OF
ABBREVIATIONS USED
IN THE
ESTIMATE
| AME | Annually Managed Expenditure
|
| CSR | Comprehensive Spending review
|
| DE & S | Defence Equipment and Support
|
| DSO | Departmental Strategic Objective
|
| EYF | End Year Flexibility |
| FCO | Foreign and Commonwealth Office
|
| GAR | General Accounting Rate
|
| HCDC | House of Commons Defence Committee
|
| MoD | Ministry of Defence |
| NAO | National Audit Office
|
| NDPB | Non Departmental Public Body
|
| PSA | Public Service Agreement
|
| RfR | Request for Resources
|
| SSE | Spring Supplementary Estimates
|
| SUME | Single Use Military Equipment
|
| UOR | Urgent Operational Requirement
|
| WSE | Winter Supplementary Estimates
|
| |
| 
