Annex 1
A: DEFINITION
OF TERMS:
1. Direct Resource Departmental Expenditure
Limits (RDEL):
This is a control on current expenditure which
covers, for example, pay, purchase of goods and services, net
of receipts, within the resource budget. It excludes 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 Departmental Expenditure
Limit (IRDEL):
This control 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. Administration Costs Limit:
Administration cost controls, which form separate
control limits on an income basis within DEL, cover departments'
current expenditure on staff, accommodation and other services
used in the administration of central government and the direct
delivery of services. The primary aim of administration costs
control is to promote economical and efficient administration
and service delivery in central government. This is largely achieved
by containing gross administrative costs.
4. Total Resource DEL:
This is the sum of Direct and Indirect Resource
DEL.
5. 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.
6. Non-Budget:
Items of expenditure which are included in the
Estimate, but are outside of DEL and AME. This is a Parliamentary
control but not a Treasury control.
7. Total Net Resource:
This is the sum of items 1 to 6.
8. Capital Departmental Expenditure Limit
(CDEL):
This is for new investment, including Capital
additions, disposals, and the capital repayment of loans.
9. Capital Annually Managed Expenditure:
Includes the capital element of the loan repayments
for self-financing public corporations, such as QinetiQ.
10. Capital Non-Budget
Items of expenditure which are included in the
Estimate, but are outside of DEL and AME. This is a Parliamentary
control but not a Treasury control.
11. Total Net Capital:
This is the sum of items 8 to 10.
12. Total Near Cash:
This is the total accrued expenditure spend
and is the sum of Direct RDEL and Capital DEL.
13. 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.
14. Request for Resources 2:
Conflict Prevention provides primarily for the
additional costs of 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.
15. 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.
16. CSR 2007:
Comprehensive Spending Review 2007 (Cm
7227).
17. Total DEL:
This is the sum of Resource DEL and Capital
DEL less the costs of depreciation. This is used as depreciation
is included as part of Resource DEL and, since Capital DEL includes
capital spending, the inclusion of depreciation would lead to
double counting.
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