Government Equalities Office

Main Estimate 2010/11

Select Committee Memorandum

Table of Contents

Introduction

1. The Government Equalities Office’s Main Estimate for 2010-11 seeks the necessary resources and cash to support the GEO, the Women’s National Commission and the Equality and Human Rights Commission. These are continuing functions from previous years and no new functions have been added. The purpose of this memorandum is to provide the select committee with an explanation of how the resources and cash sought in the Main Estimate will be applied to achieve departmental objectives. This includes information on comparisons with the resources provided in earlier years in Estimates and departmental budgets, and may also refer to future financial plans.

2. An explanation of key terms used in the memorandum is provided as an annex. The purpose of this Memorandum is to provide the Select Committee with additional information about the content of the Department’s Spring Supplementary Estimate for 2009/10. Included is information on the Estimate and how this relates to departmental budgets, control totals and Public Service Agreement targets. An explanation of key terms used in the Memorandum is provided at Annex A.

Summary of the Estimate

Voted provision

3. The Main Estimate provides for a:-

a. Total net resource requirement of £71,518,000;

b. Net Cash Requirement of £71,517,000;

Budgetary Data

4. The key budgetary figures are: -

a. Resource Departmental Expenditure Limit - £69,518,000

b. Capital Departmental Expenditure Limit - £2,000,000

Detailed Explanation of Changes

5. Net Resource Requirement
There has been a reduction of £14,300,000 since the 2009-10 Main Estimate.



This is a reduction of 17% from 2009-10. This reduction reflects a £5m reduction in capital funding for the EHRC agreed during 2009-10 and a £9m deficit reduction agreed in the emergency budget in June 2010. The final £0.3m is efficiency savings already identified in the GEO’s Comprehensive Spending Review baseline.

6. Net Cash Requirement
The cash requirement has similarly reduced in line with the Resource requirement.

7. Resource DEL
Resource DEL has decreased by £9.5m reflecting the deficit reduction in the Emergency Budget. This is a 12% reduction in resource budget.

Administration limit

8. The GEO’s administration budget forms part of the Resource DEL and has its own control. The GEO’s administration budget has reduced by 1% compared with 2009-10.

Departmental Expenditure Limit

9. The table below compares outturn from 2007-8 onwards and the provision for 2010-11.

End Year Flexibility

10. The GEO has the following End Year Flexibility of £14,478,000 of which:

a. £6,096,000 is capital and

b. £8,382,000 is resource

Provisions and Contingent Liabilities

11. It is normal for departments to provide for legal or constructive obligations, which are uncertain in respect of either timing or amount, on the basis of the best estimate of the expenditure required to settle the obligation. The Government Equalities Office does not have any provisions or contingent liabilities.

Income Change

12. Income is generated by the Women’s National Commission, which carries out work on behalf of the Other Government Departments for which it is reimbursed.

Process for Preparation and Approval of Memorandum

13. This Memorandum has been prepared in accordance with the suggested format as set out in A Guide to Preparing Estimate Memoranda and has been approved by the Treasury.

Annex A

Explanation of key terms used in the Memorandum

Voted Provision

The amount of funding, Voted by Parliament, which can be spent by the Government Equalities Office in the financial year.

Request for Resource – Resource requirement
A request for resource is the amount of funding required to meet an objective. Some departments have several Requests for Resources (RfRs), GEO only has one RfR.

Net Resource Requirement

Funding required to meet expenditure plans minus income used to support that expenditure.

Net Cash Requirement

The amount of cash required to fund the resource expenditure. The cash required may be different as government uses the same recording principles as the private sector.

Departmental Expenditure Limit

This is spending within the Department’s direct control and which can therefore be planned over an extended period, such as the costs of its own administration, payments to third parties.

Request for Resources

The Department has one Request for Resource:

§ Request for Resource 1: Promoting a fair and equal society where everyone has the opportunity to prosper and reach their full potential.

End of Year Flexibility

A mechanism that enables the Department to plan the use of resources over Spending Review years and therefore carry forward unspent provision in the Departmental Expenditure Limit in one year to subsequent years. To encourage good financial management and soundly based forecasting the Department links the availability of End of Year Flexibility to budget holders to the accuracy of their financial forecasts.

Voted and Non-Voted Funds

The term Vote applies to the process by which Parliament formally approves the supply of funds to the Department. Non-voted funds have by definition not been through that process. The expenditure of the Equality and Human Rights Commission is non voted spend, even though it is within DEL. The Voted spend for the Equality and Human Rights Commission is the grant in aid shown as payments to NDPBs in the Estimate.