Consideration of IPSA's Estimate 2010-11
SCIPSA 12
Memorandum submitted by Independent Parliamentary Standards Authority (IPSA)
Main Estimate 2010-11
Introduction
As provided by Schedule 1 to the Parliamentary Standards Act 2009, for each financial year the Independent Parliamentary Standards Authority (IPSA) must prepare an estimate of IPSA’s use of resources and submit it to the Speaker’s Committee for the IPSA. The Committee must review the estimate and decide whether it is satisfied that the estimate is consistent with the efficient and cost-effective discharge by IPSA of its functions. Before deciding whether it is satisfied, the Committee must consult HM Treasury and have regard to any advice given. This is the first Estimate prepared by IPSA for a full year of operation.
IPSA is a new body, independent of both Parliament and Government. IPSA has put in place new systems for the payment of MPs’ salaries and expenses and on 7 May 2010 became responsible for their regulation and operation. This new regime represents a break from old practices and is based on clear principles. IPSA’s aim is for the regime to be fair, workable and transparent.
The central consideration in determining IPSA’s set-up and operational costs is that public money has been, and continues to be, spent carefully and prudently. Despite IPSA carrying additional responsibilities in relation to MPs’ expenses over and above those that have existed in previous years, IPSA’s intention is for the combined costs of the new scheme and its administration to cost less to the public purse than the preceding combined arrangements under the House of Commons on a like-for-like basis.
The Estimate includes provision for a resource requirement of £156.58M: £148.64M relates to the direct payment of MPs’ pay, staffing costs and expenses; £6.46M relates to the administration of IPSA’s operations and the Compliance Officer function in its first full operational year; and 1.48M relates to residual set up and transitional costs (which are within the £6.6M start-up costs previously reported).
5 July 2010
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Independent Parliamentary Standards Authority
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Part I
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£
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Request for Resources 1: Establishment, operation and administration of the Independent Parliamentary Standards Authority and all activities connected to its purpose
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156,581,000
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Total net resource requirement
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156,581,000
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Net cash requirement
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161,071,000
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Amounts required in the year ending 31 March 2011 for expenditure by the Independent Parliamentary Standards Authority on:
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RfR 1: Establishment, operation and administration of the Independent Parliamentary Standards Authority and all activities connected to its purpose
Establishment, operation and administration of the Independent Parliamentary Standards Authority, and all activities connected to its purpose. Determination and administration of an expenses scheme for Members of Parliament; payment of salaries and expenses of Members of Parliament and their staff. Conducting investigations carried out under the auspices of the Office of the Compliance Officer.
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The Independent Parliamentary Standards Authority will account for this Estimate.
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£
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Net total
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Allocated in
Vote on Account
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Balance to
complete
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RfR 1
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156,581,000
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103,509,000
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53,072,000
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Total net resource requirement
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156,581,000
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103,509,000
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53,072,000
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Net cash requirement
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161,071,000
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103,536,000
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57,535,000
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Part II: Subhead detail
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£'000
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2010-11
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2009-10
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2008-09
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Provision
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Provision
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Outturn
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Resources
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Capital
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Admin
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Other Current
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Grants
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Gross Total
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A in A
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Net Total
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Capital
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Non-operating
A in A
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Net Total Resources
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Net Total Resources
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1
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2
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3
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4
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5
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6
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7
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8
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9
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10
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RfR 1: Operation of the Independent Parliamentary Standards Authority and all activities connected to its purpose
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A
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-
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148,638
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-
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148,638
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-
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148,638
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4,290
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-
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4,448
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-
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B
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6,460
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6,460
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6,460
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C
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1,483
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1,483
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1,483
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761
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Total
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Spending in Departmental Expenditure Limits (DEL)
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Central Government spending
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Establishment, operation and administration of the Independent Parliamentary Standards Authority and all activities connected to its purpose.
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7,943
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148,638
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-
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156,581
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-
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156,581
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5,051
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-
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4,448
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-
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Total for Estimate:
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7,943
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148,638
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-
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156,581
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-
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156,581
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5,051
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-
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4,448
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-
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Key
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A
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MPs' pay, staffing and expenses budget
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B
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IPSA administration
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C
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Residual set up costs
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Part II: Resource to cash reconciliation
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£'000
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2010-11
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2009-10
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2008-09
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Provision
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Provision
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Outturn
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Net Resource Requirement
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156,581
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4,448
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-
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Voted capital items
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Capital
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5,051
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2,200
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-
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Less Non-operating A-in-A
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-
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-
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-
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Total net voted capital
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5,051
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2,200
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-
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Accruals to cash adjustment
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Adjustments to remove non-cash items:
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Depreciation
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-411
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-77
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-
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New provisions and adjustments to previous provisions
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-
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-
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-
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Profit/loss on sale of assets
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-
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-
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-
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Prior period adjustments
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-
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-
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-
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Other non-cash items
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-150
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-
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-
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Increase (+) / Decrease (-) in stock
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-
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-
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-
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Increase (+) / Decrease (-) in debtors
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-
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-
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-
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Increase (-) / Decrease (+) in creditors
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-
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-
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-
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Use of provisions
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-
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-
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-
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Total accruals to cash adjustments
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-561
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-77
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-
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Excess cash to be CFERd
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-
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-
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-
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Net Cash Requirement
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161,071
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6,571
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-
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Part III: Extra receipts payable to the Consolidated Fund
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No CFER income or receipts are expected in 2010-11 or 2009-10. None were received in 2008-09.
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Forecast Operating Cost Statement
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£'000
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2010-11
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2009-10
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2008-09
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Provision
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Provision
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Outturn
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Net Administration Costs
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RfR 1
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7,943
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4,448
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-
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Total Net Administration Costs
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7,943
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4,448
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-
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Net Programme Costs
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RfR 1
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148,638
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-
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-
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Total Net Programme Costs
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148,638
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-
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-
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Total Net Operating Cost
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156,581
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4,448
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-
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of which:
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Net Resource Requirement
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156,581
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4,448
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-
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Non-voted Expenditure
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-
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-
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-
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Consolidated Fund Extra Receipts
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-
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-
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-
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Reduction in planned spend unable to be included in Estimate
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-
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-
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-
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Resource Budget
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156,581
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4,448
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-
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Notes to the Main Estimate
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Reconciliation of resource expenditure between Estimates, Accounts and Budgets
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£'000
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2010-11
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2009-10
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2008-09
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Provision
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Provision
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Outturn
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Net Resource Requirement (Estimates)
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156,581
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4,448
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-
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Adjustments to remove:
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Provision voted for earlier years
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-
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-
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-
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Adjustments to additionally include:
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Non-voted expenditure in the OCS
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-
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-
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-
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Consolidated Fund Extra Receipts in the OCS
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-
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-
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-
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Reductions in planned spend unable to be included in Estimate
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-
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-
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-
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Other adjustments
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-
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-
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-
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Net Operating Cost (Accounts)
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156,581
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4,448
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-
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Adjustments to remove:
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Capital grants
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-
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-
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-
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European Union income related to capital grants
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-
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-
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-
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Voted expenditure outside the budget
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-
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-
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-
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Adjustments to additionally include:
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Other Consolidated Fund Extra Receipts
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-
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-
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-
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Resource consumption of non departmental public bodies
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-
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-
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-
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Unallocated resource provision
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-
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-
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-
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Other adjustments
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-
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-
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-
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Resource Budget (Budget)
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156,581
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4,448
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-
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of which:
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Departmental Expenditure Limits (DEL)
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156,581
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4,448
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-
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Annually Managed Expenditure (AME)
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-
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-
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-
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Reconciliation of capital expenditure between Estimates and Budgets
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£'000
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2010-11
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2009-10
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2008-09
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Provision
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Provision
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Outturn
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Net Voted Capital (Estimates)
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5,051
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2,200
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-
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Adjustments to remove:
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Provision voted for earlier years
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-
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-
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-
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Adjustments to additionally include:
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Other Consolidated Fund Extra Receipts
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-
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-
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-
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Capital spending by non-departmental public bodies
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-
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-
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-
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Capital grants
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-
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-
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-
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European Union income related to capital grants
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-
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-
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-
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Supported capital expenditure (revenue)
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-
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-
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-
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Capital spending by levy funded bodies
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-
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-
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-
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Unallocated capital provision
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-
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-
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-
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Reductions in planned spend unable to be included in Estimate
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-
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-
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-
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Other adjustments
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-
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-
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-
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Capital Budget (Budget)
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5,051
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2,200
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-
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of which:
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Departmental Expenditure Limits (DEL)
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5,051
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2,200
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-
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Annually Managed Expenditure (AME)
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-
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-
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-
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Notes to the Main Estimate (continued)
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Explanation of Accounting Officer responsibilities
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The Accounting Officer prepares resource accounts for each financial year.
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The following Accounting Officer appointments have been made for the Request for Resources within this Estimate:
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Request for Resources 1:
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Andrew McDonald, Interim Chief Executive Independent Parliamentary Standards Authority
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who has personal responsibility for the proper presentation of the resource accounts and their transmission to the Comptroller and Auditor General. He is also responsible for the use of public money and stewardship of assets.
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In discharging these responsibilities particular regard is given to:
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observing any accounting and disclosure requirements (including any Accounts Direction) and applying suitable accounting policies on a consistent basis;
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making judgements and estimates on a reasonable basis;
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stating whether applicable accounting standards, as set out in the Financial Reporting Manual (FReM), or an organisation’s version of it, have been followed, and explain any material departures in the accounts; and
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preparing the accounts on a going concern basis.
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The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which an Accounting Officer is answerable, for keeping proper records and safeguarding assets, are set out in chapter 3 of Managing Public Money issued by the Treasury.
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Notes to the Main Estimate (continued)
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Analysis of operating appropriations in aid (A in A)
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£'000
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2010-11
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2009-10
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2008-09
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Provision
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Provision
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Outturn
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Total Operating A in A
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-
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-
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-
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Analysis of non-operating appropriations in aid (A in A)
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£'000
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2010-11
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2009-10
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2008-09
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Provision
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Provision
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Outturn
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Total Non-Operating A in A
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-
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-
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-
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Notes to the Main Estimate (continued)
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Analysis of Consolidated Fund extra receipts
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£'000
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2010-11
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2009-10
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2008-09
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Provision
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Provision
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Outturn
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Income
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Receipts
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Income
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Receipts
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Income
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Receipts
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Total
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-
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-
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-
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-
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-
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-
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Notes to the Main Estimate (continued)
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Departmental Expenditure Limits and Administration Budgets
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£'000
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Voted
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Non-voted
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Total
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Resource DEL
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156,581
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-
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156,581
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of which:
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Administration budget
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7,943
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-
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7,943
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Capital DEL†
|
5,051
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-
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5,051
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Less Depreciation††
|
-411
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-
|
-411
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Less other non-cash items
|
-
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-
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-
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Total DEL
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161,221
|
-
|
161,221
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† Capital DEL includes items treated as Resource in Estimates and accounts but which are treated as Capital DEL in budgets.
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†† Depreciation, which forms part of Resource DEL, is excluded from Total DEL since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.
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Comparison of provision sought with final provision and forecast outturn for the previous year
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Cash which may be retained to offset expenditure
|
|
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|
|
|
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|
|
£'000
|
|
|
|
|
|
|
2010-11
|
2009-10
|
2008-09
|
|
Provision
|
Provision
|
Outturn
|
|
|
|
|
|
|
|
|
|
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Cash which may be retained by the department to offset expenditure in the year due to its relationship with income (operating and non-operating) that has been, or will be, appropriated in aid.
|
-
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-
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-
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