Highways Agency Annual Report and Accounts 2011-2012

Financial Statements: SECTION 10
20 (b) Contingent Assets
The Agency seeks to dispose of property surplus to requirement promptly at the best price reasonably
obtainable in the market. Sometimes there is uncertainty over potential use of the property and planning
permissions, and in these cases the Agency may decide to sell the property at the underlying land value.
In these circumstances, the Agency will incorporate a “clawback” clause into the terms of the sale,
under which it is able to reclaim a percentage of any increase in value arising from a grant of planning
permission, for a given term after the sale has been agreed.
As it is not known for some years after the initial disposal whether any further income will arise, the Agency
has a contingent asset relating to future values. In 2011-12 amounts totalling £318,000 (2010-11 £12,000)
were received under these arrangements.
21 Losses and special payments
Managing Public Money requires a statement showing losses and special payments by value and by type
to be shown where they exceed £250,000 in total and those that, individually, exceed £250,000. Losses
may relate to cash and store losses, bookkeeping losses, losses arising from a failure to make adequate
charge for the use of public property or services, fruitless payments and claims abandoned as well as
frauds. Special payments may relate to extra-contractual, extra-statutory and ex-gratia payments and
compensation.
2011-12 2010-11
Losses: £000 £000
Bookkeeping/cash losses: 44 cases (2010-11: 21 cases) 772 394
Fruitless payments: 1 case (2010-11: 8 cases) 37 42,142
Claims abandoned/store losses: 3,699 (2010-11: 1,948) 5,530* 5,524
Special Payments:
Ex-gratia compensation: 4 cases (2010-11: 6 cases) 25 41
* The losses disclosed above include 3,078 cases valued at £5,066,000 (2010-11: 1,863 cases valued at
£4,510,111) for damage to the road network where the culprit could not be identified or otherwise pursued
for costs.
During 2011-12 there were two cases of £267,000 and £429,000 where debts from third parties have been
written off due to book-keeping errors in prior years (2010-11: one case of £366,000).
During 2010-11, eight road schemes in the course of development were cancelled as a result of the
Government decision, taken as part of the 2010 Spending Review, to proceed with 14 other schemes to be
started between 2011-12 and 2014-15.
During 2011-12 there were several confirmed incidents of metal theft across the Agency’s road network.
The cost to repair and reinstatement has been estimated at £5.9 million. This excludes any costs arising
from the loss of service.
Highways Agency Annual Report and Accounts 2011-12