Highways Agency Annual Report and Accounts 2011-2012

SECTION 10: Financial Statements
22 Related Party Transactions
The Agency is an Executive Agency of the Department for Transport. The Department is regarded as a
controlling related party. During the year the Agency had a significant number of transactions with the
Department. In addition the Agency had transactions with other Government departments and agencies,
principally Treasury Solicitors, Department for Communities and Local Government, Central Office of
Information, Valuation Office Agency and a number of Local Authorities. In addition the Agency had
transactions with QinetiQ, a public limited company in which the Ministry of Defence holds shares.
The Agency has a contract with Lex Autolease Ltd whose ultimate parent company is Lloyds Banking
Group in which the Government holds an interest. As per Note 23, the Agency draws monies from Escrow
accounts held at Lloyds TSB.
There were no Board member interests in third party transactions.
23 Third Party Assets
The Agency, under Section 278 of the Highways Act 1980, receives payment in advance of works. These
are paid into interest bearing Escrow Accounts at Lloyds TSB Bank. Monies are drawn down from the
Escrow accounts by the Agency as work progresses.
The Agency was appointed as the co-ordinator for a Coordination Action under the EU Sixth Framework
Programme. It holds a Lloyds TSB Euro bank account where funding from the EU is deposited and
subsequently distributed to the eleven partners across Europe. The final action of this project is to
reimburse partners, including the Agency, for the remaining costs incurred in this collaboration action.
These are not Agency assets and therefore are not included in the accounts.
31 Mar 2012 31 Mar 2011
£000 £000
Lloyds TSB Escrow Bank Accounts 2,035 2,944
Lloyds TSB Euro Bank Account 115 111
2,150 3,055
24 Events after the reporting period
There have been no significant events between the financial reporting date and the date of these Financial
Statements. These Financial Statements are laid before the Houses of Parliament by the Secretary of
State of the Department for Transport. International Accounting Standard (IAS) 10 requires the Agency to
disclose the date on which the accounts are authorised for issue. This is the date the certified accounts
are despatched by the Agency’s management to the Secretary of State of the Department for Transport.
This authorised date of issue is 11 July 2012.
Highways Agency Annual Report and Accounts 2011-12