Annual Report 2006-2007 - Cafcass

Annual Report and Accounts
Children and Family Court
Advisory and Support Service
An executive non-departmental public
body of the Department for Children,
Schools and Families

Children and Family Court Advisory and
Support Service
Annual Report and Accounts 2006–07
An executive non-departmental public body of the Department for Children,
Schools and Families
To the Secretary of State for Children, Schools and Families
Laid before Parliament by the Secretary of State for Children, Schools and Families
pursuant to schedule 2, paragraph 12(3) of the Criminal Justice and Court Services
Act 2000, and in respect of the accounts on behalf of the Comptroller and Auditor
General under schedule 2, paragraph 13(4) of the Criminal Justice and Court
Services Act 2000.
Ordered by the House of Commons to be printed on 19th July 2007.
HC 781 London – The Stationery Office £18.00

Our purpose
Cafcass has a statutory responsibility in England to ensure that children
and young people are put first in family proceedings, their voices are
properly heard, the decisions made about them by courts are in their
best interests and they and their families are supported throughout the
process, no matter what form their family takes in the modern world.
We operate within the law set by Parliament and under the rules and
directions of the family courts. Our role is to:
• safeguard and promote the welfare of children
• give advice to the family courts
• make provision for children to be represented
• provide information, advice and support to children and their families.
We are a non-departmental public body accountable to the Minister for
Children, Young People and Families in the Department for Education
and Skills (DfES). We work within the strategic objectives agreed by our
sponsor department and contribute to wider government objectives
relating to children.
We have a role in relation to measures outlined in Every Child Matters,
which sets out five key outcomes for children, young people and families
– being healthy, staying safe, enjoying and achieving, making a positive
contribution and experiencing economic well-being.
Please note, while we refer to the Department for
Education and Skills throughout this Annual Report and
Accounts, under the departmental changes announced
by the Prime Minister on 28th June 2007, Cafcass will be
sponsored by the new Department for Children, Schools
and Families.
© Crown Copyright 2007
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acknowledged as Crown copyright and the title of the document specified.
Any queries relating to the copyright in this document should be addressed to
The Licensing Division, HMSO, St Clements House, 2-16 Colegate, Norwich,
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Fax: 01603 723000 or e-mail: licensing@cabinet-office.x.gsi.gov.uk.

Contents
Overview by the Chair 2
Chief Executive’s Report 3
Section 1: Management Commentary 4
About Cafcass 4
Achieving our Objectives 12
How We Met our Performance Indicators 30
Section 2: Organisational Structure 38
Section 3: Statement of Accounting Officer’s Responsibilities 40
Section 4: Statement on Internal Control 41
Section 5: Remuneration Report 44
Section 6: Accounts 2006–07 47
Introduction to the Accounts 2006–07 47
The Certificate and Report of the Comptroller and
Auditor General to the Houses of Parliament 50
Financial Statements 52

Overview by
the Chair
Chairing a non-departmental public body, especially
one engaged in frontline service delivery, is never
simple. But some things make it easier. First, it is
important to have a skilled and experienced Board,
which is able to take difficult decisions with confidence
and trust in each other and in the Chief Executive.
The second and crucial thing is having a Chief
Executive who is able to meet the huge challenges we all face with skill, wisdom, diplomacy and
an unbelievable capacity for hard work. Cafcass is fortunate to have both of these and our need for
both of them as we go forward into next year is going to be even greater. I record my most sincere
thanks to Baroness Howarth, Deputy Chair, to all Board members, to Anthony Douglas and to all
our staff for another year in which their contributions have been far beyond what can reasonably
be expected.
I said last year that Cafcass was no longer a problem
organisation. That is certainly true, as our performance
against our targets in virtually all areas shows. What a
relief it must be to the Audit Committee, in particular to
its indefatigable Chair, Nick Stuart, that meetings are no
longer about non-compliance, but about targets achieved.
These achievements are not just about ticking boxes, but
about the whole Cafcass workforce being more able to
focus on the outcomes for children and being prepared to
make the necessary changes in working practice in order
to deliver to the highest possible standards. We may not
be a problem organisation any longer, but we certainly
still have problems and we have to pursue all-round
improvement relentlessly and with passion.
We should be proud of the progress we have made but
mindful of all that remains to be done. Improving our
practice is a major priority and the changes required from
all our staff to their ways of working will not be easy to
achieve. The Board is confident that, led by an exceptional
Chief Executive and senior team, we shall continue to
implement the changes necessary to deliver the service
which the children and families who rely on us need
and deserve.
Baroness Pitkeathley OBE
The Statement of Priorities for next year (see opposite)
sets out a programme which any organisation might find
challenging, but our leadership is now so strong and our
staff so committed and skilled that I know we can meet
those challenges. Cafcass is now a highly respected
organisation and I know that we can count on the support
of the Department for Education and Skills (DfES), the
judiciary and all our external partners to help us to do so.
| Cafcass Annual Report and Accounts 2006–07

Chief
Executive’s
Report
Cafcass provides expert analysis and clear recommendations to those with a caring
responsibility for understanding the needs, wishes and feelings of children and young people
whose cases are heard in the English family courts. But we do much more than that.
We work directly with children, families and professionals to make the most effective
contribution we can to improving the quality of life of all the children in need and children in care
referred to us by the family courts. We are working hard to be clearer about the evidence base for
our work, and to demonstrate the value we add.
In the year covered by this Annual Report we developed
far stronger frameworks in vital practice areas like
safeguarding. We delivered practice improvements in
the assessment of risk in private law cases involving
domestic violence, progress which was validated by our
inspectors. We improved our response times in public law
cases, in a year when demand for this service rose, as it
has done consistently in recent years. We strengthened
our infrastructure and this was clear in the progress
reports considered and approved by our Audit Committee.
We delivered a balanced budget and completed several
important change programmes using in-year funding
provided by DfES. This included completion of the roll-out
of our new Case Management System (CMS) to all teams;
an upgrade of our IT network and the start of hardware
replacement; and expansion of important practice
programmes like Extended Dispute Resolution and Family
Group Conferencing.
We face the same pressures as all frontline organisations,
and we will have to work just as hard in 2007–08 and future
years to stay on top of work that is often complex, tough
and draining, as well as rewarding, for frontline staff.
I would like to pay tribute to all my staff for their continued
commitment to the children and young people we have a
duty to support.
What then of the year ahead The following is our
Statement of Priorities for 2007–08.
• Implementing our new National Standards, which were
launched on 1st June 2007.
• Achieving a step change in performance in teams where
this is needed, and consolidating high performance
levels in those teams that have reached that level and
standard already.
• Carrying out development work so we are compliant
with the New Public Law Outline (revised Judicial
Protocol) by April 2008.
• Roll-out of our new national private law model, in
synch with the next stages of the President’s Private
Law Programme.
• Achieving measurably higher levels of staff engagement
in corporate programmes.
• Implementing our new national structure, following the
2006–07 Organising for Quality consultation, including
the development of new roles such as Family Support
Worker and Practice Supervisor.
• Strengthening external partnerships, as part of an
expanding commissioning role and function.
Our programme for 2007–08 is ambitious, but no more
ambitious than our achievements last year, as I hope this
Annual Report is able to demonstrate. We have received
a 5.8% budget increase for 2007–08 from DfES, which
provides a platform for much of what we need to do in the
coming year. We are in our seventh year. Like any stillyoung
organisation, we are maturing and developing fast,
albeit with some things we could have done differently and
with frustrations along the way. I would say that is part of
the learning process. Our aim is continuous improvement
in all we do and next year we will continue striving to
that end.
Anthony Douglas
Chief Executive’s Report |

Section 1: Management Commentary
Section 1:
Management
Commentary
About Cafcass
Cafcass champions the interests of children 1 involved in family proceedings, advising the family
courts in England on what it considers to be in the best interests of individual children.
Cafcass’ professionally qualified social work staff, called
Family Court Advisers (FCAs), work exclusively in the
family courts. Examples of matters that may be decided by
family courts are:
• When children are subject to an application for
care or supervision proceedings by social services
(public law). In these instances our FCAs act as
Children’s Guardians.
• An adoption application (public law). In these instances
our Family Court Advisers act as Reporting Officers.
• When parents who are separating or divorcing can’t
agree on arrangements for their children (private
law). In these instances our FCAs act as Children and
Family Reporters, or as Guardians ad Litem if separate
representation of the rights and interests of the child is
required (Rule 9.5 cases).
Our vision 2
Cafcass will:
1. Put children first.
2. Keep children as safe as possible.
3. Ensure each child has a voice that is heard,
understood and respected in the family courts, in
a way that is consistent with and responds to each
child’s wishes, competence and understanding.
4. Start with the child and stay with the child, throughout
the life of cases.
5. Be clear about the needs, wishes and feelings of
individual children in family court cases, as the core
business of Cafcass.
6. Make a contribution to securing the safest, highquality
outcomes possible for each child, and evaluate
this contribution after a case is closed.
1 The terms “children” and “child” are used throughout this Annual Report to refer to children and young people
2 Cafcass National Standards
| Cafcass Annual Report and Accounts 2006–07

7. Respect the importance of family life and family
members for each child.
8. Respect the diversity and individuality of each child
and family.
9. Throughout the organisation, keep the focus on
frontline services.
10. Maintain our independence and objectivity at all times
in all circumstances.
Our values
Child focus – engage with children and families so what we
do is determined by their needs.
Equality – we believe all children and young people have
equal worth and equal rights.
Honesty and openness – measure and account for
what we do so that our performance is open to scrutiny;
welcome feedback on our work and provide a transparent
procedure for complaints.
Realism – seek the best we can for all the children and
families we serve within the resources available to us.
Overview of service provision
This year we have again seen a rise in public law care
cases and Rule 9.5 cases (in which children in complex
private law cases are separately represented). Both of
these types of cases require more resources than our
other work and can take 40–50 weeks on average to
complete. Cases started in the second half of 2006–07
also added to the in-year demand for our resources and
absorbed our practitioner capacity to its maximum.
We are also spending more time on dispute resolution
work in court, which has successfully led to a decrease in
the court ordering Section 7 reports. This is in line with
current changes to the way in which we carry out our
private law work.
In contrast with previous years, the number of overall
applications to court is decreasing. We believe that is
a clear indication that court diversion approaches are
becoming more successful.
Public law
When a local authority makes an application to court
under the Children Act 1989, we are required by legislation
to provide a Children’s Guardian who is a qualified and
experienced social worker. The Children’s Guardian is
independent of social services, the court and all others
involved in the case.
Figure 1 provides an overview of public law demand over
the last three financial years. Care proceedings made up
the majority of public law proceedings, accounting for just
over half of the requests (6,791). Even small increases in
such cases can have a big impact on resources as they
will take, on average, nearly two-and-a-half times more
resources than a non-care case. These cases have been
steadily increasing and this year we have seen an increase
in care cases of 2.7%.
Overall, we responded to a total of 12,104 public law
requests of all types during 2006–07, compared with
12,775 in 2005–06, a decrease of 5.3%. This includes other
types of proceedings such as adoption, discharge of care
and emergency protection.
Figure 1: Public law demand 2006–07
14000
12000
10000
8000
6000
4000
2000
0
Total public law cases
Public law care cases
2004–05 2005–06 2006–07
Section 1: Management Commentary |

Private law
Our approach to working with families in private law
continues to change, as the President’s Private Law
Programme continues to develop. This advocates a First
Hearing Dispute Resolution Appointment (FHDRA) to be
held between four and six weeks after an application is
issued. For most cases this includes a dispute resolution
session using Cafcass practitioners.
We have worked with the courts and the judiciary to
introduce dispute resolution schemes in family courts
throughout the country in an effort to avoid contested
hearings. We are working hard towards our goal to
invest the time in working directly with families to reach
agreement where it is safe to do so, thereby reducing
conflict, rather than writing lengthy reports for court.
Research has shown that ongoing conflict within a family
is damaging for children, which is why we are making
this investment.
In 2006–07 our practitioners participated in 26,344
dispute resolution meetings, spending 57,880 hours on
these cases. This is an increase in time spent on early
intervention of 33.6%.
“In 2006–07 the time we spent on early
intervention increased by 33.6%.”
Where agreements cannot be reached through dispute
resolution, the court may order a full report on the welfare
of a child or children involved in private law proceedings.
This is done under Section 7 of the Children Act 1989 and
the court will clarify the specific areas for the FCA to cover
in their report. A private law case can involve more than
one type of order and frequently leads to more than one
Section 7 report.
We responded to 23,942 requests for private law reports
during 2006–07, compared with 26,144 in 2005–06,
a reduction of 8.4%. This suggests that our dispute
resolution work as an early intervention measure is
becoming more successful and is supported by the fact
that around 60% of our interventions are achieving full
or partial agreement. This represents a major shift to
preventative work across the entire English family justice
system. Figure 2 provides an overview of private law
demand over the past three financial years.
When a child is involved in a particularly complex and/or
protracted private law case, he or she can be separately
represented by an FCA, under Rule 9.5 of the Family
Proceedings Rules (1991). The demand for this type of
case has remained consistently high over the past three
years. In 2006–07, we responded to a total of 1,206 cases,
compared with 1,035 in 2005–06, an increase of 16.5%.
Evidence is coming through that Rule 9.5 is an effective
measure in resolving disputes and supporting children in
some of our most complex private law cases.
Cafcass is also involved in Family Assistance Orders
(FAOs) at the end of proceedings as a way of providing
social work support to families experiencing difficulties
after separation or divorce. We responded to 351 Family
Assistance Orders during 2006–07, compared with 645
in 2005–06. It may be that greater use of Rule 9.5 and the
impact of our early dispute resolution work have meant
that courts are making fewer FAOs for direct work
with families.
Figure 2: Private law demand 2006–07
60000
50000
40000
30000
20000
10000
0
Private law reports
Total time spent on dispute resolutions
2004–05 2005–06 2006–07
| Cafcass Annual Report and Accounts 2006–07

Figure 3 provides an overview of these two additional types
of private law proceedings.
Figure 3: Other private law demand 2006–07
1400
1200
1000
800
600
400
200
0
Rule 9.5 cases
Family Assistance Orders
2004–05 2005–06 2006–07
Children in cases
Figure 4 shows the age and gender of the children we
worked with in 2006–07. We promoted the interests of a
total of 80,536 children and young people involved in our
services. This comprised 40,813 boys and young men
(50.7%) and 39,723 girls and young women (49.3%). This
figure does not, however, include all of our support work
with contact centres. We estimate that we are involved with
around 100,000 children each year.
Figure 4: Children in cases – age and gender profile 2006–07
16000
14000
15285
14677
12000
10000
8000
11748
11540
9774
9635
6000
4000
2000
0
3568 3375
438 496
Under 1 1 to under 5 5 to under 10 10 to under 16 16 and 17
Male
Female
Age
Section 1: Management Commentary |

case study
Managing our resources: adapting to rising public law demand
Focusing on dispute resolution for private law cases is helping our Liverpool team to manage the increase in public
law cases.
“Like other teams across the country we are seeing a rise in public law cases, which puts practitioners under great
pressure,” says Colin Derby, Service Manager. “Over the past year we’ve seen a 35% increase in public law cases
and a 60% increase in Rule 9.5 appointments.”
Liverpool has dealt with this pressure partly by working with local judges to focus on dispute resolution for all
private law cases.
Designated Family Judge Margaret De Haas QC says, “It is important that the judiciary and courts work with
Cafcass staff to provide as flexible a service as possible to meet the needs of children and families. If this is
achieved by creative use of the dispute resolution scheme rather than the routine ordering of Section 7 reports,
then this should be done.”
The FCA and the judge assess each case at the first hearing with the parents and decide what action is necessary.
This can range from agreement on the day to an investigation that could include all those issues usually
encompassed within a Section 7 report. The judge and the FCA then negotiate a timeframe for the case based on
the needs of the child and the workload of the FCA.
“Previously as a team we were struggling to complete reports in less than sixteen weeks,” says Colin. “But now,
even allowing for FCAs’ busy schedules, matters are being dealt with more speedily. So the children benefit from
earlier action and the FCAs also benefit from being better able to manage their own workloads.”
The shift can be seen quite clearly on the allocation board in Liverpool.
“Eighteen months ago, the private law and public law teams in Liverpool merged and the board showed a 50/50
split in work,” says Colin. “Now 75% of our workload is public law cases.”
| Cafcass Annual Report and Accounts 2006–07

The work of Cafcass Legal
Cafcass has a team of five lawyers, led by a
Head of Legal Services, who undertake a range
of roles.
High Court children’s cases Cafcass lawyers undertake
the legal conduct of specialist children cases such
as wardship, medical treatment and other inherent
jurisdiction cases, particularly complex cases under the
Human Fertilisation and Embryology Act and international
jurisdiction disputes. They also support the work of our
FCAs in the Cafcass High Court team, who work on the
categories of cases listed above. Cafcass Legal also
operates a highly valued and well-regarded advice line for
all our FCAs, the judiciary and children law professionals,
and provides a 24-hour advice and representation service
for out-of-hours emergency children cases.
Guardian needs a lawyer. The welfare of the child is the
most important issue.
Corporate support The Head of Legal Services provides
legal advice to the Cafcass Board and the lawyers advise
the senior management team. In addition, the lawyers
handle civil litigation by or against Cafcass, and advise on
policy and contract matters.
Training work In the 2006–07 training year, Cafcass
lawyers arranged to give 114 days’ training for Cafcass
practitioners around the country, including roadshows
highlighting domestic violence issues, and provided legal
input into workshops focusing on the development of our
My Needs, Wishes and Feelings pack.
Advocate to the Court cases Lawyers from Cafcass
Legal act as Advocate to the Court when invited to do so
by the Family Division of the High Court. This involves
researching legal issues and advising the court on novel or
contentious areas of law.
Separate representation for practitioners The
Cafcass lawyers provide separate legal representation
to Guardians in proceedings where the Guardian and
the child are in conflict over what is in the child’s best
interests and the child is competent to instruct his or
her solicitor directly. The lawyers will respond either
by attending court themselves, sometimes instructing
counsel if necessary, or authorising funding for a Cafcass
practitioner to be represented by a solicitor in private
practice. Separate representation is not automatic, even
if the court has given permission, but will be provided if,
for example, there is a legal issue in the case on which the
10 | Cafcass Annual Report and Accounts 2006–07

case study
Cafcass Legal and the High Court team: Baby A and Baby B
A British Asian couple had entered into a surrogacy agreement with the assistance of an agency that introduces
potential surrogate mothers to couples who are seeking to become parents. The surrogate mother was a white,
single woman, who was implanted with two eggs from the commissioning woman, fertilised with the sperm of the
commissioning man. At an early stage in the pregnancy, however, the surrogate mother changed her mind about
handing the twin babies over to their genetic parents. The case reached the High Court and involved a Guardian and
a Cafcass lawyer.
The commissioning couple was not told of the babies’ date of birth or the names they had been given, but they
applied to the court for a residence order. Under the Human Fertilisation and Embryology Act, a surrogate
mother is automatically the “mother” of the babies for all legal purposes, even though she has no genetic link
with them, and a commissioning man whose sperm has fertilised the egg is automatically the legal “father”. The
commissioning father and his wife asked the court to give them the two new born babies and remove them from the
surrogate mother. Two expert witnesses were instructed to assist the court with the cultural issues surrounding
these children, who were of Asian origin but with a white mother, and to assess the impact on them of the
circumstances of their birth.
The Guardian carried out a very delicate exercise in completing her enquiries, as all three parties were very
emotionally involved. The Guardian’s conclusion, supported by the experts’ advice, was that the twins should reside
with their genetic parents. The case came before a High Court judge. As a dramatic conclusion, on the second day
of the hearing the surrogate mother decided to give up the children and not seek to maintain any contact with them.
The two babies were delivered to the home of the commissioning couple within a few hours.
Section 1: Management Commentary | 11

Achieving our Objectives
We set out our ambitions in a two-year business plan for
2005 to 2007. Many targets were met in 2005–06 while
some took the full 2005–07 period to deliver, as the
impact of both internal and external changes resulted in
fresh priorities emerging during the year. Our overriding
priorities were to transform services and modernise
practice, and to transform the organisation.
Transforming services and
modernising practice
Our objectives to help us achieve this broad aim are:
1. Improving outcomes for children in line with Every
Child Matters (being healthy, staying safe, enjoying and
achieving, making a positive contribution, economic
well-being) by modernising practice. page 13
2. Mainstreaming race equality and diversity in all our
work, in particular in teams. page 16
3. Developing a more highly trained and skilled
workforce. page 18
4. Supporting children and families and improving
our services through working effectively with all
our partners. page 20
Transforming the organisation
Our objectives to help us achieve this broad aim are:
1. Becoming a more strategic organisation in order to
represent children and their interests. page 22
2. Strengthening leadership and management at all levels.
page 24
3. Developing a workforce strategy to recruit and
retain a flexible workforce which better reflects the
communities we serve and makes Cafcass the employer
of first choice for professionals in our sector. page 26
4. Being more efficient and adding value in all we do.
page 28
12 | Cafcass Annual Report and Accounts 2006–07

Transforming services and
modernising practice
Objective 1
Improving outcomes for children in line with Every Child
Matters by modernising practice
A number of important milestones were achieved during
the past year on our continuing journey to improve
outcomes for children by modernising our practice.
We have widely discussed the changes to our working
practices, both internally and with our partners in the
family justice system. New National Standards have now
been agreed, which set out what service users, partner
agencies and practitioners in the family justice system can
expect from Cafcass.
We have introduced a new Safeguarding Framework and
a revised domestic violence toolkit. We are continuing
to roll out a programme of training on cases involving
domestic violence for all our operational staff, including a
two-day course on communicating with children, provided
by Barnardo’s. We have made considerable progress in
embedding the President’s Private Law Programme and
have dispute resolution schemes in place in all courts in
the country. We will seek to embed further changes in
our practice through our next three-year Strategic
Business Plan.
Safeguarding Framework The new Safeguarding
Framework was implemented from 1st April 2007. It pulls
together all guidance and procedures relating to our duty
to safeguard and promote the welfare of children, has
been produced following extensive internal and external
consultation and has received endorsement from the
NSPCC. We will be evaluating its impact on practice in
January 2008.
“The NSPCC welcomes this
Framework. It is a clear and
comprehensive document, which
clarifies the responsibilities of Cafcass
and other agencies, and the role of
staff and children and families.”
NSPCC comment on the Cafcass
Safeguarding Framework
A new information-sharing protocol about to be agreed
with the police will also improve our ability to screen for
risk and carry out assessments where required.
Safeguarding
with other
agencies
Safeguarding
children &
families
Safeguarding
with staff
Cafcass as a safeguarding agency
Dispute resolution schemes Dispute resolution schemes
have been developed in all parts of the country and
have proved successful in terms of better outcomes for
families – around 60% of our interventions are achieving
full or partial agreements. We need to test the safety and
sustainability of these agreements and are looking at best
practice around the world to develop a single model. Many
of these schemes have directly involved children, and the
focus is to encourage parents to take responsibility for
negotiating their own arrangements and to improve their
communication concerning their children.
“Without this process I don’t think
we would ever have been able to
agree. After two years of bickering
and being unable to reach any kind of
compromise I feel that the process
gave me a forum to finally be heard.”
A service user who participated in the Extended Dispute
Resolution Scheme pilot in Norwich
National Standards The new Standards update the 2003
Cafcass Service Standards and Principles, and are being
phased in from 1st June 2007. The National Standards
seek to:
• promote early intervention and strengthen our approach
to safeguarding children
• ensure that we actively work to understand each child’s
wishes and feelings and take these views into account
• promote constructive agreements and work in a
problem-solving way wherever possible
• improve our internal business processes
• improve our case management, case planning and our
overall quality of service and customer care.
A small number of National Standards need further
development work prior to full implementation and we
have made clear which these are and the date when they
will be implemented.
Section 1: Management Commentary | 13

Inspections During 2006–07 we were congratulated for
implementing the recommendations arising from the
2005 domestic violence inspection by HM Inspectorate of
Court Administration (HMICA). In particular, we audited
our practice for compliance with the policy, provided
better information, implemented a risk assessment
process (including training for staff), worked with other
agencies to promote good practice in domestic violence
situations, and developed national standards for domestic
violence cases. We have developed a clear multi-agency
protocol regarding information exchange and liaison in
domestic violence cases, which will improve services to
vulnerable families.
HMICA inspection reports on private law frontline
practice, practice in adoption proceedings, Family
Assistance Orders and mainstreaming race equality were
received during 2006–07. Inspectors noted promising
areas of practice and development and they also
made recommendations, for which we have designed
improvement plans. Where necessary they have also been
incorporated into our change programme.
Development of practice models Within the framework of
National Standards we have developed guidance on ideal
models of practice for our work with children. By working
closely with our family justice partners, we hope to
implement our ideal practice models in our work in public
law, private law and adoption consistently throughout
England. Within this framework of early engagement,
analysis and intervention in all cases, various models of
practice have been trialled and evaluated, such as:
Family Group Conferencing (private law)
Family Group Conferencing has been offered as an
alternative model of practice for a selected group of
families involved in contact and residency proceedings.
Family group conferences bring families and their wider
support networks together to discuss the issues and make
plans that are in the best interest of their children.
Interviewing Children Scheme (private law)
The Interviewing Children Scheme puts children’s needs,
wishes and feelings at the heart of dispute resolution and
promotes children’s rights within proceedings. It is made
clear to parents and their legal representatives that the
involvement of children is integral to the resolution of
parental conflict. Members of the judiciary have worked in
partnership with Cafcass to identify the cases that would
be appropriate for this scheme.
Guardian and IRO handover meeting (public law)
In public law cases, a model of working is for the Guardian
to meet with the child and the Independent Reviewing
Officer (IRO) for a handover meeting at the closure of the
case. This allows the child to contribute to the ongoing
situation post-proceedings and to reflect on what they
want and need for the future. It also allows them to say
goodbye to the Guardian and for the Guardian to make
sure the child understands that they will still have an IRO
overseeing their welfare.
North East Children’s Conciliation Scheme (private law)
In the North East, all first applications to court (with a few
exceptions) are automatically referred into this scheme.
The court sends out the invitation letter as soon as an
application is received. This scheme allows us to engage
with families much earlier and start resolving issues and
developing a plan before the first court appointment.
14 | Cafcass Annual Report and Accounts 2006–07

case study
North East Children’s Conciliation Scheme
“The reward is in seeing parents and grandparents having experienced court as a positive thing, not as a stressful
thing. Seeing both parties feeling that they’ve achieved something is really good.”
Vanessa Bell, Family Court Adviser, North East
Bob 3 was referred to this scheme after he lost contact with his daughters, following the breakdown of his
marriage. He says this about it:
“How has the scheme helped It’s quite a simple answer because from six months ago I was never seeing the kids;
I hadn’t seen them for years and years. Now I see them every other week – they come up here, they stay overnight,
we go out on days out. The scheme has had a big impact on my life.”
3 Names of service users have been changed throughout this Annual Report
case study
Family Group Conferencing (London)
“Family group conferences are for the children – it’s their conference. The focus is on the child.”
Zafer Yilkan, Service Manager
Mike hadn’t seen his two children since April 2006. He was referred to Family Group Conferencing in August and
eventually came to an agreement with his ex-wife whereby he could see his daughter. His son was reluctant but
was persuaded to take part in the contact visits. Mike now sees them both regularly and says:
“The importance of having the children there was knowing that I cared for them. In court you don’t get to see them
– and they were able to see that I wanted to see them. That was a great advantage. Cafcass gets right to the heart
of the matter and tries to root it out and get you to agree very, very quickly.”
Section 1: Management Commentary | 15

Objective 2
Mainstreaming race equality and diversity in all our
work, in particular in teams
Our five-year Equality and Diversity Strategy, supported
by an action plan, has at its heart our goal of building an
inclusive organisation that promotes equality and diversity
in our services and our work environment. It values
difference – of experience, culture and background. We
have made significant progress in the first year of this fiveyear
action plan.
Family life throughout England is changing all the time.
Approximately four in ten marriages end in divorce and
one in four children lives in one-parent families (this figure
varies according to ethnic group). 4 In our work we can
no longer make assumptions about the impact of these
changing lifestyles on the children and young people we
work with. It is vital that we understand the issues for
every child.
Progress against our key aims Over the period 2005–07
we have made good progress against our four key diversity
objectives: leadership, service delivery, mainstreaming
and inclusivity.
Mainstreaming We are ensuring that equalities and
diversity are integral to all our strategies, policies
and plans and that our behaviour matches our vision.
Our NEDSG has supported the development and
implementation of a number of key policies and guidance,
affecting both our workforce and the delivery of our
services. For example, we have made changes to our
recruitment process, which has increased the black and
minority-ethnic (BME) representation in our workforce.
We have also implemented new diversity monitoring
procedures and produced an Equality and Diversity
Handbook for staff and guidance on a culturally competent
welfare checklist for assessment of children.
Leadership We are putting equality and diversity on
the agenda from the top of the organisation and have
a nominated Board member and a Corporate Director
who actively champion diversity. The National Equality
and Diversity Steering Group (NEDSG) is a dynamic and
proactive group with representation from all parts of
Cafcass. The group members have contributed to the
achievement of national objectives and act as champions
in their local regions. All regions have a regional diversity
forum in place.
Service delivery We want to ensure that the services
we deliver meet the needs of the diverse communities
we serve. We have dedicated our time and attention to
achieving this through national and regional diversity
conferences, training, workshops and discussions at
team meetings. We are improving our understanding of
the diversity of our service users through monitoring,
although we still need to make substantial progress in
this area. We launched an Engagement and Participation
Strategy, which aims to move from just consultation with
service users and stakeholders to genuine engagement
and participation in an open and honest way.
The Cafcass Equality and Diversity Handbook
Inclusivity We are developing a broad and inclusive focus
across all equalities issues, ensuring that our working
practices, policies and procedures do not discriminate
on the basis of race, disability, gender, religion, sexual
orientation or age and have rolled out equality impact
assessment training for all managers. We have amended
our diversity monitoring forms to include issues of
sexuality, and launched our Disability Equality Scheme,
which was developed by a group of disabled staff. Our
duties for both this and our Gender Equality Scheme are
incorporated within our five-year Equality and Diversity
Strategy and action plan. Progress has also been achieved
in the development of support groups such as the National
Black Managers Network.
4 Office for National Statistics
16 | Cafcass Annual Report and Accounts 2006–07

Diversity conference We held a national diversity
conference, “Integrating Diversity and Service User
Involvement”, in March 2007, as part of Equality and
Diversity Week 2007. This conference looked at how we
can integrate diversity into the work of the organisation,
rather than treat it as a separate stream. It featured the
views and work of our Young People’s Board and other
service users, as well as a presentation on cultural
competence by Dr Begum Maitra, a consultant child and
adolescent psychiatrist.
Over 97% of the attendees at the 2007 Cafcass diversity
conference thought that the event was good or excellent
and 95% said that the learning objectives of the course
were achieved. Comments included:
“Really well-organised, with excellent
speakers and workshops.”
“The two key speakers were a breath
of fresh air.”
“Dr Begum Maitra’s workshop was
thought provoking.”
“The young people involved were
excellent.”
Section 1: Management Commentary | 17

Objective 3
Developing a more highly trained and skilled workforce
Continuing professional development is an essential
part of workforce development and will help us to deliver
high-quality services to the children and families we work
with. We set out our commitment to developing our staff
in a five-year Knowledge, Learning and Development
(KLD) Strategy, which was written after a wide-ranging
consultation with internal and external stakeholders,
carried out by three of our Board members who were
supported by a small group of specialist staff.
In the first year of this strategy we have made good
progress, devolving the KLD function to local regions
and keeping a small strategic function nationally. This
has enabled a better relationship between planning and
meeting local staff development needs.
“The trainer is just ace. He knows so
many references and points of contact.
A good result all round.”
Participant at element 2 of training on cases involving
domestic violence
Other nationally delivered courses in 2006–07 included
foundation courses for new starters, recruitment and
selection training, supervision and appraisal training, and
courses on children’s needs, wishes and feelings, equality
impact assessment and project management.
We have invested time in developing the specification for a
Leadership and Management PQ course for our first line
managers, which Birmingham University successfully
bid for. The university is currently developing the course,
which is planned for roll-out in September 2007.
Delivering training Staff have been provided with highquality
training and personal development programmes,
which will support them to carry out their roles to the
highest possible standards. For example, the first intake
of FCAs on the Post Qualification (PQ) social work training
award started early in 2007. Our KLD staff worked with
higher education institutions to provide courses that meet
Cafcass’ needs as a unique socio-legal casework agency
in England.
We also started a three-year rolling programme of
specialist training on working on cases in which domestic
violence is a feature. FCAs, Service Managers and selfemployed
contractors are required to attend all three of its
elements in order to be properly certified.
IT training We developed a bespoke programme of IT
training (Word and Outlook) for our FCAs, who
completed a self-assessment questionnaire and,
depending on the results, received either a one-to-one
session or group training.
Sponsorships Around 50 staff, including a number of
business support staff, received sponsorship for courses
and degrees. We spent £55,000 on sponsorship in 2006–07.
Library and Information Service As part of Cafcass’
commitment to supporting staff in learning from research
and best practice, our new Library and Information Service
(LIS) was launched in September 2006. The LIS is the
product of a partnership with Barnardo’s, giving Cafcass
case study
Sponsorships supporting career development
Vicky Timmins, Regional PA in the East Midlands, is studying for a two-year HND in Business Management, which
will lead to a BA in Business and Management after a third year of study. The KLD Sponsorship Group provided
75% of the funding needed for the 2006–07 element of the course. The modules she has undertaken include data
analysis, business systems and management.
Vicky says, “The section on research has proved particularly interesting. Through the university I have access to
information on many topics – I don’t think I have ever read so much! I am sure I have developed personally too. I
now understand better what motivates people and how best to support my colleagues.”
18 | Cafcass Annual Report and Accounts 2006–07

staff easy access to their collection of approximately
29,000 resources. Books, articles and videos are available
on subjects such as adoption and fostering, child abuse,
and management. This collaborative initiative is great
value for money and strengthens our relationship with
Barnardo’s.
“Thanks very much! Great service
when I phoned to check how to place
my order and great service once I had
made my request. I love the library!”
A Cafcass library user
Research conference Our third annual research
conference, “Putting Children at the Centre: Research
and Child Inclusive Practice”, took place in October
2006 in Birmingham. Chaired by the Chief Executive,
the well-attended conference featured presentations
from researchers, practitioners and young people.
Topics discussed included constructing childhood and
understanding children, gender and social class in
children’s everyday practices and involving children in
service planning and delivery.
Supporting research Our work provides a rich database
for those researching issues affecting children and
families in the family justice system. We have developed
a Research Governance Framework to ensure such
research is purposeful, ethical and informs improvements
to our service delivery. Recent projects include
experiences of children in private law (conducted by the
NSPCC), relocation after parental separation and the best
interests of children, making orders for contact between
children and parents with whom they do not share a
household (sponsored by the Ministry of Justice) and
children’s participation in legal decision-making.
Student placements We are committed to providing
practice-learning placements for social work students,
who are a vital part of our organisational development and
contribute to our longer-term recruitment. Forty students
had placements with Cafcass in 2006–07. We are able to
provide interesting work for students and give them a good
grounding in every aspect of the work of the family courts.
Local authorities have been keen to take on students who
have had a placement with Cafcass, which not only helps
us to establish a good relationship with the local authority
but also provides them with social workers who have a
good understanding of the role of Cafcass.
The Blackburn office has made good use of their facilities
and training room to establish a student unit, which
currently accommodates seven students. Sue Lightbown,
Service Manager, says:
“This has been highly successful and
a positive experience. Having students
stimulates discussion on practice
issues and engenders a strong
learning environment. This is not
only beneficial for the students, but
also lifts the practitioners’ learning.
Students have become an integral part
of our team.”
Section 1: Management Commentary | 19

Objective 4
Supporting children and families and improving our
services through working effectively with all our
partners
We work within the family justice and social care systems
in a collaborative way in order to provide responsive,
joined-up services. We launched our Engagement and
Participation Strategy in October 2006. This was written in
consultation with stakeholder and partner organisations
and service user groups. It sets out how we intend to
embrace the contribution of diverse and representative
groups, and how we will develop effective engagement
structures at national, regional and local levels to deliver
an outward-facing “customer-focused” service, which we
believe will deliver better outcomes.
This year we have recruited a new Head of Commissioning
and Partnerships who will lead the work necessary to
prepare for major new commissioning responsibilities
ahead of the implementation of the Children and Adoption
Act 2006.
Voluntary-sector partnerships We work in partnership
with 226 voluntary-sector organisations (41 more than
last year). During the year we funded our partnerships
with the voluntary sector at a cost of just under £1
million. This included child contact centres, mediation
and other services such as counselling. We received an
extra £200,000 from DfES to support supervised contact
centres and will receive a further £1.5 million in 2007–08
for contact provision. We are also core members of
and contribute financially to all the Local Safeguarding
Children Boards across England.
Figure 5 shows the types of partnership agencies we
funded during 2006–07.
Strategic partnerships and policy alliances We have
a wide range of partnerships and policy alliances with
the voluntary and statutory sectors. For example, we are
working with the Children’s Commissioner and member
organisations of Children’s Rights Officers and Advocates.
We are a member organisation of the Alliance for Child
Centred Care, which promotes good practice for all
looked-after children and work with the National Youth
Advocacy Service. Our Library and Information Service
is the product of a unique partnership with the voluntary
sector (see page 18).
We provide active representation on the Board of the
Children’s Workforce Development Council, which ensures
that the people working with children have the best
possible training and advice.
Relationship management We have appointed
relationship managers, individuals within Cafcass who
support our relationship with a partner organisation
or individual. An example of this working well is the
relationship between Young Voice and Christine Smart,
Children’s Rights Director. As a result there have been
joint initiatives on training and research, and Young Voice
gave input into our children’s feedback tool, Viewpoint.
Local partnerships There are many partnership initiatives
within teams and regions. For example, Families Need
Fathers are working closely with Cafcass in Liverpool, and
Women’s Aid and Cafcass in Rotherham liaise effectively.
Figure 5: Type of partnership 2006–07
Child contact centres (180)
Mediation (27)
Other (eg counselling) (19)
Contact centres are neutral venues where children in separated families can enjoy contact with one (or both) parents, and
sometimes other family members, in a comfortable and safe environment when there is no viable alternative.
20 | Cafcass Annual Report and Accounts 2006–07

Family Justice Councils Cafcass continues to be
represented on the national Family Justice Council (FJC),
the sub-committees and all the local Family Justice
Councils. We have made a significant contribution on
several issues, for example to the work of the Voice of the
Child sub-group. We also contributed to a report by the
FJC Children in Families Committee on the approach to be
adopted by the court when asked to make a contact order
by consent, where domestic violence had been an issue. As
part of the work, Cafcass undertook a “snapshot survey” of
practitioners. The findings will help inform future practice.
These include:
• Confidence and Confidentiality: Promoting transparency
and openness in family courts (DCA consultation)
• Separate representation of children (DCA consultation)
• Care Matters Green paper (DfES consultation)
• Joint policy review: children and young people (DfES/HM
Treasury consultation).
Consultations We have systematically responded to all
government consultations in areas related to our work.
case study
Families Need Fathers and Cafcass in Liverpool
“About three years ago we invited Colin Derby, a Service Manager in Liverpool, to attend one of our meetings.
Afterwards we established a protocol that if one of our members was upset by something Cafcass had done, they
would come to me. Now that I have a greater understanding of Cafcass, I can often deal with the grievance myself,
or I talk to Colin about the issues involved and Cafcass’ policy. We’ve built up a platform of trust between us now.
I think Colin sees us as a group that acts responsibly and there’s definitely a better feeling about Cafcass among
our members.”
Emlyn Jones, Chair, Wirral Families Need Fathers
“In the past, we only had contact with Families Need Fathers through complaints, but that’s not the case any
more. We also talk about how we can work together. I go to their meetings once or twice a year and keep the
communication channels open; I talked to them about the Liverpool dispute resolution scheme before it started, for
example. I’ve also referred some parents to the group.”
Colin Derby, Service Manager, Cafcass Liverpool team
case study
Multi-agency working
In this adoption case, three siblings were living with their grandmother on long-term residence orders and a
fourth sister was being placed for adoption. The siblings were very keen to maintain contact and the Guardian had
argued for sibling contact to be maintained, even after the adoption placement had been made. The local authority
was initially strongly against this, but the Guardian persuaded the local authority manager to join him on a home
visit. As a result, the local authority agreed to twice-yearly contact between the girls and this was endorsed by
the courts.
“When I thought I wouldn’t be able to see her (my sister) again I felt really annoyed and upset. What I said to the
Guardian was that I wanted to see her twice a year instead of two letters. He told them everything I said and he said
it would be ok to see her twice a year.”
James, 12
”When we’re working together with other agencies, although we have to be able to have different perspectives and
different points of view, it’s important to look at how we might achieve good results for children.”
Children’s Guardian
Section 1: Management Commentary | 21

Transforming the organisation
Objective 1
Becoming a more strategic organisation in order to
represent children and their interests
We are now confident that we have put in place the building
blocks for a strong future. A number of key strategies,
frameworks and policies, which have been agreed through
consultation with staff, now support the delivery of our
services and our focus on children’s interests. We are
developing a stronger culture of self-assessment so
that we can continually improve our services rather than
relying on inspection and audit alone.
Organising for Quality We are continuing to empower
local service delivery through our change programme
Organising for Quality, which builds on proposals outlined
in the 2005–06 Cafcass consultation Every Day Matters.
The programme includes freeing up our Service Managers
to offer more practice support to frontline practitioners,
by shifting some of their administrative work to Office
Managers. It also sets out to create three corporate
support services covering the North of England, Central
England and the South of England respectively, which
will create a more efficient and effective service. We will
implement this in 2007–08.
Quality assurance In 2006–07 we implemented our
Quality Assurance Framework, following a thorough
consultation. This is a systematic approach to identifying
and responding to the needs of service users by providing
an appropriate service consistently and to agreed
standards. Given the independent nature of our work,
our ability to demonstrate quality is vital. However, it is
important that our quality assurance is flexible, supports
service delivery and allows for an approach based on
continuous improvement of services. As well as investing
in a baseline audit of frontline practice we have updated
our Quality Assurance Framework to reflect experiences
of using it and to focus on new areas of work such as
dispute resolution.
Accountability Over the past year we have taken a
proactive approach towards corporate governance by
working towards promoting a culture of openness and
accountability. Corporate decisions and performance
reports are placed on our intranet and we have a robust
publication scheme on our website, as required under
the Freedom of Information Act. A total of eight Board
meetings, one extraordinary meeting, one Board away day
and an open meeting were held during the year.
We have completed the implementation of our electronic
Case Management System (CMS) in all of our regions and
we are now able to collect more robust data. This supports
our desire to be more transparent and accountable and we
continue to publish performance reports internally and to
our external partners and stakeholders.
Child focus Our National Standard 5 is children’s active
involvement and we have made considerable progress
in strengthening the voice of children in our work.
We have clearly set out our commitment to children’s
rights through the leadership of our Children’s Rights
Director, a national team of Children’s Rights Champions
supported by Participation Workers and our Children’s
Rights Strategy. There is a clear work plan, which is being
reviewed and monitored by children and young people. The
Children’s Rights team has actively ensured that all our
policies and practice models are child-centred.
We have adopted clear principles and procedures for the
active participation of children and young people, as set
out by Participation Works 5 . In addition there are national
good practice guidelines, agreed in collaboration with
children, on how they should be involved.
Young People’s Board In August 2006, we put in place a
Young People’s Board to help inform the direction of our
work. Ten young people were initially recruited based
on their experience of parental separation and family
breakdown, including those who had experience of local
authority care. These young people have influenced
our approaches to service provision and helped us to
understand the impact we have on their lives.
Other work with young people Young people have
delivered training on the engagement of children in
practice and contributed to a training programme on
the new Cafcass National Standards. All our major
conferences promote their views and feelings and we are
continuing to involve young people in the recruitment of
staff.
My Needs, Wishes and Feelings Our work with young
people included consideration of how their voices could
be promoted in court proceedings. With their support we
developed the My Needs, Wishes and Feelings resource
pack. My Needs, Wishes and Feelings, used alongside
other tools, can help a young person share their feelings
directly with the court, if they wish to do so.
My Needs, Wishes and Feelings has been welcomed by
many of our partners and several judges. As a result,
the Children’s Rights team, with the support of external
partners and young people, has developed the children’s
impact statement. This aims to support and enable young
people to share their story when they have been exposed to
any incidence of direct or indirect abuse.
5 Participation Works is an online gateway to the world of children and young people’s participation
22 | Cafcass Annual Report and Accounts 2006–07

“This excellent practice guidance
helps us to achieve the goal of placing
the children at the forefront of the
decisions that affect their lives. I
welcome it wholeheartedly.”
HH Judge Hunt, Designated Family Judge, West
Yorkshire – endorsement of My Needs, Wishes and
Feelings
Viewpoint In 2006 we introduced Viewpoint, an electronic
interactive feedback system devised for children. Young
Voice evaluated the first two hundred responses on our
behalf. This research gave us further direction on ways of
improving our engagement with children going through
family proceedings.
Child-focused work with other agencies Our partnership
with the Commission for Social Care Inspection (CSCI) has
been very positive and together we launched “Children’s
Rights in Practice”, which sets out five key standards.
We have created joint protocols with Ofsted and the
Immigration and Nationality Directorate, and the Young
Muslim Women Group in Bradford has helped us to
develop “Golden Standards of Practice”. See page 20 for
more information on our partnerships and alliances.
Resources from the My Needs, Wishes and Feelings pack
case study
The Cafcass Young People’s Board’s contribution to the transparency debate
“Kids at school aren’t stupid, and if they know someone’s going through something and something comes out
in the papers about someone going to court, then there will be rumours spreading that that was that person.“
Jasmin
“With the press around judges will be more careful because they will have to be accountable for their
decisions one day.”
Khadijah
“I think it should be up to the individual because it’s their life and they can decide what they can do with it.”
Sarah
“An advantage of the press being able to go into the courtroom is that the public gets knowledge of what’s going
on inside of the courtroom.”
Taleefa
Section 1: Management Commentary | 23

Objective 2
Strengthening leadership and management at all levels
A stable leadership both at Board and corporate
management levels continues to support the changes
and progress we are making. We have set out our future
vision and direction in our Strategic Business Plan
2007–10. This will be cascaded to local teams and, through
team development plans and individual appraisals, will
demonstrate a clear link (“the golden thread”) from the
corporate objectives and priorities to the jobs that
people do.
Strengthening first line management Service
Managers are our first line managers and, as we are a
highly devolved organisation, they have both strategic
and operational responsibilities. We have worked
with Birmingham University to develop a bespoke
comprehensive management development programme
over three years for our first line managers. The
programme, based on the Skills for Care Leadership
in Management Strategy, will consist of an accredited
management qualification within the Post Qualifying (PQ)
framework approved by the General Social Care Council.
This will be rolled out with a first intake during 2007–08,
and will equip managers to play a full role in promoting
and managing culture change, motivating staff and
providing entrepreneurial, supportive leadership.
We have worked with Tony Morrison to develop a model
of reflective supervision and this will be cascaded to all
our managers. Tony is a trainer and consultant whose
manual Staff Supervision in Social Care has become a
key reference in this field. Initial feedback has been very
positive, with managers welcoming a clear model in which
the supervisor is engaged in a collaborative process with
the practitioner.
“I have every confidence that the staff
will benefit from this learning.”
“Thank you for the sensitivity with
which you delivered the material.”
“Very impressed with both content
and trainers.”
Comments from evaluations of supervision training
Conference for Service Managers Underlining our
commitment to good first line management, we held a
conference for Service Managers in March 2007, entitled
“Practice Matters”. The conference considered several key
proposals that will help to support and improve the quality
of our practice. There was also a presentation from our
Young People’s Board, which highlighted the importance of
active participation of young people in our work, and Tony
Morrison made a thought-provoking presentation on the
role of good supervision in social care.
Working through portfolios We have begun to break down
traditional barriers of regional boundaries and are working
flexibly to take collective responsibility for the work we
deliver. This model uses individual strengths and expertise
to deliver our services to a high standard and also allows
us to more easily define and fill our skills gaps.
The members of our national senior management team
(the Chief Executive and three Corporate Directors)
each hold a flexible portfolio of roles based on individual
strengths. Our Regional Directors also take both
operational responsibility for geographical areas and
corporate responsibility for leading on specific areas of
work. For example, Sheena Adam, Regional Director in
the North West, also leads on Knowledge, Learning and
Development nationally. Another example is the portfolios
on particular matters such as recruitment held by
individual HR Advisers.
Portfolio working encourages talent and leadership at all
levels of the organisation. In some cases, previous work
experience and expertise has been deployed to develop
much needed work in Cafcass. For example, the work of
Steve Kerr and Jane Higham, business support staff in the
East Midlands, on our procurement policy and guidance
has been exceptional.
Innovative multimedia tools The Cafcass wiki was
established as a way of capturing frontline expertise
in the design of policies and practice models. The wiki
is an extranet and was established first as a pilot and
then as a tool for all staff to collaborate on practice
and organisational questions. The first topics covered
included the welfare checklist, how to encourage new
practitioners to join Cafcass and the design of case
planning documentation. The Cafcass wiki uses the same
software engine as the online collaborative encyclopaedia
Wikipedia. Once staff members have collaborated on a
topic, all comments are sent to an independent expert to
review and benchmark against good practice, legislation
and research.
24 | Cafcass Annual Report and Accounts 2006–07

This year we also produced three DVDs for staff and
introduced an Online Policy Centre to support the roll-out
of new policies. The Online Policy Centre will provide staff
with electronic notifications of new policies or updates,
making policy compliance much more achievable.
“I feel the Online Policy Centre is a
terrific idea. To know when policies
are issued and then to make sure time
is taken to read and absorb them is
essential… policies are important and
part of our culture in our line of work.”
Cafcass staff member
The Cafcass wiki
case study
Succession planning in West Midlands
In the West Midlands, as in other regions, recruiting Service Managers has proved difficult. The number of
applicants has been low, with a high drop-out rate after short-listing. A broader and longer-term approach, with a
focus on developing our own staff, is now being progressed.
Many FCAs had expressed interest in moving into management, but felt that there was no path to allow them to
develop the necessary skills and experience to be able to compete with existing managers from other agencies.
In order to address this, a number of additional responsibility posts were recently offered to FCAs, to give
them the opportunity to spend up to 50% of their time on practice supervision, allocation of work and quality
assurance. Interest in these posts was high and most teams in the West Midlands now have an FCA with additional
responsibilities to support the Service Manager. These FCAs will be encouraged to attend relevant supervision and
management training, which will support them to meet the required criteria to apply for permanent management
positions when they arise.
Section 1: Management Commentary | 25

Objective 3
Developing a workforce strategy to recruit and
retain a flexible workforce, which better reflects the
communities we serve and makes Cafcass the employer
of first choice for professionals in our sector
Our vision is to have a skilled, valued and accountable
children’s workforce drawn from all sections of the
community. We want to have the right people, in the
right place, with the right mixture of skills, attitudes and
behaviours, and a workforce that promotes participation
from service users and stakeholders. To this end we have
developed the Cafcass Workforce Strategy, supported by
an action plan.
In 2006–07, we made significant progress towards
delivering our objectives. We recruited a new Head of HR
and under his focused leadership, the Human Resources
service has begun a significant programme of change
to deliver our Workforce Strategy agenda, alongside key
partners such as our trade union colleagues, external
agencies and of course our workforce itself.
Workforce planning We have developed a workforce
planning toolkit to support each local area to set out
its workforce plan as part of its business planning
activities. This will help us to reflect the diversity of local
communities and allow for the recognition of staffing
trends over time.
Employee feedback and staff survey We conducted
our first ever staff survey in December 2006 to gather
information about staff satisfaction and views. The results
will be used to inform change where necessary, and a
vigorous staff engagement strategy will be put in place as
a key action.
Job evaluation and strategic pay review We have begun
a massive programme of job evaluation and a strategic pay
review, which will ensure that all job roles within Cafcass
are accurately defined, focused on the needs of the
organisation, regularly reviewed through appraisal, and
continue to be rewarded at or beyond the most competitive
market rates. This task will be completed during 2007–08.
Performance management We have now developed
competencies for all of our major job roles and this has
provided clarity during recruitment and staff appraisals.
Recruitment and retention All managers have been
trained to apply the recruitment code of conduct, which
embeds a focus on safeguarding. All our FCAs are
registered with the General Social Care Council, the
regulatory body for social workers, and Criminal Records
Bureau (CRB) checks have been completed for all
current frontline staff.
The average turnover for our employed FCAs is 6.5%,
which is low for a social work organisation. Many of our
leavers in 2006–07 were retiring staff, which is to be
expected with our age profile. The bank staff scheme
has proved attractive to staff retiring from full-time
employment in 2006–07 and we now have 123 on the
scheme.
We are proactive in promoting our work to future
employees in our sector. A good example of this is our
student unit in Blackburn (see page 19).
Family Support Workers We intend to roll-out the new
role of Family Support Worker (FSW) to all frontline teams.
In 2006–07 we recruited 10 FSWs and we are currently
running selection processes across regions to recruit a
further 32.
case study
Working with a diverse community in Bradford
Approximately 25% of Section 7 reports prepared by the Bradford office involve members of the Asian community.
In recognition of this, two posts are designated as Cafcass Support Worker/Interpreter (these practitioners
are also a regional resource). The office also has a full-time receptionist with Asian language skills. Strong
partnerships have been developed with a range of voluntary groups, in particular with Muslim faith advisers.
case study
Family Support Workers – freeing practitioners to focus on what they do best
“The Family Support Worker role complements that of an FCA very well. FCAs refer cases to me and we work
closely together. The cases vary, but include supervising and reporting on contact, drawing up and overseeing
contact plans and direct work with both children and parents. In addition, I hold a number of Family Assistance
Orders. In the future I’d like to undertake the relevant training to become an FCA.”
Nickie Stoker, Family Support Worker, Plymouth
26 | Cafcass Annual Report and Accounts 2006–07

Diversity Our workforce is ageing, with 54% of our
employed staff over the age of 50. We have a commitment
to make our workforce more representative of the
communities we work with and our Workforce Strategy
and actions will reflect this commitment.
Figure 6 shows a breakdown of staff ethnicity by job roles
as at 31st March 2007. Monitoring shows that 11.9% of
starters and 9.1% of leavers in 2006–07 were from black
and minority-ethnic groups.
Cafcass follows the Civil Service Code of Practice on the
Employment of Disabled People, which aims to ensure
that there is no discrimination on the grounds of disability.
A slight decrease in the numbers of staff with a disability
was recorded in 2006–07, 5.5% (113) compared with 5.8%
(120) in 2005–06.
Support for employees As part of our Employee
Assistance Programme, our employees can call a free,
confidential advice line, which offers professional support
24 hours a day all year round. During 2006–07, the advice
line was used 221 times, with 52 callers being referred
for counselling. This represents 2.5% of the employed
staff, well within the average range of 3–6% across other
organisations that use this scheme.
A number of support groups for staff, including a National
Black Managers Network, have been established and are
actively attended.
Figure 6
Cafcass black and minority-ethnic (BME) staff by job group
Job group Total BME % BME % ethnicity not
specified
Practitioners* 1381 115 8.3% 3.3%
Support staff** 510 63 12.4% 1.6%
Service Managers 131 8 6.1% 1.5%
Senior managers*** 46 4 8.7% 0.0%
Total 2068 190 9.2% 2.7%
* Includes employed FCAs, bank scheme and sessional workers
** Includes Administrators, Senior Administrators, Admin Managers, specialist staff, PAs and business support staff
*** Includes Board members, Corporate Directors, Regional Directors, Heads of Service and Business Managers
Section 1: Management Commentary | 27

Objective 4
Being more efficient and adding value in all we do
Over the past two years Cafcass has received no increase
in baseline funding, although in 2006–07 we received
significant one-off funding for capital and change
programmes. The additional non-recurring funding has
enabled us to take forward our modernisation agenda
without diverting baseline funding from frontline service
delivery. We have stayed within our allocated budget whilst
improving the service we deliver to children and families.
Effective budget management has enabled us to absorb
inflationary pressures, deliver the efficiency savings
required of us by government, redirect more resources
to frontline service delivery and manage significant
increases in demand for our services. We have done this by
identifying efficiencies and best practice, to reduce spend
and maximise positive outcomes.
Budget Task Force A Budget Task Force has operated
throughout 2006–07 to co-ordinate in-year budget control
measures, ensure that efficiencies were delivered and to
ensure that spend was aligned to service priorities. The
Budget Task Force identified and co-ordinated areas of
budget savings, scrutinising spend, sharing good practice,
issuing guidance and reviewing business cases.
Figure 7 shows how we spent our budget in 2006–07.
Capital and change programmes In May 2006 the DfES
awarded Cafcass additional one-off funding of £4.69m.
This has been used to fund a range of programmes. The
key areas of work were:
• IT
• regional change programmes in London, the South
East, and the West Midlands
• an early retirement programme
• a strategy to upgrade freehold buildings
• practice development
• redevelopment of internet and intranet communications
• procurement processes
• a staff survey.
We believe that the grant has had a significant and
beneficial impact on the delivery of service and in enabling
the organisation to move forward and set the direction
for further progress. The majority of these initiatives
would not have happened without separate funding
being available.
Our staff members have achieved increased IT literacy
as a result of the 2006–07 capital programme, which will
pave the way for increased performance and ultimately
improved outcomes for children and families. In addition
we have improved IT resources, our intranet and internet
Figure 7: How we spent our budget 2006–07
Staff costs 65% (£70m)
Other pension costs 4% (4m)
Self-employed contractors 9% (£10m)
Other operating charges 20% (£22m)
Depreciation 1% (£1m)
Partnership costs 1% (£1m)
See page 52 for exact figures
28 | Cafcass Annual Report and Accounts 2006–07

upgrade will be completed by the end of August 2007, and
700 laptops will be issued to practitioners in the financial
year 2007–08.
The 2007–08 budget settlement from DfES represents a
£5.9m increase on our 2006–07 baseline budget. This is
a percentage increase of 5.8%, and is recognition of the
important work we do and the pressures on us.
Business support Effective delivery of essential services
demands excellent business support. To support the
service delivery and practice developments identified in
Organising for Quality, we are changing some business
support roles and responsibilities. A comprehensive
business support review has been conducted to identify the
administrative needs of a complex national organisation.
This aims to provide consistent and efficient business
support across Cafcass, allowing systems and processes
to be shared where appropriate.
Case Management System (CMS) The CMS was piloted
by the South West region during the 2005–06 financial
year and subsequently rolled out to all regions during
2006–07. The new national Case Management System links
information across all teams and regions, keeps all the
information in one place and enables us to track a child’s
history. CMS delivers greater consistency and efficiency
in terms of performance monitoring and management,
managing workloads and allocating cases.
“CMS is user-friendly, easy to navigate
and has improved the way we use our
resources. It’s more efficient than our
previous systems as all information is
now on one database. CMS also allows
us to look at information such as
diversity monitoring, dispute resolution
and self-employed contractors’
time recording. This brings all tasks
together to provide more sophisticated
reports and effective case monitoring.”
Loretta Amor, Admin Manager, Wells St office in London
Section 1: Management Commentary | 29

How We Met our Performance Indicators
This section charts the progress we have made against our eight key performance indicators
(KPIs), as agreed by the Secretary of State for Education and Skills.
Key performance indicators
KPI 1 – By March 2007, 70% of
allocations during the month for
Section 31 (care and supervision)
cases should be within two days from
receipt of request. (Figure 8)
55.4%
Not achieved but improved
While the target of 70% was not
achieved, performance has improved
nationally from 49.9% in 2005–06.
Seven regions achieved higher than
the national average with three
regions meeting the KPI (East
Midlands, South West and Southern)
and two on target to meet the KPI
(Eastern and North West).
In September 2004, a Judicial Protocol was introduced to reduce delays in public law care proceedings and to complete
care cases within 40 weeks. Cafcass’ contribution to the achievement of this judicial target is to aim to allocate 70%
of our cases within two working days from receipt of request. This is an ambitious target and one we hope to achieve
through radically changing the way we respond to referrals and through early intervention as set out in our recent
consultation papers.
Figure 8: Public law – Section 31s allocated within two days (KPI 1)
65%
60%
55%
50%
45%
40%
35%
apr may jun jul aug sep oct nov dec jan feb mar
2004–05 2005–06 2006–07
30 | Cafcass Annual Report and Accounts 2006–07

KPI 2 – At least 98% of all public law
allocations each month for all case
types should be within 28 days of
receipt of request. (Figure 9)
93.7%
Partially achieved and improved
Performance has improved nationally
from 91% in 2005–06. Eight regions
achieved higher than the national
average with three regions meeting
the KPI (East Midlands, South West
and Southern) and five on target
to meet the KPI (Eastern, Greater
London, North West, South East and
Yorkshire & Humberside).
As with KPI 1, this target helps us to monitor that our public law work is being promptly allocated and that early
intervention work is carried out to meet the requirements of the Judicial Protocol. This also helps us to ensure that
other public law work such as adoption cases and supervision orders is not delayed.
Figure 9: Public law – cases allocated within 28 days (KPI 2)
100%
95%
90%
85%
80%
apr may jun jul aug sep oct nov dec jan feb mar
2004–05 2005–06 2006–07
KPI 3 – No more than 3% of the
public law workload should remain
unallocated at month end. (Figure 10)
2.9%
Achieved
Nationally we have maintained the
public backlog within the target
of 3%. The comparative figure in
2005–06 was 2.7%. Six regions
met the target of 3% or lower (East
Midlands, North West, South East,
South West, Southern and Yorkshire
& Humberside), and three regions
were on target with lower than
3.5% (Eastern, Greater London
and West Midlands).
To avoid delays in public law proceedings of all types, we have set a standard that no more than 3% of our workload
should remain unallocated at month end as a snapshot. We have consistently achieved this standard despite increases
in care cases, which take two-and-a-half to three times more time than other public law work such as adoption and
supervision orders.
Section 1: Management Commentary | 31

Figure 10: Public law – workload unallocated (KPI 3)
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
apr may jun jul aug sep oct nov dec jan feb mar
2004–05 2005–06 2006–07
KPI 4 –The percentage of dispute
resolutions (including Extended
Dispute Resolutions) resulting in full
or partial agreement. (Figure 11)
Norm = 55% to 65%
59.4%
Achieved
Nationally this new KPI met the set
norm this year. Nine regions achieved
greater than 55% with one region just
under with 54.6%. Eastern region’s
agreement percentage was the
highest with 73% agreements.
Our dispute resolution work aims to help families resolve conflict at an early stage and come to an agreement about
arrangements for their children, which can then be agreed in court.
Figure 11: Private law – dispute resolution agreements (KPI 4)
70%
65%
60%
55%
50%
apr may jun jul aug sep oct nov dec jan feb mar
2006–07
32 | Cafcass Annual Report and Accounts 2006–07

KPI 5 –The percentage of Section
8s referred for dispute resolution,
which are then referred for a Section
7 report.
Norm = 35% to 45%
20.6%
Achieved
All regions easily met the norm in this
sample of dispute resolution work,
with all regions reporting below 35%.
The achievement of this KPI is based on a sample of February and March 2007 data.
KPI 6 –100% diversity monitoring
forms returned for all service users.
61.2%
Not achieved but improved
While the target of 100% was not
achieved this year, all regions have
shown steady improvement from a
baseline of 47% since the introduction
of this new KPI. Five regions achieved
higher than the national average
(East Midlands, Eastern, North
East, Southern and Yorkshire &
Humberside).
This KPI is aimed at understanding who our service users are and to use that information to better plan our service so
it is relevant and better meets their needs.
KPI 7 –100% appraisals completed
for all staff within a 12-month period.
60.3%
Not achieved but improved
While the target of 100% was not
achieved this year, all regions have
shown steady improvement since
the introduction of this new KPI.
Three regions and National Office all
completed higher than the national
average (North East, Yorkshire
& Humberside and North West,
including Legal Services within
National Office (100%)).
Our staff survey sample reported 75% of staff had received an appraisal, indicating that we are not collecting
information accurately. We will be monitoring this closely next year.
KPI 8 – Sickness absence rate of no
more than 4%.
4.3%
Partially achieved
The comparative figure in 2005–06
was 3.5%. Five regions and National
Office met the target of lower than
4% for sickness absence (East
Midlands, Eastern, North West,
South West and Southern), and two
regions were on target with lower
than 4.7% sickness absence (South
East and West Midlands).
This KPI is a measure of our corporate health. We have made considerable improvement in reducing sickness absence
through a combination of proactive health and safety initiatives. Our achievement compares favourably with the
Chartered Institute of Personnel Development Annual Absence Survey 2006, which reported 4.8% sickness absence for
local government and 4.6% for central government.
Section 1: Management Commentary | 33

New key performance indicators for 2007–08
In line with our changing focus, particularly in private law, we have agreed a new set of key
performance indicators with the Secretary of State for Education and Skills.
Key performance indicator Definition Target
KPI 1 Public law
KPI 2 Public law
KPI 3 Private law
KPI 4 Corporate
KPI 5 Corporate
KPI 6 Corporate
Public law Section 31 allocations
during the month should be within
two working days from receipt of
request (receipt day counted as
day 0). Target is 5% over 2006–07
baseline (55%).
No more than 3% of the public
law workload should remain
unallocated at month end.
Percentage of private law early
interventions resulting in full or
partial agreement.
Service users giving feedback
express overall satisfaction with
the service they have received
from Cafcass.
a) Feedback form – parents
b) Feedback form – children
95% of all closed cases, which are
allocated within the year, should
have diversity monitoring forms
recorded for all service users.
95% of appraisals should be
completed for all eligible staff
within a rolling 12-month period.
+ 60%
59% to 50% :
- 49%
- 3.0%
3.1% to 3.9% :
+ 4.0%
+ 60%
59% to 50% :
- 49%
Identify baseline in 07–08
95%
94% to 85% :
- 84%
95%
94% to 85% :
- 84%
Meets target (green)
On target to meet (amber)
Does not meet target (red)
34 | Cafcass Annual Report and Accounts 2006–07

Section 1: Management Commentary | 35

Comments, compliments
and complaints
At the beginning of 2006–07 we reviewed the key learning
points from complaints and other feedback from service
users, received in the preceding year. During 2006–07
we have been able to improve on many of the key issues
that service users had been telling us they were most
concerned about and this has informed significant
improvements to core areas of our service delivery.
Specific examples are:
• the introduction of a new case recording policy, setting
out stronger requirements in all our practice regarding
the documentary recording of our work
• the launch of a new policy, guidance and toolkit
for practitioners working with issues of
domestic violence
• new quality assurance systems, which include ensuring
that the reports submitted by Cafcass to the courts have
been checked through a system of quality control
• new public information leaflets updating the
descriptions and explanations of the work that we do,
in order to assist service users to better understand
what they can reasonably expect from us in delivering
our services.
In the year 2006–07, we received 186 comments, 210
compliments and 640 new complaints. In addition, there
were 65 ongoing complaints at the end of 2005–06.
Of the 640 complaints received, 615 related to private law
work (this represents 2.6% of private law report requests)
and 25 related to public law work (this represents 0.2%
of public law case requests). Given the highly emotional
nature of divorce and separation, it is not surprising that
Figure 12: Complaint outcomes of all registered complaints finalised
the majority of our complaints originate from private
law cases.
During this period Cafcass has continued to extend the
availability of its dispute resolution services, and this
work is reflected within the above private law figures.
Complaints made about our dispute resolution work
accounted for only nine of the 615 private law complaints.
More complaints were received from mothers (41%) than
fathers (38%), while grandparents, solicitors and others
made 19% of complaints. The number of complaints
we received from children continues to be small (2%),
although we have taken active steps to ensuring that
information and advice for children is more accessible as
we recognise that the small number may not necessarily
equate to satisfaction with the outcomes of our work.
Of the complaints dealt with by Cafcass during 2006–07,
64% of those complaining were white, 10% were from
black and minority-ethnic communities and 26% were not
known. Of the 26% with unknown ethnicity, in 4% the client
was unavailable, 2% refused to provide the information and
in 20% the form was not returned.
Outcomes of complaints concluded
in 2006–07
Of the complaints concluded by Cafcass 354 (65%)
related to disputed evidential issues before the courts,
and in these cases service users were referred to
the court process as the correct place for these to be
addressed, rather than through the Cafcass complaints
process. The remaining 194 (35%) complaints concluded
are detailed below.
Figure 12 reflects the outcomes of the 194 remaining
complaints that were registered and shows the
comparative trends over a period of three years.
80%
70%
60%
57%
70%
60%
50%
40%
30%
20%
10%
0%
38%
33%
21%
9% 7%
5%
Partially upheld Not upheld Resolved/withdrawn Withdrawn – new category
2004–05 2005–06 2006–07
36 | Cafcass Annual Report and Accounts 2006–07

The Parliamentary and Health Service Ombudsman
(PHSO) were asked by MPs to examine 28 enquiries by
members of the public, two of which related to events
or incidents which occurred in 2006–07, about Cafcass
administration. Of these, the PHSO found one to be
partially justified as a complaint of maladministration
and requiring corrective action. The remaining 26 related
to events that took place in previous years, and two of
these were partly upheld. The remainder were found to be
unjustified/not upheld.
Comments and compliments from service users
“Your professionalism and focus on the
child has shone though and is something
I really admire.”
“Thank you for your help in bringing me
and my son together.”
“The judge asked to ensure that Cafcass
is aware of just how valuable a resource
the court regards the appointment
of a Guardian in difficult private law
proceedings, and he indicated that this
is precisely the sort of case which would
not have been easily resolved without the
Guardian’s input.”
“I am writing… to thank you for devoting
so much time and effort to try and
resolve the dispute between (the
children’s father) and myself. Above all, I
owe you a debt of gratitude for spending
a considerable amount of time listening
to (the children) and for taking their fears
and concerns to heart. You’ve been a
formidable advocate for them.”
“Thank you for helping me and my
sister. I am going to be a lot happier
when this is all over, because of your
recommendations and because you
listened to us. I am very glad that you
were the Cafcass officer appointed to us,
as it was easy to talk to you and express
our opinions.”
“I would like to take the opportunity
to thank you for your assistance and
professionalism… You have certainly
developed a rapport with and made an
impression on our children… I thank you
for your assistance in helping to provide
our children with the mechanism for
achieving meaning and constructive
contact with both parents.”
“Thank you for the thoroughness,
impartiality, and intelligent manner
in which the case was handled from
beginning to end. We wouldn’t have
wished for a better person than
yourself to have reached such a positive
outcome. Thank you for your kindness
and understanding, and of course your
professionalism.”
“I would like to take this opportunity to
thank you for all your help, throughout
the course of the legal proceedings… The
reports you filed for the judicial system
in order to assess our case were very
concise and professional... I didn’t feel
overpowered by your questioning or your
honest opinions, in fact I felt confident
that someone was listening and hearing
the needs of my son.”
Section 1: Management Commentary | 37

Section 2: Organisational Structure
Section 2:
Organisational
Structure
Cafcass delivered services to families and the courts from over 100 sites throughout our ten
English regions during 2006–07.
Currently there are 10 regions: Eastern, East Midlands,
Greater London, North East, North West, South East,
Southern, South West, West Midlands and Yorkshire &
Humberside.
Our management structure is likely to change during
2007–08 as a result of our need to focus more resources
on frontline service provision. More work needs to be done
on the structure before the complete set of roles between
local teams and senior management can be decided. In
the interim period, all senior managers will have agreed
portfolios, building on what they have been doing in
2006. As far as possible, we will place an emphasis on
business continuity, to reduce the level of change and
uncertainty. We will be continuing with our Head of Service
programme, to create specific posts where these are
needed. We will be going ahead with recruitment to new
permanent Heads of Service posts in London, Birmingham
and a small number of additional sub-regions.
Frontline service delivery across the regionally managed
network of offices is supported by a small National
Office, which provides corporate strategy, service
leadership, performance management and resource
management. Operational aspects of strategic functions
such as procurement, human resources, and training and
development were successfully devolved to the regions
during the course of the 2006–07 year.
North
West
North
East
Wast
Midlands
Yorkshire &
Humberside
East
Midlands
Eastern
Given the scale of change, a small national change team
will be established for one year, to ensure developments
are managed coherently.
South
West
South
Greater
London
South
East
38 | Cafcass Annual Report and Accounts 2006–07

Members of the Board at an open Board meeting
The Cafcass Board
Baroness Pitkeathley OBE, Chair
Baroness Howarth of Breckland
OBE, Deputy-Chair
Gillian Baranski (Co-opted to the Board)
Jennifer Bernard
Margo Boye-Anawoma
Erica De’Ath OBE
Mark Eldridge
Harry Marsh MBE
Richard Sax
Nicholas Stuart CB (Co-opted to the Board)
Judith Timms OBE
Professor Jane Tunstill
CAFCASS EXECUTIVE Team
Anthony Douglas, Chief Executive
Jane Booth, Corporate Director
Sherry Malik, Corporate Director
Lamorna Wooderson, Corporate Director
Cafcass Executive Team
“The Young People’s Board is made
up of lots of different young people, all
who have different experiences, and I
think that their perspectives will make
for a better service for young people.”
Benjamin, 15, a member of our Young People’s Board
Members of the Young People’s Board at a
residential weekend
Audit Committee
Nicholas Stuart CB, Chair
Jennifer Bernard
Margo Boye-Anawoma (to May 2006)
Mark Eldridge
Baroness Howarth of Breckland OBE
Harry Marsh MBE (from May 2006)
Judith Timms OBE
The Cafcass Young People’s Board
Jasmin Bailey
Sarah-Louise Chapman
Dean Coe
Ronald Grant
Benjamin Hitch
Rebecca Musgrove
Khadijah Nsubuga
Libby Rees
Rachel Shakesby
Taleefa Watson
Sarah Woodhead
Section 2: Organisational Structure | 39

Section 3: Statement of Accounting Officer’s Responsibilities
Section 3:
Statement of
Accounting Officer’s
Responsibilities
Under the Criminal Justice and Court Services Act 2000,
the Secretary of State for Education and Skills has directed
the Accounting Officer to prepare for each financial year
a statement of accounts in the form and on the basis set
out in the Accounts Direction. The accounts are prepared
on an accruals basis and must give a true and fair view
of the state of affairs of Cafcass and of its income and
expenditure, total recognised gains and losses and cash
flows for the financial year.
In preparing the accounts, the Accounting Officer
is required to comply with the requirements of the
Government Financial Reporting Manual and in
particular to:
• observe the Accounts Direction issued by the Secretary
of State for Education and Skills, including the relevant
accounting and disclosure requirements, and apply
suitable accounting policies on a consistent basis;
• make judgments and estimates on a reasonable basis;
• state whether applicable accounting standards as set
out in the Government Financial Reporting Manual have
been followed, and disclose and explain any material
departures in the financial statements; and
• prepare the financial statements on a going
concern basis.
The Principal Accounting Officer of the Department for
Education and Skills has designated the Chief Executive
as Accounting Officer of Cafcass. The responsibilities
of an Accounting Officer, including responsibility for the
propriety and regularity of the public finances for which
the Accounting Officer is answerable, for keeping proper
records and for safeguarding Cafcass’ assets, are set
out in the Accounting Officers’ Memorandum issued
by Her Majesty’s Treasury and published in
Government Accounting.
40 | Cafcass Annual Report and Accounts 2006–07

Section 4: Statement on Internal Control
Section 4:
Statement on
Internal Control
Scope and responsibility
As Accounting Officer, I have responsibility for maintaining
a sound system of internal control that supports the
achievement of Cafcass’ policies, aims and objectives,
whilst safeguarding the public funds and departmental
assets for which I am personally responsible, in
accordance with the responsibilities assigned to me in
Government Accounting. Cafcass’ aims and objectives
are set by the Board in accordance with relevant
legislation and the Framework Document agreed with
the Department for Education and Skills (DfES). Cafcass
is an executive non-departmental public body (NDPB).
It is headed by a non-executive Board appointed by the
Secretary of State for Education and Skills, as set out in
the Act, varied by the Transfer of Functions Order, January
2004. The Chief Executive and three Corporate Directors
have executive responsibility for the management of
Cafcass on a day-to-day basis and support the Board
and Cafcass as a whole. All main Board meetings, which
occur every six weeks, receive reports on finance and
performance. On a quarterly basis the Board receives
reports on governance and risk issues, and reports
from the Audit Committee. The Audit Committee, whose
membership and Chairman are appointed from the nonexecutive
Board members, meets a minimum of four
times each year.
The DfES sponsors Cafcass and appropriate arrangements
are in place to ensure that the DfES is fully informed of
the business of Cafcass and that we, in turn, are informed
of the DfES’s requirements for Cafcass. This includes
six-weekly sponsorship meetings with the CEO, Corporate
Directors and DfES officials and regular catch-up
meetings between the CEO and senior DfES officials. Oneoff
meetings to solve specific problems are also convened
and followed through as required. The Chair and Chief
Executive meet with the sponsoring Minister on a
regular basis, and bring matters of significance to
Ministerial attention.
The purpose of the system of internal control
The system of internal control is designed to manage
risk to a reasonable level rather than to eliminate all
risk of failure to achieve policies, aims and objectives; it
can therefore only provide reasonable and not absolute
assurance of effectiveness. The system of internal control
is based on an ongoing process designed to identify
and prioritise the risks to the achievement of Cafcass’
policies, aims and objectives, to evaluate the likelihood of
those risks being realised and the impact should they be
realised, and to manage them efficiently, effectively and
economically. The system of internal control has been
in place in Cafcass for the year ended 31st March 2007
Section 4: Statement on Internal Control | 41

and up to the date of approval of the Annual Report and
Accounts, and accords with Treasury guidance.
During the year Cafcass has been able to put in place
additional procedures that strengthen our systems
of internal control and embed our risk management
processes.
Capacity to handle risk
As Accounting Officer, I am the primary owner of the
Corporate Risk Register, supported by three Corporate
Directors, with the Corporate Director of Strategy and
Performance leading on risk. The Chairs of the Board and
of the Audit Committee also play key roles in the overall
leadership of risk management in Cafcass.
During 2006–07 all senior managers were formally briefed
on risk management with cascade training taking place
in local teams. We also developed a shared risk register
with DfES, which is monitored and updated at sponsorship
meetings.
From the beginning of 2006–07 budget delegation has
been in place for frontline teams in all regions. This builds
on our experience of local delegation and constitutes
a significant change in practice in some areas. This is
supported by local financial training and regular quarterly
budget reviews.
The risk and control framework
The corporate risk register identifies the key strategic
risks which may stand in the way of Cafcass achieving its
objectives as outlined in the 2005–07 Business Plan. The
regional risk registers inform the corporate risk register.
Cafcass considers risks under five broad areas, and
sets risk tolerance on a four-point scale for each area
(ie nil-low-medium-high). The risk register is a working
document. In year, it has been enhanced and developed to
ensure it accurately captures real-time changes in risks.
Cafcass seeks to maximise its reputation in all that we
do and minimise those risks, which could lead to an
adverse reputation.
Both the corporate and regional registers are monitored
and reviewed quarterly by the Corporate Decision Group
(CDG) Performance Board and at quarterly performance
meetings. In preparation regions also complete selfassessments,
assessing their performance against a
range of financial, service delivery and quality indicators.
The Board agreed a new three-year Strategic Business
Plan and associated risk register for the period 2007–10 in
April 2007.
Review of effectiveness
As Accounting Officer, I have responsibility for reviewing
the effectiveness of the system of internal control. My
review of the effectiveness of the system of internal
control is informed by the work of the internal auditors
and the executive managers within the organisation who
have responsibility for the development and maintenance
of the internal control framework, and comments made
by the external auditors in their management letter and
other reports. I have been advised on the implications of
the results of my review of the effectiveness of the system
of internal control by the Board, the Audit Committee
and a plan to address weaknesses to ensure continuous
improvement of the system is in place.
HM Inspectorate of Court Administration (HMICA)
During the reporting period, HMICA undertook three
inspections; Frontline Practice in Private Law (August
2006), Promoting Race Equality (July 2006) and Assisting
Families by Court Order (Family Assistance Orders)
(February 2007). In addition, the Joint Inspection of
Cafcass and HMCS (Adoption – the new law) reported in
December 2006.
Three Post Inspection Reviews (PIRs) completed in
2006–07, Eastern Region, First Line Management, and
Domestic violence, safety and family proceedings. Out of
21 recommendations made in these three reports, seven
(33 %) were fully implemented and 14 (67%) were partially
implemented. The comparative figures for the previous
year as set out in HMICA’s Annual Report 2005–06 were of
the 23 recommendations made seven (30%) were assessed
as satisfactory at PIR and 16 (70%) assessed as generally
satisfactory at PIR but more work required.
In summarising the year HMICA reported, “The Board,
Chief Executive and Corporate Directorate provide
authoritative leadership. The organisation is benefiting
from a high degree of stability across its most senior
officer and Board member positions.”
Internal control bulletin
This has been the third year in which a system of internal
control has been fully in place across Cafcass. Throughout
2006–07 I have required that every location/department is
the subject of a process leading to an internal certificate
that covers 16 control areas. Every cost centre submits
returns that culminate in a certified annual return
completed by every Regional Director/National Office
department. The IFC training and procedures which have
operated in the year alongside targeted training have
resulted in significant progress in year. The two highest
reported weaknesses relate to local inventory records and
fraud prevention awareness. None of the issues raised
gave rise to significant internal control concerns.
Audit Committee
A duly constituted Audit Committee has operated
throughout the year and its terms of reference reflect best
practice. It consists of six non-executive members of the
Board. The Audit Committee met six times in 2006–07. The
attendance of the NAO at all these meetings provides a
valuable opportunity to introduce their experience, views
42 | Cafcass Annual Report and Accounts 2006–07

and advice on best practice. The committee has reviewed
its procedures against The Audit Committee Handbook
(HM Treasury March 2007) and concluded that it complies
with that guidance in all significant aspects of its work.
Internal audit
An independent firm of accountants, Bentley Jennison, was
employed throughout 2006–07 to provide an internal audit
service. The Audit Committee agreed the internal audit
strategy and plans for 2006–07 at the Audit Committee in
May 2006.
During 2006–07 we have used a log to track progress
of all internal and external audit recommendations and
to manage outstanding actions. Progress is reported
regularly to the Audit Committee. Formal sign-off
is obtained from the responsible officers along with
supporting documentation. During the year 92% of the
recommendations with a due date prior to 31st March 2007
have been completed.
I receive an annual report on the findings of internal audit,
which includes their professional opinion as to the level of
assurance that is applicable to Cafcass. For 2006–07 the
audit opinion was that Cafcass had adequate and effective
risk management, control and governance processes
in place to manage achievement of the organisation’s
objectives. Considerable progress has been made in the
year with the number of reports receiving “substantial”
assurance rising to 64% in 2006–07 (47% 2005–06).
As referred to by the internal auditors in the year two areas
received limited assurance, London Region Financial and
Case Management System (CMS). A follow up of London
was undertaken in February 2007, which concluded that
considerable progress had been made with 90% of the due
recommendation implemented and the remaining 10% in
progress. The CMS report is still at draft stage; further
work on this area will be required in 2006–07 to address
the weaknesses identified and develop an appropriate
action plan.
Budget Task Force
A Budget Task Force has operated throughout 2006–07,
consisting of myself, the Head of Strategic Finance, the
Chair of the Audit Committee and two Corporate Directors.
The Budget Task Force identified and co-ordinated areas of
budget savings and reviewed business cases.
Purchase orders
Cafcass introduced an electronic purchase ordering
(PO) system in April 2003. Whilst a PO supported all
expenditure, the majority of POs were raised after the
invoice was received. Considerable improvements in
compliance were achieved in 2005–06 with the percentage
of invoices having a PO raised in advance increasing from
26% to 60%. Further progress has been made in 2006–07,
we have continued to see month-on-month improvements
with compliance of 70% overall for the year, reaching a
peak of 84% in any one given month.
Full accruals
Full monthly accruals processes have been in place
throughout 2006–07. This has resulted in substantial
improvements in monthly management information and
forecasting.
Areas of further work for 2007–08
Cafcass has engaged PricewaterhouseCoopers as our
new internal audit provider with effect from 1st April 2007.
In 2007–08 Cafcass’ priority is to continue to strengthen
the financial control and compliance culture across the
organisation, building on the significant progress made
to date. Following the roll-out of the Case Management
System during 2006–07 and taking on board the results of
the recent audit, we will be working to embed the system
and ensure that the controls and procedures in place
are adequate to provide assurance around systems and
data quality. In 2006–07 considerable progress has been
made to improve controls in the area of procurement:
the advisory internal audit report undertaken in year will
be used to develop an action plan in 2007–08 to further
strengthen this area.
Anthony Douglas
Chief Executive and Accounting Officer
3 July 2007
Section 4: Statement on Internal Control | 43

Section 5: Remuneration Report
Section 5:
Remuneration
Report
Remuneration policy
Cafcass staff members are subject to levels of
remuneration and terms and conditions of service
(including superannuation) within the general pay
structure approved by Department for Education and
Skills (DfES), the sponsoring department.
Governance
The Chief Executive and the Chair approve annual pay
reviews and performance related payments for Corporate
Directors and Head of Profession. DfES approves annual
pay reviews and performance related payments for the
Chief Executive. DfES appoints Cafcass Board members
and approves their remuneration.
Service contracts
Cafcass appointments are made in accordance with the
Cafcass Recruitment Code of Practice, which recognises
that in order to provide a world-class service to the
children and families that we serve it is vital that we
recruit and retain people who share our aims and values,
and have the skills and abilities to perform effectively
at all levels through fair and open competition. Unless
otherwise stated below, those covered by this report hold
appointments that are open-ended until they reach the
normal retiring age of 60. Early termination, other than
for misconduct, would result in the individual receiving
compensation as set out in the individual contract of
employment.
• Anthony Douglas, Chief Executive was appointed
on a three-year contract commencing on 1st
September 2004.
• The Cafcass Board members are appointed on a threeyear
contract.
Salary and pension entitlements
The remuneration for Cafcass Board members is shown
opposite and the remuneration for the Executive Team is
shown on page 46. Remuneration includes gross salary,
allowances and, for the Executive Team, employer’s
contributions to the West Yorkshire Pension Scheme.
Pension benefits are not provided for Board members.
Cafcass salary ranges will be established by considering
the factors such as external, relevant comparator pay
levels, internal relativities, affordability, recruitment and
retention risks and political sensitivity. Further information
on the Cafcass pension schemes can be found in notes
1(e), 1(l), 5 and 20 to the accounts.
Benefits in kind
None of the Cafcass Board members or the Executive
Team received benefits in kind.
44 | Cafcass Annual Report and Accounts 2006–07

Board members’ remuneration (audited information)
2006–07 2005–06
Board members Salary £000 Benefits in kind
(to nearest £100)
Salary £000
Benefits in kind
(to nearest £100)
Baroness Pitkeathley OBE 43 - 42 -
Richard Sax 10 - 9 -
Baroness Howarth of
Breckland OBE
10 - 9 -
Professor Jane Tunstill 10 - 9 -
Nicholas Stuart CB
(Co-opted to the Board) 10 - 9 -
Gillian Baranski
(Co-opted to the Board) 10 - 9 -
Jennifer Bernard 10 - 9 -
Margo Boye-Anawoma 10 - 9 -
Erica De’Ath OBE 10 - 9 -
Harry Marsh MBE 10 - 9 -
Judith Timms OBE 10 - 9 -
Mark Eldridge 10 - 0 -
Pension benefits
Columns 4 and 5 of the table on page 46 show the
members’ cash equivalent transfer value (CETV) accrued
at the end and at the beginning of the reporting period.
Column 6 reflects the increase in CETV effectively funded
by the employer. It takes account of the increase in
accrued pension due to inflation and contributions
paid by the employee, including the value of any
benefits transferred from another pension scheme
or arrangement, and uses common market valuation
factors for the start and the end of the period.
Cash equivalent transfer values
A CETV is a payment made by a pension scheme or
arrangement to secure pension benefits in another
pension scheme or arrangement when the member
leaves a scheme and chooses to transfer the benefits
accrued in their former scheme. The pension figure shown
relates to the benefits that the individual has accrued as
a consequence of their total membership of the pension
scheme, not just their service in a senior capacity to which
disclosure applies. The CETV figure, and from 2004–05
the other pension details, include the value of any pension
benefit in another scheme or arrangement which the
individual has transferred to the CSP arrangements
and for which the Civil Service (CS) Vote has received a
transfer payment commensurate to the additional pension
liabilities being assumed. They also include any additional
pension benefit accrued to the member as a result of their
purchasing of additional years of pension service in the
scheme at their own cost. CETVs are calculated within the
guidelines and framework prescribed by the Institute and
Faculty of Actuaries.
Section 5: Remuneration Report | 45

Corporate directors’ remuneration
Column 1 2 3 4 5 6
2006–07
Salary,
including
performance
pay £000
Real
increase
in pension
and
related
lump sum
at age 60
£000
Total
accrued
pension at
age 60 at
31st March
2007 and
related lump
sum £000
CETV
at 31st
March
2006
(nearest
£000)
CETV
at 31st
March
2007
(nearest
£000)
Real
increase in
CETV after
adjustment
for inflation
and changes
in market
investment
factors
(nearest
£000)
Anthony Douglas
Chief Executive
Officer
147 0–2.5 plus
5.0–7.5
lump sum
50–55 plus
150–155 lump
sum
843 910 59
Lamorna
Wooderson
Corporate
Director
102 5–7.5 plus
17.5–20.0
lump sum
35–40 plus
110–115 lump
sum
520 647 121
Sherry Malik
Corporate
Director
102 2.5–5.0
plus
10–12.5
lump sum
20–25 plus
55–60 lump
sum
209 268 54
Jane Booth
Corporate
Director
102 2.5–5.0
plus
10–12.5
lump sum
25–30 plus
75–80 lump
sum
370 457 81
Anthony Douglas
Chief Executive and Accounting Officer
3 July 2007
46 | Cafcass Annual Report and Accounts 2006–07

Section 6: Accounts 2006–07
Section 6:
Accounts 2006–07
Introduction to the Accounts 2006–07
1. Introduction
The Children and Family Court Advisory and Support
Service (Cafcass) is an executive non-departmental public
body that was established by the Criminal Justice and
Court Services Act 2000 (the Act), Chapter 43, Chapters
II (sections 11–17) and III (sections 18–25) and schedule 2
(paragraphs 1–19). Responsibility for Cafcass lies with the
Department for Education and Skills (DfES).
2. Statement of accounts
The statement of accounts of Cafcass for the year ended
31st March 2007 has been prepared in a form directed by
the Secretary of State for Education and Skills with the
consent of the Treasury in accordance with the Accounts
Direction dated 12th April 2002 given under schedule 2,
paragraph 13(2) of the Act.
The accounts are audited by the Comptroller and Auditor
General, who is appointed by Statute. The audit fee is
£54,500 (2005–06 £54,000) and includes no fees for any
non-audit services during 2006–07 (2005–06 £nil).
3. Going concern
The Balance Sheet at 31st March 2007 shows net assets of
£0.713m excluding the pension liability, and net liabilities
of £47.034m including the pension liability. This reflects
the inclusion of liabilities falling due in future years, which,
to the extent that they are not to be met from Cafcass’
other sources of income, may only be met by future grants
or grants-in-aid from Cafcass’ sponsoring department,
the Department for Education and Skills. This is because,
under the normal conventions applying to Parliamentary
control over income and expenditure, such grants may not
be issued in advance of need.
Grant-in-aid for 2007–08, taking into account the amounts
required to meet Cafcass’ liabilities falling due in that year,
has already been included in the Department’s estimates
for that year, which have been approved by Parliament,
and there is no reason to believe that the Department’s
future sponsorship and future Parliamentary approval will
not be forthcoming. It has accordingly been considered
appropriate to adopt a going concern basis for preparation
of these financial statements.
4. Statutory background
Cafcass was established on 1st April 2001. Its primary
duties, as set out in the Act, in respect of family
proceedings in which the welfare of children is or may
be in question, are to safeguard and promote the welfare
of the child, give advice to any court, make provision for
children to be represented and provide information, advice
and support for children and their families.
Cafcass’ specific powers can be found in sections 12, 13,
14, 15 and schedule 2 of the Act. Paragraph 10 of schedule
2 enables Cafcass, subject to directions given by the
Secretary of State, to do anything that appears necessary
Section 6: Accounts 2006–07 | 47

or expedient for the purposes of, or in connection with, the
exercise of its functions. In particular this includes holding
land and other property, entering into contracts, investing
and accepting gifts.
5. Principal activities
Cafcass provides a private law service in relation to private
law Children Act 1989 cases (ie applications for parental
responsibility, residence, contact etc) when these matters
are in dispute between the child’s parents.
10. Cafcass Board members’ responsibilities
Cafcass Board members have corporate responsibilities
relating to the governance of Cafcass as a nondepartmental
public body as set out in the Framework
Document and, therefore, for ensuring that Cafcass
complies with any statutory or administrative
requirements for the use of public funds.
Other important responsibilities of Cafcass Board
members include:
Cafcass provides a public law service, representing
children in relation to public law Children Act 1989
applications for local authority care or supervision orders
and other care related proceedings.
6. Results for the year
The Income and Expenditure Account shows net
expenditure for the year amounting to £107.872m (restated
2005–06: £98.613m). Note 10 provides a reconciliation of
the net expenditure and Cafcass’ performance against
budget for the year.
• ensuring that high standards of corporate governance,
including risk management, financial, operational and
compliance controls are observed at all times;
• establishing the overall strategic direction of Cafcass
within the policy and resources framework agreed with
DfES; and
• ensuring that Cafcass operates within the limits of its
statutory authority and any delegated authority agreed
with DfES and in accordance with any other conditions
relating to the use of public funds.
7. Fixed assets
In line with Treasury requirements, all fixed assets are
included in the Balance Sheet at depreciated current
replacement cost. The most significant addition to fixed
assets during the year was IT equipment costing £1.923m.
8. Future developments
The 2007–2010 Strategic Business Plan, approved by the
Secretary of State for Education and Skills, identifies a
number of objectives and priority areas, within three broad
themes for action over the three years. This is a longterm
plan and many of the activities will be progressed
incrementally over the three years.
Members of Cafcass (including the Chair) must adhere
to Cafcass’ Code of Practice and Rules of Conduct for
Members of Cafcass.
11. Equality of opportunity
Cafcass is fully committed to providing equal opportunity
for all staff. Cafcass follows civil service guidelines
providing that all eligible people must have equality of
opportunity for employment and advancement on the basis
of their suitability for the work. There is no discrimination
on the basis of age, disability, gender, marital status,
sexual orientation, race, colour, nationality, ethnic or
national origin or religion.
New key performance indicators for 2007–08, to support
the delivery of this plan, have also been agreed with the
DfES. Section 1 of the Annual Report provides a full report
on 2006–07 key performance indicators and performance
against the 2005–07 Business Plan.
9. Cafcass Board members
The Chair and members of the Board are appointed under
Chapter 43, schedule 2, paragraphs 1–4 of the Act and
the rules governing this are covered in The Children and
Family Court Advisory and Support Service (Membership,
Committee and Procedure) Regulations 2000 (Section
4(B)) and The Children and Family Court Advisory and
Support Service (Membership, Committee and Procedure)
(Amendment) Regulations 2001. Further Amendment
Regulations came into effect on 1st April 2005.
Our aim is that Cafcass should reflect a diverse, modern
society at all levels to both bring in and bring on talent.
12. Employee involvement
Cafcass and the trade unions have been working within the
revised Partnership Agreement, which extended the remit
of the group to include all staff below Director or National
Head of Service level. The joint committee now meets six
times a year and has taken forward consultations and
negotiations related to policy and service management.
The National Partnership Committee continues to
be supported by regional committees, ensuring the
involvement of a significant number of staff.
It is a sign of a mature relationship with our National
Partnership Committee that we were able to reach
agreement on a pay settlement for staff in a challenging
budget year, and we are now working together on a
Strategic Review of Pay and Reward.
48 | Cafcass Annual Report and Accounts 2006–07

Additional meetings between the trade unions and
Cafcass’ senior managers have been added to the work
programme in the course of the year to ensure effective
communication on Organising for Quality and the
management of change.
Work on key areas such as Service Manager workloads
and revised job roles and a review of the administrative
and business support roles across Cafcass continues.
The job description for Family Support Worker posts has
been revised and a scoping document completed setting
out role boundaries with active trade union support.
13. Health and safety
Health and safety has now assumed an appropriately high
profile within the organisation. Corporate Directors and
senior managers have attended recognised Institution
of Occupational Health and Safety courses and a range
of health and safety related courses covering personal
and office safety have been delivered to staff. An audit
undertaken by an independent safety professional
recorded a “good” standard measured against an audit
model developed from the British Safety Council. The
audit also sampled a range of fire risk assessments for
compliance with the requirements of fire safety legislation
introduced during the year. Several regional staff were
supported through their National Examination Board
in Occupational Safety Health Certificate qualification.
New core issues have been discussed both at the Health
and Safety Steering Group meetings and at Extended
Corporate Decisions Group meetings.
15. Accounting Officer confirmation
As Accounting Officer I confirm that:
• So far as I am aware, there is no relevant audit
information of which Cafcass’ auditors are unaware;
• I have taken all the steps that I ought to have taken to
make myself aware of any relevant audit information
and to establish that Cafcass’ auditors are aware of
that information.
Anthony Douglas
Chief Executive and Accounting Officer
3 July 2007
14. Timeliness in paying bills
Cafcass’ policy is to pay bills in accordance with
contractual conditions or, where no such conditions exist,
within 30 days of receipt of goods and services or the
presentation of a valid invoice, whichever is the later. In
2006–07 81.8% (2005–06: 81.5%) of invoices were paid
within 30 days of the invoice date, based on an analysis of
all invoices.
In November 1998, the Late Payment of Commercial Debts
(Interest) Act came into force, providing small businesses
with a statutory right to claim interest from large
businesses (and all public sector bodies) on payments
that are more than 30 days overdue. Amended legislation
(the Late Payment of Commercial Debts Regulations
2002) came into force on 7th August 2002, providing all
businesses, irrespective of size, with the right to claim
statutory interest for the late payment of commercial
debts. No interest has been claimed by creditors under
this Act.
Section 6: Accounts 2006–07 | 49

The Certificate and Report
of the Comptroller and
Auditor General to the
Houses of Parliament
I certify that I have audited the financial statements of the
Children and Family Court Advisory and Support Service
for the year ended 31st March 2007 under the Criminal
Justice and Court Services Act 2000. These comprise
the Income and Expenditure Account, the Balance Sheet,
the Cashflow Statement and Statement of Recognised
Gains and Losses and the related notes. These financial
statements have been prepared under the accounting
policies set out within them. I have also audited the
information in the Remuneration Report that is described
in that report as having been audited.
Respective responsibilities of the Children and Family
Court Advisory and Support Service, Accounting Officer
and auditor
The Children and Family Court Advisory and Support
Service and Accounting Officer are responsible for
preparing the Annual Report, the Remuneration Report
and the financial statements in accordance with the
Criminal Justice and Court Services Act 2000 and
Secretary of State for Education and Skills’ directions
made thereunder and for ensuring the regularity of
financial transactions. These responsibilities are set out in
the Statement of Accounting Officer’s Responsibilities.
My responsibility is to audit the financial statements
and the part of the Remuneration Report to be audited
in accordance with relevant legal and regulatory
requirements, and with International Standards on
Auditing (UK and Ireland).
I report to you my opinion as to whether the financial
statements give a true and fair view and whether the
financial statements and the part of the Remuneration
Report to be audited have been properly prepared in
accordance with the Criminal Justice and Court Services
Act 2000 and the Secretary of State for Education and
Skills’ directions made thereunder. I report to you
whether, in my opinion, certain information given in
the Annual Report, which comprises the Overview by
the Chair, the Chief Executive’s Report, Management
Commentary, Organisational Structure and the unaudited
part of the Remuneration Report, is consistent with the
financial statements. I also report whether in all material
respects the expenditure and income have been applied
to the purposes intended by Parliament and the financial
transactions conform to the authorities which
govern them.
In addition, I report to you if the Children and Family
Court Advisory and Support Service has not kept
proper accounting records, if I have not received all the
information and explanations I require for my audit,
or if information specified by HM Treasury regarding
remuneration and other transactions is not disclosed.
I review whether the Statement on Internal Control reflects
the Children and Family Court Advisory and Support
Services’ compliance with HM Treasury’s guidance,
and I report if it does not. I am not required to consider
whether this statement covers all risks and controls, or
form an opinion on the effectiveness of the Children and
Family Court Advisory and Support Services’ corporate
governance procedures or its risk and control procedures.
I read the other information contained in the Annual Report
and consider whether it is consistent with the audited
financial statements. I consider the implications for my
report if I become aware of any apparent misstatements or
material inconsistencies with the financial statements. My
responsibilities do not extend to any other information.
Basis of audit opinion
I conducted my audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. My audit includes examination,
on a test basis, of evidence relevant to the amounts,
disclosures and regularity of financial transactions
included in the financial statements and the part of the
Remuneration Report to be audited. It also includes an
assessment of the significant estimates and judgments
made by the Children and Family Court Advisory and
Support Service and Accounting Officer in the preparation
of the financial statements, and of whether the accounting
policies are most appropriate to the Children and Family
Court Advisory and Support Services’ circumstances,
consistently applied and adequately disclosed.
I planned and performed my audit so as to obtain all
the information and explanations which I considered
necessary in order to provide me with sufficient evidence
to give reasonable assurance that the financial statements
and the part of the Remuneration Report to be audited are
free from material misstatement, whether caused by fraud
or error, and that in all material respects the expenditure
and income have been applied to the purposes intended
by Parliament and the financial transactions conform to
the authorities which govern them. In forming my opinion I
also evaluated the overall adequacy of the presentation of
information in the financial statements and the part of the
Remuneration Report to be audited.
Opinions
Audit opinion
In my opinion:
• the financial statements give a true and fair view,
in accordance with the Criminal Justice and Court
Services Act 2000 and directions made thereunder by
50 | Cafcass Annual Report and Accounts 2006–07

the Secretary of State for Education and Skills, of the
state of the Children and Family Court Advisory and
Support Services’ affairs as at 31st March 2007 and of
its net expenditure for the year then ended;
• the financial statements and the part of the
Remuneration Report to be audited have been properly
prepared in accordance with the Criminal Justice and
Court Services Act 2000 and the Secretary of State for
Education and Skills’ directions made thereunder; and
• information given within the Annual Report, which
comprises the Overview by the Chair, the Chief
Executive’s Report, Management Commentary,
Organisational Structure and the unaudited part of
the Remuneration Report, is consistent with the
financial statements.
Audit opinion on regularity
In my opinion, in all material respects the expenditure and
income have been applied to the purposes intended by
Parliament and the financial transactions conform to the
authorities which govern them.
I have no observations to make on these financial
statements.
John Bourn
Comptroller and Auditor General
National Audit Office
157–197 Buckingham Palace Road
Victoria
London
SWIW 9SP
5 July 2007
Section 6: Accounts 2006–07 | 51

Financial Statements
Income and Expenditure Account for the year ended 31st March 2007
Gross income
2006–07 Restated
2005–06
Note £000 £000 £000 £000
Income from activities 3 121 416
Expenditure
Staff costs 4 69,591 65,554
Other pension costs 20 4,321 (1,863)
Self-employed contractors 8 9,730 11,736
Other operating charges 6 22,302 21,051
Depreciation 7 950 1,594
Partnership costs 9 1,099 960
10 107,993 99,032
Net expenditure (107,872) (98,616)
Interest receivable and similar income 11 - 3
Costs of capital charge 1(j) 1,891 1,748
Net expenditure on ordinary activities (105,981) (96,865)
Reversal of cost of capital charge 1(j) (1,891) (1,748)
Net expenditure for the financial year (107,872) (98,613)
Statement of Recognised Gains and Losses for the year ended
31st March 2007
Note
2006–07
£000
Restated
2005–06
£000
Pension fund actuarial gain/(loss) 20 15,023 (22,050)
Net surplus on revaluation of fixed assets 17 226 232
Recognised gain/(loss) for the year 15,249 (21,818)
The notes on pages 54 to 66 form part of these financial statements.
52 | Cafcass Annual Report and Accounts 2006–07

Balance Sheet as at 31st March 2007
31st March 2007 Restated 31st
March 2006
Notes £000 £000 £000 £000
Tangible fixed assets 7 6,402 5,053
Current assets
Debtors 12 1,241 1,535
Cash bank and in hand 13 27 29
Bank 13 - 509
1,268 2,073
Creditors: amounts falling due within
one year 14 (6,223) (7,004)
Net current liabilities (4,955) (4,931)
Provisions for liabilities and charges 15 (734) (457)
Total net assets/(liabilities) excluding
pension liabilities
713 (335)
Provision for pension liabilities 20 (47,747) (58,449)
Total net liabilities including
pension liabilities
(47,034) (58,784)
Capital and reserves
General reserve 16 (47,829) (59,353)
Revaluation reserve 17 795 569
(47,034) (58,784)
Anthony Douglas
Chief Executive and Accounting Officer
3 July 2007
The notes on pages 54 to 66 form part of these financial statements.
Section 6: Accounts 2006–07 | 53

Cash Flow Statement for the year ended 31st March 2007
Note 2006–07
£000
Restated 2005–06
£000
Net cash inflow/(outflow) from operating activities 18a (102,456) (99,393)
Capital expenditure and financial investment 18b (2,531) (489)
Financing 18c 104,373 100,865
(Decrease)/increase in cash (614) 983
The notes on pages 54 to 66 form part of these financial statements.
Notes to the account year ended 31st
March 2007
1 Accounting policies
These financial statements are drawn up in accordance
with the Treasury’s Financial Reporting Manual (FReM)
and applicable accounting standards. They are in a form as
directed by the Secretary of State for Education and Skills
with the approval of the Treasury.
The following accounting policies have been applied
consistently in dealing with items considered material in
relation to the accounts.
a) Accounting convention
The accounts are prepared under the historical cost
convention, modified to include fixed assets at their
value to the business by reference to current costs.
Without limiting the information given, the accounts
meet the accounting and disclosure requirements of the
Companies Act 1985 and accounting standards issued
or adopted by the Accounting Standards Board so far as
those requirements are relevant. The accounts are also
consistent, where appropriate, with generally accepted
accounting practice in the United Kingdom (UK GAAP).
b) Going concern
Parliament has voted grant in aid to Cafcass for the 12
months following the Balance Sheet date. Therefore,
despite the Balance Sheet position of net liabilities,
Cafcass operates as a going concern.
c) Tangible fixed assets
Freehold land and buildings were revalued externally
by the Valuation Office Agency (VOA) as at 1st April 2007
in accordance with the RICS Appraisal and Valuation
Manual, published by the Royal Institution of Chartered
Surveyors, insofar as this is consistent with current
Treasury accounting guidance. Freehold properties are
subject to revaluation by the VOA at least every three years
and by indexation using current cost indices in intervening
years. Leasehold land and buildings and associated
improvements are not subject to revaluation or indexation.
Other tangible fixed assets, except for leasehold property,
have been stated at their value to the business using
appropriate indices published by the Office for National
Statistics. Revaluations above the depreciated historic cost
of an asset are credited to a revaluation reserve. Amounts
equivalent to the depreciation charge on the revaluation
element are then credited to the Income and Expenditure
Account to offset the total depreciation charged on that
asset based on the revalued amount.
Any downward revaluation of fixed assets below the
asset’s depreciated historic cost is offset against any
balance in the revaluation reserve relating to that
particular asset, otherwise it is charged directly to the
Income and Expenditure Account.
Tangible fixed assets include those assets costing £2,500
or more. Individual items valued at less than the threshold
are capitalised if they constitute integral parts of a
composite asset that is in total valued at more than the
threshold. Furniture and fittings are not capitalised but
fully expensed in the year of acquisition.
d) Depreciation
Freehold land is not depreciated.
Depreciation is provided to write-off freehold buildings
and other tangible fixed assets by instalments over their
expected useful lives or, for leased assets, over the life of
the lease.
54 | Cafcass Annual Report and Accounts 2006–07

Expected useful lives are as follows:
freehold buildings
leasehold land and buildings
leasehold improvements
office equipment
computers & telecoms
vehicles
up to 60 years
up to 50 years or over
the term of the lease
over the term of the
lease
seven years
five years
up to four years
e) Pensions
Employees of Cafcass are members of the West Yorkshire
Pension Scheme, which is funded on a pay-as-you-go
basis. The amount charged to the staff costs represents
the contributions payable to the scheme in respect of
current employees in the accounting period. Contributions
are charged on a year-by-year basis in accordance with
the requirements of the scheme administrators.
A small number of Cafcass staff retained membership of
the Principal Civil Service Pension Scheme (PCSPS) by
virtue of their earlier employment with one of Cafcass’
predecessor organisations.
f) Grant-in-aid
Grant-in-aid, used to finance activities and expenditure
that supports the statutory and other objectives of
Cafcass, is treated as financing and credited to the general
reserve, because it is regarded as contributions from a
controlling party.
g) Income from activities
Income from activities is generated from training, student
placements and one-off receipts in the year. Income is
recognised on the issuing of an invoice. All income is
stated net of VAT.
h) Insurance
With the exception of comprehensive insurance on
contract lease and hire vehicles, Cafcass does not insure
but carries its own risks for fire, accidental damage and
similar accidents and claims at common law.
i) Operating leases
Rentals under operating leases are charged to the Income
and Expenditure Account on a straight-line basis over the
lease term.
j) Cost of capital charge
As required by Treasury, a charge is made to the Income
and Expenditure Account for the notional cost of capital.
The notional capital charge, which reflects the cost of
financing capital employed, is calculated at 3.5% (2005–06:
3.5%) of average net assets employed during the year
excluding cash balances held by HM Paymaster General.
In accordance with Treasury guidance the notional charge
is credited back to the Income and Expenditure Account
before determining the surplus or deficit for the year.
k) Accounting for Value Added Tax
Cafcass is registered for VAT. It is unable to recover most
of the VAT incurred on expenditure, although a small
amount of VAT can be recovered where it is related to the
costs recovered in court cases. Expenditure is therefore
stated inclusive of any irrecoverable VAT.
l) Pension scheme
Cafcass participates in a defined benefit pension scheme,
the West Yorkshire Pension Scheme. (It also participates
in the Principal Civil Service Pension Scheme). The assets
of the defined benefit scheme are held separately from
those of Cafcass. The scheme assets are measured using
market values. Scheme liabilities are measured using a
projected unit method and discounted at the current rate of
return on a high-quality corporate bond of equivalent term
and currency to the liability. The pension scheme surplus
(to the extent that it is considered recoverable) or deficit
is recognised in full on the face of the Balance Sheet. The
movement in the scheme surplus/deficit is split between
operating charges, financing items and, in the Statement of
Recognised Gains and Losses, actuarial gains and losses.
2 Change of accounting policy
With effect from the 2006–07 reporting period the FReM
requires NDPBs to account for grants and grants in aid
received for revenue purposes as financing because they
are regarded as contributions from a controlling party
which gives rise to a financial interest in the residual
interest of NDPBs. This is a change in accounting policy
from earlier periods when such items were recorded as
income. The effect of this change on the certified 2005–06
accounts and the impact of the change on the results of
the current year is shown below. Note there is no impact
on the net liability position of Cafcass as a result of this
change in policy.
Section 6: Accounts 2006–07 | 55

At 31st
March 2006
(as previously stated)
£000
Impact of
adopting
the new policy
£000
At 31st
March 2006
(restated)
£000
Net expenditure for 2005–06 2,279 (100,892) (98,613)
General reserve (62,001) 2,648 (59,353)
Deferred government grant reserve 2,648 (2,648) -
3 Income from activities
2006–07
£000
2005–06
£000
Other income 121 397
Award of court costs - 19
121 416
4 Staff costs
2006–07
Cafcass
Board
members
£000
Corporate
National Office
staff
£000
Regional staff
£000
Total
£000
Salaries and wages 149 2,623 53,586 56,358
Social security costs 12 237 4,461 4,710
Other pension costs
(see notes 5/20) - 243 7,175 7,418
Total payroll costs 161 3,103 65,222 68,486
Temporary staff costs - 261 844 1,105
Secondee costs - - - -
Total staff costs 161 3,364 66,066 69,591
Average numbers employed 2 1 51 1,685 1,738
2005–06 £000 £000 £000 £000
Salaries and wages 137 2,397 50,865 53,399
Social security costs 10 280 4,202 4,492
Other pension costs
(see notes 5/20) - 270 5,799 6,069
Total payroll costs 147 2,947 60,866 63,960
Temporary staff costs - 264 1,172 1,436
Secondee costs - 68 90 158
Total staff costs 147 3,279 62,128 65,554
Average numbers employed 2 1 58 1,642 1,702
1 This figure represents the whole-time equivalent of the Board members
56 | Cafcass Annual Report and Accounts 2006–07

The total staff cost includes a cost of £0.955m relating to
a voluntary early redundancy and retirement programme
in 2006–07. In total 29 employees were involved: eight
voluntary redundancies and 21 early retirements.
The average number of persons employed is shown as
full-time equivalents for National Office and regional staff
members on permanent or fixed-term contracts who are
paid through payroll.
The contribution rates reflect benefits as they are accrued,
not when the costs are actually incurred, and reflect past
experience of the scheme.
Ten employees participated in the PCSPS during 2006–07
(2005–06: 10) and none of these individuals were in a
partnership pension account or a stakeholder pension.
5 Pension costs (and see note 20)
Cafcass participates in the West Yorkshire Pension
Scheme and the Principal Civil Service Pension Scheme
(PCSPS). The West Yorkshire Pension Scheme is a multiemployer
defined benefit scheme in which Cafcass’ share
of the underlying assets and liabilities is not identified.
The contribution rate determined by the independent
fund actuaries, Mercer Human Resource Consulting, is
12.8%. This is based on service to Cafcass and ill health
retirements. Employer’s contributions to the Scheme for
the year amounted to £7.33m (including costs of £0.769m
relating to the voluntary early retirement programme)
with 1,769 employees participating in the scheme during
2006–07 (2005–06: £5.99m/1,803 employees).
The last independent actuarial valuation of the West
Yorkshire Pension Scheme was on 31st March 2004 and
revealed that the scheme was 82% funded in relation
to past service. The valuation is based on assets and
liabilities at 31st March 2004. Following the actuarial
valuation, the revised target employer contribution rate at
the end of a six-year phasing-in period was set at 14.5%.
The 2007–08 rate is 13.2%, based on further phasing
between 2008–09 and 2010–11, this means that the total
rate will be payable by 2010–11.
West Yorkshire Pension Scheme will be undergoing the
triennial fund valuation as at 31st March 2007. Regulatory
requirements mean that the valuation must be complete by
31st March 2008 and from this valuation, contribution rates
for the following three financial years to 2010–11 will be set
for all employers participating in the fund.
The PCSPS is an unfunded multi-employer defined benefit
scheme for which Cafcass is unable to identify its share
of the underlying assets and liabilities. A full actuarial
valuation was carried out as at 31st March 2003. Details
can be found in the resource accounts of the Cabinet
Office: Civil Superannuation (www.civilservice-pensions.
gov.uk).
For 2006–07, employers’ contributions of £0.087m (2005–
06: £0.079m) were payable to the PCSPS at one of four
rates in the range of 17.1% to 25.5% of pensionable pay,
based on salary bands. The scheme’s actuary reviews
employer contributions every four years following a full
scheme valuation. Rates increase from 2007–08 to three
rates between 19.5% and 25.5%.
Section 6: Accounts 2006–07 | 57

6 Other operating charges
2006–07
£000
2005–06
£000
Accommodation costs 7,384 7,060
Outsourced accounts and payroll services 2,849 2,844
Office supplies, printing and stationery 1,874 1,678
Recruitment costs 251 343
Travel and subsistence 4,474 4,497
Vehicle expenses 488 492
External consultancy 360 222
Legal costs 783 1,060
External audit costs 55 54
Internal audit costs 95 84
Telecommunications and postage 1,260 1,333
Fuel and utilities 339 283
Total training cost 735 646
Downward revaluation of fixed assets 463 46
(Profit) on sale of assets (5) (153)
Movement in bad debt provision 7 28
Movement in (other) provisions 446 206
Staff related costs 115 72
Interpreters and translators 157 165
Other costs 172 91
22,302 21,051
58 | Cafcass Annual Report and Accounts 2006–07

7 Tangible fixed assets
Freehold land and
buildings
£000
Leasehold land,
buildings and
improvements
£000
Computer
and telecoms
equipment
£000
Other assets
£000
Total
£000
Cost
At 1st April 2006 2,540 1,333 7,469 67 11,409
Additions 593 - 1,923 20 2,536
Disposal - - (5) (21) (26)
Revaluation (148) - (516) - (664)
At 31st March 2007 2,985 1,333 8,871 66 13,255
Depreciation
At 1st April 2006 150 681 5,458 67 6,356
Charged in year 26 159 765 - 950
Disposals - - (4) (21) (25)
Revaluation - - (428) - (428)
At 31st March 2007 176 840 5,791 46 6,853
Net book value
At 31st March 2007 2,809 493 3,080 20 6,402
At 31st March 2006 2,390 652 2,011 - 5,053
The cost of additions to fixed assets is funded through
(capital) grant-in-aid (see Note 16).
Permanent diminutions charged to the Income and
Expenditure Account of £0.093m include diminution of
computer and telecommunications equipment.
Freehold land at 31st March 2007 was valued at £0.953m
(2005–06: £0.823m).
Property assets were independently revalued by the
Valuation Office Agency as at 1st April 2007 in
accordance with the RICS Appraisal and Valuation
Manual, published by the Royal Institution of Chartered
Surveyors, insofar as this is consistent with current
Treasury accounting guidance.
The property values have been provided on the basis of
Existing Use Value (EUV), apportioned between the land
and the buildings with an assessment of the remaining life
of the latter (Practice Statement 4.3).
contractors, they are responsible for meeting travel, office
and all other expenses related to their work, as well as
related tax and national insurance liabilities.
9 Partnership costs
Partnership costs represent the cost of services totalling
£1.099m (2005–06: £0.960m), provided by Cafcass through
third party organisations such as contact centres and
mediation centres.
10 Operating surplus/(deficit)
Cafcass’ payments for 2006–07 were met primarily from
the cash funding available from the Department for
Education and Skills.
Excluding the pension adjustment and related cost of
capital, on a resource basis Cafcass overspent against its
£106.012m resource budget by £0.043m/0.04%.
8 Self-employed contractors
In 2006–07 we contracted the services of 395 selfemployed
contractors of which amounts paid amounted to
£9.730m in the year (2005–06: £11.736m). As self-employed
Section 6: Accounts 2006–07 | 59

2006–07
£000
Total resource budget 106,012
Total revenue expenditure 107,993
Total capital expenditure 2,536
Other operating income (121)
Cost of capital adjustment (32)
110,376
FRS 17 pension charge to Income and
Expenditure Account
(4,321)
Net expenditure 106,055
Under/(over) spend (43)
11 Interest receivable and similar income
2006–07
£000
2005–06
£000
Interest received on staff loans - 3
12 Debtors
31st March 2007
£000
31st March 2006
£000
Other debtors 171 391
Prepayments and accrued income 1,087 1,172
Provision for bad debts (17) (28)
1,241 1,535
There is a balance of £0.012m within Other debtors for amount falling due after one year that relates to accommodation
deposits for two properties.
Intra-government balances
Balances with central government bodies 34
Balances with local authorities -
Balances with NHS Trusts 6
Balances with public corporations 2
Balances with bodies external to government 1,199
Total 1,241
60 | Cafcass Annual Report and Accounts 2006–07

13 Analysis of changes in cash
1st April 2006
£000
Cash flow
£000
31st March 2007
£000
Cash 29 (2) 27
Bank 509 (612) (103)
Total 538 (614) (76)
14 Creditors: amounts falling due within one year
31st March 2007
£000
31st March 2006
£000
Bank overdraft 103 -
Trade creditors 2,502 1,480
Accruals and deferred income 2,554 3,175
Taxation and social security 836 2,289
Other creditors 228 60
6,223 7,004
The Bank overdraft refers to a bank balance which is in funds, but is in overdraft when uncleared payments are taken
into consideration.
Intra-government balances
Balances with central government bodies 500
Balances with local authorities 154
Balances with NHS Trusts 2
Balances with public corporations 8
Balances with bodies external to government 5,559
Total 6,223
15 Provisions for liabilities and charges
Employment claims
£000
Other
£000
2006–07
TOTAL
£000
2005–06
TOTAL
£000
Balance of provision at 1st April 83 374 457 550
Provision utilised in year (31) (138) (169) (299)
Provision reversed unused
in year
(41) (167) (208) (198)
Increase in provision 595 59 654 404
Balance of provision at
31st March
606 128 734 457
Cafcass makes provisions for legal or constructive obligations (liabilities) which are of uncertain timing or amount at
the balance sheet date, on the basis of the best estimate of the expenditure required to settle the obligation.
The increase in provision largely relates to new cases relating to employment claims in 2006–07.
Section 6: Accounts 2006–07 | 61

16 General reserve
31st March 2007
£000
Restated
31st March 2006
£000
Balance at 1st April (59,353) (3,743)
Prior year pension adjustment - (38,262)
Net expenditure for the financial year (107,872) (98,613)
Pension fund actuarial losses 15,023 (22,050)
Add back: Wales fixed assets - (225)
Deferred government grant reserve - 2,675
Grant-in-aid received towards resource expenditure 101,837 100,105
Grant-in-aid received towards purchase of fixed assets 2,536 760
Balance at 31st March (47,829) (59,353)
17 Revaluation reserve
31st March 2007
£000
31st March 2006
£000
Balance at 1st April 569 472
Upward revaluations of fixed assets 231 232
Downward revaluations of fixed assets (5) -
Revaluation released to Income and Expenditure
Account
- (24)
Release to B/S due to transfer of Wales - (111)
Balance at 31st March 795 569
18 Cash flow statement
18a Reconciliation of operating deficit to net cash inflow/(outflow) from operating activities
Note
2006–07
£000
Restated 2005–06
£000
Net expenditure for the financial year (107,872) (98,613)
Depreciation 7 950 1,594
Profit on disposal of fixed assets 6 (5) (153)
Decrease/(increase) in debtors 12 294 (62)
(Decrease) in creditors 14 (884) (249)
(Decrease)/increase in provisions 15 277 (93)
Downward revaluation of fixed assets 7 468 46
Release of revaluation reserve against downward
revaluation of fixed assets
17 (5) -
Increase/(reduction) in pension costs 20 4,321 (1,863)
Net cash inflow/(outflow) from
operating activities
(102,456) (99,393)
62 | Cafcass Annual Report and Accounts 2006–07

18b
Analysis of capital expenditure and financial investment
Note
2006–07
£000
Restated 2005–06
£000
Payments made to acquire tangible fixed assets 7 2,536 737
Payments made to acquire intangible fixed assets 7 - 23
Proceeds from the disposal of fixed assets (5) (271)
Net cash inflow/(outflow) from investing activities 2,531 489
18c
Analysis of financing
Note
2006–07
£000
Restated 2005–06
£000
Grant-in-aid received 16 104,373 100,865
104,373 100,865
19 Commitments
Capital commitments
There were no contracted capital commitments as at 31st March 2007.
Operating lease commitments
Commitments under operating lease to pay rentals during the year following the year of these accounts are given in the
table below, analysed according to the period in which the lease expires.
2006–07
£000
Restated 2005–06
£000
Obligation under operating leases comprise:
Land and buildings:
Expiry within 1 year 317 375
Expiry after 1 year but not more than 5 years 551 1,126
Expiry thereafter 2,489 1,979
3,357 3,480
Other:
Expiry within 1 year 159 220
Expiry after 1 year but not more than 5 years 331 327
Expiry thereafter 19 4
509 551
3,866 4,031
Section 6: Accounts 2006–07 | 63

Other commitments
Cafcass had a three-year contract with Unisys Ltd, ending 31st March 2006. Cafcass has exercised the option of a twoyear
extension to continue to provide finance, payroll and IT managed services. The commitment in 2007–08 is £2.872m
(including VAT).
20 Pension liabilities (FRS17)
WYPF’s actuary, Mercer Human Resource Consulting carried out a FRS 17 valuation for Cafcass as at 31st March 2007.
The scheme provides funded defined benefits based on final pensionable salary. The assets of the scheme are held
separately from those of Cafcass and are invested in managed funds. Employer contribution rates are determined by a
qualified actuary on the basis of triennial valuations.
Cafcass accounts for scheme liabilities in accordance with FRS 17 – Retirement benefits. This is the second year a FRS
17 disclosure has been made and as such there is limited history of movements in liabilities. The in year service cost
has been reflected in the Income and Expenditure Account.
In addition to the disclosure contained in the primary statements, the following disclosures are in accordance with that
standard.
Financial assumptions:
The major financial assumptions used in the valuation were:
31st March 2007 31st March 2006
Rate of inflation 3.1% 2.9%
Rate of increase in salaries 4.85% 4.65%
Rate of increase in pensions 3.1% 2.9 %
Discount rate 5.4% 4.9%
The assumptions used by the actuary are chosen from a range of possible actuarial assumptions, which due to the
timescales covered may not be borne out in practice.
Scheme assets:
The fair value of the schemes assets which are not intended to be realised in the short term and may be subject to
significant change before they are realised, and the present value of the schemes liabilities, which are derived from
cash flow projections over long periods and thus inherently uncertain were:
As at 31st March 2007 As at 1st April 2006
Expected
rate of return
£000
Expected
rate of return
£000
Equities 7.5% 144,233 7.0% 122,967
Government bonds 4.7% 14,306 4.3% 11,481
Other bonds 5.4% 8,035 4.9% 7,987
Property 6.5% 10,386 6.0% 8,486
Cash/liquidity 5.25% 10,190 4.5% 10,316
Other 7.5% 8,819 7.0% 5,158
Total market value of
assets
195,969 166,395
Actuarial value of liabilities (243,716) (224,844)
Deficit in the scheme (47,747) (58,449)
Related deferred tax asset - -
Net pension liability (47,747) (58,449)
64 | Cafcass Annual Report and Accounts 2006–07

The FRS17 valuation as at 31st March 2007 includes assets and liabilities in respect of the deferred members whose
employment was transferred to Cafcass Cymru with effect from 1st April 2005.
Analysis of other pension costs debited to the Income and Expenditure Account:
£000
Current service cost (10,546)
Employer’s contributions 7,310
Past service/curtailment/settlement gain (790)
Net interest/return on assets (295)
Total (4,321)
Analysis of net return on pension scheme:
2006–07
£000
Expected return on pension scheme assets 11,201
Interest on pension liabilities (11,496)
Net gain/(loss) (295)
Analysis of amounts recognised in Statement of Total Recognised Gains and Losses:
2006–07
£000
2005–06
£000
Asset gain/(loss) 2,054 23,281
Liability gain/(loss) 0 (27,594)
Change in assumptions 12,969 (17,737)
Net gain/(loss) 15,023 (22,050)
A five-year summary of experience gains and losses is not available, as Cafcass has only adopted FRS17 in the
last two years.
Movement in deficit during the year:
£000
Deficit in scheme at beginning of year (58,449)
Movement in year:
Current service cost (10,546)
Employer’s contributions 7,310
Past service/curtailment/settlement gain/(loss) (790)
Net interest/return on assets (295)
Actuarial gain/(loss) 15,023
Deficit in scheme at end of the year (47,747)
Section 6: Accounts 2006–07 | 65

21 Related party transactions
Cafcass is an executive non-departmental public body that
is sponsored by the Department for Education and Skills
(DfES). DfES as such is regarded as a related party. During
2006–07, Cafcass had various material transactions with
DfES, including the receipt of £104.373m grant funding
from DfES.
There were no related party transactions with Board
members or the Executive Team during the year other than
those associated with remuneration for normal duties.
22 Events after Balance Sheet date
There have been no events after the Balance Sheet date
requiring an adjustment to the financial statements. The
financial statements were authorised for issue on the 19th
July 2007 by Anthony Douglas (Accounting Officer).
23 Financial instruments
Financial Reporting Standard 13, Derivatives and Other
Financial Instruments, requires disclosure of the role
which financial instruments have had during the period
in creating or changing the risks an entity faces in
undertaking its activities. Because of the largely nontrading
nature of its activities and the way in which
government departments are financed, Cafcass is not
exposed to the degree of financial risk faced by business
entities. Moreover, financial instruments play a much
more limited role in creating or changing risk than would
be typical of the listed companies to which Financial
Reporting Standard (FRS) 13 mainly applies. Cafcass has
very limited powers to borrow or invest surplus funds, and
consequently financial assets and liabilities are generated
by day-to-day operational activities and are not held to
change the risks facing Cafcass in undertaking
its activities.
As permitted by FRS 13, debtors and creditors that mature
or become payable within 12 months from the Balance
Sheet date have been omitted from the disclosures.
Fair values
There is no difference between the book value and fair
value of any of Cafcass’ financial assets and liabilities as at
31st March 2007.
Liquidity risk
Cafcass’ net revenue resource requirements are financed
by resources voted annually by Parliament, just as its
capital expenditure largely is. Cafcass is not therefore
exposed to significant liquidity risks.
Interest rate risk
Cafcass is not exposed to significant interest rate risk.
Foreign currency risk
Cafcass is not exposed to any significant foreign
currency risk.
66 | Cafcass Annual Report and Accounts 2006–07

General contact details
We can be contacted at the National Office address:
Cafcass
8th Floor
South Quay Plaza 3
189 Marsh Wall
London
E14 9SH
Tel: 020 7510 7000
Fax: 020 7510 7001
Further information is available on our website www.cafcass.gov.uk,
including our 2007–10 Strategic Business Plan.
We have several leaflets that explain the work we do, including:
• The Role of Cafcass
• The Children’s Guardian
• The Children and Family Reporter
• The Cafcass Officer in Adoption
• Your views count – how to make a comment, compliment or
complaint about our work.
These leaflets are also available in other languages and can be requested
in other formats.
We also have a series of leaflets for children and young people that explain
the roles of the Children and Family Reporter and the Children’s Guardian.
We are also updating our website to include an animated introduction
to the work of Cafcass for children and young people in three different
age ranges.
Copies of the Cafcass National Standards and the Comments, Compliments
and Complaints policy are available on request from Cafcass offices and
are published on our website.
Printed in the UK by The Stationery Office Limited on behalf of the Controller of Her Majesty’s
Stationery Office
ID5589093 07/07
Printed on Paper containing 75% recycled fibre content minimum.
Section Heading | 67

Published by TSO (The Stationery Office) and available from:
Online
www.tsoshop.co.uk
Mail,Telephone, Fax & E-mail
TSO
PO Box 29, Norwich, NR3 1GN
Telephone orders/General enquiries: 0870 600 5522
Order through the Parliamentary Hotline Lo-call 0845 7 023474
Fax orders: 0870 600 5533
E-mail: customer.services@tso.co.uk
Textphone 0870 240 3701
TSO Shops
16 Arthur Street, Belfast BT1 4GD
028 9023 8451 Fax 028 9023 5401
71 Lothian Road, Edinburgh EH3 9AZ
0870 606 5566 Fax 0870 606 5588
The Parliamentary Bookshop
12 Bridge Street, Parliament Square,
London SW1A 2JX
Telephone orders/General enquiries 020 7219 3890
Fax Orders 020 7219 3866
Email bookshop@Parliament.uk
Internet bookshop.Parliament.uk
TSO@Blackwell and other Accredited Agents
www.tso.co.uk