CPS Annual Report 2005-2006 - PDF - Crown Prosecution Service

58 NOTES TO THE DEPARTMENTAL RESOURCE ACCOUNTS
Leasehold improvements are written off over the shorter of:
a) the remaining life of the property lease;
b) 10 years; or
c) where it has been established that a break clause in the
lease is likely to be exercised by the Department, the
period to the first possible date of exercise of the relevant
break clause.
Intangible Fixed Assets
Intangible fixed assets are depreciated at rates calculated to
write them down to estimated residual value on a straight-line
basis over their estimated useful lives, normally 7 years.
1.5 Operating Income
Operating income is income which relates directly to the
operating activities of the Department, and consists of
administration and programme income. It includes not only
income appropriated in aid of the Estimate but also income to
the Consolidated Fund, which in accordance with FReM is treated
as operating income. Operating income is stated net of VAT.
Administration Income
Administration income is income associated with support to
front-line functions. This relates to the recovery of salaries for
staff seconded to other Government Departments or Local
Criminal Justice Boards and reimbursement of expenditure
under the Government’s Access to Work scheme. It includes
not only income appropriated in aid of the Estimate but also
income due to the Consolidated Fund, which in accordance
with the FReM is treated as operating income.
Programme Income
Programme income is direct income associated with delivery of
front-line functions. The principal element relates to costs
awarded to the CPS. The CPS receives awards of costs made
against convicted defendants at the discretion of the judge or
magistrates. Magistrates’ courts are responsible for recording,
enforcing and collecting these costs, forwarding collected
monies to the CPS and, under delegated authority, for writingoff
awards where the amount outstanding is less than £100.
Bad debts are provided for as a percentage of programme
debtors.
In order to account for cost awards, the CPS uses returns
submitted by the courts in respect of cash collected, transfers
to and from other courts, amounts written off and cost awards
outstanding. The costs reflect the cost of the prosecution but
for administrative purposes are recorded against programme
costs only. Cost award income is included in the objective in the
Statement of Resources by Departmental Aim and Objectives.
Programme income also includes rental income from other
Government Departments in jointly occupied buildings,
commercial sub-tenants and Non-Departmental Public Bodies;
but it also includes other income such as recovery of salaries
for staff seconded to other Government Departments or Local
Criminal Justice Boards and reimbursement of expenditure
under the Government’s Access to Work scheme. Rental
income received from other Government Departments is
netted off against expenditure in accordance with FReM.
1.6 Administration and Programme Expenditure
The Operating Cost Statement is analysed between
administration and programme income and expenditure. The
classification of expenditure and income as administration or as
programme follows the definition of administration costs set
out in the Consolidated Budgeting guidance issued by HM
Treasury. Costs are stated inclusive of VAT.
Administration Costs
Administration costs reflect the costs of running the
department.These include both administrative costs and
associated operating income. Income is analysed in the notes
between that which, under the administrative cost-control
regime, is allowed to be offset against gross administrative costs
in determining the outturn against the administration cost limit,
and that operating income which is not.
Programme Costs
Programme costs reflect non-administration costs being the
direct cost and associated overheads of prosecution including
the employment of counsel and compensation paid to
witnesses for costs incurred through their attendance at court.
Where a Prosecution case is expected to last 40 days or less
(25 days prior to October 2005), payments are made to
counsel using a set fee structure, with a target of payment
within 20 days of receipt of a valid claim. Cases expected to last
in excess of 40 days (or where three trial counsel are
instructed) are excluded from this system and payments to
counsel for these cases may take considerable time to
negotiate. It is not possible to ascertain the actual amount
owed on these cases at year-end until some months later.
In view of this the Department estimates such counsel fees
outstanding for inclusion in these accounts.