NIPS Annual Report and Accounts 2012-13 - Department of Justice

Delivering Structural Change,
Beginning Cultural Change
ANNUAL
REPORT
and Accounts
2012-2013

ANNUAL
REPORT
and Accounts
2

2012-2013
Northern Ireland Prison Service
Annual Report and Accounts
For the year ended 31 March 2013
Laid before the Northern Ireland Assembly
under section 11(3) (c) of the Government Resources
and Accounts Act (Northern Ireland) 2001
by the Department of Justice
on
5 July 2013
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ANNUAL
REPORT
and Accounts
© Crown copyright 2013
You may re-use this information (excluding logos) free of charge in any format or medium,
under the terms of the Open Government Licence. To view this licence,
visit http://www.nationalarchives.gov.uk/doc/open-government-licence
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Where we have identified any third party copyright information you will need to obtain
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Any enquiries regarding this document should be sent to us at:
Northern Ireland Prison Service,
Dundonald House,
Upper Newtownards Road
BT4 3SU
This publication is also available to download from our website at
www.dojni.gov.uk/index/ni-prison-service.htm
ISBN 9781909532601
4

2012-2013
Contents
Annual Report
Foreword By The Director General 6
Statement Of Purpose, Vision And Strategic Aims 8
Chapter 1
Review Of Performance 2012-13 9
• Key Performance Targets 9
• Performance Against Delivery And Development Objectives 12
Chapter 2
Review Of Year 20
Accounts
Report By The Director General 28
Management Commentary 32
Management Board Remuneration Report 36
Operating Review 43
Statement Of Accounting Officer’s Responsibilities 53
Governance Statement 2012- 2013 54
The Certificate And Report Of The Comptroller And Auditor
General To The Northern Ireland Assembly 68
Financial Statements And Notes 70
Appendices
Appendix 1 Prison Population 2012-13 108
Appendix 2 Average Prison Population By Type Of Prisoner 2012-13 109
Appendix 3 Numbers And Recruitment Of Staff 110
Appendix 4 Correspondence Received 111
Appendix 5 Freedom Of Information And Data Protection Metrics 112
Appendix 6 Definitions 113
Appendix 7 Addresses And Contact Numbers 114
5

ANNUAL
REPORT
and Accounts
Foreword By The Director General
I am pleased to present the 2012 – 13 Annual Report and Accounts for the
Northern Ireland Prison Service (hereafter referred to as NIPS or the Service).
This has been a difficult year
for the Service with the callous
murder of our colleague
David Black on 1 November
2012. David joined NIPS on
28 September 1982 and gave
over thirty years of dedicated
service to the community
in Northern Ireland. He was well respected by
everyone who knew him and we continue to mourn
his loss. Our thoughts remain with his wife Yvonne,
his two children and his wider family circle.
Reforming the Service
This is my first annual report as Director General of
NIPS. 2012-13 has been a busy and challenging year
for NIPS, which has seen the implementation of a
number of significant changes as part of our reform
programme.
Good progress is being made against the
extensive programme of reform, guided by the
recommendations made by the Prison Review
Team (PRT). Four recommendations have now
been completed and considerable progress is being
made against the remaining recommendations as
we continue to work with our key partners in the
Department of Justice (DOJ) and the Department of
Health, Social Services and Public Safety (DHSSPS).
We have continued to engage with our key
stakeholders across the statutory, community
and voluntary sectors and have held a number of
workshops addressing issues such as resettlement,
women’s services and health provision.
Key progress across the year
This year has seen major changes in our workforce
with 360 staff leaving the Service as part of the
Voluntary Early Retirement (VER) scheme. There
are now 157 staff remaining on the scheme and
they will leave when it is operationally possible
for them to do so. We have secured funding for
staff to leave under the VER with the exception of
eight Governors and 20 Senior Officers and we will
continue to bid for additional funding to allow these
staff to leave.
The Service has also recruited 241 new Custody
Officers who have been deployed to the three prison
establishments and there are plans to appoint a
further 80 officers over the coming months. As well
as appointing new recruits, 166 Operational Support
Grades (OSGs) and Night Custody Officers (NCOs)
have converted to become Custody Officers. Along
with the remaining experienced officers we have a
dedicated and professional staff who will continue
to transform the Service to provide regimes that
support prisoners through custody and back into the
community.
A major milestone in the reform programme was
the introduction of a new target operating model
at all prison establishments in October 2012. The
model was developed to address staffing levels
and working practices that were out dated and
ineffective. While we are in a transitional phase
with the operating model, we will continue to work
to ensure the right numbers of staff are in the right
place at the right time and that they are doing the
right things.
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2012-2013
On 19 March 2013, the Justice Minister set out
the vision for the prison estate which will include
a secure college at Hydebank Wood, a dedicated
women’s facility, the establishment of three ‘mini
prisons’ in Maghaberry and a replacement prison
at Magilligan. This is an ambitious vision to ensure
we have an estate that is fit for purpose that will
provide a safe, decent and secure environment for
staff, prisoners and visitors.
Other Issues
Tragically there were eight deaths in custody this
year. Whilst inquests have not yet taken place, four
of these deaths were believed to be self inflicted.
Six deaths are currently under investigation by the
Prisoner Ombudsman.
The Prison Service continues to work closely with
the South Eastern Health and Social Care Trust (SET)
to ensure that the needs of vulnerable offenders
are addressed to the highest standards achievable
within a prison setting. We are writing our own
Operating Procedures to make sure we learn lessons
from the investigations and that we continue to
improve our delivery in this important area.
Reports
As well as the implementation of a number
of significant changes as part of the reform
programme, signs of real and positive change have
been acknowledged in reports by the Criminal
Justice Inspectorate (CJINI).
On our management of life sentence prisoners, CJINI
found them to be well managed both in custody and
in the community following their release on license.
In April 2012 CJINI found that considerable progress
had been made to implement 25 recommendations
made in November 2010 as a result of their
report on mistaken prisoner releases. Of the
10 recommendations they noted as remaining
outstanding nine have now been completed.
In December 2012 the findings of an announced
inspection of Maghaberry which took place in March
2012 concluded that progress since the previous
inspection in January 2009 has been made in three
of the four “healthy prison tests.”
However it is also clear from these reports that
much more needs to be done and done quicker.
Action plans have been drawn up to address all
recommendations made and in keeping with our
reform agenda will serve as an important driver for
change.
Looking forward
With many of the reforms to enable change in
place or well progressed NIPS will continue to
drive through the necessary reform to transform
the organisation. It is critical that we build on the
progress we have made and, in particular, ensure
our staff are trained and developed to meet the
challenges that lie ahead. Only by developing
a professional and motivated workforce, that is
effectively led, will we ensure that we provide
opportunities and interventions to support
rehabilitation and the offender back into the
community.
The year ahead will be challenging but it is also full
of potential as our experienced staff continue to
work with the new recruits to develop their skills
and capacity to build a professional service which
is firmly focused on helping offenders to reduce
their risk of reoffending. By continuing to embed
change throughout the organisation, I am confident
we will deliver a high quality and sustainable service
that will help build a safer community in Northern
Ireland.
Sue McAllister
Director General & Accounting Officer
18 June 2013
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ANNUAL
REPORT
and Accounts
Statement Of Purpose, Vision And Strategic Aims
In its final report, published in October 2011, the PRT set out the ideal of a prison system that:
• provides secure custody;
• supports and reflects human rights standards and ethical values;
• is based on the premise that prisoners within it can develop and change and provides the opportunities for
them to do so; and
• shows that it is using and investing public money wisely.
The PRT’s findings have clearly mapped out the strategic direction for the future of the Service as part of a
four year programme of fundamental reform across NIPS.
VISION
NIPS’ vision is that our Service will:
• be well led and competently managed;
• have a fit, flexible, motivated, well trained and well rewarded staff;
• be compact and cost effective;
• have the offender at the centre of its focus;
• reduce the risk of offender re-offending on release; and
• be respected and valued by the community we serve.
STATEMENT OF PURPOSE
As part of our journey towards reform, NIPS has redefined and refocused its statement of purpose as,
“improving public safety by reducing the risk of re-offending, through the management and rehabilitation of
offenders in custody”.
STRATEGIC AIMS
NIPS has also identified three strategic aims, which support delivery against this core purpose. These are:
• safe, secure and decent custody;
• reform and modernise to create an effective and efficient Service; and
• reduce the risk of re-offending.
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2012-2013
Chapter 1:
Review Of Performance 2012-13
PERFORMANCE AGAINST KEY PERFORMANCE TARGETS
NIPS’ Business Plan for 2012-13, produced at the beginning of the year, set out ten key performance targets
(KPTs) for the year as measures on how well the Service was performing. These were developed in line with the
NIPS reform programme and the intention is to build on these measures as the reform programme progresses.
Over the course of the year the Service has met four of these KPTs; details of performance against them are
set out in the table below.
Key Performance Targets
Targets in support of Strategic Aim 1:
Safe, secure and decent custody
OUTTURN
1. No escapes from a secure environment. 7 Target not met
One escape from Newry Courthouse occurred in
September 2012.
2. Reduce the number of erroneous releases 3 Target met
from NIPS Custody to less than the 2011-12 NIPS staff have not been responsible for an
level of 0.26% of the average prison population. erroneous release this year. One prisoner was
released in early June 2012 but this was as a
result of incorrect information being provided
to NIPS by another agency.
3. Reduce the number of instances of self 7 Target not met
harm by 10% from the 2011-12 baseline.
There was a 4% increase in the number of self harm
cases using the average prison population as the
basis for measurement.
4. Reduce the number of eligible complaints 7 Target not met
needing to be investigated by the Prisoner Number of eligible complaints has risen by 9.1%.
Ombudsman by 5% from the 2011-12 baseline. Maghaberry 18% increase.
Magilligan 5.7% decrease.
Hydebank Wood 25% decrease.
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ANNUAL
REPORT
and Accounts
Targets in support of Strategic Aim 2:
Reform and modernise the Service
OUTTURN
5. Following full implementation of the new Target 7 Target not met
Operating Model (TOM) in October 2012, over The functionality to record social activity
the transitional period between October 2012 has been tested on PRISM at Magilligan
and March 2013 there is, on average, 80%
and following evaluation, consideration will
compliance with targets for time out of cell be given to further development and roll out
(up to 10 hours per day midweek and 7.5 hours of this functionality.
per day at weekends).
6. 95% of staff trained in new roles feel that 7 Target not met
training provided has adequately prepared
Not measured. The training programme and
them for these roles as measured through
learning portfolio requires the student to
post course evaluations.
undertake a range of custodial duties across
the spectrum of the prison estate. This programme
is envisaged to be completed over an 18 month
period, after which the evaluation would have validity.
Training for existing staff in discipline grades is being
progressed on a timetable directly linked to the VER
and implementation of the new structures and roles.
It is expected that this training will be rolled out later
this year as the new staff take up posts.
It is believed that measurement of the effectiveness
of the training will be more accurately assessed by
second and third level evaluation.
7. Average annual sick days during 2012-13 are 7 Target not met
no more than 9.5 days per employee.
NIPS will not meet this target for 2012-13. Initial
figures indicate 12.7 days* as the result for NIPS.
8. Cost per prisoner place does not exceed £67,600. 3 Target met
Cost per prisoner place for 2012- 13 was £66,494.
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2012-2013
Targets in support of Strategic Aim 3:
Reduce the risk of re-offending
9. At least 1,100 accreditations in essential skills 3 Target met
are obtained by prisoners during 2012-13. During 2012-13 a total number of 1,245
accreditations were obtained by prisoners across the
NIPS estate: Magilligan - 801, Maghaberry - 367,
Hydebank Wood – 77.
10. At least 30 offending behaviour programmes 3 Target met
are completed by prisoners during 2012-13.
* Initial figures are provided by NISRA and final figures will be available by October 2013.
11

ANNUAL
REPORT
and Accounts
Performance against Delivery
and Development Objectives
This was the second year of the NIPS four year plan, which was developed to achieve the fundamental
changes required to transform the Service. Throughout Year Two, the Service focussed on delivering structural
change and beginning cultural change. This has enabled the Service to prepare for the 2013-14 year of the
Corporate Plan which focuses on delivering cultural change. To achieve this, seven delivery objectives and
seven development objectives were established for 2011-12.
Our seven delivery objectives have enabled NIPS to embed the changes established the previous year as
well as providing methods to continue with both structural and cultural change. The objectives set aimed
to improve communication, develop partnerships, and establish a regime which would improve outcomes
for offenders. Our seven development objectives laid the foundations for cultural change through the
implementation of the TOM, as well as the development of new competency frameworks, and implementation
of the new Corporate Governance Framework.
Progress against each of the delivery and development objectives is set out in a table over the following 7
pages. Of these delivery and development objectives, eight were met in full. Of the remaining six, significant
progress has been made against all of them.
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2012-2013
Performance Against Delivery Objectives
Delivery Objective Comment Target Status
1. NIPS will work closely
with the DOJ and other
partners in the criminal
justice sector to develop
a holistic strategy for
reducing offending.
Once agreed, NIPS will
take forward practical
implementation of those
elements of the strategy
relating to NIPS services
through development of:
> a regime strategy
focused on reducing the
risk of re-offending;
Delivery options for offender management
services were reviewed during 2012 and options
submitted and considered by the Strategic
Efficiency and Effectiveness (SEE) Programme
Board in December 12. A preferred option was
approved by the SEE Programme Board March 13.
During the year a review of the administrative
support function within Offender Management
Units (OMU) was commissioned and completed.
The IT work to support the roll-out of a revised
Offender Management (OM) process was
commenced in January 13 and initial scoping
work for the early phases conducted. Work has
continued to develop the revised OM specification
and practice guidance to support implementation
of PRT Recommendation 30.
Partially met
> an effective system
for assessing prisoner
needs and commissioning
interventions;
Timescales for completion of this work were
revised in year. Work was progressed from
January-March to produce an interim needs
analysis and a report of best practice in other
jurisdictions. Both reports will be completed
during April 2013 although the interim needs
analysis will produce limited findings. A second
data capture exercise of the prisoner population
was completed on 1 April and the initial needs
analysis report will be updated in line with those
findings (estimated completion date April/May
13). An options paper (to deliver a longer term
solution) is to be prepared by end of May 13
setting out the NIPS requirement and delivery
options.
> a joint healthcare and
criminal justice strategy;
DHSSPS leading on the development of the joint
strategy in conjunction with DOJ. Scope has been
developed and working group established.
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ANNUAL
REPORT
and Accounts
Delivery Objective Comment Target Status
> a desistance strategy
which will operate in
partnership with families
and the community;
Discussion paper developed and circulated for
comment to OM Steering Group, SEE Programme
Board and DOJ officials February 13. Proposals
set out in the paper accepted in principle.
> integrated service
delivery in partnership
with PBNI and other public
sector partners.
The review of psychology services will incorporate
the need for joined up services between NIPS and
Probation Board for Northern Ireland (PBNI), and
will include consideration of recommendations
from the CJINI Report on the Management of Life
and Indeterminate Sentenced Prisoners. PBNI
and NIPS senior officials meet on a monthly
basis, where identification of mutual areas of cooperation
are discussed, together with potential
secondment opportunities.
2. NIPS will develop and
introduce an effective
communications strategy
for the Prison Reform
Programme by the end of
June 2012, with effective
communication with
key stakeholder groups
(internal and external)
being initiated from July
2012 onwards.
Communication Strategy has been developed
and launched, including a Vision for the
Future document issued December 2012. The
reintroduction of a staff magazine and regular
SEE updates are also being produced on a regular
basis. Stakeholder Engagement events took place
in October, November and December 2012.
For 2013 -14 targeted stakeholder events took
place in February, March, and April as well as a
department wide stakeholder update and strategy.
3 Objective met
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2012-2013
Delivery Objective Comment Target Status
3. NIPS will implement
the VER, delivering within
the targets outlined in the
approved business case.
The 360 staff approved in the original business
case have left the Service.
The final business case seeking approval for all
staff who had applied to the exit scheme to leave
was agreed by the Department of Finance and
Personnel (DFP) in February 2013.
3 Objective met
Of these additional staff, all but 27 have been
informed that they will leave the service during
the 2013-14 financial year with timing subject
to operational requirements. NIPS is continuing
to work towards securing the necessary funding
to allow the remaining individuals to leave the
Service.
4. NIPS will define the
future operating model for
learning and skills delivery
and develop a robust
action plan for moving
to this model. The action
plan will be developed
and agreed by September
2012.
Resources remain an issue and risk to this delivery
objective, however, the Strategic Outline Case
(1st level business case) has been approved and
work is due to commence on the Outline Business
Case (OBC) (2nd level). A detailed action/
implementation plan has been developed and
will be included in the OBC. A related delivery
objective will be considered for inclusion in the
2013-14 business plan.
Partially met
5. Healthcare staff will
transfer to SET on 1 April
2012.
Complete April 2012 with the exception of 3
members of staff who await the outcome of VER
applications.
3 Objective met
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ANNUAL
REPORT
and Accounts
Delivery Objective Comment Target Status
6. NIPS will agree detailed
implementation plans for
implementing the agreed
new operating models for
Estate Management and
Trades, Catering and the
Dog Handling Unit by 30
June 2012 and implement
these new models in
accordance with the
agreed timetable.
Implementation of the Catering and Dog Projects
are underway. Estates & Trades Project Manager
has been appointed and a delivery plan has been
developed and worked towards.
3 Objective met
7. NIPS will develop a
robust Financial Strategy
and gain Board approval by
the end of April 2012 so
that the Service is put on
a sound financial footing
over the remainder of the
Budget 2010 period.
Finalised and approved by the April Prison Service
Management Board (PSMB).
3 Objective met
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2012-2013
Performance against Development Objectives
Delivery Objective Comment Target Status
1. NIPS will launch a new
TOM in all establishments
on 1 April 2012, with full
implementation by 31
October 2012.
The TOM was launched on 1 April and was fully
implemented by 15 October 2012. The number
of OSGs/ NCOs has been determined.
3 Objective met
2. NIPS will complete
the development of
role descriptions and
competency frameworks
for new operational and
management grades
and design and deliver a
training programme for
operational staff. This
programme will continue
in 2012-13 and specific
objectives for this period
are:
Partially met
> competency framework
for all management
grades, Custody Officers
and Offender Supervisors
completed by September
2012;
This competency framework is now complete.
> training programme
for new Custody Officers
and for OSGs and NCOs
transitioning into the
Custody Officer role
(incorporating a formal
Certificate of Practice)
designed by August 2012
and launched in October
2012;
The design of this programme is complete and the
delivery of this training programme is ongoing.
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ANNUAL
REPORT
and Accounts
CHAPTER Delivery Objective 2: Comment Target Status
> training programme for
staff transitioning into
the four new levels of
management designed
by October 2012 and
delivered by March 2013;
Delayed due to pressures at the Prison Service
College with recruit training.
> training programme
for Offender Supervisors
designed by 31 March
2013.
Development work is ongoing.
3. NIPS will implement
the new Corporate
Governance Framework
by the end of June 2012
and continue to embed
this Framework in the
organisation throughout
2012-13.
The Corporate Governance Framework was
launched in June 2012. An action plan is in place
to fully embed the Framework.
3 Objective met
4. NIPS will complete the
selection of up to 200
Custody Officers and have
all those selected available
for appointment, subject
to final security clearance,
by end of March 2013.
Recruitment process to be completed by June
2013. Recruitment campaign for Phase 2
launched March 2013. Training ongoing - final
classes to enter College in April.
Partially met
5. NIPS will develop a new
Code of Ethics and launch
a new disciplinary system
for operational staff by 30
June 2012.
Code agreed, Professional Standards Unit to be
established in June 2013.
Partially met
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2012-2013
REVIEW Delivery Objective OF YEAR Comment Target Status
6. NIPS will finalise the
Estate Strategy, following
public consultation,
by October 2012 and
implement those elements
identified to be taken
forward during 2012-13.
NIPS draft Outline Estate Strategy, which
sets out proposals for each of the four main
population groups and the reasoning behind the
proposals, was developed and published for formal
public consultation on 7 June 2012. As well as
publishing the document on the NIPS website,
a copy of the strategy and specific consultation
questions was also sent to 369 organisations and
175 individuals. The written consultation exercise
ran for a total of 16 weeks and formally closed
on 28 September 2012. Views were welcomed
on all aspects of the Outline Estate Strategy. A
total of 23 written responses were received. The
Minister outlined his final decisions, in respect of
the development of the prison estate, to the NI
Assembly on 19 March 2013. NIPS subsequently
provided an update to the Justice Committee on
21 March 2013. The final Strategy will be finalised
and published shortly.
Partially met
7. NIPS will define what
the desired future culture
for the Service is by
March 2013 then develop
and agree an action plan
to enable cultural shift
to be embedded in the
organisation during
2013-14.
NIPS cultural change has begun with outlining
the vision and change events will be run in
each establishment and HQ through March, a
development programme for all grades has been
identified to begin that process and work has
begun against the design. The current position has
been baselined and the benefits are being tracked
against that position. The challenge continues
to be the scale of change and the organisations
ability to digest and operationalise that change
quickly due to many challenging and conflicting
priorities for essential skills training and leadership
and change needs.
3 Objective met
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ANNUAL
REPORT
and Accounts
Chapter 2: Review Of Year
Our review of the year starts on a sombre note.
The dreadful murder of Officer David Black on 1
November en route to work at Maghaberry was
greeted with shock and sadness and is a painful
reminder of times which we all hoped had passed.
David was a popular and well-respected member of
staff who will be missed by us all and our thoughts
remain with his wife Yvonne, daughter Kyra, son Kyle
and his wider family circle.
Ongoing oversight of reform
In line with the PRT report published in October
2011 the Prison Reform Oversight Group
continues to oversee the implementation of the
recommendations. The Group is providing essential
input by assisting with the strategic focus of
the programme and providing the right level of
challenge and scrutiny. This is particularly borne out
through the independent element of the Group.
This year NIPS moved into the second year of
our challenging four year business cycle, focused
primarily on the structural and operational reform of
prisons.
REFORM OF NIPS
Our vision is for a modern professional Prison
Service that delivers safe custody, is offender
focused and enables NIPS to build a safer
community in Northern Ireland by helping reduce
the risk of reoffending.
In line with our Corporate Business Plan, year two
of this four year cycle has focused on delivery of
structural change and preparing for cultural
change. This will help us prepare for further change
as well as improve service delivery to and outcomes
for offenders – helping us to ensure we are getting
the basics right, that we are delivering appropriate
interventions and that we can meaningfully evaluate
the consistency and impact of delivery.
Key progress
The Oversight Group agreed, following
independent assessment by CJINI, that four PRT
recommendations (out of 40 in total) have been
completed, they are:
• maintaining and publishing detailed routine data;
• setting up of a change management team;
• setting up of Ministerial oversight group; and
• under 18s to be moved from Hydebank Wood.
Target Operating Model
In May 2012 an agreement to implement key
elements of the Reform Programme was reached
with the Prison Officers Association (POA). This
included a new Staff Deployment Agreement.
A new TOM, based on a five day working week,
and a standard Core Day was launched in April
2012 and rolled out on a phased basis across the
establishments. New staff profiles and shift patterns
were implemented at all three establishments in
October 2012.
Appointment of New Director General
Sue McAllister took up the post of Director General
at the beginning of July and joined NIPS at a crucial
stage of the reform programme. She brings a wealth
of experience to the post and is committed to
driving forward the change agenda.
Exit Scheme
While 544 staff applied to retire under the scheme
in November 2011, the initial business case
approved by DFP only enabled 360 staff to leave.
Work was subsequently undertaken to secure DFP
agreement to an extension of the business case, in
order that the remaining staff may be allowed to
leave.
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2012-2013
Approval for this final business case, allowing all
staff who had applied to leave was received from
DFP in February 2013. All but 27 of the additional
staff have been informed they will be allowed to
leave when it is operationally appropriate for them
to do so. We will continue to work towards securing
the funding necessary to allow the remaining
individuals to leave the Service.
Employee Consultation
The Service recognises the importance of good
industrial relations and is committed to effective
employee relations and communications. Regular
meetings are held with representatives of Trade
Unions under the Whitley Framework. In May 2012
NIPS management and the POA reached agreement
which saw the replacement of the Framework
Document, the introduction of new grades within
NIPS, de-layering the management structure from
seven to four tiers, and the implementation of a
new Industrial Relations Agreement and Disputes
Resolution Procedure. The agreement heralded
a new era of industrial relations within prisons
one which will facilitate the fundamental reform
programme to modernise the Prison Service to
continue apace.
officers have been appointed, no further custody
officers to be appointed from the 2012 competition.
Training
Training has taken place for OSGs and NCOs who
applied to re-grade to Custody Officer, with 166
staff having completed their training by mid-
February 2013.
Communication
How NIPS communicates with staff and
stakeholders was highlighted in the PRT
Report. A dedicated internal communications
strategy manager was appointed in July 2012.
A communications strategy was developed and
agreed by the Prison Service Management Team in
September 2012.
The Prison Service and its Trade Union partners
have continued to engage in detailed discussions
throughout the year in terms of what the reform
programme will mean to staff as it rolls out.
The Service recognises the importance of good
employee relations and is committed to effective
employee relations and communications.
Custody Officer Recruitment
The recruitment campaign for new custody officers
launched in February 2012 received almost 5000
applications for approximately 300 anticipated
vacancies. A rigorous selection process began this
year with all those recruited required to complete
an intensive eight week training course before
deployment to a permanent post. 309 custody
Piloting of new search technology
Two pilot projects to assess whether there is
an effective and less intrusive method than full
searching were carried out this year. The pilots
looked at Millimetre Wave Body Scanners and
ran for three months in Magilligan and Hydebank
Wood. Following the completion of the pilots in
January 2013, evaluation of the project showed
there were limitations to the technology in the
prison environment and that current full searching
processes provided a higher level of assurance.
NIPS will continue to take steps to establish if there
is an effective and less intrusive method than full
searching of ensuring that prisoners leaving and
entering the prison are not carrying contraband.
21

ANNUAL
REPORT
and Accounts
Estate Strategy
A full public consultation was launched in April 2012
on the Outline Estate Strategy in order to take the
views of a wide range of stakeholders. As a result
of this valuable input, the strategy was revised to
best meet the needs of prisoners, the Prison Service
and stakeholders. As a result, the final strategy has
been developed and progress has been made in the
following areas:
• exploring how best to reconfigure Hydebank
Wood as a secure college;
• developing a new, separate, secure custodial
facility for women;
• reflecting the recommendation of the Prison
Review Team regarding dividing Maghaberry into
three ‘mini-prisons’;
• redeveloping the Prisoner Assessment Unit as a
working out unit for prisoners approaching the
end of their sentence; and
• engaging with a number of professional
service providers to consider the options for a
replacement prison on the existing Magilligan
site.
Northern Ireland Community Safety College at
Desertcreat
Work to build a new community safety college at
Desertcreat continued in 2012-13 which culminated
in full planning permission being granted by the
Environment Minister in January 2013.
REDUCING THE RISK OF REOFFENDING
Our focus on reform is ultimately designed
to deliver better outcomes for prisoners and
specifically to help reduce the risk of reoffending
after release. To this end a number of additional
initiatives and improvements have been delivered.
Quoile House
New Disciplinary System
The PRT report recommended that new disciplinary
and appraisal systems should be put in place for
NIPS based on a new Code of Ethics and Values.
Following extensive negotiations with stakeholders
this year NIPS proposed a new Professional Code
of Conduct; a new Professional Code of Ethics and
Values; and a new Professional Standards Unit,
which will investigate allegations of misconduct
or gross misconduct as set out in the new Code of
Conduct and/or new Code of Ethics and Values. The
new system was endorsed by the Justice Committee
in March 2013.
In February 2013 the Minister opened Quoile
House, a 120 cell accommodation block at
Maghaberry Prison. This is a modern state of the art
facility which can hold up to 160 prisoners. It has
four distinct landings which address a wide variety
of issues that impact on the day to day life of a
prisoner and will provide a valuable contribution to
the rehabilitation process.
22

2012-2013
Hate Crime Project
A challenge hate crime project in partnership
between NIPS and NIACRO and funded under the
European Union’s PEACE III Programme concluded
its three year period of research in December 2012.
The research has offered solutions by recommending
a series of changes to policies and procedures, and a
model of intervention to address the behaviours of
those convicted of hate crime.
Family Matters
Maghaberry’s Family Matters programme, which is
a joint initiative between NIPS and Barnardos, was
launched during this year. It is a fully accredited
programme which is designed to encourage fathers
in custody to have positive interaction and develop
strong bonds with their families and children. The
initial programme has proved successful and further
programmes will be facilitated throughout 2013.
Big Book Share
Business Enterprise Skills
Advantage was successful, as a result of partnership
working with the Learning and Skills department
at Hydebank Wood, in securing £500,000 over five
years to fund a social enterprise/employability
training project from the Big Lottery Fund. The
partnership project hopes to deliver a range of
business skills to prisoners that assist in promoting
their employability skills making them better
prepared to join the employment market on release,
or enabling them to consider self-employment as a
realistic option in the future.
Six Book Challenge Awards 2012- Hydebank Win
Silver
Hydebank Wood also received a silver award in
recognition of their achievement in supporting
inmates to complete the Reading Agency’s Six Book
Challenge. This is an annual initiative to inspire
people across the UK to improve their literacy
skills and feel more confident about reading. The
programme invites inmates and prisoners to pick six
books and record their reading in a diary to get a
certificate. As a result 47 participants at Hydebank
Wood gained silver awards.
The Children’s Laureate (2011-2013) Julia
Donaldson, visited Magilligan during March 2013
to promote the Big Book Share. This promotes
and encourages fathers to read stories, poems and
library books to their families in conjunction with
child centred visits.
‘Long Road’ play offers prisoners insight to plight
of victims
A play entitled The Long Road was performed
on two occasions this year at Hydebank Wood.
Performed by actors from the Lyric Theatre, the play
gave the inmates an insight into the consequences
and impact upon victims of knife crime. It is
supported by the Thomas Devlin Foundation, the 15
year old schoolboy who died after he was stabbed in
2005 in north Belfast.
23

ANNUAL
REPORT
and Accounts
Accreditations
In keeping with our commitment to providing
activities for prisoners as a critical part of their
resettlement and personal development, prisoners
achieved accreditations from education classes such
as English, Maths and IT to vocational training such
as Painting & Decorating, Joinery and Horticulture.
The following table summarises the accreditations
gained in the last calendar year:
Education:
including (+Essential Skills)
Vocational
training
Maghaberry 507 (367) 477
Magilligan 1027 (801) 405
Hydebank
Wood 141 (77) 234
Total 1675 (1,245) 1116
+ Essential skills are classed as qualifications in English, Numeracy,
English speaking for other languages (ESOL) and Information,
Communication and Technology (ICT)
24

2012-2013
Koestler Awards
The Koestler Trust is an arts based awards
programme that aims to help offenders acquire
and practice new skills. In 2012-13 prisoners across
the establishments achieved a total of eight bronze
awards, one silver award and three gold awards.
CORPORATE AND SOCIAL RESPONSIBILTY
Charitable Work
HEALTH AND WELL BEING
Working Group on Managing Stress (WGoMS)
The work of the NIPS WGoMS continued
throughout the year focussing on the development
of a stress awareness package, for inclusion in the
training for the new custody officer recruits joining
the Service. NIPS has worked closely with the Health
and Safety Executive in the development of this
training package in order to ensure that it fulfils
our mandatory legislative requirements and it is
intended that this will be rolled out to all existing
officers during the up-skilling process which will take
place.
PUBLIC CONFIDENCE IN NIPS
Roe House Protest
NIPS were pleased that all prisoners in Roe House
ceased their protest action with effect from 29
November 2012. Protest action, which included
a dirty protest, began in May 2011. The ending
of the protest by separated republican prisoners
removed a barrier allowing for the creation of a
better environment which will be of benefit to both
prisoners and staff alike. The Agreement of August
2010 has been and continues to be honoured by the
Prison Service.
Erroneous Releases
One erroneous release occurred in June 2012
which was a result of incorrect information being
provided to NIPS by another agency. NIPS take
its responsibilities in respect of public safety
very seriously and continues to work with other
relevant agencies to mitigate against such incidents
occurring.
Prisoners at Magilligan Prison involved in the Duke
of Edinburgh Award Scheme joined others in the
joinery workshops to produce 350 nesting boxes
of varying designs for the Royal Society for the
Protection of Birds.
Foyleview Unit continues to carry out work for
many charitable, voluntary and community based
organisations. This year their work included painting
buildings for local play groups, primary schools and
sporting organisations, such as, football and GAA
clubs.
This year prisoners from Foyleview were also
involved in preparation of the circuit for the North
West 200 motorcycle races and the locations for
the Milk Cup Youth Football Tournament.
In total, prisoners in Foyleview carried out work
for the benefit of 40 voluntary or charitable
organisations in the North West of the province.
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ANNUAL
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and Accounts
Helping the Environment
This year Hydebank Wood purchased a food
composter to assist the prison in meeting
government targets to reduce waste to landfill. It
has allowed prisoners to produce compost for the
gardens.
DIVERSITY
Lithuanian concert in Maghaberry
Maghaberry Chapel hosted a bilingual concert
(Lithuanian & English) by the group “Gintautas
Tautkus” on 15 February 2013. Organised in
conjunction with the Equality & Diversity Office, the
group of Lithuanian musicians played to an audience
of local and Eastern European nationals. The concert
and dialogue offered some cultural diversity within
the walls of Maghaberry, and a rare opportunity for
some of the men who do not get domestic visits
to meet and talk with the musicians in their own
language.
Chinese New Year
On 26 January 30 prisoners celebrated the Chinese
New Year at an event held in the prison Chapel at
Maghaberry and everyone who attended enjoyed
a meal which had been prepared by some of the
Chinese prisoners.
SAFER CUSTODY
NIPS maintains a strong partnership with the
Samaritans and a special event was held in June
2012 in Magilligan Prison to celebrate 10 years of
the Samaritans Listener. Listeners provide a patient
and compassionate ear for vulnerable prisoners who
are emotionally distressed, or at risk of self harm.
They make a positive contribution to safer custody
within prisons.
Initiatives such as the Donard Programme at
Maghaberry and the Public Initiative for the
Prevention of Suicide and Self-Harm (PIPS), a
service which provides specialist suicide support for
young people at Hydebank Wood, also help us to
ensure that we can provide appropriate support and
therapeutic interventions for those entrusted to our
care.
A series of events were also held in all prisons as
part of World Suicide Prevention Day. Staff were
joined by volunteers from the Samaritans to remind
prisoners of the services and procedures that are in
place to assist those experiencing feelings of despair,
including those feeling suicidal.
Staff Mentoring Scheme - update
Following the successful launch of the NIPS ‘Pass
It On’ Mentoring scheme in October 2012 a
number of mentor and mentee relationships were
established. All mentors were offered training to
equip them with the necessary skills to enable them
to successfully undertake this role. We intend to
launch the 2013-14 scheme to coincide with the
new performance reporting cycle in April 2013.
26

2012-2013
REPORTS AND INSPECTIONS
CJINI has carried out a number of inspections and
published a range of reports during the year:
• The Justice Minister had invited CJINI to
undertake an inspection following two prisoners
being released in error. CJINI published a follow
up report in April 2012 which highlighted that of
the 25 recommendations for improvement, the
Prison Service had met 14 in full and partially
completed 10 recommendations. One was found
to be no longer relevant. The Minister tasked the
Prison Service with fully implementing the 10
outstanding recommendations, nine of which
have now been completed.
• In February 2013 CJINI conducted an inspection
of Hydebank Wood Young Offenders Centre and
Prison. The report is expected to be published
later this year; initial feedback from the
inspectors highlighted their disappointment at
the lack of progress in most areas since their last
inspection.
• In July 2012 CJINI published their report on
the management of life sentence prisoners
which stated that both life and indeterminate
sentenced prisoners were well managed in
custody and in the community following their
release on licence. Areas for improvement were
identified but significant progress was also noted
by the inspectors since their last report in 2009.
The report made strategic recommendations
and identified areas where improvements could
enhance operational practice.
• A report was also published on the announced
inspection in Maghaberry Prison in March 2012.
This inspection was conducted by CJINI and
Her Majesty’s Chief Inspector of Prisons. The
inspection made six main recommendations, 87
other recommendations and 20 housekeeping
points. The implementation of the accepted
recommendations is being taken forward by
the Prison Service and, in the case of healthcare
issues, by the South Eastern Health and Social
Care Trust.
27

ANNUAL
REPORT
and Accounts
Report By The Director General
HISTORY AND STATUTORY BACKGROUND
MANAGEMENT
NIPS was established as an Executive Agency of the
Northern Ireland Office (NIO) in April 1995 under
the Government’s Next Steps Initiative.
On 12 April 2010, an amendment to schedule 3
of the Northern Ireland Act 1998 devolved justice
functions in Northern Ireland to the Northern
Ireland Assembly, and DOJ came into existence as a
new Northern Ireland department. From this date
NIPS became an Executive Agency of DOJ.
The annual report and accounts of NIPS for the year
ended 31 March 2013 will be laid in the Northern
Ireland Assembly.
NIPS complies with the corporate governance and
accountability framework arrangements (including
Managing Public Money Northern Ireland) issued by
DFP.
AIMS AND OBJECTIVES
The Service is responsible for providing prison
services in Northern Ireland. Its core purpose
is to improve public safety by reducing the risk
of reoffending through the management and
rehabilitation of offenders in custody. In doing so
the Service has contributed to the strategic aims
and objectives of DOJ, in particular to “reducing
offending and dealing with its consequences”.
Our delivery against this core purpose is supported
by three strategic aims which provide the focus for
everything we do. These are:
• safe, secure and decent custody;
• reform and modernise to create an effective and
efficient Service; and
• reduce the risk of re-offending.
NIPS is headed by a Director General who is
supported by a Management Board consisting of
three Executive Directors and three Non-Executive
Directors, and the NIPS Change Manager.
The Service’s Management Board is responsible
for the strategic and business management of
the Agency’s operations. At 31 March 2013, the
Management Board was as follows:
• Sue McAllister – Director General;
• Ronnie Armour – Director of Human Resources
and Organisation Development;
• Max Murray – Director of Offender Policy and
Regimes;
• Joanne McBurney – Director of Finance &
Corporate Services;
• Patricia Gordon – Non-Executive Director;
• Phil Wheatley CB – Non-Executive Director;
• Paul Leighton – Non-Executive Director; and
• Mark Adam – NIPS Change Manager.
Appointments to the Management Board (except
for the Non-Executive Directors) are made in
accordance with the Civil Service Commission’s
general regulations.
Changes during the year to the membership of
PSMB:
• Sue McAllister was appointed Director General
on 3 July;
• Gary Boyd stepped down as Acting Director of
Finance, Planning & Corporate Compliance on 7
October 2012;
• Joanne McBurney was appointed Director of
Finance & Corporate Services and took up post
on 8 October 2012; and,
• Mark Adam joined PSMB as Change Manager in
July 2012.
28

2012-2013
Details of the salary and benefits of the
Management Board members are disclosed in the
Remuneration Report on pages 36 to 42.
Pension Liabilities
The Northern Ireland Prison Service makes employer
contributions to the following pension schemes:
BOARD MEMBERS’ INTEREST
Details of all Board members’ interests which may
conflict with their management responsibilities are
disclosed in Note 23 of the Financial Statements.
BUSINESS REVIEW & FUTURE DEVELOPMENTS
• Principal Civil Service Pension Scheme GB; and
• Principal Civil Service Pension Scheme NI.
Details of the pension arrangements of the above
schemes are disclosed in the
Remuneration Report and in Note 1 and Note 3 of
the Financial Statements.
The total net operating cost for the year was
£173,660k (2011-12: £154,990k, restated). The
2011-12 figures have been restated to reflect.
Injury on Duty Provision
The Injury on Duty provision was valued in
accordance with IAS 19 Employee Benefits. IAS
19 requires the employer to value the expected
injury awards for active members who are currently
uninjured but who may become injured in the
future, and include the value in the Statement of
Accounts.
Equality and Diversity
NIPS has in place Harassment Contact Officers
trained to provide guidance, support and advice
to staff who have been subjected to, or accused
of offensive conduct or unacceptable behaviour.
Mediation Officers are available to provide an
impartial, confidential process to help resolve
disputes between members of staff quickly, and in a
way that empowers staff to seek their own solutions
with the aim of improving the relationship. These
interventions have been proven to be effective in
the early resolution of disagreements.
This amounts to a change in accounting policy
which has been treated as a prior year adjustment
in line with IAS 8 and prior year comparative
figures have been restated. This has resulted in an
increase to the opening provision at 1 April 2011 of
£1.66million and a further increase during the 2011-
12 year of £190k. These adjustments are reflected
in the main statements and in notes 5, 17 and 27 to
these financial statements.
A full review of the business during the year and its
future development is set out in the Management
Commentary on pages 32-35 and in the Agency’s
Corporate and Business Plan.
Absenteeism
Absence through sickness has continued to be
high in the Service, although initial figures indicate
a fall in sick absence from 15.2 days in 2011-
12, to 12.7 days in 2012-13. NIPS’ response has
been to robustly apply the NICS Sickness Absence
& Inefficiency Sickness Absence Policies and
to remind staff at all levels of how they should
manage sickness absence and to work closely with
Management.
29

ANNUAL
REPORT
and Accounts
Child Protection
NIPS Safeguarding Children policy has been designed to protect all children, and young people aged under the
age of 18, whether visiting prison establishments, or with whom prisoners are in contact, or who as babies are
continuing to be cared for by a mother in prison.
NIPS appreciates that child protection must not be an isolated role or function because by its very nature
‘keeping children safe is everyone’s responsibility’. The Prison Service recognises the importance of its close
links with Health and Social Care Trusts, PBNI, PSNI and voluntary agencies. We need their help in identifying
those who may pose a risk of harm to children, their assessment and in providing appropriate intervention.
The Director of Offender Services represents NIPS on the Safeguarding Board for Northern Ireland (SBNI)
which was established by DHSSPS in 2012 in recognition of the fact that children are more likely to be
protected when agencies work in an all-inclusive, co-ordinated and consistent way.
The Safeguarding Children Framework and Guidance has been reviewed and the Prison Service Management
Board approved the revised policy in November 2012. It is available on the NIPS website.
Child Protection Cases Log: 2012-13
No. of Referrals No. of Referrals Open Closed
to Child Protection to Social Services
Co-ordinator
Gateway Teams
Maghaberry 1 1 1
Magilligan 1 1 1
Hydebank Wood 8 8 1 7
Circular ‘HSS CC 3/96 (Revised) ‘Sharing to Safeguard’, issued by DHSSPS and issued to staff, provides
guidance and a framework for statutory and voluntary agencies to share information, in a planned way, about
individuals posing, or likely to pose, a risk of harm to children, in certain circumstances. The above table sets
out the number of notifications made to Social Services by establishment PBNI offices on behalf of the
Service.
Health and Safety
The Service is committed to providing for staff, prisoners and visitors an environment that is as far as possible
safe and free from risk to health. In line with this commitment, the Service complies with the relevant Health
and Safety legislation.
Charitable Donations
There were no Charitable Donations made by Northern Ireland Prison Service during the year. (2011-12: £0).
30

2012-2013
Payment of Suppliers
In November 2008 the Minister for Finance and
Personnel announced that Northern Ireland
departments would aim to ensure that valid invoices
were paid within 10 days. Unless otherwise stated
in the contract, payment is normally due within 30
days of the receipt of goods or services or within
30 days of the presentation of a valid invoice,
whichever is later.
Monthly statistics submitted to DOJ highlight
that the Service has consistently achieved 99% of
payments to suppliers within 30 days and more than
87% of payments to suppliers within 10 working
days during the majority of the financial year. In
terms of the overall performance for
2012-13, 87.7% of invoices were paid within
10 working days following receipt of a properly
rendered invoice (2011-12: 89.1%). The Service is
committed to prompt payment within 10 days.
Reportable Loss of Data
There was one reportable data loss during
2012-2013. In this incident, a member of the
public handed in a file to NIPS staff after it had
been discovered in a second hand file cabinet.
A continuing programme of improvement to
Information Assurance is underway, including
the establishment of a dedicated lead and
formal organisational structure. The Information
Commissioner’s Office is currently investigating the
circumstances.
Audit
Responsibility for the audit of NIPS’ financial
statements for 2012-13 rests with the Comptroller
and Auditor General (C&AG) for Northern Ireland.
The Certificate and Report of the Comptroller and
Auditor General is produced at pages 68-69.
So far as the Accounting Officer is aware, there
is no relevant audit information of which the
entity’s auditors are unaware, and the Accounting
Officer has taken all the steps that she ought to
have taken to make herself aware of any relevant
audit information and to establish that the entity’s
auditors are aware of that information.
The notional audit fee for the work performed by
the staff of the C&AG during the reporting period,
and which relates solely to the audit of these
Financial Statements, was £42k (2011-12: £42k).
The C&AG may also undertake other statutory
activities that are not related to the audit of the
Service’s Financial Statements such as Value for
Money reports. No such activity took place during
the year.
Sue McAllister
Director General & Accounting Officer
18 June 2013
Accounting Responsibilities
The Agency’s Financial Statements have been
prepared in accordance with directions given by DFP,
under section 11(2) of the Government Resources
and Accounts Act (Northern Ireland) 2001.
31

ANNUAL
REPORT
and Accounts
Management Commentary
FINANCIAL REVIEW
FINANCIAL PROVISION & CASH FLOW
NIPS was financed as part of the overall DOJ Departmental Expenditure Limit voted by the Northern Ireland
Assembly for 2012-13. The total cash required for the year was £140,456k (2011-12, £139,560k).
The Service has complied with the cost allocation and charging requirements set out in DFP guidance and
therefore adheres to the guidelines on fees and charges in Managing Public Money (Northern Ireland).
These accounts are prepared on that basis and in accordance with the 2012-13 Government Financial
Reporting Manual (FReM) issued by DFP, and directions given by DFP, under section 11(2) of the Government
Resources and Accounts Act (Northern Ireland) 2001. The accounting policies contained in the FReM apply
International Financial Reporting Standards (IFRS) as adapted or interpreted for the public sector context.
PRISONER POPULATION
The Northern Ireland Prison Service through 2012-13 held an average of 1776 (2011-12; 1,728) prisoners
representing an average increase of 2.7% in prisoner population from the previous year.
Prisoner Population 2001 - 2013
1900
1850
1800
1750
1700
1650
1600
1550
1500
1450
1400
1350
1300
1250
1200
1150
1100
1050
1000
950
900
850
800
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
32

2012-2013
CAPITAL COSTS
During the year the NI Prison Service invested further in its prison estate and infrastructure incurring £7,284k
(2011-12, £18,998k) in expenditure on capital assets. Details of the movement of property, plant and
equipment and intangible assets are set out in Notes 8 and 9 to the Financial Statements. There were notable
improvements undertaken to the estate during the year with more than 50 projects having been undertaken. A
sample of the projects undertaken are summarised below:-
• New Cell Accommodation Maghaberry
The completion of new cell accommodation at Maghaberry created an additional 120 cells at the site. The
new build provides safer cell furniture, anti-ligature windows, in cell sanitation and enhanced fire safety
measures together with specialist cells provision.
• Biomass Boiler
To reduce the prisons carbon footprint a new 500kw Biomass Boiler has been installed at Maghaberry.
• Upgrades at Hydebank
A rolling programme of improvements to upgrade the two oldest accommodation blocks at Hydebank (Elm
/ Willow) commenced in 2012-13.
• Energy / Environmental Projects
During the last twelve months many environmental improvements have been added to the prison estate
including solar panels, air source heat pump, rainwater harvesting and water saving devices.
• Older Prisoner Unit Magilligan
A range of improvements have been made to this H-block in response to disability access surveys as this
block houses a more elderly population.
33

ANNUAL
REPORT
and Accounts
RESOURCE COSTS
The net cost of operations for the year as shown in the Statement of Comprehensive Net Expenditure on page
70 is £173,660k (2011-12, £154,990k Restated). The Prison Service incurred expenditure during the year as
follows:
Operating Costs 2012-13 2011-12
£k £k Restated
Staff Costs * 84,531 89,360
Net Running Costs ** 30,311 25,898
Depreciation 11,829 10,759
Operating Expenditure
(excluding non standard costs) 126,671 126,017
Injury Benefit Provision
(including unwinding of discount) -27 75
VER scheme & SEE Programme pay costs,
expenses and Provision
(including unwinding of discount) 43,873 24,571
Hearing Loss Provision 1,176 -
Impairments 1,673 4,025
Prison Service Trust (PST) Grant 294 302
Net Operating Costs 173,660 154,990
* Costs exclude cash payments and accruals relating to the pay costs of the VER & SEE Programme
£22,767k (2011-12: £22,853K)
** Costs exclude the movements in the Injury Benefit Provision -£31k (2011-12 Restated: £75k), movements
in the VER £20,285k (2011-12: £1,158k), expenses of the VER and SEE Programme £821k
(2011-12: £560k), movements in the Hearing Loss Provision £1,176k (2011-12: £0k)
Net operating costs increased by £18,670 from the restated 2011-12 figures, representing a 12% increase
during 2012-13.
The main reason for this increase is the NIPS VER scheme launched by the Minister on 8 November 2011. In
2012-13; 192 (2011-12; 299) applications have been approved costing £41.7m (2011-12: £23.9m). Further
details are in Notes 3 & 17 to the financial statements.
Impairments for the financial year 2012-13 for all classes of assets amount to £1.7m, mainly due to a negative
movement in the Land and Property Services building index.
The impairments in 2011-12 mainly resulted from the 5 yearly revaluation of the NIPS Estate by Land and
Property Services.
34

2012-2013
COST PER PRISONER PLACE
DOJ Departmental Strategic Objectives (DSO) set
out the targets the department would deliver in
return for the resources it had been allocated. DSO
2, of the DOJ stated that the department would
provide a cost effective Prison Service, by ensuring
that the annual Cost Per Prisoner Place in Northern
Ireland falls to £67,600 by 2012-13. The target
is calculated by dividing Operating Expenditure
(excluding non-standard costs) by the average
total available places defined as Certified Normal
Accommodation.
The actual Cost per Prisoner Place in Northern
Ireland over 2012-13 was £66,494.This is below the
target of £67,600.
2012-13 2012-13
Actual Target
Operating
Expenditure (£k) 126,671 128,778
Prisoner places
(C N A) 1,905 1,905
Cost per
Prisoner Place (£) 66,494 67,600
The operating expenditure relates to the resource
expenditure outturn with non-standard cost items
removed. These relate to the costs associated
with movements in respect of the VER Provision
(including unwinding of discount) for employees
leaving the service as part of the NIPS Exit Scheme,
pay costs and expenses, SEE Programme pay costs
and expenses, Injury Benefits Provision for payments
due to former employees, Impairments arising from
the revaluation of NIPS fixed assets and the grant
paid to the PST.
35

ANNUAL
REPORT
and Accounts
Management Board Remuneration Report
Remuneration Policy
The remuneration of senior civil servants is set
by the Minister for Finance and Personnel. The
Minister approved a restructured Senior Civil
Service (SCS) pay settlement broadly in line with
the Senior Salaries Review Board report which
he commissioned in 2010. The commitment to a
Pay and Grading Review for SCS was the second
phase of the equal pay settlement approved by the
Executive.
The Corporate Change Manager was appointed
under an Operational Partnership Agreement with
the Strategic Investment Board for a fixed term of 3
years and the salary was approved by the Strategic
Investment Board Remuneration Committee.
Service Contracts
Civil service appointments are made in accordance
with the Civil Service Commissioners’ Recruitment
Code, which requires appointment to be on merit
on the basis of fair and open competition but also
includes the circumstances when appointments may
otherwise be made.
The remuneration of the Non-Executive Directors
was determined by the Director General, taking
account of guidance issued by the Office of the
First Minister and deputy First Minister on the
appointment of independent Non-Executive
Directors.
• Phil Wheatley CB was appointed as a Non-
Executive Director and member of PSMB with
effect from 16 January 2010 on a three year
contract. He stepped down temporarily on 20
July 2010 to take up a position with the PRT.
He returned as a member of the PSMB on 1
November 2011 following completion of his
work with the PRT and his contract was renewed
for a further 3 years.
• Patricia Gordon was appointed as a Non-
Executive Director and member of PSMB with
effect from 25 February 2010 on a three year
contract. The contract was extended for a
further 3 years in February 2013.
• Paul Leighton was appointed as a Non-Executive
Director and member of PSMB on 1 November
2011 on a three year contract.
Unless otherwise stated below, the officials
covered by this report hold appointments which
are open-ended. Early termination, other than for
misconduct, would result in the individual receiving
compensation as set out in the Civil Service
Compensation Scheme.
Further information about the work of the Civil
Service Commissioners can be found at www.
nicscommissioners.org.
• Peter Toogood agreed to become an Independent
Committee member of the NIPS Audit and
Risk Committee on 1 April 2013 on a two year
appointment.
• Two Non-Executive Members, Donald Price and
Robert Jonathan Hegan, were appointed to the
Magilligan Prison Redevelopment Programme
Board on 1 November 2008 for a three-year
period. They are not members of PSMB. The
Magilligan Prison Redevelopment Board ceased in
April 2012.
36

2012-2013
Salary and Pension Entitlements
The following sections provide details of the remuneration and pension interests of the senior management of the Agency.
Board Member 2012-13 2012-13 2012-13 2011-12 2011-12 2011-12
Salary Bonus Benefits Salary & Bonus Benefits
& allowances £’000 in Kind allowances £’000 in Kind
£’000 (to nearest £’000 (to nearest
£100) £100)
Sue McAllister
Director General *70-75 - 15,800 - - -
(from 2 July 2012) (100-105)
Colin McConnell
Director General *15-20
(until 20 May 2012) (110-115) - 2,500 110-115 - 21,600
Max Murray**
Director of Offender Services *75-80 - -
Acting Director General (85-90) 0-5
(from 21 May to 2 July 2012) 10-15 - 85-90
(95-100)
Ronnie Armour
Director of Human Resources 60-65 - - 60-65 - -
and Organisational
Development
Joanne McBurney
Director of Finance and *30-35 - - - - -
Corporate Services (60-65)
(from 8 October 2012)
Gary Boyd
Acting Director of Finance, *30-35 - - *5-10 - -
Planning and Corporate (60-65) (55-60)
Compliance (from 6 February
2012 to 7 October 2012)
Pat Maguire
Acting Director of Offender *25-30 - - - - -
Services (from 30 April 2012 (85-90)
to 27 August 2012)
Mark Adam
Corporate Change Manager *80-85 - 30,900 - - -
(from 8 May 2012) (100)
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and Accounts
Board Member 2012-13 2012-13 2012-13 2011-12 2011-12 2011-12
Salary Bonus Benefits Salary & Bonus Benefits
& allowances £’000 in Kind allowances £’000 in Kind
£’000 (to nearest £’000 (to nearest
£100) £100)
Graeme Wilkinson
Director of Finance, Planning - - - *40-45 - -
and Corporate Compliance (55-60)
(from 1 July 2010 to
16 December 2011)
Phil Wheatley CB *0-5
Non-Executive Director 5-10 - - (5-10) - -
Paul Leighton *5-10
Non-Executive Director 10-15 - - (10-15) - -
Patricia Gordon
Non-Executive Director 5-10 - - 5-10 - -
Michelle Egan CB
Non Executive Director
(until 29 February 2012) - - - 5-10 - -
Sid McDowell
Non Executive Director
(until 31 July 2011) - - - 0-5 - -
Donald Price
Non-Executive member of *0-5 - - 5-10 - -
Magilligan Prison (5-10)
Redevelopment Programme
Board (until 30 April 2012)
Robert Jonathan Hegan
Non-Executive member of *0-5 - - 5-10 - -
Magilligan Prison (5-10)
Redevelopment Programme
Board (until 30 April 2012)
38

2012-2013
Board Member 2012-13 2012-13 2012-13 2011-12 2011-12 2011-12
Salary Bonus Benefits Salary & Bonus Benefits
& allowances £’000 in Kind allowances £’000 in Kind
£’000 (to nearest £’000 (to nearest
£100) £100)
Median Salary Disclosure
Band of highest paid
director’s total remuneration £130-135 £130-£135k
Median total remuneration £28,137 £32,605
Ratio 4.71 4.06
* Indicates that the individual was in post for part of year only. Full year equivalents are noted beside part year
amounts in brackets.
** In line with the SCS pay award arrangements for 2012, staff who, after assimilation to the new pay scales,
received less than 1% consolidated increase to their salary received a non-consolidated pensionable payment
to bring them up to the equivalent value of 1%. 1 official received a non-consolidated pensionable payment in
the pay band £0 - £5,000.
Median Salary Disclosure
Reporting bodies are required to disclose the
relationship between the remuneration of the
highest-paid director in their organisation and the
median remuneration of the organisation’s workforce.
The banded remuneration of the highest-paid director
in the Northern Ireland Prison Service in the financial
year 2012-13 was £130-135k (2011-12, £130-
135k). This was 4.71 times (2011-12, 4.06 times) the
median remuneration of the workforce, which was
£28,137 (2011-12, £32,605).
Total remuneration includes salary, nonconsolidated
performance-related pay, benefits in kind but
excludes severance payments. It does not include
employer pension contributions and the cash
equivalent transfer value of pensions.
Salary
‘Salary’ includes gross salary; overtime; reserved
rights to London weighting or London allowances;
recruitment and retention allowances; private office
allowances and any other allowance to the extent
that it is subject to UK taxation and any gratia
payments. The salary range reflects remuneration
for the months in office, but where relevant the full
year equivalent (FYE) is also provided. The Agency
did not make any contributions to a Board Member’s
partnership pension account.
Benefits in Kind
The monetary value of benefits in kind covers any
benefits provided by the employer and treated by HM
Revenue and Customs as a taxable emolument. The
net benefits in kind shown above are in respect of
detached duty allowances and expenses, on which the
tax payable is met by the Department.
Bonuses
Bonuses are based on performance levels attained
and are made as part of the appraisal process.
Bonuses relate to the performance in the year in
which they become payable to the individual. The
bonuses reported in 2012-13 relate to performance
in 2012-13 and the comparative bonuses reported for
2011-12 relate to the performance in 2011-12.
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PENSION ENTITLEMENTS (Audited Information)
Board Member Accrued Real CETV at CETV at Real
pension at increase in 31/3/13 31/3/12* increase
age 65 as pension at in CETV
at 31/3/13 age 65
£’000 £’000 £’000 £’000 £’000
Sue McAllister
Director General 0-5 0-2.5 21 0 16
Colin McConnell
Director General 35-40 plus 0-2.5 plus 695 691 1
lump sum of lump sum
115-120 of 0-2.5
Max Murray
Director of Offender Sercives 35-40 plus 0-2.5 plus 873 813 13
lump sum of lump sum of
110-115 0-2.5
Ronnie Armour
Director of Human Resources 20-25 plus 0-2.5 plus 388 336 31
and Organisational Development lump sum of lump sum of
70-75 5-7.25
Joanne McBurney
Director of Finance and Corporate Services 15-20 plus 2.5-5 plus 259 206 43
lump sum of lump sum of
50-55 7.25-10
Gary Boyd
Acting Director of Finance, Planning 20-25 plus 0-2.5 288 265 19
and Corporate Compliance
lump sum
of 0
Pat Maguire
Acting Director of Offender Services 30-35 plus 0-2.5 plus 608 553 25
lump sum lump sum
of 95-100 of 2.5-5
* The factors used to calcutate the CETV have changed. This means that the CETV figures in this years report for
31/03/12 will not be the same as the corresponding figure show in last years report.
No pension benefits are provided to the independent Board members and the Corporate Change Manager.
40

2012-2013
Pensions
Pension benefits are provided through the NICS
pension arrangements which are administered by
Civil Service Pensions (CSP). Staff in post prior to
30 July 2007 may be in one of three statutory based
‘final salary’ defined benefit arrangements (classic,
premium, and classic plus). These arrangements
are unfunded with the cost of benefits met by
monies voted by Parliament each year. From April
2011 pensions payable under classic, premium,
and classic plus are increased annually in line with
changes in the Consumer Prices Index (CPI). Prior to
2011, pensions were increased in line with changes
in the Retail Prices Index (RPI). New entrants
joining on or after 1 October 2002 and before 30
July 2007 could choose between membership of
premium or joining a good quality ‘money purchase’
stakeholder arrangement with a significant employer
contribution (partnership pension account). New
entrants joining on or after 30 July 2007 are eligible
for membership of the nuvos arrangement or they
can opt for a partnership pension account. Nuvos
is a ‘Career Average Revalued Earnings’ (CARE)
arrangement in which members accrue pension
benefits at a percentage rate of annual pensionable
earnings throughout the period of scheme
membership. The current rate is 2.3%. CARE pension
benefits are increased annually in line with increases
in the CPI. For 2013, public service pensions will be
increased by 2.2% with effect from 8 April 2013.
Employee contributions are determined by the level
of pensionable earnings. The current rates are as
follows:
Members of classic:
Annual New 2013
pensionable
contribution
earnings (full-time
rate before
equivalent basis)
tax relief
Up to £15,000 1.50%
£15,001-£21,000 2.70%
£21,001-£30,000 3.88%
£30,001-£50,000 4.67%
£50,001-£60,000 5.46%
Over £60,000 6.25%
Members of premium, nuvos and classic plus:
Annual New 2013
pensionable
contribution
earnings (full-time
rate before
equivalent basis)
tax relief
Up to £15,000 3.50%
£15,001-£21,000 4.70%
£21,001-£30,000 5.88%
£30,001-£50,000 6.67%
£50,001-£60,000 7.46%
Over £60,000 8.25%
Benefits in classic accrue at the rate of 1/80th
of pensionable salary for each year of service. In
addition, a lump sum equivalent to three years’
pension is payable on retirement. For premium,
benefits accrue at the rate of 1/60th of final
pensionable earnings for each year of service.
Unlike classic, there is no automatic lump sum
(but members may give up (commute) some of
their pension to provide a lump sum). Classic plus
is essentially a variation of premium, but with
benefits in respect of service before 1 October 2002
calculated broadly as per classic.
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The partnership pension account is a stakeholder
pension arrangement. The employer makes a basic
contribution of between 3% and 12.5% (depending
on the age of the member) into a stakeholder
pension product chosen by the employee. The
employee does not have to contribute but where
they do make contributions, the employer will
match these up to a limit of 3% of pensionable
salary (in addition to the employer’s basic
contribution). Employers also contribute a further
0.8% of pensionable salary to cover the cost of
centrally-provided risk benefit cover (death in
service and ill health retirement).
The accrued pension quoted is the pension the
member is entitled to receive when they reach
pension age, or immediately on ceasing to be an
active member of the scheme if they are at or
over pension age. Pension age is 60 for members
of classic, premium, and classic plus and 65 for
members of nuvos. Further details about the CSP
arrangements can be found at the website www.
dfpni.gov.uk/civilservicepensions-ni.
The CETV figures, and from 2003-04 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. They also include any additional
pension benefit accrued to the member as a result
of their purchasing additional years of pension
service in the scheme at their own cost. CETVs are
calculated in accordance with The Occupational
Pension Schemes (Transfer Values) (Amendment)
Regulations and do not take account of any actual
or potential benefits resulting from Lifetime
Allowance Tax which may be due when pension
benefits are taken.
Real increase in CETV
This reflects the increase in CETV effectively funded
by the employer. It does not include the increase
in accrued pension due to inflation, 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 end of the period.
Cash Equivalent Transfer Values
A Cash Equivalent Transfer Value (CETV) is the
actuarially assessed capitalised value of the
pension scheme benefits accrued by a member at
a particular point in time. The benefits valued are
the member’s accrued benefits and any contingent
spouse’s pension payable from the scheme. 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 figures
shown relate 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.
Compensation For Loss Of Office
There were no compensation benefits paid to any
current or previous member of PSMB during the
financial year 2012-13.
Sue McAllister
Director General & Accounting Officer
18 June 2013
42

2012-2013
Operating Review
STRUCTURE AND LOCATION
The Northern Ireland Prison Service currently has
a central administrative Headquarters, located
on the Stormont Estate; three main operational
establishments; and a staff training facility, the
Prison Service College, at Millisle, Co Down. It is
planned that the Service’s future training function
will form part of the combined Police, Prison Service
and Fire & Rescue College at Desertcreat when it is
completed in 2015.
Our three operational establishments are:
Prison Service Outline Estate Strategy
The Prison Service draft Outline Estate Strategy,
which was published for consultation in 2012,
sets out the proposals for the prison estate for the
next ten years. The strategy aims to develop the
prison estate to create an appropriate physical
environment to support rehabilitation work with
offenders. This includes addressing deteriorating
facilities and infrastructure and enhancing
rehabilitative opportunities by providing large
scale, sustainable links to the community and to
employment placements, which have potential for
further development.
• Maghaberry Prison – a high security prison,
housing adult male long-term sentenced
and remand prisoners in both integrated and
separated conditions. Maghaberry also has
responsibility for the Prisoner Assessment Unit
(PAU) in Belfast which is a facility for selected
and suitably risk-assessed prisoners who are
nearing the end of their sentence. The PAU was
temporarily suspended in 2011 and the outline
Estate Strategy includes proposals for how it
might be reconfigured as a working out unit.
• Magilligan Prison – a medium security prison,
housing shorter term sentenced adult male
prisoners. This establishment also has low
security accommodation for selected prisoners
nearing the end of their sentence.
The responses to the consultation have now been
evaluated and the Estate Strategy is currently being
finalised. The Minister of Justice has confirmed his
commitment to:
• the reconfiguration of Hydebank Wood as a
secure college;
• the provision of a separate, dedicated facility for
women offenders which provides both custodial
and community services;
• the reconfiguration of Maghaberry prison,
including the development of a new
accommodation block and high security facility;
• the development of a working out unit on the
site of the former prisoner assessment unit; and
• the phased redevelopment of Magilligan Prison
on the existing prison site.
• Hydebank Wood – a medium to low security
establishment accommodating male remand and
sentenced young offenders between the ages of
18 and 21 and all female prisoners. All juvenile
offenders are now located at Woodlands, Juvenile
Justice Centre.
Development of the prison estate is an opportunity
to create an environment which will support
rehabilitation, reduce risk, and enhance public safety.
It will also provide accommodation that is fit for
purpose; delivers increased flexibility; and provides
value for money.
43

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and Accounts
BUSINESS REVIEW
Strategy, Objectives and Targets
Strategy
The 2012-13 reporting year has been dominated
by the continuation of the four-year programme
of reform for NIPS. The reforms underway were
based on the findings of the PRT and a pathway was
established in the 2011-15 NIPS Corporate Plan.
The Corporate Plan emphasised the need to have a
culture of continuous improvement, while ensuring
safe, secure, and decent custody. This has been
taken forward in conjunction with a programme of
fundamental reform, through the SEE Programme,
which will transform NIPS into a Service that:
• is well led and competently managed;
• has a fit, flexible and motivated, well-trained and
well-rewarded staff;
• is compact and cost-effective;
• has the offender at the centre of its focus;
• reduces the risk of offenders reoffending on
release; and
• is respected and valued by the community we
serve.
NIPS has defined its core purpose as being
to “improve public safety by reducing the
risk of reoffending through the management
and rehabilitation of offenders in custody.”
Underpinning this core purpose, NIPS has identified
three strategic aims, namely:
• Safe, decent and secure custody;
• Reform and modernise to create an effective and
efficient service; and
• Reduce the risk of reoffending.
Year Two of this four-year plan has been focused
largely on continuous improvement to ensure safe,
secure, and decent custody. The aim of year two,
as laid out in the 2011-15 NIPS Corporate Plan, is
to deliver structural change, as well as prepare for
cultural change, thereby establishing a basis upon
which lasting end-to-end reform can be realised.
Objectives
The 2012-13 Business Plan, established seven
delivery objectives and seven development
objectives for the Service.
The Service’s performance against these
development objectives, and KPTs is set out in
Chapter 1 of the Annual Report (see pages 9-19).
These are aimed at driving forward the end-to-end
reform programme and laying the foundations for a
cultural change throughout the service.
While the measurable objectives and targets set out
expected performance criteria for staff to complete,
NIPS also carried forward five key behaviours in
order to lay the groundwork for cultural change.
These are set out below:
1. Both prisoners and staff being at the right place
at the right time.
2. Maximising the number of prisoners attending
activities and working to a sentence plan, where
necessary.
3. Providing support and demonstrating a positive
role model to prisoners in our care.
4. Ensuring all records are complete, accurate, up to
date and that prompt remedial action is taken
when necessary.
5. Completing all necessary checks, reviews
and assessments with due care and to a high
standard.
44

2012-2013
DIVERSITY STRATEGY
NIPS accepts that the delivery of cultural change
within NIPS is central to addressing and ensuring a
diverse workforce reflective of the Society we serve.
In order to provide the best service to our customers
NIPS needs to attract and retain the best people
and to create a positive and inclusive working
environment where individual differences are valued
and respected.
The 2012 recruitment campaign attracted over
4900 applicants for the new Prison Custody Officer
Grade, 32% of whom were women and 25% were
from members of the Roman Catholic community.
At the time of reporting 309 applicants have been
appointed from the 2012 recruitment campaign
(31.4% female & 16.2% Roman Catholic).
NIPS recognised explaining what we do and the
reforms that are taking place would be essential
for any future recruitment drive by the Service.
We therefore sought to develop and deliver a
programme of community engagement that would
explain the various roles that exist within NIPS to
encourage applications from members of the underrepresented
community and promote a positive
image of the Prison Service as an equal opportunity
employer.
During the period of this report we have:
• developed links with all schools in Northern
Ireland - a programme of visits and events for
2013-2015 is currently being developed and will
be incorporated into an over-arching Community
Engagement Strategy;
• attended Career Fairs at University of Ulster,
Jordanstown and Queen’s University Belfast and
made contact with St Mary’s University Belfast
to discuss attendance at future Career Fairs. All
three Universities and the Metropolitan Colleges
carried our most recent recruitment literature on
their websites;
• hosted an information stand at the Northern
Ireland Schools and Colleges Association
(NISCA) Annual General Meeting and arranged
to have information on career opportunities
in NIPS presented to schools throughout the
province under the NISCA Experience of Work
programme. Presentations have been delivered to
approximately 20 schools since November 2012;
• met with All Party Ethnic Minorities Group to
encourage applicants from this community. This
was organised through NICEM. NIPS had an
information stand at NICEM AGM.
Contact was made with Roman Catholic Chaplains
in each of the Establishments to encourage
applicants from within the Roman Catholic
community.
• developed links with influential individuals,
community groups, voluntary organisations and
other agencies associated with particular groups
(Employers For Disability NI, Disability Action NI:
Cara-Friend; Rainbow; An Munia Tober; Chinese
Welfare Association; Skills for Justice; NI Council
for Ethnic Minorities; GAA; Training for Women
Network;);
Health & Wellbeing
During the period of this report NIPS and colleagues
in SET finalised the Health Improvement Strategy.
The two main recommendations made were: the
appointment of a health improvement project
worker, to which the Public Health Authority (PHA)
has agreed to fund a full time post for 3 years,
to take forward the action plan; and the setting
up of a multi-disciplinary Health Improvement
45

ANNUAL
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and Accounts
Group in each prison to establish a more cohesive
approach to health improvement. This group will
have responsibility for organising and running health
improvement events throughout the year.
The NIPS WGoMS, worked closely with the Health
and Safety Executive NI (HSENI) in the development
of a tailored training pack for delivery to the new
Custody Officers. A pilot of the stress awareness
training has been trialled to a number of officers and
finalisation of this material, in conjunction with the
HSE, is ongoing. It is also intended that this will be
delivered to existing officers as part of their upskilling
training package.
Throughout the year NIPS made available a range
of information on health and wellbeing issues
to raise staff awareness and to provide details of
alternative sources of information and services. In
addition, to mark World Suicide Prevention Day
a number of staff and prisoners attended seminars
entitled ‘Mood Matters for Adults’ which provided an
opportunity to learn about depression and recognise
the importance of self help strategies to improve
mood. The Samaritans were on the landings raising
awareness and providing information about the
Listener Scheme (where trained prisoners, supported
by the Samaritans, provide support for those
at risk of suicide or self-harm) within all prison
establishments.
National Stress Awareness Day was marked by a
series of staff awareness events in conjunction with
our employee assistance partner Carecall Solutions
which hosted information stands and delivered
presentations in various locations and we received
positive feedback following this.
Review of sickness absence procedures (Sickness
Absence Management)
The Northern Ireland Civil Service HR Handbook
Section on Inefficiency Sickness Absence provides a
framework for the effective management of sickness
absence and NIPS continue to apply this. Work
to reduce sickness absence across the Service is
ongoing. A review of the management of long term
sickness absence cases was conducted during the
year and this highlighted some issues of concern.
Work is underway to address these issues. Current
figures for 2012-13 can be found on Page 29 of the
Annual Report.
Energy / Environmental Projects
During the last twelve months the following
environmental improvements have been added to
the prison estate:
Solar Thermal Hot Water
This uses solar energy from the sun to pre-heat
water within the hot water system (Maghaberry)
using an array of solar panels.
Air Source Heat Pump
This uses warm air that would otherwise be expelled
from a buildings air-conditioning units to heat water
within the hot water system (Maghaberry).
Rainwater Harvesting
A new underground tank has been installed to store
rainwater which is then used to flush toilets. This
will save around 700 m³ of water per year.
Water Saving Devices
Nearly 200 new wash-hand basins have been
installed during the year with timed push button
controls. The controls allow the overall flow of
water to be managed to limit the amount of water
consumption.
46

2012-2013
Re-circulate warm air
Warm air naturally rises. To reduce the heat load
needed within the new buildings low energy
destratification fans have been installed at high level
to push warm air back to lower levels, reducing the
overall need for heat energy.
Magilligan, H2 – Older Prisoner Unit
A range of improvements have been made to this
H-block in response to disability access surveys
undertaken during 2012. The block houses a more
elderly population and the existing ablution areas
have been refurbished by the creation of a wet room
with new showers, larger WC cubicles, and new
sanitary ware, including associated hand and grab
rails.
Magilligan, 800 bed prison - Redevelopment
A re-evaluation of the options to replace the
existing temporary structures at the site (some
of which date from a time when it was used as a
prisoner of war camp during World War II) with a
modern 600 cell prison was completed during the
year to inform the Ministers decision on the future
of the site. Following the announcement by the
Minister that Magilligan will be retained, work will
now progress on the development of a fully costed
business case for consideration.
Social and Community Policy and Performance
In working towards its purpose of protecting the
public by reducing the risk of re-offending, the
Prison Service places considerable emphasis on
its civic role and its position in the wider criminal
justice system. As such, NIPS works to promote
wider understanding and contribute to greater
confidence in the criminal justice system.
NIPS are continuing to implement the
recommendations published in the PRT report in
October 2011. In order to create a safer society,
NIPS in collaboration with others, are working to
engage with prisoners to encourage desistence from
crime, and support rehabilitation.
Looking Forward
Looking forward, the 2013-14 business year is the
third of the four year plan mapped out in the NIPS’
2011-15 Corporate Plan. In terms of strategic
direction, NIPS’ focus throughout 2013-14 will be
on delivering cultural change.
NIPS will continue to embrace the programme
of end-to-end reform as set out in the
recommendations of the PRT report. Significant
progress has been made to date in the
implementation of these recommendations, and
NIPS looks forward to embedding these successes in
the coming year.
Our plans for the year ahead continue to be
informed by the Executive’s overarching priorities in
the Programme for Government (PfG), as well as by
the aforementioned recommendations made by the
PRT.
The PRT report emphasised that responsibility
for reform of the Prison Service extended beyond
NIPS and the DOJ, with one recommendation on
the development of a Safer Society Strategy being
directed at the Executive as a whole, and a number
of recommendations relating to prisoner healthcare
falling largely to the DHSSPS. In the year ahead NIPS
will continue to work closely with DOJ and other
partners in implementing those cross-cutting PRT
recommendations, as well as taking forward delivery
of those recommendations which were directed
specifically at NIPS.
In order to achieve our stated aim of delivering
cultural change, NIPS has identified 13 targets and
29 actions for 2013-14. These are summarised in
the table overleaf.
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ANNUAL
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and Accounts
Target
Action
To provide staff with the training required to enable
them to discharge their roles effectively.
To have established training priorities for each
operational area commensurate with the
establishments business and corporate objectives.
Implement a job evaluation scheme for unified
grades.
Develop a suitable evaluation scheme to recognise
and reflect their roles.
Raise stakeholder awareness and increase buy in.
Run themed stakeholder events with interested
parties.
Combined stakeholder publication developed for
summer 2013.
To introduce a regime focused on reducing
reoffending and develop a suitable regime strategy
and measure effectiveness.
To publish an Employability Strategy during
2013/14.
To develop a revised offender management policy
and standards by 31 March 2014.
To have completed detailed baseline and benchmark
analysis to define NIPS requirements for inclusion in
a needs analysis options paper by 30 June 2013.
To develop a NIPS approach to implementation
of Prison Review Team recommendation 33 by 31
March 2014.
To award a contract for the provision of a Learning
and Skills service by 31 March 2014.
To launch the certificate of competence
accreditation process by December 2013.
Gain accreditation for training programme to
recognise professionalism.
Evaluation of the generic programme will take place
post course and second and third level evaluation
will assess to what extent the learning improved
core service delivery.
Deliver & evaluate a training programme to
introduce the new professional role for prison
officers.
48

2012-2013
Target
Finalise Estate Strategy and implement elements
planned for 13/14.
Action
Complete Outline Business cases for
- Maghaberry - new accommodation block
(summer 2013);
- Maghaberry - New visits (end 2013);
- Working Out Unit - interim facility (end 2013);
- High Security Facility (end 2013)
- Magilligan - redevelopment (March 2014).
Complete Strategic Outline Case for
- Secure college (end 2013);
- Women’s facility (Autumn 2013).
To embed robust financial management and
accountability in NIPS.
To embed the revised Corporate Governance
Framework.
Quarterly meetings of the Audit and Risk
Committee.
Business cases completed and evaulated in
accordance with Northern Ireland Guide to
Expenditure Appraisal and Evaluation (NIGEAE).
Ensure procurement is conducted in line with the
relevant DOJ/DFP guidance.
Robust contract management and Service Level
Agreement (SLA) accountability monitoring in place
with service providers.
To have confirmed classification of the three ALB’s.
Classification of Prison Service Trust, Northern
Ireland Prison Service Sports Association (NIPSSA)
and Central Benevolent Fund (CBF) agreed with DFP.
Appropriate funding arrangements put in place.
No overspend - under spend less than 2% of budget.
Monthly monitoring of forecast and actual
expenditure.
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ANNUAL
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Target
To provide an environment in which fosters mutual
respect between prisoners and staff and prisoners.
Action
Ensure timely reporting of results from the Prisoner
Quality of Life Surveys to prisoners and staff in
order to highlight areas of concern.
Maintain a level of security proportionate to the
assessed risk.
Facilitate Ministerial forum on safer custody to
enhance outcomes for prisoners.
Revise substance misuse policy by Autumn 2013.
To aid in the full implementation of the SET
observed administration policy.
Re-publish Managing Anti-Social Behaviour policy
plan by August 2013.
Have a core day regime in place and prisoners have
the opportunity to avail of it.
Outsourcing of Learning and Skills by March 2014.
Fully embedding of TOM by Autumn 2013.
Delivery of core day to prisoners.
Information Risk Management
A working group has been established to ensure that the Service meets all its obligations in relation
to Information Assurance (IA). The working Group is led by the current Senior Information Risk Owner
(SIRO) and includes members of staff from Information Technology, Security, and Records and Information
Management. Work is ongoing on a number of fronts, including a review of the IA function and how best NIPS
should reorganise to meet demands. There was one reportable data protection breach during 2012-13. The
Information Commissioner’s Office is currently assessing the facts of the case.
Summary Of Protected Personal Data Related Incidents Formally Reported To The Information
Commissioner’s Office (ICO) In 2012-13
Date of Incident Nature of Nature of Data Number of People Notification
(month) Incident Involved Potentially Affected Steps
October NIPS file handed Personal and other 30 – 40 ICO notified
in by member of
using official
the public
reporting form.
50
Further action on
Information Risk
A continuing programme of improvement to Information Assurance is underway,
including the establishment of a dedicated lead and formal organisational structure.

2012-2013
Summary Of Other Protected Personal Data Related Incidents In 2012-13
Incidents deemed by the Data Controller not to fall within the criteria for report to the Information
Commissioner’s Office but recorded centrally within the Department are set out in the table below.
Small, localised incidents are not recorded centrally and are not cited in these figures.
Category Nature of Incident Total
I Loss of inadequately protected electronic equipment, devices 0
or paper documents from secured Government premises
II Loss of inadequately protected electronic equipment, devices 0
or paper documents from outside secured Government premises
III Insecure disposal of inadequately protected electronic 1
equipment, devices or paper documents
IV Unauthorised disclosure 0
V Other - document misfiled on the internal IT system, 0
minor incident only
Regulatory Risk
During 2012 -13 NIPS was responsible for the general regulation and control of prisons in Northern Ireland,
under the delegated authority of the Minister of Justice as prescribed in the Northern Ireland Act 1998
(Devolution of Policing and Justice Functions) Order 2010.
The Service operates within a regulatory framework of statutory and non-statutory measures. The statutory
or legislative element of this framework is principally served by The Prison Act (Northern Ireland) 1953 and
the Prison and Young Offenders Centres Rules (NI) 1995, as amended. The non-statutory element of this
framework is the development and provision of specific strategies and policies relating to the management
of all individuals in our care. In accordance with the general legislative arrangements in Northern Ireland, the
Service’s policies are, where necessary, developed through an open, consultative and inclusive process, allied
to an integrated system of impact assessment and appraisal tools which are used to determine the response
needed to each of the issues identified.
The management of specific regulatory risk within the Service’s operating framework rests with PSMB.
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Health and Safety Risk
NIPS continues to monitor its compliance with a wide range of relevant Health and Safety legislation. This
includes Corporate and Establishment health and safety related policies, the resourcing of local health and
safety units and identification of appropriate training for staff. There is also the provision of an annual Health
and Safety Report covering relevant matters along with quarterly updates provided to the Senior Management
Team.
The Service takes its ‘duty of care’ to inmates, officers, officials, contractors and visitors very seriously. It
continues to review its related policies and procedures on a regular basis in relation to a variety of important
health and safety issues. The Corporate Manslaughter legislation is now fully in force with the inclusion of the
“death in custody” aspect in September 2012. The Service will ensure that it meets all relevant compliance
issues in relation to this matter.
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2012-2013
Statement Of Accounting Officer’s Responsibilities
Under section 11(2) of the Government Resources
and Accounts Act (Northern Ireland) 2001, DFP has
directed NIPS 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 NIPS and of
its income and expenditure, changes in taxpayer’s
equity and cash flows for the financial year.
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 NIPS’ assets, are set out
in the Accounting Officer’s Memorandum, issued
by DFP and published in Managing Public Money
Northern Ireland.
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 DFP,
including the relevant accounting and disclosure
requirements, and apply suitable accounting
policies on a consistent basis;
• make judgements 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 Accounting Officer of DOJ has designated the
Director General of NIPS as Accounting Officer for
the year of account.
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Governance Statement
DIRECTOR GENERAL INTRODUCTION AND
SCOPE OF RESPONSIBILITY
I was appointed Accounting Officer on 3 July 2012
following the departure of Colin McConnell in May
2012. As Accounting Officer, I have responsibility
for maintaining a robust system of internal control
that supports the achievement of Northern
Ireland Prison Service (NIPS) policies, and aims and
objectives, whilst safeguarding the public funds
and Departmental assets for which I am personally
responsible. As Accounting Officer, I have put
in place robust governance arrangements which
comply with the relevant sections of the Corporate
Governance Code (2005). Any deviations are noted
later in this document. The vision, statement of
purpose, and strategic aims of NIPS, including how
these support the wider aims of the Department
of Justice (DOJ), are set out at the beginning of
the Annual Report. I am confident that I have put
in place governance arrangements to ensure that
decisions are made at the right time, in the right
place, by the right people.
I am responsible for the effective, efficient, and
economic use of resources provided to the Service;
for the regularity and propriety of its expenditure;
and for ensuring that the requirements of Managing
Public Money (Northern Ireland) are met. I
am supported in this role by the Prison Service
Management Board (PSMB) and its subcommittees
who can quickly identify emerging risks and put
actions in place to manage them. In carrying out
these responsibilities I regularly brief the Minister
both orally and in writing, as appropriate, to alert
him to emerging issues of substance and the
associated risks involved.
As Accounting Officer for NIPS and a member of the
DOJ Departmental Board, I am held to account by
the Departmental Accounting Officer (Chair of the
Departmental Board). This takes the form of regular
reports to DOJ, and the Minister of Justice, as well as
regular bi-lateral discussions with the Departmental
Accounting Officer.
This statement sets out in more detail how NIPS
have continued to develop its governance structure
following a review of the Corporate Governance
Framework and how risks have been reviewed to
ensure that we maintain our focus on the areas
that are most likely to prevent us from achieving
our objectives. I am confident that NIPS has
the governance, risk management and assurance
arrangements in place to ensure that it can rise to
challenges effectively.
PURPOSE OF THE GOVERNANCE FRAMEWORK
The governance framework is the system by which
NIPS is directed, controlled and led. The purpose
of the framework is to define relationships and
structures and the way in which these are managed
to ensure resources are used responsibly, to manage
risks and to provide strategic direction within NIPS.
The governance framework is designed to manage
risk to a reasonable level rather than to eliminate all
risk. The framework is based on an ongoing process
designed to identify and prioritise the risks to the
achievement of service-wide and departmental
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.
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2012-2013
GOVERNANCE FRAMEWORK
Prison Service Management Board
The Director General is the principal adviser to the
Minister of Justice on policy matters relating to
the Prison Service and is directly accountable to
the Minister for the Prison Service’s performance.
Authority has been delegated on financial and
personnel issues, and the Director General is
supported by PSMB. As Accounting Officer, the
Director General is responsible for maintaining a
robust system of internal control to support the
objectives of the Service.
The role of the PSMB is to support the Director
General in the running of the Service. PSMB brings
together the strategic and operational leadership of
NIPS. The Board is chaired by the Director General
and consists of three Executive Directors, three
Non-Executive Directors, and the Change Manager
for the Strategic Efficiency and Effectiveness (SEE)
Programme.
PSMB is the top management structure for NIPS and
is responsible for the establishment and monitoring
of the corporate governance arrangements of the
Service. Under the general guidance and direction
of the Minister and the Permanent Secretary of the
DOJ, the Board’s main role is to: provide advice to
the Director General; to lead on the development
and scrutinise implementation of policy and
strategy, challenge decisions made by the Executive
Team; monitor NIPS performance; and to provide
overall assurance to the Director General on NIPS’
affairs.
Among the matters considered by the Board in the
2012-13 financial year were:
• the strategic direction of the Service within the
framework set by the Minister and the DOJ,
including its aim, vision, values and strategic
objectives;
• a review of the corporate governance framework
being implemented in the Service that complies
with the Framework Agreement in place with the
DOJ;
• the continued implementation of the SEE
Programme which is implementing the
recommendations set forth in the Prison Review
Team (PRT) report;
• NIPS risk appetite and revised Risk Management
guidance to ensure controls are in place to
manage risk;
• the operational business plan and financial
strategy to ensure delivery of business plan
targets and budgets. This includes NIPS
contribution to the Executive’s Programme for
Government and DOJ corporate targets; and
• the continued implementation of the Voluntary
Early Retirement (VER) scheme and the
recruitment of new custody officers.
Audit and Risk Committee
The Audit and Risk Committee (ARC) is appointed
by the Board as a formally constituted Sub
Committee to support the Director General as
Accounting Officer in monitoring the corporate
governance and control systems (including financial
reporting) within NIPS. The primary function of
the ARC is to test and challenge the assurances
which the Board and the Accounting Officer have
identified as meeting their assurance needs, the
way in which these assurances are developed and
the management priorities and approaches on
which the assurances are premised. In addition,
ARC ensure that external audit recommendations
are implemented by reviewing the actions taken by
management in response to these. The ARC, chaired
by Paul Leighton (Non-Executive Director), met four
times throughout the year, and provided an Annual
Report of its activities to PSMB for consideration.
The Committee consists of two Non-Executive
Directors, and one Finance Director from the wider
public sector who joined the Committee as of April
2013.
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56
Internal Audit reviewed several areas throughout the
year including, NIPS’ transition to Account NI and
a review of Contract Management practices. There
were no high priority recommendations made to
NIPS during the 2012-13 year. NIPS’ did receive
several medium and low priority recommendations
which are currently being implemented. The Head
of Internal Audit provides independent assurance
through reports to ARC and meetings with the
Accounting Officer.
Standing items considered by the Committee
include a review of significant changes to the
Corporate Risk Register, as well as a review of the
NIPS Fraud Log. ARC ensures that the controls
in place adequately cover the risk identified by
management. Likewise, ARC provides oversight of
fraud investigations to ensure any incidents are
dealt with effectively. Other matters considered by
the ARC and reported to the Board in the 2012-13
financial year were:
• the strategic processes for risk, control and
governance, and the Governance Statement;
• the accounting policies, the accounts and the
annual report of the Service, including the
process for review of the accounts prior to
submission for audit, levels of error identified,
and management’s letter of representation to
the external auditors;
• the planned activity and results of both internal
and external audit;
• the adequacy of management response to issues
identified by audit activity, including external
audit’s management letter; and
• assurances relating to the corporate governance
requirements for the Service.
Operational Management Board
The role of the Operational Management Board
(OMB) is to ensure that the policies and procedures
approved by the PSMB are implemented in
establishments and monitored, and that assurance
is provided to PSMB regarding progress made and
actions taken. Assurance is provided to PSMB in the
form of stewardship statements completed by all
Executive Directors and Governing Governors. In
addition, issues may be raised at OMB which are
escalated to PSMB, including risks arising throughout
the year as well as operational failures. The Board
is chaired by the Director General with membership
including the three Governing Governors, and the
Director of Offender Services. The Board’s remit is
to operationalise policy agreed by PSMB and identify
potential risks that may arise in doing so. Their role
is also to support the development of performance
management and business reporting arrangements
to improve the level of service provided to prisoners.
Strategic Efficiency and Effectiveness
Programme Board
The SEE Programme Board oversees the
implementation of the PRT recommendations
relating to NIPS. The role of the SEE Programme
Board is to:
• develop the programme plan, identifying and
prioritising the workstreams and individual
projects which form part of the programme plan,
and the anticipated high level benefits, risks
and interdependencies between projects and
workstreams;
• review and approve the commencement of
workstreams and their associated detailed plans
and activities;
• assign responsibility for the delivery of
workstreams to accountable officers in
accordance with the programme’s governance
and accountability framework;
• authorise the commitment of resources to
workstreams and individual work packages; and
• provide a central focus point for transferring
and sharing expertise and skills which maximise
benefits on a corporate basis, realise synergies
and add value for the organisation overall.

2012-2013
In line with a recent Gateway Review of the NIPS
Reform Programme, the SEE Programme Board is
scheduled to be replaced by an over-arching NIPS
Reform Programme Governance Board, which will
be chaired by the Director General, with effect from
July 2013.
Finance Committee
The PSMB agreed at its meeting in March 2012 that
the Finance Sub Committee should no longer be
a formal Sub Committee of the Board but instead
become an Executive Committee chaired by the
Director of Finance and Corporate Services. The
purpose of the Finance Committee (FC) is to discuss
and scrutinise key strategic finance plans and
financial issues impacting on NIPS and to provide
assurance on their robustness before they are
adopted by the Director of Finance and Corporate
Services, or presented for endorsement to the PSMB
or Accounting Officer for endorsement. Among the
matters considered by the Committee during the
2012-13 year were:
• review and challenge capital proposals and
priorities from the Minor Works Steering Group
and agree adjustments as necessary within
affordability constraints;
• test the robustness of strategic financial advice
and financial policies and procedures to be issued
from the Finance Directorate in advance of
formal adoption and promulgation;
• oversee progress on finance projects which are
of significant strategic importance and which
impact on NIPS’ ability to meet its targets;
• improve financial planning, monitoring and
reporting within NIPS and its arms length bodies;
and
• to review and scrutinise management
responses to the ‘Report to Those Charged with
Governance’ and make recommendations to the
ARC and PSMB as necessary.
External Bodies
There are a number of external bodies which provide
assurance to the Board, including:
• CJINI, which provides independent inspections of
NIPS to ensure best practice;
• the Prisoner Ombudsman, which investigates
complaints from prisoners, complaints from
visitors, and deaths in Prison Service custody;
• Her Majesty’s Inspectorate of Prisons, which
carries out inspections in conjunction with CJINI;
• the Independent Monitoring Boards, which
monitor quality of prison life, by working to
ensure fairness and accountability in prison; and,
• Northern Ireland Audit Office, which provides
financial and value for money audits of NIPS.
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Attendance Records
The attendance record for each of the Prison Service Committees are detailed below:
Title PSMB ARC OMB SEE Finance
Programme Committee
Board
Director General – Sue McAllister 8/8 N/A 11/12 5/6 N/A
Director of Offender Services
– Max Murray 9/11 N/A 7/12 5/6 2/4
Director of Finance & Corporate Services
– Joanne McBurney 5/5 N/A N/A 5/6 4/4
Director of HR and Organisational
Development – Ronnie Armour 10/11 N/A N/A 5/6 3/4
Change Manager (SEE Programme)
– Mark Adam 7/8 N/A N/A 5/6 N/A
Non-Executive Director – Phil Wheatley 10/11 N/A N/A N/A N/A
Non-Executive Director – Patricia Gordon 8/11 4/4 N/A N/A N/A
Non-Executive Director – Paul Leighton 9/11 4/4 N/A N/A N/A
Governor of Maghaberry N/A N/A 9/12 7/8 N/A
Governor of Magilligan N/A N/A 12/12 7/8 N/A
Governor of Hydebank Wood
Young Offenders Centre and Prison N/A N/A 11/12 7/8 N/A
SEE Programme Manager N/A N/A N/A 7/8 N/A
NIPS Head of Financial Planning N/A N/A N/A 2/2 4/4
NIPS Head of Press Office N/A N/A N/A 4/6 N/A
NIPS Head of Internal Communications N/A N/A N/A 1/2 N/A
Head of Financial Accounting N/A N/A N/A N/A 4/4
Head of Estates Management N/A N/A N/A N/A 4/4
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2012-2013
The diagram below provides a graphical representation of the Governance Structures within NIPS.
SEE
Programme
Board
Reports directly to
PSMB on expenditure
Finance
Committee
Reports to PSMB on PRT
recommendation progress
PSMB
Reports to PSMB on
operational matters
PSMB provides strategic
direction to OMB
Reports directly to
PSMB on risk and audit
recommendations
OMB
ARC
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60
RISK MANAGEMENT AND INTERNAL CONTROL
Risk management forms a central element of the
department’s internal control framework. Risks are
managed at the level most able to deal with them,
with the most serious being escalated to PSMB.
During 2012-13 corporate risks were identified,
assessed, addressed and reviewed. Each directorate,
establishment, and branch has their own risk register
which is continually under review and formally
updated quarterly.
Risk management is also embedded within the
business planning process and staff are trained
and equipped to manage risk in a way appropriate
to their authority and duties. PSMB approved
an updated Risk Appetite and Risk Management
guidance document in March.
The ongoing revision of the Corporate Governance
Framework sets out the structures and arrangements
to ensure that risk and planning decisions are
appropriately identified evaluated and controlled.
This framework describes the terms of reference for
PSMB, OMB, and ARC. By doing so, it ensures that
the allocation of risk oversight is well documented
and clear at all levels of the organisation. The NIPS
Risk Management guidance document, which aligns
with the relevant DFP guidance, establishes in more
detail what is required of staff and the varying levels
of oversight responsibility throughout the Service.
Controls in place to monitor risk are set out below:
• PSMB reviews and evaluates corporate level
risk registers. In addition, the Board provides
oversight to the corporate and business planning
process by assessing and reviewing objectives
and key performance targets established for the
Service.
• ARC, which is chaired by a Non-Executive
Director, met four times during the 2012-13
financial year. The ARC reviewed Board-level
risks, as well as instances of fraud, and provided
assurance to PSMB and the Accounting Officer
throughout the year.
• Heads of Branch, and the Heads of Management
Support Services in establishments, conduct risk
management assessments in all areas of activity
and review their local risk registers on a quarterly
basis.
• Project risks are identified and managed by
respective Project or Programme Managers
and are reviewed by the relevant Project or
Programme Boards.
• South Eastern Health and Social Care Trust (SET)
has lead responsibility for prisoner healthcare. A
Regional NIPS Corporate Governance Committee,
chaired by the Director of the SET and reporting
to the Trust’s Governance Committee, has been
operated throughout the year.
• The Service has used the Gateway Review
process to assist in the management of risk on
the ongoing reform programme.
• The Service measures and reports compliance
with departmental guidance on the use of
consultants to the ARC.
• An up-to-date register is in place to record
conflicts of interest.
• The Service has a procurement policy in place.
NIPS officials attend the DOJ Procurement
Forum and the DOJ Procurement Board.
The aforementioned methods to monitor risk
have proved effective in identifying risks quickly as
they arise throughout the year. This can be seen
through the regular updating of the risk register
and the speed with which actions are put in place
to mitigate these risks. NIPS conducted a review
of its Risk Appetite which was approved by PSMB
in February. This document detailed the tolerance
for risk which NIPS has allowed in various business
areas. This includes having a high risk appetite
for policy related areas, as well as some elements
of Human Resources. In contrast, other Human
Resource elements, such as recruitment or equality,

2012-2013
attract a low risk appetite. This document allows
tolerance for risk to be tailored across different
business areas in order that appropriate policies
may be followed, and mitigation of risks to be
customized.
NIPS identified two risks throughout the year which
were added to the Corporate Risk Register. Once
identified, steps were taken to ensure that the
controls in place adequately covered these risks.
The first risk identified was the potential of a rapid
increase of the prisoner population should potential
protests against the G8 conference in Enniskillen
lead to a large number of arrests. Contingency plans
are in place to provide alternative accommodation
and steps have been put in place to ensure suitable
staffing levels. The second risk identified was the
potential failure to deliver a predictable regime for
prisoners. The completion of the VER scheme and
the recruitment of new staff should enable the
continued implementation of the TOM, thereby
allowing for the delivery of a predictable regime.
Another key element of these risk management
arrangements is the professionally-led Internal Audit
function that works to Government Internal Audit
Standards, reviewing the overall arrangements for
managing risk. Internal Audit provides independent
assurance to the Accounting Officer through reports
and briefings at the ARC throughout the year.
Other governance structures and functions that
support information risk management include: a
Security Officer, Human Rights Manager, Equality
Manager, HR Equality and Diversity Manager and a
Records and Information Unit.
Information Assurance
NIPS has fully embraced the DOJ’s Information
Assurance policy and procedures and is represented
at Director level on the DOJ Information Risk
Owners Council (IROC) which comprises senior
business owners across the departmental family
and holds them to account for the ownership
and management of information assurance risks
within their respective business areas. In line with
IROC requirements, NIPS has its own Information
Assurance Group, chaired by the Director of Finance
and Corporate Services who is also the SIRO for
NIPS. This group has been established to oversee
the delivery of the Information Assurance policy and
procedures and to implement the Security Policy
Framework. The NIPS offices’ supported IT systems
are regularly accredited by the DOJ Accreditation
Authority Panel.
REVIEW OF EFFECTIVENESS OF THE
GOVERNANCE FRAMEWORK
In December 2010 CJINI issued its report into
Corporate Governance arrangements in NIPS. In
light of the imminent publication of the PRT final
report, the observations of CJINI were incorporated
into the 40 PRT recommendations. The Service
has accepted these findings and recognised the
importance of addressing the issues raised in order
to transform NIPS into a model of good practice.
NIPS has taken forward a number of key actions
since the publication of the recommendations in
order to enhance and strengthen existing corporate
governance arrangements. These include:
• clarification of the role of the Board and Board
members;
• roles and responsibility of the Executive
Management Team;
• definition of the assurance framework operating
between the Board and its Committees, the
Board and the Executive Management Team and
the Board and Arms Length Bodies funded by
NIPS;
• revised business planning processes;
• revisions to the performance information
provided to the Board;
• review of risk management processes and
business controls;
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• external reporting requirements;
• creation of a Compliance Audit Branch;
• creation of a database of outstanding
recommendations;
• creation of a professional standards unit; and
• review of the governance arrangements between
NIPS and DHSSPS – a new management
structure has now been put in place that
addresses these governance arrangements.
The Corporate Governance Framework is continuing
to be reviewed, as well as the business continuity
plan to ensure the most up to date guidance is
being provided to staff.
The review of the effectiveness of the Governance
Framework is informed by the work of the internal
auditors, as well as executive managers within the
Service who have responsibility for the development
and management of the internal control framework,
and comments made by the external auditors in
their Report To Those Charged With Governance
and other reports. The continued review of
the Corporate Governance Framework helps
ensure that NIPS is brought into line with CJINI
recommendations, and best practice.
The Director General has established and formalised
the following governance structures and processes
to maintain and review the effectiveness of the
governance framework:
• Key Performance Targets (KPTs) were set by the
Minister and performance against these was
reviewed by PSMB regularly.
• PSMB, which met monthly, monitored and
reviewed the key risks associated with the
Service’s ability to conduct its business.
• Weekly meetings of the Executive Directors were
held to discuss cross cutting risks.
• The OMB led by the Director General met
monthly to review operational risks.
• Mid-year and End-year stewardship statements
were completed by each of the Directors,
Governors-in-Charge and Heads of Branches.
• ARC provided an annual report of their work
throughout the year, highlighting key areas of
work undertaken, and providing assurance to the
Board.
• An Internal Audit Unit, operating to the
Government Internal Audit Standards, conducted
risk based audit assignments and reported the
outcome to the ARC regularly.
• The Northern Ireland Audit Office (NIAO)
conduct external audit services and provide
assurance in their Report to Those Charged with
Governance and in their audit certificate and
Audit Findings Report.
• The Finance Committee which has met on 4
occasions throughout the year. The Finance
Committee scrutinises key strategic finance plans
including business cases and other financial risks
impacting on NIPS and provides assurance on
their robustness before their adoption.
In addition, PSMB completed a National Audit
Office (NAO) Board questionnaire to evaluate
their effectiveness. Responses showed that Board
members were generally content with their
effectiveness throughout the year; however, noted
that more could be done to consider organisational
performance in comparison to similar agencies,
in order to share good practice and import
learning. Likewise, while the addition to ARC of
an independent financially qualified member will
increase the oversight ability of this Committee,
there are still some areas where Board members see
room for improvement, such as in the current lack
of an action plan to ensure that issues raised during
the Board’s evaluation are acted on quickly. PSMB
members are scheduled to meet in July in order to
address ways in which identified deficiencies may be
corrected.
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2012-2013
Board members were asked to comment on the
quality and type of information they received in
PSMB meetings in the NAO questionnaire. Board
members were largely content with the information
provided to them and the updates on the progress
made against the targets and objectives for the
Service. These include monthly performance
management measures and financial information.
It was felt that the information provided enabled
members to gain an overview of the work being
carried out within NIPS while allowing them
to keep a strategic distance from the everyday
details. However, it was noted that the strategic
consequences of the information may not always be
realised by staff. The aforementioned July meeting
of PSMB members will also review the information
provided to determine if any changes are required to
increase the effectiveness of the Board.
Compliance with Corporate Governance Code
PSMB is satisfied that it has robust governance in
place, and that NIPS is compliant with relevant
sections of the Corporate Governance Code (2005).
The current relationships with NIPS’ Arms Length
Bodies (ALB) is under review as their status as
ALB’s may alter. Also, during the 2012-13 year,
the ARC did not include a member with a finance
background. However, a Finance Director from
the wider public sector has agreed to join this
Committee to rectify this discrepancy in future.
Ministerial Directions
At no time during the year were any Ministerial
directions given to NIPS.
SIGNIFICANT INTERNAL CONTROL ISSUES
Strategic Efficiency and Effectiveness Programme
Robust arrangements have been established to
ensure thorough scrutiny and challenge to the
SEE Programme and these are underpinned by
Programme and Project Management governance
structures. This included a Gateway 0 Review which
took place in March 2013. The Review report and
mitigation plan were presented to the ARC in June
2013. The delivery confidence assessment of the
SEE Programme was determined to be Amber/Red
with six key recommendations being made. These
include a revision of the Governance Arrangements,
managing the scope of the programme, and review
programme planning arrangements, among others.
An action plan has been developed for these
recommendations and they are in the process of
being implemented.
Safer Custody
Provision of safer custody remains a priority for
NIPS. In 2012-13 there have been eight deaths
in custody; although inquests have not yet taken
place, four of these deaths were believed to be self
inflicted. Six of these deaths are currently under
investigation by the Prisoner Ombudsman.
During this reporting period the Prisoner
Ombudsman has reported on six deaths in
custody. These deaths in custody highlight the
need for continued vigilance and compliance with
best practice in safer custody. NIPS continues to
work in close partnership with SET, which has
lead responsibility in relation to the delivery of
healthcare in prisons.
The Suicide and Self Harm Prevention Policy and
Standard Operating Procedures are currently
under review. Lessons learned from recent death
in custody investigations and external inspection
reports will be incorporated.
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64
Reportable Loss of Data
There was one reportable data loss during
2012-2013. In this incident, a member of the public
handed in a file containing personal information to
NIPS staff after it had been discovered in a second
hand file cabinet. A continuing programme of
improvement to Information Assurance is underway,
including the establishment of a dedicated lead and
formal organisational structure. The Information
Commissioner’s Office is currently investigating the
circumstances.
Suspected Fraud
NIPS is continuing to seek legal advice on contractor
overpayments which occurred in prior years. These
overpayments are being handled in accordance
with the legal advice received to mitigate further
financial risk to NIPS. New procedures have been
put in place to avoid any recurrence.
Dundonald House flooding
In June 2012, power was disrupted with no access
to telephones or computers after a flooding incident
at Prison Service Headquarters in Dundonald
House. Contingency plans were put into effect
and key staff relocated to ensure that essential
Headquarters services were maintained. Alternative
accommodation was sourced, and staff moved back
into Dundonald House in October 2012. While the
continuity plan was enacted successfully, a review
of the plan is ongoing in order to ensure the most
accurate information is provided to staff.
Compensation Claims
In order to mitigate the growing number of
claims against the Service, NIPS established a
Compensation Claims Working group to review
current practices and propose solutions to improve
current practices. The Compensation Claims
Working group provided their final report to the ARC
in May 2013 along with their proposed solutions.
These solutions, among others, included increased
training for staff in control and restraint techniques,
the regular review of risk assessments, and an
enhanced formalised reporting mechanism. These
proposals are currently under consideration and may
be taken forward throughout the forthcoming year.
Account NI
A steering group was established to oversee the
transition of NIPS onto the Account NI payment
system. While this transition is underway, a concern
raised by the steering group was the need to protect
the information of staff using the system. This
is due to staff overseeing the Account NI system
not having the correct level of security clearance
required. In order to facilitate this, anonymised
email accounts and job titles were established.
This means that no prison staff details are on the
Account NI system and no staff information is
compromised.
Monitoring of in-year budgets and targets
NIPS considered progress against targets and
objectives formally three times throughout the year.
Despite this monitoring, NIPS did not achieve a
number of the Key Performance Targets established
for the 2012-13 year. Details can be found on pages
9-11 of the Annual Report. In year monitoring of
budgets takes place quarterly and decisions are
made at the appropriate levels should queries or
reallocation issues arise.
Prison population
In response to the continued rise in the adult male
prisoner population, and in a step to ease doubling
of accommodation, NIPS commissioned new
accommodation blocks at Maghaberry. Quoile
House was officially opened in February 2013, and
the Minister of Justice announced that a new 360
cell accommodation block is in development in
March 2013.

2012-2013
Escape from Newry Courthouse
In September 2012, there was an escape from
secure custody at Newry Courthouse. The individual
had been granted bail; however, managed to evade
staff and leave the courthouse prior to signing the
required documents. The escapee returned the
following day to sign the required documents. One
member of staff was disciplined over the incident
and security procedures have been reviewed.
Target Operating Model
In April 2012, a new TOM based on a five day
working week and a standard Core Day was
launched and rolled out on a phased basis across the
establishments. New staff profiles and shift patterns
were implemented at all three establishments by
the end of October 2012. While the transitional
period during implementation resulted in a higher
than expected number of lock downs, the continued
embedding of the TOM is enabling the delivery
of a core day to prisoners. This core day provides
consistency and a predictable regime for prisoners.
Voluntary Early Retirement Scheme
While the number of staff who applied to leave
under the VER exceeded the initial business case
approved by DFP, an extension was granted to
enable a second group of eligible staff to leave.
Approval for this final business case was granted
by DFP in February 2013. 360 staff have left the
Service, and all but 27 of the remaining staff have
been informed that they will be allowed to leave
when it is operationally appropriate for them to do
so. NIPS is continuing to work towards securing the
necessary funding to allow the remaining individuals
to leave the Service.
Pilot of New Search Technology
Two pilot projects to assess whether there is
an effective and less intrusive method than full
searching were carried out this year. The pilots
looked at Millimetre Wave Body Scanners and ran
for three months in Magilligan and Hydebank Wood.
Following the completion of the pilots in January
2013, evaluation of the project determined that
there were limitations to the technology in the
prison environment and that current full searching
processes provided a higher level of assurance.
NIPS will continue to take steps to establish if there
is an effective and less intrusive method than full
searching of ensuring that prisoners leaving and
entering the prison are not carrying contraband.
NIPS Estate Strategy
A full public consultation was launched in April
2012 on the Outline Estate Strategy in order to
take the views of a wide range of stakeholders.
The consultation period was extended in order to
capture as wide a range of opinions as possible.
This included meetings with staff members at
establishments, two public meetings, and three
consultation workshops. A key outworking from this
consultation was a commitment by the Minister
of Justice to develop a dedicated women’s facility.
This is in light of consultation responses and reports
indicating that the current facilities were not fit
for purpose. The finalised version of the strategy,
including all findings, is due to be completed shortly.
Absenteeism
Absence through sickness has continued to be
high in the Service although there has been a
reduction sick absence from 15.2 days in 2011-12
to 12.7 days in 2012-13. Reducing levels of sick
absence remains to be a priority for NIPS in 2013-
14. As noted elsewhere in the Annual Report, NIPS’
response has been to ensure the NICS Sickness
Absence & Inefficiency Sickness Absence Policies are
applied and to remind staff at all levels of how they
should manage sickness absence and to work closely
with management.
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and Accounts
CJINI Report on Corporate Governance
The December 2010 report by CJINI on Corporate
Governance Arrangements in NIPS highlighted
areas of significant concern about management
and governance across the Service and identified
a number of underlying problems affecting the
Service’s performance, including: lack of clarity in
purpose; poor performance management; absence
of accountability; non-compliance with procedures
and inconsistent and inefficient delivery. In
response NIPS produced an updated Corporate
Governance Framework document. This document
was reviewed throughout the year as the items
listed on the Corporate Governance Action Plan
were implemented. NIPS officials provided a report
on progress to the Justice Committee in November,
and in May 2013.
Management of Life and Indeterminate
Sentence Prisoners
In July 2012 CJINI published their report on the
management of life and indeterminate sentence
prisoners which stated that both types of sentenced
prisoner were well managed in custody and in
the community following their release on licence.
Areas for improvement were identified and
recommendations made, but significant progress
was also noted by the inspectors since their last
report in 2009. Key recommendations include
the re-opening of the Working Out Unit (formerly
the Prisoner Assessment Unit) and an improved
integrated psychology service between NIPS and
PBNI. NIPS have accepted these and all of the other
recommendations and are working towards enacting
them.
Report on Maghaberry Inspection
CJINI published a report on the inspection of
Maghaberry Prison in March 2012. This inspection
was conducted in conjunction with Her Majesty’s
Chief Inspector of Prisons. The inspection made six
main recommendations, 87 other recommendations
and 20 housekeeping points. The six key
recommendations include an effective strategy to
reduce levels of violence and addressing bullying, a
change to medication administration procedures,
and the development of a new pre-release scheme
for lifers, among others. The implementation of the
accepted recommendations is being taken forward
by NIPS and by SET for relevant health related
issues.
NIAO 2011-12 Recommendations
NIAO identified areas for improvement within
procurement in the 2011-12 audit of NIPS. This
became a priority one recommendation in the
“Report To Those Charged With Governance” for the
2011-12 financial year. NIPS has made significant
improvements throughout 2012-13, including the
issuing of new Procurement Guidance in order to
ensure compliance with DOJ delegations and NIPS’
own procedures.
In addition, NIAO identified that an omission had
occurred in the NIPS financial statement with
respect to including a provision for the Injury on
Duty Scheme. NIPS 2011-12 Resource Accounts
were qualified on the basis that the Service was
unable to obtain a full actuarial valuation on
the NIPS element of the NICS Injury Benefit
Scheme. Throughout the year, NIPS worked with
DFP Pensions Branch to provide the Government
Actuarial Department with information to allow
them to carry out this valuation for the 2012-13
Resource Accounts. This valuation has now been
received and NIPS has incorporated this into the
2012-13 accounts.
66

2012-2013
From the previous year, the NIAO identified a
potential fraud while testing Travel and Subsistence
payments. This was in relation to duplicate claims
being submitted by members of staff. Interim
measures are in place to carry out manual checks
while a permanent solution is being examined.
Notices have been issued to staff to remind them of
the correct procedure to follow in order to avoid the
risk of fraud and duplication.
ACCOUNTING OFFICER STATEMENT ON
ASSURANCE
NIPS has established a robust assurance framework
that includes primary assurance through line
management structures on the achievement of
objectives. This primary assurance is supplemented
by secondary assurances provided through oversight
of management activity, and by the DOJ Internal
Audit team operating to Government Internal
Audit Standards. They deliver an agreed prioritised
programme of systems based audits covering
NIPS systems over time. The Head of Internal
Audit provides NIPS with an Annual Report and his
professional opinion on the level of assurance that
he can provide based on the work done. During the
2012/13 year, the Internal Audit programme was
impacted by the major flooding incident which
affected NIPS HQ and contributed to requests by
NIPS management to defer some planned internal
audit reviews. The Head of Internal Audit forms his
professional opinion on the basis of the Internal
audit work completed over a three year period and
he has provided overall satisfactory assurance.
Sue McAllister
Director General & Accounting Officer
18 June 2013
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The Certificate And Report Of The Comptroller And
Auditor General To The Northern Ireland Assembly
I certify that l have audited the financial statements
of the Northern Ireland Prison Service for the year
ended 31 March 2013 under the Government
Resources and Accounts Act (Northern ireland) 2001.
These comprise the Statement of Comprehensive
Net Expenditure, the Statement of Financial
Position, the Statement of Cash Flows, the
Statement of Changes in Taxpayers’ Equity 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 Accounting
Officer and auditor
As explained more fully in the Statement of
Accounting Officer’s Responsibilities, the Director
General as Accounting Officer is responsible for the
preparation of the statements and for being satisfied
that they give a true and fair view. My responsibility
is to examine, certify and report on the financial
statements in accordance with the Government
Resources and Accounts Act (Northern Ireland) 2001.
I conducted my audit in accordance with
international Standards on Auditing (UK and
Ireland). Those standards require me and my staff
to comply with the Financial Reporting Council’s
Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the
amounts and disclosures in the financial statements
sufficient to give reasonable assurance that
the financial statements are free from material
misstatement, whether caused by fraud or error.
This includes an assessment of: whether the
accounting policies are appropriate to the Northern
Ireland Prison Service’s circumstances have been
consistently applied and adequately disclosed; the
reasonableness of significant accounting estimates
made by Northern Ireland Prison Service; and the
overall presentation of the financial statements. In
addition I read ail the financial and non-financial
information in the Annual Report to identify
material inconsistencies with the audited financial
statements. If I become aware of any apparent
material misstatements or inconsistencies I consider
the implications for my certificate.
ln addition, I am required to obtain evidence
sufficient to give reasonable assurance that the
expenditure and income reported in the financial
statements have been applied to the purposes
intended by the Assembly and the financial
transactions recorded in the financial statements
conform to the authorities which govern them.
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2012-2013
Opinion on Regularity
ln my opinion, in all material respects the
expenditure and income recorded in the financial
statements have been applied to the purposes
intended by the Assembly and the financial
transactions recorded in the financial statements
conform to the authorities which govern them.
Opinion on financial statements
In my opinion:
• the financial statements give a true and fair
view of the state of the Northern Ireland Prison
Service’s affairs as at 31 March 2013 and of the
net operating cost, cash flows and changes in
taxpayers’ equity for the year then ended; and
• the financial statements have been properly
prepared in accordance with the Government
Resources and Accounts Act (Northern Ireland)
2001 and Department of Finance and Personnel
directions issued thereunder.
Matters on which I report by exception
I have nothing to report in respect of the following
matters which I report to you if, in my opinion:
• adequate accounting records have not been kept;
or
• the financial statements and the part of the
Remuneration Report to be audited are not in
agreement with the accounting records; or
• I have not received all of the information and
explanations l require for my audit; or
• the Governance Statement does not reflect
compliance with Department of Finance and
Personnel’s guidance.
Report
I have no observations to make on these financial
statements.
Opinion on other matters
In my opinion:
• the part of the Remuneration Report to be audited
has been properly prepared in accordance with
Department of Finance and Personnel’s
directions made under the Government
Resources and Accounts Act (Northern Ireland)
2001; and
• the information given in the Management
Commentary and Operating Review for the
financial year for which the financial statements
are prepared is consistent with the financial
statements.
KJ Donnelly
Comptroller and Auditor General
Northern Ireland Audit Office
106 University Street
Belfast
BT7 1EU
20 June 2013
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and Accounts
Financial Statements And Notes
Statement of Comprehensive Net Expenditure for the period ended 31 March 2013
2012-13 2011-12
Note Staff Other Income
Costs Costs Restated
£000 £000 £000
Administration Costs
Staff costs 3 10,012 9,198
Other administrative costs 4 6,060 5,526
Operating income 7 (97) (53)
Programme Costs
Staff costs 3 75,115 80,305
Voluntary Early Retirement
Scheme Staff Costs 3 22,171 22,710
Programme costs 5 63,206 39,883
Grant 6 294 302
Income 7 (3,101) (2,881)
Totals 107,298 69,560 (3,198) 154,990
Net Operating Cost 173,660 154,990
Other Comprehensive Expenditure
Note 2012-13 2011-12
£000 £000
Net (gain)/loss on revaluation of
property, plant and equipment 8 5,627 (4,162)
Net (gain)/loss on revaluation
of intangibles 9 (853) 44
Net (gain)/loss on revaluation of
available for sale financial assets – –
Total Comprehensive Expenditure
for the year ended 31 March 2013 178,434 150,872
The notes on pages 74 to 107 form part of these accounts
70

2012-2013
Statement of Financial Position as at 31 March 2013
Note 2012-13 2011-12 1 April
2011
£000 £000 £000
Non-current assets Restated Restated
Property, plant and equipment 8 204,919 215,783 206,923
Intangible assets 9 7,289 7,428 7,262
Trade and other receivables 13 50 10 13
Financial assets 10 926 1,276 1,738
Total non-current assets 213,184 224,497 215,936
Current assets
Inventories 12 1,642 1,545 1,480
Trade and other receivables 13 1,371 2,063 2,167
Financial assets 10 313 434 391
Cash and cash equivalents 14 95 74 52
Total current assets 3,421 4,116 4,090
Total assets 216,605 228,613 220,026
Current liabilities
Cash and cash equivalents 14 (5,737) (703) (3,721)
Trade and other payables 15 (33,241) (35,713) (15,943)
Provisions 16 (5,538) (3,500) (2,940)
Total current liabilities (44,516) (39,916) (22,604)
Non-current assets less net current liabilities 172,089 188,697 197,422
Non-current liabilities
Provisions 16 (30,553) (8,482) (6,711)
Other payables 15 (6) (8) (10)
Total non-current liabilities (30,559) (8,490) (6,721)
Assets less liabilities 141,530 180,207 190,701
Taxpayers’ Equity
General fund 107,628 139,714 149,399
Revaluation reserve 33,902 40,493 41,302
Total taxpayers’ equity 141,530 180,207 190,701
Sue McAllister
Director General & Accounting Officer
18 June 2013
The notes on pages 74 to 107 form part of these accounts
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Statement of Cash Flows for the period ended 31 March 2013
Note 2012-13 2011-12
£000 £000
Cash flows from operating activities
Restated
Net operating cost 2 (173,660) (154,990)
Adjustments for non-cash transactions 4,5 38,293 18,752
(Increase)/decrease in trade and other receivables 13 652 107
less movements in receivables relating to items not
passing through the Statement of Comprehensive
Net Expenditure 13 (2) (199)
(Increase)/decrease in inventories 12 (97) (65)
Increase/(decrease) in trade payables 15 (2,474) 19,768
less movements in payables relating to items not
passing through the Statement of Comprehensive
Net Expenditure 1,504 1,311
Use of provisions (1,595) (1,612)
Net cash outflow from operating activities (137,379) (116,928)
Cash flows from investing activities
Purchase of property, plant and equipment (8,095) (19,787)
Purchase of intangible assets 9 (355) (507)
Items funded by Department of Justice - -
Proceeds of disposal of property, plant and equipment 9 15
Loans to other bodies 10 - (15)
(Repayments) from other bodies 10 530 518
Net cash outflow from investing activities (7,911) (19,776)
Cash flows from financing activities
Financing from Department of Justice 140,456 139,560
Net financing 140,456 139,560
Net increase/(decrease) in cash and cash equivalents in
the period before adjustment for receipts and payments
to the Consolidated Fund (4,834) 2,856
Receipts due to the Consolidated Fund which are outside
the scope of the Agency’s activities 95 485
Payments of amounts due to the Consolidated Fund (274) (301)
Cash and cash equivalents at the beginning of the period 14 (629) (3,669)
Cash and cash equivalents at the end of the period 14 (5,642) (629)
72
The notes on pages 74 to 107 form part of these accounts

2012-2013
Statement of Changes in Taxpayers’ Equity for the period ended 31 March 2013
Note General Revaluation Total
Fund Reserve Reserves
£000 £000 £000
Balance at 31 March 2011 (Restated) 151,059 41,302 192,361
Prior Period Adjustments 24 (1,660) - (1,660)
Balance at 1 April 2011 (Restated) 149,399 41,302 190,701
Changes in taxpayers’ equity for 2011-12
Net gain on revaluation of property, plant and equipment 8,9 – 4,118 4,118
Actuarial loss (600) – (600)
Non-cash charges - auditors’ remuneration 4 42 – 42
Non-cash charges – other 1,376 – 1,376
Transfers between reserves 4,927 (4,927) –
Net operating costs 2 (154,990) – (154,990)
Total recognised income and expense for 2011-12 (149,245) (809) (150,054)
Funding from Department of Justice 139,560 – 139,560
Balance at 31 March 2012 (Restated) 139,714 40,493 180,207
Changes in taxpayers’ equity for 2012-13
Opening adjustment - 155 155
Net gain on revaluation of property, plant and equipment 8,9 - (4,774) (4,774)
Actuarial Loss 16 (2,340) - (2,340)
Non-cash charges - auditors’ remuneration 4 42 - 42
Non-cash charges – other 1,444 - 1,444
Transfers between reserves 1,972 (1,972) -
Net operating costs 2 (173,660) - (173,660)
Total recognised income and expense for 2012-13 (172,542) (6,591) (179,133)
Funding from Department of Justice 140,456 - 140,456
Balance at 31 March 2013 107,628 33,902 141,530
The notes on pages 74 to 107 form part of these accounts
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and Accounts
Notes to the accounts
1. Statement of Accounting Policies
These financial statements have been prepared in
accordance with the 2012-13 Government Financial
Reporting Manual (FReM) issued by the Department
of Finance and Personnel, and directions given
by the Department of Finance and Personnel,
under section 11(2) of the Government Resources
and Accounts Act (Northern Ireland) 2001. The
Department of Finance and Personnel requires NIPS
to prepare for each financial year a statement of
accounts in the form and on the basis set out in
the Accounts Direction. The accounting policies
contained in the FReM apply International Financial
Reporting Standards (IFRS) as adapted or interpreted
for the public sector context.
The accounts are stated in sterling, which is the
Agency’s functional and presentational currency.
Unless otherwise noted, the amounts shown in
these financial statements are in thousands of
pounds sterling (£000).
1.2 Operating Income
Operating income is income that relates directly
to the operating activities of the Northern Ireland
Prison Service. This includes income from Trading
Activities in relation to prisoners and staff catering
and is shown gross on the face of the Statement
of Net Comprehensive Expenditure and in Note 7
with related costs and expenses shown separately in
Notes 4 and 5 of these financial statements.
Where the FReM permits a choice of accounting
policy, the accounting policy which has been
judged to be the most appropriate to the particular
circumstances of the Northern Ireland Prison Service
for the purpose of giving a true and fair view has
been selected. The particular policies adopted by the
Northern Ireland Prison Service are described below.
They have been applied consistently in dealing
with items considered material to the financial
statements. The change in accounting policy this
year in relation to the Injury on Duty Provision
amounts to a Prior Year Adjustment which has been
detailed in Note 1.25.
1.1 Accounting Convention
These accounts have been prepared under the
historical cost convention modified to account for
the revaluation of property, plant and equipment,
intangible assets and inventories and the revaluation
of financial instruments which are recorded in the
Statement of Financial Position at their fair value,
being the carrying amount discounted to present
value at the effective rate of interest of 3.5%.
1.3 Property, plant and equipment
Freehold Land and Buildings on the Northern Ireland
Prison Service estate are capitalised where title is
held by the Agency. Land and Buildings are subject
to professional valuation at least once every five
years and revalued using Land and Property Services
indices in intervening years.
Land and Property Services last carried out a
revaluation of Land and Buildings in the Financial
Year 2011-12 and these have been revalued using
indices provided by Land and Property Services in
the current year.
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2012-2013
Component Definition
Building Substructure, Frame, Upper Floors,
Structure Roof, Stairs, External Walls,
Windows & external doors, Internal
walls & partitions, Internal doors,
Floors/wall/ceiling finishes
Engineering Sanitary appliances, services
Systems equipment, disposal installation,
water installation, heat source,
space heating, & air treatment,
ventilation systems, electrical, gas,
lift and protective installations.
Equipment & CCTV, access control, alarm
Security systems, control rooms including all
Installations associated ICT hardware &
software; Fixed furniture, fittings,
equipment & appliances.
External Roads, footpaths, drainage, fences,
Works gates, boundary walls, street
furniture, landscaping and
external lighting.
Property, Plant and Equipment, other than Land and
Buildings are carried at current cost using indices
compiled by the Office for National Statistics. The
standard threshold for capitalisation is £1,000.
Lower thresholds apply to certain types of IT
equipment.
Expenditure on office furniture and equipment is
classified as capital expenditure if the purchase cost
of an individual item is over the standard threshold
of £1,000. An exception to this is if, as the result
of a refurbishment or the establishment of a new
office or project, a pool of new office furniture
or equipment is purchased with individual items
costing less than £1,000 but the total purchase
costs are more than £1,000.
Properties regarded by the Northern Ireland Prison
Service as operational are valued on the basis of
existing use, or where this could not be assessed
because there is no market value for the property, its
depreciated replacement cost. Properties regarded
by the Northern Ireland Prison Service as nonoperational
are valued on the basis of open market
value.
1.4 Intangible Assets
Purchased computer software licences are
capitalised as intangible assets where expenditure
of £1,000 or more is incurred. Intangible assets are
stated at their market value. Intangible assets are
amortised on a straight-line basis over the expected
useful lives of the assets concerned.
1.5 Financial Instruments
Under IAS 39 and IFRS 7, the Northern Ireland
Prison Service is required to recognise, measure and
disclose the elements of its 0% interest Housing
Loan Scheme at fair value. These elements have
been identified within both Non-current and
Current Financial Assets. The carrying value has been
discounted at a rate of 3.5% in line with Treasury
guidelines. The Northern Ireland Prison Service does
not hold any other financial instruments.
1.6 Depreciation and Amortisation
Freehold land is not depreciated. NIPS has
depreciated separately identified components of
its buildings assets according to the useful life
of that component, with individual lives applied
to each component. Provision for depreciation
and amortisation is made to write-off the cost
of property, plant and equipment and intangible
assets on a straight-line basis over the expected
useful lives of the assets concerned. Land, assets
under construction or assets awaiting disposal are
not depreciated. The overall expected useful lives of
assets are as follows:
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ANNUAL
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76
- Permanent buildings up to 55 years
- Temporary buildings 10 - 25 years
- Plant and Equipment 3 - 25 years
- Furniture and
Office Equipment
3 - 15 years
- Information Technology
and Software
3 - 8 years
- Vehicles 5 - 20 years
1.7 Realised Element of Depreciation from
Revaluation Reserve
Depreciation is charged to expenditure on the
revalued amount of property, plant and equipment.
An element of the depreciation therefore arises due
to the increase in valuation and is in excess of the
depreciation that would be charged on the historical
cost of assets. The amount relating to this excess is
a realised gain on revaluation and is transferred from
the Revaluation Reserve to the General Fund.
1.8 Inventories
Inventories are valued at the lower of cost or net
realisable value.
1.9 Pension Costs
Past and present employees are covered by the
provisions of the Principal Civil Service Pension
Scheme (Northern Ireland) [PCSPS (NI)] and the
Principal Civil Service Pension Scheme (GB) [PCSPS
(GB)]. Liability for payment of future benefits is
a charge to the PCSPS (NI) and PCSPS (GB). The
Agency meets the cost of pension cover through
the payment of charges calculated on an accruing
basis. Contributions are charged to the Statement of
Comprehensive Net Expenditure as incurred.
1.10 Employee Benefits
Under IAS 19 an employing entity should recognise
the undiscounted amount of short term employee
benefits expected to be paid in exchange for the
service. The Northern Ireland Prison Service has
therefore recognised both annual and flexi leave
entitlements that have been earned by the year
end but not yet taken. These are included in Current
Liabilities and in Staff Costs for both administration
and programme staff across the service.
1.11 Provision for Liabilities and Charges
The Northern Ireland Prison Service provides for
legal and constructive obligations, which are of
uncertain timing or amount, at the Statement of
Financial Position date on the basis of the best
estimate of the expenditure required to settle the
obligation. Where the effect of the time value of
money is material, the estimated cash flows are
discounted
1.12 Contingent Liabilities
In addition to contingent liabilities disclosed in
accordance with IAS 37, the Northern Ireland Prison
Service discloses for parliamentary reporting and
accountability purposes certain statutory and nonstatutory
contingent liabilities where the likelihood
of a transfer of economic benefit is remote, but
which have been reported to the Northern Ireland
Assembly in accordance with the requirements of
Managing Public Money (Northern Ireland).
Where the time value of money is material,
contingent liabilities which are required to be
disclosed under IAS 37 are stated at discounted
amounts and the amount reported to the Northern
Ireland Assembly separately noted. Contingent
liabilities that are not required to be disclosed by
IAS 37 are stated at the amounts reported to the
Northern Ireland Assembly.
1.13 Operating Leases
Operating lease rentals are charged to the
Statement of Comprehensive Net Expenditure as
incurred.

2012-2013
1.14 Grants
Grants payable to third parties are charged to the
Statement of Comprehensive Net Expenditure as
the recipient carries out the activity that creates
entitlement.
1.15 Early Retirement Costs
The Northern Ireland Prison Service is required to
meet the cost of paying pensions of employees who
retire early from the date of their retirement until
they reach normal pension age. The Northern Ireland
Prison Service accounts in full for this cost when
the applications for early retirement have been
approved and the individuals have been notified.
1.16 VAT
The majority of the activities of the Northern
Ireland Prison Service are outside the scope of
VAT. Irrecoverable VAT is charged to the relevant
expenditure category or included in the capitalised
purchase cost of property, plant and equipment.
Where output tax is charged or input VAT is
recoverable the amounts are stated net of VAT.
1.17 Administration and programme
expenditure
The Statement of Comprehensive Net Expenditure
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 by DFP.
1.18 Notional costs
Some of the costs directly related to the running
of the Northern Ireland Prison Service are borne by
other Government Departments or organisations.
These costs have been included on the basis of
the estimated cost incurred by the providing
organisation.
1.19 Insurance
Except where there is a statutory requirement to
do so, the Northern Ireland Prison Service does not
take out general insurance. Instead expenditure
in connection with uninsured risks is charged as
incurred.
1.20 Funding
The Northern Ireland Prison Service is financed by
supply estimates voted by the Northern Ireland
Assembly. Its provision was set out in Request for
Resources 1 of the Department of Justice for this
reporting period.
1.21 Third Party Assets
The Northern Ireland Prison Service holds, as
custodian, certain assets belonging to third parties.
These assets consist of cash held in respect of a
Prisoners’ Amenity Fund administered by each prison
establishment and used for the welfare and benefit
of all prisoners. Also included are cash amounts
belonging to prisoners in the Prisoners’ Personal
Cash (PPC) accounts, held in the Northern Ireland
Prison Service’s bank account. PPC balances are
disclosed at Note 23 but not elsewhere in these
accounts since neither the Northern Ireland Prison
Service nor the Government more generally has a
direct beneficial interest in them.
1.22 Related Party Transactions
The Northern Ireland Prison Service is required to
disclose material transactions with related parties
– bodies or individuals that have the potential to
control or influence the Northern Ireland Prison
Service or to be controlled or influenced by the
Northern Ireland Prison Service. Disclosure of these
transactions allows readers to assess the extent to
which the Northern Ireland Prison Service’s financial
position and income and expenditure may have
been affected by the existence of related parties and
by transactions and outstanding balances with such
parties.
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and Accounts
1.23 Critical accounting estimates and key
judgements
The preparation of financial statements in
conformity with IFRS requires the use of accounting
estimates and assumptions. It also requires
management to exercise its judgement in the
process of applying the Northern Ireland Prison
Service’s accounting policies. We continually
evaluate our estimates, assumptions and
judgements based on available information and
experience. As the use of estimates is inherent in
financial reporting, actual results could differ from
these estimates. The estimates and assumptions
which have the most significant risk of causing a
material adjustment to the carrying amounts of
assets and liabilities are discussed below.
(i) Depreciation of property, plant and
equipment
Depreciation is provided in the consolidated
accounts so as to write-down the respective assets
to their residual values over their expected useful
lives and as such the selection of the estimated
useful lives and the expected residual values of the
assets requires the use of estimates and judgements.
Details of the estimated useful lives are as shown in
Note 1.6.
(ii) Impairment of property, plant and equipment
Where there is an indication that the carrying value
of items of property, plant and equipment may
have been impaired through events or changes in
circumstances, a review will be undertaken of the
recoverable amount of that asset.
iii) Injury on Duty Awards life expectancy
assumption
Benefits payable under the Civil Service Injury
Benefit Scheme (Northern Ireland) relating to the
Northern Ireland Prison Service are payable to
former employees for life. Provision is made for the
costs of providing injury awards to employees based
on the current number of injury awards and also on
the estimated life expectancy of these pensioners.
This year the injury awards were valued under
International Accounting Standard (IAS) 19
Employee Benefits by Government Actuary’s
Department (GAD). IAS 19 requires the employer
to value the expected injury awards for active
members, who are currently uninjured but who
may become injured in the future, and include the
value in the Statement of Accounts. This amounts
to a change in accounting policy. Therefore, the
closing balance of the Injury Awards liability and the
General Reserve has been restated from the earliest
opportunity 1 April 2011.
(iv) Litigation Provisions
The litigation provision relates to legal claims
against the Northern Ireland Prison Service by
staff, prisoners and third parties for injuries and
other damages including fair employment and
industrial tribunal cases. The provisons are based
upon the assessment of the likely damages and
legal costs payable, with reference to legal experts
and in consideration of settlements in cases of a
similar nature were it is probable that the claim
will be successful. NIPS also carry out an objective
exercise to compare estimates to actual settlements
in current and previous years and will adjust the
provisions in line with these findings on an annual
basis.
Other than depreciation, provisions and employee
benefits, no material accounting estimates or
judgements were made by the Northern Ireland
Prison Service in preparing these accounts.
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2012-2013
1.24 Voluntary Early Retirement Scheme
The cost of severance payments to staff leaving the
organisation under the Voluntary Early Retirement
Scheme are included within programme costs. The
cost of staff working on the administration of the
scheme are included within staff costs.
1.25 Prior year adjustments
During the financial year 2012-13 the following
changes took place:
Adjustment for IAS 19 2011-12
Valuation of Injury Awards £’000
Statement of Comprehensive
Net Expenditure 155,400
Increase in borrowing costs 263
Decrease in Provision (673)
Restated Statement of
Comprehensive Net Expenditure 154,990
Provisions
This year the injury awards were valued under IAS
19 Employee Benefits. IAS 19 requires the employer
to value the expected injury awards for active
members who are currently uninjured but who may
become injured in the future, and include the value
in the Statement of Accounts.
Statement of 2011-12 2010-11
Financial Position £’000 £’000
Assets less liabilities 182,057 192,361
Increase in provision (1,850) (1,660)
Restated assets
less liabilities 180,207 190,701
This amounts to a change in accounting policy
which has been treated as a prior year adjustment
in line with IAS 8 and prior year comparative figures
have been restated accordingly from the earliest
opportunity 1 April 2011. The prior year adjustment
is required as the change in accounting policy must
be applied retrospectively to reflect the changes
in the figures as if the new accounting policy had
always applied. These adjustments are reflected in
the main statements and in notes 5, 16 and 24 to
these financial statements.
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and Accounts
1.26 Accounting standards, interpretations and amendments to published standards adopted in the year
ended 31 March 2013
Chapter in Area Description Comments
FReM affected of revision
2012-13
7 Accounting for Reporting entities participating in the CRC Energy
the Carbon
Efficiency Scheme will need to account for assets,
Reduction
liabilities and expenses related to the scheme. This
Commitment
is initially at cost. If there is evidence of an active
(CRC) Energy
market, scheme assets should be measured at fair
Efficiency
value.
Scheme
If payments made represent a prepayment for
future years NIPS will account for the related
assets, liabilities and expenses.
9 Financial
instruments:
Disclosures
(annual
improvements)
Increased disclosure
requirements for transfers
of financial assets. Where
entities have transferred
financial assets outside of
the legal body, disclosures
are required to reflect the
impact of this, particularly
where the entity retains
some form of interest in
those assets.
The FReM applies IFRS 7 in full, and the
expectation is that it will continue to do so. This
will incorporate these increased disclosures.
The increased disclosure requirements have an
immaterial impact on the NIPS accounts, as NIPS
is unlikely to transfer the financial assets.
The N.I. Prison Service has reviewed the remaining standards, interpretations and amendments to published
standards that became effective during 2012-13 and which are relevant to its operations. The adoption of these
standards has not had a significant impact on the financial position or results of the N.I. Prison Service.
1.27 Accounting standards, interpretations and amendments to published standards not yet effective
The N.I. Prison Service has reviewed the additional or revised accounting standards and new (or amendments to)
interpretations contained within the Government Financial Reporting Manual (FReM) 2013-14 and considers that
these changes are not relevant to its operations.
80
In addition, certain new standards, interpretations and amendments to existing standards have been published that
are mandatory for accounting periods beginning on or after 1 April 2011 or later periods, but which the N.I. Prison
Service has not adopted early. Other than as outlined in the table below, the N.I. Prison Service considers that these
standards are not relevant to its operations.

2012-2013
Standard Description of revision Application Comments
date
IAS 1
Presentation of financial statements (Other
Comprehensive Income (OCI)) – Requiring items
of OCI to be grouped on the basis of whether they
might at some point be reclassified (‘recycled’) from
OCI to profit (e.g. cash flow hedges) or where they
will not (e.g. gains on property revaluation). This will
make it clearer to users what their potential effect
on profit or loss will be in future periods, notably in
light of improved disclosures of financial instruments
and pensions, and where there will be no impact.
Amendments also allow simplified reporting for
discontinued operations and OCI tax grouping.
01 July 2012
The application of the IAS 1
amendments interpreted (for
terminology) and adapted
(requiring a single Statement of
Comprehensive Net Expenditure,
unless agreed by the Relevant
Authority) for the public sector
context is effective from 1 April
2013.
IAS 19
Post-employment benefits – the amended IAS
introduces a number of changes including:
• Recognition – the elimination of the option to
defer the recognition of gains and losses resulting
from defined benefit plans (the ‘corridor approach’);
• Presentation – the elimination of options for the
presentation of gains and losses relating to those
plans; and
• Disclosures – the improvement of disclosure
requirements that will better show the
characteristics of defined benefit plans and the risks
arising from those plans.
It also modifies accounting for termination
benefits, including distinguishing benefits provided
in exchange for service and benefits provided in
exchange for the termination of employment
and affect the recognition and measurement of
termination benefits.
01 January
2013
The ‘corridor approach’ is not
permitted by the FReM so the
main impact of the change will
not be relevant.
There may, however, be impacts
on defined benefit pension
scheme accounts and other
entities consolidating defined
benefit schemes due to the new
presentation and disclosure
requirements.
Entities may also be impacted by
modifications to accounting for
termination benefits.
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and Accounts
Standard Description of revision Application Comments
date
IFRS 13
Fair value measurement – IFRS 13 has been
01 January
The application of IFRS 13 is
prepared to provide consistent guidance on fair
2013
subject to further review by HM
value measurement for all relevant balances and
Treasury and the other relevant
transactions covered by IFRS (except where IFRS 13
authorities before due process
explicitly states otherwise).
consultation.
The standard:
• Defines fair value, provides guidance on fair
value measurement techniques, and sets out the
disclosure requirements;
• Requires fair value be measured using the most
reliable data and inputs available to determine the
exit price for an asset/liability (taken as the price
that two market participants – a buyer and a seller
– would settle on.); and
• Establishes a hierarchy for inputs used to determine
fair value (levels 1 to 3).
IAS 16
Classification of servicing equipment - items such
01 January
The FReM is expected to apply
as spare parts, stand by equipment and servicing
2013
this change in full.
equipment are recognised under IAS 16 when they
meet the definition of property, plant or equipment.
They are otherwise classified as inventory under
IAS 2.
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2012-2013
2. Analysis of Net Expenditure by Segment
2012-13
Maghaberry Magilligan Hydebank Others Total
£000 £000 £000 £000 £000
Gross Expenditure 56,406 27,123 20,046 73,283 176,858
Income (1,465) (772) (364) (597) (3,198)
Net Expenditure 54,941 26,351 19,682 72,686 173,660
2011-12 (Restated)
Maghaberry Magilligan Hydebank Others Total
£000 £000 £000 £000 £000
Gross Expenditure 58,055 29,340 21,747 48,782 157,924
Income (1,270) (736) (385) (543) (2,934)
Net Expenditure 56,785 28,604 21,362 48,239 154,990
In line with the requirements of IFRS 8, the Northern Ireland Prison Service has reported on Income, Gross
and Net Expenditure by geographical segment as pertains to each operational establishment and is consistent
with the management approach and internal reporting structures existing within the Northern Ireland Prison
Service.
The ‘Others’ segment reported above consists of all Headquarters functions, the Prison Service College and
the Prisoners’ Escorting and Court Custody Service.
The increase in ‘Others’ relates to the cost of the Voluntary Early Retirement Scheme.
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and Accounts
3. Staff Numbers and Related Costs
Staff costs comprise:
Administration costs
2012-13 2011-12
Total Permanently Others Total
employed
staff
£000 £000 £000 £000
Wages and salaries 7,854 7,635 219 7,174
Social security costs 629 629 - 599
Other pension costs 1,529 1,529 - 1,425
Total administration staff costs 10,012 9,793 219 9,198
Programme costs
Wages and salaries 58,810 57,937 873 62,142
Social security costs 4,797 4,797 - 5,046
Other pension costs 11,508 11,508 - 13,117
Total programme staff costs 75,115 74,242 873 80,305
Programme costs
Wages and salaries 21,171 21,171 - 22,001
Social security costs 1,000 1,000 - 709
Total programme staff costs 22,171 22,171 - 22,710
Total staff costs 107,298 106,206 1,092 112,213
£25k staff costs (2011-12: £50k) have been capitalised for staff directly assigned to major capital projects.
Pensions
The Principal Civil Service Pension Scheme (Northern Ireland) [PCSPS(NI)] and Principal Civil Service Pension
Scheme [PCSPS(GB)] are unfunded multi-employer defined benefit schemes but the Northern Ireland Prison
Service is unable to identify its share of the underlying assets and liabilities. The most up to date actuarial
valuation was carried out as at 31 March 2007 and details of this valuation are available in the PCSPS(NI)
resource accounts or the resource accounts of the Cabinet Office: Civil Superannuation (www.civilservicepensions.gov.uk).
For 2012-13, employer’s contributions of £13,008,509 were payable to the PCSPS(NI) and the PCSPS(GB)
(2011-12: £14,503,188) at one of five rates in the range 18% to 25% of pensionable pay, based on salary
bands. The scheme’s Actuary reviews employer contributions every four years following a full scheme
valuation. However HM Treasury has instructed the scheme to cease further work on the March 2010
valuation.
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2012-2013
3. Staff Numbers and Related Costs (continued)
A new valuation scheme based on data as at 31 March 2012 is currently being undertaken by the Actuary to
review employer contribution rates for the introduction of a new career average earning scheme from April
2015. From 2013-14, the rates will remain in the range 18% to 25%. The contribution rates are set to meet
the costs of the benefits accruing during 2012-13 to be paid when the member retires, and not the benefits
paid during this period to existing pensioners.
Employees can opt to open a partnership pension account, a stakeholder pension with an employer
contribution. Employer’s contributions of £28,488 (2011-12: £38,338) were paid to one or more of the panel
of three appointed stakeholder pension providers. Employer’s contributions are age-related and range from
3% to 12.5% of pensionable pay. Employers also match employee contributions up to 3% of pensionable pay.
In addition, employer contributions of £1,820 (2011-12: £2,140), 0.8% of pensionable pay, were payable to
the PCSPS(NI) to cover the cost of the future provision of lump sum benefits on death in service and ill health
retirement of these employees.
Contributions due to the partnership pension providers at the reporting period date were £nil. Contributions
prepaid at that date were £nil.
Ill Health retirement
17 persons (2011-12: 20 persons) retired early on ill health grounds; the total additional accrued pension
Liabilities in the year amounted to £20,585 (2011-12: £36,688)
Average number of persons employed
The average number of whole-time equivalent persons employed in the year to date was as follows:
Number
2012-13 2011-12
Total Permanent Others Total
Staff
Administration staff
Uniformed grades 83 83 - 37
Administration and support 210 207 3 195
Staff engaged on capital projects 1 1 - 1
Total number of administration staff 294 291 3 233
Programme staff
Uniformed grades 1,432 1,432 - 1,707
Administration and support 259 249 10 261
Staff engaged on capital projects - - - -
Total number of programme staff 1,691 1,681 10 1,968
Total number of staff 1,985 1,972 13 2,201
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3. Staff Numbers and Related Costs (continued)
Reporting of compensation and exit packages for all staff 2012-13
Exit package cost band
Number of Number of Total number
compulsory other departures of exit packages
redundancies agreed by cost band
£200,000 0(0) 139(3) 139(3)
Total number of
exit packages 0 (0) 192(299) 192(299)
Total resource cost /£ – 41,697(23,868) 41,697(23,868)
Comparative data shown (in brackets) for previous year
Redundancy and other departure costs have been paid in accordance with the provisions of the Civil Service
Compensation Scheme (Northern Ireland), a statutory scheme made under the Superannuation (Northern
Ireland) Order 1972. Exit costs which include pension costs due to the PCSPS (NI) are accounted for in full
in the year of departure. Where the department has agreed early retirements, the additional costs are met
by the department and not by the Civil Service pension scheme. Ill-health retirement costs are met by the
pension scheme and are not included in the table.
The number of other departures relates solely to those staff leaving under the VER scheme.
The figures above include staff who have applied to leave the service under the terms of the Vountary Early
Retirement (VER) Scheme and have been selected for departure at this financial year end. These staff will be
released during the 2013/14 financial year in tranches when it is operationally appropriate to do so.
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2012-2013
4. Other Administrative Costs
2012-13 2011-12
£000 £000
Staff related costs 1,143 1,043
Rates 173 199
Heat, light and power 192 200
Repairs and maintenance 1,032 804
Rentals under operating leases – buildings 210 168
Rentals under operating leases – non land and buildings 13 12
Telecommunications 254 276
Equipment and office supplies 137 256
Hospitality 7 7
Trading activities 34 11
Headquarters costs 212 126
Other costs 1,150 1,003
Non-cash costs
Provisions provided for in year 17 3
Notional administrative costs provided by Parent Department
IT support 1,200 1,200
Legal costs - -
Internal audit 100 68
Notional administrative costs provided by Other Departments and Agencies
Auditors’ remuneration 42 42
Telecommunications 144 108
Total Other Administrative Costs 6,060 5,526
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and Accounts
5. Programme Costs
Note 2012-13 2011-12
£000 £000
Restated
Prisoner accommodation and related expenditure 4,524 4,124
Prisoner education, training and initiatives 1,834 1,923
Other prisoner related costs 3,477 3,269
Staff related costs 2,130 1,138
Rates 5 3 2,320 1,365
Heat, light and power 4,392 3,879
Repairs and maintenance 3,538 2,821
Rentals under operating leases
– non land and buildings 29 25
Telecommunications 374 328
Equipment and office supplies 437 429
Hospitality 5 4
Trading activities 2,415 2,317
Legal Fees 338 491
Security costs 199 124
Other costs 404 315
Non-cash costs
Depreciation 8 10,230 9,435
Amortisation 9 1,599 1,324
Loss/(Profit) on disposal of property,
plant and equipment 2 (7)
(Reversal of)/Permanent diminution of
property, plant and equipment 8,9,11 1,644 3,323
Write off of property, plant and equipment 28 -
Write off of financial assets - -
Notional interest receivable 5 1 (59) (84)
Provisions (released)/provided for in year 5 2 22,996 2,970
Borrowing costs on provisions 16 350 370
Notional programme costs provided by Parent Department
Legal costs - -
Total Other Programme Costs 63,206 39,883
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2012-2013
5. Programme Costs (continued)
5 1 Notional interest receivable
Included within Programme Costs is £59k (2010-11: £84k) related to the calculated net interest
receivable on housing loans, calculated at 3.5% of the amortised cost (fair value) of the loans (see Note
10 on Financial Instruments).
5 2 Provisions
Included within Programme Costs is £22,996k, (2011-12: £2,970) showing a net increase in costs due
to provisions released and provided for in the year. These figures include £1,106 (2011-12: £344k)
provided for Litigation, £1,461k (2011-12:£1,146k) provided for Hearing Loss, £80k, (2011-12: £120k)
provided for injury awards, £20,285k (2011-12: £1,158k) provided for the Voluntary Early Retirement
scheme (See note 16).
5 3 Rates
Increase due to charges for new accommodation at Maghaberry which created an additional 120 cells.
6. Grant
2012-13 2011-12
£000 £000
Prison Service Trust 294 302
This grant was paid by the Northern Ireland Prison Service to the Prison Service Trust to provide healthcare, life
planning and support services for family members of murdered prison officers, officers who died in service and
officers who retired on health grounds.
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and Accounts
7. Income
2012-13 2011-12
£000 £000
Administration Income
Sale of goods and services 97 53
97 53
Programme Income
Sale of goods and services 2,599 2,382
Prisoner productions 13 11
Video-link services 42 32
Staff accommodation - 3
European Funding 293 372
Causeway 63 75
Miscellaneous 91 6
3,101 2,881
Total Operating Income 3,198 2,934
90

2012-2013
8. Property, plant and equipment
Cost or valuation
Land Buildings Information Plant & Vehicles Furniture Assets Total
Technology Machinery & Fittings Under
Construction
£000 £000 £000 £000 £000 £000 £000 £000
At 1 April 2012 5,844 187,230 3,362 24,384 4,195 1,527 21,127 247,669
Additions - - 122 150 109 17 6,531 6,929
Disposals (8) - (3) (464) - (20) - (495)
Impairments (6) (1,687) (31) (147) - (27) (28) (1,926)
Impairments Reversals - - 22 116 - 2 - 140
Reclassifications - 21,461 85 65 34 - (21,934) (289)
Revaluations (196) (6,272) 463 1,430 129 23 - (4,423)
At 31 March 2013 5,634 200,732 4,020 25,534 4,467 1,522 5,696 247,605
Depreciation
At 1 April 2012 - 7,376 2,833 18,929 2,053 695 - 31,886
Charged in year - 7,990 292 1,397 433 119 - 10,231
Disposals - (70) (3) (392) - (19) - (484)
Impairments - (64) (23) (175) - (14) - (276)
Impairments Reversals - - 16 108 - 1 - 125
Reclassifications - - - - - - - -
Revaluations - (450) 399 1,169 74 12 - 1,204
At 31 March 2013 - 14,782 3,514 21,036 2,560 794 - 42,686
Carrying amount At 31 March 2013 5,634 185,950 506 4,498 1,907 728 5,696 204,919
Carrying amount At 31 March 2012 5,844 179,854 529 5,455 2,142 832 21,127 215,783
Asset financing:
Owned 5,634 185,950 506 4,498 1,907 728 5,696 204,919
Carrying amount At 31 March 2013 5,634 185,950 506 4,498 1,907 728 5,696 204,919
Land and Property Services (LPS) carried out a full valuation of land and buildings at 1 April 2011, in accordance
with the RICS Appraisal and Valuation Manual and on a componentised basis. The next full valuation of land and
buildings will be 1 April 2016.
It is intended that the Prison Service College at Millisle will be disposed of once the new joint training facility is
opened at Desertcreat circa 2015. The NBV of £3,329k for the property at Millisle has been included within land
and buildings (based on LPS valuations in 2012 indexed to current values).
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and Accounts
8. Property, plant and equipment (continued)
Cost or valuation
Land Buildings Dwellings Information Plant & Vehicles Furniture Assets Total
Technology Machinery & Fittings Under
Construction
£000 £000 £000 £000 £000 £000 £000 £000 £000
At 1 April 2011 4,634 239,646 1,776 3,344 31,379 3,987 1,861 10,530 297,157
Additions - - - 3 255 51 24 18,158 18,491
Disposals - - - - (276) (281) (2) - (559)
Impairment - (3,868) (1,132) (6) (8) - - - (5,014)
Reversal of Impairments 66 1,649 - - - 1 2 - 1,718
Reclassifications - 13,459 - 44 (7,007) 407 (380) (7,561) (1,038)
Revaluations 1,144 (63,656) (644) (23) 41 30 22 - (63,086)
At 31 March 2012 5,844 187,230 - 3,362 24,384 4,195 1,527 21,127 247,669
Depreciation
At 1 April 2011 - 65,047 317 2,566 19,753 1,879 672 - 90,234
Charged in year - 7,137 - 291 1,448 439 120 - 9,435
Disposals - - - - (271) (279) (1) - (551)
Impairment - - - (3) (7) - - - (10)
Reversal of Impairments - 25 - - - - 1 - 26
Reclassifications - 2,133 - - (2,026) - (107) - -
Revaluations - (66,966) (317) (21) 32 14 10 - (67,248)
At 31 March 2012 - 7,376 - 2,833 18,929 2,053 695 - 31,886
Carrying amount at 31 March 2012 5,844 179,854 - 529 5,455 2,142 832 21,127 215,783
Carrying amount at 31 March 2011 4,634 174,599 1,459 778 11,626 2,108 1,189 10,530 206,923
Asset financing:
Owned 5,844 179,854 - 529 5,455 2,142 832 21,127 215,783
Carrying amount at 31 March 2012 5,844 179,854 - 529 5,455 2,142 832 21,127 215,783
Land and Property Services (LPS) carried out a full valuation of land and buildings at 1 April 2011, in accordance with
the RICS Appraisal and Valuation Manual and on a componentised basis. The next full valuation of land and buildings
will be 1 April 2016.
It is intended that the Prison Service College will be disposed of once the new joint training facility is opened at
Desertcreat circa 2015. Until this time, on the basis that all lands at Millisle will be sold together, the property
at Lisnevin has been valued at its pro-rata replacement cost of £1,181k (based on LPS valuations in 2011).
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2012-2013
9. Intangible assets
Intangible assets comprise purchased computer software licences. 2011-12
Cost or valuation £000
At 1 April 2012 14,062
Additions 355
Disposals -
Impairments (256)
Impairment Reversal 174
Reclassifications 289
Revaluations 1,806
At 31 March 2013 16,430
Amortisation
At 1 April 2012 6,634
Charged in year 1,599
Disposals -
Impairments (175)
Impairment Reversal 130
Revaluations 953
At 31 March 2013 9,141
Carrying amount at 31 March 2013 7,289
Carrying amount at 31 March 2012 7,428
Asset financing:
Owned 7,289
Carrying amount at 31 March 2013 7,289
2010-11
Cost or valuation £000
At 1 April 2011 12,629
Additions 507
Disposals -
Impairments (22)
Reclassifications 1,038
Revaluations (90)
At 31 March 2012 14,062
Amortisation
At 1 April 2011 5,367
Charged in year 1,324
Disposals -
Impairments (11)
Reclassifications -
Revaluations (46)
At 31 March 2012 6,634
Carrying amount at 31 March 2012 7,428
Carrying amount at 31 March 2011 7,262
Asset financing:
Owned 7,428
Carrying amount at 31 March 2012 7,428
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and Accounts
10. Financial Instruments
2012-13 2011-12
Housing Loans £000 £000
Balance at 1 April 1,710 2,129
Additions - 15
Disposals (6) -
Repayments (530) (518)
Impairments 6 -
Revaluations 59 84
Balance at 31 March 1,239 1,710
Loans repayable within 12 months transferred to financial assets < 1 Year (313) (434)
Balance at 31 March due in more than 1 year 926 1,276
Balance at 31 March comprises:
Carrying value 1,343 1,879
Net discount at 3.5% (101) (159)
Impairment (3) (10)
Amortised amount (Fair value) at 31 March 1,239 1,710
Loans repayable within 12 months transferred to financial assets < 1 Year (313) (434)
Balance at 31 March due in more than 1 year 926 1,276
As the cash requirements of the Northern Ireland Prison Service are met through the Estimate process,
financial instruments play a more limited role in creating and managing risk than would apply to a
non-public sector body. Under IAS 39 and IFRS 7, the Northern Ireland Prison Service is required to
recognise, measure and disclose the elements of its 0% interest Housing Loan Scheme at fair value.
These elements have been identified within both Non-current and Current Financial Assets.
The carrying value has been discounted at a rate of 3.5% in line with Treasury guidelines.
The Northern Ireland Prison Service had 289 loans to officers at 31 March 2013 (300 at 31 March
2012) and does not hold any other financial assets. The Northern Ireland Prison Service is therefore
exposed to little credit, liquidity or market risk.
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11. Impairments
Under IAS 16 a revaluation surplus is credited directly to equity under the heading of revaluation surplus, unless it
reverses a revaluation decrease on the same asset previously recognised as an expense, when it should be credited to
the profit or loss to that extent.
Likewise a revaluation deficit is debited directly to expense under the heading of impairment loss whenever the
recoverable amount is below the carrying amount, unless it reverses a revaluation increase on the same asset
previously recognised as a revaluation surplus, when it should be debited to equity under the heading of revaluation
to that extent.
Net Impairments for the financial year 2012-13 across all classes of assets except land amount to £1,644k (2011-
12 £3,323k reversal of impairment). This was due to negative indexation being applied to certain classes of assets in
2012-13 and is reflected in notes 5,8 & 9 accordingly.
12. Inventories
2012-13 2011-12
£000 £000
Consumables and equipment 1,006 861
Trade stores 195 190
Fuel stores 441 494
1,642 1,545
13. Trade receivables and other current assets
(i)
Amounts falling due within one year:
2012-13 2011-12
£000 £000
Other receivables 391 270
Prepayments and accrued income 190 415
Receivables - European Funding 17 81
Recoverable VAT 773 1,297
1,371 2,063
(ii)
Amounts falling due after more than one year
Other receivables 50 10
Prepayments and accrued income - -
50 10
Included within Other receivables is £7,760 (2011-12: £9,722) that will be due to the Consolidated
Fund once the debts are collected.
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13.1 Intra-Government Balances
(i)
Amounts falling due within one year:
2012-13 2011-12
£000 £000
Balances with other Central Government Bodies 1,064 1,563
Balances with local authorities - -
Balances with NHS bodies 139 335
Balances with Public Corporations and Trading Funds - -
Balances with Bodies External to Government 168 165
(ii)
Amounts falling due after more than one year
1,371 2,063
Balances with other Central Government Bodies - -
Balances with local authorities - -
Balances with NHS bodies - -
Balances with Public Corporations and Trading Funds - -
Balances with Bodies External to Government 50 10
14. Cash and cash equivalents
50 10
2011-12 2011-12
£000 £000
Balance at 1 April (629) (3,669)
Net change in cash and cash equivalent balances (5,013) 3,040
Balance at 31 March (5,642) (629)
The following balances at 31 March were held at :
Commercial bank (5,737) (703)
Cash in hand 95 74
Balance at 31 March (5,642) (629)
The amounts above do not include Prisoners’ Private Cash Accounts or Prisoners’ Amenities Funds which are held in
public bank accounts but have been classified as Third Party Assets and are disclosed in Note 23.
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2012-2013
15. Trade payables and other current liabilities
(i)
Amounts falling due within one year
2012-13 2011-12
£000 £000
Taxation and social security - 4,598
Trade payables 683 964
Capital retentions 279 475
Other payables 113 1,593
Accruals and deferred income 32,159 27,897
Consolidated Fund Extra Receipts received
due to be paid to the Consolidated Fund 5 184
Consolidated Fund Extra Receipts receivable
due to be paid to the Consolidated Fund 2 2
33,241 35,713
(ii)
Amounts falling due after more than one year
Consolidated Fund Extra Receipts receivable
due to be paid to the Consolidated Fund 6 8
6 8
15.1 Intra-Government Balances
(i)
Amounts falling due within one year:
2012-13 2011-12
£000 £000
Balances with other Central Government Bodies 12,460 14,606
Balances with local authorities - 2
Balances with NHS bodies - -
Balances with Public Corporations and Trading Funds 58 45
Balances with Bodies External to Government 20,723 21,060
33,241 35,713
(ii)
Amounts falling due after more than one year
Balances with other Central Government Bodies 6 8
Balances with local authorities - -
Balances with NHS bodies - -
Balances with Public Corporations and Trading Funds - -
Balances with Bodies External to Government - -
6 8
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16. Provisions for liabilities and charges
2012-13
Voluntary Early Injury Litigation Hearing Equal Other Total
Early Departure Awards Loss Opportunities
Retirement Costs
Scheme
£000 £000 £000 £000 £000 £000 £000 £000
Balance at 1 April 2012 Restated 1,158 102 7,275 1,600 1,707 120 21 11,983
Provided in the year 20,285 6 80 1,533 2,135 72 79 24,190
Provisions not required written back - - - (427) (674) (71) (5) (1,177)
Provisions utilised in the year - (31) (457) (720) (292) (36) (59) (1,595)
Borrowing costs (unwinding of discount) - - 350 - - - - 350
Actuarial Loss - - 2,340 - - - - 2,340
At 31 March 2013 21,443 77 9,588 1,986 2,876 85 36 36,091
Analysis of expected timing of discounted flows*
Voluntary Early *Injury Litigation Hearing Equal Other Total
Early Departure Awards Loss Opportunities
Retirement Costs
Scheme
£000 £000 £000 £000 £000 £000 £000 £000
No later than one year 361 31 414 1,735 2,876 85 36 5,538
Later than one year and not more
than five years 12,871 46 1,707 241 - - - 14,865
Later than five years 8,211 - 7,467 10 - - - 15,688
At 31 March 2013 21,443 77 9,588 1,986 2,876 85 36 36,091
* The only cash flows shown as discounted in the table above relate to the injury awards as NIPS do not discount other provisions as the time value of money is
considered immaterial and therefore these cash flows are disclosed as undiscounted.
2011-12 Restated
Voluntary Early Injury Litigation Hearing Equal Other Total
Early Departure Awards Loss Opportunities
Retirement Costs
Scheme
£000 £000 £000 £000 £000 £000 £000 £000
Balance at 1 April 2011 - 128 6,600 2,280 579 42 22 9,651
Provided in the year 1,158 19 120 1,950 1,576 226 4 5,053
Provisions not required written back - - - (1,606) (430) (43) (1) (2,080)
Provisions utilised in the year - (45) (415) (1,024) (18) (105) (4) (1,611)
Borrowing costs (unwinding of discount) - 370 - - 370
Actuarial Loss 600 600
At 31 March 2012 1,158 102 7,275 1,600 1,707 120 21 11,983
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2012-2013
16. Provisions for liabilities and charges (continued)
Analysis of expected timing of discounted flows*
Voluntary Early *Injury Litigation Hearing Equal Other Total
Early Departure Awards Loss Opportunities
Retirement Costs
Scheme
£000 £000 £000 £000 £000 £000 £000 £000
No later than one year - 29 365 1.279 1,686 120 21 3,500
Later than one year and not
more than five years 1040 73 1,374 302 21 - - 2,810
Later than five years 118 - 5,536 19 - - - 5,673
At 31 March 2013 1158 102 7,275 1,600 1,707 120 21 11,983
* The only cash flows shown as discounted in the table above relate to the injury awards as NIPS do not discount
other provisions as the time value of money is considered immaterial and therefore these cash flows are disclosed as
undiscounted.
The provisions for liabilities and charges represent the best estimate of the amount payable at the date of the
Statement of Financial Position.
Voluntary Early Retirement Scheme
The provision for Voluntary Early Retirement Scheme (VER) costs relates to the early retirement payments arising in
respect of employees who depart early from Service under the Scheme. The provision consists of additional pension
costs due to the PCSPS (NI), which the Northern Ireland Prison Service provides for when the VER becomes binding
by establishing a provision for the estimated payments. These costs are payable over the period between early
departure and normal retirement date for the respective employees. The provision runs through to 2018-19.
Early Departure Costs
The provision for Early Departure Costs relates to additional compensation payments and flexible early retirement
payments arising in respect of employees who depart early from service. The provision consists of additional pension
costs due to the PCSPS (NI), which the Northern Ireland Prison Service provides for when the early retirement
programme becomes binding by establishing a provision for the estimated payments. These costs are payable over
the period between early departure and normal retirement date for the respective employees. The provision runs
through to 2015-16.
Injury Awards
From 1 April 2006 all benefits payable under the Civil Service Injury Benefit Scheme (CSIBS) (Northern Ireland)
relating to the Northern Ireland Prison Service are charged to the Northern Ireland Prison Service by Civil Service
Pensions (Northern Ireland) on a monthly basis. The allowance is payable to the former employee for life. An
estimated life expectancy of 70 years has been applied. Provision is made for the costs of providing injury awards to
employees based on the current number of injury awards, and also on estimated life expectancy of these pensioners.
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16. Provisions for liabilities and charges (continued)
This year the injury awards were valued under International Accounting Standard (IAS) 19 Employee Benefits by
Government Actuary’s Department (GAD). IAS 19 requires the employer to also value the expected injury awards for
active members, who are currently uninjured but who may become injured in the future, and include the value in the
Statement of Accounts. See Note 24 for the restatement of the 2011-12 provision.
The split of the provision is shown below;
2012-13 2011-12
Liability in respect of; £’000 £’000
Active members (2,110) (1,850)
Pensions in payment (Injury Awards) (7,478) (5,425)
(9,588) (7,275)
Litigation
The litigation provision relates to legal claims against the Northern Ireland Prison Service by staff, prisoners and third
parties for injuries and other damages including fair employment and industrial tribunal cases. The provision reflects
all known claims where it is considered that it is probable that the claim will be successful and the amount can be
reliably estimated. The timing of the settlement of claims depends on the circumstances of each case.
Other
The other provisions as at 31 March 2013 include a tax provision. The tax provision relates to an estimated HM
Revenue and Customs liability arising from Additional Housing Cost payments to prison officers under the Assisted
Home Removals Scheme. The tax provision will be settled during the 2013-14 financial year.
17. Capital commitments
Contracted capital commitments at 31 March 2013
not otherwise included in these accounts:
2012-13 2011-12
£000 £000
Property, plant and equipment 110 2,420
Intangible assets 25 185
135 2,605
100

2012-2013
18. Commitments under leases
18.1 Operating leases
Total future minimum lease payments under operating leases
are given in the table below for each of the following periods.
Obligations under operating leases comprise:
2012-13 2011-12
£000 £000
Buildings
Not later than one year 190 168
Later than one year and not later than five years - -
Later than five years - -
190 168
Other
Not later than one year 3 6
Later than one year and not later than five years - -
Later than five years - -
3 6
18.2 Finance leases
N.I. Prison Service does not presently hold any finance leases
19. Grant Commitments
At the year end the Northern Ireland Prison Service is committed to the following grant payments to the Northern
Ireland Prison Service Trust:
2012-13 2011-12
£000 £000
Not later than one year 289 294
Later than one year and not later than five years 284 573
Later than five years - -
573 867
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20. Contingent liabilities disclosed under
IAS 37
At the year end the Northern Ireland Prison Service
has estimated contingent liabilities of £672k
(2011-12: £856k) in respect of litigation claims
against the Northern Ireland Prison Service. These
claims relate to legal claims against the Northern
Ireland Prison Service by staff, prisoners and third
parties for injuries and other damages including fair
employment and industrial tribunal cases. They have
not been provided for in the financial statements as
the Northern Ireland Prison Service considers that it
is not probable that they will be successful.
A contingent liability has also arisen in 2012-13
with respect to 27 members of staff who have
applied to leave the service under the terms of the
Voluntary Early Retirement (VER) Scheme. These
staff have been advised that their applications are
still under consideration but had not been selected
for departure as at this financial year end. No
obligation has arisen for these employees and no
provision has been made for potential payments due
to these individuals on departure from the service
in the financial statements of NIPS in the 2012-13
financial year. They have been advised that the VER
scheme panel will consider their applications again
in due course.
Until such times as this review has taken place and
some or all of those staff have been offered early
retirement NIPS will disclose this possible obligation
as a contingent liability; however the amount of
the obligation cannot be measured with sufficient
reliability.
21. Losses and special payments
(a) Losses
During 2012-13 losses payments were made in 9
cases (2011-12: 7). The total amount paid in these
cases was £6k (2011-12: £10k).
(b) Special Payments
Included in the provision note (Note 16) are special
payments. Amounts utilised during the year
included 109 compensation payments (2011-12:
133) totalling £560k (2011-12: £593k). There were
no individual payments exceeding £250k.
(c) Other notes
Over claiming and subsequent overpayments to a
single building contractor have been identified over
a five year period since 2002. Following a review of
internal procedures in 2007 the over claiming was
identified and remedial action taken immediately.
This case is currently the subject of arbitration
proceedings to recover the monies. (A total of
£130k is being retained on invoices submitted until
resolution).
A wider review identified two other contractors
who similarly have been over claiming on invoices
over a five year period since 2002. A total of £314k
is being withheld by the Northern Ireland Prison
Service on invoices submitted until resolution. DFP
approved the retention of unpaid invoices in full
settlement of both contractor cases. One contractor
has agreed with this approach and the case against
them is now closed. The remaining contractor
declined to settle on the terms offered and the case
is now subject to ongoing legal action to conclude
matters.
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2012-2013
Whilst the Northern Ireland Prison Service expects
to recover the monies involved, the two cases
are being reported as losses in accordance with
Managing Public Money until such time as the funds
have been received.
The Northern Ireland Prison Service does not hold
general insurance, but instead charges expenditure
in connection with uninsured risks as incurred.
22. Related Party Transactions
In addition the Department of Justice has had
various material transactions with other government
departments and other central government bodies.
Most of these transactions have been with the
Department of Health, Social Services and Public
Safety, the Department of Finance and Personnel
and related Agencies.
No board member, key manager or other related
parties has undertaken any material transactions
with the Northern Ireland Prison Service.
The Northern Ireland Prison Service is an Executive
Agency of the Department of Justice (Northern
Ireland), which was regarded as a related party.
During the year the Agency has had various material
transactions with the Department of Justice
(Northern Ireland), and with other entities for which
the Department of Justice (Northern Ireland) is the
parent Department, viz:
- Forensic Science Northern Ireland
- The Northern Ireland Courts and Tribunals service
- The Compensation Agency
- The Youth Justice Agency
- The Northern Ireland Policing Board
- Police Service of Northern Ireland
- The Probation Board for Northern Ireland
Amounts totalling £607k were paid to Northern
Ireland Water in monthly water and sewage charges
in respect of all the prison establishments. The
balance of monies owing at 31 March 2013 was £nil
(Donald Price is a Non-Executive Director of this
organisation).
Amounts totalling £173k were paid to G4S (Phil
Wheatley and Paul Leighton provide consultancy
services to G4S). The balance of monies owing at
31 March 2013 was £2k.
Great care is taken to ensure that any work Phil
Wheatley, a non executive director or Paul Leighton
carry out in their respective roles as consultants to
G4S does not relate to NIPS.
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23. Third Party Assets
There is a Prisoners’ Private Cash (PPC) facility for the lodgement of prisoner earnings and funding of tuck shop
purchases. When prisoners are discharged they are paid in full the balance on their PPC account. The average
prisoner private cash balance at 31 March 2013 was £81 (2011-12: £94).
Each prison establishment administers a Prisoners’ Amenities Fund. Payments from the fund are used for the
welfare/benefit of all prisoners. Fund receipts include income from the sale of tuck shop items, phone credits and
donations.
1 April Gross Gross 31 March
2012 Inflows Outflows 2013
£’000 £’000 £’000 £’000
Monetary assets such as bank balances
and balances on deposit
Prisoners’ Private Cash Accounts 169 3,457 (3,473) 153
Prisoners’ Amenities Funds 176 183 (130) 229
345 3,640 (3,603) 382
24. Corresponding Amounts
During the financial year 2012-13 the following changes took place:
Provisions
This year the injury awards were valued under IAS 19 Employee Benefits. IAS 19 requires the employer to value the
expected injury awards for active members who are currently uninjured but who may become injured in the future,
and include the value in the Statement of Accounts.
This amounts to a change in accounting policy which has been treated as a prior year adjustment in line with IAS 8
and prior year comparative figures have been restated accordingly from the earliest opportunity 1 April 2011. These
adjustments are reflected in the main statements and in notes 5, 16 and 24 to these financial statements.
The impact of the above adjustments on corresponding amounts in the 2011-12 financial statements are
summarised in the tables overleaf.
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2012-2013
(i)
Statement of Comprehensive Net Expenditure
2011-12 Prior 2011-12
Published period Restated
Resource
Adjustment
Accounts
£’000 £’000 £’000
Administration Costs
Staff costs 9,198 - 9,198
Other administrative costs 5,526 - 5,526
Operating income (53) - (53)
Programme Costs
Staff costs 80,305 - 80,305
Voluntary Early Retirement Scheme
Staff and Programme costs 22,710 - 22,710
Programme costs 40,293 (410) 39,883
Grant 302 - 302
Income (2,881) - (2,881)
Totals 155,400 (410) 154,990
Net Operating Cost 155,400 (410) 154,990
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(ii)
Statement of Financial Position
2011-12 PPA 2011-12
Published Provisions Restated
Resource
Accounts
£’000 £’000 £’000
Non-current assets
Property, plant and equipment 215,783 - 215,783
Intangible assets 7,428 - 7,428
Trade and other receivables 10 - 10
Financial assets 1,276 - 1,276
Total non-current assets 224,497 - 224,497
Current assets
Inventories 1,545 - 1,545
Trade and other receivables 2,063 - 2,063
Financial assets 434 - 434
Cash and cash equivalents 74 - 74
Total current assets 4,116 - 4,116
Total assets 228,613 - 228,613
Current liabilities
Cash and cash equivalents (703) - (703)
Trade and other payables (35,713) - (35,713)
Provisions (3,500) - (3,500)
Total current liabilities (39,916) - (39,916)
Non-current assets less net
current liabilities 188,697 - 188,697
Non-current liabilities
Provisions (6,632) (1,850) (8,482)
Other payables (8) (8)
Total non-current liabilities (6,640) (1,850) (8,490)
Assets less liabilities 182,057 (1,850) 180,207
Taxpayers’ Equity
General fund 141,564 (1,850) 139,714
Revaluation reserve 40,493 - 40,493
Total taxpayers’ equity 182,057 (1,850) 180,207
106

2012-2013
(ii)
Statement of Financial Position (continued)
2010-11 PPA 2010-11
Published Provisions Restated
Resource
Accounts
£’000 £’000 £’000
Non-current assets
Property, plant and equipment 206,923 - 206,923
Intangible assets 7,262 - 7,262
Trade and other receivables 13 - 13
Financial assets 1,738 - 1,738
Total non-current assets 215,936 - 215,936
Current assets
Inventories 1,480 - 1,480
Trade and other receivables 2,167 - 2,167
Financial assets 391 - 391
Cash and cash equivalents 52 - 52
Total current assets 4,090 - 4,090
Total assets 220,026 - 220,026
Current liabilities
Cash and cash equivalents (3,721) - (3,721)
Trade and other payables (15,943) - (15,943)
Total current liabilities (19,664) - (19,664)
Non-current assets less net
current liabilities 200,362 - 200,362
Non-current liabilities
Provisions (7,991) (1,660) (9,651)
Other payables (10) - (10)
Total non-current liabilities (8,001) (1,660) (9,661)
Assets less liabilities 192,361 (1,660) 190,701
Taxpayers’ Equity
General fund 151,059 (1,660) 149,399
Revaluation reserve 41,302 - 41,302
Total taxpayers’ equity 192,361 (1,660) 190,701
25. Events after the reporting period
There are no events after the reporting period to disclose which would have a material affect on the true and fair
view of these financial statements.
Date authorised for issue
The Accounting officer authorised these financial statements for issue on 20 June 2013
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Appendices
In addition to the information included in these appendices, the Northern Ireland Statistics and Research
Agency publish a digest of Prisons Statistics on an annual basis.
This information can be accessed at: http://www.nisra.gov.uk
APPENDIX 1
PRISON POPULATION 2012-13 1
Establishment Lowest number Highest number Average number
of prisoners held of prisoners held of prisoners held
Magilligan 501 552 533
Maghaberry 947 1,065 1,011
Hydebank Wood
• All young males 147 200 174
• Young Offenders 147 195 173
• Juveniles 1 6 2
Hydebank Wood
Prison Females 49 75 58
2009-10 2010-11 2011-12 2012-2013
Lowest number of
prisoners held overall *1,336 *1,402 *1,619 *1665
Highest number of
prisoners held overall *1,542 *1,644 *1,830 *1822
Average number of
prisoners held overall 1,449 1,507 1,729 *1776
1
Figures are based on information taken from the Prison Database
* The totals of highest and lowest recorded prison population figures differ from the sum for individual prison
establishments due to differences in the time period when high and low numbers were recorded.
108

2012-2013
APPENDIX 2
AVERAGE PRISON POPULATION BY TYPE OF PRISONER 2012-13 2
REMANDS SENTENCED FINE IMMIGRATION TOTAL**
TO IMMEDIATE DEFAULTERS DETAINEES
CUSTODY
MALE 511 1,185 26 1 1,723
FEMALE 17 39 3 0 59
TOTAL 528 1,224 29 1 1,782
2
Figures are based on weekly snapshots taken every Thursday and as such the average figures from this table
are slightly different from the figures in Appendix 1, which are based on daily population figures.
** Totals may not sum due to rounding.
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APPENDIX 3
NUMBERS AND RECRUITMENT OF STAFF
RECRUITMENT AND SELECTION
CODE OF PRACTICE
The Northern Ireland Prison Service has systems
in place to ensure that selection for appointment
is made in accordance with the Civil Service
Commissioners for Northern Ireland Recruitment
Code and NICS Policies and Procedures.
All applicants are considered systematically against
the organisation’s recruitment practices and in line
with published suitability criteria. The recruitment
systems are evaluated on a regular basis to ensure
they meet with the Commissioners’ guidelines
and are in line with best practice as recommended
by the Chartered Institute of Personnel and
Development and the Equality Commission.
No appointments were made under Regulation 3 of
the Commissioners’ General Regulations.
The statistical summary below outlines applicants’
religious affiliation and gender for the following
recruitment campaigns: Deputy Governor of
Hydebank Wood Young Offender’s Centre and Prison
and Governor in Charge of Hydebank Wood Young
Offender’s Centre and Prison, which were advertised
by the Prison Service during this reporting period.
Also included is a breakdown of the Custody Officer
Competition which ran in February 2012 and was
not included in last year’s report as the information
was not available at that time.
RELIGIOUS
TOTAL NUMBER OF
AFFILIATION
APPLICANTS BETWEEN
(1/04/12 – 31/03/13)
Protestant 3208
Roman Catholic 1244
Non determined 453
Not Known 4
TOTAL 4909
GENDER
Male 3359
Female 1550
TOTAL 4909
The 4909 applicants detailed above relate to
the Custody Officer competition advertised in
February 2012 and two recruitment competitions
advertised between 1 April 2012 and 31 March
2013, from which appointments from one of those
competitions have been made at 31 March 2013.
RELIGIOUS
TOTAL NUMBER
AFFILIATION
OF APPOINTMENTS
MADE BETWEEN
(01/04/12 – 31/03/13)
Protestant 184
Roman Catholic 39
Non determined 20
TOTAL 243
GENDER
Male 162
Female 81
TOTAL 243
110
We have not included a breakdown of the recent
Prison Custody Officer and Custody Prison Officer
competitions which ran in March 2013 as the
information is not available at this time.
The statistical summary also outlines the religious
affiliation and gender of those appointed during the
period of this report.
From the total number of appointments made the
proportions were: Protestant 75.7%, Roman Catholic
16% and Non Determined 8.2%. However, these
appointments relate to two recruitment campaigns
which both commenced prior to 1 April 2012.

2012-2013
APPENDIX 4
CORRESPONDENCE RECEIVED
Category of correspondence
Number received
Year ended 31 March 2013
Correspondence Cases (1 April 2012 – 31 March 2013) 190
Director General Cases (1 April 2012 – 31 March 2013) 14
Invitation Cases (1 April 2012 – 31 March 2013) 23
Locally Answered (1 April 2012 – 31 March 2013) 54
ASSEMBLY QUESTIONS
Number received
Assembly Questions Written
Year ended 31 March 2013 583
(Including part inputs)
Assembly Questions Oral
Year ended 31 March 2013 44
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APPENDIX 5
FREEDOM OF INFORMATION AND DATA PROTECTION METRICS
Freedom of Information Act 2000
Summary of Cases Received – April 2012 – March 2013
Total No Total Number Refusal Late But Still Within Extended
of Requests Answered Notice Closed 20 Day
Received on Time Issued Timescale
193 186 42 4* 3 1
*Delays were due to: 1 case required Ministerial input; 3 cases due to retrieval of information.
Data Protection Act 1998
Summary of Cases Received – April 2012 – March 2013
Total No of Total Number Total No Late but Still within
Cases Received Processed within outside Closed 40 Day
40 Days 40 Days Timescale
223 222 0 0 1
Percentage of Total Requests Received Answered Within Time Limit
• 99.04%
112

2012-2013
APPENDIX 6
DEFINITIONS
Approved or accredited activities:
Any activities and/or programmes, which have been
verified by an internal approval panel or external
accreditation body.
An assault:
When the victim has sustained an injury resulting
in his/her death, or his/her detention in an outside
hospital as an inpatient, or any of the following
injuries whether or not detained in hospital:
fractures, concussion, internal injuries, crushing,
severe cuts or lacerations, severe bruising, burns or
scalds, or severe general shock requiring medical
treatment.
Certified Normal Accommodation (CNA):
Accommodation which meets the Prison Service’s
own measurable standards for the provision of good
decent accommodation for the secure and humane
confinement of persons who have been given into
custody by the courts.
Constructive activity:
All pursuits that play a part in the enhancement
of the individual’s skills, knowledge, attitudes and
behaviour, or contribute to the reduction in the
likelihood of re-offending (and including activities
such as orderly duties, use of gym, visits, education
and attendance at court). For separated prisoners
time out of cell will count as constructive activity.
Prisoner:
Any person who has been committed to a prison or
young offenders centre by the courts.
Category A prisoner
A prisoner whose escape would be highly dangerous
to the public or the police or the security of the
state, no matter how unlikely that escape might be,
and for whom the aim of the Prison Service must be
to make escape impossible.
Category B prisoner
A prisoner for who the very highest conditions of
security are not necessary, but for who escape must
be made very difficult.
Category C prisoner
A prisoner who cannot be trusted in open
conditions, but who does not have the resources or
the will to make a determined escape attempt.
Category D prisoner
A prisoner who can be reasonably trusted in open
conditions.
Regime
The regime describes the activities, opportunities
and privileges available to prisoners on a daily basis.
Separated conditions
The regime in Maghaberry in which loyalist and
republican prisoners who are members or supporters
of proscribed organisations and who meet the other
criteria are accommodated separately.
113

ANNUAL
REPORT
and Accounts
APPENDIX 7
ADDRESSES AND CONTACT NUMBERS
PRISON SERVICE HEADQUARTERS
Dundonald House
Upper Newtownards Road
BELFAST
BT4 3SU
Telephone: (028) 9052 2922
MAGILLIGAN PRISON
Point Road
LIMAVADY
Co Londonderry
BT49 0LR
Telephone: (028) 7776 3311
PRISON SERVICE COLLEGE
Woburn House
MILLISLE
Co Down
BT22 2HS
Telephone: (028) 9186 3063
HYDEBANK WOOD
YOUNG OFFENDERS’ CENTRE
AND PRISON
Hospital Road
BELFAST
BT8 8NA
Telephone: (028) 9025 3666
MAGHABERRY PRISON
Old Road
Ballinderry Upper
LISBURN
Co Antrim
BT28 2NF
Telephone: (028) 9261 1888
E-mail: info@niprisonservice.gov.uk
Web site: www.dojni.gov.uk/ni-prison-service
General Enquiry Line
with Text Facilities: 028 9052 2922
A braille version of this document is available on
request.
114

2012-2013
Notes
115

ANNUAL
REPORT
and Accounts
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116
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