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

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.
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