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

ANNUAL
REPORT
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.
74