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

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.
77