MPA - statement of accounts

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28Notes to the Financial Statements4. Employment CostsThe Authority has disclosed below the number ofemployees whose taxable remuneration, excludingpension contributions, was £50,000 or more, in bandsof £10,000:5. Pension CostsAs part of the terms and conditions of employmentthe Authority offers retirement benefits for PoliceOfficers and Police Staff. A full description of bothschemes is at notes L and M to the Balance Sheet.Remuneration Number of Employeesband £ 2007-08 2006-0750,000-59,999 6,375 5,88960,000-69,999 1,866 1,59170,000-79,999 394 42480,000-89,999 126 11190,000-99,999 40 38100,000-109,999 21 14110,000-119,999 14 11120,000-129,999 5 1130,000-139,999 5 8140,000-149,999 3 1150,000-159,999 2 1160,000-169,999 2 3170,000-179,999 2 4180,000-189,999 1 1190,000-199,999 1 0200,000-209,999 1 1210,000-219,999 1 0220,000-229,999 0 0230,000-239,999 0 0240,000-249,999 0 1250,000-259,999 1 0Note: banding is based on all taxable remuneration,excluding pension costs, paid in the year rather thanthe annual salary. Taxable remuneration includesovertime and may also include back dated payawards, which relate to previous years but wereactually paid in the years in question.Employee NumbersActual full-time equivalent employee numbers arecategorised as follows:Number of Employees2007-08 2006-07Police Officers 31,398 31,074Police Staff 14,070 13,980PCSO 4,226 3,682Traffic Wardens 294 310Non distributed costs represents the additionalexpenditure borne by the Authority in respect of policeofficers’ past service costs (as required by FRS 17)and police staff early retirement cost.Police OfficersIn the year to 31 March 2008, the net costs ofpensions and other benefits amounted to £500.1million (£499.4 million notional pension costs and £0.7million other ancillary costs), representing 45.9% ofpensionable pay.A separate pension scheme, the 2006 Police OfficerPension Scheme (NPPS) has been created for policeofficers. This operates in parallel to the present PolicePensions Scheme (PPS). The accounts for both NPPSand PPS can be viewed on pages 47 and 48.In accordance with FRS 17 requirements, a reserveshowing the total liability of the Police Officer PensionFund is included in the MPA Balance Sheet. The MPApays employer contributions at a rate of 24.6% ofpensionable salary into the Fund. The charge in theIncome and Expenditure Account that the Authority isrequired to make is based on the actuarially calculatedcost.The following transactions have been made in theIncome and Expenditure Account during the year:2007-08£’000Current service cost 499,400Past service costs 700Interest cost 791,900Movement in pensions reserve (966,827)Contributions to pension fund 325,173• Current and past service costs have beenproduced by actuaries (see note L to the balancesheet).• Interest on pension liability represents the expectedincrease during the year in the present value of thescheme liabilities because the benefits are one yearcloser to settlement.
29• Pension reserve movement represents a netincrease in the pensions reserve as analysed in theStatement of Total Recognised Gains and Losses.• Contributions to pension fund is the actual amountpaid by the Authority on behalf of Officers duringthe year to the Pension Fund.Note L to the Balance Sheet contains details of theassumptions made in estimating the figures includedin this note. The notes to the Statement of TotalRecognised Gains and Losses on page 24 shows thereasons for the increase in the pension reserve.Police StaffIn the year to 31 March 2008, the net costs ofpensions (£104.7 million) and other benefits(£2.9million) amounted to £107.6 million, representing20.0% of pensionable pay.Using information provided by PCSPS, the pensionliabilities of the Scheme are described in detail in noteM to the balance sheet.6. LeasesLand and BuildingsFollowing a review of two property leases with originallease terms of 99 years, the MPA now recognises thatboth property leases are finance, not operating leases.The properties are Charing Cross Police Station andChalk Farm Estate and lease expiry dates are April2077 and March 2034 respectively. In previous years,the ground rents payable for these properties wereincorrectly classified as operating leases, but are nowdisclosed as finance leases on page 30. Bothproperties have always been capitalised in previousyears based on the valuations provided by the externalsurveyor for property held on long leases. The groundrents are considered immaterial, and as a result, theMPA has never recognised a long-term liability on theBalance Sheet for the obligation to pay ground rents.As a result of this change, no further accountingentries have been made; it is only a change indisclosure.office at the community centre at LoughboroughJunction in exchange for incurring refurbishment costsof £0.549 million to bring the property up to a properstandard of accommodation. Only a peppercornground rent is payable.The following values for land and buildings of theabove three assets held under finance leases by theMPA, are accounted for as part of Tangible FixedAssets.Land and Building£’000Value as at 1 April 2007 57,389Revaluations 1,000Impairment (250)Depreciation (900)Value as at 31 March 2008 57,239There are also a number of long-term ground leasesfor land, on which the MPA has constructed policestations or blocks of residential flats. No long-termliability for the obligation relating to these groundleases is recognised on the Balance Sheet as theamount is not material, and the lease payments arenot split between capital and interest elements. Theland (and building) values are accounted for asTangible Fixed Assets at current value.In the year to 31 March 2008, the Authority spent£43.6 million on operating leases for property (£26.7million in 2006-07) and £1.6 million on operatingleases for vehicles (£0.3 million in 2006-07). In thesame year the Authority received £17.3 million inrespect of operating leases where it is the lessor(£12.4 million in 2006-07).The Authority spent £0.02 million on finance leases forland and buildings (£0.02 million in 2006-07). Inpractice this expenditure is for ground leases only.Rental income was received for residential flats, whichwere constructed by the MPA on the leased land, andare considered to be not material.Notes to the Financial StatementsThe MPA recently entered into a lease agreement fora third property in June 2005 for a period of 125 years.This agreement enabled the MPA to establish a policeOutstanding commitments in respect of all leases at31 March 2008 are due to expire as follows:
Page 9 and 10: 7Statement of Responsibilities for
Page 11 and 12: 9Within the MPS the corporate strat
Page 13 and 14: 11Within the MPS the risk managemen
Page 15 and 16: 13The practical implementation of t
Page 17 and 18: 15• Internal AuditIn maintaining
Page 19 and 20: 17Governance issuemanagement across
Page 21 and 22: 19kept to manage the accounting pro
Page 23 and 24: 21Land and BuildingsCategoryLandBui
Page 25 and 26: 23Income and Expenditure AccountFin
Page 27 and 28: 25Balance SheetThe Balance Sheet sh
Page 29: 27Notes to the Financial Statements
Page 33 and 34: 3111. S102 Greater London Authority
Page 35 and 36: 3318. Minimum Revenue ProvisionThe
Page 37 and 38: 35Sources of Capital Finance2007-08
Page 39 and 40: 37K. Third Parties’ MoniesThe Aut
Page 41 and 42: 39L. Police Pensions LiabilitiesAs
Page 43 and 44: 41Accommodation strategy/Propertyre
Page 45 and 46: 43Capital Adjustment AccountThe Cap
Page 47 and 48: 45The fair value is more than the c
Page 49 and 50: 47U. Analysis of Net Debt (liquid r
Page 51 and 52: 49GlossaryGlossary of TermsBudgetA

MPA - statement of accounts

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