Parliamentary

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3. Statement of Accounts
A Introduction
1 The statutory framework governing
IPSA’s activities is set out on in Section
4. The financial statements on pages 50
to 70 cover the financial year ending 31
March 2012. The IPSA accounts have
been prepared to meet the requirements
of the Parliamentary Standards Act 2009
and in accordance with the Government
Financial Reporting Manual 2011-12, as
specified in the direction issued by HM
Treasury.
B Management Commentary
2 The IPSA Estimate consists of four
subheads:
• Subhead A which includes programme
funding for MPs’ salaries, MPs’ staff
salaries and MPs’ expenses. This
subhead was substantially under-spent
to the order of 15% of Estimate in
2011-12. This was due to the Estimate
being based on MPs taking up their
full budgets. For future years, the
Estimate will be based on expected
uptake.
• Subhead B which contains IPSA’s
operational costs, including those of
the Compliance Officer. This subhead
was under-spent by 7% during
2011-12, due to delays to planned
accommodation changes.
• Subhead C was created by the
Speaker’s Committee for IPSA in
2011-12 to hold an unallocated
provision. The Main Estimate for
2011-12 held an unallocated provision
of £16.572m. In December 2012, IPSA
brought forward a Supplementary
Estimate to use the whole of
this reserve and transferred it to
Subhead A.
• Subhead D was introduced as a result
of the Clear Line of Sight (CLoS)
reforms to central government
accounting. This subhead funds
provisions and impairments which
carry over across the year end.
Going concern note
3 The Statement of Financial Position at
31 March 2012 shows a negative
taxpayers’ equity. The future financing of
IPSA is met by grants of supply approved
annually by Parliament and there is no
reason to believe that future approvals
will not be forthcoming. Therefore, it is
considered appropriate to adopt a going
concern basis for the preparation of the
IPSA accounts.
Investment and funding
4 As an independent public body, IPSA
is accountable to Parliament for its
expenditure. Parliamentary approval for
its 2011-12 spending plans was sought
through its Supply Estimate (HC1340)
presented to the House of Commons,
specifying the estimated expenditure
and requesting the necessary funds
to be voted. In 2011-12 IPSA sought a
Supplementary Estimate (HC1783) to
draw down the unallocated provision in
the Supply Estimate in case expenditure
as a whole exceeded the planned budget.
IPSA drew down voted funds during the
year from the Consolidated Fund as
required.
IPSA Annual Report and Accounts 2011-2012