Notes to the Accounts

1. Statement of Accounting Policies and Accounting Convention

The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and UK adopted international accounting standards. The 2024/25 Government Financial Reporting Manual (FReM) applies International Financial Reporting Standards (IFRS), adapted or interpreted for the public sector. Where the FReM permits a choice of accounting policy, the accounting policy which is judged to be most appropriate to the particular circumstances of the UK Statistics Authority for the purpose of giving a true and fair view has been selected. The particular policies adopted by the Authority are described below. They have been applied consistently in dealing with items that are considered material to the accounts. 

These accounts have been prepared under the historical cost convention modified to account for the revaluation of property, plant and equipment and in-house software. 

The Authority is primarily resourced by funds approved by the House of Commons through the annual Appropriation Act. Resources are drawn down each month to meet expenditure requirements and are credited to the General Fund. The functional currency for the UK Statistics Authority is pounds sterling. 

Going concern

The Authority anticipates continued funding to promote and safeguard the production of official statistics that serve the public good, as evidenced by the future financing of the Authority’s liabilities, annually approved by Parliament via the passing of the Supply and Appropriation (Main Estimates) Act and the Supply and Appropriation (Anticipation and Adjustments) Act. This is sufficient evidence that the Authority remains a going concern in accordance with the continuity of service principle outlined within the FReM. The Authority anticipates future Spending Review budgets to be agreed in due course and there is no reason to believe that future Estimate approvals will not be forthcoming. Furthermore, the Authority has received its settlement through the multi-year Spending Review 2025 which sets organisational budgets across government to 2028/29. 

Property, plant and equipment

Property, plant and equipment (PPE) assets include computers, and associated equipment, office machinery, and furniture and fittings. 

PPE assets are re-valued from the beginning of the quarter of acquisition.  These assets are stated at current costs by using indices taken from the Authority’s publication Price Index Numbers for Current Cost Accounting. 

PPE assets must exceed the capitalisation threshold of £5,000 (excluding VAT) and have a life greater than one year. 

Intangible assets

Intangible assets consist of software licenses and in-house developed software.  Software licenses are not re-valued and are included at depreciated historical cost. 

In-house developed software is stated at current costs by using indices developed by the Office for National Statistics (ONS) National Accounts Division. 

In House Developed Software assets must exceed a capitalisation threshold of £50,000 (excluding VAT) and have a life greater than one year. 

Software Licences must exceed a capitalisation threshold of £5,000 (excluding VAT) and have a life greater than one year. 

A contract that provides access to cloud-based software is generally expensed. However, in some limited circumstances it could be determined the Authority controls a software intangible asset which will require capitalisation. Features of a cloud computing arrangement that may indicate that the Authority obtains control of a software intangible asset include: 

• exclusive rights to use the software or, 
• ownership of the intellectual property for customised software – i.e. the supplier cannot make the software available to other customers 

Depreciation and amortisation

Depreciation is calculated so as to write off the re-valued cost of assets over the estimated useful economic life on a straight-line basis. An asset disposal is actioned when the economic benefits have been fully realised. 

All Intangible assets are reviewed annually for impairment.  

Assets in the course of construction

Assets under construction are capitalised as appropriate where meeting the requirements of IAS 16 or IAS 38 and transferred out of assets under construction into the relevant category of PPE or intangibles on completion. 

Research and development

The Authority undertakes certain research into statistical and survey methodology. Costs are charged to the Statement of Comprehensive Net Expenditure as they arise. 

As required under European System of Accounts (ESA) 10 Research and Development costs are charged to Capital within the Statement of Parliamentary Supply. The reconciliation between the Statement of Comprehensive Net Expenditure and the Statement of Parliamentary Supply is shown at SOPS Note 2. 

Revenue from contracts with customers

Under IFRS 15, key judgements in determining the recognition and timing of revenue recognition are identified at the point when: 

• control of goods and services is transferred under contractual arrangements and services to the customer, and
• performance obligations are satisfied, whether at a point in time or over time. 

Most of the Authority’s performance obligations relate to services satisfied over time and driven by costs incurred to ensure continuation of survey related services. Other contracts will be explicit in stating performance obligation milestones, where this exists revenue is recognised over time when those obligations are met.  

The Authority applies the five-stage model for the recognition of revenue from contracts with customers: 

• Step 1 – Identify the contract(s) with a customer.
• Step 2 – Identify the performance obligations in the contract.
• Step 3 – Determine the transaction price.
• Step 4 – Allocate the transaction price to the performance obligations in the contract.
• Step 5 – Recognise revenue when the Authority satisfies a performance obligation. 

The application of the model depends on the facts and circumstances presented in a contract with a customer and requires the exercise of judgement. Revenue related to performance obligations recognised over time as the service is rendered is measured by reference to the input (resources consumed in satisfying a performance obligation) method. 

Leases

IFRS 16 “Leases” is applied in accordance with the requirements of the FReM and replaces IAS 17; this introduces a single lessee accounting model that requires a lessee to recognise assets and liabilities for all leases (apart from the exemptions included below). 

In respect of lessees, IFRS 16 removes the distinction between operating and finance leases and introduces a single accounting model that requires a lessee to recognise (‘right of use’) assets and lease liabilities. 

The definition of a contract is expanded to include intra-UK government agreements where non-performance may not be enforceable by law. This includes, for example, Memorandum of Terms of Occupation (MOTO) agreements.  

The Authority has elected not to recognise right of use assets and lease liabilities for the following leases: 

• intangible assets;  
• non-lease components of contracts where applicable; 
• low value assets (these are determined to be in line with capitalisation thresholds on Property, Plant and Equipment) 
• leases with a lease term of 12 months or less.

At inception of a contract, the Authority assesses whether a contract is, or contains, a lease. A contract is, or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time. This includes assets for which there is no consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Authority assesses whether: 

• The contract involves the use of an identified asset; 
• The Authority has the right to obtain substantially all of the economic benefit from the use of the asset throughout the period of use; and
• The Authority has the right to direct the use of the asset.  

The Authority assesses whether it is reasonably certain to exercise extension options or not to exercise break options at the lease commencement date. The Authority reassesses this if there are significant events or changes in circumstances, within its control that were not anticipated at the lease commencement.  

Right of use assets

The Authority recognises a right of use asset and lease liability at the commencement date. The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for initial direct costs, prepayments or incentives, and costs related to restoration at the end of a lease.  

The right of use asset is depreciated using the straight-line method from the commencement date to the end of the lease term. Whilst the authority applies a straight-line depreciation method to its right of use assets, a periodic review is undertaken to adjust and align depreciation to any variable lease payments over time. 

The Authority applies IAS 36 Impairment of Assets to determine whether the right of use asset is impaired and to account for any impairment loss identified. 

Lease liabilities

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate provided by HM Treasury (HMT) for that calendar year. The HMT discount rates were 0.95% for 2022, 3.51% for 2023, 4.72% in 2024 and 4.81% in 2025. 

The lease payment is measured at amortised cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in the index or rate, if there is a change in the Authority’s estimates of the amount expected to be payable under a residual value guarantee, or if the Authority changes its assessment of whether it will exercise a purchase, extension, or termination option.

Lease payments included in the measurement of the lease liability comprise the following:  

• Fixed payments, including in-substance fixed payments; 
• Variable lease payments that depend on an index or a rate, initially measured using the index rate as at the commencement date;  
• Amounts expected to be payable under a residual value guarantee;  
• The exercise price under a purchase option that the Authority is reasonably certain to exercise, lease payments in an optional renewal period if the Authority is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Authority is reasonably certain not to terminate early.

When the lease liability is re-measured, a corresponding adjustment is made to the right of use asset or recorded in the SoCNE if the carrying amount of the right of use asset is zero.  

Provisions

The Authority provides for legal or constructive obligations which are of uncertain timing or amount at the Statement of Financial Position date on the basis of best estimate of the expenditure required to settle the obligation. Where the effect of time value is significant, provisions are discounted using the discount rates published by HM Treasury. These provisions are reviewed each year in accordance with IAS 37. 

IAS 37 defines and specifies the accounting for and disclosure of provisions, contingent liabilities, and contingent assets. 

The Authority recognises a provision if it is probable that an outflow of cash or other economic resources will be required to settle the provision. If an outflow is not probable, the item is treated as a contingent liability. 

Trade receivables

Trade receivables are recognised at their amortised cost less expected credit losses in accordance with IFRS 9. Expected credit losses are based on the Authority’s expectation of recovery at the year end. 

Staff costs

Under IAS19 Employee Benefits, all staff costs must be recorded as an expense as soon as the organisation is obliged to pay them. This includes the cost of any untaken leave at the year end. 

Staff costs include wages and salaries, social security costs and pension costs.  

Cash and cash equivalents

The Authority holds balances of cash and cash equivalents in a readily realised form; these include cash balances, shopping vouchers and postage stamps. Any amounts held in a foreign currency are translated into sterling at the exchange rate on the date of reporting. 

VAT

Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase cost of assets. Where output VAT is charged or input VAT is recoverable, the amounts are stated net of VAT. 

Programme expenditure

Net expenditure for the year is analysed in the Statement of Comprehensive Net Expenditure between income and operating costs. The classification of expenditure and income as programme follows the definition of programme costs set out in HM Treasury Consolidated Budgeting Guidance, and as voted by Parliament in the Treasury’s Supply Estimate. 

Pensions

Past and present employees are covered by the provisions of the Principal Civil Service Pension Schemes as described in notes to the accounts and in the Authority’s Remuneration Report. The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS) are unfunded, except in respect of death in service or ill health retirement. Employees can opt to open partnership pension accounts, a stakeholder pension with employer contributions ranging from 8% to 14.75 % depending on the Employee’s age. The Authority recognises the expected costs of these elements on a systematic and rational basis over a period during which it benefits from employees’ services by payment to the Principal Civil Service Pension Schemes (PCSPS) of amounts calculated on an accruing basis.  Liability for payment of future benefits is a charge on the PCSPS. In respect of the defined contribution elements of the schemes, the Authority recognises the contribution payable for the year. 

Contingent liabilities

Where the time value of money is material, contingent liabilities which are required to be disclosed under IAS 37 are stated at discounted amounts and the amount reported to Parliament separately noted. Contingent liabilities that are not required to be disclosed by IAS 37 are stated at the amounts reported to Parliament. 

Accounting estimates and judgements

In preparation of the Authority’s financial statements, management is required to make estimates and judgements that impact the amounts being reported for assets and liabilities as at the date of the Statement of Financial Position and amounts reported against income and expenditure during the year. Uncertainties are inherent in business activities, and as such, some elements of financial statements cannot be measured precisely and therefore can only be estimated. Estimation involves judgements based on the latest available, reliable information. 

As per IAS1, paragraph 122 only the Estimates and Judgements that have the most significant effect on the amounts recognised in The Authority’s financial statements have been documented in the following section.  

Revenue from contracts with customers

IFRS15 Revenue from Contracts with customers requires that where a performance obligation is satisfied over time that revenue shall be recognised as and when the performance obligation has been satisfied. 

This requires the application of judgement by management to be applied to the measurement and timing of revenue recognition, related balances for contract assets, trade receivables and accrued and deferred income in the context of whether satisfaction of performance obligations is satisfied over time or at a point in time. The Authority primarily fulfils its performance obligations through services that are delivered over time, with revenue recognition based on costs incurred to maintain the continuity of survey-related activities. For contracts with explicit performance obligation milestones, revenue is recognised progressively as those milestones are achieved. 

The Authority has several income streams where the level of revenue is based on expenditure incurred; judgements are applied to ensure the costs associated are reliable and accurately reflect the level of expenditure of the project.  

Judgements are applied to calculate a corporate overhead rate which is used to derive the charge out rate when charging for staff time. The level of overheads associated with each revenue stream are agreed with the customer prior to contract commencement.  

The Authority recognises revenue using an input method based on the full economic costs, including overheads incurred. Revenue is calculated by reference to reliable estimates and total expected costs. Revenue and associated margin are therefore recognised progressively as costs are incurred. The Authority has determined this method faithfully depicts the Authority’s performance in transferring control of the services to the customer. 

Leases

At the commencement of a lease agreement, The Authority considers reasonable certainty regarding the lease term to account for potential break clauses, extensions and terminations when measuring the asset and liability value. As part of that consideration the Authority’s strategic plans and the  Authority’s facilities team are consulted to ensure a suitable measurement is applied to the reasonable certainty evaluation.  

The Authority was reasonably certain not to exercise termination options within its property lease agreements upon commencement of the leases for Newport, Titchfield and Christchurch estate. During the 2024/25 financial year, The Authority has entered into a new property lease agreement for office space in Manchester. Management have assessed the lease agreement and cannot be reasonably certain not to break the termination option, and therefore have accounted for the lease to the break clause as per IFRS16.

The Authority will reassess whether it is reasonably certain to exercise termination or break clauses, upon the occurrence of a significant event or a significant change in circumstances which is in the control of The Authority. Any significant event would need to relate to an unconditional business decision made by The Authority. A significant event has occurred during 2024/25, with the Darlington property lease. The Authority has signed a letter of commitment with GPA to occupy a new Government Hub at Brunswick Street, Darlington with a phased occupation expected to begin in 2028. With the confirmation of the new premises and following engagement with key stakeholders, The Authority are now reasonably certain to remain at Feethams House for the full length of the current lease. This has been accounted for as per IFRS16 within the 2024/25 accounts.  

As the lease liability and the right-of-use asset is based on unadjusted lease payments as known at the commencement date, no uplifts for inflation or RPI have been factored into the calculations. Therefore, when the lease payments change because of inflation or RPI the Authority will account for the remeasurement of the lease by recalculating the new lease liability by discounting adjusted lease payments with the original discount rate. The difference will be a right-of-use asset adjustment. The Authority does not anticipate any volatility within its lease payments as set out in lease agreements. 

In–house developed software applications – Assets Under Construction

Applicable expenditure incurred in the development of internally created software is capitalised and recognised as an intangible asset if the criteria set out in the relevant accounting standards are met. The Authority has made judgements and assumptions when assessing whether a project meets these criteria including making judgements about whether particular costs arise from the research phase, or the development phase of the software build, and the proportion of staff time to be capitalised (as per agreement with Financial Accountant and Project Manager). 

The Authority recognises an intangible asset, whether purchased or built in-house (at cost) if, and only if: 

• the Authority intends to complete the asset and bring it into use 
• the Authority has the ability to use the asset 
• there are adequate technical, financial and other resources to complete the development and use the asset 
• it is probable that the future economic benefits that are attributable to the asset will flow to the entity 
• the cost of the asset can be measured reliably 

In-house developed software applications are amortised between a range of two and six years (subject to an annual review), charged from the quarter in which the assets are completed. 

Statistical records 

Statistical information has built up over many years and is stored for reference purposes. No attempt is made to value this data, as there is no realistic way of doing so that would arrive at a meaningful valuation and it is not separable from the business under principles of IAS 38. The cost of storing and maintaining the data is charged to the Statement of Comprehensive Net Expenditure as incurred. 

Standards not yet adopted

IFRS17 Insurance Contracts

IFRS 17 Insurance Contracts, which replaces IFRS 4 Insurance Contracts, will be adopted in the UK from 1 January 2023. HM Treasury have agreed with the Financial Reporting Advisory Board (FRAB) to delay the implementation of IFRS 17 in central government by 2 years to 1 April 2025     

 The headline of the new standard is that the scope of an insurance contract will change from that under IFRS 4 Insurance Contracts, meaning that some contracts issued by organisations and not previously considered to fall within an insurance category could now be classified as an insurance contract. e.g. product breakdown contracts or warranties. The standard only applies to insurance contracts issued and not those held.  

Management has assessed the likely effect of the new standard and has concluded; the Authority does not believe it issues any contracts that fall within the scope of IFRS17. 

IFRS18 Presentation and Disclosure in Financial Statements

IFRS 18 Presentation and Disclosure of Financial Statements was issued in April 2024 and applies to annual reporting periods beginning on or after 1 January 2027 (subject to UK and Financial Reporting Advisory Board (FRAB) endorsement). IFRS 18 Presentation and Disclosure of Financial Statements sets out general and specific requirements for the presentation and disclosure of information in general purpose financial statements.  

The objective of IFRS 18 Presentation and Disclosure of Financial Statements is to improve comparability of financial performance between organisations applying IFRS. Once effective, it will replace IAS 1 Presentation of Financial Statements. The Authority does not intend to early adopt IFRS 18 Presentation and Disclosure of Financial Statements. 

Management has assessed the likely effect of the new standard, and it will not change how the Authority will recognise and measure items in the financial statements. It will affect the way the Authority presents and discloses information in those statements.  

IFRS 19 Subsidiaries without Public Accountability: Disclosures 

IFRS 19 Subsidiaries without Public Accountability: Disclosures was issued in May 2024 and applies to annual reporting periods beginning on or after 1 January 2027 (subject to UK and Financial Reporting Advisory Board (FRAB) endorsement). The Standard permits certain eligible subsidiaries to apply reduced disclosure requirements when preparing their financial statements.  

As the Authority does not have any subsidiaries, this standard will have no material impact.  

There are no other IFRS or IFRIC interpretations not yet effective that would be expected to have a material impact on The Authority.  

2. Segmental Information of Expenditure and Income

The following information is regularly provided in order to inform the decision making by the National Statistician’s Executive Group and the primary Chief Operating Decision Maker (CODM) of the UK Statistics Authority to make decisions regarding planning, resource allocation and income, as well as performance monitoring. 

Reconciliation between segment information and net operating cost in the statement of comprehensive net expenditure

3. Staff numbers and related costs

Staff costs

For the period ending 31 March 2025

Staff numbers

Capitalised staff costs

4. Programme costs

For the period ending 31 March 2025

5. Income

For the period ending 31 March 2025

An analysis of income from services provided external and public sector customers is as follows:

6. Property, plant and equipment

For the period ending 31 March 2025

For the period ending 31 March 2024

7. Intangible Fixed Assets

For the period ending 31 March 2025

For the period ending 31 March 2024

Intangible Fixed Assets – In-house developed software applications

For the period ending 31 March 2025

For the period ending 31 March 2024

Notes:

CORD (Central ONS Repository for Data) is the primary system used to compile the National Accounts including Quarterly National Accounts, Retail Sales Index and Trade (Goods and Services). The CORD platform capability is currently being enhanced to support the processing requirements to deliver the National Accounts in-line with the European System of Accounts 2012 Programme. This will be achieved through progressive improvements in statistical methods, data and system performance. During 24/25 financial year the useful life of the asset was changed to March 2025 and depreciation expensed accordingly. This will now be disposed from the Authority’s asset register.  

The Electronic Data Collection programme (EDC) aims to develop systems, methods and processes to improve the collection, integration and processing of data in relation to the UK’s economy and society.The software is part of an ongoing Data Collection Transformation Programme to modernise antiquated data collection modes, such as paper-based questionnaires, with a range of electronic data collection channels, making further use of the Web and administrative sources. The useful life was due to expire in May 2025. 

Clerical Matching – The ONS requires a capability to match records from multiple datasets and assure that the quality of the matches meet strict targets. The immediate need relating to successful delivery of the 2021 Census.  The ONS has an additional requirement that gives the option to re-use the capability for wider business needs beyond the Census with other datasets and to support the overall linking of datasets. This will require the flexibility to build on the existing capability of the tool to potentially meet emerging business need, for example, adding extra fields to the tool as required.  During 24/25 financial year the useful life of the asset was changed to March 2025 and depreciation expensed accordingly. This will now be disposed from the Authority’s asset register.  

ARIES Prices – ONS collects and analyses prices data for goods and services in the UK. A high-profile use of this data is calculation of the rate of inflation. The wider uses of the data include fiscal and political decision making, commercial planning in the public and private sectors, and uses in academic settings. With observable impacts on currency exchange rates, credit interest rates and political discourse the reliability and security of prices and inflation data is of critical importance. Methods and sources used by ONS for analysis of prices have changed in the past. A further need for Alternative Data Sources (ADS) in price statistics to address current and near-term requirements has become clear through high profile independent reviews such as the ‘Independent Review of UK Economic Statistics’ by Professor Sir Charles Bean and ‘UK Consumer Price Statistics: A Review’ by Paul Johnson. The remaining economic useful life of the asset was incorrectly disclosed as 4 years remaining in 23/24, this has been corrected in the table above. It is still due to expire in March 2029. 

In-house developed software applications – Assets Under Construction

For the period ending 31 March 2025

8. Trade Receivables and Other Assets

As at 31 March 2025

Total Trade Receivables Outstanding

9. Cash and Cash Equivalents

For the period ending 31 March 2025

10. Trade Payables and Other Current Liabilities

For the period ending 31 March 2025

11. Provisions for Liabilities and Charges

For the period ending 31 March 2025

Analysis of expected timing of discounted flows

Prior year analysis of expected timing of discounting flow for comparison

12. Capital Commitments

For the period ending 31 March 2025

13. Leases

Right of Use Assets

For the period ending 31 March 2025

For the period ending 31 March 2024

Maturity analysis Lease Liability

A maturity analysis of contractual undiscounted cash flows relating to lease liabilities is given below. Management monitors rolling forecasts of The Authority’s cash balance on the basis of expected cash flows, to ensure we are able to pay contractual commitments as they fall due.

Amounts recognised in the Statement of Comprehensive Net Expenditure

Amounts recognised in the Statement of Cash Flows

14. Other Financial Commitments

For the period ending 31 March 2025

The Authority entered into non-cancellable contracts (which are not Leases or PFI contracts) for Information Management Services, Statistical Services and Facilities Management. As a result the Authority is committed to the following payments.

15. Contingent Liabilities

For the period ending 31 March 2025

None.

16. Related Party Transactions

Although the Authority has had several material transactions with other government departments and other central government bodies, it is not required to disclose intra-government transactions.  

No Board Member, Key Manager, or other related parties have undertaken any further material transactions with the Authority during the financial year 2024/25.  The Authority has not identified any further related parties. 

17. Events Arising after the Reporting Date

In May 2025, the Government Property Agency notified the Authority of its plans to relocate the Authority’s London presence from its London office at 2 Marsham Street to Great Minster House in 2027. No formal documentation has been signed with the GPA on this relocation. Therefore, the 2 Marsham Street lease continues to be recognised over the full term to April 2031. 

18. Date of Authorisation of the Accounts

The Accounts were authorised for issue on the date of the Comptroller and Auditor General’s certification. This is documented on 123 to 125 (of the PDF).