5. Notes to the Accounts

1.Statement of Accounting Policies and Accounting Convention

The 2020/21 financial statements are prepared in accordance with the 2020/21 Government Financial Reporting Manual (FReM) issued by HM Treasury.

The accounting policies contained in the FReM apply 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.

In addition to the primary statements prepared under IFRS, the FReM also requires the Authority to prepare two additional primary statements. The Statement of Parliamentary Supply and supporting notes show outturn against Estimate in terms of the net resource requirement and the Net Cash Requirement.

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; the Authority keeps a small balance of sterling and euros as well as shopping vouchers and postage stamps.

Going concern

The Authority anticipates continued funding to promote and safeguard the production of official statistics that serve the public good, as evidenced by inclusion of financial provision for that service in the Core Table (page 71) and the 2021/22 UK Statistics Authority Main Estimate, a statutory instrument laid before Parliament. This is sufficient evidence that the Authority remains a going concern.

Property, plant and equipment

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

Civil Estate property is occupied in Newport, Titchfield and Christchurch. The land and buildings are stated at current market value using professional valuations on an annual basis. The annual professional valuation more fully reflects specific local market conditions.

The properties occupied at Titchfield, Christchurch and Newport were professionally valued as at 31 March 2021 by District Valuer Services (DVS) as the specialist property arm of the Valuation Office Agency. The valuations were prepared in accordance with the appropriate sections of the Practice Statements (PS) and the United Kingdom Practice Statements (UKPS) contained within the Royal Institution of Chartered Surveyors (RICS) Appraisal and Valuation Standards.

Expenditure on the short-term property lease, at Drummond Gate, is stated at current cost by using indices taken from the Authority’s publication “Price Index Numbers for Current Cost Accounting”. All other 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 (including VAT) and have a life greater than one year.

Intangible assets

Intangible assets consist of software licences 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 (including VAT) and have a life greater than one year.

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

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. The cost of storing and maintaining the data is charged to the Statement of Comprehensive Net Expenditure as incurred.

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 (except where otherwise indicated), as follows:

Table 48

ClassificationDepreciation/Amortisation methodology
Civil Estate LandNot depreciated
Leasehold propertyOver the term of the lease (expires in January 2025)
Freehold propertyAs indicated by the District Valuer Service’s annual report
Computer assetsBetween three and seven years
Office machineryBetween four and seven years
Furniture and fittingsBetween four and 10 years
In-house developed softwareBetween two and six years
Software licencesBetween two and six years

  • In-house developed software is assigned a useful economic life (UEL) of between two and six years at the time of capitalization. Technical circumstances can change for an asset during its life, resulting in the UEL being extended, which is reflected in the Fixed Asset Register where 3-17 years UEL has been recorded against certain assets.

For property, plant and equipment a full year’s depreciation is charged in the year of acquisition with the exception of building refurbishments where depreciation is charged from the quarter in which the assets are completed.

In-house developed software and 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.

Perpetual software licences are amortised on a straight line basis over a life of four years. Where software licences are over a specific period they are depreciated over this useful life.

Each group of assets is 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.

Assets held for sale

Assets held for sale comprise properties, plant and equipment that are no longer in operational use and are available for immediate sale in their present condition and are being actively marketed. The assets are classified from non-current to current assets at sales prices less costs to sell. Assets held for sale are not depreciated.

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
  • 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.

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 depended on the facts and circumstances presented in a contract with a customer and requires the exercise of judgement. Revenue related to performance obligations recognized over time as the service is rendered is measured by reference to either input (resources consumed in satisfying a performance obligation) or output (measurements of value to the customer of services transferred) methods.

The Authority recognises revenue using an input method based on 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.

If the overtime criteria for revenue recognition are not met, revenue is recognised at the point in time that control is transferred to the customer, when the Authority has right to payment on delivery.

Prices are calculated in accordance with Managing Public Money.

Foreign exchange

The Authority conducts a small number of transactions which are denominated in a foreign currency which are reviewed in accordance with IAS 21 and 39 (derivatives).

Transactions, other than Euros, are translated into sterling at the exchange rate ruling on the date of each transaction. Assets and liabilities denominated in Euros are translated into sterling at the exchange rate ruling at the date of the Statement of Financial Position.

Leases

Leases are reviewed in accordance with IAS 17. The total cost of operating leases is expensed in equal instalments over the life of the lease. Assets held under finance leases are capitalised as non-current assets at the inception of the lease, with a corresponding liability being recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments. Finance lease payments are apportioned between the reduction of the lease liability and finance charges in the Statement of Comprehensive Net Expenditure to achieve a constant rate of interest on the remaining balance of the liability. Assets held under finance leases are depreciated over the shorter of the estimated useful life of the asset and the lease term.

In January 2018 the UK Statistics Authority entered into an agreement to lease Drummond Gate. The lease is for a period of five years with a break clause after three years. We do not consider the lease term to represent a major part of the remaining economic life of the building. In addition, the lease agreement does not include any terms which transfer substantially all the risks and rewards of ownership to the UK Statistics Authority. We have therefore classified the lease as an operating lease.

Financial instruments

The Authority does not hold any complex financial instruments.

The only financial instruments included in the accounts are receivables and payables. Trade receivables are recognised at their amortised cost less expected credit losses in accordance with IFRS 9.

Provisions and early departure costs

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.

The Authority meets the responsibility of additional costs of employees
who take voluntary early severance or who retire early by paying the amounts required over the period between early departure and normal retirement date. The Authority provides for this in full when the early retirement programme becomes binding.

The Authority recognises a liability for early departure costs where an obligation to pay employees exists.

The Authority recognises the obligation as a provision in the financial statements when:

  • the scheme has been announced
  • it has created a valid expectation that it will fulfil the obligations
    of the scheme

The Authority recognises the obligation as an accrued liability in the financial statements when:

  • a formal signed agreement with the member of staff is in place
  • the member of staff has agreed a specified leaving date

In the circumstances where we have not met the criteria listed above the exit costs will be recognised in the following financial years.

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.

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.

VAT

Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase cost of assets. Where output tax 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

In addition to contingent liabilities disclosed in accordance with IAS 37, the Authority discloses for parliamentary reporting and accountability purposes certain statutory and non-statutory contingent liabilities where the likelihood of a transfer of economic benefit is remote, but which have been reported to Parliament in accordance with the requirements of Managing Public Money.

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 has made 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.

Definitions

Estimate

A tentative evaluation and rough calculation, of value, quantity or size. These would include:

  • depreciation
  • revaluations
  • provisions
  • accruals

Judgement

The capacity to assess situations or circumstances shrewdly and to draw sound conclusions. These would include:

revenue from contracts with customers

  • useful Economic Life and Impairment of In-house Software Intangible Assets Useful Economic Life
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4. Programme costs

For the period ending 31 March 2021

Table 49

 2020/212020/212020/212019/202019/202019/20
CensusOtherTotalCensusOtherTotal
£’000£’000£’000£’000£’000£’000
Rentals under operating leases
Other operating leases-977977-995995
Hire of plant and machinery1,1593111,470-208208
1,1591,2882,447-1,2031,203
Non-cash items
Depreciation1,00110,57811,57915113,69813,849
Impairment of fixed assets------
Unwinding and rewinding of discount on provisions--7-7-3232
Write off aged debtor and credit notes------
External audit fee-9797-9393
Prior year adjustment-----822-822
Loss on disposal of equipment----44
Net new provisions changed in year/(net release of provisions)-10,22810,228--819-819
1,00120,89621,89715112,18612,337
Information technology15,07931,69046,7696,70129,37436,075
Other expenditure78,6196,35384,97226,9131,94528,858
Survey incentives-99,66599,665-1,4431,443
Marketing and media24,53477925,3134957781,273
Payments for carrying out surveys257275,664275,92116012,90013,060
Consultancy5,0989676,0659,5941,61311,207
Accommodation3858,9889,3731519,0259,176
Travel and subsistence1,4298632,2928417,1457,986
Contractors14,82313,56228,3856,7816,19112,972
Miscellaneous fees2,3487,2449,5922,8951,3204,215
External training2302,4542,6843913,1893,580
Telecommunications2,7161,9134,629302,5892,619
Postage3842,4072,79171,0361,043
Stationery7721228952236288
Hospitality1,120311,15140283323
Exchange rate (gains)/losses-1010--29-29
Ex-gratia payments-11-77
Total149,259474,987624,24655,20292,434147,636

Notes

  • There were no non-audit fees incurred in 2020/21 (2019/20 £5,000). Other programme costs relate to normal business activities with a significant increase in 2020/21 costs being associated with the delivery of the COVID-19 Infection Survey. Survey incentive and Marketing and Media expenditure was categorised as other expenditure in theAuthority’s 2019/20 accounts.

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5. Income

For the period ending 31 Mar 2021

Table 51

 2020/212019/20
£’000£’000
Customer Contracts403,91621,098
Other4,1278,724
Capital Grants Received652-
EU Income161489
Total408,85630,311

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

Table 52

   2020/21  2019/20
ExternalPublic SectorTotalExternalPublic SectorTotal
£‘000
£‘000£‘000£‘000£‘000£‘000
Customer Contracts5,150398,766403,9164,93516,16321,098
Other3293,7984,1274,8293,8958,724
Capital Grants Received-652652---
EU income161-161489-489
Total5,64040,321640,885610,25320,05830,311

  • The significant increase in income during 2020/21 is associated with funding received from the Department of Health and Social Care in relation to the delivery of the COVID-19 Infection Survey.

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6. Property, plant and equipment

For the period ending 31 March 2021

Table 53

 LandBuildingComputersOffice MachineryFurniture & FittingsAssets Under ConstructionTotal
£‘000£‘000£‘000£‘000£‘000£‘000£‘000
Cost or Valuation
At April 201910,15726,93822,6351,4805,3501,14167,701
Additions--1,89263712,7425,011
Transfers-2,020----2,020-
Disposals-2,808-268-2,051-720-656--6,503
Revaluations1,340-3,68713314--2,209
At 31 March 20208,68925,00322,6097675,0691,86364,000
Depreciation
At April 2019-64011,2169622,072-14,890
Charged in year-1,6985,201192485-7,576
Disposals--76-2,052-716-656--3,500
Revaluations--2,23074-22--2,156
At 31 March 2020-3214,4394361,903-16,810
Cost or Valuation
At April 2020*8,69025,00322,609767*5,071*1,862*64,002
Additions--2,3109449162,9217,091
Transfers-2,548----2,548-
Disposals---665-46-278--989
Revaluations555-2,352-56-4375--1,821
At 31 March 20219,24525,19924,1981,6225,7842,23568,283
Depreciation
At April 2020-*33*14,438436*1,900-*16,807
Charged in year-1,9454,828366464-7,603
Disposals---665-46-278--989
Revaluations--1,924-41-2431--1,958
At 31 March 2021-5418,5607322,117-21,463
Net Book Value
At 31 March 20208,68924,9718,1703313,1661,86347,190
At 31 March 20219,24525,1455,6388903,6672,23546,820
Asset Financing
Owned9,24525,1455,6384353,6672,23546,365
Leased---455--455
Net book value at 31 March 20219,24525,1455,6388903,6672,23546,820

  • *Opening balance figures at April 2020 have been adjusted from closing balance figures at 31 March 2020 to address discrepancies caused by immaterial rounding adjustments.
  • Included in the £7,091,000 of additions are £766,000 of capital creditors. The total amount of capital creditors brought forwards from 2019/20 was £522,000.
  • The properties at Titchfield, Christchurch and Newport were professionally valued as at 31 March 2021 by the District Valuer Service (DVS), the commercial arm of the Valuation Office Agency (VOA) who are qualified to undertake these valuations. The valuation was prepared by a qualified Chartered Surveyor and the valuations were prepared in accordance with the appropriate sections of the Practice Statements and the United Kingdom Practice Statements contained within the Royal Institution of Chartered Surveyors Appraisal and Valuation Standards.
  • In August 2020, departments received instructions from the Chief Secretary to the Treasury to transfer ownership of their freehold properties to the Government Property Agency (GPA) by 31 March 2021. Delays in transferring the Authorities freeholds, due to unresolved transfer value negotiations, have led to the transfer date being extended to April 2021. The Authorities freeholds within scope of the transfer to GPA are its Titchfield, Christchurch, and Newport properties.
  • The Authority calculates and publishes indices, which are used to value non-property assets on a quarterly basis.

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7. Intangible fixed assets

For the period ending 31 March 2021

Table 54

 In house softwareSoftware licencesAssets under constructionTotal
£’000£’000£’000£’000
Valuation
At April 201954,2906,2833,30363,876
Additions-1,2271,4172,644
Transfers from assets under construction705--705-
Disposals-10,335-189--10,524
Revaluations1,445--1,445
At 31 March 202046,1057,3214,01557,441
Amortisation
At April 201945,1963,744-48,940
Charged in year4,3991,874-6,273
Disposals-10,335-189--10,524
Revaluations1,214--1,214
At 31 March 202040,4745,429-45,903
Valuation
At April 202046,1057,3214,01557,441
Additions-1,5302,4764,006
Transfers from assets under construction5,229--5,229-
Disposals-10,434-134--10,568
Revaluations285--285
At 31 March 202141,1858,7171,26251,164
Amortisation
At April 202040,4745,429-45,903
Charged in year2,1241,852-3,976
Disposals-10,434-134--10,568
Revaluations277--277
At 31 March 202132,4417,147-39,588
Net book value 31 March 20205,6311,8924,01511,538
Net book value 31 March 20218,7441,5701,26211,576

  • The net book value of in-house developed software would be £8,504,000 if historic cost accounting had been applied. The Authority calculates indicies to value in-house developed software assets on a quarterly basis. The Authority does not revalue software licences. Included in the £4,009,000 of capital additions are £7,000 of capital creditors and the amount brought forward from 2019/20 is nil.
  • Intangible fixed assets – in-house developed software applications

For the period ending 31 March 2020

Table 55

 CORDCASPACPI/RPICORAElectronic Data CollectionVirtual Micro LaboratoryImproving DisseminationLongitudinalBusiness PricesLife EventsData Access PlatformDCTP Business RegistersTotal In house software
Study
£‘000£‘000£‘000£‘000£‘000£‘000£‘000£‘000£‘000£‘000£’000£‘000£‘000
Valuation
At April 20198,89017,2128,6993,5757,1842641,3436931335,553744-54,290
Disposals---8,699-*(1,636)--------10,335
Transfers from AUC-----------705705
Revaluations290562-11618284322418124131,445
At 31 March 20209,18017,774-3,691*5,7302721,3867151375,73476871846,105
Amortisation
At April 20197,50215,9298,6992,8855,0302141,022527923,123173-45,196
Charged in year489325-7011,33950325168346171901614,399
Disposals---8,699-*(1,636)--------10,335
Revaluations254525-105136839204113911,214
At 31 March 20208,24516,779-3,691*4,8692721,3867151303,85337216240,474
Valuation
At April 20209,18017,774-3,6915,7302721,3867151375,73476871846,105
Disposals----3,691-4,370-272-1,386-715-----10,434
Transfers from AUC----4,816-----413-5,229
Revaluations74143--11----4566285
At 31 March 20219,25417,917--6,187---1375,7791,18772441,185
Amortisation
At April 20208,24516,779-3,6914,8692721,3867151303,85337216240,474
Charged in year203328--379---96264021772,124
Disposals ----3,691-4,370-272-1,386-715-----10,434
Revaluations70143--10----24475277
At 31 March 20218,51817,250--888---1374,52378134432,441
Net book value 31 March 2020935995--861---71,8813965565,631
Net book value 31 March 2021736667--5,299----1,2564063808,744
Remaining useful economic life42--3----213

  • *Prior year figures have been adjusted from those previously published to address discrepancies caused by immaterial rounding adjustments.
  • 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.
  • The Social Survey Repository replaced the Annual Population Survey/ Labour Force Survey re-weighting and Scientific Information Retrieval 2002 systems based in Newport, which currently weight, re-weight, impute, produce derived variables, attach geographies and store the APS and LFS data. It is built on the CASPA platform (Common Architecture for Statistical Processing and Analysis).
  • The CPI/RPI Re-engineering Project and Business Prices delivered a new generation of price index systems to produce CPI and RPI statistical outputs. Under the transformation programme the ONS moved the Price Index software to the standardised office data collection platform in April 2019. Therefore, the CPI/RPI only returned one year of benefits and the useful economic life was therefore reduced and a higher depreciation cost recognised in 2017/18.
  • CORA (Common Open Road Architecture) was a software platform for the processing of business-related statistical surveys and was replaced by Ingres Open Road software in 2020/21.
  • 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 Virtual Micro Laboratory (VML) provided a facility for researchers to review and collate administrative data, the Secure Research Service and the Statistical Research Environment have replaced the VML in performing this function.
  • The Improving Dissemination program has delivered a new, modern website with improved search and navigation. The programme also delivered new internal systems for statistical production areas to release outputs. As the program has delivered the benefits it was designed to achieve, the asset was disposed in 2020/21.
  • The Longitudinal Study provided valuable social research which linked life events and Census data back to 1971. The programme’s aim was to improve the analysis of occupational mortality and provide better information on fertility and birth rates. Census and Admin Data now provides this research as part of the Census Data Collection Transformation Programme.
  • The Business Prices programme provides additional functionality to include more respondents in line with Prices Surveys.
  • The Life Events software replaces the legacy system for processing and quality assuring life events registrations. The data held relates to registrations of Births, Deaths, Abortions, and Birth Notifications.
  • The software itself is an interim step towards the inclusion of Life Events on a corporate platforms in two years time. Due to the short time period until the transfer onto Corporate Platforms.
  • DCTP Business Registers is a result of a Project Review in 2017-18, where three separate components, the Address Index, the Business Index and the Statistical Business register were reviewed and combined within one project.  The development provides a new capability for ONS, increases efficiency, joins up across ONS and government, and puts ONS at the forefront of data management in government. This project will create high quality statistics, where discontinuities between the current and future system can be explained to an appropriate level of granularity. It will enable the ONS milestone of making short-term surveys integrated and online.
  • Data Access Platform (DAP) – The ONS Strategy is to utilise new data sources and processing techniques to enable us deliver “Better Statistics, Better Decisions” this means utilising Big Data, bringing in data from other departments and companies, being able to explore that data and link it together to gain new insights. DAP is an enabler for that strategy, giving the ONS the tools and technology it needs to securely store all our data and the processing power to make use of it.

Intangible fixed assets

For the period ending 31 March 2021

In-house developed software applications – assets under construction

Table 56

 DAPBusiness RegistersSurvey Data CollectionClerical MatchingTotal Assets Under construction
£’000£’000£’000£’000£’000
Valuation
At April 20192967052,302-3,303
Additions101-1,316-1,417
Transfers from AUC--705---705
At 31 March 2020397-3,618-4,015
Valuation
At April 2020397-3,618-4,015
Additions16-1,1991,2612,476
Transfers from AUC-413--4,816--5,229
At 31 March 2021--11,2611,262

  • Assets under construction are not revalued or depreciated.

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8. Financial instruments

For the period ending 31 March 2021

As the cash requirements of the Authority are met through the Estimates process, financial instruments play a more limited role in creating and managing risk than would apply to a non-Public Sector body of a similar size. The majority of financial instruments relate to contracts for non-financial items in line with the Authority’s expected purchase and usage requirements. The Authority is, therefore, exposed to little credit, liquidity or market risk. The Authority revalues outstanding Euro transactions
at year end.

Currency risk

Table 57

 2020/212020/212019/202019/20
Non-interest bearing financial assetsNon-interest bearing financial liabilitiesNon-interest bearing financial assetsNon-interest bearing financial liabilities
£‘000£‘000£‘000£‘000
Gross financial ssets / liabilities Euro-6246
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9. Trade receivables and other assets

as at 31 March 2021

Table 58

 2020/212019/20
£’000£’000
Amounts falling due within one year:
Trade receivables82,7111,911
Deposit and advances--
Other receivables3,0513,487
Prepayments and accrued income25,28211,045
111,04416,443
Amounts falling after more than one year:
Deposits and advances5250
111,09616,493

Total trade receivables outstanding

Table 59

 2020/212019/20
£’000£’000
1-30 days82,6591,909
31-60 days522
82,7111,911
Statement of Financial Position
Deposits and advances falling due after more than one year5250
Trade and other receivables82,7111,911
Other current assets28,33314,532
Total111,09616,493

  • 2020/21 figures reflect a net yearly decrease of £597,000 in the value of pre-paid holiday and flexi pay. The Authority calculates the holiday and flexi prepayment at the year end with the figure being reflected in the category of prepayments and accrued income. 2020/21 Trade receivables include £82,299,000 (2019/20 £1,368,000) of receivables relating to contracts with customers. 2020/21 Prepayments and accrued income include £12,769,000 (2019/20 £1,112,000) of receivables relating to contracts with customers. The increase in both categories during 2020/21 is associated with funding received from the Department of Health and Social Care in relation to the delivery of the COVID Infection Survey.
  • In accordance with IFRS 9 the Authority has reviewed its activities and concluded as a standalone non- ministerial body it does not hold complex financial instruments.
  • The only financial instruments included in the accounts are receivables and payables.
  • Trade receivables are recognised at their amortised cost less credit loss. The Authority primarily transacts with public sector bodies, historically outstanding debts are recovered.
  • The Authority’s payment terms are 30 days. At 31 March 2021 £52,000 debt is outstanding over thirty but less than 60 days, all of which is allocated to public sector bodies which it does not consider a credit risk.
  • Because of the Lyons Gershon review, Public Sector Relocation and Regional Disparities in Britain, the Authority relocated staff from its London office. At the 31 March 2021 the Authority recognises an outstanding housing loan debt of £5,000, all of which is due in less than two years which it does not consider a debt risk. The Authority does not extend loans to other parties.

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10. Cash and cash equivalents

For the period ending 31 March 2021

Table 60

 2020/212019/20
£’000£’000
Balance at 1 April8,280297
Net change in cash and cash equivalent balances12,9867,983
Balance at 31 March 202121,2668,280
The following balances at 31 March were held at:
Government Banking Service accounts20,1838,249
Commercial banks and cash in hand55
Cash equivalents1,07826
Balance at 31 March 202121,2668,280
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11. Trade payables and other current liabilities

For the period ending 31 March 2021

Table 61

 2020/212019/20
£’000£’000
Amounts falling due within one year:
Other taxation and social security8,2093,493
Trade payables15,0043,925
Accruals and deferred income107,37129,675
Amounts issued from Consolidated Fund for supply but not spent21,2668,280
at year end
Total151,85045,373

  • 2020/21 figures reflect a net yearly increase of £2,845,000 of accrued holiday and flexi pay. The Authority calculates the holiday and flexi accrual at year end with the figure being reflected in the category of accruals and deferred income. 2020/21 accruals and deferred income balance does not contain liabilities arising from contracts with customers (2019/20 £0).
  • In accordance with IFRS 9 the Authority has reviewed its activities and concluded as a standalone non- ministerial body it does not hold complex financial instruments.
  • The only financial instruments included in the accounts are receivables and payables.
  • The Authority’s standard contractual payment terms are 30 days, creditors are recognised on receipt of goods or services.
  • The Authority is not in receipt of loans.

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12. Provisions for liabilities and charges

For the period ending 31 March 2021

Table 62

 Early Departure CostsDrummond Gate DilapidationsSurvey IncentivesOther ProvisionsTotal
£’000£’000£’000£’000£’000
Balance at 1 April 20191,2791,562-2,4195,260
Provided in year697822-7972316
Provisions not required written back-316-657--2,162-3,135
Provisions utilised in the year-852---226-1,078
Unwinding of discount1-91---90
Rewinding of discount-122--122
Balance at 31 March 20208091,758-8283,395
Balance at 1 April 20208091,758-8283,395
Provided in year--9,1581,63310,791
Provisions not required written back-559---4-563
Provisions utilised in the year-250----250
Unwinding of discount--122---122
Rewinding of discount-115--115
Balance at 31 March 2021-1,7519,1582,45713,366

Analysis of expected timing of discounted flows

Table 63

 Early Departure CostsDrummond Gate DilapidationsSurvey IncentivesOther ProvisionsTotal
£‘000£‘000£‘000£‘000£‘000
up to 31 March 2022--9,1582,14611,304
Between 2023 and 2026-1,751-1181,869
Between 2026 and 2031---186186
Between 2031 and 2035---77
Balance at 31 March 2021-1,7519,1582,45713,366

Analysis of expected timing of discounted flows table on page 150

Early Departure Costs

  • The Authority meets the additional costs of benefits, beyond the normal PCSPS benefits, in respect of employees who retire early by paying the required amounts annually to the PCSPS over the period between early departure and the normal retirement date. The Authority provides for this in full when the Early Retirement programme becomes binding by establishing a provision for the estimated payments.

Drummond Gate Dilapidations

  • The Lease for a single floor at the Drummond Gate building was renewed in March 2020.
  • As part of the lease agreement, the Authority has taken on a repairing obligation for the externals of the building and part of the dilapidation until the end of the new lease. The new lease is due to expire in January 2025 with a break clause in January 2023.
  • The UK Statistics Authority expects to pay a sum in respect of dilapidations under the Terms of the Lease. The provision has been rewound by H.M. Treasury’s cumulative discount and inflation rate of 7.06 per cent.

Survey Incentives

  • The Authority issues shopping vouchers to survey respondents as an incentive to complete certain surveys and is billed for the cost of these vouchers once the voucher has been redeemed by the recipient.
  • Vouchers issued to survey respondents have a three-month expiry date and the Authority will incur expenditure on the element that will be redeemed.

Other Provisions

  • Ongoing contractual obligations and pending employment tribunals.

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13. Capital commitments

For the period ending 31 March 2021

Table 64

 2020/212019/20
£’000£’000
Contracted capital commitments392732
Total commitments as at 31 March 2021 not otherwise included on these financial statements392732
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14. Commitments under leases

For the period ending 31 March 2021

Operating leases

The total future minimum Lease payments under Operating Leases are detailed in the table below for each of the following periods.

Table 65

 2020/212019/20
£’000£’000
Buildings:
Not later than one year1,1861,217
Later than one year and not later than five years2,3143,180
More than five years97318
4,4734,415
Other:
Not later than one year4,04194
Later than one year and not later than five years53143
Total4,094237

Finance leases

One Finance Lease was entered into during 2020/21, the leased asset is included under Property, Plant and Equipment. The obligations under Finance Leases as at 31 March 2021 are as shown in the table below.

Table 66

 2020/212019/20
£’000£’000
Property, plant and equipment
Not later than one year112-
Later than one year and not later than five years337-
449-
Less interest element-10-
Present value439-
The carrying value of the leased asset comprises:
Present value of lease payments at commencement551-
Less full year depreciation-96-
Net book value455-
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15. Other financial commitments

For the period ending 31 March 2021

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.

Table 67

 CensusOther2020/21CensusOther2019/20
£’000£’000
Not later than one year88,80622,874111,68069,22122,64391,864
Later than one year and not later than five years9013,0783,9794,63287,29153,619
Total89,70725,952115,659115,54929,934145,483
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16. Contingent liabilities

For the period ending 31 March 2021

None.

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For the period ending 31 March 2021

The Authority has had various material transactions with other Government Departments and other Central Government bodies.

The table below shows all Government Department and other Central Government bodies with whom we had total transactions in excess of £1million during the year. The figures below are net of VAT.

Table 68

 IncomeExpenditureReceivablePayable
£‘000£‘000£‘000£‘000
Department for Health and Social Care37,0756-76,269-
National Savings and Investments6,416---
Cabinet Office523,994220
Welsh Assembly Government3,208-613-
Northern Ireland Statistics and Research Agency3,109434--
Foreign, Commonwealth and Development Office1,772557--
Scottish Government1,446-555-
Intellectual Property Office1,215---
HM Treasury Group1,07716--

  • Board Member and Director remunerations are shown in the remuneration report.
  • No Board Member, Key Manager, or other related parties have undertaken any further material transactions with the Authority during the financial year 2020/21.
  • The Authority has not identified any further related parties.

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18. Events arising after the reporting date

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19. Date of authorisation of the accounts

The Accounts were authorised for issue on the date of the Comptroller
and Auditor General’s certification.

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