Statement of Comprehensive Net Expenditure for the year ended 31 March 2023
This account summarises the expenditure and income generated and consumed on an accrual basis. It also includes other comprehensive income and expenditure which includes for example, changes to the values of non-current assets and other financial instruments that cannot yet be recognised as income or expenditure.
Note | 2022-23 | 2021-22
| |
---|---|---|---|
Total Operating Income | 5 | (2,925) | (2,843)
|
Staff Costs | 3 | 7,511 | 7,135 |
Purchase of Goods and Services | 4 | 3,177 | 3,277 |
Depreciation and impairment
|
4 |
1,961 |
127
|
Total Operating Expenditure |
| 12,649 | 10,539 |
Net Operating Expenditure | SOAS1.1 | 9,724 | 7,696 |
Other Comprehensive Net Expenditure
Items that will not be reclassified to net operating expenditure: – Net loss/ (gain) on revaluation of Property, Plant and Equipment | 6/7 | 773 | (105) |
Comprehensive Net Expenditure for the year |
| 10,497 | 7,591 |
The notes on pages 96 to 111 form part of these accounts
Statement of Financial Position as at 31 March 2023
This statement presents the financial position of the Office. It comprises three main components: assets owned or controlled; liabilities owed to other bodies; and equity, the remaining value of the entity.
|
Note | 31 March 2023 | 31 March 2022 | |
---|---|---|---|---|
Non-current Assets | Property, Plant and Equipment | 6 | 6,321 | 7,047 |
Intangible Assets | 7 | 7 | 24 | |
Total non-current assets | 6,328 | 7,071 | ||
Current Assets | Trade and other receivables | 9 | 1,031 | 1,322 |
Cash and cash equivalents | 10 | 335 | 827 | |
Total Current Assets | 1,366 | 2,149 | ||
Total Assets | 7,694 | 9,220 | ||
Current Liabilities | Trade and other payables | 11 | (1,132) | (2,464) |
Provisions | 12 | - | - | |
Total Current Liabilities | (1,132) | (2,464) | ||
Total assets less current liabilities | 6,562 | 6,756 | ||
Non-current liabilities | Provisions | 12 | - | - |
Total non-current liabilities | -
| - | ||
Total assets less total liabilities | 6,562 | 6,576 | ||
Taxpayers' equity and other reserves: | General Fund | 6,328 | 5,606 | |
Revaluation Reserve | 234 | 1,150 | ||
Total Equity | 6,562 | 6,576 |
Dorinnia Carville
Comptroller and Auditor General for Northern Ireland 30 June 2023
The notes on pages 96 to 111 form part of these accounts
Statement of Cash Flows for the year ended 31 March 2023
The Statement of Cash Flows shows the changes in cash and cash equivalents of the Office during the reporting period. The statement shows how the Office generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of services costs and the extent to which these operations are funded by way of income from the recipients of services provided by the Office. Investing activities represent the extent to which cash inflows and outflows have been made for resources which are intended to contribute to the Office’s future public service delivery.
| Note | 2022-23 £’000 | 2021-22 £’000 | |
---|---|---|---|---|
Cash flows from operating activities | Net operating expenditure | (9,724) | (7,696) | |
| Adjustment for non-cash transactions | 4 | 1,961 | 127 |
| (Increase) / Decrease in trade and other receivables | 9 | 291 | (355) |
| Increase / (Decrease) in trade and other payables | 11 | (1,332) | 1,340 |
| less movements in payables relating to items not passing through the Statement of Comprehensive Net Expenditure | 1,242 | (1,244) | |
| Use of provisions | 12 | - | - |
| Net cash outflow from operating activities | (7,562) | (7,828) | |
Cash flows from investing activities | Purchase of Property, Plant and Equipment | 6,11 | (2,628) | (2,358) |
| Purchase of intangible assets | 7 | - | (19) |
| Net cash outflow from investing activities | (2,628) | (2,377) | |
Cash flows from financing activities | From the Consolidated Fund (Supply) – current year | 9,600 | 10,500 | |
| From the Consolidated Fund (non-Supply) | 4 | 211 | 160 |
| Net financing | 9,811 | 10,660 | |
| Net increase/(decrease) in cash and cash equivalents in the period before adjustment for receipts and payments to the Consolidated Fund | (379) | 455 | |
| Payments of amounts due to the Consolidated Fund | (113) | - | |
| Net increase / (decrease) in cash and cash equivalents in the period after adjustment for receipts and payments to the Consolidated Fund | (492) | 455 | |
| Cash and cash equivalents at the beginning of the period | 10 | 827 | 372 |
| Cash and cash equivalents at the end of the period | 10 | 335 | 827 |
The notes on pages 96 to 111 form part of these accounts
Statement of Changes in Taxpayers' Equity for the year ended 31 March 2023
This statement shows the movement in the year on the different reserves held by the Office analysed into ’general fund reserves’ (i.e. those reserves that reflect a contribution from the Consolidated Fund) and the ‘revaluation reserve’. The General Fund represents the total assets less liabilities of the Office, to the extent that the total is not represented by other reserves and financing items. The Revaluation Reserve reflects the change in asset values that have not been recognised as income or expenditure.
Note | General Fund | Revaluation Reserve | Taxpayers’ Equity | |
---|---|---|---|---|
Balance at 31 March 2021 | 3,051 | 1,150 | 4,201 | |
Net Assembly Funding - drawn down | 10,500 | - | 10,500 | |
Net Assembly Funding - deemed | 372 | - | 372 | |
Consolidated Fund Standing Services non-supply | 4 | 160 | - | 160 |
Consolidated Fund Standing Services adjustment | 4,9 | 54 | - | 54 |
Supply payable adjustment | 11 | (827) | - | (827) |
CFERs payable to the Consolidated Fund | 11 | (113) | - | (113) |
Comprehensive Net Expenditure for the year | (7,696) | 105 | (7,591) | |
Other reserves movements including transfers | 105 | (105) | - | |
Balance at 31 March 2022 | 5,606 | 1,150 | 6,756 | |
Net Assembly Funding - drawn down | 9,600 | - | 9,600 | |
Net Assembly Funding - deemed | 827 | - | 827 | |
Consolidated Fund Standing Services | 4 | 211 | - | 211 |
Supply payable adjustment | 11 | (335) | - | (335) |
Comprehensive Net Expenditure for the year | (9,724) | (773) | (10,497) | |
Other reserves movements including transfers | 143 | (143) | - | |
Balance at 31 March 2023 | 6,328 | 234 | 6,562 |
The notes on pages 96 to 111 form part of these accounts
Notes to the Resource Accounts
1. Statement of Accounting Policies
Article 6 of the Audit (Northern Ireland) Order 1987, as amended by the Government Resources and Accounts Act (Northern Ireland) 2001, requires the NIAO to prepare resource accounts.
In meeting this requirement, the financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adapted or interpreted for the public sector context by the Government Financial Reporting Manual (FReM) issued by the Department of Finance.
The particular policies adopted by the NIAO are described below. Where the FReM permits a choice of accounting policy, the accounting policy most appropriate to give a true and fair view of the particular circumstances of the NIAO has been selected. They have been applied consistently in dealing with items that are considered material to the financial statements.
In addition to the primary statements prepared under IFRS, the FReM also requires the Office to prepare one additional primary statement. The Statement of Outturn against Assembly Supply and supporting notes show outturn against the Estimate in terms of the net resource requirement and the net cash requirement.
1.1 Basis of preparation
These accounts have been prepared under the historical cost convention modified to account for the revaluation of property, plant and equipment and intangible assets. Figures are presented in pounds sterling and are rounded to the nearest £1,000. Transactions in foreign currencies are translated into sterling at the exchange rate at the date of the transaction.
1.2 Property, plant and equipment
Land and buildings have been included on the basis of professional valuations performed by Land & Property Services (LPS). The valuation provided by LPS as at 31 March 2023 is open market value in existing use for the land and buildings held for use by the NIAO, with the building valued on the basis of fitted out accommodation rather than solely as the shell of the building. The element of the building to be rented out is treated as an Investment Asset and has been valued on the basis of fair value which equates to market value.
Information technology and furniture have been restated using valuation indices produced by the Office for National Statistics.
The minimum level for capitalisation of property, plant and equipment is £1,000. All non-property operational assets are stated at fair value on the basis of their existing use.
1.3 Intangible assets
Intangible assets comprise capitalised operational software licenses and the costs involved in implementing the software. The cost of licences and implementation costs are amortised over their expected useful lives of between three and seven years. The minimum level for capitalisation of an intangible asset is £1,000. These assets have also been restated using valuation indices produced by the Office for National Statistics.
1.4 Depreciation
Depreciation is provided at rates calculated to write off the valuation of property, plant and equipment by equal instalments over their estimated useful lives. Asset lives are normally in the following ranges:
Information Technology 3 to 7 years
Furniture 5 to 20 years
The building is depreciated over a 30 year estimated useful life. Land is not depreciated.
Where events have arisen which reduce the recoverable amount of any non-current asset below its carrying amount, an impairment loss is recognised.
1.5 Work in progress
Work in progress relates to a proportion of audit fees that have been earned by the end of the financial year but where a fee has not yet been issued. The calculation is based on the amount of audit work completed by the end of the financial year as a proportion of the total expected amount of audit work, less any foreseen losses and payments received on account.
1.6 Pensions
Past and present employees of the NIAO are covered by the provisions of the Principal Civil Service Pension Scheme (Northern Ireland) (PCSPS (NI)). The defined benefit scheme is unfunded. The Office recognises the expected cost of these elements on a systematic and rational basis over the period during which it benefits from the employees’ services by a payment to the PCSPS (NI) of amounts calculated on an accruing basis. Liability for payment of future benefits is a charge on the PCSPS (NI). In respect of defined contribution schemes, the Office recognises the contribution payable for the year.
1.7 Other provisions
The NIAO provides for legal or constructive obligations which are of uncertain timing or amount at the reporting date on the basis of the best estimate of the expenditure required to settle the obligation.
1.8 Financial instruments
The NIAO does not hold any complex financial instruments. The only financial instruments included in the accounts are receivables and payables. Trade receivables are recognised initially at fair value less provision for impairment. A provision for impairment is made when there is evidence that the Office will be unable to collect an amount due in accordance with agreed terms.
1.9 Income
Income principally comprises fees and charges for services provided by statute or by agreement with the National Audit Office (NAO) and client organisations. This income represents the amounts derived from the provision of completed work for clients during the year and includes an appropriate allowance for work in progress on assignments which will be completed in the following year. Further details of the NIAO’s application of IFRS 15 to audit assignments are set out in Note 5.
1.10 Secondment income
The NIAO seconds staff to other organisations in the public sector. It will typically seek to recover the associated salary costs of the staff member on secondment. However, the NIAO may at times subsidise the cost of this secondment where it is in its strategic interests to do so and where the experience and skills gained through the secondment will bring future benefit to the NIAO.
1.11 Value Added Tax (VAT)
The NIAO does not charge VAT for any work it carries out under statute. The NIAO can recover VAT at a partial exemption rate. For 2022-23 this was at a rate of 4 per cent (2021-22: 5 per cent), based on the percentage of business income over total income. Income and expenditure in the account is stated exclusive of irrecoverable VAT.
1.12 Staff costs
Staff costs include wages and salaries, social security costs and pension costs. Under IAS 19 Employee Benefits, all staff costs must be recorded as an expense as soon as the organisation is obligated to pay them. This includes the cost of any untaken leave as at the year end.
1.13 Impending application of newly issued accounting standards not yet effective
The Office has reviewed new accounting standards that have been issued but are not yet effective, nor adopted early for these accounts.
IFRS 17 (Insurance Contracts) was issued in May 2017, replacing IFRS 4 (Insurance Contracts) but will not be effective in the public sector until April 2025. It requires that insurance liabilities be measured at the present value of future insurance cash flows, resulting in more uniform measurements and presentation for all insurance contracts.
Management has assessed the likely effect of the new standard and has concluded that there are no material assets or liabilities recognised as insurance contracts in the NIAO, and therefore this standard will have no impact on NIAO’s financial statements.
1.14 Accounting estimates and judgements
Contract assets (WIP) – management estimate
In order to calculate the income to be recognised in respect of audit services, the NIAO estimates the stage of completion of each audit so that income can be recognised progressively as services are provided. The stage of completion is determined with reference to the proportion of total budgeted costs which have been incurred at the reporting date. This percentage completion rate is then applied to the audit fees to allocate income to the reporting period, less any provision required for unrecoverable amounts.
Further information is provided in Note 5 to the financial statements.
1.15 Review of Financial Process
Review of Financial Process (RoFP) was initiated to simplify financial reporting to better align Budgets, Estimates and Accounts. The legislation necessary for RoFP (The Financial Reporting (Departments and Public Bodies) Act (Northern Ireland) 2022) received Royal Assent in March 2022. The NIAO is applying this accounting policy change for the first time for the financial year ended 31 March 2023 and, in accordance with IAS 1 as adapted by the FReM, has restated prior year comparatives to ensure comparability and consistency of financial information against the current reporting period. The most significant changes to the Annual Report and Accounts as a result of RoFP are as follows:
- The primary statements (including the SoAS) and the Notes to the Accounts (including Net Outturn, Reconciliation of outturn to net operating expenditure and Reconciliation of Net Cash Requirement) have been revised to incorporate the alignment requirements; and
- The Assembly control totals have been revised to reflect the alignment of the Estimates and Budgeting boundaries.
2. Statement of Operating Costs by Operating Segment
NIAO’s operating segments reflect the activities undertaken to achieve the business objectives.
Costs | 2022-23 Gross Expenditure | 2022-23 Income | 2022-23 Net Expenditure | 2021-22 Gross Expenditure | 2021-22 Income | 2021-22 Net Expenditure |
---|---|---|---|---|---|---|
Financial Audit | 9,474 | 2,775 | 6,699 | 7,556 | 2,676 | 4,880 |
Public Reporting | 2,287 | 150 | 2,137 | 1,905 | 151 | 1754 |
Governance and Fraud Prevention and Detection | 650 | - | 650 | 535 | - | 535 |
Support to the NI Assembly, other public bodies and citizens | 225 | - | 225 | 279 | 16 | 263 |
SBRI/GovTech Funding | - | - | - | 250 | - | 250 |
Comptroller Function | 13 | - | 13 | 14 | - | 14 |
Total | 12,649 | 2,925 | 9,724 | 10,539 | 2,843 | 7,696 |
Financial Audit
Forming an opinion on financial statements; assessing whether expenditure is regular and in accordance with the intentions of the Assembly when it granted the money; and providing assurance on the Accounting Officer’s Governance Statement.
Public Reporting
Independently examining and reporting to the Northern Ireland Assembly on whether public bodies spend taxpayers’ money economically, efficiently and effectively. Audit, assessment and reporting on local councils’ performance improvement responsibilities. Providing public bodies with constructive advice in the form of good practice reports across a range of areas.
Governance and Fraud Prevention and Detection
Helping public bodies improve their corporate governance, financial control and risk management arrangements, and assisting in the prevention and detection of fraud by conducting and reporting on data matching exercises.
Support to the Northern Ireland Assembly, other public bodies and citizens
Working closely with the Public Accounts Committee on evidence sessions based on NIAO reports; providing support to departmental committees; responding to enquiries from elected representatives as well as citizens; seconding staff to other public bodies; and providing office space to other public bodies.
SBRI/GovTech funding
Data Analytics is a fast developing area which will have an impact on the audit process in the future. The NIAO secured grant funding in 2021-22 and 2020-21 through the Department for the Economy’s Small Business Research Initiative (SBRI) and in 2019-20 through the Department for Business, Energy and Industrial Strategy’s GovTech initiative. This funding was directly allocated as grants to successful applicant organisations to conduct research in this area and to help develop new techniques or systems.
Comptroller Function
Authorising the issue of public funds from the Consolidated Fund for Northern Ireland.
3. Staff Costs
| 2022-23 £’000 | 2021-22 £’000 |
---|---|---|
Wages and Salaries | 5,253 | 5,009 |
Social Security Costs | 599 | 539 |
Other Pension Costs | 1,659 | 1,587 |
Total net costs | 7,511 | 7,135 |
A breakdown of the above costs into permanent staff and other can be found in the Staff Report within the Accountability Report.
4. Other Administration Costs
|
| Note | 2022-23 | 2021-22 |
---|---|---|---|---|
Administration Costs | Contracted Out Audits | 1,418 | 1,565 | |
| IT Support Services | 414 | 395 | |
| Accommodation | 321 | 212 | |
| Recruitment and training | 219 | 192 | |
| Consolidated Fund Standing Services (C&AG’s salary) | 211 | 214 | |
| National Fraud Initiative Charge | 133 | - | |
| Professional Services Bought In | 109 | 102 | |
| Other Indirect Costs | 107 | 84 | |
| Rentals under building operating lease | 83 | 117 | |
| Office Supplies/Equipment | 64 | 27 | |
| Legal Fees | 29 | 72 | |
| Travel and Subsistence | 22 | 7 | |
| SBRI Initiative | - | 250 | |
| Internal Auditor’s Fees | 20 | 13 | |
| External Auditor’s Fees - Audit | 21 | 20 | |
| External Auditor’s Fees - Other | - | 6 | |
| Hospitality | 6 | 1 | |
| Total cash items | 3,177 | 3,277 | |
Non-cash items | Depreciation | 6,7 | 192 | 127 |
| Impairment of non-current assets | 1,760 | - | |
| Reclassification of non-current assets | 6 | 9 | - |
| Total non-cash items | 1,961 | 127 | |
| Total |
| 5,138 | 3,404 |
During the year the Office procured the following non-audit services through open competition from its auditor, Baker Tilly Mooney Moore:
Leadership training, £20,500 (2021-22: £6,000 for validation of impacts).
5. Operating Income
| 2022-23 £’000 | 2021-22 £’000 |
---|---|---|
Income from NAO | 431 | 469 |
Other Audit Fees | 2,349 | 2,358 |
NFI Receipts | 145 | - |
Other Income | - | 16 |
Total | 2,925 | 2,843 |
In line with its accounting policy, the NIAO has applied the requirements of IFRS 15 to income earned from fee-paying audits falling within the scope of IFRS 15.
Identification of a contract
The basis of the different streams of audit work are set out below.
Statutory Audit
For these audits, we are appointed auditors under statute, and we charge a fee directly to the body. For audits under the Government Resources and Accounts Act NI 2001 the client recognises a notional fee, and no income is recognised in the NIAO accounts.
There is no legal contract with fee-paying statutory audit clients but there is deemed to be a contract in accordance with the FReM adaptation of IFRS15 where the definition of a contract is expanded to include legislation and regulations enabling an entity to receive income. The contract is deemed to be as set out in the Letter of Understanding between the NIAO and the audited body.
Performance Obligation: Issue a certificate and report of the C&AG to the Northern Ireland Assembly.
Agreement Audit
For these audits, we are appointed auditors by the organisation’s board under their own governance arrangements and have a contract with them in the form of a Letter of Engagement.
Performance Obligation: Issue a certificate and report of the C&AG to the Northern Ireland Assembly.
Companies Act Audit
For these audits, we are appointed auditors under the Companies (Public Sector Audit) Order 2013 and therefore have a contract with them in the form of a Letter of Understanding.
Performance Obligation: Issue a certificate and report of the C&AG to the Northern Ireland Assembly.
National Audit Office sub contract services
For these assignments we contract with the NAO to conduct audit and verification work on regional organisations for which the NAO is the appointed lead auditor.
Performance Obligation: Issue a report or advice as per the terms of the engagement.
Identification of performance obligations
The NIAO has determined that there is a single performance obligation for each engagement which is identified as the objective of these assignments in the Letter of Understanding or Letter of Engagement, or contract for services provided to NAO. In the case of audits, other outputs, such as interim reports and reports to those charged with governance of the audited body, are produced during audit assignments, but these other outputs are integral to the audit opinion; they are highly interrelated with the delivery of the audit certificate or report, so do not qualify as distinct performance obligations.
Determination of when performance obligations are satisfied
The NIAO has determined that the performance obligations described above are satisfied over time rather than at a point in time. This is because the NIAO’s performance of the engagement does not create an asset with an alternative use to the NIAO and the NIAO has an enforceable right to payment for performance completed to date.
The majority of the NIAO’s financial audits are on an annual cycle. The fee (which is based on estimated costs to the NIAO) and invoicing schedule is agreed between the individual assignment teams and the client. The NIAO is entitled to recover costs in respect of work completed to date at any stage of the audit. Typically the NIAO invoices audits with fees over £50,000 in two instalments and all other audits are invoiced when the audit is complete.
The NIAO’s payment terms are that audit fee invoices should be paid within 30 days. Contracts for audit services do not have a significant financing component and the consideration amount is not variable except in respect of fee increases where it has become necessary to perform additional work.
Allocation of transaction price to performance obligations
Income is recognised as the services are provided, determined by reference to the proportion of budgeted costs that have been spent to date for each engagement, less a provision for any unrecoverable amounts. This provides a faithful depiction of the transfer of services because the nature of work is that the staff costs incurred represent progress towards satisfaction of the performance obligation. There is a direct relationship between these inputs and the transfer of services to the audit client.
Recognition of contract assets and liabilities
The contract asset (work in progress) is recorded in Note 9. Payments received in advance of performance under the contract are recognised as a contract liability (payments on account). This is then recognised as revenue as the NIAO performs its work.
6. Property, Plant and Equipment 2022-23
| Land | Buildings
| Information Technology | Furniture and Fittings | Assets Under Construction | Total | |
---|---|---|---|---|---|---|---|
Cost or Valuation | At 1 April 2022 | 350 | 3,150 | 9 | 33 | 3,523 | 7,065 |
| Additions | - | - | 62 | 24 | 1,904 | 1,990 |
| Reclassifications | - | 5,110 | - | 308 | (5,427) | (9) |
| Disposals | - | - | (1) | (10) | - | (11) |
| Impairment | - | (1,760) | - | - | - | (1,760) |
| Revaluations | 50 | (1,000) | 2 | 32 | - | (916) |
| At 31 March 2023 | 400 | 5,500 | 72 | 387 | - | 6,359 |
Depreciation | At 1 April 2022 | - | - | 9 | 8 | - | 17 |
| Charged in year | - | 144 | 9 | 22 | - | 175 |
| Disposals | - | - | (1) | (10) | - | (11) |
| Revaluations | - | (144) | - | 1 | - | (143) |
| At 31 March 2023 | - | - | 17 | 21 | - | 38 |
Carrying amount at 31 March 2022 | 350 | 3,150 | - | 24 | 3,523 | 7,047 | |
Carrying amount at 31 March 2023 | 400 | 5,500 | 55 | 366 | - | 6,321 |
All assets at 31 March 2023 are owned by the NIAO.
Buildings include £1 million of non-operational assets which are treated as Investment Assets as they are available for rent.
Assets under construction represents the design and other professional costs incurred to date as part of the redevelopment of the NIAO office at 106 University Street, Belfast.
Details of the basis of valuation can be found in Note 1.2 to the Accounts.
6. Property, Plant and Equipment cont’d. 2021-22
| Land | Buildings | Information Technology | Furniture and Fittings | Assets Under Construction | Total | |
---|---|---|---|---|---|---|---|
Cost or Valuation | At 1 April 2021 | 350 | 3,150 | 9 | 20 | 447 | 3,976 |
| Additions | - | - | - | 12 | 3,076 | 3,088 |
| Disposals | - | - | - | - | - | - |
| Revaluations | - | - | - | - | - | - |
| At 31 March 2022 | 350 | 3,150 | 9 | 32 | 3,523 | 7,064 |
Depreciation | At 1 April 2021 | - | - | 8 | 5 | - | 13 |
| Charged in year | - | 105 | 1 | 3 | - | 109 |
| Disposals | - | - | - | - | - | - |
| Revaluations | - | (105) | - | - | - | (105) |
| At 31 March 2022 | - | - | 9 | 8 | - | 17 |
Carrying amount at 31 March 2021 | 350 | 3,150 | 1 | 15 | 447 | 3,963 | |
Carrying amount at 31 March 2022 | 350 | 3,150 | - | 24 | 3,523 | 7,047 |
All assets at 31 March 2022 were owned by the NIAO.
Assets under construction represents the design and other professional costs incurred to date as part of the redevelopment of the NIAO office at 106 University Street, Belfast.
Details of the basis of valuation can be found in Note 1.2 to the Accounts.
7. Intangible Assets 2022-23
| Software Licences £’000 | |
---|---|---|
Cost or valuation | At 1 April 2022 | 70 |
| Additions | - |
| Disposals | (49) |
| Revaluations | - |
| At 31 March 2023 | 21 |
Depreciation | At 1 April 2022 | 46 |
| Charged in year | 17 |
| Disposals | (49) |
| Revaluations | - |
| At 31 March 2023 | 14 |
| Carrying amount at 31 March 2022 | 24 |
| Carrying amount at 31 March2023 | 7 |
All assets at 31 March 2023 were owned by the NIAO.
Details of the basis of valuation can be found in Note 1.3 to the Accounts.
7. Intangible Assets cont’d. 2021-22
| Software Licences £’000 | |
---|---|---|
Cost or valuation | At 1 April 2021 | 51 |
| Additions | 19 |
| Disposals | - |
| Revaluations | - |
| At 31 March 2022 | 70 |
Depreciation | At 1 April 2021 | 28 |
| Charged in year | 18 |
| Disposals | - |
| Revaluations | - |
| At 31 March 2022 | 46 |
Carrying amount at 31 March2021 |
| 23 |
Carrying amount at 31 March2022 |
| 24 |
All assets at 31 March 2022 are owned by the NIAO.
Details of the basis of valuation can be found in Note 1.3 to the Accounts.
8. Financial Instruments
As the cash requirements of the Office 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 Office’s expected purchase and usage requirements, and the Office is therefore exposed to little credit, liquidity or market risk.
9. Trade and other receivables
Amounts receivable within one year | 2022-23 £’000 | 2021-22 £’000 |
---|---|---|
Trade receivables | 184 | 433 |
Work in progress | 721 | 736 |
Consolidated Funding Services non-supply | - | 54 |
Prepayments | 126 | 99 |
Total | 1,031 | 1,322 |
There are no amounts receivable after more than one year.
10. Cash and cash equivalents
| 2022-23 £’000 | 2021-22 £’000 |
---|---|---|
Balance at 1 April | 827 | 372 |
Net change in cash and cash equivalent balances | (492) | 455 |
Balance 31 March (held at a commercial bank.) | 335 | 827 |
11. Trade and other payables
| 2022-23 £’000 | 2021-22 £’000 | |
---|---|---|---|
Amounts falling due within one year | VAT | 83 | 85 |
| Trade payables | 33 | 11 |
| Consolidated Funding Services non-supply | - | 54 |
| Accruals | 337 | 407 |
| Employee benefits accrual | 240 | 231 |
| Payments on account | 6 | - |
Total excluding amounts due to the Consolidated Fund | 699 | 788 | |
| Amounts issued from the Consolidated Fund for supply but not spent at year end | 335 | 827 |
| Consolidated Fund extra receipts due to be paid to the Consolidated Fund: Received | - | - |
| Consolidated Fund extra receipts due to be paid to the Consolidated Fund: Receivable | - | 113 |
| Sub Total | 1,034 | 1,728 |
| Other payables: capital creditor | 98 | 736 |
Total | 1,132 | 2,464 |
There are no amounts falling due after more than one year.
12. Provisions for Liabilities and Charges
The NIAO has no provision for liabilities and charges.
13. Contingent Liabilities
The Office has not entered into any guarantees or indemnities or provided any letters of comfort.
Public Sector Pensions - Injury to Feelings Claims
The Department of Finance (DoF) is a named Respondent in a class action affecting employers across the public sector and is managing claims on behalf of the Northern Ireland Civil Service (NICS) departments. This action is linked to the McCloud Judgment. This is an extremely complex case and may have significant implications for the NICS and wider public sector. However the cases are at a very early stage of proceedings and until there is further clarity on potential scope and impact, a reliable estimate of liability cannot be provided.
14. Capital and other commitments
14.1 Capital Commitments
Contracted capital commitments at 31 March not otherwise included in these financial statements | 2022-23 £’000 | 2021-22 £’000 |
---|---|---|
Property, Plant and Equipment (Commitments under a construction contract for the refurbishment of NIAO premises on University Street) | 45 | 1,147 |
Total | 45 | 1,147 |
14.2 Commitments under leases
There were no obligations under operating leases.
14.3 Other Financial Commitments
The Office has no other financial commitments as at 31 March 2023.
15. Related Party Transactions
None of the NIAO Audit and Risk Assurance Committee, Advisory Board, Senior Leadership Team members or other related parties has undertaken any material transactions with the NIAO during the year.
The NIAO has had a number of transactions with the Department of Finance.
16. Events after the reporting period
There were no reportable events between the end of the reporting period and the date the accounts were signed.
Date of authorisation for issue
The C&AG authorised the issue of these financial statements on 30 June 2023.