Notes to Financial Statements
2) Government grant in aid
|
2006 £'000 |
Restated 2005 £'000 |
|---|---|---|
Department of Health |
140,303 |
140,787 |
National Assembly for Wales |
376 |
376 |
Scottish Executive |
640 |
474 |
Consultants' clinical excellence award funding |
1,336 |
1,242 |
Total Government grant in aid received |
142,655 |
142,879 |
Government grant in aid transferred to capital (note 17) |
(14,769) |
(7,632) |
Government grant in aid transferred from/(to) deferred income |
9,057 |
(8,509) |
Revenue Government grant in aid anticipated in 2003/04 |
- |
(1,000) |
Total revenue Government grant in aid received |
136,943 |
125,738 |
Transfers from Government grant reserve in respect of: |
|
|
amortisation of intangible fixed assets (note 9 ) |
249 |
103 |
depreciation of tangible fixed assets (note 10 ) |
9,531 |
8,749 |
impairment of tangible fixed assets (note 17) |
- |
244 |
170 |
258 |
|
Total Government grant in aid income |
146,893 |
135,092 |
The capital funding relates wholly to the Government grant in aid from the Department of Health. The Government grant in aid from the National Assembly for Wales and the Scottish Executive is wholly revenue.
The Health Protection Agency has United Kingdom-wide responsibilities. In addition to the formal grant in aid reported above, the Agency received funding from the Northern Ireland Executive of £710,000 (2005: £577,000) to fund core work which is included within operating income (note 3). The Agency also received other income from United Kingdom Government departments for contract and grant work which is also included within note 3.
3) Operating Income
|
2006 £'000 |
Restated 2005 £'000 |
|---|---|---|
Products and royalties |
22,078 |
15,754 |
Contracts and services |
56,998 |
60,252 |
Grants |
8,266 |
7,677 |
Other operating income |
141 |
792 |
Total operating income |
87,483 |
84,475 |
4) Staff costs
|
2006 £'000 |
Restated 2005 £'000 |
|---|---|---|
Salaries and wages |
105,999 |
95,332 |
Social security costs |
9,192 |
8,978 |
Other pension costs |
11,781 |
11,208 |
Total costs of staff employed |
126,972 |
115,518 |
Agency and seconded staff |
8,718 |
11,116 |
Redundancy and early retirement costs |
647 |
2,005 |
Total costs of employed and other staff |
136,337 |
128,639 |
Manufacturing staff costs transferred from / (to) finished goods |
593 |
(956) |
Total staff costs |
136,930 |
127,683 |
5) Employee numbers
The average number of full-time equivalent staff employed during the year was as follows:
|
2006 |
Restated 2005 |
|---|---|---|
Medical |
260 |
258 |
Nursing |
180 |
166 |
Professional, administrative and operational support |
847 |
799 |
Scientific |
590 |
578 |
Technical |
1,135 |
1,127 |
Total employee numbers |
3,012 |
2,928 |
The above figures relate to staff with a United Kingdom employment contract, and include those staff on maternity, sick, special or paternal leave and those on a career break, but only where they are being paid by the Agency.
In addition, during the year ended 31 March 2006 the Agency engaged staff on various agency, secondment and similar arrangements for variable time periods. Due to the nature of these engagements it is not possible to quantify the precise number of full-time equivalent persons engaged. It is estimated that the average number of persons engaged using these arrangements amounted to approximately 205 (2005: 270) whole time equivalents.
6) Pension Scheme
a) Pension scheme participation
• The majority of the Agency's employees are covered by two pension schemes; the National Health Service (NHS) Pension Scheme and the Combined Pension Scheme. A minority of employees have retained their individual membership of The Principal Civil Service Pension Scheme, or have exercised other options available as a result of The Social Security Act 1986. The three schemes available to the employees of the Health Protection Agency are defined benefit schemes, all of whom prepare separate scheme statements, which are readily available to the public. Details of the two major pension schemes are provided below.
b) The NHS Pension Scheme
The NHS Pension Scheme is an unfunded multi-employer defined benefit scheme, the provisions of which are contained in the NHS Pension Scheme Regulations (SI 1995 No. 300). The Scheme is notionally funded, with payment liabilities underwritten by the Exchequer. Scheme accounts are prepared annually by the NHS Pensions Agency and are examined by the Comptroller and Auditor General. The Government Actuary's Department values the NHS Pension Scheme every four years, and those quadrennial reports are published. The Scheme has a money purchase Additional Voluntary Contribution (AVC) arrangement which is available to employees to enhance their pension benefits.
Between valuations the Government Actuary's Department provides an update of the scheme liabilities on an annual basis. The latest assessment of the liabilities of the Scheme is contained in the Report of the Actuary , which forms part of the NHS Pension Scheme & Compensation for Premature Retirement Scheme Resource Accounts , published annually. These accounts can be viewed on the NHS Pensions Agency website at www.nhspa.gov.uk. Copies can also be obtained from the Stationery Office.
Under NHS Pension Scheme regulations, the Agency and participating employees are required to pay contributions, as specified by the Secretary of State for Health. These contributions are used to defray the costs of providing the NHS Pension Scheme benefits. For the year ended 31 March 2006, employees were required to pay contributions of 6% (manual staff 5%) of pensionable pay. The employer's contribution amounted to 14% of pensionable pay; all of which were charged to the income and expenditure account as and when they become due.
The Agency is unable to identify its share of the underlying assets and liabilities of the scheme. Having sought advice, the Agency considers that FRS 17 and HM Treasury's Financial Reporting Manual requires the scheme to be accounted for as defined contribution in nature.
c) The Combined Pension Scheme
The Combined Pension Scheme (CPS) was set up as a statutory body with effect from 1 July 1997 as a result of merging the previous UKAEA Principal Non-Industrial Superannuation Scheme (PNISS) and the UKAEA Industrial Superannuation Scheme (ISS) and is managed by the UKAEA. It is a multi-employer scheme which provides defined benefits to its members.
In common with other public sector schemes the CPS does not have many of the attributes of normal pension schemes. All contributions are paid to and benefits paid by HM Government via the Consolidated Fund. Any surplus of contributions made in excess of benefits paid out in any year is surrendered to the Consolidated Fund and any liabilities are met from the Consolidated Fund via the annual Parliamentary vote. Government does not maintain a separate fund and the scheme valuations are based on a theoretical calculation as to how a typical UK pension scheme would have invested the historical surplus of contributions over payments. There is no actual fund.
The nature of the CPS, supported as it is by the Government's Consolidated Fund and a theoretical portfolio of assets, has required the Agency to consider carefully the most appropriate treatment to meet the requirements of FRS 17 and present a true and fair view. Having sought advice, the Agency considers that FRS 17 and HM Treasury's Financial Reporting Manual requires the scheme to be accounted for as defined contribution in nature.
During the year ended 31 March 2006, the Agency chose to take advantage of the Government Actuary's recommendation to CPS administrators, in respect of employer contributions to the scheme, and paid contributions at a reduced level of 0.5% (2004-05: 0.5%). From 1 April 2006, HM Treasury replaced the method of calculating employers' contributions to unfunded pension schemes with the Superannuation Contributions Adjusted for Past Experience (SCAPE) methodology. Further details are available within each of the pension scheme reports. A consequence of this change is that, for the Combined Pension Scheme, the employers' contributions will increase from 0.5% to 17.3% with effect from 1 April 2006. This will result in costs of £1,646,000 in 2006/07 (2005/06: £46,000). The additional cost will be met by additional grant in aid funding.
d) Employer contributions
The Agency has accounted for employer contributions to these schemes, as if they were defined benefit schemes. Employer contributions were as follows:
|
2006 £'000 |
Restated 2005 £'000 |
|---|---|---|
The National Health Service (NHS) Pension Scheme |
11,608 |
10,912 |
The Combined Pension Scheme |
46 |
44 |
Other pension schemes |
127 |
10 |
Contributions in respect of continuing annual payments |
- |
242 |
Total employer pension contributions |
11,781 |
11,208 |
