Uk Trade & Investment Resource Accounts 2009-10
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UK TRADE & INVESTMENT RESOURCE ACCOUNTS 2009-10 HC 3 Price: £27.25 _55809_Cover_imposed.indd 1 16/07/2010 14:03 _55809_Cover_imposed.indd 2 16/07/2010 14:03 Presented to the House of Commons pursuant to Section 6(4) of the Government Resources and Accounts Act 2000. UK TRADE & INVESTMENT RESOURCE ACCOUNTS 2009-10 (FOR THE YEAR ENDED 31 MARCH 2010) ORDERED BY THE HOUSE OF COMMONS TO BE PRINTED ON 22 JULY 2010 HC 3 London: The Stationery Office Price: £27.25 © Crown Copyright 2010 The text in this document (excluding the Royal Arms and other departmental or agency logos) may be reproduced free of charge in any format or medium providing it is reproduced accurately and not used in a misleading context. The material must be acknowledged as Crown Copyright and the title of the document specified. Where we have identified any third party copyright material you will need to obtain permission from the copyright holders concerned. ISBN: 9780102966008 Printed in the UK for The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID 2366163 07/10 Printed on paper containing 75% recycled fibre content minimum. _55809 report&accounts_v5.indd D 16/07/2010 14:02 Contents RESOURCE ACCOUNTS: MEMORANDUM NOTES ON TOTAL RESOURCES UK TRADE & INVESTMENT 2 USED TO DELIVER UKTI’S SERVICES 65 ANNUAL REPORT 3 ANNEXES 70 1 Introduction 3 Annex A – Technical Note on Measurement of Financial Benefits Generated by 2 UK Trade & Investment’s Objectives 5 UKTI Trade Services 71 3 Management Commentary 6 Annex B – UKTI CSR2007 Performance 4 The Organisational Structure 17 Framework Agreement 77 5 Corporate Responsibility 18 Annex C – Performance Framework and Resources 83 6 The Role of HRH The Duke of York 19 Annex D – Comprehensive Spending Review 2007 7 Senior Business Support 19 Funding and the Value for Money Efficiency Programme (2008-09 to 2010-11) 90 8 Corporate Governance 20 Annex E – Key Sources of UKTI Data 97 9 Departmental Remuneration Report 24 Annex F – Complaints to the Department 102 10 Statement of Accounting Officer’s Responsibilities 31 Annex G – Financial Tables: Major Programme Expenditure and Plans (2006-07 to 2010-11) 103 11 Statement on Internal Control 32 Annex H – Financial Tables: Budgets against 12 The Certificate and Report of the Actuals (2009-10) 105 Comptroller and Auditor General to the House of Commons 36 Annex I – Private Sector Sponsorship 106 PRIMARY STATEMENTS 38 Annex J – Sector Advisory Groups and Chairs 107 13 Statement of Parliamentary Supply 39 Annex K – The Business Ambassadors Network 108 14 Operating Cost Statement 40 Annex L – UKTI’s National Reach 109 15 Statement of Financial Position 41 Annex M – UKTI’s Global Reach 110 16 Statement of Cash Flows 42 Annex N – Contacting UKTI and the Services Delivered 112 17 Statement of Changes in Taxpayers’ Equity 43 ACRONYMS 117 18 Statement of Net Operating Costs by Departmental Strategic Objectives 44 19 Notes to the 2009-10 Accounts 45 Resource Accounts 2009-10 Page 1 _55809 report&accounts_v5.indd 1 16/07/2010 14:02 Resource Accounts: UK Trade & Investment Resource Accounts 2009-10 Page 2 _55809 report&accounts_v5.indd 2 16/07/2010 14:02 1 Annual Report Introduction shared departmental strategic 1.7 The adoption of IFRS has objectives for trade promotion and resulted in a number of 1.1 UK Trade & Investment (UKTI) foreign direct inward investment. presentational changes to the is a non-ministerial government Accounts. Many of these are department. It is a joint department 1.4 These accounts show UKTI changes in name, e.g. receivables of the Foreign and Commonwealth voted resource only, have been and payables instead of debtors and Office (FCO) and the Department prepared in accordance with creditors and the Statement of for Business, Innovation and Skills directions given by HM Treasury in Financial Position instead of the (BIS), and consequently contributes pursuance of Section 5(2) of the Balance Sheet. There is a new to the Strategic Objectives of both Government Resources and primary statement - the Statement parent Departments. UKTI delivers Accounts Act 2000. (2008-09 of Taxpayers’ Equity, which its remit on their behalf through figures are shown in brackets). The combines the previous notes, staff and assets mainly employed by Memorandum Notes have been showing the movements and either the FCO or BIS. prepared on a consistent basis and balances on reserves. The previous are drawn from BIS and FCO Notes to the Cash Flow Statement 1.2 UKTI provides expert advice audited resource accounts -see are incorporated into the Statement and support to UK-based businesses Section 3.3 for further details. of Cashflows and the Statement of wishing to trade internationally, as Recognised Gains and Losses is no well as support to businesses based First time Adoption of longer required. overseas wishing to locate in the International Financial Reporting UK. A detailed description of Standards (IFRS) 1.8 In addition to the primary services and how to access them statements prepared under IFRS, are set out in Annex N under three 1.5 These financial statements have the FReM also requires UKTI to headings: been prepared in accordance with prepare two additional primary the 2009-10 Government Financial statements. The Statement of • Developing your International Reporting Manual (FReM) issued by Parliamentary Supply and Trade Potential HM Treasury. The accounting supporting notes show, Outturn • Accessing International Markets policies contained in the FReM against Estimate in terms of the apply IFRS as adapted or Net Resource Requirement and the • Maximising Foreign Direct interpreted for the public sector Net Cash Requirement. The Investment context. Where the FReM permits a Statement of Operating Costs by choice of accounting policy, the Departmental Strategic Objectives Basis of Accounts accounting policy which is judged and supporting notes analyse the to be most appropriate to the Department’s income and 1.3 The accounts set out the particular circumstances of UK expenditure by the objectives resources voted to, and used by Trade & Investment for the purpose agreed with Ministers. UKTI. To arrive at the total of giving a true and fair view has resources used, the resources of BIS been selected. and the FCO allocated for UKTI activity also need to be added. 1.6 The changes to the prior year These have been included by way accounts as a result of the first- of Memorandum Notes providing time adoption of IFRS are shown in an estimate of the total resources Note 2 of the Notes to the used by UKTI to deliver its activity. Accounts. This reflects the shared governance arrangements between BIS, the FCO and UKTI for the delivery of their Resource Accounts 2009-10 Page 3 _55809 report&accounts_v5.indd 3 16/07/2010 14:02 Resource Accounts 2009-10 Page 4 _55809 report&accounts_v5.indd 4 16/07/2010 14:02 2 UK Trade & Investment’s Objectives 2.1 The following chart shows how UKTI delivers its targets and objectives, and contributes to its strategic objective which resulted from the 2007CSR settlement. Achieving the Strategic Objective of the Organisation. UKTI STRATEGIC OBJECTIVE 2008-09 TO 2010-11 By 2011, deliver measurable improvement in the business performance of UK Trade & Investment’s international trade customers, with an emphasis on innovative and R&D-active firms; increase the contribution of foreign direct investment to knowledge-intensive economic activity in the UK, including R&D; and deliver a measurable improvement in the reputation of the UK in leading overseas markets as the international business partner of choice. UKTI’S Targets 1. Attract high 2. Improve the 3. Increase the 4. Improve the value foreign performance of quantity of R&D UK’s reputation as direct investment UK businesses by activity in the UK the international to the UK helping them through business business partner of internationalise internationalisation choice 5. Improve UKTI’s operational performance: a: Increase professionalism b: Increase charging Resource Accounts 2009-10 Page 5 _55809 report&accounts_v5.indd 5 16/07/2010 14:02 3 Management Commentary For a taxpayer Total Resources Deployed and from The Stationery Office (TSO) Outputs/Outcomes quoting the relevant HC number. funding of 3.1 The Management Commentary 3.4 The illustration below sets out covers UKTI total resource approximately what UKTI achieved for the consumed in delivering its outputs/ resources it consumed. £270m, UKTI helped outcomes, as well as, the resource specifically voted to UKTI. our trade customers 3.5 The Statement of Net Operating Costs by Departmental 3.2 Details of the total resource achieve an Strategy Objectives, on page 44, deployed by UKTI can be found in indicates the net programme the Memorandum Notes on pages estimated £5.2 billion expenditure voted directly to UKTI 65 to 69. The table below shows and incurred in delivering against of additional profit. the total resources used during each of UKTI’s two sub-objectives. 2009-10 with comparators together with key outputs/outcomes. 3.6 Note 2 in the Memorandum Notes, on page 66, indicates the 3.3 The resources, voted to BIS total resource consumed in (HC211) and the FCO (HC 74), are delivering against each of UKTI’s shown in their respective resource two sub-objectives. accounts. These can be obtained UKTI IS IN 96 MARKETS COVERING 98% OF GLOBAL GDP UKTI Benefits 2009-10 • 23,600 businesses assisted UKTI Budgets 2009-10 UKTI Spend 2009-10 • £5.2bn additional profit to UK • UKTI £94m • Trade Support £270m businesses • 759 inward investment decisions • BIS £52m • Foreign Direct • 32,557 new jobs created • FCO £204m Investment £80m • 14,661 jobs safeguarded • £7bn defence sales Resource Accounts 2009-10 Page 6 _55809 report&accounts_v5.indd 6 16/07/2010 14:02 3.7 The table below sets out the total resources UKTI consumed and outcomes/outputs achieved with comparative figures.