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Annual Report and Accounts 2010/11

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Annual Report and Accounts 2010/11 The Defence Science and Technology Laboratory Annual Report and Accounts 2010/11 HC 1161 £20.50 Defence Science and Technology Laboratory Annual Report and Accounts 2010/11 Presented to Parliament pursuant to section 4 (6) of the Government Trading Funds Act 1973 as amended by the Government Trading Act 1990. Ordered by the House of Commons to be printed on 14 July 2011. HC 1161 London: The Stationery Office £20.50 1 Note: on 1 July 2001, in accordance with the Statutory Instrument 2001 No. 1246, the Defence Science and Technology Laboratory (Dstl) was created as a result of the separation of the Defence Evaluation and Research Agency (DERA); Dstl continuing as the Trading Fund. © Crown copyright 2011. You may reuse this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, go to: www.nationalarchives.gov. uk/doc/open-government-licence or email: [email protected] Where we have identified any third-party copyright information, you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this document should be sent to us at: [email protected] This publication is available for download at: www.official-documents.gov.uk and is also available from our website at: www.dstl.gov.uk ISBN: 9780102973099 Published by TSO Printed in the UK for The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID P002436354 06/11 Printed on paper containing 75 per cent recycled fibre content minimum. 2 Contents Overview About Dstl 04 Our role 04 Chairman’s statement 06 Chief Executive’s statement 08 Business review Key Targets 2010/11 10 Customers and markets 12 Operations review 16 Technology transfer 22 Financial review 24 Alliances and partnerships 26 Our people 28 Statement by Dstl Trades Unions 30 Awards and honours 32 Sustainability 34 Corporate governance Our Board of Directors 38 Directors’ remuneration report 43 Statement on internal control 46 Accounting information 53 Sustainability report 81 3 Overview About Dstl Our role Dstl’s Purpose is to maximise the impact Following changes to the political sLEADINGTHEFORMULATION DESIGNAND of Science and Technology (S&T) for and economic context over the past delivery of a coherent and integrated the defence and security of the UK year, MOD has undertaken a review MOD S&T programme using industrial, – providing the professional in-house of how Dstl can best contribute to academic and government resources expertise and leading the defence and defence and security from our position sMANAGINGANDEXPLOITINGKNOWLEDGE security S&T community to develop and within government. As a result, Dstl across the wider defence and security employ the capabilities that are needed has an updated role with increased community, and understanding S&T to deliver the National Security Strategy emphasis on leading, co-ordinating risks and opportunities through horizon and the Strategic Defence and Security and managing work delivered by others scanning Review. In the Dstl context, S&T covers and building ever stronger relationships sACTINGASATRUSTEDINTERFACEBETWEEN all aspects of science and technology with industry and the international MOD, wider government, the private and their applications, including social community to be successful. sector, academia and allies to support science, mathematics and engineering. military co-operation, capability Dstl’s updated role comprises six delivery, diplomacy and economic As the Government’s in-house defence elements: policy S&T organisation, we work with industry, sCHAMPIONINGANDDEVELOPING34SKILLS academia and our international partners sSUPPLYINGSENSITIVEANDSPECIALIST across MOD, including managing the to deploy and deliver advances in military S&T services for MOD and wider careers of MOD scientists. capability, support government decision government making and insure against current and sPROVIDINGANDFACILITATINGEXPERTADVICE future threats and risks. analysis and assurance to aid decision making and to support MOD and We also work with Other Government wider government to be an intelligent Departments (OGDs), exploiting our customer expertise and knowledge to improve the safety and security of UK citizens, and with international partners to support wider diplomatic aims. 4 5 5 Chairman’s statement This was a challenging year for Dstl. over future income and over Dstl’s This report includes, for the first time, Key immediate priorities included organisational position while the periodic income of £116.4 million for the external sustaining support for the Armed Forces review of Trading Fund status has been programme now managed by Dstl but in Afghanistan and for counterterrorism carried out. I am grateful for the way wholly delivered by others. On a like­ policy development and operations. in which staff have not let inevitable for-like basis excluding this income, The Government published its National uncertainty impact adversely on net income for the year was marginally Security Strategy and Strategic Defence performance. higher in cash terms than for 2009/10. and Security Review to which Dstl staff Charge-out rates to customers were made important contributions and The Board is very pleased that the held in cash terms at the same level as which provide the basis for much further Government has agreed Dstl’s future in 2009/10, and therefore fell in real work. This includes ensuring that Dstl’s role, which is described on page 4 of this terms. Due to the very tight control of forward programmes reflect agreed report, and that Dstl should continue as costs, operating profit for the year was priorities. There was a continuing focus a Trading Fund. We believe the Trading £41.3 million. This is enabling Dstl to on improving value for money in defence Fund model offers transparency for continue to self fund facilities of the where Dstl continues to play a major role our customers and incentivises Dstl to necessary quality to support the forward in working with others across MOD. continue to improve its performance, as programme. this year’s results show. At the same time, Dstl has taken on the I would like to thank the staff and our responsibility for leading the defence The keys to Dstl’s success are the quality Chief Executive Frances Saunders for all non-nuclear research programme, and commitment of our people. The that they have achieved in a demanding working closely with industry and results of the Civil Service People Survey but very successful year for Dstl. academia with which some 60 per cent at Dstl were generally encouraging, as is of the total programme is placed. Putting our reputation as a graduate employer. these new arrangements successfully in We need to maintain these strengths as place on the basis of mutual trust with we continue to reduce the number of industry has been a main priority for the permanent civil service employees and Board and I congratulate those involved to shift the balance between permanent in Dstl for the progress that has been and non-permanent staff to give us more made. agility in coping with changes in income. In 2010/11, the number of permanent Sir Richard Mottram This year there has also been staff fell despite taking on the new task Chairman considerable uncertainty for staff of managing the research programme. 16 June 2011 6 7 7 Chief Executive’s statement This has been another very busy, Trading Fund Review, through which we helping to save lives and pursue the very productive and successful year for the have agreed both a refresh of our role as difficult campaign objectives. organisation on all fronts. Operationally, an agency of MOD and Government and we have led the delivery of an increased the reaffirmation of the continuing value Our analytical community has also been volume of work while continuing to of Dstl as a Trading Fund. very active, whether in supporting the reduce our costs, manage a reduction in Strategic Defence and Security Review our permanent headcount and bring in We have taken on greater responsibilities or using our novel peace operations external expertise to augment capacity. for developing and delivering benefits wargaming techniques in operational from international relationships, and planning in Afghanistan. As challenges The rapid formation of the Defence are embracing the opportunities our mount and resources become ever more Science and Technology (DST) refreshed role has given us for following constrained, the effective use of analysis Programme Office within Dstl, and its up the strategic intent with programme to support senior decision makers to initial focus on letting the externally led actions. We have also been enhancing visualise their options and exercise their S&T programme for MOD, was a massive our strategic engagements with the plans is another example of where the challenge. Some parts of the supply defence and security S&T base in the UK, S&T community can have a significant base voiced concerns that this new exploring how to assess the effectiveness impact. arrangement, while achieving significant of these relationships. The Programme cost savings for MOD, would have a Office has been building further on the Dstl’s staff are, as always, the critical negative impact on their engagement with existing range of collaborative ways of ingredient that has made all of this MOD end users and with the programme. working with suppliers and following up happen. As our good results in the Civil As Chief Executive and Accounting on the initial success of the Centre for Service People Survey showed us this Officer for all the money that passes Defence Enterprise to reach out into the year, our staff take great pride in their through the Trading Fund, not only non-traditional supply base, to involve work and are highly committed to what that delivered with internal resources, them in innovation and in solving some of they do and to Dstl.
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