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Annual Report and Resource Accounts 09: Volume 2 Better results for poor people Annual Report and Resource Accounts 2008–09: Volume 2 How to Contact us DFID’s Public Enquiry Point is dedicated to answering your questions Call: 0845 300 4100 (UK Local call rate) +44 1355 84 3132 (from outside the UK) Write: Public Enquiry Point DFID Abercrombie House Eaglesham Road East Kilbride Glasgow G75 8EA Email: enquiry@dfid.gov.uk Website: www.dfid,gov.uk Department for International Development Annual Report and Resource Accounts 2008 – 09 Volume II of II Departmental Resource Accounts and Annexes Resource Accounts presented to the House of Commons pursuant to Section 6(4) of the Government Resources and Accounts Act 2000. Departmental Report presented to Parliament by the Secretary of State for International Development pursuant to Section 1 of the International Development (Reporting and Transparency) Act 2006. Report and Accounts presented to the House of Lords by Command of Her Majesty. Ordered by the House of Commons to be printed on 16th July 2009. London: The Stationery Office HC 867-II Not to be sold separately £42.55 Cover photography: IVORY COAST Abidjan Cocoa beans being loaded onto a cargo ship at the port.The country is among the world’s largest producers of cocoa. Photographer © Sven Torfinn/Panos Picture Cover Photography: All photographs throughout this report are credited to DFID unless otherwise stated. This is part of a series of departmental reports which, along with the Main Estimates 2009-10, the document Public Expenditure: Statistical Analyses 2009, and the Supply Estimates 2009-10: Supplementary Budgetary Information, present the Government’s outturn and planned expenditure for 2009-10 and 2010-11. © Crown Copyright 2009 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. For any other use of this material please write to Office of Public Sector Information, Information Policy Team, Kew, Richmond, Surrey TW9 4DU or e-mail: [email protected] ISBN: 9780102962154 About Volume 2 This report together with Volume 1 constitutes the Department for International Development’s Annual Report 2009.This volume includes DFID Resource Accounts for 2008/09 and a number of annexes which respond to the requirements of the International Development (Reporting and Transparency) Act 2006 and departmental reporting requirements. Annex 1 is DFID Resource Accounts for 2008/09. Annex A responds to the statistical reporting requirements of the International Development (Reporting and Transparency) Act 2006. Annex B and C provide performance reports against Public Service Agreement 29 (Reduce poverty in poorer countries through quicker progress towards the Millennium Development Goals (MDGs)) led by DFID and the Departmental Strategic Objectives (DSOs) respectively. Annex D sets out general MDG progress, including targets and indicators. Annex E assesses the effectiveness of UK bilateral aid in each of the 22 countries specifically targeted by PSA 29. Annex F reports on our efforts to make UK bilateral aid more effective and responds to specific Act requirements on aid effectiveness and transparency. Annex G explains the country level MDG assessment for PSA 29, and the efforts which DFID is making to address data limitations. Annex H assesses performance against previous PSA targets for both 2003-06 and 2005-08, which continue to be monitored until final outturn data. Annex I shows DFID’s Organisation Chart. Annex J contains useful websites and sources of information.A glossary of most commonly used acronyms, abbreviations and development terms is given in Annex K. iii Contents to Volume 2 Annex 1 Resource Accounts 2008-2009 1 Annex A Annual reporting of statistical information 69 Annex B PSA 29 Performance Report 105 Annex C DSO Performance Report 110 Annex D Progress towards the Millennium Development Goals 132 Annex E Progress towards the MDGs in PSA 29 countries 139 Annex F Making bilateral aid more effective and the International Development (Reporting and Transparency) Act 2006 190 Annex G Explanatory note on MDG country assessment 204 Annex H 2005-08 and 2003-06 PSA reporting 212 Annex I Organisational chart 235 Annex J Useful websites and sources of information 236 Annex K Glossary of abbreviations 239 iv Department for International Development: Annual Report 2009 Contents to Resource Accounts 2008-2009 Resource Accounts 2008-09 1. Coverage of the Accounts 1 2. Public Sector Bodies 1 3. Other Reporting 2 4. Ministers 2 5. Management Commentary 2 5.1 Aims and objectives 2 5.2 Legislation 3 5.3 Performance measurement 3 5.4 Outputs and outcomes 4 5.5 Current and future trends 5 5.6 Financial Review 5 5.7 Long term and future commitments 9 5.8 Future business developments 11 5.9 Financial Instruments 11 5.10 Payment of Suppliers 11 5.11 Efficiency 11 6. Staffing and related issues 12 7. Corporate Governance 12 7.1 Permanent Head of Department and Management Board 12 7.2 Board Committees 13 7.3 Review of performance 13 7.4 Skills and Experience 13 8. Remuneration Report 14 8.1 Remuneration Policy 14 8.2 Service Contracts 14 8.3 Salary and pension entitlements (audited) 15 9. Information Assurance 20 10. Auditors 21 11. Post Balance Sheet Events 21 Statement of Accounting Officer’s Responsibilities 22 Contents v Statement on Internal Control 23 The Certificate and Report of the Comptroller and Auditor General to the House of Commons 30 Statement of Parliamentary Supply 32 Operating Cost Statement 33 Balance Sheet 34 Cash Flow Statement 35 Statement of Net Operating Costs by Departmental Strategic Objectives 36 Notes to the Financial Statements 37 vi Annex 1 Resource Accounts 2008-09 1. Coverage of the Accounts The Department for International Development (DFID) is responsible for leading the Government’s efforts to promote international development and eliminate poverty. These accounts cover DFID activities carried out from headquarter offices in London and East Kilbride; and offices in many developing countries. They do not consolidate the results of the limited number of non-departmental bodies or other organisations for which DFID has policy responsibility (section 2 below). DFID also pays, from separate funds, pensions and related benefits to certain former overseas civil and public servants. A separate resource account (Department for International Development: Overseas Superannuation) reports expenditure and other information about these pension schemes. DFID accounts include the administrative costs associated with this function. For public expenditure control purposes, DFID’s resource budget includes an attributed cost for the UK share of spending from the budget of the European Communities on development purposes. UK payments to the EC budget are made from the Consolidated Fund. In accordance with the Financial Reporting Manual (FReM) rules on treatment of payments out of the Consolidated Fund, attributed costs for development expenditure are not included in the primary statements. Information about the total resource budget is included in the Management Commentary. 2. Public Sector Bodies DFID, on behalf of the Government, owns 100 per cent of the issued share capital of the CDC Group plc. In 2004, fund management activities previously carried out by CDC were transferred to a newly formed limited liability partnership (Actis LLP). Our accounts include as assets the Government’s shareholding in CDC and the cost of its investment in Actis. Both CDC and Actis publish their own annual report and accounts. Note 14 of the accounts provides key summary data. DFID is also responsible for the following Non-Departmental Public Body: ¬Ê Commonwealth Scholarship Commission This body does not employ any staff or have any facilities. On 28 March 2008, the Crown Agents Holding and Realisation Board (Prescribed Day) Order 2008 (SI 2008 No. 921) came into force. This Order has the effect that any property, rights, liabilities or obligations which the Crown Agents Holding and Realisation Board (CAHRB) held immediately before 1 April 2008 were transferred to DFID on 1 April 2008 by virtue of this Order, to be disposed of by DFID thereafter. Any sums transferred by, or accruing under, this Order to DFID are to be paid into the Consolidated Fund. Any sums to be provided for the purposes of this Order are to be paid out of money provided by Parliament. Final accounts for CAHRB to 31 March 2008 were signed by Annex 1: Resource Accounts 2008-09 1 the National Audit Office in May 2009, showing net assets of £646,000. These accounts have not been adjusted for this sum based on materiality. 3. Other Reporting DFID publishes a Departmental Report each year that supplements these accounts and provides information to Parliament and the public on DFID’s activities. From 2008-09, this is being published in a combined document with these Resource Accounts. The Departmental Report is presented to Parliament pursuant to section one of the International Development (Reporting and Transparency) Act 2006. The report gives details of DFID’s work and key developments in 2008-09, together with indicative budget allocations for the period to 2009-10 and 2010-11.A further update on performance will be provided in the Autumn Performance Report (planned for December 2009). Each year DFID also publishes “Statistics on International Development” which contain a detailed breakdown of development expenditure. The next report, including 2008-09, will be published in Autumn 2009. 4. Ministers During the year to 31 March 2009, DFID’s Ministers were: Douglas Alexander MP, Secretary of State for International Development. Gareth Thomas MP, Minister of State for International Development (from October 2008).
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