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DOE Resource Accounts 2015-16 Department of the Environment Annual Report and Accounts For the year ended 31 March 2016 Laid before the Northern Ireland Assembly by the Department of Finance under section 10(4) of the Government Resources and Accounts Act (Northern Ireland) 2001 on 1 July 2016 ISBN: 978-1-907053-99-3 DMS 16.17.116 Department of the Environment Annual Report and Accounts For the year ended 31 March 2016 Laid before the Northern Ireland Assembly by the Department of Finance under section 10(4) of the Government Resources and Accounts Act (Northern Ireland) 2001 on 1 July 2016 © Crown copyright 2016 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence v.3. To view this licence visit http://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/ or email: [email protected]. Where we have identified any third party copyright information, you will need to obtain permission from the copyright holders concerned. This publication is also available at www.daera-ni.gov.uk Any enquiries regarding this document should be sent to us at Department of Agriculture, Environment and Rural Affairs, Freedom of Information Unit, Dundonald House, Upper Newtownards Road, Ballymiscaw, Belfast, BT4 3SB DEPARTMENT OF THE ENVIRONMENT Annual Report and Accounts for the year ended 31 March 2016 Contents Page Performance Report Overview 3 Performance Analysis 9 Accountability Report Corporate Governance Report - Directors’ Report 61 - Statement of the Accounting Officer’s Responsibilities 70 - Governance Statement 71 Remuneration and Staff Report 82 Assembly Accountability and Audit Report - Statement of Assembly Supply & Associated Notes 99 - Other Assembly Accountability Disclosure Notes 100 - The Certificate and Report of the Comptroller and Auditor General to the Northern Ireland Assembly 110 Financial Statements - Consolidated Statement of Comprehensive Net Expenditure 112 - Consolidated Statement of Financial Position 113 - Consolidated Statement of Cash Flows 115 - Consolidated Statement of Changes in Taxpayers’ Equity 117 Notes to the Departmental Resource Accounts 119 1 1 (This page has been left blank intentionally) 2 2 Department of the Environment Annual Report and Accounts for the year ended 31 March 2016 PERFORMANCE REPORT 1. OVERVIEW The Stormont House Agreement contained a commitment to reduce the number of Northern Ireland Civil Service Departments from 12 to 9 immediately following the 2016 Assembly Election. DOE will be transformed and functions from the Department will be incorporated into three new departments: the Department for Agriculture, Environment and Rural Affairs; the Department for Infrastructure and the Department for Communities. This is the last Annual Report and Accounts for the Department of the Environment (DOE, the Department). Departmental Aim 1.01 The Department’s aim is: To protect and improve the environment, promote well being, and support a sustainable economy, and strong, effective local government. Objectives 1.02 In support of this aim, the Department had the following strategic objectives during 2015-16: To create prosperity and well being through environment and heritage management and regulation; To deliver improved road safety and better regulation of the transport sector; To consolidate and support the operation of the new planning system; and To support the delivery of new local government structures. Departmental Functions 1.03 In addition to our role of supporting and advising the Minister, the Department’s main functions include: Strategic planning; 3 3 Department of the Environment Annual Report and Accounts for the year ended 31 March 2016 Planning and environmental policy and legislation; Local government policy; Protection, conservation and promotion of the natural environment and built heritage; Road safety and vehicle regulation policy, including strategies to reduce the number of people killed or seriously injured on our roads; and Driver and operator licensing and testing. Departmental Boundary 1.04 The accounts have been prepared in accordance with the provisions of the Government Financial Reporting Manual (FReM) in line with the accounts direction issued by the Department of Finance letter DAO (DFP) 03/16. They cover all entities within the departmental boundary, as determined in the FReM. The following are considered within the boundary: The DOE divisions, comprising Local Government Policy Division, Planning Policy Division, Strategic Planning Division, Environmental Policy Division, Regulatory and Natural Resources Policy Division, Marine Division, Road Safety & Vehicle Regulation Division, Finance & Business Planning Division and Human Resources & Organisational Change Division; and Historic Environment Division. The following supply-financed executive agencies: Northern Ireland Environment Agency (NIEA) – responsible for protecting and improving the quality of water and land; conserving biodiversity and the countryside and protecting species; and promoting awareness and appreciation of the environment and heritage. Driver & Vehicle Agency (DVA) (Licensing functions only) – responsible for the registration and licensing of drivers (including taxi drivers) and passenger transport operators. 4 4 Department of the Environment Annual Report and Accounts for the year ended 31 March 2016 Entities outside Departmental Boundary 1.05 The testing function of the DVA is constituted as a Trading Fund and is therefore, outside the departmental resource accounting boundary. However, since the Department is still responsible for DVA Testing, reference to its activities and associated data has been included in the Annual Report. DVA Testing’s accounts are published in the DVA Annual Report and Accounts, which are available from the Department for Infrastructure website (www.infrastructure-ni.gov.uk/driver-and- vehicle-agency). 1.06 The Department’s Consolidated Statement of Financial Position as at 31 March 2016 includes Public Dividend Capital created by the Driver & Vehicle Testing Agency Trading Fund Order (NI) 1996. 1.07 The DVA has been designated as a Public Corporation from its inception (1 April 2007) by the Office of National Statistics and its funding regime has been revised accordingly. 1.08 Two executive Non-Departmental Public Bodies sponsored by the Department are also outside the departmental boundary and are not included in the accounts. These are the Local Government Staff Commission and the Northern Ireland Local Government Officers’ Superannuation Committee. Their accounts are audited by the Local Government Auditor, a designated member of Northern Ireland Audit Office staff and are available from the Department’s Local Government Policy Division. The Department is empowered to make payments of general grant and other specific grants to district councils. The district councils are also outside the departmental boundary. Reporting Cycle 1.09 The Department has specific responsibility for the delivery of 3 Key Commitments. These commitments were incorporated into the suite of corporate scorecards, and updates provided to the Departmental Board through the normal quarterly performance review process. Updates were also provided to the Office of the First Minister and Deputy First Minister (OFMDFM) on request. 5 5 Department of the Environment Annual Report and Accounts for the year ended 31 March 2016 1.10 The Department produces a Main Estimate each year which sets out its detailed spending plans that underpin the resource and cash provision sought by the Department. A Supplementary Estimate is also produced to seek authority for additional resources and / or cash to that sought in the Main Estimate for that financial year. The Estimate is structured on an objective and function basis. The DOE Estimate has one Request for Resources (RfR), which equates to the Departmental objective. The Statement of Assembly Supply to the Resource Accounts provides a Summary of Resource Outturn for the financial year and compares outturn with Estimate. Staffing 1.11 At 31 March 2015, there were 2,658 permanent staff (headcount) in the Department; 1,891 (71.1%) of these were working full-time and 767 (28.9%) working part-time/reduced hours; 1,246 (46.9%) were female and 1,412 (53.1%) male. The split for Senior Civil Servants was 4 female (23.5%) and 13 (76.5%) male. 1.12 At 31 March 2016, there were 1,841 permanent staff (headcount) in the Department; 1,576 (85.6%) of these were working full-time and 265 (14.4%) working part-time/reduced hours; 746 (40.5%) were female and 1,095 (59.5%) male. The split for Senior Civil Servants was 6 female (40%) and 9 (60%) male. The reduction in staffing since 31 March 2015 is in the main as a consequence of the transfer of planning functions and the associated staff to local council employers and the staff exits under the NICS Voluntary Exit Scheme during 2015- 16 financial year. Key Commitments 1.13 The Department has specific responsibility for the delivery of 3 Key Commitments which builds upon the Executive’s Programme for Government. The 3 Key Commitments are as follows: Continue to work towards a reduction in greenhouse gas emissions by at least 35% on 1990 levels by 2025; 6 6 Department of the Environment Annual Report and Accounts for the year ended 31 March 2016 Work towards halting the loss of biodiversity by 2020; and Achieve a household recycling or composting rate of 46% by end of March 2016 and work towards EU target of 50% by 2020. 1.14 During the year the Department used the Key Commitments to inform its overall aim, key objectives and associated budget allocation and drive a number of its key targets. 1.15 The Business Plan for 2015-16 was developed in the strategic planning context of four key documents published by the Executive: – The Programme for Government 2011-15, The Investment Strategy 2011-21, the Economic Strategy 2030 and the Building a United Community Strategy. 1.16 The Business Plan was monitored and reviewed on a quarterly basis by the Departmental Board. 1.17 The Business Plan contained 58 key targets to achieve in 2015-16. The Department successfully achieved 45 of the targets within original timescales.
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