Cabinet Office Annual Report and Accounts 2014-15 HC 23 Cabinet Office Annual Report and Accounts 2014-15 (For the year ended 31 March 2015) Accounts presented to the House of Commons pursuant to Section 6 (4) of the Government Resources and Accounts Act 2000 Annual Report presented to the House of Commons by Command of Her Majesty Ordered by the House of Commons to be printed on 17 September 2015 HC 23 This is part of a series of departmental publications which, along with the Main Estimates 2014-15 and the document Public Expenditure: Statistical Analyses 2015, present the Government’s outturn for 2014-15 and planned expenditure for 2015-16. © Crown copyright 2015 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, 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 available at www.gov.uk/government/publications Any enquiries regarding this publication should be sent to us at [email protected] Print ISBN 9781474118637 Web ISBN 9781474118644 ID 07051501 09/15 51463 19585 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty’s Stationery Office Contents Page PERFORMANCE REPORT Overview Foreword 9 Who we are and what we do 10 Performance Analysis Our Performance 18 Performance on Business Plan objectives 20 Spending summary 28 Sustainable Development 29 Financial Review 37 ACCOUNTABILITY REPORT Corporate Governance Report Performance Report by Lead Non-Executive Director 64 Directors’ Report 65 Statement of the disclosure of relevant audit information 75 Statement of Accounting Officer’s responsibilities 76 Governance Statement 78 Remuneration Report 93 FINANCIAL STATEMENTS The Certificate and Report of the Comptroller and Auditor General to the House of Commons 109 Statement of Parliamentary Supply 111 Notes to the Statement of Parliamentary Supply 112 Consolidated Accounts 119 Notes to the Consolidated Accounts 123 Cabinet Office Annual Report and Accounts 2014-2015 This page is intentionally left blank. Page 6 Cabinet Office Annual Report and Accounts 2014-2015 Performance Report Page 7 Cabinet Office Annual Report and Accounts 2014-2015 This page is intentionally left blank. Page 8 Cabinet Office Annual Report and Accounts 2014-2015 Foreword In this final year of the 2010/15 coalition government, the Cabinet Office continued to deliver exceptional results in a wide range of areas: improving cross-governmental working, expert support and intelligence to the Prime Minister, and much more. During the year, John Manzoni took up the new post of Chief Executive of the Civil Service, with a focus on making government more effective and efficient, particularly improving Richard Heaton CB delivery. Under his leadership we have pushed ahead with the building of strong professional functions across the service, which will develop capability and help transform Permanent Secretary for how government works and deliver real savings for the taxpayer. the Cabinet Office, First Parliamentary Counsel We played our part in ensuring a legal, fair and decisive Scottish referendum. And we and Principal Accounting successfully put in place a new system of individual electoral registration ahead of the Officer1 general election. We continued to encourage innovation and creativity in the community, social and voluntary sectors as well as within government: expanding the social investment market, applying new techniques to policy-making, and promoting social action. The Cabinet Office is home to some of the best public servants in Britain, and I am confident that we will continue to serve ministers well during the new Parliament. I would like to thank all my colleagues who worked so professionally and enthusiastically throughout last year. 1 Richard Heaton held the posts of Permanent Secretary and Principal Accounting Officer until 31 August 2015. From 1 September 2015, John Manzoni assumed these responsibilities. Page 9 Cabinet Office Annual Report and Accounts 2014-2015 Who we are and what we do Who we are We are privileged to be tasked with some of the most important issues facing the country: from making government more efficient to supporting the voluntary sector through challenging times; from tackling the growing menace of cybercrime to overseeing UK honours and awards. The Cabinet Office supports the Prime Minister, and ensures the effective running of government. In 2014-2015 we also supported the Deputy Prime Minister We are also the corporate headquarters for government, in partnership with HM Treasury, and we take the lead in certain critical policy areas. The Cabinet Office is supported by 21 agencies and public bodies. We work together to help government deliver exceptional public services and help the UK become a stronger and fairer society. What we do • We support collective government and help to ensure the effective development, coordination and implementation of policy. • We support the National Security Council and the Joint Intelligence Organisation, coordinating the Government’s response to crisis and managing the UK’s cyber security. • We lead reforms to make government more effective and efficient, particularly through the development of cross-cutting corporate functions which are building capability at the centre and across government, helping to improve decision-making and the management of major projects, and drive efficiency. • We promote the release of government data and make the way government works more transparent. • We lead on Civil Service reform, driving culture change, building an open inclusive and fair organisation, improving capability and effectiveness. • We promote social action and the National Citizen Service, and grow the social investment market. • We undertake political and constitutional reform. Page 10 Cabinet Office Annual Report and Accounts 2014-2015 How we are structured (as of 31 March 2015) Page 11 Cabinet Office Annual Report and Accounts 2014-2015 Our leaders and their responsibilities Until 31 August 2015, Richard Heaton was our Permanent Secretary and head of the Cabinet Office. He was responsible for the leadership and governance of the department and was the Cabinet Office’s Accounting Officer. Richard was also First Parliamentary Counsel and, in this capacity, oversaw the Government in Parliament Group which includes Parliamentary Counsel and the business managers in each House of Parliament. Richard Heaton CB Permanent Secretary In April 2014 Richard also became the Civil Service Race Champion. for the Cabinet In 2014-2015, Richard led the following teams: Office • Government Innovation Group • Government and Cabinet Office Communications • Government in Parliament • Corporate Services (comprised of Finance, Human Resources, Knowledge and Information Management, Corporate Strategy, Digital and Technology and Cabinet Office Legal) Page 12 Cabinet Office Annual Report and Accounts 2014-2015 The Chief Executive of the Civil Service has executive control over the key functions that make government as a whole work more effectively and improve Whitehall’s ability to deliver. He works with permanent secretaries across government to put in place reforms to build capability, improve implementation, deliver efficiencies and improve effectiveness, deliver better services for the public and at lower cost for taxpayers. This John Manzoni includes: • the digital transformation of public services and the way government works Chief Executive of • getting a better deal for taxpayers from commercial decisions and supplier the Civil Service management • ensuring we have the best people with the right skills throughout the Civil Service • making better use of the government estate (property) • managing major projects better to deliver on time and on budget • greater use of shared services across departments The Chief Executive sits on the Civil Service Board and attends Cabinet. The Chief Executive supports the Cabinet Secretary and Head of the Civil Service in performance-managing the other Whitehall permanent secretaries. In 2014-2015, John Manzoni led the following teams: • Civil Service Group • Civil Service HR • Government Digital Service • Major Projects Authority • Commercial • Government Property Unit • Fraud, Error and Debt • Transformation On 1 September 2015, John Manzoni was appointed Permanent Secretary for the Cabinet Office and Principal Accounting Officer. Sir Jeremy Heywood is the Head of the Civil Service, Cabinet Secretary and the Prime Minister’s most senior policy adviser, and he acts as Secretary to the Cabinet, responsible to all ministers. He was appointed Head of the Civil Service from September 2014, in succession to Sir Bob Kerslake. In 2014-2015, Sir Jeremy led the following teams: Sir Jeremy Heywood • Prime Minister’s Office Cabinet Secretary • Deputy Prime Minister’s Office and Head of the Civil • Economic and Domestic Affairs Secretariat Service • Implementation Group • European and Global Issues Secretariat • National Security Secretariat • Civil Contingencies Secretariat • Joint Intelligence Organisation • Propriety and Ethics • Church Appointments Page 13 Cabinet Office Annual