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Trademark acknowledgement

Ordnance Survey, the OS Symbol, ADDRESS-POINT, askGIraffe, Code-Point, DNF, Land-Line, Land-Line.Plus, Landranger, NLUD, Pathfinder and Superplan are registered trademarks and Digital National Framework, Explorer, Get-a-map, MapZone, Meridian, OS, OS MasterMap, OS Select, Our Favourite Places, Outdoor Leisure, Pre-Build, PRISM, Routeplanner and TOID are trademarks of Ordnance Survey, the national mapping agency of Great Britain.

Abbey National is a registered trademark of Abbey National plc. Autodesk is a registered trademark of Autodesk Incorporated. Barclays is a registered trademark of Barclays Bank plc. Centrica is a registered trademark of GB Gas Holdings Ltd. Digimap and Edina are registered trademarks of the University of Edinburgh. East Midlands Electricity and PowerGen are registered trademarks of The Power Generation Company. EuroGeographics is a registered trademark of EuroGeographics. Flemings is a registered trademark of JP Morgan Chase & Co. John Lewis is a registered trademark of John Lewis plc. Kelloggs is a registered trademark of Kellogg Company. Milupa is a registered trademark of Nutricia International BV. Oracle is a registered trademark of Oracle Corporation. PointX is a registered trademark of PointX Ltd. SAP is a registered trademark of SAP Aktiengesellschaft Systeme. Siemens is a registered trademark of Siemens Aktiengesellschaft. Sun is a registered trademark of Sun Microsystems, Incorporated. Trimble is a registered trademark of Trimble Navigation Ltd. Windows is a registered trademark of Microsoft Corporation.

Ordnance Survey acknowledges all other trademarks.

© Crown copyright Annual Report and Accounts 2001–02

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 17 July 2002

HC892 London: The Stationery Office £16.60

1 2 Contents

Chief Executive’s statement 4

Report of the Principal Finance Officer 8

Targets and actual performance 10

Our Directors 11

Some highlights of 2001–02 12

Underpinning public services 14 Joined-up geography to modernise government Exchanging expertise Putting our work on the map A commitment to education

Developing the market by stimulating innovation 20 OS MasterMap – beyond the DNF Supporting our partners Introducing innovation Pricing and licensing Ordnance Survey Outdoors Show

Focusing on our customers 28 One-stop shop for customer service Our new web site Online gateway to customer service Mapping round the clock

Building a solid foundation to meet our vision 30 Software systems for customer satisfaction Enhancing today’s infrastructure Surveying the country from top to toe Online service

Shaping our business for future success 34 Motivating teams from the top Learning from external experience and expertise Enhancing skills and recognising potential Raising the return on our assets

Recruitment activity 38

Customer satisfaction survey 39

Safety, health and environmental review 40

Annual Accounts for the year ended 31 March 2002 41

3 Chief Executive’s statement

Events at both home and abroad Playing a leading role in national life In addition, we continue to develop have brought many challenges and is certainly not a new experience for the Global Positioning System (GPS) opportunities during the past year. I us; for many years our data has services available on the National am, however, very pleased to report added value to the everyday lives of GPS Network web site – that we have succeeded in meeting millions of people. Indeed, only three www.gps.gov.uk. During the past year all the performance targets set by years ago independent experts we have been working with Ordnance the Government and that our growing estimated that our data underpins Survey Ireland and Ordnance Survey revenue passed £100 million for the around £100 billion of economic Northern Ireland to create a new first time this year. activity in Great Britain each year. geoid model that will convert GPS derived heights to Ordnance Survey As the mapping agency of Great With the development of new datum heights to an accuracy of a Britain, Ordnance Survey’s consistent, products, such as OS MasterMap™ – few centimetres. definitive and comprehensive data our groundbreaking new concept in provides a fundamental framework mapping – we believe that this Work has also taken place to further that underpins many areas of contribution will continue to grow as improve the accuracy of our national life. more and more organisations use it coordinate transformation service as the underlying framework for linking together National Grid Initiatives have ranged from providing joining up information from both the references and GPS coordinates. In highly-detailed mapping of rural public and private sectors. early summer 2002 we will be areas to help tackle the spread of releasing a new coordinate foot and mouth disease to supplying Our data is, therefore, not only a transformation that doubles the the geographical data underpinning valuable and fundamental part of our accuracy of the current system to the 2001 Census, and from helping to work, but its constant revision makes within 10 centimetres. boost tourism by encouraging people it an invaluable asset to Great Britain back into the countryside to as a whole. Around 5 000 daily This will make a significant difference supporting the national curriculum in changes to our database provide our to those needing a high level of schools with two exciting education customers with the most up-to-date precision in their work, such as civil initiatives – free maps for 11-year-olds geographical information available, engineers, land and hydrographic and Our Favourite Places™, an online helping to join up both organisations surveyors, field data collectors and tourist guide especially for children. and the services they offer. earth scientists.

4 Pioneering products companies and other organisations widespread tightening of purse preparing work schedules and strings. Yet in spite of the widespread Undoubtedly the highlight of the year operations in a specific area have had closure of the country paths and for both Ordnance Survey and many to source information about planned declining visitor numbers inevitably of its customers was the November developments from the individual affecting sales of our paper map 2001 launch of OS MasterMap. The developers involved. By doing this work products during the first quarter, delivery of this revolutionary new for them, we can offer highly-detailed sales recovered strongly to end the database and online service, featuring digital mapping pinpointing buildings year on target. definitive digital data for the whole of and roads before they are built. Great Britain, on time and to budget The July launch of our biggest-ever was the culmination of two years of Changing conditions, integrated marketing campaign for work at a total cost of £17 million. consistent data paper maps played an important part in reversing the trend. With the OS MasterMap provides intelligent While 2001– 02 has been a strapline Your passport to Great and accessible data with the flexibility successful year for us in so many Britain, the campaign was a major to link information across and ways, our business is not immune to initiative to help rebuild confidence in between organisations. With more market downturns. We too have faced the countryside and aid the than 100 customers in the first four many challenges over the past regeneration of the rural economy months, we firmly believe our 12 months as a result of both global through leisure and tourism. This strategy of investing in market- and national events. commitment continued with our leading products is right for the sponsorship of the Ordnance Survey continued success of the business Rural economies reliant on tourism and Outdoors Show – the UK’s and the greater prosperity of Great agriculture were dealt a double blow biggest-ever exhibition for outdoor Britain. during the period of this report, first enthusiasts. with the outbreak of foot and mouth, Pre-Build™ data is another example of then by the downturn in international Sales of our digital products also how we are developing products by travel after the terrorist attacks of 11 overcame unfavourable economic listening to our customers and September. The after-effects of these conditions to end the year slightly responding to their specific needs. Up events reverberated across many above target. While retaining our to now, utilities, telecommunication market sectors, resulting in a position in traditional markets, the

5 widely-anticipated breakthroughs in greater responsibility for our own accolade was also awarded to our newer hi-tech industries, such as business planning and finances. We e-business strategy by the Office of telecommunications and must also ensure we balance the the e-Envoy, which further location-based services, were slower public interest aspect of our work demonstrated confidence in our to materialise. with our commercial activities to plans. sustain any investment programme. Nonetheless, there were advances, The trading loss recorded this year is and with products such as Last year we stated our intention to the result of our deliberate decision OS MasterMap and our new GPS transform Ordnance Survey to invest for the future rather than services, we have been at the technologically, commercially and hold back to balance the books. It is forefront of supplying the data that culturally. Today’s organisation is a carefully planned strategy, which is underpins several pioneering projects already radically different to that of a enabling us to drive towards our in this sector. year ago, but we know that there is vision that, together with our still much work to do to deliver the partners, we will be the content Many of our partners also performed range of services and products that provider of choice for location-based well during the past year, introducing our customers expect. information in the new information new products and services that add economy. value to our data. These partners, We are working to a comprehensive including those developing innovative financial plan that projects significant This year we launched our developer new applications, are vital to the investments over a three-year period programme for innovators and growth of our business and have a with profits recorded in the past two entrepreneurs who are creating new key part to play in achieving our years funding new developments. ways to use our data. Once this goals. This represents the most intensive year-long research and development investment programme ever to be phase is completed we hope that Investing for the future undertaken by Ordnance Survey. they will progress to become full partners. These partners add value Ordnance Survey has operated as a Ministerial approval for our three-year to our data by using it as the bedrock Trading Fund since 1999. While this Business Plan represents for a huge range of applications that gives us more scope to develop new Government support for our direction provide solutions for a wide variety of initiatives, with this freedom comes and vision. The highest possible customers.

6 Vanessa Lawrence demonstrates OS MasterMap to Sally Keeble MP, our Minister for the period of this report.

We are also investing more heavily During the past year three new status. Announcing the results of than ever before in our infrastructure, directors with extensive experience of Stage One of the review, our Minister acquiring vital new technology to the geographical information industry during the period of this report, Sally transform the organisation to meet have joined the organisation – Keeble MP, said in December that the challenges and opportunities of Managing Director of Digital Brands, she was minded to accept the the information age. Our customers James Brayshaw; Chief Technology recommendation to set up a are already benefiting from this Officer (CTO), Ed Parsons; and government-owned public limited reinvestment programme with Director of Data Collection and company with government owning ongoing improvements to our data, Management, Neil Ackroyd. We also 100% of the shares. A second stage equipment, service and staff training. welcomed Piers White as a Non- is now underway to look at the costs, Executive Director. He succeeds benefits and practicalities of such a Our people, as well as our products, Michael Pattison CBE, who served move. We expect a final decision to are also one of our most important four years on our board. be made by the summer. assets and staff development has been another key investment area in We also said goodbye to two other The future can never be certain, but the past year. directors. Nick Land left Ordnance our continued development and Survey to become the first Director of commitment to progress and A major new initiative to transform EuroGeographics®, the association of customer satisfaction is assured. We our business culture at every level European national mapping recognise that there is still much reached its first milestone with a organisations, while Ian Logan retired work to be done in achieving our week-long interactive event in after many years of service. vision but we are confident that we December called the OS Experience. can face the challenges of the future Attended by some 1 853 staff We have also reorganised the whole to deliver even more benefits to Great (around 96%), it was a springboard organisation, including forming two Britain than ever before. for change that gave every employee customer-focused business groups the opportunity to learn more about for graphic and digital brands, each our vision and prepare for the future. headed by a Managing Director who is in turn supported by a Head of Recruitment of new employees at Marketing and a Head of Sales. all levels of the organisation, as well as recognising and developing The year ahead potential among our existing staff, Vanessa V Lawrence has also been crucial in ensuring As I write we are expecting a report we have the right staff with the core on the findings from Stage Two of our Director General skills to take the business forward. Quinquennial Review into our future and Chief Executive

7 Report of the Principal Finance Officer

Operating results Year to Year to Despite a difficult trading 31 March 2002 31 March 2001 environment, Ordnance Survey has £’000 £’000 successfully progressed an Turnover from operating activities 102 631 99 558 ambitious investment programme to grow future revenues. Profit/(loss) on ordinary activities (7 562) 8 106 Investment programme 35 339 19 467 Turnover from operating activities grew by over 3% to £102 631 000. This was a satisfying result in the delivering future revenue growth by by more than 80% to a total spend of context of economic circumstances. developing new products, delivery £35 339 000. The programme Several major markets for our mechanisms and business resulted in additions to fixed assets products were depressed through infrastructure. In the year, this of £13 438 000, which principally most of the year. For instance, many investment required a draw-down constitute IT assets depreciated over customers in the high-tech sector, against reserves, incurring an less than 5 years. As a result, and telecommunications in particular, operating loss of £7 562 000. This depreciation charged in the year have deferred investment result is consistent with Ordnance increased to £6 442 000 (2000–01 – programmes in the light of the Survey’s business model to achieve £4 610 000), and we expect to difficult global trading environment. an average 9% return on capital experience similar increases over the Similarly, consumer demand for our employed over five financial years next two years as this profile of paper maps suffered as a result of commencing on 1 April 1999. capital expenditure continues. the foot and mouth outbreak, and However, the majority of investment reduced tourist activity generally. Investment programme spend was on non-capital items, notably re-engineered data within the The financial year 2001–02 The level of investment, as noted National Topographic Database. This represented the first full 12 months of above, accelerated dramatically over reflects Ordnance Survey’s an investment programme which is the previous year. Taking capital and commitment to enhancing and bringing about a step-change in non-capital investment expenditure extending the content, currency and Ordnance Survey’s commitment to together, the programme increased accuracy of its data for the future

8 benefit of its customers. It also helps As far as the brand is concerned, the autumn 2000, NAO have assessed to increase the value of the accounting position is clear – the various methods of calculating a contribution that Ordnance Survey Financial Reporting Standard 10 value for the data, proposing a value makes towards promoting growth of (FRS10) prohibits the capitalisation of not less than £50 million on the use of geographic information as well of internally generated brands. basis of future income generation. as the value of the underlying data Ordnance Survey takes a similar view itself (see below). This is the core of with respect to the data, arguing that There has been no material change Ordnance Survey’s vision. the data is akin to intellectual in Ordnance Survey’s position since property and as such is an intangible the creation of the Trading Fund in Capital and reserves asset. Under FRS10, internally 1999, and we continue to disagree generated fixed assets are with NAO over the accounting The movement on the General capitalised only where there is a treatment of the data. This issue is Reserve, reducing by £6 163 000 to readily ascertainable market value not unique to Ordnance Survey nor to £35 320 000 at 31 March 2002, evidenced by an active market in Government, and is a topical principally reflects the retained loss similar assets. As the data held in the example of the wider international for the year. In contrast, total databases is unique and has never debate over reporting intangibles and recognised losses were £3 949 000, changed hands, we consider that no the true value of businesses in resulting from the revaluation of value could be attached to it in the financial statements which the fixed assets in accordance with financial statements. Instead, Accounting Standards Board will be Treasury rules. Long-term loans ongoing costs of maintaining the data actively investigating. Ordnance continued to be paid off in have been charged to the operating Survey continues to monitor accordance with the terms agreed at account as incurred, and its developments, and in the meantime the commencement of the Trading accounting treatment and importance urges readers of these financial Fund on 1 April 1999. These as an intangible asset disclosed by statements to take account of the movements, together with an way of a note. value of both the Ordnance Survey increase in long-term provisions for brand and geospatial data in early retirement of £1 606 000, Our auditor, the Comptroller and generating current and future result in a net reduction in capital Auditor General who is the head of revenues and, in turn, their value to and reserves of £3 180 000, to the National Audit Office (NAO), has stakeholders such as customers and £81 933 000 at 31 March 2002. qualified the audit certificate each the UK economy. year since 1999–2000. He argues The value of the business that the data comprises an accurate Outlook representation of a physical reality There is growing recognition across that is not affected by opinion, taste, Ordnance Survey is committed to the business and accounting fields judgement, reputation or belief and continuing to invest accumulated that annual financial reports fail to therefore differs from other intangible reserves and future revenue to adequately represent the underlying assets such as brands, and should enhance our data and product value of the organisation – therefore be capitalised in offerings. As a broader range of specifically, the intangible assets and accordance with FRS15. customers make ever wider use of non-financial measures that are the our products to enhance their own true drivers of future value. For Furthermore, NAO consider the data business effectiveness, we will seek Ordnance Survey, there are two to be analogous to internally to reduce unit prices while generating principal intangible assets: the generated software which, when increased revenues to fund this Ordnance Survey brand itself and the used in conjunction with database investment. The Board believes that data held in our geospatial management systems and Ordnance Survey will achieve the databases. Unquestionably, these associated hardware (both of which surpluses required under the Trading assets would have significant value if Ordnance Survey does capitalise), is Fund Order, and from 2004–05 put up for sale but are not reflected of continuing use in the business and commence dividend payments to our on the balance sheet. Nevertheless, which supports the generation of government sponsors. the reader of Ordnance Survey’s future economic benefits. In the financial statements must take these opinion of the NAO, it is therefore assets into account when seeking to inappropriate to capitalise the understand the true value of database management system and Ordnance Survey’s business and that hardware in the balance sheet David Willey of the asset base that will be used to without also recognising the value of Deputy Chief Executive generate future growth. the data itself. In a report prepared in and Director of Business Change

9 Targets and actual performance

Agency Performance Monitors Target Actual 2001–02 performance

Finance Revenue target £85.6m £86.6m (excluding NIMSA and non-trading)

Output Real world features At least 99.5% 99.8% represented in the database within six months of completion

Quality of Service Despatch small-scale 93% within 95.5% map products ordered two working days

98% within 99% ten working days

Efficiency Achieve efficiency savings 3% 8.1% associated with data collection, against the baseline against the baseline producing and distributing of 1999–2000 products and services and support activities

Environment Reduce carbon emissions from At least 1% 38% Ordnance Survey Headquarters year on year

E-business Increase the number of visitors 50% 71% to the Ordnance Survey website

10 Our Directors

Vanessa Lawrence David Willey Neil Ackroyd James Brayshaw Director General Deputy Chief Executive Director of Data Collection Managing Director and Chief Executive and Director of Business and Management of Digital Brands Change

Steve Erskine Bryan Nanson Ed Parsons Duncan Shiell Managing Director Director of Human Chief Technology Officer Head of Strategy of Graphic Brands Resources and Corporate Services

Non-Executive Directors

Gwynneth Flower Lynn Mathieson Piers White Michael Pattison CBE

11 August 2001 first point of contact for all Some enquiries about Ordnance Survey. • HM Land Registry (HMLR) is the highlights first customer to benefit from a January 2002 secure web gateway giving of 2001–02 personalised online access to • Our Favourite Places, the first products and services. online national tourist guide produced by children for children, ‘From our point of view this exciting is launched as part of our development builds on, and is a logical next new-look MapZone™ web site. step to, joint activities that have gone on over the last two years to develop our business ‘At a time when the government and the tourism relationship. It is really putting working together industry are working hard to win back tourists, it Our successes during the past year into practice.’ is very welcome that young people are doing have been many and varied. Many their bit to attract visitors to Britain’s rich and of our achievements are described Bob Ashwin, HMLR’s Director of Geographic varied attractions.’ in the following pages. Here are just Information. a few of the highlights... Dr Kim Howells MP, Minister for Tourism, September 2001 Film and Broadcasting at the launch of April 2001 Our Favourite Places. • We celebrate two separate • We source approximately 1 390 honours from the Office of the February 2002 handheld GPS kits and provide e-Envoy. Our e-business strategy data, paper mapping and staff to secures the highest award for • The Rural Payments Agency (RPA), help the government fight foot and meeting the vision that all dealings an Executive Agency of DEFRA, mouth outbreaks across Britain. with government should be becomes the first government capable of online delivery by department to use OS MasterMap. May 2001 2005. Vanessa Lawrence is appointed a Government March 2002 • Our main web site is described as e-Champion. ‘outstanding’ and receives a • Outdoor enthusiasts flock to the maximum five star rating in a October 2001 hugely successful Ordnance Sunday Times table. Survey Outdoors Show at the NEC • Tourists at the New Forest Visitor in Birmingham where our new-look ‘This outstanding site gives access to the vast Centre try out our trial interactive OS Landranger Maps are unveiled. banks of authoritative material at the disposal touch screen kiosk which allows of Britain’s national mapping agency…This is them to print out tailor-made mini ‘Walkers in Britain are lucky. Not only do we achieved with such simplicity, it makes one versions of our most popular have a real variety of landscapes but also some rather proprietorially proud.’ maps. of the best maps in the world.’

The Sunday Times, May 2001. November 2001 The Rambler, Winter 2001.

June 2001 • Launch on time and to budget of OS MasterMap – a massive We are delighted to support the • Development of the Digital database and online service work of newly formed Cancer National Framework™ (DNF®) developed under the project title of Research UK, our corporate reaches a significant milestone as the DNF. charity for 2002. At a national level the Early Adopters Testbed goes we are one of the sponsors of live on schedule. The testbed ‘Because it is web friendly, we can network cycle for life, a major fundraising allows core customers and OS MasterMap across our Intranet and allow all initiative supporting research into partners to order test DNF data our officers to see the location of calls. We can cancers that affect men. We are from a number of areas using a highlight down to the corner of a building where also the local sponsor of the web-based product selector. a crime has been committed.‘ hugely successful Race for Life event in Southampton. Our web July 2001 Bob Ovens, Deputy Chief Constable Dumfries site will support both initiatives and Galloway Police. with mapping, event information • We champion a responsible return and a link to the Cancer Research to the countryside with a package December 2001 UK web site. of improvements to our paper map range and our biggest-ever • The first calls are taken at our new promotional campaign. Customer Contact Centre – the

12 13 Underpinning public services

Each feature in OS MasterMap has a unique Topographic Identifier or TOID™ that enables the easy exchange of information across and between organisations in both the public and private sectors.

‘It’s only when you start looking at the many As part of government – we are an the foot and mouth outbreak, we also benefits that geographic information can bring Executive Agency and an independent supplied digital data and used our to society that it becomes clear how significant department in our own right – we are expertise to source a large number of intelligent mapping can be in improving the responsible for creating and updating handheld GPS kits to help speed up good governance of this country and enhancing the definitive map of the whole of work to control the disease with the quality of life for the citizen.’ Great Britain to a consistent standard. precision and accuracy. This includes the most detailed Sally Keeble MP, Minister for Ordnance Survey mapping of remote areas, which is in More than 120 Ordnance Survey during the period of this report. part funded through the National staff were also seconded to the then Interest in Mapping Services Ministry of Agriculture, Fisheries and Ordnance Survey’s economic Agreement (NIMSA), our agreement Food (MAFF) – now the Department contribution to Great Britain is with the government to fund specific for Environment, Food and Rural enormous, with both our data and mapping activities that could not be Affairs (DEFRA) – offices throughout services playing an integral part in justified on purely commercial grounds. the country. Among the assistance underpinning national life. NIMSA currently represents they provided was GPS training for approximately 15% of our total income. both British and foreign veterinary surgeons tackling the outbreak, The importance of NIMSA, which helping to control movement licensing also contributes to the administration of livestock and sharing their of emergency mapping practical knowledge of geographical arrangements, was demonstrated this information systems (GIS). year by our contribution to the fight against the spread of foot and mouth Our mapping for emergencies disease; a clear example of how our service, which also provides help and mapping plays a crucial role in the advice on the most appropriate national interest. products, brings together staff from our Southampton headquarters, our As well as providing over 46 000 nationwide field offices and many of emergency maps to those tackling our stockists.

14 Joined-up geography to the first government department to With many authorities at the modernise government use OS MasterMap. The data forefront of GI development, the underpins a new land register of local government sector is a Our link with the Office for National Britain’s 1.7 million land parcels fast-moving market that has been Statistics (ONS) is an excellent developed by the RPA, an Executive quick to test the benefits of example of how intelligent mapping Agency of DEFRA. OS MasterMap to improve services. can assist another government Its inclusion in the Local Authority agency to fulfil its public service role Currently, around 50 significant Service Level Agreement makes the efficiently and effectively, customers within government are data available to 570 local demonstrating the value of joined-up using our digital data for the easy authorities, police and fire services government. exchange of information across and and national parks. between organisations, joining-up Geographical information (GI) provides government, modernising systems Associating the different kinds of the structure for collecting, analysing and improving services. We have data with this multilayered digital and presenting statistical information been working hard to further mapping, will transform the way collected in the 2001 Census, which for strengthen this core-customer base public services are managed and the first time used our digital mapping. by offering all government delivered. For example, linking road departments access to our current junctions with traffic statistics to Putting population data into a clear, products under one single pilot reduce road deaths; public parks unambiguous geographical context agreement, the next phase of which with contractors’ details for more is essential for their work. will come into effect from April 2002. accurate maintenance estimates; ADDRESS-POINT®, our detailed and council tax rates to individual dataset of more than 25 million We also predict growth in the central buildings for more efficient revenue British postal addresses, provides government sector as more collection. ONS with an accurate, instant link departments use our data to help between a postal address and its meet online delivery targets and the Winning a contract to supply data to geographic location. It also enables government’s vision that all services the new Greater London Authority ONS to share and link information should be available electronically by (GLA) was a significant boost to our about individual addresses as each 2005. In the coming months we will figures and a further example of how one has a unique reference continue to investigate ways in which our data supports all levels of number. our data can support the wide range government. The GLA will use it in of online citizen information services London-wide strategic planning for DEFRA is also setting the pace for provided by government departments services, including housing, joined-up government by becoming and local authorities. education and transport.

15 Exchanging expertise events in Australia, Bahrain, Spain, Sweden and Ireland. During these As a world-leading, trusted supplier of official visits she has shared how mapping data, we are ideally placed Ordnance Survey has refocused to to raise awareness of the importance meet the challenges of the new of geographical information among information economy as well as key decision makers both at home promoting the power of GIS in general. and abroad. The three Ordnance Surveys – the Although our focus is Great Britain, national mapping organisations of our expertise is sought across the Ireland, Northern Ireland and Great world. During the past year visitors Britain – are also continuing to work from Kenya and South Africa, Korea, together to improve the consistency Brazil and China, as well as Europe, of their data and the ways in which have come to our head office to learn they deliver it to customers. To this about our activities. Coastal zone end they are developing a common mapping, land use databases, georeferencing standard for mapping surveying technology and agency data to support the OS MasterMap were just a few of the foundations for evolving spatial data topics discussed. In addition, we infrastructures (SDIs). Ordnance were delighted to welcome Pamela Survey Ireland has recently Malam, deputy director for the committed to using the unique eastern region of the US Geological Topographic Identifier (TOID) Survey, on a four-month secondment reference numbers in the same way to examine parallels between both as Ordnance Survey does in OS organisations’ e-business strategies MasterMap, and Ordnance Survey of and share expertise. Northern Ireland also plan to introduce this form of identifier in As well as welcoming overseas future products. All three mapping visitors to our offices, our agencies will continue to work representatives also play an active together to evolve greater ‘As government organisations, we should be international role in a range of harmonisation in the data they collaborative and not competitive. In the spirit of conferences and working parties. In provide. More information about the public service, any benefit that our particular, our membership of the three Ordnance Surveys is available organisations can gain by an exchange of ideas OpenGIS Consortium (OGC) allows online by following the links from the can only help to serve our citizenry better.’ us to play a key part in setting web sites of any one of the standards, for example the organisations. Pamela Malam, deputy director for the eastern development and adoption of region of the US Geological Survey. Geography Mark-up Language (GML). A team from Ordnance Survey was Ordnance Survey is pioneering the also seconded into the Association use of GML and was one of the first for Geographic Information (AGI) to data providers to adopt this new assist in the transfer of askGIraffe® global format for storing and from Ordnance Survey to AGI. transporting geographical AskGIraffe is a not-for-profit web site information. We are also represented gateway aimed at increasing on the management board and awareness and access to working groups of EuroGeographics, geographical information in the UK. It the association of European national plays an important role in the drive for mapping organisations, and have a joined-up government by telling the team working on changes to the land public what types of data are registry system in Croatia. available and where they can be found. The management of the web Our Director General and Chief site is funded by NIMSA and Executive, Vanessa Lawrence, has subcontracted to the AGI by also been a keynote speaker at Ordnance Survey.

16 John Walter Jones, Chief Executive of the Welsh Language Board congratulates Vanessa Lawrence on the launch of Ordnance Survey’s Welsh Language scheme.

Putting our work on the map and canvassing for votes on behalf of all candidates. In the first fortnight of Closer to home we held exhibitions in the site’s use, more than 300 000 maps Portcullis House in Westminster, the were sourced from the site by people Scottish Parliament and the Welsh involved in, or following, the campaign. Assembly, and attended each of the three national party conferences to As well as keeping the landscape of demonstrate how our latest products Wales fully mapped out, we have also can help enhance public services. worked to put the Welsh language on Throughout the year we also welcomed the map – in many cases quite an increasing number of MPs to our literally. More and more bilingual Southampton headquarters – including place names feature on our the Department for Transport, Local small-scale products, including our Vanessa Lawrence is shown a model of new Government and the Regions (DTLR) popular range of OS Landranger Maps, developments in the Kingdom of Bahrain Urban Affairs sub-committee. Explorer™ maps and OS Travel Maps. during the GIS 2002 conference, where she gave a keynote speech on the power of GIS This cross-party committee of MPs With the launch of our Welsh and the refocus of Ordnance Survey to reflect made a fact-finding visit away from Language Scheme during the year, the new information economy. Vanessa is their usual committee rooms at the we are taking this commitment one accompanied by (left) His Excellency Sheikh House of Commons for a formal step further with a promise to adopt Khalid bin Abdullah Al Khalifa, Minister of public hearing about our work. As this principle of equality in customer Housing and Agriculture; and (right) His well as the future potential of the relations, promotional literature and Excellency Sheikh Fahmi bin Ali Aljowder, business, the hearing also focused exhibitions. Appointing our first Welsh Minister of Works. on our pricing and licensing policies, Media Executive, Bryn Jones, is a our relationships with private and crucial step towards meeting the public sector customers and scheme’s objectives. A fluent Welsh partners, and the NIMSA contract. It speaker, his responsibilities include also heard that we came second in a managing and coordinating corporate MORI poll among MPs asked to rate marketing activities for Wales. 70 private and public sector companies and organisations for their favourability. In Scotland our team has been strengthened by the appointment of Our government relations programme Dr Hugh Buchanan, who works to not only raises awareness of our ensure that we understand work among MPs but also gives us a government policy and service valuable insight into how our objectives. Our Gaelic Names Policy computer mapping can help them in recognises the importance of the their work, and Ordnance Survey language in Scotland. A Gaelic Names launched its free election mapping Liaison Committee, facilitated by Dr Hugh Buchanan, Ordnance Survey’s web site as a valuable resource for Comunn na Gàidhlig and supported Parliamentary and Government Adviser for the 2001 General Election campaign. by a number of Local Advisory Scotland. Groups in the main Gaelic speaking The site featured individual maps areas, is reviewing all Gaelic names showing each of the 659 that appear on OS Landranger Map constituencies in the UK, along with and Explorer mapping to ensure detailed street-level mapping for every consistency of spelling across all area to help those delivering leaflets Ordnance Survey products.

17 A commitment to education sponsorship and the opportunity to undertake research with Ordnance As the provider of definitive map data Survey as an industrial partner. We for the whole of Great Britain, provide funding to a maximum of Ordnance Survey plays an important £500 as well as the data and part in making mapping available to technical support required to schools. complete the project. Students then present their findings at a specially Our free maps for schools scheme, organised workshop at Ordnance launched in March 2002, will give Survey. every 11-year-old in Great Britain the chance to own a free Explorer map of After a very successful first year, we their local area. With a potential retail are now assessing applications for value to schools of £5 million, it is one the 2002–03 programme. Possible of the biggest education initiatives of research areas include ancestry in its kind and could benefit as many as OS MasterMap, 3-D generalisation 750 000 pupils in 7 800 schools. for mobile mapping, and the investigation and collation of The Explorer maps (or Pathfinder® geographic footprints. equivalents in some parts of northern Scotland) provide vital help in Digital mapping data for both ‘There was a buzz of activity every time we geography, citizenship, local history academic research and teaching is worked with the maps. The pupils certainly and other studies. As well as helping also available from EDINA®, a benefited from them. They were ideal in children to develop their concepts of national datacentre based at the fieldwork and in follow-up lessons.’ distance, direction and scale, maps University of Edinburgh. In the first can support a wealth of problem two years of operation, its dedicated Clive Walters, head of geography at Morriston solving, decision making and other web site – EDINA Digimap® – has Comprehensive School, Swansea, which took essential life skills. They are made more than 450 000 maps on part in the free maps for schools pilot specifically mentioned in the English screen with 152 000 data files programme. and Welsh national curriculums and downloaded. In addition, 60 institutions the 5–14 National Guidelines in have signed up to the service and Scotland. this figure is expected to continue growing. The web site gives higher The free maps campaign follows the education students and staff access successful launch of Our Favourite to a wide range of our data products, Places, an online travel guide written including Land-Line.Plus®, by children for children. The web-based Meridian™2 and 1:50 000 Scale curriculum resource features a Colour Raster. detailed interactive map that can be personalised with photos, artwork EDINA Digimap has a number of and written comments. Our Favourite features that distinguish it from other Places is part of the new-look web-based mapping services. Users MapZone™ (www.mapzone.co.uk), can not only customise maps on our interactive web site created screen but can also create their own especially for children to discover the high-quality mapping by selecting important role maps play in everyday specific Ordnance Survey data tiles life. and importing them into suitable application software. A more Our support for higher education is advanced tool, Digimap Carto, offers demonstrated by our MSc flexibility of scale, content and map programme, which offers students size.

18 19 Developing the market by stimulating innovation

OS MasterMap – associated with other agencies’ social beyond the DNF deprivation indices and employment statistics to identify trends. Delivered on time and to its budget of £17 million as promised: the most OS MasterMap data is supplied in definitive, flexible and intelligent GML – the growing international digital mapping of Great Britain ever standard for storing and transporting produced. Unveiled at GIS 2001 geographical data. Because following two years of intensive work companies are rapidly moving and industry anticipation, towards e-business practices, OS MasterMap went online on 30 OS MasterMap is ordered and November 2001. delivered online (or CD/DVD), with manageable change-only update files With more than 100 key customers for greater business efficiency. ‘OS MasterMap is a major development. I after only four months, OS MasterMap believe it will significantly enhance the use of is setting new standards in digital The flexibility of OS MasterMap allows GIS within the UK. I would go so far as to see it data. Rapid growth in usage is customers to select the precise area as the most significant event in the UK GIS expected in the months ahead; in the of coverage they need, with a current industry in the past 20 years.’ public sector with the introduction of a choice from nine themed layers. And, pilot pan-central government service as it is not restricted by fixed map Andrew Duff, Technical Director of ESRI (UK). level agreement and in the private tiles, it is truly seamless. The result is sector with the gradual migration of a customer-focused data supply To achieve our vision, it is vital that key industry sectors from our Land- service, allowing users to choose and we position ourselves at the Line® data. A number of our Licensed pay for only the specific information forefront of the fast-paced Partners are currently working with they need. information economy, both in our OS MasterMap data and offer both outlook and the services and translators and software to maximise To date, we have invested a total of products we offer. its uses for our customers. £17 million in developing and delivering OS MasterMap. This is Unlike our other vector data products, only the beginning of our vision, with OS MasterMap data is polygonised to further investment planned to provide represent actual features, with a round-the-clock supply, additional inferred links creating a real-world layers of information and enhanced image. Over 400 million features – services through portals and from large land areas right down to customer web sites. Investment free-standing pillar boxes – have been priorities for 2002–03 lie with the given a unique reference number of provision of additional data layers up to 16 digits called a TOID. The such as points of interest, imagery, TOID acts as a hook that a number of integrated transport network, users can use to share information addresses, pre-build data and height. about the same feature, whether that We see this as an investment not is a building, field or road. For only in this unique georeferencing example, data on a neighbourhood’s system but also in the future of our incidence of poor health can be whole digital data portfolio.

20 Supporting our partners simulator and software for a video game are being developed using In September we launched a twin OS MasterMap data. programme of investment and support aimed at developing the The second strand of the partnership markets in mapping and initiative, launched in November, location-based services. As a data involves a targeted approach to provider, we do not compete in the existing and potential partners whose applications market. Instead, we work business ideas are ready to go to closely with partners who develop market. A package of investment innovative business ideas and underpins a range of benefits for software using our core data. partners, including e-business links, access to sample data and technical The first strand of our partnership and marketing support. This strand strategy is a web-based support coincided with the launch of programme for innovators with OS MasterMap, and work is already ideas that they want to develop. For well underway to develop the range minimal cost, developers receive up of applications and translators to £40 000 of sample data to work maximising the data’s potential. with non-commercially, and receive full technical support from us during Our partners create a wide range of their one-year contract. The applications and solutions for Developer Programme is open to customers, based on our data. For anyone, from individual entrepreneurs example, GeoBusiness Solutions has to multi-national companies. After developed a desktop GIS their contract has expired (or at any underpinned by Code-Point® data to time during it) there is an option to assist Odeon Cinemas with their become a full Partner, if appropriate. marketing strategies. Code-Point displays the location of around 1.6 This year 235 developers have million postcode units in Britain, a signed up to the programme, useful tool when combined with ‘Throughout our discussions we were including PowerGen® (East Midlands internal or external data for Odeon’s impressed by the determination of everyone we Electricity®), Sun® Microsystems and customer tracking and site location dealt with at Ordnance Survey to ensure the the International Centre for Digital analysis. basis of our partnership enhanced the value of Content. WAP (wireless application our unique car share software to the most protocol) and 3-G (third-generation) Another partner, JamBusters important people – our customers’ mobile technology is increasingly Software, provides employers with incorporating digital data for GIS technology-based car share and Stuart Mitchell, Director of JamBusters location-based services and, together workplace travel plan solutions to Software. with our partners, we are keen to reduce traffic congestion and on-site make further inroads into this market. parking strains. The software features The wide range of applications under interactive Ordnance Survey mapping development include radio wave and can be installed on a stand-alone propagation modelling and a PDA 3D PC, on a corporate Intranet or even virtual reality location finder. Among on a remote web server accessible others, an advanced driver training through the Internet.

GeoBusiness Solutions, an Ordnance Survey Licensed Partner, has developed a desktop GIS underpinned by Code-Point data to assist Odeon Cinemas with their marketing strategies.

21 Introducing innovation data, for example, through e-publishing, and examining new We ourselves continue to look for methods of data collection – in new ways in which we can help to particular the efficiency and cost introduce innovation to the savings of remote sensed data. marketplace. This year we have built on the work of PointX®, a joint A proactive technology tracking venture with a private sector partner programme supports this research by to create a definitive positional index of identifying the threats and millions of points of interest in Britain, opportunities to our business and both natural and man-made. The establishing research priorities. database, to be launched in autumn Our workshops are also proving to be 2002, will help meet the growing valuable opportunities to pull demand for information services using specialist groups together to explore mobile technology and the Internet. research issues such as generalisation, data quality and Our research team also plays an height. Future topics for discussion important role in helping us prepare include visualisation, imagery, spatial for future market developments cognition, databases, mobile devices through long-term projects. Market-led and GPS. The workshops allow us to research carried out over the past build a network of specialist contacts year includes the application of for specific subjects. generalisation techniques to the creation of Ordnance Survey They build on the success of our 1: 25 000 scale mapping and working skills database, launched in 2001, with the DTLR to create the county which allows universities and demonstrator for the National Land research organisations to register Use Database (NLUD®). We are also their interest in joining our Virtual exploring new ways of presenting our Research Unit.

22 23 Pricing and licensing Combining this data with market Our hugely popular 1:50 000 scale intelligence gained from customer Landranger® series has undergone a We are continually improving our loyalty programmes gives a spatial makeover to reinforce its position as practices to make it easier to do context in identifying customer needs the passport to town and country for business with us. A major strategic for effective customer relationship planning days out. The maps have a initiative of our e-strategy focuses on management. clearer specification and some new strengthening and developing our symbols to make map reading easier. existing markets and creating new OS MasterMap’s simple pricing Now sporting the OS brand prefix, opportunities. Pricing and licensing structure demonstrates our way the OS Landranger Map series form a core strand of this initiative, to forward, with a basic price related to retains its distinctive pink cover, but ensure that we stay in touch with the number of TOIDs ordered. There features a contemporary design and both our customers’ evolving needs is a sliding scale as the quantity inspirational photography. and those of the market. rises, but the overall cost is all inclusive, without separate licensing Many new Explorer titles at We use our experience at the and copyright charges. 1: 25 000 scale have been forefront of licensing government published this year, particularly in data for onward commercial Copyright administration has been Scotland. The remaining Pathfinder exploitation to produce appropriate cut to make the licensing process maps will be gradually replaced by pricing and licensing models for the easier for our business customers. Explorer titles by the spring of 2003. different markets in which our data is From less than £1 a week, business We have also merged our used. As a matter of principle we aim users can now make unlimited copies Outdoor Leisure™ maps, produced to make our pricing and licensing of our maps for use on web sites and at the same 1: 25 000 scale, into the arrangements simple, equitable and in many brochures, leaflets and popular orange-covered series, transparent so that we present a level catalogues. More than 13 000 creating just one range of maps for playing field for customers using our customers have taken advantage of the outdoor enthusiast. Our 2002 mapping within each market sector. the new arrangements, which are Great Britain Routeplanner™, eight simply based on the number of regional Road Maps and an We constantly review the pricing offices where copies are made, unlike expanded range of Tour maps have structure of our products, to ensure the old pay-per-copy system. New also been grouped into one new that our charges are appropriate. customers can sign up online via our series under the brand name This year we significantly lowered the web site. OS Travel Map. This practical series, cost of ADDRESS-POINT to make it which helps customers select the more accessible, with a more flexible In our drive towards e-business, we most appropriate map for their pricing structure based on the have certainly not forgotten our needs, will continue to grow in the geographic areas covered and the leisure customers. This year our next financial year. number of terminals on which the paper map products (including data is used. CD-ROMs) generated £8.8 million in Our popular Interactive Atlas of Great revenue. We have been listening Britain on CD-ROM went into its fifth We are confident that these changes carefully to our customers and have edition this year, with flexible will make ADDRESS-POINT more made some significant changes to 1:250 000 scale mapping for the accessible to customers who can use our paper maps, both in style and whole country on two discs. Special it to identify prospects for countless content. We have introduced new features of the atlas include business uses. For example, it can be titles, revamped some of our interactive symbols, specially used to display the location and best-loved series and simplified the selected 1: 50 000 and 1: 25 000 distribution of their customers’ whole process of choosing the right scale mapping extracts, animated addresses to provide a valuable map, with further improvements fly-through sequences and a map insight into purchasing behaviour. planned for the coming months. skills tutorial.

24 25 Ordnance Survey Outdoors Show

More than 27 000 people attended this three-day sell-out event in March at the NEC in Birmingham. Visitors enjoyed demonstrations and talks, took part in interactive activities and browsed 120 exhibition stands from companies associated with a wide range of outdoor activities.

We also previewed our new OS Select™ – Landranger®, an online personalised map service that allows people to order a site-centred map of their home or favourite place.

The show was a huge success and signalled our commitment to encourage a responsible and pleasurable return to the British countryside.

26 27 Focusing Our new web site In the information economy on our transactions are increasingly made online, both by business and leisure customers consumers. To reflect our brand values and promote our commitment to e-business, we have invested in enhancements to our web site www.ordnancesurvey.co.uk.

Developments include:

• a larger window on the free Get-a-map™ screen, making it One-stop shop clearer to view selected mapping; for customer service • a new OS MasterMap section, giving information about the We want to continually improve our product, its uses and links to customer service and aim to partners who have developed streamline our processes to provide a applications or translators; more efficient and helpful service for • a large section about our our customers. partnership strategy, including online information and application One of our main priorities this year for the Developer Programme; has been to develop a • MapZone, our web area for cross-Ordnance Survey customer children, which now includes Our relationship strategy. A key outcome Favourite Places, the online was the establishment of our tourism guide written by and for Customer Contact Centre (CCC) in children. MapZone has been December as the main point of added to Yahoo’s list of sites that ‘Internet Business Rating *****. contact into Ordnance Survey. By are safe for children to access; bringing together specialist staff in • an improved Leisure map shop If the government’s Ordnance Survey site is an various areas of customer contact, with a simpler purchasing facility. example of the shape of things to come, the the CCC is now a one-stop shop for Customers can select any map by 2005 deadline for getting public services online telephone, email and written its number and series, or search is the least of Mr Blair’s worries. The site is enquiries concerning: by place name, postcode or smooth, very deep and a cinch to navigate. National Grid reference to display Best of all, it’s actually fun to use. A five-minute • data supply; the relevant maps covering that surf becomes a worthwhile lesson in online • trade sales; area. The online shop has doubled excellence.’ • agents team; its business in the past year with • commercial sales (partners) and over 38 000 online orders; Internet Business, February 2002. commercial licences; • an improved search engine called • commercial contracts; Search Us, to make it easier for At Ordnance Survey we are • copyright; visitors to find what they are determined to put our customers • digital sales support; and looking for; and first, because we appreciate just • digital solutions. • a map edition checker to allow how important their needs are. We web site users to check that they constantly look for ways to Creating a one-stop shop for all have the most up-to-date map. improve our customer service, enquiries also means that our providing easier and more account management teams can The new-look site has proved so effective ways to do business with focus on working proactively with popular that it now receives over us. This year we have invested in both existing and potential customers 15 000 visitors each day. It has also improvements to our Customer to grow the business. We intend to received high accolades from the HelpLine, and alternative methods build on our customer relationship trade and media. New technology is for customers to access our strategy across Ordnance Survey in also being introduced which will mapping, both online and through the next financial year, and further enable even greater flexibility and site-specific outlets. improve services. functionality in the future.

28 Mapping round the clock

‘We believe the Ordnance Survey kiosk will be an excellent addition to the range of services we provide. The chance to produce instant, individualised maps is something which should prove extremely popular.’

Anthony Climpson, New Forest District Council Tourism and Publicity Officer.

A key aim of our commitment to put customers first is to make our graphic mapping available 24 hours a day, 7 days a week – not simply as off the shelf products, but through as many channels as possible.

In October the prototype of a map-printing kiosk was installed in the Lyndhurst Visitor Information Centre in the New Forest for a three-month period. Created by Avatar Interactive Ltd and Online gateway eMapSite.com, the kiosk allowed to customer service users to select an area of mapping on screen and pay for a high-quality As part of our new web site full-colour printout on either A4 or A3 development, we are creating paper at a scale of 1:50 000 or personalised secure sites for key 1:250 000. For central southern customers and partners. We have England, users could also choose spent a significant amount of time 1:25 000 scale plus street-level researching what our customers mapping. would like to see featured, and the findings have helped to shape our The kiosk generated a great deal of project strategy. interest among the public and the media, and the feedback from the The sites, which are still under trial has been invaluable. development, will provide a portal-style customised view of the public web site, as well as bespoke features for targeted customers, including secure documents such as account information and service level agreements. There is also access to forums, personalised contact details and technical information.

Our aim is to provide a more personal, tailored service to key customers and partners where the web can improve service delivery, boosting customer satisfaction and maintaining close business links. We are currently working with a number of users from a variety of organisations, and intend to develop this service further during the next financial year.

29 Building a solid foundation to meet our vision

‘[In Ordnance Survey] we now have a This year we have begun investing General and Chief Executive, forward-looking modern organisation with a heavily in a three-year programme of Vanessa Lawrence, was appointed £100 million income and a reputation for infrastructure improvements that is an e-Champion – one of a small technical expertise that is the envy of the led by our CTO, Ed Parsons. Since group of senior people in government world.’ autumn 2001, we have invested a chosen to drive forward the process total of £37.3 million in meeting our of helping the government meet its Mike Fort, Civil Engineering Surveyor, e-strategy. This includes £18 million e-delivery targets. February 2002. in enhancing our IT infrastructure and refining our internal processes to In March this year our e-strategy and To be able to deliver on our ensure that we can provide our modern business approach led to promises and achieve our vision in customers with a first-class service. recognition in the BT Vision 100 awards the current information economy, programme for 2002. The scheme we must have the technological Our e-strategy also ensures that we identifies 100 innovative and visionary capabilities to do so. meet Modernising Government UK organisations that have achieved targets for delivering all services strategic goals over 12 months, based electronically by 2005. By upgrading on five areas: visionary leadership, and integrating our business systems visionary human resource management, and processes, we will not only corporate social responsibility, simplify our ways of working but also intellectual asset management and benefit from cost savings and the connected enterprise. efficiency gains. Our customers will benefit from reliable access to all of Contenders were short-listed by a our web services and increased team of business journalists and capabilities for online transactions. researchers led by the Cranfield School of Management. A panel of Our commitment gained a double opinion leaders and analysts select boost this year: in September, the the final 100, where we featured Office of the e-Envoy awarded our alongside organisations such as the e-strategy the highest accolade, and Eden Project, the John Lewis® in the same month our Director Partnership and easyJet.

30 Software systems for project is likely to touch every Work has begun on upgrading the customer satisfaction member of our workforce, whether it WAN, which carries all electronic be through scheduling of work, traffic from our head office to In partnership with Siemens® recording of annual leave or through anywhere outside of our local Business Services (SBS), we are changing the way basic work network. This includes the Internet, investing in an organisation-wide processes are carried out. Rapid field offices and global positioning overhaul of our back office business integration of our databases into a stations. By upgrading our current systems and the business processes centrally-managed source of system, we will double the capacity to they support. Over the years, we customer contact information is also access the Internet and be able to have employed a range of different planned as part of our improvements move data between our offices at any best of breed applications across in Customer Relationship time of day. departments, but these do not easily Management (CRM). work together. A single, integrated The contracts will also provide off-site Enterprise-wide Software Suite (ESS) In-house, we are also investing in the web hosting and servicing, including will replace our existing range of rollout of Windows® 2000 to all OS MasterMap’s online service. This systems and processes – with desktops, laptops, printers, plotters means that our web customers will upgrades where necessary – bringing and back office systems, for have access to the latest information in significant efficiency and cost completion by summer 2002. more quickly than before. As such, savings. we are investing in developing our Enhancing today’s off-site hosting services. Following a detailed investigation into infrastructure possible solutions, we chose SAP® Our Local Area Network (LAN) has software that will be introduced over Following a Europe-wide tendering also been upgraded to underpin a period of three years. ESS will process, we awarded contracts to internal communication provide a simple and consistent route upgrade our Wide Area Network developments, including enhanced for all our staff to perform their daily (WAN) and to supply us with a range Intranet services. tasks, access systems and update of Internet and off-site hosting personal information. The ESS services.

31 Surveying the country by tiles is impractical and inefficient. from top to toe To streamline our processes, a new database is being developed to Our reputation as a world leader in provide a seamless maintenance our field is founded upon our ability to environment. provide high-quality, consistent and up-to-date mapping data that meets To support this, we are also making a the demands of both the public and substantial investment in the private sectors. With the face of development of a new hand-held Field Great Britain changing fast, our Object Editor system that will be national network of more than 400 compatible with the new database and field surveyors working from around will replace our surveyors’ current 70 offices nationwide, is responsible data capture system. Furthermore, for putting these changes on the map. broadband and cellular communications will, in the future, Our data-collection activities are enable our surveyors to access and another area of our work where we are update the OS MasterMap database taking advantage of new technology to more easily from field locations, and in drive forward innovation. We have contrast to previous systems, the data already undertaken a major investment can also be used by more than one in state-of-the-art GPS receivers person at any one time. These capable of centimetric level precision investments will yield efficiency for the capture of detail. Our surveying savings in the way we collect data and team combines these with a broad manage our databases, which are range of the latest hi-tech measuring already more up to date now than at techniques to digitally update our any other time in our 211-year history. central database and every day around 5 000 changes are made to the Online Service 400 million features already mapped out in it. Around 65 000 overlapping OS Master Map is setting new photographs, taken every year from standards in e-business, with online specially equipped aircraft, support registration, ordering and delivery of these ground-based surveys. data. Our online service went live at the end of November to coincide with To ensure that our customers receive the launch of OS MasterMap. So far, an optimum service, this year we over 250 customers have registered started upgrading the way in which online and over 100 contracts have we maintain and store our data. been created. The service enables Currently, data is updated and customers to generate an estimate maintained by surveyors in tile form for their area of choice, set up a (in blocks). Because OS MasterMap contract and order data for delivery is a seamless dataset, maintaining it either online or on CD or DVD.

32 33 Shaping our business for future success

We have embarked upon a two-year 2001. Our new corporate identity has programme to mobilise the entire been well received, although we organisation towards contributing to recognise that branding is only a our vision. The OS Experience was small step towards initiating a deeper the first milestone in the initiative, level of change to our corporate which we call Project Platinum. The business practices. OS Experience was a week-long interactive event that was a Motivating teams from the top springboard for the changes we must ‘…work to date has focused on building strong make in order to meet our business Employing the right staff with the teams within the organisation by making sure objectives. Attended by 1 853 people right skills is crucial to Ordnance that the right people are in place at all levels of (some 96% of our workforce), it gave Survey’s success in an ever-changing, management and gaining their commitment to every employee the opportunity to competitive marketplace. change.’ discover what our vision means for them and how they can contribute to Significant investments are being Engineering Surveying Showcase, October 2001. our success. Feedback and input from made in all our resources, not least employees was key to the success of our people who are one of our most With a vision that embraces the OS Experience. Wherever valuable assets. We are committed to technological change and a possible their views are now being developing a high performing, highly determination to play a pivotal role incorporated into our policy and plans. motivated organisation and were in the digital economy, Ordnance delighted to retain our Investor in Survey is marking a new era in its Following extensive market research People award for the fourth year history. To achieve our goals we and focus groups with customers, it running. Investment in the coming believe it is imperative to involve was decided that our corporate year will concentrate on enhancing every single member of staff, at all image was outdated and did not our sales capability. levels across the organisation, in accurately convey our modern brand our plans and aspirations. values and practices. A strong leadership team that is not afraid to make tough decisions to To bring our image up to date and meet the challenges ahead is crucial reflect both our e-strategy and to our success. Our Directors and progressive business model, we felt Senior Management team has been that it was time to rebrand. This did strengthened in the past 12 months not involve any change to our to mix the best of private and public well-established name or logo, but it sector skills and experience. External did introduce an overall modern recruitment to bring in new skills and corporate image based on colours of the appointment of interim managers fresh platinum and magenta, which are playing an important role in was launched in September at GIS shaping our workforce.

34 Learning from external for surveying and construction experience and expertise applications.

E-business engineering specialist Ensuring that we have the James Brayshaw, our new Managing infrastructure to underpin all our Director of Digital Brands, has a track business activities is CTO Ed record in successfully positioning Parsons, who is driving forward our new products as market leaders. He major investment in IT. Ed has was formerly Director of Sales at developed his whole career in the Bidcom Ltd – an e-construction geographic information and project portal and e-business location-based services industries, solutions provider to the construction, and joined us from Autodesk® Ltd, engineering and property markets. where he was GIS Applications James introduced US-based Manager for Europe, the Middle East Citadon’s ProjectNet to the UK and Africa. market and over the past 18 months has established ProjectNet as the The CTO evaluates the state of leading brand in its field. external markets to ensure that its needs are reflected back into the He is supported by Gill Woodward, business. One of Ed’s first tasks on our new Head of Marketing in Digital joining Ordnance Survey was to Brands, who has wide experience in integrate all business areas developing and managing markets responsible for IT into one and products in a number of sales, information systems department with marketing and management roles in clear roles and responsibilities. the IT sector. Joining our Non-Executive Directors Gill’s counterpart in the graphic brands this year is Piers White, an side of the business is Eric Bates, a experienced Financial Services marketeer who has held senior sales practitioner who has run substantial and marketing positions in companies businesses for Barclays® and, more such as Kelloggs® and Milupa®. recently, Flemings® and Abbey National®. For much of the last 20 Heading up our extensive Data years Piers has been involved in or Collection and Management initiated substantial change department of 740 survey, programmes. He brings a wealth of management, and support staff is financial and business management GPS and surveying specialist Neil experience to the Ordnance Survey Ackroyd. Throughout his career, he Board and his appointment – by our has been closely involved in defining Minister during the period of this new surveying standards in geodesy report, Sally Keeble MP – brings an and the adoption of GPS. additional external perspective to help guide our policies. Previously the European Technical Manager for location-based services During the past year we have also company Trimble®, Neil had a primary employed interim managers to help role in the adoption of GPS achieve specific objectives in areas technology across both the public such as business-to-business and private sectors, as well as marketing and the development of setting-up and developing Trimble’s our partnership programme. And the support organisation. He also recruitment of new staff, such as focused on managing the company’s professional lawyers in our business in the construction industry intellectual property and legal – developing the use of satellite, department, has also added valuable laser and conventional total stations expertise to our in-house skill base.

35 36 Enhancing skills and various IT skills, including software recognising potential development and supporting IT systems. We can now also carry out ‘Obtaining this qualification...has certainly made our own assessment of NVQ us more aware of what we do for our candidates working towards IT customers, proving to us that we can and qualifications following the successful frequently do provide excellent customer training and qualification of eight service.’ members of staff as assessors and Ordnance Survey’s accreditation as Susan Perrin, successful customer service an NVQ assessment centre. NVQ candidate. Raising the return The development of in-house staff is on our assets just as important as integrating new faces into the organisation and we Reducing our operating costs by are determined to enhance our efficiently managing our assets has existing skills as well as developing enabled us to become self-sufficient new ones. in the generation of our own electricity with a combined heat and Identifying and developing potential power scheme. The £1.4 million senior management and technical investment will be recouped through specialists is essential to the future of savings to our electricity bill and the business. Development centres, exemption from the Climate Change where staff can assess their levy. strengths and weaknesses, are a key part in ensuring we have fully trained, The scheme uses an on-site gas-fired capable and enthusiastic people to generator, which allows the entire meet our goals. During the past year heat for our headquarter’s buildings 135 existing staff were promoted into to be produced as a by-product of new roles. generating electricity for lighting, bringing Ordnance Survey into line Of course our surveyors benefit from with government initiatives to reduce ongoing training in all the latest data carbon emissions. collection techniques but we are also keen to develop the specialist skills Our new state-of-the-art Business we need to do business quickly and Centre helps to maintain our Our new state-of-the-art Business Centre. efficiently in the future. For example, reputation for being at the forefront of a number of our cartographers have mapping technology as well as attended courses that included providing a platform to display our graphic design to generate new ideas rich heritage. The £2 million facility, and explore new ways of presenting which can also be used by our information using technologies such partners and customers, includes a as Personal Digital Assistants (PDAs) 150-seat lecture theatre, two as well as traditional paper maps. conference and three training rooms, a multimedia exhibition area and a We also encourage staff who high-tech computerised mapping regularly deal with customers to demonstration area. study for the customer service NVQ, and last year 12 employees gained Returns on our assets are also this qualification; six at level 2 and six achieved through the rental of at level 3. Twelve members of staff Compass House, formerly our North were also successful in completing a Block accommodation. We have level 3 NVQ in management and a leased surplus space to HM Customs further 24 gained NVQs covering and Excise and P&O Nedlloyd.

37 Recruitment activity

The following information outlines Ordnance Survey’s recruitment activity during the year 1 April 2001 to 31 March 2002. Ordnance Survey is fully committed to the principles of fair and open competition and selection on merit laid down in the Civil Service Commissioners’ Recruitment Code. Systems are in place to ensure that recruitment is carried out in accordance with those principles. Application of the principles of the Code in the year April 2001 to March 2002 produced the results in the following tables:

Equal opportunities statistics by Ordnance Survey role

Total applications Role Total Male Female White Ethnic Non- Disabled minority respondent Senior Civil Service 228 203 25 40 0 188 0 Senior Manager (Head) 105 96 9 80 10 15 0 Senior Manager 829 696 133 651 50 128 7 Middle Manager 240 166 74 211 6 23 2 Technical/Business Manager 787 514 273 650 27 110 11 Technical/Business Officer 538 408 130 455 19 64 3 Technical/Service Provider 1328 796 532 1162 44 122 38 Support 447 338 109 392 15 40 55 Information Systems (combined boards) 117 100 17 91 5 21 4 Grand total 4619 3317 1302 3732 176 711 120

Selected for interview Role Total Male Female White Ethnic Non- Disabled minority respondent Senior Civil Service 24 21 3 3 0 21 0 Senior Manager (Head) 8 7 1 8 0 0 0 Senior Manager 41 26 15 32 1 8 0 Middle Manager 30 19 11 28 1 1 0 Technical/Business Manager 81 48 33 69 3 9 2 Technical/Business Officer 104 72 32 90 3 11 2 Technical/Service Provider 163 65 98 141 6 16 3 Support 74 45 29 68 0 6 0 Information Systems (combined boards) 31 25 6 25 2 4 0 Grand total 556 328 228 464 16 76 7

Successful at interview Role Total Male Female White Ethnic Non- Disabled minority respondent Senior Civil Service 3 3 0 0 0 3 0 Senior Manager (Head) 2 1 1 2 0 0 0 Senior Manager 7 3 4 5 0 2 0 Middle Manager 6 4 2 6 0 0 0 Technical/Business Manager 23 12 11 21 0 2 0 Technical/Business Officer 36 26 10 30 1 5 1 Technical/Service Provider 47 18 29 44 1 2 0 Support 15 10 5 13 0 2 0 Grand total 139 77 62 121 2 16 1

One person was re-employed.

38 Customer satisfaction survey

Serving our customers and serving Key findings from the Customer them well is of paramount Satisfaction Survey 2001 are importance to us. That is why we summarised below: remain committed to consulting those who actually use our products and • The majority of our customers are services, listening to customer generally satisfied with the current comments, and implementing the level and nature of contact with The survey has highlighted a number findings from our regular customer Ordnance Survey. of key strengths such as having satisfaction surveys. • About 85% of customers rated the knowledgeable staff, being friendly quality of Ordnance Survey’s and approachable, understanding A key element in helping us to better service as excellent to good. what the customer wants, and being understand the requirements of our • A little over 60% think that a specialist in mapping information. customers is the main customer Ordnance Survey is very good or satisfaction survey. Every year we fairly good at taking customers’ More importantly the survey has ask our leisure map consumers, needs into account. helped to identify and prioritise key business customers and partners for • There has been an increase in the areas for improvement, such as being their views on our service. This is number of courtesy calls made by flexible and adaptive to your needs. undertaken on an annual basis, Ordnance Survey. Ordnance Survey will continue to amongst consumers and our • Electronic communication between improve upon such areas. business customers/partners – in the Ordnance Survey and its year 2001 over 600 customers took customers has seen a significant In order to secure our future as the part. increase from last year – up 13% world’s leading mapping organisation for email and 19% for web. through achieving our vision of being The survey provides us with a • There has been an increase in the the content provider of choice for measure of customer satisfaction use of digital mapping data. location-based information in the new and commitment and helps us to • 72% of customers have not economy, one thing remains identify key areas for improvement. experienced any problem with the absolutely paramount: our level of service provided by commitment to serving our customers Ordnance Survey over the last 12 and serving them well. The following months. table shows the number of • Over 50% of those who have had customers who have contacted us for cause to complain were satisfied general enquiries and the number of with the outcome of their complaint. complaints and feedback received.

Results 2001–02 Total number of enquiries 78 809

Contact via: Phones 55 375 Emails 15 417 Fax/letter 8 017

Total number of complaints/feedback 2 761

We now provide a quicker, less formal process for registering complaints and feedback. A new email address appears on both our web site and on new map covers, making it easier to contact us.

39 Safety, health and environmental review

Safety and health

Our Directors place paramount emphasis on safety and health, and are constantly looking into ways of improving the safety, health and working conditions of staff. This table shows the accident statistics for the year:

Variations from Results 2001–02 2000–01 Accidents 92 -34.7% Days absence due to accidents 73 -37% Accident rate per 100 staff 4.7 -26.6% Days absence per accident 1.0 +25% Serious accidents reported to Health and Safety Executive 6 -54%

Figures include all Ordnance Survey permanent staff, contractors and agency staff.

Ordnance Survey has won the Environment impact on watercourses – and our RoSPA (Royal Society for the participation in the Prevention of Accidents) gold award Directors put great emphasis on the government-backed Watermark for the second successive year for environmental performance of the project, enable us to measure our achieving a high standard of health business. water consumption against and safety management in the benchmarks. workplace. To qualify for the award Following an environmental review, we had to demonstrate consistently which did not show any Additionally we have successfully good or continuously improving contraventions, we have started on installed a 1.67-megawatt combined accident prevention performance over the introduction of an Environmental heat and power (CHP) system that the last five years. Management System (EMS) to will reduce both energy consumption maintain and improve on that record. and carbon emissions from carbon To ensure proof of delivery of our An EMS allows our organisation to dioxide. health and safety management set up procedures to assess any system, we are auditing health and possible significant impacts on the As part of our EMS we are looking at safety systems over a three-year environment. We can minimise any ways of improving our Travel Plan. rolling programme. Taking prompt impacts by setting objectives and One project is the use of two electrical action where necessary enables us targets, therefore reducing vehicles (one at our head office and to continually improve on health and environmental impacts, costs and one at our London Group office) as safety performance throughout the ensuring the business runs more pool cars to save on the use of business. efficiently. Environmental impact primary fuels. The car located at our reduction – such as oil interceptors in head office site will be powered by the place at our head office to reduce excess electricity of the CHP.

40 Annual Accounts for the year ended 31 March 2002

41 42 Contents

Foreword to the accounts 45

Statement of Agency’s and Chief Executive’s responsibilities 48

Statement on internal control 49

The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament 50

The Report of the Comptroller and Auditor General to the Houses of Parliament 52

Operating account 55

Statement of total recognised gains and losses 55

Balance sheet 56

Cash flow statement 57

Notes to the accounts 58

Accounts direction given by the Treasury 71

Treasury Minute dated 29 March 1999 72

43 44 Foreword to the accounts

Status Framework Document published in Bryan Nanson April 1999. Director of Staff Development and Ordnance Survey is a government Corporate Services department founded in 1791, Management Board Ed Parsons operating under legislation that dates Chief Technology Officer back to 1841. It is responsible for the There are two corporate boards in (from 5 June 2001) official, definitive surveying and the Ordnance Survey senior topographical mapping of Great management structure. These are: Gwynneth Flower Britain. In 1990 Ordnance Survey Non-Executive Director was established as an Executive • The Strategy Board – responsible Lynn Mathieson Agency and with effect from 1 April for determining the long-term Non-Executive Director 1999 Ordnance Survey attained strategy of Ordnance Survey and Piers White Trading Fund status under the oversight of the successful Non-Executive Director provisions of the Government Trading discharge of the remit assigned to (from October 2001) Funds Act 1973, as amended. Ordnance Survey by Ministers. Until December 2001 the Strategy Board The Non-Executive Directors are The holder of the combined post of comprised the Chief Executive, appointed by the Secretary of State. Director General and Chief Executive Director of Business Change, Head Their remuneration and terms of is also the Accounting Officer. During of Strategy and Non-Executive appointment are agreed at the time 2001–02 the Secretary of State for Directors. From January 2002 the of their appointment, which is the Department for Transport, Local Board was extended to include all normally for two years with the Government and the Regions (DTLR) Ordnance Survey Directors and option for this to be extended for a had ministerial responsibility for Non-Executive Directors. further two years. In October 2001 Ordnance Survey. Piers White replaced Michael • The Operating Board – Pattison, who had served four years Aim and strategic responsible for all operational as a Non-Executive Director. objectives matters within Ordnance Survey at a corporate level and for The Operating Board Ordnance Survey aims to satisfy the implementation of the strategy national interest and customer need agreed by the Strategy Board and In addition to the Ordnance Survey for accurate and readily available comprising all Ordnance Survey directors on the Strategy Board as geospatial data and maps of the Directors and the Head of Strategy. detailed above, the following whole of Great Britain in the most directors served on the Ordnance effective and efficient way. This aim is At 31 March 2002 the Survey Operating Board during pursued through a set of strategic Strategy Board comprised 2001–02: objectives that cover all aspects of maintaining the National Topographic Vanessa Lawrence Stephen Gapper Database sufficiently up to date and Chief Executive Acting Director of Digital Brands of suitable quality to meet the current David Willey (to 31 October 2001) and future data, graphic and Director of Business Change Nick Land information needs of a wide range of and Deputy Chief Executive Director of Market Development customers. The strategic objectives Duncan Shiell (to 30 November 2001) include the delivery of national interest Head of Strategy Ian Logan services and activities as defined in a Steve Erskine Director of Data Collection formal agreement with government Director of Graphic Brands and Management (to 30 April 2001) and the provision of national coverage James Brayshaw Graham Little of medium- and small-scale maps. Director of Digital Brands Acting Director of Data Collection (from 1 November 2001) and Management (from 30 April 2001 Further details of the aims, objectives, Neil Ackroyd to 3 September 2001) accountability and responsibility are Director of Data Collection and contained in Ordnance Survey’s Management (from 4 September 2001)

45 Audit Committee Britain. The aim of PointX Ltd is to (ROCE) on the surplus on ordinary at 31 March 2002 lead the points of interest market by activities before interest of at least delivering the most comprehensive, 9% of net assets employed over Gwynneth Flower, Lynn Mathieson, current and consistent national data. the period 1 April 1999 to 31 Piers White and David Willey were On 20 November 2001 Ordnance March 2004. members of the Ordnance Survey Survey increased its share to 50% Audit Committee at 31 March 2002. (see Note 7). The additional financial target for 2001–02 set by the Secretary of Auditor Business objectives State for Transport, Local 2001–02 Government and the Regions is: The Auditor is Sir John Bourn, Comptroller and Auditor General. Details of the non-financial business • to raise income of £85.6 million targets for 2001–02 are contained in through sales, licensing and other Business activities the Annual Report. activities, excluding Government funding towards the NIMSA. Ordnance Survey delivers its remit of Financial objectives maintaining the National Topographic Results for the year Database (NTD) of Great Britain and The Government Trading Funds Act providing national coverage of 1973 lays upon the Minister The deficit for the year is £6 452 000, medium- and small-scale maps to responsible for each fund the which was transferred from the government, business and consumer financial objectives of: general reserve as shown in Note 13. markets. Surveying and mapping activity that ensures consistent • managing the revenue of the Details of the achievement of the national standards but does not have funded operations so that the financial target is shown in Note 20. an immediate commercial justification revenue of the fund consists Further details are contained in the is funded by an agreement with primarily of receipts in respect of Annual Report. central government (the National goods and services provided in the Interest Mapping Services course of the funded operations, Research and Agreement – NIMSA). Data graphics and is not less than sufficient, development and information services are mainly taking one year with another, to directed to the government and meet outgoings which are properly Ordnance Survey continues to business markets, while the chargeable to the revenue account; undertake a diverse programme of consumer market is concentrated on and market-led research covering both medium- and small-scale maps. • achieving such further financial product development and process Increasingly some medium-scale objectives as the Treasury may improvement, focused on addressing data products serve both the from time to time, by Minute laid the current and future needs of the business and consumer markets. before the House of Commons, business. A further significant Ordnance Survey encourages the indicate as having been determined increase in research investment over growth of a licensed partner by the responsible Minister (with the last year has enabled the community designed to add value to Treasury concurrence) to be implementation of a forward-looking, data taken from the NTD. desirable of achievement. blue-sky research and innovation strategy addressing a fundamental On 30 March 2001 Ordnance Survey The longer-term financial objective of research agenda in information acquired a 40% share in PointX Ltd, Ordnance Survey is: science, centred around future users a joint venture company set up to and uses of location-based develop and market a points of • to achieve an average annual information. It addresses novel interest database covering Great return on capital employed means of data collection, storage,

46 maintenance and delivery of have become temporarily or There has been a structured training location-based information and permanently disabled during the programme across the business to services to new user communities period when they were employed by improve face-to-face communication, using new channels. Greater Ordnance Survey, and for the briefing and leadership skills, emphasis is being placed on training, career development and together with a business-wide innovation and the exploitation of promotion of people with disabilities. endeavour to ensure that all intellectual capital developed through Ordnance Survey is registered with employees are part of the this research and innovation strategy. the Employment Service as an communication experience and that employer who is Positive About all contributions are appreciated and Ordnance Survey’s Virtual Research Disabled People. considered. Unit continues to develop partnerships with the academic Employee involvement Ordnance Survey continues to be community, other national mapping recognised as an Investor in People agencies and research departments Internal communications are (IIP), the national quality standard for in commercial organisations using continuously monitored for the effective investment in the training expertise across the world in effectiveness of existing business and development of staff and will be delivering its research agenda. communication channels, and the applying in 2002 for its fourth Charter effectiveness of the communications Mark. Ordnance Survey’s quality Research in Ordnance Survey is of others in Ordnance Survey, systems have been developed to supported by a proactive technology through local and business structured EFQM principles. tracking programme that ensures feedback channels on behalf of all threats and opportunities to the employees. Guidance, advice, The Ordnance Survey Departmental business are identified and helps to information and internal consultancy Whitley Council provides for regular establish research priorities. are available wherever and whenever consultations with employees’ it is required and standards are set representatives. Creditor payment policy for business communication activity to maximise the effect and focus of Events since the end of Ordnance Survey adheres to the communication across the business. the financial year Better Payment Practice Code. In 2001–02, 97.8% (99.1% in 2000–01) Primary communication channels are There have been no significant of all approved invoices were paid by under continuous review and events since the end of the financial Ordnance Survey within the development, concentrating year that would affect the results for contractual conditions, or within 30 specifically this year on maximising the year or the balance sheet at year days of receipt of a valid invoice. the potential e-delivery of business end. information in many formats. These Employment of people include continuing development of Accounts with disabilities the Intranet, promotion and development of video conferencing The Directors present the accounts As part of the Ordnance Survey and plasma screen technology, and for the year ended 31 March 2002. Diversity Plan, directors support increasing use of the internal policies for giving full and fair newscaster software. In addition to consideration to applications for improving the currency of employment made by people with information, these developments disabilities, having regard to their result in cost savings and particular aptitudes and abilities. environmental benefits, including a Vanessa V Lawrence There is also support for continuing reduction in the need for travel and Director General and Chief Executive the employment of employees who the production of paper copies. 28 June 2002

47 Statement of Agency’s and Chief Executive’s responsibilities

Under Section 4(6) of the • make judgements and estimates on Government Trading Funds Act 1973 a reasonable basis; the Treasury has directed Ordnance Survey to prepare a statement of • state whether applicable accounting accounts for each financial year in standards have been followed, and the form and on the basis set out in disclose and explain any material the Accounts Direction that is departures in the financial reproduced at the end of these statements; and accounts. The accounts are prepared on an accruals basis and • prepare the financial statements on must give a true and fair view of the the going concern basis unless it is Agency’s state of affairs at the year inappropriate to presume that the end and of its income and Agency will continue in operation. expenditure, total recognised gains and losses, and cash flows for the The Treasury has appointed the Chief financial year. Executive of Ordnance Survey as the Accounting Officer for the Agency. Her In preparing the accounts the Agency relevant responsibilities as Accounting is required to: Officer, including responsibility for the propriety and regularity of the public • observe the Accounts Direction finances and for the keeping of proper issued by the Treasury, including records, are set out in the Framework the relevant accounting and Document, and in the Accounting disclosure requirements, and apply Officers’ Memorandum issued by the suitable accounting policies on a Treasury and published in Government consistent basis; Accounting (The Stationery Office).

48 Statement on internal control

As Accounting Officer, I have As Accounting Officer, I also have of responsibility, including progress responsibility for maintaining a sound responsibility for reviewing the reports on key projects. system of internal control that effectiveness of the system of internal • A regular programme of facilitated supports the achievement of control. Ordnance Survey has workshops to identify and keep up departmental policies, aims and established the following processes: to date the record of risks facing objectives set by Ordnance Survey’s the organisation. Ministers, while safeguarding the • A Strategy Board that meets • A programme of risk awareness public funds and departmental assets monthly to consider the plans and training. for which I am personally responsible, strategic direction of Ordnance • Established key performance in accordance with the Survey (the Board includes three indicators. responsibilities assigned to me in Non-Executive Directors) and an • Maintenance of an Government Accounting. Operating Board that includes all organisation-wide risk register the Directors of Ordnance Survey system with registers being The system of internal control is and which meets weekly. Risk maintained at Board and designed to manage rather than management has been an item on departmental management team eliminate the risk of failure to achieve all departmental management team level. policies, aims and objectives; it can agendas from April 2001. therefore only provide reasonable • Periodic reports from the Chairman My review of the effectiveness of the and not absolute assurance of of the Audit Committee, to the system of internal control is informed effectiveness. Boards, concerning internal control. by the work of the internal auditors • Regular reports by Internal Audit, and the executive managers within The system of internal control is to standards defined in the Ordnance Survey who have based on an ongoing process Government Internal Audit Manual, responsibility for the development designed to identify the principal risks which include the Head of Internal and maintenance of the internal to the achievement of Ordnance Audit’s independent opinion on the control framework, and comments Survey policies, aims and objectives, adequacy and effectiveness of made by the external auditors in their to evaluate the nature and extent of Ordnance Survey’s system of management letter and other reports. those risks and to manage them internal control together with efficiently, effectively and recommendations for improvement. economically. This process has been • A strategic risk and control in place for the year ended 31 March assessment was carried out in 2002 and up to the date of the 2001–02. approval of the annual report and • Regular reports from managers on Vanessa V Lawrence accounts, and accords with Treasury the steps they are taking to manage Director General and Chief Executive guidance. business critical risks in their areas 28 June 2002

49 The Certificate and Report of the Comptroller and Auditor General to the Houses of Parliament

I certify that I have audited the the information and explanations I necessary in order to provide me with financial statements on pages 55 to require for my audit. sufficient evidence to give reasonable 70 under the Government Trading assurance that the financial Funds Act 1973. These financial I read the other information contained statements are free from material statements have been prepared in the Annual Report, and consider misstatement, whether caused by under the historical cost convention whether it is consistent with the error or by fraud or other irregularity as modified by the revaluation of audited financial statements. I and that, in all material respects, the certain fixed assets and the consider the implications for my expenditure and income have been accounting policies set out on pages certificate if I become aware of any applied to the purposes intended by 58 to 60. apparent misstatements or material Parliament and the financial inconsistencies with the financial transactions conform to the Respective responsibilities of statements. authorities which govern them. Ordnance Survey, the Chief Executive and Auditor I review whether the statement on However, the evidence available to page 49 reflects the Agency’s me was limited because £2.2 million As described on page 48, Ordnance compliance with Treasury’s guidance of the £23.832 million tangible fixed Survey and the Chief Executive are Corporate Governance: Statement on assets appropriated to the Trading responsible for the preparation of the Internal Control. I report if it does not Fund on 1 April 1999 comprises the financial statements in accordance meet the requirements specified by stated value of the database with the Government Trading Funds the Treasury, or if the statement is management system for the National Act 1973 and Treasury directions misleading or inconsistent with other Topographic Database for which no made thereunder and for ensuring information I am aware of from my adequate accounting records exist. the regularity of financial audit of the financial statements. The database management system transactions. Ordnance Survey and was developed by Ordnance Survey the Chief Executive are also Basis of audit opinion in 1994. At that time Ordnance responsible for the preparation of the Survey’s accounting policy was to Foreword and other contents of the I conducted my audit in accordance charge the costs of software Annual Report. My responsibilities, with United Kingdom Auditing development as an expense in the as independent auditor, are Standards issued by the Auditing Operating Statement. established by statute and guided by Practices Board, except that the the Auditing Practices Board and the scope of my work was limited as On becoming a Trading Fund on 1 auditing profession’s ethical explained below. April 1999, Ordnance Survey changed guidance. its accounting policy to recognise the An audit includes examination, on a database management system as a I report my opinion as to whether the test basis, of evidence relevant to the tangible fixed asset in accordance financial statements give a true and amounts, disclosures and regularity with current accounting standards and fair view and are properly prepared in of financial transactions included in Treasury guidance. The database accordance with the Government the financial statements. It also management system was brought to Trading Funds Act 1973 and Treasury includes an assessment of the account within fixed assets at its directions made thereunder, and significant estimates and judgements depreciated net book value of £2.2 whether in all material respects the made by Ordnance Survey and the million, based on an original estimated expenditure and income have been Chief Executive in the preparation of cost of £4.8 million. No accounting applied to the purposes intended by the financial statements, and of records have been retained to support Parliament and the financial whether the accounting policies are the original estimated cost of this transactions conform to the appropriate to the Agency’s database management system. There authorities which govern them. I also circumstances, consistently applied were no other audit procedures that I report if, in my opinion, the Foreword and adequately disclosed. could adopt to confirm that this asset is not consistent with the financial was properly valued. statements, if the Accounting Officer I planned and performed my audit so has not kept proper accounting as to obtain all the information and In forming my opinion I also records, or if I have not received all explanations which I considered evaluated the overall adequacy of the

50 presentation of information in the • in all other respects, and except financial statements. for any adjustments that might have been necessary had I been Adverse Opinion able to obtain sufficient evidence concerning the database Ordnance Survey’s turnover of £102.6 management system, the financial million derives principally from the statements have been properly exploitation of data contained on the prepared in accordance with the National Topographic Database, the Government Trading Funds Act creation of which has been funded 1973 and directions made from public monies over many years. thereunder by the Treasury; and As disclosed in Note 1.7 to the • in all material respects the accounts, the Agency has not expenditure and income have capitalised the costs of setting up and been applied to the purposes maintaining the National Topographic intended by Parliament and the Database in its Balance Sheet. In the financial transactions conform to Agency’s view, the database is an the authorities which govern them. intangible fixed asset that does not meet the conditions for capitalisation In respect alone of the limitation on set by Financial Reporting Standard my work relating to the database 10. In my opinion, the National management system included within Topographic Database is a tangible fixed assets: fixed asset that should be capitalised in accordance with Financial • I have not obtained all the Reporting Standard 15. Having taken information and explanations that I expert advice about the valuation of considered necessary for the the database, in my view the value to purpose of my audit; and the business is not less than £50 • proper accounting records have million. Had the National Topographic not been maintained. Database been capitalised at that value, the effect would have been to increase tangible fixed assets Details of these matters are set out in included in the Balance Sheet at 31 my report on the 2001–02 Accounts. March 2002 from £39 million to £89 million.

In my opinion:

• in view of the effect of the decision not to capitalise the National Topographic Database as a tangible fixed asset in John Bourn accordance with Financial Comptroller and Auditor General Reporting Standard 15, the 15 July 2002 financial statements do not give a true and fair view of the state of National Audit Office affairs of Ordnance Survey at 157–197 Buckingham Palace Road 31 March 2002 or of its deficit, Victoria total recognised gains and losses LONDON and cash flows for the year then SW1W 9SP ended;

51 The Report of the Comptroller and Auditor General to the Houses of Parliament

Accounting for the The National Topographic Tangible Fixed Assets, Ordnance National Topographic Database Survey capitalises the database Database management system as a 4. Over many decades Ordnance tangible fixed asset in its Background Survey has created, and accounts. No value is attached in continues to maintain, the the Balance Sheet to the core 1. Ordnance Survey (the Agency) National Topographic Database database nor to the costs of is a government department as a definitive computerised map re-engineering and updating founded in 1791, and is of Great Britain. The Agency’s existing data. Instead, ongoing responsible for the official, main remit is the maintenance of costs of maintaining the database definitive surveying and the National Topographic have been charged to the topographical mapping of Great Database and the provision of Operating Statement as incurred. Britain. Having become an products and services from it and 7. The accounting treatment applied Executive Agency in 1990, hence the database is of central to the database reflects the Ordnance Survey acquired importance to Ordnance Survey’s Agency’s view that the database Trading Fund status in April business. In 2001–02 Ordnance is a collection of information akin 1999 under the provisions of the Survey’s turnover from the to intellectual property and, as 1973 Government Trading exploitation of data held on the such, is an intangible fixed asset. Funds Act (as amended). database was £102.6 million. As Financial Reporting Standard 10 2. I have qualified my opinion on well as generating revenues Goodwill and Intangible Assets Ordnance Survey’s accounts in directly for Ordnance Survey, the requires that internally generated each of its first three years as a Agency has noted in its Annual fixed assets are capitalised only Trading Fund due to my Report that independent where there is a readily disagreement with the Agency’s consultants estimated some three ascertainable market value decision not to capitalise the years ago that around £100-billion evidenced by an active market in National Topographic Database. worth of business and public similar assets. As the National The detailed reasons for my services in Great Britain rely each Topographic Database is unique disagreement are set out in my year on Ordnance Survey data. and has never changed hands, report on the 1999–2000 5. Over the past three years, some the Agency considers that no accounts (HC 26, 2000–01). £17 million has been invested in value could or should be attached 3. The purpose of this report is to re-engineering the 400 million to it in the financial statements. inform Parliament of a number features recorded on the National The Agency has noted that there of subsequent developments Topographic Database into a are no examples in the private which I consider to be relevant consistent polygonous format sector of internally generated to the debate over the bringing significant benefits in the databases being capitalised appropriate accounting way that information is integrated, except where they have been sold treatment for the National manipulated, analysed and as part of a commercial Topographic Database. These presented. transaction. developments concern changes 8. The Agency also considers that in accounting standards, Disagreement over the the revenue stream generated by enhanced disclosure in accounting treatment the National Topographic Ordnance Survey’s annual applied to the National Database is dependent upon the report and accounts of the Topographic Database currency of the information held importance of the National and that the level of currency Topographic Database and the 6. The National Topographic required by its customers can only recommendation from Stage 1 Database comprises two key be sustained through a of Ordnance Survey’s elements: software (the database programme of continual revision. Quinquennial Review that it management system) and The Agency does not therefore becomes a public limited topographical data (the regard its data as having a company with shares wholly database). In accordance with sufficiently long depreciable life to owned by the government. Financial Reporting Standard 15 warrant capitalisation.

52 9. My decision to qualify Ordnance Developments in accounting considered to be intangible assets Survey’s accounts in 1999–2000 standards that do not meet the capitalisation and subsequent years reflects my criteria set out in Financial opinion that the accounting 12. Since I first qualified my opinion Reporting Standards 10. However, treatment applied to the on the Ordnance Survey accounts the UITF, having accepted the database should reflect the past in 1999–00, the Accounting need to recognise the value of investment of public funds in the Standards Board’s Urgent Issues web site development costs in National Topographic Database. Taskforce (UITF) has issued entities’ balance sheets, also This past public investment Abstract 29 Website development concluded that such costs should, in my opinion, have been costs. The UITF’s Abstracts have represent tangible fixed assets in reflected in the public dividend the same force as accounting Abstract 29. capital and net assets vested in standards. The issues addressed 15. Ordnance Survey continues to the Trading Fund at its inception in Abstract 29 are relevant to the believe, however, that current on 1 April 1999. After taking consideration of accounting for accounting standards do not professional advice on the the Ordnance Survey database. support the capitalisation of the valuation of the database, my Abstract 29 covers web site database in its accounts. The opinion was that the value of the content costs, being expenditure Annual Report accompanying database to the business was not incurred on preparing, Ordnance Survey’s 2001–02 less than £50 million in 2000 and accumulating and posting the web accounts nevertheless urges that there was accordingly a site content. Abstract 29 requires readers of the financial material understatement of web site content costs to be statements to take account of the capital employed in Ordnance capitalised as tangible fixed database when seeking to Survey’s accounts. assets to the extent that the understand the true value of the 10. My opinion remains that the expenditure is separately business and the asset base used database is more appropriately identifiable and leads to the to generate current and future accounted for as a tangible fixed creation of an enduring asset revenues and Note 1.7 to the asset and should be capitalised delivering benefits at least as accounts draws the reader’s in accordance with Treasury great as the amount capitalised. attention to the report of the Guidance and Financial 13. There is a clear analogy between Principal Finance Officer. I Reporting Standard 15. Unlike expenditure on web site content welcome this new statement in intangible fixed assets such as costs incurred to secure the future the accounts. trademarks, brands or patents, revenue generating capacity of an the database is an accurate entity’s web site and the costs of Quinquennial Review representation of a physical collecting and engineering reality that is not affected by Ordnance Survey data to ensure 16. Ordnance Survey is currently opinion, taste, judgement, the currency and future revenue undergoing a Quinquennial reputation or belief. generating capacity of the Review, a requirement for all 11. Furthermore, I consider that the National Topographic Database. agencies and Non-Departmental database is analogous to 14. There is a growing recognition Public Bodies. The Review is split internally generated software, across business and accounting into two stages. Stage 1 of the which is also data held in fields that financial statements Review involved canvassing electronic form. Treasury increasingly do not necessarily stakeholders, considering the Guidance and Financial represent the true value of contribution made by the agency Reporting Standard 10 require businesses. The economy is to wider governmental objectives the capitalisation of internally driven increasingly by assets such and assessing the effectiveness generated software as a tangible as information, intellectual of the organisational structure in fixed asset, recognising that it property and human capital rather delivering its services. A number represents expenditure that is of than by assets such as plant and of options for the future status of continuing use in a business and machinery. Such assets are often Ordnance Survey including which supports the generation of excluded from financial abolition, continued Trading Fund future economic benefits. statements as they are status, merger or rationalisation

53 and privatisation were considered. (£102.6 million in 2001–02) 17. The review team recommended derives principally from the that Ordnance Survey should exploitation of data held on the make the transition from Trading database. In my opinion the Fund to a wholly government failure to capitalise the database owned public limited company results in a material (plc). This option was seen as understatement of capital giving Ordnance Survey the employed in the Balance Sheet. additional commercial freedoms 19. The Agency considers that the essential to driving out further accounting treatment it has performance improvements and applied to the National achieving greater agility in the Topographic Database conforms market place. In December 2001 to both current accounting Ordnance Survey’s Minister standards and standard practice announced that she was minded amongst businesses that to accept the recommendation generate revenues from and Stage 2 of the Review is databases and information currently looking at the costs, collections. Consequently it has benefits and practicalities of such informed me that, until and unless a move. The Stage 2 review team the current accounting standards is expected to report its findings and recommendations change, it later in 2002. In my view , it will does not intend to revise its be important that any change in accounting treatment. I the status of Ordnance Survey nevertheless welcome the safeguards the past public additional disclosures made by investment by the taxpayer in the the Agency in the financial National Topographic Database statements to draw readers’ by ensuring that its value to the attention to this important asset. business is properly reflected in the financial statements.

Conclusion

18. I have qualified my opinion on Ordnance Survey’s 2001–02 accounts because of my John Bourn continuing disagreement with Comptroller and Auditor General Ordnance Survey’s decision not 15 July 2002 to capitalise the National Topographic Database. The National Audit Office National Topographic Database 157–197 Buckingham Palace Road has been funded from public Victoria monies over many years and LONDON Ordnance Survey’s turnover SW1W 9SP

54 Operating account for the year ended 31 March 2002

2001–02 2000–01 Note £’000 £’000 £’000 Tur nover Turnover from operating activities 2.1 102 631 99 558 Exceptional item 2.2 – 19 250 Government grant income 2.3 6 000 6 000 Invest to save budget income 2.4 108 171 Income from investment property 2.5 286 72 109 025 125 051 Operating costs Staff costs 3 56 370 55 375 Depreciation of fixed assets 6 6 442 4 610 Other operating charges 4 53 699 37 724 Total operating costs 116 511 97 709 Operating surplus/(deficit) (7 486) 27 342 Share of operating deficit – PointX (72) – Total operating surplus/(deficit) (7 558) 27 342 Profit/(Loss) on disposal of fixed assets (4) 14 Surplus/(deficit) on ordinary activities before interest (7 562) 27 356 Interest receivable 5 1 757 1 975 Interest payable 5 (647) (751) Net interest 1 110 1 224 Surplus/(Deficit) for the year including the exceptional item 2.2 (6 452) 28 580 Surplus/(Deficit) for the year before the exceptional item 2.2 (6 452) 9 330

All Ordnance Survey activities are continuing. There have been no material acquisitions or disposals in the year.

Statement of total recognised gains and losses for the year ended 31 March 2002

2001–02 2000–01 Note £’000 £’000

Surplus/(deficit) for the financial year (6 452) 28 580 Unrealised gain on revaluation of tangible fixed assets 13.2 590 1 374 Unrealised gain on investment revaluation reserve 13.2 1 913 2 357 Total gains and (losses) relating to the financial year (3 949) 32 311 Prior year adjustments 15 – 931 Total gains and (losses) recognised (3 949) 33 242

The notes on pages 58 to 70 form part of these accounts.

55 Balance sheet at 31 March 2002

31 March 2002 31 March 2001 Note £’000 £’000 £’000 Fixed assets Tangible fixed assets 6.1 38 978 31 465 Fixed asset investments Property 6.2 6 430 4 517 Other Investments – PointX 7 68 – 45 476 35 982 Current assets Stocks and work-in-progress (WIP) 8 1 677 3 416 Debtors 9.1 12 754 22 315 Prepayments 9.2 1 979 1 420 Cash at bank and in hand 35 285 37 765 51 695 64 916 Current liabilities Creditors: amounts falling due within one year 10 (15 238) (15 298) Bank overdraft – (487) (15 238) (15 785) Net current assets 36 457 49 131 Total assets less current liabilities 81 933 85 113

Financed by: Provision for liabilities and charges 11 8 898 7 292

Capital and reserves Public Dividend Capital 14 000 14 000 Loans repayable after one year 12 11 018 12 353 General reserve 13.1 35 320 41 483 Revaluation reserve – tangible fixed assets 13.2 7 113 6 314 Investment revaluation reserve 13.2 5 584 3 671 73 035 77 821 Total 81 933 85 113

The Accounts were approved on 28 June 2002.

Vanessa V Lawrence Chief Executive and Agency Accounting Officer

The notes on pages 58 to 70 form part of these accounts.

56 Cash Flow Statement for the year ended 31 March 2002

Note 2001–02 2000–01 £’000 £’000 Reconciliation of operating surplus for the year to net cash flow from operating activities Operating surplus/(deficit) (7 562) 27 356 Depreciation charges 6 6 442 4 610 (Profit)/Loss on disposal of fixed assets 4 (14) Decrease/(increase) in stocks/WIP 8 1 739 (815) (Increase)/decrease in debtors/prepayments 9 9 685 (9 080) Decrease in prefunded pension commitments 9 296 – Increase in creditors 10 115 999 General reserve/creditors’ adjustment 10 498 597 Increase in long-term liabilities 11 615 1 520 Net cash inflow from operating activities 11 832 25 173

Cash flow statement Net cash inflow from operating activities 11 832 25 173 Financing costs – net receipts/payments 14.1 1 121 1 144 Net capital expenditure 14.2 (13 329) (9 149) Net other investment – PointX 14.3 (68) – Cash inflow/(outflow) before financing (444) 17 168 Financing 12 (1 549) (1 549)

Increase/(decrease) in cash (1 993) 15 619

Cash movement Increase/(decrease) in cash in the year (1 993) 16 106 (Increase) in bank overdraft – (487) Cash at 1 April 37 278 21 659

Cash at 31 March 35 285 37 278

All Ordnance Survey movements in cash relate to cash flows from operating activities and there is no other net debt.

The notes on pages 58 to 70 form part of these accounts.

57 Notes to the accounts

Note 1. property. The Existing Use Value Movements in fixed assets are Accounting policies comprised £8 905 000 for land and disclosed in Note 6. £8 405 000 for buildings. The following accounting policies 1.5 Depreciation have been applied consistently in The basis of valuation for Ordnance dealing with items that are Survey occupied buildings is Existing Depreciation is calculated so as to considered material in relation to Use Value assuming vacant write off the valuation of freehold Ordnance Survey accounts. possession. The values are included buildings and other fixed assets by in these accounts on the Ordnance equal instalments over their 1.1 Accounting conventions Survey balance sheet and details are estimated useful lives determined by contained in Note 6.1. professional assessment. Lives are These accounts have been prepared normally as follows: under the historical cost convention, There were no additions to land in modified to include the revaluation of the year. Freehold buildings 45 years fixed assets, to meet the accounting Machinery, equipment and disclosure requirements of the Ordnance Survey, (under Treasury and fixtures 3 to 10 years Companies Act 1985 and accounting guidance) is deemed to be the owner Computers standards issued or adopted by the of one common user estate property. and IT equipment 2 to 5 years Accounting Standards Board so far This is included in Land and IT Software 3 to 10 years as those requirements are Buildings on the Balance Sheet and Vehicles 4 years appropriate. was revalued on 31 March 2002 by Chesterton plc. The basis of the Freehold land is not depreciated. They are in accordance with the valuation is Existing Use Value Treasury Direction that is assuming vacant possession and the The depreciation charge for the year reproduced at the end of the amount of the valuation was £95 000 on buildings is calculated at the year accounts. (Land £60 000 Buildings £35 000). end on the valuation by Chesterton plc (see Note 1.2). For all other fixed 1.2 Freehold land and buildings 1.3 Investment properties assets, the depreciation charge for the year is calculated on the average Title to the freehold headquarters site Investment properties are included in asset values for the year (average of in Southampton is held by the the balance sheet at their Open values recalculated annually using Department for Transport, Local Market Value. No depreciation is indices issued by the Office for Government and the Regions in the charged on these assets. Details are National Statistics). name of the Secretary of State. The included in Note 6.2 and rental control and management of this income is shown in Note 2.5. 1.6 Stocks and freehold land and buildings were work-in-progress vested in Ordnance Survey from 1 1.4 Other fixed assets April 1974 as if legal transfer had Stocks and work-in-progress are been effected. • The minimum level for capitalisation valued as follows: as a fixed asset is £5 000, with the • Maps – at the lower of cost and net The land and buildings were revalued exception of Information realisable value. Costs of large- on 31 March 2002 by Chesterton plc Technology (IT) infrastructure and scale maps (at scale of in accordance with the Appraisal and support systems hardware, which 1:10 000 or greater) are charged to Valuation Manual produced by the is normally £1 000. the operating account as incurred. Royal Institution of Chartered • All IT workstations (office • Work-in-progress – at the lower of Surveyors (September 1995 as computers and laptops) are cost and net realisable value. Cost amended). The amount of this grouped as one asset. represents materials and labour valuation was £23 740 000 consisting • The values of other fixed assets and other directly attributable of £17 310 000 Existing Use Value have been restated using overheads. and £6 430 000 for the Open Market appropriate indices published by • Amounts recoverable on contracts Value in respect of investment the Office for National Statistics. – at the value of work carried out

58 after provision for contingencies Added Tax (VAT). increased in subsequent years to and anticipated future losses. meet the known liability for these Copyright licences issued can cover leavers (see Notes 3.2 and 11). 1.7 National Topographic periods beyond the end of the Funds are released from the Database financial year. Copyright turnover is provision annually to fund pensions recognised in the year in which it is and related benefits payments to the The background to the accounting earned, being the year in which retired employees until normal treatment of the data that constitutes Ordnance Survey material is printed retirement age. Under the different the National Topographic Database by the licence holder. funding arrangements that applied (NTD) is set out in the report of the between October 1994 and 31 March Principal Finance Officer. This note Unpaid copyright invoices for 1997, 80% of the costs were met should be read in conjunction with that licence fees that may relate to centrally from the Civil Report. It is important to distinguish periods after 31 March 2002 are Superannuation Vote. In order to the data itself from the software and included in trade debtors that reflect the 100% cost of all hardware (the database management represent all invoices unpaid at 31 employees leaving under the revised system), which enables the data to be March 2002. arrangements during this period, the securely held and updated. 80% funded centrally has been The proportion of the value of transferred from the provision to the The NTD itself is accounted for as an invoices excluding VAT raised in general reserve in these accounts intangible fixed asset under FRS10. 2001–02 that relate to the period (see Note 10). With changes to the data happening after 31 March 2002, irrespective of in real time, the costs of surveying, the date of payment, is included in Until 1999, when Ordnance Survey otherwise acquiring, rectifying and creditors as copyright and other was an on-vote Executive Agency, it loading the data are charged to the revenue in advance. made payments to the Civil Operating Account as incurred. Superannuation Vote to prefund Consequently, no value for the NTD 1.9 Pension and early some of the liabilities relating to appears on the balance sheet, retirement costs compensation for early retirement. notwithstanding its central Some unused balances for future importance to Ordnance Survey Past and present employees are years remain at 31 March 2002 and activities and revenue generation. covered by the provisions of the in accordance with 2001–02 Trading Principal Civil Service Pension Fund Guidance, the provisions and The database management system is Scheme. Contributions in respect of prepayments are shown separately treated as a fixed asset in the normal accruing superannuation liabilities, on the Balance Sheet (see also Note way. The system comprises, calculated at rates determined from 11). In previous years a net liability principally, internally generated time to time by the Treasury, are has been shown. Details of the costs software that has been developed charged to the Operating Account in of leavers in 2001–02 are provided and enhanced over several years and the year in which they fall due. for in the Operating Account (see written off over its expected working Details are contained in Note 3.5. Notes 2.3 and 3.2). life. The replacement database management system in course of Some staff may be retired early 1.10 Research and development construction at 31 March 2001 came under restructuring arrangements at into use in 2001–02 and was the discretion of Ordnance Survey. Expenditure on research and capitalised in the year (see Note 6). The Department is required to pay development is treated as an the pensions of employees who retire operating charge in the year in which 1.8 Turnover early (excluding actuarily reduced it is incurred. retirement and medical retirement) Turnover comprises invoiced sales until they reach normal pensionable 1.11 Operating leases of mapping data, information, age. 100% of the costs of funding customer-tailored services and early leavers prior to 31 March 2001 Rentals payable under operating copyright revenue (net of trade have been provided for in earlier leases are charged to the Operating discount) and is shown net of Value years with the provision being Account as incurred.

59 1.12 Taxation £20 000 000 over two years and an received investment support agreement to become a licensee, so amounting to £300 000 in Ordnance Survey is not liable to allowing the use of Ordnance 1999–2000. By the end of 2000–01, Corporation Tax on its profits. Survey material in future publishing £234 080 had been released to invest and information activities. The to save budget income as costs were 1.13 Foreign currency payment covers backdated royalty incurred. The balance of £65 920 is transactions payments, interest on these being used as part of the integrated amounts, Ordnance Survey’s costs coastal map zone project, a Transactions denominated in foreign and an advance of £750 000 on the development project between currencies are translated into sterling royalties payable for twelve months Ordnance Survey, the UK at the rates of exchange ruling at the from 2 March 2001. Hydrographic Office, the British dates of the transactions. Exchange Geological Survey and Ordnance rate differences are charged to the £19 250 000 was included as an Survey Northern Ireland. In 2001–02 Operating Account as incurred (see exceptional item in the 2000–01 £108 000 was released to invest to Note 4). Monetary assets and Operating Account. The £750 000 save budget income. liabilities denominated in foreign related to trading turnover and was currencies at the balance sheet date primarily included as copyright in 2.5 Income from investment are translated at the rates ruling at advance in the 2000–01 accounts property that date. (see Note 1.8 above). £10 000 000 was received in March 2001 and the Details of this property are included 2. Turnover remaining £10 000 000 in March in Note 1.3. Rental received in 2002. 2001–02 totalled £286 000 (£72 000 2.1 Operating turnover in 2000–01). The surplus for the year in the Ordnance Survey operating turnover Operating Account for 2000–01 is is principally generated by the sales stated both before and after inclusion of mapping data, information, of this exceptional item. For details of customer-tailored services and its treatment in respect of Ordnance copyright revenue. Survey’s financial targets see note 20.

The total operating turnover of 2.3 Government grant income £102 631 000 for 2001–02 (£99 558 000 in 2000–01) includes The Trading Fund plan for Ordnance £15 987 245 (£13 454 136 in Survey agreed between the 2000–01) received from the Department for Transport, Local Department for Transport, Local Government and the Regions (DTLR) Government and the Regions in and the Treasury included a major respect of the provision of national initiative to contain costs in order to interest mapping through a services allow Ordnance Survey to sustain agreement (NIMSA). adequate profitability into the future. In 2001–02 DTLR provided a grant of 2.2 Exceptional item £6 000 000, which was towards the costs of funding early retirements In March 2001 Ordnance Survey arising from restructuring. The costs and Centrica® reached agreement to are included in the Operating Account. resolve a long-running copyright action against the Automobile 2.4 Invest to save budget Association (now owned by income Centrica) for the use of Ordnance Survey mapping. The out-of-court Development projects run in settlement was for payment of collaboration with other organisations

60 2.6 The geographical turnover of non-United Kingdom business is as follows:

2001–02 2000–01 £’000 £’000 Countries within the European Union 386 592 United States of America 285 305 Eastern Europe 3 432 Asia 411 Rest of the World 48 226

3 Staff numbers and costs

3.1 Total staff numbers

The average monthly number of whole-time equivalent persons employed by Ordnance Survey (including the Board of Management) during the year was as follows: 2001–02 2000–01 Operations 1 212 1 263 Sales and Marketing 304 276 Corporate Services 332 325 1 848 1 864

3.2 Total staff costs

The aggregate payroll costs were as follows: 2001–02 2000–01 £’000 £’000 Wages and salaries 42 302 41 074 Social Security costs 3 085 2 965 Superannuation 5 555 5 329 Early retirement costs in year 2 145 1 715 Additional provision for long-term early retirement commitments (Notes 1.9 and 11) 3 283 4 292 56 370 55 375

61 3.3 Directors’ emoluments

The most senior members and key decision makers of Ordnance Survey are the members of the Strategy and Operating Boards, details of whom are contained in the Foreword to the Accounts. The salary and pension commitments of the most senior members of Ordnance Survey were as follows:

Age Salary Real Total Salary (at 31 March 2001–02 increase in accrued 2000–01 2002) including pension pension including performance at 60 at 60 at performance pay 31 March 2002 pay

£’000 £’000 £’000 £’000 Vanessa Lawrence Chief Executive 39 125–130 0–2.5 0–5 65–70 See Note c below David Willey Director and Deputy Chief Executive 43 75–80 2.5–5 15–20 65–70 Neil Ackroyd Director (from 4 September 2001) 40 45–50 0–2.5 0–5 – James Brayshaw Director (from 1 November 2001) 41 35–40 0–2.5 0–5 – Steve Erskine Director 44 60–65 2.5–5 20–25 50–55 Stephen Gapper Acting Director (to 31 October 2001) See Note d below – Nick Land Director (to 30 November 2001) 40 100–105 0–25 5–10 45–50 See Note e below Graham Little Acting Director (1 May to 3 September 2001) 53 40–45 0–2.5 10–15 35–40 Ian Logan Director (to 30 April 2001) 59 5–10 2.5–5.0 30–35 55–60 Bryan Nanson Director (Note g below) 55 65–70 2.5–5 30–35 55–60 Ed Parsons Chief Technology Officer (from 5 June 2001) 36 60–65 0–2.5 0–5 – Duncan Shiell Head of Strategy 53 60–65 0–2.5 20–25 50–55

Notes: a Salary includes gross salary, performance pay and all allowances that are subject to UK taxation. b With the exception of Mr Stephen Gapper, the Chief Executive and Ordnance Survey Directors in the table above are members of the Principal Civil Service Pension Scheme. This is a statutory scheme which provides benefits on a final salary basis at a normal retirement age of 60. Benefits accrue at the rate of 1/80th of pensionable salary for each year of service. In addition, a lump sum equivalent to 3 years’ pension is payable on retirement. Members pay contributions of 1.5% of pensionable earnings. Pensions increase in line with the retail price index. On death, pensions are payable to the surviving spouse at a rate of half the member’s pension. On death in service, the scheme pays a lump sum benefit of twice pensionable pay and also provides a service enhancement on computing the spouse’s pension. The enhancement depends on length of service and cannot exceed 10 years. Medical retirement is possible in the event of serious ill-health. In this case pensions are brought into payment immediately without actuarial reduction and with service enhanced as for widow(er) pensions. c The Chief Executive’s remuneration for 2001–02 includes a bonus of £6 871 paid in respect of 2000–01. The bonus payable for 2001–02 has yet to be approved by Ministers. d Until 31 October 2001, Mr Stephen Gapper served as acting Director of Digital Brands. Ordnance Survey entered into a framework agreement with Greatstone UK Ltd. for the provision of general management and IT services, including the services of Mr Gapper. Mr Gapper was a director of Greatstone UK Ltd throughout this period. Mr Gapper has withheld consent to disclose the amount paid by Ordnance Survey to Greatstone UK Ltd for his services. e Nick Land left Ordnance Survey on 30 November 2001. Included in his salary for 2001–02 is an ex gratia payment of £50 000. f Ian Logan retired from Ordnance Survey on 30 April 2001. g Bryan Nanson is leaving Ordnance Survey on voluntary early retirement terms in May 2002. Provision of £249 777 in respect of the liability for costs to be paid by Ordnance Survey in 2002–03 and for future years is included in these accounts.

62 3.4 Payments to Non-Executive Directors

Ordnance Survey Non-Executive Directors are not Ordnance Survey employees and are not members of the Principal Civil Service Pension Scheme.

Fees paid to Non-Executive Directors were as follows:

2001–02 2000–01 £’000 £’000 Gwynneth Flower 5–10 5–10 Lynn Mathieson 5–10 5–10 Michael Pattison (to 31 October 2001) 0–5 5–10 Piers White (from 1 November 2001) 5–10 –

3.5 Superannuation

Present and past employees are covered by the provisions of the Principal Civil Service Pension Scheme which is non-contributory and non-funded. Liability for payment of future benefits is a charge on the Consolidated Fund. For 2001–02 contributions of £5 555 007 (£5 328 700 for 2000–01) were paid to the Paymaster at rates determined from time to time by the Government Actuary and advised by the Treasury. The rates for 2001–02 were between 12% and 20.5% depending upon the pay band of each employee (between 12% and 18.5% in 2000–01).

4 Other operating charges

Included in other operating charges are: 2001–02 2000–01 £’000 £’000 Staff travel, subsistence and hospitality 4 722 4 448 Research and development 574 442 Charges for operating leases 1 912 1 774 Auditors’ remuneration and expenses 76 78 Foreign exchange rate (gains)/losses(net) 9 (45) Hire of plant and machinery 450 28

5 Interest receivable and payable

2001–02 2000–01 £’000 £’000 Interest receivable from Balances at the account with HM Paymaster 168 172 Short-term deposits with the National Loans Fund 1 587 1 803 Interest received on trade debt 2 – Interest receivable 1 757 1 975 Interest payable On deemed loans (643) (717) Other (4) (34) Interest payable (647) (751)

Net interest 1 110 1 224

63 6 Fixed assets

6.1 Tangible fixed assets

Freehold Equipment, Vehicles Assets Total land and facilities and under buildings fixtures construction £’000 £’000 £’000 £’000 £’000 Cost or valuation At 1 April 2001 16 095 28 783 758 4 007 49 643 Capitalised in year – 4 007 – (4 007) – Additions 1 032 12 071 144 191 13 438 Disposals – (2 524) (226) – (2 750) Revaluation 278 (371) – – (93) At 31 March 2002 17 405 41 966 676 191 60 238

Depreciation At 1 April 2001 – 17 623 555 – 18 178 Charged in year 563 5 789 90 – 6 442 Disposals – (2 452) (225) – (2 677) Revaluation (563) (120) – – (683) At 31 March 2002 – 20 840 420 – 21 260

Net book value At 1 April 2001 16 095 11 160 203 4 007 31 465 At 31 March 2002 17 405 21 126 256 191 38 978

Note: Assets shown as being under construction at 31 March 2002 relate to development of a customer web site (£135 000), work on improved security (£18 000) and new speedgate turnstiles (£38 000). Assets under construction at 31 March 2001 totalled £4 007 000 (the development of the new topographic database management system, installation of a combined heat and power system and replacement fire alarm system) and were capitalised in 2001–02. The value of fixed assets determined according to the historical cost accounting rules is as follows:

Freehold Equipment, Vehicles Total land and facilities and buildings fixtures £’000 £’000 £’000 £’000 Net book value At 31 March 2001 10 233 14 695 223 25 151 At 31 March 2002 10 514 21 084 267 31 865

6.2 Fixed asset investments 2001–02 2000–01 £’000 £’000 Balance at 1 April 4 517 2 160 Revaluation in the year 1 913 2 357 Balance at 31 March 6 430 4 517

Note: The value of the fixed asset investments determined according to the historical cost accounting rules is £846 000.

64 7 Other Investments – PointX On 30 March 2001 Ordnance Survey acquired a 40% share in PointX Limited, a joint venture company set up to develop and market a points of interest database covering Great Britain. Ordnance Survey is represented on the Board by a Director and a senior manager who is seconded to the company as Managing Director. At 31 March 2001 Ordnance Survey owned 40% of the total of the shares in PointX, being 400 (100%) £1 A ordinary shares. Other investors owned all the B and C ordinary shares. All shares were ranked equally. On 20 November 2001 one of the investors went into receivership and Ordnance Survey increased its ownership to 50% of the total shares. At 31 March 2002 Ordnance Survey therefore owned 400 £1 A and 100 £1 C ordinary shares.

PointX had no turnover during the year ended 31 March 2002. Its deficit/net liability position reflects the fact that 2001–02 was a set-up year prior to the expected launch of the points of interest database in 2002–03. An interest-free loan was agreed on 30 March 2001 and £533 000 was therefore provided for in the 2000–01 accounts. As a result of increasing its share in PointX the provision was increased to £750 000 of which £139 600 was drawn down in 2001–02. Following advice from the National Audit Office the provision has been removed and only the amount drawn down in 2001–02 (£139 600) is included on the balance sheet. The undrawn amount is disclosed in Note 16 – Financial Commitments. To reflect this change debtors and creditors for 2000–01 have been restated with no overall effect on the balance sheet. No dividend shall be declared or paid whilst any of the loan to PointX remains outstanding. The investment in PointX at 31 March is as follows: 2001–02 2000–01 £’000 £’000 Share of gross assets 61 – Share of gross liabilities (133) – Loan 140 – Total 68 – 8 Stocks and work-in-progress 2001–02 2000–01 £’000 £’000 Finished goods 1 414 2 443 Work-in-progress 263 973 Total 1 677 3 416 Note: Included in work-in-progress are long-term contract balances of £164 000 (£499 000 in 2000–01). 9.1 Debtors 2001–02 2000–01 £’000 £’000 Amounts falling due within one year: Trade debtors (see also Note 2.2) 8 739 18 125 Accrued income 3 262 3 190 Staff debtors and advances 114 169 Accrued interest receivable 120 131 Value added tax 290 411 Subtotal 12 525 22 026 Amounts falling due over one year: Staff debtors and advances 229 289 Total 12 754 22 315 Notes: a Trade debts are shown after a provision of £470 000. Bad Debts totalling £44 000 were written off in 2001–02 (£111 000 in 2000–01). b No debts were owed by Directors at year end.

65 9.2 Prepayments 2001–02 2000–01 £’000 £’000 Prepayments 1 284 1 420 Prepayment of early retirement liabilities due over one year (Note 1.9 and Note 11) 695 – Total 1 979 1 420

10 Creditors: amounts falling due within one year 2001–02 2000–01 £’000 £’000 Copyright and other revenue in advance 4 761 5 100 Trade creditors 437 2 492 Accruals 6 262 3 438 Provision for loss on long-term contracts 1 4 Long-term loans repayable in one year (Note 12) 1 335 1 549 Pension costs payable within one year (Note 11) 2 442 2 715 Total 15 238 15 298

Note. £498 000 was transferred from creditors at 31 March 2001 to the general reserve in 2001–02 (see Note 1.9).

11 Provision for liabilities and charges 2001–02 2000–01 £’000 £’000 Early retirement and pension commitments Balance at 1 April 8 282 5 772 Transferred to short-term provision in the year (225) (57) To creditors falling due in one year (Note 10) (2 442) (2 715) Additional provision (Note 3.2) 3 283 4 292 Subtotal 8 898 7 292 Adjustment for prefunded liabilities (Note 1.9) – 990 8 898 8 282

The above amount is estimated as falling due as follows: £’000 2003–04 2 120 2004–05 1 829 2005–06 1 554 2006–07 1 225 2007–12 2 170 Total 8 898

66 12 Long-term loans

Government loans, repayable by instalments, and bearing interest at rates between 4.75% and 4.875% per annum are: 2001–02 2000–01 Amounts repayable: £’000 £’000 In one year 1 335 1 549 In two to five years 3 730 4 347 After five years 7 288 8 006 Total 12 353 13 902

13 Reserves

13.1 Reconciliation of movements in general reserve 2001–02 2000–01 £’000 £’000 At 1 April 41 483 14 013 Prior year adjustment (Note 15) – (1 264) Sub total 41 483 12 749 Surplus/(deficit) for the year (6 452) 28 580 Pension costs – transfers to general reserve (Note 10) 498 597 Fixed assets (Note 13.2) (209) (443) At 31 March 35 320 41 483

13.2 Revaluation reserves 2001–02 2000–01 £’000 £’000 Balance at 1 April 9 985 5 811 Arising on revaluation during the year (net) 2 503 3 731 General reserve transfer 209 443 Balance at 31 March 12 697 9 985 Net reserve movements in the year Tangible fixed assets 590 1 374 Investment assets 1 913 2 357

Notes: The revaluation reserve represents the difference between the net book values of the fixed assets on a revalued and on a historic cost basis.

The transfer from the general reserve represents the enhanced depreciation on the current accounting basis over the historic cost depreciation charged during the year.

67 14 Gross cash flows

14.1 Financing charges and income 2001–02 2000–01 £’000 £’000 Interest received 1 768 1 895 Interest paid (647) (751) Net interest 1 121 1 144

14.2 Capital expenditure

Payments to acquire tangible fixed assets 13 397 9 216 Receipts from sales of tangible fixed assets (68) (67) Net capital expenditure 13 329 9 149

14.3 Investment expenditure

Share of PointX assets (72) – Loan 140 – Net investment 68 –

15 Prior year adjustment

2000–01 In 2000–01 Ordnance Survey effected a change in accounting policy to reflect the apportionment of revenue in respect of data supplied to Superplan Agents in order to reflect the revenue over the period of the licences. These licences cover a period of twelve months from the supply of the data. As a result of this change debtors were decreased by £218 000 and creditors increased by £1 046 000. The effect of this change of accounting policy was a net increase in the surplus for 2000–01 of £76 000.

16 Financial commitments 2001–02 2000–01 £’000 £’000 No provisions have been made in these accounts in respect of: Contracted capital commitments 441 2 460 Capital authorised by Directors but not contracted 464 336 Undrawn loan commitment – PointX (Note 7) 610 533

17 Operating lease commitments

At 31 March 2002 Ordnance Survey had annual commitments under non-cancellable operating leases as set out below:

Land and Buildings Other

2001–02 2000–01 2001–02 2000–01 £’000 £’000 £’000 £’000 Within one year 443 223 264 403 Between two and five years 348 427 636 607 After five years 206 305 – –

68 18 Related party Greatstone UK Ltd throughout the Further background to the trading transactions period of the framework agreement. year is contained in the Annual No other Management Board Report. Ordnance Survey is a government members, key management staff or department operating under a other related parties has undertaken 21 Losses, special Trading Fund and is also an any material transactions with payments and gifts Executive Agency. In the course of its Ordnance Survey during the year. normal business Ordnance Survey a Customer Relationship provides mapping data and copyright 19 Contingent liabilities Management to both the private and public sectors. In 2000–01 Ordnance Survey During the year Ordnance Survey There were no contingent liabilities at commenced work on a Customer has had a significant number of 31 March 2002. Relationship Management (CRM) material transactions with other project at an estimated cost of government departments and central 20 Financial targets and £4 076 000 for the provision of government bodies. Most of these results technical and process transactions have been with the infrastructures supported by the Department for Transport, Local The financial objective for the year formation of an integrated Government and the Regions and its 2001–02 was as follows: Customer Service Centre. The Executive Agencies; with HM Land infrastructure consisted of a suite Registry; the Department of the Target Achieved of Oracle® software applications. Environment, Food and Rural Affairs; To achieve a In October 2001 Directors the Ministry of Defence and Defence revenue target decided to stop development on Agencies; and with the Scottish (excluding £’000 £’000 the Oracle CRM suite as a result Office and its Agencies. Income was NIMSA) 85 600 86 643 of a related decision to implement also received from HM Customs and a fully integrated technology Excise (see Notes 1.3 and 2.5). The longer-term financial objective of platform for all business systems Ordnance Survey is to achieve an in Ordnance Survey based on Ordnance Survey had material average annual return on capital SAP software. Development of transactions with the Inland Revenue employed (ROCE) on the surplus on the Oracle CRM application was and Benefits Agency for payment of ordinary activities before interest of suspended and Ordnance Survey rents and service charges where at least 9% of net assets employed incurred a constructive loss of Ordnance Survey occupies over the period 1 April 1999 to 31 £2 084 000. accommodation in buildings for which March 2004. the Inland Revenue or Benefits b In 2001–02 special payments Agency is the major occupier. The operating surplus from totalling £65 000 were made to 1999–2000 to 2001–02, including the three employees in respect of As explained in Note 7, Ordnance exceptional item referred to in Note compensation in lieu of notice Survey and PointX Ltd are related 2.2, represents a return on capital and loss of employment parties. employed of 19.3% over the first three years of this five-year target c Bad debt write-offs of £44 000 The framework agreement between (excluding the exceptional item it were incurred in the year. Ordnance Survey and Greatstone UK would have been 10.7%). Ltd, referred to in Note 3.3 (d) above, d Other costs falling into the involved payments for general The above information relates to the category of losses, special management and IT services totalling requirements of the Ordnance payments and gifts were below £381 096. Mr Stephen Gapper, acting Survey Framework Document and the the level, currently £100 000, at Director of Digital Brands until 31 Fees and Charges Guide and is not which they needed to be reported October 2001, was a director of for the purposes of SSAP 25. separately.

69 22 Financial Instruments Ordnance Survey’s policies for year by management of its cash managing these risks are set to deposits. Ordnance Survey may Ordnance Survey’s treasury achieve compliance with the borrow such sums as it may require operations are governed by the regulatory framework. Ordnance to meet its working capital needs and Ordnance Survey Trading Fund Order Survey does not have significant finance its capital investment 1999, under the Government’s exposure to foreign currency risk. programme. Borrowing for in-year Trading Fund Act 1973(a) as Hedging of foreign currency is not fluctuations is subject to a temporary supplemented by the Framework undertaken. borrowing limit agreed with HM Document agreed with the Treasury. Such loans are normally Department for Transport, Local Interest rate risk repayable in year. Government and the Regions and Ordnance Survey finances its approved by HM Treasury. operations through retained profits. In Short-term debtors and creditors are exceptional circumstances Ordnance excluded from the following Ordnance Survey’s financial Survey may also be funded by disclosures. instruments comprise cash deposits additional monies from government to and other items, such as trade fund specific investments. Sums Interest rate risk profile debtors, trade creditors and retained in the business but surplus to The interest rate profile of Ordnance provisions. The main purpose of these immediate requirements are deposited Survey’s financial assets and financial instruments is to finance in a short-term interest bearing liabilities at 31 March 2002 are set Ordnance Survey’s operations. account with the National Loans Fund. out below. All balances are held in sterling: The main risks arising from Ordnance Liquidity risk Survey’s financial instruments are Ordnance Survey has maintained liquidity and interest rate risks. short-term liquidity throughout the

Financial assets Fixed Rate Floating rate Total 31 March 2002 £’000 £’000 £’000 Cash on deposit – 29 000 29 000 Loan to PointX (note 7) – – 140

Cash on deposit at 31 March 2002 consists of four short-term loans to the National Loans Fund for a weighted average period of 98.8 days at a weighted average interest rate of 3.94 per cent. Details of the interest-free loan to PointX are contained in Note 7.

Financial liabilities Fixed Rate Floating rate Total 31 March 2002 £’000 £’000 £’000 Government loans (note 12) 12 353 – 12 353

The fair value of all assets and liabilities approximates to book value.

70 Accounts Direction given by the Treasury in accordance with Section 4(6)(a) of the Government Trading Funds Act 1973.

1. This direction applies to of the Guidance is inconsistent Ordnance Survey. with the requirement to give a true and fair view, the requirements of 2. Ordnance Survey shall prepare the Guidance should be departed accounts for the financial year from only to the extent necessary ending 31 March 2002 in to give a true and fair view. In compliance with the accounting such cases, informed and principles and disclosure unbiased judgement should be requirements of the edition of used to devise an appropriate Trading Funds – Accounts alternative treatment that should Guidance issued by HM Treasury be consistent with both the (the Guidance) which is in force economic characteristics of the for 200l–02. circumstances concerned and the spirit of the Guidance. Any 3. The accounts shall be prepared material departure from the so as to give a true and fair view Guidance should be discussed in of the income and expenditure, the first instance with the total recognised gains and losses, Treasury. and cash flows of Ordnance Survey, and of the state of affairs as at 31 March 2002.

4. Compliance with the requirements of the Guidance will, in all but exceptional circumstances, be David Loweth necessary for the accounts to give Head of the Central Accountancy a true and fair view. If, in these Team, Her Majesty’s Treasury exceptional circumstances, compliance with the requirements 18 February 2002

71 Treasury minute dated 29 March 1999

1. Section 4(1) of the Government 2. The Trading Fund for Ordnance Trading Funds Act 1973 provides Survey will be established on 1 that a trading fund established April 1999 under the Ordnance under that Act shall be under the Survey Trading Fund Order 1999 control and management of the (SI 1999 No. 965). responsible Minister and in discharge of his function in 3. The Secretary of State for the relation to the fund it shall be his Environment, Transport and the duty: Regions, being the responsible Minister, has determined (with (a) to manage the funded operations Treasury concurrence) that a so that the revenue of the fund: further financial objective desirable of achievement by (i) consists principally of receipts in Ordnance Survey Trading Fund respect of goods or services for the period from 1 April 1999 to provided in the course of the 31 March 2004 shall be to funded operations; and achieve a return averaged over (ii) is not less than sufficient, taking the period as a whole, of at least one year with another, to meet 9 per cent, in the form of a outgoings which are properly surplus on ordinary activities chargeable to revenue account; before interest expressed as a and percentage of average capital employed. Capital employed shall (b) to achieve such further financial equate to the total assets from objectives as the Treasury may which shall be deducted the total from time to time, by Minute laid of the current liabilities. before the House of Commons, indicate as having been 4. Let a copy of this Minute be laid determined by the responsible before the House of Commons Minister (with Treasury pursuant to section 4(1)(b) of the concurrence) to be desirable of Government Trading Funds Act achievement. 1973.

72 Written, designed and printed by Ordnance Survey, Romsey Road, SOUTHAMPTON, United Kingdom, SO16 4GU.

Printed in the UK for The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office

07/02

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Trademark acknowledgement

Ordnance Survey, the OS Symbol, ADDRESS-POINT, askGIraffe, Code-Point, DNF, Land-Line, Land-Line.Plus, Landranger, NLUD, Pathfinder and Superplan are registered trademarks and Digital National Framework, Explorer, Get-a-map, MapZone, Meridian, OS, OS MasterMap, OS Select, Our Favourite Places, Outdoor Leisure, Pre-Build, PRISM, Routeplanner and TOID are trademarks of Ordnance Survey, the national mapping agency of Great Britain.

Abbey National is a registered trademark of Abbey National plc. Autodesk is a registered trademark of Autodesk Incorporated. Barclays is a registered trademark of Barclays Bank plc. Centrica is a registered trademark of GB Gas Holdings Ltd. Digimap and Edina are registered trademarks of the University of Edinburgh. East Midlands Electricity and PowerGen are registered trademarks of The Power Generation Company. EuroGeographics is a registered trademark of EuroGeographics. Flemings is a registered trademark of JP Morgan Chase & Co. John Lewis is a registered trademark of John Lewis plc. Kelloggs is a registered trademark of Kellogg Company. Milupa is a registered trademark of Nutricia International BV. Oracle is a registered trademark of Oracle Corporation. PointX is a registered trademark of PointX Ltd. SAP is a registered trademark of SAP Aktiengesellschaft Systeme. Siemens is a registered trademark of Siemens Aktiengesellschaft. Sun is a registered trademark of Sun Microsystems, Incorporated. Trimble is a registered trademark of Trimble Navigation Ltd. Windows is a registered trademark of Microsoft Corporation.

Ordnance Survey acknowledges all other trademarks.

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