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Department for Exiting the European Union Annual Report and Accounts 2016-17

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Department for Exiting the European Union Annual Report and Accounts 2016-17 Department for Exiting the European Union Annual Report and Accounts 2016-17 HC 123 Department for Exiting the European Union Annual Report and Accounts 2016-17 (For the year ended 31 March 2017) Ordered by the House of Commons to be printed 19 July 2017 Accounts presented to the House of Commons pursuant to section 6(4) of the Government Resources and Accounts Act 2000 Annual Report presented to the House of Commons by Command of Her Majesty HC 123 © Crown copyright 2017 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-Government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.uk/Government/publications Any enquiries regarding this publication should be sent to us at: Department for Exiting the European Union 9 Downing Street London, SW1A 2AA https://email.dexeu.cabinetoffice.gov.uk/ Print ISBN 9781474144834 Web ISBN 9781474144841 ID 26041708 07/17 Printed on paper containing 75% recycled fibre content minimum Printed in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty’s Stationery Office Department for Exiting the European Union Contents PERFORMANCE REPORT .......................................................................................................................................... 3 Overview ............................................................................................................................................................. 3 1 Forewords to the Annual Report and Accounts 2016-17 ....................................................................... 3 2 Purpose ................................................................................................................................................... 7 3 About the Department for Exiting the European Union ......................................................................... 7 4 Performance Summary ........................................................................................................................... 8 Performance Analysis .......................................................................................................................................... 9 5 Performance Reporting ........................................................................................................................... 9 6 Performance against Other Required Reporting ..................................................................................13 ACCOUNTABILITY REPORT ....................................................................................................................................15 Corporate Governance Report ..........................................................................................................................15 7 Directors’ Report ...................................................................................................................................15 8 Statement of Accounting Officer's Responsibilities ..............................................................................18 9 Governance Statement .........................................................................................................................19 Remuneration and Staff Report ........................................................................................................................26 10 Remuneration Report .......................................................................................................................26 11 Staff Report .......................................................................................................................................36 Parliamentary Accountability and Audit Report ...............................................................................................40 12 Statement of Parliamentary Supply (subject to audit) .....................................................................40 13 Other Notes on Parliamentary Accountability ..................................................................................45 14 The Certificate and Report of the Comptroller and Auditor General to the House of Commons ....47 FINANCIAL STATEMENTS .......................................................................................................................................49 Statement of Comprehensive Net Expenditure ............................................................................................49 Statement of Financial Position ....................................................................................................................50 Statement of Cash Flows ...............................................................................................................................51 Statement of Cash Flows (continued) ...........................................................................................................52 Statement of Changes in Taxpayers’ Equity ..................................................................................................53 Notes to the Departmental Accounts ...........................................................................................................54 1 Department for Exiting the European Union PERFORMANCE REPORT Overview 1 Forewords to the Annual Report and Accounts 2016-17 Foreword from the Secretary of State In June 2016 the British people made the historic decision to leave the European Union. The Government was clear from the outset that the will of the people had to be respected. Delay and uncertainty would benefit neither us nor our partners in Europe. After the 2017 General Election, where four fifths of the electorate voted for major parties backing the UK leaving the EU, it is even more important that we provide certainty and stability by delivering on that referendum result. What we have begun within the newly created Department and across Government since the referendum will impact millions of people for years to come. To say this Department’s first year was busy or momentous will not only be obvious to many people but is also quite an understatement. The formal negotiations to start our exit from the EU have now begun, laying a foundation for the discussions to come where we are seeking to agree a new deep and special partnership with the EU. In the time between the referendum and the start of those negotiations, the Government established this Department, set out a clear programme of objectives for leaving the European Union in two White Papers – one setting out our twelve point plan for leaving the EU, the other outlining the Repeal Bill – passed the legislation required to trigger Article 50 and started the two-year process we have now entered. We have used this time to develop our thinking on all of the challenges and opportunities created by the UK leaving the EU. We are now in a strong position to deliver a smooth and orderly exit. We have always said that we will speak to anyone and everyone to ensure we get the right deal. The Department has led the work across Government to identify and seize the opportunities created by leaving the EU. We have led work with our partners and stakeholders in the devolved administrations, Parliament and business and civil society. We are seeking a deal that is in the national interest and works for everyone in the country, irrespective of their background, where they live, or how they voted. So as the first year and first phase of the UK’s exit from the EU has ended, another year and another phase start with the negotiations for our exit deal now underway. I know that with the continued energy and creativity shown by the Department so far, we will deliver a deal that works for everyone. Rt Hon David Davis MP, Secretary of State for Exiting the European Union 3 Forewords Foreword from the Permanent Secretary This has been an extraordinary first year for the Department. The task of supporting the Government to deliver its programme for exiting the European Union is one of unprecedented scale and complexity. I am immensely proud of the creativity, flexibility, and energy that officials in the Department have shown. Along with colleagues across Government, we have helped to deliver the legislation for triggering Article 50, published a clear programme of policy through two White Papers, and facilitated six Joint Ministerial Committee meetings and 11 Ministerial oral statements to Parliament and debates. All of this on top of significant amounts of preparation for the negotiations with the European Union, which have now formally started. We started as a small team in July 2016 but by the end of March 2017 had grown six-fold, and have continued our steady growth since then. For the financial year 2016-17 we established a budget that provided sufficient flexibility for a range of different planning scenarios as we moved through our initial set-up phase. Ultimately, the Department was able to establish itself and deliver during this period within a reduced expenditure profile. We will continue to undertake regular reviews of our structures and operating expenditure to ensure funding remains appropriate. We have recruited first class officials from across the Civil Service
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