Annual Report and Accounts - gov.uk...Annual Report and Accounts 2016‑17 (for the year ended 31 March 2017) Accounts presented to the House of Commons pursuant to Section 6(4) of

Annual Report and Accounts2016-17

HC 124

Department for International TradeAnnual Report and Accounts

2016‑17(for the year ended 31 March 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.

Annual Report and Accounts presented to the House of Lords by Command of Her Majesty.

Ordered by the House of Commons to be printed on 19 July 2017

HC 124

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Contents

Foreword by the Secretary of State 6

Performance Report

Overview

Permanent Secretary’s Statement 7

Who we are 9

What we have done 12

Analysis

Performance Report and Activities 18

Financial Review 20

Accountability Report

Corporate Governance Report

Lead Non‑Executive’s Report 23

Ministers and Departmental Board Members 24

Statement of Accounting Officer’s Responsibilities 26

Governance Statement 27

Other Public Interest Statements 37

Remuneration and Staff Report 39

Parliamentary Accountability and Audit Report

Statement of Parliamentary Supply 52

The Certificate and Report of the Comptroller and Auditor General to the House of Commons 57

Financial Statements 59

Department for International Trade Annual Report and Accounts 2016-17 5

Foreword by the Secretary of State

The first year of the Department for International Trade’s (DIT) existence has been a remarkable one. An entirely new government Department has been created almost from scratch – the most significant reorganisation of Whitehall for many years.

This report serves to highlight some of our achievements. We have begun work to establish the UK’s independent membership of the WTO, instigated 10 Trade Policy Working Groups with fifteen countries, contributed to an estimated £41.6 billion worth of additional exports and sustained over 91,000 jobs as a result of record levels of foreign direct investment into the UK.

We should all be proud of the clear success of our Department in boosting Britain’s prosperity. Yet there is more to do; each of us in this Department shares the high ambitions for DIT and for Britain.

The Department for International Trade has a vital mandate. For the first time, we have united all of the UK’s trade functions under one roof, with the task of developing and implementing this country’s newly independent trade policy.

Britain has always been a great trading nation, and a global advocate of free and open trade. We have always recognised that commercial freedoms are not only the foundation of our national prosperity, but also create jobs, raise living standards, and liberate the world’s poor.

That is why this Department is building a trade policy that works for everyone. This year, we will reconvene the Board of Trade, with a membership charged with unlocking the potential of every corner of the United Kingdom and we will appoint nine Her Majesty’s Trade Commissioners to lead export promotion, investment and trade policy overseas.

Our active international engagement will not only attract the best international companies to UK soil, but also ensure that the highest‑potential UK firms have the opportunity to expand and succeed globally, forging a new culture of exporting, and enhancing our international influence.

I am exceptionally proud of DIT for all we have achieved so far. We have a clear vision for the future, and the means, drive and talent to realise it. Together, we can build a truly Global Britain.

The Rt Hon Dr Liam Fox MP

6 Department for International Trade Annual Report and Accounts 2016-17

Performance ReportOverview

Permanent Secretary’s Statement

The Department for International Trade (DIT) was created in July 2016 to promote British trade across the world. It has responsibility for developing, coordinating and delivering new trade policy across the globe; developing and negotiating trade and market access deals with non‑EU countries; negotiating plurilateral trade agreements; supporting the UK’s WTO membership and representation; and facilitating inward and outward investment.

For the first time, the UK has brought together expertise charged with financing and promoting international trade and investment, and championing free trade, under one Secretary of State. Since the Department was set up, we have moved swiftly to put in place the necessary governance, people, and legal and financial functions. At the same time, DIT has quickly established and strengthened working relationships across Whitehall, with its international counterparts, and with businesses.

This is the Department’s first Annual Report and Accounts. Over the period since it was formed, the Department has increased in headcount by more than 20% to a global workforce of over 3,000 people; launched great.gov.uk, which has attracted over 2.4 million site visits; supported UK businesses to attend over 600 events including the British House at the Olympic and Paralympic Games in Rio; and worked through its international network to attract and retain a record amount of foreign investment to the UK. DIT has also taken its place at the centre of global Britain, taking on responsibility for the government‑wide GREAT Britain campaign, which encourages people to visit, do business, invest and study in the UK.

In our first year, we have made significant progress in building the capabilities the Department will need to deliver its challenging agenda ahead, and created an engaged, expert, entrepreneurial and inclusive environment in which to work.

I took up post as Permanent Secretary on 27 March 2017. On behalf of the team, I am proud of all we have achieved since DIT was established, and I am enthused about the task ahead.

Antonia Romeo



Who we are

Our visionThe Department for International Trade (DIT) helps to secure UK and global prosperity through free trade, greater investment and increased exports.

The Department is responsible both for promoting and financing UK trade and investment, and for developing and negotiating the international trade rules within which British businesses will operate once the UK leaves the EU.

Our people across the UK and overseas help UK businesses to reach their full potential by maximising the benefits that flow from trade and investment opportunities.

We provide a broad range of support for potential exporters in the UK, as well as building the global appetite for British goods and services. We champion the UK abroad to potential investors, and work closely with Whitehall partners to promote development through investment in emerging economies.

Organisational structure

The Department for International Trade (DIT) was established on 13 July 2016. The creation of DIT brought together expertise on trade policy, trade promotion, investment and export finance from four existing organisations: UK Trade & Investment, Trade Policy team from the former Department for Business, Innovation and Skills, the GREAT Britain campaign from the Cabinet Office, and UK Export Finance.

The new Department is focused on using this expertise to ensure the UK is firmly at the forefront of global trade and investment.

DIT is organised into the following directorates:

• International Trade and Investment (ITI) drives growth in the value of UK exports, and supports investment into and out of the UK. We work with businesses and industry leaders at home and abroad, to support businesses to export, to promote UK goods and services overseas and to maximise investment. We drive government strategy on how we can support trade for each industry sector. ITI also works in collaboration with the Devolved Administrations to help promote the UK’s exporting capability as a whole.

• Trade Policy Group (TPG) is responsible for delivering the best international trading framework for the whole of the UK to maximise global trade and investment opportunities. In developing and delivering the international trading framework we are committed to:

– Leading by example through our open economy and pursuit of free trade;

– Developing, supporting and enforcing a fair, proportionate rules‑based system for trade;

– Developing a trade agenda which supports foreign policy, security, and development goals; and

– Developing a trade agenda that is inclusive and transparent.

Strategic objectives

The Department for International Trade is responsible for delivering a new trade policy framework for the UK, and promoting and financing British trade and investment across the world, to ensure Britain is firmly at the forefront of global trade and investment. Our ultimate aim is to drive UK and global prosperity through free trade, exports and investment. To achieve this, the Department’s strategic objectives are to:

• Promote and provide support to UK exports, offering a range of business support that includes export finance and insurance, to grow an economy that works for everyone;

• Maximise opportunities for wealth creation through supporting Foreign Direct Investment and Outward Direct Investment;

• Deliver the best international trading framework for the whole of the UK to maximise global trade and investment opportunities; and

• Build the global appetite for British goods and services and encourage more people to visit, study, invest in and do business with the UK through the GREAT Britain campaign.


The GREAT Campaign works with government departments across Whitehall to raise the profile and reputation of the UK abroad

• The GREAT Campaign works with government departments across Whitehall to raise the profile and reputation of the UK abroad. This sustains demand for British goods and attracts investment which strengthens our economy.

• UK Export Finance (UKEF) is the UK’s export credit agency, which works to ensure that no viable UK export fails for lack of finance or insurance from the private sector, while operating at no net cost to the taxpayer. UKEF operates under its own Act of Parliament, and under consent from HM Treasury and has its own Parliamentary Vote. It operates as a separate government department reporting to the Secretary of State for International Trade, but is strategically and operationally aligned with the Department for International Trade, and UKEF’s CEO reports for line management purposes to the Permanent Secretary of DIT.

DIT staff are located in 174 posts in 108 countries and provide tailored support and advice for businesses of all sizes. The Department’s overseas network is located in British embassies, High Commissions and consulates across the world, allowing DIT and Foreign and Commonwealth Office staff to work together to secure the best outcomes for British businesses.

This Annual Report and Accounts includes the finances and performance of the constituent parts of DIT – ITI, TPG and the GREAT Campaign – for the whole financial year. Prior year comparatives have been restated to report as if the Department has always existed in its current form. The finances and performance of UKEF are reported separately in UKEF’s own Annual Report and Accounts.

UKEF AND DIT SUPPORTS BIWATER CONTRACT WITH KURDISTAN REGIONAL GOVERNMENT

In 2015, UK exporter Biwater secured a contract with the Kurdistan Regional Government to work on a project providing water treatment solutions for the cities Erbil and Sulaymaniyah in the Kurdistan region of Iraq. The project aims to alleviate the strain on the existing infrastructure in the region, reduce its reliance on dwindling groundwater reserves, and ultimately deliver long‑lasting environmental benefits.

To finance the preliminary scoping phase of the project carried out by Biwater in 2016 – including social and environmental impact assessments, relevant site surveys and detailed designs – UKEF was able to provide a US$34.8m loan to the Kurdistan Regional Government under its direct lending facility. This was the first time an export credit agency provided a loan to a regional government in Iraq.

Collaboration across DIT and with other Government colleagues in Erbil and Baghdad played a crucial role in the success of the transaction. As well as co‑ordinating initial contact between UKEF and Kurdistan Regional Government representatives, DIT staff acted as essential liaisons in the country, using their regional expertise to ensure UKEF visits ran smoothly, safely and were able to make the fullest use of their time.


DIT staff are located in 174 posts across 108 countries and provide tailored support and advice for businesses of all sizes


What we have doneTrade PolicySince the Department’s creation, we have focused on building the talent, capacity and capabilities required to deliver a world class trade negotiation function for the UK. A core part of this has been more than quadrupling the number of people working within the trade policy team over 2016‑17. DIT and the Foreign and Commonwealth Office (FCO) have jointly launched the Trade Policy and Negotiations Faculty to deliver high quality training to officials across Whitehall. We will continue to build on this work in 2017‑18 to put in place the best possible team to create an independent trade policy for the UK for the first time in over four decades.

DIT is working closely with the Department for Exiting the EU (DExEU) as we contribute our trade policy expertise to preparations and negotiations for our exit. We are planning and preparing the necessary legislation and operational frameworks required in order to manage our trade policy when we leave the EU.

Since July 2016, DIT has established a series of working groups and high‑level dialogues to explore how we progress our trade and investment relationships. Ten trade policy working groups have been announced with the Cooperation Council for the Arab States of the Gulf, Australia, China, Israel, India, New Zealand, Norway, Turkey, South Korea and the USA. Where there are existing trade agreements between the EU and third countries we are exploring how these can be transitioned to bilateral agreements with the UK once we have left the EU.

This year the Trade Policy Group has continued to engage with the G20 to shape the wider international trade agenda, and has worked to fulfil the UK’s role in promoting the European Union’s trade agenda while we remain a member. Work also started to establish the UK’s independent membership of the World Trade Organisation (WTO), building the UK capability to play a full and active role. On 22 February the ground‑breaking WTO Trade Facilitation Agreement came into force. The UK fully supported this historic agreement to simplify, modernise and harmonise import and export processes – making it easier to trade across borders.

In order to promote global security through strategic export controls and facilitate responsible exports, the Export Control Joint Unit (ECJU) began operations in July, bringing together operational and policy expertise from the Department for International Trade’s Export Control Organisation (ECO), the FCO and the Ministry Of Defence (MoD).

10 Trade Policy working groups


In 2016-17 UK businesses have told us that we have assisted them to achieve exports valued at £41.6 billion

What we have done

ExportersIn 2016‑17, UK businesses have told us that we have significantly assisted them to achieve exports valued at an estimated £41.6 billion.

Our new ‘demand led’ operating model aligns teams at our overseas posts, who are responsible for finding and creating demand for British goods and services, with our sector teams in the UK who work to build the supply of export ready businesses. DIT works across the whole of the UK to provide support to businesses to overcome the barriers to exporting. We are developing and expanding the range of products and services we provide to encourage UK businesses to start, increase or sustain their exporting activity.

DIT’s e‑exporting programme helps UK companies sell their products and services to millions of global customers and grow their business through online exports. We have negotiated preferential rates for 15 e‑marketplaces, reducing the costs of selling through these platforms for UK businesses. In 2016‑17, our new ‘Selling online overseas’ tool was launched enabling UK companies to set up on e‑marketplaces and identify major new marketplaces around the world to sell through.

In November 2016, we launched great.gov.uk, a new digital platform that acts as a single destination for trade and investment services and connects UK businesses with international buyers and investors. Companies can access practical advice and a suite of new services to help them export. There have been over 2.4 million unique visitors to the site since it launched, and over 37,900 responses to export opportunities. In addition, over 3,204 companies have signed up to ‘Find a Buyer’ service which links UK companies to buyers overseas.

ONLINE MARKETPLACES PROPEL FREESTYLEXTREME

FreestyleXtreme is an action sports retailer with offices and a distribution centre in Bristol. Within seven years, they have grown from a team of 8 people to over 70 staff, with a projected annual turnover of over £20m. They credit e‑marketplaces as a fundamental part of their growth.

They had assistance from the Department for International Trade (DIT), who helped them set up a local cooperative to reduce international shipping costs. They are also in the process of appointing an in‑country partner, who will help launch on leading Chinese and South East Asian e‑marketplaces.


We have negotiated preferential rates for 15 e‑marketplaces

Defence & Security Organisation

DIT’s Defence & Security Organisation (DSO) has helped the UK defence and security industry increase exports by building relationships with overseas governments, raising awareness of UK industry capabilities, and co‑ordinating UK Government support for export opportunities in overseas markets. During 2016‑17, DSO and other partners continued to help UK defence and security companies achieve success internationally. DSO delivered a global programme of 28 overseas defence and security exhibitions during the financial year and hosted 60 delegations from 35 countries at the Farnborough International Airshow during July 2016.

Attracting foreign investment into the UKDIT supports foreign companies to establish and grow business in the UK by identifying and supporting high value investment opportunities. Our investment services team provides investors with services to facilitate their entry and retention into the UK. In 2016‑17, DIT and its partners helped deliver 1,859 Inward Investment projects to the UK, which represents a 7% increase on 2015‑16.

DIT also installed the first ever UK pavilion at MIPIM (Le marché international des professionnels de l’immobilier) in Cannes this year. This global real estate fair was attended by more than 5,000 investors from over 90 countries. The UK pavilion hosted over 25 events, including the launch of a portfolio of 19 projects showcasing some of the most exciting investment opportunities across the Midlands region to international investors.

The DIT Northern Powerhouse (NPH) Team works to promote the North at home and overseas in order to attract inward investment and boost exports. The team also works across government to collectively promote the North. The NPH team hosted a number of incoming missions for officials and potential investors, including from delegations from the US, Latin America, and the Mediterranean region, to increase their knowledge of the market opportunities available in the North. The Team brought 63 international delegates from 22 countries to Innovate 2016 in Manchester, and showcased new technologies and innovation opportunities across the North.

The Department’s Venture Capital team helps promote and drive investment into innovative UK businesses. Our digital platform, great.gov.uk, has a new investment service, ‘Invest in GREAT Britain and Northern Ireland’, that links overseas investors to UK opportunities. It is supported by a comprehensive marketing programme overseas, and there have been over 670,000 unique visitors to investment pages on great.gov.uk.

SOMERSET’S SUPERACT LEADS URBAN INNOVATION ACROSS EUROPE AND CANADA

Somerset‑based not‑for‑profit organisation, Superact, has tapped into its eleven year international expertise to secure a deal to lead Future DiverCities, a four year project to promote urban innovation and cultural diversity across Europe and Canada. A 10‑partner project across two continents, Future DiverCities is working to support new and emerging new media and urban artists to engage with challenging urban issues and share the creative process with new communities and non‑mainstream audiences.

Community interest company, Superact works with people in healthcare, education and the criminal justice system to gain access to arts‑based projects and initiatives to improve the health and wellbeing of communities in the UK and internationally.

Founded in 2006, Superact started out delivering small, community projects across the South West and in Bristol. Now, the 14‑strong team leads on projects across the UK, Europe, India and Thailand. Throughout this time, the company has worked closely with the Department for International Trade (DIT) to develop the skills and contacts needed to build an effective export strategy, and credits DIT for encouraging them to think ‘bigger’ than just the UK market.

BUILDING RELATIONS WITH CHINA

The growing commercial relationship between the UK and China offers the opportunity to expand trade and investment between the two countries. In 2016, Chinese state‑owned construction company CNBM announced a £2.5 billion investment to help tackle the UK’s housing shortage. The project will see CNBM build six factories across the UK.

This year also saw our new Capital Investment Unit launch the China‑UK Infrastructure Academy together with the Bartlett School at University College London. This major new initiative will help train Chinese companies and officials on investment processes in the UK and so encourage greater Chinese investment in UK infrastructure projects.


Promoting the UK abroadGREAT Britain

The GREAT Campaign works to encourage the world to visit, study and do business with the UK, generating jobs and growth for the UK. It is active in over 144 countries. This year saw the first full year of operation for the ‘Exporting is GREAT’ initiative, which aims to encourage businesses to consider and start exporting. In January 2017, DIT launched two new targeted international campaigns under the GREAT brand with the aim of increasing inward investment and the demand for UK Exports globally.

Visits and Events

Our teams promote UK exports and inward investment at a range of international events. This year these have included the inaugural Commonwealth Trade Ministers’ Meeting, the British House at the Rio Olympic and Paralympic Games, and the Qatar‑UK Business Forum.

In the UK, the two‑day Qatar‑UK Business Forum, led by the Secretary of State, brought together Ministers and senior government representatives from both countries, to encourage trade and investment. During the Forum, it was announced that Qatar will invest £5 billion across the whole of the UK.

In March 2017, the UK and Malta co‑hosted the inaugural Commonwealth Trade Ministers’ Meeting in London. The Meeting brought together politicians, officials and policymakers from over 35 Commonwealth nations to promote greater trade and investment within the Commonwealth.

In the summer of 2016, the British House at the Olympic and Paralympic Games in Rio showcased UK business, culture, sport and tourism, and welcomed almost 6,000 international guests and senior global business leaders – including the CEOs of WPP, Deloitte and the Financial Times.

Trade Envoys and Business Ambassadors

The Trade Envoy programme supports the Government’s goals of promoting UK exports and inward investment. Envoys are selected for their experience, skills and knowledge of a particular sector or market and work on an unpaid basis, to support the Government’s overall strategy to drive economic growth. There are currently 20 Trade Envoys, covering 40 markets. In 2016‑17 they undertook over 50 visits worldwide.

The Business Ambassadors network consists of 44 senior business leaders. They act as powerful advocates for the UK abroad, promoting UK goods and services, and helping to secure inward investment to the UK. For example in January 2017, Business Ambassador Lord Kakkar (Health and Life Sciences) and Health Minister Nicola Blackwood led a high level UK delegation of clinical institutions, academics and life science companies to Dubai for the Arab Health 2017 Exhibition and Congress. The visit promoted UK expertise and showcased a full range of products and services.


Our MinistersIn the past year DIT has organised 83 ministerial visits to 46 priority markets, to strengthen trading relationships, promote the UK as a destination for foreign investment and help grow demand for UK exports. International Trade Secretary, Dr Liam Fox MP, visited 14 markets last year, including India where he met with business leaders and technology entrepreneurs to showcase UK expertise and innovation.

The Secretary of State also visited Germany, Switzerland, Brazil, Vietnam, Qatar and the USA. On his visit to the USA, the Secretary of State travelled to Chicago and Los Angeles where he met with investors Boeing, Caterpillar and AEG. In Brazil, he co‑chaired the UK‑Brazil Joint Economic and Trade Committee, and during two visits to Germany he held roundtables with businesses and German industry bodies delivering the message that the UK remained committed to the success of the EU as a strong trading partner.

Ahead of the G20 trade ministers meeting in Shanghai, the Minister for Trade Policy, Lord Price, met government officials, business representatives and investors in China and Hong Kong leading to major commitments from Chinese conglomerates, including Fosun and Huawei, on inward investment to the UK. The Minister for Trade and Investment, Greg Hands MP’s visit to Argentina in March 2017 led to the announcement of a package of measures to boost

our commercial relationship and the creation of a UK‑Argentina Commercial Dialogue.

The Department is determined to ensure that all nations and regions of the UK benefit from trade opportunities and DIT ministers made 35 visits to the English regions and Devolved Administrations last year. In March, DIT organised the first Midlands Engine Trade Summit, where Parliamentary Under Secretary of State Mark Garnier MP showcased a range of investment opportunities in the region and announced 28 new Midlands ‘Export Champions’ as part of a programme to encourage and inspire businesses to export internationally. The 28 high profile business leaders from across the region are offering the expertise and advice to inspire companies to export for the first time and to support existing exporters looking to expand into new markets.

The British House at the Olympic and Paralympic Games in Rio welcomed almost 6,000 international guests


The GREAT campaign is active in over 144 countries


Working across GovernmentTrade is a key part of the Government’s wider agenda and as such, the Department for International Trade works closely with other government departments as part of a whole of government approach.

• Making the most of the opportunities that we have in trade is critical to making a success of Brexit, and we are working with the Department for Exiting the European Union (DExEU) to contribute our trade policy expertise to input into DExEU’s preparations and negotiations.

• Trade acts as an enabler for prosperity across the world and as such we work closely with the Department for International Development to support the Government’s development objectives, helping to bring prosperity to developing countries.

• DIT will continue to work closely with FCO, DFID and others, to ensure UK business is ready to compete for the opportunities created by the Cross‑Whitehall Prosperity Fund.

• We are working closely with the Department for Business, Energy and Industrial Strategy, with trade and investment as a key pillar of the Industrial Strategy.

• Our role spreads even further across Whitehall, through the GREAT campaign which works with 23 government departments to raise the profile and reputation of Global Britain. This sustains demand for British goods and attracts investment which strengthens our economy.

A summary of the risks facing DIT in 2016‑17 is included in the Governance statement on page 33.

Performance Report and Activities

AnalysisPerformance Metrics

The UK is operating against a backdrop of weak international trade growth. In 2016 the volume of world trade grew by only 1.3%, slower than the 2.3% expansion in global output. The World Trade Organisation is projecting a gradual pick‑up in trade, with global volumes expected to increase by between 1.8% and 3.6% in 2017, before rising further to between 2.1% and 4% in 20181. However, there is continued uncertainty about prospects for global trade reflecting the unpredictable direction of the global economy. Global Foreign Direct Investment (FDI) flows fell 13% in 2016, as global economic growth and world trade remained weak. The projected recovery in global output and trade is expected to lead to an increase in FDI flows in 2017, but as with trade, uncertainties continue2.

We measure the impact of our work by the business performance of the exporters we serve and investments delivered. Our objectives are to drive up the number of exporting UK companies as well as the overall value of UK exports and to maximise inward and outward investment. However, 2016‑17, has been a transitional year with performance measured using metrics agreed through legacy frameworks, while we review and refresh both our targets and key performance indicators to best reflect the objectives of the new Department. Analysis of UKEF’s performance in 2016‑17 is reported in the UKEF Annual Report and Accounts.

Through 2016‑17 our support for export performance was focused on ensuring that we were as aligned as possible to the then HMG manifesto commitments: the ambition of £1 trillion exports and 100,000 more exporters by 2020. Our measures were focused on maximising export value for our customers. We worked across our network and with partners to promote the UK as a destination for investment. Our support was aligned to the HMG manifesto commitment to maintain the UK’s leading position as a location for investment in Europe.

The tables below show the results DIT has achieved against its key performance indicators for trade development and inward investment promotion for 2016‑17.

Trade 2016‑17

Target Overall

outcome

Value of our customers’ export wins3 £26 bn £41.6 bn

New exporters supported to achieve export wins4 2,000 2,811

Investment 2016‑17

Number of involved inward investment successes 1,685 1,859


Parliamentary Under Secretary of State Mark Garnier MP showcased a range of investment opportunities in the region and announced 28 new Midlands ‘Export Champions’

1 Source: WTO Press/793 Trade Statistics and Outlook, April 2017 https://www.wto.org/english/news_e/pres17_e/pr791_e.htm2 Source: Global Investment Trends Monitor No.25, February 2017 http://unctad.org/en/PublicationsLibrary/webdiaeia2017d1_en.pdf3 ‘Export wins’ is a new, exploratory metric that will be developed further in 2017‑18. The metric captures the customer’s expected export value and not actual value over a 5‑year period. The metric only captures customers we have assisted who have realised a deal, not those we have worked with but have not reached a deal. As this is a new and exploratory measure, a systematic validation process is being developed.4 A new exporter is a business that did not export in the previous 12 months. Our teams in the English Regions provide the majority of the direct support to new exporters.

Exports

DIT staff in the UK and overseas deliver a range of services to help companies export. We target those markets and sectors where the opportunities are greatest and help companies make their mark abroad. UK companies tell us that in the financial year 2016‑17, DIT provided significant support for an estimated £41.6 billion of export wins.

Inward Investment

The EY attractiveness Survey 2017 showed the UK remained the destination of choice in Europe for FDI – based on project numbers1. The investment results for 2016‑17 show an improvement in performance from the previous year, with DIT and its partners helping deliver 1,859 successful inward investment projects in 2016‑17, a 7% increase on 2015‑16.

1 Source: UK Attractiveness Survey 2017, May 2017 http://www.ey.com/uk/en/issues/business‑environment/ey‑uk‑attractiveness‑survey

Making the most of the opportunities that we have in trade is critical to making a success of Brexit


Financial Review


IntroductionThis financial review records information on the use of resources voted by Parliament directly to DIT via the Supply Estimates process. Prior year comparatives are provided in brackets.

Scope of the Accounts

The Financial Statements for the year to 31 March 2017, (on pages 59 to 78), and also the Statement of Parliamentary Supply with associated schedules (on pages 52 to 56) cover the new Department, which brought together the former UK Trade & Investment (UKTI, a non‑ministerial department with joint reporting links to the former Department for Business, Innovation and Skills (BIS) and the FCO), the Trade Policy unit – from former BIS, and the GREAT Britain programme team from the Cabinet Office.

Machinery of Government Changes

The creation of the new Department was announced in July 2016, and it became a formal legal entity in November 2016. In accordance with HM Treasury accounting rules for Machinery of Government changes our accounts reflect each of the transferring functions – UKTI, Trade Policy Group (TPG) and the GREAT programme team – from the start of the financial year. Prior year comparatives have also been restated to include the transferring functions of the Department.

Funding for the year 2016‑17

As with other Ministerial Government Departments, our operations are almost entirely funded by an Exchequer grant, voted by Parliament by means of the Department’s submission of expenditure ‘Estimates’ which have been agreed by HM Treasury. In the accounts, the net grant is shown as ‘From Consolidated Fund (Supply)’. This is the cash payment for our capital and resource expenditure for the year, less adjustments for non‑cash items, such as depreciation, and for balance sheet movements.

Our total budget for 2016‑17 is shown in the table below:

Figure 1: Table of Total Budget 2016‑17

DIT Revised Baseline Allocation (£m) 2016‑17£m

UKTITPG GREAT

326174

DIT Baseline 347

Additional Autumn Funding StatementMoG transfer from BEIS and the FCO

89

New DIT Baseline 364

Our funding for the year was based on the baseline budgets of UKTI, TPG and GREAT agreed through the 2015 Spending Review. Additional funding, totalling £8.6m, was transferred from BEIS and the FCO through the Supplementary Estimates process, to fund the corporate services, Ministerial offices and estates of the new Department. Additional HM Treasury funding of £7.9m was announced through the 2016 Autumn Statement for the expansion of TPG and to fund the one off costs of creating a new Department.

Outturn for the year

All three main categories of spend came in below the control totals – Resource DEL by £6.7m, Resource AME by £3.0m and Capital by £3.5m. This is also confirmed in the tables in the Statement of Parliamentary Supply and associated notes (on pages 52 to 56). The sections below give an analysis of the programme, administration and capital budgets.

The administration budget funds the corporate service functions of DIT, the Ministerial Strategy Directorate and the policy work of TPG. All other DIT activity is considered to be front‑line delivery and is therefore classified as programme activity.

Table 2: Outturn for the year 2016‑17

Budget Budget £m

Actual £m

Variance

Administration 35.3 29.7 5.6

Programme 316.1 315.0 1.1

Total Resource DEL 351.4 344.7 6.7

Resource AME 3.0 – 3.0

Capital 9.8 6.3 3.5

Total Budget 364.2 351.0 13.2

Resource DEL Expenditure

The table below shows the Department’s resource DEL expenditure budget, outturn and variance for the year.

Figure 3: Table of DIT Expenditure Against Budget 2016‑17

Business Area Budget£m

Actual£m

Variance£m

International Trade and Investment 263.7 260.6 3.1

Centrally Managed 47.1 43.5 3.6

Trade Policy Group 17.2 17.1 0.1

GREAT 4.0 4.0 0

Corporate Services and Ministerial Strategy 19.4 19.5 (0.1)

Total 351.4 344.7 6.7

In 2016‑17 DIT’s net resource spend was £344.7m (2015‑16 £341.2m), resulting in an overall underspend of £6.7m. The main elements of underspend are set out below:

The £3.1m underspend in ITI largely relates to staff vacancies across our overseas network which meant that outturn for the network was £1.5m below budget. There was also an underspend of £0.5m across the portfolio of digital projects in progress in 2016‑17.

The £3.6m underspend against the Centrally Managed budget reflects the underspends identified through our quarter three review process and then transferred to a central budget to allow DIT to reprioritise as needed. These relate to delays in our recruitment plans for TPG and DIT Corporate Services. This budget also includes the annual charge for our use of the overseas FCO platform and includes services such as estates, I.T. and security for DIT staff at overseas posts. This was £43.5m in 2016‑17.


Capital expenditure

Outturn was £6.3m against a budget of £9.8m. The underspend of £3.5m relates to the deferral of some planned digital and estates activity into the next financial year due to the timing of DIT transition. The capital spend this year included:

• £2.7m related to the development of the new great.gov.uk website which launched in November 2016. The site is the Government’s single destination for information on UK trade and investment, and will become the main route for businesses to access help and advice, source export opportunities, and sell products and services online.

• £1.7m for the development of the new customer information database for DIT, due for launch in 2017‑18. The database will enable better management of our relationships with UK businesses through aggregation of data held by DIT and other government partners about a given company. DIT will be able to track real‑time performance information about exports and investments.

• £1.8m on the updated online export licensing tool, due to be launched in 2017‑18. This tool will allow companies to apply online for an export or trade license.

Annually Managed Expenditure

DIT has an annually managed expenditure limit (AME) of £3m to cover potential provisions relating to incentivised contract payments. This year no such provision was made as DIT expects performance targets to be met and so incentive payments were accrued rather than provided for, as at 31 March 2017.

Income Received

£4.2m (2015‑16 £6.5m) of income was received in 2016‑17. This income largely consisted of fees and charges for events, sponsorship and the Overseas Market Introduction Service (OMIS). The reduction in comparison with 2015‑16 was due to a fall in sponsorship income received, and a continued drop in OMIS income. The fall in OMIS income was due to a change in strategy which focused overseas posts on the work that can add the greatest value to the UK economy rather than on targets for wider revenue generation for the Department. The Department is currently reviewing its income policy.

Future Budgets

The total budget for DIT in 2017‑18 has been agreed as £373.9m – consisting of £364.3m Resource DEL £3.0m AME and £6.7m capital. Further details of future year budgets are included in the core tables in Annex B.

Antonia Romeo Accounting Officer 11 July 2017


Accountability Report

Corporate Governance ReportLead Non‑Executive’s Report

I was honoured to have been appointed by the Secretary of State as the first Lead Non‑Executive Board Member of the Department for International Trade. The inception of a new government department inevitably poses challenges as well as opportunities: these are much magnified by the pivotal nature of the choices facing the UK economy. As a strong supporter of free trade, I am delighted to have a role in setting up a department focused solely on trade.

The Department has come a long way since it was formed in July 2016. At that point, trade gained an elevated profile and a seat in Cabinet, reflecting the importance that the new Prime Minister attaches to improving the global trading outcome for the country. Three separate parts of government – UK Trade and Investment, UK Export Finance and the Business Department’s Trade Policy Group – were brought together under one Secretary of State. Throughout

the creation of DIT, each sector kept delivering service as usual, arranging over 100 international visits, launching great.gov.uk and substantially enhancing the UK’s trade policy capability.

Three further Non‑Executive members have been appointed to the Departmental Board: Julie Currie, who brings a wealth of experience from Lloyds Banking Group and the Lloyds Bank Foundation, who chairs the Audit and Risk Assurance Committee; Dr Pippa Malmgren, who has a strong background in economic and trade policy; and Noel Harwerth, whose extensive finance sector experience will ensure rigorous oversight of UK Export Finance.

My role as Lead Non‑Executive, is to bring together my fellow Non‑Executive Board members to provide constructive independent challenge and to improve wider government co‑ordination. Over the past six months we have been closely involved in the development of the Single Departmental Plan which sets out the Department’s function and operations.

With Ministers and Executives, we have come together monthly to support and challenge the work of the Department as it develops at pace. Discussions have included cyber security issues, the roll‑out of great.gov.uk, and the future of the Overseas Network. These are key aspects of our mission to enhance exports and investment at a time of major change.

I thank all of the Board, including the Secretary of State and Ministers, for their support and the importance they have placed on the Board’s role. Sir Martin Donnelly’s leadership throughout the transition has put us in a strong position to develop and deliver. I welcome Antonia Romeo, his successor as Permanent Secretary, and look forward to building on the Department’s excellent start as we work to maximise free and open trading relationships.

Simon Walker CBE Lead Non‑Executive Officer


Ministers and Departmental Board Members

Dr Liam Fox (from 13 July 2016)Secretary of State is in overall charge of all policies and sectors, both directly and through his Ministers. He will personally lead on the defence and security sector and will be involved in the most significant global deals across all sectors.

Greg Hands MP (from 15 July 2016)Minister of State for Trade and Investment leads on trade and investment promotion in five sectors: technology & smart cities, infrastructure, energy, healthcare and life sciences. He is also be leading on: cross‑Whitehall alignment; business planning of the Department’s trade and investment promotion work; economic diplomacy and the prosperity fund; UK Export Finance; and policy direction on topics such as mergers and acquisitions and Outward Direct Investment (ODI).

The Lord Price (from 16 July 2016) Minister of State for Trade Policy leads the Trade Policy Unit, which leads for the Department on developing, coordinating and delivering a new trade and investment policy. This includes our dealings with the World Trade Organisation, and other bilateral and multilateral partners.

Mark Garnier MP (from 17 July 2016) Parliamentary Under Secretary leads on trade and investment promotion in five sectors: financial services, advanced manufacturing and aerospace, automotive, bio‑economy and consumer, creative & education. He also leads our work with the Export Control Organisation, and our work to help more businesses become exporters.


Departmental Board Members

Antonia Romeo Permanent Secretary DIT (From 27 March 2017)

Sir Martin Donnelly Permanent Secretary DIT (From 13 July to 26 March 2017)

John Alty Director General of Trade Policy (From 14 July 2016)

Further details on the DIT Departmental Board and its Committees are included in the Governance Statement.

Catherine Raines Director General of International Trade and Investment (From 13 July 2016)

Louis Taylor UKEF Chief Executive (From 13 July 2016)

Alison Currie DIT Director of Finance and Corporate Services (From 1 August 2016)

Non‑executive Board Members

Simon Walker Simon Walker CBE was appointed as lead Non‑Executive Board member of the Department for International Trade in November 2016.

Dr Pippa Malmgren Dr Pippa Malmgren was appointed as a Non‑Executive Board Member of the Department for International Trade in November 2016.

Julie Currie Julie Currie was appointed as a Non‑Executive Board member of the Department for International Trade in November 2016. As part of her role she is also Chair of the Audit and Risk Assurance Committee.

Noël Harwerth Noël Harwerth was appointed as Non‑Executive Chair of UK Export Finance in January 2017. As part of this role, she also took up a Non‑Executive role on the DIT Departmental Board.Details of the register of interests maintained for Board Members is included on

page 29 of the Governance Statement.


Statement of Accounting Officer’s ResponsibilitiesUnder the Government Resources and Accounts Act 2000, HM Treasury has directed DIT to prepare for each financial year resource accounts detailing the resources acquired, held or disposed of by the Department during the year, and the use of resource by the Department during the year. The accounts are prepared on an accruals basis, and must give a true and fair view of the state of affairs of DIT, and of its net resource outturn, application of resources, changes in taxpayers’ equity, and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual, and in particular to:

• observe the Accounts Direction issued by HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;

• make judgements and estimates on a reasonable basis;

• state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the Accounts; and

• prepare the Accounts on a going concern basis.

HM Treasury has appointed the Permanent Head of the Department as Accounting Officer of DIT. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records, and for safeguarding DIT’s assets, are set out in Managing Public Money published by HM Treasury.

Accounting Officer’s confirmation

As Accounting Officer, as far as I am aware, there is no relevant audit information of which the Department’s auditors are unaware. I have taken all of the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that the Department’s auditors are aware of that information.

I have sought the necessary assurances from BEIS and the Cabinet Office who have held responsibilities for functions transferred to DIT in 2016‑17. Further details of these assurances are provided in the Governance Statement on page 36.

The annual report and accounts as a whole is fair, balanced and understandable, and I take personal responsibility for the annual report and accounts, and the judgements required for determining that it is fair, balanced and understandable.


Governance Statement1. Introduction

This is the Department’s first annual Governance Statement since its creation in July 2016. It sets out the governance, risk management and internal control arrangements that have operated within the Department from its creation to 31 March 2017, and accords with HM Treasury guidance.

The Department for International Trade was created on 13 July 2016 and gained legal recognition as a department on 9 November 2016. The Department brings together existing expertise on trade policy, promotion and export finance by integrating UK Trade & Investment, the GREAT campaign, UK Export Finance and the Trade Policy Group that was built on existing capability from the former Department for Business, Innovation and Skills. Our aim over the year has been to create a strong and cohesive Department.

Our Departmental Board and other internal governance structures were set up at an early stage, and have been meeting since September 2016. Membership of the Departmental Board comprises Ministers, the Permanent Secretary, Directors‑General, the Director of Finance and Corporate Services and Non‑Executive Board members of the Department, as well as the Chief Executive of UK Export Finance, and the Chair of their Board. Our Non‑Executive Board members were appointed following a thorough recruitment process which included consideration of approximately 180 candidates.

Extensive work has been carried out since the Department was created to ensure that the governance arrangements reflect best practice across government and also the need to join up common themes across what were previously separate organisations or functions. At the same time, we have focused on ensuring that decisions are taken at the right level, and aligned to newly formed Departmental objectives.


2. DIT Governance Structures

2.1 Overview

The Department’s Board and Committee structures are shown in the diagram below.

Nominations and Governance CommitteeChaired by Simon Walker, Lead Non‑Executive Board Member

Meets once per year

Departmental BoardChaired by the

Secretary of State

Members: Ministers, Permanent Secretary,

Non‑Executives, Directors General (DGs)

and Finance Director

Meets ten times per year

Audit and Risk Assurance CommitteeChaired by Julie Currie, Non‑Executive Board Member

Meets four times a year

Executive CommitteeChaired by the

Permanent Secretary

Members: DGs, CEO UKEF, Directors of HR,

Finance, Ministerial Strategy and Transition

Meets fortnightly

Finance, Performance and Risk CommitteeChaired by Alison Currie, Director of Finance and Corporate Services

Meets monthly

People CommitteeChaired by James Norton, HR and Organisational Development Director

Meets monthly

The above Board and Committees have clear remits that ensure clarity and accountability, allowing Board and Committee members to make decisions, monitor performance and manage resources and risk. We have the appropriate membership of our Board and Committees, including Ministers, Non‑Executives, and officials. We have closely followed the guidance set out in the Corporate Governance Code for Central Government Departments, in setting up our governance structures. Biographies of Departmental Board members are available at: https://www.gov.uk/government/organisations/department‑for‑international‑trade

2.2 Departmental Board and its Committees

The Departmental Board brings together the expertise of officials, Ministers and Non‑Executive Board Members to provide support and challenge on overall delivery of the Department’s operational and policy objectives. The Board met six times between July 2016 and March 2017; two of these were in shadow form, before the Non‑Executive Board Members had been appointed. The Board provided collective strategic leadership of the Department and has been focused on building the capacity and capability of the department as well as assessing finance, risk and other cross‑cutting issues. The Board provided strategic input and advice on a range of DIT priorities, including on: trade and investment promotion, trade policy, export finance, departmental security, capability, and the Civil Service People Survey. The Departmental Board is

supported in its work by both the Audit and Risk Assurance Committee and the Nominations and Governance Committee.

The Audit and Risk Assurance Committee met three times between July 2016 and March 2017, providing assurance on the quality of the Department’s accounts, audit arrangements, governance framework and risk management arrangements. The Committee also reviews the work of Internal Audit and the National Audit Office (NAO).

The Nominations and Governance Committee is responsible for ensuring that senior appointments and remuneration arrangements are transparent, fair and support departmental objectives, and ensures effective corporate governance arrangements. This is chaired by the lead Non‑Executive Board member, Simon Walker.


2.3 Executive Committee and Sub‑Committees

The Departmental Board has delegated certain responsibilities to the Executive Committee whose remit is ensuring effective management of DIT, and shaping the strategic direction of the Department. The Executive Committee has met fortnightly during the year, and has overseen operational strategy and corporate planning, people and communications strategies, and performance, finance and risk. In this financial year, the Committee has focused on establishing new capabilities and bringing together existing functions under one new Ministerial Government Department. Areas considered by the Executive Committee include the Department’s structure, strategy and vision, as well as developments in estates, technology, security and digital, staff resourcing and engagement, and stakeholder engagement. The Executive Committee has established two Sub‑Committees to support its work by fulfilling defined roles including ensuring that staff from numerous different locations and budgets from different organisations were transitioned seamlessly.

• The Performance, Finance and Risk Committee has met monthly since November 2016. It has responsibility for overseeing aspects of transition to the new Department, including the agreement of new budgets for the Department, financial governance and corporate policies. In addition, the Committee considers departmental corporate priorities, including: departmental business plans, corporate planning, developing and improving frameworks for the monitoring and evaluation of performance, finance and risk, detailed monitoring of DIT’s performance, overseeing DIT’s finances, investment appraisal and project monitoring.

• The People Committee supports the Executive Committee in building an engaged, expert and diverse

workforce, led by great leaders, underpinned by a high performing and inclusive culture, that delivers the departmental strategy and ministerial priorities. Main items that have been considered this year include the results of the People Survey, Learning and Development and Performance Management.

2.4 Information Management

To enable the Departmental Board and Executive Committee to make informed decisions we have worked to improve data and the capture of management information. Data sheets, financial dashboards and risk registers are now provided to the Departmental Board, Executive Committee, and Performance, Finance and Risk Committee on a monthly basis. These are approved by the Director of Finance and Corporate Services.

The data sheets are collated using data publicly available on data.gov.uk, alongside our own internal metrics. This includes data on: the UK’s economic performance, DIT’s output performance linked to Departmental objectives and corporate functions, as well as including performance against key UKEF metrics. As the data sheets are structured around departmental objectives, they allow Board members to chart and scrutinise progress against key performance indicators. They will continue to evolve alongside the development of our Single Departmental Plan. In addition, the Chief Economist produces monthly data sheets, with standardised statistics, to be made available for all staff to access and use across the network.

2.5 Board and Committee Transparency

A central pillar of the Department’s governance arrangements has been ensuring that transparency is provided around the top‑level governance forums. For the Departmental Board, a readout is provided by the Secretariat and a video message from one of the Board members, usually from the Secretary of State, to allow staff to hear about the topics discussed and the decisions

made. Both of these are published on the Department’s intranet, shared via the staff bulletin to all staff and played at group meetings. For the year ahead, we have established similar arrangements for the Executive Committee, to ensure that blogs are written by members following meetings and summary minutes are circulated to all staff.

2.6 Non‑Executive Board Member Appointments and Diversity

Appointments were run through a process of fair and open competition in line with the Office of the Commissioner for Public Appointments guidelines. All Non‑Executive positions were advertised openly and centrally through the Cabinet Office Public Appointments website. To ensure that the independence of Non‑Executives is maintained they are appointed for a three year fixed period, which can be extended by a maximum of three further years. In addition there are processes in place for registering and mitigating any conflicts of interests. DIT has championed gender diversity; it is the first major Whitehall department to have a female majority of Non‑Executive Board Members.

Non‑Executive Board members, along with all other board members, are required to declare any personal or business interest which may, or may be reasonably perceived (by a member of the public), to influence their judgement in performing their functions and obligations. These are recorded in a register of interests. Where a Board member declares a potential conflict at meetings, it is recorded in the minutes and the Board member takes no part in the meeting for the duration of that item of discussion.

In addition to Board meetings, Non‑Executive Board members contribute to the Department across all priorities. In 2016‑17 this input focused on organisational formation, transition and integration.


2.7 Board and Committee attendance

The table below provides attendance details for the Departmental Board and its main Committees up until March 2017 except for the Nominations & Governance Committee which did not meet during this reporting period.

Meeting attendance per member of meetings eligible to attend

Name of board or committee member NotesDepartmental

BoardExecutive

Committee

Audit & Risk Assurance Committee

Dr Liam Fox MP 6/6

Greg Hands MP 5/6

The Lord Price 5/6

Mark Garnier MP 6/6

Simon Walker 1 3/4

Dr Pippa Malmgren 1 3/4

Julie Currie 1 4/4 2/2

Noel Harwerth 1 3/4

Robert Hull 1 2/2

Richard Vincent 1 2/2

Chris Jenkins 1 2/2

Sir Martin Donnelly 2 6/6 11/11

Antonia Romeo 2 0/0 1/1

John Alty 6/6 11/12

Catherine Raines 6/6 8/12

Louis Taylor 6/6 10/12

Alison Currie 3 4/5 11/12

James Norton 11/12

Paul McComb 8/12

Emma Squire 4 7/7

Darren Tierney 4 5/5

Ministers Non‑Executive Board members Officials

Notes to the Attendance Table:1. The DIT non‑executive board members: Simon Walker, Dr Pippa Malmgren and Julie Currie were not in post until the third Departmental Board in November 2016. Noel Harwerth was appointed to the Board in January 2017. Robert Hull, Richard Vincent and Chris Jenkins were independent members of the Audit and Risk Assurance Committee. They were not members of the Departmental Board. 2. Sir Martin Donnelly left his post as Permanent Secretary on 26 March 2017. He was succeeded by Antonia Romeo on 27 March 2017. She was not in post for the Departmental Boards during the reporting period. 3. Alison Currie joined the Departmental Board in October 2016. 4. Emma Squire went on maternity leave on 18 January 2017 and Darren Tierney took over her role on 30 January 2017.


2.8 Legacy governance arrangements

Prior to the creation of DIT in July 2016, the constituent parts of DIT operated under their own legacy governance arrangements. The UKTI Executive Board met monthly from March 2016 to July 2016 and the UKTI Audit and Risk Assurance Committee met twice. Trade Policy Group and the GREAT campaign operated within the governance frameworks disclosed in the Annual Reports of the Department for Business, Energy and Industrial Strategy and the Cabinet Office respectively.

2.9 Board performance and effectiveness

In April and May 2017, Simon Walker, the Department’s Lead Non‑Executive Board Member, carried out the first annual evaluation of the Departmental Board’s effectiveness, in line with the Corporate Governance Code. During this evaluation, Simon, with support from the Board Secretariat, conducted interviews with members of the Board, as well as receiving further input from Board members and attendees via questionnaires. A component of the Board Effectiveness Evaluation sought views on the data received by the Board. This was deemed to be sufficient for the effective operation of the Board. The Board commented that they had seen positive improvements over the financial year in question, and endorsed continuing to enhance reporting through the work being led by the Chief Economist, including through the development of a monitoring and evaluation framework. This will ensure the Board continues to have the opportunity to enhance the quality of data it receives over the coming year.

The findings of the Board Effectiveness Evaluation and draft recommendations were discussed at the Nominations and Governance Committee on 5 June 2017, which included attendance of the Permanent Secretary. The draft recommendations included ensuring that the Board had sufficient informal time together as well as formal, and that agendas focused on strategy, performance, finance, data and risk. Simon Walker presented the findings and final recommendations to the Departmental Board on 13 June 2017. The Board agreed them and will take steps to implement them. The outcome will be reported next year.

2.10 Compliance with the Corporate Governance Code

We carried out an assessment of the Department’s compliance with the Corporate Governance Code for Central Government Departments. The Nominations and Governance Committee reviewed the results of the assessment in May 2017 and concluded that DIT is compliant with the spirit and principles of the Code, acknowledging that the governance of the Department has been evolving since its formation in July 2016.

The Committee noted that a Board Operating Framework for DIT existed in draft but has not yet been considered by the Board. The Committee also noted that there was only one Non‑Executive Board Member on the Audit and Risk Assurance Committee, rather than at least two as specified in the Code; reflecting our small number of Non‑Executive Board Members. We have ensured sufficient independent scrutiny through appointing three additional independent members to the Audit Committee. The Chair also has a standing update to raise issues to the Board.

3. Risk Management

3.1 Risk Management Process

DIT’s risk management process has built upon former UKTI’s Risk Management Framework that set out the process by which risks are identified, managed and mitigated, and how its risk appetite was assessed. The framework has been reviewed and is currently being strengthened in line with the core elements in the framework for ‘Managing Risk in Government’.

The DIT Risk Framework is owned by the Accounting Officer, with Board and Executive Committee level owners assigned for the Department’s most significant risks to delivery of its objectives. Risks are identified and managed at the operational level in the first instance, including assessment of the four risk categories: Internal; External; Strategic and Major Project. A traffic light system is used to assess the status of each risk based upon its probability and impact and accountabilities for mitigating actions and risk ownership are allocated.

The diagram below sets out the process by which DIT assesses and manages risk. Directorates and Groups regularly review their own risk registers and performance dashboards.


The DIT ExCo reviews and discusses management of top level risk and performance issues; and helps identify wider strategic risks.

The Groups and Directorates identify, assess, address and record risks and risk appetite on an on‑going basis via group Risk Registers.

Groups and Directorates

DIT Risk RegisterDIT Performance

Report

Board and Accounting Officer

DIT Executive Committee (ExCo)

Performance, Finance and Risk Committee (PFRC)

The PFRC meets monthly in advance of the ExCo, to monitor mitigating actions and confirm risks that should be escalated to ExCo.

Audit and Risk Assurance Committee

DIT Risk RegistersDIT Performance

Reports

DIT Risk Management Structure


Risk assessment and management are reviewed and discussed each month at the Performance, Finance and Risk Committee (PFRC), chaired by the Director of Finance and Corporate Services. The Committee assess local risk registers and performance dashboards, oversees a DIT risk register, develops mitigation actions and recommends which risks and performance issues should be discussed at the next monthly Executive Committee.

Both the PFRC and Executive Committee help to verify that DIT is managing the critical strategic risks that could have the greatest impact on performance. The Audit and Risk Assurance Committee reviews the Risk Register and provides independent challenge to DIT’s management in order to give assurance to the Accounting Officer and the Board as to whether risks are being appropriately identified and mitigated. The Risk Register and the process sitting behind its development have been discussed in‑depth at the Audit and Risk Assurance Committee, as well as reviewed by the Departmental Board on a regular basis. The Chair of the Audit and Risk Assurance Committee provides regular read‑outs of the Committee meetings to the Departmental Board, including raising specific risks and the supporting decision making structure.

3.2 DIT’s Main Risks and Actions Taken

During 2016‑17 the main risks to DIT included:

Establishing a new governance framework

There was a risk that effective governance arrangements were not in place as the new Department was formed. The Board and Committees were all in place by September 2016, and all met regularly. Governance processes for UKTI were adopted by DIT and then reviewed to ensure that they were appropriate for the new Government Department.

Trade Policy

There was a risk that the new Department did not have the capacity or structures in place to manage the heavy trade policy workload. DIT established cross‑government forums, engaged international partners, developed detailed policy positions on a new independent trade policy framework for the UK and invested in developing the skills and capability of Trade Policy Group staff.

Operational Delivery

There was a risk that DIT would not be able to meet the targets on the value of exports and the number of exporters which the Department had been set. DIT set up a digital platform to make export opportunities and support available to the widest number of UK companies and set up a system for focusing on high value exports where Government can make the biggest difference.

Machinery of Government risk

There was a risk that adequate funds were not transferred to support the new Department following the Machinery of Government changes. We worked with Treasury to ensure the correct transfer of resource from BEIS and FCO.

People resources and capability

There was a risk that a lack of skills, capability and people could impact DIT’s ability to deliver. We have been designing our operating model and agreeing resource requirements with Treasury. We also developed a Learning and Development strategy and talent mapping exercise. We are developing a learning hub to foster a learning culture across DIT.


4. Other key governance developments

4.1 Governance arrangements with UKEF

Following the creation of DIT in July 2016, UKEF’s work has been aligned with that of trade policy, and trade and investment under one Secretary of State. UKEF’s status as a legally distinct organisation and Ministerial Department of State was not changed under these Machinery of Government changes and remains in effect. There are a number of mechanisms in place to ensure that DIT and UKEF are aligned in their policies and strategy. The UKEF CEO and Chair are members of the DIT Departmental Board, and the CEO is also a member of the Executive Committee, and is line managed by the DIT Permanent Secretary.

The Ministerial Strategy Directorate in DIT undertakes a policy sponsorship role of UKEF. The Directorate works closely with UKEF to ensure strategic alignment of UKEF and wider DIT objectives. This team work closely with UK Government Investments, the government’s centre of expertise in corporate governance and corporate finance, to ensure that the wider DIT context is taken into account when considering issues of UKEF’s corporate governance, including attending the quarterly shareholder meetings.

4.2 Machinery of Government Transition

Following the creation of DIT, a Transition Director was appointed to manage the substantial task of setting up the new Department. In line with Cabinet Office advice and guidance he set up a Transition Programme which brought together all the major tasks required to bring the constituent parts of DIT together into one legal entity. The major milestones identified in the project plan were all achieved to deadline by January 2017.

A three phased approach was used to ensure that financial controls and processes were maintained throughout the transition period and beyond. The first phase saw the constituent parts of DIT continue to operate under their legacy governance arrangements. Following the agreement of a new budget for the Department in January 2017, the policies and processes of former UKTI – the largest component of DIT’s budget – were migrated to the new Department. A rolling review of these policies was then undertaken to ensure that the policies meet the needs of the new Department, and continued to represent best practice.

4.3 Data Handling and Information Security

No personal data related incidents have been reported to the Information Commissioner’s Office.

5. Accounting Officer’s Review of Effectiveness

As Accounting Officer, I am required to conduct an annual review of the effectiveness of the Department’s governance structures, risk management and internal control. I have established a process for this annual review and conducted one for the reporting period when the Department has been in existence. This review is informed by officials, the Department’s internal audit team, external auditors, and other governance reports from which I have received robust assurance.

5.1 Groups’ and Directorates’ statements on governance, risk management and internal control

An Annual Governance Return is completed by Directors and Directors General to review and gain assurance over those parts of the governance structures, risk management and internal control framework for which they have responsibility. Individual discussions with Directors and Directors General, facilitated by Internal Audit, take place to review and challenge the returns. Internal Audit prepares a summary paper and this is used to support the drafting of the Governance Statement. The Foreign and Commonwealth Office (FCO) Internal Audit team has reviewed the governance and controls within the FCO which affect DIT, primarily in relation to the staff based overseas under FCO employment contracts. Furthermore, the Executive Committee is presented with monthly financial management reports, together with the corporate dashboard report which provides an overview of performance, finance and the top risks within DIT. These are scrutinised and challenged by the Performance, Finance and Risk Committee to ensure that the information being received is adequate, timely and of good quality.


5.2 Internal Audit Review of Governance, Risk Management and Assurance Framework

The Government Internal Audit Agency conducted a review and its report has highlighted that DIT has a number of policies and procedures which are in transition and has advised that while there is a governance, risk management and assurance framework in place which reflects good practice, there is a need to formalise and articulate the framework. The recommendations made are being addressed to ensure that robust Governance and Risk Management arrangements are in place.

5.3 Shared Services

During 2016‑17, UK Shared Business Services (UK SBS) was the shared service provider for payroll, HR records, transactional finance and procurement. In April 2017 DIT brought procurement back in house to the newly formed ‘Procurement Hub’. There is an on‑going project to review the shared service requirements of the new Department.

A quarterly assurance letter for each quarter in 2016‑17 was provided by the Chief Executive of UK SBS to the Accounting Officer and to the Director of Finance and Corporate Services. This included giving assurance that the level of services provided will be unaffected during the period of change. The Head of Internal Audit for UK SBS provided two opinions, one on UK SBS customer facing operations and the other for internal operations. Both received a Moderate1 assurance opinion.

1 A moderate assurance opinion that reflects that some improvements are required to enhance the adequacy and effectiveness of the framework of governance, risk management and control.

5.4 UKTI Public Accounts Committee (PAC) Hearing and DIT Commercial Function

PAC Hearing

Following a settlement agreed with PA Consulting in May 2016, arising from a dispute over the charges levied on a contract between UKTI and PA Consulting for the deployment of sector specialists, and the NAO investigation and report published in June 2016, the Public Accounts Committee (PAC) called an evidence session into the dispute on 28 November 2016. The PAC report was published on 5 April 2017 and included a number of recommendations for the Cabinet Office and DIT, including improving commercial capability within DIT, ensuring proactive contract management and implementing robust record keeping. In addition, the PAC recommended that the NAO conduct an independent forensic audit of both UKTI (as was) and PA Consulting to establish the facts.

DIT Commercial Function

DIT’s Commercial Director has led a commercial transformation programme throughout 2016‑17 to develop a Commercial Function better to support the Department’s objectives for trade and investment. Over the past 12 months, significant work has been undertaken to develop the commercial capabilities of DIT; the initial focus being immediate improvements in procurement and contract activity, underpinned by the recruitment of a senior team with the necessary commercial skills. The Commercial Function now includes a number of procurement, contract management and relationship specialists with a focus on identifying efficiencies and value for money, as well as managing strategically important and/or complex requirements. The function has been restructured in to five service areas (Professional Services, Events and Marketing, IT/ Digital, Business Process Outsourcing and Commercial Projects and Income Generation), led by commercial specialists.


With this new structure now in place, the Commercial Function has increased its focus on performance management, commercial capability and the continued development of robust governance and pro‑active risk management. The Function will continue to strengthen capability (both within the Commercial Team and across DIT), working with the Cabinet Office to develop a ‘Commercial Blueprint’ that will provide the roadmap to becoming a top performing Commercial Function, supported by all senior staff going through the Cabinet Office Commercial Assessment Centre in the first quarter of 2017‑18. The Finance and Commercial Functions have also worked together to implement a governance structure for projects and spend within DIT, detailing contract delegation limits and required stages for engagement with relevant business areas, corporate functions and senior level approvals. These work streams aim to deliver the recommendations made by the PAC.

5.5 Internal Audit Assurance

The Audit and Risk Assurance Committee (ARAC) agreed a programme for the Government Internal Audit Agency (GIAA) to carry out various audits during the year and to report to the Accounting Officer. The GIAA delivered 18 internal audit reports, of which 12 were at overseas posts and 6 were UK‑based. There were two additional UK‑based advisory assignments undertaken in the year. These reports covered a range of risk areas, including risk management and governance.

After the end of the financial year, the team from the GIAA presents a summary of key areas and an overall assurance opinion given for the year on the adequacy and effectiveness of DIT’s framework of governance, risk management and control necessary to support the achievement of the organisation’s objectives and the personal responsibilities for stewardship of government funds that rest with the Accounting Officer.

The GIAA opinion informs the context of this Governance Statement. This was presented to the ARAC for consideration on 16 May 2017. The overall opinion on the internal control environment of GIAA was moderate1.

5.6 Machinery of Government Changes

Assurance was provided by the Cabinet Office to DIT that all spend on GREAT prior to the transfer of function was proper and complied with all relevant spending and procurement controls. The assurance for Trade Policy Group prior to the transfer to DIT was provided through the BEIS Internal Audit Function. In 2016‑17 BEIS received a ‘limited’2 opinion over the controls operating through 2016‑17. DIT has reviewed the detailed findings and does not believe they materially impact DIT’s overall control environment in 2016‑17.

1 A moderate assurance opinion reflects that some improvements are required to enhance the adequacy and effectiveness of the framework of governance, risk management and control.2 A “limited” opinion reflects that there are significant weaknesses in the framework of governance, risk management and control such that it could be or could become inadequate and ineffective.

5.7 Ministerial Directions

During the period, no ministerial directions were given to DIT or its constituent parts prior to the creation of the Department in July 2016.

6. Summary/Conclusion

I have considered the evidence provided which formed the basis of this Annual Governance Statement along with the independent advice received from the Audit and Risk Assurance Committee and the GIAA, and can conclude that DIT has adequate governance and risk management systems, and we are committed to ensuring these remain compliant with best practice. I have also taken into account the Corporate Governance Code for Central Government Departments, and I am satisfied DIT is able to demonstrate compliance with the principles of the code.


Other Public Interest StatementsBasis of accounts and resources deployed

The accounts on pages 52 to 56 and 59 to 78 show DIT’s voted resource only. They have been prepared in accordance with directions given by HMT in pursuance of Section 5(2) of the Government Resources and Accounts Act 2000.

Going Concern

In common with other government departments, the future financing of DIT’s liabilities is to be met by future grants of supply and the application of future income, both of which are approved by Parliament on an annual basis. There is no reason to believe that future approvals will not be forthcoming and therefore it is considered appropriate to adopt a going concern basis for the preparation of these financial statements.

Charging Policy

DIT provides services for which it charges fees such as Overseas Market Introduction Service (OMIS) and costs related to events. Any such fees are set to comply with the cost allocation and charging requirements set out in HM Treasury guidance.

Whistleblowing Policy

The Civil Service Code sets out the values which all Civil Servants are expected to uphold. Further information on the code can be found on this link: www.gov.uk/government/publications/civil‑service‑code/the‑civil‑service‑code.

For raising any concerns regarding possible wrongdoing, our Whistleblowing policy provides guidance on raising legitimate and serious concerns without fear of reprisal or victimisation. For advice or to raise a concern, one of our Whistleblowing nominated officers can be contacted. The current Whistleblowing policy can be accessed by our staff on the DIT intranet.

Health and Safety

The Permanent Secretary and Executive Board of DIT are committed to providing a safe and healthy working environment for DIT staff and visitors wherever they are based. In the current year we have been operating under the legacy arrangements of our constituent parts. As a new Department we will, over the coming year, be reviewing and updating our existing arrangements to ensure we are managing our health and safety risks effectively. We will work and cooperate with other departments and stakeholders to achieve our aims and identify areas where we can improve. We also want to engage our people in identifying issues and developing solutions and will be setting up systems to achieve this.

Fraud Policy

DIT has its own fraud policy, which is regularly reviewed and updated. DIT also relies on controls operated by our share service providers to detect and identify fraud. Fraud is a key factor when determining DIT’s internal audit programme, for both UK and overseas audits.

Complaints to the Department and Parliamentary Ombudsman

During the year, DIT received no complaints that went to the Parliamentary Ombudsman. DIT is committed to providing a high quality, accessible and responsive service to businesses and the community, and takes all of its few complaints very


seriously. DIT provides all staff advice on how to deal with complaints, in line with Cabinet Office guidance and the Freedom of Information Act. Complaints are handled by the DIT Enquiry Unit. For further details, please contact the:

DIT Enquiry Unit on +44 (0)20 7215 5000 or email [email protected]

Sustainability

DIT is a new Department and in 2016‑17 utilised the estates of other government departments. Detailed sustainability data is not available for 2016‑17 but will be reported from 2017‑18 onwards. DIT is committed to ensuring its day‑to‑day operations are environmentally friendly and as the Department develops we will ensure this is something embedded into our ways of working, for example being digital by default and lowering the amount of paper we use. All DIT procurement follows government best practice, ensuring that sustainability is embedded in its tendering and contract management processes. As we develop our Facilities Management and take over control of our estate in 3 Whitehall Place and 55 Whitehall we will continue to look at how we can further ‘green’ our operations including reducing our waste to landfill and water consumption. Through better use of technology in the workplace we will also look to reduce our travel and therefore the amount of greenhouse gas emissions and domestic and international flights.

Auditors

These financial statements have been audited, under the Government Resources and Accounts Act 2000, by the Comptroller & Auditor General (C&AG), who is appointed under statute and reports to Parliament. The audit opinion is on pages 57 to 58. The notional cost to DIT of the external audit of its resource account by the NAO for the C&AG was £95k (£85k).

Data Handling and Information Security

As disclosed on page 34 of the Governance Statement no personal data related incidents have been reported to the Information Commissioner’s Office.


Remuneration and Staff ReportIntroduction

DIT became a separate legal entity and an employer in its own right on 9 November 2016. Staff costs are reported for the full year and prior year comparatives have been restated; this in accordance with the FReM.

For this report Senior Officials are defined as members of the DIT Departmental Board. Prior to the creation of the Department in July 2016 the Department operated under the legacy arrangements described in the Governance Statement.

Remuneration Policy

The remuneration of Senior Civil Servants is set by the Prime Minister, following independent advice from the Senior Salaries Review Body (SSRB).

The Review Body also periodically advises the Prime Minister on the pay and pensions of Members of Parliament and their allowances; on Peers’ allowances and on the pay, pensions and allowances of Ministers and others whose pay is determined by the Ministerial and Other Salaries Act 1975.

In reaching its recommendations, the Review Body was required to have regard to the following considerations;

• the need to recruit, retain and motivate suitably able and qualified people to exercise their different responsibilities;

• regional/local variations in labour markets and their effects on the recruitment and retention of staff;

• government policies for improving public services, including the requirement on departments to meet the output targets for the delivery of departmental services;

• the funds available to departments as set out in the Government’s departmental expenditure limits; and

• the Government’s inflation target.

The Review Body takes account of the evidence it receives about wider economic considerations and the affordability of its recommendations. Further information about the work of the Review Body can be found at www.gov.uk/

Senior Official Appointments

The Constitutional Reform and Governance Act 2010 requires Civil Service appointments to be made on merit, on the basis of fair and open competition. The Recruitment Principles published by the Civil Service Commission specify the circumstances when appointments may be made otherwise.

The officials covered by this report hold appointments which are open‑ended. Early termination, other than for misconduct, would result in the individual receiving compensation, as set out in the Civil Service Compensation Scheme.

Further information about the work of the Civil Service Commission can be found at: (www.civilservicecommission.org.uk).


Remuneration Report – MinistersThe following sections provide details of the remuneration and pension interests of the Ministers of the Department. (Full time equivalent figures for Ministers who worked part of the year can be found in brackets.)

Remuneration (salary, benefits in kind and pension benefits)

Ministers’ salaries and pension benefits in 2016‑17 were as follows:

2016‑17 2015‑16

MinistersSalary

(£)

Pensions benefits

(to nearest £1000)1

Total (to nearest

£1000)

Total (to nearest

£1000)


(from 13 July 2016)Secretary of State for International Trade and President of the Board of Trade

48,270(67,505)

13,000 61,000 –

The Rt Hon Greg Hands MP (from 15 July 2016)Minister of State for Trade and Investment

21,120(31,680)

6,000 27,000 –

Lord Price CVO2

(from 16 July 2016)Minister of State for Trade Policy

81,795 (115,257)

– 82,000 –

Mark Garnier MP

(from 17 July 2016)Parliamentary Under Secretary of state

15,879(22,375)

4,000 20,000 –

Baroness Anelay of St Johns DBE3

(from 12 March 2016 to 3 April 2016)Interim Minister of State for Trade and Investment

– – – –

Lord Maude of Horsham4

(from 11 May 2015 to 11 March 2016)Minister of State for Trade and Investment

– – – –

Lord Livingston of Parkhead5

(to 10 May 2015)Minister of State for Trade and Investment

– – – –

1 The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) less (the contributions made by the individual). The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights.2 The Minister elected not to receive any pension benefits.3 The Minister was paid by the FCO and DIT was recharged for this period. Please refer to FCO accounts for full details.4 The Minister was paid by the FCO. Please refer to FCO accounts for full details.5 The Minister elected not to draw a Ministerial salary or receive any pension benefits.

This table has been subject to audit.


Ministers’ pension and benefits entitlements in 2016‑17 were as follows:

Ministers

Accrued pension at

pension age as at 31/03/17

and related lump sum

£000

Real increase in pension

and related lump sum at

pension age 65

£000

CETV at31/03/17

£000

CETV at31/03/16

£000

Real increase in CETV

£000


(from 13 July 2016)Secretary of State for International Trade and President of the Board of Trade

0‑5 0‑2.5 79 65 7

The Rt Hon Greg Hands MP (from 15 July 2016)Minister of State for Trade and Investment

0‑5 0‑2.5 49 42 3

Lord Price CVO1

(from 16 July 2016)Minister of State for Trade Policy

– – – – –

Mark Garnier MP

(from 17 July 2016)Parliamentary Under Secretary of state

0‑5 0‑2.5 4 0 2

Baroness Anelay of St Johns DBE2

(from 12 March 2016 to 3 April 2016)Interim Minister of State for Trade and Investment

– – – – –

Lord Maude of Horsham2

(from 11 May 2015 to 11 March 2016)Minister of State for Trade and Investment

– – – – –

Lord Livingston of Parkhead3

(to 10 May 2015)Minister of State for Trade and Investment

– – – – –

1 The Minister does not contribute to the Parliamentary Contributory Pension Fund2 The Minister is or was paid by the FCO. Please refer to FCO accounts for full details.3 The Minister elected not to draw a Ministerial salary or receive any pension benefits.This table has been subject to audit.

Ministerial pensions

Pension benefits for Ministers are provided by the Parliamentary Contributory Pension Fund (PCPF). The scheme is made under statute and the rules are set out in the Ministers’ etc. Pension Scheme 2015, available at http://qna.files.parliament.uk/ws‑attachments/170890/original/PCPF%20MINISTERIAL%20SCHEME%20FINAL%20RULES.doc.

Those Ministers who are Members of Parliament may also accrue an MP’s pension under the PCPF (details of which are not included in this report). A new MP’s pension scheme was introduced from May 2015, although members who were MPs and aged 55 or older on 1 April 2013 have transitional protection to remain in the previous MP’s final salary pension scheme.

Benefits for Ministers are payable from State Pension age under the 2015 scheme. Pensions are re‑valued annually in line with Pensions Increase legislation both before and after retirement. The contribution rate from May 2015 is 11.1% and the accrual rate is 1.775% of pensionable earnings.

The figure shown for pension value includes the total pension payable to the member under both the pre‑ and post‑2015 Ministerial pension schemes.


The Cash Equivalent Transfer Value (CETV)

This is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the pension benefits they have accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total Ministerial service, not just their current appointment as a Minister. CETVs are calculated in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

The real increase in the value of the CETV

This is the element of the increase in accrued pension funded by the Exchequer. It excludes increases due to inflation and contributions paid by the Minister. It is worked out using common market valuation factors for the start and end of the period.


Remuneration Report – Senior OfficialsSenior Officials’ salaries and pension benefits in 2016‑17 were as follows, (full time equivalent figures for senior officials who worked part of the year can be found in brackets):

2016‑17

Senior OfficialsSalary£000

Bonus Payments

£000

Pension Benefits1

£000

Total remuneration

£000

Antonia Romeo2

(from 27 March 2017)Permanent Secretary and Accounting Officer

0‑5(160‑165)

– 1 0‑5

Sir Martin Donnelly3 (from 13 July 2016 to 26 March 2017)Permanent Secretary and Accounting Officer

120‑125(165‑170)

– 24 140‑145

Catherine Raines4

(Chief Executive of UKTI prior to 13 July 2016)Director General of International Trade and Investment

150‑155 20‑25 59 230‑235

John Alty(from 14 July 2016)Director General of International Trade Policy

85‑90(120‑125)

– 8 95‑100

Alison Currie(from 1 August 2016)Director of Corporate Services and Finance

85‑90(130‑135)

– 34 120‑125

Louis Taylor5

UKEF Chief Executive– – – –

1 The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights.

2 Antonia Romeo also held the position of Her Majesty’s Consul General in New York from 27 March 2017 to 30 June 2017. Antonia was asked to take up the role of DIT Permanent Secretary early to minimise the gap in accountability after her predecessor left and in the Consul General responsibilities.

3 Sir Martin Donnelly was Joint Permanent Secretary of BEIS and DIT from 13 July 2016 to 06 September 2016 and his salary for this period was paid and is also disclosed by BEIS. Sir Martin received a payment in lieu of notice of £41,647 in April 2017.

4 Catherine Raines was a senior official in UKTI and the role has transferred to DIT, as such, prior year comparatives are disclosed below.

Catherine Raines(from 7 September 2015)

85‑90 (150‑155)

– 16 100‑105

5 Louis Taylor is paid by UKEF. Please refer to UKEF accounts for full details. This table has been subject to audit.

The Senior Officials in this report are defined as members of the DIT Departmental Board. Prior to the creation of the Department in July 2016 the Department operated under the legacy arrangements described in the governance statement.


Salary

‘Salary’ includes gross salary; overtime; reserved rights to London weighting or London allowances; recruitment and retention allowances; private office allowances and any other allowance to the extent that it is subject to UK taxation. This report is based on accrued payments made by the Department and thus recorded in these accounts. In respect of Ministers in the House of Commons, departments bear only the cost of the additional Ministerial remuneration; the salary for their services as an MP (£74,962 from 1 April 2016, £74,000 from 8 May 2015 and £67,060 from 1 April 2014) and various allowances to which they are entitled are borne centrally. However, the arrangement for Ministers in the House of Lords is different in that they do not receive a salary but rather an additional remuneration, which cannot be quantified separately from their Ministerial salaries. This total remuneration, as well as the allowances to which they are entitled, is paid by the Department and is therefore shown in full in the figures above.

Benefits in Kind

The monetary value of benefits in kind covers any benefits provided by the Department and treated by HM Revenue and Customs as a taxable emolument. There are no benefits in kind paid to our Senior Management team.

Bonuses

Bonuses are based on performance levels attained and are made as part of the appraisal process. Bonuses relate to the performance in the year in which they become payable to the individual. The bonus reported in 2016‑17 relate to performance in 2015‑16.

Pay multiples

Reporting bodies are required to disclose the relationship between the remuneration of the highest‑paid director in their organisation and the median remuneration of the organisation’s workforce. This disclosure on pay multiples has been subject to audit.

The banded annualised remuneration of the highest‑paid director in Department for International Trade in the financial year 2016‑17 was £170,000‑£175,000 (2015‑16: £150,000‑£155,000). This was 5 times (2015‑16: 4 times) the median remuneration of DIT civil servants. The median remuneration was £35,409 (2015‑16: £38,106). In 2016‑17, no employee received remuneration in excess of the highest‑paid director (2015‑16: Nil).

Total remuneration includes salary, non‑consolidated performance‑related pay and benefits‑in‑kind. It does not include severance payments, employer pension contributions and the cash equivalent transfer value of pensions. The pay multiple disclosures have been subject to audit.

The table opposite shows the number of DIT SCS staff by pay range as at 31 March 2017. Bonuses are not included and salary ranges represent full‑time equivalent rates. These pay ranges cover those staff employed on open‑ended and fixed term contracts.

Pay range of SCS Total

£60,000 – £64,999 4

£65,000 – £69,999 14

£70,000 – £74,999 10

£75,000 – £79,999 5

£80,000 – £84,999 4

£85,000 – £89,999 7

£90,000 – £94,999 2

£95,000 – £99,999 –

£100,000 – £104,999 3

£105,000 – £109,999 1

£110,000 – £114,999 2

£115,000 – £119,999 3

£120,000 – £124,999 2

£125,000 – £129,999 –

£130,000 – £134,999 2

£135,000 – £139,999 –

£140,000 – £144,999 –

£145,000 – £149,999 –

£150,000 – £154,999 1

£155,000 – £159,999 –

£160,000 – £164,999 1

£165,000 – £169,999 1

Total 62

This table has been subject to audit.


Pension Benefits

Senior Officials’ pension and benefits entitlements in 2016‑17 were as follows:

Accrued pension at pension age as

at 31/03/17 and related lump sum

£000

Real increase in pension and

related lump sum at pension age

£000

CETV at31/03/17

£000

CETV at31/03/16

£000


£000

Antonia Romeo(from 27 March 2017)Permanent Secretary and Accounting Officer

25‑30 plus a lump sum of 65‑70

0‑2.5 371 371 –

Sir Martin Donnelly (from 13 July 2016 to 26 March 2017)Permanent Secretary and Accounting Officer

75‑80 plus a lump sum of

225‑230

0‑2.5 plus a lump sum of 2.5‑5

1,717 1,672 23

Catherine Raines1

(Chief Executive of UKTI prior to 13 July 2016)Director General of International Trade and Investment

10‑15 2.5‑5 177 131 32

John Alty(from 14 July 2016)Director General of Trade Policy

60‑65 plus a lump sum of

185‑190

0‑2.5 plus a lump sum of 0‑2.5

1,430 1,421 8

Alison Currie(from 1 August 2016)Director of Corporate Services and Finance

0‑5 0‑2.5 24 – 18

Louis Taylor2

UKEF Chief Executive and Accounting Officer

– – – – –

1 Catherine Raines was a senior official in UKTI and the role has transferred to DIT, as such, prior year comparatives are disclosed below.

Catherine Raines (from 7 September 2015) 5‑10 0‑2.5 98 112 36

2 Louis Taylor is paid by UKEF. Please refer to UKEF accounts for full details. This table has been subject to audit.


Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis with a normal pension age equal to the member’s State Pension Age (or 65 if higher). From that date all newly appointed civil servants and the majority of those already in service joined alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has four sections: 3 providing benefits on a final salary basis (classic, premium or classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis (nuvos) with a normal pension age of 65.

These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus, nuvos and alpha are increased annually in line with Pensions Increase legislation. Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 will switch into alpha sometime between 1 June 2015 and 1 February 2022. All members who switch to alpha have their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes.) Members joining from October 2002 may opt for either the appropriate

defined benefit arrangement or a ‘money purchase’ stakeholder pension with an employer contribution (partnership pension account).

Employee contributions are salary‑related and range between 3% and 8.05% of pensionable earnings for members of classic (and members of alpha who were members of classic immediately before joining alpha) and between 4.6% and 8.05% for members of premium, classic plus, nuvos and all other members of alpha. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum. classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. Benefits in alpha build up in a similar way to nuvos, except that the accrual rate in 2.32%. In all cases members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004.

The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member) into a stakeholder pension product chosen by the employee from a panel of providers. The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3%

of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally‑provided risk benefit cover (death in service and ill health retirement).

The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes, but note that part of that pension may be payable from different ages.)

Further details about the Civil Service pension arrangements can be found at the website www.civilservicepensionscheme.org.uk


http://www.civilservicepensionscheme.org.uk

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.


This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Fees Paid by DIT to Non‑Executive Board Members

Below are the annual fees plus expenses paid to the Non‑Executive Board Members of DIT. The total amounts due for the year to each person were in the following ranges (full time equivalent figures for non‑executives who served part of the year can be found in brackets):

2016‑17

Name £000

Julie Currie(from 17 November 2016)

5‑10(20‑25)

Noel Harwerth1

(from 1 January 2017)––

Dr Pippa Malmgren(from 17 November 2016)

5‑10(15‑20)

Simon Walker(from 17 November 2016)

5‑10(20‑25)

1 Noel Harwerth is paid by UKEF. Please refer to UKEF accounts for full details.This table has been subject to audit.

47

Numbers and Costs of People Engaged in Delivering DIT’s Objectives

The cost of people engaged in delivering DIT’s objectives is disclosed in the table below. DIT is recharged the full costs of all FCO staff overseas and at DIT HQ who spend more than 50% of their role on DIT objectives. We are also recharged for the full costs of MoD employees working in our Defence and Security Organisation (DSO).

Civil servants

£000

Temporary Staff£000

Ministers£000

Special Advisors

£000

FCO Locally

Engaged £000

2016‑17 £000

Restated 2015‑16

£000

Wages and Salaries 51,844 2,202 167 72 45,647 99,932 86,434

Social Security Costs 4,412 39 20 9 – 4,480 3,244

Other Pension Costs 9,833 113 – 16 – 9,962 9,262

Voluntary Exit Scheme 29 – – – – 29 3,791

Total 66,118 2,354 187 97 45,647 114,403 102,731 The costs of civil servants includes both DIT employees (£46.9m,) and the costs recharged for MoD employees (£3.1m) and FCO civil servants (£16.1m), working for DIT – either at overseas posts or London HQ. This table has been subject to audit.

Average number of persons employed

The average number of whole‑time equivalent persons employed during the year was as follows:

Number of staff 2016‑17 2015‑16

Civil servants 1,166 1,112

Temporary Staff 102 63

Ministers1 3 1

Special Advisors 1 –

FCO Locally Engaged 1,051 1,140

Total2 2,323 2,3161 The Minister of State for Trade and Investment position was previously held by joint Ministers of BEIS and FCO. 2 Total does not include UKEF staffThis table above has been subject to audit.


Sickness Absence

The average working days lost through recorded sickness absence per employee and staff year is disclosed below.

Sickness Absence1 Average Working Days Lost

2016 2.1

2015 3.21 The DIT staff year is in line with the calendar year.

Reporting of Civil Service and other compensation schemes – exit packages

There were no new exit packages in 2016‑17 for DIT staff (2015‑16: There were 69 exit packages which cost £3,790,9222). The £29,000 in note 3 of the accounts paid to civil servants in 2016‑17 includes residual costs of exit schemes agreed in 2015‑16.

Redundancy and other departure costs have been paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. Exit costs are accounted for in full in the year of departure. Where the department has agreed early retirements, the additional costs are met by the Department and not by the Civil Service pension scheme. Ill‑health retirement costs are met by the pension scheme and are not included in the table.

Consultancy

Consultancy spend in 2016‑17 was nil (2015‑16 £384k). Prior year cost related to business transformation of UKTI to the new strategy.

2 Full details of 2015‑16 exit packages can be found on pg 40 of the UKTI 2015‑16 Annual Report: www.gov.uk/government/publications/uk‑trade‑investment‑annual‑report‑and‑accounts‑2015‑to‑2016

49

Off‑Payroll Engagements

HM Treasury required all departments to publish details of off‑payroll engagements and the assurances sought that the correct tax is being paid.

Table 1: For all off‑payroll engagements as of 31 March 2017, for more than £220 per day and that last for longer than six months

No. of existing engagements as of 31 March 2017: 284

Of which

No. that have existed for less than one year at time of reporting. 159

No. that have existed for between one and two years at time of reporting. 60

No. that have existed for between two and three years at time of reporting. 37

No. that have existed for between three and four years at time of reporting. 14

No. that have existed for four or more years at time of reporting. 14

All existing off‑payroll engagements, outlined above, have at some point been subject to a risk based assessment as to whether assurance is required that the individual is paying the right amount of tax and, where necessary, assurance has been sought.

127

Table 2: For all new off‑payroll engagements, or those that reached six months in duration, between 1 April 2016 and 31 March 2017, for more than £220 per day and that last for longer than six months

No. of new engagements, or those that reached six months in duration, between 1 April 2016 and 31 March 2017.

111

No. of the above which include contractual clauses giving the Department the right to request assurance in relation to income tax and National Insurance obligations.

111

No. for whom assurance has been requested. 79

Of which

No. for whom assurance has been received. 34

No. for whom assurance has not been received1. 45

No. that have been terminated as a result of assurance not being received. ‑

Table 3: For any off‑payroll engagements of board members, and/or, senior officials with significant financial responsibility, between 1 April 2016 and 31 March 2017

No. of off‑payroll engagements of board members, and/or, senior officials with significant financial responsibility, during the financial year.

‑

No. of individuals that have been deemed “board members, and/or, senior officials with significant financial responsibility”, during the financial year. This figure should include both off‑payroll and on‑payroll engagements.

14

1 The deadline for the off payroll worker to provide the assurance is early July 2017

People StrategyOur people are at the heart of everything we deliver – their expertise is integral to shaping the UK as a great trading nation. We are committed to building on our strengths, growing our leadership at all levels, remaining true to our values and demonstrating excellent teamwork. We are proud of our diverse workforce and will attract, invest in, and retain the very best global talent. The development of our people was a priority in 2016‑17, to help us to be a confident and capable Department that drives growth, and is highly respected and proud of what it does.

Resourcing and Capability

As a new Department, recruitment and resourcing was a significant priority in 2016‑17. Since the Department was formed last July, the Department has grown in size and we continue to ensure that the Department has the people it needs, with the required capabilities.

Our status as a new Department provided an opportunity to design and build a new and innovative learning culture and framework. Combining the cross Whitehall Civil Service Learning programmes with our own technical learning, we have worked to develop a skills and capability offer to our people that is supported by a global learning platform, to meet the needs of our global workforce. We have focused on key cross‑departmental development priorities: building leadership capability, growing management skills, establishing professions and developing core skills.


Inclusion and Diversity

The Department for International Trade is a fully inclusive employer and is proud to offer the opportunities to those individuals from across the diversity and inclusion spectrum including those who are living with a disability. Our policies ensured that we offer the guaranteed interview scheme to those colleagues who meet the minimum criteria for recruitment purposes. We provided reasonable adjustments and assistance to staff with disabilities and/or long term health conditions to allow for colleagues to work in a comfortable environment and deliver effectively. We supported colleagues to access development programmes within the Department and across the wider Civil Service.

In 2016‑17, the Department set up 11 diversity networks including Disability, Mental Health, Women’s Group, LGBT+, People and Carers Group, EU Nationals, and Race and Ethnicity Groups. All groups now have a Senior Civil Service Champion. In December 2016 we launched our Diversity and Inclusion Committee under the chairmanship of the Director General of Trade Policy Group which meets on a monthly basis to test and support our network groups.

Workforce diversity % 2017

Female 45%

Male 55%

Workforce diversity – Senior Civil Servants % 2017

Female 42%

Male 58%

Leadership and Talent

In 2016‑17, the Department focused heavily on leadership development and delivered two successful events in November and December including a conference to our senior civil servants in DIT. We have also piloted leadership events focusing on inclusive leadership and leadership in action.

We have aligned ourselves to Civil Service talent activities and we have completed talent assessments for senior grades working with wider Civil Service on succession plans. By Autumn 2017, we will have completed talent assessments for the remaining senior grades. We have also invested in the establishment of early talent programmes in the Department and have significant numbers of Fast Streamers and Apprentices in our workforce.

Engaging with our People

We have a variety of communication channels to enable all individuals within DIT to have access to – and share – a range of information that is relevant not only to their role but also to the wider performance of DIT. These channels include: all staff and directorate meetings, weekly all staff and senior leadership electronic bulletins (including video), and the DIT intranet. Senior leadership are also actively encouraged to cascade and share information. The following table reports workforce gender diversity for DIT and the civil servants working for DIT.

51

Statement of Parliamentary SupplyIn addition to the primary statements prepared under IFRS, the Government Financial Reporting Manual (FReM) requires DIT to prepare a Statement of Parliamentary Supply (SoPS) and supporting notes to show resource outturn against the Supply Estimate presented to Parliament, in respect of each budgetary control limit. Prior year comparatives have been restated due to the machinery of government change and in accordance with the FReM.

The SoPS and related notes are subject to audit. Explanations of variances between Estimate and Outturn are given in the Financial Review on pages 20 to 22.

Summary of Resource and Capital Outturn 2016‑17

Estimate Outturn2016‑17

£000

Restated2015‑16

£000Outturn

VotedNon‑

Voted Total VotedNon‑

Voted Total

VotedOutturn

comparedwith

Estimatesaving/

(excess) Total

Departmental Expenditure Limit

– Resource 351,414 – 351,414 344,651 – 344,651 6,763 341,542

– Capital 9,842 – 9,842 6,304 – 6,304 3,538 1,869


– Resource 3,000 – 3,000 – – – 3,000 (351)

– Capital – – – – – – – –

Total Budget 364,256 – 364,256 350,955 – 350,955 13,301 343,060

Non‑Budget

– Resource – – – – – – – –

Total Non‑Budget – – – – – – – –

Total Resource 354,414 – 354,414 344,651 – 344,651 9,763 341,191

Total Capital 9,842 – 9,842 6,304 – 6,304 3,538 1,869

Total 364,256 – 364,256 350,955 – 350,955 13,301 343,060

Parliamentary Accountability and Audit Report


Net Cash Requirement 2016‑17


£000

Restated2015‑16

£000Outturn

Note

Outturn compared

withEstimate

saving/(excess) Total

Net Cash Requirement SOPS 2 362,178 341,503 20,675 334,296

Administration Costs 2016‑17


£000

Restated2015‑16

£000Outturn

Outturn compared

withEstimate

saving/(excess) Total

Administration Costs 35,282 29,695 5,587 26,836

Figures in the areas outlined in bold are voted totals subject to Parliamentary control. In addition, although not a separate voted limit, any breach of the administration budget will also result in an excess vote.

The Notes on pages 54 to 56 support the Statement of Parliamentary Supply.

53

SOPS 1 Net Outturn

SOPS 1.1 Analysis of Net Resource Outturn by Section

2016‑17£000

Restated2015‑16

£000

Outturn Estimate Outturn

Administration Programme

Gross IncomeNet

total Gross IncomeNet

total TotalNet

Total

Net total compared

to Estimate Total

Spending in Departmental Expenditure Limit

Voted:A. Trade development and promotion and inward investment 29,695 – 29,695 319,201 (4,245) 314,956 344,651 351,414 6,763 341,542


Voted:B. Trade development and promotion and inward investment – – – – – – – 3,000 3,000 (351)

Total 29,695 – 29,695 319,201 (4,245) 314,956 344,651 354,414 9,763 341,191

Notes to the Statement of Parliamentary Supply


SOPS 1.2 Analysis of Net Capital Outturn by Section

2016‑17£000

Restated2015‑16

£000

Outturn Estimate Outturn

Gross IncomeNet

total Net

Net total compared

to Estimate Total

Spending in Departmental Expenditure Limit

Voted: A. Trade development and promotion and inward investment: 6,304 – 6,304 9,842 3,538 1,869

Total 6,304 – 6,304 9,842 3,538 1,869

55

SOPS 2 Reconciliation of Net Resource Outturn to Net Cash Requirement

NoteEstimate

£000Outturn

£000

Net total outturn

compared with

estimate: savings (excess)

£000

Resource Outturn SOPS 1.1 354,414 344,651 9,763

Capital Outturn SOPS 1.2 9,842 6,304 3,538

Accruals to cash adjustments

Adjustments to remove non‑cash items:

Depreciation, amortisation and impairment 6, 7 (2,078) (2,136) 58

National Audit Office – Auditor's remuneration 4 – (95) 95

Adjustments to reflect movements in working balances:

Increase/(decrease) in receivables CF, 11 – 5,065 (5,065)

(Increase)/decrease in payables and items not passing through the Statement of Comprehensive Net Expenditure CF, 12 – (12,286) 12,286

Use of Provisions 13 – – –

Net cash requirements 362,178 341,503 20,675

Parliamentary Accountability disclosures Losses and Special Payments

During 2016‑17 DIT made one ex‑gratia payment amounting to less than £500 (2015‑16 Nil) and had no reportable losses (2015‑16 £400,000). This disclosure on losses and special payments has been subject to audit.

Remote Contingent Liability

DIT has no remote contingent liabilities (2015‑16 Nil). Contingent liabilities which are considered greater than remote and less than probable have been disclosed per IAS 37 in note 14 of the Financial Statements. This disclosure on remote contingent liabilities has been subject to audit.



I certify that I have audited the financial statements of the Department for International Trade for the year ended 31 March 2017 under the Government Resources and Accounts Act 2000. The financial statements comprise: the Department’s Statements of Comprehensive Net Expenditure, Financial Position, Cash Flows, Changes in Taxpayers’ Equity; and the related notes. These financial statements have been prepared under the accounting policies set out within them. I have also audited the Statement of Parliamentary Supply and the related notes, and the information in the Remuneration and Staff Report and the Parliamentary Accountability disclosures that is described in those reports and disclosures as having been audited.

Respective responsibilities of the Accounting Officer and auditor

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Accounting Officer is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. My responsibility is to audit, certify and report on the financial statements in accordance with the Government Resources and Accounts Act 2000. I conducted my audit in accordance with International Standards on Auditing (UK and Ireland). Those standards require me and my staff to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Department’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Accounting Officer; and the overall presentation of the financial statements. In addition I read all the financial and non‑financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by me in the course of performing the audit. If I become aware of any apparent material misstatements or inconsistencies I consider the implications for my certificate.

I am required to obtain evidence sufficient to give reasonable assurance that the Statement of Parliamentary Supply properly presents the outturn against voted Parliamentary control totals and that those totals have not been exceeded. The voted Parliamentary control totals are Departmental Expenditure Limits (Resource and Capital), Annually Managed Expenditure (Resource and Capital), Non‑Budget (Resource) and Net Cash Requirement. I am also required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

The Certificate and Report of the Comptroller and Auditor General to the House of Commons

57

Opinion on regularity

In my opinion, in all material respects:

• the Statement of Parliamentary Supply properly presents the outturn against voted Parliamentary control totals for the year ended 31 March 2017 and shows that those totals have not been exceeded; and

• the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Opinion on financial statements

In my opinion:

• the financial statements give a true and fair view of the state of the Department’s affairs as at 31 March 2017 and of the Department’s net operating cost for the year then ended; and

• the financial statements have been properly prepared in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions issued thereunder.

Opinion on other matters

In my opinion:

• the parts of the Remuneration and Staff Report and the Parliamentary Accountability disclosures to be audited have been properly prepared in accordance with HM Treasury directions made under the Government Resources and Accounts Act 2000; and

• the information given in the Performance Report and the Accountability Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which I report by exception

I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• adequate accounting records have not been kept or returns adequate for my audit have not been received from branches not visited by my staff; or

• the financial statements and the parts of the Remuneration and Staff Report and the Parliamentary Accountability disclosures to be audited are not in agreement with the accounting records and returns; or

• I have not received all of the information and explanations I require for my audit; or

• the Governance Statement does not reflect compliance with HM Treasury’s guidance.

Report

I have no observations to make on these financial statements.

Sir Amyas C E Morse 13 July 2017 Comptroller and Auditor General National Audit Office 157‑197 Buckingham Palace Road Victoria London SW1W 9SP


Statement of Comprehensive Net ExpenditureFor the Year Ended 31 March 2017

Note2016‑17

£000

Restated 2015‑16

£000

Staff costs 3 114,403 102,731

Outsourced activity 4 71,291 86,959

Recharges from other government departments 4 51,748 51,931

Promotion activity 4 27,524 17,840

Events 4 25,997 25,778

Grants 4 22,303 26,867

Other costs 4 35,630 35,587

Income 5 (4,245) (6,502)

Net Operating Cost 344,651 341,191

Net gain/(loss) on revaluation – –

Total Comprehensive Net Expenditure 344,651 341,191

Financial Statements

The Notes on pages 63 to 78 form part of these Accounts.

59

Statement of Financial PositionAs at 31 March 2017

Note2017 £000

Restated 2016 £000

Non‑current Assets

Property, plant and equipment 6 1,217 1,388

Intangible assets 7 6,743 2,404

Total non‑current assets 7,960 3,792

Current assets

Trade and other receivables 11 15,359 10,294

Cash and cash equivalents 10 17,347 5,849

Total current assets 32,706 16,143

Total assets 40,666 19,935

Current liabilities

Provision 13 – –

Trade and other payables 12 (93,509) (69,725)

Total current liabilities (93,509) (69,725)

Total assets less net current liabilities (52,843) (49,790)

Taxpayers Equity and Other Reserves

General fund (52,843) (49,790)

Total equity (52,843) (49,790)




Statement of Cash FlowsFor the Year Ended 31 March 2017

Note2017 £000

Restated 2016 £000

Cash flows from operating activities

Net operating cost (344,651) (341,191)

Adjustments for non‑cash transactions 4 2,231 2,172

(Increase)/Decrease in trade and other receivables 11 (5,065) 3,119

Increase/(Decrease) in trade payables 12 23,784 (11,877)

Use of provisions 13 – (351)

Less movements in payables relating to items not passing through the Statement of Comprehensive Net Expenditure (11,498) 15,701

Net cash outflows from operating activities (335,199) (332,427)

Cash flows from investing activities

Purchases of property, plant and equipment 6 (102) (1,038)

Purchases of intangible assets 7 (6,202) (831)

Net cash outflows from investing activities (6,304) (1,869)

Cash flows from financing activities

From the Consolidated Fund (Supply) – Current year SoCTE 358,850 318,595

Net financing 358,850 318,595

Net increase/(decrease) in cash and cash equivalents in the period before adjustment for receipts and payments to the Consolidated Fund 17,347 (15,701)

Payments of amounts due to the Consolidated Fund (5,849) –

Net increase/(decrease) in cash and cash equivalents in the period after adjustment for receipts and payments to the Consolidated Fund 11,498 (15,701)

Cash and cash equivalents at the beginning of the period 10 5,849 21,550

Cash and cash equivalents at the end of the period 10 17,347 5,849


61

Statement of Changes in Taxpayers’ EquityFor the Year Ended 31 March 2017

Note

Restated General

Fund £000

Balance at 1 April 2015 (Restated) (42,980)

Net Parliamentary Funding – drawn down CF 318,595

Net Parliamentary Funding – deemed CF 21,550

Supply (payable)/receivable adjustment 12 (5,849)

Comprehensive Net Expenditure for Year (341,191)

Non‑cash items

National Audit Office – Auditor's remuneration 4 85

Balance at 31 March 2016 (Restated) (49,790)

Net Parliamentary Funding – drawn down CF 358,850

Net Parliamentary Funding – deemed CF –

Supply (payable)/receivable adjustment 12 (17,347)

Comprehensive Net Expenditure for Year (344,651)

Non‑cash items


Balance at 31 March 2017 (52,843)



1. Statement of Accounting Policies

These financial statements have been prepared in accordance with the 2016‑17 Government Financial Reporting Manual (FReM), issued by HM Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRS) as adapted, or interpreted, for the public‑sector context. Where the FReM permits a choice of accounting policy, the accounting policy which is judged to be most appropriate to the particular circumstances of DIT, for the purpose of giving a true and fair view has been selected. The particular policies adopted by DIT are described below. They have been applied consistently in dealing with items that are considered material to the accounts.

In addition to the primary statements prepared under IFRS, the FReM also requires DIT to prepare additional primary statements, the Statement of Parliamentary Supply and supporting notes which show Outturn against Estimate in terms of the Net Resource Requirement and the Net Cash Requirement.

1.1 Accounting convention

These accounts have been prepared on a going concern basis under the historical cost convention modified to account for the fair value revaluation of property, plant and equipment, and intangible assets as described in paragraphs 1.8 to 1.11.

1.2 Basis of accounting

These accounts cover all activities for which the Accounting Officer of DIT has principal Accounting Officer (AO) responsibility. The Government announced the creation of DIT in July 2016. The new Department incorporates UKTI, Trade Policy Group from the former Department for Business Innovation and Skills and the GREAT Campaign from Cabinet Office.

Machinery of Government changes, which involve the transfer of functions between two or more parts of the public sector/government departments, are required to be accounted for using merger accounting principles where the transfer is between departmental groups within central government in accordance with the FReM. The operating results and cash flows of all functions transferred into the Department are included in these Accounts from the beginning of the financial year in which the transfer takes place. Where material the prior year comparatives are restated as appropriate, so that it appears that the entity has always existed in its present form. DIT has not presented a statement of financial position as at 1 April 2015 as the effect of adding TPG and GREAT to existing functions of UKTI is not material. The restatement at 1 April 2015 is however shown within note 17.

1.3 Estimates and Judgements

The preparation of DIT’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenditure. The estimates and associated assumptions are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The results of these factors form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Uncertainty about these assumptions and estimates could result in outcomes that require an adjustment to the carrying value of the asset or liability. Where applicable, these uncertainties are disclosed in the Notes to the Accounts.

Significant judgement areas include Incentive Payments. These estimates are based on year‑end export win and CDMS data. The data is verified before actual payments are made. Historically, these estimates and judgements have been materially accurate.

There were no material estimates or judgements made at 31 March 2017 that could result in outcomes that require a material adjustment to the carrying value of assets, liabilities, income or expenditure.

1.4 Operating Income

Operating income is income which relates directly to the operating activities of DIT and is measured at the fair value of consideration received or receivable. Income is only recognised once the work or service has been provided and principally comprises fees and charges for services provided to external customers.

Notes to the 2016‑17 Resource Accounts

63

1.5 Administration and Programme Income and Expenditure

The organisational support provided by the DIT corporate services functions, Ministerial Strategy Directorate and the policy work completed by TPG are classified as administration. All other business activities are considered front line activity and are, therefore, programme activity.

1.6 Pensions

Past and present employees of the Department are generally covered by the provisions of Civil Service pensions. Civil Service pensions are defined benefit plans, however, there is insufficient information at an individual employer level to allow DIT to account for it as such and instead it is treated as a defined contribution scheme in these accounts.

The Department recognises the expected cost of these elements on a systematic and rational basis over the period during which it benefits from employees’ services by payment to the Civil Service pension schemes of amounts calculated on an accruals basis. Liability for payment of future benefits is a charge on the Civil Service pension schemes.

Pension benefits to ministers are provided by the Parliamentary Contributory Pension Fund (PCPF). Further details are provided in the Remuneration Report.

The Department is recharged the cost of pension contributions payable for FCO civil servants who are working for the Department in the year and the full cost has been provided for in the accounts.

Some employees are members of defined contribution plans. A defined contribution plan is a post‑employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an employee benefit expense in the Statement of Comprehensive Net Expenditure in the periods during which services are rendered by employees.

1.7 Value Added Tax (VAT)

VAT is accounted for in the Accounts. Amounts are shown net of VAT except:

• Irrecoverable VAT is charged to the Statement of Comprehensive Net Expenditure, and included under the relevant expenditure category.

• Irrecoverable VAT on the purchase of an asset is included in additions.

The net amount due to, or from HM Revenue and Customs in respect of VAT is included within payables or receivables on the Statement of Financial Position.

1.8 Property, Plant and Equipment

In accordance with the FReM, DIT has opted to value property, plant and equipment on a depreciated historical cost basis, as a proxy for their current value in existing use. This method of valuation has been chosen because DIT has a large number of relatively small‑value items, with short useful lives.

DIT’s capitalisation threshold for property, plant and equipment is £1,000, except for furniture assets, where all expenditure in one financial year is pooled and capitalised, and IT hardware, where a pack of equipment purchased with a cost in excess of £1,000, is capitalised as one asset.

1.9 Depreciation

Property, plant and equipment are depreciated at rates calculated to write them down to their estimated residual value on a straight‑line basis over their estimated useful lives. Tangible assets are normally depreciated over the following periods:

Assets under construction

Not depreciated until assets are in use

IT assets Three to five years

Office machinery

Five years

Furniture, fixtures and fittings

Five years

1.10 Intangible Assets

Intangible assets are stated at the amortised historic cost as a proxy for fair value and are reviewed annually for impairment. The minimum level of capitalisation of an intangible asset is £1,000. This method of valuation has been chosen because the assets have no value in use.

Software licences are amortised on a straight‑line basis over the shorter of the term of the licence and the useful economic life (three to five years). Intangible assets are normally depreciated over the following periods:

Development costs

Not depreciated until assets are in use

Software licences Three to five years

Website Four to five years

IT assets Three to five years


1.11 Impairments

The carrying value of DIT’s assets is reviewed each Statement of Financial Position date to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amount is estimated in accordance with IAS 36.

An impairment loss is recognised whenever the recoverable amount of an asset or its cash‑generating unit is less than the carrying amount. Impairment losses are recognised in the Statement of Comprehensive Net Expenditure.

1.12 Trade and Other Receivables

Trade and other receivables are recognised initially at fair value, less any provision for impairment. A provision for impairment of trade receivables is established when there is evidence that DIT will not be able to recover all amounts due in accordance with contracts.

1.13 Trade and Other Payables

Trade and other payables are recognised at fair value, which represent liabilities for goods and services provided to DIT prior to the financial year end that are unpaid. Trade and other payables are non‑interest bearing and are usually paid within 10 working days, thus their carrying value approximates their fair value.

1.14 Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in hand. The carrying amount of these assets approximates their fair value.

1.15 Foreign Exchange

Transactions which are denominated in a foreign currency are translated into sterling at the exchange rate ruling on the date of the transaction. Current assets and liabilities denominated in foreign currency are translated into sterling at the date on which they are recorded in the accounts, on average no more than 30 days prior to the Statement of Financial Position date. DIT does not have the authority to undertake exchange rate risk management (hedging) and as a consequence all gains or losses on exchange differences are recognised directly in the Statement of Comprehensive Net Expenditure.

1.16 Impending Application of Newly Issued Accounting Standard Not Yet Effective

DIT provides disclosure that it has not yet applied a new accounting standard, and known or reasonably estimable information relevant to assessing the possible impact that the initial application of the new standard will have on the resource accounts is not available. DIT has also not early adopted any accounting standards. Also, there were no new standards issued for 2016‑17 and not applied which would materially affect the resource accounts.

65

2. Statement of Operating Cost by Business Group

Gross Income

2016‑17 £000

Net Gross Income

Restated 2015‑16

£000 Net

International Trade and Investment 264,454 (3,897) 260,557 268,948 (6,073) 262,875

Centrally Managed 43,534 – 43,534 48,165 – 48,165

Trade Policy Group 17,383 (307) 17,076 15,273 (276) 14,997

GREAT 4,023 (11) 4,012 3,111 (96) 3,015

Corporate Services & Ministerial Strategy 19,502 (30) 19,472 12,196 (57) 12,139

Total Comprehensive Net Expenditure 348,896 (4,245) 344,651 347,693 (6,502) 341,191

Departments are required to apply IFRS 8 Operating Segments. This requires Departments to identify their operating segments based on their main areas of activity reported to the Chief Operating Decision Maker (CODM).

DIT’s CODM is the Accounting Officer. She receives financial information at aggregate level as well as information on outcomes relating to five directorates groups; Corporate Services and Ministerial Strategy, Centrally Managed, International Trade and Investment, Trade Policy Group and GREAT. These are measured on the same basis as for financial reporting purposes in the Statement of Comprehensive Net Expenditure.

The primary activity of each segment is as follows:

• International Trade and Investment: Provides support for exporters and facilitates inward and outward investment.

• Centrally Managed: Recharges from the FCO for the use of overseas shared services and estates.

• GREAT: The programme team that runs the cross‑government campaign to promote trade, investment, tourism and study in the UK and helps businesses sell overseas.

• Trade Policy: Develops and negotiates free trade agreements and market access deals with non‑EU countries.

• Corporate Services & Ministerial Strategy: Provides corporate support, strategic oversight and supports Ministers in order to ensure that DIT has the capabilities to deliver the Government’s international trade policies.

The income and expenditure reported against reportable segments for 2015‑16 have been restated to reflect the changes in responsibilities arising from the Machinery of Government changes.

3. Staff Costs

2016‑17 £000

Restated2015‑16

£000

Wages and Salaries 99,932 86,434

Social Security Costs 4,480 3,244

Other Pension Costs 9,962 9,262

Voluntary Exit Scheme 29 3,791

Total 114,403 102,731

For further information on staff costs and numbers, please see the Remuneration and Staff Report on page 48.


4. Other Costs

2016‑17 £000

Restated 2015‑16

£000

Outsourced Trade Services 39,621 48,436

Outsourced Investment Services 21,405 32,839

Outsourced Programme Activity 10,265 5,684

FCO Platform Charge 43,534 48,165

BEIS Overhead Recharge 8,214 3,766

Promotion activity 27,524 17,840

Events 25,997 25,778

Grants 22,303 26,867

Travel and subsistence 13,927 13,424

Agency and Temporary Staff 6,438 3,837

IT expenditure 5,663 5,939

Training and other staff costs 2,967 2,559

Market Research and evaluation 1,277 993

Other costs 3,127 6,663

Non‑cash items

Depreciation 273 333

Amortisation 1,863 1,668

Impairment – 86


2,231 2,172

Total Other costs 234,493 244,962

5. Income

2016‑17 £000

Restated 2015‑16

£000

Fees and charges to external customers for Overseas Market Introduction Services (OMIS) 2,666 3,254

Income from Other Government Departments 104 –

Other income 1,475 3,248

Total Income 4,245 6,502

67

6. Property, Plant and Equipment

2016‑17

Information Technology

£000

Office Machinery

£000

Furniture, Fixtures and

Fittings £000

Total £000

Cost or valuation

At 1 April 2016 1,380 44 891 2,315

Additions 102 – – 102

Disposals (4) (26) – (30)

Impairment – – – –

Transfers – – – –

At 31 March 2017 1,478 18 891 2,387

Depreciation

At 1 April 2016 (515) (44) (368) (927)

Charge in year (95) – (178) (273)

Disposals 4 26 – 30



At 31 March 2017 (606) (18) (546) (1,170)

Carrying amount at 31 March 2017 872 – 345 1,217

Asset financing

Owned 872 – 345 1,217



2015‑16 Restated


£000

Office Machinery

£000

Furniture, Fixtures and

Fittings £000

Total £000

Cost or valuation

At 1 April 2015 433 47 820 1,300

Additions 967 – 71 1,038

Disposals (20) (3) – (23)



At 31 March 2016 1,380 44 891 2,315

Depreciation

At 1 April 2015 (295) (10) (226) (531)

Charge in year (154) (1) (178) (333)

Disposals 20 3 – 23

Impairment (86) – – (86)

Transfer – (36) 36 –

At 31 March 2016 (515) (44) (368) (927)


Asset financing

Owned 865 – 523 1,388


69

7. Intangible Assets

2016‑17

Development costs £000

Software licence

£000Website

£000


£000Total £000

Cost or valuation

At 1 April 2016 742 1,192 2,169 5,595 9,698

Additions 4,495 – – 1,707 6,202

Disposals – (1,186) (2,169) (51) (3,406)

Reclassifications (3,125) – 2,696 429 –

At 31 March 2017 2,112 6 2,696 7,680 12,494

Amortisation

At 1 April 2016 – (1,192) (2,156) (3,946) (7,294)

Charge in year – – (238) (1,625) (1,863)

Disposals – 1,186 2,169 51 3,406

At 31 March 2017 – (6) (225) (5,520) (5,751)

Carrying amount at 31 March 2017 2,112 – 2,471 2,160 6,743

Asset financing

Owned 2,112 – 2,471 2,160 6,743

Carrying amount at 31 March 2017 2,112 – 2,471 2,160 6,743


2015‑16 Restated

Development costs £000

Software licence

£000Website

£000


£000Total £000

Cost or valuation

At 1 April 2015 – 1,212 2,169 5,526 8,907

Additions 742 – – 89 831

Disposals – (20) – (20) (40)

Reclassifications – – – – –

At 31 March 2016 742 1,192 2,169 5,595 9,698

Amortisation

At 1 April 2015 – (941) (2,135) (2,590) (5,666)

Charge in year – (271) (21) (1,376) (1,668)

Disposals – 20 – 20 40

At 31 March 2016 – (1,192) (2,156) (3,946) (7,294)

Carrying amount at 31 March 2016 742 – 13 1,649 2,404

Asset financing

Owned 742 – 13 1,649 2,404

Carrying amount at 31 March 2016 742 – 13 1,649 2,404

71

8. Capital and other commitments

8.1 Capital commitments

As at 31 March 2017 DIT did not have any capital commitments (31 March 2016: Nil).

8.2 Other commitments

31 March 2017 £000

Restated 31 March 2016

£000

Total other commitments

Non‑cancellable contract Not later than one year 1,297 1,297

Later than one year and not later than five years 1,297

Later than five years – –

1,297 2,594

The Department has a non‑cancellable IT contract for the application development, service management and hosting for the Export Licensing website. This was signed by BEIS and transferred to DIT as part of the Machinery of Government changes disclosed in Note 17.

9. Financial Instruments

As the cash requirements of the Department are met through the Estimates process, financial instruments play a more limited role in creating and managing risk than would apply to a non‑public sector body of a similar size. The majority of financial instruments relate to contracts for non‑financial items in line with the Department’s expected purchase and usage requirements and the Department is therefore exposed to little credit, liquidity or market risk.

Due to the largely non‑trading nature of DIT’s activities and the way in which Government Departments are financed, DIT is not exposed to the degree of financial risk faced by business entities. Financial assets and liabilities are generated by day‑to‑day operational activities and are not held to change the risks facing DIT in undertaking its activities.


10. Cash and Cash Equivalents

31 March 2017 £000

31 March 2016 £000

Balance at 1 April 5,849 21,550

Net change in cash and cash equivalents 11,498 (15,701)

Balance 17,347 5,849

The following balances were held at:

Government banking service 17,347 5,849

Balance 17,347 5,849

11. Trade Receivables and Other Current Assets

31 March 2017 £000


£000

Amounts falling due within one year

Trade receivables 2,350 1,295

VAT 7,060 4,211

Other receivables 571 445

Prepayments and accrued income 5,378 4,343

Total 15,359 10,294

12. Trade Payables and Other Current Liabilities

31 March 2017 £000


£000

Amounts falling due within one year

Trade payables 13,194 4,811

FCO Accrual 28,434 21,294

Accruals 34,367 37,541

Deferred income 167 230

Amounts issued from the Consolidated Fund for Supply but not spent at year end 17,347 5,849

Total 93,509 69,725

73

13. Provisions

31 March 2017 £000

31 March 2016 £000

Balance as at 1 April – 351

Provided in the year – –

Provisions utilised in the year – (351)

Total – –

The 2015‑16 brought forward provision relates to contract incentive payments which materialised in 2014‑15 and was paid to the outsourced service provider in 2015‑16.

14. Contingent Liabilities

The Department has the following contingent liabilities for which the risk of crystallisation is considered greater than remote but is not thought probable. Amounts disclosed reflect the highest reasonable estimate of the possible liability. These are summarised by the nature and purpose of the contingent liability:

31 March 2017 £000

31 March 2016 £000

Quantifiable contingent liabilities disclosed under IAS 37

Paid in capital subscription for the Common Fund for Commodities (CFC)Government is committed to the payment of a subscription of £2.24m, in the form of Promissory Notes to be redeemed on request by the fund. 2,240 2,400

Callable capital subscription for CFCGovernment is committed to the payment of a subscription of £1.96m to the fund. 1,960 1,960

4,200 4,360

The Department has a contingent liability of £4.2m to the CFC; we are committed to pay should their commitments/liabilities exceed their available resources.


15. Related Party Transactions

No Minister, members of the DIT Board, key manager or other related party has undertaken any material transactions with DIT during the year.

Antonia Romeo’s husband is Managing Director of Oliver Wyman Americas. DIT had no transactions with Oliver Wyman Americas in 2016‑17.

DIT has had transactions with other Government Departments, central Government bodies or trading funds. The material transactions have been with the FCO, BEIS, the Ministry of Defence, Cabinet Office, Visit Britain and UK SBS.

16. Events after the Reporting Period

There have been no events after the reporting period and up to the date the accounts were authorised for issue requiring an adjustment to the financial statements. The Accounting Officer authorised these financial statements for issue on the date that they were certified by the Comptroller and Auditor General.

17. Machinery of Government (MoG) change

The Department for International Trade was created on 13 July 2016 and gained legal recognition as a department on 9 November 2016. The new Department integrated UK Trade & Investment with Trade Policy Group function from BEIS and the GREAT campaign from the Cabinet Office. Prior year comparatives have been restated to include these transferring functions of the Department as from 1 April 2016, with comparative information from 1 April 2015. The impact can be seen on pages 76 to 78.

75

Statement of Comprehensive Net ExpenditureFor the Year Ended 31 March 2016

UKTI £000

GREAT £000

Trade Policy Group

£000

Restated DIT

£000

Staff costs 95,322 604 6,805 102,731

Other costs 233,987 2,507 8,468 244,962

Income (6,130) (96) (276) (6,502)

Total Comprehensive Net Expenditure 323,179 3,015 14,997 341,191


Statement of Financial PositionAs at 31 March 2016

UKTI £000

GREAT £000

Trade Policy Group

£000

Restated DIT

£000

Non‑Current Assets

Property, plant and equipment 601 – 787 1,388

Intangible Assets 2,333 – 71 2,404

Current Assets

Trade and other receivables 6,703 47 3,544 10,294

Cash and cash equivalents 5,849 – – 5,849

Current Liabilities

Provision – – – –

Trade and other payables (68,232) (446) (1,047) (69,725)

Total assets less current liabilities (52,746) (399) 3,355 (49,790)


General Fund (52,746) (399) 3,355 (49,790)

Total equity (52,746) (399) 3,355 (49,790)

77

Statement of Financial PositionAs at 1 April 2015

UKTI £000

GREAT £000

Trade Policy Group

£000

Restated DIT

£000

Non‑Current Assets

Property, plant and equipment 762 – 7 769

Intangible Assets 3,241 – – 3,241

Current Assets

Trade and other receivables 9,054 – 4,359 13,413

Cash and cash equivalents 21,550 – – 21,550

Current Liabilities

Provision (351) – – (351)

Trade and other payables (74,159) (178) (7,265) (81,602)

Total assets less current liabilities (39,903) (178) (2,899) (42,980)


General Fund (39,903) (178) (2,899) (42,980)

Total equity (39,903) (178) (2,899) (42,980)


The Department continues to follow strictly the recommendations of the Committee on Standards in Public Life and Cabinet Office guidelines on handling sponsorship arrangements with the private sector

During 2016–17, DIT received the following private‑sector sponsorship (only sponsorship exceeding £5,000 for a single event is shown here).

Sponsorship table of amounts received during 2016‑17

Sponsor Amount (£) Event Note

Kazakhstan TV Non‑monetary estimated value 8,000 Astana Expo 2017

ICAEW 10,000 Astana Expo 2017

Ventola Projects Non‑monetary estimated value 10,000 Astana Expo 2017

First Magazine Ltd Non‑monetary estimated value 15,000 Astana Expo 2017

Sysco AV Non‑monetary estimated value 50,000 Astana Expo 2017

Vitol SA 200,000 Astana Expo 2017

Shell Kazakhstan BV 350,000 Astana Expo 2017

WNY Non‑monetary estimated value 495,000 Astana Expo 2017

AstraZeneca 17,614 Bio‑Investor Conference 2016

Investec 7,715 Brazilian Pension Fund Mission to the UK

British Airways 10,292 British Airways Sponsorship – Oscar Event

British Aerospace and Electronics Systems Pvt Ltd

30,342 British House

KBZ Group 5,279 Burma Trade and Investment Conference 2016

Supreme Group 5,390 Burma Trade and Investment Conference 2016

Prudential Holdings 10,262 Burma Trade and Investment Conference 2016

Pacific High Technology Services

10,349 Burma Trade and Investment Conference 2016

Kanbawza Group 21,002 Burma Trade and Investment Conference 2016

Business Link Japan 5,512 DIT Asset Management Seminar

UK Fashion and Textile Association

9,500 DIT Fashion Mission to Japan

AOK Events 10,000 Exporting is Great Latin America Roadshow

Farnborough International Ltd Non‑monetary estimated value 426,000 Farnborough International Airshow

Guiyang Government 6,233 Guiyang Big Data Summit and Expo



University of Manchester 15,698 Innovate UK

British Standards Institution 15,739 Innovate UK

Research Councils UK 60,000 Innovate UK

MBDA 5,000 Miedzynarodowy Salon Przemyslu Obronnego, Poland exhibition

Thales UK 5,000 Miedzynarodowy Salon Przemyslu Obronnego, Poland exhibition

Annex A Sector Sponsorship

79

Sponsor Amount (£) Event Note

AstraZeneca 22,883 Miscellaneous

Mosimann’s 7,597 Milan Expo 2015

Ogilvy Non‑monetary estimated value 8,330 Olympic Games Rio 2016

Jaguar Land Rover Non‑monetary estimated value 10,000 Olympic Games Rio 2016

Boots Non‑monetary estimated value 10,400 Olympic Games Rio 2016

IOASYS Ltd Non‑monetary estimated value 11,000 Olympic Games Rio 2016

BBC Non‑monetary estimated value 12,000 Olympic Games Rio 2016

Skol Non‑monetary estimated value 16,418 Olympic Games Rio 2016

PSP Logistics Non‑monetary estimated value 20,000 Olympic Games Rio 2016

Aggreko Non‑monetary estimated value 30,000 Olympic Games Rio 2016

Shell Kazakhstan BV 30,341 Olympic Games Rio 2016

Sage Non‑monetary estimated value 32,000 Olympic Games Rio 2016

Vitol Non‑monetary estimated value 48,000 Olympic Games Rio 2016

Diageo Non‑monetary estimated value 65,000 Olympic Games Rio 2016

Innovision Non‑monetary estimated value 175,000 Olympic Games Rio 2016

Financial Times Non‑monetary estimated value 270,000 Olympic Games Rio 2016

Al Rayan Bank Non‑monetary estimated value 2,000 Qatar Investment Conference 2017

IKON Gallery Non‑monetary estimated value 5,000 Qatar Investment Conference 2017

The Edge Pictures Non‑monetary estimated value 5,000 Qatar Investment Conference 2017

The Premier League Non‑monetary estimated value 7,500 Qatar Investment Conference 2017

Aston Martin Non‑monetary estimated value 12,500 Qatar Investment Conference 2017

Airbus Non‑monetary estimated value 15,000 Qatar Investment Conference 2017

Rolls Royce Non‑monetary estimated value 15,000 Qatar Investment Conference 2017

University of Birmingham Non‑monetary estimated value 40,000 Qatar Investment Conference 2017

Serco Group PLC 25,000 Qatar UK Business Investment Forum

Shakespeare Martineau 45,000 Qatar UK Business Investment Forum

Multiplex Middle East 50,000 Qatar UK Business Investment Forum

QinetiQ 6,000 Security and Policing Exhibition

ADS Group Ltd. Non‑monetary estimated value 30,000 Security and Policing Exhibition

Vodafone Mobile Service Ltd 10,595 Siat Expo 2017

Equiniti Ltd 5,278 Tech Summit

British Aerospace and Electronics Systems Pvt Ltd

8,637 Tech Summit

De La Rue Holdings Ltd 20,488 Tech Summit

Turner & Townsend Consultoria Limitada

8,441 UK‑Brazil – Investment & innovation

Vertu 11,445 UKTI QBP Beijing

Shell Brasil Petroleo Ltda 23,795 Miscellaneous


Admin

Administration budgets

Restated 2012‑13 Outturn

£000


£000


£000


£000

2016‑17 Outturn

£000

2017‑18 Plan £000

2018‑19 Plan £000

2019‑20 Plan £000

Spending in Administration budgets

Voted:A. Trade development and promotion and inward investment 47,494 42,115 20,191 26,836 29,695 71,430 68,530 67,430

Total Administration expenditure 47,494 42,115 20,191 26,836 29,695 71,430 68,530 67,430

Resource

Past, current and future departmental resource spending


£000


£000


£000


£000

2016‑17 Outturn

£000

2017‑18 Plan £000

2018‑19 Plan £000

2019‑20 Plan £000

Spending in Department Expenditure Limit (DEL)


Total Resource DEL 149,881 205,882 279,419 341,542 344,651 364,259 337,881 337,433

Spending in Annually Managed Expenditure (AME)

Voted:B. Trade development and promotion and inward investment – 355 (4) (351) – 3,000 3,000 3,000

Total Resource AME – 355 (4) (351) – 3,000 3,000 3,000

Total Resource 149,881 206,237 279,415 341,191 344,651 367,259 340,881 340,433

Annex B Core Tables

81

Capital

Past, current and future departmental resource spending


£000


£000


£000


£000

2016‑17 Outturn

£000

2017‑18 Plan £000

2018‑19 Plan £000

2019‑20 Plan £000

Spending in Department Expenditure Limit (DEL)


Total Capital DEL 1,557 2,511 1,619 1,869 6,304 6,660 3,930 3,721

Spending in Annually Managed Expenditure (AME)

Voted:B. Trade development and promotion and inward investment – – – – – – – –

Total Capital AME – – – – – – – –

Total Capital 1,557 2,511 1,619 1,869 6,304 6,660 3,930 3,721


83

The UK’s Department for International Trade (DIT) has overall responsibility for promoting UK trade across the world and attracting foreign investment to our economy. We are a specialised government body with responsibility for negotiating international trade policy, supporting business, as well as delivering an outward‑looking trade diplomacy strategy.

Legal disclaimer

Whereas every effort has been made to ensure that the information in this document is accurate, the Department for International Trade does not accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.

© 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 International Trade, Central Finance Team, 3 Whitehall Place, London, SW1A 2AW

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Annual Report and Accounts - gov.uk...Annual Report and Accounts 2016‑17 (for the year ended 31 March 2017) Accounts presented to the House of Commons pursuant to Section 6(4) of