Moj Resource Accounts 2010

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Presented to the House o Commonspursuant to section 6(4) o the Government Resources and Accounts Act 2000

Ministry o JusticeResource Accounts 2009-10(For the year ended 31 March 2010)

Ordered by the House o Commons to be printed 15 September 2010

HC 194 Price: 28.75LONDON: The Stationery O ce


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Ministry o Justice Resource Accounts 200910 1

Annual ReportScope

The Annual Report and Accounts report the results o the Ministry o Justice (MoJ), the ScotlandO ce and the Wales O ce or the year ended 31 March 2010.

Principal Activities

MoJ was created on 9 May 2007 to bring together, or the rst time, responsibility or the justicesystem the courts, prisons and probation services. It is responsible or upholding justice, rights anddemocracy and works to protect the public and reduce reo ending by providing a more e ective,transparent and responsive criminal justice system, with air and simple routes to civil and amily

justice in England and Wales.The Scotland O ce and Wales O ce are responsible or promoting the devolution settlement andrepresenting the interests o Scotland and Wales respectively within the UK Government. Theaccounts attached to this report refect their administrative unctions and include the block grantspayable to the Scottish Government and the Welsh Assembly Government.

In accordance with HM Treasury requirements, the core department results refect the activities oMoJ headquarters and associated o ces, and the Scotland O ce and Wales O ce.

Associated o ces are controlled and monitored by the MoJ. Whilst some report nancialper ormance in separate annual reports, only the O ce o the Legal Services Ombudsman (OLSO)and the O ce o the Legal Services Complaints Commissioner (OLSCC) prepare separate statutoryaccounts that are audited by the Comptroller and Auditor General.

The consolidated department results include, in addition, the MoJs our executive agencies whopublish their own separate accounts: the National O ender Management Service (NOMS), HerMajestys Courts Service (HMCS), the Tribunals Service and the O ce o the Public Guardian (OPG).Decisions relating to the day-to-day running o the agencies remain the responsibility o theirindividual Chie Executives.

NOMS accounts consolidate the results o the 34 Probation Boards and 8 Probation Trusts thatoperated during 2009-10. In accordance with Schedule 1, paragraph 17(4) o theCriminal Justice and Court Services Act 2000, the 34 Probation Boards also publish separate consolidated accounts asthe National Probation Service. All Probation Boards were replaced by Probation Trusts rom 1 April2010. There is no requirement to produce consolidated accounts or Probation Trusts separate tothe NOMS accounts.


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Ministry o Justice Resource Accounts 2009102

Business area Responsibility

Ministry o JusticeHeadquarters(MoJ HQ)

Responsible or supporting Ministers in policy, unding and regulatory unctions, as wellas providing key services to intra-departmental entities.

In 2009-10, headquarters included the O ce or Criminal Justice Re orm (OCJR) whichwas hosted by the MoJ and worked trilaterally with the three Criminal Justice Systemdepartments: the MoJ, the Home O ce, and the Attorney Generals O ce. AlthoughOCJR has now dissolved, the Justice Policy Group will maintain the trilateral relationshipto deliver a joined up approach to criminal justice re orm.

Executive Agencies and Other Bodies:

National O enderManagement Service(NOMS)

Responsible or the administration o correctional services in England and Wales, throughthe prison and probation systems.

The prison system exists to protect the public by keeping in custody o enders committedby the courts in England and Wales. It aims to do so by treating prisoners with humanityand helping them lead law-abiding and use ul lives in custody and a ter release.

Probation services are delivered through a local network o 34 Probation Boards and 8Trusts. From 1 April 2010, these bodies were merged and replaced by 35 Probation Trusts.

Her Majestys CourtsService (HMCS)

Responsible or the administration o the courts system, including Crown Courts,Magistrates Courts and Civil Courts, in England and Wales.

Tribunals Service Provides common administrative support to the main central government tribunals.

O ce o thePublic Guardian (OPG)

Supports and promotes decision making or those who lack capacity or would like to planor their uture, within the ramework o theMental Capacity Act 2005.

Associated O ces: Court Funds O ce

O cial Solicitor and Public Trustee

O ce o the Legal Services Ombudsman

O ce o the Legal Services Complaints Commissioner

HM Inspectorate o Court Administration

HM Inspectorate o Prisons

HM Inspectorate o Probation

Assessor or Compensation or Miscarriages o Justice

Administrative Justice and Tribunals Council

O ce o the Judge Advocate General

Judicial Appointments and Conduct Ombudsman

O ce or Judicial Complaints

Directorate o Judicial O ces or England and Wales (incorporating the Judicial O ce,the Judicial Communications O ce and the Judicial Studies Board)

Boundary Commission or England

Law Commission


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Entities within the accounting boundary o the Ministry o Justice

Scotland Responsibility

Scotland O ce Oversees the e ective operation o the devolution settlement in Scotland and represents

the interest o Scotland within the UK Government.O ce o the AdvocateGeneral or Scotland

Provides legal advice and services to the UK Government, particularly in relation toScottish law and the Scottish devolution settlement.

Wales Responsibility

Wales O ce Supports the Secretary o State in discharging his role o representing Wales in the UKGovernment, representing the UK Government in Wales and ensuring the smoothworking o the devolution settlement in Wales.


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Entities outside the accounting boundary o the Ministry o Justice

The MoJ has lead responsibility within central government or sponsorship o the ollowing entities:

Executive

Non-DepartmentalBodies (NDPBs)

Responsibility

Legal ServicesCommission (LSC)

Oversees the administration o legal aid in England and Wales. The Justice Secretary hasalso announced to Parliament that he accepts the options identi ed or changes to theadministration o legal aid and or the restructure o the LSC to become a new ExecutiveAgency o the MoJ. This is anticipated to take place in 2012-13.

Youth Justice Board orEngland and Wales (YJB)

Administers the youth justice system in England and Wales up to 31 March 2010. Thiswas done jointly with the Department or Education ( ormerly Department or Children,Schools and Families (DCSF)).

The Parole Board or

England and Wales

Works with its criminal justice partners to protect the public by risk assessing prisoners

to decide whether they can be sa ely released into the community.Criminal InjuriesCompensation Authority(CICA)

Administers the Criminal Injuries Compensation Scheme throughout England, Scotlandand Wales, paying compensation to eligible applicants who have been the victim o aviolent crime.

Criminal Cases ReviewCommission (CCRC)

Investigates possible miscarriages o justice in England, Wales and Northern Ireland.

In ormationCommissioners O ce(ICO)

Reports to Parliament on aspects o data protection and reedom o in ormation.

Judicial Appointments

Commission (JAC)

Selects judicial o ce holders on merit and independently o government through air

and open competition.Legal Services Board(LSB)

A new public body created by theLegal Services Act 2007 . The Board came into being on1 January 2009 and became ully operational on 1 January 2010. It oversees approvedregulators and licensing authorities in the legal sector such as the Solicitors RegulatoryAuthority and the Bar Standards Board.

O ce or LegalComplaints

A new organisation that will handle complaints about the legal pro ession, it is expectedto open towards the end o 2010. It will handle complaints about solicitors, barristers,patent attorneys and legal executives in England and Wales.

All nine executive Non-Departmental Public Bodies all outside the accounting boundary andprepare separate accounts that are audited by the Comptroller and Auditor General.

Advisory Non-Departmental Public Bodies (NDPBs) and other entities

The MoJ sponsors a number o advisory NDPBs and other bodies. Details o these can be ound at:

http://www.justice.gov.uk/about/organisationswesponsor.htm

Additionally, three sister Government departments - the Northern Ireland Court Service, HM LandRegistry and The National Archives - report to the Lord Chancellor and Secretary o State or Justice.Each o these has a separate Parliamentary Estimate and prepares separate accounts.


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The ollowing Ministers served in the Scotland O ce and Wales O ce during 2009 10:

Ministers Tenure

Rt Hon. Jim Murphy MP,Secretary o State or Scotland

Full year

Lord Davidson o Glen Clova QC,Advocate General or Scotland

Full year

Ann McKechin MP,Parliamentary Under Secretary or Scotland

Full year

Rt Hon. Paul Murphy MP,Secretary o State or Wales

To 5 June 2009

Rt Hon. Peter Hain MP,Secretary o State or Wales

From 5 June 2009

Wayne David MP,Parliamentary Under Secretary or Wales

Full Year

On 12 May 2010, a coalition government o Conservatives and Liberal Democrats was announced.

The ollowing Ministers were appointed and will be responsible or MoJ headquarters, associatedo ces and executive agencies:

Ministers

Rt Hon. Kenneth Clarke QC MP

Secretary o State and Lord ChancellorRt Hon. Lord McNallyMinister o State

Jonathan Djanogly MPParliamentary Under Secretary

Crispin Blunt MPParliamentary Under Secretary

Nick Herbert MPMinister o State (jointly with the Home O ce)


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The ollowing Ministers were appointed to serve in the Scotland O ce and Wales O ce:

Ministers

Rt Hon. Danny Alexander MPSecretary o State or Scotland (To 29 May 2010)

Rt Hon. Michael Moore MPSecretary o State or Scotland (From 29 May 2010)

Rt Hon. David Mundell MPParliamentary Under Secretary or Scotland

The Lord Wallace o Tankerness QCAdvocate General or Scotland

Rt Hon. Cheryl Gillan MPSecretary o State or Wales

Rt Hon. David Jones MPParliamentary Under Secretary or Wales

The Departmental Boards

The Corporate Management Board

Membership of the Board The membership o Corporate Management Board (CMB) during 2009-10 comprised:

Board Member Tenure

Sir Suma Chakrabarti,Permanent Secretary

Full year

Carolyn Downs,Deputy Permanent Secretary and Director General, Corporate Per ormance

To 5 March 2010

Rowena Collins-Rice,Director General, Democracy, Constitution and Law and Chie Legal Advisor

Full year

Helen Edwards CBE,Director General, Justice Policy

Full year

Peter Handcock CBE,Director General, Access to Justice

Full year

Marco Pierleoni,Director General, Finance and Commercial

To 31 January 2010

Ann Beasley CBE,Director General, Finance

From 1 February 2010

Phil Wheatley CB,Director General, National O ender Management Service

Full year

Jonathan Slater,Director General, Business Trans ormation

Full Year

Anne Bul ord,

Non-Executive Director and Chair o the Audit Committee

Full year

David MacLeod,Non-Executive Director

Full year


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Responsibilities of the Board The Corporate Management Board exists to protect and enhance the reputation o the MoJ. It doesso by providing direction and managing per ormance in policy and operational delivery in the MoJ.Its key role is to set the vision or MoJ, manage strategic challenges, determine resource allocations,deliver organisational capability and monitor per ormance.

The Board is a corporate body. It operates within a ramework o strategy and policy agreed withthe Secretary o State or Justice and Lord Chancellor. Its members take decisions collectively andnot as representatives o the business areas which they lead.

The Audit Committee

Membership:Membership o the Audit Committee comprised: Anne Bul ord (Chair o the Committee and Non-Executive Director o the Corporate Management Board) and three independent non-executives,

Jane Tozer OBE, Francis Dobbyn and Mike Hawker. James Turners membership o the committeeceased on 31 July 2009 and ollowing a restructure o the membership Francis Dobbyn and MikeHawker joined the committee in October 2009.

Responsibilities:The Corporate Audit Committee is an advisory body. It supports the Permanent Secretary, asPrincipal Accounting O cer, and the CMB in their responsibilities or issues o risk, control andgovernance by reviewing the comprehensiveness, reliability and integrity o assurancesunderpinning the system o internal control and risk management. The terms o re erence or theCommittee are in ormed by the guidance set out in theTreasury Audit Committee Handbook or Audit Committees in Central Government bodies.

The Corporate Audit Committee advises the Principal Accounting O cer and CMB on the:

processes or risk management, control and governance and the Statement on Internal Control;y

accounting policies and accounts or the MoJ;y

planned activity and results o both internal audit and external audit;y

adequacy o management responses to issues identi ed by audit activity including externalyaudits management letter;

assurances relating to the MoJs corporate governance requirements; andy

anti- raud policies, whistle blowing processes, and arrangements or special investigation.y

Senior Management

The Permanent Secretary is appointed by the Prime Minister or an inde nite period under theterms o the Senior Civil Service contract. The other members o the Corporate Management Boardare appointed by the Permanent Secretary. These appointments are also or an inde nite periodwith the exception o one board member who le t the organisation during the year. The rules otermination or all o cial level members o both boards are set out in Chapter 11 o theCivil ServiceManagement Code.


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The Scotland O ce and the Wales O ce

The Scotland O ce and the Wales O ce retained their own separate Heads o Department andAccounting O cers throughout 2009-10. Both reported directly to their respective Ministers.

Board Member Tenure

Alisdair McIntosh,Head o the Scotland O ce

Full year

Alan Cogbill,Head o the Wales O ce

To 30 September 2009

Fiona Adams-Jones,Head o the Wales O ce

From 1 October 2009

David Crawley,Non-Executive Director and Audit Committee Chair, Wales O ce

Full year

Ian Summers,Non-Executive Director, Wales O ce

Full year


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The Ministry o Justices Relationship with its Non-Departmental Public Bodies

Throughout 2009-10 the MoJ sponsored nine executive Non-Departmental Public Bodies (NDPBs)as outlined on page 4. Each NDPB is a special purpose vehicle which plays a key role in the deliveryo MoJs objectives. The MoJ is committed to the maintenance o sound working relationships withall nine bodies which are managed through the ollowing mechanisms:

Each NDPB has a Sponsor Unit in MoJ headquarters which is responsible or general oversight oythe NDPB and reporting its per ormance to the Treasury. Sponsor Units meet regularly with eachNDPB, provide advice and support, approve strategy, nancial and delivery plans and monitoroperational and nancial per ormance.

The purpose o the NDPB, its governance and accountability arrangements and the respectiveymanagement and nancial responsibilities o the NDPB and MoJ are ormalised in a FrameworkAgreement, a Financial Memorandum and a Management Statement which are agreed with theSponsor Unit.

The Chie Executive and Accounting O cer o each NDPB, together with the Sponsor Unit,yadvises Ministers and the MoJ Permanent Secretary (in his role as Departmental AccountingO cer) on the strategic direction o the NDPB in the context o wider departmental and crossgovernment objectives.

The per ormance o each NDPB in supporting the delivery o Ministers strategy and policyypriorities are reported regularly to the MoJ throughout the year and reviewed, usually quarterly,by the MoJ Permanent Secretary with the Chie Executive and, where applicable, the Chair o theNDPB and senior departmental sponsors.

NDPBs are unded by MoJ through grant-in-aid. The Youth Justice Board also receives ay

signi cant contribution rom the Department or Education ( ormerly Department or Children,Schools and Families).

The Government announced in its July 2007 Green Papery The Governance o Britainthat it wouldsimpli y its nancial reporting to Parliament, ensuring that it reports in a more consistent

ashion, in line with scal rules, at three stages in the process on plans, Estimates andexpenditure outturns. The Clear Line o Sight Project has been set up to meet this objective. Itinvolves consolidating NDPBs into departmental accounts in 2011-12. This will not change anyo the undamental relationships between the MoJ and its NDPBs. NDPBs will continue to beseparate corporate entities with statutory responsibilities.


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Management CommentaryThe central MoJ spent 9.8 billion against Request or Resources 1 (R R1) within ParliamentarySupply Estimates (Spring Supplementary Estimate) - see page 53. The use o these resources isreported in the Consolidated Statement o Operating Costs by Departmental Aims and Objectiveson page 63 o these accounts. Aligning with the our main business groups, the DepartmentalStrategic Objectives or 2009-10 are to:

strengthen democracy, rights and responsibilitiesy

deliver air and simple routes to civil and amily justicey

protect the public and reduce reo endingy

ensure a more e ective, transparent and responsive criminal justice system or victims andythe public

TheComprehensive Spending Review 2007 set Public Service Agreements (PSAs) or the key priorityoutcomes that the Government wants to achieve in the period 2008-11. From 2009-10, all PSAtargets are now government-wide and cross departmental boundaries.

The aim o the Scotland O ce is to support the Secretary o State or Scotland in promoting thedevolution settlement and Scottish interests in Parliament. Resources o 26.9 billion was spentunder Request or Resources 2 (R R2), being primarily a grant to the Scottish Consolidated Fund.

Likewise, the Wales O ces aim is to support the Secretary o State or Wales in promoting Welshinterests and ensuring the smooth operation o the devolution settlement in Wales. Resources o13.0 billion were spent against Request or Resources 3 (R R3), being primarily a grant to theWelsh Consolidated Fund.

Expenditure or the Scotland and Wales O ces are summarised, by objective, on pages 64 and 65.

The MoJ as a whole, across all three Requests or Resources, was responsible or 49.8 billion o netpublic spending in the nancial year a ter taking account o income appropriated in aid o 1.1 billion(see page 53).


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Financial Per ormance

Parliament votes unds to departments on three occasions during the year by means o aMainEstimateat the start o the year, aWinter Supplementary Estimatein November and aSpringSupplementary Estimatein January. The MoJ Estimate consists o three separate Requests orResources.

Request or Resource 1 (R R1): To promote the development o a modern, air, cost e ectiveand e cient system o justice or all

Movements in Estimate provision during 2008-09: At the start o the year the MoJ was voted9,180m in itsMain Estimateunder R R 1. By the nalSpring Supplementary Estimate, this hadincreased to 10,344m due to the ollowing main reasons:

600m to cover the devaluation o the National O ender Management Service (NOMS) estate,y220m to cover the devaluation o the HM Courts Service (HMCS) estate, 39m or theimpairment o the Supreme Court Building, Middlesex Guildhall and 35m or extra provisionsrequired or the Probation Service Pension Scheme. All o these amounts are non-cash.

A reserve claim o 34m resource and 33m capital near cash in relation to the prison capacityyprogramme.

A 15m resource DEL budget increase to cover the e ects o the Implementation oyInternational Financial Reporting Standards (IFRS) on the MoJ.

A trans er o 15m rom the Home O ce to cover accommodation costs ollowing theyMachinery o Government Change in 2007 which trans erred ormer Home O ce unctions toMoJ.

7m or the work orce modernisation programme, unded by past underspends under the EndyYear Flexibility arrangements.


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Explanation or variances between Estimate and Net Resource Outturn or R R1:

Overall there was an underspend o 4.9%/512m on the R R 1 Estimate provision o 10.3 billion.Note 3 to the accounts provides a breakdown o this position or each subhead in the Estimate. Thereasons or major variances in excess o both 4m and 5% are set out below:

Policy, Corporate Services and associated o ces (subhead A)

Spending in DepartmentExpenditure Limits

Outturn Estimate (Overspend)/underspend

Percentage o Estimate

000 000 000 %

A Policy, CorporateServices andassociated o ces

462,579 560,973 98,394 17.5

The underspend o 98.4m/17.5% is due to e ciency and value or money savings made in year orestates, in ormation technology and communications and human resources costs. The merging olocal IT and estates unctions in the centre o the department have generated savings in operatingcosts. In particular, there has been a reduction in the number o contract sta employed and in theuse o consultants.

Her Majestys Courts Service (HMCS) (subhead B)




000 000 000 %

B HM Courts Service 686,157 851,948 165,791 19.5

Overall, HMCS underspent by 165.8m/19.5%. The main reason or this is that there was a decreasein the pension trans er de cit provision o 163m (provision write back o 184m o set by interestcharges o 21m in note 25). The provision represents the estimated uture liabilities associatedwith the trans er o approximately 8,000 Magistrates Court Committees sta to HMCS and themovement o their pensions rom the Local Government Pension Scheme (LGPS) to the PrincipalCivil Service Pension Scheme. The valuation o the liability refects the market value o the assets(gilts and securities) underpinning the LGPS. Improved market conditions caused the asset values torise and the net liability to all to a greater extent than was anticipated in the Estimate. This is anon-cash movement.

In addition, actual income was 612m compared to a budget o 676m in the Estimate. This refectslower than estimated volumes o ee generating business, especially in Family proceedings.


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O ce o the Public Guardian (subhead C)




000 000 000 %

C O ce o the PublicGuardian

5,909 1,702 (4,207) -247.2

The overspend o 4.2m/247% against an Estimate o 1.7m is due to two main reasons. Anincrease in ee remissions and exemptions rom 10.8% o ee income in 2008-09 to 14.6% in 2009-10 increased net costs by 1.4m. This change refects the O ce o Public Guardians commitmentto communicate its ee exemptions and remissions policy in line with the objective o creatingbetter access to justice or citizens. In addition, a provision o 2m has been made or dilapidationsto cover the cost o restoring leasehold properties to their original state when vacated. This is a non-cash charge in 2009-10.

Central Funds (subhead D)




000 000 000 %

D Costs rom CentralFunds

88,439 94,000 5,561 5.9

The 5.6m/5.9% underspend against the Central Funds budget o 94m refects the e ects o theintroduction o the Eighth Amendment o theCriminal Procedure Rulesin October 2009 which limitthe costs that can be claimed against Central Funds.

Criminal Justice Re orm (subhead F)




000 000 000 %F Criminal Justice

Re orm115,498 148,846 33,348 22.4

The underspend o 33.3m/22.4% relates to a contribution rom the Department or Education( ormerly Department or Children, Schools and Families) o 38m to the costs o the Youth JusticeBoard. This was not actored into the Estimate provision or subhead F and is partly o set by thepayment o 20m more grant-in-aid to the Youth Justice Board than budgeted or in the Estimateon subhead P.


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Legal Services Commission (subhead I)



Percentage oEstimate

000 000 000 %

I Legal ServicesCommission:Administration

131,650 139,600 7,950 5.7

The underspend o 7.9m/5.7% against Estimate or the administration costs o the Legal ServicesCommission relates mainly to slippage in the implementation o their IT Trans ormation andDelivery Trans ormation Programmes.

Annually Managed Expenditure (subheads W and X)

Spending inAnnually ManagedExpenditure


Percentage oEstimate

000 000 000 %

W HMCS revaluation /impairment AME

187,496 220,000 32,504 14.8

X NOMS revaluationimpairment AME

525,054 600,000 74,946 12.5

The AME provision or HMCS on subhead W and NOMS on subhead X relates to the estimatedreduction in value o the courts and prison estates respectively, arising rom pro essional valuationso property or the application o property speci c indices. Such movements are, by their nature,di cult to predict precisely in advance. Property values did not all to the extent predicted, givingrise to non-cash underspends in both cases.

Request or Resource 2 (R R2): Overseeing the e ective operation o the devolutionsettlement in Scotland and representing the interests o Scotland in the UK government

Net resource outturn or R R2 was within 1% o the Estimate within an underspend o 235m,mainly in respect o the grant payable to the Scottish Consolidated Fund to und the devolvedadministration in Scotland. The grant is payable on demand to the Scottish Government up to themaximum amount voted by the UK Parliament.

Request or Resource 3 (R R3): To support the Secretary o State in discharging his role orepresenting Wales in the UK Government and ensuring the smooth working o the devolutionsettlement in Wales

Net resource outturn or R R3 was within 1% o the Estimate with an underspend o 121m, mainlyin respect o the grant payable to the Welsh Consolidated Fund to und the devolved administration

in Wales. The grant is payable on demand to the Welsh Assembly Government up to the maximumamount voted by the UK Parliament.


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Reconciliation o resource expenditure between Estimate, Accounts and Budgets

The adjustment or resource consumption o Non-Departmental Public Bodies is based on the latestavailable in ormation. The Resource Budget outturn shown above is there ore subject to change.

2009-10Total

000

Net Resource Outturn (Estimates) 49,780,627

Adjustments to remove:

Provision voted or earlier years

Adjustments to additionally include:

Non-voted expenditure in the OCS 239,641

Consolidated Fund Extra Receipts in the OCS (5,200)

Non-supply adjustment (Income)/Expenditure (27,279)

(Pro t)/Loss on disposal o assets (7,159)

Net Operating Cost (Accounts) 49,980,630

Adjustments to remove:

Gains/(losses) rom sale o capital assests 7,159

Capital grants (to local authorities) (3,511)

Voted expenditure outside the budget (39,934,904)

Adjustments to additionally include:

Resource consumption o Non Departmental Public Bodies (275,982)

Resource Budget Outturn (Budget) 9,773,392

o which:

Departmental Expenditure Limits (DEL) 9,021,642Annually Managed Expenditure (AME) 751,750

9,773,392

The adjustment or resource consumption o Non-Departmental Public Bodies is based on the latestavailable in ormation. The Resource Budget outturn shown above is there ore subject to change.


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Review o activities during 2009-10Capability Review: During the MoJs Capability Review stock-take in July 2009, it was noted by thereview team that progress had been made in a number o areas. In particular:

Sta awareness o the overarching purpose o the MoJ had increased;y

The Management Board was working more e ectively as a corporate leadership team;y

Good progress was made in enhancing the analytical capability o the MoJ; andy

There were signs that a stronger culture o sta per ormance management was developing.y

However, the review team noted that a sustained e ort was required to improve the MoJsymanagement in ormation in order to make resource allocation and prioritisation decisions, andthere ore Board level leadership was assigned to this task. It was also noted that clarity wasrequired in the governance model or Arms Length Bodies and or the relationship to beappropriately tailored to the circumstance o each individual case. Finally, it was observed thattwo years a ter the MoJ was created, sta and stakeholders will be looking or evidence that theMoJ dividend is being achieved.

Trans orming Justice: Ten trans ormational programmes were identi ed and are beingdeveloped under the Trans orming Justice agenda:

Incentives and accountability or preventing o ending and re-o endingy

Diversion into alternative civil justice servicesy

New responses to crimey

Public engagementy

A better Criminal Justice System or the publicy

Headquarters t or the uturey

Shared servicesy

Estates trans ormationy

Management in ormationy

Engagement to deliver - employee engagement.y

Legal Aid Means Testing:The MoJ began the introduction o legal aid Means Testing in the CrownCourt. This joint work between the MoJ, HMCS and the Legal Services Commission sees ve CrownCourt centres; Brad ord, Preston, Black riars, Norwich, and Swansea and their 23 committingMagistrates Courts adopting a system which will help sustain the Legal Aid budget by allowingresources to be targeted at those de endants most in need. The current magistrates schemeensures that i a de endant has the means to do so they will be required to pay or their ownde ence. Every de endant that is committed, sent or trans erred or trial to the Crown Court and

applies or legal aid will be granted it, but those with su ciently high disposable incomes or capitaland equity will be required to contribute towards their de ence costs.


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Rede ning Justice: The National Victims Service was created in January 2010. It will provideconsistent levels o support to anyone who has been a victim o crime and who wants assistance. Ivictims need help, it will be there or them.

The Political Parties and Elections Act 2009, which received Royal Assent on 21 July 2009,

implements re orms to the powers and governance o the Electoral Commission to help make it amore e ective regulator o political unding and makes a number o other re orms to the rameworkor political donations and spending to increase the transparency and e ectiveness o the regime.

Parliamentary Standards Bill: In response to public concern ollowing the publication o MPsexpenses, the Parliamentary Standards Billwas introduced in July 2009 and received Royal Assent on20 July 2009. The Act allows or the establishment o an Independent Authority to undertake thescrutiny and payment o MPs expenses, and the authority was established and became operationalin January 2010. MoJ set up the Independent Parliamentary Standards Authority (IPSA) which nowoperates as an independent Supply unded organisation.

Court IT Systems: During 2009-10 the MoJ continued the modernisation o the courts IT systems,which will improve the administration o civil and amily cases. The upgraded systems have alreadybeen implemented in 39 county courts and 28 amily courts, with urther courts being modernisedthroughout 2010. A new IT system has also been introduced into the Court Funds O ce to helpmanage the unds held or clients, most o whom are vulnerable.

The rst tribunal multi-hearing centre was launched in East London. The centre operates acrossmultiple tribunal jurisdictions ( or example, employment, asylum, criminal injuries).

The Coroners and Justice Bill received Royal Assent in November 2009 and the implementation

programme, expected to be completed by April 2012, is under way. The legislation includes apackage o re orms to the coroner system or England and Wales. In particular, it includes theestablishment o a new Chie Coroner, expected to be appointed during 2010, and measures toimprove the experience o those bereaved people who come into contact with the system, such asproviding rights o appeal against coroners decisions and setting out the general standards oservice they can expect to receive.

O ender Employment:The MoJ and the Department o Work and Pensions completed a jointreview on employment support or o enders. The review identi ed a series o connected re ormsaimed at improving rontline collaboration between Jobcentre Plus and NOMS. These includesupport and guidance to promote joint working and data sharing, to clari y roles and responsibilitiesand to ensure better communication; introducing designated o cers within Jobcentre Plus andprobation services to enable more e ective working across the two agencies; closer working in thecommissioning o interventions and employer engagement; and introducing a shared system oper ormance management to monitor the impact o these changes on better employmentoutcomes or o enders as part o our broader e orts to reduce re-o ending.

Probation Trusts: Parliament has been noti ed that the remaining 34 Probation Boards will acquireTrust status and that there will be a rationalisation o probation bodies rom 42 to 35. The 35 Trustswill deliver probation services in England and Wales. Compared to Boards, Trusts have greaterindependence to ocus their work on the needs o local communities.


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The Advisory Panel on Judicial Diversity was established in April 2009 to make recommendationson how to achieve swi t and sustained progress to a more diverse judiciary. In its report the Panel,chaired by Baroness Neuberger, made over 50 recommendations, including a change o ocus rom judicial appointments to the development o judicial careers. A review o the uture o the JudicialAppointments Commission was subsequently announced.

Looking Forward

HMCS/Tribunals: The MoJ will be merging Her Majestys Courts Service and the Tribunals Serviceinto a single organisation. The new organisation will acilitate the building o a uni ed judicial amilyin England and Wales and achieve savings through joint administration and shared hearing venues.

Legal Services Commission: In response to Sir Ian Magees review into the delivery o legal aid, theLegal Services Commission is to become an executive agency o the MoJ. The change in status willsee a new and stronger relationship between the MoJ and the Legal Services Commission and

tighter nancial controls over the 2.1 billion budget. This will ensure the budget is delivering bestvalue or money and, most importantly, that the most vulnerable people in society continue to getthe legal help they need.

Legal Aid Re orms:The delivery o criminal de ence services will be restructured by moving to asmaller number o large contracts which will include Crown Court work. The restructuring will movethe legal aid budget onto a more sustainable ooting, helping to deliver savings or the taxpayerwhile ensuring suppliers remain pro table.

Appointment o Victims Commissioner: Louise Casey has been appointed the VictimsCommissioner. Louise Casey will build on the work conducted by Victims Champion, Sara Payne,who over the course o the last year sought the views o victims and witnesses across England andWales and brought their experiences and thoughts o the criminal justice system straight to theheart o government.

The Freedom o In ormation Act,will be extended to cover our more public bodies and increasethe publics right to access in ormation. The bodies covered by the change are: the Association oChie Police O cers (ACPO), the Financial Ombudsman Service (FOS), the Universities and CollegesAdmissions Service (UCAS) and Academy Trusts the bodies responsible or Academy Schools. Anextension o the scope o the FOI Act to include urther bodies is being considered.

Libel law:Re orms o the law on libel will be taken orward in the next Parliament to protect

reedom o expression. The re orms will build on the work by the Libel Working Group, and includesplans to protect publications that are in the public interest and prevent the growth o libel tourismwhere oreign claimants can use English courts to make libel claims against oreign publicationsaccessible in the UK.

Specialist domestic violence courts: A urther 14 new specialist domestic violence courts will beopened in the East Midlands, London, the North West and the South East. This will bring the totalnumber o specialist domestic violence courts in England and Wales to 141.

Community Payback: The intensive community payback scheme has been extended. The scheme

requires all unemployed o enders sentenced to more than 200 hours o community payback tocomplete their punishment intensively. O enders will be expected to work three days a week anddo a minimum o 18 hours every week clearing undergrowth, picking up litter, renovatingcommunity centres and cleaning up gra ti or local communities.


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Personal data related incidents

In the Cabinet O cesInterim Progress Report on Data Handling Procedures, published on 17December 2007, the Government made a commitment that departments will cover in ormation riskmanagement in their annual reporting. The ollowing gives a summary report o signi cant personaldata related incidents in 2009-10 categorised according to Cabinet O ce requirements. Incidents,the disclosure o which would in itsel create an unacceptable risk o harm, may be excluded inaccordance with the exemptions contained in theFreedom o In ormation Act 2000or may besubject to the limitations o other UK in ormation legislation.

Date oincident(month)

Nature o incident Nature o datainvolved

Numbero peoplepotentiallya ected

Noti cation steps

September The t o unencrypted laptopcontaining sensitive personal datarelating to psychotherapy sessions

Names, prisonernumbers, detailsabout role plays inwhich o enders re-enact their crimesand past experiences

30 Police in ormedand a ectedindividualsidenti ed andin ormed

January Loss o unencrypted foppy disk usedto back up IT system

Prisoner Number,Sentence, PrisonerName, CurrentLocation, Date oBirth, Home Address,Description O ence

500 Disk was recoveredso individuals werenot in ormed

Further actiononin ormationrisk

The Department continues to monitor and assess its in ormation risks, in light o the events notedabove, in order to identi y and address any weaknesses and ensure continuous improvement o itssystems. Since the last reporting year all MoJ sta now undertake a compulsory In ormationAssurance training course when joining the Department.

Incidents deemed by the Data Controller not to all within the criteria or report to the In ormationCommissioners O ce but recorded centrally within the MoJ are set out in the table below. Smalllocalised incidents are not recorded centrally and are not cited in these gures.

Summary o other protected personal data related incidents in 2009-10

Category Nature o incident Total

I Loss o inadequately protected electronic equipment, devices or paper documents romsecured Government premises

48

II Loss o inadequately protected electronic equipment, devices or paper documents romoutside secured Government premises

84

III Insecure disposal o inadequately protected electronic equipment, devices or paperdocuments

4

IV Unauthorised disclosure 313

V Other 56


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The MoJ is applying theGovernments Security Policy Frameworkto control risks across theorganisation. This comprises the requirement or all areas to robustly apply procedures or reportingsecurity incidents where there is the possibility o inadvertent release o personal data, howeverminor. The gures above there ore include small, localised incidents as these are recorded centrally

or MoJ.

Further action on in ormation risk:

The MoJ will continue to monitor and assess its in ormation risks in order to identi y and address anyweaknesses and ensure continuous improvement o its systems.

A key challenge or the year ahead will be delivering In ormation Assurance in the current economicclimate. We will also continue to drive orward an improved MoJ culture on data handling in order toembed good practice in a sustainable way. We will continue working with colleagues within theDepartment and across Whitehall to encourage a joined up approach between in ormation risk,security, ICT and knowledge and in ormation management.

Sickness Absence dataThe average number o working days lost (AWDL) due to sickness or sta across the whole o MoJ(including NOMS but excluding Probation) in 2009-10 was 9.5 days (2008-09; 9.7 days). Withinthis gure sta in Core MoJ (MoJ HQ and Access to Justice combined) recorded 7.3 AWDL againstthe Cabinet O ce target o 7.5 days. NOMS (including Probation) recorded 10.48 AWDL against itstarget o 10.5 days (10.7 AWDL excluding Probation), the gure or NOMS HQ sta was 7.7 AWDL.

Reducing sickness absence remains a work orce strategy priority with all MoJ business areascommitting to urther reducing sickness absences in order to ul l ourSmarter Government commitments.

Equality and diversityThe Ministry is committed to equality o outcomes in employment and service delivery or our staand customers. We want to achieve an organisational culture where everyone, irrespective o race,ethnicity, gender, marital or civil partnership status, disability, sexual orientation, age, genderidentity, caring responsibility, work pattern or trade union membership is treated with airness andrespect, where everyone is able to contribute and develop to their ull potential and where everyoneis con dent about how to ensure their work supports air outcomes or all our diverse customers.

The MoJ is committed to recognising and responding to the diverse needs o our sta , stakeholders andservice users. We ensure sta rom under represented groups have developmental opportunities to bethe best they can be and aim to ensure that our sta are representative o the communities we serve.We also promote equal access to justice or our customers and a right to participate ully in society.

The MoJ is committed to disability equality or both its sta and customers. The MoJ has aReasonable Adjustment Policy under which advice, support and guidance are provided on the widevariety o adjustments available to enable sta at work to be the best they can be where they havea disability. Guidance on supporting sta with a disability and providing reasonable adjustments isalso available in theDepartmental Ability Manual. The MoJ is an authorised user o theTwo TicksSchemeand participates in theGuaranteed Interview Scheme or candidates with a disability.

All parts o the MoJ are involved in ensuring equality and diversity is embedded into service deliveryas well as in policy development. All policies and processes or sta and customers are assessed toensure that equality is at the heart o all we deliver. This helps to build con dence in the justicesystem, both nationally and locally, and to ensure that our sta are sensitive to the needs o thevulnerable and socially excluded.


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Engagement and consultationThe MoJ has made the strategic development o its communications a key priority and aims to beproactive and open, working to engage more e ectively with stakeholders, sta , the public and themedia in the development and delivery o its services.

The MoJ engages extensively with a wide range o external stakeholders as a means o in orming itspolicy development. A range o methods are used, ranging rom ormal stakeholder meetings toelectronic discussion groups and consultation papers.

The MoJ undertakes ormal written public consultations during the course o the year to in orm itspolicy and operational decision making. These consultations are carried out under theGovernmentCode o Practice on Consultation. During the course o 2009, the MoJ issued 45 written ormalconsultations on matters o policy and delivery o public services.

Payment to suppliers

During nancial year 2009-10 the MoJs policy has been to pay suppliers in accordance with the PrimeMinisters commitment o 8 November 2008 that Government Departments should pay supplierswithin 10 days o receipt o a valid invoice at the correct billing address. Excluding the NationalProbation Service, or the nancial year 2009-10 90.7% o invoices were paid within these terms(2008-09: 97.4% within 30 days o receipt). Including the National Probation Service, interest paidunder the Late Payment o Commercial Debts (Interest) Act 1988was 172k (2008-09: 147k).

The per ormance o Probation Boards and Trusts in paying their suppliers was as ollows:

Range No. o Probation Boards and Trusts reportingper ormance within the range

2009-2010 2008-200995 % to 100% 18 17

90% to 94.9% 11 12

85% to 89.9% 6 8

80% to 84.9% 5 2

75% to 79.9% 1 2

70% to 74.9% 1 1

65% to 69.9% 0 0

60% to 64.9% 0 0

55% to 59.9% 0 0

Less than 55% 0 0

No. o Probation Boards and Trusts reporting 42 42

The proportion o the aggregate amount owed to trade creditors at the year end compared with theaggregate amount invoiced by suppliers during the nancial year in terms o days equalled 8.24 days.


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AuditThese accounts have been audited by the Comptroller and Auditor General (C&AG). The notionalcost o the audit or the Core Department in 2009-10 is 340,000 plus an additional 100,000 orthe Consolidated Accounts (2008-09: 350,000 and 100,000).

The total cost o audits across the MoJ group is 3,426,500, o which 1,557,000 is cash and1,869,500 is a notional cost (2008-09: 3,564,250 comprising 1,796,000 cash and 1,768,250notional cost).

This total cost includes:

2009-10

2008-09

Her Majestys Courts Service 415,000 440,000Funds in Court Part A 63,000 65,000

Funds in Court Part C 21,000 21,000

Tribunals Service 116,000 110,000

O ce o the Public Guardian 46,000 47,000

Consolidated Accounts o the Local Probation Boards 67,000 69,000

Individual Probation Boards 1,557,000 1,796,000

National O ender Management Service 285,000 250,000

O ce o the Legal Services Ombudsman 13,000 12,500

O ce o the Legal Services Complaints Commissioner 13,500 13,000

Returning O cers Expenses, England and Wales 35,000 35,000

Returning O cers Expenses, Scotland 7,000 7,000

Judicial Pension Scheme 31,000 30,750

Whole o Government Accounts 20,000 15,000

Wales National Loans Fund 2,500 2,500

Scotland National Loans Fund 2,500 2,500

O cial Solicitor and Public Trustee 58,000 60,000


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IFRS Audit o Restated Balance Sheet

MoJ Core 28,000 25,000

Her Majestys Courts Service 100,000 55,000

Tribunals Service 29,000 11,500O ce o the Public Guardian 7,000 5,000

National O ender Management Service 70,000 41,500

TOTAL 2,986,500 3,114,250

Core Accounts 340,000 350,000

Consolidated Accounts 100,000 100,000

TOTAL 3,426,500 3,564,250

O which

Cash 1,557,000 1,796,000

Notional 1,869,500 1,768,250

3,426,500 3,564,250

The audit o the 42 Probation Areas, or which a cash charge is made, is undertaken by auditorsappointed by the Audit Commission and by the Wales Audit O ce.

The National Audit O ce per orms other statutory audit activity, including value or money andassurance work, at no cost to the MoJ.

To the best o the Accounting O cers and MoJs knowledge, there is no relevant audit in ormationo which the MoJs auditors are unaware. The Accounting O cer has taken all the steps that heought to have taken to make himsel aware o any relevant audit in ormation and to establish that

the MoJs auditors are aware o that in ormation.Sections 6 and 7 o theGovernment Resources and Accounts Act 2000require the C&AG to examine,certi y and report on the accounts be ore they are laid be ore Parliament.

Provision o in ormation and consultation with employeesThe MoJ attaches considerable importance to ensuring the ullest involvement o employees indelivering its aims and objectives. Sta involvement is actively encouraged as part o the day-to-day process o line management and we regularly consult and in orm our constituent Trades Unionsat all levels o the organisation.

Building on its own employee engagement work, the MoJ participated in the Civil Service PeopleSurvey in October 2009. Leadership, the management o change, job satis action, inclusion and airtreatment emerged as key drivers o engagement. Work is being taken orward to urther develop


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MoJs engagement strategy through theEngaging Our People Programme, part o the MoJsTrans orming Justice port olio.

Sustainable DevelopmentThe MoJs per ormance against sustainability targets is overseen by the Sustainable DevelopmentBoard which comprises senior representatives rom each business group within the MoJ. Details oper ormance against government targets can be ound at the ollowing link:

http://www.ogc.gov.uk/sustainable_development_in_government_ministry_o _justice.asp

Good progress has been made on energy e ciency, waste and CO2 rom road vehicles but acontinued ocus on CO2 emissions rom o ces and water consumption is required i these targetsare to be met.

Key actions taken during the year:

Contributing to the O ce o Government Commerce Delivery Plan or Sustainable Procurementyand Operations on the Government Estate, demonstrating the contribution MoJ will make tothe government targets and measures or achievement in sustainable operations;

Increasing video and tele-con erencing acilities to reduce the need or sta to travel toymeetings; and

Signing up in November 2009 to the Waste and Resources Action Program (WRAP) initiative toyreduce by 50% the amount o waste going to land ll by 2012.

Social and Community ResponsibilityWe are committed to making the MoJ truly representative o the communities it serves. This isachieved by various means, including through well-established recruitment procedures which reachout into communities to attract the best people regardless o their background or circumstances.Last year the MoJ was recognised by the organisationWorking Familiesas one o the top 20 best

amily- riendly employers rom the last three decades. MoJ supports sta who volunteer orcommunity and public duties, such as being magistrates or school governors, and activelyencourages members o the public to contribute to the delivery o public services by providing paidtime o work to undertake duties such as volunteering in courts and prisons.

Other matters:Research and DevelopmentThe MoJ undertakes research to enhance policy development and programme evaluations.Expenditure is charged to the Operating Cost Statement as incurred and is reported in Notes 11 and12 to the accounts.

Events A ter the Reporting PeriodIn accordance withIAS 10 Events a ter the reporting period , accounting adjustments and disclosuresare considered up to the point that the nancial statements are authorised or issue. The accounts

were authorised or issue on the same date the Comptroller and Auditor General certi ed theaccounts. Details are provided in Note 39 to the accounts.


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Charitable donationsThe MoJ donated 10p or every completed Sta Engagement Survey to the Civil Service BenevolentFund (CSBF), which raised just over 5,200 in 2009-10. CSBF helps provide help to current and pastcivil servants in di culty.

Management o contingent liabilitiesNote 32 to the accounts sets out the contingent liabilities aced by the MoJ within the scope oIAS37 Provisions, Contingent Liabilities and Contingent Assets. Note 33 sets out those contingentliabilities that are not required to be disclosed under IAS 37 but which are included orParliamentary reporting and accountability purposes. The MoJs approach to minimising the risk ocontingent liabilities crystallising is to operate e ective risk management processes and systems ointernal control to limit both their likelihood and their impact. All legal claims against the MoJ arede ended to the extent that it is cost e ective to do so.

Pension liabilitiesSta employed by local Probation Boards and Trusts are members o the Local Government PensionScheme. The pension liabilities associated with this scheme are accounted or and disclosed inaccordance with IAS 26 Accounting and Reporting by Retirement Beneft Plans in Note 38 to theaccounts. As detailed in Note 10.1, other sta are members o the Principal Civil Service PensionScheme which is an un unded multi-employer bene t scheme which prepares its own accounts butwhere individual employers are unable to identi y their share o the underlying assets and liabilitieso the scheme. As detailed in Note 10.2, members o the judiciary belong to the Judicial PensionScheme which is an un unded multi-employer de ned bene t scheme that produces its ownresource accounts which are prepared by the MoJ.

Estates Management StrategyThe MoJ aims to manage its estate in the most e cient manner to minimise running costs andenvironmental impacts. The MoJs Estates Trans ormation Project has been established to rationalisethe number o administrative buildings in use by headquarters, executive agencies, Non-Departmental Public Bodies and associated bodies in London and in the regions.

The same overarching principles in orm to the management o the operational estate, representingcourts and prisons. HMCS has a programme o court integrations which involves locating di erentcourt jurisdictions within a single building where possible, generating unds or new buildings andre urbishments that deliver signi cant reductions in running costs. NOMS has a capacityprogramme to deliver extra prison places which involves building new prisons with lower per capitarunning costs and increasing the usable operational capacity o the existing estate. In 2009-10,2,905 additional prison places were provided, o which 2,166 places in 26 prisons were deliveredthrough more e ective use o the estate.

Directorships and other signifcant interests A register is maintained by the MoJ that includes details o company directorships and othersigni cant interests held by Board members which may confict with their managementresponsibilities. This register is available or public inspection upon request.

Sir Suma ChakrabartiAccounting O fcer13 September 2010


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Remuneration ReportAuditable Sections

In accordance with the requirements o Schedule 7A o the Companies Act 1985 (as amended), onlycertain sections o the Remuneration Report have been subject to ull external audit. Thesecomprise the sections on salary and pension entitlements.

Remuneration PolicyThe remuneration o senior civil servants is set by the Prime Minister ollowing independent advice

rom the Review Body on Senior Salaries.

The Review Body also advises the Prime Minister rom time to time on the pay and pensions oMembers o Parliament and their allowances; on Peers allowances; and on the pay, pensions andallowances o Ministers and others whose pay is determined by theMinisterial and Other Salaries Act1975.

In reaching its recommendations, the Review Body has regard to the ollowing considerations:

the need to recruit, retain and motivate suitably able and quali ed people to exercise theirydi erent responsibilities;

regional/local variations in labour markets and their e ects on the recruitment and retention oysta ;

Government policies or improving the public services including the requirement ony

departments to meet the output targets or the delivery o departmental services;

the unds available to departments as set out in the Governments departmental expenditureylimits;

the Governments infation target; andy

the evidence it receives about wider economic considerations and the a ordability o itsyrecommendations.

Further in ormation about the work o the Review Body can be ound at www.ome.uk.com.

Board members and senior civil servants remunerationThe salaries o the MoJ Board members and the Departmental Board members were determined bythe Permanent Secretary in accordance with the rules set out inChapter 7.1, Annex A o the CivilService Management Code.The salaries o other senior civil servants were set ollowing discussionsbetween the Permanent Secretary and his Director Generals.

Per ormance based pay awards are based on an assessment o per ormance against objectivesagreed between the individual and line manager at the start o the reporting year. Per ormance willalso have an e ect on any bonus element awarded.


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Service ContractsCivil service appointments are made in accordance with theCivil Service Commissioners Recruitment Code, which requires appointment to be on merit on the basis o air and opencompetition but also includes the circumstances when appointments may otherwise be made.

Unless otherwise stated below, the o cials covered by this report hold appointments which areopen-ended. Early termination, other than or misconduct, would result in the individual receivingcompensation as set out in the Civil Service Compensation Scheme.

Further in ormation about the work o the Civil Service Commissioners can be ound atwww.civilservicecommissioners.gov.uk.


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Ministers salary and pension entitlementsThe salary, taxable bene ts in kind and pension entitlements or Ministers are shown in the

ollowing tables:

Remuneration 2009-10 2008-09Ministers Salary Bene ts in Kind

(rounded to thenearest 100)

Salary Bene ts in Kind(rounded to the

nearest 100)

Rt Hon Jack Straw MP,Secretary o State or Justice andLord Chancellor

78,356 79,179

Rt Hon Michael Wills MP,Minister o State

40,533 41,043

Maria Eagle MP, Minister o State( rom 8 June 2009) andpreviously, Parliamentary UnderSecretary (to 7 June 2009)*

38,737 31,236

Rt Hon David Hanson MP,Minister o State (to 7 June 2009)

10,049 (40,646ull-year

equivalent)

41,134

Bridget Prentice MP,Parliamentary Under Secretary

30,937 31,322

Lord Bach,

Parliamentary Under Secretary

89,714 (110,606

ull-yearequivalent)**

Claire Ward MP, ParliamentaryUnder Secretary

( rom 9 June 2009)

25,024 (30,851ull-year

equivalent)

Shahid Malik MP,Parliamentary Under Secretary(to 15 May 2009)

3,732 (30,851 ull- year equivalent)

15,094 (30,851ull-year

equivalent)

Rt Hon Jim Murphy MP,Secretary o State or Scotland

78,356 35,486 (78,356ull-year

equivalent)


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Remuneration 2009-10 2008-09

Ministers Salary Bene ts in Kind(rounded to the

nearest 100)

Salary Bene ts in Kind(rounded to the

nearest 100)

Ann McKechin MP,Parliamentary Under Secretary

or Scotland

30,808 500 16,428 (30,851ull-year

equivalent)

Lord Davidson o Glen Clova QC,Advocate General or Scotland

139,109 135,449

Peter Hain MP, Secretary o Stateor Wales ( rom 5 June 2009)

64,208 (78,356ull-year

equivalent)

Rt Hon Paul Murphy MP, Secretaryo State or Wales

(to 5 June 2009)

35,462 (78,356ull-year

equivalent)

78,961

Wayne David MP, ParliamentaryUnder Secretary or Wales

30,851 15,011 (30,851ull-year

equivalent)

Notes to the table: Calculations or the ull-year equivalent salary exclude bonuses, allowances and ex-gratia payments.

There may be variances between the salaries disclosed in the table above and the salary entitlement orMinisters published in the Ministerial Salaries actsheet (M6). This is due to amounts paid in 2009-10including payments relating to 2008-09.

A number o Ministers elected to waiver their rights to pay increases since November 2007.

*Maria Eagle MP was Parliamentary Under Secretary until 7 June 2009. From 8 June 2009 she was Ministero State. The FTE or a Parliamentary Under Secretary is 30,851. The FTE or a Minister is 40,646.

**The salary o the Parliamentary Under Secretary o State Lord Bach was included in the gure Lords inwaiting, under Additional Ministerial salaries borne by HM Treasury in the accounts o HM Treasury until June 2009. From June 2009 his salary was included in the MoJs accounts.

Shahid Malik MP has also held responsibilities in the Home O ce rom 26 March 2009. He le t the MoJ on15 May 2009 and later moved to the Department or Communities and Local Government.

Maria Eagle MP has also held a ministerial post at the Government Equalities O ces rom 6 October 2008or which she received no additional salary or remuneration.


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PensionBene ts

Accruedpension atage 65 as

at 31March2010

Realincrease inpension at

age 65

CETV at 31March2010

CETV at 31March

(published)

Real increasein CETV

Ministers 000 000 000 000 000

Rt Hon Jack Straw MP, Secretary o State or Justice and Lord Chancellor

25-30 0-2.5 525 467 42

Rt Hon Michael Wills MP, Minister o State 0-5 0-2.5 68 50 11

Maria Eagle MP, Minister o State ( rom 8 June 2009) and previously, ParliamentaryUnder Secretary(to 7 June 2009)

5-10 0-2.5 88 69 9

Rt Hon David Hanson MP, Minister o State(to 7 June 2009) 5-10 0-2.5 93 84 7

Bridget Prentice MP, Parliamentary UnderSecretary

5-10 0-2.5 109 82 18

Lord Bach, Parliamentary Under Secretary 15-20 0-2.5 310 251 32

Claire Ward MP, Parliamentary UnderSecretary ( rom 9 June 2009)

0-5 0-2.5 28 22 3

Shahid Malik MP, Parliamentary UnderSecretary (to 15 May 2009)

0-5 0-2.5 4 3 0*

Rt Hon Jim Murphy MP, Secretary o State orScotland

5-10 0-2.5 75 55 9

Ann McKechin MP, Parliamentary UnderSecretary or Scotland

0-5 0-2.5 14 4 6

Lord Davidson o Glen Clova QC, AdvocateGeneral or Scotland

10-15 2.5-5 170 118 33

Peter Hain MP, Secretary o State or Wales( rom 5 June 2009)

0-5 0-2.5 26 0 20

Rt Hon Paul Murphy MP, Secretary o Stateor Wales (to 5 June 2009)

15-20 0-2.5 345 332 8

Wayne David MP, Parliamentary UnderSecretary or Wales

0-5 0-2.5 28 16 7

Notes to the table: * The actual real increase in CETV or Shahid Malik MP is 455.

The MoJ is not required to disclose pension in ormation or the Lord Chancellor under CabinetO ce regulations. However in the interest o transparency and since the appointment o Rt Hon Jack Straw MP to the role, the MoJ has decided to disclose this in ormation.


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Ministerial PensionsPension bene ts or Ministers are provided by the Parliamentary Contributory Pension Fund (PCPF).The scheme is made under statute (the regulations are set out inStatutory Instrument SI 1993 No3253, as amended ).

Those Ministers who are Members o Parliament may also accrue an MPs pension under the PCPF(details o which are not included in this report). The arrangements or Ministers provide bene ts onan average salary basis, taking account o all service as a Minister. The accrual rate has been 1/40th since 15 July 2002 (or 5 July 2001 or those that chose to backdate the change) but Ministers, incommon with all other members o the PCPF, can opt or a 1/50th accrual rate and a lower rate oemployee contribution.

Bene ts or Ministers are payable at the same time as MPs bene ts become payable under thePCPF or, or those who are not MPs, on retirement rom ministerial o ce rom age 65. Pensions areincreased annually in line with changes in the Retail Price Index. (From 2011-12, the Consumer PriceIndex will be used.) Members pay contributions o 6% o their ministerial salary i they have opted

or the 1/50th accrual rate or 10% o salary i they have opted or the 1/40th accrual rate. There isalso an employer contribution paid by the Exchequer representing the balance o cost as advised bythe Government Actuary. This is currently 26.8% o the ministerial salary.

The accrued pension quoted is the pension the Minister is entitled to receive when they reach 65, orimmediately on ceasing to be an active member o the scheme i they are already 65.

The Cash Equivalent Trans er Value (CETV)This is the actuarially assessed capitalised value o the pension scheme bene ts accrued by amember at a particular point in time. The bene ts valued are the members accrued bene ts andany contingent spouses pension payable rom the scheme. A CETV is a payment made by a pensionscheme or arrangement to secure pension bene ts in another pension scheme or arrangementwhen the member leaves a scheme and chooses to trans er the pension bene ts they have accruedin their ormer scheme. The pension gures shown relate to the bene ts that the individual hasaccrued as a consequence o their total ministerial service, not just their current appointment as aMinister. CETVs are calculated in accordance withThe Occupational Pension Schemes (Trans er Values) (Amendment) Regulationsand do not take account o any actual or potential reduction tobene ts resulting rom Li etime Allowance Tax which may be due when pension bene ts are taken.

The real increase in the value o the CETVThis is e ectively the element o the increase in accrued pension unded by the Exchequer. Itexcludes increases due to infation and contributions paid by the Minister and is worked out usingcommon market valuation actors or the start and end o the period.


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Senior Managers salary and pension entitlementsThe salary, taxable bene ts in kind and pension entitlements or Senior Managers is shown in the

ollowing tables:


Senior ManagersSalary inc

bonuses

Bene ts in Kind(rounded to the

nearest 100)Salary inc

bonuses


nearest 100)

000 000

Sir Suma Chakrabarti,Permanent Secretary

180-185 38,400 195-200 34,500

Carolyn Downs,Deputy Permanent Secretary & DirectorGeneral, Corporate Per ormance (to 5March 2010)

155-160(165-170

ull-yearequivalent)

40-45 (165-170ull-year

equivalent)

Rowena Collins-Rice,Director General, Democracy,Constitution and Law and Chie LegalAdvisor

130-135 125-130


175-180 100 175-180 100

Peter Handcock CBE, Director General,Access to Justice

145-150 3,200 145-150 1,700

Marco Pierleoni, Director General,Finance and Commercial(to 31 January 2010)

155-160(170-175

ull-year

equivalent)

170-175

Ann Beasley CBE, Director General,Finance ( rom 1 February 2010)

20-25(130-135

ull-yearequivalent)

Phil Wheatley CB, Director General,National O ender Management Service

170-175 170-175

Jonathan Slater, Director General,Trans orming Justice

155-160 60-65(140-145

ull-yearequivalent)

Alisdair McIntosh, Head o the ScotlandO ce

90-95 5-10 (80-85ull-year

equivalent)

Alan Cogbill, Head o the Wales O ce(to 30 September 2009)

45-50(95-100ull -year

equivalent)

95-100

Fiona Adams-Jones, Head o the WalesO ce ( rom 1 October 2009)

45-50(80-85ull-year

equivalent)


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Non-Executive Directors


Non-Executive DirectorsSalary inc

bonuses


nearest 100)Salary inc

bonuses


nearest 100)000 000

David Crawley, Audit Committee Chairand Non-Executive Director, WalesO ce

5-10 5-10 1,900

Ian Summers, Non-Executive Director,Wales O ce

5-10 5-10

David MacLeod, Non-Executive Director 5-10 5-10

Anne Bul ord, Non-Executive Director 5-10 5-10

Notes to the table: Calculations or the ull-year equivalent salary exclude bonuses, allowances and ex-gratia payments.

Beverley Shears, ormer Director General or Human Resources, le t the Department on 31 March 2009.From 1 April 2009 to 5 March 2010 responsibility or Human Resources came under Carolyn Downs, DeputyPermanent Secretary & Director General Corporate Per ormance. Carolyn Downs le t the Management Boardon 5 March 2010. Since that date responsibility or Human Resources has come under Jonathan Slater,Director General, Trans orming Justice.

Fiona Adams-Jones is on loan rom The Welsh Assembly Government rom 1 October 2009 to1 October 2010.

Alisdair McIntosh is on loan rom the Scottish Government.

Bonus payments made in 2009-10 are or bonuses awarded or 2008-09. Bonus payments made in 2008-09were or bonuses awarded or 2007-08. 2009-10 bonuses are payable in 2010-11. The Accounting O cerdeclined the bonus awarded to him.

Non-Executive Directors are paid on a daily rate basis.

John Aldridge has been Chair o the Scotland O ce Audit Committee since 1 April 2009. He is a ormeremployee o the Scottish Government and received no remuneration or this role.


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Compensation or loss o o fce

Alan Cogbill, who was head o the Wales O ce, le t under Compulsory Early Retirement Terms on30 September 2009. He received immediate payment o his pension and associated lump sum plusa compensation payment o 48,548.

Service Contracts

Senior Managers Contract start dateUnexpired term

(years)Notice period

(months)

Sir Suma Chakrabarti, Permanent Secretary 1 September 1984 14 3

Rowena Collins-Rice, Director General,Democracy, Constitution and Law and ChieLegal Advisor

1 July 1985 15 3

Helen Edwards CBE,

Director General, Justice Policy

14 January 2002 8 3

Peter Handcock CBE,Director General, Access to Justice

4 January 1971 6 3

Ann Beasley CBE,Director General, Finance( rom 1 February 2010)

1 July 2002 13 3

Phil Wheatley CB,Director General,National O ender Management Service

21 July 1969 3 3

Jonathan Slater,Director General,Trans orming Justice

17 October 2001 16 3


26 June 2000 18 1

Fiona Adams-Jones,Head o the Wales O ce( rom 1 October 2009)

25 February 1974 9 3

Carolyn Downs, Deputy Permanent Secretary& Director General, Corporate Per ormance(to 5 March 2010)

Le t MoJ CorporateManagement Board

Marco Pierleoni, Director General,Finance and Commercial(to 31 January 2010)

Le t MoJ CorporateManagement Board

Alan Cogbill,Head o the Wales O ce(to 30 September 2009)

Le t MoJ

David Crawley,Audit Committee Chair and Non-ExecutiveDirector, Wales O ce

5 December 2005 1 n/a

Ian Summers,Non-Executive Director,Wales O ce

1 September 2007 0.5 n/a

David MacLeod,Non-Executive Director 21 April 2008 1 1


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Senior Managers Contract start dateUnexpired term

(years)Notice period

(months)

Anne Bul ord,Non-Executive Director

21 April 2008 1 1

Notes to the table:Contracts or Senior Civil Servants were not issued until 1996; where people joined be ore contracts wereintroduced the table shows their joining date.Unexpired term is either remaining contract period on xed term contracts or when an individual is 65 or allother cases.Fiona Adams-Jones is on loan rom The Welsh Assembly Government rom 1 October 2009 to 1 October2010.

Alisdair McIntosh is on loan rom the Scottish Government.

Pension Benefts

Senior Managers

Accruedpension and

relatedlump sum atpension ageat 31 March

2010

Realincrease in

pension andrelated

lump sum atpension ageat 31 March

2010CETV at 31

March 2010

CETV at 31March 2009

(recalculated)

CETV at 31March 2009(published)

Realincrease /

(decrease)in CETV

000 000 000 000 000 000

Sir Suma Chakrabarti,

Permanent Secretary

55-60 plus

170-175lump sum

2.5-5 plus

10-12.5lumpsum

1,077 951 951 62

Carolyn Downs,Deputy Permanent Secretary &Director General, CorporatePer ormance(to 5 March 2010)

0-5 2.5-5 *55 12 8 38

Rowena Collins-Rice,Director General, Democracy,Constitution and Law andChie Legal Advisor

40-45 plus120-125

lump sum

7.5-10 plus22.5-25

lumpsum

702 526 536 141


15-20 plus0-5 lump

sum

2.5-5 plus0-2.5 lump

sum

310 244 238 47

Peter Handcock CBE,Director General,Access to Justice

85-90 0-2.5 1,702 1,397 1,397 227

Marco Pierleoni,Director General,Finance and Commercial(to 31 January 2010)

55-60 52.5-55 **572 47 40 72

Ann Beasley CBE,Director General,Finance( rom 1 February 2010)

40-45 plus130-135

lump sum

0-2.5 plus2.5-5 lump

sum

823 ***751 - 23


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Senior Managers

Accruedpension and

relatedlump sum atpension ageat 31 March

2010

Realincrease in

pension andrelated

lump sum atpension ageat 31 March

2010CETV at 31

March 2010

CETV at 31March 2009

(recalculated)

CETV at 31March 2009(published)

Realincrease /

(decrease)in CETV

000 000 000 000 000 000

Phil Wheatley CB,Director General,National O ender ManagementService

80-85 plus240-245

lump sum

2.5-5 plus10-12.5

lumpsum

1,891 1,808 1,812 81

Jonathan Slater,Director General,Trans orming Justice

30-35 plus100-105

lump sum

2.5-5 plus7.5-10 lump

sum

589 503 510 52


20-25 plus60-65

lump sum

2.5-5 plus7.5-10 lump

sum

323 266 265 39

Alan Cogbill,Head o the Wales O ce(to 30 September 2009)

40-45 plus125-130

lump sum

0-2.5 plus0-2.5 lump

sum

****945 899 899 13

Fiona Adams-Jones,Head o the Wales O ce( rom 1 October 2009)

35-40 plus105-110

lump sum

2.5-5 plus12.5-15

lumpsum

734 *****648 - 93

Notes to the table: Due to certain corrections being made to last years CETV calculations there may be slight di erencesbetween the nal period CETV or 2008-09 and the start o period CETV or 2009-10.* The gure quoted or Carolyn Downs is to 5 March 2010.** The gure quoted or Marco Pierleoni is to 31 January 2010.*** The gure quoted or Ann Beasley is rom 1 February 2010.**** The gure quoted or Alan Cogbill is to 30 September 2009.***** The gure quoted or Fiona Adams-Jones is rom 28 September 2009.None o the Non-Executive Directors have pension entitlements with the MoJ.

SalarySalary includes gross salary; per ormance pay or bonuses; overtime; reserved rights to Londonweighting or London allowances; recruitment and retention allowances; private o ce allowancesand any other allowance to the extent that it is subject to UK taxation.

This report is based on payments made by the MoJ and thus recorded in these accounts. In respecto ministers in the House o Commons, departments bear only the cost o the additional ministerialremuneration; the salary or their services as a MP (64,766 as o May 2009), and variousallowances to which they are entitled are borne centrally. However, the arrangement or ministersin the House o Lords is di erent in that they do not receive a salary but rather an additionalremuneration, which cannot be quanti ed separately rom their ministerial salaries. This totalremuneration, as well as the allowances to which they are entitled, is paid by the MoJ and is

there ore shown in ull in the gures above.

Phil Wheatley is paid by the NOMS Agency.


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Benefts in kindThe monetary value o bene ts in kind covers any bene ts provided by the employer and treated byHM Revenue and Customs as a taxable emolument.

Peter Handcock had the use o a car with the taxable bene ts assessed at 3,200 (2008-09: 1,700

to the nearest 100). Sir Suma Chakrabartis bene t in kind related to the use o a car and theassociated tax liability which is assessed at 38,400 (2008-09: 34,500 to the nearest 100). Asthis arrangement extended the o cial working time o the Permanent Secretary, the MoJ met thetax liability. Helen Edwards working lunches with business associates and sta with the totaltaxable bene ts assessed at 100 (2008-09: 100 to the nearest 100).

Ann McKechin MP has bene ts in kind or travel and subsistence.

These are an estimate, as the nal value is to be agreed between the Secretary o State and HerMajestys Revenue and Customs.

Civil Service PensionsPension bene ts are provided through the Civil Service pension arrangements. From 30 July 2007,civil servants may be in one o our de ned bene t schemes; either a nal salary scheme (classic, premiumor classic plus); or a whole career scheme (nuvos). These statutory arrangements areun unded with the cost o bene ts met by monies voted by Parliament each year. Pensions payableunder classic, premium, classic plusand nuvosare increased annually in line with changes in theRetail Prices Index (RPI). (From 2011-12, the Consumer price Index will be used). Members who joined rom October 2002 could opt or either the appropriate de ned bene t arrangement or agood quality money purchase stakeholder pension with a signi cant employer contribution(partnership pension account).

Employee contributions are set at the rate o 1.5% o pensionable earnings orclassicand 3.5% or premium, classic plusand nuvos. Bene ts inclassicaccrue at the rate o 1/80th o nal pensionableearnings or each year o service. In addition, a lump sum equivalent to three years pension ispayable on retirement. For premium, bene ts accrue at the rate o 1/60th o nal pensionableearnings or each year o service. Unlikeclassic, there is no automatic lump sum.Classic plusisessentially a hybrid with bene ts or service be ore 1 October 2002 calculated broadly as perclassic and bene ts or service rom October 2002 worked out as in premium. Innuvosa member builds upa pension based on his pensionable earnings during their period o scheme membership. At the endo the scheme year (31 March) the members earned pension account is credited with 2.3% o theirpensionable earnings in that scheme year and, immediately a ter the scheme year end, the accruedpension is uprated in line with RPI. In all cases members may opt to give up (commute) pension orlump sum up to the limits set by the Finance Act 2004.

The partnership pension account is a stakeholder pension arrangement. The employer makes a basiccontribution o between 3% and 12.5% (depending on the age o the member) into a stakeholderpension product chosen by the employee rom a panel o three providers. The employee does nothave to contribute but where they do make contributions, the employer will match these up to alimit o 3% o pensionable salary (in addition to the employers basic contribution). Employers alsocontribute a urther 0.8% o pensionable salary to cover the cost o centrally-provided risk bene tcover (death in service and ill health retirement).

The accrued pension quoted, is the pension the member is entitled to receive when they reachpension age, or immediately on ceasing to be an active member o the scheme i they are already at


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or over pension age. Pension age is 60 or members oclassic, premiumand classic plusand 65 ormembers o nuvos.

Further details about the Civil Service pension arrangements can be ound at the websitewww.civilservice-pensions.gov.uk.

Cash Equivalent Trans er ValuesA Cash Equivalent Trans er Value (CETV) is the actuarially assessed capitalised value o the pensionscheme bene ts accrued by a member at a particular point in time. The bene ts valued are themembers accrued bene ts and any contingent spouses pension payable rom the scheme. A CETVis a payment made by a pension scheme or arrangement to secure pension bene ts in anotherpension scheme or arrangement when the member leaves a scheme and chooses to trans er thebene ts accrued in their ormer scheme. The pension gures shown relate to the bene ts that theindividual has accrued as a consequence o their total membership o the pension scheme, not justtheir service in a senior capacity to which disclosure applies. The gures include the value o any

pension bene t in another scheme or arrangement which the individual has trans erred to the CivilService pension arrangements. They also include any additional pension bene t accrued to themember as a result o their buying additional pension bene ts at their own cost. CETVs arecalculated in accordance withThe Occupational Pension Schemes (Trans er Values) (Amendment) Regulationsand do not take account o any actual or potential reduction to bene ts resulting romLi etime Allowance Tax which may be due when pension bene ts are taken.

Real increase in CETVThis refects the increase in CETV that is unded by the employer. It does not include the increase inaccrued pension due to infation, contributions paid by the employee (including the value o anybene ts trans erred rom another pension scheme or arrangement) and uses common marketvaluation actors or the start and end o the period.

Sir Suma ChakrabartiAccounting O cer13 September 2010


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Statement o Accounting O cersResponsibilitiesUnder the Government Resources and Accounts Act 2000, HM Treasury has directed the MoJ toprepare, or each nancial year, resource accounts detailing the resources acquired, held or disposedo during the year and the use o resources by the MoJ during the year. The accounts are prepared onan accruals basis and must give a tru

Documents

Moj Resource Accounts 2010