The Learning and Skills Councils Annual Report and Accounts for ...

Financial commentary
Accounts direction and
statutory background
1. These accounts have been
prepared under an accounts
direction issued by BIS in
accordance with Schedule 1 to
the Learning and Skills Act 2000
and the financial memorandum
between the Department for
Education and Skills and the LSC
dated 8 May 2006, that is now
under the authority of BIS.
2. The Apprenticeships, Skills,
Children and Learning Act 2009
provided for the dissolution of the
LSC and the transfer of functions,
staff and property to the Young
People’s Learning Agency (YPLA),
the Skills Funding Agency, Regional
Development Agencies and local
authorities.
3. This is the final set of accounts for
the LSC, as 2009–10 was its final
year of operation and it formally
ceased operations on 31 March
2010.
4. Under Amendment Order
SI 2010/1151, paragraph 14 of
Schedule 1 to the Learning and
Skills Act 2000 remains in force
to ensure the preparation of final
accounts for the LSC. The Chief
Executive of Skills Funding has
been given the responsibility for
preparing these final accounts.
Going concern
5. The accounts have been prepared
on the assumption that, under
the conventions of Machinery
of Government changes, the
LSC’s functions will continue
in operational existence for the
foreseeable future albeit through
different delivery bodies.
6. The Statement of Financial
Position at 31 March 2010 shows
net liabilities of £86.5 million
(2008–09: £164.3 million net
liabilities). This reflects the
inclusion of liabilities falling due
in future years which will now be
financed by the organisations that
continue the functions of the LSC
or by BIS.
7. Grant-in-aid for 2010–11, taking
into account the amount required
to meet the LSC’s, Skills Funding
Agency’s and YPLA’s liabilities
falling due in the year, has already
been included in the estimates
of BIS and the Department for
Education (DfE) for that year.
These estimates have been
approved by Parliament, and there
is no reason to believe that the
departments’ future sponsorship
and future Parliamentary approval
will not be forthcoming.
8. Consequently, it is appropriate
under the requirements of the
Government Financial Reporting
Manual to prepare this final set of
accounts on a going concern basis.
Machinery of Government
changes
9. The LSC ceased operation on
31 March 2010 as part of planned
Machinery of Government
changes. As a consequence,
a provision of £36.9 million
was established relating to the
onerous lease costs of surplus
properties. The remaining net book
value of £3.7 million of fixtures
and fittings in these buildings
was charged to expenditure.
£3.9 million was incurred buying
out some employment benefits
for individuals who transferred
to local authorities as part of the
Machinery of Government changes
and a further £1.4 million was
incurred for redundancies.
10. As noted above, the functions
of the LSC have transferred
into various organisations and,
accordingly, a share of the assets,
liabilities and reserves transfer
also. Note 16 to the accounts
shows how the final Statement
of Financial Position of the LSC
has been divided between the
organisations that will take
forward its functions.
Leadership and Governance
LSC Annual Report and Accounts 2009–10 17