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

23. The results for 2009–10 show net
expenditure of £12,859.2 million
(2008–09: £11,838.0 million). This
is derived from the comparison
of expenditure against income
for the year. As an NDPB, the LSC
has been required to break even
one year with another against the
resource budget, and for 2009–10
the total expenditure was within
the resource budget set by BIS of
£12,955.1 million. Total reserves
in the same period decreased by
£77.8 million.
24. Capital expenditure on additions
in the year, mainly on computer
systems, totalled £40.8 million
(2008–09: £43.8 million).
25. Research and development
expenditure during the year,
including the National Employer
Skills Survey and various other
activities, amounted to
£2.5 million (2008–09:
£5.4 million).
26. The Late Payment of Commercial
Debts (Interest) Act 1998 requires
government bodies, in the absence
of agreement to the contrary, to
make payments to suppliers within
30 days of either the provision of
goods or services, or the date on
which the invoice was received.
The target set by the Treasury for
payment to suppliers within 30
days is 95 per cent. In 2009–10,
the LSC paid 96.5 per cent
(2008–09: 96.0 per cent) of its
invoices within 30 days and
81.3 per cent (2008–09:
70.2 per cent) of its invoices
within 10 days. It incurred £nil in
interest charges in respect of
late payments for 2009–10
(2008–09: £nil).
27. During the year, 23,980 days
(2008–09: 25,858 days) were
attributable to sickness absence.
Using the average number of
payroll staff employed over the
year (per note 5 to the accounts)
this equates to approximately
7.9 days’ sickness per employee
per year (2008–09: 8.3 days).
Main trends and factors
underlying development
and performance
28. LSC programme expenditure
increased by over 9 per cent to
£12.9 billion.
29. Youth and Adult Apprenticeships
expenditure rose by 13.8 per cent
and 10.6 per cent respectively.
30. BIS capital programme expenditure
delivered strong growth, up
46.7 per cent relative to 2008–09.
This reflects the new clarity of
direction that exists within the
programme, with current and
future funding now aligned to
need.
31. After allowing for some costs
relating to the Machinery
of Government changes,
administration expenditure fell
slightly as the LSC continued
to contain costs within budget
by achieving its Comprehensive
Spending Review (CSR)
efficiency savings target despite
organisational change.
32. Public finance restraint is expected,
at the very least over the short
to medium term. Although
the precise impact is currently
unknown, the LSC has achieved
all of its CSR efficiency targets
to date, enabling it to live within
its administration budget again
for 2009–10. This augurs well for
the organisations that will take
forward its agenda.
Auditor
33. The accounts are audited by the
Comptroller and Auditor General,
who is appointed by statute and
whose Certificate and Report
appear on page 44. Total audit
fee expenditure is expected to
be £257,000, of which £242,000
(2008–09: £220,000) relates to
the statutory audit of the LSC’s
accounts. In addition, an audit
fee of £15,000 was incurred to
support conversion to IFRS in
2009–10. No other services were
provided by external audit during
the year.
Leadership and Governance
LSC Annual Report and Accounts 2009–10 19