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

14 Provisions for liabilities and charges
Early
retirement
£’000
agenda for
change
Theme 7
£’000
Funding
claims
£’000
Project
Connect
£’000
Career
Development
Loans Property
£’000 £’000
Machinery of
Government
£’000
Provision balance at 1 April 2008 294 18,692 1,530 3,383 0 0 0 23,899
Additional charge in year 0 3,044 0 0 3,411 0 0 6,455
Provision utilised in year (97) (3,403) 0 (561) 0 0 0 (4,061)
Provision unused and reversed in year 0 (2,613) (500) (1,771) 0 0 0 (4,884)
Provision balance at 31 March 2009 197 15,720 1,030 1,051 3,411 0 0 21,409
Provision balance at 1 April 2009 197 15,720 1,030 1,051 3,411 0 0 21,409
Additional charge in year 0 0 0 0 2,321 2,165 36,900 41,386
Provision utilised in year (75) (3,542) 0 0 (2,406) 0 0 (6,023)
Provision unused and reversed in year 0 (7,547) (1,030) (1,051) (578) 0 0 (10,206)
Balance of provision at 31 March 2010 122 4,631 0 0 2,748 2,165 36,900 46,566
Total
£’000
Indicative timing of outflows required to settle obligation
Within one year 61 1,268 0 0 1,938 1,434 6,604 11,305
Between two and five years 61 3,041 0 0 810 731 19,090 23,733
Greater than five years 0 322 0 0 0 0 11,206 11,528
Balance of provision at 31 March 2010 122 4,631 0 0 2,748 2,165 36,900 46,566
Early retirement
This covers the LSC’s additional pension contributions that are charged against administration expenditure. These are
defined by and made to the scheme administrator for the period up to normal retirement age for individuals who retired
early under the LSC’s Reshaping programme.
agenda for change: Theme 7
This relates to the costs chargeable against administration of reorganising the LSC under the agenda for change
programme. The balance covers the LSC’s additional pension contributions to the scheme administrator in relation to
individuals who retired early as part of agenda for change.
Career Development Loans
The liability to cover interest payments that occur under this programme while the students are in learning has transferred
to the Skills Funding Agency. This provision reflects the probable outflow of funds in relation to the cost of covering
interest-driven liabilities while the recipients of the loans complete their course.
Finance
Property
The LSC has some property that either has vacant space or will be disposed of in the near future. This provision reflects the
probable cost of retaining the space or disposing of the property. The value of the provision is assessed as all of the first
year’s estimated costs and 80 per cent of the subsequent years’ costs.
Machinery of Government
The Machinery of Government changes have resulted in the closure of the LSC and the transfer of functions to new
organisations. This provision covers the costs of disposing of unneeded properties as a consequence of these changes.
LSC Annual Report and Accounts 2009–10 71