FSA Annual Report 2006/07 - Better Regulation Ltd

80
Section five – Financial statements
FSA Annual Report 2006/07
Balance Sheet analysis
Whereas the FSA allocates its costs to business segments, as set out above, it
does not allocate assets and liabilities to those segments. This is for two
reasons, first as fees are not set on the basis of the costs we incur in
regulating individual firms, our working capital cannot be allocated to
business segments, and second as we are not a profit making organisation,
we do not consider return on capital measures.
Geographical analysis
The FSA regulates entities that operate within the UK Financial Services
Industry including the regulation of foreign domiciled entities operating
within the UK. The foreign domiciled entities account for less than 10% of
the fee base of the FSA. No further geographical analysis is presented.
5. Surplus for the year
Surplus for the year has been arrived at after charging/(crediting) the
following, which are included in administrative costs:
Note 2007 2006
£m £m
Depreciation of property, plant and equipment 9.1 8.7
Amortisation of intangible assets 5.3 5.3
Staff costs 6 186.7 175.6
Auditor’s remuneration for audit services (see below).
RSM Robson Rhodes LLP were the auditor for the full financial year.
Total fees 12 months to 12 months to
31 March 2007 31 March 2006
£’000 % £’000 %
Fees payable to the FSA’s auditor for
the audit of the FSA’s annual accounts 79 98 98 68
Fees paid to the FSA’s auditor or their
associates in connection with
non-audit work
• Secondments – – 46 32
• Other services 2 2 – –
Total 81 100 144 100
All fees payable to the auditor are stated inclusive of VAT, as VAT is not
generally recoverable by the FSA.
RSM Robson Rhodes LLP were appointed as auditor on 15 September 2005,
accepting the appointment on 13 January 2006. Their audit fee for 2005/06
included non-recurring costs of £21,150 (including VAT) for work
undertaken by RSM Robson Rhodes LLP in auditing the implementation of
our decision to adopt IFRS.