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Annual report 2009/10: Financial Accounts

for the year ended 31 March 2010

The revised grant memorandum, which came into effect on 1 September 1999, sets out the arrangements for the use of the grant made annually by the Office of the Deputy Prime Minister (ODPM), and its successor the Department for Communities and Local Government (CLG), from the Revenue Support Grant to meet the cost of the Local Government Ombudsman service in England.

For the year ended 31 March 2010, operational expenditure totalled £13.124 million after capitalisation – a net underspend of £1.6 million. The Commission invested £1.638 million in non current assets which were capitalised.

The Commission has elected to prepare the Annual Accounts for 2009/10 under ‘International Financial Reporting Standards’ (IFRS) and has restated prior year comparators under IFRS convention. The National Audit Office has audited the latter and has approved the restatements. The main accounts were subject to audit in June 2010.

The tables which follow show the summarised financial statements for the year ended 31 March 2010. The figures have been extracted from the unaudited accounts. The audited accounts, prepared in the form agreed with CLG, and the statement of accounting policies and the notes to the accounts will be published separately. They will be available from the Secretary of the Commission at 10th Floor, Millbank Tower, Millbank, London SW1P 4QP, telephone 020 7217 4683 and on our website at www.lgo.org.uk in August 2010.

Table 15: Statement of financial position at 31 March 2010
Liabilities

Balances at 31.3.10  £'000

Balances at 31.3.09 £'000

Assets

Balances at 31.3.10 £'000

Balances at 31.3.09 £'000

Non-current assets 1,633 615
Creditors 685 1,746 Cash and bank deposits 1,699 1,117
Pension Fund liability 32,753 12,875 Pension Fund reserve 32,753 12,875
Working balance 3,761 611 Debtors and prepayments 1,114 625
37,199 15,232 37,199 15,232

Table 16: Income statement for year ended 31 March 2010
Expenditure 2009/10 £'000 2008/09 £'000 Income 2009/10 £'000 2008/09 £'000
Staffing 8,716 10,572 Grant in Aid/Revenue Support Grant 16,145 12,600
Professional costs 644 545 Interest on deposits 17 68
Accommodation 2,391 1,826 Rents and service charges 627 320
Office expenses 1,164 950 Training income 139 148
Travel and subsistence 208 171 Other receipts 17 7
Pension fund cost 984 420
Total expenditure 14,107 14,484 Total income 16,945 13,143
Surplus credited to working balance 0 0 Deficit (surplus) charged to working balance -2,838 1,341
14,107 14,484 14,107 14,484

Staffing 2009/10

The total employee payroll bill for the year was £8.7 millon. The number of Ombudsmen and their staff whose salary at 31 March exceeded £30,000 were:

Table 17: Salaries exceeding £30,000
2009 2010
£30,001 - £40,000 69 46
£40,001 - £50,000 32 36
£50,001 - £60,000 10 12
£60,001 - £70,000 1 2
£70,001 - £80,000 1 1
£80,001 - £90,000 3 2
£90,001 - £100,000 0 1
£100,001 - £110,000 0 0
£110,001 - £120,000 0 0
£120,001 - £130,000 2 1
£130,001 - £140,000 0 0
£140,001 - £150,000 0 0
£150,001 - £160,000 0 0
over £160,000 1 1
Total 119 102

(The salary of the Chairman and Chief Executive of the Commission was linked to that of a High Court Judge, and those of the other Local Government Ombudsmen were linked to the salaries of circuit judges; the salaries of staff are based on local and national government scales.)

Date Updated: 21/07/10