## Annual Report And Accounts 2014-15

# Annual Report And Accounts Of The National Archives 2014-15

including the Annual Report of the Advisory Council on National Records and Archives 2014-15
Annual Reports presented to Parliament pursuant to section 1(3) of the Public Records Act 1958
Accounts presented to the House of Commons pursuant to section 6(4) of the Government Resources and Accounts Act 2000
Accounts presented to the House of Lords by Command of Her Majesty Ordered by the House of Commons to be printed on 14 July 2015
This is part of a series of departmental publications which, along with the Main Estimates 2014-15 and the document *Public Expenditure: Statistical Analyses 2014*, present the Government's outturn for 2014-15 and planned expenditure for 2015-16.

## © Crown Copyright 2015

You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence v.3. To view this licence visit nationalarchives.gov.uk/doc/open-government-licence/version/3/ or email: psi@nationalarchives.gsi.gov.uk. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this document should be sent to us at: The National Archives, Kew, Richmond, Surrey, TW9 4DU +44 (0) 20 8876 3444 nationalarchives.gov.uk You can download this publication from our website at www.nationalarchives.gov.uk Print ISBN: ISBN 9781474120517 Web ISBN: ISBN 9781474120524 Printed in the UK by Williams Lea Group on behalf of the Controller of Her Majesty's Stationery Office ID: 29051511	
07/15
Printed on paper containing 75% recycled fibre content minimum

## Contents

Introduction	
6
Who we are	
8
What we do	
10
Directors' Report	
22
Strategic Report	
28
	
1	 Financial approach and results	
29
	
2	 Performance against our business priorities	
31
	
3	 Performance against our input indicators	
36
	
4	 Performance against our impact indicators	
37
	
5	 Core financial tables	
38
	
6	 Social, community, environmental and sustainability issues	
42
Remuneration Report	
44
Accounts 2014-15	
52
	
1	 Statement of Accounting Officer's responsibilities	
53
	
2	 Governance Statement	
54
	
3	 Audit certificate and report	
63
	
4	 Accounts summary	
65
	
5	 Notes to the Departmental Resource Accounts	
74
Annex A	Sustainability accounting and reporting	
96
Annex B	Advisory Council on National Records and Archives:	
104

	 	
12th Annual Report 2014-15
Annex C	Report of the Independent Complaints Reviewer for 2014-15	
114

## Introduction From The Chief Executive And Keeper To The Right Honourable Michael Gove Mp, Lord Chancellor, Secretary Of State For Justice

I am pleased to present the Annual Report and Accounts for The National Archives for 2014 ­
-15.

This year marks the successful completion of our business strategy *For the Record. For Good*. Over the last four years, we have firmly repositioned ourselves to build on our innovations and reputation for delivery, service and expertise as a modern national archive. *For the Record. For Good.* laid the foundation for us to further develop as the custodians of the public record for the future.

Four years ago, Discovery our online catalogue, did not exist. Today, it provides access to over 30 million descriptions of records, 10 million of which are held in over 2,500 archives across the UK. Since taking on the leadership role of the archive sector, our advocacy for archives of all kinds has generated more widespread awareness and understanding about why archives matter, and about the people who use and rely on them. The successful UK-wide campaign Explore Your Archive is supported by a number of influential stakeholders who join us in reiterating the significance of archives. Sustaining their materials and services is vital to their enormous contribution to the nation's heritage. 

We play a crucial role in supporting government in the preservation of digital and physical information. Our expertise, advice and guidance in best-practice record keeping is highly regarded across government and public sector bodies. This acknowledgement allows me, as Keeper of Public Records, to hold government to account and to assist them in their responsibilities; and Sir Alex Allan's review of record management recommends that The National Archives remains a fundamental part in helping departments with this commitment.

Over the last four years, we have expanded our online digitised records that showcase the rich variety of our holdings. Building on the successes of our digitisation programming, the crowdsourcing project Operation War Diary provides insight into the lives of soldiers on the front lines. Our online collections have connected us to even more audiences and we will continue to reach more people over the next four years. 

I would like to take this opportunity to thank Oliver Morley who was Chief Executive and Keeper until November 2013, and Clem Brohier who acted as Chief Executive and Keeper until the end of July 2014. It is greatly to their credit that we have come this far. On 1 April 2015, we began a new four-year journey with an audience-focussed strategy. In this strategy, we recognise that The National Archives is many things to different people. The core of our new strategy is our continued determination to meet the opportunities and challenges arising from the digital era. Digital technology and the preservation of various types and forms of historical information, has changed what it means to be an archive forever. As experts, we can lead the conversation across government and the public sector to actively help to find solutions in securing the future digital record, and making sure that it stays accessible and transparent. As we await Sir Alex Allan's review of digital records, we know that we are already in great shape to become a 'digital archive by design' for government, the public, the archive sector, researchers and academics. 

It goes without saying that we would not have made it this far without the continued dedication, professionalism and expertise of our staff. This is a very exciting time to be Chief Executive and Keeper of The National Archives, and I look forward to the challenges and opportunities ahead. Jeff James Chief Executive and Keeper 8 July 2015
Who we are

## Our Remit

The National Archives is a non-ministerial government department and an executive agency of the Ministry of Justice. We are the official archive for the UK government, and for England and Wales, and are the guardians of some of our most iconic national documents dating back more than 1,000 years.

Our collection is accessible to everyone all over the world. We are expert advisers in information and records management, a cultural and heritage institution, and an award-winning educational hub. We work to bring together and secure the future of the record, both digital and physical, for future generations. We are available to all audiences. 

## We Work To Define And Collect The Future Record, Transparently And Seamlessly

For more than 200 years, we have sustained the value of the record of government, allowing those who follow to learn from those who came before. The creation, capture and survival of vital public records is the ultimate guarantee of transparency. Our role is to define clearly what government departments need to keep in the digital era and to enable government to manage its information efficiently and effectively. As the leaders of the wider archive sector, we develop and promote standards and best practice in all aspects of archive management. Our support and advice helps archives across the UK to develop and enhance their services, facilities and collections for the benefit of the nation's archival heritage.

We innovate for optimal physical and digital preservation.

Our collections will always combine paper and digital records, and preservation of both is an obligation we accept willingly. Our highly valued expert research and practices have developed to meet the various preservation demands of these different types of record. We recognise the importance of sustainability in our work: reducing our carbon footprint and making the right investments for the future in our infrastructure, our organisation and the skills of our staff. We provide access to the record in ways that make it more open, more inclusive and more used than ever before. Every year we provide access to historical documents to millions of people worldwide, both online and in person at Kew, making us one of the largest and most successful archives in the world. We manage Crown copyright, delivering the definitive record for official publishing and we provide access online to all UK legislation. We build awareness of the record through education and outreach and we pursue opportunities to grow the breadth and coverage of the record online, engaging with the public, our private and public sector partners, and volunteers to develop the record together, for all.

## What We Do We Make The Record Accessible

We provide access to a tremendous variety of digital and physical records. We continue to work hard to connect, inform and inspire our audiences in many different ways.  
2014-15 was a remarkable year for archives. Over the last four years, we have gone from strength to strength in meeting the increased demand from audiences to access our records in a variety of creative and collaborative ways.

## We Open Up Access

We have transformed our online catalogue Discovery into the single point of access to 32 million descriptions of records; 22 million of these are in our collection, and over 10 million records in 2,500 other archives across the country. During 2014-15, we uploaded thousands of new or enhanced catalogue descriptions and made further developments to provide greater accessibility, following extensive collaborative research and user testing with participants across the UK. We completed the first phase of a new record-copying ordering system, developed in line with our commitment to providing documents online to customers worldwide. Last year, our documents were downloaded nearly 200 million times. We have embarked on projects and events throughout our First World War 100 centenary programme that reflect the colossal impact of the war on a global scale. To date, as part of Operation War Diary, the innovative online crowdsourcing project, over 12,200 'citizen historian' volunteers have tagged nearly 80,000 pages of unit war diaries, and have identified over 40,000 named individuals within them. During 2014-15, we released more digitised war diaries and service records of the Household Cavalry online and catalogued further officers' records. 

We created 'The First World War: A Global View', an interactive resource illustrating the conflict's international effect. In June, we hosted a conference 'War and Peace: diplomacy, espionage and the First World War'. The way people access and engage with us online is constantly evolving and we continue to adapt our services. The extensive redesign of our website means that it is more intuitive to use and provides better navigation to our records. On average, over a third of visits to our website are now from portable devices, and we have continued to improve the website in response to this change. We are never complacent and collaborate with our users to continually make improvements. We use various forms of social media to engage our audiences. Our blog provides access to the expertise of our many record specialists and provides behindthe-scenes perspectives on The National Archives. 

Last year, we published on average over 16 blog posts per month. Our Twitter followers have increased to almost 60,000, up by 69% on the previous year. Our @UnitWarDiaries and @UKWarCabinet Twitter feeds engaged over 13,000 followers with our documents. Our commercial and licensing partnerships allow us to continue to provide access to a rich mix of digitised collections without cost to the taxpayer, and to safeguard the physical record for the future. Last year, these ranged from prisoner of war records from the Jacobite Rebellion of 1715, to records from the early years of the Royal Air Force. In addition, over 8 million images were produced from our records by our own in-house digitisation experts, contractors, commercial, non-commercial and academic partners. 

everyday lives. In November, archives throughout the UK and Ireland threw open their doors to the public inviting everyone to immerse themselves in their materials, and held nationwide exhibitions and events. We led on the launch of the campaign via social media, and our Thunderclap reached over 750,000 people online. On Twitter, daily hashtag themes encouraged those working in archives to collaborate and promote the value of their services. 

Our users tell us that they consider The National Archives to be 'one of the best archival facilities' they have ever visited. During 2014-15, we provided over 640,000 physical records to our users in our reading rooms. The development of our new online reader registration service allows audiences to order documents ahead of their visit, giving them even faster access to our records. We responded to over 34,000 written requests. We continued to delight our customers and for the 16th consecutive year, we retained the government's Customer Service Excellence standard, going above and beyond its requirements.

Our trailblazing First World War 100 centenary programme featured prominently during the launch of the campaign in a live broadcast on *BBC Breakfast*, and the number of visitors to our website increased ten-fold in ten minutes. Our latest Files on Film competition, relating to our documents about the First World War, captured the imaginations and hearts of the filmmakers who entered. The judges were moved by how our records were interpreted by the winning entry noting the 'innocence of childhood portrayed in this film and the questions it raised over the point of war and the loss of a generation'.

Access to our collections comes in many creative and stimulating forms. In partnership with prominent publishers Bloomsbury, Ebury and Thames & Hudson, we published three popular titles: Maps: Their Untold Stories, Secrets of The National Archives and Inventions that Didn't Change the World. Our Writer of the Month series continues to attract audiences and this year included authors Kate Adie, Philippa Gregory and Ranulph Fiennes. In March 2015, The National Archives and its records were the centrepiece of an unprecedented ten-part BBC series. *Portillo's State Secrets* revealed some of the remarkable stories from the archives to an audience of over 1 million per episode.

## We Raise Awareness Of Our Holdings And Those Of Others

Our guidance, support and training helps people to realise their ambitions within the archive sector, and those from non-traditional backgrounds to become the next generation of archivists. We completed Opening Up Archives, the three-year traineeship programme that placed trainees in archives across the country. Supported by the Heritage Lottery Fund, the trainees engaged with local archives and communities, and undertook projects that developed the skills they needed to enter the archive profession. Building on the success of this breakthrough scheme, Transforming Archives started in summer 2014 and provides the same opportunities. It is hosted by archive organisations throughout England. 

As leaders of the archive sector, we advocate for archives of all types. Our second successful Explore Your Archive campaign, run in partnership with the Archives and Records Association, raised even greater awareness about their value and positive impact on 

## We Educate And Inform

Our education services teach children, students and educators about the thousands of years of history contained in the documents at The National Archives. Our expertise is recognised by the Department for Education, and we were commissioned to research and report on how digital and moving image collections could support the new National Curriculum for History. In collaboration with other leading educational, cultural and media specialists, the approved report will make recommendations about policy development and using archival collections to teach future generations, actively encouraging their interest in history and archives. Over the last four years, we have taught over 47,000 students on site at Kew, via videoconferencing and our virtual classroom; nearly 3,000 teachers off site at conferences, workshops and teacher training colleges; and over 1,700 different school groups. 

Magna Carta is one of the most important documents of all time and the foundation of our democracy. 2015 marks the 800th anniversary of Magna Carta. We hold two versions of Magna Carta: the 1225 copy will be included in Lincolnshire's Great Exhibition, a series of informative and commemorative events taking place across Lincoln later this year. The 1297 Magna Carta is on loan to the British Library as part of their Magna Carta exhibitions. 

We launched an interactive educational resource called 'Magna Carta: the emergence of Parliament'. Developed in partnership with UK Parliament, students from the Magna Carta school user-tested the resource and provided feedback. 'Magna Carta: the emergence of Parliament' demonstrates one of the many ways in which our educational plans and activities will continue to form a large part of our forward strategy. An amazing collection of personal correspondence captured by sailing ships during the 17th to 19th centuries brought delegates from all over the world to Kew to our first international academic conference on the High Court of Admiralty's 'Prize Papers'. This longforgotten correspondence (used as evidence by the Admiralty Court) includes British, American, Spanish and Dutch letters offering snapshots of ordinary lives which survive in very few other contexts. Those that have been opened include details of people's personal and business affairs. They will be explored and made even more accessible in years to come. Our records made huge waves in broadcast and online media with our annual release of two years' worth of records from 1985 and 1986. The release attracted journalists and academics from national and international media outlets. The big media stories covered included the miners' strike, government policies and strategies to tackle football hooliganism, and the defection of the Soviet Union agent Oleg Gordievsky.  
collaboration with higher education institutions. In February, we ran the annual Gerald Aylmer seminar which this year explored the concept of uncovering histories hidden within archives. It was hosted by the Institute of Historical Research (IHR), and ran in partnership with IHR, the Royal Historical Society and the British Library.

Last year, we loaned our documents to institutions as prestigious as the Ashmolean Museum, Oxford University and the Musée du Luxembourg in Paris, extending the reach of our documents in informing and educating national and international audiences. Our Crippen murder documents and photographs featured in 'Forensics: The Anatomy of Crime' at the Wellcome Collection, providing further context to the history and science of forensic medicines. Our map of the Malacca Strait educated audiences on the earliest concepts of mapping as part of the 'Maps and Mapping Festival' at the National Library of Singapore. 

## We Build Academic And Research Collaborations And Partnerships

We strengthened our research connections across the academic, higher education, and cultural and heritage communities. 

Last year, the Discovering Collections, Discovering Communities conference brought partners and collaborators from across the heritage and cultural sectors together to explore the contributions that archives can make to research. This successful event took place at Birmingham Library in partnership with Research Libraries UK (RLUK) and was supported by JISC, Arts Council England and the University of Birmingham Cadbury Research Library. This year, the conference will explore how the archive and academic sectors can work together to meet the challenges and opportunities for the sectors in the digital age. It will again run in partnership with RLUK and will be supported by the Wellcome Library, the British Library and JISC. 

The Arts and Humanities Research Council (AHRC)-funded research project 'England's Immigrants 1330-1550', a new database on immigration in medieval England, was completed in collaboration with the University of York and the Humanities Research Institute at the University of Sheffield. For the first time, researchers can find the details of over 65,000 immigrants who lived in England during this period by name, nationality, profession and place of residence. 

We partner with six AHRC-funded doctoral training partnerships with universities across the country, a key development in our support for the higher education sector and archives. As well as delivering postgraduate research skills and methodology training to PhD students, we are represented on four advisory boards and an executive board. We are also partnering with universities across the UK through collaborative doctorates, and we have further developed our work with students with a new student placement policy. 

In October, we hosted our very first academic open day and presented our research and academic engagement activities across the sectors, demonstrating our enthusiasm for further 

## We Preserve We Make Sure That The Public Record Is Protected For Future Generations In Whatever Format It Takes. We Preserve The Digital Record

We are at the forefront of digital preservation. Over the last four years, the techniques we've developed to preserve digital information have constantly evolved. As trusted custodians of the public record, we guide and support the rest of government in the selection and transfer of its digital records. Our digital records infrastructure can handle digitised and born-digital records using the most up-to-date methods to protect the data. It provides long-term storage of myriad digital information and we have already secured digital records of significant cultural and public interest, such as the Leveson Inquiry. The digital preservation landscape is ever-changing and we will continue to adapt by exploring solutions and working in partnerships to build on our infrastructure. Our Web Continuity team worked with government departments and collaborated with the Government Digital Service to make sure that older government content remains accessible as websites transitioned to the single government domain GOV.UK. Websites are preserved by the team each month, enabling users to be redirected to the UK Government Web Archive wherever content has not been migrated to GOV.UK. The UK Government Web Archive is used by more than 1 million people every month. We continually maintain and develop our archive of over 3,000 government websites and social media services - by far our largest collection - and an increasingly important part of the Open Government record and transparency agenda. We collected 336 million URLs and preserved an additional 10.3 terabytes of data. 

## We Preserve The Physical Record

Our largest conservation exercise to date saw the meticulous conservation treatment of one of the largest maps in our collection - an 18th-century map of Prince Edward Island - in preparation for display at a major exhibition in Canada in 2015. Researching and delivering this project significantly enhanced our understanding of preserving documents of this scale. It will contribute to improved practices across the archive sector, and inform further heritage science research. Our commercial activities contribute to how we sustain and preserve records of varying types. We successfully created images for various organisations such as glass plate negatives for BT, Rolls of Honour for St Paul's Cathedral and architectural plans for Marylebone Cricket Club. Over 290,000 images from the State Papers record series dating back to the 18th century were completed as a project for the academic publisher Cengage. The skills and expertise of our conservation and digitisation teams allows us to preserve a wealth of information and to advise other organisations. In September, representatives from The National Archives visited the Garrison Library in Gibraltar to share guidance and best practice about digitising their own newspaper collection. 

## We Help To Develop And Use Environmental, Archival And Energy-Saving Standards

We continue to work with archives of all kinds to learn more about their valuable collections and how we can support them. The Accessions to Repository survey captures details about newly acquired collections from other archive services. Last year, it had its largest ever response from archive repositories, local record offices, subject specialist repositories, and universities across the UK and Ireland. Accessions included an early 19th-century log book of the brigantine *Julian*, detailing a journey from Liverpool to West Africa; and a First World War nurse's autograph book containing signatures, illustrations and poems by wounded soldiers at the Red Cross Hospital in Taunton. Institutions taking part for the first time included the Wallace Collection.

Over the last four years, we have helped to develop sustainable and cost-effective approaches that make our environmental conditions acceptable to preserve our records, and those of other institutions. We were involved with the development of the Building Environment Simulation computer model that reduced energy use in partnership with the Institute of Sustainable Heritage, the Bartlett School of Architecture and University College London. We led the creation of a co-sponsored environmental standard for cultural heritage published by the British Standards Institution, with support from The Collections Trust, CyMAL and the former Museums, Libraries and Archives Council. 

Our archive sector leadership role sees us helping archives of all types to preserve and sustain their collections in compliance with a national framework of standards. The Archive Service Accreditation scheme supports archives in working to meet bestpractice standards and to protect the longevity of their collections. We lead this scheme in collaboration with the Welsh Government through its CyMAL: Museums, Libraries and Archives Wales division, the Public Record Office of Northern Ireland and the Scottish Council on Archives and National Records of Scotland. Last year, 26 archive services across the UK gained accreditation.

Most recently, we are engaged with the Knowledge Transfer Partnership scheme seeking to support UK businesses in improving their competitiveness, productivity and performance across the UK. The scheme partners companies to transfer knowledge and improve technology or skills. We collaborated with the IMC Group and together are developing a tool to assess environmental conditions with the aim of improving the preservation of records, reducing energy usage, and developing a performance benchmark. This work will be completed in February 2016. Since 2009, we have reduced the amount of energy used to power our building and repositories, moving from a Display Energy Certificate (DEC) rating of G (the least efficient) to a C in 2014. DECs raise awareness of energy use and inform visitors to public buildings about a building's energy performance, forming a part of the UK government's response to the European Performance of Buildings Directive.

Funding secured from the Heritage Lottery fund will see our Giving Value project help archives to find practical ways to sustain their services. Our creative Archiving the Arts programme is at the heart of conversations about the preservation of unique arts collections. Our evaluation of the impact of the government policy Archives for the 21st Century has spurred the sector into further thought and collaboration about its long-term sustainability. 

## We Value The Work Of Our Volunteers And Supporters

We are indebted to the extraordinary investment and participation of the volunteers and supporters of The National Archives who contribute hugely to a vast array of our projects and activities. Last year, volunteers helped us to preserve and rehouse more than 46,000 photographs of the UK coastline created by the Ministry of Defence from 1946 to 1966. Our volunteers based on site completed the arrangement of the second tranche of First World War unit war diaries. Our remote volunteers completed the transcription of over 36,000 crew lists of the Merchant Navy from 1915 in collaboration with the National Maritime Museum. These are just a few examples of the immense contribution of our volunteers.

Over the years, The Friends of The National Archives have generously participated and supported a wealth of our projects: from cataloguing projects indexing British Army discharge documents up to 1854, to jointly funding the digitisation of First World War military tribunals with the Federation of Family History Societies. Last year, they supported Unlocked Reflections - a creative poetry programme at Her Majesty's Prison Lewes, in partnership with the prison library, the Mass Observation Archives and East Sussex County Council. Lampson Unlocked: Fear God! Fear Nought! was a creative partnership project between The National Archives, the Victoria and Albert Museum and the Wren School Academy. The project, based on our documents featuring Oliver Locker-Lampson, involved students from the Wren School Academy creating interpretative art work and performances, which are available to view on our website.

## We Collect

We make sure that government and public sector bodies select and transfer the right documents to us for permanent preservation.

## 20-Year Rule We Provide Expert Advice And Support To Government

The National Archives supervises and guides other government departments in their selection and transfer of records to us for permanent preservation. We provide government with trusted advice and services, guaranteeing that the public record - whether digital or paper - is collected for the future. Over the last four years, we have continued to support government with best practice information management advice, as the focus on the transparency and openness of record management and departmental processes has increased. 

In 2013, government began its 10-year transition to the new 20-year rule. Working closely with colleagues across government, we made improvements to the records transfer process. The Record Transfer Report is an online visual representation of the information we collect from departments about the volume of their records ready for transfer to The National Archives. It helps us to keep track of government departments' progress in the selection and transfer of their legacy records; reinforces our role as the expert advisers who are best placed to support them with their responsibilities under the Public Records Act; and forms the basis of an annual assurance update to the Lord Chancellor. We published the latest reports in July 2014 and February 2015. On 1 January 2015, the second phase of the 20-year rule came into effect, covering the transfer to local places of deposit of records of local interest selected for permanent preservation. We are committed to supporting local authorities with this transition and we provided new guidance and a major programme of training across England and Wales, which started earlier this year and is set to continue. Through The National Archives, the Ministry of Justice will administer £7.1 million over 10 years to offset burdens this will place on local authorities.

## Sir Alex Allan Review And Digital Government Records

In March last year, Sir Alex Allan was commissioned by the Cabinet Secretary to carry out a review on the position of record keeping across government and how departments were managing the transition to the 20-year rule. Sir Alex's review emphasised the importance of our work and made a series of recommendations intended to give this greater prominence and traction across government. These included a renewed focus on compliance with the section 46 Code of Practice relating to the management of records across all public authorities, under the Freedom of Information Act 2000. Sir Alex also recommended that the Ministry of Justice supports the Chief Executive and Keeper of The National Archives to ensure that good records management policies are followed across government. Over the last year, our pioneering digital transfer project has made enormous progress in the development of new processes for collecting born-digital records from government departments through to their selection, transfer, and presentation on Discovery. We successfully tested this in March, and we will complete our pilot phase at the end of the financial year 2015-2016. We will continue to look for improvements over the next four years.

As part of the digital transfer project, we conducted reviews of 21 large government departments to gain an understanding of their 'digital readiness' and capacity to select, appraise, sensitivity review and transfer their digital records to us. From these reviews, we know that sensitivity review is a major challenge for many departments - however, we are already working to find solutions and have started exploring existing commercial software with the potential to support them in reviewing their records at scale. We will complete this trialling phase this summer. Our work has informed Sir Alex's current review of the management of digital records across government departments. We will continue to provide expert advice on the appraisal and selection of government digital records, applying the principles of digital continuity. Our information assurance and cyber security awareness training programme continues to guide senior colleagues across the public sector in the protection of their digital information.

## Assisting Government We Facilitate Transparency And Openness

We continue to make the law accessible to everyone. During 2014-15, close to 5,000 pieces of new legislation were published as governments delivered their respective legislative programmes, including passing substantial amounts of new legislation that repeal or revoke previous laws. In March, over 800 pieces were published and the month had one of the busiest days on record for new legislation publishing. We continued to support the Parliaments, Assemblies and governments of the UK, and delivered the timely and efficient publishing of new legislation in print and online on our award-winning service legislation.gov.uk. 

As highlighted by Sir Alex in his first review, our Information Management Assessment (IMA) programme is at the centre of reinforcing best practice in record and information management. Sir Alex recommended that the IMA programme continues to provide robust published assessments of all departments' information management capability, and urged the publication of a lessonslearned report based on the programme, which we did in March. Last year, we assessed the Department of Health and the Department for Work and Pensions, and conducted a reassessment of the Foreign and Commonwealth Office. We will continue to guarantee that public records are managed and collected effectively now, and for future generations.

We have worked with a wide range of public sector bodies - including those in the cultural sector - in preparation to implement European legislation on the re-use of public sector information. In October 2014, version 3 of the Open Government Licence launched successfully in line with the Creative Commons Attribution licence. Following research into 'big data' for law, we developed a new legislation data research infrastructure funded by the Arts and Humanities Research Council. We broadened our legislation open data services, adding support for the Akoma Ntoso international standard format which helped to move the UK to first place in the Global Open Data Index for Legislation.

There are countless uses for the information we collect and make accessible. Traces Through Time is an innovative, multi-disciplinary project that allows people to explore big historical datasets to identify individuals with and across them, allowing people to be traced through the records and for their personal stories to emerge from the data. It involved international research experience in the digital humanities, natural language processing, information science, data mining and linked data, with large, complex and diverse big data spanning over 500 years of British history. We worked with partners from the Institute of Historical Research, University of Brighton and University of Leiden. The Big Data for Law research project is giving legal researchers the tools they need to understand how the statute book works as a system, rather than as individual pieces of legislation. The delivery of a new online service - research.legislation. gov.uk - will enable new types of research that support the delivery of Good Law - the initiative to improve access to legislation for millions of users in collaboration with the Office of the Parliamentary Counsel. It forms a vital part of the government transparency agenda.

## Directors' Report Directors' Report About The National Archives

The National Archives' remit is summarised on page 9 of this report. 

## Management And Structure

During the year under review, the functions and duties of The National Archives were carried out by the following directorates.1

| Directorate    | Role            |
|----------------|-----------------|
| •	Delivers and develops services for all our visitors, making sure that our on site,                | Public Services |
| and Human      |                 |
| Resources (HR) |                 |

online and remote services work together effectively, following best practice and complying with relevant standards   
•	Provides expert advice, document production and other services using different channels 
- online; via letters, emails and by telephone; and face-to-face on site at Kew
•	Provides online and on site educational services to teachers and students and develops 
new audiences, particularly with those at risk of exclusion
•	Makes sure that staff are recruited, retained and developed in a way that facilitates

the needs of the business and lives up to our organisational values
•	Handles all aspects of recruitment and selection: pay; learning and development; 
employee relations, staff engagement and wellbeing 
•	Develops HR policy administration and advice for all those working

at The National Archives
•	Generates income for The National Archives through its commercial services

and develops new business opportunities

Customer and Business Development
•	Raises awareness of the records we hold and the services we provide,

using a combination of traditional and new media
•	Digitises our records, often working with external partners, to improve

availability and access 
•	Protects our reputation and brand

Directorate
Role

•	Provides professional leadership across government in information management

and policy 

Information Policy and Services

•	Guides government and public bodies on selecting records for permanent

preservation and transfer to The National Archives
•	Delivers The National Archives' leadership responsibilities for the wider archives

sector in England
•	Advises government, public bodies and local archives on information and archive policy •	Investigates complaints under public sector information Regulations and delivers 
standards through the Information Fair Trader Scheme
•	Promotes access to, and re-use of, public information through the UK Government 
Licensing Framework, legislation.gov.uk and supports the delivery of government's transparency commitments though the use of open standards and linked data
•	Maintains and develops our Information and Communication Technology (ICT) 

Technology and Preservation 2
infrastructure for the safe storage and delivery of information

•	Provides expertise on ICT and information assurance matters across the organisation 
•	Runs key projects to enhance our technological capability, and that of government,

to manage and deliver government information more effectively 
•	Develops tools and techniques to assist in the long-term survival of digital records •	Develops tools and technology to make it easier to access our collection •	Works to capture and preserve government's websites, data and digital documents •	Makes sure that our resources are allocated and used efficiently and effectively •	Enables our corporate systems to comply with best practice and meet the needs

Finance and Corporate Services

of the business
•	Makes sure that our statutory and legal responsibilities are discharged •	Manages and maintains our estate, providing a safe, secure and suitable

environment for staff and visitors

## Management Board 3 Public Sector Information Company Directorships And Other Significant Interests Held By Board Members

The National Archives has complied with the cost allocation and charging requirements set out by HM Treasury and in the Information Fair Trader Scheme guidance. 

Trevor Spires is a council member at the Arts and Humanities Research Council, which has been declared as a Related Party on page 93, note 19. 

## Audit Reporting Of Personal Data-Related Incidents

Details of our reporting of personal data-related incidents are shown in the Governance Statement on page 54.

## Published Sickness Data

The financial statements have been audited by the National Audit Office on behalf of the Comptroller and Auditor General. The audit fee was £48,000 (see page 82, note 4 to the accounts). The National Audit Office did not provide any non-audit services during the year. 

Staff sickness is 5.1 (2013-14: 4.7) days per member of staff (average).

## Risks And Uncertainties

Details of our risks and uncertainties are provided in the Governance Statement on page 54. 

As far as the Accounting Officer is aware, there is no relevant audit information of which the National Audit Office is unaware. The Accounting Officer has taken all steps necessary to keep themselves informed of any relevant audit information and to establish that the entity's auditors are notified of that information.

## Pension Liabilities

Present and past employees are covered by the provisions of the civil service pension arrangements. These are explained in more detail on page 49 in the Remuneration Report and on pages 88-89, notes 1.10 and 1.11 to the accounts. Benefit expenditure for civil service pensions is borne on the Civil Superannuation Vote. Where The National Archives bears the cost of pension provision for staff, it is by the payment of an annual accruing superannuation charge. The charge is shown under 'other pension costs' on page 80, note 3 to the accounts.

## Review Of Activities

A review of our activities during 2014-15 can be found on pages 10-21 of this report. 

## The National Archives' Governance

Details of The National Archives' governance can be found in the Governance Statement on page 54. Jeff James Accounting Officer 8 July 2015

## Strategic Report 1. Financial Approach And Results Preparation Of The Accounts

The accounts are prepared in accordance with the direction given by HM Treasury in pursuance of section 5(2) of the Government Resources and Accounts Act 2000. 

## Going-Concern Basis

The National Archives is financed by amounts drawn from the UK Consolidated Fund, approved annually by Parliament to meet the Department's Net Cash Requirement for the year. As with other government departments, the ongoing financing of The National Archives' activities and related liabilities is met by future grants from the UK Consolidated Fund and the application of future income, both to be approved annually by Parliament. Such approval for amounts required for 2015-16 has already been given. It has accordingly been considered appropriate to adopt a going-concern basis for the preparation of these financial statements.

## Financial Control

The National Archives is funded through Supply Estimates. These are the formal means by which government seeks authority from Parliament for its own spending each year. The National Archives' net total resources provision, for which authority was sought and approved during the year, was £35.1 million. A copy of our final budgetary control limits is available online at www.gov.uk/government/ publications/supplementary-estimates-2014-15. Cash requirements are forecast on a monthly basis and we liaise with HM Treasury to enable these funds to be made available through the Government Banking Service, which was The National Archives' banking facility during the reporting period. Management information is reported monthly to the Executive Team and at each Management Board meeting. We run a very effective delegated budget system where all budget holders go through regular reviews of all of their costs and revenue with their finance business partners and management accountants. These reviews enable us to respond quickly to variances, identify where action is required and make sure that the best use is made of public money. 

## Financial Position

In 2014-15, The National Archives' net resource outturn was £34.7 million compared to a budget allocation of £35.1 million. The non ring-fenced element, which is the controllable element of our expenditure, was managed to within £0.3 million of our allocation. In a year which saw the continuation of spending restrictions mainly in the area of staffing, marketing and communications, we reviewed and reprioritised our projects in order to enhance maximum value from our available funding. 2014-15 included £0.95 million of Resource DEL budget that had been carried forward from the previous year. This decision allowed time to further negotiate a contract relating to the replacement of our IT network and that we secured the best value for money. This reflects the effective financial controls which we continue to exercise. The ring-fenced outturn was £5.5 million compared to the budget of £5.6 million. Ring-fenced expenditure is mainly for depreciation and amortisation costs. The increase of £0.4 million from 2013-14 was primarily due to the revaluation of the buildings.

Annually Managed Expenditure (AME) was in line with the estimate; but £0.6 million higher than 2013-14. This was due to new provisions created in the year, £0.5 million of which were an onerous lease provision for office space within a government building that was vacated in Norwich. The total net capital expenditure matched our budgeted allocation of £2.0 million. A key element of our capital expenditure in the year has gone towards developing the infrastructure for a digital repository to enable us to meet the challenges of receiving large volumes of digital records into The National Archives. The net cash outturn for the year was in line with our net cash allocation of £30.9 million. The National Archives has no significant liabilities to report.

## Reconciliation Of Resource Expenditure Between Estimates, Accounts And Budget

2014-15

Estimate
Net Resource Outturn (Estimates)
35,073
Consolidated Fund Extra Receipts in the Operating Cost Statement
Net Operating Cost (Accounts)
35,073
34,670
34,823
33,863
Resource Budget Outturn (Budget)
35,073
34,670
34,823
33,863
of which: Departmental Expenditure Limits (DEL)
34,494
	 Annually Managed Expenditure (AME)
579
577
(40)
(52)

## Contingent Liabilities

There were no contingent liabilities at the reporting date.

## Statement Of Payment Practice

The National Archives operates in line with government's commitment to pay suppliers promptly. During 2014-15, we estimate that 98% were paid within agreed credit periods. The proportion of the amount owed to suppliers at the end of the reporting period to the total amount invoiced by suppliers during the year, expressed in number of days, represents 22 days, which is normal at the end of the year. 

| £000
         | £000
          | £000
         | £000
   |
|---------|----------|---------|---|
| 2014-15 | 2013-14  | 2013-14 |   |
| Outturn | Estimate | Outturn |   |
| 34,670  | 34,823   | 33,863  |   |
|         |          |         |   |
| -       | -        | -       | - |
|         |          |         |   |
| 34,093  | 34,863   | 33,915  |   |

## 2. Performance Against Our Business Priorities Strategic Priority 1:  We Will Redefine And Collect The Future Record, Transparently And Seamlessly

| Business priority How we were to achieve this   |
|-------------------------------------------------|
| 20-year rule                                    |
| response                                        |
| Make recommendations to ministers on            |
| the application of the 20-year rule to          |
| records of local interest and implement         |
| guidance and support to minimise impact         |
| of transfers on places of deposit and           |
| transferring bodies.                            |
| Achieved. The government agreed to              |
| extend the 20-year rule to records of local     |
| interest. The relevant secondary legislation    |
| came into force on 1 January 2015. £7.1         |
| million has been secured to pay for new         |
| burdens associated with this change.            |
| Achieved. The record transfer report was        |
| published in July 2014 and February 2015.       |
| Year three of the 20-year programme:            |
| continue to collect and publish data on         |
| records held by government departments,         |
| and on the rate of transfer to us.              |
| How we collect                                  |
| digital records                                 |
| We will provide an efficient, scalable          |
| and sustainable process for the transfer        |
| of digital records to the Digital Records       |
| Infrastructure.                                 |
| Achieved. A process to transfer born-digital    |
| records from government departments             |
| to The National Archives was developed,         |
| piloted and tested.                             |

## Strategic Priority 2: We Will Innovate To Ensure Optimal Physical And Digital Preservation

| Business priority How we were to achieve this   |
|-------------------------------------------------|
| A more                                          |
| sustainable Kew                                 |
| Achieved. Carbon reduction performance          |
| at 31 March 2015 against a 2009-10              |
| baseline year showed a 46% reduction.           |
| Continue to reduce carbon emissions             |
| at Kew from 2009-10 baseline levels,            |
| balancing the needs of records preservation     |
| with environmental concerns.                    |
| Achieved. The target of 60% of users            |
| on thin client technology was exceeded.         |
| Replace desktop PCs with thin client            |
| technology to reduce our environmental          |
| impact and simplify our ICT estate.             |
| Implement the Greening Government               |
| commitments and that sustainable                |
| development informs our policy-making.          |
| Achieved. The National Archives has             |
| met or exceeded all of the Greening             |
| Government Commitment targets.                  |
| Replace cooling towers at Kew site,             |
| delivering this capital project in two phases   |
| to timetable and within budget.                 |
| Achieved. Water and energy consumption          |
| monitoring indicates reductions of circa        |
| 20% of both utilities compared with the         |
| previous cooling towers.                        |
| Business priority How we were to achieve this   |
|-------------------------------------------------|
| Archiving                                       |
| the arts                                        |
| Survey the archives of arts organisations       |
| and practitioners to identify collections       |
| worthy of preservation and online               |
| discovery with provision of advice to           |
| owners and custodians.                          |
| Archives sector                                 |
| sustainability                                  |
| Operate a challenge fund to stimulate and       |
| support initiatives designed to enhance         |
| the sustainability of key archive collecting    |
| institutions.                                   |
| How we                                          |
| preserve digital                                |
| records                                         |
| Transfer all surrogate digitised document       |
| images held on varied media such as             |
| linear tape-open tapes and hard drives          |
| to the Digital Records Infrastructure in        |
| order to prevent loss or degradation of         |
| surrogate images and enable fast, efficient     |
| duplication of images.                          |
| Transforming                                    |
| The National                                    |
| Archives'                                       |
| Data Centre                                     |
| Infrastructure                                  |
| Transform the efficiency and supportability     |
| of The National Archives' Data Centre           |
| infrastructure by migrating services            |
| to modern new platforms, increase               |
| capacity based on business need, and            |
| enhance resilience to business continuity,      |
| capitalise on existing investments by           |
| virtualising services; replacing hardware       |
| which is beyond its serviceable life;           |
| decommissioning services which no longer        |
| create business value and introduce new         |
| tools to make managing our environment          |
| more effective.                                 |
| Ensuring the                                    |
| open digital                                    |
| record remains                                  |
| accessible                                      |
| Manage a contractual process for delivery       |
| of web archiving services required              |
| by government following an open                 |
| competition.                                    |
Achieved. The project was completed in March 2015. Achieved. Our investment of £50,000 leveraged partnership investment of £66,000 from other partners. Achieved. Partly achieved. We decommissioned over 25% of servers, which can be evidenced through reduced power consumption to the Data Centre facility. The end date for the Network and Data Centre Project is 30 June 2015. 
Superseded. A one-year extension to the existing contract was agreed in March 2015 to allow for a review of the service in 2015-16. 

## Strategic Priority 3: We Will Widen Our Funding Base To Guarantee Support In Tough Times

| Business priority How we were to achieve this   | Status              |
|-------------------------------------------------|---------------------|
| Achieved.                                       | Better Online       |
| capabilities                                    |                     |
| Provide and promote a more effective            |                     |
| document download service, including            |                     |
| remote access for approved institutional        |                     |
| users where appropriate; add new content        |                     |
| and develop new products which will             |                     |
| enable us to sustain our income from            |                     |
| document downloads.                             |                     |
| Historical design                               |                     |
| service                                         |                     |
| Achieved. The launch was accompanied            |                     |
| by an article in                                | World of Interiors. |
| Launch an online service allowing members       |                     |
| of the design community (designers/             |                     |
| design school students) to access historical    |                     |
| designs from the 'Board of Trade' Registers.    |                     |
| Achieved. We won over £1 million in             |                     |
| grants funding during the financial year.       |                     |
| Building                                        |                     |
| research                                        |                     |
| and funding                                     |                     |
| capability and                                  |                     |
| investment                                      |                     |
| Build and develop skills and capacity           |                     |
| across the organisation to deliver a greater    |                     |
| number of higher-quality bids to funding        |                     |
| and research councils. Maintain funding         |                     |
| and investment at sustainable levels.           |                     |

## Strategic Priority 4:  We Will Be Agile And Confident, Trusted And Efficient

| Business priority How we were to achieve this   | Status                       |
|-------------------------------------------------|------------------------------|
| Embed our values and use them to                |                              |
| guide our behaviour in all that we do.          |                              |
| Develop our                                     |                              |
| people and                                      |                              |
| culture                                         |                              |
| Achieved. We once again achieved 'High          |                              |
| Performer' status in the annual Civil           |                              |
| Service People Survey. Our engagement           |                              |
| index was 70% which represented a 2%            |                              |
| increase from the previous year.                |                              |
| Manage our headcount and cost                   |                              |
| of payroll flexibly and effectively             |                              |
| to meet our organisational priorities.          |                              |
| Achieved. Our core headcount target was         |                              |
| 550.5, and over the course of the year we       |                              |
| averaged 550.1.                                 |                              |
| Achieved.                                       | Further develop our learning |
| and development offering.                       |                              |

## Strategic Priority 5: We Will Provide A Record That Is More Open, Inclusive And Used Than Ever Before

| Business priority How we were to achieve this   | Status                                        |
|-------------------------------------------------|-----------------------------------------------|
| Making more                                     |                                               |
| records available                               |                                               |
| online                                          |                                               |
| Complete the digitisation and publication       |                                               |
| of a complete set of Naval Records cards        |                                               |
| comprising approximately 60,000 naval           |                                               |
| service records, testing the accession          |                                               |
| process on a whole series, identifying and      |                                               |
| processing closed records through the           |                                               |
| Freedom of Information  system.                 |                                               |
| Not achieved. The records were digitised        |                                               |
| but owing to technical issues the images        |                                               |
| needed re-processing before they could          |                                               |
| be transcribed. As a result the images          |                                               |
| were not published on Discovery during          |                                               |
| the financial year. It is expected that         |                                               |
| publication will take place during the first    |                                               |
| half of 2015-16.                                |                                               |
| Achieved.                                       | Digitise a second tranche of Unit War Diaries |
| (WO 95) ready for publication in 2015.          |                                               |
| Create and test tools to enable editing         |                                               |
| and semi-automated uploading of archive         |                                               |
| catalogues and related resources to             |                                               |
| Discovery across the archives sector and        |                                               |
| support archives in adopting new tools.         |                                               |
| Improve archives                                |                                               |
| sector online                                   |                                               |
| resources to                                    |                                               |
| further support                                 |                                               |
| the sector and                                  |                                               |
| improve user                                    |                                               |
| experience                                      |                                               |
| Partly achieved. Delays in completing work      |                                               |
| on the 2013-14 deliverables for this project    |                                               |
| and on recruiting the developer capacity        |                                               |
| required, held back the start of the planned    |                                               |
| work until late autumn 2014. A reduced          |                                               |
| set of deliverables was therefore agreed for    |                                               |
| 2014-15 in November 2014 which was met          |                                               |
| by the end of March 2015.                       |                                               |
| Meeting the                                     |                                               |
| needs of users                                  |                                               |
| of                                              | legislation.gov.                              |
| uk                                              |                                               |
| Improve access to legislation by bringing       |                                               |
| the revised versions of legislation on          |                                               |
| legislation.gov.uk                              | up-to-date through                            |
| expert participation.                           |                                               |
| Achieved. Editorial tools were tested, piloted  |                                               |
| and in full operation for final update and      |                                               |
| review tasks. The Department for Work           |                                               |
| and Pensions and the Welsh Government           |                                               |
| are using new editorial tools to revise their   |                                               |
| legislation. An editorial wiki was developed    |                                               |
| for the in-house team and participants.         |                                               |
| Achieved.                                       | Increase the rate of in-house team            |
| productivity by applying amendments             |                                               |
| directly­                                        | - also indirectly by training and             |
| supporting participants.                        |                                               |
| Achieved.                                       | Improve drafting of legislation by working    |
| with partners in government and the             |                                               |
| parliaments to develop a new drafting tool.     |                                               |
| Achieved.                                       | Devise strategy for future shape of           |
| legislation services to ensure value for        |                                               |
| money and to maximise benefits of               |                                               |
| cooperation with partners.                      |                                               |
Future public services
Review our current public services offering with a view to further developing and enhancing services to meet our customers' needs.
Deliver effective solutions for re-use of public sector information
The amended European Directive will be transposed to meet Commission deadlines and UK open government commitments. Working with officials in Scotland, Wales and Northern Ireland we will deliver an effective UK-wide solution and develop communication and guidance to ensure that public sector bodies are well placed to meet their responsibilities under the new UK legislation. Reinforce regulatory model under the public sector information transposition programme, aligning it to open data, transparency and access to information initiatives. Ensure solutions to reinforce official publishing responsibilities are embedded across government and deliver efficiencies and overall cost savings.
Deliver access to official publications ensuring that the needs of Parliament and 
users are met
Achieved. Achieved. On track to transpose by the legally required date by July 2015. Achieved. Achieved. 

## 3. Performance Against Our Input Indicators

| Input indicator                          | 2014-15 Outcome              | 2013-14 Outcome               |
|------------------------------------------|------------------------------|-------------------------------|
| 647,140                                  | 674,231                      | Original records delivered    |
| to on site users                         |                              |                               |
| 7                                        |                              |                               |
|                                          |                              |                               |
| 198,704,334                              | 204,122,320                  | Electronic records delivered  |
| to online users                          |                              |                               |
| 8                                        |                              |                               |
| Staff diversity                          |                              |                               |
| Women                                    | 54.5%                        | 49.3%                         |
| Top management women                     |                              |                               |
| 9                                        |                              |                               |
| 44.1%                                    | 48.6%                        |                               |
| Black and minority ethnic                | 20.2%                        |                               |
| 10                                       |                              |                               |
| 20.3%                                    |                              |                               |
| Disabled                                 | 10.8%                        |                               |
| 11                                       |                              |                               |
| 11.7%                                    |                              |                               |
| 70%                                      | 68%                          | Staff engagement (as reported |
| by the Civil Service People Survey)      |                              |                               |
| Time taken to deliver original           |                              |                               |
| records to on site users                 |                              |                               |
| 96.7% of documents delivered             |                              |                               |
| to users within one hour                 |                              |                               |
| 96.7% of documents delivered to          |                              |                               |
| users within one hour                    |                              |                               |
| 97.1% of enquiries responded             |                              |                               |
| to within statutory deadlines            |                              |                               |
| 98% of enquiries responded to            |                              |                               |
| within statutory deadlines               |                              |                               |
| Time taken to respond to Freedom         |                              |                               |
| of Information, Data Protection          |                              |                               |
| and Environmental Information Regulation |                              |                               |
| requests                                 |                              |                               |
| Total departmental spend                 |                              |                               |
| 12                                       |                              |                               |
| £31.2 million                            | £30.7 million                |                               |
| Staff sick absence                       | 5.1 days per member of staff |                               |
| (average)                                |                              |                               |
| 4.7 days per member of staff             |                              |                               |
| (average)                                |                              |                               |
| Outstanding effects                      |                              |                               |
| 13                                       |                              |                               |
| 164,891 outstanding effects              | 152,335 outstanding effects  |                               |
| on                                       | legislation.gov.uk           |                               |
| 233,738 new effects                      | 203,900 new effects          |                               |
| 157,940 researched effects               | 142,952 researched effects   |                               |
| 56,763 applied effects                   | 51,569 applied effects       |                               |
| 35,617 pieces                            | 65,545 pieces                | Number of physical            |
| records accessioned                      |                              |                               |
| 800 metres                               | 882 metres                   |                               |

7	 Over the last four years, the number of original records delivered to our on site users has increased by 12%.

8	 These numbers include downloads from our licensed internet associates. Over the last four years, the number

	 of digital records delivered to online users has increased by 55%. 
9	 This represents the percentage of women at Band G and above. 10	This represents the percentage of the 406 people that declared their ethnicity, rather than of the total staff. 11	This represents the percentage of the 371 people that declared their disability status, rather than of the total staff. 12	Total departmental spending is the sum of the resource outturn and the capital outturn less depreciation. 13	An 'effect' is an individual change made by one piece of legislation on another. Each effect corresponds to a set of editorial tasks that need to be completed to update the legislation on legislation.gov.uk. 'Outstanding' effects are those changes to legislation (since 2002) that still need to be applied in order for legislation.gov.uk to be brought up-to-date. The figure for 'new' effects is the total number of post-2002 changes, including those outstanding and those applied.

## 4. Performance Against Our Impact Indicators

| Input indicator                          | 2014-15 Outcome                     | 2013-14 Outcome   |
|------------------------------------------|-------------------------------------|-------------------|
| Web continuity                           | 29 million visits to UK             |                   |
| 14                                       |                                     |                   |
| Government                               |                                     |                   |
| Web Archive                              |                                     |                   |
| 25.9 million visits to UK Government     |                                     |                   |
| Web Archive                              |                                     |                   |
| 15                                       |                                     |                   |
| 15.7 million visitors to UK              |                                     |                   |
| Government Web Archive                   |                                     |                   |
| 14 million visitors to UK                |                                     |                   |
| Government Web Archive                   |                                     |                   |
| Carbon emissions from energy use in our  |                                     |                   |
| buildings  reduced by 15% compared with  |                                     |                   |
| 2012-13 (a 50% reduction compared with   |                                     |                   |
| Sustainable development                  | Carbon emissions from energy use    |                   |
| in our buildings increased by 8%         |                                     |                   |
| compared with 2013-14 (a 46%             |                                     |                   |
| reduction compared with 2009-10)         | 2009-10)                            |                   |
| Operational ('business as usual') waste  |                                     |                   |
| reduced by 5% compared with 2012-13      |                                     |                   |
| (a 31% reduction  compared with 2010-11) |                                     |                   |
| Operational ('business as usual')        |                                     |                   |
| waste increased by 7% compared           |                                     |                   |
| with 2013-14 (a 27% reduction            |                                     |                   |
| compared with 2010-11)                   |                                     |                   |
| In 2014-15, 63% of our total waste was   |                                     |                   |
| re-used or recycled                      |                                     |                   |
| In 2013-14, 54% of our total waste was   |                                     |                   |
| re-used or recycled                      |                                     |                   |
| Water consumption reduced by 20%         |                                     |                   |
| compared with 2013-14 (a 28%             |                                     |                   |
| reduction compared with 2009-10)         |                                     |                   |
| Water consumption reduced by 2%          |                                     |                   |
| compared with 2012-13 (a 14% reduction   |                                     |                   |
| compared with 2009-10)                   |                                     |                   |
| Customer satisfaction                    |                                     |                   |
| On site users                            | 95%                                 | 94%               |
| Online users                             | 59%                                 | 72%               |
|                                          | legislation.gov.uk                  | users             |
| 3 Information Management                 |                                     |                   |
| Assessments completed                    |                                     |                   |
| 2 Information  Management Assessments    |                                     |                   |
| reports published                        |                                     |                   |
| 16                                       |                                     |                   |
| Records and information                  |                                     |                   |
| management services used                 |                                     |                   |
| across government                        |                                     |                   |
| 5 Information Management                 |                                     |                   |
| Assessments  reports published           |                                     |                   |
| 3 action plans published                 | 2 action plans published            |                   |
| 2 annual review reports published        | 1 annual review report published    |                   |
| 6 formal review meetings undertaken      | 6 formal review meetings undertaken |                   |

Further details of how we measure our performance are in our four-year business plan, For the Record. For Good which is available from the UK Government Web Archive at webarchive.nationalarchives.gov. uk/20121211045135/http://nationalarchives.gov.uk/about/our-plans.htm

## 5. Core Financial Tables 17 18

£000
Table 1: Public spending                   
2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

Outturn
Outturn
Outturn
Outturn
Outturn
Outturn
Plans
Resource Departmental Expenditure Limits (DEL) Section A: The National Archives (DEL)
40,395
38,224
37,367
34,799
33,915
34,093
33,701
Total Resource DEL
40,395
38,224
37,367
34,799
33,915
34,093
33,701
Of which:
	 Pay
27,878
24,789
23,774
24,606
24,249
24,957
26,092
	 Net current procurement 19
7,120
7,756
8,160
5,207
4,481
4,217
2,278
	 Current grants and subsidies to the private sector and abroad
(87)
-
-
-
-
-
-
	 Depreciation
5,237
5,620
5,030
4,904
5,133
5,496
5,200
	 Other
247
59
403
82
50
(577)
131
Resource Annually Managed Expenditure (AME) Section B: The National Archives (AME)
(71)
(119)
(403)
(82)
(52)
577
(131)
Total Resource AME
(71)
(119)
(403)
(82)
(52)
577
(131)
Of which: Take-up of provisions
92
33
-
-
-
610
-
	 Release of provisions
(163)
(152)
(392)
(106)
(66)
(34)
(131)
	 Other
-
-
(11)
24
14
1
-
Total Resource Budget
40,324
38,105
36,964
34,717
33,863
34,670
33,570
Of which: Depreciation
5,237
5,620
5,030
4,904
5,133
5,496
5,200
Capital DEL Section A: The National Archives (DEL)
4,027
5,849
3,819
4,456
2,018
2,007
1,200
Total Capital DEL
4,027
5,849
3,819
4,456
2,018
2,007
1,200
Of which: Net capital procurement 20
4,027
5,849
3,819
4,456
2,018
2,007
1,200
Total Capital Budget
4,027
5,849
3,819
4,456
2,018
2,007
1,200
Total departmental spending 21
39,114
38,334
35,753
34,269
30,748
31,181
29,570
Of which: Total DEL
39,185
38,453
36,156
34,351
30,800
30,604
29,701
	 Total AME
(71)
(119)
(403)
(82)
(52)
577
(131)

## Table 2: Public Spending Control

Spending in Departmental Expenditure Limits Gross Expenditure
44,965
45,948
46,294
Gross Income
(10,872)
(11,800)
(11,800)
Net Resources
34,093
34,148
34,494
Net  Capital
2,007
2,030
2,030
Spending in Annually Managed Expenditure Provisions Gross Programme Resources
577
(25)
579
Total Resource Budget
34,670
34,123
35,073
Total Capital Budget
2,007
2,030
2,030
Less Depreciation
(5,496)
(5,600)
(5,600)
Total Departmental Spending
31,181
30,553
31,503

17	The outturn numbers are based on prior-year audited figures; however, the core financial tables section is not subject to NAO audit 18	Plan numbers reflect the 2010 and 2013 Spending Review settlements adjusted as per subsequent Budget and Autumn statements. The composition of the plan numbers shown are subject to change as internal plans are further developed 19	Net of income from sales of goods and services 20	Expenditure on tangible and intangible non-current assets net of sales 21	Total departmental spending is the sum of the Resource Budget and the Capital Budget less depreciation. Similarly, total DEL is the sum of the Resource Budget DEL and Capital Budget DEL less depreciation in DEL, and total AME is the sum of Resource Budget AME and Capital Budget AME less depreciation in AME

| 2014-15        | 
                    | 2014-15
                 |
|----------------|--------------------|-----------------|
| Outturn        | Original Budgetary | Final Budgetary |
| Control Limits | Control Limits     |                 |
£000

## Table 3: Capital Employed

| 2009-10
                                         | 2010-11
                 | 2011-12
         | 2012-13
         | 2013-14
                 | 2014-15
         | 2015-16
         |
|-----------------------------------------|-----------------|---------|---------|-----------------|---------|---------|
| Outturn                                 | Outturn         | Outturn | Outturn | Outturn         | Outturn | Plans   |
| Assets and liabilities on the statement |                 |         |         |                 |         |         |
| of financial position at end of year:   |                 |         |         |                 |         |         |
| Non-current assets                      |                 |         |         |                 |         |         |
| Intangible                              | 7,881           | 29,130  | 20,613  | 23,861          | 21,623  | 22,135  |
| Property, plant and equipment           | 100,298         | 106,756 | 134,013 | 132,333         | 140,642 | 150,849 |
| of which:                               |                 |         |         |                 |         |         |
| Land                                    | 18,200          | 18,200  | 18,200  | 18,200          | 18,200  | 18,200  |
| Buildings                               | 69,479          | 73,901  | 101,026 | 99,626 108,043  | 118,239 | 115,048 |
| Plant and machinery                     | 2,009           | 3,826   | 5,836   | 6,139           | 5,284   | 6,518   |
| Furniture and fittings                  | 5,304           | 5,053   | 4,907   | 4,744           | 4,742   | 4,604   |
| Transport equipment                     | 114             | 98      | 85      | 69              | 51      | 36      |
| Information technology                  | 3,365           | 2,902   | 1,930   | 1,301           | 2,825   | 2,126   |
| Assets under construction               | 1,827           | 2,776   | 2,029   | 2,254           | 1,497   | 1,126   |
| 100,298                                 | 106,756         | 134,013 | 132,333 | 140,642         | 150,849 | 146,825 |
| 111                                     | 349             | 433     | 550     | 123             | 420     | 400     |
| after more than one year                |                 |         |         |                 |         |         |
| Current assets                          | 2,819           | 1,749   | 3,015   | 2,802           | 3,160   | 2,511   |
| Creditors (<1 year)                     | (9,164)         | (6,732) | (7,795) | (6,939)         | (6,575) | (6,101) |
| Creditors (>1 year)                     | -               | (832)   | (999)   | (1,314)         | (1,121) | (779)   |
| Provisions                              | (691)           | (592)   | (93)    | (50)            | (25)    | (628)   |
| Capital employed within main department | 101,254 129,837 | 149,187 | 151,243 | 157,827 168,407 | 163,071 |         |
| Total capital employed                  | 101,254 129,837 | 149,187 | 151,243 | 157,827 168,407 | 163,071 |         |
£000
| 2009-10
                             | 2010-11
         | 2011-12
         | 2012-13
         | 2013-14
         | 2014-15
         | 2015-16
       |
|-----------------------------|---------|---------|---------|---------|---------|-------|
| Outturn                     | Outturn | Outturn | Outturn | Outturn | Outturn | Plans |
| Administration costs        |         |         |         |         |         |       |
| Section A:                  |         |         |         |         |         |       |
| The National Archives (DEL) |         |         |         |         |         |       |
| 12,960                      | 10,183  | 8,704   | 8,489   | 8,570   | 8,660   | 9,540 |
| Total administration budget | 12,960  | 10,183  | 8,704   | 8,489   | 8,570   | 8,660 |
| Of which:                   |         |         |         |         |         |       |
| Paybill                     | 7,570   | 5,777   | 5,242   | 5,249   | 5,243   | 5,241 |
| Expenditure                 |         |         |         |         |         |       |
| 5,436                       | 4,444   | 3,491   | 3,281   | 3,358   | 3,456   | 4,387 |
| Income                      | (46)    | (38)    | (29)    | (41)    | (31)    | (37)  |
| 2011-12
                                       | 2012-13
         | 2013-14
         | 2014-15
         | 2015-16
       |
|---------------------------------------|---------|---------|---------|-------|
| Outturn                               | Outturn | Outturn | Outturn | Plans |
| 22                                    |         |         |         |       |
| Staff numbers (average)               |         |         |         |       |
| 23                                    |         |         |         |       |
| Payroll staff (full-time equivalents) | 590     | 608     | 594     | 601   |
| Agency staff                          | 9       | 7       | 2       | 1     |
| Interim managers                      | Nil     | Nil     | Nil     | Nil   |
| Specialist contractors                | 8       | 15      | 11      | 7     |
| Consultants                           | Nil     | Nil     | Nil     | Nil   |
| Total                                 | 607     | 630     | 607     | 609   |

23	Average numbers are based on end of month numbers recorded over the 12-month period.

## 6. Social, Community, Environmental And Sustainability Issues Sustainable Development

•	Communicating regularly with our neighbours regarding •	Maintaining site drainage systems to meet our 

## Employment And Staff Engagement

We have significantly reduced the impact of our operations on the environment, achieving a 46% reduction in carbon emissions compared with the baseline year of 2009-10 and against the government target of a 25% reduction. This is a notable achievement, despite a modest increase in energy consumption in 2014-15 compared with 2013-14, largely due to the unseasonably mild autumn in 2014 requiring cooling and de-humidification to maintain the required repository storage environmental conditions. We have met or exceeded our obligations under the Greening Government Commitments, delivering reductions in total waste and water consumption. For further information please see Annex A, page 96.

The National Archives is committed to equal opportunities for all. Policies are in place to guard against discrimination and that there are no unfair or illegal barriers to employment or advancement within our organisation. Suitability for employment is based on skills, qualification and experience irrespective of race, age, gender, marital status, disability, sexual orientation, religious or political beliefs or opinions. The National Archives follows the Civil Service Code of Practice on the Employment of Disabled People which aims to make sure that there is no discrimination on the grounds of disability. 

During 2014-15 we delivered a number of projects to reduce the impact on the environment, including upgrading a proportion of our larger ventilation fans to high-efficiency units and completing the replacement of our external cooling towers. This work has contributed to the reduction in our water use and we have achieved a 28% reduction against an internal water savings target of 20%, compared with the baseline year of 2009-10. The development of two wells in our grounds has continued, with one now supplying water to the ponds and irrigation systems. The second well will be in use in 2015-16. We continued to support the local community in the following ways:

•	Maintaining the grounds and ornamental ponds at the 
The average full-time equivalent staff numbers over the year, as per table 5 on page 41 was 609 (2013-14: 607). On 31 March 2015, there were 649 employees (614 fulltime equivalents) on our payroll. These were made up of 
572 full-time equivalent permanent staff and 42 full-time equivalent staff on limited period appointments. 323 were female and 41 staff (10.8%) declared themselves as disabled and are recognised as having a disability in the context of the Equality Act 2010. Also, 84 staff (20.2% of the total who declared), identified themselves to be from ethnic minorities. We actively manage sickness absence and the average absence rate was 5.1 days per full-time equivalent (4.7 days in 2013-14). 

Kew site (known as the Pocket Park) as a local amenity that is open to the public from dawn till dusk 364 days a year and appears on the London Borough of Richmond upon Thames 'Green space' plan

•	Hosting the regular Police Liaison Group meetings with 
the Metropolitan Police Service Safer Neighbourhood Team and residents of the Kew ward
•	Providing space for the meetings of local residents' 
associations and groups
The civil service-wide recruitment freeze announced in May 2010 is still in place, which means that we have had to look at how best to use our talent across the organisation. We also have other people and skill resource requirements on a short-term, project-specific basis. These are fulfilled by temporary staff and contractors (see page 80, note 3 to the accounts, page 80) and this year were also subject to the recruitment freeze. 

•	Providing space for public meetings, arranged by Taylor 
Wimpey, the developer of the adjacent former HM Revenue and Customs site - with particular focus on 
We continue to encourage and support our staff, and invest in their wellbeing, with a particular focus on local residents, neighbours and ward councillors 

planned maintenance works, particularly when these occur at weekends obligations to the flood defence of the local area.
mental health awareness in 2014-15: a number of staff are recognised as mental health first aiders. Stress-related illness accounted for only 2.2% of the total sickness rate. For the fifth year, we participated in the Civil Service Staff Engagement Survey, achieving an overall engagement score of 70% and retaining our status as a civil service 'high performer'. The National Archives, through its senior managers, meets regularly with staff and Trade Union representatives in a number of ways, including Whitley Council, Health and Safety Committee and the Staff Forum.

## Equality And Diversity

In 2014 a new Equality and Diversity Coordinator was appointed for one year to review our equality and diversity strategy and to monitor progress against our action plan and departmental objectives. Our equality and diversity working group continues to oversee our action plan. Over the next year, The National Archives will develop a network of champions from across the organisation to reflect and progress our equality and diversity agenda. We continue to support positive action initiatives through our diversity education bursaries which assist candidates in gaining a qualification to help them enter the archives sector. The bursaries provide financial support and help to address the socio-economic barriers to entry that may exist for some candidates, and we are pleased to have awarded two in 2014. 

We have introduced a number of sustainable initiatives that monitor change and improved policy implementation throughout the organisation. The introduction of Prezi - a self-sustaining online software format - allows training, inductions and archives sector development to increase further awareness and understanding of equality and diversity aims and initiatives. The National Archives continues to explore ways in which our records and resources can be used to benefit communities and across societal groups. In 2015, our work involved an inspiring collaborative outreach and engagement with prisoners at Her Majesty's Prison Lewes who used our collections for research and education as part of a creative-writing, rehabilitative project. In September 2014, we were re-assessed by Investors in People - the organisation that recognises and accredits high-performing organisations dedicated to developing their staff. We retained our accreditation, receiving very positive feedback about our commitment to our developing the needs and wants of our staff. The National Archives' annual diversity week highlighted the ongoing work staff do to represent diverse histories, as well as educate about the issues and barriers people often face when excluded from mainstream culture.

## Health And Safety

Our Health and Safety Policy explains that we comply with our legal obligations and sets out the actions we take to maintain a safe and healthy environment. The National Archives has a full-time Health and Safety Advisor who works to provide a safe environment for visiting members of the public and for staff. The Health and Safety Committee includes staff representatives from operational areas, technical areas, Human Resources, Estates, Security, and the Trades Unions, as well as senior management. Committee members are also involved in the investigation of any reported accidents or incidents and contribute to recommendations arising from them. In 2014, the number of reported accidents and noninjury near misses remained low. We continually review procedures and improve where necessary. Our procedures for managing members of the public during an emergency are thorough and well-documented. We train our staff in evacuation procedures and assess the efficiency at every opportunity.

We have a team of 20 fully qualified first aiders who have volunteered to be called upon at any time they are on the premises. The formal training they complete is augmented by training sessions held throughout the year in line with current national first aid practices and regulations. The Health and Safety Advisor prepares an annual report on activity relating to health and safety. The report provides statistics on accidents and incidents especially those which are reportable under Reporting of Injuries, Diseases and Dangerous Occurrences Regulations. Jeff James Accounting Officer 8 July 2015

## Remuneration Report Senior Civil Service Grades

The remuneration of senior civil servants is set by the Prime Minister following independent advice from the Review Body on Senior Salaries. In reaching its recommendations, the Review Body has regard to the following considerations: 

•	The need to recruit, retain and motivate

suitably-able and qualified people to exercise their different responsibilities. 
•	Regional/local variations in labour markets and their 
effects on the recruitment and retention of staff.
•	Government policies for improving public services, 
including the requirement on departments to meet the output targets for the delivery of departmental services.
•	The funds available to departments as set out in the 
government's departmental expenditure limits.
•	Government's inflation target. 
The Review Body takes account of the evidence it receives about wider economic considerations and the affordability of its recommendations. Further information about the work of the Review Body can be found at www.ome.uk.com. 

## Service Contracts

Civil service appointments are made in accordance with the Civil Service Commissioners' Recruitment Code. The code requires appointments to be made on merit, on the basis of fair and open competition, but also includes the circumstances when appointments may otherwise be made. The Constitutional Reform and Governance Act 2010 requires civil service appointments to be made on merit on the basis of fair and open competition. The Recruitment Principles published by the Civil Service Commission specify the circumstances when appointments may be made otherwise. Unless otherwise stated below, the officials covered by this report hold appointments which are openended. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme. No such compensation payments were made during the year. Clem Brohier was appointed Acting Chief Executive and Keeper with effect from 1 November 2013 until 28 July 2014. Jeff James' appointment as Chief Executive and Keeper was confirmed by the Ministry of Justice on 29 July 2014. Trevor Spires CBE was appointed as a Non-executive Director on a three-year contract from 8 February 2009 until 7 February 2012. His contract was renewed on 8 February 2012 for a further three-year period to 7 February 2015. Lisa Jardine CBE was appointed as a Non-executive Director on a three-year contract from 1 December 2011 to 28 November 2014. Peter Phippen and Fiona Ross were appointed as Non-executive Directors on a three-year contract from 6 November 2012 to 5 November 2015. Service contracts can also be terminated under the standard procedures of the Civil Service Management Code. Further information about the work of the Civil Service Commissioners can be found at www.civilservicecommission.org.

## Salary, Bonus And Pension Entitlements

The following sections provide details of the remuneration and pension interests of the most senior officials (i.e. board members) of the Department. The Remuneration Committee consisted of four Non-executive Directors: Lisa Jardine (Chair), Trevor Spires, Peter Phippen and Fiona Ross. The policy on remuneration of senior civil servants, and the deliberations of the Remuneration Committee The monetary value of benefits in kind covers any benefits provided by the Department and treated by HM Revenue and Customs as a taxable emolument. 

follow the guidance and recommendations of the Review Body on Senior Salaries. Senior staff have written objectives agreed with the Chief Executive and Keeper. Performance against these objectives, and against The National Archives' values, forms the basis of their formal appraisal and subsequent pay and bonus recommendations. This information is used by the Remuneration Committee to determine pay awards according to the Review Body on Senior Salaries' annual recommendations. 

Bonuses are based on performance levels attained and are made as part of the appraisal process. Bonuses paid in a year relate to performance in the preceding year. As such, bonuses reported in 2014-15 relate to performance in 2013-14 and the comparative bonuses reported for 2013-14 relate to performance in 2012-13. The salary and pension entitlements and the value of any taxable benefits in kind of the Chief Executive and Keeper, Directors and Non-executive Directors of The National Archives who are members of the Management Board, were as follows (audited):
Salary includes gross salary; overtime; reserved rights to London weighting or London allowances; recruitment and retention allowances; and any other allowance to the extent that it is subject to UK taxation. Percentage salary increases, and performance bonuses, are agreed by the Remuneration Committee in accordance with strict guidance and parameters set each year by the Cabinet Office. 

| *Name              | Salary
           | Salary    | Bonus
          | Bonus        | 
   |
|--------------------|-----------|-----------|----------|--------------|---|
| 2014-15            | 2013-14   | 2014-15   | 2013-14  |              |   |
| £000 in            | £000 in   | £000 in   | £000 in  |              |   |
| bands of           | bands of  | bands of  | bands of | (to  nearest |   |
| £5,000             | £5,000    | £5,000    | £5,000   |              |   |
| N/A                | 60-65     | N/A       | -        | N/A          | - |
| (full-year         |           |           |          |              |   |
| equivalent         |           |           |          |              |   |
| Oliver Morley      |           |           |          |              |   |
| Chief Executive    |           |           |          |              |   |
| and Keeper (to 31  |           |           |          |              |   |
| October 2013)      | (100-105) |           |          |              |   |
| 105-110            | 95-100    | 5-10      | 5-10     | -            | - |
| (full-year         |           |           |          |              |   |
| equivalent         |           |           |          |              |   |
| 105-110)           |           |           |          |              |   |
| Clem Brohier       |           |           |          |              |   |
| Acting Chief       |           |           |          |              |   |
| Executive and      |           |           |          |              |   |
| Keeper (from 1     |           |           |          |              |   |
| November 2013 to   |           |           |          |              |   |
| 28 July 2014)  and |           |           |          |              |   |
| Director, Finance  |           |           |          |              |   |
| and Corporate      |           |           |          |              |   |
| Services           |           |           |          |              |   |
| 75-80              | 75-80     | 10-15     | 5-10     | -            | - |
| Commercial         |           |           |          |              |   |
| Director           |           |           |          |              |   |
| Benefits    | Benefits    | Pension     | Pension    | Total    | Total    |
|-------------|-------------|-------------|------------|----------|----------|
| in kind     | in kind     | (£000)      | (£000)     |          |          |
| 2014-15     | 2013-14     |             |            |          |          |
| benefits    |             |             |            |          |          |
| 2014-15     |             |             |            |          |          |
| benefits    |             |             |            |          |          |
| 2013-14     | 2014-15     | 2013-14     |            |          |          |
| £           | £           | £000        | £000       | £000 in  | £000 in  |
| (to nearest | (to nearest | (to nearest | bands of   | bands of |          |
| £100)       | £100)       | £1,000)     | £1,000)    | £5,000   | £5,000   |
| *Name               | Salary
            | Salary    | Bonus
          | Bonus    | 
       |
|---------------------|------------|-----------|----------|----------|-------|
| 2014-15             | 2013-14    | 2014-15   | 2013-14  |          |       |
| £000 in             | £000 in    | £000 in   | £000 in  |          |       |
| bands of            | bands of   | bands of  | bands of |          |       |
| £5,000              | £5,000     | £5,000    | £5,000   |          |       |
| 75-80               | 20-25      | -         | 5-10     | -        | -     |
| (full-year          | (full-year |           |          |          |       |
| equivalent          | equivalent |           |          |          |       |
| 115-120)            | 85-90)     |           |          |          |       |
| Jeff James          |            |           |          |          |       |
| Chief Executive     |            |           |          |          |       |
| and Keeper (from    |            |           |          |          |       |
| 29 July 2014)       |            |           |          |          |       |
| and Director,       |            |           |          |          |       |
| Operations and      |            |           |          |          |       |
| Services (to 24     |            |           |          |          |       |
| June 2013)          |            |           |          |          |       |
| 85-90               | 80-85      | -         | -        | -        | -     |
| Ottaway-Searle      |            |           |          |          |       |
| Director, Public    |            |           |          |          |       |
| Services and        |            |           |          |          |       |
| Human Resources     |            |           |          |          |       |
| 15-20               | 90-95      | -         | -        | -        | -     |
| (full-year          |            |           |          |          |       |
| equivalent          |            |           |          |          |       |
| 90-95)              |            |           |          |          |       |
| David Thomas        |            |           |          |          |       |
| Director,           |            |           |          |          |       |
| Technology and      |            |           |          |          |       |
| Preservation and    |            |           |          |          |       |
| Chief Information   |            |           |          |          |       |
| Officer (to 31 July |            |           |          |          |       |
| 2014). Part-time    |            |           |          |          |       |
| hours from 1 April  |            |           |          |          |       |
| 2014                |            |           |          |          |       |
| 90-95               | 90-95      | -         | -        | -        | -     |
| Director,           |            |           |          |          |       |
| Information Policy  |            |           |          |          |       |
| and Services        |            |           |          |          |       |
| 10-15               | N/A        | -         | N/A      | -        | N/A   |
| (full-year,         |            |           |          |          |       |
| full-time           |            |           |          |          |       |
| equivalent          |            |           |          |          |       |
| 60-65)              |            |           |          |          |       |
| Dr Valerie Johnson  |            |           |          |          |       |
| Interim Director    |            |           |          |          |       |
| of Research and     |            |           |          |          |       |
| Collections (from   |            |           |          |          |       |
| 19 January 2015).   |            |           |          |          |       |
| Disclosure relates  |            |           |          |          |       |
| to current role     |            |           |          |          |       |
| 10-15               | 10-15      | -         | N/A      | -        | -     |
| Jardine CBE         |            |           |          |          |       |
| Non-executive       |            |           |          |          |       |
| Director            |            |           |          |          |       |
| 10-15               | 10 - 15    | -         | N/A      | -        | -     |
| Non-executive       |            |           |          |          |       |
| Director            |            |           |          |          |       |
| 10-15               | 10 - 15    | -         | N/A      | 3,100    | 2,500 |
| Non-executive       |            |           |          |          |       |
| Director            |            |           |          |          |       |
| Trevor Spires CBE   |            |           |          |          |       |
| Non-executive       |            |           |          |          |       |
| Director            | 10-15      | 10 - 15   | -        | N/A      | 1,300 |

*	In addition to the above directors, as Interim Chief Technology Officer, Rachel Murphy was remunerated through a third party agency from the period 8 September 2014 to 27 March 2015. Fees of £90k-95k were paid in the year (full-year equivalent £190k-£195k), net of irrecoverable VAT and exclusive of agency fees.

| Benefits     | Benefits    | Pension     | Pension     | Total    | Total    |
|--------------|-------------|-------------|-------------|----------|----------|
| in kind      | in kind     | (£000)      | (£000)      |          |          |
| 2014-15      | 2013-14     |             |             |          |          |
| benefits     |             |             |             |          |          |
| 2014-15      |             |             |             |          |          |
| benefits     |             |             |             |          |          |
| 2013-14      | 2014-15     | 2013-14     |             |          |          |
| £            | £           | £000        | £000        | £000 in  | £000 in  |
| (to  nearest | (to nearest | (to nearest | (to nearest | bands of | bands of |
| £100)        | £100)       | £1,000)     | £1,000)     | £5,000   | £5,000   |
| Name                          | Accrued pension
                       | Real increase /   |
|-------------------------------|-----------------------|-------------------|
| at pension age as             | (decrease) in pension |                   |
| at 31/03/15 and               | and related lump      |                   |
| related lump sum              | sum at pension age    |                   |
| £000 in bands of              | £000 in bands of      |                   |
| £5,000                        | £2,500                |                   |
| N/A                           | N/A                   | N/A               |
| Chief Executive and Keeper    |                       |                   |
| (to 31 October 2013)          |                       |                   |
| 15-20                         | 0-2.5                 | 319               |
| Acting Chief Executive and    |                       |                   |
| Keeper (from 1 November       |                       |                   |
| 2013 to 28 July 2014) and     |                       |                   |
| Director,  Finance and        |                       |                   |
| Corporate Services            |                       |                   |
| 0-5                           | 0-2.5                 | 18                |
| Chief Executive and Keeper    |                       |                   |
| (from 29 July 2014) and       |                       |                   |
| Director, Operations and      |                       |                   |
| Services (to 24 June 2013).   |                       |                   |
| Disclosure relates to current |                       |                   |
| role.                         |                       |                   |
| 5-10                          | 0-2.5                 | 75                |
| Commercial Director           |                       |                   |
| 10-15                         | 0-2.5                 | 185               |
| Director, Public Services and |                       |                   |
| Human Resources               |                       |                   |
| 50-55                         | 0-2.5                 |                   |
| plus 100-105                  | plus (0-2.5)          |                   |
| lump sum                      | lump sum              |                   |
| David Thomas                  |                       |                   |
| Director, Technology and      |                       |                   |
| Preservation and Chief        |                       |                   |
| Information Officer (to 31    |                       |                   |
| July 2014)                    |                       |                   |
| 20-25                         | 0-2.5                 |                   |
| plus 60-65                    |                       |                   |
| Carol Tullo                   | Director,             |                   |
| Information Policy and        |                       |                   |
| Services                      | lump sum              |                   |
| plus 2.5-5                    |                       |                   |
| lump sum                      |                       |                   |
| 10-15                         | 0-2.5                 | 134               |
| Interim Director of Research  |                       |                   |
| and Collections (from 19      |                       |                   |
| January 2015)                 |                       |                   |
| N/A                           | N/A                   | N/A               |
| Non-executive Director        |                       |                   |
| N/A                           | N/A                   | N/A               |
| Non-executive Director        |                       |                   |
| N/A                           | N/A                   | N/A               |
| Non-executive Director        |                       |                   |
| N/A                           | N/A                   | N/A               |
| Non-executive Director        |                       |                   |

There were no employer contributions to partnership pension accounts in respect of any of the above.

|         | CETV  at 31/03/15   | CETV  at 31/03/14 Real increase in CETV   |
|---------|---------------------|-------------------------------------------|
| Nearest | Nearest             | Nearest                                   |
| £000    | £000                | £000                                      |
| 1,094   | 1,087               | 1                                         |
| 458     | 416                 | 19                                        |

## Pay Multiples

| Band of highest-paid Director's remuneration (£)   | 190-195   | 110-115   |
|----------------------------------------------------|-----------|-----------|
| Median total remuneration (£)                      | 26,398    | 26,574    |
| Ratio                                              | 8.4       | 4.2       |

Reporting bodies are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the median remuneration of the organisation's workforce. The full-year equivalent remuneration of the highest-paid Director in The National Archives in the financial year 2014-15 was £190k-£195k (2013- 14: £110-£115k) - actual fees of £90k-95k were paid in the year, net of irrecoverable VAT and exclusive of agency fees. This relates to the Interim Chief Technology Officer who was contracted for a period of just under seven months to review The National Archives' information and communication technology infrastructure, services and capabilities. This full-year equivalent renumeration was 8.4 times the median remuneration of the workforce, which was £26,398 (2013-14: £26,574). The 4.2 increase in this ratio is attributable to annualising the cost of the Interim Chief Technology Officer. Excluding the Interim Chief Technology Officer, the highest-paid director was £115k-£120k (2013-14: £110-£115k), which was 4.5 times higher than the median remuneration of the workforce (2013-14: 4.2 times). This is 0.3 higher than in the previous year as the number of archive trainees increased in 2013-14. In 2014-15, nil (2013-14: nil) employees received remuneration in excess of the highest-paid director. Total remuneration includes salary, non-consolidated performance-related pay, benefits-in-kind as well as severance payments. It does not include employer pension contributions and the cash equivalent transfer of pensions.

2014-15
2013-14

## Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements.  From 30 July 2007, civil servants may be in one of four defined benefit schemes: either a final salary scheme (Classic, Premium or Classic Plus), or a whole career scheme (Nuvos). These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year.  Pensions payable under Classic, Premium, Classic Plus and Nuvos are increased annually in line with Pensions Increase legislation. Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a 'money purchase' stakeholder pension with an employer contribution (partnership pension account). Employee contributions are salary-related and range between 1.5% and 6.85% of pensionable earnings for Classic and 3.5% and 8.85% for Premium, Classic Plus and Nuvos.  Employee contributions will change from 1 April 2015. Classic offers a pension based on 1/80th of final pensionable earnings for each year of reckonable service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. Premium is a pension based on 1/60th of final pensionable earnings for each year of reckonable service. Unlike Classic, there is no automatic lump sum.  Classic Plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per Classic and benefits for service from October 2002 worked out as in Premium. In Nuvos members build up a pension based on their pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the 

## Cash Equivalent Transfer Values (Cetv)

member's earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. In all cases members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004.

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member's accrued benefits and any contingent spouse's pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. 

The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 3% and 12.5% (depending on the age of the member) into a stakeholder pension product chosen by the employee from a panel of three providers. The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer's basic contribution). Employers also contribute a further 0.8% of pensionable salary to cover the cost of centrally provided risk benefit cover (death in service and ill-health retirement). The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of Classic, Premium and Classic Plus and 65 for members of Nuvos.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost.  CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Further details about the Civil Service pension arrangements can be found at the website civilservice.gov.uk/pensions   

## Real Increase In Cetv

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

## Review Of Tax Arrangements Of Public Sector Appointees Table 1: For Off-Payroll Engagements As Of 31 March 2015, For More Than £220 Per Day And That Last Longer Than Six Months

| Number of existing engagements as of 31 March 2015                             |   5 |
|--------------------------------------------------------------------------------|-----|
| of which:                                                                      |     |
| Number that have existed for less than one year at time of reporting           |   2 |
| Number that have existed for between one and two years at time of reporting    |   3 |
| Number that have existed for between two and three years at time of reporting  |   0 |
| Number that have existed for between three and four years at time of reporting |   0 |
| Number that have existed for four or more years at time of reporting           |   0 |

All of the above off-payroll engagements have been subject to a risk based assessment as to whether assurance is required that the individual is paying the correct amount of tax and, where necessary, assurance has been sought.

## Table 2: For All New Off-Payroll Engagements, Or Those That Reached Six Months In Duration, Between 1 April 2014 And 31 March 2015, For More Than £220 Per Day And That Last Longer Than Six Months

| 10                                                                                       |    Number of new engagements, or those that reached six months in duration between
 |
|------------------------------------------------------------------------------------------|----|
| 1 April 2014 and 31 March 2015                                                           |    |
| Number of the above which include contractual clauses giving the department the right to |    |
| request assurance in relation to income tax and National Insurance obligations           | 10 |
| Number for whom assurance has been requested*                                            |  9 |
| Of which:                                                                                |    |
| Number for whom assurance has been received                                              |  9 |
| Number for whom assurance has not been received                                          |  0 |
| Number that have been terminated as a result of assurance not being given                |  0 |

## Table 3: For Any Off-Payroll Engagements Of Board Members, And/Or Senior Officials With Significant Financial Responsibility, Between 1 April 2014 And 31 March 2015

Number of off-payroll engagements of board members, and/or senior officials with significant financial responsibility, during the financial year.
1
Number of individuals that have been deemed 'board members, and/or, senior officials with significant financial responsibility', during the financial year. This figure should include both off-payroll and on-payroll engagements.
8

*	Tax assurance had not yet been sought for one of the ten engagements identified; this is because the engagement had been for a period of less than six months as at 31 March 2015 and Cabinet Office guidance specifies that tax assurance does not need to be sought until the six-month point is reached. 

## Accounts 2014-15 1. Statement Of Accounting Officer'S Responsibilities

Under the Government Resources and Accounts Act 2000, HM Treasury has directed The National Archives to prepare, for each financial year, accounts detailing the resources acquired, held, or disposed of during the year and the use of resources by the Department during the year. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of The National Archives and of its net resource outturn, resources applied to objectives, recognised gains and losses and cash flows for the financial year. In preparing the accounts, the Accounting Officer is required to comply with the requirements of the *Government Financial Reporting Manual* and in particular to: 

•	Observe the Accounts Direction issued by HM 
Treasury including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis. 
•	Make judgments and estimates on a reasonable basis. •	State whether applicable accounting standards, 
as set out in the Government Financial Reporting 
Manual, have been followed, and disclose and explain any material departures in the accounts.
•	Prepare the accounts on the going-concern basis.
HM Treasury has appointed Jeff James, Chief Executive and Keeper as Accounting Officer of The National Archives with responsibility for preparing The National Archives' accounts and for transmitting them to the Comptroller and Auditor General. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which an Accounting Officer is answerable, for keeping proper records and for safeguarding the Department's assets, are set out in the Accounting Officers' Memorandum, issued by HM Treasury and published in Managing Public Money.

## 2. Governance Statement

The National Archives Management Board consists of the Chief Executive, the five Directors and up to four Non-executive Directors 24. The Management Board meets at least ten times a year and is the main governance board for The National Archives.

Executive and five Directors 25. The Head of the Chief Executive's Office also attends Executive Team meetings which are normally held weekly. The role of the Executive Team was reviewed and updated in January 2015 and is to: 

•	Fulfil The National Archives' statutory 
The Board agrees The National Archives' strategic direction, and provides the Chief Executive with specific advice, support and challenge on: 

responsibilities and deliver its strategic and business priorities 
•	Drive and manage improvements in business

•	Our purpose, public task and values 
and financial performance
•	The robustness of our input and impact indicators 
•	Drive innovation, transparency and efficiencies

and other business performance measures 
•	Our plans, year-on-year business priorities, 
that support delivery of strategic objectives and give value for money
performance and key risks 
•	Identify high-level risks, ensuring their effective 
•	Our accountability to stakeholders, including 
mitigation and business continuity
stewardship of public funds 
•	Review and agree corporate policies
•	The effectiveness of our internal control 
•	Direct and support managers to deliver key 
arrangements 
investments and major projects 
•	Our key investment decisions. 
•	Lead strategic staff management and resourcing. Directors are responsible for cascading summaries of Executive Team business to the rest of the organisation.
I am grateful to Clem Brohier who, as Acting Chief Executive and Keeper for the first four months of the reporting year, made sure that governance and accountability remained at the forefront of Board discussions and business decisions, thereby ensuring a continuity of approach throughout the year. Supporting and informing the work of the Management Board are three additional governance bodies: the Executive Team, the Audit Committee and the Remuneration Committee. The Executive Team is the executive decision-making body of the organisation. It consists of the Chief The business of the Executive Team is managed in a way that is inclusive, regularly inviting business updates from the staff members responsible for delivery. Informal challenge encourages staff to bring real issues to the Team's attention. In addition, directors attend 'question and answer' sessions. These events can be chaired by a Non-executive Director and are held quarterly. All members of staff are invited to attend and may ask any question about the running of the organisation or current concerns. Questions may be submitted anonymously in order to encourage openness. 

All Board members meet formally and informally with other senior managers and are members of specific high-profile project and programme boards as required. We have an active group of Non-executive Directors who also engage closely with the business to give strong assurance and governance. The Audit Committee meets quarterly and is the main oversight committee for the organisation. The Committee is chaired by a Non-executive Director and all other Non-executive Directors are members. The Chief Executive, the Chief Operating Officer and representatives from The National Archives' internal auditors (Baker Tilly Business Services Ltd) attend each meeting. The meetings are attended by our external auditors from the National Audit Office 26. Other Directors and senior staff members may be invited to attend particular meetings for discussion of individual agenda items or, where appropriate, as a training and development opportunity. The main purpose of the Audit Committee was reviewed and updated in December 2014, and is to: 

•	Review the effectiveness of the assurance 
framework 
•	Provide an opinion on how well the Board and the 
Accounting Officer are supported in decision-taking and in discharging their accountability obligations (particularly in respect of financial reporting) 

•	Ensure that adequate audit arrangements are

in place
•	Verify that risk management processes work 
effectively. 
The Audit Committee undertakes an annual review of its effectiveness using the National Audit Office's Committee self-assessment checklist. This year that self-assessment found that the Committee considered that it met most mandatory requirements, had performed well and all areas of risk at The National Archives had been identified and covered as part of Committee business. The Committee did, however, consider that induction procedures for newly appointed Non-executive Directors needed improvement so that their responsibilities as Audit Committee members (currently each new nonexecutive director is automatically appointed as a member of the Audit Committee) are clearly stated in a letter of appointment. This will also act to highlight any bespoke audit-related training needs. This improvement will be made during 2015-16. The Committee also felt more of its time could be spent looking at key risks in depth and agreed that outside of Committee meetings, members of the Committee should look for major themes, trends, issues and case studies in other organisations which are becoming increasing areas of risk. The Remuneration Committee meets twice a year and moderates the pay increases proposed by the Chief Executive and Keeper for the Executive Team and senior civil service staff in The National Archives. It is chaired by a Non-executive Director and all other Non-executive Directors are members. The Committee moderates the pay awards proposed by the Chief Executive and Keeper for the Executive Team, and Senior Civil Service staff in The National Archives, in line with guidance provided by Cabinet Office and the Ministry of Justice.

This year, I commissioned an internal review of The National Archives' governance structures, recommendations of which will be taken forward in the early part of 2015-16. A review of the terms of reference of all of our major governance boards was included in this exercise.    

## The Board'S Performance

Challenge on performance of the Board is provided by the Non-executive Directors and other Board members. In this the Board is informed by findings of the latest internal audit of The National Archives' governance structures.

## Highlights Of Board And Committee Reports

•	Fraud risk assessment: this gave the Committee 
The Management Board has a rolling agenda. Standing agenda items are: budget and quarterly forecasting, monthly financial and quarterly performance reporting, strategic risk management, new initiatives; updates on major capital and business change projects, business continuity, new corporate policies, sustainability and carbon management, and equality and diversity. 

•	Security (physical, information assurance and 
Summaries of the discussions at Management Board meetings are available at: www.nationalarchives.gov. uk/about/management-board-meetings.htm

•	Health and safety: this gave the Committee 
Towards the end of the year the Board considered and approved measures to improve the range and quality of papers submitted to it in order to make best use of Board members' time and allow it to provide effective advice, scrutiny and challenge. The measures addressed sponsorship of papers, brevity, clarity, completeness, style and submission timetabling. They will be adopted for 2015-16. At its late spring meeting the Audit Committee agrees its agenda for the following year. 

•	Environment and sustainability: this gave the 
The Audit Committee receives a number of regular updates during the year. This year these included: 

•	Recommendations from internal audits and 
•	Confidential Reporting ('Whistle-Blowing'): This 
In addition the Committee received ad hoc updates and progress reports on other issues of particular interest. This year these included development of The National Archives' Digital Records Infrastructure and on litigation against The National Archives over copyrighted material captured by the archiving of government websites by the UK Government Web Archive. In March 2015, the litigant signed a consent order withdrawing their case progress on implementation of recommendations. This year the Committee received assurance that management was taking appropriate action to fully implement internal audit recommendations or provided business justification if implementation deadlines (which are set by the owner as part of their management response to each recommendation) were not met. In addition the Committee was provided with visibility of audit recommendations that had been accepted in principle but related to issues where there had not been a business opportunity to implement (where, for example the recommendation related to the letting of a specific type of contract and The National Archives had yet to let that type of contract again following the audit). This makes sure there is no risk of any audit recommendation being overlooked. assurance that The National Archives has a good culture of fraud awareness and mitigation and highlights any new areas for potential fraud. This year the Committee noted the need for independent assurances to be in place to make sure that income received from commercial clients was not being understated. 

data handling): this year the Committee noted one significant breach of information security. It also noted The National Archives' contribution to development of a cross-departmental future model for protective security. 
assurance that The National Archives remains a safe working environment for staff, visitors and contractors. This year the Committee noted outcomes of an independent audit of The National Archives' health and safety procedures and specifically its emergency evacuation procedures. Further details on Health and safety are on page 43. 

 

Committee assurance that The National Archives was on track to meet all Greening Government commitments. gave the Committee assurance that avenues for confidential reporting within The National Archives were understood and had been tested.  

## Corporate Governance

It considers annual review as disproportionate with its size, status and legal framework as a non-ministerial government department and an executive agency of the Ministry of Justice. The Board met ten times during 2014-15. The Chief Executive, Acting Chief Executive, directors and Non-executive Directors attended the following numbers of formal Management Board meetings (for which they were eligible to attend) during the year:
As a non-ministerial department, The National Archives adopts and adheres to HM Treasury's Corporate Governance in Central Government: Code of Good Practice 2011 to the extent that it is practical, appropriate and not incompatible with any statutory or other authoritative requirements. The National Archives does not review the effectiveness of its Board annually and no review was carried out in 2014-15.

| Jeff James              | Chief Executive and Keeper                    |
|-------------------------|-----------------------------------------------|
| 27                      |                                               |
|                         | 7 of 7                                        |
| Clem Brohier            | Director, Finance and Corporate Services      |
| 28                      |                                               |
|                         | 10 of 10                                      |
| Mary Gledhill           | Commercial Director                           |
| Dr Valerie Johnson      | Interim Director, Research and Collections    |
| 29                      |                                               |
|                         | 2 of 2                                        |
| Rachel Murphy           | Interim Chief Technology Officer              |
| 30                      |                                               |
|                         | 5 of 6                                        |
| Caroline Ottaway-Searle | Director, Public Services and Human Resources |
| David Thomas            | Director, Technology and Preservation         |
| 31                      |                                               |
|                         | 3 of 3                                        |
| Carol Tullo             | Director, Information Policy and Services     |
| Prof Lisa Jardine CBE   | Non-executive Director                        |
| Peter Phippen           | Non-executive Director                        |
| Fiona Ross              | Non-executive Director                        |
| Trevor Spires CBE       | Non-executive Director                        |

The Audit Committee met four times during 2014- 15. Representatives from our internal and external auditors attend all Audit Committee meetings. The Audit Committee monitors the implementation of recommendations made by the internal auditors, taking reports and evidence of progress as a standing agenda item. For the reporting year, the Internal Audit annual report has indicated that, taking account of any issues identified, the Board can take assurance that the controls on which the organisation relies to manage the areas of governance, risk management and control are suitably designed and consistently applied, and are effective. The maximum 'residual risk' scores and the Board expects that risks at all levels in the organisation will be managed within these scores. Where a risk exceeds its residual risk score, remedial action is taken to reduce either likelihood or impact, where it is costeffective to do so.  
internal auditors also conduct an annual review to follow up their recommendations, which provides further independent assurance to the Committee. Any overdue recommendations are reported to the Executive Team in advance of each committee meeting, and directors may be called to appear before the Committee to account for slippage on implementation dates. Reports from the internal auditors are copied to committee members as soon as they are finalised and the minutes of committee meetings are circulated to Management Board members. The National Archives' internal audit services are provided by Baker Tilly Business Services Ltd. 2014-15 was the first of a four-year programme of audit work for which they are contracted.   
The Executive Team has identified a set of strategic risks, linked to our strategic and business priorities and informed by internal developments, external influences and longer-term commitments. These risks, if not properly managed, would compromise our ability to provide our statutory services or diminish these services to a degree unacceptable to our users. Each strategic risk is owned by a member of the Executive Team and they are regularly reviewed by the Executive Team, Management Board and Audit Committee. The National Archives' most significant risks in terms of residual risk scores are outlined below:

•	Economy and funding: it was considered that if 

At the start of each Audit Committee meeting the Committee meets with internal and external audit representatives first in advance of other regular attendees joining the meeting. This is an opportunity for confidential issues to be raised with the committee. 

## Managing Our Risks

The National Archives has a well-established approach to the management of risk at all levels and encourages risk management as an enabling tool to balance risk and innovation across the organisation. In 2014-15 The National Archives risks fell under the following categories: 

•	Financial •	Operational •	Reputational: general
•	Staff, leadership and culture: it was considered 
•	Reputational: ministers, MPs and government •	Compliance: legal •	Compliance: data and information management.
The degree of risk is measured by considering likelihood and impact. To describe our appetite for each category of risk, the Executive Team sets The National Archives did not adjust to the changing economic and funding context it risked having a detrimental effect on the effectiveness of its public sector delivery obligations.

-	Overview of controls in place during the year: 

we worked continuously to improve our planning, budgeting and forecasting. Our Income Strategy was delivered and our strategic priorities reviewed. Business cases for recruitment were scrutinised and challenged and the budget exchange, supply estimate processes and headcount forecasting allowed us to respond quickly and flexibly to the changing economic climate.

that the sustained effects of the changes across the wider civil service risked our ability to attract and retain key skills, particularly in the area of technology. This would have an impact on our ability to maintain a robust technological infrastructure and threaten our operations in the short term, and eventually our overall capability to deliver services and innovate. 

-	Overview of controls in place during the year:

we developed a new business strategy across the organisation, and alignment of resources to deliver it began; a resourcing review identified skills and resources required to align to the new strategy; a programme of leadership development was planned; approval to recruit to business-critical roles was delegated to me by the Ministry of Justice as Chief Executive and Keeper and Accounting Officer.
•	Information assurance and security: it was 
considered that while we continually assess and monitor potential cyber threats to the information we hold, there was a risk that we lacked the skills, capability and resources to respond fully to those threats. There was also the threat of a 'black swan' event that could not have been foreseen.
-	Overview of controls in place during the year: 
our Senior Information Risk Owner led and coordinated a programme to embed information assurance and management principles across the organisation; action plans were developed to achieve full compliance with HM Government's Security Policy Framework regarding protective marking of information in our electronic document records management systems in line with the new classification policy and the handling of cryptographic materials; an accreditation programme was established for new and existing systems.

Management of one risk carried forward from the previous reporting year - response to national civil service-wide industrial action - was considered to have moved to 'business as usual' and was no longer deemed a strategic risk. Identifying and managing risk is not a barrier to efficiency, effectiveness or innovation, and managing our strategic risks has a minimal effect on our activities unless additional controls need to be introduced. As far as possible we incorporate risk mitigations into our 'business as usual' activities, reinforcing the message that risk management is the responsibility of all staff. 

Risks below the strategic level are managed, reviewed and updated at least quarterly by Directors and their management teams. A directorate's risk register captures what are considered exceptional risks. These will normally: 

•	Be finite •	Require new or enhanced risk mitigation or control •	Be clearly linked with an organisation or service 
priority. 

We expect that over time most directorate risks will be managed as 'business as usual', but exceptionally, directorate risks may be escalated to The National Archives' strategic risk register. At operational levels, risks are managed on a day-to-day basis. Directors receive assurance on operational risks through quarterly accountability statements from their direct reports. These statements in turn inform the Director's own quarterly statement. Any significant governance or performance issues highlighted are raised with the Audit Committee. Authors of accountability statements assess the maturity of risk management in their areas of responsibility and provide evidence for their assessment. Authors are also required to provide assurance that their staff comply with key corporate policies, including: 

	 Financial procedure rules, Government 
Procurement Card policy, Cash security policy, Data protection and information handling policy, Fraud policy, Anti-bribery policy, Conflict of interest policy, Complaints policy, Control of physical assets and are aware of routes for confidential reporting (whistle-blowing). Short and medium-term additional governance structures are introduced for high-value projects and programmes as appropriate.

•	'Operation War Diary' won the 'Best of The Web' 
Both my Executive Management team and I are satisfied that we have put in place appropriate mitigations to prevent risks from occurring and, where necessary, that we have taken action to contain the impact of risk. I am confident that our risk management approach has been comprehensive, allowing me and the Executive Team to identify early, and respond to, any possible threats to the achievement of The National Archives' objectives. 

•	The Head of The National Archives Legislation 
I recognise that at a strategic level our risks were aligned closely with strategic priorities set out in For the Record. For Good. our business plan for 2011-2015. That was entirely appropriate for the period of that plan. We will work in early 2015-16 to redefine our strategic risks to better reflect our business plan for 2015-19 which focusses on our four main audiences (government, public, academic and the archives sector) and the challenges and opportunities of digital records and digital services.  

•	The National Archives retained its Investors in 

## Other Assurance Sources

•	Our Document Services Department was joint 
I obtain additional assurance from internal reporting, external validation and independently assessed awards and successful grant funding applications. Highlights during 2014-15 included:  

•	A positive Head of the Internal Audit opinion, based 
on the agreed internal audit schedule of work for the year.
•	Our response to the 20-year rule change: challenges 
•	We received a Sandford Award. The award is 
of this major business change, which came into force on 1 January 2013, continue to be handled efficiently.
•	Financial management: we continued to manage 
resources efficiently and effectively to meet the continuing challenges of the Comprehensive Spending Review 2010 and subsequent funding cuts.
•	We were awarded a new grant of just under

- 	
Staff engagement: staff were invited to participate 
in the Civil Service People Survey that involved organisations across the civil service. A key element of the survey was the Employee Engagement Index. This is a measure of how engaged employees are with their work and it is calculated from responses to five of the key statements in the survey: 
£1 million from the Heritage Lottery Fund (HLF), as set out on page 12 under its Skills for the Future programme. This is the strategic HLF fund that gives people the skills they need for future careers in heritage, and opens up heritage to wider audiences. 

The grant allows us to run a new project, Transforming Archives, which offers three annual cohorts of trainees the opportunity to develop practical archiving skills.

award in the research/collections online category at the Annual Conference of Museums and the Web. This innovative crowdsourcing project allows volunteers across the globe to tag names, places and other details in our First World War unit war diaries. Services received a nomination for a Digital Leaders 100 Award in the Central Government Official category. The awards recognise the top 100 individuals, organisations and products or services that are making a difference to digital technologies and e-services for the general public nationwide. People (IiP) standard accreditation, recognising our commitment to developing our people, and our ambition, drive and focus to the rest of the world. winner of the Industry Volunteer Team Award given by Spark, an education business charity. The award 
recognised the industry volunteer (or team) that has 'gone the extra mile' in supporting educationbusiness partnerships over the past year. regarded as a trademark for high-quality education provision and is an independently judged, qualityassured assessment of education programmes at heritage sites, museums, archives and collections across the British Isles.
-	 I am proud when I tell others I am part

of The National Archives 
-	 I would recommend The National Archives

as a great place to work
-	 I feel a strong personal attachment

to The National Archives 
-	 The National Archives inspires me

to do the best in my job 
-	 The National Archives motivates

me to help it achieve its objectives. 
Research in the private and public sector suggests that organisations with high levels of engagement are more efficient and effective. The National Archives' Employee Engagement Index was calculated at 70% this year, an improvement on the 68% scored last year. I am pleased that with this score The National Archives continues to be a Civil Service High Performer, especially in a further year of constraints on pay and recruitment. 

•	Environmental improvements: monitoring provides 
me with assurance that we will continue to reduce the impact of our operations on the environment.
•	Transparency: we continue to proactively publish 
information and data about the way that The National Archives is run, what we spend our budgets on and how well we achieve against a number of indicators. We continue to publish over and above what is required for a government body of our size. 
•	Our retention this year of the Customer Service 
Excellence standard, following a rigorous assessment process, gave me independent assurance that The National Archives continues to provide high-quality services to our customers. I was pleased to note that during this year's assessment we were also awarded four areas of 'Compliance Plus', defined as 'behaviours or practices that exceed the requirements of the standard, and are viewed as exceptional or as an exemplar for others - either within your organisation or in the wider customer service arena'. 

## Information Risk

We continue to work hard to demonstrate that we are an exemplar in the field of information risk within UK government. 

## Lapses In Data Security

There were no lapses in data security in The National Archives during 2014-15.

## Reporting Of Personal Data-Related Incidents

commissioner's office in 2014-15

| Notification steps   | Date of incident    |
|----------------------|---------------------|
| (month)              |                     |
| Nature of incident   | Nature of data      |
| involved             |                     |
| Number of people     |                     |
| potentially affected |                     |
| No incidents         | -                   |
| Further action on    |                     |
| information risk     |                     |
| Not applicable       |                     |

Incidents deemed by the Data Controller not to fall within the criteria for report to the Information Commissioner's Office but recorded centrally within the Department are set out in the table below. Small, localised incidents are not recorded centrally and are not cited in these figures.

| Category                                           | Nature of incident                                                        | Total                                                                 |
|----------------------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------|
| 0                                                  | I                                                                         | Loss of inadequately protected electronic equipment, devices or paper |
| documents from secured Government premises         |                                                                           |                                                                       |
| II                                                 | Loss of inadequately protected electronic equipment, devices or paper     |                                                                       |
| documents from outside secured Government premises |                                                                           |                                                                       |
| 0                                                  |                                                                           |                                                                       |
| III                                                | Insecure disposal of inadequately protected electronic equipment, devices |                                                                       |
| or paper documents                                 |                                                                           |                                                                       |
| 0                                                  |                                                                           |                                                                       |
| IV                                                 | Unauthorised disclosure                                                   | 0                                                                     |
| V                                                  | Other                                                                     | 0                                                                     |

## 3. Audit Certificate And Report The Certificate And Report Of The Comptroller And Auditor General To The House Of Commons

I certify that I have audited the financial statements of The National Archives for the year ended 31 March 2015 under the Government Resources and Accounts Act 2000. The financial statements comprise: the Statements of Comprehensive Net Expenditure, Financial Position, Cash Flows, Changes in Taxpayers' Equity; and the related notes. I have also audited the Statement of Parliamentary Supply and the related notes. These financial statements have been prepared under the accounting policies set out within them. I have also audited the information in the Remuneration Report that is described in the report as having been audited.

## Respective Responsibilities Of The Accounting Officer And Auditor

As explained more fully in the Statement of Accounting Officer's Responsibilities, the Accounting Officer is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. My responsibility is to audit, certify and report on the financial statements in accordance with the Government Resources and Accounts Act 2000. I conducted my audit in accordance with International Standards on Auditing (UK and Ireland). Those standards require me and my staff to comply with the Auditing Practices Board's Ethical Standards for Auditors.

## Scope Of The Audit Of The Financial Statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Department's circumstances and have been consistently applied and adequately disclosed;

the reasonableness of significant accounting estimates made by the Accounting Officer; and the overall presentation of the financial statements. In addition I read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by me in the course of performing the audit. If I become aware of any apparent material misstatements or inconsistencies, I consider the implications for my certificate. I am required to obtain evidence sufficient to give reasonable assurance that the Statement of Parliamentary Supply properly presents the outturn against voted Parliamentary control totals and that those totals have not been exceeded. The voted Parliamentary control totals are Departmental Expenditure Limits (Resource and Capital), Annually Managed Expenditure (Resource and Capital), Non-Budget (Resource) and Net Cash Requirement. I am also required to obtain evidence sufficient to give reasonable assurance that the expenditure and income recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

## Opinion On Regularity

In my opinion, in all material respects:

•	The Statement of Parliamentary Supply properly 
presents the outturn against voted Parliamentary control totals for the year ended 31 March 2015 and shows that those totals have not been exceeded; and
•	The expenditure and income recorded in the 
financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

## Opinion On Financial Statements Matters On Which I Report By Exception

In my opinion:
I have nothing to report in respect of the following matters which I report to you if, in my opinion:

•	The financial statements give a true and fair view of 
•	Adequate accounting records have not been kept 
the state of the Department's affairs as at 31 March 2015 and of its net operating cost for the year then ended; and
or returns adequate for my audit have not been received from branches not visited by my staff; or
•	The financial statements have been properly 
•	The financial statements and the part of the 
prepared in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions issued thereunder.
Remuneration Report to be audited are not in agreement with the accounting records and returns; or
•	I have not received all of the information

## Opinion On Other Matters

and explanations I require for my audit; or 
In my opinion:

•	The Governance Statement does not reflect 
compliance with HM Treasury's guidance.
•	The part of the Remuneration Report to be audited 

## Report

has been properly prepared in accordance with HM Treasury directions made under the Government Resources and Accounts Act 2000; and
I have no observations to make on these financial statements.

•	The information given in the Strategic Report and 
Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Sir Amyas C E Morse Comptroller and Auditor General National Audit Office 157-197 Buckingham Palace Road Victoria, London SW1W 9SP 10 July 2015

## 4. Accounts Summary Statement Of Parliamentary Supply (Sops)

In addition to the primary statements prepared under the International Financial Reporting Standards (IFRS), the *Government Financial Reporting Manual* (FReM) requires The National Archives to prepare a Statement of Parliamentary Supply and supporting notes to show resource outturn against the Supply Estimate presented to Parliament, in respect of each budgetary control limit.

## Summary Of Resource And Capital Outturn 2014-15

|                                |         |               |               |  2014-15        |         | 2014-15   | 2014-15 2013-14   |
|--------------------------------|---------|---------------|---------------|-----------------|---------|-----------|-------------------|
|                                |         | Estimate      |               |                 | Outturn |           | Outturn           |
| Non-                           |         |               |               |                 |         |           |                   |
| voted                          | Total   | Voted         |               |                 |         |           |                   |
| Voted                          |         |               |               |                 |         |           |                   |
| Note                           | £000    | £000          | £000          | £000            | £000    | £000      | £000              |
| Departmental Expenditure Limit |         |               |               |                 |         |           |                   |
| - Resource                     |         |               |               |                 |         |           |                   |
| SOPS 2.1                       |         |               |               |                 |         |           |                   |
| 34,494                         | -       | 34,494 34,093 | -             | 34,093          | 401     | 33,915    |                   |
| - Capital                      |         |               |               |                 |         |           |                   |
| SOPS 2.2                       |         |               |               |                 |         |           |                   |
| 2,030                          | -       | 2,030         | 2,007         | -               | 2,007   | 23        | 2,018             |
| Annually Managed Expenditure   |         |               |               |                 |         |           |                   |
| - Resource                     |         |               |               |                 |         |           |                   |
| SOPS 2.1                       |         |               |               |                 |         |           |                   |
| 579                            | -       | 579           | 577           | -               | 577     | 2         | (52)              |
| - Capital                      |         |               |               |                 |         |           |                   |
| SOPS 2.2                       |         |               |               |                 |         |           |                   |
| -                              | -       | -             | -             | -               | -       | -         | -                 |
| Total                          | 37,103  | -             | 37,103 36,677 | - 36,677        | 426     | 35,881    |                   |
| Total Resource                 |         |               |               |                 |         |           |                   |
| SOPS 2.1                       |         |               |               |                 |         |           |                   |
| 35,073                         | -       | 35,073        | 34,670        | -               | 34,670  | 403       | 33,863            |
| Total Capital                  |         |               |               |                 |         |           |                   |
| SOPS 2.2                       |         |               |               |                 |         |           |                   |
| 2,030                          | -       | 2,030         | 2,007         | -               | 2,007   | 23        | 2,018             |
| Total                          | 37,103  | -             | 37,103        | 36,677          | -       | 36,677    | 426               |
| Net cash requirement           |         |               |               |                 |         |           |                   |
|                                | 2014-15 |               | 2014-15       | 2014-15 2013-14 |         |           |                   |
|                                |         | Estimate      |               |                 | Outturn | Outturn   |                   |
| Note                           | £000    |               |               | £000            | £000    | £000      |                   |
| Net Cash Requirement           |         |               |               |                 |         |           |                   |
| SOPS 4                         |         |               |               |                 |         |           |                   |
| 30,864                         |         | 30,819        | 45            | 31,323          |         |           |                   |
Voted outturn 
compared 
Nonwith Estimate: 
voted
Total
saving/(excess)
Total
Outturn
compared 
with Estimate: 
saving/(excess) 

## Administration Costs

|                      |       |          |  2014-15   |       | 2014-15   | 2013-14   |
|----------------------|-------|----------|------------|-------|-----------|-----------|
|                      |       | Estimate |            |       | Outturn   | Outturn   |
| Note                 | £000  |          |            | £000  | £000      |           |
| Administration costs |       |          |            |       |           |           |
| SOPS 2.1             |       |          |            |       |           |           |
|                      | 8,799 |          | 8,660      | 8,570 |           |           |

Figures in the areas outlined in bold are voted totals or other totals subject to Parliamentary Control. Explanations of variances between Estimate and Outurn are given in the management comentary on page 29. The notes on pages 74 to 94 form part of these accounts.

## Notes To The Departmental Resource Accounts (Statement Of Parliamentary Supply)

SOPS1. Statement of accounting policies The Statement of Parliamentary Supply and supporting notes have been prepared in accordance with the 2014-15 *Government Financial Reporting Manual* (FReM) issued by HM Treasury. The Statement of Parliamentary Supply accounting policies contained in the FReM are consistent with the requirements set out in the 2014-15 *Consolidated Budgeting Guidance* and *Supply Estimates Guidance Manual.* SOPS1.1 Accounting convention The Statement of Parliamentary Supply and related notes are presented consistently with Treasury budget control and Supply Estimates. The aggregates across government are measured using National Accounts, prepared in accordance with the internationally agreed framework 'European System of Accounts' (ESA95). ESA95 is in turn consistent with the System of National Accounts (SNA93), which is prepared under the auspices of the United Nations. The budgeting system and the consequential presentation of Supply Estimates and the Statement of Parliamentary Supply and related notes have different objectives from IFRS-based accounts. The system supports the achievement of macro-economic stability by ensuring that public expenditure is controlled, with relevant Parliamentary authority, in support of the Government's fiscal framework. The system provides incentives to departments to manage spending well so as to provide high quality-public services that offer value for money to the taxpayer. The Government's objectives for fiscal policy are set out in the *Charter for Budget Responsibility*. These are to: 

•	Ensure sustainable public finances that support confidence in the economy, promote intergenerational 
fairness, and ensure the effectiveness of wider government policy 
•	Support and improve the effectiveness of monetary policy in stabilising economic fluctuations. 
SOPS1.2 Comparison with IFRS-based accounts Many transactions are treated in the same way in National Accounts and IFRS-based accounts, but there are a number of differences.

SOPS1.2a Capital Grants Grant expenditure used for capital purposes is treated as a capital (CDEL) item in the Statement of Parliamentary Supply. Under IFRS, as applied by the FReM, there is no distinction between capital grants and other grants, and they score as an item of expenditure in the Consolidated Statement of Comprehensive Net Expenditure. The National Archives has not made any capital grants in the reporting period. SOPS1.2b Prior Period Adjustments (PPAs) PPAs resulting from an error in previous recording, or from an accounting policy change initiated by the department, need to be voted by Parliament in the current year, whereas in IFRS-based accounts (IAS 8) they are treated as adjustments to previous years. (PPAs resulting from a change in accounting policy brought in by a new or modified accounting standard are not included in Estimates, so there is no misalignment). The National Archives has had no prior period adjustments in the reporting period. SOPS1.2c Receipts in excess of HM Treasury agreement This applies where HM Treasury has agreed a limit to income retainable by the department, with any excess income scoring outside of budgets, and consequently outside of the Statement of Parliamentary Supply. IFRS-based accounts will record all of the income, regardless of the budgetary limit. This situation may arise in the following areas: (i) profit on disposal of assets; (ii) income generation above department Spending Review settlements; and (iii) income received above netting-off agreements. The National Archives receipts were not in excess of agreed HM Treasury income limits during the reporting period. SOPS1.2d Provisions - Administration and Programme expenditure Provisions recognised in IFRS-based accounts are not recognised as expenditure for national accounts purposes until the actual payment of cash (or accrual liability) is recognised. To meet the requirements of both resource accounting and national accounts, additional data entries are made in the Statement of Parliamentary Supply across AME and DEL control totals, which do not affect the Statement of Comprehensive Net Expenditure. As the Administration control total is a sub-category of DEL, Administration and Programme expenditure reported in the Statement of Parliamentary Supply will differ from that reported in the IFRS-based accounts. A reconciliation is provided in SOPS note 3.1, page 69.

## Sops2. Net Outturn Sops2.1 Analysis Of Net Resource Outturn By Section

|                                            |                 |        | Administration   | Programme       | Outturn   | Estimate Outturn   |
|--------------------------------------------|-----------------|--------|------------------|-----------------|-----------|--------------------|
| Gross                                      | Income          | Net    | Gross            | Income          | Net       | Total              |
| £000                                       | £000            | £000   | £000             | £000            | £000      | £000               |
| Spending in Departmental Expenditure Limit |                 |        |                  |                 |           |                    |
| - Voted                                    |                 |        |                  |                 |           |                    |
| 8,697                                      | (37)            |        |                  |                 |           |                    |
| 8,660                                      | 36,268 (10,835) | 25,433 | 34,093           | 34,494          | 401       | 33,915             |
| Annually Managed Expenditure               |                 |        |                  |                 |           |                    |
| - Voted                                    | -               | -      | -                | 577             | -         | 577                |
| Total                                      | 8,697           | (37)   | 8,660            | 36,845 (10,835) | 26,010    | 34,670             |

## Sops2.2 Analysis Of Net Capital Outturn By Section

|                                            |       |      |       | Gross Income   | Net   |
|--------------------------------------------|-------|------|-------|----------------|-------|
| £000                                       | £000  | £000 | £000  | £000           | £000  |
| Spending in Departmental Expenditure Limit |       |      |       |                |       |
| - Voted                                    | 2,007 | -    | 2,007 | 2,030          | 23    |
| Annually Managed Expenditure               |       |      |       |                |       |
| - Voted                                    | -     | -    | -     | -              | -     |
| Total                                      | 2,007 | -    | 2,007 | 2,030          | 23    |
| 2014-15   | 2014-15 2013-14   |
|-----------|-------------------|
| Net Total |                   |
| outturn   |                   |
| compared  |                   |
| Net       |                   |
| with      |                   |
| Total     | Estimate          |
| 2014-15   | 2014-15 2013-14   |
| Outturn   | Estimate Outturn  |
| Net Total |                   |
| outturn   |                   |
| compared  |                   |
| Net       |                   |
| with      |                   |
| Total     | Estimate          |

## Sops3. Reconciliation Of Outturn To Net Operating Cost And Against Administration Budget Sops3.1 Outturn Against Final Administration Budget And Administration Net Operating Cost

| 2014-15                                                 | 2013-14   |
|---------------------------------------------------------|-----------|
| Outturn                                                 | Outturn   |
| £000                                                    | £000      |
| Estimate - Administration costs limit                   | 8,799     |
| Outturn - Gross Administration costs                    | 8,697     |
| Outturn - Gross income relating to Administration costs | (37)      |
| Outturn - Net Administration costs                      | 8,660     |
| Reconciliation to operating costs:                      |           |
| Less: other                                             | -         |
| Administration Net Operating costs                      | 8,660     |
|                                                         |           |
| 8,570                                                   |           |

## Sops4. Reconciliation Of Net Resource Outturn To Net Cash Requirement

Net total outturn

compared with

Estimate:

Note
Estimate
Outturn
saving/(excess)
£000
£000 
£000
Resource Outturn
35,073
34,670
403 
Capital Outturn
2,030
2,007
23 
Accruals to cash adjustments: Adjustments to remove non-cash items - Depreciation and amortisation
4/5 
(5,600)
(5,496)
(104)
- Loss on disposal
4/5
-
(175)
175
- New provisions and adjustments to previous provisions
 16
(604)
(610)
6 
- Other non-cash items
4/5
(60)
(48)
(12)
 Adjustments to reflect movements in working balances:
 
 
- Increase/(decrease) in inventory
 
-
(2)
2
- Increase/(decrease) in receivables
14 
-
(285)
285
- (Increase)/decrease in payables
15
-
724
(724)
- Use of provisions
16 
25
34
(9)
Net cash requirement
30,864
30,819
45

## Statement Of Comprehensive Net Expenditure

This account summarises the expenditure and income generated and consumed on an accruals basis. It also includes other comprehensive income and expenditure, which includes changes to the values on non-current assets and other financial instruments that cannot yet be recognised as income or expenditure. for the year ended 31 March 2015

|                                                | 2014-15   | 2013-14   |
|------------------------------------------------|-----------|-----------|
| Note                                           | £000      | £000      |
| Administration Costs:                          |           |           |
| - Staff costs                                  |           |           |
| 3                                              | 5,241     | 5,243     |
| - Other costs                                  | 4         | 3,456     |
| - Income                                       | (37)      | (31)      |
| Programme Costs:                               |           |           |
| - Staff costs                                  | 3         | 19,716    |
| - Other costs                                  | 5         | 17,129    |
| - Income                                       | (10,835)  | (10,604)  |
| Net Operating Cost                             | 34,670    | 33,863    |
| Total expenditure                              | 45,542    | 44,498    |
| Total income                                   | 6         | (10,872)  |
| Net Operating Cost                             | 34,670    | 33,863    |
| Other Comprehensive Net Expenditure            |           |           |
| Net (gain)/loss on:                            |           |           |
| - revaluation of property, plant and equipment | 7         | (13,826)  |
| - revaluation of intangibles                   | 8         | (558)     |
| Receipt of donated asset                       | 1         | 1         |
| Total comprehensive expenditure                | 20,287    | 24,677    |

The notes on pages 74 to 94 form part of these accounts.

## Statement Of Financial Position

This statement presents the financial position of The National Archives. It comprises: assets owned or controlled; liabilities owed to other bodies; and equity, the remaining value of the entity.

as at 31 March 2015
31 March 2015
31 March 2014
Note
£000
£000
£000
£000
Non-current assets: Property, plant and equipment
7 
150,849
140,642 
Intangible assets
8
22,135
21,623 
Trade receivables falling due after more than one year 14
420
123
Total non-current assets
173,404
162,388
Current assets: Inventories
88
90 
Trade and other receivables
14 
235
411 
Other current assets
14 
2,143
2,549 
Cash and cash equivalents
13 
45
110
Total current assets
2,511
3,160
Total assets
175,915
165,548
Current liabilities Trade and other payables
15 
(983)
(510)
Provisions
16
(142)
(27)
Other liabilities
15
(5,118)
(6,038)
Total current liabilities
(6,243)
(6,575)
Non-current assets less net current liabilities 
169,672
158,973
Non-current liabilities: Other liabilities
15
(779)
(1,121)
Provisions
16
(486)
(25)
Total non-current liabilities
(1,265)
(1,146)
Total assets less liabilities
168,407
157,827
Taxpayers' equity and other reserves: General fund
66,991
69,079
Donated asset reserve
9
10 
Revaluation reserve
101,407
88,738 
Total equity
168,407
157,827 

The notes on pages 74 to 94 form part of these accounts.

## Statement Of Cash Flows

for the year ended 31 March 2015 The Statement of Cash Flows shows the changes in cash and cash equivalents of the department during the reporting period. The statement shows how the department generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of service costs and the extent to which these operations are funded by way of income from the recipients of services provided by the department. Investing activities represent the extent to which cash inflows and outflows have been made for resources which are intended to contribute to the departments' future public service delivery. Cash flows arising from financing activities include Parliamentary Supply and other cash flows, including borrowing.

|                                                                      | 2014-15   | 2013-14                                                          |
|----------------------------------------------------------------------|-----------|------------------------------------------------------------------|
| Note                                                                 | £000      | £000                                                             |
| Cash flows from operating activities                                 |           |                                                                  |
| Net operating cost                                                   | (34,670)  | (33,863)                                                         |
| Adjustments for non-cash transactions                                | 4/5       | 6,329                                                            |
| (Increase)/decrease in trade and other receivables                   | 14        | 285                                                              |
| (Increase)/decrease in inventories                                   | 2         | 71                                                               |
| Increase/(decrease) in trade and other payables                      | 15        | (789)                                                            |
| 65                                                                   | -         | less movements in payables relating to items not passing through |
| the Statement of Comprehensive Net Expenditure                       |           |                                                                  |
| Use of provisions                                                    | 16        | (34)                                                             |
| Net cash outflow from operating activities                           | (28,812)  | (28,838)                                                         |
| Cash flows from investing activities                                 |           |                                                                  |
| Purchase of property, plant and equipment                            | 7         | (1,982)                                                          |
| Purchase of intangible assets                                        | 8         | (25)                                                             |
| Proceeds of disposal of property, plant and equipment                |           | -                                                                |
| Net cash outflow from investing activities                           |           | (2,007)                                                          |
| Cash flows from financing activities                                 |           |                                                                  |
| From the Consolidated Fund (Supply) - current year                   |           | 30,805                                                           |
| Payment of Consolidated Fund Extra Receipts                          | (51)      | -                                                                |
| Net financing                                                        |           | 30,754                                                           |
|                                                                      | (65)      | 98                                                               |
| before adjustment for receipts and payments to the Consolidated Fund |           |                                                                  |
| Payments of amounts due to the Consolidated Fund                     |           | -                                                                |
| Cash and cash equivalents at the beginning of the period             | 13        | 110                                                              |
| Cash and cash equivalents at the end of the period                   | 13        | 45                                                               |

The notes on pages 74 to 94 form part of these accounts.

## Statement Of Changes In Taxpayers' Equity

for the year ended 31 March 2015

| General
                                            | Revaluation    | Donated
               | Total
          |
|--------------------------------------------|----------------|---------------|----------|
| Fund                                       | Reserve        | Asset Reserve | Reserves |
| Note                                       | £000           | £000          | £000     |
| Balance at 31 March 2013                   |                | 70,258        | 80,974   |
| Changes in taxpayers' equity for 2013-14   |                |               |          |
| Net Parliamentary funding - drawn down     |                | 31,311        | -        |
| Net Parliamentary funding - deemed         | (39)           | -             | -        |
| Supply (payable)/receivable adjustment     | (59)           | -             | -        |
| Comprehensive net expenditure for the year | (33,863)       | 9,187         | (1)      |
| Non-cash charges - auditor's remuneration  | 4              | 48            | -        |
| Transfers between reserves                 |                | 1,423         | (1,423)  |
| Balance at 31 March 2014                   |                | 69,079        | 88,738   |
| Changes in taxpayers' equity for 2014-15   |                |               |          |
| Net Parliamentary funding - drawn down     |                | 30,805        | -        |
| Net Parliamentary funding - deemed         |                | 59            | -        |
| Supply (payable)/receivable adjustment     | 15             | (45)          | -        |
| Comprehensive net expenditure for the year |                | (34,670)      | 14,384   |
| Non-cash charges - auditor's remuneration  | 4              | 48            | -        |
| Transfers between reserves                 |                | 1,715         | (1,715)  |
| Balance at 31 March 2015                   |                | 66,991        | 101,407  |

The notes on pages 74 to 94 form part of these accounts.

## 5. Notes To The Departmental Resource Accounts 1. Statement Of Accounting Policies

assets are implicitly owned by The National Archives. There are no leased assets. Land and buildings are stated at fair value using professional valuations every five years. Appropriate indices are used in intervening years for buildings. As the land has planning restrictions it is considered inappropriate to index the land in the intervening years between professional valuations. Professional valuation was last carried out in 2011-12. Other non-current assets are stated at fair value using appropriate indices only where their values are material with respect to the overall net book value of non-current assets held. Where indices are not applied, depreciated historical cost is considered as a proxy for fair value, as per FReM 6.2.7(h).

These financial statements have been prepared in accordance with the 2014-15 Government Financial Reporting Manual (FReM) issued by HM Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRS) as adapted or interpreted for the public sector context. Where the FReM permits a choice of accounting policy, the accounting policy which is judged to be most appropriate to the particular circumstances of The National Archives for the purpose of giving a true and fair view has been selected. The particular policies adopted by The National Archives are described below. They have been applied consistently in dealing with items considered material in relation to the accounts.

The minimum level for capitalisation of an individual tangible non-current asset is £5,000. Where bulk purchases are made for individual assets whose unit costs are below the threshold, but in aggregate exceed £30,000 within a financial year, the assets are capitalised.

In addition to the primary statements prepared under IFRS, the FReM also requires the department to prepare an additional primary statement. The Statement of Parliamentary Supply and supporting notes show outturn against Estimate in terms of the net resource requirement and the net cash requirement. 

Directly attributable costs incurred in bringing the asset to the location and condition necessary for it to be capable of operating are also capitalised. This includes the costs of external contractors who deliver on information technology projects as well as salaries of internal staff working 100% of their time on particular capital projects.

1.1 Accounting convention These accounts have been prepared under the historical cost convention modified to account for any material revaluation of assets and liabilities to fair value in accordance with the standards, and subject to interpretations and adaptions of those standards contained in the FReM.

1.3 Heritage assets The National Archives holds more than 11 million physical records, artefacts and a significant and growing digital archive classed as non-operational heritage assets which are held in order to fulfil our statutory function which includes ensuring that important information is preserved and that it can be accessed and used.

1.2 Property, plant and equipment Property, plant and equipment other than land and buildings consist of plant and machinery, furniture and fittings, transport, equipment, and information and communication technology. Expenditure on restoration and conservation work is part of the normal operating costs of The National Archives and is not capitalised. It is recorded as part of programme costs.

Records of our collection have been catalogued and contain descriptions of documents from central government, courts of law and other UK national bodies, including records of interest to family historians, medieval tax, criminal trials, UFO sightings, The National Archives is the beneficial owner of the freehold land and buildings at Kew. All non-current the history of many countries and many other subjects. Further details of our catalogue, Discovery, can be found at nationalarchives.gov.uk/records In the opinion of the Management Board, reliable information on cost or valuation is not available for the department's collection of heritage assets. This is due to the diverse nature of the assets held, the lack of information on purchase cost (as the assets are not purchased); the lack of comparable market values; and the volume of items held. As well as the aforementioned, any market value placed on these assets would not be a true reflection of the value of the assets to the nation's heritage; the assets, if lost, could not be replaced or reconstructed. These assets are therefore not reported in the Statement of Financial Position. Certain items within the overall collection are of particular significance, including Domesday Book, one of our most prized national treasures, which has been preserved for over nine centuries and is now cared for at Kew; two contemporary versions of Magna Carta; unique records of official treaties and a host of irreplaceable social records. Further details of the preservation and management of our heritage assets are provided in note 10, page 88 of the accounts.

1.4 Intangible assets Intangible assets comprise software licences purchased from third parties, amortised over the life of the licence, and costs associated with systems in the course of construction as they are developed and implemented, amortised over their estimated useful life for up to five years. In addition, The National Archives recognises licences issued to third parties and internal revenuegenerating databases (such as our Document Download and Image Library services) as intangible assets with indefinite lives, reflecting the underlying nature of the supporting public records. The valuation adopted in each case is based on current forecasts of reasonably foreseeable future revenue-generating capacity, discounted as appropriate. Each is subject to annual review to assess at each reporting date whether there is any indication that the asset is impaired, as required by International Accounting Standard 36: Impairment of Assets. Further details of the effects of changes in our forecast estimates are shown under market risk in note 12, page 90 of the accounts.

## 1.5 Depreciation And Amortisation Freehold Land Is Not Depreciated.

Depreciation is provided at rates calculated to write off the valuation of freehold buildings and other non-current assets by equal instalments over their estimated useful lives. Assets in the course of construction are not depreciated. Lives are normally in the following ranges:

| Buildings	                              | up to 40 years   |
|------------------------------|------------------|
| Information technology       | up to five years |
| Plant and machinery          | up to 25 years   |
| Furniture and fittings       | up to 10 years   |
| Transport equipment          | up to 10 years   |
| Software licences            | up to five years |
| Licences issued              | indefinite       |
| Revenue generating databases | indefinite       |

1.6 Inventories Current asset stocks, as held for sale, are valued at the lower of cost and net realisable value. 1.7 Operating income Operating income is income which relates directly to the operating activities of The National Archives. It principally comprises charges for services provided - such as for the sale of copies of documents, sale of publications and other items and services, reproduction fees and royalties for the publication of images, as well as income generated by the licensing of digital copies of historical records. Operating income also includes grants and contributions from organisations, including other government departments to carry out specific projects.

All operating income is recorded when the service is provided. Elements that relate to work not yet completed are held at the end of the reporting period as deferred income and subsequently recognised as income upon completion of the service.

benefit elements of the scheme are unfunded and are non-contributory except in respect of dependents' benefits. The department recognises the expected cost of these elements on a systematic and rational basis over the period during which it benefits from the employees' service by payments to the PCSPS of amounts calculated on an accruing basis. Liability for payment of future benefits is a charge on the PCSPS. In respect of the defined contribution elements of the schemes, the department recognises the contributions payable for the year. See note 3, page 80.

1.8 Short-term staff benefits The National Archives recognises the liability associated with the short-term staff benefit for untaken but earned annual leave entitlement at the end of the reporting period. This liability is reviewed annually. 1.9 Administration and programme expenditure The Statement of Comprehensive Net Expenditure is analysed between administration and programme income and expenditure. The classification of expenditure and income as administration or as programme follows the definition of administration costs as set out by HM Treasury in the Consolidated Budgeting Guidance.

1.11 Early departure costs Under the previous Civil Service Compensation Scheme (in place until 22 December 2010) the Department was required to meet the additional costs of benefits beyond the normal PCSPS benefits in respect of employees who retire early by paying the required amounts annually to the PCSPS over the period between early departure and normal retirement date. Under the new Civil Service Compensation Scheme the Department pays over a lump sum to PCSPS to cover these costs in full following agreement of the departure rather than on an ongoing basis and therefore these transactions are expensed when they occur rather than being recognised as provisions.

Costs classified as administration expenditure include costs to cover functions of finance, information technology, procurement, human resources and organisational development. Other costs include corporate planning and strategy services, internal corporate communications, corporate governance and board management, knowledge and information management and project management.  
The provision recognised for early retirement therefore reflects costs associated with staff who retired before the transition to the new Civil Service Compensation Scheme.   The National Archives provided in full for this cost when the early retirement programme became binding by establishing a provision for the estimated payments.

Programme expenditure reflects the total costs of service delivery excluding all aforementioned administrative costs of The National Archives. These costs are for providing direct services of, for example, public access to national records, family records and archives at Kew; the publishing, conservation and preservation of records; and UK information management advice and policy including standards, compliance, and copyright.

1.12 Operating leases Operating lease rentals are charged to the Statement of Comprehensive Net Expenditure in equal amounts over the lease term. There are no finance leases.

1.10 Pensions Past and present employees are covered by the provisions of the Principal Civil Service Pension Schemes (PCSPS) which are described in the Remuneration Report on page 51. The defined 
1.13 Value Added Tax (VAT) Most of the activities of the department are outside the scope of VAT and, in general output tax does not apply and input tax on purchases is not recoverable. Irrecoverable VAT is charged to the relevant expenditure category or included in the capitalised purchase price of non-current assets. Where output tax is charged or input tax is recoverable, the amounts are stated net of VAT. 1.14 Contingent liabilities In addition to any contingent liabilities disclosed in accordance with International Accounting Standard 37: Provisions, contingent liabilities and contingent assets (IAS 37), the department discloses for parliamentary reporting and accountability purposes certain statutory and non-statutory contingent liabilities where the likelihood of a transfer of economic benefit is remote, but which have been reported to Parliament in accordance with the requirements of Managing Public Money. Where the time value of money is material, any contingent liabilities which are required to be disclosed under IAS 37 are stated at discounted amounts and the amounts reported to Parliament are separately noted. Any contingent liabilities that are not required to be disclosed by IAS 37 are stated at the amounts reported to Parliament.

1.15 Third party assets The National Archives holds monetary assets on a temporary basis on behalf of other government departments for disbursement to them. These balances are related to arrangements for the collection and allocation of income that is generated by the licensing of Crown copyright material originated by departments and agencies that do not have delegated authority to license this material themselves. The Director, Information Policy and Services at The National Archives is the Controller of Her Majesty's Stationery Office (HMSO) who has responsibility for the management and licensing of copyrights owned by the Crown in her capacity as Queen's Printer and Queen's Printer for Scotland. At 31 March 2015 the value of those cash assets was £15,648. In accordance with the FReM, as government has a beneficial interest in these assets, the balances are included in the accounts within cash and trade payables.

## 1.16 Prior Period Adjustments There Are No Prior Period Adjustments.

- IFRS 15 Revenue from Contracts with Customers - Defined Benefit Plans: Employee Contributions - Clarification of Acceptable Methods of Depreciation 
1.17 New and revised standards issued but not effective Certain new standards, interpretations and amendments to existing standards have been published that The National Archives will be required to apply on or after 1 April 2015 or later periods, following EU-adoption and as applied by the FReM. These standards are not expected to have a material impact on The National Archives' future accounts. They are as follows:

- IFRS 9 Financial Instruments will replace 
IAS39 Financial Instruments: Recognition and Measurement', and is expected to simplify and improve reporting of financial instruments. 
- Amendments to IFRS 11 Accounting for Acquisitions 
- Annual improvements to IFRSs 2010-2012 cycle - Amendments to IAS 16 and IAS 41: Bearer Plants to 
of interests in Joint Operations provides a principlesbased definition of joint arrangements (joint operations or joint ventures) based on rights and obligations. Proportional consolidation accounting for joint ventures is no longer permitted (only equity accounting). 
- IFRS 14 Regulatory Deferral Accounts permits 
- Amendments to IAS 27: Equity Method in separate 
first-time adopters of IFRS to continue to account, with some limited changes, for 'regulatory deferral account balances' in accordance with its previous 
generally accepted accounting principles (GAAP). 
- Sale or Contribution of Assets between an Investor 
specifies how and when revenue is recognised as well as requiring such entities to provide users of financial statements with more informative, relevant disclosures. provides more clarity on accounting for employee contributions in respect of service. and Amortisation - Amendments to IAS 16 and IAS 38 provides guidance to explain that future reductions in selling prices could be indicative of a higher rate of consumption of future economic benefits embodied in an asset. and annual improvements to IFRSs 2012-2014 cycle streamlines the process for dealing efficiently with a collection of amendment to IFRSs. align the accounting treatment with property, plant and equipment. Financial Statements reinstates the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an 
entity's separate financial statements. and its Associate or Joint Venture - Amendments to IFRS 10 and IAS 28.

## 2. Statement Of Operating Costs By Operating Segment

International Financial Reporting Standard 8: Operating Segments (IFRS8) requires operating segmental information to be provided based on information that the Chief Executive and Keeper as Chief Operating Decision Maker (CODM) uses to make decisions about the organisation. This information reviewed by the CODM is currently presented based on our management structure as per pages 24-25. In order to aid readers' understanding, the segments below have been presented in line with our public task, which can be summarised as: leading on policy and best practice in knowledge and information management for the public sector; preserving and protecting the record; and providing public access. In accordance with IFRS8, below is a schedule of income and expenditure against each identified segment. Overheads are allocated proportionally based on the direct income/costs identified.

2014-15
Government 
Preservation and 
Public

Total
information 
protection
access
management
£000
£000
£000
£000
Income
(2,239)
(593)
(8,040)
(10,872)
Operating expenditure
8,676
11,408
19,962
40,046
Depreciation and amortisation
1,190
1,566
2,740
5,496
Net operating cost
7,627
12,381
14,662
34,670


2013-14
 
Government 
Preservation and 
Public access
Total
information 
protection
management
 
£000
£000
£000
£000
Income
(2,238)
(611)
(7,786)
(10,635)
Operating expenditure
8,519
11,587
19,259
39,365
Depreciation and amortisation
1,111
1,511
2,511
5,133
 Net operating cost
 7,392
12,487
13,984
33,863

Reconciling differences between the segmental analysis above and the net resource outturn are shown in SOPS3.

## 3. Staff Numbers And Related Costs

Staff costs comprise:

|                                                   |            | 2014-15   | 2013-14    |
|---------------------------------------------------|------------|-----------|------------|
| Permanently                                       | Others     | Total     | Total      |
| employed staff                                    |            |           |            |
| Wages and salaries                                | 19,120     | 1,029     | 20,149     |
| Social Security costs                             | 1,503      | -         | 1,503      |
| Other pension costs                               | 3,392      | -         | 3,392      |
| Sub total                                         | 24,015     | 1,029     | 25,044     |
| Less recoveries in respect of outward secondments | (87)       |           |            |
| -                                                 |            |           |            |
| (87)                                              | (289)      |           |            |
| Total net costs                                   | 23,928     | 1,029     | 24,957     |
|                                                   |            |           |            |
| Charged to                                        | Charged to |           |            |
| administration                                    | programme  |           |            |
| of which:                                         | budgets    | budgets   | Total      |
|                                                   | £000       | £000      | £000       |
| Total                                             | 5,241      | 19,716    | 24,957     |

Zero staff costs were capitalised during the year

a)	The Principal Civil Service Pension Scheme (PCSPS) is an unfunded multi-employer defined benefit scheme. 
In common with other government departments, The National Archives cannot identify its share of the underlying assets and liabilities. A full actuarial valuation of the scheme was carried out as at 31 March 
2012 by the scheme's actuary, Aon Hewitt, in line with directions made by HM Treasury, under the Public Service Pensions Act 2013. The valuation indicated that there will be an increase of 2.2 percentage points in the average employer contribution rate paid to the scheme from 1 April 2015, with the average employer contribution rising from 18.9% to 21.1%. The full results of the valuation, which also set an employer cost cap for the scheme, can be found at www.civilservicepensionscheme.org.uk  
b)	For 2014-15, employers' contributions of £3,310k were payable to the PCSPS (2013-14: £3,199k) at one 

of four rates in the range 16.7 to 24.3% (2013-14: 16.7 to 24.3%) of pensionable pay, based on salary bands. The Scheme Actuary reviews employer contributions usually every four years following a full scheme valuation. The salary bands and contribution rates are set to meet the cost of the benefits accruing during 2014-15 to be paid when the member retires and not the benefits paid during this period to existing pensioners. 
c)	Employees can opt to open a partnership pension account - a stakeholder pension with an employer 
contribution. During 2014-15, employers' contributions of £76k (2013-14: £91k) were paid to one or more of a panel of three appointed stakeholder pension providers. Employer contributions are age-related and range from 3 to 12.5% of pensionable pay. Employers also match employee contributions up to 3% of pensionable pay. In addition, employer contributions of £5k (2013-14: £6k), 0.8% (2013-14: 0.8%) of pensionable pay, were payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service and ill-health retirement of these employees. 
Contributions due to the partnership pension providers at the end of the reporting date were £8k (2013-14: £12k). Contributions pre-paid at that date were nil. 

## Average Full-Time Equivalent Number Of Persons Employed

The average number of whole-time equivalent persons employed during the year was as follows.

| Permanently                       | Others    |
|-----------------------------------|-----------|
| 32                                |           |
| 2014-15                           | 2013-14   |
| employed staff                    | Total     |
| Government information management | 100       |
| Preservation and protection       | 96        |
| Public access                     | 329       |
| Total                             | 525       |

 3.1 Reporting of Civil Service and other compensation schemes - exit packages
(numbers in brackets are comparatives for 2013-14)

Exit package cost band
Number of 
Number of other 
Total number of exit 
compulsory 
departures agreed
packages by cost 
redundancies
band
< £10,000
- (-)
- (-)
- (-)
£10,000 - £24,999
- (-)
2 (2)
2 (2)
£25,000 - £49,999
2 (-)
1 (2)
3 (2)
£50,000 - £99,999
- (-)
1 (-)
1 (-)
£100,000 - £149,999
- (-)
- (-)
- (-)
£150,000 - £200,000
- (-)
- (-)
- (-)
Total number of exit packages by type
2 (-)
4 (4)
6 (4)
Total resource cost - £
78,360  (-)
127,565 (95,084)
205,925 (95,084)

Redundancy and other departure costs have been paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. Exit costs are accounted for in full in the year of departure. Where the department has agreed early retirements, the additional costs are met by the department and not by the civil service pension scheme. Ill-health retirement costs are met by the pension scheme and are not included in the table.

## 4. Other Administration Costs

|                                        |       | 2014-15   | 2013-14    |
|----------------------------------------|-------|-----------|------------|
| £000                                   | £000  | £000      | £000       |
| Non-cash items                         |       |           |            |
| Depreciation and amortisation          |       |           |            |
| - Civil Estate                         | 720   | 640       |            |
| - Other non-current assets             | 379   | 386       |            |
| Auditor's remuneration - audit work    | 48    | 48        |            |
|                                        | 1,147 |           | 1,074      |
| Other expenditure                      |       |           |            |
| IT maintenance                         | 777   | 706       |            |
| Accommodation and building maintenance | 324   | 339       |            |
| Recruitment and training               | 264   | 251       |            |
| Minor software and hardware            | 169   | 119       |            |
| Telecommunications                     | 166   | 177       |            |
| Internal audit                         | 40    | 48        |            |
| Travel, subsistence and hospitality    | 22    | 27        |            |
| Legal expenses                         | 3     | 24        |            |
| Advertising                            | 40    | 51        |            |
| Consultancy                            | -     | 14        |            |
| Other contracted services              | 109   | 39        |            |
| Postage                                | 8     | 10        |            |
| Grants paid                            | 15    | 20        |            |
| Film & internet  archiving             | 5     | -         |            |
| Subscriptions                          | 43    | 39        |            |
| Other expenditure                      | 324   | 420       |            |
| 2,309                                  |       | 2,284     |            |
| 3,456                                  | 3,358 |           |            |

## 5. Programme Costs

|                                                  |        | 2014-15   | 2013-14    |
|--------------------------------------------------|--------|-----------|------------|
| £000                                             | £000   | £000      | £000       |
| Rentals under operating leases                   |        |           |            |
| Hire of plant and machinery                      | 47     | 89        |            |
|                                                  | 47     |           | 89         |
| Non-cash items:                                  |        |           |            |
| Depreciation and amortisation                    |        |           |            |
| - Civil Estate                                   | 2,880  |           | 2,562      |
| - Other non-current assets                       | 1,517  |           | 1,545      |
| Loss on disposal of non-current assets           | 175    |           | 357        |
| Provisions                                       |        |           |            |
| - Provided in year                               | 610    |           | 13         |
|                                                  | 5,182  |           | 4,477      |
| Other expenditure                                |        |           |            |
| Accommodation and building maintenance           | 5,992  | 6,254     |            |
| Public access                                    | 926    | 1,019     |            |
| IT maintenance                                   | 585    | 681       |            |
| Travel, subsistence and hospitality              | 298    | 299       |            |
| Recruitment and training                         | 45     | 26        |            |
| Digitisation & scanning                          | 108    | 145       |            |
| Shop stores                                      | 169    | 159       |            |
| Conferences                                      | 52     | 47        |            |
| Minor software and hardware                      | 63     | 95        |            |
| Record copying materials                         | 2      | 2         |            |
| Legal expenses                                   | 122    | 122       |            |
| Website hosting                                  | 387    | 360       |            |
| Film and internet archiving                      | 608    | 958       |            |
| Conservation & preservation materials            | 45     | 51        |            |
| Other contracted services                        | 988    | 622       |            |
| Minor furniture, equipment & related maintenance | 190    | 200       |            |
| Postage, stationery and store supplies           | 236    | 229       |            |
| Grants paid                                      | 373    | 393       |            |
| Subscriptions                                    | 102    | 95        |            |
| Royalties                                        | 92     | 84        |            |
| Other expenditure                                | 517    | 484       |            |
| 11,900                                           | 12,325 |           |            |
|                                                  | 17,129 | 16,891    |            |

## 6. Income

| 2014-15                                                                 | 2013-14   |
|-------------------------------------------------------------------------|-----------|
| £000                                                                    | £000      |
| Operating income analysed by classification and activity, is as follows |           |
| Income:                                                                 |           |
| Fees and charges to external customers                                  | 10,323    |
| Fees and charges to other government departments                        | 545       |
| EU Funding income                                                       | 4         |
| 10,872                                                                  | 10,635    |
| a)	An analysis of operating income from services provided is as follows:                                                                         |           |
| 2014-15                                                                 | 2014-15   |
| Income                                                                  | Full cost |
| £000                                                                    | £000      |
| Reprographic services                                                   | 787       |
| 8                                                                       |           |
| Information and publishing                                              | 6,670     |
| 2,839                                                                   |           |
| Externally funded projects                                              | 1,445     |
| (65)                                                                    |           |
| Other                                                                   | 1,970     |
| -                                                                       |           |
| 10,872                                                                  | 8,090     |
| 2,782                                                                   |           |
| 2013-14                                                                 | 2013-14   |
| Income                                                                  | Full cost |
| £000                                                                    | £000      |
| Reprographic services                                                   | 870       |
| 63                                                                      |           |
| Information and publishing                                              | 7,031     |
| 3,159                                                                   |           |
| Externally funded projects                                              | 993       |
| (52)                                                                    |           |
| Other                                                                   | 1,741     |
| -                                                                       |           |
| 10,635                                                                  | 7,465     |
| 3,170                                                                   |           |

b)	The National Archives is required, in accordance with HM Treasury's Fees and Charges Guide and 
recommendations relating to Public Sector Information Holders, to disclose performance results for its areas of activity. The segmental analysis is not intended to meet the requirements of International Financial reporting Standard 8: Operating segments.

## 7. Property, Plant And Equipment

| Land              | Buildings    | Plant and
           | Furniture    | Transport
       | Information    | Assets
         | Total         |
|-------------------|--------------|-----------|--------------|-------|----------------|---------|---------------|
| machinery         | and          | equipment | technology   | under |                |         |               |
| fittings          | construction |           |              |       |                |         |               |
| £000              | £000         | £000      | £000         | £000  | £000           | £000    | £000          |
| Cost or valuation |              |           |              |       |                |         |               |
| At 1 April 2014   | 18,200       | 114,432   | 8,682        | 7,709 | 161            | 9,166   | 1,497         |
| Additions         | -            | -         | 752          | 48    | -              | 56      | 1,126         |
| Reclassification  | -            | -         | 1,345        | -     | -              | 152     | (1,497)       |
| Disposals         | -            | (31)      | (315)        | (31)  | -              | (2,764) | -             |
| Revaluation       | -            | 14,643    | -            | -     | -              | -       | -             |
| At 31 March 2015  | 18,200       | 129,044   | 10,464       | 7,726 | 161            | 6,610   | 1,126         |
| Depreciation      |              |           |              |       |                |         |               |
| At 1 April 2014   | -            | 6,389     | 3,398        | 2,967 | 110            | 6,341   | -             |
| Charged in year   | -            | 3,600     | 833          | 185   | 15             | 827     | -             |
| Reclassification  | -            | -         | -            | -     | -              | -       | -             |
| Disposals         | -            | (1)       | (285)        | (30)  | -              | (2,684) | -             |
| Revaluation       | -            | 817       | -            | -     | -              | -       | -             |
| At 31 March 2015  | -            | 10,805    | 3,946        | 3,122 | 125            | 4,484   | -             |
| Net Book Value    |              |           |              |       |                |         |               |
| at 31 March 2015  | 18,200       | 118,239   | 6,518        | 4,604 | 36             | 2,126   | 1,126         |
| Net Book Value    |              |           |              |       |                |         |               |
| at 31 March 2014  | 18,200       | 108,043   | 5,284        | 4,742 | 51             | 2,825   | 1,497 140,642 |
| Land              | Buildings    | Plant and
           | Furniture    | Transport
       | Information    | Assets
         | Total         |
|-------------------|--------------|-----------|--------------|-------|----------------|---------|---------------|
| machinery         | and          | equipment | technology   | under |                |         |               |
| fittings          | construction |           |              |       |                |         |               |
| £000              | £000         | £000      | £000         | £000  | £000           | £000    | £000          |
| Cost or valuation |              |           |              |       |                |         |               |
| At 1 April 2013   | 18,200       | 102,484   | 9,024        | 7,659 | 177            | 11,640  | 2,254         |
| Additions         | -            | 131       | 89           | 153   | -              | 415     | 1,497         |
| Reclassification  | -            | 31        | -            | 41    | -              | 2,132   | (2,204)       |
| Disposals         | -            | -         | (431)        | (144) | (16)           | (5,021) | (50)          |
| Revaluation       | -            | 11,786    | -            | -     | -              | -       | -             |
| At 31 March 2014  | 18,200       | 114,432   | 8,682        | 7,709 | 161            | 9,166   | 1,497         |
| Depreciation      |              |           |              |       |                |         |               |
| At 1 April 2013   |              | 2,858     | 2,885        | 2,915 | 108            | 10,339  | -             |
| Charged in year   | -            | 3,202     | 701          | 182   | 15             | 987     | -             |
| Disposals         | -            | -         | (188)        | (130) | (13)           | (4,985) | -             |
| Revaluation       | -            | 329       | -            | -     | -              | -       | -             |
| At 31 March 2013  | -            | 6,389     | 3,398        | 2,967 | 110            | 6,341   | -             |
| Net Book Value    |              |           |              |       |                |         |               |
| at 31 March 2014  | 18,200       | 108,043   | 5,284        | 4,742 | 51             | 2,825   | 1,497 140,642 |
| Net Book Value    |              |           |              |       |                |         |               |
| at 31 March 2013  | 18,200       | 99,626    | 6,139        | 4,744 | 69             | 1,301   | 2,254         |

## Notes

a)	Freehold land and buildings were valued on 31 March 2012 at £121 million on the basis of depreciated 
replacement cost by an external firm of chartered surveyors, BNP Paribas Real Estate UK. Their valuation was carried out in accordance with the *Appraisal and Valuation Manual* issued by the Royal Institution of Chartered Surveyors. In years where there is no professional valuation exercise, revaluation is derived from the relevant indices as appropriate except for land for the reasons stated in the accounting policy 1.2.
b)	All non-current assets are implicitly owned by The National Archives. There are no leased assets.

## 8. Intangible Assets

| Software                        | Revenue-    | Licences
          | Assets under    | Total   |
|---------------------------------|-------------|----------|-----------------|---------|
| licences                        | generating  | issued   | construction    |         |
| databases                       |             |          |                 |         |
| £000                            | £000        | £000     | £000            | £000    |
| Cost or valuation               |             |          |                 |         |
| At 1 April 2014                 | 767         | 3,142    | 18,283          | 80      |
| Additions                       | -           | -        | -               | 25      |
| Reclassifications               | 80          | -        | -               | (80)    |
| Disposals                       | (661)       | -        | -               | -       |
| Impairments                     | -           | -        | -               | -       |
| Revaluation                     | -           | (272)    | 830             | -       |
| At 31 March 2015                | 186         | 2,870    | 19,113          | 25      |
| Amortisation                    |             |          |                 |         |
| At 1 April 2014                 | 649         | -        | -               | -       |
| Charged in year                 | 37          | -        | -               | -       |
| Disposals                       | (627)       | -        | -               | -       |
| Revaluation                     | -           | -        | -               | -       |
| At 31 March 2015                | 59          | -        | -               | -       |
| Net Book Value at 31 March 2015 | 127         | 2,870    | 19,113          | 25      |
| Net Book Value at 31 March 2014 | 118         | 3,142    | 18,283          | 80      |
|                                 |             |          |                 |         |
| Software                        | Revenue-    | Licences | Assets under    | Total   |
| licences                        | generating  | issued   | construction    |         |
| databases                       |             |          |                 |         |
| £000                            | £000        | £000     | £000            | £000    |
| Cost or valuation               |             |          |                 |         |
| At 1 April 2013                 | 1,833       | 2,065    | 21,631          | 106     |
| Additions                       | 10          | -        | -               | 80      |
| Reclassifications               | 97          | -        | -               | (97)    |
| Disposals                       | (1,173)     | -        | -               | (9)     |
| Impairments                     | -           | -        | -               | -       |
| Revaluation                     | -           | 1,077    | (3,348)         | -       |
| At 31 March 2014                | 767         | 3,142    | 18,283          | 80      |
| Amortisation                    |             |          |                 |         |
| At 1 April 2013                 | 1,774       | -        | -               | -       |
| Charged in year                 | 46          | -        | -               | -       |
| Disposals                       | (1,171)     | -        | -               | -       |
| Impairments                     | -           | -        | -               | -       |
| At 31 March 2014                | 649         | -        | -               | -       |
| Net Book Value at 31 March 2014 | 118         | 3,142    | 18,283          | 80      |
| Net Book Value at 31 March 2013 |             |          |                 |         |
| 59                              | 2,065       | 21,631   | 106             | 23,861  |

## 9. Impairments

There were no impairments in 2014-15.

## 10. Further Information On Heritage Assets

The conservation, preservation and care of this unique and irreplaceable collection is a challenging responsibility, given the age and original condition of some of the artefacts. Matched to the responsibilities of providing access, it means The National Archives has a constant challenge to improve catalogues and environmental repositories, and to respond to stakeholder interests. We have a dedicated team responsible for the long-term preservation of The National Archives collection for continued access and future use and we improve the stability of our most vulnerable records through conservation work. In the year to March 2015, we received records covering 800 metres of shelving (882 metres in 2013-14). During the year we took 1,447 snapshots of websites and social media accounts for the UK Government Web Archive (1,076 in 2013-14). 

10.1. Preservation and management Acquisition of heritage assets is through government bodies selecting records for permanent preservation and transferring these records to The National Archives. In January 2013 central government began a ten-year transition, during which the age at which records would usually be transferred to The National Archives and released to the public is being reduced from 30 years to 20 years (however, many are transferred early). The records held by The National Archives span over 1,000 years and fill around 200 linear kilometres of shelving on site at Kew and at the Deepstore facility in Cheshire. They are held in many formats from medieval vellum and parchment to computer disks and digital media. They are made up of a variety of items ranging from traditional paper records to seals, maps, costumes, paintings, films, items of court evidence, etc. The heritage assets can be placed in the categories of:

	 Files and paper documents 
The National Archives adopts a risk-based approach in preserving its records; both physical and digital. For physical records this consists of conducting a preservation risk assessment for whole collections which are subsequently reviewed periodically. Likewise, digital records are assessed on a regular basis. The National Archives adopts a combined approach of preventative measures and conservation treatments.

	 Digital records and websites Photographs and posters Maps, plans and architectural drawings Artefacts and historical items 
Our digital preservation policy follows current best practice as recognised nationally and internationally. It involves first establishing the file formats of the accessioned records and then preserving the original manifestation of the record using passive 'bit level' preservation; this ensures the secure storage and fundamental integrity of the record. As with physical records, a regular assessment of the risk of records becoming unfit for presentation is made and should a format be identified as posing a risk, action to migrate records in that format (or to otherwise mitigate that risk) is taken. The National Archives will always maintain the original manifestation of the record as accessioned. Expenditure which is required to preserve or clearly prevent further deterioration of individual collection The National Archives is the guardian of the nation's public record. Its core role includes preserving and protecting, making available, and bringing alive the vast collection of historical records held. Most of the records are unique and irreplaceable and have been preserved for their historical, legal and administrative value. Increasingly, access to the most popular of these is provided to researchers in digital format, and The National Archives also takes the lead role dealing with the issues associated with the survival and preservation of today's digital public records - tomorrow's permanent preserved record.

items is recognised in the Statement of Comprehensive Net Expenditure when it is incurred. In 2014-15 £1,730k was recognised (2013-14: £1,590k). We recognise that of all potential risks to the long-term preservation of our physical records, inappropriate storage is the most significant. We seek appropriate and secure accommodation for all our holdings, wherever they are stored, processed, transported or used. This includes providing suitable environmental conditions and appropriate housing. It also includes monitoring via an integrated pest management programme and an environmental monitoring system. Section 2(4)(g) of the Public Records Act 1958 states that the Chief Executive of The National Archives (in his capacity as Keeper of Public Records) is empowered to lend documents for display at commemorative exhibitions and for other special purposes subject to the approval of the Lord Chancellor. All loans are conducted in accordance with The National Archives exhibitions policy. Note 10.2. Access Details of the records we hold can be obtained through our online catalogue Discovery. All open records are available for viewing by members of the public and can be viewed free of charge on site at Kew or copies can be requested to be sent out for a fee. Digital copies of some of our open documents are also available for download from our online services - some may be downloaded for free and some for a small fee. A brief registration process is required to consult original documents; however this is not required to view surrogates or online copies of documents. Access to the records is provided in a number of ways; both on site and online. Original documents on site are accessed by readers or staff under controlled conditions in accordance with nationally recognised and agreed standards. Our target is to retrieve documents held on site within sixty minutes of the request being made and we consistently perform favourably against this. For documents kept at our off-site storage facility in Cheshire, documents requested are made available for on site viewing within three working days if ordered by 11:00. Readers use the document reading room and the map and large document reading room to consult original documents. In some cases valuable or fragile material may only be consulted under supervision either within the conservation studio or in the invigilation room. In instances where digital records are unsuitable for online presentation, they may only be viewed within the Digital Preservation department. There are ongoing projects to catalogue more of our heritage assets, many using volunteers, to further improve access to records and we have a dedicated catalogue team responsible for this.

## 11. Capital And Other Commitments

11.1 Capital commitments Contracted capital commitments at 31 March 2015 not otherwise included in these financial statements are as follows

| 2014-15                       | 
      |     2013-14
 |
|-------------------------------|------|-----|
| £000                          | £000 |     |
| Property, plant and equipment | -    | 150 |

11.2 Other financial commitments The National Archives entered into non-cancellable contracts (which are not lease or PFI contracts) for a Facilities Management service. The payments to which The National Archives is committed, analysed by the period during which the commitment expires are as follows:

| 2014-15                     | 
       | 2013-14
       |
|-----------------------------|-------|-------|
| £000                        | £000  |       |
| Not later than one year     | 1,068 | 1,402 |
| Later than one year and not |       |       |
| later than five years       | -     | 1,051 |
| 1.068                       | 2,453 |       |

## 12. Financial Instruments

Interest rate risk The National Archives is not exposed to any interest rate risk. 

As the cash requirements of The National Archives are met through the Estimates process, financial instruments play a more limited role in managing risk than would apply to a non-public sector body of a similar size. The majority of financial instruments relate to contracts to buy non-financial items in line with The National Archives' expected purchase and usage requirements and The National Archives is therefore exposed to little credit or liquidity risk.

Foreign currency risk The National Archives is exposed to currency risk on overseas royalty income received from some of its licences issued. The identifiable risk is both to the valuation of the associateships on the Statement of Financial Position and to the income recorded in the Statement of Comprehensive Net Expenditure. There is a risk to the amount of income recognised due to currency fluctuations during the year: however, this risk is minimal. If the pound was to fall against the dollar significantly, the reduction in the valuation would be taken against the revaluation reserve. These risks are managed by using a historical trend analysis on exchange rates to estimate appropriate amounts to use in valuations undertaken.

## 13. Cash And Cash Equivalents

Market risk The intangible asset valuations of revenue-generating databases and licences issued are based on forecasts of future revenue-generating capacity, discounted as appropriate. The forecast cashflows estimated are subject to market conditions as they are dependent on customer use of the products offered - both existing and new. The growth rate applied to the forecasting model is a weighted average of the final three years of the five-year actual forecast royalty income. Below is a sensitivity analysis of the effects of changes in the forecast assumptions on the amounts disclosed in the accounts. 

|                                         | Market risk - assumptions tested   | Increase /    |
|-----------------------------------------|------------------------------------|---------------|
| Balance at 1 April                      | 110                                | 12            |
| (decrease)                              |                                    |               |
| in 2014-15                              |                                    |               |
| valuation                               |                                    |               |
| Net change in                           |                                    |               |
| and cash equivalents                    | (65)                               | 98            |
| Balance at 31 March                     | 45                                 | 110           |
| 2014-15 income 10% less than forecast   |                                    |               |
| for revenue-generating databases        | (287)                              |               |
| The following balances                  |                                    |               |
| at 31 March are held at:                |                                    |               |
| 2014-15 income 10% higher than forecast |                                    |               |
| for revenue-generating databases        | 287                                |               |
| Government Banking Service              | 37                                 | 103           |
| Cash in hand                            | 8                                  | 7             |
| 2014-15 income 10% less than forecast   |                                    |               |
| for licences                            | (2,001)                            |               |
| Balance at 31 March                     | 45                                 | 110           |
| 2014-15 income 10% higher than forecast |                                    |               |
| for licences                            | 2,001                              |               |
| 2014-15   | 
      |
|-----------|------|
| £000      | £000 |

## 14. Trade Receivables, Financial And Other Assets

| 2014-15                                                     | 
       | 2013-14
       |
|-------------------------------------------------------------|-------|-------|
| £000                                                        | £000  |       |
| Amounts falling due within one year                         |       |       |
| Trade receivables                                           | 235   | 411   |
| Other receivables                                           | 18    | 7     |
| Deposits and advances                                       | 46    | 65    |
| Prepayments and accrued income                              | 2,079 | 2,477 |
| Amounts due from the Consolidated Fund in respect of supply | -     | -     |
|                                                             | 2,378 | 2,960 |
| Amounts falling due after one year                          |       |       |
| Prepayments and accrued income                              | 420   | 123   |
| 420                                                         | 123   |       |
| Total receivables                                           | 2,798 | 3,083 |

## 14.1 Intra-Government Balances

| 2014-15                                              | 
       | 2013-14
         |
|------------------------------------------------------|-------|---------|
| Intra-government balances falling within one year    | £000  | £000    |
| Balances with other central government bodies        | 489   | 301     |
| Balances with local authorities                      | -     | -       |
| Balances with NHS Trusts                             | -     | -       |
| Balances with public corporations and trading funds  | 7     | -       |
| Intra-government balances                            | 496   | 301     |
| Balances with bodies external to government          | 1,882 | 2,659   |
| Total receivables and current assets at 31 March     | 2,378 | 2,960   |
|                                                      |       |         |
| 2014-15                                              |       | 2013-14 |
| Intra-government balances falling due after one year | £000  | £000    |
| Balances with other central government bodies        | -     | -       |
| Balances with local authorities                      | -     | -       |
| Balances with NHS bodies                             | -     | -       |
| Balances with public corporations and trading funds  | -     | -       |
| Intra-government balances                            | -     | -       |
| Balances with bodies external to government          | 420   | 123     |
| Total non-current receivables at 31 March            | 420   | 123     |
| Total receivables                                    | 2,798 | 3,083   |

## 15. Trade Payables And Other Current Liabilities

| 2014-15                                                                                    | 
       | 2013-14
       |
|--------------------------------------------------------------------------------------------|-------|-------|
| Amounts falling due within one year                                                        | £000  | £000  |
| Other Taxation, Social Security and Pension                                                | 989   | 955   |
| Trade payables                                                                             | 983   | 510   |
| Accruals and deferred income                                                               | 3,200 | 4,137 |
| Short-term staff benefits (earned leave liability)                                         | 884   | 836   |
| Amounts issued from the Consolidated Fund for supply but not spent at year end             | 45    | 59    |
| Consolidated Fund extra receipts and other amounts due to be paid to the Consolidated Fund |       |       |
| - received                                                                                 | -     | 51    |
| - receivable                                                                               | -     | -     |
| 6,101                                                                                      | 6,548 |       |
| Amounts falling due after one year                                                         |       |       |
| Deferred income                                                                            | 779   | 1,121 |
|                                                                                            | 779   | 1,121 |
| Total payables                                                                             | 6,880 | 7,669 |

## 15.1 Intra-Government Balances

| 2014-15                                              | 
       | 2013-14
         |
|------------------------------------------------------|-------|---------|
| Intra-government balances falling within one year    | £000  | £000    |
| Balances with other central government bodies        | 1,206 | 1,757   |
| Balances with local authorities                      | 4     | 41      |
| Balances with NHS bodies                             | -     | -       |
| Balances with public corporations and trading funds  | 202   | 8       |
| Intra-government balances                            | 1,412 | 1,806   |
| Balances with bodies external to government          | 4,689 | 4,742   |
| Total payables and other current liabilities         | 6,101 | 6,548   |
|                                                      |       |         |
| 2014-15                                              |       | 2013-14 |
| Intra-government balances falling due after one year | £000  | £000    |
| Balances with other central government bodies        | -     | 40      |
| Balances with local authorities                      | -     | -       |
| Balances with NHS bodies                             | -     | -       |
| Balances with public corporations and trading funds  | -     | -       |
| Intra-government balances                            | -     | -       |
| Balances with bodies external to government          | 779   | 1,081   |
| Total non-current payables at 31 March               | 779   | 1,121   |
| Total payables                                       | 6,880 | 7,669   |

## 16. Provisions For Liabilities And Charges

| Amounts falling due within one year                  | Early retirement costs   | Onerous lease   | Total   |
|------------------------------------------------------|--------------------------|-----------------|---------|
| Balance at 1 April 2014                              | 52                       | -               | 52      |
| Provided in year                                     | 74                       | 536             | 610     |
| Provisions utilised in year                          | (34)                     | -               | (34)    |
| Balance as at 31 March 2015                          | 92                       | 536             | 628     |
| Analysis of expected timing of discounted cash flows | 2014-15                  | 2013-14         |         |
| Not later than one year                              | 142                      | 27              |         |
| Later than one year                                  | 486                      | 25              |         |
| Balance as at 31 March                               | 628                      | 52              |         |

## Early Retirement Costs

The provision in the table above relates to early retirement cost. The National Archives meets the additional costs of benefits beyond the normal PCSPS benefits in respect of employees who retire early by paying the required amounts annually to the PCSPS over the period between early departure and normal retirement date. The National Archives provides for this in full when the early retirement programme becomes binding by establishing a provision for the estimated payments.

## Onerous Lease

The onerous lease relates to a vacation of office space within a government building in Norwich. The lease runs until December 2023. The provision is calculated by taking the unavoidable cost that will be incurred under the contract discounted by HM Treasury real discount rate of -1.05 per cent.  

## 17. Contingent Liabilities

There were no contingent liabilities at the reporting date (2013-14: estimated £107,000 relating to staff compensation payments).

## 18. Losses And Special Payments

No exceptional kinds of expenditure, such as losses and special payments that required separate disclosure because of their nature or amount, were incurred. 

## 19. Related-Party Transactions

The National Archives is a non-ministerial government department and an executive agency of the Ministry of Justice. The Chief Executive and Keeper reports to the Lord Chancellor. The National Archives has had a number of transactions with other government departments and other central government bodies.

During the year, the Arts and Humanities Research Council (AHRC) provided grant funding totalling £684,800 for three projects. No further monies are committed. Trevor Spires acts as AHRC's Chair of Audit Committee and was not in attendance at meetings where The National Archives discussed its bid for funding from ARHC. No other management board member, key managerial staff or other related party has undertaken any material transactions with The National Archives during the year.

## 20. Third Party Assets

The National Archives held short-term monetary assets valued at £15,648 on behalf of other government departments at the end of the reporting period (£28,338 at 31 March 2014).

|              | 31 March 2014
      | Gross inflows    | Gross outflows    | 31 March 2015    |
|--------------|------|------------------|-------------------|------------------|
|              | £000 | £000             | £000              | £000             |
| Bank balance | 28   | 81               | 94                | 15               |
|              | 28   | 81               | 94                | 15               |

## 21. Events After The Reporting Period Date

There are no non-adjusting or adjusting events after the reporting period. 

## Annex A Sustainability Accounting And Reporting Sustainability Accounting And Reporting

This annex describes our approach to sustainability, the targets we are working towards, and the progress we have made during 2014-15 and our plans for the new financial year. Further information relating to our sustainability performance, plans and policies may be found on our website. This report was prepared in accordance with HM Treasury financial reporting (FReM) requirements and the operational information presented aligns with our performance reporting in respect of our Greening Government Commitments - the targets and requirements set by Cabinet Office for all central government departments to meet the overarching Vision for Sustainability. The National Archives is firmly committed to embedding the principles of sustainable development throughout its plans, policies and operations. Challenging sustainability targets are incorporated into our business plans and our performance is subject to regular internal and external scrutiny. 

## Governance And Reporting

Our key sustainability targets are summarised within business plans and performance is regularly reviewed throughout the year. Our Executive Team reviews our sustainability performance on a monthly basis. Our Management Board and Audit Committee review our sustainability performance at six-monthly intervals, monitoring progress and challenging where appropriate. As a non-ministerial government department, and an executive agency of the Ministry of Justice, The National Archives is committed to meeting, and exceeding where practical, the Greening Government Commitments. Progress about our performance is fed quarterly via the Ministry of Justice to Cabinet Office who prepare an annual report for central government. Information on our sustainability performance is made available on the transparency pages of our website, and summarised in this annex to our annual report and accounts. The National Archives is an active participant in the cross-Whitehall Sustainability Group, sharing best practice and benefiting from lessons learned from other private and public sector organisations. 

## Accuracy

While we improve our data capture processes year on year, and have made considerable progress in doing so, there will always be aspects of our data that involve some estimation or conversions that introduce the potential for error. For example, in order to calculate the weight of food waste we recycle each year, we multiply the number of collections by a typical bin weight. It is not practical for each consignment to be weighed before collection. Where estimation and conversion techniques are used, we will make clear the reason for doing so and aim to explain how this may affect the accuracy of the information presented. Similarly, where changes in the approach to the data capture process take place, such as the recent changes for greenhouse gas emissions from electricity generation, these will also be noted. 

## Our Sustainability Strategy And Targets

As a government department and an executive agency of the Ministry of Justice, we play our part in achieving the Greening Government Commitments: a set of targets and outcomes that help central government meet the Vision for Sustainability, published by the government in 2011. Our business plan cites the Greening Government Commitments - and our aspiration to meet or exceed them. In addition, we intend to embed sustainability through adopting best practices and approaches set out in the Government's Greening Government Information and Communication Technology Strategy, and through sustainability appraisals of key projects and procurement activities.

## Summary Of Performance

We have met or exceeded the Greening Government Commitments targets. A summary of our performance is shown in the tables below.

| Indicator                |    Reduction
 |
|--------------------------|----|
| target %                 |    |
| Greenhouse gas emissions | 25 |
| Waste produced           | 25 |
| Water used               | 20 |
| Domestic flights taken   | 20 |

## Our Performance In Detail

| Indicator                  | 2014-15   | 2014-15 per FTE    |
|----------------------------|-----------|--------------------|
| Greenhouse gas emissions - |           |                    |
| copes 1-3 tCO              |           |                    |
| 2                          |           |                    |
| e                          | 4,290     | 7.0                |
| Energy used: MWh           | 10,246    | 16.7               |
| Waste produced*            | 129       | 0.2                |
| **Water used m             |           |                    |
| 3                          |           |                    |
| 17,878                     | 29.1      | 22,316             |
| Domestic flights taken     | 69        | 0.1                |

* Excludes construction and refurbishment project waste to enable meaningful comparison ** Water consumption per FTE employee does not take into account the circa 90,000 public visitors per year

| Baseline Improvement on    | Improvement    |
|----------------------------|----------------|
| baseline %                 | compared with  |
| 2013-14 %                  |                |
| 2013-14                    | 2013-14 per    |
| employee                   | FTE employee   |

## Greenhouse Gas Emissions

Our target was to reduce greenhouse gas emissions from building energy use and domestic business travel by 25 per cent, against the 2009-10 baseline levels, by April 2015 and to continue to reduce emissions year on year. This target has been significantly over achieved, with a reduction of 46 per cent against the baseline.

| Indicator                                         | 2014-15   | 2013-14
         |
|---------------------------------------------------|-----------|---------|
| (restated)*                                       |           |         |
| Gross emissions for scope 1 and 2                 | 3,862     | 3,550   |
| tonnes CO                                         |           |         |
| 2                                                 |           |         |
| e                                                 |           |         |
| Gross emissions for scope 3                       | 428       | 424     |
| Electricity: non-renewable                        | 6,081     | 6,002   |
| consumption: MWh                                  |           |         |
| Electricity: renewable                            | 0         | 0       |
| Electricity: good-quality combined heat and power | 284       | 378     |
| Natural gas                                       | 3,880     | 3,843   |
| Financial indicators: £                           | Energy    | 863,729 |
| Carbon Reduction Commitment allowances            | 63,561    | 47,521  |
| Business travel                                   | 117,664   | 141,844 |

*	All carbon figures have been restated in accordance with recent changes to Defra's methodology for company reporting. We continue to actively manage emissions through effective management of our buildings and travel.

High-level support for our emissions reduction activities, from both the Executive Team and Management Board, means that this strategy is embedded into the business decisions. Energy consumption over the past 12 months has remained relatively consistent with a small increase over the 2013-14 year.

33	In accordance with Defra reporting guidance, electricity grid supply is considered non-renewable.

## Waste Minimisation And Management

We set a target of reducing our operational waste production by 25 per cent, against 2010-11 baseline levels, by April 2015. Our waste production has fallen by 27 per cent against the baseline.

|                                        | Indicator   | 2014-15   | 2013-14                        |
|----------------------------------------|-------------|-----------|--------------------------------|
| Operational waste: tonnes              | Total       | 128.5     | 120.2                          |
| Recycled and reused                    | 67.2        | 45.1      |                                |
| Energy from waste incineration         | 47.9        | 50.9      |                                |
| Food and catering: anaerobic digestion | 11.2        | 12.3      |                                |
| Composted                              | 2.2         | 1.0       |                                |
| Landfill                               | 0           | 10.9*     |                                |
| Total                                  | 39.1        | 72.1      | Construction and refurbishment |
| projects waste: tonnes                 |             |           |                                |
| Recycled and reused                    | 38.6        | 57.7      |                                |
| Landfill                               | 0.5         | 14.4      |                                |
| Operational waste expenditure: £#      | Total       | 29,652    | 30,728                         |
| Recycled and reused                    | 10,214      | 8,758     |                                |
| Energy from waste incineration         | 9,210       | 9,834     |                                |
| Food and catering: anaerobic digestion | 1,728       | 1,602     |                                |
| Landfill                               | 0           | 2,356     |                                |

*	Organic waste from grounds maintenance - not suitable for composting. #	Spend data obtained from our Facilities Management contract provider. Total includes the cost of storage and containment. While our total waste output increased slightly compared with the previous year, our recycling performance improved and we have met the government target. This year we have worked with our key suppliers to make sure that packaging and deliveries to our site are minimised, and materials used are recycled and environmentally responsible.

## Use Of Finite Resources

| Indicator                      | 2014-15   | 2013-14   |
|--------------------------------|-----------|-----------|
| Water consumption: m           |           |           |
| 3                              |           |           |
| 17,878                         | 22,316    |           |
| Water supply costs: £          | 32,527    | 36,779    |
| Paper use: reams A4 equivalent | 3,230     | 3,760     |

We use substantial amounts of water, primarily because of our need to preserve our collection. Our cooling towers use water for evaporative cooling, which is necessary to control temperature and humidity in our repositories. We have completed the replacement of our ageing cooling towers with high-efficiency equivalents. Our reduction in the energy we use for cooling has enabled us to reduce the size of the towers, further reducing their consumption of water. This ongoing water management project has resulted in the achievement of a 20 per cent reduction in water consumption over 2013-14 and a 28 per cent reduction against the baseline year. We have drilled two wells on site to provide water for use in the cooling towers and grounds. One well is now supplying water to the ponds.  The second well will be brought into use in 2015-16, supplying water to our cooling towers.

## Sustainable Procurement

Drawing on our Sustainable Procurement Action Plan published in 2013, we take into account the wholelife cost of goods and services - environmental, social and economic. We continue to work collaboratively with our supply chain ensuring sustainable practices are followed.

## Food, Catering And Cleaning

Our food and catering service achieves the requirements set for government departments within the Greening Government Commitments. Our catering provider supports local suppliers and, where practical, meat and poultry is sourced from UK Farm Assured suppliers. All fish is sourced from sustainable fishing sources. Frozen and dry products are transported using a one-stop approach that reduces transportation mileage. In 2014-15 we introduced waste segregation in our main kitchen. Cleaning services use cleaning products with minimal impact on the environment, minimising energy and water use and using consumables that meet EU Ecolabel standards.

## Biodiversity Greening Information And Communication Technology (Ict)

Since we published our Biodiversity Action Plan in 2010 we have transformed the biodiversity value of our Kew site. In 2014-15 we introduced a variety of native aquatic plants into our ponds to further improve upon the appearance and habitats offered by these bodies of water in previous years. We have also continued to sow wildflower meadows in areas that were previously lawns of low biodiversity value.

## Climate Change Adaptation

We have undertaken projects to refresh our network infrastructure and servers following the best-practice guidance in the Government's Greening ICT workbook. This has enabled significant decommissioning of hardware through retiring of old applications and wider virtualisation of existing services. This has achieved a 25 per cent reduction in the number of servers used to provide existing services. Along with changes to the server room environment, significant savings have been made in power consumption. Where new equipment has been procured, energy efficiency and sustainability considerations were taken into account when selecting the supplier.

The National Archives contributes to the Ministry of Justice's departmental climate change adaptation plan. We have evaluated the likely impact of climate change on our ability to maintain our collection at Kew.  The likelihood of flooding and temperature extremes present the greatest risks to our operations. In 2014-15 we reviewed and updated our Flood Response plan.

Following a competitive tender exercise we appointed a supplier to help reduce energy consumption and carbon footprint in line with the Government's strategic objectives. The supplier will be responsible for providing data centre professional services in relation to our main server room, which houses most of the storage, network and server infrastructure used to deliver corporate and customer-facing technology services. The scope of the project requires the supplier to develop a set of best-practice principles and energy efficiency initiatives which can be implemented throughout the data centre. 

Over recent years we have taken steps to improve the thermal integrity of our buildings, while enhancing the capability of the heating, ventilation and air conditioning systems to maintain appropriate environmental conditions. The upgrade of the cooling towers has provided additional resilience to cope with increased variability in temperatures. In 2014- 15 we carried out an air pressure test of one of our Repository floors to establish the level of air leakage and to inform our plans for building upgrade works. Ongoing work to reduce our energy consumption and improve energy efficiency will help our energy use remain financially sustainable in the years to come.

## Annex B Advisory Council On National Records And Archives 12Th Annual Report 2014-15

To the Right Honourable Michael Gove MP, Lord Chancellor and Secretary of State for Justice THE TWELFTH ANNUAL REPORT OF THE ADVISORY COUNCIL ON NATIONAL RECORDS AND ARCHIVES I enclose a copy of the twelfth Annual Report of the Advisory Council on National Records and Archives. The report covers the period from 1 April 2014 to 31 March 2015. This year has been a challenging one for the Council, with a substantial change in its membership and the impact of the transition to the 20-year rule now being felt. There has also been a renewed focus on records management in government and the Council welcomed the opportunity to discuss its work with Sir Alex Allan as part of his review of departmental processes. With the transition to the 20-year rule now under way, the Council has continued to see its workload increase. During 2014/15 it considered over 5,000 departmental applications for the extended closure or retention of records, an increase of 25% on the previous year. In addition 25 Freedom of Information Panels were convened to consider the public interest in the release of closed information held at The National Archives when this was requested under the Freedom of Information Act. They considered 250 cases in total (an increase of over 70% on 2013/14).      
This year also saw the loss of a number of experienced members who stepped down from the Council at the end of their terms.  I would like to pay tribute to the contribution that Ms Else Churchill, Dr Jeevan Deol, Professor Harry Dickinson, Sir David Durie, Dr Clive Field, Ms Christine Gifford, Mr Hamish Macarthur, Professor Michael Moss and Mr Ian Soutar made to the Council's work during the years that they served. I would also like to thank the remaining members who, through their commitment and hard work, ensured that the Council continued to operate effectively during this period of change. In September, we welcomed eight new members to the Council whose knowledge and experience has already proved valuable to our work. As ever, the Council remains grateful to government departments and The National Archives for handling its queries constructively, and for providing it with detailed information and expert guidance on issues relating to freedom of information, access to records, and archives policy. The Right Honourable Lord Dyson The Master of the Rolls Chairman of the Advisory Council

## Part One - The Advisory Council

The Advisory Council on National Records and Archives (the Council) is an independent body. It advises the Lord Chancellor on issues relating to access to public records and represents the public interest in deciding what records should be open or closed. It was established by the Public Records Act 1958 as a non-departmental public body. 

Principles Openness and objectivity underpin the Council's work in considering applications for the retention or closure of records. The Council's guiding principle is to support information being made public. That principle will only be set aside when there are clear grounds to do so, based on public or the national interest, or sensitivity about personal data. It regularly challenges government departments to provide evidence to justify requests for documents to remain closed.

It is chaired by the Master of the Rolls and has 16 members including historians, archivists, information management professionals, former civil servants and journalists.

Membership The Council is chaired by the Master of the Rolls. It currently has 16 members. 

## The Role Of The Council The Council:

•	Advises the Lord Chancellor on issues relating to 
Members are unpaid but are entitled to make a claim for travel and subsistence expenses incurred through the performance of their duties. These costs are met by The National Archives. 

public records that are over 20 years old (historical public records), including public access to them, at the point of transfer to The National Archives. 
•	Advises on requests from government departments 
to retain historical public records under the Public Records Act. 
•	Advises on the public interest when departments 
want to keep historical public records closed under Freedom of Information Act exemptions. It regularly challenges departments to provide evidence to justify such requests. 
•	Through its sub-committee, the Forum on Historical 
During the period covered by this report, 14 members came to the end of their terms. Of these, nine had either served for the 10-year maximum period permissible under the Office of the Commissioner for Public Appointments (OCPA) rules or did not wish to seek a further term. These members were: Ms Else Churchill, Professor Harry Dickinson, Sir David Durie, Dr Clive Field, Ms Christine Gifford, Mr Hamish Macarthur, Professor Michael Moss and Mr Ian Soutar, who stepped down on 30 June 2014. Dr Jeevan Deol stepped down on 31 December 2014. 

Manuscripts and Academic Research, advises the Chief Executive and Keeper of The National Archives on matters relating to private archives outside the public records system.

To ensure that the Council could continue to operate effectively and would not lose the majority of its experienced membership within a few months, the Lord Chancellor agreed to the following reappointments:

•	Mr Stephen Hawker and Ms Sarah Fahy,

It also supports government departments and The National Archives by providing independent advice and scrutiny on issues relating to records management and archives. 

•	Mr John Collins and Mr John Millen for two

who had both joined the Council in 2011, for a full term of three years until 30 June 2017. years until 31 December 2016. 
•	Professor Arthur Lucas and Mr Graeme Herd 

for one year until 31 December 2015.  
In addition, the Council ran a major recruitment exercise to replace the members whose terms ended in June 2014. Forty-four applications were received and, following interview, eight suitable candidates were recommended to the Lord Chancellor who approved their appointment for a three-year term with effect from 15 September 2014. The current members of the Council are:   

•	Ms Hillary Bauer OBE, Adviser on culture and 
heritage issues; formerly Head of International and Cultural Property Unit, Department for Culture, Media and Sport*
•	Professor Rodney Brazier MVO, Emeritus Professor 
of Constitutional Law, University of Manchester; Fellow of the Royal Historical Society*
•	Mr John Collins CBE, Formerly Deliverer of the 
Vote, House of Commons
•	Mr John Evans, Communications and media 
consultant; formerly Head of Communications at the Olympic Delivery Authority, civil servant and BBC journalist*
•	Ms Sarah Fahy, Global Head of Library Services, 
Know How and Training Department at Allen and Overy LLP
•	Ms Lesley Ferguson, Head of Collections, Royal 
Commission on the Ancient and Historical Monuments of Scotland*
•	Dr Bendor Grosvenor, Art Historian and Adviser on 
Culture Policy
•	Mr Stephen Hawker CB, Independent Consultant 
and former senior civil servant
•	Mr Graeme Herd, Project Manager, North Ayrshire 
Council
•	Dr Elizabeth Lomas, Researcher and Tutor at 
Northumbria University, formerly Head of Records Management Services for the Royal Household
•	Professor Arthur Lucas CBE, Emeritus Professor 
of Science Curriculum Studies at, and formerly Principal of, King's College London
•	Mr John Millen, Formerly Policy Director, Ministry 
of Defence
•	Dr William Peace, Visiting Senior Research Fellow, 
International Centre for Security Analysis, King's College London; formerly Deputy Director for Strategy and Information, Serious Organised Crime Agency*
•	Sir John Ramsden Bt, Formerly HM Ambassador 
to Croatia; formerly Head, Central and North West Europe Department, Foreign and Commonwealth Office*
•	Mr Michael Smyth CBE QC(Hon), Visiting 
Professor, Queen Mary College London; Chairman, Community Links; former Head of Government Practice, Clifford Chance*
•	Mr Trevor Woolley CB, Formerly Director General, 
Ministry of Defence*
*new member The Secretary to the Council is Ms Beth Watson. Openness The Council publishes summaries of meetings on its website. Council members are required to adhere to the Seven Principles of Public Life. A register of members' interests is publicly available on the Council's webpages. Members are also required to declare any individual interests in relation to the applications they consider and to recuse themselves if this is considered necessary in the view of the Chairman and other members. The Council is required to consider requests made to it under the Freedom of Information Act. During this reporting period the Council received and responded to three requests for information.

## Part Two - The Advisory Council'S Work Access To Public Records •	Closure And Retention

	 The Council is responsible for advising the Lord 
Meetings The Council held three meetings during 2014-15: in May and November 2014 and in February 2015. Its scheduled meeting in July 2014 was cancelled but, as part of its continued commitment to examine its working practices, the Council took the opportunity to trial a process by which the closure and retention applications that had been submitted were considered electronically.        

	 Both records retained by departments and those Each year thousands of government records are 
The National Archives' Chief Executive and Keeper attends Council meetings. Following the departure of Oliver Morley in October 2013, Clem Brohier attended our meetings in November 2013 and February and May 2014 as Acting Chief Executive. Following his appointment in July, the Council welcomed Jeff James to its November 2014 and February 2015 meetings. Meetings are also attended by other representatives from The National Archives who have particular expertise related to the issues considered by the Council. Attendees include Carol Tullo, Director of Information Policy and Services; Julia Jones, Head of Information Management and Practice; Stuart Abraham, FOI Centre Manager; Helen Potter, FOI 
Manager; and Sam Whaley, Acting Head of the Chief Executive's Office.     

Chancellor on the application of the Freedom of Information Act 2000 (FOIA) to historical public records. It also advises the Lord Chancellor on applications submitted to him by departments for the retention of public records under the Public Records Act 1958. closed at transfer to The National Archives remain subject to the FOIA and individuals can make an FOI request to access them.   
transferred to The National Archives. The vast majority are transferred open and can be viewed at The National Archives. However, in a small proportion of cases, historical information contained in records which are being transferred attracts certain exemptions under the FOIA, for example personal information or details which could harm the national interest. In these cases government departments must submit an application for permission for the records or extracts to be closed at transfer. Decisions on these requests have been delegated to the Council by the Lord Chancellor.

The table below shows the number of records transferred to The National Archives over the last three financial years, together with the number of applications for closure or retention considered by the Advisory Council, and the number queried by it.  

| Total no of    | 
               | Total no of    | Total no of    |
|----------------|---------------|----------------|----------------|
| records        | closure and   | applications   |                |
| accessioned    |               | retention      | queried by     |
| by The         | applications  | the Advisory   |                |
| National       | considered by |                |                |
| Archives       | the Advisory  |                |                |
| Council        |               |                |                |
| 2012/13        | 38,326        | 2,239          | 91             |
| 2013/14        | 65,545        | 4,062          | 141            |
| 2014/15        | 35,617        | 5,043          | 209            |

*	These applications were agreed by the Advisory Council subject to that clarification or amendment.

This year the Council considered 4,250 applications for extended closure and raised queries on 181 cases. This resulted in five requests for closure being withdrawn and a further 56 being amended so that the closure period was reduced, the reasons for closure more accurately explained, or the amount of information closed reduced (wherever possible the Council asks departments to consider redaction rather than the closure of whole files). There are a number of grounds under which departments can ask to retain records including having an ongoing business need to access them or to allow the department to deal with a review backlog. During the period covered by this report, the Council considered 793 retention applications and raised queries in 28 cases. These challenges led to three requests being withdrawn and four instances of the retention periods being reduced. It is usual practice for members to receive details of applications for extended closure or for retention at least two weeks before a Council meeting to give them sufficient time to consider them. They will then raise any questions or concerns they may have at the meeting. 

| Total no of    | Total no of    | Total no of    |
|----------------|----------------|----------------|
| applications   | applications   | applications   |
| where          | which were     | withdrawn by   |
| clarification  | amended by     | departments    |
| Council        | was received*  | departments*   |
| challenge by   |                |                |
| the Advisory   |                |                |
| Council        |                |                |

The Council will make recommendations only once it is fully satisfied that a department has made a convincing argument for closure or retention. Wherever possible the Council asks departments to consider redaction rather than the closure of whole files. Where members agree that the information given by a department is inadequate or unclear, they will decline to approve the application until sufficient detail has been provided or any points of confusion have been resolved. They may ask, for example, for confirmation that an individual whose personal details are being protected is still alive, or for assurances that it really is the case that the release of information concerning developments in weapons technology in the 1960s would still have a detrimental impact on national defence in 2015. They are also keen to make sure that departments are not wishing to keep information closed simply to avoid embarrassment rather than for any objective reason reached after an impartial review of the records. Where a department wishes to retain records, the Council will often challenge the length of the requested retention period and ask the department to explain why, for example, it cannot put in place plans to address any backlog as quickly 

•	FOI panels Panels of three Council members are convened to In most cases the closed information is either: 
as possible and it will ask to have sight of these plans before agreeing that the records can be retained. In many cases, the Council will ask a department to submit a revised application which addresses the queries that it has raised. However, where it has more serious concerns about the nature of a particular application or in cases which raise new or unfamiliar issues, it can and will ask departmental representatives to attend a Council meeting to discuss the matter in more detail. Where it has asked a department to present a timetable for transfer before agreeing retention, it will request regular updates on progress.

	 During 2014-15, 25 panels were convened, with 
The Council was pleased to note that the quality of the applications it receives has continued to improve. Departments have generally acted quickly in response to queries from the Council on their applications and ensured that any feedback is reflected in subsequent submissions. The National Archives has also played an important part in making sure that departments are informed of the Council's requirements and in providing quality assurance before applications are seen by members. These improvements have resulted in the Council needing to query fewer cases, as departments have responded positively to the searching scrutiny of the Council's queries. 

Nonetheless, the Council continues to identify and challenge issues where they arise, such as the incorrect use of exemptions and what it considers to be unnecessarily long closure or retention periods.

consider the public interest in the release of closed information held in The National Archives, when this is requested as part of a FOIA request. information that if released would endanger the safety or physical or mental health of any individual; information that would damage international relations; or information relating to law enforcement. Cases are carefully scrutinised and debated by panels. If they consider it necessary, a panel will request further detail or clarification from the relevant department or The National Archives. Even where they are in agreement with exemptions being applied, they may also raise general concerns or issues they have about departmental practices and draw attention to inconsistencies between departments. 250 cases being considered in total. In many cases, having been provided with more detail, the panels accepted departments' arguments for closure. In some instances - around 1% of the cases considered 
- the panels concluded that the public interest lay in disclosure and therefore the documents were made available at The National Archives. The panels' conclusions are presented and discussed at the subsequent meeting of the full Council.
Engagement with departments As is its usual practice, the Council has invited government departments to its meetings to discuss their applications for closure or retention, or to provide updates on how their records management processes are operating. During the past year, representatives from the Cabinet Office, the Crown Prosecution Service, Ministry of Defence, HM Treasury and the Foreign and Commonwealth Office (FCO) have attended. As well as giving members an opportunity to examine thoroughly the reasons behind a department's application, these face-to-face meetings have enabled the Council to discuss areas of concern and to propose ways in which departments could address these. Most departments have embraced this interaction. They have been open about the problems they are working to address and potential obstacles to achieving their objectives, and have been receptive to the Council's feedback. Unfortunately, members noted that this level of engagement is not universal and they were particularly concerned about the approach adopted by the Cabinet Office in its dealings with them. The initial lack of willingness from the department to engage with the Council resulted in what could have been an avoidable delay in resolving issues related to the proposed retention of records. However, the Council is now confident that senior management within the department has a better appreciation of the concerns raised by members and looks forward to a more productive relationship in future.       
The Council has continued to pay attention to developments within the FCO. The FCO's Departmental Records Officer, its Head of Archives, and Professor Tony Badger, who led the independent review of its migrated archives and special collections, attended the Council's May 2014 meeting to present its plans for annual transfers and special collections, including its proposals for the prioritisation of records and their timetable for the release of those categorised as high priority. At the request of the Council, they presented a further paper in February 2015, providing a more detailed outline of their plans regarding the medium- and low-priority records. This provided the Council with the reassurance it sought that the department would not neglect its lower priority records and that there would be less risk of it needing to seek to retain them for any longer than set out in the current timetable. The FCO has also kept the Council informed of other developments concerning the handling of its other files series. Following a retention application submitted in November 2014 regarding around 170,000 legacy files identified during a recent file audit, Council members expressed some concern about the possibility that the FCO will continue to discover other legacy files. However, they recognised that the FCO was acting in good faith, keeping the Council updated on progress and seeking permission to retain records as soon as it became clear they needed to do so. The Council sees its dealings with the FCO as the type of constructive relationship which it would like to develop with other departments.  

	 The Council welcomed Sir Alex's final report, which 
Improving communications with stakeholders Over recent years the Council has observed a growing public and media interest in the management of public records and the process by which departments are allowed to retain records or request that they remain closed. It recognises that, as an independent body, it has a key role in helping to maintain trust in the system, and that an important part of this is being as open and transparent as it can be about its own activities. While the details of the Council's consideration of closure and retention applications are, by their very nature, sensitive, the published summaries of Council have been expanded as much as possible to give as full a picture as possible of the range of issues that are discussed.

•	The 20-year rule The Council has continued to receive annual updates 
In November 2014, a working group of five members was set up to examine ways in which the Council could ensure that its work is better understood. Work has begun on a refresh of its webpages which will include a clear statement in Plain English of the Council's role and the principles under which it operates.          
Meetings have also included discussions on:

•	Employment tribunal records •	The launch of the UK Government's social

In addition the Council has continued to look for opportunities to engage directly with those interested in its work. In May 2014 the FCO hosted its second FCO Records Day for academics, which focused on the FCO's plans for the release of its special collections. Dr Jeevan Deol attended on behalf of the Council and spoke to participants about the Council's work and its role within the UK public records system. 

•	Records relating to attempts to locate the next

## Part Three - Wider Issues

•	The strategic vision for The National Archives 
•	Sir Alex Allan's records review As part of his review on records management across 
•	The digitisation of the 1939 National

government, Sir Alex Allan met the Master of the Rolls, Professor Michael Moss, Professor Arthur Lucas and Sir David Durie to discuss the Council's role and its views and observations.   
•	The National Archives Fees Order.
it believes will be valuable in focussing attention on an area of business that risks being overlooked when setting departmental priorities. Of particular note, given the Council's continuing involvement with the FCO, was his suggestion that the FCO consider whether the sensitivity review of the special collections material might be carried out in a simplified, less intensive way, and whether it may be possible to accept greater risks in releasing the material given its age. The Council will also observe with interest the operation of the Cabinet Office Challenge Panel and any subsequent roll-out of similar panels in other government departments. on government departments' compliance with the transition from the 30- to the 20-year rule, and staff from The National Archives attended the Council's February 2015 meeting to give a presentation on the recently published Record Transfer Report (an overview of the bi-monthly reports produced by departments which The National Archives to monitor progress). The Council welcomed the greater transparency that the Record Transfer Report has encouraged since its introduction in 2012.  

media archive of kin of Polish killed in World War II and to return personal effects to them Leadership of the Archives Sector Health Register

## Part Four - The Forum On Historical Manuscripts And Academic Research

The Forum on Historical Manuscripts and Academic Research (the Forum) was established in May 2010. The Forum in its capacity as a subcommittee of the Advisory Council provides a means through which the Historical Manuscripts Commissioner can seek advice about activity relating specifically to historical manuscripts (private archives), as well as a place for discussion about academic research issues. It is chaired by the Master of the Rolls. Its membership has expertise in academic research and/ or knowledge and experience of private archives, and includes four members of the Advisory Council. During the period covered by this report Dr Clive Field and Professor Michael Moss came to the end of their terms on the Advisory Council and Forum. At its meeting in November 2014, the Advisory Council agreed that Ms Hillary Bauer and Ms Lesley Ferguson should be appointed to the Forum in their place, joining existing members Dr Bendor Grosvenor and Dr Elizabeth Lomas. There are three other members of the Forum who were appointed for a second three-year term with effect from 1 July 2014:

•	Dr Clive Cheesman, Richmond Herald at

The College of Arms
•	Dr Ian Mortimer, historian and historical biographer, 
qualified archivist and Fellow of the Royal Historical Society
•	Dr Christopher Ridgway, Curator at Castle Howard 
and Adjunct Professor in the History Department of the National University of Ireland The Forum met twice during the year over the last year on 13 June 2014 and 31 January 2015. During these meetings the Forum considered the following issues:

•	The National Archives' Independent Archives Team's 
future priorities
•	Archives for the Future •	Acceptance in lieu of tax •	The EU General Data Protection Regulations •	Export Stops •	Proposals for an Index of Manuscripts of Daily Life •	Investigation of Charity and Scientific

& Technical Archives 
•	Guidance on De-accessioning and Disposal •	The 20-year Rule •	The National Archives Future Direction & Strategy, 
and Realignment 
•	Proposals for an exhibition to celebrate the 
150th anniversary of the Historical Manuscripts Commission 
•	Copyright and Publication Rights •	Improvements to Discovery, The National Archives 
online catalogue.
An area of particular concern for the Forum this year was the apparent weaknesses of operation of the export stop process, which were highlighted by the sale of General Wolfe's papers to the University of Toronto. Dr Grosvenor and Dr Field subsequently met with the Reviewing Committee on the Export of Works of Art and Objects of Cultural Interest to discuss the issues raised by the sale. At that meeting it was agreed that communications relating to the possible sale of such papers in future should be improved and widened. Arts Council press releases, for example, should be clearer to avoid urgent issues being overshadowed by more high profile cases. 

## The Rt Hon Lord Dyson The Master Of The Rolls June 2015 Annex C Annual Report Of The Independent Complaint Reviewer 2014-15

Jodi Berg OBE is the Independent Complaints Reviewer (ICR) for The National Archives. She has a background as a solicitor and a mediator and acts as the ICR for other public bodies. She is Chair of the Administrative Justice Forum. The ICR service is free to people unhappy with the answers they have received to their complaints from The National Archives. The ICR office responds to all enquiries in an efficient and courteous way. 

## Introduction By Jodi Berg Obe

I am pleased to present my annual report. My role is to deal with complaints escalated to independent review when people are unhappy with the response given by The National Archives itself, and to monitor the operation of its internal complaint process. Although most people are pleased with the service received from The National Archives, when complaints arise they need to be dealt with in an open and transparent way with the intention of giving a fair response to the complainant and, where necessary, learning from problems that have occurred. If The National Archives cannot settle the complaint itself, it is essential that people have somewhere to turn that is independent and impartial. The ICR office takes pride in the quality of the service we provide to those people who need our help. ICR review will consider what people can reasonably expect from The National Archives and whether standards were met in their case. If we uphold a complaint, we can recommend redress for the complainant, such as an apology, or improvements to The National Archives' service. Complainants who are not happy with an ICR decision have the right to refer their concerns to the Parliamentary and Health Service Ombudsman. More information about the Ombudsman can be found at: www.ombudsman.org.uk 

## Icr Process

Following complaint referral, I ascertain what the complaint is about by looking at the information sent to me and by contacting the complainant by telephone. I try to settle matters by agreement between The National Archives and its customer wherever possible. Where it is not, I carry out a thorough review of the issues and consider whether The National Archives has met reasonable standards of customer service. The National Archives is committed to responding positively to my recommendations for personal redress or systemic improvement unless there is good reason why it cannot do so. My experience is that The National Archives is keen to learn from complaints and improve service where it can. Again this year I am pleased to record that the ICR Office was successful in retaining the BSI award for the quality of our Complaint Management System. 

## Overview Of Complaint Activity And Examples

Between 1 April 2014 and 31 March 2015, The National Archives recorded 94 complaints, a small increase from 85 last year. Most of these were resolved without the complainant needing to escalate their concerns to Internal Review by the Chief Executive's Office. Only two of these complaints resulted in referral to the ICR Office. The National Archives also recorded 235 compliments, which is confirmation that people appreciate the service they receive and is a marked increase on the 188 compliments recorded last year. This data has to be set in context against The National Archives' public contact, and this year The National Archives dealt with over 44,000 telephone enquiries, over 34,000 written enquiries, and it supplied over 647,000 documents to customers, mainly directly to the public. In the overall scheme of this extensive customer contact, complaints are very few in number and referrals to the ICR are rare. 

As always, this year we have had several requests for help from people who have not yet been through The National Archives' internal complaints procedure. These customers have been referred on to The National Archives. Where we can, we offer general advice or assistance that they have been unable to obtain through initial contact with The National Archives. This year we responded to 13 people who were looking for help and information about a variety of issues: 

•	Obtaining information from The National Archives 
about slave trade records 
•	Difficulties in obtaining documents held at The 
National Archives relating to a First World War hero 
•	Difficulties in setting up an account online with

The National Archives.
Case study: Mr A, an expert in his area of interest, referred his complaint to me that The National Archives would not alter its online information as he thought appropriate, or agree to hold a review hearing about this in which he would have equal status with The National Archives. I explained that my review would consider matters from the viewpoint of seeing whether The National Archives employed its usual practice and procedures to a reasonable standard in its dealings with him. I noted that whilst he had put his views to The National Archives, and that The National Archives had made some changes as a result, a service user does not have equal say with the management of a public body about the way the service is delivered. I noted that The National Archives had addressed his complaint appropriately and there was no more that ICR review could achieve. Accordingly, I did not carry out a review on this occasion. Complaints are generally a result of frustration and disappointment with a received service, however they can also reflect the genuine distress suffered by someone who does not achieve the outcome they want from their contact with an organisation. 

Where complaints referred to me do not lie within my remit, or where I conclude from the referral that ICR review will not help people to resolve matters or obtain an outcome the complainant would find useful, or where I conclude that The National Archives has done all it can to resolve matters, I can decide not to carry out a review on grounds of proportionality.

Case study: Mr B complained to me about unfairness of process after he had unsuccessfully sought reclosure of records which contained sensitive information. Whilst I was unable to address decisions taken by The National Archives under statutory authority, I was able to look at the process by which the decision was taken. I carried out a thorough review but found no evidence of maladministration and so did not uphold the complaint. I noted that The National Archives had identified 'learning points' from what had happened and that in this way Mr B's complaint had made a positive and constructive difference to The National Archives' processes, which would help others in the future. Following ICR review people can opt to refer their complaint to the Parliamentary and Health Service Ombudsman should they remain dissatisfied with the outcome.

Case study: Mr C complained to me in 2013 that The National Archives had failed to provide certain information to him despite his paying the fee for a search of the records. I carried out a review which resulted in the substantive complaint not being upheld, but I made recommendations for limited personal redress and for an improvement to complaint processes, both of which were accepted by The National Archives. Mr C remained dissatisfied and in 2014 he referred his complaint to the Parliamentary and Health Service Ombudsman. The Ombudsman's report stated: 'We have found the ICR's investigation of 'Mr C's' complaint to have been thorough and her findings evidence-based and reasonable.' 'I thank you for past concerns, sensitivities and personal support.' - Complainant I record my thanks to The National Archives' Public Services Development Team for their assistance with referrals and ICR review. 

## Contact The Icr

Details of the ICR service are explained in our leaflet Seeking a Fair Resolution available from our website at www.icrev.org.uk or from The National Archives. E-mail: enquiries@icr.gsi.gov.uk  
Telephone:  020 7930 0749