## Annual Report And Accounts Annual Report And Accounts 2013 - 14

(for year ended 31 March 2014)
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 Annual Report presented to Parliament pursuant to Section 1(15) and Paragraph 3 of Schedule 1 to the Criminal Justice Act 1987
Ordered by the House of Commons to be printed on 30 June 2014
This is part of a series of departmental publications which, along with the Main Estimates 
2014-15, the document Public Expenditure: Statistical Analyses 2014, present the Government's outturn for 2013-14 and planned expenditure for 2014-15.

© Crown Copyright 2014
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.2. To view this licence visit www.nationalarchives.gov.uk/doc/open-government-licence/version/2/  or email PSI@
nationalarchives.gsi.gov.uk Where third party material has been identified, permission from the respective copyright holder must be sought.

This publication is available at www.gov.uk/government/publications.

Any enquiries regarding this publication should be sent to us at SFO 2-4 Cockspur Street, SW1Y 5BS.

You can download this publication from our website at www.sfo.gov.uk Print ISBN 9781474104975
Web ISBN 9781474104982
Printed in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty's Stationery Office.

ID 21051401 06/14 
Printed on paper containing 75% recycled fibre content minimum.

 

| CONTENTS                                   	                                                               |   Page |
|---------------------------------------------------------------|--------|
| Director's Foreword                                           |      1 |
| Strategic Report                                              |      2 |
| Departmental Report Core Tables                               |      5 |
| Management Commentary                                         |      8 |
| Remuneration Report                                           |     11 |
| Statement of Accounting Officer's Responsibilities            |     20 |
| Governance Statement                                          |     21 |
| Certificate and Report of the Comptroller and Auditor General |     31 |

## The Accounting Schedules:

| a)	 Statement of Parliamentary Supply	                       | 33                             |
|-----------------------|--------------------------------|
| b)	 Statement of Comprehensive Net Expenditure                       | 39                             |
| c)	 Statement of Financial Position                       | 40                             |
| d)	 Statement of Cash Flows                       | 41                             |
| e)	 Statement of Changes in Taxpayers' Equity                       | 42                             |
| f)                    | Notes to Departmental Accounts |
| Annex A               |                                |
| Sustainability Report | 60                             |

## Director'S Foreword I Present The Annual Report For The Serious Fraud Office For The Year 2013-14.

Since I took up post in April 2012, we have sharpened the strategic focus of the SFO on the casework for which the Roskill model was designed and intended. This is the topmost tier of serious and complex fraud and bribery. Consequently:

(i)	 We are undertaking fewer but much larger and more complex investigations. 
Examples include LIBOR, Rolls-Royce, Barclays/Qatar, ENRC, Alstom, G4S Serco.
(ii)	 We have expanded our analytical and intelligence capability, and currently 
have significant pre-investigation projects in development.
(iii)	At the other end of the pipeline, we had 11 cases involving 
34 defendants charged and awaiting trial as at 31 March 2014.
In the reporting year 2013-14 we have had 8 prosecutions of 18 defendants either concluded or in progress. The conviction rate by defendant was 85%. All of our cases are high profile and therefore high risk. With our recalibrated caseload, expanded intelligence capability, the building of cooperation with partners and stakeholders foreign and domestic, blockbuster funding for exceptionally large cases and the recruitment and retention of high quality staff, I am confident that we have in place the building blocks necessary for the success of the SFO.

DAVID GREEN CB QC Director Serious Fraud Office
23 June 2014

## Strategic Report Basis Of Accounts

This document contains the annual report and accounts of the Serious Fraud Office (SFO) for the year 1 April 2013 to 31 March 2014. These have been prepared in accordance with the guidance set out in HM Treasury's Government Financial Reporting Manual (FReM) for 2013-14. There is more information about the SFO on its website:- www.sfo.gov.uk

## Going Concern Basis

In common with other government departments, the future financing of the SFO's liabilities is met by future grants of supply and the application of future income, both to be approved by Parliament each year. The amounts required for 2013-14 have already been approved and there is no reason to believe that future approvals will not be forthcoming.  It was therefore appropriate to prepare these financial statements on a going concern basis.

## Role Of The Department

The SFO is an independent government department responsible for investigating and, where appropriate, prosecuting cases of serious or complex fraud, bribery and corruption. The department forms part of the criminal justice system with jurisdiction in England, Wales and Northern Ireland. It is headed by the Director, David Green CB QC, who acts under the superintendence of the Attorney General. The SFO was established in 1988 and given its powers under the Criminal Justice Act (1987) following the 1986 'Roskill Report' (the report of the Fraud Trials Committee). The report recommended that, as these kinds of cases are very complex, multi-disciplinary teams of lawyers and investigators are needed to work together from the beginning to secure more effective outcomes.  
We take on a small number of large cases and these will include cases

- 
Which undermine UK commercial/financial  in  
	
general and the City of London in particular.
- 
Where the actual or potential sums  
	
involved are high.
- 
Where actual or potential harm is significant.
- 
Where there is a very significant public  
	
interest element.
- 
That represent new species of fraud.
We also assist overseas jurisdictions with their investigations into serious or complex fraud, bribery and corruption.

## Operational Structure

The SFO has eight operational divisions. Two divisions deal with fraud and two with bribery and corruption. In addition, there are divisions that cover special projects, proceeds of crime, intelligence and international assistance which services incoming letters of request from foreign jurisdictions asking for investigative assistance. Each division is headed by a member of the Senior Civil Service. The Director takes decisions about which matters should be accepted for formal investigation. Once a matter is accepted for investigation, a case team is assembled, headed by a case controller who is responsible for the day-to-day management of the case and reports to the relevant Head of Division. Case teams are multi-disciplinary with members allocated according to the skills and expertise the case requires. They are flexible over the life cycle of the particular case.

## Strategic Report Governance Performance Indicators In 2013-14

The tables below provide a summary of case statistics in 2013-14.

Information on the SFO's governance and risk management arrangements, and the key challenges the SFO faced in the year, are set out in the Governance Statement to this report and accounts (pages 21 to 30).

## Financial Position

Information on the SFO's financial position is set out in the Management Commentary to this report and accounts (pages 8 to 10). The Serious Fraud Office investigates the most serious and complex cases of fraud, bribery and corruption as described above. The quantity of such work is unpredictable. The SFO has a core budget for this purpose but some exceptionally large cases may require additional resources. The Government has previously made clear that where the SFO needs additional resources, these will be provided. The current agreement with HM Treasury is that any exceptional case funding should be agreed as part of the Supplementary Estimates process.

## Long Term Liabilities And Principal Risks

Finally, default prison sentences were imposed on 4 defendants who had failed to satisfy confiscation orders imposed by the Courts in relation to the SFO's proceeds of crime work.

## Transparency

Due to the nature of the SFO's casework, provisions have been made for instances of high value litigation brought against it. The Tchenguiz brothers' civil litigation has been widely reported These proceedings are extant, and it would be inappropriate to disclose further information at this stage beyond that contained on page 58. Other principal risks are documented in the Governance Statement (pages 21 to 30). 

The SFO publishes transparency data in line with 
Cabinet Office guidance (found here: www. cabinetoffice.gov.uk/resource-library/guidancetransparency  Our data is on our website, www.sfo.gov.uk, or, where required, at www.data.gov.uk. 
Details of all new contracts and tender documents for contracts over £10k are published on the Business Link "Contracts Finder" website 
www.gov.uk/contracts-finder.
Cases in progress during the year
New investigations opened
12
Investigations concluded without charge
3
Defendants charged
35
Number of prosecutions concluded or in progress (by defendant)
18
Number of prosecutions concluded or in progress (by case)
8
Trials
Trials in progress during the year (by defendant)
14
Trials in progress during the year (by case)
5
Trials concluded by defendant
9
Trials concluded by case
3
Trials reaching jury consideration by case
2
Defendants awaiting trial start at year end
34
Convictions
Total defendants convicted
11
Defendants convicted by plea
4
Defendants convicted by jury
7
Conviction rate percentage
85

## Strategic Report Company Directorships

Every member of the Senior Civil Service working at the SFO is on its Management Board.  None holds any company directorships or significant interests which might conflict with their senior management responsibilities.

## 

NUMBER OF EMPLOYEES BY GENDER
(headcount at 31 March 2014, including fixed term contractors but not temporary agency workers)
All staff excluding members of the Management Board
174
126
169
120
SCS
9
4
8
4

## Consultation With Employees

The SFO has a formal consultation framework with the Trade Unions - the First Division Association (FDA), Prospect and the Public and Commercial Services (PCS).  Monthly People Committee meetings are scheduled and chaired by the Head of Human Resources. The Trade Unions also meet quarterly with the Director. The SFO participates in the Civil Service People survey (see below) and consults staff on an ad hoc basis less formally if issues arise.

## Equality And Diversity

The SFO is committed to equality and diversity, recognising differences between people and positively valuing the different perspectives and skills of our people. The SFO is committed to ensuring we provide an environment where everyone is treated with dignity and respect.  The SFO has an action plan in place to ensure it meets its obligations under the Public Sector Equality Duty. The SFO's Dignity at Work policy emphasises the importance of treating everyone with dignity and respect, irrespective of any of the protected characteristics. Our policy offers guidance on what to do if unacceptable behaviour occurs. 

## Social And Community Issues

The SFO has a Charities and Community Engagement Committee which encourages staff to participate in volunteering activities.  Staff are encouraged to volunteer and are entitled to claim one day's special leave per annum.

|      |        | 2013-14   | 2012-13   |
|------|--------|-----------|-----------|
| Male | Female | Male      | Female    |

## Sickness

Average working days lost due to sickness (per employee) was 5.1 (2012-13: 7.0 days).

## People Survey

The SFO participated in the Civil Service People Survey in 2013. The SFO had an engagement score of 59 per cent (up from 53 per cent in 2012) 
with encouraging trends in many areas. More information is available on our website www.sfo. gov.uk. 

## Sustainability

The SFO is committed to government policy to improve sustainability and is working towards meeting the Greening Government Commitment (GGC) targets which started on 1 April 2011 with a baseline period of 2009-10. We are now ahead of all our targets. This is principally due to a move from our old premises on two sites to a single building on Cockspur Street. More information is on pages 60 to 64.

## David Green Cb Qc Accounting Officer 23 June 2014 Departmental Report Core Tables

The tables below set out the key data for the Serious Fraud Office as required by the Public Expenditure System Paper PES (2011) 10.  

Table 1 Public Spending by expenditure limit category
£000s
2009-10 
Outturn
2010-11 
Outturn
2011-12 
Outturn
2012-13 
Outturn
2013-14 
Outturn
2014-15 
Plans
2015-16 
Plans
Resource DEL
Section A: Investigations and 
Prosecution
39,616
35,513
31,579
38,050
51,715
35,224
34,172
Total Resource DEL
39,616
35,513
31,579
38,050
51,715
35,224
34,172
of which: Pay
19,948
19,941
18,820
19,495
21,035
17,834
14,457
Procurement
20,306
17,846
17,187
19,360
29,139
15,728
18,053
Depreciation*
2,709
2,137
2,531
2,083
1,631
2,062
2,062
Vote income
(3,347)
(4,411)
(6,959)
(2,889)
(426)
(400)
(400)
Resource AME
517
-
(184)
(22)
(336)
2,000
2,000
Total Resource Budget
40,133
35,513
31,579
38,050
51,379
37,224
36,172
of which: Depreciation
2,709
2,137
2,351
2,083
1,631
2,062
2,062
Capital DEL
Section A: Investigations and Prosecution 
2,979
2,745
709
1,107
1,295
1,820
1,365
Total Capital Budget**
2,979
2,745
709
1,107
1,295
1,820
1,365
Total departmental spending***
40,403
36,121
29,937
37,074
51,043
36,982
35,475
of which: Total DEL
39,886
36,121
30,121
37,096
51,379
34,982
33,475
Total AME****
517
-
(184)
      (22)
(336)
2,000
2,000

* Includes impairments ** Expenditure on tangible and intangible fixed assets net of sales *** 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 the resource budget AME and capital budget AME less depreciation in AME. **** AME - Annually Managed Expenditure - where expenditure is generally less predictable and controllable than expenditure in DEL

## Departmental Report Core Tables

£000s
2009-10 
Outturn
2010-11 
Outturn
2011-12 
Outturn
2012-13 
Outturn
2013-14 
Outturn
2014-15 
Plans
2015-16 
Plans
Assets and liabilities on the statement of financial position at end of year: Assets
Non-current assets
6,859
7,335
5,569
4,591
4,282
5,296
5,296
Intangible
2,548
4,066
3,123
2,369
1,789
3,676
3,676
Property, Plant and Equipment
4,300
3,259
2,437
2,214
2,458
1,620
1,620
of which: Improvements to leasehold property
2,015
1,065
457
836
1,352
500
500
Information technology
1,895
1,937
1,866
1,362
1,106
1,000
1,000
Furniture and fittings
390
257
114
-
-
120
120
Motor vehicles
-
-
-
-
-
-
-
Assets under Construction
-
-
-
16
-
-
-
Current assets
2,252
2,556
3,026
2,925
1,819
2,200
2,200
Liabilities
Current (<1 year)
(4,763)
(4,873)
(4,674)
(5,372)
(4,218)
(3,000)
(3,000)
Non-current (>1 year)
(298)
(126)
-
-
(-)
(298)
(298)
Provisions
(2,279)
(1,467)
(1,283)
(1,262)
(926)
(200)
(200)
Capital employed within main department*
1,771
3,425
2,638
882
957
3,998
3,998
Agency assets*
(173)
(18)
-
-
-
-
-
Total capital employed *
1,598
3,407
2,638
882
957
3,998
3,998

* Before 2011-12, the assets of the National Fraud Authority (NFA) were accounted for here. They have since been accounted for by the Home Office following a Machinery of Government change effective 1 April 2011.

## Table 3 - Public Spending Control

The level of expenditure incurred by Government Departments, including the Serious Fraud Office, is subject to statutory limits approved by Parliament. It is a fundamental form of accountability that expenditure within a financial year does not exceed these limits. There are four key financial targets which the Serious Fraud Office must achieve. Our performance for 2013-14 against these targets is set out in the table below: 

£000s
Revenue DEL
Revenue AME
Capital DEL
Net Cash 
Requirement
Expenditure limits set at start of year and subsequent adjustments
Main Estimate
34,607
2,000
1,440
35,553
Supplementary Estimate
19,000
-
-
19,000
Final limit
53,607
2,000
1,440
54,553
Expenditure incurred
51,715
(336)
1,295
51,394
Performance within limits
Yes
Yes
Yes
Yes

## Table 4 - Administration Budget

£000s
2009-10 
Outturn
2010-11 
Outturn
2011-12 
Outturn
2012-13 
Outturn
2013-14 
Outturn
2014-15 
Plans
2015-16 
Plans
Section A: Investigations and prosecution
-
-
7,546
7,019
7,281
7,351
7,351
Total administration budget*
-
-
7,546
7,019
7,281
7,351
7,351
of which: Paybill
-
-
4,514
4,413
4,356
2,460
2,460
Expenditure
-
-
3,032
2,606
2,925
4,891
4,891
Income
-
-
-
-
-
-
-

## Table 5 - Full Time Equivalent Staff In Post

| 2010-11 Actual                        |   2011-12 Actual |   2012-13 Actual |   2013-14 Actual |
|---------------------------------------|------------------|------------------|------------------|
| Civil service (full time equivalents) |                  |                  |                  |
| 295                                   |              279 |              278 |              294 |
| Fixed Term Appointments               |                  |                  |                  |
| 10                                    |               27 |               14 |               11 |
| Total**                               |                  |                  |                  |
| 305                                   |              306 |              292 |              305 |

* From 1 April 2008 to 31 March 2011 all operating costs for the SFO were classified as programme. The Spending Review for 2010 which covers 2011-12 to 2014-15 financial years has reinstated the requirement for the reporting of expenditure split between programme and administration. ** The numbers in this table reflect staff numbers at 31 March 2014, including those on fixed term contracts but excluding temporary agency workers. The numbers in this table are not directly comparable with those in note 2(b) which shows average staff numbers for the year, or those on page 4 which show headcount.

## Management Commentary

The Department's net assets of £957k at 31 March 2014 compare to net assets of £882k as at 31 March 2013. This small increase in net assets follows an increase in the non-current assets and a reduction in both the current assets and current liabilities. The increase in non-current assets is 

RECONCILIATION OF RESOURCE EXPENDITURE BETWEEN ESTIMATE, ACCOUNTS AND BUDGET
Net Resource Outturn (Estimate)
55,607
47,533
Unused Resources
(4,228)
(9,505)
Income payable to the Consolidated Fund
-
-
Net Operating Cost (Accounts)
51,379
38,028
Of which:
 - Departmental Expenditure Limit (DEL)
51,715
38,050
 - Annually Managed Expenditure (AME)
(336)
(22)

## Net Resource Outturn And Net Operating Cost

The resources available to the SFO are determined by Parliament through the Supply Estimates procedure. The increase in both the Net Resource Outturn and Net Operating Cost over the previous year represents an increase in expenditure to support blockbuster cases and on-going litigation. As shown in the Statement of Parliamentary Supply on page 33, there has been an overall underspend of £1,892k against the DEL Estimate and an overall underspend of £2,336k against the AME Estimate.  There has been an overall underspend of £4,228k against the Estimate. £1,892k of this mainly due to the acquisition of new IT hardware. The reduction in our current assets is mainly due to a reduction in cash and cash equivalents. The reduction in cash also caused the current liabilities to decrease following a reduction in the amount issued from the Consolidated Fund. 

£000s
2013-14
2012-13

was within DEL, where savings against the estimate were achieved by identifying synergies between two cases as they progressed, and by a change in the way personnel were deployed on one of the cases. A further case did not progress as quickly as expected. The underspend within AME is caused by a lower than expected provisions requirement. AME is very unpredictable and therefore difficult to estimate. Income from civil recovery settlements and cost awards was £426k in 2013-14, and £2,889k in 2012-13. The increase in the net operating costs from £38,050k in 2012-13 to £51,715k in 2013- 14 is due to the costs associated with the defence of a civil litigation claim, the investigation of three blockbuster cases and the payment of backdated VAT in respect of the counsel fees.

## Management Commentary Payment Of Vat On Contracted-Out Services

which may affect these operations before they occur. The SFO continues to seek value for money on all procurement and contracts. Because the SFO is a small organisation, this is best done by using the Crown Commercial Services frameworks as much as possible and continuing partnerships with other public sector organisations that have dedicated resources working in these areas. 

Included in the Statement of Parliamentary Supply Outturn on page 33 is information about the revised treatment of VAT on certain contracted-out services. This includes the repayment of £3,837k in tax, of which £564k was a penalty and £104k was interest. A further £798k was accrued in 2012-13 making the total liability £4,635k. 

## Pensions And Early Departure Costs

Details about the SFO's pensions and early departure policies are included in the notes to these accounts and can be found on page 45.  

## Paying Suppliers

The VAT repayment has been accounted for as expenditure under the categories of spend to which it relates. That is: £1,884k counsel fees, included in Note 4 Programme costs; £580k included in Note 2a under other staff costs; £688k included in Note 4 Programme costs under civil litigation; £17k included in Note 4 Programme costs under IT costs; and £668k VAT penalty and interest shown in Note 3 Other Administration costs. Further details can be found under the Governance Statement on page 28.

We are committed to paying bills in accordance with agreed contractual conditions, or, where no such conditions exist, within 30 days of receipt of goods or services or the presentation of a valid invoice, whichever is the later. The SFO paid 92% (2012-13 87%) of supplier invoices to time

## Net Cash Requirement

During the year the SFO paid 38% (2012-13 37%) of all undisputed invoices within 10 days of receipt in line with the commitment to pay all suppliers promptly. This commitment is a target rather than a change to standard terms and conditions and is not contractual. 

The net cash requirement of £51,394k for 2013-14 is £3,159k less than the estimated requirement for the year and reflects the operating expenditure of the SFO, which was lower than originally anticipated due to lower than budgeted costs across a number of areas. 

## Data Handling Financial Instruments

Details about the SFO's policies on financial instruments are included in the notes to these accounts. Most financial instruments are for contracts to buy non-financial items in line with the expected purchase and usage requirements and the department is therefore not exposed to significant credit, liquidity or market risk. 

The SFO suffered a data loss in 2012. A full investigation was instigated and over 98% of the material was recovered. The incident was reported to the Cabinet Office and the Information Commissioner's Office (ICO) as personal data had been inadvertently sent to a third party. In these circumstances the ICO undertakes an inspection and a site visit took place at the end of May 2014. Further details can be found in the Governance statement on page 27.

## Investment In The Future

There were a further 10 instances of non-reportable incidents.

All current and capital expenditure support core operational functionality and are planned, as far as possible, to take account of changing circumstances 

## Management Commentary Auditors

The Comptroller and Auditor General is the statutory auditor for the SFO's accounts. The Department's audit fee for 2013-14 is £60,000 (2012-13; £64,500). So far as I am aware, there is no relevant audit information of which the SFO's auditors are unaware, and I have taken all the steps that ought to have been taken to make myself aware of any relevant audit information and to establish that the SFO's auditors are aware of that information. No further assurance or other advisory services were provided by the auditors.

## David Green Cb Qc Accounting Officer 23 June 2014 Remuneration Report Ministers And Senior Officers At Risk Pay

The Attorney General (the Rt Hon. Dominic Grieve QC) superintended the work of the SFO during the period covered by these accounts. The information given below relates to the Director and senior managers of the SFO. Information relating to the Attorney General is given in the accounts of HM Procurator General and Treasury Solicitor. The remuneration of senior civil servants is set by the Prime Minister following independent advice from the Senior Salaries Review Body. In reaching its recommendations, the Review Body considers:

- 
The need to recruit, retain and motivate suitably 
 
	
able and qualified people to exercise their  
Performance management of staff below the SCS is covered by the SFO's performance appraisal system. The system supports all staff in improving their performance through continuous dialogue between managers and staff. It provides a framework for conversations about objective setting, how people have performed against their objectives, and what development needs they have. Annual performance assessment is based on the delivery of objectives, taking account of both the 'what' and the 'how'. A formal review of performance is conducted at least once a year.  Bonuses can be paid in-year to individuals to reward work on particularly demanding tasks or situations. Annual performance bonuses are based on performance appraisal markings. 

	
different responsibilities.
- 
Regional/local variations in labour markets and  
	
their effects on the recruitment and retention of 
 
	
staff.
- 
Government policies for improving public 
In 2013-14 the annual performance bonus accrual for grades below the SCS totalled £213,473 (2012-13: £190,000).

	
services including the requirement on  
	
departments to meet the output targets for the 

## Service Contracts

	
delivery of departmental services.
- 
The funds available to departments as set out in 
	
the Government's departmental expenditure 
	
limits; and
- 
The Government's inflation target.
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.

The Review Body takes account of the evidence it receives about wider economic considerations and the affordability of its recommendations. The Director's salary is linked to that of a High Court Judge.

## Remuneration Committee

Unless otherwise stated below, the officials covered by this report hold appointments which are open-ended.  Early termination, other than on the grounds of poor performance, conduct or attendance would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme. Further information about the work of the Civil Service Commission can be found at www.civilservicecommission.org.uk The remuneration of Senior Civil Service (SCS) is determined in accordance with the report of the Senior Salaries Review Body. The SFO's SCS Pay Committee meets annually to consider pay increases and bonus payments in accordance with these recommendations. The committee consists of the Director, the non-executive directors, and a senior HR professional from another Government Department.

The Director and Accounting Officer of the SFO is David Green CB QC. 

## Remuneration Report Senior Official Appointments Salary And Pension Entitlements

This information is subject to audit. The following sections provide details of the remuneration and pension interests of the SFO's senior management (SCS ) during the year David Green CB QC was appointed by the Attorney General on a renewable four-year contract that began on 21 April 2012. HH Geoffrey Rivlin QC was appointed to a 2 year fixed term appointment from 1 August 2012 and the SFO has permission to extend beyond 2 years from the Civil Service Commissioners.  

NON-EXECUTIVE BOARD MEMBERS REMUNERATION
£000s
Name and title
2013-14
2012-13
Alan Graham MBE **Non-Executive Director** 
(to 30 November 2013)
15-20
30-35 
Simon Duckworth DL
Non-Executive Director
5-10
10-15
John Anthony Osbaldiston **Non-Executive Director** 
(from 2 September 2013)
5-10
-
Norman Pickavance Non-Executive Director 
(from 2 September 2013)
10-15
-

The Non-Executive Directors have been appointed on a three year renewable contract with their remuneration determined by the number of days required for their duties at a rate per diem plus reimbursement of expenses. None of the current Non-Executive Directors is a member of the Civil Service Pension Scheme.

## Remuneration Report Senior Management

SINGLE TOTAL FIGURE OF REMUNERATION
Officials
Salary (£'000)
Bonus payments (£,000)
Benefits in kind (to nearest £100)
Pension benefits (£'000)1
Total (£,000)
2013-14
2012-13
2013-14
2012-13
2013-14
2012-13 
2013-14
2012-13
2013-14
2012-13
170-175
-
-
-
-
35,000
66,000
205-210
David Green CB QC 
Director
160-165 
(170-175 
full year 
equivalent)
5-10
-
-
-
62,000
69,000
180-185
Alun Milford 
General Counsel
110-115
65-70
(110-115 
full year 
equivalent
-
-
-
-
-
-
100-105 
(180-185 
full year 
equivalent: part 
time)
Restated 
(180-185 
full year 
equivalent: part 
time)
His Honour Geoffrey Rivlin QC
Advisor to Director
Kevin Davis2 
70-75
-
-
-
-
31,000
58,000
100-105
Chief Investigator
40-45 
(70-75 
full year 
equivalent)
80-85
5-10
-
-
-
20,000
5,000
110-115
Kristin 
Jones Head of Strategic Relations
40-45 
(80-85 
full year 
equivalent)
80-85
-
-
-
-
(8,000)
-
70-75
45-50 
(85-90 
full year 
equivalent)
Barny Todd 
Chief Financial Officer
20-25 
(80-85 
full year 
equivalent)
80-85
5-10
-
-
- 19,000	
9,000	
105-
110
Matthew Wagstaff 
Head of Division A
55-60
(80-85 
full year 
equivalent)
0-5
-
-
-
-
1,000 24,000	
0-5
30-35 
(80-85 
full year 
equivalent)
65-70 
(90-95 
full year 
equivalent)
Patrick Rappo
Head of Division B (to 
12.4.13)
225-230 
(235-240 
full year 
equivalent
135-140 
(180-185 
full year 
equivalent)
65-70 
(100-105 
full year 
equivalent: part 
time)
100-105 
(180-
185 full 
year 
equivalent: part 
time)
100-105 
(130-135 
full year 
equivalent)
20-25 
(80-85 
full year 
equivalent)
55-60 
(105-110 
full year 
equivalent)

## Remuneration Report

| Officials         | Salary (£'000)   | Bonus payments    |
|-------------------|------------------|-------------------|
| (£,000)           |                  |                   |
| Benefits in kind  |                  |                   |
| (to nearest £100) |                  |                   |
| Pension           |                  |                   |
| benefits (£'000)  |                  |                   |
| 1                 |                  |                   |
| Total             |                  |                   |
| (£,000)           |                  |                   |
| 2013-14           | 2012-13          | 2013-14           |
| -                 | -                | -                 |
| 105-              |                  |                   |
| 110               |                  |                   |
| Jane de           |                  |                   |
| Lozey             |                  |                   |
| Head of           |                  |                   |
| Division C        |                  |                   |
| 80-85             |                  |                   |
| 40-45             |                  |                   |
| (80-85            |                  |                   |
| full year         |                  |                   |
| equivalent)       |                  |                   |
| -                 | -                | -                 |
| Clare             |                  |                   |
| Whitaker          |                  |                   |
| Head of           |                  |                   |
| Division D        |                  |                   |
| 80-85             |                  |                   |
| 40-45             |                  |                   |
| (80-85            |                  |                   |
| full year         |                  |                   |
| equivalent)       |                  |                   |
| 80-85             |                  |                   |
| -                 | -                | -                 |
| 22,000            | 11,000           |                   |
| 100-              |                  |                   |
| 105               |                  |                   |
| 30-35             |                  |                   |
| (80-85            |                  |                   |
| full year         |                  |                   |
| equivalent)       |                  |                   |
| Mark              |                  |                   |
| Thompson          |                  |                   |
| Head of           |                  |                   |
| Proceeds of       |                  |                   |
| Crime             |                  |                   |
| 80-85             | 80-85            | -                 |
| Lesley            |                  |                   |
| Dugdale           |                  |                   |
| Head of           |                  |                   |
| Human             |                  |                   |
| Resources         |                  |                   |
| -                 | -                | -                 |
| 50-55             |                  |                   |
| (80-85            |                  |                   |
| full year         |                  |                   |
| equiva-           |                  |                   |
| lent)             |                  |                   |
| Stuart Alford     |                  |                   |
| QC                |                  |                   |
| Head of           |                  |                   |
| Special           |                  |                   |
| Projects          |                  |                   |
| (from 1.9.13)     |                  |                   |
| -                 |                  |                   |
| -                 | -                | -                 |
| 20,000            |                  |                   |
| -                 |                  |                   |
| Ben Morgan        |                  |                   |
| Head of           |                  |                   |
| Division          |                  |                   |
| B                 |                  |                   |
| (from             |                  |                   |
| 19.8.13)          |                  |                   |
| 50-55             |                  |                   |
| (80-85            |                  |                   |
| full year         |                  |                   |
| equiva-           |                  |                   |
| lent)             |                  |                   |
| -                 |                  |                   |
| -                 | -                | -                 |
| -                 | -                | -                 |
| Richard           |                  |                   |
| Alderman          |                  |                   |
| Director          |                  |                   |
| (to               |                  |                   |
| 20.4.12)          |                  |                   |
| -                 |                  |                   |
| 15-20             |                  |                   |
| (170 -175         |                  |                   |
| full year         |                  |                   |
| equivalent)       |                  |                   |
| -                 |                  |                   |
| -                 |                  |                   |
| 10-15             | 2,100            | -                 |
| 5-10              |                  |                   |
| (120-125          |                  |                   |
| full year         |                  |                   |
| equivalent)       |                  |                   |
| Phillippa         |                  |                   |
| Williamson        |                  |                   |
| Chief Execu-      |                  |                   |
| tive Officer      |                  |                   |
|                   |                  |                   |
| (to 16.4.12)      |                  |                   |
| -                 |                  |                   |
| -                 | 10-15            |                   |
| -                 | -                | -                 |
| 2,000             |                  |                   |
| -                 |                  |                   |
| 125-130           |                  |                   |
| (125-130          |                  |                   |
| full year         |                  |                   |
| equivalent)       |                  |                   |
| Christian         |                  |                   |
| Bailes            |                  |                   |
| Chief             |                  |                   |
| Operating         |                  |                   |
| Officer           |                  |                   |
| (to               |                  |                   |
| 31.12.12)         |                  |                   |

1The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual).  The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights.  2On loan from HMRC

65-70
(105-110 
full year 
equivalent)
60-65
(100-105 
full year 
equivalent)
40-45 
(90-95 
full year 
equivalent)
-
45-50
(75-80 
full year 
equivalent)
-
70-75
(100-
105 full 
year 
equivalent)
15-20
(170 
-175 
full year 
equivalent)
70-75
(185-190 
full year 
equivalent)
135-140
(135-140 
full year 
equivalent)

## Remuneration Report Salary

hotel costs for home to work travel and £905 enhanced taxation and NI contributions). 

## Bonuses

Salary includes gross salary; overtime; and any other allowance to the extent that it is subject to UK taxation. This report is based on accrued payments made by the Department and thus recorded in these accounts.

## Benefits In Kind

Bonuses are based on performance levels attained and are made as part of the appraisal process. Bonuses relate to the performance in the year prior to which they become payable to the individual.  The bonuses reported in 2013- 14 relate to performance in 2012-13 and the comparative bonuses reported for 2012-13 relate to performance in 2011-12.

The monetary value of benefits in kind covers any benefits provided by the employer and treated by HM Revenue and Customs as a taxable emolument. There were no benifits in kind during 2013-14 (2012-13 £1,204 for the payment of travel and 

## Details Of Amounts Payable To Third Party Entities In Respect Of Interim Senior Management Services

This information is subject to audit The Management Board engaged the services of the following interim senior manager:

Mathew Mallett (from 2 December 2013)
Chief Technology Officer
95-100
PAY MULTIPLES
2013-14
2012-13
Highest paid individual (£000)
180-185
Highest paid individual (£000)
180-185
Median Total (£)
34,700
Median Total (£)
34,356
Remuneration Ratio
5.26
Remuneration Ratio
5.31

The SFO is required to disclose the relationship between the salary of the most highly-paid individual in the organisation and the median earnings of the SFO's workforce. The salary of the most highly-paid individual in the SFO in the financial year 2013-14 was £180,000 - £185,000. This was 5.26 times the median salary of the workforce, which was £34,700. The ratio decreased slightly from 5.31 in 2012- 13 because of a marginal increase in the median pay for permanent staff and the appointment in 2012-13 of a number of fixed term staff above the median pay point whilst the salary of the highest paid individual has not changed. 

Position
Cost to the SFO £000

## Remuneration Report Off-Payroll Engagements (E.G. Contractors, Consultants) As At 31 March 2014, For More Than £220 Per Day And That Last For Longer Than Six Months

| Number of existing engagements as at 31 March 2014                             |   2 |
|--------------------------------------------------------------------------------|-----|
| Of which:                                                                      |     |
| Number that have existed for between one and two years at time of reporting    |   1 |
| 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 years or more at time of reporting           |   0 |
| Total                                                                          |   2 |

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

## New Off-Payroll Engagements Between 1 April 2013 And 31 March 2014, For More Than £220 Per Day And That Last For Longer Than Six Months

| Number of existing engagements as at 31 March 2014                                      |   1 |
|-----------------------------------------------------------------------------------------|-----|
| No. of new engagements which include contractual clauses giving department the right to |     |
| request assurance in relation to income tax and National Insurance obligations          |     |
| 1                                                                                       |     |
| No. for whom assurance has been requested                                               |   1 |
| Of which:                                                                               |     |
| No. for whom assurance has been received                                                |   1 |
| No. for whom assurance has been received                                                |     |
| 0                                                                                       |     |
| Number that have been terminated as a result of assurance not being received            |     |
| 0                                                                                       |     |
| Total                                                                                   |     |
| 1                                                                                       |     |

## Remuneration Report Pension Benefits

Name and title
Accrued 
pension at 
pension 
age as at 
31/3/14 
and related 
lump sum
Real increase in 
pension 
and related 
lump sum 
at pension 
age
£000
£000
£000
£000
£000
David Green CB QC **
Director
15-20
0-2.5
381
318
34
Alun Milford 
General Counsel
30-35 plus 
90-95 lump 
sum
His Honour Geoffrey Rivlin QC 
Advisor to Director
-
-
-
-
-
Kevin Davis 
Chief Investigating Officer
30-35 plus 
90-95 lump 
sum
Kristin Jones 
Head of Strategic Relations
35-40 plus 
lump sum 
55-60
Barny Todd 
Chief Financial Officer
25-30 plus 
85-90 lump 
sum
(0)-(2.5) plus
 (0)-(2.5) 
lump sum
Matthew Wagstaff 
Head of Division A
25-30 plus 
25-30 lump 
sum
Patrick Rappo **
Head of Division B (to 12 April 2013)
5-10
0-2.5
73
73
-
Jane de Lozey *
Head of Division C
10-15
0-2.5
162
137
11
Clare Whitaker 
Head of Division D
25-30 plus 
75-80 lump 
sum
Mark Thompson *
Head of Proceeds of Crime
0-5
0-2.5
57
37
11 
Lesley Dugdale 
Head of Human Resources 
20-25 plus 
65-70 lump 
sum
0-5
0-2.5
33
32
(4)
Stuart Alford QC **
Head of Special Projects 
(from 1 September 2013)
0-5
0-2.5
10
-
6
Ben Morgan  **
Head of Division B  
(from 19 August 2013)

* Member of Premium Scheme - lump sum not automatic ** Member of Nuvos Scheme - lump sum not automatic

CETV at 
31/3/14
CETV at 
31/3/13***
Real increase in 
CETV
512
462
42
2.5-5.0
plus 7.5-
10.0 lump 
sum
564
507
24
0-2.5 plus 
2.5-5.0 
lump sum
642
588
15
0-2.5 plus
 (0)-(2.5) 
lump sum
480
456
(7)
313
282
9
0-2.5 plus
(0)-(2.5) 
lump sum
469
431
8
0-2.5 plus
 0-2.5 lump 
sum
361
335
2
0-2.5 plus 
0-2.5 lump 
sum

Pension figures supplied by MyCSP

## Remuneration Report 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 6.25% of pensionable earnings for classic and 3.5% and 8.25% for premium, classic plus and nuvos. Increases to employee contributions will apply from 1 April 2014. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of 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 a member builds up a pension based on his or her pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the 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. 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. Further details about the Civil Service pension arrangements can be found at the website  
www.civilservice.gov.uk/pensions 

## Cash Equivalent Transfer Values

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 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 

## Remuneration Report

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. 

## 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

## Partnership Pensions

None of the Senior Management team participates in partnership pension arrangements (see note 2).

## David Green Cb Qc Accounting Officer 23 June 2014 Statement Of Accounting Officer'S Responsibilities

1.	Under Section 5 of the Government Resources  
	 and Accounts Act 2000 HM Treasury has directed  
	 the SFO to prepare, for each financial year, accounts detailing the resources acquired, held or disposed of during the year and the use of resources during the year by the department during the year. 

2.The accounts are prepared on an accruals basis  
	 and must give a true and fair view of the state of affairs of the department and of its net resource outturn, resources applied to the objectives, changes in taxpayers' equity and cash flows for the financial year.

3. In preparing the accounts, the principal  
	 Accounting Officer is required to comply with  
	 the requirements of the Government Financial Reporting Manual and in particular to:

	 a.	observe the Accounts Direction issued by HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable  
	 	 accounting policies on a consistent basis; b.	
make judgements and estimates on a  
	 	 reasonable basis. c.	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; and d.	
prepare the accounts on a going concern basis.
4.	HM Treasury has appointed the Director of the  
	 SFO as the Accounting Officer of the Department. 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 Managing Public Money published by HM Treasury. 

## Governance Statement Scope Of Responsibility Committee Structure

This statement covers the SFO's governance arrangements for the year ended 31 March 2014. 

During the period covered by this report, the two key committees were the Management Board (MB) and the Audit and Risk Committee (A&RC). Their memberships are set out in the table below and their purpose and arrangements in the succeeding sections. In addition three sub-groups of the MB were created in November 2013:
The Serious Fraud Office (SFO) is a small government department under the superintendence of the Attorney General. The Director of the SFO (who is also the department's Accounting Officer) is appointed by and accountable to the Attorney General, who is answerable in Parliament for the SFO.  

- the Risk Management and Moderation Group (RMMG) - the Resource Planning Group - an ad-hoc group looking at the format and contents of management information
The Accounting Officer is responsible for maintaining a sound system of internal control, which supports the achievement of the SFO's policies, aims and objectives. The Director is also charged with safeguarding public funds and departmental assets for which he is personally responsible, in accordance with the responsibilities assigned to him in Managing Public Money.

There were also a number of supporting committees all of which fed into the work and responsibilities of at least one of the key committees. The supporting committees are:

## Governance Structure

- SCS Group - Case Evaluation Board - Case Review Panel - Strategic and Tactical Tasking and Co-ordination Group (STT&CG) - Training Board.  
The SFO's governance arrangements are in line with HM Treasury and Cabinet Office Code of Good Practice for Corporate Governance. Accordingly there is a clear understanding of the different levels of accountability within the SFO and this helps to promote effective planning and decision taking within the organisation.

Each committee has its own terms of reference which are published on the SFO's intranet so that all members of staff can be clear about their purpose.

In line with being superintended the Director meets the Attorney General regularly to discuss progress, key risks and issues arising.

Members
Management Board 
(MB)
David Green CB QC (Director)
Chair
Permanent Invitee
Attended throughout year
Alan Graham MBE (NED)

Chair
To 17 October 2013
Tony Osbaldiston (NED)

Chair
From 17 October 2013 
Norman Pickavance (NED)


From 17 October 2013 
Simon Duckworth DL (NED)


Attended throughout year 
Alun Milford (General Counsel)

Attended throughout year 
His Honour Geoffrey Rivlin QC (Advisor to the Director)

Attended throughout year 
Effective dates 
of attendance
Audit & Risk 
Committee 
(A&RC)

## Governance Statement

Members
Management Board 
(MB)
Lesley Dugdale (Head of Human Resources)

Attended throughout year
Barny Todd (Chief Financial Officer)

Permanent Invitee
Attended throughout year 
Kristin Jones (Head of Strategic Relations)

Permanent Invitee 
from Oct 2013
Attended throughout year 
Matthew Wagstaff (Head of Division A)

Attended throughout year 
Patrick Rappo (Head of Division B)

To 12 April 2013
Ben Morgan (Head of Division B)

From 19 August 2013
Jane de Lozey (Head of Division C)

Attended throughout year
Clare Whitaker (Head of Division D)

Attended throughout year
Mark Thompson (Head of Proceeds of Crime Division)

Permanent Invitee 
from Oct 2013 to 
March 2014
Attended throughout year
Kevin Davis (Chief Investigator)

Attended throughout year
Stuart Alford QC (Head of Special Projects Group)

From 2 September 2013
Mathew Mallett (interim Chief Technology Officer) 

Permanent Invitee 
from Dec 2013
From 2 December 2013

## Management Board (Mb)

The Director chairs the MB which meets every six weeks and comprises the SCS plus all 3 NEDs. The Management Board met eight times during 2013- 14. The MB operates as a team with each member of the board sharing a common interest in the overall performance and integrity of the SFO. Each member, therefore, represents the interests of the SFO as a whole at board meetings and not simply the interests of the member's particular area of responsibility. The MB advises on and supervises the strategic direction of the SFO enabling it to meet its statutory purpose of investigating and prosecuting serious or complex fraud, bribery and corruption. The MB specifically:

Effective dates 
of attendance
Audit & Risk 
Committee 
(A&RC)

- supports the Director in setting and articulating the vision for the organisation based on an agreed view of long-term capability and horizon scanning; - sets the SFO's professional standards, corporate values and culture; - makes sure that strategic decisions are based on a collective understanding of policy issues and that the design of the business facilitates the achievement of its strategic objectives; - monitors the SFO's external reputation and brand; - monitors performance against the operational business plan with reference to strategic aims and objectives and management information including the Monthly Operational Report (MOR), ensuring that the SFO is challenged on its outcomes, supporting the drive for improvement; - ensures sound financial management and advises on large operational projects or programmes; - ensures that the SFO has the capability to deliver current and future needs, and that appropriate succession plans are in place - monitors equality and diversity issues across the SFO;

## Governance Statement Audit And Risk Committee (A&Rc)

- resolves any issue referred to the MB by any other committee; and - sets, through the RMMG, the SFO's risk appetite ensuring that controls are in place to identify, manage and monitor strategic risks to which the organisation may be exposed. 
Working practices have been agreed so that the MB can discharge its responsibilities effectively. These practices deal with the cycle of meetings, setting agendas, the timetable for distributing papers and communicating decisions.

This Committee is chaired by a Non-Executive Director (NED) and as a minimum attended by all current NEDs who are also standing members. Other attendees include the Chief Financial Officer, Chief Technology Officer, Head of Strategic Relations and representatives of internal and external auditors, HMRC Internal Audit and the National Audit Office respectively.  This gives the Committee the independence it needs to discharge its responsibilities properly.  
The MB will always try to reach a decision by consensus. In exceptional cases, however, a decision may be taken by the Director alone because of the Director's ultimate personal responsibility for the SFO and as Accounting Officer.

Where appropriate, the Committee will call upon other SFO officials to attend meetings. The Director, as Accounting Officer, has an open invitation to attend all A&RC meetings, in particular those at which the Governance Statement and Accounts are reviewed. The makeup of the A&RC members changed in October 2013.  A new Chair was appointed (Tony Osbaldiston, replacing Alan Graham MBE), and a new NED (Norman Pickavance) was appointed to the Committee. Simon Duckworth DL continues to be a standing member. The A&RC met five times last year. The frequency of meetings will change in 2014-15 to four, on a quarterly basis.

The key information submitted to the MB is the Monthly Operational Report (MOR) (a collection of information from across the SFO's business, encompassing operational statistics, financial data, staffing and performance). The MOR is supplemented by the Case Risk Register (CRR) which provides a narrative of current casework. This information is collated monthly from individual reports provided by Heads of Divisions. Financial and other corporate information, the Strategic Risk Register (SRR) and the A&RC minutes and reports are also key documents considered by the MB. In addition to this formal role, there are other occasions when the MB may meet to discuss important issues that could affect the SFO's strategy, results or performance.

The purpose of the Committee is to support the Director as Accounting Officer and the MB by reviewing and assessing the reliability of the assurances that the Director and MB receive. The Committee also reviews and oversees the organisation's internal and external auditing arrangements, plans, results, and management responses. The Committee also considers the adequacy of the SFO's risk assessment, management procedures and internal control systems which are predominantly dealt with through the RMMG.

The Cabinet Office Code of Good Practice for Corporate Governance cites a nominations and governance committee as good practice. Because the SFO is a small, non-ministerial government department, the MB does not consider that a separate nominations and governance committee is necessary. Instead the MB carries out the nominations and governance function as part of its normal terms of reference.

## Governance Statement Evaluating The Effectiveness Of The Boards And Committees

The A&RC conducts an annual self-assessment of its effectiveness. Norman Pickavance is undertaking a review of the MB and will report in June 2014. The A&RC uses the National Audit Office's Audit Committee Self-Assessment Checklist template and undertook a self- assessment in March 2014. The self-assessment concluded that all of the principles of good practice in the checklist were achieved. The MB, with the exception of Tony Osbaldiston (NED), attended a two-day event in November 2013, and the agenda included working together as a Board. There were critical reviews of business planning, decision making and the SFO's vision, as well as forward planning. The function and purpose of the other groups designed to identify and embed best practice, and provide assurance to the MB, are set out below.

## Scs Group (Scsg)

The SCSG is a weekly meeting chaired by the Director. It is attended by the SFO's members of the Senior Civil Service and the Head of Communications. The SCSG is the principal forum for managing the SFO's performance and where day to day management decisions are made. The aim of the Group is to provide a forum at which appropriate representatives from the business can:

- share information frequently and regularly; - update members on important developments in specific parts of the business; - discuss issues that affect the whole business; and - receive immediate advice, support or resources to 
	 resolve issues.
The Group is responsible for:

- leading by example so that senior managers operate and are seen to operate as a co- ordinated team; - discussing and resolving (so far as possible) immediate operational and functional issues which may impact on the SFO's ability to deliver its targets. Where exceptionally this is not possible, the chair (or delegated member) will resolve matters; - drafting key papers and plans (for example, the annual business plan) for discussion and sign-off by the MB; - succession planning; - finance planning and monitoring; - scanning the horizon for opportunities to develop the SFO's business; and - identifying issues that need to be resolved outside the MB and ensuring that they are appropriately recorded, assigned and considered.

## Case Evaluation Board (Ceb)

The CEB enables the Director to make an informed decision based on the Board's recommendation to initiate or decline an investigation. The Board meets periodically, depending on the intelligence pipeline and reports to the Director. Core members are General Counsel, the Special Adviser and the Chief Investigator. The Chief Investigator attends, along with the relevant intelligence lead. Specifically the CEB will: 

- evaluate and challenge intelligence submissions against the SFO's Statement of Principle (which governs the basis upon which decisions are made as to which cases should be adopted for investigation); - assess strategic and tactical risk, cost/resource implications; and, where appropriate - consider potential cases in the context of HMG's  
	 strategic approach to economic crime

## Governance Statement Strategic & Tactical Tasking & Coordination Group (Stt&Cg)

CASE REVIEW PANEL (CRP)
The CRP meets several times a month and reports to the Director.  The Panel comprises the General Counsel, the Special Adviser, the Chief Investigator, the relevant Head of Division and appropriate members of the case team.  The Director may also attend. The CRP ensures that a level of appropriate scrutiny and challenge is given to every case by reviewing The Group, chaired by the Chief Investigator, meets on a monthly basis.  It is a decision making and resource management body that is pivotal to the delivery of the National Intelligence Model (NIM). Members include the General Counsel and all Heads of Operational Divisions.  The Group meets to discuss intelligence requirements, products and projects against the control strategy, operational capacity/capability and the prioritisation of resources 
- case progress against case strategy; and - casework risks together with plans to mitigate them.

## Other Organisational Arrangements

The frequency of CRPs for each case is informed by a programme which captures target dates for key milestones, case progress, agreed actions and the level of risk associated with the case. Full minutes are taken thus providing a written record and audit trail. 

The bulk of the SFO's resources are focused on the core business of investigation and prosecution, and associated proceeds of crime casework. The operational arm is organised into specialisms - bribery and corruption, fraud and proceeds of crime. 

This process highlights key risk areas and brings them to the attention of senior management.

## Training Board

Given the importance of evidence handling and the increasing electronic nature of evidence, the SFO has combined its material management and digital forensics group under the Chief Investigator, who also holds the roles of Senior Information Risk Owner (SIRO) and Departmental Security Officer (DSO).  A new SCS level post of Chief Technology Officer has been created to manage technology and digital services.

The Board, chaired by the Special Advisor, normally meets every 6 weeks and updates the MB on the rolling programme of training.  Members include the General Counsel, the Head of Strategic Relations, the Head of Human Resources, the Chief Investigator, Heads of Operational Divisions and others. The Board develops and delivers a programme of training for the investigation and prosecution of cases.  It assists the MB to identify ways of broadening capability, such as creating development activities to ensure staff are provided with practical experience, knowledge and skills to effectively investigate and prosecute SFO cases.  
There are corporate services teams which provide HR, finance, commercial and estate management services.  Another team deals with policy, Parliamentary and freedom of information matters and internal and external communications, including press which ensures good communications with wider government, the press, public and other stakeholders.  This team includes the international assistance function and also provides quality assurance through the conduct of internal reviews and the oversight of progress against HMCPSI's inspection recommendations.

## Governance Statement Risk

The SFO's approach to risk is to manage it to a reasonable level rather than eliminate all the risk of failure to achieve policies, aims and objectives. The organisation can only therefore give reasonable and not absolute assurance of effectiveness. The SFO actively considers and identifies potential risks to the organisation. Its strategy to identify and counter risks are based on clear senior management leadership and responsibility; delegation to appropriate levels of authority and functional areas of the organisation, and the availability of relevant training and information within the SFO. The Strategic Risk Register (SRR) (which is owned by the MB) covers three broad areas - environment (risks relating to external factors), business, and individual. The A&RC is responsible for ensuring that the SFO risk management policies and processes are adequate, implemented and complied with and reviews the SRR at its meetings.  In addition the RMMG - also attended by Internal Audit - has been in place since December 2013 with specific objectives to co-ordinate and guide risk management across the organisation, review and moderate case and divisional risk registers underpinning the SRR and consider and decide upon emerging risks and issues. As part of the RMMG process new risks are added to the registers, and others removed, as appropriate.   Both the MB and A&RC agendas include risk identification and management.  A major review of the SRR was undertaken in 2013 and a number of risks were removed or deescalated to divisional registers as they were not considered to be strategic risks.

## Risk Appetite3

A Risk Management booklet is published on the intranet and is available to all staff.  This outlines the SFO's approach to risk management, who does what, risk ratings and review processes. Using the SRR as its basis, the department's risk appetite was split into the following external and operational categories - finance, political, legal, business continuity, regulatory, information security, governance, external stakeholders and people. Each category was then allocated a tolerance of high, medium or low risk appetite depending on the information on the SRR. 

## Managing Risk

The SFO has a robust process in place to manage and mitigate organisational and operational risk and the risk management strategy is regularly reviewed. Risk appetites ensure that risks to the reputation of the organisation and its ability to deliver its operational duties are mitigated appropriately. This process is co-ordinated by the A&RC and latterly supported by the RMMG. Since December 2013 the RMMG has met four times Each SCS Group member is accountable for risk and mitigation in their divisions as well as corporately. The strategic, divisional and case risk registers are reviewed regularly, and risk assessment is part of the project methodology used by project managers in their work. The A&RC reviews the SFO's risk strategy and the SRR as a standing agenda item and provides regular commentary to the MB.  It also receives reports on the effectiveness of risk management processes and systems from the RMMG (as described above). The SRR is reviewed and discussed at most MB meetings.

## Governance Statement

establishing the decision making process at the time and physically locating electronic/hard copy case files. On 30 September at Southwark Crown Court, the court ruled in two cases in favour of the SFO's position that the previous Director was empowered to delegate the decision to accept cases. 

## Data Loss

Risk is inherent in the operational aspects of the SFO's business, particularly in the investigation and prosecution of cases.  Considerable management scrutiny and assurance is applied at case level to assess risk factors both when embarking upon an investigation and, where appropriate, a prosecution. 

 
At the prosecution stage, risks are balanced against the need to pursue cases in the public interest4.  
Staff have been alerted to the risk management pages on the intranet including the publication of the risk management booklet.  Further to this awareness training is anticipated for risk owners in 2014-15. Consistent with this the SFO also ensures that it complies with best practice guidance in respect of undertaking operational risk assessments particularly when deploying staff outside of the SFO estate on search operations.

The SFO discovered in June 2013 that material gathered from a number of sources during an investigation had been incorrectly sent to one of the witnesses in the case.  It conducted an urgent internal investigation into how this happened and separately commissioned two independent reviewers to:  

## Key Risks For 2013-14

Risk
Mitigating Actions

1) provide a report on the circumstances and make  
	 recommendations to improve processes, training and assurances to prevent future losses; and

Insufficient funding to pursue cases and cover liabilities from them 

2) provide feedback and assurance on processes  
	 and controls across the SFO and confirm that these were in good order with risks being properly addressed.

Chief Financial Officer to monitor and anticipate finance pressures and trends, and work with HMT to determine suitable funding strategies
Recruitment
Management Board has created a resources sub-group to plan recruitment, coupled with a pay and grading review to assist in defining resource requirements

## Key Challenges During 2013-14

Peter Mason CBE reported on (1) and Alan Woods on (2).  The recommendations of both reviews were considered by the MB and were largely accepted. An implementation programme, overseen by a senior programme manager, has been set up to take forward the recommendations. 

## Delegation Of Powers S1(3) Of The Cja 1987

Peter Mason returned at the end of March to consider the progress made. He was able to give positive assurance to the Director who is confident that the SFO now has the right checks and balances in place to avoid a similar incident from occurring again. Similarly, the SFO will be inviting Alan Woods back during the year 2014-15 and asking him to consider the progress made on his recommendations.

In September 2013 the SFO was, as a result of legal advice received, alerted to a potential argument concerning the former Director's decision to delegate his power to commence a criminal investigation to the then Chief Executive Officer. The SFO concluded that there were compelling arguments to support the view that the matter was not beyond doubt and that disclosure to relevant defence teams was thus necessary.  Significant time and resource was committed to identifying potentially affected cases (historical and current), The SFO also continues to work closely across government to learn the lessons from this incident, including the Cabinet Office and Information 

## Governance Statement

Commissioner's Office (ICO), who conducted an onsite visit at the end of May 2014 and spoke to key staff and reviewed the SFO's information storage, retrieval and disclosure processes in situ. Separately, as part of this exercise the SIRO function (see Other Organisational Arrangements above) was moved to the Chief Investigator.

## Recovery Of Vat On Contracted-Out Services

The SFO has revised its treatment of VAT on certain contracted-out services.  Historically VAT had been reclaimed on counsel fees and certain specialist staff.  Following a review by the newly appointed CFO upon his arrival in December 2012, it was determined that the SFO should not continue to recover VAT on counsel fees.  It was also determined to seek clarification on the recovery of VAT on certain specialist staff. The SFO made a self-report to HMRC in March 2013 and instigated discussions with HMRC to formally agree the treatment of recoverable VAT on contracted-out services. These discussions, coupled with an HMRC assessment which took place in October 2013, led to the SFO having a liability for reclaimed VAT in previous years.  Details of the liability, amounting to a total of £4,635k, including a penalty of £564k, interest of £104k, accrued tax of £798k and outstanding tax of £3,169k, are covered in the Management Commentary and Notes in this Annual Report and Accounts.

## Making Sure That We Do What We Need To Do

The Director, as Accounting Officer, is responsible for reviewing the effectiveness of the system of internal control. The main elements of the organisation's control framework include:

- A clearly defined 'Statement of Accounting Officer's Responsibilities' (see page 20 of this Annual Report and Accounts). - A MB with clear terms of reference and a defined  
	 membership, including at least three independent 
 

	 NEDs, which meets regularly to consider the strategic direction and operational needs of the SFO. - An A&RC chaired by a NED with clear terms of reference and defined membership, which meets at least four times a year to consider the reliability of assurances and to oversee the internal and external auditing arrangements, plans and results. - A SCS Group which comprises all senior managers 
 
	 whose function is to review performance and to resolve issues to make sure that the SFO delivers its objectives. - A bought-in internal audit service (provided by HMRC) which conducts an annual programme of specific reviews drawn up on a risk analysis basis, agreed by the A&RC and a complementary internal quality assurance team. - The Chair of the A&RC having regular bilateral meetings with both the HMRC Internal Audit Manager and the NAO Audit Director who have responsibility for the SFO. - Further embedding ethics within the SFO by collating all ethical codes and policies from the civil service in general and the SFO in particular into one easily accessible place on our intranet. This includes a detailed guide on standards of behaviour and conduct, the SFO's whistle-blowing policy, a clear corporate policy to combat fraud, and zero tolerance of dishonesty. - An Operational Handbook which has been reviewed and updated, and will continue to be on an on-going basis.  This covers all casework processes, procedures and best practice. - A clear structure of delegated responsibility; with all roles having been reviewed and responsibilities having been defined. - A framework of financial regularity and propriety supported by a Finance Manual which provides clear financial policies and protocols.  This also includes a register of gifts and hospitality for all staff. - Formally delegated budgets with clearly defined budgetary responsibilities for all senior budget holders.

## Governance Statement Quality Assurance Ministerial Directions And Machinery Of Government Changes

There were no ministerial directions given or Machinery of Government changes during 2013-14

## Cabinet Office Rules For Information Assurance

The SFO applies the Cabinet Office rules for information assurance and complies with the Security Policy Framework for the protection of physical security. 

The Head of Strategic Relations reports to the Director in relation to assurance, the scope of which is aligned to the matters examined by HMCPSI. Quality Assurance provides the Director with an effective and robust function that ensures that SFO's processes and procedures are fit for purpose and that best practice is shared across the Office. A rolling programme of work, developed using a risk-based approach, is agreed with the Director. The remit of Quality Assurance extends to all aspects of the business, including casework and the quality of decision making.  Close working with the SFO's internal auditors ensures review activity is efficiently co-ordinated and avoids duplication. There is an external role for Quality Assurance in relation to Her Majesty's Crown Prosecution Service Inspectorate (HMCPSI). This includes the facilitation of inspections and the development of action plans relating to the implementation of recommendations.  

## Hmcpsi Report

All laptops and other devices which are taken out of the office are encrypted and all IT equipment has its data ports disabled to prevent unauthorised copying of data, and minimise the risk of cyber-attacks. Heads of Divisions and other senior managers fulfil the role of information asset owners and are responsible for ensuring that case material is suitably protected at all times.  There is a system to provide exemptions if unencrypted data needs to be taken off the premises.

Until 12 March 2014, inspections were undertaken by invitation of the Director. On 13 March 2014 the Anti-Social Behaviour, Crime and Policing Bill: Miscarriages of Justice received Royal Assent. This Act contains the clause providing Her Majesty's Crown Prosecution Service Inspectorate (HMCPSI) with the statutory powers to inspect the SFO.  This provision came into force in June 2014.

With effect from 1 April 2013, all SCS in the SFO were appointed Information Asset Owners and required to submit quarterly returns to the SIRO on data losses or incidents within their areas of responsibility.  All staff within the SFO are required to complete levels one, two or three of the on-line Responsible for Information training, depending on their level of seniority and responsibility. Compliance with this requirement is monitored by the SIRO.

In November 2012, HMCPSI published its first report on the SFO. The report made eight recommendations which the SFO has been working to implement throughout the past year. The Quality Assurance Manager oversees the implementation work and progress is monitored regularly by the Management Board. The Director invited the Chief Inspector to conduct a follow-up inspection in the autumn of 2013 to examine the progress made. Publication of the follow-up report is expected in the summer of 2014. 

## Governance Statement Review Of Effectiveness

The Director, as Accounting Officer, is responsible for reviewing the effectiveness of the system of internal control. His review of its effectiveness is informed by the work of the internal auditors and the Quality Assurance Manager (who is responsible for developing and maintaining the internal control framework) and comments made by the external auditors in their Audit Completion Report and other reports.  The Head of Internal Audit provides an annual report and Opinion on the effectiveness of governance, risk management and controls within the SFO.  For 2013-14 the HIA has reported Satisfactory Assurance for all three with improving trends for governance and risk management and a flat trend for controls.  Risk management, in particular, represents an improvement on 2012-13, where only Limited Assurance was provided. The MB and A&RC have advised the Director on the effectiveness of the system of internal control. There is a continuing plan to address weaknesses and make sure that the system is continuously improved. Measures in place include:

- regular reports by the internal auditors, based  
	 on the annual Internal Audit Plan, and in line with 
 
	 the Government Internal Audit Standards, together with any recommendations for improvement; - monthly operational reports (MOR) which are distributed to members of the MB on operational, financial, staffing and performance matters; - improved business and strategic planning processes; - improved data security procedures and supporting communications; - regular reports from the chair of the A&RC to the MB; and - regular advice on the effectiveness of the system of internal control.

## David Green Cb Qc Accounting Officer The Certificate And Report Of The Comptroller And Auditor General To The House Of Commons

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 certify that I have audited the financial statements of the Serious Fraud Office for the year ended 31 March 2014 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 that report as having been audited.  

## Respective Responsibilities Of The Accounting Officer And Auditor

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

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.

In my opinion, in all material respects:

## Scope Of The Audit Of The Financial Statements

- the Statement of Parliamentary Supply properly presents the outturn against voted Parliamentary control totals for the year ended 31 March 2014 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.
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 

## And Auditor General To The House Of Commons Opinion On Financial Statements

In my opinion:

- the financial statements give a true and fair view of the state of the Department's affairs as at 31 March 2014 and of its net operating cost for the year then ended; and - the financial statements have been properly prepared in accordance with the Government Resources and Accounts Act 2000 and HM Treasury directions issued thereunder.

## Opinion On Other Matters

In my opinion:

- the part of the Remuneration Report to be audited has been properly prepared in accordance with HM Treasury directions made under the Government Resources and Accounts Act 2000; and - the information given in the Management Commentary and Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

## Matters On Which I Report By Exception

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

- adequate accounting records have not been kept; or - the financial statements and the part of the Remuneration Report to be audited are not in agreement with the accounting records and returns; or - I have not received all of the information and explanations I require for my audit; or - the Governance Statement does not reflect compliance with HM Treasury's guidance.
REPORT 
I have no observations to make on these financial statements.

## Sir Amyas C E Morse

Comptroller and Auditor General
24 June 2014 National Audit Office 157-197 Buckingham Palace Road Victoria London SW1W 9SP

## Statement Of Parliamentary Supply Summary Of Resource And Capital Outturn 2013-14

£000 
 
 2013-14
2012-13
Note
 Voted 
 Non Voted 
 Total 
 Voted 
 Non Voted 
 Total 
Total
Estimate
Outturn
Voted outturn compared with Estimate: saving/ (excess)
Departmental Expenditure Limit


- Resource
 2.1
 53,607
-
53,607
51,715
-
51,715
1,892
38,050
- Capital
 2.2
1,440
-
  1,440
1,295
-
1,295
145
1,107
Annually Managed Expenditure - Resource
2.1
2,000
-
2,000
(336) 
-
(336) 
2,336 
(22)
 
 
Total Budget
 
57,047
-
57,047
52,674 
-
52,674 
4,373 
39,135


Total Resource
 
55,607
55,607
51,379 
-
51,379
4,228 
38,028
Total Capital
 
1,440
-
1,440
1,295
-
1,295
145
1,107
Total
 
57,047
-
57,047
52,674 
-
52,674 
4,373 
39,135
NET CASH REQUIREMENT 2013-14
£000 
 
 2013-14
2012-13
Note
 
 Estimate
 
Outturn
Net Cash Requirement
 4
54,553
51,394
3,159
36,222
ADMINISTRATION COSTS 2013-14
£000 
 
 2013-14
2012-13
Note
 
 Estimate
 Outturn
Net Cash Requirement
 3.2
7,900
7,281
619
7,019

Explanation of variances between Estimate and Outturn are given in Note 2 and in the Management Commentary. The notes on pages 43 to 59 form part of these accounts 

Outturn
Outturn compared with Estimate: saving/ 
 
(excess)
Outturn
Outturn compared with Estimate: saving/ 
 
(excess)
Outturn

## 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 2013-14 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 2013-14 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; and 
- 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. Departments must include the following notes as appropriate, providing additional disclosure of other transactions accounted for differently between the Statement of Parliamentary Supply and IFRS-based accounts.   

## Sops 1.Aa Pfi And Other Service Concession Arrangements

The National Accounts basis for recognising service concession arrangements is broadly similar to UK- GAAP
, applying a risk-based test to determine the financial reporting. IFRS-based recognition of service concession arrangements (IFRIC 12) is determined using control tests, which can result in a different on/off balance sheet treatment. 

## Sops1.Ab Capital Grants

Grant expenditure used for capital purposes are treated as capital (CDEL) items 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. 

## Sops1.Ac Equity Withdrawals

Dividends received from investments will always be recorded as resource income in IFRS-based accounts, but they will occasionally be recorded as capital equity withdrawals (repayment of capital from an investee to the department) in the Statement of Parliamentary Supply where the dividend is greater than the investee profits for the current reporting period and previous two periods. 

## Notes To The Departmental Resource Accounts (Statement Of Parliamentary Supply) Sops1.Ad Prior Period Adjustments (Ppas) Sops1.Af Provisions - Administration And Programme Expenditure

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 from 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.) 

## Sops1.Ae Receipts In Excess Of Hm Treasury Agreement

Provisions recognised in IFRS-based accounts are not recognised as expenditure for national accounts purposes until the actual payment of cash (or accrued 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 3.2.

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/loss on disposal of assets; (ii) income generation above department Spending Review settlements; and (iii) income received above netting-off agreements. 

## Notes To The Departmental Resource Accounts (Statement Of Parliamentary Supply) Sops2 Net Outturn Sops2.1 Analysis Of Net Resource Outturn By Section

 2013-14 
2012-13
Outturn
Outturn
Estimate
Administration
 
 Programme
 
£000
 
Gross
Income
Net
Gross
Income
Net
Net 


Total
Spending in Departmental Expenditure Limit Voted:
A  Investigations & Prosecutions 
44,860
(426)
44,434
53,607
1,892
38,050
7,281	
      -	
     7,281
 
Voted:
B   New provision and adjustment to existing provisions
 (336)
-
 (336)
2,000
 2,336
(22) 
-	
      -	
     -
Total
7,281
         -    
7,281
44,524
(426)
44,098
55,607
4,228
38,028

Explanation of variation between Estimate and Outturn (net total resources): There has been an overall underspend of £4,228k against the Estimate £1,892k of this was within DEL, where savings against the estimate were achieved by identifying synergies between two cases as they progressed, and by a change in the way personnel were deployed on one of the cases. A further case did not progress as quickly as expected. The remaining underspend of £2,336k relates to AME. Due to its unpredictable nature it is very difficult to estimate spend within AME.A fuller explanation of the variances is given in the Management Commentary.

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

 2013-14 
2012-13
Outturn
Outturn
Estimate
Administration
 
 Programme
 
£000
 
Gross
Income
Net
Gross
Income
Net
Net 


Total
Spending in Departmental Expenditure Limit
-	
      -	
          -
A  Investigations & Prosecutions 
1,316
(21)
1,295
1,440
145
1,107
Total
-
-
-
1,316
(21)
1,295
1,440
145
1,107 
Net total 
compared 
to Estimate
Total
Net total 
compared 
to Estimate
Total

## Notes To The Departmental Resource Accounts (Statement Of Parliamentary Supply) Sops3. Reconciliation Of Outturn To Net Operating Cost And Against Administration Budget Sops3.1 Reconciliation Of Net Resource Outturn To Net Operating Cost

2013-14
£000
2012-13
£000
Outturn
Outturn
Note
Total resource outturn in Statement of Parliamentary Supply
Budget
2
 51,379
38,028
Non Budget
-
-
Net Operating Cost in Statement of Comprehensive Net Expenditure
 51,379
38,028

## Sops3.2 Outturn Against Final Administration Budget And Administration Net Operating Costs

2013-14
£000
2012-13
£000
Outturn
Outturn
Estimate - Administration costs limit
7,900
10,614
Outturn - Gross administration costs
7,281
7,019
Outturn - Income relating to administration costs Outturn - Net administration costs
7,281
7,019
Reconciliation to operating costs: Less: provisions utilised (transfer from Programme)
(332)
(271)
Less: Other
85
123
Administration Net Operating Costs
7,034
6,871

## Notes To The Departmental Resource Accounts (Statement Of Parliamentary Supply) Sops4. Reconciliation Of Net Resource Outturn To Net Cash Requirement

2013-14
£000
2012-13
£000
Note
Estimate
Outturn
Net total outturn 
compared with 
Estimate: saving / 
(excess)
Outturn
Net Resource Outturn
2.1
55,607
51,379
4,228
38,028
Capital Capital outturn
2.2
1,440
1,295
145
1,107
Accruals to cash adjustments 
Depreciation
6,7
(1,870)
(1,631)
(239)
(2,083)
New Provisions and adjustments to previous provisions
14
(2,000)
 (443)
(1,557)
(249)
Increase / Decrease  in payables
1,376
343
1,033
(225)
Increase / Decrease  in receivables
(252)
252
(459)
Other non cash items
(76)
76
(168)
Use of Provision
14
779
(779)
271
Net cash requirement
54,553
51,394
3,159
36,222

Explanation of variation between Estimate and Outturn: The net resource outturn variance is £4,228k after taking account of variances on capital acquisitions, movements on non-cash items and reductions in current liabilities including provisions the cash requirement variance for the year was 
£3,159k. The Management Commentary within the Foreword to the Accounts gives further details of operating variances.

## Sops5. Income Payable To The Consolidated Fund There Is No Income Payable To The Consolidated Fund. (2012-13 £Nil) Statement Of Comprehensive Net Expenditure

For the year ended 31 March 2014

| £000                                                    | 2013-14          | 2012-13          |
|---------------------------------------------------------|------------------|------------------|
| Note                                                    | Department Total | Department Total |
| Administration Costs                                    |                  |                  |
|                                                         |                  |                  |
| Staff costs                                             | 2                | 4,109            |
| Other costs                                             | 3                | 2,925            |
| Income                                                  |                  |                  |
| Programme expenditure                                   |                  |                  |
| Staff costs                                             | 2                | 16,926           |
| Other costs                                             | 4                | 27,845           |
| Income                                                  | 5                | (426)            |
| Net Operating Cost for the year ended 31 March 2014     | 51,379           | 38,028           |
| Total expenditure                                       | 51,805           | 40,917           |
| Total income                                            | 5                | (426)            |
| Net Operating Cost for the year ended 31 March 2014     | 51,379           | 38,028           |
| Other comprehensive Net Expenditure                     |                  |                  |
| Items that will not be reclassified to operating costs: |                  |                  |
| Net (gain) / loss on:                                   |                  |                  |
| - revaluation of property, plant & equipment            |                  |                  |
| -                                                       | -                |                  |
| Total comprehensive expenditure for                     |                  |                  |
| the year ended 31 March 2014                            | 51,379           | 38,028           |

The notes on pages 43 to 59  form part of these accounts

## Statement Of Financial Position

As at 31 March 2014

| £000                                  | 2013-14    | 2012-13   |
|---------------------------------------|------------|-----------|
| Note                                  | Department |           |
| Total                                 |            |           |
| Department                            |            |           |
| Total                                 |            |           |
| Non-current assets:                   |            |           |
| Property, plant and equipment         | 6          | 2,458     |
| Intangible assets                     | 7          | 1,789     |
| Trade and other receivables           | 12         | 35        |
| Total non-current assets              | 4,282      | 4,591     |
| Current assets:                       |            |           |
| Trade and other receivables           | 12         | 1,160     |
| Cash and cash equivalents             | 11         | 659       |
| Total current assets                  | 1,819      | 2,925     |
| Total assets                          | 6,101      | 7,516     |
| Current liabilities:                  |            |           |
| Trade and other payables              | 13         | (4,218)   |
| Provisions                            | 14         | (557)     |
| Total current liabilities             | (4,775)    | (6,441)   |
| Non-current assets plus/less net cur- |            |           |
| rent assets/liabilities               |            |           |
| 1,326                                 | 1,075      |           |
| Non-current liabilities               |            |           |
| Trade and other payables              | 13         | -         |
| Provisions                            | 14         | (369)     |
| Total non-current liabilities         | (369)      | (193)     |
| Assets less liabilities               |            |           |
| 957                                   |            |           |
| 882                                   |            |           |
| Taxpayers' equity and other reserves: |            |           |
| General fund                          | 817        | 682       |
| Revaluation reserve                   | 140        | 200       |
| Total equity                          | 957        | 882       |

The notes on pages 43 to 59 form part of these accounts 

## David Green Cb Qc Accounting Officer 23 June 2014 Statement Of Cash Flows

For the year ended 31 March 2014
£000
2013-14
2012-13
Note
Department 
Total
Department 
Total
Cash flows from operating activities
 
Net operating cost 
(51,379)
(38,028)
Adjustments for non-cash transactions 
3,4
2,155
2,500
(Increase)/Decrease in trade and other receivables 
12
252
459
less movements in receivables relating to items not passing through the Statement of Comprehensive Net Expenditure Increase/(Decrease) in trade payables
13
(1,154)
697
less movements in payables relating to items not passing through the Statement of Comprehensive Net Expenditure
810
(266)
Use of provisions
14
(779)
(271)
Net cash outflow from operating activities
(50,095)
(34,909)
Cash flows from investing activities
Purchase of property, plant and equipment
6
(1,139)
(1,154)
Purchase of intangible assets
7
(160)
(159)
Proceeds of disposal of property, plant and equipment Proceeds of disposal of intangibles
Net cash outflow from investing activities
(1,299)
(1,313)
Cash flows from financing activities
From the Consolidated Fund (Supply)- current year
50,567
36,715
Advances from the  Contingencies Fund
11,000
-
Repayments to the Contingencies Fund
(11,000)
-
Net financing
50,567
36,715
 
(827)
493
Net increase/(decrease) in cash and cash equivalents in the period before adjustment for receipts and payments to the Consolidated Fund
Receipts due to the Consolidated Fund which are outside the scope of the Department's activities
-
-
Payments of amounts due to the Consolidated Fund
-
(136)
 
Net increase/(decrease) in cash and cash equivalents in the period after adjustment for receipts and payments to the Consolidated Fund
(827)
357
Cash and cash equivalents at the beginning of the period
11
1,486
1,129
Cash and cash equivalents at the end of the period
11
659
1,486

The notes on pages 43 to 59  form part of these accounts

## Statement Of Changes In Taxpayers' Equity

For the year ended 31 March 2014
£000
Note
General  Fund
Revaluation 
Reserve
Total 
Reserves
Balance at 31 March 2012
2,297
341
2,638
Changes in accounting policy
- 
- 
               - 


Restated balance at 1 April 2012
2,297
341
2,638


Net Parliamentary Funding - drawn down
36,715
36,715
Net Parliamentary Funding - deemed
993
993
Supply payable/(receivable) adjustment
(1,486)
(1,486)
Comprehensive Net Expenditure for the Year
(38,028)
(38,028)
Non-Cash Adjustments
Non-cash charges - auditor's remuneration
3
65
65
Movements in Reserves
Transfer between reserves
126
(141)
(15)
Balance at 31 March 2013
682
200
882
Net Parliamentary Funding - drawn down
50,567
50,567
Net Parliamentary Funding - deemed
1,486
1,486
Supply payable/(receivable) adjustment
13 (a)
(659)
(659)
Comprehensive Net Expenditure for the Year
(51,379)
(51,379)
Non-Cash Adjustments
Non-cash charges - auditor's remuneration
3
60
60
Movements in Reserves
Transfer between reserves
60
(60)
-
Balance at 31 March 2014
817
140
957



The notes on pages 43 to 59  form part of these accounts

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

Trade receivables Trade and other receivables are non-interest bearing and stated at fair value.  Provision is made where there is evidence that the balances will not be recovered in full.

Cash and cash equivalents Cash and cash equivalents include cash at bank and in hand, and short-term highly-liquid deposits with a maturity period of three months or less.

Trade payables Trade payables are not interest bearing and are stated at their fair value.

## 1.3  Property, Plant And Equipment And Intangible Assets

These financial statements have been prepared in accordance with the 2013-14 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 Serious Fraud Office for the purpose of giving a true and fair view has been selected. The particular policies adopted by the Serious Fraud Office are described below. They have been applied consistently in dealing with items that are considered material to the accounts. In addition to the primary statements prepared under IFRS, the FReM also requires the Department to prepare one 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. 

## 1.1	 Accounting Convention

These accounts have been prepared under the historical cost convention modified to account for the revaluation of property, plant and equipment and intangible assets.

## 1.2 Financial Instruments

Financial assets and financial liabilities are recognised in the Statement of Financial Position when the SFO becomes a party to the contractual provisions of the instrument.

The Department does not own any freehold land and buildings. Property, plant and equipment assets are included in the Statement of Financial Position at their fair values. In line with the FReM, indexation is used to assess depreciated replacement cost as a proxy for fair value. Indexation adjustments are applied at the reporting date where not doing so would cause the fair values to be materially misstated. Expenditure on property, plant and equipment and intangible assets is capitalised when that expenditure, on an individual basis, is £2,000 or more. For IT expenditure the £2,000 threshold is applied to assets on a grouped basis. Development expenditure represents internally generated assets under construction. Property, plant and equipment and intangible assets are subject to consideration for an annual impairment review if there are any indicators of such impairments arising.

## 1.4  Revaluation Reserve

The Department is subject to a limited range of financial instruments as its cash requirements are met through the Estimates process and it is not exposed to significant credit, liquidity or market risk.

Borrowings The SFO has limited powers to borrow money to fund short-term fluctuations in cash flow.

The unrealised element of the Revaluation Reserve is disclosed in the Statement of Financial Position. Realised elements are transferred from the reserve to the General Fund. Downward revaluations are charged to the existing balance brought forward for that particular asset. If there is no previous balance, the charge is expensed in-year and disclosed in the Statement of Comprehensive Net Expenditure.

## Statement Of Changes In Taxpayers' Equity 1.5 Depreciation And Amortisation

Depreciation and amortisation are provided monthly on a straight line basis at rates calculated to write off the valuation of property, plant and equipment and intangible assets, less the estimated residual value, over their estimated useful lives. Depreciation and amortisation are provided from the month 

PROPERTY, PLANT AND EQUIPMENT Improvements to leasehold property
Over the unexpired term of the lease
Information technology
5 years
Furniture and fittings
10 years or over the unexpired term of the property lease (whichever is the shorter)
Intangible assets software licenses
5 years or over the unexpired term of the related software license (whichever is the shorter)
Information technology
5 years or over the unexpired term of the related software license (whichever is the shorter)
website costs
5 years

Development expenditure is not amortised until the assets are brought into use, at which point amortisation is applied in accordance with the asset category to which the asset is transferred on coming into use. 

## 1.6 Costs Awarded To The Serious Fraud Office (Sfo)

Costs may be awarded to the SFO as prosecutor under Section 18 of the Prosecution of Offences Act 1985 following a successful prosecution, or as a result of subsequent appeal proceedings. Where costs are awarded, they may subsequently be revoked or reduced as a result of a successful appeal by the defendant. The court may order that they are not to be recovered without leave of the court, defer recovery until a future date, or subsequently vary the amount and/or timing of recovery or waive it altogether. Responsibility for the recovery of costs awarded rests with the appropriate magistrates' court.  The SFO has no powers to recover costs awarded to it.

of acquisition up to and including the month of disposal. The useful lives, residual values and depreciation and amortisation methods are reviewed annually with any revisions to those estimates accounted for prospectively. The respective useful lives are as follows:
Where costs are awarded, they are shown as receivables on the Statement of Financial Position. Where they may not be recovered without leave of the court, full provision is made against them until leave is obtained.  In other cases, the SFO makes a judgement on the likelihood of costs being recovered based on the circumstances of each case, and may provide accordingly.  In practice, full provision is made one year after the debt becomes due except where the defendant is making regular payments to the SFO.  Where costs are subject to appeal proceedings, full provision is made against them until all proceedings are finally determined. Subsequent treatment of these receivables and provisions will depend on the outcome of the proceedings. Costs awarded to the SFO are written off after a period of five years unless there are compelling reasons to believe that payment will be received. 

## Notes To The Departmental Accounts 1.7	Costs Awarded Against The Sfo 1.11 Foreign Exchange

Any costs awarded against the SFO are included under prosecution costs for the year in which the awards are made.

## 1.8	Civil Recovery Receipts

The presentational currency used for the financial statements is sterling. Transactions which are denominated in a foreign currency are translated at the rate of exchange ruling on the date of the transaction, except where rates do not fluctuate significantly, in which case an average rate for the period is used.

## 1.12 Pensions

The SFO's share of receipts from Civil Recovery and confiscation orders is recognised at the point that payment of the Order is made into the third party bank account prior to onward transfer to the Home Office as required by the Asset Recovery Incentivisation Scheme (ARIS). Payment by the Home Office of the SFO's cash share of the ARIS receipt is generally made at the end of the month following the transfer of the settlement to the Home Office.

## 1.9	 Other Income

Any amounts relating to other income not covered above is recognised at the point of payment.

Past and present employees are covered by the provisions of the Principal Civil Service Pension Scheme (PCSPS).  The defined benefit scheme within the PCSPS is unfunded and is contributory. The Department recognises the expected cost of future pension liabilities in a systematic and rational basis over the period during which it benefits from employees' services by payment to the PCSPS of amounts calculated on an accruing basis. Liability for payment of future benefits is a charge on the scheme.

## 1.13 Provisions - Early Departure Costs 1.10 Administration And Programme Expenditure

The Department is required to meet the additional cost of benefits beyond the normal PCSPS benefits in respect of employees who retire early. The Department provides in full for this cost when an early retirement programme has been announced and is binding. 

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 set out in the Consolidated Budgeting guidance issued by HM Treasury.

## 1.14 Provisions - Other

ADMINISTRATION COSTS
Administration costs reflect the costs of running the Department.

The Department provides for legal and constructive obligations which are of uncertain timing or amount at the reporting date on the basis of the best estimate of the expenditure required to settle the obligation. Where the effect of the time value of money is significant, the estimated risk-adjusted cash flows are discounted using the Treasury discount rate.

PROGRAMME COSTS
Programme costs reflect non-administration costs being the direct cost and associated overheads of prosecution. These costs include the employment of counsel and reimbursements paid to witnesses for costs incurred through their attendance at court. Associated overheads include rental and other accommodation costs.

## Notes To The Departmental Accounts 1.15 Operating Leases

Operating lease rentals and lease incentives are charged to the Statement of Comprehensive Net Expenditure in equal amounts over the lease term. We currently hold operating leases for our premises as well as reprographic equipment.

## 1.16 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 cost of property, plant and equipment and intangible assets. Where output tax is charged or input VAT is recoverable, the amounts are stated net of VAT.

## 1.17 Third Party Assets

The Department may seize monetary assets. If the Department retains any monetary assets, it invests the sums in an interest bearing account. The principal and the interest earned are held on behalf of the third party and are not a part of the Department's accounts.  

## 1.18 Contingent Liabilities

In addition to contingent liabilities disclosed in accordance with 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, contingent liabilities which are required to be disclosed under IAS 37 are stated at discounted amounts and the amount reported to Parliament separately noted. Contingent liabilities that are not required to be disclosed by IAS 37 are stated at the amounts reported to Parliament.

## 1.19 Areas Of Judgement And Key Sources Of Estimation Uncertainty

The preparation of financial statements requires managers to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from these estimates.  Information about such judgements and estimates is contained in the accounting policies or the notes to the financial statements, and the key areas are summarised below. No sources of estimation uncertainty that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year have been identified. 

## 1.20 Impending Application Of Newly Issued Accounting Standards Not Yet Effective

The Department has reviewed the IFRSs in issue but not yet effective, to determine if it needs to make any disclosures in respect of those new IFRSs that are or will be applicable. References to 'new IFRSs' includes new Interpretations and any new amendments to IFRSs and Interpretations. It has been determined that there are no new IFRSs which will have a significant impact on the Department's financial statements. 

## Notes To The Departmental Accounts 2 (A) Staff Numbers And Related Costs Staff Costs Comprise:

Permanently 
employed staff
Others
Total
Total
Wages and salaries
13,472
3,926
17,398
16,033
Social security costs
1,156
-
1,156
1,122
Other pension costs
2,481
-
2,481
2,340
Sub Total
17,109
3,926
21,035
19,495
-
-
-
-
Less recoveries in respect of outward secondments
Total net costs *
17,109
3,926
21,035
19,495
* Of which	
Charged to administration costs	   	
  4,109
	
	
Charged to programme costs	
	
16,926


21,035

£48k (£36k 12-13) of staff costs have been capitalised and are not included in the figures above The Principal Civil Service Pension Scheme (PCSPS) is an unfunded multi-employer defined benefit scheme but the SFO is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the scheme as at 31 March 2007. You can find details in the resource accounts of the Cabinet Office: Civil Superannuation (www. civilservice.gov.uk/pensions). 

(2012 £11,301) were paid to one or more of the 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 £nil (2012 £nil) were payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service or ill health retirement of these employees. Contributions due to the partnership pension providers at the balance sheet date were £nil. Contributions prepaid at that date were £nil (2012 £nil).

For 2013-14, employers' contributions of £2,446,980 were payable to the PCSPS (2012- 13 £2,402,135) at one of four rates in the range 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 contribution rates are set to meet the cost of the benefits accruing during 2013-14 to be paid when the member retires and not the benefits paid during this period to existing pensioners. Employees can opt to open a partnership pension account, a stakeholder pension with an employer contribution. Employers' contributions of £16,970 

2013-14   £000
2012-13   £000

## Notes To The Departmental Accounts 2 (B) Average Number Of Employees The Average Number Of Full-Time Equivalent Employees During The Year Was As Follows:

2013-14 
£000
2012-13 
£000
Permanently 
employed staff
Fixed Term 
Appointments
Other
Total
Total
Serious Fraud Office
282
12
36
330
326
Total
282
12
36
330
326

## 2	(C)   Reporting Of Civil Service And Other Compensation Schemes - Redundancy And Exit Packages

| 2013-14             | 2012-13    |
|---------------------|------------|
| Number of           |            |
| compulsory          |            |
| redundancies        |            |
| Number of other     |            |
| departures          |            |
| agreed              |            |
| Total number by     |            |
| cost band           |            |
| Total number by     |            |
| cost band           |            |
| <£10,000            | -          |
| £10,000 - £25,000   | -          |
| £25,000 - £50,000   | -          |
| £50,000 - £100,000  | -          |
| £100,000 - £150,000 | -          |
| £450,000-£475,000   | -          |
| Total Number        |            |
| of exit packages    |            |
| -                   | 12         |
| 11                  |            |
| Total cost (£000)   | -          |
| 1,105               |            |

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.

## Notes To The Departmental Accounts 3. Other Administration Costs

|                                                   | 2013-14   | 2012-13   |
|---------------------------------------------------|-----------|-----------|
| Note                                              | £000      | £000      |
| Rentals under operating leases:                   |           |           |
| 253                                               | 384       |           |
| Non-cash items:                                   |           |           |
| Depreciation                                      | 6         | 137       |
| Amortisation                                      | 7         | 134       |
| Auditor's remuneration and expenses               | 60        | 65        |
| Write back's / write-offs                         | -         | -         |
| Amounts provided for early departure costs        | 14        | 80        |
| Amounts provided for Dilapidations                | 14        | 5         |
| Loss on disposal of property, plant and equipment | -         | 18        |
| 416                                               | 571       |           |
| Other expenditure:                                |           |           |
| General Administration                            | 851       | 776       |
| VAT, Penalty & Interest                           | 668       | -         |
| IT costs                                          | 407       | 453       |
| Other accommodation costs                         | 235       | 351       |
| Travel and subsistence                            | 45        | 35        |
| Consultancy                                       | 48        | 31        |
| Hospitality                                       | 2         | 5         |
| 2,256                                             | 1,651     |           |
| Total                                             | 2,925     | 2,606     |

## Notes To The Departmental Accounts 4. Programme Costs

Rentals under operating leases:
1,522
1,962
Non-cash items:
Depreciation 
6
707
1,072
Amortisation 
7
653
656
Amounts provided for Dilapidations
14
22
47
Amounts no longer required for legal provisions
14
336
68
 Loss on disposal of property, plant, and equipment
21
86
Other expenditure: 
Civil Litigation
10,415
822
Counsel costs
8,426
5,059
IT costs
2,271
1,775
Other accommodation costs
1,581
1,932
Other programme costs
970
549
General Administration
548
744
Costs awarded against the SFO
136
3,655
Travel and subsistence 
216
203
Investigating Accountants costs
19
182
Hospitality
2
4
Total
27,845
18,816

## 5. Income

| Civil recoveries   | -       | 1,013   |
|--------------------|---------|---------|
| Costs awards       | 418     | 62      |
| Other income       | -       | 800     |
| Incentivisation    | 8       | 1,014   |
| Total              | 426     | 2,889   |
| 2013-14            | 2012-13 |         |
| Note               | £000    | £000    |
| 1,739              | 1,929   |         |
| 24,584             | 14,925  |         |
| 2013-14            | 2012-13 |         |
| £000               | £000    |         |

## Notes To The Departmental Accounts 6. Property, Plant And Equipment  2013-14

AUC
£000
Total
£000
Improvements to 
Leasehold 
Property £000
Information 
Technology
£000
Furniture 
and Fittings
£000
Cost or valuation
At 1 April 2013
916
3,027
-
16
3,959
Additions
752
404
-
-
1,156
Disposals
-
(116)
-
-
(116)
Reclassifications
-
(55)
-
(16)
(71)
Revaluations
-
-
-
-
At 31 March 2014
1,668
3,260
-
-
4,928
Depreciation
At 1 April 2013
80
1,665
-
-
1,745
Charged in year
236
608
-
-
844
Disposals
-
(95)
-
-
(95)
Reclassifications
-
(24)
-
-
(24)
Revaluations
-
-
-
-
-
At 31 March 2014
316
2,154
-
-
2,470
Net book value at 31 March 2014
1,352
1,106
-
-
2,458
Net book value at 31 March 2013
836
1,362
-
16
2,214
Asset financing: All assets are owned.

## 6. Property, Plant And Equipment  2012-13

Improvements 
to Leasehold 
Property
Information 
Technology
Furniture 
and Fittings
AUC
Total
£000
£000
£000
£000
£000
Cost or valuation
At 1 April 2012
3,544
3,550
834
-
7,928
Additions
916
252
-
16
1,184
Disposals
(3,544)
(775)
(834)
-
(5,153)
Revaluations
-
-
-
-
-
At 31 March 2013
916
3,027
-
16
3,959
Depreciation
At 1 April 2012
3,087
1,684
720
-
5,491
Charged in year
537
645
110
-
1,292
Disposals
(3,544)
(664)
(830)
-
(5,038)
Revaluations
-
-
-
-
-
At 31 March 2013
80
1,665
-
-
1,745
Net book value at 31 March 2013
836
1,362
-
16
2,214
Net book value at 31 March 2012
457
1,866
114
-
2,437
Asset financing: All assets are owned.

## Notes To The Departmental Accounts Reconciliation Of Cash Flows To Property, Plant And Equipment Additions

| 2013-14                                                | 2012-13   |
|--------------------------------------------------------|-----------|
| £000                                                   | £000      |
| Total property, plant and equipment additions          | 1,156     |
| Opening property, plant and equipment accrual          | 80        |
| Closing property, plant and equipment accrual          | (97)      |
| Cash flows for property, plant and equipment additions | 1,139     |

## 7. Intangible Assets 2013-14

Information 
Technology
Software 
Licenses
Website 
Costs
Development 
Expenditure
Total
£000
£000
£000
£000
£000
Cost or valuation
At 1 April 2013
7,543
1,061
358
-
8,962
Additions
27
57
-
76
160
Disposals
-
-
-
-
-
Write-back
-
-
-
-
-
Reclassifications
-
71
-
-
71
At 31 March 2014
7,570
1,189
358
76
9,193
Amortisation
At 1 April 2013
5,377
1,017
199
-
6,593
Charged in year
681
49
57
-
787
Disposals
-
-
-
-
-
Write-back
-
-
-
-
-
Reclassifications
-
24
-
-
24
At 31 March 2014
6,058
1,090
256
-
7,404
Net book value at 31 March 2014
1,512
99
102
76
1,789
Net book value at 31 March 2013
2,166
44
159
-
2,369

## Notes To The Departmental Accounts 7 Intangible Assets 2012-13

Information 
Technology
Software 
Licenses
Website 
Costs
Development 
Expenditure
Total
£000
£000
£000
£000
£000
Cost or valuation
At 1 April 2012
7,637
1,261
265
93
9,256
Additions
-
37
-
-
37
Disposals
-
(312)
-
-
(312)
Write-back
(94)
75
-
-
(19)
Reclassifications
-
-
93
(93)
-
At 31 March 2013
7,543
1,061
358
-
8,962
Amortisation
At 1 April 2012
4,753
1,224
156
-
6,133
Charged in year
643
105
43
-
791
Disposals
-
(312)
-
-
(312)
Write-back
(19)
-
-
-
(19)
Reclassifications
-
-
-
-
-
At 31 March 2013
5,377
1,017
199
-
6,593
Net book value at 31 March 2013
2,166
44
159
-
2,369
Net book value at 31 March 2012
2,884
37
109
93
3,123

## Reconciliation Of Cash Flows To Intangible Asset Additions

| 2013-14                                    | 2012-13   |
|--------------------------------------------|-----------|
| £000                                       | £000      |
| Total intangible asset additions           | 160       |
| Opening intangible asset accrual           | -         |
| Closing intangible asset accrual           | -         |
| Cash flows for intangible assets additions | 160       |

## Notes To The Departmental Accounts 8. Capital Commitments And Other Commitments 8.1 Capital Commitments The Department Has No Contracted Capital Commitments (2012-13 £Nil) 8.2 Commitments Under Leases

8.2.1 OPERATING LEASES
Total future minimum lease payments under operating leases are given in the table below, for each of the following periods.


| 2013-14                                       | 2012-13   |
|-----------------------------------------------|-----------|
| £000                                          | £000      |
| Obligations under operating leases comprise:  |           |
| Buildings:                                    |           |
| Not later than 1 year                         | 1,771     |
| Later than 1 year and not later than 5 years  | 3,541     |
| Later than 5 years                            | -         |
| 5,312                                         | 4,926     |
| Other:                                        |           |
| Not later than 1 year                         | 74        |
| Later than 1 year and not later  than 5 years | 187       |
| Later than 5 years                            | -         |
| 261                                           | 336       |

The SFO entered into a Memorandum of Terms of Occupation (MOTO) with the Department for Culture, Media and Sport for use and occupy space at 2-4 Cockspur Street from 1st October 2012 to 25 March 2017. The SFO entered into one five year contract on 27 November 2012 for the provision of reprographic equipment and a further two on 1st December 2012.

## 9 Other Financial Commitments

The Department has not entered into any non-cancellable contracts which are not leases, PFI contracts or other service concession arrangements.  
size. The majority of financial instruments relate to contracts for non-financial items in line with the expected purchase and usage requirements and the Department are therefore not exposed to significant credit, liquidity or market risk.

## 10 Financial Instruments

The Department has very limited powers to borrow or invest surplus funds. Financial assets and liabilities are generated by day-to-day operational activities and are not held to change the risks facing the entities in undertaking its activities.

As the cash requirements of the Department are met through the Estimates process, financial instruments play a more limited role in creating risk than would apply to a non-public sector body of a similar 

## Notes To The Departmental Accounts 11 Cash And Cash Equivalents

| 2013-14                                          | 2012-13   |
|--------------------------------------------------|-----------|
| £000                                             | £000      |
| Balance at 1 April                               | 1,486     |
| Net change in cash and cash equivalent balances  | (827)     |
| Balance at 31 March                              | 659       |
| The following balances at 31 March were held at: |           |
| Government Banking Service                       | 659       |
| Commercial banks and cash in hand                | -         |
| Balance at 31 March                              | 659       |

## 12 Trade Receivables And Other Current Assets 12 (A)	 Analysis By Type

| 2013-14                              | 2012-13   |
|--------------------------------------|-----------|
| £000                                 | £000      |
| Amounts falling due within one year: |           |
| VAT receivable                       | 29        |
| Deposits and advances                | 146       |
| Other receivables                    | 37        |
| 12                                   |           |
| Prepayments and accrued income       | 646       |
| Costs awarded to the SFO             | 349       |
| Provision for bad and doubtful debt  | (47)      |
| 1,160                                | 1,439     |
| 2013-14                                       | 2012-13   |
|-----------------------------------------------|-----------|
| £000                                          | £000      |
| Amounts falling due after more than one year: |           |
| Costs awarded to the SFO                      |           |
| 35                                            | 8         |

## 12 (B)	 Intra-Government Balances

 
Amounts falling due 
within one year
Amounts falling due 
after more than one 
year
31 March 
2014
31 March 
2013
31 March 
2014
31 March 
2013
£000
£000
£000
£000
Balances with other Central Government bodies
33
437
-
-
Balances with bodies external to government
1,127
1,002
35
8
Total
1,160
1,439
35
8

## 13 Trade Payables And Other Current Liabilities 13 (A)	 Analysis By Type

| 2013-14                                                                        | 2012-13   |
|--------------------------------------------------------------------------------|-----------|
| £000                                                                           | £000      |
| Amounts falling due within one year:                                           |           |
| VAT Creditor                                                                   | -         |
| Trade payables                                                                 | 344       |
| Accruals and deferred income                                                   | 3,118     |
| 3,069                                                                          |           |
| Pension providers                                                              | -         |
| Non current asset accruals                                                     | 97        |
| Amounts issued from the Consolidated Fund for supply but not spent at year end | 659       |
| Consolidated Fund extra receipts due to be paid to the Consolidated Fund:      |           |
| Received                                                                       | -         |
| Receivable                                                                     | -         |
| -                                                                              |           |
| 4,218                                                                          | 5,372     |

## 13 (B)	 Intra-Government Balances

 
Amounts falling due 
within one year
Amounts falling due 
after more than one 
year
31 March 
2014
31 March 
2013
31 March 
2014
31 March 
2013
£000
£000
£000
£000
Balances with other Central Government bodies
564
1,108
-
-
Balances with bodies external to government
3,654
4,264
-
-
Total
4,218
5,372
-
-

## Notes To The Departmental Accounts 14. Provisions For Liabilities And Charges

Early departure 
costs
Legal Claims
Leasehold property 
dilapidations
Total
£000
£000
£000
£000
Balance at 1 April 2013
739
466
57
1,262
Provided / (Released)  in the year
80
336
27
443
Provisions utilised in the year
(332)
(447)
-
(779)
Balance at 31 March 2014
487
355
84
926
Amounts falling due within one year
202
355
-
557
Amounts falling due after one year
285
-
84
369
Total
487
355
84
926
Early departure 
costs
Legal Claims
Leasehold property 
dilapidations
Total
£000
£000
£000
£000
Balance at 1 April 2012
886
397
-
1,283
Provided / (Released)  in the year
124
69
57
250
Provisions utilised in the year
(271)
-
-
(271)
Balance at 31 March 2013
739
466
57
1,262
Amounts falling due within one year
 603
466
-
1,069
Amounts falling due after one year
 136
-
57
193
Total
739
466
57
1,262

## 14.2 Leasehold Property Dilapidations 14.1 Early Departure Costs

The obligations under the SFO's property leases require the properties to be returned to the landlords in an appropriate condition. A provision has, therefore, been established for the estimated costs of restoring the properties from use for SFO purposes to a state specified within the property leases. The property leases expire in March 2017.

## 14.3 Legal Claims

The Department 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 Department provides for this in full when the early retirement programme becomes binding by establishing a provision for the estimated payments, discounted by the Pensions discount rate of 2.35 per cent (2.35 per cent 2012- 13) in real terms when material. It is expected that early departure payments will be incurred through to 2017-18.

The legal costs provision reflects all known legal claims where legal advice indicates that it is more than 50 percent probable that the claim will be successful and the amount of the claim can be reliably estimated. Expenditure on legal claims is likely to be incurred within one year.

## Notes To The Departmental Accounts 15 Contingent Liabilities Disclosed Under Ias37

The SFO has contingent liabilities where the possibility of the liability crystallising is judged to be possible.  Unless otherwise stated, the quantum of the liability can either not be determined with reasonable certainty or to quantify it would jeopardise the outcome of the case. Following a successful judicial review in 2012 of certain actions taken by the SFO in 2011, Vincent and Robert Tchenguiz and various business entities associated with them ("the claimants") have brought civil proceedings against the SFO in the Commercial Court with a view to obtaining substantial damages. The claimants are seeking approximately £250 million to £300 million by way of damages to cover losses they say were caused by a variety of torts allegedly committed by the SFO during its criminal investigation into the collapse of the Icelandic bank, Kaupthing hf. The SFO denies all liability and is working closely with a firm of City solicitors, Slaughter & May, and with the Treasury Solicitor's Department and a team of experienced counsel, to defend these claims. The trial on all disputed issues is currently scheduled to begin in October 2014. The SFO continues to incur considerable costs in preparation for this trial, and, even if the current trial date is maintained, the SFO will in all likelihood continue to incur considerable costs into 2015. In June 2013 the SFO reported a data loss to the Information Commissioner's Office (ICO). The ICO conducted a review of the SFO's response to this incident in late May 2014. 

## 16 Contingent Liabilities Not Required To Be Disclosed Under Ias 37 But Included For Parliamentary Reporting And Accountability Purposes

16 (A)	 QUANTIFIABLE
The SFO has a legacy Proceeds of Crime enforcement case that relates to a high value complex confiscation order.  By order of the court an Enforcement Receiver (ER) was appointed.  The assets which were subject to the enforcement receivership were held by a number of corporate entities and spread across a number of jurisdictions. Some recoveries were made but activity slowed due to multi-jurisdictional issues.  In 2011 the matter was reviewed by senior management at the SFO who discovered that an indemnity had been provided to the ER. The indemnity was to reflect the complexity of the appointment and the fact that costs may be significant.  No internal authorisation for the indemnity could be identified.  The sum of the indemnity was £400k.   Upon identifying that an indemnity had been granted the ER was informed that the indemnity would be withdrawn as soon as the current outstanding fees had been addressed.  However since that time no funds have been recovered.  It is anticipated that a significant sum of money will be recovered in the early part of the 2014-15 financial year.  Upon receipt of the recoveries the SFO will review the outstanding fees and confirm the discharge of the indemnity and the ER.  The fees, which the SFO believes to be high, will be subject to a costs assessment if required.  It is believed that there will be no need to call upon the indemnity.  A further similar case exists with a maximum potential exposure of £5k. The chances of having to meet this indemnity in full or part are considered to be remote.  It is now standard operational practice not to issue indemnities in ER appointments.

## Notes To The Departmental Accounts 17 Losses And Special Payments

 

17 (A)	 LOSSES STATEMENT
There were no losses during the period which in aggregate exceeded £300,000
17 (B)	 SPECIAL PAYMENTS
There were no special payments during the period which in aggregate exceeded £300,000

## 18 Related-Party Transactions

The SFO has had a small number of transactions with other government departments and central government bodies.

## 19 Third Party Assets

The Department manages a small number of sterling interest-bearing accounts containing seized monies. These are not departmental assets but are held as part of the Department's law enforcement activities and, as such, do not form part of these accounts. Once legal proceedings have been completed any seized cash is forfeited to the Home Office, confiscated by the court or, if the defendant is found not guilty, returned. The assets held at the reporting date to which it was practical to ascribe monetary values comprised monetary assets such as bank balances and monies on deposit.  The balance held at 31 March 2014 was £310k (12-13 £367k).

## 20 Events After The Reporting Period

There are no additional reportable events not already covered elsewhere in these accounts. The financial statements were authorised for issue on the date they were certified by the Comptroller and Auditor General. 

## Greening Government Commitments

The Serious Fraud Office is committed to government policy to improve sustainability and is working towards meeting the Greening Government Commitment (GGC) targets which started on 1 April 2011 with a baseline period of 2009-10. The GGC targets aim to reduce environmental impact by 2015, with a series of measures to:

- Reduce greenhouse gas emissions from a 09/10 baseline from the whole estate and business related transport: - Reduce waste generated by 25% from a 09/10 baseline: - Reduce water consumption from a 09/10 baseline: - Ensure procurement of sustainable and efficient products whilst reducing the impact of the supply  
	 chain.

## The Sfo'S Results For 2013-14

Area
2013-14 Performance
Greenhouse Gas emissions (Scopes1, 2 & 3 business travel including air and rail travel)
644 (tCO2e)
1,031 (tCO2e)
Estate Energy
Consumption
1,442k kWh
-
Expenditure
£161K
-
Estate Waste
Amount
50.5 tonnes
63 tonnes
Expenditure
£13K
-
Estate Water
Consumption
2,054m3
4,467m3
Expenditure
£18k
-

The results show that we are now ahead of all our targets. This is principally due to our estate rationalisation with a move to new premises in 2012 which significantly reduced our accommodation footprint. Moreover the new office space is more efficient in terms of its utilisation of energy, waste and water. It is anticipated that we will exceed the GGC targets in 2015 in all areas.

## Greenhouse Gas Emissions

There are three different classifications of greenhouse emissions, known as Scopes:
Scope 1: Direct emissions occurring from sources owned or controlled by the department, for example, emissions from combustible boilers and from fleet vehicles.

Scope 2: Indirect emissions occurring from electricity consumed which is supplied by another party.

Scope 3: Other indirect emissions. All other emissions which occur as a consequence of our activity but which are not owned or controlled by the department. For example emissions as a result of staff travel on public transport, taxis or airline flights. 

Actual
Target

## Sustainability Report Greenhouse Gas Emissions

| Greenhouse Gas Emissions                | 2009-10   | 2010-11   | 2011-12   | 2012-13   | 2013-14   |
|-----------------------------------------|-----------|-----------|-----------|-----------|-----------|
| Total Gross Emissions for Scopes 1 & 2  | 1,409     | 1,281     | 1,121     | 901       | 537       |
| Total Net Emission for Scopes 1 & 2     | 1,409     | 1,281     | 1,121     | 901       | 537       |
| Gross Emissions Scope 3 Business Travel | 209       | 140       | 70        | 94        | 67        |
| Non-financial                           |           |           |           |           |           |
| indicators (tCO                         |           |           |           |           |           |
| 2                                       |           |           |           |           |           |
| e)                                      |           |           |           |           |           |
| Other Scope 3 Emissions Measured        | 93        | 88        | 82        | 59        | 40        |
| Electricity: Non Renewable              | 2,220     | 2,100     | 2,002     | 1,414     | 1041      |
| Electricity: Renewable                  | 166       | 154       | 146       | 72        | 0         |
| Related Energy                          |           |           |           |           |           |
| Consumption                             |           |           |           |           |           |
| (kWh,000s)                              |           |           |           |           |           |
| Gas                                     | 1,254     | 1,014     | 813       | 795       | 401       |
| Expenditure on Energy                   | 309       | 218       | 215       | 218       |           |
| CRC Licence Expenditure                 | 0         | 4         | 3         | 0.07      | 0         |
| Financial                               |           |           |           |           |           |
| Indicators (£k)                         |           |           |           |           |           |
| Expenditure on Accredited Offsets       | 0         | 0         | 0         | 0         | 0         |
| Expenditure on Official Business Travel | 303       | 328       | 130       | 115       | 154       |

The target is to reduce greenhouse gas emissions from a 2009-10 baseline by 25% from the whole estate and business related transport by 2014-15. The move to smaller accommodation and use of upgraded IT equipment has led to a 61% reduction in emissions in 2013-14 against the 2009-10 baseline. 

## Sustainability Report Waste Waste Volumes Financial Year

|                               | 2009-10         |   2010-11 |   2011-12 |   2012-13 |   2013-14 |
|-------------------------------|-----------------|-----------|-----------|-----------|-----------|
| Landfill                      | 40              |       38  |       22  |        35 |        36 |
| Weight (t)                    | Reused/Recycled |       39  |       44  |       39  |        82 |
| Non                           |                 |           |           |           |           |
| Hazardous                     |                 |           |           |           |           |
| Waste                         |                 |           |           |           |           |
| Incinerated/Energy from waste | 0               |        0  |        6  |        19 |         0 |
| Landfill                      | 18              |       15  |       11  |        12 |        11 |
| Cost (£k)                     | Reused/Recycled |        31 |       20  |       19  |        32 |
| Non                           |                 |           |           |           |           |
| Hazardous                     |                 |           |           |           |           |
| Waste                         |                 |           |           |           |           |
| Incinerated/Energy from waste | 0               |        0  |        0  |         0 |        0  |

The target is to reduce waste generated by 25% from a 2009-10 baseline by 2014-15. Our move to new premises did, of course, generate considerable amounts of waste which accounts for the poor performance in 2012-13. However following our move we now operate in a flexible working environment where waste bins are not permitted under each desk allowing waste to be collected at central points on each floor encouraging recycling and an overall reduction in the volume of waste. The SFO continues to utilise the "Closed Loop Procedure" for purchasing paper and any IT equipment is disposed of under the WEEE Directive.

## Sustainability Report Water Water Actuals

FINANCIAL YEAR
Finite Resource Consumption
2009-10
2010-11
2011-12
2012-13
2013-14
Non-financial indicators (m3)
Water Consumption
4,467
7,187
7,476
 5,747
2,054
Financial Indicators (£k)
Water Supply Costs
3
5
6
6
 18

- Costs shown for 2013-14 cover both water and sewerage charges. It is not possible split these costs further.

## Domestic Flights

The target is to reduce commercial air flights in the UK by 20%. The SFO is currently ahead of this target and the indications are that this will continue. The number of domestic flights taken by SFO staff on official business has fallen from the 2009-10 baseline of 99 to 20 for 2013-14 against a target of 85.  
The Greening Government target is to ensure that water consumption is reduced over the period 2009-10 to 2014-15 although no specific target has been set for this, unlike waste and greenhouse gas emissions. The move to much smaller more efficient premises has had an huge impact on water consumption. However this should be viewed in the context of the fact that, on our previous estate, substantial works were undertaken on the heating and cooling plant which required extensive use of water for the flushing of the system which explains the high volumes used in 2010-11 and 2011-12 compared to the 2009-10 baseline.

## Procurement Paper Use

The SFO makes use of mandated centralised framework contracts where appropriate, that embed the Government Buying Standards (GBS) within them. However, if there are no centralised contracts available then any contract entered into will meet the GBS requirements.

Paper use in the SFO has reduced on the 2009- 10 baseline figures (14,791 A4 Reams) to 5,397 A4 Reams for 2013-14. This is a 63% reduction on baseline and due to the use of "paperless" office technology such as "autonomy" (digital case management system) and the electronic presentation of evidence.

## Sustainability Report Governance

The Solicitor General represents the Law Officers' Departments (LODs) on Sustainable Development matters. The minister is supported by the LOD Sustainable Development Steering Group chaired by the Crown Prosecution Service (CPS) Finance Director. The SFO is a member of this group. The CPS is the Secretariat to this Group and represents the LODs on any relevant Sustainable Development committees. Our results against the GGC targets will be reported annually

## Transparency Commitments

The following areas applied to the SFO in 2013-14:-
- Sustainable construction and People Minor works were carried out during a recent restacking project at Cockspur Street. This work was necessary to organise the floor plates for our business operation. The work did not meet the criteria needed for a Building Research Establishment (BRE) Environmental Assessment Method for buildings (BREEAM) however the work was completed to the "very good" standard by the contractors.

## Notes:

1.	Figures have been presented using the 2013-14 FREM guidance and Defra conversion figures. 2.	Estimates have been used in some instances where complete data was not available from suppliers or service providers. 3.	Electricity figures are only for electricity consumed by the SFO.  As the minor occupier they do not attempt to 
 
	 reflect any charges made through the service charge.

## Notes