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Annual Report and Accounts 2000-2001 |
The Radiocommunications Agency is responsible for most non-military radio spectrum matters in the UK. It was established as an Executive Agency of the Department of Trade and Industry (DTI) in April 1990. The Agency's objectives are discussed in the preceding pages. The Agency is funded through the DTI Vote (Class IX Vote 1). HM Treasury's Accounts Direction dated 30 May 2001, under the provisions of Section 5(1) of the Exchequer and Audit Departments Act 1921 requires the Agency to comply with the accounting principles and disclosure requirements of the edition of the Resource Accounting Manual which is in force for the financial year for which the accounts are prepared. These accounts comply with the Accounts Direction.
The surplus for the year amounted to £58.8M (1999/2000: £28.1M). Details of the amount surrendered to the DTI and other movements on the General Fund are shown in note 12.
The first auctions of spectrum licences were completed in the year. The auction of five Third Generation Mobile Services licences raised £22,477,400,000. The licences are for a period of 20 years. The auction proceeds have been surrendered to the Consolidated Fund, as reported in the Cash Flow Statement. Only part of the licence fees have been counted as income, in accordance with the Income Recognition policy at Note 1.(c). See notes 16 and 17 for more information. As a consequence, the Balance Sheet includes for the first time an amount of £48.1M for Deferred Income with the result that the value of Taxpayers' Equity has become negative. The negative value of Taxpayers' Equity does not affect the Agency's viability, solvency or future funding arrangements.
An auction for Broadband Fixed Wireless Access at 28 GHz raised £38,160,000 for 16 licences. There were no successful bidders for the remaining 26 licences, which are expected to be offered again for issue in 2001/02. The fees have been accounted for in the same manner as the Third Generation Mobile Services licences. See notes 1. (c), 16 and 17 for more information.
The Agency achieved its key financial target for the year, as stated in note 3. Performance against other measures is listed in Objective 2 of the Annual Report.
The activities of the Agency and the development of its business are reviewed in the Annual Report.
In the light of the growing demands on spectrum use, and the opportunities presented by the proposed new regulatory framework and greater use of market based tools, the Chancellor of the Exchequer and the Secretary of State for Trade and Industry commissioned an independent review of the principles which should govern spectrum management to ensure efficient use of spectrum. The review, lead by Professor Martin Cave, will be carried out in 2001/02.
The joint venture company, Radio Spectrum International Consulting Ltd known as RSI, traded profitably in its business of providing the resources required to meet the Agency's IT needs. RSI is also trying to build on the Agency's international connections by providing consultancy services to overseas administrations. See note 8 for details. The Agency's share of RSI's dividend for the year ended 31 December 2000 was £228,000.
There are no other special factors that affect these accounts.
The changes in fixed assets are detailed in note 7 to the accounts.
The Agency continues to invest heavily in IT to improve its services to customers, and to contribute to the government's e-commerce targets. There was also substantial investment in new equipment to monitor spectrum usage. Two of the Agency's outlying properties were significantly improved and refurbished.
The Agency's management is committed to modernising business processes in order to improve efficiency and customer service, in line with the objectives of the Modernising Government initiative. Levels of expenditure on IT services and IT investment are expected to increase in support of this commitment.
In response to the report of the Independent Expert Group on Mobile Phones, known as the Stewart Report, the Agency will carry out an audit of base stations to assess whether emissions are exceeding approved guidelines. This is a new activity for the Agency.
The Government published a White Paper "A New Future for Communications" in December 2000. This envisages the creation of a new regulator which will encompass the Agency's present responsibilities. The new arrangements are not expected to be operational before 2003.
It is anticipated that demand for spectrum will continue to be buoyant, and that in future years there will be an increase in the use of competitions to allot licences.
The Chief Executive is the Accounting Officer responsible for the day-to-day running of the Agency. He is assisted by the Agency's Management Board, which comprises the Chief Executive and Directors responsible for each Executive as follows:
| David Hendon | Chief Executive |
| Mike Goddard | Director - International & Spectrum Policy |
| Hazel Canter | Director - Spectrum Services |
| Barry Maxwell | Director - Customer Services |
| Chris de Grouchy | Director - Corporate Services & Facilities |
The Chief Executive and Directors are appointed in terms of the Civil Service Management Code. Information on their remuneration is given in Note 4.
The Agency's effectiveness and efficiency in performing its functions are monitored by the Steering Board, whose members are appointed by the Minister. The membership of the Agency's Steering Board since 1 April 2000 has been as follows:
Chairman:
Mr Jonathan Spencer
Director General,
Business Competitiveness
Group, DTI
Members:
Ms Jane Tozer
Managing Director,
JET Consulting
Mr
Bill Dennay
Consultant,
Quantel
Mr
David Edmonds
Director
General,
Office of Telecommunications
(OFTEL)
Mr
Rob Meakin
Director,
Marconi Group
Mr
David Hendon
Chief Executive,
Radiocommunications
Agency
Mr
William Macintyre CB
Director,
Communications and
Information Industries Directorate,
DTI
Dr
Philippa Lloyd
Director,
Resource Management,
DTI (from January
2001)
Mr
Hugh Savill
Director,
Resource Management,
DTI (until
January 2001)
Members of the Steering Board who are not civil servants are offered fees of £4,000 per annum, and reimbursement of reasonable travelling expenses. Members who are civil servants do not receive fees.
The Agency aims to pay valid invoices within 30 days of receipt or as agreed with suppliers. In 2000/01, this was achieved for 100% of invoices. No payments were made under the Late Payment of Commercial Debt (Interest) Act 1998.
The Agency's policy is to promote equal opportunity for all, regardless of disability, subject only to capability and suitability for the post in question. Wherever possible, every effort will be made to ensure that staff stay in their current post should they become disabled as an employee in the Agency; alternatively wherever possible, they will be provided with an alternative post which makes use of their expertise. The Agency is also working towards being accredited with the Disability Two Ticks Symbol.
The Agency is committed to the principle of equality of opportunity. Being fair to people is at the heart of that commitment. The aim is to ensure that all employees and job applicants are treated equally regardless of their gender, marital status, race, colour, ethnic or national origin, nationality, sexuality, disability, age, religion, employment status or trade union activities. The Chief Executive has accepted the Commission for Racial Equality's Leadership Challenge. Our policy is in line with the DTI policy and builds on the statutory obligations of employers under the Sex Discrimination Act 1975 and the Race Relations Act 1976 and the Disability Discrimination Act 1995. The Agency has a programme of action to implement this policy, which is described in the Annual Report.
The Agency encourages teamwork and communication between staff at all levels in the organisation. Business and other issues which may be of interest or concern are brought to the attention of staff at various levels in a variety of ways.
There is a continuing dialogue, both formal and informal, with trade union representatives.
The Agency is committed to training and developing its staff as an integral part of achieving business success and to build on its re-accreditation to the Investors in People standard in June 2000. Details of current development programmes are given in the Annual Report.
These accounts have been audited by the Comptroller and Auditor General.
David Hendon
Chief Executive
2 July 2001
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