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Annual Report & Accounts 1997-98 |
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Annual Report & Accounts 1997-98 |
FOREWORD TO THE ACCOUNTS
History and background
The Radiocommunications Agency is responsible for most civil radio matters in the UK. It was established as an Executive Agency of the Department of Trade and Industry (DTI) in April 1990. The Agency is funded through the DTI Vote (Class IV Vote 1). HM Treasury issued an Accounts Direction on 21 July 1993 under the provisions of Section 5 of the 1921 Exchequer and Audit Departments Act requiring the Agency to produce commercial-style accounts. These accounts have been audited by the Comptroller and Auditor General.
Results and Appropriations
The surplus for the year amounted to £1,689,032 (1996/97: £2,020,524) after charging net costs (after recoveries relating to major uninsured losses) of £303,000 (1996/97: £161,000) resulting from the bombing near the headquarters in London Docklands. Details of the amount surrendered to the DTI and other movements on the general fund are shown in note 12.
Key Performance Measure
The Agency's key performance measure is its ability to recover the full costs of its activities from customers. As reported above, income exceeded full costs for the year, generating a surplus of £1,689,032 (1996/97: £2,020,524)
Review of activities
The activities of the Agency and the development of its business are reviewed in the preceding pages.
Demand for radio spectrum continues to accelerate with double-digit growth rates in some sectors. Spectrum is the raw material for one of the most dynamic and successful sectors of the economy and the Agency needs to develop innovatory spectrum management methods if it is to continue to meet rising demand. The passing during the year of the Wireless Telegraphy Act 1998, the first substantive spectrum management legislation for nearly 50 years and the first reform of spectrum pricing for nearly a century, will provide new market-based spectrum management tools. The Agency has begun the process of using these to make spectrum available for innovation and growth.
The Agency has also continued to modernise its systems to improve customer service. The joint venture company, Radio Spectrum International Consulting Ltd, will provide a new approach to financing the necessary investment in IT systems. Substantial progress was made in various IT projects, such as RULES and ALPACA, and the joint venture will be used to bring these to completion. The Agency has also continued to review and revise its business processes and has instituted a programme of cultural and structural change to make itself more customer-focused.
There are no other special factors that affect these accounts.
Fixed assets
The changes in fixed assets are detailed in Note 8 to the accounts.
Research and Development
The Agency's programme of research and development covers a wide area of activity and responsibility within the Agency. It is centred on the fundamentals of radio propagation and support for the Agency's standardisation and specification programme. Research is intended both to extend the usable spectrum, as new technologies develop, and to make greater use of existing spectrum through sharing and more efficient modulation / coding techniques.
Future developments
The Agency is undergoing an ambitious programme of fundamental reform in many areas, including spectrum pricing, business processes, IT systems, personnel and relocation. It is likely to be necessary to prioritise resources towards delivering the processes and systems necessary to implement spectrum pricing from the 1998/99 financial year onwards. This includes completion of the RULES project. The joint venture company will provide new avenues to make the necessary investment in IT systems and will also provide opportunities to exploit these commercially. Some projects may need to be delayed by constraints on the Agency's limited finance and manpower resources. Subject to this, the Agency will continue to develop its business as outlined in preceding pages with a view to realising its Vision 2000.
Steering Board members
The membership of the Agency's Steering Board since 1 April 1997 has been as follows:
Chairman
Mr Alastair Macdonald CB
Director General, Industry, DTIMembers
Dr John Thynne CB
Director and Executive Council Member,
Newbridge Networks CorporationMr Bill Dennay
Consultant, QuantelDr Geoff Robinson
Director of Technology, IBM UK Ltd
(Resigned 25 August 1997)Mr Don Cruickshank
Director General, Office of Telecommunications (OFTEL)
(Resigned 31 March 1998)Mr David Edmonds
Director General, Office of Telecommunications (OFTEL)
(Appointed 30 April 1998)Mr Martin Roberts
Director, Finance and Resource Management, DTI
(Resigned 16 January 1998)Mr Jonathan Phillips
Director, Finance and Resource Management, DTI
(Appointed 19 January 1998)Mr William Macintyre CB
Director, Communications and Information Industries Directorate, DTIMr Jim Norton
Chief Executive, Radiocommunications Agency
(Resigned 3 May 1998)Mr David Hendon
Chief Executive, Radiocommunications Agency
(Appointed 4 May 1998)
Supplier payment policy
In line with the CBI code and the Government's commitment on prompt payment of bills, the Agency aims to pay valid invoices within 30 days of receipt or as agreed with suppliers. In 1997/98, this was achieved for 96.1% of invoices.
Disabled persons
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, staff who become disabled during employment are provided with an alternative post which makes use of their expertise, should this be necessary.
Employee involvement
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.
As part of the Agency's key commitment to staff development and training, a formal commitment to achieve Investors in People accreditation was made on 20 August 1996. The Agency is making good progress towards the goal of accreditation in January 1999.
Year 2000 compliance
Procedures are in hand to minimise the possibility of any system failing in consequence of the year 2000 date change. These procedures are in line with the guidance published by The Central Computer and Telecommunications Agency.
The staff and consultancy costs, estimated at £1m, have been included in the Agency's various IT projects. There is no requirement to purchase additional hardware or software.
David Hendon
Chief Executive
7 July 1998
Statement of Chief Executive's
Responsibilities
Under Section 5 of the Exchequer and Audit Departments Act 1921, the Treasury has directed the Radiocommunications Agency to prepare a statement of accounts for each financial year in the form and on the basis set out in the accounts direction (see Annex)of these financial statements. The accounts are prepared on an accruals basis and must give a true and fair view of the Agency's state of affairs at the year end and of its income and expenditure, total recognised gains and losses and cash flows for the financial year.
In preparing the accounts, the Agency is required to:
The Accounting Officer for the Department of Trade and Industry has appointed the Chief Executive of the Radiocommunications Agency as the Accounting Officer for the Agency. His relevant responsibilities as Accounting Officer, including responsibility for the propriety and regularity of the public finances and for the keeping of proper records, are set out in the Accounting Officers' Memorandum, issued by the Treasury and published in Government Accounting.
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