Supporting the agricultural group – Annual Report and Accounts 2022-23 (HTML model)

Chief Executive Officer’s assertion

2022-23, was an eventful and profitable yr for the Rural Payments Agency (RPA). We confronted many challenges to ship new initiatives in addition to striving to enhance efficiency on current schemes and funds, in opposition to the backdrop of some risky exterior occasions. Our individuals as soon as once more rose to the problem and, because of their continued laborious work, ardour and professionalism have ensured 2022-23 was a yr of serious achievements of which I’m proud.

We as soon as once more reported wonderful fee efficiency for schemes and grants together with the continuing Basic Payment Scheme and a reinvigorated Countryside Stewardship supply being taken up by extra farmers and landowners than ever. We have assisted farmers with enhancements to animal well being and welfare, productiveness and innovation in addition to lowering environmental influence. Significantly, we’ve begun selling additional environmental advantages to assist nature by means of the profitable launch of the primary spherical of the Sustainable Farming Incentive.

As we moved away from the pandemic, our clients confronted additional vital challenges as a result of cost-of-living scenario. It was vital we recognised these challenges and assisted the agricultural group with the rising prices they confronted.

Over the previous yr, we had been in a position to launch early funds from the Basic Payment Scheme (BPS) scheme, with the overwhelming majority of our 84,000 BPS clients receiving advance funds in July 2022. As a part of our 5 year Strategy and Agricultural Transition Plan, we had been eager to make these modifications and innovate throughout our schemes, and this was a practical technique to make an actual distinction to our clients by easing their money movement.

We launched the Lump Sum Exit Scheme, which is a part of the Agricultural Transition technique, enabling farmers to obtain a lump sum fee instead of direct funds. As nicely as permitting some farmers to retire or depart the trade, it’ll open alternatives for brand new farmers and farmers throughout the trade trying to develop.

Our Farming Equipment and Technology Fund opened for the primary time in early 2022 and proved extraordinarily well-liked receiving greater than 5,000 purposes and paying farmers over £32.7 million in 2022-23. We are additionally investing in animal welfare and agricultural sustainability with the Farming Equipment and Technology Fund which incorporates our new Annual Health and Welfare Offer which has been designed to assist farmers to put money into their farms as a part of the broader Defra Animal Health and Welfare Pathway. Our Animal Health and Welfare capital grants will work alongside the Annual Health and Welfare evaluate, which is able to facilitate vet visits. The grants will deal with lowering environmental stress and enhancing biosecurity, while Productivity and Slurry grants deal with enhancing agricultural sustainability and horticultural and forestry productiveness, serving to farmers use much less inputs, scale back emissions and reduce waste.

Further grants had been opened in April 2023, with the opening of the Water Management Grant Round 2. This will present capital grant funding to assist arable or horticultural businesses in England to use for capital gadgets to enhance farm productiveness by means of extra environment friendly use of water for irrigation, and to safe water provides for crop irrigation.

In June 2022, we met a major milestone with the launch of the brand new Sustainable Farming Incentive (SFI) scheme, which enabled any BPS-eligible farmers to use straight for SFI on-line.

I used to be immensely proud when our SFI undertaking workforce received the Digital Project of the Year on the Government Project Delivery Awards held in March 2023, which was a fruits of laborious work throughout the whole workforce.

As we glance to the longer term, digitisation and automation are areas the place we need to enhance to assist additional strides on the customer support, we offer to make sure the very best expertise for our clients. An automated course of for the loft pigeon on-line registration service, which permits us to offer smarter and extra environment friendly service to clients registering loft pigeons was launched in July 2022. We additionally applied the dwell net chat pilot for British Cattle Movement Service (BCMS) and the Pet Travel helpline. I’m excited with the probabilities digitisation and automation can supply us within the coming years as we proceed to enhance the expertise we offer for our clients.

Behind the figures, nonetheless, it’s our clients that we ship for and who stay on the coronary heart of why we’re right here. As we proceed our journey in the direction of being a customer support supplier exemplar, which we’ve set out in RPA’s 5 yr Strategy, we’ve been focussing on additional building the abilities and functionality throughout the RPA to ship customer support excellence. Just this yr, we had a report variety of RPA colleagues nominated for the 2023 Operational Delivery Profession (ODP) Awards.

The high quality of our buyer excellence coaching has been recognised by the core division with it, subsequently, being rolled out throughout the group as a part of our dedication to a wonderful Operational Delivery Profession.

The RPA has continued to progress on the web zero commitments set out within the 5 yr Strategy. We have made wonderful progress in the direction of the Greening Government Commitments for decarbonising our fleet of lease automobiles and comfortably met the goal for a minimum of 25% of our fleet to be Ultra Low Emission Vehicles (ULEV’s) by the top of 2022. Once automobiles on order are delivered in the direction of the top of this yr, over 55% of our fleet will likely be ULEVs, with over 20% electrical automobiles. We have labored carefully with Defra to additional develop Countryside Stewardship and SFI to encourage, allow and reward farmers and landowners for practising sustainable agricultural strategies which preserves our British countryside, and assist our rural areas in persevering with to be nice locations to dwell.

Our achievements over the previous yr present a superb foundation on which to build in the direction of our future, and the work we are going to do all through the remainder of 2023 and into 2024 is pivotal to this.

All the work we do is delivering on our function to assist agricultural and rural communities to create a greater place to dwell. We need the company to ship for our clients in a approach that’s wonderful while on the similar time offers an surroundings for our individuals to be the perfect they are often. Throughout 2023-2024, I’ll guarantee we’re specializing in these areas and that our individuals, and our clients are given alternatives to be concerned in serving to to proceed to enhance.

Paul Caldwell
Chief Executive and Accounting Officer
14 July 2023

Non-Executive Chair of the Agency Management Board Statement

As you will notice documented within the following pages, this final reporting yr has been a characteristically busy one.

As we enter the third yr of our 5 yr Strategy, we proceed to work in partnership with Defra group, and agricultural and rural communities to ship higher outcomes, and to create a greater place to dwell and work. There is way to be completed in making the transfer to England’s personal environmental land administration schemes, and, as we proceed to fastidiously handle this transition, we are going to maintain listening to our clients and attempt to enhance our service.

The significance of the funding we ship is unquestionable. We know that what we do and the way we do it touches upon almost each side of farming and rural group life. That is why delivering on customer support alongside Agricultural Transition is a key focus for us and has been a precedence this yr.

The impacts of the battle in Ukraine and cost of dwelling scenario have been deeply felt within the agricultural sector and we’ve sought to handle this by implementing new measures that not solely improved the movement of money to farmers but additionally gave them better certainty as to after they can be paid. This summer time, we issued Basic Payment Scheme recipients with a complicated fee and people collaborating in our new Sustainable Farming Incentive (SFI) scheme are actually being paid frequently and sometimes, fairly than having to attend for a single annual fee.

Thanks go to colleagues throughout the entire company who labored laborious all year long processing claims as shortly as attainable. It is their contribution that resulted within the company paying extra money to farmers than ever earlier than throughout December 2022 (the primary month of the farm fee window) and in 2022, we issued over £1 billion in respect of round 100,000 eligible claims.

We have continued to make progress in making our schemes extra accessible to farmers and rural businesses by making them less complicated to grasp, simpler to be utilized for and faster for us to course of. We launched a rolling utility window and a brand new on-line utility course of that permits farmers to use for SFI at a time that fits them greatest. Using the suggestions, we’ve gained by working in partnership with our clients, we are actually trying to apply this studying to enhance the present schemes our farmers have been transitioning to. We additionally launched new digital companies, significantly for brand new grants below our Farming Investment Fund, making it a lot simpler for rural businesses to use for funding to put money into new know-how, gear, and infrastructure. These are companies we are going to proceed to develop.

Our 5-year Strategy outlines our goal of being an exemplar organisation for delivering wonderful customer support. Our Improving Customer Experience (ICE) programme has been on the forefront of attaining these ambitions. It has up to now delivered a number of particular measures which we imagine will enhance our farming and rural clients’ expertise in coping with the Rural Payments Agency. Examples embody the introduction of dwell net chat; enhancements to our telephony companies and modifications to our contents on GOV.UK. These enhancements are making it a lot simpler and far faster for farmers to get the suitable recommendation and data after they want it.

On the bottom we launched a brand new supportive and partnership-based method to how we conduct on-farm checks. During the 7,965 visits our area officers carried out this yr, they had been in a position to present farmers with recommendation on find out how to get the perfect out of our schemes and signpost them to new alternatives and vital companies reminiscent of these round farming psychological well being.

Many of our area officers have taken half in first support coaching which permits them to be first responders to any incident that may happen throughout their go to to a area. This is only one instance of the initiatives we’re enterprise that we hope will affect the evolving and supportive relationship that we’ve, and proceed to develop, with the agricultural group.

Our individuals proceed to evolve of their work to serve our communities and to fulfil their very own contribution to surroundings sustainability and local weather management. Our volunteers on the Net Zero Working Group are difficult the company to lift its sport in sustainability and environmental influence. Through their encouragement, we’re decreasing our carbon footprint as outlined within the Chief Executive’s assertion, and by lowering the variety of printers at our websites, trialling Greener Stationery, and inspiring our individuals to finish the Defra group’s Carbon Literacy coaching programme.

Volunteering is a key a part of this progress with a number of RPA colleagues collaborating in a spread of initiatives from tree planting to litter choosing. These initiatives will assist to alter our behaviours, build our empathy, and embed sustainability in every thing that we do.

As a Board we’ve a variety of rural and farming expertise, and our conferences are almost all held at company places of work throughout England, fairly than in central London. In the final yr we’ve met in Newcastle and York, following earlier yr’s conferences in Carlisle and Workington, and upcoming conferences in Crewe and Exeter. It is vital to us that we get the possibility to fulfill with colleagues throughout the numerous totally different capabilities within the company and to listen to of their experiences, considerations, and alternatives. We are eager to place buyer expertise on the coronary heart of our resolution making and use these alternatives to go to farms throughout these board classes too to be taught in regards to the lived expertise within the area. Through this, coupled with visits to agricultural reveals, and assembly the farming group straight, we attempt to empathise with the problems which are confronted, and assist the company think about how they might handle them.

We have interaction frequently with the RPA management group in a single on one conferences, formal board conferences, and, through our annual technique days, and we encourage lateral considering centred round suggestions from rural and farming communities. To this finish, the Board and I wish to thank the breadth of the farming group, for sharing their suggestions brazenly and willingly, and for his or her persistence by means of the modifications of recent years. We thank Paul Caldwell, the company’s individuals, and our Defra companions as we collectively attempt for a greater future for British land and agriculture.

Elizabeth Passey
Non-Executive Chair
Rural Payments Agency Management Board
14 July 2023

Performance report

This part ought to allow you to perceive the aims, challenges and achievements of the Rural Payments Agency throughout the yr

Our function and our individuals

Who we’re

The Rural Payments Agency (RPA or the company) was created in 2001 as an Executive Agency of the Department for Environment, Food and Rural Affairs (Defra or the core division). We play an vital function in delivering the division’s meals and farming agenda by empowering agricultural and rural communities to create a greater place to dwell.

Our 5 yr Strategy units out our dedication to ship Agricultural Transition, assembly each buyer expectations and coverage wants and delivering environmental outcomes by means of a top quality service.

RPA has accountability for making direct support and rural growth funds of over £2 billion yearly to farmers and rural businesses in England. Our principal obligations embody:

• Operational supply of Environmental Land Management together with the Sustainable Farming Incentive, the evolution of Countryside Stewardship and new grant affords to assist make agriculture extra aggressive and fight local weather change.
• Support for farmers’ incomes as the previous Common Agricultural Policy Schemes such because the Basic Payment Scheme run down.
• Livestock identification and traceability by means of the British Cattle Movement Service (BCMS).
• An assurance programme which focuses on sustaining the best requirements of animal well being and welfare, meals high quality and environmental outcomes.
• The provision and integrity of English land information.
• A Customer Contact Centre offering a spread of companies on behalf of the Defra group.

Defra group technique

During 2020 to 2021, Cabinet Office and HM Treasury reformed the business planning and efficiency framework throughout all authorities departments. There is now a renewed deal with the significance of delivering and measuring real-world impacts throughout the departmental planning course of.

The Defra group Outcome Delivery Plan units out the essential real-world outcomes we search to realize as a bunch and the way we are going to measure them. It is structured round our 4 precedence outcomes for environmental enchancment, web zero emissions, floods and resilience, and agriculture, meals, fisheries, animal welfare and biosecurity, and a set of strategic enablers that goal to strengthen our capability and functionality.

RPA’s imaginative and prescient, function, and ambition

Our imaginative and prescient is what we wish to occur – as a part of the Defra group we’re right here to grab alternatives to form our future and assist make our nation an ideal place for dwelling. Our function is to ‘help agricultural and rural communities to create a better place to live’. Our schemes and merchandise present assist, and our companies are targeted on serving to financial development within the meals and farming trade. Our individuals work alongside associate organisations as a part of Defra’s Food, Farming and Biosecurity system to ship for our clients and stakeholders. Our values make clear our id and function a focus for our individuals to make sure we enact our ambitions. Our values are to be – Visible, Engaging, Respectful, Inclusive, Trusting, Accountable and Supportive.

Going concern assertion

The monetary statements are ready on a going concern foundation. The company is the one Common Agricultural Policy (CAP) accredited paying company in England and as such performs an vital function in delivering vital funds to the agricultural economic system and enhancing environmental outcomes. Now that the UK has left the EU, the UK authorities has dedicated to sustaining funding to the agricultural sector to match that which it could have obtained below Pillar 1 of the CAP for 2022, in addition to confirming that every one multi-year tasks agreed by the federal government earlier than November 2016. Consequently, all Pillar 1 and multi-year tasks have continued to stay totally funded put up our exit from the European Union.

The company expects to proceed to ship agricultural assist funds in keeping with Defra technique and authorities commitments; therefore the company considers the going concern foundation to be applicable and according to the Financial Reporting Manual (FReM) 2022-23, continuation of service precept.

Impact and administration of key dangers

The company’s Executive Team frequently assesses dangers confronted by RPA. Key dangers confronted by the company embody the efficient mitigation of fraud and error in scheme expenditure, guaranteeing the supply of a top quality service for our clients, and the supply of the company’s key scheme targets. The company is responding to the danger of fraud and error in scheme expenditure by initiating a spread of constant works that can present a extra thorough understanding of the fraud and error dangers, what’s inflicting these dangers and what different interventions and controls might be utilized to mitigate these dangers. Further particulars of dangers and their administration are set out within the Governance Statement beneath.

Highlights of the yr

RPA yr in numbers

• 83,017 BPS farmers paid £1.38bn this yr
• 31,700 CS agreements presently in place
• 6,882 ES agreements prolonged below new home laws
• 2,726 eligible agreements delivering environmental requirements below the brand new SFI scheme
• 42,000 import licences and export certificates issued
• £33.6m paid to three,182 rural businesses below Round 1 of FETF
• 99.5% cattle births, deaths & actions recorded inside deadlines
• 8,400 website visits carried out by our Field Officers
• 920,000 land parcels checked this yr
• 250,000 calls responded to by our Customer Contact Centre
• 37 native authorities took half in our new Fly Tipping Investment Grant scheme
• £14.5m to be issued to 610 farmers below our Lump Sum Exit scheme to permit them to go away the trade
• 3,000 individuals we engaged with at over 40 Agricultural reveals and occasions
• 776 members of our new Research and Insight Network Group
• 5,359 STAR awards of thanks issued to our individuals
• 7 RPA colleagues efficiently accomplished the primary yr of the cross-government Beyond Boundaries expertise programme
• 1,800 RPA colleagues have accomplished their buyer excellence coaching

Customers on the forefront

Richard Tagg
Whole herd @Ruralpay inspection,sorry go to as we speak! learn each ear tag verify each passport verify motion data every thing !! Always nerve racking however handed with flying colors went like clockwork from begin to end area officer was a credit score to you @KapilaSandy

Emma Powlett
New Farming Equip &Tech small cap #grants introduced, launch late Feb. @Ruralpay have listened & added ‘new stuff’. Look on the checklist & plan to use. Really easy course of,you possibly can do it over your breakfast desk ! No want for consultants ( like me !)

FCN NORTH
Scenes from the ultimate day @greatyorkshow . Another implausible 4 days highlighting all that’s nice in #Yorkshire . See you all subsequent yr! @FutureFarmerYAS @Ruralpay @KatieYon5 @BiteintoBritish @KateMorgan24 @DefraGovUK @YorkshireYFC @bishopton_farm @YorksAgSoc @RoyalFamily

Chris Millward
After simply 2 years of farming below @Ruralpay Countryside Stewardship, New Years Day birding @BibbeysWildFarm has been remodeled! 51 species incl: Snipe, Little Egret, Barn Owl, a great deal of Rook & Stock Dove, Raven, 2 Stonechat, large finch flocks. 25+ Yellowhammer & Reed Bunting

Richard Wordsworth
Busy day at @lammashow catching up with members new and previous on delinked funds, present buying and selling situations and SFI and likewise nice discussions with Defra and @Ruralpay on scheme growth and codesign. Same once more tomorrow I believe. #goodtobeoutandavout @NFUtweets

RPA
4th and last day of an ideal @greatyorkshow @Ruralpay @DefraGovUK have had nice conversations with stand guests about #SFI #CS If you wish to discuss these schemes come alongside to face 261 and meet the workforce @JanetHughes @NFUnortheast @CLANorth @FCNcharity @clanorthadviser

Vanessa Tagg
Should have been at @CerealsEvent. Great day and beautiful chatting to @Ruralpay. and freebies. My type of day. Heading home to feed hungry husband and calves.

Working in Partnership – Field officers and visits

Our area officers have…

• Visited 317,492 hectares of land
• Inspected 185,730 cattle
• Checked 1,413,812 sheep (together with exterior visits)
• Given steering 2,655 occasions to help farmers
• Completed 1,249 Meat and Livestock visits
• Undertaken 7,965 area primarily based visits
• Completed 206 Trader visits

Farmers and rural communities are on the coronary heart of what we do, as we try to offer wonderful supply and outcomes which are within the public curiosity. We’ll proceed to assist farmers and land managers by means of the agricultural transition, in search of to put worthwhile and sustainable farming and meals manufacturing on the forefront of environmental good follow.

We continued to hold out visits for management functions as a result of we’re giving out public funds, however with the goal of supporting farmers by providing better ranges of recommendation, steering and signposting to assist enhance compliance with requirements and scheme necessities and obtain higher outcomes.

As a part of this supportive method, we launched a brand new go to report guidelines. This helped to tell farmers of their obligations and included any recommendation and steering given, in addition to what goes nicely within the settlement. We use this perception, together with different information sources, to assist all our scheme individuals meet their obligations.

Field officers carried out 7,965 area primarily based visits over the previous yr.

We delivered a lot of enhancements final yr, reminiscent of simplifications for Countryside Stewardship (CS) and the brand new twice-annual funds of the Basic Payment Scheme (BPS). Our goal is to enhance the purchasers expertise additional by:

• Reducing the go to burden through the use of info from our distant commentary actions to extend the variety of checks we’re in a position to do with out the necessity for area visits.
• Using the info we collect, together with the distant observations and farmer suggestions, to establish points as they come up, serving to farmers and land managers get again on observe with their scheme necessities earlier than management visits.
• Ongoing coaching for area officers as schemes develop, and suggestions is obtained.
• Listening to suggestions and refining our method to area visits and making issues extra easy the place we will.
• Improving the pace of post-visit and fee processing.
• Supporting susceptible members of the agricultural group.

Ben Hastings, Field Officer

Ben has been a Field Officer for 18 years and describes it as ‘The best job in the world’ – He stated:

I take nice satisfaction from my function advising farmers on quite a few subjects, which may be very rewarding. Meeting all generations of farmers, landowners and brokers is fascinating, listening to their issues and tales, and for me, there’s nothing extra rewarding than spending time walking within the countryside, seeing an abundance of wildlife, landscapes and terrain.

I used to be very lucky to have been introduced up on my grandparent’s dairy farm in Cumbria the place I gained in depth agricultural data and expertise, in addition to a few years spent working within the animal pharmaceutical trade and in my spare time managing and appearing as gamekeeper for my very own pheasant and partridge shoot. My experiences and data of agriculture, the countryside, crops, wildlife, and birds has positively given me a bonus and helped me develop my profession and function as a Field Officer.

Working in Partnership – Collaboration with Farming Welfare Organisations

We labored with Defra to evaluate and align our current charity engagement boards, and the RPA Farmer Welfare Working Group was created in August 2022. The group consists of representatives from a spread of nationwide and native farming charities, many with a powerful rural psychological well being focus.

The function of the group is to work collaboratively on methods we will enhance entry to our companies for farmers and it offers the members with alternatives to interact with the RPA Head of External Affairs and the workforce, on RPA supply.

The perception we obtain is invaluable in informing the place RPA can assist farmers in numerous methods. It’s additionally a chance for us to transient the group on present exercise, efficiency and supply perception into features of our supply with material specialists.

Among different issues, the group have:

• Endorsed and strengthened our communication campaigns for key messages round BPS progressive reductions, website visits and mapping
• Input into our work on tone and language, reviewing the way in which we talk through letter
• Engaged with proposals to enhance the way in which we assist farmers experiencing difficulties accessing our companies

The External Affairs workforce have additionally attended and introduced at a lot of occasions each just about and face-to-face, run by members of the welfare group to interact with wider audiences. At Ripon Cathedral Rural Forum in June 2022, we spoke about our ambition to hear, be taught and do higher, together with our communications method and channels, the introduction of our Research and Insight Network Group (RING). Our new method to website visits and our buyer excellence coaching.

Richard Betton, Upper Teesdale Agricultural Support Services (UTASS):

The welfare working group has been an ideal alternative to assist the RPA develop its new extra proportionate method to manage authorities schemes. It has been particularly gratifying to see an actual understanding pushed from the highest that farmers are individuals, not simply an SBI quantity, and treating them accordingly.

Working in Partnership – Shows and occasions

We made some actually good progress implementing modifications to our schemes and processes which are having a major useful impact on our customer support. Our relationship with clients continues to evolve to change into a partnership with shared objectives and an emphasis on co-design.

Getting out and about into the communities we serve helps us to repeatedly enhance the client expertise and offers our individuals the chance to talk to farmers and land managers face-to-face.

This yr noticed us attend extra reveals and occasions than ever earlier than. We have spoken to over 3,000 clients at 40 occasions – a 150% enhance in comparison with the earlier yr.

Highlights embody The Great Yorkshire Show in July 2022, the Real Oxford Farming Conference in January 2023 and the National Farmers Union Conference in February 2023.

Main subjects of dialog had been across the Environmental Land Management Schemes, BPS and CS as anticipated. Our Prosperity and Productivity funding additionally gained a number of consideration, with farmers wanting extra info on the Animal Health and Welfare Pathway, Farming Transformation Fund, and the Farming Equipment and Technology Fund.

We additionally held 70 stakeholder conferences, together with our common working stage stakeholder engagement group conferences, the place we mentioned scheme-specific points in addition to longer-term proposals.

Katie Yon, Senior Stakeholder Manager and Shows and Events Lead:

This has been an exceptionally busy yr for us, and we’ve actually loved getting out to talk to extra individuals this yr than every other. We’ve made good strides in growing the connection we’ve with our stakeholders and clients. I do know there may be nonetheless extra to do, however we’re able to roll out subsequent yr’s schedule, get caught in and provides much more of our individuals some first-hand expertise of talking to our clients.

Working in Partnership – MP outreach

2022-2023, has been an ideal yr for MP engagement, increasing our providing and getting extra face-to-face alternatives with MP’s, farmers, and land managers at each regional and nationwide stage.

Our profitable MP roundtable occasions continued, and we held an extra 11 throughout the nation.

We engaged with round 800 farmers and had some wealthy conversations with our clients. Hot subjects included SFI charges, meals manufacturing, farmer welfare, progressive reductions, and the modifications from inspections to farm visits.

RPA held a drop-in session with MPs within the House of Commons in May 2022 which gave MPs the alternatives to listen to an update on the work RPA and Defra FCP had been concerned in and offered an open discussion board for answering questions.

After the success of this, an engagement session hosted by Lord Benyon within the House of Lords was organised in July 2022. This adopted an identical format to the House of Commons occasions we held. Key discussions had been on meals safety; scheme accessibility; and the method to regulation and enforcement.

We held 4 farmer roundtables with Trudy Harrison MP, who can also be Parliamentary Under-Secretary of State (Minister Environment). These have been nicely obtained.

Looking ahead, we’re within the strategy of organising additional MP roundtable occasions throughout England, returning to some constituencies we’ve already been to, and including a number of new ones onto the checklist.

Working in Partnership – Research and Insight Network Group and suggestions panels

Our Research and Insight Network Group was formally began in May 2022, to convey collectively the entire buyer perception we obtained into the company. There are presently 776 members from throughout the nation concerned – a mixture of farmers, landowners, brokers, trusts and charities.

The Research and Insight Network Group brings collectively buyer perception, analysis alternatives, workshops and user-testing to assist the company perceive our clients and supply actual and real suggestions in all kinds of areas.

567 members took half within the Countryside Stewardship suggestions survey, to offer key insights in find out how to make the scheme extra impactful and enticing to new candidates.

As nicely as holding focus teams with our clients to enhance the way in which we talk with them, we’ve seemed to enhance our land mapping course of.

We collaborated with feminine farmers to share their tales for International Women’s Day 2023, sourced volunteers to assist check the UK AERIUS undertaking’s on-line air air pollution calculator and began to have a look at methods we will enhance how farmers notify us of modifications to their land or entitlements through the RLE1 type.

Research and Insight Network Group members may even begin to attend RPA MP roundtable occasions and proceed to work collaboratively with Defra and FFCP on a lot of initiatives.

• 776 Research and Insight Network Group members
• 32 members took half in letters and language survey to enhance how we converse to clients
• 27 members took half in a Land Mapping focus group to handle key points
• 567 members took half in Countryside Stewardship suggestions survey to make the scheme extra impactful

The digital focus teams classes have been deemed “a positive step for the RPA” – with individuals feeling appreciative of RPA taking the time “to have focus groups and interact with farmers and landowners about their processes and proposed changes.” All [land mapping focus group] individuals stated that they might advocate comparable classes to different farmers in future.

Growth and innovation

Kudos Blends

We enabled Kudos Blends, primarily based within the village of Cleobury Mortimer within the Shropshire Countryside, to put money into a brand new manufacturing line and warehousing. This allowed Kudos Blends to have separate gluten-free and gluten-containing services.

Founded in 1999, Kudos Blends are a producer of over 70 various kinds of baking powder, supplying massive 25kg baggage of blended baking powder to bakery producers. Their goal is to assist bakery producers remedy a few of their challenges, together with growing shelf life, lowering sodium ranges and sustaining consistency of high quality.

Dinnie Jordan, founder at Kudos Blends:

We are immensely grateful to the Rural Development Programme for his or her beneficiant grant. With the set up of state-of-the-art gear, together with a ploughshare blender and first-class gear to regulate meals security, we will now completely segregate the manufacture of gluten-free and gluten-containing blends. This funding won’t solely profit our business, but additionally the broader group, as we proceed to develop and supply high quality merchandise to our clients.

Bannisters Farm

The Bannister household has been farming on the Yorkshire ‘Wolds’ for greater than a century and initially started rising potatoes as a break crop from cereals. Since the mid Eighties, they developed the intelligent concept of baking potatoes when at their greatest after which freezing them as a technique to lock in vitamins, seal in flavour and reduce down on waste. It now provides the meals service trade and the retail sector with frozen potatoes in a spread of various codecs together with baked potatoes, crammed jackets, roast potatoes and potato skins.

We helped Bannisters Farm to put in new gear to optically grade and kind potatoes that will in any other case have to be graded and sorted by hand. This new know-how is guaranteeing a extra environment friendly utilisation of potatoes crops and can double throughput on the website.

Wicks Manor

Located close to Maldon within the lovely Essex countryside, Wicks Manor is a household run farm producing award successful high quality pork merchandise.

Our funding enabled Wicks Manor to develop its current employees and meat processing services together with introducing a brand new machine to offer further packing capability. Together these parts will enhance productiveness by eradicating the necessity for handbook dealing with by means of the labelling course of. It additionally introduces new methods that can prolong the shelf lifetime of its merchandise.

Fergus Howie, Wicks Manor:

This undertaking has helped us to future proof our business securing jobs and increase exercise within the native economic system. Specifically, it has allowed us to develop our product vary giving us better alternatives to maneuver into new and rising markets.

Westcott Organics

Westcott Organics promote a spread of natural meat merchandise from their farm primarily based in Somerset.

Our funding offered for the development of a chopping and processing room and storage and ageing services on the farm which are all totally compliant with the natural certification course of. Recognising that lots of their clients shouldn’t have the storage capability for big orders, Wescott Organics can now butcher and course of their very own and neighbouring farms natural meat in a brand new licensed chopping room which permits them to interrupt down carcasses into extra retail pleasant packs.

With this devoted chopping and processing room they’re able to promote prime cuts to retail clients and the catering commerce as a premium product and are presently growing merchandise targeted on the kids’s natural meals market.

Improvements

Live Webchat for Customers

An vital step ahead in enhancing our buyer expertise has been the launch of the dwell webchat service. This service offers customers of those companies the choice of a further contact route to assist with basic enquiries as a substitute for phoning the Customer Contact Centre.

Feedback from our clients means that clients who use our companies would really like quick and quick access to seek out the knowledge they want which the webchat perform will be capable of supply them.

The pilot of the dwell webchat service for purchasers continues to achieve success. From 28 February 2023 by means of until 28 April 2023, there have been 527 webchats accomplished throughout the Pet Travel service and BCMS English livestock dwell webchat service.

RPA name centre operators work throughout the dwell webchat service, inbound buyer phone calls and emails, offering varied methods to correspond with the company and assembly inbound buyer demand.

Improved Telephony

RPA’s buyer telephony enhancements are among the first buyer expertise know-how and business course of modifications and enhancements delivered by RPA’s Improving Customer Experience Programme. This will assist RPA to realize its 5 yr Strategy goal of turning into an ‘exemplar of customer service’ while supporting cultural change.

Social Media Customer Service

Where clients have requested basic customer support inquiries to us on social media (Facebook and Twitter), we’re responding to them on social media with the reply or pointing them to the suitable place. We additionally collate themes of those queries and work with colleagues to update FAQ’s and data on GOV.UK, as applicable, and likewise linking with our Customer Contact Centre colleagues.

GOV.UK Improvements

Improvements to GOV.UK content material, recommendation and steering for purchasers continues to make sure they’ll discover what they want shortly, the content material is updated and offers solutions to their questions. From person analysis, farmers stated they couldn’t discover what they had been on the lookout for, and after they obtained there, they stated there was an excessive amount of to learn. Based on this suggestions we’ve made vital modifications to Countryside Stewardship and Basic Payment Scheme pages on GOV.UK.

RPA Podcast

The RPA Podcast is a brand new communication channel for the Rural Payments Agency to assist farmers, land managers and rural communities maintain updated on developments on the RPA, supply assist and steering, and navigate agricultural transition. Farmers don’t all the time have time to learn all of the paperwork regarding ongoing schemes and one-off funds, so The RPA Podcast has enabled us to offer info in a format which might meet their wants. We cowl a spread of topics in every episode – from scheme updates and utility steering to case research and wellbeing and business assist. Downloads proceed to extend month-on-month as consciousness of the podcast grows.

RPA Blog

The RPA Blog is an effective way of sharing tales, and we revealed 59 blogs within the final yr. Along with scheme updates, key dates and new initiatives we labored on, our ‘Introducing you to…’ blogs gave nice perception into the various roles we’ve on the RPA and helped to get to know among the individuals who work within the Agency.

Future Improvements

As a part of enhancing the client expertise, work is underway to simplify the appliance course of and enhance our on-line varieties for our clients. Amongst different modifications, the recent Countryside Stewardship Mid-Tier purposes launch demonstrates the place this work is being put into follow. Applications are actually made on-line, by means of the Rural Payments Service, an identical technique to SFI purposes. We have additionally created an assisted digital route, and farmers are in a position to request assist from the RPA with submitting their purposes on-line. We’ve already seen some nice outcomes from these modifications. CS Mid Tier purposes are transferring to dwell agreements inside weeks and in some circumstances, days in comparison with 4 to 6 months beforehand.

Andrew Consett, Agricultural Advisor, Wilbys (Yorkshire):

The system [CS Mid Tier online application] is a breath of contemporary air! Whilst this wasn’t a posh settlement, I’m pleasantly stunned by how easy it’s to run by means of.

Outreach – Recruitment, Colleges, Development

Getting In, On and Ahead Groups

Our Getting In, On and Ahead teams have labored on initiatives to enhance all phases of the worker expertise. To assist enhance the expertise of those who be part of us we launched two new surveys together with a brand new starter and month in: verify in survey so we will perceive what we’re doing nicely and the place we will enhance. We’ve up to date our candidate packs and job adverts to incorporate extra recommendation and instruments to assist these making use of, for roles throughout the RPA which have additionally been supported by drop-in Q&A classes round particular recruitment campaigns.

Internally we additionally developed a brand new Workforce and Recruitment hub to offer steering and instruments for emptiness holders in addition to sources for candidates trying to change roles.

Our work with East Durham College

We’re persevering with our work with East Durham College to discover alternatives for joint studying and the event of scholars, academics and RPA colleagues over the following yr. We are additionally exploring choices to offer perception days and industrial placements to college students, in addition to alternatives to equip East Durham College educators with extra data about upcoming modifications.

East Durham College are equally exploring alternatives to assist develop the agricultural data of RPA colleagues coaching by means of programs and visits to their working farm. Helping to make sure that our colleagues higher perceive our clients and the challenges they face enhancing the service we will present. Once this partnership mannequin is piloted, we are going to look to roll-out to this method to different agricultural faculties throughout the nation.

So far in our partnership we’ve spoken to the scholars learning agriculture at East Durham College about their journey into and experiences of farming, together with what they like about, the challenges they face and the recommendation they might give somebody contemplating entering into farming.

We have additionally organized for the faculty to be a part of our Farm Visits pilot, and have labored collectively to create an academic and informative day for our colleagues. This will give them a chance to get a greater understanding of how farms work, so in flip they’ll present a greater service to our clients. It additionally permits our colleagues to see how their work contributes to actual outcomes and impacts on actual individuals.

Beyond Boundaries

Seven RPA colleagues efficiently accomplished the cross-government Beyond Boundaries expertise programme and we’ve one other 12 colleagues who’ve began this yr. The Beyond Boundaries programme is a one-year cross-government growth programme designed to assist individuals develop the data, expertise and networks required to build a satisfying and efficient profession within the Civil Service.

Outreach – Apprentices and Social Mobility

Last yr we offered three Summer Diversity Internship placements, now generally known as the Summer Internship Programme (SIP) to college students from numerous backgrounds of their second and last years of college examine. The SIP offers individuals from all backgrounds, particularly with a regional or Science-Technology-Engineering or Mathematics (STEM) focus, and particular numerous backgrounds the chance to see what a profession within the Civil Service is like.

Alice, intern in our Newcastle workplace:

I’ve actually loved the chance to discover and perceive how RPA works. Before I began my internship, I didn’t actually perceive the work RPA did or how the broader Defra division labored. Through collaborating and observing in conferences each inner and exterior with our workforce, I’ve been in a position to develop my understanding of RPA and the work that it does.

Taran, intern in our Bristol workplace:

I’ve actually loved contributing to the workforce and seeing the event of a undertaking – the RPA is a really collaborative organisation and I do like how everybody’s concepts are heard and thought of.

Our Partnership with Skills Builder

This reporting yr we’ve been delighted to change into Collective Impact Partners with Skills Builder to assist their mission that at some point, everybody will build the important expertise to succeed. So far, the RPA have sponsored 9 faculties to entry the Skills Builder’s Accelerator programme. This programme helps equip faculties with professional coaching, instruments and sources to make sure important expertise are part of on a regular basis studying. Helping to handle the present ‘skills trap’ for these from much less advantaged backgrounds which undermines social mobility, productiveness and wellbeing.

• In 2022-23, by means of our continued Collective Impact Partnership we:
• Provided funding to 4 faculties throughout the South East, North West and West Midlands – two secondary faculties and two particular academic wants faculty.
• Reached 145 academics. Helping to build their confidence in instructing important expertise, with 82% of academics reporting they felt extra assured in instructing important expertise up to now.
• Reached 1,475 college students. With faculties supporting their progress to grasp, articulate and develop their important expertise

We additionally supported 10 digital employer Q&A classes this yr to major and secondary faculties and faculties throughout the UK and plan to assist extra within the coming yr. During these classes, RPA individuals shared how they used important expertise of their roles and gave important insights into the civil service, breaking down misconceptions of the general public sector.

On common, 23% of scholars are eligible free of charge faculty meals throughout faculties sponsored (the nationwide common is 22.5%) reflecting our want to assist these from higher-than-average areas of drawback.

Petra Sneddon, RPA volunteer:

I assumed it was wonderful, what an ideal factor to be half off! Useful to listen to what different business representatives needed to say and realise all of us had comparable journeys.

Skills Builder School Visited:

These classes made the important expertise and employment tangible to the scholars, lots of whom don’t get these alternatives to interact with totally different professions – together with public sector and authorities careers.

Volunteering

Our individuals engaged in a wide range of volunteering alternatives over the past yr from seashore cleans and tree planting to balsam bashing and butterfly conservation.

We have used an inner sharing platform to advertise and allow participation in charity and volunteering occasions, making it simpler for our individuals to establish volunteering alternatives and undertake them.

In August 2022, RPA colleagues, and household, joined the Eden Rivers Trust (ERT) for a day of balsam bashing – an invasive non-native plant to the UK. The volunteers had been proven find out how to establish the plant in addition to find out how to pull it up. They made a pile able to be jumped on to bash down the balsam and decay in a single place. The group will return in August 2023 to take away the smaller, contained vegetation and proceed the work.

In February 2023, 15 colleagues from RPA, Natural England and Defra joined collectively for a day organised between RPA and Forestry England. The volunteers labored on butterfly conservation on the butterfly areas at Haldon Forest Park round a species known as the Pearl-bordered Fritillary a Priority Species below the UK Post-2010 Biodiversity Framework. The work concerned clearing by hand bigger saplings and vegetation so the perfect habitat of bracken for the butterflies might develop.

David Furness awarded Queen’s Platinum Jubilee medal for his work with Mountain Rescue England and Wales

David Furness, an RPA Field Officer from York, was awarded the Queen’s Platinum Jubilee Medal for his volunteer work with Mountain Rescue England and Wales.

David, who has labored within the company for the previous 27 years supporting our farming clients, stated:

I’m very proud to have volunteered with Mountain Rescue England and Wales for over fourteen years. When I obtained an electronic mail telling me I used to be receiving the award I used to be actually happy and humbled to be one of many many recognised.

David has been a blue mild driver coach, is an accredited 4 x 4 teacher, lead gear officer, workforce chairman, superior casualty carer and swift water rescue technician.

Net Zero

Net Zero Network, a workforce of volunteers who’re all passionate in regards to the trigger and collectively wish to be concerned in serving to RPA obtain its formidable targets in the direction of serving to the federal government ship its dedication of carbon neutrality by 2050.

Our community helps colleagues by elevating consciousness and by actively in search of out and dealing to implement alternatives to make carbon financial savings throughout the company.

We are regularly on the lookout for alternatives to work in a extra sustainable approach and make progress in opposition to our dedication to Net Zero, as detailed in our 5 yr Strategy.

• Net Zero implications are a key consideration in all selections made by our Executive Team.
• All of our Executive Team have sponsored themes and work with colleagues to enhance our efficiency in these areas.
• We are establishing ourselves as an energetic stakeholder throughout the Defra group on sustainability issues and are difficult resolution makers to make sure Net Zero is a key consideration of their resolution making course of.
• We are working to take away client single use plastics from our places of work. This consists of by means of our provide chain as nicely, for instance, in areas reminiscent of the availability of catering
• We are trialling the Greener Items Stationery catalogue on behalf of the Defra group.
• We are encouraging colleagues to think about sustainability of their day-to-day work and search for alternatives to work in a greener approach. Examples of this embody insurance policies and services to encourage extra sustainable strategies of commuting, enhancing our recycling provisions and lowering the variety of printers we’ve in our places of work.
• We have additionally included reference to sustainable behaviours in our efficiency requirements.

Decarbonising our journey

We are persevering with to decarbonise our journey and guarantee individuals think about sustainability when planning their work. This consists of embracing know-how and never travelling within the first place if purposes like MS Teams can be utilized as a substitute technique to face-to-face communication. Where there’s a must journey, we have already got insurance policies in place which prohibit flights being taken on mainland Great Britain and journey by practice is our most popular technique of transport.

We even have a lease automotive scheme, which is predominantly utilized by our area officer colleagues. This is roofed by the Greening Government Commitments, and we’re working in the direction of electrifying our lease automotive fleet in order that it’s zero emission by tailpipe by the top of 2027. We comfortably met the GGC for a minimum of 25% of our automobiles to be Ultra-Low Emission Vehicles (ULEV’s) by the top of 2022. Once orders positioned have been fulfilled, 64% of our lease automobiles (67/104) will likely be ULEV’s, with 23% of those totally electrical (24/104).

We have additionally inspired all colleagues to finish the Carbon & Climate Change Training that has been developed by the Defra group Sustainability Centre of Excellence. This coaching consists of particular person modules that cowl the science behind the topic, Defra’s function and private motion we will all take earlier than a last facilitated workforce session the place delegates develop their very own motion plan.

Mike Sinclair, Net Zero Network:

We’re striving to embed sustainability within the organisation and put it on the coronary heart of every thing we do, from the schemes we administer to the companies we procure, the selections we make and within the behaviours we show.

Developing our People – Green Careers

During the previous 12 months, we’ve continued to roll out the Chartered Management Degree Apprenticeship (CMDA) in Environmental Sustainability Leadership in collaboration with the University of Cumbria, the primary of its type within the nation.

This revolutionary programme noticed a second cohort take part September 2022. Five colleagues from RPA, alongside others from Defra group, started their journey to build their management expertise in environmental sustainability which will likely be important throughout Defra group as there will likely be a reliance on management in environmental sustainability at each stage, in each function, in each organisation.

Sapna Chacko, SFI Delivery Team:

I made a decision I wished to do that because it affords implausible alternatives for growing new environmental sustainability management expertise that not solely embody work-based development but additionally permit me to develop the managerial expertise, data and expertise to showcase the worth of studying about sustainability in order that I may help obtain our sustainability objectives.

Developing our People – Customer Excellence

Over 1,800 RPA colleagues have up to now participated in our new in-house Customer Excellence coaching. Designed and developed by RPA, this coaching asks our colleagues to make a dedication to consider how the work we do has an actual influence on actual individuals, to make each resolution with the client in thoughts and to attempt for outcomes which have the client’s greatest pursuits at coronary heart. Through an inner accreditation course of our colleagues are inspired to proof how they’ve utilized their studying and demonstrated wonderful service. Rolling this out throughout our groups is giving all of our colleagues the chance to grasp the function they play within the buyer expertise and customer support technique, and to be part of our improved service providing.

Developing our People – Ambassador Network

We perceive the worth of face-to-face interactions and the significance of growing hyperlinks to the communities we serve. This yr we’ve launched our RPA Ambassador Network to assist our individuals develop their data and confidence to exit and signify RPA at native stage. Our first 25 Pathfinder Ambassadors are present process their coaching and can signify RPA by partaking with farmers, stakeholders, careers companions and different exterior audiences in face-to-face interactions. Having native individuals have interaction our audiences will allow us to build belief, and collect perception so we will hear, be taught and build higher relationships.

As nicely as benefitting the agricultural communities we serve, being an RPA Ambassador is a superb alternative for our individuals to develop their expertise, their understanding of points impacting our clients and to reveal their pleasure within the work they do.

Developing our People – Farm Visits

We made a dedication to provide as lots of our individuals as attainable the chance for an on-farm expertise, to see how their work contributed to actual outcomes and actual individuals.

To present an ideal understanding of how farms work, and farmers’ wants, we’ve organised a sequence of pilot Farm Visits with a view for these to be rolled out throughout the company in 2023.

Working in partnership with a wide range of farms from agricultural faculties and vacationer farms to property managed farms, we’re offering an ideal growth alternative for our individuals in addition to enhancing the client expertise.

Developing our People – Employee Awards and STaR

STaR

Our ‘Special Thanks and Recognition’ platform is a approach for our individuals to recognise their colleagues for going above and past of their work. This yr, colleagues throughout the company have recognised their colleagues and thanked them for the good work and supporting our clients through the use of STaR.

A complete of 5,359 awards got within the final yr – each additional aiding employees engagement and the optimistic impacts of that on our service to clients.

Our People Values

Our values assist us set our route, have interaction individuals, and ship outcomes. They are Visible, Engaging, Respectful, Inclusive, Trusting, Accountable and Supportive.

Each yr, we maintain our RPA worker awards ceremony. This is a spotlight within the calendar as we see and listen to in regards to the distinctive work our individuals have undertaken and the exemplar behaviours they exhibited.

Operational Delivery Profession

Lee Martin-White, Head of Operational Change in our Agricultural Transition Directorate received bronze on this yr’s Operational Delivery Profession (ODP) Awards Community class. This award recognises excellent work in Operational Delivery which has had a optimistic influence on the lives of individuals.

This is the second yr operating that we’ve had a finalist representing RPA on the awards, along with shortlisted colleagues and lots of different nominees. Being nominated for an ODP award reveals recognition of colleagues and groups making an actual distinction to the way in which we work for our clients.

The Operational Delivery Profession is the largest career within the Civil Service, serving tens of millions of presidency clients yearly. Here are some spectacular details about this yr’s ODP awards:

• There are 250,000 ODP colleagues throughout the civil service
• There had been 1,000 nominations for these awards
• Spanning 42 totally different departments
• 250 invited alongside to the day
• Nine award classes, with a particular Head of Profession award chosen from these shortlisted throughout all of the others.

Lee Martin-White:

I’m genuinely grateful for the nomination, which has come about due to the work I do on the Carnegie theatre in Workington, the place I’ve been a volunteer trustee for twelve years now. The Carnegie is a group building. It serves the agricultural communities in and round Workington. During my time on the Carnegie, I’ve diversified the building and what it does to serve its group higher as a small native charity, sourcing funding for brand new stage lights to change into extra power environment friendly, enhancing accessibility by in search of funding to put in computerized doorways, or simply sustaining the Grade 2 listed building as a result of it’s such a heritage asset. Over the previous two years I’ve labored in the direction of the Carnegie turning into extra embedded into the group by means of actions that assist psychological well being, wellbeing and youth schooling working with schooling suppliers and social prescribing groups. I’m delighted this yr that the Carnegie will likely be beginning its personal youth work programme. So what I do as a volunteer may be very aligned to what we do at RPA, serving to rural communities, usually the identical communities that we dwell and work in.

Performance Overview

Objective: Timely processing and fee of the Basic Payment Scheme

Objective: Timely processing and fee of Trader Schemes

Objective: Timely processing and fee of Grant Service Programme Schemes

Objective: Maintain correct data of cattle in Great Britain

Key business efficiency indicators are frequently reviewed and up to date from earlier years.

Performance Analysis

Our ambition is to assist create thriving businesses, economies and environments and make sure the sustainability of our rural communities. We perceive the worth of balancing the wants of farming, meals and the surroundings. We attempt to repeatedly enhance our efficiency, by means of trusting and empowering our individuals to rework our companies and all the time put our farmers on the centre of our focus. The governance assertion elaborates on dangers: threat overview, fraud threat and disallowance threat.

Farmers and rural businesses throughout the nation have been helped by a powerful efficiency throughout all our companies in 2022-23, together with new schemes such because the Sustainable Farming Incentive. We have continued to enhance and simplify the Agri-transition schemes to ship higher buyer experiences and outcomes, streamlined our business efficiency and created alternatives to change into extra versatile and responsive in how we offer our companies. Going ahead, our transformation work will proceed to evolve and will likely be carefully aligned as we proceed the transition to new schemes.

Basic Payment Scheme (BPS)

Our efficiency has continued on the similar excessive stage as earlier years with 98% of BPS funds being made to farmers by the top of December 2022. We had been in a position to keep this stage due to measure we’ve taken to simplify the administration of the scheme to make it extra environment friendly.

In recognition of the significance of money movement to the agricultural group significantly because of points exacerbated by the conflict in Ukraine, farmers claiming BPS Payments obtained two separate funds for the 2022 scheme. This was the beginning of a everlasting change to the BPS fee cycle, with funds now being made in two instalments every year till the top of the agricultural transition interval in 2027.

For the primary time in July 2022, we paid farmers an Early Advanced Payment (50% of their Claim Value), and 82,872 BPS farmers obtained an Early Advanced Payment injecting £680 million into the agricultural economic system. Then on 1 December 2022, the primary day of the fee window, 81,165 farmers (97.0%) had been paid an extra £648 million. By 31 December 2022, we had paid 82,191 (98.3%) of farmers and this had elevated to 83,017 (99.3%) by 31 March 2023. In whole, we launched over £1.37 billion of BPS funds into the agricultural economic system this yr (2021-22: £1.65 billion). BPS funds started being progressively phased out in England in 2021. This discount in funds, will proceed till 2027 when the final of the funds will likely be made. The funding that’s taken away from BPS will likely be recycled into the brand new home schemes administered by the company.

Countryside Stewardship (CS)

During this yr, we made enhancements and enhancements to attempt to encourage extra farmers to take part within the Countryside Stewardship scheme. Along with issuing a better variety of funds, we delivered modifications that not solely made it simpler for farmers to use, but additionally improved their buyer expertise.

We launched a simplified journey for on-line purposes and an annual declare declaration, which meant that settlement holders shouldn’t have to finish a burdensome annual declare type and may as an alternative declare on-line that they’re fulfilling the obligations of their settlement. This has decreased the executive burden on them while additionally making the declare for fee course of faster and extra easy.

As of January 2023, there have been round 31,700 CS agreements in place containing Revenue choices and 4,613 with Capital solely agreements. This was a rise of round 7,000 dwell agreements since reported in January 2022 and is a 94% enhance in uptake since 2020 displaying how Countryside Stewardship stays a key automobile for delivering vital outcomes for the local weather, surroundings, and meals manufacturing.

CS Claims funds made

CS Mid-Tier Agreements provided to Customer

CS Higher Tier Agreements provided to Customer

As a results of earlier simplifications, we had made, we noticed a 25% enhance within the variety of eligible 2022 CS claims we obtained in comparison with the earlier yr.

By the top of March 2023, we had issued 23,185 (95.2%) 2022 CS funds, equating to £251 million (£271 million of CS expenditure reported in Note 5 Schemes administered by the company, consists of £20 million of accruals). This is a major enhance in comparison with 2021-22, after we issued 17,631 (93.8%) funds, demonstrating the company’s adaptability and resilience in responding to vital quantity will increase.

We met our mixed goal to challenge 95% of 2022 CS agreements by 31 March 2023. By this date, we had despatched 7,022 (99.5%) Mid-Tier 2023 agreements and 821 (91.6%) Higher Tier 2023 to farmers which is an enchancment on final yr the place we had despatched affords of settlement to eight,184 Mid-Tier (94.4%) and 760 (88.2%) Higher Tier 2022 candidates.

Since 1 April 2022, we’ve obtained 10,312 CS Capital Claims and have paid 9,681 claims roughly £120 million. On common, claims had been processed and paid inside 21 working days from level of receipt which is 1 / 4 of the time faster than final yr (2021-22: 28 days).

All CS claims for declare yr 2021 onwards, each paid and accrued, are reported within the company’s accounts inside Note 5 expenditure. Prior to that date all CS claims had been reported in Defra’s accounts. Consequently, the figures quoted above for funds made in 2022-23, are for each the company and Defra CS programmes and won’t reconcile to the figures reported in Note 5, that are for the company CS expenditure solely and which additionally embody accruals.

Environmental Stewardship (ES)

This yr has seen our greatest efficiency thus far relating to making Environmental Stewardship funds to farmers.

We have launched new measures this yr to enhance the administration and efficiency of the scheme. Under guidelines agreed with the EC, beforehand we had been solely in a position to supply one-year extensions and on a rolling foundation. From January 2023, we might set our personal guidelines and as all Higher Level Stewardship agreements are actually domestically funded, we’ve given current settlement holders better certainty and readability by providing them extensions as much as 5 years.

The quantity of extensions provided has elevated yr on yr. 4,150 had been provided in 2021 which elevated to five,756 in 2022 and to six,882 in 2023.

As of 31 March 2023, we made a complete of 8,681 (95.6%) funds equating to £126 million.

All ES scheme transactions are reported inside Defra’s Annual Report and Accounts, and never in RPA’s Annual Report and Accounts.

Sustainable Farming Incentive

In 2021, the Sustainable Farming Incentive (SFI) pilot was launched by the RPA who had a key function within the growth and co-design of the scheme, alongside accountability for the profitable operational supply of the scheme and administering funds.

There are presently 831 dwell SFI pilot agreements, the vast majority of which have obtained all 4 quarter funds to a complete annual worth of £12.1 million. The company stories a better determine of £12.5 million in Note 5 Scheme administered by the company, as this determine consists of £0.4 million of SFI accruals.

Since February 2023, second yr funds on these agreements began totalling round £933k.

We opened the SFI scheme for purposes in June 2022 in an incremental approach. Using perception gained from the pilot, we’ve designed a brand new service that’s faster and extra easy for farmers than earlier schemes. It consists of new options that permits us to automate the checks we have to do and course of purposes far more shortly than we’ve beforehand been in a position to do. Considering, farmer suggestions, we launched rolling purposes which permits farmers to use when it fits them, fairly than having to fulfill a deadline.

As of 31 March 2023, we had obtained 2,726 eligible purposes, of which, 96% of farmers have an settlement in place and are presently delivering on the requirements. The whole annual worth of those dwell agreements is round £16.1 million.

The Annual Health and Welfare Review ingredient of the SFI scheme began its preliminary testing in September 2022 and utilizing suggestions obtained from farmers and trade specialists, we opened it to all eligible farmers in February 2023.

The evaluate permits livestock farmers to get funding for a vet to go to their farm and as of 31 March 2023, we had obtained 1,271 purposes, of which, 37.3% had an settlement in place price £213.9k. Agreement holders have six months from the date of the settlement to submit their one-off declare and up to now, 29 claims had been paid a complete of £13.9k. The company stories a better determine of £18k in Note 5 Scheme administered by the company, as this determine consists of £4k of vet visits accruals.

See Note 20 beneath, which explains that from 21 June 2023, SFI 2022 has been closed to permit early take up of an improved SFI 2023 scheme.

Trader Operations

The dealer operations workforce efficiently concluded two emergency schemes (Private Storage Aid) and (Slaughter Incentive Payment scheme – SIPS) that had been delivered on behalf of the core division, to handle the backlog of pigs on farm. Over £580k was paid to the trade operators who utilized to those emergency schemes.

We issued over 42,000 import licences and varied types of export certification to assist the motion of products out and in of the UK. All licences had been issued inside 5 working days, exceeding the commitments set for the yr of 98%.

We additionally paid Fruit & Vegetables Producer Organisations 100% of their annual claims by the regulatory deadline of 15 October 2022. 99.8% of School Milk claims had been paid inside 90 calendar days, which represented just one out of 652 outdoors of the 90 days. £5.7 million was paid by the School Milk Scheme this monetary yr.

We offered over £40 million of monetary assist this yr to Fruit & Vegetables Producer Organisations overlaying the entire UK’s general manufacturing.

We helped over 14,500 faculties throughout England, Scotland, and Wales to offer subsidised milk, yoghurt and yoghurt merchandise to their college students.

Grants service

Our principal focus is supply of Farming and Countryside Programme (FCP) aims. This consists of the Farming Investment Fund (FIF) grants, below the Farming Equipment and Technology Fund (FETF) and the Farming Transformation Fund (FTF). We are additionally finishing the ultimate supply of our EU socio financial programmes, in addition to beginning to ship different non- FCP grants.

By the top of March 2023, almost 14,000 Rural Development Programme for England (RDPE) tasks had been awarded over £496 million in grant funding, these tasks in whole signify an funding within the rural economic system of over £1.12 billion.  Just over £448 million in grant funding has now been paid to tasks because the begin of RDPE grant funding. And we’re managing the completion of the few remaining tasks.

All RDPE grant transactions are reported inside Defra’s Annual Report and Accounts, and never in RPA’s Annual Report and Accounts.

The FETF Fund offers grants in the direction of the cost of kit and know-how to enhance productiveness, surroundings and animal well being and welfare. The declare window for FETF Round 1 closed in October 2022, and as of 31 March 2023, we had paid out 3,182 claims price £33.6 million, over 2022-23 and 2021-22. The whole of the identical two monetary years in Note 5 for FETF Round 1 are barely greater because of accruals.

We have now launched FETF 2023. We opened the portal for Improving Farm Productivity grant and Slurry Infrastructure grant purposes in February 2023 and obtained 2,777 purposes price £28.3 million. The Animal Health and Welfare scheme portal opened in March 2023, and the scheme time limit was 15 June 2023.

The on-line checker for FTF Water Management grant closed in January 2022. 233 tasks with a complete grants request of £32.9 million had been invited to submit full purposes and 106 had been obtained requesting £19.8 million in grants. A second spherical of the FTF Water Management scheme launched in April 2023. The on-line checker for FTF Improving Farm Productivity grant closed in March 2022. 338 tasks, with a price of just below £61.6 million, had been invited to stage 2 of the method, and 144 purposes had been obtained price £20.6 million.

The on-line checker for FTF Adding Value grant opened for purposes in June 2022 and closed in July 2022. The company obtained 658 on-line purposes with a price of £76.3 million of which, 628 tasks have been invited to submit a full utility for stage 2. The utility window closes for this stage on 31 January 2024. Applications for the FTF Slurry Infrastructure grant opened to farmers in October 2022 and closed in January 2023. In March 2023, 374 of the 1,292 candidates had been invited to stage 2 of the appliance course of, and these have to be obtained by 28 June 2024.

We proceed to work carefully with the core division to assist RPA’s ambition to be the popular supply physique for grants, taking over new areas of labor throughout wider Defra, responding to all requests for brand new schemes. An instance of that is the Fly-tipping Intervention Grant (price £800k) which we launched in December 2022, with 37 native authorities who submitted purposes price £1.5 million. We are additionally reviewing our response to emergency restoration within the agricultural sector from a coverage and supply perspective as a part of future planning.

The Farming Transformation Fund offers grants in the direction of massive capital gadgets to assist businesses enhance productiveness, profitability, and environmental sustainability.

It covers 4 grants:

• Water Management – for capital gadgets to enhance farm productiveness by means of extra environment friendly use of water for irrigation, and to safe water provides for crop irrigation by the development of on-farm reservoirs
• Improving Farm Productivity – for capital gadgets to enhance farm and horticulture productiveness utilizing robotic or autonomous gear and methods to help crop and livestock manufacturing and the set up of slurry acidification gear
• Adding Value – is accessible for growers or producers so as to add worth to eligible agricultural merchandise after they’ve been harvested or reared
• Slurry Infrastructure – out there to pig, beef, and dairy farmers whose farming methods produce slurry. It helps change, build new or develop current slurry shops to offer six months’ storage

Cattle data

We keep a web based database to report cattle births, deaths and actions of all bovine animals in England and Wales.

Our British Cattle Movement Service (BCMS) achieved all key efficiency indicators with 99.5% of cattle births, deaths and actions accomplished inside agreed deadlines.

The quantity of non-electronic transactions has decreased from 612k to 516k (96k) from the earlier yr, and we proceed to advertise on-line reporting as the popular route.

Our individuals working in BCMS proceed to offer material experience for the alternative livestock methods for England and Wales. This consists of planning for the managed disaggregation of the present service and transition to the brand new successor service. The alternative for the Cattle Ear Tag Allocation Systems was rolled out in February 2023. RPA will likely be administering the ear tag allocation service on behalf of Defra with Livestock Information Ltd appearing as a provider of the IT system below a three-way memorandum of understanding.

Tracing animals helps to regulate and eradicate bovine ailments reminiscent of Bovine Tuberculosis, Bovine Viral Diarrhoea and foot and mouth illness. It protects customers by ensuring that merchandise within the human meals chain are secure.

Regulatory & Advice service

In line with RPA’s altering method to visits turning into extra partnership-based, working along with the farmer to realize the environmental outcomes, our programme of visits is designed to fulfill our obligations for utilizing European Commission and UK money, guaranteeing funds made by the company are correct, and moreover assist safeguard the surroundings, the general public, crop well being, animal welfare and livestock and meals traceability.

Site visits proceed, for management functions, to guard public funds, however the visits have advanced to be extra supportive together with for instance higher signposting to info and steering. This method helps farmers to realize the environmental outcomes of schemes and can assist farmers and land managers ship public profit for public items.

The company has elevated its distant sensing functionality (use of satellite tv for pc information and aerial images) to scale back burden of visits on the farmers.  Increasing our technological and analytical functionality, for instance by means of the elevated use of directed recommendation and steering exercise utilizing satellite tv for pc information, has allowed us to proactively assist farmers earlier than points come up.

Where points are discovered, we are going to assist farmers to repair what has gone improper, wherever attainable. For instance, we’ve already made modifications to cross compliance visits to take a extra supportive and collaborative method in circumstances the place there isn’t a intent to trigger hurt.

In 2022-23, RPA was liable for finishing up over 7,965 visits, throughout a variety of meals and farming grant, assist schemes, and our regulatory perform areas. In addition, an extra 1,200 distant visits had been carried out digitally.

We accomplished 1,300 cattle identification and a couple of,300 sheep and goat inspection visits throughout the regulatory deadlines.

Additionally, we continued to ship our regulatory obligations to the purple meat sector. During 2022-23, we carried out 261 Beef Carcass Compliance visits and 77 Video Imaging Analysis visits to beef vegetation working this know-how, in addition to 133 Pig Carcass Grading visits, 173 Deadweight Price Reporting and 277 Beef Labelling Scheme inspections this yr.

Geospatial companies

To help with the supply of the land-based schemes, RPA is liable for the collation and upkeep of the Rural Land Register for England. This captures land info reminiscent of boundaries and land covers for instance: arable, grassland for areas which are registered to obtain funding from the land-based schemes. This geospatial info is accessible to farmers and land managers for their very own land.

We have accomplished 131,099 digitisation transactions representing 105,025 revealed parcels. The completion of those jobs supported the BPS, CS, ES and SFI fee targets.

We proceed proactive land change detection exercise with roughly 920,000 parcels checked this yr to assist the accuracy of the Rural Land Register. This exercise is accomplished utilizing the latest intelligence from aerial images, satellite tv for pc imagery and different geospatial datasets.

We proceed to have a look at revolutionary methods in that geospatial information can be utilized to assist RPA in assembly its obligations for compliance to make sure funds made by RPA are correct. For the supply of the SFI 2022, satellite tv for pc imagery has been efficiently examined as a distant monitoring method.

We keep the accuracy of roughly 2.7 million land parcels overlaying round 9.75 million hectares which equates to 75% of land in England.

Customer Contact Centre

During the final yr, we’ve renewed our deal with offering wonderful customer support. A brand new studying and growth programme is being rolled out throughout the company geared toward ensuring that the client is on the forefront of every thing we do, from growing processes to responding flexibly to buyer requests wherever attainable.

We have labored with teams of our clients to guage and enhance our companies and communications. From this, we’ve developed and applied new processes and buyer contact instruments to permit clients better flexibility when contacting us or sending us declare or utility info. Using this suggestions, we goal to repeatedly enhance the general buyer expertise when they should contact us.

We proceed to develop new processes and improve our buyer contact know-how to modernise our customer support, together with introducing a webchat pilot to permit dwell chats with our name centre operators on each the Pet Travel Scheme and Defra helplines. We will prolong this supply to our different helplines if the pilot is a hit.

The Defra and Pet Travel Scheme helplines obtained 50,732 calls, answering 49,370 calls (97.3%) throughout 2022-23. We answered 84.3% throughout the service stage settlement of 80% inside one minute.

The remaining helplines obtained 206,583 calls, answering 200,036 (96.8%) throughout 2022-23. We answered 85.8% throughout the service stage settlement of 80% inside two minutes.

We responded to almost 250,000 calls and to greater than 188,000 gadgets of correspondence throughout the yr.

Transparency of information and entry to info

During 2022-23, we responded to 473 requests for info this yr, of which 96.2% had been throughout the agreed deadlines. These circumstances concerned requests for info below the Freedom of Information Act 2000, the Environmental Information Regulations 2004, and the General Data Protection Regulations (GDPR)/Data Protection Act 2018.

We additionally obtained eleven inner opinions and three Information Commissioner’s Office complaints. An further 72 routine business requests had been managed by our Information Rights workforce.

In line with necessities all spend on authorities procurement playing cards, expenditure with all RPA suppliers better than £25,000 per transaction and an entire procurement spend evaluation is reported on the central authorities web site. The procurements workforce skilled some down-time in January 2023, to accommodate a migration to a Defra group, Single Operating Platform (SOP) primarily based finance system. This explains the decrease fee statistics reported beneath for 2022-23.

Complaints

The variety of complaints obtained over the past yr has decreased, which displays our persevering with focus to simplify and enhance our companies, be taught classes, and make correct and well timed selections, first time. Most buyer complaints associated to the Basic Payment or Countryside Stewardship schemes making up 75% of the overall. The common variety of days to resolve complaints has drastically improved from 28 days in 2021-2022 to twenty days for 2022-2023.

Appeals

In 2022-23, we obtained 81 appeals in opposition to selections we had made.

The variety of appeals obtained in yr has decreased by 12.9% in comparison with 2021-22. We have resolved 98 (75%) in 2022-23. Of the appeals resolved in 2022-23, 72% of appeals had been upheld or partially upheld on selections made by the company.

The grounds of every enchantment are thought-about by our Appeals and Policy Teams earlier than being thought-about at an Independent Agricultural Appeals Panel (IAAP). For every enchantment, the IAAP think about whether or not the company has appropriately adopted the scheme guidelines, insurance policies, and laws of their implementation of the subsidy schemes. The panel make a advice to a Defra Minister, who makes the ultimate resolution on every enchantment.

Human rights disclosure

We have an obligation to make sure that all our actions respect the human rights of those that work for RPA, and for whom we offer companies.  There has been no litigation in opposition to RPA alleging a breach of the Human Rights Act 1998 throughout 2022-23.

Anti-corruption and anti-bribery issues

We won’t settle for any stage of fraud or corruption. All RPA workers should observe the related RPA conduct and propriety coverage, the civil service code and all different related procedures and insurance policies.

All circumstances of suspected fraud, bribery and corruption are totally investigated and handled appropriately. RPA is dedicated to defending public sources, income, property, info, and different property from any try, both by members of the general public, grant candidates, contractors, and sub-contractors or its personal workers, to achieve, by deceit, any monetary or different advantages.

Our Fraud Risk Management Strategy is aligned to the Defra group Counter Fraud Strategy and anti-bribery and corruption coverage. These apply to all RPA employees, whether or not everlasting, part-time, fastened time period or contingent employees.

Financial Review

Preparation of the Annual Report and Accounts

The Statement of Accounts stories the monetary outcomes for the yr from 1 April 2022 to 31 March 2023. It is ready in accordance with Section 7(2) of the Government Resources and Accounts Act 2000, the Accounts Direction issued by HM Treasury and the Financial Reporting Manual (FReM) revealed by HM Treasury.

Auditor

The Annual Report and Accounts have been audited by the Comptroller and Auditor General who’s appointed below the Government Resources and Accounts Act 2000. A notional cost of £246,000 (2021-22: £235,000) was incurred for the audit of the company’s Annual Report and Accounts and is now included throughout the Corporate overhead recharge (notional).

The Comptroller and Auditor General can also be the auditor of the European Agricultural Funds, which have a monetary yr ending 15 October. The money cost for the audit of those funds was £2.0 million (2021-22: £2.2 million) as disclosed in Note 3. This single cost from the Comptroller and Auditor General because the UK Certification Body covers the Comptroller and Auditor General’s personal work on co-ordination and the audit of the EAFRD for England, in addition to on-charges of labor carried out by the Auditors General for Scotland, Wales, and Northern Ireland.

Defra allocates operating prices budgets for EAFRD audits to the UK Co-ordinating Body an unbiased physique that makes use of the company’s finance system to report these prices. From 1 April 2023, UK Co-ordinating Body budgets transferred to Defra, therefore for 2023-24 onwards all UK Co-ordinating Body prices will likely be reported in Defra’s Annual Report and Accounts.

The auditor has not carried out any non-audit work for the company.

Financial Performance Review

RPA usually considers its monetary efficiency in two classes; operating prices representing monies wanted to offer the service required of the company by Defra and scheme prices associated to the funds the company administers.

The company’s operating prices are funded by Defra. Payments below EAGF (Pillar 1) and EAFRD (Pillar 2) schemes had been initially funded by the UK Exchequer, with subsequent reimbursement sought from the European Commission for scheme funds previous to the 16 of October 2020. From 16 October 2020, all Pillar 1 schemes are actually UK funded and it’s only Pillar 2 funds that the European Commission will proceed to fund till the top of their programmes. When the company is within the place of getting surplus money funds these are repaid to the UK Exchequer, web of short-term funding necessities.

Gross operating prices this yr of £174.0 million are greater than the earlier yr (2021-22: £157.1 million). Staff prices have risen year-on-year by £14.5 million because of 375 further common full time equal everlasting employees in 2022-2, employed on account of the event and implementation of  new schemes and companies delivered by the company. The company additionally obtained £4.0 million much less Corporate overhead recharge (notional), from Defra in 2022-23, principally because of an lower in info know-how prices £29.9 million (2021-22: £34.4 million), see Note 3.

Net operating prices had been £171.6 million (2021-22: £154.0 million) after permitting for earnings. Running cost earnings fell to £2.5 million in 2022-23 (2021-22: £3.1 million), this consisted almost totally of earnings for work on the British Cattle Movement Service on behalf of Defra of £2.4 million (2021-22: £3.0 million).

The UK authorities and devolved administrations in Scotland, Wales and Northern Ireland now straight fund a number of schemes which had been beforehand funded by the European Union. For these schemes, EU funding ceased on the finish of the EU’s agricultural funding yr on 15 October 2020. The principal schemes concerned, and their presentation inside these 2022-23 monetary statements are summarised within the desk beneath. To be aware that every one expenditure is now primarily UK funded, nonetheless the desk beneath is overlaying how the insignificant or residual quantities, ensuing from the winding up of beforehand EU funded schemes, are introduced in these accounts.

Several additional new schemes are presently being administered by the company, with spending below these schemes not anticipated to be recognised till the 2023-24 monetary yr. Those schemes are Delinked funds (which is able to change Basic Payment Scheme in England) and Sustainable Farming Incentive 2022 Scheme.

Overall funds made below schemes administered by the company in 2022-23 had been £1.8 billion (2021-22: £1.8 billion). Some £1.8 billion of those funds had been funded by the UK authorities (2021-22: £1.8 billion). Most of this expenditure was for Basic Payment Scheme 2022 claims of £1.4 billion (2021-22: £1.7 billion), but additionally included had been funds made for Countryside Stewardship 2022 of £271.4 million (2021-22: £99.8 million), Fruit & Vegetables funds of £40.5 million (2021-22: £39.4 million), School Milk funds of £5.7 million (2021-22: £4.6 million), Farming Equipment and Technology Fund amounting to £32.7 million (2021-22: £1.6 million), and Sustainable Farming Incentive totalling £12.5 million (2021-22: £nil), see Note 5.

During 2022-23, the company additionally made funds on new domestically funded schemes together with £14.2 million paid below the Lump Sum Exit Scheme which is designed to permit farmers who don’t want to transition to future schemes to exit early by promoting their total land holding. And £0.8 million paid out below Fly-tipping which is called a ‘Section 31’ grant to native authorities to ship and trial innovate options to counter fly-tipping.

The company obtained £11.3 million of earnings in 2022-23 (2021-22: £7.5 million), together with £4.8 million for Fruit & Vegetables (2021-22: £4.0 million) and £3.1 million for School Milk (2021-22: £3.0 million), see Note 5.

Funding offered to Scotland, Wales and Northern Ireland fell in 2022-23 to £99.7 million (2021-22: £165.7 million), see Note 6, because the devolved administrations now fund their very own Basic Payment Scheme straight.

The company additionally obtained £99.6 million (2021-22: £166.1 million) to offset the devolved administrations’ funding necessities. The general web scheme expenditure for the devolved administrations is due to this fact a deficit of £0.08 million. The company makes an attempt to get again all its EU funded expenditure again from the EU, so the web place relation to EU funded devolved administration’s exercise will principally be incurred due to prices incurred in managing foreign money receipts from the European Commission, see Note 6.

Financial place

Non-current property of the company have elevated by £4.6 million within the yr to 31 March 2023. The full yr’s depreciation and amortisation of £11.9 million (2021-22: £8.5 million), being charged was principally offset by £11.7 million of capital additions (2021-22: £4.1 million). The £4.6 million enhance is due to this fact defined by intangible property being revalued in 2022-23 by £4.5 million (2021-22: £2.7 million).

Most of the additions in 2022-23 (£11.6 million) had been intangible property acquired from Defra (2021-22: £4.1 million), through a non-cash switch by means of the General Fund.

Receivables have elevated by £157.0 million in comparison with 31 March 2022. This is essentially because of a enhance in monies due from the European Commission was which £212.8 million at 31 March 2023 (2021-22: £59.5 million). The enhance over the 31 March 2022 stability is because of RPA and Scotland exceeding the purpose at which the European Commission receipt the RPA on a quarterly foundation.

Payables due inside one yr have elevated by £30.7 million in comparison with 31 March 2022. This is especially because of £23.0 million of Rural Development advances now being due inside one yr (2021-22: £14.6 million) and a rise in scheme accruals to £57.4 million (2021-22: £42.3million).

The money stability of the company has dropped to £54.4 million (2021-22: £329.8 million). The money stability maintained by the company is ample to fulfill the instant funding wants of the company, and OPAs in respect of EU funded schemes the place the company acts because the UK funding physique. The company holds a decrease money stability than earlier years because of a funding switch to the core division previous to year-end, and the removing of any requirement to carry balances to handle probably massive Other Paying Agency funding requests.

Payables due over one yr have fallen by £16.1 million in comparison with 31 March 2022. The company reported £16.3 million of over one-year Rural Development Programme advance at 31 March 2022. At 31 March 2023, there aren’t any over one-year Rural Development Programme advances remaining, the company does nonetheless report £245k of over one-year IFRS 16 automobile lease liabilities, see Note 16.2.

Financial threat

The company will not be uncovered to any vital monetary dangers in administering UK funded scheme funds. In respect of residual EU funded scheme funds, the company is uncovered to 2 monetary dangers.

The first is a international change threat since scheme funds are made in sterling with reimbursements from the European Commission being obtained in euros. Consequently, any differential between the prevailing change price when reimbursement is obtained, and the scheme change charges fastened by the European Commission, will lead to an change achieve or loss for the company.

To mitigate this threat, the company enters ahead international change contracts for the EU funded UK Rural Development Programmes. As at 31 March 2023, these by-product contracts signify a web legal responsibility of roughly £4.8 million to the company (2021-22: web legal responsibility of £3.4 million). This valuation is according to international change actions in 2022-23 and offsets the corresponding potential positive aspects within the worth of the Euros receivable from the European Commission.

The second threat pertains to the potential that the European Commission could retrospectively select to not reimburse the company for funds made ought to there have been deemed to be any infringements in scheme laws. Such disallowances signify a excessive threat to the company as a result of complexity and extent of scheme laws. This threat is predicted to stay for a number of years till formal closure of the Rural Development programmes. Where schemes have now change into UK funded, the European Commission will proceed to audit and assess EU funded expenditure in prior years.

While for UK-funded schemes, disallowance threat is now not an element, the company nonetheless actively manages the dangers of non-compliance with scheme guidelines particularly since in lots of circumstances these will replicate a loss to the taxpayer, and irregular spend throughout the which means of Managing Public Money. The governance assertion describes the company’s method to threat on this space, and the Parliamentary accountability and audit report, offers transparency on the extent of non-compliance within the interval below evaluate.

Sustainability Report

The company’s sustainability journey is printed within the Highlights of the yr above. Our method to sustainability is aligned to the Greening Government Commitments (GGCs). The Greening Government Commitments set out the actions UK authorities departments and their associate organisations will take to scale back their impacts on the surroundings within the interval 2021 to 2025. This consists of lowering greenhouse gasoline emissions, the quantity of waste generated and water consumption. For 2022-23 reporting, 2017-18 is the baseline yr in opposition to which efficiency has been measured.

Many of the areas lined by the GGCs are centrally managed by Defra, for instance sustainable procurement and Information and Communication Technology (ICT) methods. Defra Digital Data and Technology Services (DDTS) have a Defra Group Sustainable Information Technology (IT) Strategy which is accessible on www.gov.uk. Defra group sustainable info know-how (IT) technique – GOV.UK (www.gov.uk)

The majority of GGCs are managed centrally by Defra together with commitments for client single use plastics, finite useful resource consumption, nature restoration and biodiversity motion planning. Defra additionally manages local weather change adaptation, sustainable development, rural proofing, air journey, and different pure useful resource consumptions. Consequently, all of those GGC’s are reported in Defra’s Annual Report and Accounts.

To minimise waste, many redundant ICT property have been offered, or donated to Citizen’s Advice and Computer Aid by Defra group. RPA helps Defra in delivering departmental sustainability goals which will likely be included in Defra’s 2022-23 Annual Report and Accounts. All the farming schemes funded by the company are designed the place attainable to enhance environmental sustainability.

Key efficiency indicators

RPA has achieved improved efficiency in opposition to the baseline yr of 2017-18, with decrease greenhouse gasoline emissions, decrease water consumption, and a slightly decrease share of waste recovered or reused. Following the worldwide pandemic, we proceed to maximise hybrid working, rationalise our property, occupancy and business journey which have positively contributed to a major discount in emissions.

Paul Caldwell
Chief Executive and Accounting Officer
14 July 2023

Accountability Report

Corporate Governance

Purpose

This part describes the governance, threat administration and inner management preparations for the company and the way our processes have advanced in response to a altering business surroundings and set of dangers over 2022-23.

Directors’ report

Governance framework

Defra’s Secretary of State has general accountability for RPA and is accountable to Parliament for all issues regarding the company. Ministerial accountability for the company has been assigned to the Minister of State (Minister for Food, Farming and Fisheries).

Tamara Finkelstein, Defra’s Permanent Secretary, is the Principal Accounting Officer and principal adviser to the Secretary of State on issues affecting Defra as a complete, together with useful resource allocations throughout the division and is liable for guaranteeing a excessive customary of monetary administration.

The Chief Executive Officer (CEO), Paul Caldwell, is designated the company’s Accounting Officer by the Principal Accounting Officer. He should be happy that the company has enough threat administration, monetary methods, and procedures in place to assist the environment friendly and economical conduct of its business, safeguards monetary propriety, regularity and fame and ensures business continuity. The CEO is line managed by the Defra Director General for Food, Biosecurity and Trade, David Kennedy.

Significant business pursuits

Details of firm directorships and different vital pursuits held by administrators of the company, which can battle with their administration obligations, are disclosed in Note 19 of the monetary statements.

As per the Civil Service Code, all colleagues are required to finish a business curiosity declaration to reveal the place there may be, or might perceived to be, a battle of curiosity between their function as an RPA worker and every other business or personal capability pursuits that they’re concerned with.

The business appointment guidelines apply to serving civil servants who intend to take up an out of doors function after leaving the Civil Service and to former civil servants for as much as two years after the final day of paid service. The coverage and course of is managed by Defra who publish particulars of appointments on a quarterly foundation.

The Agency Management Board

Chaired by a Non-Executive Director, the Agency Management Board (AMB) is liable for strategic oversight of the company’s efficiency, advising and difficult the CEO, and escalating points to Defra and ministers as applicable. It offers management within the supply of statutory company and business obligations, ensures that dangers are successfully recognized and managed, encourages enhancements in efficiency throughout the company and ensures efficient governance and management is in place for the company.

Key business at AMB conferences in 2022-23 included:

• the progress made in managing current fee schemes and the launch and administration of latest schemes and grants (Sustainable Farming Incentive and the evolution of Countryside Stewardship)
• monitoring of the monetary place of the company
• recruitment, retention, and the strategic deployment of useful resource throughout the complete complement of the company’s workload
• navigation of points and challenges together with modifications in governmental construction, coverage and industrial motion

AMB members are recruited and paid following public appointments steering set by the Cabinet Office.

The Audit and Risk Assurance Committee

Chaired by a Non-Executive Director, who can also be a member of AMB, the Audit and Risk Assurance Committee (ARAC) is liable for advising each AMB and the CEO (as Accounting Officer) on whether or not the company’s Annual Report and Accounts and inner management methods are totally compliant with present laws, requirements, and greatest practices. ARAC additionally opinions the company’s method to threat, fraud, and whistleblowing. RPA’s ARAC Chair can also be a member of the Defra Audit and Risk Assurance Committee.

Key business at ARAC conferences in 2022-23 included:

• evaluate of the company’s Annual Report and Accounts for compliance with present laws and applicable requirements
• common opinions of the company’s method to threat and fraud threat administration
• common opinions of progress in opposition to the Government Internal Audit Agency (GIAA) annual audit plan and outcomes of audit work undertaken
• contributing to the event of an built-in threat and assurance method

ARAC members are recruited and paid following public appointments steering set by the Cabinet Office.

Membership and Attendance

The Executive Team

The RPA is headed by the CEO and a workforce of Executive Directors. These people type the Executive Team (ET) that units the technique and route for the company and has the general authority to run the company on a day-to-day foundation. The Executive Team is dedicated to complying always with the Corporate Governance Code and its 5 rules of accountability, accountability, consciousness, impartiality and transparency.

Key business at ET conferences in 2022-23 included:

• day-to-day operating of the company together with finances delegations and guaranteeing general finances administration
• setting of coverage and route for the company based on the 5-Year technique and Defra’s strategic aims
• setting of threat urge for food and managing strategic threat
• reviewing individuals administration associated points for the company together with budgets, resourcing, and communication
• reviewing Defra Corporate Services supply on a quarterly foundation.

The company’s Executive Team remunerations are set by the Defra’s Remuneration Committee, which follows the pay steering and suggestions of the Cabinet Office Senior Salaries Review Body for all Senior Civil Servants (SCS). The pay award for company employees beneath SCS is about by Defra who agree the pay awards for all of the Defra group with the Cabinet Office.

ET membership all year long is listed beneath:

Relationship with Defra

Defra’s Executive Committee (ExCo) is liable for overseeing the strategic route and efficiency of the Defra group. Responsibilities for selections which have an effect on a couple of organisation, or set a precedent for the longer term, finally lie with ExCo. ExCo is supported by a number of key subcommittees and subcommittee members which embody CEOs of related supply our bodies and Defra administrators. RPA is a supply physique which straight stories into the Food, Biosecurity and Trade DG Group.

RPA has offered extensive ranging assist and functionality to varied cross Defra programmes and strategic initiatives in assist of Defra’s 25 Year Plan together with the Farming and Countryside Programme. We proceed to reveal a shared dedication to the achievement of Defra’s strategic ambitions and stand able to evolve and build on our present involvement.

Security, info threat and fraud

Security, info threat and fraud compliance to Information safety ISO/IEC 27001:2013 is audited yearly by the British Standards Institution (BSI). This is a requirement below Commission Regulation 885/2006 however with this requirement coming to an finish put up Brexit in 2024. Defra group safety conducts compliance opinions of the RPA, suppliers and delegated our bodies to make sure assurance of alignment to ISO/IEC 27002:2013. Under Commission Regulation 907/2014 there was a requirement to be licensed to ISO/IEC 27001:2013 from 16 October 2016. ISO/IEC 27001:2013 certification was first achieved for the company in August 2015 with recertification in August 2018 and once more in May 2021 with the audit advice that the company is recertified for an extra three years. This requirement for formal ISO27001 compliance will likely be re-assessed going ahead within the mild of necessities put up Brexit and the transfer to GovAspositive and the National Cyber Security Centre’s (NCSC) Cyber Assessment Framework (CAF).

Throughout the yr work has continued to assist compliance, with audits of Cambridge and Newcastle places of work by the BSI as a part of the continuing certification regime. A brand new senior civil service stage Senior Security Advisor (SSA) has been appointed to guide on bodily, personnel and cyber safety throughout the Defra group, together with RPA. The SSA is liable for managing safety dangers, offering assurance and recommendation on safety points, and advising the Permanent Secretary, Executive Team and the Audit and Risk Assurance Committee on the continued effectiveness of controls.

Defra group Security managed the annual 2022 Departmental Security Health Check submission which assessed compliance in opposition to the minimal baseline requirements for bodily, personnel and cyber safety. This was a joint submission that lined the Defra group (together with RPA). Several safety enchancment workstreams have been applied in 2022-23 to handle amongst different issues points with legacy purposes and outdated person accounts. This work will proceed into subsequent yr to assist ongoing compliance in opposition to the federal government practical customary GovS007: Security.

Information dealing with

The RPA operates a multidisciplinary governance construction to make sure that private information is processed to evolve with the legislation and HM Government info administration requirements.

As agreed by the RPA CEO, the company, guided by the Defra Protection Officer (DPO), continued the work of embedding the Information Commissioner Office (ICO) Accountability Framework into the company’s construction of controls and certainly used it to populate the Information Governance Model (IGM) cascaded by means of the community of knowledge asset house owners (IAOs). Throughout the embedding of the Accountability Framework, periodic briefing was offered to the RPA Security Risk Owner (SRO) and the Defra DPO, with an finish of yr report offered to the RPA CEO.

To assist the company’s SRO and the IAOs, the collective efforts of the RPA Data Protection Assurance Manager, Defra Security, Business Continuity, Data Integrity and Governance and the Information Rights Team function a focus for the IAOs to acquire steering on the efficient administration of knowledge threat throughout the outlined threat tolerance. The IAOs are regionally accountable for compliance and managing threat, however extra complicated points can be referred to the Information Governance Business Unit Group and, as want be, escalated to the Finance and Assurance Senior Sponsorship Group.

When individuals be part of the RPA, the necessity for compliant info dealing with is highlighted within the induction course of. This was strengthened throughout the annual Security and Data Protection on-line course offered by Civil Service Learning. The Security and Data Protection coaching, which features a certificates of completion, is really helpful for all company colleagues so they’re geared up to reveal their competence in private information processing. The Data Protection Assurance Manager additionally offered role-based coaching for the IAOs.

Personal information incidents

During 2022‐2023, a complete of 208 private information breach incidents had been reported for investigation in relation to United Kingdom General Data Protection Regulation (UK GDPR) compliance. None had been deemed to have fulfilled the standards for reporting to the Information Commissioner’s Office.

Fraud referrals

Fraud referrals are assessed by the RPA Fraud Referral workforce to think about whether or not a possible fraud has occurred. The company takes applicable restoration motion on circumstances if the advice is made to get well funds.

The desk above consists of identified, detected fraud referral circumstances solely. The company additionally acknowledges that some fraud will, by its nature, stay undetected. The company due to this fact estimates the extent undetected fraud and error with scheme expenditure. This is disclosed within the Parliamentary Accountability and Audit part.

Statement of Accounting Officer’s obligations

Under the Government Resources and Accounts Act 2000, HM Treasury has directed the RPA to arrange for every monetary yr an announcement of accounts within the type and on the idea set out within the Accounts Direction. The accounts are ready on an accruals foundation and should give a real and truthful view of the state of affairs of the RPA and of its expenditure and earnings, Statement of Financial Position and money flows for the monetary yr.

In making ready the accounts, the Accounting Officer is required to adjust to the necessities of the Government Financial Reporting Manual and particularly to:

• observe the Accounts Direction issued by HM Treasury, together with the related accounting and disclosure necessities, and apply appropriate accounting insurance policies on a constant foundation
• make judgements and estimates on an affordable foundation
• state whether or not relevant accounting requirements as set out within the Government Financial Reporting Manual have been adopted
• disclose and clarify any materials departures within the monetary statements
• put together the monetary statements on a going concern foundation

The Accounting Officer has taken all of the steps essential to familiarise himself with any related audit info and to determine that the company’s auditor is conscious of that info. As far as he’s conscious, there isn’t a related audit info of which the company’s auditor has no data.

The Accounting Officer confirms that the Annual Report and Accounts as a complete is truthful, balanced and comprehensible and that he takes private accountability for the Annual Report and Accounts and the judgments required for figuring out that it’s truthful, balanced and comprehensible.

The Permanent Secretary appointed Paul Caldwell, the company Chief Executive Officer, as Accounting Officer of the RPA. The obligations of an Accounting Officer embody accountability for the propriety and regularity of the general public funds for which the Accounting Officer is answerable, for retaining correct data and for safeguarding the RPA’s property, as set out in Managing Public Money revealed by HM Treasury.

Governance Statement

As Accounting Officer, I’m liable for sustaining a strong system of inner management that helps the achievement of the company’s insurance policies, goals and aims, whereas safeguarding public funds and company property. This is in accordance with the obligations assigned within the HM Treasury publication, Managing Public Money.

Governance framework

Defra’s Executive Committee is chaired by the Permanent Secretary and includes of the Defra Directors General, together with the Group Directors for Finance, HR and Communications and the Chief Executive Officer of the Environment Agency. The committee offers a strategic steer, makes selections the place applicable on cross-network points, opinions plans and progress on enhancing Defra’s capability and functionality for the longer term, and oversees cross departmental initiatives to tell strategic selections by ministers on their priorities and spending plans.

RPA’s Agency Management Board (AMB) is liable for guaranteeing that efficient preparations are in place to offer assurance on threat administration, governance, and inner management. As a part of this the AMB is required to arrange an Audit and Risk Assurance Committee (ARAC) chaired by an unbiased Non-Executive member to offer unbiased recommendation and make sure that this committee offers assurance on threat. AMB is predicted to guarantee itself of the effectiveness of the interior management and threat administration methods.

The Audit and Risk Assurance Committee is liable for advising each the AMB and CEO as Accounting Officer on all issues regarding strategic processes for threat and management, the governance assertion, accounting insurance policies, the Annual Report and Accounts, assurance of inner and exterior audits (together with work carried out by the Certification Body) and anti-fraud insurance policies. The ARAC Chair can also be a member of Defra’s Audit and Risk Assurance Committee. The RPA is headed by the CEO and a workforce of Executive Directors who collectively type the Executive Team that units the route for the company and has the general authority to run the company on a day-to-day foundation.

Internal Controls

Risk overview

The company has ensured applicable threat administration and inner management preparations have been in place all year long as much as the date of this report. Continued complete evaluation of threat throughout all areas and totally different ranges of the business has been undertaken all year long. The threat evaluation method has a hierarchy whereby there are strategic, operational, and tactical ranges of threat evaluation inside all areas. The evaluation of dangers the place the company has a dependency on third events, reminiscent of Defra group company companies suppliers, has additionally been a characteristic of that threat evaluation.

At the strategic stage the danger evaluation has seen a mixture of short-term dangers featured as an company stage concern for a single quarter and people which were a part of the general image of strategic threat evaluation throughout the monetary yr. In 2022-23, shorter-term dangers included the transition to the Defra group HR, operating prices and provider fee system; outcomes of the spending evaluate; transitioning to a brand new blended working method. Each of those dangers have been mitigated throughout the yr to the extent that they’re now not particular dangers featured within the present company stage threat evaluation.

In December 2022, the Executive Team undertook a full reassessment of the company stage dangers. The output of this train has led to a extra strategic description of the important thing challenges the company faces at this level. Executive Director threat house owners have been progressing full assessments of the brand new dangers for which they’re accountable.

The strategic stage threat evaluation covers areas by which the RPA is primarily accountable for and liable for the mitigation, and different dangers whereby there’s a must work carefully with supply companions to offer efficient mitigation.

Specific dangers requiring RPA and supply companions to offer joint mitigation embody dangers describing the necessity to successfully mitigate fraud and error in scheme expenditure, the availability of IT companies to RPA, guaranteeing company service supply meets RPA’s wants and guaranteeing the supply implications of wider coverage selections are totally understood and impacted.

Areas which are extra primarily focussed on RPA’s skill to mitigate have included the effectiveness of workforce planning to build applicable functionality and capability, guaranteeing the supply of a top quality service for our clients and the supply of the company’s key scheme targets.

The longer-term threat of attaining Net Zero commitments has and continues to be a characteristic of the company stage threat evaluation.

Fraud threat administration

The administration of fraud threat has been a major space of focus for RPA in 2022-23. The focus has been primarily pointed on the efficient administration of fraud and error inside scheme expenditure.

A spread of exterior drivers which embody the transition from EU to exchequer funded schemes, widespread focus throughout authorities departments on fraud and error in grant expenditure and growth of latest grant schemes has led to a major evolution within the extent to which fraud threat administration is turning into embedded into the business-as-usual processes of the company.

The company has recognised the danger related to ineffective fraud and error threat administration throughout scheme expenditure and the results of not with the ability to reveal that grant funding has been successfully utilised to ship meant aims, that worth for money within the administration of these schemes is achieved and the attainable consequence of certified annuals stories and accounts.

The company has responded, initiating a spread of constant works that can present a extra thorough understanding of the fraud and error dangers, what’s inflicting these threat and what different interventions and controls might be utilized to mitigate these dangers. Whilst the danger stays, there’s a optimistic route of journey that can permit an elevated demonstration of management in future years.

The company defines fraud and error (collectively “irregularities”) in scheme expenditure to be any expenditure which isn’t in compliance with the phrases and situations of a given scheme. Fraud is a selected subset of such circumstances in which there’s deliberate intent to make a monetary achieve by making or receiving such expenditure. Further particulars of irregularities are given within the Parliamentary Accountability and Audit part.

Disallowance threat administration

Disallowance dangers are frequently reviewed with up to date forecasts, recommendation and progress stories offered to the core division’s Disallowance Strategy governance teams. Adherence with the technique is monitored by means of the company’s Finance and Assurance Sub Committee. Quarterly stories on the danger of disallowance are additionally introduced to the ARAC to make sure visibility of the potential monetary publicity and the influence of the company’s mitigation.

The worth of EU expenditure continues to scale back and expenditure on EU legacy schemes past 31 March 2023 is predicted to be almost wholly UK funded, which in flip impacts on the danger of disallowance. The Executive Team considers any vital disallowance threat and any proposals for business modifications are thought-about from a disallowance threat standpoint as a part of formal governance earlier than implementation might be agreed. The company has established working teams to develop proportionate measures for enhancing management deficiencies, taking account of the danger of additional irregular expenditure. This will embody consideration of dangers arising from the audit of the company’s EU accounts and any Emphasis of Matter affecting European Commission funded scheme expenditure. These findings may even be included into the company’s assurance technique monitoring actions, which is able to enhance future fee controls.

The company helps the Defra disallowance technique and responded to the modifications ensuing from EU exit, with a selected focus in the direction of both justifying our method to regulate or by means of tactical exercise that used analytical proof to calculate the monetary dangers related to audit observations.

The company works carefully with the UK Co-ordinating Body, devolved administrations and supply companions (Environment Agency, Forestry Commission, and Natural England) to establish and mitigate potential causes of disallowance. We had been in a position to return to on the bottom audits visits in 2022-23 which allowed for simpler presentation of proof. Our bilateral discussions with the European Commission audit groups and the EU Conciliation Body continued by means of video calls which proved to be efficient and provided higher worth of money. Our proactive and constructive engagement with the European Commission exterior auditors has ensured that any hostile audit findings are understood. This method has been profitable in lowering the quantities of disallowance utilized.

Effectiveness of threat administration

The Executive Team holds accountability for the administration of essentially the most vital dangers the company faces. Each company stage threat recognized is owned by one of many Executive Team. There is an overarching threat administration course of for escalation of dangers. Operational dangers have been managed on a tactical stage with a view to meet supply aims.

Quarterly strategic threat classes are held with the Executive Team with a view to evaluate and agree the company’s overarching threat priorities. Risk assurance classes are held at every ARAC assembly who in flip report on key dangers to the Agency Management Board. External threat escalations to the core division are made by means of the Defra System Committees as required.

The Audit and Risk Assurance Committee have challenged and supported the continuing growth of threat administration by means of the reporting that’s introduced to every ARAC assembly, primarily when it comes to how we’re in a position to present assurance that company stage dangers are being managed successfully. We have applied an method of threat deep-dives and are enterprise additional work to reinforce this method.

Effectiveness of whistleblowing preparations

The core division encourages workers to make use of the whistleblowing procedures to lift considerations about previous, current or imminent conduct throughout the Defra group or conflicts with the Civil Service Code. The core division applied the Civil Service Employee Policy in January 2013 throughout Defra and its govt companies (together with RPA) and up to date the coverage in December 2016.

There had been three reported circumstances throughout the monetary yr 2022-23 being managed throughout the whistleblowing course of. The RPA 2022 People Survey outcomes point out that most individuals in RPA are assured that in the event that they raised a priority, it could be handled correctly. The company will talk the coverage on an ongoing foundation.

Internal Audit opinion

The RPA’s Head of Internal Audit offers an annual opinion primarily based on the interior audit work accomplished throughout the yr and attendance at key governance boards, in keeping with the audit plan agreed with the Executive Team and with the RPA’s Audit and Risk Assurance Committee.

All modifications to the plan throughout the yr had been evaluated in opposition to RPA’s key dangers to make sure ample protection was maintained to tell her opinion. Her ‘Moderate’ opinion for 2022-23 displays that while there are areas that might be improved, RPA’s frameworks for governance, threat administration and management are largely working successfully in delivering RPA’s aims and in administering the fee schemes for which it’s accountable. This consists of administration of related legacy disallowance dangers, the transition from EU funding preparations to home funding and the event of different schemes by means of the Farming and Countryside Programme (FCP). It additionally recognises that RPA maintained operations throughout strike exercise by evoking business continuity preparations.

Of the 22 assurance stories delivered, one was advisory and didn’t carry an assurance score. One of the remaining 21 opinions reported assurance that was lower than ‘Moderate’. This associated to poor implementation of actions to handle points from an ISO 27001:2013 Information Compliance evaluate of the Defra Digital Data and Technology Services (DDTS) Software Development perform, by Defra group Security (DgS) Compliance workforce. These actions associated to the Microsoft Dynamics 365 (D365) utility on which the RPA depends for useful resource and scheme accounting and had been to handle: poor implementation of quarterly system entry checks; ignorance on system administration actions; and no formal course of for sustaining the D365 Role-Based Access Control Matrix. These actions are depending on exercise by DDTS however solely one of many 5 actions has been accomplished in full, with three partially full and one totally excellent. Discussions are in progress to expedite the required exercise.

Significant progress has been made in growing a productive relationship between RPA and the company companies capabilities, significantly DDTS, leading to some beforehand longstanding DDTS actions being closed in 2022-23. However, there stays an ongoing dependency on company service actions for managing a few of RPA’s strategic dangers and the Intelligent Client roles inside RPA will play an vital half in managing that dependency.

Compliance with governance codes

An casual evaluate carried out in opposition to the NAO ‘Corporate Governance in Central Government Departments: Code of Good Practice 2011 Compliance Checklist’ indicated that RPA complies with the rules for an company of our measurement, standing, and authorized framework.

Effectiveness of governance preparations

Governance preparations are efficient and proportionate given the extent of exercise presently being undertaken by the company. Defra’s Executive Committee (ExCo) is supported by a number of subcommittees (with RPA being a part of the Food, Biosecurity and Trade, and Environment methods) whose focus is on guaranteeing supply of outcomes, becoming a member of up coverage growth and operations to make sure the core division is offering the very best service to clients. RPA has representatives at each methods committees.

Framework doc

RPA’s framework doc, setting out the broad framework inside which the company operates is on the Gov.uk web site: Rural Payments Agency framework doc – GOV.UK (www.gov.uk)

Effectiveness of board & committee efficiency

During 2022-23, Executive Directors held common conferences with the Chair of the Agency Management Board to maintain her knowledgeable about what was taking place throughout the company, and to debate the effectiveness of the Board. Both the Agency Management Board and the Audit and Risk Assurance Committee undertook effectiveness opinions in 2022-23. And have confirmed that the standard of the knowledge and information they obtained in 2022-23, was ample to tell their selections and opinions, and to allow them to function successfully.

Managing vital challenges in 2022-23

Changing paths on schemes

The yr 2022-23, has been vital for our company as we labored with the Farming and Countryside Programme to develop and ship important companies to the agricultural sector. This yr has seen shut collaboration with Defra colleagues to introduce and ship new schemes and grants. Customer and stakeholder suggestions has been important in shaping our method to design and simplify our service and linked processes.

Following a profitable pilot over 2021-22, the SFI22 utility window was launched in June 2022, permitting all BPS eligible farmers to use on-line. For farmers in current agri-environmental schemes, reminiscent of Countryside Stewardship and Environmental Stewardship, and people who farm on widespread land, we’ve fastidiously managed the roll out and offered steering all through the method. As an company who has primarily delivered schemes with fastened utility home windows previously, the transition to the rolling home windows of the Sustainable Farming Incentives (SFI) got here with its challenges.

Nevertheless, our groups have labored tirelessly to make sure that farmers had been nicely supported and suggestions on the SFI utility course of is optimistic.

By December 2022, roughly 1,600 eligible purposes for SFI had been obtained, and our managed rollout for these on different agri-environment schemes and commons farmers continued. We have continued to work with Defra to develop the vary of actions being provided to clients, for instance on the Oxford Farming Conference, the place the Minister of State, The Rt Hon Mark Spencer, introduced the introduction of administration funds for SFI agreements. SFI23 will see further requirements with various ranges and funds launched, offering extra assist to the trade. As a part of SFI22 we additionally delivered the Annual Health and Welfare Review which offers farmers with the chance to obtain funding for a vet to go to their farm and perform a well being evaluate of their animals. As of the top of March 2023, we had obtained 1,271 purposes with 37.3% having a settlement in place.

Besides our land schemes, we’ve additional developed our grants providing and functionality by building upon the Farming Investment Fund (FIF) initially rolled out in 2021. In December 2022, we launched the Slurry Infrastructure grant as a part of FIF, which permits pig and cattle farmers to use for grants of as much as £250,000 to enhance their slurry storage thereby, serving to to forestall water and air air pollution. Our Farming Equipment and Technology Fund, which permits farmers to improved productiveness utilizing trendy gear and know-how, has once more been well-liked paying out over £32 million of grants in spherical one alone. The company can also be totally engaged in supporting the core division’s future method to grants and the creation of a future grants hub.

The rural sector has not been resistant to the cost-of-living scenario, and we’ve performed an element in supporting our farmers by delivering BPS advance funds in July 2022, to help farmers with their money movement. This was a problem for the company because it concerned further workload alongside our current scheme and grant aims. Nonetheless, we had been in a position to present essential funds to over 82,000 farmers and landowners throughout the nation months sooner than had been conventional.

Level of irregularity

Over the previous variety of years, the company has been in a interval of transition the place our schemes have been transferring away from adherence to EU guidelines and right into a domestically funded method. As we navigate by means of this era of change it has been recognized that the extent of irregular funds which will consequence from fraud and error throughout the current and newly shaped agri-environment schemes has the potential to be greater than these discovered inside direct funds. Historically, agri-environmental schemes, reminiscent of Countryside Stewardship, have had a better price of fraud and error than these of direct funds. This is as a result of agri-environment schemes are extra complicated which will increase the potential for better buyer error and lack of know-how leading to failure to fulfil their scheme obligations. As Agri-environment schemes change into a better proportion of RPA’s funds to our farmers, there’s a threat of a rise within the stage of irregular funds, which we’re addressing.

Significant measures have been put in place. The company is growing a brand new counter fraud and error method for scheme expenditure. This method will use information and intelligence to assist farmers keep away from error and can use the company’s information evaluation capabilities to measure fraud and error extra successfully and establish actions to handle the problems discovered.

As nicely because the change in method and better deal with prevention, we’ve sought to simplify our schemes, update our steering, and ensured colleagues are expertly educated in guiding our farmers as they proceed to take-up our new scheme choices.

Where overpayments are recognized for any cause, the company seeks restoration of money owed in full to guard taxpayer money. Recovery strategies employed embody interception of future scheme funds, settlement of prolonged compensation phrases, and finally authorized motion the place warranted, applicable and providing worth for money to the taxpayer.

Cost-of-living

Internally, we recognise the challenges confronted by at RPA colleagues and as an organisation dedicated to investing in our individuals, we’ve labored alongside Defra to refresh our employment supply and implement interim enhancements to assist colleagues in managing their financial challenges.

Remuneration and Staff Report

Purpose

The remuneration and employees report offers info on individuals within the company and units out the entity’s remuneration coverage for administrators, stories on how that coverage has been applied and units out the quantities awarded to administrators. It additionally offers particulars on remuneration and employees that Parliament and others see as vital to accountability, as set out in Chapter 6 of the Companies Act 2006 and SI 2013 No.1981 and amended by HM Treasury’s Financial Reporting Manual.

Remuneration report

Although prices for the CEO and the members of ET are included within the RPA’s annual accounts, they’re formally employed by Defra. The framework for remunerating the CEO and ET, as for all Senior Civil Servants (SCS), is about by the Prime Minister following unbiased recommendation from the Senior Salaries Review Body. Further particulars about this physique might be discovered at www.ome.uk.com. The Cabinet Office advises Defra in March or April every year of the federal government’s response to the Senior Salaries Review Body’s suggestions and produces steering for departments to observe. Defra develops its SCS pay technique inside this Cabinet Office framework, guaranteeing that the general pay awards are throughout the cost ceiling allowed.

Consolidated pay and non-pensionable, efficiency associated pay awards for members of ET are primarily based on their efficiency assessed relative to all others of their peer group inside Defra.

Consolidated awards typically differ relying on the extent of efficiency and the relative place of every individual of their pay vary. Members of the SCS are eligible to be thought-about for particular person ranges of bonus as non-pensionable, non-consolidated variable pay (NCVP). NCVP is efficiency associated and is paid in arrears within the monetary yr after that by which it was earned. During 2022-23, NCVP for 2021-22 efficiency bonuses was paid to roughly 25% of the SCS and was capped at £10,000. NCVP values, knowledgeable by every particular person’s appraisal grade had been paid inside Cabinet Office pointers. The desk of wage and non-cash advantages proven on this report consists of NCVP paid to the CEO, ET and Non-Executive Directors. Departments even have discretion to make in-year non-consolidated award funds to recognise excellent contribution for as much as 40% of SCS employees. These are restricted below Cabinet Office steering to a most of £5,000.

Service contracts

The Constitutional Reform and Governance Act 2010 requires civil service appointments to be made on benefit on the idea of truthful and open competitors. The Recruitment Principles revealed by the Civil Service Commission specify the circumstances when appointments could also be made in any other case. Further details about the Civil Service Commission might be discovered at www.civilservicecommission.org.uk.

The CEO and ET are everlasting civil servants. The Executive Directors are required to provide three months’ discover below the phrases of their contracts. Our Non-Executive Directors are appointed on fastened time period contracts with a discover interval of 1 month.

The employment of the CEO and members of ET could also be terminated in accordance with regular civil service procedures. Early termination, aside from for misconduct, would consequence within the particular person receiving compensation as set out within the Civil Service Compensation Scheme.

Compensation for lack of workplace (audited)

No compensation quantities had been paid to Executive Directors throughout the yr. Compensation for depart not taken, the place applicable, is included throughout the wage figures within the remuneration desk.

Salary

‘Salary’ consists of gross wage; additional time; reserved rights to London weighting or London allowances; recruitment and retention allowances; personal workplace allowances and every other allowance to the extent that it’s topic to UK taxation. This report relies on accrued funds made by the company and thus recorded in these accounts.

Benefits in type (audited)

The financial worth of advantages in type covers any advantages offered by the company and handled by HM Revenue and Customs as a taxable emolument. In 2022-23, no director (2021-22: none) had any taxable advantages permitted by the Civil Service Management Code.

Bonuses (audited)

Bonuses are primarily based on efficiency ranges attained and are made as a part of the appraisal course of. The bonuses reported in 2022-23 relate to efficiency in 2021-22 and the comparative bonuses reported for 2021-22 relate to the efficiency in 2020-21. This is as a result of the appraisal course of doesn’t permit ample time to accrue for particular person bonuses regarding efficiency within the reporting yr’s monetary statements.

Fair pay disclosure (audited)

Reporting our bodies are required to reveal the proportion change from the earlier monetary yr for each wage and efficiency pay in respect of the best paid director and the common share change in respect of workers of the organisation taken as a complete.

The Non-Executive Directors are excluded from this disclosure as their work is part-time by nature and their inclusion would have a distorting influence on the calculation.

Mean worker remuneration consists of company employees, contractors, and company companies administrators.

Reporting our bodies are required to reveal the connection between the remuneration of the highest-paid director of their organisation and the decrease quartile, median and higher quartile remuneration of the organisation’s workforce.

The banded remuneration of the highest-paid director within the monetary yr 2022-23 was £115,000-£120,000 (2021-22: £110,000-£115,000). This was 4.7 occasions (2021-22: 4.6) the median remuneration of the workforce, which was £25,017 (2021-22: £24,618).

In 2022-23, three (2021-22: two) contractors and no everlasting workers (2021-22: nil) obtained remunerations greater than the best paid director.

Total remuneration consists of wage, non-consolidated efficiency associated pay and advantages in type. It doesn’t embody severance funds, employer pension contributions and the money equal switch worth of pensions.

The median remuneration, twenty fifth percentile pay remuneration and the seventy fifth percentile pay remuneration relies on annualised, full-time equal remuneration as on the finish of the monetary yr.

The median pay ratio has marginally elevated from 2021-22. In addition, in keeping with the general public sector pay remit steering, on 1 July 2021 annual pay elevated by £250 for workers incomes lower than £24,000 full time equal each year and there have been will increase to the pay ranges at AA and National AO grades.

The discount in remuneration within the seventy fifth percentile is due to recruitment of everlasting workers to scale back interim employees ranges. The lower in remuneration within the twenty fifth percentile is due to recruitment specializing in extra senior posts.

The banded remuneration for workers within the company ranged from £20,000-£25,000 to £130,000-£135,000 (2021-22: £15,000-£20,000 to £130,000-£135,000). These figures exclude the Non-Executive Directors.

Remuneration (together with wage) and pension entitlements (audited)

The remuneration and the pension pursuits of the Non-Executive Directors and the Executive Directors of the company are detailed within the following tables:

Pension advantages (audited) info

Non-Executive Directors usually are not entitled to a pension so usually are not included throughout the following desk.

Civil service pensions

Pension advantages are offered by means of the Civil Service pension preparations. From 1 April 2015 a brand new pension scheme for civil servants was launched; the Civil Servants and Others Pension Scheme or alpha, which offers advantages on a profession common foundation with a traditional pension age equal to the member’s State Pension Age (or 65 if greater). From that date all newly appointed civil servants and the vast majority of these already in service, joined alpha. Prior to that date, civil servants participated within the Principal Civil Service Pension Scheme (PCSPS). The PCSPS had 4 sections, three offering advantages on a last wage foundation (traditional, premium, or traditional plus) with a traditional pension age of 60, and one offering advantages on a complete profession foundation (nuvos) with a traditional pension age of 65.

These statutory preparations are unfunded with the cost of advantages met by monies voted by Parliament every year. Pensions payable below traditional, premium, traditional plus, nuvos and alpha are elevated yearly in keeping with Pensions Increase laws. Existing members of the PCSPS remained within the PCSPS after 1 April 2015 in the event that they had been inside 10 years of their regular pension age on 1 April 2012. However, these members will switch from their PCSPS legacy scheme on 1 April 2022 and can change into alpha. Those who on 1 April 2012 had been between 10 years and 13 years and 5 months from their regular pension switched into alpha someday between 1 June 2015 and 1 February 2022.

Because the Government plans to take away discrimination recognized by the courts in the way in which that the 2015 pension reforms had been launched for some members, it’s anticipated that, in the end, eligible members with related service between 1 April 2015 and 31 March 2022 could also be entitled to totally different pension advantages in relation to that interval and this may occasionally have an effect on the Cash Equivalent Transfer Values proven on this report, see beneath.

All members who switched to alpha have their PCSPS advantages ‘banked’, with these with earlier advantages in one of many last wage sections of the PCSPS having these advantages primarily based on their last wage after they depart alpha. The pension figures quoted for officers present pension earned in PCSPS or alpha as applicable. Where the official has advantages in each the PCSPS and alpha the determine quoted is the mixed worth of their advantages within the two schemes. Members becoming a member of from October 2002 could go for both the suitable outlined profit association or a ‘money purchase’ stakeholder pension with an employer contribution (partnership pension account).

Benefits in traditional accrue on the price of 1/eightieth of ultimate pensionable earnings for every year of service. In addition, a lump sum equal to a few years preliminary pension is payable on retirement. For premium, advantages accrue on the price of 1/sixtieth of ultimate pensionable earnings for every year of service. Unlike traditional, there isn’t a computerized lump sum. Classic plus is actually a hybrid with advantages for service earlier than 1 October 2002 calculated broadly as per traditional and advantages for service from October 2002 labored out as in premium. In nuvos a member builds up a pension primarily based on his pensionable earnings throughout their interval of scheme membership.

The partnership pension account is a stakeholder pension association. The employer made a basic contribution of between 8.00% and 14.75% (relying on the age of the member) right into a stakeholder pension product chosen by the worker from a panel of suppliers, on 31 March 2023 that supplier was Legal & General Mastertrust. The worker didn’t must contribute, however the place they did contribute, the employer will match these as much as a restrict of three% of pensionable wage (along with the employer’s basic contribution). Employers additionally contributed an extra 0.5% of pensionable wage to cowl the cost of centrally offered threat profit cowl (dying in service and in poor health well being retirement).

From 1 April 2022, all company workers selecting to be in a civil service pension scheme, are within the alpha pension scheme. And will earn on the finish of every scheme yr (31 March) a pension account credit score equal to 2.32% of their pensionable earnings in that scheme yr. This accrued pension is up to date in keeping with Pensions Increase laws. Benefits in alpha build up in an identical technique to nuvos, besides that the accrual price in 2.32%. In all circumstances members could decide to surrender (commute) pension for a lump sum as much as the bounds set by the Finance Act 2004.

The accrued pension quoted is the pension the member is entitled to obtain after they attain pension age, or instantly on ceasing to be an energetic member of the scheme if they’re already at or over pension age. Pension age is 60 for members of traditional, premium, and traditional plus, 65 for members of nuvos, and the upper of 65 or State Pension Age for members of alpha. The pension figures quoted for officers present pension earned in PCSPS or alpha as applicable. Where the official has advantages in each the PCSPS and alpha the determine quoted is the mixed worth of their advantages within the two schemes however be aware that a part of that pension could also be payable from totally different ages.

Further particulars in regards to the civil service pension scheme preparations might be discovered on the Civil Service web site www.civilservicepensionscheme.org.uk.

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised worth of the pension scheme advantages accrued by a member at a selected time limit. The advantages valued are the member’s accrued advantages and any contingent partner’s pension payable from the scheme. A CETV is a fee made by a pension scheme or association to safe pension advantages in one other pension scheme or association when the member leaves a scheme and chooses to switch the advantages accrued of their former scheme. The pension figures proven relate to the advantages that the person has accrued due to their whole membership of the pension scheme, not simply their service in a senior capability to which disclosure applies.

The figures embody the worth of any pension profit in one other scheme or association which the member has transferred to the Civil Service pension preparations. They additionally embody any further pension profit accrued to the member on account of their shopping for further pension advantages at their very own cost. CETVs are labored out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and don’t take account of any precise or potential discount to advantages ensuing from Lifetime Allowance Tax which can be due when pension advantages are taken.

Real enhance in CETV

This displays the rise in CETV that’s funded by the employer. It doesn’t embody the rise in accrued pension because of inflation, contributions paid by the worker (together with the worth of any advantages transferred from one other pension scheme or association) and makes use of widespread market valuation components for the beginning and finish of the interval.

Staff report

Staff prices and numbers are disclosed in Note 2 and audited as required by FReM 6.2.1.

Senior employees by pay-band

The desk beneath offers the variety of Senior Civil Servants or equal throughout the company by pay-band, the desk doesn’t embody the Directors which are Defra workers.

Staff composition

We are working to outline the longer term workforce profile that aligns with new alternatives following the UK’s exit from the European Union. We use a blended method to resourcing utilising a mixture of everlasting, fastened time period and momentary company employees to stability sources and supply in opposition to peaks and troughs in workload. We have labored to scale back reliance on massive numbers of momentary company employees in favour of everlasting roles by means of recruitment campaigns to stabilise the workforce. Consequently, our dependency on momentary company employees has fallen within the yr as mirrored within the desk beneath.

For 2022-23, our common full time equal workforce was:

At 31 March 2023, we had a mean full time equal workforce of two,648 (2021-22: 2,635) as follows:

The gender variety of our completely employed employees and Non-Executive Directors was:

During 2022-23, the company had fifteen momentary secondees loaned out to Defra group on brief time period loans. The company additionally loaned two secondees from Defra group (2021-22: none) and one momentary secondee from the House of Commons, (2021-22: two). The web restoration of secondment prices £211k is reported in Note 2, below recoveries in respect of secondments.

People Forum and our People Plan

People Forum is a decision-making physique that varieties a part of RPA’s governance. Its function is to offer an inclusive and collaborative area for progressing individuals initiatives and engagement throughout the company. All workers are welcome to contribute to People Forum.

The discussion board is designed to harness the power, ardour, and creativity of our individuals to ship focused, particular actions and wider initiatives designed to extend scale and attain and to alter tradition and attitudes.

The People Plan is an announcement of the company’s ambition to make the company an excellent place to work. The plan promotes a tradition of inclusivity, with alternatives for all, underpinned by supportive studying and growth. The People Forum is designed to convey the People Plan to life and to form the company to be future prepared by means of our trusted fame.

We will make sure the company is nicely positioned for alternatives arising from the 25 Year Environmental Plan and agricultural transition by means of rising our organisational functionality.

Develop our studying and growth technique

We proceed to develop our studying and growth technique and framework as we’ve now introduced our studying and growth finances again in-house from Defra. Our framework includes of management and administration, career particular and technical coaching and is underpinned by our values – to be seen, partaking, respectful, inclusive, trusted, accountable and supportive. It is supported by a system holding all our studying, coaching, and growth info.

Developing our skilled functionality as operational supply specialists

We allow our individuals to affix and profit from the biggest of all of the Civil Service Professions with 250,000 members throughout all authorities departments, by means of a brand new Operational Delivery Profession technique. Our CEO is Head of Profession for Operational Delivery for the entire of the Defra group.

This affords our individuals coaching and growth programmes, profession pathways, networking alternatives and an actual sense of belonging. We have the next aims for our people who find themselves a part of this group and can proceed to develop this work in future years:

• Build a thriving group of follow, recognised, and revered for its important function in public service supply
• Create a dynamic workforce who’re future-ready, by serving to our individuals develop, progress, and really feel a part of a group
• Instil a way of pleasure and fervour amongst our individuals, guaranteeing they really feel valued for his or her work
• Inspire full dedication from our individuals to furthering their very own expertise
• Ensure our individuals are passionate in regards to the individuals they serve and all the time have the need to do higher and be higher, all through their careers
• Enhance our buyer expertise experience throughout our company in order that we ship the perfect companies
• Celebrate the influence we’ve and reward distinctive supply

Design a collective settlement to fulfill our altering workforce wants

We present our dedication to creating the company an inclusive place to work, the place everybody is inspired and supported to grasp their full potential by means of guaranteeing that our workforce is nicely managed and inexpensive, and contemplating resourcing and deployment at an company stage.

Celebrating our success

We launched our first RPA individuals awards in 2020. These awards rejoice and recognise our individuals which are Visible, Engaging, Respectful, Inclusive, Trusting, Accountable, and Supportive and who ship with collaboration and innovation.

The award scheme has been used all year long to recognise and reward in-year achievements of RPA individuals who have gone above and past their regular duties to assist profitable supply of business aims.

The company’s now annual, individuals awards are hosted just about which has improved the visibility, levelled the alternatives for all to attend and improved recognition and attendance.

We are early adopters of a brand new recognition platform which has allowed social and monetary recognition, by means of the lens of our individuals values while streamlining our method to ‘Celebrating our success’ and persevering with to build on our tradition.

Attendance administration

The RPA’s annual working days misplaced determine for the 2022-23 yr was 6.2 (2021-22: 7.1).

Employee engagement

The RPA’s worker engagement index in 2022 was 57% (2021: 62%).

We recognise the necessity to regularly enhance individuals engagement by means of our employees engagement survey outcomes and feedback, so are embracing new methods of gathering suggestions and views. We have elevated engagement by means of the pandemic by means of common CEO and Executive Team all-agency calls, utilizing interactive, easy-to-use query and reply and polling software program purposes, which have change into an integral a part of employees engagement with RPA’s senior workforce and workforce. We will proceed to trace influence and engagement exercise by means of our individuals plan.

Expenditure on contractors and company workforce (audited)

The company is dedicated to utilizing everlasting individuals when attainable however the nature of our operations means we additionally require the experience of momentary contractors and an company workforce, see Note 2.

The company had consultants on its payroll in 2022-23 for £0.6 million (2021-22: £0.8 million) as reported in employees prices in Note 2. And company employees on its payroll of £4.3 million (2021-22: £4.3 million).

Agency employees had been sometimes decrease grade people used on a short-term momentary foundation to course of scheme funds and supply cowl for some business-as-usual duties.

The desk beneath demonstrates that our momentary workforce prices have dropped yr on yr:

Expenditure prices on out-sourced consultancy corporations in 2022-23 was £1.6 million (2021-22: £0.4 million). These prices have been incurred straight by the company and are categorised by their nature inside IT prices and Non-IT skilled companies in Note 3 of those accounts. Most consultancy prices incurred by the company, are paid by Defra and recharged to the company within the Corporate overhead recharge (notional) in Note 3 of those accounts.

Health, Safety and Wellbeing

The company’s Health, Safety and Wellbeing Unit (HSWU) function is to plan, introduce, monitor and evaluate the protecting and preventative measures that the RPA observe to make sure all workers are secure at work and in good psychological well being and that the company is legislatively compliant. The unit works with all individuals from all areas of the business to minimise operational dangers, losses, occupational well being circumstances, accidents and accidents. The HSWU will organize threat assessments to establish any scenario that poses a stage of risk to life, well being, company property or the surroundings. The unit works carefully with the Defra estates division whose function is to make sure that the buildings utilized by the company are match for function and secure to work in.

Due to COVID-19 the HSWU issued in April 2020 up to date steering for the well being and security of homeworkers, the company will proceed to supply distant workstation assessments for these workers that request them.

Staff turnover (audited)

The company makes use of Department Turnover (employees leaving the Civil Service or a selected division) as outlined by [email protected] in calculating its employees turnover.

For 2022-23 and 2021-22, the company’s turnover is calculated because the variety of leavers throughout the yr divided by the common of employees in put up over the interval. The common employees in put up is calculated as the common of headcount at first and finish of the yr.

Leavers embody retirements, dying in service, finish of appointments, in addition to dismissals and resignations and leavers below obligatory and voluntary redundancies.

Employee relations and tribunals

There was no Civil Service Appeal Board (CSAB) closed and settled employment tribunals between 1 April 2022 and March 2023, (2021-22: none). The commerce union engagement framework was launched in April 2014 and is now firmly embedded throughout the company. Facility time utilized by the commerce union representatives has been throughout the most launched by the Cabinet Office in 2013.

Employment points and recruitment follow

We have continued to recruit throughout this difficult interval and have decreased our time to rent by means of profitable adaptation of our recruitment processes, introducing video interviews and pre-recorded interviews. We proceed our workforce stabilisation by means of massive recruitment campaigns, utilising a spread of resourcing choices together with fastened time period appointments, apprenticeships, and everlasting recruitment.

Defra HR continues to offer an professional service to RPA, managing vacancies all through their life cycle from inception to realisation and supply full administrative capabilities for resourcing. This has ensured that RPA continues to be compliant with the Civil Service Commissioner’s Recruitment Principles.

Pay coverage

RPA is a part of the Defra departmental pay bargaining unit. In April 2023, the federal government revealed its 2023-24 pay steering. This yr’s highlights are:

• departments could make common pay awards as much as 4.5%
• departments even have further flexibility to pay as much as an extra 0.5% the place they’ll reveal focusing on of the pay award to these of their “lower pay bands”, departments decide how they apply the focused ingredient

Defra stay dedicated to pursuing a pay flexibility case with the Cabinet Office and HM Treasury to handle recruitment and retention points and are trying into methods the teams pay flexibility case might be included throughout the authorities steering. Defra are partaking with commerce unions throughout this course of.

Exit packages (audited)

The company provided no voluntary redundancies to workers in 2022-23 (2021-22: none). Exit packages are reported in employees prices in Note 2.3 of those accounts.

Diversity points

We proceed to work to make sure we’ve a various and inclusive tradition the place everybody feels they belong and are valued. Our dedication to offering alternatives for all, attracting, and growing numerous and motivated individuals, specializing in strengths, is tracked by means of our People Plan.

A socio-mobility survey was launched throughout Defra group in 2019 to assemble information to underpin the method to enhancing socio-mobility. In March 2020, new socio-economic background questions had been added to the individuals administration system portal. These questions assist to determine the backgrounds of workers, in order that we will see general how inclusive we’re of people that come from decrease socio-economic backgrounds. As a consequence, RPA launched a Social Mobility Strategy which is being adopted throughout the entire of Defra group on the advice of the Defra group Social Mobility Board.

We stay a part of the Defra group Equality, Diversity, and Inclusion Strategy to make sure optimistic motion is taken on 4 key themes the place individuals really feel revered, valued, supported, and engaged. We have supported the cross-government actions for 2022, together with: Celebration of civil partnerships, Celebration of Transgender Day, World Autism Awareness Week, World Hearing Day, Holocaust Memorial Day, and International Women’s Day.

We have an Inclusion Leadership Group and teams representing our numerous workforce, and the actions from these teams feed right into a central dashboard which is being created by the Group Equality Diversity Inclusion (EDI) workforce. The leads for these teams additionally signify RPA on the Defra boards.

Equal remedy in employment and occupation

We are working carefully with cross-government initiatives to draw and encourage candidates from a lot wider, numerous teams reminiscent of care leavers, ex-offenders, and ex-military. This scheme permits these from specified teams who meet “basic” minimal choice standards to have assured interviews for junior roles throughout the Civil Service.

RPA, as a part of Defra group, continues to work with a spread of employees networks that assist equal remedy in employment and occupation. Project Race, developed in 2019, is one in every of these networks. It goals to enhance outcomes for colleagues of ethnic minorities in relation to illustration, efficiency administration and engagement.

In assist of equal remedy in recruitment, the company continues to make use of the Civil Service Guaranteed Interview Scheme for these individuals informing us of a incapacity or well being situation. The company additionally follows the ‘blind’ utility course of to make sure that variety info will not be disclosed to emptiness holders/interviewers at any time throughout the utility course of and due to this fact keep away from unconscious bias coming into the recruitment course of. Interview panels are educated in features of ‘unconscious bias’ and its influence on resolution making.

The company induction packs direct starters to EDI assist and assist networks. Workplace adjustment passports, workstation assessments and occupational well being referrals are all totally utilised by our workforce.

The company does every thing attainable to encourage and assist its disabled workers. We are dedicated to giving disabled workers the identical alternatives to develop and progress as non-disabled workers, ensuring there aren’t any limitations in attaining their full potential. The company won’t unlawfully discriminate in opposition to disabled individuals in any side of employment together with the recruitment course of, coaching, and promotional and profession growth alternatives.

Trade union relationships

Working relationships with the commerce union have remained optimistic and constructive, offering invaluable enter and assist into initiatives all year long.

Facility time publication necessities

In accordance with the necessities of the Trade Union (Facility Time Publication Requirements) Regulations 2017, the next tables summarise commerce union officers of workers and facility time utilization throughout the yr 2022-23.

Off-payroll appointments

In line with the suggestions of a evaluate of Tax Arrangements of Public Sector Appointees revealed by HM Treasury in May 2012 the RPA put in place controls to make sure its non-payroll individuals incomes better than £245 per day are contractually obliged to guarantee the company that they’re assembly their tax obligations. Monitoring continues to happen with common stories being equipped to Defra.

All extremely paid off-payroll employees engaged at any level throughout the yr ended 31 March 2023, incomes £245 per day or better:

For all off-payroll current engagements as of 31 March 2023, for greater than £245 per day and that final for longer than six months:

For any off-payroll engagements of Board members, and/or, senior officers with vital monetary accountability, between 1 April 2022 and 31 March 2023:

Senior officers with vital monetary accountability are outlined as all board stage executives, non-executive administrators, and finance administrators.

Parliamentary Accountability and Audit

Purpose

This part describes how the company meets key accountability necessities to Parliament.

Regularity of expenditure (audited)

The company stories losses and particular funds:

During 2022-23, there have been no losses which individually exceeded £0.3 million. During 2021-22, the company recognized cost of hedging and international change money owed totalling £2.1 million owed to the company by different paying companies, that weren’t more likely to be paid by the counterparty. These money owed associated to historic actions between 2015-2020. The company took the choice to deal with these as money losses in 2021-22.

Included inside 2021-22 money losses is a reversal of £1.2 million, which arose when the company ceased to recognise money losses on circumstances the place Defra, in its capability because the managing authority for sure schemes, recognised these losses. The 2021-22 particular funds determine features a reversal of an ex-gratia fee regarding a retrospective declare on widespread land, of £0.3 million that the company had beforehand recognised as a particular fee however now not thought-about to be ex-gratia.

Cash losses signify identified, particular circumstances the place a financial loss has been incurred, for instance when overpayments made to particular clients haven’t been recoverable. The company additionally estimates the worth of undetected irregularities inside UK funded schemes for which the company has incurred materials web expenditure throughout the yr, and the place the character of these schemes is such that there’s a possible threat of undetected irregularities arising. Such undetected irregularities are estimates, and by their nature can’t be attributed to particular clients, nor can motion to get well them be pursued.

Estimates are made by analyzing the outcomes of randomly chosen visits and distant sensing procedures and extrapolating the irregularity charges discovered by these visits. In assessing whether or not the outcomes of visits point out fraud or error, and in quantifying the financial worth of the loss to the taxpayer, the company refers back to the particular actions required by agreements in place with claimants. Those agreements replicate the Secretary of State’s wider scheme guidelines in accordance with the Agriculture Act and related laws overlaying every scheme examined.

The company is enterprise ongoing work to higher perceive the underlying causes of fraud and error inside scheme expenditure, with the aim of constructing focused interventions to scale back non-compliance. Such interventions might for instance embody communications to clients claiming for actions the place there have been traditionally excessive error charges, or the simplification of scheme guidelines the place attainable. This work is deliberate to incorporate detailed assortment of information on the causes of irregularities, nonetheless widespread causes of irregularities are identified to incorporate measurement errors (by which clients inadvertently over declare portions, areas or lengths of things claimed for) and points surrounding land parcels not being on the claimant’s disposal throughout the interval regarding their declare.

The desk beneath summarises most certainly estimated irregularity charges and values by scheme.

The above desk comprises estimates primarily based on a random pattern of visits and is due to this fact topic to a level of statistical uncertainty. The estimates are ready to inside a said vary of accuracy, generally known as confidence intervals. 95% confidence intervals are introduced beneath.

Where practical to take action, the company adjusts estimates for the consequences of identified and possible measurement errors. However, the figures introduced are estimates, and have a number of limitations. For instance, judgement should sometimes be employed by area officers in figuring out whether or not or not a breach of scheme guidelines exists, and additional judgements decide whether or not or not this has resulted in irregular expenditure. The tables beneath reveal the impact of those potential measurement errors upon the estimated values introduced. The share modifications chosen for this sensitivity evaluation are judged to be consultant of the attainable stage of measurement errors, primarily based upon administration data of the operation of schemes and upon insights generated by high quality management processes.

For instance, Countryside Stewardship Revenue spending presently contributes 54.30% of the overall estimated irregularity worth. If the financial worth of the estimated irregular expenditure for this scheme (presently £6,846,000) had been to extend by 10% this could result in the general estimated irregularity price of 0.74% growing by 0.04% to 0.78% (equating to round an extra £685,000 of irregular expenditure).

Government Functional Standards

The mandate for the usage of practical requirements is offered by Managing Public Money (MPM) and endorsed by Ministers by means of the Declaration on Government Reform. Each customary units expectations for what must be completed, and why, regarding the work inside its scope. The practical requirements comprise obligatory, advisory and permitted parts and makes use of energetic language to set expectations (‘shall’, ‘should’, ‘may’, ‘might’ and many others) for every ingredient. An general evaluation for every customary is then product of ‘Best’, ‘Better’, ‘Good’, ‘Developing’. ‘Good’ implies that all obligatory parts, and a very powerful advisory parts, are met. To be good, higher or greatest, RPA would wish to fulfill all the standards for that stage throughout the capabilities.

The Government Functional Standards for RPA are largely managed by Defra who make the judgements as house owners of the assorted practical requirements and the related company companies. As a part of the companies supply mannequin, core division Heads of Function guarantee compliance assessments are in place for these Functional Standards that are used to evaluate future growth areas. Assessments for companies obtained presently vary from “developing” to “good”. Going ahead we are going to proceed to enhance and work collaboratively with Defra colleagues and be taught from what we’ve achieved this monetary yr, to stretch our ambition. This will assist each Defra and RPA to proceed to enhance the assessments.

Fees and costs (audited)

The company has no materials earnings charges and costs.

Remote contingent liabilities (audited)

The company has no distant contingent liabilities which are required to be reported to Parliament below Managing Public Money.

Long time period expenditure developments

An in depth commentary on present and prior yr efficiency is included throughout the Performance Analysis part.

Paul Caldwell
Chief Executive and Accounting Officer
14 July 2023

The certificates and report of the Comptroller and Auditor General to the House of Commons

Opinion on monetary statements

I certify that I’ve audited the monetary statements of the Rural Payments Agency for the yr ended 31 March 2023 below the Government Resources and Accounts Act 2000.

The monetary statements comprise: the Rural Payments Agency’s

• Statement of Financial Position as at 31 March 2023;
• Statement of Comprehensive Net Expenditure, Statement of Cash Flows and Statement of Changes in Taxpayers’ Equity for the yr then ended; and
• the associated notes together with the numerous accounting insurance policies.

The monetary reporting framework that has been utilized within the preparation of the monetary statements is relevant legislation and UK adopted worldwide accounting requirements.

In my opinion, the monetary statements:

• give a real and truthful view of the state of Rural Payments Agency’s affairs as at 31 March 2023 and its web working cost for the yr then ended; and
• have been correctly ready in accordance with the Government Resources and Accounts Act 2000 and HM Treasury instructions issued thereunder.

Opinion on regularity

In my opinion, in all materials respects, the earnings and expenditure recorded within the monetary statements have been utilized to the needs meant by Parliament and the monetary transactions recorded within the monetary statements conform to the authorities which govern them.

Basis for opinions

I carried out my audit in accordance with International Standards on Auditing (UK) (ISAs UK), relevant legislation and Practice Note 10 Audit of Financial Statements and Regularity of Public Sector Bodies within the United Kingdom (2022). My obligations below these requirements are additional described within the Auditor’s obligations for the audit of the monetary statements part of my certificates.

Those requirements require me and my employees to adjust to the Financial Reporting Council’s Revised Ethical Standard 2019. I’m unbiased of the Rural Payments Agency in accordance with the moral necessities which are related to my audit of the monetary statements within the UK. My employees and I’ve fulfilled our different moral obligations in accordance with these necessities.

I imagine that the audit proof I’ve obtained is ample and applicable to offer a foundation for my opinion.

Conclusions regarding going concern

In auditing the monetary statements, I’ve concluded that the Rural Payments Agency’s use of the going concern foundation of accounting within the preparation of the monetary statements is acceptable.

Based on the work I’ve carried out, I’ve not recognized any materials uncertainties regarding occasions or situations that, individually or collectively, could solid vital doubt on the Rural Payments Agency’s skill to proceed as a going concern for a interval of a minimum of twelve months from when the monetary statements are authorised for challenge.

My obligations and the obligations of the Accounting Officer with respect to going concern are described within the related sections of this certificates.

The going concern foundation of accounting for the Rural Payments Agency is adopted in consideration of the necessities set out in HM Treasury’s Government Financial Reporting Manual, which requires entities to undertake the going concern foundation of accounting within the preparation of the monetary statements the place it’s anticipated that the companies which they supply will proceed into the longer term.

Other info

The different info includes info included within the Annual Report however doesn’t embody the monetary statements and my auditor’s certificates and report thereon. The Chief Executive as Accounting Officer is liable for the opposite info.

My opinion on the monetary statements doesn’t cowl the opposite info and, besides to the extent in any other case explicitly said in my certificates, I don’t specific any type of assurance conclusion thereon.

My accountability is to learn the opposite info and, in doing so, think about whether or not the opposite info is materially inconsistent with the monetary statements or my data obtained within the audit, or in any other case seems to be materially misstated.

If I establish such materials inconsistencies or obvious materials misstatements, I’m required to find out whether or not this provides rise to a cloth misstatement within the monetary statements themselves. If, primarily based on the work I’ve carried out, I conclude that there’s a materials misstatement of this different info, I’m required to report that truth.

I’ve nothing to report on this regard.

Opinion on different issues

In my opinion the a part of the Remuneration and Staff Report to be audited has been correctly ready in accordance with HM Treasury instructions made below the Government Resources and Accounts Act 2000.

In my opinion, primarily based on the work undertaken in the middle of the audit:

• the components of the Accountability Report topic to audit have been correctly ready in accordance with HM Treasury instructions made below the Government Resources and Accounts Act 2000;
• the knowledge given within the Performance and Accountability Reports for the monetary yr for which the monetary statements are ready is according to the monetary statements and is in accordance with the relevant authorized necessities.

Matters on which I report by exception

In the sunshine of the data and understanding of the Rural Payments Agency and its surroundings obtained in the middle of the audit, I’ve not recognized materials misstatements within the Performance and Accountability Reports.

I’ve nothing to report in respect of the next issues which I report back to you if, for my part:

• Adequate accounting data haven’t been stored by the Rural Payments Agency or returns enough for my audit haven’t been obtained from branches not visited by my employees; or
• I’ve not obtained the entire info and explanations I require for my audit; or
• the monetary statements and the components of the Accountability Report topic to audit usually are not in settlement with the accounting data and returns; or
• sure disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual haven’t been made or components of the Remuneration and Staff Report to be audited will not be in settlement with the accounting data and returns; or
• the Governance Statement doesn’t replicate compliance with HM Treasury’s steering.

Responsibilities of the Chief Executive as Accounting Officer for the monetary statements

As defined extra totally within the Statement of Accounting Officer’s Responsibilities, the Chief Executive as Accounting Officer is liable for:

• sustaining correct accounting data;
• offering the C&AG with entry to all info of which administration is conscious that’s related to the preparation of the monetary statements reminiscent of data, documentation and different issues;
• offering the C&AG with further info and explanations wanted for his audit;
• offering the C&AG with unrestricted entry to individuals inside Rural Payments Agency from whom the auditor determines it essential to acquire audit proof;
• guaranteeing such inner controls are in place as deemed essential to allow the preparation of monetary statements to be free from materials misstatement, whether or not because of fraud or error;
• guaranteeing that the monetary statements give a real and truthful view and are ready in accordance with HM Treasury instructions made below the Government Resources and Accounts Act 2000;
• guaranteeing that the annual report, which incorporates the Remuneration and Staff Report, is ready in accordance with HM Treasury instructions made below the Government Resources and Accounts Act 2000; and
• assessing the Rural Payments Agency’s skill to proceed as a going concern, disclosing, as relevant, issues associated to going concern and utilizing the going concern foundation of accounting except the Accounting Officer anticipates that the companies offered by the Rural Payments Agency won’t proceed to be offered sooner or later.

Auditor’s obligations for the audit of the monetary statements

My accountability is to audit, certify and report on the monetary statements in accordance with the Government Resources and Accounts Act 2000.

My aims are to acquire cheap assurance about whether or not the monetary statements as a complete are free from materials misstatement, whether or not because of fraud or error, and to challenge a certificates that features my opinion. Reasonable assurance is a excessive stage of assurance however will not be a guarantee that an audit carried out in accordance with ISAs (UK) will all the time detect a cloth misstatement when it exists. Misstatements can come up from fraud or error and are thought-about materials if, individually or within the mixture, they might moderately be anticipated to affect the financial selections of customers taken on the idea of those monetary statements.

Extent to which the audit was thought-about able to detecting non-compliance with legal guidelines and laws, together with fraud

I design procedures in keeping with my obligations, outlined above, to detect materials misstatements in respect of non-compliance with legal guidelines and laws, together with fraud. The extent to which my procedures are able to detecting non-compliance with legal guidelines and laws, together with fraud is detailed beneath.

Identifying and assessing potential dangers associated to non-compliance with legal guidelines and laws, together with fraud

In figuring out and assessing dangers of fabric misstatement in respect of non-compliance with legal guidelines and laws, together with fraud, I:

• thought-about the character of the sector, management surroundings and operational efficiency together with the design of the Rural Payments Agency’s accounting insurance policies, key efficiency indicators and efficiency incentives.
• inquired of administration, Rural Payments Agency’s head of inner audit and people charged with governance, together with acquiring and reviewing supporting documentation regarding the Rural Payments Agency’s insurance policies and procedures on:
  • figuring out, evaluating and complying with legal guidelines and laws;
  • detecting and responding to the dangers of fraud; and
  • the interior controls established to mitigate dangers associated to fraud or non-compliance with legal guidelines and laws together with the Rural Payments Agency’s controls regarding the Rural Payments Agency’s compliance with the Government Resources and Accounts Act 2000, and Managing Public Money;
• inquired of administration, Rural Payments Agency’s head of inner audit and people charged with governance whether or not:
  • they had been conscious of any cases of non-compliance with legal guidelines and laws;
  • they’d data of any precise, suspected, or alleged fraud,
• mentioned with the engagement workforce and the related inner specialists, together with our IT audit workforce relating to how and the place fraud may happen within the monetary statements and any potential indicators of fraud.

As a results of these procedures, I thought-about the alternatives and incentives which will exist throughout the Rural Payments Agency for fraud and recognized the best potential for fraud within the following areas: income recognition, posting of bizarre journals, complicated transactions, bias in administration estimates and fraud and error inside scheme expenditure. In widespread with all audits below ISAs (UK), I’m required to carry out particular procedures to answer the danger of administration override.

I obtained an understanding of the Rural Payments Agency’s framework of authority and different authorized and regulatory frameworks by which the Rural Payments Agency function. I targeted on these legal guidelines and laws that had a direct impact on materials quantities and disclosures within the monetary statements or that had a basic impact on the operations of the Rural Payments Agency. The key legal guidelines and laws I thought-about on this context included Government Resources and Accounts Act 2000, Managing Public Money, Supply and Appropriation (Main Estimates) Act 2022, grant expenditure laws, employment legislation, pensions laws and tax laws.

I thought-about the Rural Payment Agency’s estimate of the danger of fraud and error throughout the scheme expenditure inhabitants.

Audit response to recognized threat

To reply to the recognized dangers ensuing from the above procedures:

• I reviewed the monetary assertion disclosures and testing to supporting documentation to evaluate compliance with provisions of related legal guidelines and laws described above as having direct impact on the monetary statements;
• I enquired of administration, the Audit and Risk Assurance Committee regarding precise and potential litigation and claims;
• I reviewed minutes of conferences of these charged with governance and the Board; and inner audit stories;
• in addressing the danger of fraud by means of administration override of controls, I examined the appropriateness of journal entries and different changes; assessed whether or not the judgements on estimates are indicative of a possible bias; and evaluated the business rationale of any vital transactions which are uncommon or outdoors the traditional course of business; and
• different audit procedures conscious of the danger of fraud and irregularity inside scheme expenditure.

I additionally communicated related recognized legal guidelines and laws and potential dangers of fraud to all engagement workforce members together with inner specialists and remained alert to any indications of fraud or non-compliance with legal guidelines and laws all through the audit.

An additional description of my obligations for the audit of the monetary statements is positioned on the Financial Reporting Council’s web site at: www.frc.org.uk/auditorsresponsibilities. This description varieties a part of my certificates.

Other auditor’s obligations

I’m required to acquire proof ample to provide cheap assurance that the expenditure and earnings recorded within the monetary statements have been utilized to the needs meant by Parliament and the monetary transactions recorded within the monetary statements conform to the authorities which govern them.

I talk with these charged with governance relating to, amongst different issues, the deliberate scope and timing of the audit and vital audit findings, together with any vital deficiencies in inner management I establish throughout my audit.

Report

I’ve no observations to make on these monetary statements.

Gareth Davies
Comptroller and Auditor General
18 July 2023

Financial Statements

This part offers monetary statements of the reportable actions of the Rural Payments Agency throughout the yr.

Account Statements

Statement of Comprehensive Net Expenditure for the Year to 31 March 2023

The Notes type a part of these accounts.

Statement of Financial Position as at 31 March 2023

The Notes type a part of these accounts.

Paul Caldwell
Chief Executive and Accounting Officer
14 July 2023

Statement of Cash flows for the Year to 31 March 2023

The Notes type a part of these accounts.

Statement of Changes in Taxpayers’ Equity for the Year to 31 March 2023

The Notes type a part of these accounts.

Notes to the Accounts

1. Statement of accounting insurance policies

The monetary statements have been ready in accordance with the 2022-23 Government Financial Reporting Manual (FReM) and the Accounts Direction issued by HM Treasury in accordance with Section 7(2) of the Government Resources and Accounts Act 2000.

The accounting insurance policies contained within the FReM apply International Financial Reporting Standards (IFRS) as tailored for the general public sector. Where the FReM permits a alternative of accounting coverage, the accounting coverage which has been judged to be most applicable to the actual circumstances of the company for the aim of giving a real and truthful view has been chosen. They have been utilized persistently within the present and previous yr in coping with gadgets thought-about materials in relation to the accounts.

The monetary statements are ready on a going concern foundation on a monetary foundation and are according to the FReM 2022-23 continued provision of service foundation.

1.1 Accounting conference

These accounts have been ready below the historic cost conference, modified to account for the revaluation of intangible property, and sure monetary property and liabilities, the place materials.

1.2 Property, plant and gear

Property, plant and gear is recognised on a depreciated historic cost foundation because of being low in worth. Property, plant and gear property are reviewed yearly for indicators of impairment. The company has set a capitalisation threshold of £10,000. Below this threshold prices are charged on to the Statement of Comprehensive Net Expenditure. From 1 April 2021, property bought as a bunch, every costing above £500 however totalling greater than £500,000, have been capitalised.

1.3 Intangible property

Intangible property are initially recognised at cost, together with their deemed cost to Defra the place they’re transferred from our mum or dad division. Subsequently they’re measured at depreciated historic cost modified by annual revaluations utilizing applicable value indices issued by the UK Office of National Statistics, as a proxy for Depreciated Replacement Cost (the truthful worth choice relevant to those non-actively-traded property). The unrealised ingredient is credited/debited to the Revaluation reserve as proven within the Statement of Changes in Taxpayers’ Equity, see Note 14. Intangible property are reviewed yearly for indicators of impairment.

Intangible property comprise internally developed purposes and bespoke IT software program tasks, licences and packages developed by third events. Software tasks being developed are capitalised as growth expenditure and handled as capital expenditure (however not amortised or revalued till the software program is totally developed and introduced into use). Transfer of property developed by Defra are offered to the company through the General Fund. The company has set a capitalisation threshold for software program tasks of £100,000 and £10,000 for software program licences. From 1 April 2021, software program licences property bought as a bunch, every costing above £500 however totalling greater than £500,000, have been capitalised. At 31 March 2023, the company had no capitalised software program licences. Licences and associated customisations are solely recognised the place they signify identifiable property managed by the company, fairly than being purely a part of service contracts.

1.4 Depreciation and amortisation

Depreciation and amortisation are offered at charges estimated to put in writing off the valuation of property, plant and gear, and intangibles on a straight-line foundation, over the estimated helpful lifetime of the asset, making an allowance for residual worth (if it applies). Assets are depreciated or amortised from the month after they’re out there to be used.

Estimated helpful lives at preliminary recognition are usually within the following ranges:

1.5 Impairment

Impairments are recognised when the recoverable quantity of non-current property falls beneath their carrying quantity.

In line with an adaption within the FReM, any everlasting diminution within the worth of an asset because of clear consumption of financial profit or service potential must be recognised in full as an impairment loss within the Statement of Comprehensive Net Expenditure. However, to align the stability within the Revaluation reserve with that which might have resulted by means of strict utility of IAS 36, an quantity as much as the worth of the impairment is transferred to the General Fund for the person asset involved.

Downward revaluations, ensuing from modifications in market worth, solely lead to impairment the place the asset is revalued beneath its historic cost carrying quantity. In these circumstances, the accounting remedy is as for every other impairment, with quantities being first set in opposition to any collected stability within the revaluation reserve, and any quantity along with this being recognised and recorded within the Statement of Comprehensive Net Expenditure.

1.6 Leased property

The company has applied IFRS16 with impact from 1 April 2022, utilizing the adaptions and interpretations set out by HM Treasury within the 2022-23 Financial Reporting Manual (FReM). As mandated by the Financial Reporting Manual a cumulative catch-up foundation has been used and prior yr comparatives haven’t been restated.

This transition has eliminated the separation between working and finance leases, as an alternative recognising leases in scope of IFRS 16 on the Statement of Financial Position as proper of use property and corresponding lease liabilities. Liabilities have been calculated utilizing the current worth of excellent funds at 1 April 2022 and the opening cost of the suitable of use property is calculated to equal lease liabilities adjusted for any lease prepayments or accruals that existed instantly previous to 1 April 2022.

The Statement of Comprehensive Net Expenditure will replicate associated costs for the depreciation of the suitable of use property and curiosity on the lease legal responsibility instead of rental bills and proceed to replicate irrecoverable VAT the place relevant on any leases as HM Treasury steering on the appliance of IFRS 16 states this could not type a part of the preliminary measurement of the suitable of use property.

The company has recognized leased automobiles which fall into IFRS 16 categorisation. This remedy has been utilized to all automobile leased besides these that are short-term (lower than 12 months) which is able to proceed to be handled as bills on a straight-line foundation within the Statement of Comprehensive Net Expenditure throughout the lease time period. The influence of IFRS 16 for these leased automobiles to the Statement of Financial Position at 1 April 2022 is to extend proper of use property by £0.3 million and lease liabilities by the identical worth. The company has utilized a price of curiosity taken from the lease contract for automobiles. Cost has been used as an applicable proxy for present worth in current use of automobiles as they’ve a comparatively brief helpful life.

1.7 Defra properties occupied by the company

For 2022-23, the complete cost of occupation of buildings which are both owned or leased by Defra is mirrored throughout the Statement of Comprehensive Net Expenditure as a part of ‘Corporate overhead recharge (notional)’, see Note 3. The prices are decided by Defra primarily based on proportionate occupation of the properties and embody charges, utilities, administration overheads, and related capital costs. For Defra leasehold properties this additionally consists of rental prices.

The Defra Management Committee estates technique states that the default place is that lease breaks are exercised. Defra undertakes an in depth annual evaluate on the fabric lease exits to verify this judgement holds true. This has the implication of recognising the lease dedication (and any depreciation) to the lease break date. If nonetheless, the proof means that it’s unlikely particular person lease breaks will likely be exercised, the dedication is assumed to be till the top of the lease.

1.8 Agency scheme expenditure and earnings

Schemes administered on behalf of Defra

Defra core accounts recognise the expenditure and earnings for schemes over which it acts as Managing Authority, thereby demonstrating management of coverage and prioritisation of spend. Payments made by the company on such schemes (for instance rural growth expenditure below the Rural Development Programme for England) are reported within the company accounts as actions by means of the General Fund. See Note 10.1 for additional particulars of accounting remedy for the Rural Development Programme for England.

Where RPA makes funds on behalf of one other authorities physique which is appearing because the controlling entity, expenditure and earnings for such schemes will likely be recognised by them. Assets and liabilities relating to those schemes are reported within the company’s Statement on Financial Position together with a corresponding intra-governmental stability.

All different schemes

Expenditure and earnings regarding all different schemes is recognised within the accounts of the company and is introduced inside Note 5. The accounting insurance policies making use of to expenditure below UK Exchequer funded schemes, and to each earnings and expenditure below European Commission funded schemes are described individually beneath.

UK Exchequer funded schemes

For all UK Exchequer funded schemes, expenditure is recognised by the company when each of the next standards are judged to be met:

a) The buyer has fulfilled their efficiency obligations in keeping with the relevant scheme guidelines and laws; and
b) The worth of the declare might be reliably estimated by the company.

This generally leads to expenditure being recognised on receipt of claims from farmers. However, expenditure could also be recognised later when claims are obtained prematurely of different underlying efficiency obligations being accomplished by the client. This is the case for the Basic Payment Scheme, the place recognition is the later of the receipt of claims, and the 15 May eligibility date when claimants will need to have land at their disposal, as a result of making a declare is a essential efficiency obligation with a view to obtain fee below the scheme. Similarly, expenditure regarding Sustainable Farming Incentive income agreements is recognised on the latter receipt of a buyer’s annual declaration and the ultimate day of their settlement yr, as submitting an annual declaration is a efficiency obligation for claimants.

The company enters into multi-annual agreements in respect of some schemes. In accordance with the popularity standards above, the place such agreements comprise obligations that clients haven’t but carried out, these parts of the agreements usually are not recognised as expenditure. The company discloses the extent of those unrecognised commitments in be aware 17. To the extent that clients meet their future efficiency obligations, the company expects that these commitments will likely be recognised as expenditure in future years.

Devolved administrations

RPA administers a number of schemes for all UK claimants. Principally these schemes comprise of the Fruit & Vegetables Scheme and School Milk Scheme. Where RPA makes funds to claimants outdoors of England these quantities are reclaimed from the related devolved administrations in Scotland, Wales and Northern Ireland.

This earnings is recognised by the company when it’s possible that it’s going to obtain a reimbursement from the devolved administration for scheme expenditure incurred and the quantity to be obtained is taken into account reliably measurable. These situations are deemed to be met on the level that the associated scheme expenditure is recognised. The earnings is introduced throughout the UK funded schemes part of Note 5.

European Commission funded schemes

The European Commission funding ceased on 15 October 2020. However, the company continues to get well money owed from farmers in relation to scheme funds which had been initially funded by the European Commission and continues to repay a proportion of the monies recovered to the European Commission. These recoveries are introduced as adverse expenditure, while the corresponding repayments to the European Commission are introduced as adverse earnings. Entries are in opposition to expenditure and earnings, fairly than the Statement of Financial Position, because the RPA is recovering and paying over money owed by clients finally to the European Union, fairly than owed by clients to the company itself.

1.9 Other UK paying companies expenditure and earnings

Other UK paying companies have continued to manage funds to clients all year long below the European Agricultural Fund for Rural Development. These funds are funded by the company and are subsequently recovered by the company from the European Commission.

Scheme expenditure in relation to funding offered by the company is recognised when the company has a gift obligation to fund a fee to the opposite UK paying companies and the quantity payable is taken into account reliably measurable and possible. These situations are deemed to be met upon the receipt of a funding request from the opposite UK paying companies, adjusted for any over or underfunding to the paying companies calculated at interval finish. Funds offered to different paying companies prematurely of those factors are handled as prepayments. As accredited paying companies, different UK paying companies are liable for the regularity and propriety of funds issued to their ultimate beneficiaries.

Scheme earnings in relation to funding offered to the opposite UK paying companies is recognised by the company when it’s possible that it’s going to obtain reimbursement from the European Commission for scheme expenditure incurred and the quantity to be obtained from the European Commission is taken into account reliably measurable. These situations are deemed to be met on the level that the associated scheme expenditure is recognised.

All expenditure and earnings associated to the funding of different UK paying companies is introduced in Note 6.

The influence of any international change actions between the declare date and the date of precise reimbursement by the European Commission are borne by the company and accordingly recognised within the Statement of Comprehensive Net Expenditure.

1.10 European Commission funding of schemes administered by the company

Up till 31 March 2023, rural growth expenditure below the RDPE was managed by the company on behalf of Defra. Accordingly, scheme earnings and expenditure had been reported in Defra’s useful resource accounts with transfers reported as actions by means of the General Fund. Payments to clients made on behalf of Defra, and recoveries obtained from the European Commission on behalf of Defra are disclosed throughout the Cash Flow assertion below the Financing Activities heading as this greatest displays their nature as money movement gadgets just for the company. With impact from 1 April 2023, management of the scheme handed to the company, and due to this fact all future RDPE expenditure and recoveries will likely be recognised in RPA’s accounts.

The impacts of any international change actions between the declare date and the date of precise reimbursement by the European Commission are borne by the company and accordingly recognised throughout the Statement of Comprehensive Net Expenditure.

1.11 Value Added Tax (VAT)

Defra and its govt companies share a single VAT registration. Most actions regarding the group are outdoors the scope of VAT.

As a consequence, enter tax can’t typically be recovered. However, below an HM Treasury concession making use of to authorities departments, restricted enter VAT restoration could also be attainable on sure specified contracted out companies attributable to these actions. For these restricted actions the place output VAT is charged, straight attributable enter VAT might be recovered below the traditional guidelines.

In all cases, the place output tax is charged, and enter tax is recoverable, quantities are said web of VAT. Where enter tax can’t be recovered, quantities are said inclusive of VAT.

1.12 Foreign foreign money transactions

The practical and presentational foreign money of the company is sterling.

The company receives reimbursements from the European Commission in euros for funds administered by the company and different UK paying companies in relation to the Rural Development Programme and in accordance with respective scheme guidelines and laws.

These international foreign money transactions are recognised as scheme expenditure and scheme earnings on the charges of change prevailing on the dates of recognition of these transactions as described in Notes 1.9, and 1.10. At every Statement of Financial Position date, financial property and liabilities which are denominated in foreign currency echange are retranslated on the charges prevailing at that date.

Exchange variations are recognised within the Statement of Comprehensive Net Expenditure within the interval by which they come up apart from change variations on transactions entered into to hedge sure international foreign money dangers, see Note 1.13.

1.13 Derivative monetary devices

Note that, regardless of a lot of schemes ceasing to be EU funded, the company continues to be uncovered to international change threat in respect of schemes which the company administers on behalf of Defra, and which proceed to utilise agreed budgets below EU programme closure laws (e.g., in respect of schemes forming a part of the Rural Development Programme for England). The company additionally continues to fund the devolved authorities for equal rural growth programmes and continues to handle the ensuing international change threat which arises on the continuing reimbursement of CAP expenditure.

The company enters into international change ahead contracts to handle its publicity to international change price threat arising on the reimbursement, by EU, of this expenditure. Further particulars of by-product monetary devices are disclosed in Note 13.

The company doesn’t designate the contracts for hedge accounting and derivatives are recognised at truthful worth on the date a by-product contract is entered into and are subsequently remeasured to their truthful worth at every reporting interval date. The ensuing achieve or loss is recognised within the Statement of Comprehensive Net Expenditure instantly. The truthful worth is established utilizing revealed change and swap charges, for the foreign money pair, and reconciled to the valuation reported by the counterparty.

Derivatives are settled to correspond with reimbursement of expenditure by the EU by means of the common quarterly cycle and in keeping with EU programme closure preparations.

A by-product with a optimistic truthful worth is recognised as a monetary asset whereas a by-product with a adverse truthful worth is recognised as a monetary legal responsibility. A by-product is introduced as a present asset or present legal responsibility if the remaining maturity of the instrument is lower than 12 months or is larger than 12 months however is predicted to be realised or settled inside 12 months. The company doesn’t commerce by-product preparations for speculative functions.

1.14 Trade receivables

Trade and different receivables primarily signify quantities anticipated from the EC, different authorities companies, and clients below varied schemes administered by the company. Trade and different receivables are categorised below IAS 32 Financial Instruments as monetary property.

The business mannequin of the company is to gather funds of principal, and curiosity the place relevant, from its debtors. In basic, the biggest receivables owed to the company, are usually public sector entities or the EC in respect of money owed for schemes processed, to which no actual prospect of default applies.

The company has no non-current receivables or any receivables the place a financing part has been utilized. Therefore, the company recognised its receivables at truthful worth, and holds them at amortised cost which for receivables with no financing part, is the invoiced quantity, much less provision for anticipated credit score losses.

Expected credit score losses

The company has reviewed receivable balances in opposition to the creditworthiness of the associated clients.  For these clients that aren’t different authorities companies or the EU, the company has insurance policies and procedures in place to make sure credit score threat is stored to a minimal.

These embody netting receivable balances owed to the company in opposition to scheme funds the company is obliged to make to these clients, contacting clients with overdue receivable balances by letter, telephone and e-mail, and in some circumstances providing them smart compensation phrases to get well sums owed. The company is due to this fact not uncovered to materials credit score threat.

Because receivables are short-term in nature with no financing part the simplified mannequin has been utilized by which the loss allowance is the same as lifetime anticipated credit score losses.  Credit losses are recognised within the Statement of Comprehensive Net Expenditure and measured as the current values of the variations between the contractual money movement, and the estimated future money movement.

The estimated future money flows are decided after contemplating, amongst different issues, the influence of agreed fee plans with clients, quantities anticipated to be recovered by means of interception (the method of offsetting a buyer’s receivables in opposition to a future scheme fee) and historic assortment information for purchasers who’ve left the scheme.

1.15 Pensions

Present and previous workers of the company are lined by the provisions of 4 separate outlined profit schemes known as Principal Civil Service Pension Schemes (PCSPS), and from 1 April 2015 a profession common foundation scheme known as alpha, that are described in Note 2.2.

PCSPS is a multi-employer outlined profit scheme the place, as one in every of many collaborating organisations, the RPA is unable to establish its share of the underlying property and liabilities. Accordingly, per IAS 19, the RPA accounts for this scheme because it had been an outlined contribution scheme and recognises the prices of those contributions as they fall due. The company will not be chargeable for the obligations of different entities throughout the scheme. Further particulars of the pension preparations of this scheme might be seen throughout the Cabinet Office Civil Superannuation Annual Reports.

The company can’t establish its share of underlying property and liabilities for these outlined profit schemes. Therefore, the company recognises the anticipated cost of those pension schemes on a scientific and rational foundation over the interval throughout which it advantages from workers’ companies by fee to the 5 pension schemes calculated on an accruing foundation. Liability for future advantages is a cost on the pension schemes on an accruing foundation. The company doesn’t contribute to every other pension scheme.

1.16 Provisions

Provisions are recognised when the company has a authorized or constructive current obligation on account of a previous occasion, it’s possible that the company will likely be required to settle that obligation and a dependable estimate might be product of the quantity of the duty.

The quantity recognised as a provision is the perfect estimate of the consideration required to settle the current obligation on the Statement of Financial Position date, making an allowance for the dangers and uncertainties surrounding the duty. Where a provision is measured utilizing the money flows estimated to settle the current obligation, its carrying quantity is the current worth of these money flows.

When some or the entire financial advantages required to settle a provision are anticipated to be recovered from a 3rd get together, a receivable is recognised as an asset solely whether it is just about sure that reimbursement will likely be obtained, and the quantity of the reimbursement might be measured reliably.

1.17 Early departure prices

The company is required to fulfill the extra prices of advantages earlier than regular retirement age in respect of workers who retire below early severance and early retirement schemes. The company offers for this when a proper letter has been issued to the worker giving a leaving date and severance phrases.

1.18 Contingent liabilities

In accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, a contingent legal responsibility is a attainable obligation that arises from previous occasions and whose existence will likely be confirmed solely by the prevalence or non-occurrence of a number of unsure future occasions not totally throughout the management of the entity; or a gift obligation that arises from previous occasions however will not be recognised as a result of (i) it isn’t possible that an outflow of sources embodying financial advantages will likely be required to settle the duty; or (ii) the quantity of the duty can’t be measured with ample reliability.

In addition to contingent liabilities disclosed in accordance with IAS 37, the company discloses for Parliamentary reporting and accountability functions sure statutory and non-statutory contingent liabilities the place the chance of a switch of financial profit is distant, however which have been reported to Parliament in accordance with the necessities of Managing Public Money.

Where the time worth of money is materials, contingent liabilities that are required to be disclosed below IAS 37 are said at discounted quantities and the quantity reported to Parliament individually famous. Contingent liabilities that aren’t required to be disclosed by IAS 37 are said on the quantities reported to Parliament.

1.19 Operating segments

IFRS 8 requires working segments to be recognized on the idea of inner stories about parts of the company which are frequently reviewed by the Chief Operating Decision Maker to allocate sources to the segments and to evaluate their efficiency. The company has recognized the Chief Executive Officer because the Chief Operating Decision Maker. The required granular info is disclosed within the accounts in Note 3 and Note 4 for operating prices and Note 5 and Note 6 for scheme as a result of these notes are reflective of the knowledge introduced to senior administration and related resolution makers.

For segmental reporting throughout 2022-23, Defra makes use of main areas of spend as reported month-to-month to the Defra Management Committee. The company represents one in every of these discrete areas of spend. As in earlier years, the Chief Executive Officer continued to evaluate and monitor the company’s operational and monetary efficiency at this aggregated stage as introduced in Defra’s monetary statements.

1.20 Critical accounting judgements and key sources of estimation uncertainty

The Chief Executive Officer, in his capability as Accounting Officer, makes use of judgement in making estimates and assumptions in regards to the carrying quantity of property and liabilities that aren’t readily obvious from different sources. The estimates and related assumptions are primarily based on historic expertise and different components which are thought-about to be related.  Actual outcomes could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing foundation. Revisions to accounting estimates are recognised within the accounting interval by which the estimate is revised, and if the revision additionally impacts future durations in these durations as nicely. In reviewing these estimates, we think about the extent to which these might presumably fluctuate and whether or not such a variation might point out the necessity for a cloth adjustment to the accounts. There is nothing within the present evaluate to point {that a} variation of a cloth quantity might come up.

The following are the essential judgements, which the Chief Executive Officer, in his capability as Accounting Officer, has made within the strategy of making use of the company’s accounting insurance policies and which have essentially the most vital impact on the quantities recognised within the monetary statements.

a. Recoverability and helpful lives of intangible property

In capitalising internally developed purposes and bespoke IT software program tasks and licences and packages developed by third events, the Chief Executive Officer, in his capability as Accounting Officer, makes judgements and estimates when assessing whether or not the prices incurred meet the standards for capitalisation within the accounting requirements, whether or not the capitalised software program will proceed to offer ample profit to the company to assist its carrying quantity, and whether or not the helpful lifetime of the present capitalised, internally generated intangible property stays applicable.

Key components driving helpful life and impairment assessments embody estimates of the anticipated future life span of the present schemes administered by the company and the anticipated use of some or the entire present functionalities of the present capitalised intangible property in pilots and succession schemes.

b. Estimated quantities for claims not but paid

In line with the coverage set out in Note 1.8, RPA sometimes recognises UK funded scheme expenditure upon the receipt of claims (or later if the claimant has different obligations to fulfil). This is previous to claims being totally checked and validated by RPA. In making ready the accounts RPA makes an estimate of the particular quantities that are seemingly be paid with a view to settle the claims obtained.

An accrual of £57.4 million (2021-22: £42.3 million) has been recognised, which represents administration’s view of the most certainly quantities because of particular person claimants. Where attainable accruals are primarily based on inner information of when claims have been obtained and their worth and checked whether or not they’re nonetheless to be paid out. Accruals are additionally recognised the place it’s cheap to count on that claimants could have fulfilled their different obligations per their grant settlement the place applicable.

1.21 Cash and money equivalents

Cash and money equivalents comprise money in hand and present balances with banks, that are readily convertible to identified quantities of money and that are topic to insignificant threat of modifications in worth and have an unique maturity of three months or much less. The carrying quantity of those property approximates their truthful worth. Bank overdraft quantities are included inside commerce and different payables within the Statement of Financial Position.

1.22 General Fund

The General Fund represents the overall property much less liabilities of the company, to the extent that the overall will not be represented by different reserves. Financing by Defra is credited to the General Fund. When the company makes repayments of financing to Defra these are debited to the General Fund.

1.23 Financial penalties

The company receives earnings by means of reimbursement of scheme expenditure from the European Commission. This consists of reimbursements of funds made by different UK paying companies, see Note 1.9.

The European Commission could apply monetary penalties to any of the paying companies in the event that they think about there to be infringement of scheme laws. These penalties, known as “financial corrections” or “disallowance”, are sometimes deducted retrospectively from reimbursements. Due to the time taken for the Commission to evaluate attainable penalties, corrections could proceed to come up for a number of years after the UK’s exit from the European Union.

Financial penalties attributable to schemes administered by the company are recognised as a loss within the Statement of Comprehensive Net Expenditure of the core division, not throughout the company’s accounts. The shortfall in reimbursement is proven as a funding switch by means of the company’s Statement of Changes in Taxpayers’ Equity when the reimbursement takes place.

With impact from 1 April 2023 onwards, all RDPE expenditure and recoveries have been recognised throughout the company’s monetary statements. However, all disallowance costs and comparable EU monetary penalties, regarding RDPE expenditure incurred by Defra previous to 1 April 2023, have continued to be recorded in Defra’s monetary statements as Defra retains accountability for these historic transactions.

Financial penalties attributable to schemes administered by different UK paying companies are charged to these companies on the level the European Commission deduct it from their reimbursement. Consequently, these monetary penalties haven’t any influence on the company’s personal expenditure and earnings and are reported inside Note 6 Other paying companies expenditure and earnings.

1.24 Corporate overhead recharge (notional)

Defra Corporate overhead recharge companies prices, comprising costs for authorized, HR, IT, estates, procurement, and shared companies together with payroll and financials, are recognised by the company as notional costs, with the core division recording the related credit score. The company nonetheless advantages from the usage of these company companies, however the full budgets are retained by Defra to acquire and handle the companies extra effectively and successfully. The annual non-cash costs for these companies made by Defra to the company are settled on a notional (non-cash) foundation to keep away from pointless money flows between the division and the company; this settlement is mirrored straight in fairness because it constitutes a contribution from Defra as a controlling get together of an equal quantity to the recharge itself, which is recognised within the Statement of Comprehensive Net Expenditure.

1.25 Adoption of latest and revised requirements

The following reporting customary will change into efficient for accounting durations after 1 January 2024:

IFRS 17 Insurance contracts

IFRS 17 Insurance Contracts turns into efficient, topic to adoption into the FReM, for accounting durations commencing on, or after, 1 January 2025. It requires a reduced money movement method to measuring insurance coverage liabilities. The company has assessed that there aren’t any preparations that presently fall inside scope and due to this fact this customary could have no influence on the monetary statements. The company doesn’t count on every other new, or revised customary, or interpretation to have a cloth influence.

2. Staff numbers and associated prices

2.1 Staff prices comprise:

No employees prices have been capitalised (2021-22: £nil).

Average variety of individuals employed

The common variety of full-time equal individuals employed (together with senior administration and company employees) throughout the yr are disclosed within the Staff Composition part of the Staff Report.

Individual contractors engaged to fill momentary or everlasting vacancies, or present further useful resource are included inside employees prices in Note 2.1. Where companies have been engaged to offer companies, they aren’t thought-about to be workers and are excluded from employees prices in Note 2.1 and are mirrored inside Non-IT skilled companies in Note 3.

2.2 Pension schemes

For 2022-23, employers’ contributions of £17.5 million had been payable to the PCSPS (2021-22: £14.8 million) at one in every of 4 charges within the vary 26.6% to 30.3 % of pensionable earnings, primarily based on wage bands. 

The scheme actuary valued the PCSPS as at 31 March 2016. You can discover particulars within the resource accounts of the Cabinet Office: Civil Superannuation.

The Scheme Actuary opinions employer contributions normally each 4 years following a full scheme valuation. The contribution charges are set to fulfill the cost of the advantages accruing throughout 2022-23 to be paid when the members retire and never the advantages paid throughout this era to current pensioners.

Employers’ contributions of £219k (2021-22: £203k) had been paid to the Legal & General Mastertrust stakeholder pension supplier. Employer contributions are age-related and ranged from 8% to 14.75 %.

Employers additionally match worker contributions as much as 3% of pensionable earnings. In addition, employer contributions of £7.6k (2021-22: £7.2k), 0.5% of pensionable pay, had been payable to the PCSPS to cowl the cost of the longer term provision of lump sum advantages on dying in service or in poor health well being retirement of those workers.

Contributions as a result of partnership pension suppliers on the assertion of monetary place date had been £18.7k (2021-22: £17.3k). There had been no pay as you go contributions at that date. 

2.3 Reporting of Civil Service and different compensation schemes – exit packages

Redundancy and different departure prices have been paid in accordance with the provisions of the Civil Service Compensation Scheme (CSCS), a statutory scheme made below the Superannuation Act 1972. Where the company has agreed early retirements, the extra prices are met by the company and never by the civil service pension scheme for 2022-23 the company reported £49k of such prices (2021-22: none).

During the yr to 31 March 2023 there have been no obligatory redundancies (2021-22: none) and no voluntary redundancies (2021-22: none).

3. Other operating prices

The company doesn’t straight meet the prices of sure companies which are offered centrally by Defra. These companies are agreed and managed by means of service stage agreements between the company and Defra.

The company stories these notional recharges to precisely replicate the true prices of operations, with an identical credit score recorded within the General Fund.

The Corporate overhead recharge (notional) includes:

During the yr to 31 March 2023, the company obtained no non-audit companies from the NAO (2021-22: £nil).

Included in Notes 2 and three are the prices related to the UK Co-ordinating Body that are summarised within the following desk:

The UK Co-ordinating Body is an unbiased physique, whose perform is to make sure that all paying companies keep their accreditation standing and successfully administer CAP.

From 1 April 2023, UK Co-ordinating Body budgets transferred to Defra, therefore for 2023-24 onwards all UK Co-ordinating Body prices will likely be reported in Defra’s Annual Report and Accounts.

4. Running prices earnings

The company additionally obtained earnings in 2022-23 for companies it offers for the BCMS on behalf of Defra of £2.4 million (2021-22: £3.0 million).

5. Schemes administered by the company

UK funded schemes – Other Schemes includes:

6. Other paying companies

The company is required to offer funding to different paying companies with a view to permit them to make funds below EU funded schemes. The related earnings claimed from the European Commission, is introduced alongside the funding offered. BPS expenditure paid after 15 October 2020 is funded straight by the related devolved administration, and as such no expenditure or earnings is introduced throughout the company’s accounts. This is the reason for the numerous lower in each funding and earnings year-on-year.

7. Property, plant and gear

Included in property, plant and gear are property with a historic cost of £0.8 million (31 March 2022: £0.9 million), which have been totally depreciated. These property are nonetheless in use by the company.

8. Intangible property

During the yr to 31 March 2023 there have been £nil impairment losses (2021-22: £nil).

Included in intangible property are property with a historic cost of £35.2 million (31 March 2022: £36.0 million) which have been totally amortised. These property are nonetheless in use by the company.

The historic cost web e-book worth for intangible property as on the Statement of Financial Position date is £44.7 million (2021-22: £42.5 million).

Included in intangible property are software program property offered by Defra to ship CAP scheme funds. These intangible property had a historic cost of £112.2 million and at 31 March 2023 a web e-book worth of £43.5 million, with 5 years remaining amortised life ending 31 March 2028.

During the yr to 31 March 2023 the company had £11.6 million intangible property transferred from Defra by means of General Funds (2021-22: £4.2 million). For each 2022-23, and 2021-22, these had been notional transfers from a controlling get together, Defra. Consequently, as non-cash gadgets, the property offered usually are not disclosure throughout the Statement of Cash Flow for 2022-23 or 2021-22.

9. Trade receivables

Amounts falling due inside one yr:

The credit score interval for commerce receivables invoices is nil besides in these cases the place an settlement is reached between the company and the client to permit for restoration by means of the interception of future funds or prolonged compensation phrases are agreed. The company has a capability to cost curiosity on overdue scheme balances.

10. Cash and money equivalents

The following balances had been held at 31 March:

Included throughout the money held with Government Banking Services at 31 March 2023, are money securities of £4.0 million (31 March 2022: £3.5 million) obtained from import and export merchants and held by the company inside a public checking account. These are funds made to the company to make sure these merchants adjust to the obligations related to the import and export licences they’ve been issued. If a dealer doesn’t meet these obligations, they might forfeit these money securities with the money being retained by the company.

At 31 March 2023, the money equal stability was £nil (31 March 2022: £nil).

11. Trade payables and different present liabilities

Amounts falling due inside one yr:

Amounts falling due after a couple of yr:

The company considers that the carrying quantity of commerce and different payables approximates to their truthful worth.

12. Provisions

Scheme associated provision

The company has some circumstances the place clients have challenged its selections relating to their declare eligibility for scheme funds. This has been reviewed on a case-by-case foundation, with provisions made the place the company considers fee to be possible and might be measured reliably. The company has no provisions for 2022-23 (2021-22: none).

13. Financial devices

13.1 Significant accounting insurance policies

Details of the numerous accounting insurance policies and strategies adopted (together with the standards for recognition, the idea of measurement and the idea for recognition of expenditure and earnings) for every class of monetary asset and monetary legal responsibility are disclosed in Note 1.

Categories of monetary devices:

Financial Assets

Financial Liabilities

Others:

Financial Guarantee Contracts

Cash on deposit at 31 March 2023, consists of money lodged with Government Banking Services and Commercial Banks.

The sterling denominated accounts held inside Government Banking Services usually are not topic to an rate of interest cost whereas the euro denominated accounts held had been topic to an rate of interest cost of 0.65% from 18 September 2019 onwards (0.55% till 17 September 2019).

Cash securities are offered by sure merchants, see Note 11. No curiosity is paid to merchants on money balances lodged with the company as safety.

The company points merchants with import and export licences for which a non-cash guarantee from a financial institution or insurance coverage firm is required to be put into place. These non-cash ensures are assurances that guarantee fee to the company if the dealer fails to honour sure contractual obligations to the company. They will change into money funds to the company within the occasion these obligations usually are not fulfilled. Most licence holders meet their obligations due to this fact the ensures usually are not a contingent asset. Non-cash sterling ensures totalling £215 million, and euro ensures totalling €156 million (£137 million) had been held at 31 March 2023 (£233 million and €259 million (£219 million) at 31 March 2022). These usually are not measured above zero within the Statement of Financial Position because the company assesses primarily based on prior expertise of dealer behaviour a minimal probability of the ensures being known as upon.

13.2 Financial threat administration insurance policies

The company’s treasury operations are managed in accordance with the framework doc agreed with Defra and HM Treasury. The framework doc units out the governance preparations in respect of the company’s hedge technique, the execution of contracts, the valuation of derivatives, the method for settlement of derivatives and exterior reporting.

13.3 Market dangers

The company’s actions expose it primarily to the monetary dangers of modifications in international foreign money change charges. The company enters into ahead international change contracts to handle its publicity to international foreign money threat regarding euro denominated receipts from the European Commission for the Basic Payment Scheme and Rural Development Programme Scheme expenditure (together with Scotland, Wales and Northern Ireland).

From January 2003, in accordance with Commission Regulation (EC) No.1997/2002 (as amended), non-Eurozone member states, such because the UK, are reimbursed by the European Commission in euros.

However, the vast majority of distributions by the company are transacted in sterling, which creates an publicity to positive aspects or losses from fluctuations in international change charges between the euro and sterling. The company has managed its publicity to this threat by means of the acquisition of ahead international foreign money contracts.

13.4 Foreign foreign money denominated financial property and financial liabilities

The carrying quantities of the company’s international foreign money denominated financial property and financial liabilities on the reporting date are as follows:

13.5 Sensitivity evaluation

The following desk particulars the company’s sensitivity to a ten% enhance and reduce in sterling in opposition to the euro. The sensitivity evaluation consists of solely excellent international foreign money denominated financial gadgets and adjusts their translation on the interval finish for 10% change in international foreign money charges. For web working prices a optimistic quantity signifies a lower in web working prices whereas a adverse quantity signifies a rise in web working cost.

Impact of motion in Euro/Sterling price: Sterling appreciates by 10%

Impact of motion in Euro/Sterling price: Sterling depreciates by 10%

Outstanding international foreign money contracts:

No hedge ineffectiveness was recognised throughout the interval, and no future ineffectiveness is predicted. However attainable sources of hedge ineffectiveness have been recognized as:

• The credit score threat of each the European Commission and the by-product counterparty, and
• The threat that forecast future euro denominated reimbursements of expenditure could not happen

During the yr the company entered into by-product change contracts to hedge the quarterly euro denominated receipts in relation to the Rural Development Programme.

The truthful worth of international foreign money ahead contracts are measured utilizing quoted ahead change charges and yield curves derived from quoted rates of interest matching maturities of the contracts. They signify Level 2 truthful worth measurements that are these derived from inputs, aside from quoted costs, which are observable for the asset or legal responsibility, both straight (that’s, as costs) or not directly (that’s, derived from costs).

13.6 Own credit score threat and counterparty credit score threat

As the company is a UK Government entity, the personal credit score threat for the company will not be vital. All by-product contracts are with a secure worldwide financial institution; due to this fact, the truthful worth of the counterparty credit score threat can also be restricted.

Credit dangers

Credit threat refers back to the threat {that a} counterparty will default on its contractual obligations leading to monetary loss to the company. As a part of its procedures the company periodically opinions the counterparty credit score threat.

Trade receivables include a lot of unrelated clients with differing credit score qualities, which serves to diversify the company’s credit score threat. An ongoing credit score analysis is carried out on the monetary situation of accounts receivable.

The credit score threat on liquid funds and by-product monetary devices is restricted as a result of the counterparties are banks with excessive credit-ratings assigned by worldwide credit-ratings companies.

13.7 Liquidity dangers

The company is funded by HM Treasury by means of Defra. The company has maintained liquidity, wherever attainable, by means of well timed submission of funding claims to the European Commission.

The company doesn’t undertake the borrowing of funds aside from from HM Treasury. Such borrowing, arising from short-term in-year fluctuations in expenditure, if required, can be affected by the company drawing monies from HM Treasury’s Contingencies Fund. This facility is the topic of a proper standing association agreed by HM Treasury. Drawings are usually repayable throughout the yr.

13.8 Liquidity tables – non-derivative liabilities and property

The following tables particulars the company’s remaining contractual maturity for its non-derivative monetary liabilities with agreed compensation durations. The desk has been drawn up primarily based on the undiscounted money flows of monetary liabilities primarily based on the earliest date on which the company might be required to pay. The desk consists of each curiosity and principal money flows.

Non-interest bearing as follows:

The following desk particulars the company’s anticipated maturity for its non-derivative monetary property. The tables beneath have been drawn up primarily based on the undiscounted contractual maturities of the monetary property together with curiosity that will likely be earned on these property. The inclusion of knowledge on non-derivative monetary property is critical to grasp the company’s liquidity threat administration because the liquidity is managed on a web asset and legal responsibility foundation.

Non-interest bearing as follows:

13.9 Liquidity desk – Gross settled international change ahead contracts

The following desk particulars the company’s liquidity for its undiscounted by-product monetary devices. All derivatives used for hedging functions are proven by maturity primarily based on their contractual undiscounted gross money flows.

14. Revaluation reserve

The Revaluation reserve pertains to revaluation of Intangible property (Note 8) analysed as follows:

15. Capital commitments

The company had nil capital commitments as at 31 March 2023 (31 March 2022: £nil).

16. Lease commitments

16.1 Building

The company occupies varied properties that are held on a leasehold foundation by Defra. The core division manages these properties and the allocation of area between its companies and arms’ size our bodies. These don’t signify recognized property managed by the company and so below IFRS 16 don’t lead to proper of use property or lease liabilities. These and the associated commitments are described within the division’s personal accounts. The whole recharge made by Defra within the present yr was £2,842k which together with the £6,519k services administration recharge quoted in Note 17 make up the £9,361k which is included inside Corporate overhead recharges (notional), Estate administration prices, see Note 3.

16.2 Lease liabilities

Total future minimal lease funds below non-cancellable finance leases at 31 March 2023 are given within the desk beneath for every of the next durations:

The current worth of whole future minimal lease funds below non-cancellable finance leases at 31 March 2023 are given within the desk beneath for every of the next durations:

17. Other monetary commitments

The company has entered into non-cancellable contracts (which aren’t leases or Private Finance Initiative contracts). Agreements have been analysed spanning the yr finish and reflecting contractual cancellation clauses. The funds to which the company is dedicated (not accrued for) are as follows:

Additionally, the company advantages from sure services administration companies which are offered centrally by Defra, together with property employees, utilities, and property upkeep. These companies are agreed and managed by means of service stage agreements between the company and Defra however the contractual commitments underlying these preparations are made by the core division and disclosed of their accounts.

The whole recharge made by Defra within the present yr was £6,519k which is included inside Corporate overhead recharges (notional), Estate administration prices, see Note 3.

Private Finance Initiative (PFI) commitments

In 2022-23, a contract break was exercised to terminate an occupancy settlement for a property occupied by Defra, arm’s size our bodies and different authorities departments together with the company. Consequently, the company now has no off-Statement of Financial Position PFI contracts commitments at 31 March 2023 (31 March 2022: £0.1 million).

UK funded schemes monetary commitments

The company has entered into non-cancellable contracts (which aren’t leases, PFI contracts or different service concession preparations) for UK funded schemes payable to farmers, land managers, faculties, native authorities, and different organisations.

It is widespread for schemes, relying on their nature, to see a major share of shoppers in receipt of a grant funding settlement both not continuing to say, or legitimately electing to say much less that the utmost settlement worth. No adjustment has been made for this issue – the commitments due to this fact signify a most attainable scheme expenditure to which the company is dedicated at 31 March. Payment charges in grant agreements have been adjusted by revealed will increase in fee charges since inception of the agreements by means of to 31 March 2023 with a view to disclose commitments at their present values. Total grant settlement values have been elevated by components starting from 0% to 48% to account for the consequences of revealed weighted common will increase in scheme fee charges between 2021 and 2023. The company is content material that this offers an applicable portfolio-level evaluation however notes that as fee charges are elevated by totally different quantities for every of the totally different underlying actions (choices) which comprise every grant settlement, the dedication values will likely be influenced by the stability of choices taken up at beneficiary ranges. If the components used had been to extend or lower by 1%, the corresponding enhance or lower in monetary commitments can be £11.2 million.

The quantities introduced beneath replicate the company’s commitments at 31 March 2023. On 1 April 2023, the accountability for administering and accounting for legacy RDPE agreements transferred from Defra to the company. The company will proceed to assist these agreements offered that the phrases and situations of the agreements are met. Therefore, on 1 April 2023, RPA recognised further monetary commitments relating to those agreements. More details about RDPE commitments might be discovered within the accounts of the Core division.

Future full-length contractual agreements to which the company is dedicated are as follows:

Notes

The nature of essentially the most vital contracts is described beneath:

1. The company has entered into contractual commitments which embody agreements with farmers who don’t want to transition to future schemes reminiscent of SFI to exit the trade early by promoting their total land holding. The company has assessed {that a} dedication arises on the level when an utility is obtained. Claimants should full the sale of their land by 31 May 2024, though in some distinctive circumstances this deadline could also be prolonged.

2. The company, in collaboration with the Devolved Administrations, is liable for recognising Producer Organisations (POs) into the Fresh Fruit and Vegetables Aid Scheme. The scheme yr runs from 1 January to 31 December. Applications for ‘operational programmes’ submitted by POs to say monies below the scheme, are permitted by the company by 15 December earlier than the scheme yr commences, and the company has assessed {that a} dedication arises at this level. All operational programmes are between three and 5 years in period.

3. The scheme subsidises the cost of milk, sure milk merchandise and yoghurts for varsity youngsters in England, Scotland, and Wales. The subsidy might be claimed by faculties, native authorities, suppliers, or different organisations in order that the merchandise might be offered to schoolchildren at a lower cost. The scheme yr aligns with the college yr operating from August to July within the following yr, and organisations should apply to the company for approval of their utility by 31 October of the college yr. The company has assessed that commitments come up when purposes are permitted.

4. Countryside Stewardship (CS) was launched for farmers and land managers to spice up biodiversity and assist shield and improve farmland and the countryside. CS can successfully be break up into two classes – multi-annual ‘management options’ (generally known as income choices) and capital choices. Agreements for each income and capital choices observe the identical timelines. All income agreements are long run agreements sometimes product of choices which constitutes 5-year agreements (Mid-Tier agreements) and 10-year agreements (Higher-Tier agreements). Capital choices relate to one-off enchancment works reminiscent of fencing, putting in water storage tanks, or improving farmyards to scale back soil erosion. Capital works should be undertaken by the client throughout the first two years of an settlement. The company has assessed that commitments come up when agreements are entered into.

5. The Farming Investment Fund (FIF) is a capital scheme below which a claimant is issued a grant settlement after which completes agreed works, earlier than subsequently making a declare. The FIF offers grants to enhance productiveness and convey environmental advantages. FIF is made up of two separate funds: Farming Equipment and Technology Fund and Farming Transformation Fund. Both these schemes function in an identical method, however on totally different scales and timelines. The company has assessed that commitments come up when agreements are entered into.

6. Sustainable Farming Incentive (SFI) consists of SFI Pilot and SFI 2022. In each circumstances, the company has assessed that commitments come up when agreements are entered into.

SFI Pilot

SFI Pilot has three parts particularly capital choices, income choices and the pilot participation payment. The scheme pays clients for actions they take to handle their land in an environmentally sustainable approach.

The workings of the capital choices within the pilot scheme operates in a similar way as CS capital choices. Once an settlement is in place, the claimant should first full the works after which submit a declare with supporting proof to RPA for fee.

Revenue choices consists of a set of requirements which the claimant is required to ship yearly on designated parcels of land. These agreements final for 3 years and the primary of such agreements went dwell on 1 November 2021.

The participation payment is about at £5k per claimant for the primary yr of income agreements and is meant to compensate claimants for his or her time and prices in finishing studying actions.

SFI 2022

The principal SFI 2022 scheme solely affords income choices. The nature of this scheme is just like the SFI Pilot described above. Customers submit an annual declaration to verify progress in the direction of assembly the necessities of their settlement every year. SFI 2022 agreements will final for 3 years, with some flexibility for farmers to amend them each 12 months from their begin date.

The above represents the utmost attainable commitments to which the company is dedicated to as on the finish of the reporting interval if all agreements proceed for his or her total multi-annual phrases. However, as per the strict phrases and situations of among the schemes, the company could terminate the agreements and any future grant funds on giving the settlement holder six months’ written discover at any time. The following desk reveals the company’s commitments primarily based on the strict phrases and situations of those schemes.

18. Contingent property and contingent liabilities disclosed below IAS 37

18.1 Contingent property

The company has no contingent property.

18.2 Contingent liabilities

The company has the next contingent liabilities the place the potential of an outflow in settlement will not be thought-about to be distant:

The European Commission can apply monetary corrections if Defra (by means of the company) doesn’t adjust to European Commission laws for funds funded by the European Agricultural Guarantee Fund. Any quantities disallowed (and therefore funded by Defra as an alternative) will depend upon the assessed severity of the breach of laws and on subsequent clarification negotiations with the European Commission in accordance with the European Commission’s clearance of accounts process. There is an ongoing potential legal responsibility in respect of monetary corrections which is unquantifiable.

All monetary corrections are funded by Defra, and the contingent liabilities for these are reported in Defra’s accounts and never these of the company.

The company is presently in receipt of appeals from scheme claimants in opposition to the non-payment of claims overlaying schemes administered by the RPA. If the appeals are profitable, they might both lead to a legal responsibility for EU or Exchequer funded funds. The quantity of any such potential legal responsibility is unquantifiable, although is predicted to be immaterial. Further particulars of the variety of appeals is about out throughout the Appeals disclosure of the Performance report above.

19. Related get together transactions

The company, as an govt company of Defra, has transactions with each Defra and the next company:

• Animal and Plant Health Agency

The company additionally had transactions with the next Non-Departmental Public Bodies that are additionally linked to Defra:

• Agriculture and Horticulture Development Board and its subsidiary Livestock Information Limited
• Environment Agency
• Natural England

The company additionally had transactions with the next Non-Ministerial authorities division accountable to parliament by means of the Secretary of State for Health and Social Care:

A major proportion of expenditure made by different paying companies by means of the operation of market assist schemes is funded by the company. These funding transactions have been with:

• Scottish Government Rural Payments and Inspections Division
• Welsh Government
• Department of Agriculture, Environment and Rural Affairs, Northern Ireland

Disclosure of employment

Elizabeth Passey is a Non-Executive Director of the company. She can also be a trustee of The Wye and Usk Foundation (charity) which obtained scheme funds of £95k throughout the yr to 31 March 2023.

Tim Breitmeyer joined as a Non-Executive Director of the company on 1 April 2021. He runs a household farm, Bartlow Estate, which obtained scheme funds of £99k throughout the yr to 31 March 2023.

These transactions had been undertaken within the regular course of business and all transactions had been at arm’s size. These Non-Executive Directors additionally obtain salaries as proven within the Remuneration report.

20. Events after the reporting interval

On 21 June 2023, the company closed purposes to the SFI 2022 scheme and wrote to current SFI 2022 settlement holders stating its intention to curtail current agreements with a view to permit earlier take up of the improved SFI 2023 scheme. Where agreements featured actions which won’t be out there below SFI 2023 the company undertook to compensate settlement holders for any lack of earnings which this created. As a consequence, the company estimates that it’s going to incur roughly £16 million of ex-gratia expenditure throughout the 2023-24 monetary yr.

These accounts have been authorised for challenge by the Accounting Officer on the date the Comptroller and Auditor General’s audit certificates and report was signed.