financial review


Key Objective: • Set realistic budgets for its regulatory work. • Assist in securing LSB agreement for practice fees. • Provide financial information which supports the Board’s monitoring and supervisory function.


The 2013 income and expenditure details for IPS are set out below. The audited accounts will be published as part of the CILEx group accounts which will be reported to CILEx members at the Annual General Meeting in July.


There are a number of key features affecting IPS’ income and expenditure. First, very little income arising from regulatory activities is allocated to IPS. This includes income from Fellows’ and Associate Prosecutors’ practice certificate fees, and fees for applications connected with admission as a Fellow. CILEx, as the approved regulator meets the costs of regulation from its income, including income from regulatory activities. The second key feature is that administrative costs are allocated within the CILEx group, including IPS, on a per capita basis so that an increase in staff numbers adds to both salary and administrative costs. These costs appear under ‘management charges’ in the profit and loss account below.


Against this background the overall income and expenditure in 2013 was much the same as in 2012. Direct expenditure on usual activities was lower than the previous year, but salaries and administrative costs edged up. Net expenditure, after taking the income into account, at £976,450 was £45,621 lower than 2012 and £39,227 below budget.


CILEx continued to support IPS to enable it to develop as a regulator and through the provision of back office resources in areas such as IT, human resources and public relations. Staffing increased during the year from 12 to 16, to ensure IPS has the capacity and capability to regulate entities, provide practice rights to CILEx members and manage the new CPD and Fellowship admission processes. Timing and other staff changes meant the full cost of new staff was not felt during the year. The LSB approved the practice rights applications at the end of the year and, subject to approval by the Lord Chancellor and completion of the Parliamentary procedures, we will expect to see new income from applications for authorisation, to offset staff and administration costs during 2014/15.


DETAILED PROFIT AND LOSS ACCOUNT


Year ended 31 December 2013 Income


Contribution from CILEx Rights of audience Disciplinary fees Total


Expenditure IPS Board


Investigating and complaints expenses Rights application fees


Admissions and Licensing expenses Other direct expenses Bad debts provided Audit fees


Professional fees


Management charges Total


Profit before tax Taxation


Profit after tax


2013 £


976,451 6,258


16,929 999,638


162,644 114,227 52,917 30,757 25,290 -875


2,800 9,485


602,393 999,638


0 0 0


2012 £


1,022,071 8,238 3,068


1,033,377


173,618 127,955 122,057 31,740 39,136 11,324 2,750 0


524,797 1,033,377


0 0 0


IPS Board Investigating and complaints expenses Rights application fees Admissions and Licensing expenses Other direct expenses Bad debts provided Audit fees Professional fees Management charges


Professional standards for specialist lawyers 15


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38