Highways Agency

Highways Agency Accounts for the year ending 31 March 2000

History and Background

The Highways Agency was created in 1994 as an Executive Agency of the Department of Transport (now Department of Environment,Transport and the Regions DETR).  

Principal Activities

The aim of the Agency is to contribute to sustainable development by maintaining, operating and improving the motorway and trunk road network in support of the Government's integrated transport and land use planning policies. As network operator, it manages some 6,350 miles (10,200km) of trunk roads and motorways and delivers the Secretary of State's programme of motorway and trunk road improvement schemes.  

Funding

For the 1999/2000 financial year, the Agency was funded on a gross running cost basis from within Class III, Vote 8 of the DETR Appropriations Account. The Agency was allocated £1.47bn against which it spent £1.46bn.  

Review of the Year

A review of the year is contained in the body of the Annual Report.  

Future Developments

In continuance of the policy set out in the 1998 White Paper A New Deal for Transport: Better for Everyone, the Agency will continue to negotiate the transfer of responsibility for non-core network routes to local authorities.

During the last year the Agency undertook a review of its strategic planning and programming processes with the aim of creating a new structure that would better support the Board and improve liaison relationships with DETR. Proposals have been accepted by the Board and will be implemented during the forthcoming year.  

Important events since the end of the Financial Year

On 3 July 2000, the Agency transferred its trunk road network assets within the boundary of Greater London to the newly created Greater London Authority (GLA).These assets comprised roads, structures, communications, lands, surplus properties, stocks and debtors. Liabilities for contractors' costs, land acquisition and compensation costs and bridge strengthening work, associated with these assets, were also transferred.

The net value of the assets to be transferred is estimated at £6.2bn, as at 31 March 2000.This transaction will be reported in the Agency's 2000/01 accounts, as a transfer of function. Accordingly, the Agency's reserves will be reduced by an amount equivalent to the net value of the assets transferred. The 1999/2000 comparative balance sheet figures will be restated.

On 20 July 2000, the Deputy Prime Minister presented the Government's ten-year investment plan to modernise the nation's transport system. As part of the plan, £22bn has been earmarked for the Agency to improve services for its customers. The Agency's strategy to meet the challenge of the plan is set out in "Strategic Roads 2010".  

Board

The composition of the board during the year was:

Lawrie Haynes was appointed through an open competition which was advertised in the press. His appointment, initially for 5 years from 1 April 1994 until 13 February 1999, had been extended until 30 September 2001. He terminated his contract with the Highways Agency on 31 October 1999. Peter Nutt replaced him as Acting Chief Executive on 1 November 1999, pending recruitment of a substantive Chief Executive through open competition.

Tim Matthews joined the Agency as the Chief Executive on 25 September 2000 and was appointed through an open competition.

The remuneration of the members of the Board is based on Senior Civil Service Salary Reviews, except for Jon Seddon who had a fixed term contract for the period 7 November 1994 to 6 May 2001. He terminated his contract with the Highways Agency on 7 September 2000. Mel Quinn replaced him as Acting Finance Director, pending recruitment of a substantive Finance Director through open competition. The remuneration details of the board are set out at Note 2 to the Accounts.  

Advisory Board

Responsibility for advising the Secretary of State on the performance of the Agency lies with the DETR Permanent Secretary assisted by an Advisory Board. Members during 1999/2000 were:

Equal Opportunities

There is a well-established Equal Opportunities Action Plan that is reviewed, updated and published each year. Through this the Agency is committed to helping all staff, regardless of gender, ethnicity, disability, age, religion, sexual orientation, marital status, care responsibilities or working patterns, to make the most of their opportunities for selection, promotion and development. We believe that all staff are entitled to be treated fairly and with respect.  

Disabled Persons Policy

The Agency is committed to helping disabled staff make the most of their opportunities for selection, promotion and development. As a demonstration of this commitment, the Agency has been awarded the two tick Disability Symbol by the Employment Service, which enables staff with disabilities to be guaranteed an interview for a post provided they meet the minimum criteria specified.  

Employee Involvement

The Agency seeks to maximise every communication channel to employees in order to involve them in the running of the organisation. This is done through a variety of methods, including regular in-house newsletters and bulletins, management briefings, trade union consultation and widespread training programmes.  

Policy on payment of supplies and payment performance

The Agency aims to settle all valid invoices within contract terms, which are usually 30 days but 40 days for consultant and land compensation payments. During 1999/2000, the Agency paid 91.2% (1998/99 96.3%) of invoices within this target.

The Agency is rationalising its accounts payable function. This includes reducing the number of local payment centres and centralising the function in a single office in Birmingham. Two centres were closed during the year. Payment performance was affected during this transitional period as new staff in Birmingham were recruited and trained and by the prolonged closure of the business over the millennium period. Two further centres will be closed during 2000. In planning the transfer of the remaining functions, the Agency has actions in hand to ensure we do not experience similar problems in meeting our Prompt Payment Initiative (PPI) obligations.  

Year 2000 Issue

The Agency undertook a comprehensive Year 2000 Programme and achieved compliance of all of its major systems by June 1999 at a cost of £7.5m. The Agency has not experienced any significant problems arising from the millennium issue.  

Introduction of the Euro

No expenditure was incurred in 1999/2000 in connection with the preparation for the Euro. The Agency is currently reviewing the potential impact of the Euro on our operations and is preparing an appropriate action plan.  

Basis of accounts

These accounts have been prepared in accordance with the HM Treasury Resource Accounting Manual. The Treasury did not issue a separate accounts direction for the Agency's 1999/2000 accruals accounts, so there is no statutory basis for a formal audit opinion by the Comptroller and Auditor General on these accounts. They are, therefore, formally classified as unaudited. However, the National Audit Office has undertaken a full audit of the Agency's accounts as an integral part of its audit of the Department of the Environment, Transport and the Region's 1999/2000 resource accounts. Issues relating to the audit of the Agency's accounts are dealt with in the C&AG's opinion and report on the DETR accounts.

Tim Matthews
Accounting Officer

22 December 2000