CABEAnnual report 2007/08Financial statements and accounts

HC 902London: The Stationery Office£13.90

CABE, the Commission for Architecture and theBuilt Environment, is the government’s advisoron architecture, urban design and public space.As a public body, we encourage policymakersto create places that work for people. We helplocal planners apply national design policy andadvise developers and architects, persuadingthem to put people’s needs first. We showpublic sector clients how to commissionprojects that meet the needs of their users. And we seek to inspire the public to demandmore from their buildings and spaces. Advising,influencing and inspiring, we work to createwell-designed, welcoming places.

CABE 1 Kemble Street London WC2B 4ANT 020 7070 6700 F 020 7070 6777E enquiries@cabe.org.uk www.cabe.org.uk

CABEAnnual report 2007/08Financial statements and accounts

HC 902London: The Stationery Office£13.90

Presented pursuant to schedule 2, sections 9(5)(b) and10(3) of the Clean Neighbourhoods and EnvironmentAct 2005.

Ordered by the House of Commons to be printed 17 July 2008.

2

Published in 2008 by TSO

Graphic design: Duffy

ISBN 978-0-10-295624-5

© Crown Copyright 2008The text in this document (excluding any Royal Arms and departmental logos) may be reproduced free of charge in any format or medium providing that it is reproducedaccurately and not used in a misleading context.The material must be acknowledged as Crowncopyright and the title of the documentspecified.

Any queries relating to the copyright in thisdocument should be addressed to:

The Licensing Division, HMSO, St ClementsHouse, 2-16 Colegate, Norwich, NR3 1BQ.

Fax: 01603 723000 or e-mail:licensing@cabinet-office.x.gsi.gov.uk.

Contents

Foreword by the chair of CABE 3

Chief executive’s introduction 4

Performance against targets 5

Commissioners’ report 8

Remuneration report 11

Statement of the commission and 15accounting officer’s responsibilities

Statement on internal control 16

The certificate and report of the 17Comptroller and Auditor General to the Houses of Parliament

Income and expenditure statement 18

Balance sheet 19

Cashflow statement 20

Notes to the accounts 21

3

Welcome to CABE’s annual reportfor 2007/08. This report, whichcontains our annual accounts aswell as a record of our performance,is the formal document we laybefore parliament as part of ourwork as an accountable publicbody.

CABE has a hugely positive remitfrom government: to influence andinspire well-designed places thatimprove people’s quality of life. Thisis an ambitious agenda that we seekto deliver with real urgency.

In the past year, four specific areasof work have dominated CABE’sagenda: education and learning,public space, housing andsustainable design. All of theseaddress issues of centralimportance to society, and I ampleased to report that we met everyone of the targets set for us by thegovernment in 2007/08.

Our schools programme operateson two complementary levels: expert design advice to the people commissioning new school buildings, and educationalprogrammes that help young peopleuse the built environment to learnand achieve their goals. Over thelast year, we have beenchampioning good design inBuilding Schools for the Future, and advising the teams deliveringthe early years building programme. We have also reached the fantasticmilestone of 12,000 pupil visits to inspiring places as part of our How Places Work initiative.These are excellent illustrations of our contribution to the newChildren’s Plan.

CABE Space continues to makepossible the best design andmanagement of public spaces. Thisteam gives both strategic and site-based advice to local authorities,helping them create better spacesfor their communities. As well asparks and other green spaces, thiswork focuses on streets and

squares. We have helped developnew government thinking on streetdesign, and rolled out a hugelysuccessful series of regional trainingsessions. These will ensure that,where cars once dominated, nowpeople should come first; and thatin turn will make for cleaner, safer,more civilised towns and cities.

The development of great homesand neighbourhoods is another bigCABE priority. Our enablers adviseon plans for housing market renewalin the north and midlands, and onhousing growth in the south east.We now design review around 250major housing-led schemes andmasterplans each year, while theBuilding for Life awards, ourpartnership with the housebuildingindustry, celebrates the best inhousing design. Building for Life ismoving into a new phase, where its20 criteria are increasingly beingused by local authorities across the country to assess the quality of new housing proposals. Theseare obviously tough times for thehousing market, but in every debateCABE will be arguing the case foran equal focus on quality andvolumes.

The climate change imperative has shaped our work significantly.We think the built environmentrepresents perhaps the biggest and best opportunity to cut carbonemissions. Our design review andenabling services routinely provideexpert advice helping public sectorclients procure more sustainableplaces. As yet, we see very fewschemes that are genuinelydesigned to be sustainable andthrough initiatives such as theclimate change festival and oursustainable cities learningprogramme, we intend to ensurethat sustainable design becomesthe rule rather than the exception.

In total, CABE is a family of 120staff and 400 design advisors. Weare led by 16 commissioners whoinvest time and expertise in helping

CABE inform and inspire gooddesign. Their dedication andcommitment are appreciated and I thank them all for it.

In 2007/08, we said farewell tothree commissioners – DickonRobinson, Louisa Hutton and BrianBoylan. A fourth commissioner, AlanBarber, stepped down in April 2008due to ill health. We owe all four ourgratitude for the wisdom, supportand encouragement they have given.In their place, we welcomed fournew commissioners: architect PiersGough, regeneration developer NickJohnson, structural engineer HanifKara and writer and director of theDesign Museum Deyan Sudjic.

CABE was set up in 1999, whichmeans that next year, 2009, marksour 10th anniversary. We will beable to look back with pride onsome extraordinary achievements.But we won’t be dwelling on thepast. We were pleased in October2007 to have had confirmation fromthe government of funding for thenext three years. We intend to usethat investment to be a driving forcebehind the creation of high-qualityplaces across the country, not leastbecause we believe that gooddesign is in the public interest.

Sir John Sorrell CBEChair, CABE

Foreword by the chair of CABE

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I am pleased to introduce the annual report of CABE, theCommission for Architecture andthe Built Environment, for the yearended 31 March 2008.

CABE is a non-departmental publicbody (NDPB) sponsored by theDepartment for Culture, Media andSport (DCMS). It receives corefunding from DCMS and also fromCommunities and Local Government(CLG). DCMS acts as the principalsponsor department, and I amaccountable to parliament throughthe permanent secretary at DCMS.

Every year, funding agreementsbetween CABE and its fundingdepartments set out targets thatshould be achieved in the year.These include both operational and outcome targets. I am delightedthat we achieved all of our targetsfor the year 2007/08. Full details of the targets and performanceagainst each is shown on page 5 of this report.

Our design review service, whichseeks to improve new buildingproposals through a process ofexpert peer review, remains one ofour core services. Over the year, wereviewed 367 schemes of strategicimportance. In June 2007, we set upa dedicated design review panel tofocus on secondary schools, and we have continued to run a designreview service for proposalsemerging for the London 2012Olympics. Seven out of 10decisions made by planners onschemes that CABE has seen take on board the feedback given by our design review panel.

Helping others to develop theknowledge and skills to deliver gooddesign is a major part of what wedo. We helped fund a network of 19architecture and built environmentcentres (ABECs) across thecountry, ensuring that young peopleand local communities across thecountry can learn about and

demand good design. Meanwhile,How Places Work completed itsinitial two-year programme,providing over 12,000 pupils with a chance to visit and learn aboutinspiring buildings and publicspaces. CABE itself delivered morethan 6,000 training sessions duringthe year including the urban designsummer school, the CABE Spaceleaders programme, and strategicskills development for those in aposition to embed good designwithin the planning system.

Research and evidence informs allour campaigning on the quality andimpact of the built environment. In2007/08, we published separateresearch reports into the quality of street design; the attitudes ofresidents living in new housing; and the pitfalls of a ‘risk-averse’approach to the design of publicspace.

We have also continued our workpromoting the quality of homes,neighbourhoods and public spacesin the housing growth areas,especially the Thames Gateway. In this sub-region, we have beensupporting the emergence of acoalition of organisations with ashared commitment to deliver well-designed places and a consistentapproach to raising qualitystandards. In total, CABE providedexpert advice to over 30 recipientsof the government’s growth areasfund on 43 different projects in2007/08, and ran 35 workshopstraining housing association teamsto use the Building for Life criteria.

CABE Space, our specialist teamfocused on parks and streets, gavesite-based advice to 110 separateprojects. The team is also leading a programme to help young peopleand local community groups play a central role in the design andmanagement of parks and openspaces. A key part of this workinvolves a new toolkit calledSpaceshaper. The public interest

has been fantastic and over the 12 months to March 2008 509delegates attended trainingsessions in 17 towns and cities, so that we now have 180 facilitatorstrained up against a target of 50 for the year.

Perhaps above all, our work in2007/08 focused on sustainabilityand the challenges presented byclimate change. The builtenvironment is a major contributorto climate change – so designingand managing cities moresustainably is essential. Last year,we began collaboration with eightEnglish cities, helping them developrobust climate action strategies,grounded in strategic urban design.The initiative began with a two-daymasterclass in Bristol and is nowdeveloping a new executivecoaching programme. The end of 2007/08 saw CABE busilypreparing for a high-profile climatechange festival for delivery at theend of May 2008.

We have been delighted towelcome Diane Haigh to our seniormanagement team as director ofarchitecture and design review,replacing Selina Mason who movedon to the Olympic Delivery Authority.I wish them, and all associated withCABE, thanks and every success,and I look forward to another highlysuccessful year to come.

Dr Richard SimmonsChief executive and accounting officer

Chief executive’s introduction

5

Performance against fundingagreement targets 2007/08

In this section we report on theprogress we made in the yearagainst our targets agreed with our funders at the Department for Culture Media and Sport and at Communities and LocalGovernment as part of our fundingagreements. The targets provideindications of our success inmeeting the objectives set out in our corporate strategy.

CABE wants people who makedecisions about the design,management and maintenance ofthe built environment to recognise,prioritise and choose good design.

CABE wants to achieve:

Great places for people, built on excellent, creative architecture,landscape architecture and urbandesign. Places that are sustainable,inclusive, well managed andmaintained. Places that improvehealth and wellbeing.

Greater design knowledge andskills amongst decision makers and professionals, developing andsharing CABE’s knowledge andworking with others to improve and develop built environmenteducation, especially for youngpeople.

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What we said we would do

Increase the number of members of theCABE education network to 2,000.

Consolidate the architecture and builtenvironment centre (ABEC) network at19 centres and improve the quality and reach of activities by offering funding thatprioritises the engagement of localcommunities and young people.

Deliver 117,000 high-quality engagements by young people with buildings and spacesby 31 March 2008.

Increase in the use of design champions bypublic bodies to 75 per cent. Increase in theuse of advisory panels by public bodies to 32 per cent.

Increase the number of case studies in thedigital library that champion high-qualityarchitecture and urban design to 275.

Entries to the Prime Minister’s Better PublicBuilding Awards. Target: 70 entries.

Advise and assist the Olympic DeliveryAuthority and its shadow bodies inestablishing its approach to design, and in delivering a superbly designed OlympicGames in 2012. 2007/08 targets:a) continue to run 2012 design review panel

reviewing all major 2012 projectsb) continue to work with others to progress

a dedicated 2012 architecture and builtenvironment centre (ABEC) to contributeto the Cultural Olympiad

c) work with others in the built environmentsector to contribute to the CulturalOlympiad.

Number of schemes submitted to designreview. Target: 1,200.

Design review at least 350 schemes ofstrategic importance with a minimum of 5 per cent from DCMS sectors.

Performance

The number of network members has increased from 1,538 in 2006/07 to 2,089, demonstrating growing interest in builtenvironment education amongst stakeholders. The networkincludes teachers, built environment education practitionersand built environment professionals and is used as anadvocacy and communication tool.

CABE supported 19 ABECs across England through itsregional funding programme, which provided £960,000 forprojects to inform and inspire public demand for good design.

The number of engagements totals 122,464. This has beendelivered through project funding for ABECs, CABE’seducational grants programme and How Places Workinitiative.

75 per cent of local authorities have a design champion, upfrom 73.8 per cent in 2006/07. 32 per cent of local authoritieshave an advisory body – up from 30 per cent in 2006/07.

Number of digital library case studies available on CABE’swebsite rose from 259 to 289. The case study section ofCABE’s website is the most visited section, showing theinterest in and demand for examples of well-designedbuildings and spaces.

121 entries were received with 21 shortlisted for the Prime Minister’s Awards.

CABE continued to support the Olympic Delivery Authorityand others on the design and management of the 2012Olympics and contribution to the Cultural Olympiad through: – reviewing all major projects through running the London

2012 design review panel with Design for London – continuing to work with others to progress o.space,

an architecture and built environment centre, to engage the public in the 2012 Olympics

– working with others to develop and progress ideas for built environment programmes that will contribute to the Cultural Olympiad

– advising on the design management and maintenance of the Olympic Park.

1,203 schemes were submitted, demonstrating awareness of and desire for design review.

367 schemes of strategic importance were reviewed, 7 per cent of which were from DCMS sectors.

Achieved

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

7

What we said we would do

Increase the average number of visits perweek to the CABE website to 28,000.

Increase the openness of design reviewthrough piloting opportunities for appropriategroups of people to observe design review.

Increase the average number of visits to thecase study section of the CABE website perweek. Target: 21,000

Requests for publications received via CABEwebsite. Target: 240,000.

Ensure media coverage of at least 770 piecesof national and regional coverage and 760pieces of trade coverage.

Educate professionals and decision makersthrough a minimum of 2,600 training sessionsprovided across all target audiences at aminimum of 90 per cent satisfaction.

Inspire those responsible for creating andmaintaining the built environment throughevidence-based research projects related toareas of CLG policy. Target: Four completedand five commissioned projects.

A minimum of 20 local authorities (and otherplanning bodies) signed up to using Buildingfor Life criteria in the assessment of planningapplications.

Percentage of new CLG-funded projects inhousing market renewal (HMR), housinggrowth areas and new growth points thatCABE provides support for. Target: 86 per cent.

To give local authorities strategic and site-based project advice to help them deliverbetter spaces for their communities. Target:105 projects supported.

Devise and introduce a knowledgemanagement framework to help CABE recordand interpret its effectiveness.

Performance

Average number of visits to CABE’s website per week:39,057. This demonstrates an increase in use of the research,data, ideas and practical advice made available by CABE.

CABE piloted a number of approaches to increasing theopenness of design review including holding a public designreview session in Yorkshire, holding specific design reviewsessions as part of key events and have had a number of keyindividuals observing design review.

Average number of visits was 30,974, showing the interest inand demand for examples of well-designed buildings andspaces.

383,610 requests for publications were received,demonstrating the interest in and demand for CABE’sguidance, research and best practice.

Media coverage included 883 pieces of national and regionalcoverage and 880 pieces of trade coverage.

CABE delivered 6,167 training sessions with a 93 per centsatisfaction level including CABE’s urban design summerschool, CABE Space leaders programme and Manual forStreets training.

We have delivered five completed and six commissionedresearch projects including: A sense of place – research onthe attitudes of residents living in new housing; Paved withgold – the real value of street design and Living with risk –promoting better street design.

Over 20 local authorities and other planning bodies havesigned up to using Building for Life criteria in the assessmentof planning applications.

97 per cent of new CLG projects in HMR, housing growthareas and new growth points supported.

110 projects were supported including those relating to thepublic realm, individual green spaces, areas of housinggrowth, housing market renewal and recipients of the saferstronger communities fund.

A knowledge management framework has been introducedwhich has aided and simplified evaluation material gatheredand improved CABE’s understanding of effectiveness.

Achieved

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

8

Commissioners’ report andmanagement commentary

Principal activity of thecommissionThe commission’s principal activity, as set out in the CleanNeighbourhoods and EnvironmentAct 2005, is the promotion ofeducation and high standards in,and understanding and appreciationof architecture, and the design,management and maintenance of the built environment.

Trends and factors affectingfuture performance

StrategiesOver the next three years, inresponse to the challenges that thenation faces, CABE will concentrateon five priorities:

– Homes and neighbourhoods

– Schools

– Public space

– Significant development, includingLondon 2012 and its legacy

– Innovation, creativity and learning,with an emphasis on tacklingclimate change.

As a nation we face challenges thatare changing our towns and citiesand the way we live in them. Weneed to:

– deliver the largest public buildingprogramme for over half a century.New schools, health buildings andthe London 2012 Olympic andParalympic Games all need to bebuilt to the highest quality

– construct up to three millionexcellent new homes in attractiveneighbourhoods by 2020

– adapt to the effects of climatechange and substantially reducethe contribution that the builtenvironment makes to it

– give people the skills to create awell-designed and managed builtenvironment

– create inclusive and accessibleplaces that foster social cohesion,equality, health and well-being

– encourage greater communityinvolvement in creating high-quality buildings, spaces andplaces

– find new ways for creativity,knowledge and culture to bedriving forces in an economycentred on internationallycompetitive city regions

– join these initiatives together sothat the whole is greater that thesum of its parts

– do all this quickly, within tightpublic expenditure limits anddifficult market conditions in theface of skills shortages.

Over the next three years thegovernment will also make importantchanges in delivery. It will set up theHomes and Communities Agency,devolve more decisions to local andregional levels and look for strongerpublic-private partnerships.

Accounts directionThe accounts have been producedin conformance with an accountsdirection given by the secretary ofstate for culture, media and sport on21 February 2002. The text of thedirection is available from thecommission.

Development and performanceduring year ended 31 March 2008

Financial performanceThe accounts for the period ended31 March 2008 show a deficit ofexpenditure over income of£11,856,639. This is financed bygrant income of £11,590,001. Total assets less current liabilities at 31 March 2008 amounted to£1,067,961.

CABE received 85 per cent of itsfunding from two main governmentdepartments – £4,690,001 from

DCMS and £6,900,000 from CLG– to perform its role as governmentadvisor. This amounts to total grantand grant-in-aid for the period toMarch 2008 of £11,590,001. Inaddition CABE secured otherfunding through service levelagreements and bank interest,totalling £2,012,976.

The 2007 comprehensive spendingreview (CSR) has set spendingplans for the next three financialyears and thus established ourgrant-in-aid for those years. CABE’sCSR settlement did not include anyinflationary increases for the nextthree years from DCMS, and a smallincrease from CLG for the first twoyears. The lack of an inflationaryincrease in our grant funding willhave an affect on the scale of ourdelivery over the years and may leadus to explore other avenues offunding.

Our total expenditure for the yearamounted to £13,902,261. Of this£3,190,631 (23 per cent) wasspent on Space issues, £1,248,508(9 per cent) was spent on designreview, £2,774,462 (20 per cent)was spent on enabling, £2,635,739(19 per cent) was spent on regionalwork, £1,664,677 (12 per cent)was spent on communications andpolicy and £2,388,244 was spenton our other activities.

The financial position at the end of the year was that reserves at the end of March 2008 stand at £1,067,961 (March 2007£1,357,301): a decrease of £289,340.

Cash balances increased by£343,719 in the year to March2008. 97 per cent of suppliers’invoices were paid in accordancewith the financial regulations. Creditcontrol measures were effective in limiting exposure to the risk ofbad debts.

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Fixed asset managementFixed assets are regularly reviewedto ensure that they are fit for thepurpose for which they are beingused. Only those assets with avalue of over £3,000 are classifiedas fixed assets.

Indices are applied only to thoseleasehold assets which it is judgedare likely to fluctuate in value.

Equality policy and employeerelations and communicationThe commission is firmly committed to equality of opportunity and has policies and procedures in place to ensurethat employment and advancementare judged solely on the basis ofability, qualifications and suitabilityfor the work.

The senior management team and other managers undertookequalities training and a rollout of some form of equalities trainingis planned for the rest of the staffgroup in the coming year.

A staff forum was establishedduring the year as a means ofconsulting and communicating withstaff on matters affecting the staffbody. The forum, which is made upof representatives from the differentdirectorates within CABE, meetsquarterly and is chaired by the chiefexecutive.

In March 2008 the gender profile of the staff of CABE was 47 male(38.5 per cent) and 75 female(61.5 per cent) with 93.5 per cent of the staff working full time and 6.5 per cent part time.

Creditor payment policyThe commission observes TheConfederation of British Industry’scode of practice. The commission’spolicy is that all matured andproperly authorised invoices mustbe paid in accordance with theterms of contracts, or within 30 days.

For the year ending 31 March 2008the percentage of invoices paidwithin 30 days was 97 per cent.

Code of best practice oncorporate governance The commission complies with allthe relevant requirements of HMTreasury guidance relating tocorporate governance.

Personal data related incidentsCABE did not have any loss ofpersonal data which had to bereported to the informationcommissioner for the year to March 2008.

Open governmentUnder the open government code,the commission does not chargefees for requested information,unless provision of the informationwill consume a significant amountof staff time and resources. Norequests have been refused in the year ended 31 March 2008.

Future developmentsThe planned development ofCABE’s activities until the end ofthe financial year 2008/09 is setout in the published summary of its corporate strategy for 2006/07to 2008/09.

Commission membersCommissioners are all appointed by DCMS through a process ofcompetitive recruitment. They areusually appointed for an initial periodof four years, at the end of whichthey are eligible to be considered for a further four-year term.

The following were members of thecommission as at 31 March 2008:

Sir John Sorrell CBE (Chair)Mr Paul Morrell (Deputy chair as of August 2007)Mr Alan BarberMs Irena BaumanMs Joyce Bridges CBEMs Anthea Case CBEMr Piers Gough CBE (as of August 2007)

Mr Nick Johnson (as of December 2007)Mr Hanif Kara (as of August 2007)Ms MJ LongMr Robin Nicholson CBEMr Ben PageMr Jason PriorDr Ken ShuttleworthMr Deyan Sudjic OBE (as of August 2007)Ms Lorna Walker.

The following retired from thecommission during 2007/08:

Mr Brian Boylan (retired December 2007)Mr Paul Finch OBE (retired July 2007)Ms Louisa Hutton (retired July 2007)Mr Dickon Robinson CBE(retired July 2007).

Chief executiveThe chief executive and accountingofficer is Richard Simmons.

Members of the audit committeeMs Anthea Case CBE (Chair)Mr Paul MorrellMr Ben PageMr Nick Johnson.

Register of members’ interestsA register of members’ interests ismaintained by the commission andheld at 1 Kemble Street, LondonWC2B 4AN. The register isavailable for inspection duringnamed office hours or a copy maybe requested by post, fax or email.

Political and charitable giftsThe commission made no politicalor charitable gifts during the year.

Health and safetyIn accordance with the Health andSafety at Work etc. Act, it is thecommission's policy to provide andmaintain safe and healthy workingconditions, equipment and systemsof work for all its employees, and toprovide such information, trainingand supervision as they need for

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the safe conduct of operations. The commission also accepts itsresponsibility under the Act for thehealth and safety of others who may be affected by its activities.

Our health and safety performancecontinues to be good. We haveintroduced workplace assessmentsfor all staff and have establishedtraining for all of our fire wardens.

We have negotiated anoccupational health contract toprovide a necessary service forstaff. We have renewed ourcontract to provide an employeeassistance programme and havealso introduced a healthcarepackage through Benenden as part of benefits to staff.

Environmental policyDuring the year we have continuedto work towards our target ofreducing our carbon emissions by20 per cent. Our offices are leasedand multi-occupied. This reducesthe opportunities and ease withwhich we can make changes – for instance to the heating – thatpromote sustainability.

We have an internal group headedby two commissioners monitoringthe work of the organisation onsustainibility.

Our electricity use has beenreduced and our electricity supplierhas been changed to one whichsupplies energy from renewablesources. We have installed energy-efficient equipment within ouroffices and have increased theamount of recycling.

Sustainability is now included instaff inductions to make it part ofthe staff thinking and part of ourtraining budget was this yeardesignated for sustainability trainingto ensure staff were up to date withthe latest best practice in this area.

Contractors are now required tosubmit their environmental policies

and where possible we try to uselocal suppliers to reduce transportmiles. All CABE publications arenow printed using recycled paper.

AuditorsSince CABE became a statutorybody on 1 January 2006, theaccounts have been audited by theNational Audit Office. The audit feefor the year ended 31 March 2008is £26,000.

Disclosure of information to auditorsAs accounting officer, I confirm that there is no relevant auditinformation of which the NationalAudit Office is unaware. I havetaken all of the steps that I ought tohave taken to make myself aware ofany relevant audit information andto establish that the National AuditOffice are aware of that information.

The accounts were authorised for issue on 16 July 2008 by the accounting officer

Dr Richard SimmonsChief executive and accounting officer

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Remuneration report

Remuneration policyThe remuneration of the chiefexecutive and his terms andconditions of employment must beapproved by DCMS. For all otherdirectors, CABE determines theirterms and conditions of employmentsubject to an agreed annual paynegotiating remit, which will besubject to the agreement of DCMS,and, where required, HM Treasury.

The remuneration committeecomprises the chair, the deputychair and one other member of thecommission.

Service contractsCABE’s rules require staffappointments to be made on meriton the basis of competition that isfair and open to all.

The annual review of theremuneration of the chief executivecomprising salary and bonus isdetermined by the remunerationcommittee.

Salaries of the other staff, includingdirectors, are determined by aperformance management scheme.In addition, all staff, other than thechief executive, are eligible, fundspermitting, for a team bonus basedon an assessment of the team’sperformance against agreed targets.This assessment is made by theremuneration committee.

All of the directors covered by thisreport hold appointments, which areopen-ended until they reach thenormal retiring age of 65. Earlytermination, other than formisconduct, would result in theindividual receiving compensationas set out in the civil servicecompensation scheme.

Salaries and pension benefits(audited)The chief executive officer (CEO)was the highest-paid employee. His total emoluments for the year to March 2008, were £126,471(£122,830 in the year to March2007) comprising salary of£109,975 (year to March 2007£99,750), and a bonus of £16,496.The CEO’s contract provides that amaximum of 5 per cent of his bonusmay be consolidated. Of the bonus,£5,499 was consolidated (year toMarch 07 £1,153) and £10,997was unconsolidated (year to March07 £21,928).

The remuneration of the members of the senior management team fellwithin the ranges set out overleaf.

12

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Joanna Averley 70-75 0-2.5 n/a 10-15 n/a 100 141 19Deputy chief executive and director of enabling

Matthew Bell 70-75 0-2.5 n/a 5-10 n/a 45 69 13Director of campaigns and education

Jonathan Davis 65-70 0-2.5 n/a 5-10 n/a 54 79 14Director of knowledge and skills

Sarah Gaventa 60-65 0-2.5 n/a 0-5 n/a 5 18 10Director of CABE Space

Diane Haigh 30-35 0-2.5 n/a 0-5 n/a 0 5 4Director of architecture and design review (started 1 October 2007)

Paula Harris 75-80 0-2.5 n/a 0-5 n/a 39 69 21Director of resources and corporate governance

Mairi Johnson 25-30 0-2.5 n/a 5-10 n/a 48 67 8Acting director of enabling (started 1 November 2007)

Selina Mason 20-25 0-2.5 0-2.5 0-5 10-15 55 55 6Director of architecture and design review (left July 2007)

Richard Simmons 125-130 0-2.5 n/a 5-10 n/a 73 122 34Chief executive officer

*Cash equivalant transfer value

Salary yearto March

2008

Realincrease in

pension

Realincrease inlump sum

Pension at

31/03/08

Lump sum at

31/03/08

CETV* at31/03/07

CETV* at31/03/08

Realincrease in

CETV* asfunded by

CABE

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Remuneration‘Remuneration’ includes grosssalary; performance pay or bonuses;overtime; reserved rights to Londonweighting or London allowances;recruitment and retentionallowances; private officeallowances and any other allowanceto the extent that it is subject to UKtaxation. The report is based onpayments made by CABE and thusrecorded in these accounts.

Benefits in kindThe monetary value of benefits inkind covers any benefits provided by the employer and treated by the Inland Revenue as a taxableemolument. There were no benefitsin kind in the period.

Pensions Pension benefits are providedthrough the civil service pensionarrangements. From 1 October2002, civil servants may be in oneof three statutory based ‘final salary’defined benefit schemes (classic,premium, and classic plus). Theschemes are unfunded with the cost of benefits met by moniesvoted by parliament each year.Pensions payable under classic,premium, and classic plus areincreased annually in line withchanges in the retail prices index.New entrants after 1 October 2002may choose between membershipof premium or joining a good quality‘money purchase’ stakeholder basedarrangement with a significantemployer contribution (partnershippension account).

Employee contributions are set at the rate of 1.5 per cent ofpensionable earnings for classic and 3.5 per cent for premium andclassic plus. Benefits in classicaccrue at the rate of 1/80th ofpensionable salary for each year of service. In addition a lump sumequivalent to three years’ pension ispayable on retirement. For premium,benefits accrue at the rate of 1/60thof final pensionable earning for each

year of service. Unlike classic, thereis no automatic lump sum (butmembers may give up some of theirpension to provide a lump sum).Classic plus is essentially a variationof premium, but with benefits inrespect of service before 1 October2002 calculated broadly as perclassic.

The partnership pension account isa stakeholder pension arrangement.The employer makes a basiccontribution of between 3 per centand 12.5 per cent (depending onthe age of the member) into astakeholder pension product chosenby the employee. The employeedoes not have to contribute butwhere they do make contributions,the employer will match these up toa limit of 3 per cent of pensionablesalary (in addition to the employer’sbasic contribution). Employers alsocontribute a further 0.8 per cent ofpensionable salary to cover the costof centrally provided risk benefitcover (death in service and ill healthretirement).

Further details about the principal civil service pension(PCSPS) arrangements can be found at the website www.civilservice-pensions.gov.uk.

For the year to March 2008,employers’ contributions of£802,112 were payable to thePCSPS at one of the four rates inthe range of 17.1 to 25.5 per centof pensionable pay based on salarybands.

Columns 6 and 7 of the table onpage 12 show the cash equivalenttransfer value (CETV) of themember’s pension benefits accruedat 31 March 2007 and the end ofthe reporting period. A CETV is theactuarially assessed capitalised valeof the pension scheme benefitsaccrued by a member at a particularpoint in time. The benefits valuedare the member’s accrued benefitsand any contingent spouse’spension payable from the scheme.

It is a payment made by a pensionscheme or arrangement to securepension benefits in another pensionscheme or arrangement when themember leaves a scheme andchooses to transfer the pensionbenefits they have accrued in theirformer scheme. The pension figuresshown relate to the benefits that theindividual has accrued as aconsequence of their total service,not just their current appointment.CETVs are calculated within theguidelines and frameworkprescribed by the Institute andFaculty of Actuaries.

Column 8 reflects the real increasein the value of the CETV. It takesaccount of the increase in accruedpension due to inflation andcontributions paid by the employeeand is calculated using commonmarket valuation factors for the start and end of the period.

Remuneration of commission andcommittee members (audited)The total direct cost of externalcommission appointments in theyear was £141,250 and whollyrelates to basic fees in respect oftheir duties as commissioners andmembers of advisory committeesand panels. No commissionerreceived any performance relatedfees. The emoluments of the chair,John Sorrell, the highest-paidcommissioner were £44,330.

The emoluments of the othercommissioners were as follows:

14

Year to Year to31 March 2008 31 March 2007

£’000 £’000

Mr Paul Finch OBE (deputy chair) (left July 2007) 3 9

Mr Paul Morrell (Deputy chair as of August 2007) 6 6

Mr Alan Barber 6 6

Ms Irena Bauman 9 7

Mr Brian Boylan (left December 2007) 2 6

Ms Anthea Case CBE 6 6

Ms Louisa Hutton (left July 2007) 1 6

Mr Piers Gough CBE (as of August 2007) 4 0

Mr Robin Nicholson CBE 9 9

Mr Ben Page 6 6

Mr Nick Johnson (as of December 2007) 4 0

Mr Jason Prior 6 6

Mr Dickon Robinson CBE (left July 2007) 2 9

Mr Hanif Kara (as of August 2007) 4 0

Dr Ken Shuttleworth 6 6

Mr Deyan Sudjic OBE (as of August 2007) 4 0

Ms Joyce Bridges CBE 6 4

Ms Lorna Walker 9 6

Ms MJ Long 6 4

The commission reimburses travel and subsistence expenses necessarilyincurred by commission members attending meetings or undertaking othertasks arising from their membership, in accordance with the conditions and at the rates applying to the commission’s employees. Commissionmembers do not become members of a pension scheme and there are no superannuation payments relating to the fees paid to them.

Sir John SorrellChair

Dr Richard SimmonsAccounting officer

15

Under the Clean Neighbourhoodsand Environment Act 2005, thesecretary of state for culture, mediaand sport, with the consent of HMTreasury has directed theCommission for Architecture andBuilt Environment to prepare foreach financial year, a statement of accounts in the form and on the basis set out in the accountsdirection. The accounts areprepared on an accruals basis andmust show a true and fair view ofthe commission’s state of affairs atthe year-end and of its income,expenditure and cashflows for thefinancial year.

In preparing the accounts, thecommission is required to complywith the requirements of theGovernment Financial ReportingManual and in particular to:

– observe the accounts directionissued by the secretary of statefor culture, media and sport,including the relevant accountingand disclosure requirements, andapply suitable accounting policieson a consistent basis

– make judgements and estimateson a reasonable basis

– state whether applicableaccounting standards as set outin the Government FinancialReporting Manual have beenfollowed, and disclose and explainany material departures in thefinancial statements

– prepare the financial statementson a going concern basis.

The accounting officer for theDepartment for Culture, Media andSport has designated the chiefexecutive as the accounting officerfor the Commission for Architectureand the Built Environment. Theresponsibilities of an accountingofficer, including responsibility forthe propriety and regularity of thepublic finances for which theaccounting officer is answerable, for keeping proper records and for safeguarding the Commission for Architecture and the BuiltEnvironment’s assets, are set out in the Accounting Officers’Memorandum, issued by HMTreasury and published in Managing Public Money.

Sir John SorrellChair

Dr Richard SimmonsAccounting officer

Statement of the commission andaccounting officer’s responsibilities

16

Statement on internal control

Scope of responsibilityAs accounting officer, I have responsibilityfor maintaining a sound system of internalcontrol that supports the achievement ofCABE’s aims and objectives, whilst

– safeguarding the public funds andassets for which I am personallyresponsible, in accordance with theresponsibilities assigned to me inManaging Public Money, and

– ensuring compliance with therequirements of CABE’s managementstatement and financial memorandumand the CABE-DCMS-CLG relationship protocol.

The purpose of the system of internal controlThe system of internal control is designedto manage risk to a reasonable level ratherthan to eliminate all risk of failure toachieve aims and objectives; it cantherefore provide only reasonable and notabsolute assurance of effectiveness. Thesystem of internal control is based on anongoing process designed to identify andprioritise the risks to the achievement ofCABE’s aims and objectives, to evaluatethe likelihood of those risks being realisedand the impact should they be realised,and to manage them efficiently, effectivelyand economically. The system of internalcontrol has been in place in CABE for theyear ended 31 March 2008 and up to thedate of approval of the annual report andaccounts, and accords with HM Treasuryguidance.

Capacity to handle riskOverall responsibility for risk managementrests with the chief executive, supportedby the risk management committee. Therisk management committee is formed bythe senior management team. It meetstwice a year to re-evaluate all risks on therisk register, assess CABE’s risk appetiteand to review CABE’s management of risk.There is a risk management strategy thatprovides guidance to staff on identifying,evaluating, reporting and managing risks.Additionally, risk management training formanagers has taken place.

The risk and control frameworkA risk register was created and adoptedduring 2002/03, and is revised annually. A comprehensive risk managementstrategy was developed in accordancewith HM Treasury guidance and adoptedby the audit committee. The key elementsof the strategy are:

– the establishment of the riskmanagement committee as the key

forum for risk identification, recordingand management

– the risk management committee reports the revised risk register to the audit committee on a six-monthlybasis.

– the annual internal audit work plan is focussed on testing the internalcontrols associated with the key risksidentified in the risk register.

– in between risk management committeemeetings, it is the responsibility ofdirectors to notify the chief executive of significant new or changed risks, sothat they can be evaluated, managedand recorded, pending confirmation bythe risk management committee.

An internal audit service was provided to March 2008 by PKF, which operates to standards defined in the GovernmentInternal Audit Manual. The auditor submitsregular reports to the audit committee thatincludes its independent opinion on theadequacy and effectiveness of thecommission’s system of internal controltogether with recommendations forimprovement. The audit committee met four times between April 2007 and March 2008.

The board receives periodic reports from the chair of the audit committeeconcerning internal control and we require regular reports from managers on the steps they are taking to managerisks in their areas of responsibilityincluding progress reports on key projects.

Review of effectivenessAs accounting officer, I have responsibilityfor reviewing the effectiveness of thesystem of internal control. My review of the effectiveness of the system of internalcontrol is informed by the work of theinternal auditors and the executivemanagers within CABE who haveresponsibility for the development andmaintenance of the internal controlframework, and comments made by theexternal auditors in their managementletter and other reports. I have beenadvised on the implications of the result of my review of the effectiveness of thesystem of internal control by the board andthe audit committee and a plan to addressweakness and ensure continuousimprovement of the system is in place.

I also meet regularly with the director of resources, who has day-to-dayresponsibility for financial management

and control and receive updates on theinternal controls.

Audit committeeThe audit committee is comprised of up to six commissioners. Additionally,representatives from CABE’s internal andexternal auditors are invited to all meetingsand receive copies of all audit committeepapers.

Internal auditInternal audit functions were provided by PKF in the year to March 2008. Theyprovide an independent and objectiveopinion on all aspects of CABE’s workincluding its risk management and conflictof interest registers. They attend allmeetings of the audit committee as well as providing an annual review of all thework covered in the year.

Their annual report on internal controlconcluded that the overall system ofinternal control is satisfactory in allsignificant respects. The governancearrangements were also found to beappropriate and operating well. Inparticular it was noted that thearrangements for avoiding conflicts of interest were strong and reflect best practice.

Significant internal control problems in the year ended March 2008I am not aware of any significant internalcontrol problems that would prejudice my assurance for the period.

Sir John Sorrell Chair

Dr Richard Simmons Accounting officer

17

The certificate and report of the Comptroller and Auditor General to the Houses of Parliament I certify that I have audited the financialstatements of the Commission forArchitecture and the Built Environment for the year ended 31 March 2008 underthe Clean Neighbourhoods andEnvironment Act 2005. These comprisethe income and expenditure statement,the balance sheet, the cashflow statementand statement of recognised gains andlosses and the related notes. Thesefinancial statements have been preparedunder the accounting policies set outwithin them. I have also audited theinformation in the remuneration report that is described in that report as having been audited.

Respective responsibilities of theCommission for Architecture and theBuilt Environment, accounting officerand auditorThe Commission for Architecture and the Built Environment and chief executiveas accounting officer are responsible for preparing the annual report, theremuneration report and the financialstatements in accordance with the CleanNeighbourhoods and Environment Act2005 and directions made thereunder bythe secretary of state and for ensuring the regularity of financial transactions.These responsibilities are set out in thestatement of commission and accountingofficer’s responsibilities.

My responsibility is to audit the financialstatements and the part of theremuneration report to be audited inaccordance with relevant legal andregulatory requirements, and withInternational Standards on Auditing (UK and Ireland).

I report to you my opinion as to whetherthe financial statements give a true andfair view and whether the financialstatements and the part of theremuneration report to be audited havebeen properly prepared in accordancewith the Clean Neighbourhoods andEnvironment Act 2005 and directionsmade thereunder by the secretary of state.I report to you whether, in my opinion, theinformation, which comprises the chiefexecutive’s introduction and managementcommentary, the commissioners’ reportand the remuneration report, included inthe annual report is consistent with thefinancial statements. I also report whetherin all material respects the expenditureand income have been applied to thepurposes intended by parliament and the financial transactions conform to the authorities which govern them.

In addition, I report to you if theCommission for Architecture and the Built Environment has not kept properaccounting records, if I have not receivedall the information and explanations Irequire for my audit, or if informationspecified by HM Treasury regardingremuneration and other transactions is not disclosed.

I review whether the statement on internalcontrol reflects the Commission forArchitecture and the Built Environment’scompliance with HM Treasury’s guidance,and I report if it does not. I am notrequired to consider whether thisstatement covers all risks and controls, or form an opinion on the effectiveness of the Commission for Architecture and the Built Environment’s corporategovernance procedures or its risk and control procedures.

I read the other information contained inthe annual report and consider whether it is consistent with the audited financialstatements. This other informationcomprises the foreword by the chair ofCABE and performance against targets. I consider the implications for my report if I become aware of any apparentmisstatements or material inconsistencieswith the financial statements. Myresponsibilities do not extend to any other information.

Basis of audit opinionI conducted my audit in accordance with International Standards on Auditing(UK and Ireland) issued by the AuditingPractices Board. My audit includesexamination, on a test basis, of evidencerelevant to the amounts, disclosures andregularity of financial transactionsincluded in the financial statements andthe part of the remuneration report to beaudited. It also includes an assessment ofthe significant estimates and judgmentsmade by the Commission for Architectureand the Built Environment and the chiefexecutive in the preparation of thefinancial statements, and of whether theaccounting policies are most appropriateto the Commission for Architecture andthe Built Environment’s circumstances,consistently applied and adequatelydisclosed.

I planned and performed my audit so as toobtain all the information and explanationswhich I considered necessary in order toprovide me with sufficient evidence to give reasonable assurance that thefinancial statements and the part of theremuneration report to be audited are

free from material misstatement, whethercaused by fraud or error and that in allmaterial respects the expenditure andincome have been applied to thepurposes intended by parliament and thefinancial transactions conform to theauthorities which govern them. In formingmy opinion I also evaluated the overalladequacy of the presentation ofinformation in the financial statements and the part of the remuneration report to be audited.

OpinionsIn my opinion:

– the financial statements give a true andfair view, in accordance with the CleanNeighbourhoods and Environment Act2005 and directions made thereunderby the secretary of state, of the state of Commission for Architecture and theBuilt Environment’s affairs as at 31March 2008 and of its deficit for theyear then ended

– the financial statements and the part of the remuneration report to beaudited have been properly prepared in accordance with the CleanNeighbourhoods and Environment Act2005 and directions made thereunderby the secretary of state; and

– information, which comprises the chief executive’s introduction andmanagement commentary, thecommissioners’ report and theremuneration report, included in the annual report, is consistent with the financial statements.

Opinion on regularityIn my opinion, in all material respects the expenditure and income have beenapplied to the purposes intended byparliament and the financial transactionsconform to the authorities which governthem.

I have no observations to make on these financial statements.

TJ BurrComptroller and Auditor GeneralNational Audit Office151 Buckingham Palace RoadVictoria, London SW1W 9SSDate:16 July 2008

18

Income and expenditure statement for the year ended 31 March 2008

Year to March Year to March 2008 2007

Notes £ £Income

Other operating income 3 1,956,003 1,340,548

Interest receivable 48,980 20,492

Other income 7,993 4,229

Total income 2,012,976 1,365,269

Expenditure

Staff costs 4 5,878,202 5,006,935

Other operating costs 5 8,024,059 6,896,791

Total expenditure 13,902,261 11,903,726

Operating (deficit) for the year (11,889,285) (10,538,457)

Reversal of notional cost of capital 42,442 39,400

Deficit for the year before taxation (11,846,843) (10,499,057)

Taxation 6 (9,796) (4,098)

Deficit for the year after taxation (11,856,639) (10,503,155)

All activities are continuing.

Total recognised losses for the year ended 31 March 2008

2008Note £

Unrealised losses on 7 22,702the revaluation of leasehold buildings

Total 22,702

19

Balance sheet for the yearended 31 March 2008

Year to Year toMarch 2008 March 2007

Notes £ £

Fixed assets 7 1,011,057 1,319,247

Current assets

Debtors 8 1,475,679 1,131,098

Cash at bank and in hand 1,906,209 1,562,490

3,381,888 2,693,588

Creditors

Amount falling due in one year 9 (3,324,984) (2,655,534)

Net current assets 56,904 38,054

Total assets less current liabilities 1,067,961 1,357,301

Reserves

General reserves 11 748,958 1,015,596

Revaluation reserve 12 319,003 341,705

Total reserves 1,067,961 1,357,301

The notes starting on page 21 form part of these accounts.

Sir John SorrellChair

Date: 14 July 2008

Dr Richard SimmonsAccounting officer

Date: 14 July 2008

20

Cashflow statement for the year ended 31 March 2008

Year to Year toMarch 2008 March 2007

Notes £ £

Net cash inflow/(outflow) 13 (11,187,396) (10,551,454)from operating activities

Returns on investment and servicing of finance

Interest received 48,980 20,492

Taxation:

Taxation paid (9,796) (8,776)

Capital expenditure:

Payments to acquire 14 (98,070) (14,512)tangible fixed assets

Financing:

Grant-in-aid – revenue 2 11,491,931 10,076,490

Grant in-aid – capital 98,070 14,512

Increase/(decrease) in cash 15 343,719 (463,248)

The notes starting on page 21 form part of these accounts.

21

Notes to the accounts

1 Accounting policies

1.1 Basis of accountingThe accounts have been preparedin accordance with a directionissued by the secretary of state for culture, media and sport with the approval of HM Treasury, inaccordance with section 87(9) of the Clean Neighbourhoods and Environment Act 2005.

The accounts have been preparedunder the historical cost convention,and take account of the FinancialReporting Manual and generallyaccepted accounting practice so far as considered appropriate or is modified by HM Treasuryguidance.

The accounts are prepared on thegoing concern basis.

1.2 Fixed assetsExpenditure on fixed assets includesthe purchase of office furniture andequipment and computer equipmentcosting over £3,000. Tangible fixedassets are included at currentreplacement cost less an allowancefor depreciation. The valuation isrevised annually by use ofappropriate indices where suchadjustment is material to theaccounts.

Computer software is treated as anintangible item and expensed in theyear of purchase.

Surpluses or deficits on revaluationare taken to the revaluation reserve,except for any impairment which ischarged to the income andexpenditure account whenrecognised.

1.3 DepreciationDepreciation is charged on alltangible fixed assets at ratescalculated to write down thevaluation of each asset to itsestimated residual value evenly over its expected useful life.Average estimated useful lives are as follows:

Fixtures and fittingsThree yearsLeasehold improvementsFive years (or the length of thebuilding lease if less)Office and IT equipmentThree years

Fixed assets are depreciated in the year of acquisition, but not in the year of disposal.

1.4 Operating incomeOperating income is shown gross ofVAT as the commission is registeredfor VAT for non-business use only.

1.5 PensionsPast and present employees arecovered by the provisions of the civilservice pension scheme which isdescribed in the remunerationreport. The defined benefit elementof the scheme is unfunded and isnon-contributory except in respectof dependents’ benefits. Thecommission recognises theexpected cost of these elements ona systematic and rational basis overthe period during which it benefitsfrom employees’ services bypayment to the principal civil servicepension scheme (PCSPS) ofamounts calculated on an accruingbasis. Liability for payment of futurebenefits is a charge on the PCSPS.In respect of the definedcontribution elements of thescheme, the commission recognisesthe contributions payable for theyear.

1.6 Foreign currencyTransactions denominated in foreigncurrency are translated at the rate of exchange ruling on the date ofthe transaction unless covered by a forward contract. Assets andliabilities denominated in foreigncurrency are translated at the rate of exchange ruling at the balancesheet date.

Transaction and translation gainsand losses are credited or chargedto the income and expenditureaccount.

1.7 Capital chargeIn line with HM Treasuryrequirements, a capital chargereflecting the cost of capitalemployed is calculated at 3.5 percent of average net assetsemployed during the year andincluded in operating costs. Inaccordance with HM Treasuryguidance, the notional charge iscredited back to the income andexpenditure account before takingthe result for the year to the generalreserve.

1.8 Grants paidGrants paid are accounted for on an accruals basis.

1.9 Operating leasesPayments made under operatingleases are charged to the Incomeand expenditure account on astraight-line basis over the term of the lease. CABE has no financeleases.

22

2 Grant-in-aidYear to Year to

March 2008 March 2007Notes £ £

Grant-in-aid received – revenue 11,491,931 10,076,490

Grant-in-aid received – capital 98,070 14,512

Total 11,590,001 10,091,002

Grant-in-aid for the year ended 31 March 2008 of £4,690,001 was madeavailable by the Department for Culture, Media and Sport (DCMS) and£6,900,000 was made available by Communities and Local Government(CLG).

3 Other operating incomeYear to Year to

March 2008 March 2007£ £

Arts Council of England 28,083 35,378

Communities and Local Government 388,425 159,660

Department for Children, Schools and Families 640,807 380,764

Department for Culture, Media and Sport 10,000 32,586

Department of Health 22,725 27,275

English Heritage 48,464 21,934

English Nature 0 13,000

English Partnerships 25,000 25,000

Housing Corporation 71,376 61,270

National Audit Office 0 19,050

National Children’s Bureau 71,226 0

National College for School Leadership 20,390 16,805

Olympic Delivery Authority 161,044 89,591

Play Council 0 23,299

Tees Valley 14,786 39,214

Other income 453,677 395,722

Total 1,956,003 1,340,548

23

4 Staff costs

Year to Year to March 2008 March 2007

£ £

Salaries and wages 4,454,873 3,876,358

Temporary staff costs 291,371 136,420

Social security costs 329,846 296,298

Superannuation 802,112 697,859

Total 5,878,202 5,006,935

SuperannuationAs the PCSPS is an unfunded multi-employer defined benefit scheme,CABE is unable to identify its share of the underlying assets and liabilities.A full actuarial valuation was conducted as at 31 March 2007. Details canbe found in the resource accounts of the Cabinet Office: civilsuperannuation (www.civilservice-pensions.gov.uk).

For the 12 months to 31 March 2008, employers’ contributions of£802,112 were payable to the PCSPS at rates in the range of 17.1 to25.5 per cent of pensionable pay, based on salary bands. Employercontributions are to be reviewed every four years following a full schemevaluation by the government actuary. The contribution rates reflect benefitsas they are accrued, not when the costs are actually incurred, and reflectpast experience of the scheme.

Staff numbersThe commission counts the number of staff in post to include allpermanent, fixed-term and temporary staff of all types who are paid asemployees through the payroll. On this basis the average number of whole-time equivalent persons (including senior management) employed for the12 months to March 2008 was 120. Of this number seven were part-timestaff and 117 were full-time staff.

Year to Year to March 2008 March 2007

no. no.

Corporate 18 18

Knowledge and skills 21 14

Campaigns and education 23 28

Enabling 24 19

Design review 18 13

Space 16 10

Total 120 102

24

5 Other operating costs

Year to Year to March 2008 March 2007

£ £

Programme costs 3,976,641 3,422,905

Grants 1,445,629 1,043,809

Administration expenses 746,279 661,288

Rent, rates and maintenance 1,014,445 824,869

Depreciation 383,558 433,202

Professional fees 90,121 150,627

Travel, subsistence and allowances 298,854 264,574

Auditors’ remuneration 26,090 45,210

Non-audit fees 0 10,907

Notional cost of capital 42,442 39,400

Total 8,024,059 6,896,791

6 Taxation

Year to Year to March 2008 March 2007

£ £

Corporation tax @ 20% 9,796 4,098

As a non-departmental public body, the commission is liable to paycorporation tax only on interest received.

25

7 Tangible fixed assets

Office Leasehold Fixtures ITequipment improvements and fittings equipment Total

£ £ £ £ £

As at 1 April 2007 12,275 1,765,474 328,108 400,726 2,506,583

Revaluations (22,702) (22,702)

Additions 84,756 0 13,314 98,070

Disposals

As at 31 March 2008 12,275 1,827,528 328,108 414,040 2,581,951

Accumulated depreciation

As at 1 April 2007 12,275 514,342 271,907 388,812 1,187,336

Charge for the period 0 337,533 37,597 8,428 383,558

Disposals

As at 31 March 2008 12,275 851,875 309,504 397,240 1,570,894

Net book value

As at 31 March 2008 0 975,653 18,604 16,800 1,011,057

As at 1 April 2007 0 1,251,132 56,201 11,914 1,319,247

There are no revaluations in the period for office equipment, fixtures and fittings and IT equipment as they are notmaterial to the accounts.

26

8 Debtors

Year to Year to March 2008 March 2007

£ £

Amounts falling due within one year

Trade debtors 1,211,164 833,436

Prepayments 264,515 297,662

Total 1,475,679 1,131,098

Debtors include amounts owing from:

Local authorities 234,327 109,618

Central government bodies 1,099,194 325,877

Others 142,158 695,603

Total 1,475,679 1,131,098

9 Creditors

Year to Year to March 2008 March 2007

£ £

Amounts falling due within one year

Taxation 9,796 4,098

Trade creditors 1,061,284 1,096,494

Other creditors 387,295 484,008

Accruals and deferred income 1,649,161 876,157

Income tax and social security 217,448 194,777

Total 3,324,984 2,655,534

Creditors include amounts owing to:

Local authorities 64,717 22,421

Central government bodies 1,226,475 1,165,850

Others 2,033,792 1,467,263

Total 3,324,984 2,655,534

27

10 Operating leases

Operating lease commitments falling due during the next year are analysedin the following ranges in which the commitment expires.

Payments which Expires within Expires within Expires overwe are committed to 1 year 2-5 years 5 yearsduring the next year £ £ £

Land and buildings 0 0 555

Other equipment 0 24 0

Total 0 24 555

11 General reserves £

Balance brought forward as at 1 April 2007 1,015,596

Deficit for the year to 31 March 2008 (11,856,639)

Grant-in-aid for the year 11,590,001

Balance as at 31 March 2008 748,958

12 Revaluation reserve

Balance brought forward 341,705

Revaluation for year (22,702)

Total 319,003

28

13 Reconciliation of the operating surplus to net cashflow fromoperating activities

Year to Year toMarch 2008 March 2007

£ £

Operating deficit (11,889,285) (10,538,457)

(Increase) in debtors (344,581) (713,439)

Increase in creditors 669,450 248,332

Cost of capital charge 42,442 39,400

Interest received (48,980) (20,492)

Depreciation 383,558 433,202

Net cash inflow from operating activities (11,187,396) (10,551,454)

14 Capital expenditure

Year to Year toMarch 2008 March 2007

£ £

Acquisition of fixed assets 98,070 14,512

Proceeds from disposal of fixed assets 0

Total 98,070 14,512

15 Analysis of changes in cash during the year ended 31 March 2008

At 1 April Cash At 31 March2007 inflow 2008

£ £ £

Cash at bank and in hand 1,562,490 343,719 1,906,209

29

16 Related party transactions and connected bodies

CABE is sponsored by theDepartment for Culture, Media andSport (DCMS), which is regardedas a related party. The only materialtransactions with DCMS were inrespect of grant-in-aid (note 2). Inaddition, CABE receives furtherfunding from Communities andLocal Government (CLG). Thematerial transactions with CLG werein respect of grant-in-aid (note 2).

There were also materialtransactions with the followingentities which are sponsored byDCMS:

– Arts Council England– Big Lottery Fund– English Heritage– Olympic Delivery Authority.

There were also materialtransactions with the followingentities which are sponsored by CLG:

– Community DevelopmentFoundation

– English Partnerships– Housing Corporation.

During the year CABE had materialtransactions with the followinggovernment departments andcentral government bodies:

– Department for Children, Schools and Families.

During the year CABE had thefollowing material transactions inwhich there was a related interest:

– Irena Bauman, a commissioner, isa director of Bauman LyonsArchitects, which received £422as payment in respect of enablingservices.

– Paul Morrell, a commissioner, wasa director of Davis Langdon LLPand now acts as a consultant tothe firm, which received paymentof £421.

– Jason Prior, a commissioner, ismanaging director of EDAW plc,which received payment of£16,744 in respect of providingenabler services.

– Lorna Walker, a commissioner, is a visiting professor at theUniversity of Sheffield, whichreceived fee payments of £7,177.

– Robin Nicholson, a commissioner,is involved with the ConstructionIndustry Council in a voluntarycapacity, which received contractfees of £18,192.

– Joyce Bridges, a commissioner, is a commissioner for EnglishHeritage. Her son is an associatedirector of Arup’s Economics andplanning consultancy, and OveArup was paid £4,838 in fees.

All of the above were for theprovision of services to CABE thatwere provided on contracts that had been awarded through CABE’snormal procurement processes.

17 Post balance sheet events

There have been no events sincethe end of the year which wouldaffect the understanding of theaccounts.

18 Financial instruments

The commission is required todisclose the role financialinstruments had during the period,in creating or changing the risksfaced in undertaking its activities.The commission’s activities and theway government bodies arefinanced, means that thecommission is not exposed to thedegree of financial risk faced bybusiness entities. The commissionhas no powers to borrow or investsurplus funds, and financial assetsand liabilities generated by day-to-day operational activities are notheld to change the risks facing the

commission in undertaking itsactivities.

Liquidity risk: no significantexposure given the commission’snet resource requirement isfinanced through grant-in-aid.

Interest rate risk: no exposure as the commission does not have anyfinancial liabilities and financialassets are held in a variable ratebank deposit account.

Foreign currency risk: not significantas foreign currency income andexpenditure is negligible.

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