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National Offender Management Service: Accountancy

Volume 471: debated on Thursday 31 January 2008

To ask the Secretary of State for Justice what annual cost of depreciation is used for accounting purposes at the National Offender Management Service (NOMS); what formula is used to calculate it; and whether depreciation is accounted for as a current cost in NOMS. (181938)

The element of depreciation relating to NOMS for 2006-07 was £202.8 million. Land and buildings are valued at current value and other operational assets at open market value and depreciation is calculated on a straight line basis. Depreciation rates are based on asset lives which vary dependant upon the asset. The depreciation charge is included in NOMS’ resource expenditure, i.e. a current cost.