Transport for London: extracts from Annual Report 2012

Transport for London (TfL) is a statutory corporation established by section 154 of the Greater London Authority Act 1999 (GLA Act 1999). It is a functional body of the Greater London Authority (GLA) and reports to the Mayor of London.

Accounting policies (p. 92)

TfL is required to prepare an annual Statement of Accounts by the Accounts and Audit (England) Regulations 2011 (the 2011 Regulations), which those Regulations require to be prepared in accordance with proper accounting practices.

Highlights (p. 70)
In 2011/12, passenger demand again increased from the previous year. London Underground (LU) passenger journey growth continued, with passenger journeys up 5.7 percent on 2010/11. Service demand on the bus network rose by 2.4 per cent and Docklands Light Railway (DLR) passenger journeys increased by 10.0 per cent reflecting the opening of the Stratford International Extension and Westfield Stratford City. Fares increased by an average 5.6 percent in January 2012, resulting in an increase in gross fares income to \(£ 3,547 \mathrm{~m}\).

Gross expenditure before write off of goodwill increased by 5.2 per cent to \(£ 6,124 \mathrm{~m}\), reflecting the increased level of activity offset to a degree by the impact of efficiency savings. An exceptional goodwill impairment of \(£ 106 \mathrm{~m}\) was recognised in relation to the acquisition of the CARE and WARE groups of companies (former PFI partners of DLR).

The level of capital works being undertaken during 2011/12 remained high reflecting the ongoing investment in Crossrail and Tube infrastructure required to increase capacity on the network. Capital expenditure during the year was \(£ 2,652 \mathrm{~m}\).

Statement of responsibilities (p. 80)}

The Corporation is required to:

• Make arrangements for the proper administration of its financial affairs and to secure that one of its officers (its Chief Finance Officer) has responsibility for the administration of those affairs;

• Manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets;
• Approve the Statement of Accounts.

Annual Governance Statement (p. 206)

TfL establishes clear channels of communication with all sections of the community and other stakeholders, ensuring accountability and encouraging open consultation by:
• Making clear to staff and the public what it is accountable for and to whom
• Publishing, publicising and making generally available an annual report as soon as practicable after the end of the financial year
• The annual report presenting an objective and understandable account of its activities and achievements and its financial position and performance

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Discussion points

1. Who might be included in the stakeholders to whom TfL is accountable?

2. To what extent do the 'Highlights' meet the needs of users of the financial statements?