CABE works. Here’s how. · CABE works. Here’s how. Presented pursuant to schedule 2, sections...

Annual review 2005/06

CABE works.Here’s how.

Presented pursuant to schedule 2, sections 9(5)(b) and 10(3) of theClean Neighbourhoods and Environment Act 2005. This incorporatesthe final annual report and accounts of CABE, the company limitedby guarantee (company number 3831652), for the period up to31 December 2005.

Ordered by the House of Commons to be printed 24 July 2006

HC 1510 London: The Stationery Office £10

Published in 2006 by the Commission for Architectureand the Built Environment.

Written by Howard Fletcher.

Design by 300million.Printed by Roseheath on Starfine environmentally friendly paper.

All photography by Michele Turriani unless otherwise stated.

Cover photo: The Hub, Regents Park, London. The Hub was oneof 14 nominees for the 2006 Prime Minister’s Better Public BuildingAward, organised by CABE.

All rights reserved. No part of this publication may be reproduced, storedin a retrieval system, copied or transmitted without the prior writtenconsent of the publisher except that the material may be photocopiedfor non-commercial purposes without permission from the publisher.This publication is available in alternative formats on request fromthe publisher.

ISBN: 010294296 X

CABE is the government’s advisor on architecture, urban design and publicspace. As a public body, we encourage policymakers to create places thatwork for people. We help local planners apply national design policy andadvise developers and architects, persuading them to put people’s needsfirst. We show public sector clients how to commission buildings that meetthe 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 create well-designed, welcoming places.

This annual review sets out CABE’s progress in its work during the year2005/06. A report of our financial statements for the same year has beenproduced to accompany this review. If you need a copy of that report,please do contact us.

CABE1 Kemble StreetLondon WC2B 4ANT 020 7070 6700F 020 7070 6777E [email protected]

Contents

Foreword by CABE’s chair 2

Chief executive’s report 4

Helping the community fix its future 6

Remembering the past, regenerating the present 8

Renewing a city centre by renewing public interest 10

Raising the profile of championship design 12

Urban design on the curriculum 14

Laying the foundations for schools for the future 16

Creating a patient-centred heallthcare facility 18

CABE’s what, where, when and who of 2005/06 20

Performance against targets 2005/06 24

1

2

Making an impactIn the last few years, we have witnessed a transformationof the built environment in this country. Change is allaround us, some of it inspirational. Our job at CABEis to make the best the norm. And, in so doing, we aimto have a positive, lasting impact on people’s lives.

Although we’re known as the government’s designchampion, we’re not just interested in aesthetics.Beauty, however you define it, is one element of a greatbuilt environment. But the utility of the end productalso matters. Good design is about making sure thatthis product – a building, a park, a neighbourhoodor even a city – makes life better for anyone whocomes into contact with it.

So how do you achieve good design in the builtenvironment? There is no simple answer. But CABEhas developed a number of ways to help makeit happen. We may ask one of our enablers – designexperts who work for CABE in the field – to work witha local council, offering practical, expert advice. Ourenabler will encourage the project team to raise theirsights, and give the client team confidence to rejectlowest common denominator solutions. Or we may offeradvice through our design review panel. Using a castof experienced professionals to examine developmentproposals, we pull no punches in the argument to ensurethat quality does not come second to speed or cost.

Whichever way we work, CABE always looks at placesthrough the eyes of a user. These are the people who’llenjoy, or suffer, the quality long after the professionalshave moved on. And it’s through this public lens that youcan best discern the value of our work. The design ofnew hospitals and healthcare buildings that CABE hasadvised on will directly affect the quality of care offeredto 20 million patients nationwide. And the procurementof new schools that we have supported will impacton the performance of 130,000 pupils each year.

There is still a massive challenge ahead of us. In manyplaces, bad design surrounds us. But this report describesprojects through which architects, planners, residentsand politicians have come together and shown howgood design can transform the world we live in.

John Sorrell CBEChair, CABE

Facing the challenge: John Sorrell at CABE’s London headquarters

Foreword

3

‘We pull no punchesin the argumentto ensure thatquality does notcome secondto speed or cost’

Chief executive’s report

4

Raising our game

CABE is now more than six years old and many of theprojects we’ve advised are taking shape on the ground.These range from the Gulbenkian prize-nominated LincolnCollection to a tough regeneration project in northSheffield. You should also get a sense in this reportof the change in culture and skills which has takenplace since 1999 across the construction and regenerationsectors. The quality of places is still frustratinglyinconsistent, but it is becoming much harder to sidelinegood design in the development process.

2005 was the year that climate change finally movedcentre stage for the media at least, and stayed there.But the truth is that only a learning society can becomea sustainable society. People change because they havelearned to see themselves and the world in a differentway. CABE promotes high standards in architectureand the built environment by improving, influencingand inspiring people and projects. We will need allthree strategies if sustainability is going to be properlyrecognised as intrinsic to great design.

During the year, our design review service lookedat 319 significant proposals. These ranged from theabject – the initial Cape Hill Brewery plan within theBirmingham-Sandwell housing market renewal pathfinderarea failed both as urban design and architecture –through to the very tall – the DIFA tower proposalin the City of London.

Part of our work to influence design quality also involvesunderstanding the pressures that drive it down. In 2005,our audit of housing schemes in the north of Englandrevealed that only 6 per cent could be describedas good. So, with major volume housebuilders, we havebegun a very positive dialogue exploring the valueof investment in design, through a series of tailoredurban design workshops.

Low-quality design is often due to low aspirations.In the past this was dismally apparent in the healthcaresector, so our campaign, ‘Designed with care’, hastargeted clients and contractors and showcasedinspiring healthcare buildings that are leading the way.‘Parkforce’, organised by CABE Space, proved our mosthigh-profile inspirational campaign. Through this initiative,we are pressing the case for on-site staff in parks.Park rangers from New York City toured England to talkabout the transformation achieved in that city’s CentralPark through a multi-skilled parkforce.

The 2012 Olympic and Paralympic Games are anopportunity to showcase the best in British architectureand landscape design and leave an important legacy foreast London. We seconded our deputy chief executiveto the Olympics team during the year to provide expertdesign advice. As with the wider public buildingprogramme, it is imperative that we focus on qualityas much as the cost and speed of delivery, and in thisrespect the next 18 months of the Olympic programmewill prove absolutely critical. The London games willbe an outstanding event only if people look back on thegames and their legacy as having a lasting benefitfor the UK and especially for east London.

We believe the same level of aspiration is needed forthe Thames Gateway, that network of cities, towns andvillages around the Thames estuary. Each is different andindividual, but they all share a common belief that,however great their past was, the future will be better.We are determined that the work we are doing to definea vision and identity for the region will help the ThamesGateway Strategic Partnership to deliver that great future.

CABE has an amazingly talented team of staff, advisorsand commissioners. We are making strong progressin putting good design back at the heart of developmentand regeneration. We know we can never do it alone.We have many allies and supporters. I would liketo thank them and the team here for their hard workand commitment.

CABE costs a tiny fraction of the value of the schemeswe see at design review. We add a lot of value and savethe cost of a lot of bad design. We can do this onlybecause so many people give us their time and expertiseto make places better for others. We fully appreciate theircontribution to this vital task.

Dr Richard Simmons

Chief executive

Urban renewal: the Sage, Gateshead- focus for spectacular physicaland cultural regeneration

5

‘CABE adds a lotof value and savesthe nation the costof a lot of bad design’

Southey Owlerton,Sheffield

Helping the communityfix its futureBuilt on garden suburb principles in the 1920s and 30s,Southey Owlerton – five neighbourhood areas in northSheffield – had gone into decline. But a consultant’sproposals for comprehensive redevelopment of threeof the neighbourhoods started a summer of demonstrationsagainst demolition.

Open to a radically new approach, Sheffield City Councilestablished a Southey Owlerton area regeneration boardto work with the local community on defining a newfuture. The board established that high design qualitywas a prerequisite for funding individual projects.In need of professional expertise to support this approach,the board asked CABE to help with commissioningprojects, starting with improvements to public spacesbut extending to housing, streetscape and new publicbuildings. CABE helped set up a neighbourhood designpanel, with two architects, a landscape architect anda masterplanner, to provide specialist advice and supportto the community and regeneration teams.

One priority was to help community representativesincrease their confidence in demanding good design.Since seeing is believing, we arranged study tours tosome of the best housing projects around the country,like BedZED in Surrey. We held workshops to explorewhat good design could offer to the quality of life.We gave them a better understanding of the designprocess, so that they could push for clear, simpledesign-led solutions. CABE Space organised workshopswhich investigated different options for long-termmanagement of the public areas.

The close working relationship between the communityand the CABE panel also increased the confidenceof the council. The local authority committed fully to theregeneration plans, building mutual trust and reinforcingthe concept of community engagement.

CABE’s involvement helped to attract better consultantsbecause they could rely on being taken through a qualitydesign process. We think this shows the value of earlyinvestment in good design. There has been increaseddemand for social rented housing and a healthy developerinterest in sites coming forward. But most importantly,our role in setting high standards contributedto a sense that the community could genuinelyinfluence its own destiny.

Planning ahead: Miranda Plowden surveys the scene at Southey Owlerton

6

‘We started outas a bunch of localswith strong views.CABE turned usinto strong clients’Miranda PlowdenProgramme director, Sheffield City Council

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8

The Collection,Lincoln

Remembering the past,regenerating the presentLincoln’s new museum contains over two million itemsspanning 300,000 years. It’s quite a collection. But themuseum doesn’t just tell the story of the city. It showshow a landmark building can bring new life to a neglectedarea, and it illustrates the kind of contribution CABEmakes to the creation of new public buildings acrossthe country.

The museum was a joint project between the city andthe county. The new building would play a crucial partin the regeneration of the Flaxengate area which formsa crucial link between the upper town around thecathedral and the lower, commercial part of town.

CABE’s first job was to help the client team to selectan architect. The client set up a competitive interviewprocess and we helped them to choose seven potentialcontenders from a shortlist of 79. After on-site meetingswith five firms, the client appointed Panter Hudspith.

CABE, the client, the architect and the Heritage LotteryFund all agreed that the area around the museum siteneeded a well-considered masterplan. We supportedthe process and gave advice during the early designstages of the project. CABE teamed up with EnglishHeritage to form a review panel and, after consideringseveral sites, it was decided to demolish a 1960sextension to the nearby Usher Art Gallery to allow thetwo parts of the museum to be better integrated.

Our involvement early on helped steer the client awayfrom decisions that could have proved more costly lateron. In the end, improved access and connectionswith the surrounding buildings have helped to delivera first-rate public arts facility for the region.

The new museum opened in October 2005. In the firstthree months alone, it attracted over 40,000 visitors,and stimulated visits to the gallery next door. In 2006,the museum was shortlisted for the Gulbenkian Prizefor museums and galleries.

Exhibiting initiative: Jonathan Platt at the stunning Lincoln Collection building

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‘CABE actedas a helpful,informed advisor.They worked hardto help us securethe right architect’Jonathan PlattProject director, The Collection

10

‘Without CABE,we might wellhave struggled.Their input tothe design briefwas invaluable’Nigel TurpinUrban design team leader,Nottingham City Council

11

Old Market Square,Nottingham

Renewing a citycentre by renewingpublic interestNottingham Old Market Square is one of Britain’s

largest public spaces, and a key pedestrian route

linking city centre attractions. Unfortunately, the

public wasn’t too fond of its 1950s refurbishment

and it became known as ‘Slab Square’, a place

to be avoided.

Determined to create a world-class public space,

Nottingham City Council approached CABE for support.

It had decided on a far-reaching re-development plan,

but needed advice and support to run a prestigious

public realm design competition. We provided one

of our enablers, a landscape architect, to advise

the council’s project team, to help prepare the

design brief and promotional material.

There was a good response from the professionals,

with high-quality entries from over 60 designers

from the UK, Europe and North America. A CABE

commissioner chaired the judging panel, while our

enabler was able to clarify design objectives during

the process and support the judges who didn’t have

a design or architectural background. London-based

landscape architect Gustafson Porter was appointed.

The firm later described the brief as ‘clear and succinct,setting out exactly what was required’.

While attracting a high-quality response from the professionals, the competition also succeeded in raising public awareness for the redevelopmentproject. Unusually, the competition process included

opportunities for designers to meet community

stakeholders – a CABE innovation.

Old Market Square is at present a building site, but

the transformation is eagerly awaited. Gustafson

Porter’s elegant scheme is based on clear geometry

and clean lines. Easy, flat surfaces and much more

generous seating will improve accessibility. There will

be striking water terraces and flexible spaces

to accommodate more events and markets. The hope

now is that this public space will become a beautiful

new heart for the city centre.

Square route: CABE’s involvement helped Nigel Turpin and othersto select the best design approach

12

Design champions

Raising the profile ofchampionship designLook back over the last 10 years – what’s changedin our built environment? We have had massiveinvestment: over £84 billion (yes, billion) into nearly800 public/private partnership projects; a widelyacclaimed urban renaissance in eight core cities;and individual examples of great new buildings andspaces across the country.

The problem is that good design is often still dependenton an individual. Someone who shows the kind ofleadership that you need to create a building or a placethat is functional, beautiful and inclusive. That is why‘design champions’ are so important, and why theyhave remained a core focus of CABE’s work.

Design champions now exist in almost every sector.By the end of the 2005/06 year, two thirds of localauthorities had appointed a design champion, alongside78 per cent of primary care trusts and 93 per centof acute hospital trusts. At cabinet level, the culturesecretary, Tessa Jowell, became the government’sdesign champion. And for the first time, six of the11 major volume housebuilders appointed one, too.

So who are they and how do they work? Take BeatriceFraenkel, for example. She’s the urban design championfor Liverpool City Council. Beatrice began her workinglife as an industrial design engineer, before becomingchair of South Liverpool Primary Care Trust . Herapproach is not to campaign as much as persuade otherpeople to recognise the value of investing in design.

She persuaded the American healthcare design guruRoger Ulrich to talk to people delivering healthcarebuildings in Liverpool. She then brought in CABE’senabling team to run a special training session aboutdesigning community health buildings for the peopleinvolved in the city’s ‘LIFT’ health project. She helpedto galvanise the council to invest £16 million in thepublic spaces of the run-down Ropewalks districtof Liverpool, an investment which is transformingthe area’s property market. It’s this kind of leadershipthat we need if good design is to improve people’squality of life.

Championship form: Beatrice Fraenkel surveys Liverpool’sRopewalks development

‘CABE helped us todevelop Liverpool’sdesign agenda. Thepackage of supportthat they put in hasbeen remarkable’Councillor Beatrice FraenkelDesign champion,Liverpool City Council

13

‘CABE’s knowledgeof the real worldmade this a realisticand meaningfulproject’David BeresfordEducation advisor, Cambridgeshire

14

Where will I live?

Urban designon the curriculumHow can we get schoolchildren to think about thequality of the built environment? How can we get urbandesign on to the school curriculum and promote citizenshipat the same time? Given that we’re not in the classroomevery day, one obvious way is to team up witha professional teaching body. So that’s what we did.

In 2005, we provided funding of £50,000 for joint workwith the Geographical Association for a teachers’professional development programme. We chosethe topic of housing as the way to help young peopleunderstand how decisions are made: it is of immediateinterest to everyone and a focus of national debate –not least with five million new households expectedin the next 20 years.

The Geographical Association devised the format of theprogramme, Where will I live?, with input from CABEeducation specialists. The project involved teachers from16 schools in Cambridgeshire and East Lancashire –and some 500 pupils. For us, it was a chance to highlightthe importance of design in creating good placesto live. Pupils debate community, sustainability, designand especially interconnectedness, recognising thatthe places we live in are only understandable as partsof a broader national – even global – community, ratherthan discrete entities shaped by purely local concerns.For the association, it was an opportunity to giveteachers an opportunity to be creative in the waythey devised lessons.

Teachers have been encouraged by the positive reactionto the new material in the classroom. In the year followingthe pilot programme, everyone is still enthusiastic andusing the material again.

CABE’s education projects support this agenda in otherways. Our Getting out there ‘local safari guides‘ offerpractical advice to teachers on how to explore their townand the award-winning 360º magazine offers articlesand advice. And a building schools for the futureworkshop has brought together teachers, practitionersfrom building and design trades, planners and localgovernment representatives.

Lessons learned: David Beresford emphasises the importance of architectureand design to his students

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CarolineChisholm School,Northampton

Laying the foundationsfor schools for the futureNorthampton’s Caroline Chisholm School shows whatcan be achieved through commitment and carefulcollaboration. This ‘centre for learning’ embracesinclusive education, a community hub and lifelonglearning. It also acts as an exemplar design forarchitects, planners and educators as they deploy the£5.1 billion that’s been allocated to the government’sbuilding schools for the future programme.

So, what actually happened at the Caroline ChisholmSchool to make it a success? For a start, there wasa healthy degree of collaboration between the headteacher, the governors and the local authority. CABE’sfirst task was to encourage the client team to workclosely with the school community during the planningstages of the project. They set out to deliver a 50-placenursery, a 210-place primary school and a 1,460-placesecondary school with a 260-place sixth form – alongsidea public learning resource centre, two cafes and extensiveindoor and outdoor sports facilities. There was realambition behind this project.

CABE worked closely with local authority officials tocreate a brief for a building that could change over time.Teachers need a space that is flexible enough to adaptto different teaching methods. At Caroline Chisholm, thewhole campus now provides an open environment andindividual blocks can be used as out-of-hours communityfacilities. The central areas of the teaching blocks canbe used in different ways, including breakout areas,space for lockers and a lecture theatre. The publicshares the library with the school.

The school opened in September 2004. Over the next13 years, the government plans to rebuild or refurbish3,700 schools. It is a massive undertaking. We believethat, by working with the local authorities who willbe commissioning these buildings, CABE is makinga real difference to the day-to-day lives of young people,their teachers, their families and their communities.

Work and play: children at Caroline Chisholm benefit from their‘centre for learning’ environment

‘We wanted somethingfresh and innovativeand CABE gave us thecourage to go for it’Gavin MilnerProject manager, Northamptonshire Council

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Children and YoungPeople’s Centre,Lewisham

Creating apatient-centredhealthcare facilityIf you believe that architecture reflects back to us theway we think about society and ourselves, then the designof the new children and young people’s health centrein Lewisham, south-east London, is an encouraging signof the times. The artificial barriers between healthcare andsocial care are finally breaking down. This new buildingembraces child health, mental health, special educationalneeds and social care services – all under one roof.

Over the course of a year, CABE worked with the clientteam of the local primary care trust to help deliver thenew facility. The trust had already decided that it wantedto run a design competition and we provided specialistadvice from our enablers, talking through the therapeuticvalue of great healthcare buildings, helping the clientto formulate a brief, and sitting on the judging panel.

The panel was impressed by the confident, efficientdesigns of van Heyningen and Haward Architects, whowere duly appointed. Their design is disarmingly simple,featuring a garden courtyard visible from the corridorsskirting the building’s inside face. There is good naturallight and the ground floor extends elegantly into thegarden, forming a grass-roofed terrace.

The building was set to open in late 2006 at a costof £13.3m. While the effectiveness of the design will onlybe proved over time, we’re sure that the centre willshow what can be achieved when a committed clientworks through a well-managed process, and retainsa constant focus on quality, as well as speed and cost.

This project illustrates one dimension of CABE’s healthstrategy. During 2005, we launched our ‘Designedwith care’ campaign to showcase the best-designedneighbourhood healthcare facilities in Britain. Andwe have argued passionately that government shouldrecognise the central role of the built environmentin tackling public health issues. It’s the combinationof great buildings like the Lewisham centre andhigh-quality streets and parks that will serve theNHS and public best.

Health centred: project partner Meryl Townley on site at thenew Lewisham centre

‘I can’t fault CABE’sinput. Their supporthelped us retain thequality throughoutthe process’Meryl TownleyProject partner,van Heyningen and Haward Architects

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About CABE

CABE, the Commission for Architecture and the BuiltEnvironment, is a statutory body set up in 1999.It is sponsored by the Department for Culture, Mediaand Sport, with additional funding from the Departmentfor Communities and Local Government.

CABE’s principle purpose is to demonstrate the abilityof great architecture and design to transform people’squality of life. Through practical advice and publiccampaigns, we seek to raise the aspirations, capacityand performance of everyone involved in creating andmaintaining buildings and public space across England.

We believe that well-designed homes, streets, parks,workplaces, schools and hospitals are the fundamentalright of everyone. We use our skills and resourcesto work for a higher quality of life for people andcommunities, with particular concern for those livingin deprived areas. We do this by making the casefor change, gathering hard evidence, providingeducation opportunities and through direct helpon individual programmes and projects.

Organisation

CABE consists of 16 commissioners, appointedby the secretary of state for culture, media and sport.

CABE’s services include:

Design review – offering advice, through our expertdesign review panel, on the design of selecteddevelopment projects that will have a large strategicimpact on an area

Enabling – providing support and advice to clientsduring the early stages of projects, through our staffand panel of professional enablers

Learning and development – providing opportunitiesfor individuals, groups and places to become moreinformed, raise their aspirations and to participatein change; includes our regional team

Policy, communications and research – providing theargument and evidence to support the case for the bestin architecture and design

CABE Space – aiming to bring excellence to thedesign and management of public spaces in ourtowns and cities.

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JuneSelina Mason is appointeddirector of architectureand design review,succeeding foundingdirector of design reviewPeter Stewart.

CABE’s second urbandesign summer schoolbrings together keyagencies involved in theregeneration of EastLancashire to debate thefuture vision for the region.

CABE publishes forwardthinking on the conceptof ‘physical capital’ bythree authors includingformer Downing Streethead of strategyGeoff Mulgan.

MayA CABE Space reportargues for good designand management, notheavy-handed security,as the best approachto combating anti-socialbehaviour in parks andopen spaces.

Business is advisedto take more accountof the links between goodworkplace design andimproved business at thelaunch of a CABE reportat the refurbished HMTreasury headquarters.

Philosopher Alain deBotton rehearses histhinking on architectureand beauty at a lecturehosted by CABE.

JulyBlack and ethnic minorityprofessionals face greatercareer barriers thantheir white counterparts,CABE revealsin a new report.

A strong vision for publicspace and a strategicapproach to delivery arevital to the success of thehousing market renewaland housing growthareas, CABE Spaceargues in Start withthe park.

CABE announces sixnew awards for artists’regeneration projectsthrough the PROJECTinitiative, run in partnershipwith Arts and Business –bringing the total awardedin the year to £220,000.

CABE’s Making placesbooklet offers youngpeople an inviting summaryof careers in thebuilt environment.

AprilThe passage of the CleanNeighbourhoods andEnvironment Act putsCABE on a formalstatutory footing.

CABE picks up twoGeographical Associationawards for 360º magazineand the Making placesbetter website.

CABE announces thewinners of a uniqueAnglo-French architecturalcompetition to designaffordable housing.Homes are beingbuilt on both sidesof the channel.

As a result of CABE’sreview of Willow Place,Corby, an area actionplan was commissionedto integrate new shoppingdevelopment intoa better connected,pedestrian-friendlytown centre.

Imagining. Inspiring. Influencing.CABE’s when, what, where and who of 2005/06.

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SeptemberAfter five years at premiseson London’s Waterloo,CABE moves to newheadquarters inCovent Garden.

CABE is given a key rolein the build-up to the 2012London Olympics afterseconding its deputy chiefexecutive, Joanna Averley,to the OlympicDelivery Authority.

Every urban parkin England should havededicated staff on siteduring daylight hours,argues CABE Spaceas it launches theParkforce campaign.

OctoberPark rangers from NewYork City begin a week-longtour across the country toexplain how a multi-skilledparkforce can help turnneglected parks back intosuccessful, vibrantcommunity spaces.

Brighton’s new PFI-fundedpublic library beats 14other schemes to scoopthe 2005 Prime Minister’sBetter Public BuildingAward. The £8 millionlibrary demonstrates howPFI projects can succeedwhen the client championsdesign quality.

CABE publishes twoguides to improvingschool design under thebuilding schools for thefuture programme, oneusing the ‘design qualityindicator’ tool for schools.

NovemberCABE’s audit of newhousing built in the northof England finds that 94per cent of new schemesby the 10 largest volumehousebuilders fail tomeasure up on designquality.

Frank Gehry’s bold Brightonand Hove scheme receivesqualified support fromCABE: the design reviewpanel needs to seemore affordable housingincluded before it cangive full support.

CABE calls for a commonvision for the ThamesGateway growth area.Chair John Sorrell stresseshis determination to seesuccessful developmentin the Gateway, andpromises to work withstakeholders to establishan identity for the area.

AugustCABE extends itsrole as a championof ‘inclusive design’,taking on responsibilityfor support of thegovernment’s advisorybody on the builtenvironment needsof disabled people.

Design review supportsthe new scheme forthe Royal Arsenaldevelopment in Woolwich,south London, after theoriginal proposals anddesign team werereplaced followingearlier CABE criticism.

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JanuaryCABE announces almost£1.9 million for thenational networkof architecture and builtenvironment centres overthe next two years. Theprogramme promotesand advances education,participation anddesign quality.

CABE names the designchampions of 2005 in itsannual Festive five awards,which recognise newthinking and extraordinarymotivation in the publicand private sectors.

Deputy prime ministerJohn Prescott attendsCABE’s first majorconference and praisesthe organisation for itswork in helping topromote great designin the built environment.

FebruaryToo few local authoritiesknow how much they arespending or what theyget for their money wheninvesting in parks andgreen spaces, newresearch from CABESpace reveals.

CABE launches Designedwith care, a campaignto raise design standardsin neighbourhoodhealthcare buildings.

Up to 300 new homesin England will be builtby some of Europe’s bestyoung architectural talent,after CABE announcesthe winners of Europan,a competition encouragingarchitects to addresssocial and economic changein towns and cities.

CABE launches its newwebsite, www.cabe.org.uk,and user visits andpublication orders soar.

MarchMinister for cultureDavid Lammyannounces four newCABE commissioners:Joyce Bridges, MJ Long,Deyan Sudjic andLorna Walker.

Six of Britain’s biggesthousebuilders appointdesign champions atboard level to ensuredesign issues playa central role in businessstrategy and planning.

The governmentannounces £300 millionfor 85 infrastructure areasto support new housingin growth areas, withmoney earmarked fordesign advice from CABE.

Design review commentson the Bath WesternRiverside residentialproposal, admiring thedeveloper’s commitmentto provide high-qualitypublic realm andinternal spaces.

Culture secretaryTessa Jowell urgesMPs to championhigh-quality design.

DecemberCABE welcomes therecognition in chancellorGordon Brown’spre-budget statement thatwe need to be creatingwell-designed, sustainablecommunities – not justbuilding more houses.

Badly located and poorlydesigned workplaces arenot only bad for employeesand the environment –they are also bad forbusiness, says CABEin a new report producedwith the British CouncilOffices and the BritishProperty Federation.

CABE Space contributesto new research behindthe Department forTransport’s Manualfor streets.

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1,061schemes were

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The following targets formed part of CABE’s fundingagreements with the Department for Culture, Media andSport (DCMS) and the then Office of the Deputy PrimeMinister (ODPM). The ODPM has since been renamed theDepartment for Communities and Local Government.

1 Members of CABE education network.

Target: 1,500

Performance: 1,372

2 Target: To consolidate the architecture and builtenvironment centre (ABEC) network at aroundits current size (16 ABECs + ABEC posts = 19)and improve the quality and reach of itsactivities by offering a regional funding roundthat prioritises the engagement of localcommunities and young people

Performance: The architecture centres continuedto provide an exciting and diverse programmeof work, ranging from exhibitions and publicconsultations to out reach work and public artschemes. CABE made a total grant of £1.86million to 18 centres across England, plus thearchitecture centre network, for work to April 2008

3 Target: 50,000 high-quality engagementsby young people with buildings and spacesby 31 March 2008

Performance: Proposals agreed about howto deliver 50,000 visits for young peopleto remarkable buildings and public spaces

4 Increase in use of design championsby public bodies.

Target: 73 per cent

Performance: 70 per cent

5 Use of advisory panels by public bodies.

Target: 25 per cent


6 Increase in use of Green Flag criteria by localauthorities as a tool in the management of theirgreen spaces.

Target: 73 per cent


7 Increase in the number of digital library casestudies championing high-quality architectureand urban design and disseminating best practice.

Target: 230 case studies

Performance: 233 case studies

8 Entries to the Prime Minister’s Better PublicBuilding Award from key sectors.

Target: 40 DCMS-sector buildings30 Health/education buildings

Performance: 18 DCMS-sector buildings49 Health/education buildings

Performance against this target is dependenton the volume of schemes being developedin the sectors concerned as well as the numberof voluntary entries.

9 Number of design review casesof strategic importance.

Target: 350 cases, of which 5 per centare from DCMS sectors

Performance: 319 cases, of which 20 per centwere from DCMS sectors

10 Number of schemes submitted to design review.

Target: 1,000

Performance: 1,061 submissions

60applications were made

for the Building for

Life standard

25

11 Increasing the openness of design review.

Target: CABE to open up design review

Performance: Two new publications anda DVD launched in summer 2006to increase the transparency of the designreview process

12 Media coverage.

Target: 260 national + 480regional/local mentions

Performance: 270 national + 620regional/local mentions

13 Average number of weekly visits to theCABE website.

Target: 24,000 user sessions per week

Performance: 24,024 user sessions per week

14 Total website visits to web pages dedicatedto the Home buyer’s guide.Target: 65,000

Performance: 84,490

15 Twenty per cent of total CABE national mediacoverage to be related to housing.

Target: 20 per cent


16 Deliver a minimum of six training sessionsaimed at senior managers and boardmembers from the 15 majorvolume housebuilders.

Target: 6 training sessions

Performance: 6 training sessions

17 Number of applications for a Buildingfor Life standard.

Target: 25 applications

Performance: 60 applications

18 Evidence-based research projects relatedto areas of ODPM policy.

Target: 5 published, 3 commissioned

Performance: 8 published, 5 commissioned

19 Design reviews.

Target: 350 schemes

Performance: 319 schemes

20 Percentage of new ODPM-funded projectsin HMR and housing growth areas.

Target: 80 per cent


21 To build successful relations and strengthenpartnership working with a broad rangeof delivery partners at local, regionaland national level.

Target: To be measured by one-off postalsurvey of a specific partnership group to beagreed during 2005/06. Survey satisfactionbaseline from 03/04: 89 per cent

Performance: This will be part of thelarger stakeholder review in Q4 05/06and Q1 06/07

22 Decrease in number of complaints received.

Target: 14

Performance: 19

The majority of these complaints wereof a minor nature and rectifiable.

23 Target: Increased levels of public awarenessabout CABE in pilot areas

Performance: CABE conducted extensiveresearch into how its regional pilot programmes(RPPs) are working. 83 per cent of respondantssaid RPPs added value over and above CABE’sother work. 88 per cent said RPPs were valuableor very valuable (none said they were notvaluable). 70 per cent felt local ownershiphad been achieved

Performance against targets 2005/06

2,038was the number of training

sessions we ran at

100 per cent satisfaction

26

123councils signed up

for Parkforce, which

received record levels

of media coverage

24 Training sessions provided across all targetaudiences at a minimum of 97 per cent satisfaction.

Target: 2,000 training sessions@ 97 per cent satisfaction

Performance: 2,038 training sessions@ 100 per cent satisfaction

25 To help raise standards of delivery across thesector, by supporting ODPM in developing its‘How to…’ guides and academies, and byincreasing the use/uptake of CABE Space’sbest practice guidance/advice.

Target: Uptake of CABE Space guides to bemeasured by a survey of a sample group

Performance: This will be a part of the largerstakeholder review in Q4 and Q1 2006/07

26 To give local authorities one-to-one advice aboutstrategies and projects (including improvementsto the public realm, individual green spaceprojects and recipients of safer strongercommunities funding) to help them deliverbetter spaces for their communities.

Target: 75 projects supported

Performance: 75 projects supported

27 To increase public awareness and demand-ledimprovements to public and green spacethrough the use of targeted campaigns.

Target: One successful campaign

Performance: 123 councils signed up to theParkforce campaign, which received recordlevels of media coverage for a CABE campaign

28 To build an evidence base that demonstratesthe value of good quality green and publicspace by completing and publishingresearch projects.

Target: 2 studies completed and published1 study commissioned

Performance: 1 study completed and published,3 studies commissioned

29 To commission and publish policy papersto generate debate and feed into policymaking on public space issues.

Target: Two policy papers published

Performance: Two papers in development

30 To advise and assist the Olympics DeliveryAgency and its shadow bodies in establishingits approach to design, and in deliveringa superbly designed Olympic Games in 2012that demonstrates the best of architecture anddesign and which will leave a legacy of buildingsand public spaces that are sustainable, inclusiveand of the highest design quality.

Target: Senior-level CABE secondmentto the ODA

Performance: CABE service level agreementwith ODA, allowing the agency to accessCABE’s advice.

CABE becomes a statutory bodyThe passage of the Clean Neighbourhoods and Environment Act in April

2005 put CABE on a statutory footing. The Act came into force on 1 January

2006, when CABE ceased to be a company limited by guarantee. CABE’s

statutory functions are the promotion of education and high standards

in, and understanding and appreciation of, architecture and the design,

management and maintenance of the built environment, including public

spaces. CABE may provide, or assist in the provision of, public works,

services and amenities. We can provide advice and develop and review

projects -whether or not we are requested to do so. This remit applies

across England, but CABE can work anywhere it thinks appropriate.

However Scotland and Wales, under their devolved governments, have their

own design advisors Architecture and Design Scotland and the Design

Comission for Wales, with whom CABE frequently works in partnership.

Printed in the UK for The Stationery Office Limited

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ID 5399820 – 08/06

1 Kemble StreetLondon WC2B 4ANT 020 7070 6700F 020 7070 6777E [email protected]

Commission for Architectureand the Built Environment

The government’s advisoron architecture, urban designand public space

ISBN: 010294296 X

CABE is concerned with architecture,design and people’s quality of life.We champion well-designed buildingsand public space. Our aim is to influenceand inspire the decision-makers, sothey choose good design. We run publiccampaigns and we provide expert,practical advice. We work with planners,designers, clients and architects, offeringthem guidance on projects that willshape all our lives. Fundamentally, wework on behalf of the public. They, afterall, are the people left behind after theplanners and architects have moved on.This review sets out our progress in allthese areas during the year 2005/06.

ISBN 0-10-294296-X

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CABEAnnual report2005/06Financial statementsand accounts

Presented pursuant to schedule 2, sections 9(5)(b) and 10(3) of the

Clean Neighbourhoods and Environment Act 2005. This incorporates

the final annual report and accounts of CABE, the company limited

by guarantee (company number 3831652), for the period up to

31 December 2005.

Ordered by the House of Commons to be printed 24 July 2006

London: The Stationery OfficeHC 1510 £10

Published in 2006 by the Commission for Architectureand the Built Environment.

Design by 300million.Printed by Roseheath on Starfine environmentally friendly paper.

All rights reserved. No part of this publication may be reproduced, storedin a retrieval system, copied or transmitted without the prior writtenconsent of the publisher except that the material may be photocopiedfor non-commercial purposes without permission from the publisher.This publication is available in alternative formats on request fromthe publisher.

ISBN: 010294296 X

CABE is the government’s advisor on architecture, urban design and publicspace. As a public body, we encourage policymakers to create places thatwork for people. We help local planners apply national design policy andadvise developers and architects, persuading them to put people’s needsfirst. We show public sector clients how to commission buildings that meetthe 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 create well-designed, welcoming places.

This annual report sets out CABE’s financial statements for 2005/06.An annual review, setting out the organisation’s work and progress duringthe same year,has been produced to accompany this report. If you needa copy of the review, please do contact us.

CABE1 Kemble StreetLondon WC2B 4ANT 020 7070 6700F 020 7070 6777E [email protected]

Commission for Architecture and the Built EnvironmentA company limited by guarantee( egistered number 3831652)

Chief executive’s foreword to the accounts

I am pleased to introduce the published accounts of CABE, the

Commission for Architecture and the Built Environment, for the nine months

ended 31 December 2005.

CABE was established on 1 September 1999 as a company limited

by guarantee and a non-departmental public body sponsored by the

Department for Culture, Media and Sport. At 31 December 2005, it consisted

of 16 commissioners appointed by the secretary of state for culture, media

and sport. Commissioners were also directors of the limited company.

Under the Clean Neighbourhoods and Environment Act 2005, CABE the

company was dissolved on 31 December 2005 and a new statutory body

also called CABE was established on 1 January 2006. The functions, assets

and liabilities of the old body have been transferred to the new body and

it is on this understanding that the accounts have been prepared on a going

concern basis. These financial statements will therefore be the last set

of accounts of CABE, company limited by guarantee.

In September 2005 CABE moved to new offices at 1 Kemble Street

London WC2, from their old offices in Waterloo, London SE1.

CABE receives core funding from the Department for Culture, Media and

Sport (DCMS) and the Office of the Deputy Prime Minister (ODPM), now

the Department for Communities and Local Government (DCLG). DCMS

acts as the principal sponsor department, and I am accountable to parliament

through the permanent secretary at DCMS.

Each year, funding agreements between CABE and its funding departments,

DCMS and DCLG, set out targets that should be achieved in the year.

These include both operational and outcome targets. Full details of the

targets and performance against each is shown in the annual report for

the year ended 31 March 2006, which incorporates the results of both

the old and the new body.

Dr ichard SimmonsChief executive and accounting officer

Commissioners’ report

The accounts have been produced

in conformance with an accounts

direction given by the secretary

of state for culture, media and

sport on 21 February 2002.

The text of the direction is available

from the commission.

Principal activity of thecommissionThe commission’s principal activity

is to advance, for the public benefit,

education, including aesthetic

education in architecture, and good

design in the built environment,

by promoting and encouraging

the promotion of high standards

in all areas of architecture and

by promoting an understanding

of architecture and design amongst

members of the public.

Financial performanceThe accounts for the period ended

31 December 2005 show a surplus

of income over expenditure of

£3,788 (2005: £5,749). Net assets

at 31 December 2005 amounted

to £36,180 (2005: £32,392).

Further details can be found

in the management commentary

on page 3.

Creditor payment policyThe commission observes The

Confederation of British Industry’s

code of practice. The commission’s

policy is that all matured and properly

authorised invoices must be paid

in accordance with the terms

of contracts, or within 30 days.

For the nine-month period ending

December 2005 the percentage

of invoices paid within 30 days was

92 per cent (2005: 92 per cent).

Code of best practiceon corporate governanceThe commission complies with

all the relevant requirements

of HM Treasury guidance relating

to corporate governance.

Financial statements for the ninemonths ended 31 December 2005

1

Open governmentUnder the open government code,

the commission does not charge

fees for requested information.

No requests have been refused

in the period to December 2005.

Future developmentsUnder the Clean Neighbourhoods

and Environment Act 2005, CABE

the company was dissolved on 31

December 2005 and a new statutory

body, also called CABE, was

established on 1 January 2006.

The functions, assets and liabilities

of the old body have been transferred

to the new body and it is on this

understanding that the accounts

have been prepared on a going

concern basis. These financial

statements will therefore be the

last set of accounts of CABE,

the company limited by guarantee.

The planned development of CABE’s

activities until the end of the financial

year 2006/07 is set out in the

published summary of its corporate

strategy for 2005-2007.

Commission membersCommissioners are all appointed

by the DCMS through a process

of competitive recruitment. They are

usually appointed for an initial period

of four years at the end of which

they are eligible to serve a further

four years.

The following persons were members

of the commission during the

nine-month period ended

31 December 2005:

Mr John Sorrell CBE (Chair)

Mr Paul Finch OBE (Deputy Chair)

Mr Alan Barber

Ms Irena Bauman

Mr Brian Boylan

Ms Anthea Case CBE

Ms Louisa Hutton

Mr Paul Morrell

Mr Robin Nicholson CBE

Mr Ben Page

Mr Sunand Prasad

Mr Jason Prior

Mr Dickon Robinson CBE

Sir Nicholas Serota

Dr Ken Shuttleworth

Mr Les Sparks OBE.

Chief executiveThe chief executive and accounting

officer is Richard Simmons.

Members of the audit committeeSir Nicholas Serota (Chair)

Mr Paul Finch OBE

Ms Anthea Case CBE

Mr Paul Morrell

Mr Sunand Prasad.

egister of members’ interestsA register of members’ interests

is maintained by the commission

and held at 1 Kemble Street,

London WC2B 4AN. The register

is available for inspection during

named office hours or a copy may

be requested by post, fax or email.

Political and charitable giftsThe commission made no political

or charitable gifts during the year.

Employee relationsand communicationsDue to the size of the organisation,

consultation and communication

with employees takes place on

an informal basis.

Equality of opportunityThe commission is committed

to equality of opportunity in the

workplace and has policies and

procedures in place to ensure that

employment and advancement are

judged solely on the basis of ability,

qualifications and suitability for the

work available.

The commission’s policy is

that disablement is no bar to

recruitment or to advancement

within its workforce.

Health and safetyIn accordance with the Health and

Safety at Work etc. Act, it is the

commission’s policy to provide and

maintain safe and healthy working

conditions, equipment and systems

of work for all its employees, and

to provide such information, training

and supervision as they need for

the safe conduct of operations.

The commission also accepts its

responsibility under the Act for the

health and safety of others who

may be affected by its activities.

A health and safety committee

has been established to monitor

safety performance.

Environmental policyThe commission has adopted the

‘green housekeeping strategy’

promulgated by its sponsor

department, DCMS, as far

as is practicable.

AuditorsPKF (UK) LLP undertakes the

commission’s audit. The audit fee

for the period ended 31 December

2005 is £21,150. The value

of non-audit services provided

during the period was £4,230

for VAT advice and £247 for

taxation advice.

As a result of the change in status

to a statutory body CABE will, from

1 January 2006, be audited

by the National Audit Office.

Disclosure of informationto auditorsThe commissioners confirm that,

as far as they are each aware, there

is no relevant audit information

of which the auditors are unaware,

and each commissioner has taken

all the steps that he/she ought to

have taken to make himself/herself

aware of any relevant audit information

and to establish that the auditors

are aware of that information.


2

3

Management commentary

Development and performanceduring the periodIncome and expenditure for the period

to 31 December are comparable

to that of the same period for the

previous year.

CABE moved office during the

period and the new offices have

a conference suite at which events

can be held. This has reduced costs

of using outside accommodation

and has also greatly improved our

ability to showcase the work that

we do in a better environment.

The new office also provides better

access and facilities for the disabled

than our previous offices.

Our website has been redesigned

and relaunched and has attracted

many more visits. It has also enabled

us to put many of our publications

available for download directly

from the site.

Position at the end of the yearThe reserves at the end of the period

to December 2005 stand

at £36,180.

Cash managementCash balance decreased by

£883,883 in the period to

December 2005. Most suppliers’

invoices were paid in accordance

with guidelines. Credit control

measures were effective in limiting

exposure to the risk of bad debts.

Fixed asset managementFixed assets were checked

at the time of the move to new

offices in September and those

which were no longer useful

or in good condition, were sold

or scrapped.

Performance against targetsA detailed report of performance

against targets can be found in the

annual review for the year to 31

March 2006, which accompanies

these financial statements.

Management trends andfactors underlying performanceduring the periodCABE is increasingly being seen as

the national centre for excellence in

the work that we do. We ran a very

successful Parkforce campaign which

included many of the local authorities

in the country. This campaign will

continue over the next year.

We have also been very involved

in the work done in the period after

London’s successful bid to host

the 2012 Olympics on the design

of the Olympic Park. A CABE director

has been seconded to the Olympic

Development Agency to assist

in the work and a joint design

review panel is being established.

Trends and factors affectingfuture performance

StrategiesThe strategic aims of CABE for the

next year are to inspire the nation

on the merits of good architecture,

influence decisions on design of

buildings and planning to improve

on what is being built.

CABE aims to retain its core values

and belief in people’s right to live

and work in buildings which inspire

as well as being functional and fit

for purpose. CABE will continue to

prove in the coming year that great

architecture can improve people’s lives.

Conflicts of interestNone of the directors in the senior

management team held any

directorships or other significant

interests during the year that,

in the opinion of the directors,

may conflict with their

management responsibilities.

emuneration report

emuneration policyThe remuneration of the chief executive

and his terms and conditions of

employment on appointment must

be approved by the DCMS. For all

other directors, CABE determines their

terms and conditions of employment

subject to an agreed annual pay

negotiating remit, which will be subject

to the agreement of the DCMS,

and, where required, HM Treasury.

The remuneration committee

comprises the chair, the deputy

chair and one other member

of the commission.

Service contractsCABE’s rules require staff

appointments to be made on merit

on the basis of competition that

is fair and open to all.

The annual review of the remuneration

of the chief executive comprising

salary and bonus is determined

by the remuneration committee.

Salaries of the other staff, including

directors, are determined by a

performance management scheme.

In addition all staff, other than the

chief executive, are eligible, funds

permitting, for a team bonus.

All of the directors covered by this

report hold appointments that are

open-ended until they reach the

normal retiring age of 60. Early

termination, other than for misconduct,

would result in the individual receiving

compensation as set out in the civil

service compensation scheme.

Salaries and pensionbenefits (audited)The chief executive was the highest

paid employee. His total emoluments

for the nine months to 31 December

2005, were £71,250 (seven months

2004/05: £50,775 – appointed

September 2004).

The remuneration of the other members

of the senior management team fell

within the ranges set out above. We

were unable to get cash equivalent

transfer value (CETV) figures for the

nine-month period to 31 December

2005 so the figures provided are

for the full year to March 2006.

emuneration‘Remuneration’ includes gross salary;

performance pay or bonuses; overtime;

reserved rights to London weighting

or London allowances; recruitment

and retention allowances; private

office allowances and any other

allowance to the extent that it is subject

to UK taxation. The report is based

on payments made by CABE and

thus recorded in these accounts.

No amounts have been paid in the

period in respect of compensation

to former senior managers.

Benefits in kindThe monetary value of benefits in kind

covers any benefits provided by the

employer and treated by the Inland

Revenue as a taxable emolument. There

were no benefits in kind in the period.

PensionsPension benefits are provided

through the civil service pension

arrangements. From 1 October 2002,

civil servants may be in one of three

statutory-based ‘final salary’ defined

benefit schemes (classic, premium,

and classic plus). The schemes are

unfunded with the cost of benefits met

by monies voted by parliament each

year. Pensions payable under classic,

premium, and classic plus are increased

annually in line with changes in the

retail prices index. New entrants

after 1 October 2002 may choose

between membership of premium or

joining a good quality ‘money purchase’

stakeholder-based arrangement with

a significant employer contribution

(partnership pension account).

Employee contributions are set at

the rate of 1.5 per cent of pensionable

earnings for classic and 3.5 per cent

for premium and classic plus. Benefits

in classic accrue at the rate of 1/80th

of pensionable salary for each year

of service. In addition a lump sum

equivalent to three years’ pension is

payable on retirement. For premium,

benefits accrue at the rate of 1/60th

of final pensionable earning for each

year of service. Unlike classic, there

is no automatic lump sum (but members

may give up some of their pension

to provide a lump sum), classic

plus is essentially a variation of

premium, but with benefits in respect

of service before 1 October 2002

calculated broadly as per classic.

The partnership pension account is

a stakeholder pension arrangement.

The employer makes a basic

contribution of between 3 per cent

and 12.5 per cent (depending

on the age of the member) into

a stakeholder pension product chosen

by the employee. The employee does

not have to contribute but, where

they do make contributions, the

employer will match these up

to a limit of 3 per cent

Joanna Averley Consent to disclosure withheld

Deputy chief executive

and director of enabling

Matthew Bell

Director of policy

and communications

Jonathan Davis Consent to disclosure withheld

Acting director of learning

and development

Paula Harris

Director of resources

Julia Thrift

Director of CABE Space

Selina Mason

Director of architecture

and design review

Richard Simmons

Chief executive officer

Nine

months to

December

2005 2004/05

Real

increase in

pension

and related

lump sum

Total

accrued

pension at

age 60 and

31/12/05

and related

lump sum

CETV at

31/03/05

CETV at

31/03/06

Real

increase

in CETV

45-50

50-55

45-50

45-50

70-75

60-65

0

55-60

0

50-55

0-2.5

0-2.5

0-2.5

0-2.5

0-2.5

2.5-5

0-5

2.5-5

0-5

0-5

13

0

16

15

12

31

19

36

42

44

10

16

11

20

26

Salaries and pension benefits


4

Figure in £000’s

of pensionable salary (in addition

to the employer’s basic contribution).

Employers also contribute a further

0.8 per cent of pensionable salary

to cover the cost of centrally provided

risk benefit cover (death in service

and ill health retirement).

Further details about the PCSPS

arrangements can be found

at the website,

www.civilservice-pensions.gov.uk

For the nine-month period to December

2005, employers’ contributions

of £459,076 were payable to the

PCPS (2004/05: £406,856) at one

of the four rates in the range of 16.2

to 24.6 per cent of pensionable pay

based on salary bands. There were

no payments to stakeholder pensions.

Columns 5 and 6 of the table opposite

show the cash equivalent transfer

value (CETV) of the members’ pension

benefits accrued at the beginning

and the end of the reporting period.

A CETV is the actuarially assessed

capitalised vale of the pension scheme

benefits accrued by a member at a

particular point in time. The benefits

valued are the member’s accrued

benefits and any contingent spouse’s

pension payable from the scheme. It is

a payment made by a pension scheme

or arrangement to secure pension

benefits in another pension scheme or

arrangement when the member leaves

a scheme and chooses to transfer the

pension benefits they have accrued

in their former scheme. The pension

figures shown relate to the benefits

that the individual has accrued as a

consequence of their total service, not

just their current appointment. CETVs

are calculated within the guidelines

and framework prescribed by the

Institute and Faculty of Actuaries.

Column 7 reflects the real increase in

the value of the CETV. It takes account

of the increase in accrued pension

due to inflation and contributions

paid by the employee and is calculated

using common market valuation factors

for the start and end of the period.

5

emuneration of commission and committee members (audited)The total cost of external commission appointments in the period was

£104,131(2004/05: £116,523) and wholly relate to basic fees in respect

of their duties as commissioners and members of advisory committees

and panels. No commissioner received any performance-related fees. The

emoluments of the chair, John Sorrell, the highest-paid commissioner were

£21,588 (2004/05 – three months, appointed in December 2004: £12,762).

The emoluments of the other commissioners were as follows:

Mr Paul Finch OBE (Deputy chair)

(Acting chair from July to Dec 04) 4 20

Mr Alan Barber 3 5

Ms Irena Bauman 3 5

Mr Brian Boylan 3 5

Ms Anthea Case CBE 3 2

Ms Louisa Hutton 3 5

Mr Paul Morrell 3 5

Mr Robin Nicholson CBE 4 9

Mr Ben Page 3 5

Mr Sunand Prasad 3 5

Mr Jason Prior 3 5

Mr Dickon Robinson CBE 4 9

Sir Nicholas Serota 3 5

Dr Ken Shuttleworth 3 5

Mr Les Sparks OBE 4 9

The commission reimburses travel and subsistence expenses necessarily

incurred by commission members attending meetings or undertaking other

tasks arising from their membership, in accordance with the conditions

and at the rates applying to the commission’s employees. Commission

members do not become members of a pension scheme and there are

no superannuation payments relating to the fees paid to them.

Dr ichard SimmonsAccounting officer

and company secretary

Nine months to

31 December

2005

£0,000

2004/05

£0,000


6

Statement on internal control

Scope of responsibility■ As accounting officer, I have

responsibility for maintaining

a sound system of internal

control that supports the

achievement of CABE’s aims

and objectives, whilst

■ Safeguarding the public funds

and assets for which I am personally

responsible, in accordance with

the responsibilities assigned

to me in Governmentaccounting, and

■ Ensuring compliance with therequirements of CABE’smanagement statement andfinancial memorandum andthe CABE-DCMS-ODPMrelationship protocol.

The purpose of the systemof internal controlThe system of internal controlis designed to manage riskto a reasonable level rather than toeliminate all risk of failure to achieveaims and objectives; it can thereforeprovide only reasonable and notabsolute assurance of effectiveness.The system of internal control isbased on an ongoing process designedto identify and prioritise the risksto the achievement of CABE’s aimsand objectives, to evaluate thelikelihood of those risks beingrealised and the impact shouldthey be realised, and to managethem efficiently, effectively andeconomically. The system of internalcontrol has been in place in CABE,the company, for the nine-monthperiod ended 31 December 2005and up to the date of approvalof the annual report and accounts,for the new statutory body, andaccords with Treasury guidance.

Capacity to handle riskOverall responsibility for riskmanagement rests with the chiefexecutive, supported by the riskmanagement committee. The risk

management committee is formedby the senior management team.It meets twice a year to re-evaluateall risks on the risk register, assessCABE’s risk appetite and to reviewCABE’s management of risk.There is a risk management strategywhich provides guidance to staffon identifying, evaluating, reportingand managing risks. Additionally, riskmanagement training for managershas taken place.

The risk and control frameworkA risk register was created andadopted during 2002/03, andfurther developed in 2003/04.A comprehensive risk managementstrategy was developed in accordancewith HM Treasury guidance andadopted by the audit committee.The key elements of the strategyare as follows:

■ The establishment of the riskmanagement committee as thekey forum for risk identification,recording and management

■ The risk management committeereports the revised risk registerto the audit committee on asix-monthly basis.

■ The annual internal auditwork plan is focussed on testingthe internal controls associatedwith the key risks identifiedin the risk register.

■ In between risk managementcommittee meetings, it is theresponsibility of directors to notifythe chief executive of significantnew or changed risks, so thatthey can be evaluated, managedand recorded, pending confirmationby the risk management committee

An internal audit service is providedby RSM Robson Rhodes, whichoperates to standards definedin the government internal auditmanual. They submit regular reportsto the audit committee that includestheir independent opinion on the

adequacy and effectiveness of thecommission’s system of internalcontrol together with recommendationsfor improvement. The audit committeemet three times between April andDecember 2005.

The board receives periodicreports from the chairman of theaudit committee concerning internalcontrol and we require regularreports from managers on thesteps they are taking to managerisks in their areas of responsibilityincluding progress reportson key projects.

eview of effectivenessAs accounting officer, I haveresponsibility for reviewing theeffectiveness of the system of internalcontrol. My review of the effectivenessof the system of internal control isinformed by the work of the internalauditors and the executive managerswithin CABE who have responsibilityfor the development and maintenanceof the internal control framework,and comments made by the externalauditors in their management letterand other reports. I have beenadvised on the implications of theresult of my review of the effectivenessof the system of internal control bythe board and the audit committeeand a plan to address weaknessand ensure continuous improvementof the system is in place.

Audit committeeThe audit committee is comprisedof up to six commissioners.Additionally, representativesfrom CABE’s internal andexternal auditors are invitedto all meetings and receive copiesof all audit committee papers.

Internal auditInternal audit functions are providedby RSM Robson Rhodes. Theyprovide an independent andobjective opinion on all aspectsof CABE’s work including itsrisk management and conflictof interest registers.

They attend all meetings of the auditcommittee as well as providingan annual review of all the workcovered in the year.

Their work will also be reviewedexternally to ensure compliance.

Significant internal controlproblems in the periodto 31 December 2005I am aware of no significant internalcontrol problems that would prejudicemy assurance for the period.

Due to a misunderstanding CABEpaid its staff their annual salary increasebefore gaining approval for its pay remit.Systems have now been put into placeto ensure that this is not repeated.

Dr ichard SimmonsAccounting officerand company secretary

Statement of thecommission and chiefexecutive’s responsibilities

The commission is required toprepare a statement of accountsfor each financial year in the formand on the basis directed by thesecretary of state for culture,media and sport, with the consentof the Treasury. The accounts areprepared on a full resourceaccounting basis and mustshow a true and fair view of thecommission’s state of affairsat the year end and of its income,expenditure and cash flows forthe financial year.

In preparing the accounts thecommission is required to:■ Observe the accounts direction

issued 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 estimatesthat are reasonable and prudent

■ State whether applicableaccounting standards have beenfollowed as set in the financialreporting manual, and discloseand explain any material departuresin the financial statements

■ Prepare the financial statementson the going concern basis,unless it is inappropriate to presumethat the commission will continuein operation.

The accounting officer for theDepartment for Culture, Mediaand Sport has designated the chiefexecutive of the Commissionfor Architecture and the BuiltEnvironment as the accountingofficer for the commission. Hisrelevant responsibilities as accountingofficer, including his responsibilityfor the propriety and regularityof the public finances for which heis answerable and for the keepingof proper records, are set out in the

on-departmental public bodies’accounting officers’ memorandum,issued by HM Treasury and publishedin Government accounting.

The commissioners are responsiblefor ensuring that the foreword, thecommissioners’ report including themanagement commentary and otherinformation included in the annualreport is prepared in accordancewith applicable law and UnitedKingdom generally acceptedaccounting practices, togetherwith its accounts direction.

Independent auditors’ reportto the members of theCommission for Architectureand the Built Environment

We have audited the financialstatements of the Commission forArchitecture and the Built Environmentfor the period ended 31 December2005, which comprise the incomeand expenditure account, the balance

sheet, the cash flow statement andthe related notes. These financialstatements have been preparedunder the accounting policies setout therein.

This report is made solely to thecompany’s members, as a body,in accordance with section 235of the Companies Act 1985. Ouraudit work has been undertaken sothat we might state to the company’smembers those matters we arerequired to state to them in anauditor’s report and for no otherpurpose. To the fullest extentpermitted by law, we do not acceptor assume responsibility to anyoneother than the company and thecompany’s members as a body,for our audit work, for this report,or for the opinions we have formed.

7

espective responsibilitiesof the commission, the chiefexecutive and auditorsThe commission and chief executive’sresponsibilities for preparing theannual report and financial statements,in accordance with relevant legaland regulatory requirements andUnited Kingdom accounting standards(United Kingdom Generally AcceptedAccounting Practices), and for ensuringthe regularity of financial transactions,are set out in the statement of thecommission and chief executive’sresponsibilities. The commission andchief executive are also responsiblefor the preparation of the foreword.

Our responsibility is to audit thefinancial statements in accordancewith relevant legal and regulatoryrequirements and InternationalStandards on Auditing (UKand Ireland).

We report to you our opinion asto whether the financial statementsgive a true and fair view and havebeen properly prepared in accordancewith the Companies Act 1985 andwith the accounts direction issued bythe secretary of state for culture, mediaand sport; and whether in all materialrespects the expenditure and incomehave been applied to the purposesintended by parliament and thefinancial transactions conform to theauthorities which govern them. Wealso report to you if, in our opinion, theforeword and commissioners’ reportare not consistent with the financialstatements, if the commissionhas not kept proper accountingrecords, if we have not received allthe information and explanations werequire for our audit, or if informationspecified by law regardingcommissioners’ remunerationand transactions with thecommission is not disclosed.

We review whether the statementon page 6 reflects the commission’scompliance with HM Treasury’sguidance on the statement on internalcontrol and we report if it does not.

We are not required to consider,whether the accounting officer’sstatements on internal control coverall risks and controls, or to forman opinion on the effectivenessof the commission’s corporategovernance procedures or its riskand control procedures.

We read the other informationcontained in the annual report andconsider whether it is consistentwith the audited financial statements.This other information comprisesonly the foreword, the commissioners’report and the unaudited part of theremuneration report. We considerthe implications for our audit reportif we become aware of any apparentmis-statements or materialinconsistencies with the financialstatements. Our responsibilities donot extend to any other information.

Basis of opinionWe conducted our audit in accordancewith International Standards onAuditing (UK Ireland) issued bythe Auditing Practices Board. Anaudit includes examination, on atest basis, of evidence relevant tothe amounts, disclosures and regularityof financial transactions includedin the financial statements and thepart of the remuneration reportto be audited. It also includesan assessment of the significantestimates and judgements madeby the commission and chiefexecutive in the preparation of thefinancial statements, and of whetherthe accounting policies areappropriate to the commission’scircumstances, consistently appliedand adequately disclosed.

We planned and performed our auditso as to obtain all the informationand explanations which we considerednecessary in order to provide us withsufficient evidence to give reasonableassurance that the financial statementsand the part of the remunerationreport to be audited are free frommaterial mis-statement, whethercaused by fraud or other irregularity

or error and that, in all materialrespects, the expenditure and incomehave been applied to the purposesintended by parliament and thefinancial transactions conform tothe authorities which govern them.In forming our opinion, we havealso evaluated the overall adequacyof the presentation of informationin the financial statements.

OpinionIn our opinion:

■ The financial statements givea true and fair view in accordancewith United Kingdom GenerallyAccepted Accounting Practiceof the state of the Commissionfor Architecture and the BuiltEnvironment affairs at 31 December2005 and of the surplus, for theperiod then ended

■ The financial statements have beenproperly prepared in accordancewith the Companies Act 1985and with the accounts directionissued by the secretary of statefor culture, media and sport

■ The information given in thecommissioners report is consistentwith the financial statements, and

■ In all material respects theexpenditure and income havebeen applied to the purposesintended by parliament andthe financial transactionsconform to the authoritieswhich govern them.

PKF (UK) LLPRegistered auditorsLondon, UK21 July 2006


8

Income and expenditure accountas at 31 December 2005

Income

Grant-in-aid 2 7,443,540 11,111,223

Release of deferred grant-in-aid 11 270,256 322,507

Other operating income 3 268,545 395,285

Interest receivable 38,675 26,948

Other income 6,206 922

Total income 8,027,222 11,856,885

Expenditure

Staff costs 4 3,232,321 3, 805,441

Other operating costs 5 4, 784,719 8, 042, 774

Total expenditure 8, 017,040 11,848, 215

Operating surplus for the year 10,182 8, 670

Reversal of notional cost of capital 1.8 954 1,104

Surplus for the year before taxation 11,136 9, 774

Taxation 6 7,348 4, 025

Surplus for the year after taxation 3,788 5,749

Accumulated surplus brought forward 32,392 26,643

Accumulated surplus carried forward 12 36,180 32,392

All income and expenditure from operations transferred to CABE, the new statutory body.There were no recognised gains or losses other than the surplus for the year.

Notes

Nine months to31 December

2005£

Year to31 March

2005£

9

Balance sheet as at 31 December 2005

Fixed assets 7 1,479, 570 242,686

Current assets

Debtors 8 347, 170 879,875

Cash at bank and in hand 1,994,575 2,878,458

2,341, 745 3,758,333

Creditors

Amounts falling due within one year 9 (2,305,565) (3,725,941)

Net current assets 36,180 32,392

Total assets less current liabilities 1,515,750 275,078

Deferred capital grant 11 (1,479,570) (242,686)

Net assets 36,180 32,392

Financed by: capital and reservesAccumulated surplus 12 36,180 32,392

Government funds 13 36,180 32,392

Dr ichard Simmons John SorrellAccounting officer Chairmanand company secretary 18 July 200620 July 2006

Cash flow statement for the nine monthsended 31 December 2005

Net cash (outflow)/inflow fromoperating activities 14 (922,558) 1,672,777

Returns on investment andservicing of financeInterest received 38,675 26,948

Taxation paid – –

(Decrease)/increase in cash 15 (883,883) 1,699,725

Notes

31 December2005

£

31 March2005

£


10

Notes to the accountsfor the nine months ended31 December 2005

Accounting policies

1.1 Basis of accountingThe accounts have been preparedin accordance with a directionissued by the secretary of statefor culture, media and sport.

The accounts have been preparedunder the modified historical costconvention. Without limiting theinformation given, the accountsmeet the accounting and disclosurerequirements of the CompaniesAct 1985 and the accounting andfinancial reporting standards issuedor adopted by the AccountingStandards Board in so far as theserequirements are appropriate. Thedirection exempts the commissionfrom the requirement to producea note of historical cost profitsand losses.

As set out in the foreword to theaccounts, on 31 December 2005the company was dissolved anda new statutory body, also calledCABE, was established on 1 January2006. All of the functions, assetsand liabilities of the companywere transferred to the new bodyand accordingly the accountsare prepared on the goingconcern 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 of appropriateindices where such adjustmentis material to the accounts.

Computer software is treatedas an intangible item and expensedin the year of purchase. Surplusesor deficits on revaluation are taken

Notes


2005£

Year to31 March

2005£

11

to the revaluation reserve, exceptfor any impairment which is chargedto the income and expenditureaccount when recognised.

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

■ Fixtures and fittings – three years

■ Leasehold improvements –five years (or the length of thebuilding lease if less)

■ Office and IT equipment –three years

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

1.4 rant-in-aidGrant-in-aid provided for revenueexpenditure purposes is creditedto the income and expenditureaccount on receipt. Grant-in-aidapplied to the purchase of tangiblefixed assets is credited to thedeferred capital grant accountand released to the income andexpenditure account over theestimated operational lives of therelated assets.

1.5 Operating incomeOperating income is shown grossof VAT as the commission is notregistered for VAT.

1.6 PensionsPast and present employees arecovered by the provisions of thecivil service pension scheme whichis described in the remunerationreport. The defined benefit elementof the scheme is unfunded andis non-contributory except inrespect of dependents’ benefits.The commission recognises the

expected cost of these elementson a systematic and rational basisover the period during whichit benefits from employees’ servicesby payment to the principal civilservice pension scheme (PCSPS)of amounts calculated on an accruingbasis. Liability for payment of futurebenefits is a charge on thePCSPS. In respect of the definedcontribution elements of thescheme, the commissionrecognises the contributionspayable for the year.

1.7 Foreign currencyTransactions denominated in foreigncurrency are translated at the rateof exchange ruling on the date ofthe transaction unless coveredby a forward contract. Assets andliabilities denominated in foreigncurrency are translated at the rateof exchange ruling at the balancesheet date.

Transaction and translation gains andlosses are credited or charged to theincome and expenditure account.

1.8 Capital chargeIn line with HM Treasury requirements,a capital charge reflecting the costof capital employed is calculated at3.5 per cent of average net assetsemployed during the year andincluded in operating costs. Inaccordance with Treasury guidancethe notional charge is credited backto the income and expenditureaccount before taking the result forthe year to the general reserve.

1.9 rants paidGrants paid are accounted foron an accruals basis.

1.10 Operating leasesPayments made under operatingleases are charged to the income andexpenditure account on a straightline basis over the term of the lease.

12

2 rant-in-aid

Grant-in-aid received 8,705,680 11,533,074

Transferred to deferred capitalgrant account in respect of purchaseof fixed assets (note 11) (1, 507,140) (6,851)

Deferred grants 245,000(415,000)

Total 7,443,540 11,111,223

Grant-in-aid of £3,681,295 was made available by the Department for Culture, Media and Sport and£5,209,297 was made available by the Office of the Deputy Prime Minister. This included £184,912for CABE Education Foundation (see note 16).

3 Other operating income

NHS Estates 19,949 0

Arts Council of England 23,699 61, 735

Housing Corporation 42,834 65, 135

Department for Education and Skills 56,982 0

English Heritage 0 17,537

Higher Education Funding Council for England 0 54, 000

Home Office 1,168 10, 757

English Partnerships 0 18, 515

MLA Council 0 92, 225

Department for Constitutional Affairs 5, 771 0

Other income 118,142 12,881

Corporation of London 0 62,500

Total 268,545 395, 285


2005£

Year to31 March

2005£


2005£

Year to31 March

2005£


13

emuneration of commissionersand the management teamDetails of the remuneration andpension benefits of commissionersand the management team aregiven in the remuneration reportstarting on page 3.

SuperannuationThe PCSPS is an un-fundedmulti-employer defined benefitscheme, but CABE is unable toidentify its share of the underlyingassets and liabilities. A full actuarialvaluation was carried out as atMarch 2003. PCSPS preparesits own scheme statements.

For the nine-month period toDecember 2005 employers’contributions of £459,076 werepayable to the PCSPS (2004-05£406,856) at rates in the range of16.2 to 24.6 per cent of pensionablepay, based on salary bands. Employercontributions are to be reviewedevery four years following a fullscheme valuation by the governmentactuary. The contribution rates reflectbenefits as they are accrued, notwhen the costs are actually incurred,and reflect past experienceof the scheme.

Staff numbersThe commission counts the numberof staff in post to include all permanent,fixed term and temporary staff of alltypes who are paid as employeesthrough the payroll. On this basisthe average number of whole-timeequivalent persons (includingsenior management) employedfor the period to December 2005was 96.7 (2005: 83).

4 Staff costs

Salaries and wages 2,457,221 2,968,568

Temporary staff costs 109,134 189,462

Social security costs 206,890 240,555

Superannuation 459, 076 406,856

Total 3,232,321 3,805,441

Staff numbers

Corporate 16 16.6

Learning and development 21.5 15.6

Policy and communications 19.6 18.8

Enabling 18.2 12.2

Design review 9.4 7.8

Space 12 12

Total 96.7 83

5 Other operating costs

Programme costs 1,971,032 4,425,634

Grants 873, 672 1,623,081

Administration expenses 401,381 622,887

Rent, rates and maintenance 930,655 641,803

Depreciation 270,256 322,507

Professional fees 110, 783 162,430

Travel, subsistence and allowances 195,318 215,922

Auditors’ remuneration 30,668 16,500

Non-audit fees 0 10,906

Notional cost of capital (Note 1.8) 954 1,104

Total 4,784,719 8,042,774

During the nine months to 31 December 2005 the commission made payments under operating leasesin respect of land and buildings of £195,102 (2005: £444,138)


2005£

Year to31 March

2005£


2005No.

Year to31 March

2005No.


2005£

Year to31 March

2005£

6 Taxation

Corporation tax @ 19 7,348 4,025

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

8 Debtors

Amounts falling due within one year:

Trade debtors 133,577 333,542

Inter-company account 184,912 496,926

Prepayments 28,681 49,407

347,170 879,875

Debtors includes amounts owing to:

Local authorities 39,323 76,250

Other government bodies 110,567 257,289

Others 197,280 546,336

347,170 879,875


14


2005£

Year to31 March

2005£

7 Tangible fixed assets

As at 1 April 2005 15,923 680,945 222,906 398,340 1,318,114

Additions – 1,406,585 100,555 – 1,507,140

Disposals – (680,945) (3,317) – (684,262)

As at 31December 2005 15,923 1,406,585 320,144 398,340 2,140,992

Accumulated depreciation

As at 1 April 2005 9,518 614,663 169,373 281,874 1,075,428

Charge for year 3,981 156,342 47,292 62,641 270,256

Disposals – (680,945) (3,317) – (684,262)

As at 31December 2005 13,499 90,060 213,348 344,515 661,422

Net book value

As at 31 December 2005 2,424 1,316,525 106,796 53,825 1,479,570

As at 31 March 2005 6,405 66,282 53,533 116,466 242,686

Officeequipment

£

Leaseholdimprovements

£

Fixturesand fittings

£

ITequipment

£Total

£

31 December2005

£

31 March2005

£

15

9 Creditors


Trade creditors 619,876 1,596,367

Other creditors 350,145 654,291

Accruals and deferred income 1,335,544 1,475,283

2,305,565 3,725,941

Creditors includes amounts owing to:

Local authorities 17,915 31,514

Other government bodies 1,032,318 624,039

Others 1,255,332 3,070,388

2,305,565 3,725,941

10 Operating leases

Annual commitments in respectof leases expiring:

Buildings 0 0 722

11 Deferred capital grant

Balance at 1 April 2005 242,686

Grant-in-aid received for the purchaseof tangible fixed assets 1,507,140

Release of deferred grant in respectof depreciation of tangible fixed assets (270,256)

Balance at 31 December 2005 1,479,570

31 December2005

£

31 March2005

£

Withinone year

£’000

Between2-5 years

£’000

Over5 years£’000


2005£

12 eserves

Accumulated surplus

Balance brought forward as at 1 April 2005 32,392

Surplus for the nine months to December 2005 3,788

Balance carried forward as at 31 December 2005 36,180

13 econciliation of movements in government funds

Net funds at 1 April 2005 32,392

Surplus for the period 3, 788

Net funds at 31 December 2005 36,180

14 econciliation of the operating deficitto net cash flow from operating activities

Operating surplus/(deficit) 10,182 8,670

Decrease /(Increase) in debtors 532,708 (54,403)

(Decrease)/Increase in creditors (1,420,379) 1,748,379

Cost of capital charge 954 1,104

Interest received (38,675) (26,948)

Depreciation 270,256 322,507

Taxation (7,348) (4,025)

Release of deferred grant in respectof depreciation and loss on disposalof fixed assets (270,256) (322,507)

Net cash (outflow)/inflow from operating activities (922,558) 1,672,777

15 Analysis of changes in cash during the period

Cash at bank and in hand 2,878,458 (883,883) 1,994,575


16

16 elated party transactionsand connected bodiesCABE is sponsored by theDepartment for Culture, Media andSport (DCMS) which is regardedas a related party. The only materialtransactions with the DCMS werein respect of grant-in-aid (note 2).In addition CABE receives furtherfunding from the Office of theDeputy Prime Minister (ODPM)which has now been changed tothe Department of Communitiesand Local Government. The materialtransactions with the ODPM werein respect of grant-in-aid (note 2).

The CABE Education Foundation,a registered charity and companylimited by guarantee, is alsoregarded as a related party. Therewere various transactions with theEducation Foundation throughoutthe year. CABE provides managementservices to the Education Foundationand these are charged at cost.

The trustees of the foundation areeither current or former CABEcommissioners. Those servingas trustees during the year were:

Sophie Andreae – chair – formerCABE commissioner

Brian Boylan – currentCABE commissioner

Robin Nicholson – currentCABE commissioner

Dickon Robinson – currentCABE commissioner

Gillian Wolfe – formerCABE commissioner

SecretaryBen Spencer (resigned 27 January2006) – CABE staff member.


2005£


2005£


2005£

Year to31 March

2005£

At 1 April2005

£

Cashinflow

£

At 31December

2005£

17

The company was dissolved on5 May 2006. At the time of thedissolution the company had noassets. Expenditure for the ninemonths to 31 December 2005totalled £184,912. These costswere met directly by CABE andthen re-charged to CABE EducationFoundation. In order to enableCABE Education Foundation tomeet these costs, CABE made amatching donation of £184,912.A copy of the Education Foundationfinancial statements are availablefrom the commission’s offices.

There were also material transactionswith the following entities which aresponsored by the DCMS

■ Arts Council of England

■ English Heritage.

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

■ Department forConstitutional Affairs

■ Department for Educationand Skills

■ English Partnerships

■ Home Office

■ Housing Corporation.

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

■ Irena Bauman, a commissioner,is a director of Bauman LyonsArchitects which received£701 as payment in respectof enabling services.

■ Paul Finch, a commissioner,is editorial director of EMAPConstruct which receivedpayment of £2,566 in respectof advertisements.

■ Louisa Hutton, a commissioner,is an external examiner for theUniversity of Westminster whichreceived fee payments of £16,382

■ Jason Prior, a commissioner, ismanaging director of EDAW plcwhich received payment of£7,758 in respect of providingenabler services.

■ Les Sparks, a commissioner,is a commissioner for EnglishHeritage. He is also a visitingprofessor for the University of theWest of England, which receivedpayments of £2,250.

■ Sunand Prasad, a commissioner,is engaged in voluntary work for theConstruction Industry Council, whichreceived grant funding of £42,796.

17 Financial instrumentsThe commission is required todisclose the role financial instrumentshad during the period, in creating orchanging the risks faced in undertakingits activities. The commission’sactivities and the way governmentbodies are financed, means thatthe commission is not exposedto the degree of financial risk facedby business entities. The commissionhas no powers to borrow or investsurplus funds, and financial assetsand liabilities generated by day to dayoperational activities are not held tochange the risks facing the commissionin undertaking its activities.

Liquidity risk: no significant exposuregiven the commission’s net resourcerequirement is financed throughgrant-in-aid.

Interest rate risk: no exposure as thecommission’s main financial assetsand liabilities carry nil or fixed ratesof interest.

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

Commission for Architecture andthe Built Environment

Chief executive’s foreword to the accounts

I am pleased to introduce the published accounts of CABE, theCommission for Architecture and the Built Environment, for the threemonths ended 31 March 2006.

CABE was established on 1 September 1999 as a company limitedby guarantee and a non-departmental public body sponsored by theDepartment for Culture, Media and Sport.

Under the Clean Neighbourhoods and Environment Act 2005, CABE thecompany was dissolved on 31 December 2005 and a new statutory bodyalso called CABE was established on 1 January 2006. The functions,assets and liabilities of the old body have been transferred to the newbody. This annual report contains the first set of accounts of CABEthe statutory body.

CABE receives core funding from the Department for Culture, Media andSport (DCMS) and the Department for Communities and Local Government(DCLG). DCMS acts as the principal sponsor department, and I amaccountable to parliament through the permanent secretary at DCMS.

Each year, funding agreements between CABE and its funding departments,DCMS and DCLG set out targets that should be achieved in the year. Theseinclude both operational and outcome targets. Full details of the targetsand performance against each is shown in the annual report for the yearended 31 March 2006, which incorporates the results of both the oldand the new bodies, which accompanies these financial statements.

Dr ichard SimmonsChief executive and accounting officer

Management commentary

Development and performanceduring the three months ended31 March 2006Our website has been redesignedand launched and has attractedmany more visits. It has also enabledus to put many of our publicationsavailable for download directly fromthe site.

In January CABE held its first everCABE ‘family’ conference whichincluded all CABE staff and membersof the CABE extended family.It is hoped that we can repeat thison a regular basis as it provedsuch a success.

Position at the end of the yearThe reserves at the end of March2006 stand at £1,432,428.

Cash managementCash balances increased by£31,163 in the three-month periodto 31 March 2006. Most suppliers’invoices were paid in accordancewith guidelines. Credit controlmeasures were effective in limitingexposure to the risk of bad debts.

Fixed asset managementFixed assets are regularly reviewedto ensure that they are fit forthe purpose for which they arebeing used.

Performance against targetsA detailed report of performanceagainst targets can be found in theannual review for the year to 31March 2006, which accompaniesthese financial statements.

18

Financial statements for thethree months ended 31 March 2006

Management trends and factorsunderlying performance duringthe three months ended31 March 2006The first spring school, modelledafter our very successful summerschool, was held over four daysin March. The focus of this wason Space matters and the feedbackreceived from the participants waspositive enough for CABE to considerwhether it could be made intoan annual event and so assist inmeeting the needs of the builtenvironment sector amongCABE’s stakeholders.

Trends and factors affectingfuture performance

StrategiesThe strategic aim of CABE for thenext year is to inspire the nationon the merits of good architecture,influence decisions on design ofbuildings and planning to improveon what is being built.

CABE aims to retain its core valuesand belief in people’s right to liveand work in buildings which inspireas well as being functional and fitfor purpose. CABE will continueto prove in the coming year thatgreat architecture can improvepeople’s lives.

Commissioners’ report

The accounts have been producedin conformance with an accountsdirection given by the secretaryof state for culture, media andsport on 21 February 2002.The text of the direction is availablefrom the commission.

Principal activity of thecommissionThe commission’s principal activityis the promotion of education andhigh standards in, and understandingand appreciation of architecture,and the design, managementand maintenance of thebuilt environment.

Financial performanceThe accounts for the period ended31 March 2006 show a surplus ofincome over expenditure of £16.Total assets less current liabilitiesat 31 March 2006 amountedto £1,432,428.

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 within30 days.

For the three months ending31 March 2006 the percentageof invoices paid within 30 dayswas 92 per cent.

Code of best practiceon corporate governanceThe commission complies withall the relevant requirementsof HM Treasury guidance relatingto corporate governance.

Open governmentUnder the open government code,the commission does not chargefees for requested information.No requests have been refusedin the three months ended31 March 2006.

Future developmentsThe planned developmentof CABE’s activities until theend of the financial year2006/07 is set out in thepublished summary of itscorporate strategy for2004/05-2006/07.

Commission membersCommissioners are all appointedby the DCMS through a processof competitive recruitment.They are usually appointed foran initial period of four yearsat the end of which they areeligible to serve a furtherfour years.

The following persons weremembers of the commissionas at 31 March 2006:

Mr John Sorrell CBE (Chair)Mr Paul Finch OBE (Deputy chair)Mr Alan BarberMs Irena BaumanMr Brian BoylanMs Anthea Case CBEMs Louisa HuttonMr Paul MorrellMr Robin Nicholson CBEMr Ben PageMr Sunand PrasadMr Jason PriorMr Dickon Robinson CBESir Nicholas SerotaDr Ken ShuttleworthMr Les Sparks OBE.

Chief executiveThe chief executive and accountingofficer is Richard Simmons.

Members of the audit committeeSir Nicholas Serota (Chair)Mr Paul Finch OBEMs Anthea Case CBEMr Paul MorrellMr Sunand Prasad.

egister of members’ interestsA register of members’ interestsis maintained by the commissionand held at 1 Kemble Street,London WC2B 4AN. The registeris available 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.

Employee relationsand communicationsDue to the size of the organisation,consultation and communicationwith employees takes place on aninformal basis.

19

Equality of opportunityThe commission is committed toequality of opportunity in the workplaceand has policies and proceduresin place to ensure that employmentand advancement are judged solelyon the basis of ability, qualificationsand suitability for the work available.

The commission’s policy is thatdisablement is no bar to recruitmentor to advancement withinits workforce.

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 forthe safe conduct of operations.The commission also accepts itsresponsibility under the Act for thehealth and safety of others whomay be affected by its activities.A health and safety committeehas been established to monitorsafety performance.

Environmental policyThe commission has adopted the ‘greenhousekeeping strategy’ promulgatedby its sponsor department, DCMS,as far as is practicable.

AuditorsSince CABE became a statutory bodyon 1 January 2006, the accounts havebeen audited by the National AuditOffice. The audit fee for the three monthsended 31 March 2006 is £8,000.

Disclosure of information to auditorsAs accounting officer, I confirm thatthere is no relevant audit informationof which the National Audit Officeis unaware. I have taken all of thesteps that I ought to have taken tomake myself aware of any relevantaudit information and to establishthat the National Audit Office areaware of that information.

emuneration report

emuneration policyThe remuneration of the chief executiveand his terms and conditions ofemployment must be approvedby DCMS. For all other directors,CABE determines their terms andconditions of employment subjectto an agreed annual pay negotiatingremit, which will be subject to theagreement of DCMS, and, whererequired, HM Treasury.

The remuneration committeecomprises the chair, the deputychair and one other memberof the commission.

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

The annual review of the remunerationof the chief executive comprisingsalary and bonus is determinedby the remuneration committee.

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.

All of the directors covered by thisreport hold appointments, which areopen-ended until they reach the normalretiring age of 60. Early termination,other than for misconduct, wouldresult in the individual receivingcompensation as set out in the civilservice compensation scheme.

Salaries and pensionbenefits (audited)The chief executive was thehighest-paid employee. His totalemoluments for the three monthsto March 2006 was £40,661,comprising salary of £26,411,consolidated bonus of £3,483and unconsolidated bonusof £10,767.

The remuneration of the membersof the senior management team fellwithin the ranges set out opposite.

We were unable to get cashequivalent transfer value (CETV)figures for the three-month periodto 31 March 2006 so the figuresprovided are for the full yearto March 2006.

emuneration‘Remuneration’ includes gross salary;performance pay or bonuses; overtime;reserved rights to London weightingor London allowances; recruitmentand retention allowances; privateoffice allowances and any otherallowance to the extent thatit is subject to UK taxation.The report is based on paymentsmade by CABE and thus recordedin these accounts.

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

PensionsPension benefits are providedthrough the civil service pensionarrangements. From 1 October2002, civil servants may be in oneof three statutory-based ‘finalsalary’ defined benefit schemes(classic, premium, and classic plus).The schemes are unfunded with thecost 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).


20

Salaries and pensionbenefits (audited)The chief executive was the highestpaid employee. His total emolu-ments for the nine months to 31December 2005, were £71,250(seven months 2004/5:£50,775 -appointed September 2004).

The remuneration of the other mem-bers of the senior managementteam fell within the ranges set outon the following page. We wereunable to get CETV figures for thenine-month period to 31 December2005 so the figures provided arefor the full year to March 2006.

emunerationRemuneration includes gross

salary; performance pay or bonus-es; overtime; reserved rights toLondon weighting or Londonallowances; recruitment and reten-

tion allowances; 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. Noamounts have been paid in the peri-od in respect of compensation toformer senior managers.

Benefits in kindThe monetary value of benefits inkind covers any benefits providedby the employer and treated by theInland Revenue as a taxable emolu-ment. There were no benefits inkind in the period.

Joanna Averley Consent to disclosure withheldDeputy chief executiveand director of enabling

Matthew BellDirector of policyand communications

Jonathan Davis Consent to disclosure withheldActing director of learningand development

Paula HarrisDirector of resources

Julia ThriftDirector of CABE Space

Selina MasonDirector of architectureand design review

Richard Simmonschief executive officer

NineMonths toDecember2005 2004/05

Realincrease inpensionand relatedlump sum

Totalaccruedpension atage 60 and31/12/05and relatedlump sum

CETV at31/03/05

CETV at31/12/06

Realincreasein CETV

45-50

50-55

45-50

45-50

70-75

60-65

0

55-60

0

50-55

0-2.5

0-2.5

0-2.5

0-2.5

0-2.5

2.5-5

0-5

2.5-5

0-5

0-5

13

0

16

15

12

31

19

36

42

44

10

16

11

20

26


5

Joanna Averley Consent to disclosure withheldDeputy chief executiveand director of enabling

Matthew BellDirector of policyand communications

Jonathan Davis Consent to disclosure withheldActing director of learningand development

Paula HarrisDirector of resources

Julia ThriftDirector of CABE Space

Selina MasonDirector of architectureand design review

Richard SimmonsChief executive officer

Salarythree

months toMarch2006

Realincrease in

pensionand related

lump sum

Totalaccrued

pension atage 60 and

31/03/06and related

lump sumCETV at

31/03/06CETV at

31/03/06

Realincreasein CETV

15-20

15-20

15-20

15-20

40-45

0-2.5

0-2.5

0-2.5

0-2.5

0-2.5

2.5-5

0-5

2.5-5

0-5

0-5

13

0

16

15

12

31

19

36

42

44

10

16

11

20

26


Employee contributions are set at therate of 1.5 per cent of pensionableearnings for classic and 3.5 percent for premium and classic plus.Benefits in classic accrue at therate of 1/80th of pensionable salaryfor each year of service. In additiona lump sum equivalent to three years’pension is payable on retirement.For premium, benefits accrue at therate of 1/60th of final pensionableearning for each year of service.Unlike classic, there is no automaticlump sum (but members may giveup some of their pension to providea lump sum), classic plus is essentiallya variation of premium, but withbenefits in respect of service before1 October 2002 calculated broadlyas per classic.

The partnership pension account isa stakeholder pension arrangement.The employer makes a basiccontribution of between 3 per cent

and 12.5 per cent (dependingon the age of the member) intoa stakeholder pension productchosen by the employee.The employee does not haveto contribute but, where they domake contributions, the employerwill match these up to a limitof 3 per cent of pensionable salary(in addition to the employer’s basiccontribution). Employers alsocontribute a further 0.8 per centof pensionable salary to cover thecost of centrally provided riskbenefit cover (death in serviceand ill health retirement).

Further details about thePCSPS arrangements canbe found at the website,www.civilservice-pensions.gov.uk.

For the three-month periodto March 2006, employers’contributions of £159,455 were

payable to the PCSPS at oneof the four rates in the range of16.2 to 24.6 per cent of pensionablepay based on salary bands.

Columns 4 and 5 of the table showthe cash equivalent transfer value(CETV) of the member’s pensionbenefits accrued at 1 April 2005and the end of the reporting period.A CETV is the actuarially assessedcapitalised vale of the pension schemebenefits accrued by a member at aparticular point in time. The benefitsvalued are the member’s accruedbenefits and 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 whenthe member leaves a scheme andchooses to transfer the pensionbenefits they have accrued in theirformer scheme.

21

Figure in £000’s

The pension figures shown relateto the benefits that the individual hasaccrued as a consequence of theirtotal service, not just their currentappointment. CETVs are calculatedwithin the guidelines and frameworkprescribed by the Institute andFaculty of Actuaries.

Column 6 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 startand end of the period.

emuneration of commission andcommittee members (audited)The total cost of external commissionappointments in the three-monthperiod was £73,295 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-paid com-missioner, were £21,588.


22

The emoluments of the othercommissioners were as follows:

Mr Paul FinchOBE (Deputy chair) 4

Mr Alan Barber 3

Ms Irena Bauman 3

Mr Brian Boylan 3

Ms Anthea Case CBE 3

Ms Louisa Hutton 3

Mr Paul Morrell 3

Mr Robin Nicholson CBE 4

Mr Ben Page 3

Mr Sunand Prasad 3

Mr Jason Prior 3

Mr Dickon Robinson CBE 4

Sir Nicholas Serota 3

Dr Ken Shuttleworth 3

Mr Les Sparks OBE 4

The commission reimburses traveland subsistence expensesnecessarily incurred by commissionmembers attending meetingsor undertaking other tasks arisingfrom their membership, in accordancewith the conditions and at the ratesapplying to the commission’semployees. Commission membersdo not become members ofa pension scheme and thereare no superannuation paymentsrelating to the fees paid to them.


Three monthsto 31 March

2006£000’s

Statement of the commissionand accounting officer’sresponsibilitiesUnder the Clean Neighbourhoodsand Environment Act 2005, thesecretary of state for culture, mediaand sport, with the consent of theTreasury, has directed the Commissionfor Architecture and Built Environmentto prepare for each financial yeara statement of accounts in the formand on the basis set out in theaccounts direction. The accountsare prepared on an accruals basisand must show a true and fair viewof the commission’s state of affairsat the year-end and of its income,expenditure and cash flows for thefinancial year.

Under the Clean Neighbourhoodsand Environment Act 2005, the firstfinancial year of the commission isthe period starting on the appointedday, and ending on the following31 March. The appointed day wasdesignated as 1 January 2006.

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 applicable accountingstandards as set out in thegovernment financial reportingmanual have been followed,and disclose and explain anymaterial departures in thefinancial statements

■ Prepare the financial statementson a going concern basis.

23

The accounting officer for theDepartment for Culture, Mediaand Sport has designated the chiefexecutive as the accounting officerfor the Commission for Architectureand the Built Environment. Theresponsibilities of an accounting officer,including responsibility for the proprietyand regularity of the public financesfor which the accounting officer isanswerable, for keeping properrecords and for safeguarding theCommission for Architecture andthe Built Environment’s assets,are set out in the ‘accountingofficers’ memorandum’, issuedby the Treasury and publishedin Government accounting.

John SorrellChairman


Statement on internal control

Scope of responsibilityAs accounting officer, I haveresponsibility for maintaininga sound system of internalcontrol that supports theachievement of CABE’s aimsand objectives, whilst:

■ safeguarding the public funds andassets for which I am personallyresponsible, in accordancewith the responsibilitiesassigned to me in Governmentaccounting, and

■ ensuring compliance withthe requirements of CABE’smanagement statement andfinancial memorandum andthe CABE-DCMS-DCLGrelationship protocol.

The purpose of the systemof internal controlThe system of internal controlis designed to manage riskto a reasonable level rather thanto eliminate all risk of failureto achieve aims and objectives;it can therefore provide onlyreasonable and not absoluteassurance of effectiveness.The system of internal controlis based on an ongoing processdesigned to identify and prioritisethe risks to the achievementof CABE’s aims and objectives,to evaluate the likelihood of thoserisks being realised and the impactshould they be realised, and tomanage them efficiently, effectivelyand economically. The systemof internal control has been inplace in CABE for the three monthsended 31 March 2006 and upto the date of approval of theannual report and accounts, andaccords with Treasury guidance.

Capacity to handle riskOverall responsibility for riskmanagement rests with the chiefexecutive, supported by the riskmanagement committee. The riskmanagement committee is formedby the senior management team.It meets twice a year to re-evaluateall risks on the risk register, assessCABE’s risk appetite and to reviewCABE’s management of risk. Thereis a risk management strategy whichprovides guidance to staff onidentifying, evaluating, reportingand managing risks. Additionally,risk management training formanagers has taken place.

The risk and control frameworkA risk register was created andadopted during 2002/03 andfurther developed in 2003/04.A comprehensive risk managementstrategy was developed inaccordance with HM Treasuryguidance and adopted by theaudit committee. The keyelements of the strategy areas follows:

■ The establishment of the riskmanagement committee as thekey forum for risk identification,recording and management

■ The risk management committeereports the revised risk registerto the audit committee ona six-monthly basis

■ The annual internal audit work planis focussed on testing the internalcontrols associated with the keyrisks identified in the risk register

■ In between risk managementcommittee meetings, it is theresponsibility of directors to notifythe chief executive of significantnew or changed risks, so thatthey can be evaluated, managedand recorded, pending confirmationby the risk management committee.

An internal audit service is providedby RSM Robson Rhodes, whichoperates to standards defined in thegovernment internal audit manual.They submit regular reports to theaudit committee that includes theirindependent opinion on the adequacyand effectiveness of the commission’ssystem of internal control togetherwith recommendations for improvement.The audit committee met oncebetween January and March 2006.

The board receives periodic reportsfrom the chair of the audit committeeconcerning internal control and werequire regular reports from managerson the steps they are taking to managerisks in their areas of responsibilityincluding progress reportson key projects.

eview of effectivenessAs accounting officer, I haveresponsibility for reviewing theeffectiveness of the systemof internal control. My review of theeffectiveness of the system of internalcontrol is informed by the workof the internal auditors and theexecutive managers within CABEwho have responsibility for thedevelopment and maintenanceof the internal control framework,and comments made by the externalauditors in their management letterand other reports. I have beenadvised on the implications of theresult of my review of the effectivenessof the system of internal controlby the board and the auditcommittee and a plan to addressweakness and ensure continuousimprovement of the systemis in place.

Audit committeeThe audit committee is comprisedof up to six commissioners.Additionally, representatives fromCABE’s internal and externalauditors are invited to all meetingsand receive copies of all auditcommittee papers.

Internal auditInternal audit functions areprovided by RSM Robson Rhodes.They provide an independent andobjective opinion on all aspectsof CABE’s work includingits risk management and conflictof interest registers. They attendall meetings of the audit committeeas well as providing an annualreview of all the work coveredin the year.

Significant internal controlproblems in the three monthsended March 2006I am not aware of any significantinternal control problems thatwould prejudice my assurancefor the period.

John SorrellChairman


The certificate and report of thecomptroller and auditor generalto the Houses of ParliamentI certify that I have audited the financialstatements of the Commission forArchitecture and the Built Environmentfor the three months ended 31 March2006 under the Clean Neighbourhoodsand Environment Act 2005. Thesecomprise the income and expenditureaccount, the balance sheet, thecashflow statement and statementof total recognised gains and lossesand the related notes. These financialstatements have been prepared underthe accounting policies set outwithin them.

espective responsibilities of theCommission for Architecture andthe Built Environment, accountingofficer and auditorThe Commission for Architectureand the Built Environment andaccounting officer are responsiblefor preparing the annual report, theremuneration report and thefinancial statements in accordancewith the Clean Neighbourhoodsand Environment Act 2005 anddirections made thereunder bythe secretary of state, with theconsent of HM Treasury, and forensuring the regularity of financialtransactions. These responsibilities

are set out in the statementof commission and accountingofficer’s responsibilities.

My responsibility is to audit thefinancial statements in accordancewith relevant legal and regulatoryrequirements, and with internationalstandards on auditing (UK and Ireland).

I report to you my opinion as towhether the financial statementsgive a true and fair view andwhether the financial statementsand the part of the remunerationreport to be audited have beenproperly prepared in accordancewith the Clean Neighbourhoodsand Environment Act 2005 anddirections made thereunder bythe secretary of state, with theconsent of HM Treasury.

I also report whether in all materialrespects the expenditure and incomehave been applied to the purposesintended by parliament and thefinancial transactions conform tothe authorities which govern them.I also report to you if, in my opinion,the annual report is not consistentwith the financial statements, if theCommission for Architecture andthe Built Environment has not keptproper accounting records, if I havenot received all the information andexplanations I require for my audit,or if information specified by relevantauthorities regarding remuneration andother transactions is not disclosed. Ireview whether the statement on pages23 and 24 reflects the Commissionfor Architecture and the BuiltEnvironment’s compliance with HMTreasury’s guidance on the statementon internal control, and I reportif it does not. I am not requiredto consider whether the accountingofficer’s statements on internalcontrol cover all risks andcontrols, or form an opinion on theeffectiveness of theCommissionfor Architecture and the BuiltEnvironment’s corporate governanceprocedures or its risk andcontrol procedures.


24

I read the other informationcontained in the annual report andconsider whether it is consistentwith the audited financial statements.This other information comprisesonly the management commentary,and the unaudited part of theremuneration report. I considerthe implications for my reportif I become aware of any apparentmisstatements or materialinconsistencies with the financialstatements. My responsibilitiesdo not extend to anyother information.

Basis of audit opinionI conducted my audit in accordancewith international standards on auditing(UK and Ireland) issued by theAuditing Practices Board. My auditincludes examination, on a testbasis, of evidence relevant to theamounts, disclosures and regularityof financial transactions includedin the financial statements andthe part of the remuneration reportto be audited. It also includesan assessment of the significantestimates and judgements madeby the Commission for Architectureand the Built Environment andaccounting officer in the preparationof the financial statements, and ofwhether the accounting policies aremost appropriate to the Commissionfor Architecture and the BuiltEnvironment’s circumstances,consistently applied andadequately disclosed.

I planned and performed my auditso as to obtain all the informationand explanations which I considerednecessary in order to provide mewith sufficient evidence to givereasonable assurance that thefinancial statements and the partof the remuneration report to beaudited are free from materialmisstatement, whether caused byfraud or error and that in all materialrespects the expenditure andincome have been applied to thepurposes intended by parliamentand the financial transactions conform

to the authorities which governthem. In forming my opinion I alsoevaluated the overall adequacyof the presentation of informationin the financial statements and thepart of the remuneration reportto be audited.

OpinionIn my opinion:■ the financial statements give a

true and fair view, in accordancewith the Clean Neighbourhoodsand Environment Act 2005 anddirections made thereunderby the secretary of state, withthe consent of HM Treasury,of the state of the Commissionfor Architecture and the BuiltEnvironment’s affairs as at31 March 2006 and of itssurplus for the three monthsthen ended;

■ the financial statements and thepart of the remuneration reportto be audited have been properlyprepared in accordance withthe Clean Neighbourhoods andEnvironment Act 2005 anddirections made thereunderby the secretary of state,with the consent of theTreasury; and

■ in all material respects theexpenditure and income havebeen applied to the purposesintended by parliament and thefinancial transactions conform tothe authorities which govern them.

I have no observations to makeon these financial statements.

John BournComptroller and Auditor GeneralNational Audit Office157-197 Buckingham Palace RoadLondonSW1W 9SP24 July 2006

25


Income and expenditure accountfor the three months ended 31 March 2006

Income

Grant-in-aid 2 3,284,149

Release of deferred grant-in-aid 11 114,658

Other operating income 3 344,603

Interest receivable 7, 517

Other income 278

Total income 3,751,205

Expenditure

Staff costs 4 1,282,379

Other operating costs 5 2,467, 700

Total expenditure 3,750,079

Operating surplus for the year 1,126

Reversal of notional cost of capital 318

Surplus for the year before taxation 1,444

Taxation 6 1,428

Surplus for the year after taxation 16

Accumulated surplus brought forward 36,180

Accumulated surplus carried forward 12 36,196

All activities are continuing. There were no recognised gains or losses other than the surplus for the year.The notes on pages 27 to 35 form part of these accounts.

Notes


2006£

26

27

Notes to the accounts forthe three months ended31 March 2006

Accounting policies

1.1 Basis of accountingThe accounts have been preparedin accordance with a directionissued by the secretary of statefor culture, media and sport withthe approval of the Treasury, inaccordance with Section 87(9)of the Clean Neighbourhoods andEnvironment Act 2005.

The accounts have been preparedunder the historical cost convention,and take account of the financialreporting manual 2005 and generallyaccepted accounting practice sofar as considered appropriate oris modified by Treasury guidance.

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. Tangiblefixed assets are included at currentreplacement cost less an allowancefor depreciation. The valuation isrevised annually by use of appropriateindices where such adjustmentis material to the accounts.

Computer software is treatedas an intangible item and expensedin the year of purchase.

Surpluses or deficits on revaluationare taken to the revaluation reserve,except for any impairment which ischarged to the income and expenditureaccount when recognised.

31 March2006

£


2006£

Balance sheet as at 31 March 2006

Fixed assets 7 1,396,232

Current assets

Debtors 8 417,659

Cash at bank and in hand 2,025,738

Creditors 2,443,397

Amounts falling due within one year 9 (2,407,201)

Net current assets 36,196

Total assets less current liabilities 1,432,428

Deferred capital grant

Reserves

Accumulated funds 12 36,196

Deferred government grant 11 1,396,232

Total reserves 1,432,428

The notes on pages 27 to 35 form part of these accounts.

Dr ichard Simmons John SorrellAccounting officer Chairman20 July 2006 20 July 2006

Cash flow statement for the threemonths ended 31 March 2006

Net cash (outflow)/inflow fromoperating activities 13 23,646

Returns on investment and servicing of finance

Interest received 7,517

Payments to acquire tangible fixed assets (31,320)

Financing

Grant used for capital expenditure 31,320

Increase/(decrease) in cash 14 31,163

The notes on pages 27 to 35 form part of these accounts.

Notes

Notes

28

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

■ Fixtures and fittings – three years

■ Leasehold improvements – fiveyears (or the length of thebuilding lease if less)

■ Office and IT equipment –three years

Fixed assets are depreciatedin the year of acquisition, butnot in the year of disposal.

1.4 rant-in-aidGrant-in-aid provided for revenueexpenditure purposes is creditedto the income and expenditureaccount on receipt. Grant-in-aidapplied to the purchase of tangiblefixed assets is credited to thedeferred capital grant accountand released to the income andexpenditure account over theestimated operational lives of therelated assets.

1.5 Operating incomeOperating income is shown grossof VAT as the commission is notregistered for VAT.

1.6 PensionsPast and present employees arecovered by the provisions of thecivil service pension scheme whichis described in the remunerationreport. The defined benefit elementof the scheme is unfunded andis non-contributory except inrespect of dependents’ benefits.The commission recognises theexpected cost of these elementson a systematic and rational basisover the period during which itbenefits from employees’ servicesby payment to the principal civil

service pension scheme (PCSPS)of amounts calculated on an accruingbasis. Liability for payment offuture benefits is a charge on thePCSPS. In respect of the definedcontribution elements of the scheme,the commission recognises thecontributions payable for the year.

1.7 Foreign currencyTransactions denominated in foreigncurrency are translated at the rateof exchange ruling on the date ofthe transaction unless covered by aforward contract. Assets and liabilitiesdenominated in foreign currency aretranslated at the rate of exchangeruling at the balance sheet date.

Transaction and translation gains andlosses are credited or charged tothe income and expenditure account.

1.8 Capital chargeIn line with HM Treasury requirements,a capital charge reflecting the costof capital employed is calculated at3.5 per cent of average net assetsemployed during the year and includedin operating costs. In accordancewith Treasury guidance the notionalcharge is credited back to theincome and expenditure accountbefore taking the result for the yearto the general reserve.

1.9 rants paidGrants paid are accounted foron an accruals basis.

1.10 Operating leasesPayments made under operatingleases are charged to the incomeand expenditure accounton a straight-line basis over theterm of the lease. CABE hasno finance leases.


29

2 rant-in-aid

Grant-in-aid received 3,146,469

Transferred to deferred capitalgrant account 11 (31,320)

Deferred grants 169,000

Total 3,284,149

Grant-in-aid for the three months ended 31 March 2006 of £1,928,705 was made available by theDepartment for Culture, Media and Sport (DCMS) and £1,441,703 was made available by the Departmentfor Communities and Local Government (DCLG). This included £223,939 for the CABE Education Foundation(see Note 15)

3 Other operating income

NHS Estates 80,051

Arts Council of England 54,669

Housing Corporation 20,000

Department for Education and Skills 148,832

English Heritage 29,637

Home Office 3,075

English Partnerships 2,235

Other income 6,104

Total 344,603

Notes


2006£


2006£

4 Staff costs

Salaries and wages 999,486

Temporary staff costs 26, 789

Social security costs 96,649

Superannuation 159,455

Total 1,282,379

Staff numbers

Corporate 18

Learning and development 18

Policy and communications 23

Enabling 19

Design review 9

Space 14

Total 101

SuperannuationAs the PCSPS is an unfundedmulti-employer defined benefitscheme, CABE is unable to identifyits share of the underlying assetsand liabilities. A full actuarial valuationwas carried out as at 31 March2003. Details can be found in theresource accounts of the CabinetOffice: civil superannuation(www.civilservice-pensions.gov.uk).

For the three months to 31 March2006, employers’ contributionsof £159,455 were payable to thePCSPS at rates in the range of16.2 to 24.6 per cent of pensionablepay, based on salary bands. Employercontributions are to be reviewedevery four years following a fullscheme valuation by the governmentactuary. The contribution rates reflectbenefits as they are accrued, notwhen the costs are actually incurred,and reflect past experienceof the scheme.

Staff numbersThe commission counts the numberof staff in post to include all permanent,fixed term and temporary staff of alltypes who are paid as employeesthrough the payroll. On this basisthe average number of whole-timeequivalent persons (including seniormanagement) employed for the threemonths to March 2006 was 101.

30


2006£


2006No.


31

5 Other operating costs

Programme costs 1,513,100

Grants 345,363

Administration expenses 172,604

Rent, rates and maintenance 159,448

Depreciation 114,658

Professional fees 65,085

Travel, subsistence and allowances 89,124

Auditors’ remuneration 8,000

Non-audit fees 0

Notional cost of capital (Note 1.8) 318

Total 2,467,700

During the three months ended 31 March 2006 the commission made no payments under operating leases inrepect of land and buildings. CABE entered into a lease agreement on 3 June 2005 in respect of its officesat 1 Kemble Street. The lease allowed for the first year to be rent free.

6 Taxation

Corporation tax @ 19 1,428

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


2006£


2006£

32

7 Tangible fixed assets

As at 1 January 2006 15,923 1,406,585 320,144 398,340 2,140,992

Additions 17,184 14,136 31,320

Disposals – – – – –

As at 31 March 2006 15,923 1,423,769 320,144 412,476 2,172,312

Accumulated depreciation

As at 1 January 2006 13,499 90,060 213,348 344,515 661,422

Charge for the period 1,327 71,188 20,085 22,058 114,658

Disposals – – – – –

As at 31 March 2006 14,826 161,248 233,433 366,573 776,080

Net book value

As at 31 March 2006 1,097 1,262,521 86,711 45,903 1,396,232

As at 1 January 2006 2,424 1,316,525 106,796 53,825 1,479,570

Revaluations for the period are not included in the accounts due to immaterialty.

Officeequipment

£

Leaseholdimprovements

£

Fixturesand fittings

£

ITequipment

£Total

£

8 Debtors


Trade debtors 120,912

Inter-company account 223,939

Prepayments 72,808

Total 417,659

Debtors includes amounts owing to:

Local authorities 40,592

Central government bodies 120,674

Others 256,393

Total 417,659

31 March2006

£


33

9 Creditors


Taxation 8,776

Trade creditors 886,717

Other creditors 576,136

Accruals and deferred income 935,572

2,407,201

Creditors includes amounts owing to:

Local authorities 20,356

Central government bodies 1,058,456

Others 1,328,389

2,407,201

10 Operating leases

Annual commitments in respectof leases expiring:

Buildings 0 0 450

11 Deferred government grant reserve

Balance at 1 January 2006 1,479,570

Grant-in-aid received for the purchaseof tangible fixed assets 31,320

Release of deferred grant in respectofdepreciation of tangible fixed assets (114,658)

Balance at 31 March 2006 1,396,232

31 March2006

£

Withinone year

£’000

Between2-5 years

£’000

Over5 years£’000

31 March2006

£

34

12 Accumulated funds

Balance brought forward as at 1 January 2006 36,180

Surplus for the three months to 31 March 2006 16

Balance carried forward as at 31 March 2006 36,196

13 econciliation of the operating surplusto net cash flow from operating activities

Operating surplus 1,126

(Increase) in debtors (70,489)

Increase in creditors 101,636

Cost of capital charge 318

Interest received (7,517)

Depreciation 114,658

Taxation (1,428)

Release of deferred grant in respect of depreciation (114,658)

Net cash inflow from operating activities 23,646

14 Analysis of changes in cashduring the three months ended31 March 2006

Cash at bank and in hand 1,944,575 31,163 2,025,738

31 March2006

£

At1 January

2006£

Cash inflow£

At31 March

2006£

15 elated party transactions andconnected bodiesCABE is sponsored by the Departmentfor Culture, Media and Sport (DCMS)which is regarded as a relatedparty. The only material transactionswith the DCMS were in respectof grant-in-aid (note 2). In additionCABE receives further funding fromthe Office of the Deputy Prime Minister(ODPM) which has now been changedto the Department for Communitiesand Local Government (DCLG).The material transactions withthe DCLG were in respectof grant-in-aid (note 2).

The CABE Education Foundation,a separate registered charity,and a company limited by guarantee,is also regarded as a related party.There were various transactions withthe Education Foundation throughoutthe year. CABE provides managementservices to the Education Foundationand these are charged at cost.The trustees of the foundation areeither current or former CABEcommissioners. Those servingas trustees during the year were:-

Sophie Andreae – chair – formerCABE commissioner

Brian Boylan – currentCABE commissioner

Robin Nicholson – currentCABE commissioner

Dickon Robinson – currentCABE commissioner

Gillian Wolfe – formerCABE commissioner.

SecretaryBen Spencer (resigned 27 January2006) – CABE staff member.



2006£

35

The company was dissolved on 5 May2006. At the time of the dissolutionthe company had no assets.

Expenditure for the three months to31 March 2006 totalled £233,939.These costs were met directly byCABE and then re-charged toCABE Education Foundation. Inorder to enable CABE EducationFoundation to meet these costs,CABE made a matching donationof £233,939. No further expenditurewas incurred between the 31 March2006 and 5 May 2006.

A copy of the Education Foundationfinancial statements are availablefrom the commission’s offices.

There were also material transactionswith the following entities which aresponsored by the DCMS:

■ Arts Council England

■ English Heritage.

During the period CABE hadmaterial transactions with thefollowing government departmentsand central government bodies:

■ Department forConstitutional Affairs

■ Department for Educationand Skills

■ English Partnerships

■ Home Office

■ Housing Corporation.

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

■ Irena Bauman, a commissioner,is a director of Bauman LyonsArchitects, which received£1,277 as payment in respectof enabling services.

■ Louisa Hutton, a commissioner,is an external examiner for theUniversity of Westminster. whichreceived fee payments of £3,200

■ Paul Morrell, a commissioner, is adirector of Davis Langdon LLP,which received payment of £3,000.He is also the chairman of SchoolWorks Ltd, which received a grantof £20,000 from CABE.

■ Jason Prior, a commissioner, ismanaging director of EDAW plc,which received payment of£3,791 in respect of providingenabler services.

■ Les Sparks, a commissioner,is a commissioner for EnglishHeritage. He is also a visitingprofessor for the University of theWest of England, which receivedpayments of £2,250.

■ Sunand Prasad, a commissioner,is engaged in voluntary work forthe Construction Industry Council,which received grant funding of£24,342.

16 Post balance sheet eventsThere have been no events sincethe end of the year which would affectthe understanding of the accounts.

17 Financial instrumentsThe commission is required todisclose the role financial instrumentshad during the period, in creatingor changing the risks faced inundertaking its activities. Thecommission’s activities and the waygovernment bodies are financed,means that the commission is notexposed to the degree of financialrisk faced by business entities.The commission has no powersto borrow or invest surplus funds,and financial assets and liabilitiesgenerated by day-to-day operationalactivities are not held to changethe risks facing the commissionin undertaking its activities.

Liquidity risk: no significant exposuregiven the commission’s net resourcerequirement is financed throughgrant-in-aid.

Interest rate risk: no exposure asthe 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.

36

CABE is not required to prepare an account for the 12 months ended31 March 2006. The following account shows the income and expenditurefor this period for comparative purposes, and does not form part of theaudited financial statements.

Income

Grant-in-aid 10,727,689 11,111,223

Release of deferred grant-in-aid 384,914 322,507

Other operating income 613,148 395,285

Interest receivable 46,192 26,948

Other income 6,484 92

Total income 11,778,427 11,856,885

Expenditure

Staff costs 4,514,700 3,805,441

Other operating costs 7,252,419 8,042,774

Total expenditure 11,767,119 11,848,215

Operating surplus for the year 11,308 8,670

Reversal of notional cost of capital 1,272 1,104

Surplus for the year before taxation 12,580 9,774

Taxation 8,776 4,025

Surplus for the year after taxation 3,804 5,749

Accumulated surplus brought forward 32,392 26,643

Accumulated surplus carried forward 36,196 32,392


Income and expenditure accountfor the year ended 31 March 2006

2006£

2005£

CABE becomes a statutory body

The passage of the Clean Neighbourhoods and Environment Act in April

2005 put CABE on a statutory footing. The Act came into force on 1 January

2006, when CABE ceased to be a company limited by guarantee. CABE’s

statutory functions are the promotion of education and high standards

in, and understanding and appreciation of, architecture and the design,

management and maintenance of the built environment, including public

spaces. CABE may provide, or assist in the provision of, public works,

services and amenities. We can provide advice and develop and review

projects -whether or not we are requested to do so. This remit applies

across England, but CABE can work anywhere it thinks appropriate.

However Scotland and Wales, under their devolved governments, have their

own design advisors Architecture and Design Scotland and the Design

Comission for Wales, with whom CABE frequently works in partnership.

Printed in the UK for The Stationery Office Limited

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ISBN: 010294296 X

These annual accounts show how we’refunded and how we use these funds.They feature our 2005/06 financialstatements, policies and auditors’reports. They detail our assets, debtors,creditors and cash flow. In revealingthe ins and outs of our finances, theyalso prove our worth. Our costs are atiny fraction of the value of the schemeswe review. Our work to champion gooddesign saves the long-term costs ofbad design. Our influence, inspirationand expert advice add value.

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