Accountability report – GOV.UK

Directors’ report

This section sets out the membership of our key directing boards and committees and explains their responsibilities.

Our governance structure

HM Land Registry has a two layered system of governance:

• HM Land Registry Board (comprising non-executive board members and executive directors)
• HM Land Registry Executive Board (comprising executive directors)

This structure enables the non-Executive Board Members to provide appropriate challenge to the Executive Board while allowing them to make effective decisions on the day-to-day running of HM Land Registry.

HM Land Registry Board

The role and responsibilities of the HM Land Registry Board (LRB) are set out in the Framework agreed with the Department for Business, Energy and Industrial Strategy (BEIS). The LRB supports, constructively challenges and provides advice and guidance to the Chief Executive and Chief Land Registrar and their senior management team on performance, operation and development. The LRB supports senior management on setting the strategic vision of HM Land Registry, ensures the Secretary of State receives appropriate information, and assists the Chief Executive and Chief Land Registrar in their responsibility as Accounting Officer for the governance of HM Land Registry. This includes ensuring it operates within statutory and administrative requirements and within the limits of their authority and any delegated authority.

In line with Cabinet Office guidance, the LRB is tasked with advising on, challenging and supervising five main areas.

1. Strategic clarity.
2. Commercial sense.
3. Talented people.
4. Results focus.
5. Management information.

The LRB, supported by its Audit and Risk Committee, also ensures HM Land Registry is working within a framework of prudent and effective governance arrangements and controls that enable risk to be appropriately assessed and managed. As part of that function, the LRB agrees the key activities that HM Land Registry will need to undertake to meet its strategic objectives as set out in its published Business Strategy. The LRB supports the Chief Executive and Chief Land Registrar in ensuring the necessary financial and human resources are in place for HM Land Registry to meet these objectives. It agrees the organisation’s risk appetite, approves the annual budget and plan and regularly reviews performance in relation to agreed targets.

In May 2021 updated terms of reference for the LRB, Audit and Risk Committee and the Remuneration and Nominations Committee were agreed.

The LRB comprises a mix of executive directors and non-executive board members. The non-executive board members of LRB are highly skilled and have experience in the relevant fields to support and challenge the Executive Board. This year three non-executive board members’ terms came to an end in January 2021, and two new non-executive board members joined in June 2021.

The non-executive board members are independent of management. They are required to sign an annual statement recording any potential conflict of interests and declare any new interests in the interim. A central ‘Register of Interests’ record is retained. See note 17 to the accounts and note 6 to the Trust Statement for related party disclosures.

In January 2021, the LRB carried out a self-assessment of its effectiveness and the results were discussed at a Board meeting. The assessment showed the LRB to be broadly effective, but with opportunities for continuous improvement in strategic forward planning and receiving feedback from its committees and working groups.

LRB membership

Non-executive

Executive

See our Executive Board members.

A year in focus

During 2020/21 matters covered by the LRB included:

• response to COVID-19 and impact on staff, performance, risk and finances
• business planning, budget and performance framework, including the revision of priorities throughout the reporting year, strategic oversight of the Spending Review 2020 which resulted in HM Treasury agreement to proposals, 2021/22 business planning and development and agreement to a new performance framework
• business strategy discussions on the ambition of HM Land Registry and the way forward for a new strategy including agreeing a strategic framework to deliver the new strategy and moving to the publication of a live and evolving strategy that is refreshed annually
• operational and transformation progress, prioritisation and planning including ensuring there was a continued focus on productivity and that data was better integrated
• acceleration of the Local Land Charges Programme and associated business cases resulting in HM Treasury approval
• reassessment of HM Land Registry risk appetite resulting in a new risk appetite statement
• Civil Service People Survey results and development of the diversity and inclusion strategy
• HM Land Registry new non-ministerial governance arrangements with HM Treasury and BEIS as set out in the Framework which was reviewed and agreed by the LRB, as well as improvements to internal governance arrangements

Virtual Board meetings

The LRB met 15 times in 2020/21. In light of the COVID-19 pandemic and restrictions that required LRB to meet virtually, the meeting schedule was reorganised to meet more frequently which enabled LRB to keep pace with the changing environment. Longer board meetings were held every six weeks, with shorter meetings, focusing on performance and risk, held in between.

In November the LRB held an organisation-wide virtual question and answer (Q&A) event with staff. The event was one of the most widely attended virtual Q&A events of the year with around 1,700 staff joining.

Engaging with stakeholders

Engaging with stakeholders is a key part of ensuring LRB are well informed.

1. HM Land Registry is one of the six core Geospatial Commission partner bodies (the ‘Geo6’). Throughout the year, the Chair regularly engaged with the Geospatial Commission. The Chief Executive and Chief Land Registrar met regularly with their counterpart at the Geospatial Commission and with other Geo6 partner bodies as appropriate.

2. The Chair continued to engage regularly with the Geospatial Commission and Board members meet regularly with the six core Geospatial Commission partner bodies.

3. The Chair and Chief Executive and Chief Land Registrar regularly engage with the BEIS Minister and BEIS Permanent Secretary and met with the Chief Secretary to the Treasury.

4. Quarterly meetings took place between the Chair, Chief Executive and Chief Land Registrar and Chief Financial Officer and UK Government Investments (UKGI), with informal meetings in between, to discuss governance, financial performance and other relevant matters as set out in the Framework.

5. Members of the Board engaged with their counterparts at other government departments such as HM Treasury and the Ministry of Housing, Communities and Local Government as required.

6. Members of the Board regularly met market stakeholders who are members of the Land Registry Advisory Council and Industry Forum and drew upon their knowledge and expertise, tested ideas, shared information and discussed land and property-related issues.

7. Board members met virtually with their counterparts at the land registries of Scotland, Ireland, Northern Ireland and Isle of Man four times throughout the year at the ‘five registries meeting’, as well as others from around the world.

Committees of the HM Land Registry Board

Audit and Risk Committee

The Audit and Risk Committee supports the LRB and the Accounting Officer by reviewing and seeking assurance on the risk management framework, the control framework, governance, compliance with policies, procedures, external standards and statutory requirements. It reviews the Principal Risks of the organisation and provides oversight and challenge in the preparation of the annual report and accounts.

At every meeting, the Audit and Risk Committee sees the risk register, along with other performance related data as well as a more detailed risk management report of at least one Principal Risk.

During 2020/21 matters covered by the Audit and Risk Committee included:

• oversight and input into the development of the risk and assurance framework, maturity plans, risk taxonomy and the risk appetite statement
• monitoring and challenge of HM Land Registry’s Principal Risks, including provision of direction
• oversight of the risk-based programme of internal audit assurance activity and monitoring of the implementation of agreed management actions
• oversight of transition away from a trading fund to a non-ministerial department
• challenge to business continuity and cyber security-related activity
• oversight of and challenge to data and register quality
• oversight of and challenge to the Indemnity Fund Provision
• monitoring and challenging fraud controls and the counter-fraud strategy
• review of the whistleblowing process
• consideration and challenge of key financial judgements

Audit and Risk Committee membership

Remuneration and Nominations Committee

The Remuneration and Nominations Committee ensures that remuneration (and where appropriate nomination arrangements), including senior pay strategy, support HM Land Registry’s aims and oversees the recruitment, retention and performance of the executive team and other Senior Civil Service within the Civil Service pay policies.

During 2020/21 the main matters covered by the Remuneration and Nominations Committee included:

• performance of the Chief Executive and Chief Land Registrar
• Senior Civil Service performance and pay
• pay business case
• senior leadership structure, development and succession planning

Remuneration and Nominations Committee membership

Executive Board

The Executive Board (EXB) is chaired by the Chief Executive and Chief Land Registrar and its members are HM Land Registry’s executive directors. The EXB is responsible for leading and managing the delivery of HM Land Registry’s approved Business Strategy, annual business plan, agreed performance targets and for the day-to-day operational management of the organisation, including compliance with the HM Land Registry Framework. During 2020/21 EXB met twice a week.

Members of the EXB meet monthly as the Transformation Board, which includes an expanded membership from appropriate areas of the organisation. The Transformation Board oversees the delivery of operational and digital change within the organisation through oversight of delivery programmes and projects, their strategic alignment, benefits, risks and finance.

Through the mechanism of individual letters of delegation, members of the EXB handle the day-to-day running of HM Land Registry.

The EXB has continued to work with and develop the wider ‘Leadership Group’ by establishing weekly performance discussions and ‘lunch and learn’ sessions to pick up specific topics that need an informal deep dive. All EXB members and members of the wider Leadership Group have taken part in 360 feedback exercises to inform development.

Executive Board membership

Attendees

Other executive committees and panels

A number of committees report to EXB. These were reviewed and refreshed during 2020/21 as part of HM Land Registry’s change in status to a non-ministerial department. The new committees provide additional support for the Chief Executive and Chief Land Registrar as Accounting Officer, as well as bringing them in line with best practice, providing clearer accountability and to meet the needs of EXB better. They now comprise:

Investment, Commercial and Finance Committee: Advises EXB on the overall commercial and financial frameworks that are deployed by HM Land Registry, including scrutiny of and provision of advice on business cases, contract management and advice to the Accounting Officer on the Financial Delegation Framework.

People and Estates Committee: Develops recommendations for EXB on people and estates strategy-related matters and provides assurance on the effective application of people strategies and policies, including workforce planning, cumulative impact of change on people, engagement, culture and health and safety.

Performance and Performance Data Committee: Oversees the monitoring of performance and performance management information including making recommendations to EXB for future performance monitoring and key performance indicators and providing assurance that performance- related data is collected and managed appropriately.

Risk and Integrity Committee: Supports HM Land Registry’s objective of maintaining trust and confidence in the data that HM Land Registry holds in its registers and to understand, monitor and coordinate effort to control risks across the organisation, including reviewing risk data, considering emerging trends and risks, periodic reviews of strategies and audit reports, and has oversight of practice change proposals with a material risk impact.

Tactical Implementation Group: Plans and implements, as directed by EXB, events/activities that require cross-organisation coordination and cooperation beyond that which is readily achievable via normal management arrangements, in particular in the light of COVID-19, including fulfilling part of the command structure as part of Business Continuity arrangements.

The EXB sub-committees meet approximately monthly and report back to EXB after every meeting. Each sub-committee is chaired by an Executive Director and membership comprises senior leaders drawn from across the organisation. Sub-committees are supported by a number of groups on specific items such as diversity and inclusion, health and safety and counter-fraud.

The Transformation Board is supported by programme and project boards. Significant progress has been made across programme areas on digital and data, service improvement, customers, local land charges, IT infrastructure and people and team development.

Security incidents

Security is overseen by the Security and Resilience Panel. There were four physical security incidents during the year and none of those were for significant (Class 1) incidents. Class 1 incidents cover matters such as injury to a staff member or third party, major property damage, major theft or breach of system.

There were 39 minor cyber security incidents during the year and of those, none were significant (class 1) incidents.

Personal data-related incidents

There were three data-related incidents reported to the Information Commissioner’s Office (ICO) during this reporting period. The ICO determined that no further action was required by them in relation to the incidents reported.

Statement of Accounting Officer’s responsibilities

Resource Accounts

Under the Government Resources and Accounts Act 2000, HM Treasury has directed HM Land Registry to prepare, for each financial year, resource accounts detailing the resources acquired, held or disposed of during the year and the use of resources by the department during the year. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the department and of its income and expenditure, Statement of Financial Position and cash flows for the financial year.

In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:

• observe the Accounts Direction issued by HM Treasury, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis
• make judgments and estimates on a reasonable basis
• state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the accounts
• prepare the accounts on a going-concern basis
• confirm that the Annual Report and Accounts as a whole is fair, balanced and understandable and take personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced and understandable

HM Treasury has appointed the Chief Executive and Chief Land Registrar as Accounting Officer of HM Land Registry. The responsibilities of an Accounting Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records, and for safeguarding HM Land Registry’s assets, are set out in Managing Public Money published by HM Treasury.

As the Accounting Officer, I have taken all the steps that I ought to have to take to make myself aware of any relevant audit information and to establish that HM Land Registry’s auditors are aware of that information. So far as I am aware, there is no relevant audit information of which the auditors are unaware.

Governance statement

Scope of responsibility

As the Accounting Officer for HM Land Registry I have responsibility for maintaining corporate governance structures that support the achievement of HM Land Registry’s aims, objectives and targets, while safeguarding public funds and HM Land Registry’s assets.

I was appointed Chief Executive and Chief Land Registrar from 11 November 2019. I have received a ministerial letter of appointment pursuant to the Land Registration Act 2002 and a letter from the Permanent Secretary to HM Treasury, appointing me as Accounting Officer.

HM Land Registry became a non-ministerial department on 1 April 2020. My duties as Accounting Officer are set out in Managing Public Money guidance, which are to ensure public money is safeguarded, properly accounted for and used economically, efficiently and effectively.

The main statutory duties relating to maintaining the registers HM Land Registry holds are found in the Land Registration Act 2002, the Land Charges Act 1972 and the Local Land Charges Act 1975.

HM Land Registry’s status

In consequence of a reclassification of HM Land Registry by the Office for National Statistics into the central government subsector for national accounts’ statistical purposes, it was decided that HM Land Registry’s trading fund status should come to an end at the end of the 2019/20 financial year.

On 1 April 2020 HM Land Registry’s trading fund status was revoked in law and HM Land Registry joined other central government departments in having its annual expenditure control totals delegated directly by HM Treasury and receives its expenditure controls via the main supply estimate process. Further details on the estimate and HM Land Registry’s settlement for 2021/22 can be found on GOV.UK. Under this new status, HM Land Registry surrenders its income to Government through the consolidated fund and accounts for it in the Trust Statement.

Purpose of the governance framework

The governance framework is designed to give assurance that HM Land Registry carries out its duties in a manner that fulfils the appropriate standards of effective internal control and risk management. It is based on processes designed to identify and prioritise the opportunities and risks to the delivery of HM Land Registry’s strategy, its strategic objectives and performance targets. It aligns with our statutory duties and is designed to support the governance and strategic aims of HM Land Registry’s sponsor department, BEIS. The governance of HM Land Registry and its relationship with other government bodies is set out in a Framework which was agreed with Ministers in November 2020 and published on GOV.UK on 8 January 2021. Our approach to governance is in line with HM Treasury’s Corporate Governance in Central Government Departments: Code of Good Practice. HM Land Registry’s governance team attend BEIS Partners Governance Network meetings to share and learn from best practice.

Central controls

My role as Chief Land Registrar is referred to in the Land Registration Act 2002, the Land Charges Act 1972, the Agricultural Credits Act 1928 and the Local Land Charges Act 1975. The Chief Executive and Chief Land Registrar is responsible for keeping those registers established for the purposes of those Acts and has all the power, responsibilities and duties conferred and imposed on the Registrar by those Acts and by the rules and other secondary legislation made under them. In carrying out those specific statutory functions, the Chief Executive and Chief Land Registrar is not subject to any ministerial control or direction. Those functions are subject to supervision by the court.

In managing its business more generally, HM Land Registry operates within the delegation’s framework as defined by the Cabinet Office for arm’s length bodies, the specific delegations authorised by officials at BEIS and HM Treasury and the Framework. The Framework sets out the relationship HM Land Registry has with the Geospatial Commission. Separately, there is also a requirement to work with the Government Digital Service to ensure that product releases conform to standards in terms of security, effectiveness and consistency.

Business Strategy 2017/22

HM Land Registry has an ambitious Business Strategy for the period 2017/22. Its objectives are to realise the Government’s commitment for HM Land Registry to become the world’s leading land registry for speed, simplicity and an open approach to data.

During 2020/21 the LRB and EXB have worked on refreshing the Business Strategy as referenced in the Performance report.

Framework for risk management

HM Land Registry utilises the Three Lines of Defence model for assuring the effectiveness of risk management and to provide LRB with an appropriate level of assurance that HM Land Registry is managing risks within risk appetite.

In February the EXB proposed a new Risk Appetite statement which was reviewed by the Audit and Risk Committee and agreed by the LRB. The appetite statement was further developed for each category of our risk taxonomy.

HM Land Registry continually reviews its principal risks. The risk owners review them once every month and the EXB looks at them collectively once every quarter. While many of the risks remained the same in substance, such as fraud, error, business continuity, processing capacity and cyber security, the changed working arrangements and operating environment during the pandemic brought a keen focus on how controls needed to change to meet appetite.

The LRB and Audit Committee consider the Principal Risks formally on a quarterly basis. The Risk and Integrity Committee considers the Principal Risks on a monthly basis and carries out a deep dive on each Principal Risk on a cyclical basis, which is then followed by a review by the Audit Committee. The EXB and the Audit Committee also receive assurance from the Register Integrity Team regarding casework quality and the Counter-Fraud Group of fraud resilience.

All directors are required to submit a biannual statement of assurance covering their principal and key directorate risks and the efficiency and efficacy of the controls in mitigation of these.

The second line assurance function’s primary focus has been the integrity of the registers, and the quality of output from our casework teams. It also provides bespoke, ad hoc assurance engagements for projects and changes when required. There has been a transition towards delivering more thematic, risk-based assurance and advisory services.

The Chief Security Advisor (CSA), as approved by the Cabinet Office under the Transforming Government Security programme, is responsible for all business continuity and security arrangements, physical, personnel and cyber. The CSA provides assurance to the EXB and Audit and Risk Committee that business continuity and security risk management activities are undertaken to the standards set by government.

HM Land Registry has a robust whistleblowing policy in place and remains committed to the highest standards of public service. There were no new cases of whistleblowing during the reporting period.

Response to coronavirus

The coronavirus (COVID-19) national emergency impacted HM Land Registry and the property market generally. HM Land Registry invoked its Pandemic Response Plan in March 2020. This included establishing the crisis response structure to oversee preparations, based on clear prioritisation to minimise disruption to land registration services with immediate, medium and longer-term impacts on the property market and customers.

HM Land Registry followed government guidance and put in place arrangements to enable staff to remain connected and supported. HM Land Registry provided equipment to ensure staff had the means to work safely and productively from home where practical and ensured social distancing guidance was maintained in offices where work could not be carried out remotely. More details of this can be found in the Performance report.

HM Land Registry enhanced its internal and external customer communications including to increase reporting to BEIS Ministers and the LRB. As part of that, HM Land Registry set up an Industry Forum to enable HM Land Registry to work quickly to address customer and stakeholder needs.
HM Land Registry has continued to adapt and respond to the changing situation, including bringing forward and introducing new technical and procedural changes to assist customers; development of management information to provide assurance and support decisions at board level; and the introduction of a three-month rolling business plan to support revised business priorities.

HM Land Registry has continued to adapt and respond to the changing situation, including bringing forward and introducing new technical and procedural changes to assist customers; development of management information to provide assurance and support decisions at board level; and the introduction of a three-month rolling business plan to support revised business priorities.

EU Exit

HM Land Registry put a team in place to ensure readiness for EU Exit, including the management of associated risks.

HM Land Registry has complied with changes to procurement procedures and monitored risks to contracts in line with Cabinet Office guidance, including to manage potential impacts to supply chains, employees and data protection compliance. Regular updates were provided to LRB and BEIS on potential implications.

Performance reporting

In addition to the monthly financial reports from the Chief Financial Officer, I receive information on organisational performance, which is compiled from wider performance data received and reviewed by the Performance and Performance Data Sub-Committee before its submission monthly to the EXB. As laid out in the Performance section of this report, we have evolved our approach to performance this year, transitioning to an increasingly data-led and outcome-focused approach including measuring the organisational cultural maturity through the newly developed ‘Cultural Maturity Model’.

HM Land Registry has a dedicated analysis team falling under the umbrella of the Finance and Business Services Directorate, which quality assures the management information in use throughout the organisation. The EXB receives near real-time data on service delivery alongside business-critical management information on a weekly basis, with appropriate levels of management information (MI) provided to other key boards and teams.

HM Land Registry operates a number of models critical to its core business. A dedicated Modelling and Decision Support Oversight Group provides oversight and relevant challenge to our business-critical models, and we have implemented Aqua Book-compliant ownership structures and quality assurance (QA) documentation.

Financial performance is monitored and reported using monthly reports. There is a procedure for setting annual budgets and reviewing financial performance and full-year forecasts. Quarterly forecast reviews are in operation and give the EXB and LRB appropriate oversight and assurance.

I have held virtual ‘office’ and ‘national’ Q&A sessions throughout the year, as have other members of the EXB and deputy directors. The sessions provided vital opportunities to engage with staff on managing through COVID-19 as well as on other issues of concern to our staff at all levels of the organisation. I and other members of the EXB regularly write blogs covering important key messaging, which are published on a platform allowing comment and conversation.

I also met with a wide range of external stakeholders through regular meetings and formal stakeholder engagement groups to understand their concerns and operational context.

Procurement assurance

I am assured by the Chief Financial Officer, regarding specific procurements, that procurement activities are conducted in line with Cabinet Office (including Cabinet Office controls) and HM Treasury guidance and that senior managers have complied with these and HM Land Registry specific procurement guidelines. Throughout COVID-19, we have considered and applied where relevant the Cabinet Office guidance on supplier relief from contractual obligations and emergency procurement approaches. We have also adopted enhanced supplier financial stability monitoring for our most business-critical contracts.

We have enhanced our commercial governance in 2020 by introducing a new Investment, Commercial & Finance Committee (ICFC) which is a sub-committee of EXB with regular reporting, and now holds responsibility for approval of contracts over £1m as well as review and endorsement of all programme business cases. Work is underway to expand the remit of this group to be responsible for decisions on fees and charges, and to have oversight of contract management assurance.

Internal Audit and opinion

For the 12 months ended 31 March 2021, the Head of Internal Audit’s opinion for HM Land Registry is as follows: ‘HM Land Registry has an adequate and effective framework for risk management, governance and internal control to support the satisfactory achievement of its business objectives and enable key risks to be effectively managed. Whilst our work has identified that continuing enhancements are required to the risk and control framework to ensure that it remains adequate and effective as the business continues with its transformation, the overall rating remains unchanged from the prior year’.

Simon Hayes
Chief Executive and Chief Land Registrar
7 July 2021

Parliamentary accountability report

Remuneration report

Policy for senior civil servants

The remuneration of senior civil servants (SCS) is set by the Prime Minister following independent advice from the Senior Salaries Review Body.

In reaching its recommendations, the Review Body has regard to:

• the need to recruit, retain and motivate suitably able and qualified people to exercise their different responsibilities
• regional/local variations in labour markets and their effects on the recruitment and retention of staff
• Government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services
• the funds available to departments as set out in the Government’s departmental expenditure limits
• the Government’s inflation target

The Review Body takes account of the evidence it receives about wider economic considerations and the affordability of its recommendations.

The salary of the Chief Land Registrar and Chief Executive is set by BEIS. The HM Land Registry Remuneration and Nomination Committee, acting on the authority of the LRB, considers pay recommendations provided by line managers and decides the distribution of performance pay in the annual pay review for HM Land Registry senior civil servants, in accordance with Cabinet Office guidance.

Both base pay and non-consolidated performance related awards are dependent on performance, which is assessed through an annual appraisal system for senior civil servants, more details of which can be found at https://www.gov.uk/government/publications/senior-civil-service-performance-management.

During the year the members of the Remuneration Committee were Non-executive Board Members Diana Breeze (Chair) and Chris Morson until their appointments ended in January 2021, Non-executive Board Members Kirsty Cooper and Ed Westhead, Simon Hayes as Chief Executive and Chief Land Registrar, Mike Harlow as Deputy Chief Executive and Chief Land Registrar. This was also attended by Simon Morris, Director of Human Resources and Organisation & Employee Development, from his appointment on 8 June 2021 and Jon Cocking as Acting Director of Human Resources and Organisation & Employee Development until 8 June 2021 and as Deputy Director of Human Resources and Organisation & Employee Development for the remainder of the year.

Policy for other civil servants

Pay for HM Land Registry employees who are not in SCS grades is determined each year following negotiation and consultation between HM Land Registry and the unions and is subject to approval by the Secretary of State, taking into account guidance issued by HM Treasury.

Service contracts

The Constitutional Reform and Governance Act 2010 requires Civil Service appointments to be made on merit on the basis of fair and open competition.

The Recruitment Principles published by the Civil Service Commission specify the circumstances when appointments may be made otherwise.

Unless otherwise specified, all the directors covered by this report hold appointments that are open-ended and are subject to a notice period of three months. Early termination for the directors on open-ended service contracts, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme.

Find further information about the work of the Civil Service Commission.

Salary and performance pay – executive directors (1) 2020/21

1. Audited.
2. The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights.
3. John Abbott’s appointment ended on 11 May 2020.
4. Dr Andrew Trigg’s appointment as Acting Director of Digital, Data and Technology began on 1 May 2020. The disclosed amounts above relate to his appointment as Acting Director of Digital, Data and Technology.
5. Simon Morris’ appointment as Director of Human Resources and Organisation & Employee Development began on 8 June 2020.
6. Jon Cocking’s appointment as Acting Director of Human Resources and Organisation & Employee Development ended on 5 June 2020. The disclosed amounts above relate to his appointment as Acting Director of Human Resources and Organisation & Employee Development.

Salary and performance pay – executive directors (1) 2019/20

1. Audited.
2. The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increases exclude increases due to inflation or any increases or decreases due to a transfer of pension rights.
3. Simon Hayes’ appointment as Chief Executive and Chief Land Registrar commenced on 11 November 2019.
4. Mike Harlow’s temporary promotion to Acting Chief Executive and Chief Land Registrar ended on 10 November 2019. The salary total includes a period from 11 November 2019 to 31 March 2020 when he returned to his role as General Counsel and Deputy Chief Land Registrar.
5. John Abbott’s appointment ended on 11 May 2020.
6. Jon Cocking’s performance pay for 2019/20 comprised performance-related and Corporate Performance Award elements in his substantive capacity as Deputy Director. Jon’s temporary promotion to Acting Director of Human Resources and Organisation & Employee Development ended on 5 June 2020, and he subsequently returned to his role as Deputy Director.
7. Robin Malpas’ temporary promotion ended on 10 November 2019. The amounts disclosed above relate to his appointment as Acting General Counsel and Deputy Chief Land Registrar.
8. Mike Westcott-Rudd’s appointment ended on 31 March 2020.

Salary – non-executive directors (1)

1. Audited.
2. Ed Westhead represents the interest of UK Government Investments (UKGI) and does not receive any remuneration from HM Land Registry. Ed’s appointment started on 15 July 2019.
3. Diana Breeze’s appointment ended on 7 January 2021.
4. Chris Morson’s appointment ended on 7 January 2021.
5. Doug Gurr does not receive any remuneration from HM Land Registry. His appointment ended on 7 January 2021.
6. Elliot Jordan’s appointment commenced on 15 August 2019.

Salary

‘Salary’ includes gross salary, reserved rights to London weighting or London allowances, recruitment and retention allowances and any other allowance to the extent that it is subject to UK taxation. The Salary and performance pay tables are based on accrued payments made by Land Registry and thus recorded in these accounts.

Benefits in kind

The monetary value of benefits in kind covers any benefits provided by HM Land Registry and treated by HM Revenue and Customs as a taxable emolument.

Performance awards

Awards are based on performance levels attained and are made as part of the performance review process. The awards reported relate to the performance in the year in which they were paid to the individual. There were no performance payments made in 2020/21. The awards reported in 2019/20 relate to performance in 2018/19.

Pension benefits (1)

Civil Service pensions

Pension benefits are provided through the Civil Service pension arrangements. From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis with a normal pension age equal to the member’s State Pension Age (or 65 if higher). From that date all newly appointed civil servants and the majority of those already in service joined alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has four sections: 3 providing benefits on a final salary basis (classic, premium or classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis (nuvos) with a normal pension age of 65.

These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus, nuvos and alpha are increased annually in line with Pensions Increase legislation. Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 will switch into alpha sometime between 1 June 2015 and 1 February 2022. All members who switch to alpha have their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes.) Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a ‘money purchase’ stakeholder pension with an employer contribution (partnership pension account).

Employee contributions are salary-related and range between 4.6% and 8.05% for members of classic, premium, classic plus, nuvos and alpha. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum. classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. Benefits in alpha build up in a similar way to nuvos, except that the accrual rate in 2.32%. In all cases members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004.

The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 8% and 14.75% (depending on the age of the member) into a stakeholder pension product chosen by the employee from a panel of providers. The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer’s basic contribution). Employers also contribute a further 0.5% of pensionable salary to cover the cost of centrally-provided risk benefit cover (death in service and ill health retirement).

The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes, but note that part of that pension may be payable from different ages.)

For further details, see the Civil Service pension website.

Cash equivalent transfer values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value 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. A CETV 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 benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Staff report

Staff costs for 2020/21

Staff report as at 31 March 2021

Gender analysis at 31 March 2021

1. Some Senior Civil Service employees are also directors and are included in both categories.
2. Some apprentices are also permanent employees and are included in both categories.

Average full-time equivalent in year

Off-payroll disclosures

Off-payroll engagements as at 31 March 2021, for more than £245 per day and that last for longer than 6 months:

New off-payroll engagements, or those that reached six months in duration, between 1 April 2020 and 31 March 2021, for more than £245 per day and that last for longer than six months

Expenditure on consultancy

Resourcing

HM Land Registry’s People Strategy sets out how we will build our capacity by maintaining an annual strategic workforce plan and develop resourcing plans to deliver a programme of planned, regular and proactive recruitment.

This year we have moved to external recruitment by default and recruited to ensure that core operational and support services have the capacity to deliver statutory functions to agreed service standards. We have addressed front-line needs and future workforce sustainability by recruiting registration officers and executive registration officers in volume.
We have enhanced specific capability areas, particularly in digital transformation and agile development skills, through regular quarterly recruitment and engagement of delivery partners through the Government Frameworks. This has improved digital capacity, to deliver our aims for a digital Land Register and help towards redefining the future role of caseworkers. We have supported the Local Land Charges Programme by increasing capacity within the team.
We have reviewed existing and new entry routes and our apprenticeship schemes were expanded to provide the opportunity for people to gain a qualification in legal, human resources, information technology and finance.

As part of the annual workforce plan we actively encouraged increased representation across all diverse groups. We are governed by the Civil Service Commission Recruitment Principles which requires the selection of people for appointment to be on merit and on the basis of fair and open competition and maintained compliance. All our job opportunities are advertised supporting the Disability Confident Scheme which ensures disabled people will progress to the next stage of the selection process if their application meets the minimum criteria. It is our policy to ensure that any tests used do not discriminate against disabled candidates and adequate reasonable adjustments are made where required.

Recruitment

In support of our core service standards, and to supplement our substantive workforce, a number of registration officer appointments were made, allowing our more experienced colleagues to focus on more complex core registration activities.

Off-payroll contractors have also been used to meet short-term needs in more specialist areas, and information regarding compliance and disclosures is included in Off-payroll disclosures.

Health and wellbeing

Supporting our People Strategy – HM Land Registry’s Attendance, health and wellbeing delivery plan

HM Land Registry’s Attendance, Health & Wellbeing Framework aims to provide a holistic approach to health and wellbeing, setting clear expectations for all staff, and helping ensure that we continue to make HM Land Registry a great place to work.

Our framework focuses on the four key areas of:

• culture – we will create the right environment to support attendance, health and wellbeing;
• prevention – we will help ourselves and others to stay healthier and stay in work;
• intervention – we will ensure that the right support is provided at the right time;
• return to Work – we will support our people back to work in a timely way.

Our supporting attendance, health and wellbeing delivery plan aims to create a culture in HM Land Registry that recognises the importance of health and wellbeing, and to build an environment that supports our wellbeing and helps us to look after our own health. In respect of mental health, we have wanted to make a real difference in the way we view, talk and act on mental health – for HM Land Registry to be an organisation where mental health issues are widely understood and destigmatised; where our people feel confident to talk about their mental ill health; and where our managers are equipped to identify and understand the spectrum of mental health issues that they may encounter and support those affected.

This year we have delivered a variety of initiatives to support our colleagues and the organisation, including:

• cross-HM Land Registry promotion and participation in health campaigns, supported by our network of local health and wellbeing committees and mental health first aiders, and fronted by both our HM Land Registry colleagues using their own personal experiences and stories, as well as our Executive Board. Campaigns have included mental health awareness week, stress awareness day, financial awareness, and a ‘healthy me’ campaign. In addition health kiosks have been introduced across the estate to provide easily available access to health screening
• creation of toolkits of resources for mental health and neurodiverse conditions, designed for all colleagues to raise awareness and signposting to available support and guidance
• awarded a Silver Award in the MIND Workplace Wellbeing Index which is a benchmark of best policy and practice; and creation and implementation of an associated action plan based on the recommendations made. In line with the recommendations made, HR policies have been reviewed to ensure they are supportive of the organisation’s commitment to mental health
• Swansea Office’s proactive approach to health and wellbeing has been awarded a Gold Award from Public Health Wales. The Corporate Health Standard award is a mark of quality for health and wellbeing in the workplace and looks at the work the organisation does to create a positive inclusive working environment
• work has taken place to improve the disclosure process to encourage openness during HM Land Registry’s recruitment process and recruitment panels have been trained on neurodiversity;
• repromotion of our Employee Assistance Programme (EAP) range of services through face-to-face talks for all staff across the HM Land Registry estate
• delivery of a range of formal and informal training initiatives, collaborating with our Occupational Health and Employee Assistance Programme providers, providing line managers with guidance and advice to improve confidence and capability on sickness absence procedures and supporting staff dealing with physical and mental health issues

Capability

This year we have seen many developments around developing our staff. Some of these include the introduction of the Land Registration Academy and moving our learning and development approaches to be more digital.

More detail can be found in Simon Morris’ update in the Performance report.

Employee involvement

We continue to engage both informally and formally with our colleagues and their representatives.
Chief Executive and director blogs have continued to be issued during the year on a weekly basis and colleagues have been encouraged to respond to these with the aim of creating open and honest dialogue and exchange of views.

Managers are expected to have regular monthly discussions with individual team members to discuss employee performance openly, ideas for improvements to working practices, wider organisational issues, changes and any employee concerns. During the COVID-19 pandemic and the move to remote working, a heightened focus on employee wellbeing has resulted in more regular discussions and support.

We meet regularly with our trade unions. The Chief Executive and members of his team formally meet representatives at the Departmental Whitley Council meetings twice a year. There are structures in place for local Whitley meetings, and unions are consulted on specific issues.

Informal regular dialogue between the Chief Executive and trade union leads has continue during the year. Day-to-day operation of employment relations is managed through monthly Engagement and Consultation meetings between senior management and departmental trade union representatives, alongside fortnightly Transformation and Change meetings. We have also introduced an additional weekly meeting as a result of the introduction of remote working and the need to issue additional guidance and support, and to resolve issues and concerns promptly.

We continue to co-monitor the use of Facility Time with union colleagues, and are within the 0.1% paybill guide figure set by and reported to Cabinet Office; for greater detail see Trade union facility time.

The culture work was launched in May 2019 and was positively received. The COVID-19 pandemic response forced our culture to change rapidly and the response of the organisation has been incredible. The focus on the wellbeing of our people was at the forefront of all considerations and, as a result, we have again seen further positive improvements in our engagement scores in the Civil Service People Survey. Regular internal surveys held during the year have shown these improvements have been maintained and people are positively referencing the way HM Land Registry has responded. We are committed to maintaining and building on what we have learned from working and managing differently during the last 12 months as we move to a position of a more structured and planned approach to evolving our culture. We will do this through alignment with our newly introduced (maturity) model which breaks our original statement into seven more detailed ‘lenses’. The model has been developed and adapted throughout the last 12 months as we have learned through our experiences of unplanned remote working and the need to manage in a different way, focusing very much on employee wellbeing. Developing the model has involved a wide range of stakeholders, including managers and leaders, staff networks and union colleagues, with insight sessions held to test the concept and the detail.

The People and Estates Committee will now oversee progress against the model, having baselined HM Land Registry against it, followed by mapping planned and existing activity to it to form the revised corporate plan. Priority areas for measuring and assessing against it have been identified, and the principal risk revised with lens-specific controls. Similar activity is being replicated within each directorate.

Staff feedback continues to be a key component in planning and assessing progress towards our desired culture. In addition to survey feedback, continued constructive discussion with unions at both departmental and local level, in addition to encouraging staff involvement on other committees (including health and wellbeing, social and sports, diversity and charity), and directors’ visits with question and answer sessions, are all essential in ensuring our colleagues’ views are heard and understood.

Diversity

What is HM Land Registry doing to champion diversity and inclusion?

We aim to build a workforce which reflects the society we serve and to create an inclusive culture which values and respects diversity. We have continued to build on the foundations laid last year with a wide programme of activity.

Resourcing is a key area and we have sought to continue to attract, retain and develop diverse talent. Our recruitment practice is inclusive, ensuring adverts are checked for language and include positive statements. All are open to reasonable adjustments to support the recruitment process.

COVID-19 has brought a number of issues, with colleagues working from home throughout the year. We have ensured colleagues who required workplace adjustments have had these transferred to their home and have worked to support those where new issues have been identified. We have been vigilant in supporting mental health and regularly signposting the variety of sources available.
Our staff networks have played their part in supporting those they represent and their allies with regular contact, signposting advice sources through a range of means including email and webinar opportunities.

A working group supporting progression for our black, Asian and minority ethnic (BAME) colleagues has been established looking at the barriers these colleagues may face with progression. This aims to create opportunities to support a talent pipeline with role models through proactive support. A number of events have taken place including a workshop led by Professor Binna Kandola for all colleagues to prompt thought about racism and bias within the workplace.
We continue to monitor our progress towards closing the gender pay gap and know there is more to do to improve our position.

The year has provided an opportunity to research and develop our new Diversity and Inclusion Strategy for 2020-2024 which will be released in early April 2021. This is underpinned by our work with the analytics team bringing together various data sources to provide clear insight which we have used to set the direction, focusing on improving our evidence base and developing knowledge and skills to support inclusion.

Reporting of Civil Service and other compensation schemes – exit packages (1)

1. Audited.

There were 6 ex-gratia payments in 2020/21 (2019/20: 10).

Compensation for loss of office

Redundancy and other departure costs have been paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. Exit costs are accounted for in full in the year of contractual agreement to depart. Where applicable, the additional costs of buy-out of reduced pension benefit are met by HM Land Registry and not by the Civil Service pension scheme. Ill health retirement costs are met by the pension scheme and are not included in the table.

Pay multiples (1)

Reporting bodies are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the median remuneration of the organisation’s workforce.

Total remuneration includes salary, non-consolidated performance-related payments and benefits in kind. It does not include employer pension contributions and the cash equivalent transfer value of pensions.

1. Audited.

In 2020/21 no employees received remuneration in excess of the highest paid permanent director. Remuneration ranged from £135,000 – £140,000 to £15,000 to £20,000 (2019/20: £135,000 – £140,000 to £15,000 – £20,000).

Trade union facility time

Time period: 1 April 2020 to 31 March 2021 (12 months)

Table 1: Relevant union officials

Table 2: Percentage of time spent on facility time

Table 3: Percentage of pay bill spent on facility time

Table 4: Paid trade union activities

Statement of Outturn against Parliamentary Supply and related notes (audited) for the period ended 31 March 2021

In addition to the primary financial statements prepared under IFRS, the Government Financial Reporting Manual (FReM) requires HM Land Registry to prepare a Statement of Outturn against Parliamentary Supply (SoPS) and supporting notes. The SoPS and related notes are subject to audit, as detailed in the Certificate and Report of the Comptroller and Auditor General to the House of Commons.

The SoPS is a key accountability statement that shows, in detail, how an entity has spent against their Supply Estimate. Supply is the monetary provision (for resource and capital purposes) and cash (drawn primarily from the Consolidated Fund), that Parliament gives statutory authority for entities to utilise. The Estimate details supply and is voted on by Parliament at the start of the financial year.

Should an entity exceed the limits set by their Supply Estimate, called control limits, their accounts will receive a qualified opinion.

The format of the SoPS mirrors the Supply Estimates, published on GOV.UK, to enable comparability between what Parliament approves and the final outturn.

The SoPS contain a summary table, detailing performance against the control limits that Parliament have voted on, cash spent (budgets are compiled on an accruals basis and so outturn won’t exactly tie to cash spent) and administration.

The supporting notes detail the following: Outturn by Estimate line, providing a more detailed breakdown (note 1); a reconciliation of outturn to net operating expenditure in the SOCNE, to tie the SoPS to the financial statements (note 2); a reconciliation of outturn to net cash requirement (note 3); and , an analysis of income payable to the Consolidated Fund (note 4).

The SoPS and Estimate are compiled against the budgeting framework which is similar but different to IFRS. Further information on the Public Spending Framework and the reasons why budgeting rules are different to IFRS can also be found in Chapter 1 of the Consolidated Budgeting Guidance, available on GOV.UK.

The SoPS provide a detailed view of financial performance, in a form that is voted on and recognised by Parliament. The financial review, in the Performance Report, provides a summarised discussion of outturn against estimate and functions as an introduction to the SoPS disclosures.

Estimate outturn compared with voted estimate

Summary table 2020/21

Figures in the areas outlined in thick line cover the voted control limits voted by Parliament. Refer to the Supply Estimates guidance manual, available at GOV.UK, for detail on the control limits voted by Parliament.

Net cash requirement 2020/21

Notes to the Statement of Outturn against Parliamentary Supply as at 31 March 2021

SoPS 1. Outturn detail, by estimate line

SoPS 1.1 Analysis of net resource outturn by estimate line

SoPS 1.2 Analysis of capital outturn by estimate line

The total estimate columns include virements. Virements are the relation of provision in the Estimates that do not require parliamentary authority (because Parliament does not vote to that level of detail and delegates to HM Treasury). Further information on virements are provided in the Supply Estimates Manual, available on GOV.UK.

The outturn vs estimate column is based on the total including virements. The estimate total before virements have been made is included so that users can tie the estimate back to the Estimates laid before Parliament.

SoPS 2. Reconciliation of outturn to net operating expenditure

As noted in the introduction to the SoPS above, outturn and the Estimates are compiled against the budgeting framework, which is similar to, but different from, IFRS. Therefore this reconciliation bridges the resource outturn to net operating expenditure, linking the SoPS to the Financial Statements.

Capital grant-in-kind reflects the budget transfer in relation to the asset transfer to the Government Property Agency.

SoPS 3. Reconciliation of net resource outturn to net cash requirement

As noted in the introduction to the SoPS above, outturn and the Estimates are compiled against the budgeting framework, not on a cash basis. Therefore, this reconciliation bridges the resource and capital outturn to the net cash requirement.

SoPS 4. Amounts of income to the Consolidated Fund

SoPS4.1 Income payable to the Consolidated Fund

Amounts are payable to the Consolidated Fund.

SoPS4.2 Consolidated Fund income

Consolidated Fund income shown in note 4.1 does not include any amounts collected by the department where it was acting as agent for the Consolidated Fund rather than as principal. The amounts collected as agent for the Consolidated Fund (which are otherwise excluded from the main financial statements) are reported as part of the Trust Statement of this Annual Report and Accounts.

Parliamentary accountability disclosures

Losses and special payments (audited)

There are no losses or special payments to disclose as the total of all losses was below £300,000 and there have been no special payments.

Fees and charges (audited)

Fees and charges (1)

The following information on the main activities of HM Land Registry is produced for fees and charges purposes and does not constitute segmental reporting under IFRS 8 (see note 2).

1. Audited.
2. Registration of title – includes HM Land Registry’s statutory duties under the Land Registration Act 2002.
3. Land Charges and Agricultural Credits – register of short-term loans secured on farming stock and other agricultural assets.
4. Commercial income – includes commercial release of HM Land Registry data.
5. Local Land Charges – The Infrastructure Act 2015 passed to
   HM Land Registry the responsibility for maintaining a register of Local Land Charges (LLC). Approval was given for a phased delivery of LLC and the phase 1 service went live in July 2018.

Remote contingent liabilities

The judgements taken to place a value on the Indemnity Fund are an assessment for events at this point in time and do not include an assessment for events that are too uncertain or remote to include. Therefore there is no recognition of the potential change in value of the provision for uncertain events and an assessment is only made for changes in value of known events. Further details of the impact of changes in known events are shown in Indemnity Fund.

Simon Hayes
Chief Land Registrar and Chief Executive
7 July 2021

The Certificate and Report of the Comptroller and Auditor General to The House of Commons

Opinion on financial statements

I certify that I have audited the financial statements of the HM Land Registry Trust Statement for the year ended 31 March 2021 under the Exchequer and Audit

Departments Act 1921. The financial statements comprise the Statement of Revenue, Other Income and Expenditure, the Statement of Financial Position, the Statement of

Cash Flows and the related notes, including the significant accounting policies. These financial statements have been prepared under the accounting policies set out within them. The financial reporting framework that has been applied in their preparation is applicable law and International Accounting Standards as interpreted by HM Treasury’s Government Financial Reporting Manual.

In my opinion:

• the HM Land Registry Trust Statement gives a true and fair view of the state of affairs of HM Land Registry Trust Statement as at 31 March 2021 and of the net revenue for the consolidated fund for the year then ended

• the financial statements have been properly prepared in accordance with the Exchequer and Audit Departments Act 1921 and HM Treasury directions issued thereunder

Opinion on regularity

In my opinion, in all material respects the income and expenditure recorded in the financial statements have been applied to the purposes intended by Parliament and the financial transactions recorded in the financial statements conform to the authorities which govern them.

Basis for opinions

I conducted my audit in accordance with International Standards on Auditing (ISAs) (UK), applicable law and Practice Note 10 ‘Audit of Financial Statements of Public Sector Entities in the United Kingdom’. My responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of my certificate.

Those standards require me and my staff to comply with the Financial Reporting Council’s Revised Ethical Standard 2019. I have also elected to apply the ethical standards relevant to listed entities. I am independent of the HM Land Registry in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK. My staff and I have fulfilled our other ethical responsibilities in accordance with these requirements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that HM Land Registry’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on HM Land Registry’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the Accounting Officer with respect to going concern are described in the relevant sections of this certificate.

The going concern basis of accounting for HM Land Registry is adopted in consideration of the requirements set out in HM Treasury’s Government Reporting Manual, which require entities to adopt the going concern basis of accounting in the preparation of the financial statements where it anticipated that the services which they provide will continue into the future.

Other Information

The other information comprises information included in the Annual Report but does not the financial statements and my auditor’s certificate thereon. The Accounting Officer is responsible for the other information. My opinion on the financial statements does not cover the other information and except to the extent otherwise explicitly stated in my certificate. I do not express any form of assurance conclusion thereon. In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Opinion on other matters

In my opinion, based on the work undertaken in the course of the audit:

• the parts of the Accountability Report to be audited have been properly prepared in accordance with HM Treasury directions made under the Government Resources and Accounts Act 2000
• the information given in the Performance and Accountability Reports for the financial year for which the financial statements are prepared is consistent with the financial statements

Matters on which I report by exception

In the light of the knowledge and understanding of HM Land Registry and its environment obtained in the course of the audit, I have not identified material misstatements in the Performance and Accountability Report. I have nothing to report in respect of the following matters which I report to you if, in my opinion:

• adequate accounting records have not been kept or returns adequate for my audit have not been received from branches not visited by my staff
• the financial statements are not in agreement with the accounting records and returns
• I have not received all of the information and explanations I require for my audit
• the Governance Statement does not reflect compliance with HM Treasury’s guidance

Responsibilities of the Accounting Officer for the financial statements

As explained more fully in the Statement of Accounting Officer’s Responsibilities, the Accounting Officer is responsible for:

• the preparation of the financial statements in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view
• internal controls as the Accounting Officer determines is necessary to enable the preparation of financial statement to be free from material misstatement, whether due to fraud or error
• assessing HM Land Registry’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting

Auditor’s responsibilities for the audit of the financial statements

My responsibility is to audit and report on the financial statements in accordance with the Exchequer and Audit Departments Act 1921.

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a certificate that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of non-compliance with laws and regulations, including fraud.

My procedures included the following:

• Inquiring of management, HM Land Registry’s head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to HM Land Registry’s policies and procedures relating to:
  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud
  • the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations including Managing Public Money, HM Land Registry’s controls relating
    to the Land Registration Act 2002, the Land Registration Rules 2003, the Agricultural Credits Act 1928 and the Land Charges Act 1972
• discussing among the engagement team and involving relevant internal and or external specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in the following areas: revenue recognition and the posting of unusual
• obtaining an understanding of HM Land Registry’s framework of authority as well as other legal and regulatory frameworks that HM Land Registry operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of HM Land Registry. The key laws and regulations I
  considered in this context included the Exchequer and Audit Departments Act 1921, Managing Public Money, Supply and Appropriation (Main Estimates) Act 2020 and employment, tax and pensions legislation

In addition to the above, my procedures to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above
• enquiring of management, the Audit Committee and in-house legal counsel concerning actual and potential litigation and claims
• reading minutes of meetings of those charged with governance and the Board
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business

I also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and significant component audit teams and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of my responsibilities for the audit of the financial statements is located on the

Financial Reporting Council’s website. This description forms part of my certificate.

I am required to obtain evidence sufficient to give reasonable assurance that the [income and expenditure/ receipts and payments] reported in the financial statements have been applied to the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Report

I have no observations to make on these financial statements.

Gareth Davies
7 July 2021
Comptroller and Auditor General National Audit Office
157-197 Buckingham Palace Road
Victoria
London
SW1W 9SP