Report
Annual report and accounts 2023 to 2024
The Gambling Commission's 2023 to 2024 Annual report and accounts. For the period 1 April 2023 to 31 March 2024.
5d. Consolidated fund income
The Gambling Commission held the following balances on behalf the Consolidated Fund as at 31 March 2024.
Consolidated fund income
| Description | Fines and penalties | Economic Crime Levy (ECL) | Total 2023 to 2024 £ thousands |
Total 2022 to 2023 £ thousands |
|---|---|---|---|---|
| Fines and penalties issued during the year | 7,156 | 0 | 7,156 | 20,921 |
| Other income | 0 | 1,940 | 1,940 | 0 |
| Less: | ||||
| Costs of collection | (47) | (178) | (225) | (253) |
| Uncollectable debts | (2,310) | 0 | (2,310) | (2,135) |
| Amount payable to the Consolidated Fund | 4,799 | 1,762 | 6,561 | 18,533 |
| Balance held at the start of the year | 11,599 | 0 | 11,599 | 22,324 |
| Payments into the Consolidated Fund | (16,398) | (1,604) | (18,002) | (31,393) |
| Balance held on trust at the end of the year | 0 | 158 | 158 | 9,464 |
Year ending 31 March 2023 numbers restated.
Fines and penalties income
As per the Financial Reporting Manual (FReM) (11.3.9), fines and penalties are recognised at the time that the fine or penalty is imposed and becomes receivable by the entity and should be disclosed as the total amount payable to the Consolidated Fund at the point the enforcement notice is raised and then derecognised if the penalty is appealed successfully.
As set out in Note 1(q), Statement of accounting policies, Treatment of penalty packages, income payable to the Consolidated Fund does not form part of the Statement of Comprehensive Net Expenditure (SoCNE). There was no amount payable for fines and penalties at the 31 March 2024 (2022 to 2023 £9.46 million).
Allowances for bad debts
Due to the impacts on trading during the coronavirus (COVID-19) pandemic, the Commission provided extended payment terms for some fines to be paid by operators. All fees must be paid on or before the date prescribed to prevent being in breach of the payment agreement. Failure to pay will result in interest charges. Interest accrues and shall be payable by Operators on any part of the financial penalty that is not paid at the rate of 2.5 percent per annum above Bank of England base rate until the date of payment. Historically, payment plans have not been required and fines and penalties were considered to be non-complex financial assets which were low risk of not being paid.
As per International Financial Reporting Standards (IFRS) 9 Financial Instruments, the Commission’s Impairment Policy is to provide for expected credit losses on trade receivables relating to the Consolidated Fund. This requires the use of lifetime expected credit loss provisions for all financial penalties issued. These provisions are based on an assessment of risk of default and expected timing of collection, and an allowance for loss is made for potentially impaired receivables during the year in which they are identified based on a periodic review of all outstanding amounts.
Significant areas of judgement
There is uncertainty in the estimate of the amount to be realised by the Commission from outstanding Consolidated Fund Receivables. This estimate is based on historic recovery data and data gathered from similar companies. In line with IFRS 9, Consolidated Fund debts have been grouped into similar types, in this case preferential or non-preferential claims against the insolvency. Analysis of historic trends of recovery of these types of debts has revealed that the best estimate of recovery is 0 percent for non-preferential, and 35 percent for preferential.
Expected credit losses are recorded within Consolidated Fund receivables in Note 11, Trade and other receivables. Before there is objective evidence that an asset is impaired, it is an estimate of future loss including where impairment events have yet to happen.
During 2023 to 2024 a review of Consolidated Fund aged receivables determined two doubtful debts which are being pursued via the courts, an Impairment allowance has been adjusted in year.
ECL recovery of costs of collection
The Commission collects the ECL on behalf of HM Treasury, as set out in Note 1(r), Treatment of Economic Crime Levy (ECL). The cost of administration can be recovered from the Levy, at 31 March 2024 the amounts were £178,000 (2022 to 2023 £253,000).
Last updated: 30 October 2024
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