CITB is value for money despite deficit

The Construction Industry Training Board marked up a notional deficit last year of œ13.8 million after exceptional items.

But board chairman Hugh Try claimed that contractors are still getting good value for money. He said that for every œ1 paid in levy, the industry gets a total return worth œ1.48.

The 1995 deficit remains notional because the board is changing its accounting policy to provide a more accurate picture of its financial position, according to the latest CITB annual report, published this week.

CITB financial controls have been the subject of sharp criticism from employers of late and there have been complaints that recent annual reports have made the accounts difficult to follow.

The board has changed its financial year end from 31 March to 31 December. Also, the annual report has reverted to a more straightforward statement of income and expenditure.

The board said the change means that it will have a more accurate calculation of levy income available for the relevant year as it will be based on 9-10 months of actual experience rather than an estimate. At the same time, the grants scheme year end will be switched from 31 March to 31 July for the year 1996-7. This brings it into line with the academic year.

The annual report shows that the board had net assets of œ21 million at the end of December, against œ75 million at 31 March, 1995. But the figures are not comparable because no levy income was recognised in the shorter, nine-month period covered by the 1995 report.

Had there been no change in the financial year, it is claimed that there would have been a surplus of œ6 million before exceptional items. Taking account of those items, there would have been a deficit of œ14 million.

The latest accounts show a provision of œ5.7 million for relocation of the board's head office. Following the decision to stay put, some of this will not be needed although there will still be costs for upgrading the existing offices.

Commenting on the report, CITB chairman Hugh Try said the board has seen a change of culture. He claimed it is becoming "an ever more cost-effective organisation."

The chairman added that, for every pound of levy, there is a direct return in grants of 95p, plus a further 53p of benefits in the shape of training centres, recruitment, development of standards, and training and careers advice.

The total number of employers registered with the board at the end of the year was 5,000, which represented a decrease of about 7%, compared with the figure at 31 March, 1995. The total number of staff last year averaged 970.