Northwest Development Agency
65
Future Development
Financial Statements 1999-2000 Foreword to the Financial Statements
The Agency will contiue with its programe of Land and Property
Regional Strategy.
year. Resources will be focused on the delivery of the strategies set out in the
Statutory Background Act 1998. It came into e:istence on 14
Regeneration. Round 6 SRB funds will be allocated during the forthcoming
Agencies
The Northwest Development Agency was established under the provisions of the Regional Development
December 1998, followig Parliamenta approval of the Regional Development
Agencies Act 1998 and the appointment of Board members.
Commission and the SRB Challenge Fund formerly admistered by
regional activities of English Partnerships and the Rural Development
and on the basis determined by the Secretary of State, with the consent of
requied to prepare a statement of account for each fiancial year in the form
Under secton 14 of the Regional Development Agencies Act 1998 the Agency is
Statement of the Agency's and Chief Executive's Responsibilities
Government Offce for the North West under the provisions of the Regional
Treasur. The accounts are prepared on an accruals basis and must give a true
The Agency became fully operational on 1 April 1999 when it took over the
Development Agencies Act 1998.
and fair view of the Agency's state of affairs at the year end and of its income
and expenditure, total recognsed gais and losses and cash flows for the fiancial year.
1he business of Inward Ltd was transferred into the Agency by a Business
Transfer Agreement on 1 April 1999.
In preparing the accounts the Agency is required to:
reasonable basis.
accounting policies on a consistent basis.
relevant accountig and disclosure requirements, and apply suitable
Observe the accounts directon issued by the Secretay of State, includig the
Results for the Year and Transfer to/from Reserves The results for the year ended 31 March 2000 is contaed in the attched
Financial Statements. There was a deficit for the year of £3,223k after taxation
which was met from reserves brought forward.
estimates on a
State whether applicable accountig stadards have been followed, and
Make judgements and
Review of Activities
disclose and explain any material departues in the fiancial statements.
önci-Apì't1999 iirèšpêCtófI.anô äid Property,
activity. The Agency also managed a contract with the Regional Supply Offce
the Regions has designated the Chief Executive as the Accountig Offcer of the
The Accountig Offcer for the Department of the Environment, Transport and
presUre that. the AgencyW:lr cont:ntieiloperation.
Prepare the accounts on the going concern basis, uness it is inappropriate to
During the year the Agency completed the preparation of the Regional Strategy.
the Agency
Programme activity contiued using the regimes inerited from the bodies trIDsferrìogirtö
and implemented new programmes fuded from the Skills Development Fund
Northwest Development Agency. His responsibilities as Accountig Offcer
Single Regeneration Budget, Rural Development Fund and Inward Investment
and Competitiveness Development Fund.
inerited at its inception. A full review of activities is contained with the
The Agency commenced with the re-organsation of its activities for those
These requirements are set out in the "Non-Departmental Public Bodies'
records; and advising and inormig the Board of financial considerations.
public finances, followig gudance issued by Government; the keeping of proper
include responsibility for the propriety and regularity and value for money of the
Annual Report.
Government Accounting.
Accountig Offcer's Memorandum" issued by the Treasury and published in
Financial
Statements
Responsibility: Social Inclusion, particularly Black and Ethc Minorities, and
Alan Mang, North West Regional Secretary for theTUC. Area of
66
Board Members
Financial Statements
The Board members appointed by the Secretary of State on i 4 December 1998
Crime and Disorder.
Responsibility: Innovation, Technology and the
Responsibility: Regeneration including Health, Environment, Derelict Lad
Kath Reade, Chair of the East Lancashire Health Authority. Area of
e-commerce element oflCT.
Aerospace Alliance. Area of
Denrs Mendoros, Managing Director of Euravia Engineering, Chair of the NW
include Local Authority, Trade Union, Communty and private sector
representatives. The Chairman was appointed for a period of thee years. Board members were also appointed for three years and their corporate responsibilities are detailed in
the Code of Best Practice for the Board of the NWDA which is a public the Agency's offces. and Housing.
document available from
The members are as follows: -
Voluntary Sector North West and Director of the
Responsibility: Liverpool City Centre and the private sector in Merseyside.
anydisc.ussions or vote on. anY. relat",d Tatter~.
in any transactions involving the relevant organsations and do not participate in
offces in Kings Court, Warrington. Members declare their interests to the Board
on request by contacting the Director of Corporate Services at the Agency's
The Agency maintains a Register of Board Members' Interests which is available
Chairman i day per week.
the Agency. The Chairman is contracted for 2 days per week and the Deputy
Board members are contracted to carry out 2 days work per month on behalf of
of
West Business Leadership Team and Chairman of the National Grid Group. Area
James Ross, Chairman of Littlewoods Organsation, Vice Chairman of the North
Responsibility: Voluntary, Mutual and Charitable Sectors.
Greater Manchester Centre for Voluntar Organsations. Area of
Judy Robinson, Chair of
Responsibility: SMEs, Business Support.
Councillor Dr Fred Ridley, Leader of Stockport MBe. Area of
Responsibility: Relations with Government
Lord Thomas of Macclesfield, Chairman, Former Managig Director of The Co-operative Bank. Area of
Ministers and the Regional Assembly and Ventue CapitaL.
Councillor Mike Doyle J.P Deputy Chairman of the Agency, Assistant Chief
Responsibility:
Executive of Business Skils (St Helens) Ltd and Board member of the St Helens Chamber of Commerce Traig and Enterprise. Area of
Infrastructure and Transport.
Responsibilty: Education, Skils and Learnig, ICT (e-Iearning).
Maggie Chadwick, Principal and Chief Executive, Furness College, Barrow. Area of
Director,Precise Communications,c:hair of the LowryCentre
Responsibility: Rural Issues including Agriculture, Tourism and MarketTowns.
John Dunng, Director ofWestmorland Limited Motorway Services. Area of
Responsibility: Culture, Media, Communications and the
an Borough Partnership and Chairman of the
Felicitl Goodey,
Wig
Trust. Area of
creati ve aspects of I CT.
Clive Jeanes, OBE, Chair of
Ed;'cation and ÙfeÍong Learnig Partn~~slùp f~;Wigan. Area Responsibility: Manufacturing/Business Excellence.
Councilor Richard Leese, Leader of Manchester City CounciL. Area of
Responsibility: East Manchester and relationships with Local Authorities.
The Agency has established an Audit Commttee of the Board to oversee the
67
Appointment of Chief Executive work of the Internal Audit functon.
minimising the release of greenhouse gases.
The Agency is committed to energy conservation, waste reducton and
Release of Greenhouse Gases
Statement on the Agency's Policy for Conserving energy, reducing waste & minimising the
endig 31 March 2002, in accordance with gudance to be issued by the Treasur.
requiement for a statement on internal control, to be prepared for the yea
Commttee and I am tag reasonable steps to comply with the Treaur's
As Accountig Offcer I am aware of the recommendations of the Turnbul
letter and other reports.
the Board and the comments made by the external auditors in their management
conducted though the work of the Internal Auditors, the Audit Commttee and
My review of the effectveness of the system of internal fiancial control is
On 14 December 1998 Michael Shields was appointed as Chief Executive for a
fied term of five years.
Employment of Disabled Persons The Agency gives full and fair consideration to all applications for employment from disabled persons havig regard to their particular aptitudes and abilities.
Prompt Payment Code The Agency fuly supports the CBI Prompt Payment Code and aims to pay al
undisputed invoices either with 30 days or the terms agreed with the supplier
(mium 95%). In 1999/00 the Agency achieved ths target, payig 95.4% of invoices on tie
and is committed to maintag ths high stadard of performance as it sees prompt payment as a factor in achievig regeneration.
Financial Memorandum
Sustaiability is a key cross cuttg theme with the Regional Strategy.
The Secretar of State issued the Agency with a Financial Memorandum on its formation settg out the fiancial framework under which the Agency should
The Agency is a fudig contributor to Sustainability North West, a multi-
of reguar
the
provider
ofitskey
use ófICT torediice sta travelllig bètween offces, home workig
Executive
I Accounting Offcer 19 July 200
Chairman 19 July 200
-1..., .; ¡'~ftJ.
Chief
the year 2000 change of date.
operational and financial systems. No system failures arose as a consequence of
The Agency. placed reliance .on .English Partnerships-a:sthe
Year 2000
etc are all being reviewed.
policy,
Agency's Corporate Headquarters buidig and Area Offces, procuement
contribute to the sustaability agenda. Issues such as the effciency of the
In 2000/01, the Agency will address in detal how its own operations can
relationship is being forged.
sectoral partnership, and is represented on its Board. A close workig
operate. The Agency has complied in all material respects with the terms of ths
memorandum during the course of 1999/00.
Statement on the System of Internal Financial Control As Accountig Offcer, I am aware of the need for effective internal fiancial control, and acknowledge my responsibility for the system for such control
and properly
operated by the Agency. The system can provide only reasonable and not absolute assuranee-thattheassetsare safeguarded;-transactons authorised
framework
recorded, and that material errors or iregularities are either prevented or would be detected with a tiely period.
The systern pf irite:rrial lÌriCIal.control is based ana
management inormation, fiancial reguations and admstrative procedures, HM Treasur, the Department for the Envirornent, Transport and the Regions
includig the segregation of duties and various levels of delegation specied by
and the Board of the Agency.
In particular it includes: . procedures for the Board to review and agree budgets
. reguar reviews by the Board of monthy financial reports
. clearly defined financial admistration procedures
The Agency has an Internal Audit service, the work of which operates to the
standards set out in the Government Internal Audit ManuaL. PricewaterhouseCoopers were appointed as the Agency's Internal Auditors, by the Audit Commttee, in October 1999. The work of the Internal Auditors is inormed by
an analysis of the risk to which the Agency is exposed.
Financial Statements
The Certificate of the Comptroller and Auditor General to the Houses of Parliament
68
Respective responsibilities of the Agency, applied and adequately disclosed.
accountig policies are appropriate to the Agency's circumstances, consistently
Executive in the preparation of the fiancial statements, and of whether the
I have audited the financial statements on pages 69 to 88 under the Regional Development Agencies Act i 998. These financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and the accounting policies set out on pages 73 and 74.
the Chief Executive and Auditor
material misstatement, whether caused by error, or by fraud or other
evidence to give reasonable assurance that the fiancial statements are free from
explanations which I considered necessary in order to provide me with sufcient
I planed and performed my audit so as to obtan all the inormation and
As described on page 65 the Agency and Chief Executive are responsible for the preparation of the fiancial statements and for ensuring the regularity of fiancial
transactons. The Agency and Chief Executive are also responsible for the
preparation of the other contents of the Anual Report. My responsibilities, as independent auditor, are established by statute and guded by the Auditig
I report my opinon as to whether the fiancial statements give a true and fair
opinion I have also evaluated the overall adequacy of the presentation of
transactons conform to the authorities which govern them. In forming my
been applied to the puroses intended by Parliament and the fiancial
irreguarity and that, in all material respect, the expenditue and income have
view and are properly prepared in accordance with the Regional Development
inormation in the fiancial statements.
Practces Board and the auditig profession's ethcal gudance.
Agencies Act 1998 and directons made thereunder, and whether in all material
In my opinion:
Opinion
respect the expenditue and income have been applied to the purposes intended
by Parliament and the fiancial transactons conform to the authorities which govern them. I also report if, in my opinon, the Foreword is not consistent
with the fiancial statements, if the Agency has not kept proper accountig
then
ended
and
the fiancial statements give a true and fair view of the state of affairs of the
periĂźd
Northwest Development Agency at 31 March 2000 and of the deficit, total tlie
records, or ifl have not received all the inormation and explanations I require
for
and income have 'been. a.pplied to the
Comptroller and Auditor General 21 July 2000
John Bourn
~L
the authorities which govern them.
purposes intended by Parliament and the fiancial transactions conform to
- in all matèrial respect the expenditue
Agencies Act 1998 and diectons made thereunder; and
have been properly prepared in accordance with the Regional Development
recogrsedgains aidlosses aid cash flows
for my audit. I read the other information contained in the Anual Report and consider
whether it is consistent with the audited fiancial statements. i consider the
implications for my certicate if I become aware of any apparent misstatements or material inconsistencies with thefimincial statements. I review whether the statement on page 67 reflects the Agency's compliance with Treasur's gudance 'Corporate Governance: statement on the system of
Treasur, or if the statement is misleadig or inconsistent with other
internal financial control'. I report if it does not meet the requiements specied by
inormation I am aware of from my audit of the fiancial statements.
Basis of opinion I conducted my audit in accordance with Auditig Standards issued by the
157-197 Buckigham Palace Road,
National Audit Offce evidence relevant to the amounts, disclosures and reguarity of fiancial
Victoria, London SWL W 9SP
Auditig Practces Board. An audit includes examation, on a test basis, of
transactons included in the fiancial statements. It also includes an assessment
of the signficat estimates and judgments made by the Agency and the Chief
i I
Group Income and Expenditure Account for the Year to 3 i March 2000
Income Grant-in-Aid
69
Notcs 2000
£000
247
144,772
Other government grants
Transfer from deferred government grant account
1,304
14
12
8,771
2,305
180,881
954
I 1,235
3,683
10,250
1,177
7,259 4
Clawback of grant and contributions
European funding
Proceeds fi-om disposal of development assets
Proceeds from disposal of Investment assets
Rents and maintenance charges Other income
Total Incoiiic
Book value of investment assets sold
Expenditure Book value of development assets sold
1999
£000
14/12/98 - 3l/03/99
431
6,317
284
148
431
8,876
3,499 6
Amounts written ofT development assets and bad debts and mm'cments in provision for bad amI doubtful debts Salaries and wages
176,895
432
_5
(1,207)
2000
£000
1999
(i ,651) 2,568
4,916
509
2,017
(3,223)
£000
(3,223)
(10,345) 7,122
(6,531)
(3,814)
529
Interest receivable_
8
13
(I)
881
72,522
73,724
7
Total Expcnditure
Grants paid for coalfield expenditure
Grants paid for revenue cxpcndihire
Grants paid for programme expenditure
Other administrative costs
r-'
3,986
Provision against investment in associated undcrt:\kings
Operating surplus
Notional cost of capital
9
(7,122)
(Deficit) for the period on ordinary activities
làxation (Deficit) for the period after tax
Reversal of notional cost of capital (Deficit) for the period carried forward
Statement of Total Recognised Gains and Losses for the Year Ended 3 i March 2000 Deficit for period carried forward
Revaluation on investment assets
Revaluation on development assets Revaluation on coalfield assets Grant in Aid receivable not released to the Income and Expenditure Account
u)tal Gains and Losses
Finaiicial Statements
Group Balance Sheet as at 3 i March 2000
i7r) U
11
91,768
1,892
ÂŁ000
2000
24
ÂŁ000
1999
Notes
"Iangihlc operating assets 12
Fixed Assets liwcstment assets
10,250
24,746 180
24
13
14
93,660
lnycstment in associatecl undertakings
15
Current Assets Stock of development assets
181
i ,900
36,896
(181)
Income and Expenditure Rescn'c
19
18
76
97,572
7,442
6,303
24
24
24
1,892
5,474
(8,047) 28,849 17
122,509
10
16
Debtors Cash at bank and in hand
Creditors: Amounts falling due within one )'ear Net Current Assets
Provisions for Liabilities and Chargcs
Total Assets Less Current Liabilitics
Accruals and Deferred Incoiiic: Deferred Government Grant
Revaluation Reserve
20
Reserves
Grant-iii-Aid Reserve
2I
122,509
3,750
1 I 1,393
Other Reserves
22
Chairman
Chief Exccutive / Accounting Offcer
Loan Stock
Approved by the Board on 14 July 2000
-1~~ .; N"UkAfA
--~
The notes on pages (73J to (88) form part of these accounts
.1
.;
I i i I i
Balance Sheet as at 31 March 2000
71
11
91,768
1,892
£000
2000
24
£000
1999
Notes
12
Fixed Assets Investment assets
Tangible operating assets
Iil\cstment in subsidiary undertakings
13,246 180
24
5,825
i 1,763
99,485
13
15
14
Current Assets Stock of development assets
181
1,865
26,874
(181 )
7,442
2,665
120,946
24
24
24
(5,413)
1,892
5,474
16
Debtors Cash at bank and in hand
Creditors: Amounts falling due within one year
17
21,461
10
19
18
76
103,397
120,946
Total Assets Less Current Liabilities Provisions for Liabilities and Charges
Net Current Assets
Accruals and Deferred Incoine: Deferred Government Grant
Income and Expenditure Reserve
20
Reserves Revaluation Reserve
21
Executive / Accounting Offcer
i 13,580
Grant-in-Aid Reserve
Chief
ChaIriiian
Other Resen'cs
Approved by the Board on 14 July 2000
-i",,, í fro.kf"
--~
The notes on pages (73) to 188) ¡()nii part of these accounts
!
-!
i.
t
Financial Statements
Group Cashflow Statement for the Year Ended 31 March 2000 Reconciliation of operating surplus to net cash inflow from operating activities
Operating Activities Surplus on operating activities
72
Notes 2000
ÂŁ000
247
3,986
1999
ÂŁ000
14/12198 - 31/03/99
(1)
(1,431) 181
(156)
Depreciation charges
(Increasc)/Decrease in stock
1,805
(4,800) (247)
(24)
(2,630)
(3,070)
(24)
(24)
(3,070)
(9)
529
1,899
168
1,731
(7,266) 11,547
Interest Received
Returns on Investments and Servicing of Finance
Cashflow Statement Net Cash Inflow from Operating Acti"ities
Net Cash Inflow From Operating Acti"ities
Profit on sale of development and investment assets
Depreciation released from deferred gon'l"lllTcnt grant account
Increase in creditors and provisions
(InCl-cas") in debtors
23
Taxation Capital Expenditure & Financial hwestment Purchase of Fixed Operating, Development and Investment Assets Proceeds on Disposal of Fixed Operating, Development & Investment Assets
Acquisition Cash Transfer received from other organisations
Increase in Cash
Notes to the Financial Statements
in the Statement of Asset Valuation Practice and Guidance Notes
Valuations are carried out in accordance with best practice as contained
73
1 Accounting Policies
for the Year Ended 31 March 2000 (1) Basis of Accounting
(3rd Edition) published by the Royal Institution of Chartered Surveyors.
A valuation of the whole portfolio was carried out as at 31 March 2000,
The financial statements of the Northwest Development Agency have been
prepared in a form directed by the Secretary of State for the Environment,
which was undertaken by King Sturge, International Property Consultants.
included in the fìnancial statements at thcir open market value.
in accordance with applicable accounting standards as properties are
the Board, necessary for the financial statements to give a true and fair view
Companies Act 1985 for all properties to be depreciated is, in the opinion of
investment properties. This departure from the requirement of the
In accordance with SSAP 19, no depreciation is provided in respect of
Transport and the Regions, with the approval of H M Treasury, in
accordance with the Regional Development Agencies Act 1998. The financial statements have been prepared as set out in Treasury guidance
under the modified historical cost basis as explained in the sub-paragraphs below and in accordance with applicable Accounting Standards and, without
limiting the information given, meet the accounting and diselosure
requirements of the Companies Act 1985. Compliance with SSAP 19
Depreciation is only one of the many factors reflected in the annual valuation
"Accounting for Investment Properties" requires departure from the
requirements of the Companies Act 1985 relating to depreciation and an
of the properties and the amount attributed to this factor by the valuers
(5) Development Assets
Tangible Assets
Tangible Fixed Assets are valued at depreciated replacement cost.
(4) fixed Assets - Other
date of legal completion.
Acquisitions and disposals of land and buildings are accounted for on the
cannot reasonably be separately quantified.
explanation of the departure is given in note I (3) below.
(2) Basis of Consolidation No separate income and expenditure account is presented for the Agency as provided by Section 230 of the Companies Act 1985. The consolidated accounts incorporate the accounts of the Agency and its
subsidiary undertaking, Speke Garston Developments Limited.
(3) Fixed assets - Investment assets
The portfolio of industrial and commercial investment properties held at Development assets, consisting of land and buildings, are shown at the lower
;;. ~;,c.~.... .:~._. :.="; ~~..~ ~~_________________._
anyone time is treatedin such a waytha! sli''Plus~sand(lefìcits on . ___ __ . __ ._. ..__ ofcurrentrçplaceinentçostandne.trealisahlçc value, any reductions in_
date of legal completion.
Acquisitions and disposals of development assets are accounted for on the
revaluation of industrial and commercial properties are netted off. Any holding value being written off to the income and expenditure account. overall write-down of these properties to open market value, and subsequent adjustments thereto, arc accounted for annually and separately
identified in the income and expenditure account. Any overall surplus on
revaluation of these properties to open market value, and subsequent
realised defìcit, as originally charged, by
adjustments thereto, are credited to a revaluation reserve after eliminating the overall accumulated un
revaluation adjustment, to the income and expenditure account.
~
I\Jotes to the
Financial Statements
Notes to the Financial Statements
(8) Pension Costs
74
Certain of the employees of Northwest Development Agency participate in
Pension Scheme (the PCSPS) and individual defined contribution pension
the English Partnerships Pension Scheme (EPPS), the Principal Civil Service
plans. The EPPS and PCSPS are defined benefits schemes. The PCSPS is a
non-contributory scheme. The Agency's contributions to the schemes arc charged to the Income and Expenditure Account so as to spread the cost of pensions over the employees' working lives within the Northwest Development Agency. The Board members are not members of these or any
'-
other pension scheme of the Agency, with the exception of the Chairman who is a member of the PCSPS.
Government Grant Account and released to the Income and Expenditure
expenditure on assets that arc depreciated arc credited to the Deferred
the year to which they relate. Government grants in respect of capital
of a revenue nature are credited to the Income and Expenditure Account in
Regions for specified types of expenditure. Government grants reccivable
in aid provided by the Department of the Environment, Transport and the
Northwest Development Agency's activities arc funded primarily by grant
(9) Government Grants
for the Year Ended 3 i March 2000 (Continued) 1 Accounting Policies (Continued) (6) Depreciation
lives on a straight line basis at the
50 years
Depreciation is provided to write off the replacement cost of tangible fixed
following annual rates:
assets over their anticipated useful
Owned property
5 years
Period of lease
Offce furniture, fittings and eguipment 3 years
Leasehold buildings with less than 25 years to run
Computer eguipment The assets transferred from predecessor organisations were transferred at Net Book Value. These assets have been transferred part of the way through their existing useful life. Fixtures, fittings and eguipment transferred ¡i-om the predecessor organisations have been deemed to have a remaining useful
life of 2 years at 1 st April 1999.
life of 3 years at J st April 1999 and computer eguipment has been deemed to have a remaining useful
(7) Investments and Loans li1\'Cstments -äiid JÔ;Ù1sare sl10wn ncC(jfpYo\'isioiT foramòuntscôilsidCled-
Government grants in respect of assets that arc retained and not depreciated
~ Accounfü\'e/the expëded liSèlullife col' tncrclevani Tangible F.ixed Assets.
Deferred taxation is provided using the liability method on all timing
(ID) DeferredTaxation
during the year 2000/2001 to nnance payment.
amounts attributable to expense accruals for which grant will be received
Grant in aid released to the Income and Expenditure account includes
arc credited to the Grant-in-Aid Reserve.
doubtful and of write-off:~ for amounts considered irrecoverable. Provision
has been made for all loans wbere recovery appears doubtfuL. No loan is
written off until the impossibility of recovery is beyond doubt. Approval from the DETR is obtained for any write-off in excess of£25,cÕÖO.
Partnership workspace schemes, the Agency's investment with partners, mainly local authorities, to provide rural workspace has been disclosed in the Balance Sheet at a valuation based on present value of estimated future rental
income. Expenditure on these projects is written off in the year of spend.
differences to the extent that they arc expected to reverse in the future,
calculated at the rate at which it is anticipated the timing differences will reverse.
I. i
Notes to the Financial Statements for the Year Ended 31 March 2000 (Continued) 2 Grant in Aid Released
7!5
Grant in aid is funded from the Department of the Emironment, Transport and the Regions, Class Il, Vote 1, with the Department of
1 funding expenditure on the Regional Supply Offce.
Grant-iii-Aid rcceIycd lì'om DETR Grant-in-Aid received fì'om DTI
Add loan interest deducted at source
Less: Grant received in the current year for expenditure accrued in the previous year
Add: Grant due for expenditure incurred in the current year but to be claimed next year VAT debtor incorrectly identified as Grant in Aid receivable in 1999
Total Grant-in-Aid receivable
Grant in Aid utilised in the year Vote A land and Property Vote B Single Regeneration Budget Vote C Rural Deyelopment Vote 0 Skills Deyelopment Vote E Competitive Development
Vote G, H Administration Expenditure Vote J Inward Investment Activity
Vote K Regional Supply Omce Grant in Aid utiliscd in respect of predecessor organisations
Total relevant expenditure
Receipts Capital receipts Revenue Receipts
'-~------.--Europ('an-Funding Other Income
Grant-in-Aid applied to Capital Expenditure
Total grant-in-aid receivable Grant-in-Aiel applieelto fixeel operating assets
Grant-iii-Aid applied to dcvelopment assets
...:____-'-'~__.:_'~___~Grant.,in-Aid applied to investment assel,;~..;.~~.. _.~.._.; ..-._. _________
Grant-in-Aid credited to Income and Expenditure Account
Trade and Industry, Class ix, Vote
327
£000
1999
2000 £000 30
141,337
327
480 141,847
128
431
(24)
(105) 1,379 143,121
16,624
i,183
129,113
269
4,780 13,079 555
1,740
1,888
167,343 169,231
(13,052) (82)--
(11,932) (1,044) 143,121
232
4,242
(6,125) 144,772
2000
£000
1999
694
(7)
(180)
881
996 (302) 694
£000
Rural Loan Interest generated from the Rural Loans portfolio was received throughout the year. The total amount of interest received was repaid to the Department of the Environment, Transport and the Regions by direct deduction from the final claim for Grant-in-aid.
Coalfields During the year, grant was received from English Partnerships for the Coalfìelds Programme as follows:
Grant received
Repayable to English Partnerships Grant released Expenditure on coalfielels
- Other
Capital Receipts - European Funding
Grant Released
l\Jotes to the
Financial Statements_~__
Notes to the Financial Statements for the Year Ended 3 i March 2000 (Continued) 3 Other Grants
Grant for coallìcld expenditure
Other
4 European Funding
76
694
2000 £000 6,565
7,259
180
2000 £000
997
European Regional Development Fund - received for coalfields
1,177
1999
£000
1999
£000
1999
1
1
529
£000
£000
2000 £000
39
Pension costs
11
42
3
26
2
~. 5 ~-
6,317
541
89
148
73
50
23
Salar)' 2000
Salar)' 1999 £ 12,833 3,321
33
£ 53,167 16,450
2,042 2,042 2,042 2,042 2,042 2,042 2,042 2,042 2,042 2,042 2,042
5,606
7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000 7,000
452
397
-532- ~-
4,677
12
1999
147
2000 £000
-~ -
529
~.- -~~
170
Board members Fees
6 (a) Board Members
6 Salaries and Wages
Bank deposit
5 Interest Receivable
- other
Date of Appointment 14 December 1998 14 December 1998 14 December 1998 14 December 1 998 14 December 1998 14 December i 998 14 December 1998 14 December 1998 14 December 1998 14 December 1998 14 December 1998 14 December 1998 14 December 1998
Social Security costs
Staff Salaries and wages ine. overtime Social Security costs
-----.~ Pension costs - -
Agency' Stall" Seconded staO' ~alar)' costs
Board Members
Total Salaries & Wages 6 (b) Emoluments of
The emoluments of Board memhers were: Name Lord Thomas of Macclesfield Mike Do)'le James Rass
Cli,'e Jeanes Felicit)' Goode)' Dennis Mendoros Richard Lcese
John Dunning Fred Rid)e)'
Kath Reade Maggie Chadwick Jud)' Robinson Abn Manning
All Board incm!iC's hayc heen appointed on a fìxcel term of three years.
j
Notes to the Financial Statements for the Year Ended 31 March 2000 (Continued)
77
Board members are contracted to carry out two days work per month on behalf of the Agency. The Chairman is contracted for 2 days per week but was contracted for
3 days per week from 01/11/99 - 31/ 3/00 and the Deputy Chairman is contracted for 1 day per week. No Board members are eligible for pension contributions,
-_..
89,616
'-
458
'-
29,575
89,616
'-
Total
2000
30,791
'-
Total
1999
834
'-
at 60
in pension
Real increase
1,120
'-
at 31/3/00
pension at 60
Total accrued
Salary for
57
29,117
11,801
49
55
49,359
31,474
35,000
4,018
1,787
1,252
1,063
52,873
51,146
32,726
36,063
611
617
393
1,858
617
393
Private Money Purchase
364
61 I
18,834
Defined Contribution Scheme
364
46
48,855
relevant period
50
68,016
Age
54
50
-~~--~,- -
79,817
Benefits
performance related payor any other taxable benefit as a result of employment with the Agency, with the exception of the Chairman who is a member of the Principal
Civil Service Pension Scheme.
_.._----
6 (c) Emoluments of Chief Executive and the most senior managers
Michael Shields
Chief Executive Appointed 14-12-98
Steve Ashcroft
Director of Corporate Services
Appointed 01 -09-99 John Burrows
Director of Business Development Appointed 01 -04-99 Baron Ishervvood
-~-_.~---.
Director of Regeneration Appointed 01 - I 0-99
~ir~_ct_C?~_~~~_~~rketing _
Peter Mearns
Appointed 16-08-99 Geoll Parker
Director of Finance
White
Appointed 19-07-99 Peter
Director of Policy
& Intelligence Appointed 01-08-99
l'-otes to tile
Firiaiicial Statemellts_____
Notes to the Financial Statements
pensions are brought into payment immediately without actuarial reduction and
Medical retirement is possible in the event of serious il-health. In this case
78
Pension benefits are provided through Ù1e Principal Civil Service Pension
wiù1 service enhanced as for widow(er) pensions.
for the Year Ended 31 March 2000 (Continued)
Scheme. This is a statutory scheme that provides benefits on a final salary basis at
Retail Price Index. On death, pensions are payable to the surviving spouse at a
period 14 December 1998 to 31 March 1999, approved after the year end and
The Chief Executive's salary includes a bonus payment of £2,491 relating to the
Benefits include cars, fuel and private medical insurance.
a normal retirement age of 60. Benefits accrue at the rate of 1 /80th of pensionable salary for each year of service. In addition a lump sum eguivalent to
3 years pension is payable on retirement. Members pay contributions of
rate of half the member's pension. On death in service, the scheme pays a lump accrued in these accounts.
i 1/2% of pensionable earnings. Pensions increase in payment in line with the
sum benefit of twice pensionable pay and also provides a service enhancement on computing Ù1e spouse's pension. The enhancement depends on length of
service and cannot exceed 10 years.
Salaries and Wages 6 (d) Staffng Numbers
6
The average number of staff employed by the Agency during Ùie year (including all agency and seconded stall) was 2 i 8. Chief Executive's Of1ce 6
81
43
Corporate Services Business Development Regenera_t~on
22
37
13
----- _._.._._---
Finance
Marketing
Policy & Intelligence
10
21S
Overseas
Total
Notes to the Financial Statements The pension cost charged to the Income and Expenditure Account is calculated
79
6 (e) Pension Arrangements
by the actuary so as to spread the cost of pensions over the employees' working
for the Year Ended 31 March 2000 (Continued)
The Agency has a number of pension schemes in operation. The principal
lives with English Partnerships. The pension costs are based on the most recent
the rate of return on the investments of the Scheme and the amount by which
significant asswnptions for their effect on the pension costs are those relating to
1999. The actuarial method used was the Projected Unit Method. The most
actuarial valuation which was completed with an effective date of 31 March
schemes are of the contributory defined benefit type.
Principal Civil Service Pension Scheme (PCSPS) Pension benefits are provided through the Principal Civil Service Pension
Scheme. This is a statutory scheme that provides benefits on a final salary basis at
3 years pension is payable on retirement. Members pay contributions of 11 /2%
pensionable salary for each year of service. In addition a lump sum equivalcnt to
3 per cent per annwn and the rate of growth of equity dividends by 5 per cent
rate of salary increase by 1.5 per cent per annum, the rate of pension increase by
used was 6 per cent per annum. It has been assumed that this wil exceed the
increase adopted in valuing the Scheme's investments. The investment return
this exceeds increases in salaries and pensions and the rate of equity dividend
of pensionable earnings. Pensions increase in payment in line with the Retail
per ammm.
a normal retirement age of 60. Benefits accrue at the rate of 1 /80th of
Price Index. On death, pensions are payable to the surviving spouse at a rate of
and advised.byTheTreasury.The rate for
.-Secretary, at St George's House;-Kingsway,Team Valley;Gateshead; NE1 IONA:
The accounts of the English Parti;erships Pension Scheme are available from the
charged to the Income and Expenditure Account.
actuarial method and assumptions that were used to calculate the pension cost
represented 125 per cent of the liability for benefits, calculated using the same
Scheme's assets was £70,052,137 and the actuarial value of the assets
The actuarial valuation at 31 March 1999 showed that the market value of the
half the member's pension. On death in service, the scheme pays a lump sum benefit of twice pensionable pay and also provides a service enhancement on
computing the spouse's pension. The enhancement depends on length of service
and cannot exceed 10 years. Medical retirement is possible in the event of serious il-health. In this case pensions are brought into payment immediately without actuarial reduction and with service enhanced as for ",~dow( er) pensions.
The PCSPS is a non-contributory scheme. For 1999-2000 contributions of
Actuary
£230,676 were paid to the Paymaster General at rates determined from time to timebYcthe Government
The Greater Manchester Superannuation Fund
All employees are issued with a summary of the accounts.
English Partnerships Pension Fund
Contributions of £5,322 were paid to the Greater Manchester Superannuation
pensionable salary.
Former employees of English Partnerships participate in the English Partnerships
Fund. The rate for 199912000 as determined by the fund's actuary was 7.5% of
1999-2000 is in the range of 12 to 18.5 per cent of
Pension Scheme, which provides benefits based on final pensionable salary.
pensionable salary. The latest actual assessment of this scheme was in 1998.
pensionable salary. Contributions of £ 18,286 were
defined contribution type held in independently administered funds. The rate
The three minority schemes covering up to 17% of the Agency's staff are of the
Other Schemes
Contributions of £272,022 were paid to English Partnerships pension fund at
rates determined by the pension funds actuary. The rate for 1999/00 was 15%. The Scheme is set up under trust and the assets of the Scheme are, therefore, held separately from those of English Partnerships.
for 199912000 was 9% of
paid to Inward Group Money Purchase Plan, Scottish Mutual Assurance Plc Group Personal Pension Plan and CGU Life Personal Pension Plan.
i
i
-I
! i !
I
J
I
¡
Notes to the Financial Statements
Notes to the Financial Statements for the Year Ended 31 March 2000 (Continued) 6 (t) Seconded Staff Staff were seconded from the following organisations to the Agency during the accounting period. Organisation
80
4
19
Cost £000
Cit)' of Liverpool
10
staff
Manchester Biotech
19
of
Manchester City Council
10
No.
Manchester TEC
Barda)'s Bank
o ldham Borough Council
17
89
10
8
1999
Stockport & High Peak TEe
2000
Turner & Townsend
Total 7 Other Adminstration Costs
6
13
Si
£000 257
404
819
£000 OÙier stalf costs
Travel & Subsistence
Offcc costs
1,546
2,295
115
Estate l\1anagcmcnt
1,333
9
Marketing and PR Professional costs
1,291
247
IT and communication
Depreciation
397
284
54
6
220
67
OpCì:âiing ieã~i=-cï-Ïãls
8,876
Auditors' remuneration
Other accountancy services
8 Notional Cost of Capital \\Then calculating the surplus or dcfìcit for the year, the Agency is required to include as expenditure, a notional cost of capital, to the extent that there is no real
charge for this. This has been calculated as 6% of the average of total assets icss current liabilities. After the surplus or deficit for the year there is an entry reversing this
amount.
i I I i
I ì ,
I
I I I i
i
.. -
Notes to the Financial Statements
Notes to the Financial Statements
GROUP 1999
£000
2000
82
£000
86,104
92,651
6,547
92,651
(2,305) 2,017
86,104
(2,305) 2,017
AGENCY 1999 LOOO
£000
AGENCY
(595) 91,768
£000
5,825
5,825
GROUP
(595) 91,768
6,547
£000
2000
for the Year Ended 31 March 2000 (Continued) 12 Investment Assets
Transferred out of predecessor organisations at 1 April 1999 Additions in year
Disposals Surplus on Revaluation
Transfer to Properties occupied by Agency
Valuation at 3 i March 2000
13 Investments Subsidiary Undertakings
Loans
31 March 2000
Class of Shares
Garstoii, Liverpool
Development of Speke-
(1,207)
1,207
Management of Maryport Harbour
Nature of Business
(1,207)
1,207
£000
Class of Shares
Development of Whitehaven Harbour
AGENCY
Ordinary
£000
Interest
Ordinary
GROUP
Business
Interest
101'
Ordinary Shares
Transferred from predecessor organisations at 1 April i 999
31 March 1999
Nature of
Undertaking
80.1%
Name of
Speke Garston Developments Ltd
Associated Undertakings Cost or VaIuation~--
Shares 3 1 March 1 999 '.-:Transferred from predecessor
37.5%
40.5%
Name of
Undertaking Business
31 March 2000
Provisions
Maryport Developments Limited
organisations 1 April 1999
Whitehaven Development Company Limited
During the year the Board decided to transfer the investment in Whitehaven Development Company Limited at nil consideration to W3M, a charitable foundation.
The investment in Maryport Developments Limited was provided for fully to reflect NWDA's intention to withdraw from this investment in the short term.
The investment has therefore been fully provided against.
Notes to the Financial Statements for the Year Ended 31 March 2000 (Continued)
1999
£000
2000
83
LOOO
Transferred out of predecessor organisations at 1 April 1999
4,077
27,221
19,858
5,425
487
13,946
14 Development Assets 2000
GROUP £000 Additions in year
5,425
(3,206)
2000
LOOO
1999
£000
2000
13,246
£000
(8,771) 24,746
(6,612)
36,723
GROUP
Surplus on revaluation for Ù1C year
Aiiiounts written off Disposals Valuation at 31 March 2000
15 Debtors
AI110unts receivable within onc year:
AGENCY
AGENCY
1999
£000
1999
£000
50
441
538
2,407
50
441
208
4,066
538
128
Prcpayments
Othcr debtors
1,379
11,763
6,659
148
191
Valuc Added Tax
128
Grant receivable in 2000/0 i for expenditure incurred
148
3,470 10,250
1999
180
1,379
European Regional Development Fund
Amount due from subsidiary undertaking
16 Creditors: Amounts fallng due within one year
180
in 1999/00
AGENCY
Rural Loans
Trade debtors
GROUP
861
1,567
381
302
10
861
181
LOOO
10
2,157
181
2000
302
135
LOOO
RDC loan intcrcst due to DETR
1,967
5,413
1999
Grant for coalfield expenditure
1,567
181
£000
Other creditors
2,157
181
2000
Corporation tax
1,183
£000
Prc-paid income
8,047
Trade creditors
Accruals
f\jotes to the
Financial Statements
Notes to the Financial Statements
GROUP
for the Year Ended 3 i March 2000 (Continued) 17 Provisions for Liabilties and Charges
84
AGENCY 1999
256
2000
259
1999
256
515
2000
259
£000
Transferred from predecessor organsations 1 April 1999
515
£000
Provided during year
4,959
£000
2000
AGENCY
AGENCY
LOOO
1999
LOOO
1999
£000
1999
LOOO
31 March 2000
4,959
4,959
1999
2000
AGENCY
LOOO
Provision for year
4,959
5,474
Dilapidations
31 March 2000
5,474
Deferred làx
Total Provisions for Liabilities and Charges
2000
4,959
£000
4,959
LOOO
4,959
1999
4,959
2000
(1-,606)
£000
108
1,207
2,665
2,956
108
(3,223) 6,303
(158)
1,207
8,369
£000
GROUP
LOOO
GROUP
The major components of Ùie provision for deferred taxation ,,,'hich has been fully provided at a corporation tax rate of 300/0 arc as f01l0\-\s:
Accelerated capital allm,\'ances
Pension fund prepayment and other timing differences
ia Income and Expenditure Reserve
Prm'Isions against investment in associated undertakings
Trans~~~~~1 froi~_ pr~!e~~ss~c~?:g~.nisations i April 1999
transferred from GIA reserves Other reserve release
Subsidiary Undertang (Dcfìcit)/ surplus for year
Balance at 31 March 2000
19 Revaluation Reserve GROUP 2000
509
2,017
LOOO
2,017
4,916
1999
509
7,442
£000
4,916
2000
Arising on revaluation of development assets
7,442
£000
Arising from revaluation of coalfield assets
Arising on revaluation of investment properties
l(ital
Notes to the Financial Statements
_.._-
--- _._~--_.- _._-
£000
1999
£000
2000
85
2000
1,451
1,451
109,262
(2,779)
(852)
107,082
(2,779)
101,257
(2,305)
487
(6,612)
5,952
(2,305)
487
(6,612)
(1,207) 103,397
£000
2000
1999
2000
76
(108)
184
£000
76
(108)
184
£000
AGENCY
AGENCY
- - ~-----~~--~
(1,207) 97,572
5,952
(852)
----~---~---_.~._- -- _..~-----
103,437
GROUP
£000
GROUP
for the Year Ended 31 March 2000 (Continued) 20 Grant in Aid Reserve
Balance at 1 April 1999
English Partnerships
Transferred from: Rural Development Commission
Fair Value Adjustments English Partnerships Development Assets Rec1assifìcation to Operating Assets
Restated Transfer
Additions Investment Assets
Development Assets
Disposals Investment Assets
Development Assets
Provision against investment in associates
Balance at 31 March 2000
21 Other Reserves ----.--- ----.- --
Transferred from predecessor organisations at 1 April i 999 Moyement in year Balance at 3 i March 2000
1999
£000
1999
£000
- -
------
J
Notes to the Financial Statements
Notes to the Financial Statements
£000
1999
£000
2000
86
2000
3,750
£000
GROUP
for the Year Ended 3 i March 2000 (Continued) 22 Loans: Amounts repayable after more than one year
Loan Stock
AGENCY 1999
£000
The loan stock was issued on lOth July 1996 by the Agency's subsidiary Speke Garston Developments Limited. It is unsecured and no interest is payable unless written
notice is received from the stockholder with the Agency's agreement. No notice has been received to date.
£000
1999
The loan stock is redeemable on 25th April 2003 in accordance with a shareholders' agreement unless certain changes in the shareholding trigger earlier redemption.
23 Analysis of Changes in Cash and Cash Equivalents During the Year 2000
1,899
£000
Buildings
£000
Others
1999
£000
1,900
Cash at bank and in hand at 31 March 1999 Net cash inflmv
24 Operating Leases
Cash at bank and in hand at 3 I March 2000
2000
£000
Others
57
3
_3-
£000
316
238
1999
__18L_
£000
605
2000
44,848
£000
_289_
Buildings
As at 31 March 2000 the Agency had annual commitments under operating leases as follows:
Leases expiring:-
- within onc year _,___ between one and five years
Rental costs of operating leases are charged to the Income and Expenditure Account on a straightlinc basis over the term of the lease.
25 Contingent Liabilities At 31 March 2000 there were no significant contingent liabilities (1999 nil).
26 Commitments
Expenditure authorised by the Board and contracted for at 31 March amounted to:
All commitments relate to programme expenditure in relation to the Land & Property Prograll1me, Single Regeneration Budget and Skills Development Fund.
Notes to the Financial Statements
87
Board members took no part in the discussions or in the subsequent decisions by the Board on proposals which concern organisations that members have connections as reported on the register of member's interests.
Burnlcy Borough Council
Manchester City Council
St. Helens Chamber of Commerce
Connccted Party
Ll.lm
L3.4m
£16.Sm
LO.Sm
of transaction
Total value
Grants
Grants
Grants
Grants
transaction
Nature of
Northwcst Devclopmcnt Agency apart from those dctailed below:
relatcd parties has undcrtakcn any matcrial transactions with thc
During thc ycar nonc of thc Board membcrs, key managemcnt staff or other
for the Year Ended 3 i March 2000 (Continued)
Agency is a Non-Departmental Public Body
27 Related Party Transactions The Northwest Development
sponsored by the Departmcnt of thc Environment, Transport and the Rcgions
(DETR). DETR is rcgarded as a relatcd party with which, during thc year, Northwest Development Agency has had a significant nwnber of matcrial transactions.
In addition, Northwest Development Agency has had a number of material transactions with other Government Departmcnts and other central
Stoekport MBC
Government bodies, including English Partnerships, Ùie Department of Trade
and Industry, the Ministry of Defence and various local authorities.
Nanic
Mike Doyle (Deputy) Richard Leese (Board Member) Kath Reade (Board Member)
Or Fred Ridley (Board Member)
¡
I
~
Notes to the Financial Statements
Notes to the Financial Statements for the Year Ended 3 i March 2000 (Continued)
Fair Value Adjustment
Transferred from RDe at 1 April 1999
88
Tangible Assets
Investment
Property
Dev
Operatig
Tangible
AGENCY
Operatig £000
15,973
£000
328
£000
Assets
De\'
£000
92,537
(852) 91,685
1,216
13,194
16
1,180
852
1,191
235
(2,779)
16
16
(1,216) 1,451
81
16
1,216
852
339
Assets
Property £000
Assets
£000
15,973
13,194
(2,779) 85,860
1,216
(852)
86,712
Investment
GROUP
28 Analysis of Tangible Operating, Investment and Development Assets Transferred in from Predecessor Organisations to the Agency
English Partnerships
Transferred /i'om English Partnershps at 1 April 1999 Fair Value Adjustment
Reclassifcation of Assets
235
(1,216)
Adjusted Balance transferred to NWDA at I April 1999
1,216
Rural Development Commission
1,451
81
81
1,277
852
425
81
(1,216) 13,946
(2,779)
17,941
752
364
752
92,772
93,136
436
852
752
17,941
(2,779) (1,216) 13,946
1,288
752
Reclassifcation of Assets
87,311
364
86,947
Adjusted Balance transferred to NWDA at 1 April 1999
Inward Transferred from Inward at 1 April 1999
Fair Value Adjustment Reclassification of Assets
Adjusted Balance transferred to NWDA at 1 April 1999 Coalfields Assets Transferred from EIlglish Partnerships at 1 April 1999
Fair Value Adjustnient
Adjusted Balance transferred to NWDA at 1 April 1999
Total Transferred from predecessor orgasations at 1 April 1999 Fair Value Adjustment,
Reclassifcation of Assets
Adjusted Balance transferred to NWDA at 1 April 1999
Annex i Northwest Development Agency Direction on the Annual Accounts The Secretary of State for the Environment, Transport and the Regions, with the consent of the Treasury and in accordance with the Regional Development Agencies Act 1998, hereby notifies the Northwest Development Agency
(hereafter in ths direction referred to as "the Agency") of the followig
requirements in respect of its anual accounts.
1. The annual accounts, which it is the duty of the Agency to prepare in respect
of each financial year, shall comprise:
(a) a foreword
total recognsed gains and losses, where applicable
(b) an income and expenditure account (c) a statement of
(d) a balance sheet (e) a cash flow statement
including in each case such notes and additional information as may be
of
the ยกficomeand
necessary for the purposes referred to in paragraph 2, below, and in
Schedule 2 to ths direction.
2. The anual accounts shall give atyueand fair view
expenditure and cash flows for the year and the state of affairs at the yearend. Subject to ths requirement, the annual accounts shall be prepared in
accordance with:
(a) the accounting and disclosure requirements of the
Companies Act 1985;
the accounting and disclosure requirements given in The Fees
(b) generally accepted accountig practice in the United Kingdom;
(c)
and Charges Guide in particular, those relatig to the need for
89
segmental information for services or forms of services provided by the Agency;
Treasury guidance Executive Non-
(d) the accounting and disclosure requirements given in Government Accounting and in the
Departmental Public Bodies Annual Reports and Accounts Guidance,
as amended or augmented from time to time, except as deso-ibed in
paragraphs 7 and 10 of Schedule 1 to ths direction;
Treasury may issue from time to time in
respect of accounts that are required to give a true and fair view;
(e) any other gudance that the
insofar as these requirements are appropriate to the Agency and are in
force for the year for which the accounts are prepared.
3. Clarification of the application of the accounting and disclosure
requirements of the Companies Act 1985 and accounting standards is given in Schedule 1 to ths direction. Additional disclosures required by the
Secretary of State are set out in Schedule 2.
accounts.
4. TI1Is direction shall be reproduced as an appendix to the annual
Signed by authority of the Secretary of
State for the Environment, Transport and the Regions
~-MHCOULSHED A Senior Civil Servant in The Department of the Environment,
Transport and the Regions 31 March 1999
Schedule 1
Schedule i Application of the Accounting and Disclosure Requirements of the Companies Act 1985, Accounting Standard and Generally Accepted Accounting Practice I. Disclosure exemptions for small and medium-sized companies permitted by the Companies Act 1985, and by accounting standards, shall not apply to the
90
7. Revaluation of fixed assets shall be accounted for accordig to accountig standards FRS3 and FRS I I .
8. Stocks shall be stated at thc lower of replacement cost and net realisable value.
9. The balance sheet shall include a provision for deferred tax, including tax
purposes is likely to be less than the cost to the Agency, and tax arising on the
Agency.
amount by which stocks are stated at a value greater than cost.
arising on the eventual disposal of an asset whcre the cost allowed for tax
2. The foreword shall contain the information required to be disclosed in
10. In accordancc with accountig standard FRS 12, there shall be no provision
diectors' reports attached to companes annual accounts, to the extent that such requirements are appropriate to the Agency and for which purpose the Agency's
board members and accowlting offccr shall bc takcn to be directors.
I I . The forward and balance sheet shall bc signed and dated on behalf of the
for unsured losses. in Schedule 4 to the Companies Act 1985 adapted where necessary to suit the
Agency's board members and by its accounting offcer.
3. The Agency's income and expendituc account shall be in format I as set out
special nature of the Agency's business. The balance sheet shall be in format I . In the balance sheet, totals shall be struck at ''Total assets less current liabilities".
4. Expenditure in the income and expenditue account shall include a notional
cost of capital, at 6% of the average of total assets less current liabilities, to the
deficit for theycar.
extent that there is no real charge for ths. This amount shall be reserved after - the -linc -showing thesurplus or
5. The requirement of accounting stadard FRS3 to include a note of the
shown in the income and expenditire account, shall not apply to
historical cost profit or loss for the year where this amount is materially different
Agency.
from the result the
6. Fixed assets shall bc stated in accordĂ nce with accountig standards except where the Treasury have given instruction on the valuation of specific tyes of
assets, in which case the instruction shall be reproduced in a note to the annual accounts.
Schedule 2 Additional Disclosure Requirements The following information shall be disclosed in the annual accounts, as a
minmum, and in addition to the information required to be disclosed by paragraphs 1 and 2 of t1s direction.
1. The foreword (a) a description of the Agency's incorporation and statutory authority (b) a statement that the anual accounts have been prepared in a form directed
by the Secretary of State for the Environment, Transport and the Regions
the board members' responsibilities
Agency Act 1998
with the consent of the Treasury and in accordance with the Regional Development
(c) a statement of
(d) a statement of the accountig offcer's responsibilities (e) a statement on the system of internal fiancial control
(f) a statement on compliance with the CBI Prompt Payment Code (g) a statement that, throughout the year and in all material respects, the Agency
complied with the terms of the fmancial memorandum issued by the Secretary of State for the Environment, Transport and the Regions (h) a statement on the Agency's policy for conserving energy, reducing waste and minimising the release of greenhouse gases.
2. The income and expenditure account, in the order below (a) the followig operating income:
(i) grants and contributions (ii) proceeds from the disposal of development property (iii) rental income
(iv) other income
91
(b) the following operating expenditue: (i) book value of development property sold (ii) transfers to public assets (see 3(a) below)
(iii) debts written off and movements in provisions for bad
and doubtful debts (iv) admnistrative expenses (v) other operating charges
(c) operating surplus/deficit
(d) the notional cost of capital, which shall be explained in a note to the anual
accounts showing the basis of calculation (e) surplus/deficit on ordinary actvities before taxation
(f) the tax charge for the year
(g) an entry reversing the notional cost of capitaL.
3. The balance sheet, or the notes thereto (a) an analysis of tangible fixed assets between: (i) operatig assets
(ii) investment property (iii) public assets -
wherepublicasseis areassèts s1.chas roàdsthathàve no riarKetvalue()utsidethe public sector. Such assets are stated at cost after an appropriate charge to the
income and expenditure account to reduce their carrying value to the estimated recoverable amount
(b) an analysis ofliquid resources (as defied by accounting standard FRS1)
(c) grant-in-aid debtors (d) prepayments
(e) payments on account (f) grant-in-aid creditors
Notes to the Financial Statements
(g) an analysis of reserves between: (i) the grant-in-aid reserve, being the cumulative total of grant-in-aid
received by the Agency less the cuulative total of grant-in-aid
released to the income and expenditue account (ii) the income and expenditure account (iii) revaluation reserve
(iv) other reserves.
4. The notes to the annual accounts (a) a statement of performance against key financial targets agreed in
Trade and Industry and the Department for
advance with the Department of the Environment, Transport and the Regions, the Department for
Education and Employment
(b) an analysis of grants and contributions paid, and a statement of the value of
interest payable as follows:
outstanding grant and contributions commitments (c) an analysis of
ofloans
(i) premium payable on prematue redemption
(ii) interest payable on loans from government
departments, showing the amount payable to
each creditor department
92
Agency, and investments owned by the Agency, during the year
(f) a statement showing the movements on long term loans given by the
(g) a statement of outstanding commitments for loans granted, and for
Agency's board members and the
committed lending in future periods the
accounting offcer during the year (with separate disclosures where more
(h) a report on the emoluments of
than one person occupied ths offce). The report shall include full details of all elements in the remuneration package of each person by name or job title, such as fees, salary, annual bonuses, payment on termination of offce,
other taxable benefits, pension contributions and the performance related elements of these (for which the basis on which the performance is
measured shall be explained). For each board member, the report shall also show the time commitment in terms of days per month. If a board member
has been appointed for a fixed term or if the accountig offcer is on a fixedterm service contract, the term shall be stated together with details of any
predetermined compensation on termination of offce (i) a statement of the pension arrangement of the Agency's board members and for the accounting offcer, as follows:
ths shall be stated
(i) if they are members of the ordinary pension scheme,
or enhanced contributions made by the Agency, the amounts of all
(ii) if they are members of the ordinary share scheme but with additional
such contributions shall be shown
(iii) interest payable on other loans, repayable after
more than one year, and on any part of a loan
personal !:iension pIan,
part-time employees, analysed between appropriate categories
(ii) the average number of persons employed during the year, including
multiples of ÂŁ10,000 per anum, starting at ÂŁ40,000 per annum
mentioned in paragraph 4(h), above), fell in each bracket of a scale in
(excluding pension contributions but including the other elements
(i) the number of employees during the year whose emoluments
showig:
(j) details of employees, other than board members and the accounting offcer,
the amolUit shall be shown
(hi) . i(the Agency has made anycontribiitions to a
that is repayable after more than one year, and imputed interest on finance lease obligations payable after more than one year (iv) other interest payable
(d) particulars of indebtedness to government departments, including details of
repayment terms, maturity dates and interest rates (e) an analysis of interest receivable as follows:
(i) interest receivable on long term loans (ii) bank interest receivable (iii) other interest receivable
\
i.
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who have loans outstanding in excess of £2,500
(iii) the total amount of loans to employees and the number of employees
(iv) employee costs during the year, showing separately: (1) wages and salaries (2) social security costs
(3) payments for unfunded pensions
(4) early retirement costs (5) other pension costs, with details
, above) exceeded £50,000; and
the Income and
of a type which parliament cannot be supposed to have contemplated.
a statement of losses and special payments during the year, being transactions
member of the same household
Corporation Taxes Act 1988 or superseding legislation and including a
a connected person shall be as defuied in section 839 of
other elements mentioned in paragraph 4(h)
emoluments in the year (excludig pension contributions but including the
Agency. For these purposes, a senior employee means someone whose
during the year, had a direct financial interest that was notified to the
employee, or a person connected with any of the foregoing, at any time
exceeding £5,000 in value, in which a board member, an executive, a senior
transactions at arm's lengt, entered into by the Agency with another party,
contract of service or of employment with the Agency), including
(k) particulars of any transactions, arrangement or contract (other than a
(I)
Disclosure shall be made of the total of losses and special payments if ths exceeds £100,000, with separate disclosure and particulars of any individual
it is considered material in the
amounts in excess of £ 100,000. Disclosure shall also be made of any loss or special payment of £100,000 and below if
context of the Agency's operations
93
(m) an analysis of grants and contributions received in the year, as follows:
appropriate vote and class and reconciled to the amount released to
(i) grant-in-aid received from government departments, referring to the
the income and expenditure account
(ii) European receipts
(iii) other grants and contributions, identified as to each source
recoverable VAT) and receipts (net of
the yeal~ describing the basis for, and the calculation of the amount..
payments (net of
VAT)
(n) a statement of any amounts surrenderable to government departments for
(0) a statement of
Trade and
analysed according to headings agreed with the Department of the
Environment, Transport and the Regions, the Department for
Industry and the Department for Education and Employment
r L
r . If L
r
"
who have loans outstanding in excess of £2,500
(iii) the total amount of loans to employees and the number of employees
(iv) employee costs during the year, showing separately:
(1) wages and salaries (2) social security costs
(3) payments for nnunded pensions (4) early retirement costs
(5) other pension costs, with details
93
(m) an analysis of grants and contributions received in the year, as follows:
appropriate vote and class and reconciled to the amount released to
(i) grant-in-aid received from government departments, referring to the
the income and expenditue account
(ii) European receipts
(iii) other grants and contributions, identified as to each source
VAT)
(n) a statement of any amounts surrenderable to government departments for
recoverable VAT) and receipts (net of
the year, describing the basis for, and the calculation of the amount
payments (net of
Environment, Transport and the Regions, the Department forTrade and
analysed accordig to headings agreed with the Department of the
(0) a statement of
contract of service or of employment with the Agency), including
Industry and the Department for Education and Employment
(k) particulars of any tTansactions, arrangement or contract (other than a
transactions at arm's lengt, entered into by the Agency with another party, exceeding £5,000 in value, in which a board member, an executive, a senior employee, or a person connected with any of the foregoing, at any time
during the year, had a direct financial interest that was notified to the
Agency. For these purposes, a senior employee means someone whose emoluments in the year (excluding pension contributions but including the
other elements mentioned in paragraph 4(h), above) exceeded £50,000; and a connected person shall be as defined in secton 839 of the Income and Corporation Taxes Act 1988 or supersedig legislation and including a
member of the same household
(i) a statement oflosses and special payments during the year, being transactions of a type which parliament cannot be supposed to have contemplated. Disclosure shall be made of the total of losses and special payments if ths exceeds £100,000, with separate disclosure and particulars of any individual
amounts in excess of £ 100,000. Disclosure shall also be made of any loss or special payment of £ 100,000 and below if it is considered material in the context of the Agency's operations