Year ending 31 March 2015

New Forest National Park Authority

Financial Report - Year Ended 31 March 2015

Chairman of the Authority

Oliver Crosthwaite-Eyre

Chief Executive

Alison Barnes

Chief Finance Officer

Bob Jackson, CPFA

Contents

Explanatory Foreword

Introduction

The purpose of this foreword is to provide a clear and understandable guide to the most significant matters reported in the financial statements.

Accounting Policies and Comparative Information

The accounting policies, on which the figures in the financial statements are based, are set out in Note 1 (p 25) immediately following the financial statements.

Financial Background

The current economic prospects look mixed, with the wider UK economy showing some signs of recovery but the prospects for the public finances continuing to look fairly poor; indeed the Chancellor himself has warned “the job is far from done”.

The Government cuts for many public sector organisations have continued with the most recent settlement announcement for this Authority giving a further cut of 1.7% for 2015-16. In real terms, the central government (Department for Environment, Food and Rural Affairs) support for National Park Authorities has been cut by nearly 40% since 2010.

The Defra grant in 2014/15 was £3.091m; this compared with £3.379m for the previous year and is now projected to fall to £3.037m in 2015/16. The Government is also currently limiting public sector pay increases to 1% per annum for the foreseeable future (a 1% pay award was given to Authority Staff and Members in 2014/15).

Inflation (Consumer Prices Index) peaked at 5.2% in September 2011 but has been steadily falling since, moving below the Government’s 2.0% target in January 2014 and has more recently fallen to -0.1%. The Bank of England base rate has remained constant at 0.5% since March 2009. Any interest rate change is far from certain but most commentators are now predicting it may begin to rise around mid-2016. This directly impacts on the Authority’s ability to support its budget in the medium term through investment income.

Within the economic climate, this Financial Report gives a snapshot of the Authority’s financial performance up to 31 March 2015. However it should also be noted that the Authority has a robust Medium-Term Financial Plan in place and a prudent level of reserves; these give the Authority the time and flexibility to meet the pressures that it faces.

Financial Performance

The original 2014/15 expenditure budget was £5.230m and income was estimated at £4.9m (both figures include £1.4m for externally-funded projects).

The net ‘saving’ at year-end was £102,000 – this reduced the call on the Revenue Support Reserve to £3,000 (down from the original budget estimate of £105,000). This saving is detailed in the Authority’s own reporting format in Note 7 (p.40). In addition, a net amount of £130,000 was funded from other Earmarked Reserves this year.

This chart shows the income generated by the Authority in 2014/15:

The Authority is heavily reliant on its core Defra grant (£3.091m), making up 63% of total income. The Authority also generated £1.2million external funding, £340,000 in planning fees, £155,000 from shared services and £120,000 in other income.

This chart shows the expenditure of the Authority in 2014/15:

A significant proportion of the Authority’s expenditure (48%) is for front-line and back-office staffing; this figure includes direct salaries plus on-costs (National Insurance & Pensions). The Authority also spent £580,000 on its Programme Fund and Sustainable Communities Fund projects, as well as the significant external and grant funding it generated this year.

General and Earmarked Reserves

The Authority’s General Fund Balance is currently £0.3million, with a further £1.7million in other earmarked reserves.

Capital Spending

During 2014-15 the Authority incurred capital expenditure of £687,000 funded by capital grants, developers’ contributions and the General Fund. Expenditure was incurred as follows:

Pension Scheme Assets and Liabilities

The pension liability is based on an actuarial valuation and represents the benefits that have been accrued by members of the local government pension scheme.

The Authority’s Balance Sheet shows a net pension liability of £4.364m, deriving from assets valued at £7.238m compared to a liability estimated at £11.602m. Whilst this has a substantial impact on the net worth of the Authority as recorded in the Balance Sheet, statutory arrangements for funding the deficit mean that the financial position of the Authority remains healthy, as the deficit on the scheme will be made good by increased contributions over the working lives of employees.

The net pension liability has increased by £951,000 from 31 March 2014 (compared to a decrease of £280,000 the previous year).

Financial Statements

The financial statements and their purpose are summarised as follows:

• Comprehensive Income and Expenditure Statement (page 20)
  This statement discloses the revenue expenditure and income by service for the year ended 31st March 2015. The statement shows the true economic (accounting) cost of providing those services, prior to any statutory amounts required to be charged through the accounts (which are shown in the Movement in Reserves Statement).
• Balance Sheet (page 21)
  The Balance Sheet discloses the financial position of the Authority as at 31st March 2015. The net assets of the Authority (its assets less liabilities) are matched by reserves held by the Authority.
• Movement in Reserves Statement (page 22-23)
  This statement discloses the movement in the year on the different reserves held by the Authority, analysed into ‘usable reserves’ (i.e. those than can be applied to fund expenditure) and other reserves.
• Cash Flow Statement (page 24)
  The Cash Flow Statement discloses the inflows and outflows of cash arising from the activities of the Authority for the year ended 31st March 2015.
• Notes to the Accounts (pages 25-70)
  The Notes disclose more detailed information on the figures provided in the Comprehensive Income and Expenditure Account, Balance Sheet, Movement in Reserves Statement and Cash Flow Statement. Note 1 discloses the accounting policies used by the National Park Authority in compiling the financial statements.

Bob Jackson, CPFA

Chief Finance Officer

24th September 2015

Statement of Responsibilities

1. The Authority’s Responsibilities

The Authority is required to:

• Make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. In this Authority, that officer is the Chief Finance Officer;
• Manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets;
• Approve the Statement of Accounts.

2. The Chief Finance Officer’s Responsibilities

The Chief Finance Officer is responsible for the preparation of the Authority’s Statement of Accounts in accordance with proper practices as set out in the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Local Authority Accounting in the United Kingdom (‘the Code of Practice’).

In preparing the Statement of Accounts, the Chief Finance Officer has:

• Selected suitable accounting policies and then applied them consistently;
• Made judgements and estimates that were reasonable and prudent;
• Complied with the Code of Practice;
• Kept proper accounting records which were up to date;
• Taken reasonable steps for the prevention and detection of fraud and other irregularities;
• Taken measures to ensure that risk is appropriately managed.

3. The Chief Finance Officer’s Certificate

I certify that the Statement of Accounts for the year ended 31 March 2015 has been prepared in accordance with the Accounts and Audit Regulations 2011 and that it gives a true and fair view of the financial position of the New Forest National Park Authority as at 31 March 2015 and its income and expenditure for that year ended.

Bob Jackson, CPFA

Chief Finance Officer 24 September 2015

4. Approval of the Accounts by the Authority

I confirm that these accounts were approved and authorised for issue by Members of the Authority at the meeting held on the 24 September 2015.

Oliver Crosthwaite-Eyre

Chairman of the Authority 24 September 2015

Annual Governance Statement

2014/15

Scope of responsibility

The New Forest National Park Authority is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for and used economically, efficiently and effectively.

The Authority also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.

In discharging this overall responsibility, the Authority is also responsible for putting in place proper arrangements for the governance of its affairs, facilitating the effective exercise of the Authority’s functions and which includes arrangements for the management of risk.

The Authority approved and adopted a Code of Corporate Governance, which is consistent with the principles of the CIPFA/Solace Framework Delivering Good Governance in Local Government. A review of compliance with the Code is carried out on an annual basis by the Chief Executive, Monitoring Officer and Chief Finance Officer. A copy of the Code is published on the Authority’s website and can be obtained from Corporate Services.

This statement explains how the Authority has complied with the Code and also meets the requirements of Regulation 4(3) of the Accounts and Audit Regulations 2011 in relation to the publication of a statement of corporate governance.

The purpose of the governance framework

The governance framework comprises the systems and processes, and culture and values, by which the Authority is directed and controlled and its activities through which it accounts to, engages with and leads the community. It enables the Authority to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective services.

The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives, and can therefore only provide reasonable and not absolute assurance of effectiveness.

The system of internal control is based on an on-going process designed to identify and prioritise the risk to the achievement of the Authority’s aims, objectives and policies, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.

The Governance Framework

The Local Code of Corporate Governance describes the Authority’s governance framework in relation to the six core principles below and demonstrates how it complies with these:

1. Focusing on the purpose of the Authority and on outcomes for the community and creating and implementing a vision for the local area;
2. Members and Officers working together to achieve a common purpose with clearly defined functions and roles;
3. Promoting values for the Authority and demonstrating the values of good governance through upholding high standards of conduct and behaviour;
4. Taking informed and transparent decisions, which are subject to effective scrutiny and managing risk;
5. Developing the capacity and capability of members and officers to be effective; and
6. Engaging with local people and other stakeholders to ensure robust public accountability.

This code was adopted by the Authority in June 2012.

Through carrying out its general statutory duties and responsibilities in connection with the two national park purposes, the Authority also seeks to work for and with the local community to foster the social and economic wellbeing of communities within the National Park.

Focusing on the purpose of the Authority and on outcomes for the community and creating and implementing a vision for the local area

The Authority’s purposes, vision and intended outcomes for residents, visitors and other stakeholders are identified in a range of policy documents. The overarching vision for the management of the Authority during 2014/15 was set out in the Management Plan 2010 - 2015. The plan was developed following extensive community engagement.

The Authority’s Business Plan 2011 – 2015, published in June 2011, set out the main framework for the work programme for the Authority over the four years based on objectives and actions from the Management Plan. The work programmes are aligned to the Authority’s purposes and duty of Protect, Enjoy, Prosper and Aiming for Excellence.

A more detailed annual Operational Plan set out how these objectives and actions would be delivered. Progress is monitored regularly by Executive Board and the Resources, Audit and Performance Committee. The Plan presents an account and assessment of the Authority’s activities, alongside the separate reports of its financial position and performance.

The current National Park Management Plan was approved in 2010 as the overall strategic plan for all the key partner organisations in the New Forest. It is currently under review and this has taken the form of a light touch update focusing on the delivery of a set of priority actions for all partners during the period 2015 - 2020. The process is being overseen by a partnership group comprising the statutory bodies with responsibilities within the National Park and is proposed to be finalised in summer 2015. The new Business Plan for the period 2015-18 has also been drafted and will be approved alongside the updated Management Plan in summer 2015.

Management information is produced to assist with the measurement of performance including a number of performance indicators. Budgetary control reports are reviewed monthly by the Budget Holders and on a regular basis by the Executive Board and Resources, Audit and Performance Committee. The Committee also considers the Authority’s medium-term financial position. The Medium-Term Financial Plan aligns resources to their priorities. Where performance slips this is further examined and action taken where possible. The Authority continues to be very highly successful in attracting external funding into the area, leveraging around £13 for every £1 of funding we put towards partnership projects. It is also keenly investigating corporate partnerships (sponsorship) both internally and alongside the wider National Park family.

The Chief Executive reports to the Authority on the development and performance of the Authority overall. The Annual Report 2014/15, detailing the Authority’s activities and achievements over this period is currently being drafted and will be considered at the Annual Authority meeting on 16 July 2015. In November 2012, the Authority participated in its most recent independent, peer-assessed, quadrennial ‘National Park Authority Performance Assessment’. A copy of their final report, including recommendations, is available on the Authority’s website.

The Authority has adopted and maintained a complaints procedure to enable complaints about the Authority’s activities to be considered and responded to. Information on how to use the complaints procedure is available via a complaints leaflet and the Authority’s website. Information on complaints received is considered by the Authority’s Executive Board. Lessons for service improvement are identified wherever practicable.

The Authority is subject to a full and independent audit of the financial management arrangements in place for 2014/15. Audit reports are issued by the External Auditor and Internal Auditor to be considered by the Authority’s Resources, Audit and Performance Committee.

The Authority undertakes Equality Impact Assessments, in which services are required to review policies and procedures to ensure those services are delivered, designed and continually monitored to meet the needs of the whole community.

Members and Officers working together to achieve a common purpose with clearly defined functions and roles

Standing Orders, Scheme of Delegations, Financial Regulations, Contract Standing Orders and other procedures describe how the Authority operates and how decisions are made to ensure that these are efficient, transparent and accountable to local people. All these key policies were kept under review during the year and amendments made as and when necessary.

Meetings of the Authority are held in public (save for individual items of a sensitive nature properly considered in confidential session) with publicly available agendas and minutes, members of the public may ask questions and make representations on relevant matters at meetings. Each of the committees has distinct terms of reference, with each having a periodic review. Member attendance for the Authority and Committee meetings during the year was 78% (the same as 2013/14).

The roles and responsibilities of the Members and Officers are further defined in Member/Officer job descriptions and there is a Local Protocol for Member and Officer Relations. We have recently begun openly publishing Member attendance data on our website. The roles of Chief Executive, Monitoring Officer and Chief Finance Officer are filled, with each Officer understanding their relevant responsibilities.

The Authority has taken a decision to have a service level agreement (SLA) for the provision of the Chief Finance Officer in 2014/15, in order to ensure value for money. In reaching this decision the Authority took into account the governance requirements of CIPFA’s Statement on the Role of the Chief Financial Officer in Local Government (2010). The Chief Finance Officer (CFO) function is performed by the Executive Director of New Forest District Council. There are agreed protocols for consultation with the CFO on key decisions and advice to the Authority and its committees. The CFO or a nominated deputy attends meetings of the Authority’s Managers’ Forum and Executive Board in order to ensure a sound understanding of the organisation’s key priorities and risks. The role of the Monitoring Officer is performed in-house by the Senior Solicitor with a remaining nil-cost SLA with Hampshire for any additional specialist legal support required. All such service level agreements are reviewed and performance monitored.

Promoting values for the Authority and demonstrating the values of good governance through upholding high standards of conduct and behaviour

There are Codes of Conduct for Members and Officers in place and performance appraisal processes for Officers. Training is given to Members on the Code of Conduct and there is a Register of Members’ Interests. The Authority has implemented a new standards regime for the conduct of Members following the implementation of the Localism Act 2011. There is currently a Standards Committee which monitors the ethical framework of the Authority.

There is an adopted Whistleblowing Policy, with confidential reporting arrangements in place to enable internal and external whistle-blowing which was updated in March 2014. There is also an Anti-fraud & Corruption Policy in place and a supplementary Anti-Money Laundering Policy was approved in June 2013. A group of staff also reviewed the Authority’s core ‘Values’ during 2015.

The Monitoring Officer has recently reviewed the Authority’s Standing Orders and Scheme of Delegations and these were updated to clarify the approval process for significant grant applications made by the Authority.

Taking informed and transparent decisions, which are subject to effective scrutiny and managing risk

There is a systematic strategy, framework and processes for managing risk. A risk register is maintained and reviewed regularly by Executive Board and half-yearly by the Resources, Audit and Performance Committee. This enables relevant risks to be identified and evaluated, with consideration given to appropriate mitigation strategies.

Members oversee the strategic direction and annual objectives. This enables relevant risks to be identified and evaluated, with consideration given to appropriate mitigation strategies.

In March 2014 the Resources, Audit and Performance Committee approved an Assurance Framework which specifies the sources of information on which the Authority relies to gain assurance that all key risks are identified and that controls are operating effectively. It also approved an Internal Audit Charter which clearly defines the purpose, authority and responsibility of the internal audit activity.

The Authority has fully complied with the Local Government Transparency Code released in October 2014 and, as such, has a designated page on its website containing all the information required to be published; in a number of cases the Authority has actually gone beyond the minimum requirements of the Code and published further information to better aid understanding and transparency.

Following significantly increased procurement activity, particularly due to the large externally-funded grant schemes, the Authority undertook to strengthen its resourcing, documentation and processes in this important area. This work has been highly successful with a new fixed-term post of Finance and Procurement Officer being employed in November 2014 alongside a full suite of revised procurement documentation, a new online ‘e-tendering’ system procured and a number of training sessions held for relevant staff and managers. The Authority is fully compliant with the new Public Contract Regulations 2015 (including measures to support SME applications).

Developing the capacity and capability of members and officers to be effective

Senior Officers’ learning and development needs are identified and met through induction programmes and the appraisal system, which includes learning and development target areas. All new Members undergo a full internal induction programme and a general ‘National Parks’ induction is also now mandatory. In regard to existing Members, National Parks UK is currently working on establishing some appropriate on-going training programmes.

There have been a number of informal training sessions for Members and Members Days on various aspects of their responsibilities and to aid the development of policy.

The Authority seeks to continually train its Managers and Officers; in the last year the Authority has arranged training on employee performance monitoring (sessions for staff and managers), leadership coaching, data protection, continued a series of team workshops for the new Environment and Rural Economy team, held discovery days and many more specific personal development courses.

Engaging with local people and other stakeholders to ensure robust public accountability

The Authority has developed and maintained a range of relationships and arrangements with other agencies in the public, private and voluntary sectors, to ensure that they are able to engage with and contribute to the work of the Authority.

A Statement of Community Involvement (SCI) setting out how the National Park Authority would involve local communities and others in its work was approved by the Authority on 12 December 2013. Although the production of the SCI is a requirement of the Government’s planning regulations, updating the document also provided an opportunity for the Authority to set out how people can get involved in the preparation of the Authority’s other plans and strategies.

Member representation has continued with a number of external bodies such as the Court of Verderers, the Hampshire and Isle of Wight Local Government Association, Hampshire Senate, North Solent Shoreline Management Plan, New Forest Local Access Forum, New Forest Ninth Centenary Trust, New Forest Marque and Campaign for National Parks.

Partnership arrangements have been continued with the Ninth Centenary Trust for joint delivery of interpretation facilities in Lyndhurst, and with Camping in the Forest and Hampshire County Council for the provision of community rangers; the Authority had nearly 45,000 face-to-face contacts during the year to promote understanding of the National Park. Numerous events at schools and education centres have also taken place to help promote the understanding of the New Forest and engage with children.

The governance arrangements for the partnership with the Ninth Centenary Trust have been recently considered and approved by the Authority. The Authority continues to deliver nine Local Information Points in partnership with local businesses to provide information about the National Park for local communities and visitors. We still work with the Campaign for National Parks through their Mosaic outreach projects: staff are still in touch with black and ethnic minority groups in Southampton to help them visit and learn more about the National Park and we are two years into a three year project to increase citizenship, employability and engagement with the National Park by young people.

Authority staff were also invited to become ‘Dementia Friends’ and undergo relevant training to further understand the issues involved and see what they could do to help.

The Authority has continued to facilitate the New Forest Consultative Panel, which is an advisory forum comprising representatives from over eighty organisations with an interest in the New Forest National Park and adjacent areas. It meets every two months to discuss topical issues and provide views to the National Park Authority and other statutory bodies. We also facilitate other Forums with wide representation from relevant organisations to help guide and communicate work programmes relating to dog walking, cycling, equine issues, animal accidents and recreation management.

The New Forest Land Advice Service has continued to provide wide-ranging support to land managers and young commoners during 2014/15.

The Authority has been instrumental in assisting local Parish and Town Councils in developing a communication structure to engage with the public and assist in training for Council members. It routinely consults Parish Councils for their views on all planning applications by providing them with an initial planning officer assessment alongside details of the application. Communication has been aided further with the successful Parish Quadrant meetings which are held throughout the year and the Member presence at Parish Councils.

The Authority publishes Park Life, Pocket Guide and an Annual Report to ensure regular communication on our work performance and issues and opportunities, together with events, press releases, regular email newsletters, website updates and social media posts.

In November 2012 the Authority was subject to an independent, peer-led performance assessment. Their summary conclusion was that ‘The Authority is self-aware…(and) has applied itself to creating a step change in the way that it operates…..In particular it has applied considerable time, energy and effort to establishing good working relationships across the complex range of established organisations within the Forest. The distinctly different Authority is now recognised as positively changed by staff, Members, partners and communities alike and this outcome is a credit to the Authority’s dedication and resolve to make improvements.’ The Authority has fully reviewed and considered all the feedback and recommendations from the report.

Continuous Improvement

The Authority aims to be clearly accountable for the effective delivery of services, through setting targets and measuring performance. Through the National Parks’ Joint Improvement Group and local officer input, a revised and streamlined set of key national performance indicators has been agreed and implemented.

Objectives and targets are developed for each service, and performance reviewed against these. This has been particularly important due to the economic climate and being able to reach a balanced budget (including the planned use of reserves as appropriate) following the significant grant cuts. The Authority is also continuing to deliver its “Planning for the Future” programme ethos and has appointed a Member Task and Finish Group which focuses on efficiencies and working processes; this process will soon enter a further phase to guide the Authority through the next Comprehensive Spending Review which is due to take place later in 2015.

A small organisational restructure took place at the end of 2014/15 in response to a number of staffing changes and to meet budgetary restrictions prompted by reductions in Defra grant funding. The new structure ensures that the Authority is well placed to continue with its current level of work around the purposes and duty as well as continuing to foster and promote areas of increased joint working with partners and stakeholders.

Service level agreements with New Forest District Council provided the services of Chief Finance Officer, provision of strategic financial and HR advice, internal audit, and some accountancy services. The Authority also provides services to other local bodies through SLAs; these included archaeology, trees, rangers and ecology services during the last year. Further SLAs with NFDC for GIS and Building Conservation were agreed during the last year, which will come into effect during 2015/16.

Review of Effectiveness:

The Authority has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness is informed by the work of Officers within the Authority who have the responsibility for the development and maintenance of the governance environment, the Internal Auditor’s report and also by comments made by the external auditors and other review agencies and inspectorates.

Factors which influence the controls environment include: ethics, integrity, operating style and the way management and Members assign responsibility and authority.

The roles of the Authority, the Resources, Audit and Performance Committee and Internal Audit are explicit in maintaining the effectiveness of the governance framework.

The Authority’s risk register has been maintained and now details eight key risks from across the organisation; this compares favourably with thirteen risks which were identified back in 2013/14. By way of example, in 2014/15 the Authority chose to move its banking arrangements due to the increasing perceived risks identified with its existing provider.

Of the sixty Actions/Outcomes in the 2014/15 Operational Plan, fifty four were shown as “green” at year-end, five as “amber” and one as “red”. Of those six shown as amber or red, all have been addressed further in the 2015/16 Operational Plan and work schedules.

Major strategic plans and policies receive consideration by Members. A comprehensive scheme of delegation to Officers has been approved by Members, and makes clear that the role of Officers is to implement and give effect to strategies and policies approved by the Authority. An Internal Control Questionnaire was completed by managers and budget holders during 2014 and a full report on outcomes was provided to the Resources, Audit and Performance Committee in November.

Authority meetings are open to members of the press and public to attend and make presentments (save for individual items of a sensitive nature properly considered in confidential session). Agendas and minutes of meetings are available for inspection by the public both at the Authority’s offices and via the Authority’s website.

The Authority has maintained arrangements to ensure that its dealings are lawful and comply with financial regulations. The Authority’s Solicitor considers all reports considered by Members, and is present at meetings to give advice to Members as required. This assists in ensuring that the Authority discharges its functions in accordance with the law.

Members have a key role in providing assurance that the Authority’s funds are used economically, efficiently and effectively in accordance with agreed policies. The Medium-Term Financial Plan and Budget is agreed annually by the Authority and budget monitoring reports are considered quarterly at meetings of the Resources, Audit and Performance Committee. The Authority’s Accounts are subject to external audit on an annual basis and reported to the Authority at a public meeting.

There were two complaints made against Members during 2014/15 in relation to allegations of failure to comply with the Members’ Code of Conduct; each complaint was investigated and no fault was found in either case.

All Member meetings of the Authority commence with an item regarding declaration of pecuniary and non-pecuniary interests, with signed records of interests declared kept with the minutes of the meeting. A Register of Members’ Interests is maintained, in accordance with the Local Government Act 2000.

The Internal Auditor’s report for 2014/15 states “arrangements are in place to ensure there is an adequate and effective internal control environment.” and continues “Where minor control weaknesses were identified during the year, management have agreed to take action. Internal Audit monitors progress made against these recommendations and is content that management are implementing the required actions to further strengthen controls.”

Ernst & Young act as the Authority’s external auditors and are responsible for reviewing and reporting on the Financial Report (Statement of Accounts) and arrangements for securing economy, efficiency and effectiveness in the use of resources.

The Authority’s Business Continuity Plan was updated and reviewed during 2013/14 and approved by the Authority’s Executive Board. A limited simulation test of the key IT contingency features was carried out successfully by officers in January 2014 and an internal audit of the Plan in May 2014 produced a very positive audit with only one recommendation.

Officers have continued work on reviewing and updating the records management system for the Authority to meet statutory and best practice requirements. The design and implementation of this work has taken longer than expected and is now due to be completed during 2015/16.

Significant governance issues:

The Authority’s Standing Orders and Scheme of Delegations were fully reviewed by the Monitoring Officer during the latter part of 2014 and one key amendment approved at the Authority meeting in January 2015 (to clarify the approval process for significant grant applications made by the Authority).

As mentioned previously, the Authority is currently renewing both the Management Plan for the National Park (to be delivered by and in consultation with a large number of partners and stakeholders) and the Authority’s own Business Plan. Both documents will provide key strategic direction for the Authority over the coming years and will be approved during summer 2015.

During 2015/16 the Authority will be fully reviewing its Counter Fraud policies and procedures in light of the new code of practice from the Chartered Institute of Public Finance & Accountancy (CIPFA). It will also engage with CIPFA and others in relation to the new ‘International Framework for Good Governance in the Public Sector’ which is expected to be published soon.

Certification

To the best of our knowledge, governance arrangements, as defined above have been in place within the Authority for the year ending 31 March 2015 and up to the date of approval of the Annual Report and Statement of Accounts.

We propose to take steps over the coming year to address those areas identified above to further enhance our governance arrangements. We are satisfied that these steps will address the need for improvements that were identified during the review of effectiveness and will monitor their implementation and operation as part of our next annual review.

Statement of Accounts

Index of Notes to The Financial Statements

Comprehensive Income and Expenditure Statement for the year ended 31st March 2015

This account summarises the resources that have been generated and consumed in providing services and managing the Authority during the year. It includes all day-to-day expenses and related income on an accruals basis, as well as transactions measuring the value of long-term assets actually consumed and the real projected value of retirement benefits earned by employees in the year.

Bob Jackson, CPFA - Chief Finance Officer 24 September 2015