BROADS (2006) INTERNAL DRAINAGE BOARD

Transcription

1 BROADS (2006) INTERNAL DRAINAGE BOARD STATEMENT OF ACCOUNTS FOR THE YEAR ENDING 31 MARCH 2009 Kettlewell House Austin Fields Industrial Estate Kings Lynn Norfolk PE30 1PH

2 BROADS (2006) INTERNAL DRAINAGE BOARD STATEMENT OF ACCOUNTS FOR THE YEAR ENDING 31 MARCH 2009 CONTENTS Page List of Board Members as at 31 March Annual Report 2 The Annual Governance Statement 3 Statement of Responsibilities for the Statement of Accounts 4 The Income and Expenditure Account 5 The Statement on Movement of Reserves 6 The Balance Sheet 7 Notes to the Accounts 8-12

3 BROADS (2006) INTERNAL DRAINAGE BOARD MEMBERSHIP AS AT 31 MARCH 2009 NAME TOTAL MEETINGS NUMBER ATTENDED ATTENDANCE % CONTACT DETAILS ELECTED MEMBERS Alston H J (wef July 08) n/a Baugh L E lbaugh@netcom.co.uk Brooks B (resigned Dec 08) n/a Burton J (wef Jan 09) john.burton@esw.co.uk Buxton R (wef July 08) Robin.Buxton@ukgateway.net Cator H G * hcator@catorandco.com Chapman J W donna@swchapman.co.uk Daniels S G ** simondaniels@bestadsl.com Deane J (wef Jan 09) jdeane@pjdeane.fsnet.co.uk Gay G D ** hallfarm@mautbyfarms.co.uk Harris M (wef July 08) mpharris@fwi.co.uk Robinson I Ian.robinson@rspb.org.uk Strudwick T P tim.strudwick@rspb.org.uk Tallowin J G j.tallowin@keme.co.uk Wharton E office@whartonfarms.co.uk Withers J W K n/a Wright S D stephen@wrightfarms.co.uk APPOINTED MEMBERS Broadland DC Dewgarde D M dalmaine.dewgarde@ntlworld.com Green C A cllr.chris.green@broadland.gov.uk Kelly K S kennethskelly@yahoo.co.uk Nash R R rnash4wensum@aol.com Peters S (Mrs) shirleyhao@tiscali.co.uk Teager D E claudave@bannock.fsnet.co.uk North Norfolk DC Barran G W george.barran@north-norfolk.gov.uk Ford P E (Miss) (wef July 08) patricia.ford1@btopenworld.com Garrigan L (Miss) (upto April 08) n/a Partridge S J (wef July 08) simon.patridge@north-norfolk.gov.uk Price R C (wef July 08) richard.price@north-norfolk.gov.uk Sheridan C P (Miss) candy.sheridan@north-norfolk.gov.uk Stockton C clive.stockton@north-norfolk.gov.uk Tillet A M (Mrs) angie.tillet@north-norfolk.gov.uk Willcox P J peter.willcox@north-norfolk.gov.uk Great Yarmouth BC Coleman M (Mrs) mary.coleman@talk21.com Jermany G W gwj@great-yarmouth.gov.uk Reynolds C J reynolds.coaches@gtyarmouth.co.uk Shrimplin J R james.shrimplin@great-yarmouth.gov.uk Thompson D dwt@great-yarmouth.gov.uk Weymouth S (Mrs) shirleyweymouth@tiscali.co.uk * Chairman ** Vice-Chairman 1

4 BROADS (2006) IDB Annual Report The Broads (2006) IDB is an independent body created under Land Drainage Statutes responsible for flood defence, drainage and water level management works, other than on main rivers, in the Broads (2006) Internal Drainage District. Board Members are either elected by and represent the occupiers of land in the area, or are appointed by Broadland District Council, North Norfolk District Council and Great Yarmouth Borough Council. The Board secures income mainly from drainage levies on farmers and other occupiers and from special levies on local authorities. The Board also pays levies to the Environment Agency to fund works on main rivers that protect the drainage district. The Board consists of 19 elected members and 20 appointed members. This document is the statement of accounts of Broads (2006) IDB for the financial year ended 2008/09 which are set out on pages 4 to 12. The accounts consist of: The Annual Governance Statement This statement acknowledges the Board s responsibilities in terms of preparing the financial statements and ensuring that there is a sound system of internal control. The Statement of Responsibilities This statement identifies the officer who is responsible for the proper administration of the Board s financial affairs. The Income and Expenditure Account This statement shows the gross expenditure, income and net expenditure on the major activities for which the Board is responsible and compares that cost with the finance provided by the local rate payer and others. The Statement on Movement of Reserves This statement shows the changes in reserves during the reporting period. The Balance Sheet This statement is fundamental to the understanding of the Board s financial position at the year end. It shows the balances and reserves at the Board s disposal; and the fixed and net current assets employed in its operation, together with summarised information on the fixed assets held. The statement also includes assets and liabilities of the Board. Summary of Financial Performance The Board s financial position has significantly improved this year: 1. Profitability: an operating surplus of 147,053 was achieved, which represents 12.2% of turnover, without reducing output in terms of length of watercourse maintained. This is largely due to increased productivity because the same amount of work has been delivered throughout the year without using contractors. 2. Debt: long term borrowing has reduced from 98,415 to 76,086 (22.7%). 3. Cash: cash surpluses have increased from 108,320 to 535,539 (394.4%), largely due to collecting capital grant on approved schemes more quickly. 4. Liquidity: cash flow has improved - Debtors/Prepayments have reduced from 231,706 to 68, %) and Creditors have remained at similar levels. This is due to more effective debt collection. 5. Capital: the Net Book Value of Fixed Assets (Land and Buildings class) has been introduced to reflect the Board s part ownership of the group s central office in King s Lynn (10.29% of 500,000). 2

5 The Annual Governance Statement We acknowledge as the members of the Broads (2006) Internal Drainage Board our responsibility for ensuring that there is a sound system of internal control, including the preparation of the Statement of Accounts, and confirm, to the best of our knowledge and belief, with respect to the Board s statement of accounts for the year ended 31 March 2009, that: 1. We have approved the Statement of Accounts which has been prepared in accordance with the requirements of the Accounts and Audit Regulations and proper practices. 2. We have maintained an adequate system of internal control, including measures designed to prevent and detect fraud and corruption, and reviewed its effectiveness. 3. We have taken all reasonable steps to assure ourselves that there are no matters of actual or potential non-compliance with laws, regulations and codes of practice which could have a significant financial effect on the ability of the board to conduct its business or on its finances. 4. We have provided proper opportunity during the year for the exercise of electors rights in accordance with the requirements of the Accounts and Audit Regulations. 5. We have carried out an assessment of the risks facing the Board and taken appropriate steps to manage those risks, including the introduction of internal controls and/or external insurance cover where required. 6. We have maintained throughout the year an adequate and effective system of internal audit of the board s accounting records and control systems and carried out a review of its effectiveness. 7. We have taken appropriate action on all matters raised in previous reports from the internal and external audit. 8. We have considered whether any litigation, liabilities or commitments, events or transactions, occurring either during or after the year-end, have a financial impact on the board and where appropriate have included them in the Statement of Accounts. o* Yes This annual governance statement is approved by the Board and recorded as a Board minute on the 18 January Signed on behalf of Broads (2006) IDB: Signed by Chairman: H G Cator Date 18 January 2010 Signed by Chief Executive: P J Camamile D Date 18 January

6 MM/YYYY SIGNATURE REQUIRED DD/MM/YYYY R NAME HERE Statement of Responsibilities for the Statement of Accounts The Board 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 the Board that officer is the Chief Executive Officer. To manage its affairs to secure economic efficient and effective use of its resources and safeguard its assets The Chief Executive Officer s Responsibilities: The Chief Executive Officer is responsible for the preparation of the Board s Statement of Accounts which is required to present a true and fair view of the financial position of the Board at the accounting date and its income and expenditure for the year ended 31 March In preparing this statement of accounts, the Chief Executive Officer has: selected suitable accounting policies and then applied them consistently; made judgements and estimates that were reasonable and prudent; compiled the accounts in accordance with the Financial Reporting Standard for Smaller Entities 2007 issued by the Accounting Standards Board (other than accounting for Infrastructure Assets) and had regard to the guidance published by the Association of Drainage Authorities on Accounting for smaller IDBs; applied the accounting concept of a going concern by assuming that the IDB will continue to operate for the foreseeable future. The Chief Executive Officer has: kept proper accounting records which were up to date; taken reasonable steps for the prevention and detection of fraud and other irregularities. Certificate of the Chief Executive Officer This Statement of Accounts is that upon which the auditor should enter his certificate and opinion. It provides a true and fair view of the financial position of the Board at 31 March 2009 and its income and expenditure for the year then ended. Name: Designation: P J Camamile Chief Executive Officer Date: 18 January

7 BROADS (2006) IDB INCOME AND EXPENDITURE ACCOUNT FOR YEAR ENDED 31 MARCH /08 INCOME 2008/09 Notes 226,190 Drainage Rates 205, ,908 Special Levies on Councils 468, ,990 Grants Applied 264, ,301 Rental Income 1,936 30,075 Income From Rechargeable Works 30, ,138 Highland Water Contribution 230,533 7,789 Other Income ,391 Total Income for the Year 1,201, /08 EXPENDITURE 2008/09 Notes 150,636 Capital Works 323, ,084 Environment Agency Precept 76, ,066 Maintenance Works 593, ,026 Administration Charges 48,445 4,5,13 30,075 Cost of Rechargeable Works 27, Other Expenses 0 25,662 Net Surplus/Deficit on Operating Accounts -14, ,049,505 Total Expenditure for the Year 1,053,905 0 Exceptional Items - Loss on Sale of Fixed Assets 975 (204,114) Net Operating (Surplus)/Deficit for the Year (147,053) 5

8 BROADS (2006) INTERNAL DRAINAGE BOARD STATEMENT OF MOVEMENT ON THE GENERAL RESERVE 2008/ / /09 Surplus for the year as per Income and Expenditure Account 204,114 (147,053) Transfer to General Reserve -81,321 0 Transfer from General Reserve 0 91,808 Contribution to General Reserve 122,793 (55,245) Opening Reserve (265,659) (142,866) Closing Reserve (142,866) (198,111) STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 2007/ /09 Surplus/Deficit for the year as per Income and Expenditure Account 204,114 (147,053) Revaluation Gains During the Year (51,450) 0 Total Recognised Gains 152,664 (147,053) 6

9 BROADS (2006) IDB BALANCE SHEET AS AT 31 MARCH / /09 Note Fixed Assets 79,429 Non-operational Assets 64, ,450 Buildings 50, ,373 Vehicles and Plant 75, , ,843 Current Assets 231,707 Debtors and Prepayments 68, ,320 Cash at Bank and in Hand 535, , ,730 Current Liabilities 193,447 Creditors and Receipts in Advance 184,109 10,11 193, , ,580 Net Current Assets 419,621 98,415 Long Term Borrowing 76, ,417 NET ASSETS 534, /08 Reserves 2008/09 Note 142,866 General Reserve 198, Capital Works Reserve 91, ,101 Development Reserve 193, ,450 Revaluation Reserve 51, , ,378 7

10 NOTES TO THE ACCOUNTS 1 STATEMENT OF ACCOUNTING POLICIES General a. This Statement of Accounts has been prepared in accordance with the Financial Reporting Standard for Smaller Entities 2007 (FRSSE) issued by the Accounting Standards Board. In preparing the statements regard has been given to the Guidance published by the Association of Drainage Authorities. b. These accounts have been prepared in accordance with the following accounting concepts Accruals Prudence Going Concern Fixed Assets a. Fixed Assets are recognised as expenditure on the acquisition, creation or enhancement of fixed assets. Assets with estimated useful lives in excess of one year and a value of 5000 or above are capitalised on an accruals basis in the accounts. b. All fixed Assets are valued on the following basis Land and buildings are included in the balance sheet at lower of net current replacement cost and net realisable value, net of accumulated depreciation. Net current replacement cost assessed as: non-specialised operational properties - existing use value specialised operational properties - depreciated replacement cost Vehicles, plant and equipment are included at cost less depreciation c. Disposals are written off at cost less depreciation. Any surplus/deficit arising is charged/credited to Exceptional items in the Income and Expenditure Account. d. Depreciation has been provided for using the straight line method. The useful lives of the various assets held on the Asset Register are as follows: Motor vehicles and Equipment: 4 years Excavators and Plant: 7 years Fixed Pumping Plant: 20 years Land: no depreciation Buildings: Period of Useful Life Stocks and Work in Progress Stocks and work in progress are valued at the lower of cost or net realisable value. Government Grants and Subsidies Government grants and contributions have been credited to the income and expenditure account on an accruals basis. 8

11 Pensions Pension costs are accounted for on a defined contribution basis as it is not possible to identify the share of assets belonging to the Board in the Norfolk County Council Pension Fund. Taxation Drainage Boards are exempt from Income, Corporation and Capital Gains Taxes. Value Added Tax is included in the accounts only to the extent that it is irrecoverable. Exceptional Items, Extraordinary Items and Prior Year Adjustments There are no material exceptional or extraordinary items to disclose in the accounts. Profits or losses on the disposal of fixed assets are shown separately on the face of the Income and Expenditure Account prior to Operating surplus/deficit. Income Recognition Income is recognised on the following basis Drainage Rates - 1st April Other Debtors - On completion of supply of goods or services Rents - 1st April Finance Leases Finance leases are held on a number of items of plant and equipment. Interest on Finance leases is charged to the Plant Operations Account. General Reserve The Association of Drainage Authorities guidance recommends that the General Reserve held by the Board is 20% to 25% of estimated net expenditure. Year end surplus and deficits are taken to the General Reserve. Development Reserve The purpose of this Reserve is to reduce the impact on drainage rates from development that takes place in the area. The Board charges developers a standard rate per impermeable hectare for agricultural land which is developed and becomes a hard standing area, such as housing, roadways etc. The money is credited to this Reserve and then used to reduce the gross cost of capital work needed to cater for the additional flows arising from such development. The income for this reserve therefore comes exclusively from developers and is used to fund in part improvement works that are necessary because of development. Revaluation Reserve Gains and losses arising on the revaluation of assets that have been recognised in the Statement of Total Recognised Gains and Losses are credited or debited to the Revaluation Reserve. This Reserve cannot be used for any other purpose. 9

12 2 SPECIAL LEVIES ON COUNCILS 2007/ /09 North Norfolk District Council 152, ,437 South Norfolk District Council 819 1,871 Broadland District Council 96, ,018 Great Yarmouth District Council 99, , , ,853 3 GRANTS RECEIVED FROM EA Rate of Grant 2007/ /09 Halvergate 100% 45,861 0 Hickling Broad SSSI Scheme 100% 43, ,548 Somerton North Pumping Station Replacement 100% 3,382 1,464 Upton Broads WLMP Implementation 100% 2,727 14,990 Calthorpe Broads SSSI WLMP 100% 5,075 40,018 Stubb Pumping Station 45% 16,563 20,882 Sutton Village 45% 2,517 0 Five Mile Pumping Station 45% 0 12,150 Hermitage Pumping Station 45% 0 26,968 Thurne Pumping Station 45% 0 29, , ,384 4 AUDIT FEES 2007/ /09 Fees paid to Auditors 4,500 5,717 5 PENSION COSTS AND PENSION FUND INFORMATION The Board pays an employer's contribution of employee's pensionable pay into the Local Government Pension Scheme, as administered by Norfolk County Council. The employer's rate at 31st March 2009 is 16.50% for 3 employees (of employee's pensionable remuneration). The Scheme is treated on a defined contribution basis for FRS 17. Employers Pension costs for 2008/09 are 10,800 (2007/08 8,581). A copy of the Pension Fund Report can be obtained from the Norfolk County Council. 6 OPERATING ACCOUNTS The Board operates a Plant Operations Account and a Labour Operations Account. The individual position of these accounts at the year end was as follows Plant Labour Total Income Recharged to jobs (54,338) (147,173) (201,511) Expenditure 47, , ,764 Total as per accounts (7,265) (7,482) (14,747) 10

13 7 TANGIBLE FIXED ASSETS Buildings Non-operational Vehicle & Plant Total COST Opening Balance as at 1 April , , , ,199 Revaluations Disposals ,884-10,884 Additions As at 31st March , , , ,315 DEPRECIATION Opening Balance as at 1 April ,627 33,320 62,947 Adjustments Disposals 0 0-2,409-2,409 Charge for Year 1,029 14,475 20,430 35,934 As at 31st March ,029 44,102 51,341 96,472 Net Book Value at 31/03/08 51,450 79, , ,252 Net Book Value at 31/03/09 50,421 64,954 75, ,843 The Board owns 10.29% of Kettlewell House, Kings Lynn. 8 DEBTORS AND PAYMENTS IN ADVANCE 2007/ /09 Drainage Rate Debtors 190 3,916 Trade Debtors 22,124 0 H M Revenues and Customs 57,764 25,128 Grant Aid Due 80,354 7,987 Prepayments 71,275 31, ,707 68,191 9 CASH AT BANK AND IN HAND 2007/ /09 Bank Current Account - Natwest 108, , , , CREDITORS AND RECEIPTS IN ADVANCE 2007/ /09 Trade Creditors 99,873 79,511 Other Taxation and Social Security 3,631 2,032 Payments received in advance 54,088 75,522 Finance Leases due in less than 12 months 23,423 13,739 Accruals 4,500 4,715 Loans Payable in less than 12 months 7,932 8, , , FINANCE LEASES The Board has the following finance leases with East Anglian Finance. All three items are capitalised under the Vehicles and Plant category in Fixed Assets. Capital Outstanding Daewoo Solar Excavator (Agreement W056939) 5,234 Daewoo Solar Excavator (Agreement W056476) 4,450 Ford Ranger AF07 ODV (Agreement W081931) 4,055 13,739 11

14 12 AMOUNTS OUTSTANDING MORE THAN 12 MONTHS 2007/ /09 Loans outstanding to PWLB 84,676 76,086 Finance Leases oustanding more than 12 months 13, ,415 76,086 The Board (Formerly Middle Bure) took out loan number on the 20th September 1996 with the Public Works Loan Board (PWLB) for the construction of Doles Pumping Station at South Walsham. Repayments are made in March and September annually. 13 TOTAL OF MEMBERS ALLOWANCES PAID DURING THE YEAR 2007/ /09 Chairmans Allowance RESERVES RESERVES Movements General Reserve Capital Works Reserve Development Reserve Revaluation Reserve TOTAL Opening Reserves 01/04/ , ,101 51, ,417 Surplus for the year ending 31/03/09 147, ,053 Contributions Received 109, ,158 Contributions Applied -5,250-5,250 Transfers between Reserves -91,808 91,808 0 Closing Reserves 01/04/ ,111 91, ,009 51, ,378 12

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