STATEMENT OF ACCOUNTS
FOR THE YEAR ENDED
31st MARCH 2013
Statement of Accounts 2012/13
BRECON BEACONS NATIONAL PARK AUTHORITY
STATEMENT OF ACCOUNTS 2012/13
EXPLANATORY FOREWORD
3
STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS
9
STATEMENT OF ACCOUNTING POLICIES
10
COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT
21
BALANCE SHEET
22
MOVEMENTS IN RESERVES STATEMENT
23
CASH FLOW STATEMENT
25
NOTES TO THE ACCOUNTS
26
APPENDIX 1: ALLOWANCES/SALARIES PAID TO AUTHORITY MEMBERS 2012/13
55
APPENDIX 2: GOVERNANCE STATEMENT
56
Independent Auditor’s report to the Members of Brecon Beacons National Park
Authority
74
2
Statement of Accounts 2012/13
EXPLANATORY FOREWORD
1.
INTRODUCTION
The Authority is required by law to produce an annual Statement of Accounts in
accordance with proper accounting practices as laid down by the Chartered Institute
of Public Finance and Accountancy (CIPFA) in its 2012/13 ‘Code of Practice on Local
Authority Accounting in the United Kingdom: A Statement of Recommended Practice’
and approved by the Accounting Standards Board.
This foreword provides a brief explanation of the more significant matters reported in
the accounts. Accounting statements are set out on later pages and consist of:A Statement of Accounting Policies - the basis upon which amounts have been
included in the accounts using accepted accounting principles.
The Core Financial Statements
o
The Comprehensive income and Expenditure Statement - the income
and expenditure during the financial year, accompanied by notes which explain
the figures in greater detail as required by the CIPFA code of practice.
o
The Balance Sheet - the assets and liabilities, cash held and amounts set aside
in reserves at the financial year-end. Notes are provided to give further details of
specific balances where required by the CIPFA code of practice.
o
The Statement of Movements in Reserves – shows the total gains and
losses to the Authority during the year, including the effect of actuarial gains and
losses on the pension fund and valuation gains and losses on fixed assets.
o
The Cash Flow Statement - expenditure and income for the financial year,
excluding all amounts owed or receivable. Further explanation is provided in the
notes to the statement.
The authorisation date of the Statement is 30 June 2013. Significant events after the
Balance Sheet date and up to 30 September 2013 have been taken into account in
preparing the Statement. The Statement is audited by the Wales Audit Office and a
copy of the auditor’s report is published with the Statement when this becomes
available on completion of the audit. The Authority is also required to produce a
Governance Statement with its accounts. This has been included in Appendix 2. For
further information and explanation of items in this document, please contact the
Finance Manager on 01874 620467 or email finance.manager@breconbeacons.org.
2.
ESTABLISHMENT
AUTHORITY
OF
BRECON
BEACONS
NATIONAL
PARK
The Brecon Beacons National Park Authority (the Authority) covers 520 square miles
and is one of three National Parks in Wales. The Authority became an independent
Local Authority with effect from 1st April 1996 and has two statutory purposes and
1duty:
Purposes:
o
To conserve and enhance the natural beauty, wildlife and cultural heritage of the
National Park.
3
Statement of Accounts 2012/13
o
To promote opportunities for public enjoyment and understanding of the special
qualities of the National Park.
Duty:
o
To foster the economic and social well-being of communities living within the
National Park.
The Authority is the statutory Local Planning Authority for the area and is responsible
for preparation of the Unitary Development Plan and determining planning
applications.
3.
INCOME AND EXPENDITURE
The gross cost to the Authority in relation to the provision of services as reported to
members for Management purposes during the year was £6,683,000. The table below
sets out the sources of funding and shows that £33,000 was transferred from General
Reserves at the year end. In addition £10,000 net was transferred to Earmarked
Reserves.
The National Park Grant is paid by the Welsh Government in response to annual
funding bids. The Welsh Government also determines the amount that can be raised
by a levy on the constituent Unitary Authorities.
National Park Grant
National Park Levy
Grants and Contributions
Fees, Charges and other Service income
Interest Receivable
Gross Revenue Funding
Employee Expenses
Other Service Expenses
Total Expenditure
Transfers to/from Earmarked Reserve
2011/12
£000
2011/12
%
2012/13
£000
2012/13
%
3,215
1,072
1,139
1,041
5
6,472
50
16
18
16
0
100
3402
1,134
895
1,080
13
6,524
52
17
14
17
0
100
2011/12
£000
2011/12
%
2012/13
£000
2012/13
%
3,696
2,607
6,303
(8)
59
41
100
3,785
2,762
6,547
10
58
42
100
Total Expenditure after net transfers
to/from Earmarked Reserves
6,295
6,557
Net cost/(income) of Services
(Contribution to/from General
Fund)
(177)
33
Annual grant income from the Welsh Government in respect of the Sustainable
Development Fund has, from 1 April 2012, been subsumed within the National Park
Grant and Levy. The grant was £208,000 in the previous year (2011/12).
Locally generated income and specific grants are allocated to individual services and
are offset against the expenditure on those headings to arrive at the total net budgets
and costs as reported to those responsible for management of the Authority. The
table below shows how the net cost of services is derived from gross income and
expenditure (see also Note 29 for a reconciliation of amounts reported to
4
Statement of Accounts 2012/13
management on a departmental basis to the totals reported on the Comprehensive
Income and Expenditure Statement.
The net costs for each service in the Comprehensive Income and Expenditure
Statement include depreciation (the cost of wear and tear on buildings, equipment,
etc.) and recharges for internal support service costs.
Adjustments are also made for pension costs in accordance with the International
Accounting Standard 19: Retirement Benefits (IAS19). These technical adjustments are
intended to bring the Authority’s accounts into line with UK Generally Accepted
Accounting Policies. They indicate the full cost to the Authority in the relevant
financial year of meeting all future commitments to its current and former employees
under the Local Government Pension Scheme.
These adjustments do not affect the net revenue spend of the Authority paid for by
the Welsh Assembly Government and local taxpayers. For a full explanation of the
basis for the charges under IAS 19, see Note 48. The adjustments are not included in
the budgeted figures as they have no impact on the cost of the Authority’s operations
for management purposes.
The IAS19 adjustments have a substantial impact on the assets of the Authority as
recorded in the Balance Sheet, resulting in overall negative net assets of some £1.2m.
If Pension Fund Liability is excluded from the figures, net assets would be worth over
£5.6m.
Significant developments affecting the financial position of the Authority
In 2012/13 the general economic climate contributed to a reduction in visitor receipts
but the Authority was able to generate substantial additional grant funding for both this
and future years to fund sustainable tourism and access improvement projects.
Income from planning fees exceeded the estimate. In anticipation of future loss of
grants and contributions from other public sector bodies in the UK, the Authority has
maintained its general and earmarked reserves to allow projects to continue where
possible. The Authority continues to receive cash-limited funding from the Welsh
Government which it seeks to deploy in more efficient and effective ways to meet its
statutory purposes and Assembly priorities. The use of volunteers and communitybased projects as well as joint working and sharing services help to make funding go
further.
The actuarial assessment of the cost of the Authority’s commitments under the Local
Government Pension Scheme continues to be one of the largest determinants of the
Authority’s apparent financial position in the Statement of Accounts. Global financial
uncertainties and regulatory changes impact both on the relative values of the
Authority’s share of the Powys Pension Fund’s assets and on its liabilities to future
pensioners. Also affecting the balance sheet was the 5-yearly revaluation of the
Authority’s property carried out by an external valuer, which produced a net increase
in the value of Fixed Assets in the Balance Sheet by £1.1m.
A simplified comparison between the budgeted and actual income and expenditure
account by service for 2012/13 is produced below and shows that the Authority
planned to withdraw some £301,000 from its General Reserve at the year-end
whereas in fact just over £33,000 was withdrawn from the Reserve representing an
under-spend of £268,000. The service headings are the same as those used by the
other two Welsh National Park Authorities and are used to enable comparisons
between all three Authorities.
In the table below support services costs and departmental management costs have
been fully recharged to services and to enable comparisons between the revised
budget and the outturn, year-end recharges for capital charges (depreciation) and
actuarially assessed pension scheme costs (in accordance with international accounting
5
Statement of Accounts 2012/13
standards) have been applied to the budget figures to give an adjusted total. For a
comparison with amounts reported to management, please see Note 29 in the
Statement of Accounts.
Summary of principal variances between 2012/13 budget and outturn analysed
by Comprehensive Income and Expenditure Statement headings
Net Service Costs
Conservation of the Natural Environment
Conservation of the Cultural Heritage
Planning – Development Control
Planning Policy & Communities
Promoting Understanding
Recreation Management & Transport
Rangers, Estates & Volunteers
Democratic Representation & Management
Non-Distributable Costs (Pensions Past Service Costs)
Net Cost of Services
Remove Pensions Adjustments included in the Statement of
Accounts in accordance with international accounting standards
Remove changes to value of accumulated employee benefits
Remove Capital charges included in the Statement of Accounts in
accordance with international accounting standards
Adjusted net cost of Services
Interest received
National Park Grant (Welsh Assembly Government)
National Park Levy (Constituent Authorities)
Transfers to/(from) earmarked reserves
Deficit (Surplus) for the year transferred to/from the
General Reserve
2012/13
Adjusted
Budget
2012/13
Out-turn
£000
£000
192
109
921
863
1,255
371
822
713
0
177
101
919
719
1,162
333
740
636
0
5,246
2012/13
Variance
against
adjusted
Budget
£000
(15)
(8)
(2)
(144)
(93)
(38)
(82
(77)
0
4,787
459
8
8
(6)
(6)
(216)
(216)
0
5,030
4,573
(457)
(2)
(3,402)
(1,135)
(190)
(13)
(3,402)
(1,135)
10
(11)
0
0
200
(4,729)
(4,540)
189
301
33
(268)
Significant Variances as reported to the Members of the Authority
Chief Executives Office
The Legal Services budget included a planned expenditure relating to legal proceedings which will
continue into 2013/14. Not all the expenditure has yet taken place, producing a net underspend
of some £54,000. In IT, the delays on the Pathways App project which will be carried over into
2013/14 and an overstated estimate for software licensing and training produced an under-spend
of £29,000. The Communications budget is under-spent by £18,000 due to delays in the
implementation of a new destination website. Savings on cleaning and building service charges
have caused an under-spend in Admin Buildings of £18,000. Finally, the Democratic
Representation and Management budget has seen a number of under-spends on Member travel,
Standards Committee expenses, Member training and a Scrutiny Officer post.
6
Statement of Accounts 2012/13
Countryside and Community
Additional filming fee income and an internal transfer to fund maintenance work on the Taff
Cycle Trail from leaflet sales were not budgeted. The cost of the Apprentice Warden scheme
was fully budgeted in 2012/13 but as the scheme did not start until part way through the year, a
net amount of some £6000 will be carried forward to 2013/14. Further savings were made inyear to help fund the purchase of mowing equipment in early 2013/14; a budget carry-forward
request has been approved.
Budget underspends in SustainableTourism EU-funded projects have arisen because matching
funds and agreed project partner contributions have been provided in advance of expenditure.
For the Rural Alliances project, the total surplus in the first year will be earmarked for use in
years 2 and 3 and will be drawn from earmarked reserves at that stage, as has been the case for
the Collabor8 project. Ecology staffing has been below strength for a number of months during
2012/13 and this has resulted in an underspend of some £16,000. The Community Development
Officer post seconded to TGV was covered for part of the year at a lower grade and the income
invoiced was not budgeted. This resulted in a total saving of some £18,000.
The Information Centres have under-spent for the year as a whole, the principal underspend of
£10,500 is at Abergavenny and relates to staffing. The National Park Visitor Centre and Tea
Room continued to be over-spent; by a total of £48,000. Income has been £24,000 below target
overall and the cost of covering leave and other staff absences increased costs over the budget
by £24,000.
The Education budget is underspent by £12,000 largely due to increased income received
towards the end of the year from the Education Workshop, increased school visits and receipts
from the Park Society and Vincent Wildlife Trust not expected before 31 March 2013. Staffing
budgets for employer’s on-costs were over-budgeted.
Planning and Development Control
The Local Development Plan timetable, essentially determined by the Planning Inspector, has
moved partly into 2013/14. Overall, some £72,000 of the expected costs will fall into 2013/14
and a corresponding adjustment has been made to the planned transfer from the earmarked
reserve for enquiry costs. Although there has been an over-spend in Building Conservation
staffing due to absence cover, this has been offset by an underspend on Historic Building and
Town Scheme Grants. A number of projects are in train but were not completed by 31 March.
In Development Control, the budget for planning fees was revised upwards during the year but
was still exceeded by actual income by £40,000. There was an overspend in staffing which was
offset by increased fees and charges for processing Powys Council’s planning applications and
pre-application advice. Planning Administration has underspent by some £28,000, largely due to
a staffing underspend. In Enforcement an over-spend arose from a change of personnel and
under-budgeted employers pension contributions.
Interest income and Earmarked Reserves
Earmarked reserves have been set up to help the Authority set aside contingency funds to meet
future commitments, for example for the LDP enquiry, tourism and transport projects where
external funding is expected to decline due to public sector funding cuts, and multi-year EU
funded projects where funding surpluses early in the life of the projects are needed to fund
expected shortfalls on completion. Income from a fixed-term bond was not included in the
estimate and has increased earned interest by £11,000 against the budget. Transfers from
reserves have been reduced for Beacons Bus and the LDP and the balances will be held to fund
expenditure in 2013/14. In addition transfers to reserves have increased to manage the flow of
funding for the Sustainable Tourism EU-funded projects as noted above.
7
Statement of Accounts 2012/13
4)
CAPITAL EXPENDITURE
2012/13
Budget
£000
2012/13
Actual*
£000
Capital Expenditure
175
68
Less: Grants & Contributions
175
68
Less: Revenue Financing
0
0
Net Expenditure
0
0
‘* The Welsh Government capital grant of £117,000, a specific grant of £20,000 and the Rights of
Way Improvement funding of £72,000 were applied to fund the 2012/13 capital projects
programme and contribute to some projects managed within the revenue budget. However, a
proportion of the budgeted capital expenditure above is not treated as capital under accounting
rules and the de-minimis value set by the Authority of £10,000 in its accounting policies.
Non-qualifying expenditure and associated grant income totaling £100,000 have been transferred
to the Comprehensive Income and Expenditure Statement and appear as part of actual
expenditure and income for the year under the appropriate service heading. There is no impact
on the net revenue position as a result of this transfer. The final capital expenditure of the
Authority for the purposes of the Statement is £68,000 as per the table above.
Qualifying capital projects included the installation of audio-visual equipment for committee
meetings, and improvements to Rights of Way.
8
Statement of Accounts 2012/13
STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS
THE AUTHORITY’S RESPONSIBILITIES
The Authority is required to:o
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 Financial Officer (Section 151 Officer).
o
Manage its affairs to secure economic, efficient and effective use of resources and
safeguard its assets.
o
Approve the Statement of Accounts.
THE CHIEF FINANCIAL OFFICER’S RESPONSIBILITIES
The Chief Financial Officer is responsible for the preparation of the Authority’s Statement of
Accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of
Practice on Local Authority Accounting in the United Kingdom.
In preparing the Statement of Accounts, the Chief Financial Officer has:o
Selected suitable accounting policies and then applied them consistently;
o
Made judgements and estimates that were reasonable and prudent;
o
Complied with the Code of Practice.
The Chief Financial Officer has also:
o
Kept proper accounting records which were up to date;
o
Taken reasonable steps for the prevention and detection of fraud and other
irregularities.
The Statement of Accounts gives a true and fair view of the financial position of the Authority at
the accounting date and its income and expenditure for the year ended 31 March 2013. To
comply with the Accounts and Audit Regulations 2005 as amended by the Accounts and Audit
(Wales) Amendment) Regulations 2010, the Chief Financial Officer is required to re-certify the
Statement immediately before their adoption by the Authority and after the completion of the
audit, while the Chairman certifies approval of the audited Statement by the Authority.
J Emlyn Watkin C.P.F.A
Chief Financial Officer
Brecon Beacons National Park Authority
Date: 28/6/13
J Emlyn Watkin C.P.F.A
Chief Financial Officer
Brecon Beacons National Park Authority
Date: 30/9/13
Mrs Julie James
Chairman
Brecon Beacons National Park Authority
Date: 30/9/13
9
Statement of Accounts 2012/13
STATEMENT OF ACCOUNTING POLICIES
1.1 GENERAL PRINCIPLES
The purpose of the Statement of Accounting Policies is to explain the calculation bases
of the figures in the accounts.
The accounts have been prepared in accordance with:

The current Code of Practice on Local Authority Accounting in the United Kingdom
(the Code)

The guidance notes issued by CIPFA on the application of International Financial
Reporting Standards (IFRS’s); International Financial Reporting Standards (IAS’s);
Statements of Recommended Practice (SORP)

The Local Government Finance Act 1982

Best Value Accounting Code of Practice

The Accounting
comprehensibility.

The basic accounting concepts of materiality, going concern, matching, consistency,
primacy of legislative requirements, prudence and substance over form. The concept
of the primacy of legislative requirements is given precedence over other concepts
where there is a conflict.

1.2
principles
of
relevance,
reliability,
comparability
and
ACCRUALS OF INCOME AND EXPENDITURE
Activity is accounted for in the year in which it occurs, not simply when cash payments
are made or received. In particular:

Revenue from the sales of goods is recognised when the Authority transfers
the significant risks and rewards of ownership to the purchaser and it is
probable that economic benefits or service potential associated with the
transaction will flow to the Authority.

Revenue from the provision of services is recognised when the Authority can
measure reliably the percentage of completion of the transaction and it is
probable that economic benefits or service potential associated with the
transaction will flow to the Authority.

Supplies are recorded as expenditure when they are consumed – where there
is a gap between the date supplies are received and their consumption, they are
carried as inventories on the Balance Sheet.

Where revenue and expenditure have been recognised but cash has not been
received or paid, a debtor or creditor for the relevant amount is recorded in
the Balance Sheet. Where debts may not be settled, the balance of debtors is
reduced and a charge is made to the expenditure and income account for the
income that might not be collected.
1.3 CASH AND CASH EQUIVALENTS
Cash is represented by cash in hand and deposits with financial institutions repayable
without penalty on notice of not more than 24 hours. Cash equivalents are investments
that mature within 3 months or less from the date of acquisition and that are readily
convertible to known amounts of cash with insignificant risk of change in value.
In the Cash Flow Statement, cash and cash equivalents are shown net of bank overdrafts
that are repayable on demand and form an integral part of the Authority’s cash
management.
10
Statement of Accounts 2012/13
1.4 PRIOR PERIOD ADJUSTMENTS, CHANGES IN ACCOUNTING
POLICIES AND ESTIMATES AND ERRORS
Prior period adjustments may arise as a result of a change in accounting policies or to
correct a material error. Changes in accounting estimates are accounted for
retrospectively, ie in the current and future years affected by the change and do not give
rise to a prior period adjustment.
Changes in accounting policies are only made when required by proper accounting
practices or the change provides more reliable or relevant information about the effect of
transactions, other events and conditions on the Authority’s financial position or financial
performance.
Where a change is made, it is applied retrospectively (unless stated otherwise) by adjusting
opening balances and comparative amounts for the prior period as if the new policy had
always been applied.
Material errors discovered in prior period figures are corrected retrospectively by
amending opening balances and comparative amounts for the prior period.
1.5 CHARGES TO REVENUE FOR NON-CURRENT ASSETS
Services, and support services are debited with the following amounts to record the cost
of holding fixed assets during the year:



Depreciation attributable to the assets used by the relevant service
Revaluation and impairment losses on assets used by the service where there are
no accumulated gains in the revaluation reserve against which the losses can be
written off
Amortisation of intangible fixed assets attributable to the service
The Authority is not required to fund depreciation, revaluations and impairment losses or
amortisations from the revenue grant or levies. As the Authority is debt-free it is not
required to make an annual contribution from its Income and Expenditure Account to
reduce its overall borrowing requirement as would otherwise be the case.
1.6 EMPLOYEE BENEFITS
Short-term employee benefits are those due to be settled within 12 months of the yearend. They include such benefits as wages and salaries, paid annual leave and paid sick leave,
bonuses and non-monetary benefits (eg cars) for current employees and are recognised as
an expense for services in the year in which employees render service to the Authority. An
accrual is made for the cost of holiday entitlements (or any form of leave, eg time off in
lieu) earned by employees but not taken before the year-end which employees can carry
forward into the next financial year. The accrual is made at the wage and salary rates
applicable in the following accounting year, being the period in which the employee takes
the benefit. The accrual is charged to Surplus or Deficit on the Provision of Services, but
then reversed out through the Movement in Reserves Statement so that holiday benefits
are charged to revenue in the financial year in which the holiday absence occurs.
Termination benefits are amounts payable as a result of a decision by the Authority to
terminate an officer’s employment before the normal retirement date or an officer’s
decision to accept voluntary redundancy and are charged on an accruals basis to the NonDistributed Costs line in the Comprehensive Income and Expenditure Statement when the
Authority is demonstrably committed to the termination of the employment of an officer
or group of officers or making an offer to encourage voluntary redundancy.
11
Statement of Accounts 2012/13
Where termination benefits involve the enhancement of pensions, statutory provision
require the Income and Expenditure Account to be charged with the amount payable to
the pension fund or pensioner in the year, not the amount calculated according to the
relevant accounting standards. In the Movement in Reserves Statement, appropriation s
are required to and from the Pensions Reserve to remove the notional debits and credits
for pension enhancement termination benefits and replace them with debits for cash paid
to the pension fund and pensioners and any such amounts payable but unpaid at the year
end.
Employees of the Authority are members of the Local Government Pension Scheme,
administered by Powys County Council. The scheme provides defined benefits to
members (retirement lump sums and pensions) earned as employees work for the
Authority and is accounted for as a defined benefits scheme.








The liabilities of the Powys Pension Fund attributable to the Authority are included in the
Balance Sheet on an actuarial basis using the projected unit method – ie an assessment of
the future payments that will be made in relation to retirements benefits earned to date
by employees, based on assumptions about mortality rates, employee turnover rates, etc,
and projections of earnings for current employees.
Liabilities are discounted to their value at current prices, using a discount rate of 5.4%
(based on the indicative rate of return on high quality corporate bonds.)
The assets of the Powys pension fund attributable to the Authority are included in the
Balance Sheet at their fair value.
quoted securities – current bid price
unquoted securities – professional estimate
unitised securities – current bid price
property – market value
The change in the net pensions liability is analysed into 7 components:
 current service cost – the increase in liabilities as a result of years of service
earned this year – allocated in the Comprehensive Income and Expenditure
Statement to the services for which the employees worked
 past service cost – the increase in liabilities arising from current year decisions
whose effect relates to years of service earned in earlier years – debited to the
Surplus or Deficit on the Provision of Services in the Comprehensive Income and
Expenditure Statement as part of Non Distributed Costs
 interest cost – the expected increase in the present value of liabilities during the
year as they move one year closer to being paid – debited to the Financing and
Investment Income and Expenditure line in the Comprehensive Income and
Expenditure Statement
 expected return on assets – the annual investment return on the fund assets
attributable to the Authority, based on an average of the expected long-term
return – credited to the Financing and Investment Income and Expenditure line in
the Comprehensive Income and Expenditure Statement
 gains or losses on settlements and curtailments – the result of actions to relieve
the Authority of liabilities or events that reduce the expected future service or
accrual of benefits of employees – debited or credited to the Surplus or Deficit on
the Provision of Services in the Comprehensive Income and Expenditure
Statement as part of Non-Distributed Costs
 actuarial gains and losses – changes in the net pensions liability that arise because
events have not coincided with assumptions made at the last actuarial valuation or
because the actuaries have updated their assumptions – debited to the Pensions
Reserve
12
Statement of Accounts 2012/13

contributions paid to the Powys pension fund – cash paid as employer’s
contributions to the pension fund in settlement of liabilities; not accounted for as
an expense.
In relation to retirement benefits, statutory provisions require the General Fund balance to
be charged with the amount payable by the Authority to the pension fund or directly to
pensioners in the year, not the amount calculated according to the relevant accounting
standards. In the Movement in Reserves Statement, this means that there are
appropriations to and from the Pensions Reserve to remove the notional debits and credits
for retirement benefits and replace them with debits for the cash paid to the pension fund
and pensioners and any such amounts payable but unpaid at the year-end. The negative
balance that arises on the Pensions Reserve thereby measures the beneficial impact to the
General Fund of being required to account for retirement benefits on the basis of cash
flows rather than as benefits are earned by employees.
A revised International Accounting Standard 19 will come into force for accounting periods
beginning on or after 1 January 2013. If this revised IAS 19 were adopted for the
accounting period ending 31 March 2013, it would increase the expense recognised in the
Comprehensive Income and Expenditure Statement for the funded benefits from £620,000
to £800,000. There would be no effect on the balance sheet.
The Authority also has restricted powers to make discretionary awards of retirement
benefits in the event of early retirements. Any liabilities estimated to arise as a result of an
award to any member of staff are accrued in the year of the decision to make the award
and accounted for using the same policies as are applied to the Local Government Pension
Scheme.
1.7 EVENTS AFTER THE REPORTING PERIOD
Events after the Balance Sheet date are those events, both favourable and unfavourable,
that occur between the end of the reporting period and the date when the Statement of
Accounts is authorised for issue. Two types of events can be identified:
 Those that provide evidence of conditions that existed at the end of the reporting period
– the Statement of Accounts is adjusted to reflect such events
 Those that are indicative of conditions that arose after the reporting period – the
Statement of Accounts is not adjusted to reflect such events, but where a category of
events would have a material effect, disclosure is made in the notes of the nature of the
events and their estimated financial effect.
Events taking place after the date of authorisation for issue are not reflected in the
Statement of Accounts.
1.8 FOREIGN CURRENCY TRANSLATION
Where the Authority has entered into a transaction denominated in a foreign currency, the
transaction is converted into sterling at the exchange rate applicable on the date the
transaction was effective. Where amounts in foreign currency are outstanding at the yearend, they are reconverted at the spot exchange rate at 31 March. Resulting gains or losses
are recognised in the Financing and Investment Income and Expenditure line in the
Comprehensive Income and Expenditure Statement.
1.9 GOVERNMENT GRANTS AND CONTRIBUTIONS
Whether paid on account, by instalments or in arrears, government grants and third party
contributions and donations are recognised as due to the Authority when there is
13
Statement of Accounts 2012/13
reasonable assurance that the Authority will comply with the conditions attached to the
payments, and the grants or contributions will be received.
Amounts recognised as due to the Authority are not credited to the Comprehensive
Income and Expenditure Statement until conditions attached to the grant or contribution
have been satisfied. Conditions are stipulations that specify that the future economic
benefits or service potential embodied in the asset acquired using the grant or contribution
are required to be consumed by the recipient as specified, or future economic benefits or
service potential must be returned to the transferor.
Monies advanced as grants and contributions for which conditions have not been satisfied
are carried in the Balance Sheet as creditors. When conditions are satisfied, the grant or
contribution is credited to the relevant service line (attributable revenue grants and
contributions) or Taxation and Non-Specific Grant Income (non-ringfenced revenue grants
and all capital grants) in the Comprehensive Income and Expenditure Statement.
Where capital grants are credited to the Comprehensive Income and Expenditure
Statement, they are reversed out of the General Fund Balance in the Movement in
Reserves Statement. Where the grant has yet to be used to finance capital expenditure, it
is posted to the Capital Grants Unapplied reserve. Where it has been applied, it is posted
to the Capital Adjustment Account. Amounts in the Capital Grants Unapplied reserve are
transferred to the Capital Adjustment Account once they have been applied to fund capital
expenditure.
1.10 INTANGIBLE ASSETS
Expenditure on non-monetary assets that do not have physical substance but are
controlled by the Authority as a result of past events (eg software licences) is
capitalised when it is expected that future economic benefits or service potential will
flow from the intangible asset to the Authority.
Intangible assets are measured initially at cost and carried at amortised cost. The
depreciable amount of an intangible asset is amortised over its useful life to the relevant
service line(s) in the Comprehensive Income and Expenditure Statement. An asset is
tested for impairment whenever there is an indication that the asset might be impaired –
any losses recognised are posted to the relevant service line(s) in the Comprehensive
Income and Expenditure Statement. Any gain or loss arising on the disposal or
abandonment of an intangible asset is posted to the Other Operating Expenditure line in
the Comprehensive Income and Expenditure Statement.
Where expenditure on intangible assets qualifies as capital expenditure for statutory
purposes, amortisation, impairment losses and disposal gains and losses are not permitted
to have an impact on the General Reserve. The gains and losses are therefore reversed out
of the General Reserve in the Movement in Reserves Statement and posted to the Capital
Adjustment Account and (for any sale proceeds greater than £10,000) the Capital Receipts
Reserve.
1.11 INVENTORIES
These have been included in the accounts at cost. This is a departure from the
requirements of the CIFPA Code of Practice, which require stocks to be shown at the
lower of actual cost or net realisable value, whichever is the lower. The difference is
not considered to be material.
1.12 LEASES
Leases are classified as finance leases where the terms of the lease transfer substantially all
the risks and rewards incidental to ownership of the property, plant or equipment from the
14
Statement of Accounts 2012/13
lessor to the lessee. All other leases are classed as operating leases. The Authority
currently holds no assets under finance leases.
Rentals paid under operating leases are charged to the Comprehensive Income and
Expenditure Statement as an expense of the services benefitting from use of the leased
property, plant or equipment. Charges are made on a straight-line basis over the life of the
lease, even if this does not match the pattern of payments (eg there is a rent-free period at
the commencement of the lease).
Where the Authority grants an operating lease over a property or an item of plant or
equipment, the asset is retained in the Balance Sheet. Rental income is credited to the
Other Operating Expenditure line in the Comprehensive Income and Expenditure
Statement. Credits are made on a straight-line basis over the life of the lease, even if this
does not match the pattern of payments (eg there is a premium paid at the commencement
of the lease). Initial direct costs incurred in negotiating and arranging the lease are added to
the carrying amount of the relevant asset and charged as an expense over the lease term
on the same basis as rental income.
1.13 OVERHEADS AND SUPPORT SERVICES
The costs of overheads and support services are charged to those that benefit from the
supply or service in accordance with the costing principles laid down by CIFPA. The total
absorption costing principle is used – the full cost of overheads and support services are
shared between users in proportion to the benefits received, with the exception of:


Corporate and Democratic Core – costs relating to the Authority’s status as a multifunctional democratic organisation.
Non-Distributed Costs – the cost of discretionary benefits awarded to employees
retiring early and impairment losses chargeable on assets held for sale.
These two cost categories are accounted for as separate headings in the Comprehensive
Income and Expenditure Statement, as part of Net Expenditure on Services.
1.14 PROPERTY, PLANT AND EQUIPMENT
Assets that have physical substance and are held for use in the production or supply of
goods or services, for rental to others, or for administrative purposes and that are
expected to be used during more than one financial year are classified as Property, Plant
and Equipment.
Recognition
Expenditure on the acquisition, creation or enhancement of Property, Plant and
Equipment is capitalised on an accruals basis, provided that it is probable that the
future economic benefits or service potential associated with the item will flow to the
Authority and the cost of the item can be measured reliably. Expenditure that
maintains but does not add to an asset’s potential to deliver future economic benefits
or service potential (ie repairs and maintenance) is charged as an expense when it is
incurred. The Authority has set a minimum level of £10,000 for capitalising
expenditure, with the exception of land and buildings which are always capitalised.
Expenditure below the minimum level is treated as revenue and assets with a net book
value of less than £10,000 have been written out of the balance sheet and are no
longer included in the total of fixed assets.
Measurement
Assets are initially measured at cost, comprising the purchase price and any costs
attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management.
15
Statement of Accounts 2012/13
Assets are then carried in the Balance Sheet using the following measurement bases:
 Infrastructure, community assets and assets under construction: depreciated
historical cost.
 All other assets: fair value, determined as the amount that would be paid for the
asset in its existing use (existing use value).
Where there is no market-based evidence of fair value because of the specialist nature of
an asset, depreciated replacement cost is used as an estimate of fair value. Where nonproperty assets that have short useful lives or low values (or both), depreciated historical
cost basis is used as a proxy for fair value. Assets included in the Balance Sheet at fair
value are revalued sufficiently regularly to ensure that their carrying amount is not
materially different from their fair value at the year-end, but as a minimum every five years.
Increases in valuations are matched by credits to the Revaluation Reserve to recognise
unrealised gains.
Where decreases in value are identified, they are accounted for by:
 where there is a balance of revaluation gains for the asset in the Revaluation Reserve,
the carrying amount of the asset is written down against that balance (up to the
amount of the accumulated gains)
 where there is no balance in the Revaluation Reserve or an insufficient balance, the
carrying amount of the asset is written down against the relevant service line(s) in the
Comprehensive Income and Expenditure Statement.
The Revaluation Reserve contains revaluation gains recognised since 1 April 2007 only, the
date of its formal implementation. Gains arising before that date have been consolidated
into the Capital Adjustment Account.
Impairment
Assets are assessed at each year-end as to whether there is any indication that an asset
may be impaired. Where indications exist and any possible differences are estimated to be
material, the recoverable amount of the asset is estimated and, where this is less than the
carrying amount of the asset, an impairment loss is recognised for the shortfall.
Where impairment losses are identified, they are accounted for by:
 where there is a balance of revaluation gains for the asset in the Revaluation Reserve,
the carrying amount of the asset is written down against that balance (up to the
amount of the accumulated gains)
 where there is no balance in the Revaluation Reserve or an insufficient balance, the
carrying amount of the asset is written down against the relevant service line(s) in the
Comprehensive Income and Expenditure Statement.
 where an impairment loss is reversed subsequently, the reversal is credited to the
relevant service line(s) in the Comprehensive Income and Expenditure Statement, up
to the amount of the original loss, adjusted for depreciation that would have been
charged if the loss had not been recognised.
Depreciation
Depreciation is provided for on all Property, Plant and Equipment assets by the systematic
allocation of their depreciable amounts over their useful lives. An exception is made for
assets without a determinable finite useful life (ie freehold land and certain Community
Assets) and assets that are not yet available for use (ie assets under construction).
Deprecation is calculated on the following bases:
16
Statement of Accounts 2012/13
 dwellings and other buildings – straight-line allocation over the useful life of the
property as estimated by the valuer
 vehicles, plant, furniture and equipment – straight-line allocation over the useful life of
the asset as advised by a suitably qualified officer
 infrastructure (rights of way, trails and associated structures – straight-line allocation
over the useful life of the asset as advised by a suitably qualified officer
In the absence of specific advice, the estimated asset lives used are as follows:
Vehicles and other equipment
IT equipment
Community and Infrastructure
assets
5 years
3 years
20 years
Intangible Assets
3 years
Where an item of Property, Plant and Equipment asset has major components whose cost
is significant in relation to the total cost of the item, the components are depreciated
separately.
Revaluation gains are also depreciated, with an amount equal to the difference between
current value depreciation charged on assets and the depreciation that would have been
chargeable based on their historical cost being transferred each year from the Revaluation
Reserve to the Capital Adjustment Account.
Disposals and Non-current Assets Held for Sale
When it becomes probable that the carrying amount of an asset will be recovered
principally through a sale transaction rather than through its continuing use, it is reclassified
as an Asset Held for Sale. The asset is re-valued immediately before reclassification and
then carried at the lower of this amount and fair value less costs to sell. Where there is a
subsequent decrease to fair value less costs to sell, the loss is posted to the Other
Operating Expenditure line in the Comprehensive Income and Expenditure Statement.
Gains in fair value are recognised only up to the amount of any previously losses
recognised in the Surplus or Deficit on Provision of Services. Depreciation is not charged
on Assets Held for Sale.
If assets no longer meet the criteria to be classified as Assets Held for Sale, they are
reclassified back to non-current assets and valued at the lower of their carrying amount
before they were classified as held for sale; adjusted for depreciation, amortisation or
revaluations that would have been recognised had they not been classified as Held for Sale,
and their recoverable amount at the date of the decision not to sell.
Assets that are to be abandoned or scrapped are not reclassified as Assets Held for Sale.
When an asset is disposed of or decommissioned, the carrying amount of the asset in the
Balance Sheet (whether Property, Plant and Equipment or Assets Held for Sale) is written
off to the Other Operating Expenditure line in the Comprehensive Income and
Expenditure Statement as part of the gain or loss on disposal. Receipts from disposals (if
any) are credited to the same line in the Comprehensive Income and Expenditure
Statement also as part of the gain or loss on disposal (ie netted off against the carrying
value of the asset at the time of disposal). Any revaluation gains accumulated for the asset
in the Revaluation Reserve are transferred to the Capital Adjustment Account.
Amounts received for a disposal in excess of £10,000 are categorised as capital receipts.
Receipts are appropriated to the Reserve from the General Fund Balance in the Movement
in Reserves Statement. As the Authority is debt free, 100% of any such receipts can be
used to finance new capital expenditure
17
Statement of Accounts 2012/13
The written-off value of disposals is not a charge against taxation, as the cost of fixed assets
is fully provided for under separate arrangements for capital financing. Amounts are
appropriated to the Capital Adjustment Account from the General Fund Balance in the
Movement in Reserves Statement.
18
Statement of Accounts 2012/13
1.15
PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT
ASSETS
Provisions
Provisions are made where an event has taken place that gives the Authority a legal or
constructive obligation that probably requires settlement by a transfer of economic
benefits or service potential, and a reliable estimate can be made of the amount of the
obligation. For instance, the Authority may be involved in a court case that could eventually
result in the making of a settlement or the payment of compensation.
Provisions are charged as an expense to the appropriate service line in the Comprehensive
Income and Expenditure Statement in the year that the authority becomes aware of the
obligation, and are measured at the best estimate at the balance sheet date of the
expenditure required to settle the obligation, taking into account relevant risks and
uncertainties.
When payments are eventually made, they are charged to the provision carried in the
Balance Sheet. Estimated settlements are reviewed at the end of each financial year –
where it becomes less than probable that a transfer of economic benefits will now be
required (or a lower settlement than anticipated is made), the provision is reversed and
credited back to the relevant service.
Where some or all of the payment required to settle a provision is expected to be
recovered from another party (e.g. from an insurance claim), this is only recognised as
income for the relevant service if it is virtually certain that reimbursement will be received
if the authority settles the obligation.
Contingent Liabilities
A contingent liability arises where an event has taken place that gives the authority a
possible obligation whose existence will only be confirmed by the occurrence or otherwise
of uncertain future events not wholly within the control of the authority. Contingent
liabilities also arise in circumstances where a provision would otherwise be made but either
it is not probable that an outflow of resources will be required or the amount of the
obligation cannot be measured reliably.
Contingent liabilities are not recognised in the Balance Sheet but disclosed in a note to the
accounts.
Contingent Assets
A contingent asset arises where an event has taken place that gives the authority a possible
asset whose existence will only be confirmed by the occurrence or otherwise of uncertain
future events not wholly within the control of the authority.
Contingent assets are not recognised in the Balance Sheet but disclosed in a note to the
accounts where it is probable that there will be an inflow of economic benefits or service
potential.
1.16 RESERVES
The Authority sets aside specific amounts as reserves for future policy purposes or to
cover contingencies. Reserves are created by appropriating amounts out of the General
Fund Balance in the Movement in Reserves Statement. When expenditure to be financed
from a reserve is incurred, it is charged to the appropriate service in that year to score
against the Surplus or Deficit on the Provision of Services in the Comprehensive Income
and Expenditure Statement. The reserve is then appropriated back into the General Fund
Balance in the Movement in Reserves Statement so that there is no net charge against
taxation for the expenditure.
19
Statement of Accounts 2012/13
Certain reserves are kept to manage the accounting processes for non-current assets,
retirement and employee benefits and do not represent usable resources for the Authority
– these reserves are explained in the relevant policies.
1.17
VALUE ADDED TAX
The accounts have been prepared on a VAT exclusive basis, to the extent that it is
recoverable.
1.18
REVENUE EXPENDITURE FUNDED FROM CAPITAL UNDER
STATUTE
Expenditure incurred during the year that may be capitalised under statutory provisions
but that does not result in the creation of a non-current asset has been charged as
expenditure to the relevant service in the Comprehensive Income and Expenditure
Statement in the year.
20
Statement of Accounts 2012/13
COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT
This statement shows the accounting cost in the year of providing services in accordance with
generally accepted accounting practices, rather than the amount to be funded from taxation.
The Authority’s expenditure is funded from taxation, in accordance with regulations, via the
National Park Grant and Levy on Constituent Authorities. This may differ from the accounting
calculation of operating expenditure. The adjustments to the accounting calculation to arrive at
the taxation-funded position are shown in the Movement in Reserves Statement.
Comprehensive Income and Expenditure Statement
2011/12
Income
£000
Net
£000
NOTES
Expenditure
£000
2012/13
Income
Expenditure
£000
Net
£000
£000
172
(23)
149 Conservation of the Natural Environment
210
(33)
177
72
(9)
63 Conservation of the Historic Environment
106
(5)
101
991
(204)
787 Development Control
1,156
(237)
919
699
(269)
430 Planning Policy and Communities
812
(93)
719
2,272
(1,086)
2,289
(1,127)
1,162
508
(275)
233 Recreation and Park Management
504
(171)
333
893
(165)
728 Rangers, Estates and Volunteers
887
(147)
740
742
(26)
716 Democratic Representation and Management
644
(8)
636
120
0
0
0
0
6,469
(2,057)
6,608
(1,821)
4,787
1,186 Promoting Understanding and Enjoyment
120 Non-Distributed Costs (Past Service Cost relating
to the local government pension scheme)
48
4,412 COST OF SERVICES
1 Other Operating Expenditure
85 Financing and Investment Income and Expenditure
(4,392) Taxation and Non-Specific Grant Income
(5)
9
117
10
(4,605)
11
106 DEFICIT/(SURPLUS) ON PROVISION OF
294
SERVICES
1,500
Actuarial (Gains)/Losses on Pension Assets and
Liabilities
48
440
1,500 OTHER COMPREHENSIVE INCOME AND
440
1,606 TOTAL COMPREHENSIVE INCOME AND
734
EXPENDITURE
EXPENDITURE
21
Statement of Accounts 2012/13
BALANCE SHEET
The Balance Sheet shows the value as at the balance sheet date of the assets and liabilities
recognised by the Authority. The net assets of the Authority (assets less liabilities) are matched
by the reserves held by the Authority. Reserves are reported in two categories. The first
category of reserves are usable reserves, ie those that the Authority may use to provide services,
subject to the need to maintain a prudent level of reserves and any statutory limitations on their
use. The second category includes those that the Authority is not able to use to provide
services. This includes reserves holding unrealised gains and losses, such as the Revaluation
Reserve, where amounts would only become available to provide services if the assets were sold,
and also record timing differences shown in the Movement in Reserves Statement line
‘Adjustments between accounting basis and funding basis under regulations’.
Balance Sheet
NOTES
2011/12
(£000)
3,449
12
29
3,490
PROPERTY, PLANT AND EQUIPMENT
12
INTANGIBLE ASSETS
15
ASSETS HELD FOR SALE
21
500
65
546
723
1,834
Short-term investments
Inventories
Short-term Debtors
Cash and Cash Equivalents
TOTAL LONG-TERM ASSETS
16
17
19
20
CURRENT ASSETS
691 Short-Term Creditors
691 CURRENT LIABILITIES
6,291 Liability Related to Defined Benefit Pension Schemes
6,291 LONG TERM LIABILITIES
4,426
8
0
4,434
800
66
586
277
1,729
22
582
582
48
6,853
6,853
(1,658) NET ASSETS
1,220 Usable Reserves
(2,878) Unusable Reserves
(1,658) TOTAL RESERVES
2012/13
(£000)
(1,272)
24
25
1,231
(2,503)
(1,272)
22
Statement of Accounts 2012/13
MOVEMENTS IN RESERVES STATEMENT
This statement shows the movement in the year on the different reserves held by the Authority,
analysed into ‘usable reserves’ (i.e. those that can be applied to fund expenditure or reduce local
taxation) and other reserves. The Surplus or (Deficit) on the Provision of Services line shows
the true economic cost of providing the Authority’s services, more details of which are shown in
the Comprehensive Income and Expenditure Statement. These are different from the statutory
amounts required to be charged to the General Fund Balance. The Net Increase/(Decrease)
before Transfers to Earmarked Reserves line shows the statutory General Fund Balance before
any discretionary transfers to or from earmarked reserves undertaken by the Authority.
Movements In Reserves 2012/13
(£000)
Beacons Bus
Total Earmarked
Reserve
Other
Capital Receipts Resve
Total Usable
Reserves
Accumulated
Absences Acct
115
23
90
33
27
26 388
0
1220
(64)
Pensions Reserve
Collabor8 and Rural
Alliances p projects
43
Capital Adjusttment
Account
National Grid Staffing
31
Revaluation Reserve
National Park Mgt Plan
Total Increase/
(Decrease) in
2012/13
Balance at 31
March 2013
Carried Forward
LDP Enquiry costs
(NOTE 8)
Conservation Fund
Transfers to/(from)
Earmarked Reserves
Compensation and
Legal Costs
General
Reserve
Balance at 31 March
832
2012
Movement in
reserves during
2012/13
Surplus/(deficit) on
the provision of
(294)
services
Other
Comprehensive
Income and
Expenditure
Total Comprehensive Income and (294)
Expenditure
Adjustment between
accounting basis and
271
funding basis under
regulations (NOTE 7)
Net Increase/
(Decrease) before
(23)
transfers to
Earmarked Reserves
480
2996
(6291)
(21)
21
(440)
(21)
21
(440)
(294)
(294)
34
305
(6)
1120
(176)
(122)
34
11
(6)
1099
(155)
(562)
(562)
(10)
0
12
(43)
7 (40)
70 (1)
5
10
(33)
0
12
(43)
7 (40)
70 (1)
5
10
34
11
(6)
1099
(155)
799
31
55
72
31 398
34
1231
(70)
1579
2841 (6853)
30
50
103 26
23
Statement of Accounts 2012/13
Movements In Reserves 2011/12
(£000)
Pensions Reserve
Capital Adjusttment Account
Revaluation Reserve
Accumulated Absences Acct
Total Usable Reserves
Capital Receipts Resve
Total Earmarked Reserve
Other
Beacons Bus
Collabor8 and Rural Alliances p
projects
National Grid Staffing
National Park Mgt Plan costs
LDP Enquiry costs
Conservation Fund
Compensation and Legal Costs
General Reserve
SEE NOTE 25
Balance at 31 March
655
2011
Movement in
reserves during
2011/12
Surplus/(deficit) on
the provision of
(106)
services
Other
Comprehensive
Income and
Expenditure
Total Comprehensive Income and (106)
Expenditure
Adjustment between
accounting basis and
275
funding basis under
regulations (NOTE 7)
Net Increase/
(Decrease) before
169
transfers to
Earmarked Reserves
Transfers to/(from)
Earmarked Reserves
(NOTE 8)
Total Increase/
(Decrease) in
2011/12
Balance at 31
March 2012
Carried Forward
36
30 120
10 142
19
13
26
396
0
1,051
(64)
472
3,119
(4,646)
8
7
(1,500)
8
7
(1,500)
(130)
(145)
(106)
(106)
0
275
169
0
8
(123)
(1,645)
(123)
(1,645)
8
(6)
14 (5)
13 (51)
14
13
0
(8)
177
(6)
14 (5)
13 (51)
14
13
0
(8)
0
169
0
8
832
31
43 115
23
33
27
26
388
0
1,220
(64)
480
90
0
2,996 (6,291)
24
Statement of Accounts 2012/13
CASH FLOW STATEMENT
The Cash Flow Statement shows the changes in cash and cash equivalents of the Authority
during the reporting period. The statement show how the Authority generates and uses cash
and cash equivalents by classifying cash flows as operating, investing or financing activities. The
amount of net cash flows arising from operating activities is a key indicator of the extent to
which the operations of the Authority are funded by way of taxation and grant income or from
the recipients of services provided by the Authority.
Cash Flow Statement
106 (Surplus)/Deficit on the provision of services
(179)
0
(55)
(1)
0
(7)
141
65
0
NOTE
2011/12
£000
Loss on valuation of asset held for sale
Loss on revaluation of Land and Buildings
0
128
28
(6)
Decrease in Stocks
Increase/(Decrease) in Debtors
(Increase)/Decrease in Creditors
(Increase )/Decrease in Creditor re Accrued Employee
Benefits
150
(620)
Cost and Expected Return on Pension Assets
Cash payment to Pension Fund in year
499
(145)
105 Capital Grants taken to Revenue Account
(121)
68
(76) Total Adjustments to net surplus or deficit on the
(119)
provision of services for non-cash movements
30
0 Adjustments for items included in the net surplus or
30
506 Investing Activities
0 Financing Activities
175
12
26
27
28
536 Net increase or decrease in cash and cash
(1,259)
(723)
equivalents
Cash and Cash Equivalents at the beginning of the
reporting period
Cash and Cash Equivalents at the end of the
reporting period
2012/13
£000
(178)
(4)
0
0
(34)
Impairments
deficit on the provision of services that are Investing
and Financing activities
Net Cash Flows from Operating Activities
2012/13
£000
294
Depreciation
Amortisation of intangible assets
199
(630) Reversal of Current Service Cost, Pension Interest
485
2012/13
£000
187
259
0
446
(723)
20
(277)
25
Statement of Accounts 2012/13
NOTES TO THE ACCOUNTS
NOTE 1: Accounting Policies:
The Authority’s Accounting Policies are described in the Statement of Accounting Policies
elsewhere in this document.
NOTE 2: Accounting Standards Issued and Not Adopted
Changes have been made to IFRS 7 Financial Instruments: Disclosures (transfers of financial
assets). The Authority currently has no Financial Instruments and will not be affected by IFRS 7
changes.
NOTE 3: Critical Judgements In Applying Accounting Policies
In applying the Authority’s Accounting Policies, certain judgements have been made involving
uncertainty about future events. The critical judgements made in the Statement of Accounts are:
 There is uncertainty about future levels of funding for National Park Authorities in Wales.
However, the assumption has been made that the Authority’s principal functions will
continue and that the Authority will continue to exist as a ‘going concern’. The most
significant implication of this is that the Authority’s future liabilities to the Powys Pension
Fund will not crystallise in the short term and are being met by contribution levels set by
the Fund’s actuary.
NOTE 4: Assumptions Made About The Future and Other Major Sources of
Estimation Uncertainty
The Statement of Accounts contains estimates figures which are based on assumptions made by
the Authority about the future or are otherwise uncertain. Estimates are made taking into
account historical experience, current trends and other relevant factors. However, because
balances cannot be determined with certainty, actual results could be materially different from
the assumptions and estimates.
The items in the Authority’s Balance Sheet at 31 March 2013 for which there is a significant risk
of material adjustment in the forthcoming financial year are as follows:
Item
Uncertainties
Pensions liability
Estimation of the net liability to pay
pensions depends on a number of
complex judgements relating to the
discount rate used, projected rats of
salary increase, changes to the Local
Government Pension Scheme itself,
future retirement ages, mortality
rates and expected returns on
pension fund assets. AON Hewitt
provides the Authority with actuarial
advice on the assumptions to be
applied and their effect – see Note
48.
Assets are depreciated over useful
lives that are dependent on
assumptions about the level of
Property, Plant and
Equipment
Effect If Actual Results Differ
From Assumptions
Changes in assumptions may
interact in a number of ways but
may have a large impact on the
Financial Statement.
A reduction in useful life or
identification of impairment
increases the charge on the Cost of
26
Statement of Accounts 2012/13
repairs and maintenance that will be
carried out on individual assets. The
current economic climate makes it
uncertain that the Authority will be
able to sustain its current spending
on repairs and maintenance, bringing
into doubt the useful lives assigned
to assets. Valuations ascribed to
Property by the Authority’s valuers
are affected by market values which
are substantially dependent on
economic factors outside the
Authority’s control.
Services and reduces the value of
assets in the Balance Sheet. The
Authority’s total charge for
depreciation in 2012/13 was
£181,000. Impairment was £nil
Changes in the market value of
assets may result in the Authority’s
land and buildings being under- or
over-valued.
NOTE 5: Material Items of Income and Expenditure not disclosed on the face of the
Comprehensive Income and Expenditure Statement
There were no material items of income or expenditure not disclosed (nor in 2011/12).
NOTE 6: Events After The Balance Sheet Date
The Statement of Accounts was authorised for issue by the Director of Finance on 28 June 2013.
Events taking place after this date are not reflected in the Statements or notes. Where events
taking place before this date provided information about conditions existing at 31 March 2013,
the figures in the Statements and notes have been adjusted in all material respects to reflect the
impact of this information.
NOTE 7: Adjustments between accounting basis and funding basis under
Regulations
This note details the adjustments that are made to the total comprehensive income and
expenditure recognised by the Authority in the year in accordance with proper accounting
practice to the resources that are specified by statutory provisions as being available to the
Authority to meet future capital and revenue expenditure. Below is a description of the General
Reserve, against which the adjustments are made.
General Reserve
The General Reserve is the statutory fund into which all the receipts of an authority are required
to be paid and out of which all liabilities are to be met, except to the extent that statutory rules
might provide otherwise. These rules can also specify the financial year in which liabilities and
payments should impact on the General Reserve, which is not necessarily in accordance with
proper accounting practice. The General Reserve therefore summarises the resources that the
Authority is statutorily empowered to spend on its services or on capital investment.
Earmarked Reserves
These reserves are amounts set aside by the Authority out of its revenue resources to meet
future costs whose timing and extent are uncertain. They are held until required or until such
time as the Authority decides that the anticipated costs will not arise, when they can be
transferred, via the appropriations account, into the General Reserve.
27
Statement of Accounts 2012/13
2011/12
General
Reserve
2012/13
£000
Movements
in Unusable
Reserves
£000
0
0
(234)
234
0
0
105
0
0
0
(105)
0
0
0
0
15
General
Reserve
Adjustments primarily involving the Capital
Adjustment Account
Reversal of items debited or credited to the
Comprehensive Income and Expenditure Statement
Charges for depreciation and impairment of noncurrent assets
Revaluation losses on Property, Plant and Equipment
Amortisation of intangible assets
Capital grants and contributions applied
Amounts of non-current assets written off on disposal
or sales as part of the gain/loss on disposal to CIES
Insertion of items not debited or credited to
the Comprehensive Income and Expenditure
Statement
Capital expenditure charged against the General Fund
Revaluation gain on asset held for sale
£000
Movements
in Unusable
Reserves
£000
0
0
(177)
177
(34)
(4)
68
(29)
34
4
(68)
29
0
0
0
0
33
0
(620)
620
498
(498)
(6)
6
(271)
304
Adjustments primarily involving the Capital
Receipts Reserve
0
0 Transfer of cash sale proceeds credited as part of the
gain/loss on disposal to the CIES
Adjustments primarily involving the Pensions
Reserve
(630)
630
485
(485)
0
0
(275)
289
Reversal of items relating to retirement benefits
debited or credited to the Comprehensive Income
and Expenditure Statement (see NOTE 48)
Employers’ pension contributions and direct payments
to pensioners payable in the year
Adjustments Primarily involving the
Accumulated Absences Account
Amount by which officer remuneration charged to the
Comprehensive income and Expenditure Statement
on an accruals basis is different from that chargeable
in the year in accordance with statutory requirements
TOTAL ADJUSTMENTS
28
Statement of Accounts 2012/13
NOTE 8: Transfers between Earmarked Reserves and the General Fund
Balance at
31 March
2013
Transfers in
Transfers
out
Balance at
31 March
2012
Transfers in
Transfers
out
Balance at
31 March
2011
£000
£000
£000
£000
£000
£000
£000
142
51
0
91
40
0
51
30
6
20
44
11
23
56
120
5
0
115
58
15
72
36
6
0
30
0
0
30
9
0
13
23
3
10
30
Collabor8 and Rural Alliances Projects
19
0
14
33
8
78
103
Beacons Bus
13
0
13
26
1
0
25
Other Earmarked Reserves
27
5
5
26
3
8
31
396
73
65
388
124
134
398
National Grid Staffing
Conservation Fund
Local Development Plan Enquiry
Compensation and Legal Costs
National Park Management Plan and State of the
Park Report
Total
NOTE 9: Other Operating Expenditure
2011/12
£000
2012/13
£000
1
(Gains)/losses on the disposal of non-current assets
(5)
1
Total
(5)
NOTE 10: Financing and Investment Income and Expenditure
2011/12
£000
2012/13
£000
0
810
(720)
(5)
85
Interest payable and similar charges
Pensions interest cost
Expected return on pensions assets
Interest receivable and similar income
Total
0
850
(720)
(13)
117
29
Statement of Accounts 2012/13
NOTE 11: Taxation and Non-Specific Grant Income
2011/12
£000
2011/12
£000
0
Levies on Constituent Local Authorities
2012/13
£000
630
Powys County Council
667
158
Carmarthenshire County Council
167
120
55
Monmouthshire County Council
127
58
Rhondda Cynon Taff County Borough Council
43
Merthyr Tydfil County Borough Council
46
33
33
Blaenau Gwent County Borough Council
35
35
Torfaen County Borough Council
2012/13
£000
1,072
3,216 Non-Specific Grant Income – National Park Grant
105 Capital Grants and Contributions
1,135
3,402
68
4,393 Total
4,605
30
Statement of Accounts 2012/13
NOTE 12: Property, plant and equipment
Infrastructure
Assets
Community Assets
£000
1,037
47
£000
292
Total Property,
Plant and Equipment
Vehicles, Plant,
Funrniture and
Equiopment
£000
964
22
Assets under
Construction
Land and Buildings
£000
2,990
Movements in 2012/13
Cost or Valuation:
At 1 April 2012
Additions
Valuation increases/(decreases)
recognised in the Revaln Reserve
Valuation increases/(decreases)
recognised in the CIES
De-recognition/disposals
Assets reclassified (to)/from held
for sale
Other movements in cost or
valuation
At 31 March 2013
£000
0
£000
5283
69
1,120
1,120
(34)
(34)
4076
986
1084
292
0
6,438
218
857
523
237
0
1,835
Accumulated depreciation and
Impairment
At 1 April 2012
Depreciation written out to the
revaluation reserve
Depreciation written out to the
surplus/deficit on the provision of
services
Total depreciation charge for
the year
Impairment losses/(reversals)
recognised in the revaluation
reserve
Impairment losses/(reversals
recognised in the surplus/deficit on
the provision of services
De-recognition – disposals
De-recognition – other
3
3
30
67
69
8
174
33
67
69
8
177
251
924
592
245
0
2012
2,772
3,825
107
62
515
492
55
47
0
0
3,449
4,426
Other movements in depreciation
and impairment
At 31 March 2013
Net Book Value
At 31 March 2012
At 31 March 2013
Comparative movements in
2011/12
31
Statement of Accounts 2012/13
£000
964
£000
987
50
£000
292
£000
0
Total Property,
Plant and Equipment
£000
2,951
55
Assets under
Construction
De-recognition/disposals
Assets reclassified (to)/from held
for sale
Other movements in cost or
valuation
At 31 March 2012
Community Assets
Valuation increases/(decreases)
recognised in the Revaln Reserve
Infrastructure
Assets
Additions
Vehicles, Plant,
Funrniture and
Equiopment
At 1 April 2011
Land and Buildings
Cost or Valuation:
£000
5,194
105
14
14
0
(30)
(30)
0
2991
964
1037
292
0
5,284
124
791
457
229
0
1,601
Accumulated depreciation and
Impairment
At 1 April 2011
Depreciation written out to the
revaluation reserve
Depreciation written out to the
surplus/deficit on the provision of
services
Total depreciation charge for
the year
Impairment losses/(reversals)
recognised in the revaluation
reserve
Impairment losses/(reversals
recognised in the surplus/deficit on
the provision of services
De-recognition – disposals
De-recognition – other
7
7
32
66
66
8
39
66
66
8
172
0
179
0
55
55
Other movements in depreciation
and impairment
At 31 March 2012
Net Book Value
At 31 March 2011
At 31 March 2012
218
857
523
237
0
1835
2,827
2,772
173
107
530
515
64
55
0
0
3,594
3,449
32
Statement of Accounts 2012/13
Depreciation: All assets except land are depreciated, in line with the Authority’s Statement of
Accounting Policies.
Capital Commitments: As at 31 March 2013 the Authority had no material capital
commitments for 2013/14. (There were none on 31 March 2012).
Effects of Changes in Estimates: There were no material effects of changes in accounting
estimates for Property, Plant and Equipment. (There were none in 2011/12).
Revaluations: The Authority carries out a revaluation at least every 5 years to ensure that all
Property, Plant and Equipment required to be measured at fair value is accurately valued. The
Authority’s land and buildings were last valued as at 31th March 2013 by qualified external valuers
in accordance with the methodologies and bases for estimation set out in the professional
standards of the Royal Institution of Chartered Surveyors. Other Property, Plant and Equipment
is valued at historic cost.
2012/13
Gross Value as at last
valuation
Land
and
Buildings
£000
Carried at historic cost as at
31/3/13
Valued at fair value as at 31
March 2013
TOTAL
Vehicles,
Furniture,
Plant and
Equipment
£000
Infrastructure
Assets
Community
Assets
£000
TOTAL
£000
£000
0
986
1,084
292
2,362
4,076
0
0
0
4,076
4,076
986
1,084
292
6,438
NOTE 13: Heritage Assets
The Authority has no material Heritage Assets. (There were none in 2011/12)
NOTE 14: Investment Properties
The Authority has no investment properties (There were none in 2011/12)
NOTE 15: Intangible Assets
2011/12
£000
Balance at start of year
Gross Carrying amounts
Accumulated amortisation
2012/13
£000
12
0
12
12
0
12
Additions – Purchases
0
0
Amortisation for the period
0
4
12
8
Net carrying amount at start of year
Net carrying amount at end of year
NOTE 16: Financial Instruments
The Authority had a fixed term bond of £800,000 at 31/3/13. It held a fixed term bond of
£500,000 at 31/3/12.
33
Statement of Accounts 2012/13
NOTE 17: Inventories
Consumable
Stores
£000
2011/12
Balance Outstanding at start of year
72
167
(174)
0
0
65
Purchases
Recognised as an expense in the year
Written off balances
Reversals of write-offs
Balance Outstanding at end of year
2012/13
Balance Outstanding at start of year
65
174
(171)
(1)
0
Purchases
Recognised as an expense in the year
Written off balances
Reversals of write-offs
67
Balance Outstanding at end of year
NOTE 18: Construction Contracts
The Authority has no Construction Contacts. (There were none in 2011/12 or 2010/11)
NOTE 19: Debtors
31 March 2012
£000
31 March 2013
£000
323
104
324
115
Public Corporations and Trading Funds
42
1
Bodies external to general government**
76
146
545
586
Central Government Bodies
Other Local Authorities
Total
** This item is shown net of a provision for bad debts of £0 (£880 in 2011/12) derived from an identification of
individual debts which are at significant risk of non-payment.
NOTE 20: Cash and Cash Equivalents
31March 2012
£000
31March 2013
£000
Bank Current Accounts
721
274
Total
723
277
Cash held by the Authority
2
3
34
Statement of Accounts 2012/13
NOTE 21: Assets Held For Sale
The Authority has the following assets held for sale.
31March
2012
£000
31March
2013
£000
Property newly classified as held for sale
0
30
Revaluation losses
(1)
0
Revaluation gains
0
0
Impairment losses
0
0
Property de-classified as held for sale
0
0
Assets sold
0
(29)
Other movements
0
0
29
0
Balance Outstanding at start of year
Balance outstanding at year-end
29
0
Note 22: Creditors*
31March
2012
£000
Central Government Bodies
Other Local Authorities
121
206
31March
2013
£000
88
77
NHS bodies
0
0
Public Corporations and Trading Funds
0
0
Other Entities and Individuals
364
417
Total
691
582
NOTE 23: Provisions
Provision for Bad
Debts
£000
Balance at 1/4/12
Additional provisions made in 2012/13
Provision written out in 2012/13
Amounts used in 2012/13
Balance at 31/3/13
1
0
(1)
0
0
NOTE 24: Usable Reserves
See Note 8 and the Movement in Reserves Statement
35
Statement of Accounts 2012/13
NOTE 25: Unusable Reserves
31 March 2012
£000
Revaluation Reserve
Capital Adjustment Account
480
2,996
31 March 2013
£000
1,579
2,841
(64)
(70)
Pensions Reserve
(6,291)
(6,853)
Total
(2,879)
(2,503)
Accumulated Absences Account
25.1 Revaluation Reserve
The Revaluation Reserve contains the gains made by the Authority arising from increases in the
value of its Property, Plant and Equipment and Intangible Assets. The balance is reduced when
assets with accumulated gains are:
 revalued downwards or impaired and the gains are lost
 used in the provision of service and the gains are consumed through depreciation, or
 disposed of and the gains are realised.
The Reserve contains only revaluation gains accumulated since it was established on 1 April
2007. Accumulated gains arising before that date are consolidated into the balance on the Capital
Adjustment Account.
2011/12
£000
472 Balance at 1 April
15 Upward revaluation of assets
0 Downward revaluation of assets and impairment losses not
charged to the Surplus/Deficit on the Provision of Services
2012/13
£000
(7)
0
(7) Amount written off to the Capital Adjustment Account
480 Balance at 31 March
480
1,348
(228)
15 Surplus or deficit on revaluation of non-current assets not
posted to the Surplus or Deficit on the Provision of Services
Difference between fair value depreciation and historical cost
depreciation
Accumulated gains on assets sold or scrapped
2012/13
£000
1,120
(3)
(18)
(21)
1,579
25.2 Capital Adjustment Account
The Capital Adjustment Account absorbs the timing differences arising from the different
arrangements for accounting for the consumption of non-current assets and for financing the
acquisition, construction or enhancement of those assets under statutory provisions. The
Account is debited with the cost of acquisition, construction or enhancement as depreciation,
impairment losses and amortisations are charged to the Comprehensive Income and Expenditure
Statement (with reconciling postings from the Revaluation Reserve to convert fair value figures
to an historical cost basis). The Account is credited with the amounts set aside by the Authority
as finance for the costs of acquisition, construction and enhancement.
The Account contains accumulated gains on Property, Plant and Equipment before 1 April 2007,
the date that the Revaluation Reserve was created to hold such gains.
Note 7 provides details of the source of all the transactions posted to the Account, apart from
those involving the Revaluation Reserve.
36
Statement of Accounts 2012/13
2011/12
£000
2012/13
£000
2012/13
£000
3,119 Balance at 1 April
(234)
(1)
0
0
0
Reversal of items relating to capital expenditure debited or credited to
the Comprehensive Income and Expenditure Statement.
 Charges for depreciation and impairment of non-current assets
 Revaluation losses on Property, Plant and Equipment
 Amortisation of intangible assets
 Revenue Expenditure funded from capital under statute
 Amounts of non-current assets written off on disposal or sale
as pert of the gain/loss on disposal to the Comprehensive
Income and Expenditure Statement
2,996
(177)
(34)
(4)
0
(11)
(235)
7 Adjusting amounts written out of the Revaluation Reserve
(228) Net amount written out of the cost of non-current assets consumed in
(226)
3
(223)
the year.
Capital financing applied in the year
105

68
Capital grants and contributions credited to the
Comprehensive Income and Expenditure Statement that have
been applied to capital financing
 Capital expenditure charged against the General Fund
0
105
2,996 Balance at 31 March
0
68
2,841
25.3 Pensions Reserve
The Pensions Reserve absorbs the timing differences arising from the different arrangements for
accounting for post-employment benefits and for funding benefits in accordance with statutory
provisions. The Authority accounts for post-employment benefits in the Comprehensive Income
and Expenditure Statement as the benefits are earned by employees accruing years of service,
updating the liabilities recognised to reflect inflation, changing assumptions and investment
returns on any resources set aside to meet the costs. However, statutory arrangements require
benefits earned to be financed as the Authority makes employer’s contributions to pension funds
or eventually pays any pensions for which it is directly responsible. The debit balance on the
Pensions Reserve therefore shows a substantial shortfall in the benefits earned by past and
current employees and in the resources the Authority has set aside to meet them. The
statutory arrangements will ensure that funding will have been set aside by the time the benefits
come to be paid.
2011/12
£000
(4,646) Balance at 1 April
(1,500) Actuarial gains/( losses) on pensions assets and liabilities
(630) Reversal of items relating to retirement benefits debited or credited to the
485
0
Surplus of Deficit on the Provision of Services in the Comprehensive Income
and Expenditure Statement
Employer’s pension contributions and direct payments to pensioners payable
in the year
Adjustment for Pension fund strain accrued but not paid
(6,291) Balance at 31 March
2012/13
£000
(6291)
(440)
(620)
498
0
(6,853)
37
Statement of Accounts 2012/13
25.4 The Accumulated Absences Account
The Accumulated Absences Account absorbs the differences that would otherwise arise on the
General Fund Balance from accruing for compensated absences earned but not taken in the year,
eg annual leave entitlement carried forward at 31 March. Statutory arrangements require that
the impact on the General Fund Balance is neutralised by transfers to or from the Account.
2011/12
£000
(64) Balance at 1 April
0 Net change in Accrual; amount by which officer remuneration charged to the
(64)
2012/13
£000
(64)
(6)
Comprehensive Income and Expenditure Statement on an accruals basis is
different from remuneration chargeable in the year in accordance with
statutory requirements
Balance at 31 March
(70)
NOTE 26: Cash Flow Statement: Operating Activities
2011/12
£000
2012/13
£000
3,897
1,072
942
2
218
6,131
Cash Inflows from Operating Activities
Government grants
Levies on Constituent Authorities
Cash received for goods and services
Interest received
Other operating cash receipts
2012/13
£000
2012/13
£000
3,914
1,134
926
0
274
6,248
Cash Outflows on Operating Activities
(3,168)
0
(2,993)
(6161)
(30)
Cash paid to and on behalf of employees
Interest Paid
Other operating cash payments
(3,043)
0
(3,392)
Net Cash flow on Operating Activities
(6,435)
(187)
NOTE 27: Cash Flow Statement - Investing Activities
2011/12
£000
111
500
0
0
0
(105)
506
2012/13
£000
Purchase of property, plant and equipment and intangible assets
Purchase of short- and long-term investments
Other payments for investing activities
Proceeds from the sale of property, plant and equipment and intangible
assets
Proceeds from short-term investments
Other receipts from investing activities (Capital Grants)
Net cash flows from investing activities
68
300
0
(35)
(6)
(68)
259
NOTE 28: Cash Flow Statement - Financing Activities
2011/12
£000
0
0
0
0
0
2012/13
£000
Cash receipts of short- and long-term borrowing
Other receipts from financing activities
Repayments of short- and long-term borrowing
Other payments for financing activities
Net cash flows from financing activities
0
0
0
0
0
38
Statement of Accounts 2012/13
NOTE 29: Amounts Reported For Resource Allocation Decisions
The analysis of income and expenditure by service on the face of the Comprehensive Income and
Expenditure Statement is that specified by the Best Value Accounting Code of Practice.
However, decisions about resource allocation are taken by the Authority on the basis of budget
reports analysed across directorates. These reports are prepared on a different basis from the
accounting policies used in the financial statements. In particular:



No charges are made in relation to capital expenditure (whereas depreciation,
revaluation and impairment losses in excess of the balance on the Revaluation Reserve
and amortisations are charged to services in the Comprehensive Income and Expenditure
Statement)
The cost of retirement benefits is based on cash flows (payment of employer’s pensions
contributions) rather than current service costs of benefits accrued in the year
Expenditure on support services is budgeted for under the Directorate within which
services sit operationally and is not recharged to services.
29.1 Income and expenditure recorded in budget monitoring reports
The income and expenditure of the Authority’s principal Directorates as recorded in budget
monitoring reports for the year is as follows:
Directorate Income and
Expenditure 2012/13
Planning
£000
Fees, charges and other service
income
Interest and Investment income
(237)
Countryside
and
Community
£000
(774)
Chief
Executive’s
Office
£000
Other*
Total
£000
£000
(46)
(148)
(1,205)
(13)
(895)
(4,536)
Grants and Contributions
(75)
(801)
(19)
Income from Non-Specific
Grants and Levies
Total Income
(13)
(0)
(4,536)
(312)
(1,575)
(65)
(4,697)
(6,649)
920
367
1,950
1,619
916
776
134
3,786
2,896
1,287
3,569
1,692
134
6,682
975
1,994
1,627
(4,563)
33
Employee expenses
Other service expenses
Depreciation, Amortisation and
Impairment
Interest Payments
Total Expenditure
Net Expenditure
* Other includes National Park Grant and Levies, Transfers to and from Earmarked
reserves, and Interest Income.
39
Statement of Accounts 2012/13
Directorate Income and
Expenditure 2011/12
Planning
£000
Fees, charges and other service
income
Interest and Investment income
Grants and Contributions
Income from Non-Specific
Grants and Levies
Total Income
Employee expenses
Other service expenses
Depreciation, Amortisation and
Impairment
Interest Payments
Total Expenditure
Net Expenditure
Countryside
and
Community
£000
Chief
Executive’s
Office
£000
Other*
Total
£000
£000
(202)
(771)
(55)
(86)
(1,114)
0
(42)
0
0
(1,063)
0
0
(34)
0
(5)
0
(4,287)
(5)
(1,139)
(4,287)
(244)
(1,834)
(89)
(4,378)
(6,545)
910
291
0
1,905
1,620
0
881
696
0
0
65
0
3,696
2,672
0
0
1,201
0
3,525
0
1,577
0
65
0
6,368
957
1,691
1,488
(4,313)
(177)
29.2 Reconciliation of Directorate Income and Expenditure to Cost of Services in
the Comprehensive Income and Expenditure Statement
This reconciliation shows how the figures in the analysis of Directorate income and expenditure
relate to the amounts included in the Comprehensive Income and Expenditure Statement.
2011/12
£000
Net expenditure in the Directorate Analysis
Net expenditure of services and support services not included in the
Analysis
Amounts in the Comprehensive Income and Expenditure Statement not
reported to management in the Analysis
Amounts included in the Analysis not included in the Comprehensive
Income and Expenditure Statement
Cost of Services in the Comprehensive Income and Expenditure
Statement
2012/13
£000
(177)
33
0
0
288
214
4,301
4,540
4,412
4,787
29.3 Reconciliation to Subjective Analysis
This reconciliation shows how the figures in the analysis of Directorate income and expenditure
relate to a subjective analysis of the Surplus or Deficit on the Provision of Services included in
the Comprehensive Income and Expenditure Statement.
40
Statement of Accounts 2012/13
Grants and Contributions
Income from Non-Specific Grants and Levies
Total Income
Employee expenses
Other service expenses
Depreciation, amortisation and impairment
Interest Payments
Total Expenditure
Net Cost of Services
£000
£000
£000
(1,205)
(13)
0
£000
54
£000
226
13
(895)
(4,536)
(6,649)
3,786
2,896
(925)
0
(895)
4,536
0
54
(693)
639
4,775
6,682
214
(54)
(235)
(1,820)
3,091
3,300
216
0
6,607
33
214
0
4,540
4,787
(2)
(235)
216
£000
£000
£000
Total
Amounts not
included in
CIES
Allocation of
Recharges
Total not
reported to
Management
2011/12
Fees, Charges and other service income
Total
Interest and investment income
Amounts not
included in
CIES
Allocation of
Recharges
Total not
reported to
Management
Directorate
Analysis
2012/13
Fees, Charges and other service income
£000
£000
Interest and investment income
(1,114)
(5)
0
0
36
0
160
5
(918)
0
Grants and Contributions
(1,139)
0
0
0
(1139)
Income from Non-Specific Grants and Levies
(4,287)
0
0
4287
0
(6,545)
3,696
2,672
0
0
6,368
0
55
289
36
(376)
340
0
0
(36)
4452
0
(153)
0
0
(153)
(2,057)
3,375
2,859
234
0
6468
(177)
289
(0)
4299
4411
Total Income
Employee expenses
Other service expenses
Depreciation, amortisation and impairment
Interest Payments
Total Expenditure
Net Cost of Services
234
NOTE 30: Acquired And Discontinued Operations
The Authority has no acquired or discontinued operations (There were none in 2011/12).
NOTE 31: Trading Operations
The Authority has no Trading Operations (There were none in 2011/12)
NOTE 32: Agency Services
The Authority provides planning application processing services for Powys County Council,
which are charged on a per application basis.
Expenditure incurred in providing planning services to Powys
41
Statement of Accounts 2012/13
2011/12
£000
2012/13
£000
22
(7)
15
22
(7)
15
Expenditure incurred in providing planning services to Powys County Council
Charges made to Powys County Council
Net Loss arising on the agency arrangement
NOTE 33: Road Charging Schemes under the Transport Act 2000.
The Authority has no Road Charging Schemes (There were none in 2011/12)
NOTE 34: Pooled Budgets
The Authority has no Pooled Budgets (There were none in 2011/12)
NOTE 35: Members’ Allowances
The Authority paid the following amounts to members of the Authority during the year
2011/12
£000
2012/13
£000
70
25
95
Allowances
Expenses
Total
89
17
106
NOTE 36: Officers’ Remuneration
The remuneration paid to the Authority’s senior employees is as follows:
Salary
Expenses
£000
Employer’s
Pension
Contribution
£000
£000
Total
£000
2011/12
74
72
0
0
14
14
88
86
Director of Countryside &
Land Management
2012/13
54
1
10
65
2011/12
53
5
10
68
Director of Planning
2012/13
2011/12
55
54
1
0
10
11
66
65
Chief Executive
2012/13
There were no other employees who received remuneration of more than £60,000 for the year
(none in 2011/12)
The numbers of exit packages with total cost per band and total cost of the compulsory and
other redundancies are set out in the table below:
Exit package cost
band (including
special payments
£
0-20,000
20,001-100,000
Total
Number of
compulsory
redundancies
Number of other
departures agreed
Total number of
exit packages by
cost band
Total cost of exit
packages in each
band (£000)
2011/
12
2012/13
2011/12
2012/13
2011/12
2012/13
1
1
0
0
0
0
0
0
1
1
0
0
14
23
0
0
2
0
0
0
2
0
37
0
2011/12
2012/13
42
Statement of Accounts 2012/13
NOTE 37: External Audit Costs
The Authority has incurred the following costs in relation to the audit of the Statement of
Accounts, certification of grant claims and statutory inspections provided by the Authority’s
external auditors.
Fees payable to external auditors for:
External audit services carried out by the appointed auditor for the year
Statutory Inspections
Certification of grant claims and returns
Total
2011/12
£000
2012/13
£000
20
12
1
33
20
12
1
33
NOTE 38: Dedicated Schools Grants
Not applicable to the Authority.
NOTE 39: Grant Income
The Authority credited the following grants, contributions and donations to the Comprehensive
Income and Expenditure Statement in 2012/13
Credited to Taxation and Non-Specific Grant Income
National Park Grant
National Park Capital Grant
Levies – Powys County Council
Carmarthenshire County Council
Monmouthshire County Council
Rhondda Cynon Taff County Borough Council
Merthyr Tydfil County Borough Council
Blaenau Gwent County Borough Council
Torfaen County Borough Council
Total
Credited to Services
Sustainable Development Fund Grant
EU Grant – Collabor8 sustainable tourism project and Rural Alliances
Projects
WG Targetted Match Funding Grant
WG Capital Grant applied to projects accounted for as Revenue items
Planning Improvement Grant
Splash water-based recreation project
Visit Wales and Tourism Partnership Grants
Other Government Grants
Other Local Authority Grants and Contributions
Other Grants
Donations
Total credited to services
Total Grants, Contributions and Donations
2011/12
£000
2012/13
£000
3216
105
630
158
120
55
43
33
33
4,393
3402
68
667
167
127
58
46
35
35
4,605
203
227
0
200
0
90
37
53
104
136
182
102
4
1,138
5,531
99
48
63
16
10
100
167
168
3
874
5,479
‘* Sustainable Development Fund grant was incorporated into National Park Grant and Levy from 1 April 2012
43
Statement of Accounts 2012/13
NOTE 40: Related Parties
The Authority is required to disclose material transactions with related parties – bodies or
individuals that have the potential to control or influence the Authority or to be controlled or
influenced by the Authority. Disclosure of these transactions allows readers to asses the extent
to which the Authority might have been constrained in its ability to operate independently or
might have secured the ability to limit another party’s ability to bargain freely with the Authority.
40.1 Central Government
The Welsh Assembly Government has effective control over the general operations of the
Authority – it provides the majority of its funding in the form of grants and by determining the
total Levy which the Authority may make on its Constituent Local Authorities. It also sets
objectives for the Authority by means of the Memorandum of Understanding and the annual
Strategic Grant Letter. The Authority’s operations and management are also controlled by a
statutory framework encompassing a range of legislation which includes a definition of its
statutory purposes and duty. Grants received from government departments are set out in the
subjective analysis in Note 29 on reporting for resource allocation decisions. Grant receipts
outstanding at 31 March 2013 and 2012 are shown in note 39.
40.2 Members
Members of the Authority have direct control over the Authority’s financial and operating
policies. The total of members’ allowances paid in 2012/13 and in 2011/12 is shown in Note 35.
Where members are personally affected by decisions made by the Authority they are required to
declare an interest and refrain from taking part in those decisions and discussions relating to
them. Details of members’ interests are recorded in the Register of Members’ Interests, open to
public inspection at the Authority’s offices during working hours.
40.3 Other Public Bodies
The Constituent Local Authorities, within whose boundaries the Authority’s own boundary runs,
contribute to the finances of the Authority by means of a statutory levy, determined by the
Welsh Assembly Government. Each of these authorities provides a number of councillors to
serve as members of the National Park Authority, broadly in proportion to the size of the levy
they contribute and their area within the National Park. The authority represented by each
member is shown in Appendix 1 of the Statement of Accounts. Grants for specific purposes are
also received from local authorities.
40.4 Senior Management
The Chief Executive and Directors of the Authority are in a position to influence the Authority’s
policies and allocation of its resources. Payments to these officers are identified in Note 36.
40.5 Entities Controlled or Significantly Influenced by the Authority
The Authority gives grants for specific purposes to organisations under the Sustainable Devt
Fund, Historic Building Grant Schemes and Community Grant Schemes but it is not considered
that the Authority has control, joint control or significant influence over the entities assisted.
The Authority gives an annual subscription to the Welsh Association of National Park
Authorities, which exists to promote the interests of the 3 Welsh National Parks. This was
£21,000 in 2012/13 and in 2011/12. The WANPA Chairman and Secretary roles are provided by
the 3 Welsh National Parks Chairmen and Chief Executives in rotation.
NOTE 41: Capital Expenditure and Capital Financing
The total amount of capital expenditure incurred in the year is shown in the table below,
together with the resources that have been used to finance it. If capital expenditure were to be
financed in future years by charges to revenue as assets were used by the Authority, the
expenditure would require a calculation of the Capital Financing Requirement. As the Authority
is currently debt-free, this calculation is not required.
44
Statement of Accounts 2012/13
2011/12
£000
Opening capital financing requirement
2012/13
£000
0
0
105
0
105
68
0
68
(105)
0
0
(68)
0
0
Capital investment
Property, Plant and Equipment
Intangible Assets
Less: Sources of finance
Government grants and other contributions
Direct revenue contributions
Closing Capital Financing Requirement
NOTE 42: Leases
42.1 The Authority as Lessee
Finance Leases: the Authority currently has no leases which are classified as finance leases
under the terms of the CIPFA Code of Practice.
Operating Leases: The Authority’s headquarters, some office equipment and its vehicle fleet
have been acquired under operating leases. The future minimum lease payments due under noncancellable leases in future years are:
Total Commitments Under Operating
Leases
Not Later than one year
Buildings
Office Equipment
Vehicles
Total
Later than one year and not later than
5 years
Buildings
Office Equipment
Vehicles
Total
Later than 5 years
Buildings
Office Equipment
Vehicles
31 March
2012
£000
31 March
2013
£000
59
1
10
23
0
1
70
0
29
8
0
25
130
37
0
0
0
155
0
0
0
Total
Total Commitments
24
107
0
179
42.2 The Authority as Lessor
Finance Leases: the Authority does not lease out property under terms which would be
classified as finance leases under the terms of the CIPFA Code of Practice. (There were none in
2010/11.)
Operating Leases: the Authority has leased out cafe premises at the Craig y nos Country
Park to provide a catering facility to visitors to the Country Park since April 2011.
45
Statement of Accounts 2012/13
The future minimum lease payments receivable under non-cancellable leases in future years are:
Total Receivables Under Operating Leases
Not Later than one year
Buildings
31 March
2012
£000
31 March
2013
£000
0
0
40
30
0
0
Later than one year and not later than 5
years
Buildings
Later than 5 years
Buildings
Total Receivables
40
30
NOTE 43: Private Finance Initiative and Similar Contracts
The Authority has no PFI or similar contracts. (There were none in 2011/12)
NOTE 44: Impairment Losses
The CIPFA Code of Practice requires the Authority to disclose any impairment losses or
reversals charged to the Surplus or Deficit on the Provision of services and to Other
Comprehensive Income and Expenditure. These disclosures are consolidated in Notes 13 and
14, reconciling the movement in the year in the Property, Plant and Equipment and Intangible
Asset balances.
There were no impairments identified in 2012/13. Land and Buildings were revalued and their
asset lives assessed as at 28 February 2013.
In 2011/12, two items of capital expenditure, involving works to a dam at Craig y Nos Country
Parks and the drainage system at the National Park Visitor Centre, were deemed to be nonenhancing (ie they did not result in a significant increase in asset life or value). They were
therefore charged to the General Reserve in the year.
NOTE 45: Capitalisation of Borrowing Costs
The Authority has no borrowing (none in 2011/12).
NOTE 46: Termination Benefits
The Authority did not terminate the contracts of any employees in 2012/13. It terminated the
contracts of 2 employees in 2011/12, incurring liabilities of £37,354 in respect of staff. See also
note 36
NOTE 47: Pensions Schemes Accounted For As Defined Contribution Schemes
The Authority has no pension schemes accounted for as defined contributions schemes (There
were none in 2011/12).
NOTE 48: Defined Benefit Pension Schemes
As part of the terms and conditions of employment of its officers, the Authority makes
contributions towards the cost of post-employment benefits. Although these benefits will not
46
Statement of Accounts 2012/13
actually be payable until employees retire, the Authority has a commitment to make the
payments that must be disclosed at the time when employees earn their future entitlement. In
accordance with International Financial Reporting Standards, disclosure of certain information
concerning assets, liabilities, income and expenditure relating to pension schemes is required.
The disclosures below relate to the funded liabilities within the Powys County Council Pension
Fund (“the Fund”) which is part of the Local Government Pension Scheme (the “LGPS”). The
funded nature of the LGPS requires Brecon Beacons National Park Authority and its employees
to pay contributions into the Fund, calculated at a level intended to balance the pensions
liabilities with investment assets.
In order to calculate the level of contributions required to meet its share of the Fund’s liabilities
and to obtain the disclosures and calculations required to complete the annual Statement of
Accounts, the Authority uses the services of a qualified actuary; AON Hewitt Limited. The
Authority recognises gains and losses immediately in full through entries in ‘Other
Comprehensive Income and Expenditure. International Financial Reporting Standards require
disclosure of certain information concerning assets, liabilities, income and expenditure relating to
pension schemes
FUNDED BENEFITS: The Authority’s regular contributions to the Fund for the accounting
period to 31st March 2014 are estimated to be £0.52m. In addition, ‘Strain on Fund
Contributions’ may be required.
Assumptions: The latest actuarial valuation of unfunded LGPS benefits took place as at 31
March 2010. Liabilities have been estimated by the independent qualified actuary on an actuarial
basis using the projected unit credit method. The principal assumptions used by the actuary in
updating the latest valuations of the Fund for IAS 19 purposes were:
Principal Financial assumptions (% per annum)
Discount rate
RPI inflation
CPI inflation
Rate of increase in pensions in payment*
Rate of increase to deferred pensions
Rate of general increase in salaries*
31st March
2010
31st March
2011
31 March
2012
31 March
2013
5.5
3.9
n/a
3.8
3.8
5.4
5.4
3.7
2.8
2.8
2.8
5.2
4.8
3.6
2.6
2.6
2.6
5.2
4.5
3.7
2.8
2.8
2.8
4.7
‘* In excess of Guaranteed Minimum Pension increases in payment where appropriate
‘** In addition, allowance is made for the same age-related promotional salary scales as used at the actuarial valuation of the
Fund as at 31March 2010.
Demographic assumptions
Post-retirement mortality
(retirement in normal health)
Males
Year of Birth base table
31 March 2012
31 March 2013
Standard SAPS Normal
Health All Amounts
Standard SAPS Normal
Health All Amounts
Rating to above base table* (years)
0
0
Scaling to above base table rates
110%
110%
Improvements to base table rates
CMI 2009 with a longterm improvement rate of
1.25% p.a.
CMI 2009 with a longterm improvement rate of
1.25% p.a.
47
Statement of Accounts 2012/13
Future lifetime from age 65
(currently aged 65)
Future lifetime from age 65
(currently aged 45)
21.6
21.7
23.4
23.5
Standard SAPS Normal
Health All Amounts
Standard SAPS Normal
Health All Amounts
0
0
Scaling to above base table rates
110%
110%
Improvements to base table rates
CMI 2009 with a longterm improvement rate of
1.25% p.a.
23.8
CMI 2009 with a longterm improvement rate of
1.25% p.a.
23.9
25.7
25.8
Females
Year of Birth base table
Rating to above base table* (years)
Future lifetime from age 65
(currently aged 65)
Future lifetime from age 65
(currently aged 45)
Commutation
31 March 2011
Each member assumed to exchange
35% of the maximum amount
permitted of their past service
pension rights on retirement for an
additional lump sum. Each member
assumed to exchange 70% of the
maximum amount permitted of their
future service pension entitlements,
for additional lump sum.
31 March 2012
Each member assumed to exchange
35% of the maximum amount
permitted of their pre 1 April 2010
pension entitlements for additional
lump sum. Each member assumed to
exchange 70% of their maximum
amount permitted of their post 31
March 2010 pension entitlements, for
additional lump sum.
The approximate split of assets for the Fund as a whole (based on data supplied by the Fund
Administering Authority) is shown in the table below. Also shown are the assumed rates of
return adopted by the Employer for the purposes of IAS 19.
Equities
Property
Government
Bonds
Corporate
Bonds
Cash
Other Assets
Total
Long-term
rate of
return
expected at
31st March
2011
Asset split
as at 31
March
2011
Long-term
rate of
return
expected at
31st March
2012
Asset split
as at 31
March 2012
Long-term
rate of
return
expected at
31st March
2013
Asset split
as at 31
March 2013
% per
annum*
%
% per
annum*
%
% per annum*
%
8.1
7.6
3.1
53.0
7.2
16.2
7.8
7.3
2.8
56.6
6.2
16.2
8.4
7.9
4.4
53.7
6.5
19.5
5.1
10.6
3.7
11.2
3.8
10.5
1.5
8.4
2.6
7.1
1.8
8.1
4.3
8.1
0.9
7.8
2.4
8.1
7.1
100
6.5
100
6.4
100
48
Statement of Accounts 2012/13
* The overall expected rate of return on Fund assets is a weighted average of the individual expected
rates of return
** Other holdings include hedge funds, currency holdings, asset allocation futures and other. The Actuary
has assumed that these will earn a return in line with equities.
The Authority employs a building-block approach to determine the rate of return on fund assets.
Historical markets are studied and assets with higher volatility are assumed to generate higher
returns consistent with widely accepted capital market principles. The assumed rate of return
on each asset class is set out within this note. The overall expected rate of return on assets is
then derived by aggregating the expected return for each asset class over the actual asset
allocation for the fund at 31 March 2013.
Reconciliation of funded status to Balance Sheet
Value as at
31st March
2011
£m
Value as at
31st March
2012
£m
Value as at
31st March
2013
£m
Fair value of assets
10.26
11.30
13.2
Present value of funded defined benefit obligation
14.9
17.47
19.93
Pension asset/(liability) before consideration of
(4.64)
(6.17)
(6.73)
paragraph 58
Adjustment in respect of paragraph 58
0.00
0.00
0.00
Pension asset/(liability) recognised on the
(4.64)
(6.17)
(6.73)
Balance Sheet*
*difference from actual liability shown on the balance sheet is caused by the difference between actual employers
contributions for the year and the value estimated by the actuary for the purposes of this note.
Charges to the Surplus or Deficit on the Provision of Services
Period ending 31st
March 2012
£m
Current service cost
Past service costs
Interest cost
Expected return on assets
Curtailment cost
Settlement cost
Expense recognised in Income and Expenditure
Account
0.42
0.12
0.81
(0.72)
0
0
0.63
Period ending 31st
March 2013
£m
0.49
0
0.85
(0.72)
0
0
0.62
49
Statement of Accounts 2012/13
Changes to the present value of defined benefit obligation during the accounting
period
Period ending
31st March 2012
£m
Period ending
31st March 2013
£m
14.90
0.42
0.81
0.17
1.44
(0.39)
0.12
0
0
0
0
17.47
Opening defined benefit obligation
Current service cost
Interest cost
Contributions by participants
Actuarial (gains)/losses on liabilities*
Net benefits paid out#
Past service costs
Expected return on assets
Business combinations
Curtailments
Settlements
Closing defined benefit obligation
17.47
0.49
0.85
0.17
1.33
(0.39)
0
0
0
0
0
19.93
* Includes changes to the actuarial assumptions
# Consists of net cash flow out of the Fund in respect of the employer, excluding contributions and any death in service lump
sums paid, and including an approximate allowance for the expected cost of death in service lump sums.
Changes to the fair value of assets during the accounting period
Opening fair value of assets
Expected return on assets
Actuarial gains/(losses) on assets
Contributions by the employer
Contributions by participants
Net benefits paid out ##
Net increase in assets from disposals and acquisitions
Settlements
Closing fair value of assets
Period
ending 31st
March 2012
£m
Period
ending 31st
March 2013
£m
10.26
0.72
(0.06)
0.60
0.17
(0.39)
0
0
11.30
11.30
0.72
0.89
0.50
0.17
(0.38)
0
0
13.20
Consists of net cash-flow out of the Fund in respect of the employer, excluding contributions and any
death in service lump sums and including an approximate allowance for the expected cost of death in
service lump sums.
##
Actual return on assets
Period
ending 31st
March 2012
£m
Expected return on assets
Actuarial gains/(losses) on assets
Actual return on assets
0.72
(0.06)
0.66
Period
ending 31st
March 2013
£m
0.72
0.89
1.61
50
Statement of Accounts 2012/13
Analysis of amount recognised in Other Comprehensive Income and Expenditure
Period ending Period ending
31st March
31st March
2012
2013
£m
(£m
(1.50)
0
(1.50)
Total actuarial gains/(losses)
Adjustment in respect of paragraph 58
Total gain (loss) in CIES
0.44
0
0.44
History of experience gains and losses
Experience gains/(losses) on asset
2008/09
2009/10
2010/11
2011/12
2012/13
£m
%
(1.64)
1.26
(0.33)
(0.06)
0.89
(22.5)
13.4
(3.2)
(0.5)
6.7
Experience gains/(losses)
on liabilities ##
£m
%
(0.03)
0.09
0.64
(0.07)
0.03
(0.3)
0.6
4.3
(0.4)
0.2
## This item consists of gains /(losses) in respect of liability experience only – and excludes any change
in liabilities in respect of changes to the actuarial assumptions.
UNFUNDED SCHEMES
The disclosures below relate to unfunded pension arrangements established by Brecon Beacons
National Park Authority. These are termination benefits made on a discretionary basis upon
early retirement in respect of member of the LGPS. Brecon Beacons National Park Authority
recognised gains and losses in full, immediately through Other Comprehensive Income and
Expenditure.
In accordance with International Financial Reporting Standards, disclosure of certain information
concerning assets, liabilities, income and expenditure relating to pension schemes is required.
Contributions for the accounting period ended 31 March 2013: In this period, the Authority
expects to pay £0.00m directly to beneficiaries.
Assumptions: The latest actuarial valuation of unfunded LGPS benefits took place as at 31
March 2011. Liabilities have been estimated by the independent qualified actuary on an actuarial
basis using the projected unit credit method. The principal assumptions used by the actuary in
updating the latest valuation results for IAS 19 purposes were:
Principal Financial assumptions (% per annum)
Discount rate
RPI inflation
CPI inflation
Rate of increase in pensions in payment
31st March 2011
31st March 2012
31st March 2013
5.5
3.6
2.7
2.7
4.6
3.4
2.4
2.4
4.1
3.5
2.6
2.6
51
Statement of Accounts 2012/13
Demographic assumptions
Post-retirement mortality
(retirement in normal health)
Males
Year of Birth base table
31 March 2012
31 March 2013
Standard SAPS
Normal Health All
Amounts
Standard SAPS
Normal Health All
Amounts
0
0
Scaling to above base table rates
110%
110%
Improvements to base table rates
CMI 2009 with a
long-term
improvement rate of
1.25% p.a.
21.6
CMI 2009 with a
long-term
improvement rate of
1.25% p.a.
21.7
Standard SAPS
Normal Health All
Amounts
Standard SAPS
Normal Health All
Amounts
0
0
Scaling to above base table rates
110%
110%
Improvements to base table rates
CMI 2009 with a
long-term
improvement rate of
1.25% p.a.
23.8
CMI 2009 with a
long-term
improvement rate of
1.25% p.a.
23.9
Rating to above base table* (years)
Future lifetime from age 65
(currently aged 65)
Females
Year of Birth base table
Rating to above base table* (years)
Future lifetime from age 65
(currently aged 65)
Reconciliation to balance sheet
Value as at
31st March
2011
(£m)
Present value of defined benefit obligation
Pension liability recognised in the Balance Sheet
0.07
(0.07)
Value as at
31st March
2012
(£m)
Value as
at 31st
March
2013
(£m)
0.07
(0.07)
0.07
(0.07)
Charges to the surplus or deficit on the provision of services
Current service cost
Past service costs
Interest cost
Expected return on assets
Curtailments
Settlements
Expense recognised
Period ending 31st
March 2012
£m
Period ending 31st
March 2013
£m
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
52
Statement of Accounts 2012/13
Changes to the present value of unfunded liabilities during the accounting period
Period ending
31st March 2012
£m
Period ending
31st March 2013
£m
0.07
0.00
0.00
0.01
(0.00)
(0.01)
0.00
0.07
0.00
0.00
0.00
(0.00)
0.00
0.00
0.00
0.00
0.00
0.00
0.07
0.07
Opening unfunded defined benefit obligation
Current service cost
Interest cost
Actuarial (gains)/losses on liabilities#
Net benefits paid out
Past service cost
Net increase in liabilities from disposals and acquisitions
Curtailments
Settlements
Opening present value of liabilities
# includes changes to the actuarial assumptions
Analysis of amount recognised in Other Comprehensive Income and Expenditure
Period ending 31st
March 2012
Period ending 31st
March 2013
(£m)
(£m)
(0.00)
(0.00)
0.00
0.00
Total actuarial gains/(losses)
Total gain (loss)
History of present value of defined benefit obligation and surplus/deficit
Present value of defined benefit
obligation
Surplus/(Deficit)
As at 31st
March
2009
(£m)
As at 31st
March
2010
(£m)
As at 31st
March
2011
(£m)
As at 31st
March
2012
(£m)
As at 31st
March
2013
(£m)
0.06
0.07
0.07
0.07
0.07
(0.06)
(0.07)
(0.07)
(0.07)
(0.07)
Period
ending 31st
March
2009
(£m)
Period
ending 31st
March
2010
(£m)
Period
ending 31st
March
2011
(£m)
Period
ending 31st
March
2012
(£m)
Period
ending 31st
March
2013
(£m)
0.00
0.00
0.00
0.00
0.00
History of experience gains and losses
Experience gains/(losses)#
# This item consists of gains /(losses) in respect of liability experience only and excludes any change in
liabilities in respect of changes to the actuarial assumptions used.
NOTE 49: CONTINGENT LIABILITIES
No contingent liabilities have been identified for 2012/13 (none for 2011/12).
53
Statement of Accounts 2012/13
NOTE 50: CONTINGENT ASSETS
No contingent assets have been identified for 2012/13 (none for 2011/12).
NOTE 51: NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL
INSTRUMENTS
The Authority’s activities expose it to two principal financial risks:
 Credit risk – the possibility that other parties might fail to pay amounts due to the
Authority
 Liquidity risk – the possibility that the Authority might not have funds available to meet
its commitments to make payments
 Market risk – the possibility that financial loss might arise for the Authority as a result of
changes in such measures as interest rates and stock market movements.
The Authority, being debt-free and placing its funds, in accordance with its Treasury Management
Strategy, in instantly accessible accounts or on short-term deposit, with a bank which has a very
high credit rating has minimised its exposure to the risk of failure by another party to repay
funds deposited.
The risk of losses from the failure of customers to pay the Authority is minimised through the
Authority’s debt management procedures. The majority by value of the Authority’s debtors are
other public bodies which are considered to have good credit ratings. (See Note 18: Debtor
Balances).
As the Authority has funds in immediately accessible bank accounts and in short-term deposits, it
has limited exposure to liquidity risk. Interest rates are regularly reviewed and consideration
given to placing funds on deposit should interest rates become more favourable.
The Authority is not exposed to market risk except in relation to its share of the Powys Pension
Fund. See Note 47 for further details.
54
Statement of Accounts 2012/13
APPENDIX 1: ALLOWANCES/SALARIES PAID TO AUTHORITY MEMBERS 2012/13
Authority Member
Powys County Council Members:
Cllr E Morgan
Cllr K Silk
Cllr G Ratcliffe
Cllr AMC Weale
Cllr MJ Jones
Cllr J Steadman
Cllr RH Mills
Cllr RG Brown
Cllr P Ashton
Cllr C Davies
Cllr J Holmes
Cllr G Hopkins
Cllr D Meredith
Cllr K Pathak
Cllr P Pritchard
Monmouthshire County Council Members:
Cllr E Saxon
Cllr A C James
Cllr M Hickman
Ann Webb
Carmarthenshire County Council Members:
Cllr Andrew James
Cllr H E Wyn1
Cllr D H Morgan
Cllr G Davies
Merthyr Tydfil County Borough Council Members:
Cllr Howard Barrett
Cllr R Thomas
Torfaen County Borough Council Members:
Cllr T Huish
Cllr A Furzer
Blaenau Gwent County Borough Council Members:
Cllr D L Elias
Cllr M Cross
Cllr R Pagett
Rhondda Cynon Taff CBC Member:
Cllr J S Ward
Welsh Assembly Government Nominees:
Mrs C Howell
Prof, A Lovell
Ms M Doel
Mrs M Underwood
Mr M Buckle
Mrs J James
Mr E J Evans
Mr I Rowat
Standards Committee Member:
Mr R Chater
Total
Salary/Basic and
Attendance
£
3394
55
1499
109
2983
53
2
2
3020
3142
3020
3349
2967
162
3088
Senior
Salary/Special
Responsibility
£
2124
434
1580
Total
£
5518
55
1499
543
2983
53
2
2
3020
3142
3020
4929
2967
162
3088
109
109
2967
2967
109
109
2967
2967
3020
2
162
2860
3020
2
162
2860
2
3020
2
3020
53
2913
53
2913
109
2367
473
109
2367
473
3197
3197
3197
3822
3571
3143
3143
3410
2930
3037
99
77,527
1830
5516
11,484
3197
5652
3571
3143
3143
8925
2930
3037
99
89,010
55
Statement of Accounts 2012/13
APPENDIX 2: GOVERNANCE STATEMENT
BRECON BEACONS NATIONAL PARK AUTHORITY
ANNUAL GOVERNANCE STATEMENT
2012/13
56
Statement of Accounts 2012/13
I.
Introduction
The Brecon Beacons National Park Authority (“the Authority”) is responsible for ensuring
that its business is conducted in accordance with the law and proper standards, that public
money is safeguarded and properly accounted for and used economically, efficiently, and
effectively. It is a Welsh improvement authority under section1 of the Local Government
(Wales) Measure 2009 and as such has a general duty under section 2 to make arrangements
to secure continuous improvement in the way in which its functions are exercised.
In 2010/11 the Authority approved a Code of Corporate Governance, which is consistent
with the principles of the CIPFA/ SOLACE Framework ‘Delivering Good Governance in
Local Government’. This guidance recommends that the review of effectiveness of the
system of internal control that local authorities are required to undertake in accordance
with the Accounting and Audit Regulations should be reported in an Annual Governance
Statement. In Wales the inclusion of the Annual Governance Statement in the Statement of
Accounts is voluntary. In 2009/10 CIPFA also published an “Application Note to Delivering
Good Governance in Local Government: A Framework”. This note has been developed to
advise on the application of the “Statement of the Role of the Chief Financial Officer on
Local Government” under the CIPFA/SOLACE Framework “Delivering Good Governance in
Local Government”. The Authority has decided to adopt the CIPFA framework and Annual
Governance Statement approach for 2012/13.
2. The purpose of the Governance framework
The governance framework comprises the committees, systems and processes, cultures 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.
Internal controls are a significant part of that framework and whilst it is acknowledged that
risk cannot be completely eliminated, thoughtful, anticipatory consideration of key
operational and strategic risks enables the Authority to feel confident that it has done all it
can to minimise the incidence of harmful events and risks affecting the Authority, whilst the
notion of robust organisational resilience is seen as the primary indicator of the Authority’s
ability to respond positively should damaging events occur.
3.
Review of Effectiveness
The Authority is responsible for conducting an annual review of the effectiveness of its
governance framework including the system of internal control. This review is informed by
the work of the Authority, Members and its Committees, internal and external auditors,
other review agencies (as appropriate) and senior managers who have responsibility for the
development and maintenance of the internal control environment. The review of
effectiveness is based on the seven principles of the Code of Corporate Governance.
4.
Overview of Year
57
Statement of Accounts 2012/13
The local government elections in May 2012 resulted in more than 50% change in
membership for the Brecon Beacons National Park Authority (‘the Authority’). Through
its comprehensive induction and development programme and the strong leadership shown
by the Chairman and other returning members, the Authority has continued to
demonstrate and improve its good governance. In particular it has webcast all meetings of
the Authority and its committees and made them available as archives. The response to
increased accessibility to governance and the resulting transparency has been very positive,
with viewing figures (April 2012 – April 2013) totalling 497 live and 7430 archive viewings.
Members and officers have given presentations at external meetings, providing advice and
sharing the experience with a wide range of local authorities in Wales. The Authority has
also hosted visits from Merthyr Tydfil, Carmarthenshire and Snowdonia National Park
Authority to view the live webcasting. Officers from other authorities have viewed the
equipment and sought subsequent advice by telephone. This interest has increased
following the announcement of Welsh Government funding for webcasting and remote
access.
The Authority has also embedded the scrutiny model developed during its Welsh
Government funded Scrutiny project in 2011/12 and has carried out in depth scrutiny
reviews on two of its improvement objectives, involving members of the public as members
of the Scrutiny Panels but also in gathering evidence on the effect of service delivery. All
reports are published on Authority agendas and on the website. In addition the Audit and
Scrutiny Committee receives quarterly detailed reports on each improvement objective on
a rota basis, providing further assurance to members and the public.
5. Internal Audit Annual Report
Following a competitive tendering process, Deloitte were appointed as the Authority’s
internal auditors for a three year period. The initial audits by Deloitte established the
following levels of assurance for the Authority:
Corporate Governance
Full Assurance
Financial systems
Substantial Assurance
Risk Management
Substantial Assurance
IT General Controls
Substantial Assurance
The high levels of assurance demonstrate the Authority’s commitment to compliance and
good governance. In their annual report the following overall assurance was given: “Based
on the work we have undertaken during the year we are able to conclude that the Brecon
Beacons National Park Authority (the Authority) has a basically sound system of internal
control which should provide substantial assurance regarding the achievement of the
Authority’s objectives.”
6. External Audit
The Wales Audit Office (WAO) Annual Improvement Report published in April 2013
concluded that the Authority had made good progress in how it is managing and delivering
improvement but that it recognises that there are still areas where there is more to do.
WAO also issued an unqualified audit opinion on 28/9/12 on the accounting statements
(Audit of Financial Statements – ISA260 – report) and concluded that the Authority has
appropriate arrangements in place to secure economy, efficiency and effectiveness.
7. Recommendations from Audit Reports in 2011/12
In its Annual Governance Statement of 2011/12 the Authority committed to achieve the
following improvements identified by internal and external audit:
Governance Issues
What we did to address
Audit Assurance
Identified in 2011/12
these issues in 2012/13
received in 2013
Issues identified in WAO Annual Improvement Report published January 2013
P1: Improve the Authority’s
Results Based Accountability The Authority’s approach to
ability to monitor and evaluate used to define all objectives self-evaluating its
improvement by focusing on
in 2012/13. Detailed scrutiny performance continues to
priorities rather than just
reviews completed on two
improve despite weaknesses
58
Statement of Accounts 2012/13
Governance Issues
Identified in 2011/12
service performance and being
clear about the benefits of its
activities
What we did to address
these issues in 2012/13
improvement objectives and
a rota of detailed reports to
Audit and Scrutiny
Committee on the
remaining improvement
objectives.
Audit Assurance
received in 2013
with some performance
indicators, which the
Authority is addressing.
The Authority has
established a programme to
ensure members can
scrutinise progress against
improvement objectives
P2: Build on improvement to
RBA methodology has been Objectives were generally
focus on and deliver
used to identify measurable
focused more on outcomes,
measurable outcomes for the
outcomes in 2012/13
rather than on actions.
Park and people
Established measures and
targets for improvement
objectives
P3: Forward looking
The draft Corporate
The Corporate
improvement plans are
Improvement Plan was
Improvement Plan is a
published much earlier after
approved by the Audit and
significant improvement
the start of the financial year
Scrutiny Committee on 19
over previous plans,
April 2013 and approved by although some measures of
the Authority on 3 May
success could be more
2013
relevant.
Issues identified by the Internal Audit Opinion on Internal Controls - 2012
Planning process for internal
Recommended approach
Internal Audit opinions
audit work should be risk
taken by Deloitte in
were ‘full’ for corporate
based to ensure maximum
determining areas which
governance and ‘substantial’
benefit from limited resources. constitute a risk to effective for the remaining audits.
Risk Register needs to actively service delivery or good
Internal Audit annual report
reflect areas that threaten
governance. Audits included for 2012 concluded the
effective delivery of the
corporate governance, risk, Authority has a basically
Authority’s services
financial and IT controls
sound system of internal
control which should
provide substantial
assurance regarding the
achievement of the
Authority’s objectives
The Authority should ensure
The Authority has taken a
WAO Annual Audit Letter
it has effective performance
more commercial approach (November 2012)
management frameworks in
to service delivery,
concluded that the
place supported by meaningful particularly in its centres
Authority has appropriate
measures to demonstrate
(see regular trading reports arrangements in place to
value for money in all services to Audit and Scrutiny
secure economy, efficiency
Committee). The new
and effectiveness
commercial management
structure is well embedded
for the National Planning,
Access and Rights of Way
Committee Visitor Centre
and the TICs (evidenced by
regular trading reports to
Audit and Scrutiny
Committee). Further
improvements to reporting
to be introduced in 2013/14.
59
Statement of Accounts 2012/13
Governance Issues
Identified in 2011/12
What we did to address
these issues in 2012/13
Better linkage of objectives
to resources in 2012/13
which has continued into
current year with objectives
linked directly to priority
actions in the National Park
Management Plan
Audit Assurance
received in 2013
8. Detailed Review of Effectiveness
The Authority has reviewed its processes under each of the seven principles in its Code of
Corporate Governance (NB. text in bold denotes an existing document or policy):
60
Statement of Accounts 2012/13
How will we comply with the
Systems, processes and
Monitoring arrangements
How will we know it’s working How have we or how will we
principles and requirements
documents in place
/ not working?
address any gaps?
of good governance?
(Who and by when?)
Principle 1: Focusing on the Authority’s purpose, on outcomes for the community including citizens and service users and creating and implementing a vision for
the local area
National Park purposes and vision
Over the life of the NPMP there is Corporate Management Team
 NPMP Working Group
Exercising strategic
for
the
Park
are
now
enshrined
in
a prioritised programme of
(CMT) and Directorate work plans –
(member/officer)
leadership by developing and
National Park Management Plan
objectives linked to the NPMP –
implementation of objectives on
clearly communicating the
(NPMP), developed following full
failure
to
achieve
these
will
be
annual basis and review of work not
 Performance reports to Audit
authority’s purpose and
consultation with partners,
picked up through the PMR
completed (which will roll forward to
and Scrutiny Committee (ASC)
vision and its intended
stakeholders and communities
process initially and through
next year as resources allow)
NPA goals = NPMP themes, with
budget monitoring (particularly
The Authority is currently trying
outcome for citizens and
 Reviewed in officer PMRs each
priority areas for action allocated
capital expenditure against
different levels of partnership (eg.
service users
quarter.
as corporate and
projects)
destination marketing) and these will
improvement objectives.
Partnerships are in place to
be reviewed in 2014/15. A view will
 Budget monitoring by CMT and deliver some actions – feedback
NPA sets priorities, approves
be taken at that point as to whether
ASC
objectives each year and selects
from these partners
a partnership protocol is needed.
improvement objectives (two of
Brecon Beacons Sustainable
which will be subject to a full
Destination Partnership
scrutiny review) – all published on
Fforest Fawr Geopark
website
Partnership
Supporting documents:
NPMP, NPMP Priority
Actions, new Corporate Plan
for 2013/14, Ffynnon, (Scheme
of Delegation and Terms of
Reference)
Performance is communicated to
comply with Local Government
Measure (2009) requirements and
financial requirements of the
Accounts and Audit Regulations
2005 as amended by the Accounts
and Audit (Wales) Amendment
Regulations 2010
The Corporate Business Cycle
sets the decision making timescale
into a framework to comply with
WAO deadlines.
Corporate Improvement Plan
(CIP) (forward looking in May,
backward looking in October each
year) outlines what the Authority
intends to do and whether it has
achieved objectives from the
previous year. Members involved
in process through ASC and
publishing draft for all members to
comment on.
Statement of Accounts (SoA)
published in draft by 30 June each
Draft CIP, SoA and AGS all
reviewed by CMT and Audit and
Scrutiny Committee before being
presented to the Authority for
approval.
The Wales Audit Office (WAO)
will report on failure to comply
with Local Government Measure
requirements. Issues are
addressed by CMT via an action
plan arising out of WAO reports
for inclusion in the AGS with
timescales and responsible officers
identified.
Ffynnon is used to record data and
gaps are regularly reported to
CMT.
Responsible officers and timescale
identified on the action plan in AGS
and monitored by CMT.
CMT needs to avoid late
publication of the CIP by ensuring
officers comply with reporting
requirements
Compliance by officers in
reporting performance on Ffynnon
or to Committee needs to be
strengthened
61
Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
Systems, processes and
documents in place
Monitoring arrangements
How will we know it’s working
/ not working?
year via ASC and NPA agendas,
and signed off by the Chairman
and Section 151 Officer. Includes
the Annual Governance
Statement (AGS)
Quality of Service is measured and Measurable, outcome focused and
ASC monitor performance and
Through PMRs and quarterly
reviewed and any failure identified
resourced objectives in the CIP
CMT manage this through the
reports to ASC.
and addressed
Two detailed scrutiny reviews
PMR process for officers
Through recommendations arising
carried out each year linked to
Scrutiny monitored by ASC and all out of scrutiny reviews
improvement objectives, giving
reports received in order to make Level of complaints or feedback
internal and external perspective
recommendations to NPA.
from users of the service.
and aimed at improving service
Approved action plans are then
2012/13 – increase in complaints
delivery. Reports on all
monitored by Audit and Scrutiny
to 40 (21 last year) but all but 3
improvement objectives delivered
Committee until all actions
processed within target time and
to ASC on a rota basis during the
completed.
all but one closed (one ongoing)
year.
CMT and ASC monitor complaints
Complaints policy and
at each meeting.
procedures in place
Principle 2: Members and Officers working together to achieve a common purpose, with clearly defined functions and roles
Roles and Responsibilities are
Role descriptions for all
Member Development Working
Members carry out their roles
identified and understood
members, Senior Salary holders,
Group reviews roles of members
appropriately
Member Champions, and members and makes recommendations to
Level of complaints to
representing the Authority on
the NPA.
Ombudsman / under the Member
outside bodies. Roles are covered Officer role descriptions are
Officer Protocol. No complaints
in the Member Induction
reviewed when postholder leaves
pending.
Framework.
or when duties change
Personal Development Interview
Role descriptions in place for all
process for members and the PMR
senior officers which set out their
process for officers.
roles and responsibilities.
Appropriate Delegation
arrangements are in place
Scheme of Delegation and
Terms of Reference sets out
role of the Authority and each
committee as well as delegation to
senior officers.
Reviewed every two years in detail
(quick review each year) by
Corporate Governance Task and
Finish Group who make
recommendations to NPA
No challenges that decisions have
been made without reference to
the Scheme
Progress on projects potentially
delayed through inadequate
How have we or how will we
address any gaps?
(Who and by when?)
Addressing poor performance or
complaints/comments on the quality
of service delivery
Need for more feedback from the
public – full residents survey to be
carried out early in 2013/14 –
Sponsor is the Director of
Countryside and Land
Management
Member role description not
reviewed for some years. Currently
being reviewed by ANPA/Member
Services network. Member
Development Working Group to
review all role descriptions in
2013/14.
Democratic Services Manager (by
31 March 2014): No protocols in
place for member partnership
working. Work scheduled for
2013/14 includes developing role
descriptions for each external
representation to review value of
the partnership and ensure clear
reporting lines
Each committee is responsible for
reviewing its effectiveness:
Democratic Services Manager /
Corporate Governance Task and
Finish Group to co-ordinate a
62
Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
Responsibility for financial advice is
identified and in place
Appropriate procedural advice is
provided at all meetings of the
Authority and its committees
Systems, processes and
documents in place
Monitoring arrangements
How will we know it’s working
/ not working?
Any urgent changes needed are
logged on the Action Tracking
System from the relevant
committee and a revised version
of the Scheme taken to NPA for
approval.
Decisions made under delegation
are reported to the next
committee.
CEO responsible for operational
management (job description)
A Section 151 Officer is in place
(Local Government Act 1972)
who complies with the CIPFA
Statement on the role of the Chief
Financial Officer in Local
Government). He attends all
Audit and Scrutiny Committee and
Authority meetings to give
financial advice to members, and
works with the Finance Manager
to ensure compliance
CEO has twice yearly performance
management reviews with the
Chairman and maintains regular
contact with the Chairman at all
times.
delegation arrangements
Section 151 Officer is responsible
for the proper administration of
the Authority’s financial affairs and
advises on an effective system of
internal financial control. He will
report under section 114 (Local
Government Act 1988) to the
Authority if it embarks on unlawful
financial activity or expenditure
beyond its resources, or failure to
set or keep a balanced budget.
Audit and Scrutiny Committee
monitor internal and external
audit reports and actions and
challenge process where necessary
WAO financial audits
No legal or financial governance
challenge to decisions made
Budget setting and monitoring –
the S151 Officer gives assurance at
Authority and ASC meetings.
Internal audit reports carried out
in 2012/13 with ‘Substantial
Assurance’ level:
Gives procedural advice to the
Authority and its committees
Number of complaints to the
Ombudsman (none in 2012/13)
No referrals under the Member
Officer Protocol
No legal challenge on decisions
made
The Solicitor to the Authority acts
as Monitoring Officer (Section 5 of
the Local Government and
Housing Act 1989 as amended).
Reciprocal arrangement with the
Monitoring Officer of
Pembrokeshire Coast NPA to act
How have we or how will we
address any gaps?
(Who and by when?)
review of committee effectiveness
and bring recommendations to
NPA as needed – by end of 2014.
Pilot review of Audit and Scrutiny
Committee currently under
discussion
Action plans from Financial
Systems and Revenue and
Receivable internal audits specify
officer responsibility for all actions
with a timescale.
 Financial Systems
 Revenue and
Receivables
WAO issued an unqualified
audit opinion on 28/9/12 on the
accounting statements (Audit
of Financial Statements –
ISA260 – report) and
concluded that the Authority
has appropriate arrangements
in place to secure economy,
efficiency and effectiveness.
63
Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
A constructive working
relationship exists between
Members and Officers
A Schedule of Member
Remuneration is in place to
comply with the Local
Government (Wales)
Measure 2011, Sections 142
and 147
Systems, processes and
documents in place
as Deputy Monitoring Officer
A Member Officer Protocol is
in place which is included in the
Member Development
Framework and addressed
during the induction period.
Schedule of Member
Remuneration
NJC payscales apply for staff, and
JNC for CEO and Directors
Monitoring arrangements
How will we know it’s working
/ not working?
How have we or how will we
address any gaps?
(Who and by when?)
Reviewed in 2012 by Corporate
Governance Task and Finish
Group and NPA.
High standards of behaviour
monitored by Standards
Committee and encouraged by
members chairing meetings
No complaints have been received
in relation to the Member Officer
Protocol.
Meetings are carried out in a spirit
of constructive challenge and
recognition of and respect for
respective roles
Webcasting provides evidence
While the schedule is in place
there have been concerns about
the impact on attendance which
has decreased by 5% for NPA, 25%
for PAROW and 23% for ASC
since the new annual allowance
took effect in June 2012 (9 months
of the new system).
The protocol will be reviewed every
two years unless any issues arise in
the interim.
Independent Remuneration Panel
for Wales now set the levels of
remuneration and monitor
implementation of the Schedule
Feedback will be given to the IRPW
at the pending meeting with senior
members and officers
Principle 3: Promoting Values for the Authority and demonstrating the values of good governance through upholding high standards of conduct and behaviour
Strong leadership
Role descriptions are in place
Members challenge poor
A climate of openness,
for Chairs, Deputies and Member
performance. The Authority
accountability and respect is
Champions
establishes member officer
fostered by the Chairman and all
Shared values are developed
working groups to address issues
members – evidenced via
through the induction period and
and bring recommendations to the webcasts of NPA, ASC and
promoted in all meetings
Authority to improve performance PAROW meetings.
Member development module on
No complaints to the Ombudsman
chairing skills delivered
about members.
High standards of conduct are
expected of all members and
officers and protocols provide the
framework to support this
Code of Conduct (Members *
and Officers)
Member Officer Protocol*
Planning Protocol*
Anti-fraud and corruption
policy
Complaints procedure
Whistleblowing policy
Terms of Reference for the
Standards Committee
Role descriptions for all
All members receive mandatory
code of conduct training as part of
the core induction. Standards
monitored by the Monitoring
Officer, Standards Committee, the
CEO (as Proper Officer) and the
public.
Monitoring Officer ensures
compliance with appropriate
ethical legislation and standards
*Reviewed in 2012 and adopted by
The Authority responds to
changes in legislation or practice
by reviewing or developing
protocols or policies. See next
column
Additional member development
to be delivered as required by
legislation or changes in good
practice to include Local
Resolution, Blanket Dispensations
and a protocol for members
applying for dispensation in
relation to an issue relating to
their appointing authority
(approved at NPA on 3 May 2013)
64
Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
Clear, accountable decision making
Systems, processes and
documents in place
Monitoring arrangements
members and for Chairs
All documents published on the
website
All decisions taken in line with the
Scheme of Delegation and
Terms of Reference
Public Speaking Scheme
All meetings of the Authority and
its committees are webcast live
and available via archive
Meetings operate in line with
Standing Orders
Whistleblowing policy
the Authority on 28 September
2012
Members challenge process (eg.
procurement) or standing orders
Decision and Action Tracking
systems for NPA, ASC and
PAROW – monitored by CMT
and ASC at each of their meetings,
and Directors held to account if
actions not completed – all in
public domain. Decisions from
each meeting published on
Members Portal after each
meeting to keep all members
informed of decisions
How will we know it’s working
/ not working?
How have we or how will we
address any gaps?
(Who and by when?)
Legal or financial challenge
Complaints to the Ombudsman re
alleged maladministration
Internal Audit Report on
Corporate Governance in
2012/13 received Full Assurance.
Changes to regulatory documents as
required
Action plan will be monitored by
CMT and ASC, and reviewed by
Deloitte in 2013/14
Principle 4: Taking informed and transparent decisions which are subjective to effective scrutiny and managing risk
A scrutiny process is in place
Scrutiny policy
The panels comprise external
Four rigorous scrutiny studies
Two detailed scrutiny reviews
experts and members of the public have been carried out to date,
carried out by panels of members
who have expressed interest,
resulting in action plans for
each year linked to improvement
providing valuable objectivity.
improvements to services.
objectives – aim to identify areas
Also an officer from a different
After only one year this it may be
for improvement in service
directorate sits on the panel.
too early to assess effectiveness of
delivery and to provide evidence
Scrutiny function is overseen by
the process. Unlike local
for WAO. All final reports to
Audit and Scrutiny Committee,
authorities scrutiny is carried out
ASC then recommendations to
who approve recommendations
by members, which places
NPA as the final arbiter. All
from scrutiny studies to the
considerable demands on member
published on website. Public
Authority
availability and expertise. We are
invited to vote on topics and to
working to build capacity but
participate on panels.
changes in membership (over 50%
Additional detailed reports on one
in 2012) cannot be avoided. The
improvement objective per
NPA recognises the benefits of
quarter made to ASC.
scrutiny but also that it provides
challenges not experienced by
other local authorities.
Positive feedback from service
users and the public who have
contributed to the scrutiny study
and increased number of people
volunteered for the first scrutiny
Annual evaluation of scrutiny
(process and the outcomes) yet to
be carried out for 2012/13.
65
Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
Documenting decisions
Decision making complies with
Code of Conduct
A Complaints Process is in place
and actively used by the public
Systems, processes and
documents in place
Decision and Action Tracking
systems for NPA, ASC and
PAROW – Decisions from each
meeting published on Members
Portal to keep all members
informed of decisions
All agendas published on the
website 4 clear working days
before each meeting which include
minutes of the last meeting
Training is provided for members
on declarations of interest.
Standing item on all agendas, and a
form to record all declarations is
circulated at each meeting
together with guidance. Forms
filed with attendance sheets,
recorded on member database and
in the minutes.
New protocols agreed in 2013
regarding blanket dispensations,
local resolution and dispensations
for members in relation to their
appointing authorities
Complaints Policy and
downloadable forms on the
website and hard copies on
request. Complaints are dealt
Monitoring arrangements
Decisions and actions monitored
by CMT and ASC at each of their
meetings, and Directors held to
account if actions not completed –
all in public domain on agendas
Monitoring Officer and/or Solicitor
available at all meetings to give
advice to individual members or
the membership as a whole
Audit and Scrutiny Committee
monitor complaints at each
meeting and challenge any delays in
addressing complaints
How will we know it’s working
/ not working?
of 2013/14. To date 217 individuals
and 15 organisations have engaged
with the scrutiny process.
Actions plans are produced out of
each scrutiny study and monitored
by ASC.
WAO Annual Improvement
Report issued April 2013 noted
this ‘ new innovative approach that
greatly strengthens the Authority’s
approach to scrutinising its
performance and to help identify
areas for improvement.’
Challenge from the Authority and
its committees if decisions not
implemented
Items recurring on Decision and
Action reports to ASC – officers
are called to account for these
Complaints from public
Inability to provide information
requests under Freedom of
Information Act
Legal or financial challenge
Complaints to the Authority
Complaints to the Ombudsman
Complaints of delay in processing
complaints or increase in
complaints.
2012/13 – increase in complaints
How have we or how will we
address any gaps?
(Who and by when?)
No evidence to suggest process are
not working, and Deloitte internal
audit report on corporate
governance gave a ‘full assurance’
Member on Member complaints will
now go to the Standards Committee
under the new Local Resolution
Protocol approved at the NPA on 3
May 2013.
Review process in response to
complaints as required
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Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
Systems, processes and
documents in place
Monitoring arrangements
with in a timely, efficient and
effective way
Decision making is informed by
relevant and timely information
Risk Management is embedded
into the culture of the organisation
Detailed reports for decision
which assess impact on climate
change, equalities, financial, staffing
and improvement. Large
consultative documents are placed
on the Members Portal some
weeks in advance of the meeting
to give members additional time
for consideration and to raise any
issues with officers before a draft
is presented for decision.
All agendas published in line with
Standing Orders (4 clear
working days)
Corporate Business Cycle
provides a prompt for the
regulatory and audit business for
each year – circulated to members
and published on the website –
feeds into the Agenda Builder
for each Authority and committee
meeting
Decision reports are reviewed by
the Solicitor and CEO prior to
publication, and finance reports by
the Section 151 Officer through
the Finance Manager
Risk Strategy currently being
developed through member officer
workshops and subsequent
training for officers
Risk Register maintained on
Ffynnon and reviewed quarterly by
CMT who make recommendations
to Audit and Scrutiny Committee
on any proposed changes in
scoring
It is the responsibility of members
to challenge officers if they believe
the quality of information they
receive is inadequate.
An agenda builder logs items for all
committees and cross references
between committees to provide an
audit trail. Reviewed by CMT at
each meeting. Effectively manages
agendas in terms of the amount of
business to be considered and to
ensure timely decisions are made
to meet statutory deadlines
By CMT and ASC on quarterly
basis
How will we know it’s working
/ not working?
How have we or how will we
address any gaps?
(Who and by when?)
to 40 (21 last year) but all but 3
processed within target time and
all but one closed (one ongoing)
Failure to comply with statutory
deadlines (Wales Audit Office,
Welsh Government) or Standing
Orders
Decisions deferred due to
inadequate or complete
information
No challenges to this in 2012/13.
Mitigating actions and regular
review ensure that risk is managed
to an acceptable level
Failure to identify and manage risk
may result in legal challenge to the
Authority.
Internal Audit report on risk
gave ‘ Substantial Assurance’ but
recommended the Authority
should have a Risk Management
Strategy
Complete the action plan outlined
in the Internal Audit Report by 30
September 2013 (IT and Systems
Manager)
67
Statement of Accounts 2012/13
How will we comply with the
Systems, processes and
Monitoring arrangements
principles and requirements
documents in place
of good governance?
Principle 5: Developing the capacity and capability of members and officers to be effective
A comprehensive induction and
Member Development
Member Development Working
continuing development
Strategy
Group
programme is in place for
Member Development
The Authority approves the
members
Framework
strategy, framework and the
Member Development
member development programme
Programme 2012/13
each year based on a training
4-5 year programme which equips
needs analysis (done through
members for the roles they take
member Personal Development
on eg. Chairing skills. Shadow
Interviews – PDIs)
roles created for those who want
to grow into roles and learn from
a more experienced member –
this supports succession planning
In their PDIs members are
encouraged to think about future
roles they might like to take on,
with the emphasis on benefit for
the organisation but also for the
member
A comprehensive induction and
development programme is in
place for officers
The Authority aims to involve the
Community (links to principle 6
below)
Personal 1-1 Induction process for
each new member of staff
Personal Development Folder for
each employee at induction
CEO Inductees presentation
New starter Tour of the Park
Area Advisory Forums
The public and representatives of
partner organisations are
encouraged to participate in
scrutiny studies
Public speaking scheme
Community Council Charter
Partnership Working
Performance Management Reviews
include a review of training needs
based on organisational need
The AAFs are currently under
review due to low attendance by
external members – meet twice a
year. The Authority is seeking
evidence of the value of the
forums either to the Authority or
the public, taking into account the
range of ways in which we engage
with the public and interest
groups.
The community will be invited to
join in the management of tourism
via the Rural Alliances project and
the Brecon Beacons Sustainable
How will we know it’s working
/ not working?
How have we or how will we
address any gaps?
(Who and by when?)
Evaluation of induction
programme in 2012 elicited very
positive feedback
Poor attendance is addressed
through the PDI process
The Authority currently holds the
WLGA Basic and Advanced
Charter for Member Support and
Development and will reapply for
this in 2014 subject to the
Authority’s agreement.
The WAO Annual Improvement
Report issued April 2013
recognised the achievement of the
induction programme and the role
of the Chairman in ensuring that
the change of membership (over
50%) did not affect the Authority’s
approach to delivering
improvement in 2012/13.
Investors in People Award
Internal Auditors review of
Learning & Development &
Performance Management carried
out in 2011 gave a ‘High
Assurance’
Attendance levels at AAFs
Involvement of public in scrutiny
process (in 2012/13 217 individuals
and 15 organisations engaged with
the process.
Take up of public speaking scheme
(only take up was in PAROW in
2012/13)
Number of town and community
councils signed up to the Charter
(currently 17, with 28 councils
having attended liaison meetings
and/or signed the Charter)
Eight Rural Alliances supported
Any gaps in members’ skills are
identified through PDIs and
addressed either corporately or by
offering bespoke one to one training
The Authority can apply for
reassessment of the Advanced
Charter award in 2014 and work is
starting on collating evidence for
the submission.
Implementation of recommendations
from IIP Report completed
Implementation of Auditors Report
2011/12
The scrutiny survey completed in
2012/13 showed there is still a
perception by some people that the
Authority is remote.
The Residents Survey to be
carried out in May 2013 will provide
the basis for an action plan
The Communications Strategy
currently being updated will address
communication with the Park’s
communities
First pilot edition of a Community
Newsletter issued 29 April 2013to collate responses.
68
Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
Systems, processes and
documents in place
Monitoring arrangements
How will we know it’s working
/ not working?
Destination Partnership and its
Attendance at BBSDP meetings
sub-groups as well as the Fforest
twice a year
Fawr Geopark Partnership.
CEO and Director of Planning
have visited 49% of the 50 town
and community councils in the
Park and these are ongoing. Very
positive response to date.
Principle 6: Engaging with Local People and other stakeholders to ensure robust public accountability
An effective Consultation process Extensive consultation processes
Local Development Plan Inquiry will Comments on the
is in place
in place for the Local Plan and
review the consultation process as
Authority’s consultation
National Park Management Plan
part of the Inspector’s work.
process for LDP made by
Equality Act Strategic
External consultation of the
Equality Plan 2012
Authority’s Equality Duty inviting all the CEO of Planning Aid
Wales which he had
interested parties, public sector
bodies and charities to provide
summarised as an excellent
feedback. Also9 organisations
process of community
responded to the consultation on
engagement, which he felt
the Social Inclusion Strategy
How have we or how will we
address any gaps?
(Who and by when?)
Communications Strategy
currently being reviewed
Communications Manager (by 31
March 2013?)
was an exemplar case study
of community engagement
and communication
Very limited response to the
Annual Strategic Equality Plan
Review but no recommendations
for further action
The Authority communicates
effectively with different interest
groups
Community Council Cluster
Groups (Charter)
Area Advisory Forums (Scheme
of Delegation)
Agricultural Stakeholder Group
Meithrin Mynydd (commoners in
the west of the Park)
Wardens attend local meetings
Education team and Wardens
deliver environmental education
to school groups
Partnership working
Terms of Reference for
Capacity is a factor which limits
review but a review of the
effectiveness of AAFs has just been
completed
One possible reason for falling
attendance at AAFs is the
willingness of the Authority to meet
on request – either area or service
based
Wide stakeholder engagement
through Brecon Beacons
Sustainable Destination Partnership
plus sub groups including the
Poor attendance at external
meetings (can also be an indication
that things are working and there
are no issues to raise)
Attendance at BBSDP meetings
Cooperative working with
BBT/SWOAPG on three
substantial projects – review of
effectiveness will be carried out.
The Authority will consider and
address all requests or ideas it
receives on how the public wish to
engage with members and officers
69
Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
Communicating governance
Systems, processes and
documents in place
Monitoring arrangements
BBSDP and FfFGP
Memoranda of
Understanding with Brecon
Beacons Tourism & South
Wales Outdoor Activity
providers group
Fforest Fawr Geopark Partnership
Regular liaison meetings
Annual Governance
Statement
Public Speaking Scheme
Webcasting
Governance leaflet
Social Media
Scrutiny Policy
Corporate Improvement
Plan
Statement of Accounts
Level and type of complaints
Public feedback on webcasting
(figures to 30/4/13 totalled 7927:
NPA
PAROW
ASC
EGM/UBC
2737
2744
1771
675
Voting and participation figures
for those involved in scrutiny
How will we know it’s working
/ not working?
How have we or how will we
address any gaps?
(Who and by when?)
Level of engagement with public
speaking, scrutiny, social media
(scrutiny and public speaking
figures as above). Currently
1291Twitter followers and 6404
Facebook followers. Pilot project
in 2013/14 will trial a live Twitter
feed in relation to a PAROW
meeting
Communications Strategy needed
for every scrutiny review
(Democratic Services Manager ongoing)
Review pilot project of linking
Twitter to live meeting and make
recommendations for future
engagement (CMT)
Principle 7: Achieving Value for Money – looking after taxpayers’ resources properly, and using them carefully to deliver high quality, efficient services
Value for Money
Procurement Policy and
ASC monitors budget at each
Budget monitoring
The Authority has volunteered to
procedures include value for
meeting (6 times per annum) and
Failure to follow procurement
be subject to the duties in the
money as well as sustainability;
makes recommendations to the
policy and/or standing orders
emerging Sustainable
framework agreements used
Authority on draft revenue and
No challenges in 2012/13
Development Bill a year earlier
wherever possible. Tender
capital budgets, reserves and
than required – this may place
process included in the Standing
revised estimates. Any departure
additional reporting requirements
Orders Relating to Contracts. from Standing Orders relating
in 2013/14 but will provide an
Service Level Agreements for
to Contracts is taken to the
opportunity to help shape future
payroll (Cardiff City Council),
Authority for decision
reporting mechanisms
finance system
(Carmarthenshire County
Corporate Implications are
Council) and planning resources challenged by members
(Rhondda Cynon Taf County
Borough Council), as well as
Major policies and plans are
joining the Legal Framework to
subject to a Strategic
buy in additional legal advice
Environmental Assessment
rather than replacing an officer
(Local Development Plan,
who has left the organisation.
National Park Management
Prudent budget management
Plan)
(balanced budget for current year
recommended to NPA each year).
Use of volunteers, generating
70
Statement of Accounts 2012/13
How will we comply with the
principles and requirements
of good governance?
Systems, processes and
documents in place
Monitoring arrangements
How will we know it’s working
/ not working?
How have we or how will we
address any gaps?
(Who and by when?)
more income.
Environmental impact of policies,
plans and decisions is addressed
through decision reports with
‘corporate implications’ completed
by report writers
71
Brecon Beacons National Park Authority
Statement of Accounts for the year ended 31st March 2013
9. Significant Governance Issues and Internal Audit Actions
We are satisfied that the steps outlined below will address the need for improvements
identified by the Wales Audit Office and the Internal Audit reports and will monitor their
implementation and operation as part of our next Annual Governance Statement.
Governance /Audit issues identified
Action to be taken
Identified by WAO Annual Improvement Report issued April 2013
The need to continue to assess the validity of
The methodology to validate and monitor
performance indicators and consider the
performances indicators has been established.
practical aspects of gathering the required
Compliance will be monitored at Directorate
information
and CMT level
Annual Governance Statement should focus
Three Park workshop with WAO scheduled for
more on self-evaluation
7 June 2013. Meetings with WAO and Deloitte
have provided useful guidance to produce this
current AGS
Identified by Internal Audit Reports
7 medium and 14 low priority actions identified Ensure all 21 recommendations from internal
in internal audit reports in 2012/13, as well as 6 audit reports in 2012/13 and outstanding
actions re-raised from previous year (see
actions from 2011/12 have been completed
summary below)
Issues identified in the Authority’s self-evaluation
CMT needs to avoid late publication of the
CMT has agreed that non- compliance will
Corporate Improvement Plan by ensuring
become a performance issue addressed through
officers comply with reporting requirements
the Performance Management Review process
Compliance by officers in reporting
CMT has agreed that non- compliance will
performance on Ffynnon or to Committee
become a performance issue addressed through
needs to be strengthened
the Performance Management Review process
Need for more feedback from the public to
Full residents survey to be carried out early in
provide evidence of impact of services and
2013/14 – Sponsor is the Director of
perception of the Authority
Countryside and Land Management
Lack of clarity on effectiveness of partnership
Develop role descriptions for member
working by members representing the
representing the Authority on outside bodies,
Authority on outside bodies
review value of the partnership and ensure clear
reporting lines
Need to review the effectiveness of decision
Authority to review committee effectiveness
making structures – self evaluation
and bring recommendations to NPA as needed
– by end of 2013/144. Pilot review of Audit and
Scrutiny Committee currently under discussion
Ensure members are aware of and using new
Additional member development to be
protocols and procedures to comply with high
delivered as required by legislation or changes
standards of conduct
in good practice to include Local Resolution,
Blanket Dispensations and a protocol for
members applying for dispensation in relation to
an issue relating to their appointing authority
Evaluate effectiveness of scrutiny process in
Annual evaluation of scrutiny (process and the
securing improvements to service delivery and
outcomes) to be carried out in 2013/14
ensuring that members are able to monitor
performance
72
Brecon Beacons National Park Authority
Statement of Accounts for the year ended 31st March 2013
Need to ensure up to date Communications
Strategy to include how the Authority will
communicate with the public and how it will
engage through scrutiny reviews
Updated Communications Strategy to be
completed
Internal Audit Area
Financial systems
Corporate Governance
Risk Management
IT General Controls
VAT Compliance
Report
Follow up report
High
Priority
0
0
0
0
-
Medium
Priority
3
0
2
2
-
Low
Priority
3
3
2
6
-
Total
-
-
-
-
6
3
4
8
-
Assurance
Level
Substantial
Full
Substantial
Substantial
N/A –
advisory
report
N/A –
advisory
report
Total
0
7
14
21
NB. 23 prior year recommendations were reviewed: 12 were fully implemented, 5 partially
implemented or revised, 6 to be re-raised.
SIGNED ________________________________________
Chairman
DATED ________________________________________
SIGNED ________________________________________
Chief Executive
DATE_______________________________
SIGNED ________________________________________
Section 151 Officer
DATE_______________________________
73
Brecon Beacons National Park Authority
Statement of Accounts for the year ended 31st March 2013
Independent auditor’s report to the Members of Brecon Beacons National Park
Authority
I have audited the accounting statements and related notes of Brecon Beacons National Park
Authority for the year ended 31 March 2013 under the Public Audit (Wales) Act 2004. Brecon
Beacons National Park Authority’s accounting statements comprise the Movement in Reserves
Statement, the Comprehensive Income and Expenditure Statement, the Balance Sheet, the Cash
Flow Statement.
The financial reporting framework that has been applied in their preparation is applicable law and
the Code of Practice on Local Authority Accounting in the United Kingdom 2012/13 based on
International Financial Reporting Standards (IFRSs).
Respective responsibilities of the responsible financial officer and the independent
auditor
As explained more fully in the Statement of Responsibilities for the Statement of Accounts set out
on page 9, the responsible financial officer is responsible for the preparation of the statement of
accounts, which gives a true and fair view.
My responsibility is to audit the accounting statements and related notes in accordance with
applicable law and International Standards on Auditing (UK and Ireland). Those standards require
me to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the accounting statements
An audit involves obtaining evidence about the amounts and disclosures in the accounting
statements and related notes sufficient to give reasonable assurance that the accounting
statements and related notes are free from material misstatement, whether caused by fraud or
error. This includes an assessment of: whether the accounting policies are appropriate to Brecon
Beacons National Park Authority’s circumstances and have been consistently applied and
adequately disclosed; the reasonableness of significant accounting estimates made by the
responsible financial officer and the overall presentation of the accounting statements and related
notes.
In addition, I read all the financial and non-financial information in the Explanatory Foreword to
identify material inconsistencies with the audited accounting statements and related notes. If I
become aware of any apparent material misstatements or inconsistencies, I consider the
implications for my report.
Opinion on the accounting statements of Brecon Beacons National Park Authority
In my opinion the accounting statements and related notes:
 give a true and fair view of the financial position of Brecon Beacons National Park Authority as
at 31 March 2013 and of its income and expenditure for the year then ended; and
 have been properly prepared in accordance with the Code of Practice on Local Authority
Accounting in the United Kingdom 2012/13.
74
Brecon Beacons National Park Authority
Statement of Accounts for the year ended 31st March 2013
Opinion on other matters
In my opinion, the information contained in the Explanatory Foreword for the financial year for
which the accounting statements and related notes are prepared is consistent with the accounting
statements and related notes.
Matters on which I report by exception
I have nothing to report in respect of the Governance Statement on which I report to you if, in
my opinion, it does not reflect compliance with ‘Delivering Good Governance in Local
Government: Framework’ published by CIPFA/SOLACE in June 2007, or if the statement is
misleading or inconsistent with other information I am aware of from my audit.
Certificate of completion of audit
I certify that I have completed the audit of the accounts of Brecon Beacons National Park
Authority in accordance with the requirements of the Public Audit (Wales) Act 2004 and the
Code of Audit Practice issued by the Auditor General for Wales.
Anthony Barrett
Wales Audit Office
24 Cathedral Road
Cardiff
CF11 9LJ
Date:
75