Document

Northwest Development Agency

Annual Report & Accounts

2001/02

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Annual Report and Accounts 2001/02

Contents

1.

Page No

2Chairman's Statement

2. Summary of Key Achievements 3

3. Outputs and Targets, Income and Expenditure 6

4. Operational Matters 7

5. The NWOA Board 9

6. The NVVOA Executive 12

7. Financial Statements 13

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Chairman's statement

This has been another successful year for the Northwest Development Agencydespite a number of unpredictable challenges. Foot and Mouth disease badl~affected our rural economy, particularly in Cumbria. The date September 111 wilforever be linked with global terrorism. That day marked the beginning ofuncertainty in the global economy and the corresponding impact on corporateconfidence. Closer to home, racial harmony was severely tested in parts of theregion and factory closures and job losses continued to affect the manufacturingsector. Despite these challenges the region's economy was not as badly hit as mayhave been expected. As I write there is an upward trend in employment inmanufacturing and consumer spending remains buoyant.

The Agency responded to these external events in a number of ways. WithGovernment support, we acted quickly to invest £30M to aid the recovery followingthe Foot and Mouth epidemic. This was followed by the preparation of a longer-term Regional Rural Recovery plan, which is expected to leverage almost £400Mof investment over the next five years, mainly from the public sector, including£100 million from the Agency.

The Agency worked closely with partners in Burnleyand Oldham to support theTask Forces set up following disturbances in these towns. We will ensure that ourprogrammes and work reflect the reports' recommendations to eliminatesegregation and division.

We responded quickly to provide support to those companies affected by joblosses or closure. While we always respond to changing circumstances, our work iscentred principally on developing new and existing businesses and stimulatingurban and rural regeneration. In doing these things we must ensure thatnecessary skills are available in the work place, appropriate infrastructure exists(particularly transport and information technology) and we continue to promote apositive image of the NorthWest region.

This report records the Agency's key achievements during the last twelve months.It is important to recognise that many projects have a long gestation period. Agood example is the regeneration of East Manchester using the CommonwealthGames as a catalyst: work began on this project several years ago. It is alsoimportant to recognise that almost everyhing we do is in partnership with otherpeople. Building strong local delivery organisations continues to be a high priorityfor us.

As the new Chairman of the NorthWest Development Agency this is my oneopportunity to look back in a detached way. I believe that the Agency has done agood job in the three years since it was formed and my predecessor, Lord TerryThomas, can be proud of his contribution. Looking forward, a major activity for thecoming year is the review of the Regional Strategy, which, will be published inJanuary 2003. This is an important opportunity for everyone to contribute to theregion's future. It is also an opportunity for the Agency to re-focus its priorities andto ensure that we become even more successful in driving forward the economicregeneration of Englandsnorthwest.

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Key Achievements 2001/02

The following is a brief summary of the Agency's key achievements during 2001/02. A moredetailed account of the Agency's activities and achievements is contained in the NWDA AnnualReview 2001/02 which can be obtained from the NWDA Headquarters in Warrington and isalso available on the Agency's website www.nwda.co.uk.

BUSINESS DEVELOPMENT

Science:North West Science Council established.Daresbury Science Park land purchased, incubator being developed, park layout & designunderway.SR2002 proposals input re R&D Zones for innovation and enterprise.Input to cross cutting review of Science, including role of Universities in developing regionaleconomies.Established links with all Research Councils.

Finance for Business:North West Equity Fund launched. (Value £35m)Rising Stars Fund launched. (Value £9.5m)Successful Objective 2 Action Plan submission. (Value £32m)

Regional Intelligence Unit formed, 450 partners involved.

Business Support:Strategic relationships with critical companies established.Regional supply projects with Ineos Chlor and BNFL.Regional Centre of Manufacturing Excellence opened.

InnovationNWDA Incubation strategy 1 policy determined.5 incubators completed plus ongoing programme.9 Foresight projects identified to progress novel ideas into business activity.

Cluster Development ProgrammeFour existing Cluster programmes expanded: Aerospace, Bio-manufacturing, ICT/NewMedia,. Chemicals.Five new Cluster programmes became operational: Textiles, Food, Creativel Cultural,Environmental Technologies, Renewable Energy. .Regional Cultural Strategy launched. .

Rural EconomyProvision of funding and management of £30m programme to minimise the immediateimpact of Foot and Mouth Disease.Regional Rural Recovery Plan established - levers in £390m of mainly public sectorinvestment over next five years, including £1 OOm from NWDA.

Inward Investment 18 projects creating 1 safeguarding 2436 jobs, £35.7m Private Sectorinvestment. .

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REGENERATION

Single Regeneration Budget (SRB): 112 schemes managed; 14 schemes completed. Totalexpenditure £134m.

Regional Land Reclamation Programme: agreed step change in NWDA investment(£8m to£35m over 4 years, then maintained for a further 6 years) and started development work onprogrammes.

Regeneration Prospectus launched to stimulate local initiatives.

Crewe Regeneration: Bentley Task Force established and Regeneration scheme started.

Major site acquisitions: -Mann Island, Liverpool, major waterfront site for Fourth Grace.Liverpool City Council industrial estates.Ancoats and North Manchester Business Park.Michelin Site, East Lancashire.

New Vision for Furness and West Cumbria: study completed and Urban RegenerationCompany delivery vehicle agreed with partners.

Liverpool/Manchester Concordat established.

Market Towns programme established for 20 towns.

National Football Museum opened and achieved national registration.

SKILLS AND EMPLOYMENT

Skills Development Fund: 62 projects managed. (Value £6.7m)

LSCs: Memorandum of Understanding agreed.

Rapid Response Fund provided for Ineos Chlor, Cammell Laird, Corus, Michelin, IngersollRand.

National Skils Festival launched.

Framework for Regional Employment Skils Action (FRESA): Work started with partners,Framework to be produced in October 2002.

Centre of Engineering Excellencè (Crewe): provision of funding.

INFRASTRUCTURE

ICT Broadband Cumbria: Study funded - now taking forward recommendations.

Strategic Sites

Extended list determined and designation document issued.Omega Site, Warrington: work started. (232 Ha site for commercial and industrial use justoff the M62.).Rochdale Kingsway Business Park acquisition underway. (174.5 Ha site for industrial,commercial and leisure use)

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MARKETING

Regional Marketing Forum established

MORI survey completed.

englandsnorthwest regional brand developed.

Major presence at Cannes international property fair (MPIM), Tatton Flower Show,Farnborough Air Show. -Commonwealth Games: provision of marketing support.

Promotion campaigns:"Your countryside: You're Welcome" promoting rural areas."Fun and Games". (targeted at 25 -45 yr olds within a 2 - hour drive of the region.)Regional photography competition with Granada TV.Liverpool 1 Manchester Cultural Campaign to influence the perception of cultural offeringin Liverpool and Manchester.

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Summary of Outputs and Targets

land & Property

Single RegenerationBudget 22,872

Rural Programme 1,210

Regional InnovationFund 0.7

Inward Investment 2,436 35.7

Total Outputs allProgrammes: 29,523 3,229 **97,181 530 322.4

Target 2001/02 allProgrammes: 27,000 2,300 120,000 500 350.0

** Two project completions slipped from 2001/02 to 2002/03 which account for the shortfall

S.ummary of Income and Expenditure. Single Regeneration Budget £134,920

11 Land & Property Programme £100,126

. Business Recovery Fund £24,517Foot & Mouth

. Administration £15,126

. Skils & Development Rapid £8,566. Response Fund

_ Competitiveness Development! £6,474mm Innovation Clusters Fund

. Strategic Programme £2,085

Total Expenditure£296,578

Inward Investment Activity £1,996. Rural Programmes £1,950. Regional Supply Offce £818

Total Income£296,578

. Grant in Aid £270,655. Revenue Receipts £10,531

,. Capital Receipts £9,555. European Funding £4,66. Other Income £679

Interest Received £494

All figures shown are £0005

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Operational Matters

Service First

The Agency's Service First Charter sets out our standards of service whendealing with outside organisations and the general public. Throughout2001/02 the Agency monitored its performance against those standards:

. 82% of written correspondence was replied to within 10 days.(Target 90%)

· 84% of undisputed invoices were paid within 30 days of receipt or withinterms agreed with supplier. (Target 95%)

. 98% of visitors were seen within 10 minutes of their appointment time.(Target 100%).

. During 2002/03 the Agency will implement a call logging system to monitorthe speed of answering telephone calls.

Partnership Working

The Agency is thoroughly committed to partnership working and hascontinued to work closely with the North West Regional Assembly andGovernment Office North -West on a range of issues. All partners wereconsulted on the production of the Agency's Corporate Plan for 2002/03 to2004/05. During the year the Agency determined that it would operate as apartner (not just a funding body) within 25 of the region's 46 LSPs and thatthose 25 would be treated as priorities for NWDA regeneration funding.Robust partnerships are in place with the six sub regional partnerships toensure that their sub regional strategies complement the work beingundertaken as part of the Regional Strategy Review, which began at thebeginning of 2002. .Code of Best.Practice

We have an agreed Code of Best Practice which outlines the roles andresponsibilities of the Chairman, the Board, and the Chief Executive and thestandards to be applied.

We have ensured that the Code has been adhered to throughout the year byregularly reviewing our practices. We have robust and thorough monitoringand recording systems. Board Members have declared interests at particularBoard discussions as appropriate. Staff have followed a similar requirementin compliance with our Code of Conduct.

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Open Government

During the year we have fully complied with the Government's Code ofPractice in Access to Information. In relation to specific requirements of theCode:

. No requests for information were received which specifically referred to theCode;

. No charges were levied for the information supplied;

. No replies to requests for information exceeded 20 days;

. No complaints against the Agency were referred to the Parliamentary

Commissioner for Administration (the Ombudsman).

Public Information

. A Register of Board Members' interests is available for public inspection atour Warrington Headquarters.

. Summaries of the minutes of Board Meetings are published on theWebsite each month.

. We held an Annual General Meeting on 17 September 2001. Over 300

people attended to hear a summary of our achievements during thefinancial year 2001/02 and also ask questions of the Chief Executive andBoard Members about the Agency's work.

. The Chief Executive and Board Members formally met representatives ofthe NorthWest Regional Assembly in May 2001.

We have produced regular press releases detailing our activities and, whereappropriate, gave our response to particular decisions that could have asignificant impact on the region. The Agency's Service First Charter, the Codeof Best Practice anda range of other documents can be viewed on theAgency's website or copies obtained from the Warrington Headquarters.

Greening Government

The Agency's Greening Policy ensures that our practices are sustainable andenvironmentally friendly. Our Procurement Practices also meet the GreeningGovernment objectives.

We moved to our new headquarters in early April 2002. The new building wasgranted a livery good" BREEAM rating.

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The Board

In December 2001 four Board Members left and six new members joined creating a totalmembership of 15. Lord Thomas continued as Chairman until his retirement on 3151 March2002. BryanGray joined the Agency as the new Chairman on 151 April 2002.

Each Board Member has taken responsibility for a key area of business and has exercisedthat role on behalf of the Agency throughout the year. Atthe February 2002 Böard Meetingthese areas of responsibility were reviewed.

Board Members, including their main occupation and interests are listed below. A full list ofBoard Members interests is available from the Agency's Headquarters in Warrington.

Bryan Gray MBE (Appointed 151 April 2002)

Chairman of NWDA. Deputy Chairman of the Baxi Group Ltd since 2000. He currentlychairs the CBI North West Region, of which he has been a Council member since 1994. ABoard member of the University of Central Lancashire.

CUr Mike Doyle JP

Deputy Chairman of the NWDA. Assistant Chief Executive of Business Skils (St Helens)and St Helens MBC Labour Councillor. Member of the Merseyside Learning and SkillsCounciL.NWDA Area of Responsibilty.' Infrastructure and Transport.

Nevile Chamberlain CBE (Appointed 141h December 2001)

Chairman of the Manufacturing Institute, Trafford Park and Deputy Chairman of UrencoLtd. Board Member New East Manchester Urban Regeneration Company.NWDA Area of Responsibilty: Energy

John Dunning CBE, JP

Director of Westmorland Ltd. Chairman, Cumbria Rura1 Enterprise Ltd.NWDA Area of Responsibilty: Rural issues including agriculture, tourism and markettowns.

Felicity Goodey CBE, DL

Director of Precise Communications and Chair of the National Milennium Arts Company-The Lowry. Chairs the NW Cultural Consortium and the Regional Marketing Forum.NWDA Area of Responsibility: Culture, Media, Communications and the Creative aspectsof ICT. .

Professor, Sir Martin Harris CBE, DL (Appointed 141h December 2001)

Vice Chancellor, University of Manchester.NWDA area of responsibility: shared responsibilty forHealth.

Clive Jeanes OBE

Former Managing Director of Milliken Industrials Ltd, Chairman of Wigan BoroughPartnership, and Chairman of Excellence North West. Member of the Cheshire andLearning and Skills Council and RDA representative on the NW Industrial DevelopmentBoard.NWDA area of responsibilty: Manufacturing, Business Excellence and SMEs.

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Those members who left the Board during 2001/02 were as follows:

Lord Thomas of Macclesfield CBE (Chairman from 131h December 1998 to 3151 March

2002)Chairman of NWDA, Lord Thomas was made a Labour life peer in 1997. Lord Thomas is amember of the Regional Policy Forum, which seeks to advance the debate on regionaleconomic development and governance issues, President of the Society for Co-operativeStudies, Honorary President of the North West Co-operative and Mutual Council and amember of the North West NHS Advisory Board.NWDA area of responsibilty: Relations with Government Ministers and the North WestRegional Assembly. Venture Capital

Maggie Chadwick (Retired 131h December 2001)

Self Employed Consultant and Director of Furness Enterprise. Member Cumbria Learningand Skills Council (Resigned 3151 March 2002). -Chair of North West Learning and SkillsForum. (Resigned 3151 March 2002). .NWDA area of responsibilty: Education, Skils and Learning and e - learning ieT.

CounciUor Or Fred Ridley (Retired 131h December 2001)

Liberal Democrat Leader of Stockport MBC.NWDA Area of Responsibilty: SMEs, Business Support.

Judy Robinson(Retired 131h December 2001)

Chair of the Voluntary Sector North West and Director of Greater Manchester Centre forVoluntary Organisations.

NWDA Area of Responsibilty: Voluntary, Mutual and Charitable sectors.

James Ross (Retired 131h December 2001 )

Chairman of the Littlewoods Organisation and the National Grid Group. Board Member ofLiverpool Vision Urban Regeneration Company. (Resigned 131h December 2001)'NWDA area of responsibilty: Liverpool Cify Centre and the private sector on Merseyside.

Board Meetings and Committees

. Ten NWDA Board meetings were held during the year.· The Remuneration Committee convened twice during the year in October 2001 and

March 2002.· The Audit Committee met five times, in February 2001 , April 2001, JUly 2001, October

2001 and January 2002.

There are a number of Sub Groups to the main Board that have met regularly throughoutthe year. For 2001/02 the Sub Groups were Business Development, Marketing,Regeneration, Rural, Skills and Social Inclusion.

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The Executive

Michael Shields CBEChief Executive

Steve AshcroftDirector of Corporate Services: Corporate and business planning, project appraisaland performance monitoring.

John Burrows OBEDirector of Business Development: Inward investment, cluster development,

. innovation and business support.

Dr Baron IsherwoodDirector of Regeneration: Social and economic regeneration, environmentalprogrammesand management of the Agency's Land and Property portolio..

Peter MearnsDirector of Marketing: Promoting the North West, Strategic communications andNWDA Marketing.

Geoff ParkerDirector of Finance: Management of the Agency's finances, Human Resources, ITsystems and administration.

Or Peter WhiteDirector of Strategy: Co-ordination of the del.very of the Regional Strategy, Learningand Skills policy, Co-ordination of the Agency's approach to European Funding andadmiistration of the Regional Intelligence Unit.

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NORTHWEST DEVELOPMENT AGENCY FINANCIAL STATEMENTS2001-2002

FOREWORD TO THE FINANCIAL STATEMENTS

Statutory Background

The Northwest Development Agency wasrestablished under the provisions of theRegional Development Agencies Act 1998. It came into existence on 14 December1998, following Parliamentary approval of the Regional Development Agencies Act1998 and the appointment of Board Members.

The Agency became fully operational on 1 April 1999 when it took over the regionalactivities of English Partnerships and the Rural Development Commission and theSRB Challenge Fund formerly administered by Government Office for the North Westunder the provisions of the Regional Development Agencies Act 1998.

The business of Inward Ltd was transferred into the Agency by a Business TransferAgreement on 1 April 1999.

On 8 June 2001 the Government announced that sponsorship of the Agency wastransferred from the Department of the Environment, Transport and the Regions tothe Department of Trade and Industry.

These Financial Statements have been prepared in the form directed by theSecretary of State for the Department of Environment, Transport and the Regionsand the Accounts Direction is set out on pages 5Tto 62.

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Results for the Year and Transfer to/from Reserves

The results for the year ended 31 March 2002 are contained in the attached FinancialStatements. There was a surplus for the year of £4.33m after taxation (2001: £3.89msurplus)', which was transferred to reserves carried forward.

Review of Activities

During the year the Agency continued to operate its programmes of activity acrossthe region. Key achievements are set out on pages 3 to 5.

With effect from 1 April 2001 full responsibility for the Partnership InvestmentProgramme in the region transferred from English Partnerships. Additional assets of£ 11.11 m and liabilities of £4.96m transferred to the Agency on that date.

Significant Changes in Fixed Assets

On 1 April 2001 investment assets with a value of £90.27m were held by the Agency.During the year there were additions at a cost of £2.13m and disposals from thisportolio with an aggregate book value of £5.14m and which reaHsed £5.26m. At 31

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March 2002 the investme.nt asset portolio was professionally revalued at £85.10mand the resultant deficit of £2.16m was written off to the Income and ExpenditureAccount.

Post Balance Sheet Events

With effect from.1 April 2002 responsibility for Regional Selective Assistance (RSA)with offers less than £2m transferred from Government Office North West. Relatedassets and liabilities transferred to the Agency on that date.

The Agency ceased to have financial responsibility for the Rapid Response Fundwith effect from.. 1 April 2002. Responsibilty for the administration of this fundtransferred to the Employment Service (Department of Work and Pensions).

For more details see Note 27.

Future Development

The Single Financial Framework was fully implemented from 1 April 2002 to provideRDAs with increased flexibility in the deployment of their resources in pursuit ofstrategic priorities in the region.

Statement of the Agency's and Chief Executive's Responsibilties

Under section 14 òf the Regional Development Agencies Act 1998 the Agency is

required to prepare a statement of account for each financial year in the form and onthe basis determined by the Secretary of State, with the consent of Treasury. TheFinancial Statements are prepared on an accruals basis and must give a true and fairview of the Agency's state of affairs at the year end and of its income andexpenditure, total recognised gains and losses and cash flows for the financial year.

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In preparing the Financial Statements the Agency is required to:. observe the Accounts Direction issued by the Secretary of State, including the

relevant accounting and disclosure requirements, and apply suitable accounting

policies on a consistent basis;. make judgements and estimates on a reasonable basis;. state whether applicable accounting standards have been followed, and disclose

and explain any material departures in the financial statements;. prepare the accounts on the going concern basis, unless it is inappropriate to

presume that the Agency will continue in operation.

The Accounting Officer for the Department of Trade and Industry has designated theChief Executive as the Accounting Officer of the North West Development Agency.His responsibilities as Accounting Officer include responsibility for the propriety andregularity and value for money of the public finances, following guidance issued byGovernment; the keeping of proper records; and advising and informing the Board offinancial considerations. These requirements are set out in the "Non-DepartmentalPublic Bodies' Accounting Officer's Memorandum" issued by the Treasury andpublished in Government Accounting.

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The Secretary of State appointed the Board Members on14 December 1998 and 14December 2001. They include Local Authority, Trade Union, community and privatesector representatives.

The Chairman was appointed on 14 December 1998 for an initial period of threeyears. This was extended to 31 March 2002. Board members were also appointedon 14 December 1998 initially for three years and their corporate responsibilities aredetailed in the Code of Best Practice for the Board of the NWOA which is a publicdocument available from the Agency's~JtCtes. On 13 December 2001, 4 Board

Members retired. On 14 December i9 the remaining Board Members were \;.Jtreappointed on terms varying between 1 and 3 years. 5 new Board Members werealso appointed for 3 years. Note 7(b) provides details of the respective periods ofreappointment

The members are as follows: -

Lord Thomas of Macclesfield CBE, Chairman (Retired 31 March 2002)

Councilor Mike Ooyle J.P, Deputy Chairman. (Reappointed 14 December 2001)

Maggie Chadwick (Retired 13 December 2001)

John Dunning CBE, J.P (Reappointed 14 December 2001)

Felicity Goodey CBE (Reappointed 14 December 2001)

Clive Jeanes OBE (Reappointed 14 December 2001)

Councilor Richard Leese CBE (Reappointed 14 December 2001)

Alan Manning (Reappointed 14 December 2001)

Oennis Mendoros OBE (Reappointed 14 Oeçember 2001)

KathReade (Reappointed 14 December 2001)

Councillor Or Fred Ridley (Retired 13 December 2001)

Judy Robinson (Retired 13 December 2001)

James Ross (Retired 13 December 2001)

Nevile Chamberlain, CBE (Appointed 14 December 2001)

Professor Sir Martin Harris CBE(Appointed 14 December 2001)

Anil Kumar Ruia OBE (Appointed 14 December 2001)

Brenda Smith (Appointed 14 December 2001)

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Councillor Mike Storey OBE (Appointed 14 December 2001)

Councillor Or Pauleen Lane (Appointed 14 December 2001)

Brief biographies for the Board Members and details of their areas of responsibilitywithin the Agency, for 2001/02 are shown in the Annual Report section of thisdocument.

Board members are contracted to carry out two days work per month on behalf of theAgency. The Chairman is contracted for 2 days per week and the Deputy Chairman 1day per week.

The Agency maintains a Register of Board Members' Interests which is available onrequest by contacting the Director of Corporate Services at the Agency's offices atRenaissance House, Warrington. Members declare their interests to the Board in anytransactions involving the relevant organisations and withdraw from the meeting asappropriate so that they do not participate in any discussions or vote on any relatedmatters.

Appointment of Chief Executive

On 14 December 1998 Michael Shields was appointed as Chief Executive for a fixedterm of five years.

Employment of Disabled Persons

The Agency gives full and fair consideration to all applications for employment fromdisabled persons having regard to their particular aptitudes and abiliies.

Provision of information to and consultation with employees

The Agency is fully committed to effective and open communication and consultationwith its employees. This is achieved through a variety of means including a StaffConsultative Committee involving the Public and Commercial Services (PCS) andProspect Trade Unions together with staff representatives; a Health and SafetyCommittee; and staff events to communicate key issues and receive feedback.

Better Payment Practice Code

The Agency is committed to the Better Payment Practice Code (previously the CBIPrompt Payment Code) and aims to pay all undisputed invoices either within 30 daysor the terms agreed with the supplier (minimum 95%).

In 2001/02 the Agency did not achieve this target paying 84% (2001: 79%) ofinvoices on time. The Agency is committed to achieving a high standard ofperformance and is continuing to seek further improvement in payment timescales.

Financial Memorandum

The Secretary of State issued the Agency with a new Financial Memorandum settingout the financial framework under which the Agency should operate. The Agency has.

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complied in all material respects with the terms of this memorandum during thecourse of 2001/02.

Statement on Internal Control

The Accounting Officer has responsibility for maintaining a sound system of internalcontrol that supports the achievement of the Northwest Development Agency'spolicies aims and objectives whilst safeguarding the public funds and assets forwhich he is personally responsible in accordance with the responsibiliies assigned tohim in Government Accounting.

The system of internal control is designed to manage rather than eliminate the risk offailure to achieve policies aims and objectives; it can therefore only provide

reasonable and not absolute assurance of effectiveness.

The system of internal control is based on an ongoing process deigned to identify theprincipal risks to the achievement of the Agency's policies aims and objectives toevaluate the nature and extent of those risks to manage them efficiently, effectivelyand economically. It is expected that the procedures necessary to implement

. Treasury guidance wil be in place in March 2003. This takes account of the timeneeded to fully embed the processes which the Agency has agreed should beestablished and improve their robustness.

The Agency held a risk management workshop attended by representatives of allinternal departments during which the Agency's objectives and risks were identifiedand a control strategy for each of the significant risks was determined.

The board receives periodic reports from the chairman of the audit committeeconcerning internal control.

In addition to the actions mentioned above in the coming year the Agency plans to:· arrange a regular programme of facilitated workshops to identify and keep up

to date the records of risks facing the organisation;· introduce a programme of risk awareness training;· develop and maintain an organisation-wide risk register; and· arrange for reports from the Agency's Directors on internal control activities.

The Agency has an Internal Audit Service which operates to standards defined in theGovernment Internal Audit ManuaL. They submit regular reports which include theHead of Internal Audit's independent opinion on the adequacy and effectiveness ofthe Agency's system of internal control together with recommendations forimprovement.

The Accounting Officer's review of the effectiveness of the system of internal controlis informed by the work of the internal auditors and the executive managers withinthe department who have responsibiliy for the development and maintenance of theinternal control framework and comments made by the external auditors in theirmanagement letter and other reports.

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Statement on the Agency's Policy for Conserving energy, reducingwaste & minimising the Release of Greenhouse Gases

The Agency is committed to energy conservation, waste reduction and minimisingthe release of greenhouse gases.

Sustainability is a key cross cutting theme within the Regional Strategy. The Agencyis a funding contributor to Sustainabilty North West, a rnulti-sectoral partnership, andis represented on its Board. A close working relationship has been established.

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Chief Executive 1 Accounting Officer

tl''-~~Chairman

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NORTH WEST DEVELOPMENT AGENCY 2001.02

THE REPORT OF THE COMPTROLLER AND AUDITOR GENERALTO THE HOUSES OF PARLIAMENT AND THE NORTHWEST

DEVELOPMENT AGENCY. ¡ /I have audited the financial statements on pages 21 to 56 under the RegionalDevelopment Agencies Act 1998. These financial statements have been preparedunder the historical cost convention as modified by the revaluation of certain fixedassets and the accounting policies set out on pages 2l3 to 29.. jRespective responsibilties of the Agency, the Chief Executive andAuditor

/As described on page 14 the Northwest Development Agency and Chief Executiveare responsible for the preparation of the financial statements in accordance with theRegional Development Agencies Act 1998 and directions made thereunder by theSecretary of State, and for ensuring the regularity of financial transactions. The.Northwest Development Agency and Chief Executive are also responsible for thepreparation of the other contents of the Annual Report. My responsibilties, asindependent auditor are established by statute and guided by the Auditing PracticesBoard and the auditing profession's ethical guidance.

I. report my opinion as to whetherthe financial statements give a true and fair viewand are properly prepared in accordance with the Regional Development AgenciesAct 1998 and directions made thereunder, and whether in all material respects theexpenditure and income have been applied to the purposes intended by Parliamentand the financial transactions conform to the authorities which govern them. I alsoreport if, in my opinion, the Foreword is not consistent with the financial statements, ifthe Northwest Development Agency has not kept proper accounting records, or if ihave not received all the information and explanations I require for my audit.

I read the other information contained in the Annual Report and consider whether it isconsistent with the audited financial statements. i consider the' implications for mycertificate if i become aware of any apparent misstatements or material .inconsistencies with the financial statements.

/I review whether the statement on page 17 reflects the Northwest DevelopmentAgency's compliance with Treasury's guidance 'Corporate Governance: statement oninternal control'. i report if it does not meet the requirements specified by Treasury,or if the statement is misleading or inconsistent with other information I am aware offrom my audit of the financial statements.

The maintenance and integrity of the Agency's websiteis the responsibilty of theAccounting Officer; the work carried out by the auditors does not involveconsideration of these matters and accordingly the auditors accept no responsibilityfor any changes that may have occurred to the Financial Statements since they wereinitially presented on the website.

Basis of audit opinion

i conducted my audit in accordance with United Kingdom Auditing Standards issuedby the Auditing Practices Board. An audit includes examination, on a test basis, ofevidence relevant to the amounts, disclosures and regularity of financial transactionsincluded in the financial statements. It also includes an assessment of the significantestimates and judgements made by the Agency and the Chief Executive in thepreparation of the financial statements, and of whether the accounting policies areappropriate to the Agency's circumstances, consistently applied and adequatelydisclosed.

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I planned and performed my audit so as to obtain all the information and explanationswhich I considered necessary in order to provide me with sufficient evidence to givereasonable assurance that the financial statements are free from materialmisstatement, whether caused by error, or by fraud or other irregularity and that, inall material respects, the expenditure and income have been applied to the purposesintended by Parliament and the financial transactions conform to the authoritieswhich govern them. In forming my opinion I have also evaluated the overalladequacy of the presentation of information in the financial statements.

Opinion

In my opinion: ..

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· the financial stàtements give a true and fair view of the state of affairs of theNorthwest Development Agency and the Group at 31 March 2002 and of thesurplus, total recognised gains and losses and Gash flows for the period thenended and have been properly prepared in accordance with the RegionalDevelopment Agencies Act 1998 and directions made thereunder; and

· in all material respects the expenditure and income have been applied to thepurposes intended by Parliament and the financial transactions conform to theauthorities which govern them.

· i have no observations to make on these financial statements.

~~~John Bourn

Comptroller and AuditorGeneral.i 3 July 2002

National Audit Office

157-197 Buckingham Palace RoadVictoria

London SW1W 9SP

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STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESFOR THE YEAR ENDED 31 MARCH 2002

As Restated2002 2001£'000 £'000

Surplus for period carried forward 4,327 3,889

Revaluation on investment assets ,. 2,980Revaluation on development assets 184

Grant in Aid receivable not released to theIncome and Expenditure Account 33,045. 4,918

Total Gains 37,372 11,971

The 2001 Grant-in-Aid receivable not released to the Income and ExpenditureAccount has been restated by an increase of £3,748,000 to show movements fromthe Government Grant Reserve on a gross basis instead of the net basis aspreviously disclosed.

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GROUP BALANCE SHEET AS AT 31 MARCH 2002

~~ci~-Chief Executive/Accounting Officer

~~ifC1~Chairman

The notes on pages 26 to 56 form part of these accounts

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BALANCE SHEET AS AT 31 MARCH 2002

Notes 2002 2001£'000 £'000

FIXED ASSETSTangible operating assets 11 3,407 2,169Investment assets 12 85,098 90,270Investment in subsidiary undertakings 13

88,505 92,439

CURRENT ASSETSStock of development assets 14 45,622 16,165Debtors 15 25,095 9,766Cash at bank and in hand 5,326 2,655

76,043 28,586CREDITORS: Amounts fallingdue within one year 16 22,688 7,498

NET CURRENT ASSETS 53,355 21,088

PROVISIONS FO.R LIABILITIES AND CHARGES 17 834 702

TOTAL ASSETS LESS TOTAL LIABILITIES 141,026 112,825

RESERVESIncome and Expenditure Reserve 19 1,074 (1,861)Government Grant Reserve 18B 139,952 114,429Other Reserves 20 257

141,026 112,825

APPROVED BY THE BOARD ON 12THJUL Y 2002

~.fJ ~~~"SV'Cha'irman- .lChief Executive/Accounting Officer

The notes on pages 26 to 56 form pari of these accounts

25

GROUP CASHFLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2002

Reconcilation of Operating Surplus to net cash (outflow) from Operating Activities

OPERATING ACTIVITIES 2002£'000

3,939

(14,701)

334

(5,260)

5,138

2,167

(34,067)

3,024

4,301

Operating. Surplus

Transfer from Government Grant Reserve

Depreciation

Proceeds from the disposal of Investment Assets

Book Value of Investment Assets sold

Write Down of Investment Assets

Additions to Stock of Development Assets

Book value of Development Assets sold

Write Down of Development Assets

Proceeds from the disposal of Operating Assets

(Increase) / decrease in Debtors

Increase in Creditors and Provisions

(9,707)

16,424

(100)Environmental Liability provision decrease

Write down of loan stock

Net Cash (Outflow) from operating activities

CASHFLOW STATEMENT

(28,508)

Returns on Investments and Servicing of financeInterest Received 494

TaxationUK Corporation Tax paid

Capital Expenditure and Financial InvestmentPurchase of Fixed Operating and Investment assets

Proceeds on disposal of Fixed Operating and Investment assets

AcquisitionCash Transfer (outflow) from other organisations

(3,914)

(3,710)

5,260

(30,378)

33,045

2,667

2001£'000

747

(6,387)

279

(5,935)

5,961

o

(10,953)

1,348

8,770

(18)

2,837

454

350

(3,750)

(6,297)

435

(2,137)

(2,062)

5,953

155

(3,953)

4,718\

765

Kt

26

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2002

1 ACCOUNTING POLICIES

(1) Basis of Accounting

The Financial Statements of the Northwest Development Agency have beenprepared in a form directed by the Secretary of Stateför the Environment,Transport and the Regions, with the approval of H M Treasury, in accordancewith the Regional Development Agencies Act 1998. The financial statementshave been prepared as set out in Treasury guidance under the modifiedhistorical cost basis as explained in the sub-paragraphs below and inaccordance with applicable Accounting Standards. Compliance with SSAP 19"Accounting for Investment Properties" requires departure from therequirements of the Companies Act 1985 relating to depreciation and anexplanation ofthe departure is given in note 1 (3) below.

(2) Basis of Consolidation

No separate income and expenditure accountis presented for the Agency asprovided by Section 230 of the Companies Act 1985.

The consolidated Financial Statements incorporate the Financial Statementsof the Agency and its subsidiary undertaking Speke Garston DevelopmentsLimited.

(3) Fixed assets - Investment assets

The portolio of industrial and commercial investment properties held at anyone time is treated in such a way that surpluses and deficits on revaluation ofindustrial and commercial properties are netted off. Any overall write-down ofthese properties to open market value, and subsequent adjustments thereto,are accounted for annually and separately identified in the income andexpenditure account. Any overall surplus on revaluation of these properties toopen market value, and subsequent adjustments thereto, are credited to thegovernment grant reserve after eliminating the overall accumulated unrealiseddeficit, as originally charged, by revaluation adjustment, to the Income andExpenditure Account.

Valuations are carried out in accordance with best practice as contained in theStatement of Asset Valuation Practice and Guidance Notes (3rd Edition)published by the Royal Institute of Chartered Surveyors.

A valuation of the whole portolio was carried out as at 31 March 2002, whichwas undertaken by King Sturge, International Property Consultants.

In accordance with SSAP19,-no depreciation is provided in respect ofinvestment properties. This departure from the requirement of the CompaniesACt 1985 for all properties to be depreciated is, in the opinion of the Board,necessary for the Financial Statements to give a true and fair view inaccordance with applicable accounting standards as properties are included inthe Financial Statements at their open market value.

~

27

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2002 (CONTINUED)

1 ACCOUNTING POLICIES (CONTINUED)

(3) Fixed assets (continued)

Depreciation is only one of the many factors reflected in the annual valuationof the properties and the amount attributed to this factor by the valuers cannotreasonably be separately quantified.

Acquisitions and disposals of land and buildings are accounted for on the dateof legal completion.

(4) Fixed Assets - Other Tangible Assets

Tangible Fixed Assets are valued at depreciated replacement cost.

(5) Development Assets

Development assets, consisting of land and buildings, are shown at the lowerof current replacement cost and net realisable value, any reductions in holdingvalue being written off to the Income and Expenditure Account.

Acquisitions and disposals of development assets are accounted for on thedate of legal completion.

(6) Depreciation

Depreciation is provided to write off the replacement cost of tangible fixedassets over their anticipated useful lives on a straight line basis at thefollowing annual rates:

Owned property 50 yearsLeasehold buildings with less than 25 years to run Period of leaseOffice furniture, fittings and equipment 5 yearsComputer equipment 3 years

(7) Investments and Long Term Loans

Investments and loans are shown net of provision for amounts considereddoubtful and of write-offs for amounts considered irrecoverable. Provision hasbeen made for all loans where recovery appears doubtfuL. No loan is writtenoff until the impossibilty of recovery is beyond doubt. Approval from the OTI isobtained for any write-off in excess of £25,000.

~

28


1 ACCOUNTING POLICIES (CONTINUED)

(7) Investments and Loans (continued)

Partnership workspace schemes, the Agency's investment with partners,mainly local authorities, to provide rural works pace has been disclosed in theBalance Sheet at a valuation based on present value of estimated futurerental income. Expenditure on these projects is written off in the year ofspend.

(8) Pension Costs

Certain of the employees of The Northwest Development Agency participatein the Principle Civil Service Pension Scheme (PCSPS), the EnglishPartnerships Pension Scheme (EPPS) and individual defined contributionpension plans. The PCSPS and EPPS are defined benefit schemes. ThePCSPS is a non-contributory scheme. The Northwest Development Agencyrecognises the expected cost of providing pensions on a systematic andrational basis over the period during which it benefits from employee'sservices by payment to the scheme of amounts calculated on an accruingbasis. Liability for payment of future benefits is a charge on the scheme.

(9) Government Grants

Northwest Development Agency's activities are funded primarily by Grant-in-Aid provided by the Department of Trade and Industry for specified types ofexpenditure. Government Grants receivable of a revenue nature are creditedto the Income and Expenditure Account in the year to which they relate.Government Grants in respect of capital expenditure are credited to theGovernment Grant Reserve and released to the Income and ExpenditureAccount either, over the expected useful life of the asset, for assets that are. depreciated or, upon disposal or loss in value, for assets that are not '

depreciated.

Grant-in-Aid released to the Income and Expenditure account includesamounts attributable to expense accruals for which grant will be receivedduring the year 2002/2003 to finance payment.

(10) Deferred Taxation

Full provision has been made for deferred tax assets and liabilities arisingfrom timingdifferencesbetween the recognition of gains and losses in thefinancial statement and their recognition in the tax computation.

(11) Foreign Currency Transactions

Transactions in foreign currencies are recorded in sterling at the ratesprevailing at the Balance Sheet date. Resulting exchange gains and lossesare taken to the Income and Expenditure Account.

~~

29

NOTES TO THE. FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2002 (CONTINUED)

(12) Leases

Operating lease rentals are charged to the Income and Expenditure Account. over the period of the lease.

There are no finance leases.

~

30


2 GRANT IN AID RELEASED

As a result of machinery of Government change on 8 June 2001, responsibility for thefunding of the Agency transferred from the Department of the Environment, Transport andthe Regions to the Department of Trade and Industry. In 2000-01, the Agency was fundedby grant-in-aid from the Department of the Environment, Transport and the Regions Class ILL,Vote 1, with the Department of Trade and Industry Class IX, Vote 1 funding expenditure onthe Regional Supply Office.

Grant-in~Aid received from DETRGrant-in-Aid received from DTI

Opening 2000/01 Grant-in-Aid debtorClosing 2000/01 Grant-in-Aid debtorOpening 2001/02Grant-in-Aid debtorClosing 2001/02 Grant-in-Aid debtor

Total Grant-in-Aid receivable

Grant-in-Aid utilised in the yearLand and PropertySingle Regeneration BudgetRural DevelopmentBusiness Recovery Fund - Foot & MouthSkils DevelopmentRegional InnovationRegional Centre for Manufacturing ExcellenceAdministration ExpenditureInward Investment ActivityRegional Supply OfficeStrategic ProgrammeCorporation Tax

Total relevant expenditure

Less:ReceiptsCapital receiptsRevenue ReceiptsEuropean Funding

Other Income'Interest received

Total Grant-in-Aid utilsed

Grant-in-Aid applied to Capital ExpenditureGrant-in-Aid applied to purchase fixed operating assetsGrant-in-Aid applied to purchase investment assetsGrant-in-Aid applied to purchase development assets

Grant-in-Aid credited to Income and Expenditure Account

(9,555)(10,531)(4,664)

(679)(494)

270,655

(1,997)(2,133)

(28,915)

237,610

(7,157)(10,906)

(248)(1,247)

(435)

156,055

(591 )(1,483)(2,864)

151,117

~rd

31


2 GRANT IN AID RELEASED (CONTINUED)

Grant-in-Aid released from the Government Grant Reserve to the Income andExpenditure Account for disposals is now shown as a transfer in the GovernmentGrant Reserve (Note 18) instead of being released to the Income and ExpenditureAccount through Note 2. This reclassification has no impact on total incomerecorded or total assets less total liabilities for 2000-01.

Interest earned by the Agency comprises mainly bank interest and interest receivedfrom the Rural Loans portolio. The total interest received is repaid to Department ofTrade and Industry by direct deduction from the monthly grant claims.

ANALYSIS OF NOTE 2 GRANT EXPENDITURE RECORDED IN THE INCOMEAND EXPENDITURE ACCOUNT

2002 2001£'000 £'000

Land and PropertySingle Regeneration Budget,Rural DevelopmentBusiness Recovery Fund - Foot and Mouth

Skills DevelopmentRegional InnovationRegional Centre for Manufacturing ExcellenceRegional Supply OfficeStrategic Programme

63,406134,920

1,86924,466

8,2442,487

591184861

237,028

COALFIELDS

15,539126,892

1,687

6,1551,638

25668

152,235

During the year, grant was received from English Partnerships for the CoalfieldsProgramme as follows:

Opening 2001/2002 Coalfield (Creditor) / Debtor

Grant received

Closing 2001/02 Coalfield (Creditor) / Debtor

Grant receivable

Expenditure on coalfields

Capital Receipts - European Funding- Other

Grant released

%

32


5 OTHER INCOME

Inward InvestmentSpeke Garston Developments LimitedContributions to Direct Development projectsMiscellaneous IncomePartner Contributions

2002£'000

301,209

254499

1,992

2001£'000

1,2001,300

55460

3,114

6 INTEREST RECEIVABLE

2002 2001£'000 £'000

BankdepositRural loan interest

47717

494

41322

435

c1¿;

33


7 SALARIES AND WAGES

2002 2001£'000 £'000

7 (a)Board MembersBoard members salariesPension costsSocial Secu rity Costs

14789

164

13979

155

Staff

Salaries and wages inc. overtimePension Costs

Social Security costs

6,520784535

7,839

494156650

8,653

5,698641489

6,828

524235759

7,742

Agency StaffSeconded staff salary costs

Total Salaries & Wages

~

34


7 (b) Emoluments of Board Members

The emoluments of Board Members were:

Name Period of Salary Real Total Pension SaleAppointment 2002 Increase in accrued 2002 20C

Pension pension at31/03/02

From To £ £ £ £ £

Lord Thomas ofMacclesfield 14/12/98 - 31/03/02 46,634 599 1,895 7,695 45,2Mike Doyle 14/12/98 -13/12/01 14,838 - 14,4

14/12/01 -13/12/02Maggie Chadwick * 14/12/98 - 13/12/01 5,203 7,2John Dunning 14/12/98 -13/12/01 7,419 7,2

14/12/01 -13/12/04Felicity Goodey 14/12/98 - 13/12/01 7,419 7,2

14/12/01 -13/12/02Clive Jeanes 14/12/98 -13/12/01 7,419 7,2

14/12/01 - 13/12/03

Richard Leese 14/12/98 -13/12/01 7,419 7,214/12/01 -13/12/03

Alan Manning 14/12/98 -13/12/01 7,419 7,214/12/01 -13/12/03

Dennis Mendoros 14/12/98 -13/12/01 7,419 7,214/12/01 -' 13/12/04

Kath Reade 14/12/98 -13/12/01 7,419 7,2114/12/01- 13/12/02

Fred Ridley * 14/12/98-13/12/01 5,203 7,21Judy Robinson * 14/12/98 -13/12/01 5,203 7,21James Ross * 14/12/98 -13/12/01 5,203 7,21Neville Chamberlain 14/12/01 - 13/12/04 2,197Professor Sir MartinHarris 14/12/01 -13/12/04 2,197Anil Kumar Ruia 14/12/01 -13/12/04 2,197Brenda Smith 14/12/01 -13/12/04 2,197Mike Storey 14/12/01 -13/12/04 2,197Dr Pauleen Lane 14/12/01 -13/12/04 2,197

* Retired 13 December 2001

The net salaries of Professor Sir Martin Harris, Anil Kumar Ruia and Or PauleenLane have been paid directly to their principal employer, at their request. As aconsequence they receive no personal benefit from their remuneration as boardmembers.

Lord Thomas of Macclesfield retired from office on 3151 March 2002. On 151 April2002 Bryan Gray was appointed to the position of Chairman.

Board members are contracted to carry out two days work per month on behalf of theAgency. The Chairman is contracted for 2 days per week and the Deputy Chairmanis contracted for 1 day per week. No Board Members are eligible for pensioncontributions, performance related payor any other taxable benefit as a result. ofemployment with the Agency, with the exception of the Chairman, Lord Thomas ofMacclesfield, who is a member of the Principal Civil Service Pension Scheme.

~

35


7 (c) Emoluments of Chief Executive and the most senior managers

Name Age Salary for Bonus Benefits 2002 200relevant Total Tote

period£ £ £ £

Michael Shields, CBEChief ExecutiveAppointed 14-12-98 59 92,165 9,136 - 101,301 100,91.

Steve AshcroftDirector of Corporate Services

52 53,230 4,019 685 57,934 52,31!Appointed 01-09-99

John Burrows, OBEDirector of Business Development

56 76,375 5,765. 5,943 88,083 84,92;Appointed 01-04-99

Or Baron IsherwoodDirector of Regeneration

57 74,522 5,626 3,938 84,086 76,301Appointed 01-10-99

Peter MearnsDirector of MarketingAppointed 16-08-99

51 53,230 4,019 5,500 62,749 57, 18~

Geoff ParkerDirector of Finance

48 74,522 5,626 4,974 85,122 77,26'Appointed 19-07-99

Or Peter WhiteDirector of Strategy

52 74,522 5,626 4,082 84,230 76,36EAppointed 01-08-99

~

36


7 (c) Emoluments of Chief Executive and the most senior managers

Name Age Real Total Totalincrease in accrued accruedpension at pension at pension at

60 60 60 atat 31/03/02 31/3/01

£ £ £Michael Shields, CBEChief Executive

Appointed 14-12-98 59 1,210 3,823 2,569

Steve As h croft

Director Corporate ServicesAppointed 01-09-99 52 678 1,727 1,032

. John Burrows, OBEDirector of Business Development. Private Money PurchaseAppointed 01-04-99 56 Defined Contribution Scheme

Or Baron IshwerwoodDirector of RegenerationAppointed 01-10-99 57 1,124 24,837 23,317

. Peter MearnsDirector of MarketingAppointed 16-08-99 51 678 1,754 1,063

Geoff ParkerDirector of FinanceAppointed 19-07-99 48 950 2,531 1,554

Or Peter WhiteDirector of StrategyAppointed 01-08-99 52 850 2,441 1,527

Pension benefits are provided through the Principal Civil Service Pension Scheme.This is a statutory scheme that provides benefis on a final salary basis at a normalretirement age of 60. Benefits. accrue at the rate of 1/801h of pensionable salary foreach year of service. In addition a lump sum equivalent to 3 years pension ispayable on retirement. Members pay contributions of 1 1/2% of pensionableearnings. Pensions increase in payment in line with the Retail Price Index. Ondeath, pensions are payable to the surviving spouse at a rate of half the member'spension. On death in service, the scheme pays a lump sum benefit of twicepensionable pay and also provides a service enhancement on computing thespouse's pension. The enhancement depends on length of service and cannotexceed 10 years.

1!

37

NOTES TO THE FINANCIAL STATEMENTSFORTHE YEAR ENDED 31 MARCH 2002 (CONTINUED)

The Chief Executive and Senior Management have given their consent to show theirpension benefit details, but the pensions benefit details of John Burrows are notavailable to the Agency at this time.

Medical retirement is possible in the event of serious il health. In this case pensionsare brought into payment immediately without actuarial reduction and with serviceenhanced as for widow(er) pensions.

Benefits include cars.

Performance pay for the Chief Executive is determined by the Board on therecommendation of the Remuneration Committee. Performance is measured againsteight separately weighted targets determined by the Board and agreed by theSecretary of State for Trade and Industry and the amountof the performance awardcan be up to a maximum of 10% of salary. (In 2001102 targets related topartnerships working, internal control and budget management).

. Performance pay of the senior management team is determined by the ChiefExecutive on advice from the Remuneration Committee. Performance is measuredagainst detailed annual targets set individually for each employee by the ChiefExecutive and the amount of the performance award can be up to 10% of salary.

SALARIES AND WAGES

7 (d) Staffing Numbers

The average number of staff employed by the Agency during the year (including allagency and seconded staff) was 263.

2002 2001

Chief Executive's Office 7 6

Corporate Services 8 5

Business Development 53 44

Regeneration 96 100

Marketing 14 11

Finance 44 41

Strategy (formerly Policy & Intellgence) 30 19

Overseas 3 3

Speke Garston Developments Limited 8 8

Total 263 .237

~

38


7 (e) Pension Arrangements

The Agency has a number of pension schemes in operation. The principal schemesare of the contributory defined benefit type.

Principal Civil Service Pension Scheme (PCSPS)

The PCSPS is an unfunded multi-employer defined benefit scheme but NorthwestDevelopment Agency is unable to identify its share of the underlying assets andliabilities. A full actuarial valuation was carried out at 31 March 1999. Details can befound in the resource accounts of the Cabinet Office; Civil Superannuation(ww.civilservice-pensions.gov.uk).

For 2001-02, employers' contributions of £623,890 were payable to the .PCSPS (2000-01: £399,157 ) at one of four rates in the range 12 to 18.5per cent of pensionable pay, based on salary bands. Rates will remain thesame for the next two years, subject to revalorisation of the salary bands.Employer contributions are to be reviewed every four years following a fullscheme, valuation by the Government Actuary. The contribution rates reflectbenefits as they are accrued, not when the costs are actually incurred, andreflect past experience of the scheme.

English Partnerships Pension Scheme

The EPPS is a multi-employer defined benefit scheme but the NorthwestDevelopment Agency is unable to identify its share of underlying net assets andliabilities. A full actuarial valuation was carried out at 31 March 1999 and moredetails can be found in the separate scheme statement of the EPPS. For 2001-2002,normal employer contributions of £108,948 were payable to the EPPS (2000-2001:£166,080) at the rate of 9 per cent

(1 April 2000 to 30 June 2000: 15% and 1 July2000 to 31 March 2001: 9%) of pensionable salary. It has been agreed thatcontributions wil be reviewed on an annual basis following a scheme valuation by thescheme actuary. The contribution rates reflect benefits as they are accrued, notwhen the costs are actually incurred, and they reflect past experience of the scheme.At the balance sheet date there were no outstanding or prepaid contributions to thescheme.

The accounts of the English Partnerships Pension Scheme are available from theSecretary; at St George's House, Kingsway, Team Valley, Gateshead, NE11 ONA.All employees in the scheme are issued with a summary of the accounts.

The Greater Manchester Pension Fund

Contributions of £2,093 (2000 - 2001: £2,177) were paid to the Greater ManchesterPension Fund. The rate for 2001/02 as determined by the fund's actuary was 10.6%of pensionable salary. The Greater Manchester Pension Fund is a multi-employerdefined benefit scheme, but the Northwest Development Agency is unable to identifyits share of underlying net assets and liabilities. A full actuarial valuation was carriedout at 31 March 2001 and more details can be found in the separate schemestatement of the Greater Manchester Pension Fund.

~

39


Other Schemes

There are three minority schemes covering 3.8% of the Agency's staff, of the definedcontribution type held in independently administered funds. The rate for 2001/02 was9% of pensionable salary. Contributions of £31,654 (2001: £57,373) were paid toInward Group Money Purchase Plan, Scottish Mutual Assurance Plc Group PersonalPension Plan and CGU Life Personal Pension Plan.

The Merseyside Pension Fund covers 1.9% of the Agency's staff and is a definedbenefit scheme. The rate for 2001/02 was 11.1 % of pensionable salary.Contributions of £26,114 (2001: £23,948) were paid.

The Merseyside Pension Fund is a multi-employer defined benefit scheme but theNorthwest Development agency is unable to identify its share of unqerlying netassets and liabilities. A full actuarial valuation was carried out at 31 March 2001 andmore details can be found in the separate scheme statement of the MerseysidePension Fund.

7 (t) Seconded Staff

Staff were seconded from the following organisations to the Agency during the accountingperiod.

2002 2001Organisation No. of Cost No. of Cost

staff £'000 staff £'000

Liverpool City Council 1 20 1 20Chamber Business Enterprise 1 20 1 40Defence Science. & Technology Laboratory 1 19 1 34Manchester Biotech Limited 1 43North West Chemical Initiative 1 7 2 45Oldharn Metropolitan Borough Council 1 1

Stockport and High Peak TEC 1 11South Wirral Health Authority 1 43 . 1 37Eden Biopharm 1 32 1 4Barclays Bank 1

Pricewaterhouse Coopers 1 15. Total 7 156 11 235

1Z

40

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2002 (CONTINUED),

8 OTHER ADMINISTRATION COSTS

Travel & SubsistenceOther staff costsOffice costsEstate ManagementMarketing and PRProfessional costsIT and communicationDepreciationAuditors' remunerationOperating lease rentalsContributions to Joint Ventures

2002£'000

664434

3,1922,0152,8743,1581,190

33470

927334

15,192

2001£'000

601542

1,1352,1731,5101,9221,228

27968

841334

10,633

The utilisation of Grant-in-Aid for Administration is shown in Note 2.

9 NOTIONAL COST OF CAPITAL

When calculating the surplus or deficit for the year, the Agency is required to includeas expenditure, a notional cost of capital, to the extent that there is no real charge forthis. This has been calculated as 6% of the average of total assets less totalliabilties. After the surplus or deficit for the year there is an entry reversing thisamount.

10 TAXATION

Corporation tax on profits for the year at 30%Deferred tax provision

2002 2001£'000 £'000

2,358(5,065)(2,707)

106106

'1

41


11 TANGIBLE OPERATING ASSETS

Group AgencyProperties Equipment, Total Properties Equipment, Totaloccupied. fixtures and occupied by fixtures and .

by the motor the Agency motorAgency vehicles vehicles

Cost or £000 £000 £000 £'000 £'000 £'000valuation

At1 April 2001 1,539 1,146 2,685 1;539 1,127 2,666Additions in year 2,008 2,008 1,997 1,997Transfers toinvestment assets (431) (431) (431) (431)Disposals in year (8) (8) (8) (8)

At 31 March 2002 1,108 3,146 4,254 1,108 3,116 4,224

DepreciationAt 1 April 2001 62 449 511 62 435 497Depreciation inyear 4 330 334 4 324 328

. Disposals in year (8) (8) (8) (8)

At 31 March2002 66 771 837 66 751 817

Net Book Value

31 March 2002 1,042 2,375 3,417 1,042 2,365 3,407

Net Book Value31 March 2001 1,477 697 2,174 1,477 692 2,169

The Net Book Value of tangible operating assets does not differ materially from thedepreciated replacement cost of the assets.

~

42


12 INVESTMENT ASSETS

Group2002 ' 2001£'000 £'000

At 1 April 2001Additions in yearTransfer from Propertiesoccupied by Agency

90,2701,702

431

92,403

(5,138)(2,167)

85,098

Oisposals(Oeficit)/Surplus on Revaluation

Valuation at 31 March 2002

13 INVESTMENTS

SUBSIDIARY UNDERTAKINGS

Loan1 April 2001

ProvisionAt April 2001

31 March 2002

31 March 2001

91,7681,483

93,251

(5,961 )2,980

90,270

Group

£'000

Agency2002 2001£'000 £'000

90,2701,702

431

92,403

(5,138)(2,167)

85,098

91,7681,483

93,251

(5,961 )2,980

90,270

Agency

£'000

5,825

5,825

Loan Stock of £5,825,000 was issued on 10 July 1996. It is unsecured and nointerest is receivable unless written notice is issued from either stockholder with theother's agreement. No notice has been issued to date.

The loan is repayable on 25 April 2003 in accordance with a shareholders'agreement unless certain changes in the 'shareholdings trigger an earlier redemption.

Under the terms of the agreement governing repayment of the loan, no amounts arerepayable until the amounts owed from the subsidiary undertaking, in respect of thepayments received subject to clawback, have been satisfied in full. It is thereforeanticipated that the loan wil be repayable for a nominal amount of £1. Accordinglythe loan has been written down (in 2000.,01) to reflect the anticipated repayableamount.

The amount due to the minority shareholder was written down in full in 2000/2001(Note 21). .~

43


Name of UndertkingBusiness

Interest Class of Shares Nature of

Speke Garston Developments Ltd 80.1 % Ordinary Shares Development of Speke10p Garston, Liverpool

The Estuary Management Company 80.1 %Limited (A subsidiary of Speke GarstonDevelopments Limited)(Limited by guarantee).

Provision of services atthe Estuary CommercePark

The total assets less total liabilities and financial results of The Estuary ManagementCompany are not material to the Group.

Key Financial Results of Estuary Management Company Limited

2002 2001£'000 £'000

Lòss for the year after taxation

Reserves 5 5

Balances between Estuary Management Company Limited and the rest of the Group

2002 2001£'000 £'000

Amounts due to Speke Garston Developments Limited 19 18

Amountsdue to Northwest Development Agency 40 2

Balances due to the Northwest Development Agency are included within other

debtors (Note 15).

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44


ASSOCIATED UNDERTAKINGS

Group£'000

Agency£'000

Share of net assets

1 April 2001 528

Provision

At 1 April 2001 (528)

Share of net assets at 31 March 2002

Share of netassets at 31 March 2001

Name of Undertaking Interest Class of Nature of

Shares Business

Associated Undertaking

Maryport Developments 20.4% Ordinary Management ofLimited Maryport Harbour

101 Redeemablepreferenceshares

The investment in Maryport Development Limited was provided for in full in1999/2000 to reflect Northwest Development Agency's intention to withdraw from thisinvestment on 31 sI March 2003.

.~

45


JOINT VENTURES

Name of Undertaking Interest Class of

SharesNature of Business

New East Manchester Limited(Limited by Guarantee)

Liverpool Vision Limited

(Limited by Guarantee)

331/3 % Regeneration of EastManchester

Regeneration ofLiverpool

331/3 %

The total assets and total liabilties and financial results of each of the aboveundertakings are not material to the Agency, or the Group.

At 3151 March 2002 (31$1 March 2001-£188,990 due to New East ManchesterLimited) there were no amounts owed to or from the Joint Venture companies andthe Group. Amounts due to Joint Ventures are included within other creditors.

14 DEVELOPMENT ASSETS

Group2002 2001£'000 £'000

Agency2002 2001£'000 £'000

At 1 April 2001Additions in yearTransfer from English

PartnershipsSurplus on revaluation for theyearFair Value Adjustment - Assetstransferred from EnglishPartnerships

25,76534,0676,845

1,225

24,74610,953

16,165 .28,915

6,845

13,2462,864

184 184

Amounts written downOisposals

Valuation at 31 March 2002

334 334

68,236 35,883 52,259 16,294

(4,301) (8,770) (4,301 )(3,024) (1,348) (2,336) (129)

60,911 25,765 45,622 16,165

Note: The fair value adjustment relates to the assets transferred from EnglishPartnerships at historical cost being adjusted to reflect open market value.

~

46

NOTES TO THE FINANC'IAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2002 (CONTINUED)

The. amounts due from the subsidiary undertaking represents payments receivedsubject to clawback and have no fixed repayment date. On termination of theshareholders agreement the amount repayable is limited to the company's total netassets on 25 April 2003 after first providing for any EROF clawback due andtermination costs and actual and contingent liabilities at that date.

A valuation of the company's assets and liabiliies has been undertaken by thesubsidiary company in conjunction with a review of the budgets and business plansto 25 April 2003 as part of the formal exit plan. Based on this the directors of SpekeGarston Developments Limited are of the opinion that it is unlikely that the amountrepayable will exceed £8.1 m (£4.3m in 2000/01). Accordingly the amounts owedhave been written down to reflect the anticipated repayable amount.

1n

47


16 CREDITORS: Amounts fallng due within one year

Group Agency2002 2001 2002 2001£'000 £'000 £'000 £'000

Other taxes and social security 217 195 217 195Trade creditors 13,057 3,656 12,099 3,112Rural loan interest due to OETR 22 22Other creditors 163 91 163 91Corporation tax 1,788 1,788Deferred Income 2,195 2,578 2,195 2,180Accruals 8,014 110 8,014 110

23,646 8,440 22,688 7,498

1t

48


The provision for environmental liabiliies represent known liabilities for coston specific sites which currently have no market value.

The major components of the provision for deferred taxation which has beenfully provided at a corporation tax rate of 30% are as follows:

Accelerated capital allowances

Group2002 2001£'000 £'000

(106)

(106)

Agency2002 2001£'000 £'000

(106)

(106)

17

49


18A GOVERNMENT GRANT RESERVE. GROUP

Group

2002 2002 2001 200£'000 £'000 £'000 £'00

At1 April 2001 108,609 106,£

Fair Value Adjustment 334

Operational AssetsAdditions 1,997 5

Transfer to Investment Assets (431)

Disposals (18)

Depreciation (328) (279)Investment AssetsTransferred from properties occupied by theAgency 431

Additions 1,702 1,4:

Disposals (5,138) (5,961 )

Amounts written off (2,167)

Development Assets

Transferred from English Partnerships 6,845

Additions 28,915 2,8t

Disposals (2,336) (129)Amounts written off (4,301)

Amounts released to Income and 14,701 6,387Expenditure account (14,701) (6,38'

RevaluationsInvestment Assets 2,9E

Development Assets 1,225 1 E

Balance at 31 March 2002 135,357 108,6C

1!

50


188 GOVERNMENT.GRANT RESERVE -AGENCY

Agency2002 2002 2001 2001£'000 £'000 £'000 £'000

At 1 April 2001 114,429 112,7:

Fair Value Adjustment 334

Operational AssetsAdditions 1,997 5~

Transferred to Investment Assets (431)

Disposals (18)Depreciation (328) (276)Investment AssetsTransferred from properties occupied by the 431Agency

Additions 1,702 1,4f

Disposals (5,138) (5,961 )

Amounts written off (2,167)Development Assets

Transferred from English Partnerships 6,845

Additions 28,915 2,8E

Disposals (2,336) (129). Amounts written off (4;301 )

. Amounts released to Income and (14,701 ) (6,384)Expenditure account (14,701 ) (6,38.iRevaluationsInvestment Assets 2,98

Development Assets 18

Balance at 31 March 2002 139,952 114,42

~--

51


19 INCOME AND EXPENDITURE RESERVE

Group Agency2002 2001 2002 200'£'000 £'000 £'000 £'OO(

At 1 April 2001i\~l

9,940 10, "to'! (1,861) 2.",66Transferred from predécessor organisations1 April 2001 (696) Br (696) ~Other reserve release 257 (25) 257 (2Subsidiary Undertaking (227)Surplus/(Deficit) for year 4,327 3,889 3,374 (4,50

Balance at 31 March 2002 13,828 9,940 1,074 (1,86

20 OTHER RESERVES

Group Agency2002 2001 2002 2001£'000 £'000 £'000 £'000

Balance at 1 April 2001 257 76 257 76

Movement in year (257) 181 (257) 181

Balance at 31 March 2002 257 257

21 LOANS: Amounts repayable after more than one year.

Loan Stock

Group2002 2001£'000 £'000

3,750

(3,750)

Agency2002 2001£'000 £'000

Amounts written down in year

.~,'/'

52


Loan Stock of £3,750,000 was issued on 10lh July 1996 by the Agency's subsidiarySpeke Garston Developments Limited. It is unsecured and no interest is payableunless written notice is received from the stockholder with the Agency's agreement.No notice has been received to date. 'The loan stock is redeemable on 251h April 2Q03 in accordance with a shareholders'agreement unless certain changes in the shareholding trigger earlier redemption.

Under the terms of the agreement governing repayment of the loan stock, noamounts will be repayable until the amounts due to ourselves, in respect of grantsreceived and subject to c1awback, have been satisfied in full. It is thereforeanticipated that the loan stock wil be repayable for a nominal amount of £1.Accordingly the loan stock has been written down in full in 2000-01 to reflect theanticipated repayable amount. This treatment has been agreed with the third partywho is entitled to repayment.

22 RECONCILIATIONS OF NET CASHFLOWTO MOVEMENT IN NET FUNDS

Increase in cash for the period

2002£'00

2,667

Change in net funds 2,667

2,665

5,332

Net funds at 1 April 2001

Net Funds at 31 March 2002

23 OPERATING LEASES

As at 31 March 2001 the Agency had annual commitments under operatingleases as follows:

2002Buildings Others£'000 £'000

2001Buildings Others£'000 £'000

Leases expiring:-- within one year

. . -eetween-one-andfive-years-.- over five years

27823

81109

287103

94146

850 190 390 240

Rental costs of operating leases are charged to the Income and ExpenditureAccount on a straight line basis over the term of the lease. Operating leasecommitments over 5 years relate primarily to the Agency's Headquarters atWarrington.

~

53

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2002 (CONTINUED

24 CONTINGENT LIABILITIES

At 31 March 2002 there were no significant contingent liabilities (2001 nil).

25 COMMITMENTS

AsRestated

2002 2001£'000 £'000

Expenditure authorised by the Board andcontracted for at 3151 March amounted to:CapitalGrant

3,100193,400

1,900182,400

Grant commitments relate to programme expenditure in relation to the Land &Property Programme, Single Regeneration Budget, Skills Development Fund,Rural Programmes and the Regional Innovation Fund.

The figures now include commitments for the SRB programme for only oneyear as opposed to lifetime SRB commitments previously shown. Althoughthere is a reasonable expectation that commitments beyond one year willmaterialise grant offers for this programme are subject to annual contract.

26 FINANCIAL INSTRUMENT

The agency has no borrowings and relies primarily on departmental grants forits cash requirements and is therefore not exposed to liquidity risks. It has nomaterial deposits and all material assets and liabilties are denominated insterling, so it is not exposed to interest rate risk or currency risk. Transactionsentered into which result in debtors due after more than one year have a lowcredit risk.

. 27 POST BALANCE SHEET EVENTS

With effect from 1 April 2002 responsibility for Regional Selective Assistance(RSA) with offers less than £2m transferred from Government Office NorthWest. Related assets and liabilities transferred to the Agency on that date. Itis not possible at this time to place a financial value on these transfers. Netassets transferred will be brought into account during 2002/03.

With effect from 1 April 2002 the Agency ceased to have financialresponsibility for the Rapid Response Fund. Responsibility for theadministration of this fund transferred to the Employment Service (Departmentof Work and Pensions). As at 31 March 2002 there were current liabiliies of£22,434.

10

54


28 RELATED PARTY TRANSACTIONS

The Northwest Development Agency is a Non-Departmental Public Bodysponsored by The Department of Trade and Industry (OTI). OTI is regardedas a related party with which, during the year, Northwest Development Agencyhas had a significant number of material transactions.

The Office of the Deputy Prime Minister (formerly OTLR) is the sponsor bodyof English Partnerships and therefore English Partnerships is also regarded asa related party. During the period, the Agency and English Partnerships haveacted in partnership on a number of projects and have alsò transacted inrespect of a service level agreement under which English Partnershipsprovides certain support functions for the Agency.

Board members took no part in the discussions or in the subsequent decisionsby.the Board on proposals which concern organisations that members haveconnections as reported on the register of member's interests,

During the year none of the Board members, key management staff or otherrelated parties has undertaken any material transactions with the NorthwestDevelopment Agency apart from those detailed on pages 55 and 56.

1V

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57

NORTHWEST DEVELOPMENT AGENCY

ACCOUNTS DIRECTION GIVEN BY THE SECRETARY OF STATE WITH THECONSENT OF THE TREASURY, IN ACCORDANCE WITH SECTION 14(2) OF THEREGIONAL DEVELOPMENT AGENCIES ACT 1998

1. The annual accounts of Northwest Development Agency Regional Development

Agency (hereafter in this accounts direction referred to as "the Agency") shall give a trueand fair view of the income and expenditure and cash flows for the year and the state of . I

affairs at the year end. Subject to this requirement, the annual accounts shall be I

prepared in accordance with:-

(a) the accounting and disclosure requirements given in Government Accountingand in the Treasury guidance Executive Non-Deparlmental Public Bodies AnnualReports and Accounts Guidance (issued July 2000), as amended or augmentedfrom time to time, and subject to Schedule 1 to this direction;

(b) any other guidance that the Treasury may issue from time to time in respectof accounts that are required to give a true and fair view;

(c) any other specific disclosure requirements of the Secretary of State.

insofar as these requirements are appropriate to the Agency and are in force for theyear for which the accounts are prepared, and except where agreed otherwise with theSecretary of State and with the Treasury in which case the exception shall be describedin the notes to the accounts.

2. Schedule 1 to this direction gives clarification of the application of the accounting anddisclosure requirements of the Companies Act 1985 and accounting standards and alsogives any exceptions to standard Treasury requirements. Additional disclosurerequirements of the Secretary of State are set outin Schedule 2.

3~ This direction shall be reproduced as an appendix to the annual accounts.

4. This direction replaces that dated 31 March 1999.

Signed by authority of the Secretary ofState for the Environment, Tr~nsport and the Regions

Richard. Allan.........................................

Date .301h March 2001................... ...... ..........

A grade 5 offcer in the Department ofthe Environment, Transport and the

Regions

NORTHWEST DEVELOPMENT AGENCY .~

58

DIRECTION TO THE ANNUAL ACCOUNTS

SCHEDULE 1

1. Expenditure in theincomH and expenditure account shall include a notional cost ofcapital, at 6% of the average net assets during the year. This amount shall be reversedafter the line showing the surplus or deficit for the year.

2. Grants awarded by the Agency shall be included as expenditure in the income andexpenditure account when there is a constructive obligation to pay the grant.

3. Stocks and work:"in-progress shall be included in the balance sheet at the lower ofestimated replacement cost and estimated net realisable value.

- 4~ Government grants used to pay for fixed assets shall be credited to a grant reserve.This is different from accounting standard SSÀP4 which says that such grants shouldbe credited to deferred income.

5. Revaluation gains on fixed assets paid for from government grant shall be. taken tothe grant reserve in the balance sheet. This is contrary to the Companies Act 1985which requires such gains to be credited to the revaluation reserve.

6. On the disposal of a fixed asset paid for wholly by government grant, an amountequal to the profit or loss on disposal shall be transferred from the grant reserve to theincome and expenditure account. Where government grant was only used to pay forpart of the cost of the asset, the amount of this transfer shall be reduced in proportion.These requirements are different from those in accounting standard FRS3 which saysthat an amount transferred to a reserve, other than from the income and expenditureaccount, should not be recognised in subsequent income and expenditure accounts.

7. A provision shall be made for deferred tax in accordance with current accountingstandards.

8. The foreword and balance sheet shall be signed and dated on behalf of the boardmembers and by the accounting offcer.

'1lS

59

NORTHWEST DEVELOPMENT AGENCYDIRECTION TO THE ANNUAL ACCOUNTS

SCHEDULE 2

ADDITIONAL DISCLOSURE REQUIREMENTS

The following information shall be disclosed in the annual accounts, as a minimum, andin addition to the information Jequired to be disclosed by paragraphs 1 and 2 of thisdirection.

1. The foreword

A statement on the Agency's policy for conserving energy, reducing waste andminimising the releäse of greenhouse gases.

2. The income and expenditure account or the notes thereto

(a) the following income -

(i) grants

(ii) proceeds on the disposal of development properties

(iii) proceeds on the disposal of fixed assets

(iv) rents and maintenance charges receivable

(~) joint venture profits

(b) the following expenditure -

(i) . book value of development properties sold

(ii) movements in provisions for losses on development properties

(ii) jointventur6 losses

(iv) debts written off and movements in provisions for bad and doubtfuldebts

3. The notes to the annual accounts

(a) an analysis of grants from:

(i) the Department of the Environment, Transport and the Regions

(ii) European Community funds

17

60


(iii) other sources

(b) For grants from the Department of the Environment, Transport and theRegions the following information shall also be shown:

(i) the amount that the Agency is entitled to receive for the year

(ii) the amount received during the year

(iii) the amount released to the income and expenditure account for theyear

(iv) the amount used in the year to acquire or improve fixed assets

(v) movements on amounts carried forward in the balance sheet underdebtors, creditors, deferred incomeor deferred grant reserve

(c) an analysis of grants included as expenditure.in the income and expenditureaccount and a statement of the total value of grant commitments not yet includedin the income and expenditure account;

*(d) a report on the emoluments of the chief executive and of each individualboard member and senior manager during the year (with separate disclosurewhere more than one person occupied an office). The report shall include fulldetails of all elements in the remuneration package of each person, such asfees, salary, annual bonuses, payment on términation of offce, other taxablebenefits, pension contributions, and the performance related elements of these(for which the basis on which the performance is measured shall be explained).For each board member, the report shall also show the time commitment interms of days per month;

*(e) if a board member, the chief executive or a senior manager has beenappointed for a fixed termor is on a fixed-term service contract, the term shall bestated together with details of any predetermined compensation on terminationof office;

*(f) a statement of the pension entitlements earned by the chief executive and byeach individual board member and senior manager during the year, disclosed ona basis recommended for non-departmental public bodies by the Treasury, orrecommended for companies by the Faculty of Actuaries or the Institute ofActuaries;

(g) details of employees, other than board members, showing:-

17

61


(i) the average number of persons employed during the year, includingpart-time employees and secondees, analysed between appropriatecategories

(ii) the total amount of loans to employees

(ii) employee costs during the year, showing separately:-

(1) wages and salaries

(2) early retirement costs

(3) social security costs

(4) contributions to pension schemes

(5) payments for unfunded pensions

(6) other pension costs;

(h) a statement showing the movements during the year on long term loansgiven by the Agency and on current asset investments held;

(i) a statement of outstanding commitments for loans granted and of committedlending in future periods;

U) an analysis of liquid resources, as defined by accounting standard FRS1(revised);

(k) in the note on debtors, prepayments and payments on account shall each beidentified separately;

(I) particulars of any transaction, arrangement or contract (other: than a contractof service or of employment with the Agency), including transactions at arm'slength, entered into by the Agency with another party, exceeding £5,000 in value,in which party a board member, an executive, a senior employee, or a personconnected with any. of the foregoing, at any time during the year, had a directfinancial interest that was notified to the Agency. For these purposes, a senioremployee means someone whose emoluments in the year (excluding pensioncontributions but including the other elements mentioned in sub-paragraph 3(d),above) exceeded £50,000; and a connected person shall be as defined insection 839 of the Income and Corporation Taxes Act 1988 or supersedinglegislation and including a member of the same household;

1('- .' i...j. ./

62


(m) a statement of losses and special payments during the year, beingtransactions of a type which Parliament cannot be supposed to havecontemplated. Disclosure shall be made of the total of losses and special

payments if this exceeds £100,000, with separate disclosure and particulars ofany individual amounts in excess of£100,000. Disclosure shall also be made ofany loss or special payment of £100,000 and below if it is considered material inthe context of the Agency's 'operations.

* 3(d), 3(e) and 3(f). Under the Data Protection Act 1998, individuals need to give theirconsent for some of the information in these sub-paragraphs to be disclosed. If consentis withheld, this should be stated next to the name of the individuaL.

~

Documents

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