a year in review with our annual report and accounts 2009/10

8/7/2019 A Year in Review with our Annual Report and Accounts 2009/10

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ayearinreview

wiTH ourannualreporT

andaccounTs20092010


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A YeAr in review

ChAirmAns stAtement 01

Chief exeCutives review 03

finAnCiAl review 05

the future Queen eliZABeth OlYmpiC pArK 07

lOOKing BACK At 2010 09

A YeAr in review 11lOOKing fOrwArd tO 2011 13

BOArd Of direCtOrs 15

direCtOrs repOrt 19

AnnuAl repOrt And ACCOunts 20092010 22

COrpOrAte gOvernAnCe repOrt 23

direCtOrs remunerAtiOn repOrt 28

independent AuditOrs repOrt 30

finAnCiAl stAtements 32

nOtes tO the finAnCiAl stAtements 35

Olympic Park Legacy Company

A Year In Review

Produced

March 2011

Olympic Park Legacy Company Limited

5th foor

29-35 West Ham Lane

Stratord

London

E15 4PH

www.legacycompany.co.uk

Registered company number: 06900359

This document is printed on FSC certied

stock using vegetable dye inks.

Table ofconTenTs


3/25

BArOness fOrd


A Year In Review

Chairmans Statement0102

The launch o our plans or the Olympic Park on

7 October 2010, was the result o over a year

o intense work since the establishment o the

Olympic Park Legacy Company. These plans will

orm the bedrock o the development o the

Olympic Park.

Since its incorporation in summer 2009, the

Company has established itsel on a irmooting, and has put in place the oundations or

delivering a lasting legacy in what will be known

ater the London 2012 Olympic and Paralympic

Games as the Queen Elizabeth Olympic Park. We

have set out a clear vision or the Park, and or

our role in planning, developing and managing

this unique portolio o assets. Our task is simply

stated: we will be delivering a new piece o city,

well-connected to the vibrant communities o

East London and oering the best o London

in one place to visitors, local people and new

residents alike.

In our rst period o operation to March 2010,

our primary ocus has been on establishing the

Olympic Park Legacy Company as a credible

and delivery-ocused organisation. Working

with our Founder Members, the Company has

appointed an expert Board, bringing together

leading gures rom local communities, sport,

real estate, event management, social enterprise

and other business sectors. The Board, which

met or the rst time in December 2009, also

includes Andrew Altman, our Chie Executive,

and Jonathan Dutton, our Executive Director o

Finance and Corporate Services.

Under the leadership o this Board, the Company

has put in place its top team, and has taken over

ownership o the Olympic Park and Three Mills

Estate rom the London Development Agency.

We have built up the organisation, revised

our legacy plans in preparation or planning

applications, and the search or operators or

key acilities ater the Games is well underway.

This solid start refects not only on the

Companys own team, but also on our partners

commitment to working together to deliver

a great legacy rom the host boroughs and

communities surrounding the Olympic Park,

to other members o the Olympic amily,

the Government and Mayor o London, and

delivery partners like LCR and Westeld, and the

consortium delivering the Olympic Village.

Adding to these achievements in the coming

year will be critical or the Company. Tough scal

conditions, a potentially remodeled uture as a

Mayoral Development Corporation, and the need

or ever closer partnership with other members

o the Olympic amily during and ater the

Games will place a premium on the Companys

continued ability to adapt and respond to

change, while remaining ocused on its goals.

Over the last year we have enjoyed tremendous

support rom our Founder Members, the Mayor

o London and the Government. This has been

key to our continuing progress and we look

orward to deepening these relationships in the

year to come.

Baroness Ford

Chairman

24 November 2010

theCOmpAnYs tAsK is tO

deliverA new pieCeOf the

CitYOfferingtheBest Of

lOndOn in OneplACe

lOndOners And the wOrld

will Be ABle tO lOOK BACK

And see this prOjeCt As A

defining mOment in the histOrY

Of A greAt glOBAl CitY

BArOness mArgAret fOrd,ChAirmAn, OlYmpiCpArK legACYCOmpAnY


4/25

When I began work as Chie Executive o the

Olympic Park Legacy Company in August 2009,

my immediate priorities were to secure control

o the Olympic Park land, to undertake a review

o the legacy plans prepared to date, to deine

our work programme or the years ahead, and

to recruit a senior management team equal

to the tasks.

Just over a year later, signiicant progress has

been made in all these areas. The Olympic Park

and Three Mills Estate are now in our ownership.

Our plans have been revised to sharpen our ocus

on amily housing, a great sporting legacy, and

a beautiul park that is welcoming to all, and ull

o lie year round. Also, construction has begun

on the ArcelorMittal Orbit a spectacular visitor

attraction or East London. In addition to a highly

skilled Board, we have recruited an Executive

Management Team with global experience in

event management, visitor attractions, real

estate, planning and regeneration.

This skilled core team has been supplemented by

44 sta inherited rom the London Development

Agency, who bring wide-ranging experience and

deep understanding o the Olympic Park area

and its challenges. From our Stratord oices,

just a ew hundred yards rom the Olympic

Park and neighbouring Stratord City/Westield

development, we can see the huge scale o

development underway, and the potential and

challenge that the legacy oers.

There are three phases to delivering a lasting

legacy in the Olympic Park. In the period running

up to the London 2012 Olympic and Paralympic

Games, our ocus will be on planning or ater the

Games, promoting our plans to potential investors

and developers, and orming partnerships or

delivery. Ater the Games, working closely with

the Olympic Delivery Authority, we will spend a

year to eighteen months converting the parkland

and venues or their legacy uses. As the Park

re-opens rom summer 2013, the ocus will turn

to the delivery o our plans, with an exciting

Chie Executives Review0304

programme o events in world-class venues, an

outstanding natural setting, and an evolving

coniguration o temporary and permanent

developments and visitor attractions.

To maximise commitment rom sponsors and

investors while the spotlight is on London, we

need to make the most o the period beore

the Games. We are already engaged in a ormalprocess to secure a sustainable legacy use

or the Stadium, and seeking expressions o

interest or the Press and Broadcast Centres. In

the coming months we will begin the process o

procuring tenants, operators and contractors or

the rest o the Olympic Park and venues, apply

or planning permission or the development o

legacy communities, and start searching or the

development partners who will help us to create

new neighbourhoods over the next 25 years.

At the same time, we will also develop our plans

or events and visitor attractions to make the

Olympic Park a new destination or London and

a compelling ocus or investment. We will work

with our partners to develop the policies and

programmes to ensure that the Olympic Park

creates a lasting legacy or local communities

enabling their participation in the opportunities

we oer, and supporting the local boroughs

target o convergence with the rest o the capital.

Funding will remain a challenge in current iscal

circumstances, and the Company will also need

to adapt as we prepare to work ever more

closely with the Olympic Delivery Authority and

other partners to create a seamless transition

rom Games to legacy. We are optimistic about

the uture and look orward to addressing the

challenges that it holds.

Andrew Altman

Chie Executive

24 November 2010

in 2010, theCOre teAm

wAs supplementedtO

deliverA lAstinglegACY

fOrthepArK


A Year In Review

Andrew AltmAn


5/25

The Company was established in May 2009.

Funding o 884,000 was provided by the

London Development Agency to enable the

necessary organisation and structure to be put

in place or the Company to operate eiciently

and eectively. Further grant income totalling

3.4m was provided by the London Development

Agency and Department or Communities and

Local Government to cover operational costso the Company during the period ended

31 March 2010.

Despite making a small deicit during this

period, the Company generated a positive

cash balance aided by tight inancial control.

The Company has adopted a prudent inancial

management approach and is working towards

the maintenance o cash balances that meet

its expected operational requirements or a

period o six months.

The Board has adopted an operational unding

budget o 9m or the 2010-11 inancial year

o which 7.5m is being unded by the London

Development Agency and 1.5m by Department

or Communities and Local Government. The

programme budget o 10.2m is unded by the

London Development Agency. Legal responsibility

or this budget transerred to the Company on

30 September 2010. Simultaneous with the

transer o the Olympic Park land and Three Mills

Estate; together with certain sta o the London

Development Agency that had been working on

Olympic legacy matters. Prudent management o

expenditure will assist the Company in ensuring

that it continues to meet its delivery targets withthe inancial resources available.

The land transer has ensured that the Company

owns the property assets it needs in order to

deliver on its long term goals. Government has

agreed to provide the inancial resources to the

Company in April 2011 in order to settle the

purchase price o the acquisition o 138m and

in October 2010 unded the Stamp Duty Land

Tax liability o 5.5m.

The Company has made a submission to

Government as part o the Comprehensive

Spending Review in order to secure unding or

the our inancial years beginning in April 2011.

While the over-arching details o the settlement

have been announced, the Company is in

discussions with Department or Communities

and Local Government about the detail o the

budgets it will receive. We look orward to the

uture with conidence.

Jonathan Dutton

Executive Director o Finance

and Corporate Services

24 November 2010

Financial Review0506 Olympic Park Legacy CompanyA Year In Review

jOnAthAn duttOn

jOnAthAn duttOn,exeCutive direCtOrOf finAnCe AndCOrpOrAte serviCes,

OlYmpiCpArK legACYCOmpAnY

the lAnd trAnsfer

hAs ensured thAt the COmpAnY

Owns the prOpertY Assets it

needs in Order tO deliver

On its lOng term gOAls

A pOsitiveCAsh

AlAnCewAs generAted,

AidedBY tight

finAnCiAlCOntrOl


6/25

The Future Queen Elizabeth Olympic Park0708 Olympic Park Legacy CompanyA Year In Review

Our plansThe uture Queen Elizabeth Olympic Park will

bring together the best o London, all in one

place. At its core will be the creation o amily-

ocused neighbourhoods; making the Park a

top visitor destination; ensuring the venues

provide a lasting sporting legacy; the creation o

commercial and job opportunities and helping to

stitch together the areas communities through

new transport connections.

Londons new global attraction

The Legacy Companys ambition is or the Park

to become one o Europes premier visitor

destinations within ive years o the closing

ceremonies o the London 2012 Olympic and

Paralympic Games.

Venues including the Stadium, Aquatics Centre

and the ArcelorMittal Orbit will become a

magnet or visitors, schools and community

sport as well as international sporting events and

commercial and cultural attractions.

The Olympic Park Legacy Company aims to bring

the Parks 250 acres o green and open space to

lie through a thriving programme o events and

attractions that will capture the imagination o

domestic and international visitors.

Work has begun on an events programme to

be rolled out rom mid 2013 and the Legacy

Company is calling on the market to come

orward with proposals. These could include

cultural estivals, open-air concerts, ood

markets, sporting and community events

and exhibitions.

South plazaThe Legacy Companys plans outline two

distinctive areas. The ArcelorMittal Orbit will be a

key part o an urban entertainment plaza in the

south, with the Stadium and the Aquatics Centre.

It will become a crossroads or sport, culture

and quality design with a rolling programme o

events rom mid 2013, when the Park reopens.

This area will sit next to Europes largest urban

shopping centre, Westield Stratord City,

and Stratord station, one o Londons largest

transport hubs, served by nine train and tube

lines, and a planned Crossrail stop.

North park

The north o the Park eatures a river valley,

centred on revitalised waterways, landscaped

parkland and green space, oering outdoor

activities including play areas and cycle paths.

Cyclists will also be able to use the Velodrome,

outdoor road circuits and o-road trails at the

VeloPark, while others may choose to play

hockey or tennis at neighbouring Eton Manorsports complex, with both venues managed by

the Lee Valley Regional Park Authority.

A new creative district will sit in the north-west

o the Park in Hackney. It will be a mixed-use

commercial and amily housing area with the

Press and Broadcast Centres campus-style

business environment. The Multi-Use Arena will

border both o these distinctive areas, becoming

a hub or community activity by oering a range

o indoor sports and the opportunity to host

cultural and business events.

A VeloPark consisting o the Velodrome,

a BMX track, mountain bike trails and a

reinstated road circuit

The indoor Multi-Use Arena with

potential use or both sporting and

cultural events, with a seatingcapacity o 7,500

Londons largest lm studios at 3 Mills

Studios with 15 stages covering 20

acres on the southern ringe o the Park

aquaTics cenTre

THe sTadium

THe velopark

3 mills sTudios

The Press and Broadcast Centres combining over 90,000 square

metres o business development and oce space

The mixed-use Eton Manor sports

complex comprising indoor and

outdoor ootball, tennis and

hockey acilities

eTon manor sporTs complex

Retail development onthe Parks doorstep,with over 300 shops,restaurants and barsand hotel acilities

sTraTford ciTy

mulTi-use arena

90,000 sqm of office space

wesTfield

Will oer two

50-metre pools

and a diving

pool, together

with seating

or up to 3,500

spectators

250 acres o green and open space

parklands &public realms

5 new neigHbourHoodsWith a ocus on amily housing

A venue that could host a number osporting activities and has a fexible

design that enables it to be congured

to have a capacity o 90,000


7/25

Secure control over the Olympic park land

On 30th September 2010, we completed the

transer o the Olympic park land and seconded

sta rom our working partner, LDA, with the

consent o our Founder Members, DCMS, CLG and

the Mayor o London. This concluded a lengthy

period where details had been ine tuned to

ensure a air deal or all, most importantly the

British public, so as to ensure a lasting legacy romthe 2012 Games could be achieved and delivered.

Confirm use for the Olympic Stadium

On 12th November 2010 - ollowing a sot

market testing exercise in March and a bidding

process launched in August - the Legacy Company

announced who we would enter into negotiations

with or the inal stage o the process to secure

the best uture or the Stadium.

The two shortlisted bidders are: a consortium led

by Tottenham Hotspur Football Club with AEG;

and a consortium o West Ham United Football

Club and the London Borough o Newham. These

negotiations are ongoing with a preerred tenant,

who we intend to have in place by the end o the

inancial year in 2011.

Looking back at 20100910

Confirm strategy for Press Centre

and Broadcast Centre

The market testing exercise or the Press and

Broadcast Centres closed at the end o November

2010 with a wide-range o expressions o interest

rom dierent sectors and organisations.

An exciting development came in the same

month, as the Prime Minister announced theGovernments ambition to align with us and

develop the Press and Broadcast Centres, and

surrounding north-west district o the Park into a

new, world-leading creative and technology hub

known as East London Tech City. The intention is

to build on the success o creative hubs such as

those ound in Shoreditch, Old St and Soho.

Continuing to build strong relationships

Legacy Youth Panel In December 2010, we

recruited members or our Youth Panel or the

third consecutive year. The Panel gives young

people a voice on the uture plans or the Park and

the opportunity to meet key people, helping them

shape the uture o their area.

Lecture Series We ran another successul

series o lectures (now in its third year), hosted

at universities across London. The panel o

speakers consisted o senior sta rom the

Company and external partners, giving

attendees the opportunity to debate signiicant

topics with relevant specialists. In total, 1,300

people have attended all or part o our lecture

series since 2008.

Schools Programme For the second year running,

we undertook our schools programme as a joint

project with Westield. The programme targeted

our secondary schools on the ringes o the Park

or a programme o ongoing engagement.

Sta volunteered to attend to talk about their

work on the legacy plans and uture Park. The

programme consisted o an assembly and

three workshops ocused on local democracy,

regeneration and community.

mAjOrAChievements

in 2010inCluded

BuildingstrOng

relAtiOnships with

theCOmmunitY


A Year In Review

this is One Of the BOldest

urBAn trAnsfOrmAtiOns in

the wOrld Building On the Best

Of lOndOn tO BeCOme One Of the

CitYs greAt plACes

Andrew AltmAn,ChiefexeCutive, OlYmpiCpArK legACYCOmpAnY


8/25

112 A Year in ReviewOlympic Park Legacy CompanyA Year In Review

2009 2010

January2009overview

New Executive Directors o Marketing and

Communications, Operations and Venues and

Finance and Corporate Services appointed

Culture, Media and Sport Select

Committee submission

Attended Vancouver 2010

Winter Games

february

First Assembly Plenary appearance

Delivery Plan with our Top 10

or 2010 milestones agreed

Youth Panel 2010 intake

appointed

Further appointments made in

Real Estate and Planning

Stadium sot market testing

process began

Attended MIPIM 2010 with Mayor

o London

Companys irst Culture,

Media and Sport Select

Committee appearance

marcH

Memorandum o

Understanding signed with

Field Studies Council

Market research undertaken

on the uture name or the

Park ater the 2012 Games

Changing Places volunteering

programme began may

June

Market testing process

began to ascertain interest

in Estates and Facilities

Management o the Park and

venues ater the Games

Attended Sport Accord 2010

Engagement programme

with 2012 sponsors began

april

Legacy Youth Panel

outlined its vision or

the Park

Presented Legacy Master

Plan to CABE Design

Review Panel

Land and sta transer

approved by all parties with

ownership passing to the

Legacy Company, including 3

Mills Studios in East London

The agreement or the Parks

major new attraction - the

ArcelorMittal Orbit signed

Press and Broadcast Centres

expressions o interest

process began

Submission to Economic

Development, Culture, Sportand Tourism Committee on

the legacy o the venues

Future name o the Park

secured with agreement rom

our Olympic partners, Central

Government, the Mayor o

London and the Royal Family

Event held at BT Tower to launch

our plans and unveil the uture

name o the Park

Initial preparations or the set-up

o an Olympic Park charity began

New website launched to promote our

vision and plans or the uture Park

Spoke at the Aspire4Sport

conerence in Qatar

Presented Legacy Master Plan at

second CABE Design Review Panel

Secured unding or the

legacy o the Park announced

by Communities and Local

Government minister, Bob Neill

Autumn lecture series took place

Prime Minister, David Cameron,

visited the Park and unveiled theGovernments plans or an East

London Tech City

Construction o the ArcelorMittal

Orbit began

Communities and Local

Government Select Committee

taken through our plans or the

uture Park

Announcement made o the two

shortlisted bidders or the StadiumsepTember

november

ocTober

augusT

July

Targeted consultation

on the VeloParks Cycle

Circuit began

Recruitment or the 2011

intake o the Legacy

Youth Panel began

Negotiations with

shortlisted applicants

or the Stadium

progressed

Formal bidding process or the long-

term lease o the Stadium launched

Attended Beijing legacy conerence

december

may

augusT

ocTober

november

Legacy Company

incorporated

Chairman appointed

CEO appointed

Company moved to

new oice in Stratord

Board appointed

Began to engage with new Ministers

ollowing the 2010 General Election


9/25

Looking orward to 2011314

ArcelorMittal Orbit

We will launch an expression o interest process

to appoint an operator or this unique attraction,

on a long-term commercial basis beore, during

and ater the London 2012 Games.

Stadium

We will have completed the shortlisting phase or

inding an operator or the Stadium ater theGames, with a preerred tenant announced by

the spring 2011.

Operating the Park

We will also launch the process to ind operators

or the Aquatics Centre and Multi-Use Arena, as

well as or the Estates and Facilities Management

o the entire site, including cleaning, security and

in some cases catering, ater the Games.

Community Engagement

We will meet with community and aith groups,

members o the public and other interested

parties to communicate in person the inalised

vision or the Park. This is part o our ongoing

commitment to engage the community and

wider audience in the uture plans or the Park.

Naming Competition

In early 2011, we will run a public competition

online to help name the ive new neighbourhoods

that will exist in the Park ater the Games, as

proposed by the new Park legacy plan. The

competition will run over six weeks and will be

aligned to the public engagement period on the

legacy plans, giving members o the public the

opportunity to suggest the names they thinkwould best suit the uture neighbourhoods.

Landowners

A marketing sub-group or the Legacy

Landowner Group is being set-up and led by the

Legacy Company to help uniy the messaging

surrounding the Park.

Legacy Youth Panel

Through a series o monthly workshops and

site visits across London, our Youth Panel will

explore the impact o regeneration and consider

key themes such as community, environment

and inrastructure in terms o how these aspects

will develop in the Park. This inormation will be

collated in blogs, ilms and reports produced by

the Panel and presented to the Legacy Company.

Members o the Panel have grown into high

proile public advocates or the legacy o the Park

and regularly appear in local papers, on radio

and TV, including BBC London. In January 2011,

a member o the Panel presented at the host

borough MP brieing. They have also requested to

meet Nat Wei o the Big Society Network and are

working with Company sta to understand our

corporate priorities.

Schools Programme

In February 2011, a class rom each o the our

participating schools with the best ideas will get

to present their proposals or interim use activity

to an expert panel, including our Board Member,

Nick Bitel and John Burton, Director o Westield

Stratord City.

in 2011, An expressiOn

Ofinterest prOCess

willBe lAunChedtOfind

An OperAtiOrfOr the

ArCelOrmittAlOrBit


A Year In Review


10/25

Board o Directors

Baroness Ford

Baroness Ford is Chairman

o the Olympic Park Legacy

Company. She j oined the

Legacy Company rom Royal

Bank o Canada, where she was

a Senior Adviser in the banks

Global Inrastructure Group. From 2002 until 2007

she was the Chairman o English Partnerships, the

national regeneration agency. Baroness Ford is

the Senior Independent Director o Serco plc, Non

Executive Director o Grainger plc and Chairman o

Irvine Bay URC.

Aman Dalvi

Aman Dalvi has lived in east

London all his lie.

He is Corporate Director,

Development and Renewal

at the London Borough o

Tower Hamlets, is a ormer

Chie Executive o Gateway to

London, ormer Chie Executive o Ujima Housing

Association and has extensive experience o

housing development and regeneration. He

leads on Tower Hamlets Olympic activities

and is a ormer member o the Board o

English Partnerships. He sits on the Board as an

individual member and not as a representative o

the London Borough o Tower Hamlets.

Keith Edelman

Keith Edelman was ormerly

the Managing Director

o Arsenal Holdings and

was instrumental in the

development o the

Emirates Stadium and the

attendant regeneration o

the surrounding area including the developmento Highbury Square. He is currently Chairman

o Nirah, the Senior Independent Director

o Supergroup plc and a Non Executive

Director o Beale plc and Saestore Holdings.

He was ormerly Chie Executive Oicer o

Storehouse plc, Managing Director o Carlton

Communications plc, Non Executive Director o

Eurotunnel and Chairman o Glenmorangie.

David Edmonds

David Edmonds has had

extensive experience

within the housing and

regeneration sectors

and was the senior civil

servant in charge o the

Governments Inner Cities

programme in England. He is a ormer Chie

Executive o the Housing Corporation, Board

member o English Partnerships and Chairman

o Crisis, the charity or the single homeless.

He was also the UKs Telecoms Regulator or

ive years and the Chairman o NHS Direct or

our years. He is currently the Chairman o the

Legal Services Board, and Chairman o logistics

company, Wincanton plc.

David is a Non Executive Director o property

company Hammerson plc and a Non Executive

Director o William Hill plc.

David Gregson

David Gregson is Chairman

o Phoenix Equity Partners,

a leading UK private equity

group. He is also Chairman

o Precise Media Group and

a director o Letts Filoax.

David is a Trustee o The

Climate Group and o WWF-UK, a member othe Advisory Board or The Sutton Trust and

Chair o Crime Reduction Initiatives, a leading

national crime reduction charity. David was

previously Chairman o the Mayor o Londons

Legacy Board o Advisors.

Ranjit Singh Baxi

Ranjit Singh Baxi is one o the

UKs most highly regarded

Asian business leaders. His

own business, J and H Sales

based in Redbridge, exports

waste paper rom Europe, the

UK and USA to the Indian sub-

continent and the Far East, and has become one o

the leading recycling export companies in Europe.

Ranjit is also a Divisional President o the Bureau

o International Recycling, an international

trade ederation based in Brussels and a Non

Executive Director o Think London. A Governor

o the University o East London, Ranjit is actively

involved with the UK Punjabi Community and is

the President o the World Punjabi Organisation

(European Division).

Nick Bitel

Nick Bitel is Chie

Executive o the London

Marathon and one o

the countrys leading

events experts. A partner

in sports law irm Max

Bitel Greene LLP, he is a

member o the Events or London Steering

Group, a member o the London Community

Sports Board and ormer Vice Chairman o

Wigan Athletic. He was recently appointed to

the Board o Sport England.

Robert John

Robert John has been a

director o a number o

private sector companies

which ocus on housing and

regeneration issues. He has

held senior roles at Canary

Whar and has a continuing

interest in transport and regeneration. He was

appointed Chairman o Wales in London in 2006

and is involved in a broad range o activities in

Wales. He also advises on property development

in Arica and India.

Philip Lewis

Philip Lewis is a chartered

surveyor and Chie Executive

o the property division o

the Kirsh Group and Non

Executive Deputy Chairman

o Lambert Smith Hampton.

Previously he was Chie

Executive o Milner Estates plc and Executive

Chairman o both Saestore plc and Hines UK.

He is a ormer Chairman o Sport England,

London and past President o the British Council

o Shopping Centres. He has held Non Executive

roles in a number o companies and is involved in

various charitable organisations.

516 Olympic Park Legacy CompanyA Year In Review


11/25

Board o Directors718 Olympic Park Legacy CompanyA Year In ReviewBoard o Directors

Lord Mawson

Lord Mawson is one o the UKs

leading social entrepreneurs.

Over 25 years he has created a

amily o projects, in particular

the renowned Bromley-by-Bow

Centre in East London. Today

he is leader, motivator and

adviser to major projects including St Pauls WayTransormational project in the London Borough o

Tower Hamlets and Water City, a visionary plan to

revitalise East London.

Elizabeth McMahon

Elizabeth McMahon is

Managing Director o

Madison Muir, strategic

marketing, brand and

business development

advisors. Liz was Head o

International Marketing or

the London 2012 Olympic and Paralympic Games

bid and was Director o Marketing Services at the

International Olympic Committee.

A ormer Director at Citigroup and JP Morgan, she

also managed the global corporate marketing and

communications department at 3M. She tutors

in marketing communications and sponsorship

at the Westminster Business School and the

George Washington University Olympic GamesMBA programme. Liz sits on the Corporate

Development Board o the NSPCC and the Board

o the International Womens Forum UK.

Jules Pipe

Jules Pipe was re-elected

as Mayor o Hackney or a third

term in May 2010, having

become the Boroughs irst

directly elected Mayor in

October 2002. He was also

elected as Chair o London

Councils in May 2010.

Tessa Sanderson

Tessa Sanderson is an Olympic

Gold Medalist, an ambassador

or the London 2012 Olympic

and Paralympic Games and

head o the Newham Sports

Academy, which she ounded

to ind and train grassroots

talented youngsters in Olympic sports. A ormer

Vice-Chairman o Sport England, she has won

Sports Personality o the Year and Athlete o the

Year three times and presented sport on various

international television channels. Tessa was

awarded the CBE in 2004.

Sir Robin Wales

Sir Robin Wales is the

directly elected Mayor

o the London Borough

o Newham. He irst

became a Councillor

in 1982 and waselected Mayor in 2002.

He was re-elected or a third term in 2010.

His interests include raising employment

and aspiration in the Borough. Sir Robin is

involved with a number o organisations

that are concerned with staging the

London 2012 Olympic and Paralympic

Games and ensuring the local legacy.

He is a local government Board member

on the London Organising Committee

o the Olympic Games, Chair o the six

Olympic Host Boroughs and a member

o the Olympic Park Regeneration

Steering Group.

In addition to these Non Executive Directors

o the Company, the Chie Executive, Andrew

Altman, and the Companys Executive Director

o Finance and Corporate Services, Jonathan

Dutton, are members o the Board.

Andrew Altman

Andrew Altman was ormerlyPhiladelphias irst Deputy

Mayor or Planning and

Economic Development

as well as Director o

Commerce and President

o Altman Development

LLC in New York City, leading large-scale, urban

development projects.

Andrew was also President and CEO o the

Anacostia Waterront Corporation in Washington

D.C, established to guide the revitalisation o

over 2,800 acres o urban waterront.

Jonathan Dutton

Jonathan Dutton qualiied

as a chartered accountant

with Price Waterhouse and,

ater a career in investment

banking with UBS and

Deutsche Bank, helped

establish the academiesprogramme o Oasis Community Learning.

Beore becoming Mayor, Jules was a

newspaper journalist, working or, among

others, the Sunday Times and Sunday

Telegraph, as well as serving as a ward

councillor rom 1996 to 2002, and Leader o

Hackney Borough Council rom June 2001

until elected as Mayor in 2002.


12/25

Directors Report920

OneOfthemAin

COmpAnYs gOAls

is tOdeliver

sOCiO-eCOnOmiC

Benefits fOr

theCOmmunities

surrOundingthepArK


A Year In Review

the OlYmpiC pArK And

surrOunding AreA is

lOndOns single mOst

impOrtAnt regenerAtiOn

prOjeCt fOr the next

25 YeArs

BOris jOhnsOn,mAYOrOf lOndOn

Principal activities

The Companys principal activity is the long

term development and management o the

Olympic Park and its venues ater the London

2012 Olympic and Paralympic Games to deliver

socio-economic beneits or the communities

surrounding the Park.

Directors and SecretariesThe Directors and Secretaries in oice during the

period were as ollows:

Chairman:

Baroness Ford (appointed 13 May 2009)

Non Executive Directors:

Ranjit Singh Baxi (appointed 16 December 2009)

Jeremy Beeton (appointed 13 May 2009;

resigned 16 December 2009)

Nick Bitel (appointed 16 December 2009)

Aman Dalvi (appointed 16 December 2009)

Keith Edelman (appointed 16 December 2009)

David Edmonds (appointed 16 December 2009)

David Gregson (appointed 13 May 2009;

resigned 16 December 2009; reappointed

16 December 2009)

Dan Hawthorn (appointed 13 May 2009;

resigned 16 December 2009)

Robert John (appointed 16 December 2009)

Sir Robert Kerslake (appointed 16 December

2009; resigned 22 September 2010)

Philip Lewis (appointed 16 December 2009)

Lord Mawson of Bromley-by-Bow (appointed

16 December 2009)

Elizabeth McMahon (appointed 16 December

2009)

Jules Pipe (appointed 16 December 2009)

Tessa Sanderson (appointed 16 December 2009)

Peter Smith (appointed 8 May 2009; resigned

13 May 2009)

Sir Robin Wales (appointed 16 December 2009)

John Walker (appointed 13 May 2009; resigned

16 December 2009)

Executive Directors:

Andrew Altman, Chie Executive (appointed

16 December 2009)

Jonathan Dutton,Executive Director o Finance and

Corporate Services (appointed 26 January 2010)

Secretaries:

Rebecca Finding (appointed 8 May 2009;

resigned 16 December 2009) Rachel Kennedy (appointed 16 December 2009)

Business review and future developments

The inancial perormance o the Company is

described in the Financial Review on page 6. This

review also includes details o expected uture

developments in the unding o the Company.

Future funding

For the period ended 31 March 2010 the

Company ully spent the grants made available

to it and made a small deicit due to the impact

o net losses on the Local Government Pension

Scheme (LGPS).

The Company has suicient inancial resources

available to it in order to deliver on its objectives

or the 2010/11 inancial year. It has made

a submission to the Government under the

Comprehensive Spending Review or capital

and revenue unding or the our inancial years

beginning in April 2011.

Once the inal outcome o the Spending Review is

known the Company will prioritise its activities to

operate within the budgets set. As a consequence,

the Directors believe that the Company is able

to manage its business risks successully despite

the current uncertain economic climate. Ater

making enquiries, the Directors have ormed

a judgement, at the time o approving the

inancial statements, that there is reasonable

expectation that the Company has adequate

resources to continue in operational existence

or the oreseeable uture. For this reason the

Directors have adopted the going concern basis

in preparing the inancial statements.


13/25


14/25

Corporate Governance Report2324

The Olympic Park Legacy Company Limited is a company limited by guarantee, established by the

Government and Mayor o London (the Founder Members) to create a lasting legacy rom the London

2012 Olympic and Paralympic Games.

The Company was incorporated on 8 May 2009 with three Founder Members: the Mayor o London, the

Secretary o State or Communities and Local Government and the Secretary o State or Culture, Olympics,

Media and Sport (prior to the 2010 general election the Minister or the Olympics was a Founder Member).

The ownership o the Company is split equally between the Mayor and Government, with the Government

Founder Members interest being urther sub-divided equally. The Company operates within the strategic

aims as stipulated in and set by the Members Agreement entered into by Founder Members in May 2009.

The Company is committed to meeting high standards o corporate governance and as such the Board

acknowledges its contribution to achieving management accountability, improving risk management and

building a world class company to deliver the legacy.

The Board and its committees

Following incorporation, a board o Directors was put in place to oversee the establishment o

the Company. This comprised the Chairman, Baroness Ford, and our other Non Executive Directors: David

Gregson, Jeremy Beeton, Dan Hawthorn and John Walker. This Board met our times. At the end o the

establishment period, the our other Non Executive Directors gave notice to the Company resigning their

oices as Directors.

The Board now comprises the Chair, 14 other Non Executive Directors and two Executive Directors (the

Chie Executive and Executive Director o F inance and Corporate Services). As set out in the Companys

Articles o Association, the Board includes three Non Executive Directors appointed by Founder Members

(two Non Executive Directors each o whom is a member, oicer or elected Mayor o a Legacy Borough and

one Non Executive Director who is a member or employee o the Homes and Communities Agency) and

11 independent Non Executive Directors appointed by the Founder Members on the recommendation o

the Chairman. Following his appointment as Permanent Secretary at the Department or Communities and

Local Government, Sir Robert Kerslake resigned rom the Board. Discussions are underway to identiy

another Homes and Communities Agency representative, who will be appointed to the Board.

In line with the Governments Code o Practice on Corporate Governance, the Directors were appointed

to provide a balance o skills and experience appropriate to directing the Companys activities as

demonstrated by their biographies on pages 15 to 18. The Board met our times during the period.

The Chairman has been appointed by the Founder Members as a Non Executive Director. The Chairman

is responsible or the eective conduct o the Boards business and the Companys general meetings,

ensuring the highest standards o propriety are adopted, and that the Company meets its objectives. She

represents the Company in the media and at key public events, and appears beore Parliamentary Select

Committees and the London Assembly as required as the representative o the Board and Company.

The Chie Executive is responsible or the eectiveness and eiciency with which the Companydischarges its unctions and expends the unding provided by the Founder Members and any additional

revenues the Company acquires through its business actions.

A statement o the Directors responsibilities in respect o the inancial statements is set out on page 21.

The Board is responsible or providing leadership, advice and support to the organisation, setting

strategic direction and overall policy, and monitoring standards, perormance and corporate governance,

as well as representing the Company with other stakeholders. The Board has three committees which

meet at least three times a year: the Audit Committee, the Communities Committee and the Investment

Committee. The committee chairs report regularly to the Board.

Audit Committee

The Audit Committee met twice during the period. Its members, unctions and responsibilities are shown below:


A Year In Review

Functions and Responsibilities Committee Members

Monitor and ensure published inancial statements comply with statutes

and accounting standards

Review eectiveness o internal inancial controls and risk management systems

Monitor the internal audit programme

Make a recommendation to the Board on the appointment o external auditors

and oversee the relationship with them

Review the Companys arrangements or sta to raise concerns about

inancial wrongdoing

Keith Edelman (Chair)

Ranjit Singh Baxi

Nick Bitel

Robert John

Elizabeth McMahon

The Executive Director o Finance and Corporate Services attends each meeting o the Audit

Committee. The Board is satisied that at least one member o the Audit Committee has recent and

relevant inancial experience. The Audit Committee comprises only independent Non Executive

Directors, consistent with the standards set out in the Combined Code. Meetings are attended by the

Chie Executive and other senior management as invited, internal and external auditors as required

and Founder Member observers. The internal auditors, Moore Stephens, were appointed in June 2010.

The detailed Report o the Audit Committee is set out on pages 26 to 27.


15/25

Corporate Governance Report2526

Communities Committee

The Communities Committee met once during the period. Its members, unctions and responsibilities

are shown below:

Internal control

The Directors acknowledge that they are responsible or the Companys system o internal control

and or reviewing its eectiveness. The system is designed to manage rather than eliminate the risk

o ailure to achieve the Companys strategic objectives and can only provide r easonable and not

absolute assurance against material misstatement or loss.

Internal Audit

The Company appointed Moore Stephens as internal auditors in March 2010. A high level review o the

Companys core business systems and controls was conducted at the request o the Chair o the Audit

Committee and the Executive Director o Finance and Corporate Services. No weaknesses in control

which leave the organisation exposed were highlighted in this report.

Identification and evaluation of business risks

The Board and its committees, along with the management team, work together to develop andimplement key policies and internal control strategies or the Company. To ensure continuing

alignment between risk management and programme management, risk management and assurance

is overseen by the Executive Director o Finance and Corporate Services and carried out by the

Programme Management Oice (PMO). The PMO is responsible or ensuring that risk management

and assurance sits alongside programme management operation and review. The Audit Committee

oversees the risk assurance unction to ensure that detailed risk assessment and assurance work is

ocused on the key activities o the Company and aligned to identiied business risk.

Report of the Audit Committee

The composition o the Audit Committee is described above. The members o the Audit Committee

have no personal inancial interest in matters to be decided, no potential conlicts o interest

(other than those identiied and appropriately managed) arising rom their ailiations with external

interested parties and no day-to-day involvement in running the activities o the Company.

The Audit Committee has written terms o reerence with the ull remit o the Committees roles and

unctions described, as summarised below.

The primary duties o the Audit Committee are to monitor and review the Companys inancial

reporting, internal controls and risk management, internal audit and external audit matters. It is

also responsible or reviewing the Companys arrangements or it s employees to raise concerns, in

conidence, about possible wrongdoing in inancial reporting or other matters and in that context, as

described in more detail below, has established and approved a whistle-blowing policy. With respect

to external audit matters, the Audit Committee is responsible or the development, implementationand monitoring o the Companys external audit arrangements. With respect to internal audit matters,

as set out above, the Audit Committee oversees the risk assurance unction to ensure that internal

audit work carried out by that unction is ocused on the key activities o the Company and aligned to

identiied business risk.

The Audit Committee meets at least three times a year at appropriate times in the reporting and

audit cycle and otherwise as required, and can be convened at the request o any o its members. The

Audit Committee was set up during the period under review and held two meetings. At each o these

meetings the Audit Committee received update reports rom the Executive Director o Finance and

Corporate Services.


A Year In Review

Corporate Governance Report


Advise on the Companys community and local stakeholder

engagement programme

Oversee the Companys work in developing opportunities or social enterprise

and engaging with local SMEs

Advise on and promote community input into the regeneration o the area and

on improving and maintaining the Companys visibility among local communities

Lord Mawson (Chair)

Ranjit Singh Baxi

Nick Bitel

Elizabeth McMahon

Tessa Sanderson

The Executive Director o Marketing and Communications attends each meeting o the Communities

Committee. Meetings are attended by the Chie Executive and other senior management as invited

and Founder Member observers.

Investment Committee

The Investment Committee met twice during the period. Its members, unctions and responsibilities

are shown below:


Oversee investment projects and programmes including but not limited to:

real estate, investment in site development above delegated powers, capital

it out o venues and acilities; remediation and operations

Review and approve proposals or capital and revenue decisions

Advise on strategic policies or the Companys investment programmes

Oversee the planning and implementation o the Companys capital and

revenue programmes

David Edmonds (Chair)

Aman Dalvi

David Gregson

Robert John

Philip Lewis

The Chie Executive and Executive Director o Finance and Corporate Services attend each meeting

o the Investment Committee. Meetings are attended by other senior management as invited and

Founder Member observers.

Ethical policies

The Company has adopted a code o conduct covering conlicts o interest to which all Directors and

sta are subject, a code o practice on gits and hospitality, an anti-raud policy, a whistle blowing

policy encouraging employees to elevate matters o concern, and a diversity and inclusion policy.

These policies are intended to ensure that all employees observe the spirit and letter o relevant laws

and exercise high standards o ethical conduct in all o the Companys activities.


16/25

Directors Remuneration Report2728

The Board considers it important that the Company is able to recruit, retain and motivate a high

quality, high perorming sta team. Remuneration o the executive team has been set at levels, agreed

with the Founder Members, designed to attract people o the necessary calibre to deliver on the

Companys challenging objectives. A salary ramework has been agreed across the Company, having

been benchmarked against other comparable organisations, together with a pay and reward strategy

that will be urther developed in the coming year. Contracts o employment o senior executive sta

anticipate the possible payment o perormance related pay, although no such payments were made

in the period under review. The sta that transerred to the Company on 30 September 2010 did so

on the terms and conditions o their employment with the London Development Agency.

The remuneration o the Chairman is set by the Founder Members. Under her contract she is paid a

ee o 95,000 per annum or a minimum commitment o two days per week to the role. She was

appointed on 13 May 2009 or a period o ive years.

The remuneration o the Chie Executive is set by the Board in consultation with the Founder

Members. Under his contract o employment he is paid a salary o 195,000 per annum. He took up

the position on 10 August 2009 and was appointed or a period o ive years.

The remuneration o the Executive Director o Finance and Corporate Services is set by the Board

in consultation with the Founder Members. Under his contract o employment he is paid a salary o

151,251 per annum. He took up his role on 1 January 2010.

The remuneration o the Non Executive Directors is determined by the Chairman in consultation

with the Founder Members, taking appropriate independent advice. Remuneration has been set at

14,000 per annum or each Non Executive Director, with 28,000 per annum paid to those who

chair committees o the Board.

No Directors are involved in any discussions or decisions about their own remuneration. Non Executive

Directors (other than the Chairman) are not eligible to join the Local Government Pension Scheme.


A Year In Review

Corporate Governance Report

During the course o the period the Audit Committee carried out the ollowing activities:

recommended that the Board approve the appointment o Moore Stephens as internal auditors;

commissioned the internal auditors to carry out an overview o the Companys inancial control

systems and processes;

recommended that the Board approve the operating and programme budgets or 2010/11;

approved the Companys Assurance Framework and it s whistle blowing policy;

reviewed the Companys corporate risk and issues register at each meeting. This included the

identiication o risks and issues that were not on the registers and scrutinising existing risks

and issues to ensure that they were accurate and up to date;

approved the process or accessing contingency unds;

provided guidance on land asset valuations and debt negotiations, and supplier expenditure; and

received and scrutinised management accounts.

On behal o the Board

Keith Edelman

Chairman o the Audit Committee

24 November 2010


17/25


A Year In Review

Directors Remuneration Report

2930 Olympic Park Legacy CompanyA Year In Review

Directors remuneration during the period ended 31 March 2010 was as ollows:

Directors Total emoluments for the period ended 31 March 2010

Executive Directors

Andrew Altman

Jonathan Dutton

Non Executive Directors

Baroness Ford

Ranjit Singh Baxi

Nick Bitel

Aman DalviKeith Edelman

David Edmonds

David Gregson

Robert John

Sir Robert Kerslake

Philip Lewis

Lord Mawson

Elizabeth McMahon

Jules Pipe

Tessa Sanderson

Sir Robin Wales

Total

000

133

27

89

5

5

59

9

5

5

-

5

9

5

-

5

-

316

Total emoluments include salaries, ees and beneits in kind but exclude contributions paid by the

Company to the deined beneit pension scheme.


Baroness Ford

Chairman

24 November 2010

We have audited the inancial statements o Olympic Park Legacy Company Limited or the period

ended 31 March 2010 which comprise the statement o comprehensive income, the statement o

changes in equity, the balance sheet, the statement o cash lows and the related notes. The inancial

reporting ramework that has been applied in their preparation is applicable law and International

Financial Reporting Standards (IFRSs) as adopted by the European Union.

This report is made solely to the companys members, as a body, in accordance with Chapter 3 o Part

16 o the Companies Act 2006. Our audit work has been undertaken so that we might state to the

companys members those matters we are required to state to them in an auditors report and or no

other purpose. To the ullest extent permitted by law, we do not accept or assume responsibility to

anyone other than the company and the companys members as a body, or our audit work, or this

report, or or the opinions we have ormed.

Respective responsibilities of directors and auditors

As explained more ully in the statement o directors responsibilities, the directors are responsible

or the preparation o the company inancial statements and or being satisied that they give a true

and air view. Our responsibility is to audit the parent company inancial statements in accordance

with applicable law and International Standards on Auditing (UK and Ireland). Those standards require

us to comply with the Auditing Practices Boards (APBs) Ethical Standards or Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the inancial statements

suicient to give reasonable assurance that the inancial statements are ree rom material

misstatement, whether caused by raud or error. This includes an assessment o: whether the

accounting policies are appropriate to the parent companys circumstances and have been

consistently applied and adequately disclosed; the reasonableness o signiicant accounting estimates

made by the directors; and the overall presentation o the inancial statements.

To THe members of THe olympic parklegacy company limiTed


18/25

Opinion on the financial statements

In our opinion the company inancial statements:

give a true and air view o the state o the companys aairs as at 31 March 2010 and o its proit

or the period then ended;

have been properly prepared in accordance with IFRSs as adopted by the European

Union; and

have been prepared in accordance with the requirements o the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion:

the inormation given in the directors report or the inancial period or which the inancial

statements are prepared is consistent with the company inancial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect o the ollowing matters where the Companies Act 2006 requires

us to report to you, i, in our opinion:

adequate accounting records have not been kept by the company; or

the parent inancial statements are not in agreement with the accounting records and returns; or

certain disclosures o directors remuneration speciied by law are not made; or

we have not received all the inormation and explanations we require or our audit.

Russell Field (Senior Statutory Auditor)

For and on behal o BDO LLP, Statutory Auditor

Epsom

United Kingdom

24 November 2010

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127)


A Year In Review

Independent Auditors Report


A Year In Review3132

Statement of Comprehensive Income

or the period ended 31 March 2010

Statement of Changes in Equity


Not es 000

Revenue rom operating activities

Operating costs

Operating profit

Finance costs

Finance income

Profit on ordinary activities

before taxation

Taxation

Proit or the period attributable

to the Members

Other comprehensive income

Actuarial losses on Scheme liabilities

Actuarial gains on Scheme assets

Total comprehensive income

for the period attributable to

the Members

3

6

4,239

(4,239)

-

(2)

2

-

-

-

(29)

7

(22)

All amounts relate to continuing activities.

Retained

earnings

Pension

reserve

Total

At 8 May 2009

Actuarial losses on

Scheme liabilities

Actuarial gains on

Scheme assets

Net income recognised

directly in equity

Net income recognised

in income statement

Total recognised

income and expense

At 31 March 2010

000

-

-

-

-

(6)

(6)

(6)

000

-

(29)

7

(22)

6

(16)

(16)

000

-

(29)

7

(22)

-

(22)

(22)


19/25


A Year In Review

FinancialStatements

FinancialStatements3334

Balance Sheet

as at 31 March 2010

Registered no. 06900359

Not es 000

Non current assets

Property, plant and equipment

Intangible assets

Current assets

Trade and other receivables

Cash and cash equivalents

Total assets

Current liabilities

Trade and other payables

Non current liabilities

Liability related to deined pension scheme

Total liabilities

Retained earnings

Pensions reserve

Total equity and liabilities

7

8

9

10

12

13

13

127

94

221

3,349

9354,284

4,505

4,511

16

4,527

(6)

(16)

4,505

Statement of Cash Flows


Notes 000

Operating activities

Operating proit

Depreciation

Amortisation

IAS 19 current service cost

Employers contribution payable to the LGPS

Increase in trade and other receivables

Increase in trade and other payables

Net cash flow from operating activities

Cash flows from investing activities

Purchase o property, plant and equipment

Purchase o intangible assets

Net cash used in investing activities

Cash flows from financing activities

Net cash flow from financing activities

Increase in cash and cash equivalents

Cash and cash equivalents at the beginning o the period

Cash and cash equivalents at end of the period

7

8

9

10

7

8

-

21

10

42

(48)

(3,349)

4,511

1,187

(148)

(104)

(252)

-

-

935

-

935

These inancial statements have been prepared in accordance with the provisions applicable to

companies subject to the small companies regime.


Andrew Altman

Chie Executive

24 November 2010

Jonathan Dutton

Executive Director o Finance and Corporate Services

24 November 2010


20/25


A Year In Review

Notes to the Financial Statements3536

1. Authorisation of financial statements and

statement of compliance with IFRSs

The inancial statements o the Olympic Park

Legacy Company Limited or the period ended

31 March 2010 were authorised or issue by the

Board o Directors on 24 November 2010 and the

Balance Sheet was signed on the Boards behal by

the Chie Executive and the Executive Director o

Finance and Corporate Services on 24 November

2010. The Olympic Park Legacy Company Limited

is a company limited by guarantee, incorporated

and domiciled in the United Kingdom under the

Companies Act 2006. The address o the head

oice is given on page 43.

2. Accounting Policiesa) Basis o preparation

The inancial statements have been prepared

on a historical cost basis and in accordance

with International Financial Reporting

Standards (IFRSs) as adopted by the European

Union as they apply to the inancial

statements o the Company or the period

ended 31 March 2010 and applied in

accordance with the Companies Act 2006.

Ater making enquiries the Directors have

ormed a judgement, at the time o

approving the inancial statements,

that there is reasonable expectation that the

Company has adequate resources to continue in

operational existence or the oreseeable uture.

For this reason the Directors have adopted the

going concern basis in preparing the inancial

statements or the period ended 31 March 2010.

b) Estimates and judgements

The preparation o inancial statements in

conormity with IFRSs requires management to

make judgements, estimates and assumptions

that aect the reported amounts o assets and

liabilities at the date o the inancial statements

and the reported amounts o revenues and

expenses during the reporting period.

The most signiicant items subject to suchassumptions include the useul economic lives

o assets, the measurement o accruals and the

measurement o the deined beneit pension

schemes assets and liabilities. The estimates

and associated assumptions are based on actors

which are believed to be reasonable under the

circumstances. Actual results may dier rom

these estimates.

c) Standards and interpretations not yet in issue

The IASB and International Financial Reporting

Interpretations Committee have issued the

ollowing standards and interpretations that

are mandatory or later accounting periods and

which have not been adopted early. These are:

Effective

date

IFRS 1

IFRIC 19

IAS 24

IFRIC 14

and IAS 19

IFRS 9

First-time adoption o IFRS

amendment

Extinguishing inancial

liabilities with equity

instruments

Revised related party

disclosures

The limit on a deined

beneit asset, minimumunding requirements

and their interaction

amendment

Financial instruments

Improvements to IFRSs

1 July

2010

1 July

2010

1 January

2011

1 January

2011

1 January

2013

Various

The Directors do not anticipate that the adoption

o these standards and interpretations will have

a material impact on the Companys inancial

statements in the period o initial application.

d) Revenue recognition

The Company receives a public sector unding

package comprising grants rom the London

Development Agency and the Department or

Communities and Local Government.

Government grants received or capital

expenditure are initially recognised as deerred

income, and are subsequently recognised as

revenue over the useul economic lie o the asset

purchased.

Grants or revenue expenditure are recognised

as revenue. Where retention o the grant is

dependent on the satisaction o certain criteria,

revenue is only recognised to the extent that

those criteria have been met.

Non monetary Government grants and

services received in kind are recognised as

revenue at their air value.

e) Intangible assets

Sotware licences acquired or a period o

more than one year are stated at cost less

accumulated amortisation.

Amortisation is provided on a straight line

basis over three years, or the expected useul

lie, i shorter. The amortisation expense

on intangible assets is recognised in the

Statement o Comprehensive Income underthe operating costs heading.

) Property, plant and equipment

Computer hardware, telecommunications

equipment and urniture, ixtures and

ittings are stated at cost less accumulated

depreciation. Cost comprises the aggregate

amount paid and the air value o any other

consideration given to acquire the asset and

includes costs directly attributable to making

that asset capable o operating as intended.

Depreciation is provided on a straight line

basis over the expected useul lie as ollows:

Computer hardware 33%

Telecommunications equipment 33%

Furniture, ixtures and ittings 20%

The carrying values o tangible assets are

reviewed or impairment i events or changes

in circumstances indicate that the carrying

value may not be recoverable and the assetsare written down immediately to their

recoverable amount. Useul lives and residual

values will be reviewed annually.

g) Cash and cash equivalents

Cash and short term deposits in the Balance

Sheet comprise cash at banks, in hand and

short term deposits with an original maturity

o three months or less.

For the purposes o the cash low statement,

cash and cash equivalents consist o

cash as deined above, net o outstanding

bank overdrats.


21/25


A Year In Review

Notes to the Financial Statements


h) Pensions

Employees o the Company have the opportunity

to participate in the Local Government Pension

Scheme which is a deined beneit scheme.

Deined beneit scheme surpluses and deicits are

measured at:

the air value o plan assets at the reporting

date; less

plan liabilities calculated using the projected unit

credit method discounted to its present value

using yields available on high quality corporate

bonds that have maturity dates approximating

to the terms o the liabilities; plusadjustments or unrecognised past service costs.

Any dierence between the expected return

on assets and that actually achieved, and any

changes in the liabilities over the period due to

changes in assumptions or experience within the

scheme are recognised in other comprehensive

income in the period in which they arise. Past

service costs are recognised directly in the

Statement o Comprehensive Income, unless

the changes to the pension plan are conditional

on the employees remaining in service or a

speciied period o time. In this case, the past

service costs are amortised on a straight line basis

over the vesting period. Where improvements

are made to beneits payable under a deined

beneit scheme, the eect on the plan liability is

recognised in the Statement o Comprehensive

Income on a straight-line basis over the average

period until the employees become entitled

to the improved beneits. Where the beneits

vest immediately, the eect o the change is

recognised immediately.

I the Company cannot (or can only partly)

beneit rom a scheme surplus in the orm o

reunds rom the plan or reductions in uture

contributions (e.g. because o minimum unding

requirements), any asset resulting rom the above

policy is restricted accordingly.

i) Taxation

The Company is liable or corporation tax.

Corporation tax is provided or on an accruals

basis. Where the Company is liable or other

taxes, these are also provided or on an

accruals basis.

j) Financial risk management

The Company has taken steps to ensure that

its risk exposure is minimised. It is and has

been throughout the period under review the

Companys policy that no trading in inancial

instruments shall be undertaken. The main risks

arising rom the Companys inancial instruments

are credit risk and liquidity risk.

k) Credit risk

The Company seeks to ensure that it trades only

with recognised credit worthy third parties.

The Company does not enter into derivatives to

manage its credit risk.

With respect to credit risk arising rom the other

inancial asset o cash and cash equivalents, the

Companys exposure arises rom deault o the

counter party with a maximum exposure equal to

the carrying amount o these instruments.

l) Liquidity risk

Funding or the Company is rom grants rom the

London Development Agency and Department or

Communities and Local Government.

The Company is working towards the

maintenance o cash balances that meet its

expected operational requirements or a period

o six months. Budgets are set and agreed in

advance by the Board to enable the Companys

cash requirements to be anticipated. This liquidity

risk is managed by monthly monitoring and

review o perormance against budget.

m) Financial assets

Financial assets are classiied as loans and

receivables. The classiication depends on the

nature and purpose o the inancial assets and is

determined at the time o initial recognition. The

Company does not hold any held-to-maturity

investments, air value through proit or loss or

available or sale inancial assets.

Loans and receivables

Trade receivables loans and other receivables that

have ixed or determinable payments that are not

quoted in an active market are classiied as loans

and receivables. These and other receivables are

initially recognised at air value and subsequently

carried at amortised cost, less provision or

impairment. A provision or impairment o trade

and other receivables will be established when

there is objective evidence that the Company will

not be able to collect all amounts due according

to the original terms o the receivables. The

provision will represent the dierence between

the assets carrying amount and the present value

o estimated uture cash lows. The amount o the

provision will be recognised in the Statement o

Comprehensive Income.

Cash and cash equivalents include cash in hand,

deposits at call with banks, bank overdrats and

unpresented cheques.

n) Financial liabilities and equity instruments

Debt and equity instruments are classiied as

either inancial liabilities or equity in accordance

with the substance o the contractual

arrangements. Financial liabilities are classiied as

other inancial liabilities. The Company does not

hold any inancial liabilities at air value through

proit and loss (FVTPL).

Financial liabilities at FVTPL

The Company does not have any liabilities held or

trading nor has it designated inancial liabilities as

being at air value through proit and loss.

Other financial liabilities

Trade and other payables are recognised on the

trade date o the related transactions. Trade

payables are not interest-bearing and are stated at

their nominal value.

Borrowings will be recognised initially at air value

net o transaction costs incurred. Borrowings will

then be subsequently stated at amortised cost,

with any dierence between the proceeds (net

o transaction costs) and the redemption value

recognised in the Statement o Comprehensive

Income over the period o the borrowings using

the eective interest method. The Company did

not have any borrowings or the period.

Equity instruments

An equity instrument is any contract that

evidences a residual interest in the assets o an

entity ater deducting all o its liabilities. There

have been no equity instruments issued by

the Company.

o) Segmental reporting

An operating segment is a distinguishable

component o a Group that engages in business

activities, earns revenue and incurs expenses,

whose operating results are regularly reviewed

by the Groups chie operating decision makers

and or which discrete inancial inormation

is available.

During the period the Company had only one

business activity being the setting up and

operation o an organisation to deliver a lasting

legacy rom the London 2012 Olympic and

Paralympic Games.

p) Capital risk management

The Company manages its capital to ensure

that it is able to continue as a going concern.

The Company maintains a suicient unding

base to meet its working capital requirements

and strategic investment needs.

3. Revenue

Revenue recognised in the Statement o

Comprehensive Income comprises Government

grants receivable and can be analysed as ollows:

000

Grant income receivable

Non monetary grants and services

received in kind

Total

2,570

1,669

4,239

4. Operating profit

The operating proit or the period has been

arrived at ater charging:

000

Depreciation o tangible assets

Amortisation o intangible assets

Auditors remuneration ees payable or the

audit o the Companys inancial statements

21

10

8


22/25

9. Trade and other receivables7. Property, plant and equipment


A Year In Review



5. Staff costs and Directors emoluments

000

Current

Prepayments

Accrued income

VAT recoverable

Other receivables

Total

284

2,720

311

34

3,349

10. Trade and other payables

000

Current

Trade payables

Taxation and social security

Accruals

Deerred income

Total

3

71

409

4,028

4,511

11. Financial instruments

Financial assets

Loans and

receivables

Current financial assets

Trade and other receivables (Note 9)

Net cash and cash equivalents

000

3,065

935

Financial liabilities

Financial liabilities

measured at

amortised cost

Current financial liabilities

Trade and other payables (Note 10)

000

483

The Directors consider that the carrying amounts

o inancial assets and inancial liabilities

recorded at amortised cost in the inancial

statements approximate to their air values.

The maximum exposure to credit risk as at the

reporting date is represented by the carrying

value o the inancial assets in the Balance Sheet.

Furniture,

fixtures

and fittings

Computer

hardware

and

telecoms/

office

equipment

Total

Cost:

At 8 May 2009

Additions

At 31 March 2010

Depreciation:

At 8 May 2009

Charged during

the period

At 31 March 2010

Net book value at

31 March 2010

000

-

21

21

-

2

2

19

000

-

127

127

-

19

19

108

000

-

148

148

-

21

21

127

8. Intangible assets

Computer

Software

Cost:

At 8 May 2009

Additions

At 31 March 2010

Amortisation:

At 8 May 2009

Charged during the period

At 31 March 2010

Net book value at 31 March 2010

000

-

104

104

-

10

10

94

12. Pensions

The Company oers retirement beneits as part

o the terms and conditions o employment to

its employees. The Company has a commitment

to make the payments that need to be disclosed

at the time that employees earn their uture

entitlement, although these will not actually be

payable until employees retire. Employees o the

Company are members o the LGPS.

Local Government Pension Scheme

The Company provides the opportunity or its

employees to participate in the LGPS. This is a

unded scheme. The LGPS is triennially valuedin accordance with the provisions o the Local

Government Pension Scheme Regulations

(1997). The unds actuaries, Hymans Robertson,

carried out a ull triennial valuation as at 31

March 2007. Employers and employees

contributions to the Scheme were determined

by the actuary ollowing this valuation. The

employers contribution rate or 2009/10 was

12.5%. Members pay contributions at rates

correlating to pensionable salary bands.

Employer contributions o 48,000 were

paid in 2009/10. The number o participating

employees was seven active members; there

are no deerred pensioners or actual pensioners

at 31 March 2010.

000

(a) Staff costs

Wages and salaries

Social security costs

Pension costs

Total

Average number o employees during

the period

(b) Directors emoluments

Directors emoluments

Aggregate contributions to deined

beneit pension scheme*

Total

757

121

44

922

No.

11

000

316

27

343

*During the period three Directors participated in the

deined beneit pension scheme

Further details on Directors remuneration can

be ound in the Directors Remuneration Report

on pages 28 to 29.

6. Taxation

There is no UK corporation tax payable by the

Company in respect o the period ended 31

March 2010.


23/25

Amounts charged to the Statement

of Comprehensive Income

Reconciliation of fair value of Scheme assets


A Year In Review



Principal assumptions used

by the actuary

Period ended

31 March

2010

Long-term expected rate o

return on assets in the Scheme:

Equity investments

Bonds

Target return portolio

CashAlternative assets

Expected return on assets

Mortality assumptions:

Longevity at 65 or current pensioners:

Men

Women

Longevity at 65 or uture pensioners:

Men

Women

Rate o inlation

Rate o increase in salaries

Rate o increase in pensions

Rate or discounting Scheme liabilities

%

7.5

5.5

4.5

3.06.5

6.8

19.60

22.50

20.70

23.60

3.9

5.4

3.9

5.5

The expected return on assets is based on the

long-term uture expected investment return

or each asset class as at the beginning o the

period. The return on gilts and other bonds are

assumed to be the gilt yield and corporate bondyield (with an adjustment to relect deault risk)

respectively at the relevant date. The return on

equities and property is then assumed to be a

margin above gilt yields.

Period ended

31 March

2010

Current service cost

Past service cost

Gains/(Losses) on curtailments

Interest cost

Expected return on Scheme assets

Actuarial losses on Scheme liabilities

Actuarial (gains)/losses on Scheme assets

Net charge to the Statement

of Comprehensive Income

000

42

-

-

42

2

(2)-

29

(7)

64

Reconciliation of present

value of Scheme liabilities

Period ended

31 March

2010

As at 8 May 2009

Expected return on assets

Contributions by Scheme participants

Contributions by the Company

including ununded beneits

Actuarial gains/(losses)

Fair value of Scheme assets

as at 31 March 2010

000

-

2

24

48

7

81

Period ended

31 March

2010

As at 8 May 2009

Current service cost

Contributions by Scheme participants

Interest cost

Actuarial (gains)/losses

As at 31 March 2010

000

-

42

24

2

29

97

Sensitivity analysis

The ollowing table sets out the impact o a

small change in the discount rates on the deined

beneit obligation and projected service cost

along with a +/- year age rating adjustment to

the mortality assumption.

Sensitivity analysis 000 000 000

Adjustment to discount rates

Present value o deined

beneit obligation

Projected service cost

Adjustment to mortality

age rating assumption

Present value o deined

beneit obligation

Projected service cost

+0.1%

94

187

+1 year

93

184

0.0%

97

194

none

97

194

-0.1%

99

201

-1 year

101

204

Long

Term

Return

As at

31 March

2010

Equities

Target return portolio

Alternative assets

CashCorporate bonds

Total

%

7.5

4.5

6.5

3.03.5

6.8

000

57

8

11

41

81

%

70

10

14

51

100

Period ended

31 March 2010

Dierences between the expected

and actual return on assets

Fair value o Scheme assets

Percentage of assets

Experienced gains/(losses) on liabilities

Present value o Scheme liabilities

Percentage of the total

present value of liabilities

Actuarial gains/(losses) recognised in

Statement o Changes in Equity

000

7

81

8.6%

4

97

4.1%

(22)

a year in review with our annual report and accounts 2009/10

Documents