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LOWER SEVERN (2005) INTERNAL DRAINAGE BOARD

F&GP Meeting Wednesday 13th December 2017

The Gables Hotel 10.30am

TERMS OF REFERENCE OF FINANCE AND GENERAL PURPOSES COMMITTEE approved at Minute 2056, 17th September 2014

Matters for determination by the Committee.

1. The appointment of Internal Auditors.

2. Consideration of any Report or Opinion from the Internal Auditors.

3. Consideration of a summary of internal audit work undertaken (whether of a financial orethical nature).

4. Commissioning work from either the Internal or External Auditor.

5. The approval/revision of the Risk Register.

6. The approval/revision of the Business Continuity Plan.

7. Reviewing payments made.

8. The recovery of rate arrears and sundry debts.

9. To monitor spending against the approved budget.

Matters for recommendation by the Committee to the Board

10. To consider the Annual Budget and Rate Setting prior to the February Board meeting ineach year.

11. To review the Annual Business Plan.

12. To review the Medium Term Financial Plan.

13. To monitor the Board's Treasury Management policies and practices.

14. To keep under review the Board's insurance policies.

15. To liaise with the National Audit Office regarding the appointment of the ExternalAuditor.

16. To consider any letter or report issued by the External Auditor.

17. To ensure the effective monitoring and review of policies and strategies.

18. To consider legislative changes (or proposed legislative changes) which may affect theBoard's statutory functions.

19. To identify any Member training needs in various aspects of the Board’s responsibilities.

Minutes of the Finance & General Purposes Committee of the Lower Severn (2005) Internal Drainage Board

Meeting held Wednesday 6th September 2017 at 10.30 am At The Gables Hotel Falfield

Present: Cllr P Awford Chairman Mr G Littleton

Mr R Thatcher Ald C Williams

Martin Dear Accounts Officer Kieran Warren Principal Officer PO David Wride Responsible Financial Officer RFO Sue Williams Minutes

2538. Apologies: Apologies were received from Mr Barnes, Mr Hore and Cllr M Riddle.

Martin Dear was introduced to the Committee. He had been appointed to prepare the Board’s financial statements after Mr Wride’s departure.

2539. Appointment of Chairman for the Meeting In the absence of Cllr Riddle.

Resolved that: • Cllr Awford chair the Meeting.

2540. Declarations of Interest There were no declarations.

2541. Minutes of the Previous Meeting

Resolved that: • The minutes of the Meeting held on 14th June 2017 be approved as

a correct record.

2542. Authority to Sign-Off Accounts

Resolved that: • David Wride be given authority to sign-off the financial statements for

the year ended 31st March 2017.

2543. Management Accounts The income and expenditure to 30th June 2017 showed a net deficit of £19,843 for the period. The Committee noted the management accounts for the three month period.

2544. Cash Funds The Committee noted the projected balances. Mr Wride suggested the Treasury Sub-Committee would need to consider how best to deposit the excess cash funds. It was noted the CCLA bank was still to be utilised.

2545. Medium Term Financial Plan The MTFP had been updated with the revised payroll figure for 2017/18 and projected this expenditure until 2021/22.

The Engineering Committee would be meeting in November and the maintenance plant and machinery budget could then be included for 2021/22. Mr Wride suggested the Board would have to consider an increase in rates to meet a rising deficit and to fund expenditure on the pump replacement programme for Eels Regulations compliance.

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2546. External Audit Report – Statutory Accounts

A draft of the External Auditor’s findings were circulated to accompany the draft Audited Statement of Accounts for the year ended 31st March 2017. Members noted that minor amendments to the notes were still to be finalised before the Board meeting to be held 20th September 2017.

2547. Internal Audit The PO reported that responses had been received from two firms of accountants to carry out the internal audit for the year 2017/18. He suggested, in the interest of objectivity, the Committee consider asking the appointed auditor select areas of work to review, rather than the inspection being steered by the Committee. The Committee were concerned that two site visits would not give the Board enough reassurance, in light of the significant change from full audit to a limited assurance audit. Resolved that:

• Bishop Fleming be appointed to carry out the 2017/18 internal audit. To comprise of four site visits for a fee of £2,500.

• The appointed auditor to select the areas to be reviewed.

2548. Bank Mandate Recommended that:

• Changes be made to the bank mandates at NatWest and Lloyds to reflect recent senior staff appointments and departures.

2549. Authority to Attend Court The Committee were asked to consider increasing the number of officers with authority to attend Court proceedings for debt recovery. Resolved that:

• The following officers be authorised to act in Court proceedings for the Board; Martin Dear - Accounts Officer James Druett - Land Drainage Engineer James Thomas - Civil Engineer Kieran Warren - Principal Officer Susan Williams - Rating Officer

2550. Payments to be Confirmed The Committee resolved that:

• Payments and transfers made between May and July 2017 as circulated be noted.

Meeting closed 11.45 am

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Minutes of Treasury Management Sub Committee Meeting of the Lower Severn (2005) Internal Drainage Board

Held Wednesday 1st November 2017 at 10.00 am At Drainage Board Offices Waterside Buildings

Present: Ald C Williams Chairman Mr G Littleton Mr J Nichols Cllr M Riddle Martin Dear Accounts Officer AO Sue Williams Minutes Mr Vere Boscawen Smith & Williamson

2563. Apologies No apologies were received.

2564. Declaration of Member’s Interest No interests were declared.

2565. Minutes of the Previous Meeting Resolved that:

• The minutes of the 15th March 2017 meeting be approved as a trueand accurate record.

2566. Review of Current Portfolio Mr Boscawen circulated the Sub-Committee with the valuation of the Board’s securities as at 30 October 2017. This report included MSCI WMA index as a benchmark. Since December 2016 the LSIDB portfolio had made a return of 10.74% this compared with benchmark return of 7.80%. The £500,000 investment of developers’ funds was valued at £584,749.

The portfolio was spread across UK and worldwide investments

2567. Market Update Mr Boscawen was satisfied the portfolio had generated income and capital growth.

The UK markets were difficult to predict post Brexit but that aside, economic growth across the global markets was performing well.

Mr Boscawen considered that the anticipated rise in interest rates would not have a major effect.

2568. Re-investment of Income In accordance with the Treasury Management Policy, approved 28th June 2017, the Sub Committee had discretion to reinvest the income earnt from the fund with advice from Smith & Williamson. Mr Boscawen had prepared a suggestion to split the income between existing funds in the portfolio; Invesco Perpetual Smaller Companies Trust, European Investment Trust and Henderson Far East Income Trust.

It was resolved that: • The Income generated from the fund be invested on a rolling basis

into the three trusts recommended by Smith & Williamson.

Mr Boscawen left the meeting

2569. Cash Deposit The Accounts Officer updated the Sub-Committee regarding depositing excess cash funds. He reported that the Cambridge and Counties Bank

Action 1 AO to analyse cash flows in

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was not credit rated because it did not borrow money. Only deposits up to £85,000 would be guaranteed by the government.

The Accounts Officer would be analysing cash flows to best use the deposit accounts currently available including the Cambridge and Counties Bank.

order to deposit excess cash.

2570. Treasury Management Policy The Accounts Officer had circulated an updated Treasury Management Policy following the June Meeting.

2571. Expenditure on Pump Replacements The Sub-Committee repeated a request for an indication of when expenditure might be incurred on pump replacements to be able to plan cash management of excess funds. The Accounts Officer reported he had started to gather the information from the Engineers. It was proposed to report to the Finance & General Purposes Committee either at the December or January meeting.

Action 2 AO to compile a pump replacement expenditure schedule.

Action 3 Report to F&GP on the timing and cost of the pump replacements.

2572. Next Treasury Sub-Committee Meeting Date The Sub-Committee agreed to the dates circulated by the Principal Officer; 14th March 2018 and 5th September 2018

Action 4 Contact Mr Boscawen with the proposed meeting dates.

The meeting closed at 11.25 am

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As at 13 December 2017Date: 13/12/2017Author: MDReview: Finance And General Purposes CommitteeF&GP Meeting: 13th December 2017

RiskRisk response and control

procedure

Probability without controls

Impact without controls

Probability (with current

controls)

Impact (with

current controls)

Monitoring and Assurance Actions Responsibility

Link to Business

Plan Objective

GovernanceG1 Board not having adequate

competency/skills to understand or control the business.

Treat14 elected members, landowners and owner occupiers have a vested interested in ensuring drainage is adequate.

Medium Medium Medium MediumMonitoring was introduced in 2008.

Board members receive appropriate ongoing training.

Board Y

G2 Difficulty in appointing new Board Members.

TolerateBoard is roll on basis. Not many board members leave.

Low Low Low Low

Records in place and are updated to enable elections to take place. Last elections took place in October 2015.

Open elections for new Board Members due in October 2018.

Board Y

G3 Susceptibility to concentration of power.

TreatManagement meetings held on a regular basis, Chairman and Vice Chairman involved. High High Medium Medium Monitoring was

introduced in 2008.

Segregation of duties and regular meetings between Board and key members of staff to review major issue and future actions.

Board Y

G4 Board not ensuring there is an overall strategy for the organisation as a whole.

TreatBusiness Plan and corporate strategy has been created. High High Medium Medium

Business plan in place and reviewed annually.

Regular review of forthcoming reporting deadlines at the Board meetings.

Board Y

Lower Severn (2005) Internal Drainage BoardRisk Register

5


procedure




controls)

Impact (with

current controls)


Link to Business

Plan Objective

TreatBoard meetings take place in February, June, September and November.

Board ensures that the meetings take place on time.

TransferAudit takes place on Accounts to ensure compliance with legislation.TransferPKF Littlejohn appointed as external auditors.TreatCitation appointed as Health and Safety and Human Resources advisors.

Procedures now in place. LDE monitors and maintains records.

Board have been made aware of the key legislative requirements to ensure they understand their responsibilities.

TransferIndemnity policy is in place so board do not have to pay compensation.

Included in Community Insurance cover with Zurich Municipal.

TreatFree training courses are also supplied which are being used relating to Recruitment, Employment, Law, Disciplinary, Performance Appraisals.

Board members have attended training on Interviewing Techniques.

Board Members to attend an update on Pension Legislation.

G7 Implementation of Eel Regulations.TreatAppointing consultants to report of steps to take to meet the statutory regulations.

High High High High

Engineers to report to Engineering Committee as necessary.

Frequent update to Engineering Committee and Full Board.

Board Y

G5 Failure to comply with key legislation and Corporation requirements.

High High

G6 Board not assuming control of key statutory requirements e.g. Health and Safety and Risk.

High High Low

Medium

Low

Regular review of forthcoming reporting deadlines at the board

meetings.

Board YPublic Sector Audit Appointments review and will make appointment from 1 April 2018.

Low

Board Y

6


procedure




controls)

Impact (with

current controls)


Link to Business

Plan Objective

FinanceV1. Inaccurate assumptions in place in

Business Plan.TransferThere is a Business Plan in place.

High High Medium Medium

Business plan reviewed by the Board at least annually. Medium Term Financial Plan reviewed by F&GP Committee.

Business Plan stating objectives of the Board is in place. Medium Term Financial Plan prepared.

Board and F&GP Committee

Y

V2 Inadequate internal control resulting in poor financial management.

TreatBishop Fleming have been appointed as Internal Auditors.

Medium High Low Medium Auditors to be appointed annually.

Appointed at the September F&GP meeting.

Board Y

V3 Security of deposit takers. TreatOnly retain funds at NatWest or Lloyds.

Medium Medium Low Medium

Treasury Management report to Board annually. Consider other secure banks for placing deposits.

Constant review when deposits mature.

Board and F&GP Committee

Y

Investments. TreatAppointed Smith and Williamson as investment managers.

High High Low Medium

Treasury Sub Committee to review investments and performance.

Constant review.

F &GP Committee

TransferAccounts are audited by external Auditors appointed by the Audit Commission.

Auditors present their report at Board Meetings.

AO responds and actions outstanding points.

TreatAccounts Officer to be responsible to the preparation of accounts.

Accounts Officer appointed August 2017. Management Accounts to be regularly presented to F&GP Committee.

Accounts/budgets prepared by Accounts Officer.

High Low Medium AO and F&GP Committee

V4

y

Inaccurate Accounting.

Medium

7


procedure




controls)

Impact (with

current controls)


Link to Business

Plan Objective

TransferInternal audit team will assess this.

Performed by Internal Auditors

Fraud and whistle blowing policy circulated to all staff.

All Staff Y

TreatChairman and Vice Chairman have access to internet banking.

Access log available.

Accounts Officer has been added as a bank signatory and internet banking. Further segregation of duties.

Board Y

TransferIncreased Fidelity Guarantee Insurance.

Cover reviewed annually.

Community insurance cover with Zurich Municipal.

Board and PO Y

TreatFraud policy and whistle blowing reporting code has been drawn up.

Policy in place approved by the Board. Fraud and whistle blowing policy circulated to all remove staff.

Fraud and whistle blowing policy circulated to new staff.

PO Y

TreatRegister of members interests held on file.

Register maintained and available for review.

Updated as members interests change.

PO Y

V6 Effect on inflation and exchange rate movements on specific areas.

TreatBudget overspent in year.

Low Low Low Low

Considered when budget prepared and rate set by Board in February.

Monitored regularly by F&GP Committee.

Board , F&GP Committee and

AOY

Medium Medium

V5 Fraud occurring through deliberate activity.

High High

8

V7 Impact of movements in interest rates on income.

TreatAll cash balances held in approved banks.

Low Low Low Low

Monitoring of budget, Medium Term Financial Plan and Severnside funds.

Actual rates and revised estimated presented to Board in February and November. Treasury management policy approved annually.

Board, F&GP Committee and

AOy

V8 Failure to achieve value for money. TreatThree quotes are obtained for any major purchase over £5,000 unless few suppliers see Financial Regs.

Medium Low Low Low AO reviews with LDE/CE.

Chairman and Vice Chairman informed of award and reasons.

Board and AO Y


procedure




controls)

Impact (with

current controls)


Link to Business

Plan Objective

Management and MaintenanceM1 Inaccurate assumptions affecting the

planned maintenance programme.TolerateEngineer carries out all scheduled maintenance work.

Medium Low Medium Low Procedure in place.

Boards Engineering Committee reviews programme, assumptions and planned schedule as realistic.

Engineering Committee and Land Drainage

Engineer

y

M2 Loss of Machinery through theft or damage.

TreatSpare Machines are available to meet work schedules.

Daily checks by users. Spares either held in workshop, or immediate delivery. Repairs carried out on site/workshop.

Staff training on type of equipment and all aspects of Health, Safety and risk review. All plant machinery insured through Fenton Insurance Services.

LDE

Loss of specific personnel leading to work being incomplete on schedule.

TreatSkilled workers are trained up so if one could not work then the other could, ensuring minimum down time.

Training schedules are maintained by the LDE.

Staff are trained to use equipment as appropriate.

LDE

Low Low Low Low

9

M3 Inadequate provision for safeguarding the Boards assets.

TreatMachines are locked up and fenced off.

Medium High Medium High

Location is reported daily. All plant machinery and motor vehicles covered by comprehensive insurance through Fentons (brokers) with Allianz Insurance.

Detailed log of machinery location is maintained. Training to prevent vandalism and theft has been implemented. All machines are tagged.

LDE Y

M4 Biodiversity Action Plan prepared. TreatAims and objectives are met.

High High Medium Medium Approved by Board.Workforce training review.

Civil Engineer /LDE

Y


procedure




controls)

Impact (with

current controls)


Link to Business

Plan Objective

Human ResourcesTreatPay review, pensions. Board agree all pay

reviews and changes.

Pay scales are reviewed to ensure they remain competitive.

ToleratePay in line with expected action of skill level of staff.

Pay scales are set annually. Changes to staff responsibilities are set against tables/spine points.

Non monetary benefits such as holiday pay is monitored to ensure that this also remains competitive to aid recruitment and retention.

TreatIncrease training.

Training schedules are maintained.

Staff receive ongoing relevant training.Low

PO Y

HR1 Inability to recruit new staff.

Medium Low Low

10

TransferPension fund review.

Annual review by actuaries of Glos LGPS. LGPS scheme closed to new staff in July 2015. Staff appointed since August 2015 are auto enrolled into Government workplace pension (NEST).

LGPS Employer contributions are revised on basis of actuaries triennial review. Review of Employer contribution to workplace pension to go to S&P Committee.

AO and PO Y

TreatLone working training, manual handling and use of ladders.

Training schedules are maintained. Skyguard Lone worker system.

Where possible restrict amount of lone working.

TreatStreet work signage training has been given.

Training schedules are maintained.

All workers have complete signage training.

TreatFirst aid training.

Health and Safety Training schedules are maintained.

All workers have completed first aid training.

TransferFidelity Guarantee Insurance cover.

Cover reviewed annually.

Cover under community Insurance through Zurich Municipal.

AO Y

HR3 Recruitment and retention affected by pay and conditions.

ToleratePay and conditions in line with expected action of skill level of staff.

Medium Low Low Low

Monitored against job description and spine points pay tables.

Pay scales and conditions are reviewed at least annually to ensure they remain competitive. Members regularly consider the Employer's contribution to Government workplace pension (NEST).

S&P Committee and PO

Y


procedure




controls)

Impact (with

current controls)


Link to Business

Plan Objective

HR2 Incidents to staff through lone working.

Medium High Low Low

Management Team & Foreman

Y

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HR4 Loss of key members of staff in a small team.

Tolerate Other drainage boards could be asked to advise on what needs doing if engineering levels were to all leave.

Medium Medium Low Low

Member of ADA and in dialogue with other Boards and use of consultants.

Ensure that admin duties are understood by more than one individual. Engineers overlap to ensure spread of knowledge.

AO/LDE/CE Y

Office Systems/IT TreatLaptop from home is available with server access.

A disaster recovery plan has been approved and clearly explains the steps that should be taken dependent on the type of disaster that occurs.

TreatBackups of server daily and once a week major backup.

Orchard Computer services. Daily/weekly backups.

I1 Failure to provide adequate insurance cover.

TransferInsurance is reviewed annually .

Medium High Low LowCover reviewed annually.

Cover under Community Insurance through Zurich Municipal.

AO Y

I2 Inadequate functionality of IT systems. Tolerate IT Systems are updated as and when they are needed. No specific high spec computers are needed, all packages used are basic and non bespoke.

Low Low Low Low Sage upgrades are incorporated as

available. Microsoft Office upgraded as appropriate. Data

base holding rating information updated as

necessary. Drainage Rating System (DRS)

has been implemented.

IT Systems are reviewed on a regular

basis and new/upgrades to

software packages only purchased as

necessary to improve information and efficiency of the

business.

PO/CE Y

Key: CE - Civil EngineerLDE - Land Drainage EngineerAO - Accounts OfficerPO - Principal Officer

F&GP Committee - Finance & General Purpose CommitteeS&P Committee - Staff & Pensions CommitteeNEST - National Employment Savings Trust

Business Continuity/Disaster Recovery plan tested satisfactorily in 2011 with Orchard computers.

Business Continuity Team

Y

O1 Disaster to office premises/IT.

Low High Low Medium

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COMMITTEE: Finance & General Purposes MEETING DATE: 13.12.2017

REF: KW/P1/2017 REPORT BY: Principal Officer

PENSIONS SEMINAR

Introduction

At the F & GP meeting held on 14 December 2016 the following decision was taken:

“A member expressed concern about the quantity and detail of information that had been circulated regarding pensions, and requested further professional guidance be offered to members on this important matter.

The Committee resolved to:

• The RFO arrange a presentation for members with an overview on pensions.”

[Minute No. 2437 refers.]

At the F & GP meeting held on 1 February 2017, Members clarified the areas of interest that the proposed seminar should cover as follows:

“Minute No. 2376, Action1 - Pensions Presentation

The RFO explained that he required a steer from the Committee as to what aspects they would like covered.

The Committee suggested two areas of interest; the impact of savings and defined contributions and effect the flat rate National Insurance pension would have on individuals, in particular women.”

[Minute No. 2455 refers.]

Alderman Colin Williams subsequently stated his interpretation of what he believed the main substance of the presentation ought to include:

“The Board has already set up a defined contribution scheme and we don’t therefore want advice on its introduction and/or operation but rather a dispassionate commentary on the effectiveness of such schemes”.

Progress to date

Initially I made contact with Steve Webb, former local MP and Pensions Minister in the coalition Government, spelling out the nature of Member interest in this issue and also providing some background information about the Board and its activities. He replied:

Dear Kieran,

Thank you for your message and for getting in touch.

As you may know, following the election I have taken up a full-time role as Director of Policy at Royal London, and work most of the week in central London. I’m afraid that it wouldn’t really be appropriate for me to undertake a presentation of this sort. It may be that a Bristol-based firm of consultants or actuaries might be able to help come along to make such a presentation however.

With best wishes,

Steve W.

I then approached Smith & Williamson. They “concluded that we do not believe we can add value to the understanding of your pension members about your pension offering & taking into account our likely costs for such an exercise, compared with the likely scheme benefits.”

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My next enquiry was to Webb Holton, our current pension advisors. Their Director Richard Waddams responded as follows:

The LSIDB auto enrolment scheme is with The People’s Pension and I have attached the annual report, which might answer certain questions raised by Members. The website is very useful indeed and contains a significant amount of information about the People’s Pension including the default fund past performance and the auto enrolment regulations.

I would be happy to do a presentation for Members but unfortunately I have a prior appointment on 8th November and will be unable to attend the meeting. I am available on 7th February.

Our costs for preparing and delivering the presentation, questions and answers with follow up emails and information as applicable afterwards, travel and research time is £1,000 plus VAT. This is non-standard work and would not form part of the routine services provided by Webb Holton to LSIDB under the ongoing agreement.

If you would like me to present in February, please could you kindly supply a list of questions that you would like to be answered or alternatively general themes that you would like me to cover.

Please let me know if you have any queries.

[An extract from the annual report referred to is attached at Appendix 1. One copy of the lengthy full report will be available for perusal at the meeting.]

Financial implications

There is no specific Member Training budget for this expenditure. The Accounts Officer has confirmed that the funds can be found if Members which to proceed.

The Committee’s view are requested.

Kieran Warren

Principal Officer

14

Minutes of the Engineering Committee Of the Lower Severn (2005) Internal Drainage Board.

Meeting held Wednesday 22nd November 2017 at 10.30 am At The Gables Hotel Falfield

Present: Mr Barnes Chairman

Mr W J Cornock Mr T Cullimore Miss Hewlett Mr Hyslop

Cllr J Jones Mr I Ractliffe Mr G Simms Mr R Thatcher

Guest: Mr J Chamberlayne Mr I Moodie ADA Technical Manager

Staff: Martin Dear Accounts Officer AO James Druett Land Drainage Engineer LDE Andrew Terrett Foreman James Thomas Civil Engineer CE K Warren Principal Officer PO Sue Williams Minutes

2589. Apologies Apologies were received from Mr R Godwin

2590. Appointment of Engineering Committee Chairman Resolved that:

• Mr Barnes was appointed Chairman for the ensuing year.

2591. Minutes of Previous Engineering Committee Meeting. Resolved that:

• The minutes of the Engineering Committee meeting held 23rd

November 2016 were approved as an accurate record of that meeting.

2592. Matters arising from the Minutes Ownership of land at Marshfield The transfer of land to the LSIDB would wait until modelling of the catchment, served by the pumping station, was carried out. There was a willingness from the landowner to resolve the issue when this information was known.

Slimbridge Water Level Management Plan The CE reported that it was likely that the completion of a new plan would be delayed to the next financial year; a consultant had recently been engaged.

Minute Update A member requested that the minutes should have an update due to the long period between Engineering Committee meetings. This would be redressed when Committee minutes were circulated to all Board members.

Action 1 Update actions with reports

2593. Mr Chamberlayne address to the Board re maintenance of the River Leadon Mr Chamberlayne a ratepayer and landowner adjacent to the River Leadon, gave a brief history of the maintenance of the River since the 1960’s.

This watercourse was heavily silted, particularly the lower reaches. The large outfall structure installed at Over had one outfall flap missing and the other was wedged closed with a build-up of silt. Three years ago

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Chamberlayne Farms took matters into their own hands and hired an excavator to have silt removed from the first 800 metres of the watercourse. They considered this had improved the evacuation of water.

Mr Chamberlayne represented the landowners that had sent a letter to the Board in August 2017, it requested the LSIDB to carry out further desilting work on the River Leadon.

Mr Chamberlayne hoped that the EA would look at the possibility of demainment of this watercourse so maintenance work could be carried out by the LSIDB.

2594. Ian Moodie ADA – Public Sector Co-operation Agreements and De-maining Watercourses Mr Moodie had been invited to address the Committee regarding the main river demainment.

Public Sector Co-operation Agreements There were 60 PSCA examples of IDBs conducting works on stretches of main river across the country. The EA saw this as a cost effective way of work being completed on watercourses that the EA would not otherwise have afforded. This could be a stepping stone to the future demainment and adoption of a watercourse for maintenance by an IDB.

Rationalisation of the Man River Network - Pilot Projects There was an appetite at the EA for greater level of demainment but they would want to ensure that it was a structured process with a local agreement and support in place. Mr Moodie was involved by chairing the technical working group for the five pilot projects that were currently underway across the country. This involved negotiations around the transfer of EA assets and the future management and cost associated.

The Process • A project officer would be appointed.• Check the IDB had necessary governance and environmental

credentials in place around their operations.• Prepare details for details for public drop in sessions• Consider feedback• Public Consultation• Formal order to demain signed off by the Minister

Funding maintenance of demained watercourses The EA recognised that transferring assets would have a cost. They calculated three year running cost plus decommissioning could be applied to the facilitating the transfer.

IDBs could consider identifying the element of the precept paid to the EA attributed to main rivers and discuss a precept reduction or how to better use the precept to improve a watercourse. Savings could be made by transferring the expenditure to the main river from the tributaries that the IDB maintained behind that watercourse.

Ultimately there would be extra costs to fund future maintenance of additional watercourses by IDBs, but ratepayers would benefit from the improved maintenance.

Mr Moodie recommended that the LSIDB prioritise the main rivers that the Board may wish to demain for adoption and have a developed costed plan. This would help negotiations with the EA.

The Chairman thanked Mr Moodie for his advice and attending the meeting at short notice.

Action 2 Ask EA to advise whether its precept would reduce if Main Rivers are de-mained

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2595. De-mainment of LSIDB Rivers The CE asked the Committee to decide whether to pursue the de-maining of Rivers within the Board’s area. If there was willingness they would draft a strategy.

To be able to make a recommendation to the Board the committee required more information.

The Engineers could prepare a report to prioritise the main rivers which applied the criteria; area of benefit, length and annual cost of maintenance.

The CE wanted the Committee to appreciate that offsetting the costs with the reduction in precept or transfer of maintenance from minor tributaries would have a negligible effect.

Resolved that: • A meeting of the Engineering Committee to be convened in the

Spring to review a report prepared by the Engineers which graded the main rivers within the Board’s area with a view to make a recommendation to the Board at its June meeting.

Action 3 Engineers to prioritise main rivers

2596. Machinery Replacement Programme Fitters 4 x 4 Pick Up The LDE had prepared the machinery replacement programme in line with previous replacement policy. He proposed that the fitter’s Isuzu pick up, due to be replaced, be kept as a spare and replace the Nissan Navara which had higher mileage. He had quotes and recommended that a Ford Ranger was purchased.

Resolved that: • The Nissan Navara Pick be sold via Ebay• Purchase a new Ford Ranger 4 x 4 Pick Up

Energreen 1500 Self-propelled Mower The LDE had received a quote from Spearhead for a replacement machine. He reported that due to exchange rates a new machine would cost £184k.

He had been offered £45k trade-in from Spearhead. Energreen, the manufacturers in Italy, would be contacted directly for a better quote.

The Committee considered that 4,000 hours were low and taking into consideration the recent hydraulic pump rebuild, costing £10k, the machine replacement should be moved back another year to 2019/20.

The AO commented that if the Energreen replacement was to be deferred it would be an advantageous to even out the annual expenditure of the machinery replacement programme.

It was suggested that plant could be replaced based on hours rather than a fixed seven year term.

Resolved that: • Replacement of the Energreen AU11 HCN in 2018/19 would be

deferred. • For 2019/20 budgets a plant replacement programme to be drafted

based on hours in addition to the fixed term replacement programme.

2597. Tracker Devices for Machinery Following a suggestion at the last Board meeting the LDE had investigated the use of trackers on the Board’s machinery, following the theft of the fuel bowser.

17

The cost for seven items of smaller machinery was £1,500 plus an annual subscription of £500. The cost for the large plant was £4,200 plus an annual subscription of £1,960. The saving on insurance premiums was small.

Resolved that: • The use of tracker devices was not economic at this time.

2598. Maintenance – Overtime The LDE reported that there had been an over spend on summer overtime. An additional 20 km of watercourse had been maintained this season despite one less operator for half the season, operator sickness and machinery breakdown. . He asked the Committee to consider and increase in this budget.

Resolved that: • The allowance for overtime to be increased to £20,000 for 2018/19.

The meeting closed at 12.25 pm

18


Balance Sheet as at 30 September 201730/09/17 30/09/16 31/03/17

Note £ £ £ £

FIXED ASSETSFixed Assets 1 848,956 959,365 898,781

848,956 959,365 898,781

LONG TERM ASSETSInvestments 579,172 400,000 563,485

579,172 400,000 563,485

CURRENT ASSETSStock +WiP 51,032 29,098 33,882Trade debtors 2,186 41,728 29,235Drainage rate debtors 4,553 -10,039 0Other debtors 4,346 0 0VAT claim 26,000 3,908 0Prepayments 1,834 9,000 7,150Severnside 30,500Cash at bank and in hand 428,471 611,097 492,131Short term deposits 500,000 0 200,000

1,018,422 715,292 762,398CURRENT LIABILITIESTrade Creditors -27,883 -19,282 -20,026Other Creditors -28,056 -28,660 -25,782Accrued expenses 0 0 -5,722Finance Leases due within one year 0 0 -677Prepaid rates 2 -53,393 -53,364 0Prepaid special levies 2 -13,165 0 0

-122,497 -101,306 -52,207

NET CURRENT ASSETS 895,925 613,986 710,191

TOTAL ASSETS LESS CURRENT LIABILITIES 2,324,053 1,973,351 2,172,457

LONG TERM LIABILITIESDevelopers' contributions -825,025 -671,298 -739,796Finance Leases -1,504 -1,973 -1,902Pension scheme deficit -1,097,000 -1,415,000 -1,097,000

-1,923,529 -2,088,271 -1,838,698

NET ASSETS 400,524 -114,920 333,759

FINANCED BY:

CAPITAL ACCOUNT 666,569 650,069 666,569

INCOME AND EXPENDITURE ACCOUNTBalance brought forward 477,926 411,434 411,439Net deficit for the 6 months -8,235 24,313 66,487

469,691 435,747 477,926

Revaluation reserve 146,042 149,042 146,042

Pump station reserve 3 215,222 65,222 140,222

Pension reserve -1,097,000 -1,415,000 -1,097,000

400,524 -114,920 333,759Notes

3. This Reserve includes a monthly transfer of £12,500 .

1. Fixed assets include purchases, sales and depreciation for 6 months to 30 September2 . In all these cases the balance sheet has been adjusted to reflect receipts and payments made in advance of the period earned or due.

19


Income and Expenditure for the 6 months to 30 September 2017

RevisedIncome Note Actual Budget Variance

£ £ £Levies charged to Authorities 1 566,171 566,171 0Agricultural Rates 1 53,393 53,393 0Rechargeable works 6,397 6,000 397Application fees 400 600 -200Plan checking fees 0 0 0Surplus on sale of assets 3,249 4,000 -751Miscellaneous Income 120 0 120Foreign Water Grant 78,840 78,840Severnside drawdowns 1 26,000 20,000 6,000Interest 463 750 -287Total 735,033 729,754 5,279

Expenditure

Payroll 3 320,725 323,900 3,175Office maintenance 12,781 14,463 1,682Maintenance 175,109 168,480 -6,629EA Levy 100,777 100,777 0Motor travel and subsistence 9,394 9,000 -394Communications 1,859 2,400 541Administration 4 19,176 16,000 -3,176Engineering Consultancy fees 20,850 22,500 1,650M49 culvert Consultants fees 6,000 0 -6,000Legal and Professional fees 3,764 3,250 -514Audit and Accountancy fees 5 2,113 3,560 1,447Depreciation 69,530 69,530 0Bank charges 1,190 1,200 10Total 743,268 735,060 -8,208

Deficit for 6 months -8,235 -5,306 -2,929

The results for 6 months show a deficit of £8,235 against a budget deficit of £5,306

The major reasons for the variances are:-

2) Maintenance costs are higher than budget due to:Actual Budget Variance Explanation for major variances

£ £ £Plant Maintenance 42,238 30,600 -11,638 New Dipper Arm, Tractor Bearing

Wheel, Energreen Hydraulic PumpMaintenance Compensation 1,747 500 -1,247 Profiling of Oldbury Highland RhineVehicles, Plant Vehicles 42,481 45,230 2,749Workshop Fixtures & Fittings 4,361 5,300 939Pump Station Electricity 1,157 8,250 7,093Health & Safety 8,125 3,600 -4,525 First Aid Training for Operatives

Clothing & Equipment ReplacementPump Station Reserve 75,000 75,000 0

175,109 168,480 -6,629

3) Administration costs include £2,022 in respect of 2017/18 rates which are basedon land holdings less that 125 AV and deemed uneconomical to collect.

1) In all these cases the income and expenditure has been included for the 6 months irrespective of whenthe monies are received or paid. The appropriate adjustments are made on the balance sheet.

20


Proposed Budget 2018/19Predicted Proposed

Notes Budget Out turn Variance Notes Budget Variance2017/18 2017/18 2018/198.20p 8.20p

£ £ £ £ £column 1 2 3(2-1) 4 5(4-2)

IncomeLevies charged to authorities 1,132,342 1,132,342 0 5 1,132,576 234Agricultural rate 106,698 106,698 0 5 106,713 15Foreign Water Grant 157,679 157,679 160,641 2,962Rechargeable works 20,000 20,000 0 6 20,000 0Application fees &wayleaves 1,200 1,200 0 1,200 0Plan checking fees 0 0 0 0 0Eng. Consultancy recharged 0 0 0 0 0Severnside capital drawdown 1 20,000 26,000 6,000 1 20,000 -6,000Severnside maintenance drawdown 1 20,000 20,000 0 1 20,000 0Bank interest 1,500 1,500 0 1,500 0Miscellaneous income 0 0 0 0 0Book profit (loss) on plant sales 2 4,000 3,249 -751 7 -158 -3,407Total 1,463,419 1,468,668 5,249 1,462,472 -6,196

ExpenditurePayroll 3 642,000 646,000 -4,000 8 668,192 -22,192Office maintenance 22,026 22,026 0 22,100 -74Plant maintenance 4 153,500 173,500 -20,000 9 160,300 13,200EA Levy 201,555 201,555 0 205,587 -4,032Motor, travel & subsistence 18,600 18,600 0 19,000 -400Communications 4,200 5,200 -1,000 4,200 1,000Administration 52,050 52,050 0 52,250 -200Eng. Consultancy general 45,000 45,000 0 10 45,000 0Eng. Consultancy recharged 0 0 0 1 0 0Legal & professional fees 5,000 5,000 0 11 3,000 2,000Audit & accountancy fees 13,680 13,680 0 11 8,000 5,680Depreciation 139,059 139,059 0 12 115,018 24,041Bank charges 2,600 2,600 0 2,600 0Total -1,299,270 -1,324,270 -25,000 -1,305,247 19,023

Transfer to pumping station reserve -150,000 -150,000 0 13 -150,000 0

Surplus (deficit) to (from) General reserve 14,149 -5,602 -19,751 7,225 12,827

21


Predicted out turn 2017/18

Notes

1 Severnside drawdowns based on activity in the year. Future drawdowns are based on £40,000 per annum for Capital and Maintenance works.

2 Actual profit on sale of Isuzu.

3 Payroll costs higher than budget due to regrades being confirmed in year. This has been partly offset by being an operative short at the beginning of the year.

4 Plant Maintenance is going to be overspent due to machinery repair costs and Health and Safety Training and clothing. Pump Station electricity costs are currently below budget.

Proposed Budget 2018/19Notes

An increase of 1p in the rate generates additional income of £151,000.

5

6 Rechargeable works have been set at 2017/18 budget levels.

7 Book value loss on sale of Nissan Navara.

8

National Insurance Contributions for 2018/19. (Not mentioned in the Chancellor's Budget Statement on 22 November 2017.)

9

10

11 Change to Limited Assurance Audit and a reduction in Internal Audit Fees.

12

13 The transfer to the Pump Station Reserve currently remains unchanged.

Depreciation Charge is low for a second year. Due to no major plant and machinery purchases in 2018/19.

The proposed budget indicates a deficit of £51,371 if the rate remains unchanged at 8.20p

Each budget line has been reviewed in detail with particular emphasis on cost savings. Income does not include any additional rechargeable works which may be carried out, nor does it include any consultancy fees recharged

This figure indicated a levy standstill at 8.20p. Agricultural rates based on 125 Annual Value and below are deemed uneconomic to collect. This is estimated to be £1,977 in 2018/19.

Payroll costs include staff changes, continuation of summer and additional working by the operatives. Assumes no change in

Plant Maintenance assumes a normal year for plant repairs.

General engineering consultancy has been set to 2017/18 budget levels.

22


Capital Expenditure Budget 2017/18 Budget Book

Purchases Purchase Sales Proceeds profit cost cost book value of sale on sale

£ £ £ £ £

Plant and MachineryItems not included in original budget

Cable Avoidance Tool 7000 700 0 0 0

Motor VehiclesNew Isuzu WU17 NVD 22,261Sale of Isuzu VO61 NVD 4,335 7,584 3,249

22,261 0 4,335 7,584 3,249

Total fixed asset changes 22,261 700 4,335 7,584 3,249

23


Capital Expenditure Budget 2018/19 Budget Book

Purchases Purchase Sales Proceeds profitcost cost book value of sale on sale

(loss)£ £ £ £ £

Plant and Machinery

0 0 0 0 0

Motor VehiclesFord Ranger - new 25,000Nissan Navara OV57 FPK sale 4,158 4,000 -158

25,000 0 4,158 4,000 -158

Total fixed asset changes 25,000 0 4,158 4,000 -158

24

APPORTIONMENT BETWEEN CHARGING AUTHORITIES Previous Increase due

Levy to land transfers,16 November 2017 2017/18 rates to levies

Charging Authorities AV Percentage 0.082 0.082

£ £ £Bristol City Council 7,589,404 50.2168 622,331.13 622,331.13 0.00South Gloucestershire Council 3,234,576 21.4022 265,235.23 265,031.46 203.77Stroud District Council 1,596,562 10.5640 130,918.08 130,789.34 128.74Gloucester City Council 729,073 4.8241 59,783.99 59,783.99 0.00Forest of Dean Council 448,391 2.9669 36,768.06 36,675.24 92.82Herefordshire Council 123,087 0.8144 10,093.13 10,093.13 0.00Tewkesbury Borough Council 73,933 0.4892 6,062.51 6,062.51 0.00 Malvern Hills District Council 16,880 0.1117 1,384.16 1,384.16 0.00

13,811,906 91.3891 1,132,576.29 1,132,150.96 425.33

Local Authorities 13,811,906 91.3891 1,132,576.29 1,132,150.96 425.33Agricultural rates 1,301,384 8.6109 106,713.49 106,698.81 14.68 (per DRS) 15,113,290 100.0000 1,239,289.78 1,238,849.77 440.01

The final percentages will be based on 31 December 2017 annual values


CHARGING AUTHORITIES LEVIES ANNUAL VALUES AS AT

25

A) Income and Expenditure

Year 0 Year 1 Year 2 Year 3 Year 42018/19 2018/19 2019/20 2020/21 2021/22 2022/23Budget Forecast Estimate Estimate Estimate Estimate

£000's £000's £000's £000's £000's £000's

Rate 8.20p 8.20p 8.20p 8.20p 8.20p 8.20p

Income (line10) 1,463 1,463 1,493 1,469 1,476 1,511

Expenditure (line 24) 1,455 1,455 1,517 1,497 1,561 1,651

Net surplus/-deficit(line 25) 8 8 -24 -28 -85 -140

Free reserves b/f (line26) 471 471 479 455 427 342

Free reserves c/f (line27) 479 479 455 427 342 202

Revenue reserve as % of expenditure 32.92 32.92 30.02 28.55 21.92 12.22

B) Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4

2018/19 2018/19 2019/20 2020/21 2021/22 2022/23Budget Forecast Estimate Estimate Estimate Estimate

£000's £000's £000's £000's £000's £000's

Balances b/f 536 536 638 504 594 400

Net cash movement 102 102 -134 90 -194 -305

Balances c/f 638 638 504 594 400 95


MTFP ( Medium Term Financial Plan)

26

Medium Term Financial Plan (MTFP)

Rate No increasesNot including pump replacement reserve 8.20p 8.20p 8.20p 8.20p 8.20p 8.20p

0.000% 0.00% 0.00% 0.00% 0.00%Income and YEAR YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 Total Expenditure basis 2018/19 2018/19 2019/20 2020/21 2021/22 2022/23 all years

Line Note Budget Forecast Estimate Estimate Estimate Estimate 2019/23£000's £000's £000's £000's £000's £000's £000's

Income Levies and charges to Authorities 1 1 1,132 1,132 1,132 1,132 1,132 1,132 4,528Agricultural rates (net of write offs) 2 2 107 107 107 107 107 107 428

sub total + 3 1,239 1,239 1,239 1,239 1,239 1,239 4,956Foreign Water Grant + Grant in aid 3 161 161 164 168 171 174 677Drawdown from Severnside funds 5 4 40 40 40 40 40 40 160Other Income 6 21 21 20 20 20 20 80Bank interest 7 5 2 2 2 2 2 2 8Surplus on sale of fixed assets 8 0 0 28 0 4 36 68

sub total + 9 224 224 254 230 237 272 993total+ 10 1,463 1,463 1,493 1,469 1,476 1,511 5,949

ExpenditurePayroll 11 6 668 668 675 681 688 695 2,739Office maintenance 12 22 22 22 22 22 22 88Maintenance plant and machinery 13 7 160 160 168 176 185 194 723EA Levy 14 3 206 206 210 214 219 223 866Motor travel and subsistence 15 19 19 19 20 20 20 79Communications 16 4 4 5 5 5 5 20Administration 17 52 52 52 52 52 52 208Engineering consultancy fees 18 45 45 45 45 45 45 180Legal and professional fees 19 3 3 3 3 3 3 12Audit and Accountancy fees 20 8 8 8 8 8 8 32Depreciation 21 9 115 115 157 118 161 231 667Bank charges 22 3 3 3 3 3 3 12Transfer to pumping station reserve 23 8 150 150 150 150 150 150 600

total -- 24 1,455 1,455 1,517 1,497 1,561 1,651 6,226

Net estimated +surplus -deficit 25 8 8 -24 -28 -85 -140 -277Free reserves 26 b/f 471 471 479 455 427 342 479Free reserves 27 c/f 479 479 455 427 342 202 202

Adjust for non cash itemsDepreciation 28 9 115 115 157 118 161 231 667Surplus on sale on fixed assets 29 0 0 -28 0 0 -36 -64Cash items not included 0Capital purchases net of sales receipts 30 10 -21 -21 -239 0 -270 -360 -869Adjustment for cash flow purposes 31 94 94 -110 118 -109 -165 -266Net creditors/debtors 32 0 0Net cash flow movement 33 102 102 -134 90 -194 -305 -543less pump station reserve 34 0 0Bank balances 35 b/f 536 536 638 504 594 400 638Bank balances 36 c/f 638 638 504 594 400 95 95

Note:1. Standstill estimates for rates and levies.2. Agricultural rates minor reduction due to write off of under 125 AV not collected.3. EA have informed the Board that a net annual payment of £42,172 will increase by 2%pa 4. Based on costs of Engineering consultants and part of Civil engineer time.5. Bank interest assumed at 0.5% on average annual balances6. Based on current headcount. 1.0% annual pay increases 2018 to 2023 Assumes no increase in National Insurance Contributions.7. Assumes a 5% increase in costs per annum.8. The transfer to the Pump Station Reserve currently remains unchanged.9. Depreciation is a non cash item and is added back for cash flow purposes.10. Capital purchases/sales include :- In 2018/19 Ford Ranger £25k, sell Nissan Navara £4k = £21k. In 2019/20 Wheeled Excavator £100k less proceeds NH WX09 FYF £10k = £90k

Energreen 1500, £184k less proceeds £35k for Energreen AU11 HCH =£149k. Total for the year £239k In 2020/21 No Purchase or sales are planned In 2021/22 Claas Mower £150k, less proceeds Claas 697 £10k = 140k

New Holland Excavator £140k, less proceeds Hyundai £10k = £130k. Total for the year £270k In 2022/23 Energreen SPV2 £200k, Trade in £40k = £160k

Energreen SPV3 £240k, Trade in £40k = £200k. Total for the year £360k.


27

Cash Flow Forecast for the Pump Replacement Programme Current Provision2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Total

£ £ £ £ £ £ £ £ £ £ £Income

Provision from Board Actual 150,000 150,000 300,000Estimate 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,200,000

Total 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 1,500,000

Expenditure

Pump Station No. of Pumps

Oldbury 3 513,300 513,3000

0 0 0 0 0 0 0 0 513,300 0 513,300

Marshfield 2 385,860 385,8600

0 0 0 0 0 0 385,860 0 0 0 385,860

Lapperditch 2 352,820 352,8200

0 0 0 0 352,820 0 0 0 0 0 352,820

Wicks Green 2 553,420 553,4200

0 0 0 0 0 0 0 0 0 553,420 553,420

Elmore Back 2 324,500 324,500Drainage Strategy - Water Environment - Apr 16 2,891 2,891

02,891 0 324,500 0 0 0 0 0 0 0 327,391

Saul 1 160,480 160,480Walkover Visit - Water Environment -Apr 16 142 142Drainage Strategy - Water Environment - Apr 16 6,745 6,745Consultation on conversion - Motion - Oct 17 2,090 2,090

06,887 162,570 0 0 0 0 0 0 0 0 169,457

Total 9,778 162,570 324,500 0 352,820 0 385,860 0 513,300 553,420 2,302,248

ReserveBalance b/f 140,222 127,652 -46,848 103,152 -99,668 50,332 -185,528 -35,528 -398,828In year 140,222 -12,570 -174,500 150,000 -202,820 150,000 -235,860 150,000 -363,300 -403,420Balance c/f 140,222 127,652 -46,848 103,152 -99,668 50,332 -185,528 -35,528 -398,828 -802,248 -802,248

28

Cash Flow Forecast for the Pump Replacement Programme Original Proposal2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Total

£ £ £ £ £ £ £ £ £ £ £Income


Total 150,000 150,000 150,000 150,000 300,000 300,000 300,000 300,000 300,000 300,000 2,400,000

Expenditure


Oldbury 3 513,300 513,3000

0 0 0 0 0 0 0 0 513,300 0 513,300

Marshfield 2 385,860 385,8600

0 0 0 0 0 0 385,860 0 0 0 385,860

Lapperditch 2 352,820 352,8200

0 0 0 0 352,820 0 0 0 0 0 352,820

Wicks Green 2 553,420 553,4200

0 0 0 0 0 0 0 0 0 553,420 553,420


02,891 0 324,500 0 0 0 0 0 0 0 327,391


06,887 162,570 0 0 0 0 0 0 0 0 169,457

Total 9,778 162,570 324,500 0 352,820 0 385,860 0 513,300 553,420 2,302,248

ReserveBalance b/f 140,222 127,652 -46,848 103,152 50,332 350,332 264,472 564,472 351,172In year 140,222 -12,570 -174,500 150,000 -52,820 300,000 -85,860 300,000 -213,300 -253,420Balance c/f 140,222 127,652 -46,848 103,152 50,332 350,332 264,472 564,472 351,172 97,752 97,752

29

Cash Flow Forecast for the Pump Replacement Programme - Option Annual Increment of £25,0002016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Total

£ £ £ £ £ £ £ £ £ £ £Income


Total 150,000 150,000 175,000 200,000 225,000 250,000 275,000 300,000 325,000 350,000 2,400,000

Expenditure


Oldbury 3 513,300 513,3000

0 0 0 0 0 0 0 0 513,300 0 513,300

Marshfield 2 385,860 385,8600

0 0 0 0 0 0 385,860 0 0 0 385,860

Lapperditch 2 352,820 352,8200

0 0 0 0 352,820 0 0 0 0 0 352,820

Wicks Green 2 553,420 553,4200

0 0 0 0 0 0 0 0 0 553,420 553,420


02,891 0 324,500 0 0 0 0 0 0 0 327,391


06,887 162,570 0 0 0 0 0 0 0 0 169,457

Total 9,778 162,570 324,500 0 352,820 0 385,860 0 513,300 553,420 2,302,248

ReserveBalance b/f 140,222 127,652 -21,848 178,152 50,332 300,332 189,472 489,472 301,172In year 140,222 -12,570 -149,500 200,000 -127,820 250,000 -110,860 300,000 -188,300 -203,420Balance c/f 140,222 127,652 -21,848 178,152 50,332 300,332 189,472 489,472 301,172 97,752 97,752

30

Cash Flow Forecast for the Pump Replacement Programme - Option Additional £50,000 in 2018/19,2020/21 and 2022/232016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Total

£ £ £ £ £ £ £ £ £ £ £Income


Total 150,000 150,000 200,000 200,000 250,000 250,000 300,000 300,000 300,000 300,000 2,400,000

Expenditure


Oldbury 3 513,300 513,3000

0 0 0 0 0 0 0 0 513,300 0 513,300

Marshfield 2 385,860 385,8600

0 0 0 0 0 0 385,860 0 0 0 385,860

Lapperditch 2 352,820 352,8200

0 0 0 0 352,820 0 0 0 0 0 352,820

Wicks Green 2 553,420 553,4200

0 0 0 0 0 0 0 0 0 553,420 553,420


02,891 0 324,500 0 0 0 0 0 0 0 327,391


06,887 162,570 0 0 0 0 0 0 0 0 169,457

Total 9,778 162,570 324,500 0 352,820 0 385,860 0 513,300 553,420 2,302,248

ReserveBalance b/f 140,222 127,652 3,152 203,152 100,332 350,332 264,472 564,472 351,172In year 140,222 -12,570 -124,500 200,000 -102,820 250,000 -85,860 300,000 -213,300 -253,420Balance c/f 140,222 127,652 3,152 203,152 100,332 350,332 264,472 564,472 351,172 97,752 97,752

31

Lower Severn (2005) Internal Drainage Board

Cash Cash flow No 1 A/C Natwest 2017 2018

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar AprNote £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's £ 000's

actual actual actual actual actual forecast forecast forecast forecast forecast forecastBalance b/f 722 349 44 42 51 251 241 214 237 235 348Other income 5 2 0 0 5 2 2 2 2 2 2Severnside 0 0 0 0 70 0 0 0 0 40 0Levies -311 0 0 0 18 539 0 0 0 0 0Rates 12 4 3 1 0 0 0 0 0 0 0 sub total 428 355 47 43 144 792 243 216 239 277 350Expenditure -39 -31 -36 -30 -32 -77 -77 -77 -77 -77 -77Plant/VAT (net) 5 -15 6 8 4 -2 -2 -2 -2 -2 0EA Levy 0 0 0 0 0 -22 0 0 0 -22S/S transfer 0 0 0 0 0 0 0 0 0 0 0Net transfers -45 -265 25 30 135 -450 50 100 75 150 79 sub total -79 -311 -5 8 107 -551 -29 21 -4 71 -20Balance c/f 349 44 42 51 251 241 214 237 235 348 330

Other balancesNatwest No 2 Account 24 36 26 28 31 31 31 31 31 31 31 Bonus Saver 1 174 274 198 104 4 454 404 304 229 79 0Lloyds Deposit 2 400 200 400 400 400 400 400 400 400 400 400Lloyds Current 100 100 100 100Cambridge&CountiesTotal 698 610 724 632 435 885 835 735 660 510 431

All LSIDB balances 1047 654 766 683 686 1126 1049 972 895 858 7611. Direct bonus Saver account at NatWest earns 0.15% interest2. Lloyds 3 month deposit earns 0.22% matured November 2017. Reinvested for 3 months earning 0.5% interest.3. The intention was to place £85,000 with Cambridge & Counties Bank in November 2017. The 31 day notice account is currently not available following the Bank of England Base Rate increase. This account was previously paying 1.1% interest.4. Negative Levies is due to repayment to Bristol CC. They paid their bill twice.5. The LSIDB balances include £140,000 of pumping station reserve as at 31 March 2017. Thereafter increases by £12,500 per month less any direct expenditure in year.

32

Lower Severn (2005) Internal Drainage Board

Investments As at 31 October 2017£

CapitalAmount through Smith & Williamson (net) 500,000

Market value 585,080

change in value 85,080

Income 5,395

Total return 90,475

Portfolio return 11.03%

Note: Market Index Movements 7.70%

33


Developers Funds October 2017

Severnside Funds £

Balance at 1 April 2017 707,073

Plot 8b Central Park 69,537 received 13 June 2017

Plot 8b Central Park 69,536 received 13 October 2017

Increase in value of investments 21,595

Interest received 6

Balance 31 October 2017 867,747

Transfer to Board 2017/18Maintenance and Capital -40,000 to be actioned 31 March 2018M49 Consultancy Fees -6,000 to be actioned 31 March 2018

Estimated balance 31/03/2018 821,747

M49 board contribution - balance -94,000.

Transfer to Board 2018/19 -40,000

Estimated balance 31/03/2019 687,747

Hempsted Pond 32,723

34

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