statement of accounts for the year ending house austin fields industrial estate kings lynn norfolk...

Kettlewell House Austin Fields Industrial Estate

Kings Lynn Norfolk

PE30 1PH

STATEMENT OF ACCOUNTS FOR THE YEAR ENDING

31 MARCH 2012

STATEMENT OF ACCOUNTS FOR THE YEAR ENDING 31 MARCH 2012

CONTENTS PAGE

Board Members as at 31 March 2012 2

Annual Report 3 – 4

Annual Governance Statement 5

Statement of Responsibilities for the Accounts 6

Statement of Accounting Policies 7 – 8

Income and Expenditure Account 9

Balance Sheet as at 31 March 2012 10

Income and Expenditure Account by Sub District 11

Statement of Movement on Reserves by Sub District 12

Maintenance Work Programme for 2011/12 13 – 16

Notes to the Accounts 17 – 23

Accounting Statement for Annual Return and Reconciliation to Accounts 24 – 26

Annual Return for the year ended 31 March 2012 (Audited Statements) Appendix

BOARD MEMBERSHIP AS AT 31 MARCH 2012

NAME MEETINGS ATTENDED ATTENDANCE % CONTACT DETAILS

ELECTED MEMBERS

Cooke P N R 2 2 100 [email protected]

Garrod N (wef Jan 12) 1 1 100 [email protected]

Greenwell Sir Edward* 2 2 100 [email protected]

Hall A R 2 2 100 [email protected]

Loyd C A 2 1 50 [email protected]

Mann C J 2 1 50 [email protected]

Mann R W 2 0 0 [email protected]

Paul M A 2 2 100 [email protected]

Pipe R J ** 2 2 100 [email protected]

Rowlands A J 2 1 50 [email protected] APPOINTED MEMBERS

Mid Suffolk DC

Barker R J 2 1 50 [email protected]

Marchant W (Mrs) 2 2 100 [email protected]

Wright S J 2 2 100 [email protected]

Suffolk Coastal DC

Block C (Mrs) 2 1 50 [email protected] Fellows M (Mrs) (wef June 11) 2 1 50 [email protected]

Marson J (Ms) (wef June 11) 2 2 100 [email protected]

Waveney DC

Allen S (Mrs) (wef Jan 12) 1 0 0 [email protected]

Patience K (wef Jan 12) 1 1 100 [email protected]

* Chairman

** Vice-Chairman

Average attendance: 72%

2

______________________________________________________________________________________ ANNUAL REPORT ______________________________________________________________________________________ East Suffolk IDB is an independent body created under Land Drainage Statutes responsible for flood risk, drainage and water level management works, other than on main rivers, in the East Suffolk IDB area. Board Members are either elected by and represent the occupiers of land in the area, or are appointed by Babergh, Waveney and Suffolk Coastal District Councils and Ipswich and Mid Suffolk Borough Councils. The Board secures income mainly from drainage levies on farmers and other occupiers and from special levies on local authorities. The Board pays a precept to the Environment Agency to fund works on main rivers and sea defences that protect the drainage district. The Board consists of 11 elected members and 12 appointed members. This document is the statement of accounts of East Suffolk IDB for the financial year ended 31 March 2012 which are set out on pages 2 to 26. The Accounts consist of: ANNUAL GOVERNANCE STATEMENT This statement acknowledges the Board’s responsibilities in terms of preparing the financial statements and ensuring that there is a sound system of internal control. STATEMENT OF RESPONSIBILITIES This statement identifies the officer who is responsible for the proper administration of the Board’s financial affairs. STATEMENT OF ACCOUNTING POLICIES This statement details the legislation and source of accounting principles on which the financial statements are prepared. INCOME AND EXPENDITURE ACCOUNT This statement shows the gross expenditure, income and net expenditure on the major activities for which the Board is responsible and compares that cost with the finance provided by the local ratepayer and others. BALANCE SHEET This statement is fundamental to the understanding of the Board’s financial position at the year end. It shows the balances and reserves at the Board’s disposal; and the fixed and net current assets employed in its operation, together with summarised information on the fixed assets held. The statement also includes assets and liabilities of the Board. INCOME AND EXPENDITURE ACCOUNT BY SUB DISTRICT This statement shows the gross expenditure, income and net expenditure on the major activities for which the Board is responsible and compares that cost with the finance provided by the local ratepayer and others from each Sub District.

3

______________________________________________________________________________________ ANNUAL REPORT (CONTINUED) ______________________________________________________________________________________ STATEMENT OF MOVEMENT ON RESERVES This statement shows the changes in reserves during the reporting period for each Sub District. MAINTENANCE WORK PROGRAMME FOR 2011/12 This statement shows the maintenance work programme during the reporting period for each Sub District. SUMMARY OF FINANCIAL PERFORMANCE The Board’s financial position has improved during the year: 1. Surplus: the Board made an operating surplus of £44,016, compared with an estimated surplus of

£29,435. This was largely down to lower than expected electricity costs due to a relatively dry year.

2. Debt: the Board has reduced its long term debt by £11,439 (4%) during the year.

3. Liquidity: cash surpluses have increased from £165,868 to £188,136 (13%).

4. Reserves: reserves have increased from £174,683 to £218,699 (25%) during the reporting period, due to the operating surplus.

4

______________________________________________________________________________________ ANNUAL GOVERNANCE STATEMENT ______________________________________________________________________________________ As members of the East Suffolk Internal Drainage Board we acknowledge our responsibility for ensuring that there is a sound system of internal control, including the preparation of the Statement of Accounts, and confirm, to the best of our knowledge and belief, with respect to the Board’s Statement of Accounts for the year ended 31 March 2012, that:

1. We have approved the Statement of Accounts and Annual Return which have been prepared in

accordance with the requirements of the Accounts and Audit Regulations and proper practices.

2. We have maintained an adequate system of internal control, including measures designed to prevent and detect fraud and corruption, and reviewed its effectiveness.

3. We have taken all reasonable steps to assure ourselves that there are no matters of actual or

potential non-compliance with laws, regulations and codes of practice which could have a significant financial effect on the ability of the Board to conduct its business or on its finances.

4. We have provided proper opportunity during the year for the exercise of electors’ rights in

accordance with the requirements of the Accounts and Audit Regulations.

5. We have carried out an assessment of the risks facing the Board and taken appropriate steps to manage those risks, including the introduction of internal controls and/or external insurance cover where required.

6. We have maintained throughout the year an adequate and effective system of internal audit of the

Board’s accounting records and control systems and carried out a review of its effectiveness.

7. We have taken appropriate action on all matters raised in previous reports from the internal and external audit.

8. We have considered whether any litigation, liabilities or commitments, events or transactions,

occurring either during or after the year-end, have a financial impact on the Board and where appropriate have included them in the Statement of Accounts. o*

‘Yes’ This Annual Governance Statement is approved by the Board and recorded as a Board minute on the 19 June 2012. Signed on behalf of East Suffolk Internal Drainage Board Signed by: Chairman Sir E Greenwell Date: 19 June 2012 Signed by: Chief Executive P J Camamile D Date: 19 June 2012

5

MM/YYYYIGNATURE REQUIRED DD/MM/YYYY NAME HERE ______________________________________________________________________________________ STATEMENT OF RESPOSIBILITIES FOR THE ACCOUNTS ______________________________________________________________________________________ THE BOARD IS REQUIRED:

1. To make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. In this Board that officer is the Chief Executive Officer.

2. To manage its affairs to secure economic efficient and effective use of its resources and safeguard

its assets.

THE CHIEF EXECUTIVE OFFICER’S RESPONSIBILITIES: The Chief Executive Officer is responsible for the preparation of the Board’s Statement of Accounts which presents a true and fair view of the financial position of the Board at the accounting date and its income and expenditure for the year ended 31 March 2012. The Chief Executive is also responsible for the preparation of the Board’s Annual Return, which is required to be completed and audited in accordance with the Accounts and Audit Regulations 2011. In preparing this Statement of Accounts and the Annual Return, the Chief Executive Officer has:

• selected suitable accounting policies and then applied them consistently;

• made judgements and estimates that were reasonable and prudent;

• compiled the Statement of Accounts in accordance with the Financial Reporting Standard for Smaller Entities 2008 issued by the Accounting Standards Board and reconciled these Accounts to the Accounting Statement on the Annual Return shown in this Report, which has been prepared in accordance with Parts 1 to 3 of the Guidance published by the Association of Drainage Authorities in 2008;

• applied the accounting concept of a “going concern” by assuming that the IDB will continue to

operate for the foreseeable future. The Chief Executive Officer has:

• kept proper accounting records which were up to date;

• taken reasonable steps for the prevention and detection of fraud and other irregularities. CERTIFICATE OF THE CHIEF EXECUTIVE OFFICER This Statement of Accounts provides a true and fair view of the financial position of the Board at 31 March 2012 and its income and expenditure for the year then ended. Name: P J Camamile Designation: Chief Executive Officer Date: 19 June 2012

6

From: 01 April 2011To: 31 March 2012 Year Ending: 31 March 2012

NOTE ACCOUNTING POLICIES

1 FINANCIAL REPORTING STANDARDS, REGULATION AND GUIDANCE

(i)

(ii)

(iii)

2 ACCOUNTING CONCEPTS

Going ConcernPrudenceAccruals

3 FIXED ASSETS

(i)

(ii)

(iii)

(iv)

(v)

Land: not depreciatedBuildings: 20 years

The useful lives of the various assets held on the Fixed Asset Register are as follows:

Depreciation has been provided for using the straight line method.

The Board has not elected to prepare a full Statement of Accounts required by larger public bodies, as providedfor in Regulation 12(b) of the Accounts and Audit Regulations 2011.

The Board has completed this Statement of Accounts in accordance with the Financial Reporting Standard forSmaller Entities 2008 (FRSSE) issued by the Accounting Standards Board and has prepared an Annual Return,which smaller bodies are required to do, in accordance with Regulation 12(a) of the Accounts and AuditRegulations 2011, based on these Accounts.

The Annual Return has been prepared in accordance with proper practices that are set out in Parts 1 to 3 of theGuidance published by the Association of Drainage Authorities in 2008. This Statement of Accounts thereforeincludes the Accounting Statement reported on the Annual Return, which has been reconciled to the Incomeand Expenditure Account and Balance Sheet stated herein.

These Accounts have been prepared in accordance with the following accounting concepts:

Fixed Assets are recognised as expenditure on the acquisition, creation or enhancement of fixed assets. Assets with estimated useful economic lives in excess of one year and a value of £5,000 or above are capitalised onan accruals basis in the Accounts.

All fixed Assets are valued on the following basis:

Land and buildings are included in the balance sheet at lower of net current replacement cost and net realisablevalue, net of accumulated depreciation. Net current replacement cost is assessed as:

Non-specialised operational properties - existing use value

Specialised operational properties - depreciated replacement cost

Vehicles, plant and equipment are included at cost less depreciation

Disposals are written off at cost less depreciation. Any surplus/deficit arising is charged/credited to ExceptionalItems in the Income and Expenditure Account.

7


NOTE ACCOUNTING POLICIES

4 STOCKS AND WORK IN PROGRESS

5 GOVERNMENT GRANTS AND SUBSIDIES

6 TAXATION

7 EXCEPTIONAL ITEMS, EXTRAORDINARY ITEMS AND PRIOR YEAR ADJUSTMENTS

(i)

(ii)

8 INCOME RECOGNITION

9 RESERVES

(i) General Reserves

(ii) Capital Reserves

Income is recognised at the time of invoicing. In the case of Drainage Rates this is on the 1st April annually.

The Board holds the following Reserves, the adequacy of which are reviewed by the Board annually. The Boardhas 5 sub districts and each one has its own General Reserve and Capital Reserve:

The Association of Drainage Authorities guidance recommends that the General Reserve held by the Board is20% to 25% of estimated net expenditure. The year end surplus/(deficit) for each Sub District is taken to theGeneral Reserve.

The purpose of this Reserve is to reduce the impact on drainage rates as and when pumping plant and gravitysluices are refurbished or improved, in accordance with the Pumping Station Refurbishment Programme andCapital Works Programme.

Stocks and work in progress are valued at the lower of cost or net realisable value.

Government grants and contributions have been credited to the Income and Expenditure Account on anaccruals basis.

Drainage Boards are exempt from Income, Corporation and Capital Gains Taxes. Value Added Tax is includedin the Income and Expenditure Account only to the extent that it is irrecoverable.

There are no material exceptional or extraordinary items to disclose in the Accounts.

Profits or losses on the disposal of fixed assets are shown separately on the face of the Income andExpenditure Account prior to the Operating Net Surplus/(Deficit).

8


ACTUAL ACTUAL BUDGETNOTE INCOME AND EXPENDITURE ACCOUNT 2010/11 2011/12 2011/12 VARIANCE

£ £ £ £

INCOME

1 Drainage Rates 101,559 103,556 103,556 02 Special Levies issued by the Board 113,995 121,549 121,549 03 Grants Applied 3,515 13,809 10,035 3,7744 Highland Water Contributions 70,753 69,250 74,169 -4,9195 Income from Rechargeable Works 4,778 100,231 0 100,2316 Other Income 1,785 5,343 1,920 3,423

Total Income £296,385 £413,738 £311,229 £102,509

EXPENDITURE

7 Capital Works 7,811 30,686 22,300 -8,3868 Environment Agency Precept 67,971 67,970 67,970 09 Maintenance Works 149,201 124,976 144,952 19,976

10 Administration Charges 34,890 45,859 46,572 71311 Cost of Rechargeable Works 4,778 100,231 0 -100,231

Total Expenditure £264,651 £369,722 £281,794 -£87,928

Profit/(Loss) on disposal of Fixed Assets 0 0 0 0

Net Surplus/(Deficit) for the Year £31,734 £44,016 £29,435 £14,581

9


NOTE BALANCE SHEET AS AT 31-3-2012 2010/11 MOVEMENT 2011/12£ £ £

12 Fixed AssetsLand and Buildings 255,334 -15,958 239,376

255,334 -15,958 239,376

Current Assets13 Cash at Bank and in Hand 15,868 22,268 38,13614 Short term Investments 150,000 0 150,00015 Debtors and Prepayments 45,246 9,216 54,462

211,114 31,484 242,598Current Liabilities

16 Creditors and Receipts in Advance 23,757 -17,051 6,70617 Loans Repayable within the next 12 months 10,906 259 11,165

34,663 -16,792 17,871

Net Current Assets 176,451 48,276 224,727

Less Long Term Liabilities17 Long Term Borrowing 257,102 -11,698 245,404

257,102 -11,698 245,404

Net Assets £174,683 £44,016 £218,699

18 Earmarked ReservesGeneral Reserves 57,687 8,554 66,241Capital Reserves 116,996 35,462 152,458

174,683 44,016 218,699

Reserves £174,683 £44,016 £218,699

P J CAMAMILECHIEF EXECUTIVE

10


INCOME AND EXPENDITURE ACCOUNT BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL£ £ £ £ £ £ £ £ £ £ £ £

INCOME

Drainage Rates 22,593 22,593 42,468 42,468 9,476 9,476 5,730 5,730 23,289 23,289 103,556 103,556Special Levies issued by the Board 19,938 19,938 7,087 7,087 0 0 92 92 94,432 94,432 121,549 121,549Grants Applied 3,150 4,164 4,725 6,698 900 1,262 1,260 1,685 0 0 10,035 13,809Highland Water Contributions 20,037 29,836 31,283 18,490 1,445 710 6,211 8,708 15,193 11,506 74,169 69,250Income from Rechargeable Works 0 41 0 100,054 0 14 0 10 0 111 0 100,231Other Income 341 870 443 1,179 118 300 87 222 931 2,772 1,920 5,343

Total Income £66,059 £77,442 £86,006 £175,976 £11,939 £11,762 £13,380 £16,447 £133,845 £132,110 £311,229 £413,738

EXPENDITURE

Capital Works 7,000 12,381 10,500 11,395 2,000 2,006 2,800 4,904 0 0 22,300 30,686Environment Agency Precept 5,174 5,174 4,385 4,385 922 922 202 202 57,287 57,287 67,970 67,970Maintenance Works 24,069 32,629 61,697 40,080 2,515 1,660 8,182 10,198 48,489 40,409 144,952 124,976Administration Charges 5,589 5,503 6,054 5,962 1,863 1,834 931 917 32,135 31,643 46,572 45,859Cost of Rechargeable Works 0 41 0 100,054 0 14 0 10 0 111 0 100,231

Total Expenditure £41,832 £55,728 £82,636 £161,876 £7,300 £6,436 £12,115 £16,231 £137,911 £129,450 £281,794 £369,722

Profit/(Loss) on disposal of Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 0

Net Surplus/(Deficit) for the Year £24,227 £21,714 £3,370 £14,100 £4,639 £5,326 £1,265 £216 -£4,066 £2,660 £29,435 £44,016

RIVER DEBEN (PUMPED) LOWER ALDE (PUMPED) AHB (PUMPED) BLYTH (PUMPED) TOTALGRAVITY

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STATEMENT OF MOVEMENT ON RESERVES BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL£ £ £ £ £ £ £ £ £ £ £ £

GENERAL RESERVES

Opening Balances as 1-4-2011 14,368 14,368 12,551 12,551 6,224 6,224 5,442 5,442 19,102 19,102 57,687 57,687Net Surplus/(Deficit) for the Year 24,227 21,714 3,370 14,100 4,639 5,326 1,265 216 -4,066 2,660 29,435 44,016Transfers (to)/from Capital Reserve -23,177 -17,064 -2,232 -10,419 -4,289 -4,880 -1,089 -3,099 0 0 -30,787 -35,462

Closing Balances as at 31-3-2012 £15,418 £19,018 £13,689 £16,232 £6,574 £6,670 £5,618 £2,559 £15,036 £21,762 £56,335 £66,241

CAPITAL RESERVES

Opening Balances as at 1-4-2011 21,473 21,473 25,287 25,287 4,033 4,033 1,567 1,567 64,637 64,636 116,997 116,996Transfers (to)/from General Reserve 23,177 17,064 2,232 10,419 4,289 4,880 1,089 3,099 0 0 30,787 35,462

Closing Balances as at 31-3-2012 £44,650 £38,537 £27,519 £35,706 £8,322 £8,913 £2,656 £4,666 £64,637 £64,636 £147,784 £152,458

TOTALRIVER DEBEN (PUMPED) LOWER ALDE (PUMPED) AHB (PUMPED) BLYTH (PUMPED) GRAVITY

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ACTUAL ACTUAL BUDGETOUR ID NAME 2010/11 2011/12 2011/12 VARIANCE

DRAINS MAINTENANCE

SD1: River Deben (Tidal Pumped) Sub DistrictDRN179P0101/4/5 King's Fleet 0 0 0 0DRN179P0102 Laurel Farm Delph 0 0 0 0DRN179P0103 Gulpher 555 0 375 375DRN179P0201 Falkenham Delph 0 1,500 0 -1,500DRN179P0204 Falkenham Marsh Drain 0 2,500 1,000 -1,500DRN179P0202 Kirton Drain 0 0 0 0DRN179P0205 King's Fleet Weir Drain 957 0 0 0DRN178P0301/3 Ramsholt Marsh 0 0 0 0DRN178P0101/4 Queen's Fleet 640 0 0 0DRN178P0201 Bawdsey Marsh 0 0 0 0

£2,152 £4,000 £1,375 -£2,625SD2: Lower Alde (Tidal Pumped) Sub DistrictDRN172P0101 Iken Marsh Drain 0 640 0 -640DRN171P0101 Ferry Farm Drain 0 0 0 0DRN171P0201 Sudbourne Delph 0 0 0 0DRN171P0202 Church Farm Drain 0 0 0 0DRN171P0201 Oxx Lead Drain 0 0 0 0DRN170P0101 Gedgrave Drain (North) 1,564 0 1,750 1,750DRN170P0201 Gedgrave Drain (South) 164 0 200 200DRN168P0101 Chillesford Drain 0 0 0 0DRN167P0101 Butley Marsh Drain 0 0 0 0DRN167P0102 Stonebridge Drain 0 0 0 0DRN167P0103 Capel Drain 0 0 0 0

£1,728 £640 £1,950 £1,310SD3: AHB (Tidal Pumped) Sub DistrictDRN176P0101 Colony Marsh Drain 0 0 0 0DRN177P0101 Un-Named 0 0 0 0DRN177P0201 Un-Named 0 0 0 0DRN177P0202 Un-Named 0 0 0 0DRN177P0301 Un-Named 0 0 0 0DRN177P0302 Un-Named 0 0 0 0

£0 £0 £0 £0SD4: Blyth (Tidal Pumped) Sub DistrictDRN160P0101 Un-Named 5,786 0 1,000 1,000DRN160P0102 Un-Named 0 0 2,000 2,000

£5,786 £0 £3,000 £3,000SD5: Gravity Sub DistrictDRN162G0101 Blyth, Tidal, Un-Named 0 0 0 0DRN164G0101 Thorpeness 100, Un-Named 0 0 0 0DRN169G0101 Butley Mill River, Lower Alde 200 0 0 0DRN165G0102 Boyton Marsh Drain, Lower Alde 0 0 0 0DRN165G0101 Boyton Marsh Delph, Lower Alde 0 0 0 0DRN182G0101/7 Shottisham River, Lower Deben 0 0 0 0

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DRN180G0101/3 Ramsholt Dock Drain, Lower Deben 0 0 0 0DRN163G0101 Eastbridge Drain, Minsmere 3,419 100 600 500DRN163G0301 Un-Named, Minsmere 0 0 2,500 2,500DRN163G0401 Un-Named, Minsmere 0 0 0 0DRN163G0203 Un-Named, Minsmere 0 0 0 0DRN163G0201 Un-Named, Minsmere 0 0 0 0DRN163G0202 Un-Named, Minsmere 0 0 0 0DRN161G0101 Holton Drain, Blyth 0 0 0 0DRN163G0501 Un-Named, Minsmere 0 0 0 0DRN175G0101 The Canal, FRAT 0 0 0 0DRN175G0201 Sternfield Drain, FRAT 0 0 0 0DRN175G0401 Un-Named, Upper Alde 0 0 0 0DRN175G0501 Bruisyard Hall Drain, Upper Alde 0 0 0 0DRN175G0301 Blackstock Drain, Upper Alde 0 0 0 0DRN183G0101/3 River Fynn, Lower Deben 0 0 0 0DRN184G0801/3 Framsden Drain, Upper Deben 0 0 0 0DRN184G0701 Horsefen Drain, Upper Deben 0 775 750 -25DRN184G0601 Moneweden Drain, Upper Deben 0 0 0 0DRN184G0501 Rendlesham Drain, Upper Deben 0 0 0 0DRN184G0101/5 Byng Brook, Upper Deben 0 0 0 0DRN184G0201 Eyke Marsh Drain, Upper Deben 2,590 0 0 0DRN184G0301/3 Loudham Drain, Upper Deben 910 0 0 0DRN184G0401 Ashe Abbey Drain, Upper Deben 0 2,140 2,000 -140DRN190G0101 Wetherden Stream, River Gipping 3,496 2,588 2,200 -388DRN191G0101/3 Wetherden Stream, River Gipping 0 0 2,250 2,250DRN186G1001 Gipping Stream, River Gipping 3,571 2,394 3,250 856DRN189G0101 Rattlesden River 528 0 550 550DRN189G0103/3 Golf Course Stream, River Gipping 0 2,890 1,725 -1,165COW Edgar's Farm Drain, River Gipping 0 0 275 275DRN186G0901/2 Creeting Drain, River Gipping 1,483 1,234 775 -459DRN186G0801/6 Badley Stream, River Gipping 3,643 6,121 3,550 -2,571DRN186G0701/4 Jack's Green Drain, River Gipping 1,426 1,373 1,250 -123COW Needham Market Drain, River Gipping 0 0 875 875DRN186G0601/5 Coddenham Stream, River Gipping 1,620 1,441 1,475 34DRN186G0301/4 Claydon Marsh Drain, River Gipping 880 1,175 700 -475DRN186G0201/3 Claydon Hill Drain, River Gipping 2,360 1,862 1,275 -587DRN186G0101 Bramford Marsh Drain, River Gipping 0 0 1,025 1,025DRN186G0401 Barham Marsh Drain, River Gipping 1,829 96 550 454DRN188G0101/5 River Jordan, River Gipping 428 1,317 675 -642DRN186G0501 Gallows Hill Drain, River Gipping 122 0 150 150

£28,505 £25,506 £28,400 £2,894

£38,171 £30,146 £34,725 £4,579

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PUMPING STATION MAINTENANCE

SD1: River Deben (Tidal Pumped) Sub DistrictPMP178P001 Bawdsey Pumping Station

Power 4,878 1,070 3,800 2,730Superintendence and other costs 821 6,361 1,200 -5,161

5,699 7,431 5,000 -2,431PMP179P001 King's Fleet Pumping Station

Power 4,501 2,438 5,700 3,262Repairs and Maintenance 166 5,551 1,500 -4,051

4,667 7,989 7,200 -789PMP179P002 Falkenham Pumping Station

Power 1,960 0 5,000 5,000Superintendence and other costs 5,666 10,617 2,000 -8,617

7,626 10,617 7,000 -3,617

£17,992 £26,037 £19,200 -£6,837

SD2: Lower Alde (Tidal Pumped) Sub DistrictPMP167P001 Butley Pumping Station

Power 4,365 2,466 5,550 3,084Superintendence and other costs 1,765 496 2,000 1,504Depreciation (loan repayments) 5,319 3,679 -1,640

6,130 8,281 11,229 2,948PMP168P001 Chillesford Pumping Station

Power 1,938 616 2,000 1,384Superintendence and other costs 1,004 631 1,600 969Depreciation (loan repayments) 0 5,319 3,679 -1,640

2,942 6,566 7,279 713PMP170P001 Gedgrave Pumping Station

Power 3,081 -571 2,000 2,571Outfall refurbishment work 9,950 0 0 0Superintendence and other costs 1,414 860 2,000 1,140Depreciation (loan repayments) 0 5,320 3,679 -1,641

14,445 5,609 7,679 2,070PMP172P001 Iken Pumping Station

Power 4,670 1,595 4,600 3,005Superintendence and other costs 1,216 787 2,000 1,213

5,886 2,382 6,600 4,218PMP171P001 Sudbourne Pumping Station

Power 9,595 429 8,500 8,071Superintendence and other costs 331 574 2,000 1,426

9,926 1,003 10,500 9,497

£39,329 £23,841 £43,287 £19,446

15













SD3: AHB (Tidal Pumped) Sub DistrictPMP176P001 Colony Marsh Pumping Station

Power -1,694 234 1,050 816Superintendence and other costs 0 562 300 -262

-£1,694 £796 £1,350 £554

SD4: Blyth (Tidal Pumped) Sub DistrictPMP160P001 Reydon Pumping Station

Power 4,211 3,083 3,600 517Superintendence and other costs 1,190 6,683 1,000 -5,683

£5,401 £9,766 £4,600 -£5,166

PUMPING STATION MAINTENANCE £61,028 £60,440 £68,437 £7,997

DIRECT WORKS £99,199 £90,586 £103,162 £12,576

TECHNICAL SUPPORT (INCLUDING BAP IMPLEMENTATION) £36,678 £21,598 £29,115 £7,517

FINANCE COSTS (LOAN INTEREST: LOWER ALDE) £13,324 £12,792 £12,675 -£117

MAINTENANCE WORKS £149,201 £124,976 £144,952 £19,976

16






NOTE NOTES TO THE ACCOUNTS

1 DRAINAGE RATES 2010/11 2011/12 2011/12 2011/12Actual (£) Actual (£) Budget (£) Variance (£)

River Deben (Tidal Pumped) Sub District 22,593 22,593 22,593 0Lower Alde (Tidal Pumped) Sub District 42,541 42,468 42,468 0AHB (Tidal Pumped) Sub District 9,476 9,476 9,476 0River Blyth (Tidal Pumped) Sub District 5,730 5,730 5,730 0Gravity Sub District 21,219 23,289 23,289 0

101,559 103,556 103,556 0

2 SPECIAL LEVIES ON COUNCILS 2010/11 2011/12 2011/12 2011/12Actual (£) Actual (£) Budget (£) Variance (£)

River Deben (Tidal Pumped) Sub District:Suffolk Coastal District Council 19,938 19,938 19,938 0

Lower Alde (Tidal Pumped) Sub District:Suffolk Coastal District Council 7,087 7,087 7,087 0

River Blyth (Tidal Pumped) Sub District:Waveney District Council 92 92 92 0

Gravity Sub District:Babergh District Council 1,316 1,430 1,430 0Ipswich Borough Council 27,867 30,290 30,290 0Mid Suffolk Borough Council 29,545 32,114 32,114 0Waveney District Council 2,266 2,463 2,463 0Suffolk Coastal District Council 25,884 28,135 28,135 0

86,878 94,432 94,432 0

113,995 121,549 121,549 0

3 GRANTS APPLIED

Grants Applied for this year and last year are as follows:

2010/11 2011/12 2011/12 2011/12Capital Scheme Actual (£) Actual (£) Budget (£) Variance (£)River Deben (Tidal Pumped) Sub District:Bawdsey Pumping Station (Health & Safety Improvements) 351 1,007 1,050 -43King's Fleet Pumping Station (Health & Safety Improvements) 352 1,041 1,050 -9Falkenham Pumping Station (Health & Safety Improvements) 352 2,116 1,050 1,066

1,055 4,164 3,150 1,014Lower Alde (Tidal Pumped) Sub District:Butley Pumping Station (Health & Safety Improvements) 351 822 945 -123Chillesford Pumping Station (Health & Safety Improvements) 351 503 945 -442Gedgrave Pumping Station (Health & Safety Improvements) 352 1,251 945 306Iken Pumping Station (Health & Safety Improvements) 352 1,792 945 847Sudbourne Pumping Station (Health & Safety Improvements) 352 2,330 945 1,385

1,758 6,698 4,725 1,973AHB (Tidal Pumped) Sub District:Colony Marsh Pumping Station (Health & Safety Improvements) 351 1,262 900 362

River Blyth (Tidal Pumped) Sub District:Reydon Marsh Pumping Station (Health & Safety Improvements) 351 503 1,260 -757Reydon Marsh Pumping Station Improvement Study 0 1,182 0 1,182

351 1,685 1,260 425

3,515 13,809 10,035 3,774

Special Levies are paid by contributing Councils in two equal halves on 1 May and 1 November every year.

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4 HIGHLAND WATER CONTRIBUTIONS

(i)

(ii)

2010/11 2011/12 2011/12 2011/12Actual (£) Actual (£) Budget (£) Variance (£)

River Deben (Tidal Pumped) Sub District 24,252 29,836 20,037 9,799Lower Alde (Tidal Pumped) Sub District 28,212 18,490 31,283 -12,793AHB (Tidal Pumped) Sub District -1,670 710 1,445 -735River Blyth (Tidal Pumped) Sub District 7,609 8,708 6,211 2,497Gravity Sub District 12,350 11,506 15,193 -3,687

70,753 69,250 74,169 -4,919

5 INCOME FROM RECHARGEABLE WORKS 2010/11 2011/12 2011/12 2011/12Actual (£) Actual (£) Budget (£) Variance (£)

River Deben (Tidal Pumped) Sub District:Bank Charges 0 41 0 41

Lower Alde (Tidal Pumped) Sub District:Bank Charges 0 53 0 53Reinstatement of Sea Wall at Butley Creek 0 45,406 0 45,406Crest Trial Works at Orford 0 54,595 0 54,595

0 100,054 0 100,054AHB (Tidal Pumped) Sub District:Bank Charges 0 14 0 14Twin Banks Watercourse (EA) 4,778 0 0 0

4,778 14 0 14

River Blyth (Tidal Pumped) Sub District:Bank Charges 0 10 0 10

Gravity Sub District:Bank Charges 0 111 0 111

4,778 100,231 0 100,231

6 OTHER INCOME 2010/11 2011/12 2011/12 2011/12Actual (£) Actual (£) Budget (£) Variance (£)

River Deben (Tidal Pumped) Sub District:Investment Interest 0 496 341 155Other Income (WMA) 0 374 0 374Summons Costs 0 0 0 0

0 870 341 529Lower Alde (Tidal Pumped) Sub District:Investment Interest 0 644 443 201Other Income (WMA) 0 485 0 485Summons Costs 0 50 0 50MOD Special Contribution 920 0 0 0

920 1,179 443 736

This income comes from the Environment Agency in May and December each year. Highland Water income has been derived froma relatively complex calculation designed to recompense the Board for managing the water that enters its Drainage District from theupper reaches of its hydraulic catchment.

Highland water contributions are credited to each of the 5 Sub Districts according to an agreed fraction of the value of themaintenance work that has been carried out in each Sub District. These fractions are determined by the Environment Agency:

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AHB (Tidal Pumped) Sub District:Investment Interest 0 171 118 53Other Income (WMA) 0 129 0 129Summons Costs 0 0 0 0

0 300 118 182River Blyth (Tidal Pumped) Sub District:Investment Interest 0 127 87 40Other Income (WMA) 0 95 0 95Summons Costs 0 0 0 0

0 222 87 135Gravity Sub District:Investment Interest 200 1,352 931 421Other Income (WMA) 0 1,020 0 1,020Summons Costs 665 400 0 400

865 2,772 931 1,8411,785 5,343 1,920 3,423

7 CAPITAL WORKS

2010/11 2011/12 2011/12 2011/12Grant Aided Works Actual (£) Actual (£) Budget (£) Variance (£)River Deben (Tidal Pumped) Sub District:Bawdsey Pumping Station (Health & Safety Improvements) 781 4,489 2,333 -2,156King's Fleet Pumping Station (Health & Safety Improvements) 781 2,073 2,333 260Falkenham Pumping Station (Health & Safety Improvements) 781 5,819 2,334 -3,485

2,343 12,381 7,000 -5,381Lower Alde (Tidal Pumped) Sub District:Butley Pumping Station (Health & Safety Improvements) 781 521 2,100 1,579Chillesford Pumping Station (Health & Safety Improvements) 781 733 2,100 1,367Gedgrave Pumping Station (Health & Safety Improvements) 781 1,503 2,100 597Iken Pumping Station (Health & Safety Improvements) 781 1,534 2,100 566Sudbourne Pumping Station (Health & Safety Improvements) 782 7,104 2,100 -5,004

3,906 11,395 10,500 -895AHB (Tidal Pumped) Sub District:Colony Marsh Pumping Station (Health & Safety Improvements) 781 2,006 2,000 -6

River Blyth (Tidal Pumped) Sub District:Reydon Marsh Pumping Station (Health & Safety Improvements) 781 2,278 2,800 522Reydon Marsh Pumping Station (Improvement Study) 0 2,626 0 -2,626

781 4,904 2,800 -2,104

7,811 30,686 22,300 -8,386

8 ENVIRONMENT AGENCY PRECEPT

The Precept is paid to the Environment Agency for maintaining the main rivers and sea defences that help protect the Board's area.Half of the Precept is payable to the Environment Agency on 31 May and the other half is paid to them on 30 November each year.The amount payable is apportioned to each of the Board's sub districts according to assessable value:

The following capital work was undertaken during this year and last year. The Board is happy to receive any questions the readermay have about this work and contact details can be accessed from our website:

Investment Interest is apportioned to each Sub District according to the closing balances of the Sub District, when expressed as aproportion of the Board's total closing balances as at the previous year end: River Deben (17.77%), Lower Alde (23.08%), AHB(6.14%), River Blyth (4.54%) and Gravity (48.47%).

19




River Deben (Tidal Pumped) Sub District 6,142 5,174 5,174 0Lower Alde (Tidal Pumped) Sub District 7,097 4,385 4,385 0AHB (Tidal Pumped) Sub District 3,668 922 922 0Blyth (Tidal Pumped) Sub District 360 202 202 0Gravity Catchments Sub District 50,704 57,287 57,287 0

67,971 67,970 67,970 0

9 MAINTENANCE WORKS

(i)


River Deben (Tidal Pumped) Sub District 24,545 32,629 24,069 -8,560Lower Alde (Tidal Pumped) Sub District 59,149 40,080 61,697 21,617AHB (Tidal Pumped) Sub District -227 1,660 2,515 855Blyth (Tidal Pumped) Sub District 11,921 10,198 8,182 -2,016Gravity Catchments Sub District 53,813 40,409 48,489 8,080

149,201 124,976 144,952 19,976

10 ADMINISTRATION CHARGES

(i)


(ii) Shared Staff Costs 32,658 31,889 32,283 394Shared Establishment Charges 6,435 3,998 5,212 1,214Shared ICT Charges 2,210 1,265 1,560 295Other Shared Administration Charges 1,650 3,412 3,315 -97Other Administration Charges 0 5,163 4,677 -486Travelling allowances paid to Board Members 0 0 0 0External audit fees 875 143 1,100 957

43,828 45,870 48,147 2,277(-) Sundry Income -8,990 0 -1,575 -1,575Net Consortium Charges 34,838 45,870 46,572 702

Drainage Rates Annual Value (Increases)/Decreases 52 -11 0 11Other Expenses 52 -11 0 11

Administration Charges 34,890 45,859 46,572 713

Administration charges include the Board's share of consortium expenditure, together with other expenses shown below (excludingtechnical support costs, which are included in the maintenance works expenditure). Detailed expenditure is regularly monitored bythe Consortium Management Committee and the Board. The Board's representatives are happy to receive any questions the readermay have and their contact details can be accessed from the Board's website:

The detailed maintenance work undertaken in each of the Board's sub districts is charged directly and can be viewed in theMaintenance section of this Report (other than Technical Support Costs, which are apportioned in the same way as AdministrationCosts). Maintenance work undertaken during this year and last year is summarised as follows:

20



(iii)


River Deben (Tidal Pumped) Sub District 4,187 5,503 5,589 86Lower Alde (Tidal Pumped) Sub District 4,536 5,962 6,054 92AHB (Tidal Pumped) Sub District 1,396 1,834 1,863 29Blyth (Tidal Pumped) Sub District 698 917 931 14Gravity Catchments Sub District 24,073 31,643 32,135 492

34,890 45,859 46,572 713

11 COST OF RECHARGEABLE WORKS 2010/11 2011/12 2011/12 2011/12Actual (£) Actual (£) Budget (£) Variance (£)

River Deben (Tidal Pumped) Sub District:Bank Charges 0 41 0 -41

Lower Alde (Tidal Pumped) Sub District:Bank Charges 0 53 0 -53Reinstatement of Sea Wall at Butley Creek 0 45,406 0 -45,406Crest Trial Works at Orford 0 54,595 0 -54,595

0 100,054 0 -100,054AHB (Tidal Pumped) Sub District:Bank Charges 0 14 0 -14Twin Banks Watercourse (EA) 4,778 0 0 0

4,778 14 0 -14River Blyth (Tidal Pumped) Sub District:Bank Charges 0 10 0 -10

Gravity Sub District:Bank Charges 0 111 0 -111

4,778 100,231 0 -100,231

12 TANGIBLE FIXED ASSETS Land andBuildings Total

CostOpening Balance as at 1-4-2011 255,334 255,334(+) Additions 0 0(-) Disposals 0 0Closing Balance as at 31-3-2012 255,334 255,334

DepreciationOpening Balance as at 1-4-2011 0 0(+) Depreciation Charge for year 15,958 15,958(-) Accumulated depreciation written out on disposal 0 0Closing Balance as at 31-3-2012 15,958 15,958

Net Book Value at 31-3-2011 255,334 255,334Net Book Value at 31-3-2012 239,376 239,376

Full details of all Assets are recorded in the Board's Fixed Asset Register, which can be made available to the reader upon request.The Board also shares ownership of a proportion of some of the WMA Office Equipment, which is recorded in the WMA's FixedAsset Register.

Administration and Technical Support costs are apportioned to each of the Board's sub districts as follows: River Deben (12%),Lower Alde (13%), AHB (4%), River Blyth (2%) and Gravity (69%):

21



13 CASH AT BANK AND IN HAND2010/11 2011/12

Bank Current Account 15,868 38,136Collectors Float 0 0

15,868 38,136

14 SHORT TERM INVESTMENTS

Short term Investments as at 31-3-2012 are as follows:Investment Maturity

Financial Institution Capital Date Date Interest RateSantander (UK) Investment Group 150,000 31/03/2011 Ongoing 1.98%

150,000

15 DEBTORS AND PREPAYMENTS2010/11 2011/12

Trade Debtors 0 54,488Drainage Rate Debtors 1,659 3,799EA Grants Due 3,515 8,520EA Highland Water Contributions Due 5,488 -10,179H M Revenue and Customs 6,757 -2,166Prepayments to WMA 27,827 0

45,246 54,462

16 CREDITORS AND RECEIPTS IN ADVANCE2010/11 2011/12

Trade Creditors 12,760 0Accruals 10,308 3,000Special Levy received in advance 0 1,499Payments received in advance 689 2,207

23,757 6,706

17 LOANS OUTSTANDING2010/11 2011/12

Loans Payable in next 12 months 10,906 11,165Loans Payable in more than 12 months 257,102 245,404

268,008 256,569

18 RESERVESGeneral Capital Total

Reserves Reserves ReservesOpening Balances as at 1-4-2011 57,687 116,996 174,683Net Surplus/(Defict) for the year 44,016 0 44,016Transfers to/(from) Reserves -35,462 35,462 0Closing Balances as at 31-3-2012 66,241 152,458 218,699

The Board (formerly Lower Alde IDB) took out loans to refurbish the following pumping stations in 2005:Butley, Chillesford and Gedgrave pumping stations. The cost of servicing these loans is charged directly to the Lower Alde (TidalPumped) Sub District.

Please note the Statement of Movement on Reserves, which shows the movements and balances of the General and CapitalReserves for each of the Board’s Sub Districts.

22



19 RELATED PARTY DISCLOSURES

(i)

(ii)

(iii)

(iv) The Board uses Rating Software for the collection of Drainage Rates known as DRS. This software is owned by South Holland IDBand was developed by Mr P J Camamile, the Chief Executive. The software is supported at no cost to the Board by Byzantine Ltd.Mr P J Camamile is the Company Secretary of Byzantine Ltd and his wife Mrs P Camamile is a Director. Both are shareholders.

All elected members of the Board pay drainage rates either as individuals, Partners in Partnerships, or as Directors of limitedcompanies; the exact nature of which can be found in the Rate Book as at 1 April 2011.

The Board is a member of the Water Management Alliance Consortium, who provide administrative services to the Board. TheBoard has 3 representatives who serve on the Consortium Management Committee, that include the Chairman and Vice-Chairmanof the Board.

The following Board members have performed pump attendant duties at the Board's pumping stations during the year, for whichthey received payment: Mr R Mann (Iken Hall Farms) £525; Mr P Cooke (Stanny House Farm Partnership) £525. Sir E Greenwell(Greenwell Farms) £1,050.

23


ACTUAL ACTUALBOX NO. ANNUAL RETURN, FOR THE YEAR ENDED 31 MARCH 2012 2010/11 2011/12

£ £

1 Balances brought forwardGeneral Reserves 86,593 57,687Capital Reserves 56,356 116,996As per Statement of Accounts 142,949 174,683

(-) Fixed Assets, Long Term Liabilities and LoansLoans Payable in less than 12 months -10,906 -10,906Long Term Liabilities -268,008 -257,102Net Book Value of Tangible Fixed Assets 255,334 255,334

-23,580 -12,674

(=) Adjusted Balances brought forward 166,529 187,357

2 (+) Rates and Special LeviesDrainage Rates 101,559 103,556Special Levies issued by the Board 113,995 121,549As per Statement of Accounts 215,554 225,105

3 (+) All Other IncomeGrants Applied 3,515 13,809Highland Water Contributions 70,753 69,250Other Income 1,785 5,343Income from Rechargeable Works 4,778 100,231As per Statement of Accounts 80,831 188,633

4 (-) Watercourses and Pumping StationsCapital Works 7,811 30,686Maintenance Works 149,201 124,976As per Statement of Accounts 157,012 155,662

(-) Loan Interest shown separatelyLoan Interest 13,454 12,792

13,454 12,792

(-) Depreciation charged to Maintenance WorksPumping Stations 0 15,958

0 15,958

(=) Adjusted Watercourses and Pumping Stations 143,558 126,912

5 (-) Loan Interest/Capital RepaymentsLoan Interest 13,454 12,792Capital Repayments 10,906 11,439As per Statement of Accounts 24,360 24,231

6 (-) All Other ExpenditureEnvironment Agency Precept 67,971 67,970Administration Charges 34,890 45,859Cost of Rechargeable Works 4,778 100,231As per Statement of Accounts 107,639 214,060

24



£ £

(+) Capitalised AdditionsLand and Buildings 0 0Plant and Equipment 0 0

0 0

(=) Adjusted Other Expenditure 107,639 214,060

7 (=) Balances carried forwardGeneral Reserves 57,687 66,241Capital Reserves 116,996 152,458As per Statement of Accounts 174,683 218,699

(-) Fixed Assets, Long Term Liabilities and LoansLoans Payable in less than 12 months -10,906 -11,165Long Term Borrowing -257,102 -245,404Net Book Value of Tangible Fixed Assets 255,334 239,376

-12,674 -17,193

(=) Adjusted Balances carried forward 187,357 235,892

8 Total Cash and Short Term InvestmentsCash at Bank and in Hand 15,868 38,136Short term Investments 150,000 150,000As per Statement of Accounts 165,868 188,136

9 Total Fixed Assets and Long Term AssetsLand and Buildings 255,334 239,376As per Statement of Accounts 255,334 239,376

10 Total BorrowingsLoans Due (<= 1 Year) 10,906 11,165Loans Due (> 1 Year) 257,102 245,404As per Statement of Accounts 268,008 256,569

25



£ £

ACTUAL ACTUAL7, 8 RECONCILIATION BETWEEN BOXES 7 AND 8 2010/11 2011/12

£ £

7 Balances carried forward (adjusted) 187,357 235,892

(-) Deduct: Debtors and PrepaymentsTrade Debtors 0 54,488Drainage Rate Debtors 1,659 3,799EA Grants Due 3,515 8,520EA Highland Water Contributions Due 5,488 -10,179H M Revenue and Customs 6,757 -2,166Prepayments to WMA 27,827 0

45,246 54,462

(+) Add: Creditors and Payments Received in Advance (<= 1 Year)Trade Creditors 12,760 0Accruals 10,308 3,000Special Levies received in advance 0 1,499Payments received in advance 689 2,207

23,757 6,706

(=) Box 8 165,868 188,136

8 (=) Total Cash and Short Term InvestmentsCash at Bank and in Hand 15,868 38,136Short term Investments 150,000 150,000

165,868 188,136

P J CAMAMILECHIEF EXECUTIVE

19 JUNE 2012

26

GOWING INTERNAL AUDIT SERVICES LTD

ANNUAL INTERNAL AUDIT REPORT

WMA INTERNAL DRAINAGE BOARDS

APRIL 2012

Gowing Internal Audit Services Ltd

INTERNAL AUDIT REPORT 1 EXECUTIVE SUMMARY 1.1 I have completed the 2011/12 internal audit of the WMA and the five member

Internal Drainage Boards (Kings Lynn, South Holland, Broads, Norfolk Rivers and East Suffolk) in accordance with the CIPFA Code of Practice for Internal Audit 2006 and with regard to the ADA Practitioners guide. This report also records the follow-up review of the 2010/11 audit which I undertook in December 2011.

1.2 The statutory basis for internal audit in local authorities in England (which

includes Drainage boards) is a specific requirement in the Accounts and Audit regulations 2011 which requires that the organisation must maintain an adequate and effective system of internal audit of its accounting records and of its system of internal control.

1.3 The internal audit service is an assurance function that provides an independent

and objective opinion to the organisation on the control environment by evaluating its effectiveness in achieving the organisation’s objectives. It objectively examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper economic, efficient and effective use of resources.

1.4 This audit included an implementation review of previous audit

recommendations, review of any system changes, sample testing of 2011/12 transactions and provision of best practice advice gained through my audit of other IDBs.

1.5 The main findings were:-

• an internal control risk due to the low number of staff • excellent end of month accounts file • VAT not claimed for car allowance payments losing in the region of

£1000 to £1500 per larger Board • a minor error on pension deductions for one Board • one employee has been incorrectly paid acting-up allowance. • all agreed recommendations from the main 2010/11 audit have now been

implemented.

A detailed control test programme and results is available upon request. 1.6 Recommendations have been proposed, discussed and agreed with the Chief

Executive. A management action plan is in Section 4. 1.7 A follow-up audit will be undertaken in October / November to ensure successful

implementation of the recommendations.


1.8 It is my opinion that, in respect of the areas covered by this report I can provide adequate assurance on the system of controls. This takes into account the low level of staff resource and the acceptance by the Boards of the associated risks.

1.9 I would like to place on record my thanks for the co-operation and assistance

given by all staff during this audit. EVALUATION CRITERIA Substantial Assurance

There is a sound system of control designed to achieve the system objectives and the controls are being consistently applied.

Adequate Assurance

While there is a basically sound system, there are weaknesses that put a minority of the system objectives at risk and/or there is evidence that the level of non-compliance with some of the controls may put a minority of the system objectives at risk.

Limited Assurance

Weaknesses in the system of controls are such as to put most or all of the system objectives at risk and/or the level of non-compliance puts most or all of the system objectives at risk.

No Assurance

Control is poor, leaving the system open to significant error or abuse and/or significant non-compliance with basic controls.


3 FINDINGS 3.1 The annual return for boards with annual income or expenditure under £6.5

million requires internal audit to provide certification on the following ten key control objectives. Any comment or issue on an objective is noted below otherwise the objective can be considered to be met:-

a) Appropriate books of account have been properly kept throughout the year. b) Financial Regulations have been met, payments were supported by invoices, expenditure was approved and VAT was appropriately accounted for. VAT has not been recorded or claimed for car allowance expenditure

c) The Board assessed the significant risks to achieving its objectives and reviewed the adequacy of arrangements to manage these. d) The annual rating requirement resulted from an adequate budgetary process; progress against the budget was regularly monitored; and reserves were appropriate. e) Expected income was fully received, based on correct prices, properly recorded and promptly banked; and VAT was appropriately accounted for. f) Petty cash payments were properly supported by receipts, expenditure was approved and VAT appropriately accounted for. g) Salaries to employees and allowances to Board members were paid in accordance with Board approvals and PAYE and NI requirements were properly applied.

h) Asset and investment registers were complete and accurate and properly maintained. I) Periodic and year-end bank reconciliations were properly carried out. j) Accounting statements prepared during the year were prepared on the correct accounting basis (receipts and payments /income and expenditure), agreed to the cash book, were supported by an adequate audit trail from underlying records, and where appropriate debtors and creditors were properly recorded.

4 MANAGEMENT ACTION PLAN

This action plan has been fully discussed and agreed with management.

The priority is based on the following;-

Critical A control failure that is critical to the organisation’s aims and objectives. This will require immediate action by management.

High A significant control weakness which is a significant risk to the service or organisation and is likely to lead to material loss or significant public criticism. This will require immediate action by management.

Medium A control that undermines the effectiveness of internal control and may lead to some loss or some public criticism but does not represent a risk to the organisation. This will require prompt action by management.

Low This might be important to the service but does not represent a significant risk for the service or organisation. This will require action by management but not necessarily immediate.

Ref: Recommendation Priority Management Comments Responsibility for

implementation and date

02.01.01 To further enhance income control the corresponding paying-in slip could be attached to collectors journal

L Not agreed. We do not have copies of the paying-in slips that are taken to the bank with the cheques received. It is already possible to reconcile monies that have been banked through the Collector’s Journal report in DRS by paying-in slip reference.

04.04.01 Introduce a report to produce the pension fund payments instead of manual calculations

M Agreed. Finance Assistants 2012/13

04.04.01 Discuss with the Lincolnshire Pension Fund manager the overpayment of pension contributions in respect of some of the South Holland staff and agree on how this is to be refunded.

M Agreed, although the total overpayment only amounted to £886.40.

Chief Executive 2012/13

04.04.01 The payments to the acting foreman to be recalculated and correctly paid with any underpayment refunded.

M Implemented

05.01.01 A “contracts” register be maintained to record details of all purchases/supplies over the quotation/tender limits including authorisation of emergency or specialist purchases.

M Agreed.

Ref: Recommendation Priority Management Comments Responsibility for implementation and

date 07.01.01 A cash book report to be attached to the

bank statement to provide evidence of the reconciliation.

L Not agreed. The bank reconciliations are already evidenced by both the CEO and Finance Assistant every month on the closing bank statements.

08.02.01 To ensure no misunderstanding the financial report to record that the investment limit has been exceeded when appropriate.

L Agreed for Broads IDB, but not for King’s Lynn IDB and South Holland IDB. These 2 Boards have previously agreed to increase the limits to £1m with any one financial group and this has been evidenced in the minutes of each Board accordingly.


11.02.01 The WMA group compile a risk register

M Not agreed. The WMA is not a legal entity. Any risks that are directly attributable to the WMA should be recorded in the King’s Lynn IDB risk register (as the Lead Board).

14.01.01 All members must complete the register of interests form.

H Agreed. IDB Chairmen 2012/13

17.01.01 All manual VAT claim calculations to be signed/dated and checked.

M Agreed. Finance Assistants 2012/13

17.02.01 VAT to be recorded and claimed on car allowance payments, noting that staff are to provide fuel receipts to enable the claim to be made.

M Agreed, although this will only apply to mileage undertaken and not to the lump sum allowances, and the Vat recoverable will not therefore be significant because the amounts payable to employees for undertaking approved business mileage are going to reduce significantly with effect from 1 April 2012, following adoption of the HMRC fuel rates as the new mileage rates payable for essential users.

Finance Assistants 2012/13

A All Board / Committee agenda and reports (with the exception of confidential items) to be stored on the web-site.

L Agreed. CEOs PA 2012/13

B Update the pension discretion policy to include all discretions.

M Agreed, but only for LCC.


C Consider the appointment of a part-time Finance manager / accountant to ensure full internal check.

M Agreed, however it would be preferable to promote one of the two Finance Assistants to the role of Finance Officer, as opposed to exposing the WMA Member Boards to the risk/additional cost of employing an additional person.

statement of accounts for the year ending house austin fields industrial estate kings lynn norfolk...

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