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A&R5nov19Agenda

*PLEASE NOTE START TIME* AGENDA MEETING:

AUDIT AND REVIEW COMMITTEE

[Membership: John Amsden, Chris Clark, Judith Donovan, Richard Good, Neil Heseltine, Robert Heseltine, David Ireton, Sandy Lancaster, Julie Martin, Jim Munday, Cosima Towneley and Richard Welch]. VENUE: The National Park Authority Office, Yoredale, Bainbridge DATE/TIME: Tuesday 5 November 2019 at *1.00pm*

�� Please see the attached “NOTES FOR MEMBERS OF THE PUBLIC AND AUTHORITY MEMBERS” ��

BUSINESS Indicative Part One – “Procedural items Duration Page No

1. Minutes of the meeting held on 9 July 2019 1

2. Public Questions / Statements 3. Apologies for absence 4. Declarations of lobbying Part Two – Items/Reports which require a decision from Members 5. Lessons Learned from the Authority’s Role as

Lead Partner in The Pennine National Trails Partnership (20 mins) 5 6. Progress on Corporate Plan 2019/20 Half Year Report (20 mins) 19 7. Annual Governance Report (20 mins) 37 Part Three – Items/Reports which are for Members to note 8. Annual Risk Management Review ( 5 mins) 59

A&R5nov19Agenda

Indicative Duration Page No

9 Mid- Year Treasury Management Review ( 5 mins) 77 10. Annual Audit Letter ( 5 mins) 81

�� 11. Urgent business – where the Chairman has agreed that there are special

circumstances David Butterworth Chief Executive National Park Office, Yoredale, Bainbridge 24 October 2019

Note: � Tea/coffee will be available before/during the meeting � Lunch will be available prior to the meeting for members who have also attended the prior PDF.

Audit & Review Committee Terms of Reference

To act on behalf of the Authority as follows: a) reviewing the Authority's performance in pursuing its policies and objectives, in

particular those in the Corporate Plan; and reporting to the Authority, its Committees or Sub-Committees, as appropriate;

b) acting as the lead Committee on the implementation and monitoring of the Authority’s performance assessment process;

c) leading on improvement planning and learning from major projects and on-going programmes;

d) instigating a programme of reviews in areas where the Authority is under-performing, needs to reduce costs, and/or needs to improve value for money, and report back to the Authority;

e) advising the Authority on its corporate governance policies and agenda, and implementing and managing the Authority's agreed policies in this area including overseeing its risk management strategy and considering the Annual Governance Statement;

f) arranging for the audit, both internal and external, of the Authority's affairs, including financial controls and accounts;

g) receiving all external and internal audit plans and reports, and monitoring the implementation of audit recommendations;

h) monitoring the Authority's complaints procedure, and as appropriate, determining any claims of maladministration and appropriate remedies;

i) scrutinising the Authority’s Treasury Management strategies, policies and day-to-day activities.

NOTES FOR MEMBERS OF THE PUBLIC AND AUTHORITY MEMBERS

1. Declarations of Interest:

Authority Members should make any declarations of interest at the start of the appropriate item.

2. Public Questions/Statements:

The National Park Authority has allocated up to 15 minutes at the start of meetings to allow members of the public the opportunity to ask questions and/or to make statements that relate to the work of the Authority or the appropriate Committee. Anyone wishing to ask a question or make a statement must ‘register’ that intention with the Chief Executive by 12 noon on the working day before the meeting. More detailed guidance is available from the Authority’s Committees Officer. (This procedure is in addition to the opportunity to speak on planning applications at the Planning Committee.) For anyone registered to speak at today’s meeting – the Chairman will call you at the appropriate time – each Speaker will have up to three minutes.

3. Filming/Recording of Meetings: The National Park Authority routinely records all full Authority and Planning Committee Meetings.

Filming/recording of Authority meetings, Committee and sub-committee meetings is permitted provided it does not disrupt the smooth running of the meeting. The Chairman reserves the absolute right to ask for filming or recording of a meeting to cease if, in his/her opinion, continuing to film/record would be disruptive to, or prejudice, proceedings. Ultimately the Chairman may suspend or adjourn the meeting. Anyone filming a meeting is asked only to focus on those actively participating. Those attending National Park Authority meetings should be aware that they may be filmed and that attendance at the meeting signifies agreement to this. The Authority cannot accept responsibility for the content of any recording made, once it has been taken away from the Authority’s premises.

4. Health & Safety:

All members of the public and Authority members should sign the Visitors Book on entering and leaving the building – this is necessary in order that, if the building has to be evacuated, all persons can be accounted for. In the event of the fire alarms being activated, all those present at the meeting should leave the building by the main entrance (if possible), go straight across the car park (with the central wall on your left) and assemble at the far right-hand side of the lower part of the car park by the Fire Assembly Point. Please go straight to the Assembly Point as not doing so may delay checks that everyone is accounted for.

5. Meeting Room(s) Hearing Loop:

As well as using a conference sound system at Authority and Planning Committee meetings, each of the rooms used for formal meetings of the Authority and its Committees has an induction loop system fitted. If you have a hearing aid with a ‘T’ setting, please switch it to ‘T’.

6. Agenda Papers: The agenda and all public reports for meetings of the Authority (and each of its Committees) are normally available for public inspection five working days before the meeting. The papers are also posted on the Authority’s website and a limited number of copies are available for reference at each meeting.

If you have any general enquiries/comments about the above or the way in which the

Authority’s decision-making processes operate, please contact the Committees Officer by post (to Yoredale, Bainbridge, Leyburn, DL8 3EL); telephone 0300 456 0030; or email:

[email protected].

Committee Membership and Member Champions as at 24 September 2019 Member Appointing

body Planning Audit &

Review Finance & Resources

Standards

M’ship/Quorum→ 17/7 12/6 13/6 5/3

Amsden John RDC � �

Clark Chris SoS(P) � �

Cotton Nick CCC S2 �

Donovan Judith SoS � �

Foster Richard CDC � � �

Frea Kevin LCyC S1 �

Good Richard RDC S2 �

Heseltine Neil SoS(P) S1 � �

Heseltine Robert CDC � �

Hutton Julie SoS S1 �

Ireton David NYCC � � �

Kirkbride Allen SoS(P) � � S

Lancaster Sandy EDC � �

Lis Carl CDC � �

Manners-Armstrong Jocelyn SoS � � �

Martin Julie SoS � �

McPherson Ian SoS(P) � �

Mitchell Ian SLDC � �

Munday Jim SoS � �

Parsons Stuart NYCC S1 �

Quinn Gillian NYCC � �

Sedgwick Karin NYCC �

Swain Neil SoS � �

Towneley Cosima LCC � �

Welch Richard NYCC � �

CDC= Craven District Council; EDC= Eden District Council; LCyC= Lancaster City Council; RDC=Richmondshire District Council; SLDC=South Lakeland District Council; CCC=Cumbria County Council; LCC= Lancashire County Council; NYCC= North Yorkshire County Council; SoS=Secretary of State; SoS(P)=Secretary of State (Parish);

CHAIRMEN AND DEPUTY CHAIRMEN

Date elected Chairman Deputy Chairman

Authority (25/06/19) Carl Lis Neil Heseltine

Planning (09/07/19) Julie Martin Neil Swain

Audit and Review (09/07/19) Judith Donovan Jim Munday

Finance and Resource (30/07/19) Jocelyn Manners-Armstrong Nick Cotton

Standards (07/11/17) Jocelyn Manners-Armstrong -

MEMBER CHAMPIONS

Area of responsibility Member appointed Term of appointment

Natural Environment Ian McPherson Nov15 – Dec21

Cultural Heritage Julie Martin Sep17 – Sep20

Recreation Management Nick Cotton Dec16 – Dec19

Promoting Understanding Judith Donovan June17 – June20

Development Management Jim Munday June18 – June21

Sustainable Development Chris Clark Sept19 – Sept22

Corporate Management Julie Hutton Dec18 – Dec21

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YORKSHIRE DALES NATIONAL PARK AUTHORITY

AUDIT AND REVIEW COMMITTEE

ITEM 1

Minutes of the meeting held at Yoredale, Bainbridge on Tuesday 9 July 2019. Present:

John Amsden, Chris Clark, Judith Donovan, Richard Good, Neil Heseltine, Robert Heseltine, David Ireton, Julie Martin, Jim Munday and Richard Welch.

COPIES OF ALL DOCUMENTS CONSIDERED ARE IN THE MINUTE BOOK

13/19 MEMBERSHIP OF THE COMMITTEE

The report of the Committees Officer was noted. 14/19 ELECTION OF CHAIRMAN

The Deputy Chief Executive reminded Members of the election procedure. Judith Donovan was nominated unopposed as Chairman and duly elected. RESOLVED –

That Judith Donovan be elected Chairman of the Audit and Review Committee, to hold office until the first meeting of the Committee following the annual meeting of the Authority in 2020.

JUDITH DONOVAN IN THE CHAIR

15/19 ELECTION OF DEPUTY CHAIRMAN

Jim Munday was nominated unopposed as Deputy Chairman and duly elected. RESOLVED –

That Jim Munday be elected Deputy Chairman of the Audit and Review Committee, to hold office until the first meeting of the Committee following the annual meeting of the Authority in 2020. 16/19 MINUTES

RESOLVED -

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That the minutes of the meeting held on 9 April 2019, having been printed and circulated, be taken as read and be confirmed and signed by the Chairman as a correct record. 17/19 PUBLIC QUESTIONS/STATEMENTS

No notifications of public questions or of the intention to make a statement had been received.

18/19 APOLOGIES FOR ABSENCE

Apologies were received from Sandy Lancaster and Cosima Towneley. 19/19 DECLARATIONS OF LOBBYING

No declarations of lobbying were made at the meeting.

20/19 REVIEW OF AUTHORITY PERFORMANCE IN 2018/19

CONSIDERED – the report and presentation of the Deputy Chief Executive. Members received a presentation on some aspects of the Authority’s performance in 2018/19 and asked questions and made comments. RESOLVED –

That the Authority’s performance in 2018/19 be noted. 21/19 HOUSING DELIVERY

CONSIDERED – the report of the Planning Policy Officer. RESOLVED –

That the report be noted. 22/18 INTERNAL AUDIT: 2019/20 AUDIT PLAN

CONSIDERED – the report of the Director of Corporate Services RESOLVED –

That the report be noted. 23/19 TREASURY MANAGEMENT PERFORMANCE: 2018/19

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CONSIDERED – the report of the Treasurer. RESOLVED –

That the report be noted.

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YORKSHIRE DALES NATIONAL PARK AUTHORITY ITEM 5

Committee AUDIT AND REVIEW Date: 5 November 2019 Report: LESSONS LEARNED FROM THE AUTHORITY’S ROLE AS LEAD

PARTNER IN THE PENNINE NATIONAL TRAILS PARTNERSHIP

Purpose of report 1. To provide an assessment of the Yorkshire Dales National Park Authority’s role as

Lead Partner for the Pennine National Trails Partnership, (this extends beyond the National Park boundary), and to identify lessons learnt.

RECOMMENDATIONS 2. That Members approve the recommendation in the attached report.

Strategic Planning Framework 3. The information and recommendation(s) contained in this report are consistent with the

Authority’s statutory purposes and its approved strategic planning framework:

• National Park Management Plan Objective B2 “Maintain and promote the Pennine Trails and other recognised long-distance routes, identify opportunities for new multi-user routes, and campaign for the Coast-to-Coast path to become a National Trail by 2024.”

Background 4. Reports on lessons learned from ‘major projects’ provide Members with an opportunity

to hear from officers about what has been achieved; what worked and what didn’t, and make recommendations for future project development and management across the Authority. Members agreed that ‘Lessons learned from the Authority’s role as Lead Partner in the Pennine National Trails Partnership where the Authority is now acting on behalf of a much wider group of bodies, extending beyond our boundary’ should be one of the ‘major projects’ for review this year.

5. Following implementation of Natural England’s New Deal approach to funding of National Trails, where trail partnerships take collective responsibility for local delivery within a national framework of guidance and support, the Pennine National Trails Partnership was established. It brings together all of the organisations which maintain or have an interest in the Pennine Way and Pennine Bridleway. The Pennine Way and

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Pennine Bridleway cross 16 Highway Authority areas and is the largest National Trail partnership established. The Authority, having the greatest proportion of its length, took on the Lead Partner role in April 2014. It employs the Partnership Manager and is accountable to Natural England on behalf of the Partnership for administering the Pennine Trails’ grant.

Achievements 6. The Pennine Way and Pennine Bridleway are in the same condition as they were

before the ‘New Deal’ and both meet the quality standards set out by Natural England. It is an achievement that trail condition has not declined, considering the static and declining budgets many partners have experienced. A very high standard is being maintained on a budget reducing in real terms.

7. Grant funding from Natural England has been matched at 33% each year, this is better than the required rate. At the same time, grant underspend by partners has reduced from around 10% to between 1 and 2% of the overall grant (Appendix 1 Table 2).

8. The Authority has successfully fulfilled all of the requirements of the Lead Partner role. Furthermore, the Authority’s processes for administrating the grant have been rated as ‘high assurance’, by the Authority’s Auditors, with ‘no significant control weaknesses’ identified. As Lead Partner, the Authority receives £15,000 from the grant each year approved by the Partnership, and this covers the Authority’s hosting costs in full.

9. Recent feedback from members of the Pennine National Trails Partnership, Trail

Rangers and Natural England is very positive, with Natural England saying that the Authority has exceeded their expectations. Themes that run through the feedback relate to clear and timely communication and dialogue with partners, and the transparent prioritisation and allocation of resources. The role of the Partnership Manager has been critical in promoting communication between partners and with other partnerships, funders and stakeholders.

10. Maintenance work has continued to be carried out on the Pennine Way and Pennine Bridleway in the Yorkshire Dales. The scale of the works, and therefore the level of grant income, has varied from year to year as shown in Appendix 1 Table 6. The Authority continues to receive grants towards the cost of two Ranger posts and for capital works protecting both the significant investment in the establishment of the Pennine Bridleway and the ongoing maintenance of the Pennine Way.

11. Through its involvement in the Partnership the profile of the Authority has been raised within the National Trail family, Natural England, and amongst its other 16 Pennine Trails partners. People look to the Authority as a reliable organisation and an efficient and effective delivery partner.

12. Working as a partnership has enabled the Pennine Trails to be promoted, both as part of the National Trail network in the UK and internationally. This is demonstrated by the recent Discover England Fund (DEF) project to promote seven of the National Trails (including the Pennine Way) to home and international audiences. This would not have been achieved without the individual maintenance authorities along the Pennine Way working together with a shared voice and shared objectives.

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Conclusion 13. The Pennine National Trails Partnership has operated as originally intended. It has

exceeded the expectations of Natural England, who were unsure whether such a large partnership could be successful. The budget allocated by Natural England has been spent efficiently and effectively to maintain the two National Trails in at least as good a condition as they were in 2013. This is despite the austerity measures in the public sector and reduction in Natural England’s grant funding.

14. The Authority has shown its continued commitment towards National Trails in the latest National Park Management Plan. The Authority is well established as the Lead Partner in the Pennine National Trails Partnership. Mechanisms are well established within the Authority for implementing this role, and the grant administration process has been given a rating of ‘high assurance’ by the Authority’s Auditors. The Partnership has always met the requirements of the grant conditions each year. The Authority has forged a name for itself as an effective and enthusiastic contributor to the National Trail family, putting itself in prime position for future engagement with new National Trails.

Heather Procter Pennine National Trails Partnership Manager 22 October 2019 Background papers Natural England (2013) The New deal; Management of National Trails in England from April 2013 http://publications.naturalengland.org.uk/publication/6238141 Questionnaire feedback from Pennine Trails Partners - September 2019 Internal audit annual report for 2016/17 Audit and Review Committee - April 2017

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LESSONS LEARNT FROM THE PENNINE NATIONAL TRAILS PARTNERSHIP PROJECT INTENTION OF THE PROJECT Why was the project set up? 1. The total length of both the Pennine Way and Pennine Bridleway National Trails

combined is 473 miles (the routes coincide in places). Of this length, 48 miles of the Pennine Way (18%) and 55 miles of the Pennine Bridleway (27%) are within the Yorkshire Dales National Park.

2. Natural England’s (NE) New Deal for National Trails was established in April 2013. It required that local partners should assume collective responsibility for delivery and maintenance of the National Trail running through their area. The New Deal set out new quality standards in exchange for continued financial support from Natural England.

3. The Pennine National Trails Partnership was established to implement the New Deal

for the Pennine Way and Pennine Bridleway and brought together 18 organisations (not all of which had Highway Authority duties) that had an interest in the Pennine Way and Pennine Bridleway. Prior to 2013 and establishment of the Partnership, each Highway Authority worked independently to maintain the sections of National Trail within their boundaries. There were also two separate National Trail Officers one employed for the Pennine Way and one for the Pennine Bridleway. These officers were responsible for surveying the routes, identifying priorities for grant spending, and assisting local authorities with applications directly to Natural England for grant funding.

What was the project intended to achieve?

4. A Partnership was set up to ensure that of all the organisations involved in maintenance of the Pennine Way and Pennine Bridleway worked collaboratively and met the quality standards that were expected of National Trails.

Original timescale 5. The financial support associated with the New Deal arrangements ran for 3 years from

April 2013 to March 2016. There was no clarity with regard to the longer term implementation beyond this date.

Original resourcing 6. The budget for the Pennine National Trails Partnership was determined by the level of

grant funding allocated from Natural England. Natural England calculated the amount of grant to give to the Partnership using a ‘funding formula’. This used factors such as length and complexity of the Trails to allocate funding for maintenance. The grant from

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Natural England, for the first three years of the partnership, was £280,000 in 2014 increasing to £350,000 in 2015.

7. The grant covered a maximum of 75% of the cost of the maintenance work. It was agreed at the start that the match funding would be secured from partners who were in receipt of maintenance grants from the Lead Partner. This could be from the Local Authority’s own budgets, external grant funding, or donations and other private contributions. Staff time was eligible match funding, but volunteer time was not. It was also agreed that the Lead Partner would receive a hosting fee (£15,000), and a Partnership Manager would be employed and these costs should be funded from the grant received from Natural England at 100%.

8. In 2014, the cost to the Authority of hosting the Partnership was calculated based on

full cost recovery (Table 1). This amount (£15,000) has been charged each year.

Table 1: Hosting fee – calculation of cost (2014)

Officer Grade Rate Time allocated Cost Head of Ranger Services B £220.93/day 52 days per year £11,489 Ranger Admin Support E £18.91/hour 2 hours per week £1,967 Finance Team E £18.91/hour 15 hours per year £284 Legal special £248.80/day 5 days per year £1,245 £14,985

Means of delivery 9. A Pennine Trails Partnership, with 18 members was established in 2013. The

Authority acted as ‘shadow’ Lead Partner. The Authority agreed to take on the Lead Partner role, formally, in 2014. As the Lead Partner the Authority was accountable to Natural England, on behalf of the Partnership, for administering the National Trails grant and securing the match funding required.

10. A full time Partnership Manager was employed by the Authority in May 2015, to run the

partnership and administer the claiming and distribution of grant money. This post was line managed by the Head of Park Management and sat alongside the Ranger Service. The Authority provided supporting functions for the Partnership across a range of services, including finance, legal, IT and communications.

11. The Partnership met twice a year. The Chair of the Partnership was originally an officer

from Natural England who fulfilled the role on a temporary basis until the Partnership could elect a Chair.

THE REALITY

Actual achievements to date

12. Before the partnership was established Natural England representatives had said that their experience and consultation suggested that a partnership would “never work on the Pennine Way” so they are relieved that the Authority showed leadership in taking the partnership forward.

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13. The Authority has fulfilled all of the requirements of the Lead Partner role expected of it, and Natural England have recently said:

“YDNPA’s ability to effectively ‘host’ the Pennine Trail Partnership has been the key to its success. The resources and expertise that have been deployed to support the Partnerships development has been invaluable given the complexity and diversity of the Partners and length/scale of the area that the Partnership covers” “Overall we would say that YDNPA have exceeded expectations in the role they have played in playing a key part in the wider National Trail Family and for that we are truly grateful.”

14. Feedback from the Partnership has also been very positive. Based on a recent

questionnaire of its members six out of the seven respondents are ‘very satisfied’ with the role that the Authority has performed as Lead Partner. All respondents agreed that they felt more engaged with the Pennine National Trails since the partnership was formed. Themes that run through the responses relate to clear and timely communication and dialogue between partners, and the transparent prioritisation and allocation of resources.

15. Six years on, the Pennine Way and Pennine Bridleway both meet the quality standards expected; a very high standard is being maintained on a minimal budget. It is an achievement that trail condition has not declined, considering the static or reduced budgets partners have.

16. Use of the available resources has been more effective with the partnership in place. Having a shared budget, managed transparently, has enabled partners to plan and prioritise works and spend grant allocations more fully. As a consequence the level of underspend has decreased from about 10% to 1 and 2% (Table 2). This is a direct result of the Partnership Manager monitoring individual partner grant offers and spend.

Table 2: Budget for the Pennine National Trails Partnership:

17. Grant funding from Natural England has been matched at 33%, every year, better than

the required rate of 25%. Furthermore, the Authority’s processes for administrating the grant have been rated as ‘high assurance’ by the Authority’s Auditors with ‘no significant control weaknesses’ identified.

18. The profile of the Authority has been raised within the National Trail family, Natural England, and amongst trail partners. Members look to the Authority as a reliable organisation and an efficient and effective delivery partner.

Year Partnership Budget

Total Grant from NE

Underspend on NE Grant

% Underspend on NE Grant

2013-14 £266,929 £22,804 8.5% 2014-15 £383,606 £287,705 £20,836 7.2% 2015-16 £466,571 £349,928 £3,323 0.9% 2016-17 £466,571 £349,928 £6,915 2.0% 2017-18 £466,571 £349,928 £6,630 1.9% 2018-19 £466,571 £349,928 £5,102 1.5% 2019-20 £443,243 £332,432 - -

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19. Significant works continue to be carried out on the Pennine Way and Pennine Bridleway in the Yorkshire Dales. The scale of the works, and therefore the level of grant income, have varied from year to year (Table 3).

Table 3: Partnership Grant and Authority Grant Allocation:

1 includes the Pennine Way Ranger and Pennine Bridleway Officer post, grants for capital works and the hosting fee and partnership manager’s costs.

2 includes staff time, office space and cash as match funding

20. Working as a Partnership has also bought added benefits. It has enabled the Pennine Trails to participate in projects to promote the National Trail network in the UK and internationally. This would not have been achieved without the individual maintenance authorities working together with a shared voice and shared objectives.

Actual timescale 21. The New Deal funding agreement came to an end, formally in April 2016. However,

Natural England has continued to grant fund National Trails, on an annual basis, without the commitment to a 3 year funding agreement.

Actual cost 22. Overall, the partnership expenditure has varied only slightly from that expected and

budgeted, a result of differences between anticipated and actual costs (Table 4). Table 4: Actual income and expenditure:

23. Table 4 shows the amount of grant received by the Authority, each year, is usually

higher than budgeted. This is because, as the end of the financial year approaches,

Year Grant from NE Grant allocated to YDNPA1

Match funding from YDNPA2

2014-15 £287,705 £70,401 Unavailable 2015-16 £349,928 £146,162 £36,181 2016-17 £349,928 £142,076 £35,464 2017-18 £349,928 £152,195 £44,310 2018-19 £349,928 £150,017 £41,692 2019-20 £332,432 £132,265 £37,510

Year Actual Partnership

budget

Actual grant from NE

Actual grant received by

YDNPA

Actual match funding from

YDNPA 2014-15 £366,694 £266,869 £63,157 £29,516 2015-16 £478,182 £346,605 £151,757 £34,434 2016-17 £475,585 £343,013 £142,225 £35,090 2017-18 £550,881 £343,298 £153,114 £43,890 2018-19 £469,725 £344,826 £147,183 £41,294

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the Partnership Manager identifies any areas of underspend, and makes one-off purchases eg people counters that were not in the original Authority budget. There are also opportunities to apply for additional ‘in-year’ funding (Table 5).

24. The partnership is now generating some income from its own activities eg merchandise sales, donations, other grants, and official beer sales. The latter is where breweries donate a proportion of their sales in return for using the National Trail label (Acorn logo) on their beers. This income is relatively small, but is usually unrestricted in terms of how it can be spent. It is therefore an important source of funding for promotion of the Trails, and other areas of work which are not eligible for NE funding. Table 5: Breakdown of additional funding received by the Partnership:

Year Additional grant from NE

website (inc. beer)

Other sources

Total additional income

2015-16 0 £1,103 0 £1,103 2016-17 £30,698 £1,124 0 £31,822 2017-18 £33,475 £4,392 £8,000 £45,867 2018-19 0 £5,911 0 £5,911

25. Staff and projects that contribute towards the maintenance of the Pennine Trails had been funded at a maximum rate of 70% between 2015 and 2019. This percentage was agreed by the Partnership to allow for the hosting and employment of the Partnership Manager to be funded at 100%. However, for the financial year 2019-20, NE implemented a 5% cut to the National Trails budget applied evenly across all trails partnerships. This cut was absorbed by the Partnership through a reduction from 70 to 63%, in the maximum amount of grant funding it now offers for staff posts - this was agreed by all partners. Grants for maintenance work are still offered at 70%. This means the Pennine Way Ranger and Pennine Bridleway Officer, employed by the Authority, are now grant funded at 63% (2019) compared to 75% (2013).

26. Table 6 shows the Authority’s income and expenditure in relation to its hosting of the

Pennine Trails Partnership and its maintenance of the Pennine Way and Pennine Bridleway in the National Park. The Authority has, on average, received 23% of the total partnership budget for trail maintenance each year.

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Table 6: Breakdown of Authority income and expenditure:

2014-15 2015-16 2016-17 2017-18 2018-19

Partnership

Hosting fee £15,000 £15,000 £15,000 £15,000 £15,000

Partnership Manager - £54,468 £45,350 £55,389 £53,047

Total grant £15,000 £69,468 £60,350 £70,389 £68,047

Grant % 100% 100% 100% 100% 100%

YDNP Maintenance

ranger posts grant £48,157 £44,348 £47,798 £50,609 £63,964

maintenance work grant £5,625 £37,941 £34,078 £32,116 £15,173

YDNPA match funding £29,516 £34,434 £35,090 £43,890 £41,294

Expenditure (grant + match) £83,298 £116,723 £116,966 £126,615 £120,431

Total grant £53,782 £82,289 £81,876 £82,725 £79,137

Grant % 65% 70% 70% 65% 66%

(% of NE partnership grant) (19%) (24%) (24%) (24%) (23%)

Overall

Income £68,782 £151,757 £142,226 £153,114 £147,184

Expenditure £98,298 £186,191 £177,316 £197,004 £188,478

27. Each year since 2015, as Lead Partner, the Authority has received £15,000 to cover

hosting costs and a 100% grant to cover the cost of employing the Partnership Manager. There are two methods that could be used to calculate the hosting fee. First, the same method as was used in 2014 (Table 1), but now with a clearer idea of the actual time involved (Table 7).

Table 7: Re-calculation of the hosting fee based on 2014 methodology

Officer Grade Rate Time allocated Cost Head of Ranger Services A £265.94/day 40 days per year £10,638 Ranger Admin Support E £19.47/hour 1 hour per week £1,012 Finance Team E £19.47/hour 40 hours per year £779 Legal special A £265.94/day 1 day per year £266 £12,695

28. The second is using the Partnership Manager’s cost based on actual salary, pension, national insurance and travel, phone, equipment etc. For calculating office facilities, IT support, and senior staff costs, the day rate for the Partnership Manager post could be used to calculate a more complete cost:

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Band C day rate £206.05/day x 255 days = £52,543 Salary, NI, pension = £37,597 Difference £14,946 = hosting fee of £15,000.

29. This confirms the hosting fee of £15,000 is still covering the Authority’s costs. A small

budget is required in addition to the hosting fee for other items not covered in the day rate such as equipment, travel, accommodation and specifics such as the CAMS software license, that are funded through the Partnership.

Actual means of delivery 30. The actual means of delivery was largely as envisaged. A Partnership Agreement was

put in place. An independent Chair was recruited for the Partnership in March 2016. The Partnership has agreed a vision and produced a Delivery Framework which set out how it would work as a Partnership to deliver the vision. The New Deal arrangements are still in place as a condition of claiming grant funding. This includes the need to work in partnership and to meet the quality standards.

31. The employment of a Partnership Manager ensures good coordination across the

Partnership. However, there has been an increase in workload created by the reduction in grant (working out how to absorb this cut), looking for other income sources, and also externally funded projects eg Discover England. The Pennine Bridleway Officer has been helping with Partnership tasks in 2018-19 and 2019-20, to coordinate and complete the annual condition surveys on the trails and download data from the network of user counters. The additional time has been funded from the NE grant. Prior to this, the post was employed 3 days a week on the Pennine Bridleway, with 2 days a week spent working on other funded projects, as required.

32. There is an assumption that Lead Partners will have a greater involvement in matters arising at a national level that affect National Trails, such as the ongoing debate regarding budget allocations. As such, the Head of Park Management regularly meets via teleconference or in person with other Lead Partners and Partnership Chairs from the National Trails in England and Wales.

SUSTAINING THE PROJECT

33. The Pennine National Trails are recognised within the National Park Management Plan 2019-24 as one of the special qualities of the National Park. Its objective is within B2:

“Maintain and promote the Pennine Trails and other recognised long-distance routes, identify opportunities for new multi-user routes, and campaign for the Coast-to-Coast path to become a National Trail by 2024.”

The role that the Authority is playing as Lead Partner for the Pennine National Trails Partnership is a significant part of achieving this objective. It undertakes this role as part of its rights of way work which is a ‘priority’ programme. The Head of Park Management is instrumental in leading this area of work.

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34. Funding from Natural England continues to be secured on an annual basis, with no security at present beyond the current year. However, the 2013 New Deal reiterated that National Trails are created using statutory powers set out in an Act of Parliament and upkeep is partly paid for by central government through grants.

35. National Trails are mentioned specifically in the 2019 Landscapes Review in proposal 15: Joining up with others to make the most of what we have, and bringing National Trails into the national landscapes family. The report goes on to say:

“We think they [National Trails] should be brought squarely into the fold of the new National Landscapes Service, supported by funding, giving them a national voice and focus”.

Whilst implementation is unclear, the future of National Trails may be more strongly aligned with that of National Parks and other ‘National Landscapes’.

36. The family of National Trails has come together to form a temporary ‘alliance’ in order to further develop proposals to establish a national body to represent National Trails. National Trails face an annual problem securing maintenance funding, and have had no means of speaking with a single voice. The alliance, and any future body, has a core ambition of securing a longer term financial settlement for National Trails.

37. In August 2018, the Partnership Chair was appointed to the role of Pennine National Trails Partnership Manager (Maternity Cover), and since August 2019 continues in the role as a job-share. The incumbent, understandably, feels that the role as Chair is not compatible with the role of Trail Officer. The Partnership is looking for a new Chair, a key position cementing the Partnership into the future.

LESSONS LEARNED What went well, and why? Team working/partnership working 38. The establishment of the Partnership has brought people together at two levels: those

who represent their authority on the management group, and those who are responsible for the day to day maintenance of the trail. All parties have appreciated the opportunity to become part of something bigger, and to share learning and experiences with others working on the trails. The Partnership has encouraged smaller partners to become more active in addressing issues along their sections.

Independent chair 39. An independent Chair has been a useful asset, bringing an element of impartiality to

discussions both within the Pennine National Trails Partnership and within the network of National Trails. The current Chair is coming to the end of his term so we are actively seeking a new independent Chair.

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Consistent branding 40. With a central point of coordination it has been possible to ensure that branding across

the two trails is more consistent. This includes the basic details of signage and waymarking and the uniform worn by Rangers looking after the Trails. Consistency of branding helps to give the trails greater visibility and improves awareness amongst users which contributes towards the National Trail quality standards.

Effective use of resources 41. Full use has been made of the resources available each year; with underspend now

only 1-2% on the amount of grant offered by Natural England. The Partnership is transparent in the way the projects are prioritised, and grant is allocated. This does mean that some authorities may find it harder to secure grant for large projects that aren’t of sufficient priority, but issues are resolved in a timely manner.

National working 42. The Partnership enables the Pennine Trails to be represented with a coherent voice on

discussions at a National level. This has included negotiations for a more secure funding, management of the National Trails’ website, and development of a new body to represent all National Trails, as well as joint working on tourism projects.

Demonstration of cross boundary working 43. The Partnership has enabled cross-boundary working in relation to a number of

different activities including promotion of the Trails. The Rangers who maintain the trail have also increasingly begun to work across boundaries, primarily to carry out condition surveys, but also to advise and assist with activities related to trail maintenance and data collection.

Pennine National Trails Partnership Manager 44. At the establishment of the Partnership a decision was made to replace the existing

Trail Officer roles on the Pennine Way and Pennine Bridleway (2 posts) with a single Partnership Manager post. This was a significant change, but has been embraced by all partners, and has proved to be a success for the reasons outlined above.

What went less well, and why? Lack of certainty and budget reduction 2019/20 45. There has been a reduction in the National Trail maintenance budget for 2019/20

following the budget being frozen in 2014/15. Natural England has implemented an efficiency saving of 5%, reducing the available spend on the Pennine Trails by £17,497. There is an ongoing dialogue with Natural England regarding funding for National Trails and lack of certainty, making planning difficult.

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Lack of security for Trail Maintenance staff posts 46. There are five officers employed by different authorities working on maintenance along

the Pennine Trails. As funding from Natural England is usually secured only one year at a time, most of these staff are employed on annual contracts. These contracts are not renewed until Natural England has offered funding to the Partnership and it has agreed to fund the staff posts. This often means contracts are renewed at the last minute, or are even split into shorter contracts through the year to manage risk to employers. This is a stressful position for these officers. All are dedicated and have been with National Trails for a considerable length of time, their commitment is not recognised under the current arrangements of rolling contracts.

Lack of funding for promotion

47. There is a constant struggle to find funds to cover promotional activities including

leaflets and anything associated with the national National Trails website. The hosting and routine maintenance of the website, originally anticipated to be self-funding, has not been realised. There is therefore a demand on trail partnerships to meet the deficit. Funds for the website cannot currently come from the NE grant; but must be raised through other means. Most years sufficient funds are raised through donations and merchandise sales on the Pennine Way, but the Pennine Bridleway does not attract the same level of interest. It had been hoped to use funds raised in this way to deliver more maintenance and improvement works on the trails, but no other suitable sources of funding for promotion have been found. A change by Natural England in relation to use of their grant funding is expected but the amount spent on the website will reduce the amount available for maintenance purposes, as no additional funding is proposed.

Business Engagement 48. It has proven challenging to engage with businesses along the Pennine Way and

Pennine Bridleway for a number of reasons. One being lack of time and budget to be able to initiate worthwhile contact of benefit to the trails, and the businesses, though this was temporarily rectified by the Discover England Fund project. Secondly, the linear nature of the trails and the fact that they pass through so many different administrative areas makes it difficult to bring businesses together to share learning and work more closely together.

Locations for meetings 49. As the Pennine Trails cover such a long north-south distance it is very difficult to find

suitable central locations for meetings of all partners. As a result, those at the peripheries of the trail and those with very small sections find it difficult to justify attendance at meetings. Northern and southern specific meetings have been tried. The Northern Working Group works successfully alongside the North Pennines Access and Recreation Working Group, but a southern group has struggled to establish due to lack of commitment from partners.

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RECOMMENDATIONS FOR THE FUTURE

50. The two recommendations from this review are:

(a) Review the £15,000 hosting fee annually

In 2014 the cost to the Authority of hosting the Partnership was calculated based on full cost recovery. This amount, £15,000, has been charged as a hosting fee each year since then. It is recommended that the Partnership Manager’s day rate, which includes corporate overhead costs such as IT, HR etc, minus the Partnership Manager’s salary is used from 2020-21 onwards as the means of calculating the hosting fee. An allowance should also be made for travel and other on-costs. (b) Transfer learning to the Coast to Coast

The experience gained through the Pennine National Trails Partnership puts the Authority in a good position regarding the Coast to Coast. If the Coast to Coast does become a National Trail, it is likely to require a Partnership and a Lead Partner. The Authority will be able to show it has a strong track record as Lead Partner with the Pennine National Trails Partnership a successful model that can be followed, or adapted, as appropriate.

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ITEM 6

Committee: AUDIT AND REVIEW Date: 5 November 2019 Report: PROGRESS ON CORPORATE PLAN – 2019/20 HALF YEAR

REPORT

Purpose of Report 1. To inform Members of progress towards achieving the objectives set out in the 2019/20

Corporate Plan.

Recommendation 2. That Members consider and note the update on the Authority’s performance in the first

half of the year and agree that the Action Plan be amended accordingly.

Strategic Planning Framework 3. The information and recommendation contained in this report are consistent with the

Authority’s statutory purposes and its approved strategic planning framework:

• Corporate Plan objective 34. Plan and manage the Authority’s work so as to make the most effective use of its resources….

Background 4. This report sets out the progress made towards achieving the:

• 38 objectives in the Corporate Plan for 2019/20.

• 191 actions that will help achieve those objectives (in the 2019/20 Action Plan). Progress 5. The overall summary of progress is as follows:

• 36 of the 38 objectives (95%) are either ‘achieved’ or ‘on-course’;

• 1 objective relating to a priority programme has been narrowly missed;

• 1 other objective is not ‘on-course’.

6. Appendix 1 shows progress on all the objectives. Objectives that relate to the Authority’s four priority programmes have been highlighted (in green).

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7. For each objective, the relevant lead officer has provided a 6 month progress update

and the expected end of year position. All figures, estimates and projections have been ‘signed off’ by the relevant Director.

8. Of the 17 objectives that relate to the Authority’s priority programmes, 16 are ‘on-

course’. Significant successes include:

• providing support and advice to farmers entering over 100 new agri-environment agreements (Objective 1);

• carrying out works to improve the condition of rights of way such that 86% are ‘easy to use’, up from 84% last year (7);

• completing a survey of the accessibility of rights of way across the new area of the National Park (9).

• supporting the UCI World Cycling Championships and the Tour de Yorkshire 2019 route through the National Park (15)

• currently negotiating agreements for a further 136 ha of new woodland this year (23);

• continuing to exceed all national targets for dealing with planning applications in a timely fashion (28)

9. The one priority objective that we expect to be narrowly missed is in relation to activity days for under-represented groups (10). Due to staff turnover, around 700 days have been provided so far this year. Whilst further activities are planned, they are unlikely to reach the target of 900.

10. Of the remaining 21 objectives, 20 are achieved or on course. Significant successes include:

• completing a ‘light audit’ of the National Park in preparation for the bid for Dark Skies Reserve status (2).

• with Friends of the Lake District, launching the £3.5 million Westmorland Dales Landscape Partnership programme, established a workshop and office base at Tebay, as well as recruiting an apprentice supervisor and 4 apprentices (5);

• running a series of events and activities, including the Dales Cheese Festival (12);

• providing over 2,600 volunteer days so far this year (13);

• raising more than £29,000 from donations and merchandising towards the maintenance of the Three Peaks route (14);

• funding another 16 local projects that bring economic, social and environmental benefits through the Sustainable Development Fund (27).

11. The one objective that is clearly ‘not on course’ relates to new housing completions

(25). As has been flagged up with Members in recent years, completions remain extremely low. Housing permissions have increased significantly this year (already 60, compared to 64 in whole of last year) but it looks unlikely that completions will be much higher than last year’s 25. There are now almost 600 ‘uncompleted’ permissions for new housing units in the National Park.

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12. Appendix 2 shows details of all the actions that were:

a) scheduled for completion by the end of September; or

b) have been achieved early; or

c) need to be changed. 13. Of the 48 actions that have been achieved, significant successes include:

• developing a new National Park website;

• designing a new National Park Management Plan section on the Authority’s website, to enable monitoring of all the 49 objectives;

• hosting the 2019 Society of National Parks Staff Conference (SNPS) and the 2019 UK National Parks Conference;

• setting up a ‘3 Peaks’ notification scheme, to improve visitor management;

• supporting the development of a Youth Forum for Authority staff; 14. In total, 19 actions have been rescheduled to later this year, 9 have been revised; and,

2 cancelled altogether. These are all identified with a brief explanation.

15. It is worth noting that the major flooding event in Swaledale and Arkengarthdale has had an effect on the timing of a handful of actions. However, it is the damage it has caused that is likely to have a more significant longer-term impact on the objectives for both rights of way (7) and scheduled monuments (4).

16. Five new actions will be added to the Action Plan (see Appendix 3) to reflect activity

and decisions made since the original Plan was approved in May. Conclusion 17. The new set of objectives agreed in March now better reflect both the focus and

breadth of the Authority’s work. Initial progress has been almost universally positive, particularly in relation to priority areas of work: Access for All; Development Management; Land Management & Biodiversity; and, Rights of Way.

Gary Smith Deputy Chief Executive 21 October 2019

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Corporate Plan Objectives 2019/20 – 6 month progress Appendix 1

A distinctive living, working cultural landscape that tells the story of generations of people interacting with their environment

Objective Target by March 2020

Progress Status

1. During Brexit transition, support farmers and landowners to continue to deliver a range of public benefits through national agri-environment scheme agreements and similar initiatives, and monitor take-up.

Assist 100 new

agreements

Assisted with over 100 agreements (93 mid tier CSF applications and enquiries; 3 BEHTA surveys for farmers entering CS HT; 4 full mid-tier applications, 3 CS HT applications and 3 Woodland HT applications)

�� 2. Maintain the National Park as a place where a true sense of

tranquillity, remoteness and solitude can be found, and by 2021 obtain Dark Skies Reserve status to enhance and promote enjoyment of its night sky.

A Light Management

Plan

Lighting audit has been completed. On course to produce light management plan by March.

�� 3. Use DCM and the Historic Environment Record to help local

heritage groups to research, record and promote the stories of the National Park area, including completing the enhancement of the HER for the new area of the National Park by 2024.

Complete Rich Seam

Project

Kettlewell water-wheel installed and textile gallery completed at DCM. Awaiting new LIDAR data before enhancing the HER, starting in 2021. ��

4. Help local people to restore, repair and - where possible - bring back into use nationally-important historical sites, buildings and structures so that fewer than 4% of scheduled monuments and listed buildings are ‘at risk’ by 2024.

10 SM at risk 77 LB at risk

9 scheduled monuments and 76 listed buildings currently ‘at risk’. However, impact of Swaledale floods on monuments is still being assessed. ��

5. Deliver co-ordinated programmes of activity that enhance the distinctive landscape, geology and cultural heritage of the ‘Ingleborough Dales’ (by 2020) and the ‘Westmorland Dales’ (by 2023).

Complete IDLP and year 1 of WDLP

Westmorland Dales programme launched in March 2019. On course to deliver fourth year of Ingleborough Dales programme. NLHF has recently agreed to extend IDLP until December 2020.

�� 6. By 2022, secure significant funding to repair, restore, and,

where appropriate, find adaptive new uses for traditional field barns, particularly those in Swaledale, Arkengarthdale and Littondale.

5 barns restored

2 barns currently being restored through the Muker Barns project, with a further 3 being done through the Ingleborough Dales Landscape Partnership. ��

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A friendly open and welcoming place with outstanding opportunities to enjoy its special qualities


Progress Status

7. Benefit a wide variety of users by raising the standard of all public rights of way so that 90% are ‘easy to use’ by 2023.

86%

Latest survey shows 86% of routes are easy to use (up from 84% last year).

��

8. Maintain and promote the Pennine Trails and other recognised long-distance routes, and campaign for the Coast-to-Coast footpath to become a National Trail by 2024.

Funding secured for 3-

year programme

Annual maintenance programmes being delivered. Government issued 1-year funding settlement (for 2020/21. ��

9. Carry out works to improve access on appropriate public rights of way and established permissive routes so that 262km (10%) are suitable for users of all ages and abilities by 2024.

196km suitable for all

users

10 km of routes has been improved, taking the total to 190 km that are suitable for all users.

��

10. By 2024 provide 6,000 people from under-represented groups with activity days that enable them to access the special qualities of the National Park, and so increase their understanding, enjoyment, health and well-being.

Activity days for 900 people

Around 700 activity days provided so far this year. Some further activities planned but unlikely to reach target of 900. ≈≈≈≈

11. Through educational and skills-based activities, inspire 1,500 young people from in and around the National Park to explore and enhance their environment each year.

Activities for 1,500 young

people

On course to achieve target of 1,500.

��

12. Run a cohesive programme of inspirational, participatory activities that attract at least 4,000 people each year to find out more about the National Park’s special qualities.

Activities for 4,000 people

Figures not yet collated but expecting to be far in excess of 4,000 people from e.g. the Cheese Festival, Dark Skies Festival, Learning & Engagement Events, Go Wild Events and Guided Walks.

��

13. Give people from all backgrounds an opportunity to enjoy and contribute to the National Park by providing at least 7,000 volunteer days per year, with 15% coming from under-represented groups.

7,000 volunteer

days

2,600 days have been recorded so far this year. Always a time lag in records, and still expect to achieve the target. ��

14. Work with organisers of large-scale events to ensure they are well run, benefit local businesses, and contribute to the maintenance of the National Park’s natural capital, for example funding the cost of maintaining the Three Peaks route.

Raise £20,000

£29,000 income received from donations and merchandise sales already this year.

��

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15. Promote and encourage responsible cycling by supporting world class events that showcase the National Park, enabling the development of four ‘cycle hubs’, and creating at least one further family-friendly cycling route by 2023.

1 hub

2 cycle hubs developed – at Reeth and Settle. UCI World Championship events and a stage of the Tour de Yorkshire held in the National Park this year. ��

16. Maintain ‘green lanes’ and, where appropriate, manage use by recreational motor vehicles, including enforcing any restrictions imposed by Traffic Regulation Orders.

90% compliance with TROs

On target to reach 90% compliance.

��

Home to the finest variety of wildlife in England


Progress Status

17. Support farmers and landowners to restore and manage landscape-scale mosaics of priority habitats so that:

a. 30% of the priority habitats outside nationally-designated wildlife sites are in good condition by 2024;

n/a

Most recent figure is 22% (2016). Updated figures not available until 2020 Trends and Status Report but no reason to think the objective won’t be achieved.

��

b. at least one landscape-scale ‘nature recovery area’ has been created by 2021.

Submit Tees-Swale project

bid

Stage 2 bid to National Lottery still on course for submission in February 2020. Match funding secured from Esmee Faibairn Foundation (£300k) and Richmondshire District Council (£50k).

�� 18. Work with farmers and landowners to achieve and maintain

stable or increasing populations for 90% of priority species by 2026, including the UK ‘red-listed’ upland birds — for which the National Park is renowned.

n/a

Most recent figure is 81% (2016). Updated figures not available until 2020 Trends and Status Report but no reason to think the objective wont be achieved ��

19. Work with farmers and landowners to improve the condition of the Aire, Eden, Lune, Ribble, Swale, Ure and Wharfe so that at least 90% of all rivers achieve ‘good ecological status’ by 2027.

47% of rivers

Updated figures not available from EA until December. However, Yorkshire Dales catchment partnerships delivering against its objectives, working with Rivers Trusts.

�� 20. Work with farmers in Wensleydale to demonstrate the benefit

of ‘high nature value', low-input farm systems through a 5-year trial of a 'payment by results' approach to agri-environment funding.

Complete 3rd year of trial

18 farmers in the scheme. All monitoring work completed. Launched report of the original EU-funded pilot.

��

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21. Work with moorland managers and other key stakeholders to end illegal persecution of raptors, including independent and scientifically robust monitoring, and co-ordinated hen harrier nest and winter roost site protection.

Establish local raptor

group

National raptor persecution priority delivery group due to publish national action plan in November. Local group will then be set up early in 2020. ��

Resilient and responsive to the impacts of climate change, storing more carbon each year than it produces


Progress Status

22. Work with farmers and landowners to ensure that at least 70% of all woodland is in active management by 2023, including positive management of conifer plantations to increase suitable habitat for red squirrels and black grouse.

66% in management

66% of woodland currently in management.

�� 23. Support landowners to create at least a further 450 hectares of

native broadleaved and mixed woodland that enhances the National Park’s landscape by 2024.

180 ha created

90 ha funded in 2018/19 and currently have schemes in development for a further 136 ha this year.

�� 24. Work with farmers and landowners to deliver landscape-scale

natural flood management projects in the Aire, Eden, Ribble, Lune, Swale, Ure and Wharfe catchments.

7 projects

7 projects underway: 5 being funded through CS Facilitation Fund, plus additional projects in Bishopdale and with the Lune Rivers Trust. ��

Home to strong, self-reliant and balanced communities with good access to the services they need


Progress Status

25. Support the completion of 400 dwellings in a range of tenures, sizes, types and prices by 2024.

135 dwellings

125 dwellings approved (including 60 already this year) so expect to reach 170 by year end. However, completions remain low with only 25 last year, so figure unlikely to be more than 60 by year end.

x 26. Undertake a 5-year programme of measures to promote the

National Park as a place to live for younger, working age households (18-44) to help halt the decline in their numbers

Complete first year of

programme

Range of activity underway, including the first Park-wide socio-economic study, which will be published in November. ��

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27. Use the Sustainable Development Fund and other funding sources, to support 20 new local projects each year that bring economic, social and environmental benefits to the National Park.

20 local projects

£94,300 has been allocated to 16 local projects so far this year.

��

Providing an outstanding range of benefits for the nation based on its natural resources, landscape and cultural heritage, which underpin a flourishing local economy


Progress Status

28. Provide an efficient development management, including ensuring that 65% of minor and 80% of ‘other’ planning applications are being determined within eight weeks and at least 80% of applicants are satisfied with the service provided.

65%/80% of applications determined

on time.

Current figures are 80% of minor applications and 92% of ‘other’ applications determined on time.

�� 29. Improve the quality, variety and marketing of the tourism ‘offer’

to encourage more overnight stays and more visitors in the quieter months, so that the value of tourism grows by at least 5% in real terms by 2024.

1% increase

Baseline figure for 2018 has been calculated, and is currently being analysed to see if an initial trend can be identified. ��

30. Promote the National Park as a leading sustainable tourism destination, including enhancing the locations of 4 National Park Centres to create ‘visitor hubs’ that promote local distinctiveness and assist destination promotion.

2 visitor hubs created

1 visitor hub already created at Aysgarth NPC. Re-development of Grassington NPC is well underway and due to be completed this winter. ��

31. Develop and promote new events, festivals and attractions based on the National Park’s special qualities and local distinctiveness so that at least 10% of visitors each year are coming for the first time.

10% first time visitors

Cheese festival and Dark Skies festival taken place.

�� 32. By 2023, provide at least 20 apprenticeships that focus on the

skills that are essential to maintaining the National Park’s special qualities.

12 apprentices

10 apprentices currently employed (including 4 from the Westmorland Dales Landscape Partnership), and recruitment underway for two more. ��

33. Work with neighbouring authorities to produce a single, updated Local Plan for the whole of the National Park by 2023, which will help achieve the vision and objectives in the National Park Management Plan.

Public consultation on issues

Strategic Housing Market Assessment will be published in November. Public consultation on the issues for the Local Plan will follow in January. ��

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An effective organisation, providing high quality services


Progress Status

34. Plan and manage the Authority’s work so as to make the most effective use of its resources, including generating sufficient income to maintain expenditure at the same level as 2014/15 in real terms across the extended National Park area.

£7.9 million

Current budget projection for income is £8.1 million. All main income streams are on or ahead of budget profile. ��

35. Provide high quality, efficient and effective services and communications to the public and other stakeholders, and so maintain the Customer Service Excellence standard every year.

CSE standard retained

Assessment taking place end of October 2019.

�� 36. Operate governance arrangements that are fit for purpose, as

reported through the Annual Governance Statement and the Annual Governance Report.

Unqualified audit opinion

Unqualified audit opinion achieved. All other governance actions are on course to be achieved

� 37. Ensure that we have personnel policies, procedures, terms and

conditions to attract and support the right people with the right skills to deliver the Authority’s work effectively, as evidenced by accreditation under the Investors in People standard.

Maintain IIP accreditation

IIP accreditation obtained beginning of 2019 – and is valid for three years. Mid-term assessment taking place November 2019. Implementation of IIP action plan ongoing.

�� 38. Provide facilities and IT systems that are fit for purpose and

support the effective delivery of our services, as evidenced by the external auditor’s annual ‘value for money’ opinion and internal audit’s reporting on relevant systems.

Implement 2019/20 IT

plan

External Audit starts in November. IT implementation on course.

��

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Actions Appendix 2

1 During Brexit transition, support farmers and landowners to continue to deliver a range of public benefits through national agri-environment scheme agreements and other similar initiatives, and monitor take-up

1.2 Support 100 farmers to secure new agri-environment agreements Mar Achieved

2 Maintain the National Park as a place where a true sense of tranquillity, remoteness and solitude can be found, and by 2021 obtain Dark Skies Reserve status to enhance and promote enjoyment of its night sky

2.1 Undertake a lighting audit and identify ‘core’ area as a pre-requisite for Dark Skies reserve status application Sep Achieved

3 Use the Dales Countryside Museum and the Historic Environment Record to help local heritage groups to research, record and promote the stories of the National Park area, including completing the enhancement of the Historic Environment Record for the new area of the National Park by 2024

3.1 Host the national ‘Joint Statement’ event with Historic England in Arkengarthdale May Achieved

3.2 With funding from Historic England, carry out an audit of the Historic Environment Record Sep Achieved

4 Help local people restore, repair and - where possible - bring back into use nationally-important historical sites, buildings and structures so that less than 4% of scheduled monuments and listed buildings are ‘at risk’ by 2024

4.1 Undertake emergency flood prevention and stabilisation work at Grinton smelt mill Dec Rescheduled1

5 Deliver co-ordinated programmes of activity that enhance the distinctive landscape, geology and cultural heritage of the ‘Ingleborough Dales’ (by 2020) and the ‘Westmorland Dales’ (by 2023)

5.1 Agree an annual joint Action Plan with YDMT for a range of activity to enhance the National Park’s landscape Jun Achieved

5.2 Establish a joint workshop and office base for the Westmorland Dales scheme at Tebay Jul Achieved

5.7 Support the Electricity Distribution Companies to place overhead electricity lines underground, including the completion of schemes at Reeth, Oughtershaw and Keld (p)

Mar Revised2

6 By 2022 secure significant funding to repair, restore, and, where appropriate, find adaptive new uses for traditional field barns, particularly those in Swaledale, Arkengarthdale and Littondale

6.1 Support the RDPE Traditional Farm Buildings pilot project, securing funding to restore at least 12 barns Dec Revised3

6.3 Complete the Muker Barns project, restoring 5 traditional barns (p) Mar Revised4

1 Culvert washed away in Swaledale Floods. Works to stream to prevent further flooding of smelt mill will be carried out this Autumn.

2 Scheme at Reeth has been delayed but new scheme at Trenhouse (Malham Moor) has been added to this year’s programme.

3 Project has been extended until March 2020. Now expect to secure funding for 10 barns.

4 Difficulties with contractors mean that 2 barns will be restored this year, rather than 3 – taking the total to 4.

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Actions Appendix 2

7 Benefit a wide variety of users by raising the standard of all public rights of way so that 90% are ‘easy to use’ by 2023

7.1 Determine whether Lancashire County Council will provide the Authority with a scheme of delegation for rights of way in the Lancashire part of the National Park

Jun Rescheduled5

7.2 Review the recreation and tourism framework document ‘Special Qualities, Special Experience’ (p) Jun Achieved

7.3 Update the open access leaflet Jul Achieved

7.4 In conjunction with the British Mountaineering Council promote and deliver the practical construction works of the ‘Mend our Mountains II campaign’ for the Three Peaks project ‘Pitch in for Whernside’

Sep Achieved

7.12 Work with local communities, visitors, the Police and animal welfare partners to improve messaging about the behaviour of dogs.

Mar Achieved

8 Maintain and promote the Pennine Trails and other recognised long-distance routes, and campaign for the Coast-to-Coast footpath to become a National Trail by 2024

8.1 Review the lessons learned from the Pennine Trails Partnership project Nov Achieved

9 Carry out works to improve access on appropriate public rights of way and established permissive routes so that 262 km (10%) are suitable for users of all ages and abilities by 2024.

9.1 Revise the ‘Miles without Stiles’ leaflet and website to promote accessible routes to a wider audience Sep Revised6

9.2 Survey the accessibility of 50km of rights of way in the new area of the National Park (pp) Oct Achieved

12 Run a cohesive programme of inspirational, participatory activities that attract at least 4,000 people each year to find out more about the National Park’s special qualities

12.1 Deliver 3 ‘Dog Days’ in partnership with North Yorkshire Police and the Dogs Trust May Rescheduled7

12.2 Provide a YDNPA presence at 2 large and 10 smaller agricultural shows Sep Achieved

12.3 Deliver a programme of 50 high quality, well promoted, volunteer led guided walks Oct Achieved

12.4 Design, promote and deliver an inspirational programme of 25 learning and engagement events and activities for families

Oct Achieved

13 Give people from all backgrounds an opportunity to enjoy and contribute to the National Park by providing at least 7,000 volunteer days per year, with 15% coming from under-represented groups

13.1 Produce a volunteer supervisors’ handbook (pp) Jun Rescheduled8

5 LCC due to review their position and respond by December.

6 Put back to March 2020 to review ‘Miles without Stiles’ promotional material and promote routes through new Authority website.

7 Police were unavailable at one event, so the third day has been booked to take place before end of March 2020.

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Actions Appendix 2

13.4 Run 30 ‘Young Rangers’ task days Mar Revised9

14 Work with organisers of large-scale events to ensure they are well run, benefit local businesses, and contribute to the maintenance of the Park’s natural capital, for example funding the cost of maintaining the ‘Three Peaks’ route

14.1 Establish a web-based Three Peaks notification scheme for groups Sep Achieved

14.2 Undertake an economic impact study of the Three Peaks walks Dec On course

14.3 Produce a Three Peaks Challenge and Individual Peaks map to assist walkers around the area and promote the Three Peaks Project (p)

Dec Rescheduled10

15 Promote and encourage responsible cycling by supporting world class events that showcase the National Park, enabling the development of four ‘cycle hubs’, and creating at least one further family-friendly cycling route by 2023

15.1 Support the Tour de Yorkshire 2019 route through the National Park May Achieved

15.2 Maximise the legacy opportunities from the Cycling World Championships for example by producing a short film to engage young people with the cycling opportunities in the National Park

Sep Achieved

16 Maintain ‘green lanes’ and, where appropriate, manage use by recreational motor vehicles, including enforcing any restrictions imposed by Traffic Regulation Orders

16.1 Put in place management plans for Ravenstonedale Moor and The High Way (northern section) (p) Sep Rescheduled11

17 Support farmers and landowners to restore and manage landscape-scale mosaics of priority habitats so that:

a) 30% of the priority habitats outside nationally-designated wildlife sites are in good condition by 2024; b) at least one landscape-scale ‘nature recovery area’ has been created by 2021

17.1 Complete a contract to design and test methodologies for farmers to carry out habitat assessment Sep Achieved

18 Work with farmers and landowners to achieve and maintain stable or increasing populations for 90% of priority species by 2026, including the UK ‘red-listed’ upland birds — Black Grouse; Curlew; Hen Harrier; Lapwing; Merlin; Skylark; and Yellow Wagtail — for which the National Park is renowned, and those of international importance

18.1 Develop and submit a funding bid to NLHF for a Burnt Orchid conservation project Jun Rescheduled12

18.2 With funding from PTES, run a conference to raise awareness of dormice in mid-Wensleydale. Jul Rescheduled13

8 Issues with volunteers support staff has led to delay. Handbook will be completed by December 2019.

9 Progress affected by absence of key member of staff. However, we will still provide at least 20 task days this year.

10 Put back due to the flooding in Swaledale impacting on staff workload.

11 Put back to November due to long-term sickness absence

12 Funding bid has been delayed due to staff absences. Development work now underway and expect the bid to be submitted by March.

13 PTES National Dormouse Conference is on 15/16 November 2019.

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Actions Appendix 2

18.3 As part of the NUCLNP, develop and submit a bid to NLHF for a delegated conservation grant scheme to support local groups and businesses to take action to conserve nature (p)

Sep Cancelled14

18.4 Set up a Swinden Quarry Natural Environment Fund, working with Tarmac. Sep Rescheduled15

21 Work with moorland managers and other key stakeholders to devise and implement a local approach to end illegal persecution of raptors, including independent and scientifically robust monitoring, and co-ordinated Hen Harrier nest and winter roost site protection

21.1 Establish a local group to take forward implementation of the national action plan produced by the Raptor Persecution Priority Delivery Group

Oct Rescheduled16

22 Work with farmers and landowners to ensure that at least 70% of all woodland is in active management by 2023, including positive management of conifer plantations to increase suitable habitat for red squirrels and black grouse

22.1 Complete the collation of data on the extent and type of woodland in the new area of the National Park (pp) Jun Cancelled17

25 Support the completion of 400 dwellings in a range of tenures, sizes, types and prices, by 2024

25.1 Collate data on, and analyse the reasons for, planning permissions for housing not being implemented Jul Achieved

25.2 Identify potentially viable ‘exception sites’ for affordable housing development in Craven and South Lakeland Sep Rescheduled18

25.3 With district council partners, commission designs for new, modern housing in the National Park to reduce build costs; increase sustainability, and be sympathetic to landscape character

Oct Rescheduled19

25.5 Support District Councils and housing providers to deliver at least 55 new dwellings (pp) Mar Revised20

26 Undertake a 5-year programme of measures to promote the National Park as a place to live for younger, working age households (18-44) to help halt the decline in their numbers

26.1 Work with NYCC to identify the best sites to locate proposed mobile infrastructure for two ‘not spots’ Jun Achieved

26.2 With CDC and SLDC, complete the selection of the winners of ‘Great Place: Lakes and Dales’ competition to design flexible live-work housing for younger people

Jul Achieved

26.3 ‘Re-brand’ local occupancy conditions to make clear they don’t just apply to people who already live in the Jul Revised21

14

The NUCLNP Board has decided not to proceed with this funding bid but to focus instead on the Curlew conservation project (action 18.5). 15

Launch delayed pending completion of wider s.106 Agreement for the approved extension of time to work Swinden Quarry. Now expect to launch in January. 16

Delayed pending sign-off the National Action Plan by the Raptor Persecution Priority Delivery Group (now expected in November). The local group will then meet in January. 17

Despite repeated requests to Forest Enterprise over two years, it has not been possible to secure this data. 18

Final list of sites in Craven will be completed this month. List for South Lakeland is in development but will probably take until February to check all the sites. 19

A specification for this work is currently being finalised and the work will be commissioned by December. 20

Developers unlikely to complete more than 30 new dwellings during 2019/20

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Actions Appendix 2

National Park (p)

26.4 Commission and complete a study into the socio-economic ‘state’ of the National Park Oct Rescheduled22

26.5 Develop proposals for a package of “get-to-know-the-Dales” events for people who might be considering moving into the National Park

Oct Revised23

29 Improve the quality, variety and marketing of the tourism ‘offer’ to encourage more overnight stays and more visitors in the quieter months, so that the value of tourism grows by at least 5% in real terms by 2024

29.1 Launch a ‘food toolkit’ for businesses Jul Rescheduled24

30 Promote the Yorkshire Dales National Park as a leading sustainable tourism destination, including enhancing the locations of 4 National Park Centres to create ‘visitor hubs’ that promote local distinctiveness and assist destination promotion for local activities, accommodation, food and itineraries

30.1 Install electric car charging points at Grassington, Aysgarth and Hawes car parks (p) Jul Rescheduled25

30.2 Establish a new tourism businesses database, and new e-newsletter Sep Achieved

31 Develop and promote new events, festivals and attractions based on the National Park’s special qualities and local distinctiveness so that at least 10% of visitors each year are coming for the first time

31.1 Undertake a survey to find out how many ‘first time’ visitors attend the Cycling World Championships Sep Achieved

31.2 Deliver year 3 of the Moors and Dales Destination Management project, including the annual Cheese Festival and Dark Skies Festival

Oct Achieved

32 By 2023 provide at least 20 apprenticeships that focus on the skills that are essential to maintaining the National Park’s special qualities

32.1 Recruit an apprentice supervisor and 4 new apprentices as part of the Westmorland Dales scheme Sep Achieved

32.2 Support the establishment of an internal Youth Forum Sep Achieved

21

Will be included as part of the new ‘Live in the Dales’ section of our website (see below). 22

Full draft completed. Final report will be published in November 23

We will be delivering a series of web pages in the next couple of months under the banner of ‘Live In The Dales’ which will feature resources and information, and a number of filmed vignettes featuring young couples who have made the decision to live and work in the Park.

24 Put back because of additional workload on EAFRD project (see Action 31.2). Will be launched to businesses at pre-season forum in March 2020.

25 Grassington and Hawes complete. Pod installed at Aysgarth but mains connection delayed until to November 2019 to avoid disruption to visitors during the busy summer period.

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Actions Appendix 2

33 Work with neighbouring authorities to produce a single, updated Local Plan for the whole of the National Park by 2023, which will help achieve the vision and objectives in the National Park Management Plan

33.1 Co-ordinate and publish the NPMP Steering Group’s first annual progress report on the 2019-24 NPMP Jun Achieved

33.2 Design and launch a new NPMP section on the Authority’s website Jul Achieved

33.6 Cooperate on ‘Statements of Common Ground’ with Lancaster City and Richmondshire District Council Mar Revised26

34 Plan and manage the Authority’s work so as to make the most effective use of our resources, including generating sufficient income to maintain expenditure at the same level as 2014/15 in real terms across the extended National Park area

34.1 Implement systems to enable the automatic submission of VAT returns and data Apr Achieved

34.2 Publish the Corporate Plan for 2019/20 Apr Achieved

34.3 Plan and run the 2019 Society of National Parks Staff Conference May Achieved

34.4 Produce a detailed Action Plan to deliver the Authority’s objectives in 2019/20 May Achieved

34.5 Publish a detailed assessment of the Authority’s performance in 2018/19 Jul Achieved

34.6 Plan and run the UK National Parks Conference Sep Achieved

34.7 Review progress in reducing greenhouse gas emissions and develop costed proposals for further action Dec Rescheduled27

34.9 Review the business rates for the Dales Countryside Museum and the Authority’s car parks and toilets Mar Achieved

34.11 Re-contract for the supply of cash investment and insurance brokerage advice Mar Achieved

35 Provide high quality, efficient and effective services and communications to the public and other stakeholders, and so maintain the Customer Service Excellence standard every year

35.1 Re-develop the website to improve user experience (p) Jul Achieved

35.2 Retain the Customer Service Excellence standard following the annual re-accreditation process Aug Rescheduled28

35.3 Carry out a reader survey in the ‘Dales’ newspaper. Sep Achieved

35.4 Review the format, design, layout and content of the ‘Dales’ newspaper Oct Achieved

26

Timetable for Richmondshire District Council’s new Local Plan means not likely to need SoCG until next financial year. 27

Review of progress completed and reported to Members in September. Work is now underway to develop the action plan but it cannot be completed in time for the December NPA. The final Plan will now come to the Authority meeting in March.

28 Put back to the end of October to align with the annual re-accreditation process

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Actions Appendix 2

36 Operate governance arrangements that are fit for purpose, as reported through the Annual Governance Statement and the Annual Governance Report

36.1 Produce the Annual Governance Statement Apr Achieved

36.2 Produce the Statutory Accounts for 2018/19, and achieve an unqualified external audit opinion Jul Achieved

36.3 Work with Defra to design and agree a replacement for the English NPAs’ Financial Grant Memorandum Aug Achieved

36.4 Review and revise the Authority’s suite of procurement documentation, including pro forma contracts Sep Rescheduled29

36.5 Review and revise the Authority’s Financial Regulations Sep Achieved

36.6 Produce an Annual Governance Report to include a review of the Local Code of Corporate Governance Nov Achieved

36.11 Review the Corporate Governance Policy Mar Achieved

37 Ensure that we have personnel policies, procedures, terms and conditions to attract and support the right people with the right skills to deliver the work of the Authority effectively, as evidenced by accreditation under the Investors in People standard

37.1 Develop an action plan to deliver targeted improvements that build on the 2018 IIP assessment Jul Achieved

38 Provide facilities and IT systems that are fit for purpose and support effective delivery of our services, as evidenced by the external auditor’s annual ‘value for money’ opinion and internal audit’s reporting on relevant systems

38.1 Complete the repair and refurbishment of the cottage building at Colvend. May Achieved

38.2 Complete the roll out of new desktop computers (p) Sep Rescheduled30

29

Put back to December 2019 pending recruitment of new Solicitor/Monitoring Officer. 30

Delayed due to issues with migration from Windows 7 to 10. Will now be completed by December.

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New Actions to be added for 2019/20 Appendix 3

1. Submit a detailed bid to Defra for funding to restore those rights of way and footbridges that were damaged by the 2019 Swaledale Floods.

Nov

2. Determine the Authority’s position in relation to the key recommendations from the Glover review of designated landscapes

Dec

3. Identify further proposals for the Authority to support the viability of ‘high nature value’ farm businesses in the National Park in 2020/21.

Dec

4. With district council partners, update the ‘attracting younger people’ action plan, and identify tangible milestones to measure progress.

Feb

5. Represent the English National Park Authorities on the Defra ELMS and future farming working groups. Mar

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ITEM 7

Committee: AUDIT AND REVIEW Date: 5 November 2019 Report: ANNUAL GOVERNANCE REPORT

Purpose of the report

1. To present the Annual Governance Report setting out how the Authority has

complied with the Local Code of Corporate Governance during the past twelve months, including a review of the effectiveness of governance arrangements.

RECOMMENDATION

2. That the Committee comments on the assessment of the Authority’s

governance arrangements and receives this Annual Governance Report. Strategic Planning Framework

3. The information and recommendation contained in this report are consistent with

the Authority’s statutory purposes and its approved strategic planning framework, and in particular, Corporate Plan 2019/20, Objective 26, ‘Operate governance arrangements that are fit for purpose, as reported through the Annual Governance Statement and the Annual Governance Report’.

Background

4. “Governance” is about how local government bodies ensure that they are doing

the right things, in the right way, for the right people, in a timely, inclusive, open, honest and accountable manner.

5. The Authority has based its Local Code of Corporate Governance (‘the Local

Code’) on the framework provided by ‘Delivering Good Governance in Local Government’, published by CIPFA (The Chartered Institute of Public Finance and Accountancy) and SOLACE (the Society of Local Authority Chief Executives); the current edition dates from 2016. Our Local Code is attached at Appendix A.

6. The Local Code is intended to assist authorities in developing an informed

approach to governance that achieves the highest standards in a measured and proportionate way. The overall aim is to ensure:

• that resources are directed in accordance with agreed policy and

according to priorities; • that there is sound and inclusive decision making; and

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• that there is clear accountability for the use of those resources in order to

achieve desired outcomes for service users and communities.

7. This Authority has adopted a cyclical approach to its corporate governance arrangements, illustrated by the diagram at Appendix B. This means that the Local Code is reviewed annually and this report should not be seen in isolation, but in conjunction with other processes which form part of the Authority’s governance arrangements. These include:

• The priorities-setting process; • production of the annual Budget and Corporate Plan which reflect those

priorities; • the regular monitoring and reporting in public of performance against

objectives, targets, and performance indicators; • the annual report of progress in relation to the National Park Management

Plan; • performance appraisal of staff, including the setting of actions

designed to deliver the objectives in the Corporate Plan; • the maintenance of the strategic risk register and the operational risk

register (see separate report on risk management, on the agenda for this meeting);

• the continual refreshment, through review, of the Authority’s suite of policy and strategy documents;

• the training delivered through the year to Members and to officers; • the external accreditation of the Authority’s people management (IIP)

and customer services (Customer Service Excellence) processes; • External and Internal Audit reports ; • Regular monitoring of targets and financial performance by SMT.

Review of Governance Arrangements since last year’s Report. 8. This process includes:

a) Maintenance of the Local Code (see Appendix A) through annual review. This review has identified that a small number of minor changes are required to take account of the work done over the last twelve months to keep the suite of policy and governance documentation up to date. The suggested changes, all within the ‘Core Principle’ schedules of Appendix A, are indicated in italics and highlighted in yellow. b) Monitoring of progress in relation to the actions identified in the April 2017 Annual Governance Statement. Members should note that good progress has been made and there are no matters to highlight for attention; an update is provided at Appendix C.

9. Significant governance-related actions and achievements are

summarised in the Annex to this report.

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10. The following actions are programmed to take place during the current financial year (to 31 March 2020):

• Develop and adopt a new Cultural Heritage Strategy

• Review the lessons learned from initiatives to support restoration of barns

• Review the recreation and tourism framework document ‘Special Qualities, Special Experience’ (Completed)

• Review the lessons learned from the Pennine Trails Partnership project (Completed)

• With the Dales Woodland Forum, carry out preparatory work for a new Dales Woodland Strategy

• Review progress in reducing greenhouse gas emissions (Completed)

• Retain the Customer Service Excellence standard

• Review the Authority’s Communications Strategy

• Produce the Annual Governance Statement (Completed)

• Work with Defra to agree a replacement for the Financial Grant Memorandum (Completed)

• Review and revise Procurement documents, including pro forma contracts

• Review and revise Financial Regulations (Completed)

• Produce an Annual Governance Report including a review of the Local Code of Corporate Governance (Completed)

• Complete review of the structure of the YDNPA Board in light of the extension to the National Park boundary

• Review the Corporate Governance Policy

• Establish a methodology for monitoring and reporting arrangements (including to Defra) in relation to outcomes from the Government’s 25 Year Environment Plan

• Review the Protocol on Member-Officer Relations

• Develop an action plan to deliver targeted improvements that build on the 2018 Investors in People assessment (Completed)

• Review and update the Authority’s Pension Discretions Policy

• Review and update the Equality & Diversity Policy.

Sources of Assurance

11. In corporate governance terms, Authority Members need to look for assurance

that proper governance arrangements are in place. This report is part of that process; the other main sources of assurance are as follows:

• The annual report of the external auditor, Ernst & Young (EY) which was considered by the Authority at its meeting on 30 July 2019. The external auditor issued an unqualified audit opinion on the 2018/19 Statement of Final Accounts.

• The external auditor has also issued a positive audit opinion as a

conclusion to their value-for-money review, which is based on an assessment of whether the

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Authority has proper arrangements for securing financial resilience, and proper arrangements for challenging how economy, efficiency and effectiveness are secured.

• Internal Audit (Veritau) concluded that the Authority has embedded risk management arrangements within the organisation which operate effectively; and that the Authority’s corporate governance arrangements are sound (as reported to this Committee on 9 April 2019).

• In 2014, the Chartered Institute of Public Finance & Accountancy produced

a voluntary code of practice for public bodies “Managing the Risks of Fraud and Corruption”, the principles of which have been adopted in the Authority’s Anti Fraud, Bribery & Corruption Policy. Each year the latter arrangements are reviewed in order to inform this annual report. Accordingly, having considered all the principles, I am satisfied that the organisation has adopted a response that is appropriate for its fraud and corruption risks and is committed to maintaining its vigilance against fraud.

• The three statutory officers of the Authority (the Chief Executive, Chief Finance Officer and Monitoring Officer) have independent legal obligations which include reporting on any matters where the probity or legality of the Authority’s actions or proposed actions is at stake. In regard to the two instances where the Authority was informed of the potential for legal challenge in connection with decisions taken by the Planning Committee (reported in last year’s Annual Governance Report), one of those matters has now resolved. The other matter remains ongoing and has taken up time and resources as anticipated. There are no other matters to report.

Update on Ombudsman complaints

12. The Local Government Ombudsman (the Ombudsman) investigates

complaints of injustice arising from maladministration by councils and other authorities, including National Park Authorities.

13. Each year, the Ombudsman publishes a summary of statistics on complaints

received during the previous twelve months. The summary, in the form of an Annual Letter, is specific to individual authorities and includes the number of enquiries and complaints received, and the decisions made, as well as details of investigations and, where complaints were upheld, how they were remedied.

14. The Annual Letter for 2018/19, published in July this year and which can be

viewed online at www.lgo.org.uk, summarises complaints and enquiries relating to the Authority that were received by the Ombudsman in the year to 31 March 2019. There was only one complaint, which was closed after initial enquiries. We received no recommendations from the Ombudsman during that period.

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Conclusion

15. Other than as detailed in this report, there are no other significant

developments in public sector governance that I need to bring to the attention of the Authority.

Clare Burrows Solicitor/Monitoring Officer 17 October 2019

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ANNEX

ANNUAL GOVERNANCE REPORT: Activity over the past 12 months

Date Activity

November

Risk Management Review (A&R 13/11/18) Terms of Reference, Review of Membership (A&R 13/11/18)

December Pay Award; implementation review (F&R 11/12/18) Review of Income Generation Strategy (Authority, 18/12/18 Review of Designated Landscapes (Glover Review), introduction (18/12/18)

February Draft Budget, incorporating review of financial position (F&R 12/2/19)

March Review of Partnerships (Authority 26/3/19) Local Government Ethical Standards (Authority 26/3/19) Review of National Parks Partnerships (Authority 26/3/19)

April Annual Governance statement (A&R 9/4/19) Internal Auditor’s annual report (A&R 9/4/19) Major project reviews for 2019/20 (A&R 9/4/19) Lessons learnt from the Results Based Agri-Environment Payment Scheme pilot project (A&R 9/4/19)

June Review of Special Qualities, Special experiences (Authority, 25/6/19) Public Rights of Way annual report (Authority 25/6/19)

July Financial Regulations review and update (F&R 30/7/19) External Auditor’s Report (F&R 30/7/19)

September Defra Grant Funding Agreement (F&R 10/9/19 The Prioritisation of National Park Authority Work Programmes for 2020/2021 (Authority 24/9/19)

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APPENDIX A Yorkshire Dales National Park Authority LOCAL CODE OF CORPORATE GOVERNANCE 1. Introduction Every local government body operates through a governance framework that brings together an underlying set of legislative requirements, governance principles and management processes. Corporate governance arrangements encompass all of the policies and procedures that determine and control the way the Authority operates. Good governance leads to good management, good performance, good stewardship of public money, good public engagement and, ultimately, good outcomes from the service provided. The foundation of the Authority’s corporate governance arrangements can be traced directly to the “Good Governance Standard for Public Services” published by the Independent Commission on Good Governance in Public Services in January 2005, and subsequently refined for local government through a framework promulgated in 2007 by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE). In March 2008, the Authority adopted its own governance principles, customised to its needs and circumstances from this framework. Since then, local government has been subject to continued reform to improve local accountability and engagement, and in 2016 CIPFA and SOLACE produced a revised framework “Delivering Good Governance“. This framework defines the principles that should underpin the governance of each local government body, and provides a structure which should assist individual authorities with their governance arrangements. The Core Principles are:

• A: Behaving with integrity, demonstrating strong commitment to ethical values , and respecting the rule of law;

• B: Ensuring openness and comprehensive stakeholder engagement;

• C: Defining outcomes in terms of sustainable economic, social and

environmental benefits;

• D: Determining the interventions necessary to optimise the achievement of the intended outcomes;

• E: Developing the entity’s capacity, including the capability of its leadership

and the individuals within it;

• F: Managing risk and performance through robust internal control and strong public financial management;

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• G: Implementing good practice in transparency, reporting and audit to deliver effective accountability.

In addition to the overarching requirements for acting in the public interest in Core Principles A and B, achieving good governance also requires a commitment to Core Principles C to G. In order to translate these principles into practice, the Authority has adopted this Local Code of Corporate Governance. 2. The Authority’s Values The Authority has adopted six Values, which apply to all its work:

• Improvement: We will continually strive to improve our performance in delivering National Park purposes and welcome feedback to help us do this.

• Accountability: We will explain and take responsibility for our decisions and actions.

• Commitment: We will do what we say we will do.

• Integrity: Our relationships with the public, partners and each other are built on

honesty, transparency, equality, impartiality and consistency. We welcome and respect diversity and demonstrate equality in working relationships.

• Involvement: We are open and approachable, and are proactive in encouraging

wider and diverse participation in achieving our statutory purposes.

• Valuing People: We value the people who work for us and will ensure that they are equipped and empowered to provide professional services to the public.

3. Responsibilities All Members of the Authority are collectively and individually responsible for good governance; Members are the governors. Primary responsibility rests with the Chair of the Authority who has a key role in ensuring there is a culture within the organisation which reflects its values. The Chair is supported in this role by all Members, but in particular the Deputy Chair, the Committee Chairs, and the Member Champion for Corporate Management. The Audit & Review Committee is responsible for advising the Authority on its corporate governance policies and agenda, and ensuring the implementation and management of the Authority’s agreed policies in this area. It receives an annual corporate governance report from the Monitoring Officer. The Standards Committee has an important role in the ethical governance of the Authority since it deals with complaints of breach of the Code of Conduct by a Member, and also with applications by Members for dispensations to speak, or to speak and vote, when they have a disclosable pecuniary interest. The Committee has the power to make recommendations to the Authority on issues of Member conduct, where these arise out of its consideration of complaints or applications for dispensations.

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At officer level, good governance is first and foremost the responsibility of the Authority’s three “Statutory Officers”, namely the Chief Executive, the Treasurer, and the Monitoring Officer. Amongst their responsibilities is leadership in promoting a culture and practice of good governance throughout the staff of the Authority, so that all employees understand and promote the value. The lead officer on governance issues is the Monitoring Officer who is responsible in particular for:

• monitoring the operation of this Code, ensuring that it remains up to date, and that any significant developments in public sector governance are brought to the attention of the Authority and, if appropriate, that recommendations for action are considered by Members;

• ensuring that the Authority’s structures, policies and procedures are kept under review in support of the Local Code of Corporate Governance, which is in turn reviewed annually by the Senior Management Team and by the Audit & Review Committee; and

• drawing any concerns to the attention of the other statutory officers and, if necessary, to Members.

The Authority’s internal and external auditors also assess the Authority’s governance arrangements, and their work provides an important part of the assurance to Members that governance arrangements are sound. Details of these and other assurance arrangements are published annually by the Authority as part of an Annual Governance Statement which accompanies the Statement of Financial Accounts. This Local Code of Governance has been produced to show how the Authority will implement the core principles and sub principles of the CIPFA/ SOLACE framework and to demonstrate full compliance with it.

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Local Code of Corporate Governance; Good Governance means …

Core Principle A: Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law

Supporting Principles What Evidence/Assurance is in place at YDNPA Behaving with integrity

Ensuring Members and Officers behave with integrity and lead a culture where acting in the public interest is visibly demonstrated thereby protecting the reputation of the Authority. Ensuring Members and Officers take a lead in establishing specific standard principles or values for the organisation (based on seven Nolan Principles). Leading by example and using the principles as a framework for all actions and decisions Demonstrating, communicating and embedding the standard operating principles through appropriate policies and processes, which are regularly reviewed to ensure effectiveness

• Mission and Core Values Statement

• Member Code of Conduct

• Officer Code of Conduct

• Member Employee Protocol

• Scheme of Delegation, and records of delegated decisions

• Standing Orders

• Financial Regulations

• Local Code of Corporate Governance

• Role of Audit & Review Committee and Standards Committee

• Arrangements for dealing with complaints about Member conduct

• Appointment of Independent Persons to Standards Committee

• Roles and Responsibilities of Members

• Job Descriptions for Chairman and Members

• Member Champion Protocol

• Staff Appraisal process linked to Core Values

Demonstrating strong commitment to ethical values

Seeking to establish, monitor and maintain the Authority’s ethical standards and performance Underpinning personal behaviour with ethical values and ensuring they permeate all aspects of the Authority’s culture and operation Developing and maintaining robust policies and procedures which place emphasis on agreed ethical values Ensuring that external providers of services on behalf of the Authority act with the integrity and ethical standards expected by the Authority

• Equality and Diversity Policy; the Equality Working Group

• Annual report on Equality Compliance to SMT or Audit & Review Committee as appropriate

• HR policies in place to maintain ethical values and deal with issues concerning conduct

• Complaints procedure

• Anti Fraud and Corruption Policy

• Confidential Reporting procedure

• Role of three Statutory Officers

• Role of Monitoring Officer to report on illegality

• Role of Chief Financial Officer to report on unlawful expenditure

• Appointment of Internal and External Auditors and reporting arrangements in place to Audit and Review Committee with statements in annual reports to the Authority

• Annual Governance Report and Annual Governance Statement reporting on effectiveness and significant issues

Respecting the rule of law

Ensuring Members and Officers demonstrate strong commitment to the rule of law Creating the conditions for the three Statutory Officers and Members to fulfil their regulatory responsibilities Striving to optimise the use of full powers available for the benefit of stakeholders Dealing effectively with breaches of legal or regulatory provisions Ensuring corruption and misuse of powers are dealt with effectively

• Register of Members Interests, updated regularly and published on the YDNPA website

• Register of Officer Interests

• Registration of Related Party Transactions • Declarations of lobbying and declarations of interests at

committee meetings • Transparency about business dealings between the Authority,

Members and senior Staff

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Core Principle B: Ensuring openness and comprehensive stakeholder engagement Supporting Principles What Evidence/Assurance is in place at YDNPA

Openness/ensuring an open culture

Ensuring an open culture through demonstrating, documenting and communicating our commitment to openness Making decisions that are open and transparent; presumption against confidentiality without justification Providing clear reasoning and evidence relating to actions and decisions, and ensuring the impact and consequences are clear Using formal and informal consultation and engagement to determine the most appropriate courses of action

• Authority and Committee meetings held in public; Authority and Planning Committee meetings are recorded

• Publication of agendas , reports and minutes for the Authority and its Committees, plus audio recordings where appropriate

• Reports include legal, financial, human resources (HR),risk and equality implications where necessary

• Opportunities for public speaking at committee meetings

• Access to Information arrangements

• Agreed actions to comply with the Openness of Local Government Regulations 2014

• Transparency Code and the General Data Protection legislation(GDPR and Data Protection Act 2018), and arrangements for the information to be available on the website

• Adoption of the ICO’s standard Publication Scheme

Engaging comprehensively with institutional stakeholders

Ensuring that the purpose, objectives and intended outcomes for each stakeholder relationship are clear so that outcomes are achieved successfully and sustainably Developing formal and informal partnerships to allow for resources to be used more efficiently and outcomes achieved more effectively Ensuring that partnerships are based on trust, a shared commitment to change, and a culture that promotes and accepts challenge among partners; the added value of partnership is explicit

• Continue to work with partners to deliver outcomes being clear about what YDNPA is delivering and what our partners are contributing through formal and informal consultation for example NPMP steering group, Local plan consultations, Stakeholder consultations, Parish Forums

• Yorkshire Dales Local Access Forum

• Yorkshire Dales Biodiversity Forum

• Review of Partnerships – a review is undertaken every two years (latest review March 2019)

Effective engagement with individual citizens and service users

Establishing a clear policy on consultation with stakeholders to ensure service provision contributes to intended outcomes Ensuring communication methods are effective in relation to community engagement Encouraging, collecting and evaluating the views of stakeholders including reference to future needs Implementing effective feedback mechanisms and ensuring inclusivity of all feedback Balancing feedback from more active stakeholder groups with other groups to ensure inclusivity Taking account of impact of decisions on future generations of taxpayers/service users

• Published strategies, codes and protocols

• Procedures for regular review of strategies, codes and protocols

• Agenda reports and minutes; codes and protocols published on Authority website

• Comprehensive and accessible YDNPA website, publications

• Communications Strategy

• Media Procedure and Protocol

• Dales Newspaper for residents

• The Visitor

• Press releases

• Use of Social Media and websites

• Performance and Service reviews reported to Audit and Review Committee

• State of the Park Report: information updated and published annually on the Authority’s website as part of monitoring progress towards achieving NPMP objectives

• Annual monitoring report on the impact of the Yorkshire Dales Local Plan

• Annual Corporate Plan: progress regularly reviewed by the Senior Management Team (SMT) and reported twice a year to the Audit & Review Committee.

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• National park performance indicators for benchmarking • Satisfaction surveys are carried out in relation to the main

‘promoting understanding’ services (NPCs, website) annually, and in relation to the planning service every two years

• In 2010, the Authority achieved the Government’s Customer Service Excellence (CSE) Standard and this has been retained every year since; next reassessment due Autumn 2019

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Core Principle C: Defining outcomes in terms of sustainable economic social and environmental benefits

Supporting Principles What Evidence/Assurance is in place at YDNPA

Defining Outcomes

Having a clear vision as an agreed formal statement of the Authority’s purpose and intended outcomes Specifying the intended impact on stakeholders Delivering defined outcomes on a sustainable basis within resources Identifying and managing risks to the achievement of outcomes Managing service users expectations with regard to determining priorities Sustainable economic, social and environmental benefits Consider and balance the combined economic social and environmental benefits Taking a long term view with regard to decision making, taking account of risk and acting transparently in the face of conflict of interest Determining the wider public interest when balancing conflicting interests, through consultation where possible Ensuring fair access to services

• The Authority’s role defined by the two statutory purposes and the Mission Statement

• The National Park Management Plan: developed together with partner organisations - sets 20 year vision and 5 year objectives. The current NPMP was launched in December 2018, and the objectives have been integrated into the Corporate Plan for 2019/20.

• The Authority sets its own objectives in its Corporate Plan, many of which will be taken directly from the Management Plan. A detailed review of the Authority’s priorities is carried out every 3 years, with a light touch review annually

• The annual Corporate (Action) Plan refines the objectives into specific activity each year

• The Local Plan (15 year period) has been published following extensive public consultation. The approach and options for developing a new Local Development Scheme were reviewed by the Authority in December 2018.

• Defined quality measures, and information on performance in relation to them

• Risk Management Policy Strategic Risk Register biannual reviews of operational risk by SMT, annual report to Members in relation to strategic risks

• In 2019 External Audit concluded that the Authority had put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources.

• The most recent Customer Services Excellence report (November 2018) confirmed that the Authority has systems in place to monitor the outcomes of its services and to measure the degree of satisfaction that customers have with them.

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Core Principle D. Determining the interventions necessary to optimise the achievements of the intended outcomes

Supporting Principles What Evidence/Assurance is in place at YDNPA Determining Interventions Ensuring decision makers receive objective and rigorous analysis of a variety of options indicating associated risks, thereby ensuring best value is achieved Considering feedback from citizens and service users when making service improvements in order to prioritise competing resource demands Planning Interventions Establishing and maintaining robust planning and control cycles for plans, priorities and targets Engaging with stakeholders in relation to planning and delivery; considering and monitoring risks facing each partner when working collaboratively, including shared risks Ensuring arrangements are flexible and adaptable to changing circumstances Establishing key performance indicators; and ensuring capacity exists to generate information needed to review service quality regularly Prepare budgets in accordance with objectives, strategies and the medium term financial plan Inform medium and long term resource planning through a sustainable funding strategy Optimising achievement of intended outcomes Ensuring the budget process is all-inclusive of full cost of operations over medium and longer term Ensuring medium term financial strategy is responsive to external circumstances to optimise resource usage/integrates and balances resource constraints Ensuring the achievement of “social value” through service planning

• Explicit statement of the criteria, rationale and relevant considerations on which decisions are based

• National Park purposes considered for all decisions

• National and local planning policies (Local Plan / Local Development Framework) for planning decisions

• All Committee Reports address conformity of the subject matter with the Authority’s strategic planning framework

• Guidance on Good Decision Making

• Reporting cycles for Corporate Plan objectives, priorities, financial budget, corporate governance and risk management in place

• State of the Park, visitor, and residents survey (most recently completed December 2018)

• Risk Management Policy

• Strategic Risk Register biannual reviews of operational risk by SMT, annual report to Members in relation to strategic risks

• All key financial systems are reviewed cyclically by Internal Audit

• External Audit relies in part on the work of Internal Audit and augments this with additional testing and review work where a significant risk is perceived. This work covers transactional activity for which the Authority is an accountable body

• Regular review of assets and property strategy

• Annual use of resources assessment undertaken by External Audit

• Regular budget monitoring reports to SMT and Finance & Resources Committee

• No separate capital programme; regular review of assets and property strategy

• Budgeting processes examined each year by Internal and External Audit

• Reserves maintained in line with guidance from the Audit Commission (Contingency Reserve) and with CIPFA capital accounting guidelines

• Medium Term Financial Plan

• Service plans

• Annual budget and quarterly management monitoring plans

• Annual Statement of Accounts

• Audit reports (Internal and External)

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Core Principle E. Developing the Authority’s capacity including the capability of its leadership and the individuals within it


Developing capacity Reviewing operations and resources to ensure continued effectiveness Improving allocation of resources so that defined outcomes are achieved effectively and efficiently Recognising the benefits of partnership working where added value can be achieved Developing and maintaining an effective workforce plan to enhance allocation of resources Developing capability of leadership Developing protocols to ensure that shared understanding of roles and responsibilities is maintained Publishing a statement that specifies the types of decisions Ensuring Chairman and CEO have clearly defined roles Developing capabilities of Members and Senior Management by giving access to induction and ongoing training; Members and Officers have appropriate skills and support to fulfil roles and this is kept updated; development through shared learning and learning from identified weaknesses Ensure structures in place to encourage public participation in development Taking steps to ensure leadership’s effectiveness through peer reviews and appraisals Holding staff to account through performance reviews Ensuring arrangements in place to maintain physical and mental wellbeing of Officers

• People Management Strategy

• Staff and Management restructure approved

• Review of Pay Policy

• Cyclical review of HR policies

• IT Strategy

• Internal and external audit of processes

• NPMP review cycle

• Corporate Plan and Action Plan review cycle

• Setting priorities linked to Appraisal process

• Budgetary control reported to SMT

• Reports to Finance & Resources Committee including long term budget setting

• YDMT Memorandum of Understanding

• Biennial review of Partnerships

• Income Generation Strategy – quarterly progress updates to F&R committee; reviewed December 2018

• Training and Development programmes for Members and Officers

• Authority Days for officers and Members (temporarily replaced by Conference work in 2019)

• Annual All Staff Meetings

• Role/Protocols of Statutory Officers

• Clear Members Roles and Responsibilities

• Guidance on the Member Champion Initiative

• Member Officer Protocol

• Scheme of Delegation and Standing Orders

• Delegated decisions published through Open Data

• Role of Chairman Job Descriptions

• Member and Officer Appraisals; including CEO

• Peer reviews for senior management

• IIP accreditation

• Annual Customer Service Excellence accreditation

• Access to Occupational Health scheme

• Employees Assistance Programme in place

• Active Health & Safety Working Group

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Core Principle F. Managing risk and performance through robust internal control and strong public financial management


Managing risk Ensuring risk management is an integral part of all decision making Implementing robust and integrated risk management Ensuring individual responsibilities for managing risk are clearly allocated Managing performance Monitoring service delivery effectively Making decisions based on clear and relevant objective analysis including risks Encouraging effective and constructive challenge and debate on policies and objectives Providing Members and SMT with regular reports on service delivery Ensuring consistency between specification stages and post implementation reporting Robust internal control Aligning risk management strategy and policies Evaluation and monitoring risk management Ensuring counter-fraud and anti-corruption measures in place Ensuring additional assurance through effective internal audit Ensuring audit committee independent of the executive Managing data Ensuring effective arrangements for safe collection and use of data including sharing of personal data Effective arrangements for sharing data with other bodies Regularly reviewing and auditing quality and accuracy of data used in decision making and performance monitoring Strong public financial management Well developed financial management to support long term and short term financial and

• The Authority has adopted a two tiered approach to risk management: Strategic Risk Register; Operational Risk Register

• Risk Management Policy; A&R Committee reviews risk management on an annual basis.

• The Risk Management Policy and Strategic Register are reviewed by SMT; views of external audit and internal audit are included

• SMT undertake scheduled reviews of risks and Directors maintain logs, as appropriate, within their own Directorates

• SMT undertakes biannual reviews of operational risk, and there is an annual report to Members in relation to strategic risks

• Internal Audit: external provision by Veritau ltd

• Complaints procedure

• The Authority’s performance in delivering its services is measured through a range of corporate objectives set out in the annual Corporate Plan. Progress is regularly reviewed by the Senior Management Team (SMT) and reported twice a year to the Audit & Review Committee. Performance Improvement reviews are carried out by small member/officer teams including the relevant Member Champion and a member of the Audit & Review Committee ensuring there is Member input in the process. The Authority maintains its accreditation under the Government’s Customer Service Excellence (CSE) Standard

• Complaints that Members have breached the Code of Conduct are made to the Monitoring Officer. Independent Persons have been appointed to advise in relation to such complaints in accordance with a Protocol which has been reviewed

• State of the Park information is updated and published annually on the Authority’s website as part of the information that monitors progress towards achieving all the objectives in the NPMP. There is also an annual monitoring report on the impact of the Yorkshire Dales Local Plan

• Data Protection Policy; internal audit on DP compliance carried out every three years

• Nominated Data Protection Officer and Senior Information Risk Owner

• Access to Information Statement

• Data Sharing arrangements included in Data Protection Policy

• Regular data protection briefing notes are issued to staff

• Anti Fraud, Bribery & Corruption policy

• Confidential Reporting Policy

• Compliance with Payment Card Industry Standard

• Money laundering advice

• Regular budget monitoring reports to SMT, and Finance & Resources Committee

• No separate capital programme

• Regular review of assets and property strategy

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operational performance Ensuring financial management is integrated at all levels of planning and control

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Core Principle G. Implementing good practice in transparency, reporting and audit to deliver effective accountability


Good Practice in Transparency Writing and publishing reports in a balanced, understandable and easily accessed style Striking a balance with regard to the amount of information provided Good Practice in Reporting Reporting at least annually on performance, value for money and stewardship of resources in a clear, timely way Ensuring members and officers take 'ownership' of the reported results Ensuring robust arrangements for assessing the principles in this framework are applied, including an action plan for improvement Ensure this framework is applied to joint working/shared services Ensuring that performance information accompanying the financial statements is prepared on a consistent and timely basis and allows for comparison with similar organisations Assurance and accountability Ensuring that recommendations for corrective action made by external audit are acted on Ensuring an effective internal audit service is in place Welcoming peer challenge and regulatory inspections and acting on recommendations Gaining assurance on risks delivered through third parties and ensuring that this is evidenced in the annual governance statement When working in partnership, ensuring arrangements for accountability are clear.

• All public committee business published on website

• Freedom of Information Act/Environmental Information Regulations compliance

• Publication Scheme

• Open Government requirements (including delegations),publishing expenditure / contract details

• A&R/F&R committee

• Performance Indicators

• Action plan 6-monthly updates on progress

• Annual review of performance across all aspects of work

• Internal and external audit

• Arrangements for end of year A&R Governance Statement

• External Audit (Ernst &Young)

• Arrangements in place with Internal Audit (Veritau); regular audits undertaken and reported to Audit & Review Committee; recommendations actioned

• The Authority has adopted clear criteria as to when partnership working is appropriate; a biennial review of Partnerships is reported to the Authority

• Review of governance arrangements undertaken by Monitoring Officer; bi-annual report to SMT

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APPENDIX B

Corporate Governance: Annual cycle of planning, reviewing and learning

Planning Reviewing Budget Setting

April Corporate Plan Major project review results published to Audit & Review

Proposed programme of reviews confirmed

May Action Plan published End of year performance Year end financial outturn to F&R, reports prepared identifying carry-forward budgets Submission of “Family” PIs

June NPMP end-of-year report End-of-year report on Corporate Plan Objectives

July ToR for performance Comprehensive end of year Finalisation of annual accounts to reviews to Audit & performance report to Audit F and R Review & Review

August

September Authority reviews 3-month financial progress report priorities to F&R with preliminary income projections

October SMT/section heads 6-month progress report on discuss progress and Objectives and Actions looking ahead from Section Heads to SMT

November NPMP Steering Group 6-month progress report to SMT budget discussions meet re programme A&R Draft budget to F & R. implementation

December Objectives for year 6-month financial progress report ahead to Authority to F&R Final approval of budget for next year.

January

February Section heads draft Draft budget to F&R Action Plan

March Annual appraisals Setting individual objectives Final budget approved by and targets, and reviewing Authority performance

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APPENDIX C

Update on matters identified during the preparation of the 2018/19 Annual Governance Statement

Issue Update

Review of Protected Landscapes - Glover Review

The review is significant and has considered how National Parks and AONB meet the needs in the 21st century, how access can be improved and how those who live and work in protected landscapes can be better supported. The review has also considered the financing and governance of National Parks and AONBs.

The Glover Report was published in September and contains a number of far reaching recommendations which are likely to require significant consideration. That process is being undertaken by a number of organisations and critically, Defra. The YDNPA will discuss a paper at a meeting of the Policy Development Forum (PDF) in November and a paper may come to the full Authority in December.

Review of membership of the Authority

The review has commenced, it has been accepted that the review will run through to 2019 -2020 to enable it to take account of the emerging conclusions coming from Glover.

This issue is being examined by a small panel of Members/Officers which will report back to the Audit & Review Committee. Three meetings have taken place but the work was put ‘on hold’ pending the results of the Glover Review. There will now be a further meeting of the group before the end of this calendar year to consider Glover’s comments and recommendations on National Park governance.

Local Plan

Following extension of the National Park boundary in 2016, the Authority inherited a number of Development Plans for different parts of the new area of the National Park. In December 2018, the Authority agreed in principle to move towards a single Local Plan for the whole of the National Park (2023-2040), and approved additional staff resources to support that process. A detailed timetable for completing the production of a new Local Plan by 2023 was approved at the Authority meeting on 26 March.

The Annual Monitoring report of progress against planning policy was published on the Authority website in June and reported to the Audit & Review Committee in July. Monitoring of residential permissions, housing starts and housing completions, was completed in the extension areas during September and will now inform the wider housing supply situation. An additional part time employee has now been appointed to work on the Local Plan. A project plan and timetable (the Local Development Scheme) has been published on the Authority’s website. Evidence reports analysing the state of the local economy, population projections for the National Park and future housing requirements, are being prepared by an external consultancy and will be published later this year. An initial presentation of findings was made to Members and Officers at the Policy Development Forum in September 2019. The first formal stage in the

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preparation of the new Local Plan will take place in December. Stakeholders and the wider public will be invited to comment on the issues that the new Local plan should address.

Reviews of corporate documents (strategies and policies), in line with the 5 year cycle of planned reviews; dates relate to Corporate Plan actions, 2019/20.

(i) Special Qualities, Special Experiences (June 2019)

(ii) Financial Regulations (September 2019)

(iii) Enforcement Policy (November 2019)

(iv) Cultural Heritage Strategy (December 2019)

(v) Equality and Diversity Policy (February 2020)

(vi) Corporate Governance Policy (March 2020)

(vii) Protocol on Member-Officer Relations (March 2020)

(viii) Examination of Politically Restricted Posts

(ix) New Defra Financial / Governance arrangements (Aug 2019)

(x) New Defra Performance Monitoring arrangements for 25 Year Plan Outcomes (March 2019)

(i) completed June 2019

(ii) completed July 2019

(iii) commenced – to be presented for member approval in December 2019

(iv) commenced – to be presented for Member approval in December 2019.

(v) not yet commenced

(vi) not yet commenced

(vii) not yet commenced

(viii) commenced

(ix) completed Sept 2019

(x) This work has not been progressed by Government Officials due to other more pressing matters.

There are no fundamental or significant actions, arising from Internal Audits completed in February / March 2019, to report on.

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ITEM 8

Committee: AUDIT AND REVIEW Date: 5 November 2019 Report: ANNUAL RISK MANAGEMENT REVIEW Purpose of report 1. To provide Members with the opportunity to review the effectiveness of the

arrangements for risk management, in line with the Authority’s Risk Management Policy.

RECOMMENDATION 2. That Members agree that the Strategic Risk Register contains all identifiable higher

level risks which the Audit & Review Committee requires to be monitored.

Strategic Planning Framework 3. The information and recommendation contained in this report are consistent with the

Authority’s statutory purposes and its approved strategic planning framework, including Objective 36 of the Corporate Action Plan for 2019/20, ‘Operate governance arrangements that are fit for purpose’.

Background 4. The Authority’s Risk management Policy, last revised in November 2018, sets our

approach to risk management and (via the Risk Registers) provides a coherent picture of all the corporate processes which help to make sure risks are managed to acceptable levels. The Policy applies a tiered approach involving:

• a Strategic Risk Register , to demonstrate to the members of this committee that there is an active process of identifying and managing truly strategic risks;

• an Operational Risk Register, designed to hold the details about how each risk and its components are controlled. This also demonstrates to other audiences that we have a detailed but proportionate approach to risk. These ‘other audiences’ include the external and internal auditors, UNISON and our insurers.

Risk Management Register; Annual Review 5. The Risk Management Policy (paragraphs 22 and 26) states that this Committee will

receive an annual report on risk management, to enable it to establish that the

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arrangements for risk management within the organisation remain appropriate and that the main risks facing the organisation are properly controlled. The chief sources of evidence that would assist in reaching such a conclusion are noted below.

6. The Authority’s most recent Annual Governance Statement identified a number of

areas to be addressed in 2019/20 (Appendix 1). Whilst this makes no explicit mention of risk, it is clear that failing to complete these actions to a satisfactory level will present varying levels of risk.

7. The External Auditor’s Opinion, covering all aspects of the Authority’s work on its

annual report and accounts (for the auditing cycle examining the accounts for the year ended 31 March 2019), concluded with an unqualified opinion on the way in which the Authority conducts and controls its activities. No material risks were identified.

8. A summary of the Internal Audits completed in 2019 by our contracted-out internal

auditors was presented to this committee on 9 April 2019. None of the reports identified significant weaknesses, and the ‘level of assurance’ over the controls examined remains good. Whilst these internal audit reports recommended some improvements to the systems operated (which have now been implemented), there were no findings that added to either the Strategic or Operational Risk Registers. The overall opinion on the adequacy of the controls operated by the Authority is that they provided High Assurance.

9. The Strategic Risk Register is attached at Appendix 2, and has been reviewed by the

Senior Management Team (SMT), most recently in October 2019, to ensure that it remains valid. No new strategic risks have been identified in the past year.

10. The Operational Risk Register is attached at Appendix 3. Again, this has been

updated following its review by the SMT in October 2019, and, whilst no new classes of risk have been identified, a number of additions or changes have been made to record particular risk management processes now underway.

Conclusion 11. Risk management processes remain embedded within the Authority’s work:

• The Senior Management Team has undertaken it’s periodic reviews of the Operational and Strategic Risk Registers (in line with the Risk Management Policy);

• Scheduled meetings are taking place with our insurance advisers, to make sure that we identify new risks as they emerge.

Richard Burnett Director of Corporate Services 17 October 2019

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APPENDIX 1 Significant Governance Issues (Extract from the Authority’s Annual Governance Statement, published 30 July 2019) Issue Explanation and current position Review of Protected Landscapes - Glover Review

The Glover review is expected to report in autumn 2019. The review will cover: (i) our Statutory Purposes and how well they are being met; (ii) the alignment of these Purposes with the Government’s 25 year plan for the environment; (iii) the case for the extension / creation of designated areas; (iv) improving governance, and how that governance interacts with other national assets; (v) the financing of National Parks and AONBs; (vi) enhancing the environment and biodiversity; (vii) how to build on the existing ‘8 Point Plan for National Parks’; (viii) how well Protected Landscapes support local communities.

Review of membership of the Authority

The review has commenced, it has been accepted that the review will run through to 2019 -2020 to enable it to take account of the conclusions of the Glover review.

Local Plan Following the extension of the National Park boundary in 2016, the Authority inherited a number of Development Plans for different parts of the new area of the Park. In December 2018, the Authority agreed in principle to move towards a single Local Plan for the whole of the Park. A detailed timetable for completing the production of a new Local Plan by 2023 was approved by the Authority on 26 March 2019, and we are now working to deliver that process.

Reviews of corporate documents (strategies and policies), in line with the 5 year cycle of planned reviews.

Completed:

• Special Qualities, Special Experiences

• Financial Regulations

• New Defra Financial and Legal Governance arrangements

In hand:

• Enforcement Policy (November 2019)

• Cultural Heritage Strategy (December 2019)

• Equality and Diversity Policy (February 2020)

• Corporate Governance Policy (March 2020)

• Protocol on Member-Officer Relations (March 2020)

• Examination of Politically Restricted Posts

• New Defra Performance Monitoring arrangements for 25 Year Plan Outcomes

.

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APPENDIX 2 Strategic Risk Register This register records the ‘higher level’ or strategic risks facing the Authority and identifies who is responsible for managing them. Full details of how each risk is managed are included in the Operational Risk Register. Category of Risk Description Risk

Assessment (see explanation, below table)

Owner Entry on Operational Risk Register

Strategic & Commercial risks

1. Reputation damage Damage that undermines relationships with key partners, sponsors or the workforce, to the extent that the Authority’s objectives become undeliverable.

Severe Members / CEO

1

2. Partnerships Failure to achieve objectives in an efficient / effective / economic manner or to identify joint liabilities.

Material Members / CEO

2

Economic & Financial risks

3. Failure of Defra Grant Further significant cut (>5%) in Defra core grant, necessitating additional operational cut-backs.

Severe CEO/ SMT

3

4. Other Funding Risks Failure (i.e. absence or shortfall) of External ‘Grant’ Funding; Ineffective partnership with YDMT and FLD; Bad Debts; Shortfalls in earned income.

Severe CEO/ SMT

3

Organisational management & human factors

5. Loss of Key Staff Inability to deliver corporate objectives or to maintain services at agreed / accepted levels.

Material CEO/ SMT

14

6. Health & Safety Risk to staff, Members, volunteers and the public where proper procedures are not followed.

Material CEO/ Directors/ Section Heads

16

Political and societal factors

7. Public liability Professional advice (e.g. planning, agricultural-related) given proves to be inadequate, leaving the Authority with significant exposure. Also, public liability in relation to works undertaken by the Authority that provides services or recreational opportunities.

Manageable MO/ DoCS

10

Technical and operational risks

8. Loss of IT system and records

Arising through either failure of communication network, or systematic failure of server environment, or of the maintenance capacity of either; leads to inability of Authority to operate. Data Protection failure.

Severe HoFR/ Snr IT Officer

24

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Explanation of Risk Assessment and Evaluation All identified risks are scored against the likelihood of their materialising and for their impact if they did materialise. The following three tables describe this scoring system: Table 1 identifies the ‘likelihood’ criteria, Table 2 the ‘impact’ characteristics, and Table 3 combines these two factors to give an overall classification ranging from ‘Very Severe’ to ‘Manageable’. Table 1

Risk Likelihood Ratings

Probability Criteria

Small 0-5% (extremely unlikely to occur)

Low 6-20% (unlikely but not impossible to occur)

Medium 21-50% (fairly likely to occur)

High 51-80% (more likely to occur than not)

Very High >80% (almost certain to occur) Table 2

Risk Impact Ratings

Probability Characteristics

Small Minimal loss, delay, inconvenience or interruption. Easily and quickly resolved

Low Minor loss, delay, inconvenience or interruption. Short to medium term effect

Medium Significant waste of time and resources. Impact on operational efficiency, output and quality. Medium term effect which may be expensive to recover

High Major impact on costs and objectives. Serious impact on output and/or quality and reputation. Medium to long-term effect and expensive to recover.

Very High Critical impact on the achievement of objectives and overall performance. Huge impact on costs and/or reputation. Very difficult and possibly long-term to recover

Table 3

Impact

VH

H

Very Severe Risk

M

Severe Risk

L

Material Risk

S

Manageable risk

S L M H VH Likelihood

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Table 3 identifies four classes of risk:

• Very Severe Risks are those which cause most concern: their materialisation would have a potentially disastrous impact on the Authority’s reputation or business continuity; immediate and comprehensive action would be required.

• Severe Risks are also of significant concern, and should be covered by contingency plans: their materialisation would be severe but not disastrous, and some immediate action would be required, along with the development of an appropriate action plan.

• Material Risks have consequences that are not severe and which can be managed by contingency plans and more detailed action plans which can be developed later. But such risks still need regular monitoring.

• Manageable Risks are those that are inherent in most activities; the consequences of their materialising are generally not important enough to affect the whole business, and they can be managed during delivery. The status of such risks will be reviewed periodically.

The scoring of particular risks is the responsibility of SMT, subject to any advice from the Audit & Review Committee. In determining the likelihood of a risk occurring, all factors, including existing control mechanisms, will be taken into account.

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APPENDIX 3 Operational Risk Register Reviewed by SMT, 16 October 2019 The register lists all identified risks facing the Authority, whether strategic (key) risks and their components or the much larger population of lesser risks that we deal with on a day to day basis. It also describes the counter measures (taken or planned) for dealing with these risks. Notes:

Proximity = time frame for risk, e.g. long term, on-going, specific milestone Date reviewed = when risk owner last reviewed this Date actioned = when actions were taken to mitigate risk

RISK COUNTER MEASURES

No Risk description Risk owner

Risk pre-counter measures (see explanation, below table)

Taken (including current controls) Planned Risk post counter measures (see explanation, below table)

Proximity

Political/ Strategic / Commercial

1 Reputation damage. Identified matters include: Members failing to take collective ownership for decisions the NPA makes, and public comments made by Members that run counter to Authority policy; failure to develop or implement appropriate policies] Use of logo by businesses:

Members (esp. Chair) CEO

Severe Declarations / registers of Personal Interests (including officers); employment clauses; statutory Officers; training and recruitment procedures; Member Code of Conduct; Member Officer Protocol , Duties and Responsibilities of Members, job descriptions for Member Champions and Chairs, complaints procedure; Standards Committee; Officer Code of Conduct; Communications Team; corporate Media Procedure & Protocol; Equality Awareness Training; Customer Service Excellence Award . Annual related parties transaction questionnaire. Planning Code of Good Practice. Monitoring of media activity (monthly SMT review) Managed process for Logo: terms and

Review the structure of the YDNPA Board in the light of the extension to the National Park Boundary, and the conclusions of the Glover review of National Parks (Dec) Detailed timetable for review and then completing the production by 2023 of a new Local Plan (covering the entire National Park) agreed in March 2019 Reviews of Protocol on Member – Officer relations and designation of Politically Restricted Posts (both March 2020)

Manageable Long term specific

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Proximity

‘association’ problem if used inappropriately Involvement in national initiatives (e.g. National Parks Partnership) Reputational risk associated with illegal release (including by hackers etc.) of personal information

conditions state that user rights can be withdrawn. Participation in NPP ‘guidance’ process via NPOs and Chairs meetings; Director of Corporate Services now NPP Board Member Data protection measures in place (with active review process), also CPI Compliance and Data Protection Policy. Annual reporting of Complaints and Compliments (June)

Work on a range of high profile issues, including Raptor Persecution national action plan (Oct).

2 Partnerships: failure to achieve objectives or to identify joint liabilities (includes poor costing, lack of focus and accountability, and failure of key partners). Other bodies may withdraw from partnerships because of their own financial pressures / budget cuts. National Trails Partnership: failure to agree continuation of funding levels and how funding distributed, and/or match funding required (25%) isn’t secured.

Members (esp. Chair) CEO

Material Management processes; insurance cover; Authority scrutiny. Re-evaluation of involvement with partnerships every two years, and of the nature of the constitution of each partnership. Member Champion participation and feedback on partnership activity. NPMP produced by steering group that includes all key ‘delivery bodies that operate in the Park, thus ensuring buy-in. Steering Group also monitors progress on objectives, and produces annual report to the NPA; Memorandum of Understanding with YDMT in place. National Trails Partnership (Pennine Way, Pennine Bridleway). Westmorland Dales project partnership (YDNPA as accountable body) Review monitoring of partnerships (completed March 2019)

Support the delivery and development of a large number of joint projects, throughout the 2019/20 Action Plan. Direct and regular engagement with lead project management partner (Friends of the Lake District). Ongoing project-specific risk management plan in

Manageable Long Term

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Proximity

First annual progress report on 2019-24 NPMP (June 2019)

place

Economic / Financial

3 Funding Risks: Cuts to Defra grant and other external funding; YDMT; bad debts; Inflation and other cost increases; Earned income shortfalls; failure to realise full value from any asset disposals. Glover Review of Designated Landscapes (reporting 2019) may represent an opportunity or threat to NPA funding With the increasing volumes of grant work, there is risk of failing to evidence sums claimed (risk of repayment / funding loss) or to claim all monies available/due. This is a complex area, given the variety and number of grants. Reliance on external funding has increased with decision to accept increased staff costs of up to ~55% of gross expenditure. B4RN Broadband loans /share tranches fail to be repaid Lune Rivers Trust Loans:

CEO / SMTS/Heads

Severe (i) External funding spending plans (including staffing) are matched against grants as they become available (no reliance on other grants for core operations). Pipeline of external funding projects in continuous development; reviewed quarterly (ii) YDMT: joint working monitored through liaison meetings; NPP (iii) Very few commercial debtors, so exposure is minimal General controls: Partnership liaison; budgetary control and reporting (incl. to Senior Management and F&R Committee). Budget setting (especially long-term) and monitoring process. Staff and other costs management and review process in place, integrated with annual budget process. Ongoing review of Reserves and the Medium Term Funding Strategy; ensures that Reserves are appropriate to meet contingencies and support planned work which extends beyond any one financial year. Loan has been funded from Revenue (so no impact on operational objectives if loan fails); signed loan agreement. Active monitoring, and schedule of loans agreed that minimises the maximum exposure over the here years of the project

External Audit opinion, covering controls: annual objective is for unqualified report. Review of DCM and other Business Rates (Car Parks + Toilets) underway Significant number (and scale) of actions in Corporate Plan which seek additional external funding. Re-contracting of cash investment service (March) Financial monitoring visit / discussions with B4RN, once total exposure exceeds £180k Ongoing monitoring of LRT financial position.

Material On-going Annual

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Proximity

failure to repay.

Review of Income Generation Strategy (Dec 2018) and our participation in NPP Ltd (March 2019) Completed work with Defra to establish a new Grant funding Agreement to replace the (old) Financial Grant Memorandum.; significant tightening / restatement of grant conditions.

4 Failure in financial management (controls, recording, reporting); errors in budgeting; treasury management loss; working capital inadequacy. Risk of change in Finance Team personnel; operational failure of Payroll.

Members / DoCS

Manageable (i) Working capital / cash flow can be adjusted by flexibility in the draw down of Defra grant. (ii) Treasury Management policy is risk averse re: investments. (iii) For new staff, there is a documented hand-over and induction, plus probationary review. (iv) Internal audit monitoring. General controls: budgeting and monitoring process; professionally qualified staff and experienced Members; Financial Regulations; External Audit ; Defra reporting; Three-year budget (subject to annual re-setting). Annual Governance Statement (April); Unqualified [external] Audit Opinion (July); Payment Card Industry Data Security Standard: compliance in place. Internal Audit Annual Opinion of overall controls, conclusion: high level of assurance, March 2019) Review of Financial Regulations completed (July)

Maintain current controls. Prepare the three year budget strategy to 2022/23 (Dec);

Manageable On-going

5 Failure to comply with financial standards

DoCS Manageable Professional officers, including Accountant and MO / Solicitor, to identify / interpret new legislation; Annual Governance Statement; input from in-house Treasurer, Members, Internal and

Maintain current controls Manageable On-going

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Proximity

External audit.

6 Pension Scheme: risk of mismanagement or runaway contribution costs. Failure to adhere to auto-enrolment rules, and subsequent fine (re: auto-enrolment on appointment and on the 3 year anniversary) Triennial valuation due 2019, to set future rates from April 2020; risk of increased contributions

Members/DoCS

Manageable Controls: Contracted in to North Yorkshire LGPS, with contribution rates set by third party actuarial valuation. Risk assessment, and identification of counter measures, is integral to the scheme’s funding strategy. Auto-enrolment procedures in place, controlled by HR Manager and Payroll Clerk.

Maintain active membership of NY Local Government Pension Fund Officer Group. Ongoing. Review and update the Pension Discretions Policy and related policies (Dec)

Manageable Current / On-going

7 Fraud, Corruption and Theft (including expenses and collusive supplier fraud)

MO/ DoCS

Manageable Controls: Internal Audit (including annual audit of expenses); Treasurer role; Financial Regulations and accounting processes, including budget monitoring and managerial control; Gifts & Hospitality Code of Conduct; Anti Fraud & Corruption Policy; prescription and separation of duties, including Scheme of Delegation; Confidential Reporting (Whistle-blowing) Policy. Identity checks to constrain recruitment fraud. Asset register reviewed annually; car park cash collection contract; alarm facilities and contracts; Insurance.

Policies and controls kept under regular review. .

Manageable On-going

Legal and regulatory

8 Members, or officers under delegation, make an illegal or inappropriate decision

Members / MO/DMO

Manageable Controls: Member training and induction; Senior Officer guidance; External Audit; officer professional training / competence; Member experience; quality of officer reporting; Corporate Governance framework; Guidance to officers about the information Members need to support decision making. Requirements of the Data Transparency Code,

Corporate governance work initiated through preparation of Annual Governance Statement (published as part of Annual Accounts in July) and AG report (Nov) Review of Local Governance Code.

Manageable On-going

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Proximity

Openness of Local Government Bodies Regulations now in place. New Members continue to receive appropriate training and induction.

Review of Corporate Governance Policy (March 2020) and Enforcement Policy (Nov 2019)

9 Contracting failure (failure to complete contract, either because contractor not competent, or failure of their business)

S/Heads/ MO

Material Controls: Financial Regulations. Procurement advice from Solicitor and Finance Team. Project management framework. Procurement Strategy; Internal Audit of Procurement. Active contract management. For construction contracts, maintain final retention payment until end of defects liability period.

Maintain current processes. Review of procurement documentation including proforma contracts (now Dec)

Manageable Specific and On-going

10 Public liability. Risks to public whilst on our property or property we maintain; or taking part in NPA-run activities; negligence / breach of statutory duty; corporate manslaughter.

Directors / MO/S/Heads

Material / Manageable

Facilities management and other maintenance work; third party liability insurance (and requirement that our contractors have this too); risk assessments for planned work, National Park Centres and Dales Countryside Museum and Car Parks. ‘Safeguarding’ policy (on protection of people from vulnerable groups). Accident monitoring. H&S Procedures (including CDM). Bolton Abbey Access Agreement. Review of Public Liability insurance cover requirements (completed in August)

Maintain current processes. Insurance requirements are being kept under review, and will continue to be adjusted for increases in personnel / premises/ vehicles/ turnover, as required. Insurance Advice: re-contracting (March) Review and revise the Risk Assessment and Inspection Process for each National Park car park and amenity site (Mar)

Manageable On-going

11 Risk of judicial review following failure to operate adequate processes (e.g. public consultations)

MO Material / Manageable

Senior officer guidance , legal advice; standing orders; financial regulations; guidance on the roles of Members; advice to Members of the Planning Committee; written reports covering relevant issues. Data Protection Policy (Compliance review, June 2019). Complaints procedure (including process of referrals to Ombudsman)

Maintain current processes.

Manageable On-going

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Proximity

Organisational management and human factors

12 Ineffective management: Failure to complete projects / meet targets; failure to follow agreed Policies and Strategies (procedural, operational and legal risk).

CEO/ SMT/S/Heads

Material Project management system, reviews of routine processes and for key projects, including performance improvement reviews; monitoring by Committee and SMT (including achievement of objectives and monitoring Performance Indicators). Managed policy / strategy library. Internal Audit and other review processes (including performance Improvement and major project reviews). Annual Review of achievement of Authority objectives (progress review, October; annual review after year end); annual review of performance against Local plan (June) Annual appraisal system for all officers (with 360 feedback on performance, for senior officers); Confidential Reporting Policy. Lessons learnt from Results-Based Agri-environment Payment Scheme pilot (April 2019); Public Rights of Way Annual Report (June 2019) Authority priorities reviewed annually (SMT July 2019) Employee Code of Conduct (reviewed November 2018) Internal Audit, re-contracting: completed Sept 2019 Publication of a detailed assessment of the Authority’s performance in 2018/19 (July)

Specific risk assessments in preparation for major ‘standalone’ projects: includes Westmorland Dales Landscape Partnership. Project and programme reviews planned for 2019/20 include Barn Restorations (March) and the Pennine Trails Partnership (Nov) Approach to new Defra Performance Monitoring Arrangements for 25 year Plan outcomes (March) IiP: Overall action plan now in place, but being developed further, to identify specific and significant outcomes to be included in 2020/21 Corporate Plan

Manageable On-going

13 Staffing Resources Recruitment risk/difficulties

CEO/ SMT/S/

Manageable Recruitment processes, including pre-employment health screening; psychometric

IiP annual review due December 2019. Develop Action Plan to

Manageable On-going

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Proximity

Staffing insufficient for planned activity levels

Heads testing; ‘Preventing Illegal Working’. Disclosure and Barring Service checks where critical / permissible; employment references. Training updates on recruitment to all staff involved in the recruitment process. Monitoring of recruitment (including equality). Benchmarking policy for salaries. Managed through budgeting process Now operating four ‘internal’ apprenticeships; all 4 of first cohort now in employment (3 with Authority, 1 with partner organisation)

deliver targeted improvements that build on the 2018 assessment (July onwards) New IT Planning System (Dec) aimed at improving efficiency of that section

14 Loss of key staff. Includes contingency planning for ‘emergency’ scenarios.

CEO/ SMT/S/Heads

Material Notice clause in employment contracts; developmental training, including management development, offered to staff to provide a degree of succession planning. Use of secondments / ‘acting up’; external contracting. Project management notes and recording, to assist hand-over. IiP standard. Documentation which describes how to undertake key processes, e.g. Finance Manual, Legal Practice Manual. Part-time staff with some capacity for short-term cover. Recruitment of a pool of casual workers to cover occasional Reception shortfalls also available to provide some admin cover. Broad ‘pool’ of officers capable of updating the Website.

Maintain current processes.

Manageable Specific and on-going

15 Failure to comply with employment and related legislation. Liabilities arising from: harassment, bullying, sexual assault, other violence, discrimination; unfair dismissal.

CEO/MO/ Personnel Manager

Manageable Professionally-qualified HR staff; Monitoring Officer; External Audit; guidance from central and local government; interaction with, and advice from, UNISON; Equality Act Statement of Compliance; Equality Working Group-led Equality Impact Assessments of key projects, proposals. Availability of in-house legal expertise. Anti-harassment and anti-bullying

Maintain current processes. Planned schedule of reviews of Personnel Policies , in line with People Management Strategy (March) Annual Equality Report, due

Manageable On-going Specific

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Proximity

policy. Equalities training. HR policies reviewed since Nov 2018 include: Grievance; Job Sharing; Capability; Relocation; Training & Development; Travel, Mileage and Subsistence; Fixed Term Contracts; Home working; Overtime; Special leave; Parental leave; Probationary period; Flexible Working.

December 2019. Review of Equality & Diversity Policy (Dec)

16 Health & Safety; includes hazardous working (and personal security / lone working)

CEO/ Directors S/Heads

Material Health & Safety procedures and policies, including appropriate training; compulsory risk assessment process; Safety Risk Register (actively maintained) to guard against physical / verbal abuse of staff; H&S working Group; Corporate Manslaughter Risk Matrix; Annual COSHH (Control of Substances Hazardous to Heath) assessment carried out and register maintained; likewise, property-related H&S assessments maintained; insurance; routine reporting (including accidents) to F&R Committee. External review of Fire Safety, conducted periodically, with action plan for improvements. H&S handbook kept under active review (along with associated risk assessments and the related H&S Strategic Action Plan, updated quarterly); significant work undertaken so far since Nov 2018 includes: hillcraft and navigational skills training; streamlining of Accident Reporting form; audit of Colvend Workshop; Protocol for driving in yard area to rear of Colvend; generic risk assessments developed (June 2019) for working with biological specimens. Shows and events guidance now makes it clear that nil returns (where such is the case) for accidents / incidents must be made, to cover any incidence of future claims

Maintain current processes. Ranger accommodation : resolve issue in south of Park (Mar) Produce a Volunteers Supervisor Handbook

Manageable On-going

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Proximity

Annual H&S report produced (May 2019).

17 ‘Health’ of buildings DoCS / Project & Estates Officer

Manageable Regular inspection of properties. Asbestos assessment completed. Premises Management Plan developed to cover all building risks (including methane, DDA, structural and electrical safety; methane, Radon, Fire risk, asbestos, vermin infestation, legionnaires disease). ‘Review’ process to ensure all management plans are active.

Maintain current processes. Ongoing planned maintenance and refurbishment of public toilets (Buckden and Linton Falls; March)

Manageable On-going Specific

18 Officer stress and mental well-being

CEO Manageable Performance appraisal and management processes; Risk assessments; confidential Occupational Health advice and counselling service (confidential support service); organisational culture; Personnel policies including Capability / Improving Performance and Flexible Working; management process for sick leave . Managing Stress guidelines. Overview reporting of Authority-wide sickness levels (quarterly) Protocol on Member / officer relations in place. Review of ‘Reducing unnecessary burdens’, completed April 2019.

Mental Health awareness training (May). Looking at option for further sessions

Manageable Specific

19 Physical risk from attack by a member of the public, in the field and at offices.

CEO/ SMT/S/Heads

Manageable Policies in place for off-site working. De-escalation training provided at NPCs and for Rangers and Planners. Process for notifying officers about potential risks of personal harm when visiting certain sites (Safety Risk Register). Buddy system in place; Lone working risk assessment.

Maintain current processes

Manageable Specific

20 Industrial Action CEO Manageable Relationship with Unison managed through regular Joint Consultative Forum meetings.

Maintain current processes Manageable On-going

Environmental factors / acts of God

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Proximity

21 Physical damage or deterioration to NPA assets

DoCS + Directors

Manageable Controls: insurance; maintenance work (including dedicated staff and budgets); fire safety reviewed regularly; Emergency maintenance arrangements; IT back up and contingency plans. Re-roofing Colvend main office and Refurbishment and repair works to Grassington NPC and Colvend Cottage completed

Maintain current processes. Work ongoing to address deterioration of DCM via damp issue. Contractor currently on site, at work replacing roof.

Manageable On-going

22 Adverse weather and other events (significant snowfall; inland flooding, moorland fires); impact is also on ‘outside’ project work, such as Rights of Way; damage to under-maintained bridges, leading to RoW degradation

DoCS + Directors

Manageable Controls: home working capacity; gritting policy for car parks and annual risk assessments; member of North Yorkshire Wildfire Group. Re; bridges: via discussions with NYCC/CCC (which retain financial responsibility for large bridges).

Staff respond appropriately to events; severe weather issues dealt with as they occur.

Manageable On-going

23

Technical / operational / infrastructure risks

24 Loss of IT system and records

Head of F&R/Snr IT Officer

Severe Systems capable of independent operation (network resilience); disaster recovery plan. WAN contract designed to provide additional capacity and resilience. A basic payroll can be run if the in-house ‘main’ system is unavailable, ensuring that officers will at least be paid their basic salary. Tills at NPCs can operate independently of the main Retail system (main system updates on reconnection) IT Strategy 2017-2022 in place. Update to the IT servers; completed an update and standardisation of all desk top computers (work on both will continue as systems and requirements develop)

Annual Reviews of IT functionality by Internal Audit. Website redevelopment (launch October 2019) Install new planning software, incl. document management and public portal (Dec)

Manageable On-going

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Proximity

25 Unauthorised access and data security. Risk includes Viruses / hacking / sabotage.

Head of F&R/ Snr IT Officer

Material Firewall and virus control software; password control; back-ups at main server sites. Access control procedures. Encryption processes. Data Protection awareness; Staff declaration of compliance with IT security policies. All officers made aware of Ransomware issue, and our likely response. Firewall has been updated and now has extra web-browsing security measures. Appointment of Senior Information Risk Owner (SIRO)

As above.

Manageable On-going

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ITEM 9

Committee: AUDIT AND REVIEW Date: 5 November 2019 Report: MID-YEAR TREASURY MANAGEMENT REVIEW:

REPORT OF THE TREASURER

Purpose of the Report 1. To present details of the Authority’s 2019/20 Treasury Management activity up to 30 September 2019, together with a mid-year review of the Treasury Management Strategy and a ‘Prudential Indicators’ update. RECOMMENDATIONS 2. That Members:

(i) Note the position on the Authority’s 2019/20 investment (Treasury Management) activities up to 30 September 2019.

(ii) Note the continued applicability of the Prudential Indicators for the period

2019/20 to 2021/22, as agreed by the Authority on 26 March 2019. Strategic Planning Framework

3. The information and recommendations contained in this report are consistent with the Authority’s statutory purposes and its approved strategic planning framework, and in particular its objective to manage all aspects of the Authority’s business so as ‘to make the most effective use of our resources’ (Corporate Plan 2019/20, Objective 34). Background 4. The Treasury Management function is concerned with the management of the Authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks. 5. Members will be aware that day to day investment activity is undertaken on behalf of the Authority by North Yorkshire County Council (NYCC) under contract. 6. The process of Treasury Management in the Public Services is regulated by the CIPFA Code of Practice on Treasury Management 2009. The Authority must also comply with the CIPFA Prudential Code for Capital Finance in Local Authorities.

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Review of the Annual Treasury Management and Investment Strategy for 2019/20 7. The Authority’s Treasury Management and Investment Strategy (approved by the Authority on 26 March 2019) set out the Authority’s approach to managing its Treasury Management activities for the financial year to 31 March 2020. 8. The CIPFA Code of Practice for Treasury Management (2009) requires that Annual Treasury Management Strategies are kept under constant review and reported to Members as appropriate. There is a requirement for a mid-year review as a minimum. 9. It is considered at this time that the Strategy approved in March 2019 remains fit for purpose. Whilst there are considerable financial uncertainties in the future, including in relation to Brexit and then the post-2020 National Parks Grant settlement, the approach adopted in this strategy is uncomplicated and risk averse: we aim to make a reasonable interest-related return on our cash holdings, and have no plans to incur capital borrowing. Investment Activity 10. Under the contractual arrangements with NYCC for the investment of cash balances the Authority adopts the investment strategy adopted by the NYCC. The net return achieved is closely monitored by the Treasurer. 11. NYCC operates a ‘pooling’ arrangement under which cash held by the Authority is merged with that of other organisations, to secure better overall returns in the money market. Interest is paid at the overall average rate achieved. 12. Any loss incurred by NYCC as a result of default by a counterparty would be apportioned between the participants of the pool (which includes NYCC itself), in proportion to the total surplus cash funds at the time of default. 13. The Authority’s Treasury Management and Investment Strategy for 2019/20 states that the Authority’s investment priorities are (a) security of capital, and (b) liquidity. We aim to achieve the optimum return on investments within this context. 14. The only financial investments made by NYCC in 2019/20 up to 30 September were the placing of surplus funds on the money markets for periods of up to one year, to institutions included on NYCC’s Approved Lending List. For this Authority the results of these placings were as follows:

Bank balance as at 30 September 2018 £3,573k

Average Rate achieved up to 30 September 2018 0.70%

Interest Earned up to 30 September 2019 £21k

Average Rate achieved up to 30 September 2019 0.93%

Bank balance as at 30 September 2019 £3881k

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15. The budget projection for 2019/20 was for bank interest earnings of £35k for the full year. Assuming the continuation of current base rate levels, the figure for the full year is likely to be closer to £42k, or £7k above budget. However, without a further change to base rates, actual income will be very slightly lower than £42k, because the Authority is making a series of interest-free loans to the Lune Rivers Trust over the remainder of the year, for conservation works. Interest Rate Forecasts 16. At the start of 2019/20, the Bank of England base rate stood at 0.75%, with expectations of a very gradual increase in rates as the year progressed. In the event, the economic uncertainty caused by the Brexit impasse has meant that there has been no need (or capacity) to apply higher interest rates as a brake on unsustainably high rates of economic growth, such growth having become negligible. Going forwards, the continuing uncertainty (as at the date of this report) has created something of a dilemma: in the instance of a disorderly Brexit, should interest rates be cut to boost growth, or raised to curb inflation caused by a possible fall in the exchange rate, shortages and tariffs? In the event of a Brexit deal, the Government’s Monetary Policy Committee (MPC) has a general position that rates would be likely to go up slowly and gradually, but individual members of the MPC are suggesting that a cut is plausible, deal or no deal. Clearly, things could go either way; but for this year at least, we are likely to reach our target for interest income (see previous paragraph). Prudential Indicators 17. The Prudential Code requires appropriate arrangements for the monitoring, reporting and revision of Prudential Indicators. These indicators set out the potential borrowing requirements of the Authority, a necessary step were it to be decided that borrowing should take place. Although there are no plans currently for any borrowing, that fact does not exempt the Authority from complying with this aspect of the Prudential Code. 18. The 2018/19 outturn figures for Prudential Indicators were reported to this Committee on 9 July 2019. That outturn report did not consider any consequential changes to the various indicators set for the three year period 2019/20 to 2021/22. It is therefore necessary to consider and revise, where appropriate, the Prudential Indicators for the three years up to 31 March 2022. Having reviewed the Authority’s budget for 2019/20, and its performance in terms of income and expenditure to date, no changes are proposed to the existing Prudential Indicators. None of the limits set for Prudential Indicators were breached up to 30 September 2019. Richard Burnett Treasurer 8 October 2019

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ITEM 10

Committee AUDIT AND REVIEW Date: 5 November 2019 Report: ANNUAL AUDIT LETTER Purpose of the report 1. To present the External Auditor’s Annual Audit Letter to Members, summarising the significant issues arising from the 2018/19 audit. Recommendation 2. Members are requested to note this report. Strategic Planning Framework 3. The information and recommendation contained in this report are consistent with the Authority’s statutory purposes and its approved strategic planning framework:

• Corporate Plan, Objective 36: Operate governance arrangements that are fit for

purpose, as reported through the Annual Governance Statement and the Annual Governance Report.

Background 4. A copy of the Annual Audit Letter, issued on 16 August 2019, is attached to this report. As explained in the ‘Executive Summary’ section of the letter, no problems were identified in relation to the 2018/19 audit, and an unqualified audit opinion was given. This provides a level of assurance over the adequacy of the systems used in preparing the annual accounts. 5. The process of issuing such a letter enables the external auditor to bring directly to Members attention any issues that they might identify during their audit work. This ‘direct line’ for reporting helps to strengthen the Authority’s approach to corporate governance. Richard Burnett Director of Corporate Services 7 October 2019

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Yorkshire Dales National Park AuthorityAnnual Audit Letter for the year ended 31 March 2019

August 2019

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Contents

Executive Summary

01

Purpose and Responsibilities

02

Financial Statement Audit

03

Public Sector Audit Appointments Ltd (PSAA) have issued a ‘Statement of responsibilities of auditors and audited bodies’. It is available from the Chief Executive of each audited body and via the PSAA website (www.psaa.co.uk). This Statement of responsibilities serves as the formal terms of engagement between appointed auditors and audited bodies. It summarises where the different responsibilities of auditors and audited bodies begin and end, and what is to be expected of the audited body in certain areas.The ‘Terms of Appointment (updated April 2018)’ issued by PSAA set out additional requirements that auditors must comply with, over and above those set out in the National Audit Office Code of Audit Practice (the Code) and statute, and covers matters of practice and procedure which are of a recurring nature. This Annual Audit Letter is prepared in the context of the Statement of responsibilities and Terms of Appointment. It is addressed to the Members of the audited body, and is prepared for their sole use. We, as appointed auditor, take no responsibility to any third party.Our Complaints Procedure – If at any time you would like to discuss with us how our service to you could be improved, or if you are dissatisfied with the service you are receiving, you may take the issue up with your usual partner or director contact. If you prefer an alternative route, please contact Steve Varley, our Managing Partner, 1 More London Place, London SE1 2AF. We undertake to look into any complaint carefully and promptly and to do all we can to explain the position to you. Should you remain dissatisfied with any aspect of our service, you may of course take matters up with our professional institute. We can provide further information on how you may contact our professional institute.

05Other Reporting

Issues

08

Value for Money

04Focused on your

future

Audit Fees

07

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http://www.psaa.co.uk/

3

Executive Summary01

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Executive Summary

We are required to issue an annual audit letter to Yorkshire Dales National Park Authority (the Authority) following completion of our audit procedures for the year ended 31 March 2019.

Below are the results and conclusions on the significant areas of the audit process.

Area of Work Conclusion

Opinion on the Authority’s:

► Financial statements

Unqualified – the financial statements give a true and fair view of the financial position of the Authority as at 31 March 2019 and of its expenditure and income for the year then ended

► Consistency of other information published with the financial statements

Other information published with the financial statements was consistent with the Annual Accounts.

Concluding on the Authority's arrangements for securing economy, efficiency and effectiveness

We concluded that you have put in place proper arrangements to secure value for money in your use of resources.


Reports by exception:

► Consistency of Governance Statement The Governance Statement was consistent with our understanding of the Authority.

► Public interest report We had no matters to report in the public interest.

► Written recommendations to the Authority, which should be copied to the Secretary of State

We had no matters to report.

► Other actions taken in relation to our responsibilities under the Local Audit and Accountability Act 2014



Reporting to the National Audit Office (NAO) on our review of the Authority's Whole of Government Accounts return (WGA).



Issued a report to those charged with governance of the Authority communicating significant findings resulting from our audit.

Our Audit Results Report was issued on 30 July 2019.

Issued a certificate that we have completed the audit in accordance with the requirements of the Local Audit and Accountability Act 2014 and the National Audit Office’s 2015 Code of Audit Practice.

Our certificate was issued on 31 July 2019.

We would like to take this opportunity to thank the Authority’s staff for their assistance during the course of our work.

Hassan Rohimun

Associate Partner

For and on behalf of Ernst & Young LLP86/102

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Purpose and Responsibilities02

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Purpose and Responsibilities

The Purpose of this Letter

The purpose of this annual audit letter is to communicate to Members and external stakeholders, including members of the public, the key issues arising from our work, which we consider should be brought to the attention of the Authority.

We have already reported the detailed findings from our audit work in our 2018/19 Audit Results Report to the 30 July 2019 Finance and Resources Committee, representing those charged with governance. We do not repeat those detailed findings in this letter. The matters reported here are the most significant for the Authority.

Responsibilities of the Appointed Auditor

Our 2018/19 audit work has been undertaken in accordance with the Audit Plan that we issued on 9 April 2019 and is conducted in accordance with the National Audit Office's 2015 Code of Audit Practice, International Standards on Auditing (UK), and other guidance issued by the National Audit Office.

As auditors we are responsible for:

► Expressing an opinion:

► On the 2018/19 financial statements; and

► On the consistency of other information published with the financial statements.

► Forming a conclusion on the arrangements the Authority has to secure economy, efficiency and effectiveness in its use of resources.

► Reporting by exception:

► If the annual governance statement is misleading or not consistent with our understanding of the Authority;

► Any significant matters that are in the public interest;

► Any written recommendations to the Authority, which should be copied to the Secretary of State; and

► If we have discharged our duties and responsibilities as established by the Local Audit and Accountability Act 2014 and Code of Audit Practice.

Alongside our work on the financial statements, we also review and report to the National Audit Office (NAO) on your Whole of Government Accounts return. The Authority is below the specified audit threshold of £500mn. Therefore, we did not perform any audit procedures on the return.

Responsibilities of the Authority

The Authority is responsible for preparing and publishing its statement of accounts accompanied by an Annual Governance Statement (AGS). In the AGS, the Authority reports publicly each year on how far it complies with its own code of governance, including how it has monitored and evaluated the effectiveness of its governance arrangements in year, and any changes planned in the coming period.

The Authority is also responsible for putting in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources.

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7

Financial Statement Audit03

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Financial Statement Audit

Key Issues

The Authority’s Statement of Accounts is an important tool to show how it has used public money and how it can demonstrate its financial management and financial health.

We audited the Statement of Accounts in line with the National Audit Office’s 2015 Code of Audit Practice, International Standards on Auditing (UK), and other guidance issued by the National Audit Office and issued an unqualified audit report on 31 July 2019.

Our detailed findings were reported to the 30 July 2019 Finance and Resources Committee.

Fraud Risk Conclusion

Misstatements due to fraud or error

The financial statements as a whole are not free of material misstatements whether caused by fraud or error.

As identified in ISA (UK and Ireland) 240, management is in a unique position to perpetrate fraud because of its ability to manipulate accounting records directly or indirectly and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. We identify and respond to this fraud risk on every audit engagement.

We did not identify any material weaknesses in controls or evidence of material management override.

Through our testing of journals, we did not identify any matters to report to you.

We did not identify any instances of inappropriate judgements being applied or bias within significant accounting estimates.

Risk of fraud in revenue and expenditure recognition

Under ISA 240 there is a presumed risk that revenue may be misstated due to improper revenue recognition. In the public sector, this requirement is modified by Practice Note 10 issued by the Financial Reporting Council, which states that auditors should also consider the risk that material misstatements may occur by the manipulation of expenditure recognition.

We consider that this significant risk is associated to the following specific areas:

• Improper capitalisation of revenue expenditure in order to reduce the impact on the general fund

• Understatement of expenditure recognised as liabilities in the balance sheet at the year-end

• Improper application of revenue cut-off.

Our testing did not identify any material misstatements with respect to revenue and expenditure recognition.

Our audit work did not identify any material issues or unusual transactions which may have indicated that the financial position had been misreported.

Our testing of asset additions did not identify any inappropriate capitalisation.

Our work testing cut-off of both debtors and creditors did not yield any errors.

The key issues identified as part of our audit were as follows:

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9

Financial Statement Audit (cont’d)

Risk Conclusion

Valuation of Property, Plant and Equipment

The Authority has a large and complex asset base that makes up a significant proportion of its balance sheet. Valuation of assets is an area subject to professional estimation and therefore a higher inherent risk of misstatement.

The fair value of Property, Plant and Equipment (PPE) and Investment Properties (IP) represent significant balances in the Authority’s accounts and are subject to valuation changes, impairment reviews and depreciation charges. Management is required to make material judgemental inputs and apply estimation techniques to calculate the year-end balances recorded in the balance sheet.

We identified some misstatements in this area, relating to the accounting for increases and decreases in the valuation of Land and Buildings.

Amendments were made to the disclosure note due to the incorrect application of transactions relating to PPE revaluation. These amendments did not change the PPE net book value.

Local Government Pension Scheme

The accounting entries relating to the Local Government Pension Schemes are underpinned by significant assumptions and estimates. There is therefore an increased risk of misstatement and error.

The Authority’s pension fund deficit is a material estimated balance and the Code requires that this liability be disclosed on the Authority’s balance sheet.

Accounting for this scheme involves significant estimation and judgement and therefore management engages an actuary to undertake the calculations on their behalf. ISAs (UK and Ireland) 500 and 540 require us to undertake procedures on the use of management experts and the assumptions underlying fair value estimates.

We assessed and are satisfied with the competency and objectivity of the Authority’s actuary.

We obtained assurances from the auditors of the Pension Fund, which did not identify any issues relevant to our audit. Our review of accounting entries at the period end and those journals made in processing valuation adjustments did not reveal any instances of management intention to misreport the financial position. However as we did report in the year, a high court ruling (The McCloud Judgement) created a constructive obligation as at the balance sheet, the Authority obtained an updated report from the Pension Fund Actuary and adjusted for the increase in the defined benefit.

The other risk identified as part of our audit were as follows:

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Risk Conclusion

Implementation of new accounting standards:

- IFRS 9 – Financial Instruments

- IFRS 15 – Revenue contracts with customers

These are new accounting standards applicable for local authority accounts from the 2018/19 financial year. There is a risk that the Authority does not implement the requirements of the standards correctly

IFRS 9 is applicable for local authority accounts from the 2018/19 financial year and will change; how financial assets are classified and measured; How the impairment of financial assets are calculated; and the disclosure requirements for financial assets.

IFRS15 is applicable for local authority accounts from the 2018/19 financial year. The key requirements of the standard cover the identification of performance obligations under customer contracts and the linking of income to the meeting of those performance obligations.

The 2018/19 Cipfa Code of practice on local authority accounting provides guidance on the application of IFRS 9 and IFRS 15.

We reviewed the work performed by management to determine the impact the new standards on the financial statements.

Our audit work did not identify any issues to report in regards to these changes.

The other risk identified as part of our audit were as follows:

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When establishing our overall audit strategy, we determined a magnitude of uncorrected misstatements that we judged would be material for the financial statements as a whole.

Item Thresholds applied

Planning materiality We determined planning materiality to be £156k (2018: £156k), which is 1.9% of gross revenue expenditure reported in the accounts of £8.2million.

We consider gross revenue expenditure to be one of the principal considerations for stakeholders in assessing the financial performance of the Authority.

Reporting threshold We agreed with the Finance and Resource Committee that we would report to the Committee all audit differences in excess of £8k (2018: £8k)

Our application of materiality

We also identified the following areas where misstatement at a level lower than our overall materiality level might influence the reader. For these areas we developed an audit strategy

specific to these areas. The areas identified and audit strategy applied include:

► Remuneration disclosures including any severance payments, exit packages and termination benefits:

► Related party transactions.

We set a materiality of £1k for remuneration disclosures including any severance payments, exit packages and termination benefits and related party transactions which reflects

our understanding that an amount less than our materiality would influence the economic decisions of users of the financial statements in relation to this. We identified only minor misstatements in relation to these notes.

We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant qualitative considerations.

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Value for Money04

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Value for Money

We are required to consider whether the Authority has put in place ‘proper arrangements’ to secure economy, efficiency and effectiveness in its use of resources. This is known as our value for money conclusion.

Proper arrangements are defined by statutory guidance issued by the National Audit Office. They comprise your arrangements to:

► Take informed decisions;

► Deploy resources in a sustainable manner; and

► Work with partners and other third parties.

Proper arrangements for securing value for

moneyWorking

with partners and third parties

Sustainable resource

deployment

Informed decision making

We did not identify any significant risks in relation to these criteria.

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Other Reporting Issues05

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Other Reporting Issues

Whole of Government Accounts

We are required to perform the procedures specified by the National Audit Office on the accuracy of the consolidation pack prepared by the Authority for Whole of Government Accounts purposes. The Authority is below the specified audit threshold of £500mn. Therefore, we were not required to perform any audit procedures on the consolidation pack.

Annual Governance Statement

We are required to consider the completeness of disclosures in the Authority's annual governance statement, identify any inconsistencies with the other information of which we are aware from our work, and consider whether it is misleading.

We completed this work and did not identify any areas of concern.

Report in the Public Interest

We have a duty under the Local Audit and Accountability Act 2014 to consider whether, in the public interest, to report on any matter that comes to our attention in the course of the audit in order for it to be considered by the Authority or brought to the attention of the public.

We did not identify any issues which required us to issue a report in the public interest.

Written Recommendations

We have a duty under the Local Audit and Accountability Act 2014 to designate any audit recommendation as one that requires the Authority to consider it at a public meeting and to decide what action to take in response.

We did not identify any issues which required us to issue a written recommendation.

Objections Received

We did not receive any objections to the 2018/19 financial statements from members of the public.

Other Powers and Duties

We identified no issues during our audit that required us to use our additional powers under the Local Audit and Accountability Act 2014.

Independence

We communicated our assessment of independence in our Audit Results Report to the Finance and Resources Committee on 30 July 2019. In our professional judgement the firm is independent and the objectivity of the audit engagement partner and audit staff has not been compromised within the meaning regulatory and professional requirements.

Control Themes and Observations

As part of our work, we obtained an understanding of internal control sufficient to plan our audit and determine the nature, timing and extent of testing performed. Although our audit was not designed to express an opinion on the effectiveness of internal control, we are required to communicate to you significant deficiencies in internal control identified during our audit.

We have adopted a fully substantive audit approach and have therefore not tested the operation of controls.

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Focused on your future06

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Focused on your future

The Code of Practice on Local Authority Accounting in the United Kingdom introduces the application of new accounting standards in future years. The impact on the Authority is summarised in the table below.

Standard Issue Impact

IFRS 16 Leases It is currently proposed that IFRS 16 will be applicable for local authority accounts from the 2020/21 financial year.

Whilst the definition of a lease remains similar to the current leasing standard; IAS 17, for local authorities who lease a large number of assets the new standard will have a significant impact, with nearly all current leases being included on the balance sheet.

There are transitional arrangements within the standard and although the 2020/21 Accounting Code of Practice for Local Authorities has yet to be issued, CIPFA have issued some limited provisional information which begins to clarify what the impact on local authority accounting will be. Whether any accounting statutory overrides will be introduced to mitigate any impact remains an outstanding issue.

Until the 2020/21 Accounting Code is issued and any statutory overrides are confirmed there remains some uncertainty in this area.

However, what is clear is that the Authority will need to undertake a detailed exercise to identify all of its leases and capture the relevant information for them. The Authority must therefore ensure that all lease arrangements are fully documented.

IASB Conceptual Framework

The revised IASB Conceptual Framework for Financial Reporting (Conceptual Framework) will be applicable for local authority accounts from the 2019/20 financial year.

This introduces;

– new definitions of assets, liabilities, income and expenses– updates for the inclusion of the recognition process and criteria and new provisions on derecognition– enhanced guidance on accounting measurement bases- enhanced objectives for financial reporting and the qualitative aspects of financial information.

The conceptual frameworks is not in itself an accounting standard and as such it cannot be used to override or disapply the requirements of any applicable accounting standards.

However, an understanding of concepts and principles can be helpful to preparers of local authority financial statements when considering the treatment of transactions or events where standards do not provide specific guidance, or where a choice of accounting policies is available.

It is not anticipated that this change to the Code will have a material impact on Local Authority financial statements.

However, Authorities will need to undertake a review to determine whether current classifications and accounting remains valid under the revised definitions.

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Audit Fees07

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Audit Fees

Our fee for 2018/19 is in line with the scale fee set by the PSAA reported in our Audit Planning Report.

Description

Final Fee 2018-19

£

Planned Fee 2018-19

£

Scale Fee 2018-19

£

Final Fee 2017-18

£

Total Audit Fee – Code work 9,319 9,319 9,319 12,103

Proposed Scale Fee Variation* 2,650 - - -

Total Audit Fee 11,969 9,319 9,319 12,103

All fees exclude VAT

* The proposed variation to the scale fee is subject to PSAA approval and relates to additional audit work performed to gain assurance over the additional defined benefit obligation liabilities arising from the McCloud Judgement.

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