September 2007

Annual Report

and Financial StatementsYear ended 31 March 2007

Contents

Annual report page

Chairman’s Statement 1 - 2

Chief Executive’s Review 3 - 4

Operating Review 5 - 13

Governance 14 - 17

Environmental Policy Statement 18

Directors Report 19 - 23

Remuneration Report 24 - 29

Statement on Internal Control 30 - 31

Certificate and Report of the Comptroller and Auditor General 32 - 33

Financial statements

Income & Expenditure account 34

Statement of recognised gains and losses 35

Balance sheet 36

Cash flow Statement 37 - 38

Notes to the financial statements 39 - 63

1

Chairman’s Statement

The Northwest Regional Development Agency

(NWDA) has a bold ambition for the region – to build

on our strengths, seize new opportunities and grow

our £106 billion economy. The last seven years have

taught us much about how to achieve this growth.

One of the most crucial lessons is that investing in

significant transformational projects has the most

impact on our economy and this is increasingly

where the NWDA is focusing its attention.

Last year saw significant progress on many of the

transformational actions identified in the five themes of

the Regional Economic Strategy (RES) – Business,

Skills & Education, People & Jobs, Infrastructure and

Quality of Life.

The digital and creative industries sector has the

potential to be a key driver of growth for the Northwest.

The development of mediacity:uk at Salford Quays,

including the BBC’s decision to move 1,500 jobs to

mediacity:uk, was a major boost for the sector last year

and will cement Greater Manchester’s reputation as a

hub for world-class creative industries. The development

will define the Northwest as a global centre for media

and creative industries, employing 15,500 people and

adding £200 million annually to the regional economy.

Another important development was the launch of

Business Link Northwest in April 2007. The new service

is providing the region’s businesses with a primary

access point for business support and a more efficient,

consistent and targeted service. Enabling companies to

access the support that they need is essential and we

are confident that the new service will deliver high

quality, appropriate advice. Together with Business Link

Northwest, the Agency also secured the contract for the

regional Skills Brokerage Service delivered under the

Train to Gain brand in the Northwest. The service marks

the beginning of a new and more dynamic way of

identifying comprehensive solutions to the business and

skills requirements of employers.

Improving the provision of Higher Education for young

people across the region is essential. In 2006/7,

progress has continued on two major developments -

the new University of Cumbria, which opens its doors to

students in September, and a new campus and

University Centre for Burnley College. For a number of

years, partners have been working hard to build a

stronger Higher Education framework for Cumbria and

East Lancashire; both developments will help to retain

our talented young people in the region.

The RES recognised that the city-regions of Manchester,

Liverpool and Central Lancashire, drive our economy.

There are also other areas with acute needs. In

Blackpool, new solutions are needed to support the

town’s regeneration and economic growth. Following the

regional casino decision, our commitment to the town’s

development is an even greater priority. I am pleased

that the NWDA, Government Office for the North West

and ReBlackpool, have been asked by Government to

expand an existing group of organisations into a task

force to secure Blackpool's future regeneration. The task

force will be working hard to examine Blackpool’s

economic, social and environmental plans and develop

innovative long-term solutions.

Economic growth relies on effective transport and

communications networks, together with high-quality

employment sites and sustainable uses for brownfield

land. Strong progress has been made on key business

sites including Kingsway in Greater Manchester and

Luneside in Lancaster, while the £23 million Newlands

programme is helping to transform brownfield land

across the Northwest.

The RES emphasises the importance of our Quality of

Life – our culture and image, communities and

environment. Culture is taking centre stage with the

fourth Liverpool Biennial last Autumn and good progress

on both the Manchester International Festival and

Liverpool as European Capital of Culture. As Liverpool

begins the countdown to its 2008 celebrations with its

2

800th birthday in 2007, we must work together to seize

the opportunity to showcase both Liverpool and the

Northwest to the UK and overseas. The Agency will be

working closely with the Culture Company to make the

most of the economic benefits it provides for the

whole region.

The growing emphasis on climate change and our

environment was a key priority during 2006/7 and will

continue to be so. The NWDA is working hard with its

partners to address the causes and respond to the £30

billion opportunity that climate change offers British

business over the next ten years.

In November 2006 the region launched its Climate

Change Action Plan, designed to maximise the positive

impact of environmental change and ensure that we

understand both the risks and the opportunities for the

environmental technologies sector. Over the coming year

the Agency will be playing a full part in ensuring that the

Action Plan delivers real progress for the region.

The RES is now widely recognised as the blueprint for

the Northwest’s sustainable future. I would like to thank

everyone for their efforts and encourage continued

enthusiastic and vigorous support. I would like to thank

specifically NWDA’s Chief Executive and everyone of the

Agency for their contribution. I also thank the NWDA

Board for their dedication and commitment and

specifically to thank those Board members who will retire

this year, namely Anil Ruia, Mike Storey, Pauleen Lane,

John Moverley and David Brockbank.

Bryan M Gray, Chairman

3

Chief Executive’s Review

In 2006/07 the Agency focused on working with

partners to implement the priorities and

transformational actions identified in the Regional

Economic Strategy (RES). I am pleased to say that

the delivery of the RES has reflected the process of

the Strategy’s development - with all of our partners

working together to ensure we are focusing on

delivering the priorities that will make the most

impact on our economy.

The Agency has continued to strengthen its relationship

with Sub-Regional Partnerships throughout the year to

ensure the RES is supported at a sub-regional and local

level. Over the coming year, we will be focusing on

driving forward the development of the City Regions of

Manchester, Liverpool and Preston/Lancashire, given

their capacity to increase the region’s economic

performance.

I was pleased to see Government’s positive response to

the Northern Way’s focus on the key policy areas that will

improve the North’s economic performance. In 2006/07,

a review of Northern Way priorities ensured a greater

focus on major projects that will have the most impact

across the North and three areas were prioritised for

activity – transport, innovation in industry and levering in

more private sector investment.

Following our ‘Performing Strongly’ rating in last year’s

Independent Performance Assessment (IPA), the

National Audit Office, working with the Agency, identified

several areas for improvement. The assessment was a

great opportunity for the Agency to take stock of

progress we have made and we have already begun to

implement changes to ensure that we are continually

striving for improvement.

A key focus for the Agency’s work for the coming year

will be delivering efficiency and value for money across

all of its activities, in line with central Government

targets, which will enable the Agency to release

resources for front line programmes. Enhancing our

approach to the evaluation of our projects and

programmes will also ensure that all of our decisions are

based on a robust evidence base.

It is vital that we have an efficient and effective

organisation in place to ensure the Agency is equipped

to deliver its part in the RES. Continuing to develop high-

quality people management practices and delivering on

our equality and diversity obligations will be an important

factor in this.

Many of the Agency’s achievements throughout the year

are included within this annual report, but I would like to

highlight the following:

• Key milestones reached in the region’s scientific

capabilities, including the opening of Daresbury

Science and Innovation Centre and Campus, the

Cockcroft Institute, and the launch of the National

Biomanufacturing Centre.

• The launch of the second Northwest Science Strategy,

which aims to position the region as an international

centre of excellence.

• The development of Business Link Northwest, the new

business support service for the region, designed to

increase the number of businesses and individuals

accessing business support across the Northwest.

• Confirmation of the BBC’s move to Salford, bringing

together several departments as the anchor tenant for

mediacity:uk.

• Helping to safeguard the future of the Vauxhall

plant at Ellesmere Port as the new Astra is secured for

the plant.

• The region working together to develop the Northwest

Climate Change Action Plan which highlights key

priorities for action and the economic opportunities

climate change presents.

• The launch of NorwePP, a public private partnership

between the Agency and Ashtenne Industrial Fund, a

critical tool in improving the performance of the

Agency’s property portfolio.

• Major developments in the region’s Higher Education

infrastructure, including the new University of Cumbria,

which opens its doors to students in September this

year, and a new campus and University Centre for

Burnley College.

• Construction commencing on the Nuclear Academy in

Cumbria, a world class centre of excellence for nuclear

skills development.

• The creation of the Blackpool Task Force, a crucial step

forward in securing Blackpool's future regeneration,

along with excellent progress being made on the

Central Seafront redevelopment.

• The most successful Open Golf Championship

ever staged in England, which attracted around

230,000 visitors.

• Significant progress made on the Kings Dock Arena

and Convention Centre in Liverpool, which has so far

attracted over 80 national and international events.

• The results of our latest Ipsos MORI research,

which revealed excellent trends in the perceptions

of England’s Northwest as a place to live, visit and

do business.

• Liverpool’s countdown to its European Capital of

Culture celebrations, which offers a unique opportunity

to showcase both Liverpool and the Northwest to the

UK and overseas.

Whilst excellent progress is being made in the region,

the coming year will be vital in maintaining this

momentum and ensuring that all of our partners – local,

regional and national - are delivering an improved

economy for the Northwest. I am determined to build

upon the region’s strong position and ensure that the

Agency leads the Northwest to even greater success.

I would like to sincerely thank those members of the

Board who will be leaving in December 2007. I have

valued their advice and guidance.

Steven Broomhead, Chief Executive

4

5

Operating Review

Key achievements against output indicators

The following section provides an overview of the

Agency’s performance during 2006/07 against the

indicators determined by the DTI for assessing and

comparing Regional Development Agency performance.

The Agency also publishes (as a separate document) an

Annual Performance Monitoring Report summarising its

key achievements during the year. This provides further

analysis of progress made against the objectives and

priorities of the 2006/07 Business Plan.

The Agency exceeded mid-point targets in each of the

ten headline and mandatory indicators. These are

detailed below:

Summary of performance

Key achievements

Target Range Achieved

Number of jobs created or safeguarded. 12,750 15,000 19,756

This target has been exceeded thanks to a number of large scale inward investment and economic

regeneration projects.

Target Range Achieved

Number of people assisted to get a job. 1,500 2,500 3,654

Target has been exceeded due mainly to Urban Regeneration programmes.

Target Range Achieved

Number of new businesses created/attracted to the region. 1,720 2,580 3,306

Target achieved mainly through Business Link operation.

Target Range Achieved

Number of businesses assisted to improve their performance. 16,800 25,200 23,952

Mid point target achieved mainly through Business Link operation and a series of successful Tourist Board projects in

the Region.

Target Range Achieved

Number of businesses within the region assisted to engage in

new collaborations with the UK knowledge base.750 1,250 1,341

Target achieved mainly through the Higher Education Innovation fund programme.

6

Operating Review (continued)

Target Range Achieved

Number of adults in the workforce achieving at least National

Vocational Skills Qualification Level 2 or equivalent.340 560 1,028

The Agency has exceeded its maximum target for the year.

Target Range Achieved

Public and private regeneration infrastructure investment levered.

Total £m

% private leverage

320

38%

540

62%

347

74%

Out-turn figure for overall £ investment is within target range. The proportion of private sector investment has

exceeded the target range.

Target Range Achieved

Hectares of brownfield land reclaimed and/or redeveloped. 245 335 299

Out-turn within the target range. NWDA remains a major contributor to the Government’s national

brownfield land target.

Target Range Achieved

Number of adults gaining basic skills. 825 1,375 1,908

The Agency has exceeded its maximum target for the year.

Target Range Achieved

Number of people assisted in their skills development. 10,000 15,000 25,793

Target greatly exceeded. Most productive year to date for skills assists. However through a more rigorous project

appraisal process the Agency is becoming more efficient at identifying the true delivery from projects and this has

contributed in part to the gap between forecast and actual delivery.

7

Key Activities 2006/07

Business

Developing an enterprise culture

The implementation of key transformational actions

within the Regional Economic Strategy (RES) has been a

main focus of the Agency’s business activity throughout

the year.

One critical project to get underway was the streamlining

and simplification of business support, and a key

milestone in this area was the introduction of Business

Link Northwest. The new service will provide a high-

quality, consistent and targeted service for businesses.

Importantly, it will address their needs and skills gaps

whilst also impacting positively on the regional economy

through encouraging business growth.

Promoting an enterprise culture, particularly amongst the

region’s young people, plays an important role in

nurturing future talent for the Northwest. During the year,

the Agency supported a number of initiatives to raise the

profile of enterprise at a local and regional level,

including ‘The Next Big Thing’, an event held as part of

National Enterprise Week, aimed at inspiring young

people to turn their business ideas into reality.

Knowsley was also named the Northwest regional

winner of the Enterprising Britain 2006 competition,

following its success in developing a grassroots

enterprise culture and reducing unemployment in the

borough from 22% to 4% over the past 20 years. As

part of the competition, the borough was awarded an

Agency grant to further stimulate enterprise activity.

With flexible working practices also proven to generate

significant returns for employers in terms of productivity

and reduced costs, this year saw the launch of the

Northwest Flexible Working Group, to encourage and

support this activity further in the region.

Recognising the important contribution that social

enterprise make to the regional economy, the Agency

has introduced an active programme of support for the

sector. Following the establishment of Social Enterprise

Partnerships in each sub-region, the Agency has

provided investment to take forward the development

and implementation of key action plans. These are

targeted at developing new mark opportunities for social

enterprise organisations and tackling the barriers faced

when bidding for contracts.

Growing key regional sectors

Support for key sectors with high growth potential,

including creative industries, biomedical, food and drink

and advanced engineering and materials, continues to

be a goal for the Agency.

Greater Manchester’s reputation as a hub for world-class

creative industries has been strengthened over the last

year, following the ongoing development of mediacity:uk

at Salford, another transformational action in the RES.

The development is set to employ 15,500 people and

add £200 million every year to the regional economy.

Central to the project is the BBC Trust’s intention to

move1,500 jobs from London to Salford, creating the

largest BBC presence outside of London and bringing

together several departments as the anchor tenant for

mediacity:uk.

The Agency’s intervention is placing the region at the

cutting edge of biopharmaceutical progress. Following a

£23 million investment by the NWDA and the Objective

One programme, the Liverpool School of Tropical

Medicine’s new Centre for Tropical and Infectious

Diseases has been officially opened. Having since

levered in a further $73 million from the Gates’

Foundation, the facility is attracting scientists from

around the world and will maintain the School’s position

as a leading research institute.

Another project which is adding to the region’s growing

importance in worldwide biotechnology is the National

Biomanufacturing Centre at Speke, which was also

opened this year. The £34 million centre, which was

made possible with funding from the NWDA, the

Objective One programme and the DTI, provides

expertise to support new and existing biotechnology

companies and is poised to lead the next wave of

biopharmaceutical development.

8

Operating Review (continued)

As part of the business simplification agenda, a new

organisation to support the food and drink sector in the

region has been established. Food Northwest, which

draws together the expertise of Northwest Food Alliance

and Northwest Fantastic Foods Partnership, will focus on

priority areas including market development, productivity

and sustainable farming and food.

The Agency is reinforcing the reputation of the region as

a major player in the aerospace sector, through

investment support for a major research and

development programme at BAE Systems, Warton. The

initiative forms part of the ASTRAE initiative, which aims

to put the UK at the heart of Unmanned Aerial Vehicle

(UAV) technology, and will ensure the Northwest is in a

strong position to exploit this emerging market.

Encouraging scientific excellence

The Northwest was the first region to recognise the

importance of science as a driver for economic growth

and is increasingly recognised as a centre of excellence

for scientific and medical research. Building on this

success, an important milestone was the launch of the

new Northwest Science Strategy, which aims to ensure

that the region can meet the science and technology

needs of regional businesses. Developed by the

Northwest Science Council, the new strategy reflects the

growing importance of science and R&D investment as a

key driver for economic growth.

Another scientific achievement was the opening of the

flagship Daresbury Science and Innovation Campus,

which received £50 million investment from the Agency,

and the launch of the Cockcroft Institute, the national

centre for accelerator science. The development of this

strategic national site reinforces Daresbury’s future as

one of the UK’s two premier science and innovation

campuses.

Driving forward sustainability

Climate change is a critical issue for the region and the

NWDA is working hard with its partners to address the

causes of climate change and respond to the £30 billion

opportunity that it presents British business over the next

ten years.

To mark the beginning of increased action in this area,

last year saw the launch of the region’s Climate Change

Action Plan, which highlights key priorities for action to

ensure the region is prepared for the challenges of a

changing climate.

With energy efficiency and waste disposal both major

issues for the region, the Agency is continuing to assist

Northwest businesses in reducing waste and managing

their resources more efficiently. Through the BREW

Northwest programme, the Agency is supporting

Environment Connect, a new service providing a single

point of contact for a variety of environmental business

services. The service will help Northwest companies

save £3 million every year through improved

environmental performance.

Reinforcing the important area of energy research and

development is the Joule Centre, an international centre

for energy research which has been developed by the

Agency and Northwest universities. Projects underway

include an investigation into the region’s available tidal

power resources.

Increasing competitiveness and investment

Foreign-owned companies gave the Northwest economy

a major boost in 2006/07 by investing in over 132 inward

investment projects, 40 more than the previous year, and

creating or safeguarding over 7,000 jobs, according to

figures released by UK Trade and Investment (UKTI). The

Agency supported UKTI in assisting 107 companies to

become new exporters and a further 155 to enter new

markets.

Capitalising on the increasing confidence in the

Northwest as an international business location, the

Agency has developed the Northwest Internationalisation

Strategy. The plan is an ambitious, integrated approach

to international trade and is set to further boost the

Northwest’s global profile.

Working in partnership, the Agency has also supported a

number of investment projects through the Selective

Finance for Investment scheme (SFI). Key projects

include a grant for Blackburn-based manufacturing

company PPE, enabling them to invest in state-of-the-art

machinery and streamline production.

9

Investing in workforce development

As the lead Regional Development Agency for

employment, skills and higher education, the NWDA

continues to drive forward a number of programmes to

build a skilled workforce relevant to the needs of

business and industry.

In July 2006, working with Business Link the Agency

secured the contract for the regional Skills Brokerage

Service delivered under the Train to Gain brand in the

Northwest. The service, designed to help businesses

identify their workforce training needs and link these with

training and learning providers, marks the beginning of a

new and more dynamic way of identifying

comprehensive solutions to the business and skills

requirements of employers.

The Leitch Review, published in December 2006,

identified a greater future emphasis on knowledge-

based jobs. In response to this, the Agency and its

partners are investing heavily to ensure that the region is

able to compete internationally and become a world

leader for skills.

Initiatives being pioneered in this area include the

£19 million Nuclear Academy in Cumbria, an NWDA-

funded project which will help to identify and improve

standards and training throughout nuclear industries

across the UK and will form part of the National Skills

Academy for Nuclear. With construction now underway,

the Academy is set to become a world-class centre of

excellence in terms of nuclear decommissioning and

energy production.

Delivering the skills required by priority sectors is

essential to support their growth. In the Northwest, the

Agency is working closely on the development of skills

academies for food and drink, construction,

manufacturing and financial services, which aim to tackle

skills shortages in these sectors. Additional support is

also being provided to ensure the important digital and

creative section is equipped to capitalise on Salford’s

mediacity:uk development.

Enabling Northern businesses to access world-class

knowledge remains a significant objective for the

Northern Way, which is driving forward the Northern

Leadership Academy, a £5 million project to strengthen

leadership across the North. The Academy has already

published its first set of principles of leadership

development, the first in a series to address the issues

and requirements facing leadership development in the

private, public and voluntary sectors.

Developing educational infrastructure

A number of significant projects have been supported by

the Agency throughout the year to develop greater links

between business and Higher Education (HE) and

encourage universities and colleges to play a larger role

in the regional economy. Key transformational actions for

skills development identified within the Regional

Economic Strategy (RES) have also taken major

steps forward.

A major development in this area includes the new

University of Cumbria, which opens its doors to students

in September 2007. The new university is expected to

take 15,000 students on opening day, a figure which will

rise to 20,000 in the next ten years, and will be critical to

retaining talent in the region.

Education in Lancashire has also received a significant

boost, following a £20 million investment by the Agency

and the University of Central Lancashire (UCLan) for a

new state-of-the-art campus and University Centre for

Burnley College. The investment will help to build a

stronger Higher Education framework for East Lancashire

by promoting enterprise and entrepreneurialism, as well

as making education provision more responsive to local

business needs.

Meanwhile, in Cheshire, construction on a £38 million

world-class education campus is underway, which will

transform education opportunities for 14 – 19 year-olds

in the area. Macclesfield Learning Zone will provide a

high quality education service to address the needs of

local businesses, as well as housing a flagship Centre of

Vocational Excellence for aerospace engineering.

10

Operating Review (continued)

Transforming the region

The Agency has made considerable progress throughout

the year to ensure that focused and integrated

regeneration plans are developed across the

Northwest which reflect regional and sub-regional

strategic priorities.

The regeneration of the region’s towns and cities

remains a priority in driving forward economic growth

and across the region’s urban areas. The Agency

continues to work with Urban Regeneration Companies

(URCs) in implementing master plans for the

transformation of their areas.

In Liverpool, investor demand is driving capital growth

faster than any other provincial city, not least due to the

high quality retail, leisure, office, residential and public

realm schemes which are transforming the city centre.

One such project is the regeneration of the Hope Street

area of the city, where a £2.9 million scheme, part-

funded by the Agency, has helped to lift the quality of

Liverpool’s cultural quarter.

East Manchester’s physical, economic and social

renewal continues, with a mid-term evaluation of New

East Manchester (NEM) activities showing that East

Manchester has ‘added value’ to the economic success

of the city centre over the past decade. NEM’s key

achievements to date include the construction of more

than 3,400 new homes – with a further 6,000 in the

pipeline – and the creation or safeguarding of more

than 3,000 jobs.

In Salford, plans to transform the Chapel Street corridor

to the city are taking shape, following Agency support to

regenerate land for development. The scheme, which

will be delivered by Central Salford URC, aims to

encourage new employment opportunities in, or near to,

deprived communities.

In Lancashire, the Agency is working with ReBlackpool

URC by providing strategic leadership to secure

Blackpool’s economic future. Key Agency-funded

projects completed or underway in the resort include an

upgrade of the Central Seafront area, supported by a

£12 million NWDA investment, and an additional

£9 million funding for the creation of urban park along

the gateway into the resort. In addition, the Agency and

partners have established a regeneration taskforce for

Blackpool, with a clear focus on examining the

economic, social and environmental development plans

for the area.

Through West Lakes Renaissance, the Agency is

implementing a number of programmes to regenerate

communities, encourage new business opportunities

and enhance skills in West Cumbria and Furness. In

Workington and Maryport, a £14.5 million investment by

the Agency will provide key public realm improvements,

expand Maryport Harbour and examine the development

potential of the former Corus steelworks. In Barrow,

plans for the £60 million redevelopment of Barrow Port

are progressing well, with key site acquisitions having

taken place this year.

In Cheshire, a £4 million investment by the Agency is

facilitating a number of environmental improvement and

infrastructure schemes to create new business and

employment opportunities within Ellesmere Port’s

Economic Development Zone. The investment is

expected to attract other public and private sector

development and local employment initiatives.

Providing economic leadership

The NWDA has been using its strategic influence to

secure a future for West Cumbria through the

development of a spatial master plan, which will act as a

blueprint for future investment priorities in the area.

Jointly funded between the Agency and the Nuclear

Decommissioning Authority, the plan is designed to

counter the effect of job losses through

decommissioning and aims to establish West Cumbria

as a centre for energy technology and innovation.

The Agency also continued to strengthen its relationship

with Sub-Regional Partnerships (SRPs) throughout the

year to ensure the Regional Economic Strategy (RES) is

supported at a sub-regional and local level. Key action

plans are now in place for each SRP, which identify the

economic priorities for improving the economic

performance of each sub-region.

11

The three city regions of Greater Manchester, Merseyside

and Central Lancashire are key growth drivers of the

Northwest, with the potential to lift the long-term

economic growth of the region. Activity to deliver the

second round of City Region Development Plans is

already well underway, following their submission to the

Northern Way in September 2006.

In other areas of work, the Northern Way is also

continuing to pioneer initiatives to improve employability

and provide targeted training support for the

unemployed, helping to deliver skills required by

employers. Liverpool and Birkenhead are the latest

areas to benefit from a programme to drive down the

number of people claiming incapacity benefit and

improve career prospects.

Strengthening rural communities

Supporting the ongoing growth of the rural economy

remains a priority for the Agency, which is working to

provide new economic opportunities for rural

communities and businesses.

In Cheshire, the NWDA-supported Rural Enterprise

Programme has already exceeded all of its targets ahead

of schedule, investing over £10 million in the local

economy, supporting the establishment of 115 new

businesses and creating or safeguarding over 1,200 jobs.

The region’s Market Town Initiative continues to deliver

social and community regeneration by raising rural living

standards and attracting investment, with over £11

million invested by the NWDA to date. In Barnoldswick

(Lancashire) the creation of an enterprise centre will

create 20 new jobs and lever in a further £440,000

public funds, while in Millom (Cumbria) a new network

centre is providing a range of facilities to support local

enterprise and start-up businesses.

Across the region, a valuable service assisting rural

businesses with their development proposals has

received a further 3 years investment by the NWDA. The

Rural Planning Facilitation Service, which will create 200

new jobs, 45 new farm-based enterprises and 50 other

businesses, will also lever in an additional £1.5 million of

private sector investment.

Determining priorities

Improving the region’s transport and land and property

infrastructure remains an investment, planning and

lobbying priority for the Agency, which continues to use

its strategic influence to ensure that regional spatial,

transport and housing priorities are aligned to the

Regional Economic Strategy (RES).

Working in partnership with the North West Regional

Assembly and Government Office for the North West

(GONW), the NWDA is building on advice set out to

government in the Regional Funding Allocations, a key

document which sets out agreed housing, transport and

economic development priorities for the regions.

Significant progress was the announcement of the

Department for Transport’s 10-year transport programme

for the Northwest, which saw schemes including

Manchester’s Metrolink expansion and the Mersey

Gateway receive vital government support.

Intra-regional connectivity, as well as links to other

regions in the UK, Europe and the world, remains vital in

improving access for businesses, people and goods.

Through the £6.5 million Air Services Development Fund

Alternative Measures programme, the Agency is helping

to support growth, attract new carriers and improve

international connectivity at Liverpool, Manchester,

Blackpool and Carlisle airports.

Creating high quality business locations

Key progress has been made by the Agency throughout

the year on a number of strategically important

employment sites across the region, creating jobs and

attracting significant private sector investment.

Infrastructure works at the £5.9 million Agecroft

Commerce Park, a former Salford colliery site, are now

complete, with several major companies having already

relocated their business to the site. In Greater

Manchester, Kingsway’s growing reputation as a

business location has been reinforced, with the majority

of the first phase of the £350 million project expected to

be allocated over the next 12 months.

12

Operating Review (continued)

Luneside East’s redevelopment has taken a visible step

forward following demolition works and the drawing up

of detailed proposals for the final development of the

site. The project will bring much-needed affordable

housing to the area, as well as contribute to Lancaster’s

riverside commercial and leisure offer.

Work is also underway at key employment sites at Edge

Lane, Liverpool, where a £4.6 million NWDA investment

is supporting the development of Liverpool Innovation

Park. The improvements to the Park, which aim to attract

investment from businesses in the science, technology,

digital, creative and IT sectors, are expected to generate

1,000 jobs for the area. In other improvements to the

area, the NWDA-owned former Littlewoods building is

currently being transformed into apartments, commercial

space and a hotel, as part of a £65 million scheme by

property experts Urban Splash.

Widnes Waterfront’s regeneration also continues,

following a £5.6 million investment by the Agency to

bring over eighty hectares of derelict land back into

productive commercial and tourism use, creating 2,700

new jobs and levering in an additional £70 million

investment from the private sector.

To enable the Agency to focus on further opportunities to

bring forward strategic employment sites, in December

2006 the public-private partnership NorwePP was

launched by the NWDA and Ashtenne Industrial Fund

(AIF) to manage and develop the Agency’s portfolio of

commercial property. The joint venture will maximise the

growth potential of the portfolio, particularly in providing

accommodation for companies to create employment

within the region.

Developing cultural appeal

As one of the most artistic and culturally dynamic

regions in Europe, England’s Northwest is becoming

increasingly recognised at both national and

international level.

As Liverpool begins the countdown to its European

Capital of Culture celebrations, the Agency is working

closely with the Liverpool Culture Company on marketing

the city, and the Northwest, to the UK and overseas.

Helping to maximise the impact of Capital of Culture are

complementary programmes being run by the sub-

regional Tourist Boards, including Cheshire’s Year of

Gardens and Taste Lancashire ’08.

Liverpool’s reputation for culture and the arts was

reinforced as the Liverpool Biennial, supported by the

Agency, continued to go from strength to strength with

over 400,000 visitors to the event in 2006 – an increase

of 50,000 on 2004.

Elsewhere in the region, the world’s first international

festival of original new work, Manchester International

Festival, is expected to attract thousands of local,

national and international visitors. The Agency is a major

sponsor of the Festival, which was launched in 2006

with a series of trailblazer events.

Strategic tourism leadership

With the Northwest’s tourism industry valued at almost

£11 billion, it is essential to ensure that the region is well

placed to take advantage of the opportunities presented

by the market’s changing nature. To reinforce the

region’s competitive edge, this year the Agency

published a reviewed Tourism Strategy and developed a

regional Business Tourism Strategy. The region’s

reputation for excellence was bolstered further when the

Northwest went on to win a record-breaking four Gold

accolades in the national Enjoy England Awards for

Excellence 2007.

Encouraging visitor and investment to the region and

showcasing the very best of the Northwest’s offer

continues to pay dividends. An Ipsos MORI survey,

commissioned by the Agency, revealed upbeat trends in

the perceptions of the region as a place to live, work,

visit and do business, with 35% of British people living

outside the region associating the Northwest with

success, a 13% increase from 2001.

13

Marketing the region

The Agency is continuing to exploit a number of themes

with clear market potential in order to capitalise on the

region’s distinct range of experiences and to encourage

visitors.

The eyes of the golfing world fell on Hoylake in July

2006, as the Open Championship returned to the region,

showcasing England’s Northwest to an international

audience and generating over £4.2 million of coverage in

UK newspapers alone. Agency-supported initiatives to

capitalise on the economic benefits of the event include

a visitor guide providing tourist information for the

200,000 visitors to the Open, and an ‘England’s Golf

Coast’ marketing campaign.

Visitor marketing campaigns have been launched to

highlight the region’s cultural assets and natural

environment. The Agency challenged London’s position

as the arts capital of the UK by profiling some of the

best artistic work from the region at ‘Exposed’, a one-off

showcase event at Manchester Square, London, which

attracted major figures in the arts and culture scene.

With the Lake District at the heart of the Beatrix Potter

biopic, Miss Potter, the Agency has also focused

attention on promoting the Northwest’s stunning natural

environment and encourage visitors to discover the

beauty of the area, and the region.

The Northwest continues to be successful in attracting

major events, helping to project a positive image of the

region to an international audience. Major events

secured for 2007 include the WTF World Taekwondo

Qualification Tournament and the Dunlop British Open.

Improving the visitor experience

With estimates suggesting that the heritage tourism

market could be worth as much as £3 billion to the

region, support is essential to capture the economic

benefits. The £1 million Heritage Tourism Improvement

Scheme, funded by a partnership including the NWDA

and English Heritage, has encouraged heritage

attractions to improve educational activities, disabled

access and interpretive facilities.

On Merseyside, efforts to spearhead the second phase

of Mersey Waterfront Regional Park have stepped up

following additional investment of almost £18 million

from the NWDA and the European Regional

Development Fund. Ambitious plans include the

creation of Liverpool Riverlands urban park, a water-

based recreation centre at Crosby, a comprehensive

resort redevelopment at New Brighton and a new ferry

terminal at Pier Head.

Elsewhere, the Agency is working with the regional

tourist boards on developing tourism products to grow

the visitor economy. Key proposals include masterplans

for Chester Zoo, Blackpool and Lowther Castle and

Gardens.

Investing in communities and the environment

With over £24 billion of public money spent each year on

regeneration and economic renewal in the Northwest,

the ‘Places Matter!’ programme is working to raise the

quality of the region’s build environment. A regional

design review service supporting public and private

sector developers in driving up quality forms part of the

scheme, which is being led by RENEW Northwest.

Developing regeneration skills also forms a key part of

RENEW Northwest programme. Working alongside the

Academy for Sustainable Communities and local

partners, the organisation is helping to identify

regeneration skills gaps through Fusion – The Pennine

Lancashire Learning Laboratory.

14

Governance

The Board

Board Members, including their occupations and

interests are listed below. The full Register of Board

Members Interests is available from the Agency’s

Headquarters in Warrington. Details of transactions

with such entities in the financial year are disclosed

in note 31.

Bryan Gray MBE DL (appointed April 2002)

Bryan Gray is Chairman of the Northwest Regional

Development Agency (NWDA). He is also:

• Chairman of Baxi Technologies

• Vice President of Micropower, promoting new energy

• Non-executive director of Energetix plc.

• Pro Chancellor of the University of Lancaster

• Honorary Professor at the University of Nottingham

• A member of the National Learning & Skills Council

• A member of the Liverpool Capital of Culture Board

• Trustee of National Museums Liverpool

• A member of Liverpool Cathedral Council

• Director of Culture Northwest

• Non-executive Chairman of Westmorland Ltd

• A member of Lake District National Park Authority

• Non-executive Chairman of Urban Splash

Hotel company

He received the Prince of Wales Ambassador Award for

the Northwest in July 2006.

Professor Sir Martin Harris CBE DL(appointed December 2001)

Deputy Chairman of the NWDA. Chancellor of the

University of Salford. Chair of USS Limited and

Manchester Knowledge Capital. Director of the Office for

Fair Access, which promotes fair access to higher

education.

Vanda Murray OBE (appointed April 2006)

Deputy Chair elect of the NWDA from 1 January 2007.

Over 20 years’ experience at a senior management level

across a range of industries in the UK, Europe, Asia and

the USA. Currently holds non-executive roles with

Carillion plc and the Cheshire Building Society. She is

also non-executive Chair of Eazyfone, a mobile phone

recycling company. She was awarded an OBE for

services to Industry and to Export in 2002.

David Brockbank (appointed December 2004)

Chairman of Cumbria Vision, the private-sector led

organisation responsible for the economic development

of Cumbria, and a member of Lancaster University

Council and Cumbria Tourist Board.

Joe Dwek CBE (appointed December 2003)

Executive Chairman and Chief Executive of Bodycote

International Plc from 1972 until his retirement in 1998.

Formerly Chairman of the Mersey Basin Campaign and

the Healthy Waterways Trust and a council member of

environmental charity, ENCAMS. Currently:

• Chairman of Envirolink

• Director of Jerome Group Plc, Penmarric Plc, Opal

Property Group Ltd and Mercury Recycling Ltd.

• Chairman and Chief Executive of Worthington

Group Plc.

He is also a member of the Board of the DTI’s

Environmental Innovation Advisory Group.

15

Peter Hensman DL (appointed December 2004)

A chartered accountant and engineer who has spent

most of his career in the general and financial

management of manufacturing companies. Executive

Director of a small group of companies involved in

tourism, leisure and property in Cumbria. Also Vice

Chairman of Cumbria Rural Enterprise Agency and a

Non-executive Director of Furness Building Society.

Chairs Cumbria Community Foundation and is a

member of the Kendal Regeneration Steering Group.

Dr Pauleen Lane CBE (appointed December 2001)

Elected member (Labour) of Trafford Metropolitan

Borough Council. A civil engineer who has worked in

engineering practice, Dr Lane currently lectures in

geotechnics and computing at the University of

Manchester.

She is also a Non-executive director and Deputy Chair of

English Partnerships.

Dave McCall (appointed December 2003)

Regional Secretary of the Transport and General Workers'

Union since 1996 and Chair of the Northwest Trades

Union Congress (TUC) since 2002. He has been a

full-time trade union official since 1980 and served on

the Northwest Industrial Development Board. He served

on the governing body of Manchester Metropolitan

University. Currently chairperson of Migrant Workers

North West.

Councillor John Merry (appointed December 2004)

Leader (Labour) of Salford City Council. He is a Board

Member of the National Learning & Skills Council and

the Greater Manchester Learning & Skills Council. He

has previous membership of various organisations and

committees with an education and training remit. He

has been a full-time Councillor since 1990 with previous

career experience in retail and sales. In addition to being

a Councillor, he has held office at the local branch of the

Labour party and canvassed on its behalf.

Professor John Moverley OBE(appointed December 2004)

Chief Executive of the Royal Agricultural Society for

England. He was an invited member of the All Party

Rural Economy Group, founded in the House of Lords.

He is a member of the Regional Steering Group for the

Department for Food and Rural Affairs (Defra) and a

Theme Champion for Sustainable Food and Farming.

He is also a former Principal of Myerscough College

in Lancashire.

Cllr Marie Rimmer CBE (appointed December 2002)

Elected member (Labour) of St Helens Metropolitan

Borough Council. She is a Governor of Cowley

Language College and a member of the Management

Board of Red Bank Community Home.

She was the Chair of the former Association of

Metropolitan Authorities Housing Committee and served

on the European Committee of the Northwest's Social

Affairs Committee. She was also the Chair of the

Northwest Coalfields Communities Campaign.

She has been politically active on behalf of the Labour

party since 1969, and has held office at branch,

constituency and district party level.

Anil Ruia OBE JP LLB (appointed December 2001)

Director of Wrengate Limited. The company imports,

distributes and converts textiles. Also a Director of

Warren Tea Limited in India, which grows, manufactures

and sells tea.

A Magistrate, Mr Ruia also holds a number of positions

which contribute to the economic regeneration of the

Northwest including Chairman of the Northwest

International Trade Forum, Deputy Chair of Manchester

Knowledge Capital and a Non-executive Director of

Granada Television.

16

Governance (continued)

Brenda Smith (appointed December 2001)

Group Managing Director of Granada Television and

Managing Director of Granada Studios Plc until May

2004. She was also Deputy Chair of Granada Television

Ltd until July 2006.

Board member of Liverpool Vision also she has chaired

the NW Regional Marketing Forum since December

2002. Member of Tourism Forum, Non-executive

Director of Manchester Airport Aviation Services, a

Non-executive Director of AFM Lighting Ltd and Chair of

Skillset London Forum.

Councillor Mike Storey CBE(appointed December 2001)

Longest serving elected member (Liberal Democrats)

of Liverpool City Council. He is the Head Teacher

of Plantation Community Primary School in

Halewood, Merseyside.

Also Director of the Capital of Culture Company,

Liverpool Arena and Convention Centre and a Trustee of

St Georges Hall. He was a founder member of the

Mersey Partnership and is Liverpool City Council

Executive Member for Regeneration.

Professor Maureen Williams(appointed December 2002)

Professor Maureen Williams is the Chief Executive and

founder of the Merseyside Development Foundation.

She is an Honorary Fellow and Visiting Professor of

Sociology (Governance) at Liverpool John Moores

University. She is a Non-executive director of Liverpool

Primary Care Trust, the Mersey Partnership and a council

member of Greater Merseyside Learning and Skills

Council. She is currently Vice Chair of the North West

Region European Partnership where she leads on

Energy and Climate Change.

Professor Williams remains a trustee of various local and

national charities and a senior expert/consultant with the

Council of Europe. She is co-founder of Community

North West and a former Chair of the Big Lottery

Fund’s North West Community and Voluntary Sector

Funding Programme.

Board Meetings and Committees

The Agency’s Board met 11 times during the year. There

are two formal committees to the Board as follows:

• The Remuneration and Appointments Committee

which, during the year to 31 March 2007, convened on

5 occasions, and

• The Audit Committee which also convened on

5 occasions.

There are seven Sub Committees to the main Board,

which met regularly throughout the year:

Enterprise, Innovation and Skills

Infrastructure

Health and Social Inclusion

Environment

Marketing, Communications and Tourism

LSC Liaison Committee

SRP Strategic Liaison Committee

Executive Management Board

Executive Management Board (EMB) is made up of

Executive Directors and Directors from the NWDA and is

Chaired by the Chief Executive. EMB meet approximately

twice per month and its roles and responsibilities include

determining policy with Board approval where

appropriate; achieving and maintaining operational

integration across the Agency and to achieve and

maintain communication flows between management

and staff.

Rural Advisory Forum

The Rural Advisory Forum was established to advise the

Agency on rural matters and particularly to ensure that

the Agency’s activities, programmes and projects reflect,

where appropriate, the new RES, and Rural Delivery

Framework and the region’s rural priorities as determined

by the Regional Rural Priorities Board.

17

Annual General Meeting

The Agency’s Annual General Meeting was held on

4 October 2006 at the Manchester International

Conference Centre. The conference outlined the key

activities of the Agency and its partners in the preceding

year. The Chief Executive and Chairman presented their

future plans for the Agency and the region.

The 2007 Annual General Meeting will be held on

18 October 2007.

Code of Best Practice

Board Members are governed by a Code of Best

Practice, which amongst other things outlines:

• The Board’s requirement to demonstrate Public Service

Values and their accountability for public funds.

• Relationship with Central Government.

• The role of the Chairman and Chief Executive.

• Corporate and individual responsibilities of

Board Members.

• Handling conflicts of interest.

The Agency has ensured adherence to the Code through

the robust and thorough monitoring and recording

systems that are in place. Board Members have declared

interests at particular Board discussions as appropriate.

Staff have followed a similar requirement in compliance

with the Agency’s Code of Conduct.

Further information concerning any of the above can be

obtained from the Agency’s Warrington Headquarters.

Equality and Diversity

The Agency has a commitment to equality and diversity

across its operating remit. All employees and Board

members are expected to promote this commitment in

the ways in which they interact with contractors, service

providers and partners. A copy of the Agency’s policy

on equality and diversity can be found on its website

www.nwda.co.uk .

Within this framework the Agency has a statutory duty in

respect of gender, disability and race discrimination and

harassment; and to promote equality and opportunity.

Freedom of Information Act and the

publication of information

The Freedom of Information Act became fully operational

on 1 January 2005. The Act applies to some 100,000

public authorities, including England’s nine Regional

Development Agencies. The Act provides greater access

to all types of recorded information held by public

authorities and imposes obligations on them to disclose

information, subject to a range of exemptions.

Section 19 of the Act requires public authorities to adopt

and maintain a publication scheme which relates to the

publication of information by the authority and in

accordance with its publication scheme. Eight of the

nine English RDAs agreed to a collective publication

scheme which outlines the information that will be

published by each of those RDAs. The Northwest

Regional Development Agency took responsibility for the

development of the RDAs model publication scheme

and the Information Commissioner approved this in

October 2002. The publication scheme is available at

www.nwda.co.uk.

The Agency received 31 requests for information

under the Act between 1 April 2006 and

31 March 2007.

18

Environmental Policy Statement

Our aim is to contribute towards the delivery of

sustainable economic development in the region and

ensure that environmental objectives are integrated

into business objectives of the NWDA, our partners

and suppliers.

We are committed to reducing our environmental

footprint, with an emphasis on reducing our contribution

to climate change, through the ongoing measurement

and continual improvement of our environmental

performance. We will conduct our own activities and

operations to reflect best environmental practice.

Specifically we will:

• Comply with all relevant UK, European and International

environmental legislative and regulatory requirements;

• Achieve ISO 14001 accreditation by November 2007;

• Demonstrate a high-level commitment to environmental

best practice under the guidance of the Board

Environment Sub Committee;

• Ensure through our policies, programmes, projects and

key stake holders, the Agency influences environmental

sustainability across the economic agenda;

• Quantify the NWDA’s environmental impact in relation

to energy usage and waste production and establish

annual reduction targets & publicise our environmental

performance annually;

• Implement continuous improvement through an

environmental action plan;

• Ensure that all projects and programmes we fund

incorporate environmental aspects in their development

and are appraised for their environmental impacts

through sustainable development appraisal;

• Develop and implement a sustainable

procurement policy;

• Promote environmental awareness amongst employees

through specific induction training, topic specific

training and in house media;

• Ensure good management practice by repeating an

Environmental Audit of the organisation every two years

with the next audit to be undertaken in 2008;

• Review and revise this policy statement on an

annual basis.

Steven Broomhead, Chief Executive

July 2007

19

Directors Report

Statutory background

The Northwest Regional Development Agency (‘the

Agency’) was established under the provisions of the

Regional Development Agencies Act 1998. It came into

existence on 14 December 1998, following Parliamentary

approval of the Regional Development Agencies Act

1998 and the appointment of Board Members. The

Agency is an Executive Non-Departmental Public Body

(NDPB) sponsored by the Department of Trade and

Industry (DTI).

The Agency became fully operational on 1 April 1999

when it took over the regional activities of English

Partnerships and the Rural Development Commission

and the SRB Challenge Fund formerly administered by

Government Office for the North West.

A number of other activities have subsequently been

transferred into the Agency, notably the business of

Inward Limited, the Northwest Tourist Board, the

Selective Finance for Investment Programme, the

development of skills and employment, policy and

business support and delivery mechanisms, and the

North West Business Link organisations.

Statement of the Agency’s and Chief

Executive’s responsibilities

Under section 14 of the Regional Development Agencies

Act 1998 the Agency is required to prepare a statement

of account for each financial year in the form and on the

basis determined by the Secretary of State, with the

consent of Treasury. The Financial Statements are

prepared on an accruals basis and must give a true and

fair view of the Agency’s state of affairs at the year end

and of its income and expenditure, total recognised

gains and losses and cash flows for the financial year.

In preparing the Financial Statements the Agency is

required to:

• Observe the Accounts Direction issued by the

Secretary of State, including the relevant accounting

and disclosure requirements, and apply suitable

accounting policies on a consistent basis;

• Make judgments and estimates on a reasonable basis;

• State whether applicable accounting standards have

been followed, and disclose and explain any material

departures in the Financial Statements;

• Prepare the accounts on the going concern basis,

unless it is inappropriate to presume that the Agency

will continue in operation.

The Accounting Officer for the Department of Trade and

Industry has designated the Chief Executive as the

Accounting Officer of the Northwest Regional

Development Agency. His responsibilities as Accounting

Officer include responsibility for the propriety and

regularity and value for money of the public finances;

the keeping of proper records and advising and

informing the Board of financial considerations. These

requirements are set out in the ‘‘Non-Departmental

Public Bodies’ Accounting Officer’s Memorandum”

issued by the Treasury and published in

Government Accounting.

The Agency and the Chief Executive are also responsible

for ensuring that there are appropriate controls over any

publication of the Financial Statements, including the

publication of the audit certificate on the Agency’s

website and in other electronic forms.

So far as the Accounting Officer is aware, there is no

relevant audit information of which the entity’s auditors

are unaware. The Accounting Officer has taken all the

steps that he ought to have taken to make himself aware

of any relevant audit information and to establish that the

entity’s auditors are aware of that information.

Management Statement and Financial

Memorandum

The Secretary of State has issued the Agency with a

Management Statement and Financial Memorandum

setting out the financial framework under which the

Agency should operate. The Agency has complied in all

material respects with the terms of this memorandum

during the course of financial year.

Results for the year and review of activities

The net expenditure for the year after taxation was

£396.3m (2006: £368.8).

The Agency’s total expenditure for the year amounted to

£462.5m (2006: £421.7m), of which £406.7m (2006:

£357.5m) was spent on delivering programme activities.

The full results for the year are contained in the Agency’s

financial statements set out below.

20

Directors Report (continued)

The Agency continued to work with Yorkshire Forward

and ONE North East to develop and establish the

Northern Way Growth Region, stretching from Liverpool

to Hull and northwards to the Borders. The aim is to

boost the economic regeneration and productivity of the

whole of the North of England, reduce regional

disparities, and tackle social and economic exclusion by

linking areas of opportunity and need.

The Agency continued to develop the concept of Sub-

Regional Partnerships. The SRPs are being delivered

through funded Action Plans which include initiatives to

strengthen delivery capacity.

Significant changes in fixed assets

During the course of the financial year, the Agency

entered into a partnership with Ashtenne Industrial Fund

Limited Partnership in relation to its investment property

portfolio. The Agency transferred £132.8 million of

property in Liverpool and Cumbria into a Limited

Partnership. In return for transferring the properties, the

Agency has received two loan notes to the value of the

transfer value which will be repaid over the duration of

the partnership. The management of the properties will

be carried out by Ashtenne Asset Management Limited

and the Agency will continue to receive a share in rental

income and any uplift in value of the properties.

Future developments

During the financial year 2007/08 the responsibility for

the delivery of the 2007/13 European Development Fund

Programme will transfer from the Government Office

North West to the NWDA. The programme will

deliver 3756 million additional support to the

Northwest economy, and is expected to commence in

October 2007.

The Agency will also assume responsibility from DEFRA

for the delivery of elements of the Rural Development

Programme for England during 2007. This particular

programme is the Government’s implementation of the

EU Rural Development regulation which covers the

period from 2007 to 2013.

The parts of the programme to be delivered by the

NWDA to the Northwest Region include

1) The competitiveness of farming and forestry sectors,

and

2) Rural business diversification and quality of life.

It is anticipated that the programme will commence

during the second half of 2007.

NWDA’s new regional Business Link service launched in

April 2007, replacing the existing sub-regional activity.

The service will deliver an independent, client driven

information, diagnostic and brokerage service, which will

facilitate a step change in the rate of new business

transformation and growth of existing businesses in

the Northwest.

Board members

Board Members are appointed by the Secretary of State.

They include Local Authority, Trade Union, Community

and Private Sector representatives. Their corporate

responsibilities are detailed in the Code of Best Practice

for the Board of the Northwest Regional Development

Agency, which is a public document available from the

Agency’s offices.

Bryan Gray MBE DL, Chairman (appointed 1 April 2002)

Professor Sir Martin Harris CBE DL, Deputy Chairman

(appointed December 2001)

Vanda Murray OBE Deputy Chair elect

(appointed April 2006)

David Brockbank (appointed December 2004)

Joe Dwek CBE (appointed December 2003)

Peter Hensman DL (appointed December 2004)

Dr Pauleen Lane CBE (appointed December 2001)

Dave McCall (appointed December 2003)

Cllr John Merry (appointed December 2004)

Professor John Moverley OBE

(appointed December 2004)

Cllr Marie Rimmer CBE (appointed December 2002)

Anil Ruia OBE JP LLB (appointed December 2001)

Brenda Smith (appointed December 2001)

Cllr Mike Storey CBE (appointed December 2001)

Professor Maureen Williams

(appointed December 2002)

21

Brief biographies for the Board Members are shown in

the Governance section of this document.

Board Members are contracted to carry out two days

work per month on behalf of the Agency. The Chairman

is contracted for three days per week and the Deputy

Chairman and Deputy Chair elect one day per week.

The Agency maintains a Register of Board Members’

Interests, which is available on request by contacting the

Chief Operating Officer at the Agency’s offices at

Renaissance House, Warrington. Members declare their

interests to the Board in any transactions involving

relevant organisations. Related party transactions relating

to Board Members and senior members of staff are

detailed further in note 31.

Board representation on the Audit Committee and

the Remuneration and Appointments Committee was

as follows:

Audit Committee

Peter Hensman

Marie Rimmer (Chair)

Joe Dwek

Dave McCall

Maureen Williams

Remuneration and Appointments Committee

Bryan Gray (Chairman)

Dave McCall (Vice Chairman)

Anil Ruia

Martin Harris

Brenda Smith

Peter Hensman assumed responsibility as Chair of Audit

Committee from 1 April 2007. Marie Rimmer was the

Chair from 1 April 2006 to 31 March 2007.

Audit Committee

The Board is independently advised by an Audit

Committee whose role is to provide the Board with

advice and information to undertake a governance and

supervisory role as required in accordance with

Corporate Governance Best Practice. The Terms of

Reference of the Audit Committee, including its role and

the authority delegated to it by the Board, has been

made available to the public on the Agency’s website.

The Audit Committee met five times during 2006/07 to

receive assurance on the Agency’s systems of corporate

governance, risk management and internal control. The

Committee also received regular reports from Baker Tilly

as independent Internal Auditors. The range of Audit

Committee activity carried out during 2006/07 has

provided positive assurance about the Agency’s

governance and control environment and has supported

the Accounting Officer in signing a satisfactory

Statement on Internal Control for the year.

The Committee was active in managing the governance

agenda by requiring updates of Agency policies to

ensure they remained at the leading edge of best

practice, including risk management arrangements,

Financial Regulations and the Scheme of Delegations,

whistle-blowing and anti-fraud arrangements.

Remuneration and Appointments

Committee

The work of the Remuneration and Appointments

Committee is detailed in the Remuneration Report

contained in pages 24 to 29 of this report.

Employment of disabled persons

The Agency is committed to providing equal

opportunities for all and will make reasonable

adjustments to working arrangements to meet special

needs. We will work towards an environment and culture

where everyone is encouraged and supported to

develop their full potential regardless of individual

characteristics, which may limit a person’s opportunities

in life.

Provision of information to and consultation

with employees

The Agency is fully committed to effective and open

communication and consultation with its employees.

This is achieved through a variety of means including a

Staff Consultative and Negotiation Committee involving

the Public and Commercial Services (PCS) and Prospect

Trade Unions together with staff representatives; a Health

and Safety Committee; and staff events to communicate

key issues and receive feedback.

22

Directors Report (continued)

Better payment practice code

The Agency is committed to the Better Payment

Practice Code and aims to pay 95% of all undisputed

invoices either within 30 days or the terms agreed with

the supplier.

In 2006/07 the Agency did not quite achieve this target,

paying 92% (2006: 89%) of invoices within 30 days. The

Agency’s ability to pay suppliers within the target

timescale has improved on the previous year, and the

Agency will seek to continue this improvement in

2007/08 with the aim of achieving its prompt

payment target.

Audit services

The Comptroller and Auditor General is appointed by

statute to audit the Northwest Regional Development

Agency, and reports to Parliament on the truth and

fairness of the annual Financial Statements and the

regularity of income and expenditure. The following

costs have been incurred in relation to services provided

by the Comptroller and Auditor General:

Audit Services £74,500

IPA fee £100,000

The Comptroller and Auditor General also has statutory

powers to report on economy, efficiency and

effectiveness with which the Agency has used its

resources. In November 2003 the Comptroller and

Auditor General published the ‘Success in the Regions’

report on how the Agencies and the departments

work together.

This and other reports issued by the Comptroller and

Auditor General can be found on the National Audit

Office Website at www.nao.org.uk.

Independent Performance Assessment

The NWDA scored 20 points out of a possible 24. The

NAO determined that the Agency was performing

strongly, the top ranking available.

The assessment recognised key strengths of the Agency,

including the very high quality and commitment of

staff, strong partnership working, effective leadership,

strong financial control and excellent record of

achieving outputs.

The report also praised the review and development of

the new Regional Economic Strategy (RES) which it cited

as a ‘strong process which demonstrates a shared vision

and ambition for the region’.

Statement on the Agency’s policy for

conserving energy, reducing waste and

minimizing the release of greenhouse gases

In 2006/07 the Executive Management Board and the

Environment Sub-committee approved ISO14001 as the

Environmental Management System (EMS) for the

Agency. Accreditation of ISO 14001 by November 2007

has been incorporated into the Agency 2007/08

Business Objectives. At the heart of ISO14001 is the

production of an Environmental Policy. In February

2007, the Board approved a revised NWDA

Environmental Policy.

Through the EMS process the Agency’s Significant

Environmental Aspects have been reviewed and will

result in a series of actions that will enable the Agency to

better quantify its resource use and environmental

impact. Included in such actions will be the development

of detailed monitoring data on business travel, paper use

and recycling rates as well as energy consumption

which will contribute towards a comprehensive Carbon

Management plan.

23

The Agency has continued to support and deliver a

Business Resource Efficiency and Waste (BREW)

programme with key partners. Through the single

programme the Agency has developed and supported a

number of projects that cut across socio economic and

environmental areas. Natural Economy North West is a

three year programme with Natural England that will

undertake research and practical projects to promote

and develop the economic opportunities from our

natural environment.

In addition, the Agency continues to support

programmes aimed at developing the environmental

technologies sector including transforming waste into

products. The Agency continues to fund business

support programmes to assist regional businesses in

reducing their greenhouse gas emissions, adapting to

climate change, reducing their energy consumption

and support them in achieving excellence in

corporate responsibility.

The Northwest Regional Development Agency’s

Environmental Policy is laid out on page 18. The Policy

will be reviewed and updated as part of the Agency’s

Environmental Audit.

Steven Broomhead

Chief Executive Officer

24

Remuneration Report

This report for the year ended 31 March 2007 is

produced by the Board on the recommendation of

the Remuneration and Appointments Committee and

deals with the remuneration of the Chair, Chief

Executive, Board members and Executive Directors

who have influence over the decisions of the Agency

as a whole.

Remuneration and AppointmentsCommittee

The remuneration of the Board is set by the Department

of Trade and Industry.

The remuneration figure for the Board is reviewed every

year by DTI in line with the recommendations of the

Senior Salaries Review Board.

The Remuneration and Appointments Committee, which

includes five members of the Board, met five times

during the course of the year to advise the Chairman on

the remuneration of the Chief Executive Officer (CEO)

and to advise the CEO on Directors' remuneration.

In reaching its recommendations, the Remuneration and

Appointments Committee is to have regard to the

following considerations:

• the need to recruit, maintain and motivate suitably

able and qualified people to exercise their

different responsibilities;

• regional/local variations in labour markets and their

effects on the recruitment and retention of staff;

• the Government's inflation target.

Remuneration Policy

Performance pay for the Chief Executive is determined

by the Chairman on the recommendation of the

Remuneration and Appointments Committee.

Performance is measured against targets determined by

the Chairman following consultation with the Director of

the Government Office. These are subject to regular

performance monitoring during the year. The amount of

the performance award can be up to a maximum of 20%

of salary. In 2006/07 the targets related to the financial

objectives of the Agency; the performance targets set by

Government; the objectives for the Agency’s lead role

with DfES/DWP, improving project management,

developing sub-regional partnership arrangements and

improving the organisation’s overall effectiveness.

Performance pay of the senior management team is

determined by the Chief Executive on advice from the

Remuneration and Appointments Committee.

Performance is measured against targets set individually

for each Director by the Chief Executive and the amount

of the performance award can be up to 10% of salary.

Service contracts

All Board members have been appointed on a fixed-term

contract and except for the Chairman, Deputy Chairman

and Deputy Chair elect are contracted to carry out two

days work per month (three days per week for the

Chairman and one day per week for the Deputy

Chairman and Deputy Chair elect) on behalf of

the Agency.

Please see the emoluments table for details of the terms

of appointment of the Board members. Board members

appointments are made in accordance with the

Commission of Public Appointments Code.

There is no provision in place for the early termination of

appointment of Board Members. The following

sections provide details of the remuneration and pension

interests of Board members, Chief Executive and

Senior Managers.

25

Part of the Remuneration Report to be audited

Emoluments of Board members

The emoluments of Board Members can be analysed as follows:

Name Period of Total Total

Appointment Salary Pension 2007 2006

From To £ £ £ £

Bryan Gray (Chairman) Apr 2002 – Dec 2008 79,358 16,615 95,973 85,724

Professor Sir Martin Harris* Dec 2001 – Dec 2008 16,631 - 16,631 16,305

Vanda Murray** Apr 2006 – Dec 2011 10,394 - 10,394 -

David Brockbank Dec 2004 – Dec 2007 8,316 - 8,316 8,153

Joe Dwek Dec 2003 – Dec 2009 8,316 - 8,316 8,153

Peter Hensman Dec 2004 – Dec 2010 8,316 - 8,316 8,153

Dr Pauleen Lane Dec 2001 – Dec 2007 8,316 - 8,316 8,153

Dave McCall Dec 2003 – Dec 2009 8,316 - 8,316 8,153

John Merry Dec 2004 – Dec 2007 8,316 - 8,316 8,153

Professor John Moverley Dec 2004 – Dec 2007 8,316 - 8,316 8,153

Marie Rimmer Dec 2002 – Dec 2008 8,316 - 8,316 8,153

Anil Kumar Ruia Dec 2001 – Dec 2007 8,316 - 8,316 8,153

Brenda Smith Dec 2001 – Dec 2008 8,316 - 8,316 8,153

Mike Storey Dec 2001 – Dec 2007 8,316 - 8,316 8,153

Professor Maureen Williams Dec 2002 – Dec 2008 8,316 - 8,316 8,153

* Deputy Chairman

** Deputy Chair elect from 1 January 2007

Emoluments of the Chief Executive and senior managers

The Chief Executive Steven Broomhead and all other members of the senior management team are employed under

permanent employment contracts. The Chief Executive and senior managers work for the Agency full-time.

For the Chief Executive and senior management team early termination, other than for misconduct, will be under the

terms of the Principal Civil Service Pension Scheme (PCSPS). The terms of this scheme come under the terms of the

Civil Service Compensation Scheme.

26

Remuneration Report (continued)

The emoluments of the Chief Executive and senior managers can be analysed as follows:

Name Salary for

relevant 2007 2006

period Bonus Benefits Pension Total Total

£ £ £ £ £ £

Steven Broomhead

Chief Executive 128,347 22,649 13,869 27,693 192,558 177,972

Bernice Law

Executive Director of

Operations 107,518 10,420 1,262 26,944 146,144 140,036

Ian Haythornthwaite

Executive Director of

Corporate Resources 102,763 9,959 4,328 25,856 142,906 130,235

Helen France

Executive Director

of Development and

Partnerships

(to 11th August 2006) 35,341 3,684 1,492 9,060 49,577 130,387

Mark Hughes

Executive Director of

Enterprise and Innovation 101,319 7,551 3,748 25,525 138,143 125,790

Peter White

Executive Director

of Infrastructure 97,617 8,585 2,806 24,652 133,660 9,320

Benefits in kind

Benefits in kind for the senior managers consist of lease cars provided by the Agency. There are no loans

made to Directors.

Board members received no benefits in kind.

Pension benefits

Pension benefits of Board members

No Board Members are eligible for pension contributions, performance related pay or any other taxable benefit as a

result of employment with the Agency with the exception of the Chairman.

27

Pension benefits of the Chairman

With the approval of DTI, a ‘by analogy’ pension scheme has been put in place for the Chairman with contribution

rates and benefits which are identical to the Principal Civil Service Pension Scheme but which are funded directly by

the Agency. The Agency is not permitted to pay these contributions to a personal pension scheme or other

pension plan provider. On retirement, payment of the Chairman's pension will be the responsibility of the Agency,

underwritten by DTI.

Real

increase

Real Real Pension Lump CETV CETV in CETV

increase increase at sum at at at as funded

in in lump 31 March 31 March 31 March 31 March by

pension sum 2007 2007 2006 2007 employer

£000 £000 £000 £000 £000 £000 £000

Bryan Gray

Chairman 0 – 2.5 0 – 2.5 2.5 – 5 0 – 2.5 50 68 14

The arrangement shadows the benefits provided under the Premium scale of the Civil Service Pension Plan.

The arrangement provides benefits to the present Chairman and one former Chairman of the Northwest

Regional Development Agency. A full actuarial valuation was carried out as at 31 March 2007 by a qualified

independent actuary.

The major assumptions of the actuary were:

Financial Assumptions 31 March 2007 31 March 2006

The inflation assumptions 2.75% 2.5%

The rate of increase in salaries 4.3% 4%

The rate of increase for pensions in payment and deferred pensions 2.75% 2.5%

The rate used to discount scheme liabilities 4.6% 5.4%

The effect of accrual during year £000’s £000’s

The current service cost(net of employee contributions) 15 16

Any past service costs 0 0

Gains and losses on any settlements and curtailments 0 0

The interest cost 5 4

Actuarial gains and losses during year £000’s %age*

Experience losses(gains) 2 1.1%

Effect of changes in demographic and financial assumptions 24 17.1%

Total actuarial losses(gains) 26 18.2%

*Here the amounts are expressed as a percentage of the present value of the scheme liabilities as at the balance sheet date

28

Remuneration Report (continued)

31 March 2007 31 March 2006

Liability (£000’s)

Actives 104 62

Deferreds 0 0

Pensioners 36 32

Dependent pensioners 0 0

Total Present value of the scheme liabilities 140 94

Liability calculation

£000’s £000’s

Present value of scheme liability at start of year 94 67

Current Service cost (net of employee contributions) 15 16

Overnight increase in liabilities (change in real return) 0 7

Employee contributions 2 1

Interest cost 5 4

Actuarial Losses (gains) 26 1

Less Benefits paid (2) (2)

Less Net Individual Transfers Out 0 0

Present Value of Scheme Liabilities at end of year 140 94

Pension benefits of Chief Executive and senior managers

Steven Broomhead, Bernice Law, Ian Haythornthwaite, Mark Hughes are all members of PCSPS Premium Scheme.

Peter White is a member of the PCSPS Classic Scheme.

Real

increase

Real Real Pension Lump CETV CETV Employee in CETV

increase increase at sum at at at contributions as funded

in in lump 31 March 31 March 31 March 31 March and by

pension sum 2007 2007 2006 2007 transfers in employer

£000 £000 £000 £000 £000 £000 £000 £000

Steven Broomhead 0-2.5 N/A 50-55 N/A 740 778 2.5-5 19

Bernice Law 0-2.5 N/A 50-55 N/A 770 819 2.5-5 27

Ian Haythornthwaite 0-2.5 N/A 40-45 N/A 538 553 2.5-5 4

Helen France 0-2.5 0-2.5 30-35 100-105 535 511 0-2.5 5

Mark Hughes 0-2.5 N/A 0-5 N/A 19 39 2.5-5 16

Peter White 0-2.5 5-7.5 5-10 20-25 135 181 0-2.5 39

29

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits

accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any

contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or

arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a

scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the

benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just

their service in a senior capacity to which disclosure applies.

Real increase in CETV

This reflects the increase in CETV effectively funded by the employer. It takes account of the increase in

accrued pension due to inflation, contributions paid by the employee (including the value of any benefits

transferred from another pension scheme or arrangement) and uses common market valuation factors for the

start and end of the period.

Non Cash remuneration

During the year there has been no element of non cash remuneration.

Compensation paid, significant awards to former senior managers

During the year there was no compensation paid or significant award to former senior managers.

Amounts payable to third party for services as a senior manager

There are no amounts payable to a third party for services as a senior manager.

Payments made for loss of office

During the year there were no payments made for loss of office to senior managers.

Bryan M Gray Steven Broomhead

Chairman Chief Executive

30

Statement on Internal Control

Scope of Responsibility

As Accounting Officer, I have responsibility for

maintaining a sound system of internal control within the

Northwest Regional Development Agency. This system

supports the achievement of the Agency’s policies, aims

and objectives, set by the Board, whilst safeguarding its

assets and the public funds that it utilises, for which I am

personally responsible, in accordance with the

responsibilities assigned to me in Government

Accounting and the Agency’s Financial Memorandum.

The NWDA is a Regional Development Agency classified

as a non-departmental public body of the sponsoring

Department of Trade and Industry. The Secretary of State

is accountable to Parliament for the activities and

performance of the Agency. Operational responsibility

for monitoring the Agency’s activities rests with the DTI.

The NWDA provides comprehensive half yearly reports

on performance against targets to Government Office

North West (GONW) for onward transmission to the DTI.

The NWDA has corporate responsibility for ensuring that

it fulfils the aims and objectives set by the Secretary of

State and for promoting the efficient and effective use of

its resources. The NWDA is committed to the pursuit of

economy, efficiency and effectiveness and constantly

seeks to employ best practice in accordance with our

Corporate Values. As Accounting Officer, I establish the

NWDA’s corporate and business plans in line with the

DTI’s wider strategic aims and the Regional Economic

Strategy (RES). I advise the Board on the Agency’s

performance compared with its aims and objectives and

ensure that its governance responsibilities can be

discharged in accordance with established guidelines

and criteria.

The Purpose of the System of

Internal Control

The system of internal control is designed to manage

risk to a reasonable level rather than eliminate the risk of

failure to achieve policies, aims and objectives. It can

therefore only provide reasonable and not absolute

assurance of effectiveness.

The system of internal control is based on a continuous

process designed to identify and prioritise the risks to

the achievement of the Agency’s policies, aims and

objectives, to evaluate the likelihood of those risks being

realised and the impact should they be realised, and to

manage them efficiently, effectively and economically.

This process has been in place for the year ended 31

March 2007 and up to the date of approval of the annual

report and accounts and accords with HM Treasury

guidance.

Capacity to Manage Risk

The Board sets the Agency’s policy and attitude towards

risk. The Audit Committee, on behalf of the Board,

determines the effectiveness of those policies and

procedures, basing its assurance on the reporting of

External and Internal Audit as well as the Head of Risk.

The Executive Management Board, led by the Chief

Executive, is responsible for the operation of the

Agency’s corporate risk management process. The Risk

and Performance Management Group supports the

Executive Management Board and Audit Committee.

The corporate risk management process has been

refreshed and reviewed by the Head of Risk, Executive

Management Board and Audit Committee.

The Risk and Control Framework

The main processes which the Agency has in place for

identifying, evaluating and managing risk are:

(a) Risk Management Strategy

Our risk management strategy is updated annually and

approved by the Audit Committee. The risk management

strategy sets out the Agency’s risk philosophy, its

strategy, and risk cycle including risk identification,

assessment, how it is addressed and reviewed.

31

(b) Risk Registers

Risk registers are maintained where appropriate

throughout the Agency, whether this is by project,

function or directorate. The most significant risks are

elevated through the Risk and Performance

Management Group onto the Corporate Risk Register.

This is updated quarterly.

(c) Review of Risk Registers

All risk registers are updated at least quarterly. Within

projects they are used as a key business tool and will be

updated at each project meeting. Where controls are not

considered to be working effectively, further action is put

in place. The Executive Management Board and Audit

Committee review the Corporate Risk Register on a

quarterly basis and make changes as appropriate.

Information and Communication

The Board meets eleven times per annum and receives

progress reports on significant projects, a monthly

Finance Director’s report on the Agency’s financial

position, and the Agency’s quarterly performance report

that summarises progress against key outcome targets.

The Executive Management Board meets fortnightly to

make key decisions, agree actions and specific initiatives

and to review financial and operational performance.

Key decisions made and actions agreed are

communicated to managers via a monthly Core Briefing

session and cascaded to all staff through regular

team meetings.

Specific policies and procedures are approved by the

Executive Management Board and delivered to the

relevant teams through induction training, team

meetings, and via email and the Intranet. These address

issues such as project appraisal and monitoring, financial

management and control, procurement and legislation,

for example the Freedom of Information Act.

Project Management System

The Agency has continued to develop its project

management procedures and capacity during this year.

The Systems and Process Improvement Programme,

SAPIP, has remained the basis of that work and its

employment has been underpinned by regular training

for staff.

The Agency has also made SAPIP available to our

partner URCs and has conducted a roll out training

programme to support them.

Significant Internal Control Issues

Any significant internal control issues will be dealt with

by Executive Management, with advice where

appropriate, from the Head of Risk, Internal and

External Audit.

There were no significant control issues during the year.

Review of Effectiveness

As Accounting Officer, I have responsibility for reviewing

the effectiveness of the system of internal control. My

review of the effectiveness of the system of internal

control is informed by the work of the Internal Auditors

and the Executive Directors within the Agency who have

responsibility for the development and maintenance of

the internal control framework, and comments made by

the External Auditors in their management letter and

other reports. The Board and the Audit Committee have

advised me on the implications of the result of my review

of the effectiveness of the system of internal control, and

a plan to address weaknesses and ensure continuous

improvement of the system is in place.

Steven Broomhead July 2007

Accounting officer

32

THE CERTIFICATE AND REPORT OF THE

COMPTROLLER AND AUDITOR GENERAL TO THE

HOUSES OF PARLIAMENT AND THE NORTHWEST

REGIONAL DEVELOPMENT AGENCY

I certify that I have audited the financial statements of

the Northwest Regional Development Agency for the

year ended 31 March 2007 under the Regional

Development Agencies Act 1998. These comprise the

Income and Expenditure Account, the Balance Sheet, the

Cashflow Statement and Statement of Recognised Gains

and Losses and the related notes. These financial

statements have been prepared under the accounting

policies set out within them. I have also audited the

information in the Remuneration Report that is described

in that report as having been audited.

Respective responsibilities of the Agency,

Chief Executive/Accounting Officer

and Auditor

The Agency and Chief Executive as Accounting Officer

are responsible for preparing the Annual Report, the

Remuneration Report and the financial statements in

accordance with the Regional Development Agencies

Act 1998 and the directions made thereunder by the

Secretary of State and for ensuring the regularity of

financial transactions. These responsibilities are set out in

the Statement of the Agency’s and Accounting

Officer’s Responsibilities.

My responsibility is to audit the financial statements and

the part of the remuneration report to be audited in

accordance with relevant legal and regulatory

requirements, and with International Standards on

Auditing (UK and Ireland).

I report to you my opinion as to whether the financial

statements give a true and fair view and whether the

financial statements and the part of the Remuneration

Report to be audited have been properly prepared in

accordance with the Regional Development Agencies

Act 1998 and the directions made thereunder by the

Secretary of State. I report to you whether, in my

opinion, certain information given in the Annual Report,

which comprises the Chairman’s Statement, the Chief

Executive’s Review, the Directors Report, the Operating

Review and the unaudited parts of the Remuneration

Report, is consistent with the financial statements. I also

report whether in all material respects the expenditure

and income have been applied to the purposes intended

by Parliament and the financial transactions conform to

the authorities which govern them.

In addition, I report to you if the Agency has not kept

proper accounting records, if I have not received all the

information and explanations I require for my audit, or if

information specified by HM Treasury regarding

remuneration and other transactions is not disclosed.

I review whether the Statement on Internal control

reflects the Agency’s compliance with HM Treasury’s

guidance, and I report if it does not. I am not required to

consider whether this statement covers all risks and

controls, or form an opinion on the effectiveness of the

Agency’s corporate governance procedures or its risk

and control procedures.

I read the other information contained in the Annual

Report and consider whether it is consistent with the

audited financial statements. I consider the implications

for my report if I become aware of any apparent

misstatements or material inconsistencies with the

financial statements. My responsibilities do not extend to

any other information.

Basis of audit opinion

I conducted my audit in accordance with International

Standards on Auditing (UK and Ireland) issued by the

Auditing Practices Board. My audit includes examination,

on a test basis, of evidence relevant to the amounts,

disclosures and regularity of financial transactions

included in the financial statements and the part of the

Remuneration Report to be audited. It also includes an

assessment of the significant estimates and judgments

made by the Agency and Accounting Officer in the

preparation of the financial statements, and of whether

the accounting policies are most appropriate to the

Agency’s circumstances, consistently applied and

adequately disclosed.

I planned and performed my audit so as to obtain all the

information and explanations which I considered

necessary in order to provide me with sufficient evidence

to give reasonable assurance that the financial

statements and the part of the Remuneration Report to

be audited are free from material misstatement, whether

caused by fraud or error, and that in all material respects

the expenditure and income have been applied to the

33

purposes intended by Parliament and the financial

transactions conform to the authorities which govern

them. In forming my opinion I also evaluated the overall

adequacy of the presentation of information in the

financial statements and the part of the Remuneration

Report to be audited.

Audit opinion

In my opinion:

• the financial statements give a true and fair view, in

accordance with the Regional Development Agencies

Act 1998 and the directions made thereunder by the

Secretary of State, of the state of the Northwest

Regional Development Agency’s affairs as at

31 March 2007 and of its net expenditure for the

year then ended;

• the financial statements and the part of the

Remuneration Report to be audited have been properly

prepared in accordance with the Regional

Development Agencies Act 1998 and the directions

made thereunder by the Secretary of State; and

• information given within the Annual Report, which

comprises the Chairman’s Statement, the Chief

Executive’s Review, the Directors Report, the Operating

Review and the unaudited parts of the Remuneration

Report, is consistent with the financial statements.

Audit opinion and Regularity

In my opinion, in all material respects the expenditure

and income have been applied to the purposes intended

by Parliament and the financial transactions conform to

the authorities which govern them.

Report

I have no observations to make on these financial

statements.

John Bourn

Comptroller and Auditor General

National Audit Office

157-197 Buckingham Palace Road

Victoria

London

SWIW 9SP

18 July 2007

34

Financial Statements

The agency is now required to follow the accounting formats dictated by the FReM. As a result Grant In Aid is now

required to be shown as financing and reported on the Balance Sheet rather than the I&E statement. Because of this

change the I&E Statement now shows a negative net expenditure taken to reserves. This is funded by the Grant In

Aid, contained within the reserves on the Balance Sheet. This is purely a result of a technical accounting adjustment.

Income & Expenditure account

For the year ended 31 March 2007 Note 2007 2006

Restated

£000 £000

Income

Small Business Service funding 375 1,106

European funding 5,926 6,294

Coalfield and other government grants 9,145 2,461

Rents and maintenance charges 9,563 11,810

Claw-back of grant and contributions 12,236 4,157

Proceeds from disposal of Operating Assets - 1

Proceeds from disposal of Investment Properties 7,957 8,987

Proceeds from disposal of Investments 4,100 -

Proceeds from disposal of Development Assets 1,436 8,728

Northern Way income 8,349 3,567

Other income 3,235 1,515

Total Income 62,322 48,626

Expenditure

Grants paid for programme expenditure – public sector 2 175,175 152,695

Grants paid for programme expenditure – private sector 2 190,644 177,776

Non-grant programme expenditure 2 40,834 27,026

Salaries and wages 6 20,137 17,841

Other administrative costs 3 19,520 16,723

Book value of Operating Assets disposed 2 10

Book value of Investment Properties disposed 6,848 8,154

Book value of Investments disposed 2,000 -

Book value of Development Assets disposed 775 7,746

Asset valuation write-down – Investments 529 3,180

Asset valuation write-down – Development Assets 15,109 11,666

Asset valuation write-back – Investments (956) (925)

Asset valuation write-back – Development Assets (7,606) -

Movements in provisions 21 (581) (340)

Bad debts and movements in provision for bad and doubtful debts 96 195

Total Expenditure 462,526 421,747

Net expenditure on continuing operations (400,204) (373,121)

Interest payable 4 (29) -

Interest receivable 5 3,957 1,573

Notional cost of capital 9 (5,402) (6,838)

Net expenditure on ordinary activities (401,678) (378,386)

Taxation 10 - 2,737

Net expenditure after tax (401,678) (375,649)

Reversal of notional cost of capital 9 5,402 6,838

Net expenditure taken to reserves (396,276) (368,811)

All activities are from continuing operations.

Net expenditure is financed by Grant in Aid as explained in accounting policy note 1.

The notes on pages 39 to 63 form part of these accounts.

35

Statement of recognised gains and losses

For the year ended 31 March 2007

2007 2006

Restated

£000 £000

Revaluation on Investment and Development Assets 29,497 4,725

Actuarial (loss)/gain on FRS17 pension scheme (26) (1)

Gains and losses recognised for the year 29,471 4,724

36

Financial Statements (continued)

Balance sheet

As at 31 March 2007

Note 2007 2006

Restated

£000 £000

Fixed Assets

Intangible Operating Assets 11 462 482

Tangible Operating Assets 12 3,319 2,619

Investment Properties 13 - 95,018

Investments 14 23,870 19,643

Investments in Joint Ventures and Associates 15 2,277 -

Long-term Loans 16 109,960 -

139,888 117,762

Current Assets

Development Assets 17 88,034 94,581

Debtors 18 38,208 21,963

Cash at bank and in hand 58,702 19,370

184,944 135,914

Creditors: Amounts falling due within one year 19 (176,182) (127,661)

8,762 8,253

Creditors: Amounts falling due after more than one year 20 (20,901) (17,609)

Provisions For Liabilities And Charges 21 (12,749) (978)

Total Assets Less Total Liabilities excluding Pension Liability 115,000 107,428

FRS17 Pension Liability (see Remuneration Report) (140) (94)

Total Assets Less Total Liabilities 114,860 107,334

Reserves

General Reserve 22 20,133 14,866

Revaluation Reserve 23 63,261 33,764

Grant in Aid Reserve 24 31,466 58,704

114,860 107,334

These financial statements were approved by the Board on 12th July 2007.

Bryan M Gray Steven Broomhead

Chairman Chief Executive

37

Cash flow statement

For the year ended 31 March 2007

2007 2006

Restated

£000 £000

Net Cash Outflow from Operating Activities (359,334) (335,500)

Returns on Investments and Servicing Of Finance

Interest Received 3,957 1,573

Interest Paid (29) -

Taxation

UK Corporation Tax paid - (11)

Capital Expenditure and Financial Investment

Purchase of Fixed Operating Assets (1,905) (736)

Purchase of Investment Properties (297) (1,379)

Purchase of Investments (6,259) (8,950)

Proceeds from disposal of Operating Assets - 1

Proceeds from disposal of Investment Properties 7,957 8,987

Proceeds from disposal of Investments 4,100 -

Proceeds from disposal of Development Assets 1,436 8,728

Repayment of Loan Note 12,800 -

Net Cash Outflow before Financing (337,574) (327,287)

Financing

Grant in Aid received 369,000 305,000

EU financing for assets 7,638 11,873

Coalfields financing for assets 268 3,035

Increase in Cash

39,332 (7,379)

Net liquid funds at 1 April 2006 19,370 26,749

Net liquid funds as at 31 March 2007 58,702 19,370

38

Financial Statements (continued)

Reconciliation of net operating expenditure to net cash outflow from operating activities

2007 2006

Restated

£000 £000

Net expenditure on continuing operations (400,204) (373,121)

Additions to Development Assets (21,541) (19,867)

Decrease/(Increase) in debtors (16,245) 7,604

Adjustment for capital debtors 10,508 -

Increase in creditors and provisions 63,630 44,912

Depreciation and amortisation 1,335 1,461

Environmental liability provision increase - (340)

Transfer from General Reserve EU funded assets (2,624) (5,867)

Transfer to Grant in Aid Reserve - 2,231

Actuarial loss on FRS17 pension scheme (26) (1)

European advance funding for BIS - (4,618)

Loss/(profit) on disposal of Fixed Operating Assets 2 9

Loss/(profit) on disposal of Investment Properties (1,109) (833)

Loss/(profit) on disposal of Investments (2,100) -

Loss/(profit) on disposal of Development Assets (661) (982)

Investments valuation write-down 529 3,180

Development Asset valuation write-down 17,734 11,657

Investments Valuation write-back (956) (925)

Development Asset valuation write-back (7,606) -

Net cash outflow from operating activities (359,334) (335,500)

39

Notes to the financial statements

1. Accounting policies

1.1 Basis of Accounting

The Financial Statements of the Northwest Regional Development Agency have been prepared in a form directed by

the Secretary of State for Trade and Industry, with the approval of H M Treasury, in accordance with the Regional

Development Agencies Act 1998. The Financial Statements have been prepared as set out in Treasury guidance

under the modified historical cost basis as explained in the sub-paragraphs below and in accordance with applicable

Accounting Standards.

Compliance with SSAP 19 "Accounting for Investment Properties" requires departure from the requirements of the

Companies Act 1985 relating to depreciation and an explanation of the departure is given below.

1.2 Change in Accounting Policy

With effect from the 2006-2007 reporting period the FReM requires non-departmental public bodies to account for

Grants in Aid received as financing because they are regarded as contributions from a controlling party which gives

rise to a financial interest in the residual interest of NDPBs. This is a change in accounting policy from earlier periods

when such items were recorded as income. The effect of this change on the certified 2005-06 accounts and the

impact on results of the current year is shown below.

At 31 March 2007 Impact of At 31 March

without applying adopting 2007

new policy new policy (restated)

£000 £000 £000

Government Grant Reserve 224,553 (224,553)

European Funding Reserve 17,484 (17,484)

Income and Expenditure Reserve (9,089) 9,089

General Reserve 20,133 20,133

Revaluation Reserve 63,261 63,261

Grant in Aid Reserve 31,466 31,466

232,948 (118,088) 114,860

At 31 March 2006 Impact of At 31 March

as previously adopting 2006

stated new policy (restated)

£000 £000 £000

Government Grant Reserve 204,553 (204,553)

European Funding Reserve 9,526 (9,526)

Income and Expenditure Reserve (9,089) 9,089

General Reserve 14,866 14,866

Revaluation Reserve 33,764 33,764

Grant in Aid Reserve 58,704 58,704

204,990 (97,656) 107,334

40

Notes (continued)

1. Accounting policies (continued)

1.3 Basis of Consolidation

The Agency holds a number of investments in other subsidiary and associate undertakings. No consolidated financial

statements are presented on the grounds that there is no material difference between the Agency’s own financial

statements and those prepared on a consolidated basis.

1.4 Intangible Operating Assets

Intangible Operating Assets consisting of software licences are valued at amortised historic cost, which is not

materially different from amortised replacement cost.

They are capitalised where the cost exceeds £500 on a grouped basis where appropriate.

1.5 Tangible Operating Assets

Tangible fixed assets are valued at depreciated historic cost, which is not materially different from depreciated

replacement cost.

Assets are capitalised where the cost exceeds £500 on a grouped basis where appropriate.

1.6 Investment Properties

The portfolio of industrial and commercial investment properties held at any one time is treated in such a way that

surpluses and deficits on revaluation of industrial and commercial properties are netted off. Any overall write-down of

these properties to open market value, and subsequent adjustments thereto, are accounted for annually and

separately identified in the Income & Expenditure Account. Any overall surplus on revaluation of these properties to

open market value, and subsequent adjustments thereto, are credited to the revaluation reserve after eliminating the

overall accumulated unrealised deficit, as originally charged, by revaluation adjustment, to the Income and Expenditure

Account.

In accordance with SSAP 19, no depreciation is provided in respect of investment properties. This departure from the

requirement of the Companies Act 1985 for all properties to be depreciated is, in the opinion of the Board, necessary

for the Financial Statements to give a true and fair view in accordance with applicable accounting standards as

properties are included in the Financial Statements at their open market value.

Depreciation is only one of the many factors reflected in the annual valuation of the properties and the amount

attributed to this factor by the valuers cannot reasonably be separately quantified.

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

1.7 Investments

Loan investments are shown at cost and net of provision for amounts considered doubtful and of write-offs for

amounts considered irrecoverable. Provision has been made for all loans where recovery appears doubtful. No loan

is written off until the impossibility of recovery is beyond doubt. Approval from the DTI is obtained for any write-off in

excess of £250,000.

Returns on loan investments are shown at market value over and above the value of the loan.

Movements arising on the revaluation of investments are reflected in the revaluation reserve, except for impairments

and reductions in value below historical cost, which are reported in the income and expenditure account.

41

1. Accounting policies (continued)

1.8 Development Assets

Development Assets, consisting of land and buildings, are shown at the lower of current replacement cost and net

realisable value, any reductions in carrying value being written off to the Income & Expenditure Account. Movements

arising on the revaluation of development assets in excess of historical cost are reflected in the revaluation reserve.

Acquisitions and disposals of Development Assets are accounted for on the date of legal completion.

Valuations are carried out in accordance with best practice as contained in the Statement of Asset Valuation Practice

and Guidance Notes (4th Edition) published by the Royal Institute of Chartered Surveyors.

A valuation of the whole portfolio was carried out as at 31st December 2006, by King Sturge, International Property

Consultants. This valuation is not materially different to the values at 31 March 2007.

1.9 Depreciation and amortisation

Depreciation and amortisation is provided to write off the replacement cost of intangible and tangible fixed assets over

their anticipated useful lives on a straight line basis at the following annual rates:

Owned property 50 years

Leasehold buildings with less than 25 years to run Period of lease

Office furniture, fittings and equipment 5 years

Computer equipment 3 years

Software licences 3 years

1.10 Pension Costs

Employees of the Agency participate in the following defined benefit schemes: Principal Civil Service Pension Scheme

(PCSPS) and the English Partnerships Pension Scheme (EPPS). These are multi-employer schemes in which it is

impossible to identify the share of the underlying assets and liabilities relating to the Agency. Employer contributions

to these schemes are accounted for in the period to which they relate.

The ‘by analogy’ scheme is for Chairs past and present with rules equivalent to those of PCSPS. The arrangement is a

UK-based benefit promise made by the employer, providing benefits at retirement and on death-in-service. The

arrangement is unfunded and the employer pays benefits as and when they arise. Further details are provided in the

remuneration report.

The scheme is subject to regular valuations by independent, professionally qualified actuaries. These determine the

level of contributions required to fund future benefits.

Differences between actual and expected returns on assets during the year are recognised in the Statement of

Recognised Gains and Losses, together with differences arising from changes in actuarial assumptions.

1.11 Government Grants

The Agency’s activities are funded primarily by Grants in Aid provided by the Department of Trade and Industry for

specified types of expenditure. Grants in Aid used to finance activities and expenditure which support the statutory

and other objectives of the Agency are treated as financing and are credited to the Grant in Aid Reserve as they are

regarded as contributions from a controlling party.

Grant relating to capital expenditure used to acquire specific capital items is credited to Grant in Aid Reserve.

42

Notes (continued)

1. Accounting policies (continued)

1.12 European Grants

The Agency’s activities are funded in part by European Funding for specified types of expenditure. European Funding

Grants receivable of a revenue nature are credited to the Income & Expenditure Account in the year to which they

relate. European Funding Grants in respect of capital expenditure are credited to the General Reserve and released to

the Income & Expenditure Account either over the expected useful life of the asset for assets that are depreciated or,

upon disposal or loss in value, for assets that are not depreciated.

1.13 Deferred Taxation

Full provision has been made for deferred tax liabilities arising from timing differences between the recognition of

gains and losses in the Financial Statements and their recognition in the tax computation. In accordance with FRS 19

a deferred tax asset is only recognised if there is sufficient evidence that it is likely to be recoverable at the balance

sheet date.

1.14 Foreign Currency Transactions

Transactions in foreign currencies are recorded in sterling at the rates prevailing at the date of transaction. Resulting

exchange gains and losses are taken to the Income & Expenditure Account.

1.15 Leases

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

The Agency does not hold any finance leases.

2. Analysis of programme expenditure by key driver

Total

expenditure

recorded in

I & E

Account

2007

£000

Business 115,048

Skills & Education 7,164

People & Jobs 101,173

Infrastructure 85,309

Quality of Life 50,901

Regional Research 390

Legacy 46,668

406,653

The new Regional Economic Strategy in place for 2006/07 has resulted in seven themes being created. These are

new for 2006/07 and it is not possible to provide direct comparisons with 2005/06.

43

3. Other administration costs

2007 2006

£000 £000

Professional costs 3,944 2,535

Marketing and PR 2,483 2,787

Estate management 4,245 2,950

Non-recoverable VAT 11 469

Office costs 2,375 2,216

Operating lease rentals 1,544 1,436

Other staff costs 922 715

IT and communication 1,410 965

Travel and subsistence 915 805

Depreciation and amortisation 1,335 1,461

Contributions to Joint Ventures 161 311

External auditors’ remuneration – statutory audit 75 73

– IPA audit 100 -

19,520 16,723

4. Interest payable

2007 2006

£000 £000

Other interest 29 -

5. Interest receivable

2007 2006

£000 £000

Interest on Loan Notes – NorwePP (see Note 26) 2,027 -

Corporation tax interest - 23

Bank interest receivable 1,900 1,549

Rural loan interest - 1

Other interest 30 -

3,957 1,573

44

Notes (continued)

6. Salaries and wages

2007 2006

£000 £000

Board Members

Board members salaries 206 197

Chair’s pension contributions 20 20

Social security costs 16 16

242 233

Staff

Salaries and wages 14,002 11,727

Pension costs 2,742 3,059

Social security costs 1,215 1,151

Redundancy costs 574 828

18,533 16,765

Temporary staff

Recruitment agency staff 977 340

Seconded staff salary costs 385 503

1,362 843

Total salaries and wages 20,137 17,841

7. Staff numbers

The average number of staff employed by the Agency during the year (including all seconded staff) was 402 (2006:

378). The figures do not include recruitment agency staff.

2007

2007 Senior 2007 Seconded 2007 2006

Department Management Staff In Staff Total Total

Chief Executive’s Office 1 10 - 11 21

Human Resources - 12 - 12 -

Operations 1 112 1 114 90

Enterprise and Innovation 1 117 5 123 100

Development and Partnerships - - - - 91

Policy and Performance - 30 - 30 -

Infrastructure 1 31 1 33 -

Corporate Resources 1 78 - 79 76

5 390 7 402 378

During the year there was a directorate restructuring which resulted in the following changes:

The work and responsibilities of Development and Partnerships was allocated to Operations, Enterprise and

Innovations and the new directorates of Policy and Performance and Infrastructure.

Human Resources directorate is now shown separately from Chief Executive’s office.

45

8. Pension arrangements

Principal Civil Service Pension Scheme (PCSPS)

The PCSPS scheme is an unfunded multi-employer defined benefit scheme but NWDA is unable to identify its share

of underlying assets and liabilities. The scheme actuary valued the scheme as at 31 March 2003. Details can be

found in the resource accounts of the Cabinet Office: Civil Superannuation (www.civilservice-pensions.gov.uk). For

2006/07, employers' contributions of £2,565,633 were payable to the PCSPS (2005/06 £2,157,583) at one of four

rates in the range 17.1% to 25.5% of pensionable pay, based on salary bands. The Scheme Actuary reviews

employer contributions every four years following a full scheme valuation. The contribution rates reflect benefits as

they accrue, not the costs as they are actually incurred, and reflect past experience of the scheme.

From 1 October 2002, civil servants may be in one of three statutory based "final salary" defined benefit schemes

(classic, premium, and classic plus). The Schemes are unfunded with the cost of benefits met by monies voted by

Parliament each year. Pensions payable under classic, premium, and classic plus are increased annually in line with

changes in the Retail Prices Index. New entrants after 1 October 2002 may choose between membership of premium

or joining a good quality "money purchase" stakeholder arrangement with a significant employer contribution

(partnership pension account).

Classic Scheme

Benefits accrue at the rate of 1/80th of pensionable salary for each year of service. In addition, a lump sum

equivalent to three years pension is payable on retirement. Members pay contributions of 1.5% of pensionable

earnings. On death, pensions are payable to the surviving spouse at a rate of half the member's pension. On death

in service, the scheme pays a lump sum benefit of twice pensionable pay and also provides a service enhancement

on computing the spouse’s pension. The enhancement depends on length of service and cannot exceed 10 years.

Medical retirement is possible in the event of serious ill health. In this case, pensions are brought into payment

immediately without actuarial reduction and with service enhanced as for widow(er) pensions.

Premium Scheme

Benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no

automatic lump sum, but members may commute some of their pension to provide a lump sum up to a maximum of

3/80ths of final pensionable earnings for each year of service or 2.25 times pension if greater (the commutation rate is

£12 of lump sum for each £1 of pension given up). For the purposes of pension disclosure the tables assume

maximum commutation. Members pay contributions of 3.5% of pensionable earnings. On death, pensions are

payable to the surviving spouse or eligible partner at a rate of 3/8ths the member's pension (before any

commutation). On death in service, the scheme pays a lump-sum benefit of three times pensionable earnings and

also provides a service enhancement on computing the spouse’s pension. The enhancement depends on length of

service and cannot exceed 10 years. Medical retirement is possible in the event of serious ill health. In this case,

pensions are brought into payment immediately without actuarial reduction. Where the member’s ill health is such

that it permanently prevents them undertaking any gainful employment, service is enhanced to what they would have

accrued at age 60.

46

Notes (continued)

8. Pension arrangements (continued)

Classic Plus Scheme

This is essentially a variation of premium, but with benefits in respect of service before 1 October 2002 calculated

broadly as per classic.

Pensions payable under classic, premium, and classic plus are increased in line with the Retail Prices Index.

Further details about the CSP arrangements can be found at the website www.civilservice-pensions.gov.uk.

Partnership Pension Scheme

Employees can opt to open a partnership pension account, a stakeholder pension with an employer contribution. The

employer makes a basic contribution of between 3% and 12.5% (depending on the age of the member) into a

stakeholder pension product chosen by the employee. The employee does not have to contribute but where they do

make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the

employer’s basic contribution). Employers also contribute a further 0.8% of pensionable salary to cover the cost of

centrally provided risk benefit cover (death in service and ill health retirement). In 2006/07 employers' contributions of

£28,720 (2005/06 £20,656) were paid to one or more of a panel of three appointed stakeholder pension providers.

English Partnerships Pension Scheme

Former employees of English Partnerships participate in the English Partnerships Pension Scheme. The English

Partnerships Scheme is a multi-employer defined benefit scheme but NWDA is unable to identify its share of the

underlying assets and liabilities. A full actuarial valuation was carried out at 31 March 2007 and more details can be

found in the separate scheme statement of the English Partnerships Pension Scheme. For 2006/07, normal employer

contributions of £148,352 were payable to the English Partnerships Pension Scheme (2005/06 £88,602) at the rate of

14.5% of pensionable pay (2005/06 14.5%). It has been agreed that contributions will be reviewed on an annual basis

although the Actuary conducts a full revaluation of the fund every three years. The contribution rates reflect benefits as

they are accrued, not when the costs are actually incurred, and they reflect past experience of the scheme. At the

Balance Sheet date there were no outstanding or prepaid contributions to the scheme.

9. Notional cost of capital

When calculating the net expenditure for the year, the Agency is required to include a notional cost of capital as

expenditure, to the extent that there is no real charge for this. This has been calculated as 3.5% (2005/06: 3.5%) of

the average of total assets less total liabilities. After net expenditure for the year there is an entry reversing this

amount.

47

10. Taxation

a) Analysis of the tax charge / (credit) in year:

2007 2006

£000 £000

Current taxation

Adjustments relating to previous year - 11

Deferred taxation

Deferred Tax provision - (2,748)

- (2,737)

b) Factors affecting the tax charge (credit) for the year

2007 2006

Restated

£000 £000

Net expenditure on ordinary activities before taxation (401,678) (378,386)

Net expenditure on ordinary activities multiplied by standard rate of

corporation tax in the UK of 30% (2006: 30%) (120,503) (113,516)

Effect of:

Notional cost of capital 1,620 2,053

Non taxable grant funding (131,336) (114,020)

Non relievable grant funded expenditure 116,977 107,632

Expenses not deductible for tax purposes 4,259 2,933

Depreciation for the year in excess of capital allowances (32) (112)

Other timing differences 5 3

Restriction on development assets written off 2,408 3,502

Accounting profit in excess of capital gain arising on disposal of investment assets 3,647 (388)

Creation / (utilisation) of tax losses 6,194 2,767

Adjustments to tax charge in respect of previous years - 11

Permanent differences (2,228) 87

Grant in Aid adjustment 118,989 109,059

- 11

A potential deferred tax asset totalling £21.7m has been calculated by the Agency’s tax advisers for 2006/07 largely as

a result of accumulated tax losses. It is not considered probable that taxable profits will arise in the future to utilise

these losses. For this reason, in accordance with FRS 19, an asset has not been recognised in the accounts.

48

Notes (continued)

11. Intangible operating assets

Software

Licences

£000

Cost

As at 1 April 2006 668

Additions in year 130

As at 31 March 2007 798

Amortisation

As at 1 April 2006 186

Amortisation in year 150

As at 31 March 2007 336

Net Book Value

As at 31 March 2007 462

As at 31 March 2006 482

12. Tangible operating assets

Land & Fixtures & Computer

buildings fittings equipment Total

£000 £000 £000 £000

Cost or Valuation

As at 1 April 2006 1,108 3,731 3,071 7,910

Additions in year 478 1,297 1,775

Transfers from Development Assets 1,045 1,045

Transfers to Development Assets (1,108) (1,108)

Disposals in year (99) (99)

As at 31 March 2007 1,045 4,209 4,269 9,523

Depreciation

As at 1 April 2006 155 2,786 2,350 5,291

Depreciation in year 20 605 560 1,185

Transfers to Development Assets (175) (175)

Disposals in year (97) (97)

As at 31 March 2007 - 3,391 2,813 6,204

Net Book Value

As at 31 March 2007 1,045 818 1,456 3,319

As at 31 March 2006 953 945 721 2,619

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

the assets.

49

13. Investment properties

2007 2006

£000 £000

Cost or valuation

As at 1 April 95,018 100,515

Additions 297 1,379

Disposals (6,848) (8,154)

Transfers to NorwePP Limited Partnership (see Note 26) (104,203) -

Transfers to Development Assets (5,181) -

Revaluations 20,917 1,278

As at 31 March - 95,018

14. Investments held as fixed asset investments

North West North West Rising Other Total

BIS Seed Fund Stars restated

£000 £000 £000 £000 £000

Cost

As at 1 April 2006 11,825 2,518 6,598 2,000 22,941

Additions in year 3,920 1,155 1,184 - 6,259

Disposals and repayments in year (34) - (474) (2,000) (2,508)

As at 31 March 2007 15,711 3,673 7,308 - 26,692

Provisions

As at 1 April 2006 (498) (873) (1,927) - (3,298)

Movement in provision 498 (529) 458 - 427

As at 31 March 2007 - (1,402) (1,469) - (2,871)

Net Book Value

As at 31 March 2007 15,711 2,271 5,839 - 23,821

Agency share of unrealised gains 49 - - - 49

Valuation as at 31 March 2007 15,760 2,271 5,839 - 23,870

Net Book Value

As at 31 March 2006 11,327 1,645 4,671 2,000 19,643

Valuation as at 31 March 2006 11,327 1,645 4,671 2,000 19,643

Agency Interest 75.00% 80.00% 37.90%

The Agency has loan investments in the North West Business Investment Scheme (BIS), the North West Seed Fund

and The Rising Stars Growth Fund. These limited liability partnerships provide funding, in the form of loans and equity,

to small businesses in the Northwest region. After recovery of the loan investment, the Agency is entitled to a return

on investments equivalent to its interest in the fund as shown above. The BIS has been primarily funded by the

European Union with the objective of making equity based investments in SMEs in the Northwest region.

50

Notes (continued)

15. Interests in subsidiaries, associates and joint ventures

Subsidiaries

Joint Ventures

Name Interest Nature Type

Estuary Management

Company Limited

100% Provision of Services at the

Estuary Commerce Park

Company Limited by Guarantee

Rural Regeneration

Cumbria Limited

81% Regeneration for Furness and

Cumbria

Company Limited by Guarantee

NorwePP (NWDA

Subsidiary) Limited

100% Shareholder in NorwePP (General

Partner) Limited

Private Limited Company

North West Business Link

Limited

100% Business support, advice and

information service

Company Limited by Guarantee

Name Interest Nature Type

Renewables NorthWest

Limited

50% Development of Initiatives for

Renewable Energy

Company Limited by Guarantee

51

Associates

Name Interest Nature Type

New East Manchester

Limited URC

33% Regeneration of East Manchester Company Limited by Guarantee

Liverpool Vision Limited

URC

33% Urban Regeneration of Liverpool Company Limited by Guarantee

Furness West Cumbria

New Vision URC Limited

20% Regeneration of West Cumbria Company Limited by Guarantee

Liverpool Land

Development Company

Limited

33% Regeneration of Strategic

Investment Areas in Liverpool

Company Limited by Guarantee

Brunswick Business Park

Limited

23.86% Management of Brunswick

Business park

Company Limited by Guarantee

Maryport Developments

Limited

20.4% ordinary

share capital

100%

preference

share capital

Management of the Development

of Maryport Harbour

Private Limited Company

Elevate East Lancashire

Limited

12.5% To develop an integrated and

coherent strategy for housing

market renewal

Company Limited by Guarantee

NorwePP Limited

Partnership

49.95% Investment in properties in the

Northwest

Limited Liability Partnership

Cumbria Vision Limited 12.5% Regeneration of Cumbria Private Limited Company

Daresbury Science and

Innovation Campus

Limited

16.6% Management of Daresbury

Innovation Campus

Company Limited by Guarantee

Hadrians Wall Heritage

Limited

20% Regeneration of the Hadrian’s

Wall World Heritage Site

Company Limited by Guarantee

52

Notes (continued)

15. Interests in subsidiaries, associates and joint ventures (continued)

Investments in Subsidiaries

Investment in Joint Ventures Net Assets

1. NWDA has no material subsidiaries requiring the preparation of Group Accounts.

2. The Estuary Management Company Limited is a non-profit making company. Any surplus/deficit is returned

to/recovered from, the tenants.

3. Rural Regeneration Cumbria Limited ceased trading during the year. All of the assets and liabilities of the company

were transferred at their current value to Cumbria Vision Limited.

4. NorwePP (NWDA Subsidiary) Limited did not trade during the year.

5. North West Business Link Limited commenced trading on 1 April 2007.

Estuary NorwePP Total Agency Share

Gross Income £291,610 NIL £291,610 £291,610

Gross Expenditure £291,610 NIL £291,610 £291,610

Profit/(Loss) after tax NIL NIL NIL NIL

Estuary NorwePP Total Agency Share

Fixed Assets NIL £500 £500 £500

Current Assets £110,121 NIL £110,121 £110,121

Gross Assets £110,121 £500 £110,621 £110,621

Liabilities due within one year £110,320 NIL £110,320 £110,320

Liabilities due after one year NIL NIL NIL NIL

Gross Liabilities £110,320 NIL £110,320 £110,320

Net Assets £(199) £500 £301 £301

Name Total Agency Share

Renewables Northwest Limited £14,399 £7,199

53

New associates in the year:

NorwePP Limited Partnership – see Note 26 for details.

Cumbria Vision Limited – acquired the net assets of Rural Regeneration Cumbria Limited which ceased trading during

the year.

Daresbury Science and Innovation Campus Limited – estate management company which manages Daresbury

Science Park.

Hadrians Wall Heritage Limited – objective is to realise the tourism potential of Hadrians Wall.

16. Long Term Loans

2007 2006

£000 £000

As at 1 April - -

Arising in year – NorwePP Limited Partnership (see Note 26) 132,760 -

Amounts repaid in year (12,800) -

Amount repayable within 12 months (10,000) -

As at 31 March 109,960 -

Investments in Associates Net Assets

Name Total Net Assets / (Liabilities) Agency Share

New East Manchester Limited URC (£93,890) (£31,297)

Liverpool Vision Limited URC £343,596 £114,532

Furness West Cumbria New Vision

URC Limited£185,220 £37,044

Liverpool Land Development

Company LimitedNIL

NIL

Brunswick Business Park Limited £54,899 £13,099

Maryport Developments Limited £(523,215) £(106,736)

Elevate East Lancashire Limited NIL NIL

NorwePP Limited Partnership £4,482,001 £2,236,518

Cumbria Vision Limited NIL NIL

Daresbury Science and Innovation

Campus LimitedNIL NIL

Hadrians Wall Heritage Limited £35,157 £7,031

Total £4,483,768 £2,270,191

54

Notes (continued)

17. Development Assets

2007 2006

£000 £000

As at 1 April 94,581 90,670

Additions in year 21,541 19,867

Transfers from Investment Properties 5,181 -

Transfers from Operating Assets 933 -

Transfers to Operating Assets (1,045) -

Transfers to NorwePP Limited Partnership (see Note 26) (28,557) -

Disposals (775) (7,746)

Amounts written down: European aid-Funded (2,625) (763)

Amounts written down: Grant In Aid-Funded (15,109) (10,894)

Revaluations 13,909 3,447

As at 31 March 88,034 94,581

18. Debtors

2007 2006

Restated

£000 £000

Trade debtors 11,400 10,022

Other debtors 8,726 6,738

Prepayments and accrued income 3,051 1,497

Value Added Tax 869 -

European Regional Development Fund 4,112 3,639

Loan Note repayment due within 12 months 10,000 -

Rural Loans 50 67

38,208 21,963

Intra-government balance analysis:

2007 2006

£000 £000

Balances with other central government bodies 10,122 6,262

Balances with local authorities 4,598 2,514

Balances with bodies external to government 23,488 13,187

38,208 21,963

55

19. Creditors: Amounts falling due within one year

2007 2006

£000 £000

Trade creditors 64,792 33,097

Accruals and deferred income 109,084 90,635

Other creditors 1,851 2,831

Value Added Tax - 638

Other Taxes and social security 455 460

176,182 127,661

Intra-government balance analysis:

2007 2006

£000 £000

Balances with other central government bodies 9,018 11,453

Balances with local authorities 70,484 55,600

Balances with NHS trusts 80 134

Balances with bodies external to government 96,600 60,474

176,182 127,661

20. Creditors: Amounts falling due after more than one year

2007 2006

£000 £000

Deferred Income – Other 559 616

Deferred Income - European Capital Grants 20,342 16,993

20,901 17,609

21. Provisions for liabilities and charges

CPOs Dilapidations Total

£000 £000 £000

As at 1 April 2006 - 978 978

Charge / (credit) to the Income & Expenditure account - (581) (581)

Arising during the year 12,718 - 12,718

Released during the year - (366) (366)

As at 31 March 2007 12,718 31 12,749

CPOs:

Represents liability for compensation payments for land and buildings which have transferred to the Agency under

Compulsory Purchase Orders. These should be settled within the next three years. The provision above has been

provided by an independent chartered surveyor, but the final liability may be settled by arbitration.

Dilapidations:

Provision is made for the cost of repairs to buildings where, under the terms of the lease, the repairs are the

responsibility of the tenant. The provision represents the amounts invoiced to tenants less expenditure incurred by the

Agency for repairs.

56

Notes (continued)

22. General Reserve

2007 2006

Restated

£000 £000

EU funded assets:

As at 1 April 11,933 5,002

Additions 7,638 11,873

Amounts written off (2,624) (5,867)

Amounts written back - 925

Revaluation 49 -

Transfer from Grant In Aid Reserve 497 -

As at 31 March 17,493 11,933

English Partnerships funded assets:

As at 1 April 3,027 777

Additions 268 3,035

Transfer from Grant In Aid Reserve (515) (785)

As at 31 March 2,780 3,027

Pensions:

As at 1 April (94) (74)

Actuarial loss (26) (1)

Transfer from Grant In Aid Reserve (20) (19)

As at 31 March (140) (94)

Total general reserve 20,133 14,866

23. Revaluation Reserve

2007 2006

Restated

£000 £000

As at 1 April 33,764 29,039

Revaluations during the year 29,497 4,725

As at 31 March 63,261 33,764

57

24. Grant in Aid Reserve

2007 2006

Restated

£000 £000

As at 1 April 58,704 121,711

Grant in Aid received in year and applied to expenditure 369,000 305,000

Net expenditure from Income and Expenditure Account (396,276) (368,811)

Transfer to General Reserve – English Partnerships funded assets 515 785

Transfer to General Reserve – Pensions 20 19

Transfer to General Reserve – EU funded assets (497) -

As at 31 March 31,466 58,704

25. Third Party Assets

The Agency holds a third party asset of £74,383 relating to the Train to Gain programme. The funds are held on behalf

of the Learning and Skills Council for subsequent distribution to North West Business Link.

26. Public Private Partnership

During the course of the financial year, the Agency entered into a 10 year partnership with Ashtenne Industrial Fund

Limited Partnership in relation to its property portfolio. All investment property assets and some of the development

property assets have been transferred to a 50:50 joint venture arrangement with Ashtenne Industrial Fund Limited for

a consideration of £132,759,667.

Consideration details

The value of properties transferred was as follows:

Investment properties £104,203,046

Development assets £28,556,621

In return for transferring the properties the Agency received two loan notes to the value of the transfer which will be

paid over the duration of the partnership:

Loan note A £32,689,917

Loan note B £100,069,750

Loan Note B carries interest at 5% per annum and is repayable by instalments up to 31 March 2016.

Loan Note A carries interest of 5% on the excess of the loan over the amount of the Loan Note of Ashtenne Industrial

Fund (Ashtenne will have matched the value of the loan by 31st March 2009). Loan note A is only repayable at the

end of the partnership.

58

Notes (continued)

During the year the Agency received £2,026,817 interest from the Loan Notes.

The management of the properties is carried out by Ashtenne Asset Management Limited and the Agency will receive

a share in rental income and any uplift in value of properties.

NWDA will have first ranking security over the assets of the Partnership to the value of any outstanding amount that

has not been redeemed from Loan Note B. This security will take priority above that of any third party finance taken

out by the partnership.

Structure of the Joint venture arrangement

NorwePP Limited Partnership is effectively the joint venture vehicle. NWDA owns 49.95%, Ashtenne Industrial Fund

Limited owns 49.95%, and 0.1% is owned by NorwePP (General Partner) Limited.

NorwePP (General Partner) Limited is owned equally by NorwePP (NWDA Subsidiary) Limited and Ashtenne Industrial

Fund Limited Partnership.

In turn NorwePP (NWDA Subsidiary) Limited is 100% owned by NWDA and Ashtenne Industrial Fund Limited

Partnership is 100% owned by Ashtenne Industrial Fund General Partner Limited.

27. Contingent liabilities

The regeneration of Ancoats as an urban village is a major project for the Agency which is anticipated to make a vital

contribution to the regeneration of East Manchester and the growth of the region.

The project includes a programme of purchases under a Compulsory Purchase Order (CPO). Over the last three years

the Agency has acquired nearly 200 plots of land and repackaged these into a smaller number of plots more suitable

for redevelopment. The CPO process enables these acquisitions to take place without the price of each purchase

needing to have been agreed with or paid to the former landowners.

Under CPO legislation, the former owners submit claims to us for the compensation they believe is due. A period

of negotiation then follows. If we cannot agree a valuation through negotiation, the final settlement is ultimately

resolved through a reference to and ruling of The Lands Tribunal. Over half the amount of compensation due has

already been paid.

We have made a provision in our accounts for £8 million for the compensation outstanding for payment on the

Ancoats project. This is based on both the judgement exercised by the management of the Agency and an

independent valuation and assessment by GVA Grimley, our appointed Consultant Surveyors. This provision covers

the most likely cost of the compensation not yet agreed or paid. We believe that the valuation provided is sufficient in

terms of market conditions at the date of vesting and capable of being successfully defended at a Tribunal if this

proves necessary.

However there is a contingent liability of £2.2 million based upon the difference between the amounts of

compensation which we have offered and provide for and the former land owners’ views of the compensation

amounts they are entitled to.

59

28. Commitments

(a) Operating leases

As at 31 March 2007 the Agency had annual commitments under operating leases as follows:

2007 2006

Buildings Others Buildings Others

£000 £000 £000 £000

Leases expiring

- within one year - 48 - 37

- between one and five years 126 199 110 157

- over five years 931 - 996 -

1,057 247 1,106 194

Rental costs of operating leases are charged to the Income & Expenditure Account on a straight line basis over the

term of the lease.

(b) Capital commitments

Capital commitments at the end of the financial year, for which no provision has been made, are as follows:

2007 2006

£000 £000

Authorised by the Board and contracted 3,776 38,795

29. Financial instruments

The Agency has no borrowings and relies primarily on departmental grants for its cash requirements and is therefore

not exposed to liquidity risks. It has no material deposits and all material assets and liabilities are denominated in

sterling, so it is not exposed to interest rate risk or currency risk. Transactions entered into which result in debtors due

after more than one year have a low credit risk.

30. Post balance sheet events

1. North West Business Link Limited, a wholly owned subsidiary of the Agency, commenced trading on 1 April 2007.

2. The Northwest Regional Development Agency’s financial statements are laid before the Houses of Parliament by

the Secretary of State for the Department of Trade and Industry. FRS21 requires the Northwest Regional

Development Agency to disclose the date on which the accounts are authorised for issue. This is the date on which

the certified accounts are dispatched by the Agency to the Secretary of State for the Department of Trade and

Industry. The authorised date for issue is July 2007.

3. It is anticipated that the Northwest Regional Development Agency will take responsibility for the implementation of

the European Regional Development Fund Programme from Government Office for the North West during the

financial year 2007/08.

60

Notes (continued)

31. Related party transactions

The Northwest Regional Development Agency is a Non-Departmental Public Body sponsored by The Department of

Trade and Industry (‘DTI’). DTI is regarded as a related party with which, during the year, Northwest Regional

Development Agency has had a significant number of material transactions.

In addition, the Agency has had various material transactions with other Government Departments and other central

bodies. Most of these transactions have been with the Department for Communities and Local Government and

English Partnerships (EP).

Other Regional Development Agencies are also sponsored by the DTI and so are regarded as related parties. The

Agency has had transactions with East of England Development Agency, East Midlands Development Agency,

Advantage West Midlands, One North East, South East England Development Agency, South West of England

Development Agency and Yorkshire Forward in the year.

Board Members took no part in the discussions which concerned organisations that Board Members have

connections with as reported in the Register of Members’ Interests.

During the year none of the Board Members, key management staff or other related parties has undertaken any

material transactions with the Northwest Regional Development Agency apart from those detailed below.

(a) Subsidiary and associated undertakings

Sales/ Debtor/

(Purchases) (Creditor)

£ £

Connected Party

Investments

Northwest Business Investment Scheme (4,170,315) -

Northwest Seed Fund (1,154,750) -

Rising Stars (1,184,211) -

Subsidiary undertakings

The Estuary Management Company Limited 18,228 -

Rural Regeneration Cumbria (553,026) -

NorwePP (NWDA Subsidiary) Limited - -

North West Business Link Limited - -

Associated undertakings

New East Manchester Limited (4,299,102) (7,133,404)

Liverpool Land Development Company Limited (7,218,918) (5,348,776)

Liverpool Vision Limited (521,115) (4,315,624)

Brunswick Business Park Limited - -

Furness West Cumbria New Vision Limited – trading as West Lakes Renaissance - -

Maryport Developments Limited (12,316) -

Elevate East Lancashire Limited - -

NorwePP Limited Partnership 262,500 -

Cumbria Vision 61,323 1,663

Daresbury Science and Innovation Campus Limited (47,254) -

Hadrian’s Wall Heritage Limited (145,509) (238,774)

Joint ventures

Renewables Northwest Limited - -

61

31. Related party transactions (continued)

(b) Board members

Income Payments

to the made to

Agency Organisations Nature of

Name and position Related Party Position £ £ transaction

Bryan Gray MBE, DL Lancaster University Pro Chancellor 77,925 4,854,765 Grant claims

Chairman National Museum Liverpool Trustee - 1,619,741 Grant claims

University of Central Lancashire Honorary Fellowship 55,601 1,451,440 Grant claims

Learning & Skills Council (National) Board Member 2,756,232 224,739 Grant claims

Culture Northwest Board Member 97,103 269,519 Grant claims

Lake District National Park Authority Member - 5,000 Grant claims

Professor Sir Martin University of Salford Chancellor 31,306 1,174,946 Grant claims

Harris CBE, DL

Board Member

Anil Ruia OBE, JP, LLB Asian Business Federation Member - 76,185 Grant claims

Board Member The University of Manchester Trustee 2,494 13,023,460 Grant claims

National Museum Liverpool Trustee - 1,619,741 Grant claims

UMIP Member 1,015 - Goods & services

Sport England North West Member 2,350 - Goods & services

Granada Television Limited Director 352 - Goods & services

Cllr Mike Storey CBE Liverpool City Council Councillor 40,447 17,521,728 Grant claims

Board Member

Brenda Smith Liverpool Vision Director2 - 521,115 Goods & services

Board Member Granada Television Limited Non-executive 352 - Goods & services

Deputy Chair

University of Salford Member - 1,174,946 Grant claims

The University of Manchester Governor 2,612 13,023,460 Grant claims

Business in the Community Member - 59,750 Grant claims

Manchester Airport Aviation Non-executive

Services Director - 52,980 Grant claims

Dr Pauleen Lane CBE Trafford Metropolitan Borough Elected Member - 188,771 Grant claims

Board Member Council

The University of Manchester Lecturer 2,612 13,023,460 Grant claims

English Partnerships Deputy Chair 4,004,900 20,825 Goods & services

Marie Rimmer CBE St Helens Metropolitan Borough Councillor 76,034 1,493,058 Grant claims

Board Member Council

St Helens Chamber of Commerce Member (part year) - 44,809 Grant claims

The Mersey Partnership Board Member 4,373 2,656,966 Grant claims

(part year)

The World of Glass (St Helens) Ltd Director (part year) - 4,932 Goods & services

31. Related party transactions (continued)

(b) Board members (continued)

Income Payments

to the made to

Agency Organisations Nature of

Name and position Related Party Position £ £ transaction

Professor Maureen Liverpool John Moores University Visiting Professor

Williams of Sociology 42,300 2,552,162 Grant claims

Board Member The Mersey Partnership Board Member2 4,373 2,656,966 Grant claims

Dave McCall none

Board Member

Joe Dwek CBE University of Manchester Member 2,612 13,023,460 Grant claims

Board Member Envirolink (North West) Ltd Chairman - 2,254,329 Grant claims

ENWORKS Board Member - 1,650,753 Grant claims

(part year)

Mercury Recycling Ltd. Director - 45,000 Grant claims

Professor John Lancashire Business Link Director - 6,517,108 Grant claims

Moverley OBE

Board Member

David Brockbank Cumbria Vision Chairman 61,323 - Goods & services

Board Member Lancaster University Member (part year) 77,925 4,854,765 Grant claims

Peter Hensman DL Lancaster University Member 77,925 4,854,765 Grant claims

Board Member Cumbria Rural Enterprise Agency Vice Chairman - 1,133,906 Grant claims

Tiss Ltd. Director - 13,027 Grant claims

John Merry Salford City Council Leader 5,955,592 7,608,123 Grant claims

Board Member Learning & Skills Council (National) Board Member 2,756,232 224,739 Grant claims

MIDAS Director 507 1,447,808 Grant claims

Marketing Manchester Director 8,445 1,308,318 Grant claims

Vanda Murray OBE TPMI Trading Ltd. Non-executive director 20,562 3,182,010 Grant claims

Board Member Carillion plc Non-executive director 8,813 - Goods & services

The Manufacturing Institute Trustee and

non-executive director - 2,333 Goods & services

Notes 1Indirect interest

2 NWDA Representation

62

Notes (continued)

31. Related party transactions (continued)

(c) Executive Management Board & Board Members

Income Payments

to the made to

Agency Organisations Nature of

Name and position Related Party Position £ £ transaction

Steven Broomhead Warrington Chamber of Commerce Director - 23,515 Goods & services

Liverpool Land Development Co 2 Board Member 56,217 7,269,136 Grant claims,

Goods & services

Liverpool Vision 2 Board Member - 521,115 Grant claims,

Goods & services

Liverpool John Moores University Governor 42,300 2,552,162 Grant claims

The Princes Trust 2 Board Member - 270,610 Grant claims,

Goods & services

University of Central Lancashire Board Member 55,601 1,451,440 Grant claims,

Goods & services

Cumbria Vision Director 61,323 - Goods & services

LSC Regional Board (North West) 2 Member 1,311 -

Manchester Enterprises 2 Board Member 33,373 2,955,232 Grant claims,

Goods & services

Peter Mearns Arts Council England (Northwest) Non-Exec Council - 32,100 Promotional

Member Events Invoices

England’s North Country Non-Exec Board 17,625 -

Member 2

Business in the Community

Northwest Community Enterprise - 59,750 Goods & services

Mentor

Culture Northwest Non-Exec Member 2 97,103 269,519 Grant claims

Ian Haythornthwaite National Football Museum Director of Finance - 20,000 Goods & services

Cumbria Vision 2 Board Member 61,323 - Goods & services

Bernice Law Warrington Collegiate Institute Governor - 2,505,918 Grant claims,

Goods & services

Liverpool Vision Board 2 Alternate Member - 521,115 Grant claims,

Goods & services

Liverpool LDC 2 Alternate Member 56,217 7,269,136 Grant claims,

Goods & services

Note 2 NWDA Representation

63