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					                  Statement Of Accounts 2007-08



                              CONTENTS

                                                              Page

FOREWORD BY THE CHIEF FINANCIAL OFFICER                               2

STATEMENT OF ACCOUNTING POLICIES                                     12

STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS          20

INCOME AND EXPENDITURE ACCOUNT 2007/08                               21

STATEMENT OF MOVEMENT ON THE GENERAL FUND BALANCE 2007/08            22

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 2007/08               22

BALANCE SHEET 2007/08                                                23

CASH FLOW STATEMENT                                                  24

COLLECTION FUND                                                      25

NOTES TO THE ACCOUNTS                                                26

GLOSSARY OF FINANCIAL TERMS                                          50

ANNUAL GOVERNANCE STATEMENT 2007/8                                   51

AUDIT OPINION                                                        79

SCHEME FOR MEMBERS ALLOWANCES                                        82




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                     Statement Of Accounts 2007-08


         FOREWORD BY THE CHIEF FINANCIAL OFFICER

Introduction

The purpose of this foreword is to provide the reader with an easily
understandable guide to the most significant matters reported in the Accounts.
This foreword also acts as the Council’s Annual Report, which highlights the major
influences on the Council’s expenditure and income and comments on the
Council’s overall financial position and performance against the Corporate
Business Plan.

A Review Of The Financial Year

The business of managing the Council’s finances presents a number of significant
challenges with approximately £55m passing through our books in a year.

The Challenges

The Council continued to modernise its refuse collection and cleansing services,
applying significant investment to change working practices and to improve
recycling rates. These changes have already started to pay off and the Council
continues to be well on target to meet and potentially exceed Government set
recycling targets (50% by 2010) with North Devon recycling 39% of domestic
waste during the year (35% in 2006-07).

The national crisis for pensions funding continues to be a major concern for Local
Government. During the autumn of 2007 our actuary undertook the triennial
review of the Pension scheme and costs. This review incorporated the changes
made to the benefits package within the scheme as at 01 April 2008. This
provided valuable information to enable us to forecast the future annual costs and
overall liability of the scheme. Between 2006-07 and 2007-08 the overall liability
of the scheme reduced from £18.8m to £15.4m, however, during the Medium
Term (2008-09 to 2010-11) employer contributions to the scheme are forecast to
increase from 17.0% in 2007-08 to 18.5% by 2010-11.

In addition, national changes to terms and conditions (the single status
agreement) are still progressing. During 2007/08 we commissioned a consultant
to undertake an equal pay audit, which will determine the extent, if any, of
potential employee claims under the Equal Pay legislation. Work is progressing
on the issues raised in the report, however, due to North Devon Council’s robust
job evaluation scheme it is not anticipated that the financial impact will be
significant.

Meeting the Challenges

The Council already operates a robust financial planning regime through its
approved three year rolling financial plan (the Medium Term Financial Strategy).
This plan seeks to achieve Council Tax increases in line with Central Government
guidelines below 5% year on year, at the same time, achieving budget
improvement to help meet new challenges and priorities set out in the Council’s
Corporate Business Plan.

The Work’s Unit financial performance has continued to improve during 2007/08.
This has resulted in significant improvements in the cost associated with the
collection of household waste (Best Value Performance Indicator 86 – BVPI86),


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                      Statement Of Accounts 2007-08

which was £62.43 per household in 2007-08 compared with £66.98 in 2006/07 a
reduction of 6.8%.

The challenge of the first phase of the Gershon efficiency regime (Comprehensive
Spending Review 2004 – CSR04) reached its conclusion during 2007-08. The
Council has forecast to exceed its target of £1.2m by approximately £0.4m.
Approximately £1.2m of the efficiency savings realised since the start of the
process in 2005-06 is cash related, which has enabled the Council to further
invest in improvements to Council Services.

Capital Programme investment during 2007-08 achieved a substantial
improvement in terms of actual delivery against the levels of budget planned
compared to the previous year. In 2007-08 £8.003m million was spent against a
planned programme of £9.806m, which is almost 82% compared to only 50%
spend in 2006-07 (£3.262m). Further analysis of Capital Investment is detailed
below.

Even allowing for this, the challenges during 2007/08 needed further remedial
action including close management of vacancies, reviewing reserve contributions
and a general search for savings opportunities to meet the Council’s ongoing
programme of investment and improvement in services.

I am pleased to report that the combination of in year measures and the robust
Medium Term Financial Strategy saw us through the financial pressures and
allowed us to reach the year end with an additional unbudgeted contribution to
reserves of £0.8m.

At the same time, the Council continued to meet its commitment to keep the
Council Tax increase below 5%.

The challenges of 2007/08 have now been dealt with and have been absorbed
within our future financial plans, where necessary.

The Financial Statements

The accounts contain a number of separate but inter-related statements. These
are described briefly below.

Statement Of Accounting Policies

This statement describes the accounting concepts and policies adopted in the
preparation of the accounts. It contains a number of technical notes, none of
which are unusual or which differ from the concepts adopted by the majority of
other Local Authorities. The Council complied with all recommended accounting
practices contained within the Code of Practice on Local Authority Accounting in
the United Kingdom 2007, which is recognised by statute as representing proper
accounting practices. The Code of Practice incorporates Best Value Accounting
principles with which the Authority has also complied. These principles provide
the basis by which authorities present their net cost of services in the statement
of accounts i.e. the classifications of service to be detailed in the service
expenditure analysis in the top half of the Income and Expenditure Account.

There were some significant changes in the Code of Practice, which apply to the
2007/08 Statement of Accounts and the changes are in reflected in the relevant
sections.



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                       Statement Of Accounts 2007-08

The main changes were:

Introduction of Revaluation Reserve

The introduction of the Revaluation Reserve, which records the accumulated gains
on the fixed assets held by the authority arising from increases in value, as a
result of inflation or other factors. The Revaluation Reserve records gains
recognised since 1 April 2007 only. The Reserve is also debited with amounts
equal to depreciation charges on assets that has been incurred only because the
asset has been revalued. On disposal the asset disposed of is written out to the
Capital Adjustment Account. The overall balance on the Reserve thus represents
the amount by which the current value of fixed assets carried in the Balance
Sheet is greater because they are carried at revalued amounts rather than
depreciated historic cost.

Financial Instruments Disclosure

Financial instruments represent any contract that gives rise to a financial asset in
one entity and a financial liability or equity instrument of another entity. They
consist of financial assets and financial liabilities. Financial assets that the council
holds include transactions such as loans and receivables, which are assets that
have fixed or determinable payments but are not quoted in an active market.
Financial liabilities can includes items such as derivatives.

A further inclusion made by the council for 2007-08 is the accounting policy for
group accounting. Although the Council does not have arrangements that give
rise to the full adoption of Group Accounts the North Devon Crematorium
operates as a joint arrangement between North Devon and Torridge District
Councils. In 2007-08 for the first time the Income and Expenditure Account and
Balance Sheet will include this authority’s share of the income, expenditure,
assets and liabilities of the Crematorium. Comparative figures for 2006-07 have
also been restated to reflect the final 2006-07 Crematorium Accounts.

Pension Liabilities

The Net Cost of Services within the Income and Expenditure Account includes
current service costs and past service costs. Net Operating Expenditure includes
the Council’s share of the return on pensions assets and the interest cost of the
Council’s liability due to under-funding.

The Council’s liability relating to the Devon County Council defined benefit
pension scheme is included within the Balance Sheet. The liability is £15.54m at
31st March 2008 (£18.780m at 31st March 2007). The amount the Council
contributes to the Pension Fund is re-assessed every three years, the most recent
review was in the autumn of 2007 and took effect from April 2008. This review
incorporated a number of significant changes to the Local Government pension
Scheme, which came into effect on 1 April 2008. The next review is due in
autumn 2010. The Council has adjusted its contributions in line with the
Actuaries recommendations.

Note 16 Pension Costs, provides more information on this area.




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                      Statement Of Accounts 2007-08


Revenue Account

Expenditure and income on everyday running costs, such as officers’ salaries,
premises, transport, supplies and services is contained in the Council’s revenue
account, the Income and Expenditure Account.

Income and Expenditure Account

The Income and Expenditure Account shows the income and expenditure for all
the Council’s services and the net surplus/deficit for the year, before taking
account of transactions provided under statute, which are now shown in a
separate statement called the Statement of Movement on the General Fund
Balance. This statement follows in the Income and Expenditure account in the
Statement of Accounts.

The Council originally budgeted to spend £13.054m in 2007/08.

1.     Actual 31 March 2008

The actual outturn produced an underspend of £0.8m a variance against the
December 2007 forecast of £0.6m. The table below highlights the major
movements that have resulted in this position being achieved since the forecast
produced as at 31 December 2007.

                                                                                   (over)
                                                                                   Under
                                                                                   Spend
                                                                          £’000    £’000
Forecast – 31 December 2007                                                           555
Actual – 31 March 2008                                                                755
Variance                                                                             200
Analysis of Major Variances:

Payment of Outstanding Compensation Claim                                  (110)
Salary Related Costs across all Services:
This is made up of a number of under and over spends across all the
Council’s Service areas.                                                    (24)
Supplies, Services and Office related costs across all Services:
This is made up of a number of under and over spends across all the
Council’s Service areas.                                                     132
Legal and Democratic Services:
The cost of parish elections not recharged.                                 (20)
Community and Leisure Services:
The cost of Concessionary Fares remains an area of uncertainty and
there is still an appeal outstanding from the Bus Company regarding
the amount due to them and a provision of £47k is set aside for this.       (47)
Environmental Health and Housing Services:
There was an underspend in relation to the payments made to Care
and Repair, who provide support for disabled facilities grant
applicants. We are required to use this to fund capital expenditure           45
on minor disabled facilities grants in 2008-09. There was also other
additional income achieved within the service.

The Homelessness team have realised an underspend, which was



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                      Statement Of Accounts 2007-08

achieved through improved prevention measures and recovery of
income.                                                                    12

Financial Services:
Income received through the investment of the Council’s resources
and cash flows was slightly higher than previously anticipated.            19

The receipt of Government Subsidy to fund Housing and Council Tax
benefits payments was slightly below forecast.                            (26)
Planning and Development Services:
The December forecast for income was based on the levels of demand
and the income actually received during the months leading up to that
point. Income had peaked earlier in the year and as such the forecast
was in excess of that actually achieved.                                  (69)

The Planning Services Improvement Plan progressed during 2007-08,
which required changes to office accommodation and relocation. The
cost of the moves was funded from Planning Delivery Grant.                (23)
Property and Technical Services:
Property related income and expenditure: These relate to the
rental/lease of assets, which the Council either owns or rents / leases
from another party e.g. Civic Centre. The proper accounting               (15)
treatment of income received from assets that are leased to external
organisations under Finance Leases is required to be split between
Finance Costs (interest) and principal repayment, which was not
forecast during the year.

The Grounds Maintenance contract was re-tendered during 2007-08,           44
which is expected to produce savings from 2008-09 onwards.
However, in addition to this income from public open space
agreements attributable to specific grounds maintenance programmes
has contributed to a saving against budget achieved in this service.

Recycling and Commercial Services:
The recycling and kerbside collection service achieved a substantial
underspend against the budget. There were two major contributing
factors that predominantly resulted in this position: additional
recycling income relating to 2006-07, which did not materialise until
2007-08 (£47k) and a greater than expected surplus from the
stockpile account (£41).                                                  135

Vehicle Maintenance and Fuel Costs were much lower than
anticipated. Reduced maintenance was simply due to vehicles not
requiring the level of repairs that had previously been the case and
fuel costs were not as high as high as had been anticipated.               90

The Trade Waste Service recorded an underspend, which was due
primarily to the reduction in tipping charges.                             18
Sub –Total                                                                       161
Other Variances                                                                   39
Total Variance                                                                   200




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                       Statement Of Accounts 2007-08

2.     Proposals for the Surplus

           (i)     During 2002-03 the Council replaced a significant element of
                   the vehicles used for household waste collection. The vehicles
                   were expected to last 5 years before reaching the stage where
                   it becomes more economical to replace compared to providing
                   ongoing repair and maintenance. We reviewed the replacement
                   needs early in 2007-08 as part of the Medium Term Financial
                   Strategy and determined that should sufficient resources be
                   available when the accounts were closed for 2007-08 that an
                   additional £0.2m would be set aside in the replacement reserve.
                   Therefore as a sufficient surplus has been realised £0.2m will be
                   set aside in the vehicle replacement reserve in addition to the
                   normal budgeted contribution of £0.3m. Some of the vehicles
                   have lasted longer than expected and we have therefore been
                   able to phase the replacement programme in order that in
                   future we can continue on a phased replacement cycle.

           (ii)    The Capital Programme is currently funded predominantly via
                   capital receipts, which are forecast receipts due within the
                   current planning period 2008-09 to 2010-11. There is a risk
                   that either some of the receipts may not be realised, or, that
                   the receipt is lower than anticipated. Therefore, in order to
                   mitigate this we have set aside £0.3m in the Capital Funding
                   Reserve.

           (iii)   The Improvement Programme Reserve was established to set
                   aside resources, which the Council could draw against as and as
                   when Service Improvement Developments are being
                   implemented. The Council has set aside £0.2m in this reserve
                   to predominantly deal with the uncertain costs of Local
                   Government Review in Devon and improvements in the Housing
                   Advice and Rough Sleepers Services.

           (iv)    Other minor contributions to Housing, Planning Inquiries,
                   Councillor Grants and Lynton Agency reserves account for a
                   further £0.2m.

The Council’s overall unbudgeted contributions to reserves amount to almost
£1.0m, which is possible due to a £0.2m reduction in the Council’s General Fund
Reserve.

The General Fund Reserve retains a healthy balance of £1.4m and this together
with balances on other earmarked reserves of £4.4m provides an overall total in
reserves of £5.8m. These balances enable North Devon Council to remain in a
strong financial position to deal with the risks its faces and to continue to deliver
upon its priorities set out in the Corporate Business Plan.

In addition to these balances the Council also holds balances in relation to the
North Devon Crematorium, which is provided under a joint arrangement with
Torridge District Council. The Council’s Balance Sheet contains a General Balance
of £0.1m and Earmarked Reserve Balance of £0.2m, which represents North
Devon’s estimated 60% of the share of the Crematorium total holding.

The Council’s net expenditure on the Income and Expenditure Account was
financed from the following sources:


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                      Statement Of Accounts 2007-08


                                            £000          %
 Council Tax                               6,318        43.4
 Government Grants                         1,650        11.3
 Non Domestic Rates                        6,595        45.2
 Collection Fund Transfer                      8         0.1
                                          14,571         100

Statement of Movement on the General Fund Balance

This statement consists of items excluded from the Income and Expenditure
Account because they are not consistent with UK Generally Accepted Accounting
Practices (UK GAAP). However, these are items of Income and Expenditure,
which must be taken into account when setting the Local Authority Budget and
Council Tax to establish the movement on the Local Authorities General Fund
Balance and include items such as contributions to or from earmarked reserves.

Statement of Total Recognised Gains and Losses

The information disclosed within this statement identifies gains and losses the
Council has experienced in the year which are not reflected in the Income and
Expenditure account because they are not related to operational activities, it
includes items such as gains or losses on the revaluation of fixed assets.

The Balance Sheet

The Balance Sheet shows the assets and liabilities of the Council as a whole at
31st March 2008.

There are a number of detailed notes. These include details of capital
expenditure of the Council on fixed assets such as land and buildings as
distinguished from revenue expenditure or running costs.

During the year, the Council invested £8.003m on capital, analysed as follows:

                                            2007/08
                                             £’000
Economy and Regeneration                       1,845
Providing Good and Efficient Services          2,932
Tackling the Housing Problem                   1,425
Statutory and Landlord Functions                 834
Other                                            967
Total                                          8,003




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                      Statement Of Accounts 2007-08




                       ACTUAL CAPITAL EXPENDITURE 2007-08
                        Tackling the                 Economy and
                      Housing Problem                Regeneration
                            18%                         23%

                                                         Statutory and
                                                           Landlord
                     Providing Good
                                                     Other Functions
                      and Efficient                          10%
                                                     12%
                        Services
                          37%
       Economy and Regeneration                  Statutory and Landlord Functions
       Other                                     Providing Good and Efficient Services
       Tackling the Housing Problem

This compares to £3.262m spent in 2006-07.

The Council invested substantially more during 2007-08 than in 2006-07 and this
is reflected in a number of major projects coming being delivered during the year
including:-

       (i)     The Council acquired a site, which is proposed to accommodate the
               relocation of the works unit,

       (ii)    the Woodlands Enterprise Centre was officially opened on 2 April
               2008,

       (iii)   investment in private sector housing through grants and loans
               schemes,

       (iv)    replacements to works unit vehicle used for waste collection and
               recycling services,

       (v)     significant progress has been made on Customer Access through
               the one stop shops at Ilfracombe (opened 23 April 2008) and South
               Molton (due to open in 2008-09) and

       (vi)    major construction repair works have been undertaken at Old Quay
               Head, Ilfracombe Harbour

Details of how the above investment was financed are set out in Note 15 – Fixed
Assets




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                      Statement Of Accounts 2007-08


The Council plans to invest the following sums in the years indicated:

                                            2008/09    2009/10    2010/11
                                             £000       £000       £000
 Good, Efficient Services                      3,811     3,194        719
 Economy & Regeneration                          220       198          0
 Tackling the Housing Problem                  2,303     1,535          0
 Statutory & Landlord Functions                  239         0          0
 Other                                         1,605     2,061      7,300
                                               8,178     6,988      8,019

This investment will be financed by:

                                            2008/09    2009/10    2010/11
                                                £000    £000       £000
 Grants & Contributions                        1,406       466          0
 Reserves                                      1,330       271          0
 Prudential Borrowing                          5,000         0          0
 Capital Receipts                                442     6,251      8,019
                                               8,178     6,988      8,019

The Balance Sheet contains the Authority’s Revenue Reserves, which are
summarised below:

 31/03/2007                                     31/03/08
         £000                                        £000
        1,646     General Revenue Account           1,504
        4,168     Earmarked Reserves                4,435
        5,814                                       5,939

The Council has an overdraft facility of up to £500,000 with its bank subject to
extension by agreement. Temporary borrowing from the money markets may
occur during the year to meet temporary cash flow requirements. The Council
does, however, remain free from long term debt and retained its debt free status
during 2007-08.

Cash Flow Statement

This statement summarises the inflows and outflows of cash arising from external
transactions for both capital and revenue purposes.

Notes to the Accounts

These provide the additional information and further explanation to the content of
the Statements.

Collection Fund

These statements show income from local taxes and from the national non-
domestic rates pool, and how these are allocated to the District Council, County
Council and the Police and Fire Authorities on whose behalf they are collected.




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                     Statement Of Accounts 2007-08


Authorisation of the Statement of Accounts

The Statement of Accounts 2007/08 were authorised for issue by the Chairman
on 25th June 2008. This is also the date up to which events after the balance
sheet date have been considered.




            M. Mansell                                   Date
      Chief Financial Officer




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                      Statement Of Accounts 2007-08



               STATEMENT OF ACCOUNTING POLICIES

General Principles

The Accounts have been prepared in accordance with the Code of Practice on
Local Authority Accounting in the United Kingdom 2007; a Statement of
Recommended Practice, (the SORP) published by the Chartered Institute of Public
Finance and Accountancy (CIPFA). The SORP defines proper Accounting practices
to be followed by Councils when preparing their Accounts. There has been no
change in Accounting Policies during the year.

Accruals Of Income And Expenditure

Activity is accounted for in the year that it takes place, not simply when cash
payments are made or received. In particular:

      Fees, charges and rents due from customers are accounted for as income
       at the date the Council provides the relevant goods and services.

      Supplies are recorded as expenditure when they are consumed – where
       there is a gap between the date supplies are received and their
       consumption, they are carried as stock on the balance sheet.

      Interest receivable on investments (and payable on short term
       borrowings) is accounted for in the year to which it relates, on a basis that
       reflects the overall effect of the investment (or the loan).

      Where income and expenditure has been recognised but cash has not
       been received or paid, a debtor or creditor is recorded in the balance
       sheet. Where it is doubtful that debts will be settled, the balance of
       debtors is written down and a charge made to revenue for the income that
       might not be collected.

Contingent Assets And Liabilities

A contingent liability is a possible obligation that arises from past events and
whose existence will be confirmed only by the occurrence of one or more
uncertain future events not wholly within the Council’s control. In accordance with
FRS12, where a material contingent loss is not accrued, perhaps because it
cannot be estimated or because the event is not considered sufficiently certain, it
is disclosed as a note to the balance sheet. Contingent assets, where applicable,
are disclosed by way of notes if the inflow of a receipt or economic benefit is
probable.

Deferred Charges

Deferred charges represent expenditure that may be capitalised but does not
result in the creation of tangible assets. Deferred charges incurred during the
year have been written off as expenditure to the relevant service revenue account
in the year. Where the Council has determined to meet the cost of the deferred
charges from existing capital resources, a transfer to the Capital Adjustment
Account then reverses the amounts charged to the Statement of Movement on
the General Fund Balance so there is no impact on the level of Council Tax.




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                     Statement Of Accounts 2007-08


Fixed Assets

a.    Categories of assets

      Fixed assets are categorised into classes as follows:

      Operational assets:
      - Council Dwellings
      - Other land and buildings
      - Vehicles, plant, furniture and equipment
      - Infrastructure assets e.g. roads
      - Community assets e.g. parks and open spaces

      Non-operational assets:
      - Investment properties
      - Assets under construction
      - Surplus assets, held for disposal

b.    Recognition

      All expenditure on the acquisition, creation or enhancement of fixed assets
      is capitalised on an accruals basis. Expenditure on the acquisition of a
      tangible asset, or expenditure which adds to, and not merely maintains
      the value of an existing asset, is capitalised and classified as a fixed asset,
      provided that the asset yields benefits to the authority for a period of
      more than one year.

c.    Measurement

      Fixed assets are initially measured at cost. Only those costs that are
      directly attributable to bringing the asset into working condition for its
      intended use are included in its measurement.

      The Authority completed its first 5-year rolling programme of revaluation
      by category of asset in 1999/2000. Since then, the Head of Property and
      Technical Services as part of a commitment to keep the balance sheet
      valuations up-to-date has undertaken a programme of rolling revaluations.

      Operational land and properties and other operational assets are included
      in the balance sheet at open market value for existing use, or where this
      could not be assessed because the asset is specialised in nature, the
      depreciated replacement cost.

      Non-operational land and properties are included in the balance sheet at
      open market value.

      Infrastructure assets and community assets are included in the balance
      sheet at historical cost, net of depreciation. Where there is no historic
      cost, Community assets have been given a nominal value of £1.

      Vehicles, plant and equipment are valued on the basis of historical cost,
      net of depreciation.




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                     Statement Of Accounts 2007-08

      Revaluation Reserve

      Where a fixed asset is included in the balance sheet at current value, the
      difference between the amount at which the asset was included in the
      balance sheet immediately prior to the latest (re-)valuation is credited to
      the Revaluation Reserve to recognise unrealised gains. The Revaluation
      Reserve recognises gains from 1 April 2007 only, the date of its formal
      implementation. Gains arising before that date have been consolidated
      into the Capital Adjustment Account.

      Where an impairment loss is charged to the Income and Expenditure
      Account but there were accumulated gains in the Revaluation Reserve for
      that asset, an amount up to the value of the loss is transferred from the
      Revaluation Reserve to the Capital Adjustment Account.

      Any revaluation gains in the Revaluation Reserve where a fixed asset is
      disposed of or decommissioned are transferred to the Capital Adjustment
      Account.

      Revaluation gains are also depreciated, with an amount equal to the
      difference between current value and depreciated charged on assets and
      the depreciation that would have been chargeable based on their historic
      cost being transferred each year from the Revaluation Reserve to the
      Capital Adjustment Account.

d.    Disposals

      When an asset is disposed of or decommissioned, the value of the asset in
      the Balance Sheet is written off to the Income and Expenditure Account as
      part of the gain or loss on disposal. Receipts from the disposal of fixed
      assets are credited to the Income and Expenditure Account as part of the
      gain or loss on disposal. Any revaluation gains are written off to the
      Capital Adjustment Account. Amounts in excess of £10,000 are
      recognised as capital receipts. A proportion of receipts relating to housing
      disposals (75% for dwellings, 50% for land and other assets net of
      deductions and allowances) is payable into a Government pool. The
      balance of receipts is required to be credited to the Usable Capital Receipts
      Reserve, and can then only be used for new capital investment or set
      aside to reduce the council’s underlying need to borrow (the capital
      financing requirement). Receipts are appropriated to the Reserve from
      the Statement of Movement on the General Fund Balance.

      The written off value of disposals is not a charge against council tax, as
      the cost of fixed assets is fully for under separate arrangements for capital
      financing. Amounts are appropriated to the Capital Adjustment Account
      from the Statement of Movement on the General Fund balance.

e.    Impairment

      The value of fixed assets included in the balance sheet is reviewed at the
      end of each reporting period and where there is reason to believe that its
      value has changed materially in the period, the valuation is adjusted
      accordingly. Where the impairment is caused by a clear consumption of
      economic benefits, then a charge is made to the service revenue account.
      Other impairments, reflecting a general fall in prices, would be written off



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                        Statement Of Accounts 2007-08

       against any gains attributable to the relevant asset in the Revaluation
       Reserve, with any excess charged to the relevant service revenue account.

f.     Depreciation

       Depreciation is provided on all fixed assets except for freehold land,
       investment properties, assets under the course of construction and fixed
       assets where the charge would not be material, due to a high residual
       value or long useful economic life. Straight-line depreciation is used,
       based on an assessment of the life of the asset.

g.     Charges For the Use of Fixed Assets

       General fund service revenue accounts, central support services and
       trading accounts are charged with a capital charge for all fixed assets used
       in the provision of the service. Such charges cover:

                   the annual provision for depreciation, where appropriate.

                   impairment losses attributable to the clear consumption of
                    economic benefits on tangible fixed assets used by the service
                    and other losses where there are no accumulated gains in the
                    Revaluation Reserve against which they can be written off

                   amortisation of intangible fixed assets attributable to the
                    service

       However, in order to disclose the Authority’s corporate net operating
       expenditure and movement on its General Fund balance capital charges to
       services need to be reversed out in the Statement of Movement on the
       General Fund Balance by way on an adjusting transaction with the Capital
       Adjustment Account.

h.     Government Grants And Other Contributions (Capital)

       Grants and other contributions relating to fixed assets are credited to a
       government grants deferred account and released to revenue over the
       expected useful life of the asset. Thus, the related asset is recorded at its
       gross current value in the balance sheet, and the grant is written off over
       the life of the asset, thereby matching the depreciation of the asset.

Intangible Assets

Intangible assets are assets that, although do not have a physical substance
yields a benefit to the authority for more than one year. The intangible assets
accounted for in the Balance Sheet relate to software licences, where the costs of
acquiring the licences have been capitalised on an accruals basis. Capital
expenditure on the acquisition of a software licence is recognised as an intangible
asset and they are therefore measured at cost. Amortisation is provided on
intangible assets based on the useful economic life, which has been determined
to be four years. Charges for the use of intangible assets and any associated
funding via Government Grants and other contributions are treated using exactly
the same methods as for tangible fixed assets explained in notes g and h above.




Page 15 of 83
                        Statement Of Accounts 2007-08


Government Grants And Contributions (Revenue)

Whether paid on account, by installments or in arrears, Government grants and
third party contributions and donations are recognized as income at the date that
the Authority satisfies the conditions of entitlement to the grant/contribution and
there is reasonable assurance that the monies will be received. Revenue grants
are matched in revenue accounts with the service expenditure to which they
relate. Grants to cover general expenditure (e.g. Revenue Support Grant) are
credited to the foot of the Income and Expenditure Account after Net Operating
Expenditure. The treatment of government grants for fixed assets is explained
above.

Investments

Investments are carried at cost. If the value of an investment falls below its cost,
the investment is written down to market value and a provision for the unrealised
loss made in the Income and Expenditure Account if this is unlikely to be a
temporary fall.

Financial Instruments

Financial Instruments represent any contract that gives rise to a financial asset in
one entity and a financial liability or equity instrument of another entity.

Financial liabilities are initially measured at fair value and carried at their
amortised cost. Annual charges to the Income and Expenditure Account for
interest payable are based on the carrying amount of the liability, multiplied by
the effective rate of interest for the instrument. The Council currently has no
external borrowings or other material Financial Liabilities that require separate
disclosure.

Financial Assets are initially measured at fair value and carried at their amortised
cost. Annual credits to the Income and Expenditure Account for interest
receivable is based on the carrying amount of the asset multiplied by the effective
rate of interest for the instrument. For the loans that the council has made this
means that the amount presented in the Balance Sheet is the outstanding
principal receivable and interest credited to the Income and Expenditure Account
is the amount receivable for the year in the loan agreement.

Financial Assets that give rise to a disclosure under this accounting policy cover
items such as loans and receivables and include areas such as investments and
the provision of loans to voluntary organisations at less than market rates. The
Council currently has no significant transactions of this nature, however, the
amounts are disclosed in the notes to the Accounting Statements.

Leases

The accounting statements reflect the requirements of SSAP21 Accounting for
lease and hire purchase contracts. SSAP21 introduced the concept of two types of
lease transaction occurring between lessors and lessees, operating leases and
finance leases. An operating lease involves the lessee paying a rental for the hire
of an asset for a period of time, which is normally substantially less than its
useful economic life. The lessor retains most of the risks and rewards of
ownership of an asset in the case of an operating lease.



Page 16 of 83
                      Statement Of Accounts 2007-08

A finance lease usually involves payment by a lessee to a lessor of the full cost of
the asset together with a return on the finance provided by the lessor. The lessee
has substantially all the risks and rewards associated with the ownership of the
asset, other than the legal title.

Operating leases are accounted for by making charges to revenue as expenditure
is incurred.

Retirement Benefits

Employees of the Council are entitled to be members of the Local Government
Pension Scheme, administered by Devon County Council. The Local Government
Pension Scheme is accounted for as a defined benefit scheme:

*      The liabilities of the Devon pension scheme attributable to the Council are
       included in the balance sheet on an actuarial basis using the projected unit
       method i.e. an assessment of the future payments that will be made in
       relation to retirement benefits earned to date by employees, based on
       assumptions about mortality rates, employee turnover rates etc. and
       projections of future earnings for current employees.

*      Liabilities are discounted to their value at current prices, using a discount
       rate based on the indicative rate of return on high quality corporate bond
       (AA Corporate Bond).

*      The assets of the Devon pension fund attributable to the Council are
       included in the balance sheet at their fair value:

       *      Quoted securities – mid market value
       *      Unquoted securities – professional estimate
       *      Unitized securities – average of the bid and offer rates
       *      Property – market value

*      The change in the net pensions liability is analysed into seven
       components:

       *      Current service cost – the increase in liabilities as a result of years
              of service earned this year – allocated to the revenue accounts of
              services for which the employee works;
       *      Past service costs – the increase in liabilities arising from current
              year decisions whose effect relates to years of service earned in
              earlier years – debited to the net cost of service as part of non-
              distributed costs;
       *      Interest cost – the expected increase in the present value of
              liabilities during the year as they move one year closer to being
              paid – debited to net operating expenditure;
       *      Expected return on assets – the annual investment return on the
              fund assets attributable to the Council, based on an average of the
              expected long term return – credited to net operating expenditure;
       *      Gains, losses on settlements and curtailments – the result of
              actions to relieve the Council of liabilities or events that reduce the
              expected future service or accrual of benefits of employees –
              debited to the net cost of service as part of non distributed costs;
       *      Actuarial gains and losses – changes in the net pensions liability
              that arise because events have not coincided with assumptions



Page 17 of 83
                      Statement Of Accounts 2007-08

              made at the last actuarial valuation or because the actuaries have
              updated their assumptions – not charged to revenue;
         *    Contributions paid to the Devon pension fund – cash paid as
              employer’s contributions to the pensions fund.

Statutory provisions limit the Council to raising Council Tax to cover the amounts
payable by the Council to the pension fund in the year. In the Income and
Expenditure Account/Movement on General Fund Balance this means that there is
a contribution from the Pension Reserve to remove the notional debits and credits
for retirement benefits and replace them with debits for the cash paid to the
pension fund and any amounts payable to the fund but unpaid at the year end.

The Council also has restricted powers to make discretionary awards of
retirement benefits in the event of early retirement. Any liabilities estimated to
arise as a result of the award are accrued in the year of the decision to make the
award and awarded by using the policies detailed above for the Local Government
Pension Scheme.

Provisions

Provisions are made where an event has taken place that gives the Council an
obligation that probably requires settlement by a transfer of economic benefit,
but where the timing of the transfer is uncertain. For example, a grant to a local
organisation for a capital scheme where the grant is not payable until other
external funding has been secured and works suitably advanced.

Provisions are charged to the appropriate revenue account when the Authority
becomes aware of the obligation, based on the best estimate of the likely
settlement. When payments are actually made they are charged to the provision
set up in the balance sheet. Estimated settlements are reviewed at the end of
each financial year – where it becomes more likely than not that a transfer of
economic benefit will not be required, the provision is reversed and credited back
to the relevant revenue account.

Reserves

The Council sets aside amounts as reserves for future policy purposes or to cover
contingencies. Reserves are created by transferring amounts from the Income
and Expenditure Account; when expenditure to be financed from the reserve is
incurred, it is charged to the appropriate revenue account and a transfer is made
from the reserve to the Income and Expenditure Account so that there is no net
charge at the time of expenditure.

Certain reserves are kept to manage the accounting processes for tangible fixed
assets and retirement benefits and do not represent usable resources for the
Council – these reserves are explained in the relevant policies.

Stocks

Stocks are included in the balance sheet at the lower of cost and net realisable
value.

Support Services And Other Overheads

The cost of overheads and support services are charged to those that benefit
from the supply or service in accordance with the costing principles of the CIPFA


Page 18 of 83
                      Statement Of Accounts 2007-08

Best Value Accounting Code Of Practice 2006. The total absorption costing
principle is used – the full cost of overheads and support services are shared
between users in proportion to the benefits received, with the exception of:

*      Corporate and Democratic Core – costs relating to the Council’s status as a
       multi-function democratic organisation.

*      Non distributed costs – the cost of discretionary benefits awarded to
       employees retiring early.

These two cost categories are accounted for as separate headings in the Income
and Expenditure Account as part of net cost of services.

Value Added Tax

The Council does not include VAT as part of income or expenditure, except where
it is unable to recover VAT from Customs and Excise.

Group Accounts

Although the Council does not have arrangements that give rise to the full
adoption of Group Accounts the North Devon Crematorium has been treated as a
joint arrangement with Torridge District Council that is not an entity. The
arrangements are based upon an estimated 60:40 split of all assets and liabilities.
The Income and Expenditure Account and Balance Sheet include this authority’s
share of the income, expenditure, assets and liabilities of the Crematorium.
Comparative figures for 2006-07 have also been restated to reflect the final
2006-07 Crematorium Accounts.




Page 19 of 83
                       Statement Of Accounts 2007-08



 STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF
                     ACCOUNTS

The Authority’s Responsibilities

The Authority is required to:

   make arrangements for the proper administration of its financial affairs and to
    secure that one of its officers has the responsibility for the administration of
    those affairs. In this Authority, that officer is the Chief Financial Officer;
   manage its affairs to secure economic, efficient and effective use of resources
    and safeguard its assets;
   approve the Statement of Accounts.

The Accounts And Audit Regulations 2003 require the person presiding at the
meeting that has approved the Statement of Accounts to sign and date the
Accounts accordingly. The Chairman’s signature is set out below:




The Chief Financial Officer’s Responsibilities

The Chief Financial Officer is responsible for the preparation of the Authority’s
Statement of Accounts in accordance with proper practices, as set out in the
CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United
Kingdom (‘Code of Practice’).

In preparing this Statement of Accounts, the Chief Financial Officer has:

   selected suitable accounting policies and then applied them consistently;
   made judgements and estimates that were reasonable and prudent;
   complied with the Code of Practice.

The Chief Financial Officer has also:

   kept proper accounting records which were up to date;
   taken reasonable steps for the prevention and detection of fraud and other
    irregularities.




Page 20 of 83
                       Statement Of Accounts 2007-08


                     THE ACCOUNTING STATEMENTS

         INCOME AND EXPENDITURE ACCOUNT 2007/08

This statement shows the Gross Expenditure, Income and Net Expenditure for
Council Services funded by the Council Taxpayer and by Central Government.


   Actual                                                                    Actual
  2006/07                                                                   2007/08
Net                                                   Notes      Gross       Gross        Net
Expenditure                                                   Expenditure   Income     Expenditure
       £’000                                                        £’000      £’000         £’000

        937    Central Services to the Public                      8,159     (7,349)          810
     10,957    Cultural, environmental and            (*)         17,576     (5,361)       12,215
               planning services
      (732)    Highways, roads and transport                       2,293     (3,114)         (821)
               services
      1,156    Housing services                                   23,122    (21,314)        1,808
      1,662    Corporate and democratic core                       1,739        (58)        1,681
        324    Non distributed costs                                 822           0          822

    14,304     Net Cost of Services                   1           53,711    (37,196)       16,515

         97    Loss on the disposal of fixed assets                  106          0           106
      1,054    Parish Council Precepts                             1,182          0         1,182
          3    Other levies                                             3         0              3
          6    (Surplus)/Deficit on trading                           (2)         0            (2)
               undertakings not included in the Net
               Cost of Services
          1    Interest payable and similar charges                    7           0             7
      (106)    Other Operational income and                          583       (889)         (306)
               expenditure
          3    Contribution of housing capital                        16          0            16
               receipts to Government Pool
      (919)    Interest and investment income         (*)              0       (980)         (980)
        160    Pensions interest cost and expected    16             180           0           180
               return on pensions assets

    14,603     Net Operating Expenditure                                                   16,721

    (6,016)    Demand on the Collection Fund                                               (6,326)
    (1,329)    General government grants                                                   (1,650)
    (6,136)    Non-domestic rates redistribution                                           (6,595)

      1,122    Deficit for the year                                                         2,149




(*) indicates where figures for 2006-07 have been restated in order to
incorporate the accounts of the North Devon Crematorium.




Page 21 of 83
                           Statement Of Accounts 2007-08


STATEMENT OF MOVEMENT ON THE GENERAL FUND BALANCE
                    2007/08


2006/07                                                                              2007/08
  £’000                                                               Notes             £’000

  1,122       Deficit for the year on the Income and Expenditure       (*)               2,149
              Account

(1,131)       Net additional amount required by statute and non-       13              (1,916)
              statutory proper practices to be debited or credited
              to the General Fund

    (9)       (Increase) /Decrease in the General Fund Balance               (*)           233
              for the Year

(1,722)       General Fund Balance brought forward                           (*)       (1,731)

(1,731)       General Fund Balance carried forward                                    (1,498)


(*) indicates where figures for 2006-07 have been restated in order to
incorporate the accounts of the North Devon Crematorium.

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 2007/08
2006/07                                                                            2007/08
    £’000                                                            Notes              £’000

   1,122       Deficit for the year on the Income and                      (*)         2,149
               Expenditure Account

   2,047       (Surplus) / deficit arising on revaluation of fixed    14                (635)
               assets

     180       Actuarial (gains)/losses on pension fund assets                        (3,910)
               and liabilities
               Movement on the Collection Fund Balance                                    22


          0    Any other (gains) / losses required to be                                   0
               included in the Statement of recognised gains
               and losses

   3,349       Total recognised (gains) / losses for the                             (2,374)
               year


(*) indicates where figures for 2006-07 have been restated in order to
incorporate the accounts of the North Devon Crematorium.

The total recognised losses for 2006-07 included in the published statement of
accounts amounted to £3.398m. The impact of including the proportion of the
North Devon Crematorium Accounts for 2006-07 has reduced this loss by
£0.049m to £3.349m.




Page 22 of 83
                        Statement Of Accounts 2007-08


                          BALANCE SHEET 2007/08

This shows the financial position of the Council as a whole and summarises its
assets and liabilities at the 31 March 2008. (*) indicates where figures have been
restated in order to incorporate the accounts of the North Devon Crematorium
and (**) indicates prior period adjustments made to incorporate the new
Revaluation Reserve and Capital Adjustment Account, which replaced the Fixed
Asset Restatement Account and Capital Financing Account as at 1 April 2007.

31st March 2007                                                           Notes    31st March 2008
            £’000                                                                   £’000       £’000
                    FIXED ASSETS                                          15
              69    Intangible Fixed Assets                                            65
                    Tangible Fixed Assets
                    Operational Assets:
          50,371    Other land and buildings                              (*)      51,247
           2,252    Vehicles, plant, furniture and equipment              (*)       2,273
             998    Infrastructure assets                                           1,035
             151    Community assets                                      (*)         404
                    Non-operational assets:
           8,900    Investment Properties                                           9,696
             829    Assets under construction                                       1,672
          63,570    Total Fixed Assets                                                        66,392

           2,000    Long-term Investments                                 19                   1,058
              90    Long-term debtors                                                             84
          65,660    TOTAL LONG TERM ASSETS                                                    67,534

             128    Stocks and work in progress                           20          139
           5,200    Debtors                                               21        5,220
          10,069    Investments                                           19(*)     8,557
              85    Cash and Bank                                                     426
          15,482                                                                              14,342
          81,142    Total Assets                                                              81,876
                    Current Liabilities
               0    Short-term borrowing                                                 0
         (4,371)    Creditors                                             22(*)    (5,041)
           (497)    Deferred Income                                       22         (344)
               0    Bank Overdraft                                                       0
         (4,868)                                                                              (5,385)
          76,274    TOTAL ASSETS LESS CURRENT LIABILITIES                                      76,491

                    Long-term Liabilities
               0    Long-term borrowing                                   23                        0
           (150)    Provisions                                            24                    (164)
        (10,056)    Capital Grants Deferred                               25                  (9,949)
         (1,282)    Capital Grants Un-applied                             25                  (2,124)
           (125)    Deferred Income                                                             (452)
        (18,776)    Liability related to defined benefit pension scheme   16                 (15,543)
          45,885    TOTAL ASSETS LESS LIABILITIES                                              48,259
                    Financed by:
               0    Revaluation Reserve                                   26                      509
          53,840    Capital Adjustment Account                            27 (*)               55,865
           4,764    Usable Capital Receipts Reserve                       28                    1,284
              25    Collection Fund – to NDDC                                                       4
              45    Deferred Capital Receipts                             29                       23
        (18,776)    Pension reserve                                       16                 (15,543)
           1,731    General Fund Balance                                  (*)                   1,499
           4,256    Earmarked reserves                                    18(*)                 4,618
          45,885    TOTAL NET WORTH                                                            48,259



Page 23 of 83
                        Statement Of Accounts 2007-08


                            CASH FLOW STATEMENT

This Statement summarises the inflows and outflows of cash arising from
transactions with third parties for Revenue and Capital purposes.

2006/07                                                              2007/08    2007/08     Notes
 £000                                                                 £000       £000
            REVENUE ACTIVITIES
            Cash Outflows
  11,460      Cash Paid To and On Behalf Of Employees                  12,418
  11,278      Other Operating Cash Payments                            11,340
  24,266      Housing Benefit Paid Out                                 25,302
  23,546      National Non Domestic Rate Payments to National Pool     23,547
  40,321      Precepts Paid                                            42,769
       3      Payments to the Capital Receipts Pool                        16
 110,874                                                                         115,392
            Cash Inflows
    (439)     Rents (After Rebates)                                     (456)
 (45,410)     Council Tax Receipts                                   (47,444)
 (22,716)     National Non Domestic Rate Receipts from Ratepayers    (23,458)
  (6,136)     Non Domestic Rate Income                                (6,595)
  (1,184)     Revenue Support Grant                                   (1,107)
 (24,257)     DWP Grants For Benefits                                (26,959)               37
  (1,938)     Other Government Grants                                 (1,463)               37
  (8,390)     Cash Received For Goods And Services                    (9,163)
(110,470)                                                                       (116,645)

     404    Net Cash (Inflow)/Outflow Revenue Activities                          (1,253)   34

            RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
        1   Cash Outflows – Interest Paid                        7
    (646)   Cash Inflows – Interest Received               (1,086)
    (645)                                                                         (1,079)
            CAPITAL ACTIVITIES
            Cash Outflows
   1,935      Purchase Of Fixed Assets                                  4,999
     583      Other Capital Cash Payments                               3,197
   2,518                                                                           8,196
            Cash Inflows
  (1,232)     Sale Of Fixed Assets                                      (641)
  (1,278)     Capital Grants Received                                 (2,821)
        0     Other Capital Cash Receipts                             (1,000)
  (2,510)                                                                         (4,462)

    (233)   Net Cash (Inflow)/Outflow Before Financing                             1,402

            MANAGEMENT OF LIQUID RESOURCES
     250    Net Increase/(Decrease) In Short Term Deposits                        (1,743)   36

            FINANCING
            Cash Outflows
       0      Repayments Of Amounts Borrowed                                           0
            Cash Inflows
       0      New Loans Raised                                                          0
       0      New Short Term Loans                                                      0
      17                                                                            (341)
            INCREASE/(DECREASE) IN CASH
     (17)   Cash                                                                     341    35




Page 24 of 83
                      Statement Of Accounts 2007-08



                             COLLECTION FUND

These Statements represent the transactions of the Collection Fund, a statutory
fund separate from the main accounts of the Authority. The Fund accounts
independently for income from council tax, community charges and non -
domestic rates on behalf of those authorities for which the income has been
raised. Administration costs of collection are borne by the Income and
Expenditure Account.

2006/07                                                              2007/08   Notes
   £000                                                                 £000
           EXPENDITURE
           Precepts
 32,926      Devon County Council                                     34,885
  6,009      North Devon District Council                              6,319
  4,228      Devon and Cornwall Police Authority                       4,488
  2,063      Devon and Somerset Fire & Rescue Authority                2,162

           Business Rates
 22,604      Payments to National Pool                                23,482
    188      Costs Of Collection                                         189

   (263)   Bad Debts Written Off                                       (212)
     214   Increase In Provision For Bad Debts                           236

      57   Distribution of Previous Year’s Revenue Account Surplus       59    38

       7   Other Adjustments                                              0

 68,033    TOTAL EXPENDITURE                                          71,608

           INCOME
 39,431    Council Tax                                                41,617   39
 22,733    Business Rates                                             23,690   40
  5,967    Council Tax Benefits                                        6,117   41

       0   Contribution To Previous Year’s Revenue Account Deficit        0

 68,131    TOTAL INCOME                                               71,424

     98    (Deficit)/Surplus                                           (184)
    117    Balance At Beginning Of Year                                  215

    215    BALANCE AT END OF YEAR                                        31




Page 25 of 83
                         Statement Of Accounts 2007-08



                           NOTES TO THE ACCOUNTS

Note 1   Service Expenditure

This statement shows the Gross Expenditure, Income and Net Expenditure analysed by
Service, which is then summarised in the Income and Expenditure Account.

 2006/07 Actual                                                            2007/08 Actual
  Net Expenditure                                            Expenditure     Income     Net Expenditure
            £000                                                   £000        £000               £000
                     CENTRAL SERVICES TO THE PUBLIC
             545     Local Tax Collection                        7,297   (6,931)                   366
             149     Elections                                     281       (31)                  250
              77     Emergency Planning                             63          0                   63
           (203)     Local Land Charges                            218     (387)                 (169)
             369     General Grants, Bequests & Donations          300          0                  300
            937                                                  8,159  (7,349)                   810
                     CULTURAL, ENVIRONMENTAL AND PLANNING SERVICES
             998     Culture and Heritage                        1,206     (108)                1,098
             645     Recreation and Sport                        1,039     (320)                   719
             745     Open Spaces                                   852       (66)                  786
             336     Tourism                                         6          0                    6
              49     Cemetery, Cremation and Mortuary Services     496     (475)                    21
               6     Coast Protection                                8          0                    8
          1,600      Environmental Health                        2,051     (403)                1,648
             273     Community Safety (Crime Reduction)            461     (105)                   356
              33     Flood Defence and Land Drainage                35          0                   35
            (13)     Agricultural and Fisheries Services            17       (33)                 (16)
             974     Street Cleaning                               890        (7)                  883
          2,802      Waste Collection                            4,704   (2,172)                2,532
             127     Building Control                              461     (398)                    63
          1,172      Development Control                         1,901     (645)                1,256
             178     Planning Policy                               271        (1)                  270
              54     Environmental Initiatives                     240     (174)                    66
             377     Economic Development                        1,161     (281)                   880
             643     Community Development                       1,777     (173)                1,604
         10,999                                                17,576   (5,361)                12,215
                     HIGHWAYS, ROADS AND TRANSPORT SERVICES
              37     Highway Maintenance                            34          0                    34
         (1,625)     Parking Services                              971   (2,694)                (1,723)
             736     Public Transport                              878     (145)                    733
             120     Airport, Harbours and Toll Facilities         410     (275)                    135
          (732)                                                  2,293  (3,114)                  (821)
                     HOUSING SERVICES
              117    Housing Strategy                              148       (18)                   130
              405    Housing Advice                                699       (99)                   600
               (2)   Housing Advances                                2        (4)                    (2)
              380    Private Sector Housing Renewal              1,529   (1,052)                    477
              303    Homelessness                                  641     (313)                    328
            (276)    Housing Benefit Payments                   19,185  (19,224)                   (39)
                14   Other Council Property                         19        (9)                     10
              215    Housing Benefit Administration                899     (595)                    304
           1,156                                               23,122  (21,314)                  1,808
                     CORPORATE AND DEMOCRATIC CORE
           1,238     Democratic Representation and Management    1,197        (4)                1,193
             424     Corporate Management                          542       (54)                  488
           1,662                                                 1,739      (58)                 1,681
                     NON DISTRIBUTED COSTS
            324      Other Unapportionable Central Overheads       822          0                 822
            324                                                    822          0                 822
         14,346                                                53,711  (37,196)                16,515




Page 26 of 83
                        Statement Of Accounts 2007-08



Note 2 – Trading Services

The following table analyses trading activities engaged in during the year.

                                                         2007/2008                 2006/2007

                                           Expenditure      Income       Net          Net
                                                                      (surplus)/   (surplus)/
                                                                        Deficit      Deficit
                                                  £000        £000        £000           £000
Trading Services With The Public
Car Parks                                        1,053      (2,694)    (1,641)         (1,606)
South Molton Cattle Market                          16         (33)       (17)            (13)
Pannier Market                                     304        (270)         34               3
Corporate Properties/Industrial Units              777        (462)        315            (84)
Ilfracombe Harbour                                 376        (275)        101             126
Seaside Undertakings                                 9         (25)       (16)            (13)
Trade Waste & Skips                                758        (800)       (42)            (74)

Trading With Other Public Bodies
Engineers                                           319       (321)         (2)                 6

                                                 3,612      (4,880)    (1,268)         (1,655)

Note 3 – Section 137 Expenditure

Section 137 of the Local Government Act 1972, as amended, empowers Local
Authorities to make contributions to certain charitable funds, not for profit bodies
providing a public service in the United Kingdom and mayoral appeals. The
council’s expenditure under this power was £63,133 mainly on Advise to
Organisations working in the local area (£97,515 in 2006/07).

Note 4 – Agency Services

Under the Waters Acts, Local Authorities may act as Agents for Water Companies
and the Council has an agency agreement with South West Water whereby the
council is responsible for managing sewerage works on behalf of South West
Water. South West Water reimburses the council for this work, including a
contribution towards administrative costs.

                                        2006/07           2007/08
                                         £’000             £’000
Engineers Costs                               109                88
Administrative Costs                           14                11
Total Amount Reimburseable                    123                99




Page 27 of 83
                      Statement Of Accounts 2007-08

Note 5 – Expenditure On Publicity

Section 5(1) of the Local Government Act 1986 requires a local authority to keep
a separate account of its expenditure on publicity. Expenditure in the year is
summarised below:-

       2006/07                                                             2007/08
          £000                                                                £000

             70    Publicity                                                        70
             57    Staff Advertising                                                67
            179    Press & Public Relations Staffing & Other Costs                 212
            306                                                                    349

Note 6 – Leasing

Authority as Lessee

The Authority uses photocopiers financed under terms of an operating lease. The
amount paid under these arrangements in 2007/08 was £20,903 (2006/07
£21,173). The SORP requires charges to be made evenly throughout the period
of the lease.

The Authority was committed at 31st March 2008 to making payments of £24,895
under operating leases in 2008/09, comprising the following elements:

                             Vehicles, Plant &
                             Equipment
Leases expiring in                                     0
2008/09
Leases expiring between                          24,895
2009/10 and 2012/13
Leases expiring after                                  0
2012/13

The authority, acting as lessee has no material commitments under Finance
Leases.

Authority as Lessor – Operating Leases

The authority has granted the lease of 108 assets under operating leases with
terms ranging from 1 – 999 years. The value and analysis of these operating
leases are shown in the table below.

    Asset Classification            Value        Accumulated      Amount Receivable
                                    £000         Depreciation        per annum
                                                    £000                £000
Land and Buildings                   17,592              2,900                  170
Commercial Property                   4,520                   0                   4
Land not Developed                      292                   0                    0
Total                                22,404              2,900                  174

There are 4 assets that attribute a large proportion of the asset value held for
leases under land and buildings and they are;




Page 28 of 83
                     Statement Of Accounts 2007-08

North Devon Leisure Centre - £6,378,579
Landmark Theatre, Ilfracombe - £4,287,652
Tarka Tennis Centre - £3,082,241
Ilfracombe Swimming Pool - £1,069,243

The Landmark Theatre, although identified and included in the above disclosure
as being run under an operating lease is currently not subject to a contractual
lease agreement. Lease terms have been drafted and discussed between the
Council and North Devon Theatre’s Trust, but too date has not been finalised and
signed by either party. However, the Theatre’s Trust does operate under the
main conditions set out in the lease documentation.

Authority as Lessor – Finance Leases

The authority has granted 19 long term leases to a variety of organisations, which
are accounted for as Finance Lease. The aggregate rentals receivable in 2007-08
were £146,207. The element of these rentals attributable to finance costs
(£78,844) has been credited to the Income and Expenditure Account. The
balance of £66,363 representing consideration for the acquisition of the interest
in the asset has been accounted for as a gain on disposal in the Income and
Expenditure Account and credited to the Usable Capital Receipts Reserve via the
Statement of Movement on the General Fund Balance.

The net investment in finance leases of assets was £1,849,851 as at 31 March
2008. The authority has not acquired any assets specifically for the purpose of
letting under finance leases during 2007-08.

Note 7 – Employees Remuneration

The following statement sets out the number of employees whose total annual
remuneration exceeds £50,000 (remuneration includes salary, allowances
chargeable to tax and the monetary value of non cash benefits):

Number of Employees      Remuneration Between      Number of Employees
2006/07                  £                         2007/08

                     3   50,000   –   60,000                             7
                     1   60,000   –   70,000                             1
                     1   70,000   –   80,000                             2
                     1   80,000   –   90,000                             0
                     0   90,000   –   100,000                            1

Note 8 – Local Authorities (Goods And Services) Act 1970

The Council is empowered by this Act to provide goods and services to other
public bodies. The Authority’s Works Unit provided toilet cleaning services for
Devon County Council amounting to £81,354 in the year (£85,000 in 2006/07).
The Parks Unit provided grass cutting and shrub maintenance services to Devon
County Council amounting to £55,007 in the year (£42,000 in 2006/07).




Page 29 of 83
                      Statement Of Accounts 2007-08

Note 9 – Members Allowances

The Council paid the following amounts relating to Members’ Allowances in the
year:

2006/07                                                       2007/08
     £000                                                            £000

       267    Members Allowances                                        277
        17    Travelling And Subsistence Allowance                       19
       284                                                              296


Note 10 – Related Party Transactions

Authorities are obliged to disclose material transactions between itself and related
parties not disclosed elsewhere in the Statement of Accounts. In respect of
Members, this information was obtained by requesting a declaration to be
completed by Members and Senior Officers and the Register of Members’
interests. The transactions are set out below:

During the year, works and services amounting to £24,401 (£30,057 in
2006/2007) were commissioned by the Council from undertakings in which three
Members had a significant interest (C & C Electrics and West of England Fire
Protection). Contracts were entered into for these services in full compliance with
the Council’s Standing Orders and Financial Regulations.

Grants amounting to £61,562 (£250,716 in 2005/2006) were paid in the year to
organisations (Braunton School and TLC) in which two Members had declared a
significant interest. The Grants were made after proper consideration of
declarations of interest from the Members concerned. The Council received
£64,601 (£70,691 in 2006/2007) in the year from the North Devon Joint
Crematorium Committee being the proportion due of the Committee’s annual
surplus.

Central Government has effective control over the general operations of the
Council – it is responsible for providing the statutory framework within which the
Council operates, provides a significant element of its funding in the form of
grants and prescribes the terms of many of the transactions that the Council has
with other parties. Details of transactions with Government Departments are set
out in a note to the Cash Flow statement.




Page 30 of 83
                        Statement Of Accounts 2007-08



Note 11 – Building Control Trading Account

The Building (Local Authority Charges) Regulations 1998 require the disclosure of
information regarding the setting of charges for the administration of the Building
Control function. North Devon District Council sets charges for work carried out
in relation to building regulations, with the aim of covering all costs incurred.
However, certain activities performed by the Building Control Unit cannot be
charged for, such as providing general advice and liaising with other statutory
authorities. The statement below shows the total cost of operating the Building
Control Unit, divided between the chargeable and non chargeable activities.

Building Regulations                    Non Chargeable      Chargeable       Total Building
Charging Account                        2007/08             2007/08          Control 2007/08
                                                   £000            £000                   £000
Expenditure

Employees                                              54            255                  309
Premises                                                0              0                    0
Transport                                               5             22                   27
Supplies and Services                                   4             18                   22
Capital Financing                                       1              3                    4
Central & Support Service charges                      25             95                  120
Total Expenditure                                      89            393                  482

Income

Building Regulation Charges                             0          (394)                 (394)
Miscellaneous Income                                 (24)              0                  (24)
Total Income                                         (24)          (394)                 (418)

(Surplus)/Deficit for Year                             65             (1)                  64

Comparatives for 2006/07

Expenditure                                           108            412                   520
Income                                               (22)          (370)                 (392)
(Surplus)/Deficit for Year                             86             42                   128

Note 12 – Audit Costs

The Council incurred the following fees relating to external audit and inspection:

2006/7                                                                      2007/08
   £000                                                                         £000
    103      Fees payable in respect to external audit services carried           108
             out by appointed auditor
      18     Fees payable in respect of statutory inspection                       13
      28     Fees payable for the certification of grant claims and                33
             returns
         0   Fees payable in respect of other services provided by the               3
             appointed auditor
     149                                                                          157




Page 31 of 83
                        Statement Of Accounts 2007-08


Note 13 – Statement of the Movement on the General Fund Balance

The Income and Expenditure Account brings together all of the functions of the
authority and summarises the all of the resources that the authority has
generated, consumed or set aside in providing services during the year.
However, when the authority takes account of expenditure that must be included
when setting Council Tax there are a number of additional statutory provisions,
which need to be taken into account. It is only when these additional statutory
provisions are taken into account that a full presentation of the Authority’s actual
spending power available for future years is provided i.e. the General Fund
Balance. The Statement of the Movement on the General Fund Balance provides
the reconciliation between the Income and Expenditure Account and General Fund
Balance available. The following table details the reconciling items that are taken
into the Statement of Movement on the General Fund Balance:

2006/07                                                                                    2007/08
  £’000                                                                            Notes     £’000
           Amounts included in the Income and Expenditure Account but
           required by statue to be excluded when determining the
           Movement on the General Fund Balance for the year

   (23)    Amortisation on intangible fixed assets                                  15        (29)

(1,368)    Depreciation and impairment of fixed assets (*)                          15     (1,371)

    263    Government Grants Deferred amortisation                                  25        446

  (607)    Write downs of deferred charges to be financed from capital resources    (*)    (2,134)

   (97)    Net loss on sale of fixed assets                                                  (173)

(1,800)    Net charges made for retirement benefits in accordance with FRS17        16     (2,450)

(3,633)                                                                                    (5,712)
           Amounts not included in the Income and Expenditure Account
           but required to be included by statute when determining the
           Movement on the General Fund Balance for the year

     (3)   Minimum revenue provision for capital financing                          17         (0)

    857    Capital expenditure charged in-year to the General Fund Balance                   1,108

     (3)   Transfer from Usable Capital Receipts to meet payments to the            28        (16)
           Housing Capital Receipts Pool

  1,474    Employer’s contributions payable to the Pension Fund and retirement      16       1,773
           benefits payable directly to pensioners
  2,325                                                                                     2,865
           Transfers to or from the General Fund Balance that are
           required to be taken into account when determining the
           Movement on the General Fund Balance for the year

    177    Net transfer to or (from) earmarked reserves (**)                        18        362
           Net transfer to Usable Capital Receipts Reserve (***)                              568
   177                                                                                        930
           Net additional amount required to be credited to the General
(1,131)    Fund Balance for the year                                                       (1,916)




Page 32 of 83
                          Statement Of Accounts 2007-08

    (*) – the £2,134k write downs of deferred charges is accounted for net of
    Government grants received to finance the capital expenditure and also includes
    write downs to revenue of items previously held under assets under construction
    to the value of £181k.

    (**) - indicates where figures have been restated in order to incorporate the
    accounts of the North Devon Crematorium.

    (***) – where accounting practice requires that sums properly treated as capital
    receipts do not involve the disposal of a physical asset.

    Note 14 – Statement of Total Recognised Gains and Losses

    The Income and Expenditure Account brings together all of the functions of the
    authority and summarises the all of the resources that the authority has
    generated, consumed or set aside in providing services during the year.
    However, an authority will be recognising other gains and losses in its Balance
    Sheet that do not appear in the Income and Expenditure Account. The Statement
    of Total Recognised Gains and Losses (STRGL) is the statement that brings these
    other gains and losses together with the outturn on the Income and Expenditure
    Account to show the total movement in the Authority’s net worth for the year.

    Note 15 – Fixed Assets
    Fixed Assets have been valued in the Balance Sheet according to CIPFA’s Code of
    Practice on Local Authority Accounting. The Council revalues its assets on a rolling
    programme to ensure that all assets are revalued at least every five years.
    Revaluations are carried out by Mrs. D. Hill (B.A. Cert. Ed, ARICS.), an Estates
    Surveyor employed by the Council. Straight-line depreciation was charged on
    Fixed Assets where material, the charge being based on an assessment of the
    useful life of the asset. For buildings and infrastructure this ranged from 5 up to
    100 years and for vehicles, plant and equipment from 3 to 15 years.

    For 2007/08 the valuation was performed on the opening balances and
    depreciation was charged on the revalued asset. The following table shows the
    movement on Fixed Assets in 2007/08:
Operational Assets               Other Land &     Infra-      Vehicles      Community        Totals
                                 Buildings        structure Plant &         Assets
                                                              Equipment
                                           £000       £000           £000          £000        £000

Gross Value 1st April 2007                 53,494      1,069          6,019            151   60,733
Additions                                   1,101         50            611            316    2,078
Transfers (*)                                 317          0              0              0      317
Disposals                                   (278)          0              0              0    (278)
Revaluations                                  230          0              0              0      230
Gross Value 31st March 2008                54,864      1,119          6,630            467   63,080

Depreciation 1st April 2007                 3,123          71         3,768              0    6,962
Charge In Year                                507          12           590             63    1,172
Depreciation on Disposals                    (13)           0             0              0     (13)
Depreciation 31st March 2008                3,617          83         4,358             63    8,121

Net Book Value 31st March 2008             51,247      1,036          2,272            404   54,959

Net Book Value 31st March 2007             50,371        998          2,251            151   53,771



    Page 33 of 83
                      Statement Of Accounts 2007-08


 Non Operational Assets              Investment        Assets Under       Totals
                                     Properties        Construction

                                              £000              £000        £000

 Gross Value 1st April 2007                   8,912              829       9,741
 Additions                                    1,090            1,661       2,751
 Transfers (*)                                  320            (818)       (498)
 Disposals                                    (200)                0       (200)
 Revaluations                                   293                0         293
 Impairments (**)                             (705)                0       (705)
 Gross Value 31st March 2008                  9,710            1,672      11,382

 Depreciation 1st April 2007                      13                  0        13
 Charge In Year                                    2                  0         2
 Depreciation 31st March 2008                     15                  0        15

 Net Book Value 31st March 2008               9,695            1,672      11,367

 Net Book Value 31st March 2007               8,899              829       9,728

 Intangible Assets                   Software     Totals
                                          £000      £000

 Gross Value 1st April 2007                 92          92
 Additions                                  25          25
 Disposals                                   0           0
 Revaluations                                0           0
 Gross Value 31st March 2008               117         117

 Amortisation 1st April 2007                 23         23
 Charge In Year                              29         29
 Amortisation 31st March 2008                52         52

 Net Book Value 31st March 2008              65         65

 Net Book Value 31st March 2007              69         69

(*) – The amount transferred from Assets under Construction represents the
historic capital investment expended on a number of projects. In certain cases
the expenditure has been transferred to the specific asset category i.e. Other
Land and Buildings (£317k) and Investment Properties (£320k). The individual
assets concerned will be re-valued in 2008-09 in order to ascertain whether and
to what extent the expenditure has added to the value of the asset. Should any
of the expenditure not have increased the asset value this will be treated as
impairment in the 2008-09 Statement of Accounts. The amount not accounted
for as transferred i.e. £181k has been written out to the revenue account
predominantly as Deferred Charges.

 (**) – The £705k reduction in asset value categorised as impairments is
predominantly relating to the Woodlands Enterprise Centre in South Molton. The
asset was constructed with sustainability being a key criterion. This specification
had an impact of increasing cost, the value of the asset is based upon the
capitalisation of market rent, which when compared to cost computed an



Page 34 of 83
                      Statement Of Accounts 2007-08

impairment of £684k. The asset is currently valued in the accounts at £680k. Its
current non-operational classification is based on the intended future of the asset
i.e. that the asset be transferred to North Devon +. However, a final transfer
date has yet to be determined.

Commitments Under Capital Contracts

Significant capital contracts entered into by the Council at 31st March 2008
together with the estimated value of the financial commitment are shown below:

31.03.07                                                        31.03.08
        £000                                                               £000
       1,022    Pathfields Managed Workspace                                  0
          64    Implementing E-Government                                     0
           0    Amory House                                                  97
       1,086                                                                 97

The Council owned the following assets as at 31st March 2008:

                                        Nos                                          Nos
 Beaches                                  2    Car Parks                              77
 Council Garages                         99    Community Assets                      112
 Leisure Centre/Swimming Pools            2    Markets                                 2
 Museums                                  4    Houses                                  3
 Theatres                                 2    Commercial Properties                 158
 Vehicles/Plant/Equipment               139    Public Conveniences                    41
 Allotments                              13    Offices                                 7
 Infrastructure Assets                   41    Undeveloped Land Assets                63
 Harbours                                 1    Other Land and Buildings               70
 Depot / Stores                           3    Intangible Assets                       4
 Tennis Centres                           1    Cemeteries & Crematoria                 3

Deferred Charges

Deferred Charges is the term given to items of Capital Expenditure incurred by
the Council but which do not result in an increase in value of its own Assets. The
best example of this is a Grant to a third party, such as a housing related
improvement grant or Disabled Facilities Grant. The movement in the year is set
out below:

Deferred Charges                                 Housing        Other         Total
                                                  Grants
                                                   £000          £000         £000

Balance at 1st April 2007                              0            0             0
Expenditure in Year                                1,312        1,884         3,196
Written down in Year                             (1,312)      (1,884)       (3,196)
Balance at 31st March 2008                             0            0             0




Page 35 of 83
                      Statement Of Accounts 2007-08


Capital Expenditure in the year was incurred and financed as follows:

    2006/07                                                                  2007/08
       £000     Capital Investment                                              £000
      1,295     Operational assets                                             2,816
        634     Non-operational assets                                         1.991
      1,333     Deferred charges                                               3,196
      3,262                                                                    8,003
                Sources of Finance
       1,368    Capital receipts                                                4,344
         990    Government grants and other contributions                       2,551
         662    Revenue contributions                                               0
         242    Capital Reserves                                                1,108
       3,262                                                                    8,003

Note 16 – Pension Costs arising

As part of the terms and conditions of employment of its employees, the
authority offers retirement benefits. Although these benefits will not actually be
payable until employees retire, the authority has a commitment to make the
payments and must therefore disclose this at the time that the employees earn
their future entitlement.

The Authority participates in the Devon County Council Pension Fund; this is a
defined benefit funded scheme. The Authority and employees make contributions
to the fund, which are calculated to balance the pensions liabilities with
investment assets.

We recognise the cost of retirement benefits in the Net Cost of Services when
employees earn them, rather than when the benefits are eventually paid as
pensions. However, the charge we are required to make against Council Tax is
based on the cash payable in the year, so the real cost of retirement benefits is
reversed out in the Statement of Movement on the General Fund Balance. The
following transactions have been made in the Income and Expenditure Account
and the Statement of Movement on the General Fund Balance during the year:

2006/07         Income and Expenditure Account                          2007/08
£000                                                                    £000
                Net Cost of Services
       1,490        Current service costs                                       1,610
         150        Past service costs                                            660
                Net Operating Expenditure
       3,120        Interest cost                                               3,570
     (2,960)        Expected return on assets in the scheme                   (3,390)

     (1,800)    Net Charge to the Income and Expenditure Account              (2,450)


2006/07         Statement of Movement on the General Fund Balance       2007/08
£000                                                                    £000
      1,800     Reversal of the net charges made for retirement               2,450
                benefits in accordance with FRS17
     (1,474)    Actual amount charged against the General Fund                (1,773)
                Balance for pensions in the year



Page 36 of 83
                       Statement Of Accounts 2007-08


Pension Assets And Liabilities

The underlying assets and liabilities for retirement benefits attributable to the
Authority at 31st March are as follows:

      2006/07                                                2007/08
          £m                                                     £m

       (64.05)    Estimated funded liabilities                (59.06)
        (3.35)    Estimated unfunded liabilities               (3.18)
         48.62    Share of assets                               46.70
       (18.78)    Net liability                               (15.54)

The liability shows the underlying commitment that the Authority has in the long
run to pay retirement benefits. The deficit will be made good by increased
contributions over the remaining working life of employees as assessed by the
scheme actuary.

The movement in net deficit for the year is as follows:

                                                                    £m

Net (deficit) at beginning of year                              (18.78)
Contributions paid                                                 1.78
Current service cost                                             (1.61)
Past service costs                                               (0.66)
Expected return on pension fund assets                             3.39
Interest on pension fund liabilities                             (3.57)
Actuarial (loss) / gain                                            3.91
Net (deficit) at end of year                                    (15.54)

Liabilities have been assessed on an actuarial basis using the projected unit
method, an estimate of the pensions that will be payable in future years
dependent on assumptions about mortality rates, salary levels, etc. The liabilities
have been assessed by Hewitt, Bacon and Woodrow, an independent firm of
actuaries and are based on the latest full valuation of the scheme as at 31 st March
2004.

The main assumptions used in their calculation have been:

    2006/07                                                       2007/08

       3.2%      Rate of inflation                                   3.7%
       4.7%      Rate of increase in salaries                        5.2%
       3.2%      Rate of increase in pensions                        3.7%
       3.2%      Rate of increase in deferred pensions               3.7%
       5.3%      Discount Rate                                       6.8%
        25%      Take up rate of option to convert annual             25%
                 pension into retirement grant




Page 37 of 83
                            Statement Of Accounts 2007-08



 Assets in the pension fund are valued at fair value, principally market value for
 investments, and consist of the following categories, by proportion of the total
 assets held by the fund:

   31st March 2007                                     Long Term     31st March
                                                          Return           2008
                     %                                         %             %

                  68.53   Equities                           7.6          64.85

                   9.95   Property                           6.6           8.82
                  13.72   Government Bonds                   4.6          15.85
                   0.80   Corporate Bonds                    6.8           1.04
                   7.00   Other                              6.0           9.44
                    100                                      6.9            100

 Actuarial Gains and Losses

 The actuarial gains / losses identified as movements on the Pension Reserve in
 2007/08 can be analysed into the following categories, measured as absolute
 amounts and as a percentage of assets or liabilities at 31 March 2008.

                     2003/04            2004/05            2005/06         2006/07          2007/08
                   £000   %          £000     %         £000     %       £000   %       £000     %
Differences        4,900 14.3           1,730   4.7       6,340    14      460   0.9    (5,370) (11.5)
between the
expected
and actual
return on
assets
Differences          (50)     0.1     (1,800)    3.2        30      0    (150)    0.2    1,100     1.8
between
actuarial
assumptions
about
liabilities and
actual
experience
Changes in            120     0.3    (11290)    19.9    (4,100)    6.5   (490)    0.7    8,180    13.2
the
demographic
and financial
assumptions
used to
estimate
liabilities
                    4,970            (11,360)    20      2,270     3.6   (180)    0.3    3,910     6.3




 Page 38 of 83
                         Statement Of Accounts 2007-08


 Note 17 – Minimum Revenue Provision

 The Authority has achieved debt free status and currently has no long-term debt
 outstanding, the Capital Financing Requirement has been calculated at
 (£327,701), therefore there is no requirement to provide for the Minimum
 Revenue Provision within the Statement of Movement on the General Fund
 Balance during 2007-08.

 Note 18 – Reserves

 The following net transfers to/(from) earmarked revenue funded reserves have
 been made in the year:

                                    Balance 1st   Movement    Transfers   Balance 31st
                                    April 2007    In Year     In Year     March 2008
                                    £000          £000        £’000       £000
Equal Pay                                  200         (36)           0           164
Customer Services                          175        (142)           0            33
Planning Enquiries Fund                      0           99           0            99
Improvement Programme Reserve               81          123           0           204
Office Technology Reserve                  104         (13)           0            91
Lynton Agency Fund                         129           59           0           188
PC Planned Maintenance Fund                173           43           0           216
PCL Vehicle Renewals Fund                  559          262           0           821
Capital Funding Reserve                   1630        (285)           0         1,345
Executive Contingency Reserve              246         (60)          64           250
Greensweep Replacement Fund                227          103           0           330
Planning Improvement Fund                  103            0           0           103
Executive Funding Reserve                   93            0        (64)            29
EPA Mercury Requirement                     86           97           0           183
Other                                      450          112           0           562

Totals                                   4,256         362            0         4,618

 The Authority has regulations governing the creation, purpose, control,
 management and review of all Reserves. The table below shows the purpose of
 each of the significant Reserves included above:

     Equal Pay (New)                Set aside for funding of potential equal pay
                                    claims
     Customer Access and Service    Funding of capital expenditure on improving
     (New)                          customer access and services.
     Planning Enquiries             Funding of Development Control and Forward
                                    Planning inquiries
     Improvement Programme          To finance some of the improvements contained
                                    within the improvement plan
     Office Technology              Annual contribution from revenue to fund
                                    capital programme
     Lynton Agency                  Accumulated surpluses and deficits from the
                                    agency arrangement with Lynton Town Council
     PC Planned Maintenance         Public conveniences planned maintenance
     Vehicles Renewals              Revenue contributions are made over the life of
                                    vehicles to provide for future replacement
                                    within the capital programme


 Page 39 of 83
                      Statement Of Accounts 2007-08

   Capital Funding                    Funding of the approved capital programme
   Executive Contingency              Funding for in year initiatives and opportunities
   Greensweep Replacement             Revenue contributions are made over the life of
                                      the bins to provide for future replacement
                                      within the capital programme
   Planning Improvement               Planning Delivery Grant income for spend not in
                                      year of receipt
   Executive Funding Reserve          For future funding of the Executive Contingency
                                      reserve

Note 19 – Financial Instruments

Financial Instruments represent any contract that gives rise to a financial asset in
one entity and a financial liability or equity instrument of another entity.

Financial liabilities are initially measured at fair value and carried at their
amortised cost. Annual charges to the Income and Expenditure Account for
interest payable are based on the carrying amount of the liability, multiplied by
the effective rate of interest for the instrument. The Council currently has no
external borrowings other than short terms borrowing to manage cash flows,
which attracted an interest cost of £7,168 in 2007-08. There are no other
material Financial Liabilities that require separate disclosure.

Financial Assets are initially measured at fair value and carried at their amortised
cost. Annual credits to the Income and Expenditure Account for interest
receivable is based on the carrying amount of the asset multiplied by the effective
rate of interest for the instrument. For the loans that the council has made this
means that the amount presented in the Balance Sheet is the outstanding
principal receivable and interest credited to the Income and Expenditure Account
is the amount receivable for the year in the loan agreement.

Financial Assets that give rise to a disclosure under this accounting policy cover
items such as loans and receivables and include areas such as investments and
the provision of loans to voluntary organisations at less than market rates. The
Council currently has no significant transactions of this nature, however, the
amounts disclosed in the table below. The Council also does not hold any assets
for sale and therefore the Accounting Statements do not contain an Asset’s for
Sale Reserve.

Long and Short term investments are analysed below:

    2006/07                                               Return Achieved          2007/08
       £000                                                       In Year             £000
                                                               %

       2,000    Long Term Investments                         5.59%                    1,058

      10,057    Short Term Investments                        5.59%                    8,557
          12    Other                                                                     12
      10,069    Total Short Term Investments                                           8,569

The long-term investments the Council holds are for terms shorter than three
years and are at fixed rates. There are risks associated with holding Financial
Instruments particularly in terms of substantial amounts held in external
investments. The most significant area of risk arising is financial viability of the



Page 40 of 83
                      Statement Of Accounts 2007-08

institution that the money is invested with. In order to mitigate this risk North
Devon District Council has a Treasury Management Policy, which adopts CIPFA
best practice. The Council also adopts a policy of spreading the investments
across a portfolio of institutions that appear on the list as approved deposit takers
by the Government. The risks associated with investments are reported to the
Council’s Audit Committee as part of the Council’s risk management strategy.

Other loans outstanding as at 31 March 2008 consist of Housing Advances
(£50,640), Berrynarbour Community Shop and Post Office (£20,000) and North
Devon Theatre’s Trust (£13,409).

Note 20 – Stocks

 2006/07                                                                    2007/08
    £000                                                                       £000
     110    Works Unit                                                          118
      18    Other                                                                21
     128    Total                                                               139

Note 21 – Debtors

An analysis of debtors (net of provision for bad and doubtful debts) is shown
In the table below. For 2007-08 debtors are required to be categorised as a
classification of Financial Instrument. The debtors shown in the table below are
all classified as loans and receivables.

 2006/07                                                                    2007/08
    £000                                                                       £000

    1,057   Collection fund                                                    1,101
      843   Government departments                                               817
      651   Other Local Authorities                                            1,003
    2,649   Sundry debtors                                                     2,299
    5,200                                                                      5,220

Provisions for bad debts (included in the table above) were as follows:
  2006/07                                                                   2007/08
     £000                                                                      £000

    1,213   Collection fund                                                    1,237
      674   Sundry debtors                                                       887
    1,887                                                                      2,124

Note 22 – Creditors

An analysis of creditors is shown below:
 2006/07                                                                    2007/08
    £000                                                                       £000

    1,342   Collection Fund                                                    1,165
      234   Government Departments                                             1,233
    2,518   Sundry Creditors                                                   2,203
      497   Deferred Income                                                      343
      277   Income in Advance                                                    441
    4,868                                                                      5,385



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                       Statement Of Accounts 2007-08


In 2007-08 creditors are also expressed under the terminology Financial
Instruments as a financial liability. Creditors have been disclosed and measured
at amortised cost.

Note 23 – Long Term Borrowing

All long-term borrowing was repaid in 2000/01 and no long-term loans have been
taken out since.

Note 24 – Provisions

Provision has been made for liabilities which are certain or likely to be incurred,
but uncertain as to the amounts or dates when they will arise. Expenditure
relating to a provision is charged against the provision and not against the
Revenue Account.

                                                    Balance 1st     Movement     Balance
                                                    April 2007      in Year      31st March
                                                    £’000           £’000        2008
                                                                                 £’000
DSO Waste Management Licence Clause                           1              0             1
Museum Development Fund                                       6              0             6
All Weather Pitch Fund                                       46              5            51
Athletics Track Fund                                         27              4            31
Area and Strategic Grants 05/06                               6            (4)             2
Area and Strategic Grants 06/07                              10           (10)             0
Grant Provision 2003/04                                      22           (22)             0
Grant Provision 2004/05                                      15           (12)             3
39 Bear St (Sustainable Transport)                            3              0             3
Area Grants 2002/03                                          12           (12)             0
Skateboard Park, South Molton                                 2              0             2
Grant Provision 2007/08                                       0              3             3
Concessionary Fares                                           0             47            47
Insurance Provision                                           0             15            15
Total                                                       150             14           164

Note 25 – Capital Grants

Capital Grants Deferred

The Council receives Capital Grants from a number of sources to assist in
financing new capital schemes (For example Lottery Grant received in respect of
the Tarka Tennis Centre). For those Capital Assets that are depreciated, the Grant
is held on the Balance Sheet and released over the life of the Asset.

                                                                  £000

Balance of Deferred Grants as at 1st April 2007              10,056
Grants Received 2007/08                                         734
Transferred to Capital grants Unapplied                       (396)
Released to Revenue Account 2007/08                           (445)
Balance of Deferred Grants as at 31st March 2008              9,949




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                         Statement Of Accounts 2007-08


Capital Grants Unapplied

Some of the Capital Grants the Council receives are not always used during the
year in which the money was received. When the grant received is not spent in
the year it is received and does not have to be repaid to the grant contributor it is
held within Capital grant unapplied until such time as the capital money is spent
and the grant is used to finance that expenditure.

Type of Grant      Balance at 1st   Received in   Used in      Transfers in       Balance as 31st
                   April 2007       Year          Year         Year               March 2008
                   £’000            £’000         £’000        £’000              £’000
Section 106
contributions                 221          528          (68)            526                 1,207
Disabled
Facilities Grant               37          260         (286)                  0                11
Private Sector
Renewal                       669          686         (679)                  0               676
IEG                           186            0         (186)                  0                 0
Planning
Delivery Grant                132           51          (41)                  0               142
Other                           0           50           (2)                  0                48
Waste
Performance
Grant                          37          288         (285)              0                    40
Total                       1,282        1,863       (1,547)            526                 2,124

The £526,000 transferred into Government Grants Unapplied consists of
£396,000 from Government Grants Deferred and £130,000 incorrectly treated as
a creditor in 2006-07, which has been transferred.

Note 26 – Fixed Asset Restatement Account

                                                            £000

Balance as at 1st April 2007                             15,574
Revaluation Adjustments                                       0
Written Out In Year                                    (15,574)
Balance as at 31st March 2008                                 0

The former system of capital accounting required the establishment of the Fixed
Asset Restatement Account. The Account was written down by the net book
value of assets as they are disposed of and adjusted by gains / losses arising on
future revaluations. The Account was formerly closed as at 31 March 2007 and
the balance appropriated to the Capital Adjustment Account.

The gains or losses (subject to there being sufficient previous year gains) will be
debited or credited the to the Revaluation Reserve. The Revaluation Reserve has
been established with effect from 1 April 2007 with a zero opening balance. Over
time it will be debited or credited with losses or gains arising from the revaluation
of fixed assets based on an individual asset by asset base. In order for a
revaluation loss to be recorded in the Revaluation Reserve there has to be a gain
recorded in a previous accounting period directly attributable to that particular
asset. If a revaluation loss or impairment occurs and there are insufficient gains
to offset the downward valuation a charge is made to the Income and
Expenditure Account. That charge is then reversed out via the Statement of




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                      Statement Of Accounts 2007-08

Movement on the General Fund Balance with an adjustment in the Capital
Adjustment Account.

Revaluation Reserve

                                                      £000

Balance as at 1st April 2007                             0
Revaluation Adjustments                                509
Written Out In Year                                      0
Balance as at 31st March 2008                          509

Note 27 – Capital Adjustment Account

The Capital Financing Account contains the amounts required by statute to be set
aside from capital receipts for the repayment of external loans and the amount of
capital expenditure financed from capital receipts and revenue. It also contains
the difference between amounts provided for depreciation and that required to be
charged to revenue to repay the principal element of external loans (Minimum
Revenue Provision). It further contains the costs attributable to the impairment
losses recognised against fixed asset where there are insufficient previous
accounting period gains in the Revaluation Reserves with which to offset the
losses against.

For 2007-08 the closing balance on the Fixed Asset Restatement Account (see
Note 26), required to be appropriated to the Capital Adjustment Account upon
closure of the Revaluation Reserve.

                                                                         £000
Balance as at 1st April 2007                                           38,266
Appropriation from Revaluation Reserve                                 15,574
Capital Financing – Capital Receipts                                    4,344
Capital Financing – Reserves                                            1,107
Surplus of Depreciation over Minimum Revenue Provision                (1,203)
Deferred Charges Written Off                                          (2,134)
Impairment                                                              (196)
Disposal of Fixed Assets                                                (339)
Transfer from Capital Grants Deferred                                     446
Balance as at 31st March 2008                                          55,865

Note 28 – Usable Capital Receipts Reserve

These are capital receipts, mainly from the sale of assets, which have not been
used to finance capital expenditure or set aside for debt redemption.

                                                                        £000

Balance of Usable Receipts as at 1st April 2007                         4,764
Receipts from Asset Sales/Mortgages                                       880
Receipts Applied towards Statutory Pooling Payment                       (16)
Receipts Applied towards Capital Financing                            (4,344)
Balance as at 31st March 2008                                           1,284




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                     Statement Of Accounts 2007-08

Note 29 – Deferred Capital Receipts

Deferred capital receipts represent the Principal outstanding on Mortgages
granted to allow the purchase of Council Housing. The Loans outstanding
are shown as part of long-term debtors in the Balance Sheet.

Note 30 – Analysis of Net Assets Employed

The analysis of Net Assets Employed is set out below:

 2006/07                                                                 2007/08
    £000                                                                    £000

   43,795   General Fund                                                   47,175
       25   Collection Fund                                                     4
   43,820                                                                  47,179

Note 31 – Contingent Asset

The Council has lodged a Voluntary Disclosure with HM Customs and Excise
amounting to £2.2m for repayment of Value Added Tax (VAT) on Car Parking
income. This disclosure was also included in previous Statement of Accounts.
The decision on whether repayment will be made to the Council is dependent
upon the outcome of a court case that has been referred to the European Court of
Justice following an opinion of the Advocate General, which was in broadly in line
HMRC and the European Commission. As receipt of this repayment is uncertain it
has not been included within these accounts.

Note 32 – Events After The Balance Sheet Date

No material events have occurred up to the date of completing these Accounts.




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                           Statement Of Accounts 2007-08


   Note 33 – Summary Reserve Movements

Reserve          Opening           Gains or     Movement     Closing      Purpose of Reserve      Further
                 Balance 1st       Losses          in Year   Balance                              Details of
                 April 2007        credited                  31st March                           Movement
                                   or debited                2008
                                   to the
                                   Reserve
                        £’000           £’000       £’000         £’000
Fixed Asset            15,574                    (15,574)             0   This reserve ceased     Note 26
Restatement                                                               to exist as at 31
Account                                                                   March 2007. The
                                                                          balance was
                                                                          appropriated to the
                                                                          Capital Adjustment
                                                                          Account
Revaluation                    0         509            0           509   Store of gains          Note 26
Reserve                                                                   attributable to the
                                                                          revaluation of fixed
                                                                          assets
Capital                38,266          (196)       17,795        55,865   Store of capital        Note 27
Financing                                                                 resources set aside
Account                                                                   to meet past
                                                                          expenditure
Usable Capital          4,764                     (3,480)         1,284   Proceeds of fixed       Note 28
Receipts                                                                  asset sales available
Reserve                                                                   to meet future
                                                                          capital investment
NDDC Share                 25                        (21)             4   Surplus on Collection
of Collection                                                             Fund account
Fund Balance                                                              attributable to NDDC
Deferred                   45                        (22)            23   The amount still
Capital                                                                   outstanding on
Receipts                                                                  mortgage debtors
Pensions             (18,776)          3,910        (677)      (15,543)   Balancing account to    Note 16
Reserve                                                                   allow inclusion of
                                                                          Pensions Liability in
                                                                          the Balance Sheet
General Fund            1,731                       (232)         1,499   Resources to meet
Balance                                                                   future running costs
Earmarked               4,256                         362         4,618   Resources set aside     Note 18
Reserves                                                                  to meet specific
                                                                          future costs
Total                  45,885          4,223      (1,849)        48,259




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                        Statement Of Accounts 2007-08

Note 34 – Reconciliation Income and Expenditure Account To Revenue Activities
Cash Flow

2006/2007                                                               2007/2008
  £000                                                                £000     £000

      1,171    Deficit/(Surplus) Income and Expenditure Account   2,149
    (1,153)    Net Amount Debited/Credited to General Fund      (1,916)
         (9)   Deficit/(Surplus) Collection Fund                     21
           9                                                                          254
               NON CASH TRANSACTIONS
       (11)    Contributions to/(from) Provisions                         14
        133    Contributions to/(from) Reserves                          364
    (2,116)    Other Non Cash Items                                  (2,509)
    (1,994)                                                                        (2,131)
               ITEMS ON AN ACCRUALS BASIS
         60    Movement Stocks                                           11
       (90)    Movement Debtors                                         310
      1,508    Movement Creditors                                     (670)
      1,478                                                                          (349)
               INTEREST
         (1)   Interest Paid                                                (7)
        912    Interest Receivable                                         980

        911                                                                           973

        404    NET CASH FLOW FROM REVENUE ACTIVITIES                               (1,253)

Note 35 – Reconciliation Of Movement In Net Debt to Movement In Cash

                                                     31.03.07   31.03.08     Movement
                                                       £000       £000         £000

Movement In Net Debt
Borrowing Repayable In 12 Months                            0         0                0
Long Term Borrowing                                         0         0                0
                                                            0         0                0

Net Cash Flow From Revenue Activities                                             (1,253)
Servicing Of Finance                                                              (1,079)
Capital Activities                                                                  3,734
Decrease In Short Term Investments                                                (1,743)
Representing: Increase in Cash                                                      (341)

Note 36 - Analysis Of Movement In Liquid Resources

                                                     31.03.07   31.03.08     Movement
                                                       £000       £000         £000

Short Term Investments                                 10,068     8,325           (1,743)

Net Decrease In Short Term Deposits Per                                           (1,743)
Cash Flow Statement
Liquid resources consist of short term investments
for the purposes of the Cash Flow Statement



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                      Statement Of Accounts 2007-08

Note 37 – Analysis Of Government Grants

                                             2007/08
                                              £000

Benefit Subsidy                                  26,959
Housing Benefit Administration                      885
NNDR Costs Of Collection                            189
Other                                               389
Total                                            28,422

Note 38 – Distribution of Previous Year’s Surplus

                                                    £000
Devon County Council                                  43
North Devon District Council                           8
Devon and Cornwall Police Authority                    5
Devon and Somerset Fire & Rescue Authority             3
                                                      59

Note 39 – Council Tax

Council Tax income is calculated by adding together the amounts required by
North Devon District Council, Devon County Council, the Devon and Cornwall
Police Authority, Devon and Somerset Fire & Rescue Authority and local Parish
Councils. This amount, the Precept, is then divided by the North Devon District
tax base of 34,070.25 to give an average Council Tax liability for a Band D
property.

For Council Tax purposes the number of dwellings in each valuation band
converted to a Band D equivalent was as follows:


Band                                       Band D Equivalent Numbers

-A                                                                7.09
A                                                             5,238.88
B                                                             7,088.99
C                                                             7,482.58
D                                                             6,702.05
E                                                             4,577.57
F                                                             2,333.06
G                                                               918.67
H                                                                65.50

Allowance For Non Collection At 1%                             (344.14)

Council Tax Base                                             34,070.25

Individual taxpayer’s liability will depend upon the valuation band of the property
they occupy.




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                      Statement Of Accounts 2007-08


Note 40 – Business Rates

Under the current arrangements for uniform business rates, the Council collects
non-domestic rates for its area that are based on local rateable values multiplied
by a uniform rate. The total non-domestic rateable value as at 31st March 2008
was £62.081m. In 2007/08 the rate was 44.1p in the pound for small businesses
and 44.4p in the pound for others as prescribed by the Government. The total
amount, less certain relief and other deductions, is paid from the Collection Fund
to a central pool (the NNDR Pool) managed by Central Government. The
Authority receives its share of the pool based on a standard amount per head of
the local adult population.

Note 41 – Council Tax Benefit

Specific reductions are made to the Council Tax payable, in accordance with
Government Regulations, for persons on lower incomes (Council Tax Benefits). A
transfer to the Collection Fund from the Income and Expenditure Account, which
in turn receives Government subsidy, meets the cost of individual Council Tax
benefits.




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                   Statement Of Accounts 2007-08


                  GLOSSARY OF FINANCIAL TERMS

CAPITAL CHARGES                Charges made to individual services for the use
                               of assets. The charges consist of depreciation,
                               (where appropriate).

CAPITAL EXPENDITURE            Outlay on Assets, which generally last longer
                               than a year, e.g. land, buildings, construction
                               and vehicles.

CAPITAL EXPENDITURE CHARGED    Financing of capital expenditure directly from
TO REVENUE                     revenue.

COLLECTION FUND                A statutory account recording transactions
                               relating to Council Tax, Business Rates,
                               Government Grants, Local Authority Precepts and
                               residual Community Charge.

INCOME AND EXPENDITURE         This statement reports the net cost for the year
ACCOUNT                        of the functions for which the Authority is
                               responsible bringing together expenditure and
                               income relating to all of the Authority’s functions.

DEFERRED CAPITAL RECEIPTS      Amount advanced to former tenants for Council
                               Houses sold on a mortgage from the Council.

FRS                            Financial Reporting Standard – Accounting
                               Standards produced by the Accounting Standards
                               Board, the professional body overseeing the
                               framework for Accountancy within the UK.

NATIONAL NON-DOMESTIC RATE     A national rate in the £, prescribed by the
(NNDR)                         Government, levied on non-domestic property
                               according to the rateable value of the property.

PRECEPTS                       A request by another Public Authority for a
                               specified sum of money required to pay, for its
                               services.

REVENUE SUPPORT GRANT          Government grant, which is distributed on a
                               formula linked to an assessment of the needs of
                               individual authorities.

REVENUE EXPENDITURE            Day to day expenditure in the provision of
                               services, e.g. salaries and wages, repairs, heat
                               and light, administration etc.

SORP                           Statements of Recommended Practice –
                               recommendations on accounting practices for
                               specific industries or sectors, one being the Local
                               Authority Sector.




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                      Statement Of Accounts 2007-08



            ANNUAL GOVERNANCE STATEMENT 2007/8

Scope of responsibility

North Devon Council is responsible for ensuring that its business is conducted
in accordance with the law and proper standards, and that public money is
safeguarded and properly accounted for, and used economically, efficiently
and effectively. The authority also has a duty under the Local Government Act
1999 to make arrangements to secure continuous improvement in the way in
which its functions are exercised, having regard to a combination of economy,
efficiency and effectiveness.

In discharging this overall responsibility, the authority is responsible for putting
in place proper arrangements for the governance of its affairs, facilitating the
effective exercise of its functions, which includes arrangements for the
management of risk.

North Devon Council has approved and adopted a code of corporate
governance, which is consistent with the principles of the Chartered Institute
Of Public Finance and Accountancy (CIPFA), and the Society of Local
Authority Chief Executives (Solace) Framework Delivering Good Governance
in Local Government. A copy of the code is on our website at
www.northdevon.gov.uk or can be obtained from Don Pratt, the Assistant
Chief Executive (Legal and Democratic). This statement explains how the
authority has complied with the code and also meets the requirements of
regulation 4(2) of the Accounts and Audit regulations 2003 as amended by the
Accounts an Audit (Amendment) (England) regulations 2006 in relation to the
publication of a statement on internal control.

The purpose of the governance framework

The governance framework comprises the systems and processes, and
culture and values, by which the authority is directed and controlled and its
activities through which it accounts to, engages with and leads the
community. It enables the authority to monitor the achievement of its strategic
objectives and to consider whether those objectives have led to the delivery of
appropriate, cost-effective services.

The system of internal control is a significant part of that framework and is
designed to manage risk to a reasonable level. It cannot eliminate all risk of
failure to achieve policies, aims and objectives and can therefore only provide
reasonable and not absolute assurance of effectiveness. The system of
internal control is based on an ongoing process designed to identify and
prioritise the risks to the achievement of the authority‟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.



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                    Statement Of Accounts 2007-08

The governance framework has been in place at North Devon Council for the
year ended 31 March 2008 and up to the date of approval of the annual report
and statement of accounts.

Our governance framework derives from six core principles identified in the
2007 publication entitled “Delivering Good Governance in Local Government,
Framework”. This was produced by the Chartered Institute of Public Finance
and Accountancy, and the Society of Local Authority Chief Executives. The
six core principles are:
       a) Focussing on the purpose of the authority and on outcomes for the
           community and creating and implementing a vision for the local
           area;
       b) Members and Officers working together to achieve a common
           purpose with clearly defined functions and roles;
       c) Promoting values for the authority and demonstrating the values of
           good governance through upholding high standards of conduct and
           behaviour;
       d) Taking informed and transparent decisions which are subject to
           effective scrutiny and managing risk;
       e) Developing the capacity and capability of Members and officers to
           be effective;
       f) Engaging with local people and other stakeholders to ensure robust
           public accountability.




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                     Statement Of Accounts 2007-08



North Devon Council’s governance framework

This section describes the key elements and processes that comprise the Council’s
governance arrangements.

Identifying and communicating the authority’s vision and intended
outcomes for citizens and service users

The Community Strategy “North Devon First” and its 2006 action plan
outlines the vision, aims and priority themes for the area covered by North
Devon and Torridge Councils. It was produced in conjunction with the North
Devon community Alliance, our Local Strategic Partnership, which brings
together all relevant stakeholders, including those that deliver services in the
area. Priorities have been identified through consultation with local people and
a wide range of stakeholders. During 2008 the Strategy will be revised into a
Sustainable Communities Strategy.

The Council‟s aims and objectives are set out in the annually updated
Corporate Business Plan. This contains a description of North Devon
Council‟s corporate priorities, which describes the areas where we are
focussing our activities over a three-year period. The Plan is fully integrated
with our Medium-Term Financial Strategy so resources are allocated to our
priority areas. These priorities reflect the Community Strategy. The Corporate
Business Plan also reports on our progress in the previous year, including the
delivery of our priorities. It also shows our targets for the next three years
together with planned improvements.

The Corporate priorities are communicated to internal stakeholders through
the Service Planning process. Improvements have been made to the Service
Planning process to ensure that Service Plans:

   Clearly demonstrate the contribution made by services to the corporate
     priorities
   Identify the impact of new initiatives
   Promote value for money and equality of service provision
   The Council has established a range of communication methods to ensure
     that employees are clear about the corporate priorities and major new
     initiatives
   Monthly meetings of Heads of Service are used to cascade key issues
     from Senior Management Team for discussion at team meetings.
   The Chief Executive holds quarterly staff briefings for all staff to update
     them on key initiatives, which this year has included the new Council‟s
     priorities, Comprehensive Performance re-assessment, the Branding
     project and Local Government Review.
   The monthly staff newsletter contains a „news from the top‟ spot written by
     the Chief Executive.
   The Intranet is used to communicate issues arising from Senior
     Management Team meetings.


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                     Statement Of Accounts 2007-08



Reviewing the authority’s vision and its implications for the authority’s
governance arrangements

Each winter the preparation of the forthcoming Corporate Business Plan
includes a review of the vision and priorities of the Council as part of a
workshop with Executive members. This is informed by environmental scan
covering political, social, economic and legal issues.

The single consultation exercise with the most impact on the testing and
shaping of the Council‟s priorities is our annual survey of a random sample
of 2,000 residents. This information is used to shape the future development
of our vision including future investment and services provided.

As part of this process any impact on governance arrangements is identified
and responded to.

Measuring the quality of services for users, for ensuring they are
delivered in accordance with the authority’s objectives and for ensuring
that they represent the best use of resources

The Corporate Business Plan provides clarity for all Members and officers
by:
      Setting out our vision of North Devon, our core values, and our
        detailed objectives;
      Reviewing our progress and performance during the last year
        against our the key objectives;
      Renewing improvement targets for future years;
      Helping manage our performance and improvement planning to
        deliver better services in the areas that matter most to our residents.

Stemming from the Corporate Business Plan are Service Plans that were
developed focussing on delivering service improvement and outcomes for the
public. These form the basis of individual performance appraisal of all staff,
which provides clarity about expectations for achievement during the year.

Service planning is underpinned by financial planning, with increased
expenditure in any service area being approved by the Executive through the
annual resource allocation process. As part of this process a rigorous
examination of all budgets is undertaken to identify opportunities for making
efficiency savings or maximising income. Increased expenditure is allocated in
line with the Council's published policy, priorities and statutory obligations.

The Executive receives quarterly Performance and Use of Resources
reports from the Chief Executive and Chief Financial Officer that include
monitoring of progress against our priorities as well as other areas of service
delivery that are of concern. This report covers operational performance,
revenue and capital monitoring, key prudential code indicators, treasury
management performance, and debt management. It integrates reporting of


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                     Statement Of Accounts 2007-08

operational performance with financial performance. The reports are by
exception, written in clear language and provide a succinct overview of
performance so that the lay reader can easily understand them.

The Overview and Scrutiny Committee scrutinises each of these quarterly
reports and the adequacy of the Executive‟s action in ensuring progress is
maintained.

The Council has an effective, documented Performance Management
Framework and utilises a dedicated Information Technology system to record
and report upon performance information. The Council‟s Business Plan
focuses attention on Council priorities and drives the system. This is
cascaded through Service Plans, individual employee appraisals and action
plans.

The annual service and financial planning and performance management
cycle is clearly laid out, with a corporate calendar of all the dates available
on-screen to all staff. The Council‟s Executive monitors and scrutinises
progress against targets and performance in priority areas affecting relevant
service areas, and consider and approve corrective action where necessary,
on a quarterly basis.

In addition to the above the Council maintained robust budgetary monitoring
and control processes during the year to ensure that financial resources
were being used to their best advantage, including regular management
reporting to the S151 Officer, Senior Management Team, the Resources
Portfolio, and the Executive.

In the external audit report on the Council‟s data quality arrangements
received in December 2007 described us as “performing well” in this area.

Defining and documenting the roles and responsibilities of the
executive, non-executive, scrutiny and officer functions, with clear
delegation arrangements and protocols for effective communication

The Council has adopted a Constitution that sets out how the Council
operates, how decisions are made, and the procedures that are followed to
ensure these are efficient, transparent and accountable to local people.

The main decision-making body is the Executive, which is responsible for all
executive matters as defined by law and operates within the budget and policy
framework approved annually by full Council. Meetings are open to the public
except where personal or confidential matters are being discussed. In
addition, senior and other officers of the Council can make decisions under
delegated authority; again the extent of these delegations is set out in the
Constitution.

The Council publishes a Forward Plan that contains details of key decisions
to be made by the Executive. Each Executive Councillor has a specific


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                     Statement Of Accounts 2007-08

portfolio of responsibilities requiring them to work closely with senior officers
and other employees so as to achieve the Council‟s priorities. However the
Council has not adopted individual decision-making powers for the portfolio
holders.

The Council has several committees that carry out regulatory or scrutiny
functions. These are:

     a Planning Committee to determine planning applications and related
      matters;
     a Standards Committee which promotes, monitors and enforces
      probity and high ethical standards amongst the Council‟s Members, and
      this extends to having the same responsibility for all town and parish
      councils within the area;
     an Audit Committee to provide assurance about the adequacy of
      internal controls, financial accounting and reporting arrangements, and
      that effective risk management is in place. Its work is intended to
      enhance public trust in the corporate and financial governance of the
      council;
     a Licensing Committee, which monitors and reviews the effectiveness
      of the Council‟s licensing policy and procedures;
     an Overview And Scrutiny Committee, which reviews and scrutinise
      decisions made or actions taken in connection with the discharge of any
      of the Council‟s functions.

The Chief Executive leads a five-strong Senior Management Team (SMT);
two Executive Directors with wide ranging strategic responsibilities and two
Assistant Chief Executives who ensure council business is effectively planned
and delivered. Together with our nine Heads of Service, they form the
Strategic Management Group.

The Senior Management Team meets twice each week to develop policy
issues commensurate with the Council‟s aims, objectives and priorities.
Senior Management Team also considers other internal control issues,
including risk management, performance management, compliances,
efficiency and value for money, and financial management. A designated
Senior Management Team member is the Lead Officer for each Executive
portfolio and meets regularly to review progress in achieving the Council‟s
priorities. It has a corporate responsibility for the messages that the council
puts out, both internally and externally.

The Council‟s services are delivered through nine Services each managed by
a Head of Service or an Assistant Chief Executive.

The officer management structure is shown in the following diagram:




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                                             North Devon Council
                                            Management Structure
Senior Management Team                                  Chief Executive




           Executive Director                                                                                   Executive Director
        (Operations and Finance)                                                                                (Regeneration and
            [NB s151 officer]                                                                                     Development)
                                       Assistant Chief Executive
                                                                          Assistant Chief Executive
                                        (Policy and Performance
                                                                           (Legal and Democratic)
                                              Improvement)
                                                                           [NB Monitoring Officer]
                                     [NB Lead for risk management]




 Head of Recycling       Head of           Head of                              Head of               Head of Property                          Head of
  and Commercial         Financial         Human                            Environmental                                 Head of Planning   Community and
                                                                                                       and Technical
     Services            Services         Resources                       Health and Housing                              and Development       Leisure
                                                                                                         Services


                     There are clear lines of internal communication to ensure direction from and
                     reporting to the Senior Management Team to assist with the monitoring of
                     Council business activities and decision making thereon.

                     Reviewing and updating standing orders, standing financial
                     instructions, a scheme of delegation and supporting procedure
                     notes/manuals, which clearly define how decisions are taken and the
                     processes and controls required to manage risks

                     The Constitution is available to the public on our website.

                     Three key documents, which are included in the Constitution are:
                           the Scheme of Delegations,
                           Standing Orders, and
                           Financial Regulations

                           which are available to all officers, Councillors, and the public via the
                           Council's intranet and website.

                     Other documentation includes corporate policies or guidance on a range of
                     topics such as:
                           Complaints Procedure,              Information and
                           Anti-fraud Policy,                     Communication Technology
                                                                   Security,
                           Email, Internet, and
                              Information Security Policies,   Whistleblowing and Fraud,
                           Data Protection,                   Data Quality,
                           Freedom of Information,            Performance Management
                                                                   Framework,


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         Project Management                       procedures.

Developing, communicating and embedding codes of conduct, defining the
standards of behaviour for members and staff

All policies are subject to internal review to ensure these are adequately
maintained. The Council keeps all staff aware of changes in policy and new
legislation as necessary, by a variety of documentation and other means, and
where appropriate arranging training for all or key members of staff.

The Council‟s Standards Committee oversees standards of conduct for
members. Independent members form part of the membership of the committee.
The Standards Committee and Monitoring Officer provide advice, training and
help to councillors on the ethical framework. Councillors and officers are made
aware of their responsibilities under the framework and the behaviours expected of
them.

The management of and adherence of the Council's wider statutory obligations
rely heavily on devolved working arrangements, with Legal Services advising all
services on legislation as required.

In the course of the year the Assistant Chief Executive (Legal and Democratic), as
the Council's Monitoring Officer, has not had to report on any proposal, decision
or omission by the Council, any committee or officer, that has contravened or is
likely to contravene any enactment or rule of law, or on any formal Report by the
Local Government Ombudsman finding maladministration causing injustice.

The Council has adopted a number of key documents and protocols that govern
both Member and officer activities. These include:

         A Protocol governing relationships between Members and Officers,
         Members Code of Conduct
         Officers Code of Conduct

The three above are part of the Constitution. In addition there are:

         A separate Planning Code of Conduct,
         Members‟ declarations of interest
         Gifts and hospitality

Undertaking the core functions of an audit committee, as identified in Cipfa’s
Audit Committees – Practical Guidance for Local Authorities

In 2006 the Council formed an independent Audit Committee, with its own
comprehensive Terms of Reference that adhere to Certified Institute of Public
Finance and Accountancy (CIPFA) guidance. The Council has delegated to the

Audit Committee responsibility for ensuring the adequacy of governance
arrangements.


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The first meeting of the newly constituted Audit Committee was in January 2007
and it meets at least four times each year.
The Committee:

 considers the annual Audit and Inspection Plan
 agrees the annual strategy for internal audit based on needs assessment.
 receives all external and internal audit reports and monitors the implementation
   of the resulting action plans;
 regularly reviews the Corporate Risk Register;
 receives reports by Heads of Service on arrangements for managing risk within
   services;
 ensures that the Annual Governance Statement properly reflects the risk
 environment and any actions required to improve it.

Ensuring compliance with relevant laws and regulations, internal policies
and procedures, and that expenditure is lawful

The Council has a duty to ensure that it acts in accordance with the law and
various regulations in the performance of its functions. It has developed policies
and procedures for its officers to ensure that, as far as is possible, all officers
understand their responsibilities both to the Council and to the public.

All members of Senior Management Team and Heads of Service have
responsibility for maintaining a system of sound internal controls and management
processes within their area of responsibility that support the achievement of
Corporate and Service objectives, and for reviewing their effectiveness. Each has
completed an Assurance Statement for their area confirming that a sound system
of internal control has been in place throughout the financial year.

All reports to the Executive, Council and other decision takers are reviewed by the
Senior Management Team. This includes the active involvement of the Council‟s
statutory officers in reviewing and advising on the financial, legal, constitutional
and staffing implications associated with decisions made by the Council.

The Council was accredited in July 2001 under the Investors in People Standard,
which is a quality framework to ensure that the Council‟s employees have the right
knowledge, skills and motivation to work effectively. It has been repeatedly re-
accredited since then.

Internal audit is an independent appraisal function that acts as a control that
measures, evaluates and reports upon the effectiveness of internal controls,
financial and others, as a contribution to the efficient use of resources within the
Authority. The Annual Audit Plan is used to map out the cyclical coverage of
fundamental financial systems and other audits. These plans are based on the
identification of the Council's systems and activities to be audited, each assessed
for risk. Work relating to prevention and detection of fraud and corruption is
integrated into this audit planning process.




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Internal Audit publishes an annual report setting out the opinion on the overall
adequacy and effectiveness of the Council‟s internal control environment,
providing details of any weaknesses that qualify this opinion and bringing to the
attention of the Council any issues particularly relevant to the preparation of this
Statement.

Based upon this work, Internal Audit is of the view that “for the 12 months ended
31 March 2008 North Devon District Council has adequate and effective risk
management, control and governance processes to manage the achievement of
the organisation’s objectives” (Internal Audit annual report for year ending 31
March 2008). They have not identified any items that should be referred to in this
AGS.

The adequacy of Internal Audit is tested by our External Auditors.

The External Auditors reviewed the Council‟s governance arrangements through
the Use of Resources assessment. This identified that our arrangements in 9 of
the 11 areas are adequate with the remaining two „performing well‟.

The Council has delegated to the Audit Committee responsibility for ensuring the
adequacy of governance arrangements.

Both the Senior Management Team and the Audit Committee review and monitor
all external and internal audit reports.

A member of the Senior Management Team is designated as the Council‟s lead
officer on risk management and chairs the Corporate Risk Group. The lead
Councillor for risk management is the Leader of the Council.

The Council continues to develop and refine systems for identifying and evaluating
all significant risks, via the Corporate Risk Group. The Council approved a Risk
Management Policy as part of our Performance Management framework, with a
requirement to maintain this as a dynamic document and submit it to the Audit
Committee regularly, most recently in July 2007 and October 2007. The lead
officer for risk reports to the Audit Committee more frequently if there are
significant matters requiring Members‟ attention.

The risk management process involves identifying, analysing, determining
appropriate controls, managing and monitoring risks. The identification of risks is
derived from a „top down‟ (corporate) and a „bottom up‟ (service) process of risk
assessment and analysis resulting in coverage of the whole Council. The process
prioritises the risks resulting in a focus upon the key risks and priorities. The risks
are managed through the development of appropriate action plans allocated to
responsible officers.

Whistle-blowing and for receiving and investigating complaints from the
public




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The Councils whistleblowing policy, the Confidential Reporting Code, is available
to all officers and Councillors on Insite. The Code is currently under review and a
revised Code will be adopted in the next municipal year.

The complaints system is managed corporately to facilitate the identification and
reporting of trends. A review of the system is underway and its findings will be
implemented in 2008/9.

A positive annual letter was received from the Ombudsman on the Council‟s
handling of complaints. Any Ombudsman complaints where either the Council or
the Ombudsman feels the Council is at fault are reported to the Standards
Committee.

Identifying the development needs of members and senior officers in
relation to their strategic roles, supported by appropriate training

With Improvement and Development Agency for Local Government support the
Senior Management Team has developed the Council‟s strategic management
arrangements with the objective of focussing capacity on supporting our ambitions.
That capacity is focussed outwards on achieving outcomes.

Following the May 2007 election, which resulted in a number of first-time
Councillors, a comprehensive Member training programme was delivered. This
continues to be delivered and reinforced.

The Member Training has included:

   Training for the Audit Committee in their role
   Training for all members in Local Government Finance

Underpinning the corporate cycle is the provision of appropriate training and
development to Members and officers focussed on the reducing the risk of the
Council not achieving its objectives.

Establishing clear channels of communication with all sections of the
community and other stakeholders, ensuring accountability and
encouraging open consultation

The Council has a Constitution that details how the Council operates, how
decisions are made and the procedures to be followed. This ensures that these
are efficient, transparent and accountable to local people.

The Executive is responsible for most decisions. Major decisions are published in
advance in the Forward Plan, and will invariably be discussed in a meeting open
to the public. All decisions must be in line with the Council's overall policies and
budget. Any decisions the Executive wishes to take outside the budget or policy
framework must be referred to Council as a whole to decide.




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We have a well-established Community Consultation Framework that guides
and co-ordinates the large number of other consultation exercises we conducted
during the year. The management of the consultations is through our on-line tool
“Consultation Finder”, and the Council publishes a forward plan of consultations.

Each year the Council reviews the progress it has made and the views of residents
that emerge from consultation. This enables the Corporate Business Plan to be
updated as new issues emerge, activities are completed, and objectives
achieved. This cascades into Service Plans and individual performance
appraisals.

The Council communicates directly with local people through North Devon Direct,
a quarterly magazine delivered to every household. It lets people know about our
ambitions, seeks their views and provides information on our performance. It‟s
distributed on audio cassette to people who need it. Its style, format and content
were developed with community consultation.

Members are fully engaged in our plans and helped to inform our Internal
Communications Strategy. Portfolio teams of members and officers deliver
priorities and improvement plans, such as Waste, Housing and Access to
Services. The Overview & Scrutiny Committee provides regular informal and
formal challenge to the Executive. Members have a monthly newsletter to keep
them up to date with performance as well as access to a home computer and the
chance to gain the European Computer Driving Licence qualification.

This year two new methods of communication and consultation have been
introduced to further improve engagement with community councillors;

   Monthly member briefings on specific topics which can be used for briefing and
    informal debate. Topics this year have been Comprehensive Performance
    Assessment re-assessment, the Branding project and Local Government
    Review.
   A „Question time‟ at Full Council, giving members the opportunity to ask
    questions of the Leader and Portfolio holders.

Incorporating good governance arrangements in respect of partnerships and
other group working as identified by the Audit Commission’s report on the
governance of partnerships, and reflecting these in the authority’s overall
governance arrangements.

In 2007 The Council carry out a fundamental review that led to the merger of North
Devon and Torridge Local Strategic Partnerships (LSPs).

Before the merger The Council chaired and supported the North Devon Local
Strategic Partnership (known as the North Devon Community Alliance) since it
was formed in 2001, it has operated as a model of „community empowerment‟,
with three key roles:




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   Promoting development of „bottom up‟ community plans. An example was the
     successful bid to the neighbourhood renewal programme which resulted in
     „Transform‟ a pathfinder neighbourhood management programme covering
     some of the most deprived parts of the district – the only rural pathfinder in the
     country
   Influencing plans and priorities of statutory and local government partner
     organisations to reflect the area‟s needs and its diverse communities
   Campaigning on behalf of people in North Devon.




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Review of effectiveness
Background
The authority has conducted its usual annual review of the effectiveness of its
governance framework including the system of internal control. The review of
effectiveness is informed by the work of the officers within the authority who have
responsibility for the development and maintenance of governance environment,
the annual report of internal audit, and also by comments made by the external
auditors and other review agencies and inspectorates.

The review is informed through assurance work completed during the year and up
until the point in time at which this statement on internal control is approved.

The main processes that have been relied upon by North Devon Council in
reviewing and maintaining the effectiveness of the system of internal control are
highlighted below.

The Council

The Council has overall responsibility for governance and exercises much of this
through delegation, including:

    Formal delegation of risk management and audit issues to the Audit
     Committee.
   Formal delegation to operate an effective internal audit service to the Chief
     Finance Officer.
   Appointment of a Standards Committee to support the Member Code of
     Conduct
  
Council receives regular reports from the Chairman of the Overview and Scrutiny
Committee and the Chairman of the Audit Committee on the achievement of the
Committees' work programmes and on any issues the Chairmen consider should
be brought to the attention of Council.

At each Council meeting a "question time" has been introduce whereby any
Member of the Council may ask the Leader or any Member of the Executive a
question without notice on any matter falling within the sphere of responsibility of
that Executive Member.

The Executive

The Executive has responsibility for preparing the Council‟s Corporate Business
Plan, Medium Term Financial Strategy and budgets for approval by Full Council,
forming part of the policy and budgetary framework. It has responsibility for
determining service level targets and for monitoring performance against targets. It
is also responsible for securing best value and continual improvement.




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It exercises its role by:

  annual preparation of the corporate business plan, revenue budget and capital
    programme for approval by Council
 monitoring of financial and non financial performance against targets through
    the quarterly Performance and Use of Resources report
 taking decisions in year which are in line with the policy and budgetary
  framework or recommending changes to the policy and budgetary framework to
  Full Council.
 taking decisions on changes to targets and agreeing service improvement
    plans.

In this municipal year Executive has approved a change to the target for affordable
homes and a service improvement plan for the Housing Advice service. It has also
received information on the comparative costs of services based on the Audit
Commission profile data. This identified Planning and Environmental and Public
Health as being of comparative high cost and therefore targeted for value for
money reviews which will report back to Executive in due course.

Overview and Scrutiny Committee

The Overview and Scrutiny Committee exercises it role in holding the Executive to
account by:

     meeting members of the Executive individually to scrutinise their portfolio
      targets and objectives and their performance in achieving them,
     scrutiny of the Corporate Business Plan,
     scrutiny of the budget and capital programme proposed by the Executive and
      prior to their presentation to Council,
     half yearly scrutiny of the Performance and Use of Resources report.

In this municipal year the Committee has conducted one "call-in" of an Executive
decision.

Standards Committee

The Standards Committee has statutory duties relating to promoting and
maintaining high standards of ethics within the Council and Parish Councils.
This year the Committee has overseen the introduction of a revised Code of
Conduct for Members, and in doing so has proposed to Council, and had adopted,
additions to the model Code to ensure that it meets the Council's working
practices.

In addition the Committee has considered and put forward for adoption updated
versions of the Member/Officer Protocol and the Employees Code of Conduct.




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The Audit Committee

In this municipal year the Audit Committee has:

Reviewed the Corporate Risk Register twice, at its meetings in July and October.
Invited Chief Officers and Heads of Service to attend the Committee to discuss
key corporate and service risks, having regard to high-risk areas from the
Corporate Risk Register.

   Executive Director (Operations and Finance) addressed key risks in the Waste
    and Recycling service
   Assistant Chief Executive (Policy and Performance Improvement) addressed
    key risks in the Information and Communication Technology service
   Head of Human Resources addressed key risks in the Human Resources
    service
   Head of Financial Services addressed key risks in Financial Services

Received a quarterly monitoring report on progress with completion of internal and
external audit recommendations.

Received a number of internal and external reports on issues ranging from
housing benefits, risk management and civil contingencies.

Internal Audit

Internal Audit is responsible for objectively reviewing the Council‟s internal
systems of control with a view to reporting on and making recommendations to
management with regard their effectiveness for managing business risk.

The service is provided through an external supplier enabling access to a wide
variety of skills and specialist practitioners.

Internal Audit reviews are completed in accordance with the approved annual
internal audit plan. This is a programme of reviews designed to assess the
effectiveness of the internal controls on which the Council relies for managing risk.

Their effectiveness in carrying out this function is assessed by external audit.

External Audit and the Audit Commission

The External Auditors for 2006/7 were Price Waterhouse Coopers, therefore the
majority of the external audit assurance that informs this Statement is based on
their work that was reported during 2007/8. This audit role was taken over by the
Audit Commission for 2007/8.

In the 2006/07 Annual Audit and Inspection Letter (received in February 2008).
The main messages for the Council included in this report are:




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            our assessment of the Council's corporate management arrangements,
            carried out in 2007 as part of the Comprehensive Performance
            Assessment (CPA) process, judged the Council's overall performance as
            Fair. This is an improvement from its previous rating of Weak

             an unqualified audit opinion was issued by your auditor on the 2006/07
            financial statements

            the arrangements for achieving value for money were satisfactory, as at
            31 March 2007

            the use of resources assessment, carried out by your auditor, rated the
            Council as meeting level two which is the same score as last year. Within
            this overall score, the rating for financial reporting reduced from three to
            two but for financial standing, it increased from two to three

            the quality of many of the Council's services has improved and the
            Council is making steady progress in meeting its corporate priorities.
            However, some improvements have been inconsistent and not always
            sustained.

            whilst the arrangements for securing data quality are assessed as
            performing well overall, your auditor has made a number of
            recommendations for further improvement

The Council can confirm that it has put in place arrangements to deal with
recommendations arising from the 2006/07 external audit. The detail is included in
the table on “Significant governance issues” that starts on page 72.

The Audit Commission carried out a Comprehensive Performance Assessment re-
inspection in 2007. The Council was assessed to be „fair‟, an improvement from
the previous „weak‟ position.

     Strengths included:

    an ambitious plan for the future redevelopment of Barnstaple;

    a good understanding of local issues, informed by strong consultation;

    the clear priorities for improving services to the public;

    the committed and well managed staff; and

    the quality of many services has improved and the council makes a positive
    contribution towards wider community outcomes.




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     Areas for improvement included:

    a need for greater clarity on long-term outcomes for those living, working and
    visiting North Devon;

    developing the capacity to manage ambitious redevelopment projects;

    a need to ensure performance management systems address under-
    performance consistently;

     a need for greater consistency in measuring the contribution of partnerships to
    local priorities; and

    a need to sustain and improve the quality of council services so that they meet
    the needs of all sections of community and provide value for money.

The detail is included in the table on “Significant governance issues” that starts on
page 72.

Other external agencies

The most recent annual report by the Ombudsman is for 2006/7. It shows a
decrease in complaints to 29, from 32 in 2005/6. No cases of maladministration
were found in either year.

At the end of the year the Environment Health and Housing Service started the
process of gaining a service-wide Charter Mark, which involves an assessment by
a body accredited by the United Kingdom Accreditation Service, with the Cabinet
Office retaining overall control of the scheme. This is expected to come to fruition
during 2008/9.

Apart from this, the most recent review by an external agency, other than the Audit
Commission, was the Food Standards Agency in 2006/7, which falls outside the
scope of this statement. However, their report was favourable and the action plan
stemming from it has been implemented.

Section 151 Officer and Monitoring Officer

The Executive Director (Operations and Finance) is the Council‟s Section 151
Officer. This officer has a statutory responsibility to ensure the Council‟s financial
affairs are properly undertaken and suitably safeguarded from loss.

The Assistant Chief Executive (Legal and Democratic) holds the role of Monitoring
Officer. This officer has a statutory responsibility to ensure the legality of
transactions, activities and arrangements the Council enters into.

All reports presented to Committee for decision making require financial and legal
implications to be explicitly detailed. The Council‟s Section 151 and Monitoring
Officer have considered these reports, along with their implications.


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Each officer also provided on-going advice in connection with both the financial
and legal standing of Council business, including monthly reviews of the Council‟s
expenditure against the budget.

At the end of the year both officers signed a statement assuring that there were no
significant governance issues that are not covered in this Annual Governance
Statement.

Corporate Risk Management Group

This group is chaired by the Council‟s lead officer on risk management, and was
created in 2007. Its function is to support the Audit Committee and the Senior
Management Team. Its terms of reference are:

     Review the Corporate Risk Register quarterly to ensure it is up to date.
     Produce quarterly report to Audit Committee
     Provide half-yearly report to the Senior Management Team on the adequacy
      of actions taken and any major unmitigated risks.
     Over an annual cycle, to review and challenge service level registers and the
      achievement of actions arising.
     Undertake or facilitate with the Senior Management Team annual horizon
      scanning exercise to link with business planning process.
     Facilitate cross working.
     Support the Annual Governance Statement generation process.
     Receive and react to the Use of Resources assessment.

Governance Officer Group

This group was created in 2007 for the purpose of improving the Council‟s
governance arrangements, maintaining the assurance framework, and drafting this
Annual Governance Statement. Its work consisted of:

      An annual review of the existing governance arrangements against the
       Corporate Governance Framework published by the Chartered Institute Of
       Public Finance and Accountancy (CIPFA), and the Society of Local Authority
       Chief Executives (Solace),
    Monitoring the effectiveness of NDC‟s governance arrangements throughout
       the year,
    Monitoring the implementation of actions plans to address any significant
       weaknesses reported in the Annual Governance Statement,
    Monitoring the application and effectiveness of NDC‟s Local Code of
       Governance, and recommend changes as appropriate.
   
Its role in maintaining the assurance framework has been to:

     Put in place an assurance framework that maps the council's strategic
      objectives to risks, controls and assurances, and provides members with
      information to support the governance statement (a diagram is appended),


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   Ensure that this assurance framework is fully embedded in the Council‟s
    business processes,
   Evaluate assurances provided by the framework through a defined
    evaluation process,
   Keep a central record of all assurances.

Heads of Service

The nine Heads of Service are responsible for their service areas, and annually
provide signed assurance statements on their effectiveness. During the year they
met monthly as a group, chaired by an Assistant Chief Executive, with every third
meeting incorporating all members of the Senior Management Team.

The joint quarterly meetings reviewed service level and corporate performance
against key performance measures, and financial progress against budgets. The
information provided at these meetings formed the basis for the quarterly
Performance and Use of Resources report to Members. The report ensured
Members were aware of the organisation‟s progress against key measures and
can take any appropriate control action.

At its monthly meetings, the Group received information on corporate
developments and both internal and external reviews of corporate performance.

The group assessed the impact on their service areas and contributed to the
implementation proposals. This enabled a uniform approach to implementation of
corporate initiatives throughout the services, and the delivery of cross service
development goals.

The Group provided a forum for information flow between Senior Management and
staff within the service delivery areas, enabling communication of key corporate
issues to be effectively passed up and down the organisation.

The forum enabled Heads of Service to ensure their Service Plans address cross
service developments as well as service specific targets, to ensure achievement of
the Corporate Business Plan targets.

Senior Management Team

The SMT meets twice each week to develop policy issues and also considers
internal control issues, including risk management, performance management,
compliances, efficiency and value for money, and financial management.

During the year all external and internal audit reports were considered by the
Senior Management Team before agreement of the recommendations. This
ensured the action that stemmed from them was properly integrated with the
Council‟s wider objectives.

The Senior Management Team reviewed and updated the Corporate Risk Register
quarterly, supported by the Corporate Risk Management Group.


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The Council‟s performance was reviewed quarterly. The Senior Management
Team are the first step in the chain of monitoring and action that culminated in
Executive decisions on the Performance and Use of Resources Report.

Health and Safety

Accessible information supports regular risk assessment and incident reporting
processes. This information included new framework risk assessments for „office
work‟, „office work at home‟ and for „site visits‟.

The Senior Management Team and the Council‟s Health Safety, and Welfare
Committee (a joint staff/Member/management committee) received quarterly
incidence statistics with notes of trends and actions taken. These fora supported
the Health and Safety Advisor‟s introduction of improvements and updates to
guidance or practices to mitigate risks/incidence issues.

There was an annual report to the Senior Management Team, and from 2008/9 an
annual report by Chief Executive to Council.

Partnership Group

The Council is making progress in improving its partnership arrangements. It has
conducted an audit of its significant partnerships, and is now discussing the results
with partners.

Key Members and officers have received specific training in minimising the risk,
and optimising the opportunities, presented by partnerships. However, this
remains an area than can be further improved.

A Partnership Group of officers was set up early in 2008 to improve our
governance arrangements relating to partnerships. So far this has resulted in a
revised and strengthened approval process that helps ensure that appropriate
governance arrangements are in place before a partnership is entered.




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    Significant governance issues
    North Devon Council has considered the outcomes of the governance
    arrangements referred too in this Statement. Where considered appropriate action
    plans have been developed to ensure the continuous improvement of the
    Council‟s internal control, risk management and corporate governance
    arrangements.

    The following governance issues were identified during 2007/08 as a result of the
    review of arrangements and by the work of external and internal audit:

    Areas identified in the Annual Audit and Inspection Letter
        a) CPA Assessment
                Issue                                   Action

1     Provide greater clarity on long term     A revised Sustainable Community
      outcomes for those living, working and   Strategy for the northern Devon area is
      visiting North Devon;                    being finalised, and clearly shows the
                                               vision for the future. It fully aligns with
                                               the Devon wide Sustainable
                                               Community Strategy.

                                               The relevant parts of this will be fully
                                               reflected in our Corporate Business
                                               Plan, which is scheduled for adoption
                                               by Council in June 2008.

2     Develop the capacity to manage           Matching specialist resources and
      ambitious redevelopment projects;        skills to redevelopment projects needs
                                               a multi-faceted approach. Improved
                                               procedures are in place for project
                                               management, risk management and
                                               resource planning. Training has been
                                               provided in project development and
                                               management techniques.

                                               Learning visits have been undertaken
                                               on town centre development schemes
                                               elsewhere in the country. There will
                                               need to be utilisation of internal skills
                                               and buying in external capacity and
                                               specialist skills where required.

                                               A governance model for Ilfracombe
                                               redevelopment has been approved by
                                               Members.

3     Ensure performance management            Improvement Plans have been drawn


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                 Issue                                    Action
     systems consistently address             up for all lower quartile performance
     underperformance;                        areas. These are being implemented.

                                              The role of the Overview and Scrutiny
                                              is being enhanced with a greater focus
                                              on in challenging poor performance,
                                              poor value for money, and delivery of
                                              Council objectives through
                                              partnerships.

4    Ensure greater consistency in            Partnership monitoring and evaluation
     measuring the contribution of            will be part of Executive monitoring of
     partnerships to local priorities; and    performance in 2008/9. Key partners
                                              are to be invited to present their
                                              performance to Executive.

                                              This will subsequently form part of
                                              Overview and Scrutiny Committee‟s
                                              challenge to Executive‟ role in 2008/9

5    Sustain and improve the quality of       Improvement Plans have been drawn
     council services so that they meet the   up for all lower quartile performance
     needs of all sections of community and   areas. These are being implemented.
     provide value for money.
                                              An officer group is now in operation to
                                              provide support to services that appear
                                              to provide poor value for money. Initial
                                              areas of focus are Development
                                              Control and Environmental & Public
                                              Health. Overview and Scrutiny
                                              Committee work programme for 2008/9
                                              to include a „critical friend‟ review of
                                              value for money reviews.

                                              Equality Impact Assessments are
                                              required for new policy and service
                                              initiatives




    Page 73 of 83
                            Statement Of Accounts 2007-08



          b) Use of Resources Assessment.

     This also addresses the steps being taken to meet the new Use of Resources
     criteria introduced from 31 March 2009. Key areas of focus for 2008/9 are Value
     for Money, Risk Management and Partnerships.
                             Issue                                     Action

6      Ensure that the review of the draft accounts          Done.
       identifies and corrects any material errors before
       submission to the auditor

7      Ensure that there are project appraisals, business    The Project Appraisal
       plans and affordability tests for new policy and      system and approach to
       capital developments                                  developing the Capital
                                                             Programme was further
                                                             strengthened for the
                                                             2008/9 budget setting. The
                                                             Step by Step guide to
                                                             project management has
                                                             been approved for higher
                                                             risk capital and revenue
                                                             schemes.

8      Put in place an assurance framework that maps the Done as part of the
       council's strategic objectives to risks, controls and preparation of this Annual
       assurances and ensure that it provides members        Governance Statement.
       with information to support the Statement on
       Internal Control

9      Continue strengthening the role of the audit          The Audit Committee was
       committee for example by providing challenge to       newly established in 2007
       the Executive when required and giving effective      and its role has developed
       leadership on governance, financial reporting and     over its first full year.
       audit issues

10     Ensure that standing orders, standing financial    Reviewed
       instructions and scheme of delegation are reviewed
       and updated as appropriate and that there are
       arrangements in place for monitoring compliance

11     Strengthen the arrangements in place for              Work in progress by
       countering fraud and corruption                       Bentley Jennison




     Page 74 of 83
                           Statement Of Accounts 2007-08



          c) Data Quality arrangements
                           Issue                                    Action

12    The council‟s data quality policy could be improved   Action to be targeted on
      by introducing a comprehensive and current set of     review of collection and
      operational procedures and guidance notes that        reporting of the new
      meet user needs and is fit for purpose.               national indicator set
                                                            which replaces the
                                                            existing performance
                                                            indicators from April
                                                            2008.

13    A business continuity plan should be developed        A Business Continuity
      across the Council to consistently provide            Plan has been developed
      protection for records and performance data which     across the Council.
      are vital to its continued effective functioning,

14    The roles and responsibilities below the strategic    Heads of Service Group
      level in relation to data quality should be clearly   working on generic job
      defined and documented, and incorporated into job     descriptions.
      descriptions. This has been completed for some
      but not all relevant staff.                           Management
                                                            Competency Framework
                                                            introduced in 2007/8.
                                                            Competency Framework
                                                            for all staff to be
                                                            introduced in 2008/9




     Page 75 of 83
                             Statement Of Accounts 2007-08

     Areas for improvement shown in Internal Audit’s Annual report (received in
     April 2008)

                     Issue                                   Action

15    Improve policy development by            In 2007/8 Bentley Jennison
      introducing risk management to           conducted a number of Member
      Members (other than the Audit            workshops on risk management and
      Committee).                              governance. These resulted in an
                                               action plan.

                                               A key action was risk training
                                               partnership governance. This has
                                               taken place for Members of the
                                               Executive and the Overview and
                                               Scrutiny Committee. Revised
                                               procedures are nearing completion.

16    Continue development of the              The Assurance Framework has been
      assurance framework and its              defined and documented, and a
      subsequent linkage to the Annual         depiction is appended. Specific
      Governance Statement.                    sections of the Annual Governance
                                               Statement refer to each of the
                                               framework‟s elements.

17    Ensure that risk register continues to   Service Risk Registers are presented
      be completed on a consistent basis       to the Audit Committee on a cyclical
      across the Authority                     basis.

                                               The Corporate Risk Management
                                               officer group has been created, and
                                               regularly reviews risk registers.
                                               Further work with Heads of Service
                                               planned for 2008/9 to improve
                                               consistency.




     Page 76 of 83
                      Statement Of Accounts 2007-08



Certification

We have been advised on the implications of the result of the review of the
effectiveness of the governance framework to address weaknesses and ensure
continuous improvement of the system is in place.

We propose over the coming year to take steps to address the above matters to
further enhance our governance arrangements. We are satisfied that these steps
will address the need for improvements that were identified in our review of
effectiveness and will monitor their implementation and operation as part of our
next annual review.

Signed:




John Sunderland.………………… …………………………………………………
Chief Executive




Page 77 of 83
                                 Statement of Accounts 2007/08

                                                               Maintenance of the Council‟s                   Recommendation of the policy and budgetary
North Devon Council                                         
                                                                corporate risk register (CRR).
                                                                Quarterly review of CRR for               
                                                                                                                framework to council.
                                                                                                                Recomment the strategic direction of the Council.
                                                                SMT and Audit Committee.                       Identify the Council‟s priorities.
Assurance Framework                                         
                                                            
                                                                Oversight of risk framework.
                                                                Annual report to Audit
                                                                                                          
                                                                                                          
                                                                                                                Review of key decisions and policies.
                                                                                                                Quarterly review of performance and annual target
                                                                Committee.                                      setting
                                                                                                                                                                                  Inspections.
                                                                                                                                                                                  Annual Audit and Inspection Letter.
                                                                                                                                                                                  Annual audit of data quality.
         Quarterly review of strategic and operational risk.                                                                                                                     Annual Use of Resources assessment.
         Monitoring of Corporate Business Plan targets.                                                                                                                          Annual Direction of Travel Statement.
         Quarterly review of performance.                                                                                                                                        Other reviews.
         Review of implementation of recommendation by Audit                                             Corporate                                                               Reports the outputs of its work to the
          Commission and other agencies (inc progress of CPA                                                                                                                       Council and the Audit Committee.
          improvement plan).                                                                                Risk                              Audit                               Places assurance on the work of Internal
                                                                                                         Management                                                                Audit.
                                                                                                                                           Commission
                                                                                                              Group
         Quarterly reporting and review of financial and
          operational performance through the Strategic                                                                                                                                Independently reviews areas of
                                                                                                                            Executive                                                   Executive activity, decisions, and other
          Management Group.                                                                                                                                                             function of the Council.
          Preparation and delivery of annual Service                                                                                                                                  Results are reported back to
           Plans.                                                                                       Senior                                Overview                                  Executive.
          Review of service risks.                                                                   Management                                and
          Implementation of audit recommendations.                                  Heads of
          Maintenance of control statements for key                                 Service            Team                                   Srutiny
           systems.
          Monitor and review performance of service                                                                                                                            Promoting and maintaining high standards of
           including data quality.                                                                                                                                               conduct by Members.
         Annual Assurance Statement on application of                                                                                                                          Assisting Members to observe the Codes of
          the control framework.                                                                 S151 and                   Annual                                               Conduct, including advise and training.
                                                                                                                                                      Standards                 Advising the Council on the adoption or
                                                                                                 Monitoring               Governance
                                                                                                                                                      Committee                  revision of the Members' Codes of Conduct.
                                                                                                  Officers                 Statement                                            Monitoring the operation of the Council‟s
         These statutory functions of these two                                                                                                                                 Members' Codes of Conduct.
          officers provide a source of assurance                                                                                                                                Overview of whistleblowing policy and any
          that the Council‟s systems of                                                                                                                                          complaints of fraud or corruption.
          governance and internal control are                                       Governance                                                                                  Overview of Protocol on Officer/Councillor
          effective and being complied with.                                                              Internal                             Audit                             Relations.
         Annual Statement completed by
                                                                                      Officer                                                                                   Overview of local planning code of conduct.
          Section 151 and Monitoring Officer of                                       Group                 audit                            Committee
          any material matters that require
          reporting in AGS.                                                                                                   Other
                                                                                                                                                                              Receive all internal audit reports including the
                                                                                                                             external                                          annual report on the level of assurance it can
                                                                                                                             agencies                                          give to the Council's corporate governance.
                                                                                                                                                                              Ensure effective audit follow up arrangements.
                                                                                                                                                                              Consider the external audit reports including
      Preparation of the AGS.                                                                                                             Partnership                         the annual letter and the report to those
                                                                                                         Health and
      Annual review of governance.                                                                                                                                            charged with governance.
                                                                                                          Safety                              Group                           Monitor the effective development and
                                                                                                                                                                               operation of risk management and corporate
                                                                                                                                                                               governance in the Council.
                                                                                                                                                                              Oversee the production of the Council's AGS
                                                                                                                                                                               and to recommend its adoption by Council.
                                                                                                                                                                              Consider the Council's compliance with its own
                                                                                                                                                                               and other published standards and controls.
         Annual and interim reports on systems of internal control and                                                                                                       Review the annual statement of accounts.
          their effectiveness
         Risk based audit approach.
         Annual audit and strategic audit plan.
         Review of key controls.
         Planned internal audit review of risk management
          arrangements.
         Review of service risks when audits are undertaken.                      Annual report on Health           Review by external
         Review of systems including accuracy, completeness,                       and Safety to SMT and              agencies e.g.                        Improved assurance from the
          timeliness and relevance of data.                                         Health Safety and Welfare          Ombudsman, BFI, Food                  council‟s partnership activities.
         Reports to SMT and the Audit Committee.                                   Committee, from 2008/9.            Standards Agency.                    To be created in early 2008.




 Page 78 of 83
                           Statement of Accounts 2007/08


Independent auditor’s report to the Members of North Devon District Council



Opinion on the financial statements

I have audited the Authority accounting statements and related notes of North Devon District Council
for the year ended 31 March 2008 under the Audit Commission Act 1998. The Authority accounting
statements comprise the Authority Income and Expenditure Account, the Authority Statement of the
Movement on the General Fund Balance, the Authority Balance Sheet, the Authority Statement of
Total Recognised Gains and Losses, the Authority Cash Flow Statement, the Collection Fund and the
related notes. These accounting statements have been prepared under the accounting policies set out
in the Statement of Accounting Policies.

This report is made solely to the members of North Devon District Council in accordance with Part II of
the Audit Commission Act 1998 and for no other purpose, as set out in paragraph 36 of the Statement
of Responsibilities of Auditors and of Audited Bodies prepared by the Audit Commission.


Respective responsibilities of the Responsible Financial Officer and auditor

The Responsible Financial Officer‟s responsibilities for preparing the financial statements in
accordance with relevant legal and regulatory requirements and the Statement of Recommended
Practice on Local Authority Accounting in the United Kingdom 2007 are set out in the Statement of
Responsibilities for the Statement of Accounts.

My responsibility is to audit the financial statements in accordance with relevant legal and
regulatory requirements and International Standards on Auditing (UK and Ireland).

I report to you my opinion as to whether the Authority accounting statements present fairly, in
accordance with relevant legal and regulatory requirements and the Statement of Recommended
Practice on Local Authority Accounting in the United Kingdom 2007 the financial position of the
Authority and its income and expenditure for the year.

I review whether the governance statement reflects compliance with „Delivering Good Governance in
Local Government: A Framework‟ published by CIPFA/SOLACE in June 2007. I report if it does not
comply with proper practices specified by CIPFA/SOLACE or if the statement is misleading or
inconsistent with other information I am aware of from my audit of the financial statements. I am not
required to consider, nor have I considered, whether the governance statement covers all risks and
controls. Neither am I required to form an opinion on the effectiveness of the Authority‟s corporate
governance procedures or its risk and control procedures

I read other information published with the Authority accounting statements, and consider whether it
is consistent with the audited Authority accounting statements. This other information comprises the
Explanatory Foreword. I consider the implications for my report if I become aware of any apparent
misstatements or material inconsistencies with the Authority accounting statements. My
responsibilities do not extend to any other information.


Basis of audit opinion

I conducted my audit in accordance with the Audit Commission Act 1998, the Code of Audit Practice
issued by the Audit Commission and International Standards on Auditing (UK and Ireland) issued by
the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to
the amounts and disclosures in the Authority accounting statements and related notes. It also
includes an assessment of the significant estimates and judgments made by the Authority in the
preparation of the Authority accounting statements and related notes, and of whether the accounting
policies are appropriate to the Authority‟s circumstances, consistently applied and adequately


Page 79 of 83
                           Statement of Accounts 2007/08


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 Authority accounting statements and related notes are free from material misstatement,
whether caused by fraud or other irregularity or error. In forming my opinion I also evaluated the
overall adequacy of the presentation of information in the Authority accounting statements and
related notes.

Opinion

In my opinion the Authority financial statements present fairly, in accordance with relevant legal and
regulatory requirements and the Statement of Recommended Practice on Local Authority Accounting
in the United Kingdom 2007, the financial position of the Authority as at 31March 2008 and its
income and expenditure for the year then ended.



Conclusion on arrangements for securing economy, efficiency and effectiveness in the use of
resources

Authority’s Responsibilities

The Authority is responsible for putting in place proper arrangements to secure economy, efficiency
and effectiveness in its use of resources, to ensure proper stewardship and governance and
regularly to review the adequacy and effectiveness of these arrangements.

Auditor’s Responsibilities

I am required by the Audit Commission Act 1998 to be satisfied that proper arrangements have been
made by the Authority for securing economy, efficiency and effectiveness in its use of resources. The
Code of Audit Practice issued by the Audit Commission requires me to report to you my conclusion in
relation to proper arrangements, having regard to relevant criteria specified by the Audit Commission
for principal local authorities. I report if significant matters have come to my attention which prevent
me from concluding that the Authority has made such proper arrangements. I am not required to
consider, nor have I considered, whether all aspects of the Authority‟s arrangements for securing
economy, efficiency and effectiveness in its use of resources are operating effectively.

Conclusion

I have undertaken my audit in accordance with the Code of Audit Practice and having regard to the
criteria for principal local authorities specified by the Audit Commission and published in December
2006, I am satisfied that, in all significant respects, North Devon District Council made proper
arrangements to secure economy, efficiency and effectiveness in its use of resources for the year
ending 31 March 2008.


Best Value Performance Plan

I have issued our statutory report on the audit of the authority‟s best value performance plan for the
financial year 2007/08 on 13 December 2007. I did not identify any matters to be reported to the
authority and did not make any recommendations on procedures in relation to the plan.

Certificate

I certify that I have completed the audit of the accounts in accordance with the requirements of the
Audit Commission Act 1998 and the Code of Audit Practice issued by the Audit Commission.



Page 80 of 83
                        Statement of Accounts 2007/08




Brian Bethell
District Auditor

The Audit Commission 5-6 Blenheim Court Lustleigh Close Matford Business Park Exeter EX2 8PW
29 September 2008




Page 81 of 83
                        Statement of Accounts 2007/08



                       NORTH DEVON DISTRICT COUNCIL

                     SCHEME FOR MEMBERS ALLOWANCES

                    PAYMENTS MADE BETWEEN APRIL 2007 - MARCH 2008

The following payments have been made to Councillors in accordance with the Members' Allowances
Scheme during the period of April 2007 to March 2008.

Councillor                                                  Basic        Special Responsibility
                                                         Allowance            Allowance
                                                              £                    £
Mrs Arnold                                                                                 2,197
Mrs Barker                                                       3,991
Bengey                                                                                         72
Brailey                                                          4,408                      5,819
Mrs Brown                                                          417
D Butt                                                           4,408                      4,503
K Butt                                                             417
Campbell                                                           417
Cann                                                             4,408                      4,296
Mrs Carter                                                         417
Mrs Chesters                                                     4,408                      3,879
Mrs Chugg                                                        3,991
Mrs Clark                                                          417
Cook                                                             4,408                      2,073
Crabb                                                            3,628
Mrs Croft                                                        3,991
Daniel                                                           4,408                      6,235
Darell                                                           3,991
Ms Davis                                                         4,408                      3,879
Down                                                                                           72
Edgell                                                           4,408                      3,879
Edmunds                                                          4,408                      2,944
Fowler                                                             417
Frances                                                            417
Gill                                                             3,991                      1,940
Greenslade                                                       4,408
Mrs Gubb                                                         4,408                        313
Hagley                                                             187
Harrison                                                         4,408                     14,201
Mrs Harrison                                                     3,991
Haydn-Higgins                                                      417
Haywood                                                          4,408                        417
Mrs Haywood                                                      3,991
Mrs Hibbert                                                      3,991
Mrs Hunt                                                         3,991
Joint                                                                                          72
Jones                                                            3,991                      2,062
Mrs Lewis                                                        1,991                        417
Ley                                                              4,408                      4,192
Mrs Lindley-Dore                                                                               72


Page 82 of 83
                     Statement of Accounts 2007/08


Lucas                                          4,408     3,879
Luggar                                         3,991
Macbeth                                          417
Mrs Manuel                                     4,408      417
Mathews                                        3,991
Mrs McCormack-Hole                             4,408
Moore                                            417
Moores                                         3,991
Mullen                                           417
Pagram                                           417
Payne                                          4,408       417
Prowse                                         4,408     8,314
Rennles                                          417
Mrs Sewell                                     4,408      417
Mrs Shapland                                     417      624
David Spear                                      417      417
Derrick Spear                                    417
Mrs Sussex                                     3,991
Travis                                           417      417
Tucker                                         4,408
Mrs Webber                                     4,408     4,296
White                                                      128
Wilkinson                                      4,408       417
Wilsher                                        4,408
Worden                                         3,991
Wright                                         3,991     3,879
J Yabsley                                      1,934
P Yabsley                                      3,991     1,313
Yelton                                            93

Totals                                      £188,568   £88,467

J.A. SUNDERLAND
CHIEF EXECUTIVE




Page 83 of 83

				
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