Forest Service Annual Report and Accounts 2005/2006 HC 1359
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(UU\HS9LWVY[ )URQWFRYHU %HOYRLU3DUN)RUHVW$UERUHWXP Forest Service Annual Report and Accounts For the year ended 31 March 2006 Laid before the Houses of Parliament, by the Department of Agriculture and Rural Development in accordance with Paragraph 12(2) and (4) of the Schedule to the Northern Ireland Act 2000 and Paragraph 36 of the Schedule to the Northern Ireland Act 2000 (Prescribed Documents) Order 2004. 19 July 2006 Laid before the Northern Ireland Assembly under section 11(3) (c) of the Government Resources and Accounts Act (Northern Ireland) 2001 by the Department of Agriculture and Rural Development. 19 July 2006 Ordered by The House of Commons to be printed 19 July 2006 +& /21'217KH6WDWLRQHU\2IÀFH NIA 340/03 Annual Report 2005 - 06 1 Should accessible formats such as large type, audio cassette or a language other than English be required, please contact the Customer Services Manager at Forest Service Headquarters and appropriate arrangements will be made as soon as possible. Forest Service Headquarters Dundonald House Upper Newtownards Road Belfast BT4 3SB Tel: 028 9052 4480 Fax: 028 9052 4570 e-mail: [email protected] web site: www.forestserviceni.gov.uk 2 Annual Report 2005 - 06 Contents Page Annual Report for the period 1 April 2005 – 31 March 2006 Chief Executive’s Foreword 5 Directors’ Report 7 Management Commentary 11 Remuneration Report 27 Accounts for the period 1 April 2005 – 31 March 2006 Statement of Chief Executive’s Responsibilities 35 Statement of Internal Control 36 &HUWL¿FDWHRI&RPSWUROOHUDQG$XGLWRU*HQHUDO 38 Accounts 39 Notes on the Accounts for the year ended 31 March 2006 42 Annual Report 2005 - 06 3 4 Annual Report 2005 - 06 Sloughan Glen, Co. Tyrone Chief Executive’s Foreword I am pleased to present the Annual Report and Accounts of the Forest Service for the year ended 31 March 2006. We achieved all of our Key Targets set by the Minister and achieved or substantially achieved 7 of the 9 Other Targets that relate to our main operational activities. We performed well against our 4 Performance Standards, with 3 targets met. Sustaining our existing forests and woodlands remains the Agency’s key business objective and this was emphasised in the forestry policy document: µ$6WUDWHJ\IRU6XVWDLQDELOLW\DQG*URZWK¶DQQRXQFHGE\WKH0LQLVWHULQ March 2006. As well as sustaining existing forests, the strategy commits us to H[SDQGLQJWKHDUHDRIIRUHVWVLJQL¿FDQWO\RYHUFRPLQJ\HDUVREWDLQLQJEHWWHU value from the public forest estate and developing the potential for increased UHFUHDWLRQDODFWLYLW\'XULQJWKH\HDUZHZHUHVXFFHVVIXOLQKDYLQJRXUFHUWL¿HG VWDWXVXQGHUWKH8.:RRGODQG$VVXUDQFH6WDQGDUGUHQHZHGIRUDIXUWKHU¿YH year period. A highlight of the year was the 50th anniversary of the opening of Tollymore Forest Park to the public, when invited guests attended the opening of an exhibition staged to mark the occasion. On 9 January 2006, Lord Rooker, Minister of Agriculture and Rural 'HYHORSPHQWDQQRXQFHGWKHVDOHRI*RVIRUG&DVWOH1RUWKHUQ,UHODQG¶VODUJHVW *UDGH$OLVWHGEXLOGLQJ7KLVZLOOVHFXUHWKHIXWXUHRIWKH&DVWOHZKLFKLVLQ urgent need of restoration. I would like to take this opportunity to express appreciation to the staff of the Agency for their commitment, efforts and support throughout the year in enabling the Agency to deliver the good outcomes that have been achieved. Malcolm Beatty Chief Executive Annual Report 2005 - 06 5 6 Annual Report 2005 - 06 Eucryphia - Belvoir Park Forest Directors’ Report Management Board The Forest Service Management Board consists of the Chief Executive, three executive directors and one non-executive director. The Chief Executive has overall responsibility for achieving the aims, objectives and targets set out in the Corporate and Business Plans, with each executive director having ownership and responsibility for achieving objectives and targets within their management control. The Agency’s headquarters are at Dundonald House in Belfast and its operational activities are organised through three Districts, West, East and 1RUWKZLWKRI¿FHVDW(QQLVNLOOHQ&DVWOHZHOODQDQG*DUYDJK$WUDLQLQJFHQWUH at Pomeroy Forestry School ceased operations at the end of the year and forestry training is now provided by the College of Agriculture, Food and Rural Enterprise. Appointments to the Board are normally made by open competition or internal promotion. At 31 March 2006, the Board’s membership was: Chief Executive Malcolm Beatty FICFor Director - Operations John Joe O’Boyle Director - Policy and Standards Stuart Morwood MICFor Director - Corporate Services Crawford McCully Non-executive Director Ian Forshaw BSc(For) FSA(Scot) v Pat Hunter Blair, Director of Policy and Standards, left the NICS on 1 July 2005 v Crawford McCully, Director of Corporate Services, retired in early April 2006 v Stuart Morwood was appointed Director of Policy and Standards on 14 November 2005 v *HUU\+LOOZDVDSSRLQWHG'LUHFWRURI&RUSRUDWH6HUYLFHVLQ$SULO Following an open competition, Malcolm Beatty was appointed Chief Executive on 26 March 1998 under the Senior Civil Service Management Code. The Chief Executive’s pay is explained in the Remuneration Report. Annual Report 2005 - 06 7 Accounts Direction The Forest Service’s audited Accounts for the Financial Year 31 March 2006 have been prepared in accordance with the Department of Finance and 3HUVRQQHO'LUHFWLRQXQGHU6HFWLRQ RIWKH*RYHUQPHQW5HVRXUFHVDQG Accounts Act (Northern Ireland) 2001. History and Statutory Background The Forest Service is an Executive Agency within the Department of Agriculture and Rural Development and is subject to the overall direction of the Minister with responsibility for the Department. The Department is responsible for promoting the interests of forestry under the 1953 Act. The Chief Executive is responsible to the Minister for the Agency’s operations and performance. The Minister determines the policy framework within which the Agency operates, the level of resources made available each year and the scope of Agency activities. The Minister also approves the annual business plans, sets key performance targets and monitors the Agency’s performance. The Forest Service has been an Agency since 1 April 1998. The Agency’s Framework Document sets out the context within which it operates. This includes its role, business objectives, performance measures, relationship with the Department and its accountability to the Minister and Parliament. Aims The aims of the Agency set out in the Framework Document are: “to contribute to the economic development of the entire forestry sector in Northern Ireland, whilst at the same time promoting the sustainable management of forests for multiple use and conserving and enhancing the rural environment”. Objectives Forest Service objectives give practical expression to these aims and are as follows: Operational v to encourage the extension of the areas of public and private woodland in Northern Ireland. v to promote the supply of wood from within Northern Ireland for industrial use. v to promote access to and use of Northern Ireland forests. v to protect and conserve forests and the associated areas of special natural and heritage interest. 8 Annual Report 2005 - 06 Customer Service v to pursue continuous improvement in the delivery and quality of service to the public in line with the principles set down in the Agency’s Customer Charters. 9DOXHIRU0RQH\(I¿FLHQF\ vWRPD[LPLVHRSHUDWLRQDOXVHDQG¿QDQFLDOUHWXUQVRQWKHDVVHWVRIWKH Forest Service estate through wood production and the exploitation of commercial opportunities. vWRVHFXUHRQJRLQJYDOXHIRUPRQH\DQGLPSURYHHI¿FLHQF\DQG effectiveness in the management of the Agency through the application of best management practice and standards. vWRH[WHQGSULYDWHVHFWRUFRPSHWLWLRQDQGRWKHUHI¿FLHQF\PHDVXUHVLQWKH provision of services, including, where possible, the development of public and private sector partnerships. vWRSURPRWHWKHLQYROYHPHQWRISULYDWH¿QDQFHLQ1RUWKHUQ,UHODQGIRUHVWU\ Pension Costs Further details in relation to the pension schemes are given in accounting policy note 1.4 to the accounts and in the Remuneration Report. &RQÀLFWRI,QWHUHVWV 1RPHPEHURIWKH%RDUGKROGVDSRVLWLRQLQDQ\FRPSDQ\ZKLFKPD\FRQÀLFW with their management responsibilities. Auditors’ Remuneration 7KH¿QDQFLDOVWDWHPHQWVDUHDXGLWHGE\WKH&RPSWUROOHUDQG$XGLWRU*HQHUDO IRU1RUWKHUQ,UHODQG$VKHDGRIWKH1RUWKHUQ,UHODQG$XGLW2I¿FHKHLVZKROO\ LQGHSHQGHQWDQGUHSRUWVKLV¿QGLQJVWR3DUOLDPHQW 7KHDXGLWRIWKH¿QDQFLDOVWDWHPHQWVIRUUHVXOWHGLQDQDXGLWIHH of £16,000 (2004-05: £21,200) and is included in Other Admin Costs in the Operating Cost Statement. The auditors did not provide any non-audit services during the year. Disclosure of information All accounting records were provided to the auditors for the purpose of the audit and all transactions undertaken by the Forest Service have been properly UHÀHFWHGDQGUHFRUGHGLQWKHDFFRXQWLQJUHFRUGV$OORWKHUUHFRUGVDQGUHODWHG information, including minutes of all management meetings which the auditors requested were supplied to them. Malcolm Beatty Chief Executive 28 June 2006 Annual Report 2005 - 06 9 10 Annual Report 2005 - 06 Willow Coppice - Loughgall Management Commentary Achievements against Key Ministerial Targets 7KH)RUHVW6HUYLFH%XVLQHVV3ODQLGHQWL¿HVDQXPEHURINH\SHUIRUPDQFH targets that cover the full spectrum of forestry objectives and outputs Operational 2005/2006 target 2005/2006 outturn 2006/2007 target Outputs Forest Policy By 31 March 2006, Target achieved Preliminary work will implementation publish a strategy The Strategy paper take place to revise the strategy for the delivery of was published on 24 Forestry