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Isle of Man Water Authority Lught-Reill Ushtey Ellan Vannin Allan Brown

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Isle of Man Water Authority Lught-Reill Ushtey Ellan Vannin Allan Brown Isle of Man Water Authority Lught-reill Ushtey Ellan Vannin Allan Brown Annual Report and Accounts Imraa as Coontaghyn Bleeaney 2009/2010 2 la MEMBERS OF THE BOARD Back row: M R Coleman (Board Member), C H Coole (Board Member), H M McCallion (Board Member) Front row: J A Smith (Chief Executive), T Crookall MHK (Chairman), Mrs C Christian MLC (Vice Chairman) Tim Crookall MHK Before being elected Member of the House of Keys for Peel in 2006 Tim Crookall was a postman, a builder and a Department of Health and Social Security Care Worker and served as a Peel Commissioner from 1991 – 2006. Since 2006 he has been a Member for the Department of Home Affairs, the Department of Transport and was Vice Chairman of the Office of Fair Trading. During 2009/10 he served as a Member for the Department of Local Government and the Environment. Additionally, he is presently a member of seven Tynwald and Keys Committees and was appointed Chairman of the Water Authority in May 2009. Clare Christian BSc MLC Before returning to the Island Clare Christian was a research chemist for Cadbury. As a member of Tynwald for over 20 years, Mrs Christian has served in both the House of Keys and the Legislative Council having been the Minister for the Department of Health and Social Security for many years and a Member of several other departments including Treasury,Transport, Local Government and the Environment and the Department of Trade and Industry. During 2009/10 she served as a member of the Department of Trade and Industry. She has also chaired the Insurance and Pensions Authority and the Planning Committee and is Chairman of the Standing Committee of Tynwald on Public Accounts. Additionally, she has participated in the work of a wide variety of Select and Standing Committees of Tynwald. She was appointed Vice Chairman of the Water Authority in May 2009. 3 Michael R. Coleman LLB(Hons)(Open), CEng, FBCS CITP, FIMIS Michael Coleman has been resident on the Isle of Man since August 1988 when he transferred from the Bahamas for what is now Coutts & Co. He is a Chartered Engineer, Chartered Fellow of the British Computer Society (BCS) and is Chairman of the Isle of Man International Section. Michael has considerable executive management experience having held numerous Directorships within Coutts & Co and other organisations. He also served as Joint Deputy Chairman of Coutts Bahamas and Coutts Cayman. He has had considerable experience of the water industry, having been responsible for information technology for a company specialising in the design and construction of water infrastructures based around major desalination plants located in the Middle East. This role also included responsibility for the process control systems that controlled the water production facilities. Michael has been a Member of the Board of the Water Authority since January 2002, being reappointed to the Board in February 2007. He is Chairman of the Investments, Wayleaves & Easements and Water Act Committees and serves as a member of the Audit Committee. Charles H. Coole Eur Ing, C Eng, MICE, FCIWEM Charles Coole was educated locally before being taken on as a trainee engineer with Douglas Corporation Water Department. After four years (with part-time study) he joined Manchester Corporation Water Works as an assistant engineer where he stayed for six years, continuing part-time study. A further move took him to the North West Worcestershire Board as a design engineer for four years, later joining Ward Ashcroft & Parkman (now Mouchel Parkman Consultants), initially working in Eastern Nigeria on refurbishment of water supplies damaged during the Biafran War. Charles spent eight years working for Parkman in Nigeria, gaining the position of Associate Partner and joining a World Bank mission to Eastern Nigeria appraising urban water supplies. Returning to the Isle of Man in 1979 Charles joined Rogers Consultants as a Company Secretary/Engineer, responsible for the day-to-day management of the company. Since 1984 he has worked as a consultant on a variety of projects, mainly large water supply schemes in Nigeria and Ethiopia, where his work included planning reports, detailed design work, construction administration and site supervision. Charles has been a Member of the Board of the Water Authority since January 2002, being reappointed to the Board in February 2007. He is Chairman of the Capital Projects Steering Group and Chairman of the Authority’s Health and Safety Committee. Hugh M. McCallion FISE, M.Inst.M. Hugh McCallion was born in Belfast but spent the majority of his career in England. He started as a design engineer with De Havilland Propellers working on such projects as Blue Streak and Blue Steel Missiles before moving into sales and marketing and then management, eventually being appointed Managing Director of a company manufacturing metal components using a chemical machining process. During this period, in 1978, he was the first European to be invited to join the Photo Chemical Machining Institute, which has its head office in Cape Cod, Massachusetts, USA. PCMI was then a USA organisation but is now an international one. Hugh was the first non-American to join the Board and become President and is still an active past President Board Member. He is currently Chairman of a pump and filtration company in California and Shanghai and brings with him a wealth of commercial experience as well as knowledge of engineering and water treatment. Hugh has been a Member of the Board of the Water Authority from October 2004 to January 2007 and was reappointed a Member of the Board in February 2007. He is Chairman of the Authority’s Audit Committee and serves as a member of the Investments Committee and the Capital Projects Steering Group. 4 16; CONTENTS Foreword Page 5 Chairman’s Statement Page 6 Statement of Internal Control Pages 7 - 8 Chief Executive’s Report Pages 9 - 17 Statement of the Board Page 18 Officers and Professional Advisors Page 18 Report of the Independent Auditors Pages 19 - 20 Income and Expenditure Account Page 21 Balance Sheet Page 22 Cash Flow Statement Page 23 Notes to the Accounts Pages 24 - 30 Meetings and Sites/Works Visits Page 31 5 FOREWORD TO THE ANNUAL REPORT AND ACCOUNTS 2009/10 The purpose of this foreword is to offer an overview of the issues that the Board of the Isle of Man Water Authority (the Authority) consider to be the most significant financial matters reported within the 2009/10 accounts. This foreword also confirms the overall sustainability of the Authority and thereby gives comfort to customers that the quality of water supplied and the future availability of water resources will be maintained and monitored to industry standards.The Authority will continue to operate prudent and regularly reviewed financial controls that will ensure value for money. 1. The Authority is wholly owned by the Isle of Man Government. 2. The Authority is funded through the water rates with its capital expenditure supported by a Treasury bond with a value of £75 million taken out by Government in 2000.This Bond is repayable in full in March 2030 and a sinking fund is in place which is funded to meet this obligation. 3. The current financial position shown within these accounts is that the Water Authority has net assets of £44.9m and a positive cash flow in 2009/10 from revenue activities of £6m.The Accounts for 2009/10 show a surplus of £4.439 million, which is an essential part of both the financing of capital schemes between now and 2021 and the building up suitable interim reserves to be able to repay in full the £75m Treasury Bond in 2030. 4. The Asset Management Plan (AMP) spend to March 2009 totals almost £75m including £40m for the two new Water Treatment Works at Sulby (Opened Nov 2005) and Douglas (Opened May 2008). A further £34m at 2010 prices is scheduled to be spent between April 2010 and March 2021.This will then conclude the 20-year AMP programme set out on 1999 and revised 2002. 5. The Authority runs a detailed financial model each year to continually review the long-term sustainability of the Authority and confirm its ability to meet the commitments made to Tynwald in 1999. 6. The Authority continues to manage its funds prudently with a return on investments during 2009/10 which contributed £1.6m to the overall annual surplus. 7. The Authority completes a Statement of Internal Control which is approved by the Board and issued to Treasury in January of each year. A full annual Statement of Internal Control from January 2010 is included in this year’s Report and Accounts. 8. It is worth noting in the current climate that the Water Authority has no direct Pensions liabilities but does pay in full all annual Treasury demands for Employers superannuation contributions. 9. The Authority has a policy of reporting all exceptional items to Board,Treasury and within the body of the Report and Accounts when of material importance. 10. The Authority is obliged to comply with all changes of regulations and standards as set by industry or regulatory powers.Any material changes within the year are disclosed within the Report and Accounts. 11. As of April 1st 2010, the Water Authority was merged with the Sewerage Authority to form the Isle of Man Water and Sewerage Authority a wholly-owned Statutory Board of the Isle of Man Government.The Report and Accounts in future will be for the merged Authority. 12. Asset valuations for non-working assets were re-valued under SORP 2007 regulations and resulted in an increased property valuation in the sinking fund from £0.3 to £1.7m.
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