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    Annual Report & Accounts 1 April 2017 to 31 March 2018


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    Contents Page Chairman’s Foreword 4 Chief Executive Officer’s Statement 5 Narrative Report 6 Statement of Responsibility for the Accounts 13 Independent Auditor’s Report 14 Comprehensive Income and Expenditure Statement 15 Balance Sheet 16 Movement in Reserves Statement 17 Statement of Cash Flows 18 Accounting Policies 19 Notes to the Accounts 25 Annual Governance Statement 38 Glossary of Terms 49 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 3


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    Chairman’s Foreword This annual report is published at a significant juncture in the transformation of Old Oak, a year since my appointment as Chairman of OPDC in Spring 2017 and just over three years since the establishment of the Mayoral Development Corporation. As Chairman of the Board, I oversee a ten-strong board responsible for governing the OPDC. With a number of parties involved in the project, including three local authorities, a number of transport providers, local residents, businesses and community groups – and lots of different people with different interests and objectives - my focus has been on the vision, the strategy, the high-level interaction and helping with the relationship between the Mayor and government departments to turn this massive regeneration opportunity into a thriving new quarter for London. Over the coming year, we will keep the momentum going on projects that have already started, including the Local Plan re-consultation, which will now include Old Oak Masterplan options, and the Great Place Scheme. In addition, we will ensure that we get over the starting line on projects like the Good Growth Fund, which will enable us to kick-start early placemaking enhancements that will allow us to improve key routes around the site and make connections with the wider communities. We will also be progressing a submission to Government for the Housing Infrastructure Fund, which will help us unlock Old Oak and Park Royal to create the first stages of a vibrant new area of North West London, ultimately with capacity for 25,500 new homes and 65,000 new jobs in one of the capital's largest brownfield sites. As non-executive Chairman, I cannot claim credit for more than a fraction of what has been achieved. I am deeply indebted to my fellow board members for their help, support and wise counsel. I am also hugely grateful to the OPDC executive team for their hard work in delivering such a busy and challenging programme of activity. And in this context, I would particularly like to thank Victoria Hills who stepped down in April this year and who did an excellent job in setting up the MDC and Michael Mulhern who has stepped in as interim Chief Executive. Each made, and are making, the Chairman's lot a more fulfilling and even pleasurable experience than it would otherwise have been without them. We are a Mayoral Development Corporation and it is our duty to support the Mayor in delivering on his commitment and vision to create a City for all Londoners. We continue to believe that Old Oak and Park Royal has a valuable and vital part to play in realising that vision. Liz Peace CBE Chairman 31 May 2018 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 4


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    Chief Executive Officer’s Statement During the third year of the Old Oak and Park Royal Development Corporation’s (OPDC’s) existence, steady progress has continued in establishing strong foundations in which to take forward what will become the most connected opportunity area in the UK. The organisation has continued to establish a sound planning framework for the area, with the Local Plan smoothly passing through the second stage consultation and a new neighbourhood area designated. There has been focus on early delivery, through the development of a Business Plan for Old Oak North setting out options to bring forward development across the area, and a couple of thousand homes consented over the last year, delivering much needed housing for the local area. With Royal Assent of the HS2 Bill secured, and HS2 now on the ground at the site of the future Old Oak Common station, OPDC has worked hard with the HS2 team to ensure the future design will make the most of the significant opportunity to integrate with existing and future local communities, as well as enabling new development. There has been progress on making the most of Park Royal, which will see several early improvements, and the OPDC team have provided support to HS2 in their conversations with local businesses to help them prepare for the arrival of HS2. The Great Place programme and the award of £1.5 million funding from Arts Council England and Heritage Lottery Fund’s Great Place Scheme to support the ambitious and community-focused project Made in Park Royal, is now well underway. We have continued to host community events including engagement forums and consultation meetings, forming strong links locally. The appointment of Liz Peace CBE as Chairman of OPDC in April 2017 has further strengthened the organisation, and the ground-breaking of our first major scheme in September 2017 was an important milestone in demonstrating the ability of OPDC to drive forward delivery of affordable homes for Londoners. The £175m Oaklands scheme will deliver the first 605 homes and I’m confident that OPDC will continue to make early progress. Our focus now turns to how best to fund the significant future infrastructure requirements, and how best to bring forward the vast swathes of publicly owned land at Old Oak and Park Royal to support the comprehensive regeneration of the Opportunity Area. We concluded our third year of operation in a sound financial position, with the groundwork laid for the redevelopment of the area, which has the potential to deliver 24,000 new homes and 55,000 jobs in Old Oak and 1,500 new homes and 10,000 jobs on the adjoining Park Royal industrial estate. Victoria Hills Chief Executive Officer (Resigned 13 April 2018) Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 5


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    Narrative Report The narrative report is a statement of the Corporation’s financial performance and demonstration of value for money in the use of its resources over the financial year. The Corporation’s annual statement of accounts has been prepared in accordance with the 2017/18 Code of Practice on Local Authority Accounting and International Financial Reporting Standards. All local authorities in England are required to provide a narrative report with the Statement of Accounts under the Accounts and Audit Regulations. There is also a glossary of financial terms that is intended to assist the reader to understand the specialist accounting terms that are contained within the Statement of Accounts. 1. Purpose of Major Schedules within the Financial Statements The nature and purpose of the primary schedules included within the financial statements are set out below: Comprehensive Income and Expenditure Statement This statement shows both the revenue received and the costs incurred in the year of providing services, in accordance with the CIPFA Code of Practice. Balance Sheet The balance sheet shows the value, as at the balance sheet date, of the assets and liabilities recognised by the Corporation. The net assets of the Corporation (assets less liabilities) are matched by the reserves held by the Corporation. Reserves are reported in two categories. The first category of reserves is usable reserves, being those reserves that the Corporation may use to provide services, subject to the need to maintain a prudent level of reserves. The second category of reserves is those that the Corporation is not able to use to provide services. This category of reserves includes reserves that are impacted by timing differences shown in the movement in reserves statement line 'Adjustments between accounting basis and funding basis under regulations'. Movement in Reserves Statement This statement shows the movements in the year on the different reserves held by the Corporation, analysed between usable reserves and unusable reserves. The statement shows how the movement in the Corporation’s reserves is broken down between gains and losses recognised on an accounting basis and the statutory adjustments required to control the amounts chargeable to council tax for the year. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 6


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    Narrative Report (continued) Statement of Cash Flows The cash flow statement shows the movements in cash and cash equivalents of the Corporation during the financial year. The statement shows how the Corporation generates and uses cash and cash equivalents by classifying cash flows as derived from operating and financing activities. 2. Overview Comprehensive Income and Expenditure Statement Income and expenditure, as reported in the management accounts, shows neither a surplus nor a deficit as the GLA granted funding to meet expenditure, which fell within agreed budgets. The Comprehensive Income and Expenditure Statement shows a deficit of £0.382m due to adjustments to the cost of services for amounts not reported to management. These adjustments relate in the main to pension service costs and accumulated absences. Balance Sheet The balance sheet shows a net liability of £0.734m in unusable reserves relating to pensions liabilities. Cash Flow Statement The cash flow statement shows a decrease in cash balances by £0.39m to -£0.319m. Movement in Reserves Statement The Corporation has no usable reserves as the level of funding from the GLA matched the level of expenditure during the year. This statement shows movements relating to pensions liabilities that give rise to a negative balance on unusable reserves of £0.734m. 3. An Introduction to Old Oak and Park Royal Development Corporation The Old Oak and Park Royal Development Corporation (OPDC) is a Mayoral Development Corporation, established under the provisions of the Localism Act 2011. On 1 April 2015, the Mayor of London established OPDC after it was identified that the transport investment from the new proposed HS2 and Crossrail interchange station could be capitalised upon to drive forward the regeneration of brownfield land within the surrounding area, developing a dynamic new heart for west London where people want to live, work and visit; driving innovation and growth in London and the Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 7


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    Narrative Report (continued) UK; and creating opportunities for local people. As a result, it has the potential to become Europe’s largest regeneration project. The High Speed Rail (London – West Midlands) Act (2017) was given Royal Assent in February 2017 and provides the legislative framework for the construction of HS2. Old Oak Common station (connecting HS2, the Elizabeth Line and National Rail) is set to open in 2026. However, there are significant opportunities to bring forward regeneration in advance of this around the existing rail stations in the area, specifically at North Acton on the Central Line and at Willesden Junction on the Bakerloo Line and London Overground. It is the OPDC mission to secure the maximum benefits for London and Londoners in the area, by achieving the following: • transforming one of London’s most inaccessible areas into a well-connected, world-class transport interchange; • providing new housing and commercial development, surrounded by sustainable and thriving neighbourhoods and valued amenity space; • protecting and improving Wormwood Scrubs. 4. Strategic review of the Old Oak and Park Royal Development Corporation In June 2016, the Mayor of London commissioned the Greater London Authority to undertake a review of the strategic direction and work programme of the OPDC. This was in the context of the Mayor recognising the importance of the regeneration project to London and aimed to assess the strategic direction of the organisation and re- evaluate the programme of work. On conclusion of the review in November 2016, the GLA published the high-level findings. OPDC accepted all of the recommendations made in the review and OPDC officers drafted a plan for the implementation of the review’s recommendations, with the OPDC Board maintaining regular oversight of progress. The Mayor’s high-level findings and the OPDC implementation plan are available on the following webpage; https://www.london.gov.uk/what-we-do/regeneration/regeneration- publications/strategic-review-old-oak-and-park-royal 5. 2017/18 Financial Summary The financial performance of the Corporation is regularly monitored and reviewed throughout the year to assess financial stewardship, with strong financial management and control being a cornerstone of management practices, contributing to the effectiveness and efficiency of programme and service delivery across the organisation. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 8


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    Narrative Report (continued) Planning Grant Mayoral CIL Other Fees £7.163m £0.159m £0.010m £0.462m Total Resources = £7.794m Corporate CEO Planning Technical Operations £0.709m £2.103 £2.871m £2.111m Of the approved Budget of £8.5m in 2017/18, there was net expenditure of £7.2m (excluding grant income), resulting in an underspend of £1.3m. The underspend has primarily arisen from: • early receipt of Mayoral CIL income • delays to the works for Willesden Junction (due to prioritisation of TfL/NR projects ahead of OPDC) • as a result of extensive engagement and promotion of the OPDC proposals for the Opportunity Area with UKPN and HS2 Ltd, UKPN gained approval from their Board to fund upgrades to the electricity supply at the Atlas Road substation • budget being held to cover the sponsorship underwrite for the Great Place Scheme • Underspend in salary and allowances budget due to the Corporation continuing to carry a number of staff and Board Member vacancies during the year 6. Corporation’s Performance A Strategic Plan was published in the summer of 2016 and provides the Corporation with a direction of travel for a period of three years (2016-2019). This plan also presents a set of strategic objectives which underpin the delivery of the Corporation’s mission and vision. This document is underpinned by: • An Annual Report, setting out OPDC’s achievements; • A Business Plan incorporating the OPDC’s higher level milestones and delivery targets; Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 9


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    Narrative Report (continued) • An Operational Work Plan setting out a programme of work over the next three years; • A Budget; • Internal governance and performance management systems designed to manage and quality-assure delivery. The organisation reports on a suite of performance indicators monthly, which includes reviewing financial performance, the staffing establishment, sickness absence and the housing planning pipeline. The Corporate Performance Dashboard for 2017/18 can be found on the following page; https://www.london.gov.uk/moderngov/documents/s64325/Annexe%20F%20- %20Appendix%20B%20-%20Corporate%20Performance%20Dashboard.pdf 7. Achievements 2017/18 Some of the key achievements over the last year include: • Business Plan: Old Oak and Park Royal Development Corporation approved the business plan for Old Oak North and made a bid to the Housing Infrastructure Fund for funding to unlock the area for re-development by allowing significant investment in utility and transport Infrastructure which will support the provision of circa 10,000-12,000 homes and 7,500 jobs in the area. Great Place Scheme: Secured £1.5 million through the Heritage Lottery Fund and Arts Council’s Great Place Scheme – a new fund that puts arts and heritage at the heart of communities. A three year of programme of world-class participatory arts and culture activities is now underway, which will uncover, showcase and celebrate the rich heritage and culture of Park Royal, and help to shape the future of Old Oak. The project will be steered and shaped by the local community, both residential and business. We have established a regular programme of community engagement events, which will result in a large advisory group from which we can draw specific knowledge and support, and several working groups for particular areas of the programme. We will provide opportunities for 2,000 ‘Active Citizens’ to take part in the project over the course of the three years, providing them with opportunities for training and skills, improved confidence and wellbeing and encouraging wider participation in arts and culture. • Delivering Infrastructure & growth: Despite good transport connections around the edges of the site, accessibility and connectivity through the site at Old Oak is poor. The area is severed by multiple railway lines and the Grand Union Canal. Consequently, there are limited crossing points and a number of barriers to movement. The site also has significant level changes which create further connectivity challenges. OPDC has led the design development of a comprehensive Masterplan and the associated Infrastructure requirements for the Old Oak North area. This supporting information has fed into a Business Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 10


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    Narrative Report (continued) Plan allowing OPDC to apply for funding through the Housing Infrastructure Fund and we have been successful in progressing through the Expression of Interest Stage. In order to facilitate the delivery of new homes and unlock Old Oak North for redevelopment, it has been imperative to develop strategies for vital infrastructure such as electrical power, heat energy, telecommunications, schools and health care facilities. In support of our ambitious plan to build 10,000-12,000 new homes by 2033, the Infrastructure team engaged extensively with HS2, UKPN and SSE to develop the strategy for the additional electrical power needed. As a result of this engagement, UKPN went to their Board and gained approval to make an ‘Opportunistic Investment’ - basically providing infrastructure ahead of need. This is a first for a regulated company and is testament to the work the Infrastructure team did in demonstrating the need and strategic plans for the area. Through our engagement with HS2 we have also developed a strategy where we will collaborate and share their infrastructure, reducing disruption in the area. If we are successful in our bid for HIF funding this will kick start the development by allowing significant investment in Utility and Transport Infrastructure increasing the value of the land through improved access and utility provision. This will support the provision of circa 10,000-12,000 homes and 7,500 jobs in the area. Through our engagement with HS2 we are developing a joint strategy that could potentially make substantial savings to the public purse. This links to the Mayor’s aspiration to deliver infrastructure and growth in London. Successful procurement of consultants and inception of Park Royal Centre Masterplan: In March 2018, OPDC, in collaboration with the London Borough of Brent and Central Middlesex Hospital, procured architectural consultants, We Made That, to develop a masterplan for Park Royal Centre. This Centre was identified as a neighbourhood town centre in the Local Plan with potential to accommodate a minimum of 1,400 new jobs, 650 new homes and 3,000 sqm of new town centre floorspace, helping to deliver the Mayor’s manifesto commitments on new homes and jobs. The Masterplan will look at development opportunities in the centre and recommend transport improvements with the potential to reduce congestion, including encouraging healthier modes of transport such as walking and cycling. It will also look at how the centre can be better integrated with Central Middlesex Hospital and provide enhancements to public realm helping to make the area a safer and more pleasant place for people to live, work and travel. The masterplan will be completed later this year. Improving Air Quality: The OPDC Infrastructure team led the development of an Energy Strategy for the Opportunity Area that uses an innovative approach to extracting low carbon heat from major sewers in the area which will provide a District Heating Solution serving circa 10,000-12,000 housing units. This will allow the base heat load (the majority of the thermal load throughout the year) for the development area to be served from sustainable low carbon sources. Providing thermal power in this manner will contribute to the improvement of the Air Quality in an area blighted by road traffic pollution. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 11


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    Narrative Report (continued) 8. 2018/19 Upcoming priorities for the year ahead include: • Local Plan and CIL: adopted by end of 2018/19; • Securing HIF funding: including fully worked up business case with support secured from MHCLG; • Masterplan: Full masterplan developed by summer 2018; • Infrastructure & utilities strategies: signed off by Board; • Rail Stations: Clear position on station design and delivery (HS2 & Overground stations) agreed with delivery partners; • Great Place Scheme: publicly launched and early projects underway; • Housing delivery: GLA delivery target of 1,300 annual homes is worked towards. 9. Corporate Risks The Corporation regularly reviews risks at a project, directorate and corporate level. The table below illustrates the current top corporate risk identified by the Corporation. Risk area Mitigated Severity Funding and Finance Insufficient financing/funding for Old Oak’s development and RED infrastructure means it is not possible to realise ambitions for regenerating Old Oak. There are a further 7 risks classified with amber mitigated severity and 9 risks classified with green mitigated severity. The full Corporate Risk Register can be found on the following webpage; https://www.london.gov.uk/moderngovopdc/documents/s57644/Item%2010b%20- %20Appendix%20A%20-%20OPDC%20Corporate%20Risk%20Areas.pdf Doug Wilson CA Chief Finance Officer 31 May 2018 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 12


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    Statement of Responsibility for the Accounts The Development Corporation’s responsibilities The Development Corporation is required to: • make arrangements for the proper administration of its financial affairs and to secure that one of its officers has responsibility for the administration of those affairs. In the Development Corporation, that officer is the Chief Finance Officer; • manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; and • approve the Statement of Accounts. The Chief Finance Officer’s responsibilities The Chief Finance Officer is responsible for the preparation of the Statement of Accounts for the Development Corporation in accordance with proper practices as set out in the CIPFA LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (the Code). In preparing this Statement of Accounts, the Chief Finance Officer has: • selected suitable accounting policies and then applied them consistently; • made judgements and estimates that were reasonable and prudent; • complied with the Code; • kept proper accounting records which were up to date, and • taken reasonable steps for the prevention and detection of fraud and other irregularities. Certificate of the Chief Finance Officer I certify that the Statement of Accounts gives a true and fair view of the financial position of the Development Corporation at the accounting date and of the income and expenditure for the year ended 31 March 2018. Doug Wilson CA Chief Finance Officer 31 May 2018 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 13


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    Independent Auditor’s Report to members of the Old Oak and Park Royal Development Corporation To be inserted once the External Audit is complete Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 14


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    Core Financial Statements Comprehensive Income and Expenditure Statement For the year ended 31 March 2018 31 March 2018 31 March 2017 Notes £000 £000 Gross income 2 (7,794) (6,922) Gross expenditure 2 8,166 6,974 Net cost of services 372 52 Financing and investment expenditure 5 11 8 (Surplus) or deficit on provision of services 383 60 Corporation tax 7 (1) (2) (Surplus) or deficit on the provision of services after tax 382 58 Remeasurement of the net defined benefit liability/asset 10 (191) 164 Total comprehensive income and expenditure 191 222 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 15


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    Balance Sheet As at 31 March 2018 31 March 2018 31 March 2017 Notes £000 £000 Current assets Short term debtors 8 6,112 1,454 Cash and cash equivalents 71 Total assets 6,112 1,525 Current liabilities Cash and cash equivalents (319) 0 Short term creditors 9 (5,433) (1,541) Long term liabilities Retirement benefit obligation 10 (698) (526) Capital Grants Receipts In Advance 6 (396) 0 Total liabilities (6,846) (2,067) Net liabilities (734) (542) Reserves Unusable reserves 12 734 542 Total reserves 734 542 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 16


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    Movement in Reserves Statement As at 31 March 2018 Total General Usable Unusable Total Fund Reserves Reserves Reserves Notes £000 £000 £000 £000 Balance as at 1 April 2017 0 0 542 542 Movement in reserves during 2017/18 Surplus or deficit on the provision of services 383 383 0 383 Other Comprehensive Income and Expenditure 0 0 (191) (191) Total Comprehensive Income and Expenditure 383 383 (191) 192 Adjustments from income and expenditure charged under the 1 (383) (383) 383 0 accounting basis to the funding basis Decrease or (increase) in 2017/18 (0) (0) 192 192 Balance as at 31 March 2018 (0) (0) 734 734 Total General Usable Unusable Total Fund Reserves Reserves Reserves Notes £000 £000 £000 £000 Balance as at 1 April 2016 0 0 320 320 Movement in reserves during 2016/17 Surplus or deficit on the provision of services 58 58 0 58 Other Comprehensive Income and Expenditure 164 164 Total Comprehensive Income and Expenditure 58 58 164 222 Adjustments from income and expenditure charged under the 1 (58) (58) 58 0 accounting basis to the funding basis Decrease or (increase) in 2017/18 0 0 222 222 Balance as at 31 March 2017 0 0 542 542 The adjustment between the accounting basis and funding under regulation is the same as that for the EFA (note 1), but the signage is opposite to the EFA. Movement in General Fund Unusable General Fund Balance Balance Reserves £000 £000 £000 Adjustments to the Revenue Resources Holiday pay (transferred to the Accumulated Absences reserve) (19) 19 Pension cost (transferred to (or from) the Pensions Reserve) (363) 363 Total Adjustments (382) 382 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 17


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    Statement of Cash Flows For the year ended 31 March 2018 31 March 2018 31 March 2017 Notes £000 £000 Net surplus or (deficit) on the provision of services (382) (58) Adjustment to surplus or deficit on the provision of services for noncash movements 11 (404) (1,026) Adjust for items included in the net surplus or deficiton the provision of services that are investing and financing activities 0 0 Net Cash flows from operating activities (786) (1,084) Net Cash flows from Investing Activities 396 0 Net Cash flows from Financing Activities 0 Net increase or (decrease) in cash and cash equivalents (390) (1,084) Cash and cash equivalents at the beginning of the reporting period 71 1,155 Cash and cash equivalents at the end of the reporting period (319) 71 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 18


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    Accounting Policies a) Code of practice The Corporation is required to prepare an annual Statement of Accounts by the Accounts and Audit (England) Regulations 2015. These regulations require the financial statements to be prepared in accordance with proper accounting practices. These practices primarily comprise the Code of Practice on Local Authority Accounting in the United Kingdom 2017/18 (the Code), supported by International Financial Reporting Standards (IFRS) adopted by the European Union and statutory guidance issued under section 12 of the Local Government Act 2003. The Statement of Accounts summarises the Corporation’s transactions for the 2017/18 financial year and its position at 31 March 2018. The Corporation’s financial statements have been prepared in accordance with the Code and IFRS. b) Basis of accounting The Accounts are made up to 31 March 2018. The accounting policies set out below have been applied consistently in the period presented in these financial statements. The Accounts have been prepared under the accruals concept and in accordance with the historical cost accounting convention. Where items are sufficiently significant by virtue of their size or nature, they are disclosed separately in the financial statements in order to aid the reader's understanding of the Corporation's performance. c) Accruals of income and expenditure Activity is accounted for in the year that it takes place, not when cash payments are made or received. In particular, revenue from the provision of services is recognised when the Corporation can measure reliably the percentage of completion of the transaction and it is probable that economic benefits or service potential associated with the transaction will flow to the Corporation. Where revenue and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. d) Going concern The financial statements have been prepared on a going concern basis as it is considered that the Corporation will continue in operational existence for the foreseeable future and meet its liabilities as they fall due for payment. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 19


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    Accounting Policies (continued) e) The application of new and revised standards The Code requires the Corporation to identify any accounting standards that have been issued but have yet to be adopted and could have a material impact on the Statement of Accounts. There are no such standards applicable to the Corporation. f) Cash and Cash Equivalents Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. g) Critical judgements on applying accounting policies. In applying the accounting policies, the Corporation has had to make certain judgements about complex transactions or those involving uncertainty about future events. The critical judgements made in the Statement of Accounts are: There is a degree of uncertainty about future levels of funding for the Corporation, as the resources required to deliver housing and economic growth in the area are yet to be identified. However, the Corporation has determined that this uncertainty is not yet sufficient to provide an indication that its long-term objectives will not be achieved. A Business Plan for Old Oak North has been prepared. h) Assumptions made about the future and major sources of estimation uncertainty The preparation of financial statements in conformity with the Code requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Corporation’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions or estimates are significant to the financial statements and specifically to note 10 to the Accounts is disclosed below: Effect if actual results differ from Item Uncertainties assumptions Pensions liability The estimation of the net liability to The assumptions interact in pay pensions depends on a number complex ways. The actuaries of complex judgements relating to review the assumptions triennially the discount rates to be used, the and changes are adjusted for in the rate at which salaries are projected accounts. to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 20


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    Accounting Policies (continued) i) Events after the Balance Sheet date Events after the Balance Sheet date are those events, both favourable and unfavourable, that occur between the end of the reporting period and the date when the Statement of Accounts is authorised for issue. Two types of events can be identified: Adjusting events Those events that provide evidence of conditions that existed at the end of the reporting period – the Statement of Accounts is adjusted to reflect such events. Non-adjusting events Those events that are indicative of conditions that arose after the reporting period – the Statement of Accounts is not adjusted to reflect such items but, where a category of events would have a material effect, disclosure is made in the notes of the nature of the events and either their estimated financial effect or a statement that such an estimate cannot be made reliably. Events taking place after the date of authorisation for issue are not reflected in the Statement of Accounts. j) Revenue recognition Revenue is recognised when the significant risks and rewards of ownership have passed to the buyer and it can be reliably measured. Revenue generated from planning fees is recorded on receiving a valid application so there is very minimal risk. The Corporation is grant-funded by the Greater London Authority therefore there is little risk in recognising this revenue income too. k) Government grants OPDC received grant funding from the Greater London Authority (GLA), which has no conditions and is not a specific grant, a New Burdens Grant payment for Brownfield Land Registers and s106 monies. Funding by the GLA is provided to OPDC to match their revenue (running) costs and spend profile therefore the OPDC does not hold significant grant surpluses. l) Corporation and chargeable gains taxation The Corporation is subject to corporation tax and complies with the Corporation Tax Acts. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 21


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    Accounting Policies (continued) m) Value Added Tax (VAT) VAT payable is included as an expense only to the extent that it is not recoverable from Her Majesty’s Revenue and Customs. VAT receivable is excluded from income. n) Employee benefits Benefits Payable during Employment Short-term employee benefits are those due to be settled within twelve months of the year-end. They include benefits such as salaries, other remuneration, paid annual leave and paid sick leave – these are recognised as an expense for services in the year in which employees render service to the Corporation. An accrual is made for the cost of holiday entitlements earned by employees but not taken before the year- end that employees can carry forward into the next financial year. The accrual is charged to the Surplus or Deficit on the Provision of Services, but then reversed out through the Movement in Reserves Statement so that holiday benefits are charged to revenue in the financial year in which the holiday absence occurs. Termination Benefits Termination benefits are amounts payable as a result of a decision by the Corporation to terminate an officer’s employment before the normal retirement date or an officer’s decision to accept voluntary redundancy and are charged to the relevant service when the Corporation can no longer withdraw the offer of those benefits. Post-Employment Benefits Employees of the Corporation are members of the Local Government Pension Scheme. The Local Government Pension Scheme The Local Government Pension Scheme in respect of the Corporation’s employees is administered by the London Pensions Fund Authority (LPFA) and is accounted for as a defined benefits scheme: • The liabilities of the LPFA pension scheme attributable to the Corporation 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 earnings for current employees. • The discount rate is the annualised yield at the 25-year point on the Merrill Lynch AA-rated corporate bond yield curve which has been chosen to meet the requirements of IAS19 and with consideration of the duration of the Employer’s liabilities. This is consistent with the approach used at the last accounting date. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 22


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    Accounting Policies (continued) • The assets of the LPFA pension fund attributable to the Corporation are included in the Balance Sheet at their fair value as follows: o Quoted securities – current bid price o Unquoted securities – professional estimate o Unitised securities – current bid price o Property – market value The change in the net pensions’ liability is analysed into the following components: • Service cost, comprising: o current service cost – the increase in liabilities, as a result of years of service earned this year allocated in the Comprehensive Income and Expenditure Statement to the services for which the employees worked; o past service cost – the increase in liabilities as a result of a scheme amendment or curtailment whose effect relates to years of service earned in earlier years, debited to the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement as part of Non-Distributed Costs; o any gain or loss on settlement of a defined benefit plan when the settlement occurs; and o interest on the net defined benefit liability, i.e. net interest expense for the Corporation – the change during the period in the net defined benefit liability that arises from the passage of time charged to the Financing and Investment Income and Expenditure line of the Comprehensive Income and Expenditure Statement. This is calculated by applying the discount rate used to measure the defined benefit obligation at the beginning of the period to the net defined benefit liability at the beginning of the period, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. • Re-measurements comprising: o the return on plan assets, excluding amounts included in the interest on the net defined benefit liability, charged to the Pensions Reserve as Other Comprehensive Income and Expenditure; o actuarial gains and losses, changes in the net pensions liability that arise because events have not coincided with the assumptions made at the last actuarial valuation or because the actuaries have Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 23


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    Accounting Policies (continued) updated their assumptions, charged to the Pensions Reserve as Other Comprehensive Income and Expenditure; and o any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability/asset. In relation to retirement benefits, statutory provisions require the General Fund balance to be charged with the amount payable to the pension fund in the year, not the amount calculated according to the relevant accounting standards. In the Movement in Reserves Statement this means that there are appropriations to and from the Pensions 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 pensioners and any such amounts payable but unpaid at the year-end. The negative balance that arises on the Pensions Reserve thereby measures the beneficial impact to the General Fund of being required to account for retirement benefits on the basis of cash flows rather than as benefits are earned by employees. o) Reserves Reserves consist of two elements, usable and unusable. Usable reserves are those that can be applied to fund expenditure. Due to the funding arrangement OPDC does not hold any usable reserves. Unusable reserves cannot be applied to fund expenditure as they are not cash backed. They include the pension reserve and the accumulated absences reserve. p) Trade and other receivables The Corporation received planning application income in 2017/18 and there are no year-end trade receivables relating to this as income is received at the point where a planning application is submitted. The Corporation received GLA grant funding which is recognised as and when the grant is due to be paid to the Corporation. Other income received during the course of the year contributed towards specific pieces of work. q) Trade and other creditors Trade and other creditors are recognised at fair value and are the agreed amounts owed to suppliers. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 24


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    Notes to the Statement of Accounts 1. Expenditure and Funding Analysis The objective of the Expenditure and Funding Analysis is to demonstrate to the user of the accounts how the funding available to the Corporation for the year has been used in providing services, in comparison with those resources consumed or earned in accordance with generally accepted accounting practices. The Expenditure and Funding Analysis also shows how this expenditure is allocated for decision making purposes. Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement. Adjustments between Net Expenditure Chargeable Funding and Accounting Net Expenditure Chargeable 31 March 2018 to the General Fund Balances Basis to the General Fund Balances £000 £000 £000 Corporation 372 0 372 Net cost of services 372 0 372 Other Income and expenditure (373) 383 10 Surplus or deficit (1) 383 382 Opening General Fund Balance at 31 March 2017 0 Less Deficit on General Fund Balance in Year (1) Closing General Fund Balance at 31 March 2018 (1) Adjustments between Net Expenditure Chargeable Funding and Accounting Net Expenditure Chargeable 31 March 2017 to the General Fund Balances Basis to the General Fund Balances £000 £000 £000 Corporation 52 0 52 Net cost of services 52 0 52 Other Income and expenditure (52) 58 6 Surplus or deficit 0 58 58 Opening General Fund Balance at 31 March 2016 0 Less Deficit on General Fund Balance in Year 0 Closing General Fund Balance at 31 March 2017 0 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 25


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    Note 1a to the EFA – Adjustment between funding and accounting basis Accumulated Absences 31 March 2018 IAS 19 Pension Adjustment Adjustment Total Adjustments £000 £000 £000 Corporation 0 0 0 Net cost of services 0 0 0 Other Income and expenditure from the funding analysis 363 19 382 Difference between General Fund (surplus) or deficit and CIES (surplus) or deficit 363 19 382 Accumulated Absences 31 March 2017 IAS 19 Pension Adjustment Adjustment Total Adjustments £000 £000 £000 Corporation 0 0 0 Net cost of services 0 0 0 Other Income and expenditure from the funding analysis 56 2 58 Difference between General Fund (surplus) or deficit and CIES (surplus) or deficit 56 2 58 The adjustment between the accounting basis and funding under regulation is the same note as that for the Movement in Reserves Statement (MIRS), but the signage is opposite to the MIRS. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 26


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    2. Gross Income and Expenditure Summary Gross expenditure recognised in the Comprehensive Income and Expenditure Statement comprises: Income 31 March 2018 31 March 2017 £000 £000 GLA Income (7,163) (6,323) Planning Application fees (462) (551) Mayoral CIL Administration (159) 0 Other (10) (48) Total Income (7,794) (6,922) Expenditure 31 March 2018 31 March 2017 £000 £000 Employee benefits expenses 2,624 2,854 Other service expenses 664 627 Consultancy and Professional Fees 4,377 2,927 Support service recharges 501 566 Gross Expenditure 8,166 6,974 Amounts included in the costs of services within the Comprehensive Income and Expenditure Statement but not reported to management within the in-year budget monitoring reports include pension service costs and Corporation Tax. 3. External Audit Fees External audit fees are made up as follows: 31 March 2018 31 March 2017 £000 £000 Fees payable to external auditors with regard to external audit services carried out by the appointed auditor 15 17 Fees payable in respect of other services provided by the appointed auditor over and above external audit services 0 10 As a not for profit company established by the Local Government Association, PSAA made a distribution of surplus funds to principal local government and police bodies in 2017/18, of which the OPDC element was £2,230.00. The distribution was made possible by the transfer of an element of the Audit Commission's retained earnings prior to its closure in March 2015 and by PSAA continuing to generate surplus funds and make further efficiencies since its establishment. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 27


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    4. Remuneration The remuneration of senior employees, defined as those who are members of the Executive Management Team, was as set out below; 2017/18 Name of Post Salary (including Compensation for Employer Pension Total Remuneration Holder fees and loss of office Contributions including pension OPDC Staff allowances) contributions £ £ £ £ Chief Executive Officer Victoria Hills 112,383.90 - 13,486.07 125,869.97 Director of Planning Michael Mulhern 84,267.15 - 10,112.06 94,379.21 i 52,852.29 - 6,342.28 59,194.57 Head of Communications and Engagement Patora Dyrma Chief Operating Officer ii Douglas Wilson 37,488.61 - 4,498.64 41,987.25 Commercial Director iii Benjamin O'Neill 9,881.40 - 1,185.77 11,067.17 i - This appointment is effective from 03/07/2017. Annual Equivalent Salary is £70,239.00 ii - This appointment is effective from 04/12/2017. Annual equivalent Salary is £112,385.00 iii - This appointment is effective from 19/02/2018. Annual equivalent Salary is £90,099.00 2016/17 Name of Post Salary (including Compensation for Employer Pension Total Remuneration Holder fees and loss of office Contributions including pension OPDC Staff allowances) contributions £ £ £ £ Chief Executive Officer Victoria Hills 119,094.68 - 13,091.36 132,186.04 Director of Planning Michael Mulhern 78,399.83 - 9,407.98 87,807.81 Director of Development Paula Hirst 79,731.59 50,436.00 9,567.79 139,735.38 The Code requires disclosure of remuneration for the Corporation’s employees whose total remuneration in the year was £50,000 or more, grouped in rising bands of £5,000. In line with the Code, entries are banded according to actual payments in the year (excluding employer’s pension contributions), rather than annual equivalent salaries. The table below discloses permanent Officers on the Corporation’s payroll, but excludes the Executive Management Team, seconded staff, agency staff and contractors. 2017/18 2016/17 Remuneration Band (£) Number of Number of Employees Employees £ 50,000 - 54,999 4 3 55,000 - 59,999 2 2 65,000 - 69,999 2 - 8 5 Termination Benefits The code requires the separate disclosure of the number and cost of compulsory and voluntary severance termination packages agreed during the year. One member left on the Corporation’s voluntary severance terms, the total cost of which was £3,868. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 28


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    4. Remuneration (continued) OPDC is committed to supporting and harnessing a diverse and modern workforce and employs approximately 46 staff in full-time and part-time positions, including apprentices and secondees from across the GLA Group. Members’ remuneration 2017/18 Salary (inc fees and Employer's Total Name Title allowances) Expenses NI remuneration £000 £000 £000 £000 Gordon Adams Planning Committee Member 1 - - 1 i Amer Hussain Agha Planning Committee Member 1 - - 1 Julian Bell Board Member 14 - 1 15 Board and Appointments & Muhammed Asqhar Butt Remuneration Committee Member 14 - 1 15 Stephen Cowan Board Member 14 - 1 15 Rahul Gokhale Board Member 14 - 1 15 Wesley Harcourt Planning Committee Member 2 - - 2 Colin Haylock Planning Committee Member 2 1 - 3 Board Member and Investment ii William Anthony Hill Committee Member 5 - 0 5 Board and Planning Committee William McKee Member 20 1 2 22 iii Sarah-Louise Marquis Planning Committee Member - - - - Board and Appointments & Jordan Nash iv Remuneration Committee Member - Chairman and Investment Elizabeth Peace Committee Member 24 0 2 27 Natalia Perez Planning Committee Member 2 - - 2 Board and Audit Committee Victoria Quinlan v Member Stuart Robinson Planning Committee Member 2 - - 2 Board, Audit Committee and Appointments & Remuneration Eric Sorensen Committee Member 16 - 1 17 Amanda Souter Board Member 14 - 1 15 Hitesh Tailor Planning Committee Member 2 - - 2 i - This appointment is effective from 24/08/2017 therefore does not reflect a full year's salary ii - This appointment is effective from 30/11/2017 therefore does not reflect a full year's salary iii - This appointment ceased on 17/05/2017 therefore does not reflect a full year's salary iv - This appointment ceased on 09/07/2017 therefore does not reflect a full year's salary v - This appointment is effective from 30/11/2017 and is voluntarily unremunerated Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 29


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    4. Remuneration (continued) 2016/17 Salary (inc fees and Employer's Total Name Title allowances) Expenses NI remuneration £000 £000 £000 £000 Gordon Adams Planning Committee Member 2 - - 2 Julian Bell Board Member 14 - 3 17 Board and Appointments & Muhammed Asqhar Butt Remuneration Committee Member 14 - 3 17 Stephen Cowan Board Member 14 - 1 15 Rahul Gokhale Board Member 14 - 1 15 Wesley Harcourt Planning Committee Member 2 - - 2 Colin Haylock Planning Committee Member 2 1 - 3 Board and Planning Committee William McKee Member 18 1 1 20 Sarah-Louise Marquis Planning Committee Member 2 - - 2 Board and Appointments & Jordan Nash Remuneration Committee Member 16 - 1 17 Natalia Perez* Planning Committee Member - - - - Stuart Robinson Planning Committee Member 2 - - 2 Board, Audit Committee and Appointments & Remuneration Eric Sorensen Committee Member 20 - 2 22 Amanda Souter Board Member 14 - 1 15 Hitesh Tailor Planning Committee Member 2 - - 2 *This appointment is effective from 27/02/2017 Members of the OPDC Board, Committees or its subordinate bodies who are the Mayor or a member of the London Assembly, a member of staff of the GLA, or an employee of another statutory or public body may claim expenses but shall not be eligible to claim the Basic Board Allowance or any Committee Allowance. 2016/17 – Members’ Backdated pay Salary (inc Total fees and Expenses Employer's remuneratio Name Title allowances) NI n including £000 £000 £000 Julian Bell Board Member 14 - 1 15 Muhammed Asqhar Butt Board Member 14 - 1 15 Wesley Harcourt Planning Committee Member 2 - - 2 Sarah-Louise Marquis Planning Committee Member 2 - - 2 Stuart Robinson Planning Committee Member 2 - - 2 Eric Sorensen Board Member 4 - 4 Hitesh Tailor Planning Committee Member 2 - - 2 The backdated pay relates to allowances for membership in 2015/16 but claimed in 2016/17 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 30


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    5. Financing and investment expenditure 31 March 2018 31 March 2017 £000 £000 Net interest on the net defined benefit liability 13 9 Other bank and finance charges/credits (2) (1) Total 11 7 6. Grant Income Capital Grants Receipts in Advance - Long Term Liabilities 31 March 2018 31 March 2017 £000 £000 S106 Grant (396) 0 Total (396) 0 Grants Credited to Services 31 March 2018 31 March 2017 £000 £000 Functional Bodies Contibutions (7,163) (6,266) Other Government Grants (5) 0 Total (7,168) (6,266) 7. Corporation tax a) Corporation tax The corporation tax credit to the Income and Expenditure account for the year to 31 March 2018 includes a prior year credit adjustment of £1,500 which relates to an increased amount of corporation tax recoverable for the year to 31 March 2016 due to the carry back of revised losses of tax year to 31 March 2017. 31 March 2018 31 March 2017 £ 000 £ 000 Net deficit on provision of services 382 60 Corporation Tax at 19% * (73) (12) Effect of: Disallowable items 0 2 Pension scheme adjustments 74 8 Prior year adjustments (2) 0 Deferred tax not provided on fixed asset timing differences 0 0 Corporation Tax (1) (2) * Year to 31 March 2017: 20% Provision to meet the Corporation’s corporation tax liability has been made at 19%. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 31


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    7. Corporation tax (continued) b) Deferred tax The Corporation had potential deferred tax assets as shown below. No deferred tax assets have been recognised in view of the uncertainty of future taxable profits. 31 March 2018 31 March 2017 £ 000 £ 000 Assets due to: Pension scheme liabilities 119 89 Timing differences on fixed assets 4 6 These potential deferred tax assets have been calculated using the tax rate at which the asset is expected to reverse which is 17% for the year to 31 March 2018 (17% for the year to 31 March 2017). 8. Short term debtors 31 March 2018 31 March 2017 £000 £000 Debtor (GLA) 4,198 1,096 Prepaid Expenses 0 11 Other functional bodies 0 13 Taxation Debtor (HMRC) 588 326 Other entities and individuals 1,326 8 Total 6,112 1,454 The Corporation has entered into a grant agreement with the Greater London Authority to finance the Corporation’s expenditure. 9. Current liabilities 31 March 2018 31 March 2017 Current liabilities £000 £000 Corporation Tax creditor (HMRC) (1) (47) Local Authorities & Functional Bodies (3,235) (1,487) Other entities and individuals (2,197) (8) Total (5,433) (1,541) 10. Pensions The Corporation offers retirement benefits as part of the terms and conditions of employment to its employees. Employees of the Corporation are members of the Local Government Pension Scheme (LGPS). Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 32


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    10. Pensions (continued) Local Government Pension Scheme The Corporation provides the opportunity for its employees to participate in the Local Government Pension Scheme. The LGPS is administered by the London Pensions Fund Authority (LPFA) and is a defined benefit statutory scheme where the scheme rules define the benefits independently of the contributions payable and the benefits are not directly related to the investments of the scheme. The LGPS is triennially valued in accordance with the provisions of the Local Government Pension Scheme Regulations (2013). The fund's actuaries, Barnett Waddingham, carried out a full triennial valuation as at 31 March 2016. Employer’s and employees’ contributions to the Scheme were determined by the actuary following this valuation and the value of the liabilities as at this date has been rolled forward. Under pension regulations, contribution rates are set to meet 100% of the overall liabilities of the Fund. The primary rate of contribution as defined by Regulation 62(5) for each employer for the period 1 April 2017 to 31 March 2020 is employer’s contribution rate for 2017/18 was 12%. Members pay contributions at rates correlating to pensionable salary bands. A surplus or deficit on the account would lead to an adjustment to the contribution rates, which are reviewed every three years. Principal assumptions used by the actuary 31 March 2018 31 March 2017 Life expectancy from age 65 Years Years Years Retiring today Males 22.5 22.4 Females 24.7 24.6 Retiring in 20 years Males 24.8 24.7 Females 26.9 26.8 Financial assumptions 31 March 2018 31 March 2017 % per annum % per annum Salary increases 3.8 4.2 Pension increases 2.3 2.7 Discount rate 2.6 2.8 CPI is assumed to be 1.0% p.a. below RPI i.e. 2.25% p.a (2017: 0.9% p.a. below RPI i.e. 2.7% p.a) The assumptions used to measure events in the accounting period from 1 April 2017 to 31 March 2018 are set with reference to market conditions at 31 March 2018. The estimate of the duration of the employer’s liabilities is 41 years. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 33


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    10. Pensions (continued) Amounts charged to the Comprehensive Income and Expenditure Statement 31 March 2018 31 March 2017 £000 £000 Service cost 498 170 Administration expenses 1 0 Total included in net cost of services 499 170 Net Interest on the defined liability 13 9 Total included in deficit on provision of services before tax 13 9 Remeasurement of the net defined benefit (asset) / liability 191 164 Total 703 343 Reconciliation of present value of the defined benefit obligation 31 March 2018 31 March 2017 £000 £000 Opening defined benefit obligation (956) (681) Current service cost (498) (170) Interest cost (32) (28) Change in financial assumptions 171 (365) Change in demographic assumptions 0 7 Experience gain/(loss) on defined benefit obligation 0 368 Liabilities extinguished/(assumed) on settlements 0 0 Estimated benefits paid net of transfers in (234) 0 Contribution by Scheme participants (109) (87) Closing defined benefit obligation (1,658) (956) Reconciliation of fair value of Fund assets 31 March 2018 31 March 2017 £000 £000 Opening fair value of Fund Assets 430 375 Interest on assets 19 19 Return on assets less interest 20 78 Other actuarial gains/(losses) 0 (252) Administration expenses (1) 0 Contributions by employer including unfunded 149 123 Contribution by Scheme participants 109 87 Estimated benefits paid plus unfunded net of transfers in 234 0 Settlement prices received 0 0 Closing Fair Value of Fund assets 960 430 The total return on the fund assets for the year to 31 March 2018 is £39,000. The amount included in the Balance Sheet arising from the Corporation’s obligation in respect of its defined benefit plans is as follows: 31 March 2018 31 March 2017 Present value of the defined benefit obligation (1,658) (956) Fair Value of Fund assets 960 430 Net liability arising from defined benefit obligation (698) (526) Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 34


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    10. Pensions (continued) Local Government Pension Scheme assets comprised: 31 March 2018 31 March 2017 Employer asset share - bid value £000 % £000 % Equities 587 61 254 59 LDI/Cashflow matching 0 0 0 0 Target Return Portfolio 215 22 91 21 Infrastructure 42 4 23 6 Commodities 0 0 0 0 Property 69 7 22 5 Cash 47 6 40 9 Total 960 100 430 100 Sensitivity analysis The following table sets out the impact of a small change in the discount rates on the defined benefit obligation and projected service cost along with a +/- year age rating adjustment to the mortality assumption. £000 £000 £000 Adjustment to discount rate 0.1% 0.0% -0.1% Present value of total obligation 1593 1658 1725 Projected service cost 423 440 458 Adjustment to long term salary increase 0.1% 0.0% -0.1% Present value of total obligation 1662 1658 1654 Projected service cost 440 440 440 Adjustment to pension increases and deferred revaluation 0.1% 0.0% -0.1% Present value of total obligation 1722 1658 1597 Projected service cost 458 440 423 Adjustment to life expectancy assumptions +1 Year None -1 Year Present value of total obligation 1711 1658 1607 Projected service cost 454 440 426 11. Cash flow note Adjustments to net deficit for non-cash movements 31 March 2018 31 March 2017 £000 £000 Increase/(decrease) in creditors 3,891 (1,058) (Increase)/decrease in debtors (4,658) (24) Movement in pension liability 363 56 Adjustment to net deficit for non-cash movement (404) (1,026) The cash flows from operating activities include nil interest received for the year ending 31 March 2018. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 35


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    12. Reserves Usable reserves At the end of the financial year, the Corporation had no usable reserves. Unusable reserves 31 March 2018 31 March 2017 £000 £000 Pension Reserve 698 526 Accumulated Absences Account 36 17 Balance 31 March 734 543 The Pensions Reserve absorbs the timing differences arising from the different arrangements for accounting for post-employment benefits and for funding benefits in accordance with statutory provisions. The Corporation accounts for post-employment benefits, in the Comprehensive Income and Expenditure Statement, as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs. However, statutory arrangements require benefits earned to be financed as the Corporation makes employee contributions to pension funds or eventually pays any pension for which it is directly responsible. The debit balance on the Pensions Reserve therefore shows a shortfall in the benefits earned by past and current employees and the resources that the Corporation has set aside to meet them. The statutory arrangements will ensure that funding will have been set aside by the time the benefits come to be paid. The Accumulated Absences Account absorbs the differences that would otherwise arise on the General Fund balance from accruing for compensated absences earned but not taken in the year, e.g. annual leave entitlement carried forward at 31 March. Statutory arrangements require that the impact on the General Fund balance is neutralised by transfers to or from the account. As there was no settlement or cancellation of accrual made at the end of the preceding year, amounts accrued in this year are the same as the amount by which officer remuneration is charged to the Comprehensive Income and Expenditure Statement on an accrual basis. A further breakdown within pension reserves is shown below. 31 March 2018 31 March 2017 £000 £000 Balance 1 April 526 306 Remeasurements of the net defined benefit (liability)/asset -191 164 Reversal of items relating to retirement benefits debited or credited to the Surplus or Deficit on the Provision of Services in the Comprehensive 512 179 Income and Expenditure Statement Employer's pensions contributions and direct payments to pensioners -149 (123) payable in the year Balance 31 March 698 526 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 36


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    13. Related party transactions The Corporation is required to disclose material transactions with related parties – bodies or individuals that have the potential to control or influence the Corporation or to be controlled or influenced by the Corporation. Disclosure of these transactions allows readers to assess the extent to which the Corporation might have been constrained in its ability to operate independently, or might have secured the ability to limit another party’s ability to bargain freely with the Corporation. The related parties to the Corporation are: • central government; • other public bodies (including the Greater London Authority and other local authorities); and • its Members and Executive Management Team. Central government and other public bodies – Income and Expenditure All relationships were as delivery partners to the Corporation and significant transactions for the years ended 31 March 2018 were as follows: Members and Executive Management Team – Income and Expenditure Members of the Corporation have direct control over the Corporation’s financial and operating policies. The total of members’ allowances paid in 2017/18 is shown in note 4. Members and the Executive Management Team were required to complete a declaration regarding any related party transactions with the Corporation, which are subject to external audit. There were no disclosures by Members or the Executive Management Team in 2017/18 under the related party transactions declaration. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 37


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    Annual Governance Statement Local authorities are statutorily required to review their governance arrangements at least once a year. Preparation and publication of an Annual Governance Statement in accordance with the CIPFA/SoLACE Delivering Good Governance in Local Government Framework (2016) (the Framework) fulfils this requirement. The Framework requires local authorities to be responsible for ensuring that their business is conducted in accordance with all relevant laws and regulations, public money is safeguarded and properly accounted for and that resources are used economically, efficiently and effectively to achieve agreed priorities which benefit local people. The Framework also expects that local authorities will put in place proper arrangements for the governance of their affairs which facilitate the effective exercise of functions and ensure that the responsibilities set out above are being met. The Corporation has adopted the requirements of the CIPFA/SoLACE Framework Delivering Good Governance in Local Government Framework 2016 and a number of specific strategies and processes for strengthening corporate governance, putting in place effective internal arrangements that will provide assurance over the adequacy of the Corporation’s governance and effective systems of internal controls to meet its objectives. Scope of responsibility The Old Oak and Park Royal Development Corporation is a Mayoral Development Corporation, established on 1 April 2015, under the provisions of the Localism Act 2011. The Development Corporation is a functional body of the GLA, which operates within the overall legislative and governance framework provided by the GLA Acts 1999 and 2007; the Mayor of London appoints members to its Board and allocates its budgets. The Development Corporation became planning authority within its Mayoral development area on 1 April 2015. The Mayor is also able to direct the Development Corporation in the exercise of its functions, and to delegate functions to it. The Development Corporation 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. In discharging this overall responsibility, the Development Corporation is responsible for putting in place proper arrangements for the governance of its affairs, facilitating the effective exercise of its functions and including arrangements for the management of risk. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 38


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    The purpose of the governance framework The governance framework describes the systems and processes by which the Development Corporation is directed and controlled, how it is accountable to its stakeholders and communities, and how it monitors the achievement of its strategic objectives and value for money. The system of internal control is a significant part of this 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 a continuous process designed to identify and prioritise risks, to evaluate the likelihood and potential impact of those risks being realised, and to mitigate and manage them efficiently, effectively and economically. The governance framework has been in place at the Development Corporation for the year ended 31 March 2018 and up to the date of approval of the Statement of Accounts. The governance framework Board and committees The Development Corporation’s Board and committees operate within the governance and openness framework prescribed by the Local Government Act 1972. During the year ended 31 March 2018 the Development Corporation’s committee structure was as follows: • Audit Committee To ensure the efficient and effective discharge of the Development Corporation’s functions, through the proper administration of the Development Corporation’s financial affairs including but not limited to the maintenance, preparation and audit of accounts, internal controls and risk management and internal and external audit. • Appointments and Remuneration Committee To take decisions on behalf of the Board on appointments, remuneration and staffing structures and to advise the Board on organisational design and senior level appointments. • Investment Committee To make recommendations and decisions in relation to financial matters and investments in land, infrastructure and property on behalf of the Board. • Planning Committee To enable transparent, efficient and effective discharge of the Development Corporation’s functions to determine planning applications and to respond to consultation on applications on which the Development Corporation is a consultee. Committee members must be members of the Development Corporation’s Board, except where the Mayor of London has approved the appointment of additional members. He has done so in relation to the Planning Committee, which is comprised Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 39


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    of one Board member, four elected members from the boroughs, and three independent members appointed following advertisement. Attendance at Board and Committee meetings by members is detailed in the table below. Attendance at OPDC Board and Committee Meetings 2017-2018 Meetings of the Board Meetings of the Audit Meetings of the Planning Meetings of the Appointments & Members attended Committee attended Committee attended Remuneration Committee attended Total number of meetings in 7 2 7 2 the period Elizabeth Peace (Chair) 7 - - - Gordan Adams - - 6 - Cllr. Amer Agha - - 2 - Cllr. Julian Bell 6 - - - David Biggs 3 - - - Cllr. Muhammed Butt 6 - - 2 Cllr. Stephen Cowan 4 - - - Rahul Gokhale 6 - - - Cllr. Wesley Harcourt - - 6 - Colin Haylock - - 7 - William Hill 2 - - - William McKee CBE 6 2 6 - Cllr. Sarah-Louise Marquis - - 1 - Professor Jordan Nash 2 - - 1 Cllr. Natalia Perez - - 5 - Jules Pipe 3 - - - Victoria Quinlan 1 1 - - Staurt Robinson - - 7 - Eric Sorensen 7 2 - 2 Amanda Souter 6 - - - Cllr. Hitesh Tailor - - 7 - Vision and performance The Development Corporation’s vision, purpose and strategic objectives are set out in its Strategic Plan, which was published in May 2016. The Strategic Plan sets priorities and performance indicators. Performance is reported through quarterly reports to the Board and quarterly reports to the GLA on financial and service performance. Financial performance is also reported through quarterly management accounts. Standing orders, delegations and code of conduct Key governance documents for the Development Corporation comprise: • Standing Orders, which set out arrangements for the conduct of meetings, recording of decisions and managing conflicts of interest, and also include the Members’ Code of Conduct and Gifts and Hospitality Code. • Scheme of Delegation, which sets out arrangements for delegation of decisions to committees and officers. • Scheme of Planning Delegations, which sets out how the Development Corporation will discharge some of its town and country planning functions and responsibilities through delegation to the Planning Committee and Planning Officers. • Planning Code of Conduct, which sets out the approach of Planning Officers and the Planning Committee Members to planning decision-making. • Financial Regulations, which set out the framework for managing the Development Corporation’s financial affairs. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 40


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    • Contracts and Funding Code, which sets out policies in relation to the proper procurement of goods, services, supplies and works. These documents have all been in place throughout 2017/18. All the above documents are available on the Development Corporation’s website. A staff code of conduct (and other people management polices) are published on the Development Corporation’s intranet site, and issued to staff as part of their induction process. The governance arrangements will continue to be reviewed and updated to ensure that the organisation’s structures and decision-making processes remain appropriate to the Development Corporation’s changing role. Risk management, fraud and corruption The Development Corporation’s risk management processes are based on embedding risk management in all aspects of its work programme and ensuring that programme- wide and project risks are identified, quantified, mitigated and monitored effectively. The primary objective is to have effective strategies in place to control risks through reducing the likelihood of a risk arising, reducing the likely impact of a risk should it arise, or – where possible – eliminating the risk. Risks and issues are managed at various different levels across the organisation: risks and issues within a project are managed by project managers; risks and issues within a directorate are managed by the relevant executive director; and corporate risks are owned by the Senior Management Team. Risks are managed through the Development Corporation’s programme and project management reporting system. Corporate-level risks and issues are identified through analysing the risk register and considering any other risks and issues impacting on the Development Corporation. These are agreed by the Senior Management Team and the risks are summarised in the Development Corporation’s Strategic Plan. Updates on corporate risks and issues are reported to the Board and to Audit Committee. The Development Corporation has an Anti-Fraud, Bribery and Corruption Policy and a Whistle Blowing Policy. Measures include processes to prevent and detect fraud. Preventative controls include the Development Corporation’s policies and procedures, including senior management authorisation of new suppliers, separation of functions for raising and authorising purchase orders, and other decision-making, procurement and accounting processes. Key detective processes and controls are the systems for authorisation of accounts payable and receivable, general ledger journals and payroll allied to senior management scrutiny of the quarterly management accounts. The Development Corporation undertakes quantified risk assessments on its corporate level risks and on major project risks to inform contingency management. It Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 41


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    is also in the process of developing a risk appetite statement and held a training programme for all staff on project risk management. Management of change Financial and legal controls compliance The Development Corporation’s financial management arrangements conform to the governance requirements of the Chartered Institute of Public Finance and Accountancy (CIPFA) statement on the Role of the Chief Financial Officer in Local Government: • The Chief Finance Officer of the Development Corporation (designated in accordance with Section 127 of the Greater London Authority Act 1999) is Doug Wilson, a member of the Institute of Chartered Accountants of Scotland (ICAS). The Chief Finance Officer sits on the Senior Management Team and is able to attend all Board and committee meetings. He prepares the budget and corporate plan, including leading internal review processes, and is party to all material business decisions. Financial advice is included on all Board papers and sign-off is required above the thresholds specified in the Scheme of Delegation. • The Chief Finance Officer is also responsible for financial controls, for corporate programme management, for performance measurement and for supporting the Audit Committee’s work (including internal audit). • The Chief Finance Officer is supported by a team of finance and performance professionals. The Development Corporation ensures compliance with relevant laws and regulations through shared service arrangements with Transport for London for legal and procurement services. These shared service arrangements came into effect on 1 April 2015. Legal advice is required for all significant decisions, whether taken by the Board or under delegated authority, and is recorded in Board and other decision papers. All contracts entered into by the Development Corporation must also be approved by the legal team for signing. Compliance with other legislation (e.g. employment or procurement) is ensured by the working policies, procedures and practices of the relevant Development Corporation team. Policies are approved by the Senior Management Team following consultation with employees and are available for staff on the Development Corporation’s intranet. Audit Committee and internal audit The Audit Committee helps to raise the profile of internal control and risk management within the Development Corporation through considering a standing item on internal control and risk management at each meeting and reporting back to the Development Corporation’s Board. It raises the profile of financial reporting issues within the organisation through a report at every meeting from the Executive Director of Finance and Corporate Services, which reports on key activities including those relating to finance and governance, and reporting back to the Development Corporation’s Board. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 42


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    The Audit Committee also helps to raise the profile of internal control, risk management and financial reporting by requesting information on individual areas of concern and asking the internal auditors to review particular areas of risk. Audit Committee meetings are held in public and the papers are made available on the Development Corporation’s website which helps to enhance public trust in the Corporation’s financial governance. The Audit Committee is made up of members of the Development Corporation’s Board. It includes members with both public and private sector experience with expertise in areas including finance, audit, law and governance. The Mayor’s Office for Policing and Crime (MOPAC) were appointed by the Board as the Development Corporation’s internal auditors, and their work is reported to, and monitored and reviewed by, the Audit Committee. MOPAC assist in the promotion of good governance through implementation of the Internal Audit Plan, as approved by the Audit Committee. The Internal Audit Plan includes individual audits on activities identified as areas of risk. When complete the reviews are reported to the executive and the Audit Committee. The Development Corporation’s progress against agreed internal audit recommendations is monitored regularly and reported to the Audit Committee. The internal auditors provide an annual report summarising their findings for the year, attend the OPDC’s Audit Committee and have regular meetings with the External Auditors. The following reviews from the audit plan were finalised, receiving adequate audit assurance, with the audits of Contract Management and Planning Powers due for finalisation shortly; • Risk Management Framework • Payroll Audit • Programme and Project Management Framework The Committee also approved the proposed work programme included within the 2018/19 Internal Audit Strategy. Greater London Authority (GLA) Corporate Governance The Development Corporation is a functional body of the GLA and complies with its annual budgeting process, engages with the London Assembly and its committees as required and also fulfils the requirements of any Mayoral directions given. There is also an on-going dialogue with the Mayor's office to ensure that the activities of the Development Corporation are aligned with the Mayor's general policy framework. The Development Corporation also complies with the requirements of the GLA Group Corporate Governance Framework Agreement, to ensure that common standards and procedures, in relation to governance and transparency are in place and appropriately adhered to. In adopting this framework, OPDC agreed to carry a firm commitment to Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 43


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    being open, transparent and accountable for the Corporation’s actions and behaviour. This agreement thereby has in place a Code to set down the requirements for, and to govern the activities of, elected members and, particularly in OPDC’s case, its Board and Committee members. The Code also sets the requirement to govern the activities of its staff. The Code is to be regularly reviewed by the GLA’s Standards Committee and the organisation, therefore has robust systems in place to manage alleged breaches of that Code. Whistleblowing and complaints The Development Corporation’s Whistleblowing Policy is on its website, available for all staff Meeting development needs of members and senior staff OPDC is committed to supporting and harnessing a diverse and modern workforce and employs approximately 46 staff in full-time and part-time positions, including apprentices, secondees and shared service resources from across the GLA Group, with a workforce generally reflecting the diversity of the community we serve. The development of the skills and capacity of staff, managers and teams to perform effectively and respond to the ongoing organisational change is incorporated within the Corporation’s performance management framework for staff. A range of flexible and structured development options to develop staff competencies and careers are available, as well as opportunities for team and management development. Board members are offered tailored induction meetings, and additional briefing sessions were held throughout the year. Staff training has addressed corporate governance and approval issues through presentations at team meetings across the organisation. Community engagement and partnership The Development Corporation’s Community and Business Engagement Teams manage a programme of active engagement with local people, through participation in relevant local community forums. During the course of the financial year, the Development Corporation has progressed the development of the Local Plan and the Community Infrastructure Levy (CIL). The Development Corporation has partnership arrangements in place with a number of bodies, including local authorities and landowners and other stakeholders. Governance review The Development Corporation’s governance arrangements were reviewed during 2016/17 as part of the review of the strategic direction and work programme of the OPDC, commissioned by the Mayor in June 2016. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 44


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    The resulting report contained a range of recommendations. Specifically, it focussed on the implications of the current Memorandum of Understanding for the transfer of publicly owned land to OPDC, which was originally agreed between the Corporation and the Secretary of State for Transport during the previous administration. It also reviewed the current OPDC Governance structure; advising changes to the composition of both the Board and Committees. In response to this report, OPDC has developed an implementation plan which provides details on how the Corporation proposes to implement the recommendations, whilst also providing dates for completion. OPDC provided regular updates to each Board meeting from July 2017 onwards, reporting on the progress made and the outlook on delivering recommendations that are outstanding. At the January 2018 Board Meeting, it was reported that of the 27 recommendations, 5 were complete and 12 related to on-going activities (therefore were treated as business as usual). The Board agreed that a report monitoring the plan was no longer required going forward. The full implementation plan has been published, with the specific Governance issues as follows: Issue Response That the OPDC, working with the Wormwood Scrubs is the largest open GLA, investigates the feasibility and space within the OPDC boundary. It is managed by the Wormwood Scrubs implications of redrawing the Charitable Trust, and protected by the Corporation’s boundary so as to Wormwood Scrubs Act 1879, the exclude Wormwood Scrubs. Commons Act 2006 and as Metropolitan Open Land in the London Plan, which affords the Scrubs the same level of protection as Metropolitan Green Belt. This protection will continue. The vision for Wormwood Scrubs contained in the draft Local Plan is that it will continue to be a much-cherished public open space and important ecological asset. New sensitive connections and carefully considered improvements will bring Old Oak and White City together and make the Scrubs more accessible to all Londoners. These connections will be agreed by the Wormwood Scrubs Charitable Trust and in discussion with the London Borough of Hammersmith and Fulham and the local community. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 45


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    Officers are considering the implications of redrawing OPDC’s boundary to remove Wormwood Scrubs will be discuss this with OPDC Board and the Mayor in due course. Should the decision be to proceed with a public consultation on this proposal, it would be advisable for this not be able to take place until after OPDC’s Local Plan is adopted. A new Chair must be appointed as a Elizabeth Peace was appointed as matter of urgency to signal how Chairman and confirmed by the London serious the Mayor is about bringing Assembly in April 2017. forward appropriate development in the area. This Chair must have close working relationships with City Hall, share the Mayor’s vision and be able to champion the asks of Government outlined above The DCLG, DfT, Network Rail and The HS2 Board Member resigned in HS2 public officials should be asked November 2016 and the DfT and DCLG Board members resigned in April 2017. It is to step down from the Board and recommended that all three organisations offered observer status instead. attend as observers instead. OPDC officers will discuss options for Network Rail’s The resulting vacancies on the Board membership of the Board with the Chair. should be used to recruit experts with Two new Board members were be recruited property and commercial knowledge with expertise in commercial and property and experience – and preferably local issues (as per recommendation 5d). Board knowledge members are Mayoral appointments, and the Board will need to ratify the appointment of observers to the Board. Contracts for a number of the independent members on OPDC’s Board run until September 2018. OPDC will shortly be commencing an open and transparent recruitment exercise. Support for business and community The Mayor’s consolidated budget for Board members must be provided to 2017/18 contained a contingency fund to, amongst other issues, allow OPDC to fully enable them to properly represent implement the recommendations contained their constituent groups. Other in the review. regular forums outside the Board and Planning Committee should be It has now been agreed with both the developed to allow the voice of Community and Business Board members that a dedicated officer will be appointed to support them with their workload and Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 46


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    business and the community to be priorities and officers are working to heard and shape decision making. progress these appointments. The Development Corporation will address these and other issues that arise, in order to enhance its governance arrangements, and will keep these under review to ensure fitness for function. The Board and Committees Board During the year, the Board was comprised of the following Members and Observers: Members • Councillor Julian Bell – Leader of Ealing Council • Councillor Muhammed Butt – Leader of Brent Council • Councillor Stephen Cowan – Leader of Hammersmith & Fulham Council • Rahul Gokhale – Chair, Park Royal Business Group • William Hill – Chair, Chairman at Ediston Property Investment Company plc and former Head of Property at Schroders plc • William McKee – Chair, Outer London Commission • Elizabeth Peace – Chairman and former Chief Executive of the British Property Federation • Victoria Quinlan – Managing Director - Investment Management for Lendlease • Eric Sorensen – Former Chief Executive, London Docklands Development Corporation and the Millennium Commission • Amanda Souter – Chair, Wells Road Residents Association The following Member left during the year; • Professor Jordan Nash – Imperial College London • David Biggs – Managing Director Network Rail Property Observers Representatives from the Greater London Authority, Transport for London, Department for Transport and the London boroughs of Brent, Ealing and Hammersmith & Fulham are observers to the Board. Appointments & Remuneration Committee • Eric Sorensen (Chair) • Councillor Muhammed Butt Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 47


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    Audit Committee • Victoria Quinlan (Chair) • William McKee • Eric Sorensen Investment Committee • Elizabeth Peace (Chair) • Councillor Stephen Cowan • William Hill • Victoria Quinlan Planning Committee • William McKee (Chair) • Gordon Adams – Head of Planning, Battersea Power Station Development Corporation • Councillor Wesley Harcourt – Cabinet Member for Environment, Transport & Residential Services, Hammersmith & Fulham Council • Colin Haylock – Architect-Planner • Councillor Amer Hussain Agha – Lead Member for Schools, Employment and Skills, Brent Council • Stuart Robinson – Chair of UK Planning, CBRE • Councillor Hitesh Tailor – Cabinet Member for Health & Adult Services, Ealing Council • Councillor Natalia Perez The following Member left during the year; • Sarah-Louise Marquis – Chair of Brent Council Planning Committee Doug Wilson CA Chief Finance Officer 31 May 2018 Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 48


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    Glossary of terms Accruals basis The accruals principle is that income is recorded when it is earned rather than when it is received, and expenses are recorded when goods or services are received rather than when the payment is made. Actuarial gains and losses Actuaries assess financial and non-financial information provided by the Corporation to project levels of future pension fund requirements. Changes in actuarial deficits or surpluses can arise leading to a loss or gain because; • events have not coincided with the actuarial assumptions made for the last valuation; and/or • the actuarial assumptions have changed. Balances The balances of the Corporation represent the accumulated surplus of income over expenditure on any of the funds. Carrying amount The balance sheet value recorded of either an asset or a liability. Chartered Institute of Public Finance and Accountancy (CIPFA) CIPFA is the leading professional accountancy body for public services. Creditors Amounts owed by the Corporation for work done, goods received or services rendered, for which payment has not been made at the date of the balance sheet. Current service cost Current service cost is the increase in the present value of a defined benefit pension scheme’s liabilities expected to arise from employee service in the current period, i.e. the ultimate pension benefits ‘earned’ by employees in the current year’s employment. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 49


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    Glossary of terms (continued) Curtailment Curtailments will show the cost of the early payment of pension benefits if any employee has been made redundant in the previous financial year. Debtors These are sums of money due to the Corporation that have not been received at the date of the Balance Sheet. Defined benefit scheme This is a pension or other retirement benefit scheme other than a defined contribution scheme. Usually, the scheme rules define the benefits independently of the contributions payable and the benefits are not directly related to the investments of the scheme. The scheme may be funded or unfunded (including notionally funded). External audit The independent examination of the activities and accounts of local authorities to ensure the accounts have been prepared in accordance with legislative requirements and proper practices and to ensure the Corporation has made proper arrangements to secure value for money in its use of resources. Expenditure This is amounts paid by the Corporation for goods received or services rendered of either a capital or revenue nature. This does not necessarily involve a cash payment since expenditure is deemed to have been incurred once the goods or services have been received even if they have not been paid for. Fair value Fair value is the price at which an asset could be exchanged in an arm’s length transaction, less any grants receivable towards the purchase or use of the asset. Financial regulations These are the written code of procedures approved by the Corporation, intended to provide a framework for proper financial management. Financial regulations usually set out rules on accounting, audit, administrative and budgeting procedures. General fund This is the main revenue fund of the Corporation and includes the net cost of all services financed by Government and other trading income. Old Oak and Park Royal Development Corporation Unaudited Annual Accounts 2017/18 50

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