Financial Report for year ending 31 March 2025

NEW FOREST NATIONAL PARK AUTHORITY

FINANCIAL REPORT - YEAR ENDED 31 MARCH 2025

CHAIR OF THE AUTHORITY: Victoria Mander

CHIEF EXECUTIVE: Alison Barnes

CHIEF FINANCE OFFICER: Nigel Stone, CPFA FCCA

CONTENTS

• Narrative Report — An explanation of the Authority’s financial position and use of resources (Page 2)
• Statement of Responsibilities (Page 7)
• Annual Governance Statement (Page 9)
• Statement of Accounts:
  • Comprehensive Income and Expenditure Statement (Page 21)
  • Expenditure and Funding Analysis (Page 23)
  • Balance Sheet (Page 25)
  • Movement in Reserve Statement (Page 26)
  • Cash Flow Statement (Page 28)
  • Index of Notes to the Financial Statements (Page 29)
  • Notes to the Financial Statements (Page 30)
  • Glossary (Page 67)
  • Independent Auditor’s Report (Page 70)

NARRATIVE REPORT

Introduction

The purpose of this section is to provide a clear and understandable guide to the most significant matters reported in the financial statements.

Financial Statements

The financial statements and their purpose are summarised as follows:

Comprehensive Income and Expenditure Statement (pages 21-22)

This statement discloses the expenditure and income by service for the year ended 31 March 2025. The statement shows the true economic (accounting) cost of providing those services, prior to any statutory amounts required to be charged through the accounts (which are shown in the Expenditure and Funding Analysis and the Movement in Reserves Statement).

Expenditure and Funding Analysis (pages 23-24)

This is not a primary statement, but its analysis shows how annual expenditure is used and funded from resources by the Authority in comparison with those resources consumed or earned by Authorities in accordance with generally accepted accounting practices. It also shows how this expenditure is allocated for decision-making purposes between the Authority’s services. Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement.

Balance Sheet (page 25)

The Balance Sheet discloses the financial position of the Authority as at 31 March 2025. The net assets of the Authority (its assets less liabilities) are matched by reserves held by the Authority.

Movement in Reserves Statement (pages 26-27)

This statement discloses the movement in the year on the different reserves held by the Authority, analysed into ‘usable reserves’ (i.e. those that can be applied to fund expenditure) and ‘unusable reserves’.

Cash Flow Statement (page 28)

The Cash Flow Statement discloses the inflows and outflows of cash arising from the activities of the Authority for the year ended 31 March 2025.

Notes to the Accounts (pages 30-65)

The Notes disclose more detailed information on the figures provided in the Comprehensive Income and Expenditure Statement, Balance Sheet, Movement in Reserves Statement and Cash Flow Statement. Note 1 discloses the accounting policies used by the Authority in compiling the financial statements.

Financial Context

Our core National Park Grant, received from Defra in 2024/25, was part of a single-year settlement totalling £3.50m revenue and £0.25m capital.

The 2025/26 grant has recently been confirmed as another single-year revenue settlement totalling £3.02m – a 9% cut from the previous core £3.25m revenue grant, with up to a further £1.4m available to the Authority in capital funds.

Financial Performance and Year-End Position

The 2024/25 expenditure budget was £6.6m and income was estimated at £6.5m (both figures include £1.9m for externally-funded projects). The budget would be balanced by taking £49,000 from the Earmarked Reserves.

The actual results for the year are shown in the table below and the variances are then explained further in the text below it:

The budget could only estimate the externally-funded partnership projects known when it was set back in March 2024, actual expenditure was lower than budgeted overall on these projects in 2024/25 and additional income received for them. The year-end position therefore required significant transfers to Earmarked (Project) Reserves at year-end.

Capital Funded Expenditure

During 2024/25 the Authority incurred revenue or capital expenditure of £619,000 funded by capital grants, developers’ contributions and the General Fund. Expenditure was incurred as follows:

Financed by:

Key Services / Outcomes

The Authority’s purposes, vision and intended outcomes for residents, visitors and other stakeholders are identified in a range of policy documents. The overarching vision for the management of the Forest is set out in the Partnership Plan 2022 - 2027. The plan was developed and approved in 2022 following extensive community engagement. This is the second such New Forest ‘Partnership Plan’ and has encouraged a wide range of important stakeholders to put down in writing what they will be doing for the Forest during this time, increasing governance and accountability for all.

The Authority’s Business Plan, for the period up to 2027, was finalised last year. The programme will be aligned to the Authority’s purposes and duty (Protect, Enjoy and Prosper) and use the same five core themes as the new Partnership Plan.

Of the twenty-nine Actions/Outcomes in the 2024/25 Authority Work Programme, twenty-four were shown as “green” (fully complete) at year-end, four “amber” (substantially complete) and one as “red” (not complete). Of those shown as amber and red, all have been considered further in the 2025/26 Work Programme. Further details of the work undertaken by the Authority this year can be found in our ‘Annual Review’ which will be published in Summer 2025 and made available on our website.

Use of Resources

The Authority has a very limited number of physical or operational assets (e.g. no car parks, visitor centres, major land holdings etc); so, its greatest asset is its staff. As at 31 March 2025, details of the staffing levels (both ‘core’ and ‘project-specific’) were:

Of the ‘core’ staff, some resource is dedicated to delivering services for other organisations as part of shared service agreements – this equates to approximately 0.5 FTEs.

The staff sickness level for the year was 4.5 days per FTE, well within the national averages of around 5-8 days.

Risks, Borrowing and Contingencies

During 2018/19 the Authority reviewed and revised its risk register to better align it with our corporate priorities; as a result, the risks are now categorised under ‘Protect, Enjoy, Prosper and Achieving Excellence’. There are currently nineteen key risks listed and these are scored by likelihood and impact up to a maximum of 25 points. As at March 2025, six of the risks were in the low category, ten medium-risk and the remaining three in the high-risk category. The risk log is reviewed at every Executive Board meeting and bi-annually by the Resources, Audit and Performance Committee.

The Authority does not currently have any borrowing and there are currently no plans to do so. No contingencies have been identified during the last year and no new provisions have been required.

Pension Scheme Assets and Liabilities

The pension liability is based on an actuarial valuation and represents the benefits that have been accrued by members of the local government pension scheme.

The Authority’s Balance Sheet shows a net pension liability of zero, deriving from assets valued at £18.602m compared to a liability estimated at £15.185m, with an asset ceiling having been applied to the remaining balance. Whilst this has an impact on the net worth of the Authority as recorded in the Balance Sheet, statutory arrangements for funding the scheme mean that the financial position of the Authority remains healthy, and any future deficit on the scheme would be made good by contributions over the working lives of employees.

The net pension liability is unchanged as at 31 March 2025 (compared to a fall of £0.886m the previous year).

Future Funding and Events after 31 March 2025

In the 2015 Comprehensive Spending Review (CSR), funding for National Parks (through the Defra ‘National Parks Grant’) was “protected” and it was later confirmed this included an inflationary increase of 1.7% per year for the four years resulting in a rise up to £3,251,501 by 2019/20. Single year ‘flat cash’ settlements had been provided since 2020/21, with the exception of a one-off payment of £440,000 made to all English National Park Authorities in 2022/23 to aid their financial stability. The 2024/25 grant was confirmed as a single-year settlement totalling £3.75m – the original core £3.25m grant, with an uplift of £0.25m revenue and £0.25m capital funds. The 2025/26 grant was recently confirmed as a single-year settlement totalling £4.42m – the reduced revenue core grant of £3.02m, with an uplift of £1.4m of capital funds.

The Authority is fully aware of its responsibility to firstly continue to use this funding efficiently and effectively and secondly, to explore ways to reduce its overall reliance on the main revenue grant. In this regard, the Authority has recently been particularly successful in attracting external funding to boost that provided by Defra. It has also established National Parks Partnerships LLP and the National Parks Foundation, alongside the other National Parks, to explore funding partnerships at a national level which it is hoped will either generate income directly or help reduce costs (through negotiated deals) for the National Park’s family – the most significant such partnership to date was with Columbia Sportswear, a US-based outdoor footwear and clothing company, announced in 2017.

The Authority will look to primarily invest the new capital grant funds in income-generating and/or revenue-saving assets.

The Authority will also continue to explore ‘shared services’ opportunities either locally or with the other National Parks / Protected Landscapes; the Authority already ‘sells’ some of its Rangers, Archaeology and Communications expertise to other local organisations and at the same time ‘buys’ in some HR, Finance and ICT support.

As the Authority moved into the 2025/26 financial year, it kept its financial position under constant review. Management are fully confident that it is a going concern for the foreseeable future and that we have adequate plans and reserves in place should the financial situation deteriorate again in the future.

There have been no other significant changes to the Authority or its position since 31 March 2025.

Nigel Stone, CPFA FCCA
Chief Finance Officer
4 February 2026

STATEMENT OF RESPONSIBILITIES

1. The Authority’s Responsibilities

The Authority is required to:

• Make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. In this Authority, that officer is the Chief Finance Officer;
• Manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets;
• Approve the Statement of Accounts.

2. The Chief Finance Officer’s Responsibilities

The Chief Finance Officer is responsible for the preparation of the Authority’s Statement of Accounts in accordance with proper practices as set out in the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Local Authority Accounting in the United Kingdom (‘the Code of Practice’).

In preparing the 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 of Practice;
• Kept proper accounting records which were up to date;
• Taken reasonable steps for the prevention and detection of fraud and other irregularities;
• Taken measures to ensure that risk is appropriately managed.

3. The Chief Finance Officer’s Certificate

I certify that the Statement of Accounts for the year ended 31 March 2025 has been prepared in accordance with the Accounts and Audit Regulations 2015 and that it gives a true and fair view of the financial position of the New Forest National Park Authority as at 31 March 2025 and its income and expenditure for that year ended.

Nigel Stone, CPFA FCCA
Chief Finance Officer
4 February 2026

4. Approval of the Accounts by the Authority

I confirm that these accounts were approved and authorised for issue by Members of the Authority at the meeting held on the 29 January 2026.

Victoria Mander
Chair of the Authority
4 February 2026

ANNUAL GOVERNANCE STATEMENT 2024/25

Scope of responsibility

The New Forest National Park Authority is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for and used economically, efficiently and effectively.

The Authority also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.

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

In March 2022, the Authority approved and adopted an updated Local Code of Corporate Governance, which is consistent with the principles of the CIPFA/Solace Framework Delivering Good Governance in Local Government. A review of compliance with the Code is carried out on an annual basis by the Chief Executive, Monitoring Officer and Chief Finance Officer. A copy of the Code is published on the Authority’s website and can be obtained from Corporate Services.

This statement explains how the Authority has complied with the Code and also meets the requirements of the Accounts and Audit Regulations 2015 in relation to the publication of a statement of corporate governance.

The purpose of the governance framework

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

The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives, and can therefore only provide reasonable and not absolute assurance of effectiveness.

The system of internal control is based on an on-going process designed to identify and prioritise the risk to the achievement of the Authority’s aims, objectives and policies, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.

The Governance Framework

The Local Code of Corporate Governance describes the Authority’s governance framework in relation to the seven core principles below and demonstrates how it complies with these:

1. behaving with integrity, demonstrating strong commitment to ethical values and respecting the rule of law
2. ensuring openness and comprehensive stakeholder engagement
3. defining outcomes in terms of sustainable economic, social and environmental benefits
4. determining the interventions necessary to optimise the achievement of the intended outcomes
5. developing the Authority’s capacity, including the capability of its leadership and individuals within it
6. managing risks and performance through robust internal controls and strong public finance management
7. implementing good practice in transparency, reporting and audit to deliver effective accountability.

Our code was first adopted by the Authority in June 2012 and was most recently updated and approved by Members in March 2022.

Focusing on outcomes for the community and implementing a vision for the local area

The Authority’s purposes, vision and intended outcomes for residents, visitors and other stakeholders are identified in a range of policy documents. The overarching vision for the management of the Forest was set out in the Partnership Plan 2015–2021 and has been revised into the subsequent 2022-2027 Plan published in March 2022. These Plans have been developed jointly by all the main organisations with interests and responsibilities in the National Park, including:

• Environment Agency
• Forestry England
• Hampshire County Council
• Natural England
• New Forest District Council
• New Forest National Park Authority
• Test Valley Borough Council
• Verderers of the New Forest
• Wiltshire County Council

The Partnership Plan is a plan for the National Park as a place and not specifically for the National Park Authority or any other organisation and has been developed following extensive community and stakeholder engagement. It is vital to have a wide range of important stakeholders who put down in writing what they will be doing for the Forest during this time, increasing governance and accountability for all. The Partnership Plan was approved by the Authority at its meeting 24 March 2022.

A comprehensive governance framework, of both members and senior officers, was developed by the partners to monitor, review and assess the stated actions and outcomes from the Plan over its four years.

The Authority’s own Business Plan and annual Work Programmes take their cues from the Partnership Plan, incorporating those actions for which the Authority has direct responsibility. The Authority adopted a Business Plan covering the period 2023-2027 at its Authority meeting on 13 July 2023 following extensive consultation of Members and Staff. This consultation was invaluable in identifying the priorities and objectives to be included in the Plan over the four-year term and responding proactively and flexibly to future challenges and opportunities affecting the New Forest National Park. A detailed Work Programme for 2024/25 was approved at the Authority meeting on 21 March 2024. The Business Plan presents an account and assessment of the Authority’s activities, alongside the separate reports of its financial position and performance, and is aligned to the Authority’s purposes and duty as well as the five core themes of ‘Climate, Nature, People, Place and Partnership’.

Progress is monitored regularly by the Executive Board and the Resources, Audit and Performance Committee.

In 2024/25, the Authority received a single-year core revenue grant settlement at the same financial level as 2023/24 - £3.25m; in addition it was given a further £0.25m of capital funds for the year. Since 2018/19, the NPA’s core Defra grant had been “frozen” at this level each year, therefore equating to significant reductions each year in real terms. The 2024/25 grant was the NPA’s fifth year of a frozen grant and has been followed with a 9% revenue funding cut recently announced for 2025/26 – taking our core revenue grant funding below £3m.

Given the financial uncertainty over revenue and capital funding, plus the countdown on the lease for the NPA’s main Town Hall premises, the Authority re-established the Resources and Facilities Task & Finish Group, comprising seven members working alongside the Executive Leadership Team. This group reports back to the Resources, Audit and Performance Committee via the Chief Finance Officer. In addition to the Medium-Term Financial Plan, and due to the uncertainty around future Defra revenue funding, the Authority created a ‘forward projection’ indicating a higher level where our budgets are likely to range in the longer term (up to 10 years).

Recognising that people are our biggest asset, in 2019 the NPA introduced a ‘People Plan’ to help focus our development as an organisation. This looks at how we work and sets out actions to further improve our working practices and develop/sustain a high-performing team. A biennial staff survey was undertaken in December 2023; the results of the survey were generally very positive and these results / emerging trends were then considered by a staff group which created a People Plan Action Plan later in 2024/25.

An annual Health and Safety report is compiled and considered by the Resources, Audit and Performance Committee in July and a review of the Authority’s Health and Safety Policy was conducted in 2022/23; the updated policy was approved by the Resources, Audit and Performance Committee in June 2023.

Management information is produced to assist with the measurement of performance including a number of key performance indicators. A review of the indicators is currently being considered between the NPA family and Defra regarding a new suite of nationally-collected annual indicators; these are expected to be finalised for 2025/26. Budgetary Control Reports are reviewed monthly by the budget holders and on a regular basis by the Executive Board and Resources, Audit and Performance Committee. The Committee also considers the Authority’s Medium-Term Financial Plan which aligns future resources to their priorities. Where performance slips, this is further examined and action taken where possible.

The Authority continues to be highly successful in applying for grant funding from funding bodies and in attracting external funding into the area, consistently leveraging around £18 for every £1 of funding we put towards partnership projects based on the five year average. The Authority is also keenly investigating corporate partnerships (sponsorships) through the wider National Park family, National Parks Partnerships Ltd and the more recent National Parks Foundation (charitable arm). Their remit is to create successful partnerships that generate vital income to make a significant, sustainable and discernible contribution to the improved quality of UK National Parks and the benefits they offer for generations to come.

The Chief Executive reports to the Authority on the development and performance of the Authority overall. A full Annual Review document, detailing the Authority’s activities and achievements over each year, is published each Summer.

The Authority also deals with requests for information under the Freedom of Information Act 2000 and the Environmental Information Regulations 2004, and Subject Access Requests under Data Protection legislation. Request and responses are dealt with by our Information and Data Protection Officer. Officers are in the process of reviewing the Authority’s records management policies and practices. SharePoint is now being used by all Teams for document management and storage. This is a cloud-based system which provides greater security and more flexibility for home and mobile working. Continued developments in records management processes will lead to improvements in the Authority’s compliance with Data Protection legislation and document retention and will streamline requests for information and improve the overall efficiency, effectiveness and security of our records management and ICT processes.

The Authority has adopted and maintains a formal complaints process to enable complaints about the Authority’s activities to be considered and responded to. Information on how to use the complaints process is available on the Authority’s website. Information on complaints received is considered by the Authority’s officers and lessons for service improvement are identified wherever practicable. The number of complaints received has increased on last year however still remains low - nineteen this year, of which three were referred to the Local Government and Social Care Ombudsman; all were subsequently closed after initial enquiries with no further action.

The Authority is subject to a full and independent external audit of the financial management arrangements in place for 2024/25. Audit reports are issued by the External Auditors and Internal Auditors to be considered by the Authority’s Resources, Audit and Performance Committee.

In March 2017, the Resources, Audit and Performance Committee approved an Assurance Framework which specifies the sources of information on which the Authority relies to gain assurance that all key risks are identified and that controls are operating effectively. The Resources, Audit and Performance Committee on 4 March 2024 approved an Internal Audit Charter for 2024/25 which clearly defined the purpose, authority and responsibility of the internal audit activity; at the same meeting the Committee also approved the Internal Audit Plan for 2024/25.

Services are required to review policies and procedures to ensure those services are delivered, designed and continually monitored to meet the needs of the whole community. As part of its response to the original Landscapes Review, the Authority set up an officer group to review our approach to accessibility and diversity, both within the organisation and the geographic area, under the heading of ‘New Forest Voices’. Meetings of the group continued throughout 2024/25, working around three key streams – understanding, experiences and ways of working.

Working together to achieve a common purpose with clearly defined functions and roles

The Standing Orders, Scheme of Delegations, Financial Regulations, Contract Standing Orders and other procedures describe how the Authority operates and how decisions are made to ensure that these are efficient, transparent and accountable to local people. All these key policies were kept under review during the year and amendments made as and when necessary.

Meetings of the Authority are held in public and live streamed, save for individual items of a sensitive nature properly considered in confidential session in accordance with the legislation. Agendas and minutes of meetings are available for inspection on the Authority’s website. Members of the public may ask questions and make representations in person on relevant matters at meetings. Each of the Committees has distinct terms of reference, with each having a periodic review. Member attendance for the Authority and Committee meetings during the year was 75%.

The roles and responsibilities of the members and officers are further defined in member / officer job descriptions and there is a Local Protocol for Member and Officer Relations. The roles of the Chief Executive, Monitoring Officer and Chief Finance Officer are filled, with each officer fully understanding their respective responsibilities. The role of the Monitoring Officer is generally performed in-house by the Authority’s Solicitor and this position became vacant in January 2025. An Interim Monitoring Officer has been appointed whilst the Authority recruits a permanent person for this position. In addition, an agreement has been signed with Southampton City Council for them to provide any specialist legal support required. None of the other holders of the above roles changed during the 2024/25.

The effect of strong budgeting and regular financial monitoring procedures has also shown in the financial outturn; for example, in recent years the Authority’s outturn has always been within the targeted 2% of the original budget and 1% of any revised budget.

There are agreed protocols for consultation with the Chief Finance Officer on key decisions and advice to the Authority and its Committees. The CFO attends meetings of the Authority’s Executive Leadership Team, Strategic Leadership Team and Executive Board in order to ensure a sound understanding of the organisation’s key priorities and risks.

Promoting and demonstrating values through high standards of conduct and behaviour

There are Codes of Conduct for members and officers in place and performance appraisal processes for officers. Training is given to members on the Code of Conduct and there is a complete Register of Members’ Interests. The Authority operates a standards regime for the conduct of members in compliance with the Localism Act 2011. There is currently a Standards Committee which monitors the ethical framework of the Authority. An internal audit review into the ‘Corporate Governance Framework for Members’ was undertaken in 2021/22 and received the second highest assurance level.

There is an adopted Whistleblowing Policy, with confidential reporting arrangements in place to enable internal and external whistleblowing. There is also an Anti-fraud & Corruption Policy in place and a supplementary Anti-Money Laundering Policy. In March 2023, the Authority approved a new draft Safeguarding Policy and this was officially launched in 2023/24 with an agreed communication and training plan. The Authority’s core ‘Values’ were included in the 2024/25 staff annual appraisals to provide an opportunity for staff to consider how they have put the Authority’s values into practice; ideas to promote the values are covered on the Authority’s intranet. The Authority is also consulted staff on an updated Equality, Diversity and Inclusion Policy during 2024/25.

The Monitoring Officer continuously reviews the Authority’s Standing Orders and Scheme of Delegations and updates them as and when necessary. The Authority’s Committee structure is also kept under review, as is the meetings timetable to facilitate long term planning and diarising of meetings.

Taking informed and transparent decisions and managing risk

There is a systematic strategy, framework and associated processes for managing risk. The Risk Management Strategy was updated and reviewed in December 2015. The Authority’s risk register focuses on those projects where the risk of not achieving them would have a significant impact on the Authority. These projects are grouped in the register under the purposes and duty of ‘Protect, Enjoy and Prosper’. Significant operational risks potentially affecting the Authority have been grouped under ‘Achieving Excellence’. Risks are scored by likelihood and impact to give a green, amber or red warning level and regular consideration is given to appropriate measures and strategies to mitigate the risks – the risk register details 19 key risks across the organisation and, as at the end of March 2025, 6 risks were green, 10 amber and 3 red. The register is monitored and reviewed by the Executive Board and half-yearly by the Resources, Audit and Performance Committee.

The risks associated with our annual work programme are monitored through the quarterly reports to RAPC using the traffic light system to monitor progress. Members oversee the strategic direction and annual objectives. This enables relevant risks to be identified and evaluated, with consideration given to appropriate mitigation strategies.

The Authority complies with the Local Government Transparency Code and, as such, has a designated page on its website containing all the information required to be published; in a number of cases the Authority has gone beyond the minimum requirements of the Code and published further information to better aid understanding and transparency.

The Authority is fully compliant with all current procurement legislation including the Public Contract Regulations 2015 and Procurement Act 2023. It uses an online e-procurement portal (In-Tend) and the governments new ‘Find a Tender’ website for all significant quote/tender/framework opportunities, ensuring openness and fairness to all potential suppliers.

Developing capacity to be effective

Senior Officers’ learning and development needs are identified and met through induction programmes and the appraisal system, which includes learning and development target areas. All new members undergo a full internal induction programme and are actively encouraged to attend a general ‘National Parks’ induction.

There have been a number of informal training sessions for members and Members’ Days on various aspects of member responsibilities and to aid the development of policy; these Members Days included development of the role of members, New Forest Marque, and a meeting with representatives from Forestry England.

The Authority continually seeks to train its managers and officers. Advocating mental health wellbeing in the workplace is an important part of the People Plan and we have arranged training and certification of a number of Mental Health First Aiders to assist them with crisis intervention and to act as advocates of mental health wellbeing in the workplace. We have also arranged mental health awareness courses for all staff and managers - this will be an ongoing programme designed to provide staff with an understanding of mental health enabling us to build resilience and apply self-care and has helped managers recognise the early warning signs of poor or declining mental health within their team to enable early intervention and signposting.

Other important developments and training include Safeguarding, Emergency First Aid at Work, Fire Awareness, Discovery Days and many more specific personal development courses. Officers continue to be encouraged to complete relevant courses through the e-learning portal which offers a wide range of training and development opportunities for all staff.

Engaging with people to ensure accountability

The Authority has developed and maintained a range of relationships and arrangements with other agencies in the public, private and voluntary sectors, to ensure that they are able to engage with and contribute to the work of the Authority. Following the launch of the Accord between Forestry England and National Parks England in July 2018, members agreed that although there was a significant amount of engagement with Forestry England, there was good case for more formal mechanisms that would ensure more effective and collaborative working as well as early engagement and identification of opportunities and solutions. Officers from both Forestry England and the Authority accordingly work together in delivering local outcomes for the shared priorities of the two organisations and the Deputy Surveyor and NPA officers provide periodic updates to the Resources, Audit and Performance Committee on joint working activities between Forestry England and the Authority in terms of the Accord.

Our Statement of Community Involvement on Planning Matters, setting out how the National Park Authority would involve local communities and others in its work, was revised in 2022/23 and, following significant formal consultation, was approved by Members in 2023.

Member representation has continued with a number of external bodies such as the Court of Verderers, the Hampshire and Isle of Wight Local Government Association, New Forest Local Access Forum, New Forest Marque, New Forest Consultative Panel and Campaign for National Parks.

The Authority continues to work with local businesses to deliver Local Information Points to promote visitor information in the National Park. Our core ranger work is boosted by jointly funded projects with Forestry England and New Forest District Council, enabling us to engage with visitors and local residents throughout the National Park and in nearby communities. Other examples of joint working include taking forward the work of the Green Halo Partnership (supporting the local economy, improved health and wellbeing encouraging sustainable living and enhancing the natural environment) and Hampshire Greenprint.

The Authority continued to develop contacts during the 2024/25 year to promote understanding of the National Park. This included work with schools to highlight the things that make the New Forest special and how we can all care for it. We also renewed efforts to contact new and under-served communities.

Progress continued to be made on the Recreation Management Strategy review during 2024/25 within the overall new Partnership Plan framework. The Recreation Management Strategy sets out the strategic direction for the management of outdoor recreation in the New Forest National Park from 2010 – 2030. The strategy seeks to guide and influence recreation and spatial planning policy and implementation across the whole of the National Park and adjoining areas. Work to manage recreation in partnership with other organisations is ongoing through the Recreation Management Steering Group and Advisory Group. This includes both issue-specific activities and wider strategic work.

The Authority has continued to support and input into the New Forest Consultative Panel, which is an advisory forum comprising representatives from approximately eighty organisations with an interest in the New Forest National Park and adjacent areas. It meets quarterly to discuss topical issues and provide views to the National Park Authority and other statutory bodies. We also facilitate other Forums with wide representation from relevant organisations to help guide and communicate work programmes relating to dog walking, cycling, equine issues, animal accidents and recreation management.

The New Forest Land Advice Service has continued to provide wide-ranging support to land-owners, land managers and young commoners throughout the year. The future of commoning is an extremely important issue at present, and for the coming year, given the uncertainties around future funding provision.

The Authority routinely consults Parish Councils for their views on all planning applications by providing them with an initial planning officer assessment alongside details of the application. Communication has been aided further with the successful Parish Quadrant meetings which are Chaired by the respective parish representative on the Authority and held throughout the year.

The Authority engaged with various media outlets, as well as through publications such as Park Life, the Pocket Guide and our Annual Report to ensure regular communication on our work performance and issues and opportunities, together with events, press releases, regular email newsletters, website updates and social media posts.

In June 2024, the Authority approved a new Equality, Diversity and Inclusion Policy covering everyone interacting with or to the Authority.

Continuous Improvement

In December 2018, the Authority fed into the Landscapes Review – Call for Evidence (often referenced as the ‘Glover Review’), reflecting views expressed by members and staff to the questions raised. The final review document was published on 21 September 2019 and the Authority clearly set out its initial response to react positively to its thoughts and recommendations. In January 2022, the government published their response to the original report recommendations and undertook a 12-week open consultation to which the Authority responded in April 2022.

The Authority aims to be clearly accountable for the effective delivery of services, through setting targets and measuring performance. As reported earlier in the Statement, a review of the annual national targets and outcomes framework is currently being considered between the protected landscapes family and Defra.

Objectives and targets are developed for each service, and performance reviewed against these. Senior NPA officers together with officers of other NPAs are exploring possible savings and efficiencies in sharing best practices and, in some cases, sharing services.

Service level agreements with New Forest District Council provided the services of strategic HR advice, Internal Audit, GIS and some financial services. The Authority also provides services to other local bodies through SLAs; this included archaeology, rangers and communications services during the last year.

Review of Effectiveness

The Authority has a responsibility for conducting, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness is informed by the work of Officers within the Authority who have the responsibility for the development and maintenance of the governance environment, the Internal Auditor’s report and also by comments made by the external auditors and other review agencies and inspectorates.

Factors which influence the controls environment include: ethics, integrity, operating style and the way management and Members assign responsibility and authority. The roles of the Authority, the Resources, Audit and Performance Committee and Internal Audit are explicit in maintaining the effectiveness of the governance framework.

Of the 29 Actions/Outcomes in the 2024/25 Work Programme, there were twenty-four green, four amber and one red.

Major strategic plans and policies receive consideration by Members. A comprehensive scheme of delegation to Officers has been approved by Members and makes clear that the role of Officers is to implement and give effect to strategies and policies approved by the Authority.

The Authority has maintained arrangements to ensure that its dealings are lawful and comply with financial regulations. The Authority’s Solicitor and/or Monitoring Officer considers all reports considered by Members, which assists in ensuring that the Authority discharges its functions in accordance with the law.

Members have a key role in providing assurance that the Authority’s funds are used economically, efficiently and effectively in accordance with agreed policies. The Medium-Term Financial Plan and Budget is agreed annually by the Authority and budget monitoring reports are considered quarterly at meetings of the Resources, Audit and Performance Committee. The Authority’s Accounts are subject to external audit on an annual basis and reported to the Authority at a public meeting.

All Member meetings of the Authority commence with an item regarding declaration of pecuniary and non-pecuniary interests, with signed records of interests declared kept with the minutes of the meeting. A Register of Members’ Interests is maintained and Members’ interests are publicly available on the Authority’s website.

The Internal Auditor’s report for 2024/25, considered at the Resources, Audit and Performance Committee meeting on 2 June 2025, states:

“I am satisfied that sufficient assurance and advisory work has been carried out to allow me to form a conclusion on the adequacy and effectiveness of the internal control environment. In my opinion the frameworks of governance, risk management and management control are ‘reasonable’ and audit testing has demonstrated controls to be working in practice. Where weaknesses have been identified through internal audit review, we have worked with management to agree appropriate corrective actions and a timescale for improvement.”

Ernst & Young LLP act as the Authority’s external auditors and are responsible for reviewing and reporting on the Financial Report (Statement of Accounts) and arrangements for securing economy, efficiency and effectiveness in the use of resources.

The Authority’s Business Continuity Plan was updated and reviewed during 2017/18 and audited by the internal auditors with a reasonable level of assurance and a limited number of management actions which have been agreed to by officers. This Plan was reviewed again by internal audit during 2021/22 to consider the impact of the pandemic arrangements and any lessons that were learnt from them for possible future scenarios. A successful desk top exercise by the Cyber Incident Response Plan Team was conducted on 4 September 2024 around a scenario of a breach of our IT systems; lessons learned from this exercise were discussed and recorded.

Significant governance issues

With the adoption of the National Park-wide Partnership Plan in 2022, the Authority completed and approved a set of priorities for its own Business Plan during 2024/25, to include an annual Work Programme and its monitoring framework.

The Authority’s review of its Counter Fraud policies and procedures, in light of updated code of practices and self-assessment toolkit from the Chartered Institute of Public Finance & Accountancy (CIPFA) and International Framework for Good Governance in the Public Sector, was not progressed as expected in 2024/25 due to other pressures and so this work will be prioritised in 2025/26 to ensure the Authority continues to follow best practice.

As reported elsewhere in the Statement, a full staff survey was conducted at the end of 2023. The very positive results were analysed by the staff working group and were used to inform a review of the People Plan; the next survey is due in November 2025.

The Authority will look to complete its, broader than originally expected, work on establishing best practice in records management across the organisation, thus ensuring compliance with data protection legislation (including GDPR) and retention schedules.

CERTIFICATION

To the best of our knowledge, governance arrangements, as defined above have been in place within the Authority for the year ending 31 March 2025 and up to the date of approval of the Annual Report and Statement of Accounts.

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

Signed: Victoria Mander (Chair) — Date: 4 February 2026

Signed: Alison Barnes (Chief Executive) — Date: 4 February 2026

COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2025

Nigel Stone, CPFA FCCA - Chief Finance Officer 4 February 2026

Financing and Investment Income and Expenditure

Taxation and Non-Specific Grant Income

Comparative table — Year ended 31 March 2024

Financing and Investment Income and Expenditure (2023/24): Interest and Investment Income (132); Net interest on the defined benefit liability / asset (Note 8): 27; Total Financing and Investment Income and Expenditure (105).

Taxation and Non-Specific Grant Income (2023/24): Capital Grants and Contributions (Note 15/17) (133); National Park Revenue Grant (Note 7) (3,252); (Surplus)/Deficit on the Provision of Services (136); Re-measurement of the defined benefit liability / asset (Note 8) (943); Total Comprehensive Income and Expenditure (1,079).

EXPENDITURE AND FUNDING ANALYSIS FOR YEAR ENDED 31 MARCH 2025

Supports the Comprehensive Income and Expenditure Statement.

Transfers and reserves:

• Transfer to/(from) Other Earmarked Reserves: 466
• (Surplus)/Deficit in Year: (25)
• Opening Revenue Support Reserve Balance: (63)
• (Surplus)/Deficit in Year: (25)
• Closing Revenue Support Reserve Balance at 31 March: (88)

Further information can be found in Note 6.

Comparative table — Year ended 31 March 2024

Transfers and reserves (2023/24): Transfer to/(from) Other Earmarked Reserves 87; (Surplus)/Deficit in Year (22); Opening Revenue Support Reserve Balance (41); (Surplus)/Deficit in Year (22); Closing Revenue Support Reserve Balance at 31 March (63).

BALANCE SHEET AS AT 31 MARCH 2025

Nigel Stone, CPFA FCCA - Chief Finance Officer 4 February 2026

MOVEMENT IN RESERVES STATEMENT

All figures in £000’s.

Comparative table — 2023/24

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025

INDEX OF NOTES TO THE FINANCIAL STATEMENTS

1. Note 1 Accounting Policies — Page 30
2. Note 2 New Accounting Standards Yet To Be Adopted — Page 41
3. Note 3 Judgements made in Applying Accounting Policies — Page 41
4. Note 4 Uncertainties Relating To Assumptions and Estimates Used — Page 42
5. Note 5 Adjustments between Funding Basis and Accounting Basis Under Regulations – General Fund — Page 43
6. Note 6 Expenditure and Funding Analysis — Page 44
7. Note 7 Grant Income — Page 46
8. Note 8 Defined Benefit Pension Scheme — Page 47
9. Note 9 Capital Expenditure and Financing — Page 52
10. Note 10 Property, Vehicles, Plant and Equipment — Page 53
11. Note 11 Intangible Assets — Page 54
12. Note 12 Debtors — Page 55
13. Note 13 Cash and Cash Equivalents — Page 55
14. Note 14 Creditors — Page 56
15. Note 15 Developers’ Contributions — Page 56
16. Note 16 Transfers to/from Earmarked Reserves — Page 56
17. Note 17 Usable Reserves — Page 57
18. Note 18 Unusable Reserves — Page 57
19. Note 19 Financing Activities — Page 58
20. Note 20 Leases — Page 59
21. Note 21 Members’ Allowances — Page 61
22. Note 22 Officers’ Remuneration — Page 62
23. Note 23 Termination Benefits — Page 63
24. Note 24 External Audit Costs — Page 63
25. Note 25 Related Parties — Page 63
26. Note 26 Provisions — Page 64
27. Note 27 Contingent Liabilities — Page 64
28. Note 28 Nature and Extent Risks Arising from Financial Statements — Page 64
29. Note 29 Events after the Reporting Period — Page 65
30. Note 30 Going Concern — Page 65
31. Note 31 Authorisation of Accounts for Issue — Page 66

NOTES TO THE FINANCIAL STATEMENTS

Note 1. ACCOUNTING POLICIES

i) General Principles

The Statement of Accounts summarises the Authority’s transactions for the 2024/25 financial year and its position at the year-end of 31 March 2025. The Authority is required to prepare an annual Statement of Accounts by the Accounts and Audit Regulations 2015 (including any subsequent amendment regulations). The Regulations require the accounts to be prepared in accordance with proper accounting practices. This primarily comprises of the Code of Practice on Local Authority Accounting in the United Kingdom 2024/25.

The accounting convention adopted in the Statement of Accounts is principally historical cost, modified by the revaluation of certain categories of non-current assets and financial instruments.

ii) Accruals of Income and Expenditure (Debtors and Creditors)

The accounts of the Authority are prepared on an accruals basis. This means that the sums due to or from the Authority during the year and included in the accounts, whether or not the cash has actually been received or paid in the year in question. Accruals have been made for all known material revenue and capital debtors and creditors for goods and services supplied by and to the Authority during the year.

iii) 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. Cash equivalents are investments that mature or can be called within 24 hours and that are readily convertible to known amounts of cash with insignificant risk of change in value.

The Authority will treat the following as Cash and Cash Equivalents:

• Instant Access Call Accounts
• Instant Access Money Market Funds
• Deposits with one day to maturity

iv) Changes in Accounting Policies

Prior period adjustments may arise as a result of a change in accounting policies or to correct a material error. Changes in accounting estimates are accounted for prospectively, i.e. in the current and future years affected by the change and do not give rise to a prior period adjustment.

Changes in accounting policies are only made when required by proper accounting practices or the change provides more reliable or relevant information about the effect of transactions, other events and conditions on the Authority’s financial position or financial performance. Where a change is made, it is applied retrospectively (unless stated otherwise) by adjusting opening balances and comparative amounts for the prior period as if the new policy had always been applied.

Material errors discovered in prior period figures are corrected retrospectively by amending opening balances and comparative amounts for the prior period.

v) Charges to Revenue for Non-Current Assets

Services and support services are debited with the following amounts to record the cost of holding long-term assets during the year:

• Depreciation/Amortisation attributable to the assets used by the relevant service;
• Revaluation and impairment losses on assets used by the service; where there are no accumulated gains in the Revaluation Reserve against which the losses can be written off;
• Amortisation of intangible assets attributable to the service.

The Authority is not required to raise income to fund depreciation/amortisation, revaluation and impairment losses or amortisations. Charges are therefore mitigated by way of an adjusting transaction with the Capital Adjustment Account via the Movement in Reserves Statement.

vi) Employee Benefits

Benefits Payable During Employment

Short-term employee benefits are those due to be settled within 12 months of the year-end. They include such benefits as wages and salaries, paid annual leave and paid sick leave, bonuses and non-monetary benefits for current employees and are recognised as an expense for services in the year in which employees render service to the Authority. An accrual is made for the cost of holiday entitlements (or any form of leave e.g. flexi-time) earned by employees but not taken before the year-end which employees can carry forward into the next financial year. The accrual is made at the wage and salary rates applicable in the current accounting year. The accrual is charged to 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 Authority to terminate an Officer’s employment before the normal retirement date or an officer’s decision to accept voluntary redundancy and are charged to services on an accruals basis in the Comprehensive Income and Expenditure Statement when the Authority is demonstrably committed to the termination of the employment of an Officer or group of Officers or making an offer to encourage voluntary redundancy.

Where termination benefits involve the enhancement of pensions, statutory provisions require the General Fund balance to be charged with the amount payable by the Authority to the pension fund or pensioner in the year, not the amount calculated according to the relevant accounting standards. In the Movement in Reserves Statement, appropriations are required to and from the Pensions Reserve to remove the notional debits and credits for pension enhancement termination 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.

Post-Employment Benefits

Employees of the Authority are members of the Local Government Pensions Scheme, administered by Hampshire County Council. The scheme provides defined benefits to members (retirement lump sums and pensions), earned as employees worked for the Authority. Detailed regulations govern rates of contribution and scales of benefits, the latter normally being in the form of a lump sum and annual pension.

The Local Government Scheme is accounted for as a defined benefits scheme:

• The liabilities of the Hampshire Pension Fund attributable to the Authority are included in the Balance Sheet on an actuarial basis using the projected unit credit method;
• Liabilities are discounted to their value at current prices, using a discount rate of 2.7% (based on the indicative rate of return on a high-quality corporate bond);
• The assets of the Hampshire Pension Fund attributable to the Authority are included in the Balance Sheet at their fair value;
• The change in the net pensions’ liability is analysed into several components (service cost, re-measurements, contributions etc.).

Contributions paid to the Hampshire Pension Fund – cash paid as employer’s contributions to the pension fund in settlement of liabilities; not accounted for as an expense.

In relation to retirement benefits, statutory provisions require the General Fund balance to be charged with the amount payable by the Authority to the pension fund or directly to pensioners 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 that are earned by employees.

The pension scheme is detailed in note 8 to the Financial Statements.

Discretionary Benefits

The Authority also has restricted powers to make discretionary awards of retirement benefits in the event of early retirements. Any liabilities estimated to arise as a result of an award to any member of staff are accrued in the year of the decision to make the award and accounted for using the same policies as are applied to the Local Government Pensions Scheme.

vii) Exceptional Items

When items of income and expense are material, their nature and amount is disclosed separately, either on the face of the Comprehensive Income and Expenditure Statement or in the notes to the accounts, depending on how significant the items are to an understanding of the Authority’s financial performance.

viii) Financial Instruments

Financial Liabilities are measured at fair value and carried at their amortised cost in the Balance Sheet.

Financial Assets are divided into three classifications:

• Amortised Cost — where cash flows are solely payments of principal and interest and the Authority business model is to collect these cash flows.
• Fair value through Other Comprehensive Income — where cash flows are solely payments of principal and interest, and the Authority business model is to both collect these cash flows and sell the instrument and equity investments that the Authority has elected into this category.
• Fair value through the Profit and Loss — all other financial assets.

ix) Government Grants and Contributions

Whether paid on account, by instalments or in arrears, government grants and third-party contributions and donations are recognised as due to the Authority when there is reasonable assurance that:

• the Authority will comply with the conditions attached to the payments, and
• the grants or contributions will be received.

Amounts recognised as due to the Authority are not credited to the Comprehensive Income and Expenditure Account until conditions attached to the grants or contributions have been satisfied. Monies advanced as grants and contributions for which conditions have not been satisfied are carried in the Balance Sheet as creditors. When conditions are satisfied, the grant or contribution is credited to the relevant service line (attributable revenue grants and contributions) or Taxation and Non-Specific Grant Income (non-ring-fenced revenue grants and all capital grants) in the Comprehensive Income and Expenditure Statement.

Where capital grants are credited to the Comprehensive Income and Expenditure Statement, they are reversed out of the General Fund Balance in the Movement in Reserves Statement. Where the grant has yet to be used to finance capital expenditure, it is posted to the Capital Grants Unapplied reserve. Where it has been applied, it is posted to the Capital Adjustment Account. Amounts in the Capital Grants Unapplied reserve are transferred to the Capital Adjustment Account once they have been applied to fund capital expenditure.

x) Intangible Assets

Expenditure on non-monetary assets that do not have physical substance but are controlled by the Authority as a result of past events (e.g. software licences) is capitalised when it is expected that future economic benefits or service potential will flow from the intangible asset to the Authority. Expenditure on the development of websites is not capitalised if the website is solely or primarily intended to promote or advertise the Authority’s goods or services.

Intangible assets are measured initially at cost and amortised over their useful life. Amortisation is charged to the Comprehensive Income and Expenditure Statement. Impairments and disposals are treated in line with policy; gains and losses on disposal are posted to Other Operating Expenditure.

xi) Overheads and Support Services

The costs of overheads and support services are charged to those that benefit from the supply or service in accordance with the costing principles of the CIPFA Service Reporting Code of Practice 2024/25 (SeRCOP). The total absorption costing principle is used – the full cost of overheads and support services are shared between users in proportion to the benefits received, with the exception of:

• Corporate and Democratic Core — costs relating to the Authority’s status as a multi-functional, democratic organisation;
• Non-Distributed Costs — the cost of discretionary benefits awarded to employees retiring early and past service costs arising from current year decisions whose effect relates to years of service earned in earlier years.

These categories are defined in SeRCOP and accounted for as separate headings in the Comprehensive Income and Expenditure Statement, as part of Net Expenditure on Continuing Services.

Cost Basis of Allocation

xii) Property, Plant and Equipment

Assets that have physical substance and are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and that are expected to be used during more than one financial year are classified as Property, Plant and Equipment.

Recognition

Expenditure on the acquisition, creation or enhancement of Property, Plant and Equipment is capitalised on an accruals basis, provided that it is probable that the future economic benefits or service potential associated with the item will flow to the Authority and the cost of the item can be measured reliably. Expenditure that maintains but does not add to an asset’s potential to deliver future economic benefits or service potential (i.e., repairs and maintenance) is charged as an expense when it is incurred.

A de minimis level is set for Property, Plant and Equipment assets below which expenditure is not capitalised.

Donated assets are initially valued at fair value. The difference between fair value and any consideration paid is credited to the Taxation and Non-Specific Grant Income line of the Comprehensive Income and Expenditure Statement, unless the donation has been made conditionally. Until conditions are satisfied, the gain is held in the Donated Assets Account. Where gains are credited to the Comprehensive Income and Expenditure Statement, they are reversed out of the General Fund Balance to the Capital Adjustment Account in the Movement in Reserves Statement.

Measurement

Assets are initially measured at cost, comprising purchase price and costs attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Assets are then carried using the following measurement bases:

• Land and Buildings – fair value (existing use value – EUV);
• Vehicles, Plant & Equipment – Depreciated Historical Cost.

Where there is no market-based evidence of fair value because of the specialist nature of an asset, depreciated replacement cost (DRC) is used as an estimate of fair value.

Assets included at fair value are revalued sufficiently regularly (at least every five years). Increases in valuation are matched by credits to the Revaluation Reserve; decreases are charged against revaluation gains where available or against service lines otherwise.

Impairment

Assets are assessed at each year-end for indications of impairment. Where impairment exists, the recoverable amount is estimated and impairment losses are recognised as appropriate, charged to the Revaluation Reserve where possible or to the Comprehensive Income and Expenditure Statement.

Depreciation

Depreciation is provided on all Property, Plant and Equipment by systematic allocation over useful lives. Methods and useful lives are described, including component accounting where necessary. Revaluation gains are also amortised to the Capital Adjustment Account.

Depreciation is applied in the year in which the asset is acquired and charged using the straight-line method.

Disposals and Non-Current Assets Held for Sale

When an asset is to be sold rather than used, it is reclassified as an Asset Held for Sale and carried at the lower of carrying amount and fair value less costs to sell. Losses and gains are treated accordingly; depreciation is not charged on Assets Held for Sale. When disposed, carrying amount is written off to Other Operating Expenditure; proceeds are netted off. Written-off value is appropriated to the Capital Adjustment Account so it is not a charge against usable reserves.

xiii) Reserves

The Authority sets aside specific amounts as reserves for future policy purposes or to cover contingencies. Reserves are created by appropriating amounts out of the General Fund Balance in the Movement in Reserves Statement. When expenditure to be financed from a reserve is incurred, it is charged to the appropriate service in that year to score against the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement. The reserve is then appropriated back into the General Fund Balance in the Movement in Reserves Statement.

Certain reserves manage accounting processes for non-current assets, financial instruments, retirement and employee benefits and do not represent usable resources for the Authority – these reserves are explained in the relevant policies. The reserves held at 31 March 2025 are reported in notes 17 and 18.

xiv) Value Added Tax (VAT)

All VAT collected is payable to HM Revenue and Customs and VAT paid is recoverable. Income and expenditure in the Statement of Accounts excludes any amounts related to VAT other than any irrecoverable VAT which is charged to the service the supply related.

xv) Leases

At inception of an arrangement, the Authority determines whether such an arrangement is or contains a lease. IFRS 16 policy is applied: lease liabilities measured at present value of lease payments; right-of-use assets measured at cost; lease payments split between principal and finance cost; short-term and low-value leases are expensed. Discount rate is Authority’s incremental borrowing rate or Public Works Loan Board rate where necessary. Minimum Revenue Provision (MRP) is calculated using an annuity method on an asset life basis with an annuity rate equal to PWLB annual certainty rate prevailing at 31 March of the financial year in which the expenditure was incurred.

xvi) Revenue Expenditure Funded From Capital Under Statute

Expenditure that may be capitalised under statutory provisions but does not result in a non-current asset is charged to the service in the Comprehensive Income and Expenditure Statement. Where the Authority funds this from existing resources, a transfer in the Movement in Reserves from the General Fund Balance to the Capital Adjustment Account reverses out the amounts charged.

xvii) Provisions

Provisions are made where an event gives the Authority a present obligation that probably requires settlement by transfer of economic benefits or service potential and a reliable estimate can be made. Provisions are charged as an expense to the appropriate service in the year the obligation arises and measured at best estimate. Estimated settlements are reviewed annually; where less probable, the provision is reversed and credited back.

xviii) Revenue Recognition

Income recognition follows accruals basis: fees and charges recognised when goods/services provided; interest on investments accounted using effective interest rate; debtors recorded where income recognised but cash not received. Exception: planning fee payments recognised when planning application registered on planning system.

xix) Roundings

Figures are usually shown to the nearest one thousand pounds and therefore some minor roundings may occur.

xx) Going Concern

Financial statements are prepared on the assumption the Authority will continue in operational existence for the foreseeable future. This is evidenced through the Authority’s Medium-Term Financial Plan and recent stability in its core National Park Grant from Defra — see Note 30.

Note 2. NEW ACCOUNTING STANDARDS YET TO BE ADOPTED

The Code requires the Authority to disclose appropriate information relating to the potential impacts of any accounting standards that have been issued but have yet to be adopted. It is not considered that any such upcoming changes in this regard will have a material impact on the overall financial position of this Authority.

Note 3. JUDGEMENTS MADE IN APPLYING ACCOUNTING POLICIES

In applying the accounting policies set out in this document the Authority has had to make certain judgements about complex transactions or those involving uncertainty about future events.

There were no such critical judgements made in 2024/25 that would have a significant effect on the amounts in the financial statements.

Note 4. UNCERTAINTIES RELATING TO ASSUMPTIONS AND ESTIMATES USED

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for the revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The key judgements and estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities with the next financial year (excluding those that are carried at fair value based on recently observed market prices) are as follows:

Note 5. ADJUSTMENTS BETWEEN FUNDING BASIS AND ACCOUNTING BASIS UNDER REGULATIONS – GENERAL FUND

Note 6. EXPENDITURE AND FUNDING ANALYSIS

This note provides a reconciliation of the main adjustments to the Net Expenditure Chargeable to the General Fund Balances to arrive at the amounts in the Comprehensive Income and Expenditure Statement. The relevant transfers between reserves are explained in the Movement in Reserves Statement.

* In the case of this Authority, any final balance is added/deducted from the Revenue Support Reserve (not directly from the General Fund Reserve which simply contains our stipulated minimum reserve).

2024/25 — Adjustments from General Fund to arrive at the Comprehensive Income and Expenditure Statements amounts

Explanation of columns: Adjustments for Capital Purposes add in depreciation, amortisation and impairment and revaluation gains and losses in service line and adjust other operating expenditure and capital financing; Net change for Pension Adjustments removes employer pension contributions and replaces with IAS 19 entries; Other Differences relates to accumulated absences.

Expenditure and Income Analysed by Nature

Note 7. GRANT INCOME

New Forest National Park Authority received an approved core revenue National Park Grant of £3,501,501 from the Department for Environment, Food and Rural Affairs (£3,251,501 in 2023/24).

Details of other grants and contributions received during the year are shown in the table below:

Note 8. DEFINED BENEFIT PENSION SCHEME

a) Participation in Pension Scheme

The Authority participates in the Hampshire County Council administered Local Government Pension Scheme (“the Fund”). This is a funded defined benefit final salary scheme. The principal risks are longevity, statutory changes, structural changes, inflation, bond yields and equity investment performance.

b) Transactions Relating to Post-employment Benefits

The Authority recognises the cost of retirement benefits when they are earned by employees. The following transactions have been made in the Comprehensive Income and Expenditure Statement and the General Fund Balance via the Movement in Reserves Statement during the year:

Asset Ceiling

Under IFRIC14, an asset ceiling limits the amount of the net pension asset that can be recognised to the lower of (1) the amount of the net pension asset or (2) the present value of any economic benefits available in the form of refunds or reductions in future contributions to the plan. An adjustment has been made in the Accounts to apply this asset ceiling.

Asset Returns

Asset returns over the accounting period have been higher than expected - this has led to a gain on assets over the accounting period.

Financial Assumptions

There have been changes to the financial assumptions over the period — discount rate increased by 0.95%; CPI and salary increase assumptions unchanged. This resulted in improved balance sheet position; impact recognised in Other Comprehensive Income.

c) Pensions Assets and Liabilities Recognised in the Balance Sheet

The amount included in the Balance Sheet arising from the Authority’s obligation in respect of its defined benefit plans is as follows:

Reconciliation of the Movements in the Fair Value of Scheme (plan) Assets

Reconciliation of Present Value of the Scheme Liabilities (defined benefit obligation)

Local Government Pension Scheme assets (fair value) comprised

d) Basis and Risks for Estimating Assets and Liabilities

Liabilities assessed on an actuarial basis using the projected unit method; assets include equities, bonds, property, cash and other. Key risks include asset volatility, changes in bond yields, inflation risk, life expectancy, exiting employers, McCloud / Sargeant and Virgin Media legal cases. Figures prepared by Hymans Robertson LLP based on roll-forward of full valuation at 1 April 2023.

Significant actuarial assumptions

Sensitivity analysis

Impact on Defined Benefit Obligation at 31 March 2025:

The expected employer pension contribution for 2025/26 is £489,000 (17.5%).

Further information on the Hampshire Pension Fund: Pensions Services, Hampshire County Council, The Castle, Winchester, SO23 8UB — Telephone: (01962) 845588

Note 9. CAPITAL EXPENDITURE AND FINANCING

Capital expenditure may be financed in various ways. The Capital Financing Requirement (CFR) shows the overall indebtedness of the Authority. The table sets out the transactions required for financing of capital expenditure for 2024/25:

Note 10. PROPERTY, VEHICLES, PLANT AND EQUIPMENT

a) Valuation of Non-Current Assets

Expenditure on long term assets is capitalised provided that it yields benefits to the Authority for more than one financial year. Expenditure that does not increase the value of an asset is charged to revenue as it is incurred.

b) Analysis of Assets

The following list shows the range and number of assets owned by the Authority.

c) Movements on Non-Current Assets during the year

Details on gifted land in Bransgore and subsequent developments for affordable housing, valuations, and revaluation policy are provided. There were no impairments in 2024/25.

Community Asset

Vehicles, Plant and Equipment

Note 11. INTANGIBLE ASSETS

The intangible assets comprise wholly of computer software licences. These are recorded at historic cost and are amortised over their lives (estimated at 5-10 years) on a straight-line basis, commencing from date of acquisition. The amortisation charged for intangible assets in 2024/25 was £14,570. There were no impairments in 2024/25.

Right of Use Asset (Lymington Town Hall offices)

Assets Under Construction

Intangible Assets

Note 12. DEBTORS

An analysis of the Authority’s debtors as at 31 March is shown below:

Note 13. CASH AND CASH EQUIVALENTS

This table shows movement in cash in hand, at the bank and in deposits available within 24 hours during the year.

Note 14. CREDITORS

An analysis of the Authority’s current liabilities as of 31 March is shown below:

Note 15. DEVELOPERS’ CONTRIBUTIONS

This account reflects developers’ contributions received that will be released to finance future years capital expenditure. Split between long-term liabilities and Developers’ Contributions Unapplied under usable reserves:

Note 16. TRANSFERS TO/FROM EARMARKED RESERVES

The Authority has created a number of earmarked reserves to cover expenditure in future years. The table details those reserves and their movement during the year.