Merseyside Integrated Transport Authority Statement Of Responsibilities For The Statement Of Accounts


Merseyside Integrated Transport Authority



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Merseyside Integrated Transport Authority


Statement Of Accounting Policies (Cont'd)
The Authority's capital stock comprises entirely of the Mersey Tunnels, ventilation stations, approach roads and various small items of related transport and equipment with a deminimis value of £7.5k. It was decided that CIPFA's advice concerning "tolled infrastructure" would be followed, requiring the Tunnels to be classed as operational assets, with the consequence that they should be carried at current value in the accounts. Given the unique nature of these assets, it was further decided that the only meaningful valuation that could be provided was depreciated replacement cost. CIPFA reviewed the valuation methodology (Guidance on Highway Infrastructure Asset Valuation) in 2008 and clarified that depreciated replacement costs are now to be that of a modern equivalent, adjusted to reflect the current age, condition and performance of the asset.

As part of the valuation exercise the Tunnels toll collection system, which should be classified as partly infrastructure and partly equipment, was treated as being wholly infrastructure.


The surpluses arising on the valuation of fixed assets are credited to the Revaluation Reserve. Subsequent revaluations of fixed assets are planned at five yearly intervals, although material changes to asset valuations will be adjusted in the interim period as they occur.
Assets acquired under finance leases are also capitalised in the Authority's accounts, together with the liability to pay future rentals. There are no assets previously acquired under advance and deferred purchase schemes.
The Authority’s non-operational assets comprise of two parcels of land, currently used as car parks, and a gas main easement. These assets are treated as investment properties.

Under FRS11 (Impairment of Fixed Assets and Goodwill), the valuation of fixed assets must be adjusted to reflect impairment along with a disclosure note explaining the nature and extent of the impairment. As at 31 March 2009, the fixed assets of the Authority were in at least the same state of repair as they were when the District Valuer carried out his formal quinquennial valuation. No adjustment in the accounts for impairment is deemed necessary for the Authority.

The capital stock included in the Group accounts include MITA fixed assets and MPTE assets which include Merseytravel Headquarters, various bus shelters, turning circles, ferry buildings and vessels. The MPTE’s asset valuation follows the same principles as those adopted for the Authority.

6. Depreciation


Depreciation is provided for on all fixed assets with a finite useful life, which is determined at the time of acquisition or revaluation according to the following policy:
• newly acquired assets are depreciated as from the year of purchase, although assets in the course of construction are not depreciated until they are brought into use
• depreciation is calculated using the straight-line method using the following asset lives which were provided by external valuers as part of the quinquennial valuation exercise:-


Assets

Future Economic Lives in Years


Works Unit Depot

35

Georges Dock Building

40

Hinson Street Store

30

Tunnels Main Structure and Portals

50-86*

Tunnels Roadway Surfacing

5

Approach Road - Structures

86

- Surfacing


5-11*

Lighting Units

5

Toll Collection

5

Vehicles

4-12*

Equipment/Computer Equipment

4-20*

*Different asset lives provided for individual assets.
Merseyside Integrated Transport Authority


Statement Of Accounting Policies (Cont'd)

Depreciation is charged against the Mersey Tunnels, even though expenditure is incurred on an annual basis to maintain the integrity of the infrastructure. This complies with FRS15 (Tangible Fixed Assets).

7. Charges to Revenue
For 2008/09 the Mersey Tunnels are charged with depreciation representing a capital charge for all fixed assets used in the provision of services.
Amounts set aside from revenue for the repayment of external loans, to finance capital expenditure or as transfers to other earmarked reserves are disclosed separately as movements within the “Statement of Movement on the General Fund Balance”.
Within the Group accounts, capital charges for the MPTE follow Companies Acts requirements, but are neutralised through use of a deferred capital grants account, consequently differences in producing capital charges for the Authority and MPTE are not material.

8. Revenue Expenditure Funded from Capital under Statute (formerly known as deferred charges)

These charges represent expenditure which may properly be capitalised but which does not represent tangible fixed assets. Charges shown in these accounts represent capital grants to the Merseyside Passenger Transport Executive. Balances are to be written out of the accounts in accordance with the Code of Practice on Local Authority Accounting, as are deferred charges arising in the year.

9. Deferred Liabilities

These liabilities relate to transferred debt that was outstanding as at 31 March 1986 when Merseyside County Council was abolished. The Authority’s share of the debt was included in the Local Government Re-organisation (Debt Administration) (Merseyside) Order 452/1988.

10. Government Grants and Contributions


Where the acquisition of a fixed asset is financed either wholly or in part by a government grant or other contribution, the amount of the grant or contribution is credited initially to the government grants-deferred account. Amounts are amortised over the useful life of the asset to match the depreciation charged on the asset to which it relates.
For 2008/09 the Department for Transport continued the practice of providing a Special Rail Grant direct to the Authority to prevent the extra costs of rail privatisation falling upon the Council Taxpayer. This grant was paid over to the Executive to finance liabilities arising from two rail franchise agreements made in accordance with the Railways Act 1993. Government grant was also received to cover additional costs arising from the National Concessionary Travel Scheme.

11. Leases


Rentals payable under operating leases are charged to revenue on an accruals basis.
As at 31 March 2009 all finance leases had expired.

12. Reserves and Provisions


The Authority sets aside reserves and provisions in order to meet likely future liabilities. These reserves and provisions are disclosed as separate balance sheet items and are detailed in the notes to the balance sheet.

Merseyside Integrated Transport Authority
Statement Of Accounting Policies (Cont'd)

13. The Revaluation Reserve and Capital Adjustment Account

It has previously been possible to write-off revaluation decreases to this reserve, even when there is no positive balance against an asset to mitigate the decrease. From 1 April 2007 this is no longer the case. Revaluation decreases will only be permitted to be written off to the Revaluation Reserve where there is a balance on the reserve, in relation to the specific asset, against which the decrease can be applied. Where there is no such balance, or the decrease exceeds the balance, the difference is charged to the Income and Expenditure account. As legislation does not permit revaluation losses to be charged to the general Fund, the charge is reversed by crediting the Statement of Movement on the General Fund Balance and debiting the Capital Adjustment Account.

For the group accounts, the Executive’s Revaluation Reserve balance remains unaffected by the changes introduced by the Local Government SORP.

14. Use Made of Capital Receipts


All capital receipts are generally utilised during the year in which they are received. In the case of the reserved proportion, receipts are used to reduce the need for loans that are covered by credit approvals (thereby effectively repaying debt). The usable part of the capital receipts are used to finance new capital expenditure.

15. Borrowing


Supported borrowing is used to partly finance capital expenditure during the year and to reduce contractual repayments to an MRP level.
The annual charges arising from prudential borrowing are not permitted to fall upon the Local Council Tax and are therefore met from within the approved levy. Efforts are made each year to ensure that a budgetary savings programme is in place to at least offset the cost of prudential borrowing.

16. Investments


As at 31 March 2009 the Authority had no investments other than surplus monies held on short-term deposit. Surplus MPTE monies are on-lent to the Authority, interest free, to permit bulk placements on the money market, thereby maximising investment opportunities and returns to Merseytravel.

17. Stocks and Stores


Stocks and Stores are maintained covering such items as fuel, uniforms and operational equipment. They are included in the balance sheet using a calculated average price of movements during the year.

18. Creditors


Provision has been made for known liabilities, committed expenditure, goods received and work carried out by 31 March 2009.

19. Debtors

Provision has been made for debts due at 31 March 2009. Where the actual amount has not yet been determined, the amount due has been estimated on the basis of the latest available information. Following the requirement of FRS26, where debtors are to be considered both individually and collectively for impairment, a provision has been made against debts where the recovery is doubtful, the net amount being shown in the Balance Sheet.

Merseyside Integrated Transport Authority
Statement Of Accounting Policies (Cont'd)

20. Central Administration Costs


Central Administration Costs incurred by the Passenger Transport Executive are apportioned at the end of the year on the basis of both time allocation for salaries and unit usage for certain other costs. A proportion of these costs are recharged to the Authority.

21. Tunnels Surplus/Deficit


From July 2004 the Tunnels Act 2004 permits the Authority to link and raise tolls in line with the RPI Index. Should a surplus arise, powers exist that allow the Authority to utilise those surpluses by transferring monies into the Authority’s General Fund to be utilised for LTP purposes. With careful management it is intended that, at year-end, the Tunnels Reserve and Renewals Fund shall not be permitted to fall below £2.5m. In the event that funds do fall below the £2.5m threshold, budgetary provision in the following year will be made to restore the level to £2.5m.

22. Future Liabilities


The Authority has to make provisions in the Accounts in respect of repayment of residual debt for both Airport and Bus assets that have transferred to Liverpool Airport Ltd (now know as John Lennon Airport) and to the bus company formerly known as Merseyside Transport Limited (MTL) respectively. In addition the Authority will provide capital grants to the Passenger Transport Executive to finance outstanding contractual commitments.

23. Substance over Form Concept

The Accounting Code of Practice requires, in the spirit of FRS5, compliance with the “substance over form” concept. This concept makes it obligatory for local authorities to include in their accounts details of assets acquired with spending powers that they otherwise would not have had by use of unconventional finance. In accordance with the requirements of the “substance over form” concept, it can be stated that all the Authority’s capital assets have been acquired by using conventional means of finance only.

24. Redemption of Debt

A significant proportion of capital expenditure is financed by borrowing. Provision for the redemption of debt is made in accordance with the minimum revenue provision (MRP) requirements introduced by the Local Government & Housing Act 1989 and continues to exist under Local Government Act 2003. The Authority has resolved to limit its debt repayment to the MRP level, calculated as 4% of the Authority’s Capital Financing Requirement, and to re-borrow any additional contractual repayments.
The regulations relating to MRP require authorities to make a prudent provision for debt, and statutory guidance is provided, outlining what this means in practice. For MRP in 2008/09, authorities have the choice of continuing to use the previous methodology or of adopting the options in the guidance (this choice will also apply in future years in relation to supported borrowing and debt arising before 1 April 2008). For the sake of consistency, the MRP in 2008/09 is calculated using the same methodology as previous years (ie 4% of the total of fixed assets; deferred charges; revaluation reserve; capital adjustment account and grants deferred).

25. Estimation Techniques


A consequence of being required to close the accounts earlier is that less opportunity exists to utilise actual values of transactions falling in the following year to be accrued in the current year’s accounting statements. More reliance is now placed on estimation techniques including:-
Merseyside Integrated Transport Authority
Statement Of Accounting Policies (Cont'd)

(a) Details of capital accruals will be provided/agreed with the appropriate project manager/ supervisor.

(b) Authorisations for Works Unit recharges for the last accounting period of the year are unlikely to be received in time for closing the accounts. All outstanding costs will be recharged to the Tunnels revenue account with appropriate adjustments being made in period one of the following year for wrongly coded capital payments (envisaged to be no higher than £10k in any year).

(c) On occasions there are delays in the receipt of income analysis returns from departments and this could have an impact upon closure of accounts. Where this arises at year end, actual cash banked will determine the volume of income received and previous periods income analysis returns will provide a basis for estimating the proportion by which the cash will be allocated to various accounts.
(d) In the unlikely event that support service recharge timesheets are not available for year end, the previous year’s basis for apportionment will be used for the current year.
(e) Where invoices are not available for gas, electricity, water, etc, accruals will be made on the basis of usage trends noted from previous periods.

26. Financial Instruments


Whether financial instruments be assets or liabilities, they are classified and measured as follows:-
(a) Financial Assets: Loans and receivables
These are defined as financial assets that have fixed or determinate payments and that are not quoted in an active market (eg, bank deposits, temporary loans, etc.) Loans and receivables are carried at amortised cost whilst the Income & Expenditure account bears interest receivable, impairment costs and any gain or loss on derecognition.
(b) Financial Assets: Available for sale
These include equity shareholdings and quoted investments which are carried at their fair value with movements in fair value taken to the Statement of Total Recognised Gains & Losses. Interest and dividends income are charged to the Income & Expenditure Account alongside gains/losses on derecognition.
(c) Financial Liabilities: Non-Trading
This category includes operational creditors and borrowings, and are carried at amortised cost with the Income & Expenditure Account being charged with interest payable.

(d) Financial Liabilities: Trading or derivations with a negative value

Although the Integrated Transport Authority is not expected to take on liabilities for the purpose of trading, the SORP recognises that there might be exceptional instances when the Authority holds liabilities that qualify for this treatment. In such instances, all gains/losses are posted to the Income & Expenditure Account when they arise.
When old debt is repaid and replaced with new debt, a test for “modification” or “extinguishment” is carried out to determine the accounting treatment of loan premiums or discounts on the repaid loans. If repaid loans pass the “modification” test (ie, old debt replaced with new debt via the existing lender; the terms of the loan are not substantially different; the exchange is made on the same day; and the net present values of cashflows between the two loans is plus/minus 10%), premiums/discounts may be amortised over the life of the loan.
Merseyside Integrated Transport Authority
Statement Of Accounting Policies (Cont'd)

Should the repaid loan be deemed to be “extinguished”, the premium/discount will be charged to the Income & Expenditure Account. The Local Authority’s (Capital Financing & Accounting) Regulations 2007 (SI 573) requires premiums/discounts to be amortised, so to avoid conflict with the SORP, the difference between the two is charged to the General Fund and Financial Instruments Adjustment Account.


There were no premiums/discounts prior to 1 April 2007.

“Soft loans” comprise of loans where the Authority makes loans to third parties at rates below the prevailing market rate or are interest-free. The SORP requires a calculation of the “fair value” of the loan (net preset value of future cash receipts discounted using prevailing market rates of interest) and for the difference between the fair value and actual amounts charged to be debited to the Income & Expenditure Account. For the purposes of this accounting policy, the Authority does not hold any “soft loans”.

Loan transaction costs are required, by the SORP, to be applied to adjust the loan’s initial carrying amount and then be amortised over the life of the loan. The Authority’s loans are arranged with the PWLB and fees arising are considered de-minimis and consequently are charged direct to the Income & Expenditure Account in the year in which they arise.
In the context of financial instruments, “impairment” represents the uncollectability of financial assets. For the Authority, this definition covers just “provisions for bad debtors”.
The SORP requires collateral held by the Authority to be disclosed, being financial assets held as security. No such collateral is currently being held by the Authority.
The SORP also requires that a value for financial guarantees be calculated at fair value. Such a calculation requires the value of a financial guarantee, at inception, to be estimated by considering the “probability” of the guarantee being called in. No such financial guarantees are currently held by the Authority.

Merseyside Integrated Transport Authority
Annual Governance Statement
1. Scope of Responsibility

The 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, facilitating the effective exercise of the Authority’s functions and which includes arrangements for the management of risk.

The Authority has approved and adopted a code of corporate governance, which is consistent with the principles of the CIPFAs/SoLACe Framework Delivering Good Governance in Local Government.
A copy of the code will be available on our website or can be obtained direct from Merseytravel. This statement explains how the Merseyside Integrated Transport Authority has complied with the code and also meets the requirements of regulation 4(2) of the Accounts and Audit regulations 2003 as amended by the Accounts an Audit (Amendment) (England) regulations 2006 in relation to the publication of a statement on internal control.

2. The Purpose of the Governance Framework


The Governance Framework comprises the systems and processes, and culture and values, by which the Authority is directed and controlled, and its activities through which it accounts to, engages with and leads the community. It enables the Authority to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective services.
The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives, and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Authority’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.

The governance framework was put in place at the Merseyside Integrated Transport Authority during the year ended 31 March 2009 and operated up to the date of approval of the Annual Report and statement of accounts.

3. Governance Framework

3.1 Corporate Policy and Performance
A 5 year LTP (Local Transport Plan), approved by the ITA and PTE as well as by Merseyside’s Five District Councils and Government, sets out an integrated transport vision for Merseyside along with policies, aims and objectives to fulfil the vision. The LTP is the accepted bidding document upon which the Government provides resources to finance capital investment for public transport and infrastructure. Alongside the LTP we produce and publish a Performance Plan that establishes aims and targets for each of Merseytravel’s services to ensure continuous improvement.
The LTP is reviewed and published annually as the APR (Annual Progress Report). Service reviews are carried out, usually with the help of outside consultants. This document is available on Merseytravel’s web site and is also delivered in summary version to the local community.


Merseyside Integrated Transport Authority
Annual Governance Statement (Cont’d)

3.2 Facilitation of Policy and Decision Making

The LTP is the key statutory strategic transport document. It is augmented by a number of central policy documents covering many areas of the organisation’s activities.
Policy and decision making is facilitated through a hierarchy of management. Generally the Authority approves macro-policies for Management and provides the Executive with the resources to implement those policies. Business areas within the Executive will develop detailed plans/projects and report to Management Team for refinement and approval. These projects will await deliberation and approval by the Executive and Authority.
The Authority undertakes widespread and detailed consultation exercises to inform the decision making process.


    1. Risk Management

Merseytravel produces both a Corporate Risk Register and a Divisional Risk Register to identify and manage the risks to the achievement of the organisations objectives.

Business and departmental risks are integrated within business plans produced for the organisation. These are incorporated into a Risk Register which allows a range of risks to be identified, including an evaluation of the impact and mitigating factors. The Risk Register, which is to be approved by the PTE and ITA, is a key management tool for ensuring effective delivery of the corporate objectives.
Large scale projects undertake their own specific risk assessment and produce separate risk registers.

3.4 Compliance


The LTP is the central focus of corporate policy, which is ultimately approved by Central Government. All new development is required to comply with the LTP's policies, aims and objectives.
Divisional Plans identify how corporate policies and objectives will be delivered on a divisional basis. Directors and Senior Management receive regular progress reports and directly communicate appropriate management action.
Risk Management is exercised in respect of both delivery dates and financial management in that a degree of over programming is permitted in Merseytravel's Budget to absorb natural slippage (unforeseen events, etc). From a financial perspective, fairly robust estimates are provided to avoid funding problems. In the event of an inadequate provision of funds, Merseytravel has the added security of being able to purposely delay other schemes in the programme.
A Corporate Governance Working Group has been established to identify and promote good practice throughout the organisation.

3.5 VFM Use of Resources


For major investments the Government's funding regime required sight of business cases, projections of patronage, costings, etc. To meet these requirements a substantial amount of research and evaluation is required to ensure VFM.

A Business Planning Process review programme is in place that reflects Merseytravel’s strategic priorities and helps to ensure that proper arrangements exist to secure year on year improvements to services and to meet the governments efficiency agenda.


Merseyside Integrated Transport Authority
Annual Governance Statement (Cont’d)

In addition pressure is exerted on all divisions via corporate set targets for budget reductions to stimulate reassessment of divisional costs and resource use, in delivering corporate aims. Development options are subjected to Management Team review and approval following assessment against corporate goals and resource availability.

3.6 Financial Management
The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), management supervision, and a system of delegation and accountability. Development and maintenance of the system is undertaken by managers within Merseytravel. In particular, the system includes:-
 comprehensive budgeting systems;

 regular reviews of periodic and annual financial reports which indicate financial performance against the forecasts;

 setting targets to measure financial and other performance;

 the preparation of regular financial reports which indicate actual expenditure against the forecasts;

 clearly-defined capital expenditure guidelines; and

 as appropriate, formal project management disciplines.


3.7 The Internal Audit Function
Internal Audit is concerned with the adequacy and effectiveness of systems of internal control and whether they are managed, maintained, complied with and function effectively. To this end, Internal Audit will evaluate controls that promote:-

(i) compliance with policies, plans, laws, regulations and procedures;

(ii) accomplishment of objectives and goals;

(iii) reliability and integrity of information, both financially and operationally;

(iv) economy, efficiency and effectiveness of the use of resources;


  1. safe-guarding of the organisation’s assets.

3.8 Standards


To fulfil its function, Internal Audit operates to standards detailed in the Internal Audit Manual. This meets the standards established by the Code of Practice for Internal Audit issued by CIPFA. The Audit Commission review the work and standards of Internal Audit as part of their annual review of Merseytravel’s financial control. Their opinion is reported in their annual audit letter to the Authority.
3.9 Reporting Process
Internal Audit has been positioned in the Chief Executives Division as this is considered to be the best location to position a governance unit that will be an independent, proactive, suitably authorised and resourced operation to influence and guide the organisation’s governance processes. The Chief Internal Auditor as well as reporting to the Chief Executive/Director General will have unrestricted access to report to the Chair of the Executive Audit Committee, (chaired by a Non Executive Director) and the Chair of the ITA, as appropriate, if he/she believes the circumstances so warrant.
3.10 The Authority has established a Standards Committee that is charged with:-
(a) promoting and maintaining high standards of conduct by Elected Members and Co opted Members of the Authority;
Merseyside Integrated Transport Authority

Annual Governance Statement (Cont’d)

(b) assisting Elected Members and Co-opted Members of the Authority to observe the Authority’s Code of Conduct;

(c) monitoring and keeping under review the Authority’s Code and, where necessary, make recommendations on any required amendments;

(d) advising, training or arranging to train Members and Co-opted Members of the Authority on matters relating to the Authority’s Code of Conduct;

(e) considering guidance issued by the Standards Board on matters relating to the Conduct of Members; and

(f) exercising any other functions conferred upon Standards Committee by law, including the granting of dispensations where appropriate.

(g) carrying out local investigations of allegations of miscount of members following a referral by the Standards Boards.

3.11 Key behaviours for Managers and staff have been produced and widely deployed across the organisation. Key behaviours for Members have also been developed.
3.12 The Year Book displays how Merseytravel is governed and the procedures followed to ensure that decisions are efficient, transparent and accountable to local people. This information is available to staff on the world drive.
3.13 Merseytravel’s Legal and Administration Officer, Secretary to the Executive, has been appointed Monitoring Officer, whose functions include maintaining Merseytravel’s Standing Orders, supporting the Standards Committee and ensuring lawfulness and fairness of decision making;
3.14 The Authority has established a member lead Corporate Development and Audit Committee to consider the organisation’s assurance statements, including the Annual Governance Statement and any actions required to improve it.
3.15 The Authority has a Local Confidential Reporting Code and a Complaint Handling system to receive and investigate any complaints raised.


    1. The Authority has commenced an active Organisational Development Programme that identifies the development needs of members and senior officers in relation to their strategic roles, and seeks to provide support by appropriate training.



    1. The Director of Resources has been approved as the officer with Section 151 responsibilities as stated in the Local Government Finance Act 1972. This includes being responsible to the Authority for ensuring that appropriate advice is given on all financial matters, for keeping proper financial records and accounts, and for maintaining an effective system of internal financial control.





    1. Managers are required to complete a statement of assurance regarding the effectiveness of the internal controls on their critical business systems and wider corporate governance issues.

4. Review of Effectiveness


The MITA has responsibility for conducting at least annually 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 the Senior Management within the Authority, who have responsibility for the development and maintenance of the governance environment, supported by Internal Audit as described above, the comments made by the external auditors and other review agencies and inspectorates.
The review is an aggregation of ongoing processes and one-off specific exercises.

Merseyside Integrated Transport Authority
Annual Governance Statement (Cont’d)



  • The Authority’s Business Planning and Performance Management processes make a significant contribution to the review process. This aligns divisional and corporate objectives and requires regular reviews of key actions designed to achieve those objectives. The process incorporates high level reporting, which highlights those areas where objectives are at risk and facilitates the direct communication of action for rectification.




  • Internal Audit allocates significant resource to reviewing the Authority’s Critical Financial Systems and in its Annual Internal Audit Report to the Authority provides an opinion on the overall system of internal control. This report provided assurance that no significant control issues had been identified through the work of Internal Audit during the year.



  • The Corporate Governance Working Group receive reports on the work undertaken in reviewing the internal control process and agree action plans to address weaknesses and ensure continuous improvements.





  • Management Team receives and reviews external reports from a variety of sources that informs them on the position of the Authority in achieving its objectives and the internal control framework.




  • A Risk Management Forum is responsible for developing the organisation’s approach to embedding risk management into the structure and processes used by Merseytravel.




  • The Audit Commission undertakes specific annual reviews of the organisation and report at the highest level. Recommendations are agreed and support the organisations continuous improvement.

We have been advised to the implications of the result of the review of the effectiveness of the Governance Framework by the Corporate Governance Working Group, and a plan to address weaknesses and ensure continuous improvement of the system is in place.

5. Significant Governance Issues
No significant governance issues have been identified in the system of internal control and governance framework.

We will continue to work to identify any further enhancements to our governance arrangements.


Signed …………………………………………………………….

(Chair of Authority)

Signed …………………………………………………………….

(Chief Executive & Director General)

Signed ……………………………………………………………

(Director of Resources)

Dated ……………………………………………………………



Merseyside Integrated Transport Authority




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