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Head Ofce Harbour House The Quay, Harwich Essex, CO12 3HH T +44 (0)1255 243030 E [email protected] www.hha.co.uk @harwichhaven ISSN 2515-0103 Harwich Haven Authority Annual report and accounts 2016

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Page 1: Head Oice Harbour House The Quay, Harwich Essex, CO12 3HH · Head Oice Harbour House The Quay, Harwich Essex, CO12 3HH T +44 (0)1255 243030 E enquiry@hha.co.uk @harwichhaven ISSN

Head OfficeHarbour House

The Quay, Harwich

Essex, CO12 3HH

T +44 (0)1255 243030

E [email protected]

www.hha.co.uk

@harwichhaven

ISSN 2515-0103

Harwich Haven AuthorityAnnual report and accounts 2016

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4 About us

6 STRATEGIC REPORT

6 Statement by the Chairman

8 Statement by the Chief Executive

16 Keyfinancialindicators

18 Keyperformanceindicators

20 MeettheBoard

23 Meet the Executive team

24 REPORT OF THE BOARD

34 Independentauditor’sreport

35 FinancialStatements

Annual report and accounts 2016Contents

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Harwich Haven is a major trade gateway,

which has been fuelling the UK’s economy

since 1863. With five ports facilities operating in the Haven area, our marine services

operate 24 hours a day, 365 days of the year.

Structure and governance

Harwich Haven Authority is a trust port, which

isastatutorybodygovernedbylegislationandmanagedbyanindependentboard.

Ourtrustportstatusmeanswedonothaveshareholders,donotreceivepublicfundingandoperatingsurplusesarereinvestedbackintotheorganisationforthebenefitofourstakeholders.Ourstakeholdersinclude:employees,customers,localresidents,businesses,communitygroups,andlocalandnationalGovernmentagencies.

OurjurisdictioncoverstheRiverStour,thelowerpartoftheRiverOrwell,HarwichHarbouranda12nauticalmilestretchofsealeadingintotheHaven.

Vision

We aim to be an exemplary

trust port offering world class services, working with all stakeholders for a flourishing Haven.

Strategic objectives

01 To sustain leading standards for safety of navigation.

02 To deliver long term financial sustainability.

03 To work in partnership with others to protect and

improve the environment within the Haven.

04 To be proactively engaged and work in partnership

with all stakeholders.

05 To maintain a continuous focus on improving

customer service.

06 To proactively develop our world class capability to

handle future vessel and port developments.

07 To develop and maintain a high-performing team.

08 To engage with, and lead where appropriate,

development projects in the Haven.

09 To explore commercial opportunities in partnership

with others in the Haven.

10 To raise the Authority’s profile, communicating more effectively with our stakeholders.

11 To invest in our assets to support our strategic goals.

Harwich Haven AuthorityAbout us

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IampleasedtoreportthatHarwichHavenAuthorityreturnedapositiveperformancein2016,despiteareductioninthenumberofvesselscallingatHavenPorts.Thecashflowgeneratedenabledustoreduceborrowingsby£5.4mandcommenceafive-yearprogrammeofcapitalinvestmentinkeyareasofthebusiness.TheBoardalsoworkedcloselywiththeExecutiveteamduring2016reviewingbusinessplanningprocessesandrefiningtheorganisation’sfive-yearstrategicgoals.

TheBoardrevieweditspositionwithregardtotrustportstatusafterworkingwiththeDepartmentforTransportonitsTrustPortStudy.TheBoard’sviewisthatthecurrentmodelisbestsuitedtoHavenPortsoperations.However,beforemakingaformaljudgementonourstatus,wewillseektheviewsofourstakeholdersviaarobustconsultation.

DuringtheyearcompetitionforthebusinessofcontainervesseloperatorsvisitingPortofFelixstoweincreased.Thiscompetitioncamefromnear-continentalportsandfromthenewfacilityontheriverThames.TheAuthority’sstrategyistoretainandgrowcurrenttradingrelationshipssafely,consistentlyandefficiently.Iamdelightedtoconfirmthatweachievedthisin2016.WeimprovedonouralreadyexcellentnavigationalsafetyrecordandalsomaintainedourinvestmentintheenvironmentalstewardshipoftheStourandOrwellestuaries.

Stakeholderengagementwasakeyorganisationalfocusduring2016andwereviewedandstrengthenedourstrategy.Particularemphasishasbeenplacedonengagementwithourlocal

Statement by the Chairman

Haven Ports play a critical role in underpinning economic

growth in the East of England and the wider UK economy.stakeholdersandanannualpublicmeetingandnewwebsitewillsupportthisobjectiveduring2017.

In2016wecompletedthefirstoftwostagesofrefurbishmentplannedforHa’pennyPier.ThisVictorianstructureisapopularcentrepieceofHarwichQuayandasurveyrevealedtheneedforsomeseriousstructuralrepairstoensureitscontinuedpresenceontheHarwichwaterfront.Weplannedtherefurbishmentoutsideofthemaintouristseasontominimisedisruptiontothepublic.Thefirstphaseofthe£340,000projectwascompletedonscheduletoenablethereopeningofthePierintimeforthehugelypopularNewYear’sEvefireworksdisplay.Thesecondphaseoftherepairswilltakeplaceintheautumnof2017.

Finally,IwouldliketorecordmythankstothemanagementandemployeesoftheAuthorityformaking2016asuccessfulyear.OurpeopleareourstrengthanditistheywhoensurethatwekeeptradeflowingthroughtheHavenPorts24hoursaday,365daysayear.

J Keohane

Chairman25 May 2017

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STRATEGIC REPORT

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Safety of navigation

AllourmarineoperationsaregovernedbythePortMarineSafetyCode(PMSC).TheAuthority’scompliancewiththePMSCisexternallyauditedeachyear.Nonon-complianceswereidentifiedinthe2016auditandtheAuthoritysubmittedconfirmationofcompliancewiththePMSCtotheMaritimeandCoastguardAgency.

Results and finances

Overall,numbersofvesselmovementsatHavenPortsdecreasedin2016to13,268,primarilycausedbyanincreaseinthenumberoflargercapacityvesselscallingatthePortofFelixstowe.Increasingnumbersofmega-sizedvessels(18,000teuandlarger)arereplacingthepreviouslylargernumberofsmallercapacityvessels.Ourtwosourcesofrevenue,pilotageandconservancyproducedaconsolidatedrevenueof£24.5million(2015:£24.3million).

Thisrevenuedeliveredasurplusbeforetaxationof£5.9million(2015:£4.2million).Theincreaseinsurpluswasdueinlargetolowerthanexpectedmaintenancedredgingexpenditureduring2016.Surpluswasusedtoserviceoutstandingborrowing,makecontributionstoourpension

fundandtoinvestinmaintainingandimprovingessentialassets.

TheAuthorityrepaidloanstotalling£5.4million.Thisincludedearlyrepaymentofanoutstandingloanof£2.7millioninordertomaximisethereturnon cash reserves.

MajorinvestmentsduringtheyearincludedtheinstallationofanewVesselTrafficServicessystemtoupgradetheprovisionofthisfrontlineservice,newpilotlaunchpontoonsandITinfrastructureimprovements.

ThefinancingofpensionobligationsremainedasignificantcommitmentfortheAuthority.Thedeficitrecoveryagreement,whichaddressespastserviceobligations,requiresanannualpaymentof£1.11millionperyearoverandaboveournormalemployer’scontributionsintothepensionscheme.Disappointinglyvolatileeconomiccircumstancesinthesecondhalfof2016gaverisetoanincreaseintheestimatedlossofourdefinedbenefitsscheme.TheBoardwillbeconsideringtheconsequencesofthisduring2017/18.

TheAuthorityiskeentoprovidestakeholderswithaclearerunderstandingofourfinances.Therefore, for our 2016 accounts we have

Statement by the Chief Executive

The Authority continued to focus during 2016 on safety of navigation

for vessels visiting Harwich Haven, environmental stewardship, health

and safety and customer service. Ensuring we deliver a safe and

efficient service remains a key objective for staff across our vessel traffic services, pilot and launch crew teams.

“Harwich Haven is vital to the UK’s prosperity, and we’re its proud guardian”

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STRATEGIC REPORT

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includedinformationaboututilisationofsurplusesgeneratedandhowcumulativereservesareallocatedforfutureuse.

Stakeholders

During2016wereviewedourstakeholderengagementstrategytoensurekeyorganisationalmessagesweretargeted,andmaderelevantto,specificstakeholdergroups.Wealsodeployedinternalresourcetostrengthenourprofileandfurtherdevelopstakeholderrelations.

Afterathoroughauditofinternalandexternalcommunicationswecommissionedanewwebsiteandextendedourpresenceonsocialmediachannelstofurthermeettheneedsofourstakeholdergroups.

Wecontinuedtobuildonouralreadyestablishedpartnershipswithkeylocalbodiessuchasdistrictandlocalcouncils,HavenGatewayPartnership,leisurevesselorganisations,localschoolsandbusinesses.FormalliaisonwithalloftheportfacilitieswithintheHavenwasmaintainedonaroutineandregularbasis.

The Authority continues to support a number of

localcharitableorganisations,eitherdirectlyorthroughthePortCommunityFund.

Weenjoyedparticularengagementsuccessduring2016withthelocalleisurevesselcommunity.Throughtheprovisionofinformation,educationandengagement,stakeholdersinthethrivingleisurevesselsectorwereabletosafelyenjoythewatersoftheHavenPorts,estuariesandapproachesalongsideabusycommercialmaritimethoroughfare.

Haven Ports trade

TradetoandfromtheportfacilitieswithintheHavenPortswasstableduring2016.ThePortofFelixstoweremainsthelargestcontainervesselterminalintheUKandhandlesaneverincreasingnumberofMegaVessels(18,000teuandlarger).

Thecontainervesseltradegloballyhascontinuedtosufferfromaproblemofexcesssupplyoverdemandandthishasimpactedadverselyonfreightrates,causingsignificantfinancialdifficultiesforanumberofvesseloperators.ThemostseriouscasualtyofthiswasthebankruptcyofHanjinShipping,Koreannationalflagcarrierandtheseventhlargestglobalcontainervesseloperator.

Othervesseloperatorshavetakenthedecisiontoreinforcetheirbusinessesthroughmergersandacquisitions.Virtuallytheentireglobalfleetofcontainervesselsisnowcontainedwithinthreevesseloperatingalliances,whichhasimpactedupontheregularportsofcallofmanyindividuallines.

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STRATEGIC REPORT

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ThePortofIpswichhadanexcellentyearhosting743vesselcallsandhandlingmorethan1milliontonsofgrainexports.TheAuthorityplayeditspartindeliveringanincreasingnumberofIpswich-maxsizedvesselstohandlethisgrowthinvolumes.

HarwichInternationalPortmaintaineditsstrongpositionintheshortseaunitisedcargotradecarriedonthetwicedailyfreightonlyroutebetweenHarwichandRotterdamandthetwicedailyRo-PaxserviceservedbytheStenaBritannicaandStenaHollandica.ThesetwosuperferriesoperatetheonlyregionalpassengerservicetotheNetherlands.

HarwichNavyardhascontinuedtooperateitsRo-RoservicetotheBalticviaRotterdamandMistleyhasremainedbuoyantintheshortseamini-bulkcargobusiness.

Environment

TheenvironmentalstewardshipoftheHavenPortsremainsakeypriority.Ourcorefocusistobalancecommercialoperationsagainsttheimpacttheseactivities have on the environment.

Workingcloselywithlocal,regionalandnationalbodiesenablesustomonitoranyenvironmentalchangewithintheHavenPortsandagreemitigationstoaddressemergingissues.OurareaofjurisdictioniscoveredbyanumberofenvironmentaldesignationssuchasSiteofSpecialScientificInterest(SSSI)andSpecialProtectionArea(SPA)bothofwhichbringwiththemenhancedenvironmentalobligations.

OtherpartnershipswithbodiessuchasNaturalEngland,EnvironmentAgency,RSPBandSuffolkandEssexWildlifeTrustshelpusinourendeavours.

Maintenancedredgingoftheharbourisoneofourbiggestitemsofexpenditure.Itisalsooneoftheactivitieswhichhasapotentiallysignificant

environmentalimpact.Theimmediateimpactontheestuariesandforeshoreofremovingsedimentfromtheharbourisconstantlyandrobustlymonitoredandwhereappropriate,mitigationsareimplemented.

The quantity of CO2producedbyourdredgingoperationsiscloselymonitoredandreported.TomitigatetheimpactofCO2 on the environment,

theAuthorityhasappliedtotheMarineManagementOrganisation(MMO)torelocatethedisposalsitefordredgespoiltoapositionclosertotheharbour.Thiswouldreducethedistancetravelledbythedredgeroneachpassagetodisposeofspoilandwould,ifgrantedbytheMMO,reducetheCO2 by 1,000t which equates to a

reductionof14%.

Challenges and opportunities

TheAuthorityisreactivetotheoperationalbusinessneedsofportfacilitiesintheHaven.Ourtaskistoengagecloselywitheachportfacilitytoensurethattheservicesweprovideaccommodatetheiroperationalneedsandobjectives.

Workingwith,andaddressingtheneedsof,customerswasmostprominentduring2016asmorecarriersintroducedmega-vesselsof400minlengthintothehighlycompetitiveAsia-Europe-Asiaservices.TheAuthorityledtheindustryindevelopingsafeoperatingprocedurestohandleandmanagethesafetransitsofthesehugevessels,tomatchthePortofFelixstowe’sinvestment in infrastructure ashore.

ThistrendissettocontinueandtheAuthorityisplanningforthefuturetoensurethatourapproachchannelsandtrafficmanagementinfrastructureiscapableofhandlinganincreasingnumberoftheseships.Ensuringthesafetransitofthesevesselsalongsideothercommercialandleisurevesselsisofparamountimportance.

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STRATEGIC REPORT

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FollowingthevotetoleavetheEuropeanUnion,weareworkingcloselywiththeBritishPortsAssociationandotherportstopressforexitagreementsthatensurefrictionlesspassageoftradethroughUKports,butspecificallythroughHavenPorts.ThisissuepotentiallyaffectstheshortseatradesandthefreightRo-RoandpassengerferrybusinessesintheHaven.

Finally,theAuthorityhasembarkeduponaninitiativetoimproveandenhancepublicawarenessoftheroleHavenPortsplayinunderpinningeconomicgrowth.

Approximately95%ofalltradeenteringandleavingtheUnitedKingdomdoessothroughports,andthisoperationislargelyinvisibletothewiderpopulation.Portsthemselveshaveatasktoeducatethepublictothisunseenindustry.WeareplayingourpartbyraisingtheprofileoftheAuthorityandthewiderroleportsplayinthesupplychainofeverythingweuseorconsumeonadailybasis.Wearedoingthisbyraisingourownprofileandopeningouroperationstomorevisitsbymembersofthepublic,hostingpublicmeetings,deliveringpresentationstolocalorganisations,increasingourdigitalpresenceandworkingwithlocalschoolstoraiseawarenessoftheimportanceofourindustry.

Strategy

The Harwich Haven Authority Executive team

hasworkedcloselywiththeBoardtoreviewanddevelopbusinessplanning,strategyandagreefiveyearstrategicgoals.

Finally,IwouldliketoaddmythankstothoseofthechairmaninrecognitionofthehugeeffortsthattheteamattheAuthorityhasmadeduring2016.Bothmanagementandemployeesareproudofwhatwedo,everydayoftheyear,toensureourcustomersreceivetheveryhigheststandardsofservice.

Neil Glendinning

Chief Executive25 May 2017

Five year strategic goals:

01 To sustain leading standards for safety of navigation.

02 To deliver long term financial sustainability.

03 To work in partnership with others to protect and improve the environment within the Haven.

04 To be proactively engaged and work in partnership with all stakeholders.

05 To maintain a continuous focus on improving customer service.

06 To proactively develop our world class capability to handle future vessel and port developments.

07 To develop and maintain a high-performing team.

08 To engage with, and lead where appropriate, development projects in the Haven.

09 To explore commercial opportunities in partnership with others in the Haven.

10 To raise the Authority’s profile, communicating more effectively with our stakeholders.

11 To invest in our assets to support our strategic goals.

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STRATEGIC REPORT

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Key financial indicatorsOur two sources of revenue, pilotage and

conservancy produced a consolidated revenue

of £24.5 million (2015: £24.3 million) in 2016.

Therevenuedeliveredasurplusbeforetaxationof£5.9million(2015:£4.2million)whichwasusedtoserviceoutstandingborrowing,makecontributionstoourpensiondeficitrecoveryplanandtoinvestinmaintainingandimprovingessentialassets.

Financial Highlights (£) 2016 2015 2014Turnover n 24,514,000 24,375,000 22,089,000Surplusbeforetaxationn 5,909,000 4,249,000 3,043,000

5.909million 4.249

million 3.043million

24.375million 22.089

million

24.514million

Boardingand landingfees

charged to operators to whom the Authority provides launch services

Pilotage fees

charged to vessels that require a pilot to enter and leave the Haven

Conservancy dues

charged to vessels entering and leaving the Haven to support channel maintenance and safe navigation

Pilotage Fees 24%

Boarding & Landing Fees 4%

Conservancy Dues 72%

SeefullFinancialStatementsonpage35.1817

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Key performance indicators

Arrivals 2016 2015 2014 Vessels 4,778 5,268 5,624

Tonnage 203,503,000 202,043,000 194,932,000

Navigational safety 2016 2015 2014 Vesselmovements 13,268 14,304 15,667 Level1(major)navigationalincidents 0 0 0

Level2(minor)navigationalincidents 4 5 2

Level3(hazardous)navigationalincidents 31 24 15

Pilotage service 2016 2015 2014 Pilotageacts 5,264 5,445 5,835

Tonnagepiloted 260,007,000 260,212,000 240,209,000 Delayscausedbypilotavailability 0.78% 1.41% 0.87% Externalboardingandlandingacts 2,289 2,197 2,062

Dredging 2016 2015 2014 Disposedvolume(m3) 2,424,089 3,364,900 2,830,136

Environmental 2016 2015 2014 Enginefueluse(litres) 2,805,274 4,040,198 2,697,765 Gasuse(kWh) 567,082 474,424 370,691 Electricityuse(kWh) 366,638 367,755 422,046 Wateruse(m3) 1,341 1,419 1,372 CO2 output (tonnes) 7,907 11,646 8,448

Wastegenerated(kg) 66,605 78,838 77,920

People 2016 2015 2014 Employees 110 105 103

Accidents 12 7 12 -Ofwhichwerelosttimeaccidents 3 1 3

-Ofwhichwerereportable 2 0 1

2019

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Harwich Haven AuthorityMeet the Board

Chairman, Non-executive Board member

Jim Keohane

Jimhas30years’experienceintheenergyindustryandworkedextensivelyontheprivatisationandrestructuringoftheelectricityindustryinthelate1980s.JimwassubsequentlyadirectoratEastMidlandsElectricityandlater,EasternElectricity.From2001heservedaneight-yeartermasanon-executivedirectorattheCivilAviationAuthority(CAA)andwasDeputyChairmanforthefinaltwoyears.Sinceearly2009hehasservedasanon-executivedirectoratOFGEM,theGasandElectricityRegulator.Inearly2014healsobecametheSeniorIndependentDirectoroftwoGovernment-ownedenergycompanies,themainroleforwhichistocontractforallfuturelowcarbonelectricitygenerationintheUK.

Non-executive Board member Member: Audit and Risk Committee

Geoff Benn

Geoffhasspentallhisworkinglifeinservicebusinesses.Forthelast30yearshehasworkedataseniorlevelinthehealthandsocialcaresystemincludingStrategicPlanning,PMI,ElderlyCare,Acute,DiagnosticandCommunitycare.Heisaspecialistincreatinginnovative,viable,commercialsolutionsandhasdesignedandoperatedseveralsuccessfulpublic/privatesectorjointventures.Nowsemi-retiredhecontinuestospeakatconferencesonthesustainabilityanddevelopmentofhealthcaresystems.

Deputy Chair, Non-executive Board member Member: Remuneration and Nominations Committee, Audit and Risk Committee

Baroness Scott

RosScotthashadmanyyearsofexperienceinlocalgovernment,servingondistrictandcountycouncilsinSuffolkbetween1991and2005andservinginorganisationssuchastheLocalGovernmentAssociationTransportExecutiveandtheAuditCommission.Shealsoservedasanon-executivedirectoroftheLloydsRegister.In2000shewasraisedtothepeerageasBaronessScottofNeedhamMarket.IntheHouseofLordsshewasaLiberalDemocratspokespersononTransportandCommunityandLocalGovernment.

Non-executive Board member Member: Audit and Risk Committee (chair)

Richard Bint

RichardwastheSeniorPartnerofPKF(UK)LLP,theeighthlargestfirmofaccountantsintheUK.HewasalsoamemberoftheBoardofPKFInternational,themanagementcompanyofthefirm’sinternationalnetwork.HehasheldanumberofseniorpositionsintheaccountancyprofessionincludingbeingamemberoftheCounciloftheInstituteofCharteredAccountantsinEnglandandWales(ICAEW)andoftheAuditingPracticesBoardoftheFinancialReportingCouncil

RichardretiredinMarch2015andiscurrentlyalaymemberoftheCourt(thegoverningbody)oftheUniversityofDundee,Vice-ChairmanoftheAuditCommitteeoftheICAEWandaNon-ExecutiveDirectorofEstuaryHousingAssociationLtd.

Non-executive Board member Member: Remuneration and Nominations Committee (Chair)

Bob Crighton

Bobspent20yearsintheRoyalNavy,servingatsea–fromMinehunterstoAircraftCarriers–aswellasholdingstaffappointmentsashore,includingwithintheMOD.WhilstintheNavyhewascalledtotheBarandthereafterworkedforaninternationalCitylawfirmfor18yearsasamarinelawyerspecialisingincollisions,salvageandport-relatedwork,representingownersandunderwritersathomeandabroad.From2007to2015BobworkedforthePortofLondonAuthorityasSecretaryandGeneralCounselresponsibleforallregulatorymattersrelatingtonavigationandconservancy.AnOceanYachtmaster,BobisalsoRYAPrincipalathislocalsailingclub.

Non-executive Board member Member: Safety, Health, Environment & Security Committee

Gareth Llewellyn

GarethistheChiefExecutiveoftheDriverandVehicleStandardsAgency.HehadpreviouslyheldexecutiveroleswithNetworkRailwherehewasExecutiveDirector,Safety,TechnicalandEngineering,AngloAmericanwherehewasGlobalHeadofSafetyandSustainableDevelopment,andNationalGridwherehewasGlobalDirectorforSafety,Health,EnvironmentandCorporateResponsibility.HespenthisearlycareerwiththeEnvironmentAgencyandisaqualifiedmarinechemist.Garethhasheldanumberofnon-executivedirectorroles.HefloatedBiffaplcwherehechairedtheBoardSHECommitteeandestablishedtheDfT’sRenewableFuelsAgencywherehechairedtheBoardAuditandRiskCommittee.Hehasalsobeenanon-executivedirectoroftheRailSafetyandStandardsBoard,NationalGridPropertyandtheUKBusinessCouncilforSustainableEnergy.GarethalsoservedathreeyeartermasChairoftheBoardoftrusteesatthenot-for-profitCL:AIRE.

Non-executive Board member Member: Remuneration and Nominations Committee

Dr Karen Purnell

Karenhasextensiveexperienceintheshipping,maritimeandenvironmentalsectors,havingworkedforITOPFLtdformorethan20years.Priortothatsheworkedforaconsultancyspecialisinginremediationofcontaminatedland.DuringhertimewithITOPFLtdKarenhasworkedalongsideawiderangeofstakeholdersfromtheprivateandpublicsectorsworldwide,providingtechnicalsupportandadviceonenvironmentalandeconomicdamagefollowingaccidentalspillsofoilandchemicalsfromships.KarenalsoactivelymaintainsadiverseandextensivenetworkofcontactsandisakeensupportoftheSTEMinitiative,providingschoolchildrenwithinspirationastohowtheycanusetheirscientificskillsinthemaritimesector.KareniscurrentlytheManagingDirectorofITOPFLtd,ChairmanoftheITOPF’sBoardofPensionTrustees,aFellowoftheRoyalSocietyofChemistry,amemberoftheInstituteofDirectorsandaShipwright.

Chief Executive, executive Board member Member: Safety, Health, Environment & Security Committee

Neil Glendinning

Neilhasacomprehensiveoperationalexperienceofharbours,pilotageandthemanagementofthesafetyofnavigation.Followingaseagoingcareer,NeilservedwiththeAuthorityasaseniorpilotfortheHavenPortsareabeforetakingupthepostofDeputyHarbourMaster(Operations)in2009.HewassubsequentlyappointedtothepositionofHarbourMaster&MarineManagerinJanuary2012.InMay2014NeilwasappointedChiefExecutive.

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Non-executive Board member Member: Safety, Health, Environment & Security Committee

Keith Winstanley MBE

KeithWinstanleyhasover34years’maritimeexperience,predominantlyintheRoyalNavy,whereheservedineveryclassofwarship,fromminesweepertoaircraftcarrier,andcommandedfour:aminesweeper,twodestroyersandanamphibiouscommandship.HeservedforovertwoyearsastheseniorRoyalNavyofficerintheMiddleEastand,concurrently,astheDeputyCoalitionNavalCommander,commandingaforceof115shipsand35aircraftoperatinginaseaareaof2.5millionsquaremiles.Keithhastaughtandlecturedworldwide,onstrategyandoperationalplanningandhascompletedaresearchfellowshipwithOxfordUniversityintomaritimesecurityandglobalizationinthemaritimesector.HewasmadeaVisitingFellowatOxfordoncompletionofhisfellowship.HeisaDirectoroftwoUK-basedcompaniesandaNon-ExecutiveDirectorofaSocialEnterprisecompanythatfindsemploymentformenandwomenleavingtheUK’sArmedForces.

Harbour Master, executive Board member

Mike Dunn

MikeattendedTrinityHouseNavigationSchoolfrom1981to1986.AfterleavingsixthformhecommencedaCadetshipwithRoyalFleetAuxiliary(RFA)atWarsashCollege.HegainedhisMatesCertificateofCompetencyin1993andaftersevenyears’servicewithRFAhebranchedoutintothecommercialworldworkingforavarietyofcompanies,includingLondonOverseasFreighter,P&OFerries,RockwaterandHollandAmericaLine.HavinggainedhisMaster’sCertificatein1997Mikefocusedhiscareeronpassengerferrieswith12yearscommandexperiencewithbothStenaLineandP&O.In2013MikecameashoreandtookupamanagerrolewithAssociatedBritishPortsasDockMasterHullandGoole.MikejoinedHarwichHavenAuthorityin2015.

Neil GlendinningChief Executive Officer

ProvidingstrategicleadershipofallAuthorityoperationsandanexecutivememberoftheHarwichHavenAuthorityBoardandExecutiveteam.

Mike DunnHarbour Master

Executiveteammemberresponsibleformarineservices,includingengineering,support,VesselTrafficServices,pilotageandlaunchservicesandexecutivememberoftheHarwichHavenAuthorityBoard.

John BrienHarbour Engineer

Executiveteammemberresponsibleforoverseeingandmanagingdredging,hydrographyandfacilitiesmaintenance.

Anthony FletcherBusiness Systems Manager

Executiveteammemberresponsibleforinformationtechnology,businesssupportsystemsandcommunications.

Neil SmartInterim Chief Financial Officer

ExecutiveteammemberresponsibleforallaspectsoftheAuthority’sfinancialreportingoperations.

Meet the Executive team

The structure of our Executive team ensures that we have the necessary skills and

experience to operate a safe and efficient operation.

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Statement of Board responsibility

TheHarwichHavenAuthorityBoardareresponsibleforpreparingtheStrategicReport,theReportoftheBoardandtheFinancialStatementsinaccordancewithapplicablelawandregulations.

Applicablelawrequiresthememberstopreparefinancialstatementsforeachfinancialyear.UnderthatlawthemembershaveelectedtopreparethefinancialstatementsinaccordancewithapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice),includingFinancialReportingStandard102(FRS102),‘TheFinancialReportingStandardapplicableintheUKandRepublicofIreland’.

UnderapplicablelawtheBoardmustnotapprovethefinancialstatementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsoftheAuthority.

In preparing financial statements, the Board is required to:

• Selectsuitableaccountingpoliciesandapplythemconsistently.

• Makejudgementsandestimatesthatarereasonableandprudent.

• Statewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements.

• PreparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethattheAuthoritywillcontinueinbusiness.

TheBoardisresponsibleforkeepingaccountingrecordsthataresufficienttoshowandexplaintheAuthority’stransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionoftheAuthority.ThisenablesthemtoensurethatthefinancialstatementscomplywiththeHarboursAct1964whichrequiresthatthefinancialstatementsbepreparedinaccordancewith the requirements of the Companies Act

2006.TheyarealsoresponsibleforsafeguardingtheassetsoftheAuthorityandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

Disclosure of information to auditors

TheBoardMemberswhowereinofficeatthedateofapprovalofthesefinancialstatementshaveconfirmed,asfarastheyareaware,thatthereisnorelevantauditinformationofwhichtheauditorisunaware.TheBoardhastakenallstepsthatoughttohavebeentakenasaBoardinordertobeawareofanyrelevantauditinformationandtoestablishthattheAuthority’sauditorsareawareof that information.

The Board

OurBoard conductthemselveswithin,andmakedecisionsbasedon,eightbehaviouralvalues,whichhavebeenadaptedfromTheNolanPrinciples.

Boardmembersregularlyreceivedetailedfinancialandoperationalinformationtoallowthemtomonitorthekeyareasofthebusiness.TheBoardalsoreceivesbriefingsfromseniormanagersonvariousaspectsoftheAuthority’sactivities.

TheBoardisconstitutedoftenmembers,twoexecutivemembersandeightpart-timenon-executive members. The Secretary of State for

TransportappointstheChairmanandfournon-executivemembersandtheAuthorityappointsthreenon-executiveandtwoexecutivemembers.From time to time the Authority appoints

associatedmemberswhohavetherighttoattendmeetingsbuthavenorighttovoteatthem.

Report of the Board

The Chairman is responsible for the leadership and governance of the

Board, ensuring that it operates effectively, whilst providing appropriate challenge to management.

Members of the Board 2016

J Keohane Chairman

Baroness R Scott Deputy Chair

G BennAssociateboardmember(appointed1January2016)Non-executivemember(appointed1July2016)

R Bint Non-executivemember(appointed1January2016)

BCrighton Non-executivemember

GLlewellyn Non-executivemember(appointed1January2016)

DrKPurnell Non-executivemember

PRoland Non-executivemember(retired30June2016)

KWinstanleyMBE Non-executivemember(appointed1January2016)

CaptainNGlendinning Executive member

Captain M Dunn Executive member

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The Board attends six formal meetings each year. In

addition to this, they also attend a number of committee

meetings and workshops throughout the year.

Board meetings and attendances

26/1 17/3 19/5 21/7 22/9 17/11

J Keohane • • • • • • 6/6

Baroness R Scott • • • • • • 6/6

G Benn • • • • • • 6/6

R Bint • - • • • • 5/6

BCrighton • • • • • • 6/6

GLlewellyn • • • • • • 6/6

DrKPurnell • • • • • • 6/6

PRoland • • • N/A N/A N/A 3/3

KWinstanleyMBE • • • • • • 6/6

CaptainNGlendinning • • • • • • 6/6

Captain M Dunn • • • • • • 6/6

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Audit and Risk Committee

Three meetings held in 2016

TheAuditandRiskCommitteecomprisesthreenon-executiveMembersoftheBoard.During2016thecommitteewaschairedbyMrRBint.TheCommitteereviewstheAnnualReportandAccountsandrecommendsacceptancebytheBoard.TheCommitteealsoreviewedthedraftbudgetfor2017andwasabletorecommendtotheBoardthatthe2017CapitalandRevenueBudgetswereaccepted.TheCommitteecontinuesto work with the Chief Executive on an

updatedriskregisterensuringallrisksareadequatelyassessedandreviewedonaregularbasis.TheChiefExecutiveandtheChiefFinancialOfficerareinvitedtoattendmeetingsoftheAuditandRiskCommittee.

Remuneration and Nominations CommitteeTwo meetings held in 2016

The Remuneration Committee comprises

threenon-executiveMembersoftheBoardandwaschairedthroughouttheyearbyMrRCrighton.TheCommitteeadvisestheBoardontheremunerationoftheChiefExecutiveandreviewstheChiefExecutive’srecommendationsinrespectoftheseniormanagementteamremuneration.TheCommitteealsomakesrecommendationstotheBoardinrespectoftheremunerationofnon-executiveBoardMembers.

Safety, Health, Environment & Security CommitteeTwo meetings held in 2016

TheSafety,Health,EnvironmentandSecurity Committee comprises two

BoardMembersandwaschairedduring2016byMrKWinstanley.TheChiefExecutive, Harbour Master, Deputy

HarbourMaster,HarbourEngineerandtheSafetyandEnvironmentManagerattendbyinvitation.ThemainpurposeoftheCommitteeistoanalysereportsonOccupationalHealth,Safety,NavigationalSafetyPerformance,EnvironmentalPerformanceandSecurity–inparticularCyberSecurity–andmakeappropriaterecommendationstothefullBoard.

Board committees

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InaccordancewiththeupdatedguidancetothePMSCtheAuthorityhasasafetyPlantodemonstratehowthestandardinthePMSC willbemet:

HarwichHavenAuthorityiscommittedtodischargingallofitsstatutorydutiesandtoremainingopen,accountableandfitforpurpose.ItsplantomanagethesafetyofmarineoperationsistocomplywithalloftherequirementsofthePMSCandtofollowtheguidanceintheGuidetoGoodpracticeonPortMarineOperations.

• TakeresponsiblecaresothatallwhomaychoosetonavigateintheHavenmaydosowithoutdangertotheirlivesorproperty.

• Takesuchactionthatisnecessaryordesirableforthemaintenance,operationandimprovement or conservancy of the Haven.

HarwichHavenAuthoritywillbaseitspoliciesonaformalassessmentofhazardsandrisksanditwillmaintainaformalsafetymanagementsystemwhichwillensurethatallrisksaremanagedsothattheyareaslowasreasonablypracticable.Itwillemployandengagecompetentstaffandcontractors.IthasappointedaDesignatedPersonwhowillregularlyconductinternalcomplianceauditsinaccordancewiththePMSCandwhowillreportdirectlytotheBoard.

Additionally,independentexternalexpertswillperiodicallyconductanexternalauditandtheexpert’sreportwillbepresentedtotheBoard.TheDesignatedPersonandtheexternalauditorsshallassessintheirreportstheAuthority’sperformanceagainstitsplanofcomplyingwithalloftherequirementsofthePMSCandtofollowingtheGuidanceintheGuidetoGoodPracticeonPortMarine Operations.

Corporate governance

The Board continue to be committed

to the very highest standards of

governance and endeavours to be

compliant with both the principles of

Modernising Trust Ports (second edition) and the UK Corporate Governance Code.

Compliance

Throughout 2016 the Authority was fully compliant with the Port Marine

Safety Code (PMSC). Performance is regularly monitored with guidance

from the “Designated Person” and an annual external audit.

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Riskmanagementandcontrolisanintegralpartofcorporategovernance.TheBoardmakesthemanagementofriskahighpriority.Theeffectivemanagementofriskisparamount;theAuditandRiskcommitteereviewsthecorporateriskregisterateachmeetingandthefullBoardreviewsitannually.Additionally,allBoarddecisionpapersarerequiredtoassessanyrisksrelatingtotheirrecommendations.

TheAuthorityadditionallyundertakesdetailedoperationalriskmanagementwhichfocusesonsafetyofnavigationalandhealthandsafety.TheAuthorityusesaSafetyManagementSystemtoidentifytherisks,mitigatethemwherepossible,withmonitoringandfrequentreassessment.

Viability statement

TheBoard,afterreviewandconsideration,canconfirmthattheorganisationhasadequateresourcesforaperiodofatleast12monthsfromthedateofapprovalofthefinancialstatementsandhasthereforeassessedthebusinessasagoingconcern.

Internal control

TheBoard’sresponsibilitytomonitortheadequacyofinternalcontrolwasmetbyreviewingtheriskregisterandconsideringtheadequacyofinternalcontrolsovertheprincipalrisksandbyreviewingtheworkoftheauditorsthroughtheirreportsandbydiscussionwiththem.TheBoardisnotawareofanysignificantdeficienciesininternalcontrolduringtheyear.TheAuditandRiskCommitteeregularlyreviewinternalcontrolsgoverningtheoperation of the Authority.

J Keohane

ChairmanApproved by the Board on 25 May 2017

01 Exposuretoincreasingpensiondeficit.

02 LossofamajorservicecallingattheHavenPorts.

03 Costimplicationsofchanneldeepeningrequiredtoaccommodateincreasingnumbersoflargervessels.

04 GlobaleconomicinfluencesimpactingadverselyontheAuthority’sbusiness.

Risk and risk management

Harwich Haven Authority’s key risks are:

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Notes 2016 2015 £ £ £ £Operating revenue 3 24,514,145 24,375,340

Expenditure 4 (17,600,059 ) (18,889,342)

Operating surplus 5 6,914,086 5,485,998

Finance income 7 37,124 27,259

Finance costs 8 (871,417 ) (1,046,826 )

Otherfinancecosts 9 (170,000 ) (217,000)

Surplus before taxation 5,909,793 4,249,431

Taxation 10 - -

Surplus for the financial year before other comprehensive income 5,909,793 4,249,431

Other comprehensive income

Actuarial(loss)/gainonpensionscheme 19 (8,967,000 ) 1,158,000

Movementondeferredtaxrelatingtopensionscheme 18 1,181,000 (305,000 )

(7,786,000 ) 853,000

Total comprehensive gain/(loss) relating to the year (1,876,207 ) 5,102,431

Amounts transferred from the revenue fund to the

following designated funds:

Planned2017capitalexpenditure 24 (2,013,300 ) -

AdditionalcontributionstothePensionScheme 24 (1,100,000 ) - inrespectofthedeficitfunding

Fundsforfuturecapitaldredging 24 (562,581 ) (648,462 )

Loan repayments 24 (2,193,724 ) -

(5,869,605 ) (648,462 )

(Loss)/gain relating to the year after transfers to

designated funds (7,745,812 ) 4,453,969

Continuing operations

Allamountsrelatetocontinuingoperations.

WehaveauditedthefinancialstatementsofHarwichHavenAuthorityfortheyearended31December2016whichcomprisetheStatementofTotalComprehensiveIncome,theStatementofFinancialPosition,theStatementofChangesinReserves,theStatementofCashFlowsandtherelatednotes.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice)includingFinancialReportingStandard102‘TheFinancialReportingStandardapplicableintheUKandRepublicofIreland’.

ThisreportismadesolelytotheBoardmembersofHarwichHavenAuthority,asabody,inaccordancewiththeHarboursAct1964.OurauditworkhasbeenundertakensothatwemightstatetotheBoardmembersthosematterswearerequiredtostatetotheminanAuditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheAuthorityandtheBoardmembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

Respective responsibilities of Board members and auditors

AsexplainedmorefullyinthestatementoftheBoard’sresponsibilities,theBoardisresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.

Scope of the audit of the financial statements

AdescriptionofthescopeofanauditoffinancialstatementsisprovidedontheFinancialReportingCouncil’swebsiteat www.frc.org.uk/auditscopeukprivate.

Opinion

Inouropinionthefinancialstatements:

- giveatrueandfairviewofthestateoftheAuthority’saffairsasat31December2016andofitssurplusfortheyearthenended;

- havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice;

- andhavebeenpreparedinaccordancewiththerequirementsoftheHarboursAct1964andtheCompaniesAct2006.

Matters on which we are required to report by exception

Wehavenothingtoreportinrespectofthefollowingmatterswherewearerequiredtoreporttoyouif,inouropinion:

- theinformationgivenintheReportoftheBoardisinconsistentinanymaterialrespectwiththefinancialstatements;or

- theAuthorityhasnotkeptadequateaccountingrecords;or

- thefinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns;or

- wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

Larking Gowen

CharteredAccountants,StatutoryAuditors,Ipswich25May2017

Independent auditor’s reportto the Board of Harwich Haven Authority

Statement of total comprehensive incomeYear Ended 31 December 2016

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ThefinancialstatementswereapprovedandauthorisedforissuebytheBoardandweresignedonitsbehalfby:

J Keohane Baroness R Scott

Chairman Deputy Chairman

25 May 2017 25 May 2017

Thenotesonpages39to54formpartofthesefinancialstatements.

Theallocationofthereservesat31December2016isdisclosedindetailinnotes24and25ofthefinancialstatements.

Notes 2016 2015 £ £ Fixed assets

Property,plantandequipment 11 44,728,721 45,751,108

Current assets

Inventories 12 175,115 160,436

Debtors 13 5,246,349 3,582,824

Short term investments 2,029,253 2,008,110

Cashatbankandinhand 14 4,503,541 4,280,410

11,954,258 10,031,780

Creditors: amounts falling due within one year 15 (2,974,759 ) (3,573,049)

Net current assets 8,979,499 6,458,731

Total assets less current liabilities 53,708,220 52,209,839

Creditors: amounts falling due after more than one year 16 (4,882,251 ) (9,456,663)

Provisions for liabilities and charges

Pensionschemeliability 19 (13,627,000 ) (5,678,000)

35,198,969 37,075,176

Reserves 24 35,198,969 37,075,176

Revenue Account £At1January2015 31,972,745

Surplusfortheyear 4,249,431

Other comprehensive income 853,000

At 31 December 2015 37,075,176

Surplusfortheyear 5,909,793

Othercomprehensiveloss (7,786,000)

At 31 December 2016 35,198,969

Statement of changes in reservesAs at 31 December 2016

Statement of financial positionAs at 31 December 2016

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2016 2015 £ £ Cash flows from operating activities

Operatingsurplus 6,914,086 5,485,998

Adjustmentsfor:

Depreciationofproperty,plantandequipment 2,087,988 2,032,493

(Profit)/lossondisposalofproperty,plantandequipment (10,277 ) 15,511

Increase in inventories (14,679 ) (697)

(Increase)/decreaseindebtorsexcludingdeferredtaxation (482,525 ) 414,853

Increase/(decrease)increditors 240,728 (117,866)

Differencebetweencurrentservicecostandcashcontributions

lessrunningcostsofpension (1,188,000 ) (588,000 )

Net cash generated from operating activities 7,547,321 7,242,292

Cash flows from investing activities

Interestreceived 37,124 27,259

Purchasesofproperty,plantandequipment (1,080,285 ) (519,711)

Proceedsfromsaleofproperty,plantandequipment 24,961 12,500

Net cash outflows from investing activities (1,018,200 ) (479,952)

Cash flows from financing activities

Repaymentofborrowings (5,413,430 ) (2,865,595)

Finance costs (871,417 ) (1,046,826 )

Net cash from financing activities (6,284,847 ) (3,912,421)

Net increase in cash and cash equivalents 244,274 2,849,919

Cashandcashequivalentsatbeginningofyear 6,288,520 3,438,601

Cash and cash equivalents at end of year 6,532,794 6,288,520

1 Basis of preparation

ThesefinancialstatementshavebeenpreparedinaccordancewithapplicableUnitedKingdomaccountingstandards,specificallyFinancialReportingStandard102–‘TheFinancialReportingStandardapplicableintheUnitedKingdomandRepublicofIreland’(‘FRS102’),andwiththeCompaniesAct2006.Thefinancialstatementshavebeenpreparedonthehistoricalcostbasis.

ThefinancialstatementsarepresentedinSterling(£).

2 Principal accounting policies

Operating revenue

OperatingrevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheAuthorityandtherevenuecanbereliablymeasured.Operatingrevenueismeasuredasthefairvalueoftheconsiderationreceivedorreceivable,excludingdiscounts,rebates,valueaddedtaxandothersalestaxes.Thefollowingcriteriamustalsobemetbeforerevenueisrecognised:

Operatingrevenuefromacontracttoprovideservicesisrecognisedintheperiodinwhichtheservicesareprovidedwhenallofthefollowingconditionsaresatisfied:

- theamountofrevenuecanbemeasuredreliably;and

- itisprobablethattheAuthoritywillreceivetheconsiderationdueunderthecontract.

Statement of cash flowsAs at 31 December 2016

Notes to the Financial StatementsYear ended 31 December 2016

Property, plant and equipment

Property,plantandequipmentismeasuredatcostlessaccumulateddepreciationandanyaccumulatedimpairmentlosses.

Depreciationiscalculatedtowritedownthecostlessestimatedresidualvalueofallproperty,plantandequipment,otherthanfreeholdland,overtheirexpectedusefullives,usingthestraight-linemethod.Theratesapplicableare:

Theoriginalcostofdredgingshippingchannelsiscapitalised.Costsincurredinmaintainingthechannels-“maintenancedredging”-arechargedtorevenueintheyearinwhichtheyareincurred.

Inventories

Inventories,whichconsistsofsparepartsandconsumableitems,arevaluedatthelowerofcostandnetrealisablevalueaftermakingdueallowanceforobsoleteandslow-movingitems.Costisbasedonthecostofpurchaseonafirstin,firstoutbasis.

Leases

Leasesinwhichasignificantpartoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleasesarechargedtotheincomestatementonastraightlinebasisovertheperiodofthelease.

Freeholdbuildings 25 years

Leaseholdproperty overtheremainingperiodofthelease

Capitaldredging 50 years

Jetties 25and10years

Launches,navigationand other equipment

3 to 20 years

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Deferred taxation

Fullprovisionismadefordeferredtaxassetsandliabilitiesarisingfromtimingdifferencesbetweentherecognitionofgainsandlossesinthefinancialstatementsandrecognitioninthetaxcomputation.NoprovisionismadefordeferredtaxationoncapitaldredgingfixedassetsunderFRS102asnobalancingchargewouldariseondisposalunderUKtaxlaw.

Anetdeferredtaxassetisrecognisedonlyifitcanberegardedasmorelikelythannotthattherewillbesuitabletaxableprofitsfromwhichthefuturereversaloftheunderlyingtimingdifferencescanbededucted.

Deferredtaxassetsandliabilities,whichareundiscounted,arecalculatedatthetaxratesexpectedtobeeffectiveatthetimethetimingdifferencesareexpectedtoreverse.

Research and development

Researchexpenditureiswrittenofftotheincomestatementintheyearinwhichitisincurred.

Capital grants received

Capitalgrantsreceivedarereleasedtotheincomestatementwhentheperformancerelatedcriteriahavebeensatisfied.

Revenue grants received

Revenuegrantsreceivedarereleasedtotheincomestatementintheperiodthatthecorrespondingexpenditureisincurredandrecognised.

Surcharges

TheAuthoritymakesasurchargeoncertainusersoftheHaventocoverthecostsofcapitaldredgingexercises.Themoneyraisedisheldinadedicatedholdingaccountandappliedtoservicecostsassociatedwithpastexercisesincludingloanrepayments,loanguaranteecostsandenvironmentalprotectioncosts.Anysurplusissetasideforfuture

Financialassetsthataremeasuredatcostandamortisedcostareassessedattheendofeachreportingperiodforobjectiveevidenceofimpairment.Ifobjectiveevidenceofimpairmentisfound,animpairmentlossisrecognisedintheincome statement.

Forfinancialassetsmeasuredatamortisedcost,theimpairmentlossismeasuredasthedifferencebetweenasasset’scarryingamountandthepresentvalueofestimatedcashflowsdiscountedattheasset’soriginaleffectiveinterestrate.Ifafinancialassethasavariableinterestrate,thediscountrateformeasuringanyimpairmentlossisthecurrenteffectiveinterestratedeterminedunderthecontract.

Creditors

Shorttermcreditorsaremeasuredatthetransactionprice.Otherfinancialliabilitiesaremeasuredinitiallyatfairvalue,netoftransactioncosts,andaremeasuredsubsequentlyatamortisedcostusingtheeffectiveinterestmethod.

Foreign currency translation

Functional currency and presentation currency

Thefinancialstatementsarepresentedinthecurrency of the primary economic environment in

whichtheentityoperates(itsfunctionalcurrency).Forthepurposeofthefinancialstatements,theresultsandfinancialpositionarepresentedinSterling(£).

Transactions and balances

Transactionsincurrenciesotherthanthefunctionalcurrencyarerecognisedatthespotrateonthedatesofthetransactionoratanaverageratewherethisrateapproximatestheactualrateatthedateofthetransaction.Attheendofeachreportingperiod,monetaryitemsdenominatedinforeigncurrenciesareretranslatedattheratesprevailingat

capitaldredgingoftheharbourapproacheswhichtheAuthoritycouldmakeavailableasacontributionsubjecttoasatisfactorybusinesscasebeingsubmittedandapproved.

Interest income

Interestincomeisrecognisedasinterestaccruesusingtheeffectiveinterestmethod.

Debtors

Debtorsaremeasuredattransitionprice,andaremeasuredsubsequentlyatamortisedcostusingtheeffectiveinterestmethod,lessanyimpairment.

Short term investments

Shortterminvestmentsconsistofdepositswithfinancialinstitutionswhichareconsideredreadilyconvertibleintocash.

Cash and cash equivalents

Cashisrepresentedbycashinhandanddepositswithfinancialinstitutionsrepayablewithoutpenaltyonnoticeofnotmorethan24hours.Cashequivalentsarehighlyliquidinvestmentsthatmatureinnomorethanthreemonthsfromthedateofacquisitionandthatarereadilyconvertibletoknownamountsofcashwithinsignificantriskofchangeinvalue.

Inthestatementofcashflows,cashandcashequivalentsareshownnetofbankoverdraftsthatarerepayableondemandandfromanintegralpartoftheAuthority’scashmanagement.

Financial instruments

TheAuthorityonlyentersintobasicfinancialtransactionsthatresultintherecognitionoffinancialassetsandliabilitiesliketradeandotherdebtors andcreditors.

Debtinstrumentsthatarepayableorreceivablewithinoneyear,typicallytradecreditorsortradedebtors,aremeasured,initiallyandsubsequently,attheundiscountedamountofthecashorotherconsideration,expectedtobepaidorreceived.Howeverifthearrangementsofashort-terminstrumentconstituteafinancingtransaction,likethepaymentofatradedebtdeferredbeyondnormalbusinesstermsorfinancedatarateofinterestthatisnotmarketrateorincaseofanoutrightshort-termloannotatmarketrate,thefinancialassetorliabilityismeasured,initially,atthepresentvalueofthefuturecashflowdiscountedatamarketrateofinterestforasimilardebtinstrumentandsubsequentlyatamortisedcost.

thatdate.Non-monetaryitemsthataremeasuredintermsofhistoricalcostsinaforeigncurrencyarenotretranslated.

Exchangedifferencesarerecognisedintheincomestatementintheperiodinwhich they arise.

Pension costs

Defined benefit pension scheme - Harwich Haven Authority Pension Fund

TheAuthorityoperatesadefinedbenefitscheme.Theamountschargedtooperatingsurplusarethecurrentservicecosts,andgainsandlossesonsettlementsandcurtailments.Theyareincludedaspartofstaffcosts.Pastservicecostsarerecognisedimmediatelyintheincomestatementifthebenefitshavevested.Ifthebenefitshavenotvested,thecostsarerecognisedovertheperioduntilvestingoccurs.Theinterestcostandexpectedreturnonassetsareshownasanetamountofotherfinancecostsorincomeintheincomestatement.Actuarialgainsandlosses,togetherwithanyassociatedmovementindeferredtaxationarerecognisedimmediatelyinthestatementof comprehensive income.

TheschemeisfundedwiththeassetsoftheschemewhichareheldseparatelyfromtheassetsoftheAuthority,inaseparatetrusteeadministeredfund.Pensionschemeassetsaremeasuredatfairvalueandliabilitiesaremeasuredonanactuarialbasisusingprojectedunitmethodandadiscountrateequivalenttothecurrentrateofreturnonahighqualitycorporatebondofequivalentcurrencyandtermtoschemeliabilities.Fullactuarialvaluationsareobtainedatleasttrienniallyandareupdatedateachstatementoffinancialpositiondate.Theresultingdefinedbenefitassetorliability,netoftherelateddeferredtax,ispresentedseparatelyafterothernetassetsonthefaceofthestatementoffinancialposition.

Money purchase pension plan

Thecompanyoperatesamoneypurchasepensionplanforitsemployees.Amoneypurchaseplanisapensionplanunderwhichthecompanypaysfixedcontributionsintoaseparateentity.Oncethecontributionshavebeenpaidthecompanyhasnofurtherpaymentsobligations.

Thecontributionsarerecognisedasanexpenseintheincomestatementwhentheyfalldue.Amountsnotpaidareshowninaccrualsasaliabilityinthestatementoffinancialposition.Theassetsoftheplanareheldseparatelyfromthecompanyinindependentlyadministeredfunds.

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Multi-employer defined benefit pension scheme

TheAuthorityhadadebtcertifiedundersection75ofthePensionsAct1995on20February2014.Thisliabilityhaspreviouslybeenrecognisedinthefinancialstatements,andsettledinfull.HoweverunderRule15(2)additionalsumsmaybeclaimedfromtimetotime.Theseadditionalsumsareundefinableandthereforenotprovidedforwithinthesefinancialstatements.

Fund accounting

DesignatedfundsareunrestrictedfundsearmarkedbytheBoardforparticularpurposes.

Judgements in applying accounting policies and key sources of estimation uncertainty

Thepreparationofthefinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheamountsreportedforassetsandliabilitiesasatthestatementoffinancialpositiondateandtheamountsreportedfor

revenuesandexpensesduringtheyear.However,thenatureofestimationmeansthatactualoutcomescoulddifferfromthoseestimates.

ThefollowingaretheAuthority’skeysourcesofestimationuncertainty:

Useful economic lives of tangible assets

Theannualdepreciationchargefortangibleassetsissensitivetochangesintheestimatedusefuleconomiclivesandresidualvaluesoftheassets.Theusefuleconomiclivesandresidualvaluesarere-assessedannually.Theyareamendedwhennecessarytoreflectcurrentestimates,basedontechnologicaladvancement,futureinvestments,economicutilisationandthephysicalconditionoftheassets.

Defined benefit pension scheme

TheAuthorityhasobligationstopaypensionbenefitstocertainemployees.Thecostofthesebenefitsandthepresentvalueoftheobligationdependonanumberoffactors,including;lifeexpectancy,salaryincreases,assetvaluationsandthediscountrateoncorporatebonds.Managementinstructaqualifiedactuarytoestimatethesefactorsanddeterminethenetpensionobligationatthestatementoffinancialpositiondate.Theassumptionsreflecthistoricalexperienceandcurrenttrends.

3 Operating revenue

2016 2015 £ £

Dues on ships 17,164,698 17,001,021

Pilotageservices 5,818,452 5,805,274

Pilotageexemptioncertificates 15,180 19,110

Boardingandlandingcharges 977,438 965,849

Otheroperatingactivities 538,377 584,086

24,514,145 24,375,340

AlloperatingrevenuearosewithintheUnitedKingdom.

4 Expenditure

2016 2015 £ £

Harbouroperatingexpenditure 11,203,434 12,032,982

Pilotageservicecosts 6,396,625 6,856,360

17,600,059 18,889,342

5 Operating surplusTheoperatingsurplusonordinaryactivities isstatedafterchargingthefollowing:-

2016 2015 £ £

Depreciation 2,087,988 2,032,493

Auditors’remuneration -inrespectofauditservices 19,600 19,000

-inrespectoftaxationservices 3,000 3,000

-inrespectofotherservicesprovided 8,150 5,700

(Profit)/lossonsaleoffixedassets (10,277 ) 15,511

Operatingleaserentals 340,188 322,880

Researchanddevelopmentexpenditure 185,477 127,056

Contributionstoadefinedbenefitpensionschemeweremadeonbehalfofone(2015:one)Boardmember.

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6 Board members and employees

2016 2015 £ £

Wagesandsalaries 5,642,030 5,203,219

Socialsecuritycosts 661,186 617,760

Other pension costs 1,789,052 1,747,400

8,092,268 7,568,379

Averagenumberofemployeesexcludingnon-executivemembersoftheBoard 110 105

Pensioncontributionspaidaredetailedinnote19.

Board members’ remuneration

2016 2015 £ £

Emoluments 398,223 304,474

9 Other finance costs

2016 2015 £ £

Definedbenefitpensionschemeinterestexpense 170,000 217,000

170,000 217,000

10 Taxation

2016 2015 £ £

Current tax charge - -

Deferred tax - -

Charged/(credited) to income statement - -

Factors affecting the tax charge for the year

Surplus/(deficit)onordinaryactivitiesbeforetaxation 5,909,793 4,249,431

Surplus/(deficit)onordinaryactivitiesbeforetaxationmultipliedbythe 1,181,959 849,886

standardrateofUKCorporationTaxof20%(2015:20.0%)

Effectsof:

Deferredtaxnotrecognised

Actuariallossesonpensionscheme (203,600 ) (74,200)

Pensioncostreliefinexcessofpensioncostcharge (756,790 ) (756,790)

Originationandreversaloftimingdifferences (89,218 ) (162,641 )

(Losses)/profitbrought/carriedforward (132,351 ) 143,745

(1,181,959 ) (849,886)

Current tax - -

7 Finance income

2016 2015 £ £

Interest from short term investments 37,124 27,259

37,124 27,259

8 Finance costs

2016 2015 £ £

Loan interest 731,377 875,289

Guarantee fee 140,040 171,537

871,417 1,046,826

Themostsignificantdifferencebetweenthe2016and2015emolumentsistheinclusionofafullyear’spayfortheHarbourMasterfollowinghisappointmenton10September2015.

TheaggregateemolumentsofthehighestpaidBoardmembertotalled£153,695(2015:£147,947).At31December2016thehighestpaidBoardmemberhadaccruedbenefitsundertheAuthority’sdefinedbenefitschemeof£47,720(2015:£49,596),beingretirementbenefits.

Duringtheyearretirementbenefitswereaccruingto1Boardmember(2015-1)inrespectofdefinedbenefitpensionsschemes

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11 Property, plant and equipment

Freehold Long Capital Jetties Launches, Total land and leasehold dredging navigation buildings property & other equipment

Cost £ £ £ £ £ £At1January2016 1,940,112 2,083,839 68,556,725 2,040,626 11,659,766 86,281,068

Additions - - - 582,162 498,123 1,080,285

Disposals (53,851) - - (240,029) (1,106,322) (1,400,202)

At 31 December 2016 1,886,261 2,083,839 68,556,725 2,382,759 11,051,567 85,961,151

Depreciation

At1January2016 1,454,114 629,866 28,997,193 1,832,973 7,615,814 40,529,960

Charge 51,625 37,375 1,135,466 51,705 811,817 2,087,988

Eliminatedondisposal (53,851) - - (220,763) (1,110,904) (1,385,518)

At 31 December 2016 1,451,888 667,241 30,132,659 1,663,915 7,316,727 41,232,430

Net book values

At 31 December 2016 434,373 1,416,598 38,424,066 718,844 3,734,840 44,728,721

At31December2015 485,998 1,453,973 39,559,532 207,653 4,043,952 45,751,108

Includedwithinthedisposalsare£1,287,778offullydepreciatedassetsthatondetailedexaminationoftheFixedAssetRegisterwerefoundtohaveeitherbeensuperseded,redundantornolongerexist.

12 Inventories

2016 2015

£ £

Consumablestores 175,115 160,436

Inventoriesrecognisedasanexpenseduringtheyearwas£512,671(2015:£533,987).

13 Debtors

2016 2015 £ £

Due after more than one year

Deferredtaxasset(note18) 2,317,000 1,136,000

Due within one year

Tradedebtors 2,202,898 1,524,564

VAT 262,894 234,894

Prepaymentsandaccruedincome 463,557 687,366

5,246,349 3,582,824

14 Cash at bank and in hand

Includedincashatbankandinhandisthesumof£1,499,803(2015:£1,499,975)whichconstitutesthesecuredsurchargerevenueaccount,restrictedastoitsuseunderthetermsofaloan.

15 Creditors: amounts falling due within one year

2016 2015 £ £

Tradecreditors 199,519 131,138Accruals,deferredincomeandothercreditors 581,516 409,169Loan (note 16) 2,193,724 3,032,742

2,974,759 3,573,049

16 Creditors: amounts falling due after more than one yearSecuredloans 7,075,975 12,489,405

Less:amountsduewithinoneyear(note15) (2,193,724 ) (3,032,742)

4,882,251 9,456,663

2016 2015Amountsrepayablebyinstalments £ £

Inoneyearorless 2,193,724 3,032,742

In one to two years 2,354,720 3,204,322

Intwotofiveyears 2,527,531 6,252,341

7,075,975 12,489,405

Infiveyearsormore - -

7,075,975 12,489,405

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17 Financial Instruments

2016 2015 £ £

Financialassetsatamortisedcost 8,735,692 7,813,084

Financialliabilitiesatamortisedcost (7,857,010 ) (13,029,712)

878,682 (5,216,628 )

Financialassetsmeasuredatamortisedcostcomprisecashatbankandinhand,shortterminvestmentsanddebtorsduewithinoneyear,excludingprepaymentsandVATreceivable.

Financialliabilitiesmeasuredatamortisedcostcomprisecreditorsduewithinoneyearandafteroneyear.

18 Deferred Taxation

Themovementindeferredtaxationduringtheyearisasfollows:-

£

At 1 January 2016 (1,136,000 )

Movementinprovision -

Deferredtaxassetinrelationtopensionliabilityrecognisedinyear: -

Incomestatement -

Statementoftotalcomprehensiveincome (1,181,000)

At 31 December 2016 (2,317,000 )

Deferredtaxationprovidedinthefinancialstatementsandthepotentialamountsincludingtheamountsforwhichprovisionhasbeenmadeareasfollows:-

Provision Potential 2016 2015 2016 2015 £ £ £ £

Acceleratedcapitalallowances 252,302 320,695 252,302 320,695

Availabletaxlosses (252,302 ) (320,695) (570,539 ) (798,935)

PilotsNationalPensionFundaccrual - - (643,271 ) (1,513,580 )

Netasset - - (961,508 ) (1,991,820)

Deferredtaxassetonpensionliabilitydeductedfrompensionliability (2,317,000 ) (1,136,000 ) (2,317,000 ) (1,136,000 )

Totalprovisionfordeferredtax (2,317,000 ) (1,136,000 ) (3,278,508 ) (3,127,820)

NoprovisionismadefordeferredtaxationoncapitaldredgingfixedassetsunderFRS102asnobalancingchargewouldariseondisposalunderUKtaxlaw.

19 Pension schemeDefined benefit scheme

Forsomeemployees,theAuthorityoperatesafundedpensionplanprovidingbenefitsforitsemployeesbasedonfinalpensionablepay.TheassetsoftheFundareheldinaseparatetrusteeadministeredfund.

ThefundingplanisfortheFundtoholdassetsequaltothevalueofthebenefitsearnedbyemployees,basedonasetofassumptionsusedforfundingtheFund.Thefundingassumptionsdifferfromtheassumptionsusedtocalculatethefiguresfortheseaccounts,andthereforeproducedifferentresults.Ifthereisashortfallagainstthisfundingplan,thentheAuthorityandTrusteesagreeondeficitcontributionstomeetthisdeficitoveraperiod.TheAuthorityhasagreedtopaycontributionsinrespectofongoingaccrualofmembers’benefits,inadditiontocontributionsinrespectofthedeficitinfunding.Aspartoftheactuarialvaluationwithaneffectivedateof31December2014thefollowingcontributionsfromtheAuthoritywereagreed:

-16.725%paofpensionablesalariesinrespectofongoingbenefitaccrual;and-£1.11mpainrespectofthedeficitfunding.

Theresultsoftheformalactuarialvaluationasat31December2014wereupdatedtotheaccountingdatebyanindependentqualifiedactuaryinaccordancewithFRS102,allowingforbenefitpaymentsmade,andchangesinmarketconditions.Theresults,basedonassumptionsusedforFRS102,areasfollows:

Statement of financial position 2016 2015 £000 £000

Presentvalueofdefinedbenefitobligation (69,971 ) (53,864 )FairvalueofFundassets 56,344 48,186

Deficitreflectedinprovisionsforliabilitiesandcharges (13,627 ) (5,678)Relateddeferredtaxassetreflectedindebtors 2,317 1,136

Netliabilityrecognisedinthestatementoffinancialposition (11,310 ) (4,542 )

Theloantotalshownaboveincludes£7,075,975(2015:£9,119,710)bearinginterestat7.209%perannumrepayableoveratwentyyearperiodcommencing3June2000.Thisloanissecuredbyafirstfixedchargeonpresentandfuturesurchargerevenues.Thesurchargerevenuescanonlybeusedforcertainpurposes,theprincipalonesbeingtherepaymentofthecapitalandinterestontheloan.At31December2016,thesurchargerevenuessetasideforthispurpose,incash,amountedto£1,499,803(2015:£1,499,975).TheobligationsoftheAuthorityunderthetermsoftheloanareguaranteedbyThePortofFelixstoweLimitedandassociatedcompanies.

Theloan,bearinginterestatLIBORplus2.3%perannum(2015:£3,369,695)waspaidinfullon29December2016.

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Themajorcategoriesofplanassetsatthebalancesheetdateareasfollows:

2016 2015 £000 £000

Bonds 9.3% 9.2%Gilts 20.4% 28.3%Totalreturnfund 69.8% 62.5%Cash 0.5% 0.0%

100.0% 100.0%

TheFunddoesnotinvestdirectlyinpropertyoccupiedbytheAuthorityorinfinancialsecuritiesissuedbytheAuthority.

ThefollowingtablesetsoutthesignificantassumptionsusedfortheFund:

Actuarial Assumptions 2016 2015 2014

RetailPricesIndexinflation 3.2% p.a 3.0%p.a 3.1%p.aConsumerPricesIndexinflation 2.2% p.a 2.0%p.a 2.1%p.aDiscount rate 2.6% p.a 3.8%p.a 3.6%p.aPensionincreasesinpayment(5%LPI) 3.1% p.a 2.9%p.a 3.0%p.aPensionincreasesinpayment(2.5%LPI) 2.1% p.a 2.0%p.a 2.1%p.aSalaryincreases 3.7% p.a 3.5%p.a 3.6%p.aLifeexpectancyofmaleaged63atbalancesheetdate 24.8 years 24.7years 24.6yearsLifeexpectancyofmaleage63in20years’time 27.1 years 27.0years 26.9years

Movement in net defined benefit liability 2016 2015

£000 £000

Openingnetdefinedbenefitliability 5,678 7,207Expenserecognisedinthesurplusbeforecomprehensiveincome 918 1,312Employercontributions (1,936 ) (1,683 )Amountrecognisedinothercomprehensiveincome 8,967 (1,158 )

Closingnetdefinedbenefitliability 13,627 5,678

Expense recognised in statement of total comprehensive income 2016 2015

£000 £000

Employer’spartofcurrentservicecost 721 1,069Pastservicecostandsettlements 8 -Runningcosts 19 26Interest expense 170 217

Totalexpenserecognisedinstatementoftotalcomprehensiveincome 918 1,312

Movement in present value of defined benefit obligation 2016 2015 £000 £000

Openingdefinedbenefitobligation 53,864 54,464 Employer’spartofcurrentservicecost 721 1,069Pastservicecostandsettlements 8 -Interestonobligation 2,026 1,941ContributionsfromFundmembers 172 115Actuariallosses/(gains) 15,016 (2,606 )Benefitspaid (1,836 ) (1,119)

Closingdefinedbenefitobligation 69,971 53,864

Movement in fair value of plan assets 2016 2015 £000 £000

OpeningfairvalueoftheFundassets 48,186 47,257InterestonFundassets 1,856 1,724ActualreturnlessinterestonFundassets 6,049 (1,448 )Contributions by the Authority 1,936 1,683ContributionsbyFundmembers 172 115Runningcosts (19 ) (26 )Benefitspaid (1,836 ) (1,119)

ClosingfairvalueofFundassets 56,344 48,186

Thetotalreturnontheassetsovertheyearwas£7,905,000.

20 Capital commitmentsAttheyearendtheBoardhadcontractedtofurthercapitalexpenditurewhichisnotprovidedinthesefinancialstatementsof£200,220(2015:£160,096).

21 Operating lease commitments

At31December2016theAuthorityhadfutureminimumleasepaymentsundernon-cancellableoperatingleasesasfollows:

2016 2015 £ £Expirydate:Within1year 257,100 311,917Between 2 to 5 years 1,028,400 1,028,400After more than 5 years 11,665,810 11,922,910

12,951,310 13,263,227

Includedwithinthecommitmentis£11,947,500(2015:£12,186,450)relatingtotheleasefortheManagedRetreatinTrimleywhichexpiresin2067.

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24 Reserves Brought Gains/ Total Carried forward Income Expenditure Transfers (losses) movement forward £ £ £ £ £ £ £

DesignatedCapitalexpenditure - - - 2,013,300 - 2,013,300 2,013,300Pensioncontributions - - - 1,100,000 - 1,100,000 1,100,000Capitaldredging 648,462 - - 562,581 - 562,581 1,211,043Loanrepayments - - - 2,193,724 - 2,193,724 2,193,724

648,462 - - 5,869,605 - 5,869,605 6,518,067

RevenueGeneral 8,843,011 24,551,269 (18,637,089) (11,283,035) 1,181,000 (4,187,855) 4,655,156Pensionscheme (5,678,000) - 1,018,000 - (8,967,000) (7,949,000) (13,627,000)

3,165,011 24,551,269 (17,619,089 ) (11,283,035 ) (7,786,000 ) (12,136,855 ) (8,971,844 )

Fixed assets and loansFixedassets 45,751,108 - (1,022,387) - - (1,022,387) 44,728,721Loans (12,489,405) - - 5,413,430 - 5,413,430 (7,075,975)

33,261,703 - (1,022,387 ) 5,413,430 - 4,391,043 37,652,746

Revenue, fixedassets and loans 36,426,714 24,551,269 (18,641,476 ) (5,869,605 ) (7,786,000 ) (7,745,812 ) 28,680,902

Total 37,075,176 24,551,269 (18,641,476 ) - (7,786,000 ) (1,876,207 ) 35,198,969

TheAuthorityiskeentoprovideitsStakeholderswithaclearerunderstandingoftheAuthority’sFinancesandtothisendhasmadeseveralchangestothepresentationoftheAccounts.InparticularastohowtheAuthorityutilisessurplusesgeneratedfromitsoperationsandastohowitscumulativereservesareallocatedtofutureuse.

Asaconsequencethereservesat31December2015of£37,075,176havebeenanalysedbytheBoardtoprovideareflectionoftheirallocationbetweenthefundsasshowninthetableabove.ThecolumnheadedExpenditureisthenettotalofactualexpenditure,depreciationandidentifiedfutureliabilities.

Belowaredescriptionstothevariousheadingsabove.

DesignatedCapital expenditure

IncludesamountsdesignatedbytheAuthoritytowardscapitalexpenditureinfuturefinancialyears.

22 Contingent liabilitiesThePilotsNationalPensionFundisaUKdefinedbenefitpensionschemeformarinepilots.Itincludesself-employedaswellasemployedmembers,andisfundedbymultipleemployers,includingharbourauthoritiesthatonlyauthorisedself-employedpilotsandhadneverpreviouslybeenrequiredtocontributetothescheme.

TheAuthorityhaditsdebtcertifiedundersection75ofthePensionsAct1995on20February2014andthishasbeenrecognisedinthefinancialstatementsfortheyearended31December2013.HoweverunderRule15(2)additionalsumsmaybeclaimedfromtimetotime.Theseadditionalsumsareundefinableandthereforenotprovidedforwithinthesefinancialstatements.

23 Related party transactions

Key management personnelTheBoardandManagementteamaslistedonthemembers,managementandadvisorspageareconsideredtohaveauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheAuthorityandarethereforeconsideredtobekeymanagementpersonnel.Totalremunerationinrespectoftheseindividualsis£712,524(2015:£604,853).

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Pension contributions

IncludesamountsdesignatedbytheAuthoritytowardsadditionalcontributionstothePensionSchemeinrespectofthedeficitfundinginthenextfinancialyear.

Funds for future capital dredging

IncludessurplusfromConservancySurchargereceiptsthattheAuthoritycouldmakeavailableasacontributiontowardsfuturedeepeningoftheharbourapproaches.SuchdeepeningwouldmaketheHavenmoreaccessibleforthenewgenerationofcontainerships.Nobusinesscasehasbeensubmittedorapproved.

Loan repayments

IncludesamountsdesignatedbytheAuthoritytowardsfutureloanrepaymentsfallingdueinthenextfinancialyear.

RevenueGeneral

Includesallothercurrentandpriorperiodsurplusesanddeficits.

Pension scheme

IncludestheobligationtothemembersoftheHarwichHavenAuthorityPensionFund(HHAPF)priortoanyreductionsforamountsheldwithindesignatedfunds.

Fixed assets and loansFixed assets

IncludescurrentandpriorperiodincomeandexpenditurerelatingtofixedassetsheldbytheAuthority.

Loans

Includescurrentandpriorperiodadvances,repaymentsandinterestrelatingtoloansheldbytheAuthoritypriortoanyreductionsforamountsheldwithindesignatedfunds.

25 Analysis of net assets between funds Fixed Total funds Total funds Designated Revenue assets 2016 2015 £ £ £ £ £

Fixedassets - - 44,728,721 44,728,721 45,751,108CurrentAssets 6,518,067 5,436,191 - 11,954,258 8,895,780Liabilities (781,035) (7,075,975) (7,857,010) (13,029,712)Pensionscheme - (13,627,000) - (13,627,000) (4,542,000)

Total 6,518,067 (8,971,844 ) 37,652,746 35,198,969 37,075,176

Harwich Haven Authority

Harbour House, The Quay

Harwich, Essex, CO12 3HH

The Authority

Winckworth Sherwood LLP

Minerva House, 5 Montague Cl.,

London, SE1 9BB

Solicitor

Barclays Bank

9 High Street, Colchester

Essex, CO1 1DD

Lloyds TSB

1 West Avenue, Clacton on Sea

Essex, CO15 1QP

Bankers

Larking Gowen

1 Claydon Business Park

Great Blakenham, Ipswich

Suffolk, IP6 0NL

Auditors

55