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THE CAIRNGORMS NATIONAL PARK AUTHORITY

Annual Report and Accounts for the year ended
31 March 2010

Authorised for issue On 25 June 2010

AUDITED ACCOUNTS for the year ended 31 March 2010

MANAGEMENT COMMENTARY 2
REMUNERATION REPORT 5
NATIONAL PARK BOARD MEMBERS 9
STATEMENT OF NATIONAL PARK AUTHORITYÕS REPONSIBILITIES 12
STATEMENT OF ACCOUNTABLE OFFICERÕS RESPONSIBILITIES 12
STATEMENT OF INTERNAL CONTROL 13
INDEPENDENT AUDITORÕS REPORT 16
NET EXPENDITURE ACCOUNT 19
STATEMENT OF FINANCIAL POSITION 20
STATEMENT OF CASH FLOWS 21
STATEMENT OF CHANGES IN TAX PAYERSÕ EQUITY 22
NOTES TO THE ACCOUNTS 23
DIRECTION BY THE SCOTTISH MINISTERS 34
APPENDIX 1 Ð Members attendance at meetings 35

MANAGEMENT COMMENTARY

Introduction

This Statement of Accounts, prepared in a form directed by Scottish Ministers in accordance with the National Parks
(Scotland) Act 2000, reports on the seventh year of operation of the Cairngorms National Park Authority (CNPA).
The Accounts Direction is shown on page 34. The Park Authority became fully operational on 1 September 2003.

Background

National Park Aims

Section 1 of the National Parks (Scotland) Act 2000 sets out four aims for the Park:

¥ to conserve and enhance the natural and cultural heritage of the area;
¥ to promote sustainable use of the natural resources of the area;
¥ to promote understanding and enjoyment (including enjoyment in the form of recreation) of the special qualities
of the area by the public; and
¥ to promote sustainable economic and social development of the areaÕs communities.

The Cairngorms National Park Authority

The statutory purpose of the Cairngorms National Park Authority is set out in section 9 of the National Parks
(Scotland) Act 2000 (NP(S)A). This purpose is to ensure that the aims in section 1 of the Act are achieved in a way
that is mutually supportive, rather than looking at each of the aims separately and in isolation. Under the legislative
provisions of the NP(S)A, the Designation Order for the Park Authority was approved on 7 January 2003. The Order
defined the boundaries of the National Park, confirmed the constitution of the Park Authority, the functions to be
exercised by the Park Authority and identified specific dates on which the CNPA would come into existence and when
it would become responsible for full function delivery viz, the establishment date of 25 March 2003 and operational
date of 1 September 2003.

The National Park Authority has the status of a Non-Departmental Public Body working to the provisions of a
Management Statement and Financial Memorandum agreed with its sponsoring body within the Scottish Government:
the Rural Directorate. The general purpose of the CNPA is to ensure that the National Park Aims are collectively
achieved in a co-ordinated way, in relation to the Cairngorms National Park.

A full list of Park Authority Members together with a rŽsumŽ of their backgrounds is detailed on pages 9 to 12. The
Register of MembersÕ Interest is available for public inspection during office hours at the Park AuthorityÕs offices, 14
The Square, Grantown-on-Spey, PH26 3HG or on line at
http://www.cairngorms.co.uk/resource/docs/Register.of.Interests.of.Members.pdf

Results and future activities

The results for the year to 31 March 2010 are set out in pages 19 to 22 together with the notes on pages 23 to 33.
The accounts are prepared on a going concern basis.

The Park AuthorityÕs total expenditure for the year was £5.6 million and after receiving Grant in Aid of £4.8 million,
third party contributions to Operational Plan spend of £ 0.7 million and other income the accounts show recognised
net expenditure of £57,002 (see note 14).

Further details of our expenditure breakdown are shown in the notes to the accounts, in particular at note 3, which
details our expenditure by Segment and note 5, which details Operational Plan expenditure. A summary of our
operational activity for the year is set out in the preceding sections of this Annual Report.

The main sources of CNPA funding for the year were the resource budgets and cash grant-in-aid funding allocated
to it by its sponsoring department, the Scottish Government Rural Directorate (SGRD). These resources have been
utilised during the year as shown in the table below and the result has been noted by the sponsoring department.

Budget Out Turn Variance

Resource Budget 2009/10 £'000 £'000 £'000
Current Operating Expenditure 4,747 4,747 0
Depreciation 78 62 16
Cost of Capital 9 12 (3)
Operating Costs 4,834 4,821 13
Capital 58 58 0

A comprehensive presentation of the Park AuthorityÕs current and future activity plans is available in its Operational
Plan for 2010-11
(http://www.cairngorms.co.uk/resource/docs/boardpapers/19032010/CNPA.Paper.3403.Board.Board.Paper.5.O.pdf )
and Corporate Plan for 2008 to 2011
(http://www.cairngorms.co.uk/parkauthority/corporatepoliciesplans/plans).

Significant attention has been given to security of information and data within the public sector over the course of
2009/10. The Authority has had no instances of loss of data or personal information over the course of the year.

Changes in fixed assets

Movements in fixed assets are shown in note 9.

Key additions in the year related to £56k of Information Technology equipment.

Post balance sheet events

There are no post balance sheet date events to report for the year to 31 March 2010.

Charitable donations

There were no charitable donations made in the year.

Payment performance

The Park AuthorityÕs payment policy complies with the terms of the Better Payment Practice Code. During the year
to 31 March 2010, the time taken to pay creditors achieved an average of 11.3 days against a target of 10 days (During
the period from 1 December 2008 to 31 March 2009 the time taken to pay creditors achieved an average of 12.4 days
against a target of 10 days. During the period to 30 November 2008, the time taken to pay creditors achieved an
average of 14.7 days against a target of 30 days.).

Employment policies, consultation and equality

CNPA continues to work closely with staff representatives and Prospect Trade Union through the Staff
Consultative Forum in resolving a range of staffing issues, consulting on new initiatives and keeping staff well
informed. CNPA gained Investors in People status in April 2008.

The Race, Gender and Disability Equality Schemes have been embedded into the work of CNPA, and progress with
the associated action plans reviewed. Comprehensive equalities training and guidance for all staff is in place, and
CNPA is accredited with the ÒPositive About DisabilityÓ symbol.

The Authority continues to recognise the importance of training and development to ensure that all staff have the
skills required for delivery of their role in the context of the organisationÕs enabling and partnership ethos. An
independent staff survey conducted, through the ÒSunday Time Best Places to WorkÓ processes, confirmed the
effectiveness of the AuthorityÕs employment policies, with training benefits being seen as of particular value.

The Authority maintains oversight of its management of sickness absence through regular review of performance at
Board and Management Team level. Sickness absence is included as a key performance indicator in the AuthorityÕs
balanced scorecard performance measurement tool. In 2009/10, the average number of days lost through sickness
was 6.1 days per person (2008/09 6.2days).

Pensions

The Park AuthorityÕs pension liabilities are detailed in the Remuneration Report and Notes 1, 4, 5 and 15 to the
Accounts.

Sustainability reporting

The Purpose of the Park Authority is to promote partnership and give leadership to all the bodies and agencies
involved in the sustainable growth and development of the Park. To this end, the National Park Plan annual report
sets out a comprehensive description of the work undertaken by the Authority and its partners in the sustainable
development of the Cairngorms National Park.

The National Park Authority is actively engaged in a wide range of actions promoting sustainability Ð in community
development, land management and in our own business processes. These activities are set out in detail in the main
body of this annual report and accounts document. The AuthorityÕs Corporate Plan places significant emphasis on
these areas of activity and we also aim to make a contribution to the relevant National Outcomes in this area. The
AuthorityÕs performance monitoring system also focuses on sustainability, with measures of the sustainability of
priority species, the development of community action plans, promotion of sustainable business and reduction in the
AuthorityÕs own carbon emissions all featuring as key performance indicators for the organisation.

Environmental matters

A priority focus for the Authority is on conserving and enhancing biodiversity and landscapes to sustain our natural
and cultural heritage. The AuthorityÕs focus in this priority has been on improving opportunities for people to
engage in local biodiversity and cultural heritage and supporting active conservation as part of the Local Biodiversity
Action Partnership. The Authority continued to develop the longer term plans and guidance necessary to conserve
and enhance biodiversity and landscapes in the Park. These included completion of a landscape character
assessment; a study of the landscape special qualities of the Park; development of planning guidance to support the
forthcoming Local Plan; and a geology audit completed by the British Geological Survey.

The National Park Authority has also set the reduction in its carbon footprint from its business activities as a key
objective and illustration of its environmental performance and leadership. Our key performance indicator of
reducing carbon emissions from vehicle based business travel reduced by 5.6 tonnes (10.3%) in 2009/10.

Social and community issues

Conserving and enhancing the special qualities of the Cairngorms National Park is essential if the Park is to maintain
and build a diverse and vibrant economy. The AuthorityÕs work in this area spans support for sustainable business
development within the National Park, to work on promoting development of affordable housing, and to
partnerships with individual communities and more widely with community planning partnerships. Over the course
of 2009/10, the authority has provided support for the development of the Cairngorms Business Partnership;
explored and been instrumental in developing new affordable housing innovations, for example to help build new
homes in the Park that receive no subsidy; and the ÔOur Community A Way ForwardÕ scheme, which was previously
developed by the CNPA and Badenoch & Strathspey Community Planning Partnership, was selected by the Scottish
Government as a project that demonstrates the best way of engaging with communities. The community action
planning toolkit, developed as a result, was subsequently used by ÔBallater One Voice Our FutureÕ.

Auditors

The accounts of the Park Authority are audited by an auditor appointed by the Auditor General for Scotland in
accordance with paragraph 25 (2) of the National Parks (Scotland) Act 2000. His audit report is on pages 17 and 17
and details of the auditorÕs remuneration are given in note 6.

Disclosure of information to auditors

As Accountable Officer, as far as I am aware, there is no relevant audit information of which the Park AuthorityÕs
auditors are unaware. I have taken all reasonable steps that ought to have been taken to make myself aware of any
relevant audit information and to establish that the Park AuthorityÕs auditors are aware of the information.
Signed on behalf of the Cairngorms National Park Authority
Jane Hope, Chief Executive 25 June 2010

REMUNERATION REPORT

Introduction

The Park Authority has in place a Staffing and Recruitment Committee, which consists of five Board members. The
Committee meets as required, its membership and remit being agreed annually by the full CNPA Board. The

CommitteeÕs remit includes the following:

¥ to oversee and monitor the HR (human resources) systems put in place for the CNPA, including in
particular the pay and grading system, performance appraisal system and the related performance related
pay system;

¥ to advise the CNPA Board on annual pay awards;

¥ to provide an interface between staff representative group(s) and the Board, and play a role in arbitrating
on staffing issues as set out in the CNPAÕs procedures, and as otherwise required; and

¥ to oversee the recruitment of senior staff (Heads of Group and Chief Executive) including agreeing the job
descriptions, adverts and salary; to take responsibility for interviewing and selecting the successful
candidates, and seeking the endorsement of the whole CNPA Board (and of Scottish Ministers in the case
of the Chief Executive).

For the purposes of this report, persons in senior positions having authority or responsibility for directing or
controlling the major activities of the Park Authority are taken to comprise the Chief Executive and Board
members.

Service contracts

Salary levels for the CNPAÕs staff, including the Chief Executive, are reviewed by the Staffing and Recruitment
Committee and the overall pay remit is subject to agreement by the Park AuthorityÕs Sponsoring Body at the
Scottish Government.

In reaching its recommendations, the Committee has regard to the following considerations:

¥ the need to recruit, retain and motivate suitably able and qualified people to exercise their different
responsibilities;

¥ regional/local variations in labour markets and their effects on the recruitment and retention of staff;

¥ Government policies for improving the public services including the requirement on departments to meet
the output targets for the delivery of departmental services;

¥ the funds available to departments as set out in the GovernmentÕs departmental expenditure limits;

¥ the GovernmentÕs inflation target.

Chief Executive

The current Chief Executive, Mrs Jane Hope, served as the Interim Chief Executive from January 2003 until her
appointment as permanent Chief Executive on 1 June 2004. Mrs HopeÕs contract of employment, signed on 30 April
2004, contains a three month notice period.

Board members

Board membersÕ fees are approved annually each April by the Scottish Government.

Board members (continued)

This section of the Remuneration Report is subject to Audit.

NOTE: This section contains a table of information
which cannot be converted to text.  Please see the 
original PDF for reference. 

2009/10 2008/09
Most recent
appointment
End of term or
date stepped
down
Fees
£
Expenses
£
Fees
£
Expenses
£
Scottish Government
appointee
David Green 8 Sep 2009 7 Sep 2012 20,776 9,641 20,441 11,025
Eric Baird 24 Mar 2009 30 Sept 2010 10,390 879 10,221 1,648
Duncan Bryden 25 Mar 2007 30 Sep 2010 10,430 1,716 10,221 1,595
Nonie Coulthard 1 Apr 2006 30 Nov 2008 4,932 998
Lucy Grant 24 Mar 2009 30 Sep 2010 7,889 582 7,768 821
Robert Kinnaird 1 Dec 2006 31 Mar 2010 7,194 512 7,076 753
Anne MacLean 25 Mar 2007 30 Sep 2010 7,194 560 7,076 469
Alistair MacLennan 24 Mar 2009 30 Sep 2010 7,194 243 7,076 360
Susan Walker 25 Mar 2007 30 Sep 2010 7,194 919 7,076 909
Ross Watson 1 Apr 2006 31 Oct 2008 4,134 186
Local Authority nominee
Peter Argyle 16 Mar 2009 31 Aug 2011 7,194 166 591 -
Francis (Stuart) Black 1 Sept 2007 31 Aug 2011 7,194 - 7,076 -
Jaci Douglas 1 Sept 2007 31 Aug 2011 7,297 51 7,285 123
Dave Fallows 1 Sept 2007 31 Aug 2011 7,194 916 7,076 1,103
Drew Hendry 1 Sept 2007 31 Aug 2011 7,194 676 7,076 1,033
Marcus Humphrey 1 Sept 2007 31 Aug 2011 7,194 366 7,076 493
Bruce Luffman 1 Sept 2007 31 Jan 2009 5,895 1,438
Ian Mackintosh 1 Sept 2007 31 Aug 2011 7,194 1,109 7,076 1,041
Fiona Murdoch 1 Sept 2007 31 Aug 2011 7,194 807 7,076 760
Sandy Park 1 Sept 2007 30 Nov 2008 4,725 716
Gregor Rimell 01 Jan 2009 31 Aug 2011 7,194 625 1,772 187
Richard Stroud 1 Sept 2007 31 Aug 2011 7,194 491 7,076 1,012
Local elected
Geva Blackett 16 Mar 2007 15 Mar 2011 7,194 931 7,076 526
Eleanor Mackintosh 16 Mar 2007 15 Mar 2011 7,194 722 7,076 1,217
Mary McCafferty 16 Mar 2007 15 Mar 2011 7,194 604 7,076 543
William McKenna 16 Mar 2007 15 Mar 2011 7,194 - 7,076 -
Andrew Rafferty 16 Mar 2007 15 Mar 2011 7,194 - 7,076 128
186,274 22,517 191,195 29,081

Civil Service pensions

Pension benefits are provided through the Civil Service pension arrangements. Civil servants may be in one of four
statutory based Ôfinal salaryÕ defined benefit schemes (classic, premium, classic plus and nuvos). The schemes are
unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic,
premium, classic plus and nuvos are increased annually in line with changes in the Retail Price Index. New entrants may
choose between membership of nuvos or joining a good quality Ômoney purchaseÕ stakeholder arrangement with a
significant employer contribution (partnership pension account).

Employee contributions are set at 1.5% of pensionable earnings for classic and 3.5% for premium, classic plus and
nuvos. Benefits in classic accrue at the rate of 1/80th of pensionable salary for each year of service. In addition, a lump
sum equivalent to three yearsÕ pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of
final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum (but members may
commute some of their pension to provide a lump sum). Classic plus is essentially a variation of premium, but with
benefits in respect of service before 1 October 2003 calculated broadly in the same way as classic. For nuvos, benefits
accrue at the rate of 2.3% of pensionable salary for each year of service and there is an option to commute some
pension for a lump sum payable on retirement.

The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of
between 3% and 12.5% (depending on the age of the member) into a stakeholder pension product chosen by the
employee from a selection of approved products. The employee does not have to contribute but where they do make
contributions, the employer will match these up to a limit of 3.5% of pensionable salary (in addition to the employerÕs
basic contribution). Employers also contribute a further 0.8% of pensionable salary to cover the cost of centrallyprovided
risk benefit cover (death in service and ill health retirement).

Salary and pension entitlements

The following sections provide details of the remuneration and pension interests of the Chief Executive. Fees and
expenses received by Board members are shown above.
No Board member has any pension entitlement and no benefits in kind subject to UK taxation were received by any
senior managers (Chief Executive and Board members) during the periods covered by these accounts.

Remuneration

Salary includes gross salary, performance pay or bonuses and any other allowance to the extent that it is subject to
UK taxation. 2008/09 comparative has been adjusted for retrospective December 2009 pay award.

NOTE: This section contains a table of information
which cannot be converted to text.  Please see the 
original PDF for reference. 

2009/10
2008/09
Remuneration
£Õ000
Benefits in kind
£
Remuneratiion
£Õ000
Benefits in kind
£
Jane Hope
Chief Executive
Salary
70-75
0
70-75
0

In addition to the above remuneration, on behalf of the chief executive the Park Authority made employerÕs pension
and national insurance contributions of £20,000-£25,000 in 2009/10 and £20,000-£25,000 in 2008/09.

Pension entitlements
Accrued pension
at age 60 as at
31 Mar 2010 and
related lump sum
£Õ000
Real increase in
pension and
related lump sum
at age 60
£Õ000
CETV (a) at
31 Mar 2010
£Õ000
CETV (a) at
31 Mar 2009
£Õ000
Real increase in
CETV (b)
£Õ000
Jane Hope
Chief Executive
15-20 plus lump
sum of 50-55
0-2.5 plus lump
sum of 2.5-5 369 330 19

(a) The Cash Equivalent Transfer Value (CETV)

This is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular
point in time. The benefits valued are the memberÕs accrued benefits and any contingent spouseÕs pension payable
from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in
another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the pension
benefits they have accrued in their former scheme. The pension figures shown relate to the benefits that the individual
has accrued as a consequence of their total membership of the pension scheme, not just their service to which
disclosure applies. The CETV figures include the value of any pension benefit in another scheme or arrangement which
the individual has transferred to the Civil Service pension arrangements. They also include any additional pension
benefit accrued to the member as a result of their purchasing additional years of pension service in the scheme at their
own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of
Actuaries and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance

Tax which may be due when pension benefits are drawn.

(b) The real increase in the value of the CETV

This reflects the increase in CETV effectively funded by the employer. It does not include the increase in accrued
pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from
another pension scheme or arrangement) and uses common market valuation factors for the start and end of the
period.

(This concludes the audited part of the Remuneration Report).

Signed on behalf of the Cairngorms National Park Authority
Jane Hope, Chief Executive 25 June 2010

NATIONAL PARK BOARD MEMBERS

The Cairngorms National Park AuthorityÕs Board comprises 23 members. The Scottish Government appoints eight
members directly; appoints a further nine following Council nominations by the four councils in the Park area
(Highland, Aberdeenshire, Moray and Angus Councils) and five are elected locally. The members will serve between
18 months and four years.

NOTE: This section contains a table of information
which cannot be converted to text.  Please see the 
original PDF for reference. 

All members served throughout the period covered by these accounts.
David Green (Convener) (a) (F), (S&R)
Eric Baird (Deputy Convener) (a) (A), (S&R)
Peter Argyle (b)
Francis (Stuart) Black (b)
Geva Blackett (c) (S&R)
Duncan Bryden (Convener, Planning Committee) (a)
Jaci Douglas (b)
Dave Fallows (b) (F)
Lucy Grant (a) (A)
Drew Hendry (b)
Marcus Humphrey (b)
Robert Kinnaird (a) (S&R)
Eleanor Mackintosh (c) (F)
Ian Mackintosh (b) (A)
Anne MacLean (a) (S&R)
Alistair MacLennan (a)
Mary McCafferty (c) (F)
William McKenna (c)
Fiona Murdoch (b) (A)
Andrew Rafferty (c)
Gregor Rimell (b)
Richard Stroud (b) (F)
Susan Walker (a) (A)
(a) Scottish Government appointee
(b) Local Authority nominee
(c) Locally elected
Committee membership (at present):
Planning (all Board members sit on the Planning Committee)
Finance (F)
Audit (A)
Staffing & Recruitment (S&R)
Membership of committees is reviewed annually.
Attendance at Board and Planning Committee meetings is set out in Appendix 1 (see page 28).

David Green is the Convener of the Cairngorms National Park Authority Board. A self-employed crofter who has
diversified into tourism based on the croft, he lives in Ross and Cromarty. He was a Crofters Commissioner until
September 2002, Convener of Highland Council until May 2003 and Chair of the Crofters Commission until March
2007. In June 2007 David was awarded an OBE for services to Local Government and crofting.
Peter Argyle (Scottish Liberal Democrat) has been a councillor since May 1999 and is Ward Councillor for
Aboyne, Upper Deeside and Donside. He is Chair of the Aberdeenshire Council Infrastructure Services Committee
and a past Chair of the Scrutiny and Audit Committee. Previously served on the CNPA Board from March 03 until
September 04 and was reappointed in March 09. He is Chair of Mid Deeside Limited in Aboyne and on the Board
of Royal Deeside Partnership.

Eric Baird is currently Deputy Convener of the Park Authority Board and Convener of the Audit Committee. He
is Head Ranger on the Glen Tanar estate, has specialist knowledge of countryside issues, and sits on the Board of
Governors of the Macaulay Land Use Research Institute.
Cllr Francis (Stuart) Black (Highland Council - Scottish Liberal Democrat) is Chairman of Explore Abernethy, a
community project involving the creation of a local footpath network. He serves on a number of Highland Council's
committees, is a former member of the Cairngorms Partnership Board and has been a Strathspey hill farmer for
over 40 years.

Geva Blackett, was elected for Ward 5. As a Board Member she works hard for the future of our iconic, managed
landscapes so that local people, living in local houses can do local jobs. She sits on the CNPAÕs Staffing and
Recruitment Committee.

Duncan Bryden is a self employed Rural Development consultant with a professional ecological background. He
has undertaken a wide range of recreational and tourism-related activities within the Park and is Convener of the
CNPAÕs Planning Committee.

Cllr Jacqueline (Jaci) Douglas (Highland Council) was elected to Highland Council in May 2007 as an
Independent councillor. Jaci returned to Scotland in 2003, having lived and worked abroad for a number of years,
and lives and works in Grantown on Spey. She was a founding member and organiser of the Cairngorms Farmers
Market and worked for Grantown Initiative, an organisation which seeks to support local community groups. Jaci
sits on the council's Education, Culture and Sport Committee and Gaelic Committee. She is on the Housing and
Social Work Strategic Committee at Highland Council and is ChildrenÕs Champion for Inverness, Nairn, Badenoch
and Strathspey as well as Transitions Champion for Highlands.

Cllr David Fallows (Highland Council), was elected to Highland Council in May 2007 and became a Board
Member in September 2007. He sits on the Council's Housing and Social Work, TEC Services and Inverness, Nairn,
Badenoch and Strathspey Planning Committees, as well as the Highland and Islands Joint Fire Board. He also
represents the council on the Highland Disability Sport Committee and the Speyside Way Management Group. He
is a member of the Park Authority's Finance Committee and a Park nominated Director of the Cairngorms
Outdoor Access Trust. He also writes on, and photographs the sport of Shinty for the Strathspey and Badenoch
Herald and is Chair of the area shinty coaching committee.

Lucy Grant is a partner in the family livestock farm and has developed a good general knowledge of the area's
issues. She sits on the CNPAÕs Audit Committee.

Cllr Andrew (Drew) Hendry (Highland Council) was elected as a Highland Councillor in May 2007. He has an
established background in senior retail and manufacturing management and has worked at Director level with a
multinational company before setting up his own Business in 1999. He is chair of the council's Planning, Environment
and Development Committee and sits on the Education, Culture and Sport Committee.

Cllr Marcus Humphrey (Aberdeenshire Council - Scottish Conservative) is a Chartered Surveyor who has been
involved in farming, forestry, tourism and land management in the Park area. He is currently Deputy Provost of
Aberdeenshire Council and Vice-Chairman of the Council's Infrastructure Services Committee.
Robert Kinnaird from Kingussie, is Principal, Glenmore Lodge, sportscotland's national outdoor training centre
based at Glenmore. He is chair of the National Park branding group, member of LOAF and sits on the CNPAÕs
Staffing and Recruitment Committee. He holds both an international mountain leader licence and international ski
instructor's licence.

Eleanor Mackintosh was elected for Ward 4 and is Convener of the CNPAÕs Finance Committee. She lives in
Glenlivet and helps at home on the farm having previously been a financial adviser with the Clydesdale Bank. She
serves on various community groups.

Cllr Ian Mackintosh (Angus Council) is a farmer (third generation) and member for Kirriemuir and Dean
Ward. At present, Ian is a member of NFUS Environment and Land Use Committee and has been president of
Angus NFU twice. He is a land manager member of Angus Local Access Forum. Ian has over 14 years experience
in local government; is Depute Leader of the Council, Convener of the Council's Civic Licensing Committee and
Convener of the Tayside Police Joint Board and is a member of Angus Community Planning Partnership. Ian is a
member of the River Tay Basin Management Area Advisory Group. He sits on the CNPAÕs Audit committee.
Anne MacLean OBE has an interest in Human Resource issues, disability rights and awareness and is a board
member of the Highland Society for Blind People and the Royal National Institute of the Blind Scotland. She served
as an Assessor for the Commissioner for Public Appointments in Scotland for six years until June 2006. In January
2009 she was appointed Convener of the Mobility and Access Committee for Scotland. She Chairs the CNPA

Staffing and Recruitment Committee and sits on the Staff Consultative Forum.

Alastair MacLennan was born in Grantown-on-Spey and is a farmer who has diversified into tourism and other
business ventures. Being a demonstration farmer since 2000, he has been at the forefront of the LEAF (Linking
Environment and Farming) initiative and is a director of the Cairngorms Farmers Market Association. He sits on the
National Access Forum, Cairngorms FWAG (Farming and Wildlife Advisory Group), and the National Farmers
Union's Land Use and Environment Committee. He is Chairman of the Cairngorms Farmers Market Association
and was previously a board member with the Cairngorms Partnership.

Mary McCafferty was elected for Ward 3 and has a thirty year professional background in education. She is a
Justice of the Peace and currently serves on the Bench at Badenoch & Strathspey District Court. She is a member of
the Community Council and works closely with a number of local agencies, is a Trustee and secretary of the
Dulnain Bridge Village Hall and administrator for Dulnain Bridge Community Company. She has also been involved
with the Sunshine Club for twenty five years and is a member of Grantown Twinning Association. She sits on the
CNPAÕs Finance Committee.

William McKenna was elected for Ward 2. He worked locally in the skiing business for over 20 years and is a
part-time ranger on the Rothiemurchus Estate. He is currently involved with Aviemore Community Company, the
Citizens Advice Information Service and CRAGG (Cairngorms Rothiemurchus and Glenmore Group) as a member
of the community association.

Cllr Fiona Murdoch (Moray Council) was brought up on a farm outside Dufftown in Moray. Previously a
partner in the family farm business, Fiona also worked as a journalist for twenty years. In more recent years, Fiona
has run several businesses, including a holiday cottage business, a small printing firm, a specialist whisky shop and
was one of the original instigators of Spirit of Speyside Whisky Festival. Fiona was elected as independent councillor
for the Speyside-Glenlivet ward in May 2007. She sits on the CNPAÕs Audit Committee.
Andrew Rafferty was elected for Ward 1 and is the principal vet in the Strathspey Veterinary Centre. He lives on
a smallholding near Aviemore and is a director of Laggan Forest Trust.
Gregor Rimell councillor Badenoch and Strathspey. Since 1992 he has been sub postmaster in Kingussie. He lives
at Newtonmore.

Cllr Richard Stroud (Aberdeenshire Council - Liberal Democrat) previously worked with the Community
Education Service in the Upper Deeside/Donside areas and has considerable contact with community organisations
and individuals in these areas through his professional work. He is Chair of Aberdeenshire Councils Education,
Learning and Leisure Committee. He is an active mountaineer and ski mountaineer. He sits on the CNPAÕs Finance
Committee.

Susan Walker OBE is a specialist in water and land. She is currently a board member of the Scottish Environment
Protection Agency and Chair of its North Region Board. She is an adviser to the Deer Commission for Scotland
and the Grampian Area of Scottish Natural Heritage and a member of Waterwatch Scotland. She sits on the
CNPAÕs Audit Committee.

STATEMENT OF NATIONAL PARK AUTHORITY'S
RESPONSIBILITIES

Under Section 25(1) of the National Parks (Scotland) Act 2000, the Cairngorms National Park Authority (CNPA) is
required to prepare financial statements for each financial year in the form and on the basis determined by the
Scottish Ministers.

The financial statements are prepared on an accruals basis and must show a true and fair view of the state of affairs of
the Park Authority at the financial period end and of the income and expenditure, recognised gains and losses and
cash flows for the financial year.

In preparing those financial statements, the CNPA is required to:

¥ observe the financial statements direction issued by Scottish Ministers, including the relevant accounting and
disclosure requirements, and apply suitable accounting policies on a consistent basis;

¥ make judgments and estimates on a reasonable basis;

¥ state whether applicable accounting standards have been followed, and disclose and explain any material
departures in the financial statements; and

¥ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
CNPA will continue in operation.

In addition, the CNPA has general responsibility for taking such steps as are reasonably open to it to safeguard the
assets of the CNPA and to prevent and detect fraud and other irregularities.

STATEMENT OF ACCOUNTABLE OFFICERÕS RESPONSIBILITIES

The Accountable Officer of the Scottish GovernmentÕs Rural Directorate designated the Chief Executive of the
Cairngorms National Park Authority as Accountable Officer for the Authority.
The Chief ExecutiveÕs relevant responsibilities as Accountable Officer for the Park Authority include responsibility for
propriety and regularity of the public finances and for the keeping of proper records are set out in the Non-
Departmental Public Bodies Accountable OfficersÕ Memorandum, issued by the Treasury and published in
Government Accounting. This includes requirement to comply with the guidance set out in the Scottish Public
Finance Manual.

The CNPAÕs Management Statement sets out the specific responsibilities of the Chief Executive, as Accountable
Officer. In respect of accounting for the Park AuthorityÕs activities these include responsibility to:

¥ sign the accounts and be responsible for ensuring that proper records are kept relating to the accounts and
that the accounts are properly prepared and presented in accordance with any directions issued by the
Scottish Ministers;

¥ sign a Statement of Accountable OfficerÕs responsibilities, for inclusion in the annual report and accounts:

¥ sign a Statement on Internal Control regarding the AuthorityÕs system of internal control, for inclusion in the
annual report and accounts.

Jane Hope, Chief Executive 25 June 2010

STATEMENT OF INTERNAL CONTROL
for the period ended 31 March 2010

Scope of responsibility

As Accounting Officer, I have responsibility for maintaining a sound system of internal control that supports the
achievement of the Cairngorms National Park AuthorityÕs policies, aims and objectives, whilst safeguarding the public
funds and departmental assets for which I am personally responsible, in accordance with the responsibilities assigned
to me. Those personal responsibilities are set out in the Management Statement for the Cairngorms National Park
Authority. In discharging these responsibilities I am held accountable by the AuthorityÕs Board, and by Scottish
Ministers. In particular, the AuthorityÕs Board has Audit, Finance and Staffing and Recruitment Committees in place,
each of which has remits to ensure elements of the AuthorityÕs financial management and internal control systems,
including risk management systems, are in place and function effectively.

The Scottish Public Finance Manual (SPFM) is issued by the Scottish Ministers to provide guidance to the Scottish
Government and other relevant bodies on the proper handling of public funds. It sets out the relevant statutory,
parliamentary and administrative requirements, emphasizes the need for economy, efficiency and effectiveness, and
promotes good practice and high standards of propriety. An element of my responsibility as Accountable Officer is
to ensure the AuthorityÕs internal control systems comply with the requirements of the SPFM and hence ensure
good systems of internal control.

The purpose of the system of internal control

The system of internal control is designed to manage rather than eliminate the risk of failure to achieve the
organisationÕs policies, aims and objectives. It 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 the principal risks to the
achievement of the organisationÕs policies, aims and objectives; to evaluate the nature and extent of those risks and
to manage them efficiently, effectively and economically.
The process within the Cairngorms National Park Authority accords with guidance from the Scottish Ministers
provided in the SPFM and has been in place for the year ended 31 March 2010 and up to the date of approval of the
annual report and accounts.

Capacity to handle risk

Leadership for the process of risk management within the organisation is provided at the highest level, with the Park
Authority Board recognising the importance of risk management in the activities of the organisation. Through
adoption of risk based monitoring reports for delivery of Corporate and Operational Plan objectives, National Park
Plan delivery, and for wider assessment of organisational performance, the Board has provided leadership on the
importance of risk management at the highest level within the organisation.

The BoardÕs Audit Committee and Management Team are each actively involved in leading on embedding risk
management processes throughout the organisation. Both these groups consider the management of strategic risk
at regular intervals, reviewing and updating the strategic risk register and seeking to ensure that the required actions
to manage risk at a strategic level are appropriately reflected and incorporated in operational delivery plans.
Accordingly, a risk management focus has been developed into key control processes, including quarterly
organisational performance monitoring and project initiation and delivery documents.

The risk and control framework

All bodies to which the SPFM is directly applicable must operate a risk management in accordance with relevant
guidance issued by the Scottish Ministers. The general principles for a successful risk management strategy are set
out in the SPFM.

The AuthorityÕs strategic risk management is based on an overarching risk management strategy together with a
schedule of key risks. The strategy and schedule of key strategic risks was revised to reflect the AuthorityÕs new
Corporate Plan at a workshop of Board members and senior managers in December 2008, and has since been
regularly reviewed and adapted as required by the Audit Committee and Management Team.

The Authority has also adopted a risk based approach to the management and monitoring of its Operational and
Corporate Plan delivery, and of key aspects of organisational performance, whereby any increased risk to
achievement of targets is assessed, reported to Board and Management Team, and, where required, remedial action
determined and implemented.

In terms of information management and security, a requirement to maintain close scrutiny on the AuthorityÕs IT
functionality remains highlighted within the strategic risk register and is therefore reviewed regularly by Management
Team and Audit Committee. The AuthorityÕs Staff Handbook sets out policies for both Data Protection compliance
and Information and Communications Technology use, which make clear the importance of secure handling of
information and data. These policies have, over the course of 2009/10, been reinforced by Data Protection training
for all staff, with more targeted, advance training for relevant senior staff.

More generally, the organisation is committed to a process of continuous development and improvement: developing
systems in response to any relevant reviews and developments in best practice in this area. In particular, in the
period covering the year to 31 March and up to the signing of the accounts the organisation has:

¥ Determined and implemented an annual internal audit review plan through the audit Committee;

¥ Commissioned further independent reviews of its LEADER grant and planning services;

¥ Acted on a range of internal audit recommendations for further improvements in the internal control
framework;

¥ Continued delivery of a Best Value action plan, seeking prioritised, continuous improvement in service
delivery.

¥ Continued implementation of a coordinated framework within which public stakeholders will, along with the
Authority, deliver priority actions set out in the National Park Plan agreed by Scottish Ministers.

¥ Further developed a framework to review effectiveness of implementation of Corporate and National Park
Plan objectives. This framework will also support the management of risks by these public stakeholders in
their delivery of National Park Plan actions.

Review of effectiveness

As Accountable Officer, I have responsibility for reviewing the effectiveness of the system of internal control. My
review is informed by:

¥ the executive managers within the Authority who have responsibility for the development and maintenance
of the internal control framework;

¥ the work of the internal auditors, who submit regular reports to the organisationÕs Audit Committee which
include the Head of Internal AuditÕs independent and objective opinion on the adequacy and effectiveness
of the organisationÕs systems of internal control together with recommendations for improvement;

¥ comments made by the external auditors in their management letter and other reports.

Advice from independent internal and external auditors forms an essential element in informing my review of the
effectiveness of the systems of internal control within the Authority. The BoardÕs Audit Committee also plays a vital
role in this regard, through its review of audit recommendations arising from reviews of internal control systems and
its consideration of proposed management action. In particular, the Audit Committee is tasked with monitoring the
operation of the internal control function and bringing any material matters to the attention of the full Board.
Detailed findings of all audit reviews are made available to both management and the Audit Committee. The Audit
Committee produces an Annual Report to the Board assessing the adequacy and effectiveness of the AuthorityÕs
internal controls.

The internal audit function is an integral element of the AuthorityÕs internal control systems. Deloitte LLP were
appointed as the AuthorityÕs internal auditors in June 2004 and have undertaken a comprehensive review of key
internal control systems since their appointment. Over the course of the year to 31 March, the internal auditors
have reported to the Audit Committee on their independent reviews of the AuthorityÕs budgetary control, Human
Resources appraisal arrangements, National Park Plan delivery arrangements, brand management, and undertook a
detailed follow-up review of implementation of actions to address control weaknesses highlighted in previous yearsÕ
recommendations. Work is currently underway on planning enforcement, while independent reviews of LEADER
grant systems and the planning services have also been commissioned. The BoardÕs Audit Committee has considered
reports on each of these completed reviews and approved management actions required to address any
recommendations made. Recommendations made were for improvements to control systems, with all reviews
finding adequate control systems to be in place and operational.

Appropriate action is in place to address any weaknesses identified and to ensure the continuous improvement of the
system.

Senior Managers on the AuthorityÕs Management Team also play an important role in implementing control systems
and advising on any improvements required. The Head of Corporate Services is particularly involved in implementing
a variety of internal control process, ensuring a continuing process of review and improvement to these systems is in
place, and taking a leading role in embedding the principles of risk management throughout the organisation.
The internal auditors have reported that, overall, adequate internal controls were in place within the Authority over
the course of 2009/10.

Jane Hope, Chief Executive 25 June 2010

INDEPENDENT AUDITORÕS REPORT
TO THE MEMBERS OF THE CAIRNGORMS NATIONAL PARK AUTHORITY, THE
AUDITOR GENERAL FOR SCOTLAND AND THE SCOTTISH PARLIAMENT

I have audited the financial statements of Cairngorms National Park Authority for the year ended 31 March 2010
under the National Parks (Scotland) Act 2000. These comprise the Net Expenditure Account, the Statement of
Financial Position, the Statement of Cash Flows, the Statement of Changes in TaxpayersÕ Equity and the related
notes. These financial statements have been prepared under the accounting policies set out within them. I have also
audited the information in the Remuneration Report that is described in that report as having been audited.
This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and
Accountability (Scotland) Act 2000 and for no other purpose. In accordance with paragraph 123 of the Code of
Audit Practice approved by the Auditor General for Scotland, I do not undertake to have responsibilities to
members or officers, in their individual capacities, or to third parties.

Respective responsibilities of the Board, Chief Executive and auditor

The Board and Chief Executive are responsible for preparing the Annual Report, which includes the Remuneration
Report, and the financial statements in accordance with the National Parks (Scotland) Act 2000 and directions made
thereunder by the Scottish Ministers. The Chief Executive is also responsible for ensuring the regularity of
expenditure and receipts. These responsibilities are set out in the Statements of National Park AuthorityÕs
Responsibilities and Accountable OfficerÕs Responsibilities.

My responsibility is to audit the financial statements and the part of the Remuneration Report to be audited in
accordance with relevant legal and regulatory requirements and with International Standards on Auditing (UK and
Ireland) as required by the Code of Audit Practice approved by the Auditor General for Scotland.

I report to you my opinion as to whether the financial statements give a true and fair view and whether the financial
statements and the part of the Remuneration Report to be audited have been properly prepared in accordance with
the National Parks (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers. I report to you
whether, in my opinion, the information which comprises the Management Commentary included in the Annual
Report is consistent with the financial statements. I also report whether in all material respects the expenditure and
receipts shown in the financial statements were incurred or applied in accordance with any applicable enactments
and guidance issued by the Scottish Ministers.

In addition, I report to you if, in my opinion, the body has not kept proper accounting records, if I have not received
all the information and explanations I require for my audit, or if information specified by relevant authorities
regarding remuneration and other transactions is not disclosed.

I review whether the Statement on Internal Control reflects the bodyÕs compliance with the Scottish GovernmentÕs
guidance, and I report if, in my opinion, it does not. I am not required to consider whether this statement covers all
risks and controls, or form an opinion on the effectiveness of the bodyÕs corporate governance procedures or its
risk and control procedures.

I read the other information contained in the Annual Report and consider whether it is consistent with the audited
financial statements. This other information comprises only National Park Board Members and the unaudited part of
the Remuneration Report. I consider the implications for my report if I become aware of any apparent
misstatements or material inconsistencies with the financial statements. My responsibilities do not extend to any
other information.

Basis of audit opinion

I conducted my audit in accordance with the Public Finance and Accountability (Scotland) Act 2000 and International
Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board as required by the Code of Audit
Practice approved by the Auditor General for Scotland. My audit includes examination, on a test basis, of evidence
relevant to the amounts, disclosures and regularity of expenditure and receipts included in the financial statements
and the part of the Remuneration Report to be audited. It also includes an assessment of the significant estimates
and judgements made by the Board and Chief Executive in the preparation of the financial statements, and of
whether the accounting policies are appropriate to the bodyÕs circumstances, consistently applied and adequately
disclosed.

I planned and performed my audit so as to obtain all the information and explanations which I considered necessary
in order to provide me with sufficient evidence to give reasonable assurance that the financial statements and the
part of the Remuneration Report to be audited are free from material misstatement, whether caused by fraud or
error, and that in all material respects the expenditure and receipts shown in the financial statements were incurred
or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. In forming
my opinion I also evaluated the overall adequacy of the presentation of information in the financial statements and
the part of the Remuneration Report to be audited.

Opinion

Financial statements

In my opinion
¥ the financial statements give a true and fair view, in accordance with the National Parks (Scotland) Act
2000 and directions made thereunder by the Scottish Ministers, of the state of affairs of Cairngorms
National Park Authority as at 31 March 2010 and of its net expenditure, recognised gains and losses and
cash flows for the year then ended

¥ the financial statements and the part of the Remuneration Report to be audited have been properly
prepared in accordance with the National Parks (Scotland) Act 2000 and directions made thereunder by
the Scottish Ministers

¥ information which comprises the Management Commentary included in the Annual Report is consistent
with the financial statements.

Regularity

In my opinion in all material respects the expenditure and receipts shown in the financial statements were incurred
or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers.
Signature Stephen OÕHagan CPFA
Senior Audit Manager
Audit Scotland
7th Floor
Plaza Tower
Date East Kilbride
G74 1LW

NOTE: This section contains a table of information
which cannot be converted to text.  Please see the 
original PDF for reference. 

Net Expenditure Account
for the year ended 31 March 2010
2010 2009
Note £ £
Expenditure
Board members and staff costs 3, 4 2,324,054 2,246,512
Operational Plan expenditure 3, 5 2,583,248 2,112,355
Other operating costs 3, 6 603,386 656,588
Depreciation 9 62,311 63,793
5,572,999 5,079,248
Income
Operational Plan income 3, 8 666,905 457,571
Other income 3, 8 44,092 66,343
710,997 523,914
Net Expenditure 4,862,002 4,555,334
Cost of Capital 7 12,365 13,211
Interest receivable 0 -6,963
Net Expenditure after cost of capital
and interest 4,874,367 4,561,582
No activities were discontinued during the year.
The notes on pages 22 to 32 form part of these accounts.
Statement Of Financial Position
as at 31 March 2010
2010 2009 1 April 2008
Note £ £ £
Non-current assets
Property, plant and equipment 9 223,122 225,155 256,234
Total non current assets 223,122 225,155 256,234
Current assets
Trade and other receivables due within one year 11 370,037 270,840 247,772
Cash and cash equivalents 12 38,641 213,285 140,634
Total current assets 408,678 484,125 388,406
Total assets 631,800 709,279 644,640
Current liabilities
Trade and other payables due within one year 13 -381,074 -401,552 -334,542
Total current liabilities -381,074 -401,552 -334,542
Non current assets less net current assets 250,726 307,727 310,098
Non-current liabilities
Total non current liabilities 0 0 0
Assets less liabilities 250,726 307,727 310,098
Reserves
General reserve 14 250,726 307,727 310,098
250,726 307,727 310,098
Signed on behalf of the Cairngorms National Park Authority
Jane Hope
Chief Executive Authorised for issue
25 June 2010 25 June 2010
The notes on pages 22 to 32 form part of these accounts
Statement Of Cash Flows
for the year ended 31 March 2010
2010 2009
Note £ £
Cash flows from operating activities
Net Expenditure after cost of capital and interest -4,874,367 -4,561,582
Adjustments for non cash transactions
Depreciation 62,311 63,793
Gain on disposal of fixed assets 0 -1,918
Cost of capital 12,365 13,211
Movements in working capital
(Increase) in trade and other receivables -99,197 -23,068
(Decrease)/ Increase in staff benefits provision -1,826 18,120
(Decrease)/ Increase in trade and other payables -18,652 48,889
Net cash outflow from operating activities -4,919,366 -4,442,555
Cash flows from investing activities
Purchase of property, plant and equipment -60,277 -38,695
Proceeds from disposal of property, plant and equipment 0 7,900
Net cash outflow from investing activities -60,277 -30,795
Cash flows from financing activities
Grant funding 4,805,000 4,546,000
Net cash flow from financing 4,805,000 4,546,000
Net increase in cash and cash equivalents in the year -174,644 72,651
Cash and cash equivalents at the beginning of the year 213,285 140,634
Cash and cash equivalents at the end of the year 12 38,641 213,285
The notes on pages 22 to 32 form part of these accounts
Statement Of Changes In Taxpayers' Equity
for the year ended 31 March 2010
General Total
Note Reserve Reserves
£ £
Balance at 31 March 2008 356,015 356,015
Changes in accounting policy -45,917 -45,917
Restated balance at 1 April 2008 14 310,098 310,098
Changes in Taxpayers' Equity 2008-09
Non cash charges - cost of capital 13,211 13,211
Net Expenditure after cost of capital and interest -4,561,582 -4,561,582
Grant funding 4,546,000 4,546,000
Balance at 31 March 2009 14 307,727 307,727
Changes in accounting policy 0 0
Restated balance at 1 April 2009 307,727 307,727
Changes in Taxpayers' Equity 2009-10
Non cash charges - cost of capital 12,365 12,365
Net Expenditure after cost of capital and interest -4,874,367 -4,877,822
Grant funding 4,805,000 4,805,000
Balance at 31 March 2010 14 250,726 247,271
The notes on pages 22 to 32 form part of these accounts

NOTES TO THE ACCOUNTS

For the Year Ended 31 March 2010

1 Statement of Accounting Policies

In accordance with the accounts direction issued by Scottish Ministers under section 19(4) of the Public Finance and
Accountability (Scotland) Act 2000 these accounts have been prepared in compliance with the principles and
disclosure requirements of the Government Financial Reporting Manual, which follows generally accepted
accounting practice as defined in International Financial Reporting Standards (IFRS) as adopted by the European
Union and the Companies Act 2006 to the extent that it is meaningful and appropriate in the public sector context.
The particular accounting policies adopted by Cairngorms National Park Authority are described below. They have
been applied consistently in dealing with items considered material in relation to the accounts.
The accounts are prepared using accounting policies and, where necessary, estimation techniques which are selected
as the most appropriate for the purpose of giving a true and fair view in accordance with the principles set out in
International Accounting Standard 8: Accounting Policies, Changes in Accounting Estimates and Errors. Changes in
accounting policies, which do not give rise to a prior year adjustment, are reported in the relevant note.

1.1 Accounting Convention

These accounts have been prepared under the historical cost convention modified to account for the revaluation of
property, plant and equipment, intangible assets and, where material, current asset investments and inventories to
fair value as determined by the relevant accounting standard.

1.2 Change of Accounting Policy Ð IFRS First Time Adoption

These financial statements have been prepared under International Financial Reporting Standards for the first time
and the comparatives have been restated from UK Generally Accepted Accounting Policy (UK GAAP) where
required. The reconciliation to IFRS from the previously published UK GAAP accounts is summarised at Note 2.
New Financial Instruments Standards FRS 25, FRS 26 and FRS 29 as interpreted and adapted by the Government
Financial Reporting Manual (FReM) were adopted under UK GAAP in 2008-09. Prior year comparatives were
restated to reflect these standards. These standards are identical to their equivalent IFRS standards, IAS 32, IAS 39
and IFRS 7. Therefore the financial statements have not been restated for financial instruments.

1.3 Accounting Period

The accounting period commenced on 1 April 2009 and ended on 31 March 2010.

1.4 Non Current Assets - Property, Plant and Equipment (PPE)

Recognition

All PPE assets will be accounted for as non-current assets unless they are deemed to be held-for-sale.
Assets classified as under construction are recognised in the balance sheet to the extent that money has been paid
or a liability has been incurred.

Capitalisation

The minimum levels for capitalisation of a property, plant, or equipment asset within Cairngorms National Park
Authority equipment and vehicles is £500; Information and Communications Technology (ICT) systems are
capitalised where the pooled value exceeds £500; substantial improvements to leasehold properties are also
capitalised.

Valuation

From 1 April 2007, plant and equipment assets that have short useful lives or low values or both are no longer
revalued using indices but are reported at depreciated historic cost as a proxy for fair value.

Losses in value reflected in valuations are accounted for in accordance with International Financial Reporting
Standard 11, Impairment of Assets. The consumption of economic benefits is taken to the revaluation reserve to the
extent of any previous gain and any further loss is charged to the Outturn Statement.

Subsequent Cost

Subsequent costs are included in the assetÕs carrying amount or recognised as a separate asset, as appropriate, only
when it is probably that future economic benefits associated with the item will flow to Cairngorms National Park
Authority and the cost of the item can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to the operation cost statement during the financial
period to which they are incurred.

1.5 Depreciation

Depreciation is provided at rates calculated to write off the valuation of buildings and other PPE assets by equal
instalments over their estimated useful lives, which are normally in the following ranges:

Park Entry Markers
Office equipment
25 years
5 years
ICT equipment 3 years
Leasehold improvements Over the length of the lease
Motor vehicles 5 years
Assets under construction are not depreciated.

1.6 Financial Instruments

The Park Authority does not hold any complex financial instruments. The only financial instruments included in the
accounts are Financial Assets in the form of cash, trade receivables and accrued income and Financial Liabilities in
the form of trade payables and accruals.
Financial instruments are recognised in accordance with IAS 37, IAS 39 and IFRS 7 as interpreted and adapted by the
FReM, initially at fair value less provision for impairment. A provision for impairment is made when there is evidence
that the Park Authority will be unable to collect an amount due in accordance with agreed terms.

1.7 Inventories

The cost of stationery and publications is charged as an expense within the Operating Cost Statement.

1.8 Income

Operating income is income that relates directly to the operating activities of Cairngorms National Park Authority.
It includes fees and charges for services provided to external customers.

1.9 Grant in Aid

The Authority receives grant in aid from the Scottish Government to finance its net expenditure. Following financial
reporting guidance, grant in aid is credited to the General Fund and net expenditure on activities funded by grant in
aid is charged to this fund.

1.10 Cost of Capital Charge

A charge, reflecting the cost of capital utilised by Cairngorms National Park Authority is included in outturn
expenditure. The charge for each item in the balance sheet is calculated on the basis of the average net book value
of that item over the year. For 2009-10 the charge is calculated at the GovernmentÕs standard rate of 3.5% (2008-
09: 3.5%) in real terms on all assets less liabilities.

1.11 Pension Costs

Present and past employees are covered by the provisions of the Principal Civil Service Pension Scheme (PCSPS)
which is a defined benefit scheme. The Authority recognises the expected cost of providing pensions for their
employees on a systematic and rational basis over the period during which they benefit from their services by
payment to the PCSPS of amounts calculated on an accruing basis. (Relevant disclosures are reported in Note 15.)
Liability for the payment of future benefits is a charge to the PCSPS.
In respect of any defined contribution schemes, the Authority recognises the contributions payable for the year.

1.12 Leases

Where substantially all the risks and rewards of ownership of a leased property are borne by the entity, it is
recorded as a non-current asset and a corresponding creditor recorded in respect of the debt due to the lessor,
with the interest element of the finance lease payment charged to the outturn statement. Rentals payable in respect
of operating leases will be charged to the outturn statement on a straight- line basis over the term of the lease.

1.13 Value Added Tax (VAT)

Most of the activities of Cairngorms National Park Authority are outside the scope of VAT, and in general output
tax does not apply and input tax on purchases is not recoverable. Irrecoverable VAT is charged to the relevant
expenditure category or included in the capitalised purchase cost of fixed assets.

1.14 Trade Receivables

All material amounts due as at 31 March 2010 have been brought into the Operating Cost Statement irrespective of
when actual payments were received.

1.15 Cash and Cash Equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.16 Trade Payables

All material amounts outstanding as at 31 March 2010 have been brought into the Operating Cost Statement
irrespective of when actual payments were made.

1.17 Short Term Employee Benefits

A liability and an expense is recognised for holiday days, holiday pay, bonuses and other short-term benefits when
the employees render service that increases their entitlement to these benefits. As a result an accrual has been
made for holidays earned but not taken.

1.18 Segmental Reporting

IFRS 8 Segmental Reporting requires operating segments to be identified on the basis of internal reports about
components of Cairngorms National Park Authority that are regularly reviewed by the chief operating decision
maker in order to allocate resources to the segments and assess their performance. Cairngorms National Park
Authority reports on seven segments, six drawn from the current National Park Plan and one from the Park
AuthorityÕs current Corporate Plan.

Notes to the Accounts
for the year ended 31 March 2010 (continued)
2 First-time adoption of IFRS General Total
Reserve Reserve

NOTE: This section contains a table of information
which cannot be converted to text.  Please see the 
original PDF for reference. 

£ £
Balance at 31 March 2009 under UK GAAP 371,765 371,765
Adjustment for IAS 19 Employee benefits -64,038 -64,038
Restated balance at 1 April 2009 under IFRS 307,727 307,727
Net Expenditure for 2008-09 under UK GAAP 4,545,070
Adjustment for IAS 19 Employee benefits 18,120
Net Expenditure for 2008-09 under IFRS 4,563,190
Balance at 31 March 2008 under UK GAAP 356,015 356,015
Adjustment for IAS 19 Employee benefits -45,917 -45,917
Restated balance at 1 April 2008 under IFRS 310,098 310,098
Net Expenditure for 2007-08 under UK GAAP 4,536,449
Adjustment for IAS 19 Employee benefits 45,917
Net Expenditure for 2007-08 under IFRS 4,582,366
3 Analysis of Net Expenditure by Segment
Board Operational Other Net
Member & Plan Operating Operational Other Segmental
Staff costs Expenditure Costs Plan Income Income Expenditure
2010 by segment £ £ £ £ £ £
Awareness & Understanding 370,310 463,380 118,478 -26,014 926,154
Sustainable Business & Tourism 383,478 757,150 115,280 -355,298 900,610
Planning and Communications 648,332 188,435 107,303 -44,092 899,977
Outdoor Access 290,356 324,509 89,882 704,747
Affordable, Sustainable Housing 246,323 228,337 68,583 543,243
Biodiversity, Landscape & Deer 243,199 298,228 61,590 -110,979 492,038
Land Management Support 142,056 323,210 42,269 -174,614 332,922
2,324,054 2,583,248 603,386 -666,905 -44,092 4,799,691
Notes to the Accounts
for the year ended 31 March 2010 (continued)
3 Analysis of Net Expenditure by Segment (continued)
Board Operational Other Net
Member & Plan Operating Operational Other Segmental
Staff costs Expenditure Costs Plan Income Income Expenditure
2009 by segment £ £ £ £ £ £
Awareness & Understanding 397,034 446,173 116,041 -62,570 896,679
Planning and Communications 572,518 177,064 167,330 -2,507 -66,343 848,062
Sustainable Business & Tourism 370,784 503,025 108,369 -200,196 781,982
Outdoor Access 335,169 322,636 97,960 755,765
Land Management Support 179,124 384,546 52,353 -159,939 456,084
Biodiversity, Landscape & Deer 238,703 163,590 69,766 -32,360 439,699
Affordable, Sustainable Housing 153,179 115,322 44,770 313,270
2,246,512 2,112,355 656,588 -457,571 -66,343 4,491,541
4 Board members and staff costs 2010 2009
£ £
Summary
Board members 193,276 198,892
Staff - Core 2,130,778 2,047,620
2,324,054 2,246,512
Board members - see Remuneration report
Fees 186,274 191,195
Social security costs 7,002 7,697
Pension costs 0 0
193,276 198,892
Staff - Core
Salaries 1,699,682 1,616,620
Social security costs 121,845 112,973
Pension costs 309,251 318,027
2,130,778 2,047,620
Average numbers employed during period No. No.
Board members 23 25
Core employees (full time equivalents - FTE) 51 51
Notes to the Accounts
for the year ended 31 March 2010 (continued)
4 Board members and staff costs (continued)
The Core employee number includes 1 staff seconded to the Park Authority (0.5 FTE) and excludes 1
Staff seconded from the Park Authority (0.5 FTE). In 2009, 3 staff were seconded to the Park Authority
(2.8 FTE) and 2 staff were seconded from the Park Authority (2.0 FTE).
5 Operational Plan expenditure 2010 2009
£ £
New LEADER programme 369,024 247,412
Outdoor Access projects 263,083 322,636
Local Plan Inquiry and other costs 197,508 71,907
Land Based Business Training 192,429 200,172
Ranger services 139,130 32,269
New LEADER Administration costs 113,545 81,978
Strengthen Business Organisations a) 91,470 0
Species and Habitat Conservation a) 87,499 0
Planning Enforcement and Monitoring a) 68,765 0
Community Needs Programme (2009 Integrated Grants) 66,536 9,807
Land Management sustainability 59,519 79,817
Publications 55,253 102,466
Visitor Information (2009 Park Entry signage) 50,219 43,662
Website b) 30,698 49,075
Park Plan b) 6,345 7,934
1,791,024 1,249,137
Other (not previously greater than £50,000) 792,224 863,218
c) 2,583,248 2,112,355
a) expenditure not greater than £50,000 in 2009.
b) expenditure greater than £50,000 in 2008.
c) the above expenditure includes the following salary costs paid to staff employed directly on
individual projects:
Staff - Project
Salaries 247,726 192,510
Social security costs 15,960 12,796
Pension costs (see note 13) 43,861 35,055
307,547 240,361
The average number of full time equivalent Project staff
employees in the year was 9 (in 2009 - 7).

Notes to the Accounts
for the year ended 31 March 2010 (continued)
6 Other operating costs 2010 2009
£ £
Board and staff costs (exc. salary costs) 197,550 253,366
Office running costs 157,804 139,703
Professional support fees 87,028 80,155
Land and buildings rentals 62,946 69,649
Information technology 45,269 57,282
Vehicles and office equipment rentals 43,215 27,014
Audit fees (external) 11,400 11,299
Employee benefits provision -1,826 18,120
603,386 656,588
7 Notional costs 2010 2009
£ £
Cost of capital for the year under UK GAAP 14,819
Adjustment for IAS 19 Employee benefits -1,608
Cost of capital for the year under IFRS (calculated at 3.5%) 12,365 13,211
8 Income 2010 2009
£ £
Operational Plan income from EU sources 377,476 217,380
Operational Plan income from other sources 289,429 240,191
Planning fees and other income 44,092 66,343
710,997 523,914

Notes to the Accounts
for the year ended 31 March 2010 (continued)
9 Property, plant and Park Entry Leasehold Information Office Motor
equipment Markers Improvement Technology Equipment Vehicles Total
£ £ £ £ £ £
Cost

At 31 March 2009 56,882 280,326 229,919 110,287 677,414
Additions 56,157 4,120 60,277
Disposals 0
At 31 March 2010 56,882 280,326 286,076 114,407 0 737,691
Depreciation
At 31 March 2009 -4,551 -169,585 -204,273 -73,849 -452,259
Charged in the year -2,275 -24,340 -23,712 -11,984 -62,311
Disposals 0
At 31 March 2010 -6,826 -193,925 -227,985 -85,833 0 -514,569
Net book value
At 31 March 2010 50,056 86,401 58,091 28,574 0 223,122
At 31 March 2009 52,331 110,741 25,646 36,437 0 225,155
Cost
At 31 March 2008 56,882 280,326 204,540 96,970 29,900 668,618
Additions 25,379 13,317 38,696
Disposals -29,900 -29,900
At 31 March 2009 56,882 280,326 229,919 110,287 0 677,414
Depreciation
At 31 March 2008 -2,275 -140,531 -195,121 -56,019 -18,438 -412,384
Charged in the year -2,276 -29,054 -9,152 -17,831 -5,480 -63,793
Disposals 23,918 23,918
At 31 March 2009 -4,551 -169,585 -204,273 -73,850 0 -452,259
Net book value
At 31 March 2009 52,331 110,741 25,646 36,437 0 225,155
At 31 March 2008 54,607 139,795 9,419 40,951 11,462 256,234

10 Financial Instruments

As the cash requirements of the Park Authority are met through the spending review process,
financial instruments play a more limited role in creating and managing risk than in a
Non public sector body. The majority of financial instruments relate to contracts to buy
Non-financial items in line with the Park Authorities expected purchase and usage requirements
and the Park Authority is therefore exposed to little credit, liquidity or market risk.

NOTE: This section contains a table of information
which cannot be converted to text.  Please see the 
original PDF for reference. 

Notes to the Accounts
for the year ended 31 March 2010 (continued)
11 Trade Receivables and other current assets 2010 2009
£ £
Amounts falling due within one year:
Project income debtors 339,741 229,326
Prepayments and accrued income 30,296 41,514
Total due within one year 370,037 270,840
Included within Trade Receivables are the following inter-government balances:
European Government Funders 315,813 201,880
Local Authorities 0 2,350
Local Enterprise Companies 1,923 19,107
Other NDPB's 16,439 5,989
334,175 229,326
12 Cash at bank and in hand 2010 2009
£ £
Bank accounts 38,445 213,035
Cash imprest accounts 196 250
38,641 213,285
13 Trade payables and other current liabilities 2010 2009
£ £
Amounts falling due within one year:
Trade payables 163,992 104,917
Project income received in advance 116,557 190,799
Accruals and deferred income 100,526 105,836
Total due within one year 381,074 401,552
Included within Trade Payables are the following inter-government balances:
Central Government Bodies 10,000 651
European Government Funders 70,000 140,000
Local Authorities 4,400 0
Local Enterprise Companies 2,003 2,003
Other NDPB's 44,554 52,843
130,957 195,497

Notes to the Accounts
for the year ended 31 March 2010 (continued)
14 Reserves 2010 2009
£ £
General Reserve
Opening balance 307,727 310,098
Net Expenditure after cost of capital and interest -4,874,367 -4,561,582
Grant in aid received 4,805,000 4,546,000
Add back Notional Costs 12,365 13,211
Recognised Net Expenditure for the year -57,002 -2,371
250,726 307,727

15 Pensions

The Park Authority is a member of the Principal Civil Service Pension Scheme (PCSPS) which is an
un-funded multi-employer defined benefit scheme. The Park Authority is unable to identify its share of
the underlying assets and liabilities of the scheme. A full actuarial valuation was carried out as at 31
March 2007 details of which can be found in the Resource Accounts of the Cabinet Office: Civil
Superannuation (www.civilservice-pensions.gov.uk).

For 2009/10 employer's contributions of £347,205 (2008/09 £345,253) were payable to the PCSPS. The
contributions were payable at one of four rates ranging from 17.1% to 25.5% of pensionable pay, based
on salary bands.

All employees have the opportunity to join the scheme. In addition, the Park Authority paid employer
pension contributions of £5,907 (2008/09 £7,829) to other pension providers and we were also invoiced for
employer pension contributions of seconded staff working for the Park Authority.
16 Capital commitments 2010 2009
£ £

Contracted capital commitments at 31 March 2010 not otherwise
included in these financial statements
Property, plant and equipment 24,000 0
34
Notes to the Accounts
for the year ended 31 March 2010 (continued)
17 Commitments under leases
Total future minimum lease payments under operating leases are given in the table below for each of the
following periods.
Motor vehicles &
Land & buildings office equipment
2010 2009 2010 2009
£ £ £ £
Obligations under operating leases
comprise:
Not later than one year 61,745 61,745 17,858 19,201
Later than one year & less than five years 134,217 170,071 20,595 17,625
Later than five years 0 0 0 0
195,962 231,816 38,453 36,826

There were no commitments under finance leases at the balance sheet date.

18 Contingent liabilities

There were no contingent liabilities existing at the balance sheet date.

19 Related party transactions

The Park Authority is a Non-Departmental Public Body of the Scottish Government. The Park
Authority's Sponsoring Body is the Scottish Government Rural Directorate which is regarded as a
related party with which there have been various material transactions during the year in the normal
course of business. In addition the Park Authority has had a number of material transactions with other
Government Departments and other Non-Departmental Public Bodies.
None of the Board Members, Management Team, or other related parties has undertaken any
material transactions with the CNPA during the year. Material transactions cover payments made under
contract for goods or services.

20 Losses and Special Payments

There were no losses or special payments in the year to 31 March 2010, nor in the year to 31 March 2009

NOTE: This section contains a table of information
which cannot be converted to text.  Please see the 
original PDF for reference. 

Appendix 1
MembersÕ attendance at meetings
Board Member Planning Committee Board Meetings
Total meetings 25 Total meetings 6
Attended: %* Attended: %*
Peter Argyle 19 76 5 83
Eric Baird (Deputy Convener) 23 92 6 100
Stuart Black 22 88 6 100
Geva Blackett 16 64 5 83
Duncan Bryden 24 96 6 100
Jaci Douglas 20 80 3 50
Dave Fallows 22 88 6 100
Lucy Grant 22 88 6 100
David Green (Convener) 20 80 6 100
Drew Hendry 17 68 5 83
Marcus Humphrey 19 76 4 67
Bob Kinnaird 17 68 6 100
Eleanor Mackintosh 25 100 6 100
Ian Mackintosh 18 72 5 83
Anne Maclean 23 92 6 100
Alastair MacLennan 23 92 6 100
Mary McCafferty 23 92 5 83
Willie McKenna 25 100 6 100
Fiona Murdoch 17 68 5 83
Andrew Rafferty 16 64 5 83
Grigor Rimell 18 72 5 83
Richard Stroud 22 88 5 83
Susan Walker 21 84 5 83
* This shows the percentage of meetings that the members attended out of the possible number during
their tenure.