Statement of accounts 2008 - 2009
The Statement of Accounts comprises:
Statement of Accounting Policies
This is a listing of the accounting policies followed in the production of the Council’s accounts.
The Statement of Responsibilities for the Statement of Accounts
This sets out the Council’s and the Chief Finance Officer’s responsibilities for the statement of accounts. This statement also carries the certification of the Chief Finance Officer.
Income and Expenditure Account
This statement is fundamental to the understanding of a local authority’s activities. It summarises the costs for the year of all the functions for which the Council is responsible and demonstrates how the cost has been financed from general government grants and income from local taxpayers.
Statement of the Movement on the General Fund Balance
The Income and Expenditure Account discloses the income receivable and expenditure incurred in operating the Council for the year. However, there are other items that are required to be charged or credited to the General Fund that are not shown in the Income and Expenditure Account and they have to be taken into account in determining the Council’s budget requirement and its Council Tax demand. These other items are shown in the Statement of the Movement on the General Fund Balance. While the surplus or deficit on the Income and Expenditure Account is the best measure of the Council’s financial result for the year in accordance with generally accepted accounting practice, the movement on the General Fund Balance is also an important aspect of the Council’s stewardship.
Statement of Total Recognised Gains and Losses
Not all gains and losses experienced by a local authority are reflected in the Income and Expenditure Account, for example gains on revaluation of fixed assets and pension actuarial gains. This memorandum statement brings together all such gains and losses.
Balance Sheet
The Balance Sheet shows the financial position of the Council. It shows the balances and reserves at the Council’s disposal, its long term indebtedness and the fixed and net assets employed in its operations, together with summarised information on the assets held.
Cash Flow Statement
This statement brings together the total movements of the Council’s assets and liabilities during the financial year, inflows and outflows of cash arising from both revenue and capital transactions with third parties.
Notes to the Accounts
The various accounts and statements are supported by detailed notes to help the reader.
Housing Revenue Account (HRA) Income and Expenditure Account and the Statement of Movement on the HRA Balance
The Council is required by law to account separately for the provision of housing. This account shows the major elements of housing revenue expenditure: repairs and maintenance, administration and financing costs as well as how the expenditure is financed from rents, grants and other income. As with the Income and Expenditure Account this account is supported by a Statement of Movement on the HRA Balance.
Collection Fund
There is a statutory requirement for local authorities that issue Council Tax bills (billing authorities) to maintain a separate fund to show the transactions in respect of council tax and non-domestic rates and the way in which these have been distributed to precepting authorities.
The Annual Governance Statement
This statement explains how the Council has complied with the Code of Corporate Governance and also meets the requirements of the Accounts and Audit regulations for the publication of a statement on internal control. This is signed by the Managing Director and the Leader of the Council. This is not part of the accounts but is required to be shown alongside them.
Glossary
This provides a guide to some of the technical terms used in this document.
