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Decision details
Final Accounts 2009/10 and Summary Statement of Accounts
Decision Maker: Cabinet.
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Purpose:
Summarises the actual revenue and capital Final Accounts position for 2009/10
Decision:
1. That the revenue final accounts position 2009/10 be noted as being substantially in line with that provisionally reported to the previous meeting.
2. That the uncommitted level of balances available as at 31March 2010 at £3.7m, an overall increase of approximately £0.7m compared to the position as agreed by Council in February 2010 be noted.
3. That the revised financing of capital expenditure as detailed in Appendix C of the report of the Head of Finance be agreed.
4. That the draft income and expenditure account, balance sheet, cashflow statements and Collection Fund accounts for 2009/10, as amended and attached, be noted.
5. That the final accounts position for 2009/10 is a strong base on which to monitor the agreed spending programme for 2010/11 and consideration of the budget strategy for 2011/12 onwards be agreed.
Reasons for the decision:
The
provisional outturn position, for revenue and capital spend,
overall balances and the impact of the final accounts position on
the projected balance sheet was reported to the last meeting of
Cabinet. The Accounts and Audit
Regulations require the full Statement of Accounts to be agreed by
Audit Committee by the end of June 2010 and the final accounts
position as detailed in this report is an essential element of the
Statement of Accounts.
The
full Statement of Accounts is to be reported to the Audit Committee
on 21 June 2010. These accounts will
include the Annual Governance Statement which was agreed by Cabinet
at the last meeting. At the meeting of
Council on 19 May 2010, a recommendation from Standards Committee
to enhance the role of Audit Committee was agreed. This included the approval of the annual Statement
of Accounts. At this meeting on 21 June
2010, Audit Committee will be asked to consider and approve the
statements for the first time.
Revenue
The
revenue final accounts for 2009/10 have now been completed and the
summarised position is set out in Appendix A to the report of the
Head of Finance. This is substantially
in line with the provisional figures reported to the last meeting
of Cabinet.
Appendix B to the report of the Head of Finance is the Statement
of Balances as reported to the last meeting of Cabinet. The statement has been amended to reflect the
value of carry forwards agreed at the last meeting of
Cabinet. Members will note that the
total level of balances at 31 March 2010 is £8.3m, with an
uncommitted level of balances of £3.7m, after taking into
account approved carry forwards of £4.6m and other future
commitments.
Capital
Appendix C to the report of the Head of Finance is a revised statement of capital expenditure for 2009/10. There have been minor changes to this statement and the capital financing since the report to Cabinet dated 20 May 2010. There is therefore a need to approve the revised capital financing as set out in the summary at the start of the appendix. This statement is a fuller version and expenditure varies from the previous report as follows:-
a) Capital expenditure on Renovation Grants has increased by £124,000 following a review of grant’s accrued;
b) Capital expenditure on Gypsy sites has been correctly identified as renovation grant and has been moved as part of the adjustment given in item a) above;
c) Capital
expenditure on the museum included incorrectly allocated marketing
cost which have been adjusted.
Statement of Accounts
The
full Statement of Accounts will be reported to the Audit Committee
on 21 June 2010, in accordance with the Terms of Reference for that
Committee as agreed by Council in December 2006. However, it is important the Cabinet are aware of
the major statements included within the overall Statement of
Accounts and these are detailed as follows and updated copies of
these appendices were circulated at the meeting and are attached to
this Decision:-
a) Income and
Expenditure Account – Appendix D
b) Balance
Sheet – Appendix E
c)
Cashflow Statement – Appendix F
d) Collection
Fund – Appendix G
The
Income and Expenditure Account attached at Appendix D is in the
format for the Statement of Accounts and presents the revenue
position as required under financial reporting
standards. This statement is formatted
to allow comparisons with other businesses required to report under
financial reporting standards and shows a year end deficit of
£5.3m. In order to calculate the
balance attributable to Council tax a series of adjustments to
figures such as depreciation and pension costs are
required. These adjustments are
detailed in the full statements which confirm the overall level of
balances at £8.3m as fully detailed in Appendix B to the
report of the Head of Finance.
Appendix E attached reports the Council’s assets and
liabilities. Members should note the
balance of usable capital receipts stands at £2m. Members should also note the pension fund
liability has been valued as at 31 March 2010 as £64.3m a 70%
increase in liability from 31 March 2009. This value has been calculated by the Actuaries to
Kent County Council’s pension fund and is based upon a set
formula that is not compatible with KCC’s actual investment
strategy.
The
cashflow statement at Appendix F (attached) identifies that, in
overall terms, the revenue activities of the council produced a
marginal increase in cash resources of approximately
£0.9m. On capital activities the
income from capital receipts and grants was approximately
£6.7m which is less than the capital expenditure funded from
these sources. This net outflow of cash
resulted in the reduction in investments held by the Authority of
£10m.
Appendix G (attached), relating to the Collection Fund, identifies that there is an overall reduction in the balance of the fund from £110,000 to £83,000 which is in line with projections in December 2009. As in previous years the position of the Collection Fund during 2010/11 will be reported to the Cabinet in the quarterly monitoring report.
Alternative options considered:
The alternatives are included above.
Wards Affected: (All Wards);
Details of the Committee: Previous reports to Cabinet relating to 2009/10 budgets, particularly in the report to Cabinet in May 2010. The Accountancy reports summarising revenue expenditure 2009/10. Statement of Accounts, which will be reported to Audit Committee on 21 June 2010.
Contact: Email: paulriley@maidstone.gov.uk.
Report author: Paul Riley
Publication date: 11/06/2010
Date of decision: 09/06/2010
Decided: 09/06/2010 - Cabinet.
Effective from: 19/06/2010
Accompanying Documents:
- income_expenditure_revisedAppD
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- balance_sheet_0910_revisedAppE
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- cashflow_0910_revisedAppF
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- collection_fund_0910_revisedAppG
PDF 35 KB
- Cabinet, Council or Committee Report for Final Accounts 2009/10 and Summary Statement of Accounts
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- Cabinet, Council or Committee Report for Final Accounts 200910 and Summary Statement of Accounts enc. 1
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