Summarises the actual revenue and capital Final Accounts position for 2009/10

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.

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.

The alternatives are included above.