Statement of Accounts 2013/14 An Overview Presentation to: Audit - - PDF document

Statement of Accounts 2013/14 An Overview

Presentation to: Audit & Financial Monitoring Overview and Scrutiny Panel

• n 16 July 2014
• St. Helens Council

Statutory Framework

• Governed by Regulations & Proper Practices (Code)
• Based on International Financial Reporting Standards

(IFRS)

• Statutory Framework determines:
• Preparation & Format
• Disclosure Requirements, e.g Senior officer remuneration
• Signing & Approval
• Publication
• Audit & Inspection

Purpose & Importance

• Provides clear information about the Council’s

finances to all stakeholders

– What did services cost in year ? – Where did the money come from ? – What were Council’s assets & liabilities ? – How did the financial position change in the year and what are the future prospects? – What are the risks and uncertainties facing the Council?

Main Changes & Considerations for 2013/14

• Pensions
• Revised standard, incorporating new disclosure requirements.
• Local Council Tax Support Scheme
• Business Rate Retention Scheme
• Group Accounting – former Parkside site
• Local Authority Mortgage Scheme

COMPREHENSIVE INCOME and EXPENDITURE STATEMENT (page47 )

£178m Employees £73m Benefits

COST OF SERVICES £141.9m EXPENDITURE £418.5m INCOME £276.6m OTHER OPERATING COSTS £36.5m TAXATION & NON SPECIFIC GRANTS £171.2m

DEFICIT ON PROVISION OF SERVICES £7.2m.

£223m Specific Grants

• Incl. £73m Benefits

£115m DSG £12m Public Health £7m Pupil Premium Including: £24.7m Levies £3.8m Treasury (Interest payable & receivable) £10.8m Pensions (Interest on assets & liabilities) £2.3m Gains on Disposal & value of AHFS £78.0m RSG & Business Rates Top-up £11.5m Capital Grants £54.6m Council Tax £23.5m Retained Business Rates £3.6m Other Grants

Accounting cost vs. Taxation funded cost

MOVEMENT IN RESERVES STATEMENT (page 46)

General Fund Balances

£1.5m+

Cap Redist Grant & SBRR £1.0m+ Treasury & Portfolio Savings £8.4m+ LAC budget pressures £2.9m- Redbank £1.1m- Insurance £1.3m- Other £0.5m- Increase in Balances(excl schools) £3.6m+ Transfer to Earmarked Bals £2.1m-

Schools Balances Earmarked Reserves

£2.1m+

Insurance Fund £1.3m- Modernisation £2.1m+ Development £0.5m- Employment Initiatives £0.6m- Welfare Assistance £0.4m+

• Cllr. Improvement Fund £0.4m+

Essential Equipment £1.5m+ Commuted Sums £0.1m+

£1.6m-

Capital Receipts Reserve

£11.6m-

Asset Sales & Right to Buy £1.6m+ Financing of Capital Investment £13.2m-

Capital Grants Unapplied

£1.0m+

Unusable Reserves

£97.7m+

TOTAL MOVEMENT: £89.1m-

Pensions Reserve £75.6m+ Capital Adjustment Account £12.9m+ Revaluation Reserve £8.6m+ Other £0.6m+ New Grants in Year £4.2m+ Applied in Year (spent) £3.2m-

BALANCE SHEET (page 48)

ASSETS £653.6m LIABILITIES £405.5m- NET ASSETS £248.1m

PROPERTY, PLANT & EQUIPMENT £436.1m INVESTMENT PROPERTY £25.7m

NON CURRENT ASSETS £475.5m

ASSETS HELD FOR SALE £8.1m INTANGIBLE ASSETS £2.1m

INVESTMENTS £109.7m DEBTORS £32.9m INVENTORIES £0.6m CASH & EQUIVALENTS £34.9m BORROWING £74.4m- CREDITORS £35.3m- PENSIONS LIABILITY £194.6m- PROVISIONS £9.3m- GRANTS IN ADVANCE £10.8m- OTHER L.T. LIABILITIES £81.1m- USABLE RESERVES £119.2m UNUSABLE RESERVES £128.9m

MRWA INVESTMENTS £51.1m- MRB DEBT £3.3m- COMMUTED SUMS /BONDS £0.5m- HERITAGE ASSETS £3.5m RAINFORD PFI £26.2m- INSURANCE £6.1m- TERMINATION COSTS £1.1m- BUSINESS RATE APPEALS £1.5m- OTHER £0.6m-

USABLE RESERVES

GENERAL FUND BALANCES £21.3m CAPITAL RECEIPTS RESERVE £32.2m EARMARKED RESERVES & SCHOOLS BALANCES £57.3m Working Balances (prudent level) £8.0m Schools £1.0m NW Regional Leaders Board £4.4m Insurance Fund £0.9m Commuted Sums/Bonds £1.2m Pension Liability (NW RLB) £2.6m Committed 2014-17 £39.2m Available £3.9m Fund Capital Programme £28.3m Available

£119.2m

CAPITAL GRANTS UNAPPLIED £8.4m To Fund Capital Programme

CASHFLOW STATEMENT (Page 49)

£443.4m+ CASH INFLOWS £424.5m- CASH OUTFLOWS £19.5m- Purchase of Non-current Assets £5.6m- Investments £15.3m+ Grants & Capital Receipts. £3.0m- Other

NET INCREASE IN CASH =

£5.5m

OPERATING ACTIVITIES INFLOW INVESTING ACTIVITIES FINANCING ACTIVITIES INFLOW

£18.9m+ £12.8m- £0.6m-

£0.7m- Repaid PFI / MRB liabilities £0.1m+ Agency Taxation.

COLLECTION FUND (Page105)

INCOME FROM BUSINESS RATEPAYERS £52.3m INCOME FROM COUNCIL TAX £65.9m £3.1m Provision for appeals £24.3m to Government / Fire £1.0m Movement in Bad Debts £0.2m Retained for Admin. £23.3m to St.Helens Council £54.2m to St.Helens Council £7.1m to Police £3.2m to Fire £0.4m- previous year deficit £1.0m Movement in Bad Debts

£0.6m SURPLUS carried forward

(£0.5m DEFICIT brought forward)

In-year Movement £0.3m In-year Movement £0.8m