Annual Statement of Accounts Year Ended 31 March 2019 Subject to Audit
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Annual Statement of Accounts Year ended 31 March 2019 Subject to Audit Annual Statement of Accounts 2018/19 Contents Page Introductory and Governance Statements Narrative Report by the Treasurer 3 Statement of Responsibilities for the Annual Statement of Accounts 33 Greater Manchester Combined Authority Single Entity Core Financial Statements Comprehensive Income and Expenditure Statement 36 Movement in Reserves Statement 37 Balance Sheet 38 Cash Flow Statement 39 Notes to the Core Single Entity Financial Statements 41 Supplementary Statements Police Pension Fund Account 120 Fire Pension Fund Account 122 The Mayoral Police Fund 123 The Mayoral General Fund 127 Greater Manchester Combined Authority Group Accounts Introduction to the Group Accounts 130 Group Comprehensive Income and Expenditure Statement 135 Group Movement in Reserves Statement 136 Group Balance Sheet 137 Group Cash Flow Statement 138 Notes to the Group Financial Statements including Group 140 GlossaryAccounting of Policies Financial Terms 181 2 Greater Manchester Combined Authority Statement of Accounts 2018/19 Narrative Report by the Authority Treasurer Welcome to the Greater Manchester Combined Authority’s (the Authority) Annual Statement of Accounts for 2018/19. The statements have been prepared in accordance with the requirements of the Accounting Code of Practice issued by the Chartered Institute of Public Finance and Accountancy (CIPFA). This narrative report aims to provide information so that members of the public, Council Members, partners, stakeholders and other interested parties are able to have: A full and understandable explanation of the overarching financial position of the Authority and the outturn for 2018/19; Confidence that the public money with which the Authority has been entrusted has been used and accounted for in an appropriate manner; Assurance that the financial position of the Authority is sound and secure. This narrative report provides information about the Authority, including the key issues affecting the Authority and its accounts. It also provides a summary of the financial position at 31 March 2019 and is structured as below: How the Authority Performed in 2018/19 Devolution and Impact in 2018/19 The Authority’s Group of Companies Revenue Budget and Outturn 2018/19 Capital Programme and Financing 2018/19 Treasury Management Performance in 2018/19 Forward Look – Financial Landscape Core Financial Statements How the Authority Performed in 2018/19 Greater Manchester is one of the UK’s most successful city regions and wants to become one of the best in the world. The Authority is made up of the ten Greater Manchester Council Leaders and the Mayor who work with other local services, businesses, communities and other partners to improve the city-region. 3 Greater Manchester Combined Authority Statement of Accounts 2018/19 The ten Greater Manchester councils (Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan) have worked together voluntarily for many years on issues that affect everyone in the region, like transport, regeneration, and attracting investment. Greater Manchester elected its first Mayor, Andy Burnham, in 2017 and together a blueprint for the future of the city-region was created – Our People Our Place, the Greater Manchester Strategy (the GM Strategy). The GM Strategy was approved by the Local Enterprise Partnership and the GM Centre for Voluntary Organisation as well as the Authority and its partners. In this way, it brings together the public, private and voluntary and community sectors in delivering a bold new vision to make Greater Manchester one of the best places in the world to grow up, get on and grow old. The GM Strategy sets a comprehensive plan to create a more productive and inclusive city region and addresses education and skills, health, wellbeing, environment, work and economic growth simultaneously to make a real difference to the lives of those living and working in GM. It is focused on the two themes of people and place and is structured around 10 priorities based on a ‘life journey’ approach. In April 2018, the Authority agreed a two year Implementation Plan for the GM Strategy with the inclusion of ambitions to be achieved by 2020 and delivery milestones for the first six months, with subsequent milestones being agreed on a rolling six monthly basis. Alongside the Implementation Plan, the GM Strategy Performance Dashboard has been developed to track progress against key outcomes and indicators. Good progress has been made across the whole range of priorities (with further detail provided below) demonstrating the benefits of collaboration and how devolution is continuing to make a real difference to the lives of the people of Greater Manchester, though there remains further challenges and opportunities going forward. Development of the Greater Manchester Local Industrial Strategy Greater Manchester is one of three trailblazer areas working with HM Government (HMG) to develop a Local Industrial Strategy. Development has been based on the 2017 Autumn Budget agreement between the Authority and HMG that set out that we would work together to develop a GM Local Industrial Strategy that reflected the main themes of the national Industrial Strategy, but also took a place-based approach that builds on Greater Manchester’s unique strengths and opportunities and ensures everyone can contribute to and benefit from enhanced productivity, earnings and economic growth, thus reflecting and complementing the overarching vision within the GM Strategy. During 2018/19 work to develop the GM Local Industrial Strategy concentrated on describing how we will implement and align key actions and identify where further devolution and strengthened partnership working between Greater Manchester and HMG will deliver improved outcomes across the city region. The GM Local Industrial Strategy will also set out priority actions for taking forward the ‘Five Foundations of Productivity’ and the ‘Grand Challenges’ facing the UK economy (‘Ageing Society’, ‘Clean Growth’, ‘Data and Artificial Intelligence’ and ‘Future of Mobility’). To develop the GM Local Industrial Strategy, Greater Manchester has followed a three strand process: developing a robust and independently verified evidence base; a broad public consultation; and joint policy development work with districts and HMG departments. 4 Greater Manchester Combined Authority Statement of Accounts 2018/19 Growing the Economy Over the past year, the Authority and its partners worked to be ever more connected, productive, innovative and creative, known for the excellent quality of life enjoyed by residents who are able to contribute to and benefit from the prosperity that economic growth brings. Inclusivity and opportunities for all being at the heart of Greater Manchester’s strategic approach helped drive up productivity and economic growth across the region. The GM Investment Strategy continued to support regeneration and job creation in the Greater Manchester area through targeted investment that reflects the strengths and opportunities in the local economy. In March 2019, the GM Investment Strategy for business funding was refreshed to take a sectoral approach, focusing on the growth sectors identified in the draft GM Local Industrial Strategy. The GM Investment Fund is focused on our strategic priorities in business, housing and commercial property. The GM Investment Strategy was based on sustainably generating returns that can be recycled and reinvested – as existing loans are repaid they can be reinvested in new projects. The fund brought together a range of development funds with the clear objective to safeguard or create jobs. As at the end of 2018/19, the GM Investment team held over £635m of funds (not including recycled monies) under direct and indirect management. Projects to the value of £772m have been approved to date across all funds. The GM Investment Strategy also provided a platform for working in partnership with the private sector and has secured over £1.1 billion of private sector funding. As part of this overarching programme, the business funds offered investments at commercial rates to businesses and organisations to fund schemes that boost local employment, improve people's skills and contribute to the region's economic growth. These funds have invested over £131m into more than 160 companies across Greater Manchester who are contracted to create and safeguard over 7,500 jobs. The Regional Growth Fund Programmes finished in March 2018, significantly exceeding the jobs and private leverage targets. The GM Investment Strategy also strengthened the drive to see Greater Manchester at the leading edge of science and technology. The £30m Life Sciences Fund was established in 2016 in partnership with Cheshire East Council and Bruntwood to further develop the Alderley Park site and support life sciences businesses across the city region. As at 31st March 2019 the Fund had committed £16m into 26 businesses and has created 157 jobs from those investments. The overall target for the Fund is to create/safeguard 370 jobs over 15 years and the investments to date show good progress against this target. Commercial property funds have supported the development of 337,437m2 of commercial floor space and the redevelopment of over 22 hectares of Brownfield land. Developments in the year are expected to unlock over 58,000m2 of industrial space. The Greater Manchester Housing Fund aims to unlock the delivery