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Statement of Accounts 2018/19

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Statement of Accounts 2018/19 CONTENTS Introductory Statements Foreword by Cllr David Molyneux, Leader of Wigan Council 1 - 2 Narrative Report by the Director of Resources & Contracts (Deputy Chief 3 - 21 Executive) Core Financial Statements Movement in Rese rves Statement 22 Comprehensive Income & Expenditure Statement 23 Balance Sheet 24 Cash Flow Statement 25 The Notes to the Core Financial Statements 26 - 112 Other Financial Statements Housing Revenue Account 113 - 11 7 The Coll ection Fund Statement 11 8 - 120 Governance and Audit Statement of Responsibilities 121 Independent Auditor ’s Report to Members of Wigan Council 12 2 - 125 Additional Information Glossary and Terms of Reference 126 - 135 FOREWORD by Cllr David Molyneux, Leader of Wigan Council 2018/19 was my first full year as Leader of Wigan Council. It has been an exciting and challenging year with many highlights such as; the Lionel Richie concert in Leigh, Armed Forces Day, In Bloom, Wigan Pride, the launch of the apprenticeship scheme, Diggers Festival, Believe in Leigh, free weekend car parking, the opening of the Armed Forces Hub, the refurbishment of Atherton Town Hall, Environmental awards, the new Wigan bus station, Autism award and the continued freeze on Council Tax. The year also saw the retirement of our former Chief Executive Donna Hall and the appointment of Alison McKenzie Folan as our new Chief Executive. The cumulation of all the good work that the Council and the Wigan Deal has been undertaking for the last few years has been recognised nationally as the Council was awarded Council of the Year at the Local Government Chronicle Awards 2019. This was an extremely proud moment for everyone who has contributed to the Deal including residents, staff and elected Members. Wigan Council is the second largest in Greater Manchester with a population of over c324,000. The area it covers is still two thirds countryside with its “greenheart” covering some 77 square miles, including stunning parks, woodlands, wetlands and green spaces. This combined with its rich sporting heritage makes Wigan an excellent place to live and to locate your business. The Government’s austerity programme is into its 9 th year and as a result, we have had to cut c£141m from our budget with further potential cuts in the future following the review of Local Government Funding planned for introduction in 2020/21. In response to the cuts the Council has transformed its services whilst striving to improve the offer to the residents of the Borough. With this in mind, it has been out to consultation with over 6,000 individuals and has developed a new refreshed corporate strategy: The Deal 2030. The key themes being: Our People Together we feel happy, safe, included and look out for each other • Best start in life for children and young people • Happy healthy people • Communities that care for each other Our Place Together we are proud of our towns and look after our environment • Vibrant town centres for all • An environment to be proud of • Embracing Culture, Sport and Heritage Our Future Together we will build a future where everyone has the opportunity to thrive • Economic growth that benefits everyone • A well connected place • Confidently digital • A home for all We have continued with our promise to keep council tax rises as low as possible and have not raised general council tax for 2019/20. The rise that you see on your bill is for the Police and the Greater Manchester Mayoral precept. Details of this can be found on the Greater Manchester Combined Authority website. Wigan now has the lowest Council Tax in Greater Manchester. 1 2018/19 has been a challenging year with increasing demand on children’s social care as the number of complex cases continue to add spending pressure on our services. In addition, changes to the waste recycling market have resulted in an overspend in that area. Measures are currently being reviewed to address this issue. However, we have maintained a balanced Adult Social Care budget which is entirely due to the great work done to reduce the demand for residential care by improving the offer to our residents. The overall position means that we have delivered our savings target of £12m and have exceeded this by some £0.303m. This small surplus continues the trend from previous years and helps maintain balances at a prudent level. The following accounts will show that there continues to be strong financial management and that the Council is providing value for money for its residents. Councillor David Molyneux Leader of Wigan Council 2 NARRATIVE REPORT by the Director Resources and Contracts (Deputy Chief Executive) Introduction The Statement of Accounts is produced annually to give electors, local taxpayers, Members of the Council, employees and other interested parties clear information about the Council’s finances. The accounts must be completed by law and in accordance with the requirements of the Code of Practice on Local Authority Accounting based on International Financial Reporting Standards (IFRS) for 2018/19, Accounting Codes of Practice published by the Chartered Institute of Public Finance and Accountancy (CIPFA) and any other government legislation or regulations. The overriding requirement of the Code of Practice is that the Statement of Accounts ‘presents a true and fair view’ of the financial position and transactions of the Council. The main financial statements follow this report. The accounts are highly technical and inevitably include some technical language. Wherever possible this has been avoided in an attempt to provide the reader with an easily understandable guide to the most significant matters reported in the accounts. Together with this narrative report, a glossary is provided at the back of the publication to explain some of the technical terms to assist in the interpretation of the financial statements. This narrative report aims to provide an explanation of the Council’s financial position for the financial year ending 31 March 2019, together with additional information about the Council in general. I also take this opportunity to look to the future and explain the risks and pressures that the Council faces and the plans that have been developed to place the Council in the best possible position to meet those risks. 3 Wigan Borough 4 5 Who We Are Wigan Council was created in 1974 as part of a major reorganisation of Local Government. Wigan is the second largest borough in Greater Manchester and occupies an enviable position between Liverpool and Manchester. The area it covers is still c70% countryside with its “Greenheart” covering some 77 square miles. The Borough is split into 25 wards each with 3 elected Councillors. Local Councillors are elected by the community to decide how the Council should carry out its various activities. They represent public interest as well as individuals living within the ward in which he or she has been elected to serve a term of office. They have regular contact with the general public through council meetings, telephone calls or surgeries. Surgeries provide an opportunity for any ward resident to go and talk to their Councillor face to face and these take place on a regular basis. The political structure of the Council for 2018/19 was as follows: Labour 60 Conservative 7 Independent 5 Independent 3 non group The Cabinet, also known as the Executive, is the main policy making body of the Council and carries out Council functions that are not the responsibility of any other part of the Council, whether by law or under the constitution. It consists of an Executive Leader together with at least 2, but no more than 9, Councillors appointed by the Executive Leader. At Wigan, the Cabinet (Executive) consists of 8 senior Councillors who are each ‘Portfolio Holders’ for a major area of responsibility. 6 The Deal 2030 our Corporate Strategy The Deal 2030 has recently replaced the Deal for the Future 2020. It has been developed following the findings of the Big Listening Project: The Big Listening Project ensured that all of our residents were given the opportunity to tell us their aspirations for the future. We asked two simple questions; • What should the borough look and feel like in 2030? • How can we work together to achieve this? In total, The Big Listening Project reached the views of almost 6,000 people, visited 83 locations and events and listened to 2,650 residents who sat on our green sofa, 500 residents had their say in the Video Booth and 666 people completed an online survey. Over 2,000 staff gave their ideas at Listening in Action staff sessions and our social media promotions managed to reach 252,170 people. We were inspired by the pride, passion and creativity that we encountered on this journey and we have been able to capture some truly brilliant ideas of how we can work together to make this borough an even better place. Throughout our discussions with residents, stakeholders, staff and Members, there were certain themes that came through loud and clear. We have identified 10 strategic goals for our borough. We have grouped these together as priorities for our people, our place and those which will shape our future. 7 These themes form the basis for our Deal 2030 Corporate Strategy. The Deal 2030 is our ambitious plan for Wigan Borough – this plan has been developed by everyone; residents, community organisations, businesses and public sector bodies The Deal 2030 sets out how we will work together to create a truly world class place to live in the decade ahead. The Council cannot realise the potential of our borough alone – to do this we have to be working effectively with our partners.
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