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Statement of Accounts 2014/15

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Statement of Accounts 2014/15 Middlesbrough Council Statement of Accounts 2018/19 One Centre Square Contents 1. 2. 3. 4. 5. 6. 7. NARRATIVE ANNUAL CORE NOTES TO COLLECTION TEESSIDE GLOSSARY REPORT AND GOVERNANCE FINANCIAL THE FUND PENSION OF TERMS WRITTEN STATEMENT STATEMENTS ACCOUNTS FUND STATEMENTS Narrative Movement in Detailed Income and Pension Report Reserves Notes to the Expenditure Fund Statement Accounts Account Statement of Accounts Independent Comprehensive Notes to the Notes to Auditors report Income and Collection the – Expenditure Fund Pension Middlesbrough Statement Fund Council Independent Balance Sheet Auditors report – Teesside Pension Fund Statement of Cash Flow Responsibilities Statement Middlesbrough Council Statement of Expenditure Responsibilities and Funding – Teesside Statement Pension Fund Page 02 Page 27 Page 49 Page 56 Page 115 Page 119 Page 154 The Statement of Accounts for Middlesbrough Council provides an overview of the Council’s financial position at 31 March 2019 and a summary of its income and expenditure during the 2018/2019 financial year. The accounts are, in parts, technical and complex as they have been prepared to comply with the requirements of the Chartered Institute of Public Finance and Accountancy (CIPFA) as prescribed by the Code of Practice on Local Authority Accounting in the United Kingdom, and International Financial Reporting Standards. The accounts are available on the Council’s website: www.middlesbrough.gov.uk under Statement of Accounts. The Council’s Corporate Affairs and Audit Committee will consider the Accounts for approval on 25 July 2019. The Independent Auditor’s Report to the Members of Middlesbrough Council will confirm whether the accounts provide a true and fair view of the Council’s financial position at that time and any issues or amendments made as part of the audit. Middlesbrough Council Statement of Accounts 2018-19 Page | 1 1. Narrative Report Albert Park Lake Middlesbrough Council Statement of Accounts 2018-19 Page | 2 Narrative Report Review of the Year Middlesbrough Council is a large and diverse public sector organisation. The aim of this Narrative Report is to provide both guidance and context to the accounts, presenting a summary of the Council’s financial position, financial performance, and non-financial activities for the year, its prospects for future years and briefly explaining the key accounting statements. A separate summary of accounts document is also available this financial year to ensure that the information in the Statement of Accounts is as accessible as possible, which is available via the Council’s website (www.middlesbrough.gov.uk). Background to the Council Middlesbrough Council came into existence following the abolition of Cleveland County Council in 1996. It is a unitary local authority providing a range of services to the people of Middlesbrough. The Council works with local residents, businesses, public sector partners and the voluntary and community sector to improve local social, economic and environmental wellbeing for all and to secure the long-term sustainability of the town. It is one of the largest employers in the Tees Valley area, providing work for more than 3,500 people. Population and Related Economic Statistics COMPOSITION OF MIDDLESBROUGH POPULATION (140,639) Aged 65 & Over, 0 - 15 Years, 29,130, 22,565, 16% 21% 16 - 64 Years, 88,944, 63% Source: Office of National Statistics Mid-Year Estimates 2017 The composition of the local population drives the focus of the services provided by the Council most notably through increasing demand for Children’s and Adult Social Care. Middlesbrough Council Statement of Accounts 2018-19 Page | 3 Economic data from Nomis Official Labour Market Statistics for the period January 2018– December 2018 shows the following: Middlesbrough North Great East Britain Gross Weekly Pay (Median) £480.30 £511.60 £571.10 Unemployment rate (16 – 64) (as 7.4% 5.3% 4.2% proportion of economically active) The Council’s various strategies are set around meeting the needs of its citizens driven by the demographic profile of the town. Political Structure in 2018/19 The Council operated a Mayoral style of local government during the financial year led by the Mayor, Dave Budd, and supported by a small team of Executive Members. The Executive is the Council's principal decision making body, considering significant issues in connection with, for example, community safety, leisure, education, social services, highways and the environment as well as making recommendations to Council on the annual revenue budget and investment strategy. The Council had a labour led administration during 2018/19. Meetings of the Executive took place every four weeks chaired by the Mayor with each member of the Executive having designated responsibilities (known as portfolios). Middlesbrough Council consists of 20 wards with between one and three Councillors representing each ward. All councillors serve a maximum four-year term. The political make-up of the Council at 31 March 2019 was Elected Members 47 Mayor David Budd (Labour) 1 Conservative 5 A Independent 5 new Labour 31 set of Middlesbrough Independent Councillors' Association 5 local elections were held on 2nd May 2019. This has changed the political balance and composition of the Council significantly with a new Independent Mayor of Middlesbrough elected plus initially no overall political control for any one Group. This is the first time since creation in 1996 that the Labour Party has not held control at Middlesbrough Council. At the time of publishing the Statement of Accounts, the Council is in the process of working with the new Mayor on their new political priorities. A new strategic plan will be presented to Executive for consideration shortly. This set of accounts for 2018/19 however relates to the final year of the previous administration, its policies, strategies and outcomes. Middlesbrough Council Statement of Accounts 2018-19 Page | 4 Management Structure Leadership Team The existing Leadership Team structure for the Council is set out below: Chief Executive Strategic Director of Director of Adult Director of Public Executive Director Finance, Governance Executive Director of Social Care and Health Health and Public Growth & Place and Support (S151 Children's Services Integration Protection Officer) Director of Culture, Director of Children's Communities and Care Communications Director of Environment and Director of Education Commercial Services Director of Director of Prevention Regeneration and Partnerships Director of Business, Performance and Change The Mayor’s Vision for Middlesbrough Dave Budd was Middlesbrough Mayor from 2015-2019, including the period covered by these financial statements. This section refers to the Mayoral vision and priorities during the 2018/19 financial year. These set the direction for the Council’s Strategic Plan and its role as community leader. In the past year, the Council’s approach to delivering the Mayor’s Vision has crystallised around three strategic themes: Business Imperatives – Ensuring that the Council operates efficiently and effectively so that Physical and Social Regeneration outcomes are maximised. Physical Regeneration – Investing in Middlesbrough to provide and improve facilities, which act to increase the town’s reputation, create social opportunity and improve the Council’s finances. Social Regeneration – Working with our communities and other public service organisations to improve the lives of Middlesbrough’s residents. Middlesbrough Council Statement of Accounts 2018-19 Page | 5 Strategic Plan On 28 March 2018, the Council approved the Strategic Plan for the period 2018 to 2021. This Plan is the Council’s overarching business framework, outlining its contribution to the Mayor’s Vision for Middlesbrough and providing a broad overview of high-level improvement activity in the medium term, within the financial parameters outlined in its Medium Term Financial Plan. The Plan is central to the Council’s corporate governance framework and is updated annually. It is also the basis of the Council’s performance management framework, with progress reviewed on a quarterly basis and reported to Executive and Overview and Scrutiny Board. This latest iteration of the Strategic Plan is designed to: Set out clearly how the Council contributes to the Mayor’s Vision and is organised around the three aims referred to previously. Celebrate successes and ‘sell’ the Council’s plans for the future. Be more useful in communicating the above to staff, partners, residents and businesses. Inform a more streamlined approach to strategic performance management from 2018/19. The Plan sets out the Council’s priorities for the next four years including the following: Business Imperatives Improve the financial performance of services we charge for and look for new income through our commercial strategy. Achieve greater value for money when buying services and managing contracts. Look at new ways of delivering services with local communities and a range of partners. Make it easier to access our services on line and by phone through our digital strategy. Introduce a ‘unit cost’ budgeting approach to our services to try and identify further efficiency savings. Physical Regeneration Develop Middlehaven as an education, leisure, sports and entertainment centre of national significance. Improve Middlesbrough’s rail connections, promote investment in the Historic Quarter to encourage business growth and continue to improve our road network. Build 2,300
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