North Wiltshire District Council in 2008/9 Our Communities How the Council Works

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Appendix 2

North Wiltshire District

Council

Annual Report and

Statement of Accounts For the year ending

31 st March 2009

Appendix 2

Summary of Contents

North Wiltshire District Council in 2008/9 Our Communities How the council works

Council Priorities for 2008/09

Explanatory Foreword to the Accounts

Statement of Accounting Policies

Statement of Responsibilities

Annual Governance Statement

Auditor’s Report

Core Financial Statements

Income & Expenditure Accounts

Statement on the movement on the General Fund Balance

Statement of Total Recognised Gains and Losses

Balance Sheet

Cash Flow Statement

Notes to the Core Financial Statements

Collection Fund Income and Expenditure Account

Notes to the Collection Fund

Glossary

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NORTH WILTSHIRE DISTRICT COUNCIL IN 2008/09

North Wiltshire covers 768 square kilometres and is one of four Districts in the County of Wiltshire. The four districts, including North Wiltshire, become part of Wiltshire Council on 31 st March 2009. The District is set between the Cotswold escarpment, the Marlborough Downs and the Upper Thames Valley, and has a rich heritage of contrasting rural landscape, historic towns and attractive villages. The Cotswolds and North Wessex Downs AONBs (Areas of Outstanding Natural Beauty) cover 25% of the District between them.

Officially classified as 81% rural, the pattern of settlements in North Wiltshire is unusual, having six medium sized market towns, surrounded by numerous villages and rural settlements. Each town centre and most villages have buildings and spaces protected under 64 separate Conservation Areas. The towns of Cricklade and Malmesbury are Areas of Special Archaeological Significance and the District has the third highest level of listed buildings in the country (more than 5,200).

Both the District Council and the County Council have conducted Economic Assessments to understand the impact of the Credit Crunch and the current economic climate on the area. A lot of employment is in small businesses and the public sector which reduces the vulnerability to job losses. The economic diversity of North Wiltshire should leave its businesses and economy to be less vulnerable to the downturn than other areas in the UK. The District Council have been assisting businesses in North Wiltshire with a series of measures including additional grant funding and credit crunch seminars. In January 2009 the unemployment rate for Wiltshire was 1.9% compared to 2.5% for the South West, and 3.4% for Great Britain.

Our Communities The 2001 census shows that the resident population of North Wiltshire was 125,372 and is now estimated at 132,300. Between 1991 and 2001, the population of the District increased by 10.9% (12,372 people) much higher than the national average increase of 2.6%. Approximately 60% of the population live in the six main towns. The largest, Chippenham, has a population of over 33,000.

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How the council works The Executive comprises of the Leader of Council and up to 9 other Councillors who are appointed by the Leader known as Lead Members. Each Lead Member is responsible for a portfolio of specific services and functions. The Executive takes the lead on developing policy and also for taking strategic decisions and setting policy in accordance with the Council's policy and budget framework.

Executive in 2008/09

Councillor Portfolio Richard Tonge - Leader Policy Allison Bucknell - Deputy Leader Resources & Democracy Chuck Berry Built Environment Ray Sanderson Car parking, Community & Safety Howard Greenman Housing Caroline Ramsey Customers & Partners Christine Crisp Waste & Sustainability Viv Vines Leisure & Economy

The executive members were all members of the Conservative political party.

The Chairman of the council in 2008/09 was Ian Henderson. The Chairman works closely with the Executive.

The staff of the council (known as officers) were led by our Chief Executive, Delwyn Burbidge up to 9 th January 2009 when he was replaced by Stuart McGregor, Head of Paid Service. The council had an average staffing level in the year of 361 Full Time Equivalents. Staff turnover in 2008/09 was 15.8%.

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Council Priorities for 2008/09

Following the Strategic Planning Working Group a clear vision for the future and three corporate priorities were agreed – all underpinned by the Council’s Mission:

The report clarifies the Council’s priorities for improvement and key actions for the last year of the Council’s existence.

The Corporate Plan was reviewed by the Executive in September 2007, in the light of the Government’s announcement that there would be one unitary Council covering Wiltshire in future. The outcome of this review was to propose a Transitional Corporate Plan, which amended some of the actions for the current year and changed the end date of the Corporate Plan to March 2009. The Transitional Corporate Plan was agreed by the Executive as the basis for budget consultation for 2008/09. A final version of the Transitional Corporate Plan for 2008/09 was considered at the Executive Budget meeting on 31 January 2008 and was approved at the budget meeting on 26 February 2008.

Improving North Wiltshire

Vision: Vibrant, diverse and healthy communities living in a clean and safe environment

Priorities:

1. Community : To promote vibrant, safe and inclusive communities 2. Environment: To protect and enhance the local environment 3. Customers: To put our customers at the heart of everything we do

Each priority was underpinned by a number of goals, indicating what the Council hopes to achieve in the final year of the Councils existence. One or more community focused actions were agreed against each goal, setting out measures by which the Council’s achievements can be judged. As part of their policy development work, members also agreed a number of non-priorities. The priorities and the non-priorities were used to guide the budget decisions for 2008/09.

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Council Priorities – Progress and achievements for 2008/09 relating to Council priorities and goals are given below:

1. Community: To promote vibrant, safe and inclusive communities • Housing - Maximise the opportunities for affordable, accessible and decent housing for all o 2007/08 saw the completion of 165 new homes and by end of 2008 138 homes had been completed. Over the two year period 326 homes are forecasted to be completed. 9% over target o In 2008 87 homes had been improved to a decent homes standard and 27 homes are undergoing works to bring them up to standard. A further 25 grant applications are being processed which are expected to be completed by April 2009. Total homes improved for vulnerable households is expected to be 139 - 26% above target. o Homelessness has been prevented in 56 cases in the first two quarters (61 cases were prevented during 2007/08). At the end of Q2 32 households were in temporary accommodation. The government target to reduce the use of temporary accommodation by 50% was achieved at the end of 2007/08, the councils target has also been achieved.

• Community Safety - Work with partner organisations to reduce crime and the fear of crime o Analysis has been completed using the WCC people’s voice survey. This shows that the perception of Anti-social behaviour has fallen and anti-social behaviour in hard to hit areas is also on the decrease.

• Economy - Support a diverse and thriving economy o Approximately £250,000 grants provided for community projects, which led to a further £100,000 (approximate) of matched funding. This was the position last year and a substantial amount of work has been completed since. o Calne Phelps Parade. Works commenced in Aug 08 for completion Oct 09 o Bath Road Redevelopment. Agents have been appointed to market the site. Bids expected for evaluation Mar 09.

• Transport – Support parking improvements in partnership with Wiltshire County Council o Two residents' parking schemes in Chippenham were consulted on and rejected due to insufficient support from the residents. Preliminary plans for on-street parking restrictions in Wootton Bassett have been approved by the Executive.

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• Culture/healthy lifestyles - Creating opportunities to encourage people of all ages to get involved in leisure activities o A wide variety of projects have been delivered by Sports Development. o Wiltshire Council have extended the Leisure Centre Management Contract with DC Leisure Management Ltd, on the existing terms to 2011, until a decision about the longer term management arrangements can be made by the new council. o During 2008/9 the council have continued to implement a programme of enhancements across the 4 leisure centres, totalling £1.2m in 2008/9. o The council is working with Calne, Cricklade and DCL to implement projects relating to Energy Efficiency in the sports centres, and has allocated grants of £30k per leisure centre.

2. Environment: To protect and enhance the local environment • Waste & Recycling - minimise waste and increase our recycling rates o Green waste collection areas have increased and are on plan to hit the target of 15% by March 2009 o A series of road shows entitled 'Are you doing enough' were held during June which identified the demand for plastics and cardboard.

• Climate change - take action to reduce the impact of climate change on our activities and to promote energy awareness to our customers

o For 2008/09 there is currently a £10,000 saving predicted on electricity use (which represents 12% savings).

o Further investment in voltage optimisation plant can bring savings across the building as a whole even before other energy savings are considered.

o Monkton Park savings of at least 10% are predicted by the installation of a voltage optimisation plant, which is currently on order.

o A study has been commissioned to evaluate electricity generation from the weir on the river Avon, initial report expected Feb 2009.

o 36 Energy Efficiency Audits conducted. 34 facilities will receive funding to implement recommendations.

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o The annual HECA report details the energy efficiency improvements that have been achieved. o Continue to work with insulation installers to provide free energy efficiency measures to those on means tested benefits and the over 70's.

• Controlled Development - protect our countryside and built environment through our planning activities o The Strategic Housing Land Availability work was completed March 2008 and is now live and public information. The Strategic Flood Risk Assessment is also completed.

o Revised Affordable Housing SPD completed. This was considered and completed at the September Executive and Overview & Scrutiny meeting.

• Cleaner streets - improve the cleanliness of our local roads and public open spaces o New schedules and working patterns are working successfully with performance in the top quartile.

3. Customers: To put our customers at the heart of everything we do • Performance & Satisfaction - Improve our service performance and customer satisfaction o As far as the benefits improvement plan is concerned all actions have been delivered 100%, furthermore the transformation and turnaround in performance of the benefits team was formally recognised by the DWP which resulted in a Ministerial visit in March this year.

o Council tax collection is up by approx 1% compared to the same stage last year.

o Non domestic rate collection is up by approx 1%. At present this is a positive sign that in year collection figures will improve from 98.3% and 98.5% respectively.

o Before Sept last year, outstanding correspondence volumes were usually between 1,500 and 2,000.

o Lean Review in Revenues continues to make progress. The average days taken to deal with correspondence are currently 10 days. Prior to the Lean Review this was 28 days.

o Performance across C&A services continues to improve. Street Cleansing shows greatest improvement with NI 195 improving in the last 6 months from 13% to 6%

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o Comments & Complaints Update report sent to Standards Committee in July. For the whole Council, the number of events has reduced by 40% and the proportion of complaints/negative comments has remained relatively static.

• Equality of Access - Make it easier for all our customers to access our services o The Council now offers a wide range of payment options for services, including debit & credit card over the internet, by phone and at reception. Services covered include, car parking building control, trade refuse, planning, rents, licences, council tax and business rates.

o BACS is now the preferred method of payment for Council creditors.

o Access to local services have improved by having an improved web search facility for planning applications and associated plans and documents with the ability to consult online.

o Improved online information for waste and recycling, including the ability to apply for additional wheeled bins and assisted collections, reporting missed collections and a postcode search to determine bin collection days.

• Consultation & Communication - Listen and talk with our residents, young people and businesses o Meeting bi-monthly. 6 meetings have already taken place this Service now delivered by Wiltshire County Council's Youth Development Service.

o All five Community Areas in the development phase for Area Boards. Each Community Area has now had at least one pilot Area Board.

• Training & Development – Develop our staff and councillors to give their best to residents o We have been conducting a programme of member training. Since April 08 the following workshops have been run:- Better Engagement, Lean Overview, Community Leadership, Advanced Chairing, Corporate Manslaughter Awareness.

o A number of workshops have been offered to employees including embracing change, career decisions, interviewing skills and CV writing.

• Budget - Use your money effectively and efficiently and explore new ways of working o The various budgets and plans already demonstrate that NWDC has met its 3% Gershon efficiency target for the three year period, as at 31st March 2008.

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o Ongoing drive for efficiency and this will be driven further by the new Unitary Authority to enable it to reduce costs and improve services

• Transition to new Unitary Authority - Ensure “business as usual” for service delivery to the public and a smooth handover to the new Council – o NWDC's Transition Team now subsumed into the Corporate Management Team. As the new Wiltshire Authority Service Directors are appointed, there is a move towards the various Project Teams looking to the SDs for future guidance.

o Staff engaged in all Project Teams.

o New County-wide Elections team in place within Monkton Park.

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EXPLANATORY FOREWORD TO THE ACCOUNTS

1. INTRODUCTION

These accounts include details of the accounting principles in accordance with which the Council has prepared the financial statements and balance sheet.

2. EXPLANATION OF THE FINANCIAL STATEMENTS The purpose of the Statement of Accounts is to give all stakeholders clear information about the financial performance of the Council in 2008/09.

The statements consist of the following:

a) Income & Expenditure Account The Council’s main revenue account covering income and expenditure on all services.

b) Statement of Movement on the General Fund Summarises the differences between the outturn on the Income & Expenditure Account and the General Fund Balance

c) Statement of Total Recognised Gains and Losses Reflects all gains and losses experienced by the local authority during the year and shows the aggregated increase in the Council’s net worth.

d) Balance Sheet Sets out the overall financial position of the Council as at 31st March 2009.

e) Cash Flow Statement Summarises the total movement of the Council’s cash funds.

f) Collection Fund Account Covers all income and expenditure in respect of Council Tax and Non-Domestic Rates and the change to the fund balance at the year end.

These accounts are supported by the Statement of Accounting Policies (detailing the legislation and principles on which the Statement of Accounts has been prepared) and various explanatory notes to the accounts.

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3. EXPENDITURE BY SERVICE AREA

The overall Cost of Services was £24.1m against a budget of £19.2m; an overspend of £4.9m. Major variances are shown in the following section;

£m Deferred Charges 3.0 Building Impairment 1.4 Redundancies 1.9 Net Shortfall - Rent Allowances 0.5 Additional Depreciation 0.1 Staffing Saving (0.6) PFI Interest Credit (added below the line) (0.6) Pension Adjustment (0.9) 4.9

The net impact to the general fund, from the cost of services, is as follows;

£m £m Overspends Redundancies 1.9 Net Shortfall - Rent Allowances 0.5 2.4 Underspends Staffing Saving -0.6 Executive Community Funding Saving -0.2 Other savings -0.2 -1.0

Net additional C ost of Services 1.4 1.4

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4. CAPITAL EXPENDITURE

The Council’s total capital expenditure for 2008/09 including amounts accrued for works completed but not paid for at 31st March 2009 was £8.1m, (£5.2m 2007/08) which included £1.4m on vehicle plant and equipment. The significant items within the programme were affordable Housing schemes (£1.4m), Housing Renewal Grants (£1m) and leisure centre improvements of £1.4m. The amount funded through grants was £0.5m (£0.6m 2007/08). The balance of £7.6m (£4.6m 2007/08) was funded from Capital Receipts, revenue and Third Party Contributions.

5. COLLECTION FUND

The Collection Fund is a statutory fund, which shows the transactions relating to Council Tax, Non-Domestic Rates and residual Community Charge and illustrates the way in which these have been distributed to preceptors and the General Fund.

The income to the fund is the amount collectable from Council Tax and Non-Domestic Rate payers. Expenditure from the fund comprises payments in respect of precepts raised by the Wiltshire County Council, Wiltshire Police Authority, the Wiltshire & Swindon Fire Authority, by North Wiltshire Council for its own General Fund requirements and Parish/Town Council requirements, and payment to the Government for Non-Domestic Rates collected.

It was estimated in 2007/08, that the Fund would have a surplus of £769,000 at 31 st March 2009, which was fully taken into account in setting the budget. However, the surplus for the year was £874,000, a decrease of £1.24million. £769,000 will be distributed during 2009/10 to the major precepting authorities.

6. DEBT FINANCING

The council reviewed it’s financing policy in light of the move to One Council for Wiltshire. The council’s executive agreed not to proceed with any long term financial / investment plans beyond April 2009 nor to arrange any other long term borrowings. The interest earned on the accumulated capital receipts and other investments amounted to £2.28m, which exceeded the 2008/09 budget.

7. BORROWINGS

In March 2007 the council borrowed £4m on a 60 year LOBO with a review after 5 years. No other long term loans will be obtained. In addition, the Council has a long term liability of £8.842m as a result of the PFI arrangement to fund its offices at Monkton Park. Further details are in the notes to the accounts (Note 21).

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8. PENSION LIABILITY

At the end of March 2009 the Authority’s net pension deficit stood at £25.2m (March 2008 £17.4m). The deficit on the pension scheme will be made good by increased contributions over the remaining working life of employees, as assessed by the scheme actuary.

9. CHANGE IN SERVICE DELIVERY

Following the Government’s decision on 25 July 2007 it was announced that Wiltshire County Council’s bid for Unitary status was successful. The County Council is the continuing council, overseeing the changeover into the creation of a new council in April 2009.

In early 2007, the council changed service provider for the leisure service to an agency agreement with DC Leisure. This was to have been a short term arrangement whilst market testing took place. With the move to One Council for Wiltshire, the council has not gone to the market, and the arrangement with DC Leisure has continued, in agreement with the continuing authority.

10. SIGNIFICANT CHANGE IN ACCOUNTING POLICY

Due to the re-structure resulting in a single Wiltshire Council, accounting policies have been harmonised: the principal amendments being changes to the de minimis thresholds for both assets and accruals. In the former case, the de minimis threshold for assets has changed from £1,000 to £10,000. In the latter case, the de minimis threshold for accruals has increased from £250 to £500.

The Council has also adopted both LAAP 78 and LAAP 82 in relation to the treatment of Icelandic Bank investments. The appropriate accounting entries have been incorporated into the statement of accounts.

11. OTHER COSTS

North Wiltshire District Council paid £168,000 in respect of interest on its loan with Bayerische Landesbank. This interest payment is in line with expectations. Other interest and fees payable amounted to £44,000. As a result of the adoption of LAAP 82, the Council has also written off a part of the cost of its Icelandic Bank investments totalling £724,671.

12. OTHER INCOME

In 2008/09, North Wiltshire received £68.8m from local tax payers, along with a further £39.2m contribution from local businesses. These are in line with the Council’s 2008/09 budget. It also received £1.72m in Revenue Support Grant (including £728,000 special

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RSG), £205,697 in Local Authority Business Growth Initiative Grant, £261,267 capital grant for Malmesbury Pool and £22,500 in Area Based Grant.

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STATEMENT OF ACCOUNTING POLICIES

Introduction

The accounts have been prepared in accordance with the ‘Chartered Institute of Public Finance and Accountancy’ Code of Practice on Local Authority Accounting in the United Kingdom 2008 – A Statement of Recommended Practice (SORP). The Code is a statement of “proper accounting practice” with which local authorities in England and Wales must comply in preparing financial statements in accordance with sections 41 and 42 of the Local Government and Housing Act 1989 and section 21 of the Local Government Act 2003.

The accounting convention adopted is historical cost, modified by the revaluation of certain categories of tangible fixed assets. The accounting policies and estimation techniques applied have been selected and exercised having regard to the accounting principles and policies set out in FRS 18 (Accounting Policies) relating to:

• The quantitative characteristics of financial information: relevance, (ii) reliability, (iii) comparability and (iv) understandability.

• Pervasive accounting concepts: accruals, (ii) going concern, (iii) primacy of legislative requirements.

Debtors and Creditors

The accounts of the Council are maintained on an accruals basis. That is, sums due to or from the Council for the appropriate financial year are included in the accounts whether or not the cash has actually been received or paid in that year.

In particular:

• Fees, charges and rents due from customers are accounted for as income at the date the council provides the relevant goods or services.

• Supplies are recorded as expenditure when they are consumed

• Interest receivable in investments is accounted for in the year to which it relates, rather than when it is actually received

The main exception to this is the Cash Flow Statement, which is based upon cash movements. Other exceptions to this principle are electricity and similar quarterly payments which are charged in the revenue accounts at the date of meter reading rather than being apportioned between financial years. Similarly annual services paid by a single payment are debited or credited based on the renewal date. The effect of these exceptions is not considered material.

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Where income and expenditure has been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is included in the accounts. A “de minimis” figure of £500 has been set for all amounts to be accrued.

Provisions and Reserves

Provisions are established for any definite liability but where the timing or cost is unknown. Provisions are charged to the appropriate service revenue account in the year that the authority becomes aware of the obligation. Provisions for doubtful debts are shown in the Balance Sheet as a reduction to debtors rather than under this heading.

Money prudently held as a general sum against future needs is classed as a reserve and payments to it do not count as service expenditure. Money held in reserve is transferred back to revenue to meet needs as they arise.

The Council sets aside amounts as reserves for future policy purposes or to cover contingencies. There are two types of revenue reserves:

♦ A General Fund Balance maintained for general rather than specific, future expenditure, which is held in order to be prudent and the only intended use of this balance would be in the case of unexpected expenditure, income loss or budget overspend;

♦ Earmarked Reserves, which are maintained for specific purposes that do not fall within the definition of provisions. The expenditure, or income, charged to these reserves is included in the Income and Expenditure Account, with a contribution to or from reserves included in the Statement of Movement on the General Fund Balance.

Pensions

The pension scheme offered by the Authority is a Defined Benefit Scheme and is administered by Wiltshire Council. The Financial Statements have been compiled in accordance with the standard set down by the Accounting Bodies (FRS 17 ‘Retirement Benefits’). FRS 17 requires that an organisation should account for retirement benefits when it is committed to give them, even if the actual giving will be many years in the future.

Costs have been determined on the basis of contribution rates that are set to meet 100% of the liabilities of the Pension Fund, in accordance with relevant Government regulations. As a result, the County Council does not comply with the accounting requirements of UK GAAP in accounting for pension costs, and the liabilities included within the balance sheet are understated in respect of pension costs. However, in accordance with standard accounting practice, the additional costs that it would then have been necessary to provide for in the accounts for the period, using UK GAAP, are

Appendix 2 disclosed by way of a note to the accounts.

The liabilities on the pension scheme attributable to the council are included in the balance sheet on an actuarial basis using the projected unit method – i.e. an assessment of the future payments that will be made in relation to retirement benefits earned to date by employees, based on assumptions about mortality rates, employee turnover rates etc. and projections of projected earnings of current employees.

Liabilities are discounted to their value at current prices, using a discount rate to be determined by the actuaries, which is based on the indicative rate of return on high quality corporate bonds (iboxx Sterling Corporates Index, AA over 15 years)

Assets are valued as follows: • Quoted securities – mid-market value • Unquoted securities – professional estimate • Unitised securities – average of bid and offer rates • Property – market value

The net pensions liability is analysed into:

• Current service cost – the increase resulting from service earned this year and charged to the relevant service

• Past service cost – the increase resulting from current year decisions but relates to service earned in previous years and charged to Non Distributed Costs

• Interest cost – the expected increase as it moves one year closer to being paid and charged to Net Operating Expenditure

• Expected return on assets – the annual investment return on assets, based on an average of the expected long-term return and credited to Net Operating Expenditure

• Gains/losses on settlements and curtailments – the result of actions to relieve the Council of liabilities or events that reduce the expected future service or the accrual of benefits of employees and charged or credited to Non Distributed Costs

• Actuarial gains and losses – changes that arise because events have not coincided with assumptions made at the last actuarial valuation or because the actuary has updated his assumptions and are charged or credited to the Statement of Total Recognised Gains and Losses

• Contributions paid into the fund – cash paid as employers contributions to the fund

A complete set of accounts and details of its nature, investment performance and actuarial position are reported separately in the Wiltshire Pension Fund Annual Report. VAT

Only irrecoverable VAT is included in revenue or capital expenditure.

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Cost of Support Services

Support Services are units that mainly provide services that support the general working of the Council rather than providing direct services to the public. Support service and departmental overhead costs have been fully recharged to operational units providing direct services. Charges are based upon time allocations, floor areas and actual usage.

• Apportionable central overheads include all those central support service costs such as finance, internal audit, human resources, IT, Legal etc. Their costs are therefore included within the operational service costs.

• Non-distributed costs are excluded from apportionable overheads. Instead, they are treated as a separate category comprising:

• Past service (pension) costs • Settlements (pension cost) • Curtailments (pension cost) • The cost associated with any unused shares of IT facilities • The costs of shares of other long-term unused but unrealisable assets.

The Corporate and Democratic Core is identified as a separate service, in accordance with CIPFA recommendations. This relates to costs that arise from the operation of the Council as a multifunctional authority, which are not directly attributable to any one service.

Fixed Assets and Depreciation

Tangible Fixed Assets are defined as expenditure on the acquisition of, or enhancement to, the value of tangible assets that yield benefits to the Council for more than one year. Non-operational assets are those fixed assets held by the Council but not directly occupied, used or consumed in the delivery of services. Within this category, the Council includes commercial and investment properties and assets in the course of development. Investment properties are defined as an interest in land and/or buildings, which are held for their investment potential.

Intangible fixed assets are defined by FRS10 as “non-financial assets that do not have physical substance but are identifiable and are controlled by the entity through custody or legal rights.” The SORP requires intangible fixed assets to be amortised to the revenue account over their economic lives. For most Local Authorities there are three main classes of intangible assets:

§ Purchased software licences § Licences, Trademarks and artistic originals § Patents

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All expenditure on the creation, or enhancement, of fixed assets is subject to a lower threshold level of £10,000, and is capitalised on an accruals basis.

All of the Council’s major tangible assets are included and have been properly valued by a professional valuer as detailed below. Fixed assets were originally valued on 1 April 1994 and since then have been re-valued on a three year rolling programme. Property asset values in the accounts reflect revaluation as at 31st March 2009.

Assets have been valued on the following bases:

Operational Assets:

• Land and Buildings – the lower of net current replacement cost or net realisable value in existing use

• Vehicles, Plant, Furniture and Equipment - the lower of net current replacement cost or net realisable value in existing use

• Infrastructure and community assets – historic cost

Non operational assets:

• Investment Properties – the lower of net current replacement cost or net realisable value in existing use

Depreciation is provided for on all assets with a determinable finite life, by allocating the value of the asset in the balance sheet over the periods expected to benefit from their use. In these accounts, depreciation is calculated on a straight-line value over the life of the asset. All assets, with the exception of land, have been depreciated in these accounts.

Depreciation & Amortisation has been applied in these accounts on the following basis:

• Other Land and Buildings. Garages and Buildings are depreciated on a straight line basis over the useful life of the asset (50 years). Land is not depreciated.

• Vehicles, Plant etc. These are depreciated on a straight line basis over 5 years.

• Community Assets, Assets Under Construction and Non Operational Assets. These are not depreciated.

• Intangible Assets are amortised on a straight line basis over 5 years.

Impairment

Assets that have reduced in value because of a change in condition such as general dilapidation, or an unusual event such as a fire, will be shown to have suffered an impairment loss in the balance sheet. This is charged to the Income and Expenditure Account. It may be reversed in a subsequent year when the asset has been restored.

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Disposals

Gains and losses on the disposal of fixed assets are recognised in the Income and Expenditure Accounts. This is a change from the policy applicable last year following a change to the Statement of Recommended Practice

Capital Programme

New capital projects are treated as work in progress until they are formally handed over to the service as completed and ready for use. At completion the new asset is recorded in the Council’s asset register unless no value has been added.

Leasing/Rental of Land and Buildings

All property leases are of short duration and do not give rise to the creation of a capital asset under accounting standards. Lease/rental costs are charged to the revenue budget in the year to which they relate.

Capital Charges

Depreciation charges are made to all service revenue accounts and central support service accounts with respect to asset usage except for freehold land and assets under construction.

Details of the Valuer Used

North Wiltshire District Council uses Gerald Harford of Humberts, King's Head House, 35 Market Place, Chippenham.

Capital Receipts

Income received above £10,000 from disposal of a fixed asset is called a capital receipt. It is held in the capital receipts unapplied account until either used to buy new assets or repay debt. The General Fund or the Housing Revenue Account, as appropriate, receives interest on the balance. Legislation requires a percentage of capital receipts to be set aside against outstanding debt unless the Council is debt-free. This appears in the balance sheet within the Capital Adjustment Account.

A proportion of receipts relating to housing disposals is payable to the government as part of the pooling scheme. All receipts that are not used to finance capital expenditure shall be used to offset the funding shortfall in the Wiltshire Pension Fund, as agreed with the Department for Communities and Local Government.

Where capital grants and contributions are received these are written down (credited) to the Income and Expenditure Account in the year. A corresponding charge is made through the Statement of Movement on the General Fund Balance to ensure that there is no impact on the level of Council Tax.

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Charging Revenue for Capital Development

Part IV of the Local Government and Housing Act 1989, dealing with the control of local authority capital expenditure and finance, requires local authorities to provide for credit liabilities arising from capital commitments, including the redemption of loan debt. The law requires that where a Council borrows to fund capital development, as measured by its Capital Financing Requirement, it should charge to its revenue account a minimum level of principal repayment that equals 4% of unfinanced expenditure. This charge is called the ‘Minimum Revenue Provision’. Generally, the Council does not borrow to fund capital expenditure and therefore, under normal circumstances, the Council does not need to make a minimum revenue provision.

Deferred Charges

The accounting treatment of what were formally known as deferred charges has now changed. Deferred Charges were capital payments that do not create fixed assets for the council, such as improvement grants for houses in private ownership or miscellaneous capital grants to third parties. These are now treated as Revenue Expenditure Funded from Capital under Statute .

Leasing

While North Wiltshire generally does not finance acquisitions through leasing arrangements, and acquisitions through operating leases would be charged to the Revenue Account on a straight-line basis over the term of the lease. Any assets acquired on a finance lease would be included as fixed assets on the balance sheet along with the outstanding future liability. The liability is written down in accordance with SSAP21 and the associated guidance issued.

Operating Leases are those leases in which the lessor retains most of the risks and rewards of ownership of the asset. The assets acquired through operating leases do not appear in the Council's balance sheet, as the Council does not own them. The leasing payments are charged directly to the service having use of the asset.

Property lease rentals are charged directly to service revenue accounts.

Investments

The introduction of the 2007 SORP saw a change in the accounting treatment of investments, which was dependant on their classification. The investments held by North Wiltshire are classified as financial assets and may be recognised as either ‘loans and receivables’ or ‘fair value through profit and loss’.

• Loans and receivables – investments that have fixed or determinable payments but are not quoted in an active market. These are initially measured at fair value and carried at their amortised cost. Annual credits to the Income and Expenditure account are based on the carrying amount of the asset multiplied by the effective rate of interest for the instrument.

• Fair value through profit or loss – forward contracts to purchase investments carried

Appendix 2

at fair value based on the trade date. At the settlement date the delivery will be treated as loans and receivables and any difference between its fair value and the consideration paid is the gain or loss on the forward contract. If the forward contract is still open at the balance sheet date it will be included as an asset or liability and any gain or loss taken to the Income and Expenditure Account.

Stocks and Work in Progress

Stocks are generally valued at the lower of cost or net realisable value in accordance with the Code of Practice and Statement of Standard Accounting Practice 9 (SSAP 9). An average or standard cost is applied to calculate the cost.

Work in progress, where the actual or estimated valuation of a job exceeds, £5,000, is taken into the accounts at cost. Adjustments are made for attributable profits less any foreseeable losses and any payments received or receivable.

Grants and Contributions

All revenue grants have been credited to the accounts for the period to which they relate in accordance with SSAP4. They are matched in the service revenue accounts with the expenditure to which they relate.

SSAP 4 also requires that grants in respect of capital expenditure be credited to the revenue account over the useful life of the assets financed by those grants. Grants used to finance depreciable tangible assets since 1 April 1994 have been treated in accordance with SSAP 4.

Capital grants applied to finance capital expenditure that will be incurred wholly or partly in the future will be treated as receipts in advance and held as government grants unapplied. They are then credited to the Government Grants Deferred account once the asset has been completed and is in use by the service. Amounts are released from this account to offset any depreciation on assets.

Where the capital grant cannot be directly attributed to a specific asset, the grant is written off in full to the Service Revenue Account, in the year of receipt.

Internal Interest

Surplus monies arising from capital and revenue transactions may be utilised in lieu of borrowing from external sources. Memorandum interest on the average level of this internal borrowing is calculated by using the Bank of England Average Base Rate to enable average borrowing to be calculated for the year.

Where we hold funds involving third parties, interest is credited to the relevant fund at a rate based on the average seven-day rate at which the Council would normally borrow money.

Appendix 2

Bad Debt Provision

The Council makes a provision for those debts it anticipates may be difficult or impossible to collect. The provision is assessed following an examination of all debts outstanding taking account of the nature and age of the debt and any arrangements for recovery.

The current policy on assessing bad debt provision has historically delivered a provision which far exceeds the Council's actual write-off requirements. Therefore, in order to make prudent provision, while bringing levels more in line with expected write offs, both the housing benefit and council tax provision calculations have been amended as follows:

Housing Benefit: 50% for 2008/09, 75% for 2007/08, 90% for 2006/07, 100% for previous years Council Tax: 7% for 2008/09, 15% for 2007/08, 20% for 2006/07, 50% for 2005/06, 100% for previous years.

A provision will be made for Sundry Debtor debts based upon a thorough review of all outstanding debts, on the basis of:

• 100% for any debt outstanding for more than one year

• 50% for all debts outstanding for more than six months but less than one year if there is no clear information relating to recovery,

• 5% for all other debts, reflecting the likelihood that some debts will not be collected.

No provision should be made for Government Grant debtors or any debt where legal action indicates repayment will be forthcoming or any debt in a Council owned ‘businesses’. Debts owed by Council businesses are not considered debts but inter- departmental transactions.

Contingent Liabilities

No provision is made in the accounts for contingent assets or contingent liabilities where it is not practicable to estimate the amount involved or if there is considerable uncertainty over the possible outcome. However, where the amounts are likely to be material, the nature of the contingency is disclosed in a note to the accounts.

Post Balance Sheet Events

Post Balance Sheet Events are defined as those events that occur between the balance sheet date and the date on which the accounts are approved by the authority (by the end of June). There are two different types of event. Adjusting events are those that provide additional evidence of conditions existing at the balance sheet date. Non-adjusting are those events that concern conditions that did not exist at the balance sheet date.

Appendix 2

Prior Year Adjustments

Exceptional items are included in the cost of the service to which they relate unless they are so material that fairer representation of the accounts is given by separate disclosure.

Extraordinary items are included on the face of the consolidated revenue account.

Prior year adjustments occur where a change in the financial statements or an accounting policy affects the amounts included in the statements. If this occurs, then the comparative figures for prior years will be restated on a similar basis. Where it is not possible to restate the prior year then a note to this effect, together with any information that may help comparison, will be included.

These items are also disclosed in a note to the consolidated revenue account.

Going Concern

This Council along with Wiltshire County Council and the three other district councils are to be abolished on 31 March 2009 and all their duties and responsibilities transferred to a new unitary authority, which will come into being on 1 April 2009. The financial statements have been compiled on a going concern basis as all functions will transfer at that date and it will be for the new authority to decide on any changes to services.

Group Accounts

The Council does not have material interests in subsidiary or associated companies or joint ventures.

Commercial Properties

The Council’s commercial property estate has been classified as a trading undertaking rather than an economic development activity.

Non-Compliance with Code of Practice

For operational reasons, the accounts do not fully comply with the Code of Practice on minor points. The main non-compliance is in relation to debtors and creditors. Whilst the accounts are maintained on an accruals basis i.e. all sums due to or from the Council are included whether or not the cash has actually been received or paid in the year, exceptions are made for quarterly utilities payments based on meter reading dates. Salaries and wages appear on a cash basis. Since these policies are applied consistently year on year, they have no material effect on any one year’s accounts.

Excess Charge Payments

Amounts owed on car parking excess charges are not part of the main accounting system. They are not consolidated into the accounts. The effect of this is not material.

Appendix 2

Foreign Currency Translation

Income and expenditure arising from transactions denominated in a foreign currency is translated into £ sterling at the exchange rate in operation on the date on which the transaction occurred.

Any profit or loss arising on currency transactions will be reflected in the balance sheet, either as a realised or unrealised profit or loss. Financial Instruments

The accounts comply with FRS 25, 26 and 29 which require the disclosure of the Council’s financial instruments, including trade creditors and borrowings, as well as bank deposits, trade debtors and investments. The risks associated with these instruments are outlined in the notes to the accounts.

PFI Contracts

The Council has entered into a long-term contract for the provision and management of Monkton Park Offices. This contract is for a period of 25 years. As part of the contract the Council transferred ownership of three offices to the contractor at a value of £1.05m. This has been treated as a long-term debtor in the accounts that will be amortised over the 25 year life of the contract.

The new offices are treated as an asset of the Council. This is offset by the money owed to the contractor under the 25 year agreement. It appears as a long term creditor in the Council’s balance sheet.

Endowment and Trust Funds

North Wiltshire District Council does not administer any such funds.

Contingent Liabilities

North Wiltshire DC has accounted for its contingent liabilities as a note to the accounts, in accordance with FRS 12.

Investment in Icelandic Banks

North Wiltshire DC has investments with Icelandic Banks. These will be treated in accordance with LAAP 78 and 82.

Appendix 2

STATEMENT OF RESPONSIBILITIES

1. THE COUNCIL’S RESPONSIBILITIES

The Council is required to:

a) Make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. In this Council, that officer is the Head of Finance & Resources;

b) Manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets;

c) Approve the statement of accounts.

2. THE RESPONSIBILITIES OF THE HEAD OF FINANCE

The Head of Finance is responsible for the preparation of the Council’s Statement of Accounts in accordance with proper practices as set out in the CIPFA/ LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (“the Code of Practice”).

In preparing this Statement of Accounts, the Head of Finance & Resources has:

a) selected suitable accounting policies and then applied them consistently;

b) made judgements and estimates that were reasonable and prudent, unless considered immaterial or otherwise stated in this Statement;

c) complied with the Code of Practice.

The Head of Finance has also:

a) kept proper accounting records which were up to date;

b) taken reasonable steps for the prevention and detection of fraud and other irregularities.

3. Head of Finance’s Certificate I hereby certify that the statement of accounts for the year ended 31st March 2009 required by the Accounts & Audit Regulations 2003 presents fairly the financial position of the Council at the accounting date and its income and expenditure for the year.

Martin Donovan, Service Director, Finance & Procurement

Appendix 2

4. Council Approval

The Final Accounts and Audit Committee, at its meeting on , approved the Statement of Accounts for the year ended 31st March 2009 in accordance with the Accounts and Audit Regulations 2003.

Councillor Chairman of the Final Accounts and Audit Committee

Councillor Jane Scott Leader of the Council

Appendix 2

ANNUAL GOVERNANCE STATEMENT

1) Scope of Responsibility

North Wiltshire District Council is responsible for ensuring that its business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. North Wiltshire District Council also has a duty under the Local Government Act 1999 to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.

In discharging this overall responsibility, North Wiltshire District Council is responsible for putting in place proper arrangements for the governance of its affairs, facilitating the effective exercise of its functions, and which includes arrangements for the management of risk.

North Wiltshire District Council has approved and adopted a code of corporate governance, which is consistent with the principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government. A copy of the code is on our website at http://www.northwilts.gov.uk/index/council- democracy/councils/cd_councils- council_performance/cd_councils_local_code_of_corporate_governance.htm or can be obtained from our finance department. This statement explains how North Wiltshire District Council has complied with the code and also meets the requirements of regulation 4(2) of the Accounts and Audit Regulations 2003 as amended by the Accounts and Audit (Amendment) (England) Regulations 2006 in relation to the publication of a Statement on Internal Control.

2) The purpose of the governance framework The governance framework comprises the systems and processes, and culture and values, by which the Council is directed and controlled and its activities through which it accounts to, engages with and leads the community. It enables the Council to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective services.

The system of internal control is a significant part of that framework and is designed to manage risk to a reasonable level. It cannot eliminate all risk of failure to achieve policies, aims and objectives and can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of North Wiltshire District Council’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.

Appendix 2

A governance framework has been in place at North Wiltshire District Council for the year ended 31 March 2009 and up to the date of approval of the Statement of Accounts. 3) The Governance Framework The key elements of the systems and processes that comprise the Council’s governance arrangements are set out below: -

A. The monitoring of performance i. Setting the authority’s vision and priorities

The council set its priorities for 2007/08 and 2008/09 and following two Policy Days in 2007/08 – to which all members were invited – and work from the Budget and Strategic Planning Working Group. Three corporate priorities were agreed – all underpinned by the Council’s Mission: Improving North Wiltshire

Vision: Vibrant, diverse and healthy communities living in a clean and safe environment

Priorities: 1. Community : To promote vibrant, safe and inclusive communities 2. Environment: To protect and enhance the local environment 3. Customers: To put our customers at the heart of everything we do

The council’s corporate plan was developed from this. Each priority was underpinned by a number of goals, indicating what the Council hopes to achieve in the next 3-5 years. Additionally service plans feed to and from the corporate plan.

ii. Reviewing Vision and Priorities

iii. Monitoring of Performance

in 2007/08 work plans, ensuring that progress could be monitored at an individual level.

Appendix 2

Performance against key performance indicators was monitored and reported regularly to CMB, Executive and Overview and Scrutiny Committee.

Monthly revenue and capital budget monitoring reports were produced and reviewed by Corporate Management Board and reported to the Executive.

Monitoring of strategic and operational risks took place through monthly performance monitoring, reviewed by the Corporate Management Board.

Task groups were formed – by Overview and Scrutiny Committee, or by the Executive - where members identify issues of concern e.g. public conveniences, leisure provision.

B. Facilitation of policy and decision making The Council’s Constitution sets out how the Council operates, how decisions are made and the procedures that are followed to ensure that these are efficient, transparent and accountable to local people. Within this are clear codes of conduct, defining the standards of behaviour for members and staff.

C. Ensuring compliance with relevant laws and regulations The statutory officers, the Head of Paid Service (Chief Executive), the Monitoring Officer, Head of Finance & Resources (Section 151 Officer) have key roles in monitoring and ensuring compliance with the Council’s regulatory framework and law. For example, the Monitoring Officer has a duty to report on any actual or likely decision that would result in an unlawful act or maladministration; the Head of Finance & Resources is responsible for the proper administration of the authority’s financial affairs and internal audit function.

Whistle Blowing and Anti-Fraud and Corruption policies provide additional safeguards.

Compliance was monitored through staff supervision, the work of Internal Audit, Overview and Scrutiny Committee, external audit and inspection agencies.

All posts have detailed job descriptions and person specifications that include competencies. Training needs were identified through the appraisal process.

Monthly performance monitoring was reviewed by Corporate Management Board.

External audit – through the Audit Commission - provides an independent appraisal function.

Training has been provided on finance and risk management to members.

Appendix 2

Financial regulations were available on the intranet in an easily accessible summary for members and officers.

Appendix 2

D. Risk Management Final Accounts and Audit Committee now has the overall responsibility for risk management (prior to this, it was the Executive).

A Risk Management Strategy was in place throughout 2008/09.

A corporate risk register was in place and was updated on a monthly basis by Corporate Management Board – based on information in the monthly performance reports from each Business Area. This was reviewed quarterly by the Corporate Management Board. The Finance and Audit Committee also review the risk register on a regular basis.

E. Financial Management The 2008/09 budget was prepared by the finance team in conjunction with the senior officers of the council, and also the members. The budget set out the financial framework for the delivery of the Corporate Plan. The budget was approved by Full Council on 26 th February 2008.

Monthly revenue and capital budget monitoring reports, which report performance against budget, were produced and reviewed by Corporate Management Board and reported to the Executive.

Monthly meetings took place between the Management Accountants and individual Budget Holders to monitor performance against budget, and to provide accounting support as required. Any major variances were then incorporated into the monthly revenue and capital monitoring reports. Through the year the councils’ finance officers have been working with their county colleagues to prepare the 2009/10 budget for the new unitary authority.

Appendix 2

4) Review of effectiveness North Wiltshire District Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. The review of effectiveness is informed by the work of the senior managers within the Council who have responsibility for the development and maintenance of the governance environment, the Internal Audit and Risk Manager’s annual report, and also by comments made by the external auditors and other review agencies and inspectorates.

We have been advised on the implications of the result of the review of the effectiveness of the governance framework by the Audit Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.

Authority The Council’s Constitution sets out how the Council operates, how decisions are made and the procedures that were followed to ensure that these are efficient, transparent and accountable to local people. This has been reviewed and updated during 2008/09.

All of our committees are open to the public, and offer an opportunity for members of the public to ask questions, make statements or deliver petitions.

Executive Monitoring of strategic and operational risks takes place through monthly performance monitoring, reviewed by the Corporate Management Board. The Executive receives budget monitor reports on a monthly basis from July to March each year.

The risk register was updated on a monthly basis and reviewed quarterly, alongside the Corporate Plan, by the Executive.

Final Accounts and Audit Committee The Final Accounts and Audit Committee met bi-monthly to review various financial and audit matters of the council including progress against the internal audit plan, and reviewing the Strategic Risk Register. The FAAC also met to agree with the Council's senior financial officers the closure of accounts.

Overview and scrutiny committee The Overview and Scrutiny Committee seeks to monitor the Executive's work, scrutinise its decisions and to develop policy in a similar way to Parliamentary Select Committees.

Councillors cannot be members of the Overview & Scrutiny Committee if they are members of the Executive. This ensures that the Overview & Scrutiny Committee

Appendix 2 is independent from the decision-making Executive and that no conflicts of interest arise.

Standards committee The standards committee ensures that the members operate within the councillors code of conduct.

The purpose of the Committee is to consider issues relating to the Code of Conduct for Councillors. The powers of the Committee are mainly governed by legal regulations.

Treasury management and investment strategy working group This working group meets quarterly to review treasury activity and strategy, income forecasts, superannuation fund performance reviews. It also reviews the banking, reconciliation and internal security arrangements of the Council.

Internal audit The system of internal control is designed to manage risk to a reasonable level rather than eliminate all risk of failure to achieve the policies, aims and objectives of North Wiltshire District Council. It can provide only reasonable and not absolute assurance of effectiveness. It is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Authority’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.

The internal audit function was primarily carried out by the internal audit department, but the IT systems internal auditing was carried out by external experts – Deloittes.

The internal auditors worked to an audit plan prepared by the Internal Audit Manager and Head of Finance & Resources, and agreed by the Final Accounts and Audit Committee. Quarterly progress reports were reviewed by the Final Accounts and Audit Committee.

Appendix 2

5) Significant governance issues

a) Progress on Significant governance issues from the 2007/08 Governance statement

1 Local Government Reorganisation (Unitary) – Transforming Services, Retaining Key Staff, Delivering Business as Usual The conflicting demands of LGR and maintaining business as usual has been continually controlled throughout the year, with no obvious loss of service. A county wide process for recruitment and retention has been implemented by the LGR HR team with active participation from North Wiltshire DC officers.

2 Capital programme control (Risk Management Register – Significant Risk) CMB / Executive considered issues relating to the use of resources within the ADR team to deliver the capital programme, because of the issues relating to the shortages of staff, number of projects to deliver and difficulty in recruiting to key posts. It was agreed to focus on a number of key project areas and to look at other ways of resourcing the work through outsourcing, transfer to the new authority. A report is going to the CMB / Executive meeting on a monthly basis to keep them updated on projects and any issues arising. This should enable the ADR team to remain focused on the delivery of key capital projects and provide a more efficient and effective use of the available resources.

3 IT Business support (Risk Management Register – Significant Risk) Prioritised resource planning based on business critical systems has been implemented to minimise the risk, and no critical risks have occurred.

4 Business Continuity Planning Business Critical activities have been reviewed and reprioritised by the Business Continuity Team and confirmed by the CMB. Work with the LGR teams has been undertaken in this area. A heating failure in December demonstrated the ability to deliver short term objectives.

5 Collective Agreement with the trade union This has not progressed as the trade union has not responded for over six months. The council has reserves to cover this, and these will be passed onto the new council.

6 IT / Business Transformation Strategy Work has focused on delivering improvements to key areas within Cleansing and Amenities, Council Tax and Benefits.

Appendix 2 b) Current governance issues 1 Long Term Future of Jarvis There are concerns about Jarvis’s financial stability, and the new council should continue to monitor this. Regular meetings have taken place with the Facilities Manager, and there are no major issues for 2008/09

2 Economic Downturn The risk to abstract budgeted revenue from discretionary services such as planning, land charges and trade services has been monitored during 2008/09, and will continue to be a risk in 2009/10.

Appendix 2

6) Signing of the Annual Governance Statement;

Appendix 2

AUDITORS REPORT

Page One

Appendix 2

AUDITORS REPORT

Page Two

Appendix 2

AUDITORS REPORT

Page Three

Appendix 2

AUDITORS REPORT

Page Four s Report

Appendix 2

CORE FINANCIAL STATEMENTS

Income & Expenditure Account This account summarises the resources that have been generated and consumed in providing services and managing the Council during the last year. It includes all day-to- day expenses and related income on an accruals basis, as well as transactions measuring the value of fixed assets actually consumed and the real projected value of retirement benefits earned by employees in the year.

Income and Expenditure Account for the Year Ended 31st March 2009 2007/08 2008/09 Net Gross Gross Net Expenditure Expenditure Income Expenditure £000's Note £000's £000's £000's

235 Central Services to the Public 7,377 (6,411) 966

Cultural, Environment & Planning - 3,762 Cultural & Related Services 5,426 (341) 5,085 5,589 Environmental Services 7,464 (1,219) 6,245 2,208 Planning & Development Services 4,556 (2,153) 2,403

258 Highways, Roads & Transport Services 2,203 (1,945) 258 2,552 Housing Services 26,036 (21,693) 4,343 2,670 Corporate and Democratic Core 4,214 (1,260) 2,954 320 Non-distributed costs 1,808 1,808

17,594 Net Cost of Services 59, 084 (35,022 ) 24,062 15 Loss on Sale of Assets 3 3 4,238 Precepts paid to Parish Councils 4,639 4,639 (314) Deficit from trading undertakings 4 2,765 2,765 799 Interest payable and similar charges 1,520 1,520 Icelandic Bank Impairment 55 906 906 (2,680) Interest and investment income 55-6 (2,307) (2,307) Pension interest cost and expected 313 return on pensions assets 44 1,255 1,255

19,965 Net operating expenditure 70,172 (37,329) 32,843

Amounts to be met from Government Grants and Local Taxation (10642) Demand on Collection Fund (11,290) (11,290) (231) Share of Collection Fund Surplus (309) 309) (1,710) General Government Grant (1,951) (1,951) Distribution from Non-Domestic (6,867) Rating Pool (7,146) (7,146)

515 (Surplus )/Deficit for Year 70 ,172 (58,025 ) 12,148

Appendix 2

Statement of the Movement on the General Fund Balance

The Income and Expenditure Accounts shows the council’s actual financial performance for the year, measured in terms of the resources consumed and generated over the last twelve months. However, the authority is required to raise council tax on a different accounting basis, the main differences being:

• Capital investment is accounted for as it is financed, rather than when the fixed asset is consumed. • Retirement benefits are charged as amounts become payable to pension funds and pensioners rather than as future benefits are earned.

The General Fund Balance compares the Council’s spending against the council tax that it raises for the year, taking into account the use of reserves built up in the past and contributions to reserves earmarked for future expenditure.

This reconciliation statement summarises the differences between the outturn on the Income and Expenditure Account and the General Fund Balance.

STATEMENT OF MOVEMENT ON GENERAL FUND BALANCE

2007/2008 2008/09

£000's £000's General Fund 517 I & E (Surplus)/Deficit for Year 12,148

Net additional amount required by statute and non- statutory proper practices to be debited or credited to the (3,200) General Fund balance for the year (10,653) (2,683) Change in General Fund Balance for Year 1,495

(4,240)) General Fund Balance Brought Forward (6,923)

(6,923) General Fund Balance Carried Forward (5,429)

Appendix 2

Note of reconciling items for the Statement of Movement on the General Fund Balance

Statement of Movement on General Fund Balance

2007/08 2008/09 Amounts included in the Income and Expenditure Account but required by statute to be excluded when determining the Movement on £000s the General Fund Balance for the year Note £000's

(1,386) Depreciation 21/24 (1,544)

836 Government Grants Deferred amortisation 683

(247) Property Impairments 21 (1,416) 0 Alienation of Environmental Schemes from Fixed Asset Account 22 (2,339) 0 Investment Impairments (Iceland Bank Deposits) 55 (906) 0 Investment Impairments (Iceland Bank Deposits) - interest receivable 55 181

(15) Net loss on sale of fixed assets (3) (2,752) Write downs of deferred charges to be financed from capital resources 22 (3,786)

(1,800) Net charge made for retirement benefits in accordance with FRS17 44 (4,096) (5,364) (13,226) Amounts not included in the Income and Expenditure Account but required to be included by statute when determining the Movement on the General Fund Balance for the year

767 Capital Expenditure charged in year to General Fund balance 0

Employers contributions payable to the Wiltshire Pension Fund and 2,201 retirement benefits payable directly to pensioners 44 3,692 2,968 3,692 Transfers to or from the General Fund balance that are required to be taken into account when determining the Movement on the General Fund Balance for the year

(804) Net transfers to or from Earmarked Reserves (1,119) (804) (1,119)

Net additional amount required by statute and non -statutory proper practices to be debited or credited to the General Fund Balance for the (3,200) year (10,653)

Appendix 2

Statement of Total Recognised Gains and Losses This statement brings together all the gains and losses of the Council for the year and shows the aggregate increase in its net worth. In addition to the surplus generated on the Income and Expenditure Account, it includes gains and losses relating to the revaluation of fixed assets and re-measurement of the net liability to cover the cost of retirement benefits.

Statement of Recognised Gains and Losses for the Year Ended 31st March 2009

2007/08 2008/09 £000's Note £000's

517 (Surplus)/Deficit for Year on the General Fund 12,148

(1,842) (Increase)/Decrease Arising on Revaluation of Fixed Assets (179)

(1,224) Actuarial (Gains)/Losses on Pension Fund Assets and Liabilities 6,753

Net Pension Liabilities on business combination 652

699 (Surplus)/Deficit Arising on Collection Fund 1,244

(277) Other (216)

(2,127) Total Recognised Gains and Losses for the Year 20,402

Prior Period Movement in Pension Reserve (206)

Total recognised Gains and Losses since published Statement of (2,127) Accounts for 2007/08 20,196

Appendix 2

Balance Sheet

Consolidated Balance Sheet as at 31st March 2009 31/03/2008 31/03/2009 £'000s Note £'000s £'000s Operational Assets 30,575 Land and Buildings 21 30,237 3,272 Vehicles, Plant, Furniture, and Equipment 21 3,793 4,311 Infrastructure assets 21 2,010 3,277 Community assets 21 3,246 41,435 39,285 Non -Operational Assets 24,319 Investment properties 21 23,272 23,272

65,754 TOTAL FIXED ASSETS 62,558 Long-Term Assets 7,000 Long Term Investments 1,299 Long-Term Debtors 1,276 1,276

74,053 TOTAL LONG -TERM ASSETS 63,833 Current Assets 168 Stocks 189 28,045 Investments 55 24,925 8,098 Debtors 53/55 6,432 (1,810) Less: Provision for Bad Debts (1,669) 4,763 1,061 Sinking Fund 1,273 1,372 Cash and Bank 427

Current Liabilities (7,397) Creditors 54 (7,046) (1,147) Cash Overdrawn (223)

102,443 TOTAL ASSETS LESS CURRENT LIABILITIES 88,140 Borrowing (4,000) Long-term Borrowing (4,000) (8,842) Long Tern Creditors (8,593) (17,406) Pensions Liability (25,215) (6,415) Government Grants Deferred (4,954)

65,780 TOTAL ASSETS LESS LIABILITIES 45,378

Financed by: 1,842 Revaluation Reserve 2,021 0 Financial Instruments Adjustment Account (725) 50,988 Capital Adjustment Account 49,861 16,654 Useable Capital Receipts Reserve 9,566 (17,406) Pensions Reserve (25,215) 4,633 Earmarked Reserves 3,551 6,924 General Fund 5,429 27 Deferred Capital Receipts 18 2,118 Collection Fund 874

65,780 TOTAL EQUITY 45,378 Please note that the Pensions Liability and Pensions Reserve figure for 31/3/08 was retrospectively changed from £17,200 to £17,406 by Hyams Robertson, Pension Fund Actuaries. This explains the difference in net equity for 31/3/08 from £65,986 in the published accounts to £65,780 as shown above.

Appendix 2

Cash Flow Statement

Appendix 2

NOTES TO THE CORE FINANCIAL STATEMENTS

1. Acquired or discontinued operations

2. Exceptional items including Prior Year Adjustments

During the year, £1.865million was spent on redundancies arising as a result of the local government review.

3. Undischarged obligation arising from Long Term Contracts

The Council's new offices were provided under a PFI contract and a long-term creditor has been recorded in the Balance Sheet to recognise the obligation to pay for the building over 25 years. The payments under the unitary charge over the remaining years of the contract are assessed as follows:

2007/08 2008/09 £000's Period £000's 1,807 Within 1 Year 1,871 7,884 Years 2-5 8,160 11,511 Years 6-10 11,914 13,671 Years 11-15 14,150 12,762 Years 16-20 9,735 0 Over 20 years 0

In 2008/09 the unitary charge amounted to £1,859 million (£1.746m in 2007/08) which was funded in part by a specific Revenue Support Grant of £727,527. The unitary charge increases over the life of the contract in line with the retail prices index, whilst the grant is now a fixed sum for the contract term.

A reserve was set up to smooth the net increase in charges to service revenue accounts over the contract term. The contribution to this reserve for 2008/09 was £164,822.

Appendix 2

4. Significant Trading Services (RTC)

The Council operates town centre and other commercial premises on a trading basis. In 2008/09 performance was as follows:

2007/08 2008/09 £000’s £000's Turnover (1,106) (1,119) Running Costs 544 873 Capital Financing Charges 248 3,011 (Surplus)/Deficit for the year (314) 2,765

The increased capital financing charges include revaluations and impairments.

5. Local Government Act 1972 – Section 137

Section 137 of the Local Government Act 1972, as amended, empowers local authorities to make contributions to certain charitable funds, not-for profit bodies providing a public service in the United Kingdom, and mayoral appeals. The Council’s actual expenditure was £0 (£0 2007/2008).

6. Expenditure on Publicity

In the 2008/09 financial year the Council's spending on publicity, as defined by the relevant Regulations, was: 2007/08 2008/09 £000's £000's Recruitment advertising 89 29 Other advertising 58 43 Marketing 29 13 Publicity 63 62 Promotional activities 33 63 Total Publicity 272 210

7. Building Control Account (RTC)

The Building (Local Authority Charges) Regulations 1998 require the disclosure of information regarding the setting of charges for the administration of the building control function. The council sets charges for work carried out in relation to building regulations, with the aim of covering all costs incurred. However, certain activities performed by the Building Control Unit cannot be charged for, such as providing general advice and liaising with other statutory authorities. The statement below shows the total

Appendix 2 cost of operating the building control unit divided between the chargeable and non-chargeable activities.

Building Regulations Trading Account 2008/09

Non- Total Chargeable Chargeable Total 2007/08 2008/09 2008/09 2008/09 £000's £000's £000's £000's

(531) Turnover (431) 0 (431)

285 Employees 271 129 400 0 Premises 12 5 17 25 Transport 24 11 35 Supplies and 17 Services 19 8 27 Third Party 7 Payments 5 2 7 334 Direct Costs 331 155 486

Support Costs 151 37 188

830 Operating costs 482 192 674

Deficit/(Surplus) 299 for Year 51 192 243

This excludes the redundancy costs of the building control manager which is an exceptional item.

8. Agency Services

The Council carries out maintenance of grass verges on an agency basis for Wiltshire County Council, for which it is reimbursed. The income from this service in 2008/09 was £107,308 (2007/08 £103,410).

9. Schemes under the Transport Act 2000

The principle scheme relates to the decriminalisation of car parking whereby this Council undertakes the enforcement of on-street car parking and incurs management costs as a result. During the year 2008/09 the Council spent £252k on on-street parking (£228k in 07/08) and we recovered £325k through fees and charges (£311k in 07/08).

Appendix 2

10. Business Improvement Schemes Not applicable.

11. Local authority (Goods & Services) Act 1970

The Council provides health and safety advisory services and grounds maintenance services to local parishes in the area under section 1 of this Act. The income from these was £500 and £3,913 respectively in 2008/09 (£500 and £3,772 in 2007/08).

12. Health Act 1999 partnership Schemes Not applicable.

13. Local Area Agreement Not applicable.

14. Members Allowances

Total Members’ Allowances paid during 2008/2009 were as follows:

2007/08 2008/09 £ £ Basic Allowance 221,552 237,149 Other Allowances 74,521 64,918 Total Allowances 296,073 302,067

Details of each Member’s individual payments are published annually. Further details of the members allowances is available on our website.

Appendix 2

15. Officers Remuneration

The Accounts and Audit Regulations 2003 (Regulation 7(2)) require disclosure of officers’ emoluments above a set threshold. The number of employees whose remuneration, excluding pension contributions, was £50,000 or more in bands of £10,000 were:

Emoluments Number of Employees 2007/08 2008/09

£50,000 to £59,999 10 0 £60,000 to £69,999 0 1 £70,000 to £79,999 2 0 £80,000 to £89,999 0 5 £90,000 to £99,999 1 3 £100,000 to £110,000 0 1 £110,000 to £120,000 0 1 £120,000 to £130,000 0 0 £130,000 to £140,000 0 2

16. Related Party Transactions

The council is required to disclose material transactions with related parties – bodies or individuals that have the potential to control or influence the council or to be controlled or influenced by the council. Disclosure of these transactions allows readers to assess the extent to which the council might have been constrained in its ability to operate independently or might have secured the ability to limit another party’s ability to bargain freely with the council.

Central government has effective control over the general operations of the council – it is responsible for providing the statutory framework within which the council operates, provides the majority of its funding in the form of grants and prescribes the terms of many of the transactions that the council has with other parties. Transactions with government departments are set out in the Cashflow Statement. Details of these transactions are set out in note 35.

Members of the council have direct control over the council’s financial and operating policies. During 2008/09 works to the value of £5,251 were commissioned from companies in which one member had an interest. No single transaction was for a material sum.

Officers – during 2008/09 no officers declared pecuniary interests.

Appendix 2

Pension Fund - details of contributions to the County pension fund is shown elsewhere in these Accounts (see Note 32 below).

Other Public Bodies - the Council made net payments of £1,429,863 to Westlea Housing Association, where one Councillor is a board member. These payments were for affordable housing grants, housing renewal grants including disabled facilities grants, and provision of a housing waiting list service. Additionally, we invoiced Westlea £116,177 for vehicle maintenance services, and £19,374 for drainage work.

17. Audit Fees

The total amount paid to the Audit Commission during 2008/2009 is as follows:

2007/08 2008/09 £’000 £’000 Fees payable to the Audit Commission with regard to 92 external audit services carried out by the appointed 116 Auditor

4 Fees payable to the Audit Commission in respect of 2 statutory inspection

23 Fees payable to the Audit Commission for the 25 certification of grant claims and returns 119 Total Paid 143

18. For Wales Only Not applicable.

19. Note on Statement of Movement on the General Fund Balance

This is in the Core Statement of Accounts following the Statement of Movement on the General Fund.

20. Statutory Adjustment to Income and Expenditure Account Not applicable.

Appendix 2

21. Summary of Capital Expenditure and Fixed Asset Disposals

Vehicles Infra- Non- Land & Community Plant & structure Operational TOTAL Buildings Assets Equipment Assets Assets Gross cost/value £000's £000's £000's £000's £000's £000's Book value as at 1/4/08 30,575 3,272 4,311 3,277 24,319 65,754 Asset Re-categorised Acquisition and enhancement 1,871 1,370 10 18 960 4,229 Disposals (3) (28) (2,273) (2,304) Revaluation (144) (10) (2,007) (2,161) Impairment * (1,416) (1,416) Depreciation for year (646) (821) (38) (39) (1,544) Book value as at 31/3/09 30,237 3,793 2,010 3,246 23,272 62,558

*In view of the exceptional economic conditions which prevailed in the second half of the 2008/09 financial year the Council requested Humberts carry out a comprehensive impairment review of its investment properties. If fully implemented, this would have resulted in £1.1 million of further impairment to the figures reported above. However, of this amount, £813,000 related to Phelps Parade, Calne; for which a major refurbishment was underway as at 31 st March 2009. Consequently these further impairments were not passed through to the Fixed Asset account.

Fixed assets under construction are categorised as non-operational assets.

Total capital expenditure for 2008/09 amounted to £8.1 million (£5.2 million in 2007/08), analysed as £4.3 million on fixed assets and £3.8 million deferred charges.

2007/08 2008/09 Expenditure on fixed assets £000's £000's Leisure and Related Areas 540 1,391 Vehicles and Equipment 767 1,371 Phelps Parade, Calne 813 Parsonage Way Depot 327 Emery Gate Shopping Centre, Chippenham 147 NW Arts Centre 705 81 Car Parks 385 56 Public Conveniences 47 43 Other 28

Total Funding 2,444 4,257

Appendix 2

The sources of funding of the capital expenditure are outlined below:

2007/08 2008/09 £000's £000's Capital Receipts 3,790 7,423 Capital Grants 640 520 Third Party Contributions 0 4,430 7,948 Equipment Fund 767 Total Funding 5,196 7,948 Movement in Accruals 95 Total Expenditure 8,043

22. Deferred Charges

The movement in deferred charges in the year was as follows:

Balance Balance Written as at Spending off as at in the in the 01/04/2008 year year 31/03/2009 £000's £000's £000's £000's Housing Grants 0 2,352 (2,352) 0 IT Equipment 0 0 0 0 Other Grants 0 1,434 (1,434) 0 Total Deferred Charges 0 3,786 (3,786) 0

A review of the Council’s “environmental schemes” asset balance during 2008/09 indentified that a number of assets should be properly reclassified as deferred charges and, accordingly, written off to revenue. The aggregate value of this write off was £2.3m.

23. Commitments under Capital Contracts

We consider over £250,000 as a significant contractual commitment. The Council had two significant commitments as at 31 March 2009. There are £460,000 of construction commitments outstanding on the Calne Phase 3 (Phelps Parade) project with R J Leighfield, the main contractor. We have also committed £455,000 to Westlea Housing Association for affordable housing building work.

24. Tangible Fixed Assets held

Appendix 2

The Council revalues all of its assets over a 3 year cycle.

The basis for the valuation of assets is as follows: Land and Buildings; • Open Market Value in existing use (where a market existed) • Depreciated Replacement cost (where no alternative market existed) Infrastructure and Community Assets: Historic cost. Vehicles, Plant and Equipment: Purchase price less depreciation. Non-Operational Assets: Open Market Value.

The main land and building assets of the Council are:

At At 31/3/08 31/3/09 District Council Central Office 1 1 Depots 2 2 Public Conveniences & Sewage Treatment Works 22 22 Halls and other operational assets 13 13 Community assets (parks, cycle routes, open spaces) 15 14 Development & investment property (sites) 29 27 Off Street Car Parks 14 17 Leisure Centres 6 6 Other assets including assets under construction 6 4

All assets within these accounts have been depreciated on a straight-line basis, taking into account expected useful lives and residual values. The useful lives of assets are estimated on a realistic basis, they are reviewed regularly and, where necessary, revised. Where the useful life of a fixed asset is revised, the carrying amount of the fixed asset is depreciated over the revised remaining useful life.

Depreciation is charged on each category of assets, in accordance with the table below, although individual assets may be treated differently where appropriate:

Appendix 2

Category Period of depreciation Operational Assets Land and Buildings 60 years Vehicles, Plant, Furniture, and Equipment 5 years Infrastructure assets 60 years Community assets Historic cost, no depreciation Non-operational Assets Market value, no depreciation

25. Leased Assets – Operating Leases

The Council leases cars for some of its employees under three year operating leases. Some of the costs are recovered from the employees. The obligations to the leasing companies are as follows:

2007/08 2008/09 £000's £000's

Paid to lessors 161 216 Due within 1 year 75 108 Due in subsequent years 43 82 Recoverable from employees 50 48

26. Leases Held as Investments

The Council owns 5 shopping centres, 5 industrial estates, 3 mobile home parks as well as 20 other commercial properties* for which it receives rent via lease arrangements.

The value of these properties as at 31 st March 2009 totalled some £23.3m and rents receivable for the year totalled £1.1m.

*This excludes property owned and used by the authority

27. Assets held under PFI

The Council's new offices were provided under a PFI contract and a long-term creditor has been recorded in the Balance Sheet to recognise the 25 year obligation.

The long-term creditor in respect of the PFI project is reducing each year by the repayment of principal element of the unitary charge. In 2008/09 the

Appendix 2 repayment amounted to £0.249 million and this will increase at the rate of 6.5% per annum.

2007/08 2008/09 £000's £000's Monkton Park Offices PFI Project 8,842 8,593

Total Long-Term Creditors 8,842 8,593

28. Fixed Asset Valuation

See Note 24

29. Tangible Fixed Assets

See Note 24

30. Depreciation Methods

The Statement of Accounting Policies states the depreciation methods used.

31. Intangible Assets

We have no intangible assets to amortise, since our software licences are below the de minimus capital level of £10,000.

32. Amortisation of intangible assets

We have no intangible assets to amortise, since our software licences are below the de minimus capital level of £10,000.

33. Analysis of Net Assets in General Fund

All assets of the Council are employed in the General Fund

34. Related Companies

The Authority holds no interest in subsidiary or associated companies.

35. Insurance Provision

We don’t have a specific provision for insurance claims; these would impact the general reserve. This is further discussed in note 38 (contingent liabilities)

36. Provisions

Appendix 2

The council has provisions for bad debts, and accruals, but no other provisions.

Appendix 2

37. Movement on Reserves

The Revaluation Reserve and Capital Adjustment Accounts replaced the Fixed Asset Restatement Account and Capital Financing Account in 2007/08.

Net At 31st At 1st Movement March April 2008 in Year 2009 Purpose of Reserve £000's £000's £000's Revaluation 1,842 179 2,021 Gains on the revaluation of Reserve assets less disposals and impairments Capital 50,988 (1,127) 49,861 A reserve that is credited with Adjustment the amounts set aside for the Account repayment of external debt and with capital expenditure charged to revenue Usable capital 16,654 (7,088) 9,566 Proceeds of sale of assets receipts available to fund capital expenditure Financial 0 (725) (725) Holds the accumulated Instruments difference between the Adjustment financing costs included in the Account I&E and the financing costs charged to General Fund Deferred Capital 27 (9) 18 These credits represent the Receipts capital income still to be received when disposals have taken place, and consist of principal outstanding from past sales of council housing Pensions Reserve (17,406) (7,809) (25,215) Offsets the pensions liability included in the accounts so that there is no net impact upon taxpayers General Fund 6,92 4 (1,465) 5,429 unspent resources available to meet future costs Collection Fund 2,118 (1,244) 874 see collection fund notes Reserve Earmarked 4,633 (1,082) 3,551 Amounts set aside for various Reserves specific purposes TOTAL RESERVES 65,780 (20,370) 45,378

Appendix 2

38a. Contingent Assets

In March 2009 the council made a claim against HMRC for £1.4m + interest of overpaid VAT. We are treating this as Contingent Asset as this is essentially an asset in which the possibility of economic benefit to the Council depends solely upon future events largely outside the control of the Council. They are rights to potential benefits based on past events. As payments remain uncertain (as at 31/03/09), they cannot be placed on the balance sheet but should be disclosed as note to the accounts. There is no certainty that the entire amount claimed will be recovered, as negotiations with HMRC are still in progress.

38b. Contingent Liabilities There are currently three outstanding insurance claims; two are employer liability claims which would be covered by our insurers. The third claim relates to a period which includes a number of years (prior to 1974) where Employers Liability was not compulsory, and the potential liability to the council may be around £65,000.

39. Authorisation of the Statement of Accounts

The Statement of Accounts was issued on 15 th June 2009 by Corporate Finance and authorised by the Audit Committee.

40. Post Balance Sheet Events

41. Trust Funds Not applicable

42. Reserves and Balances held by Schools Not applicable

43. Amounts due to and from Related Parties

Appendix 2

44. Retirement Benefits

The authority provides retirement benefits as part of its terms and conditions of employment. Whilst these benefits are not payable until the employees retire, the FRS17 accounting standard requires that the commitment to make future pensions payments is recognised. The projected unit method of valuation has been used to calculate the service cost.

The authority participates in the Local Government Pension scheme via the Wiltshire County Council Pension Fund. This is a funded scheme hence the authority and its employees pay contributions into the fund which are calculated at a level intended to balance the future pensions liabilites with the Fund's income.

The main financial assumptions on which the Core Statements are based are set out in the following table:

At At At 31/03/2007 31/03/2008 31/03/2009

Assumptions % per annum % per annum % per annum Price Increases (Rate of Inflation) 3.2 3.6 3.1 Rate of Salary Increases 4.7 5.1 4.6 Rate of Increases in Pensions 3.2 3.6 3.1 Rate for discounting scheme liabilities 5.4 6.9 6.9

Changes to the local government pension scheme In preparing the balance sheet at 31 March 2009 and the revenue account to 31 March 2009, allowance is included for the removal of the "Rule of 85" for new entrants to the scheme from 1 October 2006, to the extent that any such new entrants were included in the membership data for the formal valuation at 31 March 2007. No allowance is made for the effect of the abolition of the "Rule of 85" for new entrants since 31 March 2007, due to the fact that there is insufficient information to allow any such adjustment to be made. The impact is likely to be immaterial.

At 31st March 2009, the Authority had the following overall assets and liabilities for pensions that have been included in the balance sheet:

Appendix 2

Net Pension Asset as at 31/03/2007 31/03/2008 31/03/2009 Long- Long- Long- Assets term Assets 1 term Assets 2 term Return Return Return £000's % £000's % £000's % Equities 29,586 7.8 26,774 7.7 21,065 7.0 Bonds 8,007 4.9 7,289 5.7 7,815 5.6 Property 4,154 5.8 4,439 5.7 3,058 4.9 Cash 870 4.9 2,327 4.8 2,039 4.0 Estimated Employer Assets 42,617 7.0 40,829 7.0 33,977 6.3 Present Value of Scheme Liabilities 60,375 57,230 58,169 Present Value of Unfunded Liabilities 1,066 1,005 1,023 Net Pensions Assets/(Liability) (18,824) (17,406) (25,215)

The liabilities show the underlying commitment that the Authority has in the long run to pay retirement benefits. The total liability of £25,215m (£17,406m at March 2008) has a substantial impact on the net worth of the Authority, as recorded in the Balance Sheet.

The fair values of the Attributable Assets are set out in the table below

Assets (Whole Fund) as at: 31/03/0 7 31/03/ 08 31/03/ 09 Long Term Fund Long Term Fund Long Term Fund Return Value Return Value Return Value %per £’000 %per £’000 %per £’000 annum annum annum Equities 7.8 29,586 7.7 26,774 7.0 21,065 Bonds 4.9 8,007 5.7 7,289 5. 6 7,815 Property 5.8 4,154 5.7 4,439 4.9 3,058 Cash 4.9 870 4.8 2,327 4. 0 2,039 Total 7.0 42,617 7.0 40,829 6.3 33,977

1 For 2007/08, the value of assets was previously reported at mid-market value. In order to provide greater consistency, these figures have been re-stated at an estimated bid value at 31 st March 2008.

2 The asset values as at 31 March 2009 are at bid value, as required under FRS 17

Appendix 2

Net Pension Asset as at: 31/03/06 31/03/07 31/3/08 31/3/09 £’000 £’000 £’000 £’000 Estimated Employer Assets (A) 39,844 42,617 40,829 33,977

Present Value of Scheme Liabilities 60,646 60,375 57,230 58,169

Present Value of Unfunded 1,104 1,066 1,005 1,023 Liabilities Total Value of Liabilities (B) 61,750 61,441 58,235 59,192

Net Pension Asset/(Liability) (21,906) (18,824) (17,406) (25,215) (A minus B)

Appendix 2

The movement on the pension liability is further detailed in the table below:

Movement in Pension Year to Year to Year to 31 st Asset/(Liability) for : 31 st 31 st March 2009 March 2007 March 2008 £’000 £’000 £’000 Pension Asset/(Liability) at Beginning of Year (21,906) (18,824) (17,406)

Current Service Cost (1,772) (1,450) (1,080)

Employer Contributions 2,055 2,129 3,608 Contributions in respect of Unfunded Benefits 70 72 84

Past Service Costs (59) - 668

Impact of Settlements and Curtailments (12) (38) (1,093)

Expected Return on Employer Assets 2,669 2,994 2,899

Interest on Pension Scheme Liabilities (3,031) (3,307) (4,154)

Accounting Adjustment (213)

Assumed Liability (1,988)

Actuarial Gains/(Losses) 3,162 1,231 (6,753)

Pension Asset/(Liability) at End of Year (18,824) (17,406) (25,215)

Appendix 2

The following table summarises the transactions that have been accounted for in the Consolidated Revenue Account in compliance with FRS17:

Income and Expenditure Account Year to 31 st Year to 31 st March March 2008 2009 £’000 % of £’000 % of Payroll Payroll Within Net Cost of Services:

Current Service Cost 1,450 18 1,080 13 Past Service Cost 0 0 668 8 Curtailment and Settlements 38 0 1,093 13 Within Net Operating Expenditure :

Interest Cost 3,307 42 4,154 51 Expected Return on assets in the Scheme (2,994) (38) (2,899) (35)

Within Amounts met from Local Government Grants & Taxes:

Movement on Pensions Reserve 328 4 488 6

Actual Amount charged against Council Tax for the year:

Employer’s Contributions payable to the scheme (2,129) (25) (3,608) (44) Net effect on Council Tax of FRS17 adjustments 0 0

The actuarial gains/losses identified as movements on the Pensions Reserve in 2008/09: Year to Year to 31 st March 31 st March 2008 2009 £’000 £’000 Actual return less expected return on Pension Scheme (4,885) (11,884) assets Experience gains and losses arising on scheme liabilities (3,172) (83) Changes in assumptions underlying scheme liabilities 6,826 5,214 Actuarial Gain/(Loss) in Pension Plan 1,2 31 (6,753)

Appendix 2

The following table shows the history of experience gains and losses: History for the financial year to: 31/3/09 31/3/08 31/3/07 31/3/06 31/3/05 £’000 £’000 £’000 £’000 £’000 Difference between the Expected and (11,884) (4,885) (633 ) 5,3 69 637 Actual Return on Assets Value of Assets 33,977 40,829 42,404 39,645 31,183 Percentage of Assets (35.0%) (12.0%) (1.5%) 13.5% 2.0% Experience Gains/(Losses) on Liabilities (83) (3,172) 250 130 1,610 Total Present Value of Liabilities 59,192 58,235 61,441 61,750 52,020 Percentage of the Total Present (0.1%) (5.4%) 0.4% 0.2% 3.1% Value of Liabilities Actuarial Gains/ (Losses) recognised in (6,753) 1,231 3,162 (1,121) (5,880) Statement Total Recognised Gains & Losses Total Present Value of Liabilities 59,192 58,235 61,441 61,750 52,020 Percentage of the Total Present (11.4%) 2.1% 5.1% (1.8%) (11.3%) Value of Liabilities

45. Other Pension Schemes Not applicable

46. Teachers Pension Scheme Not applicable

47. Reconciliation between I&E and Cash Flow Statement

2007/08 2008/09 £000's £000's Surplus/(Deficit) on General Fund (6,923) (12,148) Surplus/(Deficit) on Collection Fund 804 769 (6,119) (11,379) Non Cash Transaction reversed out Other non-cash transactions 6,851 4,244

6,851 4,244 Items on an accrual basis Movement in Debtors (541) 1,666 Movement in Stock 47 (21) Movement in Creditors (2,043) (351)

(2,537) 1,294

Appendix 2

Net Cash Flow from Revenue Activities (1,805) (5,841) 48. Reconciliation of Movement in Cash to Movement in Net Debt

01/04/2008 Movement 31/03/2009 £000's £000's £000's Cash in Hand 1,372 (945) 427 Sinking Fund 1,061 212 1273 Cash Overdrawn (1,147) 924 (223) Total Cash 1,286 191 1477

49. Reconciliation of Liquid Resources from Cash Flow and Balance Sheet This is shown in the main statement of accounts.

2007/08 Movement 2008/09 Short term borrowing 0 Short term investments 28,045 (3,120) 24,925 Cash at bank & in hand 2,433 (733) 1,700 bank overdraft (1,147) 924 (223) Total Liquid Resources 29,331 (2,929) 26,402

Long Term Borrowing (4,000) 0 (4,000)

Total Movement 25,331 (2,929) 22,402

50. Analysis of Liquid Resources

01/04/2008 Movement 31/03/2009 £000's £000's £000's Liquid Resources (Short- Term Investments) 28,045 (3,120) 24,925

51. The Cash Flow Statement This is shown in the main statement of accounts.

Appendix 2

52. Analysis of Government Grants

2007/08 2008/09 £000's £000's

Housing Loan Charges Subsidy 53 68 Other Minor Grants 42 1 Housing Benefits Admin. Subsidy 707 698 Planning Development Grant 115 493 NNDR Allowance for cost of collection 183 177 LABGI 561 752 Total Revenue Grants 1,661 2,189

Appendix 2

53. Analysis of Debtors

31 st March 31 st March 2008 2009 £000’s £000’s General Debtors 1,330 1,178 Central Government 4,657 4,844 Other 2,111 410 Total 8,098 6,432

54. Analysis of Creditors

31 st March 31 st March 2008 2009 £000’s £000’s Trade Creditors (20) (576) Local Authority 258 (700) External Agency (193) (135) Central Government (4,829) (2,682) Other (2,613) (2,953) Total (7,397) (7,046)

55. Financial Instruments - Risk

The Council’s activities expose it to a variety of financial risks:

• Credit Risk – the possibility that other parties might fail to pay amounts due to the authority • Liquidity Risk – the possibility that the authority might not have the funds available to meet its commitments to creditors • Market Risk – the possibility that financial loss might arise for the authority as a result of changes in such measures as interest rate movements.

The Council’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the resources available to fund services. However, no investment is without risk and therefore in addition to investing in organisations with a perceived low level of risk, the Council has sought to spread its risk over a range of organisations in a number of different financial sectors.

The Council’s policies and objectives for treasury management, including risk management, are laid down within its Investment Policy, along with its

Appendix 2

Annual Treasury Management and Investment Strategy. This strategy sets out the Council’s criteria for both selecting and investing with various investment counterparties. A similar process will be undertaken within the new Wiltshire Council.

The annual strategy is reviewed and adopted annually by the Executive Committee of the Council.

Following the recommendations in the Code of Practice the Council has adopted a number of Treasury Management Practices to reflect its treasury management powers and the scope of its treasury management activities. This includes managing risk, through setting clear and prudent criteria for its investment strategy.

Credit Risk

Credit risk arises from deposits with banks and financial institutions, as well as credit exposures to the Council’s creditors. Deposits are not made with banks and financial institutions unless they meet the minimum requirements of the investment criteria as prescribed in the Council’s Annual Treasury Management and Investment Strategy.

The following analysis summarises the authority’s potential maximum exposure to credit risk, based on experience of default and uncollectability over the last five financial years, adjusted to reflect current market conditions. This amount includes a £100,000 loan to Cotswold Water Park and £104,000 to Lady Hungerford Charity.

Amount as Historical Estimated at experience maximum exposure 31/03/09 of default to default and uncollectability £000’s % £000’s Deposits with banks and financial institutions 24,925 19 4,000

No credit limits were exceeded during the reporting period and the Council does not expect any losses from non-performance by any of its counterparties in relation to any of its investments at this stage.

Appendix 2

Icelandic Bank Investments Early in October 2008, the Icelandic banks Landsbanki, Kaupthing and Glitnir collapsed and the UK subsidiaries of the banks, Heritable and Kaupthing Singer and Friedlander went into administration. The authority had £4m deposited across 2 of these institutions, with varying maturity dates and interest rates as follows:

Heritable £1m 5.42% 10 th October 2008 Landsbanki £3m 6.1% 2 nd March 2009

All monies within these institutions are currently subject to the respective administration and receivership processes. The amounts and timing of payments to depositors such as the authority will be determined by the administrators / receivers. The current situation with regards to recovery of the sums deposited varies between each institution. Based on the latest information available the authority considers that it is appropriate to consider an impairment adjustment for the deposits, and has taken the action outlined below. As the available information is not definitive as to the amounts and timings of payments to be made by the administrators / receivers, it is likely that further adjustments will be made to the accounts in future years.

Heritable Bank Heritable bank is a UK registered bank under English law. The company was placed in administration on 7 October 2008. The creditor progress report issued by the administrators Ernst and Young, dated 17 April 09 outlined that the return to creditors was projected to be 80p in the £ by end 2012 with the first dividend payment of 15p in the £ due in the summer of 2009. The authority has therefore decided to recognise an impairment based on it recovering 80p in the £. It is anticipated that there will be some front loading of these repayments and that a final sale of assets will take place after the books have been run down to the end of 2012. Therefore in calculating the impairment the Authority has made the following assumptions re timing of recoveries: July 2009 – 15% July 2010 – 30% July 2011 – 15% July 2012 – 10% July 2013 – 10% Recoveries are expressed as a percentage of the authority’s claim in the administration, which includes interest accrued up to 6 October 2008.

Appendix 2

Landsbanki Landsbanki Islands hf is an Icelandic entity. Following steps taken by the Icelandic Government in early October 2008 its domestic assets and liabilities were transferred to a new bank (new Landsbanki) with the management of the affairs of Old Landsbanki being placed in the hands of a resolution committee. Old Landsbanki’s affairs are being administered under Icelandic law. Old Landsbanki’s latest public presentation of its affairs was made to creditors on 20 February 2009 and can be viewed on its website. This and other relevant information indicates that recovery of between 90-100 % could be achieved, and the authority has taken a mid point position and assumed recovery at 95% by 2012. The authority has therefore decided to recognise an impairment based on it recovering 95p in the £. Recovery is subject to the following uncertainties and risks: • Confirmation that deposits enjoy preferential creditor status which is likely to have to be tested through the Icelandic courts. • The impact of exchange rate fluctuations on the value of assets recovered by the resolution committee and on the settlement of the authority’s claim, which may be denominated wholly or partly in currencies other than sterling. • Settlement of the terms of a ‘bond’ which will allow creditors of old Landsbanki to enjoy rights in New Landsbanki. • The impact (if any) of the freezing order made by the UK Government over Landsbanki’s London branch assets. Failure to secure preferential creditor status would have a significant impact upon the amount of the deposit that is recoverable. The total assets of the bank only equate to one third of its liabilities, assuming that the Bond remains at its current value. Therefore, if preferential creditor status is not achieved the recoverable amount may only be 33p in the £. No information has been provided by the resolution committee about the timing of any payments to depositors. Because it is anticipated that all the assets of Landsbanki Islands will need to be realised to repay priority creditors, settlement in a single sum is unlikely. Therefore, in calculating the impairment, the authority has used the estimated repayment timetables for Heritable and KS&F as a basis for its assumption about the timing of recoveries. It is therefore assumed that the repayment will be split roughly evenly between March 2010, December 2010, December 2011 and December 2012. Recoveries are expressed as a percentage of the authority’s claim in the administration, which it is expected may validly include interest accrued up to 14 November 2008.

The impairment loss recognised in the Income and Expenditure Account in 2008/09, £906,000, has been calculated by discounting the assumed cash flows at the effective interest rate of the original deposits in order to recognise the anticipated loss of interest to the authority until monies are recovered. Adjustments to the assumptions will be made in future accounts as more information becomes available.

Appendix 2

The Authority has taken advantage of the Capital Finance Regulations to defer the impact of the impairment on the General Fund, and a sum of £906,000 has been transferred to the Financial Instruments Adjustment Account. Discussions are ongoing with DCLG to amend Regulations to allow the authority to charge the relevant proportion of the impairment loss, including lost interest, to the Housing Revenue Account and Pension Fund.

The Council sundry debtors can be analysed by age as follows:

£000’s Over one year 54 2 Six months to one year 37 Three months to six months 25 Under three months 159 76 3

Liquidity Risk

As the Council has ready access to borrowings from both the Public Works loans Board and the London Money Market, there is no significant risk that it will be unable to raise finance to meet its commitments under financial instruments.

Market Risk

Interest Rate Risk

The Council is exposed to significant risk in terms of its exposure to interest rate movements on its investments. Movements in interest rates could have a complex impact on the Council. For instance, a rise in interest rates would have the following effects:

• Investments at variable rates – the interest income credited to the Income and Expenditure Account will rise. • Investments at fixed rates – the fair value of the assets will fall.

The Annual Treasury Management Strategy contains the policy for managing interest rate risk. The strategy makes reference to the Council’s Prudential Indicators, which set the upper and lower limits for variable and fixed interest rate exposure.

A cautious approach to interest rates is assumed when setting and reviewing the annual budget.

Foreign Exchange Risk

Appendix 2

The Council has no financial assets or liabilities denominated in foreign currencies and thus have no exposure to loss arising from movements in exchange rates.

56. Financial Instruments – Materiality

The gains and losses recognised in the Income and Expenditure Account in relation to financial instruments are made up as follows:

Financial Financial Assets Liabilities Liabilities Loans and Available Held for Total measured at receivables for sale trading amortised assets assets cost £000’s £000’s £000’s £000’s £000’s Interest expense 574 0 0 0 574 Losses on derecognition 0 0 0 0 Impairment losses 0 0 0 0 Interest payable and similar charges 574 0 0 0 574 Interest income 0 (2, 230 ) 0 0 (2, 230 ) Other Receipts / Interest (77) 0 0 (77) Gains on derecognition 0 0 0 0 Interest and Investment Income 0 (2,307) 0 0 (2,307) Gains on revaluation 0 0 Losses on revaluation 0 0 Amounts recycled to the I+E account after impairment 0 0 Surplus arising on revaluation of financial assets 0 0 Net (gain)/loss for the year 574 (2,307) 0 0 (1,733)

For financial assets carried at fair value, the carrying amounts are determined from quoted market prices.

Appendix 2

57. Financial Instruments – Fair Values

The borrowings and investments disclosed in the Balance Sheet are made up of the following categories of financial instruments:

Long – Term Current 31/03/08 31/03/09 31/03/08 31/03/09 £000’s £000’s £000’s £000’s Financial liabilities at amortised cost 4,000 4000 0 0 Financial liabilities at fair value through profit and loss 0 0 0 Total borrowings 4,000 4000 0 0 Loans and receivables 7,000 204 28,045 24,721 Available-for-sale financial assets 0 0 Held for trading 0 0 Total Investments 7,000 204 28,045 24,721

58. Long Term Borrowing

The Council determined during 2006/07 that in the future funding of capital expenditure would include long term borrowing as a source of finance. No further loans were taken out during 2007-08 due to the pending unification of Councils in Wiltshire

Details are as follows As at 31 March 2009 £000s Analysis of loan by type LOBO- Bayerische Landesbank 4,000

Analysis of loans by maturity* Between 2 and 7 years 4,000

The loan provides options for both the lender and borrower to review every 5 years within the overall period of the loan of 60 years.

In addition, the Long Term Borrowing figure shown in the Balance Sheet includes the £8.593m liability in respect of the Council Offices at Monkton Park details of which are shown in Note 21 above.

Appendix 2

59. Changes in comparative figures for 2008/09 – Fixed Assets

60. Changes in comparative figures for 2008/09 – Income and Expenditure Account

Appendix 2

Collection Fund Income and Expenditure Account

Collection Fund for the Year Ended 31st March 2009

2007/08 2008/09 £000's Note £000's Income

65,225 Income from Council Tax 68,824

Transfers from General Fund 5,381 Council Tax Benefit 5,887

34,783 Income Collectable from Business Ratepayers 37,665

105,389 TOTAL INCOME 112,376

Expenditure

Precepts and Demands 48,940 Wiltshire County Council 52,242 10,642 North Wiltshire District Council 11,290 7,003 Wiltshire Police Authority 7,440 2,783 Wiltshire and Swindon Fire Authority 2,956 Provision for Bad Debt in Year 14

Business Rates 34,586 Payments to the National Pool 37,277 173 Cost of Collection 177 23 Interest on Repayments 32 433 Provision for Bad Debt in Year 179

104,583 TOTAL EXPENDITURE 111,607

(804) MOVEMENT ON FUND BALANCES (769)

(2,817) Balance Brought Forward (2,118)

1,502 Distribution/(Contribution) to Prior Year (Surplus)/Deficit 2,014

(804) (Surplus)/Deficit for the Year (769)

(2,118) Balance Carried Forward (874)

Appendix 2

Notes to the Collection Fund

The Council’s tax base (i e the number of chargeable dwellings in each valuation band adjusted for dwellings where discounts apply) converted into an equivalent number of Band D properties was as follows:

Number of Ratio No. of Band D dwellings to Band D equivalent in 2008/09 dwellings (net of discounts and relief) Band A (with Disabled Relief) 5 5/9 3 Band A 5,135 6/9 3,423 Band B 8,941 7/9 6,955 Band C 11,890 8/9 10,569 Band D 8,829 9/9 8,829 Band E 7,271 11/9 8,886 Band F 4,577 13/9 6,611 Band G 2,420 15/9 4,032 Band H 268 18/9 536 Total 49,336 49,844 Band D equivalents Contributions in lieu (MOD properties) 1,212 Anticipated changes in year 933 Less: Provision for non-collection (1.5%) (750) Total Band D equivalents 51,239

National Non Domestic Rates National Non-Domestic Rates are collected on behalf of the Government to be paid into a National Pool. The Collection Fund receives amounts paid by the Rate Payers in this area, and pays this amount over to the national pool net of allowable costs of collection. The total Non-Domestic Rateable value in the North Wiltshire area as at 31 March 2008 was £88.2 million (£88.6 million at March 2008). The National rate in 2008/09 set by the Government was 45.8p (44.4p in 2007/08).

Precepts and Demands Precepts and demands made on the Collection Fund were as follows; 2007/08 2008/09 £000's £000's Wiltshire County Council 48,940 52,242 Wiltshire Police Authority 7,003 7,440 Wiltshire & Swindon Fire Authority 2,783 2,956 North Wiltshire District Council 10,642 11,290 Total 69,369 73,928

Appendix 2

As the Fund was in surplus, the precepting authorities were not required to make any contribution into the fund. £1,119K of the estimated surplus was distributed to these authorities during 2008/09 as shown below;

2007/08 Distribution of the 2007/08 Projected Collection 2008/09 £000's Fund Surplus/(Deficit) Note £000's (1,421) Wiltshire County Council (543) (309) North Wiltshire District Council (117) (203) Wiltshire Police Authority (77) (81) Wiltshire and Swindon Fire Authority (31)

(2,014) TOTAL (769)

Appendix 2

GLOSSARY OF KEY TERMS

Accruals Sums included in the final accounts of the Council to cover income or expenditure attributable to the accounting period for which payment has not been received/made in the financial year. Local authorities accrue for both revenue and capital expenditure.

Budget An expression mainly in financial terms of the Council’s policy for a specified period

Capital Charges A charge for the use of fixed assets in the provision of services. The charge comprises depreciation.

Capital Expenditure Spending that produces or enhances an asset, like land, buildings, vehicles, plant and machinery. The introduction of the Prudential Framework, supported by the Local Government Act 2003 allows authorities to determine their own plans according to prudent assessments of affordability. Any expenditure that does not fall within the definition must be charged to the revenue account.

Capital Financing Account The Capital Financing Account contains the amounts which are required by statute to be set aside from capital receipts and revenue for the repayment of external loans, as well as amounts of revenue, usable capital receipts and contributions which have been used to fund capital expenditure together with certain other capital transactions.

Capital Receipts The proceeds from the sale of fixed assets such as land and buildings. Capital receipts can be used to repay any outstanding debt on fixed assets or, to finance new capital expenditure, within rules set down by government. Capital receipts cannot, however, be used to finance revenue expenditure.

Collection Fund The Collection Fund is the statutory fund into which council tax and non-domestic rates are paid, and from which we meet demands by preceptors and payments to the non- domestic rates pool. The fund balance is distributed to preceptors and the General Fund.

Contingent Liabilities/Gains Potential losses/gains for which a future event will establish whether a liability/gain exists and for which it is inappropriate to set up a provision in the accounts.

Community Assets These are assets that the Council intends to hold in perpetuity. They mainly represent open spaces for pubic use such as country walks and parks.

Appendix 2

Corporate and Democratic Core This consists of two elements: democratic representation and overall management including elected members costs and corporate management. This latter covers a tightly defined core of central costs and includes the cost of the Chief Executive and parts of other senior officer time. It also includes other matters such as preparing of the Statement of Accounts.

Debtors Amounts owed to the Council but unpaid at Balance Sheet date.

Deferred Charges Expenditure which may properly be charged to capital, and financed over a number of years, but which does not result in a council owned asset.

Depreciation A charge to the income & expenditure account to meet the annual reduction in asset values from usage or elapsed time.

Earmarked Reserves These are reserves set aside for a specific purpose or a particular service, or type of expenditure.

Finance Lease Arrangement whereby the lessee is treated as owner of the leased asset and is required to include such assets within fixed assets on the balance sheet.

Fixed Assets Tangible asset that yields benefits to the Council and the services it provides for a period of more than one year.

Fixed Asset Restatement Account A reserve created as a result of the current capital accounting regulations that enables assets to be shown in the account at current values.

General Fund The main account of the authority to which expenditure and income arising from the provision of services is posted.

Government Grants Contributions from Central Government towards either the revenue or capital cost of local authority services.

National Non-Domestic Rate (NNDR) Under the revised arrangements for uniform business rates, that came into effect on 1 April 1990, the Council collects Non-Domestic Rates for its area based on local rateable values, multiplied by a national uniform rate. The total amount, less certain relief’s and deductions, is paid to a central pool managed by the Government, that in turn, pays back to Authorities their share of the pool based on a standard amount per head of the local adult population.

Appendix 2

Out turn The actual level of expenditure and income in a financial year.

Post Balance Sheet Events A statement of the financial implications of an event taking place after the Balance Sheet date, which has a material effect on the Council’s financial position.

Precepting Authorities Those authorities that are not billing authorities (i.e. do not collect Council Tax) precept upon the billing authority, who then collect on their behalf - Wiltshire Police Authority, Wiltshire & Swindon Fire Authority and the Parishes that precept upon North Wiltshire District Council.

Prior Period Adjustment Material adjustments applicable to prior years, arising from changes to accounting policy or fundamental errors.

Private Finance Initiative A long-term contractual public-private partnership, under which the private sector takes on the risks associated with the delivery of public services in exchange for payments tied to agreed standards of performance.

Provisions Money set aside to meet liabilities and losses that have already arisen at the date of the balance sheet, but for which the amount or dates cannot be determined accurately.

Public Works Loans Board (PWLB) A Government agency that provides the main source of borrowing of local authorities.

Related Parties Individuals or bodies with which the Council has a close economic relationship. It includes elected members and chief officers, Government departments who provide funding, and other bodies who are involved in partnerships with the Council.

Reserves Internal monies set aside to finance future expenditure for purposes falling outside the definition of provisions.

Revenue Expenditure Expenditure to meet the ongoing costs of services that do not create an asset. Examples are pay and running costs of buildings.

Revenue Support Grant This funding is the Government Grant provided by the Dept of Local Communities and Local Government (DCLG) that is based on the Government assessment as to what should be spent on local services. The amount provided by the DCLG is fixed at the beginning of each financial year.

Appendix 2

Document prepared by:

Address: Corporate Finance North Wiltshire District Council Monkton Park Chippenham Wiltshire SN15 1ER

Telephone: 01249 706219 Fax: 01249 658636