Knowsley Town Council Annual Accounts 2013/14
INTRODUCTION
1.1 Town Councils are required to prepare accounting records in accordance with the Accounts and Audit (England) Regulations 2011.
1.2 The above Regulations stipulate that a Town Council must approve its accounting statement by 30 June each year. This approval can only be given by a meeting of the Town Council itself. If a Town Council fails to approve by the deadline date, a “qualified” audit opinion will be issued.
1.3 A Town Council has no legal power to hold revenue reserves other than to cover the general running costs of the local authority or for specifically earmarked purposes. It is generally accepted that revenue reserves held will usually lie between three and twelve months of expenditure. This band is broad and therefore a local authority should consider the level of reserves as part of its risk assessment procedures. Depending on the level of risk, a higher or lower level of reserves may be required for contingencies.
1.4 From an audit perspective, the external auditor may require a local authority to provide an explanation when the reserves of that body exceed twice the annual precept. If an adequate explanation is not provided, the auditor may make recommendations to suggest that the level of reserves is reduced.
1.5 In 2012/13, for the first time, the Town Council received a Local Council Tax Support Grant of £124,372.48. As a result, the annual precept demand was considerably reduced to £214,125.52. These two figures must now be separated for accounting purposes. The Town Council’s reserves in 2013/14 (at £559,669.18) were significantly above the threshold figure and an explanation may be subsequently required for the level of the General Fund Balance.
1.6 These accounts and statement of Knowsley Town Council have been prepared in accordance with the Accounts and Audit (England) Regulations 2011.
………………………
(Paul Lawday) (Clerk of the Council)
7 Knowsley Town Council Annual Accounts 2013/14
BALANCE SHEET AS AT 31 MARCH 2014
LONG TERM INVESTMENTS 2012/13(£) 2013/14(£)
Investments 00.00 00.00 Long term debtors 00.00 00.00
CURRENT ASSETS
Stocks and shares 00.00 00.00 Work in progress 00.00 00.00 Debtors 441.03 00.00 Payments in advance 00.00 00.00 VAT recoverable 15,915.83 5,878.46 Temporary lending 00.00 00.00 Cash in hand 498,706.13 554,527.03
TOTAL ASSETS 515,062.99 560,405.49
CURRENT LIABILITIES
Creditors 1,661.83 736.31 Temporary borrowing 00.00 00.00 Payments received in advance 00.00 00.00
TOTAL 1,661.83 736.31
NET ASSETS 513,401.16 559,669.18
Represented by:
General Fund Balance 513,401.16 559,669.18 Reserves: Capital 00.00 00.00 Earmarked 00.00 00.00 External 00.00 00.00 Adjustments 00.00 00.00
TOTAL 513,401.16 559,669.18
The above statement represents fairly the financial position of Knowsley Town Council as at 31 March 2014 and reflects its income and expenditure during the year.
Approved by the Town Council on 29 May 2014.
Signed: ……………………… Signed: …………………………… (Clerk of the Council) (Chairman of the Council)
7 Knowsley Town Council Annual Accounts 2013/14
BANK BALANCES AS AT 31 MARCH 2014
Balance as at 1 April 2013 £498,706.13
Receipts to 31 March 2014 £400,267.95
LESS Payments to 31 March 2014 £344,447.05
TOTAL £554,527.03
REPRESENTED BY THE FOLLOWING ACCOUNTS
Nat West Bank (Current) £30,227.03 Cambridge & Counties (Fixed Deposit) £65,000.00 Beverley Building Society (Business Postal) £39,000.00 Co-Operative (Fixed Deposit) £70,000.00 Santander (Business Bond) £70,000.00 United Trust (Fixed Deposit) £60,000.00 United Trust (Fixed Deposit) £70,000.00 United Trust (Fixed Deposit) £150,000.00 Petty Cash £300.00
TOTAL £554,527.03
Signed: ………………………… Signed: ……………………………. (Clerk of the Council) (Chairman of the Council)
7 Knowsley Town Council Annual Accounts 2013/14
SUMMARY INCOME AND EXPENDITURE ACCOUNT YEAR ENDED 31 MARCH 2014
INCOME
2012/13 (£) 2013/14 (£)
344,091.36 Administration 355,642.65 11,331.86 Knowsley Village Hall 10,393.46 60.00 Bob Whiley Community Centre 55.72 4,994.55 Sports Pavilion 3,000.18 289.07 Public Open Space 200.00
360,766.84 TOTAL INCOME 369,292.01
EXPENDITURE
2012/13 (£) 2013/14 (£)
146,263.76 Staff 159,232.81 53,198.66 Administration 58,746.91 77,671.80 Knowsley Village Hall 82,829.14 63,300.49 Bob Whiley Community Centre 8,179.57 5,014.57 Sports Pavilion 7,973.42 6,754.94 Public Open Space 6,062.14
352,204.22 TOTAL EXPENDITURE 323,023.99
GENERAL FUND
Balance as at 1 April 2013 £513,401.16
ADD Total Income (above) £369,292.01
LESS Total Expenditure (above) £323,023.99
BALANCE AS AT 31 MARCH 2014 £559,669.18
Signed: ………………………… Signed: …………………………… (Clerk of the Council) (Chairman of the Council)
7 Knowsley Town Council Annual Accounts 2013/14
SUPPORTING NOTES TO THE ACCOUNTING STATEMENT
NOTE 1: ASSETS HELD BY THE TOWN COUNCIL
During the year, the following items were added to the Asset Register:
Asset Cost (£)
Dyson Airblade Mk2 AB07 Hand Dryers x 4 2,576.00 Lec Refrigerator R5511W/S/B 140.00 Thomas Fattorini Mayoral Chain 9,905.00 Thomas Fattorini Civic Pendants Of Office x 10 3,515.00 Sven Conference Table 11,585.00 All Park Bicycle Rack 253.00 Solar Beech Tilt Tables x 4 1,056.00 Solar Chrome Chairs x 20 430.00
TOTAL 29,460.00
During the year the following assets were removed from the Asset Register (the amounts shown reflect the original purchase price of the asset):
Asset Cost (£)
Playground Spring Animal 435.00 Pool Table 00.00 Glasdon Bins x 2 287.00 Safe 00.00 Allsigns Banding Tool 90.00 Ardur Folding Ladder 55.00 Henry Vacuum Cleaner 100.00 Karcher Power Washer 83.00 Bosch Hedge Cutter 37.00 Bosch Easytrim Strimmer 18.00 Homelite Blower/Vacuum 83.00
TOTAL 1,188.00
At 31 March 2014, the Town Council held the following land and building assets that had a value in excess of £1,000:
Asset Cost (£)
Bob Whiley Community Centre 261,755.86 Sports Pavilion 444,996.63
TOTAL 706,752.49
7 Knowsley Town Council Annual Accounts 2013/14
The basis of the valuation of land and building assets is current insurance value. These assets are built upon leasehold land and it is considered that this will have a detrimental effect on the real value of the assets.
At 31 March 2014, the Town Council held the following civic regalia assets that had a value in excess of £1,000:
Asset Cost (£)
Fattorini Chairman’s Badge of Office 5,724.52 Fattorini Mayoral Chain 15,000.00 Fattorini Civic Pendants Of Office x 7 2,461.00
TOTAL 23,185.52
The basis of the valuation of the civic regalia asset is current insurance value.
At 31 March 2014, the Town Council held the following individual plant and equipment assets that had a value in excess of £1,000:
Asset Cost (£)
Karcher High Pressure Washer 1,396.00 20 foot Container 1,598.00 Multi Use Games Area 30,598.00 Honours Board 1,198.00 Canon GP405 Photocopier 4,347.00 Hewlett Packard DLP Projector 1,329.00 Dell Laptop Computer 1,124.00 Yamaha Stage Piano 1,432.00 BT Versatility Telephone System 1,250.00 Sven Conference Table 11,585.00
TOTAL 55,857.00
The basis of valuation of plant and equipment assets reflects original purchase price.
NOTE 2: BORROWING AND LENDING
At 31 March 2014, no loans to or from the Town Council were outstanding.
NOTE 3: DEBTS OUTSTANDING
At 31 March 2014, no debts were outstanding and due to the Town Council.
7 Knowsley Town Council Annual Accounts 2013/14
NOTE 4: CAPITAL RESERVE
The Capital Reserve represents the amount of money available within the Town Council’s fund balances that can only be used to finance capital expenditure. The movements in this Reserve during 2013/14 are detailed below:
Opening balance at 1 April 2013 00.00
Capital receipts during 2013/14 00.00
LESS amounts used to finance capital expenditure 00.00
BALANCE AS AT 31 MARCH 2014 00.00
NOTE 5: EARMARKED RESERVES
At 31 March 2014, the Town Council had earmarked no specific funds within the General Fund Balance.
NOTE 6: TENANCIES
At 31 March 2014, the Town Council held no tenancy agreements as either landlord or tenant.
NOTE 7: AGENCY WORK
During 2013/14, the Town Council undertook the following agency work on behalf of other authorities:
Commissioning Authority Nature of Work Amount (£)
Prescot Town Council Payroll Services 275.00
NOTE 8: PENSIONS
During 2013/14, the Town Council paid an employer’s contribution at 15.1% of employees’ pensionable pay to the Merseyside Pension Fund in order to provide adequately for known liabilities.
Approved by Mercer (Actuaries to the Merseyside Pension Fund).
7 Knowsley Town Council Annual Accounts 2013/14
NOTE 9: LEASES
At 31 March 2014, the Town Council held the following eight leases:
LESSOR PURPOSE ANNUAL LENGTH YEAR LEASE OF OF PAYABLE LEASE EXPIRY (£) (YEARS) Knowsley MBC Knowsley Village 9,750.00 25 2019 Hall
Knowsley MBC Public Open Space 0.25 90 2057 Longborough Road
Knowsley MBC Public Open Space 0.50 90 2057 Ross Close
Knowsley MBC Public Open Space 0.75 90 2062 Mill Lane
Knowsley MBC Public Open Space 4.75 90 2064 Pool Hey Playing Fields
Knowsley MBC Public Open Space 13.50 90 2064 Knowsley Lane (54 acres)
Knowsley MBC Public Open Space 3.50 99 2070 Syders Grove
Knowsley MBC Public Open Space 1.00 99 2070 Recreation Ground
NOTE 10: AVERTISING AND PUBLICITY
Section 5 of the Local Government Act 1986 requires the Town Council to disclose its expenditure on publicity and advertising. The following costs for advertising and publicity were incurred during the financial year 2013/14:
Recruitment Advertising £00.00
Annual Report £1,714.70
Other Advertising £00.00
TOTAL £1,714.70
7 Knowsley Town Council Annual Accounts 2013/14
NOTE 11: SECTION 137 EXPENDITURE
Section 137(4)(a) of the Local Government Act 1972 enabled the Town Council to spend £6.98 per head of population on the electoral roll (equivalent to £58,185.28 in 2013/14) in the financial year on activities or projects not specifically authorised by any other powers.
Expenditure was incurred during 2013/14 for the following purposes:
Recipient Nature of Payment Amount (£)
ACOL Football Club Grant 400.00
Care And Respite Support Services Donation 85.00
Hope Primary School PTA Grant 564.00
Knowsley MBC (Flower Show) Donation 300.00
Knowsley Village Art Group Grant 565.00
Platform Theatre CIC Grant 500.00
St. Jude’s Church, Stockbridge Village Grant 750.00
Stockbridge Village CS&HA Grant 750.00
Stockbridge Village Rambling Club Grant 750.00
TOTAL 4,664.00
NOTE 12: MEMBERS’ ALLOWANCES
The Chairman’s (i.e. the Mayor of the Town Council) Special Allowance was £1,000. The basic allowance for all elected members was £830. This was approved at the Annual General Meeting of the Town Council on 16 May 2013.
NOTE 13: CONTINGENT LIABILITIES
The Town Council’s Accounts for the financial year 2013/14 do not include provision for contingencies because they cannot yet be estimated or it is uncertain that they will occur.
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