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Statement of Accounts 2008

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Statement of Accounts 2008 Suffolk County Council Statement of Accounts 2008 - 2009 We will on request produce this document, or particular parts of it, into larger print or other languages and formats, in order that everyone can use and comment upon its content. Suffolk County Council Statement of Accounts for the year ended 31 March 2009 Contents Page i Annual Governance Statement..……………………………………………. Auditor’s Certificate…………………………………………………………… xvii Statement of Responsibilities for the Statement of Accounts…………… 1 Explanatory Foreword……………………………………………………….. 2 Income and Expenditure Account …………………………………………. 14 Statement of Movement on the General Fund Balance…………………. 16 Statement of Total Recognised Gains and Losses………………………. 18 Balance Sheet………………………………………………………………… 19 Cash-flow Statement………………………………………………………… 20 Notes to the Core Statements………………………………………………. 21 Group Accounts Introduction……………………………………………...... 59 Group Accounts Income and Expenditure Account………………………. 60 Group Accounts Reconciliation of Single Entity Deficit to Group Deficit.. 62 Group Accounts Statement of Recognised Gains and Losses………….. 63 Group Accounts Balance Sheet…………………………………………….. 64 Group Accounts Cash-flow statement……………………………………… 66 Group Accounts Notes to the Group Accounts……………………………. 67 Accounting Policies…………………………………………………………… 68 Councillors’ Allowances……………………………………………………… 76 Pension Accounts…………………………………………………………….. 78 Fire Pension Scheme………………………………………………………… 93 Glossary……………………………………………………………………….. 94 Annual Governance Statement Scope of responsibility 1. Suffolk County 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. The County 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 and its services are delivered, having regard to a combination of economy, efficiency and effectiveness. 2. In discharging this overall responsibility, the 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. 3. The Council has approved and adopted a code of corporate governance, which is consistent with the principles of the CIPFA (the Chartered Institute of Public Finance and Accountancy) / SOLACE (the Society of Local Authority Chief Executives and Senior Managers) Framework ‘Delivering Good Governance in Local Government’. 4. A copy of the code can be obtained from the Head of Audit, Governance and Customer Rights, Endeavour House, 8 Russell Road, Ipswich, IP1 2BX. This statement explains how the 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. 5. This statement also covers the transactions and processes undertaken by Customer Service Direct (CSD) on behalf of the County Council. 6. CSD is a joint venture company that was formed as a result of a ten-year partnership between the County Council, Mid Suffolk District Council and British Telecom. CSD provides support services including Finance, Human Resources and Information and Communication Technology together with Public Access Services. CSD has a contractual commitment to provide the County Council with a defined level of service. CSD supports the County Council’s internal control mechanisms and in some cases is responsible for enforcing them. 7. As a separate entity, CSD has its own internal governance arrangements, which are not covered by the County Council’s system of internal control. However, these arrangements are subject to testing through the County Council’s Internal and External Audit processes. The purpose of the governance framework 8. Governance is about how the Council ensures that it is doing the right things, in the right way, for the right people, in a timely, inclusive, open, honest and accountable manner. 9. The governance framework comprises the systems and processes and cultures and values, by which the Council is directed and controlled and through which it is accountable to, engages with and, where appropriate, leads communities. It enables the Council to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of high- quality, cost effective services, which meet the needs of those using them. 10. 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 the 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. 11. The Council’s governance framework has been in place for the year ended 31 March 2009 and up to the date of approval of the statement of accounts. Suffolk County Council i Annual Governance Statement Annual Governance Statement Systems and processes that comprise the County Council’s governance arrangements 12. The core governance principles of the Council are as follows: a) focusing on the purpose of the Council and on outcomes for the community and creating and implementing a vision for the local area; b) members and officers working together to achieve a common purpose with clearly defined functions and roles; c) promoting values for the Council and demonstrating the values of good governance through upholding high standards of conduct and behaviour; d) taking informed and transparent decisions which are subject to effective scrutiny and managing risk; e) developing the capacity and capability of members and officers to be effective; and f) engaging with local people and other stakeholders to ensure robust public accountability. 13. The key elements of the systems and processes that compromise the Council’s governance arrangements are discussed under these principles in Annex A. Suffolk County Council ii Annual Governance Statement Annual Governance Statement Review of effectiveness 14. The County Council has responsibility for conducting, at least annually, a review of the effectiveness of its governance framework including the system of internal control. 15. This review of effectiveness is undertaken in line with CIPFA guidance ‘The Annual Governance Statement, Rough Guide for Practitioners’ as shown in the following diagram: Review of Annual Governance Statement and Assurance Gathering Process: Establish principal Apply the Six Objective 1 statutory obligations and CIPFA/SOLACE Core organisational objectives Principles Objective 2 Identify principal risks to achievement of objectives Objective 3 Identify and evaluate key controls to manage principal risks Objective 4 Obtain assurances on effectiveness of key controls Objective 5 Evaluate assurances and identify gaps in control/assurances Action plan to address weaknesses and ensure Objective 6 continuous improvement of Corporate Governance Objective 7 Annual Governance Statement Objective 8 Report to Audit Committee and Statement of Accounts Sub-Committee 16. Evidence was collected against each objective of the above process and was informed by the work of the managers within the authority who have responsibility for the development and maintenance of the governance environment, the Head of Audit Services annual report, and also by comments made by the external auditors and other review agencies and inspectorates. The evidence collected was then reviewed by Audit Services. Suffolk County Council iii Annual Governance Statement Annual Governance Statement Audit Commission Annual Audit and Inspection Letter 2007/08 17. The Audit Commission’s Annual Audit and Inspection Letter 2007/08, issued in March 2009 reported that the County Council continues to perform well in the area of internal control. During 2007/08 the Council's business continuity plan was fully implemented and embedded within the overall internal control arrangements. Elements of the plan were subject to testing by the Council, with the findings being used to inform further development of the plan. This enhancement in the Council's arrangements resulted in the score for this aspect of internal control improving from level two in 2006/07 to level three within the current assessment, although the overall theme score remained at level three. Use of Resources Assessment 18. A large number of activities that make up a successful Internal Control Environment (including the areas highlighted above) are tested each year by the Audit Commission in coming to their judgement on the council’s ‘Use of Resources’ assessment. The table below sets out the scores (out of 4) for 2007/08 compared to 2006/07. Theme 2007 Assessment 2008 Assessment Financial Reporting 2 3 Financial Management 3 3 Financial Standing 3 3 Internal Control 3 3 Value for Money 3 3 Overall assessment of the Audit Commission 3 3 (Note: 1 = inadequate performance, 2 = adequate performance,
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