Appendix C(I)

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Appendix C(I) Thriving communities in balance with the natural environment Final Accounts 2018 - 2019 www.dorsetforyou.gov.uk Statement of Accounts 2018/19 Contents Narrative Report Page Page 1. Introduction 1 2. Corporate Strategy 2 3. Council performance 2-4 4. Risk and performance management 4 - 5 5. Financial performance 5-11 6. Economy, efficiency and effectiveness 12 7. Local government reorganisation 12 Statement of Responsibilities 13 Audit Opinion Annual Governance Statement 15-23 12 12 12 Statement of Accounts Section 1- Core Financial Statements Introduction 24 Comprehensive Income and Expenditure Statement 25 Movement in Reserves Statement 26 Balance Sheet 27-28 Cash Flow Statement 29 Section 2 - Notes to the Core Financial Statements General Notes Note 1 Accounting Standards issued but not yet 30 adopted Note 2 Accounting Policies 30 - 43 General Principles 30 Policy 1 Accounting Estimates 31 Policy 2 Accounting Policy Changes 31 Policy 3 Accruals of Income and Expenditure 31 Policy 4 Business Rates Appeals 31 Policy 5 Cash and Cash Equivalents 32 Policy 6 Contingent Assets and Liabilities 32 Policy 7 Employee Benefits 33 Policy 8 Events After the Balance Sheet Date 34 Policy 9 Financial Instruments 34 Policy 10 Financial Loans 35 Policy 11 Foreign Currency Transactions 35 Policy 12 Government Grants and Contributions 36 Policy 13 Heritage Assets 36 Policy 14 Intangible Assets 36 Contents continued Page Page Policy 15 Inventories and Long Term Contracts 37 Policy 16 Investment Property 37 Policy 17 Leases 37 Policy 18 Non-Current Assets Charges to Revenue 38 Policy 19 Overheads and Support Service Charges 38 Policy 20 Prior Period Adjustments 38 Policy 21 Prior Period Errors 38 Policy 22 Property Plant and Equipment 39-42 Policy 23 Provisions 42 Policy 24 Reserves and Balances 42 Policy 25 Revenue Expenditure Funded from Capital 43 Under Statute Policy 26 Trust Funds 43 Policy 27 VAT 43 Note 3 Critical Judgements in Applying Accounting 43 Policies Note 4 Material Items of Income and Expense 44 Note 5 Assumptions about the Future and Other 44-46 Major Sources of Estimation Uncertainty Note 6 Contingent Liabilities 47 Note 7 Related Parties 47-48 Note 8 Events after the Balance Sheet Date 49-50 Comprehensive Income and Expenditure Statement Notes Note 9 Officers’ Remuneration 52 Note 10 Councillors’ Allowances 53 Note 11 Exit Packages 53 Note 12 External Audit Costs 54 Note 13 Specific Revenue Grant Income 54 Note 14 Leases 55 Note 15 Impairment Losses 56 Note 16 Analysis of Income and Expenditure 57-59 Note 17 Other Operating Expenditure 60 Note 18 Financing and Investment Income & Expenditure 60-61 Note 19 Taxation and Non Specific Grant Incomes 61-62 Note 20 Capital Grants & Contributions 63 Movement in Reserves Statement Notes Note 21 Note to the Expenditure and Funding Analysis: 64-68 Adjustments between Funding and Accounting Basis. Note 22 Revenue Expenditure Funded from Capital 69 Under Statute Balance Sheet Notes Note 23 Property, Plant and Equipment 70-74 Note 24 Construction Contracts 74 Contents continued Page Page Note 25 Investment Properties 74 Note 26 Intangible Assets 74 Note 27 Financial Instruments 74-79 Note 28 Disclosure of Nature & Extent of Risks Arising 79-82 from Financial Instruments Note 29 Debtors – Long-term 82 Note 30 Investments – Short-term 82 Note 31 Inventories 82 Note 32 Assets Held-for-sale 83 Note 33 Debtors – Short-term 83 Note 34 Cash and Cash Equivalents 84 Note 35 Creditors – Short-term 84 Note 36 Provisions 85 Note 37 Long-term Liabilities 85 Note 38 Defined Benefit Pension Scheme 86-91 Note 39 Usable Reserves 92-97 Note 40 Unusable Reserves 98-102 Note 41 Capital Expenditure and Capital Financing 102-103 Cash Flow Statement Notes Note 42 Net Cash Flow from Operating Activities 105 Note 43 Cash Flow Operating Activities - Interest 106 Note 44 Net Cash Flows from Investing and Financing 106 Activities Section 3 – Collection Fund Collection Fund 108-120 Business Rates (National Non-Domestic Rates) Notes 108-114 Note 1 Business Rates Income and Expenditure 108 Statement Note 2 Business Rates Scheme 110 Note 3 Renewable Energy Sites 111 Note 4 Enterprise Zone – Dorset Innovation Park 111 Note 5 Transitional Protection Payments / Premiums 111 Note 6 Cost of Collection 112 Note 7 Impairment Allowance 112 Note 8 Backdated Appeals Provision 112 Note 9 Payment Shares 113 Note 10 Surplus / (Deficit) 113 Note 11 Total Expenditure 114 Note 12 Deficit for the Year 114 Council Tax Notes 115-120 Note 1 Council Tax Income and Expenditure Statement 115 Note 2 Council Tax Background 116 Note 3 Council Tax Support 117 Note 4 Council Tax Charges 117 Contents continued Page Page Note 5 Impairment Allowance 117 Note 6 Payment of Demands (Precepts) 117 Note 7 Town and Parish Local Precepts 118 Note 8 Surplus / (Deficit) Adjusted for in Year 119 Note 9 Total Expenditure 119 Note 10 Surplus / (Deficit) for the Year 120 Section 4 – Glossary of Terms 122-128 Purbeck District Council Statement of Accounts 2018/19 Narrative Report Statement of Accounts 2018/19 – Narrative Report Narrative Report 1. Introduction The Statement of Accounts sets out the Council’s financial performance for the year 2018/19. Finance is one of the key resources used in delivering the Council’s ambition for the district which is articulated in the Corporate Strategy. It is therefore important that the Council’s financial performance is viewed in the context of the Council’s overall performance in delivering its corporate objectives. Key to this is the Council’s risk management and performance monitoring regime as well as its financial sustainability and resilience, to ensure it could deliver its longer-term vision. With this in mind the Statement of Accounts is structured as follows: Narrative Report on the Council’s Performance The narrative report provides an explanation of the most significant aspects of the Council’s overall performance, both financial and non-financial; a brief explanation of the core financial statements; and the year-end financial position. Responsibilities for the Statement of Accounts This sets out the responsibilities of the District Council and the Chief Finance Officer in the preparation of the Statement of Accounts. Annual Governance Statement The Annual Governance Statement is required by the Accounts and Audit Regulations and explains how the Council has complied with its Local Code of Corporate Governance and reports on the outcome of the annual review of the effectiveness of the system of internal control. The Annual Governance Statement must be considered alongside the Financial Statements for the year because it provides assurance concerning the system of internal control, which affects the accuracy and completeness of accounting entries. Monitoring of performance against the action plan is reported to the Audit and Governance Committee. Statement of Accounts The Statement of Accounts sets out the Council’s financial performance for the year and shows comparisons against the previous year. The financial statements are prepared in accordance with the Code of Practice on Local Authority Accounting in the UK. During 2018/19 there were no changes in statutory functions to take into account. The Statement comprises the following sections: Core Financial Statements Notes to the Core Financial Statements Collection Fund Glossary of Terms Page 1 Statement of Accounts 2018/19 – Narrative Report 2. Corporate strategy The Council’s five-year Corporate Strategy focuses on its aspirations for its local communities. It also reflects the economic background to the development and delivery of the Corporate Strategy. The Corporate Strategy was reviewed during 2016/17, confirming the following corporate priorities: Protecting and enhancing the local environment; Meeting the housing needs of local people; Improving the local economy and infrastructure; Enhancing local communities and involvement; Being an efficient and effective Council. Copies of the Corporate Strategy 2016/21 can be obtained from the Council’s offices at Westport House, Wareham. Since the review of the Corporate Strategy was completed, the Government has agreed to the reorganisation of local government in Dorset. The Council will form part of a new unitary Dorset Council, with the areas covered by East Dorset, North Dorset, West Dorset and Weymouth and Portland Borough Council. The Corporate Strategy remained the Council’s principal focus until reorganisation on 1 April 2019. 3. Council performance The Council monitors its performance against the above corporate priorities on a six-monthly basis and reports this to the Audit and Governance Committee, through its performance bulletin, which can be found on the Council’s website. The performance bulletin is also sent to all Councillors for information. The performance for the full year against each of the corporate priorities has been assessed as good, based on a traffic light system. Areas of particular interest are highlighted below. The protection of the natural environment was helped by the adoption of the Local Plan towards the end of 2012, which resulted in a large increase in green belt. In 2013/14, the Council started working on a partial review of the Local Plan, with the aim of completing this by the end of 2017. During 2016/17 there was an acceptance by the Council that decisions to widen the scope of the Partial Review resulted in it being a full review of the Local Plan. The Council has recently submitted its draft Local Plan to the Planning Inspectorate and an examination on its proposals is expected in the summer of 2019. The draft Local Plan includes housing development in line with the minimum housing target using the Government’s methodology, whilst continuing to protect the local environment. The Council is committed to maintaining what is unique about the district’s natural and historic environment. Consequently, character appraisals of all of the district’s conservation areas are up to date.
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