Balance Sheet
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Statement of Accounts 2007/08 Devon County Council Statement of Accounts 2007/08 Explanatory Foreword .................................................... 2 The Pension Fund Accounts........................................ 77 Detailed Analysis of Income and Expenditure................ 3 Notes to the Pension Fund Accounts........................... 79 Statement of Accounting Policies................................... 8 1. In General ......................................................... 79 Statement of Responsibilities for the Statement of 2. General Accounting Principles .......................... 79 Accounts ...................................................................... 16 3. Statutory Statements......................................... 79 Approval of the Statement of Accounts ........................ 17 4. Employers’ Contributions .................................. 80 Annual Governance Statement .................................... 18 5. Administration Expenses and Related Party Independent Auditors' Report To The Members of Transactions ..................................................... 80 Devon County Council ................................................. 22 6. Cost of Investment ............................................ 80 Conclusion on arrangements for securing economy, efficiency and effectiveness in the use of resources .... 24 7. Foreign Currency Transactions......................... 81 Income and Expenditure Account ................................ 25 8. Market Value of Investments............................. 81 Statement of Movement on General Fund Balance ..... 26 9. Value Added Tax............................................... 81 Balance Sheet.............................................................. 27 10. Income Tax ....................................................... 81 Statement of Total Recognised Gains and Losses ...... 28 11. Investment Transactions ................................... 81 Cash Flow Statement................................................... 29 12. Actuarial Valuation ............................................ 81 Notes to the Accounts .................................................. 30 13. Employer transfer into the Devon Fund............. 83 1. Introduction........................................................ 30 14. Analysis of contributions receivable in 2. Adjustments to Prior Period............................... 30 2007/08 ............................................................. 83 3. Audit Fees ......................................................... 30 15. Investment Management Arrangements ........... 83 4. Capital and Fixed Assets................................... 30 16. Stock Lending ................................................... 84 5. Contingent Liabilities and Contingent Assets .... 40 17. Analysis of Investments .................................... 84 6. Creditors and Debtors ....................................... 42 18. Analysis of Managed Funds.............................. 84 7. Long Term Debt and Investments ..................... 43 19. Scheduled and Admitted Bodies ....................... 85 8. Exceptional and Extraordinary Items................. 43 20. Contingent Liabilities ......................................... 86 9. Financial Instruments ........................................ 43 21. Contingent Asset............................................... 86 10. Government Grants........................................... 50 22. Pension Fund Annual Report ............................ 86 11. Government Grants and Contributions – Glossary of Terms ....................................................... 88 Deferred and Unapplied .................................... 54 12. Income from services provided to other Local Authorities and Public Bodies............................ 54 13. Interest Payable and Similar Charges ............... 54 14. Interest and Investment Income ........................ 54 15. Landfill Allowances Trading Scheme................. 55 16. Lease and Contract Hire.................................... 55 17. Local Area Agreement....................................... 56 18. Long Term Debtors............................................ 57 19. Members’ Allowances........................................ 57 20. Movement in Cash and Other Financial Resources ......................................................... 58 21. Officer Remuneration ........................................ 59 22. Partnerships and Related Party Transactions ... 60 23. Pensions............................................................ 64 24. Post Balance Sheet Events ............................... 67 25. Provisions.......................................................... 67 26. Publicity Expenditure......................................... 68 27. Reserves ........................................................... 70 28. Schemes under the Transport Act 2000............ 73 29. Stock and Work In Progress.............................. 73 30. The General Fund ............................................. 74 31. Trading Accounts............................................... 75 32. Trust Funds ....................................................... 76 1 Devon County Council Statement of Accounts 2007/08 Explanatory Foreword Introduction Welcome to the 2007/08 financial statements for Devon County Council. This year the format of our Accounts has changed to comply with the new Statement of Recommended Practice (SORP) for 2007. Contained within you will find information regarding our financial performance for the year within the following statements:- • Income and Expenditure Account, analysing the Council’s day to day operations (page 25); • Statement of the Movement on the General Fund Balance, (page 26); • Balance Sheet, specifying the assets and liabilities of the Council as at 31 March 2008, excluding Pension and Trust Fund transactions (page 27): • Statement of Total Recognised Gains and Losses (page 28); • The Cash Flow Statement, summarising the inflows and outflows of cash arising from revenue and capital transactions (page 29); • The Core Accounting Statements are followed by specific notes to aid understanding and provide more detail (from page 30); • Devon Pension Fund Accounts, recording the Fund Account and Net Asset Statement for the Fund (page 77). • It is important to note that the accounts for the Devon Pension Fund are separate from the accounts of the County Council. Throughout the Statement, we have provided comparative figures for the previous financial year so they can be compared to 2007/08 performance. 2 Devon County Council Statement of Accounts 2007/08 Detailed Analysis of Income and Expenditure The Income and Expenditure Account is produced in line with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Best Value Accounting Code of Practice (BVACOP) and the 2007 Statement of Recommended Practice. This requires a standard analysis of service expenditure, to be shown at total cost, which includes charges for capital asset utilisation, apportionments of central costs, expenditure from funds and reserves and appropriate provision for pension costs. Gross expenditure totalled £1,193.577 million and Chart 1 highlights spending for each service. Chart 1: Gross Expenditure Education Services Highways, Roads £ 702.331m and Transport £ 99.481m Cultural, Environmental & Planning Services £ 61.663m Court Services Social Services £ 1.105m Other Services Housing Services £ 251.611m £ 55.030m £ 22.356m Expenditure is funded from a number of different sources, some local to Devon and some from Government. Chart 2, below, highlights sources of revenue income for the County Council during the year. Total gross income of £1, 081.217 million was received during the year, made up of £506.268 million in specific grants and £150.476million from fees and charges. General and Revenue Support Grant from Government was £28.048 million. The Council’s share of the National Non-Domestic Rate Pool was £105.307 million and income from Council Tax amounted to £291.118 million. Chart 2: Gross Income Specific Government Grants £ 506.268m General & Revenue Support Grants General Council NNDR £ 28.048m Fees and Charges Tax £ 150.476m £ 105.307m £ 291.118m Whilst the published Income and Expenditure Account is based on the BVACOP analysis, the Council manages the revenue budget according to Directorate management responsibilities, as shown below. Management of the Budget: Revenue Spending Revenue expenditure provides the day to day services of the County Council. Income arises from charges for such services where appropriate and contributions towards their costs. Monitoring of income and expenditure takes place throughout the year. The financial performance of Directorates, relative to budgets approved by Members is as follows: 3 Devon County Council Statement of Accounts 2007/08 Children and Young People: In accordance with the Scheme of Funding schools required by the Department for Children, Schools and Families, schools will carry forward £11.884 million or 3.3% of their budgets. This figure is higher than the carry forward from the 2006/07 financial year (£10.910 million). There were some pressures on the non-schools budget during the year There were particularly acute in relation to home to school transport, fostering and residential placements. Carry forwards into 2008/09 include the statutory carry forward for schools, carry forward for Standards Fund initiatives and several smaller carry forwards for Youth Offending Teams,