STATEMENT OF ACCOUNTS 2017/18 (AUDITED) CONTENTS Narrative report………..………...…………………………………………..………………….……………………………….2 Auditors' report……………………………….…………………………………………………………..…………………………….13 Statement of responsibilities for the statement of accounts…………..………...………………………………………………….16 Core financial statements: Balance sheet …………..………………………...…………..……………………………………………………17 Comprehensive income and expenditure statement………………………………….……………………………………..18 Movement in reserves statement …………………………………………………………………………………….………………………………19 Cash flow statement………………………………………………………………..………………………………20 Notes to the core financial statements………………………………..………………………………………………………………………21 Supplementary financial statements and explanatory notes: Housing revenue account…………………………………………….…………………………………………………..104 Collection fund……………………………………………………...………………………………………………..115 Pension fund accounts……………………………...………………………………………………………………………………..117 Glossary of terms………………………………..…………………………………………………………………………………148 Abbreviations……………………………………..………………………………………………………………………………..168 Index…………………………………………………...………………………………………………………………169…………….. Copies of this and previous years’ accounts are available for viewing, along with other information on the authority’s services, on our website at www.eastriding.gov.uk or from East Riding of Yorkshire Council, County Hall, Beverley, East Riding of Yorkshire, HU17 9BA. East Riding of Yorkshire Council 1 Statement of Accounts 2017/18 NARRATIVE REPORT 1. ABOUT THE COUNCIL East Riding of Yorkshire Council covers approximately 930 square miles, making it one of the largest unitary authorities in the country. It is generally an affluent area and is ranked amongst the least socially deprived area in England but it also faces significant challenges, some of which include; • pockets of deprivation in places such as Bridlington, Goole and south-east Holderness, • a predominately rural, with over half the population living in dispersed rural communities. • an increasingly older population due to migration by retired people, particularly to coastal resorts. • a 48 kilometre coastline of soft glacial till (clay, pebbles and sand), particularly vulnerable to coastal erosion. The coastline is eroding at an average rate of 1.5-2.5 metres per year, with some locations which are not defended experiencing individual cliff losses of 20 metres or more. The level of flood risk is expected to increase in the future due to climate change, with greater quantities of rainfall and rises in sea level. • many parts of the East Riding are susceptible to flooding, and the impacts can be wide ranging and severe. The East Riding is ranked within the top ten areas in the country with the highest number of homes in areas at risk of river and tidal flooding. The risk of surface water flooding is also significant in many parts of the East Riding. • significant funding uncertainty due to a combination of continued reductions in Government funding, planned changes to the business rates retention system and the associated fair funding review, rising cost pressures - the most significant of which relate to adult social care, and the need to deliver £40.3m of budget savings over the next four years. OUR VALUES In these testing times, it is important that we do not lose sight of our values which drive the way we do things and shape our services. It is the responsibility of all our Members and staff to uphold the values of our organisation: • We respect differences and put our customers first • We protect the vulnerable and promote independence • We communicate well • We value our employees • We work together • We find value for money ways to work OUR CORPORATE PRIORITIES Despite the challenging financial climate, we continue to have high ambitions for the area and its significant opportunities and potential; we also continue to strive to remain one of the top councils in the country. • Maximising our potential - working with others to support sustainable economic growth and strong communities, ensuring the East Riding is a great place to invest in, live, work and visit • Valuing our environment – responding to climate change, developing our infrastructure and safeguarding our heritage • Supporting vulnerable people, reducing inequalities – supporting in times of need, protecting from harm and improving the quality of life • Promoting health, wellbeing and independence – helping people to stay healthy, strong and fit for the future East Riding of Yorkshire Council 2 Statement of Accounts 2017/18 NARRATIVE REPORT • Reducing costs, raising performance – developing our workforce and working with partners to provide excellent service, effective governance and value for money COMMUNITY PLAN The Council is also a key partner in the development of the East Riding Community Plan 2016-2021. This plan for the area builds on previous community plans, and reflects the continued changes and challenges affecting the East Riding. Partner organisations, through the new East Riding 2020 Board and its reference groups, have been closely involved in its development to ensure that it recognises the issues faced by both residents and partner organisations operating in the area. The Plan provides a sense of ‘place’, describing, for example, the key geographical and socio-economic aspects of the East Riding and aligning itself to key documents including the East Riding Local Plan. The Community Plan set out a range of agreed priorities: • Children and young people are happy, healthy, confident, safe and resilient, to reach their full potential • Older people enjoy a healthy, independent lifestyle • Communities are healthy, thriving, prosperous and safe • Regeneration transforms deprived areas and reduces health and other inequalities • The built and natural environment is protected through sustainable development and economic growth. East Riding of Yorkshire Council 3 Statement of Accounts 2017/18 NARRATIVE REPORT The Community Plan also includes the partners’ commitment to a shared direction of travel around how they will work together to transform their organisations (through, for example, use of technology, joint use of assets and more efficient working practices), in order to collectively respond to the financial and demographic challenges. Details of the key actions the Council planned to take to deliver the corporate priorities can be found in the Council’s Business Plan at www.eastriding.gov.uk . Key performance outcomes are summarised in section 2 below. 2. OPERATIONAL PERFORMANCE We manage our performance very closely through a comprehensive performance management framework which operates across the council. This ensures that Members and council officers are able to make informed decisions that will drive service improvement. Key achievements in 2017/18 against the Council’s corporate priorities include: MAXIMISING OUR POTENTIAL • Ofsted have recognised the continued upward trend of good and outstanding schools in the East Riding. 86% of primary schools and 68% secondary schools have now been assessed as good or outstanding (up from 54% and 33% respectively in 2012). • A £9m Local Growth Fund has been secured to help deliver key economic growth related infrastructure schemes - £6m to ABP for the Paull Enterprise Zone site and £3m for Goole Intermodal Terminal Consortium, which must be committed and spent by March 2020. • The £25.7m Green Port Growth programme, now in its sixth year, is over-achieving on its key targets and has created over 1,300 new jobs in Hull and the East Riding. • A programme of larger transport schemes to improve connectivity and accommodate future planned development has been identified through the Local Plan and Local Transport Plan. Many of these have now been completed (such as the A1079/Holme Road roundabout at Market Weighton) or are on site (Bridlington Integrated Transport Plan phase 2). • Building on the success of the initial phase 1 campaign, superfast broadband take-up is continuing with over 48,000 residents benefitting. VALUING OUR ENVIRONMENT • The Council has continued its success in securing significant additional funding for transport schemes including: - £2.98m for an improvement scheme at the A164/Great Gutter Lane/Riplingham Road junction; - £1.992m for essential repairs/maintenance at Tickton Bridge, which carries the A1035 over the River Hull; - £0.7m towards the new £1.4m ‘Get Active East Riding’ project to support and encourage sustainable transport in our four principle towns; - Continued replacement of street lighting, over 35,000 luminaires replaced to date against the target of 38,000 and 9,800 columns replaced. This has seen a 39% reduction in the use of energy since 2010/11. - The Council has one of the largest flood and coastal risk management capital programmes of an local authority in England. Schemes range from minor culvert improvements to some of the most complex surface water flood alleviation schemes in the country. Through investment in flood alleviation schemes, the Council has reduced flooding risk for 9,000 properties and continued investment will increase this to 21,000 properties by 2021. - According to the latest Government figures, East Riding of Yorkshire Council recycles more household waste than any other council in England. The latest validated figures show the Council was able to recycle or compost 65.4% of all household rubbish. The national average for England was 45.1%. - The Council's Annual Environmental Statement received ISO14001:2015 certification, a globally recognised standard achieved by organisations