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Statement of Accounts for the Year Ended 31 March 2018

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Statement of Accounts for the Year Ended 31 March 2018 Statement of Accounts For the year ended 31 March 2018 South Bucks District Council 1 Statement of Accounts 2017/18 Index Page Narrative Report Narrative Report 3 Statement of Accounts Statement of Responsibilities for the Statement of Accounts 10 Comprehensive Income and Expenditure Statement 11 Movement in Reserves Statement 12 Balance Sheet 13 Cash Flow Statement 14 Notes to the Accounts 15 Collection Fund 64 Independent Auditor’s Report Independent Auditor’s Report 66 Annual Governance Statement Annual Governance Statement 69 Glossary of Terms Glossary of Terms 72 South Bucks District Council 2 Statement of Accounts 2017/18 Narrative Report 1. About South Bucks District Council South Bucks District Council serves the urban areas of Burnham, Beaconsfield, Gerrards Cross, Denham and Iver, as well as a number of outlying villages. The overall population of the district is approximately 69,500. It covers an area of 141 square kilometres. 87% of the District is green belt, and large parts of the District are designated as an Area of Outstanding Natural Beauty. The District Council was established on 1 April 1974. There are 28 councillors. The whole Council was elected in May 2015 for four years. The Conservative Group holds 27 seats and controls the Council. There is 1 independent member. The Authority provides a wide range of services to the people living, working and studying in the area. It operates a Cabinet system with the following responsibilities: Council Leader - Strategy and direction of the Council, political leadership, public profile and regional representation. Customer Services and Business Support - Housing Benefits, Council Tax and Non-Domestic Rate collection, Customer Services, and ICT. Environment - Refuse and waste, recycling, street cleaning damaged and threatened land, cemeteries, and Council car parks. Healthy Communities - Health and wellbeing, housing services, homelessness, environmental health, sport and leisure, community development and grants, youth matters, partnership working, community safety, and crime reduction. Planning and Economic Development - Development management, building control, planning enforcement, trees and conservation, economic development, planning policy and the Local Development Framework. Resources – Financial strategy, asset and investment management, legal, democratic services, land charges, audit and finance. Further information about the Authority can be obtained from the following website address: www.southbucks.gov.uk 2. Format of Accounts The financial statements are prepared on an accruals basis and follow best practice recommended by the Code of Practice on Local Authority Accounting. The various statements include, where relevant, comparative figures relating to the previous financial year and supporting notes. The statements summarise the overall financial position of the Authority and include the following: Comprehensive Income and Expenditure Statement - This statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices and shows how that cost has been financed from Council Tax payers, Business Rate income and Government grants. Movement in Reserves Statement - This statement shows the movement in the year of the different reserves held by the Authority, analysed into ‘usable reserves’ (ie those that can be applied to fund expenditure or reduce local taxation) and other reserves. Balance Sheet – This statement shows the assets and liabilities of all the activities of the Authority and the balances and reserves at the Authority’s disposal. South Bucks District Council 3 Statement of Accounts 2017/18 Narrative Report Cash Flow Statement – This statement shows the inflows and outflows of cash arising from transactions with third parties for revenue and capital purposes. Collection Fund – This statement reflects a statutory requirement to maintain a separate Collection Fund, which shows the transactions of the Authority as a billing authority in relation to council tax and non-domestic rates, and the way in which the total amount collected has been distributed to the precepting authorities and central Government. 3. Joint Working Arrangements with Chiltern District Council On 19th January 2012 Chiltern District Council and South Bucks District Council signed an Inter Authority Agreement to establish Joint Arrangements to work together to share a Joint Chief Executive and a Joint Senior Management Team and then to examine the opportunities for further savings by collaboration and the joining together of services, assets, officer posts and officer teams. The authorities have a shared Chief Executive and Directors, as well as joint Heads of Service. The two councils have also implemented opportunities for further savings by collaboration and the joining together of services, assets, officer posts and officer teams. However, the authorities remain sovereign independent bodies, and keep their separate identities, retain their own Councillors and budgets, and set their own council taxes. 4. Financial Context The Council continues to be in a period of challenge for local authorities, as it is faced with having to maintain and improve key services in a time of reducing resources. The Authority is committed to working with its communities to try and shape the development of the local areas to their needs and aspirations, whilst at the same time recognising the importance of maintaining a low council tax, and attempting to minimise the impact of reduced resources. On 1st March 2017 the Council set its budget for 2017/18 to take account of the continuing material reduction in funding to the Authority as shown in the following table. 2014/15 2015/16 2016/17 2017/18 £’000 £’000 £’000 £’000 Business Rates Income - Baseline Need 985 1,004 1,012 1,032 Revenue Support Grant 1,161 871 436 57 Settlement Funding Assessment 2,146 1,875 1,448 1,089 Year on Year Change (£k) -271 -427 -359 Year on Year Change (%) -13% -23% -25% The 2017/18 budget incorporated over £600,000 of savings, budget reductions and increased income. The Council’s Medium Term Financial Forecast anticipates further savings being required to balance the budget over the next few years. South Bucks District Council 4 Statement of Accounts 2017/18 Narrative Report 5. Financial Outturn Revenue Income and Expenditure The table below summarises the Authority’s revenue income and expenditure and compares the budget for the year with the actual expenditure. It also shows how the overall Authority expenditure was funded by income from Council Tax payers, business rate income, and Government Grants. The numbers here differ to the figures shown on the Comprehensive Income and Expenditure Statement as some items of expenditure, such as depreciation, are presented differently. Budget Outturn (Under)/ Over Spend £’000 £’000 £’000 Leader 8 13 5 Environment 2,032 1,970 -62 Healthy Communities 1,740 1,969 229 Customer Services and Business Support 523 666 143 Resources 1,757 1,969 212 Planning and Economic Development 1,890 1,528 -362 Net Cost of Services 7,950 8,115 165 Interest & Investment Income -200 -163 37 Notional Interest Payable 211 211 - Borrowing Costs - Interest 133 - -133 Transfer from LDD Reserve -268 -163 105 Transfer from Revenue Reserves -5 - 5 S106 Commuted Sums -38 154 192 Transfer from S106 Reserve - -154 -154 Budget Requirement 7,783 8,000 217 Council Tax Payers -4,967 -4,967 - Non-Domestic Rates (NDR) -571 -2,265 -1,694 Non-Domestic Rates (NDR) - General Grants -462 -683 -221 Revenue Support Grant (RSG) -57 -57 - General Grants – Transition Grants -80 -80 - General Grants - New Homes Bonus -1,103 -1,105 -2 General Grants - Other -21 -14 7 Collection Fund Council Tax Deficit -22 -22 - Collection Fund NDR Deficit (From NNDR1) -500 1,013 1,513 Levy Payable on Business Rates Growth - 719 719 Net (Surplus)/Deficit for the Year - 539 539 The following table then reconciles the above figures to the figures in the Statement of Accounts (see note 6 for more details). (Surplus)/Deficit on Provision of Services (From Comprehensive Income and 2,493 Expenditure Statement) Adjustments between Accounting Basis and Funding Basis -1,450 Net Transfer to Earmarked Reserves -504 (Increase)/Decrease in General Fund Reserve 539 South Bucks District Council 5 Statement of Accounts 2017/18 Narrative Report Movement in Reserves The Movement in Reserves Statement shows the movement in the year of the different reserves held by the Authority. The key movements in the Authority’s usable reserves are as follows. The General Fund Balance decreased by £539,000 to £2,400,000. This is mainly due to a transfer to Earmarked Reserves of £504,000. Earmarked reserves decreased by £1,387,000 to £5,241,000. This is mainly due to use of reserves to finance new capital expenditure. The Authority’s Capital Receipts Reserve decreased by £497,000 to £359,000. This is because receipts were used to fund the capital investment programme. The key movements in the Authority’s unusable reserves are as follows. The Pensions deficit decreased by £1,255,000. The accumulated estimated pension fund deficit now stands at £30,229,000. The Revaluation Reserve balance decreased by £791,000 due to revaluation of the Authority’s Property, Plant and Equipment. Capital Expenditure Capital expenditure is all expenditure on the acquisition, creation, or enhancement of Property, Plant and Equipment assets, which yield benefits to the Authority and the services it provides for a period of more
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