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Draft Statement of Accounts 2019/20 Subject to Audit

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Draft Statement of Accounts 2019/20 Subject to Audit Draft Statement of Accounts 2019/20 Subject to Audit Contents: Page Narrative Report 1-17 Statement of Responsibilities 18 Main Accounting Statements 19 • Comprehensive Income and Expenditure Statement 20-21 • Movement in Reserves Statement • Balance Sheet 22 • Cash Flow Statement 23 Index of Notes to the Main Accounting Statements 24 Notes to the Main Accounting Statements 25-81 Supplementary Statements • Housing Revenue Account and Notes 82-88 • Collection Fund and Notes 89-92 Independent Auditor’s Report to Members 93 Cost Centres by Division 94 Glossary 95-101 Narrative Report 1. Introduction The Statement of Accounts summarises the authority’s transactions for the 2019/20 financial year and its position at the year-end of 31 March 2020. Figures for the previous year are included to assist in the interpretation of the accounting statements. The purpose of the Statement of Accounts is to give readers clear information about the authority’s finances. It shows the cost of the authority’s services in the year, where the money came from to pay for its services and what the assets and liabilities were at the year-end. The Narrative Report aims to provide a concise and understandable guide for readers of the accounts of the most significant aspects of the authority’s financial performance, year-end position and economy, efficiency and effectiveness in its use of resources over the year. Throughout the Narrative Report the authority outlines the value created to the community. The value added is considered to be the services delivered and the achievement and outcomes of the corporate priorities. The financial statements are prepared and presented based on material grounds taking into account the specific materiality for the authority as used by our Appointed Auditors. The authority uses rounding to the nearest thousand pounds in the financial statements; some notes and narrative are presented in millions of pounds as an aid to readability. 2. About the Authority Barrow-in-Furness Borough Council (Barrow Borough Council) is a North West non-metropolitan local government district situated in south Cumbria at the tip of the Furness peninsula, close to the Lake District; it is bordered by Morecambe Bay, the Duddon Estuary and the Irish Sea. It is the smallest geographic district in the County at just under 78 km2 but is the most densely populated with 886 people per km2 at the 2011 Census. Walney Island lies to the West of Barrow, and is separated from Barrow by the narrow Jubilee Bridge. Walney Island has two nature reserves, the 130 hectare South Walney Nature Reserve and 650 hectare North Walney Nature Reserve. Both nature reserves have national designations, as do the Duddon Estuary and Sandscale Haws to the north of the Borough. The Borough also includes 270 listed buildings, including 8 Grade I buildings of exceptional interest, including the medieval Furness Abbey and Piel Castle. Barrow is the most deprived district in the County and the 29th most deprived local authority district in England; this is based on income, employment, health, education, housing, crime and living environment. The dwellings in the Borough are primarily in council tax band A at 59%, with 30% in bands B and C, and 11% in bands D to F. Urban regeneration has been a major project in Barrow since the 1980s with developments on various former industrial sites in the centre of Barrow, including the dry dock, the Barrow Jute Works and Barrow Steel Works. Barrow’s most popular free-entry tourist attraction is the Dock Museum, built upon and around an old graving dock. Manufacturing is the largest employment sector, with BAE Systems being the single largest employer. The Borough and surrounding Furness area is on the verge of a sustained period of economic growth from BAE Systems’ submarine programme, GlaxoSmithKline’s biopharmaceutical plant, Orsted (formerly DONG Energy) offshore wind farm, Sellafield and other investments. Barrow Borough Council Draft Statement of Accounts 2019/20 Page 1 Narrative Report The Full Council comprises 36 elected Councillors and is responsible for taking all decisions, but to make this manageable it gives four committees covering planning, licensing, audit and governance, and finance and policy (executive) responsibility to carry out most of its functions. By law the authority is responsible for delivering housing services, revenues and benefits, planning and building control, environmental health and licensing services, refuse collection, street cleansing and waste collection services to the public. In addition the authority chooses to deliver leisure, economic development and regeneration services. All services are supported by finance, IT, HR, corporate, legal and other central support functions. The current management structure of the authority comprises the Chief Executive, 2 Directors, Head of Legal and Governance and 2 Assistant Directors who are responsible for delivery of local services; these officers are collectively the authority’s Management Team: 3. Corporate Aims and Achievements The authority delivers services to people who live in, work in and visit the Borough. The authority has an overarching Council Plan which sets the focus for the priorities and direction for the use of the available resources. The authority’s Local Code of Corporate Governance sets out the framework within which the authority conducts its business and affairs, and is based on the principles of good governance. The authority produces an Annual Governance Statement with the Statement of Accounts which reports on the extent of the authority’s compliance with its principles and practices of good governance, including the arrangements for monitoring effectiveness. In order to effectively implement corporate priorities and meet legal obligations, the authority must maintain a financially stable position, be able to demonstrate value for money, good governance, transparency and must establish values and behaviours. The authority has identified the following cross-cutting objectives that are being implemented: Barrow Borough Council Draft Statement of Accounts 2019/20 Page 2 Narrative Report • financial resilience and financial stability; • strong procurement and effective contract management; • organisational development; • customer focus; and • consistent and professional project management. Our values are set out below and our behaviours have been identified in terms of what our colleagues would see, hear and feel when those values were being displayed: • community focus – provide excellent service for all customers and colleagues; • honesty and integrity – do the right thing; we are open and confident to challenge and be challenged; • our team – all work together to achieve our shared vision and goals; • aim high – encourage creativity and embrace change; and • proud – celebrate who we are and our achievements. The authority’s vision is for our Borough to be a great place to live, work and visit. The priorities that will deliver tangible long term benefits to the community are focussed on the following themes; the Council Plan for 2020/24 can be viewed in full on the Council’s website at https://www.barrowbc.gov.uk/the-council/corporate-documents/: Priority 1: People Enabling residents to live happy, healthy productive lives. Putting people at the centre of all that we do is a key priority for the Council. We will do this by helping them to have the best start in life, enjoy healthy and active lifestyles, and have opportunities to improve their well-being by building strong communities. We will actively encourage people to work with us to design activities that meet their needs. We will work with our communities so that people can enjoy good health and live in a safe environment where they can be happy and reach their full potential. Priority 2: Place Creating a vibrant, safe & welcoming place where people want to live. Our Borough is a great place to live, work and have fun. There is an abundance of natural beauty and heritage but there is also an opportunity to offer people more. We want a varied housing offer to retain our residents and attract new people to settle here. We want to build on existing strengths and encourage more people to visit the town centres in Barrow and Dalton by making them more vibrant so that residents and visitors enjoy a positive and memorable experience. We want to protect our natural environment. Priority 3: Prosperity Supporting our economy to thrive and benefit all our residents. Barrow’s manufacturing heritage and its pivotal role in the defence industry is a source of local pride and tradition. Our world-class manufacturing expertise is recognised worldwide, however to enable inclusive growth we will seek to diversify our economy to secure opportunities for our residents by supporting other key industries including the growing renewable energy sector. In particular, we have the opportunity to secure continued investment in the Borough and ensure our residents have the skills and services to allow them to benefit from the growing economy. We will deliver our ambitions through effective joint working with public and private sector partners, by offering a clear policy framework, proactive steps to promote the role and opportunities within the Borough and by securing additional public and private investment. Barrow Borough Council Draft Statement of Accounts 2019/20 Page 3 Narrative Report Council Plan 2020/24 progress includes: • stronger links established with the community, third sector, health and police
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