Cornwall Council Statement of Accounts 2017/18
Total Page:16
File Type:pdf, Size:1020Kb
Cornwall Council 2017/18 Annual Financial Report And Statement of Accounts This page is intentionally blank Contents Cornwall Council 2017/18 Annual Financial Report and Statement of Accounts Contents Page Narrative Report 2 Independent Auditor’s Report for Cornwall Council 25 Independent Auditor’s Report for Cornwall Pension Fund 30 Statement of Accounts Statement of Responsibilities and Certification of the Statement of Accounts 34 Main Financial Statements 35 Comprehensive Income and Expenditure Statement 36 Movement in Reserves Statement 36 Balance Sheet 38 Cash Flow Statement 38 Notes to the Main Financial Statements 40 Index of Notes 41 Group Financial Statements 123 Group Movement in Reserves Statement 124 Group Comprehensive Income and Expenditure Statement 124 Group Balance Sheet 126 Group Cash Flow Statement 126 Notes to the Group Financial Statements 128 Supplementary Financial Statements 141 Housing Revenue Account 142 Notes to the Housing Revenue Account 145 Collection Fund 151 Notes to the Collection Fund 153 Fire Fighters’ Pension Fund Account 155 Pension Fund Accounts 159 Cornwall Local Government Pension Scheme Accounts 160 Notes to the Pension Scheme Accounts 161 Glossary 191 Page 1 Narrative Report Cornwall Council 2017/18 Statement of Accounts Narrative Report from Service Director for Resources and Section 151 Officer I am pleased to introduce our Annual Financial Report and Statement of Accounts for 2017/18. This document provides a summary of Cornwall Council’s financial affairs for the financial year 1 April 2017 to 31 March 2018 and of our financial position at 31 March 2018. 1. The Financial Report and Statements Our Annual Financial Report and Statement of Accounts includes the following financial statements and disclosure notes: Narrative Report – from the Service Director for Resources and S151 Officer. This provides interested parties with an effective guide to the most significant matters reported in the Statement of Accounts including information relating to the Council’s spending and financial position and its performance in key areas. Independent Auditor’s Reports – there is an independent report from the external auditors to the Members of the Council and also for Cornwall Pension Fund. Statement of Accounts o Statement of Responsibilities – this explains the different responsibilities relating to the Statement of Accounts and confirms their approval. o The Main Financial Statements - Comprehensive Income and Expenditure Statement – this statement shows the net cost in the year of providing Council services. - Movement in Reserves Statement – this statement shows the movement in the year on the different reserves held by the Council. - Balance Sheet – the Balance Sheet shows the value at 31 March 2018 of the assets and liabilities held by the Council. - Cash Flow Statement – the Cash Flow statement shows the changes in cash and cash equivalents of the Council during the reporting period. o Notes to the Main Financial Statements – these provide additional, more detailed information on specific areas from the main financial statements. o Supplementary Financial Statements - Housing Revenue Account (HRA) Income and Expenditure Statement - the HRA Income and Expenditure Statement shows the net cost in the year of providing council housing. - Collection Fund Income and Expenditure Statement – this statement shows transactions in relation to council tax and national non-domestic rates. o Group Financial Statements – a further set of financial statements, in the same format as those described above, including companies and other organisations in which we have an interest, together with relevant notes. o Fire Fighters’ Pension Fund Account – setting out the financial arrangements for this specific scheme. o Pension Fund Accounts – relating to the main Local Government Pension Scheme we run for our employees (and those of some other organisations). Glossary – an explanation of technical terms that have been used in the document. Except where otherwise indicated, figures are presented in millions of pounds (£m) and are rounded to the nearest thousand pounds (£0.001m). Page 2 Narrative Report Cornwall Council 2017/18 Statement of Accounts 2. An Overview of Cornwall Council Organisational Overview and External Environment Cornwall Council is a unitary local authority serving a population of over 550,000 residents. As a unitary Council it provides all local authority services including adult social care, children’s social care, education, public health, highways, planning, housing, benefits, fire and rescue, building control and environmental services amongst many more. Cornwall is a large unitary area covering 3,500km2, predominantly rural with 480km of coastline. The Cabinet, in June 2017, set out its aim as: “We will work with the people of Cornwall and use our resources wisely to protect and enhance our unique environment, create more homes and jobs for our residents and ensure everyone can live well and safely together.” Furthermore, it set out its values: We listen: we will work with the people of Cornwall We are responsible: we will use resources wisely We act in the best interests of Cornwall: putting people first To guide the administration through the next four years, the Cabinet has developed its Strategic Business Plan 2018/19 to 2021/22 which sets out how the Council will deliver its Priorities for Cornwall and demonstrates its commitment to protecting the most vulnerable, investing in jobs and homes within Cornwall and continuing to improve Cornwall’s infrastructure so that our people, places and services are connected. The priorities for Cornwall are: Page 3 Narrative Report Cornwall Council 2017/18 Statement of Accounts These priorities and Business Plan have been set against a backdrop of reducing government funding and uncertain economic times which continues to present significant challenges to the Council in delivering services to its residents. An Annual Report 2017/18 was published in May 2018 which sets out how the Council delivered against its priorities. The report will be available on the Council’s website. Since its formation in 2009, the Council has delivered over £300m in savings and has seen its central government funding reduce significantly. Consequently, the Council has become more dependent upon locally raised resources; council tax and business rates. In 2009/10 council tax made up around 33% of the Council’s funding whereas in 2021/22 it is expected to be 56%. It is assumed government policy will continue in this direction with further cuts to government funding. We recognise this impact on residents and are proactively driving down costs where possible and changing our service delivery to become more efficient wherever possible. Cornwall Council’s council tax remains the lowest in the South West. £ Council Tax Band D 2017/18 South West Councils (excluding Police and Parishes) 1,600 1,550 Cornwall Council 1,500 1,450 1,400 1,350 1,300 Internally the Council is led by the Chief Executive Officer and the Council Directors Team, supported by the Council Leadership Team. Services are grouped into Directorates which are in turn led by Strategic Directors. In 2017/18 the Council was organised around four Directorates: Children, Families and Adults – including adult social care, children’s services such as protecting vulnerable children and supporting disabled children and services around education and supporting families. Customer and Support Services – including commercial services such as procurement and property and assets as well as the Council’s support services such as legal services, finance etc. Economic Growth and Development – including economic development, culture, public transport and planning. Page 4 Narrative Report Cornwall Council 2017/18 Statement of Accounts Neighbourhoods – including fire and rescue, waste management and environmental services. The Council owns a number of companies that form part of its group. Some of these are commercial whereas others facilitate delivery of Council services and objectives by other means than direct service provision by the Council. This is an increasingly common model of operation for local authorities as they seek alternative ways of achieving their aims within reduced funding arrangements. Cornwall Council’s Business Group is as follows: Cornwall Council Corserv Ltd CORMAC Wave Hub Contracting (including a Joint Venture with Nottinghamshire County Ltd Council called Via East Midlands Ltd) Ltd Cornwall Cornwall Cormac Cornwall Development Housing Ltd Solutions Ltd Airport Ltd Company Ltd Corserv Ltd - a wholly-owned company of Cornwall Council established to provide strategic direction and oversight for its existing arm’s-length and commercial trading companies. Corserv Ltd has also entered into a joint venture arrangement with Nottinghamshire County Council called Via East Midlands Ltd to deliver a sustainable highways service for Nottinghamshire. Cornwall Housing Ltd - manages and maintains the 10,281 council houses in mid and east Cornwall. The company looks after about 300 leaseholders on behalf of the Council and manages Council owned garages, shops and land in neighbourhoods with council housing. Cornwall Housing Ltd also deliver the Homechoice and Housing Options and Advice service for the Council. CORMAC Solutions Ltd - provides services to Cornwall Council and its partners. The company's purpose is to enhance local communities by delivering innovative services which create a better local environment