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Isle of Wight Council Statement of Accounts 2018-19

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Isle of Wight Council Statement of Accounts 2018-19 Isle of Wight Council Statement of Accounts 2018-19 Isle of Wight Council Statement of Accounts 2018-19 1 Isle of Wight Council Statement of Accounts 2018-19 CONTENTS Note Page Narrative report and Annual Governance Statement 4 Statement of responsibilities for the statement of accounts 5 Expenditure and funding analysis 6 Comprehensive income and expenditure statement 7 Movement in reserves statement 8 Balance sheet 10 Cash flow statement 11 Notes to the accounts Summary of significant accounting policies 1 Accounting standards that have been issued but have not yet been 2 adopted Critical judgements in applying accounting policies 3 Assumptions made about the future and other major sources of 4 estimation uncertainty Material items of income and expenses 5 Events after the reporting period 6 Note to the Expenditure and funding analysis 7A Segmental income 7B Expenditure and income analysed by nature 8 Adjustments between accounting basis and funding basis under 9 regulations Transfers to/from earmarked reserves 10 Other operating expenditure 11 Financing and investment income and expenditure 12 Taxation and non-specific grant incomes 13 Property, plant & equipment 14 Heritage assets 15 Investment properties 16 Intangible assets 17 Financial instruments 18 Nature and extent of risks arising from financial instruments 19 Inventories 20 Debtors 21 Debtors for local taxation 22 Cash and cash equivalents 23 2 Isle of Wight Council Statement of Accounts 2018-19 Assets held for sale 24 Creditors 25 Provisions 26 Usable reserves 27 Unusable reserves 28 Cash flow statement – operating activities (interest) 29 Cash flow statement – operating activities 30 Cash flow statement – investing activities 31 Cash flow statement – financing activities 32 Trading operations 33 Agency services 34 Members’ allowances 35 Officers’ remuneration 36 Termination benefits 37 External audit costs 38 Dedicated schools grant 39 Grant income 40 Related party transactions 41 Group accounts 42 Capital expenditure and capital financing 43 Leases 44 Private finance initiatives and similar contracts 45 Revaluation losses 46 Pension schemes accounted for as defined contribution schemes 47 Defined benefit pension schemes 48 Contingent liabilities 49 Contingent assets 50 Trust funds and other balances 51 Reclassification restatement 52 Authorisation of accounts for issue 53 Collection fund 90 Fire-Fighters pension fund 98 Isle of Wight Council pension fund 100 Glossary of terms 129 Auditor’s opinion 133 3 Isle of Wight Council Statement of Accounts 2018-19 Narrative report In accordance with the Accounts and Audit Regulations 2015 the council is required to prepare a narrative report in respect of each financial year. The narrative report must include comment by the authority on its financial performance and economy, efficiency and effectiveness in its use of resources over the financial year. The narrative report has been produced as a separate document and can be downloaded from the following web link: https://www.iwight.com/Council/OtherServices/Financial-Management/Accounts1 Annual Governance Statement In order to evaluate good governance in practice, there is also a statutory requirement under the Accounts and Audit Regulations 2015 for every local authority to prepare and publish an annual governance statement. This provides members of the public with an open assessment of how effective the council’s governance arrangements are considered to be against a code of corporate governance entitled “Delivering Good Governance in Local Government (2016)”. This document is published by CIPFA/SOLACE as recognised national lead bodies for public services. The code takes into account the characteristics of good governance set out above and translates them into specific core activities. The annual governance statement has also been produced as a separate document and can be downloaded from the following web link: https://www.iwight.com/Council/OtherServices/Financial- Management/Audit-and-Governance 4 Isle of Wight Council Statement of Accounts 2018-19 THE STATEMENT OF RESPONSIBILITIES FOR THE STATEMENT OF ACCOUNTS The authority’s responsibilities The authority is required to: • make arrangements for the proper administration of its financial affairs and to secure that one of its officers has the responsibility for the administration of those affairs. In this authority, that officer is the Director of Finance and Section 151 officer; • manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets. • approve the statement of accounts. The Director of Finance and Section 151 officer’s responsibilities The Director of Finance and Section 151 officer is responsible for the preparation of the authority’s statement of accounts in accordance with proper practices as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom (the Code). In preparing this statement of accounts, the Director of Finance and Section 151 officer has: • selected suitable accounting policies and then applied them consistently; • made judgements and estimates that are reasonable and prudent; • complied with the local authority code. The Director of Finance and Section 151 officer has also: • kept proper accounting records which were up to date; • taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the statement of accounts for the year ended 31 March 2019 required by the Accounts and Audit Regulations 2015 is set out on pages 6 to 128. I further certify that the statement of accounts gives a true and fair view of the financial position of the Isle of Wight Council at the 31 March 2019 and its income and expenditure for the year then ended. C Ward Director of Finance and Section 151 officer Date: 26th July 2019 (original signed) Cllr B Tyndall Chair of Audit Committee Date: 29th July 2019 (original signed) 5 Isle of Wight Council Statement of Accounts 2018-19 EXPENDITURE AND FUNDING ANALYSIS The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (government grants, rents, council tax and business rates) by local authorities in comparison with those resources consumed or earned by authorities in accordance with generally accepted accounting practices. It also shows how this expenditure is allocated for decision making purposes between the council’s services. Income and expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement. This analysis is a note to accounts rather than a principal statement. 2017-18 2018-19 (restated see note 52) Net Expenditure Adjustments Net Expenditure Net Adjustments Net Chargeable to between the in the Expenditure between the Expenditure in the General Funding and Comprehensive Portfolio reporting Chargeable to Funding and the Fund Balance Accounting Income and structure the General Accounting Comprehensive Basis Expenditure Fund Balance Basis Income and (see note 7A) Statement (see note 7A) Expenditure Statement £000 £000 £000 £000 £000 £000 Adult Social Care, 49,484 2,298 51,782 Public health & Housing 50,670 2,131 52,801 Needs 25,549 7,326 32,875 Children’s Services 24,797 5,851 30,648 Community Safety & 6,942 769 7,711 7,530 631 8,161 Public protection 2,845 3,252 6,097 Environment & Heritage 2,531 2,263 4,794 Infrastructure & 14,341 8,896 23,237 15,127 9,476 24,603 Transport Leader & Strategic 644 72 716 895 97 992 Partnerships Planning & Housing 874 1,136 2,010 495 419 914 Renewal Procurement, Projects 7,694 784 8,478 4,778 595 5,373 & Forward Planning Regeneration & 955 1,758 2,713 1,396 223 1,619 Business Development 13,711 1,602 15,313 Resources 12,959 6,685 19,644 123,039 27,893 150,932 Net Cost of services 121,178 28,371 149,549 Other Income and (133,393) (1,412) (134,805) (124,199) (9,744) (133,943) Expenditure (Surplus)/deficit on (10,354) 26,481 16,127 (3,021) 18,627 15,606 provision of services Opening General Fund 62,371 72,725 balance Less/add Surplus or 10,354 (deficit) on General 3,021 Fund balance in year Closing General Fund 72,725 75,746 Balance at 31 March 6 Isle of Wight Council Statement of Accounts 2018-19 COMPREHENSIVE INCOME & EXPENDITURE STATEMENT This statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices, rather than the amount to be funded from council tax and other revenue resources. Authorities raise income to cover expenditure in accordance with statutory requirements; this may be different from the accounting cost. The taxation position is shown in both the expenditure and funding analysis and the movement in reserves statement. 2017-18 2018-19 (restated see note 52) Gross Gross Net Gross Gross Net Expenditure Income expenditure Portfolio reporting structure Expenditure Income Expenditure (see note 8) (see note 8) (see note 8) (see note 8) £000 £000 £000 £000 £000 £000 Adult Social Care, Public health 86,088 (34,306) 51,782 84,969 (32,168) 52,801 & Housing Needs 116,011 (83,137) 32,874 Children’s Services 119,215 (88,567) 30,648 Community Safety & Public 10,554 (2,843) 7,711 10,774 (2,613) 8,161 protection 11,052 (4,955) 6,097 Environment & Heritage 10,198 (5,404) 4,794 28,854 (5,617) 23,237 Infrastructure & Transport 30,713 (6,110) 24,603 817 (101) 716 Leader & Strategic Partnerships 1,245 (253) 992 5,874 (3,864) 2,010 Planning & Housing Renewal 5,151 (4,237) 914 Procurement, Projects & 8,667
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