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Statement of Accounts 2015-16

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Statement of Accounts 2015-16 Statement of Accounts 2015-16 www.norfolk.gov.uk Contents NARRATIVE REPORT 3 STATEMENT OF RESPONSIBILITIES 12 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF NORFOLK COUNTY COUNCIL 13 SINGLE ENTITY STATEMENTS 16 MOVEMENT IN RESERVES STATEMENT 16 COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT 17 BALANCE SHEET 18 CASH FLOW STATEMENT 19 NOTES TO THE CASH FLOW STATEMENT 19 NOTES TO THE FINANCIAL STATEMENTS 21 1. ACCOUNTING POLICIES 21 2. ACCOUNTING STANDARDS ISSUED , NOT ADOPTED 35 3. CRITICAL JUDGEMENTS IN APPLYING ACCOUNTING POLICIES 35 4. ASSUMPTIONS MADE ABOUT THE FUTURE AND OTHER MAJOR SOURCES OF ESTIMATION UNCERTAINTY 36 5. MATERIAL ITEMS OF INCOME AND EXPENSE 37 6. EVENTS AFTER THE REPORTING PERIOD 37 7. ADJUSTMENTS BETWEEN ACCOUNTING BASIS AND FUNDING BASIS UNDER REGULATIONS 38 8. TRANSFERS TO /FROM EARMARKED RESERVES 40 9. COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT : OTHER OPERATING EXPENDITURE 43 10. COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT : FINANCING AND INVESTMENT INCOME AND EXPENDITURE 43 11. COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT : TAXATION AND NON -SPECIFIC GRANT INCOME 43 12. PROPERTY , PLANT AND EQUIPMENT 44 13. HERITAGE ASSETS 47 14. INVESTMENT PROPERTIES 49 15. FINANCIAL INSTRUMENTS 50 16. DEBTORS 52 17. CASH AND CASH EQUIVALENTS 53 18. ASSETS HELD FOR SALE 53 19. CREDITORS 53 20. PROVISIONS 54 21. BALANCE SHEET : USABLE RESERVES 54 22. BALANCE SHEET : UNUSABLE RESERVES 55 23. AMOUNTS REPORTED FOR RESOURCE ALLOCATION DECISIONS 58 24. TRADING OPERATIONS 61 25. AGENCY SERVICES 61 26. JOINT ARRANGEMENTS 61 27. MEMBERS ALLOWANCES 63 28. OFFICERS REMUNERATION 63 29. EXTERNAL AUDIT COSTS 66 30. DEDICATED SCHOOLS GRANT 67 31. GRANT INCOME 67 32. RELATED PARTY TRANSACTIONS 69 33. CAPITAL EXPENDITURE AND CAPITAL FINANCING 70 34. LEASES 71 35. PFI AND SIMILAR CONTRACTS 73 36. IMPAIRMENT LOSSES 74 37. PENSION SCHEMES ACCOUNTED FOR AS DEFINED CONTRIBUTION SCHEMES 75 38. DEFINED BENEFIT PENSION SCHEMES 75 39. CONTINGENT LIABILITIES 81 40. NATURE AND EXTENT OF RISKS ARISING FROM FINANCIAL INSTRUMENTS 81 41. FOUNDATION SCHOOLS 84 42. FUNDS ADMINISTERED FOR THIRD PARTIES 84 43. TRUST FUNDS 85 Statement of Accounts 2015-16 - 1 - Norfolk County Council NORFOLK FIRE FIGHTERS PENSION FUND ACCOUNTS 86 GROUP ACCOUNTS 88 GROUP MOVEMENT IN RESERVES STATEMENT 92 GROUP COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT 94 GROUP BALANCE SHEET 95 GROUP CASH FLOW STATEMENT 96 NOTES TO THE GROUP CASH FLOW STATEMENT 96 NOTES TO THE GROUP ACCOUNTS 98 1. ACCOUNTING POLICIES 98 2. GROUP COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT (G ROUP CIES) 99 3. TAX EXPENSES OF GROUP ENTITIES 99 4. PROPERTY , PLANT AND EQUIPMENT 100 5. INTANGIBLE ASSETS 102 6. INVENTORIES 102 7. DEBTORS 103 8. CASH AND CASH EQUIVALENTS 103 9. CREDITORS 103 10. DEFINED BENEFIT PENSION SCHEMES 104 11. RESERVES 106 12. LEASING 106 13. FINANCIAL INSTRUMENTS 107 NORFOLK PENSION FUND ACCOUNTS 109 INDEPENDENT AUDITOR’S REPORT ON NORFOLK PENSION FUND ACCOUNTS TO THE MEMBERS OF NORFOLK COUNTY COUNCIL 110 GLOSSARY OF TERMS 153 Statement of Accounts 2015-16 - 2 - Norfolk County Council Narrative Report Introduction This narrative report provides a brief analysis of the Council’s performance and financial position during the year, and assists in the interpretation of the financial statements, including the Group Accounts. It contains a commentary on the major influences affecting the authority’s financial results, and includes the following sections: • An introduction to Norfolk County Council • Financial highlights • Outlook for the future • Explanation of the financial statements • Further information An introduction to Norfolk County Council Council Services in Norfolk Norfolk County Council is a large shire county representing the whole of Norfolk. Local Government services in Norfolk are also provided by seven district/borough councils and numerous town and parish councils. County Council Services include Adult Social Services Environmental Policy Records Office Building Conservation Fire Service Registrars Children’s Services Highways (incl. Footpaths) Road and Footway Lighting Coroners Libraries Strategic Planning Countryside Museums Tourism County Farms Planning Trading Standards Economic Development Public Health Waste Management Emergency Planning Public Transport Support Youth Service Democracy Norfolk County Council has 84 elected members each representing an electoral division of up to 10,000 voters. Every four years the people of each division elect one councillor. The last election was in May 2013, and no one party had overall control through 2015-16. In May 2014, the Council moved from a Cabinet system to a Committee structure, and 2015-16 was the first full year under this system where decisions are made by all-party committees. There is no executive/scrutiny split. Committees, whose membership reflects the overall political makeup of the Council, debate, challenge and make decisions. The five service committees are Adult Social Care, Children’s, Communities, Environment Development and Transport, and Policy and Resources, supported by sub- and specialist committees. The Council has a clear strategy for the future called Reimagining Norfolk, a key part of which has been a continued focus on four priorities: • Excellence in education – working for a well-educated Norfolk where people are prepared for real jobs with good wages and prospects • Real jobs – making Norfolk a place where businesses are able to succeed and grow • Improving infrastructure – improving transport and technology infrastructure to make Norfolk a great place to do business • Supporting vulnerable people – including helping people earlier before their problems get too serious The following section looks at progress within each of these priority areas. Excellence in education Norfolk is the most improved local authority compared to both the statistical neighbour group and regional neighbours in terms of the proportion of schools judged “good” or “outstanding”: 86% of primary schools (up from Statement of Accounts 2015-16 - 3 - Norfolk County Council 60% in 2013) and 75% of secondary schools (up from 47% in 2013). The Norfolk average is now the same as the national average at 85% (from 8% below the national average in 2013). Exam results for looked after children in Norfolk have improved significantly - 26% of children in the Council’s care (for six months or more) achieved five A*-C grades at GCSE, 10% above the national average for looked after children. Fewer young people are NOT in education, employment or training – down from 5.9% in 2013 to 4.2% in December 2015 which is now in line with the national average. Adult Education is undergoing a rigorous transformation to become Norfolk Community Learning Services. The refreshed service focuses on the needs and aspirations of communities and individual learners, helping people maximise their potential and get back into learning. The new service was launched in May, ready for the 2016-17 programme starting in September 2016. Real jobs The Council works closely with New Anglia LEP on key sectors and priority locations, in order to grow the Norfolk economy and tackle issues of low wages/low skills. An outcome of this has been four new Enterprise Zones in Norfolk - Norwich Research Park, Scottow Enterprise Park, Egmere Business Zone and the Nar Ouse Business Park. The LEP has offered a £3m contribution to a new Aviation Academy which will provide many new places for engineering and other aviation careers, as well as academic and practical courses, and is likely to be the first facility of its kind in the world. Norfolk County Council has been the Managing Authority for the France (Channel) England programme throughout 2015-16. The programme manages over €200m of European Regional Development Funds (ERDF). There have been three calls for projects during the year, and 15 applications have been approved to progress to the second application phase with a value of €40m. Scottow Enterprise Park is now exceeding expectations in terms of income and development. Sixteen companies now operate out of the site employing 63 people (fte) and there continues to be strong interest from prospective tenants. Scottow is also home to one of the UK’s biggest solar farms. The Council has successfully bid to the European LEADER programme for more than £9m, which will go to projects all across the county. As well as supporting 303 projects, this funding aims to create another 337 jobs in the region, working on schemes that range from helping farms to diversify, nurturing new businesses, to lessening their environmental impact. Improved infrastructure The A47 Postwick Hub was completed in 2015-16. This major junction improvement at the eastern end of the A47 Norwich Southern Bypass was opened to traffic in December 2015, providing access to new business and housing developments in the area, as well as a connection to the Norwich Northern Distributor Road (NDR). Work on the NDR started with site clearance in December 2015, with main construction underway at the end of the year. The road is due to open in February 2018. The Council’s contract with a local bus operator means passengers are getting better conditions and new buses with Wi-Fi, and improved sites. This is a product of a tendering exercise in 2015 which has resulted in Norfolk having the only park and ride in the country that doesn’t require an ongoing subsidy from the taxpayer. Over the last two years the Council’s Better Broadband for Norfolk has more than doubled the number of homes in the county
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