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Statement of Accounts 2013/14

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Statement of Accounts 2013/14 ANNUAL FINANCIAL REPORT AND ACCOUNTS 2020/21 EQUALITY & DIVERSITY STATEMENT Finance Service aims to regularly review all documents, policies and procedures to ensure that there are no negative equality impacts. Consultation is an important part of how we achieve this. If you feel, on reading this document, that there may be a negative equality impact please tell us about this. Please also let us know if you need to access this document in a different format. You can do this by contacting: Name Telephone Email Rose Bennett 01706 925419 [email protected] Yvonne Dunease 01706 925273 [email protected] Page | 2 Rochdale Borough Council Annual Financial Report and Accounts 2020/21 CONTENTS 1. REGULATION & INTRODUCTION PAGE NO. Independent Auditor’s Report 4 Commentary by the Cabinet Member for Finance 5 Chief Finance Officer’s’ Narrative Report 6 Statement of Responsibilities 30 2. STATEMENT OF ACCOUNTS The Comprehensive Income and Expenditure Statement 32 The Movement in Reserves Statement 33 The Balance Sheet 34 The Cash Flow Statement 35 Index of Notes to the Accounts 36 Notes to the Accounts 37 The Collection Fund Statement 114 3. SUPPLEMENTARY INFORMATION Glossary of Terms 117 Page | 3 Rochdale Borough Council Annual Financial Report and Accounts 2020/21 REGULATION & INTRODUCTION INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF ROCHDALE BOROUGH COUNCIL Page | 4 Rochdale Borough Council Annual Financial Report and Accounts 2020/21 COMMENTARY BY THE CABINET MEMBER FOR FINANCE As Cabinet Member for Finance I am responsible for ensuring that Rochdale Borough Council makes the most effective use of its resources in order to deliver the value for money services that local people need. I therefore welcome the opportunity to comment on the Council’s financial performance for the year ended 31st March 2021. The borough has faced the unprecedented challenge of the Covid-19 pandemic during 2020/21, and the Council has supported local residents, families and businesses in dealing with its impact. During 2020/21 the Council spent £562.2m on day to day services. This was partially offset by £350.1m of income obtained from fees and charges, rents and specific grants. Residents funded £92.3m of the Council spend on day to day services through Council Tax and the Council received £41.5m in Business Rates income. The Council faced significant challenges in keeping spending within the budget in 2020/21. The robust budget monitoring arrangements and the hard work of Council officers helped to ensure that resources were directed to priority areas. As well as revenue spending on day to day services, the Council invests a significant amount on improving our assets. In 2020/21 capital spending amounted to £53.8m, of which £17.0m was invested in Council buildings, including schools, £12.6m on highways investment and the transport plan, and £5.6m on vehicles, plants and equipment. We are always striving to make the Borough of Rochdale a better place to live, work and play. We are achieving this by priority investment in our area, for example in Rochdale Town Centre, our roads, schools and open spaces. Following the Local Government Finance Settlement announced in February 2021, a balanced budget for 2021/22 was presented to Budget Council, which included savings totalling £1.2m. The provisional budget for 2022/23 has identified an additional gap of £5.1m, with further uncertainty regarding the level of funding that the Council will receive and the budget requirements of the Council over the next Parliament, especially the ongoing financial impact of the Covid-19 pandemic. The figures, therefore, from 2022/23 onwards are subject to change. Given the above there will inevitably be an impact across the Council as we need to ensure that a balanced budget for future years is achieved, while understanding the impact on the Medium Term Financial Strategy of the Covid-19 pandemic, the demand for services, and the level of government funding. Against this backdrop the Council is looking to invest in the transformation of the way it delivers its services within the resources available. The Council will be required to make some challenging decisions regarding the services it provides going forward, but will continue to look for ways to reduce financial pressures on local people and to provide innovative support to local businesses, and to continue to invest in providing the services that are important to local people. Residents can also be assured that whilst we consider the options for balancing future years’ budgets, the Council will look to ensure that service delivery and resources are directed towards the greatest priorities. Councillor Carol Wardle, Cabinet Member for Finance and Corporate 9th August 2021 Page | 5 Rochdale Borough Council Annual Financial Report and Accounts 2020/21 CHIEF FINANCE OFFICER’S NARRATIVE REPORT Narrative Report The financial statements for the year ended 31st March 2021 provide an overall explanation of the Council’s financial position both during 2020/21 and looking forward to 2021/22. The report aims to give electors, local residents, Council Members, partners, stakeholders and other interested parties confidence that the Council is financially viable and that public money is accounted for correctly. It is set out in the following sections: Section A – Key information about Rochdale Borough Council; Section B – The Profile of the Borough; Section C – Financial Performance in 2020/21; Section D – Financial Strategy: Outlook for 2021/22 and future years; Section E – The Financial Statements: Basis of preparation, purpose and summary; Section F – Significant transactions in 2020/21. SECTION A – KEY INFORMATION ABOUT ROCHDALE BOROUGH COUNCIL Political Structure Rochdale Borough Council currently has 60 elected Councillors from 20 wards across the Borough. The political make-up of the Council for 2020/21 was: Party Councillors Labour Party 44 Conservative Party 10 Liberal Democrat Party 3 Independent 2 Non-Aligned 1 The Labour Group had control of the Council. Following the Local Elections on 6th May 2021 the political make-up of the Council is: Party Councillors Labour Party 45 Conservative Party 10 Liberal Democrat Party 3 Independent 2 The Labour Group retained control of the Council. On the 19th May 2021 Councillor Neil Emmott assumed the role of Leader of the Council, previously held by Councillor Allen Brett. Place plan for the borough1 Our Place Plan sets out our vision for the borough from 2016-2021 and confirms our agreed strategic priorities. These priorities underpin everything we do and detail the high-level outcomes or impacts that we intend to deliver, to shape our place and improve the lives and conditions for the people, who live, visit and invest here. The plan is owned by the borough’s partnership board (the Transformational Leaders Group) and is delivered through a range of plans and strategies which are managed and monitored through a number of partnerships. The plan will be refreshed every 2 years to ensure that it is relevant in a constantly changing environment. 1 Place Plan for the Borough Page | 6 Rochdale Borough Council Annual Financial Report and Accounts 2020/21 Each individual organisation will align their organisational plans to the priorities in this plan. The Council’s Corporate Plan sets out how it contributes to the delivery of the Place Plan. Three priorities keep us focused on delivering our vision: People – We will safeguard and protect our vulnerable people and support people of all ages to be healthier, confident, and resilient, in control and successfully managing their lives. We will enable communities to thrive and develop. Place – We will create safe, resilient, flourishing and high quality places where people choose to live, work and invest. Prosperity – We will encourage business growth and enterprise; increase our skills levels and create the conditions for the creation of good quality jobs. The Corporate Plan2 Our vision: Make our borough a great place to grow up, get on and live well. Prosperity is the condition of being successful or thriving and that is what we want for our people and places. Prosperous people are healthy, safe, happy and able to participate fully in life. Prosperous places continually grow and change and they have strong local economies that provide opportunities and quality of life. Everyone in the borough will make things better for themselves and others. We will enable individuals and communities to lead change in their own lives and neighbourhoods, by having conversations and drawing upon their experiences and expertise to design and deliver the right services. We will also provide specialist support to those that are struggling and in need of extra help. As a Cooperative Council we are committed to working with citizens and partners to make our borough a great place to grow up, get on and live well. We are ambitious for our People and Place and our Passion to strive for excellence is what underpins our corporate plan. For many years councils have faced significant financial challenges, having to do more with less. While we have demonstrated resilience and have continued to deliver services and make improvements to the local area, we cannot ignore the ongoing financial difficulties that we face and the inequalities experienced by some people that live in the Borough. We must adopt a Pioneering and Open approach to meet the different needs and aspirations of our diverse communities. This involves responding positively to change, being realistic about what is practical and affordable, and working together to deliver outcomes. We are committed to our role as ambassadors for the Borough and we want everyone to join us in making the Borough of Rochdale a place to be Proud of. Our outcomes People get a good start People are protected People are resilient People are healthy People fulfil their potential Place is age friendly Place is inclusive Place is welcoming Place provides opportunities Place supports sustainable growth Directorate Summaries Adult Care Directorate Adult Care works with partners to support people over the age of 18 to remain as independent as possible when they need some care and support.
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