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Statement of Accounts 2018/19

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Statement of Accounts 2018/19 CONTENTS Preface Narrative Report 2018/19 3 Statements to the Accounts Statement of Responsibilities 21 Independent Auditors’ Report 22 Core Financial Statements and Explanatory Notes Comprehensive Income and Expenditure Statement 32 Movement in Reserves Statement 34 Balance Sheet 35 Cash Flow Statement 36 Notes to the Financial Statements 37 Supplementary Financial Statements and Explanatory Notes Collection Fund Income and Expenditure Statement 88 Notes to the Collection Fund Statement 90 Accounting Policies 91 Other Statements Annual Governance Statement 111 Glossary 127 1 CONTENTS INDEX OF NOTES TO THE FINANCIAL STATEMENTS Note Note Page No. 1 Expenditure and Funding Analysis 37 2 Expenditure and income analysed by nature 40 3 Adjustments between accounting basis and funding basis under regulations 41 4 Other operating expenditure 42 5 Financing and investment income and expenditure 43 6 Taxation and non-specific grant income 43 7 Grant income and contributions credited to cost of services 44 8 Officers’ remuneration 45 9 Members’ allowances 48 10 External audit costs 48 11 Trading operations 49 12 Events after the balance sheet date 49 13 Property, plant and equipment 49 14 Capital expenditure and capital financing 53 15 Accounting for schools 54 16 Heritage assets 55 17 Investment properties 56 18 Intangible assets 56 19 Long term investments 57 20 Long term debtors 57 21 Inventories 58 22 Short term debtors 58 23 Cash and cash equivalents 58 24 Short term creditors 59 25 Provisions 59 26 Financial instruments 60 27 Other long term liabilities 67 28 Private finance initiative (PFI) 67 29 Leases 68 30 Reserves 70 31 Post-employment benefits 75 32 Cash flow statement notes 82 33 Related parties 83 34 Contingent assets and liabilities 86 35 Trust funds 86 2 NARRATIVE REPORT 2018/19 INTRODUCTION BY THE DIRECTOR OF FINANCE & CUSTOMER SERVICES – Louise Mattinson I am very pleased to introduce you to Blackburn with Darwen’s Statement of Accounts for 2018/19 as this gives me the opportunity to highlight just some of the many excellent achievements of the Council over the course of the last year, which have been delivered in spite of the financial challenges faced as the Government’s austerity programme has continued to cut resources. Despite the funding reductions and the rising demand for services, particularly in Children’s Services and Adult Social Care, we remain committed to ensuring we continue to develop, prosper and grow and that we make the borough a better place to live, work and visit. Our work and achievements featured in our celebrations of our 20th anniversary as a Unitary Authority and were also recognised in the announcement of Blackburn with Darwen Borough Council as the Local Authority of the Year in The Municipal Journal (MJ) Local Government Achievement Awards in June 2018. The panel of independent judges commented that the Council has ‘an unwavering mission to put the customer first’ and described us as an ‘outstanding example of modern local government’. The Council’s achievements in adult and children’s services and public health were given a special mention. This is the third time the Council has had a top national accolade in the past 20 years – previously winning the Local Government Council of the Year twice. Nonetheless we are far from complacent and we continue to work hard and take difficult decisions to ensure that the Council can continue to deliver, and live within the resources it has available. Although funding has reduced by over 36% since 2010/11 and the costs of inflation and increasing demand have had to be absorbed, during the year we reached the end of a £44.6 million efficiency savings programme delivered over the past four and a half years. Through strong financial management, processes and procedures, we have faced the challenge head-on and to which all teams, departments and portfolios have contributed, enabling the Council to deliver a balanced budget for 2019/20. The financial standing of the Council continues to be robust as is clearly demonstrated in this Statement of Accounts. Like all Councils, we remain concerned for the financial position for 2020/21 and beyond given the lack of information provided at this time by central Government in relation to future funding and the mechanisms for its distribution. However, in addressing the scale of the financial challenge faced, the Council remains steadfast in pursuit of its strategy to deliver the Corporate Plan priorities, grounded in the principles of; delivering, as far as is possible, the services that our residents need and want, providing help and support to those in hardship, and encouraging the growth of jobs and businesses across the borough. At Policy Council in December 2018 the Council agreed to continue working across the four themes which underpin the delivery of the Corporate Plan, to ensure we continue to meet the needs of the people we serve. Examples of just some of our achievements in delivering on our commitments during 2018/19 are; Image and marketing of the borough We continue to promote the borough as a great place to live, work and visit: From a housing perspective, through our Growth Programme we have achieved the highest ever number of housing completions during a single year with 756 properties delivered, comprising of new builds and some empty properties brought back in to use. To support this we have continued to deliver on our infrastructure programme, including Ellison Fold Way which opened during the year providing a gateway to new housing sites in Darwen, and we also progressed a number of schemes to support development of the borough through our Growth Deal funding. Our efforts have also been recognised during the year in the following accolades: 3 NARRATIVE REPORT 2018/19 The borough was a winner in the Lancashire Tourism Awards, picking up two prestigious awards for its National Festival of Making and its’ Cathedral as a cultural hub. Blackburn also picked up a hat trick of prizes in the North West Britain in Bloom Awards. Darwen Tower has been recognised as a top ten great place to walk by readers of a national newspaper. Fairness / Equality / Cohesion In December 2018 exciting plans to boost the borough’s economic prosperity and to build stronger more integrated communities were launched. ‘Our Community, Our Future’ is the Social Integration Strategy produced by the Council, with its partners and the Local Integration Partnership, bringing together representatives from businesses, schools, colleges, health organisations and the voluntary, community and faith sector. The strategy sets out how the funding, awarded following a successful bid to the Government to be one of only 5 ‘Integration Areas’, will be utilised in order to: increase economic prosperity for all the borough’s communities as an essential prerequisite for social integration, strengthen relationships between the borough’s diverse communities, focussing predominantly on adults, build connections and strengthen relations between young people who live in our communities and connect disadvantaged communities to shared spaces; linking people and neighbourhoods to zones of employment, physical assets, community shared spaces and social action. To remain strong on partnerships, working with businesses and other public sector organisations, as well as residents and community groups; Working with colleagues in health and social care across Pennine Lancashire as part of ‘Together a Healthier Future’ programme, breaking down organisational barriers to work better together in developing neighbourhood health and wellbeing teams across the area, bringing health, care services and support closer to people’s homes to meet the needs of the local community, promoting health and wellbeing and supporting people and their families. Volunteers’ Week in June 2018 was a celebration of the fantastic contribution that volunteers make, and helped to publicise and promote volunteering opportunities not just with the Council, but with other partners and voluntary and community groups. Volunteers play an important role in our borough, from helping to run youth groups, to organising community events, to raising money for charities, to working with vulnerable people, to name just a few areas. Our volunteers have assisted in delivering services which, due to reductions in our resources since 2010, the Council has been unable to continue or which we have had to curtail to manage our budgets. Our ‘Your Call’ programme, launched back in 2011, has gone from strength to strength in numbers and supports residents who want to make a difference in their communities whilst providing opportunities to learn new skills and meet new people; as a council we have worked with volunteers, community groups and businesses on a variety of projects e.g. working in partnership, our Children’s Centre’s supported and assisted the Summer Lunchbox Scheme which provided over one thousand children in Blackburn and Darwen with a free, daily lunchbox during the school holidays. To make use of technology and digital opportunities in all services; To ensure clear focus, sufficient resource and prioritisation of this area, a new Director post was created and recruited to during the year, a Director of Digital and Business Change, to lead on our digital transformation programme. During the year we commenced our Device Modernisation Project comprising: A desktop refresh programme (£1.875 million), to replace all existing laptops and tablets with the latest operating systems to facilitate the introduction of much needed new technology to develop and enhance our services, systems and processes. 4 NARRATIVE REPORT 2018/19 An infrastructure replacement programme (£0.95 million) which, over the next five years, will be implemented to maintain and/or enhance the existing infrastructure including internal firewalls, Wi- Fi, virtual platform and storage, Netscalers, Lync/Skype for business and our Citrix server farm. As the financial statements demonstrate, despite the financial challenges faced during 2018/19, the Council remains on a firm financial footing.
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