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Annual Accounts Final for Council 27-6-19

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Annual Accounts Final for Council 27-6-19 EAST AYRSHIRE COUNCIL FOR THE YEAR ENDING 31 MARCH 2019 Front cover ‘Year of Young People 2018’ images (rows from left to right) Row 1 Whatriggs Primary School official opening Barony Campus time capsules Barony Campus foundation stone laid by John Swinney Hurlford Primary School and Early Childhood Centre extension opening Row 2 William McIlvanney Campus official opening William McIlvanney Campus plaque unveiling by Siobhán and Liam McIlvanney WW1 Centenary celebrations, Thiepval Memorial, France Year of Young People event, Ayrshire College, Kilmarnock Row 3 Crosshouse Primary School Happy Hive Year of Young People Colour Run Auchinleck and Cumnock Academy Scotland Rugby Internationalists East Ayrshire Youth Conference 2018 Row 4 Scottish Youth Parliament, Ayrshire College, Kilmarnock Barony Campus Meet the Team event Year of Young People Awards Ceremony, Dumfries House Year of Young People time capsule CONTENTS Management Commentary 1 Note 16 Intangible Assets 41 Note 17 Capital Commitments 41 Explanatory and Assurance Statements Note 18 Assets Held for Sale 42 Statement of Responsibilities 18 Note 19 Heritage Assets 42 Annual Governance Statement 19 Note 20 Inventories 42 Expenditure and Funding Analysis (EFA) Note 21 Debtors 42 and Note to EFA 25 Note 22 Creditors 43 Note 23 Cash and Cash Equivalents 43 Principal Financial Statements for the Council and its Group Note 24 Provisions 43 Note 25 Contingent Assets and Liabilities 43 Movement in Reserves Statements (MiRS) 27 Note 26 Financial Instruments 44 Comprehensive Income and Expenditure Statement (CIES) 29 Note 27 Risks Arising from Financial Instruments 45 Balance Sheet 30 Note 28 Related Parties 49 Cash Flow Statement 31 Note 29 Unusable Reserves 50 Note 30 Ayrshire Roads Alliance 51 Notes to the Single Entity Annual Accounts Comprehensive Income and Expenditure General Accounting Policies and Assumptions Statement Note 1 Expenditure and Income Analysed Note 31 Accounting Policies 52 by Segment and Nature 32 Note 32 Accounting Standards Issued Note 2 Service Income and Expenditure not Adopted 61 including Internal Recharges 32 Note 33 Events After the Balance Sheet Date 61 Note 3 External Audit Costs 33 Note 34 Critical Judgements in Note 4 Agency Services 33 Applying Accounting Policies 61 Note 5 Material Items of Income and Note 35 Assumptions Made about the Expenditure 33 Future and Other Major Sources of Estimation Uncertainty 62 Note 6 Grant Income 33 Notes to the Group Entities Balance Sheet Note 36 Summarised Information of the Group 63 Note 7 PPP and Similar Contracts 34 Note 8 Operating Leases 35 Supplementary Financial Statements and Notes Note 9 Pension Schemes - Defined Benefit 35 Housing Revenue Account 65 Note 10 Pension Schemes - Council Tax Income Account 67 Defined Contribution 38 Non-Domestic Rate Account 68 Note 11 Capital Expenditure and Financing 38 Note 12 PPP Assets Included in PPE 39 Remuneration Report 69 Note 13 Impairment Losses 39 Common Good Account 74 Note 14 Fair Value Hierarchy 39 Trusts and Bequests 75 Note 15 Property, Plant and Equipment (PPE) 40 Glossary of Terms 76 EAST AYRSHIRE COUNCIL All Councils continue to face significant challenges, particularly from continued real terms reductions in revenue funding by government. At the same time, demand for Council services is continuing to grow and new legislation places additional responsibilities on local government. In order to overcome these challenges, we are transforming our approach to ensure that our services are redesigned, aligned and delivered within reduced budgets in ways that will best serve our communities. To do this, we will build on our 2012-2017 Transformation Strategy, which successfully secured savings of £34 million for the Council by identifying new ways of delivering services and securing positive outcomes for our communities. Our new Transformation Strategy has been developed to deliver a programme, which, by 2022, will see a smaller Council employing fewer people but will continue to deliver high quality, key services; and an engaged Council, enabling communities to share decision making and providing opportunities for joint delivery of services. Our Council is well positioned to deliver the change needed to meet the challenges of the future. MANAGEMENT COMMENTARY 1 INTRODUCTION TO EAST AYRSHIRE East Ayrshire covers an area of 490 square miles, Overall, population numbers in East Ayrshire are with a population of 121,840 residents living in a projected to remain broadly static through to 2026, mixture of urban, rural and isolated communities. while the population of Scotland is projected to Kilmarnock is the largest urban area with a increase by 3.2% over the same period. There is, population of over 46,000. Other communities however, a decline projected in the population in range from less than a hundred people in small East Ayrshire aged 16-29 (-11.8%), 30-49 (-5.4%) villages and rural areas, to around 8,700 people and 50-64 (-0.6%), and growth in the population in Cumnock, the second largest town. Situated in aged 0-15 (0.3%) and 65-74 (8.3%). Importantly, south west Scotland, East Ayrshire has a varied there will be a substantial increase in the 75+ age natural environment, a rich and high profile cultural group, with a projected rise of 27.4%. Thereafter the heritage, a proud industrial history and a range of population of East Ayrshire is projected to decline by activities, recreation and hospitality, which attract 3.1% between 2026 and 2041 compared with a rise visitors from all over the world. of 5.3% in Scotland.These changes are important in how the Council and our Community Planning Partners shape future service design and delivery. “East Ayrshire is a place with strong, safe and vibrant communities where everyone has a good quality of life and access to opportunities, choices and high quality services which are sustainable, accessible and meet people’s needs.” MANAGEMENT COMMENTARY 2 INTRODUCTION TO EAST AYRSHIRE LAND AREA 127,033 HECTARES 121,840 (490 SQUARE MILES) estimated population 3.4% URBAN LAND 96.6% RURAL LAND 48.5% MALE 51.5% FEMALE MAIN TOWNS Kilmarnock Population 46,056 Cumnock Population 8,707 Remainder of the population lives in 3.1% smaller communities and rural areas. reduction in projected population 58,504 by 2041 dwellings on Council Tax Register MANAGEMENT COMMENTARY 3 OUR PRIORITIES In East Ayrshire, the Community Plan, covering the period from 2015 to 2030, is recognised as the sovereign planning document for the local area, providing the overarching strategic policy framework for the delivery of services by all partners. East Ayrshire Community Planning Partnership To drive forward the activity contained in the comprises representation from the following thematic Delivery Plans, each Delivery Plan has a organisations: the Council, NHS Ayrshire and Arran, Strategic Lead Officer and a multi-agency working Police Scotland (including Police Authority), Scottish group. These delivery themes are mirrored by the Fire and Rescue Service, Scottish Enterprise, Council’s management structure. Ayrshire College, Strathclyde Partnership for Transport, Skills Development Scotland, East The strategic plans of all Partner agencies are Ayrshire Health and Social Care Partnership, Scottish aligned to the Community Plan, ensuring that their Government, Voluntary Sector, Community Sector, mainstream activity, detailed within their Service / and Ayrshire Chamber of Commerce and Industry. Operational Plans, is directed at achieving identified and agreed local outcomes. The three shared strategic priorities agreed by the Council and the Community Planning Partnership Board, which are reflected across all of our work are: • Improving outcomes for vulnerable children and young people, with a particular focus on looked after children and young people and young carers; • Older people: adding life to years – tackling social isolation; and • Community led regeneration – empowering communities and building community resilience. In East Ayrshire, the Local Outcomes Improvement Plan 2018-2021, underpins our Community Plan, providing the formal performance management framework, against which to demonstrate our progress towards improving outcomes for local people and our communities. Our annual The following key thematic priorities of the performance is reported to a joint meeting of the Community Plan are being taken forward through Community Planning Partnership Board and East the implementation of strategic Delivery Plans, Ayrshire Council in September each year. which operate for a three-year period (currently 2018-2021): Economy and Skills Safer Communities Wellbeing MANAGEMENT COMMENTARY 4 COUNCIL MANAGEMENTEast Ayrshire Council STRUCTURE Senior Management Structure CHIEF EXECUTIVE Chief Chief Chief Executive Governance Internal NHS Ayrshire Officer Auditor & Arran Depute Chief Executive and Depute Director of Chief Financial Chief Health & Social Officer Executive Care Partnership Policy, Planning and Strategic Lead: Strategic Lead: Strategic Performance Economy Safer Lead: Manager and Skills Communities Wellbeing Head of Education Head of Housing Health Head of Children’s and Communities and Safety Health, Care and Section Justice Services Manager and Chief Social Head of Planning Work Officer and Economic Head of Ayrshire Development Roads Alliance Integrated Transport Head of Community Head of Finance Head of Facilities Services Health and Care and ICT and Property Manager Services Management Head of Primary Head of Human Care and Out of Resources
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