Statement of Accounts 2012-13

Lincolnshire County Council Statement of Accounts 2012-13 Note Contents: Page Explanatory Foreword Introduction to the Accounts 3 Review of 2012-13 5 Statement of Responsibilities for the Statement of Accounts 11 Financial Statements Movement in Reserves Statement 12 Comprehensive Income and Expenditure Statement 14 Balance Sheet 15 Cash Flow Statement 16 Notes to the Financial Statements Note 1 Statement of Accounting Policies 17 Note 2 Accounting Standards that have been issued but have not yet been adopted 35 Note 3 Critical Judgements in Applying Accounting Policies 36 Note 4 Assumptions Made about the Future and Other Major Sources of Estimation and Uncertainty 37 Note 5 Exceptional Items 38 Note 6 Material Items of Income and Expenditure 39 Note 7 Events After the Balance Sheet Date 39 Note 8 Service Expenditure Analysis 40 Note 9 Adjustments between Accounting Basis and Funding Basis under Regulations 42 Note 10 Transfers to/from Earmarked Reserves 46 Note 11 Other Operating Expenditure 49 Note 12 Financing and Investment Income and Expenditure 49 Note 13 Taxation and Non-Specific Grant Income 49 Note 14 Property, Plant and Equipment 50 Note 15 Heritage Assets 55 Note 16 Investment Properties 57 Note 17 Intangible Assets 59 Note 18 Financial Instruments and Nature and Extent of Risks Arising from Financial Instruments 61 Note 19 Inventories 68 Note 20 Construction Contracts 68 Note 21 Debtors 68 Note 22 Cash and Cash Equivalents 69 Note 23 Assets Held for Sale 69 Note 24 Creditors 70 Note 25 Other Long Term Liabilities 70 Note 26 Provisions 71 Note 27 Usable Reserves 72 Note 28 Unusable Reserves 73 Note 29 Operating Activities 77 Note 30 Investing Activities 77 Note 31 Financing Activities 77 Note 32 Amounts Reported for Resource Allocation Decisions (Segmental Reporting) 78 Note 33 Acquired and Discontinued Operations 85 Note 34 Trading Activities 85 Note 35 Agency Services 86 Note 36 Road Charging Schemes Under the Transport Act 2000 87 Note 37 Pooled Budgets 87 Note 38 Members’ Allowances 89 Note 39 Officers’ Remuneration 90 Note 40 Exit Packages 92 Note 41 Termination Benefits 92 Note 42 External Audit Costs 93 1 Note 43 Expenditure on Publicity 93 Note 44 Landfill Allowances Trading Scheme (LATS) 94 Note 45 Dedicated Schools Grant 94 Note 46 Grant Income 95 Note 47 Related Parties 97 Note 48 Capital Expenditure and Capital Financing 99 Note 49 Leases 100 Note 50 Private Finance Initiatives (PFI) and Similar Contracts 103 Note 51 Impairment Losses 104 Note 52 Capitalisation of Borrowing Costs 104 Note 53 Pension Schemes Accounted for as Defined Contribution Schemes 105 Note 54 Defined Benefit Pension Schemes 106 Note 55 Contingent Liabilities 112 Note 56 Contingent Assets 113 Note 57 Group Relationships and Other Interests 114 Note 58 Trust Funds 115 Lincolnshire County Council Pension Fund 116 (including the Pension fund account, net assets statement (balance sheet) and notes). Lincolnshire Fire and Rescue Pension Fund 145 (including the Pension fund account, net assets statement (balance sheet) and notes). Audit Opinion 148 Annual Governance Statement 150 Appendix A - Officer Remuneration split between staff employed in schools and all other parts of 162 the Council. Glossary of Terms 163 2 Statement of Accounts 2012-13 Explanatory Foreword Introduction to the Accounts The Statement of Accounts for the year 2012-13 is set out on pages 12 to 16. The purpose of the published Statement of Accounts is to give electors, local tax payers and service users, elected members, employees and other interested parties clear information about the Council’s finances. It should answer such questions as: What did the Council’s services cost in the year of account? Where did the money come from? What were the Council’s assets and liabilities at the year-end? Content The Explanatory Foreword This provides a general introduction to the Accounts, focusing on explaining the more significant features of the Council’s financial activities during the period 1 April 2012 to 31 March 2013. It is based on the information contained in the Statement of Accounts and the Council's Financial Performance Report for 2012-13. Movement in Reserves Statement for the period 1 April 2012 to 31 March 2013 This statement shows the movement in the year on the different reserves held by the Authority, analysed into ‘usable reserves’ (i.e. those that can be applied to fund expenditure or reduce local taxation) and other reserves. The (Surplus) or Deficit on the Provision of Services line shows the true economic cost of providing the Authority’s services, more details of which are shown in the Comprehensive Income and Expenditure Statement. These are different from the statutory amounts required to be charged to the General Fund Balance for Council Tax setting purposes. The Net Increase/Decrease before Transfers to Earmarked Reserves line shows the statutory General Fund Balance before any discretionary transfers to or from earmarked reserves undertaken by the Council. Comprehensive Income and Expenditure Statement for the period 1 April 2012 to 31 March 2013 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 taxation. Authorities raise taxation to cover expenditure in accordance with regulations; this may be different from the accounting cost. The taxation position is shown in the Movement in Reserves Statement. Balance Sheet as at 31 March 2013 The Balance Sheet shows the value as at the Balance Sheet date of the assets and liabilities recognised by the Authority. The net assets of the Authority (assets less liabilities) are matched by the reserves held by the Authority. Reserves are reported in two categories. The first category of reserves are usable reserves, i.e. those reserves that the Authority may use to provide services, subject to the need to maintain a prudent level of reserves and any statutory limitations on their use (for example the Capital Receipts Reserve that may only be used to fund capital expenditure or repay debt). The second category of reserves are those that the Authority is not able to use to provide services. This category of reserves includes reserves that hold unrealised gains and losses (for example the Revaluation Reserve), where amounts would only become available to provide services if the assets are sold; and reserves that hold timing differences shown in the Movement in Reserves Statement line ‘Adjustments between accounting basis and funding basis under regulations’. Cash Flow Statement for the period 1 April 2012 to 31 March 2013 The Cash Flow Statement shows the changes in cash and cash equivalents of the Authority during the reporting period. The Statement shows how the Authority generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Authority are funded by way of taxation and grant income or from the recipients of services provided by the Authority. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Authority’s future service delivery. Cash flows arising from financing activities are useful in predicting claims on future cash flows by providers of capital (i.e. borrowing) to the Authority. 3 Notes to the Accounts These comprise of a summary of significant accounting policies, further information and detail of entries in the prime Statements above and other explanatory information. The Statement of Responsibilities for the Statement of Accounts This details the financial responsibilities of the Council, the Chairman of the Council and the Executive Director - Resources and Community Safety. The Governance Statement This identifies the systems that the Council has in place to ensure that its business is conducted in accordance with the law and proper standards and that public money is safeguarded and properly accounted for. Audit Opinion This contains the External Auditor’s report and opinion on the Accounts. The Lincolnshire Pension Fund Account This shows the operation of the Lincolnshire Pension Fund run by the Council for its own employees and employees of the seven District, City and Borough Councils in Lincolnshire along with other admitted bodies. The Lincolnshire Fire and Rescue Pension Fund Account This shows the operation of the Lincolnshire Fire and Rescue Pension Fund run by the Council for its own Fire-fighter employees. 4 A review of financial performance in 2012-13 by the Executive Director - Resources and Community Safety Review of the Year The Council set its spending plans for 2012-13 against a backdrop of considerable national economic uncertainty, significantly reduced Government grant funding; the rising demand for services such as adults care and delivery of the second year of savings from the Council's core offer review of services. In setting the budget for 2012-13, the Council's aim was to set a balanced and deliverable budget that would effectively address spending pressures whilst protecting frontline services wherever possible, and deliver a continued freeze in Council Tax for the second year running. Annual Revenue Spending The Council spent £929.9m in 2012-13 in providing public services, or £1,295 for every person in Lincolnshire. The Council's annual spending on providing public services are set out in the charts below and show how this was used both by type of service provided and by type of expenditure. Gross Expenditure Service Analysis (£'m) 2.5% 6.0% Adult Social Care £199.5m 3.2% 21.4% Other Services £111.7m 6.2% Schools £334.5m Children's Social Care & Education 12.7% Services £118.0m Highways & Transportation £57.6m 12.0% Environment Planning & Customer Services £29.8m Fire & Rescue and Emergency Planning £22.8m Capital Financing Charges £56.0m 36.0% Other services includes: Public Health, Economy & Culture, Fire & Rescue, Community Safety, Finance & Resources and Performance & Governance.

Load more